On July 7, American Electric Power rose 3.2% in regular trading, reaching $139.67 per share with turnover of $120 million.

The rally comes amid intensifying supply-demand imbalance across the PJM grid, the largest US regional power network serving approximately 67 million people. A heat dome driving temperatures near 100°F combined with surging data center electricity consumption pushed PJM to forecast peak load of 166.2 gigawatts, exceeding the prior 20-year record. PJM's overall operating costs have risen nearly 70% this year, with data center demand alone adding $3.8 billion in wholesale power costs. Additionally, the termination of US renewable energy tax credits for projects starting construction after July 4 is expected to push clean energy PPA prices up 40% to 120%, further reinforcing the value of traditional utility infrastructure.

Jefferies recently raised its price target on AEP to $154 from $147, maintaining a Buy rating, while the stock carries a consensus overweight rating with a mean target of $145.30. AEP's Q1 results exceeded expectations with EPS of $1.64 versus the $1.57 estimate, and the company announced an additional $6 billion capital plan targeting over 9% operating earnings CAGR through 2030.

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