AEP to sell hydro facility in Ohio as part of exit from competitive generation

American Electric Power Co. Inc. entered an agreement to sell the 48-MW Racine hydroelectric power plant in Meigs County, Ohio, owned by its subsidiary AEP Generation Resources, to independent power producer Eagle Creek Renewable Energy LLC.

Financial terms were not disclosed.

The transaction is expected to close in the second quarter of 2021, subject to the approval of the Federal Energy Regulatory Commission, AEP said in a Feb. 9 press release.

AEP Generation Resources has now retired or sold all of its generation capacity consistent with AEP's strategy to exit the competitive generation business. Its remaining property is the 595-MW unit 1 at the coal-fired Cardinal plant in Jefferson County, Ohio, which is set to retire in 2030.

Eagle Creek Renewable Energy, headquartered in Morristown, N.J., owns and operates 86 hydroelectric facilities in 18 states.

Scotiabank is acting as AEP's financial adviser and Porter Wright is serving as legal counsel for the sale process.