Group and ArcLight are
acquiring four Midwest power plants from subsidiaries of American Electric Power (AEP)
for $2.17 billion, a deal the market sees as a symbol of an
industry in flux, but one thriving with opportunity too.
The four plants in question, which have a combined 5.2 GW in
output, are Lawrenceburg Generating Station, in Indiana, and
the Waterford Energy Center, Darby Generating Station, and the
James M. Gavin Plant, all in Ohio.
AEP – a public utility
holding company – announced back in January 2015
that it was exploring strategic alternatives for the power
plants, including a potential sale. The transaction will now
be funded by a combination of equity from each sponsor and
fully committed debt financing. It is expected to close in
the first quarter of 2017.
The deal is noteworthy for both its size and scale.
"It’s a very large deal and from...