American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Non-Deal Roadshow (June 2025)
26 slides from American Electric Power's roadshow presentation, Jun 23, 2025
Slide 1: June Investor Meetings
June Investor Meetings New York City June 23-24, 2025 AEP CONFIDENTIAL
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue” and similar expressions, and include statements reflecting future
Slide 3: Attractive Footprint Across High-Growth Regions
Attractive Footprint Across High-Growth Regions ~10%-12% $54B 95% TOTAL SHAREHOLDER 2025-2029 CAPITAL REGULATED ELECTRIC RETURN FORECAST UTILITY2 Targeted long-term EPS growth of 6%-8% No incremental equity needed to Pure-play, integrated platform and dividend yield of ~4% fund this plan 55% 40K 29G
Slide 4: Key Messages
Key Messages FINANCIAL COMMITMENTS Financial Strength including 2025 guidance of $5.75-$5.95, LT growth rate of 6%-8% and FFO/Debt targeted range of 14%-15% $54B Base Capital Plan All Anticipated Equity Needs Completed1 through 2029 with up to $10B of through the $2.3B equity sale and the $2.82B min
Slide 5: 2025 Regulatory Successes Pave the Way
2025 Regulatory Successes Pave the Way Regulatory Win: Finance Strategy Regulatory Wins: Cost Recovery ✓ June 2025: Successfully closed on the minority interest ✓ February 2025: KPCo’s appeal to recover the annual transmission transmission transaction on 6/5/2025 expense of $14M was approved Regulat
Slide 6: Attractive Growth Opportunities
Attractive Growth Opportunities Normalized Total Retail GWh Sales Retail Sales Growth % Change vs. Prior Year 2024 Actual Retail Sales 2027 Projected Retail Sales 10% 8.8% 8.9% 8.4% Industrial Residential 30% 25% 8% Industrial Residential 34% 32% 6% 234,000 182,000 GWh 4% 3.0% GWh 2.8% 2.5% 2.1% 2%
Slide 7: Demonstrated Diverse Customer Demand
Demonstrated Diverse Customer Demand $13B Data Centers Columbus, OH Area Nearly 180 GW in ~2.1 GW at Buildout Interconnection Queue $11B Data Centers New Carlisle, IN $7B Data Centers Load Growth ~2.2 GW at Buildout Columbus, OH Area Summary 2025-2029 ~1.2 GW at Buildout 20+ GW1 in Load $1B Lithium
Slide 8: 2025-2029 Capital Forecast of $54B
2025-2029 Capital Forecast of $54B Regulated Environmental Generation $0.3B • 0% Other Generation $1.4B • 3% Corporate $3.8B • 7% 100% of capital allocated to Nuclear regulated businesses Generation $0.5B • 1% On a system average, we expect rates to go up by less than 3% annually over the Regulated
Slide 9: Customer-Focused Growth Capital
Customer-Focused Growth Capital Cumulative change from 2023 base (in billions) $25 $24 $23 $22 $37.6B $21 2023 RATE BASE PROXY $20 $31.8B $18.7 $19 $18 Vertically Integrated Utilities $34.8B $17 $26.3B $16.2 $16 $15 T&D Utilities $18.3B $14 $13.7 $13 $19.2B $11.9 Transcos/JVs $12.3B $12 $11 $10.1 $9
Slide 10: Transmission Delivering Significant Value
Transmission Delivering Significant Value $4.09 $50B $3.79 $3.57 $3.40 $3.20 $40B $2.99 $25B $30B Transmission Rate Base $20B $22B $19B and Earnings Per Share $17B $20B $15B $10B $18B $19B $15B $16B $17B $13B $0B 2024A 2025E 2026E 2027E 2028E 2029E Rate base of AEP Transmission Holdco Rate base of t
Slide 11: 2025-2029 Financing Plan De-risked
2025-2029 Financing Plan De-risked ($ in billions) 21.2 (0.5) (13.4) Securitization Amortization $(54.4) 2.3 0.5 2.8 Dividends2 $41.5 Dividend Future Debt and Other Completed Reinvestment Issuances Net Investing3 Successfully All Anticipated Plan of of Debt Closed Equity Funding Up to $100M Maturiti
Slide 12: Appendix 1: 2025-2029 Capital Forecast
APPENDIX 1 2025-2029 Capital Forecast
Slide 13: 2025-2029 Capital Forecast: Transmission
2025-2029 Capital Forecast: Transmission DRIVERS 2025-2029 Asset renewal investments based on condition, CAPEX ASSET performance and risk to reduce customer outages REPLACEMENT Strengthening the electric and interruption times transmission grid and New customer connections and system upgrades meetin
