American Electric Power Base

By Mel Duvall  |  Posted 2003-11-01 Email Print this article Print

The Ohio utility's systems protected its 4.9 million customers during the Aug. 14 blackout. But did they knock out power to 50 million people in the process?

American Electric Power Base Case

1 Riverside Plaza, Columbus, OH 43215

(614) 223-1000

Largest electricity generator in the U.S., producing 42,000 megawatts at peak capacity in the U.S. and select international markets. Serves 4.9 million customers in 11 states.
Chief Information Officer: Joseph Hamrock

Financials in 2002: $14.5 billion in sales; $519 million loss— -$1.57 per share—after $1.5 billion in writedowns.

Challenge: To protect its own systems and customers from blackouts while at the same time fulfilling its role as a contributor to the nationwide power grid.

Baseline Goals:

  • Reduce operational and maintenance expenses, which increased by $586 million from $3.7 billion in 2001 to $4.3 billion in 2002.
  • Dispose of non-core assets that have been a drag on profits, most notably in telecommunications and British power plants.
  • Resolve the transfer of the company's transmission lines to regional transmission organizations. Investment in new lines has been hampered by ongoing disputes.

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    Contributing Editor
    Mel Duvall is a veteran business and technology journalist, having written for a variety of daily newspapers and magazines for 17 years. Most recently he was the Business Commerce Editor for Interactive Week, and previously served as a senior business writer for The Financial Post.


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