AES To Sell 30% Indirect Equity Interest In AES Ohio To CDPQ For About $546 Mln

(RTTNews) - Energy company AES Corp. (AES) announced Tuesday that it reached an agreement to sell a 30% indirect equity interest in AES Ohio to CDPQ, an investment group, for around $546 million.

The deal is expected to close in the first half of 2025, subject to customary regulatory approvals.

The company noted that the agreement expands upon its existing partnership with CDPQ at AES Indiana and creates a similar ownership structure for the two utilities.

With this sale, AES will have achieved over $2.7 billion of its $3.5 billion asset sale target for 2023 through 2027.

AES Ohio plans to invest more than $1.5 billion from 2024 through 2027 to improve system reliability, through extensive investment in transmission infrastructure and grid modernization improvements.

AES Ohio recently reached a settlement agreement for Phase 2 of its Smart Grid program, which, if approved by the Public Utilities Commission of Ohio, will enable investment of more than $240 million over a four-year period to deploy smart technology that will support impactful system improvements.

As a result of these needed investments, AES Ohio anticipates compound annual rate base growth in the mid-teens through 2027.