... Power Company, Inc. (AEP) is a utility holding company with subsidiaries operating regulated utility businesses in 11 states and a growing investment in regulated transmission networks. Investment in low-risk utility businesses, service territory diversity, regulatory diversity and the strategic focus on rate base growth are embedded in Fitch Ratings' assigned Issuer Default Rating (IDR). Improving Business Risk Profile: Future planned investments in Federal Energy Regulatory Commission (FERC)-regulated transmission networks will further diversify and improve AEP's business risk profile with over 90% of consolidated earnings and cash flows derived from regulated activities. Fitch believes AEP's merchant generating business will not be a strategic focus and will be conservatively managed. Challenging Merchant Business Environment: The cost to comply with the stricter environmental regulations, low electricity demand and weak pricing environment...
