So, this has been a normal quarter financially, but an outstanding quarter overall from an execution standpoint that sets the tone for 2018 and beyond with several rate case outcomes and settlements regarding Wind Catcher behind us, as Rush's classic rock song, Red Barchetta, which – Red Barchetta is a car, it's a two-seater Italian car – would say it's time to strip away the old debris, fire up the shiny Red Barchetta and respond with a roar. That's what I see in the excitement, the energy of our teams of employees at this company working on projects such as Wind Catcher and other technology advancements that will change the face of AEP's interaction with our customers.
To paraphrase one of the latest Rock and Roll Hall of Fame inductees, Bon Jovi, and I know this phrase will stick with you the rest of the day, we're halfway there, living on a prayer, take our hand and we'll make it, we swear. So, enjoy the ride with American Electric Power. Brian?

Greg Gordon - Evercore ISI
Good morning, guys. Several questions for you. I'll try to make them brief. First is congrats on the Wind Catcher settlement in Oklahoma. You have a couple parties on board, but you have many more that have not officially signed on. But can you give us some color around the negotiations there? And what, on the margin, you have conceded to give up in this settlement to give customer protections versus the prior deal? And what it might take to get more parties on board?
Nicholas K. Akins - American Electric Power Co., Inc.
Yeah, Greg. Obviously, a great question. We continue to try to get other parties on board. But as we said from the beginning, it was extremely important to get the industrials on board in Oklahoma. And I think by getting them on board, it certainly sets the predicate for the opportunity for the commissioners themselves to look at this and say, okay, we've got both the industrial customers and Walmart, and the customers have spoken.
Now, there are other parties, as you mentioned. And certainly, we're trying to get the Oklahoma staff engaged in this process and, certainly, the Attorney General – probably not likely to get the Attorney General on board. But others will continue to be open to that, including the Attorney General.
But at this point, though, I think it's framed up pretty well, because a lot of work's been done in the background. Our people have been working tirelessly with all these parties around the various jurisdictions to try to drive some consistency around what the risks were being taken. And a lot of it centered on the 10-year look-backs, the performance guarantees, certainly the force majeure-related provisions as well.
And it really – as we looked at it, and as I mentioned early on in our discussion, you have to – if you're going to do regulated renewables, then certainly we'll have to meet the market on what risks are being taken relative to regulated renewable investments. And we looked at it, looked at it in a lot of detail. We have a lot of, like – as I mentioned earlier, engineering and construction. We looked that in detail, the operational characteristics of particularly the generation tie (22:16), and we've come a long way in terms of the evaluation of those risks.
We were willing to take it, and the industrials were ultimately supportive. So, I think it just sets the tone for continued discussions. But as far as I'm concerned, we've put it in a very good place, and you'll note that those provisions are pretty consistent with the settlements that have been done previously by SPS over in New Mexico and Texas. And we're having discussions with the Texas parties now. So, you're starting to see, in my opinion, a coalition around what risk parameters, what the framework of a deal looks like, and I see that momentum gaining.

Steve Fleishman - Wolfe Research LLC
So, speaking of living on a prayer, I have a few Wind Catcher question. Sorry. I couldn't help. You asked for that one.
Yeah. Thank you for the Rush references, those are great. So just if I recall back last fall, you had talked about wanting decisions by April to make sure that you would have it online to get the full PTCs.
Is May-June going to be okay to be able to capture full PTCs? Like, what is the real deadline?
Nicholas K. Akins - American Electric Power Co., Inc.
Yeah, we'll be fine. Really, we have to get to a point of getting these orders in place, and then we'll cover it with our board, obviously, in our July meeting. And then once they approve it, we're off and running. So if we get it in that June timeframe, we get the orders in the May to June timeframe, we'll be in good shape.

