2016 Corporate Accountability Report
power everything we do
TOTAL
SHAREHOLDER
RETURN
EARNINGS PER SHARE
2015 debt-to-
capitalization ratio
53.2%
$3.69
Our operating earnings
per share in 2015 came to
Debt-to-capitalization
is found by dividing the
total of your short and
long term debt by your
total debt plus your
shareholder equity
Our cash dividends
per common share
$2.15
$16.5 BILLION
IN GAAP REVENUE
Our people contributed to AEP's
strong financial performance
BOTTOM LINE
Our People Impact Our
AEP is committed to achieving long-term sustained growth by bringing our
investments closer to what customers want and value, while building an organizational
culture of continuous improvement, innovation and engagement. Our strong financial
performance in 2015 demonstrates we are delivering on that commitment.
OUR PEOPLE
The foundation of AEP's success is
the dedicated men and women of AEP
In 2015, we reduced our water withdrawal
by 18% compared to 2014
Since 2000, we have reduced
our CO2 emissions by
39%
Since 1990, AEP has reduced its SO2 emissions by 88% and NOX emissions by 87%
of coal combustion residual products
3 MILLION TONS
We beneficially reused more than
We recycled
of hazardous waste
767,321 lbs
of mixed office waste
recycled
Between 2000-2016, AEP will have invested an estimated
$8.5 billion in environmental controls on our power plants
7,479 lbs
ENVIRONMENTAL FOOTPRINT
AEP is Reducing Its

AEP is committed to operational excellence and environmental stewardship to reduce our impacts. Already, AEP is a less carbon-intensive company than a decade ago and as we retire additional coal units and increase our use of clean energy, our carbon footprint will continue to shrink.

of ideas submitted by employees
to improve efficiency and processes
and reduce waste
1.6 MILLION
smart meters installed across our system
AEP will invest approximately
$5 BILLION
annually from 2016-2018 in grid modernization
Developed by AEP engineers, BOLD
is a new, next-generation transmission line
design to move power over long distances.
The first BOLD line is under construction
in Indiana.
THOUSANDS

Asset Health Center
Reduces equipment failures and improves reliability
2015 marked the launch of a
14.7 MW
clean energy solar pilot
project in Indiana

We are committed to creating a smarter, more secure grid; developing new products and solutions that enhance the customer experience; and leveraging the ingenuity of our employees to reinvent what the next-generation energy company looks like and how we operate.

TECHNOLOGY
Investing in
In 2015,
Distribution Miles
224,000
6,300 MW
new wind by 2034
AEP has approximately
5.8 Million
REGULATED AND COMPETITIVE
CUSTOMERS IN THE U.S.
We also provided
$65.8 MILLION
in energy assistance to help
customers pay their bills

Invested in
+ 100 energy efficiency programs
2008-2015
$348 MILLION
32,000 MW
total generating
capacity
SAFE
RELIABLE
POWER
Our core mission is to provide
+ 19.6 million
Online transactions
conducted with customers
23 million
customer calls to AEP's
Customer Operations Centers
1,069,073
customers signed
up for paperless billing
173,439
residential customers
signed up to receive
mobile outage alerts
ALL AEP Employees
must complete cyber & physical
security training to protect the grid

3,400 MW
new solar and
Tranmission Miles
99.96%
average percentage of time in a
year that customers have
uninterrupted electric service


The customer experience encompasses every touch point we have with our customers. Whether through customer service or our efforts to deliver clean, affordable and reliable electricity - we are dedicated to improving the overall customer experience.

OUR CUSTOMERS
Our People are Committed to
40,000
invested in vegetation
management
WAGES
$2.3 billion
paid in wages
SAFETY
DIVERSITY
CULTURE
TRAINING
To AEP, Zero Harm means we care for each other; we care enough to always choose the safest way to do a job; and,
we take responsibility and accountability for speaking up to prevent harm. We believe every event is preventable and we
will not put productivity ahead of safety.

to support 1,800
community organizations
Others
2.7%
Environment
3.3%
Youth
5.3%
10.8%
Economic
Development
5.3%
Arts &
Culture
9.5%
Safety &
Health
10.8%
Hunger &
Housing
Community
37.7%

20.2%
Education
$11 million
SM
to Credits Count a five-year dual enrollment program that helps high
school students pursue college level
STEM education and careers

Since the program launched
in 2013 the AEP Foundation
has
committed more than
$13.5 Million
In 2015, AEP and the AEP Foundation
donated more than
STRONG COMMUNITIES
AEP is Building

AEP and our employees play an important role in the economic viability of our communities. Whether through corporate philanthropy or volunteer efforts, we actively engage and support local communities to help enhance the quality of life, advance education and enrich our communities.

