AEP has exploratory talks with Virginia municipality

An American Electric Power (NYSE:AEP) representative confirmed Sept. 23 that the company has had a preliminary discussion with Danville, Va., about the future of that city’s municipal electric utility.

“We had an initial meeting with the City of Danville leadership and are certainly open to this potential opportunity since we serve in areas adjacent to Danville and have an interconnection with the utility,” an AEP spokesperson told GenerationHub in an email.

“However, the City of Danville will be going through a full evaluation of its options before this is ready for serious consideration. We are also doing our own internal review of the possible impacts of a potential purchase,” the AEP spokesperson said.

A Sept. 22 article in the Danville Register &Bee quoted Danville City Manager Joe King as saying that the city held preliminary discussions with AEP recently to see if the company might have interest in purchasing Danville Power & Light – or supplying power to more large industry around the city. The article said that AEP is already supplying power to a local Goodyear tire plant.

“[AEP] will review the system for the next 60 days, but they are open to growing and are quite interested,” King is quoting as telling a meeting of the Danville City Council and Danville Utility Commission.

The city is currently doing a study of its electric utility system and possible options for improvements, officials were quoted as saying.

According to its website, the city’s electric system was formed in 1886 and is one of the oldest municipal electric systems in the nation. “At the present time, Danville serves over 36,700 residential, 4,300 commercial, and 70 industrial customers with 1,800 miles of electric lines in the City and portions of Pittsylvania, Henry and Halifax Counties,” according to the website.

According to an online service territory map, it appears that AEP utility subsidiary Appalachian Power serves much of southern Virginia, including locales such as Lynchburg and Martinsville, both of which are within an hour’s drive of Danville, Va.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.