Data Center Load Growth Impact
Q: How will data center load growth affect AEP's plans and capital needs?
A: Data centers are driving significant load growth, and AEP is prepared to accommodate this first wave with existing transmission investments. Incremental capital will be needed, but it will be manageable and doable, not requiring massive new lines. The company is developing tariffs to ensure this growth benefits all customers and keeps rates affordable. ,

Rate Design for Data Centers
Q: How will AEP structure rates to protect other customers from data center costs?
A: AEP is creating new tariffs requiring long-term commitments of 10 to 15-plus years from data centers, ensuring they pay their fair share and that growth is fair to all customers. This approach will keep rates affordable and benefits all customers. , ,

Financing Needs and Equity Issuance
Q: When does AEP anticipate needing growth equity, and what's the funding plan?
A: AEP plans to maintain its BBB credit rating and strong balance sheet. The company will consider all options to fund additional capital expenditures, including potential equity issuance as needed, to support incremental growth while defending its credit metrics. ,

Impact on Customer Bills
Q: Will infrastructure investments for data centers affect annual customer bill increases?
A: Incremental transmission investments for data centers are not expected to increase customer bills beyond the current forecasted 3% per year through 2028 and may even help keep rates stable or lower.

Load Growth Forecast Update Timing
Q: When will AEP provide updated load growth forecasts?
A: AEP plans to provide a significant update on load growth in the third-quarter earnings call or at EEI later this year.

FFO to Debt Ratio
Q: Is AEP comfortable with its FFO to debt ratio going forward?
A: AEP is within its target range for FFO to debt and expects to maintain this range, consistently defending its BBB credit rating.

CEO Search Progress
Q: Any updates on the external CEO search process?
A: The search is well underway with impressive candidates. The attributes sought remain unchanged, and the company is confident in finding the right person within the original 6 to 12 months timeframe.

Asset Sales Outlook
Q: What is the potential for additional asset sales after current processes conclude?
A: Any additional sales would be opportunistic. AEP is always open to ideas but will not preannounce plans and is focused on executing if opportunities arise.

Tax Items and PLR Ruling Impact
Q: What's the ongoing impact of the PLR ruling on tax items?
A: The PLR ruling allows AEP to include the stand-alone NOL in rate base, reducing the regulatory liability for excess ADIT. This avoids a normalization violation and will positively impact financials once adjustments are made across jurisdictions. ,

EPA Regulations Impact
Q: How is AEP challenging the EPA's proposed rulings, and what's the impact?
A: AEP is reviewing various EPA rules, including those on carbon capture and accelerated plant retirements, which could impact operations. The company aims to ensure reliability and affordability while complying with regulations and is willing to challenge rules to defend its grid and customers.

Voluntary Separation Program Costs
Q: Will the voluntary separation program have significant upfront costs?
A: The program takes effect on July 1, and this year's savings are expected to offset severance costs, with further benefits in 2025 and beyond.

Data Center Load Sensitivity Classification
Q: Should data center load be modeled like commercial or industrial sensitivity?
A: Data center load should be considered more like industrial customer sensitivity.

Indiana Generation Needs
Q: Will AEP supply generation for data centers in Indiana, and is there a generation need?
A: In vertically integrated jurisdictions like Indiana, AEP will serve the generation component for data centers and is working on RFPs to meet this demand. ,

Transmission Investment Needs
Q: Is more capital needed for transmission to support new customers near term?
A: Additional capital will be needed, but it will be manageable without requiring massive new lines. AEP can accommodate near-term growth with planned investments.

Decentralization Efforts Progress
Q: How are AEP's decentralization efforts and local P&L alignment progressing?
A: AEP is focusing on placing more resources at the local level, aligning P&L decisions closer to end decision-makers, enhancing regulatory and legislative presence in communities, and has implemented a voluntary severance to repurpose resources.

Interest Rates Impact on Financing Plan
Q: Will recent interest rate movements impact AEP's financing needs for the year?
A: The financing plan remains intact, and AEP does not anticipate significant changes due to interest rate movements.

PLR Ruling Impact on West Virginia
Q: Has West Virginia agreed to the stand-alone approach following the PLR ruling?
A: Yes, West Virginia supports the stand-alone approach, helping AEP avoid a normalization violation.

FERC Transmission Reforms Impact
Q: What impact will upcoming FERC transmission planning reforms have on AEP?
A: AEP does not anticipate significant impacts from the reforms and is already utilizing grid-enhancing technologies.

Tax Items Normalization
Q: Are the tax item benefits in the quarter onetime or recurring?
A: About half will normalize throughout the year; the other half are onetime benefits that won't recur in 2024.

Treasury PLR Ruling Actions
Q: What actions did AEP take following the PLR ruling to avoid normalization issues?
A: AEP took corrective actions based on the PLR to avoid normalization violations, including adjusting regulatory liabilities and plans to work with regulators to adjust rates appropriately.