- Third-quarter 2022 GAAP earnings of $1.33 per share and $1.62 per share operating
- Company reaffirms narrowed 2022 operating earnings (non-GAAP)
guidance range of $4.97 to
$5.07, raised midpoint of
$5.02, and 6% to 7% long-term growth
rate
- $40 billion, five-year capex plan
focuses on robust pipeline of wires investments and renewable
generation to drive the clean energy transition
COLUMBUS, Ohio, Oct. 27,
2022 /PRNewswire/ --
AMERICAN
ELECTRIC POWER Preliminary, unaudited
results
|
|
|
|
Third Quarter
ended September 30
|
|
Year-to-date ended
September 30
|
|
|
2022
|
2021
|
Variance
|
|
2022
|
2021
|
Variance
|
Revenue ($ in
billions):
|
5.5
|
4.6
|
0.9
|
|
14.8
|
12.7
|
2.1
|
Earnings ($ in
millions):
|
|
|
|
|
|
|
|
|
GAAP
|
683.7
|
796.0
|
(112.3)
|
|
1,922.9
|
1,949.2
|
(26.3)
|
|
Operating
(non-GAAP)
|
831.0
|
716.7
|
114.3
|
|
2,065.1
|
1,876.7
|
188.4
|
|
|
|
|
|
|
|
|
|
EPS
($):
|
|
|
|
|
|
|
|
|
|
GAAP
|
1.33
|
1.59
|
(0.26)
|
|
3.76
|
3.90
|
(0.14)
|
|
Operating
(non-GAAP)
|
1.62
|
1.43
|
0.19
|
|
4.04
|
3.76
|
0.28
|
|
|
|
EPS based on 514
million shares 3Q 2022, 501 million shares 3Q 2021, 511 million
shares YTD 2022 and 499 million shares YTD 2021.
|
American Electric Power (Nasdaq: AEP) today reported
third-quarter 2022 earnings, prepared in accordance with Generally
Accepted Accounting Principles (GAAP), of $684 million or $1.33 per share, compared with GAAP earnings of
$796 million or $1.59 per share in third-quarter 2021. Operating
earnings for third-quarter 2022 were $831
million or $1.62 per share,
compared with operating earnings of $717
million or $1.43 per share in
third-quarter 2021.
Operating earnings is a non-GAAP measure representing GAAP
earnings excluding special items. The difference between 2022 GAAP
and operating earnings for the quarter was largely due to charges
related to the anticipated sale of AEP's Kentucky operations, the write-off of a
Virginia asset associated with
previously closed coal plants, and the mark-to-market impact of
economic hedging activities.
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.
"The robust investments we're making in a modern, reliable,
resilient and cleaner energy system to benefit our customers
continue to support our earnings growth. We recently narrowed our
2022 operating earnings guidance, raising the midpoint to
$5.02 based on our strong performance
this year and proven track record of managing costs as we deliver
on our long-term strategy. AEP's Board of Directors also voted this
week to boost our quarterly dividend by 5
cents to 83 cents per share,"
said Nicholas K. Akins, AEP chair
and chief executive officer.
"We're making substantial progress on simplifying and de-risking
our business profile as we prepare to close on the sale of our
Kentucky operations in
January 2023 and target completion of
our unregulated contracted renewables sale in the second quarter of
2023. As we announced Oct. 4, we also
are pursuing a strategic review of our retail business that we
expect to complete in the first half of 2023. These initiatives are
part of our continued focus on investing in energy resources and
grid solutions in our regulated businesses to enhance service for
our customers," Akins said.
"We are undertaking one of the largest clean energy
transformations in the country with our plan to add nearly 15,700
megawatts of new renewables and energy storage over the next 10
years, in addition to our 1,484-megawatt North Central wind project
that was completed this year," added Julie
Sloat, AEP president and chief financial officer. "Our
investment plan includes $9 billion
in regulated renewables from 2023 through 2027, and we are
committed to reaching our accelerated goal of net zero emissions by
2045.
