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| Type | Public |
|---|---|
| Traded as | NYSE: AEP S&P 500 Component |
| Industry | Electric utilities |
| Predecessor(s) | 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, West Virginia 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) |
| Products | Electricity generation Electric power transmission distribution |
| Revenue |  US$15.116 billion (2011)[1] |
| Operating income | US$2.782 billion (2011)[1] |
| Net income | US$1.949 billion (2011)[1] |
| Total assets | US$ 52.223 billion (2011)[1] |
| Total equity | US$14.664 billion (2011)[1] |
| Employees | 18,710 (Dec 2011)[1] |
| Website | www.AEP.com |
American Electric Power is a major investor-owner 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.[2] 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 ERCOT, 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.
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[edit] Overview
AEP headquarters in Columbus, Ohio
[edit] Subsidiaries
The company is divided into seven major geographic local operating companies:
[edit] AEP Ohio
It is made up of the former Ohio Power and Columbus Southern Power. Wheeling Electric Power (serving Wheeling, West Virginia) is operated as a de facto part of AEP Ohio.
[edit] 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.[3][4]
[edit] Appalachian Power
It is based in Charleston, West Virginia and owns the rights to Appalachian Power Park in Charleston. AP serves about 1 million customers in its territory, which includes parts of central and Southern West Virginia, Southwest Virginia and parts of Northeast Tennessee, specifically Kingsport.
Appalachian's Tennessee operations are technically and legally considered to be that of the Kingsport Power Company. The Kingsport Power name is rarely used anymore and is more for just regulatory formality, as AEP considers Appalachian Power to be the operating company in Tennessee.
[edit] Indiana Michigan Power
Indiana Michigan Power has two service areas. Most of northeast Indiana including Muncie and Fort Wayne, and parts of north central Indiana and southwest Michigan, including South Bend, St. Joseph, and Three Rivers.
[edit] Kentucky Power
Kentucky Power serves most of northeastern Kentucky, the area abuting the Appalachian Power service area.
[edit] Public Service Company of Oklahoma (PSO)
PSO was one of the four CSW Operating Companies when CSW merged with AEP.[5]
[edit] Southwestern Electric Power Company
Often called SWEPCO, the Southwestern Electric Power Company serves Arkansas, Louisiana, and eastern Texas. Like PSO, it was one of the four CSW Operating Companies.[5]
[edit] Other subsidiaries
AEP also bought much of the town of Cheshire, Ohio, where the Gavin Power Plant is located, due to pollution issues.[6]
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.[7]
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.[8]
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.
[edit] Coal
AEP owns and operates the 1300 MW General Gavin Power Station. Coal plants account for 66% of the AEP generation portfolio.
[edit] Nuclear
AEP owns and operates the Donald C. Cook nuclear power plant. This accounts for 6% of the generation portfolio.
[edit] Hybrid technology
AEP is expanding its green efforts to include 18 more International DuraStar hybrid diesel trucks.[9] 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.[10]
[edit] Solar and wind energy
AEP recently[when?] signed a deal with Wyandot Solar LLC to purchase power from one of the largest solar fields in the eastern United States, based in Upper Sandusky, Ohio.[11]
AEP owns and operates the Desert Sky Wind Farm and the Trent Wind Farm.[12]
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.[13]
[edit] PATH Proposal
In 2007, AEP has teamed with Allegheny Energy to propose the US$1.8 billion,[14][15] and changed to US$2.1 billion in 2011,[16] 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.[17] However, many of these claims are disputed[18] and the proposal must pass several legal hurdles before moving forward.[19] 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.[20]
[edit] History
The American Gas and Electric Company, which would be renamed American Electric Power in 1958, was incorporated in 1906.[21] 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"[21] at Philo, Ohio in 1923. Several of its holdings were divested following the passage of the Public Utility Holding Company Act in 1935. 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.
[edit] Acquisitions
- 1922 Indiana and Michigan Electric
- 1924 American Electric Power Company, a Philadelphia holding company
- 1925 Appalachian Power Company
- 1948 Indiana Service Corporation of Fort Wayne
- 1980 Columbus and Southern Ohio Electric Company
- 1997 Central and South West Corporation (completed in 2000)[22]
[edit] 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.[23] Major pollutants include sulfuric and hydrochloric acid, and chromium, manganese and nickel compounds.[24] 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.[25] Environmental Protection Agency has named American Electric a potentially responsible party at the Green River Disposal Inc. Superfund toxic waste site.[26]
[edit] 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.[27][28] The company will cut 813,000 short tons (738,000 t) of air pollutants annually once all of the controls are installed.[29] 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.
