Supporting the Federal Sector
Military and other federal government agencies and facilities are an important customer segment and growth area for AEP. We provide electric service through our regulated business to over 3,500 federal accounts. Our focus is on three areas of interest:
- Utility Energy Services Contracts (UESC) within our regulated footprint
- Various business development opportunities outside of our regulated service territory with our competitive businesses (e.g., AEP Energy Partners)
- Utilities Privatization (UP) of military facilities both within and outside our regulated footprint
Through these avenues, we help our federal and military customers meet their sustainability and resiliency goals and measures. The federal government has a comprehensive framework for action through 2020 that calls for using resources more efficiently and acquiring more energy from renewable resources. To support that initiative, we help the federal government mitigate the effects of climate change on military operations, installations and national security.
AEP has proposed energy resilience solutions to the Department of Defense (DoD) to assist in preparing for and recovering from energy disruptions impacting mission assurance on military installations. Further, energy resilience encourages the necessary planning and capabilities to ensure available, reliable, and quality power to continuously accomplish DoD missions.
Thirty of our large federal accounts may present new opportunities for UESC-type work. UESC provides federal customers with comprehensive energy and water efficiency improvements and demand reduction services. These projects can encompass a broad range of energy conservation measures, including system upgrades and recommissioning, retrofit projects, renewable energy, cogeneration plants and microgrids.
In 2018, AEP Energy was awarded a $362 million contract with the Defense Logistics Agency (DLA) to provide over 6.5 terawatts of electricity to various U.S. government and military installations operating in the PJM Interconnection (regional transmission operator) over a five year period beginning in 2019.
We are also partnering with military facilities to offer solutions to privatize on-base utility systems (electricity, natural gas, water and wastewater). These opportunities allow AEP to operate and maintain the facilities’ electricity systems and allow the military to stay focused on its mission. Two examples of where we are working with the military to manage their utilities include Goodfellow Air Force Base in San Angelo, Texas and Red River Army Depot in Texarkana, Texas.