To be sustainable we must address the fundamental issues that make equity investors want to buy our stock and the financial community willing to lend us money. We will retain our access to credit markets by maintaining our investment grade credit ratings.  We will maintain our equity strength by rewarding our shareholders with steady growth and a stable dividend. These are the hallmarks of a financially strong electric utility.

We expect earnings to grow at a rate of 4 percent to 6 percent over the 2012 to 2014 timeframe. To achieve this, we will invest capital in critically needed infrastructure where we can efficiently convert that investment into investor earnings and customer value.  This is fundamental to our ability to grow and prosper while meeting our underlying business, financial, environmental and social obligations.

At the same time, our business is facing major changes that will affect our customers, shareholders, communities and other stakeholders. Several factors are driving our transformation including investment in infrastructure, new market fundamentals, and proposed new environmental regulations.  

We are sensitive to the fact that customer rates have increased during the last few years at a time when customers have struggled with a challenging economy. Consequently, regulators in our states will only support initiatives that are mandated by laws or regulations. We are addressing these concerns by spending prudently to comply with environmental laws and to fulfill our directive to provide reliable, reasonably priced electricity.

Our sustainability is directly linked to our financial and nonfinancial success.  We cannot meet our sustainability commitments unless we are financially strong. Conversely, our performance in areas such as worker safety and health, labor relations, environmental performance and stakeholder engagement are integral to our ability to be financially strong and successful.  We believe that providing this context for investors and lenders helps them make more informed decisions and drives continuous improvement at American Electric Power.

I invite you to learn more about AEP and why we believe it is a solid long-term investment.