[edit] 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.[30] 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.[31]
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.[32] 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.[33]
[edit] Criticism
In December 2011, the non-partisan organization Public Campaign criticized American Electric Power for spending $28.85 million on lobbying[34] and not paying any taxes during 2008-2010, instead getting $545 million in tax rebates, despite making a profit of $5.9 billion, laying off 2,600 workers since 2008, and increasing executive pay by 30% to $23.7 million in 2010 for its top five executives.[35]
[edit] References
- ^ a b c d e f "American Electric Power, Form 10-K, Annual Report, Filing Date Feb 28, 2012". secdatabase.com. Retrieved Jan 6, 2013.
- ^ "American Electric Power, Form 8-K, Current Report, Filing Date Oct 24, 2012". secdatabase.com. Retrieved Jan 6, 2013.
- ^ "AEP Texas Facts". AEP Texas. Retrieved May 29, 2012.
- ^ Map of former CSW service territory
- ^ a b "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."
- ^ http://www.ens-newswire.com/ens/apr2002/2002-04-19-06.asp
- ^ "American Electric Power, Form 8-K, Current Report, Filing Date Aug 31, 2004". secdatabase.com. Retrieved Jan 6, 2013.
- ^ "AEP And Duke To Form Joint Venture To Build Transmission". Taume News. August 12, 2008. Retrieved August 12, 2008.
- ^ Electric Drive Transportation Association
- ^ "Ford Unveils Vehicle-to-Power Grid Communication System", All Cars Electric, Retrieved September 12, 2009.
- ^ "German company to build area's largest solar field in Wyandot County", Toledo Blade, Retrieved September 12, 2009.
- ^ http://www.aep.com/environmental/education/wind/generating.aspx
- ^ AEP, "MidAmerican Transmission Joint Venture Sponsors Study of Transmission Options to Transport Renewable Energy Across Upper Midwest", American Electric Power, Retrieved September 12, 2009.
- ^ "American Electric Power, Form 10-Q, Quarterly Report, Filing Date Nov 2, 2007". secdatabase.com. Retrieved Jan 6, 2013.
- ^ "Allegheny Energy, Form 10-K, Annual Report, Filing Date Feb 23, 2011". secdatabase.com. Retrieved Jan 6, 2013.
- ^ "American Electric Power, Form DEF 14A, Filing Date Mar 14, 2011". secdatabase.com. Retrieved Jan 6, 2013.
- ^ "Putnam Rotary Club learns about PATH project", The Putnam Standard. Retrieved September 12, 2009.
- ^ "Frequently Asked Questions"
- ^ "StopPATH WV to host landowners’ meeting"
- ^ "Jersey Central Power Light, Form 10-Q, Quarterly Report, Filing Date Dec 11, 2012". secdatabase.com. Retrieved Jan 6, 2013.
- ^ a b "History of AEP". www.aep.com. Retrieved May 29, 2012.
- ^ "American Electric Power, Form 8-K, Current Report, Filing Date Jun 16, 2000". secdatabase.com. Retrieved Jan 6, 2013.
- ^ Political Economy Research Institute Toxic 100 2008 retrieved September 1, 2008
- ^ Toxics Release Inventory courtesy rtknet.org
- ^ #090: 03-01-00 U.S. EXPANDS CLEAN AIR ACT LAWSUITS AGAINST ELECTRIC UTILITIES
- ^ EPA database courtesy Center for Public Integrity
- ^ "American Electric Power, Form 8-K, Current Report, Filing Date Oct 9, 2007". secdatabase.com. Retrieved Jan 6, 2013.
- ^ http://www.cnn.com/2007/US/law/10/08/pollution.suit.settlement/index.html
- ^ "U.S. ANNOUNCES LARGEST SINGLE ENVIRONMENTAL SETTLEMENT IN HISTORY" (Press release). US EPS. October 9, 2007. Retrieved October 9, 2007.
- ^ AEP PAC contributions, 2008, OpenSecrets
- ^ American Electric Power lobbying, OpenSecrets
- ^ ASWF 527 form, IRS
- ^ ACCCE Members, ACCCE
- ^ "Annual Lobbying by American Electric Power". Center for Responsive Politics. Retrieved December 26, 2011.
- ^ Portero, Ashley. "30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008-2010". International Business Times. Archived from the original on December 26, 2011. Retrieved December 26, 2011.
[edit] External links
Coordinates: 39°57′55″N 83°00′18″W / 39.9651533°N 83.0050942°W
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