American Electric Power, Columbus, Ohio, is increasing capital investment in its regulated operations over the next five years to provide more advanced, resilient and cleaner energy solutions for its customers. The company plans to invest $33 billion in capital from 2019 through 2023, with 75% of that investment focused on its transmission and distribution operations to enhance service for customers. The company has $2.7 billion in new renewable generation in its capital plan during this same period, including approximately $2.2 billion for competitive, contracted renewable projects. AEP intends to work with regulators to identify additional opportunities to add renewable generation in its regulated jurisdictions.
“Our long-term strategy is built on investments that will benefit our customers and position us for ongoing success and steady earnings growth as our industry transforms. AEP’s capital investments over the next five years will be focused on advanced infrastructure, innovative technologies and cleaner generation resources,” said Nicholas K. Akins, AEP chairman, president and chief executive officer.
“Our customers will benefit from a more reliable, resilient and smarter energy system as we rebuild and enhance aging infrastructure and add new, more efficient technologies to our transmission and distribution systems. We plan to invest approximately $16.6 billion in our transmission businesses and another $8.3 billion in our distribution businesses over the next five years," Akins said. “The transition of our generation mix to cleaner resources will continue. Earlier this year, we announced our plan to cut our carbon dioxide emissions 60 percent from 2000 levels by 2030. To help achieve this goal, we plan to add more than 8,300 megawatts of wind and solar generation and more than 2,600 megawatts of natural gas generation to our regulated generation fleet by 2030."
AEP has a strong balance sheet and a stable credit outlook. AEP expects to control operations and maintenance expenses, net of earnings offsets, through continuation of targeted cost discipline programs and a focus on digitalization of work.