AEP's Indiana Michigan Power Files for 1,520 MW Gas Plant to Meet Surging Demand
AEP sits 24% above its 52-week low of $105.7 on light trading volume (0.4× avg).
Summary
Indiana Michigan Power (I&M), a subsidiary of American Electric Power, has filed with Indiana regulators to build a 1,520 MW natural gas combined cycle plant at its Rockport site. The project is driven by expectations that power demand in its Indiana service area will more than double by the early 2030s. The filing is a concrete step in AEP's broader $78 billion capital plan and follows the recent $3.26 billion federal loan to its Texas unit for grid upgrades. The new plant, expected to be operational by summer 2030, would reduce reliance on market purchases and support long-term cost stability. The investment is already factored into I&M's upcoming rate reduction filing, signaling disciplined cost management. A regulatory decision is expected in early 2027.
At the time of this announcement, AEP was trading at $131.07 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $71.3B. The 52-week trading range was $105.70 to $140.58. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.