[Executive Summary & Key Announcements](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Announcements) [Third-Quarter 2024 Financial Highlights](index=1&type=section&id=Third-Quarter%202024%20Financial%20Highlights) American Electric Power (AEP) reported third-quarter 2024 GAAP earnings of $1.80 per share and operating earnings of $1.85 per share, showing a slight decrease in GAAP EPS but an increase in operating EPS compared to the prior year | Metric | Q3 2024 | Q3 2023 | Change | | :--------------------- | :------ | :------ | :----- | | GAAP Earnings ($M) | 959.6 | 953.7 | 5.9 | | Operating Earnings ($M)| 985.4 | 923.8 | 61.6 | | GAAP EPS ($) | 1.80 | 1.83 | (0.03) | | Operating EPS ($) | 1.85 | 1.77 | 0.08 | [2024 Earnings Guidance Update](index=1&type=section&id=2024%20Earnings%20Guidance%20Update) AEP narrowed its 2024 operating earnings guidance range, maintaining its midpoint, reflecting confidence in its year-to-date progress | Metric | 2024 Guidance Range | | :-------------------------- | :------------------ | | Operating EPS (non-GAAP) | $5.58 to $5.68 | | Midpoint | $5.63 | [New Long-Term Growth Rate and Capital Plan](index=1&type=section&id=New%20Long-Term%20Growth%20Rate%20and%20Capital%20Plan) The company announced a new long-term operating earnings growth rate of 6% to 8% and expanded its five-year capital plan to $54 billion to support reliability and demand growth - New long-term growth rate: **6% to 8%** based off of 2025 operating earnings guidance of **$5.75 to $5.95 per share**[1](index=1&type=chunk)[5](index=5&type=chunk) - Expanded five-year capital plan: **$54 billion** to support reliability and demand growth[1](index=1&type=chunk)[5](index=5&type=chunk) [CEO Commentary and Strategic Focus](index=2&type=section&id=CEO%20Commentary%20and%20Strategic%20Focus) CEO Bill Fehrman highlighted continued investments, operational excellence, and financial discipline as drivers for results. He emphasized robust growth in regulated businesses, unprecedented load growth, and recent corporate restructuring to streamline operations and improve performance - Results driven by continued investments to improve service and enhance the energy system[4](index=4&type=chunk) - Commitment to best-in-class service, operational excellence, and financial discipline[5](index=5&type=chunk) - Commercial load increased over **10%** year-over-year through Q3, with an expected average annual growth of **20%** over the next three years based on signed customer contracts[7](index=7&type=chunk) - Implemented leadership and alignment changes to streamline corporate structure and move decision-making closer to customers[9](index=9&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) [Consolidated Financial Results (GAAP & Operating)](index=1&type=section&id=Consolidated%20Financial%20Results%20%28GAAP%20%26%20Operating%29) AEP's consolidated revenue saw a slight increase in Q3 2024 and a more significant rise year-to-date. Operating earnings showed stronger growth than GAAP earnings for both periods | Metric ($ in billions) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--------------------- | :------ | :------ | :----- | :------- | :------- | :----- | | Revenue | 5.4 | 5.3 | 0.1 | 15.0 | 14.4 | 0.6 | | GAAP Earnings ($M) | 959.6 | 953.7 | 5.9 | 2,303.0 | 1,871.9 | 431.1 | | Operating Earnings ($M)| 985.4 | 923.8 | 61.6 | 2,317.8 | 2,077.6 | 240.2 | [Segment-wise Earnings Performance](index=3&type=section&id=Segment-wise%20Earnings%20Performance) The Vertically Integrated Utilities, Transmission & Distribution Utilities, and AEP Transmission Holdco segments demonstrated positive earnings growth in both GAAP and operating measures for Q3 and YTD 2024, while Generation & Marketing showed mixed results [Vertically Integrated Utilities](index=3&type=section&id=Vertically%20Integrated%20Utilities) This segment reported strong growth in both GAAP and operating earnings for Q3 and YTD 2024, contributing significantly to overall company performance | Metric ($ in millions) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--------------------- | :------ | :------ | :----- | :------- | :------- | :----- | | GAAP Earnings | 571.5 | 512.5 | 59.0 | 1,198.0 | 1,051.6 | 146.4 | | Operating Earnings | 572.4 | 520.0 | 52.4 | 1,117.5 | 1,045.6 | 71.9 | [Transmission & Distribution Utilities](index=3&type=section&id=Transmission%20%26%20Distribution%20Utilities) The Transmission & Distribution Utilities segment also showed healthy increases in both GAAP and operating earnings for Q3 and YTD 2024 | Metric ($ in millions) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--------------------- | :------ | :------ | :----- | :------- | :------- | :----- | | GAAP Earnings | 245.2 | 206.0 | 39.2 | 542.3 | 508.4 | 33.9 | | Operating Earnings | 245.2 | 206.0 | 39.2 | 610.8 | 488.2 | 122.6 | [AEP Transmission Holdco](index=3&type=section&id=AEP%20Transmission%20Holdco) AEP Transmission Holdco reported consistent growth in both GAAP and operating earnings for the third quarter and year-to-date periods | Metric ($ in millions) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--------------------- | :------ | :------ | :----- | :------- | :------- | :----- | | GAAP Earnings | 214.7 | 202.9 | 11.8 | 624.1 | 580.8 | 43.3 | | Operating Earnings | 214.7 | 202.9 | 11.8 | 632.3 | 580.9 | 51.4 | [Generation & Marketing](index=3&type=section&id=Generation%20%26%20Marketing) The Generation & Marketing segment experienced a GAAP earnings decline in Q3 2024 but a significant GAAP earnings increase year-to-date. Operating earnings showed modest growth for both periods | Metric ($ in millions) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--------------------- | :------ | :------ | :----- | :------- | :------- | :----- | | GAAP Earnings | 93.3 | 130.7 | (37.4) | 226.1 | (59.3) | 285.4 | | Operating Earnings | 99.2 | 92.8 | 6.4 | 225.6 | 204.1 | 21.5 | [All Other](index=3&type=section&id=All%20Other) The 'All Other' category reported increased losses in both GAAP and operating earnings for Q3 and YTD 2024 | Metric ($ in millions) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--------------------- | :------ | :------ | :----- | :------- | :------- | :----- | | GAAP Earnings (Loss) | (165.1) | (98.4) | (66.7) | (287.5) | (209.6) | (77.9) | | Operating Earnings (Loss)| (146.1) | (97.9) | (48.2) | (268.4) | (241.2) | (27.2) | [Reconciliation of GAAP to Operating Earnings](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Operating%20Earnings) AEP provides detailed reconciliations from GAAP earnings to operating earnings, adjusting for special items such as mark-to-market impacts, regulatory liabilities, disallowances, and severance charges, to offer a clearer view of ongoing business performance [Q3 2024 Reconciliation](index=7&type=section&id=Q3%202024%20Reconciliation) For Q3 2024, key adjustments from GAAP to operating earnings included mark-to-market impacts of commodity hedging activities and an SEC matter loss contingency | Special Item (Q3 2024) | Impact ($M) | Impact (EPS) | | :------------------------------------- | :---------- | :----------- | | Mark-to-Market Impact of Commodity Hedging Activities | 6.8 | 0.01 | | SEC Matter Loss Contingency | 19.0 | 0.04 | | Total Special Items | 25.8 | 0.05 | [Year-to-Date 2024 Reconciliation](index=9&type=section&id=Year-to-Date%202024%20Reconciliation) Year-to-date 2024 reconciliation involved several significant adjustments, including mark-to-market impacts, remeasurement of excess ADIT regulatory liability, impact of NOLC on retail rate making, and provisions related to power stations and regulatory rules | Special Item (YTD 2024) | Impact ($M) | Impact (EPS) | | :------------------------------------- | :---------- | :----------- | | Mark-to-Market Impact of Commodity Hedging Activities | (52.2) | (0.09) | | Remeasurement of Excess ADIT Regulatory Liability | (44.6) | (0.09) | | Impact of NOLC on Retail Rate Making | (259.6) | (0.50) | | Disallowance - Dolet Hills Power Station | 11.1 | 0.02 | | Provision for Refund - Turk Plant | 126.4 | 0.24 | | Sale of AEP OnSite Partners | 10.4 | 0.02 | | Severance Charges | 93.6 | 0.18 | | Federal EPA Coal