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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.
American Electric Power (AEP) has issued a request for proposal (RFP) to procure coal for its generating stations from multiple regions, including the Central Appalachian Basin, Illinois Basin, Powder River Basin, and Northern Appalachian Basin. The RFP seeks proposals for various terms within the last quarter of 2021 and the first half of 2022, as well as calendar years 2022 and 2023. Interested parties must submit their proposals by 5 p.m. ET on September 29, 2021. AEP is enhancing its sustainable energy initiatives while maintaining a robust electricity supply for 5.5 million customers across 11 states.
Neal Gerber Eisenberg (NGE) has joined the U.S. Environmental Protection Agency’s Green Power Partnership, committing to source 100% of its energy needs from green power. The firm will utilize 600,000 kWh annually from wind Renewable Energy Credits (RECs) supplied by AEP Energy. This initiative aims to reduce greenhouse gas emissions significantly. NGE's green power consumption is equivalent to the annual electricity use of approximately 56 average American homes. NGE has been recognized for its sustainability efforts and is a leader in the legal industry's green movement.
American Electric Power's (AEP) 287-MW Maverick Wind Energy Center in Oklahoma has commenced commercial operations, contributing to the North Central Energy Facilities. This project, alongside the 199-MW Sundance (operational since April 2021) and the upcoming 999-MW Traverse, will provide 1,485 MW of clean energy. Collectively, these projects are expected to save AEP's customers $3 billion over 30 years. AEP plans to increase its renewable resources to 50% of total capacity by 2030, with a goal of achieving net zero emissions by 2050.
AEP Energy has signed a long-term renewable energy purchase agreement for the second phase of the Mammoth solar project in Indiana, adding 360 MWdc to the existing 1.65 GWdc project. This phase follows a previous agreement in April 2021 for 480 MWdc. Construction is expected to start in 2022, with commercial operations slated for 2024. AEP Energy aims to enhance its renewable energy portfolio, capitalizing on community support and potential economic benefits for the region, including energy independence for Indiana.
American Electric Power (AEP) has launched a Sustainable Finance Framework to issue green, social, and sustainability bonds and loans. This initiative links AEP's finance strategy with its commitments to clean energy and social impact. Proceeds will support projects like renewable energy development and enhancing energy efficiency. The framework aligns with eight United Nations Sustainable Development Goals, showcasing AEP's focus on creating positive environmental and social changes. The company aims for a significant increase in renewable energy capacity by 2030.
American Electric Power (AEP) has promoted David R. Ball to vice president of Energy Delivery Operations, effective August 7, 2021. Previously the managing director of Transmissions Operations, Ball oversees vital operational aspects across four states. His promotion is viewed as a strategic move to enhance AEP's efforts in building a modern and efficient energy grid. AEP operates the largest electricity transmission system in the U.S. and aims to increase its renewable generation to 50% of total capacity by 2030, with a commitment to net-zero emissions by 2050.
American Electric Power (AEP) has appointed Phillip Ulrich as the new senior vice president and chief human resources officer effective August 2, 2021. Ulrich will oversee various HR functions to align with AEP's business strategy and enhance company culture for its 16,800 employees. His experience spans 26 years, most recently at Flex, LTD. AEP aims to transform its workforce while focusing on sustainability, aiming for an 80% reduction in carbon emissions by 2030 and a net-zero goal by 2050, further emphasizing its commitment to diversity and community engagement.
The Electric Highway Coalition (EHC), initiated by American Electric Power (AEP), has doubled its membership to 14 companies, enhancing long-distance electric vehicle (EV) travel through a network of DC fast charging stations. With members serving over 60 million customers across 29 states, EHC aims to establish efficient charging solutions while avoiding duplication. AEP plans to replace its fleet with EVs by 2030 and is committed to expanding its renewable generation portfolio to 50% by 2030. The coalition promotes seamless travel and electrification benefits through various programs.
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