American Electric Power
| Company type | Public company |
|---|---|
| Industry | Electric utility |
| Predecessor | Electric Company of America (founded 1899) |
| Founded | 1906 |
| Headquarters | Columbus , United States |
Area served | 11 U.S. states |
Key people | Bill Fehrman (Chairman and CEO) |
| Products | Electricity generation and transmission |
| Revenue | $19.72 billion (2024) |
| $4.304 billion (2024) | |
| $2.967 billion (2024) | |
| Total assets | $103.1 billion (2024) |
| Total equity | $26.94 billion (2024) |
Number of employees | 16,330 (2024) |
| Website | www |
American Electric Power Company, Inc. (AEP) ranks among the foremost electric utility providers in the United States, delivering electricity to more than five million customers across eleven states. As one of the nation’s top producers of electrical power, AEP possesses close to 38,000 megawatts of generation capacity and manages the largest electricity transmission network in the country, which extends roughly 39,000 miles. This system features an extensive array of 765 kV ultra-high voltage lines, exceeding the combined length of all other U.S. transmission networks.
AEP’s transmission assets fulfill around 10% of the electricity demand within the Eastern Interconnection—encompassing 38 states in the eastern and central U.S. plus eastern Canada—and approximately 11% of the load in the Electric Reliability Council of Texas (ERCOT) area. The company’s utility operations are organized into several subsidiaries: AEP Ohio, AEP Texas, Appalachian Power (serving Virginia, West Virginia, and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (operating in Arkansas, Louisiana, and East Texas). The corporate headquarters are situated in Columbus, Ohio.
Originally established in 1906 as American Gas and Electric Company and rebranded as American Electric Power in 1958, the company was a pioneer in deploying 345 kV transmission lines starting in 1953. In 2018, it was ranked 185th on the Fortune 500 list based on revenue.
For the fiscal year 2024, AEP reported revenues totaling $19.72 billion, with an operating income of $4.304 billion and net income amounting to $2.967 billion. The company’s total assets were valued at $103.1 billion while equity stood at $26.94 billion. Under the leadership of Chairman and CEO Bill Fehrman, AEP employs roughly 16,330 individuals.
Subsidiaries
AEP conducts its operations through seven principal geographic local operating companies:
AEP Ohio
AEP Ohio provides electrical service to approximately 1.5 million customers throughout central, southern, and northwestern regions of Ohio. In 2014, it unified its two previous entities—Ohio Power and Columbus Southern Power—under one consolidated operation. For regulatory matters, Ohio Power remains the designated legal operating entity.
AEP Texas
Formed through a combination of predecessor utilities acquired via Central and South West Corporation in 1997, AEP Texas comprises two companies: AEP Texas North Company (formerly West Texas Utilities), serving western Texas; and AEP Texas Central Company (formerly Central Power and Light), covering southern Texas.
Appalachian Power
Headquartered in Charleston, West Virginia, Appalachian Power caters to nearly one million customers across central and southern West Virginia, the Northern Panhandle region, southwest Virginia, as well as sections of northeast Tennessee including Kingsport. Key urban centers within its service area include Wheeling, Charleston, Huntington, Roanoke, and Kingsport.
Operations in Tennessee were once handled by Kingsport Power Company but have since been integrated into Appalachian Power’s operational framework. Wheeling Power—previously classified under Ohio Power—is now administered by Appalachian Power.
Indiana Michigan Power
Indiana Michigan Power serves northeastern and east-central Indiana—including cities such as Muncie and Fort Wayne—as well as parts of north-central Indiana and southwestern Michigan encompassing South Bend, St. Joseph, Benton Harbor, and Three Rivers. The Donald C. Cook Nuclear Generating Station is located within this service territory.
Kentucky Power
Kentucky Power provides electricity to much of Eastern Kentucky, including communities such as Pikeville, Hazard, and Ashland, where the company's main office is situated. Additionally, it operates a government affairs office in Frankfort.
On October 26, 2021, Liberty Utilities, a subsidiary of Algonquin Power & Utilities, reached an agreement to purchase AEP’s Kentucky operations for $2.8 billion. This deal was anticipated to finalize in the second quarter of 2022, subject to regulatory consent. However, on April 17, 2023, the transaction was called off due to regulatory obstacles and opposition from the Kentucky Attorney General and state legislators. Although Kentucky’s Public Service Commission approved the sale with certain conditions in May 2022, the U.S. Federal Energy Regulatory Commission withheld approval over concerns about negative impacts on consumers’ rates. Consequently, both AEP and Liberty Utilities withdrew their application.
