Investments Support Local Growth
Between 2019 and 2023, AEP will invest nearly $33 billion in capital to modernize the electric power system. Most of those investments will be directed to transmission and distribution. This magnitude of investment has significant positive impact on our communities. In 2018 we acquired a new software tool called IMPLAN, to help us more accurately measure the economic impact of our capital investments. We ran a model looking at the 2019-2023 investment plan to identify direct and indirect benefits to communities where this will occur. Here’s what we learned:
- Our capital investment will create or support approximately 40,000 jobs within our service territory per year over the course of our investments. The majority of these jobs are in construction, and employed directly by AEP or through contractor or vendor relationships. The additional jobs created are in supply chain and retail sectors.
- The total labor income generated is over $2 billion annually.
- The investment will impact the gross regional product by $3 billion annually.
We are reaching out and meeting with stakeholders across our service territory to help them understand why the magnitude of these investments is not only warranted but imperative to the future stability and resilience of the grid and the communities we serve. By investing capital to modernize the system, we are actually lowering customer bills in the long run because we are mitigating the future need for costly repairs when old equipment fails.
The bottom line is that the investments we are making in the grid make it more reliable, resilient and secure, and have significant positive local benefits through job creation and economic growth.