American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — ESG Presentation (November 2018)
24 slides from American Electric Power's sustainability presentation, Nov 16, 2018
Slide 1: Climate Action 100+ Investor Meeting
CLIMATE ACTION 100+ INVESTOR MEETING Columbus, OH November 16, 2018 53rd EEI Financial Conference | aep.com 0
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are
Slide 3: The Premier Regulated Energy Partner
THE PREMIER REGULATED ENERGY AMERICA’S COMPANY ENERGY AMERICA’S PARTNER ENERGY PARTNER 40,000 $38B Miles of Transmission Rate Base 5.4M Customers in 11 States 26GW Owned Generation $37B Current Market Capitalization 18,000+ Employees $68B Total Assets Note: Statistics as of September 30, 2018 except
Slide 4: Sustainable Future
SUSTAINABLE FUTURE 53rd EEI Financial Conference | aep.com 3
Slide 5: ESG Reporting and Clean Energy Strategy
Environmental, Social & Governance (ESG) Reporting: AEP’s Corporate Accountability Report Clean Energy Strategy: American Electric Power: Strategic Vision for a Clean Energy Future Strategy to Achieve: EEI ESG Sustainability Reporting: AEP’s 2018 EEI Investments in renewable energy within an
Slide 6: Transforming Our Generation Fleet
TRANSFORMING OUR GENERATION FLEET 80% 70% 70% 66% 60% Capacity 50% 47% 40% 34% 30% 29% 28% 24% 22% 20% 19% 14% 10% 7% 6% 7% 7% 6% 4% 4% 4% 1% 1% 0% 1999 2005 2018 Future 1999 2005 2018 Future 1999 2005 2018 Future 1999 2005 2018 Future 1999 2005 2018 Future Coal Natural Gas Nuclear Hydro, Wind, Sola
Slide 7: Annual Capital Investment History and Net Plant Profiles
ANNUAL CAPITAL INVESTMENT NET PLANT PROFILES HISTORY $ in millions AEP has invested in reliability and grid strengthening over the last decade, dramatically changing the capital allocation in Generation, Transmission and Distribution 53rd EEI Financial Conference | aep.com 6
Slide 8: 2019-2023 Capital Forecast: Total $33B
2019 – 2023 CAPITAL FORECAST: TOTAL $33B Regulated Renewables Regulated Environmental $0.5B | 1% Generation Regulated Fossil/Hydro $1.1B | 3% Generation Contracted Renewables $1.0B | 3% $2.2B | 7% Nuclear Generation $0.5B | 2% Corporate $2.8B | 9% AEP Transmission Holdco 100% of capital allocated to
Slide 9: Capital Allocation Shifted to Wires from Generation
CAPITAL ALLOCATION SHIFTED TO WIRES FROM GENERATION 2008 2018 Capital 2019-2023 Capital Forecast Generation Distribution Distribution Generation 11% 31% 54% 29% 17% 58% Transmission Transmission 53rd EEI Financial Conference | aep.com 8
Slide 10: Projected Resource Additions
PROJECTED RESOURCE ADDITIONS Solar Additions (MW) Wind Additions (MW) Natural Gas Additions (MW) Operating 2024- 2028- Operating 2024- 2028- Operating 2024- 2028- 2021-2023 2021-2023 2021-2023 Co: 2027 2030 Co: 2027 2030 Co: 2027 2030 AEP Ohio Up to 400 * - - AEP Ohio Up to 500* - - I&M - - 1,500 AP
Slide 11: Integrated Resource Plan Status
INTEGRATED RESOURCE PLAN STATUS Draft IRPs Underway/Planned Previously Approved Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 IRPs 12/1/18 9/30/19 5/1/19 (AR) (LA) (VA) 12/20/19 12/21/18 May / June 2019 Next IRP filing date for APCo (WV) is January 2021 53rd EEI Financial Conference | aep.com 10
Slide 12: Coal Retirement Progress and Plans
