Q2 2026 American Electric Power Co Inc Earnings Call

I would like to welcome everyone to the American Electric Power second quarter 2026 earnings call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time simply Press Start followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again, thank you. I would now like to turn the call over to Andy gurgle vice president of investor relations. You may go ahead.

Good morning and welcome to American electric powers second quarter 2026 earnings call.

A live webcast of this talk conference, and slide presentation are available on our website under the events and presentation section.

Joining me today are Bill Furman, chairman president and chief executive officer and Trevor mihalik Chief Financial Officer.

In addition, we have other members of our management team in the room, including Kate Dixon, senior vice, president controller and chief accounting officer.

And Darcy Reese, vice president, investor relations.

Speaker #2: webcast of this teleconference and slide the Events and Presentations section. Joining me today are Bill Ferman, Chairman, President, and Chief Executive Officer; and Trevor Mihalik, Chief Financial Officer. of our management team in the room, including Kate Dixon, Senior Vice President, Controller and Chief Accounting Officer; and Darcy Reese, Vice President, Investor Relations.

we will be making forward-looking statements during the call actual results May differ materially from those projected and any forward-looking statement we make today

Factors that could cause our actual results to differ materially are discussed in the company's most recent SEC filings.

Please refer to the presentation slides, that accompany this call for reconciliation to gaap measures.

We will take your questions following opening remarks, please start on slides, 4 and 5. As I hand the call over to Bill

Good morning and thank you for joining us for our second quarter 2026 earnings call.

As we close out the first half of 2026 and my first 2 years at AEP, I'm very pleased with the progress we've made and the positive momentum, we continue to build the business.

Speaker #2: measures. opening remarks. Please start on slides We will take your questions following 4 and 5 as I hand the call over to Bill.

Speaker #3: Good morning, and thank you for joining us for our Q2 2026 earnings call. As we close out the first half of 2026, in my first two years at AEP, I'm very pleased with the progress we've made and the positive momentum we continue to build across the business.

4, main themes are key to this progress. As shown on slide 7. Enhancing our financial performance, driving affordability. Capturing significant growth across our portfolio and improving Regulatory and operational, outcomes. We are executing an exceptionally well across each of these areas strengthening. Our platform for outside growth and long-term shareholder value creation.

Turning to slide 8, I will start with our focus on enhancing aep's financial performance.

Speaker #3: Four main themes are key to this progress, as shown on slide 7. Enhancing our financial performance, driving affordability, capturing significant growth across our portfolio, and improving regulatory and operational outcomes.

We delivered, operating earnings of $1.36 per share or 742 million for the second quarter.

Speaker #3: We are executing exceptionally well across each of these areas, strengthening our platform for outsized growth and long-term shareholder value creation. Turning to slide 8, I will start with our focus on enhancing AEP's financial performance.

Speaker #3: We delivered operating earnings of $1.36 per share, or $742 million, for the Q2. While I recognize our operating earnings are below last year at this stage, due to the 2025 transmission minority interest sell, and timing-related tax items, I am highly confident in our business performance, so much so that we are raising our 2026 full-year guidance to a range of $6.25 to $6.55 per share.

While I recognize our operating earnings are below last year at this stage due to the 2025 transmission, minority interest cell and timing related tax items. I am highly confident in our business performance so much so that we are raising our 2026 full year. Guidance to a range of 6.25 to 655 cents per share from our previous range of 6.15 to 6.45 cents per share.

I also remain committed to supporting strong investment, grade credit metrics, including our targeted ffo to debt ratio of 14% to 15% as we move through this, incredible period of growth. That's expected to last well into the next decade.

Trevor will go into more detail around the financial performance later on in the call.

Speaker #3: From our previous range of $6.15 to $6.45 per share. I also remain committed to supporting strong investment-grade credit metrics, including our targeted FFO-to-debt ratio of 14% to 15%, as we move through this incredible period of growth that's expected to last well into the next decade.

AEP size, scale and attractive Geographic footprint. Continue to provide differential advantages. As we drive, affordability all while executing on our robust growth strategy.

As 1 of the largest utility holding companies in the country we benefit from economies of scale that enhance our ability to procure build operate and finance, infrastructure in a highly efficient way.

Speaker #3: Trevor will go into more detail around the financial performance later on in the call. AEP's size, scale, and attractive geographic footprint continue to provide differential advantages as we drive affordability, all while executing on our robust growth strategy.

Combined with the tremendous strides, we have made improving regulatory outcomes and cost recovery mechanisms. These advantages, helped us deliver safe reliable, and affordable Energy service for customers while generating increasing value for our shareholders.

Speaker #3: As one of the largest utility holding companies in the country, we benefit from economies of scale that enhance our ability to procure, build, operate, and finance infrastructure in a highly efficient way.

Over the past 2 years, we have seen significant customer demand across our footprint and aep's. Focus on execution positions us to be 1 of the best to capture that growth.

Speaker #3: Combined with the tremendous strides we have made improving regulatory outcomes and cost recovery mechanisms, these advantages help us deliver safe, reliable, and affordable energy service for customers while generating increasing value for our shareholders.

Just during the second quarter, a contracted and additional 6 gigawatts of load.

Primarily driven by fully executed loas in Texas.

Speaker #3: Over the past two years, we have seen significant customer demand across our footprint, and AEP's focus on execution positions us to be one of the best to capture that growth.

Trevor will also provide more details on our incremental, large load pipeline later on in the call. But to be clear, our future is extremely bright as a pertains to growth exceptional counterparties. And Incredibly supportive, strategic Partnerships that will allow us to deliver for our customers and our shareholders.

Speaker #3: Just during the Q2, AEP contracted an additional 6 gigawatts of load, primarily driven by fully executed LOAs in Texas. Trevor will also provide more details on our incremental large-load pipeline later on in the call, but to be clear, our future is extremely bright as it pertains to growth, exceptional counterparties, and incredibly supportive strategic partnerships that will allow us to deliver for our customers and our shareholders.

As shared on our first quarter, call aep's 5-year Capital plan from 2026 through 2030 at 78 billion, which is expected to result in nearly 11% rate-based. Kegger,

This significant step change underscores the portfolio and differentiated organic growth seen across our expansive footprint.

Speaker #3: As shared on our Q1 call, AEP's 5-year capital plan from 2026 through 2030 is $78 billion, which is expected to result in nearly $11% rate-based CAGR.

In summary, we intend to deliver and our customers know it.

That is why we have such a significant backlog of growth, which creates long-term upside for AEP over the next decade.

Speaker #3: To put this growth into perspective, AEP's 5-year capital plan stood at just $38 billion only four years ago. This significant step change underscores the strength of our portfolio, and differentiated organic growth seen across our expansive footprint.

We also shared on the first quarter call that we have line of sight to over 10 billion dollars of incremental Investments.

That are not included in the 78 billion dollars, consisting of the fuel cells for the Wyoming project, the Pike and transmission opportunity and incremental power generation.

Speaker #3: In summary, we intend to deliver and our customers know it. That is why we have such a significant backlog of growth, which creates long-term upside for AEP over the next decade.

We continue to work with the hyperscaler on the Wyoming fuel cell initiative and remain. Highly optimistic about the Project's advancement

Speaker #3: We also shared on the Q1 call that we have line-of-sight to over $10 billion of incremental investments, that are not included in the $78 billion.

Based on a contractual June 30th deadline, we reached an amendment to the agreement with the off taker, which modified some key protection terms. So that AEP is adequately compensated for their requested timing accommodations.

Speaker #3: Consisting of the fuel cells for the Wyoming project, the Piketon Transmission Opportunity, and incremental power generation. We continue to work with the hyperscaler on the Wyoming fuel cell initiative, and remain highly optimistic about the project's advancement.

Speaker #3: Based on a contractual June 30 deadline, we reached an amendment to the agreement with the offtaker, which modified some key protection terms so that AEP is adequately compensated for their requested timing accommodations.

Under the original, December 2026 Milestone which remains intact. The hyperscaler has the ability to choose to deploy the fuel cells at an alternate location. If the Cheyenne Wyoming site does not Advance if the December 2026, Milestone is not met or if there are additional requests to change the agreement, terms AEP retains Financial protections for our shareholders.

Speaker #3: Under the original December 2026 milestone, which remains intact, the hyperscaler has the ability to choose to deploy the fuel cells at an alternate location if the Cheyenne Wyoming site does not advance.

Separately. We continue to advance the Pike and transmission opportunity in Ohio in our working towards definitive agreements with the prospective op taker, SP energy.

Following execution of definitive agreements, the projects would proceed through the required regulatory review and approval process.

Speaker #3: If the December 2026 milestone is not met, or if there are additional requests to change the agreement terms, AEP retains financial protections for our shareholders.

This project further highlights, the aep's transmission franchise. And in particular, our industry-leading expertise in developing and operating 765 KV transmission infrastructure.

Speaker #3: Separately, we continue to advance the Piketon Transmission Opportunity in Ohio in our working towards definitive agreements with the prospective offtaker SB Energy. Following execution of definitive agreements, the projects would proceed through the required regulatory review and approval process.

As we have discussed previously,

Speaker #3: This project further highlights the strength of AEP's transmission franchise and, in particular, our industry-leading expertise in developing and operating 765 kV transmission infrastructure. As we have discussed previously, AEP has taken a very proactive approach over the past two years to secure critical gas-fire turbine ine generators, leveraging our scale as one of the nation's largest owner-operators of electric generation, industry expertise, and longstanding supplier relationships.

AEP has taken a very proactive approach over the past 2 years, to secure critical gas fired, turbine. Generators leveraging, our scale is 1 of the nation's largest owner, operators of electric generation industry, expertise and long-standing supplier relationships.

Just over this past quarter, we have secured an additional 3, gigawatts of turbines. This increases our total secured turbine capacity to approximately 13, gigawatts for deployment through 2031.

These strategic procurements position us to meet the growing energy needs of our customers. While providing greater certainty around. Future resource deployment in the ap's footprint.

Speaker #3: Just over this past quarter, we have secured an additional 3 gigawatts of turbines. This increases our total secured turbine capacity to approximately 13 gigawatts for deployment through 2031.

When we introduce a new 5-year plan for 2027 through 2031. During our third quarter earnings call these generation Investments are expected to be an important driver of our long-term growth Outlook.

Speaker #3: These strategic procurements position us to meet the growing energy needs of our customers, while providing greater certainty around future resource deployment in AEP's footprint.

In addition, we are leveraging, our sizable Market position, and strategic manufacturer relationships to secure up to 10. Gigawatts of incremental turbine capacity through 2035.

Speaker #3: When we introduce a new 5-year plan for 2027 through 2031, during our Q3 earnings call, these generation investments are expected to be an important driver of our long-term growth outlook.

This level of access to critical equipment. Underscores a key competitive Advantage, for 8 and enhances our ability to support customer growth, strength and reliability, and create long-term value for shareholders.

Speaker #3: In addition, we are leveraging our sizable market position and strategic manufacturer relationships to secure up to 10 gigawatts of incremental turbine capacity through 2035.

Regarding nuclear, we continue to advance in early stage nuclear generation strategy.

Speaker #3: This level of access to critical equipment underscores a key competitive advantage for AEP, and enhances our ability to support customer growth, strengthen reliability, and create long-term value for shareholders.

This is being driven by demand from potential customers who value Alternative forms of long-term base load generation to support their rapidly, growing demand. While we want to be proactive and work with customers to jointly develop their projects on a fee-based Arrangement that limits risk for a, we will remain highly disciplined to ensure that we are protecting our existing customers shareholders and balance sheets.

Speaker #3: Regarding nuclear, we continue to advance in early-stage nuclear generation strategy. This is being driven by demand from potential customers who value alternative forms of long-term baseload generation to support their rapidly growing demand.

Speaker #3: While we want to be proactive and work with customers to jointly develop their projects on a fee-based arrangement that limits risk for AEP, we will remain highly disciplined to ensure that we are protecting our existing customers, shareholders, and balance sheet.

please turn to slide 9 affordable remains a core tenant of our customer strategy as new large load comes online and enables a shift to fixed costs currently borne by existing customers to new data centers and hyperscalers as we noted on our first quarter call in may we are projecting fixed cost offsets for residential customers of up to 16 billion dollars in our vertically, integrated utility

Speaker #3: Please turn to slide 9. Affordability remains a core tenet of our customer strategy, as new large load comes online, it enables a shift to fixed costs currently borne by existing customers to new data centers and hyperscalers.

As a result of new large load interconnections that are supported by fully executed, take or pay electric service agreements.

The benefits of this changing customer, mix are already being realized.

Together with our disciplined focused on operational, efficiency.

Speaker #3: As we noted on our Q1 call in May, we are projecting fixed-cost offsets for residential customers of up to $16 billion in our vertically integrated utilities, as a result of new large load interconnections that are supported by fully executed take-or-pay electric service agreements.

These offsets have supported planned base rate, reductions in select AEP operating companies. For example, an order has been received in Ohio and Indiana Michigan. Power plans to submit a base rate reduction, finally later this summer reinforcing our commitment to delivering safe, reliable, and affordable service while supporting economic growth.

Speaker #3: The benefits of this changing customer mix are already being realized. Together with our disciplined focus on operational efficiency, these offsets have supported planned base-rate reductions in select AEP operating companies.

We are also continuing to assess sources of lower cost Capital including federal grants and US Department of energy loan, guarantees to further Drive customer savings.

Speaker #3: For example, an order has been received in Ohio and Indiana-Michigan Power plans to submit a base-rate reduction filing later this summer. Reinforcing our commitment to delivering safe, reliable, and affordable service while supporting economic growth.

.3 billion.

Speaker #3: We are also continuing to access sources of lower-cost capital—including federal grants and U.S. Department of Energy loan guarantees—to further drive customer savings. Earlier this month, AEP Texas secured a DOE loan guarantee for up to $3.3 billion to finance a portfolio of transmission projects spanning approximately 2,800 miles.

To finance a portfolio of transmission. Projects spanning approximately 2,800 miles, which is expected to deliver an estimated 685 million in customer savings over the life of the loan through lower financing costs.

With this financing, AP has now secured approximately 5 billion dollars in doe loans across our portfolio.

Supporting an expected, 1 billion dollars in projected, customer savings.

Speaker #3: Which is expected to deliver an estimated $685 million in customer savings over the life of the loan through lower financing costs. With this financing, AEP has now secured approximately $5 billion in DOE loans across our portfolio.

This combined with almost 400 million in awarded doe, grants are expected to deliver nearly 1.4 billion dollars in. Estimated customer benefits over the life of the loans and grants.

Turning the slide 10, we continue to obtain constructive regulatory outcomes across our portfolio.

With notable progress achieved this past quarter which should improve cost recovery and our earned Roe's over time.

Speaker #3: Supporting an expected $1 billion in projected customer savings. This, combined with almost $400 million in awarded DOE grants, is expected to deliver nearly $1.4 billion in estimated customer benefits over the life of the loans and grants.

Speaker #3: Turning to slide 10, we continue to obtain constructive regulatory outcomes across our portfolio. With notable progress achieved this past quarter, which should improve cost recovery and our earned ROEs over time.

In Ohio, we secured commission, approval of the distribution, base case settlement, which includes an affordability, mejor featuring a base rate, decrease driven by the timing of regulatory, liabilities being passed back to customers AEP, Ohio also secured a 9.84%, roe up from 9.7%, this coupled with the forward-looking tester in the next rate case will improve cost recovery and their earned Roe.

Speaker #3: In Ohio, we secured commission approval of the distribution base case settlement, which includes an affordability measure featuring a base-rate decrease driven by the timing of regulatory liabilities being passed back to customers.

In Texas Swepco reached the base rate case settlement in principle with key stakeholders in late April.

Which positions us well to advance our growth plans and enhance safe, reliable and Affordable, Electric Service for customers.

Speaker #3: AEP Ohio also secured a $9.84% ROE, up from $9.7%. This, coupled with the forward-looking test year in the next rate case, will improve cost recovery and their earned ROE.

In Oklahoma, PSO filed, a base rate case settlement with several key interviewers while the proposed authorized Roe decreases slightly from 9.5% to 9.375%.

Speaker #3: In Texas, Swepco reached a base-rate case settlement in principle with key stakeholders in late April. Which positions us well to advance our growth plans and enhance safe, reliable, and affordable electric service for customers.

The settlement includes an enhanced transmission cost Rider, which we expect results in a meaningful Improvement in PSO earned Roe.

Speaker #3: In Oklahoma, PSO filed a base-rate case settlement with several key interveners. While the proposed authorized ROE decreases slightly from $9.5% to $9.375%, the settlement includes an enhanced transmission cost rider which we expect to result in a meaningful improvement in PSO's earned ROE.

PSO also received separate order in May a proving its request to procure 1.3. Gigawatts of generation resources supporting reliable and affordable service for our customers taken together. These outcomes support continued investment in Oklahoma, while keeping customer affordability, front and center.

Speaker #3: PSO also received a separate order in May approving its request to procure $1.3 gigawatts of generation resources, supporting reliable and affordable service for our customers.

In Virginia, we completed a 1.4 billion securitization in May enabling app code to file. Its lowest increase in a base rate request, in nearly 30 years. Driving further customer affordability measures

Speaker #3: Taken together, these outcomes support continued investment in Oklahoma while keeping customer-affordability front and center. In Virginia, we completed a $1.4 billion securitization in May, enabling APCO to file its lowest increase in a base-rate request in nearly 30 years.

additionally, in June, we received approval in Virginia, for our proposed, large low tariff, bringing the total number of approved terrorists across the portfolio to 5,

We have 3 additional filings, pending for proposed, large Lo tariffs, and our teams are working closely with key stakeholders to advance them through the approval process.

Speaker #3: Driving further customer-affordability measures. Additionally, in June, we received approval in Virginia for our proposed large load tariff, bringing the total number of approved tariffs across the portfolio to 5.

Collectively the constructive regulatory outcomes. We have achieved this quarter and over the last couple years reflect the more Focus engagement strategy across our footprint by listening to what our customers regulators and States want.

That approach is helping us achieve balanced outcomes that create value for our shareholders and certainly for our customers.

Speaker #3: We have 3 additional filings pending for proposed large load tariffs, and our teams are working closely with key stakeholders to advance them through the approval process.

In summary. A is entering the second half of the year with extremely strong momentum building on the significant progress we have achieved since I joined 2 years ago.

Speaker #3: Collectively, the constructive regulatory outcomes we have achieved this quarter and over the last couple years reflect a more focused engagement strategy across our footprint by listening to what our customers' regulators and states want.

We are serving growing customer demand, investing in critical infrastructure, keeping affordability, Central to our approach and maintaining the financial discipline needed to create long-term value for our customers and shareholders.

Speaker #3: That approach is helping us achieve balanced outcomes that create value for our shareholders and certainly for our customers. In summary, AEP is entering the second half of the year with extremely strong momentum, building on the significant progress we have achieved since I joined 2 years ago.

Speaker #3: We are serving growing customer demand, investing in critical infrastructure, keeping affordability central to our approach, and maintaining the financial discipline needed to create long-term value for our customers and shareholders.

Let me be very clear. AEP now has significant management and Leadership depth. Our board is highly supportive and with our new board editions growing in their expertise as directly tied to, our long-term, strategic plan. This team is second to none. And well, suited to deliver this impressive plan, that will drive significant long-term value for investors. Our future is all about growth, well, into the next decade that is what is expected of me and that is what I intend to deliver with this team.

Speaker #3: Let me be very clear. AEP now has significant management and leadership depth. Our board is highly supportive, and with our new board additions, growing in their expertise as is directly tied to our long-term strategic plan.

I'll now turn the call over to Trevor who will review our second quarter performance drivers and additional financial and business updates.

Thanks Bill.

Speaker #3: This team is second to none and well-suited to deliver this impressive plan that will drive significant long-term value for investors. Our future is all about growth well into the next decade.

I will begin with our financial results and then turn to load growth, the capital plan, and our financing strategy before I conclude with some final thoughts.

Speaker #3: That is what is expected of me and that is what I intend to deliver with this team. I will now turn the call over to Trevor, who will review our Q2 performance drivers and additional financial and business updates.

Starting on, slide 12 of the presentation. As Bill mentioned for the second quarter of 2026 AEP delivered. Operating earnings of $1.36 per share. Compared to 1. 4, 3 5,

Speaker #2: Thanks, Phil. I will begin with our financial results, then turn to load growth, the capital plan, and our financing strategy, before concluding with some final thoughts.

at a high level. Our second quarter results were primarily impacted by several timing related items. Most notably transmission hole Co performance and income taxes.

