A Biden win would bolster American Electric Power's clean energy plans, CEO says

October 26, 2020

American Electric Power plans to push forward on its clean energy plans, whether the country reelects President Donald Trump or Joe Biden to the White House next month, CEO Nick Akins told CNBC's Jim Cramer on Monday.

The winner of the November contest, however, will play a factor in just how much progress the utility company will make on its progress in the coming years.

"We'll continue moving toward a clean energy economy," Akins, when asked how the election could affect its emissions agenda, said in a "Mad Money" interview, adding that shareholders "expect us to move in that direction and derisk our company going forward from that perspective, and we'll continue that approach."

Trump, who recently recovered from Covid-19, continues to crisscross the country in efforts to close his gap with Biden in the polls. With Biden carrying a wider lead in both national and some state vote forecasts than the 2016 Democratic nominee, Hillary Clinton, had against Trump, Wall Street players have been taking into account how a Biden presidency would impact American businesses.

Biden has a $1.7 trillion plan to address climate change that would extend tax credits to incentivize companies to create more wind and solar energy production plants. His plan contrasts Trump's desire to continue growing both the oil and coal industries.

American Electric Power, which is based in Columbus, Ohio and produces and distributes electricity, has made investments to reduce its reliance on coal. The company says it has reduced carbon dioxide emissions by 65% in the past two decades.

Some of its sustainable energy goals include investing more than $2 billion in renewable energy by 2024, reducing carbon dioxide emissions by 70% by 2030, building more wind and solar capabilities by 2030 and creating a more modern power grid.

"If a Biden administration comes in, we certainly expect more aggressiveness in terms of the targets, but we're already moving forward very quickly and we'll continue to focus on that as we move forward," Akins said.

Shares of American Electric Energy rose nearly 2% to $93.59 Monday, despite a roughly 2% fall in the major market indexes.

Though the stock has risen more than 43% from its lowest point in the March coronavirus-induced sell-off, the stock remains down about 1% year to date.

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