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Released October 06, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--American Electric Power Company Incorporated (NASDAQ:AEP) (AEP) (Columbus, Ohio) said Tuesday it plans to spend $40 billion on capital projects from 2023 through 2027, with $26 billion going toward its regulated transmission & distribution (T&D) business, and $9 billion for regulated renewable generation.
Click on the image at right to see AEP's five-year capital spending program.
The $40 billion in capital spend is up from $38 billion planned for the five years from 2022 to 2026, and almost double the $22 billion from 2013 to 2017.
In a press release accompanying AEP's 2022 Analyst Day event in New York City, President and Chief Financial Officer Julie Sloat said: "Nearly all of our capital will be allocated to our regulated businesses, and 90% of our future investment will focus on wires and renewables," adding, "This approach will enable us to enhance service for customers, advance the clean energy transition and take advantage of a robust pipeline of growth opportunities in the grid and renewable energy space. Our high-growth transmission business has a long runway of investment opportunities focused on improving system performance, increasing reliability and resiliency and enhancing market efficiency."
Speaking at the event, Nicholas Akins, AEP chairman and chief executive officer, noted: "You can't do the renewables buildout that this country is talking about doing without transmission." Akins announced AEP is moving up its net-zero goal by five years to 2045. "The public policy discussions continue to support the movement to a clean energy economy," he said.
Industrial Info is tracking more than 300 active AEP projects valued at around $6.6 billion. AEP's operating units can generate about 31,000 megawatts (MW) of electricity and serve about 5.5 million customers across 11 states. Those operating units also feature 40,000 miles of transmission line, which is the nation's largest electric transmission system, and more than 2,200 substations.
Antonio Smyth, senior vice president of grid solutions, said the company's T&D system is "critical," adding, "On average, we own a little more than 20% of the transmission systems in PJM, SPP [Southwest Power Pool] and ERCOT [the Electric Reliability Council of Texas], and these three regions combined serve about one-third of the total U.S. population." Texas and Ohio account for nearly half of the line miles in its system, he said.
Among AEP's T&D projects being tracked by Industrial Info are the Millbrook Park-South Point Project in Ohio. The project entails rebuilding four lines: 4 miles from the Millbrook Park Substation to the Dogwood Ridge Substation; 3 miles from the Dogwood Ridge Substation to the East Wheelersburg Substation; 88 miles from the East Wheelersburg Substation to the South Point Substation; and 3.8 miles from the South Point Substation to the North Portsmouth Substation. The project also involves an equipment upgrade at South Point. Construction of all components is expected to kick off in mid-2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for related project reports.
In Texas, the Corpus Christi North Shore Transmission Improvement Project entails performing two substation upgrades; upgrading one transmission line; and building two new substations and transmission lines, respectively. The new components include 19 miles of single circuit, 345-kilovolt (kV) transmission line from the planned Naismith Substation to the planned Angstrom Substation and 17 miles from Angstrom to the planned Grissom Substation. Construction of all components is expected to kick off in mid-2023. Click here for related project reports.
Regarding renewable generation, AEP plans to boost its capacity from hydro, wind, solar and pumped storage in 2030 to 53%, up from 23% in 2022, and reduce coal's generation capacity from 41% in 2022 to 19% in 2030.
Smyth said AEP has filed six integrated resource plans over the past nine months in its vertically integrated states, which "serve as the blueprint for which we'll develop and acquire new generation resources in the future." The company plans to add about 17 GW of new renewables in its regulated states by 2032.
Through its subsidiary Public Service Company of Oklahoma, AEP is exploring a $50 million solar power plant near the Fort Sill U.S. Army base in Lawton, Oklahoma, which would generate 14 MW from photovoltaic (PV) panels. The project is in the late engineering stage, and the construction kickoff is expected in April 2023. Click here for the project report.
AEP, through its Appalachian Power subsidiary, is planning to build the $187 million Firefly PV Solar Plant in Chatham, Virginia, which would generate 150 MW. Construction is expected to begin in September 2023, with completion in 2025. Click here for the project report.
Company leadership did not mention AEP's environmental remediation and environmental upgrade projects, which are some of the largest capital projects facing the company. Industrial Info is tracking more than $1 billion worth of AEP projects related to ash pond closures.
Brock Ramey, Industrial Info's North American power specialist, commented to IIR earlier this year that "the company's heavy historic reliance on coal-fired power plants means they have significant legacy environmental cleanup costs, mainly centered on closing coal ash ponds and upgrading coal-ash handling facilities pursuant to the Coal Combustion Residuals (CCR) rule enacted in 2015 by the U.S. Environmental Protection Agency."
In company transaction news, AEP expects to complete the sale of its Kentucky Power utility and its transmission assets in the state to Liberty Utilities (Ontario, Canada) in January 2023. Liberty is a unit of Algonquin Power & Utilities Corporation (NYSE:AQN) (Oakville, Ontario). Meanwhile, AEP expects to close the sale of its contracted, unregulated renewable-energy assets in second-quarter 2023.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports on active projects from AEP and its utility units.
