AEP narrows 2022 earnings guidance, issues in-line 2023 outlook
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American Electric Power (NASDAQ:AEP) said Tuesday it plans to spend $40B through 2027 with an emphasis on transmission, distribution and renewable energy, including $26B allocated to transmission and distribution operations to continue building a modern, resilient energy grid, as well as $9B toward regulated renewable generation.
AEP (AEP) said it is adjusting its near-term carbon dioxide emission reduction target from a 2000 baseline to a 2005 baseline, upgrading its 80% reduction by 2030 target to include full Scope 1 emissions and accelerating its net-zero goal by five years to 2045.
The company also raised the lower end of its FY 2022 operating earnings guidance range to $4.97-$5.07/share from $4.87-$5.07 previously, in line with $4.99 analyst consensus estimate, and announced FY 2023 operating earnings guidance of $5.19-$5.39/share, vs. $5.30 consensus, with a projected annual operating earnings growth rate of 6%-7%.
Earlier this year, AEP said it would sell its portfolio of contracted, unregulated renewable energy assets, and the company said it is on track to close during Q2 2023.
The company said last week that it expects to complete the sale of its Kentucky operations in January.