Dive Brief:
- American Electric Power says its 2019-2023 capital investment plan will focus on regulated operations, with three-quarters of a $33 billion budget directed toward transmission and distribution operations to "enhance service for customers."
- The company provided an update on its financial outlook and plan at the annual Edison Electric Institute Financial Conference over the weekend in San Francisco. Driven by its regulated and renewables investments, AEP anticipates 2019 operating earnings will range from $4 to $4.20/share, with a projected annual operating earnings growth rate of 5% to 7%.
- AEP plans to invest approximately $16.6 billion in its transmission businesses and another $8.3 billion in distribution businesses over the next five years.
Dive Insight:
AEP plans to spend $33 billion from 2019 to 2023, and the vast majority of that will go toward regulated operations where utilities earn a set rate of return. AEP also has $2.7 billion in new renewable generation in its capital plan, which includes approximately $2.2 billion for competitive, contracted renewable projects.
AEP said it "intends to work with regulators to identify additional opportunities to add renewable generation in its regulated jurisdictions."
The company's "capital investments over the next five years will be focused on advanced infrastructure, innovative technologies and cleaner generation resources," Chairman, President and CEO Nicholas Akins said in a statement.
Earlier this year, AEP unveiled a plan to cut carbon dioxide emissions 60% from 2000 levels by 2030. To get there, the company says it will add more than 8,300 MW of wind and solar generation and more than 2,600 MW of gas-fired generation to its regulated generation fleet by 2030.
AEP had been developing the largest wind farm in the United States, but dropped the project earlier this year when Texas regulators determined it did not provide enough benefits to customers.