Julien Dumoulin-Smith - Bank of America Merrill Lynch
Got it. Excellent. And then turning back to Wind Catcher real quickly, obviously, you're working every state front. To the extent to which, let's say, Texas and those negotiations aren't necessarily as fruitful here on the prescribed timeline that you just talked about, how confident are you about signing up alternatives like munis and co-ops just to be able to continue working on the project, notwithstanding clarity in Texas, shall we say?
Nicholas K. Akins - American Electric Power Co., Inc.
Julien, I really think we are going to get a result in Texas. And I think it'd be problematic during the pendency of something that's working to go sell somewhere else. So, we're feeling pretty good about the direction this all is taking and the timing of it.

Paul T. Ridzon - KeyBanc Capital Markets, Inc.
Two questions. Is there a statutory deadline in any of the Wind Catcher states, when this has to be done by?
Nicholas K. Akins - American Electric Power Co., Inc.
I don't think there's a statutory deadline, but certainly there's a business deadline. I mean, we've been very transparent about the timing necessary and the procedural schedules have been set up consistent with getting a decision on time. So, I think it's really more driven by, I guess, one of the previous questions sort of brought out, when is our drop-dead date and that kind of thing. But I can just tell you that May and June fits.

Paul T. Ridzon - KeyBanc Capital Markets, Inc.
And then some of the concessions you've made are around cost caps. Who's wearing that risk? Is it you or the contractors?
Nicholas K. Akins - American Electric Power Co., Inc.
Yeah. It's both. We have fixed-price contracts with the appropriate contingencies. And I think that that risk is being shared. And actually, this tells you a little bit about the commitment of the suppliers that we're working with. I mean, these are established suppliers that do a lot of business that we do a lot of business with. And I can guarantee a lot of homework's been done on what these operational provisions will look like, what the construction side will look like, what the supply will look like, what risks are being borne. And also even if route changes were to occur on the generation tie (38:02) that those have been discussed and (38:05) as well. So, we feel very good about where our suppliers sit at this point.

Nicholas K. Akins - American Electric Power Co., Inc.
Yeah. So, we are in the middle of what I would call an M&A transaction without a premium. It's called the Wind Catcher. And so when we look at the strength of the balance sheet, certainly we'll be looking at the financing needs for Wind Catcher and that's a $4.5 billion transaction. So, that's where our thoughts are at this point.

Ali Agha - SunTrust Robinson Humphrey, Inc.
Thank you. Good morning. Nick, to clarify, as you're looking at the four states for approval in Wind Catcher, is it fair to say just given where we are that Oklahoma probably is the most challenged of the four? And related to that, could you theoretically complete the project if the other three states say yes and Oklahoma was to say no?
Nicholas K. Akins - American Electric Power Co., Inc.
Yes. So, on the first point, I would agree with you. Oklahoma has been the most challenging. And really, with the ALJ order there, it made even more of a challenge for the commissioners to really take a look at it from a positive standpoint. But I really believe they will at the end of the day and – because they obviously look at much broader issues. And so, with that said, I think as far as Wind Catcher is concerned, we intend on this project being for those four states and certainly the FERC customers. There's some FERC customers too that are involved. And if one were to fall out, we're really – as I said, I mean, I think we're at a good place in terms of the transition of getting this thing across the finish line. And at this point, we really aren't entertaining the notion of going forward with the project without one of the jurisdictions. I really don't see that happening.

Paul Patterson - Glenrock Associates LLC
Just sort of quickly follow up here on Wind Catcher. Why is it that the – what are the key issues, I guess, sort of maybe stopping the OCC staff and others from coming on board?
Nicholas K. Akins - American Electric Power Co., Inc.
Your guess is as good as mine. I think, obviously, the ALJ looked at it from a procedural basis it seemed like to me. But we're pretty convinced we did file under the right provisions under Oklahoma law. But obviously, we'll continue with discussions with certainly the Oklahoma staff. And I think – I really do believe we put provisions in place with the industrials that should benefit that discussion with them. Obviously, to have that kind of company of the customers certainly would help from a policy side and from a staff side to really take a hard look at this. So, the verdict's still out on that and we'll continue those discussions.

