American Electric Power (NYSE: AEP) is one of the largest electric utility companies in the United States, delivering electricity to 5 million customers in 11 states.^[1] About 56% of its revenue comes from three key states: Ohio (32% of revenue), Oklahoma (14%) and Indiana (10%).^[2] The company can generate over 38,000 megawatts (MW), enough to power nearly 30 million homes, and has an extensive 39,000 mile transmission network.^[3][4] AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in Texas.^[5]

Weather can have a material impact on AEP's business. Generally, extremes of temperature benefit utility companies because they encourage customers to run either heaters or air conditioners. Unseasonably mild weather on the other hand, results in fewer heating and cooling days, leading to lower electrical demand and lower revenue for AEP.

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