American Electric Power 2008 Corporate Sustainability Report

2 Leadership, Management & Strategy Leadership, Management & Strategy DEAR FRIENDS & COLLEAGUES, tive responsibility, one that we must embrace and share. I will never stop making that point. We must not take shortcuts or unsafe actions that can have dire consequences to us, our coworkers or our families. We took a major step toward creating a sustainable future last year by obtaining a far better understanding of how our stakeholders want us to measure, manage and account for the full range of our impacts, both positive and negative. Technology can and will provide many solutions, but not without the support and trust of our stakeholders, who have to live with the results of that technology. We must be allowed to test and validate these new technologies and we need their support for this. Stakeholder engagement is making AEP a better company. This year we engaged many more stakeholders in the process. These thoughtful discussions gave us a greater understanding of who we are and what is expected of us, much of which is reflected in this report. Scientific evidence has led us to conclude that human activity has contributed to global warming. We will continue to be part of local, national and international efforts to find a reasonable, achievable approach to carbon controls. We are working to develop federal legislation that combines a mandatory cap-and-trade program with provisions to ensure the participation of all countries. We believe strongly that carbon caps must have broad bipartisan support and not cause serious harm to our economy. Federal climate policy must recognize coal’s vital role in our nation’s energy independence; we cannot afford to turn our back on this abundant, domestic resource. We support a more diversified and domestic-based energy supply mix, increased energy efficiency and greater investment in new energy technologies. We took a leading role in addressing climate change on the international stage last year. AEP was one of 10 global companies that worked with the World Business Council for Sustainable Development’s Electricity Utilities Sector Project to identify short- and long-term technology solu- Imagine a world where electricity is assured; where technologies enable power plants to run cleaner and help consumers to use energy more efficiently; where nations come together to address climate change and where economies and communities prosper and grow. Imagine a world in which you control the amount, timing and price of the electricity you use. At American Electric Power (AEP), we are not just imagining this world, we are working toward it. And sustainability is our road map. Electricity is necessary for a modern society, yet its very production has adverse impacts on society. AEP produces more greenhouse gases than most electric companies in the United States, so we have an increased responsibility to be part of the climate change solution, internationally, nationally and locally. For more than a century, AEP has created new ways to provide power for today while preparing for the needs of tomorrow. While others may watch and wait, we move aggressively to meet those challenges in new and exciting ways. We maintain our leadership by innovating and by turning responsibility into opportunity through technology and efficiency. Our employees play a key role in leading us forward and their well-being is our paramount concern. We accomplished a goal in 2007 that had eluded us for 10 years: no AEP employee lost his or her life while working. I am profoundly thankful and relieved about this, and I am determined that we continue to do more to prevent fatalities and injuries in this year and in the future. I am unhappy to report, however, that last year we had more recordable injuries and more safety inspections and fines from the Occupational Safety & Health Administration than in 2006. Our goal is to be “best in class” by 2010 and we must intensify our commitment to get there. We also must insist that our contract work force improve their safety performance, or they will not be allowed to work for AEP. Safety and health are a personal obligation and a collec-

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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