Speaker #2: Starting on slide 12 of the presentation, as Bill mentioned, for the Q2 of 2026, AEP delivered operating earnings of $1.36 per share, compared to $1.43 per share in the Q2 of 2025.

Transmission whole Co earnings. Reflect the impact of the 2025, minority interest sales, which closed in June, of last year.

Speaker #2: At a high level, our Q2 results were primarily impacted by several timing-related items, most notably transmission hold co-performance and income taxes. Transmission hold co-earnings reflect the impact of the 2025 minority-interest sale which closed in June of last year.

We expect transmission hullco earnings to provide a favorable year-over-year contribution, by the end of 2026 driven by the continued investment in infrastructure.

In addition, the corporate and other segment includes some income tax timing, items related to the Consolidated impacts of the effective tax rate which are expected to reverse by the end of the year.

Speaker #2: While this timing affected year-over-year comparability in Q2, we expect transmission HoldCo earnings to provide a favorable year-over-year contribution by the end of 2026, driven by continued investment in infrastructure.

The same transmission sale and timing related tax items are reflected in our year to date performance on slide 13.

Year to date operating earnings were $3.01 per share compared to $2.98 per share during the same period last year.

Speaker #2: In addition, the corporate and other segment includes some income tax timing items related to the consolidated impacts of the effective tax rate. Which are expected to reverse by the end of the year.

Overall our underlying results continue to demonstrate the business.

Earnings benefited from constructive regulatory outcomes, higher normalized sales and growth in transmission revenues.

Speaker #2: The same transmission sale and timing-related tax items are reflected in our year-to-date performance on slide 13. Year-to-date operating earnings were $3.01 per share, compared to $2.98 per share during the same period last year.

These drivers were partially offset by prior years, favorable weather. And this year's increase onm spend to enhance system reliability, as we continue to execute on our commitment to provide safe and reliable service to our customers.

Speaker #2: Overall, our underlying results continue to demonstrate the strength of the business. Earnings benefited from constructive regulatory outcomes, higher normalized sales, and growth in transmission revenues.

Speaker #2: These drivers were partially offset by prior year's favorable weather, and this year's increased O&M spend to enhance system reliability as we continue to execute on our commitment to provide safe and reliable service to our customers.

As Bill discussed, we continue to make material progress across a number of regulatory proceedings throughout our footprint. Our regulated earned Roe for the quarter was 9.2% consistent with our forecasted expectations for the year end 2026.

Speaker #2: As Bill discussed, we continue to make material progress across a number of regulatory proceedings throughout our footprint. Our regulated earned ROE for the quarter was $9.2%, consistent with our forecasted expectations for the year-end 2026.

Through continued execution of our regulatory strategy centered on customer affordability. Along with structural rate, making improvements, such as the UTM in Texas, s sp999, and Oklahoma, and a forward-looking test here in Ohio, starting in 2028, we believe there is a strong path for regulated. Earned Roe to improve to 9.5% by 2030.

Speaker #2: Through continued execution of our regulatory strategy, centered on customer affordability, along with structural rate-making improvements such as the UTM in Texas, SB998 in Oklahoma, and a forward-looking test year in Ohio starting in 2028, we believe there is a strong path for regulated earned ROE to improve to 9.5% by 2030.

The progress we are seeing across our regulatory initiatives continue growth across our footprint and strong execution year to date have increased our confidence in delivering, strong 2026 financial performance.

As a result, we raised our 2026 operating earnings guidance, range to 6.25 to 655 cents per share.

Speaker #2: The progress we are seeing across our regulatory initiatives, continued growth across our footprint, and strong execution year-to-date have increased our confidence in delivering strong 2026 financial performance.

We're also reaffirming our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS, kegger of greater than 9% through 2030 based off of our 2025 guidance, midpoint and supported, by the 78 billion dollar Capital plan.

Speaker #2: As a result, we raised our 2026 operating earnings guidance range to $6.25 to $6.55 per share. We're also reaffirming our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS CAGR of greater than 9% through 2030, based off of our 2025 guidance midpoint and supported by the $78 billion capital plan.

Turning to slide 14.

1 of the most important drivers of our sustained. Long-term growth Outlook continues to be large load demand,

We now have 69 gigawatts of contracted load editions through 2030 up 6. Gigawatts from the 63 disclosed last quarter, all supported by a combination of fully executed, esa's and Eloise.

Speaker #2: Turning to slide 14, one of the most important drivers of our sustained long-term growth outlook continues to be large load demand. We now have 69 gigawatts of contracted load additions through 2030, up 6 gigawatts from the $63 disclosed last quarter.

This represents another meaningful increase in customer commitments. And further reinforces our confidence in the strength and durability of demand across our diverse high growth service territory.

from a geographic perspective, Texas continues to represent our largest opportunity with 45, gigawatts of contracted load through 2030

Speaker #2: All supported by a combination of fully executed ESAs and LOAs. This represents another meaningful increase in customer commitments and further reinforces our confidence in the strength and durability of demand across our diverse high-growth service territory.

Ohio accounts for 12, gigawatts followed by Oklahoma Indiana, Kentucky, Louisiana and Virginia, Which combined make up the remaining 12 gigawatts.

While the scale of this opportunity is significant is equally important to highlight the protections embedded within our growth strategy.

Speaker #2: From a geographic perspective, Texas continues to represent our largest opportunity with 45 gigawatts of contracted load through 2030. Ohio accounts for 12 gigawatts, followed by Oklahoma, Indiana, Kentucky, Louisiana, and Virginia, which combined make up the remaining 12 gigawatts.

our large load tariffs require customers to make long-term commitments and support the Investments necessary, to serve their demand,

Speaker #2: While the scale of this opportunity is significant, it is equally important to highlight the protections embedded within our growth strategy. Our large load tariffs require customers to make long-term commitments and support the investments necessary to serve their demand.

That structure helps ensure that this growth drives value creation for shareholders while also supporting affordability for existing customers by bringing new load onto the system and expanding the base over which costs can be shared.

These tariff Frameworks. Also provide strong protections against project delays and changing development timelines.

Giving us confidence that we can capture this growth while appropriately, managing potential risk.

Speaker #2: That structure helps ensure that this growth drives value creation for shareholders while also supporting affordability for existing customers by bringing new load onto the system and expanding the base over which costs can be shared.

The quality of the customer base is another important differentiator for AEP.

Speaker #2: These tariff frameworks also provide strong protections against project delays and changing development timelines. Giving us confidence that we can capture this growth while appropriately managing potential risk.

The vast majority of these projects are being Advanced by well, capitalized, hyperscalers and large industrial customers with significant financial resources and long-term infrastructure needs.

as we have previously emphasized, our focus is not simply on the volume of the contracted load, but also on the quality durability and creditworthiness of the customers who are driving that growth

Speaker #2: The quality of the customer base is another important differentiator for AEP. The vast majority of these projects are being advanced by well-capitalized hyperscalers and large industrial customers with significant financial resources and long-term infrastructure needs.

Turning to slide 15.

Speaker #2: As we have previously emphasized, our focus is not simply on the volume of the contracted load, but also on the quality, durability, and creditworthiness of the customers who are driving that growth.

Conditions in AEP Texas through 2030.

As a reminder, our approach to forecasting load, including ercot load is both rigorous and conservative and is supported by fully executed loas in Texas.

Speaker #2: Turning to slide 15, as I previously mentioned, ERCOT continues to represent the largest source of incremental demand across the footprint with 45 gigawatts of Senate Bill 6 compliant contracted load additions in AEP Texas through 2030.

These agreements require customers to secure land, complete interconnection, studies, provide detailed load forecasts and fund the associated infrastructure Investments.

Speaker #2: As a reminder, our approach to forecasting load, including ERCOT load, is both rigorous and conservative and is supported by fully executed LOAs in Texas.

As a result, the projects reflected in our incremental, contracted load have progressed through a disciplined, filtration process and represent credible. Customer commitments with a high degree of confidence.

Speaker #2: These agreements require customers to secure land, complete interconnection studies, provide detailed load forecasts, and fund the associated infrastructure investments. As a result, the projects reflected in our incremental contracted load have progressed through a disciplined filtration process and represent credible customer commitments with a high degree of confidence.

Additionally, we view the recent approval of Eros batch framework as a meaningful step forward.

The new framework is designed to better distinguish committed projects from more speculative requests and provide greater visibility into the timing of large load opportunities.

A key Milestone occurred. Last week when we submitted 45 gigawatts of projects into our cost, batch zero process forecasted between now and 2032.

Speaker #2: Additionally, we view the recent approval of ERCOT's batch framework as a meaningful step forward. The new framework is designed to better distinguish committed projects from more speculative requests and provide greater visibility into the timing of large load opportunities.

Erat is currently reviewing those submissions and is expected to determine eligibility for inclusion. In the back, zero study on August 7th.

Speaker #2: A key milestone occurred last week when we submitted 45 gigawatts of projects into ERCOT's batch zero process, forecasted between now and 2032. ERCOT is currently reviewing those submissions and is expected to determine eligibility for inclusion in the batch zero study on August 7th.

Based on the quality of the projects we submitted and the work completed with our customers. We believe that the projects are well positioned and qualify for inclusion in a batch zero category. In fact, just over the past month we have collected nearly 2 billion dollars in cash or collateral for load commitments in oirat, which represents all the required credit support for the full 45, gigawatts included, in a Texas's batch, zero filing.

Speaker #2: Based on the quality of the projects we submitted and the work completed with our customers, we believe that the projects are well positioned and qualify for inclusion in a Batch Zero category.

The 45 gigawatts of batch zero, loads submitted by AEP Texas, all backed by fully executed loas and meaningful credit, support, underscores, the strength and credibility of demand in Texas.

Speaker #2: In fact, just over the past month, we have collected nearly $2 billion in cash or collateral for load commitments in ERCOT, which represents all the required credit support for the full 45 gigawatts included in AEP Texas' batch zero filing.

Importantly, our 78 billion Capital plan does not anticipate this magnitude of load growth.

Speaker #2: The 45 gigawatts of batch zero load submitted by AEP Texas all backed by fully executed LOAs and meaningful credit support underscores the strength and credibility of demand in Texas.

While kot's review process available generation and the timeline for transmission development, may impact the timing of certain interconnections. These customers remain committed to connecting to our system,

Speaker #2: Importantly, our $78 billion capital plan does not anticipate this magnitude of load growth. While ERCOT's review process, available generation, and the timeline for transmission development may impact the timing of certain interconnections, these customers remain committed to connecting to our system.

And if some of the projects are pushed out that does not diminish, the investment opportunity. In fact, it provides greater confidence. That AEP Texas's growth story will continue well, into the next decade.

The bottom line is that the demand fundamentals in Texas remain exceptionally strong and the additional visibility. We are gaining continues to reinforce the robust long-term growth. Projected their

Speaker #2: And if some of the projects are pushed out, that does not diminish the investment opportunity. In fact, it provides greater confidence that AEP Texas' growth story will continue well into the next decade.

Turning to slide 16, let me conclude with a few brief summary. Remarks regarding our significant progress achieved across the 4 key themes, that reinforce our positive outlook and position us for continued success.

First enhancing financial performance.

Speaker #2: The bottom line is that the demand fundamentals in Texas remain exceptionally strong and the additional visibility we are gaining continues to reinforce the robust long-term growth projected there.

We continue to execute on our financial plan and remain focused on, delivering consistent results for our stakeholders.

Speaker #2: Turning to slide 16, let me conclude with a few brief summary remarks regarding our significant progress achieved across the four key themes that reinforce our positive outlook and position us for continued success.

Based on our year to date performance and the trends we're seeing across the business. We raised our 2026 operating earnings guidance by 10 cents per share.

Speaker #2: First, enhancing financial performance. We continue to execute on our financial plan and remain focused on delivering consistent results for our stakeholders. Based on our year-to-date performance and the trends we're seeing across the business, we raised our 2026 operating earnings guidance by $0.10 per share.

We are reaffirmed our annual operating earnings growth rate of 7 to 9% and continue to expect an operating EPS, tagger of greater than 9% through 2030 based on the 78 billion dollar Capital plan.

During the second quarter we also substantially de-risked our financing plan through the successful execution of our 3 billion dollar marketed Equity transaction which is expected to be settled under Ford contracts by May 2028.

Speaker #2: We are reaffirmed our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS CAGR of greater than 9% through 2030 based on the $78 billion capital plan.

With this transaction, we have addressed all the anticipated marketed Equity needs to support the 78 billion. 5-year, Capital plan.

We are now well, positioned to focus on the robust growth. We are seeing across our footprint.

Speaker #2: During the second quarter, we also substantially de-risked our financing plan through the successful execution of our $3 billion marketed equity transaction. Which is expected to be settled under forward contracts by May 2028.

As we evaluate incremental investment opportunities, we will continue to assess a broad set of financing tools, with a focus on shareholder value.

Speaker #2: With this transaction, we have addressed all the anticipated marketed equity needs to support the $78 billion five-year capital plan. We are now well-positioned to focus on the robust growth we are seeing across our footprint.

We remain committed to supporting strong investment, grade credit metrics, including our targeted ffo to debt ratio of 14% to 15%.

Second driving customer. Affordability. Remains a key priority.

Speaker #2: As we evaluate incremental investment assess a broad set of financing tools with a focus on shareholder value. We remain committed to supporting strong investment-grade credit metrics, including our targeted FFO to debt ratio of 14% to 15%.

The large load Frameworks. We have established across our jurisdictions support rapid growth while creating meaningful benefits for existing customers, including up to 16 billion dollars of projected cost offsets

In addition, our doe financing initiatives are expected to generate significant customer Savings of 1.4 billion dollars while supporting needed infrastructure investment.

Speaker #2: Second, driving customer affordability remains a key priority. The large load frameworks we have established across our jurisdictions support rapid growth while creating meaningful benefits for existing customers, including up to $16 billion of projected cost offsets.

Third capturing systemwide growth.

Customer demand continues to accelerate as we now have 69. Gigawatts of contracted load additions to 2030 supported by high-quality. Well, capitalized customers.

Speaker #2: In addition, our DOE financing initiatives are expected to generate significant customer savings of $1.4 billion while supporting needed infrastructure investment. Third, capturing system-wide growth.

significant runway for future investment and growth across our service territory

We also look forward to obtaining additional Clarity on the timing of urot load as the batch process review continues.

Speaker #2: Customer demand continues to accelerate as we now have 69 gigawatts of contracted load additions through 2030, supported by high-quality, well-capitalized customers. This demand continues to provide a significant runway for future investment and growth across our service territory.

We continue to advance our 78 billion base, Capital plan, and the 10 billion dollars of opportunities beyond the base plan, including the fuel cells, for the Wyoming project, the Pike and transmission opportunity and incremental power generation.

Speaker #2: We also look forward to obtaining additional clarity on the timing of ERCOT load as the batch process review continues. We continue to advance our $78 billion base capital plan and the $10 billion of opportunities beyond the base plan, including the fuel cells for the Wyoming project, the pipes and transmission opportunity, and incremental power generation.

We look forward to providing a more comprehensive update on our Capital plan. Financing strategy and growth trajectory as part of our regular third quarter, financing Plan update.

Speaker #2: We look forward to providing a more comprehensive update on our capital plan, financing strategy, and growth trajectory as part of our regular third-quarter financing plan update.

Finally, we remain focused on improving Regulatory and operational outcomes. Whether it's securing a significant amount of generation resources advancing, critical transmission Investments, strengthening regulatory outcomes and relationships, or preparing the grid for unprecedented low growth. Our teams are committed to delivering results for our customers and our shareholders while maintaining operational excellence.

Speaker #2: Finally, we remain focused on improving regulatory and operational outcomes. Whether it's securing a significant amount of generation resources, advancing critical transmission investments, strengthening regulatory outcomes in relationships, or preparing the grid for unprecedented load growth, our teams are committed to delivering results for our customers and our shareholders while maintaining operational excellence.

Taken all together. We believe AEP is 1 of the best positions utilities to capitalize on the generational growth occurring across the electric sector.

Which is supported by a robust capital investment pipeline, a disciplined financing strategy, diverse footprint and strong execution across the business.

With that, I will now ask the operator to please open the line for questions.

Speaker #2: Taken altogether, we believe AEP is one of the best positions utilities to capitalize on the generational growth occurring across the electric sector. Which is supported by a robust capital investment pipeline, a disciplined financing strategy, diverse footprint, and strong execution across the business.

at this time, I would like to remind everyone if

Your first question comes from the line of sharp Parisa with Wells, Fargo. You may go ahead.

Hey guys. Good morning morning. Sure.

Speaker #2: With that, I will now ask the operator to please open the line for questions.

Speaker #1: At this time, I would like to remind everyone if you would like to ask a question, please press star one on your telephone keypad.

Speaker #1: Your first question comes from the line of Sharp, Parisa, with Wells Fargo. You may go ahead.

Speaker #3: Hey, guys. Good morning.

Speaker #4: Morning, Sharp.

Speaker #3: Morning, Bill. Just in West Virginia, I know one of your peers is seeing obviously a lot of growth from hyperscalers and potentially looking at a Genco structure.

Morning, Bill, uh, just in West Virginia. And I know 1 of your peers is seeing obviously a lot of growth from hyperscalers and potentially, looking at a Genco structure. So, I guess given the governor's goals around new gas, I guess, how are you thinking about potential opportunities to serve hyperscalers, in the state using maybe an alternative financing structure? As we're kind of thinking about speed to Market like bypassing the cpcn process is a Genco structure like a potential opportunity to see down the road in West Virginia and maybe some of the other states.

Speaker #3: Just, I guess, given the governor's goals around new gas, I guess, how are you thinking about potential opportunities to serve hyperscalers in the state using maybe an alternative financing structure as we're kind of thinking about speed to market, like bypassing the CPCN process?

Yeah, thanks. Uh, thanks for that question, Sharon. And we are, uh, clearly looking into the Genco structure. We're, we're finding a very intriguing. And, and I think it will, uh, obviously, be something we're closely analyzing. And at a broader, uh, point with regards to West Virginia,

Speaker #3: Is it Genco structure, like a potential opportunity you see down the road in West Virginia and maybe some of the other states?

Speaker #4: Yeah, thanks for that question, Shar. We are clearly looking into the Genco structure. We're finding it very intriguing, and I think it will obviously be something we're closely analyzing.

Speaker #4: And at a broader point with regards to West Virginia, really love where we're at in that state. I think you probably saw we already announced one project in West Virginia for about 1.2 gigawatts.

Speaker #4: And we've got a number of other projects that are heading down the pathway to support the governor's goals of his 50 by 50 targets.

Really love where we're at in that state. Uh, I think you probably saw. We already announced 1 Project in West Virginia, for about 1.2 gigs. And we've got a number of other projects that are uh heading down the pathway to support the governor's goals of his 50 by 50 uh targets. And so I like I really like where we're at in, in West Virginia, we've made a tremendous uh change in atmosphere there. We're very aligned with all of the stakeholders and uh, I think as the next several months go on you'll see some pretty significant opportunities come to life there.

Speaker #4: And so I like I really like where we're at in West Virginia. We've made a tremendous change in atmosphere there. We're very aligned with all of the stakeholders and I think as the next several months go on, you'll see some pretty significant opportunities come to life there.

Speaker #3: Got it. Okay. That's perfect. And then just maybe around the guidance and disclosures. I mean, obviously, you guys have batch zero that goes beyond some of that goes beyond 2030 at batch one.

Speaker #3: You have 195 gigawatt figure out there. I guess, is there a point where you would think about maybe enhancing your disclosures? I mean, some of your peers talk about EPS ranges for every gigawatt of new large load that comes on.

Got it. Okay, that's perfect. And then just maybe around the guidance and and, and disclosures. I mean obviously you guys have bat zero that goes beyond some of that goes beyond 2030 at batch 1. You have 195, gigawatt, figure out there, I guess, is there a point where you would think about, maybe enhancing your disclosures? I mean, some of your peers, talk about like EPS ranges for, you know, every gigawatt of new large load that comes on. Um, I mean, I guess, is there a point where you move away from this 7 to 9% longer term number out there? I mean clearly Bill, what you're displaying is you guys are 9 plus and a huge amount of capex. I mean, I guess, is there a way you can provide a little bit more visibility Beyond 2030 longer term? Just to give investors some more confidence that this isn't sort of

The short-term phenomenon. Thanks.

Speaker #3: I mean, I guess, is there a point where you move away from the 7 to 9 percent longer-term number out there? I mean, clearly, Bill, what you're displaying is you guys are 9 plus and a huge amount of capex.

