American Electric Power (AEP) said Thursday it has completed a transaction with KKR (KKR) and PSP Investments, which together purchased a 19.9% equity interest in the company's Ohio and Indiana Michigan transmission businesses for $2.82 billion.

The 19.9% minority stake accounts for nearly 5% of the company's overall transmission rate base, and proceeds from the transaction will help fund American Electric Power's $54 billion capital investment plan over the next five years, the company said.

American Electric Power expects over 20 gigawatt of new demand by 2030 and growing interest from 600 customers, the company said, adding that the partnership with KKR and PSP will support infrastructure expansion to meet its growth in Indiana, Michigan, and Ohio.

American Electric Power said it will continue to operate and maintain the transmission facilities.

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