Professional Documents
Culture Documents
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: the economic climate and growth in, or contraction within, our service territory and changes in market demand and demographic patterns, inflationary or deflationary interest rate trends, volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impairing our ability to finance new capital projects and refinance existing debt at attractive rates, the availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material, electric load, customer growth and the impact of retail competition, particularly in Ohio, weather conditions, including storms, and our ability to recover significant storm restoration costs through applicable rate mechanisms, available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters, availability of necessary generating capacity and the performance of our generating plants, our ability to resolve I&Ms Donald C. Cook Nuclear Plant Unit 1 restoration and outage-related issues through warranty, insurance and the regulatory process, our ability to recover regulatory assets and stranded costs in connection with deregulation, our ability to recover increases in fuel and other energy costs through regulated or competitive electric rates, our ability to build or acquire generating capacity, including the Turk Plant, and transmission line facilities (including our ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are cancelled) through applicable rate cases or competitive rates, new legislation, litigation and government regulation including oversight of energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances or additional regulation of fly ash and similar combustion products that could impact the continued operation and cost recovery of our plants, timing and resolution of pending and future rate cases, negotiations and other regulatory decisions including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance, resolution of litigation, our ability to constrain operation and maintenance costs, our ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities, changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energy trading market, actions of rating agencies, including changes in the ratings of debt, volatility and changes in markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities, changes in utility regulation, including the implementation of ESPs and the expected legal separation and transition to market for generation in Ohio and the allocation of costs within regional transmission organizations, including PJM and SPP, accounting pronouncements periodically issued by accounting standard-setting bodies, the impact of volatility in the capital markets on the value of the investments held by our pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact on future funding requirements, prices and demand for power that we generate and sell at wholesale, changes in technology, particularly with respect to new, developing or alternative sources of generation, our ability to recover through rates or prices any remaining unrecovered investment in generating units that may be retired before the end of their previously projected useful lives, evolving public perception of the risks associated with fuels used before, during and after the generation of electricity, including nuclear fuel and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, cyber security threats and other catastrophic events.
Company Overview
Company Overview
OUR FOCUS IS OUR CORE UTILITY BUSINESS OPERATIONS
Provide generation, transmission and distribution services to approximately 5.3 million customers in eleven states
Our electric assets include: Approximately 40,000 megawatts of generating capacity in 3 RTOs (one of the largest US generation portfolios with a significant cost advantage in many of our market areas) Approximately 39,000 circuit miles of transmission lines, including 2,116 miles of 765kV lines, the backbone of the electric interconnection grid in the Eastern U.S. Approximately 220,000 miles of overhead and underground distribution lines With our coal and transportation assets we: control over 9,000 railcars own and/or operate approximately 3,300 hopper barges, 62 towboats and 29 harbor boats operate one active coal-handling terminal with 18 millions tons of capacity
AEP OHIO
Columbus Southern Power Company (CSPCo)* Ohio Power Company (OPCo)*
* - Stipulation on file with the PUCO, if approved, will result in the merger of these two companies by the end of 2011
AEP TEXAS
Texas Central Company (TCC) Texas North Company (TNC)
55,000 50,000 M illions of 45,000 k Wh 40,000 35,000 30,000 2007 2008 2009 2010 YTD 3Q11 50,611 50,382 49,925 50,748 38,833
Re s ide ntial
Com m e rcial
70,000 65,000 60,000 55,000 M illions of 50,000 k Wh 45,000 40,000 35,000 30,000
200,000 180,000 63,555 64,508 54,428 57,333 44,688 M illions of 160,000 192,162 k Wh 140,000 120,000 100,000 2007 2008 Industrial Total 2009 2010 YTD 3Q11 2007 2008 2009 2010 YTD 3Q11 182,337 193,887 187,705 145,742
10%
Industrial 30.0%
11% 12% 12%
Top 10 Customers Across the AEP System By NAICS Code 331 Primary Metal Manufacturing 325 Chemical Manufacturing 324 Petroleum and Coal Products Manufacturing 212 Mining (except Oil and Gas) 322 Paper Manufacturing 326 Plastics and Rubber Products Manufacturing 311 Food Manufacturing 336 Transportation Equipment Manufacturing 211 Oil and Gas Extraction 486 Pipeline Transportation
8 Source: Form 10-K. *Note: Figures do not include Other Retail Sales
Nuclear 9%
Pumped Storage/Hydro 1%
Nat. Gas/Oil 8%
Coal/Lignite 64%
Coal/Lignite 82%
71% 26% 3%
ERCOT
* Includes approximately 30,800 miles of underground circuit miles **SWEPCO (LA) mileage does not include the VEMCO (LA) service area of approximately 6,900 miles
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13
Appalachian Power
President and Chief Operating Officer: Charles Patton
Since July 2010 Previously EVP AEP Utilities West and President & COO AEP Texas
Total Customers at 12/31/10: Residential Commercial Industrial Other Total 814,000 132,000 4,000 7,000 957,000
PRINCIPAL INDUSTRIES SERVED: Coal Mining Primary Metals Chemical Manufacturing Paper Products Pipeline Transportation
Generating Capacity
6,286 MW
Generating Capacity by Fuel Mix: Coal: Hydro/Pump: Nat Gas: 81.0% 10.8% 8.2%
6,818 50,632
Appalachian Power
CAPITAL STRUCTURE (in thousands)
CAPITAL STRUCTURE Capitalization Per Balance Sheet % of Capitalization Per Balance Sheet Debt 3,706,852 57.1% 2009 Equity Total Debt 3,689,472 56.5% 2010 Equity 2,839,426 43.5% Total Debt 9/30/2011 Equity 2,967,829 44.3% Total 6,693,898 100.0%
3.02 11.4%
3.69 15.4%
$ $ $
534,000
Operating Information*** 2010 retail electric sales in megawatt-hours 2010 firm wholesale sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak December 14
Sources: * 2010 Form 10-K ** 3Q11 Form 10-Q (unaudited) *** 2010 FERC Form 1
15
Appalachian Power
APPALACHIAN AREA INVESTOR OWNED UTILITIES * West Virginia West Virginia APCo Monongahela Power Potomac Edison AEP Wheeling Customers 439,916 383,621 131,495 41,225 Monongahela Power Potomac Edison 95.88 95.88 Dominion Virginia 100.96 APCo AEP Wheeling $/month 86.39 86.39 Virginia Old Dominion Power APCo $/month 76.67 94.66 TYPICAL BILL COMPARISON **
$/Month 81.15
** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from the EEI Typical Bills and Average Rates Report as of January 1, 2011.
Customers 47,028
* Customer counts are as of December 31, 2009 and were sourced from table 10 at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html
MAJOR CUSTOMERS: CNX Gas Company (VA) Greif Brothers Corporation (VA) Steel of WV, Inc. (WV) WVA Manufacturing (WV) Roanoke Electric Steel Corporation (VA) Georgia-Pacific Corporation (VA) Bayer Crop Science, LP (WV) Felman Production (WV) Alcan Rolled Products (WV) The Goodyear Tire and Rubber Co. (VA) (Data for year ended December 2010)
Top 10 Customers = 42% of industrial sales Metropolitan areas account for 37% of ultimate sales 112 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
16
Total Customers at 12/31/10: Residential Commercial Industrial Other Total 667,000 78,000 3,500 500 749,000
Generating Capacity
3,738 MW
2,436 18,967
17
Capitalization Per Balance Sheet % of Capitalization Per Balance Sheet FFO Interest Coverage FFO Total Debt
Total Assets
Operating Information*** 2010 retail sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak July 23
Sources: * 2010 Form 10-K ** 3Q11 Form 10-Q (unaudited) *** 2010 FERC Form 1
18
* Customer counts are as of December 31, 2009 and were sourced from table 10 at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html
MAJOR CUSTOMERS: Ormet Aluminum Eramet Marietta, Inc. E I duPont de Nemours HQ Kraton Polymers General Mills Metal Container Corporation Glatfelter Company Anheuser-Busch, Inc. Griffin Wheel Company, Inc. Ross Products (Data for year ended December 2010)
**** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from the EEI Typical Bills and Average Rates Report as of January 1, 2011. Ohio rates represent POLR bundled residential rates.
Top 10 customers = 58% of industrial sales Metropolitan areas account for 86% of ultimate sales 254 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
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Total Customers at 12/31/10: Residential Commercial Industrial Other Total 604,000 93,000 7,000 2,000 706,000
Generating Capacity PRINCIPAL INDUSTRIES SERVED: Primary Metals Petroleum Refining Rubber & Plastic Products Chemical Manufacturing Nonmetallic Mineral Products
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8,498 MW
6,522 26,478
5.34 22.1%
5.29 24.3%
Total Assets
Operating Information 2010 retail sales in megawatt-hours 2010 firm wholesale sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak July 23
21
Sources: * 2010 Form 10-K ** 3Q11 Form 10-Q (unaudited) *** 2010 FERC Form 1
** AEP Ohio - CSPCo = 748,730 *** First Energy -Toledo Edison = 256,874 CEI = 594,286 OPCo = 710,161 Ohio Edison = 884,599
MAJOR CUSTOMERS: Ormet Primary Aluminum Corp. The Premcor Refining Group, Inc. The Timken Company Republic Engineered Products, LLC Globe Metallurgical, Inc. Linde Gase, LLC Marathon Ashland Petroleum, LLC Owens Corning Sales, LLC Sunoco Inc Texas Eastern Gas Pipeline Co. (Data for year ended December 2010)
**** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from the EEI Typical Bills and Average Rates Report as of January 1, 2011. Ohio rates represent POLR bundled residential rates.
