- AEP NAMES STURGESS SVP, CONTROLLER AND CHIEF ACCOUNTING OFFICER
Mar 13, 2023
COLUMBUS, Ohio, March 13, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has named Kate Sturgess senior vice president, controller and chief accounting officer effective May 9.
In this role, she will be responsible for all aspects of accounting, financial reporting and regulatory accounting services. Sturgess will report to Ann Kelly, executive vice president and chief financial officer. She will succeed Joseph Buonaiuto, senior vice president, controller and chief accounting officer, who will retire July 1 after more than 21 years with the company.
"We thank Joe for his leadership and significant contributions to AEP's finance team throughout the years and wish him the best in his well-deserved retirement," said Kelly. "Kate's depth of accounting knowledge and experience working in the finance organizations of large, regulated energy companies, paired with her commitment to continuous improvement and developing finance talent, make her a strong choice for this role. We welcome Kate's insights and knowledge as we continue to advance our strategic growth objectives."
Sturgess most recently was vice president, Controller for Edison International and its subsidiary Southern California Edison. Prior to that role, she held various finance leadership positions at National Grid USA, a subsidiary of National Grid plc., including vice president, U.S. controller. Before National Grid, Sturgess was a senior manager with PricewaterhouseCoopers LLP in New York and London, where she specialized in audits of publicly traded companies in the power and utilities sector. She began her career in 2006 as an associate with the company.
Sturgess received her bachelor's degree in history from the University of Sheffield in England and is a chartered accountant from the Institute of Chartered Accountants in England and Wales.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com.
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SOURCE American Electric Power
- AEP NAMES MARSH VICE PRESIDENT OF SAFETY AND HEALTH
Mar 1, 2023
COLUMBUS, Ohio, March 1, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has named Michelle Marsh vice president, Safety and Health, effective March 4.
In this role, she will be responsible for leading the development and implementation of strategic initiatives designed to strengthen AEP's safety culture and performance. She will report to Chris Beam, executive vice president, Energy Services.
"At AEP, the safety and well-being of our customers, employees and business partners is a core value," said Beam. "Michelle's vast background and breadth of knowledge in workplace safety and health make her a confident choice to lead our efforts to achieve Zero Harm. She's also passionate about ensuring our colleagues return home in the same or better condition than when they came to work. Michelle's combination of experience and care for our team and customers will be influential in shaping our continued safety and health transformation."
Marsh most recently was director, Safety and Health, for AEP's operations in Ohio. She first joined AEP in 2007 as an environmental, safety and health consultant and has held roles of increasing responsibility in the Safety and Health and Transmission organizations. Prior to joining the company, Marsh was a senior industrial hygienist and supervisor with an Oregon-based semiconductor manufacturing facility.
Marsh received her bachelor's degree in secondary education and her master's degree in occupational hygiene and safety from West Virginia University.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com.
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SOURCE American Electric Power
- Lightsource bp and AEP Energy Partners Sign Power Contract for 188 Megawatt Solar Farm in Indiana
Feb 23, 2023
Estimated to abate 204,000 metric tons of carbon dioxide (CO2) emissions each year, equivalent to annual emissions from about 44,000 fuel burning cars Will stimulate local economy by bringing an estimated $30 million in new revenue to the community, along with creating approximately 200 construction jobs
SOUTH BEND, Ind., February 23, 2023--(BUSINESS WIRE)--Global solar leader Lightsource bp and AEP Energy Partners (AEPEP), a subsidiary of American Electric Power (Nasdaq: AEP) and one of the largest wholesale energy suppliers in the country, have signed a power purchase agreement (PPA) for a 188 megawatt (dc) solar project located in New Carlisle about 10 miles west of South Bend, Indiana.
Once complete, the Honeysuckle Solar project will generate enough clean energy annually to power 27,000 U.S. homes and will reduce carbon dioxide emissions by 204,000 metric tons each year.
