American Electric Power

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.

AEP's priorities are to upgrade its energy delivery network and invest in extra-high voltage transmission to strengthen the U.S. grid, to build or purchase additional generation resources to meet customer demand, and to continue to improve the environmental performance of its existing facilities.

AEP will invest approximately $5.1 billion between 2004 and 2010 to reduce emissions of sulfur dioxide, nitrogen oxides, particulates and mercury. Additionally, AEP is seeking regulatory approval to build two 629-megawatt Integrated Gasification Combined Cycle clean-coal power plants which have improved efficiency and fewer emissions than conventional pulverized-coal plants.

To address greenhouse gas emissions, AEP will validate carbon capture technology on existing coal-fueled plants in West Virginia and Oklahoma. The company also is increasing its renewable generation portfolio and is supporting the first large-scale methane offset program that will capture methane from 200 U.S. livestock farms.

In 2007, AEP produced and distributed its first-ever Corporate Responsibility report. The report, available at www.AEP.com, provides an overview of the Company's efforts to engage stakeholders and to do our business in a way that respects people and the environment.

AEP's efforts are being recognized. In 2006, AEP received the top score for the electric utility industry in a Ceres Investor coalition report that ranked 100 global companies on their climate change strategies. In 2007, AEP Chairman, President and Chief Executive Officer Michael G. Morris accepted an invitation to join the World Business Council for Sustainable Development, a global association dealing exclusively with business and sustainable development. AEP has also joined the Clinton Global Initiative.

AEP is a Fortune 500 corporation, based on 2006 revenues of the nation's largest corporations. AEP also was recognized again in 2007 by Working Mother Media as one of the "100 Best Companies for Working Mothers"—the third such honor for AEP in the last six years. The National Association for Female Executives (NAFE) named AEP one of the top 30 companies for women executives.

Michael G. Morris Chairman, President and Chief Executive Officer, American Electric Power