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1 March Investor Meetings New York City March 3-5, 2025
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2 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories, the economic impact of increased global conflicts and trade tensions, and the adoption or expansion of economic sanctions, tariffs or trade restrictions, inflationary or deflationary interest rate trends, new legislation adopted in the states in which we operate that alters the regulatory framework or that prevents the timely recovery of costs and investments, volatility and disruptions in financial markets precipitated by any cause, including fiscal and monetary policy, turmoil related to federal budget or debt ceiling matters or instability in the banking industry; particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt, the availability and cost of funds to finance working capital and capital needs, particularly (i) if expected sources of capital, such as proceeds from the sale of assets, subsidiaries and tax credits, and anticipated securitizations do not materialize at the level anticipated, and (ii) during periods when the time lag between incurring costs and recovery is long and the costs are material, shifting demand for electricity, the impact of extreme weather conditions, natural disasters and catastrophic events such as storms, drought conditions and wildfires that pose significant risks including potential litigation and the inability to recover significant damages and restoration costs incurred, limitations or restrictions on the amounts and types of insurance available to cover losses that might arise in connection with natural disasters or operations, the cost of fuel and its transportation, the creditworthiness and performance of parties who supply and transport fuel and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel, the availability of fuel and necessary generation capacity and performance of generation plants, the ability to recover fuel and other energy costs through regulated or competitive electric rates, the ability to build or acquire generation (including from renewable sources), transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) to meet the demand for electricity at acceptable prices and terms, including favorable tax treatment, cost caps imposed by regulators and other operational commitments to regulatory commissions and customers for generation projects, and to recover all related costs, the disruption of AEP’s business operations due to impacts on economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers caused by pandemics, natural disasters or other events, new legislation, litigation or government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or modified requirements related to emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets, the impact of federal tax legislation , including potential changes to existing tax incentives, on results of operations, financial condition, cash flows or credit ratings, the risks before, during and after generation of electricity associated with the fuels used or the byproducts and wastes of such fuels, including coal ash and spent nuclear fuel, timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance, resolution of litigationor regulatory proceedings or investigation, the ability to efficiently manage and recover operation, maintenance and development project costs, prices and demand for power generated and sold at wholesale, changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation, the ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives, volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas, the impact of changing expectations and demands of customers, regulators, investors and stakeholders, including development, adoption and use of artificial intelligence by us and our third party vendors and evolving expectations related to environmental, social and governance concerns, changes in utility regulation and the allocation of costs within regional transmission organizations, including ERCOT, PJM and SPP, changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market, actions of rating agencies, including changes in the ratings of debt, the impact of volatility in the capital markets on the value of the investments held by the pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements, accounting standards periodically issued by accounting standard-setting bodies, other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, cybersecurity threats, labor strikes impacting material supply chains, global information technology disruptions and other catastrophic events, the ability to attract and retain requisite work force and key personnel. “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995 Darcy Reese, Vice President Investor Relations 614-716-2614 dlreese@aep.com Annie Pribisko, Director Investor Relations 614-716-2646 acpribisko@aep.com