"AEP Energy Partners is proud to provide customers with integrated, carbon-free energy that fulfills their sustainability goals, delivers long-term price stability, and benefits the environment. Our partnership with Lightsource bp demonstrates our commitment to the development of new renewable resources that both empower local communities and support a cleaner, brighter energy future," said Greg Hall, Executive Vice President & Chief Commercial Officer, AEP.
Lightsource bp will finance, build, own and operate the facility and sell the solar energy it generates to AEP Energy Partners under a long-term PPA. Construction of the project has been initiated on site, with commercial operation starting in 2024. South Bend based Inovateus Solar LLC is the construction contractor for the facility, with a focus on utilizing local labor for the mechanical, electrical and civil work on site.
"This power purchase agreement is a great example of how energy buyers with sustainability goals such as AEP Energy Partners can work with us to spur the buildout of new solar projects that will improve the health and energy security of communities across America while helping strengthen local economies. As the owner and operator of the Honeysuckle solar farm, we look forward to bringing economic and environmental benefits to the region, along with fostering community partnerships," said Kevin Smith, Lightsource bp’s CEO of the Americas.
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Economic benefits
The Honeysuckle solar farm will:
Create approximately 200 direct construction jobs, primarily local, in addition to hundreds of U.S. jobs across the supply chain Support domestic manufacturers and low carbon products, with ultra-low carbon solar panels from First Solar, smart solar trackers from Array Technologies and steel from Nucor Bring $250 million of new, privately funded renewable energy infrastructure to Indiana Provide an estimated $30 million boost to the local community over the project life – additional funding for local schools and other services without a tax increase on its citizens Deliver a $3 million economic development payment to St. Joseph County to be allocated by county officials as they determine best serves the community.
Protecting the environment
Lightsource bp and AEP Energy Partners have a common mission to deliver affordable, reliable electricity to communities, while protecting the environment. While the primary purpose of solar is to reduce carbon emissions from electricity generation in order to mitigate climate change, Lightsource bp extends the benefits of solar energy further through their Responsible Solar approach. The goal is to build multiuse solar projects on which clean energy generation, agriculture, habitat and biodiversity enhancement share the land under and around the solar panels.
As part of this Responsible Solar approach, an action plan is underway for the Honeysuckle Solar project to achieve biodiversity net gains and foster pollinator habitat – ensuring that Honeysuckle will be a pollinator friendly solar farm.
Learn more about multiuse solar.
About Lightsource bp
Lightsource bp is a global leader in the development and management of solar energy and energy storage projects and a 50:50 joint venture with bp. For more than a decade, Lightsource bp has delivered affordable, safe and sustainable energy to businesses and communities around the world. Their team includes nearly 1,000 industry experts, working in 19 countries, providing full scope development for projects, from initial site selection, financing and permitting to long-term management of solar projects and energy sales to their customers. Lightsource bp in the U.S. is headquartered in San Francisco with development offices in Denver, Austin, Philadelphia and Atlanta and staff in more than 25 states. Since 2019, the team has brought into operation or initiated construction on 3.2 gigawatts of U.S. solar projects with capital costs of nearly $4 billion across 11 states in America. For more information visit www.lightsourcebp.com/us.
