Statement of AEP’s Board of Directors

The AEP Board of Directors has responsibility for overseeing the company’s sustainability initiatives. 2017 marks the 11th year that AEP has provided a comprehensive account of its performance, integrating financial with sustainability reporting. The Committee on Directors and Corporate Governance, which oversees this report, fully supports this approach. Stakeholders have expressed approval and appreciation for AEP’s leadership with this integrated approach to corporate reporting.

Throughout the year, the Committee and company management reviewed the company’s sustainability objectives, challenges, targets and progress. The Committee reviewed and discussed the final text of this report before its adoption of a formal resolution approving the report. The AEP Board of Directors receives frequent reports from management about the company’s sustainability initiatives and financial reporting, policy matters, compliance and economic performance. These issues are the subject of active discussion at Board meetings and Board committee meetings.

The 2017 Corporate Accountability Report reflects robust disclosure about AEP’s 2016 performance as well as the company’s strategy and vision for the future. AEP’s changing business model, its transition to a clean energy future and its plan for future growth are discussed to provide clarity about the transformation of the company and the industry. AEP management has ongoing discussions with multiple stakeholder groups, including investors, and the disclosure provided in this report reflects that engagement. As the Lead Director, I also participate in AEP’s annual proactive shareholder outreach program. AEP is committed to being transparent, candid and open about its business, and this report is a reflection of that commitment.

The Committee believes this document is a reasonable and clear presentation of the company’s plans and of its environmental, social and financial performance. The Board has emphasized that management will continue to be evaluated according to its success in executing the company’s strategic plan to meet stakeholders’ and the Board’s expectations, including being agile in responding to changing circumstances while respecting the commitments in this report.

Thomas E. Hoaglin
Lead Director of the AEP Board of Directors
May 2017