The power company had struck a deal in October 2021 to sell Kentucky Power and AEP Kentucky Transco to Liberty for $2.85 billion, including debt. The company said then that the proceeds would be used to invest in renewable energy, transmission and other projects.Liberty is the parent of Algonquin Power & Utilities, a Canadian-based company that provides electricity, natural gas, water and wastewater services to more than 1 million customer connections, mainly in 13 U.S. states and Canada.
AEP didn't give a reason on Monday for calling off the sale, but AEP has faced opposition to the sale from state and federal officials and consumer groups worried about what the sale would mean for rates.Kentucky Power serves about 165,000 electricity customers in 20 eastern Kentucky counties. AEP Kentucky Transco is a regulated transmission business with assets exclusively in Kentucky.
"As a partner in Eastern Kentucky for more than 100 years, we’re renewing our focus on bringing opportunities to the region and supporting the communities we serve. We are working diligently to reimagine our strategy with the goal of not just supporting Kentucky but being an essential part of its economic and energy future,” Julie Sloat, AEP's president and CEO, said in a statement.
AEP said it will file a new rate with Kentucky regulators in June with a goal of having new rates in place next January. AEP also said it will use its leverage in the region to focus on bringing jobs and businesses to the region.