AEP Signs 6 GW of New Load Commitments in Q2, Texas Data-Center Demand Surges
AEP sits 22% above its 52-week low of $105.7 on light trading volume (0.2× avg).
Summary
AEP disclosed on its Q2 earnings call that it signed 6 GW of new load commitments in the quarter, overwhelmingly driven by data-center-style contracts in Texas. The company now has 45 GW of contracted load in Texas through 2030, with Ohio at 12 GW and five other states combining for another 12 GW. Critically, the existing $78 billion capital plan does not yet reflect this scale of Texas load growth, and a new five-year plan covering 2027-2031 will be released in Q3. This follows the May capital plan increase to $78 billion and the recent $3.26 billion DOE loan to the Texas unit. The load growth trajectory is accelerating beyond prior expectations, with interconnection requests still rising. Indiana Michigan Power also plans a base rate cut this summer, offset by large-load cost benefits.
At the time of this announcement, AEP was trading at $129.36 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $70.4B. 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: Reuters.