AEP Reports Third-Quarter 2026 Earnings, Expands
• Reporting third-quarter GAAP and operating earnings per share of $2.18 and $2.23, respectively
• Forecasting 2026 operating earnings per share to be at or above high end of the $6.25 to $6.55 range
• Announcing $100 billion five-year capital plan, with a 13%+ rate base CAGR through 2031
• Introducing operating earnings annual growth rate of 9% to 11% from 2027 through 2031
• Expecting up to $21 billion of fixed cost offsets for residential customers from large load contracts
October 28, 2026 - American Electric Power (Nasdaq: AEP) today reported third- quarter 2026 GAAP earnings of $1,187 million or $2.18 per share, compared with GAAP earnings of $972 million or $1.82 per share in third-quarter 2025. Operating earnings for third-quarter 2026 were $1,216 million or $2.23 per share, compared with operating earnings of $963 million or $1.80 per share in third-quarter 2025. See the detailed GAAP-to-operating earnings reconciliation at the end of this news release. AEP expects full-year results to be at or above the high end of its 2026 operating earnings guidance range of $6.25 to $6.55 per share.
AEP is also announcing an expanded $100 billion five-year capital plan through 2031 and a new long-term operating earnings growth outlook as accelerating electricity demand creates significant investment opportunities across the company’s service territory. The updated capital plan is expected to support a robust 13% plus rate base compound annual growth rate (CAGR) through 2031.
AEP is further introducing an expected annual operating earnings per share growth rate of 9% to 11% from 2027 through 2031, with a greater than 10% CAGR through 2031 based off the original 2026 guidance midpoint of $6.30 per share. The company is also issuing operating earnings guidance ranges of $6.75 to $7.05 per share and $7.40 to $7.70 per share for 2027 and 2028, respectively.
“AEP is entering our next phase of growth from a position of strength,” said Bill Fehrman, AEP chairman, president and chief executive officer. “Our expanded capital plan and increased growth rate reflect the significant opportunities ahead and our ability to execute at scale to help meet rapidly growing energy needs while delivering long-term value to our customers, communities, shareholders and all other stakeholders.”
AEP’s growth strategy is designed to support both infrastructure investment and customer affordability. New manufacturers, hyperscalers and other large customers help spread fixed system costs across a broader customer base. Fully executed take-or-pay electric service agreements in AEP’s vertically 1 integrated states are now expected to generate up to $21 billion in fixed cost offsets, increased from $16 billion, for existing residential customers over the life of the contracts. The second proposed rate reduction in Indiana is a clear example of this and demonstrates how responsibly managed load growth can benefit customers while supporting the investments needed for reliable service.
“As electricity demand accelerates, AEP is committed to having new large-load customers bear the incremental system costs they create and fund the investments required to serve them,” Fehrman said. “By pairing disciplined customer agreements with strategic investments in generation, transmission and distribution, we can strengthen reliability, drive affordability for customers and bring new economic opportunities to the communities we serve.”
With 15 gigawatts (GW) of new load commitments signed during the third quarter, AEP’s incremental contracted load is expected to grow to 84 GW by 2031. Projects are only included as incremental contracted load if backed by fully executed electric service agreements or letters of agreement.
AEP’s expanded five-year capital plan of $100 billion includes significant investment needs to strengthen reliability, modernize the grid and support growing customer demand. As a result, AEP’s rate base is expected to grow to $162 billion by 2031.
Building on its position as the nation’s largest owner and operator of transmission, the company plans to invest approximately $37 billion in transmission assets as part of the new capital plan. Accordingly, AEP’s transmission rate base is expected to nearly double and approach $70 billion by 2031.
AEP also plans to invest $36 billion in generation resources across its portfolio through 2031 to meet the increased demand, which is backed by long- term customer contracts. Approximately $22 billion of capital is planned for distribution, with investments focused on increasing the reliability and resiliency of the grid. 2
(a) EPS is calculated using the weighted average basic common shares outstanding of 535 million and 544 million for the quarters ended September 30, 2025 and 2026, respectively
A full reconciliation of GAAP earnings to operating earnings is included in tables at the end of this news release.
(a) Includes AEP Generating Co., Appalachian Power, Indiana Michigan Power, Kentucky Power, Kingsport Power, Public Service Company of Oklahoma, Southwestern Electric Power Company and Wheeling Power
(c) Includes transmission-only subsidiaries and transmission-only joint ventures
(d) Includes marketing, risk management and retail activities in ERCOT, MISO, PJM and SPP, and competitive generation in PJM 3
Given the strong year-to-date performance, AEP expects full-year 2026 operating earnings to be at or above the high end of the guidance range of $6.25-$6.55 per share and introduced operating earnings guidance ranges of $6.75 to $7.05 per share for 2027 and $7.40 to $7.70 per share for 2028.
