AEP sells four power plants to Blackstone’s and ArcLight’s Lightstone Generation

Lightstone Generation LLC, a joint venture between Blackstone and ArcLight Capital Partners LLC, has acquired four power plants from American Electric Power. The price of the acquisition was about $2.1 billion. The sale includes Waterford Energy Center in Waterford, Ohio and Lawrenceburg Generating Station in Lawrenceburg, Indiana.


COLUMBUS, Ohio, Jan. 30, 2017 /PRNewswire/ — 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.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP also operates 224,000 miles of distribution lines. AEP ranks among the nation’s largest generators of electricity, owning approximately 31,000 megawatts of generating capacity in the U.S. AEP also supplies 3,200 megawatts of renewable energy to customers. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.