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SO1 - Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

As a general policy, AEP has implemented a program of local community engagement at all facilities where our operations have a potential to impact the surrounding environment and the people who live or work nearby. Local operations managers are given wide latitude to work cooperatively and collaboratively with local stakeholders to assess and address any negative impacts that might arise from our normal operations.

The primary reflection of our efforts is a coordinated Community Affairs program led by the External Affairs leadership at AEP’s various operating utilities and by the managers of our power generating facilities. These employees serve as a primary point of contact with local communities and civic leaders to maintain an open, two-way dialogue that allows the company to continuously assess community reaction to the company’s initiatives and plans. Because our power generation facilities are typically located in remote or rural areas, our power plant managers are actively involved in activities of nearby communities where the plants are located and forge the primary relationship with the communities and their leaders.

By way of example, the residents of Brilliant, OH brought forth concerns in 2008 about an offensive smell in the community that they felt was coming from the company's Cardinal power plant. Upon investigation, it was determined that the odor was coming from an area where decaying algae from the Cardinal fly ash pond was creating a very noticeable smell. AEP installed two aerators to help mitigate the odor problem in the spring of 2009. These aerators proved to be effective and a third installation took place late in 2011.

Cardinal also received complaints about an ammonia smell coming from the plant. The problem was determined to be originating in the Unit-1 and Unit-2 urea batching process (utilized in the operation of the plant's selective catalytic reduction emission control system). During the spring of 2011, the plant started using a simultaneous mixing process and installed a mixing tank vent fogging system to prevent the off gassing of ammonia vapors. Both have successfully mitigated the ammonia issue. Ammonia monitoring has taken place at the closest plant entrance gate in relation to the Village of Brilliant. These monitors continue to verify that ammonia vapor is not being carried away from Cardinal Plant property.

Our mitigation efforts were shared with the Wells Township trustees as well as the general community during a November, 2011 public information meeting. Although the crowd was small, message points provided by the plant manager were well received. Questions were posed, and answered, regarding a missing guardrail on a road heavily traveled by Ohio American Energy's coal trucks running between the mine and Cardinal Plant. A Wells Township Trustee explained that the township and coal company were working together to have new guardrail installed in this area. Other questions were asked regarding gypsum (how much is produced at the plant and safety of its end use). The plant manager provided detailed responses which did not require additional follow up. No additional concerns about odors were raised. Local media were apprised of the meeting and a Clear Channel radio outlet ran the entire meeting on its locally aired Sunday morning "Weekend Focus" show.

2012