Speaker #3: I mean, I guess, is there a way you can provide a little bit more visibility beyond 2030 longer-term just to give investors some more confidence that this isn't sort of a short-term phenomenon?

Speaker #3: Thanks.

Speaker #4: Yeah. I appreciate that viewpoint. I'll let Trevor hop in here to finish up on this question. But there's a number of folks who have been quizzing us sort of like how much what's our cost per line mile of transmission or cost per kilowatt of a plant?

Speaker #4: And I've sort of kept our team from looking at it in that way because there's so many different variables across these projects. That trying to put a number in place like that on some metric, I don't think is really all that accurate and meaningful.

Speaker #4: And so I'm really keeping our team focused on these things at a project by project basis. And as far as sort of additional disclosures, Trevor, maybe give your viewpoint on that.

Speaker #3: Sure, Bill. Hey, Shar. So with regards to the growth rate and beyond 2030, we're really are looking forward to laying out our 2027 to 2031 plan.

Speaker #3: But as you say, we've got that 195 gigs of folks trying to actively interconnect to the queue. And I think what this really does is it shows that we have a pretty long runway of continued outsized capex growth well into the next decade.

Is as far as sort of additional disclosures Trevor. Maybe give your viewpoint on that, sure Bill. Hey sure. Um, so with regards to, uh, the growth rate and and Beyond 2030. Um, we we're really are looking forward to, uh, laying out our, uh, 2027 to 2031 plan. But as you say, we've got that 195. Gigs of of uh folks trying to actively interconnect to the queue. And I think what this really does is it shows that we have a pretty long, Runway of uh continued outsized capex growth well into the next decade. And so from that perspective, um, we will continue to generally talk about uh, what the 5-year growth rate is. Um, and then we will contemplate as to what we want to do, uh, in the third quarter, when we roll out, the new revised plan to maybe give some line of sight into anything beyond that, but again, I think right now what what we remain,

Speaker #3: And so, from that perspective, we will continue to generally talk about what the five-year growth rate is. Then we will contemplate what we want to do in the third quarter, when we roll out the new revised plan, to maybe give some line of sight into anything beyond that.

Very committed to is this greater than 9% growth rate over that 5 year period. And uh again seeing uh the amount of capex around generation transmission and distribution, extending well into into the next decade.

Got it. Okay, that's perfect. Thank you guys very much. Appreciate it. Thanks.

You're next question.

Speaker #3: But again, I think right now what we remain very committed to is this greater than 9% growth rate over that five-year period. And again, seeing the amount of capex around generation transmission and distribution extending well into the next decade.

Research, you may go ahead.

Hey, good morning.

Speaker #3: Got it. Okay. That's perfect. Thank you guys very much. Appreciate it. Thanks, Shar.

Hey Steve. Um so just uh on the maybe a little bit on the badge zero uh disclosure. Uh, thanks for that. Is there any way to get uh, to tie?

Speaker #1: Your next question comes from the line of Steve Fleischman with Wolf Research. You may go ahead.

What's uh, actually in the current uh Capital plan for?

Expected growth for AP Texas.

Uh to to that.

Speaker #3: Hey, good morning.

Speaker #4: Hey, Steve.

Speaker #3: So just on the maybe a little bit on the batch zero disclosure, thanks for that. Is there any way to get to tie what's actually in the current capital plan for expected growth for AP Texas to that?

yeah, so Steve what we've done is historically, we've said that uh, generally the the 78 billion 5 year Capital plan was disclosed that it really was based on a 13 gigs of, um,

Speaker #4: Yeah. So Steve, what we've done is, historically, we've said that generally the $78 billion five-year capital plan that was disclosed really was based on a 13 gigs of interconnection in Texas.

Interconnection in Texas and we have raised that now, uh, as you've seen to the 45 gigs, uh again what we don't want to assume, is that that's a dollar for dollar increase. But what it is doing is giving us line of sight to an increase in capital plan as we lay out what's going on in Texas. Um, and from that perspective again, I think, uh, with more meaningful is if you look beyond the 45. Um, we also have

Speaker #4: And we have raised that now. As you've seen to the 45 gigs. Again, what we don't want to assume is that that's dollar for dollar increase.

Speaker #4: But what it is doing is giving us line of sight to an increasing capital plan as we lay out what's going on in Texas.

Have I think it's almost 100 gigawatts in Texas behind that 45 gigs. And again, we know, not all of that will come on. But I think what that really does is it shows a line of sight beyond the, the 5-year plan, um, with continued Transmission buildout in Texas, in support of of these large loads interconnecting.

Speaker #4: And from that perspective, again, I think what's more meaningful is if you look beyond the 45, we also have I think it's almost 100 gigawatts in Texas behind that 45 gigs.

okay, no, that's helpful but he, but I guess the 13 gigs in the current plan still below even

What's in the base?

Speaker #4: And again, we know that not all of that will come on. But I think what that really does is it shows line of sight beyond the five-year plan with continued transmission build-out in Texas in support of these large loads interconnecting.

That's right. Perfect. Zero. Uh um, okay.

Speaker #3: Okay. No, that's helpful. Buddy, but I guess the 13 gigs in the current plan still below even what's in the base?

And again, you put that as a as a, a multiple of, you know, 13. So it's going to be 3 times bigger on the capex plan prospectively. Um, but we do think that there is going to be, uh, some increased capex in in Texas associated with this.

That's good.

Speaker #4: That's right. That's right.

Speaker #3: For batch zero. Okay. And maybe just one clarification.

And then just uh, both you and Centerpoint have given these disclosures, which are helpful.

Speaker #4: I would put that as a multiple of 13. So it's going to be three times bigger on the capex plan prospectively. But we do think that there is going to be some increased capex in Texas associated with this.

Do you have any idea just the the likelihood that these are that are going to change them when they finalize? Like it was this pretty explicit.

Uh, they were said or or could there still is it, they're likely to be some adjustments. Uh,

Speaker #3: Understood. And then just both you and Centerpoint have given these disclosures, which are helpful. Do you have any idea just the likelihood that these are that ERCOT's going to change them when they finalize?

Speaker #3: Was this pretty explicit how they were said, or is there likely to be some adjustments?

Speaker #4: Yeah. I think if you take a look at what even ERCOT published recently, I think on July 28th, on their preliminary overview of the batch zero eligibility and what they were putting out there, what I would draw your attention to is within the 205 gigs that they had in the batch zero process that were eligible, we're roughly call it a quarter of that.

Speaker #4: Whether that gets pushed between base or allocated, I really look at those as probably pretty firm amounts and maybe if it's a slip between base and allocated, it could slip one year.

Speaker #4: But what that really does is gives us, again, confidence that you've got a longer-term line of sight to deploy the capital. And we feel very good about the 45 gigs and again, as we said in the prepared remarks, the filtration process that we go through, we are pretty rigorous in what we put forward on that.

Again, confidence that you've got a longer term line of sight to deploy the capital, and we feel very good about the 45 gigs. And, and again, as we said in the prepared remarks, the filtration process that that we go through. Um, we we are pretty rigorous in in what we put forward on that. And again, we've gotten all the financial commitments, in 2 billion dollars of cash and, and other forms of of collateral in support of those 45 gigs. So, we're pretty, pretty confident in the 45 gigs and then, however, Urka tries to move that around. Um, I I think that's pretty pretty set. It just may move, uh, you know, from about zero to to batch 1 in in worst case scenario.

Speaker #4: And again, we've gotten all the financial commitments in $2 billion of cash and other forms of collateral in support of those 45 gigs. So we're pretty confident in the 45 gigs and then however ERCOT tries to move that around, I think that's pretty set.

And then 1 other just follow up to the question. On West Virginia, the 1 of the things that First Energy mentioned. Uh, yesterday was also looking at kind of bridging opportunities.

for some of the new load there, uh, is that something that you

Uh, think you could do for customers there as well.

Speaker #4: It just may move from batch zero to batch one in worst-case scenario.

Absolutely. And that's something that I would say. We actually pioneered early on with our deal with Bloom Energy, in fact,

Speaker #3: Okay. And then one other just follow-up to the question on West Virginia. The one of the things that First Energy mentioned yesterday was also looking at kind of bridging opportunities for some of the new load there.

Uh, as we started deploying bridging strategies. Obviously, we noticed others sort of picking up on that on that idea. And so as we communicate with customers,

Speaker #3: Is that something that you think you could do for customers there as well?

Speaker #4: Absolutely. And that's something that I would say we actually pioneered early on with our deal with Bloom Energy. In fact, as we started deploying bridging strategies, obviously, we noticed others sort of picking up on that idea.

Speaker #4: And so, as we communicate with customers, we're giving them a very clear line of sight to how much capacity they can get immediately—which, in West Virginia, we do have some reasonable opportunities there in that regard.

We're giving them a very clear line of sight to how much, uh, capacity they can get immediately. Uh, which in West Virginia. We do have some reasonable opportunities there in that regard and then also how we can supply them energy. As we build out the transmission to go, get them and or the generation. And so I would say the customers were talking with right now, have been very pleased with the the optionality we provided them and uh we have a number of active discussions uh in progress. So super excited about what's happening in West Virginia.

Speaker #4: And then also how we can supply them energy as we build up the transmission to go get them and/or the generation. And so I would say the customers we're talking with right now have been very pleased with the optionality we've provided them and we have a number of active discussions in progress.

Thank you. Yep. Thanks Steve.

Your next question comes from the line of Julian.

Hey, good morning team, thank you guys very much. I appreciate it. Nicely done again. Um,

Speaker #4: So super excited about what's happening in West Virginia.

Speaker #3: Okay. Thank you.

Speaker #4: Yep. Thanks, Steve.

Speaker #1: Your next question comes from the line of Julien Dumoulin-Smith with Jefferies. You may go ahead.

if I can take a a further focus on pjm here, uh, 1 would love to hear your latest thoughts of how you think about, uh, just engaging in in non-utility, um, Avenues, right? You just alluded to vtm for instance, says behind the meter bridging. I just when you think about segments reporting, when you think about where some of the shows up, uh,

Speaker #5: Hey, good morning, team. Thank you guys very much. I appreciate it. Nicely done again. If I can take a further focus on PGM here.

Speaker #5: First, I’d love to hear your latest thoughts on how you think about engaging in non-utility avenues, right? You just alluded to VTM, for instance, as behind-the-meter bridging.

Speaker #5: When you think about segments and reporting, when you think about where some of this shows up and your flexibility in helping customers in a restructured geography, how do you think about participating? Or, for instance, would you engage in acquiring existing generation to rate base and effectively flow that through your traditional tariffs?

And and your flexibility and and and helping customers, uh, in a restructured geography. How do you think about participating? Or for instance, would you engage in, you know, acquiring existing generation to to rate base and effectively uh flow that through your traditional tariffs? Just curious on the different permutations both in West Virginia and um in your other um pjm properties, especially Ohio.

Speaker #5: Just curious on the different permutations, both in West Virginia and in your other PGM properties, especially Ohio.

Speaker #4: Yeah. Thanks, Julian. And good morning. I think we've proven that we're willing to go out and procure generation in our regulated utilities. And in PJM, we've got a number of projects that we've announced in the past that have been purchased for, for instance, four Indiana-Michigan power and so we're always on the hunt for good quality assets that we can use to really supplement what we have in these vertical integrated utilities.

Yeah, thanks Julene and and good morning. Uh, I think we've proven that. We're willing to go out and procure generation, uh, in our regulated Utilities in in pjm. We've got a number of projects that we've announced in the, in the past that have been purchased for, uh, for instance, for Indiana, Michigan Power. Uh, and so, we're always on the hunt for good quality assets that we can use to really supplement what we have in these in these vertical integrated utilities. And I also think that the benefit of pjm obviously is that we can have these assets in, in other locations and get that power delivered to where we need it. And so, the benefits of the way we look at the system, more broadly, uh, is that the, the footprint, uh, really offers a significant advantages in this market, uh, because of the fact that a number of the

Speaker #4: And I also think that the benefit of PJM, obviously, is that we can have these assets in other locations and get that power delivered to where we need it.

Speaker #4: And so the benefit of the way we look at the system more broadly is that the footprint really offers significant advantages in this market because of the fact that a number of the hyperscalers now want to be in more rural areas. Our ability to find generation sort of wherever, and get it delivered, again is a pretty significant key advantage for us as we go forward.

Hyper scalers. Not want to be in more rural areas, our ability to find generation sort of wherever and get. It delivered. Again, is a pretty significant key Advantage for us as we go forward.

Got it. Okay. And then just as you think about, uh, other novel Avenues here to bring generation in, how do you think about, uh, new nuclear in the context of, of a Genco, or how do you think about, um, the new nuclear construct as, as it's evolving here with the R rating agencies and other parties here. Just ultimately, how is that coming together? You guys have been particular spoken on the

Speaker #5: Got it. Okay. And then just as you think about other novel avenues here to bring generation in, how do you think about new nuclear in the context of a Genco, or how do you think about the new nuclear construct as it's evolving here with the rating agencies and other parties here?

Speaker #5: Just ultimately, how is that coming together? You guys have been particularly outspoken on this.

Speaker #4: Well, I think just on the broader topic of a Genco, it's clearly something that we're doing significant evaluation of is we think it provides some pretty significant advantages to us as we go forward in and look to serve these customers on a very significant size.

Something that we're doing significant. Evaluation of is we think it provides some pretty significant advantages to us as we go forward in and look to serve these customers on a, on a very significant, uh, size. And, and on the new nuclear front, uh, as we evaluate these new nuclear opportunities, whether they're in a, a Genco or whether they're tied directly to a specific customer just to reiterate, we're continuing to remain extremely prudent in the capital allocation and near-term spending on this to make sure that

Speaker #4: And on the new nuclear front, as we evaluate these new nuclear opportunities, whether they're in a Genco or whether they're tied directly to a specific customer, just to reiterate, we're continuing to remain extremely prudent in the capital allocation and near-term spending on this to make sure that we're aligned with our broader financial strategy and as we've said in the prepared remarks, we're going to continue to require robust capital protection measures around this and very strong balance sheet and credit safeguards and clear regulatory and policy support in order to move forward with anything.

We're aligned with our broader Financial strategy. And uh, as we've said in the prepared remarks, uh we're going to continue to require robust Capital protection, measures around this and very strong balance sheet, and credit safeguards, and and clear Regulatory, and policy support in order to move forward with anything. And so, uh, while the structures are are interesting, um, we continue to look at other opportunities and and trying to find a way to serve these customers in a manner that gives them the timing that they want.

Speaker #4: And so while the structures are interesting we continue to look at other opportunities in trying to find a way to serve these customers in a manner that gives them the timing that they want.

Awesome and sorry, just a quick 1. Just to clarify the response to Shaw earlier. You said you're committed to this greater than 9% growth rate over the 5 year period. Just, you know, we've seen your peers got to say, look we're not going to be overly prescriptive. We're going to leave it as a kind of a 9 plus and and, and and, you know, you can do the math if you will is, is that

Speaker #5: Awesome. And sorry, just a quick one to clarify the response to Shaw earlier. You said you're committed to this greater than 9% growth rate over the five-year period.

Speaker #5: Just we've seen your peers kind of say, "Look, we're not going to be overly prescriptive. We're going to leave it as a kind of a 9-plus and you can do the math if you will." Is that the construct that you're thinking about here or do you think obviously, given what you're even alluding to here, there's more latitude than what 9 would suggest.

Speaker #5: But I'm just curious how you would think about communicating another plus?

Speaker #4: Well, my view is plus-plus-plus but I'll let Trevor answer. So yeah, Julian, I think from

Speaker #5: our perspective, given that we are at a greater than 9% over the five-year period, which I think is probably one of the industry leading growth rates out there, I think we're comfortable with that because as you look beyond the five-year plan, we continue to see a lot of opportunity to continue to invest capital and an increased growing capital plan, but we just want to be careful that we're not getting ourselves into a situation where it's making financing that difficult or anything to that effect.

A construct that you're thinking about here or do you think obviously given what you're even alluding to here? There's more latitude than than what 9 would suggest. I'm just curious how you would think about communicating that or do you just leave the plus with maybe another plus? Well, my my view is plus plus plus, but I'll let Trevor so, yeah, Julian. I think from our perspective given that, that we are at a greater than 9% over the 5 year period, which I think is probably 1 of the, the industry leading, uh, growth rates out there. Um, I think we're, we're comfortable with that because, as you look, uh, beyond the 5-year plan, we continue to see a lot of opportunity to continue to invest capital and, and an increased growing Capital plan. But we just want to be careful that we're not getting ourselves into a situation. Uh, where it's, it's making, uh, financing that difficult or or anything to that effect. And again, I think, uh, for a utility with a, a TSR of, you know, 10 to 30

13% is is pretty robust and I think again, we've alluded to the fact that um on this call and and what we're happy to come out with on the third quarter, call a continued increase in the capital plan which uh, will continue to see uh that growth rate into the next decade.

Speaker #5: And again, I think for a utility with a TSR of 10 to 13 percent is pretty robust and I think, again, we've alluded to the fact that on this call and what we're happy to come out with on the third quarter call, a continued increase in the capital plan which will continue to see that growth rate into the next decade.

Awesome, guys, thank you for the time. Thank you, Jillian.

Your next question comes from.

Richard, Sunderland with truist Securities. You may go ahead.

Speaker #5: Awesome, guys. Thank you for the time.

Speaker #4: Thank you, Julian.

Speaker #1: Your next question comes from the line of Richard Sunderland with Truist Securities. You may go ahead.

Hey, good morning and thanks for the time today. I want to stick with some of these pjn topics but zoom out a little bit more, you're thinking back to the last quarter, you had some comments on kind of the state of pjm and there have been you know numerous developments on the pjm front since then I'm curious kind of on balance of all those developments and what's to come into the fall, how you're thinking about the the sort of PJ and push intakes as you see them right now.

Speaker #6: Hey, good morning and thanks for the time today. I want to stick with some of these PJM topics, but zoom out a little bit more just thinking back to last quarter.

Speaker #6: You had some comments on kind of the state of PJM and there have been numerous developments on the PJM front since then. I'm curious kind of on balance of all those developments and what's to come into the fall, how you're thinking about the sort of PJM push and takes as you see them right now.

As we highlighted back on the first quarter call, um, just to remind everybody, we saw 3 main issues as it pertains to serving new customer load in pjm governance. Uh, the speed of interconnect and then resource adequacy and

Uh, since that call.

I want to say to to all that the pace and intensity of productive conversations with pjm has significantly increased and

Speaker #4: As we highlighted back on the first quarter call, just to remind everybody, we saw three main issues as it pertains to serving new customer load in PJM.

Speaker #4: Governance, the speed of interconnect, and then resource adequacy. And since that call, I want to say to all that the pace and intensity of productive conversations with PJM has significantly increased.

We're seeing very positive engagement across the board including, uh, the team of pjm ferc other key stakeholders, our states, and we continue to analyze all of the options and we're hopeful that we can all come together and create a set of solutions that allow us to meet the needs of the customers.

Speaker #4: And we're seeing very positive engagement across the board, including the team at PJM, FERC, other key stakeholders are states, and we continue to analyze all of the options and we're hopeful that we can all come together and create a set of solutions that allow us to meet the needs of the customers.

Speaker #4: And we certainly recognize that PJM is seeking to address a number of these issues and coming out of the July 23rd technical conference, we are very optimistic that there's going to be alignment around some of the solutions and as these issues continue to evolve, it's obviously important that any of the frameworks that get put forward ensure fairness to all of the participants and protect customers and appropriately the science cost to those who are causing them.

And we certainly recognize that pjm is seeking to address a number of these issues and coming out of the, uh, July 23rd technical conference. Uh, we are very optimistic that, uh, there's going to be alignment around some of the solutions. And uh, as these issues continue to evolve, uh, it's obviously important that any of the Frameworks that get, put forward, ensure fairness to all of the participants and protect customers and appropriately assigned costs,

Uh, I'm very hopeful with with where we're at. Obviously this is an important topic for us. We were significantly engaged in the technical conference and I'm hopeful then that uh, as the next few weeks uh pass that there's going to be a good solution set that uh can be supported by by ourselves and and ferc in a number of our uh other stakeholders and collaborators.

Speaker #4: And so I'm very hopeful with where we're at. Obviously, this is an important topic for us. We were significantly engaged in the technical conference and I'm hopeful then that as the next few weeks, pass, that there's going to be a good solution set that can be supported by ourselves and FERC and a number of our other stakeholders in collaborators.