22,500 Jobs
Economic and Business Development
worked on 170 business attraction and
retention projects expected to create
To bring international investment to our
service territory, AEP launched a foreign
direct investment strategy targeting
Canada, China, Germany, India and Japan.
$227
in federal taxes
and
MILLION
in state taxes
$345
MILLION
The taxes we pay support local education, public safety and economic development,
investment from Amazon
in 3 new data centers
in Ohio.

$1.1 billion
in local taxes to
AEP communities
MILLION
$640
We paid
Sustainable
Procurement
$3 billion
of AEP's total corporate spend
with local suppliers
49%
spent on locally-based suppliers
was spent on goods and services from small businesses and
diverse suppliers
$583 million
BRINGING
TO OHIO
Two Amazon
distribution centers
2,000 JOBS
AEP Supports
LOCAL ECONOMIES

AEP is dedicated to building stronger communities by providing economic development opportunities to attract jobs, support capital investment and grow local economies. This adds value to AEP and the local communities where our employees live and work.

- Nicholas K. Akins, chairman, president and chief executive officer, AEP


innovation, agility and continuous improvement. Our employees will also be the enablers that continue to help us move in exciting and challenging directions to improve the customer experience, deploy new technologies, and leverage our industry's expertise as we become the next-generation energy company.
T
hroughout 2015, we reached several important milestones, positioning our businesses for near-term success and long-term sustainable growth. Our goal was simple: to establish a firm foundation to advance our company financially, operationally, culturally and strategically. Our employees helped us reach our goal with a disciplined and execution-oriented approach supported by a culture of innovation
AEP's 2015 Business Performance Summary
17,405
TOTAL AEP EMPLOYEES

A strong culture fosters engaged employees and creates the foundation for long-term success. Building on our commitment to customers, safety, operational excellence and innovation.


