Commission
|
Registrants; States of Incorporation;
|
I.R.S. Employer
|
||
File Number
|
Address and Telephone Number
|
Identification Nos.
|
||
1-3525
|
AMERICAN ELECTRIC POWER COMPANY, INC. (A New York Corporation)
|
13-4922640
|
||
1-3457
|
APPALACHIAN POWER COMPANY (A Virginia Corporation)
|
54-0124790
|
||
1-2680
|
COLUMBUS SOUTHERN POWER COMPANY (An Ohio Corporation)
|
31-4154203
|
||
1-3570
|
INDIANA MICHIGAN POWER COMPANY (An Indiana Corporation)
|
35-0410455
|
||
1-6543
|
OHIO POWER COMPANY (An Ohio Corporation)
|
31-4271000
|
||
0-343
|
PUBLIC SERVICE COMPANY OF OKLAHOMA (An Oklahoma Corporation)
|
73-0410895
|
||
1-3146
|
SOUTHWESTERN ELECTRIC POWER COMPANY (A Delaware Corporation)
|
72-0323455
|
||
1 Riverside Plaza, Columbus, Ohio 43215-2373
|
||||
Telephone (614) 716-1000
|
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
|
|||||
Yes
|
X
|
No
|
Indicate by check mark whether American Electric Power Company, Inc. has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
|||||
Yes
|
X
|
No
|
Indicate by check mark whether Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company have submitted electronically and posted on the AEP corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
|||||
Yes
|
No
|
Indicate by check mark whether American Electric Power Company, Inc. is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of ‘large accelerated filer,’ ‘accelerated filer’ and ‘smaller reporting company’ in Rule 12b-2 of the Exchange Act.
|
|||||
Large accelerated filer
|
X
|
Accelerated filer
|
|||
Non-accelerated filer
|
Smaller reporting company
|
Indicate by check mark whether Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company are large accelerated filers, accelerated filers, non-accelerated filers or smaller reporting companies. See the definitions of ‘large accelerated filer,’ ‘accelerated filer’ and ‘smaller reporting company’ in Rule 12b-2 of the Exchange Act.
|
|||||
Large accelerated filer
|
Accelerated filer
|
||||
Non-accelerated filer
|
X
|
Smaller reporting company
|
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).
|
|||||
Yes
|
No
|
X
|
Columbus Southern Power Company and Indiana Michigan Power Company meet the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to Form 10-Q.
|
Number of shares of common stock outstanding of the registrants at
April 29, 2011
|
|||
American Electric Power Company, Inc.
|
481,790,955
|
||
($6.50 par value)
|
|||
Appalachian Power Company
|
13,499,500
|
||
(no par value)
|
|||
Columbus Southern Power Company
|
16,410,426
|
||
(no par value)
|
|||
Indiana Michigan Power Company
|
1,400,000
|
||
(no par value)
|
|||
Ohio Power Company
|
27,952,473
|
||
(no par value)
|
|||
Public Service Company of Oklahoma
|
9,013,000
|
||
($15 par value)
|
|||
Southwestern Electric Power Company
|
7,536,640
|
||
($18 par value)
|
Page
|
||||||||||
Glossary of Terms
|
i
|
|||||||||
Forward-Looking Information
|
iv
|
|||||||||
Part I. FINANCIAL INFORMATION
|
||||||||||
Items 1, 2 and 3 - Financial Statements, Management’s Discussion and Analysis and Quantitative and Qualitative Disclosures About Market Risk:
|
||||||||||
American Electric Power Company, Inc. and Subsidiary Companies:
|
||||||||||
Management’s Discussion and Analysis
|
1
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
17
|
|||||||||
Condensed Consolidated Financial Statements
|
21
|
|||||||||
Index of Condensed Notes to Condensed Consolidated Financial Statements
|
26
|
|||||||||
Appalachian Power Company and Subsidiaries:
|
||||||||||
Management’s Discussion and Analysis
|
73
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
79
|
|||||||||
Condensed Consolidated Financial Statements
|
80
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
85
|
|||||||||
Columbus Southern Power Company and Subsidiaries:
|
||||||||||
Management’s Narrative Discussion and Analysis
|
87
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
90
|
|||||||||
Condensed Consolidated Financial Statements
|
91
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
96
|
|||||||||
Indiana Michigan Power Company and Subsidiaries:
|
||||||||||
Management’s Narrative Discussion and Analysis
|
98
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
100
|
|||||||||
Condensed Consolidated Financial Statements
|
101
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
106
|
|||||||||
Ohio Power Company Consolidated:
|
||||||||||
Management’s Discussion and Analysis
|
108
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
113
|
|||||||||
Condensed Consolidated Financial Statements
|
114
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
119
|
|||||||||
Public Service Company of Oklahoma:
|
||||||||||
Management’s Discussion and Analysis
|
121
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
124
|
|||||||||
Condensed Financial Statements
|
125
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
130
|
|||||||||
Southwestern Electric Power Company Consolidated:
|
||||||||||
Management’s Discussion and Analysis
|
132
|
|||||||||
Quantitative and Qualitative Disclosures About Market Risk
|
136
|
|||||||||
Condensed Consolidated Financial Statements
|
137
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
142
|
Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
143
|
|||||||||
Combined Management’s Discussion and Analysis of Registrant Subsidiaries
|
201
|
|||||||||
Controls and Procedures
|
211
|
|||||||||
Part II. OTHER INFORMATION
|
||||||||||
Item 1.
|
Legal Proceedings
|
212
|
||||||||
Item 1A.
|
Risk Factors
|
212
|
||||||||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
214
|
||||||||
Item 5.
|
Other Information
|
214
|
||||||||
Item 6.
|
Exhibits:
|
214
|
||||||||
Exhibit 12
|
||||||||||
Exhibit 31(a)
|
||||||||||
Exhibit 31(b)
|
||||||||||
Exhibit 32(a)
|
||||||||||
Exhibit 32(b)
|
||||||||||
SIGNATURE
|
215
|
This combined Form 10-Q is separately filed by American Electric Power Company, Inc., Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants.
|
Term
|
Meaning
|
AEGCo
|
AEP Generating Company, an AEP electric utility subsidiary.
|
|
AEP or Parent
|
American Electric Power Company, Inc.
|
|
AEP Consolidated
|
AEP and its majority owned consolidated subsidiaries and consolidated affiliates.
|
|
AEP Credit
|
AEP Credit, Inc., a subsidiary of AEP which factors accounts receivable and accrued utility revenues for affiliated electric utility companies.
|
|
AEP East companies
|
APCo, CSPCo, I&M, KPCo and OPCo.
|
|
AEP Power Pool
|
Members are APCo, CSPCo, I&M, KPCo and OPCo. The Pool shares the generation, cost of generation and resultant wholesale off-system sales of the member companies.
|
|
AEP System or the System
|
American Electric Power System, an integrated electric utility system, owned and operated by AEP’s electric utility subsidiaries.
|
|
AEPEP
|
AEP Energy Partners, Inc., a subsidiary of AEP dedicated to wholesale marketing and trading, asset management and commercial and industrial sales in the deregulated Texas market.
|
|
AEPSC
|
American Electric Power Service Corporation, a service subsidiary providing management and professional services to AEP and its subsidiaries.
|
|
AFUDC
|
Allowance for Funds Used During Construction.
|
|
AOCI
|
Accumulated Other Comprehensive Income.
|
|
APCo
|
Appalachian Power Company, an AEP electric utility subsidiary.
|
|
APSC
|
Arkansas Public Service Commission.
|
|
BOA
|
Bank of America Corporation.
|
|
CAA
|
Clean Air Act.
|
|
CLECO
|
Central Louisiana Electric Company, a nonaffiliated utility company.
|
|
CO2
|
Carbon Dioxide and other greenhouse gases.
|
|
Cook Plant
|
Donald C. Cook Nuclear Plant, a two-unit, 2,191 MW nuclear plant owned by I&M.
|
|
CSPCo
|
Columbus Southern Power Company, an AEP electric utility subsidiary.
|
|
CTC
|
Competition Transition Charge.
|
|
DCC Fuel
|
DCC Fuel LLC, DCC Fuel II LLC and DCC Fuel III LLC, variable interest entities formed for the purpose of acquiring, owning and leasing nuclear fuel to I&M.
|
|
DHLC
|
Dolet Hills Lignite Company, LLC, a wholly-owned lignite mining subsidiary of SWEPCo.
|
|
E&R
|
Environmental compliance and transmission and distribution system reliability.
|
|
EIS
|
Energy Insurance Services, Inc., a nonaffiliated captive insurance company.
|
|
ERCOT
|
Electric Reliability Council of Texas.