About AEP and AEP Energy Partners
American Electric Power (Nasdaq: AEP) subsidiaries AEP Renewables, AEP Energy, OnSite Partners, and AEP Energy Partners, deliver a wide array of innovative competitive energy solutions nationwide. As one of the largest wholesale suppliers in the country, AEP Energy Partners specializes in offering customized wholesale power supply products based on the specific needs of customers’ electric systems within ERCOT, MISO, PJM and SPP. AEP Energy Partners also sells renewable energy through long-term contracts with utilities, electric cooperatives, municipalities and corporate customers. With a commitment to a clean energy future, AEP’s competitive businesses currently own over 1,500 megawatts of wind, solar and energy storage on both a utility scale and distributed scale basis. Solving energy problems for customers, AEP OnSite Partners and its competitive affiliates own and operate over 75 behind-the-meter projects in 22 different states and have an active development pipeline across the U.S. As a competitive retail electricity and natural gas supplier, AEP Energy serves over 700,000 residential and business customers in 28 service territories in six states and Washington, D.C. Based in Columbus, Ohio, Chicago, Illinois and San Diego, California, AEP’s family of competitive companies takes pride in making it easy for customers and partners to buy, manage and use energy. Learn more about AEP Energy Partners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005791/en/
Contacts
Media:
Mary Grikas
Mary.Grikas@lightsourcebp.com
Sarah Devine
sedevine@aep.com
614/716-2011
- AEP REPORTS STRONG 2022 EARNINGS RESULTS
Feb 23, 2023
Year-end 2022 GAAP earnings of $4.51 per share; operating earnings of $5.09 per share Company advances strategic initiatives including sales agreement for contracted renewables, new FERC 203 filing for Kentucky sale and continued strategic review of retail business 2023 operating earnings (non-GAAP) guidance range reaffirmed at $5.19 to $5.39 per share with long-term growth rate of 6% to 7%
COLUMBUS, Ohio, Feb. 23, 2023 /PRNewswire/ --
AMERICAN ELECTRIC POWER Preliminary, unaudited results Fourth Quarter ended December 31 Year-to-date ended December 31 2022 2021 Variance 2022 2021 Variance Revenue ($ in billions): 4.9 4.1 0.8 19.6 16.8 2.8 Earnings ($ in millions): GAAP 384.3 538.9 (154.6) 2,307.2 2,488.1 (180.9) Operating (non-GAAP) 540.1 496.2 43.9 2,605.2 2,372.9 232.3 EPS ($): GAAP 0.75 1.07 (0.32) 4.51 4.97 (0.46) Operating (non-GAAP) 1.05 0.98 0.07 5.09 4.74 0.35 EPS based on 514 million shares 4Q 2022, 504 million shares 4Q 2021, 512 million shares YTD 2022 and 501 million shares YTD 2021.
American Electric Power (Nasdaq: AEP) today reported fourth-quarter 2022 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $384 million or $0.75 per share, compared with GAAP earnings of $539 million or $1.07 per share in fourth-quarter 2021. Operating earnings for fourth-quarter 2022 were $540 million or $1.05 per share, compared with operating earnings of $496 million or $0.98 per share in fourth-quarter 2021. Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items.
Year-end 2022 GAAP earnings were $2.3 billion or $4.51 per share, compared with GAAP earnings of $2.5 billion or $4.97 per share for year-end 2021. Year-end 2022 operating earnings were $2.6 billion or $5.09 per share, compared with operating earnings of $2.4 billion or $4.74 per share for year-end 2021.
A full reconciliation of GAAP earnings to operating earnings for the quarter and year-to-date is included in the tables at the end of this news release.
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"Our focus on building a safe, reliable and cleaner energy system for the future while keeping rates affordable and attracting new business to our service territory is delivering benefits for our customers, communities and investors," said Julie Sloat, AEP president and chief executive officer.
"AEP is leading one of the largest clean energy transformations in the country with our current plan to add more than 15 gigawatts of new renewable resources over the next decade. This transition allows us to add fuel-free generation for the benefit of our customers. At the same time, the $26 billion we plan to invest in our transmission and distribution systems over the next five years will help ensure the continued delivery of safe, reliable and affordable power to serve our communities," Sloat said.
"We're strengthening our focus on these regulated investments and de-risking the business through active management of our portfolio, including the agreement that we announced yesterday to sell 1,365 megawatts of unregulated contracted renewables. We expect to close on that sale in the second quarter of 2023. We continue working closely with Liberty to complete the sale process of our Kentucky operations, filing a new FERC 203 application earlier this month and requesting expedited approval of the transaction. We also remain committed to completing the strategic review of our retail business in the first half of this year.
"We're seeing the tangible benefits of our long-term, strategic economic development program, despite global economic uncertainty and inflationary cost pressures. Two-thirds of our industrial load growth in 2022 was directly tied to our previous economic development efforts. Bringing new jobs and growth to our communities also helps maintain affordability as we make critical investments in the energy system," Sloat said.
