American Electric Power

American Electric Power (AEP) is one of the largest regulated electric utilities in the United States. Its companies, such as AEP Ohio, AEP Texas and Appalachian Power, deliver power to 5.6 million customers in 11 states. AEP operates the largest electric transmission system in the country, with 40,000 line miles, and more than 252,000 miles of distribution lines. It owns or contracts about 33,000 megawatts of generating capacity.

State and federal regulators set its rates, so earnings grow mostly with the investment on which its utilities may earn a return. AEP plans to invest $78 billion from 2026 through 2030. Data centers, hyperscalers and industrial customers signed agreements for 69 gigawatts of new load through 2030.

The market prices AEP for the cost and risk of a very large building plan. AEP plans to invest $78 billion from 2026 through 2030 and sees more than $10 billion of further projects. To pay for this, it issues new debt and new shares: in May 2026, it agreed to sell about 23.5 million new shares through forward sale agreements at an initial price of $124.968 per share. Total debt rose to $52.8 billion at June 30, 2026, from $48.8 billion at December 31, 2025.

Regulators and customers also watch power bills closely, and growth depends on data center customers that must take the power as planned. Q2 2026 operating EPS fell to $1.36 from $1.43, partly because of the 2025 sale of a minority interest in transmission. For the gap to close, three things must be true. AEP must earn 2026 operating EPS within its raised guidance of $6.25 to $6.55.

The new large load customers must come online under their take-or-pay agreements, so that operating EPS grows 7% to 9% a year through 2030. State regulators must keep approving large load tariffs and new generation. The Q3 2026 report, estimated for about October 30, 2026, is the next test. The 2027 guidance in early 2027 is the main test.

If these checks pass, the gap can close over the next two to four quarters. The main reason it may not close is a delay in data center demand, which would leave AEP with costly new plants and lines.

1. Oct 30, 2026 · est.Pending

   Q3 2026 earnings: guidance and new loadYear-to-date operating EPS on track for the $6.25 to $6.55 guidance and signed new load at 69 gigawatts or more pass; a cut to the guidance or lost load agreements fail.
2. Feb 2027 · est.Pending

   Full-year 2026 results and 2027 guidance2027 operating EPS guidance about 7% to 9% above the 2026 result, with the capital plan funded as planned, passes; guidance below 7% growth or a large new share sale fails.

Every passed and failed checkpoint across all picks

AEP funds its utilities with long-term bonds, securitization bonds, commercial paper and new shares. At June 30, 2026, total debt was $52.84 billion: long-term debt of $50.81 billion, including $2.82 billion due within one year, and short-term debt of $2.03 billion. Read more

• Growth depends on large new customers, mostly data centers and hyperscalers, with 69 gigawatts of signed load through 2030. If these customers delay or cancel projects, AEP may build plants and lines that it does not need, although take-or-pay agreements give some protection.
• The $78 billion investment plan needs large amounts of new debt and new shares. Total debt rose to $52.8 billion at June 30, 2026, and AEP agreed to sell about 23.5 million new shares in May 2026. Higher interest rates or a lower share price make this funding more costly.
• Regulators in 11 states set AEP's rates. Higher power bills can cause regulators to approve lower returns or smaller rate increases. In Q2 2026, Ohio approved a distribution base rate decrease for customers.
• AEP plans new gas, fuel cell and possibly nuclear generation. Large projects can cost more or take longer than planned, and AEP's head of nuclear development left the company in September 2026.

• September 29, 2026Alicia Knapp, President Nuclear Development of AEP, left the company in an involuntary separation.
• July 30, 2026AEP reported Q2 2026 results. GAAP EPS was $1.31 and operating EPS was $1.36, down from $1.43, because of the 2025 transmission minority interest sale and the timing of tax items. AEP raised its 2026 operating EPS guidance to $6.25 to $6.55. Signed new load grew by 6 gigawatts to 69 gigawatts through 2030, and AEP secured about 13 gigawatts of gas turbine capacity. AEP Texas secured a DOE loan of up to $3.3 billion for transmission projects.
• July 20, 2026The board elected David S. Marriott, Chairman of Marriott International, and Charles J. Meyers, Executive Chairman of Equinix, as directors.