- Second-quarter 2023 GAAP earnings of $1.01 per share; operating earnings of
$1.13 per share
- 2023 operating earnings (non-GAAP) guidance range reaffirmed at
$5.19 to $5.39 per share with long-term growth rate of 6%
to 7% and FFO/Debt target of 14% to 15%
- Sale process announced for two non-core transmission joint
ventures; unregulated renewables sale expected to close in
August; sale of retail and distributed resources businesses on
track
COLUMBUS, Ohio, July 27,
2023 /PRNewswire/ --
|
|
|
|
AMERICAN ELECTRIC
POWER
Preliminary,
unaudited results
|
|
|
|
Second Quarter
ended June 30
|
|
Year-to-date ended
June 30
|
|
|
2023
|
2022
|
Variance
|
|
2023
|
2022
|
Variance
|
Revenue ($ in
billions):
|
4.4
|
4.6
|
(0.2)
|
|
9.1
|
9.2
|
(0.1)
|
Earnings ($ in
millions):
|
|
|
|
|
|
|
|
|
GAAP
|
521.2
|
524.5
|
(3.3)
|
|
918.2
|
1,239.2
|
(321.0)
|
|
Operating
(non-GAAP)
|
582.2
|
617.7
|
(35.5)
|
|
1,153.8
|
1,234.1
|
(80.3)
|
|
|
|
|
|
|
|
|
|
EPS
($):
|
|
|
|
|
|
|
|
|
|
GAAP
|
1.01
|
1.02
|
(0.01)
|
|
1.78
|
2.43
|
(0.65)
|
|
Operating
(non-GAAP)
|
1.13
|
1.20
|
(0.07)
|
|
2.24
|
2.42
|
(0.18)
|
|
EPS based on 515
million shares 2Q 2023, 514 million shares 2Q 2022, 515 million
shares YTD 2023 and 510 million shares YTD 2022.
|
American Electric Power (Nasdaq: AEP) today reported
second-quarter 2023 earnings, prepared in accordance with Generally
Accepted Accounting Principles (GAAP), of $521 million or $1.01 per share, compared with GAAP earnings of
$525 million or $1.02 per share in second-quarter 2022. Operating
earnings for second-quarter 2023 were $582
million or $1.13 per share,
compared with operating earnings of $618
million or $1.20 per share in
second-quarter 2022.
Operating earnings is a non-GAAP measure representing GAAP
earnings excluding special items. The difference between 2023 GAAP
and operating earnings for the quarter was largely due to the
mark-to-market impact of economic hedging activities and recent
legislation in Texas regarding
recovery of certain employee incentives. 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.
"AEP is committed to creating value for all our stakeholders as
we invest $40 billion over the next
five years in our energy delivery system and new generation
resources. We made significant progress on our strategic objectives
in the second quarter, executing on our regulated renewables and
grid investment plans to benefit customers while working to keep
rates affordable and supporting economic growth in our
communities," said Julie Sloat, AEP
president and chief executive officer.
"This quarter's results reflect the timing of higher interest
and O&M expenses, as well as milder temperatures year over
year. Our projections for the second half of the year are bolstered
by our focus on cost discipline, efficiency and agility in
operations to ensure we meet our stakeholder commitments. We are
reaffirming our 2023 operating earnings guidance range of
$5.19 to $5.39 per share and our long-term growth rate of
6% to 7%.
"Residential and industrial load have slowed down as expected
due to the impacts of inflation and rising interest rates on our
customers. At the same time, we've had a significant increase in
commercial load, which has grown almost 8 percent year over year in
each of the last two quarters. This improvement is largely driven
by our ongoing focus on economic development to bring growth and
opportunity to our communities," Sloat said.
"We continue taking actions to de-risk and simplify our
business. We expect to close on the sale of our 1,365-megawatt
unregulated renewables portfolio to IRG Acquisition Holdings in
August 2023 and are on track with the
sales processes for the AEP Energy retail and AEP OnSite Partners
distributed resources businesses as well as our 50% share in the
New Mexico Renewable Development joint venture.
"We announced today that we'll be launching the sale of AEP's
interests in two non-core transmission joint ventures, Prairie Wind
and Pioneer. We plan to complete the previously announced strategic
review of our Transource Energy joint venture by the end of the
year. Our ongoing active management of the company strengthens our
ability to prioritize investments in our regulated businesses to
enhance service for customers while maintaining our commitment to
credit quality," Sloat said.
