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Working With Our Suppliers

Our commitment to the environment extends to our suppliers, both fuel and nonfuel, and we work closely with them on understanding and meeting our expectations for environmental performance. When it comes to nonfuel purchases at the corporate level, we ask bidders to complete a sustainability survey, the results of which are considered during the decision-making process. We also intend to revise our nonfuel purchasing policy to better enable us to assess the impact that our suppliers have on water, air, land and energy. Once we evaluate this, we will consider making environmental performance a factor in supplier reviews, starting in 2012.

AEP is one of 16 investor-owned electric utilities that belong to the Electric Utility Industry Sustainable Supply Chain Alliance, a 501(c)6 nonprofit organization that is registered as a standards development organization. The alliance sent surveys to more than 700 suppliers during the past two years to learn more about their environmental performance and to identify trends.

Last year, 326 suppliers responded to the survey – an increase of more than 80 over 2009. More respondents indicated they measured GHGs than in 2009. However, the survey also showed that of those not measuring GHG emissions in 2010, fewer have plans to do so in the next 12 months, compared with 2009. This may be due to the change in public interest in climate change. The alliance’s 2011 strategic plan, shaped in part by these survey results, can be found at www.EUISSCA.org. The alliance also supported creation of a life cycle analysis related to reducing the carbon footprint associated with production of wire and cable.

An aerial view of an area surface mine in eastern Kentucky; about 7 percent of AEP’s coal supply comes from mountaintop mining operations.

AEP's 2009 Coal Supplier Survey
Final Report and Analysis of AEP's 2009 Coal Supplier Survey
(pdf)