AEP Locks Up 13 GW of Gas Turbines Through 2031, Eyes 10 GW More
American Electric Power has locked up 13 GW of gas turbine capacity deployable by 2031 and secured options for another 10 GW by 2035, Utility Dive reports, citing comments from CEO Bill Fehrman on the company’s July 30 earnings call.
Market Impact
AEP added 3 GW of turbine capacity in the second quarter alone, bringing its total contracted supply to roughly 13 GW through deals with GE Vernova and Mitsubishi, according to Fehrman. He called turbines “a scarce resource” that “will become increasingly more valuable,” adding that AEP will “continue to be aggressive in our positions” as it works with suppliers on framework agreements to secure future capacity.
AEP CFO Trevor Mihalik said the timing of the additional 10 GW aligns with the utility’s aging fleet, positioning AEP to replace retiring coal and gas plants across its vertically integrated utilities. The company’s utilities plan to add 27.2 GW of new generation by 2035, including 15.3 GW of gas, 6.4 GW of solar, 5.1 GW of wind and 500 MW of storage, per AEP’s earnings presentation. Pending RFPs across AEP’s utilities total 7.8 GW.
The build-out is backed by a $78 billion five-year capital plan running through 2030, with an updated version expected this fall. AEP’s contracted large-load pipeline, driven largely by data centers, grew to 69 GW in the second quarter, up from 63 GW in Q1, with 45 GW concentrated in Texas and another 12 GW in Ohio. Separately, AEP Ohio has agreed to buy the 710-MW coal-fired Longview plant near Maidsville, West Virginia, along with a permit for a 1.2-GW gas plant at the same site, according to a Financial Times report cited by Utility Dive. Terms of that deal were not disclosed.
What It Means for Subcontractors
- Mechanical and E&I subs bidding gas-plant work for AEP’s regulated utilities should plan around a 2031 turbine delivery horizon for the initial 13 GW tranche, with a second wave tied to 10 GW of options running through 2035.
- Expect tighter turbine allocation across the sector as GE Vernova and Mitsubishi commit capacity to AEP under framework agreements. Subs on competing utility-scale gas projects should build price escalation and turbine-delivery contingency clauses into bids now.
- Civil and site-prep contractors should watch the Longview site in Maidsville, West Virginia, where AEP Ohio holds both an existing 710-MW coal plant and a permit for a 1.2-GW gas plant. No project timeline or subcontract packages have been announced yet.
- Firms serving AEP’s 7.8 GW of pending RFPs across its regulated utilities should track filings in AEP’s home states (including Ohio, Texas, Oklahoma, Indiana, Kentucky, Louisiana and Virginia) as the company finalizes its next five-year capital plan this fall.
- Contractors supporting data center interconnection work in Texas should note AEP’s large-load tariffs require long-term customer commitments, which Mihalik said provide “protections against project delays,” a signal that funded, contracted load growth (45 GW in Texas alone) is likely to convert to real construction schedules rather than stalling in planning.