Combustion Residuals Rule | 110.7 | 0.21 | | SEC Matter Loss Contingency | 19.0 | 0.04 | | Total Special Items | 14.8 | 0.03 | [Sales Data and Load Growth](index=8&type=section&id=Sales%20Data%20and%20Load%20Growth) [Third-Quarter 2024 Regulated Connected Load](index=8&type=section&id=Third-Quarter%202024%20Regulated%20Connected%20Load) In Q3 2024, Vertically Integrated Utilities saw a slight increase in total retail electric sales, driven by commercial growth, while Transmission & Distribution Utilities experienced stronger overall retail growth, particularly in the commercial sector Vertically Integrated Utilities - Retail Electric Sales (in millions of kWh) | Category | Q3 2024 | Q3 2023 | Change | | :---------- | :------ | :------ | :----- | | Residential | 8,959 | 8,975 | (0.2)% | | Commercial | 6,910 | 6,686 | 3.4% | | Industrial | 8,562 | 8,731 | (1.9)% | | Total Retail| 25,043 | 25,010 | 0.1% | Transmission & Distribution Utilities - Retail Electric Sales (in millions of kWh) | Category | Q3 2024 | Q3 2023 | Change | | :---------- | :------ | :------ | :----- | | Residential | 8,206 | 8,442 | (2.8)% | | Commercial | 9,671 | 8,574 | 12.8% | | Industrial | 6,725 | 6,601 | 1.9% | | Total Retail| 24,815 | 23,837 | 4.1% | [Year-to-Date 2024 Regulated Connected Load](index=11&type=section&id=Year-to-Date%202024%20Regulated%20Connected%20Load) For the nine months ended September 30, 2024, both Vertically Integrated Utilities and Transmission & Distribution Utilities reported positive growth in total retail electric sales, with commercial load being a significant driver, especially for T&D Utilities Vertically Integrated Utilities - Retail Electric Sales (in millions of kWh) | Category | YTD 2024 | YTD 2023 | Change | | :---------- | :------- | :------- | :----- | | Residential | 24,191 | 23,406 | 3.4% | | Commercial | 18,763 | 17,781 | 5.5% | | Industrial | 25,563 | 25,686 | (0.5)% | | Total Retail| 70,235 | 68,557 | 2.4% | Transmission & Distribution Utilities - Retail Electric Sales (in millions of kWh) | Category | YTD 2024 | YTD 2023 | Change | | :---------- | :------- | :------- | :----- | | Residential | 21,079 | 20,618 | 2.2% | | Commercial | 26,871 | 22,711 | 18.3% | | Industrial | 20,363 | 19,800 | 2.8% | | Total Retail| 68,886 | 63,694 | 8.2% | [Corporate Information](index=4&type=section&id=Corporate%20Information) [About AEP](index=4&type=section&id=About%20AEP) American Electric Power (AEP) is a major utility committed to providing reliable, affordable power, investing $54 billion from 2025-2029 to enhance service. It operates the nation's largest electric transmission system, serving 5.6 million customers across 11 states with approximately 29,000 megawatts of diverse generating capacity - Investing **$54 billion** from 2025 through 2029 to enhance service and support growing energy needs[19](index=19&type=chunk) - Operates the nation's largest electric transmission system with **40,000 line miles** and over **225,000 miles** of distribution lines[19](index=19&type=chunk) - Delivers energy to **5.6 million customers** in 11 states[19](index=19&type=chunk) - One of the nation's largest electricity producers with approximately **29,000 megawatts** of diverse generating capacity[19](index=19&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement, indicating that the report contains forward-looking statements whose actual outcomes may differ materially due to various factors. These factors include changes in economic conditions, market demand, financial market volatility, regulatory changes, extreme weather, fuel costs, and technological advancements - Actual outcomes and results may be materially different from projections due to factors such as economic conditions, electric market demand, and demographic patterns[21](index=21&type=chunk) - Risks include volatility and disruptions in financial markets, availability and cost of funds, shifting demand for electricity, and impact of extreme weather conditions[21](index=21&type=chunk) - Other factors include new legislation and government regulation, timing and resolution of regulatory decisions, changes in technology, and cyber security threats[21](index=21&type=chunk)[23](index=23&type=chunk)

