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.
American Electric Power (Nasdaq: AEP) has appointed Stacey Burbure as vice president of FERC and RTO Strategy and Policy, effective Feb. 4, 2023. Burbure, who previously served as senior counsel for transmission policy and rates, takes over from Amanda Conner, who is now chief of staff to Julie Sloat, AEP's president and CEO. With nearly 20 years of experience, Burbure will lead AEP's regulatory efforts at the Federal Energy Regulatory Commission and Regional Transmission Organizations. Her role will focus on developing the electric system as the company invests in infrastructure and new generation sources to provide safe and reliable electricity.
On January 24, 2023, American Electric Power (AEP) announced a quarterly cash dividend of 83 cents per share on its common stock. This dividend, marking the company's 451st consecutive quarterly payment, will be payable on March 10, 2023, to shareholders of record by February 10, 2023. AEP has consistently provided cash dividends since July 1910. The company operates the largest electricity transmission system in the U.S., serving 5.5 million customers across 11 states, and has plans to increase its renewable generation portfolio to 50% by 2032 while aiming for an 80% reduction in carbon dioxide emissions by 2030.
AEP Ohio has filed an Electric Security Plan (ESP) application with the Public Utilities Commission of Ohio, committing to invest $2.2 billion in reliability-focused projects over six years. The plan includes upgrading aging equipment, improving circuits with frequent outages, and building new lines and substations. Residential energy efficiency programs and a Senior Discount Program are also proposed. If approved, customers may see a 2% average monthly increase, approximately $4 annually. The proposal aims to enhance electric grid reliability amid growing demands.
AEP Energy Partners, a subsidiary of American Electric Power (AEP), is seeking proposals for renewable energy projects in the PJM and ERCOT regions. The company aims to secure long-term renewable energy purchase agreements, with terms ranging from 5 to 15 years, to support the growing retail and wholesale loads in Texas and Ohio. Notice of intent to bid is due by December 30, 2022, with proposal packages required by January 13, 2023. The initiative aligns with AEP's commitment to a clean energy future and expanding its renewable energy capacity.
On November 17, 2022, Public Service Company of Oklahoma (PSO) submitted a proposal to the Oklahoma Corporation Commission for a fuel-free power plan involving a $2.47 billion investment in renewable energy. The plan includes three wind farms and three solar facilities that will generate 995.5 megawatts of energy, aiming to stabilize electricity costs for customers. The average residential monthly bill is projected to rise by $3.48 (2.6%). This initiative aims to protect against market volatility in natural gas prices and is expected to save customers $1 billion in fuel costs over 30 years.
American Electric Power (AEP) reaffirmed its 2022 operating earnings guidance of $4.97 to $5.07 per share, with a midpoint of $5.02, and projected 2023 earnings of $5.19 to $5.39. The company unveiled a $40 billion five-year capital plan, focusing on wires and renewables. AEP aims for nearly 15,700 MW of renewable generation and energy storage by 2032, supporting a 2045 net zero target. They raised quarterly dividends to $0.83 per share, marking 450 consecutive quarterly cash dividends. AEP expects to sell its Kentucky operations by January 2023 and complete renewables sales by mid-2023.
American Electric Power (Nasdaq: AEP) has appointed Ann P. Kelly as the new executive vice president and chief financial officer (CFO), effective November 30, 2022. Kelly, who previously served as CFO at AmeriGas Propane, will oversee AEP's accounting, treasury, risk, corporate planning, budgeting, and investor relations. She will report to Nicholas K. Akins, AEP's CEO, until January 1, when Julie Sloat transitions to CEO. AEP operates the largest electricity transmission system in the U.S. and aims for significant renewable energy growth by 2030.
FAQ
What is the current stock price of American Electric Power Company (AEP)?
What is the market cap of American Electric Power Company (AEP)?
What services does American Electric Power (AEP) provide?
What are AEP's key business units?
How is AEP investing in renewable energy?
What is AEP's financial outlook for 2024?
What recent business transactions has AEP completed?
Where is AEP headquartered?
How does AEP contribute to sustainability?
What is AEP's market position in the energy industry?
How does AEP support economic growth in its service areas?
What recognition has AEP received for its efforts?
