American Electric Power Reports Third Quarter and Nine-Month 2025 Financial Results

**American Electric Power Reports Third Quarter and Nine-Month 2025 Results**

American Electric Power Company, Inc. (AEP) reported earnings attributable to AEP common shareholders of $972 million for the third quarter of 2025, compared to $960 million for the same period in 2024. The increase was primarily driven by investments in transmission assets, which led to higher revenues and income, as well as favorable rate proceedings across AEP's service territories. For the nine months ended September 30, 2025, earnings attributable to AEP common shareholders increased to $3.0 billion from $2.3 billion in 2024. This increase was largely due to investments in transmission assets, a favorable FERC order related to the treatment of Net Operating Loss Carryforwards (NOLCs) in transmission formula rates, a revenue refund provision recorded in 2024, increased operating expenses in 2024 related to the Federal EPA's revised Coal Combustion Residual (CCR) rule and a voluntary severance program, increased sales volumes due to favorable weather, and favorable rate proceedings. These increases were partially offset by the favorable impact from the receipt of Private Letter Rulings (PLRs) in 2024 related to the treatment of NOLCs in retail ratemaking.

AEP's operating revenue for the third quarter of 2025 was $6.01 billion, up from $5.42 billion in the third quarter of 2024. For the nine months ended September 30, 2025, operating revenue was $16.56 billion, compared to $15.03 billion for the same period in 2024. The company's capital expenditure forecast for 2025 remains at approximately $11.9 billion. For the five-year period from 2026 through 2030, AEP anticipates capital expenditures of $72 billion, focusing on transmission infrastructure, new generation resources, and distribution system reliability. AEP's customer demand, measured by sales volumes, showed an increase in commercial sales due to new data processor loads, while industrial sales growth remained slow due to elevated interest rates and tariff-related uncertainty.

Strategic developments during the quarter included the acquisition of four power generation facilities by Public Service Company of Oklahoma (PSO) for $1.7 billion, adding 1,272 MW of generating capacity. These facilities include the Green Country natural gas plant, the Pixley solar facility, and the Flat Ridge IV and V wind energy facilities. AEP also received regulatory approvals for approximately 1,826 MW of owned renewable generation facilities, totaling approximately $4.5 billion, and 1,059 MW of renewable Power Purchase Agreements (PPAs). In June 2025, AEP closed a partnership transaction, receiving $2.78 billion in cash proceeds from the sale of a 19.9% noncontrolling interest in AEP Ohio Transmission Company (OHTCo) and AEP Indiana Michigan Transmission Company (IMTCo).

Operational developments included the approval of large load/data center tariffs in several jurisdictions, designed to extend the duration of Electric Service Agreements (ESAs) and implement higher minimum demand charges. AEP Texas is implementing a Unified Tracking Mechanism (UTM) to defer costs associated with eligible transmission and distribution capital investments. The company is also managing supply chain constraints driven by international tensions, inflation, and labor shortages, which have led to extended lead times and higher prices for fuel, materials, and equipment. AEP is actively monitoring and responding to new legislation, including Ohio House Bill 15, which alters rate-setting mechanisms and eliminates the recovery of certain purchased power expenses, and federal tax legislation, including the One Big Beautiful Bill Act (OBBBA), which modifies and accelerates the phase-out of technology-neutral Production Tax Credits (PTCs) and Investment Tax Credits (ITCs).

AEP's forward-looking statements are subject to various risks and uncertainties, including changes in economic conditions, volatility in financial markets, changing demand for electricity, the availability and cost of capital, the impact of extreme weather conditions, new legislation and government regulation, and the ability to recover costs through regulated rates. The company is committed to delivering reliable, affordable power and is focused on supporting state-based clean energy mandates and decarbonization targets. AEP continues to assess aspirations to achieve net-zero Scope 1 and 2 emissions by 2045, with performance ultimately driven by the needs and desires of the states AEP serves.