AEP Signs Agreement to Sell Distributed Resources Business to Basalt

Core Points - American Electric Power (AEP) has agreed to sell its distributed resources business, AEP OnSite Partners, to Basalt Infrastructure Partners for approximately $315 million in cash after taxes and transaction fees, with the sale expected to close in Q3 2024 pending regulatory approvals [1][2] - The sale will allow AEP to focus on its regulated operations and strengthen its balance sheet, directing capital towards providing reliable and affordable energy to customers [2] - AEP OnSite Partners operates behind-the-meter assets and distributed energy resources, with a portfolio of over 300 megawatts across nearly 100 sites in the U.S., impacting 45 employees, all of whom Basalt plans to retain [2] Regulatory and Advisory Information - The sale is subject to regulatory approval from the Federal Energy Regulatory Commission and federal clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 [3] - RBC Capital Markets acted as AEP's financial advisor during the sale process, while Morgan Lewis & Bockius LLP served as legal counsel [3] Company Overview - AEP operates one of the largest electric transmission systems in the U.S., with over 40,000 miles of transmission lines and more than 225,000 miles of distribution lines, serving 5.6 million customers across 11 states [4] - The company has a generating capacity of approximately 29,000 megawatts, including nearly 6,000 megawatts of renewable energy, and is investing $43 billion over the next five years to enhance the electric grid's reliability and sustainability [4] - AEP aims for an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has set a goal to achieve net zero emissions by 2045 [4]