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3 ~10%-12% TOTAL SHAREHOLDER RETURN 55% OF OPERATING EARNINGS FROM TRANSMISSION1 Long-term EPS growth of 6%-8% and dividend yield of 4% High growth transmission supported by predictable and transparent revenues 40K TRANSMISSION MILES 225K One of the largest distribution systems in the U.S. Nation’s largest electric transmission system 16,000 EMPLOYEES 5.6M CUSTOMERS Across the system As of December 31, 2024 Throughout 11 states DISTRIBUTION MILES Committed to financial strength supported by robust growth, customer service through innovation and achieving positive outcomes with regulatory integrity 1 Includes AEP Transmission Holdco and transmission investments in AEP operating companies. Calculated using 2025E transmission earnings of $3.20 as a percentage of the 2025 guidance midpoint of $5.85. 2 Calculated using 2025E Generation & Marketing earnings of $0.27 as a percentage of the 2025 guidance midpoint of $5.85. AEP Represents an Attractive Investment Opportunity 29GW TOTAL GENERATION Diverse generation fleet As of December 31, 2024 ~8% RATE BASE CAGR Solid rate base growth through 2029 forecast off of 2023 base 95% REGULATED ELECTRIC UTILITY2 Pure-play, integrated platform
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4 ➢ Generational load growth experienced now and into the future reflects customer commitments for approximately 20 GW of load through 2029 driven by data center demand and economic development; expect substantial retail load growth of 8%-9% annually in the 2025-2027 forecast period ➢ Unprecedented 5-year capital plan of $54B with a potential for incremental investments of up to $10B ➢ Attractive minority interest transaction on our transmission business for $2.82B provides financial flexibility at a premium valuation equivalent to issuing AEP common stock at $170/share and 2.3x rate base ➢ Healthy balance sheet and disciplined capital allocation provide a strong foundation to fund future capital growth ➢ Positive regulatory developments in 2024 set a base for constructive outcomes in 2025 Key Messages • 2025 operating earnings guidance range of $5.75-$5.95 • Long-term growth rate of 6%-8% • FFO/Debt targeted range of 14%-15% Financial Guidance
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5 Load Growth Supports Financial Strength Customer commitments for 20 GW of load through 2029 benefits all stakeholders including investors, customers and communities Load figures are billed retail sales excluding firm wholesale load. -0.7% -0.9% -1.7% -2.6% -1.4% 0.7% 0.1% 0.3% -4% -2% 0% 2% 4% Q1-24 Q2-24 Q3-24 Q4-24 2024A 2025E 2026E 2027E AEP Normalized Residential GWh Sales % Change vs. Prior Year 10.5% 12.4% 7.9% 12.3% 10.6% 23.9% 19.0% 16.1% -4% 2% 8% 14% 20% 26% Q1-24 Q2-24 Q3-24 Q4-24 2024A 2025E 2026E 2027E AEP Normalized Commercial GWh Sales % Change vs. Prior Year 0.4% 1.1% 0.5% 0.7% 0.7% 1.9% 4.0% 7.0% -4% -2% 0% 2% 4% 6% 8% Q1-24 Q2-24 Q3-24 Q4-24 2024A 2025E 2026E 2027E AEP Normalized Industrial GWh Sales % Change vs. Prior Year 2.9% 4.0% 2.1% 3.4% 3.0% 8.8% 8.4% 8.9% -4% -2% 0% 2% 4% 6% 8% 10% Q1-24 Q2-24 Q3-24 Q4-24 2024A 2025E 2026E 2027E AEP Normalized Total Retail GWh Sales % Change vs. Prior Year 2025 estimates based on forecast provided at 2024 EEI Financial Conference and adjusted to reflect 2024 actual results. Impressive growth in the commercial class reflects strong data center demand backed by customer commitments
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6 Distribution $13.4B • 25% Transmission $12.0B • 22%AEP Transmission Holdco $8.6B • 16% 100% of capital allocated to regulated businesses 34B allocated to wires 14B allocated to regulated new generation including renewables $ $ 63% 26% ~8% resulting rate base CAGR Regulated Environmental Generation $0.3B • 0% Other Generation $1.4B • 3% Nuclear Generation $0.5B • 1% Corporate $3.8B • 7% Regulated New Generation $4.4B • 8% Regulated Renewables $9.9B • 18% 54B TOTAL $ 2025-2029 Capital Forecast of $54B Executing a balanced, flexible and robust capital plan to meet customer needs; approximately 85% of the capital plan being recovered through reduced lag mechanisms On a system average, we expect rates to go up by less than 3% annually over the forecasted period Ability to quickly redeploy transmission and distribution investments ensures we deliver on our EPS growth commitments while meeting customer needs
