PNW - American Electric Rides on Investments Interest Rate Woes | Benzinga
American Electric Power Company, Inc. (NASDAQ: AEP) is deploying systematic investments in infrastructural upgrades to enhance the reliability of its operations, which will allow it to serve its utility customers efficiently. The company is also making consistent investments to expand its renewable generation portfolio.
However, this Zacks Rank #3 (Hold) company faces risks like rising interest rates and an unfavorable financial position, which act as a headwind.
Tailwinds
American Electric has a capital investment plan of $43 billion for the 2024-2028 period to strengthen its grid and thereby boost customer reliability. AEP expects this systematic investment to support it in achieving long-term earnings growth of 6-7%.
The company operates the United States' biggest electricity transmission system consisting of roughly 40,000 circuit miles of transmission lines. It has around 225,000 miles of distribution lines. In this respect, American Electric intends to invest roughly $27.3 billion in its transmission ...