Texas PUC Staff: In AEP Texas Merger Case, PUC Must Decide If Merged Company Entitled To Exemption for Generation Ownership (Oklaunion, Mothballed Plants), Or Whether Disposition of Plants Required

As part of its review of the proposed merger of AEP Texas Central and AEP Texas North, the Public Utility Commission of Texas must determine whether the merged AEP Utilities is authorized under the Public Utility Regulatory Act (PURA) to retain AEP Texas North Company's ownership interest in the Oklaunion generating facilities and certain mothballed power plants, PUC Staff said in a statement of position.

"Subsequent to the proposed transaction, AEP Utilities may no longer qualify for the statutory exception that authorizes AEP Texas North Company's ownership of generating facilities," Staff said.

"To the extent that the Commission determines that the exception in PURA § 39.051(c) does not apply to AEP Utilities, then Staff recommends, as a condition to approval of the proposed transaction, that AEP Utilities present the Commission with a plan that addresses the orderly disposition of AEP Texas North Company's current ownership in the Oklaunion generating facilities and certain mothballed power plants," Staff said