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Checks & Balances on Our Envrionmental Compliance

To assess compliance and improve performance, AEP conducts environmental audits by checking records, inspecting facilities and observing work practices. The auditing team reports directly to the chairman and chief executive officer.

In 2008, we conducted audits at 10 utility operations centers, six sites within River Operations and 15 power plants. Examples of adverse findings include deficiencies in an above-ground storage tank management program, new construction activities, asbestos abatement and storm water permit compliance. We corrected these issues, implemented process controls to prevent their recurrence and shared audit results across the company. This year, we will begin unannounced plant audits to mimic unannounced visits from regulators. This will give us additional assurance that our compliance programs are strong and working effectively.

In addition to audits, we use MESH (Managing Environment, Safety and Health), our initiative to conform to the international environmental management system standard ISO 14001, to raise awareness and knowledge and drive continuous improvements. So far, 36 fossil and hydro facilities are in different stages of implementing various MESH elements, and four additional plants will begin implementation in 2009.

Coal

A conveyor transports gypsum from AEP’s Mitchell Plant to a nearby CertainTeed Corp. facility where it is used to make wallboard.

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