AEP’s Bruised Ego Gets in the Way of Business
AEP has been looking to off-load its power plants that were not included in the subsidy deal. Houston-based utility Dynegy is interested in purchasing them. Simple supply and demand, right?
Only problem: Dynegy isn’t invited to the bid party.
The power company saw what was going on in Ohio, and suggested it could provide the requisite power for billions less than the FirstEnergy and AEP deals would cost. In fact, Dynegy acted as an outspoken opponent and even offered two “superior alternatives” to the bailouts.
Aside from the move being what Dynegy’s CEO calls “an ego thing,” the exclusion could have serious implications for shareholders. If AEP is limiting bids, that could discount the value of the shares’ worth and hurt the overall company revenue. Pretty sure that’s illegal.
But it’s AEP’s bid party, and they’ll cry if they want to.
|