In 2003 AEP became a founding member of the Chicago Climate Exchange (CCX), the first voluntary GHG
credit trading system in the United States. We committed to reduce or offset GHG
emissions by 1 percent in 2003, 2 percent in 2004, 3 percent in 2005 and 4 percent
in 2006 below baseline emission levels (an average of 1998-2001 annual emissions).
These reductions are cumulative and are adjusted to account for divestitures, acquisitions
or retirements of older power plants. In 2005, we announced we would extend our
CCX commitment to achieve further reductions or offsets in emissions during 2007-2010,
reaching an annual target of 6 percent by 2010. CCX allows for flexible, cost-effective
compliance with these targets by facilitating emissions trading (buying and selling
of emission allowances) and banking of emission reductions (i.e., saving excess
reductions in one year to use in a later year).
Today, AEP's adjusted carbon emissions baseline is 155 million metric tons. The
total cumulative CO2 equivalent reduction requirement to meet the CCX commitment
is approximately 46 million metric tons by 2010. Through 2006 we have achieved approximately
31 million metric tons in reductions, so we are well on our way to reaching our
target.
We monitor our CO2 emissions through Continuous Emission Monitors (CEMs) and report
them to the U.S. Environmental Protection
Agency. Under our participation in CCX, very detailed measurement protocols
have been developed that ensure the veracity of the reductions and offsets. These
emission reports are audited by the NASD,
which is the auditor of CCX. Our emissions also are registered and monitored through
our participation in the EPA's
Climate Leaders program. We anticipate using similar protocols to monitor
and verify offsets in the future.
To meet our CCX obligation, we have taken a variety of actions. These include:
- Improving the efficiency of existing power plants to reduce CO2 emissions
per net kilowatt hour;
- Adding wind generation to our system, focused on our western states, to displace
the use of fossil fuel generation;
- Improving the availability and increasing generation from our Donald C. Cook nuclear power plant, which achieved record generation
levels during 2004 and 2005;
- Retiring older and less efficient gas steam units in AEP's western region and two
coal units in our eastern region;
- Substantially reducing the leakage rate of sulfur hexafluoride (SF6), a potent GHG,
from transformers by approximately 90 percent; and
-
Conserving trees and reforesting lands in the United States and internationally.
- IRRC Greenhouse
Gas Profile (PDF: 57 KB : get
viewer)
- Carbon Disclosure
Project (PDF: 44 KB : get viewer)
