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GRI - GLOBAL REPORTING INITIATIVE

This report was developed according to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.1 (G3) and meets the content requirements of Application Level A. Our GRI elements were reviewed by and our Application Level A was affirmed by GRI. Read GRI's statement of this review.


Standard Disclosures

The GRI guidelines provide a voluntary reporting framework used by organizations around the world as the basis for sustainability reporting. We are using the G3.1 standards, as well as the Electric Utility Sector Supplement. We have listed page numbers for indicators discussed in our printed 2012 Corporate Responsibility Report.

In 2012, AEP participated in an industry-wide review of GRI's proposed G4 draft guidelines through the Electric Power Research Institute's (EPRI) Energy Sustainability Interest Group. Thirty three EPRI electric utility member-companies reviewed G4 and provided comments for GRI's consideration.

GRI Table of Contents
1 Strategy & Profile (fully reported on)
1.1 Statement by the CEO
  Statement by Executive Vice President, Environmental Safety & Health and Facilities
1.2 Description of key impacts, risks, and opportunities
2011 10K (Item 1A - Risk Factors pages 26-37)
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2 Organizational Profile (fully reported on)
2.1 Name of the organization
2.2

Primary brands, products, and/or services
About AEP
AEP's 2011 10K ( Item 1 - Business, pages 1-3)

2.3 Operational structure of the organization
AEP's 2011 10K (pages 1-3)
2.4 Location of organization’s headquarters
About AEP
Facts at a Glance
2.5 Countries in which the company has operations - United States
2.6 Nature of ownership and legal form
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
2.8 Scale of the reporting organization (including EU1, EU2)
2.9 Significant changes in size, structure, or ownership.  See Appendix A to the Proxy Statement
2.10 Awards received in the reporting period
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3 Report Parameters (fully reported on)
3.1 Reporting Period
3.2 Date of most recent previous report
3.3 Reporting cycle
3.4 Contact point for questions regarding the report or its contents
3.5 Process for defining report content, including:
3.6 Boundary of the report
3.7 Specific limitations on the scope or boundary of the report
3.8 Reporting on other entities - See 3.6 
3.9 Data measurement techniques and the bases of calculations
3.10 Explanation of the nature and effect of any re-statement.
Also see pages 1-25 from AEP's 2011 10K
3.11 Signifcant scope, boundary, or measurement changes from previous reporting period.
  GRI Content Index (fully reported on)
3.12 Standard disclosures table
3.13 Accuracy and completeness of report.
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4 Governance (fully reported on)
4.1 Governance structure of the organization.
4.2 Indicate whether the Chair of the Board is also an executive officer.
   
4.3 Independence of the Executive Board

Also see: Director Independence Standards (PDF)

4.4 Making recommendations to the Executive Board.
  Also see AEP's Annual Proxy Statement and Corporate Governance Fact Sheet
4.5 Linkage between performance and executive compensation.
4.6 Avoiding conflicts of interest (PDF)
4.7 Qualifications of the Executive Board.

Also see:Principles of Corporate Governance

4.8 Corporate mission and values

Also see: Leadership, Management & Strategy

4.9 Board-level processes for identifying and managing risks and opportunities.
4.10 Processes for evaluating the Board’s own performance
4.11 How the precautionary approach is addressed.

Also see: Leadership, Management & Strategy

4.12 Externally developed economic, environmental, and social charters.

Also see: Stakeholders - The Issues

4.13 Memberships in associations

Also see:Public Policy Strategy

4.14 Stakeholder groups engaged by the organization.
4.15 Identification and selection of stakeholders.
4.16 Approaches to stakeholder engagement.
4.17 Key topics and concerns raised through stakeholder engagement
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Management Approach and Performance Indicators (fully reported on)

   
  Economic Performance Indicators (EC) (fully reported on)
 

 

EC1 Direct economic value
EC2 Financial implications of climate change
EC3 Defined beneft plan coverage
EC4 Financial assistance received from government
 

Market Presence (fully reported on)

EC5 Entry level wage compared to local minimum wage
EC6 Locally based suppliers spending

For more information, also see the Supply Chain discussion in AEP’s Corporate Sustainability Report.

EC7 Hiring from local community

For more information, also see the Sustainable Work Force discussion in AEP’s Corporate Sustainability Report.

 

Indirect Economic Impacts (fully reported on)

EC8 Public benefit

For more information, also see the Community Involvement discussion in AEP’s Corporate Sustainability Report.

