AEP Affiliates Selected to Complete Approximately $1.7 Billion of Transmission Investments in PJM Region

• Transmission system upgrades approved by PJM Board
• Investments will improve reliability and deliver more power to meet growing demand

COLUMBUS, Ohio, Feb. 27, 2025  /PRNewswire/ -- American Electric Power (Nasdaq: AEP), and its competitive transmission affiliate Transource Energy, LLC¹ (Transource Energy) will invest approximately $1.7 billion in transmission system upgrades to improve reliability and increase power availability in states throughout the PJM footprint including Indiana, Maryland, Ohio, Virginia, and West Virginia. The companies' proposals were selected by the PJM Board to address forecasted conditions that would create reliability concerns.

"Energy demand is growing at a pace our nation has not seen in decades. Building or upgrading our infrastructure to continue delivering reliable power is essential to fueling economic growth and meeting the needs of our customers," said Bill Fehrman, AEP president and chief executive officer. "Our experience building the largest transmission system in North America made us an ideal candidate to help address the needs that PJM identified during their planning process. Our teams are ready to get to work engaging with our communities and stakeholders and are excited about being part of powering additional economic development opportunities in the region."

These projects were proposed through the Regional Transmission Expansion Plan (RTEP) process. Through the RTEP process, PJM asks transmission developers to submit project solutions to address transmission system needs and then selects the proposals that offer optimal solutions. PJM is seeking projects in this window to be in service in 2029.

AEP submitted project proposals last year with solutions ranging from constructing new lines and new stations to upgrading existing power lines and replacing existing substation equipment. Collectively, these projects are crucial for ensuring reliable electric service, maintaining affordability and meeting future energy demands.

Of the $1.7 billion of investments, approximately $1.1 billion will be advanced through Transource Energy as part of a joint venture with Dominion Energy and FirstEnergy Transmission, LLC. The joint venture, Valley Link Transmission Company, LLC, was selected to develop several competitive transmission projects, including two 765 kilovolt transmission lines in West Virginia, Virginia, and Maryland.

The remaining $600 million in projects were approved for AEP's Transmission Companies and operating companies in Indiana, Ohio and Virginia. All projects are in the early stages of development and the company is committed to collaborating with residents, local governments and other stakeholders in the project communities at every stage of the process. Engagement with stakeholders about the benefits of these projects is crucial as decision-making and planning progresses.

PJM is the regional transmission organization that coordinates the flow of wholesale electricity throughout a 13-state region and the District of Columbia.

ABOUT AEP

Our team at American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We are investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

¹ AEP participates in the competitive transmission space through Transource Energy, LLC, a jointly owned transmission company with Evergy, Inc., headquartered in Kansas City, Missouri. AEP owns 86.5% interest in Transource Energy.

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SOURCE American Electric Power