AEP’s Akins: Distributed resources offer less risk, same returns
AEP’s Akins: Distributed resources offer less risk, same returns FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):Building large-scale generation like the Vogtle nuclear plant expansion represents a “significant challenge” in today’s market, American Electric Power Co. Inc.’s CEO said Aug. 16, adding that those ventures do not align with his company’s investment thesis.During a CNBC interview, Chairman, President and CEO Nick Akins said that in the wake of AEP canceling its ambitious Wind Catcher wind farm, the Ohio-headquartered company will now focus on developing smaller renewables projects. Akins additionally reaffirmed AEP’s 5% to 7% long-term growth rate through 2021.“Mad Money” host Jim Cramer asked the CEO whether a nuclear plant will ever end up being built in the United States, framing the question in light of Southern Co.’s recent announcement that subsidiary Georgia Power Co. would increase by $1.1 billion its share of Vogtle’s project costs. The new reactors are years behind schedule and billions of dollars over budget, and industry analysts are increasingly worried about Vogtle’s future viability.“I think you have to really think about it in today’s environment, where technology is going, certainly where natural gas prices are. It’s a significant challenge to build a large central-station generation facility and take on that amount of risk,” Akins told Cramer. “Obviously hats off to Southern for moving that process forward relative to nuclear, but at the same time when we look at it from an investment thesis … the magnitude of the small projects add up to much less risk for investors.“So when we look at the future in terms of investment, with distributed energy resources, where technology’s going, certainly from a transmission standpoint, those are investments that we can make that minimize risk not only to our customers, but to our shareholders as well,” Akins added.More ($): Large-scale generation like Vogtle is ‘significant challenge,’ AEP chief says