Great, thank you for the caller there and then curiously upside down. Actually, I know you take through some of the considerations around fuel cells and pikatan. I guess across both those 2 in particular, how are you thinking about Milestones into the 3Q Plan update? And if those projects will be ready for inclusion, in the base plan, I guess, particularly for fuel cells with that, December date, you highlighted.

Speaker #6: Great. Thank you for the color there. And then turning to the upside path etch, I know you ticked through some of the considerations around fuel cells and piketin.

Speaker #6: I guess across both those two in particular, how are you thinking about milestones into the 3Q plan update and if those projects will be ready for inclusion in the base plan, I guess particularly for fuel cells with that December date you highlighted?

Speaker #4: Yeah, Richard, this is Trevor.

Speaker #5: I think we feel pretty optimistic with regards to both projects. I think we've been pretty public about the fact that I think the piketin project in particular, we're advancing towards executing docs on that and we anticipate that we would have executed docs in the third quarter.

Yeah, Richard, this is Trevor. Um, I think we feel pretty optimistic with regards to uh to both projects. Um I think we've been uh pretty public about the fact that I think the pipe didn't project in particular uh where advancing towards executing docs on that and we anticipate that we would have executed docs in the third quarter. So, uh, I think that would then roll into the, uh, the 5 year, Capital plan that we would roll out on the third quarter of calls with regards to the Wyoming, fuel cell project there again, I think uh, we continue to work with the hyperscaler. Uh, we did make some accommodations with regards to, uh,

Speaker #5: So I think that would then roll into the five-year capital plan that we would roll out on the third quarter call. With regards to the Wyoming fuel cell project, there again, I think we continue to work with the hyperscaler.

Speaker #5: We did make some accommodations with regards to timing and we're adequately compensated for that adjustment. But again, what we're really hopeful for is that that project will advance and I think timing is key on that just because those fuel cells need to be installed and ready to go by the end of 2028 to qualify for the investment tax credit.

Speaker #5: And so I think likewise, we will see some positive movement hopefully by that third quarter call and then roll that into the five-year plan.

Timing. Um, and we're adequately compensated for that adjustment. Um, but again, what we're really hopeful for is that that project will advance and I think uh, timing is key on that just because those fuel cells need to be installed and ready to go. By the end of 2028 to qualify for the intact, the investment tax credit. And so I think, uh, likewise, we will see some positive movement. Hopefully by that third, quarter call, and then roll that into into the 5 year plan. And then likewise, we also have, as we've said on the call, the 13w of uh, incremental Generation. Um, some of that call it maybe roughly about half was in the existing 78 billion 5 year Capital plan. Um, but the incremental uh, other half of those generation projects Will Roll in. And that's also some Tailwinds going into, uh, the revised 5-year Capital plan for 27 to 31.

Speaker #5: And then likewise, we also have as we've said on the call, the 13 gigawatts of incremental generation some of that call it maybe roughly about half was in the existing 78 billion dollar five-year capital plan, but the incremental other half of those generation projects will roll in and that's also some tailwinds going into the revised five-year capital plan for 27 to 31.

Great, thank you for the time today. Thanks so much Richard. Thank you.

Your next question comes from the line of David Aro with Morgan Stanley. Please go ahead.

Hey, thank you. Good morning.

Speaker #6: Great. Thanks for your time today.

Speaker #5: Thanks so much, Richard.

Speaker #4: Thank you.

Speaker #1: Your next question comes from the line of David Arquero with Morgan Stanley. Please go ahead.

Speaker #7: Hey, thank you. Good morning.

Morning, David. Um, I was wondering if you could elaborate a little bit on what, um, what types of agreements you're looking at for that, uh, 10 gigawatts of turbines that you're kind of exploring access to, in the 2030s. Um, is this, you know, framework agreements, um, over that for gigawatts over that time frame. And I guess what gives you the um, what gives you the visibility also in kind of the line of sight looking out that far as to your uh as to your current needs

Speaker #4: Good morning, David.

Speaker #7: I was wondering if you could elaborate a little bit on what types of agreements you're looking at for that 10 gigawatts of turbines that you're kind of exploring access to in the 2030s?

Speaker #7: Is this a framework agreement over that for gigawatts over that time frame? And I guess what gives you the what gives you the visibility also in kind of the line of sight looking out that far as to your current needs?

So you look at our overall planning. Uh, we're obviously 1 of the nation's largest owner operators of of electric generation. Uh, we've been very proactive, uh, since I arrived over the past couple of years to be a securing turbines and other critical long lead time equipment. Basically, you lose

essentially using our size and scale and our

Speaker #4: So, if you look at our overall planning, we're obviously one of the nation's largest owner-operators of electric generation. We've been very proactive since I arrived over the past couple of years to secure turbines and other critical, long lead-time equipment, basically using our size and scale, and our relationships with, namely, GE Vernova and Mitsubishi, to get this equipment locked up.

uh, relationships with namely GE Renova and and Mitsubishi to get this equipment locked up.

As we looked at, uh, and are looking at our new 5-year plan this fall, the new generation Investments are going to play a pretty Central role in driving the long-term growth. As we look to deploy this 13, gigawatts of of turbine capacity across the the uh the regulated businesses.

Speaker #4: As we looked at, and are looking at, our new five-year plan this fall, the new generation investments are going to play a pretty central role in driving the long-term growth as we look to deploy this 13 gigawatts of turbine capacity across the regulated businesses.

Speaker #4: And we've been obviously extremely proactive to get these turbines. As we think about where this is going, we know that generation is going to be a driving force and because of that, it's a scarce resource and we'll become increasingly more valuable.

Speaker #4: So this has certainly played out, and we're going to continue to be aggressive in our positions on this. We're continuing to actively work with key suppliers and are very confident that not only with what we have locked up, but we've got clear line of sight through certain framework agreements and such, that we can get what we need to continue to deliver for customers.

Speaker #4: Trevor, anything to add?

Speaker #5: Yeah, thanks, Bill. Just two things. One, David, I would say that the 10 gigs is an option for us. So we're not committed to that, but we have the option to step into those slots.

Speaker #5: But more importantly, I would also say when you take a look at what the timing of those 10 gigs would be, it dovetails well into our existing plants that are aging and will be retiring.

There's 1 David. I would say that the 10 gigs is an option for us. So we're not committed to that but we have the option, uh, to step into those slots. Um, but more more importantly, I would also say, uh, when you take a look at what the timing of those, uh, 10 gigs would be it. It dovetails well into our existing uh plants that are aging and will be retiring. And so what this is really doing is setting us up really well to continue to uh, replace um, potentially some of the coal plants and some of the uh, the retiring gas plants in our vertically integrated utilities. So, uh, again, it's just, uh, us taking a very forward-leaning approach, uh, to ensuring, we've got access to the assets for the support of the entire portfolio.

Speaker #5: And so what this is really doing is setting us up really well to continue to replace potentially some of the coal plants and some of the retiring gas plants in our vertically integrated utilities.

Speaker #5: So again, it's just us taking a very forward-leaning approach to ensuring we've got access to the assets for the support of the entire portfolio.

Speaker #7: got it. Yeah, that's helpful. I appreciate that. Separately, I was just wondering, as we head I guess into your 3Q and the update to the CAPEX plan, as I'm looking at the new generation resources, just wondering, are there other incremental load opportunities coming between now and then?

Got it. Yeah, that's helpful. I appreciate that. Um, separately. I was just wondering, you know, as we head, uh, I guess into your 3Q in the update to the capex plan, as I'm looking at the, uh, you know, new generation resources. Um, just wondering are there other uh incremental uh load opportunities coming between now and then you know between now and 3 Q like Is there further potential upside to say the batch zero or you've been very active? Very successful in uh the quarterly progress on Contracting new uh large loads with 6 gigawatts here at like to that continue to increase. Um as we go uh, in the coming

Coming months into 3Q.

Speaker #7: Between now and 3Q, is there further potential upside to, say, the batch zero or you've been obviously very active, very successful in the quarterly progress on contracting new large loads with six gigawatts here?

Speaker #7: Could that continue to increase as we go into the coming months and into Q3?

Speaker #5: Yeah, I think what we have seen is that executed LOAs and EFAs increase every quarter over the last, call it, six, seven quarters here.

Speaker #5: We do continue to see active interconnection requests to connect to the system. Again, we do know that a lot of that is limited by generation in some of those states, like Texas and Ohio.

Yeah. I I think, uh, what we we have seen is that, uh, executed loas and esas, increase every quarter, uh, over the last, you know, call it 67 Quarters here. Um, we do continue to see active uh, uh, inter connection requests to uh, to connect to the system. Uh, again, we we do know that a lot of of that is limited by um, generation in in some of those States like Texas and, and Ohio, um, for our vertically integrated utilities. This is where we've been very forward-leaning in trying to secure, uh, those 13 gigs to ensure that we can meet, uh, that potential load. But I would say this is something that uh, we continue to see a lot of opportunity where large well capitalized, um, and not just hyperscalers, but industrial customers continue to, um, actively, try to interconnect our system. So,

Speaker #5: For our vertically integrated utilities, this is where we've been very forward-leaning in trying to secure those 13 gigs to ensure that we can meet that potential load.

I think you will continue to see that number continues to move and refine over the next several uh orders.

Great. Thank you.

Speaker #5: But I would say this is something where we continue to see a lot of opportunity, with large, well-capitalized—and not just hyperscalers, but industrial—customers continuing to actively try to interconnect to our system.

Hi David.

Your next question comes from the line of Jeremy tan with JP Morgan.

Speaker #5: So I think you will continue to see that number continue to move and refine over the next several quarters.

Hi, good morning. This is actually Aiden on for Jeremy. Um, just want to hone in on the 16.

Speaker #7: Great. Thank you.

Speaker #4: Thank you.

Speaker #5: Thanks, David.

Speaker #1: Your next question comes from the line of Jeremy Toney with JP Morgan.

Hey, good morning, just just want to hone in on the 16th offsets. Clearly, that's a, you know, very large number here and I guess this is, is there any way, like, how we should be thinking about translating that figure into annual Bill, mitigation across your key jurisdictions? And when customers should be kind, kind of seeing the most meaningful benefits,

Speaker #8: Hi, good morning. This is actually Aidan On for Jeremy. Just want to hone in on the 16. Hey, good morning. Just want to hone in on the 16 billion dollars of cost offsets.

Speaker #8: Clearly, that's a very large number here. And I guess this is is there any way how we should be thinking about translating that figure into annual bill mitigation across your key jurisdictions?

Speaker #8: And when customers should be kind of seeing the most meaningful benefit?

Speaker #5: Yeah, let me kind of take a first stab at that and then I'll also turn it over to Kate to see if she wants to add anything.

Speaker #5: But I think one of the biggest things that we want to point out is that $16 billion over the life of the contract is really just at our vertically integrated utilities, because it's really under the ESAs.

Yeah, let me uh, kind of take a first stab at that and then I'll talk also turn it over to Kate to see if she wants to add anything. But I think, you know, 1 of the biggest things that uh we want to point out is that 16 billion dollars over um, you know, the life of the uh the contract is really just at our vertically integrated utilities, um, because it's really under the esa. And so, from that perspective, what we've done is when we looked at the calculation of that and see what the up to 16 billion dollars of cost, offsets could be, um, it was really done on a a methodology spread across the vertically integrated utilities. Okay. Do you want to add anything? Hi, Aiden. It's Kate. The only thing I would add is

Speaker #5: And so from that perspective, what we've done is when we looked at the calculation of that and see what the up to 16 billion dollars of cost offsets could be, it was really done on a methodology spread across the vertically integrated utilities.

You know, we're starting to see that come through our regulatory process already right in Indiana. We've been very public about the fact that we will be fighting for a rate decrease. Uh, you've seen us have a rate decrease on the residential side in Ohio, so you're starting to see some of that come through our rate proceedings already.

And as we move further through the cycle here, we expect that Trend to continue.

Speaker #5: Kate, do you want to add anything?

Speaker #9: Hi Aidan, it's Kate. The only thing I would add is that we're starting to see that come through our regulatory process already. In Indiana, we've been very public about the fact that we will be filing for a rate decrease.

Speaker #9: You've seen us have a rate decrease on the residential side in Ohio. So you're starting to see some of that come through our rate proceedings already.

Speaker #9: And as we move further through the cycle here, we expect that trend to continue.

Speaker #8: Great, thanks. That's super helpful. And then for the 2026 guidance raise today, could you just explain if that is more so driven by the generation and marketing segment or also kind of reflecting higher load growth or earned ROEs than maybe expected?

Speaker #8: And then I guess how informative is your outlook for the general marketing segment like in the go forward years?

Speaker #5: Yeah, so on the guidance increase, we want to emphasize that where we are year to date through Q2 is really well within or actually it's in excess of what our plan was when we built the guidance range of the 615 to 645.

Speaker #5: And so we feel that's we've had a good strong start to the first half of the year. And then looking at the second half of the year, historically Q3 has typically been our strongest quarter.

Yeah. So um on the uh the guidance increase, we uh 1 want to emphasize that uh where we are year to date through Q2, um, is really well within or actually it's it's in excess of what our um, plan was when we built the, uh, the guidance range of the 615 to 645. And so we feel that's we we had a good strong start to the the first half of the year. And then looking at the second half of the Year historically, Q3 has typically been our strongest quarter and then we've got earnings uplift from certain regulatory matters, primarily in uh appco with the inflation based rates. Also in Swepco, Texas, and in PSO so that will phase in over uh, the second half of the year, which is giving us uh, great confidence to be able to raise the guidance range, uh, to uh, uh, to that increase in 10 cents. So,

Speaker #5: And then we've got earnings uplift from certain regulatory matters, primarily in APCO with the inflation-based rates, also in SWEPCO Texas, and in PSO, so that will phase in over the second half of the year which is giving us great confidence to be able to raise the guidance range to that increase in 10 cents.

Um, that's really kind of what what we're uh looking at right now.

Great, thank you. Appreciate the time today. I'll leave it there.

Thank you so much.

We have time for 1 more call.

And Michael lonegan from Barkley. Your line is open.

Hi. Thanks for taking my question.

Speaker #5: So that's really kind of what we're looking at right now.

Speaker #8: Great, thank you. I appreciate your time today. I'll leave it there.

Speaker #5: Thanks so much.

Speaker #1: We have time for one more call. And Michael Lonegan from Barclays, your line is open.

Um so the Oklahoma rate case settlement includes the the full transmission tracker that could improve your arms. Are we in the state? Was that contemplated in your plan when you set the earned? Are we target of 9 and a half percent that you reiterated today? Would you say that the target is now conservative? And, you know, Al also should we expect you to meaningfully, increase your capital in the state?

Speaker #10: Hi, thanks for taking my question. So the Oklahoma rate case settlement includes the full transmission tracker that could improve your earned ROE in the state.

Speaker #10: Was that contemplated in your plan when you set the earned ROE target of nine and a half percent that you reiterated today? Would you say that that target is now conservative and also should we expect you to meaningfully increase your capital in the state?

Speaker #5: So look, I would say I'm going to answer the second part of that question first. We continue to see robust growth across four key areas right now being Texas, Oklahoma, Ohio, and Indiana.

Speaker #5: And then, as Bill mentioned, we're starting to see a lot of opportunity around Virginia and West Virginia. But I wouldn't say specifically it was contemplated on the tractor in our guidance, because you kind of go into these rate case settlements and there's a lot of moving parts.

So, look, I would say, um, I'm going to answer the second part of that question first. Uh, we continue to see robust growth across 4 key areas right now, um, being Texas, Oklahoma, Ohio and Indiana. Um, and then, as Bill mentioned, we're starting to see a lot of opportunity around, uh, Virginia and West Virginia. But I wouldn't say specifically it was contemplated, uh, on the the tracker in our guidance uh, because, you know, you kind of go into these rate case settlements, um, and there's a lot of moving Parts. Um but with us getting the tracker and having the very slight decrease from 95 to 9.375 uh on what we've reached a potential settlement with some key interveners. Um I think those 2 largely offset each other pretty well. And in fact uh, we feel

Speaker #5: But with us getting the tractor and having the very slight decrease from 9.5 to 9.375 on what we've reached a potential settlement with some key intervenors, I think those two largely offset each other pretty well.

Very good about having a Tracker mechanism there. Um, so from that perspective, it it really is needs to be contemplated in in the full, um, mindset of of your, your kind of a give and take in these in these settlements.

Speaker #5: And, in fact, we feel very good about having a tractor mechanism there. So from that perspective, it really needs to be contemplated in the full mindset of your kind of give and take in these settlements.

Thank you. And then just wondering if you could talk about when you plan to file the rate case in Indiana, and if you expect the case to be Complicated by the affordability report in the state, I know you will be filing for a rate decrease, but the horde is only report establishes investigations to, you know, various aspects of rate making including Roe. I was just wondering how you were thinking about that with the rate case, you know, that will be going on during the investigations into rate making.

Speaker #10: Thank you. And then just wondering if you could talk about when you plan to file the rate case in Indiana and if you expect the case to be complicated by the affordability report in the state.

Speaker #10: I know you will be filing for a rate decrease, but the affordability report establishes investigations to various aspects of rate making, including ROE. So just wondering how you are thinking about that with the rate case that will be going on during the investigations into rate making.

Well first and foremost, Indiana remains really 1 of our premium jurisdictions, particularly given inm's ability to capture the economic development, there while simultaneously.

Balancing affordability. Um,

Speaker #5: Well, first and foremost, Indiana remains really one of our premium jurisdictions, particularly given I&M's ability to capture the economic development there while simultaneously balancing affordability particularly when we have historically low rates versus our other peers in that state.

Uh, particularly when we have historically low rates versus our other peers in that state. So um, as you noted, uh, we implemented rate reductions earlier this year and we've announced plans to file a base rate, decrease later on this Summer. That hasn't been scheduled yet, but it's uh, it's not far from now.

Speaker #5: So, as you noted, we implemented rate reductions earlier this year, and we've announced plans to file a base rate decrease later on this summer.

Speaker #5: That hasn't been scheduled yet, but it's not far from now. These rate reductions as Kate noted are made possible by the ability to track large load customers like Google and Microsoft and then shifting a significant amount of those fixed costs away from residential customers.

Speaker #5: And with regard to the studies and the other activities that are going on there, I want to be very clear in the fact that we have very strong relationships in that state with key stakeholders.

Speaker #5: In fact, in our discussions with the state officials, they've pointed to I&M as being a leading example of how a company can support economic growth while actually driving customer affordability.

Speaker #5: And they've cited I&M's plan rate decrease finally many times in those discussions. And so we look very forward to continue collaborating with all the stakeholders in the state to advance the outcomes that support economic development and enhance affordability for customers and mostly create long-term value for our folks there and continuing to do what the state wants us to do which is provide exceptional customer service and continue to try and reduce our costs.

Court the economic development and enhanced affordability for customers and mostly create long-term value for for our folks. There in continuing to do what the state wants us to do which is provide exceptional customer service and continue to try and reduce our costs and that's what we're doing.

Great. Thanks for taking my question.

Includes the question.

And answer session, I would like to turn the call back over to Bill Furman, president and CEO for closing remarks.

Speaker #5: And that's what we're committed to do in that state.

Speaker #10: Great, thanks for taking my question.

Yeah, look everybody really appreciate you joining us on today's call. I know there's a number of other earnings calls today, so we appreciate you joining ours. Uh, if you have any follow-up items, just please reach out to the IR team with your questions and we look forward to seeing you all later in the year at various investment companies.

Speaker #1: This concludes the question and answer session. I would like to turn the call back over to Bill Furman, president and CEO, for closing remarks.

Coming up so thank you for your continued interest in our company and uh this concludes our call. Thank you.

The telephone.

Speaker #5: Yeah, look everybody, really appreciate you joining us on today's call. I know there's a number of other earnings calls today, so we appreciate you joining ours.

Speaker #5: If you have any follow-up items, just please reach out to the IR team with your questions and we look forward to seeing you all later in the year at the various investor conferences coming up.

Speaker #5: So thank you for your continued interest in our company and this concludes our call. Thank you.

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Operator: Hello. Thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Electric Power Q2 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Andy Gurgol, Vice President of Investor Relations. You may go ahead.

Operator: Hello. Thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Electric Power Q2 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Andy Gurgol, Vice President of Investor Relations. You may go ahead.

