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SECOND PHASE OF AEP SERVICE CORPORATION RESTRUCTURING TO AFFECT ABOUT 100 POSITIONS

 COLUMBUS, Ohio, Nov. 1 /PRNewswire/ -- Preliminary results of the second phase of the three-phase process to restructure and streamline operations of the American Electric Power (AEP) Service Corporation have been announced by company officials.
 Approximately 100 job position reductions will result from the second phase of the restructuring of the AEP Service Corporation, with about half of that total involving positions filled by contract employees.
 The Columbus-based Service Corporation is the management and technology arm of the seven-state American Electric Power (NYSE: AEP) system, and provides engineering and other specialized services to AEP's seven operating companies in seven states.
 The job reductions identified by the restructuring study are based on total employees as of Nov. 1, 1992, when the process began, according to Carl A. Erikson, overall project manager. Erikson is a vice president of the Service Corporation and executive assistant to E. Linn Draper Jr., AEP chairman, president and chief executive officer. The actual number of employees to be affected by the job reductions has been lessened since then by transfers, retirements and other attrition, he said.
 Groups that were studied in Phase II of the Service Corporation study included controller's, treasury, tax, information systems, administrative services, internal audits, finance, system transactions and rates.
 In June, AEP announced that restructuring measures resulting from Phase I of the study would call for the eventual reduction of as many as 500 positions in the Service Corporation. Of those 500 positions, about 25 percent were filled by contract employees.
 The restructuring program also involves the operational combination of AEP's two Ohio operating companies, Columbus Southern Power Company and Ohio Power Company. Job reductions from the first two phases of the Columbus Southern/Ohio Power study total approximately 350. That actual number has also been lessened by transfers, retirements and other attrition.
 Phase III of the program is presently underway and is expected to be completed by the end of 1993. The program's conclusions are expected to be predominantly implemented by the end of 1994.
 "The changes that will result from the three phases of the restructuring study will better position our companies to deal with the many competitive pressures evolving in the energy marketplace," Erikson said.
 -0- 11/1/93
 /CONTACT: Luke M. Feck, senior vice president, Public Affairs, of American Electric Power, 614-223-1650/
 (AEP)


CO: American Electric Power ST: Ohio IN: UTI SU: RCN

AR -- CL027 -- 9248 11/01/93 14:59 EST
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Date:Nov 1, 1993
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