We made progress on our strategy in the first quarter, despite experiencing the second warmest temperatures in 30 years. AEP’s operating earnings for the first quarter were approximately $572 million. That’s roughly $45 million less than the first quarter of last year. While this isn’t an ideal situation, we’ve successfully navigated conditions like this before.
External factors can give AEP’s financial performance a boost or create drag. This quarter, two big external factors presented challenges:
- Unseasonable weather: Temperatures across our service territory were consistently warmer than average, so customers didn’t need to run their heat as much as usual.
- The timing of interest rate impacts: Part of AEP’s operations are funded by borrowing money for capital projects. It’s more expensive for us to do business when interest rates go up.
- When you think about 2022, interest rates didn’t kick up until the second half of the year. Those interest rates have started to stabilize.
- Comparing things year-over-year, AEP expects the negative impact of interest rates to be more prevalent in the first half of 2023. We already factored this into our operating earnings guidance for the year.
What Julie is saying: “AEP has a strong track record of delivering on our stakeholder commitments and demonstrating disciplined capital and operations and maintenance (O&M) cost management as we invest in a clean and reliable energy system to benefit our customers,” said Julie Sloat, president, chief executive officer.
Putting the quarter in perspective: It’s early in the year and we remain in a position to meet our operational and financial goals.
- Overall, our load growth was strong. Industrial and commercial load continued to grow. These increases more than made up for the decreases we experienced in residential load.
- Our economic development efforts continue to produce results. The increases in residential and commercial load are directly related to economic development projects we’ve been working on for years. For example, multiple data centers have been added in the territory and a new steel plant is coming online in Texas.
- This activity also puts us in a better position to navigate the slowdown that’s happening in the U.S. economy.
Looking at the rest of the year: Our core business is in a strong position, and we’ve reaffirmed our operating earnings guidance range for this year. To keep things on track and ease the impacts of weather, we’re going to have to continue actively managing the business. This looks like:
- Continuing to de-risk the business and focusing on our regulated operations.
- Executing our regulated renewables plan.
- Limiting our discretionary O&M spend
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| William Woods, left, shows off the PSO/EPRI container garden to PSO President and Chief Operating Officer Leigh Anne Strahler, Food On The Move President and CEO Kevin Harper and Food On The Move founder Taylor Hanson. |
A container garden cosponsored by PSO is the latest weapon in the battle against Tulsa’s food deserts.
And, thanks to the involvement of pop star Taylor Hanson, the effort is catching the public’s attention.
“PSO is excited to be part of this important project that will help build a more resilient community, increase access to healthy food and encourage STEM education,” said Leigh Anne Strahler, president and chief pperating officer of PSO. “Container gardens represent the crossroads of agriculture and technology. They produce abundant crops in a clean, energy-efficient manner.”
In October, the container garden was moved to the Tulsa campus of Food On The Move, a Tulsa nonprofit working to end local food deserts with an emphasis on using innovative solutions against legacy issues that have perpetuated hunger.
The unit uses LED lighting, recirculating water pumps, and advanced electronics and sensors to cleanly produce healthy food.
The container garden has been a model of productivity, said William Woods, who manages the unit for Food On The Move. By being careful about HVAC operations, Woods says the unit uses about 50% less power than comparable indoor agriculture units, but produces almost four times more food. The garden produces up to 78 pounds of kale a week — enough to serve 600 families — but only needs five gallons of water a week.
Taylor Hanson, founder of Food On The Move, came to fame as a member of the pop group Hanson, the three-brother group propelled to public attention by the 1997 Grammy-nominated hit “MMMBop.” The Tulsa-based band made a memorable appearance on “Saturday Night Live” and has continued to record and tour.
Hanson joined Strahler and other stakeholders Wednesday in a celebration of the unit’s success and potential, attracting the attention of community leaders and the media.
Hanson saluted the partnership with PSO and EPRI as a valuable way forward in his nonprofit’s goal to help feed the people of Tulsa.
“We believe in the power of innovation and partnership to help combat food insecurity and transform communities,” Hanson said. “The partnership utilizing the PSO/EPRI container garden has already embodied innovation, not only between Food On The Move and PSO, but directly with the communities we serve every day.
“We cannot wait to continue to serve our neighbors through the power of growing produce and bringing healthy food to all of Oklahoma.”
Food On The Move distributes the kale and a wide variety of produce at three community and food resource festivals each month. Each participant receives 30 pounds of fresh produce, a hot meal, and other assistance, such as health checks and resume assistance. Food On The Move also distributes food through existing food nonprofits, such as Catholic Charities. The group plans to add a much larger aquaponic facility and a low-cost grocery store on its site, located in the heart of Tulsa’s food desert.
The need is real in the area immediately around the container garden, said Kevin Harper, president and CEO of Food On The Move. A whole series of social problems grow from food insecurity, he said, “In north Tulsa, we’ve had a food crisis for decades.”
Hunger Oklahoma reports that lack of food increases illness and reduces academic performance, costing Oklahoma $1.4 billion a year. Some 19% of Oklahoma households experience food insecurity.
Strahler said the container garden is also an important tool for STEM education. Food On The Move has established an elective class at Tulsa’s Madison Middle School where hydroponics, aquaponics and food preparation using container garden produce are taught. PSO has used its long-standing connections with Oklahoma FFA to promote the use of container garden data in student indoor agriculture studies.
Frank Sharp, technical executive for EPRI, said the Tulsa container garden is one of 20 that EPRI has sponsored with U.S. utilities, including units cosponsored by SWEPCO and AEP Ohio.
After a year of producing kale to gather data comparable to other EPRI container gardens, Food On The Move plans to grow a variety of vegetables there.
To learn more about Food On The Move, including volunteer opportunities, click here.
American Electric Power today reaffirmed its commitment to Kentucky customers and outlined its strategic plans for Kentucky Power and AEP Kentucky Transco. AEP and Liberty, a subsidiary of Algonquin Power & Utilities Corp., have agreed to terminate the previously announced transaction under which AEP would sell its Kentucky operations to Liberty.
“We’ve served Eastern Kentucky for more than 100 years, and we are working diligently to reimagine our strategy with the goal of not just supporting Kentucky but being an essential part of its economic and energy future,” said Julie Sloat, AEP president and chief executive officer. “We believe there are opportunities ahead for our Kentucky operations, and we will focus our efforts on economic development and providing reliable service for customers.