News from AEP MEDIA CONTACT: ANALYSTS CONTACT: Tammy Ridout Darcy Reese Managing Director, External Communications Vice President, Investor Relations 614/716-2347 614/716-2614 FOR IMMEDIATE RELEASE AEP Reports Second-Quarter 2024 Earnings, Reaffirms Guidance • Second-quarter 2024 GAAP earnings of $0.64 per share; operating earnings of $1.25 per share • Company reaffirms 2024 operating earnings (non-GAAP) guidance of $5.53 to $5.73 per share and long-term growth rate of 6% to 7% • Strong data processing load ...

Financial Data and Key Metrics - Q2 2024 operating earnings were $1.25 per share, a $0.12 increase YoY [7] - Full-year 2024 operating earnings guidance reaffirmed at $5.53 to $5.73 per share, with a long-term earnings growth rate of 6% to 7% [7] - GAAP earnings for Q2 2024 were $0.64 per share compared to $1.01 per share in 2023 [19] - Year-to-date GAAP earnings are $2.55 per share for 2024 versus $1.78 per share in 2023 [19] - FFO to debt metric stands at 14.6% for the 12 months ended June 30th, a 40 basis point increase from the prior quarter [25] Business Line Performance - Commercial load grew 12.4% YoY in Q2 2024, driven by data center demand [9] - Transmission and distribution utility segment earned $0.41 per share, up $0.11 YoY [22] - Vertically integrated utilities segment earned $0.46 per share, down $0.05 YoY [21] - AEP transmission Holdco segment contributed $0.39 per share, up $0.01 YoY [22] - Generation and marketing produced $0.12 per share, down $0.01 YoY [22] Market Performance - Data center commitments exceed 15 gigawatts of incremental load by the end of the decade, primarily in Ohio and Texas [8][9] - Industrial sales remained resilient, particularly in Texas, driven by new customers in energy, steel, renewable energy, and semiconductors [24] - Residential load growth was weak in most territories due to inflation, except in Texas where customer count and load increased [24] Strategic Direction and Industry Competition - Focus on executing strategic priorities, including capturing growth, responding to regulators, and using innovation to mitigate inflationary pressures [6] - Filed new data center tariffs in Ohio and large load tariff modifications in Indiana and West Virginia to ensure fair cost allocation [9] - PSO announced an agreement to purchase a 795-megawatt natural gas generation facility in Oklahoma, pending regulatory approval [10] - Evaluating the impact of the EPA's Coal Combustion Residual Rule and seeking cost recovery through regulatory mechanisms [11] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of fair cost allocation for large loads and the need for long-term grid investments [8] - Expect continued growth in data center and industrial loads, particularly in Ohio, Texas, and Indiana [9][24] - Reaffirmed commitment to maintaining a strong balance sheet to support growth initiatives and capital spending [10] Other Important Information - Sale of AEP on-site partners remains on track to close in Q3 2024, with expected net proceeds of $315 million [27] - Voluntary severance program completed in Q2 2024, resulting in a $94 million expense [20] - $111 million accrual recorded for compliance costs related to the EPA's CCR rule, primarily in Ohio [20] Q&A Session Summary Question: Strategic changes under new CEO Bill Furman - Bill Furman is expected to focus on execution rather than significant strategic changes, with continuity in the current strategic direction [32] Question: Incremental CapEx and funding sources - Company plans to update CapEx and funding plans in the fall, with a focus on equity and equity-like tools, including portfolio optimization [34][35] Question: Data center load commitments and tariffs - 15 gigawatts of data center load commitments are firm, with customers required to pay for initial work under letters of agreement [51][53] - New tariffs will apply to future customers, ensuring fair cost allocation [53] Question: Residential sales trends and inflation impact - Residential sales remain weak in most territories due to inflation, with Texas being an exception due to customer growth [83][85] Question: Impact of Chevron decision on EPA and FERC regulation - Management believes the Chevron decision could be helpful in challenging EPA rules, but its impact on FERC remains uncertain [94][95] Question: Generation needs and resource adequacy - Company is proactively addressing generation needs, including the purchase of a natural gas facility in Oklahoma and ongoing RFPs for renewable and dispatchable resources [44][80]

