AEP is making changes to its energy and economic development strategies in response to state regulators' directives. These adjustments may affect the company's goal of achieving net-zero carbon emissions by 2045.
The new CEO, Bill Fehrman, acknowledges the challenges of transitioning away from coal and natural gas in predominantly Republican states, where such initiatives often face resistance. With the majority of AEP's states leaning Republican, Fehrman emphasizes the importance of aligning the company's objectives with the preferences of state leaders.
This trend reflects the broader influence of regulatory environments and political landscapes on sustainability targets in the utility sector.