“To the employees in Kentucky, thank you. Thank you for continuing to work safely and providing great service for our customers. We know that this has been a long process and that the uncertainty has been difficult and stressful. I am confident that we have the right team in place to lead this effort and power the future in Eastern Kentucky,” Sloat said.
AEP and Kentucky Power leadership are sharing information with Kentucky employees in a series of meetings.
“I am happy to announce that Cindy Wiseman has been named president and chief operating officer for Kentucky Power. She is a proven leader in Kentucky and will continue to be a familiar face to our employees, customers and stakeholders,” said Peggy Simmons, executive vice president – Utilities. “I also want to express my appreciation to the employees of Kentucky. Please continue to work safely. Stay focused on the task at hand and continue to serve our Kentucky customers in the way you have throughout this process. The entire AEP team sincerely thanks you for your unwavering commitment to safety, our Kentucky customers and each other.”
Mitchell Plant is still owned by Kentucky Power and Wheeling Power, and the operating agreement remains in place. Employees working at Mitchell will remain Wheeling Power employees.
AEP ended 2022 on a high note and management reaffirmed the 2023 guidance and long-term earnings growth rate of 6-7%. However, stock price in YTD 2023 so far has been a bit rocky. This Street Wise edition will provide insights into recent stock price behavior specific to the utility sector.
AEP’s 2022 Strong Performance
AEP finished 2022 with a solid performance delivering YTD 2022 operating earnings of $5.09, beating analysts’ estimates. Strong load growth, favorable weather and continued investment in AEP’s regulated utilities and transmission drove the positive results. In addition, management reaffirmed 2023 operating guidance of $5.19-5.39 and the long-term earnings growth rate of 6-7% underpinned by a robust 5-year capital plan. Lastly, management reiterated the commitment to simplify and de-risk the business by highlighting updates to the signed agreement for the sale of contracted renewable assets and the Kentucky operations sale expected to close following FERC approval. Analysts and investors were upbeat on another strong earnings beat and our 2023 outlook. They were also pleased by management’s ability to successfully execute the contracted renewables transaction.
Andrew Weisel of Scotia summarized, “We’re impressed with another strong earnings beat, elongating AEP’s track record as one of the best at beating guidance and consensus forecasts. We remain confident in our estimates for 2023+, which are at or near Street-highs for all years. We’re also impressed with the announced sale of contracted renewables for $1.5B, supporting the balance sheet without a notable impact to EPS.”
AEP’s stock price finished 2022 up 6.8%. Comparatively, the UTY Index (Philly) was down 2.4% YTD, the S&P Electric Utility Index was down 0.8% YTD and the S&P 500 was down 19.4% YTD.
With such a strong performance in 2022, one may wonder what caused the recent slump in the stock price YTD 2023. To answer this question, we need to look at the macroeconomic impact of a rising interest rate environment and its effect on the utility sector as a whole.
Interest Rates are Everything – Again
In general, interest rate volatility directly influences utilities because utility stock performance has an inverse relationship with interest rate activity. As interest rates fall, utility stock prices typically increase. As interest rates rise, utility stock prices usually decline. This is due to the corresponding yields available on government bonds. With rising interest rates, government bonds can be more attractive to some traditional investors. Additionally, the capital-intensive nature of the utility industry means utilities rely on debt for funding. When interest rates rise, the cost of doing business is higher for utilities since borrowing costs increase.
This inverse relationship broke starting in 2020. Despite the collapse in interest rates, utilities underperformed in 2020-2021 due to the impacts of working from home and investors’ attraction to technology stocks. In 2022, due to economic uncertainties, investors strengthened their positions in utilities despite rising interest rates. This could be attributed to investors’ flight to safety with rotations out of the risker technology stocks and into defensive stocks such as utilities, which typically deliver stable earnings and consistent dividends. The strong performance in 2022 drove utilities’ prices up and investors viewed utilities as expensive relative to bonds, resulting in the reversion witnessed at the beginning of 2023.
We are now back where we started, utilities trading with a high correlation to the inverse of interest rates. Steve Fleishman of Wolfe Research summed it up as follows, “Utilities underperformance continues. Earnings season wasn’t as bad as feared and relative earnings estimates vs. the market are actually improving. This is clearly a macro shift away from defensive, as utilities are at the bottom of the heap. The high-interest rate environment remains a clear headwind for the sector.”
Although 2023 has been a rocky start, management is optimistic about AEP’s 2023 outlook, including another year of projected retail load growth and confidence in our teams’ strong ability to execute on investments in regulated utilities and transmission.
On March 3, 2023, AEP’s stock closed at $89.09, down 6.2% YTD. Comparatively, the UTY Index (Philly) was down 7.5% YTD, the S&P Electric Utility Index was down 7.3% YTD and the S&P 500 was up 5.4%. In addition, the 10-year yield moved above 4% in March 2023 for the first time since November 2022.
Upcoming Events
Over the following weeks, Investor Relations will accompany AEP Management Team in conducting one-on-one meetings with investors at the JP Morgan conference in Chicago on April 5 and the Credit Suisse conference in New York City on May 17.
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Watch for future Street Wise editions discussing earnings, regulatory updates and market trends related to AEP and the electric utility industry.
AEP closed at $89.09 March 3, posting a total return of -3.59% since Feb. 17. During the same period, the S&P Electric Utilities Index total return was -2.94%, and the S&P 500 Index total return was -.75%.
We often hear technology is rapidly evolving. Douglas Horstmann, Technology manager based in South Bend, Ind. knows that all too well. This month Horstmann celebrates his 44th anniversary with I&M. Over the years he had a front row seat to numerous technological advancements.
Horstmann started his career with I&M in 1979. That’s the year email capabilities and technical support was offered to those with computers and the world’s first cellular network launched in Japan.
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| Douglas Horstmann celebrates 44 years at I&M. |
“The introduction of the personal computer and the internet completely changed not only how we did business, but the entire world. It was amazing to see how the technology changed and so rapidly,” Horstmann said. “Also, the moderation of the power grid and fiber optic connections tremendously changed the future of energy delivery. The grid is still evolving, so it’s been cool to see it all grow and develop to better serve our customers.”
