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AEP sets $100 billion capital plan as contracted load reaches 84 GW
AEP announced the five-year plan on October 28, including about $37 billion for transmission and $36 billion for generation. Projected customer offsets are not bill savings already delivered.
By Greener Numbers Editorial Team · Published October 29, 2026 · Updated 10/29/2026
American Electric Power announced an expanded $100 billion five-year capital plan through 2031 in its October 28 earnings release. The company expects the plan to support rate-base growth above 13% a year over that period. These are planned investments and company projections, not a report that the assets are already built.
AEP says it signed 15 gigawatts of new load commitments during the third quarter, taking expected incremental contracted load to 84 GW by 2031. It includes projects backed by fully executed electric-service agreements or letters of agreement. Contracted future load is different from electricity being consumed today.
The plan includes approximately $37 billion for transmission, $36 billion for generation resources and $22 billion for distribution. Those categories describe different parts of the power system. The company says it expects its transmission rate base to approach $70 billion by 2031.
AEP expects up to $21 billion in fixed-cost offsets for existing residential customers over the lives of take-or-pay contracts in its vertically integrated states. That is a company estimate tied to those contracts, not a guaranteed cut to every household bill or savings already measured.
Third-quarter GAAP earnings were $1.187 billion, or $2.18 a share, compared with $972 million, or $1.82 a share, a year earlier. Operating earnings were $1.216 billion, or $2.23 a share. Operating earnings are a non-GAAP measure and should not be substituted for the GAAP result.
The announcement shows the scale of infrastructure AEP plans to fund as large-customer demand grows. Actual construction, costs and customer outcomes will depend on project execution, regulatory decisions and customer commitments. The plan should not be described as an all-renewable investment or proof that data-center growth has already lowered residential rates.