AEP Reports Second-Quarter 2024 Earnings, Reaffirms Guidance
- Second-quarter 2024 GAAP earnings of
$0.64 per share; operating earnings of$1.25 per share - Company reaffirms 2024 operating earnings (non-GAAP) guidance of
$5.53 to$5.73 per share and long-term growth rate of 6% to 7% - Strong data processing load in the commercial customer class positions AEP for further growth, supported by industry-leading transmission system
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Second Quarter
ended |
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Year-to-date ended |
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|
2024 |
2023 |
Variance |
|
2024 |
2023 |
Variance |
Revenue ($ in billions): |
4.6 |
4.4 |
0.2 |
|
9.6 |
9.1 |
0.5 |
|
Earnings ($ in millions): |
|
|
|
|
|
|
|
|
|
GAAP |
340.3 |
521.2 |
(180.9) |
|
1,343.4 |
918.2 |
425.2 |
|
Operating (non-GAAP) |
662.0 |
582.2 |
79.8 |
|
1,332.4 |
1,153.8 |
178.6 |
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EPS ($): |
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|
GAAP |
0.64 |
1.01 |
(0.37) |
|
2.55 |
1.78 |
0.77 |
|
Operating (non-GAAP) |
1.25 |
1.13 |
0.12 |
|
2.52 |
2.24 |
0.28 |
|
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EPS based on 529 million shares 2Q 2024, 515 million shares 2Q 2023, 528 million shares YTD 2024 and 515 million shares YTD 2023 |
Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items. The difference between 2024 GAAP and operating earnings for the quarter was largely due to a revenue refund provision associated with the Turk Plant, impacts of the
"AEP's investments in a modern, affordable and reliable energy system continue to benefit our customers and communities while supporting our earnings results. Our solid performance in the first half of the year and our team's proven ability to efficiently manage the business allow us to reaffirm our 2024 earnings guidance range," said
"We're seeing unprecedented growth in portions of our service territory, supported by our robust transmission network and focus on economic development. Commercial load increased 12.4% over second quarter last year, driven by a gain of more than 20% at our Transmission & Distribution companies, as new data processing facilities came online. We currently have commitments from customers for more than 15 gigawatts of incremental load by the end of the decade. We continue to see strong interest in
"To help meet the growing energy needs of our customers and communities, we're making steady progress transforming our generation fleet with active requests for proposals and plans to add more than 20 gigawatts of new resources over the next decade. In June,
"As part of our efforts to address the impacts of inflation, we initiated a voluntary workforce reduction program in the second quarter. Approximately 1,000 employees participated, and I'm grateful for their service to our company and our customers. We'll begin to see the benefits of the program in the second half of the year, helping to offset higher interest rates and other inflationary pressures as we reinvest in the business to deliver for our customers," Fowke said.
"I'm proud of what our team has achieved this year and excited for the opportunities ahead for AEP as
SUMMARY OF RESULTS BY SEGMENT |
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GAAP Earnings |
2Q 24 |
2Q 23 |
Variance |
YTD 24 |
YTD 23 |
Variance |
|
65.7 |
278.1 |
(212.4) |
626.5 |
539.1 |
87.4 |
|
146.8 |
176.7 |
(29.9) |
297.1 |
302.4 |
(5.3) |
AEP Transmission Holdco (c) |
200.7 |
196.4 |
4.3 |
409.4 |
377.9 |
31.5 |
Generation & Marketing (d) |
(4.8) |
(32.3) |
27.5 |
132.8 |
(190.0) |
322.8 |
All Other |
(68.1) |
(97.7) |
29.6 |
(122.4) |
(111.2) |
(11.2) |
Total GAAP Earnings (Loss) |
340.3 |
521.2 |
(180.9) |
1,343.4 |
918.2 |
425.2 |
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|
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|
|
|
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Operating Earnings (non-GAAP) |
2Q 24 |
2Q 23 |
Variance |
YTD 24 |
YTD 23 |
Variance |
|
244.8 |
260.4 |
(15.6) |
545.1 |
525.6 |
19.5 |
|
215.3 |
156.5 |
58.8 |
365.6 |
282.2 |
83.4 |
AEP Transmission Holdco (c) |
208.9 |
196.5 |
12.4 |
417.6 |
378.0 |
39.6 |
Generation & Marketing (d) |
61.0 |
66.1 |
(5.1) |
126.4 |
111.3 |
15.1 |
All Other |