Andy Gurgol: Good morning. Welcome to American Electric Power's Q2 2026 earnings call. A live webcast of this teleconference and slide presentation are available on our website under the Events and Presentation section. Joining me today are Bill Fehrman, Chairman, President, and Chief Executive Officer, and Trevor Mihalik, Chief Financial Officer. In addition, we have other members of our management team in the room, including Kate Dixon, Senior Vice President, Controller, and Chief Accounting Officer, and Darcy Reese, Vice President, Investor Relations. We will be making forward-looking statements during the call. Actual results may differ materially from those projected in any forward-looking statement we make today. Factors that could cause our actual results to differ materially are discussed in the company's most recent SEC filings. Please refer to the presentation slides that accompany this call for reconciliation to GAAP measures. We will take your questions following opening remarks.

Andy Gurgol: Good morning. Welcome to American Electric Power's Q2 2026 earnings call. A live webcast of this teleconference and slide presentation are available on our website under the Events and Presentation section. Joining me today are Bill Fehrman, Chairman, President, and Chief Executive Officer, and Trevor Mihalik, Chief Financial Officer. In addition, we have other members of our management team in the room, including Kate Dixon, Senior Vice President, Controller, and Chief Accounting Officer, and Darcy Reese, Vice President, Investor Relations. We will be making forward-looking statements during the call. Actual results may differ materially from those projected in any forward-looking statement we make today.

Andy Gurgol: Factors that could cause our actual results to differ materially are discussed in the company's most recent SEC filings. Please refer to the presentation slides that accompany this call for reconciliation to GAAP measures. We will take your questions following opening remarks. Please start on slides four and five as I hand the call over to Bill.

Andy Gurgol: Please start on slides four and five as I hand the call over to Bill.

Bill Fehrman: Good morning. Thank you for joining us for our Q2 2026 earnings call. As we close out the H1 of 2026, in my first two years at AEP, I'm very pleased with the progress we've made and the positive momentum we continue to build across the business. Four main themes are key to this progress, as shown on slide seven: enhancing our financial performance, driving affordability, capturing significant growth across our portfolio, and improving regulatory and operational outcomes. We are executing exceptionally well across each of these areas, strengthening our platform for outsized growth and long-term shareholder value creation. Turning to slide eight, I will start with our focus on enhancing AEP's financial performance. We delivered operating earnings of $1.36 per share or $742 million for the Q2.

Bill Fehrman: Good morning. Thank you for joining us for our Q2 2026 earnings call. As we close out the H1 of 2026, in my first two years at AEP, I'm very pleased with the progress we've made and the positive momentum we continue to build across the business. Four main themes are key to this progress, as shown on slide seven: enhancing our financial performance, driving affordability, capturing significant growth across our portfolio, and improving regulatory and operational outcomes. We are executing exceptionally well across each of these areas, strengthening our platform for outsized growth and long-term shareholder value creation. Turning to slide eight, I will start with our focus on enhancing AEP's financial performance. We delivered operating earnings of $1.36 per share or $742 million for the Q2.

Bill Fehrman: While I recognize our operating earnings are below last year at this stage, due to the 2025 transmission minority interest sale and timing-related tax items, I am highly confident in our business performance, so much so that we are raising our 2026 full year guidance to a range of $6.25 to $6.55 per share from our previous range of $6.15 to $6.45 per share. I also remain committed to supporting strong investment-grade credit metrics, including our targeted FFO to debt ratio of 14% to 15% as we move through this incredible period of growth that's expected to last well into the next decade. Trevor will go into more detail around the financial performance later on in the call. AEP's size, scale, and attractive geographic footprint continue to provide differential advantages as we drive affordability, all while executing on our robust growth strategy.

Bill Fehrman: While I recognize our operating earnings are below last year at this stage, due to the 2025 transmission minority interest sale and timing-related tax items, I am highly confident in our business performance, so much so that we are raising our 2026 full year guidance to a range of $6.25 to $6.55 per share from our previous range of $6.15 to $6.45 per share. I also remain committed to supporting strong investment-grade credit metrics, including our targeted FFO to debt ratio of 14% to 15% as we move through this incredible period of growth that's expected to last well into the next decade. Trevor will go into more detail around the financial performance later on in the call. AEP's size, scale, and attractive geographic footprint continue to provide differential advantages as we drive affordability, all while executing on our robust growth strategy.

Bill Fehrman: As one of the largest utility holding companies in the country, we benefit from economies of scale that enhance our ability to procure, build, operate, and finance infrastructure in a highly efficient way. Combined with the tremendous strides we have made improving regulatory outcomes and cost recovery mechanisms, these advantages help us deliver safe, reliable, and affordable energy service for customers while generating increasing value for our shareholders. Over the past two years, we have seen significant customer demand across our footprint, and AEP's focus on execution positions us to be one of the best to capture that growth. Just during Q2, AEP contracted an additional 6 GW of load, primarily driven by fully executed LOAs in Texas. Trevor will also provide more details on our incremental large load pipeline later on in the call.

Bill Fehrman: As one of the largest utility holding companies in the country, we benefit from economies of scale that enhance our ability to procure, build, operate, and finance infrastructure in a highly efficient way. Combined with the tremendous strides we have made improving regulatory outcomes and cost recovery mechanisms, these advantages help us deliver safe, reliable, and affordable energy service for customers while generating increasing value for our shareholders. Over the past two years, we have seen significant customer demand across our footprint, and AEP's focus on execution positions us to be one of the best to capture that growth. Just during Q2, AEP contracted an additional 6GW of load, primarily driven by fully executed LOAs in Texas. Trevor will also provide more details on our incremental large load pipeline later on in the call.

Bill Fehrman: To be clear, our future is extremely bright as it pertains to growth, exceptional counterparties, and incredibly supportive strategic partnerships that will allow us to deliver for our customers and our shareholders. As shared on our Q1 call, AEP's five-year capital plan from 2026 through 2030 is $78 billion, which is expected to result in nearly 11% rate base CAGR. To put this growth into perspective, AEP's five-year capital plan stood at just $38 billion only four years ago. This significant step change underscores the strength of our portfolio and differentiated organic growth seen across our expansive footprint. In summary, we intend to deliver, and our customers know it. That is why we have such a significant backlog of growth, which creates long-term upside for AEP over the next decade.

Bill Fehrman: To be clear, our future is extremely bright as it pertains to growth, exceptional counterparties, and incredibly supportive strategic partnerships that will allow us to deliver for our customers and our shareholders. As shared on our Q1 call, AEP's five-year capital plan from 2026 through 2030 is $78 billion, which is expected to result in nearly 11% rate base CAGR. To put this growth into perspective, AEP's five-year capital plan stood at just $38 billion only four years ago. This significant step change underscores the strength of our portfolio and differentiated organic growth seen across our expansive footprint. In summary, we intend to deliver, and our customers know it. That is why we have such a significant backlog of growth, which creates long-term upside for AEP over the next decade.

Bill Fehrman: We also shared on the Q1 call that we have line of sight to over $10 billion of incremental investments that are not included in the $78 billion, consisting of the fuel cells for the Wyoming project, the Piketon transmission opportunity, and incremental power generation. We continue to work with the hyperscaler on the Wyoming fuel cell initiative and remain highly optimistic about the project's advancement. Based on a contractual 30 June deadline, we reached an amendment to the agreement with the offtaker, which modified some key protection terms so that AEP is adequately compensated for their requested timing accommodations. Under the original December 2026 milestone, which remains intact, the hyperscaler has the ability to choose to deploy the fuel cells at an alternate location if the Cheyenne, Wyoming site does not advance.

Bill Fehrman: We also shared on the Q1 call that we have line of sight to over $10 billion of incremental investments that are not included in the $78 billion, consisting of the fuel cells for the Wyoming project, the Piketon transmission opportunity, and incremental power generation. We continue to work with the hyperscaler on the Wyoming fuel cell initiative and remain highly optimistic about the project's advancement. Based on a contractual 30 June deadline, we reached an amendment to the agreement with the offtaker, which modified some key protection terms so that AEP is adequately compensated for their requested timing accommodations. Under the original December 2026 milestone, which remains intact, the hyperscaler has the ability to choose to deploy the fuel cells at an alternate location if the Cheyenne, Wyoming site does not advance.

Bill Fehrman: If the December 2026 milestone is not met, or if there are additional requests to change the agreement terms, AEP retains financial protections for our shareholders. Separately, we continue to advance the Piketon transmission opportunity in Ohio and are working towards definitive agreements with the prospective offtaker, SP Energy. Following execution of definitive agreements, the projects would proceed through the required regulatory review and approval process. This project further highlights the strength of AEP's transmission franchise and, in particular, our industry-leading expertise in developing and operating 765 kV transmission infrastructure. As we have discussed previously, AEP has taken a very proactive approach over the past two years to secure critical gas-fired turbine generators, leveraging our scale as one of the nation's largest owner operators of electric generation, industry expertise, and long-standing supplier relationships. Just over this past quarter, we have secured an additional 3 gigawatts of turbines.

Bill Fehrman: If the December 2026 milestone is not met, or if there are additional requests to change the agreement terms, AEP retains financial protections for our shareholders. Separately, we continue to advance the Piketon transmission opportunity in Ohio and are working towards definitive agreements with the prospective offtaker, SP Energy. Following execution of definitive agreements, the projects would proceed through the required regulatory review and approval process. This project further highlights the strength of AEP's transmission franchise and, in particular, our industry-leading expertise in developing and operating 765 kV transmission infrastructure. As we have discussed previously, AEP has taken a very proactive approach over the past two years to secure critical gas-fired turbine generators, leveraging our scale as one of the nation's largest owner operators of electric generation, industry expertise, and long-standing supplier relationships. Just over this past quarter, we have secured an additional 3 gigawatts of turbines.

Bill Fehrman: This increases our total secured turbine capacity to approximately 13 gigawatts for deployment through 2031. These strategic procurements position us to meet the growing energy needs of our customers while providing greater certainty around future resource deployment in AEP's footprint. When we introduce a new five-year plan for 2027 through 2031 during our Q3 earnings call, these generation investments are expected to be an important driver of our long-term growth outlook. In addition, we are leveraging our sizable market position and strategic manufacturer relationships to secure up to 10 gigawatts of incremental turbine capacity through 2035. This level of access to critical equipment underscores a key competitive advantage for AEP and enhances our ability to support customer growth, strengthen reliability, and create long-term value for shareholders. Regarding nuclear, we continue to advance an early-stage nuclear generation strategy.

Bill Fehrman: This increases our total secured turbine capacity to approximately 13 gigawatts for deployment through 2031. These strategic procurements position us to meet the growing energy needs of our customers while providing greater certainty around future resource deployment in AEP's footprint. When we introduce a new five-year plan for 2027 through 2031 during our Q3 earnings call, these generation investments are expected to be an important driver of our long-term growth outlook. In addition, we are leveraging our sizable market position and strategic manufacturer relationships to secure up to 10 gigawatts of incremental turbine capacity through 2035. This level of access to critical equipment underscores a key competitive advantage for AEP and enhances our ability to support customer growth, strengthen reliability, and create long-term value for shareholders. Regarding nuclear, we continue to advance an early-stage nuclear generation strategy.

Bill Fehrman: This is being driven by demand from potential customers who value alternative forms of long-term base load generation to support their rapidly growing demand. While we want to be proactive and work with customers to jointly develop their projects on a fee-based arrangement that limits risk for AEP, we will remain highly disciplined to ensure that we are protecting our existing customers, shareholders, and balance sheet. Please turn to slide nine. Affordability remains a core tenet of our customer strategy. As new large load comes online, it enables a shift of fixed costs currently borne by existing customers to new data centers and hyperscalers.

Bill Fehrman: This is being driven by demand from potential customers who value alternative forms of long-term base load generation to support their rapidly growing demand. While we want to be proactive and work with customers to jointly develop their projects on a fee-based arrangement that limits risk for AEP, we will remain highly disciplined to ensure that we are protecting our existing customers, shareholders, and balance sheet. Please turn to slide nine. Affordability remains a core tenet of our customer strategy. As new large load comes online, it enables a shift of fixed costs currently borne by existing customers to new data centers and hyperscalers.

Bill Fehrman: As we noted on our Q1 call in May, we are projecting fixed cost offsets for residential customers of up to $16 billion in our vertically integrated utilities as a result of new large load interconnections that are supported by fully executed take-or-pay electric service agreements. The benefits of this changing customer mix are already being realized. Together with our disciplined focus on operational efficiency, these offsets have supported planned base rate reductions in select AEP operating companies. For example, an order has been received in Ohio, and Indiana Michigan Power plans to submit a base rate reduction filing later this summer, reinforcing our commitment to delivering safe, reliable, and affordable service while supporting economic growth. We are also continuing to access sources of lower cost capital, including federal grants and U.S. Department of Energy loan guarantees to further drive customer savings.

Bill Fehrman: As we noted on our Q1 call in May, we are projecting fixed cost offsets for residential customers of up to $16 billion in our vertically integrated utilities as a result of new large load interconnections that are supported by fully executed take-or-pay electric service agreements. The benefits of this changing customer mix are already being realized. Together with our disciplined focus on operational efficiency, these offsets have supported planned base rate reductions in select AEP operating companies. For example, an order has been received in Ohio, and Indiana Michigan Power plans to submit a base rate reduction filing later this summer, reinforcing our commitment to delivering safe, reliable, and affordable service while supporting economic growth. We are also continuing to access sources of lower cost capital, including federal grants and U.S. Department of Energy loan guarantees to further drive customer savings.

Bill Fehrman: Earlier this month, AEP Texas secured a DOE loan guarantee for up to $3.3 billion to finance a portfolio of transmission projects spanning approximately 2,800 miles, which is expected to deliver an estimated $685 million in customer savings over the life of the loan through lower financing costs. With this financing, AEP has now secured approximately $5 billion in DOE loans across our portfolio, supporting an expected $1 billion in projected customer savings. This, combined with almost $400 million in awarded DOE grants, are expected to deliver nearly $1.4 billion in estimated customer benefits over the life of the loans and grants. Turning to slide 10, we continue to obtain constructive regulatory outcomes across our portfolio with notable progress achieved this past quarter, which should improve cost recovery and our earned ROEs over time.

Bill Fehrman: Earlier this month, AEP Texas secured a DOE loan guarantee for up to $3.3 billion to finance a portfolio of transmission projects spanning approximately 2,800 miles, which is expected to deliver an estimated $685 million in customer savings over the life of the loan through lower financing costs. With this financing, AEP has now secured approximately $5 billion in DOE loans across our portfolio, supporting an expected $1 billion in projected customer savings. This, combined with almost $400 million in awarded DOE grants, are expected to deliver nearly $1.4 billion in estimated customer benefits over the life of the loans and grants. Turning to slide 10, we continue to obtain constructive regulatory outcomes across our portfolio with notable progress achieved this past quarter, which should improve cost recovery and our earned ROEs over time.

Bill Fehrman: In Ohio, we secured commission approval of the distribution base case settlement, which includes an affordability measure featuring a base rate decrease driven by the timing of regulatory liabilities being passed back to customers. AEP Ohio also secured a 9.84% ROE, up from 9.7%. This, coupled with the forward-looking test year in the next rate case, will improve cost recovery and their earned ROE. In Texas, SWEPCO reached a base rate case settlement in principle with key stakeholders in late April, which positions us well to advance our growth plans and enhance safe, reliable, and affordable electric service for customers. In Oklahoma, PSO filed a base rate case settlement with several key interveners.

Bill Fehrman: In Ohio, we secured commission approval of the distribution base case settlement, which includes an affordability measure featuring a base rate decrease driven by the timing of regulatory liabilities being passed back to customers. AEP Ohio also secured a 9.84% ROE, up from 9.7%. This, coupled with the forward-looking test year in the next rate case, will improve cost recovery and their earned ROE. In Texas, SWEPCO reached a base rate case settlement in principle with key stakeholders in late April, which positions us well to advance our growth plans and enhance safe, reliable, and affordable electric service for customers. In Oklahoma, PSO filed a base rate case settlement with several key interveners.

Bill Fehrman: While the proposed authorized ROE decreases slightly from 9.5% to 9.375%, the settlement includes an enhanced transmission cost rider, which we expect to result in a meaningful improvement in PSO's earned ROE. PSO also received a separate order in May approving its request to procure 1.3 gigawatts of generation resources, supporting reliable and affordable service for our customers. Taken together, these outcomes support continued investment in Oklahoma while keeping customer affordability front and center. In Virginia, we completed a $1.4 billion securitization in May, enabling APCO to file its lowest increase in a base rate request in nearly 30 years, driving further customer affordability measures. Additionally, in June, we received approval in Virginia for our proposed large load tariff, bringing the total number of approved tariffs across the portfolio to five.

Bill Fehrman: While the proposed authorized ROE decreases slightly from 9.5% to 9.375%, the settlement includes an enhanced transmission cost rider, which we expect to result in a meaningful improvement in PSO's earned ROE. PSO also received a separate order in May approving its request to procure 1.3 gigawatts of generation resources, supporting reliable and affordable service for our customers. Taken together, these outcomes support continued investment in Oklahoma while keeping customer affordability front and center. In Virginia, we completed a $1.4 billion securitization in May, enabling APCO to file its lowest increase in a base rate request in nearly 30 years, driving further customer affordability measures. Additionally, in June, we received approval in Virginia for our proposed large load tariff, bringing the total number of approved tariffs across the portfolio to five.

Bill Fehrman: We have three additional filings pending for proposed large load tariffs, Our teams are working closely with key stakeholders to advance them through the approval process. Collectively, the constructive regulatory outcomes we have achieved this quarter and over the last couple of years reflect a more focused engagement strategy across our footprint by listening to what our customers, regulators, and states want. That approach is helping us achieve balanced outcomes that create value for our shareholders and certainly for our customers. In summary, AEP is entering the second half of the year with extremely strong momentum, building on the significant progress we have achieved since I joined two years ago. We are serving growing customer demand, investing in critical infrastructure, keeping affordability central to our approach, and maintaining the financial discipline needed to create long-term value for our customers and shareholders. Let me be very clear.

Bill Fehrman: We have three additional filings pending for proposed large load tariffs, Our teams are working closely with key stakeholders to advance them through the approval process. Collectively, the constructive regulatory outcomes we have achieved this quarter and over the last couple of years reflect a more focused engagement strategy across our footprint by listening to what our customers, regulators, and states want. That approach is helping us achieve balanced outcomes that create value for our shareholders and certainly for our customers. In summary, AEP is entering the second half of the year with extremely strong momentum, building on the significant progress we have achieved since I joined two years ago.

Bill Fehrman: We are serving growing customer demand, investing in critical infrastructure, keeping affordability central to our approach, and maintaining the financial discipline needed to create long-term value for our customers and shareholders. Let me be very clear. AEP now has significant management and leadership depth. Our board is highly supportive, and with our new board additions, growing in their expertise that is directly tied to our long-term strategic plan. This team is second to none and well-suited to deliver this impressive plan that will drive significant long-term value for investors. Our future is all about growth well into the next decade. That is what is expected of me, and that is what I intend to deliver with this team. I will now turn the call over to Trevor, who will review our Q2 performance drivers and additional financial and business updates.

Bill Fehrman: AEP now has significant management and leadership depth. Our board is highly supportive, and with our new board additions, growing in their expertise that is directly tied to our long-term strategic plan. This team is second to none and well-suited to deliver this impressive plan that will drive significant long-term value for investors. Our future is all about growth well into the next decade. That is what is expected of me, and that is what I intend to deliver with this team. I will now turn the call over to Trevor, who will review our Q2 performance drivers and additional financial and business updates.

Trevor Mihalik: Thanks, Bill. I will begin with our financial results and then turn to load growth, the capital plan, and our financing strategy before I conclude with some final thoughts. Starting on slide 12 of the presentation. As Bill mentioned, for the Q2 2026, AEP delivered operating earnings of $1.36 per share, compared to $1.43 per share in the Q2 2025. At a high level, our Q2 results were primarily impacted by several timing-related items, most notably Transmission Holdco performance and income taxes. Transmission Holdco earnings reflect the impact of the 2025 minority interest sale, which closed in June of last year.

Trevor Mihalik: Thanks, Bill. I will begin with our financial results and then turn to load growth, the capital plan, and our financing strategy before I conclude with some final thoughts. Starting on slide 12 of the presentation. As Bill mentioned, for the Q2 2026, AEP delivered operating earnings of $1.36 per share, compared to $1.43 per share in the Q2 2025. At a high level, our Q2 results were primarily impacted by several timing-related items, most notably Transmission Holdco performance and income taxes. Transmission Holdco earnings reflect the impact of the 2025 minority interest sale, which closed in June of last year.

