Water and energy production are fundamentally related from an environmental perspective — we need water to make electricity (10.5 billion gallons per day at AEP), and we need energy to sanitize and purify water. As with all aspects of the environment, compliance with water quality permits and other regulations is the foundation of our water programs, but we are increasingly focused on water use management. Although most of the water we withdraw is returned to its source, we are beginning to look beyond compliance to a total water management approach.

We formed a task force late last year to review AEP's water use and the impacts we have on water resources. We will review water balances at our power plants to identify savings opportunities. Water is an increasingly valuable resource for our business, for the communities in which we operate and for the environment. We believe that we must be more vigilant about how we manage it.

Although we need more than 10 billion gallons of water a day to produce electricity, most of it goes through a once-through system and is returned to the source. The U.S. EPA continues to develop regulations under Section 316(b) of the Clean Water Act to establish national performance requirements for once-through power plant cooling water systems. These regulations are designed to protect fish and other aquatic organisms that come in contact with water intakes, which often take in more than two million gallons per minute. The U.S. Supreme Court recently ruled that the EPA could consider costs as well as benefits of compliance in setting the new rule.

AEP owns and operates 18 power plants that would be affected by changes to this rule. One approach being considered — a requirement to install cooling towers at these plants so that water can be recycled — would reduce plant efficiency and actually increase water consumption. We are talking with the U.S. EPA to help ensure that all implications and unintended consequences are considered.

Underground carbon storage is a key component of advanced coal technology, and we must ensure that it does not contaminate drinking water resources. The EPA will regulate the storage of CO₂ by adding a new category of injection wells to the Safe Drinking Water Act regulations and creating extensive siting, testing and monitoring requirements to prevent leaks.

Carbon dioxide in water is not necessarily a problem — think of the carbonation in soda — but too much can turn water slightly acidic and allow other heavy metals and toxic substances to leach into the water supply more easily. Carbon dioxide will be separated from drinking water aquifers by many thousands of feet. Typically, drinking water supplies are only a few hundred feet deep in the Midwest, whereas injection of CO₂ would take place at depths of more than 8,000 feet. In addition, a variety of safety steps will be incorporated to protect drinking water.

Although underground carbon storage represents new territory for regulators and for utilities, natural gas has been safely and effectively stored underground for decades. Scientific evidence shows the same can be true for CO₂. West Virginia has issued a draft permit for CO₂ underground injection wells at our Mountaineer Plant, and we anticipate receiving a final permit and beginning injection operations in September 2009.

Water used for Processing, cooling & consumption

Water Balance Charts

AEP employees conduct frequent water sampling and analysis to monitor water quality at our power plants.