FORWARD-LOOKING INFORMATION This report made by the Registrants contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Many forward-looking statements appear in “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations,” but there are others throughout this document which may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue” and similar expressions, and include statements reflecting future results or guidance and statements of outlook. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements in this document are presented as of the date of this document. Except to the extent required by applicable law, management undertakes no obligation to update or revise any forward-looking statement. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: • Changes in economic conditions, electric market demand and demographic patterns in AEP service territories. • Inflationary or deflationary interest rate trends. • Volatility in the financial markets, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt. • The availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material. • Decreased demand for electricity. • Weather conditions, including storms and drought conditions, and the ability to recover significant storm restoration costs. • The cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and SNF. • The availability of fuel and necessary generation capacity and the performance of generation plants. • The ability to recover fuel and other energy costs through regulated or competitive electric rates. • The ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs. • New legislation, litigation and government regulation, including oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets. • Evolving public perception of the risks associated with fuels used before, during and after the generation of electricity, including coal ash and nuclear fuel. • Timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance. • Resolution of litigation. • The ability to constrain operation and maintenance costs. • Prices and demand for power generated and sold at wholesale. • Changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation. • The ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives. • Volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas. • Changes in utility regulation and the allocation of costs within RTOs including ERCOT, PJM and SPP. • Changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market. • Actions of rating agencies, including changes in the ratings of debt. • The impact of volatility in the capital markets on the value of the investments held by the pension, other postretirement benefits, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements. • Accounting standards periodically issued by accounting standard-setting bodies. iv