Bulletin: American Electric Power Co. Inc. Ratings Are Not Immediately Affected By FERC Decision

NEW YORK (Standard&Poor's) April 28, 2016--Standard&Poor's Ratings Services said today that the Federal Energy Regulatory Commission's (FERC) decision to revoke waivers of affiliate power sales restrictions granted to American Electric Power Co. Inc. (AEP) (BBB/Positive/A-2) does not immediately affect the ratings and outlook on the company. AEP was relying on the use of these waivers to pursue a purchase power agreement (PPA) for a portion of its nonutility generation assets, which would have led to revenue and cash flow certainty for these assets. Based on today's decision, FERC would have to review and approve the PPA agreements before they take effect. At the same time, AEP is continuing to pursue the divestiture of the remaining nonutility

...NEW YORK (Standard & Poor's) April 28, 2016--Standard & Poor's Ratings Services said today that the Federal Energy Regulatory Commission's (FERC) decision to revoke waivers of affiliate power sales restrictions granted to American Electric Power Co. Inc. (AEP) (###/Positive/A-2) does not immediately affect the ratings and outlook on the company. AEP was relying on the use of these waivers to pursue a purchase power agreement (PPA) for a portion of its nonutility generation assets, which would have led to revenue and cash flow certainty for these assets. Based on today's decision, FERC would have to review and approve the PPA agreements before they take effect. At the same time, AEP is continuing to pursue the divestiture of the remaining nonutility generation assets. Only a rating committee may determine a rating action and this report does not constitute a rating action....

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