1. Electric Transmission Overview May 13, 2015
Tony Greve, Customer Services Engineer AEP Ohio

2. AEP is Headquartered in Columbus, Ohio
American Electric Power – Service Territory
AEP delivers electricity to more than 5.3 million customers across a 200,000 + square mile service territory.
AEP is Headquartered in Columbus, Ohio 2

3. American Electric Power - Major Businesses Include
Regulated Utility Operations
Seven regional electric utilities, serving customers in 11 states.
Transmission
Strongest transmission network in the United States.
Power Generation
One of the nation’s largest, most efficient, and most innovative generation fleets.
AEP Energy Partners
Providing electric supply to customers in deregulated electricity markets.
River Operations
One of the nation’s largest barge companies, transporting coal and other cargo. 3

4. American Electric Power – Overview
AEP is one of the largest electric utilities in the United States
38,000 MW of generating capacity
39,000 miles of electric transmission lines
221,000 miles of electric distribution lines
AEP is the largest owner of electric transmission in the United States
AEP’s transmission system supplies approximately 10% of the demand in the Eastern Interconnection (the transmission system that serves 38 states and eastern Canada)
Has more 765 kV extra high voltage transmission lines than all other United States transmission systems combined ~2,100 miles.
Eleven states served: Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, West Virginia
AEP has a 100+ year history of providing low-cost, reliable transmission service to customers, and is at the forefront of technology development in the transmission industry 4

5. American Electric Power – Columbus Area Transmission
The 765 kV and 345 kV backbone network can delivery power from a multitude of sources across the PJM region. Lower-voltage lines (both overhead and underground) feed into the city from multiple substations around the area.
AEP’s transmission planning criteria requires additional safeguards for the reliability of major metropolitan areas (minimum N-2 reliability). As the largest city on the AEP system, the Columbus area can withstand multiple simultaneous outages on the transmission network with no loss of load.
In addition to 5-year and 15-year studies performed in coordination with PJM, AEP Transmission Operations perform forward-looking seasonal assessments (e.g., pre-summer) to prepare for forecasted system conditions.
Operating guidelines are developed for the upcoming season to provide guidance in managing the transmission system in anticipation of possible contingency outages.
Columbus is served by one of the most robust transmission systems in the U.S., operated as part of the PJM Regional Transmission Organization (RTO).
AEP is investing over $1.5 billion in Ohio’s transmission and distribution infrastructure between 2014 and 2016. 5

6. Transmission Operations Center – New Albany, OH
American Electric Power – Transmission Real Time Operations
AEP’s Transmission Operations Center (TOC) is located in the Columbus suburb of New Albany.
Transmission dispatch and control is directed for AEP’s eleven state area directly from the TOC. The building is staffed by NERC-certified system control operators and dispatchers.
In cooperation and coordination with PJM, AEP monitors and controls the transmission system on a real-time basis 24/7/365 via a robust Supervisory Control and Data Acquisition (SCADA) system, allowing for rapid load and system topology control.
The TOC houses a state-of-the-art state estimator system that monitors real system information and uses this information to run nearly a thousand contingency outage cases every four minutes to prepare for any possible system conditions.
Operators also perform “next day” analysis to anticipate and plan for system conditions the following day.
Operations Engineering is staffed on a 24/7 “on-call” basis to assist with real-time response to outages.
Transmission Operations Center – New Albany, OH
The LEED certified building is built to withstand an F4 tornado and has redundant systems and dual infrastructure backbone networks. 6

7. Regional Transmission Organization Map7

8. PJM Map
PJM is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. 8

9. American Electric Power – Generation Retirements
Over 16 GW of generation retirements recently announced in the near-term
7 GW retiring in the state of Ohio alone
AEP will retire nearly 6,600 megawatts of coal-fueled generating capacity in 2015 and 2016 due to environmental regulations and market conditions, and will increase its use of natural gas, renewables and energy efficiency resources. as part of this mass retirement. 9

10. American Electric Power – Generation Retirements
Over 16 GW of generation retirements recently announced in the near-term
7 GW retiring in the state of Ohio alone
AEP will retire nearly 6,600 megawatts of coal-fueled generating capacity in 2015 and 2016 due to environmental regulations and market conditions, and will increase its use of natural gas, renewables and energy efficiency resources. as part of this mass retirement. 10

