AEP Announces Organizational Changes

Zebula to head energy supply; Sloat to become treasurer

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Dec 14, 2012, 08:30 ET

COLUMBUS, Ohio, Dec. 14, 2012 /PRNewswire/ -- American Electric Power (NYSE: AEP) has announced organizational changes as part of a continuing corporate-wide repositioning effort, according to Nicholas K. Akins, AEP president and chief executive officer.

"We are redefining our organization to better address the business challenges we face today and potential opportunities in the future," Akins said.

Charles E. Zebula, currently treasurer and senior vice president – Investor Relations, will become executive vice president – Energy Supply, a new position reporting to Robert P. Powers, executive vice president and chief operating officer. Julie Sloat, currently vice president – Regulatory Case Management, will become treasurer and senior vice president. Sloat will report to Brian X. Tierney, executive vice president and chief financial officer.

Zebula will be responsible for separating AEP Ohio's generation from the company's regulated fleet by Jan. 1, 2014, as required under Ohio's move to enhance electric market deregulation.

"AEP is a regulated electric utility, with the vast majority of our operations and earnings tied to rate-regulated electric utilities," Akins said. "But Ohio's move to enhance electric market deregulation will shift much of AEP's Ohio generation into a separate competitive business. This is an important change for AEP. We're confident that Chuck's financial experience in leading AEP's treasury functions, combined with his prior operational experience running fuel procurement and our river operations business, makes him the right person to manage the transition and ensure it is seamless."

Functions reporting to Zebula will include Commercial Operations; AEP Energy, the company's retail marketing unit; AEP Energy Partners, the company's wholesale power marketing unit; and AEP River Operations, the company's dry-bulk barge transportation subsidiary.

Sloat will replace Zebula as AEP's treasurer.

"Julie is an obvious choice to replace Chuck as treasurer," Akins said. "She's a familiar face and name for bankers and investors from relationships she developed earlier in her career while in treasury and investor relations."

The changes are effective Jan. 1, 2013.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.