Columbus based utility, American Electric Power, has agreed to sell four of its power plants; 3 in Ohio to private-equity firms.
The $2.17 billion deal involves two coal power plants, one in Cheshire, and the other in Mount Sterling. A natural gas plant in Waterford, will also be sold.
AEP spokewoman, Melissa McHenry says the company wants to limit the financial risk from Ohio's deregulation of utility companies.
“When shareholders buy AEP stock and when you buy a utility stock typically they’re looking for stable returns on their investment and competitive power generation business is more volatile, and there’s more risk associated with a return on those assets.”
The buyers for the plants are Blackstone and ArcLight Capital Partners, two private equity funds that are focused on energy infrastructure.
McHenry says AEP customers should not see any changes in their service as a result of the plant sales.
AEP is also selling a natural gas plant in Lawrenceburg, Indiana.
