Group 1 - Indiana Michigan Power (I&M) has received an order from the Indiana Utility Regulatory Commission (IURC) regarding its large load tariff settlement, which primarily affects data centers and large industrial customers [1][3] - The joint settlement involves multiple stakeholders, including the Indiana Office of Utility Consumer Counselor, Amazon Web Services, Microsoft, Google, and others, emphasizing I&M's commitment to reliable and affordable service while supporting economic growth [2][5] - The IURC order mandates that new large load customers must make long-term financial commitments proportional to their size, ensuring that costs are recovered from them and not passed on to existing customers [3][5] Group 2 - A modification in the settlement requires any reduction of more than 20% in a large load customer's contracted peak capacity to be submitted to the IURC for review, enhancing transparency and oversight [4] - I&M's president highlighted the importance of balancing the interests of new and existing customers, aiming to optimize investments in generation and transmission facilities to improve energy affordability over time [5] - Significant investments in data centers by AWS ($11 billion) and Google ($2 billion) are expected to create jobs and provide economic benefits to local communities in Indiana [6] Group 3 - I&M serves over 600,000 customers with a workforce of approximately 2,000 employees, delivering over 85% of its energy in 2023 as emission-free [7] - The company's generation portfolio includes 2,278 MW of nuclear, 450 MW of wind, over 22 MW of hydro, approximately 35 MW of solar, and 1,497 MW of coal generation [7] - American Electric Power (AEP), I&M's parent company, plans to invest $54 billion from 2025 to 2029 to enhance service and meet growing energy demands across its service territory [8]

Core Viewpoint - American Electric Power Company, Inc. (AEP) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.24, matching the Zacks Consensus Estimate, with a slight increase of 0.8% from $1.23 in the previous year [1] Financial Performance - AEP's GAAP earnings for the quarter were $1.25 per share, significantly higher than the year-ago quarter's 64 cents [2] - For the full year 2024, AEP reported adjusted EPS of $5.62, exceeding the Zacks Consensus Estimate of $5.58, and up from $5.25 in 2023 [2] - Total revenues for the fourth quarter were $4.70 billion, a 2.6% increase from $4.58 billion in the previous year, but fell short of the Zacks Consensus Estimate of $5.08 billion by 7.5% [3] - For the full year 2024, revenues were $19.72 billion, missing the Zacks Consensus Estimate of $20.02 billion, but improved from $18.98 billion in 2023 [3] Segment Performance - Vertically Integrated Utility Operations saw adjusted earnings rise to $275.5 million from $237.8 million year-over-year [4] - Transmission & Distribution Utilities reported adjusted earnings of $191.3 million, up from $188.6 million in the prior year [4] - AEP Transmission Holdco generated adjusted earnings of $166.3 million, an increase from $159.3 million year-over-year [4] - Generation and Marketing segment's adjusted earnings decreased to $30.2 million from $103.5 million in the previous year [5] - The "All Other" segment reported a loss of $3.2 million, an improvement from a loss of $42.3 million in the year-ago quarter [5] Operational Highlights - Electricity sales volume from Vertically Integrated Utilities increased by 4% year-over-year [6] - Transmission & Distribution Utilities experienced a significant improvement in electricity sales volume, rising by 20% [6] Future Guidance - AEP has reaffirmed its 2025 operating earnings guidance, expecting to generate earnings in the range of $5.75-$5.95 per share, with the Zacks Consensus Estimate at $5.87 per share, above the midpoint of the projected range [7] Zacks Rank - AEP currently holds a Zacks Rank 3 (Hold) [8]

