| Challenge |
Goal |
2008 Progress |
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Current rate-making models incorporate too much
lag and do not account for the large investments necessary by utilities to replace existing facilities, expand capacity and modernize the grid.
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Promote alternative rate-making models that reduce the time from investment to return on investment and help facilitate societal goals, such as energy conservation.
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AEP has been working with regulators and
legislators to explore several models, including future test years, Construction Work in Progress, riders and trackers and formula rates.
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The state of the nation’s transmission grid is inadequate to meet future needs. We need an EHV transmission grid overlay, which requires modernization of siting processes and an interconnectionwide planning protocol.
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Lead the national policy effort to establish federal siting authority and broad-based planning procedures and cost allocation.
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Announced plans for EHV transmission projects that total 2,600 miles.
Presented our vision for new transmission planning, siting and cost allocation methodologies in several state and federal venues, including FERC, Department of Energy, Congress, National Conference of State Legislatures, Midwest Governors Association and others.
Conducted 25 siting meetings to seek public input for the PATH line in West Virginia. More than 2,400 people attended.
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To delay the need for new generation, AEP will promote energy efficiency and demand response programs in all 11 states to lower both the demand for power and the amount used.
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Reduce or offset 1,000 MW of demand through energy efficiency programs by the end of 2012.
Work with state governments to implement components of the American Recovery and Reinvestment Act of 2009 related to energy efficiency and demand response.
Reduce energy consumption by 2,250,000 MWh by the end of 2012.
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Conducted or began market studies in 10 of our 11 states. Increased staff dedicated to developing and implementing energy efficiency and demand response programs throughout the system. Identified 561 MW of the 1,000 MW demand reduction goal.
N/A (New Goal)
N/A (New Goal)
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Renewable energy standards (RES) are becoming
a popular tool for government to bring more renewable forms of energy into the market. A RES has been implemented in four of AEP’s 11 states, with virtually all others considering some kind of legislation. (New)
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Ensure that RESes are achievable and appropriate for the states where AEP operates. Participate in developing legislation at the federal level for a national RES.
Develop plans to meet individual state RES requirements.
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AEP has worked with the Obama administration regarding the development of a federal RES and expects to be involved as the discussion continues.
RES development plans are under way.
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As carbon capture technology becomes commercially available, there must be regulations in place that permit its safe long-term storage and that deal with long-term liability.
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Help shape legislation that creates a mechanism to fund long-term storage and limit liability.
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AEP has developed model legislation and started reviewing the costs of storage and potential for liability insurance.
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