American Electric Power 2008 Corporate Sustainability Report

2008 Corporate Sustainability Report 45 Challenge Goal • Make efficiency improvements to power plants and retire less efficient, older plants. • Offset corporate mobile fleet and aircraft emissions. Progress but rejected in Virginia; legal challenge to Ohio IGCC sent back to PUCO. • Identified efficiency improvements to power plants to potentially reduce CO2 emissions by 1.1 million tons per year, after 2015. • 31 percent of 542 new light-duty vehicles ordered for 2008 are hybrid or flex fuel. • Reduced mobile fleet emissions, including aircraft, through carbon credits. • Developed clearer policy on EE/DSM. • For complete state-by-state information on 2007 EE/DSM activities, see www.AEP.com/cr/ energyefficiency. • Kicked off gridSMARTSM initiative that includes traditional EE/DSM program development and new technologies. Signed agreement with General Electric Co. to jointly develop and deploy equipment and technology programs to support this initiative. • Working collaboratively with Indiana Utility Consumer Counsel to implement 10,000-meter pilot in South Bend, Ind. • Participation with Leadership Group of National Action Plan for Energy Efficiency. • AEP supports Senate Bill 1766, the Low Carbon Economy Act of 2007, introduced by U.S. Sens. Jeff Bingaman (D – N.M.) and Arlen Specter (R – Pa.). • Ongoing discussions with policymakers, industry peers and environmental stakeholders. • Supported Business Roundtable Energy Task Force report calling for diversified, domesticbased energy supply mix, increased EE/DSM and more investment in new technologies, such as carbon capture and storage. • Broad support for AEP/IBEW provision for climate change legislation. • Through participation in WBCSD, AEP is one of 10 global companies to develop report outlining policies and technologies needed for sustainable electricity future. Report presented at U.N. climate negotiations in Bali, Indonesia. • Hosted e8 coal power plant conference; engineers from India and Indonesia participated. • Through e8 participation, Galapagos wind energy project completed and brought online. Wind turbines displace partial need for diesel fuel for electricity, reducing the risk of fuel spills and emissions that could harm the fragile ecosystem of the Archipelago. Certified under Kyoto Protocol Clean Development Mechanism. AEP donated and installed 12 photovoltaic panels and funded training for long-term repairs and maintenance of both the solar and wind equipment. Implement cost-effective energy efficiency and DSM programs that motivate customers to reduce energy consumption. Collaborate with stakeholders to bring cost-effective EE/DSM programs to regulators, resulting in both MW and MWh reductions, delaying demand for new generation. Obtain regulatory support for gridSMARTSM initiative, including traditional EE/DSM programs, new digital grid and smart metering technology. Reduce 1,000 MW of demand by 2012 – 15 percent to come from AEP; 85 percent to come from customer programs. Deploy 5 million smart meters by 2015, with regulatory support. Reasonable and achievable carbon controls that encourage other nations to participate, as described in AEP’s climate change policy. A market-based federal cap-and-trade program that includes all sectors and sources, rewards early action, allows GHG offsets, supports public and private funding for technology development, includes a safety valve on the market price for purchasing allowances that protects the economy, allowances allocated based on historical emissions with only a small number of allowances (less than 5 percent) auctioned or set aside for public benefit. Climate Change http://www.AEP.com/cr/energyefficiency http://www.AEP.com/cr/energyefficiency

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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