Waste-to-Profit

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100 YEARS

• Waste-to-Profit
• April 12, 2007

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Fortune magazine, April 2, 2007
Over 11 graphics in this issue alone dealing with
the environment and positive economics
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Fortune
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(No Transcript)
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The waste we collect helps power over one
million homes. Waste Management - - Think
Green.
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SIEMENS ELECTRIC
our innovations are designed to minimize their
impact on the environment.
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Clean Power Today! Instead of imagining a
better environment, let us help you make it
happen.
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All in favor of protecting the environment,
raise your hand.
Home Depot
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With over 800 environmentally responsible, high
quality papers, using DOMTAR EarthChoice helps
protect his world and yours.
DOMTAR EarthChoice . high quality paper with a
conscience.
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. putting environmental savings in a whole new
light.
Sea Gull Lighting
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the sky is the limitBecause for all of us at
ADM, there are no limits to a cleaner, greener
world.
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United Technologies
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AEP An Introduction
Among the largest U.S. electricity generators
with 39,000 MW Americas largest coal user The
nations largest electrical transmission
system gt240,000 miles of TD A large consumerof
natural gas Major wind developer 5 million
customers in 11 states
AEP Fuel Portfolio Increasingly Diverse AEP Fuel Portfolio Increasingly Diverse AEP Fuel Portfolio Increasingly Diverse AEP Fuel Portfolio Increasingly Diverse AEP Fuel Portfolio Increasingly Diverse AEP Fuel Portfolio Increasingly Diverse
Coal Gas Nuclear Hydro Wind
1998 88 0 9 3 0
Today 70 20 7 2 1
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AEP is Americas Largest Coal User
Coal consumed (million tons / yr.) Coal combustion products (CCPs) produced (million tons / yr.)
AEP 75 8
In all of the U.S. 943 75
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Sustainability ..

• The ability to meet our present needs
• without compromising the ability of future
• generations to meet theirs

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AEPs 2006 Corporate Responsibility Report

• Our Vision for Sustainability
• safely provide reliable, reasonably priced
  electric power
• actively work to protect people and the
  environment.
• engage stakeholders
• continue our role in making peoples lives better
  today and for generations to come

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Waste-to-Profit at AEP is enterprise-wide

• Asset Recovery
• Environmental Services
• Information Technology
• Generation
• Transmission
• Distribution
• Telecommunications
• Materials Services

• Fleet
• Workplace Services
• Land Management
• Procurement
• Aviation

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Asset Recovery Group

• Take surplus assets
• generate revenue
• balance risk
• address environmental concerns
• support customers missions

Disposition Hierarchy redeploy re-stock sell scrap donate pay to dispose
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Representative Projects

• CCP utilization
• Power Plant demolition and salvage
• electric motors
• spare parts
• scrap metals
• Spent Selective Catalytic Reduction (SCR)
  catalyst modules
• Used electrical equipment / transformers
• Information Technology equipment
• Mobile phones

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2006 - - Waste-to-Profit examples

• Scrap Metal sales 8.8 million
• Material sales 3.4 million from
• Generation 2.0 million
• Utility 1.3 million
• Other 62,000
• Cost avoidance / savings 2.2 million
• _____________________
  
  __________________________
• Total 14.4 million

(CCPs not included)
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Coal Combustion Products (CCPs)

• CCP production and utilization at AEP
• burned 74.8 million tons of coal in 2005 at 22
  power plants
• produced 8.2 million tons of CCPs
• utilized 44 in concrete, structural fill, ice
  control (grit), etc.
• represents 18 million / year in revenues and
  avoided costs
• CCP utilized in
• concrete, concrete block, road base asphalt and
  ice control
• flowable fill and structural fill
• paint manufacturing, Corvette body production,
  blasting grit, amber glass manufacturing, roofing
  shingles and wallboard
• mined land reclamation (both contours and AMD
  treatment)

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CCPs
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CCP Utilization Avoids Disposal
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Synthetic gypsum as a useable byproduct
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CCP Utilization
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CCP Utilization
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CCP and Mine Reclamation

• CCP used to reclaim highwalls and to treat acid
  mine drainage

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Reclaimed, Mined Land Use Tree Plantation for
paper mill feedstock
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Working with EPRI on Beneficial Uses for Old
Poles and Crossarms
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Biomass co-firing at Picway Plant
Utilizing cabinet makers waste wood to augment
coal-fired production of electricity
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Power Plant Demolition Salvage
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Spent SCR Catalysts
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Used Electrical Equipment
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Used Electrical Equipment

• Some used electrical equipment is rebuilt
• Partially offsets cost of new units

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IT End-of-Life Program

• contract is in place to take used IT equipment
  and refurbish or recycle
• AEP Asset Recovery is working to improve the
  return

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AEPs CO2 Capture and Enhanced Oil Recovery

• chilled ammonia process for capturing CO2
  emissions from two AEP power plants
• initial validation at Mountaineer Plant (4Q
  2008)
• commercial-scale at Northeastern Plant in OK
  (late 2011)
• 1.5 million tons of CO2/year captured
  sequestered
• approximate capital cost of 250-300 million
• annual OM of 12 million

Northeastern Station 34

• Enhanced Oil Recovery - - Used to increase
  production from mature oil fields
• water or gas traditionally was injected to
  increase pressure but recently are seeing CO2
  being used
• sell the captured CO2 for Enhanced Oil Recovery
  in Oklahoma

End