Trevor Mihalik: While this timing affected year-over-year comparability in the Q2, we expect Transmission Holdco earnings to provide a favorable year-over-year contribution by the end of 2026, driven by the continued investment in infrastructure. In addition, the Corporate and Other segment includes some income tax timing items related to the consolidated impacts of the effective tax rate, which are expected to reverse by the end of the year. The same transmission sale and timing-related tax items are reflected in our year-to-date performance on slide 13. Year-to-date operating earnings were $3.01 per share, compared to $2.98 per share during the same period last year. Overall, our underlying results continue to demonstrate the strength of the business. Earnings benefited from constructive regulatory outcomes, higher normalized sales, and growth in transmission revenues.

Trevor Mihalik: While this timing affected year-over-year comparability in the Q2, we expect Transmission Holdco earnings to provide a favorable year-over-year contribution by the end of 2026, driven by the continued investment in infrastructure. In addition, the Corporate and Other segment includes some income tax timing items related to the consolidated impacts of the effective tax rate, which are expected to reverse by the end of the year. The same transmission sale and timing-related tax items are reflected in our year-to-date performance on slide 13. Year-to-date operating earnings were $3.01 per share, compared to $2.98 per share during the same period last year. Overall, our underlying results continue to demonstrate the strength of the business. Earnings benefited from constructive regulatory outcomes, higher normalized sales, and growth in transmission revenues.

Trevor Mihalik: These drivers were partially offset by prior year's favorable weather and this year's increased O&M spend to enhance system reliability as we continue to execute on our commitment to provide safe and reliable service to our customers. As Bill discussed, we continue to make material progress across a number of regulatory proceedings throughout our footprint. Our regulated earned ROE for the quarter was 9.2%, consistent with our forecasted expectations for the year-end 2026. Through continued execution of our regulatory strategy centered on customer affordability, along with structural rate-making improvements such as the UTM in Texas, SB 998 in Oklahoma, and a forward-looking test year in Ohio starting in 2028, we believe there is a strong path for regulated earned ROE to improve to 9.5% by 2030.

Trevor Mihalik: These drivers were partially offset by prior year's favorable weather and this year's increased O&M spend to enhance system reliability as we continue to execute on our commitment to provide safe and reliable service to our customers. As Bill discussed, we continue to make material progress across a number of regulatory proceedings throughout our footprint. Our regulated earned ROE for the quarter was 9.2%, consistent with our forecasted expectations for the year-end 2026. Through continued execution of our regulatory strategy centered on customer affordability, along with structural rate-making improvements such as the UTM in Texas, SB 998 in Oklahoma, and a forward-looking test year in Ohio starting in 2028, we believe there is a strong path for regulated earned ROE to improve to 9.5% by 2030.

Trevor Mihalik: The progress we are seeing across our regulatory initiatives. Continued growth across our footprint and strong execution year to date have increased our confidence in delivering strong 2026 financial performance. As a result, we raised our 2026 operating earnings guidance range to $6.25 to $6.55 per share. We're also reaffirming our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS CAGR of greater than 9% through 2030 based off of our 2025 guidance midpoints and supported by the $78 billion capital plan. Turning to slide 14. One of the most important drivers of our sustained long-term growth outlook continues to be large load demand. We now have 69 gigawatts of contracted load additions through 2030, up 6 gigawatts from the 63 disclosed last quarter, all supported by a combination of fully executed ESAs and LOAs.

Trevor Mihalik: The progress we are seeing across our regulatory initiatives. Continued growth across our footprint and strong execution year to date have increased our confidence in delivering strong 2026 financial performance. As a result, we raised our 2026 operating earnings guidance range to $6.25 to $6.55 per share. We're also reaffirming our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS CAGR of greater than 9% through 2030 based off of our 2025 guidance midpoints and supported by the $78 billion capital plan. Turning to slide 14. One of the most important drivers of our sustained long-term growth outlook continues to be large load demand. We now have 69 gigawatts of contracted load additions through 2030, up 6 gigawatts from the 63 disclosed last quarter, all supported by a combination of fully executed ESAs and LOAs.

Trevor Mihalik: This represents another meaningful increase in customer commitments and further reinforces our confidence in the strength and durability of demand across our diverse, high-growth service territory. From a geographic perspective, Texas continues to represent our largest opportunity with 45 gigawatts of contracted load through 2030. Ohio accounts for 12 gigawatts, followed by Oklahoma, Indiana, Kentucky, Louisiana, and Virginia, which combined make up the remaining 12 gigawatts. While the scale of this opportunity is significant, it is equally important to highlight the protections embedded within our growth strategy. Our large load tariffs require customers to make long-term commitments and support the investments necessary to serve their demand. That structure helps ensure that this growth drives value creation for shareholders, while also supporting affordability for existing customers by bringing new load onto the system and expanding the base over which costs can be shared.

Trevor Mihalik: This represents another meaningful increase in customer commitments and further reinforces our confidence in the strength and durability of demand across our diverse, high-growth service territory. From a geographic perspective, Texas continues to represent our largest opportunity with 45 gigawatts of contracted load through 2030. Ohio accounts for 12 gigawatts, followed by Oklahoma, Indiana, Kentucky, Louisiana, and Virginia, which combined make up the remaining 12 gigawatts. While the scale of this opportunity is significant, it is equally important to highlight the protections embedded within our growth strategy. Our large load tariffs require customers to make long-term commitments and support the investments necessary to serve their demand. That structure helps ensure that this growth drives value creation for shareholders, while also supporting affordability for existing customers by bringing new load onto the system and expanding the base over which costs can be shared.

Trevor Mihalik: These tariff frameworks also provide strong protections against project delays and changing development timelines, giving us confidence that we can capture this growth while appropriately managing potential risk. The quality of the customer base is another important differentiator for AEP. The vast majority of these projects are being advanced by well-capitalized hyperscalers and large industrial customers with significant financial resources and long-term infrastructure needs. As we have previously emphasized, our focus is not simply on the volume of the contracted load, but also on the quality, durability, and creditworthiness of the customers who are driving that growth. Turning to slide 15. As I previously mentioned, ERCOT continues to represent the largest source of incremental demand across the footprint, with 45 gigawatts of Senate Bill 6 compliance contracted load additions in AEP Texas through 2030.

Trevor Mihalik: These tariff frameworks also provide strong protections against project delays and changing development timelines, giving us confidence that we can capture this growth while appropriately managing potential risk. The quality of the customer base is another important differentiator for AEP. The vast majority of these projects are being advanced by well-capitalized hyperscalers and large industrial customers with significant financial resources and long-term infrastructure needs. As we have previously emphasized, our focus is not simply on the volume of the contracted load, but also on the quality, durability, and creditworthiness of the customers who are driving that growth. Turning to slide 15. As I previously mentioned, ERCOT continues to represent the largest source of incremental demand across the footprint, with 45 gigawatts of Senate Bill 6 compliance contracted load additions in AEP Texas through 2030.

Trevor Mihalik: As a reminder, our approach to forecasting load, including ERCOT load, is both rigorous and conservative and is supported by fully executed LOAs in Texas. These agreements require customers to secure land, complete interconnection studies, provide detailed load forecasts, and fund the associated infrastructure investments. As a result, the projects reflected in our incremental contracted load have progressed through a disciplined filtration process and represent credible customer commitments with a high degree of confidence. Additionally, we view the recent approval of ERCOT's Batch framework as a meaningful step forward. The new framework is designed to better distinguish committed projects from more speculative requests and provide greater visibility into the timing of large load opportunities. A key milestone occurred last week when we submitted 45 gigawatts of projects into ERCOT's Batch Zero process, forecasted between now and 2032.

Trevor Mihalik: As a reminder, our approach to forecasting load, including ERCOT load, is both rigorous and conservative and is supported by fully executed LOAs in Texas. These agreements require customers to secure land, complete interconnection studies, provide detailed load forecasts, and fund the associated infrastructure investments. As a result, the projects reflected in our incremental contracted load have progressed through a disciplined filtration process and represent credible customer commitments with a high degree of confidence. Additionally, we view the recent approval of ERCOT's Batch framework as a meaningful step forward. The new framework is designed to better distinguish committed projects from more speculative requests and provide greater visibility into the timing of large load opportunities. A key milestone occurred last week when we submitted 45 gigawatts of projects into ERCOT's Batch Zero process, forecasted between now and 2032.

Trevor Mihalik: ERCOT is currently reviewing those submissions and is expected to determine eligibility for inclusion in the Batch Zero study on 7 August. Based on the quality of the projects we submitted and the work completed with our customers, we believe that the projects are well-positioned and qualify for inclusion in a Batch Zero category. In fact, just over the past month, we have collected nearly $2 billion in cash or collateral for load commitments in ERCOT, which represents all the required credit support for the full 45 gigawatts included in AEP Texas' Batch Zero filing. The 45 gigawatts of Batch Zero loads submitted by AEP Texas, all backed by fully executed LOAs and meaningful credit support, underscores the strength and credibility of demand in Texas. Importantly, our $78 billion capital plan does not anticipate this magnitude of load growth.

Trevor Mihalik: ERCOT is currently reviewing those submissions and is expected to determine eligibility for inclusion in the Batch Zero study on 7 August. Based on the quality of the projects we submitted and the work completed with our customers, we believe that the projects are well-positioned and qualify for inclusion in a Batch Zero category. In fact, just over the past month, we have collected nearly $2 billion in cash or collateral for load commitments in ERCOT, which represents all the required credit support for the full 45 gigawatts included in AEP Texas' Batch Zero filing. The 45 gigawatts of Batch Zero loads submitted by AEP Texas, all backed by fully executed LOAs and meaningful credit support, underscores the strength and credibility of demand in Texas. Importantly, our $78 billion capital plan does not anticipate this magnitude of load growth.

Trevor Mihalik: While ERCOT's review process, available generation, and the timeline for transmission development may impact the timing of certain interconnections, these customers remain committed to connecting to our system. If some of the projects are pushed out, that does not diminish the investment opportunity. In fact, it provides greater confidence that AEP Texas' growth story will continue well into the next decade. The bottom line is that the demand fundamentals in Texas remain exceptionally strong, and the additional visibility we are gaining continues to reinforce the robust long-term growth projected there. Turning to slide 16. Let me conclude with a few brief summary remarks regarding our significant progress achieved across the four key themes that reinforce our positive outlook and position us for continued success. First, enhancing financial performance. We continue to execute on our financial plan and remain focused on delivering consistent results for our stakeholders.

Trevor Mihalik: While ERCOT's review process, available generation, and the timeline for transmission development may impact the timing of certain interconnections, these customers remain committed to connecting to our system. If some of the projects are pushed out, that does not diminish the investment opportunity. In fact, it provides greater confidence that AEP Texas' growth story will continue well into the next decade. The bottom line is that the demand fundamentals in Texas remain exceptionally strong, and the additional visibility we are gaining continues to reinforce the robust long-term growth projected there. Turning to slide 16. Let me conclude with a few brief summary remarks regarding our significant progress achieved across the four key themes that reinforce our positive outlook and position us for continued success. First, enhancing financial performance. We continue to execute on our financial plan and remain focused on delivering consistent results for our stakeholders.

Trevor Mihalik: Based on our year-to-date performance and the trends we're seeing across the business, we raised our 2026 operating earnings guidance by $0.10 per share. We have reaffirmed our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS CAGR of greater than 9% through 2030 based on the $78 billion capital plan. During Q2, we also substantially de-risked our financing plan through the successful execution of our $3 billion marketed equity transaction, which is expected to be settled under forward contracts by May 2028. With this transaction, we have addressed all the anticipated marketed equity needs to support the $78 billion five-year capital plan. We are now well-positioned to focus on the robust growth we are seeing across our footprint.

Trevor Mihalik: Based on our year-to-date performance and the trends we're seeing across the business, we raised our 2026 operating earnings guidance by $0.10 per share. We have reaffirmed our annual operating earnings growth rate of 7% to 9% and continue to expect an operating EPS CAGR of greater than 9% through 2030 based on the $78 billion capital plan. During Q2, we also substantially de-risked our financing plan through the successful execution of our $3 billion marketed equity transaction, which is expected to be settled under forward contracts by May 2028. With this transaction, we have addressed all the anticipated marketed equity needs to support the $78 billion five-year capital plan. We are now well-positioned to focus on the robust growth we are seeing across our footprint.

Trevor Mihalik: As we evaluate incremental investment opportunities, we will continue to assess a broad set of financing tools with a focus on shareholder value. We remain committed to supporting strong investment-grade credit metrics, including our targeted FFO to debt ratio of 14% to 15%. Second, driving customer affordability remains a key priority. The large load frameworks we have established across our jurisdictions support rapid growth while creating meaningful benefits for existing customers, including up to $16 billion of projected cost offsets. In addition, our DOE financing initiatives are expected to generate significant customer savings of $1.4 billion while supporting needed infrastructure investment. Third, capturing system-wide growth. Customer demand continues to accelerate as we now have 69 gigawatts of contracted load additions through 2030, supported by high-quality, well-capitalized customers. This demand continues to provide a significant runway for future investment and growth across our service territory.

Trevor Mihalik: As we evaluate incremental investment opportunities, we will continue to assess a broad set of financing tools with a focus on shareholder value. We remain committed to supporting strong investment-grade credit metrics, including our targeted FFO to debt ratio of 14% to 15%. Second, driving customer affordability remains a key priority. The large load frameworks we have established across our jurisdictions support rapid growth while creating meaningful benefits for existing customers, including up to $16 billion of projected cost offsets. In addition, our DOE financing initiatives are expected to generate significant customer savings of $1.4 billion while supporting needed infrastructure investment. Third, capturing system-wide growth. Customer demand continues to accelerate as we now have 69 gigawatts of contracted load additions through 2030, supported by high-quality, well-capitalized customers. This demand continues to provide a significant runway for future investment and growth across our service territory.

Trevor Mihalik: We also look forward to obtaining additional clarity on the timing of ERCOT load as the batch process review continues. We continue to advance our $78 billion base capital plan and the $10 billion of opportunities beyond the base plan, including the fuel cells for the Wyoming project, the Piketon transmission opportunity, and incremental power generation. We look forward to providing a more comprehensive update on our capital plan, financing strategy, and growth trajectory as part of our regular Q3 financing plan update. Finally, we remain focused on improving regulatory and operational outcomes. Whether it's securing a significant amount of generation resources, advancing critical transmission investments, strengthening regulatory outcomes and relationships, or preparing the grid for unprecedented low growth, our teams are committed to delivering results for our customers and our shareholders while maintaining operational excellence.

Trevor Mihalik: We also look forward to obtaining additional clarity on the timing of ERCOT load as the batch process review continues. We continue to advance our $78 billion base capital plan and the $10 billion of opportunities beyond the base plan, including the fuel cells for the Wyoming project, the Piketon transmission opportunity, and incremental power generation. We look forward to providing a more comprehensive update on our capital plan, financing strategy, and growth trajectory as part of our regular Q3 financing plan update. Finally, we remain focused on improving regulatory and operational outcomes. Whether it's securing a significant amount of generation resources, advancing critical transmission investments, strengthening regulatory outcomes and relationships, or preparing the grid for unprecedented low growth, our teams are committed to delivering results for our customers and our shareholders while maintaining operational excellence.

Trevor Mihalik: Taken altogether, we believe AEP is one of the best-positioned utilities to capitalize on the generational growth occurring across the electric sector, which is supported by a robust capital investment pipeline, a disciplined financing strategy, diverse footprint, and strong execution across the business. With that, I will now ask the operator to please open the line for questions.

Trevor Mihalik: Taken altogether, we believe AEP is one of the best-positioned utilities to capitalize on the generational growth occurring across the electric sector, which is supported by a robust capital investment pipeline, a disciplined financing strategy, diverse footprint, and strong execution across the business. With that, I will now ask the operator to please open the line for questions.

Operator: At this time, I would like to remind everyone, if you would like to ask a question, please press star one on your telephone keypad. Your first question comes from the line of Shar Pourreza with Wells Fargo. You may go ahead.

Operator: At this time, I would like to remind everyone, if you would like to ask a question, please press star one on your telephone keypad. Your first question comes from the line of Shar Pourreza with Wells Fargo. You may go ahead.

Shar Pourreza: Hey, guys. Good morning.

Shar Pourreza: Hey, guys. Good morning.

Trevor Mihalik: Morning, Shar.

Bill Fehrman: Morning, Shar.

Shar Pourreza: Morning, Bill. Just in West Virginia, I know one of your peers is seeing obviously a lot of growth from hyperscalers and potentially looking at a GenCo structure. Just, I guess given the governor's goals around new gas, I guess how are you thinking about potential opportunities to serve hyperscalers in the state using maybe an alternative financing structure as we're kind of thinking about speed to market, like bypassing the CPCN process? Is a GenCo structure a potential opportunity you see down the road in West Virginia and maybe some of the other states?

Shar Pourreza: Morning, Bill. Just in West Virginia, I know one of your peers is seeing obviously a lot of growth from hyperscalers and potentially looking at a GenCo structure. Just, I guess given the governor's goals around new gas, I guess how are you thinking about potential opportunities to serve hyperscalers in the state using maybe an alternative financing structure as we're kind of thinking about speed to market, like bypassing the CPCN process? Is a GenCo structure a potential opportunity you see down the road in West Virginia and maybe some of the other states?

Trevor Mihalik: Yeah, thanks. Thanks for that question, Shar. We are clearly looking into the GenCo structure. We're finding it very intriguing, I think it will obviously be something we're closely analyzing. At a broader point with regards to West Virginia, really love where we're at in that state. I think you probably saw we already announced one project in West Virginia for about 1.2 gigs, we've got a number of other projects that are heading down the pathway to support the governor's goals of his 50 by 50 targets. I really like where we're at in West Virginia. We've made a tremendous change in atmosphere there. We're very aligned with all of the stakeholders, I think as the next several months go on, you'll see some pretty significant opportunities come to life there.

Bill Fehrman: Yeah, thanks. Thanks for that question, Shar. We are clearly looking into the GenCo structure. We're finding it very intriguing, I think it will obviously be something we're closely analyzing. At a broader point with regards to West Virginia, really love where we're at in that state. I think you probably saw we already announced one project in West Virginia for about 1.2 gigs, we've got a number of other projects that are heading down the pathway to support the governor's goals of his 50 by 50 targets. I really like where we're at in West Virginia. We've made a tremendous change in atmosphere there. We're very aligned with all of the stakeholders, I think as the next several months go on, you'll see some pretty significant opportunities come to life there.

Shar Pourreza: Got it. Okay, that's perfect. Then just maybe around the guidance and disclosures. Obviously, you guys have Batch Zero that goes beyond, some of that goes beyond 2030. At Batch One, you have 195 GW figure out there. I guess, is there a point where you would think about maybe enhancing your disclosures? Some of your peers talk about EPS ranges for every gigawatt of new large load that comes on. I guess is there a point where you move away from the 7% to 9% longer term number out there? Clearly, Bill, what you're displaying is you guys are nine plus and a huge amount of CapEx. I guess is there a way you can provide a little bit more visibility beyond 2030 longer term, just to give investors some more confidence that this isn't sort of a short-term phenomenon? Thanks.

Shar Pourreza: Got it. Okay, that's perfect. Then just maybe around the guidance and disclosures. Obviously, you guys have Batch Zero that goes beyond, some of that goes beyond 2030. At Batch One, you have 195 GW figure out there. I guess, is there a point where you would think about maybe enhancing your disclosures? Some of your peers talk about EPS ranges for every gigawatt of new large load that comes on. I guess is there a point where you move away from the 7% to 9% longer term number out there? Clearly, Bill, what you're displaying is you guys are nine plus and a huge amount of CapEx. I guess is there a way you can provide a little bit more visibility beyond 2030 longer term, just to give investors some more confidence that this isn't sort of a short-term phenomenon? Thanks.

Bill Fehrman: Yeah, appreciate that viewpoint. I'll let Trevor hop in here to finish up on this question. There's a number of folks who have been quizzing us, sort of like, what's our cost per line mile of transmission or cost per kilowatt of a plant? I've sort of kept our team from looking at it in that way because there's so many different variables across these projects, that trying to put a number in place like that on some metric, I don't think is really all that accurate and meaningful. I'm really keeping our team focused on these things at a project-by-project basis. As far as sort of additional disclosures, Trevor, maybe give your viewpoint on that.

Bill Fehrman: Yeah, appreciate that viewpoint. I'll let Trevor hop in here to finish up on this question. There's a number of folks who have been quizzing us, sort of like, what's our cost per line mile of transmission or cost per kilowatt of a plant? I've sort of kept our team from looking at it in that way because there's so many different variables across these projects, that trying to put a number in place like that on some metric, I don't think is really all that accurate and meaningful. I'm really keeping our team focused on these things at a project-by-project basis. As far as sort of additional disclosures, Trevor, maybe give your viewpoint on that.

