- Year-end 2023 GAAP earnings of $4.26 per share; operating earnings of
$5.25 per share
- 2024 operating earnings (non-GAAP) guidance range reaffirmed at
$5.53 to $5.73 per share with long-term growth rate of 6%
to 7% and FFO/Debt target of 14% to 15%
- Company advances strategic initiatives including de-risking the
business, controlling costs and investing in a modern and reliable
grid to benefit customers
COLUMBUS, Ohio, Feb. 26,
2024 /PRNewswire/ --
|
AMERICAN ELECTRIC
POWER
Preliminary,
unaudited results
|
|
|
|
|
Fourth Quarter ended
December 31
|
|
Year-to-date ended
December 31
|
|
|
2023
|
2022
|
Variance
|
|
2023
|
2022
|
Variance
|
Revenue ($ in
billions):
|
4.6
|
4.9
|
(0.3)
|
|
19.0
|
19.6
|
(0.6)
|
Earnings ($ in
millions):
|
|
|
|
|
|
|
|
|
GAAP
|
336.2
|
384.3
|
(48.1)
|
|
2,208.1
|
2,307.2
|
(99.1)
|
|
Operating
(non-GAAP)
|
646.9
|
540.1
|
106.8
|
|
2,724.5
|
2,605.2
|
119.3
|
|
|
|
|
|
|
|
|
|
EPS
($):
|
|
|
|
|
|
|
|
|
|
GAAP
|
0.64
|
0.75
|
(0.11)
|
|
4.26
|
4.51
|
(0.25)
|
|
Operating
(non-GAAP)
|
1.23
|
1.05
|
0.18
|
|
5.25
|
5.09
|
0.16
|
|
EPS based on 526
million shares 4Q 2023, 514 million shares 4Q 2022, 519 million
shares YTD 2023 and 512 million shares YTD 2022.
|
American Electric Power (Nasdaq: AEP) today reported
fourth-quarter 2023 earnings, prepared in accordance with Generally
Accepted Accounting Principles (GAAP), of $336 million or $0.64 per share, compared with GAAP earnings of
$384 million or $0.75 per share in fourth-quarter 2022. Operating
earnings for fourth-quarter 2023 were $647
million or $1.23 per share,
compared with operating earnings of $540
million or $1.05 per share in
fourth-quarter 2022. Operating earnings is a non-GAAP measure
representing GAAP earnings excluding special items.
Year-end 2023 GAAP earnings were $2.2
billion or $4.26 per share,
compared with GAAP earnings of $2.3
billion or $4.51 per share for
year-end 2022. Year-end 2023 operating earnings were $2.7 billion or $5.25 per share, compared with operating earnings
of $2.6 billion or $5.09 per share for year-end 2022.
The difference between GAAP and operating earnings for the
fourth quarter and year-end 2023 was largely due to the
disallowance of recovery of certain deferred fuel costs in
West Virginia, the probable
disallowance of certain capitalized costs associated with the Turk
Plant, and the mark-to-market impact of economic hedging
activities. A full reconciliation of GAAP earnings to operating
earnings for the quarter and year-to-date is included in the tables
at the end of this news release.
In a separate release today, AEP announced that Benjamin G.S. Fowke III, a member of the
company's Board of Directors and the former chairman and CEO of
Xcel Energy, Inc., has been appointed interim chief executive
officer and president.
"Our team delivered 2023 operating earnings results within our
narrowed guidance range as we navigated a dynamic environment of
higher interest rates and one of the mildest years for weather in
our service territory in the last three decades," Fowke said.
"We are advancing our strategic priorities through investments
in the energy system to benefit customers while managing the
portfolio, driving efficiencies and lowering O&M costs. We also
continue our disciplined approach to economic development that
resulted in a 7.8% increase in commercial load and a 1.6% increase
in industrial load in 2023, bringing jobs and economic growth to
our communities. This remains a key area of focus as we see
continued growth opportunities and strong interest from customers
in the commercial sector.
