AEP advances its public position through the use of state and federal lobbyists, most of whom are full-time employees who have diverse backgrounds in the company. Many have worked in the operations of our companies and understand the physical as well as policy aspects of our operations. AEP has employee lobbyists in nearly every state in which we have a presence, as well as in Washington, D.C. Our lobbyists are part of our overall effort to represent AEP's interests and the interests of our customers.

At the state level, our lobbyists work on such issues as taxes, market structure, siting, eminent domain and state environmental initiatives. They also help manage cost recovery from a legislative perspective – working to ensure that cost recovery regulation is included in all new legislative mandates.

At the federal level, AEP tracks federal legislation through its Washington office as well as through the work of its primary trade associations, including the Edison Electric Institute and the Nuclear Energy Institute. AEP works with all of the members of the congressional delegations that represent its service territory, as well as with relevant committee members from outside the service area.

With the passage of new federal ethics legislation, AEP is reviewing and updating all of its data collection systems to ensure compliance with enhanced registration and reporting requirements for lobbyists. In 2007, AEP spent approximately $1.7 million to lobby on energy legislation and tax credits.