FRANKFORT, KY -- Kentucky Power Company, an operating unit of American Electric Power (NYSE: AEP), has issued a Request for Proposals (RFP) to purchase up to 250 megawatts of long term capacity and energy in connection with its evaluation of the least, reasonable cost solution to replace the impending loss of generation at Kentucky Power’s Big Sandy Plant Unit 1. Unit 1, a 278 megawatt coal-fired generating station, is scheduled for retirement in 2015.

The RFP seeks proposals from eligible bidders capable of being on line by June 1, 2015 for a “bundled product” that includes capacity (megawatts), energy (megawatt hours) and ancillary services if available. The RFP is seeking proposals from suppliers who are willing to sell power through a Power Purchase Agreement (PPA), Tolling Agreement (TA), and Asset Purchase Agreement (APA) or other proposals defined by the RFP.  In addition, the RFP also seeks demand-side management and cost-effective energy efficiency proposals. The RFP, as well as terms and conditions and information about submitting proposals, is available at (www.kentuckypower.com/go/rfp).

The RFP is one option Kentucky Power is considering to replace the generating capacity of Unit 1. Another option under consideration is to convert Big Sandy Unit 1 to natural gas generation.

“This RFP will help us determine the best path forward to replace generation at our Big Sandy Plant Unit 1 which will be lost as a result of pending environmental regulations and agreements,” said Greg Pauley, president and chief operating officer of Kentucky Power. “These proposals will not bind Kentucky Power or AEP to any particular path at this point, but will help us evaluate our options for replacing generation to meet our customers’ needs.”

Proposals are due by June 11, 2013 and may be submitted to American Electric Power Service Corporation, Kentucky Power Company RFP Administrator, 155 W. Nationwide Blvd., Columbus, OH 43215.  Questions regarding this RFP can be directed (via email) to 2013KentuckyPowerRFP@aep.com.

Kentucky Power is an operating unit of American Electric Power and provides electricity to approximately 173,000 customers in all or parts of 20 Eastern Kentucky counties. The company is headquartered in Frankfort and has major operating facilities in Ashland, Hazard, Louisa and Pikeville.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 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 nearly 39,000-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.

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