American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 11 Environmental Performance Our success as a company is based on many factors, one of which is executing excellent environmental programs that address a variety of issues. This section presents those programs and their results – of which we are quite proud, but which we constantly seek to improve. We have recently taken first steps toward expanding our environmental efforts to include our use of natural resources and the activities of our suppliers. From our “green” building initiative announced in conjunction with the Clinton Global Initiative to our focus on working with our suppliers on sustainable initiatives, we are leveraging our resources and expertise as broadly and deeply as we can. COMPLIANCE back mechanism for our employees and executives. We set internal environmental goals each year that are tied directly to the company’s incentive compensation program. We also conduct our own environmental audits, covering both federal and state requirements. In 2007 we audited five service centers and 31 power plants to assess their environmental compliance and capacity to remain in compliance. Our internal reviews generally showed our environmental programs to be functioning effectively at all locations visited. While overall performance has improved, the audits identified opportunities both to correct and enhance our environmental programs. By year end, all corrective actions identified were complete or in process. Our primary challenge now is to communicate individual audit results more effectively across business units so they can become shared learning, in order to prevent similar occurrences elsewhere. Managing Environment, Safety & Health (MESH) is an initiative to conform to the international environmental management system standard ISO 14001, and to increase knowledge and awareness to drive continuous performance improvement. Through MESH, 12 power Environmental Performance For AEP, compliance is both a legal requirement and a social responsibility – it is a fundamental expression of our regard for society. It is unacceptable for us to be out of compliance at any time and we are dedicated to achieving our goal of zero environmental enforcement actions. During 2007, we were cited with two formal environmental enforcement actions, compared with nine in 2006. One was related to a landfill issue at our MountainAEP uses a variety of methods to deliver coal, including trucks, barges and rail. eer Plant in West Virginia and the other to our inability to meet a new water quality permit limit at the Comanche Plant in Oklahoma. In 2007, federal, state and local regulatory agencies conducted 112 inspections of our power plants, 15 inspections of our utility operations facilities and 344 inspections of our fuel operations facilities. These resulted in one of the two formal enforcement actions received last year. That does not mean we were perfect all but a couple of times; these inspections point out general areas where improvement is needed. Understanding the requirements and expectations of regulatory agencies is a critical part of our environmental program, and these inspections provide an important feed- plants are improving management of their significant environmental aspects. This includes improving heat rates to operate the plants as efficiently as possible and subsequently reduce air emissions, and improving preventive maintenance on pollution control equipment to minimize environmental impacts. We are also working with regulators to manage water resources by using water for cooling and cattle and livestock use. We are improving storm water outflows to prevent soil and erosion run-off and improving the identification and management of environmental aspects at our construction sites. (See Work Force Issues to read about the MESH initiative’s work to improve safety and health management.) T Tamisha Palmer, chemical lab technician, Dolan Chemistry Laboratory

Table of Contents Feed for the Digital Edition of American Electric Power 2008 Corporate Sustainability Report

American Electric Power 2008 Corporate Sustainability Report Contents Leadership, Management & Strategy A Message from Michael G. Morris A Message from Dennis E. Welch About This Report Environmental Performance Work Force Issues Public Policy Climate Change Energy Security, Reliability & Growth Stakeholder Engagement Glossary GRI Table of Contents

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