American Electric Power (AEP) has announced significant leadership and organizational changes aimed at empowering local operations, driving growth, and creating value for customers and stakeholders. The changes, effective immediately, include the initiation of a search for a newly created president of AEP Transmission, responsible for leading the high-growth business.
In addition to creating a new leadership position, AEP is eliminating the executive vice president of regulatory and chief administrative officer role, resulting in the departure of Peggy Simmons. Furthermore, Chris Beam, executive vice president of energy services, plans to retire in February 2025 and will serve as executive vice president and senior advisor until then.
Shane Lies, executive vice president and chief nuclear officer, will transition to a new role as executive vice president of projects and services, overseeing generation shared services, environmental services, project solutions, distribution planning and performance, and strategic supplier management. Kelly Ferneau, site vice president at AEP’s Donald C. Cook Nuclear Plant, will succeed Lies and has been promoted to executive vice president and chief nuclear officer.
Moreover, Scott Dailey, AEP’s managing director of renewable generation and former plant manager at Cook Nuclear Plant, will succeed Ferneau as site vice president. AEP's other power plant managers will now report to the operating company presidents, and the economic development function will be transitioning to the operating companies.
Furthermore, corporate regulatory services and procurement will be aligned under the chief financial officer.
AEP President and CEO Bill Fehrman highlighted the importance of aligning the right individuals to the right roles and thanked Chris and Peggy for their years of contributions and dedicated leadership.
These changes come as AEP continues its significant investments in the electric grid, with plans to invest $43 billion over the next five years to make the grid cleaner and more reliable, aiming to achieve an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and net-zero emissions by 2045.
It's clear that AEP is making strategic moves to position itself for future growth and better serve its customers and stakeholders. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $98.2. Check out the company's full 8-K submission here.
