AEP Files 10-Q: Financials and Operations Update

TL;DR

AEP's Q2 10-Q is in. Check financials for the utility giant.

AI Summary

American Electric Power Co. Inc. (AEP) filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and operational status. AEP, headquartered in Columbus, Ohio, operates as a major electric utility, serving millions of customers across its various subsidiaries, including Indiana Michigan Power and AEP Texas.

Why It Matters

This filing provides investors and analysts with a crucial update on American Electric Power's financial health and operational standing for the second quarter of 2024.

Risk Assessment

Risk Level: low — A 10-Q filing is a routine quarterly report and does not inherently indicate new or elevated risks.

Key Numbers

• 10-Q — Form Type (Quarterly report filed with the SEC)

Key Players & Entities

• AMERICAN ELECTRIC POWER CO INC (company) — Filer
• INDIANA MICHIGAN POWER CO (company) — Subsidiary
• AEP Texas Inc. (company) — Subsidiary
• 20240630 (date) — Reporting Period End Date
• 20240730 (date) — Filing Date

FAQ

Key Financial Figures

• $6.50 — ectric Power Company Inc. Common Stock, $6.50 par value AEP The NASDAQ Stock Market L
• $0.01 — ($6.50 par value) AEP Texas Inc. 100 ($0.01 par value) AEP Transmission Company, L
• $15 — Service Company of Oklahoma 9,013,000 ($15 par value) Southwestern Electric Power
• $18 — hwestern Electric Power Company 3,680 ($18 par value) (a) 100% interest is held
• $521 million — AEP Common Shareholders decreased from $521 million in 2023 to $340 million in 2024 primari
• $340 million — decreased from $521 million in 2023 to $340 million in 2024 primarily due to: A revenue r
• $918 million — AEP Common Shareholders increased from $918 million in 2023 to $1,343 million in 2024 prima
• $1,343 million — increased from $918 million in 2023 to $1,343 million in 2024 primarily due to: A favorable

Filing Documents

• aep-20240630.htm (10-Q) — 10210KB
• ex10aaep20242q.htm (EX-10) — 164KB
• ex31aaep20242q.htm (EX-31.A) — 10KB
• ex31aaeptco20242q.htm (EX-31.A) — 10KB
• ex31aaeptexas20242q.htm (EX-31.A) — 10KB
• ex31aapco20242q.htm (EX-31.A) — 10KB
• ex31aim20242q.htm (EX-31.A) — 10KB
• ex31aopco20242q.htm (EX-31.A) — 10KB
• ex31apso20242q.htm (EX-31.A) — 10KB
• ex31aswepco20242q.htm (EX-31.A) — 10KB
• ex31baep20242q.htm (EX-31.B) — 10KB
• ex31baeptco20242q.htm (EX-31.B) — 10KB
• ex31baeptexas20242q.htm (EX-31.B) — 10KB
• ex31bapco20242q.htm (EX-31.B) — 10KB
• ex31bim20242q.htm (EX-31.B) — 10KB
• ex31bopco20242q.htm (EX-31.B) — 10KB
• ex31bpso20242q.htm (EX-31.B) — 10KB
• ex31bswepco20242q.htm (EX-31.B) — 10KB
• ex32aaep20242q.htm (EX-32.A) — 4KB
• ex32aaeptco20242q.htm (EX-32.A) — 4KB
• ex32aaeptexas20242q.htm (EX-32.A) — 4KB
• ex32aapco20242q.htm (EX-32.A) — 4KB
• ex32aim20242q.htm (EX-32.A) — 4KB
• ex32aopco20242q.htm (EX-32.A) — 4KB
• ex32apso20242q.htm (EX-32.A) — 4KB
• ex32aswepco20242q.htm (EX-32.A) — 4KB
• ex32baep20242q.htm (EX-32.B) — 4KB
• ex32baeptco20242q.htm (EX-32.B) — 4KB
• ex32baeptexas20242q.htm (EX-32.B) — 4KB
• ex32bapco20242q.htm (EX-32.B) — 4KB
• ex32bim20242q.htm (EX-32.B) — 4KB
• ex32bopco20242q.htm (EX-32.B) — 4KB
• ex32bpso20242q.htm (EX-32.B) — 4KB
• ex32bswepco20242q.htm (EX-32.B) — 4KB
• 0000004904-24-000081.txt ( ) — 43691KB
• aep-20240630.xsd (EX-101.SCH) — 205KB
• aep-20240630_cal.xml (EX-101.CAL) — 105KB
• aep-20240630_def.xml (EX-101.DEF) — 1226KB
• aep-20240630_lab.xml (EX-101.LAB) — 1695KB
• aep-20240630_pre.xml (EX-101.PRE) — 1337KB
• aep-20240630_htm.xml (XML) — 11128KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Items 1, 2, 3 and 4 - Financial Statements, Management's Discussion and Analysis of Financial Condition and Results of Operations, Quantitative and Qualitative Disclosures About Market Risk and Controls and Procedures: American Electric Power Company, Inc. and Subsidiary Companies:

