American Electric Power (AEP) has reached an agreement to divest its distributed resources business, AEP OnSite Partners (OnSite), in a deal expected to yield approximately USD 315 million in net proceeds for the electric utility.
The transaction involves the sale of OnSite to funds managed by Basalt Infrastructure Partners LLC and is contingent upon regulatory approval. It is anticipated to be finalized in the third quarter of 2024.
AEP OnSite Partners is responsible for owning, operating, and maintaining behind-the-meter assets and distributed energy resources. Its current portfolio spans over 300 MW across nearly 100 sites, with electricity generated being sold to various commercial and industrial clients including schools, municipalities, and hospitals.
In a statement regarding the sale, Ben Fowke, interim chief executive officer and president of AEP, emphasized the company's commitment to maintaining a robust balance sheet while directing capital towards regulated operations to ensure the provision of reliable and affordable energy to customers. Fowke stated, “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.”
Based in Columbus, Ohio, AEP has pledged to invest USD 43 billion over the next five years to enhance the cleanliness and reliability of the power grid. The company aims to achieve an 80% reduction in carbon dioxide emissions from 2005 levels by the end of the current decade. Currently, AEP boasts a diverse generating capacity of 29,000 MW, including nearly 6,000 MW derived from renewable sources.
