COLUMBUS, Ohio, Feb. 14 /PRNewswire-FirstCall/ -- American Electric Power (NYSE:AEP) subsidiary Texas Central Co. (TCC) completed the sale of its 7.8 percent share of Oklaunion Power Station to the City of Brownsville, Texas (Public Utilities Board Brownsville), for $42.75 million plus adjustments. Brownsville is a co-owner of Oklaunion Power Station.
Oklaunion Power Station is a 692-megawatt coal-fueled generating station located near the Oklahoma border in Vernon, Texas. Two AEP subsidiaries and two other companies jointly own the plant. AEP Texas North Company owns 54.7 percent of the facility and AEP Public Service Company of Oklahoma (PSO) owns 15.6 percent. Brownsville now owns 18 percent and Oklahoma Municipal Power Authority owns 11.7 percent.
AEP announced plans in December 2002 to sell all of the generation assets owned by TCC to determine their market value for calculating stranded costs under Texas restructuring legislation. The company announced June 4, 2004, that Brownsville had exercised its right of first refusal for the TCC share of Oklaunion. Closing of the sale has been delayed by litigation related to the right-of-first-refusal exercise.
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 36,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). The company is based in Columbus, Ohio.
Source: American Electric Power
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