AEP formalizes $1.5 billion in sale of unregulated wind farms

The sale of some of its unregulated an contracted renewable energy sites by American Electric Power, a deal worth $1.5 billion, involved some wind farms in Texas, Colorado and Kansas.

They were among 14 such holdings sold to IRG Acquisition Holdings, a partnership owned by Invenergy, CDPQ and funds managed by Blackstone Infrastructure. AEP netted about $1.2 billion in cash after taxes, tranaction fees and other customary adjustments, according to the announcement by AEP.

None of the AEP wind farms are located in Oklahoma, but AEP is the parent company of Public Service Company of Oklahoma. It is also the owner of the $2 billion 998-megawatt Traverse Wind Energy Center, which opened last year and was described as the largest wind farm in North America to be built at once and put into commerial operation. It consists of 356 turbines located in Blaine and Custer Counties.

“This sale is part of our strategy to streamline and de-risk the business and focus on our regulated operations,” said Julie Sloat, AEP president and chief executive officer.

“Over the next five years, we plan to invest nearly $40 billion primarily in our regulated wires and generation businesses. The proceeds from this sale will be used to continue to modernize the energy grid, shift to a more balanced generation portfolio and enhance service for our customers while strengthening our balance sheet.”

AEP signed an agreement to sell the assets in February 2023 and obtained approval from the Federal Energy Regulatory Commission, clearance from the Committee on Foreign Investment in the United States and approvals under applicable competition laws.

The sale portfolio includes 14 projects, representing 1,200 MW of wind and 165 MW of solar in 11 states. The renewable power from the projects is contracted under long-term agreements with other utilities, corporations and municipalities.

The three wind farms in Texas are the Santa Rita East, Trent Mesa and Desert Sky.

Cedar Creek in Colorado was the lone renewable project in that state to be sold by AEP. It is near the town of Grover in northern Colorado’s Weld County.

The project in Kansas is the Flat Ridge III which opened in 2021. It is located in Kingman County in the southern part of the state.

The following is the complete list: