Welcome to our dedicated page for American Electric Power Company news (Ticker: AEP), a resource for investors and traders seeking the latest updates and insights on American Electric Power Company stock.
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) is announcing plans for four new solar power plants in Indiana, set to generate power for over 200,000 homes by mid-2026. This initiative is part of I&M's commitment to diversify energy sources, including wind and battery storage, and aims to achieve net-zero carbon emissions by 2045. With an investment of approximately $1 billion in two of the facilities, I&M submitted detailed plans to state regulators. The new plants will replace coal generation as the Rockport Plant retires by 2028. I&M is also seeking further renewable energy proposals, emphasizing sustainability and community economic growth.
On March 13, 2023, American Electric Power (NASDAQ: AEP) announced the appointment of Kate Sturgess as senior vice president, controller, and chief accounting officer, effective May 9, 2023. She will succeed Joseph Buonaiuto, who is retiring on July 1 after over 21 years with the company. Sturgess previously served as vice president, controller for Edison International and has extensive experience in finance roles within large energy firms. The company recognizes her expertise in accounting, financial reporting, and regulatory services, aligning with AEP's growth objectives.
American Electric Power (AEP) has appointed Michelle Marsh as vice president of Safety and Health, effective March 4, 2023. In her new role, she will lead initiatives to enhance AEP's safety culture, reporting to Chris Beam, executive vice president of Energy Services. Marsh, who previously served as director of Safety and Health for AEP's Ohio operations, has been with the company since 2007 and holds a master's degree in occupational hygiene and safety from West Virginia University. AEP is committed to achieving Zero Harm and enhancing the well-being of its stakeholders.
Lightsource bp and AEP Energy Partners have signed a power purchase agreement for a 188 MW solar project in New Carlisle, Indiana. The Honeysuckle Solar project aims to generate enough energy annually to power 27,000 U.S. homes and reduce carbon dioxide emissions by 204,000 metric tons. It is expected to bring $30 million in revenue to the local community and create around 200 construction jobs. Construction is underway with operations expected to start in 2024. The project will support local economies and utilize low-carbon materials from U.S. manufacturers, reinforcing a commitment to sustainable energy solutions.
American Electric Power (AEP) reported fourth-quarter 2022 GAAP earnings of $384 million, or $0.75 per share, down from $539 million or $1.07 per share in Q4 2021. However, operating earnings rose to $540 million, or $1.05 per share, compared to $496 million, or $0.98 per share in the prior year. For year-end 2022, GAAP earnings decreased to $2.3 billion, while operating earnings increased to $2.6 billion. AEP reaffirms its 2023 operating earnings guidance of $5.19 to $5.39 per share, with a long-term growth rate of 6% to 7%. The company is advancing its clean energy initiatives and strategic operational management.
American Electric Power (AEP) has signed a deal to sell its 1,365 MW unregulated renewables portfolio to IRG Acquisition Holdings for an enterprise value of $1.5 billion. The transaction, expected to close in Q2 2023, will net AEP approximately $1.2 billion in cash after taxes and fees. This sale aligns with AEP's strategy to focus on regulated businesses and invest about $40 billion in new generation resources over the next five years, aiming to add 17,000 MW and enhance infrastructure. The portfolio includes 14 projects across 11 states, with long-term contracts.
American Electric Power (AEP) has scheduled a quarterly earnings conference call for Feb. 23, 2023, at 9 a.m. ET, to discuss financial results with analysts. The call will be accessible live via webcast, featuring audio and visuals. AEP, headquartered in Columbus, Ohio, delivers power to 5.5 million customers across 11 states and operates the largest electricity transmission system in the U.S. The company aims to increase its renewable generation portfolio to 50% by 2032 and target an 80% reduction in carbon emissions by 2030, committing to net-zero emissions by 2045.
On February 13, 2023, American Electric Power (AEP) and Liberty filed a new application with the Federal Energy Regulatory Commission (FERC) to expedite the sale of AEP's Kentucky operations. This follows FERC's earlier denial in December 2022, which required additional customer protection information. AEP aims to finalize the transaction by April 26, 2023. The new application assures no adverse impact on customer rates and outlines financial measures from Liberty, including a $40 million fund for volatile fuel rates. The deal promises economic benefits for eastern Kentucky, such as new jobs and local service enhancements.
American Electric Power (AEP) has appointed Emily J. Duncan as senior vice president, Federal Affairs, effective February 13, 2023. Duncan, previously vice president of Government Relations at National Grid, brings 15 years of experience managing energy policy issues.
She will oversee AEP's engagements with federal officials and regulatory agencies, succeeding Tony Kavanagh, who retires on June 30, 2023. Duncan's background includes roles at the Solar Energy Industries Association and leadership positions in various energy organizations.
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