Paul Patterson - Glenrock Associates LLC
Okay. And then, in Oklahoma, there's this tax issue on Wind. I guess we expect it's intertwined with school funding and there was something that passed the House yesterday. And I was just wondering how would that work with respect to the settlement or with respect to the project, or does it have any impact. Can you give us sort of a sense about that?
Nicholas K. Akins - American Electric Power Co., Inc.
Well, it won't have any impact on the project. And it got poured out of the legislature yesterday. So, we don't see that happening.
Paul Patterson - Glenrock Associates LLC
I mean, I thought it passed the House is what I just saw.
Nicholas K. Akins - American Electric Power Co., Inc.
No.
Paul Patterson - Glenrock Associates LLC
The provision for the tax credit, I thought it was removed. But we can talk about it later. But what you're saying is you don't see any activity on that whatsoever, is what you're...?
Nicholas K. Akins - American Electric Power Co., Inc.
No.
Paul Patterson - Glenrock Associates LLC
Okay. So if something like that did happen, though, since it's been sort of debated and what have you, and the school funding issue, in terms of the settlement, how would that – would that be something that you guys would absorb or would that be something that – how would that be treated if there was subsequently some sort of impact on wind generation in Oklahoma as a result of something that the state legislature may or may not do in the future?
Nicholas K. Akins - American Electric Power Co., Inc.
Yes. So, there is that risk, but not likely. And the state tax credit wasn't assumed in the Wind Catcher economics, to begin with. So if something were to occur, it wouldn't have any effect.

Marketing to Mayberry: Communicating with Rural America

Communications and marketing outreach in small town America requires entirely different tactics than those used with larger more metropolitan communities. Join this conversation to learn some of the pitfalls to avoid and the strategies to deploy when reaching out to small communities. Attendees will learn to prepare for the challenges of engaging a rural setting, communicate in a conversational tone rather than corporate tone, identify and engage credible spokespersons in rural communities and understand which communications and marketing tactics to utilize.

Regarding the tone of the show, Griffith said that despite a contemporary setting, the show evoked nostalgia, saying in a Today Show interview: "Well, though we never said it, and though it was shot in the '60s, it had a feeling of the '30s. It was, when we were doing it, of a time gone by."

Going BANANAs with NIMBYs – Best Practices in Dealing with Community Based Opposition Groups

Increasingly, organizing public participation opportunities means having to handle disruptive influences from community-based opposition groups - BANANAs (Build Absolutely Nothing Anywhere near Anything/Anyone) and NIMBys (Not In My Back Yard). This presentation will discuss experiences at Southern California Edison and how the company has adapted to this new business environment. Southern California Edison is currently experiencing one of the largest infrastructure capital investment programs in company history. Driving this are multiple factors, including California’s ambitious renewable energy goals and the need to replace aging infrastructure that was constructed during the post-World War II boom. As a result, the opportunity for community based opposition groups to develop has increased significantly. Recent advances in technology have made it easier for community-based opposition groups to organize and, more importantly, to strategize. With the opportunity cost of starting and participating in such groups constantly decreasing, it is important for public participation practitioners to have a healthy understanding of how such groups are motivated and how to manage them effectively.

The discussion will provide the audience with best practices on dealing with community- based opposition groups as well as tips on how to prepare internal, technical subject matter experts to effectively handle emotionally charged situations. These best practices are based upon the experiences of Southern California Edison’s local public affairs department.

Lawlor confirmed that these sessions did happen at the Electronic Utility Consultants, Inc. (EUCI) Eighth Annual Public Participation for Transmission Siting conference, held in Houston, Texas in January, but it was not organized by CLE. Lawlor said that his group did not participate in the classes after learning of the class titles. “The folks that came up with the titles were from other states,” he said. “Marketing to Mayberry was by somebody from Washington. We asked to participate and… as soon as we found out about those names we withdrew from the conference and withdrew from participation in the organization going forward.”

