Connecticut Retirement Plans and Trust Funds led a group of investors that were prepared to put a resolution to force the report up for a vote at the next shareholder’s meeting. However, with AEP’s decision, the plan to introduce the resolution has been withdrawn, according to an AEP news release.
The Connecticut pension plans control 161,670 shares of AEP stock.
The report to be issued by AEP will “assess and report to shareholders the potential impact of the company’s actions to improve the environmental performance of its power plants and keep those plants cost-competitive,” the company said in the release. An ad hoc subcommittee of independent directors will conduct the assessment. AEP promised to release the report on its Web site by September 1.
AEP’s decision represents an about-face for the Columbus, Ohio-based company. Last year, investors raised a similar proposition at the annual shareholders meeting that was opposed by AEP’s management.Last year’s resolution stated that AEP needed to address a scientific consensus that carbon dioxide produced by power plants contributes to global warming. The resolution asked the company to analyze the costs of reducing emissions, but also weigh the benefits.
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