COLUMBUS, Ohio, Nov. 6, 2020 /PRNewswire/ -- American Electric
Power (Nasdaq: AEP) will continue its progress toward a clean
energy future by investing in its regulated businesses and
renewable generation. The company's 2021 operating earnings
(earnings excluding special items) guidance range of $4.51 to $4.71 per
share reflects its projected annual operating earnings growth rate
of 5% to 7%. AEP management will discuss the company's strategy and
financial growth plans during the annual Edison Electric Institute
Financial Conference Nov. 9-10, which
will be held virtually this year.
Operating earnings could differ from those prepared in
accordance with Generally Accepted Accounting Principles (GAAP) for
matters such as impairments, divestitures or changes in accounting
principles. AEP is unable to forecast if any of these items will
occur or any amounts that may be recorded for future periods.
Therefore, AEP is not able to provide a corresponding GAAP
equivalent for earnings guidance.
The company plans to invest $37
billion in capital from 2021 through 2025, with the bulk
allocated to regulated businesses and renewables. AEP's capital
plan includes $26.7 billion in
transmission and distribution operations investments to continue
updating infrastructure and implementing new technologies to
benefit customers. During the same period, AEP plans to invest
$2.8 billion in regulated renewable
generation and $2.1 billion in
competitive, contracted renewable projects.
"As AEP transitions to a cleaner energy future, we're creating
new solutions for customers, while also bringing value to our
shareholders. The company's capital investments reflect our
commitment to enhancing service and delivering reliable, clean
energy and advanced technologies that exceed our customers'
expectations," said Nicholas K.
Akins, AEP chairman, president and chief executive
officer.
"We plan to invest 14% of our capital through 2025 in renewable
energy within and outside our traditional service territory, and we
project renewables will represent approximately 40% of our fuel mix
by 2030. As part of our ongoing efforts to diversify our energy
portfolio, AEP received approval this year to move forward with the
North Central wind facilities, which will bring 1,485 megawatts of
clean energy to Southwestern Electric Power Company and Public
Service Company of Oklahoma
customers in Arkansas,
Louisiana and Oklahoma.
"Another significant piece of our capital plan is our investment
in wires, with 71% allocated to improving and updating the energy
grid. By integrating new technologies to optimize distribution and
transmission networks, we'll be better equipped to continue
delivering reliable and affordable clean energy to customers.
"We remain committed to improving our environmental footprint
and leading by example as we work toward a clean energy future. We
announced a goal to replace 100% of the company's 2,300 cars and
light-duty trucks with EV alternatives by 2030, and we plan to
transition medium- and heavy-duty vehicles as electric or hybrid
models become available.
"AEP's strong financial performance continues to provide value
to our shareholders. This year, we increased our quarterly dividend
by 4 cents to 74 cents a share and delivered our
442nd consecutive quarterly cash dividend," Akins
said.
American Electric Power, based in Columbus, Ohio, is focused on building a
smarter energy infrastructure and delivering new technologies and
custom energy solutions to our customers. AEP's approximately
17,000 employees operate and maintain the nation's largest
electricity transmission system and more than 221,000 miles of
distribution lines to efficiently deliver safe, reliable power to
nearly 5.5 million regulated customers in 11 states. AEP also is
one of the nation's largest electricity producers with
approximately 30,000 megawatts of diverse generating capacity,
including more than 5,300 megawatts of renewable energy. 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, AEP Energy Partners,
AEP OnSite Partners, and AEP Renewables, which provide 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; 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 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 generating capacity and the
performance of AEP's generating plants; AEP's ability to recover
fuel and other energy costs through regulated or competitive
electric rates; AEP's 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 and to recover those
costs; new legislation, litigation and government regulation,
including 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; evolving public perception of the risks associated
with fuels used before, during and after the generation of
electricity, including 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 whom AEP has
contractual arrangements, including participants in the energy
trading market; actions of rating agencies, including changes in
the ratings of AEP debt; the impact of volatility in the capital
markets on the value of the investments held by AEP's pension,
OPEB, captive insurance entity and nuclear decommissioning trust
and the impact of such volatility on future funding requirements;
accounting pronouncements periodically issued by accounting
standard-setting bodies; and other risks and unforeseen events,
including wars, the effects of terrorism (including increased
security costs), embargoes, naturally occurring and human-caused
fires, cyber security threats and other catastrophic events.
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SOURCE American Electric Power