American Electric to buy Valley Electric assets

• Advocate business staff
• Published: Nov 20, 2009 - UPDATED: 1:52 p.m.

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American Electric Power utility subsidiary AEP Southwestern Electric Power Co. plans to pay $94 million for the transmission and distribution assets of Valley Electric Membership Corp., which serves 30,000 member customers in eight parishes south of Shreveport.

AEP Southwestern will also pay $30 million to co-op members at closing to cover patronage capital, the money left over after the co-op pays its bills.

“We expect that our membership will appreciate the opportunity to vote for the substantial savings in rates offered by SWEPCO and will vote positively on the dissolution when it's presented to them in early 2010,” said Tom Epperson, president and chief executive officer of the co-op.