尽管在过去一年多的时间里，有关"AI尽头是电力"的说法早已在业内广为流传。不过对于有望在这轮AI 热潮中大为受益的美国电力企业而言，眼下其实也有一个挥之不去的"烦恼"："幽灵数据中心"太多！ 没错，眼下全美在建或拟建的数据中心，都正迫切寻求接入美国电网。但最终，究竟有多少数据中心在 某一地区落地？它们又将消耗多少电力？许多问题的答案其实并不明朗。 因而，虽然电力公司看到了人工智能领域带来的巨大机遇，但也意识到不少拟建项目可能永远都不会落 地——它们将这些"八字可能最终都不会有一撇"的数据中心称为"幽灵数据中心"(phantom data centers)。 电网接入申请"真真假假" "其中很多确实是真实需求的，但究竟有多少？"美国最大非营利性电力公用事业协会——大型公共电力 委员会主席Tom Falcone问道。 电力公司不愿担风险 目前，不少美国电力公司并不愿承担过度建设发电厂或输电线路的风险。 因为若人工智能热潮被过度炒作，或科技行业最终所需电力低于预期，其他客户将被迫承担基础设施成 本。美国劳工部数据显示，过去一年全美电价已上涨了5.5%，涨幅超过了通胀率。 多家美国公用事业公司近来已纷纷报告称，潜在数 ...

It has been about a month since the last earnings report for American Electric Power (AEP) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AEP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Americ ...

Core Insights - Soros Fund Management reported a total market value of $7.97 billion for Q2 2025, up from $6.70 billion in the previous quarter, reflecting a 19% increase [1][2] - The fund added 80 new stocks and increased holdings in 60 stocks, while reducing positions in 45 stocks and completely selling out of 87 stocks [1][2] Holdings Overview - The top ten holdings account for 28.11% of the total market value [1][2] - The largest position is in SPDR S&P 500 ETF put options (SPY.US, PUT) with approximately 537,500 shares valued at about $332 million, representing 4.17% of the portfolio, a significant increase of 168.75% from the previous quarter [3][4] - Other notable holdings include Smurfit WestRock (SW.US) with 7.48 million shares valued at approximately $323 million (4.05% of the portfolio) and First Solar call options (FSLR.US, CALL) with 1.64 million shares valued at about $271 million (3.40% of the portfolio) [3][4] Buying and Selling Activity - The top five purchases by percentage change in portfolio include Invesco QQQ Trust call options (QQQ.US, CALL), SPDR S&P 500 ETF put options (SPY.US, PUT), and Globant (GLOB.US) notes [4][6] - The top five sales by largest value include AstraZeneca (AZN.US), iShares 20+ Year Treasury ETF call options (TLT.US, CALL), and SPDR S&P 500 ETF (SPY.US) [5][6]

Group 1 - Hope Utilities has entered into an agreement to construct a natural gas pipeline for a fuel cell project by American Electric Power, aimed at powering a data center in central Ohio [1][2] - The pipeline, to be built and maintained by Northeast Ohio Natural Gas Corporation, is expected to be operational by October 2026, providing necessary capabilities to meet customer requirements [2] - The investment in the pipeline is part of a broader strategy to enhance economic development in Ohio through infrastructure upgrades and community investments [3] Group 2 - Hope Utilities operates natural gas and water distribution utilities across six states, serving over 200,000 customers [4] - Northeast Ohio Natural Gas Corporation has been providing natural gas service to more than 36,000 customers in 31 Ohio counties since 1986 [5]

FORT WAYNE, Ind., Aug. 4, 2025 /PRNewswire/ -- Indiana Michigan Power (I&M), an American Electric Power (Nasdaq: AEP) company, recently filed a special, joint contract with Google, designed to support I&M's capacity needs through clean generation and use of a Demand Response structure. This special contract, which is the result of collaborative efforts between the two organizations, further supports I&M's ability to provide reliable and affordable service for all customers as communities continue to experie ...

Total Revenues AEP's revenues of $5.09 billion rose 11.1% from the year-ago quarter's level of $4.58 billion. The top line also beat the Zacks Consensus Estimate of $4.94 billion by 2.9%. AEP's Segmental Performance Key Takeaways American Electric Power Company, Inc. (AEP) reported second-quarter 2025 operating earnings per share (EPS) of $1.43, which beat the Zacks Consensus Estimate of $1.28 by 11.7%. The bottom line inched up 14.4% from $1.25 recorded in the year-ago quarter. The company reported GAAP ea ...

