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$AEP promoted Ashley Weaver to VP, Operations and Performance Transformation, with responsibility for leading its continuous improvement efforts, effective Jan. 3, 2018. She will replace Barbara Radous, SVP, who is retiring from the company. Weaver has served as director of Operations and Performance Transformation since 2012.
AEP Generation Resources Inc. (AEPGR), a competitive generation subsidiary of $AEP, issued a request for proposal (RFP) for the supply of limestone to Cardinal and Conesville power plants. AEPGR seeks a three-year term, starting in 2018 and continuing through 2020, with unilateral options to renew.
$PWR said it was selected by $AEP to provide engineering, procurement and construction (EPC) solutions for the Wind Catcher Generation Tie Line. $PWR will provide turnkey EPC services for the entire project and estimates that up to 1,000 people could be working on the project in Oklahoma, supported by technical and engineering operations in Texas.
$AEP completed the sale of its 330MW share of the Zimmer Plant to Dynegy and the purchase of Dynegy’s 312MW share of Conesville Plant. The transaction has no material impact on AEP earnings. AEP now owns 92% of Conesville Plant. Stuart Plant is expected to be retired by June 1, 2018.
Electric utility company $AEP said its earnings from Vertically Integrated Utilities segment shrunk 58% to $219.5MM in 1Q17. Meanwhile, in other segments, revenue grew 11.6% in Transmission & Distribution Utilities; it grew 28% in AEP Transmission Holdco segment and 115% in Generation & Marketing segment.
In spite of a 1% drop in 1Q17 revenue to $3.9Bil, $AEP reported 91% spike in net earnings. Net earnings were $592.2MM or $1.20 per share, compared with $501MM or $1.02 per share in 1Q16. Excluding special items, earnings stood at $0.96 per share.
$AEP completed the sale of four competitive power plants to Lightstone Generation LLC, a JV of $BX and an affiliate of ArcLight Capital Partners for approx. $2.1Bil. $AEP will net approx. $1.2Bil in cash after taxes, repayment of debt associated with these assets and transaction fees. $AEP recorded an after-tax gain of about $130MM from the sale.
$AEP expects to complete the sale of its four competitive power plants soon and will reduce debt and reinvest net proceeds from that sale in its regulated businesses to support future earnings growth. The company also wrote down its remaining competitive generation assets in 3Q16 and will continue the strategic review process for those plants.