COLUMBUS, Ohio, March 23, 2015 – American Electric Power (NYSE: AEP) today announced that it is has engaged Morgan Stanley & Co. LLC to explore strategic alternatives for its competitive barge transportation subsidiary, AEP River Operations LLC. AEP River Operations is one of the largest U.S. inland marine transportation companies providing transportation services for bulk commodities, coal and liquids.
AEP is committed to completing its review of potential alternatives for River Operations as promptly as practicable. There are no assurances that any particular alternative will be pursued or that any transaction will occur, or on what terms. The company does not plan to release additional information about the status of the review of alternatives until a definitive agreement is entered into or the process is otherwise completed.
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5.3 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. 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). AEP’s headquarters are in Columbus, Ohio.