Operating earnings, which could differ from earnings reported in accordance with GAAP, exclude certain gains and losses and other specified items that management believes are not indicative of AEP’s ongoing performance. AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance at this time.
Reflecting certain items recorded through the third quarter, the estimated earnings per share on a GAAP basis would be $6.11 to $6.41 per share. See the table below for a full reconciliation of 2026 earnings guidance.
2026 EPS Guidance Reconciliation Estimated GAAP EPS Guidance $6.11 to $6.41 Mark-to-Market Impact of Commodity 0.06 Hedging Activities Impact of WVPSC Order -0.06 Pirkey Plant Partial Disallowance 0.06 Unified Tracker Mechanism Partial 0.04 Disallowance Wholesale Customer Contract Agreements 0.08 Income Tax Effect of Adjustments -0.04 Operating EPS Guidance $6.25 to $6.55
AEP’s quarterly discussion with financial analysts and investors will be broadcast live over the internet at 9 a.m. Eastern today at http://www.aep.com/webcasts. The webcast will include audio of the discussion and visuals of charts and graphics referred to by AEP management. The charts and graphics will be available for download at http://www.aep.com/webcasts.
AEP reports its financial results in accordance with GAAP. AEP supplements its reporting of financial information with certain non-GAAP financial measures, such as operating earnings and operating earnings per share. The most comparable GAAP measure to operating earnings and operating earnings per share is GAAP earnings and GAAP earnings per share, respectively.
This information is intended to enhance an investor's overall understanding of period over period financial results and provide an indication of AEP's baseline operating performance by excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this information is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting 4 of future periods. These non-GAAP financial measures are not a presentation defined under GAAP and may not be comparable to other companies' presentations. These non-GAAP measures should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP measures.
American Electric Power (Nasdaq: AEP) is committed to improving our customers’ lives with reliable, affordable power. We plan to invest $100 billion from 2027 through 2031 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation’s largest electric transmission system with approximately 40,000 line miles, along with more than 253,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 34,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunities to our service territory through economic development and community engagement. Our family of companies includes AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Ohio Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). For more information, visit aep.com.
AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP’s website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the “Email Alerts” section at https://www.aep.com/investors/. ---
MEDIA CONTACT: ANALYSTS CONTACT: Tammy Ridout Andy Gurgol Managing Director, External Vice President, Investor Relations Communications 614/716-2347 614/391-6698
This report made by the Registrants contains forward-looking statements, and for the Registrants other than Parent, this report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements in this document are presented as of the date of this document. Except to the extent required by applicable law, management undertakes no obligation to update or revise any forward-looking statement. 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’s service territory; the economic impact of increased global conflicts and trade tensions, and the adoption or expansion of economic sanctions, tariffs, trade restrictions or changes in trade policy; inflationary or deflationary interest rate trends; new, modified, repealed or suspended federal, state or local legislation, regulations, policies or executive actions that alter the regulatory framework, delay or prevent approvals or permits, affect approved or planned investments, or prevent timely recovery of costs and investments; volatility and instability in financial markets precipitated by disruptive events, including fiscal and monetary policy or uncertainty 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 (a) if expected sources of capital such as proceeds from the sale of tax credits and anticipated securitizations do not materialize or do not materialize at the level anticipated, and (b) during periods when the time lag between incurring costs and recovery is long and the costs are material; changing demand for electricity, including large load contractual commitments; the risks and uncertainties associated with wildfires, including damages caused by wildfires, the extent of each Registrant’s liability in connection with wildfires, investigations and outcomes associated with legal proceedings, demands or similar actions, inability to recover wildfire costs through insurance or through rates and the impact on financial condition and the reputation of each Registrant; the impact of extreme weather conditions, natural disasters and catastrophic events such as storms, hurricanes, wildfires and drought conditions 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, wildfires 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 SNF; the availability of fuel and necessary generation capacity and the performance of generation plants; the ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to plan for, develop, construct, acquire, or integrate a broad range of generation and energy storage resources, as well as related transmission and distribution infrastructure, including obtaining necessary regulatory approvals, permits, and incentives for which the timing is dependent upon the priorities, requirements, processes and determinations of the local policy and regulatory authorities; complying with cost caps and other regulatory or contractual requirements; and recovering associated costs and earning