American Electric Power

American Electric Power
Public
Traded as NYSE: AEP
DJUA Component
S&P 500 Component
Industry Electric utilities
Predecessor Originally American Gas and Electric Company (AG&E), formed in 1906 from Electric Company of America. Became American Electric Power in 1958; merged with Central and Southwest Corporation in 2000.
Founded 1906
Headquarters Columbus, Ohio, U.S.
Area served
 AEP Ohio: Ohio
AEP Texas: Texas
Appalachian Power: Tennessee, Virginia, West Virginia
Indiana Michigan Power: Indiana, Michigan
Kentucky Power: Kentucky
PSO: Oklahoma
SWEPCO: Arkansas, Louisiana, Texas
Key people
 Nick Akins
(President and CEO) Rashawnda Scott
Products Electricity generation
Electric power transmission
distribution
Revenue
  • Increase US$ 15.357 billion (2013) [1]
  • Decrease US$ 14.945 billion (2012) [1]
  • Increase US$ 2.855 billion (2013) [1]
  • Decrease US$ 2.656 billion (2012) [1]
  • Increase US$ 1.48 billion (2013) [1]
  • Decrease US$ 1.259 billion (2012) [1]
Total assets
  • Increase US$ 56.414 billion (2013) [2]
  • Increase US$ 54.367 billion (2012) [1]
Total equity
  • Increase US$ 16.086 billion (2013) [2]
  • Increase US$ 15.237 billion (2012) [2]
Number of employees
 18,710 (Dec 2011)[3]
Website www.AEP.com

American Electric Power (AEP) is a major investor-owned electric utility in the United States, delivering electricity to more than 5 million customers in 11 states.

AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile (63,000 km)-network that includes 765 kilovolt ultra-high voltage transmission lines, more than all other U.S. transmission systems combined.[4] AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in Electric Reliability Council of Texas, the transmission system that covers much of Texas.

AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia, and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.

American Electric Power was the first utility to utilize 345 kV transmission lines which took place in 1953.

AEP has come under criticism in many of the states they operate in for attacking rooftop solar. They have specifically attempted to halt distributed solar in Louisiana, Arkansas, Oklahoma, West Virginia, Indiana, Kentucky, and Ohio.[5][6]

1 Riverside Plaza
AEP headquarters in Columbus, Ohio

Subsidiaries

The company is divided into seven major geographic local operating companies:

AEP Ohio

AEP Ohio serves 1.5 million customers in central, southern and northwestern Ohio. For years, it consisted of two operating companies, Ohio Power and Columbus Southern Power. However, in 2014, Columbus Southern was merged into Ohio Power, leaving Ohio Power as the legal operating company for regulatory purposes.

AEP Texas

AEP Texas was formed from a merger of various predecessor utilities, and joined AEP as part of its acquisition of Central and South West Corporation in 1997. It consists of AEP Texas North Company (formerly West Texas Utilities), which operates in west Texas, and AEP Texas Central Company (formerly Central Power and Light), which operates in south Texas.[7][8]

Appalachian Power

Appalachian power is based in Charleston, West Virginia and owns the naming rights to Appalachian Power Park in Charleston. AP serves about 1 million customers in parts of central and Southern West Virginia, Southwest Virginia and parts of Northeast Tennessee, specifically Kingsport. Cities in the Appalachian Power service territory include Charleston and Huntington, West Virginia; Roanoke, Virginia and Kingsport.

Until the 21st century, AEP's operations in Tennessee were part of a separate operating company, Kingsport Power Company. However, since the turn of the millennium, Kingsport Power's operations have been almost completely merged with those of Appalachian Power, and AEP considers Appalachian Power to be the operating company in the Kingsport area. While Kingsport Power still legally exists, the Kingsport Power name is almost never used anymore except for regulatory formality.

Wheeling Power, based in Wheeling, West Virginia; was long treated as a de facto part of Ohio Power, but is now reckoned as part of Appalachian Power.

