AMERICAN ELECTRIC POWER CO INC Q1 FY2025 earnings call

• Delivered first quarter 2025 operating earnings of $1.54 per share or $823 million. Reaffirmed 2025 operating earnings guidance range of $5.75 to $5.95 per share and long-term operating earnings growth rate of 6% to 8%. - Investing $54 billion over next five years, with potential for incremental investments of up to $10 billion. - Strong retail load growth, with commercial load growing 12.3% in first quarter 2025 compared to same period last year. Anticipate over 20 gigawatts of incremental load by 2030. - Actively managing supply chain and推进 tariff-related work in states like Ohio, Indiana, etc., with some commission approvals received. - Investing in transmission and distribution infrastructure, owns large 765kV transmission lines and awarded construction of 765kV line in Texas.

Operating earnings for the first quarter total $1.54 per share compared to $1.27 per share in 2024. Vertically integrated utilities had operating earnings of $0.66 per share, up $0.09 from a year earlier. Transmission and distribution utilities segment earned $0.36 per share, up $0.07 from last year. AEP Transmission Holdco segments contributed $0.44 per share, up $0.04 from last year. Generation and marketing produced $0.14 per share, up $0.02 from last year. Corporate and Other saw a benefit of $0.05 per share, primarily driven by the timing of income taxes.

• Reaffirmed 2025 operating earnings guidance range of $5.75 to $5.95 per share and long-term operating earnings growth rate of 6% to 8%. - $54 billion five-year capital plan with potential for incremental investments of up to $10 billion. - Maintain strong balance sheet to fund capital spending needs.

• Risk of project cancellation or postponement, although contracts have protective provisions. - Regulatory changes could impact capital recovery and customer affordability.

Q: Hey guys, good morning. Just I know West Virginia is one of the first rate cases you kind of rolled up your sleeves for, after, that prior bad outcome which obviously predated you, I guess. How are conversations going there, especially around securitization? Can you settle this before the mid June hearings?

A: Yes, really appreciate the question. We've been having first of all, at a high level really good luck with a lot of our regulatory outcomes across the system. And I'm really pleased with the work that the team has been doing to focus closer in on our local communities and our states and pushing us to do what our states want. And in the case of West Virginia, I'm excited with where we're at. The hearing is scheduled for June with the commission decision later on this year. We've incorporated securitization as an option to enhance customer affordability. We've worked with the teams there and we believe that this offers a really significant benefit to our customers by potentially reducing the impact on their bills by almost 75%. So I think there's really some interesting opportunities here because that would essentially decrease the increase we're looking for to around 3.8%. But ultimately the decision rests with the commission and we look forward to working with all of the stakeholders to achieve a favorable outcome for everyone and we'll participate in discussions as they come up. But right now overall though, I'm very, very excited with how the organization is responding in our states. And I think as you hopefully listen to all of the positive regulatory outcomes we've had over the past few months, you'll see that we're really moving in the right direction and I'm really excited about where we're at.

Q: Hey guys, good morning. Oh, well, very well, Bill. Just I know West Virginia is one of the first rate cases you kind of rolled up your sleeves for, after, that prior bad outcome which obviously predated you, I guess. How are conversations going there, especially around securitization? Can you settle this before the mid June hearings?

A: Yes, really appreciate the question. We've been having first of all, at a high level really good luck with a lot of our regulatory outcomes across the system. And I'm really pleased with the work that the team has been doing to focus closer in on our local communities and our states and pushing us to do what our states want. And in the case of West Virginia, I'm excited with where we're at. The hearing is scheduled for June with the commission decision later on this year. We've incorporated securitization as an option to enhance customer affordability. We've worked with the teams there and we believe that this offers a really significant benefit to our customers by potentially reducing the impact on their bills by almost 75%. So I think there's really some interesting opportunities here because that would essentially decrease the increase we're looking for to around 3.8%. But ultimately the decision rests with the commission and we look forward to working with all of the stakeholders to achieve a favorable outcome for everyone and we'll participate in discussions as they come up. But right now overall though, I'm very, very excited with how the organization is responding in our states. And I think as you hopefully listen to all of the positive regulatory outcomes we've had over the past few months, you'll see that we're really moving in the right direction and I'm really excited about where we're at.