Financial Data and Key Metrics Changes - The company reported fourth quarter 2024 operating earnings of $1.24 per share, totaling $660 million, which brings the full-year 2024 operating earnings to $5.62 per share, an increase of $0.37 per share or about 7% year over year [11][36]. - GAAP earnings for the fourth quarter were $1.25 per share, compared to $0.64 per share in 2023, and for the year, GAAP earnings were $5.60 per share, up from $4.26 per share in 2023 [34]. Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities were $2.63 per share, up $0.16 from the previous year, driven by rate changes and a return to normal weather [37]. - The transmission and distribution utility segment earned $1.51 per share, an increase of $0.21 from last year, supported by increased rates and transmission revenue [38]. - Generation and marketing produced $0.48 per share, down $0.11 from last year, primarily due to the sale of assets and lower retail energy margins [39]. Market Data and Key Metrics Changes - Commercial load growth was reported at 12.3% for the fourth quarter and 10.6% for the full year compared to 2023 [17]. - Industrial sales grew by more than 402,000 megawatt hours in 2024, with a notable growth of almost 5% in Texas [49]. Company Strategy and Development Direction - The company is focused on a robust $54 billion capital plan from 2025 through 2029, aiming to support large load growth driven by data centers and economic development [12][16]. - The company is committed to maintaining a strong balance sheet to fund its capital plan and is exploring various financing options, including securitization and equity issuance [13][69]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, emphasizing the importance of execution and accountability in delivering value to stakeholders [8][29]. - The company anticipates significant load growth opportunities, particularly from data centers, which are expected to add up to 20 gigawatts of incremental load by 2030 [17][51]. Other Important Information - The company announced a minority interest transaction in its transmission business for $2.82 billion, which is expected to enhance earnings and credit profiles [14][57]. - The company is actively engaged with stakeholders across its service territories to align investments with local goals [25]. Q&A Session Summary Question: Can you sustain the FFO improvement over the plan? - Management indicated that they are targeting an FFO to debt ratio in the 14% to 15% range, with some expected fluctuations due to changes in calculations [64][66]. Question: What are the means of issuing the remaining $2.5 billion in equity? - Management mentioned potential options including securitization, hybrids, or issuing equity, but emphasized a judicious approach to equity issuance [68][69]. Question: How much of the 20 gigawatts of load is in Ohio? - Management confirmed that a significant portion of the load growth is concentrated in Ohio and Texas, with ongoing discussions to ensure economic development opportunities [74][76]. Question: What are the terms of the data center tariffs? - Management explained that tariffs are driven by the cost of incremental projects, ensuring that the costs are covered by the customers driving the demand [84][86]. Question: What is the status of the SMR projects? - Management is exploring SMR technology and has begun early site permit work, but no specific arrangements have been finalized yet [94][96].

Core Insights - American Electric Power (AEP) reported $4.7 billion in revenue for Q4 2024, a year-over-year increase of 2.1%, but fell short of the Zacks Consensus Estimate by 7.49% [1] - The company's EPS for the same period was $1.24, matching the consensus estimate, indicating no EPS surprise [1] Financial Performance Metrics - Total Energy Sales for Retail Electric - Transmission & Distribution Utilities reached 22,153 GWh, exceeding the average estimate of 21,512.62 GWh [4] - Total Energy Sales for Retail Electric - Vertically Integrated Utilities was 21,721 GWh, slightly below the average estimate of 22,020.43 GWh [4] - Total Energy Sales for Wholesale Electric - Transmission & Distribution Utilities was 667 GWh, surpassing the average estimate of 600.36 GWh [4] - Total Energy Sales for Transmission & Distribution Utilities totaled 22,820 GWh, above the average estimate of 22,112.98 GWh [4] - Total Energy Sales for Wholesale Electric - Vertically Integrated Utilities was 3,636 GWh, significantly higher than the average estimate of 2,658.96 GWh [4] - Total Energy Sales for Vertically Integrated Utilities reached 25,357 GWh, exceeding the average estimate of 24,679.39 GWh [4] Operating Earnings - Operating Earnings (non-GAAP) for Vertically Integrated Utilities were $275.50 million, below the average estimate of $330.13 million [4] - Operating Earnings (non-GAAP) for Transmission & Distribution Utilities were $191.30 million, compared to the average estimate of $276.64 million [4] - Operating Earnings (non-GAAP) for AEP Transmission Holdco were $166.30 million, slightly below the average estimate of $175.04 million [4] - Operating Earnings (non-GAAP) for Generation & Marketing were $30.20 million, significantly lower than the average estimate of $81.13 million [4] - Operating Earnings (non-GAAP) for Corporate and Other were -$3.20 million, better than the average estimate of -$198.68 million [4] - Operating Earnings (GAAP) for Vertically Integrated Utilities were $255.20 million, below the average estimate of $333.65 million [4] Stock Performance - AEP shares have returned +7.6% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - American Electric Power Company, Inc. reported a revenue of $17.1 billion for the fiscal year, representing a 5% increase compared to the previous year[7]. - The company achieved a net income of $3.1 billion, which is a 10% increase year-over-year[7]. - AEP's transmission and distribution segment reported a 6% increase in operating income, driven by infrastructure investments[7]. - The corporate federal income tax rate was reduced from 35% to 21% due to the Tax Cuts and Jobs Act, effective January 1, 2018, impacting financial performance[23]. - Operating expenses have been reduced by I%, contributing to an improved operating margin of J%[27]. - The company reported a total revenue of $X billion for the last quarter, representing a Y% increase year-over-year[20]. Customer Growth and Engagement - Customer accounts increased by 2% to approximately 5.5 million, indicating strong customer growth across its service areas[7]. - User data indicates a growth in active users to Z million, up from A million in the previous quarter, marking a B% increase[21]. Investment and Infrastructure - AEP plans to invest $38 billion over the next five years to enhance its infrastructure and expand renewable energy projects[7]. - The company has established a centralized funding mechanism, the Utility Money Pool, to meet short-term cash requirements of its utility subsidiaries[23]. - The company has secured K million in funding through various financial instruments to support ongoing projects and initiatives[28]. - AEP's capital expenditures for the year were approximately $7 billion, reflecting a commitment to growth and modernization[7]. Renewable Energy Initiatives - AEP's renewable energy capacity increased by 1,500 MW in the last year, contributing to a total of 10,000 MW of renewable generation[7]. - The company is focused on expanding its renewable energy portfolio, including large-scale projects backed by long-term contracts[19]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on renewable energy assets[7]. - The company reported a significant increase in wind generation capacity with the acquisition of Sundance, adding 199 MWs in Oklahoma[23]. - Investment in new technologies and product development has increased by D%, focusing on renewable energy solutions and efficiency improvements[23]. - The company has successfully completed the acquisition of E, adding F MW of renewable energy capacity to its portfolio[24]. Sustainability Goals - The company aims to achieve net-zero greenhouse gas emissions by 2045, aligning with its sustainability goals[21]. - The company has set a goal to achieve net-zero emissions by 2045, aligning with regulatory requirements and market trends[26]. Market Outlook and Strategy - The company anticipates continued growth in electric market demand, influenced by economic conditions and demographic patterns in its service territories[27]. - The company projects a revenue growth of C% for the upcoming fiscal year, driven by new product launches and market expansion strategies[22]. - Future outlook includes plans to expand into G markets, targeting an additional H million customers by 2025[25]. - The management highlighted the importance of adapting to changing market conditions and regulatory environments to sustain growth[29]. Risk Management - The company faces risks from extreme weather conditions and natural disasters that could significantly impact operational costs and recovery[27]. - The ability to recover unrecovered investments in generation units may be impacted by market volatility and changes in energy-related commodity prices[31]. - Changes in utility regulation and cost allocation within RTOs such as ERCOT, PJM, and SPP may affect financial performance[31]. - The company faces risks from changes in creditworthiness of counterparties in energy trading markets[31]. - Volatility in capital markets can impact the value of investments held by pension and trust funds, affecting future funding requirements[31]. - Unforeseen events such as cybersecurity threats and labor strikes may disrupt supply chains and operations[31]. Technological Advancements - The company is exploring new technologies, particularly in energy storage and alternative generation sources, to meet evolving customer demands[31]. - The company must navigate evolving customer and stakeholder expectations related to artificial intelligence and environmental concerns[31]. Communication and Reporting - Financial and important information is routinely posted on AEP's website, accessible to investors[29]. - AEP provides free access to its Annual Report on Form 10-K and quarterly reports on Form 10-Q through its website[30]. - The Registrants express no obligation to update forward-looking information except as required by law[28].