"In the second quarter, we received regulatory approval to add
nearly 2,000 megawatts of new wind and solar generation to help
meet the projected power needs of customers in Oklahoma, Arkansas and Louisiana. We now have approvals in place for
$5.2 billion of our five-year,
$8.6 billion regulated renewables
capital plan. We've filed for approval of $1.7 billion in additional renewable projects and
have active RFPs for resources in other jurisdictions. We also
continue to see positive earnings contributions from the
transmission investments we're making to improve reliability and
service for our customers," Sloat said.
SUMMARY OF RESULTS
BY SEGMENT
$ in
millions
|
|
|
|
|
|
|
|
GAAP
Earnings
|
2Q 23
|
2Q 22
|
Variance
|
YTD
23
|
YTD
22
|
Variance
|
Vertically Integrated
Utilities (a)
|
278.1
|
301.2
|
(23.1)
|
539.1
|
599.4
|
(60.3)
|
Transmission &
Distribution Utilities (b)
|
176.7
|
164.8
|
11.9
|
302.4
|
317.6
|
(15.2)
|
AEP Transmission
Holdco (c)
|
196.4
|
141.8
|
54.6
|
377.9
|
314.9
|
63.0
|
Generation &
Marketing (d)
|
(32.3)
|
72.6
|
(104.9)
|
(190.0)
|
186.8
|
(376.8)
|
All Other
|
(97.7)
|
(155.9)
|
58.2
|
(111.2)
|
(179.5)
|
68.3
|
Total GAAP Earnings
(Loss)
|
521.2
|
524.5
|
(3.3)
|
918.2
|
1,239.2
|
(321.0)
|
|
|
|
|
|
|
|
Operating Earnings
(non-GAAP)
|
2Q 23
|
2Q 22
|
Variance
|
YTD
23
|
YTD
22
|
Variance
|
Vertically Integrated
Utilities (a)
|
260.4
|
301.2
|
(40.8)
|
525.6
|
599.4
|
(73.8)
|
Transmission &
Distribution Utilities (b)
|
156.5
|
164.8
|
(8.3)
|
282.2
|
317.6
|
(35.4)
|
AEP Transmission
Holdco (c)
|
196.5
|
141.8
|
54.7
|
378.0
|
314.9
|
63.1
|
Generation &
Marketing (d)
|
66.1
|
90.9
|
(24.8)
|
111.3
|
105.6
|
5.7
|
All Other
|
(97.3)
|
(81.0)
|
(16.3)
|
(143.3)
|
(103.4)
|
(39.9)
|
Total Operating
Earnings (non-GAAP)
|
582.2
|
617.7
|
(35.5)
|
1,153.8
|
1,234.1
|
(80.3)
|
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 reaffirmed its 2023 operating earnings guidance
range of $5.19 to $5.39 per share. Operating earnings could differ
from GAAP earnings for matters such as impairments, divestitures 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.
Reflecting special items recorded through the second quarter,
the estimated earnings per share on a GAAP basis would be
$4.73 to $4.93 per share. See the table below for a full
reconciliation of 2023 earnings guidance.
2023 EPS
Guidance Reconciliation
|
|
|
|
|
Estimated EPS on a
GAAP basis
|
$4.73
|
to
|
$4.93
|
|
|
|
|
Mark-to-market impact
of commodity
hedging
activities
|
|
0.40
|
|
|
|
|
|
Termination of the
sale of Kentucky
operations
|
|
(0.06)
|
|
|
|
|
|
Pending sale of
unregulated renewables
|
|
0.17
|
|
|
|
|
|
Change in Texas
legislation
|
|
(0.05)
|
|
|
|
|
|
Operating EPS
Guidance
|
$5.19
|
to
|
$5.39
|
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'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.
