American Electric Power and Liberty, an indirect unit of Algonquin Power & Utilities Corp., filed a new application with the Federal Energy Regulatory Commission (FERC) under section 203 of the Federal Power Act seeking approval of the $2.6 billion sale of AEP’s Kentucky operations to Liberty.
The companies asked FERC for an expedited review as they aim to close the deal by April 26.
In December, FERC rejected the sale without prejudice and outlined additional information about customer protections that the petitioners would need to provide.
AEP said in a release that the new 203 application was filed to address concerns raised in FERC’s order. The new application outlines several financial measures Liberty pledged to take for the next five years, including: maintaining the return on equity; maintaining the current cost cap on equity; financing future credit investment at the current credit rating; and capping certain operating and administrative costs.
In its December 15 decision, FERC said that Canada-based Algonquin did not adequately express their commitment to guarantee that customer rates would be protected for a “significant period of time” following the merger or that cost increases would be offset in other ways.
Kentucky Power’s assets include 1,075 MW of generation and more than 1,260 miles of transmission facilities.
