AEP Closes on Transmission Investment Strategic Partnership with KKR and PSP Investments

Core Insights - American Electric Power (AEP) has completed a $2.82 billion transaction with KKR and PSP Investments for a 19.9% equity interest in AEP's Ohio and Indiana Michigan transmission companies, representing approximately 5% of AEP's total transmission rate base [1][6] Group 1: Investment and Growth - The partnership is expected to support infrastructure development to meet over 20 gigawatts of new power demand anticipated by the end of the decade across AEP's service areas [2] - AEP is experiencing interest from nearly 600 new and existing customers representing almost 180 gigawatts of energy demand looking to connect to its transmission system [2] - The investment aligns with AEP's five-year, $54 billion capital plan aimed at enhancing service and reliability for customers [3][6] Group 2: Company Overview - AEP operates the largest electric transmission system in the U.S., with 40,000 line miles and over 225,000 miles of distribution lines, serving 5.6 million customers across 11 states [4] - AEP is also one of the largest electricity producers in the nation, with approximately 29,000 megawatts of diverse generating capacity [4] Group 3: Strategic Partnerships - KKR and PSP Investments are recognized for their history of investing in vital infrastructure projects, enhancing AEP's ability to modernize its transmission systems [3] - The partnership is expected to bolster AEP's commitment to providing reliable and affordable power to communities [3]