AEP Provides Update on Strategic Review, Sale Process for Merchant Generation

During an earnings call yesterday, AEP provided an update on its strategic review and sale process for its merchant generation which is not subject to a PPA with AEP Ohio

AEP said that final bids for the assets are due in the third quarter with the company aggressively planning to complete and close a transaction by the end of the year.

AEP also announced that, due to FERC's decision to review PPAs between AEP Ohio and affiliated generation, AEP will institute a strategic review of the assets that were covered under the PPAs, separate from the strategic review of the non-PPA assets.

Such a strategic review of the PPA assets will occur in parallel to AEP's attempts to seek re-regulation in Ohio (click here for related story)

"[W]hichever results in AEP becoming fully regulated earliest will be completed," Akins said

Realistically, Akins said that the strategic review for the PPA assets would likely extend into early 2017, though completing such a review by year-end may be "doable" but "aggressive." More likely, however, Akins said that PPA asset strategic review will extend into the first or second quarter of 2017