AEP Secures 13 GW of Gas Turbines and Options on 10 GW More as Its Large Load Pipeline Grows to 69 GW

American Electric Power Company, Inc. (NASDAQ: AEP), one of the largest electric utilities in the United States, disclosed on its Q2 2026 earnings call on July 30, 2026 that it has secured approximately 13 GW of gas turbine capacity deployable by 2031, adding 3 GW during the second quarter alone. The company also holds options for an additional 10 GW of turbines by 2035. Turbine suppliers are GE Vernova and Mitsubishi. Chairman, President and CEO Bill Fehrman described turbines as a scarce resource that will become increasingly more valuable, and said the company will continue to be aggressive in securing supply. The disclosure arrived alongside a contracted large load pipeline that grew to 69 GW, up from 63 GW in Q1 2026.

Turbines Underpin a $78 Billion Capital Plan Built Around Data Center and Industrial Load

AEP’s turbine strategy connects directly to the demand side of its business. The contracted large load pipeline of 69 GW spans data centers and large industrial customers across AEP’s service territory, with 45 GW in Texas, 12 GW in Ohio, and a further 12 GW split across Oklahoma, Indiana, Kentucky, Louisiana, and Virginia. Commercial and industrial sales grew 12.7% in the first half of 2026. To meet that demand, AEP’s resource plans call for adding 27.2 GW to its systems by 2035, comprising 15.3 GW of gas, 6.4 GW of solar, 5.1 GW of wind, and 500 MW of storage, supported by 7.8 GW of pending RFPs. The 13 GW of secured turbines will deploy across AEP’s regulated vertically integrated utilities and also position the company to replace aging coal plants and retiring gas units over the coming decade. AEP’s $78 billion five-year capital plan runs from 2026 through 2030, with an updated iteration expected this fall.

Longview Coal Plant Acquisition and PJM Relationship Both Improving

Beyond turbine procurement, AEP Ohio reached a deal to acquire the 710 MW Longview coal-fired power plant near Maidsville, West Virginia, alongside a permit to build a 1.2 GW gas-fired plant at the same site, according to the Financial Times. Financial terms remain undisclosed. The Longview acquisition gives AEP Ohio a strategic foothold in West Virginia as it plans the transition of that site from coal to gas. Separately, Fehrman struck a notably more constructive tone on PJM than he did three months ago, when AEP threatened to exit the grid operator over dissatisfaction with governance, large load interconnection, and resource adequacy. FERC held a technical conference on PJM governance changes on July 23, and Fehrman said the pace and intensity of productive conversations with PJM has significantly increased, adding that he is very optimistic that alignment around solutions is coming. The combined ROE across AEP’s regulated utilities reached 9.2%, up from 8.8% in 2023.

Q2 Financial Results Reflect Solid Operating Performance With a One-Time Prior-Year Comparison

Q2 2026 net income of $713 million compared against $1.2 billion in Q2 2025, but the year-over-year decline reflects significant one-time earnings in the prior period rather than any operational deterioration. On an operating basis, AEP’s performance remained consistent with its long-term 6% to 8% growth guidance. The company has a $78 billion capital plan and a DOE loan of up to $3.26 billion closed in July 2026 for AEP Texas transmission infrastructure, adding a low-cost federal financing layer to complement its equity and debt funding mix. AEP’s large load tariff frameworks require customers to make long-term commitments and provide strong protections against project delays, giving management confidence that the 69 GW pipeline translates into durable revenue rather than headline bookings that could evaporate.

Strategic Investment Summary

• Turbine Supply Secured: AEP (NASDAQ: AEP) secured approximately 13 GW of gas turbines deployable by 2031 from GE Vernova and Mitsubishi, adding 3 GW in Q2 2026, and holds options for an additional 10 GW by 2035 to replace retiring coal and gas capacity.
• Large Load Pipeline: The contracted data center and large industrial load pipeline grew to 69 GW in Q2 2026, up from 63 GW in Q1, with 45 GW in Texas, 12 GW in Ohio, and 12 GW across five additional states; commercial and industrial sales rose 12.7% in H1 2026.
• Resource Plan: AEP’s utilities plan to add 27.2 GW by 2035, comprising 15.3 GW of gas, 6.4 GW of solar, 5.1 GW of wind, and 500 MW of storage, supported by 7.8 GW of pending RFPs and a $78 billion five-year capital plan through 2030.
• Longview Acquisition: AEP Ohio reached a deal to acquire the 710 MW Longview coal plant in Maidsville, West Virginia, plus a permit to build a 1.2 GW gas plant at the same site, positioning the location as a future gas generation hub.
• PJM Relationship Improving: Three months after threatening to exit PJM, CEO Fehrman described a significantly more productive dialogue with the grid operator and FERC, expressing optimism about governance reform alignment ahead of a September deadline FERC set for PJM changes.
• Q2 Financials: Q2 2026 net income of $713 million reflected a year-over-year decline driven entirely by one-time earnings in Q2 2025; combined regulated ROE reached 9.2%, up from 8.8% in 2023, with a DOE loan of up to $3.26 billion closed in July 2026 for AEP Texas.

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