Global Reporting Initiative (GRI)

Corporate Citizenship / Corporate Sustainability Report / GRI - The Global Reporting Initiative

Leadership, Management & Strategy
Environmental Performance
Work Force Issues
Public Policy Strategy
Climate Change
Energy Security, Reliability & Growth
Stakeholder Engagement
GRI - The Global Reporting Initiative
Electric Utility Supplement
Mid-cycle Reporting Update

This report was developed according to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.0 (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.

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 standards, as well as many indicators developed for the new Electric Utility Sector Supplement, which was still in draft form at the time we developed this years report. We have listed page numbers for indicators discussed in our printed 2009 Corporate Responsibility Report.

GRI Table of Contents

Profile
GRI Content Index
Governance, Commitments, & Engagement
Economic Performance Indicators
Environmental Performance Indicators
Labor and Work Performance
Human Rights
Society
Product Responsibility
Electric Utility Sector Supplement Index

		Report Page #
1	Strategy & Profile
1.1	Statement by the CEO 2007 Annual Report	2-3
	Statement by Executive Vice President, Environmental Safety & Health and Facilities	4-5
1.2	Description of key impacts, risks, and opportunities 2008 10K (see pages 23-34)	6-7

		Report Page #
2	Organizational Profile
2.1	Name of the organization	cover/ TOC
2.2	Primary brands, products, and/or services	inside cover
2.3	Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures. AEP's 2008 10K (see pages 1-3)
2.4	Location of organization’s headquarters About AEP Facts at a Glance	inside front cover
2.5	Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. - United States	cover
2.6	Nature of ownership and legal form
2.7	Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).	inside back cover
2.8	Scale of the reporting organization (including EU1, EU2)
2.9	Significant changes during the reporting period regarding size, structure, or ownership including: The location of, or changes in operations, including facility openings, closings,and expansions. Pages of Appendix A to the 2008 Annual Report
2.10	Awards received in the reporting period

		Report Page #
3	Report Parameters
3.1	Reporting Period	7
3.2	Date of most recent previous report	7
3.3	Reporting cycle	7
3.4	Contact point for questions regarding the report or its contents	8
3.5	Process for defining report content, including: Determining materiality; Prioritizing topics within the report; and Identifying stakeholders the organization expects to use the report.	6-7
3.6	Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance	7-8
3.7	State any specific limitations on the scope or boundary of the report
3.8	Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. - See 3.6
3.9	Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report	8
3.10	Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). See page 23 from AEP's 2008 10K	8
3.11	Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.	8
	GRI Content Index
3.12	Table identifying the location of the Standard Disclosures in the report.	66-68
3.13	Policy and current practice with regard to seeking external assurance for the report.	8

		Report Page #
4	Governance
4.1	Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.	8-9
4.2	Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).
4.3	For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
4.4	Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
4.5	Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).
4.6	Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7	Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics. Principles of Corporate Governance Corporate Governance Charter
4.8	Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.	6
4.9	Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.	inside front cover – Letter from board 6-9
4.10	Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.
4.11	Explanation of whether and how the precautionary approach or principle is addressed by the organization.	Chairmans Letter 2-3 4-5
4.12	Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
4.13	Memberships in associations Has positions in governance bodies; Participates in projects or committees; Provides substantive funding beyond routine membership dues; or Views membership as strategic. Also See:Partnerships	47-48
4.14	List of stakeholder groups engaged by the organization.	59-64
4.15	Basis for identification and selection of stakeholders with whom to engage.	6-7
4.16	Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.	6-7 and 59-64
4.17	Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. (Also, there is a top 5 list in each subsequent section of the CR report.)	59-64

Management Approach and Performance Indicators

		Report Page #
	Economic Performance Indicators (EC)
	Disclosure on Management Approach 2008 Annual Report Lehman Presentation	2-5 8-9
EC1	Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. (Core)
EC2	Financial implications and other risks and opportunities for the organization's activities due to climate change. (Core) AEP and Climate Change Presentation	41-48
EC3	Coverage of the organization's defined benefit plan obligations. (Core)
EC4	Significant financial assistance received from government. (Core) See the Income Taxes section of AEP's 2008 10-K, pages A-122 through A-125
	Aspect: Market Presence
EC5	Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation AEP does not have a standard entry-level wage. However, AEP's 2008 entry-level wages were 146% - 173% compared to local minimum wages. These numbers are based on a range of lowest minimum wage and the ratio of the paid wage to the highest minimum wage
EC6	Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. (Core)
EC7	Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.
	Aspect: Indirect Economic Impacts
EC8	Development and impact of infrastructure investments and services provided primarily of public benefit through commercial, in-kind, or pro bono engagement (Core)
EC9	Understanding and describing significant indirect economic impacts, including the extent of impacts AEP may direct a study of this in the future.