EC9 Indirect economic benefits
AEP may direct a study of this in the future.
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  Environmental (fully reported on)
 

Disclosure on Management Approach

Also see: Our Issues

  Material (fully reported on)
EN1 Materials used by weight or volume.
EN2 Percentage of materials used that are recycled
  Energy (fully reported on)
EN3 Direct energy consumption by primary energy source.
EN4 Indirect energy consumption by primary source
EN5 For more information, also see the The Role of Energy Efficiency section in AEP’s Corporate Sustainability Report.
EN6 Initiatives to provide energy-efficient or renewable energy based products and services

Also see: Energy Security, Reliability & Growth

EN7 Initiatives to reduce indirect energy consumption and reductions achieved - None at this time
  Water (fully reported on)
EN8 Total water withdrawal by source.
EN9 Water sources significantly affected by withdrawal of water.
EN10 Percentage and total volume of water recycled and reused.
  Biodiversity (fully reported on)
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
EN12 Impacts on biodiversity
EN13 Habitats protected or restored

Also see: Biodiversity & AEP

EN14 Strategies for managing impacts on biodiversity

Also see: Biodiversity & AEP

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations
  Emissions, Effluents & Waste (fully reported on)
EN16 Total direct and indirect greenhouse gas emissions by weight.
EN17 Other relevant indirect greenhouse gas emissions by weight.
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19 Greenhouse gas emissions
EN20 NOx, SOx, and other significant air emissions
EN21 Total water discharge by quality and destination.
EN22 Waste volume by type and disposal method
EN23 Total number and volume of significant spills.
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous - See EN22
EN25 Water bodies and related habitats significantly affected by discharges of water and runoff.
  Products & Services (fully reported on)
EN26 Initiatives to mitigate environmental impacts of products and services
Also see: Environmental Performance
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. - See EN22
EN28 Fines for noncompliance with environmental regulations
EN29 Impacts of transporting products, goods, materials and work force
EN30 Total environmental protection expenditures and investments by type. - Please see EN26
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  Labor Practices and Decent Work Performance Indicators (LA) (fully reported on)
 

Disclosure on Management Approach
For more information, also see the Work Force discussion in AEP’s Corporate Sustainability Report.

 

LA1 Total work force
LA2 Employee turnover
LA3 Full-time, temporary or part-time employee benefits
LA4 Percentage of employees covered by collective bargaining agreements
LA5 Minimum notice period(s) regarding operational changes
 

Occupational Health and Safety (fully reported on)

LA6 Percentage of work force represented in health and safety committees
LA7 Rates of injury and absenteeism
LA8 Serious diseases programs
LA9 Health and safety topics covered in formal agreements.
 

Training and Education (fully reported on)

LA10 Average hours of training
LA11 Skills management and lifelong learning programs
LA12 Percentage of employees receiving performance reviews
LA13 Composition of governance bodies
LA14 Ratio of basic salary of men to women
LA15 Return to work and retention rates after parental leave, by gender
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Human Rights Performance Indicators (HR) (fully reported on)

 

Disclosure on Management Approach
For more information, also see the Stakeholder Engagement discussion in AEP’s Corporate Sustainability Report.
Also see: Principles of Business Conduct

HR1 Human rights clauses in investment agreements
HR2 Human rights screening for contractors
HR3 Human rights policies, procedures and training
HR4 Discrimination incidents and actions taken
HR5 Freedom of association
 

Child Labor (fully reported on)

HR6 Child labor
 

Forced and Compulsory Labor (fully reported on)

HR7 Compulsory labor
 

Security Practices (fully reported on)

HR8 Security personnel trained in human rights
 

Indigenous Rights (fully reported on)

HR9 Violations of indigenous people’s rights. - None
HR10 Human rights reviews and/or impact assessments
HR11 Number of grievances related to human rights
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Society Performance Indicators (SO) (fully reported on)

 

Disclosure on Management Approach
For more information, also see the Stakeholder Engagement discussion in AEP’s Corporate Sustainability Report.

S01 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting .
 

