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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