|
|
ESP
|
Electric Security Plans, filed with the PUCO, pursuant to the Ohio Amendments.
|
|
ETT
|
Electric Transmission Texas, LLC, an equity interest joint venture between AEP Utilities, Inc. and MidAmerican Energy Holdings Company Texas Transco, LLC formed to own and operate electric transmission facilities in ERCOT.
|
|
FAC
|
Fuel Adjustment Clause.
|
|
FASB
|
Financial Accounting Standards Board.
|
|
Federal EPA
|
United States Environmental Protection Agency.
|
|
FERC
|
Federal Energy Regulatory Commission.
|
|
FGD
|
Flue Gas Desulfurization or Scrubbers.
|
|
FTR
|
Financial Transmission Right, a financial instrument that entitles the holder to receive compensation for certain congestion-related transmission charges that arise when the power grid is congested resulting in differences in locational prices.
|
|
GAAP
|
Accounting Principles Generally Accepted in the United States of America.
|
|
I&M
|
Indiana Michigan Power Company, an AEP electric utility subsidiary.
|
Term
|
Meaning
|
|
IGCC
|
Integrated Gasification Combined Cycle, technology that turns coal into a cleaner-burning gas.
|
|
Interconnection Agreement
|
Agreement, dated July 6, 1951, as amended, by and among APCo, CSPCo, I&M, KPCo and OPCo, defining the sharing of costs and benefits associated with their respective generating plants.
|
|
IRS
|
Internal Revenue Service.
|
|
IURC
|
Indiana Utility Regulatory Commission.
|
|
KGPCo
|
Kingsport Power Company, an AEP electric utility subsidiary.
|
|
KPCo
|
Kentucky Power Company, an AEP electric utility subsidiary.
|
|
KWH
|
Kilowatthour.
|
|
LPSC
|
Louisiana Public Service Commission.
|
|
MISO
|
Midwest Independent Transmission System Operator.
|
|
MMBtu
|
Million British Thermal Units.
|
|
MPSC
|
Michigan Public Service Commission.
|
|
MTM
|
Mark-to-Market.
|
|
MW
|
Megawatt.
|
|
NEIL
|
Nuclear Electric Insurance Limited.
|
|
NOx
|
Nitrogen oxide.
|
|
Nonutility Money Pool
|
AEP’s Nonutility Money Pool.
|
|
NSR
|
New Source Review.
|
|
OCC
|
Corporation Commission of the State of Oklahoma.
|
|
OPCo
|
Ohio Power Company, an AEP electric utility subsidiary.
|
|
OPEB
|
Other Postretirement Benefit Plans.
|
|
OTC
|
Over the counter.
|
|
OVEC
|
Ohio Valley Electric Corporation, which is 43.47% owned by AEP.
|
|
PJM
|
Pennsylvania – New Jersey – Maryland regional transmission organization.
|
|
PM
|
Particulate Matter.
|
|
PSO
|
Public Service Company of Oklahoma, an AEP electric utility subsidiary.
|
|
PUCO
|
Public Utilities Commission of Ohio.
|
|
PUCT
|
Public Utility Commission of Texas.
|
|
Registrant Subsidiaries
|
AEP subsidiaries which are SEC registrants; APCo, CSPCo, I&M, OPCo, PSO and SWEPCo.
|
|
Risk Management Contracts
|
Trading and nontrading derivatives, including those derivatives designated as cash flow and fair value hedges.
|
|
Rockport Plant
|
A generating plant, consisting of two 1,300 MW coal-fired generating units near Rockport, Indiana, owned by AEGCo and I&M.
|
|
RTO
|
Regional Transmission Organization.
|
|
Sabine
|
Sabine Mining Company, a lignite mining company that is a consolidated variable interest entity.
|
|
SIA
|
System Integration Agreement.
|
|
SNF
|
Spent Nuclear Fuel.
|
|
SO2
|
Sulfur Dioxide.
|
|
SPP
|
Southwest Power Pool.
|
|
Stall Unit
|
J. Lamar Stall Unit at Arsenal Hill Plant.
|
|
SWEPCo
|
Southwestern Electric Power Company, an AEP electric utility subsidiary.
|
|
TCC
|
AEP Texas Central Company, an AEP electric utility subsidiary.
|
|
Texas Restructuring Legislation
|
Legislation enacted in 1999 to restructure the electric utility industry in Texas.
|
|
TNC
|
AEP Texas North Company, an AEP electric utility subsidiary.
|
Term
|
Meaning
|
|
Transition Funding
|
AEP Texas Central Transition Funding I LLC and AEP Texas Central Transition Funding II LLC, wholly-owned subsidiaries of TCC and consolidated variable interest entities formed for the purpose of issuing and servicing securitization bonds related to Texas restructuring law.
|
|
True-up Proceeding
|
A filing made under the Texas Restructuring Legislation to finalize the amount of stranded costs and other true-up items and the recovery of such amounts.
|
|
Turk Plant
|
John W. Turk, Jr. Plant.
|
|
Utility Money Pool
|
AEP System’s Utility Money Pool.
|
|
VIE
|
Variable Interest Entity.
|
|
Virginia SCC
|
Virginia State Corporation Commission.
|
|
WPCo
|
Wheeling Power Company, an AEP electric utility subsidiary.
|
|
WVPSC
|
Public Service Commission of West Virginia.
|
|
·
|
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&M’s 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 related regulation 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.
|
·
|
Other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, cyber security threats and other catastrophic events.
|
·
|
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.
|
AEP and its Registrant Subsidiaries expressly disclaim any obligation to update any forward-looking information.
|
·
|
Generation of electricity for sale to U.S. retail and wholesale customers.
|
·
|
Electricity transmission and distribution in the U.S.
|
·
|
Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.
|
·
|
Wind farms and marketing and risk management activities primarily in ERCOT and to a lesser extent Ohio in PJM and MISO.
|
|
|
Three Months Ended March 31,
|
||||
|
|
2011
|
|
2010
|
||
|
|
(in millions)
|
||||
Utility Operations
|
$
|
378
|
|
$
|
344
|
|
AEP River Operations
|
|
7
|
|
|
3
|
|
Generation and Marketing
|
|
1
|
|
|
10
|
|
All Other (a)
|
|
(31)
|
|
|
(11)
|
|
Net Income
|
$
|
355
|
|
$
|
346
|
(a)
|
While not considered a business segment, All Other includes:
|
|
·
|
Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense, and other nonallocated costs.
|
|
·
|
Forward natural gas contracts that were not sold with our natural gas pipeline and storage operations in 2004 and 2005. These contracts are financial derivatives which settle and expire in the fourth quarter of 2011.
|
|
·
|
Revenue sharing related to the Plaquemine Cogeneration Facility which ends in the fourth quarter of 2011.
|
Ÿ
|
Successful rate proceedings in our various jurisdictions.
|
Ÿ
|
The first quarter 2011 deferral of 2010 costs related to storms and cost reduction initiatives as approved in our March 2011 West Virginia base rate settlement.
|
Ÿ
|
The unfavorable 2010 tax treatment associated with future reimbursement of Medicare Part D prescription drug benefits.
|
These increases were partially offset by:
|
|
Ÿ
|
A net loss incurred as a result of the February 2011 settlement of litigation with BOA and Enron.
|
Ÿ
|
The write-off of a portion of the Mountaineer Carbon Capture and Storage Product Validation Facility as denied by the WVPSC in March 2011.
|
Ÿ
|
The less favorable weather impact across our service territory in comparison to the first quarter of 2010.
|
|
|
Three Months Ended
|
||||
|
|
March 31,
|
||||
|
|
2011
|
|
2010
|
||
|
|
(in millions)
|
||||
Total Revenues
|
$
|
3,524
|
|
$
|
3,426
|
|
Fuel and Purchased Power
|
|
1,297
|
|
|
1,247
|
|
Gross Margin
|
|
2,227
|
|
|
2,179
|
|
Depreciation and Amortization
|
|
393
|
|
|
398
|
|
Other Operating Expenses
|
|
1,060
|
|
|
1,040
|
|
Operating Income
|
|
774
|
|
|
741
|
|
Other Income, Net
|
|
43
|
|
|
43
|
|
Interest Expense
|
|
232
|
|
|
235
|
|
Income Tax Expense
|
|
207
|
|
|
205
|
|
Net Income
|
$
|
378
|
|
$
|
344
|
Summary of KWH Energy Sales for Utility Operations
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
16,949
|
|
|
17,774
|
|
Commercial
|
|
11,646
|
|
|
11,475
|
|
Industrial
|
|
14,329
|
|
|
13,381
|
|
Miscellaneous
|
|
723
|
|
|
713
|
Total Retail (a)
|
|
43,647
|
|
|
43,343
|
|
|
|
|
|
|
|
|
Wholesale
|
|
9,151
|
|
|
8,137
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
52,798
|
|
|
51,480
|
|
|
|
|
|
|
|
|
(a) Includes energy delivered to customers served by AEP's Texas Wires Companies.
