Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.76 for the first quarter of 2025, a 22% increase compared to the first quarter of 2024, driven by top line growth across electric and gas utilities [5][14] - The company reaffirmed its 2025 earnings guidance range of $6.17 to $6.42 and a long-term EPS growth rate of 5% to 7% through 2029 [6][22] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw an increase of $0.33 compared to last year, driven by higher sales volumes, improved weather, and new rates [14] - Gas Utilities and Infrastructure results were up $0.08 compared to last year, primarily due to new rates at Piedmont, North Carolina [14] - The Other segment experienced a decrease of $0.08, mainly due to higher interest expenses [14] Market Data and Key Metrics Changes - Weather-normalized volumes increased by 1.8% compared to last year, aligning with the full-year projection of 1.5% to 2% [15] - Residential volumes rose over 3% in the quarter, reflecting customer growth and higher usage [16] Company Strategy and Development Direction - The company is focused on meeting growing energy demands through new generation and enhancing existing generation, including extending the operating license for the Oconee nuclear station for an additional twenty years [6][7] - A strategic partnership with GE Vernova was announced to secure up to 19 natural gas turbines, aimed at timely delivery of critical infrastructure [10] - The company plans to file a merger application for its DC and DEP utilities later this year, which is expected to create significant customer savings and operational flexibility [11][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook, citing strong fundamentals and visibility to growth for years to come [12][13] - The company anticipates load growth to accelerate beginning in 2027 as economic development projects come online [16] - Management noted a cautious stance among industrial customers due to economic and policy uncertainties, but no immediate changes to production schedules were observed [61] Other Important Information - The company invested over $3 billion in capital during the quarter and is on track for $15 billion for the full year [20] - The impact of tariffs on the capital plan is estimated to be about 1% to 3% over five years, with confidence in minimizing this impact [21] Q&A Session Summary Question: Incremental CapEx opportunities - Management indicated that updates on capital expenditures will be provided in February, with a stable and growing investment pipeline [28][30] Question: Specificity around credit metrics - Management plans to provide more defined targeted ranges for credit metrics in the next cycle in February [33] Question: Cadence of adding signed deals - Management confirmed that the one gigawatt signed is part of a robust pipeline and is being actively worked through the process [40] Question: Financial implications of the merger - The merger is expected to generate over a billion dollars in savings for customers, focusing on operational efficiencies and reduced regulatory proceedings [51][52] Question: Size of one gigawatt signing - The one gigawatt signing involves two customers [55] Question: Outlook on tax credits and renewables - Management emphasized the importance of nuclear tax credits and their role in reducing customer bills, while advocating for their transferability [60] Question: Impact of economic uncertainty on industrial customers - Management noted a cautious stance among industrial customers but no immediate changes to their production schedules [61]

Financial Data and Key Metrics Changes - The company reported first quarter 2025 operating earnings of $1.54 per share, totaling $823 million, which is a 20% increase compared to the same period in 2024 [9][24] - The company reaffirmed its 2025 operating earnings guidance range of $5.75 to $5.95 per share, with a long-term operating earnings growth rate of 6% to 8% [9][39] - GAAP earnings for the first quarter were $1.50 per share, down from $1.91 per share in 2024, primarily due to a charge related to the write-off of deferred costs [22][23] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities were $0.66 per share, up $0.09 from the previous year, driven by favorable weather and rate changes [25] - The transmission and distribution utilities segment earned $0.36 per share, up $0.07 from last year, supported by rate changes and higher transmission revenue [25] - Generation and marketing produced $0.14 per share, up $0.02 from last year, with favorable retail and wholesale margins [26] Market Data and Key Metrics Changes - The company experienced a 12.3% growth in commercial load in the first quarter of 2025 compared to the same period last year [10] - Total retail load growth is expected to accelerate from 3% in 2024 to nearly 9% in 2025, marking the largest growth rate since the late 1960s [28] - The company anticipates annual retail load growth of between 8% to 9% through 2027, equating to approximately 52 million incremental megawatt hours [28] Company Strategy and Development Direction - The company is committed to investing $54 billion over the next five years to meet the needs of 5.6 million customers across 11 states [5][9] - The capital plan includes customer commitments for over 20 gigawatts of incremental load by 2030, driven by data center demand and economic development [11][12] - The company is focused on reducing regulatory lag and enhancing customer affordability through proactive regulatory filings and legislative support [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing significant demand for power and a robust pipeline of projects [16][20] - The company is well-positioned to participate in the electric infrastructure super cycle, with a focus on meeting increasing electric