Public Service Company of Oklahoma (PSO)
Founded in 1913, PSO is among the four CSW operating companies acquired by AEP. Based in Tulsa, PSO serves roughly 540,000 customers throughout eastern and southwestern Oklahoma. Its service territory spans 30,000 square miles and delivers 4,269 megawatts of generating capacity to 232 municipalities.
In 2014, PSO supported legislation endorsed by Oklahoma Governor Mary Fallin that introduced a tax on rooftop solar system owners within the state. The initiative was spearheaded by Rep. Mike Turner (Oklahoma politician), reflecting PSO’s strategic approach toward managing distributed energy resources across its network.
Southwestern Electric Power Company
The Southwestern Electric Power Company, commonly known as SWEPCO, operates in western Arkansas, northwestern Louisiana, and northeastern Texas. It is one of AEP's four CSW Operating Companies.
During 2013 and 2014, SWEPCO attempted unsuccessfully to repeal net metering regulations at the Louisiana Public Service Commission (LPSC). The company also backed anti-solar candidate Eric Skrmetta, who faced criticism for receiving two-thirds of his campaign contributions from regulated entities.
In 2015, SWEPCO aimed to obtain regulatory approval to recover costs associated with the John W. Turk Jr. Coal Plant—the most costly project ever undertaken in Arkansas—by passing expenses onto customers amid ongoing disputes. Additionally, SWEPCO’s Dolet Hills Power Station in Louisiana was slated for closure in 2021 due to environmental concerns.
Other subsidiaries
AEP acquired a significant portion of Cheshire, Ohio—home to the Gavin Power Plant—due to environmental pollution issues. In 2004, the company announced plans to develop integrated gasification combined cycle (IGCC) coal plants designed to reduce emissions while enhancing capacity.
In August 2008, AEP entered into a joint venture with Duke Energy to expand electric transmission infrastructure. Furthermore, AEP holds the largest stake in Ohio Valley Electric Corporation (OVEC), an affiliate company in which it owns less than half of the shares.
Nuclear
AEP owns and operates the Donald C. Cook nuclear power facility, which accounts for approximately 6% of its total electricity generation portfolio.
Hybrid technology
As part of its commitment to sustainability, AEP is adding 18 more International DuraStar hybrid diesel trucks to its fleet and partnering with Ford on a Vehicle-To-Power grid communication system that enables hybrid vehicles to optimize charging while on the move.
Solar and wind energy
In 2009, AEP entered into a power purchase agreement with Wyandot Solar LLC for one of the largest solar installations in the eastern United States, situated in Upper Sandusky, Ohio. The company also manages the Desert Sky and Trent Wind Farms.
That same year, AEP collaborated with other energy companies to explore transmission solutions aimed at delivering wind-generated power from the Upper Midwest to consumers in the Eastern region.
In 2017, Invenergy and GE unveiled the $4.5 billion, 2,000 MW Wind Catcher initiative in Oklahoma, which was poised to rank among the largest wind farms globally. Following construction, AEP subsidiaries PSO and SWEPCO sought regulatory clearance to acquire the facility. Nevertheless, due to substantial opposition, the project was ultimately discontinued in 2018.
Early in 2020, PSO obtained authorization to hold a 45.5% stake (675 MW) in the 1,485 MW North Central Energy Facilities (NCEF) wind project, with SWEPCO owning the remaining 810 MW. This project covers several counties across Oklahoma. Regulatory bodies in Arkansas and Louisiana granted approval, though Texas rejected its allocated portion of 309 MW. Despite this setback, PSO and SWEPCO moved forward with their respective allocations: Oklahoma (675 MW), Louisiana (464 MW), and Arkansas (268 MW), aiming for completion between 2020 and 2021.
Unlike Wind Catcher, NCEF utilizes existing transmission systems and allows for capacity adjustments tailored to each state’s needs. The 199 MW Sundance facility was finalized in April 2021, while the 287 MW Maverick and 999 MW Traverse projects were slated for commissioning in late 2021 and early 2022 respectively.
