AEP Retirees & Alumni

AEP Ohio President and Chief Operating Officer Julie Sloat (fourth from left) breaks ground on Lima’s new de-manufacturing plant alongside Recleim and Allen County leaders.

(Story by Karen Salajko)

The landscape of Lima’s business community is growing, with AEP Ohio helping to bring more than a hundred new jobs and new hope to a city welcoming its first new manufacturing plant in several years.

In the spirit of recycling, a 94,000-square-foot warehouse will be converted to the new home of Recleim, an appliance de-manufacturing plant.

AEP Ohio’s Economic & Business Development team spent the last year working on the move with the Atlanta-based company, Allen County Economic Development Group, the Regional Growth Partnership, JobsOhio and the city of Lima.

“There was an existing building, and a willing developer to develop a new building if needed. We were working to help Recleim identify an AEP Ohio location, and it all pointed toward Lima,” said Tim Wells, AEP Ohio’s Economic & Business Development Manager.

The arrival of Recleim will bring 150 jobs and a company investment of $15 million for machinery and upgrades to the facility.

“First, transportation infrastructure, rail and highway access, Recleim found all of that beneficial. Second, the commitment that AEP Ohio made to them for the opportunity to process the appliances out of homes and businesses through its programs was also highly instrumental in getting them to locate here,” said Lima Mayor David Berger.

“And of course, we are a community of manufacturers, and the skillset is here and the opportunity is here to provide the human resources,” Berger added.

In a county where the unemployment rate stood at 5.1 percent in March, this is rewarding work for all of the community partners involved in landing the deal.

“Communities today don’t want to rely on one big employer. While large employers are terrific, it’s important to diversify so that one day, if a major employer decides to downsize or relocate, there are strong alternative employment opportunities for the residents of the community,” said Wells.

AEP Ohio’s economic development effort doesn’t end with bringing this project to fruition. AEP Ohio’s grant programs also help offer support to improve new businesses. Recleim is applying for a $20,000 Rate Stabilization Plan (RSP) Grant that would help with the necessary electrical infrastructure upgrades to the facility. The RSP Grant programs have been in place since 2006, investing nearly $8 million in Ohio employers, creating more than 5,000 jobs and helping to retain over 10,000 jobs.

“AEP Ohio is pleased to serve many outstanding Ohio communities and partners with local units of government and economic development organizations to encourage job growth and investment,” said Julie Sloat, AEP Ohio president and chief operating officer.

While the Recleim announcement means economic growth for Lima, it also means money in the pockets of AEP Ohio customers. In partnership with Recleim, customers of AEP Ohio are being offered a $35 incentive for recycling their old, working refrigerators or freezers, and pick up of the appliance is free. Removing an old working refrigerator or freezer could save customers up to $150 a year in energy costs.

Recleim terms itself a “de-manufacturer,” recovering approximately 95 percent of commodity components in the old appliances it recycles while disposing of hazardous chemicals and minimizing waste. Most recyclers only recover about 60 percent of a product, according to Douglas Huffer, president and general manager of Recleim.

“Where a recycling manufacturer will take small things, and make big things, we take big things, like refrigerators, and make small things. We take it back into the individual steel and copper, right back to the raw material state for sale,” explained Huffer.

While the Recleim plant is under construction, the appliances collected are being shipped to the company’s flagship plant in Graniteville, South Carolina, or stored in a separate warehouse in Lima. Recleim plans to have employees in place at the new Lima location in September.

For Mayor Berger, the new employment opportunities are a testament to economic revival not only in Lima, but across northwest Ohio. “All of our manufacturers are doing very well, the vitality of our local industries is very high,” Berger said. “Recleim’s entry into our community into and northwest Ohio is an indication of manufacturing’s growth.”

For AEP Ohio customers interested in the appliance recycling program, visit https://www.aepohio.com/save/residential/programs/ApplianceRecycling.aspx.

For more information on Recleim’s next generation recycling process, visit http://www.recleim.com.

AEP CEO Nick Akins (right) appeared on CNBC’s “Mad Money with Jim Cramer” program April 27 to discuss a number of issues related to AEP and the energy industry.

Nick Akins, AEP chairman, president and chief executive officer, appeared on CNBC’s “Mad Money with Jim Cramer” program April 27 and discussed first quarter earnings results and the company’s strategy for the future.

View the video.

Cramer opened the interview by questioning those who are saying that business is weak in this country. He asked Akins what he is seeing in the energy industry.

“Even though load continues to be pretty much the same, when you look at the underlying fundamentals, you’re seeing oil and gas activity pick up, you’re seeing mining activity pick up and automotive activity is in there, as well,” Akins said. “Primary metals are picking up, as well, and it’s been awhile since we’ve seen that, so the underlying fundamentals are beginning to progress very positively and we’re watching them very closely.”