Financial Performance - American Electric Power Company reported a significant increase in revenue, reaching $4.5 billion for the quarter, representing a 10% year-over-year growth[6]. - The company achieved a net income of $1.2 billion, which is a 15% increase compared to the same quarter last year[6]. - Earnings attributable to AEP common shareholders decreased from $521 million in Q2 2023 to $340 million in Q2 2024, primarily due to a revenue refund provision and increased operating expenses[20]. - AEP's Earnings Attributable to Common Shareholders for Q2 2024 were $340.3 million, a decrease of 34.7% from $521.2 million in Q2 2023[116]. - Net income for the six months ended June 30, 2024, was $629.0 million, compared to $540.6 million in the same period of 2023, representing an increase of 16.3%[122]. - Total revenues for the three months ended June 30, 2024, were $2,619.0 million, a decrease of 2.1% from $2,674.5 million in the same period of 2023[118]. - Operating income for the three months ended June 30, 2024, was $162.5 million, down from $396.5 million in the prior year, reflecting a decline of 59.0%[119]. - Total revenues for Q2 2024 reached $4,579.2 million, a 4.7% increase from $4,372.5 million in Q2 2023[206]. - Operating income for Q2 2024 was $683.9 million, down 21.8% from $874.7 million in Q2 2023[206]. Customer and Market Growth - Customer base expanded by 2% year-over-year, adding approximately 50,000 new customers across its service areas[6]. - Weather-normalized retail sales volumes increased by 4.0% in Q2 2024 compared to Q2 2023, with commercial sales rising by 12.4% driven by new data processor loads[23]. - AEP's weather-normalized residential sales decreased by 0.9% in Q2 2024 compared to Q2 2023, while industrial sales volumes increased by 1.1%[23]. Renewable Energy and Investments - AEP plans to invest $2 billion in renewable energy projects over the next three years, focusing on solar and wind energy developments[6]. - The company reported a 12% increase in renewable energy generation, contributing to 30% of its total energy output for the quarter[6]. - AEP has received regulatory approvals for approximately 2,811 MWs of owned renewable generation facilities, totaling about $6.6 billion[43]. - AEP's total approved renewable projects have a combined generating capacity of 3,423 MWs, reflecting the company's commitment to expanding its renewable energy portfolio[44]. Operational Efficiency and Cost Management - AEP's operational efficiency improved, with a reduction in operating expenses by 5% due to cost-cutting measures implemented in the last fiscal year[6]. - Other Operation and Maintenance expenses increased by $134 million in Q2 2024, primarily due to a $76 million rise in employee-related expenses[130]. - Depreciation and Amortization expenses increased by $29 million in Q2 2024, attributed to a higher depreciable base at APCo, I&M, and SWEPCo[131]. Regulatory and Compliance Issues - AEP is cooperating with the SEC's investigation related to HB 6, which may result in civil penalties and other remedial measures, although management does not expect a material impact on financial condition[80]. - The Federal EPA denied Gavin Power LLC's request for an extension to continue receiving CCR waste streams until May 4, 2023, asserting noncompliance with the CCR Rule[81]. - AEP's ability to recover costs for environmental compliance is critical to maintaining future net income and cash flows[86]. Debt and Financial Stability - AEP's total debt as