This report, made by AEP and each of its Registrant Subsidiaries (the “Registrants”), contains forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Many forward-looking statements appear in “Energy Transition,” but there are others throughout this document which may be identified by words such
as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue” and similar expressions, and include statements reflecting future results
or guidance and statements of outlook. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forwardlooking statements in this document are presented as of the date of this document. Except to the extent required by applicable law, management undertakes no obligation to
update or revise any forward-looking statement. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are:
• Changes in economic conditions, electric market demand and demographic patterns in AEP service territories.
• Volatility and disruptions in financial markets precipitated by any cause, including failure to make progress on federal budget or debt ceiling matters; particularly
developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt.
• The availability and cost of funds to finance working capital and capital needs, particularly if expected sources of capital, such as proceeds from the sale of assets,
subsidiaries or tax credits, do not materialize or do not materialize at the level anticipated, and (ii) during periods when the time lag between incurring costs and recovery
is long and the costs are material.
• The availability of fuel and necessary generation capacity and the performance of generation plants.
• The ability to recover fuel and other energy costs through regulated or competitive electric rates.
• The ability to transition from fossil generation and the ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any
necessary regulatory approvals and permits) when needed at acceptable prices and terms, including favorable tax treatment, and to recover those costs.
• New legislation, litigation or government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new
or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost
recovery and/or profitability of generation plants and related assets.
• The impact of federal tax legislation on results of operations, financial condition, cash flows or credit ratings.
• Timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation,
distribution and transmission service and environmental compliance.
• Changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation.
• The ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives.
• The impact of changing expectations and demands of customers, regulators, investors and stakeholders, including heightened emphasis on environmental, social and
governance concerns.
The forward-looking statements of the Registrants speak only as of the date of this report or as of the date they are made. The Registrants expressly disclaim any obligation to
update any forward-looking information, except as required by law.
We are pleased to share the latest progress on
American Electric Power’s sustainable business
practices, strategy, performance and impact.
The 2024 Corporate Sustainability Report, Our
Journey Forward, provides an overview of AEP’s
sustainable growth strategy, which is focused on
an affordable, reliable and just energy transition;
environmental compliance and stewardship;
employee well-being and engagement; social
justice and equity; and strong and effective
corporate governance. This report marks our 18th
year of providing a comprehensive view of AEP’s
progress as a business and community partner,
reflecting our longstanding commitment to
stakeholder engagement, transparency and longterm value creation. This report covers calendar
year 2023 unless otherwise noted.
Internal Assurance:
AEP Audit Services performed a limited review of selected performance
statements and disclosures within the 2024 AEP Corporate Sustainability
Report. Financial information was reconciled with AEP’s audited
financial statements and other sources as deemed appropriate.
Nonfinancial statements were substantiated with press releases, internal
communications, or source data from the business units. Forwardlooking information was verified as consistent with public information
disclosed by AEP. Based upon our limited review, we believe the
performance information contained within the report is appropriately
stated and that management adhered to the established processes in
accumulating the financial and nonfinancial information.
Board of Directors’ Statement:
AEP Management and the Board of Directors recognize the significant role sustainable business practices play in the company’s corporate purpose to create
long-term value for our investors and other stakeholders. We are committed to meaningful engagement and transparent disclosure about our business
performance. The company’s purpose, to deliver safe, reliable and affordable electricity to meet customers’ needs, is supported by its strategy for sustainable
growth.
The Board regularly engages with management to oversee the company’s sustainability efforts and disclosure. The Board requests and receives frequent
reports from management about the company’s sustainability initiatives and regularly discusses these issues including safety and health, human capital
management, climate-related risk, culture and inclusion, and cyber and physical security at Board meetings and Board committee meetings.
