American Electric Power, the largest electricity generator in the US, has completed the sale of its 25.2% share of the South Texas Project nuclear plant to its co-owners Texas Genco and CPS Energy, for approximately $314 million.
The company, which owns more than 36,000 megawatts of generating capacity in the US, said that it will use the proceeds from the sale to reduce capitalization at its local subsidiary, AEP Texas Central Company.
The South Texas Project (STP) is a 2,500-megawatt nuclear plant located in Matagorda County, Texas, about 90 miles southwest of Houston. American Electric Power (AEP)’s 25.2% share of the plant equated to approximately 630 megawatts.
In the deal, Texas Genco purchased 13.2% of STP for around $164 million to take its total share to 44%, and CPS Energy purchased 12% of STP for around $150 million to enhance its stake to 40%. The City of Austin continues to own 16% of the plant.