Plant Retirements and Sales
Between 2011 and 2016, AEP retired more than 7,200 megawatts (MW) of coal-fueled generation. The retirements are part of our plan to comply with the federal Mercury Air Toxic Standards (MATS) rule for existing power plants.
In January 2017, AEP completed the sale of four competitive power plants to Lightstone Generation LLC, a joint venture of Blackstone and ArcLight Capital Partners LLC (ArcLight), for approximately $2.1 billion.The sale included 5,200 megawatts of generation:
The Lawrenceburg Generating Station was one of four competitive power plants sold in January 2017.
- Lawrenceburg Generating Station, 1,186 MW natural gas, Lawrenceburg, Ind.
- Waterford Energy Center, 840 MW natural gas, Waterford, Ohio
- Darby Generating Station, 507 MW natural gas, Mount Sterling, Ohio
- Gen. James M. Gavin Plant, 2,665 MW coal, Cheshire, Ohio
Our long-term strategy is to become a fully regulated, premier energy company focused on investment in infrastructure and the energy innovations that our customers want and need. This transaction advanced that strategy and reduced many of the business risks associated with operating competitive generating assets.
These assets, both the physical generating assets and the people who operated and maintained them for decades, have provided tremendous value to AEP and its customers. AEP owns 2,725 MW of additional competitive generation in Ohio and is continuing an independent strategic evaluation of that generation. AEP also is continuing a strategic review of its 48-MW hydroelectric Racine Plant in Racine, Ohio.
In early 2017, AEP and Dynegy signed agreements to sell AEP’s 330-MW share of the Zimmer Plant to Dynegy and to purchase Dynegy’s 312-MW share of Conesville Plant. AEP and Dynegy co-own both plants.
In April 2017, Appalachian Power Company transferred ownership of the Reusens hydroelectric facility on the James River near Lynchburg, Va., to Eagle Creek Renewable Energy, LLC. The sale of Reusens to Eagle Creek allows the dam to continue powering the central Virginia community. The sale was approved by state and federal regulatory authorities.