American Electric to sell 50% interest in NMRD for $115M

American Electric (AEP) has entered into an agreement to sell its 50% interest in New Mexico Renewable Development, or NMRD, to Exus North America. AEP and PNM Resources (PNM), which also owns 50% of NMRD, plan to sell the portfolio of 15 solar projects totaling 625 megawatts, or MW, to Exus for approximately $230M subject to true-up adjustments at close. AEP’s share of the sale is approximately $115M, and AEP expects to receive about $104M in cash after tax, transaction fees and other customary adjustments. The sale is expected to close in February 2024 and will not have a material impact on financial results. AEP launched the sale process for NMRD in June. The NMRD portfolio includes nine operating solar developments totaling 185 MW and six projects under development with an estimated output of 440 MW. The sale is subject to regulatory approval by the Federal Energy Regulatory Commission, New Mexico regulatory approvals associated with one of NMRD’s projects and clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.