AEP and its subsidiaries face risks from fluctuating economic conditions, energy market demand, extreme weather, fuel costs, regulatory proceedings (including potential rate case disallowances and refunds), supply chain disruptions, inflation, and litigation. Specific risks include potential losses from the Federal EPA's revised CCR rule, SEC investigation, and indemnification claims. Market volatility and access to capital are also concerns.
Financial Upside
Favorable outcomes in rate proceedings, receipt of IRS Private Letter Rulings (PLRs) impacting NOLCs, increased sales volumes, transmission asset investments, and the sale of AEP OnSite Partners contribute to potential financial gains. The sale of transferable tax credits and new generation projects (renewable) also represent potential upside.
