American Electric Power, also known as American Electric Energy, is an international investor-owned power utility in the USA, serving over five million residential customers in eleven states. The name American Electric Power was originally derived from an initial settlement between E.P. Jameson and John D. Rockefeller. The company is now publicly traded on the New York Stock Exchange under the ticker symbol “AEP.”
With over one hundred five thousand employees and more than three thousand miles of distribution lines, AEP is responsible for the generation of about eighty percent of the electric power sold in the USA. They are also the second largest supplier of power for the State of Tennessee.
AEP has an excellent customer satisfaction record, but is also known to have had some very costly blunders in the past. Their failure to properly consider the risk involved in high levels of fuel price volatility has led to many expensive and disruptive “black swans.”
Because of this history, and due in large part to AEP’s reliance on natural gas to generate most of their power, many people in rural areas in America have been adversely affected by the rise of oil prices. While high fuel prices can be difficult to adjust for many people, many in the industry view it as an advantage, since it creates demand for clean, lower-cost energy.
Over the years, American Electric Power has faced tough times due to the economy in general, and the recession in particular. Due to these problems and many other things, AEP has taken some drastic measures, such as the closure of a number of power plants, while maintaining some of their operations at other sites. In addition, they have faced substantial losses from several investments, including the closure of a nuclear plant.
Although they are still operating in many areas of the USA, including in Kentucky, Oklahoma and Texas, there is much uncertainty about their future. Although the future is looking brighter, it is difficult to determine when AEP will recover and return to growth in the future.
With so many different options for generating electricity, including wind, geothermal, coal and gas, there are some reasons why many people in the USA chose to turn to AEP to power their homes and businesses. They have an efficient way of converting the energy in the wind, geothermal and coal into usable electricity.
In addition, AEP has a well established system that allows them to keep the cost of their power down, while maintaining reliability in the electric power market. In some cases, this means they can sell their power at a reduced price. or even for free in order to keep up with the ever increasing price competition.
It is difficult to accurately predict the future of American Electric Power. due to the current economic problems in the United States, but it is safe to say that the future holds positive news for them and others in the energy field. As energy prices continue to rise, AEP will continue to diversify and increase production to provide customers with a reliable source of clean and cost effective electricity.