Kentucky officials ask FERC to nix AEP’s $2.6B sale of Kentucky operations
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Kentucky utility regulators and attorney general urged the Federal Energy Regulatory Commission to again reject American Electric Power's (NASDAQ:AEP) proposed $2.6B sale of its Kentucky operations to Algonquin Power's (NYSE:AQN) Liberty Utilities, UtilityDive.com reported Friday.
The companies failed to show how the sale would affect transmission rates in AEP East's (AEP) seven-state area, the issue that caused FERC to reject the original application in December, the Kentucky Public Service Commission and others reportedly said.
"Without knowing the adverse effects on zonal transmission rates, it is impossible for FERC and other parties to be able to determine whether the rate mitigation commitments actually offset or mitigate the adverse effects of the proposed transaction," the state officials said in a joint filing.
AEP (AEP) has said it faces an April 26 contractual deadline to complete the deal.
American Electric Power's (AEP) "margin contraction is temporary and the company will be stronger after they restructure their portfolio," Blake Downer writes in an analysis published recently on Seeking Alpha.