American Electric Power : Handout (June Investor Meetings Handout 6 2025)
AEP
Published on 06/24/2025 at 00:05
New York City
June 23-24, 2025
TOTAL SHAREHOLDER RETURN
Targeted long-term EPS growth of 6%-8% and dividend yield of ~4%
OF OPERATING EARNINGS FROM TRANSMISSION1
High growth transmission supported by predictable revenues
RATE BASE CAGR
Solid rate base growth target through 2029 forecast off of 2023 base
2025-2029 CAPITAL
FORECAST
No incremental equity needed to fund this plan
TRANSMISSION MILES
Highest voltage, longest reach, strongest transmission network in the U.S.
DISTRIBUTION MILES
One of the largest distribution systems in the U.S.
REGULATED ELECTRIC
UTILITY2
Pure-play, integrated platform
TOTAL GENERATION
Diverse generation fleet As of March 31, 2025
CUSTOMERS
Throughout 11 states
Committed to financial strength supported by robust growth, customer service through innovation and achieving positive outcomes with regulatory integrity.
3 • June Investor Meetings
1 Includes AEP Transmission Holdco and transmission investments in AEP operating companies. Calculated using 2025E transmission earnings of $3.20 as a percentage of the 2025 guidance midpoint of $5.85.
2 Calculated using 2025E Generation & Marketing earnings of $0.27 as a percentage of the 2025 operating earnings guidance midpoint of $5.85.
FINANCIAL COMMITMENTS
including 2025 guidance of $5.75-$5.95, LT growth rate of 6%-8% and FFO/Debt targeted range of 14%-15%
765 kV Transmission Line
SUPPORTED BY GROWTH
through 2029 with up to $10B of incremental investments; minimal direct exposure to tariffs of approximately 0.3%
through the $2.3B equity sale and the $2.82B minority interest transmission transaction
through the end of the decade fueled by data center and industrial demand backed by customer commitments; represents approximately 55% increase compared to 2024 system
AWS announced $11B Data Center investment in New Carlisle, IN
I&M filed for regulatory approval to acquire 870 MW Natural Gas Plant in Oregon, OH
wide summer peak load
UNDERPINNED BY REGULATORY AND LEGISLATIVE SUCCESSES
with I&M's regulatory filing to acquire the 870 MW Oregon natural gas plant and continued execution on IRPs and RFPs
sets a solid foundation for 2025 while working with stakeholders on current rate cases to achieve a positive and balanced outcome
including Ohio, Oklahoma and Texas to support high-growth footprint
4 • June Investor Meetings
1 Assumes the continuation of the DRP of up to $100M per year.
2 Management's load growth expectations are based on underlying economic and demographic trends. Commercial load, driven by growth in energy intensive subsectors such as AI driven data center demand, is anticipated to be the largest component of retail load growth. Forecasted data center demand growth is supported by letters of agreement or energy service agreements with existing and future customers, which are subject to certain terms and conditions.
Regulatory Win: Finance Strategy
Regulatory Wins: Cost Recovery
Regulatory Wins: Infrastructure
June 2025: Successfully closed on the minority interest transmission transaction on 6/5/2025
February 2025: PJM awarded AEP affiliates with $1.7B in transmission upgrades incremental to the $54B base plan, with $1.1B advanced through Transource Energy and $600M advanced through AEP Transcos
April 2025: AEP Texas System Resiliency Plan settlement was approved supporting the implementation of $318M in grid resiliency over 3 years
April 2025: AEP Texas was approved for an ERCOT Permian Basin 765 kV transmission project, incremental to the $54B base plan
June 2025: PSO received approval to acquire Green
Country, a 795 MW natural gas generation facility
June 2025: SWEPCO Texas System Resiliency Plan settlement was approved for $175M of investments to be spent over 3-4 years
5 • June Investor Meetings
February 2025: KPCo's appeal to recover the annual transmission expense of $14M was approved
March 2025: PSO's 2023 fuel cost of $554M was deemed prudent; new fuel factor was approved and provided recovery of $141M deferred fuel balance as of 3/31/2025
April 2025: SWEPCO Texas reached a settlement approving 2022 and 2023 fuel and purchase power costs of $529M
May 2025: AEP Ohio secured approval for customer contracts that utilize
fuel cell technology
Regulatory Wins: Customer Affordability
February 2025: I&M's large load tariff filed in Indiana was approved
March 2025: APCo's large load tariff filed in West Virginia was approved
March 2025: KPCo's large load tariff was approved
March 2025: APCo successfully obtained Virginia legislation to pursue
securitization
June 2025: KPCo completed securitization bond issuance on 6/12/2025
Disclaimer
AEP - American Electric Power Company Inc. published this content on June 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 24, 2025 at 04:04 UTC.