Trevor Mihalik: Sure, Bill. Hey, Shar.

Trevor Mihalik: Sure, Bill. Hey, Shar.

Shar Pourreza: Hey, Trevor.

Shar Pourreza: Hey, Trevor.

Trevor Mihalik: With regards to the growth rate and beyond 2030, we really are looking forward to laying out our 2027 to 2031 plan. As you say, we've got that 195 gigs of folks trying to actively interconnect to the queue, and I think what this really does is it shows that we have a pretty long runway of continued outsized CapEx growth well into the next decade. From that perspective, we will continue to generally talk about what the five-year growth rate is. Then, we will contemplate as to what we want to do in Q3 when we roll out the new revised plan to maybe give some line of sight into anything beyond that. Again, I think right now what we remain very committed to is this greater than 9% growth rate over that five-year period.

Trevor Mihalik: With regards to the growth rate and beyond 2030, we really are looking forward to laying out our 2027 to 2031 plan. As you say, we've got that 195 gigs of folks trying to actively interconnect to the queue, and I think what this really does is it shows that we have a pretty long runway of continued outsized CapEx growth well into the next decade. From that perspective, we will continue to generally talk about what the five-year growth rate is.

Trevor Mihalik: Then, we will contemplate as to what we want to do in Q3 when we roll out the new revised plan to maybe give some line of sight into anything beyond that. Again, I think right now what we remain very committed to is this greater than 9% growth rate over that five-year period. Again, seeing the amount of CapEx around generation transmission and distribution extending well into the next decade.

Trevor Mihalik: Again, seeing the amount of CapEx around generation transmission and distribution extending well into the next decade.

Shar Pourreza: Got it. Okay, that's perfect. Thank you guys very much. Appreciate it.

Shar Pourreza: Got it. Okay, that's perfect. Thank you guys very much. Appreciate it.

Bill Fehrman: Thanks, Shar.

Bill Fehrman: Thanks, Shar.

Operator: Thanks, Shar.

Operator: Thanks, Shar.

Operator: Your next question comes from the line of Steve Fleishman with Wolfe Research. You may go ahead.

Operator: Your next question comes from the line of Steve Fleishman with Wolfe Research. You may go ahead.

Steve Fleishman: Hey, good morning.

Steve Fleishman: Hey, good morning.

Bill Fehrman: Hey, Steve.

Bill Fehrman: Hey, Steve.

Steve Fleishman: Just maybe a little bit on the Batch Zero disclosure. Thanks for that. Is there any way to tie what's actually in the current capital plan for expected growth for AEP Texas to that?

Steve Fleishman: Just maybe a little bit on the Batch Zero disclosure. Thanks for that. Is there any way to tie what's actually in the current capital plan for expected growth for AEP Texas to that?

Trevor Mihalik: Yeah. Steve, what we've done is historically we've said that generally the $78 billion five-year capital plan was disclosed, that it really was based on a 13 gigs of interconnection in Texas, we have raised that now, as you've seen, to the 45 gigs. Again, what we don't want to assume is that that's a dollar for dollar increase. What it is doing is giving us line of sight to an increasing capital plan as we lay out what's going on in Texas. From that perspective, again, I think what's more meaningful is if you look beyond the 45, we also have, I think it's almost 100 gigawatts in Texas behind that 45 gigs. Again, we know not all of that will come on.

Trevor Mihalik: Yeah. Steve, what we've done is historically we've said that generally the $78 billion five-year capital plan was disclosed, that it really was based on a 13 gigs of interconnection in Texas, we have raised that now, as you've seen, to the 45 gigs. Again, what we don't want to assume is that that's a dollar for dollar increase.

Trevor Mihalik: What it is doing is giving us line of sight to an increasing capital plan as we lay out what's going on in Texas. From that perspective, again, I think what's more meaningful is if you look beyond the 45, we also have, I think it's almost 100 gigawatts in Texas behind that 45 gigs. Again, we know not all of that will come on. I think what that really does is it shows line of sight beyond the five-year plan, with continued transmission build-out in Texas in support of these large loads interconnecting.

Trevor Mihalik: I think what that really does is it shows line of sight beyond the five-year plan, with continued transmission build-out in Texas in support of these large loads interconnecting.

Steve Fleishman: Okay. No, that's helpful. I guess the 13 gigs in the current plan is still below even what's in the base.

Steve Fleishman: Okay. No, that's helpful. I guess the 13 gigs in the current plan is still below even what's in the base.

Trevor Mihalik: That's right

Trevor Mihalik: That's right

Steve Fleishman: for Batch Zero. Okay. Maybe just one clarification.

Steve Fleishman: for Batch Zero. Okay. Maybe just one clarification.

Trevor Mihalik: Again, I would say I wouldn't put that as a multiple of 13, so it's going to be three times bigger on the CapEx plan prospectively. We do think.

Trevor Mihalik: Again, I would say I wouldn't put that as a multiple of 13, so it's going to be three times bigger on the CapEx plan prospectively. We do think.

Steve Fleishman: Right

Steve Fleishman: Right

Trevor Mihalik: that there is going to be some increased CapEx in Texas associated with this.

Trevor Mihalik: that there is going to be some increased CapEx in Texas associated with this.

Steve Fleishman: Understood. Just both you and CenterPoint have given these disclosures, which are helpful. Do you have any idea just the likelihood that ERCOT's going to change them when they finalize? Like was this pretty explicit how they were set? Is there likely to be some adjustments depending on that? Yeah.

Steve Fleishman: Understood. Just both you and CenterPoint have given these disclosures, which are helpful. Do you have any idea just the likelihood that ERCOT's going to change them when they finalize? Like was this pretty explicit how they were set? Is there likely to be some adjustments depending on that? Yeah.

Trevor Mihalik: I think if you take a look at what even ERCOT published recently, I think on 28 July, on their preliminary overview of the Batch Zero eligibility and what they were putting out there, what I would draw your attention to is within the 205 gigs that they had in the Batch Zero process that were eligible, we're roughly, call it, a quarter of that. Whether that gets pushed between base or allocated, I really look at those as probably pretty firm amounts, and maybe if it's a slip between base and allocated, it could slip one year. What that really does is gives us, again, confidence that you've got a longer-term line of sight to deploy the capital. We feel very good about the 45 gigs.

Trevor Mihalik: I think if you take a look at what even ERCOT published recently, I think on 28 July, on their preliminary overview of the Batch Zero eligibility and what they were putting out there, what I would draw your attention to is within the 205 gigs that they had in the Batch Zero process that were eligible, we're roughly, call it, a quarter of that. Whether that gets pushed between base or allocated, I really look at those as probably pretty firm amounts, and maybe if it's a slip between base and allocated, it could slip one year. What that really does is gives us, again, confidence that you've got a longer-term line of sight to deploy the capital. We feel very good about the 45 gigs.

Trevor Mihalik: Again, as we said in the prepared remarks, the filtration process that we go through, we are pretty rigorous in what we put forward on that. Again, we've gotten all the financial commitments in $2 billion of cash and other forms of collateral in support of those 45 gigs. We're pretty confident in the 45 gigs. However ERCOT tries to move that around, I think that's

Trevor Mihalik: Again, as we said in the prepared remarks, the filtration process that we go through, we are pretty rigorous in what we put forward on that. Again, we've gotten all the financial commitments in $2 billion of cash and other forms of collateral in support of those 45 gigs. We're pretty confident in the 45 gigs. However ERCOT tries to move that around, I think that's pretty set. It just may move from Batch Zero to Batch One in worst case scenario.

Bill Fehrman: pretty set. It just may move from Batch Zero to Batch One in worst case scenario.

Steve Fleishman: Okay. One other just follow-up to the question on West Virginia. One of the things that FirstEnergy mentioned yesterday was also looking at kind of bridging opportunities for some of the new load there. Is that something that you think you could do for customers there as well?

Steve Fleishman: Okay. One other just follow-up to the question on West Virginia. One of the things that FirstEnergy mentioned yesterday was also looking at kind of bridging opportunities for some of the new load there. Is that something that you think you could do for customers there as well?

Bill Fehrman: Absolutely. That's something that I would say we actually pioneered early on with our deal with Bloom Energy. In fact, as we started deploying bridging strategies, obviously, we noticed others sort of picking up on that idea. As we communicate with customers, we're giving them a very clear line of sight to how much capacity they can get immediately, which in West Virginia, we do have some reasonable opportunities there in that regard. Also, how we can supply them energy as we build out the transmission to go get them and/or the generation. I would say the customers we're talking with right now have been very pleased with the optionality we've provided them. We have a number of active discussions in progress. Super excited about what's happening in West Virginia.

Bill Fehrman: Absolutely. That's something that I would say we actually pioneered early on with our deal with Bloom Energy. In fact, as we started deploying bridging strategies, obviously, we noticed others sort of picking up on that idea. As we communicate with customers, we're giving them a very clear line of sight to how much capacity they can get immediately, which in West Virginia, we do have some reasonable opportunities there in that regard. Also, how we can supply them energy as we build out the transmission to go get them and/or the generation. I would say the customers we're talking with right now have been very pleased with the optionality we've provided them. We have a number of active discussions in progress. Super excited about what's happening in West Virginia.

Steve Fleishman: Thank you.

Steve Fleishman: Thank you.

Bill Fehrman: Yep. Thanks, Steve.

Bill Fehrman: Yep. Thanks, Steve.

Operator: Your next question comes from the line of Julien Dumoulin-Smith with Jefferies. You may go ahead.

Operator: Your next question comes from the line of Julien Dumoulin-Smith with Jefferies. You may go ahead.

Julien Dumoulin-Smith: Hey, good morning, team. Thank you guys very much. I appreciate it. Nicely done again. If I can take a further focus on PJM here, one, would love to hear your latest thoughts of how you think about just engaging in non-utility avenues, right? You just alluded to BTM, for instance, as behind-the-meter bridging. When you think about segments reporting, when you think about where some of this shows up, and your flexibility in helping customers, in a restructured geography, how do you think about participating? For instance, would you engage in acquiring existing generation to rate base and effectively flow that through your traditional tariffs? Just curious on the implications both in West Virginia and in your other PJM properties, especially Ohio.

Julien Dumoulin-Smith: Hey, good morning, team. Thank you guys very much. I appreciate it. Nicely done again. If I can take a further focus on PJM here, one, would love to hear your latest thoughts of how you think about just engaging in non-utility avenues, right? You just alluded to BTM, for instance, as behind-the-meter bridging. When you think about segments reporting, when you think about where some of this shows up, and your flexibility in helping customers, in a restructured geography, how do you think about participating? For instance, would you engage in acquiring existing generation to rate base and effectively flow that through your traditional tariffs? Just curious on the implications both in West Virginia and in your other PJM properties, especially Ohio.

Bill Fehrman: Yeah. Thanks, Julien, and good morning. I think we've proven that we're willing to go out and procure generation in our regulated utilities. In PJM, we've got a number of projects that we've announced in the past that have been purchased, for instance, for Indiana Michigan Power. We're always on the hunt for good quality assets that we can use to really supplement what we have in these vertical integrated utilities. I also think that the benefit of PJM, obviously, is that we can have these assets in other locations and get that power delivered to where we need it. The benefits of the way we look at the system more broadly, is that the footprint really offers us significant advantages in this market, because of the fact that a number of the hyperscalers now want to be in more rural areas.

Bill Fehrman: Yeah. Thanks, Julien, and good morning. I think we've proven that we're willing to go out and procure generation in our regulated utilities. In PJM, we've got a number of projects that we've announced in the past that have been purchased, for instance, for Indiana Michigan Power. We're always on the hunt for good quality assets that we can use to really supplement what we have in these vertical integrated utilities. I also think that the benefit of PJM, obviously, is that we can have these assets in other locations and get that power delivered to where we need it.

Bill Fehrman: The benefits of the way we look at the system more broadly, is that the footprint really offers us significant advantages in this market, because of the fact that a number of the hyperscalers now want to be in more rural areas. Our ability to find generation sort of wherever and get it delivered, again, is a pretty significant key advantage for us as we go forward.

Bill Fehrman: Our ability to find generation sort of wherever and get it delivered, again, is a pretty significant key advantage for us as we go forward.

Julien Dumoulin-Smith: Got it. Okay. Just as you think about other novel avenues here to bring generation in, how do you think about new nuclear in the context of a gen co, or how do you think about the new nuclear construct as it's evolving here with the rating agencies and other parties here? Just ultimately, how is that coming together? You guys have been particularly outspoken on this.

Julien Dumoulin-Smith: Got it. Okay. Just as you think about other novel avenues here to bring generation in, how do you think about new nuclear in the context of a gen co, or how do you think about the new nuclear construct as it's evolving here with the rating agencies and other parties here? Just ultimately, how is that coming together? You guys have been particularly outspoken on this.

Bill Fehrman: Well, I think just on the broader topic of a gen co, it is clearly something that we are doing significant evaluation of, as we think it provides some pretty significant advantages to us as we go forward and look to serve these customers on a very significant size. On the new nuclear front, as we evaluate these new nuclear opportunities, whether they are in a gen co or whether they are tied directly to a specific customer, just to reiterate, we are continuing to remain extremely prudent in the capital allocation and near-term spending on this to make sure that we are aligned with our broader financial strategy. As we have said in the prepared remarks, we are going to continue to require robust capital protection measures around this and very strong balance sheet and credit safeguards and clear regulatory and policy support in order to move forward with anything.

Bill Fehrman: Well, I think just on the broader topic of a gen co, it is clearly something that we are doing significant evaluation of, as we think it provides some pretty significant advantages to us as we go forward and look to serve these customers on a very significant size. On the new nuclear front, as we evaluate these new nuclear opportunities, whether they are in a gen co or whether they are tied directly to a specific customer, just to reiterate, we are continuing to remain extremely prudent in the capital allocation and near-term spending on this to make sure that we are aligned with our broader financial strategy.

Bill Fehrman: As we have said in the prepared remarks, we are going to continue to require robust capital protection measures around this and very strong balance sheet and credit safeguards and clear regulatory and policy support in order to move forward with anything. While the structures are interesting, we continue to look at other opportunities and trying to find a way to serve these customers in a manner that gives them the timing that they want.

Bill Fehrman: While the structures are interesting, we continue to look at other opportunities and trying to find a way to serve these customers in a manner that gives them the timing that they want.

Julien Dumoulin-Smith: Awesome. Sorry, just a quick one just to clarify the response to Shar earlier. You said you are committed to this greater than 9% growth rate over the five-year period. We have seen your peers kind of say, Look, we are not going to be overly prescriptive. We are going to leave it as a kind of a nine plus and you could do the math, if you will. Is that the construct that you are thinking about here? Obviously, given what you are even alluding to here, there is more latitude than what nine would suggest, but I am just curious how you would think about communicating that. Or do you just leave the plus with maybe another plus?

Julien Dumoulin-Smith: Awesome. Sorry, just a quick one just to clarify the response to Shar earlier. You said you are committed to this greater than 9% growth rate over the five-year period. We have seen your peers kind of say, Look, we are not going to be overly prescriptive. We are going to leave it as a kind of a nine plus and you could do the math, if you will. Is that the construct that you are thinking about here? Obviously, given what you are even alluding to here, there is more latitude than what nine would suggest, but I am just curious how you would think about communicating that. Or do you just leave the plus with maybe another plus?

Bill Fehrman: Well, my view is plus, plus, but I will let Trevor answer.

Bill Fehrman: Well, my view is plus, plus, but I will let Trevor answer.

Trevor Mihalik: Yeah, Julien, I think from our perspective, given that we are at a greater than 9% over the 5-year period, which I think is probably one of the industry-leading growth rates out there, I think we're comfortable with that because as you look beyond the 5-year plan, we continue to see a lot of opportunity to continue to invest capital and an increased growing capital plan. We just want to be careful that we're not getting ourselves into a situation where it's making financing that difficult or anything to that effect. Again, I think for a utility with a TSR of 10% to 13% is pretty robust.

Trevor Mihalik: Yeah, Julien, I think from our perspective, given that we are at a greater than 9% over the 5-year period, which I think is probably one of the industry-leading growth rates out there, I think we're comfortable with that because as you look beyond the 5-year plan, we continue to see a lot of opportunity to continue to invest capital and an increased growing capital plan. We just want to be careful that we're not getting ourselves into a situation where it's making financing that difficult or anything to that effect.

Trevor Mihalik: Again, I think for a utility with a TSR of 10% to 13% is pretty robust. I think, again, we've alluded to the fact that, on this call and what we're happy to come out with on the Q3 call, a continued increase in the capital plan, which we'll continue to see that growth rate into the next decade.

Trevor Mihalik: I think, again, we've alluded to the fact that, on this call and what we're happy to come out with on the Q3 call, a continued increase in the capital plan, which we'll continue to see that growth rate into the next decade.

Julien Dumoulin-Smith: Awesome, guys. Thank you for the time.

Julien Dumoulin-Smith: Awesome, guys. Thank you for the time.

Trevor Mihalik: Thanks, Julien.

Trevor Mihalik: Thanks, Julien.

Bill Fehrman: Thanks, Julien.

Bill Fehrman: Thanks, Julien.

Operator: Your next question comes from the line of Richard Sunderland with Truist Securities. You may go ahead.

Operator: Your next question comes from the line of Richard Sunderland with Truist Securities. You may go ahead.

Richard Sunderland: Hey, good morning. Thanks for the time today. I want to stick with some of these PJM topics, but zoom out a little bit more. Just thinking back to last quarter, you had some comments on kind of the state of PJM. There have been numerous developments on the PJM front since then. I'm curious kind of on balance of all those developments and what's to come into the fall, how you're thinking about the sort of PJM push and takes as you see them right now.

Richard Sunderland: Hey, good morning. Thanks for the time today. I want to stick with some of these PJM topics, but zoom out a little bit more. Just thinking back to last quarter, you had some comments on kind of the state of PJM. There have been numerous developments on the PJM front since then. I'm curious kind of on balance of all those developments and what's to come into the fall, how you're thinking about the sort of PJM push and takes as you see them right now.

Bill Fehrman: As we highlighted back on the Q1 call, just to remind everybody, we saw three main issues as it pertains to serving new customer load in PJM: governance, the speed of interconnect, and then resource adequacy. Since that call, I want to say to all that the pace and intensity of productive conversations with PJM has significantly increased. We're seeing very positive engagement across the board, including the team at PJM, FERC, other key stakeholders, our states. We continue to analyze all of the options. We're hopeful that we can all come together and create a set of solutions that allow us to meet the needs of the customers. We certainly recognize that PJM is seeking to address a number of these issues.

Bill Fehrman: As we highlighted back on the Q1 call, just to remind everybody, we saw three main issues as it pertains to serving new customer load in PJM: governance, the speed of interconnect, and then resource adequacy. Since that call, I want to say to all that the pace and intensity of productive conversations with PJM has significantly increased. We're seeing very positive engagement across the board, including the team at PJM, FERC, other key stakeholders, our states. We continue to analyze all of the options. We're hopeful that we can all come together and create a set of solutions that allow us to meet the needs of the customers. We certainly recognize that PJM is seeking to address a number of these issues.

Bill Fehrman: Coming out of the 23 July technical conference, we are very optimistic that there's going to be alignment around some of the solutions. As these issues continue to evolve, it's obviously important that any of the frameworks that get put forward ensure fairness to all of the participants and protect customers and appropriately assign costs to those who are causing them. I'm very hopeful with where we're at. Obviously, this is an important topic for us. We were significantly engaged in the technical conference, I'm hopeful that, as the next few weeks pass, there's going to be a good solution set that can be supported by ourselves and FERC and a number of our other stakeholders and collaborators.

Bill Fehrman: Coming out of the 23 July technical conference, we are very optimistic that there's going to be alignment around some of the solutions. As these issues continue to evolve, it's obviously important that any of the frameworks that get put forward ensure fairness to all of the participants and protect customers and appropriately assign costs to those who are causing them. I'm very hopeful with where we're at. Obviously, this is an important topic for us. We were significantly engaged in the technical conference, I'm hopeful that, as the next few weeks pass, there's going to be a good solution set that can be supported by ourselves and FERC and a number of our other stakeholders and collaborators.

Richard Sunderland: Great. Thank you for the color there. Then sort of the upside top edge, I know you ticked through some of the considerations around fuel cells and Piketon. I guess across both those two in particular, how are you thinking about milestones into the Q3 Plan update and if those projects will be ready for inclusion in the base plan, I guess particularly for fuel cells with that December date you highlighted?

