To All Of Our Stakeholders:

AEP retired approximately 6,500 megawatts (MW) of coal-fueled generating capacity as part of the company’s plan to comply with the Mercury and Air Toxics Standards rule put in place by the U.S. Environmental Protection Agency in December 2011. AEP developed formal plans to decommission that capacity in a responsible manner that will safeguard the local environment and assure the safety and security of the local community and our neighbors for years to come. Information on these plant and unit retirements is included below:

We have been engaging stakeholders on AEP’s long-term sustainability for more than a decade. This dialogue includes the efficient use of energy, our evolving business model as the grid is modernized, the reduction of our carbon footprint as we diversify our resource portfolio and the way we manage risk. Different stakeholders have different concerns but universally we are asked about our preparedness to transition to a clean energy future. This is a fair question.

We have diversified our generating portfolio to provide our customers with the clean energy solutions they are asking us for. We believe in an “all of the above” strategy, which includes investments in energy efficiency, renewables, natural gas, nuclear, hydro-electric and pumped storage and coal. While coal is a smaller proportion of our resource mix than in the past, it remains important to the reliability and resiliency of the grid.

We are also investing in our transmission and distribution systems to provide significant benefits to our customers as we rebuild and enhance an aging infrastructure; add advanced, more efficient technologies; and create a more efficient, robust and resilient system. Our proposed investment in Wind Catcher, the largest wind farm in the United States if approved, is one example that demonstrates the significant change in future generation opportunities before us, allowing us to deliver cost savings and clean energy to our customers.

Our customers want us to help them achieve their clean energy goals while providing reliable and affordable power. Our investors want us to protect their investments in our company and deliver attractive returns, and they expect us to manage climate change-related risks. Our strategy and resource planning process allows us to deliver on both counts.

These goals reflect our current plans for future resource additions and the resulting reductions in our carbon footprint. There is no question the electrification of our economy is accelerating. If policymakers can organize around a utility model that is highly digitized with new technology and analytics, we can invest in the infrastructure needed to provide universal access to clean energy to all customers.

I invite you to read this report and visit to learn more about the actions we are taking as we redefine the future of energy — with our customers — and develop innovative solutions that power communities and improve lives.


Nicholas K. Akins
Chairman, President & Chief Executive Officer
American Electric Power
February 2018