American Electric Power 2008 Corporate Sustainability Report

54 Energy Security, Reliability & Growth Customer Satisfaction (national average = 82%) 2004 2005 2006 87.4% 2007 87.2% 82.9% 83.3% 80.5% 78.0% sible epidemics, such as the avian flu, that could render a large number of employees unable to work. In addition to planning for unexpected disasters, AEP is also planning for the future leadership of the company. We have a senior management succession plan to ensure the company’s future leadership sustainability. Resiliency is increasingly being recognized as a factor in sustainability. According to the Center for Resilience at The Ohio State University, of which AEP is a founding member, “the key to sustainability of these systems is resilience, Small Commercial Customers 84.8% 84.1% 85.9% 84.1% 67.8% 70.2% • Overall Satisfaction with Utility • Residential Customers • the ability to resist disorder” when referring to the combination of economic, environmental and social performance. According to the Center, enhancing resilience not only strengthens a company’s operations and improves financial performance, it enhances many intangibles such as reputation, employee motivation and process excellence. n Useful web links: www.ge.com • www.nrc.gov www.resilience.osu.edu • www.ferc.gov Source: Market Strategies International pany’s headquarters or other key facilities, or affects employees and their families. The plan is updated continuously and practiced routinely so that key business functions can be carried on without major interruption. Backup locations have been identified for key personnel and functions. Affected personnel can be issued laptop computers to continue to work remotely. Plans have been expanded to include pos- Challenges, Goals, Progress { Energy Security, Reliability & Growth } Challenge We need timely regulatory approval to site and build new utility infrastructure to meet the growing demand for electricity and improve reliability. The challenge lies in issues such as siting, regulatory lag in recovering costs and competing interests among stakeholders. Goal Meet our obligation to serve customer demand with reliable, reasonably priced electricity while remaining in compliance and receiving regulatory support. Work with and listen to all affected constituencies. Execute a transmission plan to achieve best practices in reliability compliance, respond to ordered improvements by regional entities, serve our distribution system and other interconnections and replace aging equipment. Progress A Distribution Reliability Strategic Plan, incorporating infrastructure, customer, regulatory and financial impacts for all of AEP’s distribution system, was developed and is being incorporated into the five - year capital forecast. However, cost recovery in future filings will determine ability to implement. Completed a needs assessment study in Michigan in conjunction with International Transmission Corp and are engaged in joint venture discussions to build the proposed transmission line in the study recommendation, with approval from the Michigan Public Service Commission and Gov. Jennifer Granholm’s Energy Policy Task Force. AEP formed joint venture with Allegheny Energy to build 290 - mile PATH line with 244 miles of the line to be 765 kV. FERC approved the formula rate that will go into effect March 1, 2008, subject to refund, pending the outcome of hearing or settlement discussions. Our vision for transmission is to develop a national interstate transmission grid that would improve reliability, reduce wasted energy through lower system losses and bring more renewable and new-technology energy to market. The challenge is to work with various stakeholders to advocate Complete construction of PATH transmission project by 2012, completing first half of I -765 project as originally proposed in 2006 and advancing the goal of creating a new interstate transmission system. PATH project recognized as critical to reliability and regional congestion issues; it falls http://www.ge.com http://www.nrc.gov http://www.resilience.osu.edu http://www.ferc.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

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.