American Electric Power Company Inc.

Strong execution + raised guidance (good / core upside) - 2Q 2026 operating earnings: $1.36/share ($742m) vs $1.43/share in 2Q 2025 (down YoY mainly due to 2025 transmission minority interest sale effects and timing-related tax items). - 2026 full-year guidance raised: $6.25–$6.55/share (up from $6.15–$6.45). - Longer-term growth outlook reaffirmed: 7%–9% operating EPS growth rate and >9% operating EPS CAGR through 2030, supported by the $78B 2026–2030 capital plan. - Credit metric focus: target FFO to debt ratio 14%–15% to support an investment-grade profile while scaling the capital program.

Large-load demand accelerating—major driver of the capital plan (surprising / opportunity) - Contracted load additions through 2030: now 69 GW (up from 63 GW last quarter), supported by fully executed LOAs/ESAs. - Texas remains the largest engine: 45 GW of contracted load through 2030. - Cost “offset” thesis: new large load helps shift fixed costs away from existing customers; management reiterated up to $16B projected residential fixed-cost offsets in vertically integrated utilities. - Bottom line: management argues the growth is durable due to tariff structures requiring long-term commitments and creditworthy hyperscaler/industrial counterparties.

ERCOT “Batch Zero” process: increased visibility, but timing risk remains (good with an edge of uncertainty) - AEP Texas submitted 45 GW of projects into ERCOT Batch Zero (study window now to 2032); ERCOT review expected, with eligibility decision Aug 7. - AEP reported ~$2B collected as cash/collateral supporting the 45 GW commitments. - Management expects the 45 GW to be credible and says ERCOT may mainly affect timing allocation between batches (worst case: some projects could slip from Batch Zero toward later batches), but doesn’t change the underlying commitment.