American Electric, Algonquin Power subsidiary terminate transaction

American Electric Power (AEP) earlier today said it "reaffirms its commitment to Kentucky customers" and outlined its strategic plans for Kentucky Power and AEP Kentucky Transco after AEP and Liberty, a subsidiary of Algonquin Power & Utilities Corp. (AQN), agreed to terminate the previously announced transaction under which AEP would sell its Kentucky operations to Liberty. "We are working diligently to reimagine our strategy with the goal of not just supporting Kentucky but being an essential part of its economic and energy future. We believe there are opportunities ahead for our Kentucky operations, and we will focus our efforts on economic development, reliability and controlling cost impacts to customers. Our team is eager to get to work implementing a refreshed long-term strategy that maximizes the full potential of our Kentucky operations – not just for AEP, but for the communities we serve. I am confident that we have the right team in place to lead this effort and power the future in Eastern Kentucky, while delivering value for customers, employees and investors," said Julie Sloat, AEP president and CEO. In the near-term, AEP plans to file a base rate case in Kentucky in June with a six-month expected commission approval process, and new rates taking effect in January 2024. In addition, AEP said it will "focus on right-sizing its rate base to better meet the region’s needs and address costs while providing reliable service to customers in the near-term. This includes securitizing retired coal assets through the Kentucky commission’s approval to reduce rates for customers." The company added: "AEP and its Kentucky operations leadership teams will leverage years of industry experience and expertise to take a new look at the business. AEP’s refreshed Kentucky strategy represents an opportunity to move forward and be a part of Kentucky’s energy future. AEP also named Cindy Wiseman as Kentucky Power president and chief operating officer. Wiseman’s experience overseeing customer service, economic development and government affairs positions her well to redefine the company moving forward."