COAL RETIREMENT PROGRESS AND PLANS Operating Company Plant MW Retirement Date APCo Glen Lyn 5 95 2015 Glen Lyn 6 240 2015 Clinch River 3 235 2015 Sporn 1 150 2015 Sporn 3 150 2015 Kanawha River 1 200 2015 Kanawha River 2 200 2015 Total MW 1,270 I&M Tanners Creek 1-4 995 2015 Total MW 995 KPCo Big Sa
Slide 13: Delivering Clean Energy Resources
DELIVERING CLEAN ENERGY RESOURCES AEP's September 30, 2018 Renewable Portfolio, in MW Hydro, Wind, Solar & Pumped Storage Owned MW PPA MW Total MW AEP Ohio 209 209 Appalachian Power Company 816 575 1,391 Indiana Michigan Power Company 36 450 486 Public Service of Oklahoma 1,137 1,137 Southwestern El
Slide 14: Largest Investment in Environmental Controls
LARGEST INVESTMENT IN ENVIRONMENTAL CONTROLS 53rd EEI Financial Conference | aep.com 13
Slide 15: Dramatic Reductions in Emissions
DRAMATIC REDUCTIONS IN EMISSIONS 1990-2017 ACTUAL SO2 95% NOx 92% 2001-2017 ACTUAL Hg 95% 53rd EEI Financial Conference | aep.com 14
Slide 16: Dramatic Reductions in Emissions
DRAMATIC REDUCTIONS IN EMISSIONS 2000-2017 Actual CO2 57% 53rd EEI Financial Conference | aep.com 15
Slide 17: Investing in Regulated Renewables
INVESTING IN REGULATED RENEWABLES 53rd EEI Financial Conference | aep.com 16
Slide 18: SWEPCO and PSO Customer Savings Plan
SWEPCO AND PSO CUSTOMER SAVINGS PLAN SWEPCO and PSO draft Integrated Resource Plans (IRP) Current Draft IRP Wind Nameplate Forecast continue to indicate that customers benefit from additional low- cost wind energy resources Wind Procurement * 2021-2023 Customer benefits realized in part by the f
Slide 19: AEP Ohio – Solar Project Filing
AEP OHIO – SOLAR PROJECT FILING Two solar REPAs with both facilities on line by end of 2021: Highland Solar, 300 MW Willowbrook Solar, 100 MW Debt Equivalency Cost Mechanism to provide recovery for use of Balance Sheet (approximately $6M annually) Green Tariff that allows all customer clas
Slide 20: Investing in Competitive Business
INVESTING IN COMPETITIVE BUSINESS 53rd EEI Financial Conference | aep.com 19
Slide 21: Competitive Business Presence
COMPETITIVE BUSINESS PRESENCE AEP Competitive Businesses (Snapshot as of 10/19/18) AEP Energy ------------------ 415,000 Customers AEP Energy Partners -------------- 82 Customers AEP OnSite Partners ------ Solar: 102 MW (DC) AEP Renewables -------- Solar: 116.4 MW (DC) Wind: 257 MW 53rd EEI Financia
Slide 22: Universal Scale Renewable Projects
UNIVERSAL SCALE RENEWABLE PROJECTS Desert Sky Wind Farm (TX) – 167 MW Trent Wind Farm (TX) – 154 MW • PPA with City Public Service San Antonio • PPAs with various Cooperatives • Joint Venture with Invenergy • Joint Venture with Invenergy • Repowered in 2018 by GE • Repowered in 2018 by GE • AEP owns
Slide 23: Customer Energy Solutions
CUSTOMER ENERGY SOLUTIONS Trinity College Fuel Cell (CT) – 1.4 MW Paloma High School (CA) – 1.1 MW-DC • Committed to nearly $330 million in energy assets • Portfolio of 51 operating and under construction projects in 15 different states • Projects include customer sited solar projects, behind the me
Slide 24: Contracted Clean Energy Investments $2.2B Capital Allocated 2019-2023
CONTRACTED CLEAN ENERGY INVESTMENTS $2.2B CAPITAL ALLOCATED 2019-2023 Renewable Generation Asset Owner “Behind-the-Meter” Energy Assets Universal Scale Energy Assets Utilities, Municipalities, Schools, Cities, Hospitals and Key Customers Corporations and Cooperative Commercial / Industrial Accounts
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