American Electric Power Company, Inc. reports regulated-utility developments across electricity generation, transmission and distribution. The company serves more than 5 million customers in 11 states and operates through utility businesses that include AEP Ohio, Indiana Michigan Power, Appalachian Power, AEP Texas and Southwestern Electric Power Co.
Recurring AEP news covers earnings, operating guidance, common stock dividends, capital investment plans, high-voltage transmission projects, customer load growth and data center-related power demand. Company updates also address operating-company leadership, state regulatory and stakeholder matters, and infrastructure planning tied to reliability and system expansion.
American Electric Power (AEP) announced the successful remarketing of $805 million in Junior Subordinated Debentures due 2024, transitioning from 3.40% to 2.031% interest. The remarketing, effective January 6, 2022, pertains to Original Debentures issued in March 2019 as part of AEP's Equity Units. Proceeds will fund a portfolio of treasury securities maturing March 2022. AEP will not receive any funds from this transaction. This plan aligns with AEP's sustainability goals, targeting net-zero emissions by 2050.
American Electric Power (AEP) has successfully completed the sale of its 48-MW Racine hydroelectric facility in Racine, Ohio, to Eagle Creek Renewable Energy. The Federal Energy Regulatory Commission approved this transaction on December 17, 2021. This sale aligns with AEP's strategy to focus more on regulated business operations, with AEP Generation Resources now retaining only the Cardinal Plant's 595-MW Unit 1, which is set for retirement in 2028. AEP aims to grow its renewable energy portfolio to about 50% of total capacity by 2030 and is committed to achieving net zero emissions by 2050.
Indiana Michigan Power, part of American Electric Power (AEP), has allocated $215,000 in economic development grants to seven organizations across Indiana and Southwest Michigan. The funding aims to enhance local economies by preparing industrial properties to attract new businesses. Key counties benefiting include St. Joseph, Adams, Noble, Delaware, Allen, Elkhart, and Berrien. The grants will support various initiatives like site readiness and infrastructure improvements. This commitment aligns with I&M’s goal to foster growth and job creation in the communities it serves.
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AEP Ohio, part of American Electric Power, has received approval from the Public Utilities Commission of Ohio (PUCO) for new electric distribution base rates. The changes will result in a monthly decrease of $0.71 for residential customers using 1,000 kilowatt-hours, though the monthly customer charge will rise to $10. AEP Ohio plans to invest in service reliability and resiliency programs, including LED streetlight upgrades and a new EV charging program. The rate changes take effect in 14 days and mark the first update since 2011.
Indiana Michigan Power (I&M), a subsidiary of American Electric Power (AEP), has submitted a rate settlement agreement with the Indiana Utility Regulatory Commission to reduce base rates for residential customers by about 5%. The reduction includes a 1% decrease in May 2022 and a more significant cut in January 2023. I&M plans to invest over $350 million in enhancing reliability by upgrading infrastructure, including replacing power lines and installing smart meters. This settlement aims to transition to renewable energy while maintaining reliable service, pending approval from the IURC.
Public Service Company of Oklahoma (PSO), a subsidiary of American Electric Power (AEP), has initiated Requests for Proposals (RFP) for renewable energy resources totaling up to 4,150 megawatts (MW). This includes up to 2,800 MW of wind and 1,350 MW of solar energy, with minimum bid requirements of 100 MW for wind and 50 MW for solar. The proposals are due by January 13, 2022, and must connect to the Southwest Power Pool. PSO serves over 562,000 customers and has a significant focus on expanding renewable generation, targeting 50% of total capacity by 2030.
American Electric Power (AEP) announced plans to invest $38 billion from 2022 to 2026, focusing on transmission, distribution, and renewable energy. AEP's 2022 operating earnings guidance ranges from $4.85 to $5.05 per share, reflecting a growth rate of 5% to 7%. The company aims to enhance its renewable generation capacity to almost 50% by 2030. AEP recently sold its Kentucky operations for $2.846 billion to further its clean energy initiatives. AEP has consistently raised dividends, marking its 446th consecutive quarterly cash dividend.
Southwestern Electric Power Company, a subsidiary of American Electric Power (Nasdaq: AEP), will redeem $275 million of its 3.55% Senior Notes, Series I, on December 3, 2021. The redemption will occur at par value, plus accrued interest, in accordance with the indenture terms. Notices for the redemption were sent out on November 3, 2021. This strategic move reflects the company's proactive management of its debt obligations.
American Electric Power (AEP) reported third-quarter 2021 earnings of $796 million, or $1.59 per share, compared to $749 million, or $1.51 per share, in Q3 2020. Revenue increased by $0.5 billion year-over-year to $4.6 billion, while year-to-date revenue rose to $12.7 billion, up $1.4 billion from 2020. Despite the growth, operating earnings saw a slight decline from $728 million in Q3 2020 to $717 million in Q3 2021. AEP has narrowed its 2021 operating earnings guidance to $4.65 to $4.75 per share, reflecting a solid performance and robust economic recovery. A quarterly dividend increase of 4 cents was also announced.