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FORT WAYNE, Ind. - Indiana Michigan Power (I&M), under its parent company American Electric Power (NASDAQ:AEP), has filed a proposal with the Indiana Utility Regulatory Commission (IURC) to acquire the Oregon Clean Energy Center, an 870 megawatt natural gas facility in Oregon, Ohio. This move is part of I&M's strategic "Future Ready" plan, aimed at addressing the growing energy needs of its customers.
The acquisition of the natural gas plant is intended to diversify I&M's energy portfolio, which already includes solar, wind, nuclear, coal, and hydroelectric units. Steve Baker, I&M president and COO, expressed the company's commitment to ensuring reliable and affordable power for both current and future customers. The Oregon Clean Energy Center is expected to help meet the 24/7 operational demands of I&M's customer base.
I&M is experiencing a pivotal period with projections indicating that power demand in Indiana could more than double from approximately 2,800 MW in 2024 to over 7,000 MW by the 2030s. The company's proactive approach includes seeking additional resources throughout 2025 to support its Future Ready Plan.
The IURC's approval process for the acquisition will confirm that the plant serves the public interest and offers a just and reasonable solution to the anticipated surge in energy consumption. A decision is anticipated in early 2026.
Currently, I&M operates a diverse generation portfolio, delivering more than 85% emission-free energy in 2023. The company's assets include 2,278 MW of nuclear generation in Michigan, 450 MW of wind generation in Indiana, over 22 MW of hydro generation across both states, and approximately 35 MW of large-scale solar generation.
This potential expansion aligns with American Electric Power's broader investment strategy, committing $54 billion from 2025 through 2029 to enhance customer service and meet community energy needs. As one of the nation's largest electricity producers, AEP operates the largest electric transmission system and delivers energy to 5.6 million customers across 11 states. With annual revenue of $19.7 billion and a solid financial health score of 2.53 (rated as "Good" by InvestingPro), AEP continues to demonstrate strong operational performance. Discover more insights about AEP's financial outlook and growth potential through InvestingPro's comprehensive research reports, available for over 1,400 US stocks.
The information presented in this article is based on a press release statement from Indiana Michigan Power.
In other recent news, American Electric Power (AEP) has been active in both financial maneuvers and executive appointments. AEP confirmed a $2 billion common stock offering, facilitated by Citigroup and Barclays, as part of its broader financial strategy. This move aligns with the company's efforts to meet its equity needs, which include a $2.3 billion forward equity sale, contributing to its extensive capital expenditure plan of $54.4 billion through 2029. Additionally, AEP's sale of a 19.9% equity interest in its transmission companies to KKR & Co. Inc. and PSP Investments for $2.82 billion will further bolster its financial flexibility.
Moody's has maintained AEP's Baa2 rating with a stable outlook, while the outlook for its subsidiary, Indiana Michigan Power, has been upgraded to positive. Conversely, AEP Texas' rating was downgraded to Baa3 due to elevated capital expenditures funded mainly by debt. Analyst firms have also weighed in, with UBS maintaining a Sell rating, citing regulatory outcomes as a potential influence on future valuations, while BMO Capital Markets raised its price target to $111, endorsing an Outperform rating.
In leadership changes, AEP appointed Puesh M. Kumar as vice president of National Security and Resilience, emphasizing the company's focus on cybersecurity and grid resilience. Kumar's extensive background in energy security is expected to enhance AEP's engagement with governmental and industry stakeholders. These developments reflect AEP's ongoing efforts to strengthen its operational and financial position while addressing regulatory and market expectations.
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