|
Summary of Heating and Cooling Degree Days for Utility Operations
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
|
2011
|
|
2010
|
||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Eastern Region
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,854
|
|
|
1,900
|
|
Normal - Heating (b)
|
|
1,739
|
|
|
1,741
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
3
|
|
|
-
|
|
Normal - Cooling (b)
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
|
Western Region
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
692
|
|
|
759
|
|
Normal - Heating (b)
|
|
579
|
|
|
574
|
|
|
|
|
|
|
|
|
Actual - Cooling (d)
|
|
109
|
|
|
20
|
|
Normal - Cooling (b)
|
|
58
|
|
|
58
|
|
|
|
|
|
|
|
|
(a)
|
Eastern Region and Western Region heating degree days are calculated on a 55 degree
|
|||||
|
temperature base.
|
|
|
|
|
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
|||||
(d)
|
Western Region cooling degree days are calculated on a 65 degree temperature base for
|
|||||
|
PSO/SWEPCO and a 70 degree temperature base for TCC/TNC.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income from Utility Operations
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 344 | ||
|
||||
Changes in Gross Margin:
|
||||
Retail Margins
|
26 | |||
Off-system Sales
|
12 | |||
Transmission Revenues
|
8 | |||
Other Revenues
|
2 | |||
Total Change in Gross Margin
|
48 | |||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
(14 | ) | ||
Depreciation and Amortization
|
5 | |||
Taxes Other Than Income Taxes
|
(6 | ) | ||
Carrying Costs Income
|
1 | |||
Allowance for Equity Funds Used During Construction
|
(4 | ) | ||
Interest Expense
|
3 | |||
Equity Earnings of Unconsolidated Subsidiaries
|
3 | |||
Total Expenses and Other
|
(12 | ) | ||
|
||||
Income Tax Expense
|
(2 | ) | ||
|
||||
First Quarter of 2011
|
$ | 378 |
·
|
Retail Margins increased $26 million primarily due to the following:
|
||
·
|
Successful rate proceedings in our service territories which include:
|
||
·
|
A $35 million rate increase in Ohio.
|
||
·
|
An $18 million rate increase in Kentucky.
|
||
·
|
A $13 million net rate increase for SWEPCo.
|
||
·
|
A $10 million net rate increase for I&M.
|
||
· | A $5 million increase in margins from industrial sales partially due to an increase in production at Ormet, a major industrial customer in Ohio. | ||
These increases were partially offset by:
|
|||
·
|
A $23 million decrease in rate related margins for APCo primarily due to the expiration of E&R cost recovery in Virginia and the implementation of higher interim rates in Virginia in January and February 2010.
|
||
·
|
A $20 million decrease in weather-related usage primarily due to 2% and 9% decreases in heating degree days in our eastern and western service territories, respectively.
|
||
·
|
An $18 million decrease attributable to CSPCo customers switching to alternative competitive retail electric service (CRES) providers.
|
||
·
|
Margins from Off-system Sales increased $12 million primarily due to an increase in PJM capacity revenues, partially offset by lower trading and marketing margins.
|
||
·
|
Transmission Revenues increased $8 million primarily due to increased revenues in the PJM region.
|
·
|
Other Operation and Maintenance expenses increased $14 million primarily due to:
|
|
·
|
A $41 million increase due to the write-off of a portion of the Mountaineer Carbon Capture and Storage Product Validation Facility as denied for recovery by the WVPSC in March 2011.
|
|
·
|
A $31 million increase in demand side management, energy efficiency, vegetation management programs and other related expenses. All of these expenses are currently recovered dollar-for-dollar in rate recovery riders/trackers in Gross Margin.
|
|
·
|
A $9 million increase in plant outage and other plant operating and maintenance expenses.
|
|
These increases were partially offset by:
|
||
·
|
A $33 million decrease due to the deferral of 2010 costs related to storms and our cost reduction initiative. These costs were deferred as a result of the approved modified settlement agreement in our West Virginia base rate case in March 2011.
|
|
·
|
A $20 million decrease in administrative and general expenses primarily due to a decrease in fringe benefits.
|
|
·
|
A $13 million gain on the sale of land.
|
|
·
|
Depreciation and Amortization expenses decreased $5 million primarily due to the expiration of E&R amortization of deferred carrying costs in Virginia offset by increased depreciation resulting from environmental upgrades at APCo.
|
|
·
|
Taxes Other Than Income Taxes increased $6 million primarily due to higher property taxes in Ohio.
|
|
·
|
Allowance for Equity Funds Used During Construction decreased $4 million primarily due to SWEPCo’s completed construction of the Stall Unit in June 2010.
|
|
·
|
Income Tax Expense increased $2 million primarily due to an increase in pretax book income and other book/tax differences which are accounted for on a flow-through basis and the regulatory accounting treatment of state income taxes, partially offset by the 2010 tax treatment associated with the future reimbursement of Medicare Part D retiree prescription drug benefits.
|
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
|
(dollars in millions)
|
||||||||||
Long-term Debt, including amounts due within one year
|
$
|
17,052
|
|
52.8
|
%
|
|
$
|
16,811
|
|
52.8
|
%
|
|
Short-term Debt
|
|
1,433
|
|
4.4
|
|
|
|
1,346
|
|
4.2
|
|
|
Total Debt
|
|
18,485
|
|
57.2
|
|
|
|
18,157
|
|
57.0
|
|
|
Preferred Stock of Subsidiaries
|
|
60
|
|
0.2
|
|
|
|
60
|
|
0.2
|
|
|
AEP Common Equity
|
|
13,779
|
|
42.6
|
|
|
|
13,622
|
|
42.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt and Equity Capitalization
|
$
|
32,324
|
|
100.0
|
%
|
|
$
|
31,839
|
|
100.0
|
%
|
|
|
|
Amount
|
|
|
Maturity
|
|
|
|
|
(in millions)
|
|
|
|
|
Commercial Paper Backup:
|
|
|
|
|
|
|
|
|
Revolving Credit Facility
|
|
$
|
1,454
|
|
|
April 2012
|
|
Revolving Credit Facility
|
|
|
1,500
|
|
|
June 2013
|
Total
|
|
|
2,954
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
625
|
|
|
|
|
Total Liquidity Sources
|
|
|
3,579
|
|
|
|
|
Less:
|
AEP Commercial Paper Outstanding
|
|
|
813
|
|
|
|
|
Letters of Credit Issued
|
|
|
124
|
|
|
|
|
|
|
|
|
|
|
|
Net Available Liquidity
|
|
$
|
2,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||
|
|
|
March 31,
|
||||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Cash and Cash Equivalents at Beginning of Period
|
|
$
|
294
|
|
$
|
490
|
|
Net Cash Flows from Operating Activities
|
|
|
830
|
|
|
2
|
|
Net Cash Flows Used for Investing Activities
|
|
|
(613)
|
|
|
(430)
|
|
Net Cash Flows from Financing Activities
|
|
|
114
|
|
|
756
|
|
Net Increase in Cash and Cash Equivalents
|
|
|
331
|
|
|
328
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
625
|
|
$
|
818
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||
|
|
|
March 31,
|
||||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Net Income
|
|
$
|
355
|
|
$
|
346
|
|
Depreciation and Amortization
|
|
|
403
|
|
|
408
|
|
Other
|
|
|
72
|
|
|
(752)
|
|
Net Cash Flows from Operating Activities
|
|
$
|
830
|
|
$
|
2
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||
|
|
|
March 31,
|
||||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Construction Expenditures
|
|
$
|
(540)
|
|
$
|
(609)
|
|
Acquisitions of Nuclear Fuel
|
|
|
(27)
|
|
|
(38)
|
|
Acquisition of Cushion Gas from BOA
|
|
|
(214)
|
|
|
-
|
|
Proceeds from Sales of Assets
|
|
|
69
|
|
|
139
|
|
Other
|
|
|
99
|
|
|
78
|
|
Net Cash Flows Used for Investing Activities
|
|
$
|
(613)
|
|
$
|
(430)
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||
|
|
|
March 31,
|
||||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Issuance of Common Stock, Net
|
|
$
|
31
|
|
$
|
26
|
|
Issuance/Retirement of Debt, Net
|
|
|
324
|
|
|
952
|
|
Dividends Paid on Common Stock
|
|
|
(223)
|
|
|
(197)
|
|
Other
|
|
|
(18)
|
|
|
(25)
|
|
Net Cash Flows from Financing Activities
|
|
$
|
114
|
|
$
|
756
|
|
|
|
March 31,
|
|
December 31,
|
||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Rockport Plant Unit 2 Future Minimum Lease Payments
|
|
$
|
1,774
|
|
$
|
1,774
|
|
Railcars Maximum Potential Loss From Lease Agreement
|
|
|
25
|
|
|
25
|
|
|
|
DHLC
|
|
CCPC
|
|
Conner Run
|
|||
Number of Citations for Violations of Mandatory Health or
|
|
|
|
|
|
|
|
|
|
|
|
Safety Standards under 104 *
|
|
|
-
|
|
|
-
|
|
|
-
|
Number of Orders Issued under 104(b) *
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Number of Citations and Orders for Unwarrantable Failure
|
|
|
|
|
|
|
|
|
|
|
|
to Comply with Mandatory Health or Safety Standards under
|
|
|
|
|
|
|
|
|
|
|
104(d) *
|
|
|
-
|
|
|
-
|
|
|
-
|
Number of Flagrant Violations under 110(b)(2) *
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Number of Imminent Danger Orders Issued under 107(a) *
