AEP Completes Sale of AEP OnSite Partners

Rhea-AI Summary

American Electric Power (Nasdaq: AEP) has successfully completed the sale of its distributed resources business, OnSite Partners, to funds advised by Basalt Infrastructure Partners The transaction, which was initially announced in May 2024, has resulted in AEP netting approximately $318 million in cash after accounting for taxes, transaction fees, and other customary adjustments.

The sale received all necessary regulatory approvals, including clearance from the Federal Energy Regulatory Commission and federal clearance under the Hart-Scott-Rodino Antitrust Improvement Act of 1976. This divestment marks a significant move for AEP in streamlining its business operations.

Positive

• AEP netted approximately $318 million in cash from the sale
• Successfully completed the divestment of OnSite Partners business
• Received all necessary regulatory approvals for the transaction

Negative

• None.

COLUMBUS, Ohio, Sept. 30, 2024 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has completed the sale of its distributed resources business, OnSite Partners, to funds advised by Basalt Infrastructure Partners LLC. AEP nets approximately $318 million in cash after taxes, transaction fees and other customary adjustments.

The sales agreement was announced in May 2024. The sale received necessary regulatory approval from the Federal Energy Regulatory Commission and federal clearance pursuant to the Hart-Scott-Rodino Antitrust Improvement Act of 1976.

About 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 16,000 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 nearly 29,000 megawatts of diverse generating capacity, including approximately 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

FAQ

What business did AEP sell in September 2024?

AEP sold its distributed resources business, OnSite Partners, to funds advised by Basalt Infrastructure Partners in September 2024.

How much did AEP net from the sale of OnSite Partners?

AEP netted approximately $318 million in cash from the sale of OnSite Partners, after taxes, transaction fees, and other customary adjustments.

When was the sale of AEP OnSite Partners initially announced?

The sale of AEP OnSite Partners was initially announced in May 2024.

What regulatory approvals did AEP receive for the OnSite Partners sale?

AEP received regulatory approval from the Federal Energy Regulatory Commission and federal clearance pursuant to the Hart-Scott-Rodino Antitrust Improvement Act of 1976 for the OnSite Partners sale.