Jefferies Comments On AEP's 1Q11 Results

According to Jefferies, American Electric Power AEP reported 1Q11 operating earnings of $0.82, versus its estimate of $0.75, above First Call consensus of $0.80, and versus $0.76 in 1Q10. Jefferies said that management provided some color on the capital costs to retrofit AEP's coal fleet with recently proposed EPA rules (coal ash, 316b water, and air-HAPS). “The capital costs for the Ohio companies is $1.7-$3.3 billion, which has some investors concerned these charges may not be recoverable in rates.” American Electric Power closed on Thursday at $35.53.