AEP Texas Inc. on Jan 4 notified the Federal Energy Regulatory Commission that a commission-approved merger of two power transmission subsidiaries of American Electric Power (NYSE: AEP) closed on Dec. 31, 2016.
Said the filing: “Notice is hereby given that effective December 31, 2016, each of AEP Texas Central Company and AEP Texas North Company were merged with and into AEP Utilities, Inc., and effective December 31, 2016, AEP Utilities, Inc. changed its name to AEP Texas Inc.”
AEP Texas Central and AEP Texas North provide transmission and distribution (T&D) service to Retail Electric Providers (REPs) within portions of the ERCOT region. They provide these services to over one million meters located in nearly 400 communities in all or parts of 93 counties in the south and west Texas region.
The Texas Public Utility Commission, which approved the merger on Dec. 12, said this combination will result in three primary benefits for the companies and their customers:
- improved access to financing;
- efficiencies in financial reporting; and
- efficiencies in regulatory filings.
The merger creates a bigger financial platform from which to access financial markets, which will support the continued and increasing investment in the AEP Texas transmission and distribution assets.