AEP Investing in Regulated Businesses to Build Energy System of the Future, Shareholders Learn at Company’s Annual Meeting

Nick Akins, AEP chairman, president and chief executive officer, addresses shareholders and guests at the 2018 annual meeting in Columbus. Photo by Sophia Garcia.

AEP is investing in its core regulated businesses to improve service to customers and advance new energy technologies, according to Nick Akins, AEP chairman, president and chief executive officer. Akins addressed shareholders at the company’s annual meeting today in Columbus, Ohio.

“AEP is positioned as a premier regulated energy company, with nearly all of our forecasted earnings coming from our regulated businesses,” Akins said. “Our 17,600 employees are focused on providing innovative energy solutions to our customers, integrating new technologies and building a smarter, cleaner and more resilient energy system.

“We plan to invest $17.7 billion in capital over the next three years – including $12.8 billion in our transmission and distribution systems and $1.7 billion in renewable energy – as we work to develop the energy system of the future and meet the changing energy needs and expectations of our customers. These investments will continue to support our operating earnings growth rate of 5 percent to 7 percent,” Akins said.

AEP’s forecasted $1.7 billion renewable energy investment between 2018 and 2020 does not include the company’s 2,000-megawatt Wind Catcher project, which will bring clean energy and lower bills for customers in Arkansas, Louisiana, Oklahoma and Texas if approved by regulators in those states.

AEP delivered a total shareholder return of 20.9 percent in 2017 and increased its quarterly dividend by 5.1 percent to 62 cents per share. The company’s transmission business contributed 72 cents per share to earnings in 2017, up 33 percent from 2016.

In business items at the annual shareholders meeting, AEP shareholders elected 12 directors. Directors re-elected to the board are: Nicholas K. Akins, 57, of New Albany, Ohio; David J. Anderson, 68, of Greenwich, Conn.; J. Barnie Beasley Jr., 66, of Sylvania, Ga.; Ralph D. Crosby Jr., 70, of McLean, Va.; Linda A. Goodspeed, 56, of Marco Island, Fla.; Thomas E. Hoaglin, 68, of Columbus, Ohio; Sandra Beach Lin, 60, of Flower Mound, Texas; Richard C. Notebaert, 70, of Naples, Fla.; Lionel L. Nowell III, 63, of Marco Island, Fla.; Stephen S. Rasmussen, 65, of Columbus, Ohio; Oliver G. Richard III, 65, of Lake Charles, La.; and Sara Martinez Tucker, 62, of Dallas.

Approximately 99 percent of shares voted ratified the firm of PricewaterhouseCoopers LLP as AEP’s independent public accounting firm for 2018.

Approximately 94 percent of shares voted indicated support for AEP’s executive officer compensation program.