About Our Business

Climate Change

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AEP faces many risks to its long-term sustainability as a company committed to providing safe, reliable and affordable electricity to its customers. We recognize the risk and likelihood that we will face climate regulations as well as potential climate legislation or other greenhouse gas (GHG) requirements. As a result, we continue taking actions to reduce our carbon footprint while increasing our fuel diversity over time. We also continue to be engaged with many organizations and stakeholders on this issue.

Our Position

Our climate change position is unchanged: there is enough scientific evidence and sufficient public policy discussion to warrant consideration of the potential impacts in our long-range planning processes. Consequently, we have taken measurable, voluntary actions to reduce or offset carbon emissions from our operations since the early 1990s. 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 of an additional 10 percent below 2010 levels. We are proud of the progress we’ve made to reduce our CO2 emissions during the last decade, and the transformation of our generation business will further reduce emissions in the future. In 2013, AEP’s CO2 emissions were approximately 115 million metric tons* compared with 122 million metric tons* in 2012. This represents a 21 percent reduction compared with our 2005 CO2 emissions of approximately 145 million metric tons. We are a much less carbon-intensive company than a decade ago and that trend will continue.

We also believe climate change is a global issue. We believe that moving too quickly with climate change initiatives could impair already struggling world economies even further. Any plan to reduce CO2 emissions must be rational in terms of timing, scope and reduction targets to accommodate continued growth of world economies, allow sufficient time to develop the necessary technologies, mitigate costs to customers and achieve the environmental benefits desired.

*AEP owned generation excluding Clifty Creek and Kyger Creek.

Our Strategy for Growth

AEP's strategy for growth is to invest capital in our regulated companies. Our investments in transmission and distribution improve reliability for customers and operational efficiencies of the grid, and provide a pathway to market for renewable energy.

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