American Electric Power Company, Inc. (NasdaqGS:AEP) planned to invest in its regulated businesses, accelerate its carbon reduction targets and streamline the business to drive value for customers, communities and investors. The company plans to invest $40 billion in capital from 2023 through 2027 with an emphasis on transmission, distribution and renewable energy. AEP will allocate $26 billion to transmission and distribution operations to continue building a modern, efficient, reliable and resilient energy grid.

During the same period, AEP plans to invest $9 billion in regulated renewable generation. As the company transitions to a clean energy future, AEP is adjusting its near-term carbon dioxide emission reduction target from a 2000 baseline to a 2005 baseline, upgrading its 80% reduction by 2030 target to include full Scope 1 emissions and accelerating its net-zero goal by five years to 2045. "AEP has a proven track record of reducing fleet emissions and repeatedly has reached our goals ahead of schedule," said Nicholas K. Akins, AEP chair and chief executive officer.

"Raising our carbon reduction targets reflects our progress in reducing our environmental footprint and delivering more low-emissions energy to our customers. We're confident we can continue this momentum to a net-zero future by integrating more clean energy resources, strengthening the energy grid and harnessing the power of emerging technologies. In addition to environmental benefits, renewable resources offer stability for customers from fuel price volatility." AEP announced Sept.

30 that it expects to complete the sale of its Kentucky operations to Liberty in January 2023. Earlier this year, AEP also announced it would sell its portfolio of contracted, unregulated renewable energy assets. The sales process for those renewable resources began in August 2022 and is on track to close during the second quarter of 2023.

AEP also will initiate a strategic review of its retail business as part of its ongoing strategy to de-risk and streamline the company.