CONNECTIONS

The mayor of Caguas, Puerto Rico, greets I&M crews assisting with hurricane restoration efforts.

LETTER FROM THE PRESIDENTWhen I look back at the progress achieved and challenges addressed at Indiana Michigan Power over the past few years, I see the faces of dedication and commitment behind each success.

Our employees’ dedication to you, our valued customers, is the driving force behind everything we do as we provide you reliable, affordable energy. Our energy professionals are dedicated to the environment, using solar panels, wind and water to generate energy. Two-thirds of I&M’s generation in 2017 was emission-free. Our employees live and work in the same communities as our customers, and are dedicated to serving and improving the quality of life in those communities. Just a few examples include:• Demonstrating safety around electricity to students in Watervliet, Mich.• Helping with painting and other projects at the Girl Scouts camp near Fort Wayne as part

of the 2017 United Way Day of Caring.• Leading fun and educational activities at the annual Earth Day celebration at I&M’s

Honey Creek Farm, adjacent to the Rockport Generation Plant.• Providing more than $1.75 million in support for charitable nonprofit and economic

development organizations and initiatives.

In addition, the American Electric Power Foundation contributed nearly $1 million to nonprofit agencies in our service territory.

I&M’s team of customer service and technology professionals are committed to innovative and convenient ways to help you manage and be more informed about your use. Examples include:• Our IM Home “smart” thermostat and energy use program.• Our new mobile application.• I&M On the Go Mobile Alerts that notify you of the status of outages and issue

billing reminders.• Our reformatted, easier-to-read bill. When bad weather hits, line workers and employees throughout I&M are dedicated to restoring power, not just in South Bend, Benton Harbor or Muncie, but also helping customers served by other utilities in Georgia, Texas – even Puerto Rico.

Employees of I&M are committed to putting safety first, protecting public safety and watching out for each other as they work to bring energy to your homes and businesses.

Yes, I&M is a key utility company providing power to homes and businesses 24/7. I&M is also a team of more than 2,000 people dedicated and committed to serving you with boundless energy.

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I&M is more than just an energy company. We live in the areas we serve and are passionate about helping our communities thrive. As a company, I&M is a financial partner to many local organizations across Indiana and Southwest Michigan. As people, our employees volunteer for education, community projects and more.

One of our strongest partnerships is with the United Way. In 2017 we were honored with the Allen County United Way’s Spirit of Giving Award, which recognizes a company that achieves significant advances in its

United Way campaign and has outstanding volunteer leadership and participation with the entire community.

All our districts hold an annual giving campaign for local United Way chapters. You will also find employees pitching in during days of caring and service. Whether donating, raking leaves for the elderly, painting buildings or clearing fallen trees from a Girl Scouts’ campground, the people of I&M never hesitate to help.

“Indiana Michigan Power is a tremendous partner in the community.” - David Nicole, President and CEO of United Way of Allen County

In addition to the United Way, we work with Habitat for Humanity, Junior Achievement and with many more organizations to promote health and human services, the arts and STEM education. It is our goal to help build a better community for everyone. By giving back and working together, we can improve the quality of life for many people now, while setting up the next generation to be successful.

COMMUNITIES

Meet Jeff

Jeff Sauter is a fleet mechanic and has been with I&M for 10 years. Most days he keeps our trucks running smoothly, but he’s a familiar face around the area and one of our most active volunteers.

Jeff gives back at nearly every opportunity. You can find him building walls with Habitat for Humanity, leading teams at the United Way Day of Caring, planting trees for the Great Tree Canopy Comeback and more.

Connected to

4Clockwise: I&M employees assist at Allen United Way Day of Caring, Habitat for Humanity, and the Southwest Michigan United Way Day of Action

FAMILIESConnected to

Meet Hiawatha

Hiawatha Satterwhite is a meter operations supervisor in South Bend. She has been with I&M for 34 years demonstrating her strong leadership, her endearing personality and her love for her family.