Horstmann has worked as a transmission engineer, telecom engineer and a telecom manager.
“My favorite part about working here is the people. I get to interact with several departments and get to know folks,” Horstmann said. “The best day is each day we all go home in the same condition or better than we arrived at work.”
Horstmann goes on to say he has seen a big cultural shift in his more than 16,000 days with I&M. He boasts AEP and I&M are great companies to work for and offers this advice to those just starting their careers.
“Make sure you take your time to learn your new career. You can’t learn everything overnight,” Horstmann said. “No matter what department you’re in, remember to keep safety and watching out for one another is our top priority.”
If you see Horstmann around in the halls or in meetings, congratulate him!
“I can’t believe the time went by so fast. I have enjoyed every job, every one I’ve worked with and every year I’ve worked here,” said Horstmann.
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| Retirees and active employees worked to complete this house in Columbus for the Ba family. |
AEP active and retired employees recently completed their 25th home build in central Ohio.
Since 1996, AEP has partnered with Habitat for Humanity (HFH) MidOhio to provide homes to families in need. AEP is Habitat’s largest and longest serving regional partner.
Volunteers have served in roles ranging from roof installation to interior painting. And the AEP Foundation has provided financial support to many of these projects.
During this partnership, AEP and the AEP Foundation have contributed over $3 million, 12,000 volunteers and more than 78,000 hours to HFH MidOhio.
“Habitat for Humanity MidOhio has done so much for families in the region and the AEP Foundation is proud to support their work,” said Janelle Coleman, president, AEP Foundation. “Affordable housing is an ongoing issue for our communities, so we’re looking forward to continuing this partnership and supporting Habitat for Humanity MidOhio in the years to come.”
Keys to the milestone 25th home, located in the East Linden neighborhood, were turned over to the Ba family in January.
Eight AEP retirees supported this effort. Those volunteers include Jim Rosing, who led AEP’s partnership with HFH MidOhio for many years.
Kirk Nofzinger, audit engagement manager, has also been key to the partnership. Nofzinger helped organize the 25th build and has served as the partnership’s community champion since Rosing’s retirement.
“Every home we build is special because of what it means to the families,” said Nofzinger. “This project has added importance because it’s a milestone in our partnership with Habitat for Humanity. We’ve got great relationships and a lifetime of memories with their team.”
The Ba family home was built to meet green and energy efficiency standards. This provides a comfortable environment for the family and affordable monthly expenses.
Work on the 26th home is expected to begin in the summer.
“I would encourage all employees to consider volunteering for a local HFH project,” said Nofzinger. “You don’t need to have any construction experience to be helpful and the work is both fun and fulfilling. You’ll also build great relationships and make a lasting impact on a family in need.”
AEP refined our financial and operations focus in 2022. Our message of active management and investing in renewables and infrastructure went over well with Wall Street. We grew our earnings in the fourth quarter of 2022 and for the year overall.
What Julie is saying: “Our focus on building a safe, reliable and cleaner energy system for the future while keeping rates affordable and attracting new business is delivering benefits for our customers, communities and investors.”
2022 highlights: The theme for last year was that we delivered on our commitments to stakeholders. Here’s how we did that:
- Strong earnings: We generated strong earnings, with operating earnings coming in at $5.09 per share.
- In 2022, we raised and narrowed our operating earnings guidance range to $4.97 to $5.07 per share. We also increased our long-term growth rate to 6% to 7%.
- Regulated renewables: In March, the North Central Energy Facilities wind project was completed. North Central is an important step in our commitment to transform our generation fleet. Successfully bringing one of the largest wind projects online shows investors we’re making progress on our strategy.
- Load growth: We saw load growth in all the states where we operate. Increased growth in commercial and industrial sales helped increase our overall growth, even though residential growth was flat.
- Wins from economic development: We experienced strong growth in 2021 and 2022. Much of this success can be traced back to our long-term economic development efforts. Work done several years ago to help attract new businesses to our service territory is now generating benefits for us and communities as these companies begin operations. Growth and new jobs helps keep rates affordable for customers.
The plan for 2023: There’s a lot going on in the U.S. economy – inflation, high interest rates and higher energy costs. This is top of mind for investors and for our customers. Even though we’ll likely face continued economic challenges this year, we have a plan to keep ourselves on track:
- Keep projects in our capital plan moving: Our 2023-2027 capital investment plan is $40 billion with an emphasis on wires and renewables.
- Any issue getting critical supplies has the potential to impact our strategy. In 2022, we were able to navigate the supply chain crisis better than most companies, which allowed us to keep our plans on track.
- Our Procurement and Supply Chain teams have been working with other business units, the federal government and other utilities to address this continuing challenge. They also expanded our supplier network for critical items like distribution transformers and voltage regulators.
- Focus on regulatory activity and legislative initiatives: Getting favorable regulatory outcomes is critical to the financial health of our company. We’re working across our service territory on base rate cases and approvals for our regulated renewables.
- Continue to be mindful of costs. Affordability is a key issue as customers are managing higher fuel and other costs. We all need to be mindful of costs and challenge ourselves to operate as efficiently and effectively as possible.
- Make progress on our efforts to de-risk the business: Investors are looking for us to close on the sale of Kentucky Power to Liberty and on the sale of our unregulated contracted renewables. We also expect to complete our strategic review of the AEP Retail business in the first half of this year.