(68.0) |
(97.3) |
29.3 |
(122.3) |
(143.3) |
21.0 |
Total Operating Earnings (non-GAAP) |
662.0 |
582.2 |
79.8 |
1,332.4 |
1,153.8 |
178.6 |
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A full reconciliation of GAAP earnings with operating earnings is included in tables at the end of this news release. |
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a. |
Includes |
b. |
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c. |
Includes wholly-owned transmission-only subsidiaries and transmission-only joint ventures |
d. |
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EARNINGS GUIDANCE
AEP management reaffirms its 2024 operating earnings guidance range of
Reflecting special items recorded through the second quarter, the estimated earnings per share on a GAAP basis would be
2024 EPS Guidance Reconciliation |
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Estimated EPS on a GAAP basis |
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to |
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Mark-to-market impact of commodity |
|
(0.11) |
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Remeasurement of Excess ADIT Regulatory Liability |
|
(0.09) |
|
|
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|
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Impact of NOLC on Retail Rate Making |
|
(0.50) |
|
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|
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Disallowance - |
|
0.02 |
|
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|
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Provision for Refund - Turk Plant |
|
0.24 |
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Pending Sale of |
|
0.02 |
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|
|
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Severance Charges |
|
0.18 |
|
|
|
|
|
Federal EPA Coal Combustion Residuals |
|
0.21 |
|
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|
|
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Operating EPS Guidance |
|
to |
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WEBCAST
AEP's quarterly discussion with financial analysts and investors will be broadcast live over the internet at
AEP's earnings are prepared in accordance with accounting principles generally accepted in
ABOUT AEP
At
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
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Financial Results for the Second Quarter of 2024 |
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Reconciliation of GAAP to Operating Earnings (non-GAAP) |
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2024 |
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Vertically |
|
Transmission |
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AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
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($ in millions) |
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GAAP Earnings (Loss) |
|
65.7 |
|
146.8 |
|
200.7 |
|
(4.8) |
|
(68.1) |
|
340.3 |
|
$ 0.64 |
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Special Items (b) |
|
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|
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|
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|
|
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Mark-to-Market Impact of |
(c) |
(3.4) |
|
— |
|
— |
|
(3.8) |
|
— |
|
(7.2) |
|
(0.02) |
|
Provision for Refund – Turk |
(d) |
126.4 |
|
— |
|
— |
|
— |
|
— |
|
126.4 |
|
0.24 |
|
Remeasurement of Excess |
(e) |
(12.2) |
|
— |
|
— |
|
— |
|
— |
|
(12.2) |
|
(0.02) |
|
Pending Sale of AEP OnSite |
(f) |
— |
|
— |
|
— |
|
10.4 |
|
— |
|
10.4 |
|
0.02 |
|
Severance Charges |
(g) |
57.7 |
|
27.2 |
|
8.2 |
|
0.4 |
|
0.1 |
|
93.6 |
|
0.18 |
|
Federal EPA Coal Combustion |
(h) |
10.6 |
|
41.3 |
|
— |
|
58.8 |
|
— |
|
110.7 |
|
0.21 |
Total Special Items |
|
179.1 |
|
68.5 |
|
8.2 |
|
65.8 |
|
0.1 |
|
321.7 |
|
$ 0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings (Loss) (non-GAAP) |
|
244.8 |
|
215.3 |
|
208.9 |
|
61.0 |
|
(68.0) |
|
662.0 |
|
$ 1.25 |
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Financial Results for the Second Quarter of 2023 |
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Reconciliation of GAAP to Operating Earnings (non-GAAP) |
