Summary
American Electric Power is one of the largest electric companies in the U.S. AEP is 95% regulated with generation, transmission, and distribution operations with relatively small gas operations. The company’s eight vertically integrated utilities and distribution utilities deliver electricity to more than 5.6 million customers in 11 states in the Midwest and Southeast. AEP has about 29 GW of generating capacity and 225,000 distribution lines. AEP also owns the nation’s largest electricity transmission system, with 40,000 system miles. Revenues in 2024 were $19.7 billion and transmission accounted for about 60%.
The company had been under strategic review of its energy business which ended in 2Q24. AEP also announced new senior leadership in 3Q24. The company has divested several nonregulated operations and is well positioned to drive earnings growth through investments in its regulated business, transmission improvements, and the increased use of renewables. AEP also exited the competitive generation business in 2023, but still has wholesale electricity operations. AEP has one nuclear plant and its 2024 generation mix was 40% coal, 22% nuclear, 22% natural gas, and 16% renewables. While still he
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