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7 Customer-Focused Growth Capital $2.1 $6.3 $9.7 $13.7 $16.2 $18.7 $1.7 $4.0 $6.3 $8.2 $10.1 $11.9 $0.8 $2.2 $3.2 $4.4 $5.5 $7.0 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 $23 $24 $25 2024A 2025E 2026E 2027E 2028E 2029E Vertically Integrated Utilities T&D Utilities Transcos/JVs $4.6B $12.5B $31.8B $19.2B $37.6B $26.3B Cumulative change from 2023 base (in billions) 2023 RATE BASE PROXY Vertically Integrated Utilities $34.8B T&D Utilities $18.3B Transcos/JVs $12.3B TOTAL $65.4B Approximate 8% CAGR in rate base growth supports financial strength
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8 $13B $15B $16B $17B $18B $19B $15B $17B $19B $20B $22B $25B $0B $10B $20B $30B $40B $50B 2024A 2025E 2026E 2027E 2028E 2029E Transmission Delivering Significant Value Transmission Rate Base and Earnings Per Share EPS Contribution ($/Share) 2024A 2025E 2026E 2027E 2028E 2029E AEP Transmission Holdco $1.51 $1.54 $1.62 $1.69 $1.79 $1.89 Transmission Investments in AEP Operating Companies $1.48 $1.66 $1.78 $1.88 $2.00 $2.20 $2.99 $4.09 Rate base of AEP Transmission Holdco Rate base of transmission investments in AEP operating companies EPS contribution per share $3.20 $3.40 $3.57 $3.79 2025E transmission investment represents 55% of total AEP earnings, calculated using the 2025 guidance midpoint of $5.85
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9 $ in millions 2025E-2029E Cash from Operations $41,500 Plus: Net Cash Proceeds from Minority Interest Acquisition 2,800 Less: Capital Investments (54,400) Less: Dividends1 (11,050) Less: Other Investing Activities (2,300) Required Capital Market Needs $ (23,450) Less: Securitization Amortization (500) Plus: Equity Issuances – Includes $100M DRP Per Year 2,550 Debt Capital Markets Needs (New)2 $ (21,400) Debt Maturities (11,000) Total Debt Capital Market Needs $ (32,400) 1 Subject to approval by the Board of Directors. The stated target payout ratio range is 55%-65% of operating earnings. 2 Could include equity-like instruments. Actual cash flows will vary by company and jurisdiction based on regulatory outcomes. 2025-2029 Financing Plan Responsibly finance capital growth from a position of strength with 14%-15% targeted FFO/Debt
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10 March Investor Meetings New York City March 3-5, 2025 10 Appendix 1 2025-2029 Capital Forecast
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11 2025-2029 Capital Forecast: Transmission Strengthening the electric transmission grid and meeting robust demand while focusing on improved system performance, increased reliability and resiliency, and security Robust Pipeline We see opportunities to capture incremental transmission investment above the current 5-year plan; we also have an ongoing transmission investment pipeline in early development beyond 2029 Future Growth Drivers Reliability needs, load growth and transformation of the grid is driving additional capital investment needs Asset Renewal Investments $2B of annual on-system capital investment is currently required to maintain existing age profile 2025-2029 CAPEX 21 BILLION $ Asset renewal investments based on condition, performance and risk to reduce customer outages and interruption times DRIVERS New customer connections and system upgrades to facilitate load growth primarily in Indiana, Ohio and Texas Multi-driver projects on the local network addressing reliability and customer concerns Asset health monitoring, cyber-security requirements and enhanced situational awareness for grid operations ASSET REPLACEMENT GROWTH RELIABILITY TELECOM / TECHNOLOGY Transmission Investment
