AMERICAN ELECTRIC POWER CO INC (AEP): restructuring charge — PUCT disallowance forces SWEPCo to record $80-90M pretax impairment on Turk Plant

AMERICAN ELECTRIC POWER CO INC

SWEPCo expects $80-90M pretax non-cash disallowance in Q4 2023 after PUCT preliminary order.
PUCT will not address SWEPCo's request to exceed $1.522B Texas Capital Cost Cap in remand.
Potential customer refunds of $0-200M (incl. interest) for revenues from Feb 2013 to Dec 2023, though not probable.
AEP reaffirms 2024 operating earnings guidance, 6-7% long-term growth, and 14-15% FFO/Debt target.
Impairment excluded from AEP's 2023 Operating Earnings (Non-GAAP); SWEPCo plans to challenge ruling.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

AMERICAN ELECTRIC POWER CO INC announced a impairment with charges of anticipates recording a pretax, non-cash disallowance ranging from $80 million to $90 million in the fourth quarter of 2023 affecting SWEPCo Turk Plant.

Type: impairment
Charge: anticipates recording a pretax, non-cash disallowance ranging from $80 million to $90 million in the fourth quarter of 2023
Affected area: SWEPCo Turk Plant

Exact text from the filing

As a result of the PUCT’s approval of the preliminary order, SWEPCo believes it is probable the PUCT will disallow capitalized AFUDC in excess of the Texas Capital Cost Cap and anticipates recording a pretax, non-cash disallowance ranging from $80 million to $90 million in the fourth quarter of 2023.

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6 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

AMERICAN ELECTRIC POWER CO INC filing history →

Source: SEC EDGAR

accession 0000004904-23-000150

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