SUMMARY OF RESULTS BY SEGMENT $ in millions GAAP Earnings 4Q 22 4Q 21 Variance YTD 22 YTD 21 Variance Vertically Integrated Utilities (a) 215.7 177.3 38.4 1,292.0 1,113.6 178.4 Transmission & Distribution Utilities (b) 112.6 119.4 (6.8) 595.7 543.4 52.3 AEP Transmission Holdco (c) 188.1 170.3 17.8 673.5 677.8 (4.3) Generation & Marketing (d) (0.7) 27.8 (28.5) 283.6 217.5 66.1 All Other (131.4) 44.1 (175.5) (537.6) (64.2) (473.4) Total GAAP Earnings (Loss) 384.3 538.9 (154.6) 2,307.2 2,488.1 (180.9) Operating Earnings (non-GAAP) 4Q 22 4Q 21 Variance YTD 22 YTD 21 Variance Vertically Integrated Utilities (a) 208.7 196.1 12.6 1,307.9 1,131.2 176.7 Transmission & Distribution Utilities (b) 112.6 128.5 (15.9) 595.7 552.5 43.2 AEP Transmission Holdco (c) 188.1 166.1 22.0 673.5 673.8 (0.3) Generation & Marketing (d) 81.1 30.4 50.7 256.7 129.2 127.5 All Other (50.4) (24.9) (25.5) (228.6) (113.8) (114.8) Total Operating Earnings (non-GAAP) 540.1 496.2 43.9 2,605.2 2,372.9 232.3
A full reconciliation of GAAP earnings with operating earnings is included in tables at the end of this news release. (a) Includes AEP Generating Co., Appalachian Power, Indiana Michigan Power, Kentucky Power, Kingsport Power, Public Service Co. of Oklahoma, Southwestern Electric Power and Wheeling Power (b) Includes Ohio Power and AEP Texas (c) Includes wholly-owned transmission-only subsidiaries and transmission-only joint ventures (d) Includes AEP OnSite Partners, AEP Renewables, competitive generation in ERCOT and PJM as well as marketing, risk management and retail activities in ERCOT, PJM and MISO
EARNINGS GUIDANCE
AEP management reaffirms its 2023 operating earnings guidance range of $5.19 to $5.39 per share. Operating earnings could differ from GAAP earnings for matters such as divestitures, impairments or changes in accounting principles. AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.
WEBCAST
AEP's quarterly discussion with financial analysts and investors will be broadcast live over the internet at 9 a.m. Eastern today at http://www.aep.com/webcasts. The webcast will include audio of the discussion and visuals of charts and graphics referred to by AEP management. The charts and graphics will be available for download at http://www.aep.com/webcasts.
AEP's earnings are prepared in accordance with accounting principles generally accepted in the United States and represent the company's earnings as reported to the Securities and Exchange Commission. The company's operating earnings, a non-GAAP measure representing GAAP earnings excluding special items as described in the news release and charts, provide another representation for investors to evaluate the performance of the company's ongoing business activities. AEP uses operating earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings outlook and results. The company uses operating earnings data internally to measure performance against budget, to report to AEP's Board of Directors and also as an input in determining performance-based compensation under the company's employee incentive compensation plans.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 225,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com.
WEBSITE DISCLOSURE
AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP's website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the "Email Alerts" section at https://www.aep.com/investors/.
