Environmental Performance & Compliance
Compliance is the foundation of our environmental efforts. We are required to comply with hundreds of state and federal regulations at all of our locations, ranging from coal pile storm water runoff to hazardous chemical handling and air emissions from our stacks. Environmental agency inspectors often make unannounced visits to our sites to monitor our compliance with a wide range of complex regulatory requirements, permit limits and recordkeeping and reporting obligations. In 2012, there were approximately 180 inspections by regulatory agencies in which physical structures, procedures and recordkeeping practices were examined.
Our overall compliance record is very good. We strive for zero formal environmental enforcement actions, but received two in 2012. Both have been addressed.
One enforcement action involved demolition of a coal conveyor without an approved storm water pollution prevention permit at a property managed by AEP Kentucky Coal. A $3,390 penalty was assessed and corrective actions were implemented. A second event stemmed from surface drainage and sediment control issues identified during a Louisiana agency inspection at Dolet Hills Lignite Company. A fine of $3,500 was proposed. The issues have been addressed, and discussions with the agency toward final resolution continue.
We maintain a voluntary internal Environmental Performance Index for our generation business, for which we set annual compliance targets that are tied to compensation. We recorded five incidents in 2012, our best performance since we began tracking it in 2003.