American Electric Power 2008 Corporate Sustainability Report

50 Energy Security, Reliability & Growth agreement with regulators. AEP’s goal is to have all 5 million smart meters in place by 2015, if regulators approve. TRANSMISSION U.S. Department of Energy (DOE), the National Renewable Energy Laboratory, and the American Wind Energy Association (AWEA), AEP determined that a 19,000-mile 765 kV transmission system that overlays the existing network could help achieve AWEA’s long-term goal of securing up to 20 percent of the nation’s power from wind. The system, as proposed, would cost approximately $60 billion to build (in 2007 dollars), which represents onethird the cost of comparable capacity at 345 kV. It also uses less than one-quarter of the land needed for a right-of-way of an equivalent 345 kV system. In addition to the benefits The nation’s existing transmission system is aging and insufficient to meet long-term energy needs. It was built to serve utility load and to enhance reliability among interconnected utilities – not to facilitate the transfer of energy in a competitive marketplace. Nor was it designed to transmit renewable resources, such as wind and solar power, which may be generated far from where it is needed. As demands on our transmission system evolve, so too must our expectations and, ultimately, how the system is designed. Our existing 765 kV system provides a good foundation for expanding the nation’s extra-high voltage (EHV) transmission network to meet near- and longterm energy needs. We support development of a national interstate EHV transmission system – the electrical equivalent of our interstate highway system. Such a system would jump-start the development of a robust, modern electric grid to reinforce the strength of the existing system and allow us to deliver power where it’s needed, when it’s needed. We believe the best way to develop this system is through federal oversight and to encourage its development through incentives. Such an interstate transmission system is essential to ensuring a sustainable future for the nation. We are committed to this vision and will work with others to advance it. A modern EHV system would eliminate bottlenecks, increase energy efficiency and congestion, and enable more renewable energy to be brought to market, foster greater competition and improve the system’s reliability. For example, in a study completed in 2007 in conjunction with the We need a true nationwide transmission version of our interstate highway system; a grid of extra-high voltage backbone transmission lines reaching out to remote resources and overlaying, reinforcing, and tying together the existing grid in each interconnection to an extent never before seen. “ of bringing more renewable power to market, such a 765 kV network would free capacity on lower voltage transmission lines (such as existing 500 kV, 345 kV and 230 kV circuits). This is particularly important because this additional capacity provides more operational and maintenance flexibility and significantly improves reliability and efficiency. ” Suedeen Kelly, FERC Commissioner, July 23, 2007 Many of our stakeholders generally support new transmission but are cautious in their support because they want certainty that AEP will consider factors such as biodiversity when siting and building new lines. Some customers have told us the growth of AEP’s transmission system is tied to the growth of their companies because they can only expand and grow where they have access to the electricity needed for their businesses. Our vision for a 550-mile transmission line from West Virginia into New Jersey, announced in January 2006, is becoming a reality. The first step is a joint venture with Allegheny Energy to build the 290-mile Potomac-Appalachian Transmission Highline (PATH). One section of the route – 244 miles – will consist of 765 kV trans-

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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