COLUMBUS, Ohio, Nov. 10, 2013 /PRNewswire/ -- American Electric Power (NYSE: AEP) has set its operating earnings guidance ranges and capital expenditure budgets for 2014 through 2016. AEP management will discuss the company's financial outlook and earnings growth strategy at the annual Edison Electric Institute Financial Conference that begins today in Orlando, Fla.
AEP narrowed its operating earnings guidance range (earnings excluding special items) for 2014 to $3.20 to $3.40 per share from its original guidance range set in February 2013. Confirming the company's previously announced growth rate of 4 to 6 percent off of its original 2013 guidance of $3.05 to $3.25 per share, AEP's operating earnings guidance range is estimated at $3.30 to $3.60 per share for 2015 and at $3.45 to $3.85 per share for 2016. Operating earnings guidance for 2013 was narrowed in October to $3.15 to $3.25 per share.
AEP reaffirmed its previously announced 2014 and 2015 capital budgets of $3.8 billion per year. The company also forecasted its 2016 capital investment budget at $3.8 billion.
In providing operating earnings guidance, there could be differences between operating earnings and Generally Accepted Accounting Principles (GAAP) earnings for matters such as impairments, divestitures or changes in accounting principles. AEP management is not able to estimate the impact, if any, on GAAP earnings of these items, and therefore is not able to provide a corresponding GAAP equivalent for earnings guidance."Our operating earnings projections for the next three years are supported by continued successful execution of the earnings growth strategy that we established early this year. That strategy is based on what we've proven we do well – growing our rate base through investment in our regulated operations and achieving cost savings through sustainable process improvements," said Nicholas K. Akins, AEP's president and chief executive officer. "Investment in our regulated utilities will be focused on infrastructure that enhances reliability and improves the customer experience. We will continue to allocate additional capital to our transmission business, and we expect the earnings contribution of AEP Transmission Holding Co. to nearly double in 2014," Akins said.