Press release
AEP SIGNS AGREEMENT TO SELL UNREGULATED RENEWABLES ASSETS
COLUMBUS, Ohio, Feb. 22, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has entered into an agreement to sell its 1,365-megawatt (MW) unregulated,
About this update from American Electric Power Company, Inc.
[{"type":"text","content":"COLUMBUS, Ohio, Feb. 22, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has entered into an agreement to sell 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. The sale is expected to close in the second quarter of 2023. At the closing, AEP expects to net approximately $1.2 billion in cash after taxes, transaction fees and other customary adjustments.\n\"We're committed to de-risking the company and prioritizing investments in our core regulated businesses. The proceeds from the sale will be directed to the significant pipeline of opportunities we have to enhance service for customers across our footprint and advance our clean energy transition,\" said Julie Sloat, AEP president and chief executive officer.\nAs previously announced, AEP plans to invest approximately $40 billion over the next five years in its regulated wires and generation business with a focus on adding 17,000 MW of new generation resources and more resilient, efficient transmission and distribution infrastructure to serve customers.\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 is serving as lead financial advisor and Citigroup Global Markets is serving as financial advisor to AEP for this transaction. Hunton Andrews Kurth LLP is serving as legal counsel to AEP.\nAEP announced its plan to sell the assets in February 2022 and launched a competitive bidding process in August. The sale is subject to satisfaction of customary closing conditions, including regulatory approval by the Federal Energy Regulatory Commission, clearance from the Committee on Foreign Investment in the United States and approval under applicable competition laws.\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 ...