Arkansas
Nelson Amos, 71, Flint Creek Plant, Gentry, AR died 10/15/2022
Illinois
Roger McCandless, 72, Cook Coal Terminal, Metropolis, IL died 11/2/2022
Indiana
Rill Ford, 82, Ft Wayne One Summit Square, Ft. Wayne, IN died 12/20/2022
Hal Usher, 90, Ft Wayne One Summit Square, Ft. Wayne, IN died 11/30/2022
Robert Shutt, 85, Ft Wayne One Summit Square, Ft. Wayne, IN died 11/20/2022
David Pisula, 73, Northeast Svc Center, New Haven, IN died 11/10/2022
Gerry Baughman, 80, South Bend Svc Ctr, South Bend, IN died 11/4/2022
Jay Scudder, 65, Tanners Creek Plant, Lawrenceburg, IN died 10/27/2022
Betty Miller, 75, Ft Wayne One Summit Square, Ft. Wayne, IN died 10/24/2022
John Ficker, 76, Rockport Plant, Rockport, IN died 10/13/2022
Donald Dennis, 87, Marion Svc Ctr-Bldg#1, Marion, IN died 10/12/2022
Norma Addington, 93, Winchester Svc Ctr, Winchester, IN died 10/8/2022
Myron Boyle, 69, Muncie Srv Ctr, Muncie, IN died 10/5/2022
James Lafollette, 89, Tanners Creek Plant, Lawrenceburg, IN died 10/3/2022
Philip Dickes, 91, Ft Wayne One Summit Square, Ft. Wayne, IN died 9/30/2022
Kentucky
William England, 88, Big Sandy Plant, Louisa, KY died 12/23/2022
Hulen Dunkin, 72, AEP River Operations -Paducah, Paducah, KY died 10/18/2022
Louisiana
Carolyn Shott, 73, Shreveport Office, Shreveport, LA died 12/25/2022
Lillian Custer, 90, Shreveport General Office, Shreveport, LA died 12/16/2022
John Kraemer, 67, Algiers Dockside Flt&Rpr, New Orleans, LA died 11/27/2022
Robert Morton, 86, Shreveport General Office, Shreveport, LA died 11/24/2022
Archie McDurmond, 72, Vivian, Vivian, LA died 11/22/2022
Margaret Black, 77, Shreveport Operations, Shreveport, LA died 11/21/2022
Bobby Rawls, 92, Shreveport General Office, Shreveport, LA died 11/13/2022
Patricia Blue, 85, Shreveport General Office, Shreveport, LA died 11/12/2022
Bobby Deloach, 88, Shreveport General Office, Shreveport, LA died 10/22/2022
Donald Nichols, 90, Shreveport General Office, Shreveport, LA died 10/21/2022
Todd Nissen, 33, Shreveport Operations, Shreveport, LA died 10/17/2022
Byron King, 91, Shreveport General Office, Shreveport, LA died 10/16/2022
Peggy Peal, 85, Shreveport General Office, Shreveport, LA died 10/12/2022
Thomas Stovall, 92, Shreveport General Office, Shreveport, LA died 9/26/2022
Michigan
James Peake, 41, Cook Nuclear Plant, Bridgman, MI died 12/13/2022
Robert Detwiler, 83, St Joe Ofc & Svc Ctr, Benton Harbor, MI died 12/11/2022
George Lovelady, 92, Buchanan Ofc/Svc Ctr, Buchanan, MI died 11/19/2022
Larry Evans, 72, Buchanan Ofc/Svc Ctr, Buchanan, MI died 11/6/2022
Richard Wooley, 73, New Buffalo Svc Ctr, New Buffalo, MI died 10/19/2022
Banwari Arya, 82, Buchanan Nuclear Ofc, Buchanan, MI died 10/17/2022
New York
Edward Murawski, 98, Rockefeller Center, New York, NY died 10/18/2022
Ohio
Charles Underwood, 79, Columbus Ne Svc Ctr, Columbus, OH died 1/13/2023
James Jacquet, 92, Zanesville Office, Zanesville, OH died 1/9/2023
Ronald Layton, 80, Conesville Plant, Conesville, OH died 1/7/2023
Thomas Brannock, 84, Lancaster Office Bldg, Lancaster, OH died 1/6/2023
Donald Silvers, 74, AEP Headquarters, Columbus, OH died 1/4/2023
Robert Scott, 93, Lancaster Office Bldg, Lancaster, OH died 1/4/2023
Ronald Patterson, 72, AEP Headquarters, Columbus, OH died 1/1/2023
Jomar Diaz, 93, AEP Headquarters, Columbus, OH died 12/31/2022
Frederick Wheeler, 70, Gavin, Cheshire, OH died 12/30/2022
Tim Lyons, 70, Columbus Sw Svc Ctr, Columbus, OH died 12/28/2022
Brian Hendrickson, 64, AEP Headquarters, Columbus, OH died 12/25/2022
Lawrence Lovejoy, 77, Lancaster Office Bldg, Lancaster, OH died 12/23/2022
Sue Blum, 74, Findlay Office, Findlay, OH died 12/22/2022
Eldred Williams, 97, Cambridge Office Bldg, Cambridge, OH died 12/15/2022
Michael Cappel, 72, Conesville Plant, Conesville, OH died 12/13/2022
Paul Oyer, 89, Chillicothe Svc Ctr, Chillicothe, OH died 12/13/2022
Thomas Moore, 78, Cardinal Plant, Brilliant, OH died 12/12/2022
Sharon Hicks, 72, Arena Building, Columbus, OH died 12/11/2022
Carol Stricker, 90, 850 Tech Center Bldg, Gahanna, OH died 12/11/2022
Dennis Dorman, 76, Findlay Service Center, Findlay, OH died 12/10/2022
Herbert Hurst, 81, Central Ohio Coal, Cumberland, OH died 12/10/2022
Michael Veres, 79, Tiffin Service Center, Tiffin, OH died 12/10/2022
Stephen Smalley, 70, Conesville Plant, Conesville, OH died 12/9/2022
Wayne Williamson, 94, Canton Estrn Reg Ofc, Canton, OH died 12/8/2022
Vishu Sharma, 84, AEP Headquarters, Columbus, OH died 12/7/2022
Floyd Komaromy, 85, Conesville Plant, Conesville, OH died 12/7/2022
Tommy Antill, 66, AEPOH 700 Bldg Gahanna, Gahanna, OH died 12/5/2022
Richard Rogers, 77, Minerva Annex, Columbus, OH died 12/3/2022
Herbert Barker, 77, Athens Ofc & Svc Center, Athens, OH died 12/1/2022
Jesse White, 92, Athens Ofc & Svc Center, Athens, OH died 12/1/2022
Gerald Beckley, 56, Lancaster Service Bldg, Lancaster, OH died 11/29/2022
Helen Boley, 88, E Liverpool Ofc Bldg, East Liverpool, OH died 11/29/2022
Bonnie McKeag, 81, Chillicothe Office, Chillicothe, OH died 11/28/2022
