American Electric Power (AEP) completed its transaction with KKR and PSP Investments wherein KKR and PSP will jointly invest $2.82 billion for a 19.9 percent stake in AEP’s Ohio and Indiana Michigan transmission companies. By the end of the decade, more than 20 gigawatts of new power demand is anticipaed across AEP’s footprint. This partnership will enable ARP to further develop its infrastructure to support the growth opportunities in AEP’s Indiana, Michigan and Ohio service territories. \"AEP built the nation’s largest transmission grid, and our position as an industry leader in the transmission space enabled us to attract world-class partners like KKR and PSP Investments that have a history of investing in and developing vital infrastructure projects,\" Bill Fehrman, AEP president and CEO, said. \"Our customers and communities will benefit from the initial investment, which supports the execution of our five-year, $54 billion capital plan, and this strategic partnership will facilitate ongoing investment in the critical infrastructure needed to support our customers and enhance reliability in Indiana, Michigan and Ohio.\" AEP is investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of its communities. \"We are honored that AEP has entrusted us to support their efforts to modernize their transmission systems in order to better meet increased customer demand and further enhance grid reliability,\" Kathleen Lawler, managing director, KKR, said. \"We look forward to working closely alongside PSP Investments to bolster AEP’s commitment to providing communities with reliable, affordable power.\" AEP maintains the nation’s largest electric transmission system with 40,000-line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP is also one of the nation’s largest electricity producers with approximately 29,000 megawatts of generating capacity \"PSP Investments is pleased to strategically partner with AEP to support its ambitious growth plan that will reinforce its position as an industry leader in the transmission space,\" Michael Rosenfeld, managing director, Infrastructure Investments, PSP Investments, said. \"We look forward to participating in the development of critical transmission infrastructure in some of AEP’s fastest-growing service territories and are excited to embark on this journey alongside KKR.\"

AEP finalizes investment deal with KKR, PSP Investments

American Electric Power (AEP) completed a $2.82 billion investment deal with KKR and PSP Investments, securing a 19.9% stake in AEP’s Ohio and Indiana Michigan transmission companies. The partnership aims to support AEP’s $54 billion capital plan (2025–2029) and expand infrastructure to meet projected 20 gigawatts of new power demand across its service territories. The deal highlights AEP’s leadership in transmission infrastructure and aligns with its commitment to grid reliability and community energy needs.