AEP will invest $15 billion over next three years
Written By: Stratton Report
April 26, 2016
On April 26, American Electric Power announced that it plans to invest $5 billion every year for the next three years primarily in its core operations.
These inclue its transmission business – which has grown to contribute 39 cents per share to earnings in 2015, an increase of 26 percent from 2014. AEP’s Transmission Holding Co. grew by $1 billion in 2015 to a total of $3.9 billion in net plant, a 33% increase.
Per the company, AEP continues to diversify its generation fleet following the retirement of 5,600 megawatts of coal-fueled generation in 2015 and 1,000 megawatts in 2016. The company is refueling 752 megawatts of generation with natural gas and plans to nearly triple its renewable energy portfolio in the next two decades. In 2015, AEP completed its first solar power plant near Marion, Indiana, and the company is building four more solar plants in Indiana, Michigan and Ohio.
AEP reports that it has cut its carbon dioxide emissions 39 percent from 2000 levels and will continue to reduce carbon dioxide emissions from its power plants as the company transitions to more renewables and natural gas.
Nicholas K. Akins, AEP’s chairman, president and chief executive officer observed:
“The investments we’re making to build a smarter grid, improve service to our customers and create a balanced energy mix – coupled with our focus on controlling costs and improving the efficiency of our operations – will allow AEP to continue achieving solid financial results. Over the past five years, AEP has provided a total shareholder return of 101 percent, exceeding the 61 percent total return for the S&P 500 Electric Utilities Index.”