American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 33 be tailored to each state’s regulatory requirements and will be promoted by the individual operating companies. Proposals to some state regulators began in 2007. We have committed that 15 percent of these efficiencies will come from within – reduced energy consumption at our facilities, transformer efficiencies, etc. The remaining 85 percent will come from customer programs. (For more about AEP’s position and actions on energy efficiency and DSM, see the Climate Change section. For a state-by-state overview of where we made progress in 2007, visit www.AEP.com/cr/ energyefficiency.) LOBBYING tions that represent its service territory, as well as with relevant committee members from outside the service area. With the passage of new federal ethics legislation, AEP is reviewing and updating all of its data collection systems to ensure compliance with enhanced registration and reporting requirements for lobbyists. In 2007, AEP spent approximately $1.7 million to lobby on energy legislation and tax credits. POLITICAL INVOLVEMENT AEP endeavors to develop AEP advances its public position through the use of state and federal lobbyists, most of whom are full-time employees who have diverse backgrounds in the company. Many have worked in the operations of our companies and understand the physical as well as policy aspects of our operations. AEP has employee lobbyists in ” Responsible Government, as well as state PACs in Michigan, Ohio, Texas and Virginia. Eligible employees can make voluntary contributions. The PACs Leah Miller, Small Farm Institute, Ohio nearly every state in which we have a presence, as well as in Washington, D.C. Our lobbyists are part of our overall effort to represent AEP’s interests and the interests of our customers. At the state level, our lobbyists work on such issues as taxes, market structure, siting, eminent domain and state environmental initiatives. They also help manage cost recovery from a legislative perspective – working to ensure that cost recovery regulation is included in all new legislative mandates. At the federal level, AEP tracks federal legislation through its Washington office as well as through the work of its primary trade associations, including the Edison Electric Institute and the Nuclear Energy Institute. AEP works with all of the members of the congressional delega- are employee-controlled and not affiliated with any political party but do make donations to political candidates. AEP pays the administrative expenses of running the PACs to the extent allowed by law, spending approximately $300,000 on PAC support in 2007. AEP’s federal PAC files monthly reports with the Federal Election Commission (FEC). Reports are available at the FEC’s web site at www.fec.gov. Reports for AEP’s state PACs are filed with the respective states and are available through those states’ web sites. In 2007 we committed to track and report on trade association dues and memberships that may be used for political purposes. That same year, we asked trade associations to which our dues or payments are significant to provide us with a breakdown of what portions are used Public Policy Have we really kept electricity rates too cheap, as you say? If so, that tension is missing from your public policy strategy and is impacting AEP’s ability to maintain and expand its infrastructure. AEP’s public policy should be a framework to direct the short- and long-term vision of the company. “ strong working relationships with regulators and policymakers and encourages employees to get involved in the political process. We sponsor a federal political action committee (PAC), the American Electric Power Committee for http://www.aep.com/cr/energyefficiency http://www.aep.com/cr/energyefficiency http://www.fec.gov

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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