Algonquin To Acquire Kentucky Power Company

October 27, 2021

Algonquin— which owns BELCO – announced that Liberty Utilities Co, an indirect subsidiary of Algonquin, has entered into an agreement to acquire Kentucky Power Company for approximately $2.846 billion.

A spokesperson said, “lgonquin Power & Utilities Corp. [AQN] today announced that Liberty Utilities Co., an indirect subsidiary of AQN, has entered into an agreement with American Electric Power [AEP] to acquire Kentucky Power Company and AEP Kentucky Transmission Company, Inc. for a total purchase price of approximately $2.846 billion [approximately C$3.523 billion], including the assumption of approximately $1.221 billion in debt.

“Kentucky Power is a state rate-regulated electricity generation, distribution and transmission utility operating within the Commonwealth of Kentucky, serving approximately 228,000 active customer connections and operating under a cost of service framework.

“Kentucky TransCo is an electricity transmission business operating in the Kentucky portion of the transmission infrastructure that is part of the Pennsylvania – New Jersey – Maryland regional transmission organization [PJM]. Kentucky Power and Kentucky TransCo are both regulated by the U.S. Federal Energy Regulatory Commission [FERC].”

Arun Banskota, President and Chief Executive Officer of AQN, said:  “The acquisition of Kentucky Power and Kentucky TransCo is a continuation of AQN’s disciplined growth strategy, adding to its regulated footprint in the United States. Kentucky Power offers an opportunity for AQN to utilize its “greening the fleet” capabilities in a complementary and constructive jurisdiction.

“Including Kentucky Power under the AQN umbrella also enables AQN to leverage its operational experience to improve customer outcomes in Kentucky by executing on AQN’s core values of providing safe and reliable service to its customers.

“The Transaction is expected to be accretive to Adjusted Net Earnings per share and to support the Company’s growth trajectory, extend AQN’s environmental leadership by providing an opportunity to replace over 1 GW of rate based fossil fuel generation with renewable energy, and add long lived, regulated assets to its portfolio.”

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