American Electric Power Agree To Buy Wind Assets From Sempra

(RTTNews) - American Electric Power (AEP) Tuesday said its competitive renewable energy subsidiary has agreed to buy Sempra Renewables LLC and its 724 megawatts of operating wind generation and battery assets for about $1.056 billion

The price includes $551 million in cash, assumption of $343 million in existing project debt and $162 million in tax equity obligation. The final acquisition cost will be subject to closing and working capital adjustments.

Sempra Renewables, a subsidiary of Sempra Energy, jointly owns all or part of seven wind farms and one battery installation in seven states.

"Our long-term strategy is focused on diversifying our generation portfolio including expanding our ownership of renewable generation. We targeted $2.2 billion of capital investment in competitive, contracted renewables by 2023. Adding these high-quality renewable assets to our portfolio will achieve a significant portion of that goal this year," said Nicholas Akins, AEP chairman, president and chief executive officer.

AEP reaffirms its 2019 operating earnings guidance range of $4.00 to $4.20 per share.