an appropriate return while meeting reliability, affordability, environmental, and customer ‑ service obligations; the disruption of AEP’s business operations due to impacts of economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers caused by natural disasters or other events; construction and development risks affecting completion of the current or future capital investment plans, including labor, material, equipment or parts shortages and delays, and limited availability and extended lead times for critical equipment, including large power transformers and bridging power solutions; the impact of prolonged or recurring U.S. federal government shutdowns on AEP’s operations, regulatory approvals and financial performance, including potential volatility in the capital markets which may interrupt our access to capital; new legislation, litigation or government regulation, including changes to tax laws and regulations, oversight of nuclear generation, evolving environmental standards, energy commodity trading and new or modified requirements related to emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets; the impact of tax legislation or associated Department of Treasury guidance, including potential changes to existing tax incentives, on capital plans, 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 by-products and wastes of such fuels, including coal ash and SNF; 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 litigation or regulatory proceedings or investigations; the ability to efficiently manage and recover operation, maintenance and development project costs; prices and demand for power generated and sold in wholesale markets; changes in technology, including new, developing, alternative or distributed sources of generation and energy storage; 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 AI by us, our customers and our third party vendors and evolving expectations related to sustainability; customer affordability considerations may impact regulatory recovery outcomes and future rate design; changes in utility regulation, policies, methodologies for evaluating and approving load interconnection, and the allocation of costs within RTOs including ERCOT, PJM and SPP and the impacts of potential market changes or our participation within those RTOs; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in ratings impacting the cost of debt; the impact of geopolitical developments on global energy markets, including volatility in fuel supply and pricing, power generation economics and customer demand patterns; the impact of volatility in the capital markets on the value of the investments held by the pension, OPEB and nuclear decommissioning trust funds and a captive insurance entity and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard- setting bodies; the ability to successfully defend against cybersecurity threats; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, labor strikes impacting material supply chains, global information technology disruptions and other catastrophic events; the ability to attract and retain the requisite work force and key personnel, including senior management; projected increases in demand from data centers are subject to uncertainty and may not materialize as expected, or may occur at a different pace or scale than anticipated, which could impact our load forecasts, capital investment plans, cost recovery expectations and financial results. 6
(a) EPS is calculated using the weighted average basic common shares outstanding
(c) Represents the mark‑to‑market impact of economic hedging activities which are excluded to align with the recognition of the underlying hedged exposures
(d) Represents SWEPCo’s agreements with certain existing wholesale customers under generation supply contracts, which resulted in credits to these wholesale customers that were paid in 2026
(e) Tax effect is calculated using the statutory tax rate unless otherwise noted
(a) EPS is calculated using the weighted average basic common shares outstanding
(c) Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted
(d) Represents the mark‑to‑market impact of economic hedging activities which are excluded to align with the recognition of the underlying hedged exposures
(e) Represents the reduction in regulatory assets for OVEC-related purchased power costs as a result of approved legislation in Ohio 7
American Electric Power Summary of Selected Sales Data Regulated Connected Load (Data based on preliminary, unaudited results) Three Months Ended September 30, ENERGY & DELIVERY 2025 2026 Variance SUMMARY -in millions of KWh Vertically Integrated Utilities Retail: Residential 8,842 9,631 8.9 % Commercial 7,355 8,475 15.2 % Industrial 8,552 8,619 0.8 % Miscellaneous 599 652 8.8 % Total Retail 25,348 27,377 8.0 % Wholesale (a) 4,217 5,088 20.7 % Total KWhs 29,565 32,465 9.8 % Transmission & Distribution Utilities Retail: Residential 8,256 8,726 5.7 % Commercial 12,610 14,885 18.0 % Industrial 7,009 8,084 15.3 % Miscellaneous 209 218 4.3 % Total Retail 28,084 31,913 13.6 % (b) Wholesale (c) 552 2 -99.6 % Total KWhs 28,636 31,915 11.5 %
(a) Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers
(c) Primarily Ohio’s contractually obligated purchases of OVEC power sold to PJM 8
(a) EPS is calculated using the weighted average basic common shares outstanding
(c) Represents the mark‑to‑market impact of economic hedging activities which are excluded to align with the recognition of the underlying hedged exposures
(d) Represents the impact of the WVPSC order related to the 2024 Modified Rate Base Cost surcharge update filing
(e) Represents the estimated impact of the probable, partial disallowance of the Pirkey Plant net book value in the 2025 Texas Base Rate Case
(f) Represents the estimated impact of the probable, partial disallowance of costs included in AEP Texas’ Unified Tracker Mechanism filing
(g) Represents SWEPCo’s agreements with certain existing wholesale customers under generation supply contracts, which resulted in credits to these wholesale customers that were paid in 2026