"We remain focused on executing our 5-year, $43 billion capital plan with $27.3 billion allocated to transmission and
distribution investments to ensure reliable, affordable power and
enhance service for our customers. As part of that plan, we're also
transforming our generation fleet through the addition of diverse
regulated resources to support the growing energy needs of our
customers. We've received approval to add more fuel-free renewable
resources to serve customers in seven states, representing
$6.6 billion of our planned
$9.4 billion regulated renewables
capital plan," Fowke said.
"We continue to make progress on our strategy to de-risk the
business. We are working through the final phases of the sales
process for the AEP Energy retail and AEP OnSite Partners
distributed resources businesses and expect that process to
conclude by the end of the second quarter. We also expect to
complete the sale of our 50% share in the New Mexico Renewable
Development to Exus for $115 million
by the end of February.
"Following a strategic review, we will retain the Transource
business and build on our successful track record of pursuing
FERC-regulated competitive transmission opportunities as part of
our transmission growth strategy. We also have decided to retain
our share of the Pioneer and Prairie Wind transmission joint
ventures," Fowke said.
SUMMARY OF RESULTS
BY SEGMENT
$ in
millions
|
|
GAAP
Earnings
|
4Q 23
|
4Q 22
|
Variance
|
YTD
23
|
YTD
22
|
Variance
|
Vertically Integrated
Utilities (a)
|
38.8
|
215.7
|
(176.9)
|
1,090.4
|
1,292.0
|
(201.6)
|
Transmission &
Distribution Utilities (b)
|
190.3
|
112.6
|
77.7
|
698.7
|
595.7
|
103.0
|
AEP Transmission
Holdco (c)
|
122.1
|
188.1
|
(66.0)
|
702.9
|
673.5
|
29.4
|
Generation &
Marketing (d)
|
33.0
|
(0.7)
|
33.7
|
(26.3)
|
283.6
|
(309.9)
|
All Other
|
(48.0)
|
(131.4)
|
83.4
|
(257.6)
|
(537.6)
|
280.0
|
Total GAAP Earnings
(Loss)
|
336.2
|
384.3
|
(48.1)
|
2,208.1
|
2,307.2
|
(99.1)
|
|
|
|
|
|
|
|
Operating Earnings
(non-GAAP)
|
4Q 23
|
4Q 22
|
Variance
|
YTD
23
|
YTD
22
|
Variance
|
Vertically Integrated
Utilities (a)
|
237.8
|
208.7
|
29.1
|
1,283.4
|
1,307.9
|
(24.5)
|
Transmission &
Distribution Utilities (b)
|
188.6
|
112.6
|
76.0
|
676.8
|
595.7
|
81.1
|
AEP Transmission
Holdco (c)
|
159.3
|
188.1
|
(28.8)
|
740.2
|
673.5
|
66.7
|
Generation &
Marketing (d)
|
103.5
|
81.1
|
22.4
|
307.6
|
256.7
|
50.9
|
All Other
|
(42.3)
|
(50.4)
|
8.1
|
(283.5)
|
(228.6)
|
(54.9)
|
Total Operating
Earnings (non-GAAP)
|
646.9
|
540.1
|
106.8
|
2,724.5
|
2,605.2
|
119.3
|
|
|
A full reconciliation
of GAAP earnings with 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 Co. of Oklahoma, Southwestern
Electric Power and Wheeling Power
|
b.
|
Includes Ohio Power and
AEP Texas
|
c.
|
Includes wholly-owned
transmission-only subsidiaries and transmission-only joint
ventures
|
d.
|
Includes AEP OnSite
Partners, AEP Renewables, competitive generation in ERCOT and PJM
as well as marketing, risk management and retail activities in
ERCOT, PJM and MISO
|
EARNINGS GUIDANCE
AEP management reaffirms its 2024 operating earnings guidance
range of $5.53 to $5.73 per share. Operating earnings could differ
from GAAP earnings for matters such as divestitures, impairments or
changes in accounting principles. 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.