demand [16] - Management highlighted the importance of maintaining a strong balance sheet to support capital spending needs and future growth opportunities [9][36] Other Important Information - The company has secured approximately 80% of its rate-related revenue for 2025, indicating strong regulatory support [16][17] - A significant equity issuance of $2.3 billion was completed to address anticipated equity needs through 2029 [22][36] - The company is actively engaged in legislative efforts to improve recovery and customer affordability [20] Q&A Session Summary Question: How are conversations going in West Virginia regarding securitization? - Management reported positive discussions and is optimistic about achieving a favorable outcome in the upcoming hearings [42][44] Question: Are there any pullbacks from hyperscalers like Microsoft? - Management noted that despite Microsoft's delay, there is still robust demand from other customers, with over 500 existing and potential customers looking to connect to the system [46][48] Question: How does the company reconcile current sales trends against the 2025 forecast? - Management indicated that while near-term earnings impacts may be muted, the rapid addition of commercial and industrial load creates additional growth opportunities [52][54] Question: What is the impact of Ohio's new legislation on the company's regulatory strategy? - Management expressed that the new legislation supports capital investment growth and promotes timely recovery of investments, which is advantageous for the company [56][58] Question: How will the company finance the potential $10 billion upside in capital spending? - Management stated that they have already prefunded much of their equity needs and have various levers to pull, including potential asset sales and hybrid financing options [104][106]

Financial Data and Key Metrics Changes - The company reported first quarter 2025 operating earnings of $1.54 per share, totaling $823 million, which is a 20% increase compared to the same period last year [8][22] - The company reaffirmed its 2025 operating earnings guidance range of $5.75 to $5.95 per share and a long-term operating earnings growth rate of 6% to 8% [8][38] - GAAP earnings for the first quarter were $1.50 per share, down from $1.91 per share in 2024, primarily due to a charge related to the write-off of previously deferred costs [20][21] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities were $0.66 per share, up $0.09 from a year earlier, driven by favorable weather and rate changes [22] - The transmission and distribution utilities segment earned $0.36 per share, up $0.07 from last year, benefiting from rate changes and higher transmission revenue [22] - Generation and marketing produced $0.14 per share, up $0.02 from last year, with favorable retail and wholesale margins [22] Market Data and Key Metrics Changes - AEP's total retail load growth has been favorable, with commercial load growing 12.3% compared to the first quarter of last year [9] - The company expects to see annual retail load growth of between 8% to 9% through 2027, representing a significant increase in demand [27] - The company has over 500 existing and potential customers requesting to connect nearly 80 gigawatts of load to its transmission system [30] Company Strategy and Development Direction - The company is committed to investing $54 billion over the next five years to meet the needs of 5.6 million customers across 11 states [5][8] - AEP is focusing on infrastructure investments to support increasing electric demand, including plans for new generation and transmission projects [10][12] - The company is actively managing regulatory strategies to ensure fair cost allocation and protect existing customers while attracting large loads [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing significant economic development activities across its footprint [38] - The company is optimistic about achieving its 2025 commitments and maintaining a strong balance sheet to support capital spending needs [8][38] - Management highlighted the importance of regulatory developments and customer engagement in driving future growth [14][18] Other Important Information - The company has received commission approvals for large load tariffs in several states, indicating strong regulatory support for its growth initiatives [11] - AEP's first quarter earned ROE for rate-related businesses was 9.3%, up from 9.05% at year-end [15] - The company is focused on reducing regulatory lag and has made timely filings to support its financial and operational strategies [17] Q&A Session Summary Question: How are conversations going in West Virginia regarding securitization? - Management reported positive discussions and is optimistic about achieving a favorable outcome in the upcoming hearings [41][43] Question: Are there any pullbacks from hyperscalers like Microsoft? - Management noted that despite Microsoft's delay, there is still robust demand from other customers, and the overall system demand remains strong [45][46] Question: How do you reconcile current sales trends against the 2025 forecast? - Management indicated that while near-term earnings impacts may be muted, the rapid addition of commercial and industrial load creates additional growth opportunities [51][53] Question: What are the implications of shifting from ESPs to MYPs in Ohio? - Management highlighted that the new legislation supports capital investment growth and promotes timely recovery of investments, which is beneficial for the company [55][56] Question: What is the plan for financing the potential $10 billion upside? - Management stated that they have already secured equity needs through previous transactions and have various levers to pull for future financing [100][102]