AEP Well-Positioned For Continued Earnings Growth, Shareholders Learn At
Company's Annual Meeting
COLUMBUS, Ohio, April 23, 2013
COLUMBUS, Ohio, April 23, 2013 /PRNewswire/ -- American Electric Power (NYSE:
AEP) continues to deliver shareholder value and is well-positioned to support
an earnings growth rate of 4 percent to 6 percent, according to Nicholas K.
Akins, AEP's president and chief executive officer. Akins addressed
shareholders at the company's annual meeting today in Columbus, Ohio.
Akins announced that AEP's Board of Directors declared the company's 412^th
consecutive quarterly common stock dividend and increased the dividend by two
cents per quarter to 49 cents per share. This represents a 4.3 percent
increase in the dividend from the previous 47 cents per share. AEP has paid a
cash dividend on its common stock every quarter since July 1910.
"The recent performance of our stock, coupled with an increase in our dividend
and the target we announced in February to increase our dividend payout ratio,
demonstrate our commitment to ensuring that AEP remains a solid investment for
our shareholders," Akins said. "We have continued to achieve strong financial
results by controlling costs and executing on our strategy to successfully
manage the rate recovery process in our regulated states and invest in
opportunities for growth including our transmission and competitive
AEP will increase its capital investments to approximately $3.6 billion in
2013, from $3.1 billion in 2012, as the company continues to invest in the
development and operation of transmission assets and transitions its
generating fleet to comply with new environmental regulations and further
diversify its fuel mix.
In 2012, AEP brought nearly 1,200 megawatts of new, efficient generation on
line, including a combined-cycle natural gas plant in Dresden, Ohio, and the
John W. Turk Jr. Power Plant in Arkansas, which is the first coal-fueled power
plant in the United States to use advanced ultra-supercritical technology.
"The Turk Plant is exceeding our expectations for operational performance. The
plant's heat rate is more than 10 percent better than traditional
supercritical coal units, which means it uses less fuel and creates fewer
emissions to generate the same amount of power. AEP is proud to have pioneered
this technology for the benefit of our customers, the economy and the
environment," Akins said.
Akins pointed to the resolved regulatory uncertainty in Ohio and the fact that
AEP is moving forward with the separation of its generation assets from its
wires business to support a fully competitive electricity market in Ohio.
"After the transition to full competition in Ohio is completed in 2015, about
86 percent of AEP's assets will remain regulated and will support our goal of
achieving earnings-per-share growth of 4 to 6 percent," Akins said. "We have a
solid foundation for success in competitive retail markets following our 2012
acquisition of BlueStar Energy Solutions, which now operates as AEP Energy."
In business items at the annual shareholders meeting, AEP shareholders elected
14 directors. Directors re-elected to the board are: Nicholas K. Akins, 52, of
Dublin, Ohio; David J. Anderson, 63, of Morristown, N.J.; Ralph D. Crosby Jr.,
65, of McLean, Va.; Linda A. Goodspeed, 51, of Memphis, Tenn.; Thomas E.
Hoaglin, 63, of Columbus, Ohio; Sandra Beach Lin, 55, of Flower Mound, Texas;
Michael G. Morris, 66, of Northville, Mich.; Richard C. Notebaert, 66, of
Chicago; Lionel L. Nowell III, 58, of Cos Cob, Conn.; Stephen S. Rasmussen,
60, of Columbus, Ohio; Oliver G. Richard III, 60, Lake Charles, La.; Richard
L. Sandor, 71, of Chicago; Sara Martinez Tucker, 58, of San Francisco; and
John F. Turner, 71, of Moose, Wyo.
Approximately 95 percent of shares voted indicated support for AEP's executive
officer compensation program.
Approximately 98 percent of shares voted ratified the firm of Deloitte &
Touche LLP as AEP's independent public accounting firm for 2013.
Only 11 percent of shares voted in favor of a shareholder proposal that would
require additional disclosure of AEP's lobbying expenditures. The proposal
American Electric Power is one of the largest electric utilities in the United
States, delivering electricity to more than 5.3 million customers in 11
states. AEP ranks among the nation's largest generators of electricity, owning
nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the
nation's largest electricity transmission system, a 40,000-mile network that
includes more 765-kilovolt extra-high voltage transmission lines than all
other U.S. transmission systems combined. AEP's transmission system directly
or indirectly serves about 10 percent of the electricity demand in the Eastern
Interconnection, the interconnected transmission system that covers 38 eastern
and central U.S. states and eastern Canada, and approximately 11 percent of
the electricity demand in ERCOT, the transmission system that covers much of
Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana
Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and
Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas).
AEP's headquarters are in Columbus, Ohio.
SOURCE American Electric Power
Contact: MEDIA: Tammy Ridout, Corporate Media Relations, 614/716-2347,
ANALYSTS: Bette Jo Rozsa, Managing Director, Investor Relations, 614/716-2840
Press spacebar to pause and continue. Press esc to stop.