While reining in spending and protecting the company’s financial health has been essential, it also has been painful at times.

On the one hand, the work force reductions have led to heavier workloads for many employees. This jeopardizes the work/life balance we strive to achieve. Some work groups were reduced by half. Employees and their leaders are working together to identify process improvements and efficiencies to get the work done.

At the same time, the restructuring has given employees opportunities to be creative and take on new assignments, progress within their current jobs or move into leadership roles. There are approximately 300 first-time leaders across the company, many of whom were front-line workers until recently. We’ve launched a leadership training program to help this group develop leadership skills as quickly as possible.

Fortunately, AEP has placed a great deal of effort during the past few years into developing succession plans and preparing targeted groups of employees to move into leadership roles or advance in the leader ranks. In particular, this has been a focus in the EP&FS organization and at Cook Nuclear Plant. Our Charleston, W.Va., and Shreveport, La., regions also participated in a pilot program to develop emerging front-line leaders in 2009 and 2010.

Groups throughout the company are exploring how to adapt to a smaller work force and become more efficient – by working differently, eliminating work or making greater use of technology. Quickly “recasting” work is especially challenging where high numbers of time-sensitive transactions involving customers or employees are required, as in our Customer Solutions Centers and the Human Resources Service Center. While the reorganization has led to some short-term negative effects, we have taken actions to remedy these problems.

The work force reductions in 2010 lowered the median employee age from 49 to 47 and the percentage of Baby Boomers declined from 48 percent in 2009 to 40 percent in 2010. Nonetheless, like many other utilities, AEP continues to face an aging work force. We take this into account as part of our ongoing work force planning efforts. However, projecting ahead more than a few years involves certain assumptions that may or may not materialize.