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total Dollar Value of Proposed Assessments
|
|
$
|
2,144
|
|
$
|
-
|
|
$
|
-
|
|
Number of Mining-related Fatalities
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
* References to sections under the Mine Act
|
|
|
|
|
|
|
|
|
|
|
MTM Risk Management Contract Net Assets (Liabilities)
|
|||||||||||
|
Three Months Ended March 31, 2011
|
|||||||||||
|
|
|||||||||||
|
|
|
|
Generation
|
|
|
|
|
||||
|
|
Utility
|
and
|
|
|
|||||||
|
|
Operations
|
Marketing
|
All Other
|
Total
|
|||||||
|
|
(in millions)
|
||||||||||
Total MTM Risk Management Contract Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at December 31, 2010
|
$
|
91
|
|
$
|
140
|
|
$
|
2
|
|
$
|
233
|
(Gain) Loss from Contracts Realized/Settled During the Period and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entered in a Prior Period
|
|
(20)
|
|
|
(7)
|
|
|
(1)
|
|
|
(28)
|
Fair Value of New Contracts at Inception When Entered During the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period (a)
|
|
2
|
|
|
-
|
|
|
-
|
|
|
2
|
Net Option Premiums Received for Unexercised or Unexpired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Contracts Entered During the Period
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Changes in Fair Value Due to Market Fluctuations During the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period (b)
|
|
4
|
|
|
5
|
|
|
-
|
|
|
9
|
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
|
13
|
|
|
-
|
|
|
-
|
|
|
13
|
|
Total MTM Risk Management Contract Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at March 31, 2011
|
$
|
90
|
|
$
|
138
|
|
$
|
1
|
|
|
229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity Cash Flow Hedge Contracts
|
|
|
|
|
|
|
|
|
|
|
12
|
|
Interest Rate and Foreign Currency Cash Flow Hedge Contracts
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Fair Value Hedge Contracts
|
|
|
|
|
|
|
|
|
|
|
4
|
|
Collateral Deposits
|
|
|
|
|
|
|
|
|
|
|
63
|
|
Total MTM Derivative Contract Net Assets at March 31, 2011
|
|
|
|
|
|
|
|
|
|
$
|
305
|
(a)
|
Reflects fair value on primarily long-term structured contracts which are typically with customers that seek fixed pricing to limit their risk against fluctuating energy prices. The contract prices are valued against market curves associated with the delivery location and delivery term. A significant portion of the total volumetric position has been economically hedged.
|
(b)
|
Market fluctuations are attributable to various factors such as supply/demand, weather, etc.
|
(c)
|
Relates to the net gains (losses) of those contracts that are not reflected on the Condensed Consolidated Statements of Income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
|
|
|
Exposure
|
|
|
|
|
|
Number of
|
|
Net Exposure
|
|||||
|
|
Before
|
|
|
Counterparties
|
of
|
||||||||||
|
|
Credit
|
Credit
|
Net
|
>10% of
|
Counterparties
|
||||||||||
Counterparty Credit Quality
|
Collateral
|
Collateral
|
Exposure
|
Net Exposure
|
>10%
|
|||||||||||
|
|
|
(in millions, except number of counterparties)
|
|||||||||||||
Investment Grade
|
|
$
|
551
|
|
$
|
9
|
|
$
|
542
|
|
|
1
|
|
$
|
129
|
|
Split Rating
|
|
|
2
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
2
|
|
Noninvestment Grade
|
|
|
7
|
|
|
1
|
|
|
6
|
|
|
3
|
|
|
6
|
|
No External Ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internal Investment Grade
|
|
|
185
|
|
|
2
|
|
|
183
|
|
|
4
|
|
|
118
|
|
Internal Noninvestment Grade
|
|
|
70
|
|
|
13
|
|
|
57
|
|
|
1
|
|
|
31
|
Total as of March 31, 2011
|
|
$
|
815
|
|
$
|
25
|
|
$
|
790
|
|
|
10
|
|
$
|
286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as of December 31, 2010
|
|
$
|
946
|
|
$
|
33
|
|
$
|
913
|
|
|
7
|
|
$
|
347
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||
End
|
High
|
Average
|
Low
|
End
|
High
|
Average
|
Low
|
|||||||||||||||
(in millions)
|
(in millions)
|
|||||||||||||||||||||
$
|
-
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2
|
$
|
1
|
$
|
-
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in millions, except per-share and share amounts)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Utility Operations
|
$ | 3,497 | $ | 3,406 | ||||
Other Revenues
|
233 | 163 | ||||||
TOTAL REVENUES
|
3,730 | 3,569 | ||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
1,056 | 1,014 | ||||||
Purchased Electricity for Resale
|
275 | 238 | ||||||
Other Operation
|
686 | 673 | ||||||
Maintenance
|
265 | 271 | ||||||
Depreciation and Amortization
|
403 | 408 | ||||||
Taxes Other Than Income Taxes
|
213 | 207 | ||||||
TOTAL EXPENSES
|
2,898 | 2,811 | ||||||
|
||||||||
OPERATING INCOME
|
832 | 758 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest and Investment Income
|
2 | 3 | ||||||
Carrying Costs Income
|
15 | 14 | ||||||
Allowance for Equity Funds Used During Construction
|
20 | 24 | ||||||
Interest Expense
|
(242 | ) | (250 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
627 | 549 | ||||||
|
||||||||
Income Tax Expense
|
278 | 207 | ||||||
Equity Earnings of Unconsolidated Subsidiaries
|
6 | 4 | ||||||
|
||||||||
NET INCOME
|
355 | 346 | ||||||
|
||||||||
Less: Net Income Attributable to Noncontrolling Interests
|
1 | 1 | ||||||
|
||||||||
NET INCOME ATTRIBUTABLE TO AEP SHAREHOLDERS
|
354 | 345 | ||||||
|
||||||||
Less: Preferred Stock Dividend Requirements of Subsidiaries
|
1 | 1 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
$ | 353 | $ | 344 | ||||
|
||||||||
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
481,144,270 | 478,429,535 | ||||||
|
||||||||
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON
|
||||||||
SHAREHOLDERS
|
$ | 0.73 | $ | 0.72 | ||||
|
||||||||
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
481,365,806 | 478,844,632 | ||||||
|
||||||||
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON
|
||||||||
SHAREHOLDERS
|
$ | 0.73 | $ | 0.72 | ||||
|
||||||||
CASH DIVIDENDS DECLARED PER SHARE
|
$ | 0.46 | $ | 0.41 | ||||
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND
|
|||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
|||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
AEP Common Shareholders
|
|
|
|
|
||||||||||||||||||
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
||||||||||
|
|
|
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Noncontrolling
|
|
|
||||||||||
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Interests
|
|
Total
|
||||||||||
TOTAL EQUITY – DECEMBER 31, 2009
|
|
498
|
|
$
|
3,239
|
|
$
|
5,824
|
|
$
|
4,451
|
|
$
|
(374)
|
|
$
|
-
|
|
$
|
13,140
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Issuance of Common Stock
|
|
1
|
|
|
5
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
|
|
(196)
|
|
|
|
|
|
(1)
|
|
|
(197)
|
|||
Preferred Stock Dividend Requirements of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
(1)
|
||
Other Changes in Equity
|
|
|
|
|
|
|
|
2
|
|
|
(2)
|
|
|
|
|
|
|
|
|
-
|
|||
SUBTOTAL – EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,968
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Other Comprehensive Income, Net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash Flow Hedges, Net of Tax of $2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
4
|
|
|
|
Securities Available for Sale, Net of Tax of $-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
|
Amortization of Pension and OPEB Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs, Net of Tax of $3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
5
|
NET INCOME
|
|
|
|
|
|
|
|
|
|
|
345
|
|
|
|
|
|
1
|
|
|
346
|
|||
TOTAL COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
356
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – MARCH 31, 2010
|
|
499
|
|
$
|
3,244
|
|
$
|
5,847
|
|
$
|
4,597
|
|
$
|
(364)
|
|
$
|
-
|
|
$
|
13,324
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – DECEMBER 31, 2010
|
|
501
|
|
$
|
3,257
|
|
$
|
5,904
|
|
$
|
4,842
|
|
$
|
(381)
|
|
$
|
-
|
|
$
|
13,622
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Issuance of Common Stock
|
|
1
|
|
|
6
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
31
|
|||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
|
|
(222)
|
|
|
|
|
|
(1)
|
|
|
(223)
|
|||
Preferred Stock Dividend Requirements of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
(1)
|
||
Other Changes in Equity
|
|
|
|
|
|
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
(13)
|
|||
SUBTOTAL – EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,416
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Other Comprehensive Income, Net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash Flow Hedges, Net of Tax of $1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
|
Securities Available for Sale, Net of Tax of $-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
|
