American Electric Power Base

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?

Case">
American Electric Power Base Case

Headquarters: 1 Riverside Plaza, Columbus, OH 43215

Phone: (614) 223-1000

Business: 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.