American Electric Power has completed the sale of its 50% interest in the Sweeny cogeneration plant in Texas, US to ConocoPhillips for approximately $80 million.
The Sweeny facility is a nominal 450MW cogeneration plant located within ConocoPhillips’s Sweeny refinery complex near Houston. The cogeneration plant began commercial operations in January 1998.
Proceeds from the transaction will be used to reduce short-term debt and for general corporate purposes. As a result of the sale, American Electric Power (AEP) expects to record a non-recurring pre-tax gain of approximately $44 million in the fourth quarter of 2007.