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2023 |
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Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
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($ in millions) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings (Loss) |
|
278.1 |
|
176.7 |
|
196.4 |
|
(32.3) |
|
(97.7) |
|
521.2 |
|
$ 1.01 |
|
|
|
|
|
|
|
|
|
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|
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|
|
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Special Items (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact of |
(c) |
(13.4) |
|
— |
|
— |
|
98.4 |
|
— |
|
85.0 |
|
0.17 |
|
Pending Sale of Unregulated |
(i) |
— |
|
— |
|
— |
|
— |
|
0.4 |
|
0.4 |
|
— |
|
Change in Texas Legislation |
(j) |
(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) |
|
260.4 |
|
156.5 |
|
196.5 |
|
66.1 |
|
(97.3) |
|
582.2 |
|
$ 1.13 |
|
|
(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 a provision for revenue refunds on certain capitalized costs associated with the Turk Plant |
(e) |
Represents the impact of the remeasurement of excess accumulated deferred income taxes in |
(f) |
Represents the loss on the expected sale of |
(g) |
Represents the impact of AEP's recently announced workforce reduction |
(h) |
Represents the impact of the Federal EPA Revised Coal Combustion Residuals Rule |
(i) |
Represents an adjustment to the loss on the expected sale of the Competitive Contracted Renewable Portfolio and other related third-party transaction costs |
(j) |
Represents the impact of recent legislation in |
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Summary of Selected Sales Data |
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Regulated Connected Load |
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(Data based on preliminary, unaudited results) |
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Three Months Ended |
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ENERGY & DELIVERY SUMMARY |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
6,672 |
|
6,332 |
|
5.4 % |
Commercial |
|
6,084 |
|
5,723 |
|
6.3 % |
Industrial |
|
8,749 |
|
8,660 |
|
1.0 % |
Miscellaneous |
|
568 |
|
545 |
|
4.2 % |
Total Retail |
|
22,073 |
|
21,260 |
|
3.8 % |
|
|
|
|
|
|
|
|
|
3,176 |
|
3,484 |
|
(8.8) % |
|
|
|
|
|
|
|
Total KWHs |
|
25,249 |
|
24,744 |
|
2.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
6,593 |
|
5,910 |
|
11.6 % |
Commercial |
|
9,209 |
|
7,393 |
|
24.6 % |
Industrial |
|
6,826 |
|
6,673 |
|
2.3 % |
Miscellaneous |
|
180 |
|
177 |
|
1.7 % |
Total Retail (b) |
|
22,808 |
|
20,153 |
|
13.2 % |
|
|
|
|
|
|
|
|
|
253 |
|
428 |
|
(40.9) % |
|
|
|
|
|
|
|
Total KWHs |
|
23,061 |
|
20,581 |
|
12.0 % |
|
|
(a) |
Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers |
(b) |
Represents energy delivered to distribution customers |
|
||||||||||||||||||
Financial Results for Year-to-Date 2024 |
||||||||||||||||||
Reconciliation of GAAP to Operating Earnings (non-GAAP) |
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2024 |
|||||||||||||||
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|
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Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
||
|
|
|
($ in millions) |
|
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|||||||||||||
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|
|
|
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|
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|
|
|
|
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GAAP Earnings (Loss) |
|
626.5 |
|
297.1 |
|
409.4 |
|
132.8 |
|
(122.4) |
|
1,343.4 |
|
$ 2.55 |
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|||
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Special Items (b) |
|
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|
|
|
|
|
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|
|
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|||
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Mark-to-Market Impact of |
(c) |
17.0 |
|
— |
|
— |
|
(76.0) |
|
— |
|
(59.0) |
|
(0.11) |
|
||
|
Remeasurement of Excess ADIT |
(d) |
(44.6) |
|
— |
|
— |
|
— |
|
— |
|
(44.6) |
|
(0.09) |
|
||
|
Impact of NOLC on Retail Rate |
(e) |
(259.6) |
|
— |