Core Insights - American Electric Power (AEP) reported a revenue of $5.09 billion for the quarter ended June 2025, marking an 11.1% year-over-year increase and exceeding the Zacks Consensus Estimate of $4.94 billion by 2.92% [1] - The earnings per share (EPS) for the same period was $1.43, up from $1.25 a year ago, representing an EPS surprise of 11.72% against the consensus estimate of $1.28 [1] Financial Performance Metrics - Total Energy Sales for Vertically Integrated Utilities reached 25,276 GWh, slightly below the two-analyst average estimate of 25,341.73 GWh [4] - Total Energy Sales for Transmission & Distribution Utilities was 25,025 GWh, exceeding the average estimate of 24,608.63 GWh [4] - Total Energy Sales for Wholesale Electric - Transmission & Distribution Utilities was 464 GWh, significantly higher than the estimated 251.75 GWh [4] - Total Energy Sales for Retail Electric - Transmission & Distribution Utilities totaled 24,561 GWh, surpassing the average estimate of 24,356.88 GWh [4] - Operating Earnings (non-GAAP) for Vertically Integrated Utilities were $296.7 million, above the average estimate of $284.81 million [4] - Operating Earnings (non-GAAP) for Transmission & Distribution Utilities was $224.1 million, slightly below the average estimate of $225.77 million [4] - Operating Earnings (non-GAAP) for Generation & Marketing reached $91.7 million, significantly higher than the average estimate of $40.57 million [4] - Operating Earnings (GAAP) for Vertically Integrated Utilities were $432.7 million, well above the average estimate of $259.08 million [4] Stock Performance - AEP shares have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Part I. FINANCIAL INFORMATION [Management's Discussion and Analysis of Financial Condition and Results of Operations (AEP Consolidated)](index=13&type=section&id=AMERICAN%20ELECTRIC%20POWER%20COMPANY%2C%20INC.%20AND%20SUBSIDIARY%20COMPANIES%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) AEP's Q2 and H1 2025 earnings significantly increased, driven by a favorable FERC NOLC order, rate proceedings, and higher sales, supported by strategic portfolio management and robust liquidity [Executive Overview](index=13&type=section&id=EXECUTIVE%20OVERVIEW) AEP's GAAP earnings significantly increased in Q2 and H1 2025, driven by a favorable FERC NOLC order, rate proceedings, and higher sales volumes AEP Consolidated Earnings Performance (GAAP) | Period | 2025 Earnings (in billions) | 2024 Earnings (in millions) | Change (in millions) | Key Drivers | | :--- | :--- | :--- | :--- | :--- | | **Q2** | $1.2 | $340 | $860 | Favorable FERC NOLC order, Favorable rate proceedings | | **H1** | $2.0 | $1,300 | $700 | Favorable FERC NOLC order, Increased sales volumes, Favorable rate proceedings | Reconciliation of AEP GAAP Earnings to Operating Earnings (Q2) | (in billions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Reported GAAP Earnings** | **$1.23** | **$340.3** | | Mark-to-Market Impact | $20.0 | $(7.2) | | FERC NOLC Order | $(480.1) | — | | Provision for Refund - Turk Plant | — | $126.4 | | Severance Charges | — | $93.6 | | Federal EPA CCR Rule | — | $110.7 | | Other Specified Items | — | $(1.4) | | **Operating Earnings** | **$765.7** | **$662.0** | Reconciliation of AEP GAAP Earnings to Operating Earnings (H1) | (in billions) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Reported GAAP Earnings** | **$2.03** | **$1.34** | | Mark-to-Market Impact | $6.0 | $(59.0) | | FERC NOLC Order | $(480.1) | — | | Impact of NOLC on Retail Ratemaking | — | $(259.6) | | Provision for Refund - Turk Plant | — | $126.4 | | Severance Charges | — | $93.6 | | Federal EPA CCR Rule | — | $110.7 | | Other Specified Items | $37.1 | $(23.1) | | **Operating Earnings** | **$1.59** | **$1.33** | [Recent Developments and Transactions](index=17&type=section&id=RECENT%20DEVELOPMENTS%20AND%20TRANSACTIONS) AEP's recent actions include a favorable FERC NOLC order, a **$2.78 billion** transmission asset sale, PSO's **$1.4 billion** generation acquisitions, and adapting to new legislation - A June 2025 FERC order regarding NOLCs in transmission formula rates resulted in a **$499 million** increase in Earnings Attributable to AEP Common Shareholders for Q2 and H1 2025, due to recognizing revenues for 2021-2025 and reducing Excess ADIT regulatory liabilities[37](index=37&type=chunk) - In June 2025, AEP closed a transaction for a **19.9%** noncontrolling interest in its OHTCo and IMTCo subsidiaries, receiving net cash proceeds of approximately **$2.78 billion**, which will support AEP's **$54 