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American Electric Power (AEP)

American Electric Power Company, Inc. (AEP) is a publicly listed electric utility headquartered in Ohio, USA. In 2019, its revenue was US$15.56 billion and installed capacity was around 22 GW. It operates in 11 states in the USA, employing approximately 18,000 people and serving 5.5 million customers. The company represents the broad trends observed across the US-based companies assessed, appearing to lack commitment to a world beyond coal and gas.

Ranking position
#20/50
Performance score
10.0 /20
Narrative Score
D
Trend Score
  • Trend line is up
  • Trend line is equal
  • Trend line is down
Performance module name Performance module score Rank (0-50)

Targets

2.1 / 4.0 #15

Material Investment

4.7 / 7.0 #7

Intangible Investment

0.0 / 2.0 #19

Management

1.7 / 4.0 #22

Policy Engagement

0.5 / 1.0 #24

Business Model

1.0 / 2.0 #29
Total 10.0 / 20 #20

Leading practice

No leading practices were identified for this company.

Risks and opportunities

Trend

AEP is awarded a trend score of -. If the company were reassessed in the near future, its score would likely worsen. Renewables are expected to grow significantly as a proportion of AEP’s portfolio, but it is not clear to what extent these will replace thermal capacity or are aimed at delivering overall growth. The company has almost achieved its 2030 target and has a history of setting what appear to be easily achievable targets. This lack of an ambitious target for 2030 suggests that AEP will fail to deliver the necessary reductions in emissions to achieve its well-below 2-degree pathway for emissions intensity. In short, AEP’s business model will likely stay roughly the same but with extra renewables.

Progress towards the Paris Agreement

More about the company

Headquarters
Columbus, Ohio, USA
Ownership structure
Publicly listed
Group revenue
US$15.56 billion (2019)
Installed capacity
22 GW (2019)
Website
https://www.aep.com/