8-KRegulation FD

AMERICAN ELECTRIC POWER CO INC 8-K Report, Regulation FD Disclosure (Jan 7, 2010)

Filed January 7, 2010For Securities:AEP

Summary

American Electric Power Company, Inc. (AEP) filed this 8-K report on January 7, 2010, to disclose information shared during investor meetings held between January 7 and January 11, 2010. The primary purpose of the filing was to reaffirm AEP's previously issued earnings guidance for both the fiscal year 2009 and the upcoming fiscal year 2010. This communication is particularly relevant for investors as it provides a direct update on the company's financial outlook and reinforces management's confidence in its performance projections. Specifically, AEP confirmed its ongoing earnings per share guidance for 2009 to be between $2.90 and $3.05, a figure first stated in an October 29, 2009 filing. For the 2010 fiscal year, the company reaffirmed its guidance of $2.80 to $3.20 per share, initially provided in an 8-K filing on December 1, 2009. The report also clarifies that AEP utilizes "ongoing earnings" (GAAP earnings adjusted for certain items) as its preferred metric for performance measurement and investor communication, believing it offers a more meaningful representation of the company's operational results.

Key Highlights

  • 1AEP reaffirms 2009 ongoing earnings per share guidance of $2.90 to $3.05.
  • 2AEP reaffirms 2010 ongoing earnings per share guidance of $2.80 to $3.20.
  • 3Guidance was reaffirmed during investor meetings conducted from January 7 to January 11, 2010.
  • 4The company emphasizes its use of "ongoing earnings" (adjusted GAAP earnings) as a key performance metric.
  • 5Ongoing earnings are used internally for performance measurement and externally in communications with analysts and investors.
  • 6The report includes standard forward-looking statements and a disclaimer about potential variations from projections due to various market and operational factors.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose that American Electric Power Company, Inc. (AEP) representatives were conducting investor meetings and to reaffirm the company's previously issued earnings per share guidance for both fiscal year 2009 and fiscal year 2010.

AEP reaffirmed its ongoing earnings per share guidance for fiscal year 2009 to be between $2.90 and $3.05. For fiscal year 2010, the company reaffirmed its ongoing earnings per share guidance to be between $2.80 and $3.20.

AEP's management believes that 'ongoing earnings,' which are GAAP earnings adjusted for certain items, provide a more meaningful representation of the company's performance. They use this metric internally for performance measurement and externally when communicating their earnings outlook and results to analysts and investors.

AEP lists a broad range of potential factors that could cause actual results to differ materially from forward-looking statements. These include electric load and customer growth, weather conditions, fuel costs and availability, generating capacity performance, regulatory decisions (including environmental compliance and rate cases), litigation, economic climate in service territories, financial market conditions, commodity price volatility, and accounting pronouncements.