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Nicholas K. Akins Chairman, President and Chief Executive Officer

Smarter, more resilient and more flexible energy infrastructure enhances reliability and allows us to offer new energy solutions and technologies to our customers.

As the country’s largest transmission owner and one of its largest utility companies, AEP has been leading the transformation of the electricity business for more than a century. Since 1906, our company has brought comfort to our customers and served as the backbone of our economy. Today, we’re giving our customers more choice and flexibility through a smarter grid that delivers more reliable, more secure and increasingly clean energy.

We have retired more than 7,200 megawatts of coal-fueled generating capacity in the past six years. Coal now accounts for about 47 percent of AEP’s generating portfolio, compared with 71 percent in 2005. We have have cut our carbon dioxide emissions by 44 percent since 2000 and reduced our sulfur dioxide, nitrogen oxide and mercury emissions by approximately 90 percent from 1990 levels. Meanwhile, the energy we supply from renewable resources, like hydro, wind and solar, continues to grow — from 3 percent of our generating capacity in 2005 to 13 percent today.

Our customers also have greater access to new energy resources and solutions through our investments in advanced, smart grid technologies. Smarter, more resilient and more flexible energy infrastructure enhances reliability and allows us to offer new energy solutions and technologies to our customers.

AEP’s support was critical in securing a $40 million federal Smart City grant for Columbus, OH. We are undertaking nearly $175 million in projects related to Smart Columbus, including the development of microgrids, electric vehicle charging stations, smart street lighting systems and other technologies.

In addition to smart grid technologies, we plan to invest $1.5 billion in renewable generation over the next three years to further boost the diversity of our power supply portfolio. We also are investing $9 billion in our transmission business from 2017 through 2019 to support the development of new generation technologies and enhance the reliability and resiliency of our nation’s bulk power delivery system.

Our success in transforming how we make and deliver power to our customers is possible only because of the commitment, agility and ingenuity of our employees. Their dedication to safety and innovation continues to drive results for our customers, shareholders and the environment.