Edward Runyan, 74, Cardinal Plant, Brilliant, OH died 11/27/2022
William Geib, 75, Canton South Svc Ctr, Canton, OH died 11/27/2022
Joseph Kim, 80, 825 Tech Center Bldg, Gahanna, OH died 11/25/2022
Stanley Horowitz, 97, AEP Headquarters, Columbus, OH died 11/24/2022
Glen McDade, 85, Canton General Svc Ctr, Canton, OH died 11/21/2022
Thomas Wolf, 69, AEPOH 700 Bldg Gahanna, Gahanna, OH died 11/18/2022
Ray McAllister, 76, AEPOH 700 Bldg Gahanna, Gahanna, OH died 11/16/2022
George Valociek, 85, Lancaster Office Bldg, Lancaster, OH died 11/14/2022
Kelly Ritchie, 46, AEP Headquarters, Columbus, OH died 11/13/2022
Donald Nelson, 73, AEPOH 700 Bldg Gahanna, Gahanna, OH died 11/11/2022
John Istvan, 74, AEP Headquarters, Columbus, OH died 11/8/2022
Anthony Dicenzo, 86, Columbus SE Service Center, Columbus, OH died 11/7/2022
Joseph Ruby, 84, AEP Headquarters, Columbus, OH died 11/6/2022
Harry Setser, 88, Portsmouth Svc Ctr, Portsmouth, OH died 11/6/2022
Laura Mumford, 72, Conesville Plant, Conesville, OH died 11/2/2022
William Arnott, 79, Athens Ofc & Svc Center, Athens, OH died 10/29/2022
David Stemple, 89, Lancaster Office Bldg, Lancaster, OH died 10/29/2022
Ronald Shaw, 80, AEP Headquarters, Columbus, OH died 10/27/2022
Mary Sample, 59, Canton Estrn Reg Ofc, Canton, OH died 10/26/2022
Larry McFarland, 77, Conesville Plant, Conesville, OH died 10/19/2022
Curt Kerslake, 55, AEP Headquarters, Columbus, OH died 10/19/2022
Ralph Dunlevy, 96, AEP Headquarters, Columbus, OH died 10/17/2022
David Roberts, 85, AEP Headquarters, Columbus, OH died 10/12/2022
William Kittle, 81, Conesville Plant, Conesville, OH died 10/8/2022
Robert Manning, 88, 850 Tech Center Bldg, Gahanna, OH died 10/8/2022
John Moore, 90, Gavin, Cheshire, OH died 10/5/2022
Richard Alverson, 77, Coshocton Service Ctr, Coshocton, OH died 10/3/2022
James Spitzl, 80, AEPOH 700 Bldg Gahanna, Gahanna, OH died 10/1/2022
Eugene Balizet, 87, Canton Estrn Reg Ofc, Canton, OH died 9/23/2022
Oklahoma
Ruby Price, 90, Tulsa General Office, Tulsa, OK died 1/10/2023
Jimmie Key, 91, Tulsa General Office, Tulsa, OK died 1/9/2023
Leon Woodring, 82, Mid Metro, Tulsa, OK died 1/1/2023
Billy Due, 87, Tulsa General Office, Tulsa, OK died 12/31/2022
Betty Williams, 91, Tulsa General Office, Tulsa, OK died 12/31/2022
Richard Kolb, 93, Tulsa General Office, Tulsa, OK died 12/25/2022
Elizabeth Wegley, 69, Tulsa General Office, Tulsa, OK died 12/23/2022
Jeffery Ray, 49, Mid Metro, Tulsa, OK died 12/22/2022
Charles Haley, 75, Mid Metro, Tulsa, OK died 12/13/2022
Jeremy Grooms, 42, Tulsa General Office, Tulsa, OK died 11/26/2022
James Scott, 77, Tulsa General Office, Tulsa, OK died 11/23/2022
Richard Brewster, 78, Southwestern Station, Anadarko, OK died 11/23/2022
H Anderson, 83, Tulsa General Office, Tulsa, OK died 11/22/2022
Bobby Cathey, 80, McAlester Operations Center, McAlester, OK died 11/21/2022
George Bible, 62, Tulsa General Office, Tulsa, OK died 11/19/2022
Jerald Morris, 80, Tulsa General Office, Tulsa, OK died 11/13/2022
Fredonia Smith, 84, Tulsa Square One, Tulsa, OK died 11/4/2022
Vernon Woolman, 92, Tulsa General Office, Tulsa, OK died 10/29/2022
Rodney James, 75, Mid Metro, Tulsa, OK died 10/23/2022
Layton Holt, 90, Tulsa General Office, Tulsa, OK died 10/20/2022
Francis Newman, 76, Alsuma Meter & Substation, Tulsa, OK died 10/18/2022
David McNeer, 74, Tulsa General Office, Tulsa, OK died 10/7/2022
Michael Munson, 66, Tulsa General Office, Tulsa, OK died 10/6/2022
Jon Hancox, 75, Northeastern Stn 3&4, Oologah, OK died 10/2/2022
Texas
Manuel Rosas, 80, Home Office-CC, Corpus Christi, TX died 1/3/2023
Welton Fudge, 92, Home Office-CC, Corpus Christi, TX died 12/27/2022
Ennis Newton, 85, Home Office-CC, Corpus Christi, TX died 12/26/2022
Elsworth Bird, 98, Home Office-CC, Corpus Christi, TX died 12/18/2022
Leon Rodriguez, 72, El Campo Svc Center, El Campo, TX died 12/15/2022
Carlos Rodriguez, 88, Home Office-CC, Corpus Christi, TX died 12/14/2022
James Winnett, 73, Vernon, Vernon, TX died 12/13/2022
Gregory Tuggle, 55, Texarkana Operations, Texarkana, TX died 12/12/2022
Travis Williams, 83, General Office, Abilene, TX died 12/11/2022
Lawrence Morrow, 86, Home Office-CC, Corpus Christi, TX died 12/5/2022
Doris Allen, 92, Home Office-CC, Corpus Christi, TX died 11/16/2022
Norris Keough, 95, General Office, Abilene, TX died 11/14/2022
Royce Green, 67, Vernon, Vernon, TX died 11/9/2022
Alberto Garcia, 88, Home Office-CC, Corpus Christi, TX died 11/7/2022
Marita Taylor, 82, General Office, Abilene, TX died 10/31/2022
Amos Harden, 93, Home Office-CC, Corpus Christi, TX died 10/26/2022
Joseph Moore, 84, Home Office-CC, Corpus Christi, TX died 10/26/2022
James Peck, 70, Wilkes Plant, Avinger, TX died 10/17/2022
Henry Pfenninger, 79, Home Office-CC, Corpus Christi, TX died 10/15/2022
Joan Kelly, 98, Home Office-CC, Corpus Christi, TX died 10/4/2022
Benjamin Mendoza, 97, Home Office-CC, Corpus Christi, TX died 9/29/2022
Virginia
Everett Smith, 81, Roanoke Service Bldg., Roanoke, VA died 1/1/2023
