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MOVING FORWARD TOGETHER FOR A BRIGHTER FUTURE Prepared by Corporate Sustainability 2020 Sustainability Accounting Standards Board (SASB) Report

MOVING FORWARD TOGETHER FOR A BRIGHTER …aepsustainability.com/performance/docs/2020 AEP SASB...MOVING FORWARD TOGETHER FOR A BRIGHTER FUTURE Prepared by Corporate Sustainability

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Page 1: MOVING FORWARD TOGETHER FOR A BRIGHTER …aepsustainability.com/performance/docs/2020 AEP SASB...MOVING FORWARD TOGETHER FOR A BRIGHTER FUTURE Prepared by Corporate Sustainability

MOVING FORWARD TOGETHER FOR A BRIGHTER FUTURE

Prepared by Corporate Sustainability

2020 Sustainability Accounting Standards Board (SASB) Report

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2020 SASB Report

The Sustainability Accounting Standards Board (SASB) voluntary reporting framework is used as the basis for sustainability reporting

across multiple sectors. The SASB framework is designed to enable disclosure of company data and information in a clear and

consistent manner so that it can be used by many different stakeholders.

This year marks AEP’s first year mapping our disclosure to the SASB Standards for Electric Utilities & Power Generators. Our

response reflects year-end 2019 performance. Our SASB report is mapped to our comprehensive 2020 Corporate Accountability

Report and ESG Data Center – which serves as our foundation for all sustainability and ESG-related reporting.

For more information contact:

Sandy Nessing

Managing Director Corporate Sustainability

American Electric Power

[email protected]

Melissa Tominack

Manager, Corporate Sustainability

American Electric Power

[email protected]

Madeline Moses

Corporate Sustainability Coordinator Associate

American Electric Power

[email protected]

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TOPIC Data Request AEP Response

Greenhouse Gas Emissions

& Energy

Resource Planning

(1) Gross global Scope 1 emissions, percentage covered under (2) emissions-limiting regulations, and (3) emissions-reporting regulations

ESG Data Center: Emissions Section

Total Scope 1 Emissions CO2e (MT): 64,776,307

Carbon and Climate

Greenhouse gas (GHG) emissions associated with power deliveries

Electric Company State CO2e Lbs/MWh

AEP (Parent Company)1 -- 1279

AEP-Ohio2 OH 1166

AEP-Appalachian Power3 VA/WV 1548

AEP-Indiana Michigan Power4 IN/MI 727

AEP-Kingsport Power TN 1032

AEP-Wheeling Power WV 1683

AEP-Public Service Company of Oklahoma5 OK 1204

AEP-Southwest Electric Power Company AR/LA/TX 1549

AEP-Kentucky Power6 KY 1568

Notes: - AEP discloses emissions associated with Power Deliveries as a rate with the units:

CO2e Lbs/MWh

- Competitve Businesses not included: AEP Gen Resources, AEP Energy Partners (AEP

Texas/TNC), AEP Renewables, AEP Onsite Partners

1. Includes Energy Furnished Without Charge in Electricity Delivered from Purchased

Power (Column G) (Power purchased directly by customers from other providers)

2. AEP Ohio Purchased generation is to service Ohio Customers tha thave not chosen

an alternative supplier.

3. APCo had Specified Products. MWh's and Emission rate is effected by REC activity.

4. I&M data includes their 70% take of Rockport 2 based on AEP Gen Co FERC Form 1

data.

5. I&M data includes their 70% take of Rockport 2 based on AEP Gen Co FERC Form 1

data.

6. KPCo data includes their 30% take of Rockport 2 based on AEP Gen Co FERC Form

1 data.