Hiawatha and her family have a personal connection to the AEP Foundation. A $25,000 donation helped finance the Beacon Children’s Hospital, replacing Memorial Children’s Hospital, in South Bend. One of the rooms inside the hospital is named after Hiawatha’s grandson, William Rayjohnn Green.

William was born prematurely at 22 weeks, weighing just one pound. The care William received in the pediatric intensive care unit at Memorial Children’s Hospital, helped him survive for four years until his passing in 2015.

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The AEP Foundation is one more way we are connected. I&M and AEP share the same goal:

“To support and play an active, positive role in the communities where we live and work.”

Created in 2005, the AEP Foundation supports that goal, and is responsible for many of the largest philanthropic efforts of our company. The AEP Foundation works with requests of $15,000 or more, and in 2017 alone we presented hundreds of thousands of dollars on their behalf.

Our role is to help organizations make a case for AEP Foundation grants. The four focus areas of eligibility are:

1. Improving lives through education from early childhood through higher education.

2. Providing basic human services in the areas of hunger, housing, health and safety.

3. Protecting the environment.

4. Enriching the quality of life in our communities through art, music and cultural heritage.

Clockwise: I&M accepts Thank You plaque from the United Way, I&M at Leo Jr/Sr High School CEO Day, AEP Foundation grant presentation to Mosaic

I&M is connected to you 24 hours a day, seven days a week, and we take that responsibility seriously. We’re working on many innovative projects for the future, but good customer service means focusing on improving service for you, now.

Crews work every day to improve and maintain our system, and we’re ramping up efforts. Our Building the Future plan calls for spending more than $175 million on distribution infrastructure improvements in 2018 and upgrading transmission lines all across our service territory.

Our main goal is to prevent outages before they occur. To that end we’re tackling the largest cause of outages - trees - by increasing our trimming efforts significantly. To reduce weather-related outages, we’re replacing aging and vulnerable poles and lines. New and upgraded substations will provide a more reliable supply of power and allow for future growth.

We are dedicated to improving reliability for you.

Reliability work planned for 2018:

YOUConnected to

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Meet Stacy

Stacy Lawrence, a 13-year I&M veteran forester, serves customers in a number of ways. As she oversees tree trimming and clearing work in the Muncie/Marion area, Stacy works to eliminate safety hazards posed by trees growing into wires. Stacy has countless conversations with our customers, explaining which trees need be trimmed, which ones can remain untouched and offering alternative choices of tree species to protect the environment as well as public safety.

“The most rewarding part of my job is seeing a project go smoothly from start to finish, eliminating safety hazards and satisfying our customers,” Stacy says.

Replace ~1,400 poles

Rebuild 20+ miles of overhead lines

Rebuild 12+ miles of underground lines

Build multiple substations

30+ Current transmission projects

FACT PULLOUT: AEP owns the nation’s largest transmission grid and most 765kV of all utilities.

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CUSTOMER SERVICEConnected to

Meet Jill

Jill Beasley is a customer operations lead in our Customer Solutions Center. She has been providing excellent customer service for 20 years.

It can be a challenging career, but Jill is passionate about working with others and providing the best experience possible.

“I love people, and that’s why I do this.” Jill said. “There are many different gifts and talents. I don’t sing or play musical instruments, but I’m good with people. I started my first job when I was 13 and have been working in customer service ever since.”

Connecting with customers means serving people the way they want to be served. Our customer service operations extend beyond our award-winning call center. We have multiple platforms and services available to serve customers in the ways they want to be served.

Our newest service is the customer-friendly I&M mobile app, which allows you to take care of the basics for your account with just a few taps of your finger. Check your account status, report outages, pay bills and more – the power to access your account is at your fingertips. The convenient new app is still in the early stages as we continue to add features to meet customers’ wants and needs. The app is the latest feature that helps you use technology to connect with I&M. Our interactive outage map at www.IndianaMichiganPower.com/OutageMap displays outage causes, affected areas and the latest restoration estimates. Alerts via text and email are available for those who prefer to get information on

the go, and we are active on Facebook, Twitter and other social media channels. And, of course, customers can always call our Customer Operations Center at 800-311-4634 in Indiana and 800-311-6424 in Michigan. Our Customer Operations Center recently earned certification as a Center of Excellence – one of the most prestigious customer service and support industry awards.

