AEP recognised a $16.6 million loss in the fourth quarter of 2002 associated with its decision to exit the Nordic trading business, AEP said today. The spokesman could not confirm the size of the Nordic trading book or other associated costs at the time of going to press.
The Ohio-based utility only entered the Nordic power market after its London-based European trading arm, AEP Energy Services, assumed operation of Enron's offices in Oslo and Stockholm in January 2002. With the purchase AEP gained an established team of 35 former employees of Enron Nordic Energy, covering power and weather derivatives in Norway, Sweden, Finland, Denmark and Germany. The team was headed by Thor Lien.