Amortization of Pension and OPEB Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs, Net of Tax of $3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
6
|
NET INCOME
|
|
|
|
|
|
|
|
|
|
|
354
|
|
|
|
|
|
1
|
|
|
355
|
|||
TOTAL COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
363
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – MARCH 31, 2011
|
|
502
|
|
$
|
3,263
|
|
$
|
5,916
|
|
$
|
4,973
|
|
$
|
(373)
|
|
$
|
-
|
|
$
|
13,779
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Consolidated Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in millions)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 625 | $ | 294 | ||||
Other Temporary Investments
|
||||||||
(March 31, 2011 and December 31, 2010 amounts include $212 and $287, respectively, related to Transition Funding and EIS)
|
296 | 416 | ||||||
Accounts Receivable:
|
||||||||
Customers
|
627 | 683 | ||||||
Accrued Unbilled Revenues
|
138 | 195 | ||||||
Pledged Accounts Receivable - AEP Credit
|
914 | 949 | ||||||
Miscellaneous
|
106 | 137 | ||||||
Allowance for Uncollectible Accounts
|
(36 | ) | (41 | ) | ||||
Total Accounts Receivable
|
1,749 | 1,923 | ||||||
Fuel
|
714 | 837 | ||||||
Materials and Supplies
|
614 | 611 | ||||||
Risk Management Assets
|
193 | 232 | ||||||
Accrued Tax Benefits
|
301 | 389 | ||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
70 | 81 | ||||||
Margin Deposits
|
70 | 88 | ||||||
Prepayments and Other Current Assets
|
157 | 145 | ||||||
TOTAL CURRENT ASSETS
|
4,789 | 5,016 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
24,766 | 24,352 | ||||||
Transmission
|
8,677 | 8,576 | ||||||
Distribution
|
14,338 | 14,208 | ||||||
Other Property, Plant and Equipment (including nuclear fuel and coal mining)
|
3,835 | 3,846 | ||||||
Construction Work in Progress
|
2,480 | 2,758 | ||||||
Total Property, Plant and Equipment
|
54,096 | 53,740 | ||||||
Accumulated Depreciation and Amortization
|
18,330 | 18,066 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT - NET
|
35,766 | 35,674 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
4,957 | 4,943 | ||||||
Securitized Transition Assets
|
1,707 | 1,742 | ||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
1,559 | 1,515 | ||||||
Goodwill
|
76 | 76 | ||||||
Long-term Risk Management Assets
|
359 | 410 | ||||||
Deferred Charges and Other Noncurrent Assets
|
1,347 | 1,079 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
10,005 | 9,765 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 50,560 | $ | 50,455 | ||||
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements.
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
||||||||||||||
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||
March 31, 2011 and December 31, 2010
|
||||||||||||||||
(dollars in millions)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
2011
|
2010
|
||||||||||||||
CURRENT LIABILITIES
|
|
|||||||||||||||
Accounts Payable
|
$ | 884 | $ | 1,061 | ||||||||||||
Short-term Debt:
|
||||||||||||||||
Securitized Debt for Receivables - AEP Credit
|
620 | 690 | ||||||||||||||
Other Short-term Debt
|
813 | 656 | ||||||||||||||
Total Short-term Debt
|
1,433 | 1,346 | ||||||||||||||
Long-term Debt Due Within One Year
|
1,421 | 1,309 | ||||||||||||||
Risk Management Liabilities
|
109 | 129 | ||||||||||||||
Customer Deposits
|
275 | 273 | ||||||||||||||
Accrued Taxes
|
669 | 702 | ||||||||||||||
Accrued Interest
|
248 | 281 | ||||||||||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
20 | 17 | ||||||||||||||
Deferred Gain and Accrued Litigation Costs
|
- | 448 | ||||||||||||||
Other Current Liabilities
|
930 | 952 | ||||||||||||||
TOTAL CURRENT LIABILITIES
|
5,989 | 6,518 | ||||||||||||||
|
||||||||||||||||
NONCURRENT LIABILITIES
|
||||||||||||||||
Long-term Debt
|
||||||||||||||||
(March 31, 2011 and December 31, 2010 amounts include $1,733 and $1,857, respectively, related to Transition Funding, DCC Fuel and Sabine)
|
15,631 | 15,502 | ||||||||||||||
Long-term Risk Management Liabilities
|
138 | 141 | ||||||||||||||
Deferred Income Taxes
|
7,490 | 7,359 | ||||||||||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
3,204 | 3,171 | ||||||||||||||
Asset Retirement Obligations
|
1,413 | 1,394 | ||||||||||||||
Employee Benefits and Pension Obligations
|
1,863 | 1,893 | ||||||||||||||
Deferred Credits and Other Noncurrent Liabilities
|
993 | 795 | ||||||||||||||
TOTAL NONCURRENT LIABILITIES
|
30,732 | 30,255 | ||||||||||||||
|
||||||||||||||||
TOTAL LIABILITIES
|
36,721 | 36,773 | ||||||||||||||
|
||||||||||||||||
Cumulative Preferred Stock Not Subject to Mandatory Redemption
|
60 | 60 | ||||||||||||||
|
||||||||||||||||
Rate Matters (Note 2)
|
||||||||||||||||
Commitments and Contingencies (Note 3)
|
||||||||||||||||
|
||||||||||||||||
EQUITY
|
||||||||||||||||
Common Stock – Par Value – $6.50 Per Share:
|
||||||||||||||||
|
2011
|
2010
|
||||||||||||||
Shares Authorized
|
600,000,000 | 600,000,000 | ||||||||||||||
Shares Issued
|
502,009,606 | 501,114,881 | ||||||||||||||
(20,307,725 shares were held in treasury at March 31, 2011 and December 31, 2010)
|
3,263 | 3,257 | ||||||||||||||
Paid-in Capital
|
5,916 | 5,904 | ||||||||||||||
Retained Earnings
|
4,973 | 4,842 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss)
|
(373 | ) | (381 | ) | ||||||||||||
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY
|
13,779 | 13,622 | ||||||||||||||
|
||||||||||||||||
TOTAL EQUITY
|
13,779 | 13,622 | ||||||||||||||
|
||||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 50,560 | $ | 50,455 | ||||||||||||
|
||||||||||||||||
See Condensed Notes to Condensed Consolidated Financial Statements.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in millions)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 355 | $ | 346 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
||||||||
Depreciation and Amortization
|
403 | 408 | ||||||
Deferred Income Taxes
|
330 | 121 | ||||||
Gain on Settlement with BOA and Enron
|
(51 | ) | - | |||||
Settlement of Litigation with BOA and Enron
|
(211 | ) | - | |||||
Carrying Costs Income
|
(15 | ) | (14 | ) | ||||
Allowance for Equity Funds Used During Construction
|
(20 | ) | (24 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
42 | (69 | ) | |||||
Amortization of Nuclear Fuel
|
34 | 30 | ||||||
Property Taxes
|
(52 | ) | (53 | ) | ||||
Fuel Over/Under-Recovery, Net
|
(27 | ) | (97 | ) | ||||
Change in Other Noncurrent Assets
|
(3 | ) | (28 | ) | ||||
Change in Other Noncurrent Liabilities
|
77 | 37 | ||||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
181 | (617 | ) | |||||
Fuel, Materials and Supplies
|
121 | 83 | ||||||
Margin Deposits
|
18 | (20 | ) | |||||
Accounts Payable
|
(126 | ) | (83 | ) | ||||
Customer Deposits
|
2 | 5 | ||||||
Accrued Taxes, Net
|
(96 | ) | 80 | |||||
Accrued Interest
|
(33 | ) | (34 | ) | ||||
Other Current Assets
|
(16 | ) | (14 | ) | ||||
Other Current Liabilities
|
(83 | ) | (55 | ) | ||||
Net Cash Flows from Operating Activities
|
830 | 2 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(540 | ) | (609 | ) | ||||
Change in Other Temporary Investments, Net
|
73 | 82 | ||||||
Purchases of Investment Securities
|
(454 | ) | (445 | ) | ||||
Sales of Investment Securities
|
484 | 473 | ||||||
Acquisitions of Nuclear Fuel
|
(27 | ) | (38 | ) | ||||
Acquisition of Cushion Gas from BOA
|
(214 | ) | - | |||||
Proceeds from Sales of Assets
|
69 | 139 | ||||||
Other Investing Activities
|
(4 | ) | (32 | ) | ||||
Net Cash Flows Used for Investing Activities
|
(613 | ) | (430 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Common Stock, Net
|
31 | 26 | ||||||
Issuance of Long-term Debt
|
1,014 | 652 | ||||||
Commercial Paper and Credit Facility Borrowings
|
318 | 24 | ||||||
Change in Short-term Debt, Net
|
244 | 931 | ||||||
Retirement of Long-term Debt
|
(777 | ) | (638 | ) | ||||
Commercial Paper and Credit Facility Repayments
|
(475 | ) | (17 | ) | ||||
Principal Payments for Capital Lease Obligations
|
(17 | ) | (24 | ) | ||||
Dividends Paid on Common Stock
|
(223 | ) | (197 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
(1 | ) | (1 | ) | ||||
Net Cash Flows from Financing Activities
|
114 | 756 | ||||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
331 | 328 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
294 | 490 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 625 | $ | 818 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 250 | $ | 271 | ||||
Net Cash Paid (Received) for Income Taxes
|
2 | (2 | ) | |||||
Noncash Acquisitions Under Capital Leases
|
24 | 148 | ||||||
Government Grants Included in Accounts Receivable at March 31,
|
3 | - | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
220 | 216 | ||||||
Acquisition of Nuclear Fuel Included in Current Liabilities at March 31,
|
- | 3 | ||||||
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements.
