AEP Partners with Amazon and X-energy to Explore Advanced Nuclear Energy in Indiana

Amazon is funding development and intends to cover facility and operating costs through a long-term power purchase contract.

Rhea-AI Summary

American Electric Power (Nasdaq: AEP) signed a joint development agreement with X-energy (Nasdaq: XE) to evaluate a 960-megawatt advanced nuclear project.

The companies are evaluating the former Indiana Michigan Power Breed Generating Station site in Sullivan County, Indiana. Amazon is supporting development through a funding agreement. The proposed facility would use X-energy's Xe-100 small modular reactors, with 12 units of 80 megawatts each. Construction and commercial operation depend on the project reaching a final investment decision and moving forward.

Amazon intends to purchase the electricity under a long-term contract covering facility and operating costs for the contract's duration. AEP says the agreements provide capital protections and financial safeguards for its customers and investors. The companies plan to work with local stakeholders and regulators as development advances.

4 points · 0 major

PositiveiHow this balance works

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAEP's joint development agreement with X-energy advances evaluation of a proposed 960-megawatt nuclear project.
• Moderate pointAmazon's funding agreement supports the project's development.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Amazon intends a long-term power purchase covering facility and operating costs throughout the contract.
• Minor pointAEP says the agreements provide capital protections and financial safeguards for customers and investors.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.The proposed project remains in feasibility evaluation; construction depends on a final investment decision and proceeding.

Key Figures

Planned project capacity: 960 MW

Planned project capacity

960 MW

Potential Indiana advanced nuclear project; 12 units at 80 MW each

Key Terms

small modular reactor, final investment decision, baseload power

3 terms

small modular reactor technical

"using X-energy's Xe-100 small modular reactor technology"

A small modular reactor is a compact nuclear power plant designed to generate electricity in smaller amounts compared to traditional reactors. It can be built in factories, then transported and assembled on-site, making it quicker and often cheaper to deploy. For investors, these reactors represent a potential source of clean energy with lower upfront costs and flexible scaling, which could influence future energy markets and infrastructure investments.

final investment decision financial

"reaches a final investment decision and moves forward with construction"

A final investment decision is the point at which a person or organization chooses to move forward with a particular project or purchase after reviewing all the necessary information and options. It is like deciding to buy a house after considering all the costs, benefits, and alternatives. This decision is important because it determines whether and when the investment will be made, impacting future financial plans and outcomes.

baseload power technical

"meet unprecedented growth in energy demand with reliable baseload power"

Baseload power is the consistent, reliable electricity output that a power plant or source can provide around the clock to meet the minimum demand on the grid, similar to a factory that runs steadily to keep essential machines humming. For investors, baseload capacity matters because it tends to produce predictable revenue, supports grid stability, and reduces the risk that production will be sidelined when demand dips, making assets and contracts tied to it easier to value.

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Joint development plan aimed at benefitting Hoosiers without raising costs for customers

• Companies working together to study the feasibility of a small modular reactor project in Sullivan County, Indiana, in coordination with state and local stakeholders
• Development and funding agreements designed to provide financial safeguards for AEP's customers and investors
• If the project moves beyond the development phase and is constructed, 960 megawatts of X-energy's advanced nuclear generation technology expected to connect directly to the grid to provide safe, reliable energy

COLUMBUS, Ohio, Oct. 19, 2026 /PRNewswire/ -- As energy demand grows, American Electric Power (Nasdaq: AEP) is exploring new ways to bring reliable power to the grid while prioritizing affordability for Indiana Michigan Power (I&M) customers and mitigating business risk. AEP today announced a joint development agreement with X-energy (Nasdaq: XE) to evaluate the feasibility of constructing a 960-megawatt (MW) advanced nuclear energy project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting the project's development through a funding agreement.

If the development project reaches a final investment decision and moves forward with construction and commercial operation, the completed facility would add safe, clean, reliable electricity to the grid using X-energy's Xe-100 small modular reactor technology. Amazon intends to purchase the power under a long-term contract, covering the costs of the facility and its operations for the duration of the contract.

This collaboration combines AEP's power generation and nuclear operating expertise, Amazon's commitment to development capital and long-term power purchase, and X-energy's advanced nuclear technology to explore the development of a clean, safe, long-term energy solution to benefit customers and foster economic development in Indiana.

"Advanced nuclear energy has the potential to provide dependable power for over half a century while supporting economic growth in our communities. With this development plan, we are working to bring together the resources to help meet unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers," said Bill Fehrman, AEP chairman, president and chief executive officer. "Our agreements with Amazon and X-energy will provide all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward."

X-energy's Xe-100 is an advanced nuclear technology designed to provide safe, reliable energy in a compact footprint. The initial project would include 12 Xe-100 units of 80 MW each, configured in groups of four, for a total of 960 MW.

The companies are evaluating the former site of I&M's Breed Generating Station in Sullivan County, Indiana, as a location for the potential project. Sullivan County recently became part of the Indiana Advanced Nuclear Ready Communities Program that supports the opportunity for an advanced nuclear project.

Indiana Governor Mike Braun said, "Indiana is building an energy future that prioritizes affordability for Hoosier families and businesses while driving economic growth. The decision by I&M/AEP, Amazon and X-energy to explore this technology in one of Indiana's counties represents the kind of innovation and investment that can deliver lasting benefits for our state. This project has the potential to create well-paying jobs in Sullivan County, strengthen our electric grid and further position Indiana as a national leader in advanced nuclear energy."

Should the project advance beyond the development phase into construction and commercial operation, it is expected to create jobs, expand the local tax base and strengthen Indiana's energy infrastructure for more than 60 years.

As the potential project moves forward, the companies are committed to working closely with local leaders, residents, regulators and other stakeholders.

"At Amazon, we are committed to serving the needs of our customers and achieving our Climate Pledge goal to be net-zero carbon across our operations by 2040," said Josh Weissman, VP of Data Center Infrastructure Capacity Delivery at Amazon. "This collaboration with AEP and X-energy would enable us to make progress on both while ensuring that Indiana's communities benefit. Together, we're looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others. This project would also create jobs and generate tax revenues to benefit Hoosier communities for decades to come."

J. Clay Sell, CEO of X-energy, said, "This effort pairs AEP's 50 years of excellence in nuclear operations with the world-class expertise of Amazon to chart a new course for Indiana's energy future, powered by our Xe-100 small modular reactor. Together, we're working to advance a clean, safe, reliable solution to meet growing energy demand and benefit Indiana and its communities for generations to come."

ABOUT AEP

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 33,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Ohio Power Company, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

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SOURCE American Electric Power

FAQ

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What are AEP and X-energy evaluating in Indiana?

AEP and X-energy are evaluating a 960-megawatt advanced nuclear project at the former Breed Generating Station site in Sullivan County, Indiana. The proposed project would include 12 Xe-100 small modular reactor units of 80 megawatts each, configured in groups of four.

What is Amazon's role in AEP and X-energy's Indiana nuclear project?

Amazon is supporting development through a funding agreement and intends to purchase the electricity under a long-term contract. That intended contract would cover the facility's costs and operations for its duration. The project must advance beyond development before construction and commercial operation can proceed.