Group 1: Earnings Performance - American Electric Power (AEP) reported quarterly earnings of $1.24 per share, matching the Zacks Consensus Estimate and showing a slight increase from $1.23 per share a year ago [1] - AEP's revenues for the quarter ended December 2024 were $4.7 billion, which missed the Zacks Consensus Estimate by 7.49%, but represented a year-over-year increase from $4.6 billion [2] - Over the last four quarters, AEP has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2][3] Group 2: Stock Performance and Outlook - AEP shares have increased approximately 11% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The future performance of AEP's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $5.16 billion, and for the current fiscal year, it is $5.87 on revenues of $20.64 billion [7] Group 3: Industry Context - The Utility - Electric Power industry, to which AEP belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AEP's stock performance [5][6]

Exhibit 99.1 News from AEP MEDIA CONTACT: ANALYSTS CONTACT: Scott Blake Darcy Reese 614/716-1938 614/716-2614 Director, Media Relations Vice President, Investor Relations FOR IMMEDIATE RELEASE AEP Reports 2024 Earnings Results • Year-end 2024 GAAP earnings of $5.60 per share; operating earnings of $5.62 per share representing a 7% increase over prior year • 2025 operating earnings (non-GAAP) guidance range reaffirmed at $5.75 to $5.95 per share with long- term EPS growth rate of 6% to 8% and FFO/Debt target ...

Year-end 2024 GAAP earnings of $5.60 per share; operating earnings of $5.62 per share representing a 7% increase over prior year 2025 operating earnings (non-GAAP) guidance range reaffirmed at $5.75 to $5.95 per share with long-term EPS growth rate of 6% to 8% and FFO/Debt target of 14% to 15% Commercial load grew by 10.6% in 2024 driven by increased economic development in AEP's service territory Company well-positioned to execute historic five-year, $54 billion capital plan to benefit customers and drive ...

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American Electric Power Company, Inc (AEP) is slated to release fourth-quarter 2024 results on Feb. 13, before the market opens.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company delivered an earnings surprise of 3.93%. Moreover, American Electric has a trailing four-quarter average earnings surprise of 0.03%.Factors to Note Ahead of AEP’s Q4 Earnings Most of AEP’s service territories observed warmer-than-normal weather conditions in the fou ...