Monday, January 30, 2017

AEP completes sale of Gavin

American Electric Power has completed the sale of its General James Gavin Power Plant, one of the largest power plants along the Ohio River, and three smaller gas-fired plants.

The news release follows.

COLUMBUS, Ohio, Jan. 30, 2017 – American Electric Power (NYSE: AEP) today completed the sale of four competitive power plants to Lightstone Generation LLC, a joint venture of Blackstone (NYSE: BX) and an affiliate of ArcLight Capital Partners LLC (ArcLight), for approximately $2.1 billion. 
AEP announced Sept. 14, 2016, that it had reached an agreement to sell the plants to Lightstone Generation. The sale includes 5,200 megawatts of generation all located in the region served by the PJM Interconnection:
  • Lawrenceburg Generating Station, 1,186 MW natural gas, Lawrenceburg, Indiana
  • Waterford Energy Center, 840 MW natural gas, Waterford, Ohio
  • Darby Generating Station, 507 MW natural gas, Mount Sterling, Ohio
  • Gen. James M. Gavin Plant, 2,665 MW coal, Cheshire, Ohio
AEP will net approximately $1.2 billion in cash after taxes, repayment of debt associated with these assets and transaction fees. The company is investing the proceeds from the sale in its regulated businesses, including transmission and contracted renewable projects.
AEP recorded an after-tax gain, subject to customary true-ups, of approximately $130 million from the sale.
AEP plans to sell its coal- and gas-fired generating assets in Ohio, where the electric utility industry has been deregulated.