Eddie Brown, 67, Roanoke Main Office, Roanoke, VA died 12/25/2022
Nancy Riddle, 80, Glen Lyn Plant, Glen Lyn, VA died 12/24/2022
Harold Johnson, 88, Clinch River Plant, Cleveland, VA died 12/18/2022
Eric Gentzik, 44, Roanoke Main Office, Roanoke, VA died 12/9/2022
Linda Smith, 68, Roanoke Main Office, Roanoke, VA died 12/4/2022
Sidney McCoy, 65, Clinch River Plant, Cleveland, VA died 11/11/2022
Jerry Joyce, 75, Pulaski Svc Center, Pulaski, VA died 11/1/2022
Douglas Forbes, 87, Roanoke Main Office, Roanoke, VA died 10/26/2022
Claude Reynolds, 96, Roanoke Main Office, Roanoke, VA died 9/26/2022
Joseph Moore, 83, Glen Lyn/Pearisburg Svc Ctr, Glen Lyn, VA died 9/25/2022
West Virginia
Peter Carter, 77, Amos Plant, Winfield, WV died 1/11/2023
Lloyd Humphrey, 95, Beckley Service Center, Beckley, WV died 1/7/2023
Jeffrey Atkinson, 65, Sporn Plant, New Haven, WV died 1/1/2023
Rickie Charlton, 68, Amos Plant, Winfield, WV died 12/30/2022
Marylou Nicely, 101, River Trans Division, West Columbia, WV died 12/30/2022
Donald Hunnel, 89, Mountaineer Plant, New Haven, WV died 12/27/2022
Basil Keller, 69, Mountaineer Plant, New Haven, WV died 12/22/2022
Billy Canaday, 90, Beckley Service Center, Beckley, WV died 12/21/2022
Maxie Finnegan, 84, Huntington Svc Ctr, Huntington, WV died 12/16/2022
Charles Towner, 70, Pt Pleasant Ofc & Svc Ctr, Pt. Pleasant, WV died 12/11/2022
Charles Gray, 87, Sporn Plant, New Haven, WV died 12/2/2022
Richard Baumgardner, 93, Huntington Office, Huntington, WV died 11/27/2022
James Lilly, 80, River Trans Division, West Columbia, WV died 11/26/2022
John Caldwell, 63, Amos Plant, Winfield, WV died 11/26/2022
Thomas Metcalf, 81, Mountaineer Plant, New Haven, WV died 11/25/2022
James Huggins, 61, Wheeling Service Bldg, Wheeling, WV died 11/9/2022
Michael Turner, 76, Windsor Coal Mine, West Liberty, WV died 11/8/2022
Brian Hoffman, 40, Mountaineer Plant, New Haven, WV died 11/8/2022
Clyde Adkins, 73, Milton Ofc & Svc Ctr, Milton, WV died 11/4/2022
Dempsey Casto, 72, Amos Plant, Winfield, WV died 11/3/2022
Forrest Barnett, 71, Sporn Plant, New Haven, WV died 11/1/2022
Stuart Shinault, 77, Bluefield Wv Srv Ctr, Bluefield, WV died 10/30/2022
Harry Wilson, 79, Charleston Office, Charleston, WV died 10/25/2022
Nikki Hatfield, 74, River Trans Division, West Columbia, WV died 10/23/2022
Woodrow McClung, 92, Kanawha River Plant, Glasgow, WV died 10/15/2022
Gerald Patrick, 80, Kammer, Moundsville, WV died 10/9/2022
William Brown, 94, Sporn Plant, New Haven, WV died 10/6/2022
Larry King, 84, Huntington Svc Ctr, Huntington, WV died 10/3/2022
Brady Huffman, 85, Sporn Plant, New Haven, WV died 9/25/2022
Nancy Miller, 90, UNKNOWN LOCATION, died 12/29/2022
Arkansas
David Roberts retired 1/7/2023 from Turk Power Plant, Fulton, AR, after 37 years
Dale Patterson retired 1/10/2023 from Flint Creek Plant, Gentry, AR, after 39 years
Indiana
Reece Manning retired 10/1/2022 from Marion Svc Ctr-Bldg#1, Marion, IN, after 33 years
Timm Bilger retired 10/30/2022 from Spy Run Bldg. #3, Ft. Wayne, IN, after 43 years
Gary Pinkerton retired 11/1/2022 from Marion Svc Ctr-Bldg#1, Marion, IN, after 23 years
John Blake retired 12/1/2022 from Rockport Plant, Rockport, IN, after 43 years
Patricia Fasick retired 12/1/2022 from Ft Wayne One Summit Square, Ft. Wayne, IN, after 46 years
Edward Howaniec retired 1/10/2023 from Ft Wayne One Summit Square, Ft. Wayne, IN, after 44 years
Kentucky
Michael Fortner retired 11/4/2022 from Robert E Matthews Service Cent, Ashland, KY, after 36 years
Vickie Stone retired 12/1/2022 from Pikeville Transmission SC, Pikeville, KY, after 40 years
John Sode retired 12/28/2022 from Robert E Matthews Service Cent, Ashland, KY, after 42 years
James Holliday retired 12/31/2022 from Hazard Service Center, Hazard, KY, after 43 years
Diana Frasher retired 1/1/2023 from Big Sandy Plant, Louisa, KY, after 32 years
Kenneth Borders retired 1/4/2023 from Robert E Matthews Service Cent, Ashland, KY, after 42 years
Louisiana
Joe Moseley retired 10/1/2022 from Dolet Hills Lignite, Mansfield, LA, after 32 years
Henry Brown retired 10/4/2022 from Shreveport General Office, Shreveport, LA, after 47 years
Dalton Broadway retired 11/10/2022 from Dolet Hills Lignite, Mansfield, LA, after 22 years
Albert Smoak retired 12/31/2022 from Shreveport General Office, Shreveport, LA, after 38 years
Charles Dickens retired 1/4/2023 from Haughton Opns Center, Haughton, LA, after 37 years
Thomas Williams retired 1/7/2023 from Natchitoches Service Center, Natchitoches, LA, after 39 years
Michigan
Bryan Durham retired 11/9/2022 from Cook Material Center, Bridgman, MI, after 14 years
Steven Coffing retired 12/2/2022 from Cook Nuclear Plant, Bridgman, MI, after 38 years
Scott Hollingshead retired 12/9/2022 from Cook Nuclear Plant, Bridgman, MI, after 31 years
Randal Baggiani retired 12/16/2022 from Cook Nuclear Plant, Bridgman, MI, after 35 years
Timothy Walsh retired 1/13/2023 from Cook Nuclear Plant, Bridgman, MI, after 39 years
Ohio
John Bowman retired 10/1/2022 from Belmont Ofc & Svc Bldg, St. Clairsville, OH, after 41 years
