By American Electric Power (AEP) experienced a decrease in second-quarter earnings, primarily due to mild weather conditions and financial strain resulting from inflation. The utility company, based in Columbus, Ohio, reported a drop in earnings to $521.2 million, or $1.01 per share, compared to $524.5 million, or $1.02 per share, during the same period last year. However, after excluding specific items, AEP recorded second-quarter earnings of $1.13 per share.
Unfortunately, second-quarter revenue also saw a slight decline of 0.2%, amounting to $4.4 billion.
According to AEP’s President and Chief Executive, Julie Sloat, the decline in residential and industrial load was expected due to inflation and rising interest rates impacting their customers. However, the company has observed a significant increase in commercial load, which has grown approximately 8% year over year in the past two quarters.
AEP serves customers in multiple states across the Midwest and South, including Ohio, Indiana, Kentucky, and Texas. Additionally, it operates the largest transmission system in the nation in terms of miles of lines.
Despite these challenges, AEP remains confident in its forecast for 2023 operating earnings, expecting a range between $5.19 and $5.39 per share.
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