Here are 1-3 brief analogies for American Electric Power (AEP):

• AEP is like "Comcast for electricity."
• AEP is like "AT&T for electricity."

• Electric Generation: AEP operates power plants that produce electricity from various fuel sources, including coal, natural gas, nuclear, and renewables.
• Electric Transmission: AEP owns and maintains a vast network of high-voltage transmission lines that transport electricity from generation sites to local distribution networks.
• Electric Distribution: AEP manages the local infrastructure, including substations and power lines, that deliver electricity directly to residential, commercial, and industrial customers.
• Retail Electric Service: AEP sells electricity and related services to end-use customers within its regulated service territories.

American Electric Power (AEP) is a public utility company that primarily sells electricity directly to end-users within its service territory, rather than selling to other companies for resale.

AEP serves a diverse customer base, which can be categorized as follows:

• Residential Customers: This category includes individual households and residential properties within AEP's service areas across its 11 states of operation. These customers use electricity for lighting, heating, cooling, appliances, and other household needs.
• Commercial Customers: This segment comprises a wide range of businesses, including retail stores, offices, restaurants, educational institutions, government facilities, and small to medium-sized enterprises. Their electricity consumption varies based on the type and size of the business.
• Industrial Customers: This category consists of large manufacturing plants, heavy industries, data centers, and other large-scale facilities that require substantial amounts of electricity for their operations. These customers typically have the highest demand and consumption rates.

Julie Sloat
Chief Executive Officer

Julie Sloat has served as the Chief Executive Officer of American Electric Power (AEP) since January 2023 and as President since August 2022. Prior to her current role, she held various executive positions at AEP, including Chief Financial Officer and President of AEP Ohio. Before joining AEP in 1999, Sloat was Vice President of Corporate Finance and Investor Relations at Tween Brands, Inc. She also worked as a bank debt underwriter and buy-side equity analyst at Bank One (now JP Morgan Chase) and for M&T Mortgage Group.

Charles E. Zebula
Executive Vice President and Chief Financial Officer

Charles E. Zebula was appointed Executive Vice President and Chief Financial Officer of AEP in October 2023. He has a long tenure with AEP, having joined in 1998, and has served in various leadership roles, including Executive Vice President – Portfolio Optimization and Executive Vice President – Energy Supply. Prior to AEP, Zebula was a senior associate for Putman, Hayes & Bartlett, an economic and management consulting firm, and held process engineer positions at ICF Kaiser Engineers and GAF Corporation. Zebula has been responsible for significant strategic actions to simplify AEP's business, including overseeing the $550 million sale of AEP River Operations in 2015, a $2.1 billion sale of four competitive power plants in 2017, and jointly overseeing the $1.5 billion sale of AEP's unregulated renewables portfolio in 2023.

Therace Risch
Executive Vice President and Chief Information & Technology Officer

Therace Risch is the Executive Vice President and Chief Information & Technology Officer at AEP, responsible for enterprise-wide technology strategy, execution, operations, cyber, telecommunications, innovation, physical security, and aviation. She joined AEP in May 2020. Before her time at AEP, Risch served as Executive Vice President and Chief Information Officer for JCPenney, where she played a key role in the company's stabilization and turnaround by implementing new technology solutions. She was also Executive Vice President and Chief Information Officer at COUNTRY Financial and spent a decade at Target Corp. in various technology roles.

Antonio P. Smyth
Executive Vice President - Grid Solutions

Antonio P. Smyth is the Executive Vice President of Grid Solutions at AEP. He previously served as Senior Vice President of Transmission Ventures, Strategy, and Policy at AEP. Prior to that, he was President and Chief Operating Officer of AEP Ohio and also held the role of Vice President of Transmission Strategy and Business Development. He joined AEP in 2000. Smyth earned a bachelor's degree in business administration from Bowling Green State University and a master's degree in business administration from the University of Toledo.