"Transmission continues to be the largest part of our earnings
growth plan. Coupled with distribution, we have a significant
pipeline of wires investment opportunities – nearly $26 billion over the next five years – as we
focus on improving the reliability and resiliency of the grid and
integrating new resources to support the clean energy economy,"
Sloat said.
"AEP's weather-normalized sales have maintained significant
momentum this year in the face of challenges in the broader
economy. We continue to see commercial and industrial sales
increase across our operating companies and in most sectors, and we
remain focused on our economic development strategy that has
facilitated job growth and new load in our communities.
"In addition to economic development efforts, we understand the
implications of rising fuel costs for our customers and are
actively working with our regulators and other stakeholders to
provide resources to customers and advocate for expanded fuel
recovery timeframes to help ease these pressures. The addition of
renewable resources also will help protect against the impact of
fuel price volatility for customers in the future," Sloat said.
SUMMARY OF RESULTS
BY SEGMENT $ in millions
|
|
GAAP
Earnings
|
3Q 22
|
3Q 21
|
Variance
|
YTD
22
|
YTD
21
|
Variance
|
Vertically Integrated
Utilities (a)
|
476.9
|
437.7
|
39.2
|
1,076.3
|
936.3
|
140.0
|
Transmission &
Distribution Utilities (b)
|
165.5
|
155.9
|
9.6
|
483.1
|
424.0
|
59.1
|
AEP Transmission
Holdco (c)
|
170.5
|
166.8
|
3.7
|
485.4
|
507.5
|
(22.1)
|
Generation &
Marketing (d)
|
97.5
|
100.7
|
(3.2)
|
284.3
|
189.7
|
94.6
|
All Other
|
(226.7)
|
(65.1)
|
(161.6)
|
(406.2)
|
(108.3)
|
(297.9)
|
Total GAAP Earnings
(Loss)
|
683.7
|
796.0
|
(112.3)
|
1,922.9
|
1,949.2
|
(26.3)
|
|
|
|
|
|
|
|
Operating Earnings
(non-GAAP)
|
3Q 22
|
3Q 21
|
Variance
|
YTD
22
|
YTD
21
|
Variance
|
Vertically Integrated
Utilities (a)
|
499.8
|
437.7
|
62.1
|
1,099.2
|
935.1
|
164.1
|
Transmission &
Distribution Utilities (b)
|
165.5
|
155.9
|
9.6
|
483.1
|
424.0
|
59.1
|
AEP Transmission
Holdco (c)
|
170.5
|
166.8
|
3.7
|
485.4
|
507.7
|
(22.3)
|
Generation &
Marketing (d)
|
70.0
|
21.4
|
48.6
|
175.6
|
98.8
|
76.8
|
All Other
|
(74.8)
|
(65.1)
|
(9.7)
|
(178.2)
|
(88.9)
|
(89.3)
|
Total Operating
Earnings (non-GAAP)
|
831.0
|
716.7
|
114.3
|
2,065.1
|
1,876.7
|
188.4
|
|
|
|
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 reaffirmed its narrowed 2022 operating earnings
guidance range of $4.97 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.
Reflecting special items recorded through the third quarter, the
estimated earnings per share on a GAAP basis would be $4.69 to $4.79 per
share. See the table below for a full reconciliation of 2022
earnings guidance.
2022 EPS
Guidance Reconciliation
|
|
|
|
|
Estimated EPS on a
GAAP basis
|
$4.69
|
to
|
$4.79
|
|
|
|
|
Mark-to-market impact
of commodity
hedging
activities
|
|
(0.33)
|
|
|
|
|
|
Pending sale of
Kentucky operations
|
|
0.44
|
|
|
|
|
|
Gain on sale of
mineral rights
|
|
(0.18)
|
|
|
|
|
|
Pending sale of
unregulated renewables
|
|
0.01
|
|
|
|
|
|
Impairment of
investment in Flat Ridge 2
|
|
0.29
|
|
|
|
|
|
Virginia Triennial
Review
|
|
0.05
|
|
|
|
|
|
Operating EPS
Guidance
|
$4.97
|
to
|
$5.07
|
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 31,000 megawatts of diverse generating capacity,
including more than 7,100 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
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, 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 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,
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.
