8-KRegulation FD

AMERICAN ELECTRIC POWER CO INC 8-K Report, Regulation FD Disclosure (Jan 15, 2008)

Filed January 15, 2008For Securities:AEP

Summary

American Electric Power Company, Inc. (AEP) filed this Form 8-K on January 15, 2008, to disclose information presented to investors during meetings held on the same day. The primary purpose of the filing was to reaffirm AEP's previously issued earnings guidance for the 2007 fiscal year. Specifically, the company stated that its ongoing earnings per share (EPS) were expected to be in the range of $2.90 to $3.00. AEP emphasized that it considers 'ongoing earnings,' which are GAAP earnings adjusted for certain items, as its primary performance metric when communicating with investors and analysts. The company also uses this metric internally for performance evaluation. The filing also serves as a notice that the company's management will be discussing these financial expectations with investors. As is standard practice, the report includes a detailed disclaimer of forward-looking statements, outlining various factors that could cause actual results to differ materially from projections. These factors include, but are not limited to, electric load growth, weather conditions, fuel costs and availability, regulatory decisions, legislative changes, litigation, operational costs, economic conditions, and financial market volatility.

Key Highlights

  • 1AEP reaffirmed its 2007 fiscal year ongoing earnings per share (EPS) guidance of $2.90 to $3.00.
  • 2The reaffirmation was made during investor meetings held on January 15, 2008.
  • 3AEP emphasizes 'ongoing earnings' (adjusted GAAP EPS) as its primary metric for communicating financial performance and outlook.
  • 4The company uses ongoing earnings for internal performance measurement and reporting to the board.
  • 5The filing includes a comprehensive list of risk factors that could impact future financial results.
  • 6Key risk factors mentioned include regulatory matters, fuel costs, weather, economic conditions, and financial market dynamics.

Frequently Asked Questions

The main purpose of this 8-K filing was to inform investors that AEP was reaffirming its previous guidance for 2007 ongoing earnings per share, which was projected to be between $2.90 and $3.00. This information was shared during investor meetings on January 15, 2008.

AEP defines 'ongoing earnings' as GAAP earnings adjusted for certain items. The company considers this metric a more meaningful representation of its performance and uses it as its primary measure when communicating its earnings outlook and results to analysts and investors, as well as for internal performance tracking.

The filing lists numerous risk factors, including but not limited to: electric load and customer growth, weather conditions, fuel costs and availability, performance of generating plants, regulatory decisions (including rate cases and environmental compliance), new legislation, litigation (such as Clean Air Act enforcement actions), operational and maintenance costs, economic conditions in AEP's service territory, financial market volatility, and changes in utility regulation.

No, this filing was not announcing new financial results or a specific material event. It was primarily a Regulation FD disclosure to communicate that the company would be reaffirming its previously issued earnings guidance during investor meetings.