(h) Tax effect is calculated using the statutory tax rate unless otherwise noted
(a) EPS is calculated using the weighted average basic common shares outstanding
(c) Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted
(d) Represents the mark‑to‑market impact of economic hedging activities which are excluded to align with the recognition of the underlying hedged exposures
(e) Represents an adjustment to the estimated loss on the sale of AEP OnSite Partners as a result of the contractual working capital true-up
(f) Represents the reduction in regulatory assets for OVEC-related purchased power costs as a result of approved legislation in Ohio
American Electric Power Summary of Selected Sales Data Regulated Connected Load (Data based on preliminary, unaudited results) Nine Months Ended September 30, ENERGY & DELIVERY 2025 2026 Variance SUMMARY -in millions of KWh Vertically Integrated Utilities Retail: Residential 24,618 24,947 1.3 % Commercial 19,548 22,540 15.3 % Industrial 25,248 25,201 -0.2 % Miscellaneo… 1,701 1,753 3.1 % Total Retail 71,115 74,441 4.7 % Wholesale 12,451 12,183 -2.2 % (a) Total KWhs 83,566 86,624 3.7 % Transmission & Distribution Utilities Retail: Residential 21,566 21,377 -0.9 % Commercial 33,240 40,623 22.2 % Industrial 20,813 23,060 10.8 % Miscellaneo… 553 555 0.4 % Total Retail 76,172 85,615 12.4 % (b) Wholesale 1,683 901 -46.5 % (c) Total KWhs 77,855 86,516 11.1 %
(a) Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers
(c) Primarily Ohio's contractually obligated purchase of OVEC power sold to PJM 10
Full text with the tables
Exhibit 99.1
News from AEP
AEP Reports Third-Quarter 2026 Earnings, Expands
Capital Plan and Increases Growth Outlook
• Reporting third-quarter GAAP and operating earnings per share of $2.18 and
$2.23, respectively
• Forecasting 2026 operating earnings per share to be at or above high end of
the $6.25 to $6.55 range
• Announcing $100 billion five-year capital plan, with a 13%+ rate base CAGR
through 2031
• Introducing operating earnings annual growth rate of 9% to 11% from 2027
through 2031
• Projecting operating earnings CAGR of 10%+ through 2031
• Expecting up to $21 billion of fixed cost offsets for residential customers
from large load contracts
COLUMBUS, Ohio,
October 28, 2026 - American Electric Power (Nasdaq: AEP) today reported third-
quarter 2026 GAAP earnings of $1,187 million or $2.18 per share, compared with
GAAP earnings of $972 million or $1.82 per share in third-quarter 2025.
Operating earnings for third-quarter 2026 were $1,216 million or $2.23 per
share, compared with operating earnings of $963 million or $1.80 per share in
third-quarter 2025. See the detailed GAAP-to-operating earnings reconciliation
at the end of this news release. AEP expects full-year results to be at or above
the high end of its 2026 operating earnings guidance range of $6.25 to $6.55 per
share.
AEP is also announcing an expanded $100 billion five-year capital plan through
2031 and a new long-term operating earnings growth outlook as accelerating
electricity demand creates significant investment opportunities across the
company’s service territory. The updated capital plan is expected to support a
robust 13% plus rate base compound annual growth rate (CAGR) through 2031.
AEP is further introducing an expected annual operating earnings per share
growth rate of 9% to 11% from 2027 through 2031, with a greater than 10% CAGR
through 2031 based off the original 2026 guidance midpoint of $6.30 per share.
The company is also issuing operating earnings guidance ranges of $6.75 to $7.05
per share and $7.40 to $7.70 per share for 2027 and 2028, respectively.
“AEP is entering our next phase of growth from a position of strength,” said
Bill Fehrman, AEP chairman, president and chief executive officer. “Our expanded
capital plan and increased growth rate reflect the significant opportunities
ahead and our ability to execute at scale to help meet rapidly growing energy
needs while delivering long-term value to our customers, communities,
shareholders and all other stakeholders.”
Growth Supports Customer Affordability
AEP’s growth strategy is designed to support both infrastructure investment and
customer affordability. New manufacturers, hyperscalers and other large
customers help spread fixed system costs across a broader customer base. Fully
executed take-or-pay electric service agreements in AEP’s vertically
1
integrated states are now expected to generate up to $21 billion in fixed cost
offsets, increased from $16 billion, for existing residential customers over the
life of the contracts. The second proposed rate reduction in Indiana is a clear
example of this and demonstrates how responsibly managed load growth can benefit
customers while supporting the investments needed for reliable service.
“As electricity demand accelerates, AEP is committed to having new large-load
customers bear the incremental system costs they create and fund the investments
required to serve them,” Fehrman said. “By pairing disciplined customer
agreements with strategic investments in generation, transmission and
distribution, we can strengthen reliability, drive affordability for customers
and bring new economic opportunities to the communities we serve.”
Accelerating Demand Drives Diversified Capital Plan
With 15 gigawatts (GW) of new load commitments signed during the third quarter,
AEP’s incremental contracted load is expected to grow to 84 GW by 2031. Projects
are only included as incremental contracted load if backed by fully executed
electric service agreements or letters of agreement.
AEP’s expanded five-year capital plan of $100 billion includes significant
investment needs to strengthen reliability, modernize the grid and support
growing customer demand. As a result, AEP’s rate base is expected to grow to
$162 billion by 2031.
Building on its position as the nation’s largest owner and operator of
transmission, the company plans to invest approximately $37 billion in
transmission assets as part of the new capital plan. Accordingly, AEP’s
transmission rate base is expected to nearly double and approach $70 billion by
2031.