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Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Carbon and Climate

Strategic Vision for a Clean Energy Future Report

(1) Number of customers served in markets subject to renewable portfolio standards (RPS) and (2) percentage fulfillment of RPS target by market

Customers with RPS:

Jurisdiction Total Retail Customers

Virginia (mandatory RPS) 533,104

Michigan (mandatory RPS) 129,333

Ohio (mandatory RPS) 1,490,098

Texas (mandatory RPS) 1,234,148

Indiana (voluntary RPS)

Oklahoma (voluntary RPS)

Total AEP 3,386,683

Note: total Retail Customers include residential, commercial industrial, and other customers

Air Quality

Air emissions of the following pollutants: (1) NOx (excluding N2O) (2) SOx,

(3) particulate matter (PM10),

(4) lead (Pb), and

(5) mercury (Hg)

Percentage of each in or near areas of

dense population

ESG Data Center: Emissions Section

Scope 1 Emissions:

NOx 35,747 MT

SO2 47,386 kg

PM10 -

Lead (Pb) 2018: 314,229 Lbs. -2019 Data to come

Mercury (Hg) 140.9 kg

Emissions

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Water Management

(1) Total water withdrawn

(2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress

ESG Data Center: Water Section

Total water Withdrawal 5,499 Billion Liters in 2019

Total Water Consumption 167 Billion liters in 2019

Water

2019 CDP Water Report pg. 6, 20 (reflects 2018 performance year.

2019 performance will be published mid-2020)

Number of incidents of non-compliance associated with water quantity and/or quality permits, standards, and regulations

2019 CDP Water Report pg. 12 (reflects 2018 performance year. 2019 performance will be published mid-2020)

Description of water management risks and discussion of strategies and practices to mitigate those risks

2019 CDP Water Report pg. 20-31(reflects 2018 performance year.

2019 performance will be published mid-2020)

Water

Coal Ash Management

Amount of coal combustion residuals (CCR) generated, percentage recycled

ESG Data Center: Waste Section Waste

Total CCPs Generated (Tons) 4,123,466

Total CCPs Diverted from Landfill (Tons) 1,593,164

Percent Total CCPs Diverted from Landfill

39%

Total number of coal combustion residual (CCR) impoundments, broken down by hazard potential classification and structural integrity assessment

CCR Rule Compliance

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Energy Affordability

Average retail electric rate for

(1) residential

(2) commercial

(3) industrial customers

Retail Rates for Residential Customers can be found on Operating Company Websites. AEP Ohio AEP Texas Appalachian Power Indiana Michigan Power Kentucky Power Public Service Company of Oklahoma Southwestern Electric Power Company

Typical monthly electric bill for residential

customers for

(1) 500 kWh and

(2) 1,000 kWh of electricity delivered per

month

Varies by jurisdiction; see operating company websites listed above.

Number of residential customer electric

disconnections for non-payment,

percentage reconnected within 30 days

GRI Report Appendix 25 pg. 45

Length of Disconnect # of Customers

Less than 48 Hours 354,923

48 Hours to one week 27,036

More than one week 105,943

Total 487,943

Discussion of impact of external factors

on customer affordability of electricity,

including the economic conditions of the

service territory

Customer Assistance

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Workforce Health and Safety

1) Total recordable incident rate (TRIR)

(2)fatality rate

(3) near miss frequency rate (NMFR)

ESG Data Center: Safety & Health and Workforce Section

Total Employee Recordable Incident Rate: .673

End-use Efficiency&

Demand

Percentage of electric utility revenues

from rate structures that

(1) are decoupled

(2)contain a lost revenue adjustment

mechanism (LRAM)

OpCo / Jurisdiction

Total Sales Revenue ($)

Decoupled Revenue

($)

Decoupled Revenue

(%)

LRAM Revenue

($)

