American Electric Power, parent company of Public Service Company of Oklahoma reported third quarter earnings improved over a year earlier.
AEP had operating earnings of $924 million or $1.77 a share compared with $831 million and $1.62 a share in the third quarter 2022. The company’s total earnings were $954 million and $1.83 a share, up from $684 million and $1.33 a year earlier.
“Our earnings growth this quarter was driven by our long-term strategy to invest in a modern, reliable energy system to meet the evolving needs of our customers while keeping electricity rates affordable,” said Julie Sloat, AEP chair, president and chief executive officer.
“We are narrowing our operating earnings guidance range to $5.24 to $5.34, maintaining the midpoint of $5.29 and reaffirming our long-term growth rate of 6% to 7% and FFO/Debt target of 14%-15%. On Oct. 24, we announced an increase in our quarterly dividend to 88 cents a share, in line with our earnings growth rate.
“AEP is taking action to de-risk and simplify our business. We completed the sale of our 1,365-megawatt unregulated renewables portfolio in August, netting approximately $1.2 billion. We remain on track with the previously announced sales processes for our retail and distributed resources businesses, our share of a renewable energy joint venture and two non-core transmission joint ventures. We also are continuing our strategic review of the Transource Energy joint venture, which we expect to complete this year,” Sloat said.
“We’ve made significant progress on our five-year, $8.6 billion regulated renewables investment plan, with $6 billion in approved projects and $800 million currently pending commission approval. These projects provide fuel savings for our customers and are aligned with our integrated resource plans. The transmission and distribution investments we’re making to enhance service and reliability for customers also continue to support our earnings results.
She said that even with an expected softening of industrial load due to higher interest rates, the company still expects growth in 2024.