Climate Policy Engagement Analysis
Climate Policy Engagement Overview: American Electric Power (AEP) exhibits policy engagement that is broadly misaligned with policy pathways for delivering the temperature goals of the Paris Agreement. The company takes mostly negative positions on US climate policy, with evidence of advocacy at the federal level and across several states, including Ohio, Virginia, and West Virginia. AEP continues to advocates for the long-term role of fossil fuels, as evidence by its strategic opposition to the Biden administration’s power plant carbon standards. AEP is a member of several industry groups with highly negative climate policy engagement, including the US Chamber of Commerce.
Top-line Messaging on Climate Policy: AEP appears to have minimal top-line messaging on climate policy. In its 2024 sustainability report published in July 2024, AEP seemed to emphasize concerns with the technological feasibility and economic viability of achieving net-zero GHG emissions. AEP does not appear to have disclosed a clear position on the Paris Agreement in recent years, stating only in its 2024 sustainability report that its operational net-zero targets align with the goals of the Paris Agreement.
Engagement with Climate-Related Policy: AEP appears to engage on climate-related policy with a mix of positive and negative positions, including at the state level. In Ohio, for example, subsidiary AEP Ohio submitted January 2024 testimony and May 2024 testimony in opposition to House Bill 197 toward piloting a community solar program in the state, while previously providing April 2023 testimony in support of legislation that would incentivize utilities to develop energy efficiency programs. In West Virginia, subsidiary Appalachian Power also appeared to oppose community solar legislation, as reported by a Charleston Gazette-Mail article in November 2022. According to a June 2023 AP News article, subsidiary Appalachian Power also appeared to emphasize the costs of Virginia’s participation in the Regional Greenhouse Gas Initiative.
Positioning on Energy Transition: AEP demonstrates mostly negative positions on the energy transition, with a focus on maintaining a prominent role for fossil fuels. As stated in its Trade Association Climate Report published in April 2023, the company advocates for policies that support “clean coal” and fossil gas. At the federal level, AEP strategically opposed the Biden administration’s power plant carbon standards, engaging frequently across the 2022-2025 time period both individually and via coalitions. This opposition includes a legal challenge to the finalized rules for existing coal- and new gas-fired power plants via an August 2024 emergency application for immediate stay and a May 2024 petition for review under the ad hoc coalition Electric Generators for a Sensible Transition. Also in May 2024, then-interim CEO Ben Fowke provided testimony before the US Senate Committee on Energy & Natural Resources that criticized the finalized rules, and AEP submitted comments that advocated for the Environmental Protection Agency (EPA) to delay proposing a regulation to address GHG emissions from existing gas-fired power plants. Previously, AEP had strongly opposed the proposal during its August 2023 comment period, including in individual comments, comments with the Power Generators Air Coalition, and joint comments with the Midwest Ozone Group.
AEP similarly promotes fossil fuel use at the state level. For example, in its 2025 sustainability report published in May 2025, AEP stated support for the continued use of coal in West Virginia, without mention of CCS. Meanwhile, as reported by a November 2024 Bloomberg article, current CEO Bill Ferhman appeared to endorse state-level policy that promotes a long-term role for fossil gas and coal in the energy mix. In Ohio, subsidiary AEP Ohio submitted multiple pieces of testimony between February 2025 and April 2025 in opposition to legislation proposing to repeal the existing subsidies for the Ohio Valley Electric Coal (OVEC) coal plants.
Industry Association Governance: AEP published an industry association review in April 2023, however the review lacks transparency on the member industry groups’ climate policy engagement activities. AEP left the American Legislative Exchange Council in 2016 and America’s Power in 2019. However, the company appears to remain a member of the National Association of Manufacturers and disclosed participation on the ESG Working Group within the US Chamber of Commerce, two groups which share a history of strategic opposition to climate policy. AEP is also a member of Business Roundtable. The company's former CEO Julie Sloat served on the Board of Directors for Edison Electric Institute, however it is unclear if the company still retains board membership following Sloat's departure as CEO in February 2024. Both Business Roundtable and Edison Electric Institute continue to advocate for the long-term role of fossil gas.
A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2025.