American Electric Power, the parent company to Public Service Company of Oklahoma, reported its revenues of $5.31 billion rose 13.2% from the year-ago quarter’s level of $4.70 billion.
Full-Year Revenue Performance
For 2025, the company recorded revenues of $21.88 billion, which missed the Zacks Consensus Estimate of $21.96 billion. The full-year top line, however, improved from $19.72 billion generated last year.
Fourth-Quarter Earnings Snapshot
In 2024’s fourth quarter, AEP had earnings of $664 million or $1.235 per share. Its operating earnings fell as well from $660 million or $1.24 in the fourth quarter of 2024 to $638 million or $1.19 per share in the just completed fourth quarter.
Annual Earnings Comparison
For the full year, GAAP earnings were $3.58 billion or $6.70 per share, compared with GAAP earnings of $2.97 billion or $5.60 per share for year-end 2024. Year-end 2025 operating earnings were $3.19 billion or $5.97 per share, compared with operating earnings of $2.98 billion or $5.62 per share for year-end 2024.
AEP Subsidiaries and Utility Footprint
PSO is among several AEP subsidiaries and others include AEP Generating Co., Appalachian Power, Indiana Michigan Power, Kentucky Power, Kingsport Power, Southwestern Electric Power and Wheeling Power, Ohio Power and AEP Texas.
Data Centers and Large Load Demand
Large load has become an issue for AEP and other utilities as they focus on providing electrical power to large industries including the addition of data centers. Such is the case in Oklahoma where Public Service Company was allowed last year to complete its acquisition of Green Country natural gas plant in Tulsa. It is also in the process of seeking more approval of costs toward expanding its generating abilities.
AEP took note in its financial report.
Generational Load Growth Drives Investment
AEP continues to expand its large load customer base, with signed agreements for an additional 28 gigawatts (GW) of load since last October, bringing the incremental demand to 56 GW of new load by 2030. This incremental load has doubled since October, underscoring the confidence customers have in AEP to deliver complex projects throughout its service area. Load in AEP Texas alone has increased from 13 GW to 36 GW all backed by signed letters of agreement with well-capitalized hyperscalers and mega-sized data center developers. AEP is committed to building the necessary transmission and distribution infrastructure in Texas and is partnering with ERCOT to bring these large loads online in a timely manner and within the regulatory construct. The implementation of Texas Senate Bill 6 is expected to provide additional clarity and certainty on the timing of when these new loads will interconnect.
Expanding the Capital Plan
Additional opportunities are expanding the company’s current $72 billion five-year capital plan. AEP has identified $5 billion to $8 billion in additional transmission and generation projects. These include competitively awarded 765-kilovolt (kV) transmission projects selected by multiple regional transmission organizations, both inside and outside AEP’s service territory. AEP was proactive in securing Bloom Energy fuel cells which has positioned the company very well to pursue early development of a generation facility project in Wyoming, backed by $2.65 billion in fuel cell purchase commitments. The investments needed to serve the additional 28 GW of load in the updated demand forecast are not included in the current capital plan or the $5 billion to $8 billion of additional investment.
New Generation Resources
AEP is also advancing multiple generation solutions to support incremental load growth. In 2025, AEP’s operating companies acquired 2.2 GW of new generation resources which provide immediate access to needed generation in high-growth regions. Additionally, AEP has secured over 10 GW of gas turbine capacity from major manufacturers, as well as strategic partnership agreements that support AEP’s industry-leading 765-kV development capabilities, enabling the company to connect new load to the grid.
Rate Structures and Customer Protections
“AEP supports federal and state calls for action to ensure that costs for providing service to new large load customers are fairly allocated. The company has led the way in working with stakeholders to protect customers from these cost impacts.
In 2025, new rate structures were approved for AEP’s operating companies in Indiana, Ohio, Kentucky and West Virginia, requiring large load customers to pay for the new infrastructure needed to connect to the grid. Similar proposals are under review in Michigan, Oklahoma, Virginia and SWEPCO’s Texas service territory.
Industry Model for Large Load Policy
“AEP’s approach to large load customers is serving as a model for the industry,” Bill Fehrman, AEP chairman, president and chief executive officer said. “Nearly two years ago, AEP proposed a first-of-its-kind rate structure to address the costs of connecting large customers to the grid. This approach is being adopted in states across the country. Through federal loans, state grants, innovative rate designs and direct bill assistance, we are working to limit bill impacts while continuing to invest in the system. In addition to delivering safe and reliable power, we remain focused on affordability and protecting residential customers from increased costs.”