This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories; the impact of pandemics and any associated disruption of AEP's business operations due to impacts on economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers; the economic impact of increased global trade tensions including the conflict between Russia and Ukraine, and the adoption or expansion of economic sanctions or trade restrictions; inflationary or deflationary interest rate trends; volatility and disruptions in the financial markets precipitated by any cause, including failure to make progress on federal budget or debt ceiling matters, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly if expected sources of capital, such as proceeds from the sale of assets or subsidiaries, do not materialize, and during periods when the time lag between incurring costs and recovery is long and the costs are material; decreased demand for electricity; weather conditions, including storms and drought conditions, and AEP's ability to recover significant storm restoration costs; the cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel; the availability of fuel and necessary generation capacity and the performance of generation plants; AEP's ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to transition from fossil generation and the ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms, including favorable tax treatment, and to recover those costs; new legislation, litigation and government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances that could impact the continued operation, cost recovery, and/or profitability of generation plants and related assets; the impact of federal tax legislation on results of operations, financial condition, cash flows or credit ratings; the risks associated with fuels used before, during and after the generation of electricity and the byproducts and wastes of such fuels, including coal ash and spent nuclear fuel; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance; resolution of litigation; AEP's ability to constrain operation and maintenance costs; prices and demand for power generated and sold at wholesale; changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation; AEP's ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives; volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas; the impact of changing expectations and demands of customers, regulators, investors and stakeholders, including heightened emphasis on environmental, social and governance concerns; changes in utility regulation and the allocation of costs within regional transmission organizations, including ERCOT, PJM and SPP; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; the impact of volatility in the capital markets on the value of the investments held by AEP's pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard-setting bodies; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, naturally occurring and human-caused fires, cyber security threats and other catastrophic events; and the ability to attract and retain the requisite work force and key personnel.
American Electric Power Financial Results for the Fourth Quarter of 2022 Reconciliation of GAAP to Operating Earnings (non-GAAP) 2022 Vertically
Integrated
Utilities Transmission
& Distribution
Utilities AEP
Transmission
Holdco Generation
&
Marketing Corporate
and Other Total EPS (a) ($ millions) GAAP Earnings (Loss) 215.7 112.6 188.1 (0.7) (131.4) 384.3 $ 0.75 Special Items (b) Mark-to-Market Impact of Commodity Hedging Activities (c) (7.0) — — 96.8 — 89.8 0.18 Pending Sale of Kentucky Operations (d) — — — — 80.4 80.4 0.15 Mark-to-Market Impact of Certain Investments (e) — — — — (3.2) (3.2) (0.01) Pending Sale of Unregulated Renewables (f) — — — — 0.9 0.9 — Impairment and Disposition of Investment in Flat Ridge 2 (g) — — — (15.0) 2.9 (12.1) (0.02) Total Special Items (7.0) — — 81.8 81.0 155.8 $ 0.30 Operating Earnings (Loss)
(non-GAAP) 208.7 112.6 188.1 81.1 (50.4) 540.1 $ 1.05 Financial Results for the Fourth Quarter of 2021 Reconciliation of GAAP to Operating Earnings (non-GAAP) 2021 Vertically
Integrated
Utilities Transmission
& Distribution
Utilities AEP
Transmission
Holdco Generation
&
Marketing Corporate
and Other Total EPS (a) ($ millions) GAAP Earnings (Loss) 177.3 119.4 170.3 27.8 44.1 538.9 $ 1.07 Special Items (b) Mark-to-Market Impact of Commodity Hedging Activities (c) — — — 18.8 — 18.8 0.04 Pending Sale of Kentucky Operations (d) — — — — 7.1 7.1 0.01 State Tax Law Changes (h) 2.5 — — — 2.5 5.0 0.01 Accumulated Deferred Income Tax Adjustments (i) 7.1 9.1 (4.2) 14.1 (78.6) (52.5) (0.11) Gain on Sale of Certain Merchant Generation Assets (j) — — — (30.3) — (30.3) (0.06) Dolet Hills Power Station Regulatory Disallowance (k) 9.2 — — — — 9.2 0.02 Total Special Items 18.8 9.1 (4.2) 2.6 (69.0) (42.7) $ (0.09) Operating Earnings (Loss)
(non-GAAP) 196.1 128.5 166.1 30.4 (24.9) 496.2 $ 0.98
(a) Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic (b) Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted (c) Represents the impact of mark-to-market economic hedging activities (d) Includes a $100 million loss on the expected sale of the Kentucky operations and other related third-party transaction costs (e) Represents the impact of mark-to-market on certain investments (f) Represents third-party transaction costs due to the unregulated renewable sales process (g) Represents the impact of the impairment and disposition of AEP's investment in the Flat Ridge 2 wind farm joint venture (h) Represents the impact of the remeasurement of accumulated deferred income taxes as a result of enacted state tax legislation in Arkansas, Louisiana, Oklahoma and West Virginia (i) Represents the impact of out-of-period adjustments related to accumulated deferred income taxes (j) Represents the gain on the sale of certain merchant generation assets (k) Represents the impact of the PUCT's partial regulatory disallowance of SWEPCO's investment in the Dolet Hills Power Station as a result of the 2020 Texas Base Rate Case
