12 Best Utility Stocks to Buy According to Hedge Funds

9. American Electric Power Company, Inc. (NASDAQ:AEP)

Number of Hedge Fund Holders: 36

American Electric Power Company, Inc. (NASDAQ:AEP), based in Columbus, Ohio, is one of the largest electricity producers in the United States with about 29,000 megawatts of diverse generating capacity. The company serves approximately 5.6 million customers in 11 states including Texas, Ohio, Indiana, and Kentucky.

American Electric Power Company, Inc. (NASDAQ:AEP) is strategically focusing on capitalizing on the load growth opportunities driven by Data Center and AI sectors. The company has received customer commitments for 20 gigawatts of load additions through 2029 and has updated its load growth forecast accordingly through 2027. American Electric Power Company, Inc. (NASDAQ:AEP) is now engaging with regulators and stakeholders to ensure that the costs associated with these new loads are fairly allocated to benefit all customers. American Electric Power Company, Inc. (NASDAQ:AEP) has recently filed data center tariffs and large load tariff modifications to address these needs and maintain affordability. By doing so, the company aims to have operational and maintenance discipline to keep customer rates affordable despite rising costs and a growing rate base.

American Electric Power Company, Inc. (NASDAQ:AEP) has introduced a $54 billion capital plan for 2025-2029, representing a 25% increase from its previous five-year plan. This investment is primarily focused on infrastructure and new generation. Furthermore, American Electric Power Company, Inc. (NASDAQ:AEP) is also exploring opportunities for asset monetization and efficiently monetizing tax credits related to its renewable generation and nuclear facility investments.