|
— |
|
— |
|
— |
|
(259.6) |
|
(0.50) |
|
||
|
Disallowance - |
(f) |
11.1 |
|
— |
|
— |
|
— |
|
— |
|
11.1 |
|
0.02 |
|
||
|
Provision for Refund - Turk Plant |
(g) |
126.4 |
|
— |
|
— |
|
— |
|
— |
|
126.4 |
|
0.24 |
|
||
|
Pending Sale of AEP OnSite |
(h) |
— |
|
— |
|
— |
|
10.4 |
|
— |
|
10.4 |
|
0.02 |
|
||
|
Severance Charges |
(i) |
57.7 |
|
27.2 |
|
8.2 |
|
0.4 |
|
0.1 |
|
93.6 |
|
0.18 |
|
||
|
Federal EPA Coal Combustion |
(j) |
10.6 |
|
41.3 |
|
— |
|
58.8 |
|
— |
|
110.7 |
|
0.21 |
|
||
Total Special Items |
|
(81.4) |
|
68.5 |
|
8.2 |
|
(6.4) |
|
0.1 |
|
(11.0) |
|
$ (0.03) |
|
|||
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|
|
|
|
|
|
|
|
||
Operating Earnings (Loss) (non-GAAP) |
|
545.1 |
|
365.6 |
|
417.6 |
|
126.4 |
|
(122.3) |
|
1,332.4 |
|
$ 2.52 |
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|||
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Financial Results for Year-to-Date 2023 |
||||||||||||||||||
Reconciliation of GAAP to Operating Earnings (non-GAAP) |
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2023 |
|||||||||||||||
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|
|
Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
||
|
|
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($ in millions) |
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|||||||||||||
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|
||
GAAP Earnings (Loss) |
|
539.1 |
|
302.4 |
|
377.9 |
|
(190.0) |
|
(111.2) |
|
918.2 |
|
$ 1.78 |
|
|||
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Special Items (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Mark-to-Market Impact of |
(c) |
(9.2) |
|
— |
|
— |
|
212.8 |
|
— |
|
203.6 |
|
0.40 |
|
||
|
Termination of the Sale of |
(k) |
— |
|
— |
|
— |
|
— |
|
(33.7) |
|
(33.7) |
|
(0.06) |
|
||
|
Pending Sale of Unregulated |
(l) |
— |
|
— |
|
— |
|
88.5 |
|
1.6 |
|
90.1 |
|
0.17 |
|
||
|
Change in Texas Legislation |
(m) |
(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 |
|
|||
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|
|
|
|
|
|
|
|
|
|
||
Operating Earnings (Loss) (non-GAAP) |
|
525.6 |
|
282.2 |
|
378.0 |
|
111.3 |
|
(143.3) |
|
1,153.8 |
|
$ 2.24 |
|
|||
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|
(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 the remeasurement of excess accumulated deferred income taxes in |
(e) |
Represents the impact of receiving |
(f) |
Represents the impact of a disallowance recorded at SWEPCo on the remaining net book value of the |
(g) |
Represents a provision for revenue refunds on certain capitalized costs associated with the Turk Plant |
(h) |
Represents the loss on the expected sale of |
(i) |
Represents the impact of AEP's recently announced workforce reduction program |
(j) |
Represents the impact of the Federal EPA Revised Coal Combustion Residuals Rule |
(k) |
Represents an adjustment to the loss on the expected sale of the Kentucky Operations which was terminated in |
(l) |
Represents the loss on the sale of the Competitive Contracted Renewable Portfolio and other related third-party transaction costs |
(m) |
Represents the impact of recent legislation in |
|
||||||
Summary of Selected Sales Data |
||||||
Regulated Connected Load |
||||||
(Data based on preliminary, unaudited results) |
||||||
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||
ENERGY & DELIVERY SUMMARY |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
15,232 |
|
14,431 |
|
5.6 % |
Commercial |
|
11,853 |
|
11,095 |
|
6.8 % |
Industrial |
|
17,001 |
|
16,955 |
|
0.3 % |
Miscellaneous |
|
1,106 |
|
1,066 |
|
3.8 % |
Total Retail |
|
45,192 |
|
43,547 |
|
3.8 % |
|
|
|
|
|
|
|
|
|
6,939 |
|
6,744 |
|
2.9 % |
|
|
|
|
|
|
|
Total KWHs |
|
52,131 |
|
50,291 |
|
3.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
12,873 |
|
12,176 |
|
5.7 % |
Commercial |
|
17,200 |
|
14,137 |
|
21.7 % |
Industrial |
|
13,638 |
|
13,199 |
|
3.3 % |
Miscellaneous |
|
360 |
|
345 |
|
4.3 % |
Total Retail (b) |
|
44,071 |
|
39,857 |
|
10.6 % |
|
|
|
|
|
|
|
|
|
843 |
|
881 |
|
(4.3) % |
|
|
|
|
|
|
|
Total KWHs |
|
44,914 |
|
40,738 |
|
10.3 % |
|
|
(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 multimedia:https://www.prnewswire.com/news-releases/aep-reports-second-quarter-2024-earnings-reaffirms-guidance-302209241.html
SOURCE