American Electric Power Co. Inc. on Jan. 30 said it has completely divested four Midwest generating plants totaling 5,200 MW to a joint venture formed by private equity firms Blackstone Group LP and ArcLight Capital Partners LLC for $2.1 billion.
Under the deal inked with Lightstone Generation LLC in September 2016, AEP sold the 1,186-MW Lawrenceburg Generating Station in Lawrenceburg, Ind.; the 840-MW Waterford Energy Facility in Waterford, Ohio; the 507-MW Darby Electric Generating Station in Mount Sterling, Ohio; and the 2,665-MW Gen J. M. Gavin coal plant in Cheshire, Ohio.
At deal close, AEP posted an after-tax gain of about $130 million, subject to customary true-ups. The company will also net about $1.2 billion in cash after taxes, debt repayment and transaction fees. Proceeds from the sale will be allotted to AEP's regulated business and contracted renewable projects, according to a company news release.