Leadership & Strategy

Lobbying And Political Activity

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We actively participate in the political process to advance our long-term business interests and the interests of our customers, employees, shareholders and other stakeholders. We also lobby and work for what we believe is in the best interests of our communities and the nation. We maintain five political action committees (PACs) – one for federal candidates and separate state PACs in Michigan, Ohio, Texas and Virginia. Approximately 30 percent of the employees eligible to participate in one of our PACs do so. AEP’s federal PAC, the AEP Committee for Responsible Government, contributed more than $740,000 to candidates for public office in 2012 and received about $652,000 from employees. The difference was made up by surplus funds from previous years. Pursuant to federal and state laws, AEP is permitted to pay expenses of operating its PACs. We also have a process whereby political contributions are reviewed annually by AEP’s board of directors.

In 2012, we spent about $7.5 million on internal and external lobbying activities at the state and federal level. This includes dues to trade or national associations for which a portion is used for lobbying. We maintain an office in Washington, D.C., to address issues involving federal legislation and regulation. Each of our operating companies has lobbyists who work in their respective state capitals.

We belong to or participate in several state, local and national organizations, including the Edison Electric Institute, the Business Roundtable and the National Association of Manufacturers (NAM). We do so for a variety of reasons, including staying current on issues, learning best business practices from our peers, and strengthening our relationships with our customers, many of whom are also members. We disclose our political contributions as well as the portion of membership dues to various organizations that is used for lobbying purposes on an annual basis. For more information see our lobbying policy and our disclosure for 2013.

We believe that, as a general rule, it is more beneficial to AEP to remain involved, even if we occasionally disagree, than to withdraw. We believe that we can be far more effective in shaping the policies of the organizations from within, rather than sitting on the sideline.

From time to time, many, if not most, of the organizations to which we belong reach conclusions or take positions with which we disagree. If we feel strongly enough, we voice our disagreement and work to change the organization’s position. Sometimes our views prevail, sometimes they do not. Many times we are able to reach some sort of compromise.

We are firm believers in transparency and participating actively in public debate. That belief is based on our deeply held cultural value of collaboration, which we practice both internally and externally. We believe that open, candid discussion and a good-faith attempt to reach common ground is the best way to do business.

The New Turk Power Plant

The 600-MW John W. Turk, Jr., Power Plant in southwestern Arkansas is among the nation’s cleanest, most efficient pulverized coal plants.

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