In 2007, AEP entered an agreement with an affiliate of Environmental Credit Corp.
(ECC) to purchase approximately 4.6 million carbon credits between 2010 and 2017
generated from capturing methane on livestock farms. (One carbon credit is equal
to one ton of carbon dioxide reduction.)
The agreement is part of the first large-scale livestock methane offset program
established in the United States. This program will capture and destroy methane
from approximately 400,000 head of livestock on as many as 200 U.S. farms.
According to the World Business Council for Sustainable Development (WBCSD), of
which AEP is a member, buildings currently use a third of the world’s energy and,
if current trends continue, they will be the main users of energy by 2025.
With more than 400 facilities in its system, AEP has a unique opportunity to demonstrate
the value and cost-effectiveness of green buildings, especially in an industrial-type
setting. As such, the company will invest approximately $100 million over
the next five years (2008-2013) to build new or update existing facilities, in accordance
with Leadership in Energy and Environmental Design (LEED) standards, as these opportunities
arise. Examples include:
- AEP has completed construction of its 83,500-square-foot Transmission Operations
Center at New Albany, Ohio, which meets LEED standards. The building provides
a 20 percent savings in reduced water usage and a 10 to 15 percent savings in energy
usage thanks to new, more efficient HVA design.
- AEP’s Indiana Michigan Power
operating unit will invest $2.2 million to renovate and upgrade its Decatur, Ind.,
service center. The interior will be designed to achieve a Silver Certification
under LEED.
- AEP will begin building a new service center in Rogers, Ark., that will meet LEED-Silver
standards for new construction.
- AEP plans energy audits at its other facilities
to evaluate where cost-effective energy efficiencies can be achieved or conservation
measures can be implemented. Annual goals will be established for lowering energy
consumption.
- The company will also establish design standards for new building construction that
meet LEED standards and, where feasible, will retrofit existing facilities.
In 2006 (the most recent complete data we have), AEP generated nearly 8.4 million
tons of coal ash products. Use of CCPs in 2006 resulted in approximately $18.6 million
in avoided costs that would otherwise have been incurred to build and operate landfills
for these byproducts. These savings fluctuate annually.
