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.
"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."
AEP 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.
The 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.
J.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.
American 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 track to
reach an 80% reduction in carbon dioxide emissions from 2005 levels
by 2030 and has committed to achieving net zero by 2045. AEP is
recognized consistently for its focus on sustainability, community
engagement, and diversity, equity and inclusion. AEP's family of
companies includes utilities AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in
Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. For more
information, visit aep.com.
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SOURCE American Electric Power