In 2015, AEP backed HB 2201, legislation that would eliminate solar leasing throughout West Virginia. Rooftop solar leasing gives more consumers the opportunity to adopt solar energy, by making initial rooftop solar costs less expensive. The spread of distributed rooftop solar is seen as a threat to AEP's current monopoly status.[9]

Indiana Michigan Power

Indiana Michigan Power serves northeastern and east central Indiana, including Muncie and Fort Wayne; and parts of north central Indiana and southwest Michigan, including South Bend, St. Joseph, Benton Harbor and Three Rivers.

In 2015, AEP supported the utility bill HB 1320 in Indiana in an effort to halt rooftop solar in the state. The bill is designed to curtail the regulation of Indiana's oil and gas industry, as well as end consumer energy choice.[6]

Kentucky Power

Kentucky Power serves most of Eastern Kentucky, the area abutting the Appalachian Power service area, including communities of Pikeville, Hazard and Ashland. Kentucky Power is currently headquartered in Frankfort, Kentucky but announced on July 13, 2016 that they will be moving their state headquarters to Ashland, Kentucky by January 1, 2017. [10]

Public Service Company of Oklahoma (PSO)

PSO was one of the four CSW operating companies when CSW merged with AEP.[11] Incorporated in 1913, PSO serves approximately 540,000 customers in eastern and southwestern Oklahoma. Its headquarters are in Tulsa. PSO has 4,269 megawatts of generating capacity and provides electricity to 232 cities and towns across a service area encompassing 30,000 square miles.[12]

In April, 2014, Oklahoma Governor Mary Fallin signed into law an AEP-backed bill that would add a tax onto anyone in the state who adopted rooftop solar.[13] This anti-solar legislation was headed by Rep. Mike Turner (Oklahoma politician) (R. Edmond), known for both his support of ending rooftop solar and legislation he introduced to end all marriage in the state. After partnering with AEP to pass the legislation, Rep. Turner suffered a failed federal congressional race.[14]

Southwestern Electric Power Company

Often called SWEPCO, the Southwestern Electric Power Company serves most of western Arkansas, northwestern Louisiana, and northeastern Texas. Like PSO, it was one of the four CSW Operating Companies.[11]

Between 2013 and 2014, AEP, under subsidiary SWEPCO, tried to eliminate a fundamental solar policy, net metering, at the LPSC several times, and failed each time. SWEPCO also backed openly anti-solar candidate Eric Skrmetta, who has been widely criticized for receiving 2/3 of his campaign contributions from entities he regulates.[15]

In Arkansas, SWEPCO is expected in 2015 to ask regulators to allow them to pass along the costs of building and running the John W. Turk Jr. Coal Plant, the most expensive project in state history, to Arkansas ratepayers. This process is expected to elicit similar controversy to what has plagued the plant since construction.[16]

Other subsidiaries

AEP also bought much of the town of Cheshire, Ohio, where the Gavin Power Plant is located, due to pollution issues.[17] In 2004, AEP announced their plans to build one, or more, integrated gasification combined cycle (IGCC) coal-fired power plant which is expected to reduce emissions while providing additional electricity capacity to the customers served by AEP.[18]

The company also operates its own inland barge line, AEP River Operations (formerly MEMCO Barge Line), and owns major tracts of land throughout its service areas.

In August 2008, AEP has formed a joint venture company with Duke Energy to build and own new electric transmission assets.[19]

It is the largest shareholder in the Ohio Valley Electric Corporation (OVEC). OVEC is an associate company of AEP, not a subsidiary, because AEP owns less than half of it.

Nuclear

AEP owns and operates the Donald C. Cook nuclear power plant. This accounts for 6% of the generation portfolio.

Hybrid technology

AEP is expanding its green efforts to include 18 more International DuraStar hybrid diesel trucks.[20] AEP is also teaming with Ford for the integration of a Vehicle-To-Power grid communication system, which allows hybrid vehicles to communicate with power companies to determine where, how long, and what it would cost to re-charge a hybrid during travel.[21]

Solar and wind energy

AEP recently signed a deal with Wyandot Solar LLC to purchase power from one of the largest solar fields in the eastern United States of America, based in Upper Sandusky, Ohio.[22]

AEP owns and operates the Desert Sky Wind Farm and the Trent Wind Farm.[23]

In 2009, AEP partnered with other energy companies in commissioning a study of how to transmit wind energy generated in the Upper Midwest to consumers in the East.[24]

AEP currently gets .02% of its energy from renewable energy resources like wind and solar.[25] They are planning to increase their reliance on coal in the next five years.[26] They occasionally support renewable energy in their utility territories, but only when they can own it through their regulated assets.

