Ross Bowler's questions to American Electric Power Company Inc (AEP) leadership • Q4 2024
Question
Ross Bowler of Bank of America asked for specifics on the proposed data center tariffs, including the rate structure and contract terms. He also questioned the potential scale of securitization relative to the $2 billion equity need and the structural considerations for small modular reactor (SMR) projects.
Answer
President and CEO William Fehrman explained that data center tariffs are driven by incremental project costs to protect existing customers, rather than a single fixed price. EVP and CFO Trevor Mihalik stated that securitization could potentially cover a 'big chunk' of the remaining $2 billion equity need. Regarding SMRs, Fehrman emphasized that while AEP is exploring partnerships, any future agreement will be structured to protect shareholders and customers from the risks of first-of-a-kind technology.