AEP's 2020 SASB Report
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MOVING FORWARD TOGETHER FOR A BRIGHTER FUTURE 2020 Sustainability Accounting Standards Board (SASB) Report Prepared by Corporate Sustainability 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] 2 TOPIC Data Request AEP Response (1) Gross global Scope 1 emissions, ESG Data Center: Emissions Section percentage covered under Total Scope 1 Emissions CO2e (MT): 64,776,307 (2) emissions-limiting regulations, and (3) emissions-reporting regulations Carbon and Climate 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 Greenhouse AEP-Wheeling Power WV 1683 Gas Emissions AEP-Public Service & Company of Oklahoma5 OK 1204 Energy AEP-Southwest Electric Resource Power Company AR/LA/TX 1549 Planning Greenhouse gas (GHG) emissions 6 associated with power deliveries AEP-Kentucky Power 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. 3 Discussion of long-term and short-term strategy or plan to manage Scope 1 Carbon and Climate emissions, emissions reduction targets, Strategic Vision for a Clean Energy Future Report and an analysis of performance against those targets Customers with RPS: Total Retail Jurisdiction Customers (1) Number of customers served in Virginia (mandatory RPS) 533,104 markets subject to renewable portfolio Michigan (mandatory RPS) 129,333 standards (RPS) and Ohio (mandatory RPS) 1,490,098 (2) percentage fulfillment of RPS target Texas (mandatory RPS) 1,234,148 by market Indiana (voluntary RPS) Oklahoma (voluntary RPS) Total AEP 3,386,683 Note: total Retail Customers include residential, commercial industrial, and other customers ESG Data Center: Emissions Section Scope 1 Emissions: Air emissions of the following pollutants: NOx 35,747 MT (1) NOx (excluding N2O) (2) SOx, SO2 47,386 kg (3) particulate matter (PM10), PM10 - Air Quality (4) lead (Pb), and (5) mercury (Hg) Lead (Pb) 2018: 314,229 Lbs. -2019 Data to come Percentage of each in or near areas of dense population Mercury (Hg) 140.9 kg Emissions 4 ESG Data Center: Water Section Total water Withdrawal 5,499 Billion Liters in 2019 (1) Total water withdrawn Total Water Consumption 167 Billion liters in 2019 (2) total water consumed, percentage of Water each in regions with High or Extremely High Baseline Water Stress 2019 CDP Water Report pg. 6, 20 (reflects 2018 performance year. Water 2019 performance will be published mid-2020) Management Number of incidents of non-compliance associated with water quantity and/or 2019 CDP Water Report pg. 12 (reflects 2018 performance year. 2019 quality permits, standards, and performance will be published mid-2020) regulations 2019 CDP Water Report pg. 20-31(reflects 2018 performance year. Description of water management risks and discussion of strategies and 2019 performance will be published mid-2020) practices to mitigate those risks Water ESG Data Center: Waste Section Waste Amount of coal combustion residuals Total CCPs Generated (Tons) 4,123,466 (CCR) generated, percentage recycled Total CCPs Diverted from Landfill (Tons) 1,593,164 Coal Ash Percent Total CCPs Diverted from 39% Management Landfill Total number of coal combustion residual (CCR) impoundments, broken down by hazard potential classification CCR Rule Compliance and structural integrity assessment 5 Retail Rates for Residential Customers can be found on Operating Company Websites. Average retail electric rate for AEP Ohio AEP Texas (1) residential Appalachian Power Indiana Michigan Power (2) commercial Kentucky Power (3) industrial customers Public Service Company of Oklahoma Southwestern Electric Power Company Typical monthly electric bill for residential customers for (1) 500 kWh and Varies by jurisdiction; see operating company websites listed above. (2) 1,000 kWh of electricity delivered per Energy month Affordability GRI Report Appendix 25 pg. 45 Number of residential customer electric Length of Disconnect # of Customers disconnections for non-payment, Less than 48 Hours 354,923 48 Hours to one week percentage reconnected within 30 days 27,036 More than one week 105,943 Total 487,943 Discussion of impact of external factors on customer affordability of electricity, Customer Assistance including the economic conditions of the service territory 6 1) Total recordable incident rate (TRIR) Workforce ESG Data Center: Safety & Health and Workforce Section Health and (2)fatality rate Total Employee Recordable Incident Rate: .673 Safety (3) near miss frequency rate (NMFR) Decoupled Decoupled LRAM LRAM OpCo / Total Sales Revenue Revenue Revenue Revenue Note Jurisdiction Revenue ($) ($) (%) ($) (%) 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 17,473,83 IM IN 1,488,830,410 - - 5 1.17% 3 IM MI 301,599,036 - - - - 4 Percentage of electric utility revenues KGP TN 154,810,990 - - - - from rate structures that End-use KPCo KY 548,125,118 - - 290,602 0.05% 5 Efficiency& (1) are decoupled PSO OK 1,404,707,248 - - 9,865,353 0.70% 6 SWP AR 270,932,382 - - 6,700,000 2.47% 7 Demand (2)contain a lost revenue adjustment SWP LA 610,157,950 - - 432,934 0.07% 8 mechanism (LRAM) SWP TX 579,964,475 - - - - 11,788,026,30 34,762,72 Total AEP 0 5,275,658 0.04% 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 7 ESG Data Center: Grid Reliability & Energy Efficiency Section Grid Modernization Percentage of electric load served by Modernizing Distribution smart grid technology Modernizing Transmission Modernizing telecommunications Energy Storage Customer electricity savings from ESG Data Center: Grid Reliability & Energy Efficiency Section efficiency measures, by market Home Energy Management Total number of nuclear power units, AEP has two nuclear power units operating at the Cook Nuclear Plant in broken down by U.S. Nuclear Regulatory Michigan Nuclear Safety Commission (NRC) Action Matrix Indiana Michigan Cook Nuclear Plant & Emergency Column Management Description of efforts to manage nuclear Cook Nuclear Plant Emergency Plan safety and emergency preparedness 2019 Form 10k: Pdf pg. 437 Number of incidents of non-compliance with physical and/or cybersecurity GRI Report Appendix 21 pg. 42 standards or regulations (1) System Average Interruption Duration ESG Data Center: Grid Reliability & Energy Efficiency Section Grid Resiliency Index (SAIDI) Grid Reliability (2) System Average Interruption Frequency Index (SAIFI) SAIDI 228.8 minutes (3) Customer Average Interruption SAIFI 1.406 Duration Index (CAIDI), inclusive of CAIDI 162.8 major event days 8 Activity Metric 2020 AEP Response ESG Data Center: Customer, Community, and Economic Impact Section\ Year End 2019 Customer Counts Number of: (1) residential Residential 4,661,713 (2) commercial, Commercial 712,800 (3) industrial customers served Industrial 47,676 Other 30,177 Total 5,452,366 2019 Form 10k: Pg. 231, 237 Vertically Integrated and Transmission and Customer Type Distribution Utilities Total (Millions