AEP is offering data centers and other large customers this custom solution to support their growing energy needs while grid infrastructure enhancements are completed to accommodate demand.

AEP expects approximately $2.3 billion of net cash proceeds from the full physical settlement of the forward sale agreements and management anticipates using any future proceeds for general corporate purposes, which may include capital contributions to utility subsidiaries, acquisitions or repayment of debt.

Net proceeds will be used to help finance AEP's $54 billion capital plan for 2025-2029, announced in November 2024, driven by transmission and distribution infrastructure upgrades and new generation to support anticipated load growth.

The rule relies on carbon capture and sequestration and natural gas co-firing as means to reduce CO2 emissions from coal fired plants and carbon capture and sequestration or limited utilization to reduce CO2 emissions from new gas turbines. The rule also offers early retirement of coal plants in lieu of carbon capture and storage as an alternative means of compliance.

To the extent the net book value of these generation assets is not deemed recoverable, it could materially reduce future net income, cash flows and impact financial condition.

The costs of complying with new rules may also change based on potential state rules that impose additional more stringent standards, additional rulemaking activities in response to court decisions, actual performance of the pollution control technologies installed, changes in costs for new pollution controls, new generating technology developments, total MWs of capacity retired and replaced, including the type and amount of such replacement capacity, policy changes implemented by the Presidential administration and other factors.

The United States economy has been in an elevated inflationary environment. The Registrants have experienced certain supply chain constraints driven by several factors including international tensions and the ramifications of regional conflict, inflation, increased energy infrastructure construction to meet energy intensive customer demands, labor shortages in certain trades and shortages in the availability of certain raw materials.

Depending on the outcomes, these rate cases and proceedings can have a material impact on results of operations, cash flows and financial condition.

The Federal EPA's new GHG rules, and suite of other new rules issued simultaneously which are discussed below, are directed at the fossil-fuel fired electric utility industry and could force AEP to close additional coal-fired generation facilities earlier than their estimated useful life, if those rules remain in place.

AEP has received regulatory approvals from various state regulatory commissions to acquire approximately 2,303 MWs of owned renewable generation facilities, totaling approximately $5.5 billion. In addition, AEP has received regulatory approvals for 637 MWs of renewable PPAs.

As of March 31, 2025, OPCo has signed two contracts for electricity service from fuel cells. In February 2025, OPCo requested PUCO approval of those two contracts.

The increase in commercial sales was primarily due to new data processor loads and economic development. AEP is focused on attracting and retaining large commercial customers.

This is a general statement but highlights the importance of cost control for AEP.

This indicates AEP's strategy to maintain profitability despite increasing environmental compliance costs.

This highlights the complexity of environmental compliance and the need for efficient operational planning.

This indicates the importance of adapting to technological changes for AEP's future success.

This highlights the need to adapt to technological and societal changes for AEP's future success.

AEP is offering data centers and other large customers this custom solution to support their growing energy needs while grid infrastructure enhancements are completed to accommodate demand.

The capital plan is driven by transmission and distribution infrastructure upgrades and new generation to support anticipated load growth.

As of March 31, 2025, approximately $1.3 billion of equity is available for issuance under the ATM program.

Future dividends are at the discretion of the AEP Board and may vary depending upon AEP's profit levels, operating cash flow levels and capital requirements, as well as financial and other business conditions existing at the time.

The costs of complying with new rules may also change based on potential state rules that impose additional more stringent standards, additional rulemaking activities in response to court decisions, actual performance of the pollution control technologies installed, changes in costs for new pollution controls, new generating technology developments, total MWs of capacity retired and replaced, including the type and amount of such replacement capacity, policy changes implemented by the Presidential administration and other factors.

Management is engaged in the development of possible future requirements including the items discussed below.

This highlights the need to adapt to technological and societal changes for AEP's future success.

This highlights the sensitivity of AEP's business to external economic factors.

This highlights the regulatory risk inherent in the utility business.

This highlights the sensitivity of AEP's business to external financial factors.