AEP also plans to invest $36 billion in generation resources across its
portfolio through 2031 to meet the increased demand, which is backed by long-
term customer contracts. Approximately $22 billion of capital is planned for
distribution, with investments focused on increasing the reliability and
resiliency of the grid.
2
AMERICAN ELECTRIC POWER
Preliminary, unaudited results
T…
Q… Y…
E… E…
S… S…
3… 2… 2… V… 3… 2… 2… Va…
──────────────────────────────────────────────────────────────────────────────
…
… 6… 6… 8… 1… 1… 1…
…
…
…
…
…
…
G… 9… 1… 2… 2… 2… -…
O… 9… 1… 2… 2… 2… 2…
(…
…
…
…
G… 1… 2… 0… 5… 5… -…
O… 1… 2… 0… 4… 5… 0…
(…
(a) EPS is calculated using the weighted average basic common shares outstanding
of 535 million and 544 million for the quarters ended September 30, 2025 and
2026, respectively
SUMMARY OF RESULTS BY SEGMENT
$ in millions, unaudited
G… 3Q 3Q Va… YTD YTD Va…
E… 25 26 25 26
V…
I… 578 697 119 1,… 1,4… 108
U…
(…
T…
&
D… 267 284 17 656 743 87
U…
(…
A…
T… 200 219 19 1,… 653 -360
H…
(…
G…
& 45 96 51 209 268 59
M…
(…
A… -1… -1… 9 -2… -333 -118
O…
T…
G… 972 1,… 215 2,… 2,7… -224
E…
O… 3Q 3Q YTD YTD
E… 25 26 Va… 25 26 Va…
(…
V…
I… 573 721 148 1,… 1,4… 267
U…
(…
T…
&
D… 259 284 25 675 760 85
U…
(…
A…
T… 200 219 19 659 653 -6
H…
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G…
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M…
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A… -1… -1… 9 -2… -333 -114
O…
T…
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E…
(…
A full reconciliation of GAAP earnings to operating earnings is included in
tables at the end of this news release.
(a) Includes AEP Generating Co., Appalachian Power, Indiana Michigan Power,
Kentucky Power, Kingsport Power, Public Service Company of Oklahoma,
Southwestern Electric Power Company and Wheeling Power
(b) Includes Ohio Power and AEP Texas
(c) Includes transmission-only subsidiaries and transmission-only joint ventures
(d) Includes marketing, risk management and retail activities in ERCOT, MISO,
PJM and SPP, and competitive generation in PJM
3
EARNINGS GUIDANCE
Given the strong year-to-date performance, AEP expects full-year 2026 operating
earnings to be at or above the high end of the guidance range of $6.25-$6.55 per
share and introduced operating earnings guidance ranges of $6.75 to $7.05 per
share for 2027 and $7.40 to $7.70 per share for 2028.
NON-GAAP FINANCIAL MEASURES
Operating earnings, which could differ from earnings reported in accordance with
GAAP, exclude certain gains and losses and other specified items that management
believes are not indicative of AEP’s ongoing performance. AEP management is not
able to forecast if any of these items will occur or any amounts that may be
reported for future periods. Therefore, AEP is not able to provide a
corresponding GAAP equivalent for earnings guidance at this time.
2026 EPS GUIDANCE RECONCILIATION
Reflecting certain items recorded through the third quarter, the estimated
earnings per share on a GAAP basis would be $6.11 to $6.41 per share. See the
table below for a full reconciliation of 2026 earnings guidance.
2026 EPS Guidance Reconciliation
Estimated GAAP EPS Guidance $6.11 to $6.41
Mark-to-Market Impact of Commodity 0.06
Hedging Activities
Impact of WVPSC Order -0.06
Pirkey Plant Partial Disallowance 0.06
Unified Tracker Mechanism Partial 0.04
Disallowance
Wholesale Customer Contract Agreements 0.08
Income Tax Effect of Adjustments -0.04
Operating EPS Guidance $6.25 to $6.55
WEBCAST
AEP’s quarterly discussion with financial analysts and investors will be
broadcast live over the internet at 9 a.m. Eastern today at
http://www.aep.com/webcasts. The webcast will include audio of the discussion
and visuals of charts and graphics referred to by AEP management. The charts and
graphics will be available for download at http://www.aep.com/webcasts.
AEP reports its financial results in accordance with GAAP. AEP supplements its
reporting of financial information with certain non-GAAP financial measures,
such as operating earnings and operating earnings per share. The most comparable
GAAP measure to operating earnings and operating earnings per share is GAAP
earnings and GAAP earnings per share, respectively.