PATH Proposal

In 2007, AEP has teamed with Allegheny Energy to propose the US$1.8 billion,[27][28] and changed to US$2.1 billion in 2011,[29] Potomac-Appalachian Transmission Highline, a 290 miles (470 km), 765 kilovolt transmission line that would run through West Virginia, Virginia, and Maryland. According to Joe Denault, a volunteer spokesperson for the proposal, the PATH proposal would incorporate new technology to reduce carbon dioxide emissions by 380,000 short tons (340,000 t) a year; allow for the transmission of renewable energy sources, such as wind, solar, and hydroelectric; and generate 5,700 jobs, with $420 million in employee compensation annually.[30] However, many of these claims are disputed[31] and the proposal must pass several legal hurdles before moving forward.[32] On August 24, 2012, PJM Interconnection officially removed the PATH project from its long-range expansion plans, citing a slow economy for reducing the projected growth in electricity use.[33]

History

The American Gas and Electric Company, which would be renamed American Electric Power in 1958, was incorporated in 1906.[34] It replaced Electric Company of America, a holding company that had existed since 1899. It built "the first plant in the world to reheat steam to do double duty in the process of generating electricity"[34] at Philo, Ohio in 1923. Several of its holdings were divested following the passage of the Public Utility Holding Company Act in 1935; these holdings would include Atlantic City Electric (now a subsidiary of Pepco Holdings) and Scranton Electric (since absorbed by PPL).[35] However, it retained its Central System, which ran between Michigan and Virginia. It moved its headquarters from New York City to Columbus, Ohio in the 1980s. On May 1, 1999, The North American electric power industry tested and cleared 75 percent of the U.S. electricity system for compliance with the Year 2000 computer glitch.[36] On August 31, 2004, American Electric Power Company's $10 billion acquisition of the Central and South West Corporation was approved.[37]

Acquisitions

Environmental record

The Political Economy Research Institute ranks American Electric Power 45th among corporations emitting airborne pollutants in the United States. The ranking is based on the quantity (91,000,000 pounds (41,000 t) in 2005) and toxicity of the emissions.[39] Major pollutants include sulfuric and hydrochloric acids, and chromium, manganese and nickel compounds.[40] Overall, electric power plants, such as those operated by AEP, account for almost "70 percent of sulfur dioxide emissions each year and 30 percent of nitrogen oxides emissions." Individually, these pollutants cause serious respiratory damage and other illnesses; when combined, they create what's known as acid rain, which causes long term damage to the environment and deterioration of natural and man-made structures.[41] Environmental Protection Agency has named American Electric a potentially responsible party at the Green River Disposal Inc. Superfund toxic waste site.[42]

Justice Department lawsuit

The United States Justice Department filed a lawsuit on November 3, 1999, against AEP and six other companies for violating the Clean Air Act. On October 8, 2007, AEP agreed to install US$4.6 billion in equipment to reduce emission, as well as pay a US$15 million civil fine and provide US$36 million for environmental projects and $24 million for environmental mitigation.[43][44] The company will cut 813,000 short tons (738,000 t) of air pollutants annually once all of the controls are installed.[45] According to the press release, the agreement imposes caps on emissions of pollutants from 16 plants located in five states. The facilities are located in Moundsville (two facilities), St. Albans, Glasgow, and New Haven (two facilities), West Virginia; Louisa, Kentucky; Glen Lyn and Carbo, Virginia; Brilliant, Conesville, Cheshire, Lockbourne, and Beverly, Ohio; and Rockport and Lawrenceburg, Indiana.