American Electric Power Summary of Selected Sales Data Regulated Connected Load Three Months Ended December 31 ENERGY & DELIVERY SUMMARY 2022 2021 Change Vertically Integrated Utilities Retail Electric (in millions of KWh): Residential 7,456 7,024 6.2 % Commercial 5,701 5,437 4.9 % Industrial 8,602 8,383 2.6 %
- AEP SIGNS AGREEMENT TO SELL UNREGULATED RENEWABLES ASSETS
Feb 22, 2023
COLUMBUS, Ohio, Feb. 22, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has entered into an agreement to sell its 1,365-megawatt (MW) unregulated, contracted renewables portfolio to IRG Acquisition Holdings, a partnership owned by Invenergy, CDPQ and funds managed by Blackstone Infrastructure, at an enterprise value of $1.5 billion including project debt. The sale is expected to close in the second quarter of 2023. At the closing, AEP expects to net approximately $1.2 billion in cash after taxes, transaction fees and other customary adjustments.
"We're committed to de-risking the company and prioritizing investments in our core regulated businesses. The proceeds from the sale will be directed to the significant pipeline of opportunities we have to enhance service for customers across our footprint and advance our clean energy transition," said Julie Sloat, AEP president and chief executive officer.
As previously announced, AEP plans to invest approximately $40 billion over the next five years in its regulated wires and generation business with a focus on adding 17,000 MW of new generation resources and more resilient, efficient transmission and distribution infrastructure to serve customers.
The sale portfolio includes 14 projects, representing 1,200 MW of wind and 165 MW of solar in 11 states. The renewable power from the projects is contracted under long-term agreements with other utilities, corporations and municipalities.
J.P. Morgan is serving as lead financial advisor and Citigroup Global Markets is serving as financial advisor to AEP for this transaction. Hunton Andrews Kurth LLP is serving as legal counsel to AEP.
AEP announced its plan to sell the assets in February 2022 and launched a competitive bidding process in August. The sale is subject to satisfaction of customary closing conditions, including regulatory approval by the Federal Energy Regulatory Commission, clearance from the Committee on Foreign Investment in the United States and approval under applicable competition laws.
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American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 225,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com.
This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories; the impact of pandemics, including COVID-19, and any associated disruption of AEP's business operations due to impacts on economic or market conditions, costs of compliance with potential government regulations and employees' reactions to those regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers; the economic impact of escalating global trade tensions including the conflict between Russia and Ukraine, and the adoption or expansion of economic sanctions or trade restrictions; inflationary or deflationary interest rate trends; volatility in the financial markets, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly if expected sources of capital, such as proceeds from the sale of assets or subsidiaries, do not materialize, and during periods when the time lag between incurring costs and recovery is long and the costs are material; decreased demand for electricity; weather conditions, including storms and drought conditions, and AEP's ability to recover significant storm restoration costs; the cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel; the availability of fuel and necessary generation capacity and the performance of generation plants; AEP's ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to transition from fossil generation and the ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms, including favorable tax treatment, and to recover those costs; new legislation, litigation and government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances that could impact the continued operation, cost recovery, and/or profitability of AEP's generation plants and related assets; the risks associated with fuels used before, during and after the generation of electricity, including coal ash and nuclear fuel; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance; resolution of litigation; AEP's ability to constrain operation and maintenance costs; prices and demand for power generated and sold at wholesale; changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation; AEP's ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives; volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas; changes in utility regulation and the allocation of costs within regional transmission organizations, including ERCOT, PJM and SPP; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; the impact of volatility in the capital markets on the value of the investments held by AEP's pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard-setting bodies; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, naturally occurring and human-caused fires, cyber security threats and other catastrophic events; and the ability to attract and retain the requisite work force and key personnel.