of June 30, 2024, was $43.744 billion, with a debt-to-total capitalization ratio of 62.6%, slightly down from 63.0% at the end of 2023[162]. - Available liquidity as of June 30, 2024, was approximately $5.4 billion, including $6 billion in revolving credit facilities[163][166]. - Interest expense decreased by $21 million in Q2 2024, primarily due to lower advances from affiliates[153][157]. Environmental Goals - AEP is committed to reducing carbon emissions by 50% by 2030, aligning with federal environmental regulations and sustainability goals[6]. - AEP aims for an 80% reduction in Scope 1 GHG emissions by 2030 from a 2005 baseline and a long-term goal of net-zero Scope 1 and Scope 2 GHG emissions by 2045[96]. - AEP's total Scope 1 GHG estimated emissions in 2023 were approximately 43.4 million metric tons, reflecting a 68% reduction from the GHG Protocol[96]. Future Outlook - The company expects earnings guidance for the next quarter to be in the range of $1.00 to $1.05 per share, reflecting continued growth[6]. - AEP forecasts approximately $8.1 billion in capital expenditures for 2024 and $43 billion through 2028, focusing on transmission, generation, and regulated renewables[182].

FOR IMMEDIATE RELEASE AEP Reports Second-Quarter 2024 Earnings, Reaffirms Guidance | | AMERICAN ELECTRIC POWER | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Preliminary, unaudited | | results | | | | | | Second Quarter ended June 30, | | | | Year-to-date ended June 30, | | | | 2024 | 2023 | Variance | 2024 | 2023 | Variance | | Revenue ($ in billions): | 4.6 | 4.4 | 0.2 | 9.6 | 9.1 | 0.5 | | Earnings ($ in millions): | | | | | | | | GAAP | 340.3 | 521.2 | (180.9) | 1,343.4 | 918.2 | 425.2 | | ...

American Electric Power Company, Inc. (NASDAQ:AEP) Q1 2024 Earnings Conference Call April 30, 2024 9:00 AM ET Company Participants Darcy Reese - VP, IR Ben Fowke - Interim President, Interim CEO & Director Peggy Simmons - EVP, Utilities Charles Zebula - EVP & CFO Conference Call Participants Jeremy Tonet - JPMorgan Chase & Co. Steven Fleishman - Wolfe Research Jamieson Ward - Guggenheim Securities Durgesh Chopra - Evercore ISI Andrew Weisel - Scotiabank Carly Davenport - Goldman Sachs Group Nicholas Campane ...

Financial Performance - American Electric Power Company reported a revenue increase of 5% year-over-year, reaching $4.5 billion for Q1 2024[7]. - The company achieved a net income of $1.2 billion, reflecting a 10% increase compared to the same quarter last year[7]. - AEP's earnings attributable to common shareholders increased from $397 million in Q1 2023 to $1,003 million in Q1 2024, a growth of 152%[22]. - AEP's net income for the three months ended March 31, 2024, was $1,005.7 million, compared to $400.4 million for the same period in 2023[196]. - The net income for AEP in Q1 2024 was $562.3 million, compared to $262.2 million in Q1 2023, representing an increase of approximately 114%[107][108]. - AEP's total operating income for Q1 2024 was $470.2 million, an increase from $443.5 million in Q1 2023, showing a growth of about 6.3%[107][108]. - Total revenues for the three months ended March 31, 2024, were $5,025.7 million, an increase of 7.1% compared to $4,690.9 million in 2023[181]. - Operating income for the same period was $1,172.6 million, up from $704.8 million in 2023, reflecting a significant increase of 66.5%[181]. - Net income attributable to AEP common shareholders for Q1 2024 was $1,003.1 million, compared to $397.0 million in Q1 2023, representing a growth of 152.4%[181]. Customer Growth and Sales - Customer accounts grew by 3% year-over-year, totaling approximately 5.5 million customers across its service areas[7]. - Weather-normalized retail sales volumes increased by 2.9% in Q1 2024 compared to Q1 2023, with commercial sales rising by 10.5%[24]. - Total retail KWh sales increased to 9,260 million KWh for the three months ended March 31, 2024, compared to 8,522 million KWh in the same period of 2023, reflecting a growth of approximately 8.7%[198]. - Total KWh sales for Vertically Integrated Utilities increased to 26,882 million