Partner Profile

American Electric Power
Location	Columbus, OH
Goal	American Electric Power pledges to reduce total U.S. GHG emissions by 6 percent from 2001 to 2010. American Electric Power achieved its initial goal by reducing total U.S. GHG emissions by 4 percent from 2001 to 2006.
Environmental Web Site
Company Description American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio. AEP is a founding member of the Chicago Climate Exchange (CCX), the Business Roundtable’s Climate RESOLVE initiative, and the Pew Center on Global Climate Change Business Environment Leadership Council (BELC). “Climate change is a significant issue for society, and certainly for AEP, as we are one of the largest consumers of coal in the United States. We feel a growing imperative to reduce greenhouse gas emissions and to support a reasonable approach to carbon controls. It is critical that such controls are consistent with our obligation to provide reliable, reasonably priced electricity to support the economic well-being of our service territory and our country. Climate change is a global issue and we will continue to work with our international partners, including the Asia-Pacific Partnership, to encourage the participation of developing countries such as China and India. The United States is in a position to lead change and bring other nations into the process, and we will work with our representatives to do so.” - Michael G. Morris, Chairman, President and Chief Executive Officer
Reasons for Joining Climate Leaders AEP collaborates with many different types of organizations to advance its environmental activities and learn about new and advanced options for protecting and preserving our natural resources. Partnerships range from supporting academic research and leading policy advocacy to forging multilateral coalitions and committing to innovative business relationships. These relationships support the company’s belief that collaboration is key to successful initiatives to protect the environment.
GHG Reductions Before Joining Climate Leaders The Climate Leaders program succeeds AEP’s participation in the US Department of Energy (DOE) Climate Challenge program, through which the company reported more than 22 million tons of CO2 saved between 1991-2002 under the DOE’s 1605(b) program.
Approach to GHG Management In 2005, AEP announced it would extend its initial CCX commitment to achieve further reductions or offsets in emissions during 2007-2010, reaching an annual target of 6 percent by 2010. AEP has made a similar commitment to Climate Leaders, after achieving its initial Climate Leaders goal of a 4 percent reduction from 2001 to 2006. The new commitment is a cumulative reduction of 46 million metric tons of CO2 equivalent from 2001 to 2010, a 6 percent total reduction. AEP has committed to reaching this goal through internal reductions and investment in offsets. For example, these actions include: • Improving the efficiency of existing power plants to reduce CO2 emissions per net kilowatt hour; • Adding wind generation to itssystem, focused on AEP’s western states, to displace the company’s use of fossil fuel generation; • Improving the availability and increasing generation from the Donald C. Cook nuclear power plant, which achieved record generation levels during 2004 and 2005; • Retiring older and less efficient gas steam units in AEP’s western region and two coal units in its eastern region; • Substantially reducing the leakage rate of sulfur hexafluoride (SF6), a potent GHG, from transformers by approximately 90 percent; and • Reforesting lands in the United States and internationally.
Progress Towards Goal Completion Today, AEP’s adjusted carbon emissions baseline is 150 million metric tons. The total cumulative CO2 equivalent reduction requirement to meet the CCX and Climate Leaders commitment is approximately 46 million metric tons by 2010. Through 2006 AEP has achieved approximately 39 million metric tons in reductions, so the company is well on its way to reaching its target.

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