Slide 14: 2025-2029 Capital Forecast: Distribution
2025-2029 Capital Forecast: Distribution 2025-2029 DRIVERS CAPEX RELIABILITY, Asset renewal and reliability investments including RESILIENCY & pole, conductor, cutout, station transformer and AUTOMATION breaker replacements and automated technology Modernizing the electric distribution system to GRO
Slide 15: 2025-2029 Capital Forecast: New Generation
2025-2029 Capital Forecast: New Generation 2025-2029 CAPEX RFPs IN PROGRESS1 APCo I&M KPCo PSO SWEPCO RFPs Issued May 2025 September 2024 November 2023 Wind Solar 800 MW 1,500 MW of SPP 4,000 MW Storage accredited capacity Diversifying electric Natural Gas - generation to support resource adequacy a
Slide 16: 2025-2029 Capital Forecast by Subsidiary
2025-2029 Capital Forecast by Subsidiary $ in millions, excludes AFUDC 2025E 2026E 2027E 2028E 2029E Total AEP Generating Company $9 $9 $7 $3 - $ 28 AEP Ohio $ 931 $ 1,004 $ 991 $ 928 $ 998 $ 4,852 AEP Texas Company $ 1,846 $ 2,044 $ 1,790 $ 1,824 $ 1,806 $ 9,310 AEP Transmission Holdco $ 1,509 $ 1,
Slide 17: Appendix 2: Operating Earnings and Debt Summary
APPENDIX 2 Operating Earnings and Debt Summary
Slide 18: 1st Quarter Operating Earnings
1 Quarter Operating Earnings st Key Drivers Q1 2025 vs. Q1 2024 $1.54 0.05 Per Share 0.04 0.02 0.07 Income Taxes $0.03 Distributed $(0.03) Resources Other $0.02 0.09 Invest Growth $0.03 Retail $0.03 Other $0.01 $1.27 Wholesale $0.03 Rate Changes $0.08 Income Taxes $(0.01) Per Share Weather $0.06 Nor
Slide 19: Load Growth Supports Financial Strength
Load Growth Supports Financial Strength AEP Normalized Residential GWh Sales AEP Normalized Commercial GWh Sales % Change vs. Prior Year % Change vs. Prior Year Customer commitments for 4% 26% 23.9% approximately 20 GW1 of 2% 0.7% 0.3% 20% 19.0% 16.1% 0.1% 12.4% load through 2029 driven 14% 12.3% 12
Slide 20: Regulated Earned Returns
Regulated Earned Returns Regulated Earned ROE was 9.3% as of twelve months ended 3/31/2025, demonstrating continuous improvement Twelve Months Ended 3/31/2025 ROE by Company AEP Regulated ROE Trend (non-GAAP operating earnings, not weather normalized) 14% 12% 9.4% 9.3% 10.7% 10.2% 10.3% 10% 9.2% 8%
Slide 21: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security AEP Ohio APCo – West Virginia1 SWEPCO – Arkansas Docket # 25-392-EL-AIR Docket # 24-0854-E-42T Docket # 25-003-U Filing Date 5/30/2025 Filing Date 11/1/2024 Filing Da
Slide 22: Continuous Focus on O&M Efficiency
Continuous Focus on O&M Efficiency Inflation ~4.4% Avg. 2025E inflation Inflation ~1.5% Avg. 2022A – 2025E gap of ~$0.9B $6B 2018A – 2021A O&M discipline over time Wires and Other Generation Inflation amid rising costs and growing $5B rate base helps keep customer rates affordable Total Non-fuel O&M
Slide 23: Liquidity and Credit Metrics
Liquidity and Credit Metrics LIQUIDITY SUMMARY 3/31/2025 FFO/DEBT TRAILING 12 MONTHS FFO/Debt as of 3/31/2025 ($ in millions) Amount Maturity (The minority interest transmission transaction, closed on 13.2% 6/5/2025, is expected to be credit accretive by 40-60 bps) Revolving Credit Facility $ 5,000
Slide 24: Credit Ratings and Downgrade Thresholds
Credit Ratings and Downgrade Thresholds Moody’s S&P Fitch Senior Senior Senior Company Unsecured Outlook Unsecured Outlook Unsecured Outlook American Electric Power Baa2 S BBB N BBB S Company, Inc. AEP, Inc. Short Term Rating2 P2 S A-2 S NR NR AEP Texas Inc. Baa3 S BBB+ N BBB+ S AEP Transmission Com
Slide 25: 2025 Debt Issuances and Maturities
2025 Debt Issuances and Maturities 1 $3,150 $2,800 $2,450 $2,100 $1,750 (millions) $1,400 $1,050 $700 $350 $- AEP, Inc. AEG AEP Texas APCo/WPCo I&M KPCo AEP Ohio PSO SWEPCO Transco 2025 Maturities 2025 Expected Issuances 1 2025 debt issuances are based on the forecast provided at the 2024 EEI Financ
Slide 26: Slide 26
American Electric Power Company — Non-Deal Roadshow (June 2025) on 6ix