While Wall Street celebrated the fact that we avoided a recession in 2023, that doesn’t necessarily mean fortune will favor us again this year, thus warranting a look at utility stocks to buy. Fundamentally, the biggest bullish case for utilities centers on the natural monopoly concept.Think of all the regulations that the enterprises undergirding various utility stocks must abide by. Not just anyone can set up shop as a key resource and services provider. Beyond that point, few companies have the ability t ...

Investors hope 2024 will treat the utility sector better than 2023 did, so it is a good idea to look at the best high-yield dividend utilities stocks. By now, it’s no secret that utility stocks made up the worst-performing sector in 2023. That which goes down tends to swing back up regarding overall Market investment. Thus, investors continue to look to the utility sector as full of rebound potential in 2024.These stocks are doubly interesting for the fact that their dividend yields are particularly high at ...

In October of 2023, American Electric Power (AEP 1.36%), also known as AEP, increased its quarterly dividend by $0.05 a share, taking it from $0.83 to $0.88. That's a roughly 6% hike. What's important about that dividend move is that it lives up to a key management promise to dividend investors.Here's what you need to know.AEP is an attractive yield storyAlthough a 4.1% dividend yield may not stack up against a virtual no-risk certificate of deposit (CD) offering as much as 5%, that doesn't mean investors s ...

Electric power lines during sunset. mdworschak The utility sector is well known for its ability to pay reliably growing, above-average dividends to shareholders. On its face, it isn't hard to understand why. For one, water, electricity, and natural gas are likely never going to face the risk of becoming technologically obsolete. Second, basic utility services are a prerequisite to living a high quality of life. Thus, the demand for these services is steady no matter what is going on with the economy. Thir ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period from ____ to ____ | Commission | Registrants; | | I.R.S. Employer | | --- | --- | --- | --- | | File Number | Address and Telephone Number | States of Incorporation | Identification Nos. | | 1-3525 | AMERICAN ELECTRIC POWER CO INC. | New York | 13-4922640 | | 333-221643 | AEP TEXAS INC. | Delaware | 51-0007707 | ...

Financial Performance - The company reported a total revenue of $4.2 billion for Q2 2023, representing a 5% increase year-over-year[8]. - The net income for the quarter was $1.1 billion, which is a 10% increase compared to the same period last year[8]. - Earnings attributable to AEP common shareholders decreased from $525 million in Q2 2022 to $521 million in Q2 2023, primarily due to a decrease in weather-related sales volumes and an increase in interest expense[24]. - For the six months ended June 30, 2023, earnings attributable to AEP common shareholders decreased from $1,239 million in 2022 to $918 million in 2023, driven by similar factors as the quarterly results[25]. - AEP's earnings attributable to common shareholders for Q2 2023 were $278.1 million, down from $301.2 million in Q2 2022, representing a decrease of approximately 7.5%[142]. - The company reported a net income of $540.6 million for the six months ended June 30, 2023, compared to $602.5 million in the same period last year, a decrease of 10.3%[136]. Customer Growth and Market Expansion - Customer accounts increased by 3% to 5.5 million, indicating strong customer growth[8]. - The company plans to expand its service area into two new states by 2025, targeting an additional 1 million customers[8]. - AEP Energy, with approximately 844,000 customer accounts as of June 30, 2023, is undergoing a sale process targeted for completion in the first half of 2024[40]. Renewable Energy Initiatives - The company expects a revenue growth of 6% to 8% for the full year 2023, driven by increased demand for renewable energy[8]. - New renewable energy projects are expected to add 1,500 MW of capacity by the end of 2024, enhancing the company's market position[8]. - AEP is focused on transitioning from fossil generation and building renewable generation capacity, which includes obtaining necessary regulatory approvals[17]. - The Registrants have received regulatory approvals to acquire approximately 2,204 MWs of owned renewable generation facilities, totaling approximately $5.2 billion[74]. - The total approved renewable projects include 2,277 MWs, with significant contributions from solar and wind generation types[75]. - AEP plans to sell its competitive contracted renewables portfolio, which has a net book value of $1.2 billion, for $1.5 billion, expecting to close the sale in Q3 2023[38]. Operational Efficiency and Investments - The company is investing $2 billion in technology upgrades to improve operational efficiency over the next three years[8]. - The ongoing development of smart grid technology is projected to reduce operational costs by 15% over the next five years[8]. - AEP's capital investment program includes significant expenditures for pollution control technologies to comply with environmental regulations[91]. Regulatory and Legislative Challenges - The impact of federal tax legislation is expected to influence AEP's results of operations and financial condition[18]. - AEP is monitoring changes in utility regulation and the allocation of costs within regional transmission organizations (RTOs) such as ERCOT, PJM, and SPP[19]. - The Texas Supreme Court's ruling on the Turk Plant could result in a pretax net disallowance ranging from $80 million to $90 million if AEP is unable to recover certain costs[51]. - Ohio House Bill 6 (HB 6) terminated energy efficiency programs, impacting OPCo's shared savings revenues of $26 million annually[52]. Environmental Compliance and Sustainability - The company has committed to achieving net-zero carbon emissions by 2050, aligning with industry sustainability goals[8]. - AEP's total Scope 1 greenhouse gas emissions in 2022 were approximately 52.5 million metric tons CO2e, reflecting a 65% reduction from 2005 levels[103]. - AEP has adjusted its near-term CO emission reduction target to include full Scope 1 emissions and accelerated its net-zero goal to 2045[103]. - AEP's compliance with the Federal EPA's regulations is under scrutiny, with ongoing legal challenges related to state implementation plans[100]. Financial Position and Debt Management - AEP's total debt increased to $44.0 billion as of June 30, 2023, with a debt-to-total capital ratio of 64.6%, up from 62.9% at the end of 2022[178]. - Available liquidity as of June 30, 2023, was approximately $3.1 billion, including $5 billion in revolving credit facilities[180]. - AEP's credit agreements require maintaining a debt-to-total capitalization percentage below 67.5%, with the current percentage at 61.8% as of June 30, 2023[183]. Operational Challenges and Cost Management - The company anticipates continued challenges due to economic conditions, electric market demand, and demographic patterns in AEP service territories[17]. - AEP's net income and cash flows may be impacted by ongoing supply chain disruptions and inflation, which have extended lead times and increased costs[29]. - Other operation and maintenance expenses increased by $102 million for the six months ended June 30, 2023, primarily due to generation expenses and storm-related costs[147]. Sales and Revenue Trends - Weather-normalized retail sales volumes increased by 1.5% in Q2 2023 compared to Q2 2022, with commercial sales up by 7.7% due to new data center loads[27]. - Total retail KWh energy sales for the three months ended June 30, 2023, were 21,260 million KWh, down from 22,434 million KWh in the same period last year, a decline of 5.2%[138]. - For the six months ended June 30, 2023, revenues totaled $5,532.3 million, compared to $5,335.9 million in the same period of 2022, an increase of 3.7%[134].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period from ____ to ____ | --- | --- | --- | --- | |--------------------------|---------------------------------------------|-------------------------|------------------------------ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to_________ | --- | --- | --- | --- | |--------------------------|---------------------------------------------|-------------------------|-------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period from ____ to ____ | --- | --- | --- | --- | |--------------------------|---------------------------------------------|-------------------------|-------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period from ____ to ____ | --- | --- | --- | --- | |--------------------------|---------------------------------------------|-------------------------|------------------------------- ...