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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'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.
American Electric Power (AEP) reported second-quarter 2021 earnings of $578 million or $1.16 per share, a rise from $521 million or $1.05 per share in Q2 2020. Year-to-date earnings hit $1.15 billion, exceeding last year’s $1.02 billion. Revenue for Q2 reached $3.8 billion, up from $3.5 billion in 2020. AEP’s Transmission Holding Co. boosted earnings by 34 cents per share. Management reaffirmed operating EPS guidance for 2021 between $4.55 and $4.75 per share. AEP aims for 50% renewable generation capacity by 2030, amid economic recovery signs post-pandemic.
The Board of Directors of American Electric Power Co. (AEP) announced a quarterly cash dividend of 74 cents per share on its common stock, payable on Sept. 10, 2021. Shareholders of record by August 10, 2021 will receive this dividend, marking AEP's 445th consecutive quarterly dividend since its first in July 1910. AEP serves 5.5 million customers across 11 states and aims to achieve an 80% reduction in carbon emissions by 2030, with plans to increase renewable energy capacity to 50% of its total capacity by the same year.
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