billion** capital plan for 2025-2029[44](index=44&type=chunk) PSO New Generation Acquisitions (Q2 2025) | Plant Name | Fuel Type | Generating Capacity (MW) | Total Cost (in billions) | | :--- | :--- | :--- | :--- | | Green Country | Natural Gas | 795 | $1.4 (total for all three) | | Pixley | Solar | 189 | | | Flat Ridge IV | Wind | 135 | | - New legislation was enacted in Ohio (HB 15), Texas (HB 5247), and Oklahoma (SB 998), altering rate-setting mechanisms, establishing capital expenditure tracking, and allowing for deferred cost recovery, while federal tax legislation (OBBBA) modified renewable tax credits and made bonus depreciation permanent for non-regulated entities[49](index=49&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - AEP has received regulatory approvals to acquire approximately **1,979 MW** of owned renewable generation facilities for about **$4.7 billion** and has active RFPs for an additional **7,700 MW** of generation to meet rising customer demand[74](index=74&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Results of Operations](index=36&type=section&id=RESULTS%20OF%20OPERATIONS) AEP's consolidated earnings increased to **$1.23 billion** in Q2 2025, with all segments showing growth driven by a favorable FERC NOLC order, rate cases, and higher market prices Earnings Attributable to AEP Common Shareholders by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 (in billions) | H1 2024 (in billions) | | :--- | :--- | :--- | :--- | :--- | | Vertically Integrated Utilities | $432.7 | $65.7 | $756.8 | $626.5 | | Transmission and Distribution Utilities | $223.9 | $146.8 | $388.5 | $297.1 | | AEP Transmission Holdco | $578.4 | $200.7 | $813.0 | $409.4 | | Generation & Marketing | $62.1 | $(4.8) | $164.5 | $132.8 | | Corporate and Other | $(71.3) | $(68.1) | $(96.8) | $(122.4) | | **Total** | **$1,225.8** | **$340.3** | **$2.03** | **$1.34** | [Vertically Integrated Utilities](index=37&type=section&id=VERTICALLY%20INTEGRATED%20UTILITIES) Vertically Integrated Utilities' Q2 2025 earnings increased to **$432.7 million**, primarily from a **$160 million** Turk Plant revenue refund reversal, higher base rates, and the FERC NOLC order - Retail revenues for the segment increased by **$287 million** in Q2 2025 compared to Q2 2024, with a major factor being a **$160 million** revenue refund provision related to the Turk Plant that negatively impacted 2024 results[132](index=132&type=chunk) - Transmission revenues rose by **$63 million** in Q2 2025, primarily due to the favorable June 2025 FERC order regarding the treatment of NOLCs in transmission formula rates[133](index=133&type=chunk) - Other Operation and Maintenance expenses increased by **$29 million**, largely due to a **$53 million** expense related to the FERC NOLC order and higher distribution costs, partially offset by a **$76 million** decrease in employee-related expenses from a 2024 voluntary severance program[133](index=133&type=chunk) [Transmission and Distribution Utilities](index=42&type=section&id=TRANSMISSION%20AND%20DISTRIBUTION%20UTILITIES) Transmission and Distribution Utilities' Q2 2025 earnings increased to **$223.9 million**, driven by higher retail revenues and a **$53 million** decrease in asset impairment charges related to the 2024 EPA CCR rule - Retail revenues increased by **$38 million** in Q2 2025, mainly due to a **$43 million** increase in base case and rider revenues and a **$24 million** increase in weather-normalized sales in Ohio[140](index=140&type=chunk) - Asset Impairments and Other Related Charges decreased by **$53 million**, primarily because of charges recorded in 2024 related to the Federal EPA's revised CCR rules[142](index=142&type=chunk) - Other Operation and Maintenance expenses rose by **$20 million**, driven by higher recoverable transmission expenses and T&D-related costs in Texas, partially offset by a **$33 million** decrease in employee expenses from the 2024 severance program[142](index=142&type=chunk) [AEP Transmission Holdco](index=47&type=section&id=AEP%20TRANSMISSION%20HOLDCO) AEP Transmission Holdco's Q2 2025 earnings surged to **$578.4 million**, primarily from a **$267 million** rise in transmission revenues due to the FERC NOLC order and investments - Transmission revenues increased by **$267 million** in Q2 2025, driven by a **$214 million** favorable impact from the June 2025 FERC order on NOLCs and a **$50 million** increase from ongoing transmission investments[147](index=147&type=chunk) - Income tax expense decreased by **$196 million**, primarily due to a **$254 million** reduction