Power Our Success
OUR PEOPLE
— Nicholas K. Akins, chairman, president and chief executive officer, AEP
A strong culture fosters engaged employees and creates the foundation for long-term success. Building on our commitment to customers, safety, operational excellence and innovation.
innovation, agility and continuous improvement. Our employees will also be the enablers that continue to help us move in exciting and challenging directions to improve the customer experience, deploy new technologies, and leverage our industry's expertise as we become the next-generation energy company.
Power Our Success
AEP's 2015 Business Performance Summary
T
hroughout 2015, we reached several important milestones, positioning our businesses for near-term success and long-term sustainable growth. Our goal was simple: to establish a firm foundation to advance our company financially, operationally, culturally and strategically. Our employees helped us reach our goal with a disciplined and execution-oriented approach supported by a culture of innovation
OUR PEOPLE
17,405
TOTAL AEP EMPLOYEES
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Distribution Miles
ALL AEP Employees must complete cyber & physical security training to protect the grid
$65.8 MILLION in energy assistance to help customers pay their bills
SAFE
+ 19.6 million Online transactions conducted with customers
Our People are Committed to
invested in vegetation management
We also provided
Our core mission is to provide
OUR CUSTOMERS
RELIABLE POWER
In 2015,
32,000 MW total generating capacity
6,300 MW new wind by 2034
$348 MILLION
5.8 Million
The customer experience encompasses every touch point we have with our customers. Whether through customer service or our efforts to deliver clean, affordable and reliable electricity - we are dedicated to improving the overall customer experience.
AEP has approximately
99.96% average percentage of time in a year that customers have uninterrupted electric service
REGULATED AND COMPETITIVE CUSTOMERS IN THE U.S.
Tranmission Miles
3,400 MW new solar and
173,439 residential customers signed up to receive mobile outage alerts
40,000
Invested in + 100 energy efficiency programs 2008-2015
1,069,073 customers signed up for paperless billing
224,000
23 million customer calls to AEP's Customer Operations Centers
clean energy solar pilot project in Indiana
Investing in
Reduces equipment failures and improves reliability
14.7 MW
We are committed to creating a smarter, more secure grid; developing new products and solutions that enhance the customer experience; and leveraging the ingenuity of our employees to reinvent what the next-generation energy company looks like and how we operate.
TECHNOLOGY
Asset Health Center
of ideas submitted by employees to improve efficiency and processes and reduce waste
AEP will invest approximately $5 BILLION annually from 2016-2018 in grid modernization
Developed by AEP engineers, BOLD is a new, next-generation transmission line design to move power over long distances. The first BOLD line is under construction in Indiana.
2015 marked the launch of a
THOUSANDS
1.6 MILLION smart meters installed across our system
of mixed office waste recycled
We beneficially reused more than
Since 1990, AEP has reduced its SO2 emissions by 88% and NOX emissions by 87%
of hazardous waste
Between 2000-2016, AEP will have invested an estimated $8.5 billion in environmental controls on our power plants
of coal combustion residual products
3 MILLION TONS
7,479 lbs
In 2015, we reduced our water withdrawal by 18% compared to 2014
AEP is Reducing Its
767,321 lbs
ENVIRONMENTAL FOOTPRINT
We recycled
Since 2000, we have reduced our CO2 emissions by
39%
AEP is committed to operational excellence and environmental stewardship to reduce our impacts. Already, AEP is a less carbon-intensive company than a decade ago and as we retire additional coal units and increase our use of clean energy, our carbon footprint will continue to shrink.
TOTAL SHAREHOLDER RETURN
$16.5 BILLION
Debt-to-capitalization is found by dividing the total of your short and long term debt by your total debt plus your shareholder equity
$2.15
Our People Impact Our
Our operating earnings per share in 2015 came to
BOTTOM LINE
$3.69
Our cash dividends per common share
AEP is committed to achieving long-term sustained growth by bringing our investments closer to what customers want and value, while building an organizational culture of continuous improvement, innovation and engagement. Our strong financial performance in 2015 demonstrates we are delivering on that commitment.
2015 debt-to- capitalization ratio 53.2%
Our people contributed to AEP's strong financial performance
The foundation of AEP's success is the dedicated men and women of AEP
OUR PEOPLE
IN GAAP REVENUE
EARNINGS PER SHARE
power everything we do
CULTURE
DIVERSITY
$2.3 billion
TRAINING
To AEP, Zero Harm means we care for each other; we care enough to always choose the safest way to do a job; and, we take responsibility and accountability for speaking up to prevent harm. We believe every event is preventable and we will not put productivity ahead of safety.
SAFETY
WAGES
paid in wages
2,000 JOBS
22,500 Jobs
$345
Two Amazon distribution centers
Procurement
in state taxes
We paid
BRINGING
$640
$583 million
investment from Amazon in 3 new data centers in Ohio.
LOCAL ECONOMIES
in federal taxes
MILLION
was spent on goods and services from small businesses and diverse suppliers
$1.1 billion
AEP Supports
$227
in local taxes to AEP communities
spent on locally-based suppliers
and
49%
To bring international investment to our service territory, AEP launched a foreign direct investment strategy targeting Canada, China, Germany, India and Japan.
of AEP's total corporate spend with local suppliers
The taxes we pay support local education, public safety and economic development,
AEP is dedicated to building stronger communities by providing economic development opportunities to attract jobs, support capital investment and grow local economies. This adds value to AEP and the local communities where our employees live and work.
Sustainable
TO OHIO
Economic and Business Development worked on 170 business attraction and retention projects expected to create
$3 billion
Environment
Hunger & Housing
2.7%
10.8%
Others
Safety & Health
AEP is Building
STRONG COMMUNITIES
9.5%
Arts & Culture
5.3%
37.7%
AEP and our employees play an important role in the economic viability of our communities. Whether through corporate philanthropy or volunteer efforts, we actively engage and support local communities to help enhance the quality of life, advance education and enrich our communities.
Economic Development
Since the program launched in 2013 the AEP Foundation has committed more than
5.3%
to Credits Count a five-year dual enrollment program that helps high school students pursue college level STEM education and careers
In 2015, AEP and the AEP Foundation donated more than
Youth
Education
SM
to support 1,800 community organizations
$11 million
3.3%
20.2%
$13.5 Million
Community