Phil Ulrich
Executive Vice President and Chief Human Resources Officer

Phil Ulrich serves as the Executive Vice President and Chief Human Resources Officer for American Electric Power. He is responsible for all aspects of human resources, including talent acquisition, compensation, benefits, and employee relations. Prior to this role, Ulrich was Senior Vice President of Human Resources. He joined AEP in 2007 and has held various leadership positions within the human resources department. Before joining AEP, he held HR leadership roles at other companies, including Limited Brands and JPMorgan Chase & Co. Ulrich holds a bachelor's degree from Miami University and a master's degree in labor and human resources from The Ohio State University.

The key risks to American Electric Power (AEP) primarily revolve around its heavily regulated operating environment, ambitious capital expenditure plans, and inherent operational challenges.

1. Regulatory Risk

   AEP operates in a highly regulated industry, and its financial health largely depends on state and federal regulators allowing it to recover costs for extensive infrastructure investments and earn a fair return. Compliance with legislative and regulatory requirements can lead to increased costs and penalties. Delays in rate cases can mean AEP finances new infrastructure without immediate cost recovery. Furthermore, changes in regulatory policies or adverse political shifts at the state level could reverse favorable rulings, limiting AEP's ability to recover costs and potentially lowering the value of its utility facilities. Environmental regulations, in particular, necessitate significant capital investments for compliance (e.g., related to greenhouse gas emissions and pollution controls), and the ability to recover these costs through regulated rates is critical.

2. Capital Spending and Financing Risk

   AEP is undertaking a massive multi-year capital plan, projected at $72 billion for 2026-2030, which is one of the largest in the industry. The successful execution and financing of such an undertaking come with substantial risks. These include escalating costs for capital, materials, and labor, supply chain constraints, and potential cost overruns due to inflation, which could diminish the initial yields on investments. The company's financial metrics have already been pressured by this robust spending, leading to a negative outlook from credit rating agencies due to its funds from operations (FFO) to debt ratio remaining below desired thresholds. Restricted access to capital markets, increased borrowing costs, or the failure of anticipated capital sources (such as asset sales or securitizations) to materialize could significantly constrain AEP's ability to fund its growth and negatively impact its financial condition.

3. Operational and Safety Risks

   Operating a vast electricity network inherently involves significant operational and safety risks. Contact with electrical current or equipment, including energized downed power lines or equipment malfunctions, poses hazards to both AEP's workforce and the general public. The operation of transmission, distribution assets, and power generation facilities also carries risks such as causing or contributing to wildfires, which can lead to substantial liabilities not always fully covered by insurance. Furthermore, AEP depends on the reliability of its own and other non-affiliated transmission facilities to deliver power, and any disruptions or inadequate capacity could limit its ability to sell and deliver wholesale electricity. The ability to attract and retain a skilled workforce is also crucial for executing complex grid modernization projects within its ambitious capital plan.

The proliferation of Distributed Energy Resources (DERs), such as rooftop solar and behind-the-meter battery storage, poses a clear emerging threat. As these technologies become more affordable and efficient, a growing number of AEP's customers are generating and storing their own electricity, thereby reducing their reliance on grid-supplied power. This erodes AEP's sales volume, impacting revenue streams traditionally tied to kilowatt-hour sales and challenging the utility's ability to recover fixed infrastructure costs. This trend parallels the disruption seen with Blockbuster's physical movie rental model being supplanted by Netflix's distributed streaming and mail services.

Accelerated energy efficiency and demand reduction also present an emerging threat. Continuous advancements in energy-efficient appliances, smart building technologies, and industrial processes, combined with robust demand-side management programs, lead to a sustained reduction in overall electricity consumption. Similar to DERs, this decrease in demand directly impacts AEP's sales volume and revenue, making it more difficult to cover the significant fixed costs associated with maintaining a vast electric grid. This systematic reduction in demand for the core product challenges the traditional utility business model, much like new digital content platforms reduced the overall demand for traditional cable television subscriptions.

American Electric Power (AEP) primarily operates in the generation, transmission, and distribution of electricity. The addressable market for these services is the demand for electricity within its extensive service territory in the United States.

AEP serves approximately 5.6 million customers across 11 states: Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.

The overall U.S. electricity market provides a basis for sizing AEP's addressable market. In 2023, U.S. retail electricity sales to end-use customers amounted to approximately 3,861 billion kWh (or about 3.9 TWh). The U.S. electricity industry generated revenues of $491 billion in 2023.

