AEP Sells Renewables to Blackstone, Others for $1.5 Billion (1)

American Electric Power Co. agreed to sell a portfolio of renewable-energy plants to buyers including Blackstone-managed funds for $1.5 billion to help fund its ambitious grid overhaul.

Wall Street has pushed utilities to sell their commercial power assets and focus on investing in projects within their regulated service territories, where they can fetch reliable returns and the costs can be billed to customers.

AEP, which owns utilities that stretch from Ohio to Texas, said the total sale price included project debt. It expects to net $1.2 billion in cash with the deal expected to close at the end of ...