KWh in Q1 2024, up from 25,547 million KWh in Q1 2023, marking a growth of about 5.2%[110]. - Total KWh energy sales for Transmission and Distribution Utilities increased to 21,853 million KWh in Q1 2024 from 20,157 million KWh in Q1 2023, representing an increase of approximately 8.4%[119]. Investments and Future Plans - AEP plans to invest $2.5 billion in renewable energy projects over the next three years, aiming to increase its renewable capacity by 20%[7]. - AEP is focusing on expanding its transmission network, with a projected investment of $1.8 billion in infrastructure improvements by 2025[7]. - AEP's planned renewable generation projects total approximately 3,423 MWs, with an investment of about $6.6 billion approved by state regulatory commissions[38]. - Management forecasts approximately $7.5 billion in capital expenditures for 2024, with an additional $35 billion projected for the period from 2025 to 2028[158]. - AEP has issued significant Requests for Proposals (RFPs) for a total of 7,405 MWs of generating capacity, with various projected in-service dates from 2026 to 2028[42]. Regulatory and Compliance Issues - AEP's financial condition is subject to risks including changes in economic conditions and electric market demand in service territories[16]. - The company is subject to regulatory changes that could impact profitability and operational costs, particularly regarding emissions[16]. - AEP is involved in ongoing litigation related to Ohio House Bill 6, which could impact future net income and cash flows[66]. - AEP received subpoenas from the SEC regarding the passage of HB 6 and is cooperating with the investigation, which may lead to civil penalties[71]. - The Federal EPA announced four major new rules in April 2024 that will impact AEP's fossil generation fleet, requiring economic feasibility evaluations for compliance investments[78]. Environmental and Emission Goals - AEP is focused on transitioning from fossil generation and building renewable generation and transmission facilities[16]. - AEP's total Scope 1 GHG estimated emissions in 2023 were approximately 44.5 million metric tons, reflecting a 67% reduction from the 2000 baseline and a 71% reduction from the 2005 baseline[86]. - AEP's ability to achieve its emission reduction goals is dependent on regulatory support, customer demand for carbon-free energy, and advancements in carbon-free generation technologies[86]. - AEP may incur significant additional costs due to compliance with the revised CCR rule, which could adversely affect net income and cash flows if cost recovery is not assured[96]. Financial Position and Liquidity - AEP's total debt and equity capitalization as of March 31, 2024, was $69.4 billion, with a debt-to-total capital ratio of 62.8%, slightly down from 63.0% at the end of 2023[138]. - AEP had approximately $3.4 billion in net available liquidity as of March 31, 2024, after accounting for outstanding commercial paper[142]. - The maximum amount of commercial paper outstanding during the first three months of 2024 was $2.9 billion, with a weighted-average interest rate of 5.62%[143]. - AEP's cash and cash equivalents at the end of the period were $281.8 million, down from $393.5 million at the end of the previous period[151]. - Total current assets decreased from $6,082.1 million on December 31, 2023, to $5,849.6 million on March 31, 2024, a decline of 3.8%[189]. Operational Efficiency - AEP's capital expenditures for the quarter were $1.1 billion, primarily directed towards grid modernization and renewable energy projects[7]. - The company reported a total MTM risk management contracts net liability of $74.3 million as of March 31, 2024, reflecting changes in fair value due to market fluctuations[167]. - Total expenses decreased to $319.6 million in Q1 2024 from $325.8 million in Q1 2023, reflecting a reduction of approximately 1.9%[206]. - Depreciation and amortization expenses increased by $11 million due to a higher depreciable base, while interest expense rose by $10 million due to higher long-term debt balances and interest rates[129].

