Welcome to our dedicated page for American Electric Power news (Ticker: AEP), a resource for investors and traders seeking the latest updates and insights on American Electric Power stock.
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.
PJM Interconnection has selected multiple electric transmission projects to be jointly developed by FirstEnergy Transmission, Dominion Energy, and American Electric Power through its Transource Energy affiliate. The companies will collaborate through the newly formed Valley Link Transmission Company joint venture.
The selected projects include:
- A 260-mile 765-kilovolt transmission line and two substations between Putnam County, WV, and Frederick County, MD
- A 155-mile 765-kV transmission line and substation between Campbell County, VA, and Fauquier County, VA
- A new substation in Caroline County, VA
The projects, proposed through PJM's Regional Transmission Expansion Plan Open Window process in September 2024, aim to address reliability needs, support economic development, and meet growing power demands across Virginia, West Virginia, and Maryland. The development is in early stages, with detailed plans for permitting, regulatory approvals, and public participation expected in the coming months.
Indiana Michigan Power (I&M), an American Electric Power (AEP) company, has received approval from the Indiana Utility Regulatory Commission (IURC) for its large load tariff settlement. The settlement, jointly filed with major tech companies and consumer advocacy groups, establishes new requirements for large energy consumers, particularly data centers.
The approved order 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. A key modification requires IURC review for any reduction exceeding 20% of a large load customer's contracted peak capacity.
The settlement comes amid significant economic developments, including AWS's $11 billion data center investment near New Carlisle and Google's $2 billion facility in Fort Wayne. I&M, serving over 600,000 customers, delivered more than 85% emission-free energy in 2023 through its diverse generation portfolio including nuclear, wind, hydro, and solar sources.
American Electric Power (AEP) reported strong financial results for 2024, with GAAP earnings of $5.60 per share and operating earnings of $5.62 per share, representing a 7% increase from 2023. The company's fourth-quarter 2024 GAAP earnings were $664 million ($1.25 per share), compared to $336 million ($0.64 per share) in Q4 2023.
Commercial load grew significantly by 10.6% in 2024, driven by economic development in Indiana, Ohio, and Texas. AEP anticipates 8-9% annual total retail load growth from 2025-2027 and expects to serve over 20 gigawatts of new load by decade's end.
The company reaffirmed its 2025 operating earnings guidance of $5.75 to $5.95 per share and is executing a five-year, $54 billion capital plan. Additionally, AEP is evaluating $10 billion of potential incremental investment across its service territory and regional transmission grids.
American Electric Power (AEP) has achieved recognition on the JUST 100 list for the fifth consecutive year, maintaining its position in the top 20 for the third year running and securing second place in the utilities industry. The JUST 100, compiled by JUST Capital in partnership with CNBC, evaluates America's largest publicly traded companies based on their commitment to stakeholder priorities.
The assessment covered 940 companies, examining their performance in areas such as employee investment and community support. AEP's President and CEO Bill Fehrman emphasized the company's dedication to empowering team members and positively impacting local communities, while focusing on providing reliable and affordable energy services.
American Electric Power (AEP) has announced its Board of Directors has declared a quarterly cash dividend of $0.93 per share on the company's common stock. The dividend will be paid on March 10, 2025, to shareholders of record as of February 10, 2025.
This marks AEP's 459th consecutive quarterly dividend, maintaining an unbroken streak of quarterly dividend payments that began in July 1910, demonstrating over a century of consistent shareholder returns.
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.