September 16, 2014 6:25 PM ET

Electric Utilities

Company Overview of Kentucky Power Company

Company Overview

Kentucky Power Company engages in the generation, purchase, sale, transmission, and distribution of electric power in eastern Kentucky. As of May 2, 2013, the company provided electricity to approximately 173,000 customers in 20 eastern Kentucky counties. It also sells electricity at wholesale to municipalities. The company was founded in 1919 and is headquartered in Frankfort, Kentucky. Kentucky Power Company is a subsidiary of American Electric Power Company, Inc.

101 A Enterprise Drive

PO Box 5190

Frankfort, KY 40602

United States

Founded in 1919

Phone:

614-716-3162

Fax:

614-716-1449

Key Executives for Kentucky Power Company

President and Chief Operating Officer
Age: 62
Director and President of American Electric Power Company Inc
Age: 67
Chief Accounting Officer
Executive Vice President
Age: 61
Director and Executive Vice President of American Electric Power Company Inc
Age: 59
Compensation as of Fiscal Year 2014.

Kentucky Power Company Key Developments

Kentucky Power Gets Kentucky Public Service Commission Approval to Convert Smaller Big Sandy Plant from Coal to Natural Gas

The Kentucky Public Service Commission approved a plan that will enable Kentucky Power Co. to continue generating electricity at its Big Sandy plant by converting the smaller of its two coal-fired units to run on natural gas. The decision does not affect plans to close the larger unit by June 1, 2015. The Big Sandy plant is near Louisa in Lawrence County. In an order issued, the PSC said conversion of the unit is the most cost-effective way for Kentucky Power to meet its generation needs and "preserves a viable generating plant operating within the Commonwealth, thus retaining some of the current employees and supporting the local tax base. Kentucky Power is converting Big Sandy Unit 1 to meet stricter federal air-quality requirements to reduce emissions of mercury and other toxics. Without the conversion, the 278-megawatt unit would have to be shut down in April 2015. The PSC said converting Big Sandy Unit 1 also permits Kentucky Power to diversify its fuel supply and thus be less vulnerable to future "regulatory or economic changes targeted at a single fuel source". After Kentucky Power determined that it made no economic sense to retrofit the 50-year-old Big Sandy Unit 1 to meet stricter air-quality standards and continue burning coal, the company analyzed a number of options for replacing its generating capacity. These included buying power on the open market and eventually building a new natural-gas fired plant. At a cost of $50 million, the coal-to-gas conversion of Big Sandy Unit 1 proved to be the most reasonable and lowest-cost option and will have the lowest impact on rates, the PSC said. In addition to converting the unit, which will reduce its capacity from 278 megawatts to 268 megawatts, the plan calls for construction of a natural gas pipeline to serve the plant. Columbia Gas Transmission LLC will build and operate the pipeline and will recover the $49 million cost from Kentucky Power over a 15-year period. The coal-to-gas conversion of Big Sandy Unit 1 is the final piece of Kentucky Power's restructuring of its electricity-generation portfolio. Last year, the PSC authorized Kentucky Power to buy a 50% interest in Ohio Power Co.'s Mitchell power plant, which is south of Moundsville, W.Va. Kentucky Power and Ohio Power are both subsidiaries of American Electric Power Co. The 780 megawatts of coal-fired capacity at Mitchell will replace the 800-megawatt Unit 2 at Big Sandy. Under a 2007 federal court consent decree, Kentucky Power decided to close the unit in mid-2015 rather than upgrade it to meet stricter air-emission standards. The purchase of the Mitchell capacity was far less costly than upgrading Big Sandy Unit 2 and would have a much smaller impact on rates, the PSC said in approving the transaction.

Kentucky Power Co. Plans to Close 800-Megawatt Unit in 2015

Kentucky Power Co. plans to close the 800-megawatt unit in 2015. Dozens of prime jobs will be lost in a county of 16,000 people with little other industry and a jobless rate around 10%.

American Electric Power Co., Inc. and Subsidiaries Enters into $1,000 Million Term Credit Agreement

On July 17, 2013, American Electric Power Company, Inc.(AEP) terminated its $1,000,000,000 Twenty-Seven Month Term Credit Agreement, dated February 13, 2013, among AEP, the Initial Lenders named therein, and Wells Fargo Bank, National Association, as Administrative Agent, and was replaced with the credit agreement. On July 17, 2013, AEP, Appalachian Power Company (APCo), AEP Generation Resources Inc. (AGR), Kentucky Power Company (KPCo) and Ohio Power Company (OPCo) entered into a $1,000,000,000 Term Credit Agreement, dated as of July 17, 2013 among, APCo, AGR, KPCo and OPCo, severally and not jointly, as Borrowers AEP, as Guarantor of AGR, the Initial Lenders named therein, and Wells Fargo Bank, National Association, as Administrative Agent. This is a replacement Credit Agreement entered into to provide additional liquidity during the corporate separation process for OPCo. OPCo may assign borrowings under the Credit Agreement to AGR upon the transfer of OPCo's generation assets to AGR. Subject to regulatory approval, AGR may further assign a portion of the borrowings to APCo and KPCo upon AGR's subsequent transfer of certain of those generation assets to APCo and KPCo. Borrowings by OPCo under the Credit Agreements are available and will occur upon customary terms and conditions for facilities of this type. The Credit Agreement contains certain covenants and require AEP and each Borrower to maintain its percentage of debt to total capitalization at a level that does not exceed 67.5%. The method for calculating outstanding debt and other capital is contractually defined in the Credit Agreement. Nonperformance of these covenants could result in an event of default under the Credit Agreement. The acceleration of payment obligations or the obligations prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $50 million would cause an event of default under the Credit Agreement and permit the lenders to declare outstanding amounts payable. The Credit Agreement does not permit the lenders to refuse a draw on the facility if a material adverse change occurs.

Similar Private Companies By Industry

Company Name Region
Walton EMC United States
Minnesota Power Enterprises, Inc. United States
Comed Financing I United States
Gulf Power Company United States
Menard Electric Cooperative, Inc. United States

Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
October 7, 2013
780-Megawatt Mitchell Power Plant in West Virginia
 

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
NYC2012, Inc. United States
Lawyers Committee for Civil Rights Under Law United States
Bertelsmann AG Europe
Rush University United States
Greater Houston Partnership United States

Sponsored Financial Commentaries

Sponsored Links

Report Data Issue

To contact Kentucky Power Company, please visit www.kentuckypower.com. Company data is provided by Capital IQ. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.