“The certification of AEP is a direct result of its leadership’s commitment to balancing cost-effective service solutions with best-in class service performance. It is an achievement of distinction.”- Bruce Belifore, CEO of Benchmark Portal

Louie at the “Girls Who Run” 5K mascot dash

Electricity powers nearly everything in life these days. From charging cell phones to keeping internet servers running, we depend on a constant supply of energy to conduct businesses, grow the economy and take the next steps forward. We’re in an ever-changing world, and generating and delivering energy is a big responsibility - one we don’t take lightly.

62% | NUCLEAR

5% | RENEWABLES

33% | COAL

Part of that responsibility is to have the least impact possible while keeping the lights on. We generate renewable energy from 13 plants: six hydro-electric dams, four solar plants and three wind farms. When combined with Cook Nuclear, two-thirds of the energy we generated in 2017 was emission-free. And more is coming. Through 2035 we plan to add enough renewable energy to power 400,000 homes.

“I didn’t think much about being the first female plant manager until I started hearing from friends, particularly women, in the organization. Nuclear power, and specifically operations, has historically been a male-dominated field. I am proud and honored to help pave the way for other women, and will do my best to be a good role model and mentor for both women and men.” - Kelly Ferneau, Plant Manager of D.C.Cook Nuclear Plant

TECHNOLOGYConnected to

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Meet Kelly

Kelly Ferneau is the plant manager for Cook Nuclear Plant located in southwest Michigan. Ferneau is the 16th person to hold the position since plant construction began in 1960. She is the first female plant manager.

“Running a nuclear power plant is an awesome responsibility, and I want the community and employees to know that I will always put their health and safety above all else,” Kelly says.

She joined I&M in 2013 as operations manager. She holds a Bachelor of Science degree in mechanical engineering from Trine University in Angola, Indiana.

INNOVATIONConnected to

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Meet Tirthak

Tirthak Saha, a grid modernization engineer, received national recognition as one of the most promising young adults working in the energy industry when he was named to Forbes magazine’s “30 Under 30” in Energy.

The recognition as one of the top 30 people under the age of 30 in the industry came just weeks after Saha, 25, played

a key role on the team that achieved success in AEP’s Spark Tank.

“I knew I wanted to be in physics and engineering since I was about 11,” Saha said. After serving an internship with the Indian government involving a hydro-electric project, “I really started focusing on working with energy and finding ways to incorporate new technology.” he noted.

Our eyes are on the horizon. There will always be another step to take, new technologies to test and implement, and fresh ideas that will change the way we do business.

There is no room for complacency. If we’re doing our job right, you never have to think about us. That means looking ahead and solving tomorrow’s problems today. It means finding better ways to deliver electricity, and new ways to use the grid more efficiently and effectively.

We’re incorporating more and more technology beyond wires and poles to keep our system running smoothly. From monitoring voltage to remote operation and more, we’re always working to move forward.

We’re lucky enough to have a mix of experienced industry experts and bright young minds working together on creative and innovative solutions to serve our customers the way they want to be served.

A young team of I&M engineers and interns successfully pitched ideas for innovation in the electric grid at an internal competition, Spark Tank.

AEP is looking into developing their project focused on battery storage technology.

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EFFICIENCYConnected to

Meet Jason

Jason Whitman is one of I&M’s energy efficiency ambassadors. Which is great, since he visits with hundreds of commercial & industrial customers each year, collaborates with dozens of Trade Allies and gives several presentations to business forums as an Energy Efficiency and Consumer Program Coordinator. However, his favorite part is getting to meet commercial customers and the diverse products they create. “Customer visits can range from a pharmaceutical research facility, to a high pressure injection molding plant, and end with a visit to a cheese making facility,“ Jason says. “And a shared theme is the pride they demonstrate in making their products and serving their customers. In return, I strive to provide that level same level of customer service so I&M becomes their trusted energy advisor.”

