COLUMBUS, Ohio, Feb. 24,
2022 /PRNewswire/ --
|
AMERICAN ELECTRIC
POWER
|
Preliminary,
unaudited results
|
|
|
|
Fourth Quarter
ended December 31
|
|
Year-to-date ended
December 31
|
|
|
2021
|
2020
|
Variance
|
|
2021
|
2020
|
Variance
|
Revenue ($ in
billions):
|
4.1
|
3.6
|
0.5
|
|
16.8
|
14.9
|
1.9
|
Earnings ($ in
millions):
|
|
|
|
|
|
|
|
|
GAAP
|
538.9
|
435.5
|
103.4
|
|
2,488.1
|
2,200.1
|
288.0
|
|
Operating
(non-GAAP)
|
496.2
|
432.7
|
63.5
|
|
2,372.9
|
2,198.6
|
174.3
|
|
|
|
|
|
|
|
|
|
EPS
($):
|
|
|
|
|
|
|
|
|
|
GAAP
|
1.07
|
0.88
|
0.19
|
|
4.97
|
4.44
|
0.53
|
|
Operating
(non-GAAP)
|
0.98
|
0.87
|
0.11
|
|
4.74
|
4.44
|
0.30
|
|
EPS based on 504
million shares 4Q 2021, 496 million shares 4Q 2020, 501 million
shares YTD 2021 and 496 million shares YTD 2020.
|
|
American Electric Power (Nasdaq: AEP) today reported
fourth-quarter 2021 earnings, prepared in accordance with Generally
Accepted Accounting Principles (GAAP), of $539 million or $1.07 per share, compared with GAAP earnings of
$436 million or $0.88 per share in fourth-quarter 2020. Operating
earnings for fourth-quarter 2021 were $496
million or $0.98 per share,
compared with operating earnings of $433
million or $0.87 per share in
fourth-quarter 2020. Operating earnings is a non-GAAP measure
representing GAAP earnings excluding special items.
Year-end 2021 GAAP earnings were $2.5
billion or $4.97 per share,
compared with GAAP earnings of $2.2
billion or $4.44 per share for
year-end 2020. Year-end 2021 operating earnings were $2.4 billion or $4.74 per share, compared with operating earnings
of $2.2 billion or $4.44 per share for year-end 2020.
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.
"Our strong 2021 performance was driven by continued strategic
investments in a clean, reliable, resilient and cost-effective
energy system to benefit our customers and communities," said
Nicholas K. Akins, AEP's chairman,
president and chief executive officer. "As we continue to build on
our successful track record of investing capital and optimizing our
portfolio to support earnings growth, we are pleased to share that
we are raising our 2022 operating earnings guidance range to
$4.87 to $5.07 per share, increasing our long-term growth
rate target to 6% to 7% and lifting our FFO-to-debt target to 14%
to 15%.
"In line with our commitment to prioritize investments in our
regulated businesses, AEP is beginning a process to sell all or a
portion of our unregulated contracted renewables portfolio. This
move will simplify and de-risk the company while allowing us to
redeploy capital to our regulated businesses, where we see a
meaningful pipeline of investment opportunities to enhance service
for customers across our footprint.
"We are shifting $1.5 billion in
our five-year capital plan to transmission and eliminating growth
capital in the unregulated contracted renewables business. This
brings our planned transmission capital investment to $14.4 billion as we advance projects that
modernize the grid and support the clean energy transition.
"We plan to add approximately 16,000 megawatts of renewables in
our regulated states by 2030, and our work is well underway. A key
milestone in these efforts is the completion of Traverse, the
largest single wind farm ever built in North America. Traverse is in the final stages
of commissioning, and we expect the facility to go online soon.
Traverse, Maverick and Sundance make up our North Central Energy
Facilities that will deliver an estimated $3
billion in customer savings over the next 30 years. These
clean energy investments and our focus on deploying new
technologies and enhancing the grid ensure we are on track to reach
our goal of net zero carbon emissions by 2050," Akins said.
"Our load growth in 2021 was the strongest in more than a decade
as the economy recovered from the impacts of the pandemic, and we
expect to maintain that momentum this year. Our robust economic
development efforts have contributed to significant business
expansion and relocation in our service territory, and we continue
to work closely with our partners to identify new load growth
opportunities that support job creation in our communities.
