COLUMBUS, Ohio — AEP has reached an agreement to sell Kentucky Power to Liberty, an electric, natural gas, water and wastewater service provider owned by Algonquin Power and Utilities.
The $2.6 billion dollar sale, which was announced Tuesday, won’t be final until it receives regulatory approval. That is not expected to happen until between April and June of next year.
“Kentucky Power and its employees are an important part of the communities in eastern Kentucky, and I am grateful for their valuable contributions to AEP,” said Nicholas K. Akins, AEP chairman, president and chief executive officer. “Liberty’s commitment to safety and operational excellence will allow Kentucky Power employees to continue their critical work producing and delivering reliable power for customers and communities. At the same time, the sale will strengthen AEP’s ability to invest in projects that will support a resilient, cleaner energy system.”
Customers will see little in the way of immediate change. Kentucky Power will remain the name of the local utility, and rates will remain the same after the sale. Any future change in rates would require approval from the Kentucky Public Service Commission.
Kentucky Power’s 315 workers and 45 AEP employees will be transferred to the new company.
“We’ve been proud to serve Kentucky Power customers for more than a century, and the commitment of our employees will remain strong throughout this transition and beyond,” said Brett Mattison, Kentucky Power president and chief operating officer. “We are working closely with Liberty to ensure a seamless transition for our customers and communities. Through their focus on safety, reliability, customer service and sustainability, Liberty is well-positioned to serve Kentucky customers. The same skilled and experienced employees who work to keep the lights on for our customers will continue to do so as part of Liberty.”