By Tom Kleckner and Rich Heidorn Jr.

American Electric Power on Monday warned shareholders that the company’s financial condition and operations could be “adversely affected” by the COVID-19 pandemic as other utilities considered delaying spring maintenance.

In an 8-K filing with the Securities and Exchange Commission, AEP said it is working to mitigate the pandemic’s “potential risks” and that it will continue to review and modify its plans as conditions change.

“Despite our efforts to manage these impacts to the company,” AEP said, “their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of this outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects. Therefore, we currently cannot estimate the potential impact to our financial position, results of operations and cash flows.”

The Columbus, Ohio-based company said it has updated and implemented a company-wide plan that addresses specific aspects of the coronavirus pandemic. The plan provides guidance on emergency response, business continuity and precautionary measures to take on behalf of employees and the public, the company said.

“This is a rapidly evolving situation that could lead to extended disruption of economic activity in our markets,” AEP said.

Deferred Maintenance

As of Tuesday, other major utilities including Con Edison, Exelon, NextEra Energy, Entergy, CenterPoint Energy and Sempra Energy had not issued similar warnings to their stockholders.

AEP and other Edison Electric Institute members have pledged to suspend utility disconnects during the crisis.

DTE Energy announced March 23 that it is suspending all noncritical infrastructure and maintenance in response to the pandemic. “This move to keep employees home — in instances other than emergency response to customers — helps to ensure they do not add to the growing spread of the virus and further stress the health care system, equipment and services across the state,” it said.

“Right now, there’s definitely a lot of uncertainty regarding maintenance outages this spring,” said Maggie Cashman, a power market analyst for Genscape, during a webinar Tuesday. “The main concern that has been brought up … is the status of nuclear [refueling] given that they require a large number of contract workers from across the country.”

NB Power has decided to delay the refueling of its Point Lepreau Nuclear Generating Station in New Brunswick, which had been scheduled for April, because of the outbreak.

In the U.S., however, “nuclear outages have gone largely as planned,” Cashman said, noting the refueling of NextEra Energy’s Seabrook plant in New Hampshire was expected to begin this week as scheduled. “Gas generation outages are much more likely to be postponed because they’re not critical and unnecessary for continued operation in the near-term.”

The Nuclear Energy Institute says 32 nuclear plants in 21 states are scheduled for refueling outages this spring.

The Nuclear Regulatory Commission is allowing reductions in non-essential maintenance work, Cashman said. Last week, the NRC said it will allow temporary waivers of its rules limiting the number of plant operators who can stay at work.

Supply Chain

Duke Energy made an 8-K filing March 27 on the pandemic saying it was “actively managing the materials, supplies and contract services for our generation, transmission, distribution and customer services functions” and has had “no issues of significance” in its supply chain. It said it would provide an update on the actual and potential business and financial effects of the pandemic when it announces first quarter 2020 financial results on May 12.

AEP said that while the company has instituted measures to protect its supply chain, global shortages will likely affect its maintenance and capital programs. AEP has enjoyed strong financial success lately. In February, it reported a total shareholder return of 30.5% in 2019, exceeding the 27.5% total return for the S&P 500 Electric Utilities Index. (See Renewables Key to AEP’s Performance.) However, the company’s stock has lost nearly 24% of its value since Feb. 18, when its share price hit a 52-week high of $104.97. Shares closed at $79.98 Tuesday.