"Finally, as we announced in October, we expect to close on the
sale of our Kentucky operations in
the second quarter of 2022 once we receive the necessary state and
federal regulatory approvals. We are working closely with Liberty
to ensure a smooth transition for customers in the area and the
Kentucky employees who will
transfer to Liberty after the close of the sale," Akins said.
SUMMARY OF RESULTS
BY SEGMENT
|
$ in
millions
|
|
GAAP
Earnings
|
4Q
21
|
4Q
20
|
Variance
|
YTD
21
|
YTD
20
|
Variance
|
Vertically Integrated
Utilities (a)
|
177.3
|
166.9
|
10.4
|
1,113.6
|
1,061.6
|
52.0
|
Transmission &
Distribution Utilities (b)
|
119.4
|
93.3
|
26.1
|
543.4
|
496.4
|
47.0
|
AEP Transmission
Holdco (c)
|
170.3
|
134.4
|
35.9
|
677.8
|
504.8
|
173.0
|
Generation &
Marketing (d)
|
27.8
|
15.9
|
11.9
|
217.5
|
226.9
|
(9.4)
|
All Other
|
44.1
|
25.0
|
19.1
|
(64.2)
|
(89.6)
|
25.4
|
Total GAAP
Earnings (Loss)
|
538.9
|
435.5
|
103.4
|
2,488.1
|
2,200.1
|
288.0
|
|
|
|
|
|
|
|
Operating Earnings
(non-GAAP)
|
4Q
21
|
4Q
20
|
Variance
|
YTD
21
|
YTD
20
|
Variance
|
Vertically Integrated
Utilities (a)
|
196.1
|
155.1
|
41.0
|
1,131.2
|
1,095.2
|
36.0
|
Transmission &
Distribution Utilities (b)
|
128.5
|
93.8
|
34.7
|
552.5
|
508.3
|
44.2
|
AEP Transmission
Holdco (c)
|
166.1
|
134.6
|
31.5
|
673.8
|
508.7
|
165.1
|
Generation &
Marketing (d)
|
30.4
|
24.2
|
6.2
|
129.2
|
178.0
|
(48.8)
|
All Other
|
(24.9)
|
25.0
|
(49.9)
|
(113.8)
|
(91.6)
|
(22.2)
|
Total Operating
Earnings (non-GAAP)
|
496.2
|
432.7
|
63.5
|
2,372.9
|
2,198.6
|
174.3
|
|
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 raised its 2022 operating earnings guidance range
to $4.87 to $5.07 per share. Operating earnings could differ
from GAAP earnings for matters such as impairments, divestitures 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 16,700 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 30,000 megawatts of diverse generating capacity,
including more than 6,100 megawatts of renewable energy. The
company's plans include growing its renewable generation portfolio
to approximately 50% of total capacity by 2030. AEP is on track to
achieve an 80% reduction in carbon dioxide emissions from 2000
levels by 2030 and has committed to achieve net zero by 2050. 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, 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 vaccination or
testing mandates to AEP, electricity usage, supply chain issues,
employees including employee reactions to potential vaccination
mandates, customers, service providers, vendors and suppliers;
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, 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 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
|
|
State Tax Law
Changes
|
(d)
|
2.5
|
|
—
|
|
—
|
|
—
|
|
2.5
|
|
5.0
|
|
0.01
|
|
Accumulated Deferred
Income Tax Adjustments
|
(e)
|
7.1
|
|
9.1
|
|
(4.2)
|
|
14.1
|
|
(78.6)
|
|
(52.5)
|
|
(0.11)
|
|
Gain on Sale of
Certain Merchant Generations Assets
|
(f)
|
—
|
|
—
|
|
—
|
|
(30.3)
|
|
—
|
|
(30.3)
|
|
(0.06)
|
|
Dolet Hills Power
Station Regulatory Disallowance
|
(g)
|
9.2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9.2
|
|
0.02
|
|
Transaction Costs -
Sale of Kentucky Operations
|
(h)
|
—
|
|
—
|
|
—
|
|
—
|
|
7.1
|
|
7.1
|
|
$
0.01
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for the Fourth Quarter of 2020
|
Reconciliation of
GAAP to Operating Earnings (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
|
Vertically
Integrated
Utilities
|
|
Transmission
& Distribution
Utilities
|
|
AEP
Transmission
Holdco
|
|
