AEP Completes Sale Of Unregulated Renewables Assets

American Electric Power (AEP) has completed the previously reported 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 said that it 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.

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.