What caused AEP's earnings to decline in 2024?

American Electric Power's (AEP) earnings decline in 2024 can be attributed to several factors: 1. **Strategic Shifts and Decreased Revenue**: AEP's year-to-date revenue decreased from $19.6 billion in 2022 to $19.0 billion in 2023. This decline, coupled with mixed earnings results, suggests that the company's strategic shifts, including grid investments and business de-risking, may have had an impact on short-term profitability. 2. **Challenges in Energy Market and Weather Conditions**: The energy market operates under conditions of volatility, and AEP's earnings are influenced by factors such as supply chain disruptions and mild weather, which can affect demand for electricity. These factors, combined with higher interest rates, likely contributed to the decline in earnings. 3. **Regulatory and Legal Challenges**: The company faced challenges related to the disallowance of recovery of certain deferred fuel costs in West Virginia and the probable disallowance of certain capitalized costs associated with the Turk Plant. These regulatory hurdles can impact earnings by limiting the recovery of costs that are typically passed through to customers. In summary, AEP's earnings decline in 2024 was likely a result of a combination of strategic shifts, challenges in the energy market, and regulatory issues.