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Inside American Electric Power’s Troubling Generation Mix

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Changing generation mix of AEP

American Electric Power (AEP) has a coal-heavy generation mix. In the past 15 years, it has managed to reduce its coal generation by a mere 20%.

Notably, it’s expected to be a very capital-intensive task for coal-heavy power generators to switch to low-emitting energy sources if the US Clean Power Plan moves forward. Giants like Duke Energy (DUK) and Southern Company (SO) also have coal-dominated power mixes.

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Interestingly, in the next ten years, coal will still be AEP’s primary energy source. Of the total power, 48% of AEP’s generation is likely to come from coal in 2026.

However, with the recent sell-off of coal merchant capacity in Ohio, coal generation may reduce in the long term. Of the 5.2 gigawatts of total capacity being sold, 4.7 gigawatts of coal capacity are in Ohio.

But how have major utilities been performing in terms of sales growth? Continue to the next part to find out.

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