American Electric Power Co., Inc. (AEP) said Thursday that its utility subsidiary AEP Southwestern Electric Power Co. or SWEPCO has signed a letter of intent to buy the transmission and distribution assets of Valley Electric Membership Corp. or VEMCO.
Valley Electric Board members have unanimously approved a voluntary dissolution of the cooperative. Pending due diligence, SWEPCO will purchase the VEMCO assets for about $94 million, and assume certain other liabilities. The company also will provide payment for the VEMCO patronage capital at closing, currently estimated at about $30 million.
A purchase agreement is expected by the end of the year, and a VEMCO membership vote to dissolve is anticipated in January or February.
For comments and feedback: editorial@rttnews.com