Morningstar Rating

Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

Investments in transmission and environmental improvements during the next several years should support strong earnings growth.
AEP earns regulated returns in many different state jurisdictions, protecting AEP's earnings from the impact of one adverse regulatory ruling.
AEP management continues to move the company toward being a fully regulated utility. Read more 

Bears Say

The company's Ohio generation assets are predominantly coal, putting AEP at a cost disadvantage in a period of low natural gas prices.
Greenhouse gases are a long-term problem for AEP's coal plants because there currently is no economically feasible technology to eliminate carbon dioxide emissions.
About 25% of AEP's revenue is generated from Ohio, which has one of the most unstable regulatory environments in the country. Read more 

Management

Management has done a commendable job representing shareholders' interests by presenting Ohio regulators with a fair solution for the state's transition to a competitive energy market. AEP has pledged it plans to take little market risk with its generation   Read more 

Profile

American Electric Power is one of the largest regulated utilities in the United States, providing generation, transmission, and distribution services to more than 5 million   Read more 

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