Several issues will remain prominent for the foreseeable future – but few more so than climate change. AEP's climate change strategy and policy goals are outlined in the Climate Change section of this report.

AEP will continue to participate in national and international dialogues and will work with all interested parties to adopt a federal climate change policy that adheres to our principles. We support federal legislation as opposed to state or regional regulation for several reasons. Climate change is a global issue and the nation can only play an effective role with a national approach; one set of regulations is the most efficient way to address the issue; and a nationwide policy will create economies of scale to best facilitate a greenhouse gas allowance cap-and-trade program.

AEP, the International Brotherhood of Electrical Workers and the AFL-CIO support a provision in federal climate legislation that would require other nations – such as China and India – to buy international allowances if they export to the United States and have not taken comparable actions to reduce their greenhouse gas emissions. We strongly believe such a provision is important to protect and retain U.S. jobs by preventing a deployment of manufacturing overseas, where environmental costs could be avoided in non-participating countries.

Incentives and tax breaks for deploying advanced technologies and increasing renewable energy resources are also important federal priorities. AEP supports a long-term extension of the federal Production Tax Credit for renewable energy resources. We also continue to lobby for tax credits that encourage investments in advanced technologies such as carbon capture and storage and advanced coal technologies.

AEP supports development of a national interstate, extrahigh voltage (EHV) transmission system – similar to our interstate highway system. We believe the best way to develop this system is through federal encouragement and oversight. We believe an interstate transmission highway is imperative to our nation's energy future and we will work with the state and the federal government to advance this vision. Specifically, we advocate the federal government exercise jurisdiction over these EHV facilities (300 kV and higher), similar to how it regulates natural gas pipelines.