Top 10 customers = 48% of industrial sales Metropolitan areas account for 59% of ultimate sales 139 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
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Indiana Michigan Power Company (I&M) (organized in Indiana in 1925) is engaged in the
generation, transmission and distribution of electric power to approximately 582,000 retail customers in northern and eastern Indiana and southwestern Michigan, and in supplying and marketing electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities and other market participants. At December 31, 2010, I&M had 2,705 employees. In addition to its AEP System interconnections, I&M is interconnected with the following unaffiliated utility companies: Central Illinois Public Service Company, Duke Ohio, Commonwealth Edison Company, Consumers Energy Company, Illinois Power Company, Indianapolis Power & Light Company, Louisville Gas and Electric Company, Northern Indiana Public Service Company, Duke Indiana and Richmond Power & Light Company. I&M is a member of PJM.
Total Customers at 12/31/10: Residential Commercial Industrial Other Total Generating Capacity 507,000 68,000 5,000 2,000 582,000 5,821 MW*
Generating Capacity by Fuel Mix: Coal: Nuclear: 62.1% 37.6% 0.3% 5,352 20,236
PRINCIPAL INDUSTRIES SERVED: Primary Metals Chemical Manufacturing Transportation Equipment Plastics and Rubber Products Fabricated Metals Products
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Capitalization Per Balance Sheet 2,077,906 % of Capitalization Per Balance Sheet 55.3%
5.91 28.9%
4.46 19.0%
Total Assets
Operating Information*** 2010 retail electric sales in megawatt-hours 2010 firm wholesale sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak July 23
24
Sources: * 2010 Form 10-K ** 3Q11 Form 10-Q (unaudited) *** 2010 FERC Form 1
** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from the EEI Typical Bills and Average Rates Report as of January 1, 2011.
MAJOR CUSTOMERS: Steel Dynamics Inc. (IN) Dock Foundry (MI) American Axle and Mfg. Co, Inc. (MI) IN TEK (IN) Whirlpool Corporation (MI) Saint Gobain Corporation USA (IN) White Pigeon Paper Company (MI) Air Products & Chemicals. Inc. (IN) The Minute Maid Company (MI) BOC Gases (IN) (Data for year ended December 2010)
* Customer counts are as of December 31, 2009 and were sourced from table 10 at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html
Top 10 Customers = 50% of industrial sales Metropolitan areas account for 67% of ultimate sales 205 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
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Kentucky Power
President and Chief Operating Officer: Greg Pauley
Since August 2010 Previously Director Public Policy
Generating Capacity PRINCIPAL INDUSTRIES SERVED: Petroleum Refining Coal Mining Primary Metals Chemical Manufacturing Mining Support Activities
1,078 MW
1,250 9,973
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Kentucky Power
CAPITAL STRUCTURE (in thousands)
CAPITAL STRUCTURE 2009 Equity 431,784 44.0% 2010 Equity 446,216 44.8% 9/30/2011 Equity 460,487 45.6%
Capitalization Per Balance Sheet % of Capitalization Per Balance Sheet FFO Interest Coverage FFO Total Debt
Total Assets
Operating Information*** 2010 retail electric sales in megawatt-hours 2010 firm wholesale sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak January 8
7,348,529 101,493 8.64 cents 1,543 MW Sources: * 2010 Annual Report ** 3Q11 Financial Statements (unaudited) *** 2010 FERC Form 1
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Kentucky Power
KENTUCKY INVESTOR OWNED UTILITIES * Kentucky KPCo Duke Energy Kentucky Kentucky Utilities LG & E Customers 174,994 134,819 510,875 390,825 TYPICAL BILL COMPARISON ** Kentucky Kentucky Utilities Duke Energy Kentucky LG&E KPCo $/month 80.14 82.24 85.90 99.98
* Customer counts are as of December 31, 2009 and were sourced from table 10 at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html
** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from the EEI Typical Bills and Average Rates Report as of January 1, 2011.
MAJOR CUSTOMERS: Cattletsburg Refining LLC AK Steel Holding Corporation Sidney Coal Company, Inc. KES Acquisition Company LLC Air Products & Chemicals, Inc. Perry County Coal Corporation Blue Diamond Coal Company EQT Gathering, LLC Air Liquide Czar Coal Corporation (Data for year ended December 2010)
Top 10 customers = 66% of industrial sales Metropolitan areas account for 40% of ultimate sales 67 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
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29
Public Service Company of Oklahoma (PSO) (organized in Oklahoma in 1913) is engaged in the generation,
transmission and distribution of electric power to approximately 532,000 retail customers in eastern and southwestern Oklahoma, and in supplying and marketing electric power at wholesale to other electric utility companies, municipalities, rural electric cooperatives and other market participants. At December 31, 2010, PSO had 1,150 employees. In addition to its AEP System interconnections, PSO is interconnected with Empire District Electric Co., Oklahoma Gas & Electric Co., Southwestern Public Service Co. and Westar Energy, Inc. PSO is a member of SPP. Total Customers at 12/31/10: Residential Commercial Industrial Other Total 458,000 60,000 7,000 7,000 532,000
PRINCIPAL INDUSTRIES SERVED: Paper Products Oil & Gas Extraction Transportation Equipment Plastics and Rubber Products Petroleum Refining
Generating Capacity
4,522 MW
Generating Capacity by Fuel Mix: Coal: Natural Gas: Oil: 22.8% 76.6% 0.6%
3,619 21,961
Capitalization Per Balance Sheet % of Capitalization Per Balance Sheet FFO Interest Coverage FFO Total Debt
Total Assets
Operating Information*** 2010 retail electric sales in megawatt-hours 2010 firm wholesale sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak August 12
17,916,962 7,147 7.95 cents 4,168 MW Sources: * 2010 Form 10-K ** 3Q11 Form 10-Q (unaudited) *** 2010 FERC Form 1
31
http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.ht ml
** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from the EEI Typical Bills and Average Rates Report as of January 1, 2011.
MAJOR CUSTOMERS: Weyerhaeuser Valliant Company Transok, Inc. Kimberly Clark Corp. Goodyear Tire & Rubber Company American Airlines Sinclair Sun Refining Terra Nitrogen Kelco Anchor Glass Container (Data for year ended December 2010) Top 10 customers = 46% of industrial sales Metropolitan areas account for 75% of ultimate sales 49 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
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Southwestern Electric Power Company (SWEPCO) (organized in Delaware in 1912) is engaged in the
generation, transmission and distribution of electric power to approximately 520,000 retail customers in northeastern Texas, northwestern Louisiana and western Arkansas, and in supplying and marketing electric power at wholesale to other electric utility companies, municipalities, rural electric cooperatives and other market participants. At December 31, 2010, SWEPCo had 1,382 employees. The territory served by SWEPCo also includes several military installations, colleges, and universities. SWEPCO also owns and operates a lignite coal mining operation. In addition to its AEP System interconnections, SWEPCo is also interconnected with CLECO Corp., Empire District Electric Co., Entergy Corp. and Oklahoma Gas & Electric Co. SWEPCo is a member of SPP.
Total Customers at 12/31/10: Residential Commercial Industrial Other Total 441,500 71,000 7,000 500 520,000
PRINCIPAL INDUSTRIES SERVED: Food Processing Paper Manufacturing Oil and Gas Extraction Primary Metals Chemical Manufacturing
Generating Capacity
5,319 MW
Generating Capacity by Fuel Mix: Coal: Natural Gas: Lignite: Transmission Miles Distribution Miles 34.8% 49.4% 15.8% 3,805 20,746
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Capitalization Per Balance Sheet % of Capitalization Per Balance Sheet FFO Interest Coverage FFO Total Debt
Total Assets
Operating Information 2010 retail electric sales in megawatt-hours 2010 firm wholesale sales in megawatt-hours 2010 average cost per kilowatt-hour (residential) 2010 System Peak August 11
Sources: * 2010 Form 10-K ** 3Q11 Form 10-Q (unaudited) *** 2010 FERC Form 1
34
TYPICAL BILL COMPARISON ** Arkansas OG&E SWEPCo Empire District Entergy AR $/month 66.27 72.09 88.74 89.35 Louisiana SWEPCo Entergy LA Entergy NO Entergy Gulf St. CLECO $/month 77.40 82.54 88.35 89.40 112.81 Texas SWEPCo SPSCo Entergy TX El Paso $/month 70.01 81.40 105.44 112.09
* Customer counts are as of December 31, 2009 and were sourced from table 10 at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html
Top 10 customers = 54% of industrial sales Metropolitan areas account for 75% of ultimate sales 83 persons per square mile (U.S. = 87) (Data for 12 months ended December 2010)
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MAJOR CUSTOMERS: Valero Energy Corporation Javelina Refinery Formosa Koch Refinery West TXC (Data for year ended December 2010) Top 10 customers = 53% of industrial sales* Metropolitan areas account for 78% ultimate sales 60 persons per square mile (U.S. = 87) *
Industrial % is in terms of wires revenues
PRINCIPAL INDUSTRIES SERVED: Petroleum Refining Chemical Manufacturing Oil and Gas Extraction Food Processing Pipeline Transportation
Total Customers at 12/31/10: (Based on electric meters) Residential Commercial Industrial Other Total 663,000 106,000 5,000 1,000 775,000
4,629 29,689
600,749 3,358,715 2,610,274 626,743 3,237,017 17.9% 100.0% 80.6% 19.4% 100.0%
3.52 16.7%
4.63 24.8%
Total Assets
Total Customers at 12/31/10: (Based on electric meters) Residential Commercial 146,000 30,000 5,000 5,000 186,000
MAJOR CUSTOMERS: Zoltec Corporation Sheridan Production Co. Tyson Foods, Inc. EBAA Iron TXN (Data for year ended December 2010) PRINCIPAL INDUSTRIES SERVED: Oil and Gas Extraction Food Processing Pipeline Transportation Support Activities for Mining Nonmetallic Mineral Products
377 MW
Top 10 customers = 32% industrial sales* Metropolitan areas account for 56% ultimate sales 8 persons per square mile (U.S. = 87)
(Data for 12 months ended December 2010)
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Generating Capacity by Fuel Mix: Coal: Transmission Miles Distribution Miles 100% 4,320 13,830
Capitalization Per Balance Sheet % of Capitalization Per Balance Sheet FFO Interest Coverage FFO Total Debt
Total Assets
Regulation
Rate Case Filing Requirements Recovery Mechanisms across Jurisdictions Regulatory Activity Underway Commission Overviews Approved Rate Base and ROE by Operating Company
40
Yes 60
Yes Varies
Yes 28
No n/a
Optional 45
Yes 30
Yes 45
Yes 30
Yes 30
Yes 60
Yes 30
No No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
10
--
Note 2
--
--
2 or 7
Note 1: No interim rates provided and rate cases must be filed no less than biennially; historical test year used. Note 2: If no order is received within 180 days of the filing utility can implement interim rates, however they can not be implemented before the start of the test year.
