AEP sells its New Mexico solar assets

American Electric Power (AEP) has completed the sale of its 50% interest in New Mexico Renewable Development (NMRD) to Exus North America Holdings. AEP nets approximately $104 million in cash after tax, transaction fees, and other customary adjustments.

The sale portfolio includes nine operating solar developments totaling 185 MW and six projects under development with an estimated output of 440 MW.

AEP began the sale process in June 2023 and received necessary regulatory approval from the Federal Energy Regulatory Commission, New Mexico regulatory approvals associated with one of NMRD’s projects and clearance under the Hart-Scott-Rodino Antitrust Improvement Act of 1976.

“This sale is another step forward on our path to simplify our business and focus on investing in our core regulated operations, and we continue to execute on our strategy to de-risk the company,” said Julie Sloat, AEP chair, president and chief executive officer, in December 2023. “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.”