PATH Proposal
In 2007, AEP joined forces with Allegheny Energy to propose the Potomac-Appalachian Transmission Highline (PATH), a 290-mile, 765-kilovolt transmission corridor spanning West Virginia, Virginia, and Maryland. Initially estimated at $1.8 billion and later updated to $2.1 billion in 2011, the project aimed to cut carbon dioxide emissions by approximately 380,000 short tons annually. It also sought to facilitate renewable energy transmission—including wind, solar, and hydroelectric power—and was projected to generate around 5,700 jobs with $420 million in yearly wages. However, these projected advantages were contested amid considerable legal opposition. On August 24, 2012, PJM Interconnection removed PATH from its expansion agenda due to slower-than-anticipated growth in electricity demand influenced by economic conditions.
History
Originally incorporated as the American Gas and Electric Company in 1906—following its predecessor Electric Company of America founded in 1899—the entity was renamed American Electric Power in 1958. It was a pioneer in steam reheating technology at Ohio’s Philo Power Plant in 1923. After enactment of the Public Utility Holding Company Act of 1935, AEP divested assets such as Atlantic City Electric (now part of Exelon) and Scranton Electric (later integrated into PPL) but maintained control over its Central System extending from Michigan through Virginia. During the 1980s, the company shifted its headquarters from New York City to Columbus, Ohio. On August 31, 2004, AEP finalized a $10 billion acquisition of Central and South West Corporation, substantially broadening its market footprint and strengthening its focus on regulated electric utility operations.
Acquisitions
- 1922: Indiana and Michigan Electric
- 1924: American Electric Power Company, a holding entity based in Philadelphia
- 1925: Appalachian Power Company
- 1948: Indiana Service Corporation located in Fort Wayne
- 1980: Columbus and Southern Ohio Electric Company
- 1997: Central and South West Corporation (finalized in 2000)
Ownership
By 2017, the majority of American Electric Power's equity was held by institutional investors and prominent single-family offices, such as Vanguard Group, BlackRock, and State Street Corporation.
Environmental record
According to the Political Economy Research Institute, American Electric Power ranked 55th among U.S. companies for emissions of airborne pollutants, releasing roughly 2.24 billion pounds of hazardous air contaminants in 2018. The primary pollutants emitted include compounds of sulfuric and hydrochloric acids, chromium, manganese, and nickel. AEP’s power generation facilities account for nearly 70% of sulfur dioxide and about 30% of nitrogen oxide emissions annually—both associated with respiratory health issues and acid rain, which adversely affects ecosystems and infrastructure. The Environmental Protection Agency has listed AEP as a potentially responsible party at the Green River Disposal Inc. Superfund site.
In February 2018, AEP unveiled a strategic plan aiming to cut carbon emissions by 80% by 2050 through increased deployment of renewable energy sources, expanded natural gas utilization, and enhanced energy efficiency measures.
In August 2018, AEP initiated a $10 million program in Ohio to promote electric vehicle infrastructure by installing as many as 375 EV charging stations to support the growth of electric vehicle usage.
Justice Department lawsuit
On November 3, 1999, the U.S. Department of Justice brought a lawsuit against AEP and six other entities for violations of the Clean Air Act. In October 2007, AEP consented to invest $4.6 billion in pollution control technologies, pay a $15 million civil penalty, and dedicate $60 million toward environmental remediation projects. This agreement addresses emission limits at sixteen plants across five states: West Virginia, Kentucky, Virginia, Ohio, and Indiana. Once implemented, AEP is expected to reduce annual air pollutant releases by approximately 813,000 short tons.
Attempt to Halt Solar Energy
AEP has encountered criticism for its opposition to rooftop solar programs across multiple states within its service area—including Louisiana, Arkansas, Oklahoma, West Virginia, Indiana, Kentucky, and Ohio. The company has actively worked to restrict the expansion of distributed solar power in these regions, affecting the development of renewable energy markets.
Carbon footprint
For the year ending December 31, 2020, AEP reported total CO2e emissions (both direct and indirect) amounting to 49,681 kilotonnes—a reduction of 37.3% compared to the previous year. The company has set a goal to reach net zero greenhouse gas emissions by 2045 as part of its sustainability objectives.
| December 2017 | December 2018 | December 2019 | December 2020 |
|---|---|---|---|
| 91,718 | 91,101 | 79,290 | 49,681 |
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