AEP East
Indiana Kentucky Michigan Ohio Tennessee Virginia West Virginia ECCR Rider Surcharge PSCR FAC FERC Tariff ERAC ENEC ECCR Rider Surcharge PSCR FAC FERC Tariff ERAC ENEC ECCR Rider Surcharge PSCR FAC FERC Tariff ERAC ENEC ECCR Rider Surcharge PSCR FAC FERC Tariff ERAC ENEC CCTR/BR Surcharge Base Rates SSO FERC Tariff ERAC/BR ENEC/BR RAC Rider RPSRAC ENEC Rider Surcharge Surcharge Rider PSCR/REP FAC FAC FAC/BR FAC PSCR FAC FERC Tariff FAC/BR ENEC
PJM Tracker
AEP West
Arkansas Louisiana Oklahoma Texas(SWP) ECR EAC Base Rates Base Rates ECR EAC Base Rates Base Rates FAC Rider Base Rates Base Rates FAC Rider Base Rates Base Rates Surch/BR Formula BR Base Rates Base Rates Rider EECRF EECR FAC FAC FAC FAC ECR/BR EAC/FRP FAC/PPC FAC/BR Base Rates Formula BR Base Rates TCRF
* - For certain jurisdictions where necessary, confirmation of the replacement of CAIR with CSAPR is occurring with applicable commissions
ECCR CCTR BR FAC PSCR REP SSO TCRR Environmental Compliance Cost Rider Clean Coal Technology Rider Base Rates Fuel Adjustment Clause Power Supply Cost Recovery Rider Renewable Energy Plan Standard Service Offer Transmission Cost Recovery Rider Purchased Power Adjustment Rider Environmental Rate Adjustment Clause
RAC RPSRAC TRAC ENEC ECR EECR FRP PPC EECRF TCRF
Rate Adjustment Clause Renewable Portfolio Standard Rate Adjustment Clause Transmission Rate Adjustment Clause Expanded Net Energy Cost Energy Cost Recovery Rider Energy Efficiency Cost Rate Formula Rate Plan Purchased Power Capacity Rider Energy Efficiency Cost Recovery Rider Transmission Cost Recovery Factor
42
PPAR ERAC
Procedural Schedule
Intervenor Testimony Due Prehearing Conference Hearing Commences October 24, 2011 November 2, 2011 November 14, 2011
43
Procedural Schedule
Intervenor Testimony Staff Testimony Rebuttal Testimony Hearing August 5, 2011 August 19, 2011 September 1, 2011 September 13, 2011
45
Projected Capital Structure Company Position (12/31/12) Required Rate Relief Company Position (12/31/12)
% of Weighted Capitalization Cost Rate Return Short-Term Debt Long-Term Debt Common Equity Other Items Other Tax Items Preferred Stock Total 0.50% 38.91% 43.08% 1.22% 16.10% 0.19% 100.00% 0.68% 6.32% 11.15% 8.79% 0.00% 4.58% 0.00% 2.46% 4.80% 0.11% 0.00% 0.01% 7.38%
Rate Base Rate of Return Operating Income Requirement Adjusted Operating Income Difference Revenue Conversion Factor Subtotal Revenue Requirement $ $ $ $ $ $ $
($ in millions)
$ 680.8 7.38% 50.2 33.0 17.2 1.6460 28.4 (3.4) (0.4) 24.5
Procedural Schedule
Intervenor Testimony Staff Testimony Rebuttal Testimony Hearing
46
November 29, 2011 November 29, 2011 December 14, 2011 January 5, 2012
Procedural Schedule
Case Filed Hearing on I&M Case in Chief Public and Intervenor filing Rebuttal Filing by I&M Hearing Proposed Order September 23, 2011 February 20 - March 2, 2012 April 27, 2012 May 25, 2012 June 18 -29, 2012 July 16, 2012
47
Commission Overview
Arkansas Public Service Commission
AEP Regulated Electric Utilities
Southwestern Electric Power Co.
Commissioners
Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 1 D: 2
Qualifications for Commissioners The Arkansas Public Service Commission (APSC) is composed of 3 members. The Governor appoints the Commissioners as well as the Chairman. Governor Beebe has appointed all of the current commissioners. Commissioners Collette Honorable, Chairperson (Dem.), since 2007; current term ends in 2011. Commissioner Honorable is a member of NARUC and serves on the Consumer Affairs and Investment Committees. She also serves on the Smart Grid Collaborative, a joint effort of NARUC and the FERC. Honorable received her Juris Doctorate from the University of Arkansas at Little Rock School of Law. Olan Reeves, Commissioner (Rep.), since 2009; current term ends in 2015. Chairman of the Workers Compensation Commission from January, 2003 until January, 2009. Prior to these appointments, Commissioner Reeves was Chief Legal Counsel to the Governor from 1998-2003 and served as the State Drug Director from 1996 to 1998. Reeves received his Juris Doctorate from the University of Arkansas School of Law in Fayetteville. Elana C. Wills, Commissioner (Dem.), since 2011; current term expires 2013. Served as an Associate Justice on the Arkansas Supreme Court by gubernatorial appointment from October 2008 December 2010. Received her Juris Doctorate from the University of Arkansas School of Law in Fayetteville.
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Commission Overview
Indiana Utility Regulatory Commission
AEP Regulated Electric Utilities
Indiana Michigan Power Co.
Commissioners
Number: 5 Appointed/Elected: Appointed Term: 4 Years Political Makeup: R: 3 D: 2
Qualifications for Commissioners Five members, appointed by the Governor from among persons nominated by a legislatively mandated utility commission nominating committee; four-year, staggered terms, full-time positions. Not more than three of the members of the IURC shall be members of the same political party. At least one of the commissioners must be an attorney qualified to practice law before the Indiana Supreme Court. The Governor appoints one of the five as chairperson. Commissioners Jim Atterholt, Chairman (Rep.), since 2009; current term ends April 2013. Prior to joining the Commission, he was the State Insurance Commissioner for more than four years where he also served as a member of the Governors Cabinet. Atterholt worked as Director of Government Affairs for AT&T--Indiana from 2003 2004. Atterholt holds a Bachelors degree from the University of Wisconsin. Kari A. E. Bennett, Commissioner (Rep.), since 2011;current term ends March 2014. Prior to joining the Commission, she was chief legal counsel of the Indiana Department of Natural Resources. From 2005 to 2007 she was Policy Director for Environments and Natural Resources for Indiana Governor Daniels. She graduated from Miami University of Ohio with a degree in environmental science and received her Juris Doctorate from the University of Minnesota. Carolene R. Mays, Commissioner (Dem.), since 2010; current term ends December 2013. Former publisher and president of the Indianapolis Recorder Newspaper and the Indiana Minority Business Magazine. From 2002 to 2008, served in the Indiana House of Representatives and sat on the committees for Small Business and Economic Development, Ways and Means and Public Health. Larry S. Landis, Commissioner (Rep.), since 2002; current term ends December 2011. Former president of a marketing and communications agency, VP Corporate Advertising, American Fletcher National Bank. Bachelors degrees in political science and economics. David E. Ziegner, Commissioner (Dem.), since 1990; current term ends April 2015. Lawyer, staff attorney for Legislative Services Agency, General Counsel for IURC. Member, NARUC Committee on Electricity and chairman of the NARUC clean coal and carbon sequestration subcommittee. Law degree from the Indiana University School of Law in Indianapolis.
49
Commission Overview
Kentucky Public Service Commission
AEP Regulated Electric Utilities
Kentucky Power Co.
Commissioners
Number: 3 Appointed/Elected: Appointed Term: 4 Years Political Makeup: R: 2 D:1
Qualifications for Commissioners Typically three members, appointed by the governor and confirmed by the state senate for four years, staggered terms, full-time positions. The governor appoints one of the three as chairman and another of the three as vice chairman to serve in the chairmans absence. Not more than two members of the KPSC shall be of the same profession or occupation. Commissioners David L. Armstrong, Chairman (Dem.), since 2008; current term expires June 2015. Former practicing attorney in private practice. Board member of NARUC and serves on its Electricity Committee and the Subcommittee on Clean Coal Technology. J.D. from University of Louisville Brandeis School of Law. Mr. Armstrong is also the former Mayor for the city of Louisville, KY (1999-2003). James W. Gardner, Vice Chairman (Rep.), since 2008; current term expires June 2012. Prior to joining the PSC Mr. Gardner was a partner at the law firm Henry Watz Gardner & Sellars PLLC where he specialized in bankruptcy law. JD degree from the University of Kentucky College of Law. Charles Borders, Commissioner (Rep.), since 2009; current term expires June 2013. Before joining the PSC, Commissioner Borders served in the Kentucky Senate, representing the 18th District in northeast Kentucky since 1991. He most recently chaired the Appropriations and Revenue Committee and served on the committees on Education and Health and Welfare. Borders received his Bachelors and Masters degrees from Morehead State University.