|
1.
|
Significant Accounting Matters
|
2.
|
Rate Matters
|
3.
|
Commitments, Guarantees and Contingencies
|
4.
|
Acquisition and Dispositions
|
5.
|
Benefit Plans
|
6.
|
Business Segments
|
7.
|
Derivatives and Hedging
|
8.
|
Fair Value Measurements
|
9.
|
Income Taxes
|
10.
|
Financing Activities
|
11.
|
Cost Reduction Initiatives
|
|
CONDENSED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||
VARIABLE INTEREST ENTITIES
|
|||||||||||||||
March 31, 2011
|
|||||||||||||||
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWEPCo
|
|
I&M
|
|
Protected Cell
|
|
|
|
Transition
|
|||||
|
|
Sabine
|
DCC Fuel
|
of EIS
|
AEP Credit
|
|
Funding
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
$
|
40
|
|
$
|
107
|
|
$
|
146
|
|
$
|
902
|
|
$
|
130
|
Net Property, Plant and Equipment
|
|
|
142
|
|
|
151
|
|
|
-
|
|
|
-
|
|
|
-
|
Other Noncurrent Assets
|
|
|
37
|
|
|
93
|
|
|
8
|
|
|
-
|
|
|
1,711
|
Total Assets
|
|
$
|
219
|
|
$
|
351
|
|
$
|
154
|
|
$
|
902
|
|
$
|
1,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
$
|
44
|
|
$
|
81
|
|
$
|
62
|
|
$
|
824
|
|
$
|
202
|
Noncurrent Liabilities
|
|
|
175
|
|
|
270
|
|
|
74
|
|
|
1
|
|
|
1,625
|
Equity
|
|
|
-
|
|
|
-
|
|
|
18
|
|
|
77
|
|
|
14
|
Total Liabilities and Equity
|
|
$
|
219
|
|
$
|
351
|
|
$
|
154
|
|
$
|
902
|
|
$
|
1,841
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||
VARIABLE INTEREST ENTITIES
|
|||||||||||||||
December 31, 2010
|
|||||||||||||||
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWEPCo
|
|
I&M
|
|
Protected Cell
|
|
|
|
Transition
|
|||||
|
|
Sabine
|
DCC Fuel
|
of EIS
|
AEP Credit
|
|
Funding
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
$
|
50
|
|
$
|
92
|
|
$
|
131
|
|
$
|
924
|
|
$
|
214
|
Net Property, Plant and Equipment
|
|
|
139
|
|
|
173
|
|
|
-
|
|
|
-
|
|
|
-
|
Other Noncurrent Assets
|
|
|
34
|
|
|
112
|
|
|
1
|
|
|
10
|
|
|
1,746
|
Total Assets
|
|
$
|
223
|
|
$
|
377
|
|
$
|
132
|
|
$
|
934
|
|
$
|
1,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
$
|
33
|
|
$
|
79
|
|
$
|
33
|
|
$
|
886
|
|
$
|
221
|
Noncurrent Liabilities
|
|
|
190
|
|
|
298
|
|
|
85
|
|
|
1
|
|
|
1,725
|
Equity
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
47
|
|
|
14
|
Total Liabilities and Equity
|
|
$
|
223
|
|
$
|
377
|
|
$
|
132
|
|
$
|
934
|
|
$
|
1,960
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
As Reported on
|
|
|
|
As Reported on
|
|
|
||||
|
the Consolidated
|
Maximum
|
|
the Consolidated
|
|
Maximum
|
|||||
|
Balance Sheet
|
Exposure
|
|
Balance Sheet
|
|
Exposure
|
|||||
|
(in millions)
|
||||||||||
Capital Contribution from SWEPCo
|
$
|
8
|
|
$
|
8
|
|
$
|
6
|
|
$
|
6
|
Retained Earnings
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
SWEPCo's Guarantee of Debt
|
|
-
|
|
|
46
|
|
|
-
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment in DHLC
|
$
|
9
|
|
$
|
55
|
|
$
|
8
|
|
$
|
56
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
As Reported on
|
|
|
|
|
As Reported on
|
|
|
|
||
|
the Consolidated
|
Maximum
|
the Consolidated
|
Maximum
|
|||||||
|
Balance Sheet
|
Exposure
|
Balance Sheet
|
Exposure
|
|||||||
|
|
|
(in millions)
|
|
|
|
|||||
Capital Contribution from AEP
|
$
|
19
|
|
$
|
19
|
|
$
|
18
|
|
$
|
18
|
Retained Earnings
|
|
7
|
|
|
7
|
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment in PATH-WV
|
$
|
26
|
|
$
|
26
|
|
$
|
24
|
|
$
|
24
|
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
|
2011
|
|
2010
|
||||||||
|
|
|
(in millions, except per share data)
|
||||||||||
|
|
|
|
|
|
$/share
|
|
|
|
|
$/share
|
||
Earnings Applicable to AEP Common Shareholders
|
|
$
|
353
|
|
|
|
|
$
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Basic Shares Outstanding
|
|
|
481.1
|
|
$
|
0.73
|
|
|
478.4
|
|
$
|
0.72
|
|
Weighted Average Dilutive Effect of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Share Units
|
|
|
-
|
|
|
-
|
|
|
0.3
|
|
|
-
|
|
Stock Options
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restricted Stock Units
|
|
|
0.2
|
|
|
-
|
|
|
0.1
|
|
|
-
|
Weighted Average Number of Diluted Shares Outstanding
|
|
|
481.4
|
|
$
|
0.73
|
|
|
478.8
|
|
$
|
0.72
|
Supplementary Information
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
||||
Related Party Transactions
|
|
2011
|
|
2010
|
|
|||||
|
|
|
(in millions)
|
|
||||||
AEP Consolidated Revenues – Utility Operations:
|
|
|
|
|
|
|
|
|||
|
Ohio Valley Electric Corporation (43.47% owned) |
|
$
|
-
|
|
$
|
(9)
|
(a)
|
||
AEP Consolidated Revenues – Other Revenues:
|
|
|
|
|
|
|
|
|||
|
Ohio Valley Electric Corporation – Barging and Other |
|
|
|
|
|
|
|
||
|
|
Transportation Services (43.47% Owned) |
|
|
7
|
|
|
8
|
|
|
AEP Consolidated Expenses – Purchased Electricity
|
|
|
|
|
|
|
|
|||
|
for Resale:
|
|
|
|
|
|
|
|
||
|
Ohio Valley Electric Corporation (43.47% Owned) |
|
|
86
|
(b)
|
|
77
|
(c)
|
|
The AEP Power Pool purchased power from OVEC to serve off-system sales in an agreement that began in January 2010 and ended in June 2010.
