AEP is evaluating the potential sale of its ownership in AEP Energy and AEP Onsite Partners, with a target completion in mid-2024, reflecting a focus on core regulated utility operations.

AEP has received regulatory approvals to acquire approximately 2,811 MWs of owned renewable generation facilities and 612 MWs of renewable power purchase agreements, totaling approximately $6.6 billion.

AEP has entered into Capacity Purchase Agreements (CPA) to satisfy operating companies' capacity reserve margins, with various CPA amounts under contract through 2028.

AEP announced a voluntary severance program in April 2024, designed to reduce workforce size and offset increasing operating expenses due to inflation.

AEP entered into transferability agreements to sell 2023 generated PTCs, receiving cash proceeds of approximately $174 million, and expects to continue to explore the ability to efficiently monetize its tax credits.

The company has experienced supply chain disruptions and inflation, which have extended lead times and contributed to higher prices for fuel, materials, labor, and equipment, and a prolonged continuation or a further increase in the severity of these disruptions could reduce future net income and cash flows.

AEP is involved in numerous rate cases and proceedings that can have a material impact on results of operations, cash flows, and financial condition, and the outcomes of these proceedings are uncertain.

AEP faces extensive environmental regulations that require significant capital investment and operational changes, and if AEP cannot recover the costs of environmental compliance, it would reduce future net income and cash flows.

AEP is actively adding new renewable generation facilities to its portfolio, demonstrating a commitment to meeting customer needs while balancing cost and reliability.

The voluntary severance program is designed to reduce the size of AEP's workforce and help offset increasing operating expenses, indicating a focus on managing operational costs.

AEP is actively transitioning from fossil fuel generation and building or acquiring renewable generation, transmission lines and facilities, indicating a focus on innovation and technology in the energy sector.

AEP forecasts approximately $7.5 billion of capital expenditures in 2024 and $35 billion for the four-year period from 2025-2028, primarily for transmission, generation, distribution, regulated renewables and environmental compliance.

AEP has adjusted its near-term CO2 emission reduction target to a 2005 baseline, upgraded its 80% reduction by 2030 target to include full Scope 1 emissions and accelerated its net-zero goal to 2045 for Scope 1 and 2 emissions.

AEP is actively monitoring economic conditions, market demand, regulatory changes, and geopolitical risks, including the conflicts in Ukraine and the Middle East, and the adoption or expansion of economic sanctions or trade restrictions.