KKR and PSP Investments have acquired a 19.9% equity interest in American Electric Power's transmission companies for $2.82 billion, supporting AEP's $54 billion capital plan amid rising energy demand.

Target Information

American Electric Power (AEP), trading on Nasdaq under the symbol AEP, is a major player in the U.S. electric utility sector. The company operates the largest electric transmission system in the country, with over 40,000 miles of lines, and has the capacity to serve approximately 5.6 million customers across 11 states. With a commitment to investing $54 billion from 2025 to 2029, AEP is focused on enhancing service reliability and supporting the growing energy demands within its operational territories.

AEP's recent strategic investment partnerships target significant growth in energy demand, particularly in Indiana, Michigan, and Ohio, as over 20 gigawatts of new power demand is anticipated by the decade’s end. The company not only prioritizes operational excellence and safety but also emphasizes economic development and community engagement, allowing it to cater to the diverse energy needs of its vast customer base.

Industry Overview

The electric utility industry in the United States, particularly in Ohio, Indiana, and Michigan, is experiencing rapid transformation and growth. Utilities are transitioning to incorporate more renewable energy sources alongside traditional power generation, drive