KKR and PSP Investments have agreed to acquire a 19.9% stake in AEP's transmission companies in Ohio and Indiana & Michigan for $2.82 billion, aimed at enhancing grid reliability and supporting growth initiatives.

Target Information

American Electric Power (AEP), established in 1906, is one of the largest electric utility providers in the United States, serving approximately 5.6 million retail and wholesale customers across 11 states. AEP has established a significant presence in Ohio, Indiana, and Michigan, where it operates its rapidly growing transmission companies. This strategic investment by KKR and PSP Investments aims to enhance AEP's capabilities in meeting the surging customer demand for reliable electricity and to improve grid resilience.

AEP is classified as a fully regulated electric utility, recognized for its commitment to providing safe, reliable, and affordable energy. The investment will help AEP to continue its robust service, supporting its five-year capital plan dedicated to expanding and modernizing its transmission infrastructure in response to load growth influenced chiefly by a solid American manufacturing sector.

Industry Overview in the U.S.

The electric utility industry in the United States is undergoing transformative changes driven by advances in technology, regulatory reforms, and shifts in energy consumption patterns. As demand for electricity contin