Saving energy is a bright idea, and it’s easier than ever. We offer a large variety of efficiency programs for any size customer, from home weatherization and discounted LED bulbs to custom incentives and rebates for commercial and industrial customers.

One of our newer programs, IM Home, can add up to more than $500 in savings, rebates and incentives. Pair our app with a smart thermostat and you can control your home’s heating and cooling settings anywhere, anytime. Formerly a program limited to Indiana customers only, we’re pleased to announce the launch of IM Home in Michigan as well! Whether you simply want to save a little energy, or upgrade your home or business to be as efficient as possible, we have options to meet your needs.

Visit ElectricIdeas.com to see our full range of available products, rebates, checkups and more.

“Meeting our customers, understanding their energy needs and seeing their unique work environments is very gratifying. I&M customers are as diverse as the products they create, making each visit a unique experience.”- Jason Whitman, EE & Consumer Program Coordinator Sr.

I&M received the Emergency Assistance Award from The Edison Electric Institute for outstanding work assisting customers impacted by Hurricane Harvey in August 2017 and Hurricane Irma in September 2017.

Days after Hurricane Harvey slammed into Texas, 40 I&M energy experts answered the call, including line workers, foresters and safety and health representatives. Weeks later, nearly 300 I&M employees and company contractors deployed to Florida for several weeks to restore power after Hurricane Irma. Most of those employees were lineworkers and foresters.

The award is presented to EEI member companies to recognize exceptional response helping other electric companies in power restoration efforts after service has been disrupted due to severe weather conditions or other natural events. The winners were chosen by a panel of judges following an international nomination process.

Continuing in the same tradition, nine linemen from all across I&M departed for Puerto Rico in late January. This group worked in some of the most heavily damaged and remote areas of the island, in the Caguas region, for about 30 days. In late February, a second wave of linemen relieved them to continue the job.

“When disaster impacts a region, electric companies from across the nation are called on to assist impacted companies in need – mutual assistance is a hallmark of our industry. When Hurricanes Harvey and Irma struck, I&M answered both calls to help. I&M’s assistance to restore service to impacted customers is a terrific example of mutual assistance in action.”- Tom Kuhn, President of EEI

OUR NATIONConnected to

Meet Brian

Brian Lett is an underground network mechanic supervisor in South Bend. He made a name for himself as a leader within I&M since he started in 2004 as an overheard line mechanic.

Last year, Brian led a large group of fellow employees as part of the I&M effort to provide power restoration assistance days after Hurricane Harvey caused catastrophic damage in Texas.

He was tasked with organizing the important areas employees needed to focus on to safely restore power to thousands.

Brian loved being able to help restore at least one piece of daily life to those affected by Hurricane Harvey and given the chance to offer support to strangers, he would jump at the opportunity.

18Left to Right: I&M restoring power after a tornado struck East Central Indiana, I&M Crews in Puerto Rico, Hurricane Irma restoration staging area.

There is a well-known philosophy at AEP and I&M - Zero Harm. It means everyone goes home in the same or better condition than they came to work.

The success of every project is primarily judged by how safely the work was completed. Every meeting begins with a safety moment, and every work plan with a detailed brief that covers all hazards. Our number one goal each and every day is to ensure the safety and health of our employees and the public.

Utility work can be dangerous, and electricity should always be respected. We ask motorists to be aware of working crews. During major storms you’ll hear radio ads warning of the dangers of downed power lines. We post safety tips weekly to our social media pages. Representatives visit classrooms to teach students how to be safe around electricity at home and outdoors, and we have a traveling safety trailer to demonstrate the dangers of power lines.