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12 2025-2029 Capital Forecast: Distribution Modernizing the electric distribution system to address increased needs and enhance customer satisfaction Distribution Investment Robust Pipeline Significant capital investment opportunity exists to renew the distribution system, improve reliability and resiliency, and expand operational capabilities to accommodate increased system needs Asset Renewal Investments $2B of annual on-system capital investment is currently required to maintain existing age profile 2025-2029 CAPEX Asset renewal and reliability investments including pole, conductor, cutout, station transformer and breaker replacements and automated technology DRIVERS Investments for new service, upgrades, relocation Storm restoration work to meet service obligations RELIABILITY, RESILIENCY & AUTOMATION GROWTH RESTORATION 13 BILLION $ Future Growth Drivers Electrification, higher penetration levels of distributed resources and projects to support customer growth will drive additional distribution investment opportunities
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13 2025-2029 Capital Forecast: New Generation Diversifying electric generation to support resource adequacy and affordability RFPs IN PROGRESS4 APCO I&M KPCo PSO SWEPCO 2025-2029 CAPEX 14 BILLION $ RFPs Issued May 2024 September 2024 November 2023 Wind 800 MW 4,000 MW 1,500 MW of SPP accredited capacity Solar Storage Natural Gas - Reg. Filings and Approvals Q2-25 – Q4-25 Q2-25 – Q2-26 Q1-25 ‒ Q4-25 Projected In-service Dates 2028 2028 or 2029 2027 or 2028 2025-20341 RESOURCE NEEDS 1 Resource additions are from Integrated Resource Plans (IRP) filings based on a 10-year planning horizon. 2 Investments in new generation resources will be subject to market availability of economic projects, regulatory preferences and approvals and RTO capacity requirements. 3 Natural gas additions may include peaking units and fuel switching to provide reliable, affordable and flexible power. 4 RFPs represent up-to MW capacity values; related regulatory filings will take into consideration commission preferences including owned and contracted resources. GENERATION ADDITIONS 2025-2034 (MW)1,2 SOLAR WIND STORAGE NAT. GAS3 TOTAL APCo 1,505 1,244 325 - 3,074 I&M 2,749 1,100 300 4,350 8,499 KPCo 80 - - 1,100 1,180 PSO 893 753 200 1,215 3,061 SWEPCO 973 1,198 400 2,253 4,824 TOTAL 6,200 4,295 1,225 8,918 20,638
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14 $ in millions, excludes AFUDC 2025E 2026E 2027E 2028E 2029E Total AEP Generating Company $ 9 $ 9 $ 7 $ 3 - $ 28 AEP Ohio $ 931 $ 1,004 $ 991 $ 928 $ 998 $ 4,852 AEP Texas Company $ 1,846 $ 2,044 $ 1,790 $ 1,824 $ 1,806 $ 9,310 AEP Transmission Holdco $ 1,509 $ 1,501 $ 1,795 $ 1,835 $ 1,950 $ 8,590 Appalachian Power Company1 $ 1,543 $ 1,562 $ 1,299 $ 1,832 $ 1,620 $ 7,856 Kentucky Power Company $ 203 $ 202 $ 276 $ 326 $ 343 $ 1,350 Kingsport Power Company $ 33 $ 31 $ 31 $ 32 $ 31 $ 158 Indiana Michigan Power Company $ 598 $ 1,321 $ 2,337 $ 1,501 $ 1,575 $ 7,332 Public Service Company of Oklahoma $ 2,546 $ 1,774 $ 1,115 $ 1,080 $ 830 $ 7,345 Southwestern Electric Power Company $ 2,158 $ 1,018 $ 1,469 $ 1,093 $ 1,166 $ 6,904 Other $ 126 $ 145 $ 113 $ 140 $ 140 $ 664 Total Capital Contributions $ 11,502 $ 10,611 $ 11,223 $ 10,594 $ 10,459 $ 54,389 1 Includes Wheeling Power Company. Capital plans are continuously optimized which may result in redeployment between timing, functions and companies. 2025-2029 Capital Forecast by Subsidiary
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15 Appendix 2 Earnings and Debt Summary 15 March Investor Meetings New York City March 3-5, 2025
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16 2024A VERTICALLY INTEGRATED UTILITIES TRANSMISSION AND DISTRIBUTION UTILITIES AEP TRANSMISSION HOLDCO GENERATION & MARKETING CORPORATE AND OTHER 2025E 2025E $3.19 $1.57 $1.54 $0.27 $(0.72) $5.85 $5.62/sh 2024 Actual EPS 0.56 0.06 0.03 (0.21) (0.21) $5.85/sh 2025 EPS Midpoint 2025 Operating Earnings Guidance 2025 Key Drivers Rate Changes $0.75 Trans Revenue $0.10 Normalized Sales $0.15 Weather $0.01 O&M $(0.01) Depreciation $(0.26) Net Interest $(0.10) Other Taxes $(0.07) Other $(0.01) Rate Changes $0.28 Trans Revenue $0.12 Normalized Sales $0.04 Weather $(0.02) O&M $(0.03) Depreciation $(0.13) Net Interest $(0.11) Other Taxes $(0.04) Other $(0.05) Investment/Rate Base Growth $0.12 Net Interest $(0.03) Income Tax $(0.02) Other $(0.04) Distributed Resources $(0.12) Retail $(0.04) Wholesale $(0.06) Other $0.01 O&M $0.02 Net Interest $(0.09) Income Taxes $(0.13) Other $(0.01) 2025 estimates based on forecast provided at 2024 EEI Financial Conference and adjusted to reflect 2024 actual results.
