The US-based power utility American Electric Power (AEP) has agreed to sell four thermal power plants totalling 5,200 MW for around US$2.17bn to a consortium of Blackstone and ArcLight Capital Partners.
The sale agreement includes the gas-fired power plants of Lawrenceburg (1,186 MW, Indiana), Waterford Energy Center (840 MW, Ohio), Darby (507 MW, Ohio), and the James M. Gavin coal-fired power facility (2,665 MW, Ohio). After the deal, AEP will still operate 2.7 GW of power generating assets in Ohio.
This sale is in line with AEP’s long-term strategy aiming is to become a fully regulated energy company focused on investments in infrastructures. It is expected to close in the first quarter of 2017. The sale is subject to approvals from concerned regulatory bodies (FERC and the Indiana Utility Regulatory Commission). AEP expects to receive net US$1.2bn in cash after taxes, repayment of debt associated with these assets and transaction fees.
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