Political influence

AEP's political action committee, the American Electric Power Committee for Responsible Government, has increased spending since the 1998 election cycle, reaching $1.4 million in contributions in 2007-2008, 57 percent to Republicans.[46] Also in 2008, American Electric Power significantly increased lobbying expenditures from less than $2 million a year to over $11 million, as climate legislation became a key issue in Washington. As of December 2011, lobbying expenses remained between $6 million and $10 million per year.[47]

In 2009, AEP CEO Michael G. Morris contributed $100,000 to Newt Gingrich's American Solutions for Winning the Future, which supports increased oil drilling and opposes mandatory limits on greenhouse gas pollution.[48] American Electric Power is also a member of the American Coalition for Clean Coal Electricity, a lobbying and marketing organization which opposes President Obama's climate and clean energy legislation.[49]

Paul Loeffelman, AEP director of environmental public policy, served as co-chair of the ALEC Energy, Environment, and Agriculture task force, which in 2012 adopted model legislation entitled the "Electricity Freedom Act", designed to repeal state-level mandates requiring electric utilities to produce some of their electricity from renewable sources.[50] In 2013, ALEC-affiliated legislators introduced bills in 13 states designed to weaken or repeal renewable energy mandates. None of the bills passed in 2013.[51]

References

  1. 1 2 3 4 5 6 7 "AMERICAN ELECTRIC POWER CO INC 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 25, 2014.
  2. 1 2 3 "AMERICAN ELECTRIC POWER CO INC 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. April 25, 2014.
  3. ↑ "American Electric Power, Form 10-K, Annual Report, Filing Date Feb 28, 2012". secdatabase.com. Retrieved Jan 6, 2013.
  4. ↑ "American Electric Power, Form 8-K, Current Report, Filing Date Oct 24, 2012" (PDF). secdatabase.com. Retrieved Jan 6, 2013.
  5. ↑ "Charles Trump Sides With Power Companies Against Solar". Morgan County USA. Retrieved February 18, 2015.
  6. 1 2 "Solar-Killing Bill Boosts Indiana Lawmaker's Financial Interests". CleanTechnica. Retrieved February 18, 2015.
  7. ↑ "AEP Texas Facts". AEP Texas. Retrieved May 29, 2012.
  8. ↑ "CSW Electric". Archived from the original on 9 January 1997. Retrieved 26 September 2015.
  9. ↑ "West Virginia's monopoly utilities launch a two-pronged attack on rooftop solar". The Fayette Tribune. Retrieved February 18, 2015.
  10. ↑ Kentucky Power Returning Headquarters to Ashland
  11. 1 2 "Order Authorizing Acquisition of Registered Holding Company and Related Transactions; Approving Amended Service Agreements; and Denying Requests for Hearing". United States Securities and Exchange Commission. June 14, 2000. Retrieved May 29, 2012. CSW has four wholly owned operating subsidiaries (together, the "CSW Operating Companies"): Central Power and Light Company ("CP&L"), serving portions of southern Texas; Public Service Company of Oklahoma ("PSO"), serving portions of eastern and southwestern Oklahoma; Southwestern Electric Power Company ("SWEPCO"), serving portions of North Texas, western Arkansas and northwestern Louisiana, and West Texas Utilities Company ("WTU"), serving portions of west-central Texas.
  12. ↑ "Facts, Figures & Bios". Retrieved 26 September 2015.
  13. ↑ "Okla. Utilities Hit Homes Using Solar With Extra Fee". ClimateCentral. Retrieved February 18, 2015.
  14. ↑ "News9: Oklahoma lawmakers consider preventing ALL marriage to keep same-sex marriage illegal". NewsOK. Retrieved February 18, 2015.
  15. ↑ "Louisiana utility regulators got two-thirds of their campaign cash from industries they oversee". NOLA. Retrieved February 18, 2015.
