Columbus – October 29, 2026 -- American Electric Power (Nasdaq: AEP) expanded its five-year capital plan to $100 billion through 2031 and said 2026 operating earnings will land at or above the high end of its $6.25 to $6.55 per share guidance range.
Third-quarter operating earnings rose to $1,216 million, or $2.23 per share, from $963 million, or $1.80 per share, a year earlier. GAAP earnings were $1,187 million, or $2.18 per share, against $972 million, or $1.82 per share, in the third quarter of 2025.
AEP targets 9% to 11% annual earnings growth through 2031
The utility introduced annual operating EPS growth of 9% to 11% for 2027 through 2031. It also set a greater than 10% compound annual growth rate through 2031, measured from the original 2026 guidance midpoint of $6.30 per share.
Guidance ranges are $6.75 to $7.05 per share for 2027 and $7.40 to $7.70 per share for 2028. On a GAAP basis, the 2026 range would be $6.11 to $6.41 per share, reflecting items recorded through the third quarter.
Rate base set to reach $162 billion by 2031 on 13%+ CAGR
The capital plan supports a rate base compound annual growth rate above 13%, taking rate base to $162 billion by 2031. AEP plans roughly $37 billion in transmission, which is expected to nearly double transmission rate base to approach $70 billion by 2031. It also plans $36 billion for generation, backed by long-term customer contracts, and about $22 billion for distribution reliability and resiliency.
AEP signs 15 GW of new load in Q3, lifting contracted load to 84 GW
The company signed 15 gigawatts of new load commitments in the third quarter. Incremental contracted load is now expected to reach 84 GW by 2031. AEP counts a project only if it is backed by a fully executed electric service agreement or letter of agreement.
Large-load contracts to offset up to $21 billion in residential fixed costs
Fully executed take-or-pay electric service agreements in AEP's vertically integrated states are now expected to generate up to $21 billion in fixed cost offsets for existing residential customers over the life of the contracts, up from $16 billion. AEP cited a second proposed rate reduction in Indiana as an example of the mechanism.
Chairman, President and CEO Bill Fehrman said AEP is "entering our next phase of growth from a position of strength." He added that new large-load customers should bear the incremental system costs they create and fund the investments needed to serve them.