American Electric
Power
|
Financial Results
for the Third 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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
476.9
|
|
165.5
|
|
170.5
|
|
97.5
|
|
(226.7)
|
|
683.7
|
|
$
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
(1.5)
|
|
—
|
|
—
|
|
(29.4)
|
|
—
|
|
(30.9)
|
|
(0.06)
|
|
|
Pending Sale of
Kentucky Operations
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
150.6
|
|
150.6
|
|
0.29
|
|
|
Mark-to-Market Impact
of Certain Investments
|
(e)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.3)
|
|
(2.3)
|
|
—
|
|
|
Pending Sale of
Unregulated Renewables
|
(f)
|
—
|
|
—
|
|
—
|
|
—
|
|
3.6
|
|
3.6
|
|
0.01
|
|
|
Impairment of
Investment in Flat
Ridge 2
|
(g)
|
—
|
|
—
|
|
—
|
|
1.9
|
|
—
|
|
1.9
|
|
—
|
|
|
Virginia Triennial
Review
|
(h)
|
24.4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24.4
|
|
0.05
|
|
Total Special
Items
|
|
22.9
|
|
—
|
|
—
|
|
(27.5)
|
|
151.9
|
|
147.3
|
|
$
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
499.8
|
|
165.5
|
|
170.5
|
|
70.0
|
|
(74.8)
|
|
831.0
|
|
$
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for the Third 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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
437.7
|
|
155.9
|
|
166.8
|
|
100.7
|
|
(65.1)
|
|
796.0
|
|
$
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
(79.3)
|
|
—
|
|
(79.3)
|
|
(0.16)
|
|
Total Special
Items
|
|
—
|
|
—
|
|
—
|
|
(79.3)
|
|
—
|
|
(79.3)
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
437.7
|
|
155.9
|
|
166.8
|
|
21.4
|
|
(65.1)
|
|
716.7
|
|
$
1.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $194.5
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 write-off of AEP's investment in the Flat Ridge 2 wind farm
joint venture
|
(h)
|
Represents the impact
of the Virginia Supreme Court opinion on AEP's appeal of
Appalachian Power's 2017-2019 Triennial Review
|
American Electric
Power
|
Summary of Selected
Sales Data
|
Regulated Connected
Load
|
(Data based on
preliminary, unaudited results)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30
|
ENERGY &
DELIVERY SUMMARY
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
9,115
|
|
9,119
|
|
— %
|
Commercial
|
|
6,640
|
|
6,468
|
|
2.7 %
|
Industrial
|
|
8,862
|
|
8,485
|
|
4.4 %
|
Miscellaneous
|
|
623
|
|
604
|
|
3.1 %
|
Total
Retail
|
|
25,240
|
|
24,676
|
|
2.3 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
4,254
|
|
5,713
|
|
(25.5) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
29,494
|
|
30,389
|
|
(2.9) %
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
8,033
|
|
8,093
|
|
(0.7) %
|
Commercial
|
|
7,538
|
|
7,125
|
|
5.8 %
|
Industrial
|
|
6,554
|
|
6,048
|
|
8.4 %
|
Miscellaneous
|
|
210
|
|
207
|
|
1.4 %
|
Total Retail
(b)
|
|
22,335
|
|
21,473
|
|
4.0 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
587
|
|
644
|
|
(8.9) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
22,922
|
|
22,117
|
|
3.6 %
|
|
|
(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 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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
1,076.3
|
|
483.1
|
|
485.4
|
|
284.3
|
|
(406.2)
|
|
1,922.9
|
|
$
3.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
(1.5)
|
|
—
|
|
—
|
|
(165.3)
|
|
—
|
|
