American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 43 ables customers to buy Renewable Energy Certificates that represent power purchases of wind, solar and landfill gas. Wind power is the fastest growing source of renewable energy, accounting for approximately one-third of all new generation capacity in the United States last year – but solar, biomass, geothermal and hydroelectric energy are also in high demand. Small- to mid-sized renewable energy sources are relatively easy to tie into a customer’s facility or the distribution system, but developing large-scale renewable resources presents significant challenges. We need dramatic improvements in our nation’s electrical infrastructure (i.e., transmission) capabilities if we are to deliver on the American Wind Energy Association’s goal of providing 20 percent of the nation’s electricity from wind. This can be achieved only with major investments in a transmission system that can deliver wind energy from where it can be generated to where it is needed. The full potential of adding significant amounts of new large-scale renewable projects can best be realized through construction of a new, modern interstate extra-high voltage (EHV) transmission system that could carry the power from where it is produced to where it can be We invest in forestry projects because they support biodiversity while serving as an efficient method of carbon storage. We have not, however, been able to meet our 2007 goal to begin tripling our annual investments in forestry projects due to competition for private lands from crop producers. Such competition raises land costs substantially, making forestry offsets less cost-effective than other projects. In addition, the standards for forestry continue to be in a state of flux, so we are seeking projects that will “count” in the regulatory framework of the future. By expanding our original focus on forestry projects to include other kinds of verifiable domestic offsets, we remain on target to meet our post-2010 carbon offset goals. We will continue working through these emerging issues with our stakeholders to resolve differences of opinion to stay on track in terms of total climate change impacts. OUR INTERNATIONAL EFFORTS ON CLIMATE CHANGE AEP’s involvement with the World BusiThrough the e8, AEP helped develop a 2,400 MW wind project to protect a fragile ecosystem in the Galapagos Islands. It is certified as a Clean Development Mechanism under the Kyoto Protocol. ment (WBCSD) has provided us with an international forum to share technology, promote sound policy and identify lowcarbon options that provide a secure and used. A modern EHV transmission system would also lead to less wasted energy, fewer emissions and greater access to affordable energy. (Read more about AEP’s transmission vision in the Energy Security, Reliability & Growth section.) GREENHOUSE GAS OFFSETS sustainable electricity future. This is a step in the right direction to ensure that most of the burden of reducing CO 2 emissions doesn’t fall unfairly on the United States or on any other single nation. (For more information about our work with the WBCSD, see the Public Policy section.) Our leadership in the San Cristobal Wind Project in the Galapagos Islands, and in hosting one of two e8 environmental performance workshops, has facilitated other projects being undertaken through the e8 to share sustainable energy knowledge and expertise with developing nations. The United Nations showcased the San Cristobal Credible, enforceable greenhouse gas offsets are needed to address climate change. AEP is investing in a variety of offsets – including forestry projects and methane capture, and many stakeholders would like us to expand our reach even beyond our current efforts. Climate Change ness Council for Sustainable Develop-

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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