Tracy Sterling retired 10/1/2022 from AEPOH 700 Bldg Gahanna, Gahanna, OH, after 36 years
Michael Serevicz retired 10/7/2022 from Steubenville Service Center, Steubenville, OH, after 41 years
Harold Fisher retired 10/8/2022 from AEP Headquarters, Columbus, OH, after 45 years
Christopher Huhn retired 10/15/2022 from AEP Headquarters, Columbus, OH, after 24 years
Rebecca Williams retired 10/15/2022 from AEP Headquarters, Columbus, OH, after 32 years
Randy Payne retired 10/15/2022 from Findlay Service Center, Findlay, OH, after 43 years
Franklin Pifer retired 10/22/2022 from AEP Headquarters, Columbus, OH, after 35 years
James Whalen retired 10/29/2022 from New Albany Transmission Op Ctr, New Albany, OH, after 21 years
Timothy Flaherty retired 11/2/2022 from Columbus Nw Svc Ctr, Dublin, OH, after 34 years
Michael Granata retired 11/19/2022 from AEP Headquarters, Columbus, OH, after 34 years
Annette Tierney retired 11/24/2022 from AEP Headquarters, Columbus, OH, after 43 years
Toni Brent retired 11/29/2022 from Zanesville Svc Ctr, Zanesville, OH, after 50 years
Roger Robinson retired 12/1/2022 from AEP Headquarters, Columbus, OH, after 43 years
Charles Vest retired 12/1/2022 from AEP Headquarters, Columbus, OH, after 43 years
Anthony Smith retired 12/1/2022 from Transmission Ops Center, New Albany, OH, after 49 years
Michael Piper retired 12/1/2022 from Kenton Service Center, Kenton, OH, after 34 years
Ronnie Headley retired 12/1/2022 from Wooster Service Bldg, Wooster, OH, after 31 years
Frank Cocchiarale retired 12/1/2022 from New Albany Transmission Op Ctr, New Albany, OH, after 38 years
Christopher Moeglin retired 12/1/2022 from Canton Transmission SC, Canton, OH, after 43 years
Tara Beske retired 12/2/2022 from AEP Headquarters, Columbus, OH, after 22 years
Paul Richardson retired 12/14/2022 from Steubenville Service Center, Steubenville, OH, after 38 years
Stanley Bundy retired 12/31/2022 from AEP Headquarters, Columbus, OH, after 28 years
Virginia Harper retired 12/31/2022 from AEP Headquarters, Columbus, OH, after 42 years
James Brown retired 12/31/2022 from AEP Headquarters, Columbus, OH, after 22 years
Frank Dutton retired 12/31/2022 from AEP Energy Contact Center, Columbus, OH, after 23 years
Francesco Caltieri retired 1/3/2023 from New Albany Transmission Op Ctr, New Albany, OH, after 32 years
Linda Jeffery retired 1/7/2023 from AEP Headquarters, Columbus, OH, after 31 years
Randy Ryan retired 1/7/2023 from AEP Headquarters, Columbus, OH, after 20 years
David Thompson retired 1/7/2023 from Fostoria Service Center, Fostoria, OH, after 42 years
Regina Walker retired 1/14/2023 from AEP Headquarters, Columbus, OH, after 22 years
Robert Merrill retired 1/15/2023 from Columbus SE Service Center, Columbus, OH, after 46 years
Brent Koenig retired 1/20/2023 from Lucasville Service Center, Lucasville, OH, after 37 years
Gary Zych retired 1/21/2023 from AEP Headquarters, Columbus, OH, after 34 years
Oklahoma
Richard Davis retired 10/11/2022 from Tulsa General Office, Tulsa, OK, after 39 years
Paul Avanessian retired 12/31/2022 from Tulsa Transmission Office & SC, Tulsa, OK, after 39 years
Lionel Kemp retired 1/5/2023 from Alsuma Meter & Substation, Tulsa, OK, after 41 years
Scott Wilkinson retired 1/6/2023 from Energy Control Center, Tulsa, OK, after 42 years
Anthony Gulley retired 1/14/2023 from Catoosa Hub, Tulsa, OK, after 37 years
Tennessee
William Watson retired 10/1/2022 from Home Worksite-Tennessee, , TN, after 20 years
Paul Jones retired 10/15/2022 from Kingsport Service Ctr, Kingsport, TN, after 37 years
Texas
Floria Gaines retired 10/1/2022 from Renaissance Tower, Dallas, TX, after 15 years
Jimmy Holland retired 11/1/2022 from Wilkes Plant, Avinger, TX, after 30 years
Bobby Walker retired 11/17/2022 from Abilene Fleet Department, Abilene, TX, after 17 years
Michael Nikolauk retired 11/26/2022 from San Angelo SC, San Angelo, TX, after 42 years
James Barlow retired 12/8/2022 from Longview Service Center, Longview, TX, after 34 years
Louis Gonzales retired 12/16/2022 from Electric System Ops, Corpus Christi, TX, after 29 years
Daniel Fabela retired 12/23/2022 from Home Office-CC, Corpus Christi, TX, after 41 years
Paul Kouma retired 12/27/2022 from Knox Lee Plant, Longview, TX, after 41 years
Artis Karnei retired 12/30/2022 from Corpus Christi Service Center, Corpus Christi, TX, after 43 years
Leland Bolen retired 12/31/2022 from Iraan, Iraan, TX, after 24 years
Frank Espinoza retired 12/31/2022 from Home Office-CC, Corpus Christi, TX, after 39 years
Sara McDonald retired 12/31/2022 from San Angelo SC, San Angelo, TX, after 47 years
Raymond Sewell retired 12/31/2022 from San Angelo Transmission SC, San Angelo, TX, after 43 years
Terry Hallonquist retired 1/1/2023 from Knox Lee Plant, Longview, TX, after 32 years
Gregory Richter retired 1/7/2023 from Victoria Service Center, Victoria, TX, after 37 years
Kenneth Jackson retired 1/7/2023 from Longview Service Center, Longview, TX, after 41 years
