AEP to Sell $2.8 Billion Stake in Transmission Companies to KKR and Canadian Pension Fund

January 17, 2025 — COLUMBUS, OH — American Electric Power (AEP), one of the nation’s largest electric utilities, has announced plans to sell a 19.9% equity stake in two of its key transmission subsidiaries—AEP Ohio Transmission and AEP Indiana Michigan Transmission—for $2.8 billion. The buyers are private equity powerhouse KKR and the Public Sector Pension Investment Board (PSP Investments), a Canadian public pension fund.

This strategic move will help AEP offset a portion of its anticipated $5.35 billion equity financing needs through 2029. According to the company, the assets being sold represent approximately 5% of AEP’s total transmission rate base.

The sale, which is subject to regulatory approval, is expected to close in the second half of 2025.

AEP’s decision underscores a growing trend in the utility sector of monetizing infrastructure assets to free up capital for grid modernization and clean energy investments. Transmission infrastructure is seen as essential to improving reliability, accommodating new sources of energy, and connecting rural and urban markets with robust electrical service.

By partnering with institutional investors, AEP aims to maintain operational control of its grid while securing the capital necessary for long-term strategic investments. The transaction also reflects continued interest by private equity and sovereign wealth funds in the stability and long-term value of American energy infrastructure.

As Ohio and surrounding states continue to navigate the evolving energy landscape, AEP’s sale signals a shift in how legacy utilities may finance the grid of the future, balancing fiscal responsibility with the need for modernization and resilience.