American Electric Power Base

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

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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?

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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.


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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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