This information is intended to enhance an investor's overall understanding of
period over period financial results and provide an indication of AEP's baseline
operating performance by excluding items that are considered by management to be
not directly related to the ongoing operations of the business. In addition,
this information is among the primary indicators management uses as a basis for
evaluating performance, allocating resources, setting incentive compensation
targets and planning and forecasting
4
of future periods. These non-GAAP financial measures are not a presentation
defined under GAAP and may not be comparable to other companies' presentations.
These non-GAAP measures should not be deemed more useful than, a substitute for,
or an alternative to the most comparable GAAP measures.
ABOUT AEP
American Electric Power (Nasdaq: AEP) is committed to improving our customers’
lives with reliable, affordable power. We plan to invest $100 billion from 2027
through 2031 to enhance service for customers and support the growing energy
needs of our communities. Our nearly 18,000 employees operate and maintain the
nation’s largest electric transmission system with approximately 40,000 line
miles, along with more than 253,000 miles of distribution lines to deliver
energy to 5.6 million customers in 11 states. AEP also is one of the nation's
largest electricity producers with approximately 34,000 megawatts of diverse
owned and contracted generating capacity. We are focused on safety and
operational excellence, creating value for our stakeholders and bringing
opportunities to our service territory through economic development and
community engagement. Our family of companies includes AEP Texas, Appalachian
Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power,
Kentucky Power, Ohio Power, Public Service Company of Oklahoma, and Southwestern
Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). For more information, visit aep.com.
WEBSITE DISCLOSURE
AEP may use its website as a distribution channel for material company
information. Financial and other important information regarding AEP is
routinely posted on and accessible through AEP’s website at
https://www.aep.com/investors/. In addition, you may automatically receive email
alerts and other information about AEP when you enroll your email address by
visiting the “Email Alerts” section at https://www.aep.com/investors/.
---
MEDIA CONTACT: ANALYSTS CONTACT:
Tammy Ridout Andy Gurgol
Managing Director, External Vice President, Investor Relations
Communications
614/716-2347 614/391-6698
5
FORWARD-LOOKING INFORMATION
This report made by the Registrants contains forward-looking statements, and for
the Registrants other than Parent, this report contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934. These matters are subject to risks and uncertainties that could cause
actual results to differ materially from those projected. Forward-looking
statements in this document are presented as of the date of this document.
Except to the extent required by applicable law, management undertakes no
obligation to update or revise any forward-looking statement. 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’s service territory; the economic impact of
increased global conflicts and trade tensions, and the adoption or expansion of
economic sanctions, tariffs, trade restrictions or changes in trade policy;
inflationary or deflationary interest rate trends; new, modified, repealed or
suspended federal, state or local legislation, regulations, policies or
executive actions that alter the regulatory framework, delay or prevent
approvals or permits, affect approved or planned investments, or prevent timely
recovery of costs and investments; volatility and instability in financial
markets precipitated by disruptive events, including fiscal and monetary policy
or uncertainty 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 (a) if expected sources of capital such as proceeds
from the sale of tax credits and anticipated securitizations do not materialize
or do not materialize at the level anticipated, and (b) during periods when the
time lag between incurring costs and recovery is long and the costs are
material; changing demand for electricity, including large load contractual
commitments; the risks and uncertainties associated with wildfires, including
damages caused by wildfires, the extent of each Registrant’s liability in
connection with wildfires, investigations and outcomes associated with legal
proceedings, demands or similar actions, inability to recover wildfire costs
through insurance or through rates and the impact on financial condition and the
reputation of each Registrant; the impact of extreme weather conditions, natural
disasters and catastrophic events such as storms, hurricanes, wildfires and
drought conditions 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, wildfires 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 SNF; the availability of fuel and
necessary generation capacity and the performance of generation plants; the
ability to recover fuel and other energy costs through regulated or competitive
electric rates; the ability to plan for, develop, construct, acquire, or
integrate a broad range of generation and energy storage resources, as well as
related transmission and distribution infrastructure, including obtaining