|
|
In March 2011, the AEP Power Pool began purchasing power from OVEC to serve retail sales through June 2011. The total amount reported includes $8 million related to this agreement.
|
|
The AEP Power Pool purchased power from OVEC to serve retail sales in an agreement that began in January 2010 and ended in June 2010. The total amount reported includes $6 million related to this agreement.
|
Regulatory Assets Not Yet Being Recovered
|
|
|
|
|
|
|
||
|
|
|
|
March 31,
|
|
December 31,
|
||
|
|
|
|
2011
|
|
2010
|
||
|
|
|
|
(in millions)
|
||||
|
Noncurrent Regulatory Assets (excluding fuel)
|
|
|
|
|
|
|
|
|
Regulatory assets not yet being recovered pending future proceedings
|
|
|
|
|
|
|
|
|
|
to determine the recovery method and timing:
|
|
|
|
|
|
|
|
Regulatory Assets Currently Earning a Return
|
|
|
|
|
|
|
|
|
|
Customer Choice Deferrals - CSPCo, OPCo (a)
|
|
$
|
59
|
|
$
|
59
|
|
|
Line Extension Carrying Costs - CSPCo, OPCo (a)
|
|
|
58
|
|
|
55
|
|
|
Storm Related Costs - CSPCo, OPCo (a)
|
|
|
31
|
|
|
30
|
|
|
Storm Related Costs - TCC
|
|
|
25
|
|
|
25
|
|
|
Acquisition of Monongahela Power - CSPCo (a)
|
|
|
8
|
|
|
8
|
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
7
|
|
|
7
|
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
|
|
|
Environmental Rate Adjustment Clause - APCo
|
|
|
56
|
|
|
56
|
|
|
Storm Related Costs - APCo, KGPCo, PSO, SWEPCo
|
|
|
45
|
|
|
45
|
|
|
Deferred Wind Power Costs - APCo
|
|
|
34
|
|
|
29
|
|
|
Mountaineer Carbon Capture and Storage Product Validation Facility - APCo (b)
|
|
|
19
|
|
|
60
|
|
|
Special Rate Mechanism for Century Aluminum - APCo
|
|
|
13
|
|
|
13
|
|
|
Acquisition of Monongahela Power - CSPCo (a)
|
|
|
4
|
|
|
4
|
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
5
|
|
|
4
|
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
364
|
|
$
|
395
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Requested to be recovered in a distribution asset recovery rider. See the "Ohio Distribution Base Rate Case" section below.
|
||||||
|
(b)
|
APCo wrote off a portion of the Mountaineer Carbon Capture and Storage Product Validation Facility as denied for recovery by the WVPSC in March 2011. See "Mountaineer Carbon Capture and Storage Project Product Validation Facility" section below.
|
·
|
The Texas District Court judge determined that the PUCT erred by applying an invalid rule to determine the carrying cost rate for the true-up of stranded costs. The Texas Court of Appeals reversed the District Court’s unfavorable decision. An October 2010 decision of the Supreme Court of Texas addressing the same issue for another utility upholds the Court of Appeals determination.
|
·
|
The Texas District Court judge determined that the PUCT improperly reduced TCC’s net stranded plant costs for commercial unreasonableness. This favorable decision was affirmed by the Texas Court of Appeals.
|
·
|
The Texas Court of Appeals determined that the PUCT erred by not reducing stranded costs by the “excess earnings” that had already been refunded to affiliated Retail Electric Providers (REPs). A March 2011 decision by the Supreme Court of Texas addressing the same issue for another utility overturned the Texas
|
|
Court of Appeals decision. If the Supreme Court of Texas does not overturn TCC’s Texas Court of Appeals decision, it could be unfavorable unless the PUCT allows TCC to recover the refunds previously made to the REPs. See the “TCC Excess Earnings” section below.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||
|
March 31, 2011
|
||
|
(in millions)
|
||
Income Statement:
|
|
|
|
Other Operation Expense - Pretax Gain on Settlement
|
$
|
|
51
|
Income Tax Expense
|
|
|
73
|
Net Loss After Tax
|
$
|
|
(22)
|
|
|
|
|
Cash Flow Statement:
|
|
|
|
Net Income - Loss on Settlement with BOA and Enron
|
$
|
|
(22)
|
Deferred Income Taxes
|
|
|
91
|
Gain on Settlement with BOA and Enron
|
|
|
(51)
|
Settlement of Litigation with BOA and Enron
|
|
|
(211)
|
Accrued Taxes, Net
|
|
|
(18)
|
Acquisition of Cushion Gas from BOA
|
|
|
(214)
|
Cash Paid
|
$
|
|
(425)
|
|
|
|
|
|
March 31, 2011
|
||
|
(in millions)
|
||
Balance Sheet:
|
|
|
|
Deferred Charges and Other Noncurrent Assets - Gas Acquired
|
$
|
|
214
|
Deferred Credits and Other Noncurrent Liabilities - Gas Service Liability
|
|
|
187
|
Accrued Taxes - Tax Benefit on Settlement with BOA and Enron
|
|
|
18
|
Deferred Income Taxes - Deferred Tax Benefit on Gas Service Liability
|
|
|
66
|
|
|
|
Other Postretirement
|
||||||||
|
Pension Plans
|
|
Benefit Plans
|
||||||||
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
|
(in millions)
|
||||||||||
Service Cost
|
$
|
18
|
|
$
|
28
|
|
$
|
11
|
|
$
|
12
|
Interest Cost
|
|
59
|
|
|
63
|
|
|
27
|
|
|
28
|
Expected Return on Plan Assets
|
|
(79)
|
|
|
(78)
|
|
|
(27)
|
|
|
(26)
|
Amortization of Transition Obligation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
Amortization of Net Actuarial Loss
|
|
30
|
|
|
22
|
|
|
7
|
|
|
7
|
Net Periodic Benefit Cost
|
$
|
28
|
|
$
|
35
|
|
$
|
18
|
|
$
|
28
|
·
|
Generation of electricity for sale to U.S. retail and wholesale customers.
|
·
|
Electricity transmission and distribution in the U.S.
|
·
|
Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.
|
·
|
Wind farms and marketing and risk management activities primarily in ERCOT and to a lesser extent Ohio in PJM and MISO.
|
·
|
Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense, and other nonallocated costs.
|
·
|
Forward natural gas contracts that were not sold with our natural gas pipeline and storage operations in 2004 and 2005. These contracts are financial derivatives which settle and expire in the fourth quarter of 2011.
|
·
|
Revenue sharing related to the Plaquemine Cogeneration Facility which ends in the fourth quarter of 2011.
