American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 19 Challenge Goal Progress 2006 – 5.5 million gallons gasoline; 4.7 million gallons diesel fuel; 324,000 gallons B20 biodiesel. 2005 – 5.5 million gallons gasoline; 4.7 million gallons diesel; 4,000 gallons B20 biodiesel. Offset or reduce GHG emissions from mobile fleet, including corporate aircraft. Mobile fleet emissions offset through market-based carbon credits purchased through CCX. AEP will purchase 66 hybrid cars, 110 flex fuel vehicles, and 24 hybrid bucket trucks. Enhance and expand office recycling program to reduce office waste. Contract negotiated for systemwide program in 2007; program rolled out early 2008 to be completed by year-end. During 2007 installed and brought online pollution controls to reduce SO2 emissions on 3,500 MW of generation; controls to reduce NOx emissions began operating on 1,600 MW of generation. Under AEP’s court-approved NSR settlement, additional pollution controls will be installed at other plants. For a full overview of this agreement, please visit www.AEP.com/cr/nsr. AEP’s environmental compliance requirements drive a $5.4 billion program to install environmental controls on coal-fired power plants to meet requirements of the Clean Air Act and EPA’s NOx State Implementation Plan rule and initial requirements of the Clean Air Interstate Rule (CAIR). Complete environmental compliance program by 2010. The availability of water to make electricity and meet society’s needs is increasingly important because of impacts from climate change and population growth. Nuclear energy will play an increasingly important role in our nation’s energy future, but managing nuclear waste storage remains a significant challenge. Initiate a study to review consumption patterns and identify opportunities to set goals to reduce water consumption at AEP facilities. N/A Begin on-site dry cask storage of spent fuel at Cook Plant, starting in 2011. Reduce storage needs. Participate in national effort to develop permanent solution. Decision made to develop on-site storage facilities at Cook Plant. Identified process improvements to reduce storage needs. Ongoing work with policymakers and others to achieve a long-term storage solution. First utility to join Green Suppliers Network. Three AEP suppliers agreed to participate. Sustainable supply chain development is new to the utility industry but has become increasingly important as we seek to reduce our environmental impacts; will regulators approve cost recovery when costs may be higher because of performance standards regarding sustainability? Work with suppliers on a range of issues, including environmental impacts and improving safety and health performance. Develop a process for evaluating coal suppliers’ environmental, safety and health performance and set expectations. Implement by end of 2010. Work with stakeholders and industry peers. Collaborate with industry peers for industrywide changes that have positive environmental impacts and/or improve safety and health for suppliers and for companies. Began to develop process for evaluating environmental, safety and health practices of coal suppliers. Began discussions with coal suppliers. Initiated industrywide, monthly best practices supply chain conference call. Environmental Performance Build all new facilities and improve efficiency of existing buildings using Leadership in Energy and Environment Design (LEED) standards, where appropriate. Seek LEED certification. Initiated $100 million, five-year commitment to invest in green building initiatives across AEP through Clinton Global Initiative. New Transmission Operations Center in Ohio and service centers in Indiana, Arkansas and Texas will be “green” under this initiative. http://www.AEP.com/cr/nsr

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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