		Report Page #
	Environmental
	Disclosure on Management Approach	DEW Letter 4-5 11-12
EN1	Materials used by weight or volume. (Core) –In 2008, AEP consumed approximately 77 million tons of coal to produce electricity as well as 103 BCF of natural gas. In total, AEP relies on 90% of fossil fuels and 10% of renewable and nuclear resources to generate electricity.
EN2	Percentage of materials used that are recycled input materials –With regards to the production of electricity, the vast majority of input materials are coal and natural gas. As such, the percentage of materials used that are recycled input materials is negligible. To view the result of AEP’s recycling efforts, please see EN27.
EN3	Direct energy consumption by primary energy source. (Core) –In 2008, AEP consumed approximately 77 million tons of coal to produce electricity as well as 103 BCF of natural gas.
EN4	Indirect energy consumption by primary source –With regards to the production of electricity, indirect energy consumption is a very small percentage of total energy consumption and is not being monitored at this time.
EN5	Energy saved due to conservation and efficiency improvements	ESRG 55
EN6	Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.(Additional) See EU10, Public Policy – Pages 35-37, Climate Change – Pages 43-44, Energy Security, Reliability & Growth (ESRG)– page 55
EN8	Total water withdrawal by source.(Core)	14-15
EN9	Water sources significantly affected by withdrawal of water.	14-15
EN10	Percentage and total volume of water recycled and reused.	14-15
EN11	Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. (Core) Conservation	17
EN12	Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.(Core) Conservation	17
EN13	Habitats protected or restored (Additional)	17
EN14	Strategies, current actions, and future plans for managing impacts on biodiversity. (Additional)	17
EN15	Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. (Additional)
EN16	Total direct and indirect greenhouse gas emissions by weight. (Core)	inside front cover
EN17	Other relevant indirect greenhouse gas emissions by weight. (Core)	12
EN18	Initiatives to reduce greenhouse gas emissions and reductions achieved.	41-48
EN19	Emissions of ozone-depleting substances by weight. (Core)
EN20	NOx, SOx, and other significant air emissions by type and weight. (Core)	12
EN21	Total water discharge by quality and destination. (Core)	14-15 see EN8
EN22	Total weight of waste by type and disposal method. (Core)
EN23	Total number and volume of significant spills. (Core)	11
EN24	Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. (Additional)	see EN22
EN25	Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. (Additional)
EN26	Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. (Core)	11-18
EN27	Percentage of products sold and their packaging materials that are reclaimed by category. (Core)	see EN22 15
EN28	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. (Core)	11
EN29	Significant environmental impacts of transporting products, goods, materials and workforce	11
EN30	Total environmental protection expenditures and investments by type. (Additional)	see EN26 11

		Report Page #
	Labor Practices and Decent Work Performance Indicators (LA)
	Disclosure on Management Approach	21-23
LA1	workforce by employment type, employment contract, and region. (Core)	21-23
LA2	Total number and rate of employee turnover by age group, gender, and region.(Core)
LA3	Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. (Additional)
LA4	Percentage of employees covered by collective bargaining agreements (Core)	30
LA5	Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. (Core) Two week notice is given before layoffs occur, where applicable. This is a minority provision; most locations do not have this requirement.
	Aspect: Occupational Health and Safety
LA6	Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs	26
LA7	Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. (Core) Recordable AEP= 1.38; Severity AEP= 26.94	22-23
LA8	Education, training, counseling, prevention, and risk-control programs in place to assist work force members, their families, or community members regarding serious diseases.	26-29
LA9	Health and safety topics covered in formal agreements with trade unions
LA10	Average hours of training per year per employee by employee category	26-29
LA11	Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.	26-29
LA12	Percentage of employees receiving regular performance and career development reviews. (Additional)
LA13	Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. (Core) Diversity	29
LA14	Ratio of basic salary of men to women by employee category.	28-29

		Report Page #
	Human Rights Performance Indicators (HR)
	Disclosure on Management Approach	21-23
HR1	Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening
HR2	Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken –AEP does not have a formal process to screen nor train its suppliers and contractors with respect to human rights. See HR3	30
HR3	Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained	30
HR4	Total number of incidents of discrimination and actions taken. (Core)	28-29
	Aspect: Freedom of Association and Collective Bargaining
HR5	Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights
	Aspect: Child Labor
HR6	Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor	30
	Aspect: Forced and Compulsory Labor
HR7	Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor	30
	Aspect: Security Practices
HR8	Percentage of security personnel trained in the organization’s policies or procedures concerning the aspects of human rights that are relevant to operations
	Aspect: Indigenous Rights
HR9	Total number of incidents of violations involving rights of indigenous people and actions taken. (Additional) - None

		Report Page #
	Society Performance Indicators (SO)
	Disclosure on Management Approach	60-63
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
	Aspect: Corruption
S02	Percentage and total number of business units analyzed for risks related to corruption
S03	Percentage of employees trained in organizaton’s anti-corruption policies and procedures	see SO2
S04	Actions taken in response to incidents of corruption	see SO2
	Aspect: Public Policy
SO5	Public policy positions and participation in public policy development and lobbying. (Core)	33-38
SO6	Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. (Additional)	33
SO7	Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. (Additional)
SO8	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. (Core)	11

