Joint development plan aimed at benefitting Hoosiers without raising costs for customers

• Companies working together to study the feasibility of a small modular reactor project in Sullivan County, Indiana, in coordination with state and local stakeholders
• Development and funding agreements designed to provide financial safeguards for AEP's customers and investors
• If the project moves beyond the development phase and is constructed, 960 megawatts of X-energy's advanced nuclear generation technology expected to connect directly to the grid to provide safe, reliable energy

COLUMBUS, Ohio, Oct. 19, 2026 /PRNewswire/ -- As energy demand grows, American Electric Power (Nasdaq: AEP) is exploring new ways to bring reliable power to the grid while prioritizing affordability for Indiana Michigan Power (I&M) customers and mitigating business risk. AEP today announced a joint development agreement with X-energy (Nasdaq: XE) to evaluate the feasibility of constructing a 960-megawatt (MW) advanced nuclear energy project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting the project's development through a funding agreement.

If the development project reaches a final investment decision and moves forward with construction and commercial operation, the completed facility would add safe, clean, reliable electricity to the grid using X-energy's Xe-100 small modular reactor technology. Amazon intends to purchase the power under a long-term contract, covering the costs of the facility and its operations for the duration of the contract.

This collaboration combines AEP's power generation and nuclear operating expertise, Amazon's commitment to development capital and long-term power purchase, and X-energy's advanced nuclear technology to explore the development of a clean, safe, long-term energy solution to benefit customers and foster economic development in Indiana.

"Advanced nuclear energy has the potential to provide dependable power for over half a century while supporting economic growth in our communities. With this development plan, we are working to bring together the resources to help meet unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers," said Bill Fehrman, AEP chairman, president and chief executive officer. "Our agreements with Amazon and X-energy will provide all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward."

X-energy's Xe-100 is an advanced nuclear technology designed to provide safe, reliable energy in a compact footprint. The initial project would include 12 Xe-100 units of 80 MW each, configured in groups of four, for a total of 960 MW.

The companies are evaluating the former site of I&M's Breed Generating Station in Sullivan County, Indiana, as a location for the potential project. Sullivan County recently became part of the Indiana Advanced Nuclear Ready Communities Program that supports the opportunity for an advanced nuclear project.

Indiana Governor Mike Braun said, "Indiana is building an energy future that prioritizes affordability for Hoosier families and businesses while driving economic growth. The decision by I&M/AEP, Amazon and X-energy to explore this technology in one of Indiana's counties represents the kind of innovation and investment that can deliver lasting benefits for our state. This project has the potential to create well-paying jobs in Sullivan County, strengthen our electric grid and further position Indiana as a national leader in advanced nuclear energy."

Should the project advance beyond the development phase into construction and commercial operation, it is expected to create jobs, expand the local tax base and strengthen Indiana's energy infrastructure for more than 60 years.

As the potential project moves forward, the companies are committed to working closely with local leaders, residents, regulators and other stakeholders.

"At Amazon, we are committed to serving the needs of our customers and achieving our Climate Pledge goal to be net-zero carbon across our operations by 2040," said Josh Weissman, VP of Data Center Infrastructure Capacity Delivery at Amazon. "This collaboration with AEP and X-energy would enable us to make progress on both while ensuring that Indiana's communities benefit. Together, we're looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others. This project would also create jobs and generate tax revenues to benefit Hoosier communities for decades to come."

J. Clay Sell, CEO of X-energy, said, "This effort pairs AEP's 50 years of excellence in nuclear operations with the world-class expertise of Amazon to chart a new course for Indiana's energy future, powered by our Xe-100 small modular reactor. Together, we're working to advance a clean, safe, reliable solution to meet growing energy demand and benefit Indiana and its communities for generations to come."

ABOUT AEP

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 33,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Ohio Power Company, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

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SOURCE American Electric Power