From our power plants and distribution centers to the executive suite, we need a
diverse work force to stay competitive, to be sustainable and to succeed. We have
created short and long-range plans to attract, recruit, hire and retain a work force
of highly skilled individuals with a variety of perspectives from all cultures and
backgrounds.
Even though close to 40 percent of our hires and internal promotions in 2007 were
minorities and/or females, we continue to have difficulty achieving diversity targets
for engineering and power plant jobs. These challenges are the result of keen competition
for the dwindling number of skilled workers and the remote locations of many of
our facilities. We have expanded our outreach to include predominantly black colleges
and are working closely with recruiting firms that specialize in attracting females
and minorities. We also have developed a new "Adopt-a-School" program
to encourage minority and female students at younger ages to consider careers in
the power industry.
AEP's Diversity Council reflects our diverse work force and our commitment to diversity.
In addition to tracking compliance with affirmative action programs, the Council's
goals are to raise awareness of AEP's diversity, celebrate its many differences
and foster a culture of inclusion.
As we develop a more sustainable supply chain, AEP remains committed to having a
diverse supply base. In 2007, AEP spent $885 million doing business with small or
minority-owned companies; women-owned and veteran-owned businesses; small disadvantaged
businesses; and HUBzone and Service disabled businesses. This represents 19.5 percent
of the total amount spent on material and services, excluding fuels. While the overall
percentage compared with 2006 was down (from 21.2 percent), increases were gained
in the following areas: women-owned small businesses (from 1.7 percent to 2.0 percent);
and minorityowned businesses (from 0.4 percent to 0.6 percent).
The primary challenge is developing small and diverse suppliers who can support
the large capital projects that represent current growth in our business units.
