American Electric Power Co. Inc.

This report does not constitute a rating action. Overview Key strengths Key risks Low-risk, rate-regulated utility operations. Robust capital spending. Significant scale and size. Wildfire risk exposure. Effective management of regulatory risk. Operating risks associated with nuclear and coal plants. Earlier this year, American Electric Power Co. Inc. (AEP) increased its five-year capital plan (2026-2030) to $72 billion from its prior five-year plan (2025-2029) of $54 billion to accommodate 28 gigawatts (GW) of incremental load growth through 2030. Of this new load, data centers account for 88%, while large industrials account for the remaining 12%. We expect the company?s financial measures will benefit from rising electricity sales, significant capital spending could pressure financial measures if not funded in a credit

...Rising capital spending could pressure credit quality if not funded in a credit-supportive manner. Earlier this year, American Electric Power Co. Inc. (AEP) increased its five-year capital plan (2026-2030) to $72 billion from its prior five-year plan (2025-2029) of $54 billion to accommodate 28 gigawatts (GW) of incremental load growth through 2030. Of this new load, data centers account for 88%, while large industrials account for the remaining 12%. We expect the company's financial measures will benefit from rising electricity sales, significant capital spending could pressure financial measures if not funded in a credit supportive. Our expectation that AEP will fund its rising cash flow deficits in a credit-supportive manner to maintain sound credit quality underlines our stable outlook. AEP currently has about 200 basis...

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