AEP to Sell Distributed Resources Business to Basalt Infrastructure Partners for $315 Million
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American Electric Power has entered into an agreement to sell its distributed resources business, AEP OnSite Partners, to funds advised by Basalt Infrastructure Partners. 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,” added Fowke.
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.
American Electric Power Company, an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through vertically integrated utilities, transmission and distribution utilities, AEP transmission, and generation & marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, was incorporated in 1906 and is headquartered in Columbus, Ohio.
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