Goals and Performance - Energy Security, Reliability & Growth

Goal

2010 Progress

Future Target

Continue to improve the three reliability metrics in jurisdictions where performance is unfavorable to peer companies or agreed-upon regulatory requirements.  

SAIDI -- The three-year average (2008-2010) improved 1.7 percent over the previous three-year rolling average (2007-2009). In 2010, our three-year SAIDI average was 194.7 minutes -- our best performance in five years.

SAIFI -- At the end of 2010, the three-year rolling average of SAIFI was 1.397 compared with 1.471 in 2009, an improvement of 5 percent. This also was our best performance in five years.

CAIDI – Increased nearly 3.5 percent in 2010 compared with the 2009 three-year rolling average. CAIDI was negatively impacted by the work force restructuring.

Continue to improve three-year rolling average of all three reliability metrics, as stated.

Deploy 5 million smart meters throughout AEP service territory by 2015, pending regulatory approval. Update gridSMART®
initiatives.

gridSMART® projects under way in 4 states – Ohio, Oklahoma, Indiana and Texas. Largest meter deployment in Texas, with close to 1 million smart meters. Most comprehensive integrated technology demonstration in Ohio. Read a state-by-state summary of each project in Energy Security, Reliability & Growth.

Through our early deployments we hope to determine if the expense of the meters is offset by the benefits. We will continue to pursue the deployment of these smart grid technologies where regulators are supportive and there is a proven business case. However, it is unlikely we will attain 5 million meter goal by 2015 given these challenges.

Compliance with NERC reliability regulations is critical to ensuring the reliability of the bulk power system.

Enhancements were made to the governance model of AEP's NERC Reliability Compliance Program. Specifically, the NERC Compliance Steering Committee (NCSC) was established.  The chief mission of this group is to improve coordination across all applicable business units to ensure uniformity and consistency in the way AEP complies with reliability regulations and to ensure that compliance issues are addressed in an expeditious manner.  Additionally, the NCSC is charged with recommending system and process improvement recommendations to the executive level Reliability Compliance Committee (RCC) with a goal of making the administration of the program more sustainable going forward.

Preparation for a 2011 audit of AEP's compliance with the Critical Infrastructure Protection (CIP) standards.  The audit is scheduled to occur on June 6-10, 2011 and will cover all (8) of the CIP standards.  This will be AEP's first ever complete audit of the CIP standards.  The audit will primarily involve the following AEP business units: Transmission, Generation, Commercial Operations, IT, and Physical Security.

Successful completion of NERC CIP audit. 

Continue to develop a culture of compliance across AEP.

Continue to advance AEP Transmission three-pronged strategy.

See Energy Security, Reliability & Growth for a full update on progress. 

Seek regulatory approval for Transcos in Kentucky, Indiana and West Virginia.

Continue to advance ETT projects within ERCOT and joint ventures that will build transmission capacity within and outside of our service territory.