Considering AEP's customer base of 5.6 million against the estimated 145 million customers across the U.S. electricity grid, AEP's share represents approximately 3.86% of the total U.S. electricity market by customer count.

Therefore, an estimated addressable market for AEP's core products and services within its operating region (the aforementioned 11 states in the U.S.) can be approximated as follows:

• Market Size by Sales Volume: Approximately 149 TWh (3,861 TWh U.S. total * 3.86%) annually.
• Market Size by Revenue: Approximately $18.96 billion ($491 billion U.S. total * 3.86%) annually.

For comparison, AEP's reported revenue in 2024 was US$19.72 billion, further indicating the scale of its operations within its addressable market.

1. Large-scale Capital Investment Programs

   American Electric Power is implementing extensive capital investment plans, with a projected $72 billion allocated from 2026 through 2030, which was recently updated from a $54 billion to $70 billion five-year plan in Q2 2025. These investments are directed towards enhancing transmission, distribution, and regulated new generation assets, including renewables. This significant capital deployment is expected to drive an increase in the company's rate base, which is forecast to grow at a 10% compound annual growth rate to $128 billion by 2030, directly contributing to revenue growth.

2. Robust Load Growth from Data Centers and Industrial Customers

   AEP anticipates substantial increases in electricity demand, primarily fueled by the accelerating growth of data centers and other industrial customers across its service territories. The company projects 8%-9% annual retail load growth from 2025 to 2027, equating to more than 52 million incremental megawatt hours. AEP has secured 28 gigawatts (GW) of contracted incremental load through 2030, with approximately 79% of this demand attributed to data centers. This unprecedented customer demand necessitates infrastructure expansion, which in turn supports higher revenue.

3. Favorable Regulatory Outcomes and Rate Changes

   The company expects continued revenue growth through constructive regulatory and legislative outcomes. AEP has already secured approximately 80% of its rate-related revenue for 2025 and has seen favorable rate changes act as a significant driver for operating earnings growth. These positive regulatory developments allow AEP to recover its investments and operational costs, contributing to a stable and growing revenue stream.

Share Repurchases

• American Electric Power (AEP) has a share repurchase program in place.

Share Issuance

• In August 2020, AEP issued 15 million equity units, equivalent to a $750 million stated amount, with net proceeds of approximately $732 million, intended to fund capital expenditures and repay debt.
• In March 2025, AEP launched a public offering of $2 billion in common shares, with an option for underwriters to purchase an additional $300 million in shares. The shares were priced at $102.00 per share, and settlement of forward sale agreements is anticipated by December 31, 2026.
• AEP completed a $2.3 billion forward equity issuance in early 2025.

Inbound Investments

• In June 2025, KKR and PSP Investments jointly invested $2.82 billion for a 19.9% equity interest in AEP's Ohio and Indiana Michigan transmission companies.

Outbound Investments

• In August 2023, AEP completed the sale of its 1,365 MW unregulated renewables portfolio, generating approximately $1.2 billion in net proceeds.
• AEP is considering selling its retail and distributed resources businesses, its share of a renewable energy joint venture, and two non-core transmission joint ventures with a net plant investment for AEP of about $551 million.
• AEP holds an 86.5% interest in Transource Energy, LLC, which is involved in a joint venture with Dominion Energy and FirstEnergy Transmission, LLC to develop competitive transmission projects, with approximately $1.1 billion advanced through Transource.

Capital Expenditures

• AEP's five-year capital expenditure plan, announced in late 2025, increased to $72 billion for the period of 2026 through 2030, an increase from a previous $54 billion outlook.
• The $72 billion capital plan allocates approximately 50% ($30 billion) to transmission infrastructure, 40% ($20 billion) to generation improvements, and 10% ($17 billion) to distribution system enhancements.
• These capital investments are primarily focused on meeting surging electricity demand from data centers and industrial clients, supporting an expected 24 GW to 28 GW load growth by 2030, as well as enhancing grid reliability and integrating renewable resources.