AEP Files 10-Q: Financials and Operations Update

TL;DR

AEP's Q3 2024 10-Q is in. Check financials for American Electric Power Co. Inc.

AI Summary

American Electric Power Co. Inc. (AEP) filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational status. AEP, headquartered in Columbus, Ohio, operates through various subsidiaries including Indiana Michigan Power Co. and AEP Texas Inc.

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 third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• AMERICAN ELECTRIC POWER CO INC (company) — Filer
• INDIANA MICHIGAN POWER CO (company) — Subsidiary
• AEP Texas Inc. (company) — Subsidiary
• 20240930 (date) — Reporting Period End Date
• 20241106 (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
• $954 million — ed consistent, slightly increasing from $954 million in 2023 to $960 million in 2024. Nine
• $960 million — increasing from $954 million in 2023 to $960 million in 2024. Nine Months Ended September
• $1,872 million — AEP Common Shareholders increased from $1,872 million in 2023 to $2,303 million in 2024 prima
• $2,303 million — ncreased from $1,872 million in 2023 to $2,303 million in 2024 primarily due to: A favorable
• $674 million — t and former plant sites and recorded a $674 million increase in ARO. See "CCR Rule" section
• $122 million — ffordable for customers. AEP recorded a $122 million pretax expense in the second quarter of
• $111 million — severance program. The Registrants paid $111 million of the severance benefits in the third

Filing Documents

• aep-20240930.htm (10-Q) — 10516KB
• ex10aaep20243q.htm (EX-10) — 60KB
• ex31aaep20243q.htm (EX-31.A) — 10KB
• ex31aaeptco20243q.htm (EX-31.A) — 10KB
• ex31aaeptexas20243q.htm (EX-31.A) — 10KB
• ex31aapco20243q.htm (EX-31.A) — 10KB
• ex31aim20243q.htm (EX-31.A) — 10KB
• ex31aopco20243q.htm (EX-31.A) — 10KB
• ex31apso20243q.htm (EX-31.A) — 10KB
• ex31aswepco20243q.htm (EX-31.A) — 10KB
• ex31baep20243q.htm (EX-31.B) — 10KB
• ex31baeptco20243q.htm (EX-31.B) — 10KB
• ex31baeptexas20243q.htm (EX-31.B) — 10KB
• ex31bapco20243q.htm (EX-31.B) — 10KB
• ex31bim20243q.htm (EX-31.B) — 10KB
• ex31bopco20243q.htm (EX-31.B) — 10KB
• ex31bpso20243q.htm (EX-31.B) — 10KB
• ex31bswepco20243q.htm (EX-31.B) — 10KB
• ex32aaep20243q.htm (EX-32.A) — 4KB
• ex32aaeptco20243q.htm (EX-32.A) — 4KB
• ex32aaeptexas20243q.htm (EX-32.A) — 4KB
• ex32aapco20243q.htm (EX-32.A) — 4KB
• ex32aim20243q.htm (EX-32.A) — 4KB
• ex32aopco20243q.htm (EX-32.A) — 4KB
• ex32apso20243q.htm (EX-32.A) — 4KB
• ex32aswepco20243q.htm (EX-32.A) — 4KB
• ex32baep20243q.htm (EX-32.B) — 4KB
• ex32baeptco20243q.htm (EX-32.B) — 4KB
• ex32baeptexas20243q.htm (EX-32.B) — 4KB
• ex32bapco20243q.htm (EX-32.B) — 4KB
• ex32bim20243q.htm (EX-32.B) — 4KB
• ex32bopco20243q.htm (EX-32.B) — 4KB
• ex32bpso20243q.htm (EX-32.B) — 4KB
• ex32bswepco20243q.htm (EX-32.B) — 4KB
• aep-20240930_g1.jpg (GRAPHIC) — 109KB
• 0000004904-24-000100.txt ( ) — 45185KB
• aep-20240930.xsd (EX-101.SCH) — 210KB
• aep-20240930_cal.xml (EX-101.CAL) — 105KB
• aep-20240930_def.xml (EX-101.DEF) — 1239KB
• aep-20240930_lab.xml (EX-101.LAB) — 1746KB
• aep-20240930_pre.xml (EX-101.PRE) — 1358KB
• aep-20240930_htm.xml (XML) — 11396KB

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 42 AEP Texas Inc. and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 48 Condensed Consolidated Financial Statements 51 AEP Transmission Company, LLC and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 57 Condensed Consolidated Financial Statements 59 Appalachian Power Company and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 64 Condensed Consolidated Financial Statements 67 Indiana Michigan Power Company and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 73 Condensed Consolidated Financial Statements 76 Ohio Power Company and Subsidiaries: Management's Narrative Discussion and Analysis of Results of Operations 82 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 190

Controls and Procedures 190

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings 191

Item 1. Legal Proceedings 191

Risk Factors 191

Item 1A. Risk Factors 191

Unregistered Sales of Equity Securities and Use of Proceeds 191

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 191

Defaults Upon Senior Securities 191

Item 3. Defaults Upon Senior Securities 191

Mine Safety Disclosures 191

Item 4. Mine Safety Disclosures 191

Other Information 191

Item 5. Other Information 191

Exhibits 192

Item 6. Exhibits 192 SIGNATURE 193 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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES

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 Third Quarter of 2024 Compared to Third Quarter of 2023 Earnings Attributable to AEP Common Shareholders remained consistent, slightly increasing from $954 million in 2023 to $960 million in 2024. Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 Earnings Attributable to AEP Common Shareholders increased from $1,872 million in 2023 to $2,303 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 announced in April 2024. See "Results of Operations" section for additional information by operating segment. 1 Customer Demand AEP uses sales volumes by customer class as a way to measure significant drivers of customer demand. The percentage change in sales volumes by customer class are shown in the table below: (a) Percentage change for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. (b) Percentage change for the nine months ended September 30, 2024 as compared to the nine months ended September