Timothy Skinner retired 1/7/2023 from Longview Service Center, Longview, TX, after 39 years
Glenn Menzel retired 1/18/2023 from Welsh Plant, Pittsburg, TX, after 17 years
Virginia
Vernon Crouch retired 10/1/2022 from Pulaski Svc Center, Pulaski, VA, after 42 years
Richard Harvey retired 10/1/2022 from Bluefield Va Srv Ctr, Bluefield, VA, after 38 years
Homer Forren retired 10/18/2022 from Byllesby & Buck Hydro, Ivanhoe, VA, after 40 years
Michael Thornhill retired 11/3/2022 from Bluefield Va Srv Ctr, Bluefield, VA, after 35 years
Billy Martin retired 12/1/2022 from Rocky Mount Ofc & Svc Ctr, Rocky Mount, VA, after 35 years
Joe Carrasco retired 12/1/2022 from Roanoke Main Office, Roanoke, VA, after 43 years
Darren Simpkins retired 12/1/2022 from Roanoke Service Bldg., Roanoke, VA, after 43 years
Timothy Mays retired 12/1/2022 from John W. Vaughan Ctr Mtr/Str, Roanoke, VA, after 39 years
Kent Lambert retired 1/7/2023 from Lebanon Ofc & Svc Ctr, Lebanon, VA, after 43 years
Timothy Stamper retired 1/11/2023 from Lebanon Ofc & Svc Ctr, Lebanon, VA, after 18 years
West Virginia
Robert Fisher retired 10/1/2022 from Amos Plant, Winfield, WV, after 25 years
Glen McMillion retired 10/3/2022 from Kanawha River Plant, Glasgow, WV, after 38 years
Elwin Sharp retired 10/17/2022 from River Trans Division, West Columbia, WV, after 16 years
Mary Williamson retired 10/21/2022 from Bluefield Wv Srv Ctr, Bluefield, WV, after 37 years
David Flower retired 12/1/2022 from Ceredo Plant, Huntington, WV, after 21 years
Brett Watts retired 12/1/2022 from River Trans Division, West Columbia, WV, after 19 years
Stephen Bateman retired 12/1/2022 from River Trans Division, West Columbia, WV, after 46 years
Gregory Walburn retired 12/1/2022 from River Trans Division, West Columbia, WV, after 45 years
Rosemarie Fife retired 12/1/2022 from River Trans Division, West Columbia, WV, after 46 years
Larry Nelson retired 12/1/2022 from River Trans Division, West Columbia, WV, after 46 years
Ian Stanley retired 12/3/2022 from Milton Ofc & Svc Ctr, Milton, WV, after 35 years
Robert Fanning retired 12/22/2022 from Bluefield Wv Srv Ctr, Bluefield, WV, after 13 years
Amando Hernandez retired 12/31/2022 from N Charleston Svc Ctr, Charleston, WV, after 44 years
Nicholas Bostick retired 1/7/2023 from Pt Pleasant Ofc & Svc Ctr, Pt. Pleasant, WV, after 34 years
Larry Darnell retired 1/21/2023 from Beckley Service Center, Beckley, WV, after 43 years
It’s more than a new year at American Electric Power, it’s a new era.
Julie Sloat became American Electric Power’s 11th president in 2022, and today she is the 116-plus year old company’s seventh chief executive officer. CEO is a fairly new position to AEP (and its predecessor, American Gas & Electric), with Donald Cook the first to carry the title in 1961. Sloat is the first woman to lead AEP.
After AGE was incorporated on Dec. 20, 1906, several people shared leadership of the new company. Millard Humstone was elected president and Brigham Curtis was named chairman of the board. They held their respective positions on an interim basis for 25 days, then resigned. Permanent officers were elected Jan. 15, 1907.
From 1907 to 1910, AGE was led by the triumvirate of Henry Doherty, Sidney Mitchell and Richard Breed. Mitchell was in charge of financing, Doherty handled engineering and operations, and Breed was responsible for the company’s franchising.
Breed was president from 1910 to 1923, and chairman from 1923 to 1926.
In 1923, George Tidd took over as president until his tenure ended in 1947; he was chairman from 1947 to 1949.
Philip Sporn succeeded Tidd as president from 1947 to 1961.
Cook became president and chief executive officer of the company in 1961, retaining the position of president until 1972 (he was president and chairman from 1971 to 1972, and chairman only until 1976). George Patterson was president from 1972 to 1977.
W.S. “Pete” White Jr. served as chairman and CEO from 1976 to 1991; he continued as chairman until 1992. Richard Disbrow was elected president of the company in 1979; he was named president and CEO in 1991, and was named chairman and CEO in 1992.
Dr. Linn Draper, Jr., became president in 1992, and succeeded Disbrow as chairman and CEO in 1993, serving in all three positions until 2003. Michael Morris became chairman, president, and CEO on Jan. 1, 2004.
On Jan. 1, 2011, Nicholas Akins was elected president; he became chief executive officer on Nov. 12, 2011. He remains executive chairman of the board of directors.
Sources: And There Was Light: The Story of American Electric Power, Its First 85 Years — 1906-1991, by William W. Corbitt, 1991; American Electric Power: A Century of Firsts, by Luke Feck, 2006; AEP Now: [AEP History].
Photo caption: AEP’s top leadership over the years (top row, left to right): Richard Breed, George Tidd, Philip Sporn, Donald Cook; (second row, left to right): Pete White, Richard Disbrow, Linn Draper, Mike Morris; (bottom row, left to right): Nick Akins, Julie Sloat.
AEP Retirees & Alumni 