AEP selling its distributed resource business to Basalt Infrastructure Partners
American Electric Power (AEP) is selling its distributed resources business, AEP OnSite Partners, to funds advised by Basalt Infrastructure Partners.
AEP OnSite Partners operates behind-the-meter assets and distributed energy resources and sells the output to schools, municipalities, hospitals, and other commercial and industrial customers. Its portfolio consists of more than 300 megawatts of projects at almost 100 sites across the U.S. Basalt plans to retain all 45 employees that support this business.
“I’m grateful to the AEP OnSite Partners team and thank them for their contributions to AEP over the past decade. This sale will allow the distributed resources business and its valued employees to continue to succeed,” Ben Fowke, AEP interim CEO and president, said. “AEP is focused on a strong balance sheet as we direct capital to our regulated operations to provide reliable, affordable energy to our customers. 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.”
AEP expects to net approximately $315 million in cash from the deal. The transaction is expected to close in the third quarter of 2024, pending various regulatory approvals, including from the Federal Energy Regulatory Commission and clearance pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
RBC Capital Markets served as AEP’s financial advisor for the sale process. Morgan Lewis & Bockius LLP served as legal counsel to AEP.