Duke Energy Corporation (NYSE:DUK), another major U.S. utility, recently announced it plans to invest $145 billion over the next 10 years, including $40 billion for its T&D infrastructure and $12.4 billion for zero-carbon generation sources such as solar, wind and nuclear. For more information, see Industrial Info's October 5, 2022, article - Duke Pours $145 Billion into 10-Year Plan for T&D, Renewables.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Click on the image at right to see AEP's five-year capital spending program.The $40 billion in capital spend is up from $38 billion planned for the five years from 2022 to 2026, and almost double the $22 billion from 2013 to 2017.
In a press release accompanying AEP's 2022 Analyst Day event in New York City, President and Chief Financial Officer Julie Sloat said: "Nearly all of our capital will be allocated to our regulated businesses, and 90% of our future investment will focus on wires and renewables," adding, "This approach will enable us to enhance service for customers, advance the clean energy transition and take advantage of a robust pipeline of growth opportunities in the grid and renewable energy space. Our high-growth transmission business has a long runway of investment opportunities focused on improving system performance, increasing reliability and resiliency and enhancing market efficiency."
Speaking at the event, Nicholas Akins, AEP chairman and chief executive officer, noted: "You can't do the renewables buildout that this country is talking about doing without transmission." Akins announced AEP is moving up its net-zero goal by five years to 2045. "The public policy discussions continue to support the movement to a clean energy economy," he said.
Industrial Info is tracking more than 300 active AEP projects valued at around $6.6 billion. AEP's operating units can generate about 31,000 megawatts (MW) of electricity and serve about 5.5 million customers across 11 states. Those operating units also feature 40,000 miles of transmission line, which is the nation's largest electric transmission system, and more than 2,200 substations.
Antonio Smyth, senior vice president of grid solutions, said the company's T&D system is "critical," adding, "On average, we own a little more than 20% of the transmission systems in PJM, SPP [Southwest Power Pool] and ERCOT [the Electric Reliability Council of Texas], and these three regions combined serve about one-third of the total U.S. population." Texas and Ohio account for nearly half of the line miles in its system, he said.
Among AEP's T&D projects being tracked by Industrial Info are the Millbrook Park-South Point Project in Ohio. The project entails rebuilding four lines: 4 miles from the Millbrook Park Substation to the Dogwood Ridge Substation; 3 miles from the Dogwood Ridge Substation to the East Wheelersburg Substation; 88 miles from the East Wheelersburg Substation to the South Point Substation; and 3.8 miles from the South Point Substation to the North Portsmouth Substation. The project also involves an equipment upgrade at South Point. Construction of all components is expected to kick off in mid-2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for related project reports.
In Texas, the Corpus Christi North Shore Transmission Improvement Project entails performing two substation upgrades; upgrading one transmission line; and building two new substations and transmission lines, respectively. The new components include 19 miles of single circuit, 345-kilovolt (kV) transmission line from the planned Naismith Substation to the planned Angstrom Substation and 17 miles from Angstrom to the planned Grissom Substation. Construction of all components is expected to kick off in mid-2023. Click here for related project reports.
Regarding renewable generation, AEP plans to boost its capacity from hydro, wind, solar and pumped storage in 2030 to 53%, up from 23% in 2022, and reduce coal's generation capacity from 41% in 2022 to 19% in 2030.
Smyth said AEP has filed six integrated resource plans over the past nine months in its vertically integrated states, which "serve as the blueprint for which we'll develop and acquire new generation resources in the future." The company plans to add about 17 GW of new renewables in its regulated states by 2032.
Through its subsidiary Public Service Company of Oklahoma, AEP is exploring a $50 million solar power plant near the Fort Sill U.S. Army base in Lawton, Oklahoma, which would generate 14 MW from photovoltaic (PV) panels. The project is in the late engineering stage, and the construction kickoff is expected in April 2023. Click here for the project report.
AEP, through its Appalachian Power subsidiary, is planning to build the $187 million Firefly PV Solar Plant in Chatham, Virginia, which would generate 150 MW. Construction is expected to begin in September 2023, with completion in 2025. Click here for the project report.
Company leadership did not mention AEP's environmental remediation and environmental upgrade projects, which are some of the largest capital projects facing the company. Industrial Info is tracking more than $1 billion worth of AEP projects related to ash pond closures.
Brock Ramey, Industrial Info's North American power specialist, commented to IIR earlier this year that "the company's heavy historic reliance on coal-fired power plants means they have significant legacy environmental cleanup costs, mainly centered on closing coal ash ponds and upgrading coal-ash handling facilities pursuant to the Coal Combustion Residuals (CCR) rule enacted in 2015 by the U.S. Environmental Protection Agency."
In company transaction news, AEP expects to complete the sale of its Kentucky Power utility and its transmission assets in the state to Liberty Utilities (Ontario, Canada) in January 2023. Liberty is a unit of Algonquin Power & Utilities Corporation (NYSE:AQN) (Oakville, Ontario). Meanwhile, AEP expects to close the sale of its contracted, unregulated renewable-energy assets in second-quarter 2023.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports on active projects from AEP and its utility units.
Duke Energy Corporation (NYSE:DUK), another major U.S. utility, recently announced it plans to invest $145 billion over the next 10 years, including $40 billion for its T&D infrastructure and $12.4 billion for zero-carbon generation sources such as solar, wind and nuclear. For more information, see Industrial Info's October 5, 2022, article - Duke Pours $145 Billion into 10-Year Plan for T&D, Renewables.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