American Electric Power, based in Columbus, Ohio, is powering a cleaner,
brighter energy future for its customers and communities. AEP's
approximately 17,000 employees operate and maintain the nation's
largest electricity transmission system and more than 225,000 miles
of distribution lines to safely deliver reliable and affordable
power to 5.6 million regulated customers in 11 states. AEP also is
one of the nation's largest electricity producers with
approximately 30,000 megawatts of diverse generating capacity,
including more than 7,000 megawatts of renewable energy. The
company's plans include growing its renewable generation portfolio
to approximately 50% of total capacity by 2032. AEP is on track to
reach an 80% reduction in carbon dioxide emissions from 2005 levels
by 2030 and has committed to achieving net zero by 2045. AEP is
recognized consistently for its focus on sustainability, community
engagement, and diversity, equity 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 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; the economic impact of increased global trade
tensions including the conflict between Russia and Ukraine, 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 or subsidiaries, do not
materialize, 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; 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 constrain 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 heightened emphasis 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,
naturally occurring and human-caused fires, 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 Second 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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
278.1
|
|
176.7
|
|
196.4
|
|
(32.3)
|
|
(97.7)
|
|
521.2
|
|
$
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of
Commodity Hedging Activities
|
(c)
|
(13.4)
|
|
—
|
|
—
|
|
98.4
|
|
—
|
|
85.0
|
|
0.17
|
|
|
Pending Sale of
Unregulated
|Renewables
|
(e)
|
—
|
|
—
|
|
—
|
|
—
|
|
0.4
|
|
0.4
|
|
—
|
|
|
Change in Texas
Legislation
|
(f)
|
(4.3)
|
|
(20.2)
|
|
0.1
|
|
—
|
|
—
|
|
(24.4)
|
|
(0.05)
|
|
Total Special
Items
|
|
(17.7)
|
|
(20.2)
|
|
0.1
|
|
98.4
|
|
0.4
|
|
61.0
|
|
$
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
260.4
|
|
156.5
|
|
196.5
|
|
66.1
|
|
(97.3)
|
|
582.2
|
|
$
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
for the Second 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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
301.2
|
|
164.8
|
|
141.8
|
|
72.6
|
|
(155.9)
|
|
524.5
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of
Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
(36.4)
|
|
—
|
|
(36.4)
|
|
(0.07)
|
|
|
Pending Sale of
Kentucky
Operations
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
73.2
|
|
73.2
|
|
0.14
|
|
|
Mark-to-Market Impact
of
Certain Investments
|
(g)
|
—
|
|
—
|
|
—
|
|
—
|
|
1.7
|
|
1.7
|
|
—
|
|
|
Gain on Sale of Mineral
Rights
|
(h)
|
—
|
|
—
|
|
—
|
|
(91.9)
|
|
—
|
|
(91.9)
|
|
(0.18)
|
|
|
Impairment of
Investment in Flat
Ridge 2
|
(i)
|
—
|
|
—
|
|
—
|
|
146.6
|
|
—
|
|
146.6
|
|
0.29
|
|
Total Special
Items
|
|
—
|
|
—
|
|
—
|
|
18.3
|
|
74.9
|
|
93.2
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
301.2
|
|
164.8
|
|
141.8
|
|
90.9
|
|
(81.0)
|
|
617.7
|
|
$
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 expected 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 impact
of mark-to-market on certain investments
|
(h)
|
Represents the gain on
the sale of certain mineral rights
|
(i)
|
Represents the impact
of the write-off of AEP's investment in the Flat Ridge 2 wind
farm joint venture
|
American Electric
Power
|
Summary of Selected
Sales Data
|
Regulated Connected
Load
|
(Data based on
preliminary, unaudited results)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
ENERGY &
DELIVERY SUMMARY
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
6,332
|
|
7,039
|
|
(10.0) %
|
Commercial
|
|
5,723
|
|
5,911
|
|
(3.2) %
|
Industrial
|
|
8,660
|
|
8,906
|
|
(2.8) %
|
Miscellaneous
|
|
545
|
|
578
|
|
(5.7) %
|
Total
Retail
|
|
21,260
|
|
22,434
|
|
(5.2) %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
3,484
|
|
3,660
|
|
(4.8) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
24,744
|
|
26,094
|
|
(5.2) %
