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AEP Sells Four Inactive Plant Sites In Texas

by Staff Writers
Columbus OH (SPX) Feb 25, 2008
American Electric Power has sold four inactive generating plants owned by its AEP Texas North Generation Company subsidiary to Eagle Construction and Environmental Services, LP. The plants, which have not operated since 2004 or earlier, had a total generating capacity of 656 megawatts and had produced electricity from natural gas or oil. Terms of the transaction were not disclosed.

Plants included in the transaction were:

- Fort Phantom, Abilene, Texas - 362 megawatts, approximately 164 acres;

- Lake Pauline, near Quanah, Texas - 35 megawatts, approximately 1,237 acres;

- San Angelo, San Angelo, Texas - 123 megawatts, approximately 96 acres;

- Rio Pecos, near Girvin, Texas - 136 megawatts, approximately 242 acres.

In August, 2007, AEP announced its intent to sell the four inactive plants. The transaction eliminates annual on-going costs incurred by AEP from continued ownership of the properties.

A fifth inactive generating plant -- the 85-megawatt Oak Creek plant on 113 acres near Blackwater, Texas -- was conveyed to the City of Sweetwater under terms related to a settlement agreement executed by the parties in 2005. Oak Creek has not operated since 2002.

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