American Electric Power says it is “rooted deep in innovation” and “ready to meet unprecedented customer demand” that will result in “significant infrastructure investment” while it continues to have strong financial results.
“We are in the midst of a generational load growth phenomenon throughout our diversified service territory,” CEO Bill Fehrman told financial analysts during its Feb. 12 year-end earnings call.
Pointing to hot spots in Indiana, Ohio, Oklahoma and Texas, Fehrman said AEP has 56 GW of “firm, incremental, contracted load,” doubling what it reported just three months prior. He said the gigawatts are not speculative, as they are back by signed customer agreements. (See Xcel Energy, AEP Plan to Invest $132B Through 2030.)
“Meeting this demand must be done responsibly,” he told analysts. “It is critically important that costs associated with these large loads are allocated fairly and the right investments are made for the long-term success of our grid.”
The Columbus, Ohio-based company says it’s working with federal and state lawmakers and regulators to streamline the connection of new energy resources to serve the large loads and to protect residential customers from extra costs. It has helped passed large load tariffs in Indiana, Kentucky, Ohio and West Virginia.
Fehrman said AEP’s “unmatched scale” of transmission “continues to be a defining advantage for AEP.” The company owns or operates nearly 90% of the nation’s 765-kV infrastructure, with more than 2,100 miles of lines. That will increase with three recently awarded 765 projects: $2.5 billion in SPP, $1.5 billion in PJM and $500 million in MISO.
AEP said it has a long-term strategic partnership with contracting firm Quanta Services to support its 765-kV transmission buildout. It also has secured 10 GW of capacity from major gas turbine manufacturers.
The company reported year-end earnings of $3.58 billion ($6.70/share), bettering its 2024 year-end performance of $2.97 billion ($5.60/share). Earnings for the quarter came in at $582 million ($1.09/share), compared to $664 million ($1.25/share) for the same period a year ago. Its adjusted earnings per share of $5.97 beat the Zacks Consensus Estimate of $5.90.
AEP also reaffirmed its 2026 operating earnings outlook of $6.15 to $6.45/share and its long-term operating earnings growth rate of 7 to 9%.
The company’s share price closed at $129.94 on Feb. 13, up 6.3% from its pre-earnings close of $122.25.
