American Electric Power ( )
is a major investor-owner electric utility in various parts of the United States.
AEP ranks among the nation's largest
generators of electricity, owning nearly 38,000 megawatts of
generating capacity in the U.S. AEP also owns the nation's largest
electricity transmission system, a nearly network that includes 765
kilovolt ultra-high voltage transmission lines; more than all other
U.S. transmission systems combined. AEP's transmission system
directly or indirectly serves about 10 percent of the electricity
demand in the Eastern Interconnection, the interconnected
transmission system that covers 38 eastern and central U.S. states
and eastern Canada, and approximately 11 percent of the electricity
demand in ERCOT, the transmission system that covers much of Texas.
AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian
Power (in Virginia, West Virginia, and Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and
Southwestern Electric Power Company (in Arkansas, Louisiana and
east Texas). AEP's headquarters are in Columbus, Ohio.
American Electric Power was the first utility to utilize 345KV
transmission lines which took place in 1953.
The company is divided into seven major geographic local operating
addition, two smaller divisions, Wheeling Electric Power (serving
Virginia) and Kingsport Electric Power (serving Kingsport,
Tennessee), are operated as de
facto parts of AEP Ohio and Appalachian Power,
and operates the Donald
C. Cook nuclear power
bought much of the town of Cheshire, Ohio, after it had become contaminated by AEP's Gavin Power
- AEP Ohio, made up of the former Ohio Power and Columbus
- AEP Texas, a merger of various predecessor utilities
Power, serving West
Virginia and Virginia
- Indiana Michigan Power
- Kentucky Power
- Public Service Company of Oklahoma (PSO), and
- Southwestern Electric Power Company, often
called SWEPCO, serving Arkansas, Louisiana, and eastern Texas
AEP is also a leading technology company in the energy industry,
having recently announced their plans to build an Integrated
Gasification Combined Cycle
coal-fired power plant which is expected to reduce emissions while
providing additional electricity capacity to the customers served
The company also operates its own inland barge
line, AEP River Operations (formerly MEMCO Barge Line), and owns
major tracts of land throughout its service areas.
In August 2008, American Electric Power has formed a joint venture
company with Duke Energy
to build and
own new electric transmission assets.
American Electric Power is expanding its green efforts to include
18 more International DuraStar Hybrid diesel hybrid trucks. AEP is
also teaming with Ford for the integration of a Vehicle-To-Power
grid communication system, which allows hybrid vehicles to
communicate with power companies to determine where, how long, and
what it would cost to re-charge a hybrid during travel.
Solar and wind energy
AEP is supportive of renewable energy and incorporating the use of
solar energy into its portfolio. It recently signed a deal with
Wyandot Solar LLC to purchase power from one of the largest solar
fields in the eastern United States, based in Upper Sandusky,
and operates the Desert Sky Wind
Farm and the Trent Wind
In 2009, AEP partnered with other energy companies in commissioning
a study of how to transmit wind energy generated in the Upper
Midwest to consumers in the East.
AEP is teaming with Allegheny Energy to build the proposed $1.8
billion Potomac-Allegheny Transmission line, which incorporates new
technology that will reduce carbon dioxide emissions by 380,000
tons a year. It will also allow for the transmission of renewable
energy sources, such as wind, solar, and hydroelectric. The project
will generate 5700 jobs, and $420 million in employee compensation
The Political Economy Research Institute ranks American Electric
Power 45th among corporations emitting airborne pollutants in the
United States. The ranking is based on the quantity (91 million
pounds in 2005) and toxicity of the emissions. Major pollutants
acid, and chromium
compounds. Overall, electric power
plants, such as those operated by AEP, account for almost "70
percent of sulfur dioxide emissions each year and 30 percent of
nitrogen oxides emissions." Individually, these pollutants cause
serious respiratory damage and other illnesses; when combined, they
create what's known as acid rain
causes long term damage to the environment and deterioration of
natural and man-made structures. Environmental
has named American Electric a potentially
responsible party at the Green River Disposal Inc. Superfund
toxic waste site.
Justice Department lawsuit
The United States Justice Department filed a lawsuit in November 3,
1999, against AEP and six other companies for violating the
Clean Air Act
. On October 8
, AEP agreed to
install US$4.6 billion in equipment to reduce emission, as well as
pay a US$15 million civil fine.
The company will cut 813,000 tons of
air pollutants annually once all of the controls are installed.
According to the press release, the agreement imposes caps on
emissions of pollutants from 16 plants located in five states.
facilities are located in Moundsville (2 facilities), St.
Albans, Glasgow, and New Haven (2 facilities), West Virginia; Louisa,
Lyn and Carbo, Virginia; Brilliant, Conesville, Cheshire, Lockbourne, and Beverly, Ohio; and
Rockport and Lawrenceburg, Indiana.
AEP's political action committee, the American Electric Power
Committee for Responsible Government, has increased spending since
the 1998 election cycle, reaching $1.4 million in contributions in
2007-2008, 57 percent to Republicans. Also in 2008, American
Electric Power significantly increased lobbying expenditures from
less than $2 million a year to over $11 million, as climate
legislation became a key issue in Washington.
In 2009, AEP CEO Michael Morris
contributed $100,000 to Newt Gingrich's American Solutions for
Winning the Future
, which supports increased oil drilling and
opposes mandatory limits on greenhouse gas pollution. American
Electric Power is also a member of the American Coalition
for Clean Coal Electricity
, a lobbying and marketing
organization which opposes President Obama's climate and clean