WEBCAST
AEP's quarterly discussion with financial analysts and investors
will be broadcast live over the internet at 9 a.m. Eastern tomorrow, Feb. 27 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's earnings are prepared in accordance with accounting
principles generally accepted in the
United States and represent the company's earnings as
reported to the Securities and Exchange Commission. The company's
operating earnings, a non-GAAP measure representing GAAP earnings
excluding special items as described in the news release and
charts, provide another representation for investors to evaluate
the performance of the company's ongoing business activities. AEP
uses operating earnings as the primary performance measurement when
communicating with analysts and investors regarding its earnings
outlook and results. The company uses operating earnings data
internally to measure performance against budget, to report to
AEP's Board of Directors and also as an input in determining
performance-based compensation under the company's employee
incentive compensation plans.
At American Electric Power, based in Columbus, Ohio, we understand that our
customers and communities depend on safe, reliable and affordable
power. Our nearly 17,000 employees operate and maintain more than
40,000 miles of transmission lines, the nation's largest electric
transmission system, and more than 225,000 miles of distribution
lines to deliver power to 5.6 million customers in 11 states. AEP
also is one of the nation's largest electricity producers with
nearly 29,000 megawatts of diverse generating capacity, including
approximately 6,100 megawatts of renewable energy. AEP is investing
$43 billion over the next five years
to make the electric grid cleaner and more reliable. We are on
track to reach an 80% reduction in carbon dioxide emissions from
2005 levels by 2030 and have a goal to achieve net zero by 2045.
AEP is recognized consistently for its focus on sustainability,
community engagement and inclusion. AEP's family of companies
includes utilities AEP Ohio, AEP Texas, Appalachian Power (in
Virginia and West Virginia), AEP Appalachian Power (in
Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. 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/.
This report made by American Electric Power and its Registrant
Subsidiaries 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 trade tensions including the conflicts
in Ukraine and the Middle East, and the adoption or expansion of
economic sanctions or trade restrictions; inflationary or
deflationary interest rate trends; volatility and disruptions in
the financial markets precipitated by any cause, including failure
to make progress on federal budget or debt ceiling matters,
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 if expected sources of capital such
as proceeds from the sale of assets, subsidiaries and tax credits,
and anticipated securitizations, do not materialize or do not
materialize at the level anticipated, and during periods when the
time lag between incurring costs and recovery is long and the costs
are material; decreased demand for electricity; weather conditions,
including storms and drought conditions, and AEP's ability to
recover significant storm restoration costs; 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 fuel suppliers and transporters
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 the performance of generation plants; AEP's
ability to recover fuel and other energy costs through regulated or
competitive electric rates; the ability to transition from fossil
generation and the ability to build or acquire renewable
generation, transmission lines and facilities (including the
ability to obtain any necessary regulatory approvals and permits)
when needed at acceptable prices and terms, including favorable tax
treatment, and to recover those costs; the impact of pandemics and
any associated 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; new
legislation, litigation and government regulation, including
changes to tax laws and regulations, oversight of nuclear
generation, energy commodity trading and new or heightened
requirements for reduced 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 on results of operations, financial condition, cash
flows or credit ratings; the risks associated with fuels used
before, during and after the generation of electricity and 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 litigation or regulatory proceedings or investigations; AEP's
ability to efficiently manage operation and maintenance 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; AEP's 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 focus on
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 AEP's 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,
wildfires, cyber security threats and other catastrophic events;
and the ability to attract and retain the requisite work force and
key personnel.
