Americn Electric Stock Price, News & Analysis

American Electric Power (AEP) is pursuing grants from the U.S. Department of Energy for Small Modular Reactor (SMR) development at two sites. Through Indiana Michigan Power, AEP is seeking $50 million in partnership with TVA and GE Hitachi for the Rockport Plant site in Indiana, utilizing GEH BWRX-300 technology capable of generating 300MW. Additionally, through Appalachian Power, AEP has applied for a $35 million grant for the Joshua Falls site in Virginia.

The projects are part of the USDOE's Generation III+ Small Modular Reactor Program, offering up to $900 million in grants. Both sites have received local support, with Spencer County officials approving an ordinance for new generation at Rockport. The Virginia project saw over 100 attendees at a public meeting in December 2024.

AEP estimates commercial SMR use is at least a decade away. The company emphasizes SMRs' potential to provide reliable, clean energy 24/7, with units capable of generating up to 500MW depending on design.

American Electric Power (AEP) has announced a strategic partnership where KKR and PSP Investments will acquire a 19.9% equity interest in AEP's Ohio and Indiana & Michigan Transmission Companies for $2.82 billion. The transaction, valued at 30.3 times LTM P/E, represents approximately 5% of AEP's total transmission rate base.

The proceeds will support AEP's five-year, $54 billion capital growth plan and offset a significant portion of the company's $5.35 billion equity financing needs through 2029. The deal is expected to be immediately accretive to AEP's earnings and credit profile upon closing, which is anticipated in the second half of 2025.

The transaction requires FERC approval and CFIUS clearance. Customers and employees will not experience changes, and AEP will maintain controlling interest in the transmission assets while continuing to operate and maintain the Transcos' infrastructure.

American Electric Power (AEP) has appointed Trevor I. Mihalik as executive vice president and chief financial officer, effective January 20, 2024. Mihalik, who brings over 34 years of energy industry experience, will succeed Chuck Zebula, who will serve as senior advisor to the CEO before retiring in March.

Mihalik joins AEP from Sempra, where he most recently served as group president overseeing San Diego Gas and Electric and Southern California Gas Company subsidiaries. His responsibilities at AEP will include accounting and tax, treasury and risk, corporate planning and budgeting, investor relations, procurement, supply chain, strategy, and corporate regulatory functions.

The appointment comes as AEP focuses on improving operating performance and executing its multibillion-dollar capital plan to meet increasing energy demand. Mihalik's experience includes leadership roles at Iberdrola Renewables Holdings, Chevron Natural Gas, and Bridgeline Holdings.

SWEPCO, an AEP subsidiary, announced several new generation projects pending regulatory approval. The key developments include a 450-MW natural gas plant in Hallsville, Texas, expected to operate by 2027, and the Welsh Natural Gas Conversion Project (1,053-MW) converting coal-fired units to natural gas by 2027-2028.

Additionally, three renewable projects are under construction: the 200-MW Diversion Wind Farm in Texas (operational December 2024), the 598-MW Wagon Wheel Wind Facility in Oklahoma (operational December 2025), and the 72.5-MW Rocking R Solar Facility in Louisiana. SWEPCO has also secured a short-term capacity agreement with a Texas natural gas facility.

Indiana Michigan Power (I&M) has filed a joint settlement with multiple stakeholders including AWS, Microsoft, Google, and consumer advocacy groups. The agreement addresses power demand increases from recently announced data centers in northeast Indiana, including AWS's $11 billion and Google's $2 billion investments.

The settlement requires new large load customers to make long-term financial commitments proportional to their size, ensuring costs are recovered from these customers rather than existing ones. AWS, Microsoft, and Google will each contribute $500,000 annually for five years to support low-income Hoosiers through the Indiana Community Action Association.

American Electric Power (AEP) has announced a major initiative to deploy up to 1 gigawatt (GW) of Bloom Energy solid oxide fuel cells, primarily targeting data centers and large energy consumers. This represents the largest utility fuel cell technology initiative in the United States. The company expects 20% annual commercial load growth over the next three years, driven by data center development.

The fuel cells will provide power to customers while AEP develops the necessary grid infrastructure. Projects will initially use natural gas, with potential for hydrogen fuel in the future. All costs will be covered by large customers under special contracts. The company is currently finalizing initial customer agreements and discussing additional projects with other customers.

American Electric Power (AEP) has announced a major initiative to deploy up to 1 gigawatt (GW) of Bloom Energy solid oxide fuel cells to support data centers and large energy users. This represents the largest utility fuel cell technology initiative in the nation. The company expects 20% annual commercial load growth over the next three years, primarily driven by data center development.

The fuel cells will initially operate on natural gas, with potential for future hydrogen use. All project costs will be covered by large customers under special contracts. AEP is currently finalizing the first customer agreements and discussing additional projects with other customers while developing long-term grid infrastructure.

American Electric Power (AEP) reported third-quarter 2024 operating earnings of $985.4 million or $1.85 per share, up from $923.8 million or $1.77 per share in Q3 2023. Revenue increased to $5.4 billion from $5.3 billion. The company narrowed its 2024 operating earnings guidance to $5.58-$5.68 per share, maintaining the $5.63 midpoint. AEP announced a new long-term growth rate of 6-8% and expanded its five-year capital plan to $54 billion. Commercial load increased over 10% year-over-year, with projections showing 20% annual growth over the next three years. The company has secured agreements for 20 gigawatts of commercial and industrial load additions through 2030.

American Electric Power (AEP) announced significant leadership and organizational changes aimed at empowering local operations and driving growth. Key changes include: initiating a search for a new president of AEP Transmission, eliminating the executive VP of Regulatory role, transitioning power plant management to operating company presidents, and several executive role changes. Chris Beam, executive VP of Energy Services, will retire in February 2025. Kelly Ferneau has been promoted to executive VP and chief nuclear officer, while Shane Lies moves to executive VP of Projects and Services. The restructuring aims to streamline operations, shift decision-making closer to customers, and enhance stakeholder value.