in Excess ADIT as a result of the FERC NOLC order[149](index=149&type=chunk) - Net income attributable to noncontrolling interests increased by **$61 million** due to the Midwest Transmission noncontrolling interest transaction that closed in June 2025[149](index=149&type=chunk) [Generation & Marketing](index=49&type=section&id=GENERATION%20%26%20MARKETING) Generation & Marketing reported Q2 2025 earnings of **$62.1 million**, a turnaround from a prior-year loss, driven by higher revenues from MTM hedging and market prices, and reduced asset impairment charges - Retail, Trading and Marketing revenues increased by **$92 million** in Q2 2025, primarily due to higher mark-to-market (MTM) hedging activity and higher market prices[151](index=151&type=chunk) - Asset Impairments and Other Related Charges decreased by **$76 million** compared to Q2 2024, which had included charges related to the Federal EPA's revised CCR rules[151](index=151&type=chunk) - Other Operation and Maintenance expenses decreased by **$43 million**, mainly due to renewable contract termination proceeds in 2025 and the sale of Onsite Partners in September 2024[151](index=151&type=chunk) [Corporate and Other](index=51&type=section&id=CORPORATE%20AND%20OTHER) Corporate and Other reported a slightly larger Q2 2025 loss of **$71 million**, primarily due to decreased earnings from AEP T&D Services and higher EIS reserves, partially offset by an increased income tax benefit - For the six months ended June 30, the loss decreased from **$122 million** in 2024 to **$97 million** in 2025, driven by a **$28 million** increase in income tax benefit, a **$13 million** decrease in interest expense, and an **$11 million** increase from recognizing deferred revenues[153](index=153&type=chunk) [Financial Condition](index=52&type=section&id=FINANCIAL%20CONDITION) AEP's financial condition improved with a lower debt-to-total capital ratio, **$5.6 billion** in liquidity, and **$2.25 billion** from a forward equity sale to fund its **$11.5 billion** 2025 capital plan Debt and Equity Capitalization (in billions) | Category | June 30, 2025 | % of Total | Dec 31, 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Total Debt | $46.03 | 59.8% | $45.17 | 62.6% | | AEP Common Equity | $29.87 | 38.8% | $26.94 | 37.3% | | Noncontrolling Interests | $1.10 | 1.4% | $42.3 | 0.1% | | **Total Capitalization** | **$77.00** | **100.0%** | **$72.15** | **100.0%** | Net Available Liquidity as of June 30, 2025 (in billions) | Source | Amount | | :--- | :--- | | Revolving Credit Facilities | $6.0 | | Cash and Cash Equivalents | $227.3 | | **Total Liquidity Sources** | **$6.23** | | Less: AEP Commercial Paper Outstanding | $(600.0) | | **Net Available Liquidity** | **$5.63** | - AEP forecasts approximately **$11.5 billion** of capital expenditures in 2025 and **$42.9 billion** for the four-year period from 2026 through 2029, driven by investments in transmission, distribution, and new generation[178](index=178&type=chunk) Net Cash Flow Summary (Six Months Ended June 30, in billions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | $2.67 | $2.90 | | Net Cash Flows Used for Investing Activities | $(5.35) | $(3.25) | | Net Cash Flows from Financing Activities | $2.71 | $214.4 | [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) AEP manages market risks including commodity prices, interest rates, and credit risk, with a total MTM derivative net asset value of **$430.5 million** and minimal sub-investment grade credit exposure - The total Mark-to-Market (MTM) value of derivative contract net assets increased from **$205.6 million** at year-end 2024 to **$441.9 million** as of June 30, 2025, before accounting for hedges and collateral[189](index=189&type=chunk) Counterparty Credit Exposure as of June 30, 2025 (in millions) | Counterparty Credit Quality | Net Exposure | | :--- | :--- | | Investment Grade | $547.9 | | Non-investment Grade | $3.5 | | No External Ratings (Internal Grades) | $52.3 | | **Total** | **$603.7** | - A **100 basis point** change in the benchmark interest rate on AEP's variable rate debt would impact annual pretax interest expense by **$34 million** for the six months ended June 30, 2025[200](index=200&type=chunk) [Condensed Consolidated Financial Statements (AEP Consolidated)](index=62&type=section&id=AMERICAN%20ELECTRIC%20POWER%20COMPANY%2C%20INC.