American Electric
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for the Fourth Quarter of 2023
|
Reconciliation of
GAAP to Operating Earnings (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
Vertically
Integrated
Utilities
|
|
Transmission
& Distribution
Utilities
|
|
AEP
Transmission
Holdco
|
|
Generation
&
Marketing
|
|
Corporate
and Other
|
|
Total
|
|
EPS (a)
|
|
|
|
($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
38.8
|
|
190.3
|
|
122.1
|
|
33.0
|
|
(48.0)
|
|
336.2
|
|
$
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
(17.6)
|
|
—
|
|
—
|
|
72.7
|
|
—
|
|
55.1
|
|
0.10
|
|
Sale of Unregulated
Renewables
|
(d)
|
—
|
|
—
|
|
—
|
|
(17.5)
|
|
0.3
|
|
(17.2)
|
|
(0.03)
|
|
Impairment of
Investment in New Mexico Renewable Development
|
(e)
|
—
|
|
—
|
|
—
|
|
15.0
|
|
—
|
|
15.0
|
|
0.03
|
|
Remeasurement of Excess
ADIT Regulatory Liability
|
(f)
|
(46.0)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(46.0)
|
|
(0.09)
|
|
FERC NOLC
Disallowance
|
(g)
|
(3.0)
|
|
(9.0)
|
|
36.1
|
|
—
|
|
(0.4)
|
|
23.7
|
|
0.04
|
|
ENEC Fuel
Disallowance
|
(h)
|
175.2
|
|
—
|
|
—
|
|
—
|
|
5.8
|
|
181.0
|
|
0.35
|
|
Turk
Impairment
|
(i)
|
79.7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
79.7
|
|
0.15
|
|
Severance
Charges
|
(j)
|
10.7
|
|
7.3
|
|
1.1
|
|
0.3
|
|
—
|
|
19.4
|
|
0.04
|
|
Total Special
Items
|
|
199.0
|
|
(1.7)
|
|
37.2
|
|
70.5
|
|
5.7
|
|
310.7
|
|
$
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
237.8
|
|
188.6
|
|
159.3
|
|
103.5
|
|
(42.3)
|
|
646.9
|
|
$
1.23
|
|
|
(a)
|
Per share amounts are
divided by Weighted Average Common Shares Outstanding –
Basic
|
(b)
|
Excluding tax related
adjustments, all items presented in the table are tax adjusted at
the statutory rate unless otherwise noted
|
(c)
|
Represents the impact
of mark-to-market economic hedging activities
|
(d)
|
Represents the loss on
the sale of the Competitive Contracted Renewable Portfolio and
other related third-party transaction costs
|
(e)
|
Represents the
impairment of AEP's investment in the New Mexico Renewable
Development joint venture
|
(f)
|
Represents the impact
of the remeasurement of accumulated deferred income taxes - net
operating loss carryforward in Virginia and West
Virginia
|
(g)
|
Represents the impact
of the FERC decision denying stand-alone treatment of NOLCs for
transmission formula rates
|
(h)
|
Represents the impact
of the disallowance of the recovery certain deferred fuel costs in
West Virginia
|
(i)
|
Represents the impact
of the probable disallowance of certain capitalized costs
associated with the Turk Plant
|
(j)
|
Represents the impact
of AEP's recently announced workforce reduction
|
Financial Results
for the Fourth Quarter of 2022
|
Reconciliation of
GAAP to Operating Earnings (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
Vertically
Integrated
Utilities
|
|
Transmission
& Distribution
Utilities
|
|
AEP
Transmission
Holdco
|
|
Generation
&
Marketing
|
|
Corporate
and Other
|
|
Total
|
|
EPS (a)
|
|
|
|
($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
215.7
|
|
112.6
|
|
188.1
|
|
(0.7)
|
|
(131.4)
|
|
384.3
|
|
$
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
Items (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
(7.0)
|
|
—
|
|
—
|
|
96.8
|
|
—
|
