AEP Selling Lawrenceburg Natural Gas Plant

By Mike Perleberg Photo by Mike Perleberg, Eagle Country 99.3. (Lawrenceburg, Ind.) - A Lawrenceburg power plant is being sold off by American Electric Power. The Wall Street Journal reported Tuesday that two private-equity firms are close to an agreement to purchase four plants in Indiana and Ohio from American Electric Power. AEP confirmed the deal with an announcement Wednesday morning. Those plants include the 1,186 megawatt natural gas Lawrenceburg Generating Station on U.S. 50. The others are the coal-fired James M. Gavin Power Plant in Cheshire, Ohio and the natural gas-fueled Waterford Energy Center near Waterford, Ohio and the Darby Generation Station near Mount Sterling, Ohio. A newly formed joint venture by private equity firms Blackstone and ArcLight Capital Partners LLC is the buyer. The purchase price for all four plants is a combined $2.17 billion, from which AEP expects to net about $1.2 billion. The sale is expected to close in the first quarter of 2017, though remains subject to regulatory approval. AEP announced in January 2015 that the company was exploring strategic alternatives for these power plants, including a potential sale. “AEP’s long-term strategy has been to become a fully regulated, premium energy company focused on investment in infrastructure and the energy innovations that our customers want and need. This transaction advances that strategy and reduces some of the business risks associated with operating competitive generating assets,” said Nicholas K. Akins, AEP chairman, president and CEO. Akins touched vaguely on the fate of employees at each of the four generating stations. “Our employees have done an incredible job operating these power plants in PJM, and I’m confident that they will contribute to the future success of Blackstone and ArcLight. We will continue to operate these plants safely in the coming months while working closely with the Blackstone and ArcLight teams to obtain the regulatory approvals necessary to complete the sale. We also will be working with employees and community leaders to ensure a smooth transition,” Akins said. The 12-year-old Lawrenceburg natural gas plant was purchased for $325 million by American Electric Power from Public Service Enterprise Group in 2007. The Lawrencbeurg natural gas plant operates separately from the coal-fired Tanners Creek Power Plant, mothballed by AEP last year.