Turning to President Trump’s plan to put more Americans back to work, particularly in coal mining and other industries, Cramer asked what that might mean specifically for U.S. utility companies, which tend to be scrutinized for polluting the environment.

“I think you are going to see a work force issue where you are moving from one skill set to another,” Akins answered. “The effect of the Trump administration’s focus will be to continue the operation of fully-controlled coal units. I think you will continue to see those operate, but at the same time you are seeing a massive shift to a more balanced energy portfolio, so you are going to see natural gas continue to pick up — which emits about half the carbon as coal — as well as renewables and other types of applications on the grid that are related to big data analytics. And of course transmission, which is a key optimizer. So you’re going to see all those resources continue to branch out, and they will reduce carbon emissions significantly.”

Cramer also noted that AEP doesn’t base it’s key strategic investment decisions on which administration currently occupies the White House.

“You’re right, Jim,” Akins acknowledged. “We’re a long-term business, but really the context of those decisions today are made upon, ‘OK, what are those capital investments that need to be made relative to coal?’ And if they are large capital investments, you are evaluating that against other options, and those other options are cheaper at this point in time. So the movement is toward a re-balancing that is less coal and more of other types of resources.”

With a strong balance sheet and solid strategic plan, has AEP considered any types of merger or acquisition to further strengthen it’s position in the industry?

“I think we have a higher threshold, and our threshold is internally driven,” Akins replied. “We’re spending $6 billion in capital every year, and our next three-year plan is $17.3 billion, and $9 billion of that is on transmission. We have the largest transmission system in the country, so from an indigenous growth perspective, to invest at 11 percent ROE (return on equity) in transmission is much better than making an acquisition unless it’s truly strategic and really makes sense for our shareholders — without having to pay a premium and that kind of thing.

“That being said, we’re obviously very focused and continue to be engaged from an M&A (merger and acquisition) standpoint to understand what’s going on in the industry and how it maps to the strategy we have going forward,” he added, “and we’ll continue to look at those kinds of options.”

Braidy Industries Chairman and Chief Executive Officer Craig Bouchard announces plans to locate a $1.3 billion aluminum rolling mill in eastern Kentucky. Photo by Allison Barker.

(Story by Allison Barker)

ASHLAND, Ky. – In 2012 when Brad Hall joined Kentucky Power as an external affairs manager to revitalize its economic development efforts, he knew selling eastern Kentucky would not be easy.

On Wednesday, he joined Kentucky Power President Matt Satterwhite, Kentucky Governor Matt Bevin, state and local leaders and many other supporters as Braidy Industries announced the location of a $1.3 billion aluminum rolling mill in the middle of Kentucky Power’s service territory. When the mill goes online in 2020, its electricity demand is expected to be 60 megawatts.

“Braidy Industries represents one of the many important partnerships Kentucky Power is forming to bring business and jobs to eastern Kentucky,” Satterwhite said. “Economic development is at the center of our long-term strategy. When Kentucky Power and other AEP companies invest in economic development, we can help attract large commercial and industrial customers, like Braidy Industries. And when we do, our customers gain jobs, government gains taxpayers and we gain new customers.”

Braidy’s 2.5 million-square-foot mill is expected to employ 550 workers with average salaries and benefits of $70,000, as well as another 1,000 construction workers during construction, which is set to begin in 2018.

Braidy Chairman and Chief Executive Officer Craig Bouchard credited Kentucky Power and AEP in helping Braidy choose the Kentucky site for its mill.

“We have negotiated an efficient package with Kentucky Power and AEP because they wanted us in eastern Kentucky,” Bouchard said. “I believe we will have the lowest energy cost of any rolling mill producing aluminum in the United States. The competitive advantage of that is spectacular.”

Braidy seeks to become the nation’s low-cost producer of high quality auto body sheet aluminum, plate and ultra-high strength alloys for the aerospace industry. The mill will open with capacity of 370,000 tons per annum, producing series 5000, 6000, and 7000 aluminum sheet and plate products. The aluminum is used not only in automobiles, but also airplanes to make them lighter.

Satterwhite said the Braidy project is a game-changer and is the first in a long-term strategy to establish central Appalachia as a preferred region for the aerospace and automotive industry.

Soon after being named Kentucky Power president in 2016, Satterwhite devised a plan, now dubbed Appalachian Sky. The initiative’s purpose is to aggressively attract aerospace and aviation industry to AEP’s central Appalachia service region through economic development. Appalachian Sky was inspired by the intelligence and work ethic of the coal mining communities as captured in the movie “October Sky.”