50
Commission Overview
Louisiana Public Service Commission
AEP Regulated Electric Utilities
Southwestern Electric Power Co.
Commissioners
Number: 5 Appointed/Elected: Elected Term: 6 Years Political Makeup: R: 3 D: 2
Qualifications for Commissioners The Louisiana Public Service Commission (LPSC) is composed of five elected members. The commissioners serve overlapping terms of six years. Commissioners James M. Field, (Chairman) (Rep.), since 1996; current term ends December 2012. Practicing attorney, member of Electrical Committee of NARUC. NFL contract advisor (1983-present), member, Sports Lawyers Association. Bachelors and Juris Doctorate from Louisiana State University. Lambert C. Bossiere, III (Dem.), since 2005; current term ends December 2016. B.S. Business Administration from Southern University. American University of Paris International Trade Law Paralegal Certificate. Former First City Court Constable for the City of New Orleans. Member of NARUC. Eric Skrmetta, (Rep.), since 2009; current term ends December 2014. Practicing Attorney since 1985. Practicing Mediator since 1989. Republican State Central Committee District 81. Juris Doctorate Southern University Law School. Foster L. Campbell, (Dem.), since 2003; current term ends December 2014. Member, Louisiana State Senate (1976-2002). Independent insurance businessman and farmer, former school teacher and agricultural products salesman. Bachelors degree from Northwestern State University. Clyde Holloway, (Rep.), since 2009; current term ends December 2016. Elected to Congress in 1987 and served in the United States House of Representatives until 1993. In October 2006 he received an appointment by President Bush as the USDA State Director of Rural Development where he served until 2009.
51
Commission Overview
Michigan Public Service Commission
AEP Regulated Electric Utilities
Indiana Michigan Power Co.
Commissioners
Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: D: 1 I: 1 R: 1
Qualifications for Commissioners The Michigan Public Service Commission (MPSC) is composed of three members appointed by the Governor with the advice and consent of the Senate. Commissioners are appointed to serve staggered six-year terms. No more than two commissioners may represent the same political party. One commissioner is designated as chairman by the Governor. Commissioners John D. Quackenbush, Chairman (Rep), since 2011; current term expires July 2017. Former managing director and senior investment analyst at UBS Global Asset Management responsible for equity research of transportation, utilities and coal industries in the US and Canada. Undergraduate degree in business economics from Calvin College and masters degree in finance from Michigan State University. Orjiakor N. Isiogu, Commissioner (Dem.), since 2007; current term expires July 2013. Former Director of the Telecommunications Division of the MPSC. Assistant Attorney General in Michigan since 1989. Undergraduate and law degree from Wayne State University. Greg R. White, Commissioner, (Ind.) , since 2009; current term expires July 2015. Former legislative liaison for the MPSC and liaison for the MPSC to the Michigan Department of Energy, Labor and Economic Growth. Holds a bachelor of science from Michigan State University and masters of public administration from Grand Valley State University.
52
Commission Overview
Ohio Public Utilities Commission
AEP Regulated Electric Utilities
Columbus Southern Power Co. Ohio Power Co.
Commissioners
Number: 5 Appointed/Elected: Appointed Term: 5 Years Political Makeup: R: 2 D: 3
Qualifications for Commissioners Five members, appointed by the governor and confirmed by the state senate; five year, staggered terms, full-time positions, commissioners shall be selected from the lists of qualified persons submitted to the governor by the PUC nominating council. Not more than three of the members of the PUCO shall be members of the same political party. The governor appoints one of the five as chairman, who serves at the pleasure of the governor until a successor has been designated. Commissioners Todd A. Snitchler, Chairman, (Rep.) , since 2011; term expires April 2014. Before joining the commission was elected to two terms in the Ohio House of Representatives. Past chairman and secretary of the Lake Township Chamber of Commerce. Received his B.S. from Grove City College in history and secondary education/social science and his law degree fro the University of Akron School of Law. Paul A. Centolella, Commissioner, (Dem.) since 2007; term expires April 2012. Juris Doctorate from the University of Michigan. From 1992-2007, worked as a senior economist in the Energy Solutions Group of Science Applications International Corporation. Former senior policy advisor and senior utility attorney for the Office of the Ohio Consumers Counsel. Steven D. Lesser, Commissioner, (Dem.) since 2010; term expires April 2015. Juris Doctorate from Capital University; previously served as PUCO chief of staff, assistant director of the legal department, deputy director of the transportation department and administrative law judge/attorney examiner in the legal department. Andre T. Porter, Commissioner, (Rep.) since 2011; term expires April 2016. Former attorney at Schottenstein Zox & Dunn. Sits on Capital University Board of Trustees and previously served on the Gahanna City Council. Received his undergraduate degree from Capital University and law degree from The Ohio State University Moritz College of Law. Cheryl Roberto, Commissioner, (Dem.) since 2008; term expires April 2013. Prior to joining the PUC, Roberto was director of the City of Columbus Public Utilities Department. Before entering the public sector, Commissioner Roberto worked as an assistant attorney general for the state of Ohio. Commissioner Roberto received her B.A. with honors from Kent State University and her Juris Doctorate from the Moritz College of Law at The Ohio State University.
Commission Overview
Oklahoma Corporation Commission
AEP Regulated Electric Utilities
Public Service Company of Oklahoma
Commissioners
Number: 3 Appointed/Elected: Elected Term: 6 Years Political Makeup: R: 3 D: 0
Qualifications for Commissioners The Oklahoma Corporation Commission (OCC) is composed of three commissioners who are elected by state-wide vote. Commissioners serve staggered sixyear terms. The election pattern was established when the Commission was created by the state constitution. Commissioners Bob Anthony, Commissioner, (Rep.), since 1989; current term expires January 2013. Member, NARUC. Served on the boards of the Oklahoma State, Oklahoma City, and South Oklahoma City chambers of commerce. Earned an M.Sc. from the London School of Economics, an M.A. from Yale University and an M.P.A. from the Kennedy School of Government at Harvard University. Patrice Douglas, Commissioner, (Rep.), since 2011; current term ends January 2015. Served as president of SpiritBank and executive vice president of First Fidelity bank. Received her undergraduate degree from Oklahoma Christian and her juris doctorate from the University of Oklahoma. Dana Murphy, Chairperson, (Rep.), since 2008; current term expires January 2015. Member, NARUC. Murphys prior experience includes working as an administrative law judge at the Commission. She has more than 20 years experience in the petroleum industry including owning and operating her own private law practice and working as a geologist in the Oklahoma petroleum industry. Juris Doctorate Oklahoma City University.
54
Commission Overview
Tennessee Regulatory Authority
AEP Regulated Electric Utilities
Kingsport Power Co.
Commissioners
Number: 4 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 1 D: 2
Qualifications for Commissioners The Tennessee Regulatory Authority (TRA) directors are appointed, one each, by the Governor, Lieutenant Governor (as Speaker of the Senate), Speaker of the House and one joint appointment by the three together, and are confirmed by the Tennessee General Assembly. The directors are appointed for six and three-year staggered terms. The chairmanship rotates every year in an agreed upon decision by the directors. Commissioners Sara Kyle, Director (Dem.), since 1996; current term expires June 2014. Former assistant public defender until she was elected to the Memphis City Court bench. The longest serving commissioner and only holdover from the previous Regulatory Authority. Law degree from Middle Tennessee State University. Mary W. Freeman, Director (Dem.), since 2008; current term expired June 2011. Prior legislative director for Governor Bredesen, executive assistant to State Representative Lois DeBerry. B.A. Tennessee State University. Kenneth C. Hill, Chairman (Rep.), since 2009; current term expires June 2015. At the time of his appointment to the TRA, Hill was Chief Executive Officer of AECC and served as General Manager of five radio stations reaching portions of East Tennessee and four surrounding states. Doctor of Religious Education, Andersonville Baptist Seminary.
55
Commission Overview
Public Utility Commission of Texas
AEP Regulated Electric Utilities
AEP Texas Central Co. AEP Texas North Co. Southwestern Electric Power Co.
Commissioners
Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 3 D: 0
Qualifications for Commissioners To be eligible for appointment, a commissioner must be: (1) a qualified voter; (2) a citizen of the United States; and (3) a representative of the general public. Chairman appointed by the Governor. Commissioners Donna L. Nelson, Chairman (Rep.), since August 2008; current term expires August 2015. Nelson served as a special assistant and advisor to Governor Perry on energy, telecommunications and cable budget and policy issues. She previously served as director of the PUC telecommunication's section and legal advisor to the PUC chairman. Nelson holds a law degree from Texas Tech University. Rolando Pablos (Rep.), since 2011; current term expires August 2013. Member of the State Bar of Texas, chair of the San Antonio Free Trade Alliance and a member and past board chair of the San Antonio Hispanic Chamber of Commerce. Received a bachelors degree from St. Marys University MBA from the University of Texas at San Antonio, a masters degree in hospitality management from the University of Houston and a law degree from St. Marys University School of Law. Kenneth W. Anderson Jr., (Rep.) since September 2008; current term expires August 2017. Past Director of Governmental Appointments under Governor Perry. Prior to that Anderson served in private practice as a corporate attorney in the area of securities law and regulatory matters. He also served as a member of the Texas Securities Board from 1999-2006. Anderson holds a law degree from Southern Methodist University.
