Our focus is on executing our strategy to grow and invest in our regulated businesses; deliver superior service to our customers; provide a collaborative, rewarding work environment for our employees; develop our competitive businesses; and deliver value to our shareholders. To achieve our strategic objective of 4 percent to 6 percent earnings growth, we are executing on the following goals:
- Optimize regulated utility returns: AEP’s financial objectives are to earn our allowed returns by prudently investing capital for our customers and maintaining our investment-grade credit ratings.
- Grow our transmission business: AEP Transmission’s growth strategy depends on building and cultivating a portfolio of businesses under the AEP Transmission Holding Company. For the year ending Dec. 31, 2013, AEP Transmission Holding Company projects it will contribute $67 million in earnings. Our portfolio consists of:
- AEP Transmission Company – A holding company for state-regulated transmission companies, or Transcos.
- Joint ventures – Joint ventures with other utilities are longer-term projects offering FERC formula rates and other rate mechanisms that provide a higher return on equity.
- Transource Energy – A competitive business started in 2012, Transource focuses on developing projects within and beyond the AEP service territories, with flexibility to add projects and partners as opportunities arise.
Transform our generation business: External factors continue to call for significant changes in our generating fleet. We will do this by:
- Diversifying our fuel mix.
- Complying with environmental regulations by retiring approximately 5,500 megawatts (MW) by the end of 2016 and refueling or retrofitting nearly 11,000 MW of coal-fired generation between now and 2020.
- Improving the operational performance of our generation fleet.
- Build our competitive business platform: AEP formed a new Energy Supply organization in late 2012 to oversee this business unit. Its objectives include:
- Achieving corporate separation in Ohio by Jan. 1, 2014.
- Integrating competitive generation with our retail and wholesale businesses.
- Investing capital conservatively.
- Mitigating risk and volatility through hedging activity.
- Improve the health of our organizational culture: Culture is a business imperative to successfully execute on our strategy, yet it is abstract and subjective. It’s our job to reach out to all of our employees, communicate the strategy and vision, and focus on how each business unit can contribute to AEP’s overall strategy and vision so all employees know exactly what their roles are.
AEP's Executive Team
Lana L. Hillebrand, Senior Vice President and Chief Administrative Officer; David M. Feinberg, Executive Vice President, General Counsel and Secretary; Nicholas K. Akins, President and Chief Executive Officer; Brian X. Tierney, Executive Vice President and Chief Financial Officer; Dennis E. Welch, Executive Vice President and Chief External Officer; Robert P. Powers, Executive Vice President and Chief Operating Officer; and Lisa M. Barton, Executive Vice President, AEP Transmission.