Opportunities & Risk

Climate Change

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Climate change may be one of the most significant long-term sustainability risks for AEP. We have continued to take a leadership role on the issue; however, national public policymakers and regulators in our 11 states have conflicting views about global warming and the need for greenhouse gas (GHG) regulations in the United States.

Total AEP System - Annual CO2 Emissions

AEP has proactively supported a number of proposed climate bills in Congress and made significant investments in clean-coal technologies. We voluntarily reduced or offset carbon dioxide (CO2) emissions through the Chicago Climate Exchange between 2003 and 2010 and set a new 2020 goal for emission reductions. We are proud of the progress we’ve made to reduce our carbon dioxide emissions during the last decade, and the transformation of our generation business will further reduce those emissions in the future.

We are currently focused on taking practical, short-term actions to reduce our carbon footprint, such as improving energy efficiency, investing in the development of cost-effective and less carbon-intensive technologies and evaluating our assets – power plants, office buildings, and mobile fleet – across a range of reasonable scenarios. Longer term, the transformation of our generation business is expected to reduce our reliance on coal from 65 percent of our generating capacity in 2012 to about 46 percent in 2020. This balancing of our fuel resources will also keep us on the path to continued carbon dioxide reductions, helping us achieve our 2020 goal to reduce GHG emissions by 10 percent from 2010 levels.

We are also actively engaged in many different public policy discussions at the state, federal and international levels to assure that any new proposed requirements are feasible, economical and don’t put our customers at a competitive disadvantage.

AEP’s Transmission Strategy

AEP’s transmission strategy is supporting economic development and job growth, while bringing us closer to our supply line.

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