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- **7-9% Growth Rate Announced**: AEP targets 7-9% annual EPS growth from 2026-2030, driven by a $72B capital plan and 28 gigawatts of contracted load.
- **Transmission Dominance**: Leads U.S. with 90% of 765 kV lines, securing major projects in ERCOT and PJM to serve hyperscalers.
- **Affordability Commitment**: Residential rates to rise 3.5% annually (below 4% inflation), with 90% of capital costs recovered through reduced regulatory lag.
- **Regulatory Progress**: Texas ROE at 9%, PJM at 8.5%, and West Virginia under active reconsideration to achieve 9.5% ROE by 2030.
- **Hyperscaler Growth**: 80% of load growth from Google, AWS, Meta, with 2 gigawatts of data center capacity added in Q3 alone.

**【CEO Summary Section】**
- Reported Q3 2025 operating earnings of $1.80 per share, reaffirming full-year guidance of $5.75-$5.95 EPS and guiding to the upper half of the range.
- Announced a new long-term operating earnings growth rate of 7%-9% annually from 2026-2030, with a 9% CAGR over the 5-year period.
- Launched a $72 billion 5-year capital plan, driving a 10% rate base CAGR, with 90% of investments recovered through reduced regulatory lag mechanisms.
- Highlighted 28 gigawatts of contracted load growth (80% from hyperscalers, 20% from industrials), supported by 190 gigawatts of customer interest.
- Emphasized transmission leadership with 2,100 miles of 765 kV lines (90% of U.S. total), securing major projects in ERCOT and PJM.
- Committed to affordability, forecasting residential rate increases of 3.5% annually (below 4% historical inflation rate).

**【CFO Financial Commentary】**
- Year-to-date operating earnings of $4.78 per share, up 9% YoY, driven by load growth, transmission execution, and rate changes.
- 2026 EPS guidance of $6.15-$6.45, reflecting an 8% increase from the 2025 midpoint.
- Capital plan breakdown: 67% for transmission/generation, 33% for distribution/grid modernization.
- Financing strategy: $5.9 billion growth equity (80% issued in the back half of the plan), targeting FFO/debt ratio of 14%-15%.
- No plans for asset sales, focusing on disciplined cost management and regulatory progress.

**【Q&A Highlights】**
- **Growth Rate Drivers**: Mid-plan capital deployment ($17B in 2027-2028) and regulatory reforms (Ohio forward-looking test year, Texas tracker mechanism).
- **Load Contracts**: 28 gigawatts under LOAs/ESAs, with 190 gigawatts in pipeline; 80% of load growth tied to data centers.
- **Transmission Leadership**: 765 kV network attracts hyperscalers, with 2 gigawatts of data center load coming online in Q3 alone.
- **ROE Improvement**: Targeting 9.5% by 2030 through constructive regulatory outcomes (Texas 9%, PJM 8.5%), with West Virginia under active reconsideration.
- **Dividend Policy**: 50%-60% payout ratio, with Board-approved 2% dividend increase and focus on long-term EPS growth.

American Electric Power Company, Inc. (AEP) Q3 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

Cost of Revenue

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Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Net Income

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AEP

AEP fundamentals

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