8-KRegulation FD

AMERICAN ELECTRIC POWER CO INC 8-K Report, Regulation FD Disclosure (Jul 10, 2007)

Filed July 10, 2007For Securities:AEP

Summary

This 8-K filing from American Electric Power Company, Inc. (AEP) on July 10, 2007, primarily serves as a Regulation FD disclosure. The company is announcing that during investor meetings scheduled between July 10 and July 17, 2007, it will reaffirm its previously issued guidance for ongoing earnings per share (EPS) for the full 2007 fiscal year. This guidance remains in the range of $2.85 to $3.05 per share, a figure first communicated in an 8-K filing on April 26, 2007. Management emphasizes that "ongoing earnings," which are GAAP earnings adjusted for certain items, are considered a more meaningful measure of performance and are used for internal reporting and external communications with analysts and investors. The filing also includes a standard disclaimer about forward-looking statements and outlines various risk factors that could impact actual results, ranging from weather and fuel costs to regulatory changes and market volatility.

Key Highlights

  • 1Reaffirmation of 2007 ongoing earnings per share guidance of $2.85 to $3.05.
  • 2Guidance was initially provided on April 26, 2007, in a previous 8-K filing.
  • 3Investor meetings to discuss guidance will take place from July 10 to July 17, 2007.
  • 4AEP uses "ongoing earnings" (adjusted GAAP earnings) as its primary performance metric for investor communication.
  • 5The filing includes a comprehensive list of risk factors that could affect future financial performance.
  • 6Standard forward-looking statement disclaimer is included, highlighting potential deviations from projected results.

Frequently Asked Questions

The main purpose of this 8-K filing is to formally announce that American Electric Power Company, Inc. (AEP) will reaffirm its previously stated earnings guidance for the 2007 fiscal year during upcoming investor meetings. It also serves as a Regulation FD disclosure to ensure all investors have access to this information.

AEP is reaffirming its ongoing earnings per share guidance for the 2007 fiscal year to be in the range of $2.85 to $3.05.

AEP defines 'ongoing earnings' as GAAP earnings adjusted for certain items. The company believes this adjusted measure provides a more meaningful representation of its performance and uses it as its primary metric when communicating with analysts and investors about its earnings outlook and results.

The filing lists numerous risk factors, including electric load and customer growth, weather conditions, fuel costs and availability, generating capacity performance, regulatory and legislative changes (especially environmental regulations), litigation, operational costs, asset sales, economic conditions in service territories, capital market conditions, and commodity price volatility.