11. Customer & Reliability
American Electric Power – Ohio Transmission Projects
Project
Driver
Cost
In-Service Date
Vassell Station
New 765/345-kV station in Columbus District; additional 138-kV line into Delaware.
System Improvement
$ 212 million
2014
East Lima Station
Add new 345 kV circuit breaker string with three (3) kV circuit breakers and switch position of Transformer #1 with the Southwest Lima 345 kV line.
Baseline reliability
$ 5 million
2016
North Baltimore Area Improvements
Rebuild approximately 21 miles of old 34.5 kV transmission line and covert to 69 kV operation.
$ 30 million
2018
East Amsterdam – Miller Switch
Rebuild 10 miles of 69 kV line for future operation at 138 kV to serve shale customer increased electrical demand.
$ 31 million
2015
Yager
Install a 200 MVA, 138/69-kV transformer, tie to two ATSI 138 kV lines, construct/rebuild ~15 miles of 138 kV line to support shale customer expansions.
$ 70 million
Nottingham (T&D Reliability, plus)
Create 138 kV switch station to tie to six ATSI 138 kV lines, and construct ~5 miles of 138 kV line to customer capacity
$ 64 million
Muskingum - Natrium
Sag study and reconductor the 55 mile double circuit 138 kV line. Line will support customer expansions.
$ 57 million
2017
Holloway
Install 345/138 kV station to “repower” six ATSI 138 kV lines near the retired Burger Power Plant.
Baseline reliability 
$ 51 million
Marietta System (T&D Reliability, plus)
Install a 138 kV and 69-kV area network (~65 net miles) to retire 23-kV sub-distribution system.
$ 110 million
Biers Run Station
Construct new 345/138/69 kV station at Biers Run with outlets to Circleville and Delano; two 69-kV outlets to Ross-Highland 69-kV line; replace various D transformer banks.
$ 100 million
Battelle (T&D Reliability, plus)
Provide Battelle with 69 kV service by end of 2015 as the next step in providing them two way transmission service.
Customer & Reliability
$ 12 million
Tidd – Sunnyside, Asset Renewal
Rebuild 55 miles of old/low capacity 138 kV line, six wired, with 1234 ACSS, support two future 138 kV circuits & load growth.
Asset Renewal
$ 120 million
Vassell
East Lima
North Baltimore
East Amsterdam - Miller SW
Yager
Nottingham *
Muskingum - Natrium
Holloway
Marietta *
Biers Run 
Battelle *
Tidd – Sunnyside, Asset Renewal
* These project are T&D Reliability Projects. 1 4 5 6 10 9 8 7 2 3 11 12 11

12. American Electric Power – Vassell Station
Construct Vassell Station, a new 765/345/138 kV Station near Sunbury, Ohio.
Tap the Kammer – Maliszewski 765 kV circuit and Hyatt – Corridor 345 kV circuit, Add a second circuit from Vassell to Corridor
Add 138 kV circuit from Vassell to Delaware
Add St. Clair 138 kV SVS System
In-Service/Energized Date: 10/31/14, remainder in
Project Cost: $212 Million.
765 kV Yard
345/138 kV Yard 12

13. American Electric Power – Transmission line miles
State/Voltage
765
500
345
230
161
138
115
SubTotal 88 69 46 40
34.5 23
Total
Arkansas 78
305
235 26
644
444
1,088
Indiana I&M
600
1,383
1,429
3,412
406
3,818
541
4,359
Transco - Indiana 3 11 14 1 15
Indiana
1,432
3,415
417
3,832
542
4,374
Kentucky
257 8 48
339
652
429
166
1,247
1,250
Louisiana
105
282
388
328
716
Michigan - I&M 16
234
232
482
281
763
136
899
Transco - Michigan
Michigan
296
778
914
Ohio OPC
507
1,415
3,230
5,152
2,352 58
7,562 77
8,056
Transco - OH 54 56
147 6
Ohio Total
508
1,416
3,284
5,208
2,440 61
7,709
423 85
8,217
Oklahoma PSO
591 34
2,064 10
2,708
647
3,355
Transco - OK
125
131
256
Oklahoma SEP 59 38 97
Oklahoma Total
650
2,227
2,930
3,708
Tennessee APC 91
110
201 2
203
Tennessee KGP 44 29 73
Tennessee Total
154
245
247
276
Texas TCC
630
2,446
3,076
1,216
4,292
Texas PSO 17 12
Texas SEP
493
887
1,395
801
2,196
ETT
997
1,342
186
1,528
Texas TNC
224
1,423
1,647
2,445
4,092
Texas Total
2,361
5,113
7,489
4,648
12,137
Virginia
349 96
1,560
2,089
2,767 98
2,865
Transco - WV
West Virginia OPC 41
West Virginia APC
384
310
1,179
1,874 37
696
2,956 57
3,013
West Virginia WPC
192
223 84
307
W. Virginia Total
325
1,412
2,138
433
3,304
3,361
Voltage Totals
2,114
113
6,629
140
361
16,270 52
25,681
10,845
910
37,534
1,288
38,907 13

14. American Electric Power – Aging infrastructure
Replacement of 25% of U.S. transmission facilities after 50, 60, 70, and 80-year lives
Source: The Brattle Group, September 2013 14

15. United States Transmission Grid15