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American Electric Power Company, Inc. (AEP), headquartered in Columbus, Ohio, stands as one of the largest electric utilities in the United States. Delivering electricity to more than 5 million customers across 11 states, AEP is integral to the nation's power infrastructure. The company owns nearly 38,000 megawatts of generating capacity and the largest electricity transmission system in the U.S., boasting a 39,000-mile network. AEP’s operations span various subsidiaries including AEP Ohio, AEP Texas, Appalachian Power, Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company.
In terms of energy generation, about 42% of AEP's capacity is derived from coal, 27% from natural gas, 21% from renewable sources and hydro, 8% from nuclear, and 2% from demand response. The company is actively enhancing its generation portfolio by focusing on renewable energy to meet growing customer demands sustainably. AEP is also committed to reducing its carbon footprint, targeting an 80% reduction in CO2 emissions from 2005 levels by 2030, and achieving net zero by 2045.
AEP is investing $43 billion over the next five years to modernize the grid and ensure reliable, affordable power. Their strategic initiatives include de-risking the business, controlling costs, and fostering economic growth through energy infrastructure investments.
American Electric Power's financial performance has been robust despite economic challenges. The company reaffirmed its 2024 operating earnings guidance range of $5.53 to $5.73 per share, reflecting a solid long-term growth rate of 6% to 7%, and a targeted FFO/Debt ratio of 14% to 15%.
Recently, AEP has engaged in significant business transactions, including the sale of its distributed resources business, AEP OnSite Partners, and the completion of its sale of New Mexico Renewable Development assets, netting considerable capital to support its strategic goals. Furthermore, AEP’s emphasis on sustainability and community engagement continues to earn the company recognition and strengthen its market position.
Indiana Michigan Power (I&M), part of American Electric Power (AEP), has proposed a plan to add over 2,000 megawatts (MW) of wind and solar generation by 2028. This initiative aims to ensure reliable, sustainable energy while transitioning away from coal dependence. The plan, rooted in I&M's Integrated Resource Plan, includes a request for proposals for 800 MW of wind and 500 MW of solar. By 2028, the company intends to retire its coal-fueled Rockport Plant and introduce natural gas peaking units. The transition supports AEP's goal of net-zero carbon emissions by 2050.
American Electric Power (AEP) has appointed Michael Granata as vice president of Safety & Health, starting Feb. 5, 2022. Granata replaces Natalie McCord, who is retiring. Michael brings extensive experience, having served as managing director of Safety & Health since 2018. AEP, based in Columbus, Ohio, operates one of the largest electricity transmission systems in the U.S., serving 5.5 million customers. The company aims to increase its renewable energy capacity to 50% by 2030 and achieve net zero carbon emissions by 2050.
The Board of Directors of American Electric Power (AEP) declared a quarterly cash dividend of 78 cents per share on January 18, 2022. This dividend will be payable on March 10, 2022, to shareholders on record as of February 10, 2022, marking AEP's 447th consecutive quarterly dividend. AEP has consistently paid dividends since July 1910. The company aims to grow its renewable energy capacity to about 50% of its total by 2030 while targeting an 80% reduction in carbon dioxide emissions from 2000 levels by the same year.
American Electric Power (AEP) announced the successful remarketing of $805 million in Junior Subordinated Debentures due 2024, transitioning from 3.40% to 2.031% interest. The remarketing, effective January 6, 2022, pertains to Original Debentures issued in March 2019 as part of AEP's Equity Units. Proceeds will fund a portfolio of treasury securities maturing March 2022. AEP will not receive any funds from this transaction. This plan aligns with AEP's sustainability goals, targeting net-zero emissions by 2050.
American Electric Power (AEP) has successfully completed the sale of its 48-MW Racine hydroelectric facility in Racine, Ohio, to Eagle Creek Renewable Energy. The Federal Energy Regulatory Commission approved this transaction on December 17, 2021. This sale aligns with AEP's strategy to focus more on regulated business operations, with AEP Generation Resources now retaining only the Cardinal Plant's 595-MW Unit 1, which is set for retirement in 2028. AEP aims to grow its renewable energy portfolio to about 50% of total capacity by 2030 and is committed to achieving net zero emissions by 2050.
Indiana Michigan Power, part of American Electric Power (AEP), has allocated $215,000 in economic development grants to seven organizations across Indiana and Southwest Michigan. The funding aims to enhance local economies by preparing industrial properties to attract new businesses. Key counties benefiting include St. Joseph, Adams, Noble, Delaware, Allen, Elkhart, and Berrien. The grants will support various initiatives like site readiness and infrastructure improvements. This commitment aligns with I&M’s goal to foster growth and job creation in the communities it serves.
AEP Ohio, part of American Electric Power, has received approval from the Public Utilities Commission of Ohio (PUCO) for new electric distribution base rates. The changes will result in a monthly decrease of $0.71 for residential customers using 1,000 kilowatt-hours, though the monthly customer charge will rise to $10. AEP Ohio plans to invest in service reliability and resiliency programs, including LED streetlight upgrades and a new EV charging program. The rate changes take effect in 14 days and mark the first update since 2011.
Indiana Michigan Power (I&M), a subsidiary of American Electric Power (AEP), has submitted a rate settlement agreement with the Indiana Utility Regulatory Commission to reduce base rates for residential customers by about 5%. The reduction includes a 1% decrease in May 2022 and a more significant cut in January 2023. I&M plans to invest over $350 million in enhancing reliability by upgrading infrastructure, including replacing power lines and installing smart meters. This settlement aims to transition to renewable energy while maintaining reliable service, pending approval from the IURC.
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