AEP Takes $2.3 Billion Impairment Charge Related To Competitive Generation

AEP in reporting earnings this morning said that it took a pre-tax impairment charge of $2.3 billion in third-quarter 2016 largely to write-down AEP's remaining competitive generation assets in Ohio to their estimated fair value.

The $2.3 billion impairment largely relates to AEP's ownership share of 2,684 megawatts of competitive generation in Ohio, including the Cardinal, Conesville, Stuart and Zimmer plants. It also includes the competitive portion of the Oklaunion Plant in Texas, Desert Sky and Trent Mesa wind farms and some coal-related properties.

AEP reiterated that its strategic focus is investing its regulated operations

AEP's earnings growth strategy also includes incremental investment in renewable generation projects throughout the United States.

AEP recently formed new subsidiaries – AEP OnSite Partners and AEP Renewables – to invest in renewable generation, energy storage and combined heat and power projects that provide cleaner energy under long-term contracts for cities, schools, companies, utilities and municipalities.

"AEP OnSite Partners and AEP Renewables already have projects in nine states with a strong pipeline of additional opportunities. AEP expects to invest approximately $1 billion in renewable energy projects from 2017 through 2019," AEP said