AES Corp. sellis 30% equity in AES Ohio to CDPQ

AES Corporation reached an agreement to sell a 30% indirect equity interest in AES Ohio to CDPQ, a global investment group, for approximately $546M, with closing expected in the first half of 2025. This agreement expands upon AES’ existing partnership with CDPQ at AES Indiana and creates a similar ownership structure for the two utilities, with no change in management or operational control of AES Ohio. AES Ohio plans to invest more than $1.5B 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 $240M over a four-year period to deploy smart technology. As a result of these investments, AES Ohio anticipates compound annual rate base growth in the mid-teens through 2027. Additionally, AES Ohio sees potential for incremental investment to support growing data center demand. As part of this agreement, CDPQ is committed to funding its pro rata share of AES Ohio’s near-term capital requirements to support AES Ohio’s growth plans. This transaction is expected to close in the first half of 2025. With this sale, AES will have achieved over $2.7B of its $3.5B asset sale target for 2023 through 2027. This agreement is subject to customary regulatory approvals, including from the Public Utilities Commission of Ohio, the Federal Energy Regulatory Commission and the Committee on Foreign Investments in the U.S.