Generation
&
Marketing
|
|
Corporate
and Other
|
|
Total
|
|
EPS (a)
|
|
|
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
166.9
|
|
93.3
|
|
134.4
|
|
15.9
|
|
25.0
|
|
435.5
|
|
$
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of
Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
4.4
|
|
—
|
|
4.4
|
|
0.01
|
|
COVID-19
|
(i)
|
1.7
|
|
0.5
|
|
0.2
|
|
0.1
|
|
—
|
|
2.5
|
|
—
|
|
CARES ACT
|
(j)
|
—
|
|
—
|
|
—
|
|
3.8
|
|
—
|
|
3.8
|
|
0.01
|
|
Virginia Triennial
Review
|
(k)
|
(13.5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(13.5)
|
|
(0.03)
|
Total Special
Items
|
|
(11.8)
|
|
0.5
|
|
0.2
|
|
8.3
|
|
—
|
|
(2.8)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(non-GAAP)
|
|
155.1
|
|
93.8
|
|
134.6
|
|
24.2
|
|
25.0
|
|
432.7
|
|
$
0.87
|
|
|
|
|
(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)
|
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
|
(e)
|
Represents the impact
of out-of-period adjustments related to accumulated deferred income
taxes
|
(f)
|
Represents the gain
on the sale of certain merchant generation assets
|
(g)
|
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
|
(h)
|
Represents
third-party transaction costs incurred due to the strategic
evaluation of AEP's Kentucky operations
|
(i)
|
Represents
incremental expenses incurred related to the COVID-19
pandemic
|
(j)
|
Represents a true-up
of the income tax benefit associated with the 5-year net operating
loss carryback provision of the CARES Act signed into law in March
2020
|
(k)
|
Represents the impact
of the 2017-2019 Virginia Triennial Review
|
American Electric
Power
|
Summary of
Selected Sales Data
|
Regulated
Connected Load
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31
|
ENERGY &
DELIVERY SUMMARY
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail
Electric (in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
7,024
|
|
7,222
|
|
(2.7)%
|
Commercial
|
|
5,437
|
|
5,452
|
|
(0.3)%
|
Industrial
|
|
8,383
|
|
8,525
|
|
(1.7)%
|
Miscellaneous
|
|
542
|
|
549
|
|
(1.3)%
|
Total
Retail
|
|
21,386
|
|
21,748
|
|
(1.7)%
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of KWh): (a)
|
|
4,183
|
|
3,871
|
|
8.1%
|
|
|
|
|
|
|
|
Total
KWHs
|
|
25,569
|
|
25,619
|
|
(0.2)%
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
5,748
|
|
5,642
|
|
1.9 %
|
Commercial
|
|
6,325
|
|
5,844
|
|
8.2%
|
Industrial
|
|
6,252
|
|
5,959
|
|
4.9%
|
Miscellaneous
|
|
179
|
|
181
|
|
(1.1)%
|
Total Retail
(b)
|
|
18,504
|
|
17,626
|
|
5.0%
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of KWh): (a)
|
|
326
|
|
512
|
|
(36.3)%
|
|
|
|
|
|
|
|
Total
KWhs
|
|
18,830
|
|
18,138
|
|
3.8%
|
|
|
(a)
|
Includes off-system
sales, municipalities and cooperatives, unit power and other
wholesale customers
|
(b)
|
Represents energy
delivered to distribution customers
|
American Electric
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for Year-to-Date 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)
|
|
1,113.6
|
|
543.4
|
|
677.8
|
|
217.5
|
|
(64.2)
|
|
2,488.1
|
|
$
4.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
(72.1)
|
|
—
|
|
(72.1)
|
|
(0.14)
|
|
State Tax Law
Changes
|
(d)
|
1.3
|
|
—
|
|
0.2
|
|
—
|
|
21.9
|
|
23.4
|
|
0.05
|
|
Accumulated Deferred
Income Tax Adjustments
|
(e)
|
7.1
|
|
9.1
|
|
(4.2)
|
|
14.1
|
|
(78.6)
|
|
(52.5)
|
|
(0.11)
|
|
Gain on Sale of
Certain Merchant Generations Assets
|
(f)
|
—
|
|
—
|
|
—
|
|
(30.3)
|
|
—
|
|
(30.3)
|
|
(0.06)
|
|
Dolet Hills Power
Station Regulatory Disallowance
|
(g)
|
9.2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9.2
|
|
0.02
|
|
Transaction Costs -
