AICPA SOC Service Organizations - Certrec

Strategic Solar Shift: AEP and PNM Resources Hand Over 625 MW Portfolio to Exus in $230 Million Deal



In a move American Electric Power (AEP) called simplifying its business, it announced an agreement this week to sell its 50 percent interest in the 625 MW portfolio of solar projects under New Mexico Renewable Development, LLC (NMRD), turning them over to Exus North America Holdings, LLC.

PNM Resources, which also owned 50 percent of NMRD, will follow suit, putting the whole solar suite into the hands of Exus for approximately $230 million. The Ohio-based AEP will pull in approximately $115 million of this – likely around $104 million in cash after taxes, transaction fees and other adjustments if the sale closes as expected in February 2024.

“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,” Julie Sloat, AEP chair, president and CEO, said. “Earlier this year, 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.”

NMRD consists of nine operating solar developments amounting to 185 MW and another six currently under development to produce 440 MW. The sale will be subject to regulatory approval by both the Federal Energy Regulatory Commission and New Mexico regulators, and will need clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.