In an effort to become a fully regulated power company, American Electric Power (AEP) has agreed to sell four Midwestern power plants—representing a total of 5.2 GW—to a newly formed joint venture of Blackstone and ArcLight Capital Partners for about $ 2.17 billion. 

AEP will sell:

• the 1,186-MW natural gas–fired Lawrenceburg Generating Station in Lawrenceburg, Ind.
• the 840-MW natural gas–fired Waterford Energy Center in Waterford, Ohio
• the 507-MW natural gas–fired Darby Generating Station in Mount Sterling, Ohio
• the 2,665-MW coal-fired Gen. James M. Gavin Plant in Cheshire, Ohio

All generating capacity is located in the region served by PJM Interconnection.

The sale is expected to close in the first quarter of 2017, but it is subject to regulatory approvals from the Federal Energy Regulatory Commission (FERC), the Indiana Utility Regulatory Commission, and federal clearance pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, AEP said.

Moving on Out

Efforts to formalize a power purchase agreement that would have supported continued operation of AEP and FirstEnergy generation capacity in Ohio were punctured by the Federal Energy Regulatory Commission (FERC) on April 27, though the Public Utilities Commission of Ohio (PUCO) had blessed the deal just a month before.…

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