(166.8)
|
|
(0.33)
|
|
|
Accumulated Deferred
Income Tax Adjustments
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.0)
|
|
(2.0)
|
|
—
|
|
|
Pending Sale of
Kentucky Operations
|
(e)
|
—
|
|
—
|
|
—
|
|
—
|
|
226.4
|
|
226.4
|
|
0.44
|
|
|
Gain on Sale of Mineral
Rights
|
(f)
|
—
|
|
—
|
|
—
|
|
(91.9)
|
|
—
|
|
(91.9)
|
|
(0.18)
|
|
|
Pending Sale of
Unregulated Renewables
|
(g)
|
—
|
|
—
|
|
—
|
|
—
|
|
3.6
|
|
3.6
|
|
0.01
|
|
|
Impairment of
Investment in Flat Ridge 2
|
(h)
|
—
|
|
—
|
|
—
|
|
148.5
|
|
—
|
|
148.5
|
|
0.29
|
|
|
Virginia Triennial
Review
|
(i)
|
24.4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24.4
|
|
0.05
|
|
Total Special
Items
|
|
22.9
|
|
—
|
|
—
|
|
(108.7)
|
|
228.0
|
|
142.2
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
1,099.2
|
|
483.1
|
|
485.4
|
|
175.6
|
|
(178.2)
|
|
2,065.1
|
|
$
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
936.3
|
|
424.0
|
|
507.5
|
|
189.7
|
|
(108.3)
|
|
1,949.2
|
|
$
3.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
(90.9)
|
|
—
|
|
(90.9)
|
|
(0.18)
|
|
|
State Tax Law
Changes
|
(j)
|
(1.2)
|
|
—
|
|
0.2
|
|
—
|
|
19.4
|
|
18.4
|
|
0.04
|
|
Total Special
Items
|
|
(1.2)
|
|
—
|
|
0.2
|
|
(90.9)
|
|
19.4
|
|
(72.5)
|
|
$
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
935.1
|
|
424.0
|
|
507.7
|
|
98.8
|
|
(88.9)
|
|
1,876.7
|
|
$
3.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 out-of-period adjustments related to accumulated deferred income
taxes
|
(e)
|
Includes a $263.3
million loss on the expected sale of the Kentucky operations and
other related third-party transaction costs
|
(f)
|
Represents the gain on
the sale of certain mineral rights
|
(g)
|
Represents third-party
transaction costs due to the unregulated renewable sales
process
|
(h)
|
Represents the impact
of the write-off of our investment in the Flat Ridge 2 wind farm
joint venture
|
(i)
|
Represents the impact
of the Virginia Supreme Court opinion on AEP's appeal of
Appalachian Power's 2017-2019 Triennial Review
|
(j)
|
Represents the
remeasurement of accumulated deferred income taxes as a result of
enacted state legislation in Arkansas, Louisiana, Oklahoma and West
Virginia
|
American Electric
Power
|
Summary of Selected
Sales Data
|
Regulated Connected
Load
|
(Data based on
preliminary, unaudited results)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30
|
ENERGY &
DELIVERY SUMMARY
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
25,379
|
|
25,125
|
|
1.0 %
|
Commercial
|
|
18,069
|
|
17,396
|
|
3.9 %
|
Industrial
|
|
25,930
|
|
24,798
|
|
4.6 %
|
Miscellaneous
|
|
1,745
|
|
1,672
|
|
4.4 %
|
Total Retail
|
|
71,123
|
|
68,991
|
|
3.1 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
12,388
|
|
14,842
|
|
(16.5) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
83,511
|
|
83,833
|
|
(0.4) %
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
21,599
|
|
21,082
|
|
2.5 %
|
Commercial
|
|
20,478
|
|
19,189
|
|
6.7 %
|
Industrial
|
|
19,131
|
|
17,667
|
|
8.3 %
|
Miscellaneous
|
|
578
|
|
558
|
|
3.6 %
|
Total Retail (b)
|
|
61,786
|
|
58,496
|
|
5.6 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
1,723
|
|
1,692
|
|
1.8 %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
63,509
|
|
60,188
|
|
5.5 %
|
|
|
(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