AEP produces and delivers an energy resource that is essential to society. Our success is measured by our ability to meet customers’ energy needs while making a profit, doing it responsibly, with respect for the environment, in compliance with all laws and regulations, and by engaging with those who have a stake in our business. We believe that our environmental performance overall is excellent, but we know there is room for improvement.

Our $5.4 billion program to retrofit many of our coal-fired power plants with environmental controls is already having significant positive impacts on our performance and the environment. Today, our sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions are at their lowest levels in two decades. These reductions reflect our compliance with the Clean Air Act (CAA) Title IV regulations, the NOx State Implementation Plan Call and the Clean Air Interstate Rule.

Environmental regulation is in flux: the U.S. Environmental Protection Agency (EPA) is reviewing or rewriting several key regulations pertaining to air emissions, water quality and waste storage and disposal. Many potential changes are aimed directly at coal-fired power plants and could adversely affect our net income, financial position and the cost of electricity.

If, for example, emission limits become more restrictive, or if additional substances are regulated, we would face significant additional costs. We have obtained cost recovery for our environmental program so far, and we expect we would continue to be allowed to do so if new government mandates are imposed.

“Often one of the most challenging parts of my job is trying to explain to employees why we do what we do in regard to various environmental rules and regulations.”

Q&A with Ginger MacKnight (pdf)