Capital Investment Strategy
Our ability to achieve sustainable earnings improvement will be influenced significantly by our capital investment strategy. When we put capital to work, we are improving operational efficiencies, customer reliability and shareholder value.
We are aligning our resources to support our primary pillars of strategic focus: the development of our physical and technological infrastructure, improving the customer experience and improving the employee experience.
Our sights are on the future. We know tomorrow’s utility must be adaptable, agile and ready to embrace new opportunities as they arise. That is why we are putting our capital where it will provide the maximum benefit to customers and shareholders. That means if one business unit needs capital to take advantage of a growth opportunity and another business unit has uncommitted capital available, we transfer those funds where they can do the most good. In 2013, we were able to redeploy about $150 million, primarily from our generation business, to invest largely in transmission projects. Rather than looking at capital investments at each business unit independently, we examine our needs across the system as a whole and make adjustments as needed.
We are a regulated electric utility, which means the investments we make on infrastructure are generally supported by regulators and earn regulated returns. AEP’s infrastructure investments must balance the needs of our customers, the company and our shareholders. Our Investment Review Committee works with our operating companies to understand their capital needs and determine where resources should be deployed for optimum impact for customers and shareholders.