American Electric Power 2008 Corporate Sustainability Report

44 Climate Change Wind Project as a model for other nations and project developers. The e8 companies agreed to move forward with three more renewable energy projects in developing nations involving hydro and solar power. OUR WORK AT HOME gy future, recognizing the need for a diversity of fuels and for public policies to support technology, reduce emissions and promote energy efficiency. We were disappointed with the U.S. Department of Energy’s (DOE) decision to end its funding for the FutureGen project – the first near-zero emissions coal power plant. We continue to support this project, and will also support additional funding of carbon capture and storage projects. The DOE has restructured FutureGen funding toward advancement of carbon capture and storage (CCS) technology. DOE has issued a Request for Information (RFI) on this new proposal. We have responded and have identified several carbon capture and storage initiatives that AEP has undertaken. We look forward to working with the DOE and are willing to take action on both FutureGen and CCS projects. n Useful web links: www.chicagoclimateexchange.com www.awea.org • www.e8.org • www.ipcc.ch AEP is actively engaged in the national discussion to shape climate change legislation. The Chicago Climate Exchange provides a good model for a federal cap-and-trade program. We have joined with others to support policies that foster advanced coal technologies, such as carbon capture and storage, at both the federal and state levels. Our actions on this front include participating in the U.S. Environmental Protection Agency’s Advanced Coal Technology Work Group, which focuses on identifying barriers to and incentives that promote the rapid development and deployment of coal technologies. AEP’s chief executive officer chairs the Business Roundtable’s Energy Task Force, which has released a comprehensive vision and action plan for America’s ener- Challenges, Goals, Progress { Climate Change } Challenge Reduce or offset approximately 46 million metric tons of carbon dioxide equivalent emissions between 2003 and 2010, in spite of uncertainty how these voluntary reductions will be treated under federal climate legislation. Goal Meet our CCX commitment through 2010 through a broad portfolio of actions: • Power plant efficiency improvements. • Renewable generation. • Off-system GHG reduction projects, including forestry. • Direct purchase of emission credits through CCX. Progress Through 2007, reduced or offset CO2 emissions by approximately 43 million metric tons through power plant efficiencies. • Completed purchase agreement for 4.6 million carbon credits between 2010-2017 from methane capture from livestock. • Did not meet forestry goal due to competing interests for land that made it inefficient and too costly. • Signed three long-term power agreements for 275 MW wind; 75 MW online January 2008 with remainder scheduled to be online December 2008. • Mountaineer chilled ammonia carbon capture and storage (CCS) project expected to begin operation in 2009. • Commercial operation of CCS at a power plant likely to begin in 2012. This project will reduce emissions by 1.5 million metric tons per year. • Arkansas and Louisiana regulators gave conditional approval to USC plant; Texas approval pending. Oklahoma regulators rejected second USC plant. • Proposed IGCC plant in West Virginia approved With no further actions, AEP’s emissions will increase by approximately 10 million to 15 million metric tons between 2010 and 2020, as new generating plants come online. Implement our post-2010 strategy to reduce carbon dioxide equivalent emissions by approximately 5 million metric tons per year: • Bring new carbon capture and storage technology to commercial operation. • Invest in other advanced coal technologies, including IGCC and USC. • Increase renewable energy. • Invest in a range of offsets, including methane capture and forestry. • Implement EE/DSM programs to reduce consumption. http://www.chicagoclimateexchange.com http://www.awea.org http://www.e8.org http://www.ipcc.ch

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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