|
89.8
|
|
0.18
|
|
Pending Sale of
Kentucky Operations
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
80.4
|
|
80.4
|
|
0.15
|
|
Mark-to-Market Impact
of Certain Investments
|
(e)
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.2)
|
|
(3.2)
|
|
(0.01)
|
|
Pending Sale of
Unregulated Renewables
|
(f)
|
—
|
|
—
|
|
—
|
|
—
|
|
0.9
|
|
0.9
|
|
—
|
|
Impairment and
Disposition of Investment in Flat Ridge 2
|
(g)
|
—
|
|
—
|
|
—
|
|
(15.0)
|
|
2.9
|
|
(12.1)
|
|
(0.02)
|
|
Total Special
Items
|
|
(7.0)
|
|
—
|
|
—
|
|
81.8
|
|
81.0
|
|
155.8
|
|
$
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss) (non-GAAP)
|
|
208.7
|
|
112.6
|
|
188.1
|
|
81.1
|
|
(50.4)
|
|
540.1
|
|
$
1.05
|
|
|
(a)
|
Per share amounts are
divided by Weighted Average Common Shares Outstanding –
Basic
|
(b)
|
Excluding tax related
adjustments, all items presented in the table are tax adjusted at
the statutory rate unless otherwise noted
|
(c)
|
Represents the impact
of mark-to-market economic hedging activities
|
(d)
|
Represents an
adjustment to the loss on the expected sale of the Kentucky
Operations which was terminated in April 2023 and other related
third-party transaction costs
|
(e)
|
Represents the impact
of mark-to-market on certain investments
|
(f)
|
Represents third-party
transaction costs due to the unregulated renewable sales
process
|
(g)
|
Represents the impact
of the impairment and disposition of AEP's investment in the Flat
Ridge 2 wind farm joint venture
|
American Electric
Power
|
Summary of Selected
Sales Data
|
Regulated Connected
Load
|
|
|
|
Three Months Ended
December 31
|
ENERGY &
DELIVERY SUMMARY
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
6,884
|
|
7,024
|
|
(2.0) %
|
Commercial
|
|
5,700
|
|
5,437
|
|
4.8 %
|
Industrial
|
|
8,462
|
|
8,383
|
|
0.9 %
|
Miscellaneous
|
|
545
|
|
542
|
|
0.6 %
|
Total
Retail
|
|
21,591
|
|
21,386
|
|
1.0 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of KWh): (a)
|
|
2,781
|
|
4,183
|
|
(33.5) %
|
|
|
|
|
|
|
|
Total
KWhs
|
|
24,372
|
|
25,569
|
|
(4.7) %
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
5,481
|
|
5,748
|
|
(4.6) %
|
Commercial
|
|
7,708
|
|
6,325
|
|
21.9 %
|
Industrial
|
|
6,771
|
|
6,252
|
|
8.3 %
|
Miscellaneous
|
|
180
|
|
179
|
|
0.6 %
|
Total
Retail (b)
|
|
20,140
|
|
18,504
|
|
8.8 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of KWh): (a)
|
|
556
|
|
326
|
|
70.6 %
|
|
|
|
|
|
|
|
Total
KWhs
|
|
20,696
|
|
18,830
|
|
9.9 %
|
|
|
(a)
|
Includes off-system
sales, municipalities and cooperatives, unit power and other
wholesale customers
|
(b)
|
Represents energy
delivered to distribution customers
|
American Electric
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for Year-to-Date 2023
|
Reconciliation of
GAAP to Operating Earnings (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
Vertically
Integrated
Utilities
|
|
Transmission
& Distribution
Utilities
|
|
AEP
Transmission
Holdco
|
|
Generation
&
Marketing
|
|
Corporate
and Other
|
|
Total
|
|
EPS (a)
|
|
|
|
($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
1,090.4
|
|
698.7
|
|
702.9
|
|
(26.3)
|
|
(257.6)
|
|
2,208.1
|
|
$
4.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of Commodity Hedging Activities
|
(c)
|
(19.3)
|
|
—
|
|
—
|
|
247.6
|
|
—
|
|
228.3