Q: Hey guys, good morning. Oh, well, very well, Bill. Just I know West Virginia is one of the first rate cases you kind of rolled up your sleeves for, after, that prior bad outcome which obviously predated you, I guess. How are conversations going there, especially around securitization? Can you settle this before the mid June hearings?

A: Yes, really appreciate the question. We've been having first of all, at a high level really good luck with a lot of our regulatory outcomes across the system. And I'm really pleased with the work that the team has been doing to focus closer in on our local communities and our states and pushing us to do what our states want. And in the case of West Virginia, I'm excited with where we're at. The hearing is scheduled for June with the commission decision later on this year. We've incorporated securitization as an option to enhance customer affordability. We've worked with the teams there and we believe that this offers a really significant benefit to our customers by potentially reducing the impact on their bills by almost 75%. So I think there's really some interesting opportunities here because that would essentially decrease the increase we're looking for to around 3.8%. But ultimately the decision rests with the commission and we look forward to working with all of the stakeholders to achieve a favorable outcome for everyone and we'll participate in discussions as they come up. But right now overall though, I'm very, very excited with how the organization is responding in our states. And I think as you hopefully listen to all of the positive regulatory outcomes we've had over the past few months, you'll see that we're really moving in the right direction and I'm really excited about where we're at.

Q: Hey guys, good morning. Oh, well, very well, Bill. Just I know West Virginia is one of the first rate cases you kind of rolled up your sleeves for, after, that prior bad outcome which obviously predated you, I guess. How are conversations going there, especially around securitization? Can you settle this before the mid June hearings?

A: Yes, really appreciate the question. We've been having first of all, at a high level really good luck with a lot of our regulatory outcomes across the system. And I'm really pleased with the work that the team has been doing to focus closer in on our local communities and our states and pushing us to do what our states want. And in the case of West Virginia, I'm excited with where we're at. The hearing is scheduled for June with the commission decision later on this year. We've incorporated securitization as an option to enhance customer affordability. We've worked with the teams there and we believe that this offers a really significant benefit to our customers by potentially reducing the impact on their bills by almost 75%. So I think there's really some interesting opportunities here because that would essentially decrease the increase we're looking for to around 3.8%. But ultimately the decision rests with the commission and we look forward to working with all of the stakeholders to achieve a favorable outcome for everyone and we'll participate in discussions as they come up. But right now overall though, I'm very, very excited with how the organization is responding in our states. And I think as you hopefully listen to all of the positive regulatory outcomes we've had over the past few months, you'll see that we're really moving in the right direction and I'm really excited about where we're at.

Q: Hey guys, good morning. Oh, well, very well, Bill. Just I know West Virginia is one of the first rate cases you kind of rolled up your sleeves for, after, that prior bad outcome which obviously predated you, I guess. How are conversations going there, especially around securitization? Can you settle this before the mid June hearings?

A: Yes, really appreciate the question. We've been having first of all, at a high level really good luck with a lot of our regulatory outcomes across the system. And I'm really pleased with the work that the team has been doing to focus closer in on our local communities and our states and pushing us to do what our states want. And in the case of West Virginia, I'm excited with where we're at. The hearing is scheduled for June with the commission decision later on this year. We've incorporated securitization as an option to enhance customer affordability. We've worked with the teams there and we believe that this offers a really significant benefit to our customers by potentially reducing the impact on their bills by almost 75%. So I think there's really some interesting opportunities here because that would essentially decrease the increase we're looking for to around 3.8%. But ultimately the decision rests with the commission and we look forward to working with all of the stakeholders to achieve a favorable outcome for everyone and we'll participate in discussions as they come up. But right now overall though, I'm very, very excited with how the organization is responding in our states. And I think as you hopefully listen to all of the positive regulatory outcomes we've had over the past few months, you'll see that we're really moving in the right direction and I'm really excited about where we're at.