American Electric Power has completed the sale of its 1365 MW unregulated, contracted renewables portfolio to IRG Acquisition Holdings, a partnership owned by CDPQ, Invenergy and funds managed by Blackstone Infrastructure, at an enterprise value of $1.5 billion including project debt. To AEP that is approximately $1.2 bn 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 CEO. "Over the next five years, we plan to invest nearly $40 bn, primarily in our regulated wires and generation businesses. The proceeds from this sale will be used to continue to modernise 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 1200 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.