American Electric Power Reports Strong Financial Performance in Q3 2024, with Revenues and Net Income Up

American Electric Power Company, Inc. (AEP) reported significant financial performance for the third quarter and the nine months ended September 30, 2024. Total revenues for Q3 2024 reached $5.42 billion, an increase from $5.34 billion in Q3 2023. For the nine months, revenues rose to $15.03 billion from $14.41 billion in the same period last year. Net income attributable to AEP common shareholders for Q3 2024 was $959.6 million, slightly up from $953.7 million in Q3 2023, while for the nine months, net income increased to $2.30 billion from $1.87 billion.

Segment performance showed growth across various areas. The Vertically Integrated Utilities segment generated $571.5 million in Q3 2024, up from $512.5 million in Q3 2023. Transmission and Distribution Utilities also saw an increase, reporting $245.2 million compared to $206.0 million in the prior year. However, the Generation & Marketing segment experienced a decline, with revenues dropping to $93.3 million from $130.7 million in Q3 2023.

Retail revenues increased by $43 million in Q3 2024, driven by higher rider revenues and weather-related usage. However, fuel revenues decreased by $50 million due to lower authorized fuel rates at PSO. Off-system sales increased by $25 million, primarily due to economic hedging activities.

AEP's operational expenses reflected a mixed trend. Purchased electricity, fuel, and other consumables used for electric generation expenses decreased by $37 million, while other operation and maintenance expenses rose by $52 million, largely due to increased transmission services and insurance settlements. Depreciation and amortization expenses increased by $50 million, attributed to a higher depreciable base.

Strategically, AEP has been active in regulatory proceedings. In October 2024, PSO filed a joint stipulation with the Oklahoma Corporation Commission proposing a $120 million annual revenue increase. APCo amended its Virginia base case, reducing its requested annual base rate increase from $95 million to $64 million, with potential further reductions based on environmental compliance expenses.

AEP also faced challenges, including a one-time revenue refund provision of $160 million recorded by SWEPCo in Q2 2024, and ongoing litigation related to environmental regulations and the sale of its competitive contracted renewables portfolio, which resulted in a pretax loss of $112 million in Q1 2023.

As of September 30, 2024, AEP's total assets increased to $100.12 billion from $96.68 billion at the end of 2023. The company maintained a strong liquidity position with $5.49 billion in net available liquidity. Total debt stood at $43.63 billion, reflecting a slight increase from $42.97 billion at the end of the previous year.