Appalachian Power Agrees to Sell Historic Reusens Hydroelectric Plant

The history of the Reusens Power Plant goes back to the mid-1800s and the operation of the early canal and lock system on the James River used primarily for commercial and agriculture shipments. It includes five generating units which have a total rated capacity of 12.5 megawatts.

(Story by John Shepelwich)

LYNCHBURG, Va. – Appalachian Power has agreed to the sale of its Reusens hydroelectric facility on the James River near Lynchburg. The plant will be sold to a growing New Jersey-based firm that specializes in renewable energy, particularly the operations of hydroelectric facilities.

Appalachian and Eagle Creek Renewable Energy of Morristown, N.J., will make required filings with state and federal regulatory agencies that must provide approval before a sale and transfer can be completed. The closing is expected to occur by early 2017.

As part of its continuing evaluation of generation assets, Appalachian Power considered the possibility of the sale of this power project for several years. The company recently reached an agreement with Eagle Creek, which owns and operates 49 hydroelectric facilities in the U.S.

The history of the Reusens Power Plant goes back to the mid-1800s and the operation of the early canal and lock system on the James River used primarily for commercial and agriculture shipments. The Reusens dam has been generating electricity since 1903.

American Gas & Electric Co. — predecessor to American Electric Power — rebuilt the plant in the late 1920s. It includes five generating units which have a total rated capacity of 12.5 megawatts (MW).

Over the last few years, generating units at the hydro facility were taken out of service due to a variety of equipment failures. Because less costly options for providing replacement energy to its customers were available, Appalachian elected not to refurbish or replace those units. Eagle Creek intends to refurbish or replace the five units and return Reusens to full operation once it becomes the owner.

Appalachian Power has introduced representatives of Eagle Creek to Lynchburg area officials, has stressed that the sale will have no negative effect on its ability to serve its customers in Virginia, and that no jobs will be lost as a result. The buyer, in fact, indicates that some new jobs will probably be created as the facility is updated and put back into operation.

The sale will not affect any of the company’s other hydroelectric plants in operation in Virginia and does not indicate a change in the growth of new renewable energy resources as part of its generation portfolio. Appalachian’s 2016 Integrated Resource Plan calls for the addition of more than 2,000 MW of wind and solar resources by 2030.

Eagle Creek Renewable Energy, LLC is an owner, operator and developer of hydroelectric generation facilities and provides safe, clean, economic renewable energy to electricity consumers in the U.S.  Eagle Creek currently owns and operates in excess of 130 MW from 49 facilities.  It was founded in 2010 and is privately owned. For additional information, visit www.eaglecreekre.com.