Sale of Kentucky Operations
|
(h)
|
—
|
|
—
|
|
—
|
|
—
|
|
7.1
|
|
7.1
|
|
0.01
|
Total Special
Items
|
|
17.6
|
|
9.1
|
|
(4.0)
|
|
(88.3)
|
|
(49.6)
|
|
(115.2)
|
|
$
(0.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(non-GAAP)
|
|
1,131.2
|
|
552.5
|
|
673.8
|
|
129.2
|
|
(113.8)
|
|
2,372.9
|
|
$
4.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for Year-to-Date 2020
|
Reconciliation of
GAAP to Operating Earnings (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
|
Vertically Integrated
Utilities
|
|
Transmission &
Distribution Utilities
|
|
AEP Transmission
Holdco
|
|
Generation &
Marketing
|
|
Corporate and
Other
|
|
Total
|
|
EPS (a)
|
|
|
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
1,061.6
|
|
496.4
|
|
504.8
|
|
226.9
|
|
(89.6)
|
|
2,200.1
|
|
$
4.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
(6.1)
|
|
—
|
|
(6.1)
|
|
(0.01)
|
|
COVID-19
|
(i)
|
15.6
|
|
4.8
|
|
0.8
|
|
0.2
|
|
—
|
|
21.4
|
|
0.05
|
|
Achieving Excellence
Program
|
(j)
|
30.7
|
|
9.1
|
|
3.1
|
|
1.3
|
|
0.4
|
|
44.6
|
|
0.09
|
|
CARES Act
|
(k)
|
0.8
|
|
(2.0)
|
|
—
|
|
(44.3)
|
|
(2.4)
|
|
(47.9)
|
|
(0.10)
|
|
Virginia Triennial
Review
|
(l)
|
(13.5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(13.5)
|
|
(0.03)
|
Total Special
Items
|
|
33.6
|
|
11.9
|
|
3.9
|
|
(48.9)
|
|
(2.0)
|
|
(1.5)
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(non-GAAP)
|
|
1,095.2
|
|
508.3
|
|
508.7
|
|
178.0
|
|
(91.6)
|
|
2,198.6
|
|
$
4.44
|
|
|
(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)
|
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
|
(e)
|
Represents the impact
of out-of-period adjustments related to accumulated deferred income
taxes
|
(f)
|
Represents the gain
on the sale of certain merchant generation assets
|
(g)
|
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
|
(h)
|
Represents
third-party transaction costs incurred due to the strategic
evaluation of AEP's Kentucky operations
|
(i)
|
Represents
incremental expenses incurred related to the COVID-19
pandemic
|
(j)
|
Represents
incremental expenses associated with the Achieving Excellence
Program
|
(k)
|
Represents the income
tax benefit associated with the 5-year net operating loss carryback
provision of the CARES Act signed into law in March 2020
|
(l)
|
Represents the impact
of the 2017-2019 Virginia Triennial Review
|
American Electric
Power
|
Summary of
Selected Sales Data
|
Regulated
Connected Load
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31
|
ENERGY &
DELIVERY SUMMARY
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
32,149
|
|
31,526
|
|
2.0%
|
Commercial
|
|
22,833
|
|
22,225
|
|
2.7%
|
Industrial
|
|
33,181
|
|
32,860
|
|
1.0%
|
Miscellaneous
|
|
2,214
|
|
2,185
|
|
1.3%
|
Total
Retail
|
|
90,377
|
|
88,796
|
|
1.8%
|
|
|
|
|
|
|
|
Wholesale Electric (in
millions of KWh): (a)
|
|
19,025
|
|
16,987
|
|
12.0%
|
|
|
|
|
|
|
|
Total KWHs
|
|
109,402
|
|
105,783
|
|
3.4%
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
26,830
|
|
26,518
|
|
1.2%
|
Commercial
|
|
25,514
|
|
23,998
|
|
6.3%
|
Industrial
|
|
23,919
|
|
22,432
|
|
6.6%
|
Miscellaneous
|
|
737
|
|
749
|
|
(1.6)%
|
Total Retail
(b)
|
|
77,000
|
|
73,697
|
|
4.5%
|
|
|
|
|
|
|
|
Wholesale Electric (in
millions of KWh): (a)
|
|
2,018
|
|
1,859
|
|
8.6%
|
|
|
|
|
|
|
|
Total KWhs
|
|
79,018
|
|
75,556
|
|
4.6%
|
|
|
(a)
|
Includes off-system
sales, municipalities and cooperatives, unit power and other
wholesale customers
|
(b)
|
Represents energy
delivered to distribution customers
|
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SOURCE American Electric Power