|
|
0.44
|
|
Termination of the Sale
of Kentucky Operations
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
(33.7)
|
|
(33.7)
|
|
(0.06)
|
|
Sale of Unregulated
Renewables
|
(e)
|
—
|
|
—
|
|
—
|
|
71.0
|
|
2.4
|
|
73.4
|
|
0.14
|
|
Change in Texas
Legislation
|
(f)
|
(4.3)
|
|
(20.2)
|
|
0.1
|
|
—
|
|
—
|
|
(24.4)
|
|
(0.05)
|
|
Impairment of
Investment in New Mexico Renewable Development
|
(g)
|
—
|
|
—
|
|
—
|
|
15.0
|
|
—
|
|
15.0
|
|
0.03
|
|
Remeasurement of Excess
ADIT Regulatory Liability
|
(h)
|
(46.0)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(46.0)
|
|
(0.09)
|
|
FERC NOLC
Disallowance
|
(i)
|
(3.0)
|
|
(9.0)
|
|
36.1
|
|
—
|
|
(0.4)
|
|
23.7
|
|
0.04
|
|
ENEC Fuel
Disallowance
|
(j)
|
175.2
|
|
—
|
|
—
|
|
—
|
|
5.8
|
|
181.0
|
|
0.35
|
|
Turk
Impairment
|
(k)
|
79.7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
79.7
|
|
0.15
|
|
Severance
Charges
|
(l)
|
10.7
|
|
7.3
|
|
1.1
|
|
0.3
|
|
—
|
|
19.4
|
|
0.04
|
|
Total Special
Items
|
|
193.0
|
|
(21.9)
|
|
37.3
|
|
333.9
|
|
(25.9)
|
|
516.4
|
|
$
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
1,283.4
|
|
676.8
|
|
740.2
|
|
307.6
|
|
(283.5)
|
|
2,724.5
|
|
$
5.25
|
|
|
(a)
|
Per share amounts are
divided by Weighted Average Common Shares Outstanding –
Basic
|
(b)
|
Excluding tax related
adjustments, all items presented in the table are tax adjusted at
the statutory rate unless otherwise noted
|
(c)
|
Represents the impact
of mark-to-market economic hedging activities
|
(d)
|
Represents an
adjustment to the loss on the expected sale of the Kentucky
Operations which was terminated in April 2023 and other related
third-party transaction costs
|
(e)
|
Represents the loss on
the sale of the Competitive Contracted Renewable Portfolio and
other related third-party transaction costs
|
(f)
|
Represents the impact
of recent legislation in Texas regarding recovery of certain
employee incentives
|
(g)
|
Represents the
impairment of AEP's investment in the New Mexico Renewable
Development joint venture
|
(h)
|
Represents the impact
of the remeasurement of accumulated deferred income taxes - net
operating loss carryforward in Virginia and West
Virginia
|
(i)
|
Represents the impact
of the FERC decision denying stand-alone treatment of NOLCs for
transmission formula rates
|
(j)
|
Represents the impact
of the disallowance of the recovery certain deferred fuel costs in
West Virginia
|
(k)
|
Represents the impact
of the probable disallowance of certain capitalized costs
associated with the Turk Plant
|
(l)
|
Represents the impact
of AEP's recently announced workforce reduction
|
Financial Results
for Year-to-Date 2022
|
Reconciliation of
GAAP to Operating Earnings (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
Vertically
Integrated
Utilities
|
|
Transmission
& Distribution
Utilities
|
|
AEP
Transmission
Holdco
|
|
Generation
&
Marketing
|
|
Corporate
and Other
|
|
Total
|
|
EPS (a)
|
|
|
|
($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
1,292.0
|
|
595.7
|
|
673.5
|
|
283.6
|
|
(537.6)
|
|
2,307.2
|
|
$
4.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market
Impact of Commodity Hedging Activities
|
(c)
|
(8.5)
|
|
—
|
|
—
|
|
(68.5)
|
|
—
|
|
(77.0)
|
|
(0.15)
|
|
Accumulated
Deferred Income Tax Adjustments