The AEP Board of Directors has assigned responsibility for overseeing the company’s sustainability initiatives and disclosures to the Board’s Committee on
Directors and Corporate Governance (the Committee). The 2024 Corporate Sustainability Report integrates financial with sustainability reporting to provide
a comprehensive view of AEP’s forward-looking strategic commitment to our customers, employees, investors and communities that we serve, as well as a
transparent review of our performance in these commonly recognized sustainability measures. Stakeholders have expressed support and appreciation for
AEP’s leadership with this integrated approach to corporate reporting, as well as the company’s commitment to transparency and engagement. The Committee
fully supports this approach.
The 2024 Corporate Sustainability Report provides cohesive, proactive disclosure for our stakeholders. AEP’s internal Audit Services team performs a
limited review of selected company performance statements within the Report. This year’s Report includes the company’s ESG Data Center, which houses
approximately 250 of the most relevant metrics AEP is commonly asked to disclose; and AEP’s strategic vision for long-term sustainable growth which is
focused on a reliable and affordable transition to a low-carbon economy for our customers and communities.
The Committee believes the 2024 Corporate Sustainability Report
provides a clear presentation of AEP’s strategy and performance.
The Board has emphasized that management will continue to be
evaluated by its success in executing the company’s strategic plan,
including its ability to respond to changing sustainability-related
risks and opportunities
About AEP:
At AEP, we are in the business of providing our customers with comfort and
convenience – all through the flip of a switch. Whether it’s keeping homes warm
during cold winter nights or electric vehicles charged and ready for the morning
commute, we are committed to delivering this essential service in a safe, reliable,
affordable and environmentally compliant manner.
Message from AEP’s President & CEO:
Dear Stakeholders,
It’s no secret that the electric utility industry is undergoing transformational change. What is not changing,
however, is our purpose to provide customers with safe, reliable and affordable electricity. Caring for our
customers requires working with regulators, policymakers, investors and other stakeholders at a time of a
broader transition to a low-carbon economy. Our challenge is to balance the increasing demand for cleaner
energy with the need to maintain a diverse portfolio of resources to respond to unprecedented growth. We
believe we can deliver on our purpose and reduce our own environmental impact in the long term, as long as our
customer focus remains constant.
I am stepping back into the familiar role of CEO as AEP is undergoing our own transition. Although my tenure as
CEO is temporary, I am honored to serve our company in this capacity. I have long admired AEP as a leader in
this industry, and I joined the Board in 2022 because
I was impressed with the company’s operations and
the quality of the management team and Board.
I am even more impressed two years later as
the team continued to deliver and perform under
extraordinary circumstances in 2023.
For example, AEP met or exceeded earnings
guidance for 14 years in a row, and 2023 was
no exception. In addition, we essentially kept
O&M flat for the last 10 years while at the same
time doubling our asset base due to our team’s
continuous focus on O&M efficiency.
Our disciplined approach to economic development
resulted in an increase in commercial and industrial
load in 2023 – bringing jobs and economic growth
to our communities. This growth can potentially
assist with customer affordability by spreading
fixed costs across a broader customer base. It also
enables economic diversification that positions our
communities to be more competitive in a global
economy.
Additionally, we made progress on our ongoing
efforts to simplify and de-risk our business profile
through portfolio management. We completed
the sale of our 1,365 MW unregulated renewable
portfolio and will use the sale proceeds to strengthen our regulated businesses and our
balance sheet. We also advanced our regulated
renewables investment plan and have received
regulatory approval for $6.6 billion of new
renewable projects throughout AEP’s service
territory, representing a 70% achievement of our
current five-year, $9.4 billion regulated renewables
capital plan.
While we made important progress, 2023 was a
challenging year for the industry. From unfavorable
weather, inflation, high interest rates, fuel price
volatility, and supply chain constraints, AEP and
other utilities faced significant headwinds. We
operate in a capital-intensive industry, which is
necessary to support the growing needs of our
customers and communities. Modernizing the power
system requires significant investment to enable
new resources, implement the latest technologies,
improve reliability and resiliency, and facilitate the
two-way flow of information and electricity required
by a modern grid.
