To All Of Our Stakeholders:
The energy industry is in an era of transformation, moving rapidly toward a cleaner energy economy. American Electric Power is at the forefront of this transition to modernize the power grid, diversify our resources and deliver cost-effective, reliable electricity to customers and value to our shareholders. Our business strategy and resource planning have created a path forward that will result in the clean energy our customers want and, consequently, lower carbon dioxide emissions.
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 AEPsustainability.com 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