AEP cuts 1,000 employees through buyouts [story in text due to aggressive ad-blocking]

151

•

AEP cuts 1,000 employees through buyouts [story in text due to aggressive ad-blocking] (www.bizjournals.com)

AEP's "solid" first half ended with cuts.

About 1,000 American Electric Power Co. Inc. employees took voluntary buyouts offered by the company as part of its "efforts to address the impacts of inflation," interim CEO Ben Fowke said in a press release. That's roughly 6% of its workforce.

Some 7,400 of AEP’s 16,800 employees were eligible for the program, which provides two weeks of base pay for every year with the company (Nasdaq: AEP), according to its quarterly report.

"I'm grateful for their service to our company and our customers," Fowke said of those who took the deal.

"We'll begin to see the benefits of the program in the second half of the year, helping to offset higher interest rates and other inflationary pressures as we reinvest in the business to deliver for our customers."

The cuts came during the what Fowke called a "solid performance in the first half of the year."

Year-to-date revenue sits at $9.6 billion, according to AEP's announcement, up from $9.1 billion during the first half of last year.

"We're seeing unprecedented growth in portions of our service territory, supported by our robust transmission network and focus on economic development," Fowke said.

Fowke pointed to data centers when citing AEP's 12.4% commercial load increase. He also said the company is seeing "strong interest" from data center customers in Ohio, as well as Texas and its other "vertically integrated states."

That demand hasn't come without challenges, though.

The company's Buckeye state arm, AEP Ohio, filed a tariff proposal with the Public Utilities Commission of Ohio, calling for companies looking to set up data centers in the region "to have more skin in the game" by requiring them to make long-term financial commitments.

"Affordability remains top of mind, and we're working to ensure that the investments made in the grid to support this increased demand are allocated fairly and provide benefits to all customers," Fowke said in his earnings statement.

Bill Fehrman was named CEO of AEP last week. AEP also is preparing to welcome its next president and CEO, Bill Fehrman, who takes over Aug. 1.

The company has described Fehrman as an "industry veteran," who most recently served as president and CEO of Phoenix-based Centuri Holdings, where he helped the utility infrastructure company go public.

Fehrman will relieve Fowke, who has been serving in an interim role since former CEO Julie Sloat was removed from the position in February after well-known activist investor Carl Icahn’s firm, Icahn Capital L.P., secured two seats on the board. Sloat had only been in the role for a little over a year.

AEP is Central Ohio's second-largest public company, according to Business First research.

In its most recent fiscal year, the company made $18.98 billion and turned a $2.21 billion profit.

AEP's "solid" first half ended with cuts. About 1,000 American Electric Power Co. Inc. employees took voluntary buyouts offered by the company as part of its "efforts to address the impacts of inflation," interim CEO Ben Fowke said in a press release. That's roughly 6% of its workforce. Some 7,400 of AEP’s 16,800 employees were eligible for the program, which provides two weeks of base pay for every year with the company (Nasdaq: AEP), according to its quarterly report. "I'm grateful for their service to our company and our customers," Fowke said of those who took the deal. "We'll begin to see the benefits of the program in the second half of the year, helping to offset higher interest rates and other inflationary pressures as we reinvest in the business to deliver for our customers." The cuts came during the what Fowke called a "solid performance in the first half of the year." Year-to-date revenue sits at $9.6 billion, according to AEP's announcement, up from $9.1 billion during the first half of last year. "We're seeing unprecedented growth in portions of our service territory, supported by our robust transmission network and focus on economic development," Fowke said. Fowke pointed to data centers when citing AEP's 12.4% commercial load increase. He also said the company is seeing "strong interest" from data center customers in Ohio, as well as Texas and its other "vertically integrated states." That demand hasn't come without challenges, though. The company's Buckeye state arm, AEP Ohio, filed a tariff proposal with the Public Utilities Commission of Ohio, calling for companies looking to set up data centers in the region "to have more skin in the game" by requiring them to make long-term financial commitments. "Affordability remains top of mind, and we're working to ensure that the investments made in the grid to support this increased demand are allocated fairly and provide benefits to all customers," Fowke said in his earnings statement. Bill Fehrman was named CEO of AEP last week. AEP also is preparing to welcome its next president and CEO, Bill Fehrman, who takes over Aug. 1. The company has described Fehrman as an "industry veteran," who most recently served as president and CEO of Phoenix-based Centuri Holdings, where he helped the utility infrastructure company go public. Fehrman will relieve Fowke, who has been serving in an interim role since former CEO Julie Sloat was removed from the position in February after well-known activist investor Carl Icahn’s firm, Icahn Capital L.P., secured two seats on the board. Sloat had only been in the role for a little over a year. AEP is Central Ohio's second-largest public company, according to Business First research. In its most recent fiscal year, the company made $18.98 billion and turned a $2.21 billion profit.

(post is archived)