October 19, 2023
AEP Selected to Receive Federal Grant to Enhance Grid Reliability
American Electric Power (Nasdaq: AEP) has been selected for a $27.8 million federal grant under the U.S. Department of Energy’s Grid Resilience and Innovation Partnerships (GRIP) program to help improve service and build a more modern, responsive electric grid for customers across its footprint.
The grant will fund part of the cost to implement more advanced systems and new technologies that will enhance AEP’s ability to reduce service interruptions and minimize the duration of outages through smart devices that optimize power delivery for customers. The systems also will allow AEP to visualize, manage and control the electric grid as new distributed energy resources are integrated into the grid.
“This project supports our ongoing work to strengthen the reliability, resiliency and efficiency of the grid in a cost-effective way for customers,” said Peggy Simmons, AEP’s executive vice president – Utilities. “It will deliver significant benefits to customers throughout our service territory, improving our ability to manage outages and providing more flexibility in operating the grid as it continues to evolve with the addition of new resources and capabilities. We look forward to working with the U.S. Department of Energy and our state regulatory commissions on the next steps to bring these benefits to our customers.”
The GRIP grant program was created as part of the federal Infrastructure Investment and Jobs Act signed into law in November 2021. The first round of funding under the program was announced Oct. 18, 2023.
The grant supports AEP’s deployment of an Advanced Distribution Management System (ADMS) that enhances the ability of system operators to monitor and control the grid to maintain a safe and reliable distribution network. It combines real-time distribution grid data with network model visualization, improving situational awareness for operators and allowing a greater level of flexibility and visibility into the grid. The ADMS tools support outage restoration, grid optimization, fault location, isolation and restoration, switching analysis and load flow.
The Distributed Energy Resource Management System (DERMS) is part of the ADMS platform. DERMS provides visibility into the distributed energy resources that are connected to and interacting with the grid, allowing operators to plan and manage the flow of those resources on the system.
The grant is subject to final agreement between AEP and the U.S. Department of Energy on terms and conditions.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP’s approximately 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 225,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy. The company’s plans include growing its regulated renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP’s family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in 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. For more information, visit aep.com.
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AEP Reports Third-Quarter 2023 Earnings, Narrows Guidance While Maintaining Midpoint
- Third-quarter 2023 GAAP earnings of $1.83 per share; operating earnings of $1.77 per share
- 2023 operating earnings (non-GAAP) guidance range narrowed to $5.24 to $5.34 per share, midpoint maintained at $5.29
- Long-term growth rate of 6% to 7% and FFO/Debt target of 14% to 15% reaffirmed
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