Corruption (fully reported on)

S02 Business units analyzed for corruption.
S03 Percentage of employees trained in organizaton’s anti-corruption policies and procedures
S04 Actions taken in response to incidents of corruption
 

Public Policy (fully reported on)

SO5 Public policy positions
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
SO7 Legal actions for anti-competitive behavior
SO8 Fines for noncompliance with laws and regulations
Also see EN28
SO9 Operations with significant potential or actual negative impacts on local communities
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Product Responsibility  Performance Indicators (PR) (fully reported on)

  Disclosure on Management Approach
 

Customer Health and Safety (fully reported on)

PR1 Health & safety life cycle stages
PR2 Number of noncompliance incidents
 

Product and Service Labeling (fully reported on)

PR3 Product and service information
PR4 Number of noncompliance labeling incidents
PR5 Customer satisfaction
 

Marketing Communications (fully reported on)

PR6 Programs related to marketing communications
PR7 Number of noncompliance marketing incidents
 

Customer Privacy (fully reported on)

PR8 Substantiated breaches of customer privacy
 

Compliance (fully reported on)

PR9 Fines for use of products and services noncompliance.
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AEP – Electric Utility Sector Supplement

  Organizational Profile (fully reported on)
EU1 Installed capacity (MW)
EU2

Net energy output - See EU1

EU3 Number of accounts
EU4 Transmission and Distribution mileage
EU5 CO2 permits
  Economics (fully reported on)
EU6 Reliability
EU7 Demand-side programs - Please see EU10 For more information, also see the Public Policy and Climate Change discussions in AEP’s Corporate Sustainability Report.
EU8 Research and development
Also see the Energy Security, Reliability & Growth section
EU9 Nuclear decommissioning. - See pages 15-16 of the AEP's 2011 10K
 

Availability and Reliablity (fully reported on)

EU10 Planned capacity
For more information, also see the Energy Security, Reliability & Growth discussion in AEP’s Corporate Sustainability Report.
 

Demand-Side Management (fully reported on)

EU11 Generation efficiency
EU12 Losses
  Environmental (fully reported on)
EU13 Biodiversity of offset
EU Commentary on EN1 Materials used by weight or volume Report in-use inventory of solid and liquid high level and low level PCBs (in kilograms or litres)
EU Commentary on EN8 Water used for Processing, Cooling and Consumption in Thermal and Nuclear Power Plants, including use of Water in Ash Handling
EU Commentary on EN12 Include impacts of transmission line corridor maintenance, fragmentation and isolation (islandization) and impacts of thermal discharge
EU Commentary on EN14 Commentary on EN 14
EU Commentary on EN16 Report CO2e per MWh, broken down by regulatory regime
EU Commentary on EN20 NOx, SOx and other significant air emissions by type and weight.
EU Commentary on EN21 Total water discharge by quality and destination, including EU Commentary on thermal discharges.
EU Commentary on EN22 Include PCB waste, nuclear waste, volume of spent nuclear fuel sent for processing and reprocessing per year. In addition, report radioactive waste produced per net MWh nuclear generation per year.
  Labor (fully reported on)
EU14 Processes to ensure retention and renewal of skilled workforce
EU15 Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region
EU16 Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors
EU17 Days worked by contactors
EU Commentary on LA1 Report on total Contractor workforce by employment type, employment contract and region
EU Commentary LA2

Total number and rate of employee turnover by age group, gender, and region.

EU17 Days worked by contactors
EU Commentary on LA4 % of contractors covered by collective bargaining agreements.
EU Commentary on LA7 Health and safety performance of contractors and subcontractors
EU18 % of employees that have undergone health and safety training.
  Human Rights (fully reported on)
EU Commentary on HR5 Report on management mechanisms to address the right to strike or instances of lock out, etc.
  Society (fully reported on)
EU Commentary on 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
EU19 Participatory decision making processes with stakeholders and outcomes of engagement
EU20 Approach to managing the impacts of involuntary displacement
EU21 Contingency planning measures and disaster/emergency management plan and training programs, and recovery/restoration plans

Also see: Dealing with H1N1

EU22 Number of people displaced by new or expansion projects related to generation facilities and transmission lines, broken down by physical and economic displacement
EU23 Programs, including those in partnership with government, to improve or maintain access to electricity services
  Product Responsiblity (fully reported on)
EU Commentary on PR1 Assessing Community health risks
EU24 Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity services
EU25 Number of injuries and fatalities to the public involving company assets, including legal judgments, and settlements and pending legal cases of diseases
 

Access (fully reported on)

EU26 Percentage of population unserved in licensed distribution areas, broken down by population in rural areas and urban areas
EU27 Number of residential disconnections for non-payment, broken by duration of disconnection
EU28 Power outage frequency
EU29 Average power outage duration
EU30 Average plant availability factor by energy source and by country or regulatory regime
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