E. Linn Draper Jr.
Who Is E. Linn Draper Jr.?
Ernest Linn Draper Jr. is the former chair, president and chief executive officer of American Electric Power (AEP), a public utility holding company situated in Ohio that serves 11 states.
Linn turned into the company's leader in 1992 and announced his retirement in April 2003. He surrendered his position as president and CEO toward the finish of 2003, and surrendered the chair job in 2004.
Linn assumed control just as energy deregulation was occurring. He drove the merger with Central and South West Corp, a deal that was approved in mid-2000. Linn consoled investors of the company's strength in the wake of the Enron scandal, and stayed with the above water through the recession of 2001-2002.
E. Linn Draper Jr. Memoir and Career
Ernest Linn Draper Jr. was brought into the world in 1942 in Houston, Texas, to Ernest Linn Draper and Marcia L. Saylor. He went to Williams College where he earned a B.A. in 1964, and Rice University where he earned a B.S. in Chemical Engineering in 1965. Draper then earned a Ph.D. from Cornell University in 1970.
He instructed at the University of Texas at Austin from 1971 until 1979. He then, at that point, burned through 13 years at Gulf States Utilities and worked his direction into senior management.
E. Linn Draper's Career in the Energy Industry
In 1987, Draper joined AEP. He turned into its leader and chief operating officer in 1992. He then, at that point, became chair, CEO and president in 1993.
The section of the Energy Policy Act of 1992 liberated power companies, which lost their status as legal restraining infrastructures. After the law produced results, power companies had the option to decouple power generation and power sales, considering some to zero in on trading (like Enron) and others to zero in on generation.
Enron Scandal and the Aftermath
Draper zeroed in on wholesale power generation and pared down the utility's cost structure to stretch out beyond what were viewed as industry trends. He likewise tried to keep a responsible balance sheet, which served the company well in the repercussions of Enron's collapse and greater examination on the energy industry.
After Draper's changes, industry analysts gave AEP the all unmistakable. In its 2003 annual report, AEP reported net income of $110 million, contrasted and a loss of $519 million the year before. The company's share price increased 11.6% year on year.
Draper likewise established his reputation as a reliable CEO and steward of shareholder value, which in the wake of Enron was high commendation.
Blackout of 2003
On August 14, 2003, the northeastern United States and parts of Ontario and Quebec experienced its biggest blackout ever, impacting an estimated 50 million individuals. The blackout was reportedly brought about by a product bug at FirstEnergy of Akron, Ohio. The bug kept engineers from rearranging the energy load on overloaded lines. What might have been a small neighborhood blackout transformed into a major emergency for a large number of individuals living in Ohio, Michigan, New Jersey, Connecticut, Massachusetts, Vermont, Ontario and Quebec.
Draper's investment in infrastructure, especially in building cushions in AEP's grid, permitted the company to keep away from a significant part of the analysis that other utility companies experienced after the blackout. On September 4, 2003, he told the House Committee on Energy and Commerce: "All along, let me be clear, we got everything done as needs be. The AEP system held together — a point of pride for us. Our protective systems performed naturally as they were intended to perform, our administrators performed and conveyed as they ought to and our load and generation stayed in balance over the course of the day."
Retirement and Life After AEP
Linn ventured down as president and CEO toward the finish of 2003 and retired from his position as chair in mid 2004.
As indicated by his memoir at the University of Texas, Draper has cut off on the board of eleven companies listed on the New York Stock Exchange, including Alliance Data Systems (ADS) and NorthWestern Energy (NWE). Draper is an Eagle Scout and a Distinguished Eagle Scout, a qualification granted to Eagle Scouts following a quarter century of life work and a record of community charitable effort.
- Draper separated himself by directing AEP through the fallout of the Enron scandal and a major blackout in 2003.
- He is likewise an Eagle Scout and a Distinguished Eagle Scout for his rousing life work and his dedication to community chipping in.
- Ernest Linn Draper Jr. is the former chair, president and chief executive officer of American Electric Power (AEP).