Kentucky Power sale terminated

BOYD COUNTY, Ky. (WSAZ) - The sale of Kentucky Power was mutually terminated, the company announced Monday.

AEP announced in October 2021 that it plans to sell its Kentucky operations, including Kentucky Power, for $2.846 billion after the sale is approved by regulators.

“The sale process started nearly two years ago because of the time it’s taken and delays that occurred, market conditions changing... we [AEP and Liberty Utilities] decided it was time to walk away from the agreement,” Kentucky Power President Cindy Wiseman said.

Although in-state approval was issued, the companies failed to receive it from federal regulators.

The PSC approved the transaction in May but was limited by state law in its review of the deal, according to the filing with Federal Energy Regulatory Commission.

A FERC commissioner said the agency only denied five of 2,000 sale applications in the last 10 years.

Wiseman said the company is working to reevaluate customers’ concerns about increasing rates.

“We’re committed to this region ... There is a balance on what they [customers] can bare as the economy and what it takes for a company to operate financially,” Wiseman said. “We’re starting that process now to reevaluate to see what we can do. We’re sensitive to the economy of Eastern Kentucky.”

Kentucky Power officials said customers do not need to take action. There will not be any changes to their account, billing, or payment information.