Commission Overview
Virginia State Corporation Commission
AEP Regulated Electric Utilities
Appalachian Power Co.
Commissioners
Number: 3 Appointed/Elected: Elected Term: 6 Years Political Makeup: R: 2 D: 1
Qualifications for Commissioners The Virginia State Corporation Commission (VSCC) is composed of three members elected by the General Assembly. Commissioners are elected to serve sixyear terms, staggered in two year increments. The chair rotates annually among the three commissioners on February 1. Commissioners Mark C. Christie, (Rep.), since 2004; current term expires 2016. Prior counsel to the Speaker of the House of delegates of the Virginia General Assembly. Lawyer, private practice. Law degree from Georgetown. Judith Williams Jagdmann, Chairman, (Rep.), since 2006; current term expires 2012. Law degree from T.C. Williams School of Law at the University of Richmond. Served as Deputy Attorney General for Civil Litigation Division from 1998 to 2005. Attorney General for Commonwealth of Virginia from 2005 to 2006. James C. Dimitri, (Dem.), since 2008; current term expires 2014. Prior to being named Commissioner, Dimitri was in private practice in Richmond. From 1994 to 2000 he served as Senior Counsel, then General Counsel at the SCC. He was an assistant Attorney General from 1983 to 1987. Dimitri received his undergraduate degree in economics from the University of Virginia and his J.D. from the Boston University School of Law.
57
Commission Overview
Public Service Commission of West Virginia
AEP Regulated Electric Utilities
Appalachian Power Co. Wheeling Power Co.
Commissioners
Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 1 D: 2
Qualifications for Commissioners The West Virginia Public Service Commission (WVPSC) consists of three members, appointed by the Governor, with the advice and consent of the senate. No more than two members of the commission may belong to the same political party. The Commissioners serve six year staggered terms, with one term expiring as of July 1 of each odd numbered year. One Commissioner is designated as Chairman of the Commission by the Governor. The Chairman serves as the chief fiscal officer of the Commission. Commissioners Michael A. Albert, Chairman (Rep.), since 2007; term expires June 2013. Served as a member in the Business Law Department of Jackson Kelly. President and Chairman of the board of directors of the Kanawha County Public Library. Bachelors degree and Doctorate of Jurisprudence, West Virginia University. Ryan B. Palmer, Commissioner (Dem.), since 2010; term expired June 2015. Served as Deputy General Counsel to West Virginia Governor Joe Manchin, III; as Attorney/Advisor to Commissioner Charlotte R. Lane of the United States International Trade Commission and Law Clerk to the Honorable W. Craig Broadwater of the United States District Court, Northern District of West Virginia. Bachelors degree and Doctorate of Jurisprudence, West Virginia University. Jon W. McKinney, Commissioner (Dem.), since 2005; term expired June 2011. Currently on the board of directors of the NARUC and second VP of the MidAtlantic Conference of Regulated Utilities Commissioners. Formerly served as plant manager of Flexsys Nitro, W .V. operations, chairman of Chemical Industry Committee for W.V., board member of W.V. Chamber of Commerce, W.V. Manufacturers Association, Chemical Alliance Zone, W.V. Roundtable, Advantage Valle, St. Francis Hospital & Thomas Memorial Hospital.
58
Commission Overview
Federal Energy Regulatory Commission
Commissioners
Number: 5 Appointed/Elected: Appointed Term: 5 Years Political Makeup: R: 2 D: 3
Qualifications for Commissioners The Federal Energy Regulatory Commission (FERC) is composed of up to five commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Commissioners serve five-year terms, and have an equal vote on regulatory matters. To avoid any undue political influence or pressure, no more than three commissioners may belong to the same political party. Commissioners Jon Wellinghoff, Chairman (Dem.), since 2006; term expires June 2013. Chairman Wellinghoff is an energy law specialist with more than 30 years experience in the field. Before joining FERC, he was in private practice and focused exclusively on client matters related to renewable energy, energy efficiency and distributed generation. While in the private sector, Chairman Wellinghoff represented an array of clients from federal agencies, renewable developers, and large consumers of power to energy efficient product manufacturers and clean energy advocacy organizations. Marc Spitzer, Commissioner (Rep.) since 2006: term expired June 2011. Prior to becoming a commissioner, Spitzer served as chairman of the Arizona Corporation Commission (ACC), where he focused on policies encouraging expansion of natural gas infrastructure, specifically distribution and storage: creating a demand side management policy: enhancing the ACCs renewables standard: and advancing consumer privacy concerns in telecommunications. Sheryl A. LaFleur, Commissioner (Dem.) since 2010; term expires June 2014. Retired in 2007 as executive vice president and acting CEO of National Grid USA, responsible for the delivery of electricity to 3.4 million customers in the Northeast. Her previous positions at National Grid and its predecessor New England Electric System included COO, president of New England distribution and general counsel. She practiced law in Boston earlier in her career, and has been a community and nonprofit leader John R. Norris, Commissioner (Dem.) since 2010: term expires June 2012. Most recently served as Chief of Staff to Secretary Tom Vilsack of the U.S. Department of Agriculture. Prior to joining the USDA, he served as Chairman of the Iowa Utilities Board (IUB) from 2005 to 2009. During his tenure as IUB Chairman, Commissioner Norris served on the National Association of Regulatory Utility Commissioners (NARUC) Electricity Committee and was Co-Chair of the 2009 National Electricity Delivery Forum Phillip D. Moeller, Commissioner (Rep.), since 2006; term expires June 2015. From 1997 through 2000, Mr. Moeller served as an energy policy advisor to U.S. Senator Slade Gorton (R-Washington) where he worked on electricity policy, electric system reliability, hydropower, energy efficiency, nuclear waste, energy and water appropriations and other energy legislation. Before becoming a Commissioner, Mr. Moeller headed the Washington, D.C., office of Alliant Energy Corporation. Prior to Alliant Energy, Mr. Moeller worked in the Washington office of Calpine Corporation.
59
Approved Rate Bases & ROEs and Current Rate Base Requests
Jurisdiction Rate Base Approved ROE Approved Debt/Equity Effective Date 8/1/2010 3/30/2011 6/30/2010 3/4/2009 10/14/2010 1/5/2011 8/1/2010 11/25/2009 4/15/2010 10/17/2007 6/1/2007
APCo-Virginia APCo-West Virginia KPCo-Kentucky I&M-Indiana I&M-Michigan PSO-Oklahoma SWEPCo-Louisiana SWEPCo-Arkansas SWEPCo-Texas TCC-Texas TNC-Texas
$2,060MM $2,428MM $995MM $2,000MM $595MM $1,706MM $649MM $612MM $665MM $1,566MM $530MM
10.53% 10.00% 10.50% 10.50% 10.35% 10.15% 10.57% 10.25% 10.33% 9.96% 9.96%
**
58/42 57/43 57/43*** 44/56 50/50 54/46 50/50 54/46 49/51 60/40 60/40
* represents Generation and Distribution rate base only. ** represents the midpoint of the ROE range approved in the formula rate case settled in April 2008. ***represents a negotiated settlement
60
61
Domestic Generation
Generation Capacity*
Company AEP Generating Co Appalachian Power Co Columbus Southern Power Co Indiana Michigan Power Co Kentucky Power Co Ohio Power Co Public Service of Oklahoma Southwestern Electric Power Co Texas North Co** OVEC Capacity *** Domestic IPPs Long Term Renewable Purchase Power Agreements MW Capacity 2,496 6,286 3,738 4,511 1,078 8,498 4,522 5,319 647 980 311 1,781 40,167
* Capacity amounts represent the nominal capacity (the number of MW expected to be produced on a routine basis). ** Includes 270MW of deactivated *** Represents AEP's 43.5% interest in Ohio Valley Electric Corporation (OVEC)
62
Domestic Generation
Plant Name AEP Generating Company Rockport Lawrenceburg Appalachian Power Company Buck Byllesby Claytor Leesville London Marmet Niagara Reusens Winfield Smith Mountain Amos (1&2) Clinch River Glen Lyn Kanawha River Mountaineer Sporn Ceredo Columbus Southern Power Company Beckjord (CCD) Conesville (CCD) Picway Stuart (CCD) Stuart (CCD) Zimmer (CCD) Waterford Darby Units 1 6 State IN IN Fuel Type Steam - Coal Natural Gas Nominal Capacity (MW) 1,310 1,186 2,496 5 8 28 9 12 11 1 2 15 586 2,033 705 335 400 1,320 300 516 6,286 53 1,302 100 600 3 333 840 507 3,738 Year Plant Commissioned 1984 2004
