American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 27 Challenges, Goals, Progress { Work Force Issues } Challenge Achieving top quartile performance within the electric industry by 2010, as measured by recordable and severity incident rates, requires a major shift at AEP in behaviors and attitudes about safety and health (benchmarking performance against comparably sized EEI companies). Goal Recordable Rate – Goal: 2008 – 1.70 2009 – 1.45 2010 – 1.24 2011 – 1.12 Hazard recognition training incorporates risk assessment and adequacy of controls. Focus on proactive behaviors to prevent harm, detect weaknesses in the safety and health management system, hold people accountable when we fail and reward/recognize successes. Every employee, at all levels, has compensation tied to safety and health performance. Explore at least one opportunity to partner with OSHA on a meaningful work force issue. Establish leading indicators to measure safety and health performance. Progress Recordable Rate: 2007 – 1.76 (goal was 1.99) 2006 – 1.66 2005 – 2.35 2004 – 2.19 Hazard recognition training initiated across AEP and began to affect overall performance. Developed Safety & Health Event Management System to track safety and health performance; identify trends; and adjust training, procedures and implement corrective and preventive actions, etc. to prevent injury/harm. Launched Jan. 1, 2008. Initiated Significant Event Calls with business units to share information about significant events in a timely way. Five Significant Event Calls held in 2007. Muskingum River Plant will submit application for OSHA’s Voluntary Protection Program in addition to conforming to OHSAS 18001. Conducted audit site visits at 13 power plants, including a comprehensive audit of Northeastern Station (units 3 & 4); eight other plants audited for OSHA record-keeping and Control of Hazardous Energy procedures. Pilot audit of AEP Ohio started. Among issues identified is need to improve training effectiveness. Severity Rate – Goal: 2008 – 30.07 2009 – 25.56 2010 – 21.73 2011 – 19.58 Severity Rate: 2007 – 42.83 (goal was 35.38) 2006 – 31.77 2005 – 43.91 2004 – 53.00 Severity rate was high because injuries were more serious, resulting in more lost work days or restricted duty days. Slips, trips and falls were main causes of serious injuries. OHSAS 18001: Phase 1 rollout at 12 power plants in 2007. Seven additional plants and all hydro plants will begin implementation in 2008. OHSAS 18001: Long-term conformance with this standard will be reflected in recordable and severity rates. Complete first phase of rollout to all power plants by end of 2012. It is imperative we eliminate worker fatalities. AEP’s history tells us the risk for job-related fatalities is high. Zero AEP employee fatalities. Through greater emphasis on hazard and risk recognition, proactive injury prevention activities, sharing best practices and lessons learned from near-misses, we expect and will accept no more than zero fatalities. Zero employee fatalities in 2007 – first time in 10 years; only the second time in 37 years. 2006 – 1 employee fatality Work Force Issues

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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