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.

SOURCE American Electric Power