In 2017 we invited the Boys and Girls Club to visit a service center and learn about electricity, and even partnered with multiple fire departments to teach emergency response personnel about our underground facilities and share equipment, ideas and best practices. We’re always looking to take the next step in safety.

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SAFETYConnected to

Meet Jarrod

Jarrod Wilson is our underground line supervisor and a 10-year veteran of I&M.

In 2017, Jarrod and his team took the initiative to reach out to several fire departments to conduct presentations and joint training for underground and enclosed space rescues in our manholes and vaults.

If first responders are ever needed, it is vital they know how to stay safe in our work sites, both for themselves and for the person they’re trying to help. “We don’t just talk the talk, we walk the walk when it comes to safety. We want to make sure everybody goes home at the end of the day.” Jarrod says.

“Working with fire departments was an amazing experience. It was really cool to partner with an outside entity that has the same commitment to safety as we do.”- Jarrod Wilson, Network Supervisor for I&M

Clockwise: Toby Thomas learns to climb poles, Elkhart Fire Department / I&M underground rescue training, Safety Day with the Fort Wayne Boys and Girls Club Top: Fort Wayne Fire Department / I&M underground rescue training

Electric Sales MW-hours in 2017Retail 17,946,571 Wholesale 4,962,057Total 22,908,628

Average kW-hr/year Residential9,393 Non-electric heating13,982 Electric heating

Average Cost Residential11.57 cents/kW-hour

Wholesale Customers 2017 Peak822 MW

Distribution Lines 20,471 miles

Transmission Lines 5,303 miles

EmployeesIndiana 1,062Michigan 1,352Total 2,414

Sq. Miles ServedIndiana 3,198Michigan 1,375

Counties ServedIndiana 24Michigan 6

Cities/Communities ServedIndiana 118Michigan 46

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We work closely with local, regional and state agencies for economic development. Not only do we know where the best buildings and sites are in Indiana and Michigan—we also know how to find the best tax rates and available workforce. We’re dedicated to bringing new and expanding business to the area, adding jobs and community investment for years to come. And we do so in a variety of ways:

Incentives: Our new Economic Development Rider offers a substantial discount for businesses investing or adding jobs.Learn more at: IndianaMichiganED.AEPED.com/electric-rates

Site Selection: We have unique insights and an exhaustive wealth of data points to support location decision needs. Energy Services & Support: We offer custom solutions for businesses, including distribution services, electrical contracting, substation solutions, and energy management.

Target Industries: We support businesses in a variety of industries that benefit from the best energy savings in the Midwest. Data centers, advanced manufacturing and food processing companies are growing here.

GROWTHConnected to

Meet Scott

Scott Shudick is a Customer Services Account Manager for some of our largest commercial and industrial customers.

Scott fields calls about any of his customers’ needs pertaining to I&M. Sometimes this includes helping with expansions for growing companies or energy efficiency to help our customers save. An asset to our economic development team, Scott works to help qualify potential sites and answer questions for customers.

Steel Dynamics

ArcelorMittal SA

Air Products and Chemicals

The Linde Group

Ball State University

Wal-Mart Stores

Guardian Industries Corp.

Metal Technologies

Saint-Gobain Corp.

Unifrax

I&M’s LARGEST CUSTOMERSI&M CUSTOMER BREAKDOWNResidential Commercial Industrial Other Total

406,353 53,125 3,970 1,588 465,036

110,018 17,602 921 346 128,887

516,371 70,727 4,891 1,934 593,923

Indiana

Michigan

TOTAL

OPERATING INFO

CONTACT USIndiana Michigan PowerP.O. Box 60 Fort Wayne, Indiana 46801Indiana: 800-311-4634Michigan: 800-311-6424

CONNECT IndianaMichiganPower.comFacebook.com/IndianaMichiganPowerTwitter: @IN_MI_PowerInstagram: @IN_MI_PowerYoutube.com/IndianaMichiganPower

Louie and I&M President Toby Thomas at the Three Rivers Festival Parade