American Electric Power to invest $17 billion in grid upgrades
American Electric Power (AEP) plans to invest $17.3 billion in capital over the next three years to create a smarter energy grid, AEP Chair, President and CEO Nicholas K. Akins told shareholders at the company’s annual meeting in Charlestown, West Virginia.
The investments will include $13 billion for AEP’s transmission and distribution systems as well as $1.5 billion for new renewable energy.
“We are making investments to create a smarter, more resilient and efficient grid that supports the integration of new technologies and cleaner resources to meet the energy needs of our customers,” Akins said.
AEP delivered a total shareholder return of approximately 12 percent in 2016 and boosted its quarterly dividend by 5.4 percent. The company’s transmission business contributed 54 cents per share to earnings in 2016, a 38 percent increase from 2015.
“We are well-positioned as a premier regulated energy company that delivers strong financial results for our shareholders,” Akins said. “The investments we’re making in our core regulated businesses, along with our proven track record of cost discipline, will support our operating earnings growth rate of 5 percent to 7 percent.”
Also during the meeting, Akins discussed AEP’s new logo and brand identity that the company revealed in March, and AEP shareholders elected 12 directors to the board.
