16 February 2006 - American Electric Power has divested its last non-utility asset with the sale of its 50 per cent stake in a power plant in Mexico for $29m.
The sale of its interest in the Bajio power plant to InterGen was 'earnings neutral', since write-downs in 2004 and 2005 had reduced the asset value.
"This transaction is significant because it completes the divestiture of assets, both international and domestic, that did not align with our strong domestic utility operations," said Michael G. Morris, AEP's chairman, president and chief executive officer. "In the last two years we've sold power plants in England, China and Mexico, domestic merchant plants, our domestic gas pipelines and storage, and other smaller holdings. The divestitures leave us with an improved balance sheet and a strategic focus on our core utility business."
Bajio is a 600 MW natural gas fired combined cycle power plant in San Luis de la Paz, a municipality in the state of Guanajuato. AEP acquired its interest in Bajio from InterGen in 2000 when the plant was under construction. Bajio began commercial operations in 2002.