American Electric Power Reports Increased Earnings of $1.2 Billion in Q2 2025

**American Electric Power Reports Increased Earnings in Second Quarter 2025**

American Electric Power Company, Inc. (AEP) reported earnings attributable to common shareholders of $1.2 billion for the second quarter of 2025, a significant increase from $340 million in the same period of 2024. This surge was primarily driven by a favorable impact from a June 2025 FERC order related to the treatment of Net Operating Loss Carryforwards (NOLCs) in transmission formula rates, a revenue refund provision recorded in 2024 associated with the Turk Plant and Southwestern Electric Power Company’s (SWEPCo) 2012 Texas Base Rate Case, and an increase in operating expenses recorded in 2024 due to the Federal EPA’s revised Coal Combustion Residual (CCR) rule and a voluntary severance program. Favorable rate proceedings in AEP’s various jurisdictions also contributed to the improved financial performance.

For the six months ended June 30, 2025, AEP's earnings attributable to common shareholders reached $2.0 billion, compared to $1.3 billion for the same period in 2024. Similar to the quarterly results, the year-to-date performance benefited from the FERC order on NOLCs, the revenue refund provision, and the impact of the CCR rule and severance program. Additionally, increased sales volumes due to favorable weather conditions played a role in the higher earnings. 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.

Operationally, AEP has been active in expanding its generation portfolio and transmission infrastructure. Public Service Company of Oklahoma (PSO) acquired three power generation facilities in the second quarter of 2025 for a total of $1.4 billion, adding 1,119 MW of generating capacity. These acquisitions include the Green Country natural gas plant, the Pixley solar facility, and the Flat Ridge IV wind facility. AEP Texas is deferring approximately $25 million of eligible costs through June 2025 as a regulatory asset as a result of new legislation. Furthermore, Kentucky Power Company (KPCo) issued $478 million of securitization bonds in June 2025 to recover $500 million of regulatory assets.

Looking ahead, AEP is focused on its $54 billion capital plan for 2025-2029, which emphasizes transmission and distribution infrastructure upgrades and new generation to support anticipated load growth. The company is also pursuing regulatory approvals for approximately 1,979 MW of owned renewable generation facilities, with an estimated cost of $4.7 billion. However, AEP acknowledges potential risks, including changes in economic conditions, volatility in financial markets, and new legislation or government regulations that could impact its operations and financial performance. The company is also monitoring the potential impact of new federal tax legislation and evolving expectations related to environmental, social, and governance concerns.