COLUMBUS - American Electric Power (Nasdaq: AEP) today reported third-quarter 2020 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $749 million or $1.51 per share, compared with GAAP earnings of $734 million or $1.49 per share in third-quarter 2019.

Operating earnings for third-quarter 2020 were $728 million or $1.47 per share, compared with operating earnings of $722 million or $1.46 per share in third-quarter 2019. Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items. The difference between 2020 GAAP earnings and operating earnings for the quarter was primarily driven by the impacts of a federal tax benefit from the CARES Act and the company's Achieving Excellence cost savings and efficiency program.

'We continue to execute on our strategy and achieve strong earnings performance in line with our targeted guidance range for the year, despite the significant challenges presented by the COVID-19 pandemic. Our employees have done an amazing job adjusting to new ways of working over the last seven months and have remained focused on delivering essential power to our customers safely and efficiently,' said Nicholas K. Akins, AEP chairman, president and chief executive officer.

'The critical investments we've been making in the grid to enhance reliability and resiliency, replace aging equipment and support renewable energy development have remained on track. Our Transmission Holding Co. business contributed 28 cents per share in the quarter, an increase of 3 cents from the same period last year. Net plant assets in our Transmission Holding Co. business grew by $1.5 billion, or 16%, from September 2019.

'Our ongoing focus on managing operations and maintenance expenses and enhancing efficiency also bolstered our performance in the quarter despite milder temperatures year-over-year. We're well on our way to achieving the additional $100 million in spending cuts we previously announced and are implementing initiatives to reduce expenses longer term in many parts of the company,' Akins said.

'Adjusted for weather, year-to-date residential sales increased 2.6% compared with last year, largely due to people spending more time at home in response to the pandemic. As we projected, both our commercial and industrial classes are showing steady improvement from the low we experienced in the second quarter as some businesses reopened over the summer. We expect this trend will continue into 2021, barring additional unanticipated negative economic impacts from the pandemic.

'We plan to invest $5.9 billion in capital in 2020 and expect to deliver operating earnings performance for the year solidly within the $4.25 to $4.45 guidance range that we targeted before the onset of the pandemic,' Akins said.

Contact:

Melissa McHenry

Tel: 614 716-1120

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