COLUMBUS, Ohio, May 13, 2024
/PRNewswire/ -- American Electric Power (Nasdaq: AEP) has entered
into an agreement to sell its distributed resources business, AEP
OnSite Partners ("OnSite"), to funds advised by Basalt
Infrastructure Partners LLC. AEP expects to net approximately
$315 million in cash after taxes and
transaction fees, subject to customary closing adjustments. The
sale is expected to close in the third quarter of 2024, pending
regulatory approvals.
"I'm grateful to the AEP OnSite Partners team and thank them for
their contributions to AEP over the past decade. This sale will
allow the distributed resources business and its valued employees
to continue to succeed," said Ben
Fowke, AEP interim chief executive officer and president.
"AEP is focused on a strong balance sheet as we direct capital to
our regulated operations to provide reliable, affordable energy to
our customers. The proceeds from the sale will be used to support
our financing plan as we make these investments to benefit
customers and deliver value to all of our stakeholders."
AEP OnSite Partners owns, operates and maintains
behind-the-meter assets and distributed energy resources and sells
the output to schools, municipalities, hospitals and other
commercial and industrial customers. Their portfolio consists of
more than 300 megawatts of projects at almost 100 sites across
the U.S. The sale directly impacts 45 employees, which
includes AEP OnSite Partners employees and other AEP employees who
support the business. Basalt plans to retain all 45 employees.
The sale is subject to regulatory approval from the Federal
Energy Regulatory Commission and federal clearance pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.
RBC Capital Markets served as AEP's financial advisor for the
sale process. Morgan Lewis &
Bockius LLP served as legal counsel to AEP.
At American Electric Power, based in Columbus, Ohio, we understand that our
customers and communities depend on safe, reliable and affordable
power. Our nearly 17,000 employees operate and maintain more than
40,000 miles of transmission lines, the nation's largest electric
transmission system, and more than 225,000 miles of distribution
lines to deliver power to 5.6 million customers in 11 states. AEP
also is one of the nation's largest electricity producers with
approximately 29,000 megawatts of diverse generating capacity,
including nearly 6,000 megawatts of renewable energy. AEP is
investing $43 billion over the next
five years to make the electric grid cleaner and more reliable. We
are on track to reach an 80% reduction in carbon dioxide emissions
from 2005 levels by 2030 and have a goal to achieve net zero by
2045. AEP is recognized consistently for its focus on
sustainability, community engagement 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