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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 (Nasdaq: AEP) has agreed to sell its Kentucky operations, which include Kentucky Power and AEP Kentucky Transco, to Liberty, a subsidiary of Algonquin Power & Utilities Corp. (NYSE: AQN), for an enterprise value of $2.846 billion. The deal is expected to close in Q2 2022, pending regulatory approvals. AEP anticipates net cash proceeds of approximately $1.45 billion after taxes and fees, which will reduce equity needs for 2022. The sale is estimated to add $0.01-$0.02 to ongoing earnings in 2022.
American Electric Power (AEP) has announced a quarterly earnings conference call scheduled for 9 a.m. ET on October 28, 2021. This live webcast will include audio and visuals, available at aep.com/webcasts. AEP boasts a robust infrastructure, operating the largest electricity transmission system in the U.S., serving 5.5 million customers across 11 states. The company aims for a 50% renewable generation portfolio by 2030 and an 80% reduction in carbon emissions from 2000 levels, targeting net-zero by 2050.
The Board of Directors of American Electric Power Co. (AEP) has declared a quarterly cash dividend of 78 cents per share, marking an increase of 4 cents. This rise reflects AEP's commitment to a 5% to 7% operating earnings growth range. The dividend will be paid on Dec. 10, 2021, to shareholders of record as of Nov. 10, 2021, representing the 446th consecutive quarterly dividend. AEP aims for a substantial increase in its renewable energy portfolio, targeting 50% of its capacity by 2030.
AEP Energy Partners, a subsidiary of American Electric Power (AEP), is soliciting proposals for renewable energy projects including solar, wind, and battery energy storage in the PJM service region. They are looking for purchase agreements lasting 10, 12, or 15 years for projects commencing between 2022 and 2024. Interested parties must submit a notice of intent by October 13, 2021, with final proposals due by October 27, 2021. AEP Energy aims to bolster its retail and wholesale load, continuing its commitment to a cleaner energy future.
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.
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