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17 Continuous Focus on O&M Efficiency O&M discipline over time amid rising costs and growing rate base helps keep customer rates affordable $1.2B $1.1B $1.1B $1.1B $1.0B $1.0B $0.9B $0.9B $3.1B $2.9B $2.5B $2.6B $3.1B $3.1B $3.4B $3.5B $0B $1B $2B $3B $4B $5B $6B 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025E Wires and Other Generation 2025E inflation gap of ~$0.9B Inflation ~4.4% Avg. 2022A – 2025E Total Non-fuel O&M Inflation Inflation ~1.5% Avg. 2018A – 2021A 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025E $3.1 $3.1 $2.7 $2.8 $3.0 $2.9 $2.8 $2.8 Untracked O&M (in billions) 42B 2018A Rate Base 78B 2025E Rate Base $ $
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18 9.9% 7.9% 4.4% 10.9% 7.6% 8.3% 8.9% 10.7% 0% 2% 4% 6% 8% 10% 12% 14% AEP OHIO APCo1 KPCo I&M PSO1 SWEPCO AEP TEXAS AEP TRANS HOLDCO 1 Base rate cases pending/order recently received. Sphere size is based on each company’s relative equity balance. Focused on improving earned returns while keeping in mind customer affordability Regulated Returns Twelve Months Ended 12/31/2024 Earned ROE’s – Total Regulated ROE was 9.05% (non-GAAP operating earnings, not weather normalized)
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19 Current Rate Case Activity APCo – Virginia Docket # PUR-2024-00024 Filing Date 3/29/2024 Requested Rate Base $3.2B Requested ROE 10.8% Cap Structure 51.3%D / 48.7%E Gross Revenue Increase $78M (Less $31M non earnings adj on veg mgt and gen consumables exp) Net Revenue Increase $47M Test Year 12/31/2023 Commission Order Summary Commission Order 11/20/2024 Effective Date 01/01/2025 ROE 9.75% Cap Structure 51.8%D / 48.2%E Net Revenue Increase $10M PSO – Oklahoma Docket # PUD 2023-000086 Filing Date 1/31/2024 Requested Rate Base $4.5B Requested ROE 10.8% Cap Structure 48.9%D / 51.1%E Gross Revenue Increase $185M (Less $55M D&A) Net Revenue Increase $130M Test Year 8/31/2023 Commission Order Summary Commission Order 1/15/2025 Effective Date 10/23/2024 ROE 9.5% Cap Structure 48.9%D / 51.1%E Net Revenue Increase $70M APCo – West Virginia1 Docket # 24-0854-E-42T Filing Date 11/1/2024 Requested Rate Base $5.3B Requested ROE 10.8% Cap Structure 52%D / 48%E Gross Revenue Increase $250M (Less $62M D&A) Net Revenue Increase $188M Test Year 12/31/2023 Procedural Schedule Intervenor Testimony 4/23/2025 Rebuttal Testimony 5/23/2025 Hearing 6/17/2025 Expected Commission Order and Effective Date Q3-25 1 Filing also included a securitization option for customer rate mitigation. Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security
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20 Credit Ratings and Downgrade Thresholds Senior Unsecured Outlook Senior Unsecured Outlook Senior Unsecured Outlook American Electric Power Company, Inc. Baa2 S BBB N BBB S AEP, Inc. Short Term Rating2 P2 S A-2 S NR NR AEP Texas Inc. Baa2 N BBB+ N BBB+ S AEP Transmission Company, LLC A2 S BBB+ N A S Appalachian Power Company1 Baa1 S BBB+ N A- S Indiana Michigan Power Company1 A3 S BBB+ N A S Kentucky Power Company Baa3 S BBB N BBB+ S AEP Ohio Baa1 S BBB+ N A- S Public Service Company of Oklahoma Baa1 S BBB+ N A- S Southwestern Electric Power Company Baa2 S BBB+ N BBB+ S Transource Energy2 A2 S NR NR NR NR Moody’s S&P Fitch Company 1 In conjunction with the unenhanced VRDN remarketings, APCo and I&M both received short-term credit ratings of A-2/P2 from S&P/Moody’s. 2 NR stands for Not Rated. AEP Downgrade Threshold (on a sustained basis) Moody’s: FFO/Debt 13% S&P: FFO/Debt 13% Fitch: FFO Leverage 5.8x
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21 2025 Debt Issuances and Maturities Overview $- $350 $700 $1,050 $1,400 $1,750 $2,100 $2,450 $2,800 $3,150 AEP, Inc. AEG AEP Texas APCo/WPCo I&M KPCo AEP Ohio PSO SWEPCO Transco (millions) 2025 Maturities 2025 Expected Issuances Chart excludes pollution control bond remarketings and nuclear fuel leases; no significant issuances are planned for I&M and no significant maturities for AEP Ohio and SWEPCO in 2025. Issuances include $447M of securitization at KPCo. 1 2025 debt issuances are based on the forecast provided at the 2024 EEI Financial Conference, excluding impacts from the transmission minority interest transaction expected to close in the second half of 2025. 1
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