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American Electric Power (AEP) is one of the largest investor-owned electric utility holding companies in the United States, primarily engaged in the generation, transmission, and distribution of electricity. AEP operates through several reportable segments, including Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing . The company provides electricity to retail and wholesale customers and offers energy management services, marketing, and risk management .
- Vertically Integrated Utilities - Engages in the generation, transmission, and distribution of electricity for retail and wholesale customers through subsidiaries such as AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo, and WPCo .
- Transmission and Distribution Utilities - Focuses on the transmission and distribution of electricity through AEP Texas and OPCo, which also purchase energy and capacity to serve standard service offer customers .
- AEP Transmission Holdco - Responsible for the development, construction, and operation of transmission facilities, with investments approved by FERC and PUCT .
- Generation & Marketing - Includes contracted energy management services, marketing, risk management, retail activities, and competitive generation, primarily in ERCOT, MISO, PJM, and SPP .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Benjamin G.S. Fowke ExecutiveBoard | Interim CEO and Interim President | Board Member at Securian Financial, Energy Insurance Mutual | Former CEO of Xcel Energy; joined AEP's board in 2022; appointed Interim CEO in 2024. | |
Kate Sturgess Executive | Senior Vice President, Chief Accounting Officer, and Controller | None | Former VP and Controller at Edison International; joined AEP in 2023; Chartered Accountant with expertise in financial operations. | |
Kelly J. Ferneau Executive | Executive Vice President and Chief Nuclear Officer | None | Former Site VP at Donald C. Cook Plant; promoted to Chief Nuclear Officer in 2024; oversees nuclear operations. | |
Trevor I. Mihalik Executive | Executive Vice President and CFO | Chair of the Finance Committee for WD-40 Company | Former CFO of Sempra; joined AEP in 2025; oversees financial operations, strategy, and investor relations. | |
William J. Fehrman Executive | CEO and President | Board Member at Centuri Holdings, Inc.; Board Member at Vestas Wind Systems A/S | Former CEO of Berkshire Hathaway Energy; joined AEP in 2024; focuses on grid resiliency and generation transformation. | |
Daniel G. Stoddard Board | Director | None | Former Chief Nuclear Officer at Dominion Energy; joined AEP's board in 2023; expertise in nuclear operations and renewables. | |
Henry P. Linginfelter Board | Director | Board Member at Southwest Gas Holdings Inc. | Former EVP of Southern Company Gas; joined AEP's board in 2024; expertise in utility operations and regulatory affairs. | |
Lewis Von Thaer Board | Director | CEO of Battelle Memorial Institute; Board Chair at AmplifyBio; Board Member at Ambri, Inc.; Trustee at The Ohio State University | CEO of Battelle; joined AEP's board in 2022; expertise in technology, nuclear oversight, and cybersecurity. | |
Margaret M. McCarthy Board | Director | Director at Alignment Healthcare, First American Financial Corporation, Marriott International Inc. | Former EVP of Operations and Technology at Aetna; joined AEP's board in 2019; expertise in technology and operations. | |
Sandra Beach Lin Board | Director | Director at Avient Corporation, Trinseo Plc, Ripple Therapeutics Corporation | Retired CEO of Calisolar; joined AEP's board in 2012; brings expertise in manufacturing and operations. | |
Sara Martinez Tucker Board | Chair of the Board of Directors | Director at Service Corporation International, Nationwide Mutual Insurance Company; Trustee at University of Notre Dame | Former Under Secretary of Education; joined AEP's board in 2009; became Chair in 2024; focuses on governance and leadership transitions. |
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Given the significant increase in your capital plan to $54 billion from the prior $43 billion plan, and the potential for an additional $10 billion in transmission and generation investments, how do you plan to finance this growth while maintaining a strong balance sheet, especially considering your commitment to responsibly finance capital needs and explore asset monetization opportunities?
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Despite accelerating load growth driven by data centers, your utility ROE is moderated to 9.1% from your earlier plan; can you elaborate on the factors causing this moderation and what steps you're taking to improve your earned ROEs to match authorized levels?
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With commitments for 20 gigawatts of load additions through 2029, primarily from data center demand, what challenges do you foresee in connecting these large customers to the grid, and how are you addressing potential supply chain constraints or timely infrastructure development?
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You mentioned plans to decouple your dividend growth rate from your earnings growth rate, resulting in a lower dividend payout ratio over time in the range of 55% to 65%; how do you expect this change to impact investor sentiment, and what is the rationale behind this strategic shift?
