AEP Closes on Transmission Investment Strategic Partnership with KKR and PSP Investments
Columbus, Ohio, June 5, 2025 – American Electric Power (AEP), KKR, and PSP Investments have successfully finalized a transaction first announced in January 2025. KKR and PSP Investments are set to jointly invest $2.82 billion, securing a 19.9% equity interest in AEP’s transmission companies in Ohio and Indiana Michigan. This investment marks a strategic collaboration aimed at enhancing the infrastructure necessary to support AEP’s significant growth plans over the next five years.
The transaction, representing approximately 5% of AEP’s total transmission rate base, will be instrumental in amplifying AEP’s capacity to meet the burgeoning demand for electricity. With a projected increase of more than 20 gigawatts of new power demand by the decade’s end, and a marked interest from nearly 600 new and existing customers accounting for approximately 180 gigawatts of energy demand, AEP is poised to further expand its transmission systems.
The strategic partnership allows for substantial infrastructure development across AEP’s Indiana, Michigan, and Ohio service areas, ensuring continuity in operations while maximizing efficiency in delivering reliable power. Bill Fehrman, AEP president and CEO, voiced enthusiasm for the collaboration, highlighting AEP’s leadership in the transmission sector as a magnet for partners like KKR and PSP Investments. “Our customers and communities stand to gain from this initial $54 billion capital plan that promises to fortify our infrastructure and enhance service reliability,” he remarked.
KKR’s managing director, Kathleen Lawler, expressed honor in collaborating with AEP. She stated, “We are thrilled to support AEP’s modernization of its transmission systems, striving to meet increased customer demand and bolster grid reliability.” The partnership with PSP Investments further strengthens this initiative as they work collaboratively to expedite critical infrastructure in rapidly growing territories.
Michael Rosenfeld, managing director of Infrastructure Investments at PSP Investments, echoed similar sentiments, emphasizing their commitment to advancing AEP’s ambitious growth strategy. “We are excited to participate in this venture alongside KKR, reinforcing AEP as an industry leader in transmission,” he noted.
About American Electric Power
American Electric Power (AEP) is dedicated to delivering reliable, affordable power to improve customers’ lives. AEP plans to invest $54 billion from 2025 through 2029 in an effort to upgrade services and meet the evolving energy demands of its communities. With a workforce of nearly 16,000 employees, AEP operates the nation’s largest electric transmission system, encompassing 40,000 line miles, alongside more than 225,000 miles of distribution lines serving approximately 5.6 million customers across 11 states.
AEP’s expansive portfolio includes generating approximately 29,000 megawatts of diverse energy capacity, underscoring its role as one of the country’s largest electricity producers. The company’s commitment extends to safety, operational excellence, and stakeholder value generation, supported by economic development and community engagement across its service territories.
About KKR
KKR stands as a premier global investment firm providing alternative asset management, along with capital markets and insurance solutions. With a disciplined investment approach, KKR focuses on generating attractive returns by fostering growth across its portfolio companies and communities. The firm sponsors investment funds in private equity, credit, and real assets, while its insurance subsidiaries provide retirement, life, and reinsurance products via Global Atlantic Financial Group.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors, manages a diversified portfolio including capital markets, private equity, real estate, and infrastructure. Established in 1999, PSP Investments handles assets transferred by the Government of Canada for federal pension plans, operating from its headquarters in Ottawa and other offices worldwide.
This strategic partnership is a pivotal step for AEP, further solidifying its leadership in the electric transmission industry and underlining its commitment to enhancing infrastructure to support burgeoning energy needs efficiently and reliably.
