American Electric Power has called off the sale of its Kentucky Power subsidiary.
AEP had reached an agreement in late 2021 to sell Kentucky Power to Algonquin Power, based in Canada, for nearly $3 billion.
Kentucky Power serves 165,000 customers in 20 Eastern Kentucky counties. The power is generated by the Mitchell plant in Moundsville, West Virginia. Kentucky Power and Wheeling Power own the plant jointly.
The Federal Energy Regulatory Commission denied approval of the sale in December.
“We are committed to our operations in Kentucky,” AEP spokeswoman Tammy Ridout said in a statement. “We have refocused our efforts on partnering with key stakeholders in Eastern Kentucky to bring opportunities to the region and support the communities we serve.”
When the Mitchell plant required tens of millions of dollars in wastewater treatment upgrades, West Virginia regulators approved the work, but Kentucky’s did not.
The upgrades were necessary to keep the plant operating beyond 2028.
Because of the conflicting decisions between the two states, Kentucky Power will not receive electricity from the plant after 2028, Ridout said.
“The existing operating agreement remains in place, and the companies will work on how to best transition ownership,” she said.