  16. ↑ "SWEPCO Says Legal Challenges Turk Plant Settled". Arkansas Online. Retrieved March 12, 2015.
  17. ↑ http://www.ens-newswire.com/ens/apr2002/2002-04-19-06.asp
  18. ↑ "American Electric Power, Form 8-K, Current Report, Filing Date Aug 31, 2004". secdatabase.com. Retrieved Jan 6, 2013.
  19. ↑ "AEP And Duke To Form Joint Venture To Build Transmission". Taume. August 12, 2008. Archived from the original on February 16, 2012.
  20. ↑ "Electric Drive Transportation Association". Retrieved 26 September 2015.
  21. ↑ "Ford Unveils Vehicle-to-Power Grid Communication System", All Cars Electric, Retrieved September 12, 2009.
  22. ↑ "German company to build area's largest solar field in Wyandot County", Toledo Blade, Retrieved September 12, 2009.
  23. ↑ http://www.aep.com/environmental/education/wind/generating.aspx
  24. ↑ AEP, "MidAmerican Transmission Joint Venture Sponsors Study of Transmission Options to Transport Renewable Energy Across Upper Midwest", American Electric Power, Retrieved September 12, 2009.
  25. ↑ "Energy Profile". EIA. Retrieved February 18, 2015.
  26. ↑ "AEP puts more emphasis on coal in revised energy portfolio forecast". Columbus Business Journal. Retrieved February 18, 2015.
  27. ↑ "American Electric Power, Form 10-Q, Quarterly Report, Filing Date Nov 2, 2007". secdatabase.com. Retrieved Jan 6, 2013.
  28. ↑ "Allegheny Energy, Form 10-K, Annual Report, Filing Date Feb 23, 2011" (PDF). secdatabase.com. Retrieved Jan 6, 2013.
  29. ↑ "American Electric Power, Form DEF 14A, Filing Date Mar 14, 2011" (PDF). secdatabase.com. Retrieved Jan 6, 2013.
  30. ↑ "Putnam Rotary Club learns about PATH project", The Putnam Standard. Retrieved September 12, 2009.
  31. ↑ "Frequently Asked Questions". Stop PATH WV, Inc. Retrieved Aug 9, 2013.
  32. ↑ "StopPATH WV to host landowners’ meeting"
  33. ↑ "Jersey Central Power Light, Form 10-Q, Quarterly Report, Filing Date Dec 11, 2012" (PDF). secdatabase.com. Retrieved Jan 6, 2013.
  34. 1 2 "History of AEP". www.aep.com. Retrieved May 29, 2012.
  35. ↑ "American Electric Power Co., Inc.". Retrieved 26 September 2015.
  36. ↑ "BUSINESS NEWS IN BRIEF".
  37. ↑ Bellafante, Ginia. "S.E.C. TO REVIEW AMERICAN ELECTRIC POWER MERGER". The New York Times.
  38. ↑ "American Electric Power, Form 8-K, Current Report, Filing Date Jun 16, 2000". secdatabase.com. Retrieved Jan 6, 2013.
  39. ↑ Political Economy Research Institute Toxic 100 2008 retrieved September 1, 2008
  40. ↑ Toxics Release Inventory courtesy rtknet.org
  41. ↑ "#090: 03-01-00 U.S. EXPANDS CLEAN AIR ACT LAWSUITS AGAINST ELECTRIC UTILITIES". Retrieved 26 September 2015.
  42. ↑ EPA database courtesy Center for Public Integrity
  43. ↑ "American Electric Power, Form 8-K, Current Report, Filing Date Oct 9, 2007" (PDF). secdatabase.com. Retrieved Jan 6, 2013.
  44. ↑ "Sources: $4.6 billion settlement in power plant air pollution case - CNN.com". CNN. October 8, 2007.
  45. ↑ "U.S. ANNOUNCES LARGEST SINGLE ENVIRONMENTAL SETTLEMENT IN HISTORY" (Press release). US EPS. October 9, 2007. Retrieved October 9, 2007.
  46. ↑ AEP PAC contributions, 2008, OpenSecrets
  47. ↑ American Electric Power lobbying, OpenSecrets
  48. ↑ ASWF 527 form, IRS
  49. ↑ ACCCE Members, ACCCE
  50. ↑ "Energy, Environment, and Agriculture". American Legislative Exchange Council (ALEC). Retrieved 2013-08-09.
  51. ↑ Matt Kasper (Aug 8, 2013). "How A Powerful Group Of Corporations Quietly Tried To Roll Back Clean Energy Standards". Climate Progress. Retrieved 2013-08-09.

External links

Coordinates: 39°57′55″N 83°00′18″W / 39.9652°N 83.0051°W / 39.9652; -83.0051

This article is issued from Wikipedia - version of the 11/16/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.