		Report Page #
	Product Responsibility Performance Indicators (PR)
	Disclosure on Management Approach	8-9 11-12
	Aspect: Customer Health and Safety
PR1	Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage or significant products and services categories subject to such procedures	11-12 ESRG 55-56
PR2	Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes	23
	Aspect: Product and Service Labeling
PR3	Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements
PR4	Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
PR5	Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
	Aspect: Marketing Communications
PR6	Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
PR7	Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes -There were no incidents of non-compliance in 2008
	Aspect: Customer Privacy
PR8	Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
	Aspect: Compliance
PR9	Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. (Core).	11

		Report Page #
	AEP – Electric Utility Sector Supplement 2008
EU1	Installed capacity (MW), broken down by energy source and by country or regulatory regime
EU2	Number of residential, industrial and commercial customer accounts
EU3	Length of transmission and distribution lines by voltage
EU4	Allocation of CO₂ emissions permits, broken down by country or regulatory regime Confidential market information
EU5	Planning to ensure short and long-term electricity availability and reliability
EU6	Demand-side management programs including residential, commercial and industrial programs	see EU10 35-37 43-44 55
EU7	Research and development activity aimed at providing reliable and affordable electricity and promoting sustainable development	51-56
EU8	Provisions for decommissioning of nuclear power sites See pages 11-12 of the AEP's 2008 10K	16
	Aspect: Availability and Reliablity
EU9	Planned capacity (MW) against projected electricity demand over the long term, broken down by energy source and country or regulatory regime	51-52
	Aspect: Demand-Side Management
EU10	Estimated capacity (MW) saved through demand-side management programs
EU11	Estimated energy (MWh) saved through demand-side management programs, broken down by residential, commercial and industrial customers	see EU10
EU12	Average generation efficiency by energy source and by country or regulatory regime
EU13	Transmission and distribution efficiency -Distribution Efficiency - "Line Loss" - AEP and EPRI are beginning an initiative to study line loss. The project is titled "Green Circuits". Line losses in the U.S. can be as high as 10%. On AEP's 765KV system the average line loss is –1%.
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)	15
EU Commentary on EN8	Water used for Processing, Cooling and Consumption in Thermal and Nuclear Power Plants, including use of Water in Ash Handling	14-15
EU14	Biodiversity of replacement habitats compared to the biodiversity of the areas that are being replaced (Core)	17
EU Commentary on EN16	Please see EU Commentary on EN20
EU Commentary on EN20	Emissions per MWh net generation (PDF)
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.	15-17 see EU EN1
EU15	Processes to ensure retention and renewal of skilled workforce	26-29
EU Commentary on LA1	Report on total Contractor workforce by employment type, employment contract and region
EU16	Total subcontracted workforce At this time, AEP is unable to compile these numbers.	25
EU17	Percentage of contractors and subcontractors that have undergone relevant health and safety training	25
EU Commentary on LA4	% of contractors covered by collective bargaining agreements
EU Commentary on LA7	Health and safety performance of contractors and subcontractors In 2008, AEP established metrics to track injury statistics for contractors who perform capital work for AEP. This metric includes Transmission, Generation, and Distribution. The 2009 recordable rate goal is 2.00. The combined contractor recordable rate for 2008 = 1.90.
EU Commentary on HR5	Report on management mechanisms to address the right to strike or instances of lock out, etc.
EU Commentary on SO1	Include discussions of programs related to influx of workers and impacts on neighboring communities, changes to land-use, impacts on infrastructure and changes to the aesthetics and quality of the landscape.
EU18	Participatory decision making processes with stakeholders and outcomes of engagement	59-64
EU19	Approach to managing the impacts of involuntary displacement	see EU21
EU20	Contingency planning measures and disaster/emergency management plan and training programs, and recovery/restoration plans Human Resources does maintain a Business Continuity Plan and Disaster Recovery Plan (subset of AEP Plan) as well as a Pandemic plan
EU21	Number of people displaced by new or expansion projects related to generation facilities and transmission lines, broken down by physical and economic displacement
EU22	Programs, including those in partnership with government, to improve or maintain access to electricity services
EU23	Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity services
EU Commentary on PR1	Assessing Community health risks
EU24	Number of injuries and fatalities to the public involving company assets, including legal judgments, and settlements and pending legal cases of diseases
	Aspect: Access
EU25	Percentage of population unserved in licensed distribution areas, broken down by population in rural areas and urban areas AEP does not have the requested information and therefore is unable to perform the analysis.
EU26	Number of residential disconnections for non-payment, broken by duration of disconnection
EU27	Power outage frequency 2008 AEP System SAIFI = 1.468
EU28	Average power outage duration 2008 AEP System SAIDI = 198.0
EU29	Average plant availability factor by energy source and by country or regulatory regime