For more than 100 years, AEP has produced low-cost electricity by burning coal – a plentiful, domestic and cost-effective source of energy. Coal-fired electricity has played a vital role in expanding the American economy, creating well-paying jobs and assuring the safety, health and well-being of our customers. Nearly half of the nation’s daily electricity comes from coal. We firmly believe that coal will continue to be a significant component of America’s energy mix for the foreseeable future.

At the same time, we recognize that the carbon dioxide (CO₂) emissions created through the combustion of fossil fuels, including coal, are a matter of concern. The AEP system includes the largest portfolio of coal-based generation in the United States, so we have a responsibility to lead our industry in proactively addressing this issue. We are doing so through our investments in clean-coal technology and carbon offsets and in our vocal support for responsible federal legislation, including cap-and-trade policies.

We are leading in terms of our measurable, voluntary efforts to reduce our carbon emissions and use more renewable fuels, and through our efforts to modernize the electric grid, put more control of energy use in consumers’ hands, and increase energy efficiency. And we are leading in the international arena as well, working with the World Business Council for Sustainable Development and International Emissions Trading Association, and by participating in the international climate treaty discussions in Copenhagen, Denmark.

We expect the makeup of our generation portfolio to change in response to several external factors, including global climate change. The number of coal-fired units we operate in the future will be determined by new or more stringent environmental regulations; greater potential use of natural gas, including shale gas; the age and efficiency of some of our coal units; and the outcome of the climate change debate. The transition to other fuel sources will take time and will be expensive, but we are preparing for it.  

The actions that we take today will determine how well we meet this challenge. Working together, we can lay the groundwork that will enable us to change the way we produce and use electricity in the future.

AEP Chairman Mike Morris provides clarity around AEP's position on climate legislation.

"When the United States develops legislation or regulations that require a reduction in CO2 emissions, there is no doubt in my mind that CCS will be an integral part of compliance for the coal-fired power generation industry. While efficiency improvements to the power generation process can take us part of the way toward a lower carbon footprint, there will be no substitute for advanced CCS technology deployment. "

Q&A with Gary Spitznogle (pdf)