Exhibit 99.1 News from AEP MEDIA CONTACT: ANALYSTS CONTACT: Tammy Ridout Darcy Reese Managing Director, External Communications Vice President, Investor Relations 614/716-2347 614/716-2614 FOR IMMEDIATE RELEASE AEP Reports First-Quarter 2024 Earnings, Reaffirms Guidance • First-quarter 2024 GAAP earnings of $1.91 per share; operating earnings of $1.27 per share • Company reaffirms 2024 operating earnings (non-GAAP) guidance of $5.53 to $5.73 per share and long-term growth rate of 6% to 7% • Economic develop ...

Financial Data and Key Metrics Changes - Operating earnings for 2023 were $5.25 per share, an increase from $5.09 per share in 2022, despite challenges such as unfavorable weather and higher interest costs [7][22] - GAAP earnings for Q4 2023 were $0.64 per share, down from $0.75 per share in Q4 2022, while full-year GAAP earnings were $4.26 compared to $4.51 in 2022 [20][21] - The company reaffirmed its 2024 full-year operating earnings guidance range of $5.53 to $5.73, with a long-term earnings growth rate of 6% to 7% [11][33] Business Line Data and Key Metrics Changes - Vertically Integrated Utilities segment operating earnings were $2.47 per share, down $0.09 due to unfavorable weather and higher interest expenses [22] - Transmission and Distribution Utility segment earned $1.30 per share, up $0.14 from last year, driven by increased transmission revenue and lower O&M [23] - Generation and Marketing produced $0.59 per share, up $0.09, primarily due to improved retail and wholesale power margins [24] Market Data and Key Metrics Changes - Overall retail load grew by 2.5% in 2023, exceeding the original guidance of 0.7%, with commercial sales growing by 7.8% [26] - Industrial sales increased by 1.6%, attributed to new large industrial loads, while residential load slightly declined due to increased energy efficiency [27][28] Company Strategy and Development Direction - The company is focused on simplifying and de-risking its portfolio, having completed the sale of its unregulated renewables portfolio for $1.2 billion [9] - AEP plans to continue disciplined portfolio management and is committed to achieving constructive regulatory outcomes [10][11] - The company is advancing a $43 billion 5-year capital plan, with $6.6 billion of new renewable projects approved [11][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2023 as a challenging year but emphasized confidence in the team's ability to achieve objectives and deliver reliable energy [12] - The company is optimistic about future opportunities, particularly in commercial and industrial load growth, driven by data center expansions [26][28] - Management is committed to improving regulatory strategies to achieve a forecasted regulated ROE of 9.1% [16] Other Important Information - The company has secured $312 million in rate relief in 2023 and is working on several new base rate cases across various states [14][15] - AEP's FFO to debt metric stands at 13.2% for 2023, with expectations to improve to the target range of 14% to 15% in 2024 [30] Q&A Session Summary Question: What does the company see as broken in its current strategy? - Management does not view the situation as broken but acknowledges areas for improvement, particularly in achieving constructive regulatory outcomes [35][36] Question: What are the expectations for the new CEO? - The search for a new CEO is external, with a preference for a seasoned executive in the utility industry who has regulatory success experience [42][43] Question: How does the company plan to address regulatory challenges? - Management plans to strengthen regulatory relationships and focus on execution to improve outcomes [41][66] Question: What are the opportunities related to data centers? - The biggest opportunities are in Ohio and Texas, with capital included in the 5-year plan to serve these customers [70] Question: How will the company allocate capital across jurisdictions? - The company will prioritize capital allocation based on where it can achieve the best returns while ensuring reliability and safety [80]

4t“hSaQfeu Haarrbtoer”r 2023 Earnings Statement Under the Release Presentation on Private Securities FeLibtigrautioanr Rye f2or7m, 2024 Act of 1995 Published on February 26, 2024 Darcy Reese, Vice President Investor Relations ...