%20AND%20SUBSIDIARY%20COMPANIES%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) AEP's H1 2025 consolidated financial statements show increased profitability with total revenues of **$10.55 billion** and net income of **$2.03 billion**, and a stronger balance sheet with total assets of **$107.8 billion** AEP Condensed Consolidated Financial Highlights (Six Months Ended June 30) | (in billions) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenues** | $10.55 | $9.60 | | **Operating Income** | $2.68 | $1.86 | | **Earnings Attributable to AEP Common Shareholders** | $2.03 | $1.34 | AEP Condensed Consolidated Balance Sheet Highlights (in billions) | | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $107.78 | $103.08 | | **Total Liabilities** | $76.76 | $76.05 | | **Total AEP Common Shareholders' Equity** | $29.87 | $26.94 | [AEP Texas Inc. and Subsidiaries](index=68&type=section&id=AEP%20TEXAS%20INC.%20AND%20SUBSIDIARIES) AEP Texas reported a Q2 2025 net income of **$121.1 million**, a decrease due to lower other revenues and higher O&M expenses, while H1 2025 net income increased to **$222.7 million** from higher retail revenues AEP Texas Net Income (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $121.1 | $128.4 | | **H1** | $222.7 | $208.1 | - Q2 2025 revenues decreased by **$8.4 million** year-over-year, as a **$24 million** increase in retail revenues was more than offset by a **$23 million** decrease in other revenues (due to matured securitization bonds) and a **$9 million** decrease in transmission revenues[220](index=220&type=chunk)[221](index=221&type=chunk)[223](index=223&type=chunk) - For H1 2025, total revenues increased by **$48.2 million**, primarily driven by an **$82 million** increase in retail revenues from higher base rates and favorable weather[220](index=220&type=chunk)[225](index=225&type=chunk) [AEP Transmission Company, LLC and Subsidiaries](index=77&type=section&id=AEP%20TRANSMISSION%20COMPANY%2C%20LLC%20AND%20SUBSIDIARIES) AEPTCo's Q2 2025 earnings surged to **$555.8 million**, primarily from a **$267 million** increase in transmission revenues due to the FERC NOLC order and investments, with total assets growing to **$16.4 billion** AEPTCo Earnings Attributable to Common Shareholder (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $555.8 | $175.7 | | **H1** | $767.3 | $356.9 | - The primary driver for the earnings increase was a **$267 million** rise in Q2 transmission revenues, which included a **$214 million** favorable impact from the June 2025 FERC order on NOLCs and a **$49 million** increase from continued investment[244](index=244&type=chunk) - Total Member's Equity increased to **$7.7 billion** as of June 30, 2025, from **$7.0 billion** at year-end 2024, largely due to the Midwest Transmission noncontrolling interest transaction which added **$2.78 billion** to equity[251](index=251&type=chunk) [Appalachian Power Company and Subsidiaries](index=84&type=section&id=APPALACHIAN%20POWER%20COMPANY%20AND%20SUBSIDIARIES) APCo's Q2 2025 net income increased to **$106.9 million**, driven by higher total revenues from investment and the FERC NOLC order, and H1 net income reached **$271.5 million** from increased retail revenues APCo Net Income (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $106.9 | $58.3 | | **H1** | $271.5 | $194.8 | - Q2 2025 earnings were boosted by a **$14 million** decrease in fuel and purchased power expenses and a **$26 million** decrease in income tax expense, both related to the June 2025 FERC NOLC order[265](index=265&type=chunk)[266](index=266&type=chunk) - For H1 2025, retail revenues increased by **$107 million** year-over-year, driven by higher fuel revenues (**$35 million**) and a **$34 million** increase from favorable weather (a **39%** increase in heating degree days)[266](index=266&type=chunk) [Indiana Michigan Power Company and Subsidiaries](index=93&type=section&id=INDIANA%20MICHIGAN%20POWER%20COMPANY%20AND%20SUBSIDIARIES) I&M's Q2 2025 net income significantly increased to **$124.1 million**, driven by an **$83 million** rise in retail revenues and **$57 million** from off-system sales, with H1 net income comparable to prior year at **$181.6 million** I&M Net Income (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $124.1 | $35.2 | | **H1** | $181.6 | $180.2 | - Q2 2025 retail revenues increased by **$83 million** year-over-year, primarily due to a **$35 million** increase from new base rates in Indiana and Michigan and a **$34 million** increase in weather-normalized margins[289](index=289&type=chunk) - Income tax benefit for Q2 2025 increased by **$23 million**, mainly due to a **$32 million** benefit from a reduction in Excess ADIT related to the June 2025 FERC NOLC order[290](index=290&type=chunk) [Ohio Power