The work that led to the creation of Appalachian Sky was sparked by the completion of a comprehensive regional work force analysis in AEP’s Kentucky territory. The research showed that coal miners, many of whom have lost their jobs when mines closed in recent years, have the metal-working skills that companies like Braidy Industries need. The study, which was funded in small part with Kentucky Power economic development grants, concluded that there were eight times the national average of skilled metal workers in the region.

Kentucky Power and AEP recognized an opportunity and commissioned a leading aerospace consultant to determine the viability of aerospace in Appalachia’s coal and steel country. The consultant produced a report certifying 17 counties as AeroReady in the Tri-State region of Kentucky, Ohio and West Virginia, furthering the claim that aerospace can thrive in the area.

Dr. Michael E. Porter, professor at Harvard Business School and a global expert on competitiveness and economic development, serves as a Braidy Industries board member. Porter assisted the company in assessing Kentucky’s competitive advantage as a site. Both Porter and Bouchard cited Appalachian Sky as helping make the decision to locate in eastern Kentucky.

“Eastern Kentucky has significant competitive advantages, including its proximity to the leading automotive and aerospace customers, low energy costs and a skilled and available work force for heavy manufacturing,” Porter said. “The decision to locate in eastern Kentucky will provide an opportunity for Braidy Industries and the community to work together to transform the region’s business environment as well as attract related companies.”

That economic ripple effect is exactly what Kentucky Power is banking on to boost its dwindling customer base and load. Since 2012, the company invested nearly $2 million in economic development in eastern Kentucky, including water and sewer projects, broadband expansion, industrial site development and certification, work force research and other endeavors.

“Braidy’s CEO Craig Bouchard and Governor Matt Bevin both thanked Kentucky Power and gave a lot of credit to our leadership,” Satterwhite said. “I thank our employees for all their work and support for getting to this first victory. It is a new day in eastern Kentucky and Kentucky Power.”

Todd Gordon (right) was very appreciative that his son, Josh, knew CPR and took action when he suffered cardiac arrest during a basketball game.

(Story by Erica Putt)

On April 12, Winchester Line Mechanic Josh Gordon was playing basketball at the YMCA with his father. Josh’s father, Todd Gordon, also is an Indiana Michigan Power Company employee who works in the Muncie, Ind., telecom department.

While they were playing, Todd suffered sudden cardiac arrest and had to be resuscitated.

“We played the whole first half and were starting the second half. I was running down the court, turned around and saw him fall down to the ground, so I didn’t know what was going on,” Josh said.

When Josh rushed to his father’s aide he says he was having trouble breathing.

“He quit breathing so I turned him over on his back and went ahead and started CPR,” Josh said.

He continued CPR until someone offered to take over so Josh could call his mother.  When asked where he learned CPR, Josh says he completed training at the Winchester Service Center.

“Zero Harm is important on and off the job. Without the safety culture and standard we have, and what we expect from our employees, this incident could have had a much more catastrophic outcome,” said Ed Roberts, Winchester distribution supervisor.

We are happy to report that Todd is doing well and will soon be able to resume normal activities.

Scott Carney (left) of Flint Creek Power Plant with Wendy Jackson, agriculture teacher at Gentry High School, at the power plant’s tree farm.

(Story by Peter Main)

The tree farm at Flint Creek Power Plant in Gentry, Ark., got a springtime burst of new growth when local high school students recently planted 1,000 trees into containers.

The trees are destined for transplant to riparian areas to stabilize stream banks, help retain nutrients and improve water quality. Flint Creek hosts the tree farm as part of the company’s support for the Illinois River Watershed Partnership. The watershed covers parts of Arkansas and Oklahoma. It includes Little Flint Creek and SWEPCO Lake, the plant’s cooling reservoir.

Scott Carney, Flint Creek Plant environmental coordinator, leads the tree farm effort and also serves on the IRWP board of directors.

Led by teacher Wendy Jackson, about 85 students from five agriculture classes at nearby Gentry High School helped renew the stock in the tree farm. They planted the seedlings and cuttings in tall, compact containers that are placed in metal racks built by Flint Creek employees.

Carney said the new containers take up less space and should grow better than larger round containers often seen at nurseries. The 1,000 seedlings fit in about the same space as 500 trees in the larger containers last year, which makes watering by the tree farm sprinkler system more effective.

Species planted April 15 included Chinkapin Oak, Persimmon, River Birch, Sycamore, PawPaw, Sandbar Willow cuttings, Smooth Sumac, Buttonbush , Roughleaf Dogwood, Witchhazel and Baldcypress.