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Released May 10, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In anticipation of rocky economic conditions, American Electric Power Company Incorporated (NASDAQ:AEP) (AEP) (Columbus, Ohio) is planning to sell off its competitive retail energy business, as part of a broader effort to simplify and de-risk its portfolio as economic activity slows in its service areas. The company is now focusing on its core regulated utility operations, which include more renewable investments and upgrades to major transmission systems. Industrial Info is tracking nearly $8 billion worth of active projects from AEP, more than half of which is attributed to transmission and distribution (T&D) projects.
Click on the image at right for a graph detailing AEP's active projects across the U.S., by project type.
AEP expects to sell AEP Energy, its competitive retail energy unit, to IRG Acquisition Holdings (IRG) (Los Angeles, California), a subsidiary of Invenergy (Chicago, Illinois). The company also initiated a "strategic review" of three non-core T&D joint ventures--Prairie Wind Transmission, Pioneer Transmission and Transource Energy--which include 370 miles of transmission lines and four substations. Earlier this year, AEP agreed to sell its 1,365-megawatt (MW) portfolio of unregulated, contracted renewable assets to IRG.
"In October 2022, we announced the strategic review of our AEP Energy retail business, which primarily operates in the PJM markets," said Julie Sloat, the chief executive officer of AEP, in last week's quarterly earnings-related conference call. "We've completed that strategic review and decided that we will start a sales process for that business and will also fold into the process AEP OnSite Partners, which is our unregulated distributed resources business."
AEP's active projects in the PJM Interconnection service territory, which runs from the Great Lakes area to the northern Mid-Atlantic region, include a host of major T&D improvement projects. The $72 million upgrade of a line from Hillsboro to Lucasville, Ohio, which runs about 30 miles, began construction in September to address outdated components and potential overload issues. AEP Ohio Transmission Company, a subsidiary, also is proposing a rebuild of the line from Wheelersburg to South Point, Ohio, which would run about 88 miles.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Hillsboro-to-Lucasville and Wheelersburg-to-South Point projects.
Public Service Company of Oklahoma, a subsidiary of AEP, is proposing its own T&D improvement projects, including a 72-mile rebuild of a line from Lawton to Lone Grove, Oklahoma, and an 88-mile rebuild of a line from Lone Grove to Kiowa, Oklahoma. The 345-kilovolt line is supported, in some places, by wooden poles that have not been updated since the 1970s. Subscribers can read detailed reports on the Lawton-to-Lone Grove and Lone Grove-to-Kiowa projects.
AEP also is developing the $50 million Fort Sill Solar Plant in Lawton, Oklahoma, which is designed to generate 14 MW for the Fort Sill military base, the home of the U.S. Army Field Artillery School. It is set to be completed sometime next year. Subscribers can learn more from Industrial Info's project report.
Sloat said in the earnings call that the Oklahoma projects are bolstered by the company's progress on the regulatory front: "Public Service of Oklahoma Company, along with other parties, filed a settlement in early April of 2023 in the fuel-free power plan case, which relates to PSO's 995.5-megawatt solar and wind portfolio for $2.5 billion." Sloat said the settlement "provided crucial capacity without fuel expense that'll help address PSO's large capacity need. The case took a positive step forward last week when the judge issued a preliminary opinion approving the settlement on April 27."
To achieve net-zero carbon emissions by 2045, AEP plans to retire thousands of megawatts of coal-fired generation across its service territory by 2030. The company says it retired nearly 13,000 MW of coal-fueled generation during the 2010s and will retire about 5,300 MW this decade. Subscribers to Industrial Info's GMI Power Project Database can click here for a list of planned and active closure, dismantlement, decommissioning and disposal projects at AEP's coal-fired facilities, and click here for a list of affected plants.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active or proposed AEP projects.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing AEP's active projects across the U.S., by project type.AEP expects to sell AEP Energy, its competitive retail energy unit, to IRG Acquisition Holdings (IRG) (Los Angeles, California), a subsidiary of Invenergy (Chicago, Illinois). The company also initiated a "strategic review" of three non-core T&D joint ventures--Prairie Wind Transmission, Pioneer Transmission and Transource Energy--which include 370 miles of transmission lines and four substations. Earlier this year, AEP agreed to sell its 1,365-megawatt (MW) portfolio of unregulated, contracted renewable assets to IRG.
"In October 2022, we announced the strategic review of our AEP Energy retail business, which primarily operates in the PJM markets," said Julie Sloat, the chief executive officer of AEP, in last week's quarterly earnings-related conference call. "We've completed that strategic review and decided that we will start a sales process for that business and will also fold into the process AEP OnSite Partners, which is our unregulated distributed resources business."
AEP's active projects in the PJM Interconnection service territory, which runs from the Great Lakes area to the northern Mid-Atlantic region, include a host of major T&D improvement projects. The $72 million upgrade of a line from Hillsboro to Lucasville, Ohio, which runs about 30 miles, began construction in September to address outdated components and potential overload issues. AEP Ohio Transmission Company, a subsidiary, also is proposing a rebuild of the line from Wheelersburg to South Point, Ohio, which would run about 88 miles.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Hillsboro-to-Lucasville and Wheelersburg-to-South Point projects.
Public Service Company of Oklahoma, a subsidiary of AEP, is proposing its own T&D improvement projects, including a 72-mile rebuild of a line from Lawton to Lone Grove, Oklahoma, and an 88-mile rebuild of a line from Lone Grove to Kiowa, Oklahoma. The 345-kilovolt line is supported, in some places, by wooden poles that have not been updated since the 1970s. Subscribers can read detailed reports on the Lawton-to-Lone Grove and Lone Grove-to-Kiowa projects.
AEP also is developing the $50 million Fort Sill Solar Plant in Lawton, Oklahoma, which is designed to generate 14 MW for the Fort Sill military base, the home of the U.S. Army Field Artillery School. It is set to be completed sometime next year. Subscribers can learn more from Industrial Info's project report.
Sloat said in the earnings call that the Oklahoma projects are bolstered by the company's progress on the regulatory front: "Public Service of Oklahoma Company, along with other parties, filed a settlement in early April of 2023 in the fuel-free power plan case, which relates to PSO's 995.5-megawatt solar and wind portfolio for $2.5 billion." Sloat said the settlement "provided crucial capacity without fuel expense that'll help address PSO's large capacity need. The case took a positive step forward last week when the judge issued a preliminary opinion approving the settlement on April 27."
To achieve net-zero carbon emissions by 2045, AEP plans to retire thousands of megawatts of coal-fired generation across its service territory by 2030. The company says it retired nearly 13,000 MW of coal-fueled generation during the 2010s and will retire about 5,300 MW this decade. Subscribers to Industrial Info's GMI Power Project Database can click here for a list of planned and active closure, dismantlement, decommissioning and disposal projects at AEP's coal-fired facilities, and click here for a list of affected plants.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active or proposed AEP projects.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
