AEP Retains AEP Energy, Reaffirms 2024 Earnings Guidance

Core Insights - American Electric Power (AEP) will retain its retail energy business, AEP Energy, and has reaffirmed its 2024 operating earnings guidance of $5.53 to $5.73 per share, with a long-term growth rate of 6% to 7% and an FFO/Debt target of 14% to 15% [1][2] Group 1: Business Operations - AEP Energy operates as a certified competitive retail electricity and natural gas supply provider in 28 service territories across six states and Washington, D.C., serving approximately 700,000 customers [1] - The company has signed an agreement to sell its distributed resources business, AEP OnSite Partners, expecting to net around $315 million in cash after taxes and transaction fees, with the sale anticipated to close in Q3 2024, pending regulatory approvals [2] Group 2: Financial Performance - AEP's updated cash flow forecast is available for investors, and there is no change to the company's equity financing plan following the decision to retain AEP Energy [1] - The company is investing $43 billion over the next five years to enhance the electric grid's cleanliness and reliability [3] Group 3: Sustainability Goals - AEP aims for an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has set a goal to achieve net zero emissions by 2045 [3]