Retail electricity company American Electric Power (AEP) agreed to sell its 50% interest in energy firm New Mexico Renewable Development (NMRD), to Exus North America Holdings, an investment and asset management firm, on Tuesday.
The company said AEP along with electricity and electric services provider PNM Resources, which owns the other 50% of NMRD, are on terms to sell the portfolio of 15 solar projects, summing 625 megawatts to Exus for about $230 million, subject to adjustments at close.
PNM Resources is an investor-owned energy holding company based in Albuquerque, New Mexico.
AEP also said, the company’s share of the sale is close to $115 million and it is expecting to receive about $104 million in cash after tax, transaction fees, and other customary adjustments. The deal is expected to close in February 2024, the firm added.
Julie Sloat, chief executive at AEP stated, “Earlier this year, we completed the $1.5 billion sale of other parts of our contracted renewables business, the proceeds from these sales are strengthening our balance sheet and supporting our continued efforts to create an energy system that benefits customers by providing safe, reliable and affordable electricity.”
Over a month ago, Sloat mentioned in the third-quarter earnings, “AEP is taking action to de-risk and simplify our business.” He also said, “We also are continuing our strategic review of the Transource Energy joint venture, which we expect to complete this year.”
AEP is an energy provider that is based in Columbus, Ohio is on a mission to replace its entire fleet of cars and light-duty trucks with electric vehicle alternatives by 2030 and convert medium- and heavy-duty vehicles as electric or hybrid models become available.
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