3 4 4 2 3 3 2 5 3 5 2 3 2 2 1 2 6
VA VA VA VA WV WV VA VA WV VA WV VA VA WV WV WV WV
Hydro Hydro Hydro Hydro Hydro Hydro Hydro Hydro Hydro Pumped Storage Steam - Coal Steam - Coal Steam - Coal Steam - Coal Steam - Coal Steam - Coal Natural Gas
1912 1912 1939 1964 1935 1935 1906 1904 1938 1965 1971 1958 1918 1953 1980 1950 2001
1 4 1 4 4 1 4 6
OH OH OH OH OH OH OH OH
Steam - Coal Steam - Coal Steam - Coal Steam - Coal Oil Steam - Coal Natural Gas Natural Gas
63
Domestic Generation
Plant Name Indiana Michigan Power Company Berrien Springs Buchanan Constantine Elkhart Mottville Twin Branch Rockport Tanners Creek Cook Kentucky Power Company Big Sandy Ohio Power Company Racine Amos (3) Cardinal Gavin Kammer Mitchell Muskingum River Sporn* Units 12 10 4 3 4 6 1 4 2 State MI MI MI IN MI IN IN IN MI Fuel Type Hydro Hydro Hydro Hydro Hydro Hydro Steam - Coal Steam - Coal Steam - Nuclear Nominal Capacity (MW) 5 2 1 2 1 4 1,310 995 2,191 4,511 1,078 Year Plant Commissioned 1908 1919 1921 1913 1923 1904 1984 1951 1975
KY
Steam - Coal
1963
2 1 1 2 3 2 5 3
OH WV OH OH WV WV OH WV
Hydro Steam - Coal Steam - Coal Steam - Coal Steam - Coal Steam - Coal Steam - Coal Steam - Coal
Domestic Generation
Plant Name Public Service Company of Oklahoma Tulsa Tulsa Riverside (1&2) Riverside (3&4) Riverside Northeastern (1&2) Northeastern Southwestern (1-3) Southwestern (4&5) Southwestern Comanche Comanche Weleetka Weleetka Northeastern (3&4) Northeastern Oklaunion Southwestern Electric Power Company Arsenal Hill Lieberman Knox Lee Wilkes Lone Star Stall Mattison Welsh Flint Creek Pirkey Dolet Hills Units 3 3 2 2 1 4 1 3 2 1 3 2 3 2 2 1 1 State OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK TX Fuel Type Steam - Natural Gas Oil Steam - Natural Gas Steam - Natural Gas Oil Steam - Natural Gas Oil Steam - Natural Gas Steam - Natural Gas Oil Steam - Natural Gas Oil Steam - Natural Gas Oil Steam - Coal Oil Steam - Coal Nominal Capacity (MW) 370 8 909 170 3 922 3 467 170 2 260 4 197 4 930 1 102 4,522 107 269 486 882 50 523 312 1,584 264 580 262 5,319 Year Plant Commissioned 1923 1967 1974 2008 1976 1961 1961 1952 2008 1962 1973 1962 1975 1963 1979 1980 1986
1 4 4 3 1 1 4 3 1 1 1
LA LA TX TX TX LA AR TX AR TX LA
Steam - Natural Gas Steam - Natural Gas Steam - Natural Gas Steam - Natural Gas Steam - Natural Gas Natural Gas Natural Gas Steam - Coal Steam - Coal Steam - Lignite Steam - Lignite
1960 1947 1950 1964 1954 2010 2007 1977 1978 1985 1986
65
Domestic Generation
Plant Name Texas North Company Paint Creek (Deactivated) Abilene (Deactivated) Ft. Stockton (Deactivated) Vernon (Deactivated) Oklaunion Domestic Independent Power Projects Trent Mesa Desert Sky Units 4 1 1 4 1 State TX TX TX TX TX Fuel Type Steam - Natural Gas Steam - Natural Gas Steam - Natural Gas Oil Steam - Coal Nominal Capacity (MW) 238 18 6 8 377 647 150 161 311 75 102 147 151 95 75 100 80 100 99 100 150 99 10 100 99 99 100 1,781 Contract Initiated 1953 1949 1958 1963 1986
100 107
TX TX
Wind Wind
2001 2001
Long-Term Renewable Purchase Power Agreements Southwest Mesa South Trent Weatherford Blue Canyon II Sleeping Bear Camp Grove Fowler Ridge I Majestic Fowler Ridge III Blue Canyon V Grand Ridge II and III Fowler Ridge II Elk City Wyandot Solar Beech Ridge Minco Timber Road Wildcat * Under contract but not yet on-line, expected 2011 ** Under contract but not yet on-line, expected 2012
66
TX TX OK OK OK IL IN TX IN OK IL IN OK OH WV OK OH IN
Wind Wind Wind Wind Wind Wind Wind Wind Wind Wind Wind Wind Wind Solar Wind Wind Wind Wind
2005 2008 2005 2005 2008 2008 2009 2009 2009 2009 2009 2009 2010 2010 2009 2010 * **
Generation Statistics
Net Capacity Factors
AEP East
Coal
Super Critical* Sub-Critical*
2009 50.61% 60.49% 68.02% 37.39% 3.98% 12.44% 43.38% 38.48% 74.31% 83.01% 69.44% 17.03% 51.70% 51.70% 47.75%
2010 53.94% 60.28% 68.75% 34.40% 9.27% 9.05% 81.52% 42.11% 77.63% 73.86% 78.94% 21.79% 67.36% 67.36% 51.24%
YTD SEPT 11 56.81% 61.23% 67.93% 40.81% 19.02% 9.70% 93.11% 45.58% 82.65% 85.96% 81.58% 25.27% 69.75% 69.75% 54.19%
2009 76.18% 77.65% 79.35% 72.44% 85.38% 84.47% 43.23% 81.08% 80.50% 86.65% 76.49% 81.43% 69.47% 69.47% 77.26%
2010 74.26% 71.97% 75.84% 60.14% 80.85% 86.65% 81.40% 80.92% 84.19% 77.17% 86.56% 79.05% 81.42% 81.42% 75.95%
YTD SEPT 11 76.23% 73.51% 75.92% 66.14% 80.79% 85.21% 92.43% 85.93% 88.50% 88.79% 88.35% 84.52% 83.20% 83.20% 78.71%
2009 13.05% 8.05% 6.35% 14.90% 20.83% 52.99% 10.10% 6.92% 5.39% 7.93% 13.17% 4.96% 4.96% 12.26%
2010 10.60% 11.16% 9.08% 19.60% 9.30% 5.96% 9.05% 5.90% 8.93% 4.83% 11.75% 8.53% 8.53% 10.18%
YTD SEPT 11 11.98% 12.95% 10.77% 20.79% 24.01% 2.14% 4.66% 1.44% 1.17% 1.78% 7.26% 3.98% 3.98% 10.01%
AEP SPP
Coal***
Super Critical* Sub-Critical*
AEP SPP
Coal***
Super Critical* Sub-Critical*
AEP SPP
Coal***
Super Critical* Sub-Critical*
Gas
Gas
Gas
AEP Texas
Coal****
AEP Texas
Coal****
AEP Texas
Coal****
AEP System
AEP System
AEP System
* Super-critical includes coal units with a net maximum capacity of 450MW or greater; sub-critical includes coal units with a net maximum capacity less than 450MW. ** Includes all AEP owned Hydro and Pumped Storage generation. *** CF, EAF, and EFOR do not include Dolet Hills. **** Oklaunion reported as owned. ***** East Gas Units evaluated using Equivalent Forced Outage Factor. Since these units are run less frequently, this factor gauges their performance based on Period Hours instead of Service Hours. EFOR uses Service Hours in the denominator, and EFOF uses Period Hours in the denominator.
2009 2.55%
2010 3.53%
67
68
OSS Sharing?
Detail
Yes, above and Up to $758,600 annual margin, ratepayers receive 100%. From $758,601 to $1,167,078, below base levels ratepayers receive 85%. Above $1,167,078, ratepayers receive 50%.
Indiana*
Yes
There is $37.5 million built into Indiana's base rates. Above $37.5 million, ratepayers received 50%
Kentucky
Yes, above and Sharing occurs above and below levels included in base rates of $15,290,363, ratepayers below base levels receive 60%.
Louisiana
Yes, above base Up to $874,000 annual margin, ratepayers receive 100%. From $874,001 to $1,314,000, levels ratepayers receive 85%. Above $1,314,000, ratepayers receive 50%.
75% of profits are shared with ratepayers. n/a 75% of profits are shared with ratepayers. n/a 90% of profits are shared with ratepayers. 75% of profits are shared with ratepayers. 100% of profits passed back to ratepayers through the Expanded Net Energy Cost (ENEC) clause.
*Request on file in cause 44075 to remove amounts built into base rates and to begin sharing on a 50/50
69
Third party owners include: Arkansas Electric Cooperative Corp. (12%), East Texas Electric Cooperative (8%), and Oklahoma Municipal Power Authority (7%). Various legal challenges are on-going related to the plant (see 10-Q).
70
Total capital invested is expected to be $366 million once completed. On February 28, 2011 in West Virginia and March 1, 2011 in Virginia, APCo filed requests to enter into affiliate transactions to transfer ownership of Dresden from AEG to APCo. The WV request was approved on June 30, 2011 and VA approved the transaction on July 20, 2011. The plant was transferred to APCo in August 2011.
71
Environmental
72
CrossStateAirPollutionRule(CSAPR)
RegionalHaze
Assumed Rule Finalization Nov 2011
*HazardousAirPollutants(HAPS)
PROPOSED RULES
Assumed Rule Assumed Rule Finalization Dec 2011 Finalization Nov 2011
CoalCombustionResidual(CCR)
Assumed Rule Finalization Mid 2012
Water(316b)
Assumed Rule Finalization Mid 2012
Jan-2011
Jan-2012
Jan-2013
Jan-2014
Jan-2015
Jan-2016
Jan-2017
Jan-2018
Jan-2019
Jan-2020
*UnitsthatwillberetrofitmaybeeligibleforaoneyearcomplianceextensionfromtheEPArelatedtoHAPsandtheOklahomaunitsmayalsobeeligible foraoneyearcomplianceextensionunderRegionalHaze.
73
Coverage of states changed slightly from the proposed rule. Most notably for AEP, Texas is now included in the SO2 program while Louisiana is not.
74
On average, state budgets in the finalized Cross State Air Pollution (CSAPR) rule are significantly lower in 2012 and 2014 versus the proposed rule: 2012 SO2 13% reduction 2014 SO2 15% reduction 2012 Annual NOx 7% reduction 2012 Seasonal NOx 14% reduction
Significant reductions are required as early as January 2012 in many states. 32% and 46% reductions in SO2 are required in TX and OH, respectively, and major seasonal NOx reductions are required in OK and LA.