Although these headwinds were challenging to
the business, nothing was as difficult as the workrelated fatalities that claimed the lives of two AEP
employees and one contractor partner in 2023. A
single loss of life is unacceptable to us, and we are
learning from these events to prevent recurrences.
We are taking a hard look at our safety culture and
putting additional measures in place, including
training, resources and tools to ensure we are
operating safely every day. If our team can’t come
to work and return home safely to their families,
nothing else matters.
As we reflect on what the future may hold, we
embrace this opportunity to reinforce our focus on
our customers and our employees. I assure you that
our priorities remain the same starting with safety,
which is our top priority. I am counting on our team
to take the time to do each job safely and to look
out for each other. We will also continue to remain
focused on providing reliable and affordable power
to our customers and working with our regulators
to do so. The affordability of our rates has never
been more important – to our customers, regulators
and to AEP. That means we’ll continue to find ways
to work together more efficiently and keep costs
down.
We also remain committed to achieving our
greenhouse gas reduction goals, including our 2045
net-zero target. It won’t be a straight line to get
there as many external factors could, and likely will,
affect the path forward. Like our industry peers,
we will face some hard decisions ahead but that
does not diminish our commitment to the energy
transition. In fact, it strengthens our commitment
to a low-carbon future. We are confident we can
balance the growing demand for cleaner energy
with ensuring reliability and affordability, while also
responding to the diverse needs of our customers
and communities. The future is promising for AEP
as we have a strong foundation from which to build.
I am committed to my role as Interim President and
CEO, and I am confident that I can make a positive difference while the Board works to identify a
permanent successor. I also know that the depth of
our talent will help us navigate through this time
of transition. Our employees are the true drivers
behind our ability to execute on our strategy.
Grounded in our values and our commitment to
continuous improvement, our employees will
continue to lead AEP with agility and perseverance.
Their inclusive and safety-first mindset enables
them to support our customers and each other
while continuing to meet our commitment of
delivering long-term value to our shareholders.
My personal priority is to ensure AEP’s employees,
customers, regulators and shareholders experience
a smooth transition to the next CEO as we continue
Our Journey Forward.
AEP’s Business Strategy:
AEP’s Business Strategy
At AEP, we are in the business of providing our customers with comfort and convenience – all through the flip of
a switch. Whether it’s keeping homes warm during cold winter nights or electric vehicles charged and ready for
the morning commute, we are committed to delivering this essential service in a safe, reliable, affordable and
environmentally compliant manner. This is reflected in our business strategy to deliver consistent and strong
performance; invest in our generation, transmission and distribution operations; and advance the growth and
development of our employees to meet our customers’ needs and lead our energy transition.
Our commitment to our customers is deeply rooted in AEP’s culture. In 2023, we refreshed our company values
and cultural norms – guiding how our employees work with our customers and each other to enable a safe and
sustainable future. This also guides our corporate purpose and reinforces our commitment to creating long-term
value for all of our stakeholders.
Every decision is made with our customers in mind, including our investment strategy. Our robust $43 billion,
five-year capital investment plan is designed to meet our customers’ needs and deliver on our earnings
commitment. We plan to allocate $27 billion of capital to transmission and distribution investments to ensure
reliable, affordable power and enhance service for our customers. As part of that plan, we’re also transforming
our generation fleet through the addition of diverse regulated resources to support the growing energy needs
of our customers. We’ve received approval to add more fuel-free renewable resources to serve our customers,
representing $6.6 billion of our planned $9.4 billion
regulated renewables capital plan. We also continue
to make progress on our strategy to de-risk our
business as we work through the final phases of
the sales process for the AEP Energy retail and AEP
OnSite Partners distributed resources businesses,
which is expected to conclude by the end of the
second quarter.