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Given the organizational restructuring to align and simplify the structure, including bringing on an expert in transformation and eliminating management layers, can you provide more details on the expected cost savings and how these changes will enhance your ability to execute on growth opportunities?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
NRG Energy | Energy delivery services | AEP Texas | In 2024: 40% of total revenues, 37% of AR ; 2023: 41% of total revenues, 34% of AR ; 2022: 45% of total revenues, 42% of AR. |
TXU Energy | Energy delivery services | AEP Texas | In 2024: 40% of total revenues, 37% of AR ; 2023: 41% of total revenues, 34% of AR ; 2022: 45% of total revenues, 42% of AR. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Renewable Generation Facilities* | 2023 | American Electric Power (AEP) acquired and placed into service 159 MW of owned renewable generation assets—including the Rock Falls Wind Facility—with an investment of approximately $154 million, further reinforcing its renewable portfolio. Additionally, AEP sold its larger 1,365 MW unregulated renewables portfolio for $1.2 billion, with proceeds aimed at strengthening its regulated business. |
Sempra Renewables LLC | 2019 | AEP’s acquisition of Sempra Renewables LLC for approximately $1.1 billion (including $583 million in cash, $364 million of assumed debt, and recognition of $135 million in noncontrolling tax equity) brought 724 MW of wind and battery assets—including seven wind farms with long-term PPAs—into its portfolio, aligning with its strategy to expand and diversify renewable generation. |
Recent press releases and 8-K filings for AEP.
- Q1 2025 Earnings: Reported GAAP earnings of $800M ($1.50 per share) and operating earnings of $823M ($1.54 per share)
- Reaffirmed Guidance: Confirmed operating earnings guidance of $5.75–$5.95 per share with a long-term growth rate of 6–8%
- Capital Plan Execution: Advancing a $54B capital investment plan with potential incremental investments up to $10B and key equity transactions—including a forward equity issuance of $2.3B and additional funding deals of $2.82B—to support its strategy
- Market Expansion: Achieved a 12.3% increase in commercial load compared to Q1 2024
- Regulatory Progress: Noted strategic advancements in Ohio under HB15 and effective management of the OVEC impact
- The 118th Annual Meeting of Shareholders was held virtually, confirming a quorum with over 86% of shares represented and featuring the election of 12 directors.
- Shareholders ratified key proposals with strong support, including the appointment of PricewaterhouseCoopers LLP as independent auditor (≈99% vote) and the approval of executive compensation (≈96% vote).
- CEO Bill Fehrman highlighted the company's solid previous performance, provided operating earnings guidance of $5.75 to $5.95 per share for 2025, and outlined a $54 billion capital plan for transmission, distribution, and generation investments.
- AEP Texas, part of American Electric Power, announced a three-year plan to upgrade its distribution infrastructure with targeted asset replacement, tree trimming, and technological enhancements to better withstand extreme weather events.
- The plan involves an investment of $318 million to reduce outage durations, save $71 million in restoration costs, and prevent about 1.3 billion minutes of customer interruptions.
- Forward Sale Agreements Executed: On March 24, 2025, AEP entered into forward sale agreements to sell 19,607,844 shares of its common stock with an initial forward sale price of $99.756 per share.
- Underwriters’ Option Exercised: On March 25, 2025, the underwriters fully exercised their option, acquiring an additional 2,941,176 shares under the same agreement.
- Settlement Provisions: The agreements provide for physical settlement, with the company expecting settlement to occur on or before December 31, 2026.
- American Electric Power (AEP) announced the pricing of a registered underwritten common stock offering of 19,607,844 shares at $102.00 per share.
- The offering involves forward sale agreements with Citibank, Barclays, and other lead managers, with settlement expected on or before December 31, 2026.
- Underwriters have a 30-day option to purchase an additional 2,941,176 shares, potentially expanding the offering.
- AEP has initiated a $2,000,000,000 registered underwritten public offering of its common stock, with Citigroup and Barclays acting as joint book-running managers.
- The offering includes forward sale agreements in which AEP will sell shares at a price equal to that received by the underwriters, with settlement expected on or before December 31, 2026.
- Underwriters have a 30-day option to purchase an additional $300,000,000 in shares, and net proceeds from the offering may be used for general corporate purposes including debt repayment and acquisitions.
- Therace M. Risch, the Executive VP and Chief Information and Technology Officer, has resigned, with her departure effective April 1, 2025.
- The resignation was reported via a Form 8-K filing on March 17, 2025, with confirmation signed on March 20, 2025.