necessary regulatory approvals, permits, and incentives for which the timing is
dependent upon the priorities, requirements, processes and determinations of the
local policy and regulatory authorities; complying with cost caps and other
regulatory or contractual requirements; and recovering associated costs and
earning an appropriate return while meeting reliability, affordability,
environmental, and customer ‑ service obligations; the disruption of AEP’s
business operations due to impacts of economic or market conditions, costs of
compliance with potential government regulations, electricity usage, supply
chain issues, customers, service providers, vendors and suppliers caused by
natural disasters or other events; construction and development risks affecting
completion of the current or future capital investment plans, including labor,
material, equipment or parts shortages and delays, and limited availability and
extended lead times for critical equipment, including large power transformers
and bridging power solutions; the impact of prolonged or recurring U.S. federal
government shutdowns on AEP’s operations, regulatory approvals and financial
performance, including potential volatility in the capital markets which may
interrupt our access to capital; new legislation, litigation or government
regulation, including changes to tax laws and regulations, oversight of nuclear
generation, evolving environmental standards, energy commodity trading and new
or modified requirements related to emissions of sulfur, nitrogen, mercury,
carbon, soot or PM and other substances that could impact the continued
operation, cost recovery and/or profitability of generation plants and related
assets; the impact of tax legislation or associated Department of Treasury
guidance, including potential changes to existing tax incentives, on capital
plans, 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 by-products and wastes of such fuels, including coal ash and
SNF; 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 litigation or regulatory proceedings or
investigations; the ability to efficiently manage and recover operation,
maintenance and development project costs; prices and demand for power generated
and sold in wholesale markets; changes in technology, including new, developing,
alternative or distributed sources of generation and energy storage; 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 AI by us, our
customers and our third party vendors and evolving expectations related to
sustainability; customer affordability considerations may impact regulatory
recovery outcomes and future rate design; changes in utility regulation,
policies, methodologies for evaluating and approving load interconnection, and
the allocation of costs within RTOs including ERCOT, PJM and SPP and the impacts
of potential market changes or our participation within those RTOs; changes in
the creditworthiness of the counterparties with contractual arrangements,
including participants in the energy trading market; actions of rating agencies,
including changes in ratings impacting the cost of debt; the impact of
geopolitical developments on global energy markets, including volatility in fuel
supply and pricing, power generation economics and customer demand patterns; the
impact of volatility in the capital markets on the value of the investments held
by the pension, OPEB and nuclear decommissioning trust funds and a captive
insurance entity and the impact of such volatility on future funding
requirements; accounting standards periodically issued by accounting standard-
setting bodies; the ability to successfully defend against cybersecurity
threats; other risks and unforeseen events, including wars and military
conflicts, the effects of terrorism (including increased security costs),
embargoes, labor strikes impacting material supply chains, global information
technology disruptions and other catastrophic events; the ability to attract and
retain the requisite work force and key personnel, including senior management;
projected increases in demand from data centers are subject to uncertainty and
may not materialize as expected, or may occur at a different pace or scale than
anticipated, which could impact our load forecasts, capital investment plans,
cost recovery expectations and financial results.
6
…
…
…
…
…
…
…
…
…
…
… 2…
… V…
… I…
… U…
… ($ T…
… in & A… G… C…
… m… D… T… & a… E…
… u… U… H… M… O… T… (…
──────────────────────────────────────────────────────────────────────────────
…
… -b … … … … … … $ …
…
…
…
…
…
M…
I…
of -c 8 — — 6 — … …
C…
H…
A…
W…
C… -d … — — — — … …
C…
A…
I…
T…
E… -e … — — … — … …
of
A…
… … — — 5 — … $ …
…
…
… … … … … … … $ …
…
…
(a) EPS is calculated using the weighted average basic common shares outstanding
(b) Represents the earnings (loss) attributable to common shareholders
(c) Represents the mark‑to‑market impact of economic hedging activities which
are excluded to align with the recognition of the underlying hedged exposures
(d) Represents SWEPCo’s agreements with certain existing wholesale customers
under generation supply contracts, which resulted in credits to these wholesale
customers that were paid in 2026
(e) Tax effect is calculated using the statutory tax rate unless otherwise noted
…
…
…
…
…
…
…
… 2…
… V…
… I…
… U…
… ($ T…
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… u… U… H… M… O… T… (…
