American Electric Power will continue its progress toward a clean energy future by investing in its regulated businesses and renewable generation. The company’s 2021 operating earnings (earnings excluding special items) guidance range of $4.51 to $4.71 per share reflects its projected annual operating earnings growth rate of 5% to 7%. AEP management will discuss the company’s strategy and financial growth plans during the annual Edison Electric Institute Financial Conference Nov. 9-10, which will be held virtually this year.

Operating earnings could differ from those prepared in accordance with Generally Accepted Accounting Principles (GAAP) for matters such as impairments, divestitures or changes in accounting principles. AEP is unable to forecast if any of these items will occur or any amounts that may be recorded for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.

The company plans to invest $37 billion in capital from 2021 through 2025, with the bulk allocated to regulated businesses and renewables. AEP’s capital plan includes $26.7 billion in transmission and distribution operations investments to continue updating infrastructure and implementing new technologies to benefit customers. During the same period, AEP plans to invest $2.8 billion in regulated renewable generation and $2.1 billion in competitive, contracted renewable projects.

“As AEP transitions to a cleaner energy future, we’re creating new solutions for customers, while also bringing value to our shareholders. The company’s capital investments reflect our commitment to enhancing service and delivering reliable, clean energy and advanced technologies that exceed our customers’ expectations,” said Nicholas K. Akins, AEP chairman, president and chief executive officer.

“We plan to invest 14% of our capital through 2025 in renewable energy within and outside our traditional service territory, and we project renewables will represent approximately 40% of our fuel mix by 2030. As part of our ongoing efforts to diversify our energy portfolio, AEP received approval this year to move forward with the North Central wind facilities, which will bring 1,485 megawatts of clean energy to Southwestern Electric Power Company and Public Service Company of Oklahoma customers in Arkansas, Louisiana and Oklahoma.

“Another significant piece of our capital plan is our investment in wires, with 71% allocated to improving and updating the energy grid. By integrating new technologies to optimize distribution and transmission networks, we’ll be better equipped to continue delivering reliable and affordable clean energy to customers.

“We remain committed to improving our environmental footprint and leading by example as we work toward a clean energy future. We announced a goal to replace 100% of the company’s 2,300 cars and light-duty trucks with EV alternatives by 2030, and we plan to transition medium- and heavy-duty vehicles as electric or hybrid models become available.

“AEP’s strong financial performance continues to provide value to our shareholders. This year, we increased our quarterly dividend by 4 cents to 74 cents a share and delivered our 442nd consecutive quarterly cash dividend,” Akins said.

KeyFacts Energy: AEP Renewables US country profile