US utility American Electric Power (AEP) has announced the sale of four power plants, including the Gen. James M. Gavin 2665 MW coal-fired power plant in Ohio, US. A joint venture of private equity funds, Blackstone and ArcLight Capital Partners, will pay around US$2.17 billion for the plants.
“AEP’s long-term strategy has been to become a fully-regulated, premium energy company, focused on investment in infrastructure and the energy innovations that our customers want and need,” said AEP Chairman, President and CEO, Nicholas Akins.
“This transaction advances that strategy and reduces some of the business risks associated with operating competitive generating assets.”
The sale is expected to close in 1Q17. AEP expects to net about US$1.7 billion in case after taxes, repayment of debt associated with these assets and transaction fees. The sale is subject to various regulatory approvals, including from the Federal Energy Regulatory Commission.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/power/16092016/aep-sells-ohio-power-plants-2016-2431/