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.0)
|
|
(2.0)
|
|
—
|
|
Pending Sale of
Kentucky Operations
|
(e)
|
—
|
|
—
|
|
—
|
|
—
|
|
306.8
|
|
306.8
|
|
0.59
|
|
Gain on Sale of
Mineral Rights
|
(f)
|
—
|
|
—
|
|
—
|
|
(91.9)
|
|
—
|
|
(91.9)
|
|
(0.18)
|
|
Mark-to-Market
Impact of Certain Investments
|
(g)
|
—
|
|
—
|
|
—
|
|
—
|
|
(3.2)
|
|
(3.2)
|
|
(0.01)
|
|
Pending Sale of
Unregulated Renewables
|
(h)
|
—
|
|
—
|
|
—
|
|
—
|
|
4.5
|
|
4.5
|
|
0.01
|
|
Impairment and
Disposition of Investment in Flat Ridge 2
|
(i)
|
—
|
|
—
|
|
—
|
|
133.5
|
|
2.9
|
|
136.4
|
|
0.27
|
|
Virginia
Triennial Review
|
(j)
|
24.4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24.4
|
|
0.05
|
Total Special
Items
|
|
15.9
|
|
—
|
|
—
|
|
(26.9)
|
|
309.0
|
|
298.0
|
|
$
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
1,307.9
|
|
595.7
|
|
673.5
|
|
256.7
|
|
(228.6)
|
|
2,605.2
|
|
$
5.09
|
|
|
(a)
|
Per share amounts are
divided by Weighted Average Common Shares Outstanding –
Basic
|
(b)
|
Excluding tax related
adjustments, all items presented in the table are tax adjusted at
the statutory rate unless otherwise noted
|
(c)
|
Represents the impact
of mark-to-market economic hedging activities
|
(d)
|
Represents the impact
of out-of-period adjustments related to accumulated deferred income
taxes
|
(e)
|
Includes a $363.3
million loss on the expected sale of the Kentucky operations and
other related third-party transaction costs
|
(f)
|
Represents the gain on
the sale of certain mineral rights
|
(g)
|
Represents the impact
of mark-to-market on certain investments
|
(h)
|
Represents third-party
transaction costs due to the unregulated renewable sales
process
|
(i)
|
Represents the impact
of the impairment and disposition of AEP's investment in the Flat
Ridge 2 wind farm joint venture
|
(j)
|
Represents the impact
of the Virginia Supreme Court opinion on AEP's appeal of
Appalachian Power's 2017-2019 Triennial Review
|
American Electric
Power
|
Summary of Selected
Sales Data
|
Regulated Connected
Load
|
|
|
|
Twelve Months Ended
December 31
|
ENERGY &
DELIVERY SUMMARY
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
30,290
|
|
32,835
|
|
(7.8) %
|
Commercial
|
|
23,481
|
|
23,770
|
|
(1.2) %
|
Industrial
|
|
34,148
|
|
34,532
|
|
(1.1) %
|
Miscellaneous
|
|
2,229
|
|
2,316
|
|
(3.8) %
|
Total
Retail
|
|
90,148
|
|
93,453
|
|
(3.5) %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of KWh): (a)
|
|
13,401
|
|
16,099
|
|
(16.8) %
|
|
|
|
|
|
|
|
Total
KWhs
|
|
103,549
|
|
109,552
|
|
(5.5) %
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of KWh):
|
|
|
|
|
|
|
Residential
|
|
26,099
|
|
27,479
|
|
(5.0) %
|
Commercial
|
|
30,419
|
|
27,448
|
|
10.8 %
|
Industrial
|
|
26,571
|
|
25,435
|
|
4.5 %
|
Miscellaneous
|
|
745
|
|
753
|
|
(1.1) %
|
Total
Retail (b)
|
|
83,834
|
|
81,115
|
|
3.4 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of KWh): (a)
|
|
1,922
|
|
2,198
|
|
(12.6) %
|
|
|
|
|
|
|
|
Total
KWhs
|
|
85,756
|
|
83,313
|
|
2.9 %
|
|
|
(a)
|
Includes off-system
sales, municipalities and cooperatives, unit power and other
wholesale customers
|
(b)
|
Represents energy
delivered to distribution customers
|
View original content to download
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SOURCE American Electric Power