American Electric Power (AEP) agreed to sell a 19.9 percent equity interest in its Ohio and Indiana & Michigan Transmission Companies to a strategic partnership between KKR and the Public Sector Pension Investment Board (PSP Investments) for US$2.82 billion.

This strategic partnership aims to support AEP's five-year, $54 billion capital growth plan, focusing on investments in transmission, distribution, and generation projects to enhance service reliability and meet increasing energy demand.

Morgan Lewis & Bockius LLP is serving as legal counsel to AEP, with J.P. Morgan Securities LLC as the exclusive financial advisor. Simpson Thacher & Bartlett LLP is serving as legal counsel to KKR and PSP Investments.

The transaction is expected to close in the second half of 2025.