75
SO2 Allocation 43,870 12,948 56,818 15,325 6,182 21,507 95,713 37,494 4 133,211 47,386 47,386 258,922
Annual NOx Allocation 15,760 3,962 19,722 5,324 2,333 7,657 29,596 13,448 74 43,118 17,879 17,879 88,376 Annual NOx Allocation 9,373 N/A N/A 9,373 349 N/A 349 1,221 1,221 10,943
Seasonal NOx Allocation 6,243 1,564 7,807 2,229 970 3,199 12,722 5,699 51 18,472 7,582 7,582 37,060 Seasonal NOx Allocation 4,475 883 729 6,087 159 5,314 5,473 556 556 12,116
KPCO
AEP Ohio
I&M
Allocation 30,545 N/A N/A 30,545 685 N/A 685 2,399 2,399 33,629
PSO
TNC
76
77
Low
$ $ $ 15 810 1,425 $ $ $
High
20 1,080 1,900
42%
(1) The impact of all rules continues to be under review. Project scope and technical assessments are ongoing. Any change in scope will impact the capital cost ranges. (2) Gas plants are not included in MW. Proposed 316 (b) will impact some gas facilities.
Partially Exposed
34%
64,000 MW
20%
Rules
MW 1,385 470 3,120 1,036 2,162 377 8,550
Water Rules (2) CCR Rules Air Rules (3) (4) $ $ $
Low
55 385 2,680 $ $ $
High
85 520 3,565
(3) Air Rules include: CSAPR as finalized and HAPs and Regional Haze Federal Implementation Plans in OK & AR, as proposed. (4) Includes NSR Compliance.
Fully Exposed
24%
86,000 MW Operating
Company 27% Ohio AEP APCo I&M KPCo SWEPCO MW 2,538 1,270 495 1,078 (5) 528 5,909
Rules
Water Rules CCR Rules Air Rules
(3) (2)
Low
$ $ $ $
$
High
30 30 $ $ $ $
$
5 45 50 730
8,000
Replacement Generation
Grand Total
570
6,000
(5) Includes Big Sandy Unit 2, which remains fully exposed but, pending regulatory approval, will be scrubbed rather than replaced with new natural gas generation.
78
Retrofits/New Generation
The tables below represent our estimated $6 - $8 billion capital investment from 2012 to 2020 for environmental retrofits on 10,500 MW and new/refueled generation of 2,152 MW. The below costs include management estimates for compliance with CSAPR, HAPs MACT, CCR and 316(b) regulations as currently proposed.
Operating Company Plant AEP Ohio Conesville 5 Conesville 6 Muskingum River 5/6* Gavin 1 Gavin 2 Zimmer 1 Total MW APCO Clinch River 1*** Clinch River 2*** Dresden Total MW I&M Rockport 1 Rockport 2 Tanners Creek 4 Total MW KPCO Big Sandy 2 Total MW MW 400 400 510 1,320 1,320 330 4,280 211 211 580 1,002 1,310 1,310 500 3,120 800 800 Low Cost Estimate 2012Type of retrofit 2020 ($MM) SCR, DSI SCR, DSI Refuel/ New Natural Gas FGD upgrade FGD upgrade FGD upgrade Total Expected Cost 2,100 Refuel with Natural Gas Refuel with Natural Gas New Natural Gas Total Expected Cost FGD, SCR FGD, SCR DSI, ACI Total Expected Cost FGD Total Expected Cost High Cost Estimate 20122020 ($MM) Operating Company Plant PSO Northeastern 3 Northeastern 4 Oklaunion Total MW SWEPCO Flint Creek Welsh 1 Welsh 3 Pirkey Dolet Hills Total MW MW Type of retrofit 470 FGD, ACI, Baghouse 465 FGD, ACI, Baghouse 101 FGD upgrade, ACI 1,036 Total Expected Cost 264 528 528 580 262 2,162 FGD, ACI, Baghouse ACI, DSI, Baghouse ACI, DSI, Baghouse ACI, Baghouse ACI, Baghouse Total Expected Cost TNC Oklaunion Total MW 1,240 1,670 ***** 377 FGD upgrade, ACI 377 Total Expected Cost 900 1,200 Low Cost Estimate 20122020 ($MM) High Cost Estimate 20122020 ($MM)
700
940
2,800 **
580
765 ****
80
100
525
*Both options remain viable depending on outcome of ESP stipulation **Assumes corporate separation in Ohio is approved and the investment is able to clear the market ***Retired Plant 235MW **** Total capital invested is expected to be $366 million for the Dresden plant once completed; $343 million of which is forecasted to be spent prior to 2012. ***** Includes AEG portion of costs related to Rockport upgrade
79
Retirements
Operating Company AEP Ohio Plant Sporn 5 Conesville 3 Muskingum River 1-4 Picway 5 Sporn 2-4 Kammer 1-3 Beckjord Total MW Glen Lyn 5 Glen Lyn 6 Clinch River 3 Sporn 1 Sporn 3 Kanawha River 1 Kanawha River 2 Total MW Tanners Creek 1 Tanners Creek 2 Tanners Creek 3 Total MW Big Sandy 1 Total MW Welsh 2 Total MW Grand Total MW Expected Retirement 450 2011 165 2012 840 2014 100 2014 300 2014 630 2014 53 2014 2,538 95 240 235 150 150 200 200 1,270 145 145 205 495 278 278 528 528 5,109 2014 2014 2014 2014 2014 2014 2014
APCO
I&M
KPCo
2014
SWEPCO
2014
80
Emission Limits
In compliance with our 2007 NSR settlement, the following limits are applicable to AEPs eastern generation fleet:
Eastern System-Wide Annual Tonnage Limitations for NOx Calendar Year 2011 2012 2013 2014 2015 2016 and each year thereafter Limitation 92,500 tons 85,000 tons 85,000 tons 85,000 tons 75,000 tons 72,000 tons
Eastern System-Wide Annual Tonnage Limitations for SO2 Calendar Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 and each year thereafter
81
Limitation 450,000 tons 420,000 tons 350,000 tons 340,000 tons 275,000 tons 260,000 tons 235,000 tons 184,000 tons 174,000 tons
Emissions caps do not include any of the gas-fired units, or any new units AEP might build or purchase in the east.
Coal
Coal Procurement, Delivery & Transportation Fuel Recovery AEP River Operations Coal Market Information
82
AEP West
Lignite 23% Powder River Basin 77%
Coal Stats: 92% contracted for 2012 and 78% contracted for 2013* Avg. system delivered price ~ $47/ton in 2011** East ~ $55/ton, West ~ $30/ton System price increase of approximate 4% in 2012 ~ $49/ton* East ~ $56/ton, West ~ $31/ton
83 (*based on committed position information available as of 10/19/11 **based on coal receipts as of 9/30/2011)
Coal Delivery
Total AEP System
2010 Actual
Belt 12% Railcar Direct 33% Rail/ Barge* 19% Truck Combo Truck 3% 6%
AEP East
Truck Combo Railcar Direct Belt 4% 4% 16% Truck 9% Belt 29%
AEP West
84
* Reflects coal delivered to AEP plants transported through a combination of rail and barge
17%
83%
AEP-operated Asset
External Carrier
86
Arkansas Indiana Kentucky Louisiana Michigan Ohio Oklahoma Tennessee Texas (SPP) Virginia West Virginia
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Annually Semi-Annually Monthly Monthly Annually Quarterly Annually Monthly Tri-Annually Annually Annually
87
Northern Appalachia
88
Transmission Initiatives
89
$260 M invested in three states by the end of 2011 (OH, MI & OK) Baseline capital spending target for OH, MI & OK of $350M for 2012 Pursuing regulatory approvals for other states (AR, LA, WV, VA, IN & KY)
Settlement filed in IN with approval expected in 2011 Outcomes expected in WV & KY in 2011 Proceedings in AR, LA and VA likely to extend into 2012 Additional capital spending opportunity in these states for 2012 and beyond
765-kV Tower
90
Debt to equity ratio of 60/40 Authorized ROE of 9.96% Plant In Service: $513M CWIP: $307M
The ROW routes shown on this diagram are for illustrative purposes only and may not depict the actual route that could eventually be selected. The substation locations may also be modified.
Next Steps:
91
Project Overview:
50/50 joint venture between AEP and Duke. LLC Agreement was executed in August 2008. Estimated project cost is $950 million. FERC 205 order issued March 2009. ROE of 12.54% 100% CWIP in rate base during development Abandonment for prudently incurred costs 50/50 hypothetical capital structure during construction Establishment of deferred regulatory asset to recover preconstruction costs during the construction period In-service in phases between 2015-2018.
SULLIVAN EDWARDSPORT
ROCKPORT
Project Status:
It is anticipated that the Greentown to New Reynolds segment will be included in MISOs MVP portfolio that will be approved for construction by the MISO Board in December 2011. Pioneer is planning to file for Indiana utility status in 4Q 2011.
The ROW routes shown on this diagram are for illustrative purposes only and may not depict the actual route that could eventually be selected. The substation locations may also be modified.
92
Project Overview:
AEP and ETA executed LLC agreements with Exelon to form project companies in Illinois and Indiana in June 2011. Estimated project cost is $1.6 billion. The investment is shared 67% by Exelon, 22% by ETA* and 11% by AEP. FERC 205 order issued October 2011. ROE of 11.43% 100% CWIP in rate base during development Abandonment for prudently incurred costs 55/45 hypothetical equity to debt capital structure Establishment of deferred regulatory asset to recover pre-construction costs during the construction period In-service in phases between 2015-2018.
NELSON
KEWANEE
BLUECREEK
The ROW routes shown on this diagram are for illustrative purposes only and may not depict the actual route that could eventually be selected. The substation locations may also be modified.
