Appalachian Power, a utility subsidiary of American Electric Power (NYSE: AEP) and Eagle Creek Renewable Energy, LLC have completed a transaction transferring ownership of the Reusens hydroelectric facility on the James River near Lynchburg to Eagle Creek.
Eagle Creek is a New Jersey-based firm that specializes in the development, ownership and operations of renewable energy sites, particularly hydroelectric facilities.
“Appalachian Power is focused on investments in our system that best serve our customers. The sale of Reusens to Eagle Creek allows the dam to remain part of powering the central Virginia community, while enhancing our ability to focus on our core operations in Central Virginia,” said Chris Beam, Appalachian’s President and Chief Operating Officer.
“Eagle Creek is pleased to enter the Lynchburg area and is committed to returning the Reusens Hydro to service with the same level of professional safe operation practices demonstrated by Appalachian Power for many years. We recently also took over operations of the Schoolfield Hydro facility in Danville, VA and are seeking to grow further in this area of the country,” said Bud Cherry, Eagle Creek’s Chief Executive Officer.
Eagle Creek indicated that several new jobs would be created as the facility is returned to operation providing approximately 40,000 MWH of clean, renewable hydroelectric generation. Reusens ceased generating electricity in 2011.
Appalachian had explored the sale of Reusens for several years before reaching an agreement with Eagle Creek. Both companies filed requests and received approval for the sale from the appropriate state and federal regulatory authorities.
The Reusens site was first developed in the mid-1830s as part of an early canal and lock system on the James River. The project has been generating electricity since 1903. American Gas & Electric Co.—predecessor to American Electric Power—rebuilt the plant in the late 1920s. It now includes five generating units that have a total rated capacity of 12.5 megawatts.
Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). Appalachian also operates six other hydroelectric dams in Virginia. It is a unit of American Electric Power, one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP also operates 224,000 miles of distribution lines. AEP ranks among the nation’s largest generators of electricity, owning approximately 26,000 megawatts of generating capacity in the U.S. AEP supplies 3,200 megawatts of renewable energy to customers.
Eagle Creek Renewable Energy is an owner, operator and developer of hydroelectric power projects. Eagle Creek’s projects provide clean energy to electricity consumers in North America while providing recreational opportunities and protecting historical resources and the environment. Eagle Creek was founded in 2010 to acquire, enhance, and operate small hydroelectric power facilities. Eagle Creek currently owns and operates a portfolio of approximately 180 MW of hydroelectric facilities across the United States.