$960 million worth of power
8 Oct 2001
American Electric Power, a multinational energy company based in Columbus, OH, today agreed to acquire 4,000 MW of coal-fired generation in the United Kingdom from Edison Mission Energy, a subsidiary of Edison International.
Assets acquired Fiddler's Ferry, a four-unit, 2,000-MW station on the River Mersey in northwest England and Ferrybridge, a four-unit, 2,000-MW station located on the River Aire in northeast England.
The transaction also includes the fuel supplies associated with Fiddler's Ferry and Ferrybridge.
The acquisition is valued at US$960 million (UK£650 million) and will be immediately accretive to AEP's earnings by approximately $0.06 per share in 2002.
'We are paying approximately $200 per kilowatt for these assets, which is an attractive price based on current market conditions in the UK,' said Hank Jones, senior vice president with AEP subsidiary AEP Energy Services. Jones heads the company's wholesale business in Europe.
AEP intends to fund the acquisition with a combination of short-term debt and non-recourse debt. Since it will generate sufficient cash flow after all debt service, the company anticipates credit ratings will not be impacted. The transaction is expected to be completed by the end of the year.
