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American Electric may decide on power plant sale this year

  • American Electric Power (AEP), the biggest U.S. operator of coal-burning power plants, may decide later this year or early next whether it will follow Duke Energy by selling plants in the Midwest, CEO Nick Akins tells Bloomberg.
  • Without more earnings stability, such as long-term agreements with power buyers, Akins says AEP will look to sell the Generation Resources unit, which doesn’t get guaranteed returns like its regulated business.
  • The unit owns ~10K MW of power plant capacity, but Akins says his promise of 4%-6% annual growth in per-share profit for the company doesn’t hinge on those power plants.
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