WEBSITE DISCLOSURE
AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP's website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the "Email Alerts" section at https://www.aep.com/investors/. (PRNewsfoto/American Electric Power) Cision
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SOURCE American Electric Power
- AEP SCHEDULES LIVE WEBCAST OF QUARTERLY EARNINGS CALL
Feb 16, 2023
COLUMBUS, Ohio, Feb. 16, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has scheduled a quarterly earnings conference call with financial analysts at 9 a.m. ET Thursday, Feb. 23. The call will be broadcast live over the internet at http://www.aep.com/webcasts.
The webcast will include audio of the call as well as visuals of charts and graphics referred to by AEP management during the call.
The call will be archived on http://www.aep.com/webcasts for use by those unable to listen to the live webcast.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com. (PRNewsfoto/American Electric Power) Cision
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SOURCE American Electric Power
- AEP and Liberty File New FERC 203 Application for Approval of Kentucky Sale
Feb 13, 2023
COLUMBUS, Ohio, Feb. 13, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) and Liberty, an indirect subsidiary of Algonquin Power & Utilities Corp., today filed a new application with the Federal Energy Regulatory Commission (FERC) under section 203 of the Federal Power Act seeking approval of the sale of AEP's Kentucky operations to Liberty. The companies are asking FERC for expedited review of the application as they work to close the transaction by April 26, 2023. In December 2022, FERC denied approval of the sale without prejudice and outlined the additional information about customer protections needed to obtain approval.
"AEP and Liberty are committed to the sale and are requesting FERC's accelerated review of the application so customers in eastern Kentucky can begin benefiting from the transaction," said Julie Sloat, AEP president and chief executive officer. "In addition to the Kentucky sale, AEP remains focused on advancing the strategic initiatives we have outlined, including the sale of our competitive renewables portfolio and the strategic review of our retail business. These actions are consistent with the equity financing plan, operating earnings guidance and long-term growth rate of 6-7% announced at our analyst day last October."
The new 203 application addresses the concerns raised in FERC's December 2022 order and demonstrates that there will be no adverse impact on FERC-jurisdictional customer rates as a result of the transaction. The new application outlines several financial measures Liberty will take for the next five years which include: maintaining the return on equity; maintaining the current cost cap on equity; financing future credit investment at the current credit rating; and capping certain operating and administrative costs.
FERC approval will enable benefits to retail customers in eastern Kentucky and boost economic growth in the region. This includes the following benefits that were part of the Kentucky Public Service Commission's order approving the transaction:
$40 million fund to help offset volatile fuel rates through 2023 A "rate holiday" on the collection of the Big Sandy decommissioning rider for three years More than 100 new jobs and expanded local management and customer service, including a new call center in the Kentucky service territory.
Finalization of the transaction is subject to FERC approval and federal clearance pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com. (PRNewsfoto/American Electric Power) Cision
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SOURCE American Electric Power
- AEP Names Duncan Senior Vice President of Federal Affairs
Feb 6, 2023
COLUMBUS, Ohio, Feb. 6, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has named Emily J. Duncan senior vice president, Federal Affairs, effective Feb. 13 working in the company's Washington D.C. office. Duncan is currently vice president, Government Relations for National Grid. Emily Duncan, AEP senior vice president, Federal Affairs
Duncan will be responsible for managing AEP's relationships with federal government officials, members of Congress, various federal regulatory agencies and industry trade groups. She replaces Tony Kavanagh who will retire after more than 31 years of dedicated service to the company. Kavanagh will serve as senior vice president, Washington Office until his retirement June 30. Duncan will report to Raja Sundararajan, executive vice president, External Affairs.
