In a common-sense transfer of assets, AEP's Appalachian Power may acquire a share it does not own of the John Amos plant near Charleston and part or all of the 1,600-megawatt coal-fired Mitchell Plant near Moundsville, both from AEP-Ohio.
The opportunity arises from AEP's three-year process of reorganizing its Ohio operation into a competitive generation company and a regulated transmission company.
"AEP has a pool where generation feeds power to the pool and the different utilities get different portions of power from the pool," explained AEP spokesman Pat D. Hemlepp.
Two AEP utilities, Appalachian Power and Kentucky Power, are taking more power from the pool to meet their needs than they are generating, Hemlepp said. They could buy power in the open market or build new generation, but the breakup of AEP-Ohio's generation side presents a more economical opportunity.
"So we are looking at potentially transferring the assets themselves, subject to approval by the Federal Energy Regulatory Commission and state regulators," he said.
AEP will make an initial filing with the Federal Energy Regulatory Commission in the coming weeks.
Beyond its current need for more power than it can generate, Appalachian Power has announced that it will respond to environmental regulations by closing its Philip Sporn, Kanawha River and Glen Lyn facilities and converting Clinch River from coal to gas — a loss of 1,255 megawatts of generating capacity.
To offset the capacity shortfall and coming losses, the utility fired up its new 580-mw Dresden gas-fired plant Jan. 31, said Appalachian Power spokeswoman Jeri Matheney.
And as the Ohio process moves forward, Appalachian Power may acquired the 867 megawatts of the John Amos power plant that is owned not by it but by AEP-Ohio, as well as part or all of the two 800-megawatt coal-fired units at Mitchell.
The general aim would be to acquire enough generation to cover demand, Matheney said.
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