About Our Business

Resource Planning and Carbon

Our stakeholders often ask us if we factor the cost of carbon into our resource planning. The answer is yes – we have been doing this for years.

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The potential for carbon regulation has been part of our integrated resource planning process for many years and will evolve as more definitive requirements emerge from the regulatory processes currently under consideration. AEP’s planning process considers all available resource and market options to achieve the least-cost plan. This includes future legislative or regulatory carbon actions.

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

Internationally, we are engaged in two organizations focusing on climate and energy sustainability issues. The first is the International Emissions Trading Association (IETA). The organization, whose members include more than 140 international companies, serves as a leading business advocate for a cost-effective and workable framework for greenhouse gas emission reductions using emissions trading, offsets and other market mechanisms. In 2014, AEP serves as the chair of IETA.

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AEP is a member of the Global Sustainable Electricity Partnership, a CEO-led group of 14 of the world’s largest electricity companies in 12 countries. The partnership develops joint energy and environmental policy frameworks in domestic and international markets and demonstrates how they enable electricity to be generated and delivered through the development of small generating projects and technology, policy and financing seminars with local stakeholders. AEP benefits from exchanging experiences among the companies on issues such as technology innovation, grid reliability, electricity markets and project financing, as well as environmental and clean energy development policy for application in the United States.

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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