Columbus, Ohio – October 12, 2026 -- American Electric Power (Nasdaq: AEP) raised its full-year 2026 operating earnings guidance to $6.25 to $6.55 per share from $6.15 to $6.45, after signing an incremental 6 GW of load agreements in the second quarter and lifting contracted load growth through 2030 to 69 GW.
Second-quarter GAAP earnings fell to $713 million, or $1.31 per share, from $1,226 million, or $2.29 per share, a year earlier. Operating earnings were $742 million, or $1.36 per share, versus $766 million, or $1.43 per share, in the second quarter of 2025. CEO Bill Fehrman attributed the year-over-year decline to the 2025 transmission minority interest sale and the timing of tax-related items.
The company reaffirmed annual operating earnings growth of 7% to 9% through 2030, with an expected compound annual growth rate above 9% off the 2025 guidance midpoint. The outlook rests on a five-year, $78 billion capital plan. AEP also cited line of sight to more than $10 billion in incremental capital investment, including a fuel cell project in Wyoming, the Piketon transmission opportunity in Ohio and added generation in its footprint.
On a GAAP basis, the 2026 guidance equates to $6.16 to $6.46 per share, reflecting items recorded through the second quarter.
AEP identifies up to $16 billion in cost offsets backed by take-or-pay contracts
The offsets are for residential customers of its vertically integrated utilities and are supported by fully executed take-or-pay electric service agreements. AEP says new large-load customers spread fixed costs across a broader base.
Virginia approved a large load tariff in the second quarter, bringing AEP's states with approved tariffs to five. Three more state filings are pending.
AEP Texas secures $3.3 billion DOE loan, lifting federal loans to about $5 billion
The Department of Energy loan of up to $3.3 billion will support nearly 100 transmission projects and is expected to save customers $685 million in interest over its life. Across its portfolio, AEP has secured about $5 billion in DOE loans, supporting nearly $1 billion in projected interest savings. Adding almost $400 million in awarded DOE grants, the company estimates nearly $1.4 billion in customer benefits.
Regulators approve rate cuts and 1.3 GW of new Oklahoma generation
Second-quarter regulatory outcomes included a distribution base rate decrease in Ohio and approval to add 1.3 GW of generation for Oklahoma customers. AEP also completed a $1.4 billion securitization that let Appalachian Power file its lowest base rate increase request in Virginia in nearly 30 years.
Contracted load reaches 69 GW, led by Texas data center and industrial demand
The incremental 6 GW signed in the quarter came primarily in Texas. Customers include hyperscalers, data centers and industrials.
AEP locks in 13 GW of gas turbine capacity and eyes 10 GW more
The company secured three additional GW of gas-fired turbine capacity in the second quarter, bringing the total to approximately 13 GW for potential deployment through 2031. AEP is evaluating up to 10 GW of additional turbine capacity through 2035.