Although greenhouse gases are not regulated in the United States, AEP is undertaking voluntary initiatives to reduce emissions of greenhouse gases from its operations. The company is doing so with the intent of building a base of operational experience with greenhouse gas emission reduction techniques and technologies, demonstrating viable public policy instruments to promote flexibility and cost-effectiveness, and exemplifying AEP’s commitment to going beyond compliance.

AEP is a founding member of the Chicago Climate Exchange (CCX), the first voluntary, legally binding greenhouse gas emissions reduction and trading program in North America. Through this affiliation, AEP committed -- beginning in 2003 -- to reduce or offset its greenhouse gas emissions from an established baseline each year through 2010. With this new commitment, AEP expects to reduce or offset approximately 46 million metric tons of carbon dioxide (CO2) equivalent emissions between 2003 and 2010 and has already achieved 39 million metric tons in reductions.

In November 2003, American Electric Power joined Climate Leaders, tthe U.S. Environmental Protection Agency’s voluntary government/industry partnership in which companies develop long-term, comprehensive climate change strategies. AEP’s previously announced voluntary commitment to reduce or offset its greenhouse gas emissions four percent by 2006 served as the company’s initial reduction goal in the U.S. EPA Climate Leaders program. The company worked with U.S. EPA to develop a post-2006 emissions control commitment of six percent by 2010.

Partnering companies in the Climate Leaders program set a corporate-wide greenhouse gas (GHG) reduction goal and inventory their emissions to measure progress. By reporting inventory data to EPA, partners create a lasting record of their accomplishments. Partners also identify themselves as corporate environmental leaders and strategically position themselves as climate change policy continues to unfold.

AEP has also sequestered substantial amounts of CO2 emissions through forestry projects. We invested in a project to save an ecologically diverse forest region in Bolivia - - the world’s largest such project - - and have facilitated similar projects in Brazil.  In addition, we have reforested more than 23,000 acres of company-owned land by planting more than 63 million trees.

AEP has partnered with the U.S. Fish and Wildlife Service and The Conservation Fund in restoring bottomland hardwood forests in the Lower Mississippi River Valley.  One such project is near the Catahoula National Wildlife Refugee located in Louisiana.  This project involved the purchase of over 18,000 acres and the planting of approximately three million bottomland hardwood seedlings on over 9,780 acres.  This area will offer much-needed habitat to waterfowl, shorebirds and neotropical migratory birds, as well as white-tail deer, cottontail rabbit, river otter and many other species. 

AEP has a major involvement in UtiliTree Carbon Company, a nonprofit organization comprised of 40 U.S. electric utilities dedicated to providing funding and oversight for forestry projects which capture and store carbon dioxide.  UtiliTree projects in Louisiana, California, Oregon, Belize and Malaysia include rural tree planting, forest preservation and forest management.

PowerTree Carbon Company LLC, the predecessor to UtiliTree, is also a voluntary consortium of 25 leading U.S. power companies, and has established a multi-million dollar fund to undertake six bottomland hardwood reforestation projects in Louisiana, Mississippi and Arkansas. These projects will help return this now marginal agricultural land to a fully thriving ecosystem.

Through these projects, AEP has also funded development of new technologies for accurately monitoring and verifying the carbon absorbed by forests.