LRAM Revenue

(%) Note

AEP Ohio 2,479,954,167 5,275,658 0.21% - - 1

AEP Texas 1,178,877,209 - - - -

APCo VA 1,315,537,963 - - - -

APCo WV 1,454,529,351 - - - - 2

IM IN 1,488,830,410 - - 17,473,83

5 1.17% 3

IM MI 301,599,036 - - - - 4

KGP TN 154,810,990 - - - -

KPCo KY 548,125,118 - - 290,602 0.05% 5

PSO OK 1,404,707,248 - - 9,865,353 0.70% 6

SWP AR 270,932,382 - - 6,700,000 2.47% 7

SWP LA 610,157,950 - - 432,934 0.07% 8

SWP TX 579,964,475 - - - -

Total AEP 11,788,026,30

0 5,275,658 0.04% 34,762,72

4 0.29%

Notes: 1. AEP Ohio recovers decoupled revenues in its Pilot Throughput Balancing Rider (PTBAR) for RS

and Non-demand-metered GS customers

2. APCo has approval to recover approximately $10M in lost revenue (LR) through its EE case;

recovery of 2019 LR to begin in 2020

3. I&M recovers Indiana NLR in its Demand Side Management / Energy Efficiency Rider

4. I&M has a NLR Tracker in Michigan, but collected $0 of lost revenue through the rider in 2019

5. KPCo recovers LR in its Demand-Side Management Adjustment Clause; 2019 values are

estimates

6. PSO recovers LR in its Demand Side Management Cost Recovery Rider; 2019 values are

estimates, subject to true-up

7. SWEPCO recovers AR Lost Contribution to Fixed Costs (LCFC) through its Energy Efficiency

Cost Rider (EECR)

8. SWEPCO recovers LA LCFC through its EECR

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Percentage of electric load served by

smart grid technology

ESG Data Center: Grid Reliability & Energy Efficiency Section

Grid Modernization

Modernizing Distribution

Modernizing Transmission

Modernizing telecommunications

Energy Storage

Customer electricity savings from

efficiency measures, by market

ESG Data Center: Grid Reliability & Energy Efficiency Section

Home Energy Management

Nuclear Safety & Emergency Management

Total number of nuclear power units,

broken down by U.S. Nuclear Regulatory

Commission (NRC) Action Matrix

Column

AEP has two nuclear power units operating at the Cook Nuclear Plant in Michigan Indiana Michigan Cook Nuclear Plant

Description of efforts to manage nuclear

safety and emergency preparedness

Cook Nuclear Plant Emergency Plan

2019 Form 10k: Pdf pg. 437

Grid Resiliency

Number of incidents of non-compliance

with physical and/or cybersecurity

standards or regulations

GRI Report Appendix 21 pg. 42

(1) System Average Interruption Duration

Index (SAIDI)

(2) System Average Interruption

Frequency Index (SAIFI)

(3) Customer Average Interruption

Duration Index (CAIDI), inclusive of

major event days

ESG Data Center: Grid Reliability & Energy Efficiency Section Grid Reliability

SAIDI 228.8 minutes

SAIFI 1.406

CAIDI 162.8

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Activity Metric 2020 AEP Response

Number of: (1) residential (2) commercial,

(3) industrial customers served

ESG Data Center: Customer, Community, and Economic Impact Section\

Year End 2019 Customer Counts

Residential 4,661,713

Commercial 712,800

Industrial 47,676

Other 30,177

Total 5,452,366

Total electricity delivered to: (1) residential (2) commercial

(3) industrial

(4) all other retail customers

(5) wholesale customers

2019 Form 10k: Pg. 231, 237

Customer Type Vertically Integrated and Transmission and

Distribution Utilities Total (Millions of KWhs)

Residential 58,766

Commercial 48,857

Industrial 58,541

Other 3,081

Total Retail 169,245

Wholesale 22,425

Total KWhs 191,670

Length of transmission and distribution lines

ESG Data Center: Grid Reliability & Energy Efficiency Section

Transmission ~40,001

Distribution ~221,000

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Total electricity generated, percentage by major energy source, percentage in regulated markets

ESG Data Center: Energy Section

Total Net Generation for the Data Year 92,487,743

Coal 52,275,891

Natural Gas 13,953,693

Nuclear 16,157,850

Hydro 1,018,253

Solar 31,975

Wind 9,082,056

Sustainable Electricity

Total wholesale electricity purchased 2019 Form 10k: Pdf pg. 547