AMERICAN ELECTRIC POWER COMPANY, INC.

Red flags

• AEP had $47.3 billion of long-term debt outstanding at December 31, 2025, up from $42.6 billion in 2024; the debt’s reported fair value was $44.9 billion, below book value.
• AEP Texas had major customer concentration: NRG Energy and Vistra Corp. together represented 38% of 2025 total revenues and 33% of customer accounts receivable.
• The remaining forward-sale agreements could result in approximately $1.7 billion of additional equity proceeds and the ATM program permits up to $3.5 billion of further common-stock issuance, creating material dilution and funding dependence.
• AEP’s capital plans are explicitly dependent on data-center and large-load customers, while project cancellations, permitting failures, cost overruns, or regulatory disallowances could leave construction and investment costs unrecovered.