Keynote Presentation: Lessons Learned - Clean Line Energy discusses challenges during Public outreach Process
Clean Line energy will discuss the public engagement challenges that are inherent when developing and building new large infrastructure projects. How do we overcome these challenges and work to ensure that our stakeholders feel they are informed and part of the process, each step of the way? He will discuss the lessons learned and some of the challenges faced in his career developing transmission projects across multiple states.
- Jimmy Glotfelty, Executive Vice President, Clean Line Energy

Case Studies: Understanding ins-and-outs of utilizing social media for Public engagement

In a time where social media is one of the most common forms of communication, it is important to understand when it is appropriate to utilize it to engage the public and stakeholders during the transmission siting process. It is crucial to understand when to use it as a main form of communication or as a supplementary form of communication - and who you can expect to reach, and how. This presentation will use and demonstrate how social media is currently being used as an integral portion of a public outreach and communications plan.
- Louisa Kinoshi, Associate, Clean Line Energy

...the new results are a clear sign that Americans support cleaner, renewable power and that it has carried over to the distribution of that power through their own backyard.

High-voltage transmission lines generate some of the most adamant NIMBY (Not In My Back Yard) opposition in the country. That such a large percentage of people are willing to allow green lines in their community says a lot about the awareness and importance of renewable energy and climate change issues in addition to the education efforts undertaken by the renewable energy industry.

Polling indicates the public’s feelings about a number of various topics on any given day. But it can also be misleading if viewed out of context — especially when it comes to land use issues.

How is it, for example, that most Americans support wind energy in general, but emotive opponents can block transmission lines delivery wind energy or wind farms in some local communities?

So, the jury’s in, right? Everyone loves renewable energy projects. But wait.

But the emotional opposition appears to fly in the face of surveys and polls showing national support for clean energy generation and transmission. What’s going on? Do these polls and surveys lack credibility? No. In fact, they are spot-on in terms of reflecting how Americans feel about renewable generation and distribution projects and how they may positively impact our communities given the perceived global threats of climate change, greenhouse gases and negative impact to wildlife over time. Today, based on a solid campaign by climate change advocates, the renewable energy industry, the current Obama administration and constant media pounding, the threat to our economy and the environment posed by carbon-emitting generation sources is very real and frankly easy to grasp. The arguments have been made and, let’s face it, many Americans are buying in.

But it’s easy to support a wind energy project without a real wind turbine or transmission line literally staring you in the face. That’s where rational thinking ends and passionate “defense of the community” (or defense of the children for that matter) campaigns begin.

...shop for a home in a community of interest and share the rumor of a new 765 kV transmission line going across the property down the road, in front of the view of the mountain range. What’s the survey say then? Chances are you may not find majority support, even from residents who responded in the poll you fielded yesterday.

Perhaps at best, polling identifies the size of the silent majority you have on your side when they are under no local threat of changing their daily lives. Winning hearts and minds in a poll won’t necessarily win you a permit at town hall.

Renewable energy is great in our public opinion, just not when it gets in the way of our personal point of view.

Grant authority to obtain rights-of­ way for electricity transmission lines with the goal of creating a reliable na­tional transmission grid. Similar au­thority already exists for natural gas pipelines and highways.

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I--
I took the one less traveled by,
And that has made all the difference.

"One landowner came with a plastic sack and took about a two-inch width of slices of ham. I looked at him and he said, 'I've got cats,'" Nelson said. "Everybody else was saying, 'We might as well eat. That might be all we get.'

No person or persons, association, companies or corporations shall erect poles for the suspension of electric light, or power wires, or lay and maintain pipes, conductors, mains and conduits for any purpose whatever, through, on, under or across the public roads or highways of any county of this state, without first having obtained the assent of the county commission of such county therefor