AEP to sell transmission JV stakes
American Electric Power Co. will sell its stakes in two transmission joint ventures.
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USA, Columbus: American Electric Power Co. will sell its stakes in two transmission joint ventures.
The leaders of American Electric Power Co. have decided to sell its stakes in two transmission joint ventures in order to streamline the company and focus on its regulated businesses. Executives are still examining their options for a third venture as they continue to focus the utility on its regulated businesses.
President and CEO Julie Sloat said they were exploring the idea of offloading their Prairie Wind Transmission and Pioneer Transmission holdings in Kansas and Indiana, respectively, as well as their stake in a larger transmission portfolio under the Transource name. They also have struck a deal to sell AEP’s unregulated renewables group for $1.5 B and are looking to sell several other subsidiaries. Transource deal is still being considered but Prairie Wind and Pioneer are now on the market.
Combined, AEP has invested $123 M in the two ventures’ property, plant and equipment. By comparison, Transource has assets in six states. More than half of AEP’s $430 M in investments in that venture have been made in Missouri.
Sloat said the transmission investment sales are happening primarily because she wants AEP to focus on its core business and be able to tell a cleaner story to investors.
“We don’t need to engage in asset sales to make the balance sheet work. What we need to do is make sure we’re being as efficient as possible,” Sloat told analysts. “I want to make sure that every dollar we do put to work is one that makes sense for our customers but also is something that makes sense for our service territories.”
Source: T&D World
#American Electric Power Co.#joint venture#stakes#transmission