CHARLESTON, W.Va. – American Electric Power has announced its intention to sell Kentucky Power to an electricity supplier based in Canada.
The announced buyer of the transaction is Liberty, a regulated company of parent company Algonquin Power and Utilities Corporation based in Ontario, Canada. Liberty is a regulated electricity, natural gas, water and wastewater company with more than one million customers in 13 US states and Canada.
The sale will amount to $ 2.846 billion if approved by regulators. The transaction will make Liberty the owner of Kentucky Power’s Big Sandy plant and half of the Mitchel plant in Moundsville, West Virginia. About 360 workers at the Big Sandy plant work either for Kentucky Power or directly for AEP. They will be transferred to Liberty’s payroll when the sale is finalized, scheduled for the second quarter of next year.
There are approximately 200 workers at the Mitchel plant who will be transferred from Kentucky Power to the AEP Wheeling Power subsidiary. Liberty will own and obtain power from Kentucky’s Power’s 50% interest in the Mitchell plant until 2028.
Officials say customers are notified of the change, but it won’t require them to take any action. All outages must be reported to Kentucky Power and all payments continue to go to Kentucky Power as well.