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
5,910
|
|
6,589
|
|
(10.3) %
|
Commercial
|
|
7,393
|
|
6,941
|
|
6.5 %
|
Industrial
|
|
6,673
|
|
6,647
|
|
0.4 %
|
Miscellaneous
|
|
177
|
|
197
|
|
(10.2) %
|
Total Retail
(b)
|
|
20,153
|
|
20,374
|
|
(1.1) %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
428
|
|
565
|
|
(24.2) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
20,581
|
|
20,939
|
|
(1.7) %
|
(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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
539.1
|
|
302.4
|
|
377.9
|
|
(190.0)
|
|
(111.2)
|
|
918.2
|
|
$
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of
Commodity Hedging Activities
|
(c)
|
(9.2)
|
|
—
|
|
—
|
|
212.8
|
|
—
|
|
203.6
|
|
0.40
|
|
|
Termination of the Sale
of
|Kentucky Operations
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
(33.7)
|
|
(33.7)
|
|
(0.06)
|
|
|
Pending Sale of
Unregulated
Renewables
|
(e)
|
—
|
|
—
|
|
—
|
|
88.5
|
|
1.6
|
|
90.1
|
|
0.17
|
|
|
Change in Texas
Legislation
|
(f)
|
(4.3)
|
|
(20.2)
|
|
0.1
|
|
—
|
|
—
|
|
(24.4)
|
|
(0.05)
|
|
Total Special
Items
|
|
(13.5)
|
|
(20.2)
|
|
0.1
|
|
301.3
|
|
(32.1)
|
|
235.6
|
|
$
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
525.6
|
|
282.2
|
|
378.0
|
|
111.3
|
|
(143.3)
|
|
1,153.8
|
|
$
2.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings
(Loss)
|
|
599.4
|
|
317.6
|
|
314.9
|
|
186.8
|
|
(179.5)
|
|
1,239.2
|
|
$
2.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact
of
Commodity Hedging Activities
|
(c)
|
—
|
|
—
|
|
—
|
|
(135.9)
|
|
—
|
|
(135.9)
|
|
(0.27)
|
|
|
Pending Sale of
Kentucky
Operations
|
(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
75.8
|
|
75.8
|
|
0.15
|
|
|
Mark-to-Market Impact
of Certain
Investments
|
(g)
|
—
|
|
—
|
|
—
|
|
—
|
|
2.3
|
|
2.3
|
|
—
|
|
|
Gain on Sale of Mineral
Rights
|
(h)
|
—
|
|
—
|
|
—
|
|
(91.9)
|
|
—
|
|
(91.9)
|
|
(0.18)
|
|
|
Impairment of
Investment in Flat
Ridge 2
|
(i)
|
—
|
|
—
|
|
—
|
|
146.6
|
|
—
|
|
146.6
|
|
0.29
|
|
|
Accumulated Deferred
Income
Tax Adjustments
|
(j)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.0)
|
|
(2.0)
|
|
—
|
|
Total Special
Items
|
|
—
|
|
—
|
|
—
|
|
(81.2)
|
|
76.1
|
|
(5.1)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss)
(non-GAAP)
|
|
599.4
|
|
317.6
|
|
314.9
|
|
105.6
|
|
(103.4)
|
|
1,234.1
|
|
$
2.42
|
|
(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 expected 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 impact
of mark-to-market on certain investments
|
(h)
|
Represents the gain on
the sale of certain mineral rights
|
(i)
|
Represents the impact
of the write-off of AEP's investment in the Flat Ridge 2 wind
farm joint venture
|
(j)
|
Represents the impact
of out-of-period adjustments related to accumulated deferred income
taxes
|
American Electric
Power
|
Summary of Selected
Sales Data
|
Regulated Connected
Load
|
(Data based on
preliminary, unaudited results)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30
|
ENERGY &
DELIVERY SUMMARY
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
Vertically
Integrated Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
14,431
|
|
16,264
|
|
(11.3) %
|
Commercial
|
|
11,095
|
|
11,429
|
|
(2.9) %
|
Industrial
|
|
16,955
|
|
17,068
|
|
(0.7) %
|
Miscellaneous
|
|
1,066
|
|
1,122
|
|
(5.0) %
|
Total
Retail
|
|
43,547
|
|
45,883
|
|
(5.1) %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
6,744
|
|
8,134
|
|
(17.1) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
50,291
|
|
54,017
|
|
(6.9) %
|
|
|
|
|
|
|
|
Transmission &
Distribution Utilities
|
|
|
|
|
|
|
Retail Electric
(in millions of kWh):
|
|
|
|
|
|
|
Residential
|
|
12,176
|
|
13,566
|
|
(10.2) %
|
Commercial
|
|
14,137
|
|
12,940
|
|
9.3 %
|
Industrial
|
|
13,199
|
|
12,577
|
|
4.9 %
|
Miscellaneous
|
|
345
|
|
368
|
|
(6.3) %
|
Total
Retail (b)
|
|
39,857
|
|
39,451
|
|
1.0 %
|
|
|
|
|
|
|
|
Wholesale Electric (in millions of kWh): (a)
|
|
881
|
|
1,136
|
|
(22.4) %
|
|
|
|
|
|
|
|
Total
KWHs
|
|
40,738
|
|
40,587
|
|
0.4 %
|
(a)
|
Includes off-system
sales, municipalities and cooperatives, unit power and other
wholesale customers
|
(b)
|
Represents energy
delivered to distribution customers
|
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SOURCE American Electric Power