The American Electric Power (AEP) subsidiary also intends to transfer $530m in costs associated with 50% ownership of the Mitchell Generation Station, a 1,560MW coal-fired power plant at Moundsville in West Virginia, from AEP Ohio.
Kentucky Power is seeking to obtain 50% of the output of the Mitchell power plant’s 770MW Unit 1 and 790MW Unit 2, for a total transfer of 780MW.
The other 50% ownership in both units would be transferred to AEP subsidiary Appalachian Power Company which will operate and maintain the Mitchell power plant.
The latest AEP filing replaces a filing for a scrubber system for Unit 2 that was withdrawn. The firm noted that the filing could result in an 8% increase on customers’ bills, while the scrubber system would have resulted in nearly 31% hike on monthly bills.
Kentucky Power’s transaction is subject to approvals from various authorities, including Kentucky Public Service Commission, and Federal Energy Regulatory Commission.
Kentucky Power president and COO Greg Pauley opined that the latest filing represents the best path forward for the firm to meet both its customer and environmental obligations.
"While it does represent an increase in customer’s rates of about eight percent, it is substantially less than our previous filing and will save our customers millions of dollars while bringing us into environmental compliance," Pauley added.
"Although the plant will continue to run as it does today for a couple more years, any employee affected by today’s announcement will have the opportunity to pursue other job prospects with AEP and Kentucky Power."
Electric utility AEP delivers power to more than five million customers in 11 states of in the US.