Our strategy is focused on balancing our
energy transition efforts with customer capacity
needs, system reliability, resiliency, security
and affordability. The success of our strategy is
influenced by several factors, including market
conditions and demands such as inflation and
interest rates; fuel price volatility; weather; customer
preferences and usage patterns; economic growth;
new tax incentives to support clean energy; and,
state and federal energy policy positions. The
success is also highly dependent on our state
public utility commissions that are responsible for
regulating AEP’s operations to ensure our customers
have safe, reliable and affordable energy. We believe
it is more important than ever to continue to engage
with our regulators and policymakers to listen and
respond to their needs to ensure that our capital
investment strategy best serves our customers,
communities and investors.
Responsible Business Practices:
AEP is in the business of delivering safe, reliable and affordable electricity to our customers; that is
our purpose. Our ability to do this is dependent upon our financial success, as well as non-financial, or
sustainability, factors that can impact our operations, finances and reputation. Sustainability-related factors
such as safety, workforce development, economic growth, affordability of our product, and customer
satisfaction inform our decision-making process.
These insights enable AEP to identify and manage potential risks and opportunities in order to act in the
best interest of our customers, communities, shareholders and employees. We are committed to integrating
responsible business practices into our strategy to better enable long-term stability and business continuity.
Our responsible business practices are guided by these key focus areas:
Affordable, Reliable & Just Energy Transition – Keeping our customers, communities and
employees top of mind, we are committed to a safe, affordable and just transition as we continue to
deliver reliable energy. In partnership with our regulators, we will invest in modernizing our grid
while balancing fuel cost volatility and capacity needs with managing customer costs and impacts
to our communities as we make the transition to a cleaner energy economy.
Environmental Compliance & Stewardship – We are committed to always complying with
applicable environmental requirements and being good stewards of natural resources.
Social Justice & Inclusion – We are committed to considering the social impacts of our operations
and decisions and putting mechanisms in place that provide access to cleaner and modern energy
options. This includes meaningful engagement with customers and communities to ensure fair
treatment and inclusive decision-making.
Governance & Oversight – We are committed to strong governance practices that protect the longterm interests of our stakeholders. Leadership and governance are foundational to building and
strengthening sustained business value and ensuring transparency, fairness and accountability
while providing structure to ethically manage business operations.
Billing And Payment Method:
Payment Method:
1. Online Payments: Customers can pay their bills quickly and securely through
Tampa Electric's website. The online portal allows for easy access to account
information, payment history, and billing statements.
2. Automatic Payments: Enrolling in automatic payments ensures bills are paid on
time without the hassle of manual processing. Customers can set up automatic
deductions from their bank account or credit/debit card.
3. Pay by Phone: Tampa Electric offers a toll-free number that customers can call
to make payments over the phone using a checking account, savings account, or
credit/debit card.
4.In-Person Payments: For those who prefer to pay in person, Tampa Electric has
authorized payment locations throughout its service territory. These include retail
stores, payment centers, and kiosks.
5.Mail Payments: Customers can also opt to mail their payments using the
provided payment stub and return envelope included with their monthly bill.
1. Account Information: Your name, address, and account number.
2. Billing Period: The dates covered by the bill.
3. Electricity Usage:
- Kilowatt-hours (kWh): The amount of electricity used.
- Cost: The total cost of your electricity usage.
4. Rate Plan: Your pricing plan, which may include:
- Tiered rates: Different prices for different usage levels.
- Time-of-use (TOU) rates: Prices vary based on the time of day.
5. Charges:
- Generation: The cost of producing electricity.
- Transmission: The cost of moving electricity from the generator to your home.
- Distribution: The cost of delivering electricity to your home.
- Taxes and fees: Local and state taxes, plus any additional fees.
6. Discounts or Adjustments: Any credits or adjustments applied to your bill.
7. Payment Information: Your payment due date, amount, and options.
Some additional tips to help you navigate your bill:
- Check your usage patterns to identify opportunities to save energy and money.
- Consider switching to a different rate plan if your usage habits change.
- Look for any errors or discrepancies in your bill and contact your electric company if you have questions.
Remember, understanding your bill can help you make informed decisions about your energy usage and potentially save you money!
