COLUMBUS, Ohio, July 22, 2021 – American Electric Power (Nasdaq: AEP) today reported second-quarter 2021 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $578 million or $1.16 per share, compared with GAAP earnings of $521 or $1.05 per share in second-quarter 2020. Operating earnings for second-quarter 2021 were $590 million or $1.18 per share, compared with operating earnings of $534 million or $1.08 per share in second-quarter 2020.
Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items. The difference between 2021 GAAP earnings and operating earnings for the quarter was due to recent changes in state tax legislation and the mark-to-market impact of economic hedging activities.
A full reconciliation of GAAP earnings to operating earnings for the quarter is included in the tables at the end of this news release.
“The investments we are making in a cleaner, more efficient and resilient energy system to serve our customers continue to drive our strong earnings results. Our Transmission Holding Co. contributed 34 cents per share in the second quarter, up 15 cents from the same period last year. Net plant for the Transmission Holding Co. business increased $1.4 billion, or 13 percent since June 2020,” said Nicholas K. Akins, AEP chairman, president and chief executive officer.
“In addition to investments in the grid, we are advancing our plan to transition AEP’s generation capacity to approximately 50 percent renewables by 2030. We recently issued requests for proposals (RFP) for large-scale renewable energy resources to serve our Appalachian Power and Southwestern Electric Power Company customers. We also plan to issue an RFP in October 2021 for Public Service Company of Oklahoma’s resource needs as we work to bring up to 16,600 megawatts of new, clean energy online for our customers this decade.
“We are seeing positive signs of economic improvement as the nation recovers from the pandemic. Commercial and industrial sales have bounced back throughout our service territory across nearly all sectors. Residential sales are down compared with the second quarter last year as many customers we serve are now returning to the workplace.
“Our operations and maintenance expenses increased year over year, reflecting reduced O&M spending in the second quarter of 2020 largely in response to the pandemic. We continue to focus on containing costs and have a solid track record of controlling expenses while making needed investments on behalf of our customers,” Akins said.