AEP launched the sale process for New Mexico Renewables in June. (Source: Shutterstock)
American Electric Power (AEP) entered an agreement to sell its 50% interest in New Mexico Renewable Development to Exus North America Holdings, according to a Dec. 26 press release.
Combined, AEP and utilities business PNM Resources, which also owns 50% of New Mexico Renewables, plan to sell 15 solar projects totaling 625 megawatts (MW) to Exus for approximately $230 million. AEP’s share of the proceeds is approximately $115 million. The deal is expected to close in February 2024, the release stated.
AEP launched the sale process for New Mexico Renewables in June. The portfolio includes nine operating solar developments totaling 185 MW and six projects under development with an estimated output of 440 MW.
“Earlier this year, we completed the $1.5 billion sale of other parts of our contracted renewables business,” said Julie Sloat, AEP’s chair, president and CEO. “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.”
KeyBanc Capital Markets is serving as financial adviser and Foley & Lardner LLP is serving as legal counsel to AEP and PNM Resources.
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