Richard Sunderland: Great. Thank you for the color there. Then sort of the upside top edge, I know you ticked through some of the considerations around fuel cells and Piketon. I guess across both those two in particular, how are you thinking about milestones into the Q3 Plan update and if those projects will be ready for inclusion in the base plan, I guess particularly for fuel cells with that December date you highlighted?

Trevor Mihalik: Yeah, Richard, this is Trevor. I think we feel pretty optimistic with regards to both projects. I think we've been pretty public about the fact that I think the Piketon project in particular, we're advancing towards executing docs on that, and we anticipate that we would have executed docs in Q3. I think that would then roll into the five-year capital plan that we would roll out on the Q3 call. With regards to the Wyoming fuel cell project, there again, I think we continue to work with the hyperscaler. We did make some accommodations with regards to timing, and we're adequately compensated for that adjustment.

Trevor Mihalik: Yeah, Richard, this is Trevor. I think we feel pretty optimistic with regards to both projects. I think we've been pretty public about the fact that I think the Piketon project in particular, we're advancing towards executing docs on that, and we anticipate that we would have executed docs in Q3. I think that would then roll into the five-year capital plan that we would roll out on the Q3 call. With regards to the Wyoming fuel cell project, there again, I think we continue to work with the hyperscaler. We did make some accommodations with regards to timing, and we're adequately compensated for that adjustment.

Trevor Mihalik: Again, what we're really hopeful for is that that project will advance, and I think timing is key on that, just because those fuel cells need to be installed and ready to go by the end of 2028 to qualify for the investment tax credit. I think, likewise, we will see some positive movement, hopefully by that Q3 call, then roll that into the five-year plan. Likewise, we also have, as we've said on the call, the 13 GW of incremental generation. Some of that, call it maybe roughly about half, was in the existing $78 billion five-year capital plan. The incremental other half of those generation projects will roll in, that's also some tailwinds going into the revised five-year capital plan for 2027 to 2031.

Trevor Mihalik: Again, what we're really hopeful for is that that project will advance, and I think timing is key on that, just because those fuel cells need to be installed and ready to go by the end of 2028 to qualify for the investment tax credit. I think, likewise, we will see some positive movement, hopefully by that Q3 call, then roll that into the five-year plan. Likewise, we also have, as we've said on the call, the 13 GW of incremental generation. Some of that, call it maybe roughly about half, was in the existing $78 billion five-year capital plan. The incremental other half of those generation projects will roll in, that's also some tailwinds going into the revised five-year capital plan for 2027 to 2031.

Richard Sunderland: Great. Thanks for the time today.

Richard Sunderland: Great. Thanks for the time today.

Trevor Mihalik: Thanks so much, Richard.

Trevor Mihalik: Thanks so much, Richard.

Bill Fehrman: Thank you.

Bill Fehrman: Thank you.

Operator: Your next question comes from the line of David Arcaro with Morgan Stanley. Please go ahead.

Operator: Your next question comes from the line of David Arcaro with Morgan Stanley. Please go ahead.

David Arcaro: Hey, thank you. Good morning.

David Arcaro: Hey, thank you. Good morning.

Bill Fehrman: Morning, David.

Bill Fehrman: Morning, David.

David Arcaro: I was wondering if you could elaborate a little bit on what types of agreements you're looking at for that 10 GW of turbines that you're kind of exploring access to in the 2030s. Is this framework agreements for gigawatts over that timeframe? I guess what gives you the visibility also and kind of the line of sight looking out that far as to your current needs?

David Arcaro: I was wondering if you could elaborate a little bit on what types of agreements you're looking at for that 10 GW of turbines that you're kind of exploring access to in the 2030s. Is this framework agreements for gigawatts over that timeframe? I guess what gives you the visibility also and kind of the line of sight looking out that far as to your current needs?

Bill Fehrman: As you look at our overall planning, we're obviously one of the nation's largest owner-operators of electric generation. We've been very proactive since I arrived over the past couple of years to be securing turbines and other critical long lead time equipment, basically essentially using our size and scale and our relationships with namely GE, Vernova, and Mitsubishi to get this equipment locked up. As we looked at, and are looking at our new five-year plan this fall, the new generation investments are going to play a pretty central role in driving the long-term growth as we look to deploy this 13 GW of turbine capacity across the regulated businesses. We've been obviously extremely proactive to get these turbines.

Bill Fehrman: As you look at our overall planning, we're obviously one of the nation's largest owner-operators of electric generation. We've been very proactive since I arrived over the past couple of years to be securing turbines and other critical long lead time equipment, basically essentially using our size and scale and our relationships with namely GE, Vernova, and Mitsubishi to get this equipment locked up. As we looked at, and are looking at our new five-year plan this fall, the new generation investments are going to play a pretty central role in driving the long-term growth as we look to deploy this 13 GW of turbine capacity across the regulated businesses. We've been obviously extremely proactive to get these turbines.

Bill Fehrman: As we think about where this is going, we know that generation is going to be a driving force, and because of that, it's a scarce resource and will become increasingly more valuable. This has certainly played out, and we're going to continue to be aggressive in our positions on this. We're continuing to actively work with the key suppliers and are very confident that not only with what we have locked up, but we've got clear line of sight through certain framework agreements and such that we can get what we need to continue to deliver for customers. Trevor, anything to add?

Bill Fehrman: As we think about where this is going, we know that generation is going to be a driving force, and because of that, it's a scarce resource and will become increasingly more valuable. This has certainly played out, and we're going to continue to be aggressive in our positions on this. We're continuing to actively work with the key suppliers and are very confident that not only with what we have locked up, but we've got clear line of sight through certain framework agreements and such that we can get what we need to continue to deliver for customers. Trevor, anything to add?

Trevor Mihalik: Yeah. Thanks, Bill. Just two things. One, David, I would say that the 10 gigs is an option for us, so we're not committed to that, but we have the option to step into those slots. More importantly, I would also say, when you take a look at what the timing of those 10 gigs would be, it dovetails well into our existing plants that are aging and will be retiring. What this is really doing is setting us up really well to continue to replace potentially some of the coal plants and some of the retiring gas plants in our vertically integrated utilities. Again, it's just us taking a very forward-leaning approach to ensuring we've got access to the assets for the support of the entire portfolio.

Trevor Mihalik: Yeah. Thanks, Bill. Just two things. One, David, I would say that the 10 gigs is an option for us, so we're not committed to that, but we have the option to step into those slots. More importantly, I would also say, when you take a look at what the timing of those 10 gigs would be, it dovetails well into our existing plants that are aging and will be retiring. What this is really doing is setting us up really well to continue to replace potentially some of the coal plants and some of the retiring gas plants in our vertically integrated utilities. Again, it's just us taking a very forward-leaning approach to ensuring we've got access to the assets for the support of the entire portfolio.

David Arcaro: Got it. Yeah, that's helpful. I appreciate that. Separately, I was just wondering, as we head, I guess, into your Q3 and the update to the CapEx plan, as I'm looking at the new generation resources, just wondering, are there other incremental load opportunities coming between now and then? Between now and Q3? Is there further potential upside to, let's say, the Batch Zero? You've been obviously very active, very successful in the quarterly progress on contracting new large loads with six gigawatts here. Could that continue to increase as we go in the coming months into Q3?

David Arcaro: Got it. Yeah, that's helpful. I appreciate that. Separately, I was just wondering, as we head, I guess, into your Q3 and the update to the CapEx plan, as I'm looking at the new generation resources, just wondering, are there other incremental load opportunities coming between now and then? Between now and Q3? Is there further potential upside to, let's say, the Batch Zero? You've been obviously very active, very successful in the quarterly progress on contracting new large loads with six gigawatts here. Could that continue to increase as we go in the coming months into Q3?

Trevor Mihalik: Yeah, I think what we have seen is that executed LOAs and ESAs increase every quarter over the last, call it six, seven quarters here. We do continue to see active interconnection requests to connect to the system. Again, we do know that a lot of that is limited by generation in some of those states like Texas and Ohio. For our vertically integrated utilities, this is where we've been very forward-leaning in trying to secure those 13 gigs to ensure that we can meet that potential load. I would say this is something that we continue to see a lot of opportunity where large, well-capitalized, and not just hyperscalers, but industrial customers continue to actively try to interconnect to our system. I think you will continue to see that number continue to move and refine over the next several quarters.

Trevor Mihalik: Yeah, I think what we have seen is that executed LOAs and ESAs increase every quarter over the last, call it six, seven quarters here. We do continue to see active interconnection requests to connect to the system. Again, we do know that a lot of that is limited by generation in some of those states like Texas and Ohio. For our vertically integrated utilities, this is where we've been very forward-leaning in trying to secure those 13 gigs to ensure that we can meet that potential load. I would say this is something that we continue to see a lot of opportunity where large, well-capitalized, and not just hyperscalers, but industrial customers continue to actively try to interconnect to our system. I think you will continue to see that number continue to move and refine over the next several quarters.

David Arcaro: Great. Thank you.

David Arcaro: Great. Thank you.

Bill Fehrman: Thank you.

Bill Fehrman: Thank you.

Trevor Mihalik: Thanks, David.

Trevor Mihalik: Thanks, David.

Operator: Your next question comes from the line of Jeremy Tonet with JP Morgan.

Operator: Your next question comes from the line of Jeremy Tonet with JP Morgan.

[Analyst] (JPMorgan): Hi. Good morning. This is actually Aidan on for Jeremy.

Aidan Kelly: Hi. Good morning. This is actually Aidan on for Jeremy.

Trevor Mihalik: Hey, Aidan.

Bill Fehrman: Hey, Aidan.

[Analyst] (JPMorgan): Hey, good morning. Just want to hone in on the $16 billion of cost offsets. Clearly, that's a very large number here. I guess, is there any way, like how we should be thinking about translating that figure into annual bill mitigation across your key jurisdictions and when customers should begin kind of seeing the most meaningful benefits?

Aidan Kelly: Hey, good morning. Just want to hone in on the $16 billion of cost offsets. Clearly, that's a very large number here. I guess, is there any way, like how we should be thinking about translating that figure into annual bill mitigation across your key jurisdictions and when customers should begin kind of seeing the most meaningful benefits?

Trevor Mihalik: Yeah. Let me kind of take a first stab at that, then I'll also turn it over to Kate to see if she wants to add anything. I think, one of the biggest things that we want to point out is that $16 billion over the life of the contract is really just at our vertically integrated utilities because it's really under the ESAs. From that perspective, what we've done is when we looked at the calculation of that and see what the up to $16 billion of cost offsets could be. It was really done on a methodology spread across the vertically integrated utilities. Kate, do you want to add anything?

Trevor Mihalik: Yeah. Let me kind of take a first stab at that, then I'll also turn it over to Kate to see if she wants to add anything. I think, one of the biggest things that we want to point out is that $16 billion over the life of the contract is really just at our vertically integrated utilities because it's really under the ESAs. From that perspective, what we've done is when we looked at the calculation of that and see what the up to $16 billion of cost offsets could be. It was really done on a methodology spread across the vertically integrated utilities. Kate, do you want to add anything?

Kate Dixon: Hi, Aidan. It's Kate. The only thing I would add is we're starting to see that come through our regulatory process already. In Indiana, we've been very public about the fact that we will be filing for a rate decrease. You've seen us have a rate decrease on the residential side in Ohio. You're starting to see some of that come through our rate proceedings already, and as we move further through the cycle here, we expect that trend to continue.

Kate Dixon: Hi, Aidan. It's Kate. The only thing I would add is we're starting to see that come through our regulatory process already. In Indiana, we've been very public about the fact that we will be filing for a rate decrease. You've seen us have a rate decrease on the residential side in Ohio. You're starting to see some of that come through our rate proceedings already, and as we move further through the cycle here, we expect that trend to continue.

[Analyst] (JPMorgan): Great. Thanks. That's super helpful. For the 2026 guidance raise today, could you just explain if that is more so driven by the Generation and Marketing segment, or also kind of reflecting higher load growth or earned ROEs than may be expected? I guess, how informative is your outlook for the Gen and Marketing segment in the go-forward years?

Aidan Kelly: Great. Thanks. That's super helpful. For the 2026 guidance raise today, could you just explain if that is more so driven by the Generation and Marketing segment, or also kind of reflecting higher load growth or earned ROEs than may be expected? I guess, how informative is your outlook for the Gen and Marketing segment in the go-forward years?

Trevor Mihalik: Yeah. On the guidance increase, we want to emphasize that where we are year-to-date through Q2, is really well within or actually it's in excess of what our plan was when we built the guidance range of the $6.15 to $6.45. We feel we had a good strong start to the H1 of the year. Looking at the H2 of the year, historically, Q3 has typically been our strongest quarter. We've got earnings uplift from certain regulatory matters, primarily in APCO with the inflation-based rates, also in SWEPCO Texas and in PSO. That will phase in over the H2 of the year, which is giving us great confidence to be able to raise the guidance range to that increase in $0.10. That's really kind of what we're looking at right now.

Trevor Mihalik: Yeah. On the guidance increase, we want to emphasize that where we are year-to-date through Q2, is really well within or actually it's in excess of what our plan was when we built the guidance range of the $6.15 to $6.45. We feel we had a good strong start to the H1 of the year. Looking at the H2 of the year, historically, Q3 has typically been our strongest quarter. We've got earnings uplift from certain regulatory matters, primarily in APCO with the inflation-based rates, also in SWEPCO Texas and in PSO. That will phase in over the H2 of the year, which is giving us great confidence to be able to raise the guidance range to that increase in $0.10. That's really kind of what we're looking at right now.

[Analyst] (JPMorgan): Great. Thank you. Appreciate the time today. I'll leave it there.

Aidan Kelly: Great. Thank you. Appreciate the time today. I'll leave it there.

Trevor Mihalik: Thanks so much.

Trevor Mihalik: Thanks so much.

Operator: We have time for one more call. Michael Lonegan from Barclays, your line is open.

Operator: We have time for one more call. Michael Lonegan from Barclays, your line is open.

Michael Lonegan: Hi. Thanks for taking my question. The Oklahoma rate case settlement includes the full transmission tracker that could improve your earned ROE in the state. Was that contemplated in your plan when you set the earned ROE target of 9.5% that you reiterated today? Would you say that target is now conservative, also should we expect you to meaningfully increase your capital in the state?

Michael Lonegan: Hi. Thanks for taking my question. The Oklahoma rate case settlement includes the full transmission tracker that could improve your earned ROE in the state. Was that contemplated in your plan when you set the earned ROE target of 9.5% that you reiterated today? Would you say that target is now conservative, also should we expect you to meaningfully increase your capital in the state?

Trevor Mihalik: Look, I would say, I'm going to answer the second part of that question first. We continue to see robust growth across four key areas right now, being Texas, Oklahoma, Ohio, and Indiana. As Bill mentioned, we're starting to see a lot of opportunity around Virginia and West Virginia. I wouldn't say specifically it was contemplated on the tracker in our guidance, because you kind of go into these rate case settlements, there's a lot of moving parts. With us getting the tracker having the very slight decrease from 9.5 to 9.375 on what we've reached a potential settlement with some key interveners, I think those two largely offset each other pretty well. In fact, we feel very good about having a tracker mechanism there.

Trevor Mihalik: Look, I would say, I'm going to answer the second part of that question first. We continue to see robust growth across four key areas right now, being Texas, Oklahoma, Ohio, and Indiana. As Bill mentioned, we're starting to see a lot of opportunity around Virginia and West Virginia. I wouldn't say specifically it was contemplated on the tracker in our guidance, because you kind of go into these rate case settlements, there's a lot of moving parts.

Trevor Mihalik: With us getting the tracker having the very slight decrease from 9.5 to 9.375 on what we've reached a potential settlement with some key interveners, I think those two largely offset each other pretty well. In fact, we feel very good about having a tracker mechanism there. From that perspective, it really needs to be contemplated in the full mindset of your kind of a give and take in these settlements.

Trevor Mihalik: From that perspective, it really needs to be contemplated in the full mindset of your kind of a give and take in these settlements.

Michael Lonegan: Thank you. Just wondering if you could talk about when you plan to file the rate case in Indiana, and if you expect the case to be complicated by the affordability report in the state. I know you will be filing for a rate decrease, but the affordability report establishes investigations to various aspects of rate making, including ROE. Just wondering how you are thinking about that with the rate case that will be going on during the investigations into rate making.

Michael Lonegan: Thank you. Just wondering if you could talk about when you plan to file the rate case in Indiana, and if you expect the case to be complicated by the affordability report in the state. I know you will be filing for a rate decrease, but the affordability report establishes investigations to various aspects of rate making, including ROE. Just wondering how you are thinking about that with the rate case that will be going on during the investigations into rate making.

Trevor Mihalik: Well, first and foremost, Indiana remains really one of our premium jurisdictions, particularly given I&M's ability to capture the economic development there while simultaneously balancing affordability, particularly when we have historically low rates versus our other peers in that state. As you noted, we implemented rate reductions earlier this year, and we've announced plans to file a base rate decrease later on this summer. That hasn't been scheduled yet, but it's not far from now. These rate reductions, as Kate noted, are made possible by the ability to attract large load customers like Google and Microsoft, then shifting a significant amount of those fixed costs away from residential customers. With regards to the studies and the other activities that are going on there, I want to be very clear in the fact that we have very strong relationships in that state with key stakeholders.

Bill Fehrman: Well, first and foremost, Indiana remains really one of our premium jurisdictions, particularly given I&M's ability to capture the economic development there while simultaneously balancing affordability, particularly when we have historically low rates versus our other peers in that state. As you noted, we implemented rate reductions earlier this year, and we've announced plans to file a base rate decrease later on this summer. That hasn't been scheduled yet, but it's not far from now. These rate reductions, as Kate noted, are made possible by the ability to attract large load customers like Google and Microsoft, then shifting a significant amount of those fixed costs away from residential customers.

Bill Fehrman: With regards to the studies and the other activities that are going on there, I want to be very clear in the fact that we have very strong relationships in that state with key stakeholders. In fact, in our discussions with these state officials, they've pointed to I&M as being a leading example of how a company can support economic growth while actually driving customer affordability. They've cited I&M's planned rate decrease finally many times in those discussions.

Trevor Mihalik: In fact, in our discussions with these state officials, they've pointed to I&M as being a leading example of how a company can support economic growth while actually driving customer affordability. They've cited I&M's planned rate decrease finally many times in those discussions. We look very forward to continuing collaborating with all the stakeholders in the state to advance the outcomes that support economic development and enhance affordability for customers, and mostly create long-term value for our folks there in continuing to do what the state wants us to do, which is provide exceptional customer service.

Bill Fehrman: We look very forward to continuing collaborating with all the stakeholders in the state to advance the outcomes that support economic development and enhance affordability for customers, and mostly create long-term value for our folks there in continuing to do what the state wants us to do, which is provide exceptional customer service. Try and reduce our costs, and that's what we're committed to doing at AEP.

Bill Fehrman: Try and reduce our costs, and that's what we're committed to doing at AEP.

Michael Lonegan: Great. Thanks for taking my question.

Michael Lonegan: Great. Thanks for taking my question.

Operator: This concludes the question and answer session. I would like to turn the call back over to Bill Fehrman, President and CEO, for closing remarks.

Operator: This concludes the question and answer session. I would like to turn the call back over to Bill Fehrman, President and CEO, for closing remarks.

Bill Fehrman: Yeah. Look, everybody, really appreciate you joining us on today's call. I know there's a number of other earnings calls today, we appreciate you joining ours. If you have any follow-up items, just please reach out to the IR team with your questions, we look forward to seeing you all later in the year at the various investor conferences coming up. Thank you for your continued interest in our company, and this concludes our call. Thank you.

Bill Fehrman: Yeah. Look, everybody, really appreciate you joining us on today's call. I know there's a number of other earnings calls today, we appreciate you joining ours. If you have any follow-up items, just please reach out to the IR team with your questions, we look forward to seeing you all later in the year at the various investor conferences coming up. Thank you for your continued interest in our company, and this concludes our call. Thank you.

Operator: The telephone replay playback ID 5662331, followed by the pound key. US and Canada toll-free +1-800-770-2030. US toll +1-609-800-9909. Canada toll +1-647-362-9199. United Kingdom +442034333849. Echo replay will expire on 6 August 2026, 11:59 PM Eastern Time.

Operator: The telephone replay playback ID 5662331, followed by the pound key. US and Canada toll-free +1-800-770-2030. US toll +1-609-800-9909. Canada toll +1-647-362-9199. United Kingdom +442034333849. Echo replay will expire on 6 August 2026, 11:59 PM Eastern Time.