Management's Discussion and Analysis of Financial Condition and Results of Operations 1

Management's Discussion and Analysis of Financial Condition and Results of Operations 1 Condensed Consolidated Financial Statements 41 AEP Texas Inc. and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 47 Condensed Consolidated Financial Statements 50 AEP Transmission Company, LLC and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 56 Condensed Consolidated Financial Statements 58 Appalachian Power Company and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 63 Condensed Consolidated Financial Statements 66 Indiana Michigan Power Company and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 72 Condensed Consolidated Financial Statements 75 Ohio Power Company and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 81 Condensed Consolidated Financial Statements 85 Public Service Company of Oklahoma: Management's Narrative Discussion and Analysis of Results of Operations 90 Condensed Financial Statements 93 Southwestern Electric Power Company Consolidated: Management's Narrative Discussion and Analysis of Results of Operations 99 Condensed Consolidated Financial Statements 102 Index of Condensed Notes to Condensed Financial Statements of Registrants 108

Controls and Procedures 188

Controls and Procedures 188

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings 189

Item 1. Legal Proceedings 189

Risk Factors 189

Item 1A. Risk Factors 189

Unregistered Sales of Equity Securities and Use of Proceeds 189

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 189

Defaults Upon Senior Securities 189

Item 3. Defaults Upon Senior Securities 189

Mine Safety Disclosures 189

Item 4. Mine Safety Disclosures 189

Other Information 189

Item 5. Other Information 189

Exhibits 190

Item 6. Exhibits 190 SIGNATURE 191 This combined Form 10-Q is separately filed by American Electric Power Company, Inc., AEP Texas Inc., AEP Transmission Company, LLC, Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Except for American Electric Power Company, Inc., each registrant makes no representation as to information relating to the other registrants. GLOSSARY OF TERMS When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below. Term Meaning AEGCo AEP Generating Company, an AEP electric utility subsidiary. AEP American Electric Power Company, Inc., an investor-owned electric public utility holding company which includes American Electric Power Company, Inc. (Parent) and majority owned consolidated subsidiaries and consolidated affiliates. AEP Credit AEP Credit, Inc., a consolidated VIE of AEP which securitizes accounts receivable and accrued utility revenues for affiliated electric utility companies. AEP Energy Supply LLC A nonregulated holding company for AEP's competitive generation, wholesale and retail businesses, and a wholly-owned subsidiary of AEP. AEP Renewables A division of AEP Energy Supply LLC that develops and/or acquires large scale renewable projects that are backed with long-term contracts with creditworthy counterparties. AEP Texas AEP Texas Inc., an AEP electric utility subsidiary. AEP Transmission Holdco AEP Transmission Holding Company, LLC, a wholly-owned subsidiary of AEP. AEPEP AEP Energy Partners, Inc., a subsidiary of AEP dedicated to wholesale marketing and trading, hedging activities, asset management and commercial and industrial sales in deregulated markets. AEPSC American Electric Power Service Corporation, an AEP service subsidiary

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXECUTIVE OVERVIEW AEP Consolidated Earnings Attributable to Common Shareholders Second Quarter of 2024 Compared to Second Quarter of 2023 Earnings Attributable to AEP Common Shareholders decreased from $521 million in 2023 to $340 million in 2024 primarily due to: A revenue refund provision related to SWEPCo's 2012 Texas Base Rate Case and the Turk Plant. An increase in operating expenses due to the Federal EPA's revised CCR rule finalized in May 2024. A severance accrual resulting from the voluntary severance program announced in April 2024. These decreases were partially offset by: Favorable rate proceedings in AEP's various jurisdictions. An increase in sales volumes driven by favorable weather and increased load in the commercial customer class. Investment in transmission assets, which resulted in higher revenues and income. Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 Earnings Attributable to AEP Common Shareholders increased from $918 million in 2023 to $1,343 million in 2024 primarily due to: A favorable impact from the receipt of PLRs in 2024 related to the treatment of NOLCs in retail rate making. See "NOLCs in Retail Jurisdictions - IRS PLRs" section below for additional information. Favorable rate proceedings in AEP's various jurisdictions. An increase in sales volumes driven by favorable weather and increased load in the commercial customer class. Investment in transmission assets, which resulted in higher revenues and income. A loss on the sale of the competitive contracted renewables portfolio in 2023. These increases were partially offset by: A revenue refund provision related to SWEPCo's 2012 Texas Base Rate Case and the Turk Plant. An increase in operating expenses due to the Federal EPA's revised CCR rule finalized in May 2024. A severance accrual resulting from the voluntary severance program announ