Company and Subsidiaries](index=104&type=section&id=OHIO%20POWER%20COMPANY%20AND%20SUBSIDIARIES) OPCo's Q2 2025 net income substantially increased to **$102.8 million**, primarily due to a **$53 million** decrease in asset impairment charges related to the 2024 EPA CCR rule, with H1 net income reaching **$165.8 million** OPCo Net Income (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $102.8 | $18.4 | | **H1** | $165.8 | $89.0 | - The primary driver for the Q2 2025 earnings increase was a **$53 million** decrease in Asset Impairments and Other Related Charges, as the prior-year period included charges for the Federal EPA's revised CCR rules[316](index=316&type=chunk) - For H1 2025, a **$30 million** estimated reduction in regulatory assets for OVEC-related purchased power costs was recorded due to new Ohio legislation (HB 15), which limited future cost recovery[316](index=316&type=chunk) [Public Service Company of Oklahoma](index=112&type=section&id=PUBLIC%20SERVICE%20COMPANY%20OF%20OKLAHOMA) PSO reported Q2 2025 net income of **$63.7 million**, driven by higher base rate revenues and a FERC NOLC order tax benefit, while H1 net income decreased to **$91.2 million** due to a prior-year IRS PLR tax benefit PSO Net Income (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $63.7 | $36.3 | | **H1** | $91.2 | $108.3 | - Q2 2025 retail revenues increased by **$11 million**, reflecting a **$36 million** rise in base rate and rider revenues, partially offset by a **$20 million** decrease from lower weather-related usage[337](index=337&type=chunk) - The decrease in H1 2025 net income was primarily due to a **$48 million** tax benefit recorded in H1 2024 related to an IRS PLR for NOLCs, which was not repeated in 2025[339](index=339&type=chunk) [Southwestern Electric Power Company Consolidated](index=121&type=section&id=SOUTHWESTERN%20ELECTRIC%20POWER%20COMPANY%20CONSOLIDATED) SWEPCo reported a significant Q2 2025 earnings turnaround to **$115.6 million** from a prior-year loss, primarily due to a **$160 million** Turk Plant revenue refund provision reversal SWEPCo Earnings (Loss) Attributable to Common Shareholder (in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | $115.6 | $(70.1) | | **H1** | $164.1 | $138.0 | - The dramatic swing in Q2 earnings was primarily due to a **$160 million** revenue refund provision recorded in Q2 2024 associated with the Turk Plant, which did not recur in 2025[360](index=360&type=chunk) - H1 2025 income tax benefit was significantly lower than in H1 2024, as the 2024 period included a **$109 million** benefit from a reduction in Excess ADIT regulatory liabilities due to an IRS PLR on NOLCs[363](index=363&type=chunk) [Notes to Condensed Financial Statements](index=132&type=section&id=INDEX%20OF%20CONDENSED%20NOTES%20TO%20CONDENSED%20FINANCIAL%20STATEMENTS%20OF%20REGISTRANTS) The notes detail rate matters, including the **$499 million** FERC NOLC order impact, environmental liabilities, PSO's **$1.4 billion** generation acquisition, the **$2.78 billion** transmission asset sale, and financing - **Rate Matters:** The company is actively engaged in numerous rate proceedings, with a key development being the June 2025 FERC order on NOLCs, which resulted in a **$499 million** earnings increase for AEP Consolidated, and several subsidiaries have pending base rate cases and securitization filings to recover costs[405](index=405&type=chunk)[491](index=491&type=chunk)[492](index=492&type=chunk) - **Acquisitions & Dispositions:** In Q2 2025, PSO acquired three generation facilities for **$1.4 billion**, and in June 2025, AEP closed the sale of a **19.9%** noncontrolling interest in its OHTCo and IMTCo transmission subsidiaries for approximately **$2.78 billion** in net proceeds[515](index=515&type=chunk)[519](index=519&type=chunk) - **Financing Activities:** In March 2025, AEP entered into forward sale agreements for **22.5 million** shares, expecting to raise approximately **$2.25 billion** by December 2026, and the company also details various long-term debt issuances and retirements across its subsidiaries during the first half of 2025[645](index=645&type=chunk)[647](index=647&type=chunk) - **Commitments & Contingencies:** AEP recorded a **$674 million** increase in Asset Retirement Obligations (ARO) in Q2 2024 due to the EPA's revised CCR Rule, and the company is managing this and other environmental compliance costs, seeking recovery through regulated rates[505](index=505&type=chunk) [Controls and Procedures](index=223&type=section&id=CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate SEC reporting, with no material changes to internal control over financial reporting during Q2 2025 - As of June 30, 2025, the principal executive and financial officers concluded that the disclosure controls and procedures are effective[725](index=725&type=chunk) - No material changes were made to the internal control over financial reporting during the second quarter of 2025[726](index=726&type=chunk) Part II. OTHER INFORMATION [Risk Factors](index=224&type=section&id=Item%201A.