COLUMBUS, Ohio, Oct. 9, 2002 — American Electric Power (AEP) has dismissed five employees involved in natural gas marketing and trading after the company determined that they provided inaccurate price information for use in indexes compiled and published by trade publications.
The company discovered the inaccuracies during an internal review of its trading activities. The market indexes published by trade publications are compiled using trade data voluntarily provided by a variety of industry sources. The company cannot determine if the inaccurate data had any impact on the published indexes.
Prior to learning about the reporting of inaccurate data, AEP had instituted measures to require that all price information provided for use in market indexes be verified and reported by the office of AEP’s chief risk officer.
“We did not approve and we do not condone this sort of activity,” said Eric van der Walde, executive vice president – AEP Energy Services. “We are serious about ethical business practices and took action immediately after discovering this activity.”
American Electric Power is a multinational energy company with a balanced portfolio of energy assets. AEP, the United States’ largest electricity generator, owns and operates more than 42,000 megawatts of generating capacity in the U.S. and select international markets.
AEP is a wholesale energy marketer, ranking among North America’s top providers of wholesale power and natural gas with a growing wholesale presence in European markets. In addition to electricity generation, AEP owns and operates natural gas pipeline systems, natural gas storage, coal mines, and the fourth-largest inland barge company in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s wires. The company is based in Columbus, Ohio.