Press release
AEP COMPLETES SALE OF UNREGULATED RENEWABLES ASSETS
COLUMBUS, Ohio, Aug. 16, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has completed the sale of its 1,365-megawatt (MW) unregulated, contracted
About this update from American Electric Power Company, Inc.
[{"type":"text","content":"COLUMBUS, Ohio, Aug. 16, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has completed the sale of its 1,365-megawatt (MW) unregulated, contracted renewables portfolio to IRG Acquisition Holdings, a partnership owned by Invenergy, CDPQ and funds managed by Blackstone Infrastructure, at an enterprise value of $1.5 billion including project debt. AEP nets approximately $1.2 billion in cash after taxes, transaction fees and other customary adjustments.\n\"This sale is part of our strategy to streamline and de-risk the business and focus on our regulated operations,\" said Julie Sloat, AEP president and chief executive officer. \"Over the next five years, we plan to invest nearly $40 billion primarily in our regulated wires and generation businesses. The proceeds from this sale will be used to continue to modernize the energy grid, shift to a more balanced generation portfolio and enhance service for our customers while strengthening our balance sheet.\"\nAEP signed an agreement to sell the assets in February 2023 and obtained approval from the Federal Energy Regulatory Commission, clearance from the Committee on Foreign Investment in the United States and approvals under applicable competition laws.\nThe sale portfolio includes 14 projects, representing 1,200 MW of wind and 165 MW of solar in 11 states. The renewable power from the projects is contracted under long-term agreements with other utilities, corporations and municipalities.\nJ.P. Morgan served as lead financial advisor and Citigroup Global Markets served as financial advisor to AEP for this transaction. Hunton Andrews Kurth LLP served as legal counsel to AEP.\nAmerican Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 225,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 5,800 megawatts of renewable energy. The company's plans include growing its regulated renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on t...