%20Risk%20Factors) The company updated its risk factors to include the potential adverse impact of changes in U.S. or foreign trade policies, such as tariffs, which could increase costs and negatively affect financial results - A new risk factor highlights that changes in U.S. or foreign trade policies, including tariffs and other restrictive measures, could increase costs, extend lead times, and adversely impact financial results[729](index=729&type=chunk) [Other Information](index=224&type=section&id=Item%205.%20Other%20Information) On May 15, 2025, Director Benjamin G. S. Fowke, III, and EVP Kelly J. Ferneau entered into Rule 10b5-1 trading plans for the potential sale of up to **25,000** and **10,218** shares of common stock, respectively - On May 15, 2025, Director Benjamin G. S. Fowke, III, and EVP Kelly J. Ferneau entered into Rule 10b5-1 trading plans for the potential sale of up to **25,000** and **10,218** shares of common stock, respectively[733](index=733&type=chunk)[734](index=734&type=chunk)

Financial Data and Key Metrics Changes - AEP reported the strongest ever second quarter operating earnings in its 100-year history, with operating earnings of $1.43 per share or $766 million, representing a 14% increase year-over-year from $1.25 per share in 2024 [9][27] - The company is guiding to the upper half of its 2025 operating earnings range of $5.75 to $5.95 per share, reflecting strong year-to-date results [10][39] - AEP reaffirmed its long-term operating earnings growth rate of 6% to 8% [10] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities increased to $0.56 per share, up $0.10 from the previous year, driven by rate changes and increased load from data centers [28] - The transmission and distribution utility segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains [29] - Generation and Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins [31] Market Data and Key Metrics Changes - AEP expects to have 24 gigawatts of incremental load by the end of the decade, up from 21 gigawatts, primarily driven by data centers and reshoring [12] - The company has a significant interconnection queue with approximately 190 gigawatts of additional load seeking to connect to its system, which is five times its current system size of 37 gigawatts [12][35] Company Strategy and Development Direction - AEP is executing a $54 billion capital plan and expects to announce a new five-year capital plan of approximately $70 billion, with allocations of 50% to transmission, 40% to generation, and 10% to distribution [11] - The company is focused on aligning its business with regulatory goals and has secured large load tariffs in multiple states to support economic development [14][15] - AEP is exploring innovative power solutions, including small modular reactors (SMRs) and Bloom fuel cells, to meet growing customer demands [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, citing strong regulatory support and a disciplined approach to capital allocation [10][18] - The management team highlighted the importance of safety, service, and reliability while navigating complex operational and regulatory landscapes [18][19] - AEP's leadership emphasized the need for continued collaboration with regulators to support infrastructure investments and customer affordability [20][21] Other Important Information - AEP Texas was granted approval for a significant transmission project, and the company has received positive regulatory outcomes in several states [19][23] - The company has a strong liquidity position with over $5.6 billion supported by $6 billion in credit facilities [36][37] Q&A Session Summary Question: CapEx increase and financing needs - Trevor Mihalik indicated that the company has proactively financed its existing capital plan and does not have near-term equity needs, providing flexibility for future financing [42][44] Question: ROE trajectory and impact of regulatory changes - Trevor Mihalik confirmed that the ROE is expected to increase due to the new regulatory mechanisms in Texas, potentially by 50 to 100 basis points [46][48] Question: Plans for small modular reactors (SMRs) - William J. Fehrman discussed the focus on early site permit work for SMRs, emphasizing strong regulatory support in Virginia and Indiana [52][53] Question: Ongoing impact of NOLC changes - Kate Sturgess noted that the ongoing impact from the NOLC change is expected to be around 3 cents per share annually [56][57] Question: Update on West Virginia case - William J. Fehrman provided an update that the West Virginia case is awaiting an order expected in late August or early September [59] Question: CapEx opportunities and future increases - Trevor Mihalik highlighted the tremendous growth opportunities across AEP's service territory, indicating that further increases in CapEx could be possible [64][66] Question: Data center activity and connection timelines - William J. Fehrman explained that AEP's transmission system is attractive for data centers, with wait times for connections typically ranging from five to seven years [70][71]

Financial Data and Key Metrics Changes - American Electric Power (AEP) reported the strongest second quarter operating earnings in its 100-year history, with operating earnings of $1.43 per share or $766 million, representing a 14% increase year-over-year from $1.25 per share in 2024 [9][27][28] - The company is guiding to the upper half of its 2025 operating earnings range of $5.75 to $5.95 per share, reflecting strong year-to-date results and confidence in future execution [10][40] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities increased to $0.56 per share, up $0.10 from the previous year, driven by rate changes and increased load from data centers [29] - The transmission and distribution utility segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains [29] - Generation and Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins offset by lower distributed generation margins due to the sale of the On-site Partners business [31] Market Data and Key Metrics Changes - AEP is experiencing transformative load growth across its 11-state footprint, with an increase in firm customer commitments to 24 gigawatts of incremental load by the end of the decade, up from 21 gigawatts previously reported [12][34] - The company has a significant interconnection queue of approximately 190 gigawatts of additional load seeking to connect to its system, indicating strong demand for its services [12][35] Company Strategy and Development Direction - AEP is executing a $54 billion capital plan and expects to announce a new five-year capital plan of approximately $70 billion, with allocations of 50% to transmission, 40% to generation, and 10% to distribution [11][37] - The company is focused on aligning its business with regulatory goals and has secured large load tariffs in multiple states to support economic development and infrastructure needs [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, emphasizing a culture of accountability and performance [10][26] - The company is committed to maintaining safety, service, reliability, and constructive regulatory outcomes, with significant progress made in legislative efforts and regulatory approvals [18][21] Other Important Information - AEP Texas was granted an ERCOT Permian Basin 765 kV transmission project, and several system resiliency plans received approval, reflecting collaborative efforts with regulators [19][20] - The company is exploring innovative energy solutions, including small modular reactors (SMRs) and Bloom fuel cells, to meet growing power demands [17][58] Q&A Session Summary Question: CapEx increase and financing needs - Management indicated that they have proactively financed the existing capital plan and do not foresee immediate equity needs, providing flexibility for future financing strategies [45][46][49] Question: ROE trajectory and impact of regulatory changes - Management expects an increase in ROE due to the implementation of the Unified Tracker Mechanism in Texas, which could raise ROEs by 50 to 100 basis points [52] Question: Plans for small modular reactors (SMRs) - The focus is currently on early site permit work in Virginia and Indiana, with strong regulatory support for investments [58][59] Question: Update on West Virginia case - The West Virginia case is awaiting an order expected in late August or early September, with positive engagement from stakeholders [64] Question: Future CapEx opportunities - Management sees continued opportunities for investment driven by significant load growth and economic activity across its service territory [71][72]