Business, Government Legal News from throughout WVAEP reports growth in quarterly and annual earnings

AEP reports growth in quarterly and annual earnings

AEP reported ongoing fourth-quarter 2011 earnings of $194 million, or $0.40 per share, compared with $179 million or $0.38 per share in fourth-quarter 2010.

Ongoing full-year earnings for 2011 were $1.504 billion or $3.12 per share, compared with $1.451 billion or $30.3 per share in 2010.

Ongoing earnings exclude special items, primarily consisting in 2011 of a Texas Supreme Court decision resulting in a $558 million net-of-tax favorable adjustment related to recovery of stranded costs in Texas.

"We had solid financial performance for both the fourth quarter and the year," said Nicholas K. Akins, AEP president and chief executive officer. "We benefited from favorable weather conditions throughout most of the year, and our industrial volumes were up 4 percent in 2011."

The company settled legal challenges regarding the construction of its John W. Turk Jr. Power Plant in Arkansas in 2011, Akins said, clearing the way for the plant to begin operation in late 2012.

And he reiterated continuing concerns about timelines in new regulations issued by the U.S. Environmental Protection Agency and possible impact on reliability. At the same time, he said, the issuance of the rules does provide some clarity on the future of the company's generation fleet.

The company is in the process of separating its Ohio operation into two businesses: a competitive generation company and a regulated transmission company, and has received approval to securitize funds related to the Texas decision, freeing $800 million for corporate growth and reduction of liabilities.

"AEP's shareholders received a more than 20 percent return on their investment for the year, including dividends that we increased by more than 2 percent late in the year," Akins said. The company declared a quarterly dividend Jan. 25 of 47 cents per share on common stock, compared with 46 cents for the year-ago period.

The company will announce its 2012 ongoing earnings guidance and capital spending plans on Feb. 10.

AEP trades its shares on the New York Stock Exchange under the symbol AEP.