──────────────────────────────────────────────────────────────────────────────
…
… -b … … … … … … $ …
…
…
… -c
…
…
M…
I…
of -d … — — 4 — … —
C…
H…
A…
I…
of -e — … — — — … …
O…
L…
… … … — 4 — … $ …
…
…
… … … … … … … $ …
…
…
(a) EPS is calculated using the weighted average basic common shares outstanding
(b) Represents the earnings (loss) attributable to common shareholders
(c) Excluding tax related adjustments, all items presented in the table are tax
adjusted at the statutory rate unless otherwise noted
(d) Represents the mark‑to‑market impact of economic hedging activities which
are excluded to align with the recognition of the underlying hedged exposures
(e) Represents the reduction in regulatory assets for OVEC-related purchased
power costs as a result of approved legislation in Ohio
7
American
Electric
Power
Summary of
Selected
Sales Data
Regulated
Connected
Load
(Data based
on
preliminary,
unaudited
results)
Three Months
Ended
September 30,
ENERGY &
DELIVERY 2025 2026 Variance
SUMMARY
-in millions
of KWh
Vertically
Integrated
Utilities
Retail:
Residential 8,842 9,631 8.9 %
Commercial 7,355 8,475 15.2 %
Industrial 8,552 8,619 0.8 %
Miscellaneous 599 652 8.8 %
Total Retail 25,348 27,377 8.0 %
Wholesale (a) 4,217 5,088 20.7 %
Total KWhs 29,565 32,465 9.8 %
Transmission
&
Distribution
Utilities
Retail:
Residential 8,256 8,726 5.7 %
Commercial 12,610 14,885 18.0 %
Industrial 7,009 8,084 15.3 %
Miscellaneous 209 218 4.3 %
Total Retail 28,084 31,913 13.6 %
(b)
Wholesale (c) 552 2 -99.6 %
Total KWhs 28,636 31,915 11.5 %
(a) Includes off-system sales, municipalities and cooperatives, unit power and
other wholesale customers
(b) Represents energy delivered to distribution customers
(c) Primarily Ohio’s contractually obligated purchases of OVEC power sold to PJM
8
…
…
…
…
…
…
…
… 2…
… V…
… I…
… U…
… ($ T…
… in & A… G… C…
… m… D… T… & a… E…
… u… U… H… M… O… T… (…
──────────────────────────────────────────────────────────────────────────────
…
… -b … … … … … … $ …
…
…
…
…
…
M…
I…
of -c … — — … — … …
C…
H…
A…
I…
of -d … — — — — … …
W…
O…
P…
P… -e … — — — — … …
P…
D…
U…
T…
M… -f — … — — — … …
P…
D…
W…
C… -g … — — — — … …
C…
A…
I…
T…
E… -h … … — … — … …
of
A…
… … … — … — … $ …
…
…
… … … … … … … $ …
…
…
(a) EPS is calculated using the weighted average basic common shares outstanding
(b) Represents the earnings (loss) attributable to common shareholders
(c) Represents the mark‑to‑market impact of economic hedging activities which
are excluded to align with the recognition of the underlying hedged exposures
(d) Represents the impact of the WVPSC order related to the 2024 Modified Rate
Base Cost surcharge update filing
(e) Represents the estimated impact of the probable, partial disallowance of the
Pirkey Plant net book value in the 2025 Texas Base Rate Case
(f) Represents the estimated impact of the probable, partial disallowance of
costs included in AEP Texas’ Unified Tracker Mechanism filing
(g) Represents SWEPCo’s agreements with certain existing wholesale customers
under generation supply contracts, which resulted in credits to these wholesale
customers that were paid in 2026
(h) Tax effect is calculated using the statutory tax rate unless otherwise noted
…
…
…
…
… 2…
… V…
… I…
… U…
… ($ T…
… in & A… G… C…
… m… D… T… & a… E…
… u… U… H… M… O… T… (…
──────────────────────────────────────────────────────────────────────────────
…
… -b … … … … … … $ …
…
…
… -c
…
…
M…
I…
of -d … — — … — 5 …
C…
H…
A…
S…
of
A… -e — — — … … … …
O…
P…
I…
of -f — … — — — … …
O…
L…
F…
N… -g … — … — — … …
O…
… … … … 8 … … $ …
…
…
… … … … … … … $ …
…
…
(a) EPS is calculated using the weighted average basic common shares outstanding
(b) Represents the earnings (loss) attributed to common shareholders
(c) Excluding tax related adjustments, all items presented in the table are tax
adjusted at the statutory rate unless otherwise noted
(d) Represents the mark‑to‑market impact of economic hedging activities which
are excluded to align with the recognition of the underlying hedged exposures
(e) Represents an adjustment to the estimated loss on the sale of AEP OnSite
Partners as a result of the contractual working capital true-up
(f) Represents the reduction in regulatory assets for OVEC-related purchased
power costs as a result of approved legislation in Ohio
(g) Represents the impact of the FERC NOLC Order for years 2021-2024
9
American
Electric
Power
Summary of
Selected
Sales Data
Regulated
Connected
Load
(Data based
on
preliminary,
unaudited
results)
Nine Months
Ended
September 30,
ENERGY &
DELIVERY 2025 2026 Variance
SUMMARY
-in millions
of KWh
Vertically
Integrated
Utilities
Retail:
Residential 24,618 24,947 1.3 %
Commercial 19,548 22,540 15.3 %
Industrial 25,248 25,201 -0.2 %
Miscellaneo… 1,701 1,753 3.1 %
Total Retail 71,115 74,441 4.7 %
Wholesale 12,451 12,183 -2.2 %
(a)
Total KWhs 83,566 86,624 3.7 %
Transmission
&
Distribution
Utilities
Retail:
Residential 21,566 21,377 -0.9 %
Commercial 33,240 40,623 22.2 %
Industrial 20,813 23,060 10.8 %
Miscellaneo… 553 555 0.4 %
Total Retail 76,172 85,615 12.4 %
(b)
Wholesale 1,683 901 -46.5 %
(c)
Total KWhs 77,855 86,516 11.1 %
(a) Includes off-system sales, municipalities and cooperatives, unit power and
other wholesale customers
(b) Represents energy delivered to distribution customers
(c) Primarily Ohio's contractually obligated purchase of OVEC power sold to PJM
10