EC6 - Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

Report the organization's geographic definition of local – Providers of materials, products and services that are based in the same geographic market as the reporting organization (i.e. - no international payments to the supplier are made). The geographic definition of "local" varies because cities and regions within county, even small countries could reasonably be viewed as "local".

Report whether the organization has a policy or common practices for preferring locally based suppliers either organization-wide or for specific locations. – AEP has no formal policy to give preference to locally based suppliers. Procurement does work with operating company personnel to obtain competitive bids from qualified suppliers within the operating company area.

If so, state the percentage of procurement budget – As reported above, AEP has no formal policy nor does it administer such a policy.

Indicate the factors that influence supplier selection (e.g. - costs, environmental and social performance) in addition to their geographic location. – For the most part, the driving factor on most equipment and material purchases is total owning cost. Suppliers are selected to participate in a bid process based on several factors, including quality, safety and environmental compliance. For services, the factors tend to be driven by the scope of the work. Safety is generally among the top factors along with cost. Geographic location is a greater a factor when determining freight charges or logistics.