AEP to invest $17bn in energy technologies
May 1, 2018
American Electric Power (AEP) is investing more than $17bn in its core regulated businesses to improve service to customers and advance new energy technologies, according to Nicholas Akins, AEP chief executive officer, at the company's annual meeting last month in Columbus, Ohio.
“AEP is positioned as a premier regulated energy company, with nearly all of our forecasted earnings coming from our regulated businesses,” Akins said. “Our 17,600 employees are focused on providing innovative energy to our customers, integrating new technologies and building a smarter, cleaner and more resilient energy system.”
He said the utility planned to invest $17.7bn in capital over the next three years, including $12.8bn in its transmission and distribution systems and $1.7bn in renewable energy, “as we work to develop the energy system of the future and meet the changing energy needs and expectations of our customers. These investments will continue to support our operating earnings growth rate of five to seven per cent.”
AEP’s forecasted $1.7bn renewable energy investment between 2018 and 2020 does not include the company’s 2000MW wind catcher project, which should bring clean energy and lower bills for its customers in Arkansas, Louisiana, Oklahoma and Texas if approved by regulators in those states.
AEP delivered a total shareholder return of 20.9 per cent in 2017 and increased its quarterly dividend by 5.1 per cent to 62 cents per share. The company’s transmission business contributed 72 cents per share to earnings in 2017, up 33 per cent from 2016.