American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 21 Work Force Issues The health and safety of people is the most important part of who we are and what we do. Our employees have responded to this philosophy in the most profound and important way possible: we had no employee fatalities in 2007. Through collaboration, mutual care, hard work and a deeply shared commitment, we achieved a goal that has eluded AEP for a decade and that we have accomplished only twice in 37 years. Our safety goal is simple – no fatalities in any year. We believe so strongly in attaining this goal that, starting this year, all employee and senior management incentive plans will be directly tied to it. AEP’s continued success relies on a healthy, happy, skilled and agile work force that can adapt to rapidly changing work environments without compromising safety or service. As we develop the work force and the culture we need to meet tomorrow’s challenges, we must retain our current employees for as long as possible by meeting their needs, too. To this end, we offer 32 different work/life programs, including alternative work schedules. Our new military leave policy is another important way to meet our employees’ needs. We allow employees to take up to 10 days of unpaid leave per year to spend time with family members who are called to or return from active duty. Transferring knowledge from retiring to new employees remains a high priority for AEP and for the rest of our industry. Our employees are staying in the work force longer, which helps. AEP’s average retirement age climbed from 59 in 2003 to 61 in 2007. Diversity programs also help us grow the strong work force that we need. We are attracting more women and minorities to AEP than ever before, which is good news for AEP and for our future. 2007 2006 2005 2007 2006 2005 2004 Maintaining and operating our electrical system requires years of training and education. SAFETY & HEALTH— CHANGING BEHAVIORS, SAVING LIVES AEP believes in strong safety and health management. We focus on the human side of safety and health: preventing harm and protecting health so that every employee and every person we work with can return home safely every day. Our goal is detect and prevent rather than react and correct. Accomplishing this requires good policies, training, proper procedures, effective leadership, thorough planning, teamwork and hazard recognition – with reporting and corrective preventive actions as the keys to improvement. When an injury or nearmiss event occurs, we analyze it, learn from it and make changes again elsewhere. Our record, however, is not perfect. In January 2007, an explosion occurred when an AEP supplier was unloading hydrogen at our Muskingum River Plant, killing the delivery driver and injuring nine AEP employees. A pressure relief device failed prematurely, causing OSHA Citations (resulting in fines) Number of Citations Fine 6 3 1 6 $60,000 $ 5,500 $ 85,000 $ 83,100 Recordable & Severity Injury Rates (AEP versus industry peer group*) Recordable Recordable AEP Industry Severity AEP Severity Industry 1.76 1.66 2.35 N/A 2.57 2.68 42.83 31.77 43.91 N/A 29.17 28.59 * Industry peer group defined by EEI as an electric utility with 7,000 or more employees. T Kevin T. Brisbin, general servicer, Tulsa, Okla. Work Force Issues to prevent it from happening

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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