"Tony has led our Washington D.C. office and been a trusted resource for federal policy makers for decades. His knowledge and ability to build relationships have been invaluable to AEP," said Sundararajan. "We wish him all the best in retirement.
"Emily brings 15 years of legislative and regulatory experience working on a variety of important energy policy issues. Her extensive industry knowledge, stellar reputation and dynamic leadership will allow AEP to continue to enhance the safe and reliable electric service we provide to our customers."
Duncan, 40, was named vice president of government relations and head of National Grid's Washington, D.C. office in April 2021. Previously she served as their director of federal government affairs.
Before joining National Grid in 2015, she worked for more than four years at the Solar Energy Industries Association, the national trade association for the solar industry. There, Duncan served in several roles, rising to become the association's director of Government Affairs & Counsel.
Duncan is past chair of the Board of the Business Council for Sustainable Energy (BCSE) and is a past-president of the Washington D.C. Chapter of the Women's Energy Network. She has served on the boards of the British American Business Association, the Clean Energy Business Network, the Global Business Alliance, National Energy Resources Organization, the BCSE Foundation, and Women in Government Relations. She also serves on the Advisory Board of the University of Pennsylvania's Kleinman Center for Energy Policy. She is a graduate of the University of Pennsylvania and earned her law degree from Duke University.
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SOURCE American Electric Power
- AEP HONORED AS ONE OF FORTUNE'S WORLD'S MOST ADMIRED COMPANIES FOR 10th CONSECUTIVE YEAR
Feb 1, 2023
COLUMBUS, Ohio, Feb. 1, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) was included in Fortune magazine's 2023 World's Most Admired Companies list, which evaluates companies' financial performance and corporate reputation. This is the 10th consecutive year the company is being recognized in the list's electric and gas utilities sector.
Each year, Fortune asks top executives, directors and financial analysts to provide their opinions about the companies in their industry based upon nine criteria: financial soundness, use of corporate assets, long-term investment value, quality of management, quality of products and services, people management, innovation, social responsibility, and global competitiveness. AEP was one of 645 companies from 27 countries surveyed for inclusion on this year's list.
"AEP's strategic vision prioritizes delivering clean, reliable energy and investing in an efficient, resilient energy system to benefit our customers," said Julie Sloat, AEP president and chief executive officer. "We've received this recognition for a decade, which speaks to our ability to execute and deliver value to our stakeholders. We look forward to continuing this legacy by powering the communities we serve, leading the transition to a clean energy economy and strengthening our commitment to operational excellence."
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, 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. For more information, visit aep.com.
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SOURCE American Electric Power
- AEP Names Burbure Vice President of FERC and RTO Strategy & Policy
Feb 1, 2023
COLUMBUS, Ohio, Feb. 1, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has named Stacey Burbure vice president, FERC and RTO Strategy and Policy, effective Feb. 4. Burbure replaces Amanda Conner, who now serves as chief of staff to Julie Sloat, AEP's president and chief executive officer.
Burbure, 43, most recently served as senior counsel, transmission policy and rates. She will be responsible for leading AEP's regulatory and policy efforts at the Federal Energy Regulatory Commission (FERC) and Regional Transmission Organizations (RTOs) as the company develops the electric system of the future to best serve its customers. She will report to Antonio Smyth, senior vice president – Grid Solutions.
"Stacey has spent nearly 20 years working with regulators on complex regulatory and policy issues that affect every electricity customer. Her extensive knowledge and experience will serve our customers well as AEP is investing in electric transmission infrastructure and new sources of generation to serve our customers with safe and reliable electricity," Smyth said.
Prior to joining AEP in 2019, Burbure served as senior counsel, focusing on transmission issues, for an investor-owned utility. Previously, she was senior counsel to the North American Electric Reliability Corporation where she acted as lead counsel to the Reliability Standards Committee. Stacey began her career in the energy field in 2003 in private practice.
Burbure earned her bachelor's degree from Swarthmore College and her law degree from George Washington University Law School. She is a board member of the Charitable Foundation of the Energy Bar Association. (PRNewsfoto/American Electric Power) Cision
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