Project Status:
Continue advocacy with PJM to ensure inclusion in the 2012 2013 RTEP planning process
*ETA is a 50/50 Joint venture between subsidiaries of MidAmerican Energy Holding Company and AEP
93
Project Overview:
50/50 joint venture between ETA and Westar Energy LLC agreement was executed in May 2008. FERC 205 order issued December 2008: 12.8% incentive ROE 100% CWIP in rate base during development Abandonment for prudently incurred costs 50/50 hypothetical capital structure during construction Establishment of deferred regulatory asset to recover pre-construction costs during the construction period Estimated project cost is $225 million. In-service date is December 2014.
HITCHLAND WOODWARD WICHITA MEDICINE LODGE
Project Status:
Approved as SPP Priority Project in April 2010. Notice to Construct at double circuit 345 kV received July 2010 Siting application approved in June 2011. Compliance filing to recover costs made in May 2011. Right-of-way acquisition underway.
94
The ROW routes shown on this diagram are for illustrative purposes only and may not depict the actual route that could eventually be selected. The substation locations may also be modified.
Project Overview:
50/50 joint venture between ETA and MidAmerican Energy Company. LLC Agreement was executed in August 2011. MPT line will strengthen the high voltage transmission system connecting Illinois and Iowa. Estimated project cost of the initial route is $865 million. The estimated project cost of the alternative route is $650 million. In-service date is estimated to be 2019. FERC 205 Filing is expected in 4Q 2011.
MPT Route MPT Route Initial Route Initial Route Alternative Route Alternative Route
BLACKHAWK
ADAIR
KEWANEE
LOUISA
Project Status:
Economic and reliability transmission studies to support the FERC 205 filing are expected to be completed by 4Q 2011.
The ROW routes shown on this diagram are for illustrative purposes only and may not depict the actual route that could eventually be selected. The substation locations may also be modified.
95
Financial Update
Capitalization and Liquidity Position Banking Group Credit Ratings Long-Term Debt Maturity Profile Debt Schedules
96
Total Debt/Capitalization
70%
65% 62.5% 60.7% 60% 59.1% 57.2% 57.0% 55% 57.2% 56.6% 54.6%
Plus Cash & Cash Equivalents Less Commercial Paper Outstanding Letters of credit issued Net available Liquidity $
546
50%
45%
40%
A A A A A 06 07 08 09 10 20 11 20 2Q 3Q 20 11 11 1Q
20
20
Note: Total Debt is calculated according to GAAP and includes securitized debt
97
20
20
20
43.7%
Aa3 / A+ / AAA 3 / A / A+ A3 / BBB+ / A A1 / AA- / AAAa3 / A+ / AABaa1 / BBB+ / AAa2 / AA- / AAA 1 / A / A+ A2 / A / A A 3 / A / A+ Baa1 / BBB / ABaa2 / BB B / BBB+ A1 / AA- / AA-
European
Credit A gricole Royal Bank of Scotland Barclays Credit S uisse BNP Paribas UB S Deutsche Bank BBVA WestLB
27.8%
Aa2 / A+ / AAA1 / A / AAA1 / A+ / AAAa2 / A+ / AAAa2 / AA / AAAa3 / A + / A+ Aa3 / A+ / AAAa2 / AA / AAA3 / BBB+ / A -
Asian
Bank of Tokyo-Mitsubishi Mizuho Sumitomo
17.4%
Aa3 / A / A A1 / A / A Aa3 / A / AA-
Canadian
Scotia Royal Bank of Canada
11.1%
Aa1 / AA- / AAAa1 / AA- / AA
Total
Percentages based on par ticipation in the two core credi t facitilites, AEP Credit, stand-al one letters of cr edit and AEP's share of OVEC and ETT.
98
99
(1) Includes $756 million of amortizing Texas Securitization Bonds based upon scheduled final payment date Includes mandatory tenders (put bonds) Data as of September 30, 2011
100
Debt Schedules
American Electric Power, Inc
Junior Subordinated Debentures Senior Notes Weighted Average or Total
Interest
8.750% 5.250% 7.23%
Maturity
03/01/2063 06/01/2015
Amount
$315,000,000 $242,775,000 $557,775,000
AEP Generating
Pollution Control Bond Pollution Control Bond Senior Notes Weighted Average or Total
1
Interest
Floating Floating 6.330% 6.330%
Maturity
07/01/20251 07/01/2025
1
Amount
$22,500,000 $22,500,000 $189,090,980 $234,090,980
09/30/2037
Interest
4.450%
Maturity
06/01/2020
Amount
$44,310,000
$369,310,000
101
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.
Debt Schedules
AEP Texas Central
Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Senior Notes Weighted Average or Total Securitization Bond Securitization Bond
Interest
5.625% 4.450% 6.300% 5.200% 4.400% 4.550% 1.125% 6.650% 5.421%
Maturity
10/01/2017 06/01/2020 11/01/2029 05/01/2030 05/01/2030 05/01/2030 06/01/20302 02/15/2033
Amount
$40,890,000 $6,330,000 $100,635,000 $60,000,000 $111,700,000 $50,000,000 $60,000,000 $275,000,000 $704,555,000
07/15/2013 01/15/2016
$130,670,070 $191,856,858
$322,526,928
5.179%
$1,365,218,567
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.
102
Debt Schedules
Appalachian Power Company
Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond
Interest
4.850% 4.850% 5.000% 4.625% 2.000% 6.050% Floating Floating 5.375% 2.000% Floating Floating
Maturity
05/01/20193 05/01/2019
3
Amount
$30,000,000 $40,000,000 $19,500,000 $17,500,000 $100,000,000 $30,000,000 $50,275,000 $75,000,000 $50,000,000 $65,350,000 $54,375,000 $50,000,000
11/01/2021 11/01/2021 10/1/20224 12/01/2024 02/1/20365 02/1/20365 12/01/2038 01/1/20416 12/1/20427 12/1/20427
Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Weighted Average or Total
3 4 5 6 7
5.650% 4.950% 3.400% 5.000% 7.950% 4.600% 5.950% 5.800% 6.375% 6.700% 7.000% 5.65%
08/15/2012 02/01/2015 05/24/2015 06/01/2017 01/15/2020 03/30/2021 05/15/2033 10/01/2035 04/01/2036 08/15/2037 04/01/2038
$250,000,000 $200,000,000 $300,000,000 $250,000,000 $350,000,000 $350,000,000 $200,000,000 $250,000,000 $250,000,000 $250,000,000 $500,000,000 $3,732,000,000
Put date 09/04/2013 Put date 10/01/2014 Put date 03/17/2013 Put date 08/01/2012 Put date 03/24/2014
103
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.
Debt Schedules
Columbus Southern Power
Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond
Interest
3.875% 5.800% 4.850% 5.100%
Maturity
12/01/20388 12/01/2038 08/01/20409 11/01/2042
10
Amount
$60,000,000 $32,245,000 $44,500,000 $56,000,000
Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
$1,442,745,000
10
104
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.
Debt Schedules
Indiana Michigan Power Company
Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond Pollution Control Bond
Interest
Floating Floating 5.250% 4.625% 6.250% 6.250%
Maturity
10/01/201911 11/01/202112 04/01/2025 06/01/2025 06/01/202513 06/01/202513
Amount
$25,000,000 $52,000,000 $40,000,000 $50,000,000 $50,000,000 $50,000,000
Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
$1,699,631,464
105
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.
Debt Schedules
Kentucky Power
Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
Interest
6.000% 7.250% 8.030% 5.625% 8.130% 6.397%
Maturity
09/15/2017 06/18/2021 06/18/2029 12/01/2032 06/18/2039
Amount
$325,000,000 $40,000,000 $30,000,000 $75,000,000 $60,000,000
$530,000,000
Interest
Floating 5.150% 2.875% 4.900% 3.250% 3.125% 5.500% 5.750% 4.850% 6.000% 5.375% 6.600% 6.375% 5.482%
Maturity
07/1/201414 05/01/2026 12/01/202715 06/01/2037 06/01/204116 06/01/204317 02/15/2013 09/01/2013 01/15/2014 06/01/2016 10/01/2021 02/15/2033 07/15/2033
Amount
$50,000,000 $50,000,000 $39,130,000 $65,000,000 $79,450,000 $86,000,000 $250,000,000 $250,000,000 $225,000,000 $350,000,000 $500,000,000 $250,000,000 $225,000,000 $2,419,580,000
Put date 03/10/2013 Put date 08/01/2014 Put date 06/02/2014 Put date 04/01/2015
106
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.
Debt Schedules
Public Service Company of Oklahoma
Pollution Control Bond Pollution Control Bond Senior Notes Senior Notes Senior Notes Senior Notes Weighted Average or Total
Interest
5.250% 4.450% 6.150% 5.150% 4.400% 6.625% 5.494%
Maturity
06/01/2014 06/01/2020 08/01/2016 12/01/2019 02/01/2021 11/15/2037
Amount
$33,700,000 $12,660,000 $150,000,000 $250,000,000 $250,000,000 $250,000,000 $946,360,000
Interest
7.030% 6.370% 4.950% 3.250% 5.375% 4.900% 5.550% 5.875% 6.450% 6.200%
Maturity
02/22/2012 10/31/2024 03/01/2018 01/01/201918 04/15/2015 07/01/2015 01/15/2017 03/01/2018 01/15/2019 03/15/2040
Amount
$20,000,000 $25,000,000 $81,700,000 $53,500,000 $100,000,000 $150,000,000 $250,000,000 $300,000,000 $400,000,000 $350,000,000
5.809%
$1,730,200,000
107
Note: Debt schedules current as of 9/30/11. The weighted average coupon excludes all floating rate debt.