|
|
|
Nonutility Operations
|
|
|
|
|||||||||||||||||||
|
|
|
Generation
|
|
|
|
||||||||||||||||||
|
Utility
|
AEP River
|
and
|
All Other
|
Reconciling
|
|
||||||||||||||||||
|
Operations
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
||||||||||||||||||
|
(in millions)
|
|||||||||||||||||||||||
Three Months Ended March 31, 2011
|
|
|
|
|
|
|
||||||||||||||||||
Revenues from:
|
|
|
|
|
|
|
||||||||||||||||||
External Customers
|
$ | 3,497 | $ | 167 | $ | 62 | $ | 4 | $ | - | $ | 3,730 | ||||||||||||
Other Operating Segments
|
27 | 5 | 1 | 1 | (34 | ) | - | |||||||||||||||||
Total Revenues
|
$ | 3,524 | $ | 172 | $ | 63 | $ | 5 | $ | (34 | ) | $ | 3,730 | |||||||||||
|
||||||||||||||||||||||||
Net Income (Loss)
|
$ | 378 | $ | 7 | $ | 1 | $ | (31 | ) | $ | - | $ | 355 | |||||||||||
|
||||||||||||||||||||||||
|
Nonutility Operations
|
|||||||||||||||||||||||
|
Generation
|
|||||||||||||||||||||||
|
Utility
|
AEP River
|
and
|
All Other
|
Reconciling
|
|||||||||||||||||||
|
Operations
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
||||||||||||||||||
|
(in millions)
|
|||||||||||||||||||||||
Three Months Ended March 31, 2010
|
||||||||||||||||||||||||
Revenues from:
|
||||||||||||||||||||||||
External Customers
|
$ | 3,406 | $ | 121 | $ | 47 | $ | (5 | ) | $ | - | $ | 3,569 | |||||||||||
Other Operating Segments
|
20 | 5 | - | 8 | (33 | ) | - | |||||||||||||||||
Total Revenues
|
$ | 3,426 | $ | 126 | $ | 47 | $ | 3 | $ | (33 | ) | $ | 3,569 | |||||||||||
|
||||||||||||||||||||||||
Net Income (Loss)
|
$ | 344 | $ | 3 | $ | 10 | $ | (11 | ) | $ | - | $ | 346 |
|
|
|
|
|
|
Nonutility Operations
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Generation
|
|
|
Reconciling
|
|
|
|
||||||
|
|
|
Utility
|
AEP River
|
and
|
All Other
|
Adjustments
|
|
|
|
||||||||||
|
|
|
Operations
|
Operations
|
Marketing
|
(a)
|
(b)
|
|
Consolidated
|
|||||||||||
|
|
|
|
(in millions)
|
||||||||||||||||
March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Property, Plant and Equipment
|
|
$
|
53,162
|
$
|
589
|
$
|
593
|
$
|
10
|
$
|
(258)
|
|
$
|
54,096
|
||||||
Accumulated Depreciation and Amortization
|
|
|
18,049
|
|
117
|
|
204
|
|
9
|
|
(49)
|
|
|
18,330
|
||||||
Total Property, Plant and Equipment - Net
|
|
$
|
35,113
|
$
|
472
|
$
|
389
|
$
|
1
|
$
|
(209)
|
|
$
|
35,766
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Assets
|
|
$
|
48,772
|
$
|
652
|
$
|
835
|
$
|
15,713
|
$
|
(15,412)
|
(c)
|
$
|
50,560
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
Nonutility Operations
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Generation
|
|
|
Reconciling
|
|
|
|
||||||
|
|
|
Utility
|
AEP River
|
and
|
All Other
|
Adjustments
|
|
|
|
||||||||||
|
|
|
Operations
|
Operations
|
Marketing
|
(a)
|
(b)
|
|
Consolidated
|
|||||||||||
|
|
|
|
(in millions)
|
||||||||||||||||
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Property, Plant and Equipment
|
|
$
|
52,822
|
$
|
574
|
$
|
584
|
$
|
11
|
$
|
(251)
|
|
$
|
53,740
|
||||||
Accumulated Depreciation and Amortization
|
|
|
17,795
|
|
110
|
|
198
|
|
9
|
|
(46)
|
|
|
18,066
|
||||||
Total Property, Plant and Equipment - Net
|
|
$
|
35,027
|
$
|
464
|
$
|
386
|
$
|
2
|
$
|
(205)
|
|
$
|
35,674
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Assets
|
|
$
|
48,780
|
$
|
621
|
$
|
881
|
$
|
15,942
|
$
|
(15,769)
|
(c)
|
$
|
50,455
|
(a)
|
All Other includes:
|
·
|
Parent's guarantee revenue received from affiliates, investment income, interest income and interest expense, and other nonallocated costs.
|
·
|
Forward natural gas contracts that were not sold with our natural gas pipeline and storage operations in 2004 and 2005. These contracts are financial derivatives which settle and expire in the fourth quarter of 2011.
|
·
|
Revenue sharing related to the Plaquemine Cogeneration Facility which ends in the fourth quarter of 2011.
|
(b)
|
Includes eliminations due to an intercompany capital lease.
|
(c)
|
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP's investments in subsidiary companies.
|
Notional Volume of Derivative Instruments
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
||||
|
|
|
March 31,
|
|
December 31,
|
|
Unit of
|
||
|
|
2011
|
|
2010
|
|
Measure
|
|||
|
|
|
(in millions)
|
|
|||||
Commodity:
|
|
|
|
|
|
|
|
|
|
|
Power
|
|
|
539
|
|
|
652
|
|
MWHs
|
|
Coal
|
|
|
60
|
|
|
63
|
|
Tons
|
|
Natural Gas
|
|
|
89
|
|
|
94
|
|
MMBtus
|
|
Heating Oil and Gasoline
|
|
|
6
|
|
|
6
|
|
Gallons
|
|
Interest Rate
|
|
$
|
273
|
|
$
|
171
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
Interest Rate and Foreign Currency
|
|
$
|
503
|
|
$
|
907
|
|
USD
|
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND THE IMPACT ON OUR FINANCIAL STATEMENTS
|
Fair Value of Derivative Instruments
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|||||||||||||||
|
|
|
Risk Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
|||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a)(b)
|
|
Total
|
||||||
|
|
|
(in millions)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
833
|
|
$
|
21
|
|
$
|
5
|
|
$
|
(666)
|
|
$
|
193
|
|
Long-term Risk Management Assets
|
|
|
526
|
|
|
11
|
|
|
1
|
|
|
(179)
|
|
|
359
|
|
Total Assets
|
|
|
1,359
|
|
|
32
|
|
|
6
|
|
|
(845)
|
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
807
|
|
|
13
|
|
|
2
|
|
|
(713)
|
|
|
109
|
|
Long-term Risk Management Liabilities
|
|
|
364
|
|
|
7
|
|
|
3
|
|
|
(236)
|
|
|
138
|
|
Total Liabilities
|
|
|
1,171
|
|
|
20
|
|
|
5
|
|
|
(949)
|
|
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Liabilities)
|
|
$
|
188
|
|
$
|
12
|
|
$
|
1
|
|
$
|
104
|
|
$
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|||||||||||||||
|
|
|
Risk Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
|||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a)(b)
|
|
Total
|
||||||
|
|
|
(in millions)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
1,023
|
|
$
|
18
|
|
$
|
30
|
|
$
|
(839)
|
|
$
|
232
|
|
Long-term Risk Management Assets
|
|
|
546
|
|
|
12
|
|
|
2
|
|
|
(150)
|
|
|
410
|
|
Total Assets
|
|
|
1,569
|
|
|
30
|
|
|
32
|
|
|
(989)
|
|
|
642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
995
|
|
|
13
|
|
|
2
|
|
|
(881)
|
|
|
129
|
|
Long-term Risk Management Liabilities
|
|
|
387
|
|
|
6
|
|
|
3
|
|
|
(255)
|
|
|
141
|
|
Total Liabilities
|
|
|
1,382
|
|
|
19
|
|
|
5
|
|
|
(1,136)
|
|
|
270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Liabilities)
|
|
$
|
187
|
|
$
|
11
|
|
$
|
27
|
|
$
|
147
|
|
$
|
372
|
|
Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the Condensed Consolidated Balance Sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."
|
|
(b)
|
Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include dedesignated risk management contracts.
|
Amount of Gain (Loss) Recognized on
|
|||||||
Risk Management Contracts
|
|||||||
For the Three Months Ended March 31, 2011 and 2010
|
|||||||
|
|
|
|
|
|
|
|
Location of Gain (Loss)
|
|
2011
|
|
|
2010
|
||
|
|
(in millions)
|
|||||
Utility Operations Revenue
|
|
$
|
20
|
|
$
|
38
|
|
Other Revenue
|
|
|
2
|
|
|
1
|
|
Regulatory Assets (a)
|
|
|
2
|
|
|
-
|
|
Regulatory Liabilities (a)
|
|
|
8
|
|
|
42
|
|
Total Gain on Risk Management Contracts
|
|
$
|
32
|
|
$
|
81
|
|
(a) Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or
noncurrent on the balance sheet.
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||
For the Three Months Ended March 31, 2011
|
|||||||||||
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|
|
|
|
Commodity
|
|
Currency
|
|
Total
|
|||
|
|
|
|
(in millions)
|
|||||||
Balance in AOCI as of December 31, 2010
|
|
$
|
7
|
|
$
|
4
|
|
$
|
11
|
||
Changes in Fair Value Recognized in AOCI
|
|
|
2
|
|
|
(1)
|
|
|
1
|
||
Amount of (Gain) or Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
|
||
|
to Income Statement/within Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Operations Revenue
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Other Revenue
|
|
|
(1)
|
|
|
-
|
|
|
(1)
|
|
|
Purchased Electricity for Resale
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Interest Expense
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
Regulatory Assets (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Regulatory Liabilities (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
Balance in AOCI as of March 31, 2011
|
|
$
|
8
|
|
$
|
4
|
|
$
|
12
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||
For the Three Months Ended March 31, 2010
|
|||||||||||
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|
|
|
|
Commodity
|
|
Currency
|
|
Total
|
|||
|
|
|
|
(in millions)
|
|||||||
Balance in AOCI as of December 31, 2009
|
|
$
|
(2)
|
|
$
|
(13)
|
|
$
|
(15)
|
||
Changes in Fair Value Recognized in AOCI
|
|
|
3
|
|
|
(1)
|
|
|
2
|
||
Amount of (Gain) or Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
|
||
|
to Income Statement/within Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Operations Revenue
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Other Revenue
|
|
|
(1)
|
|
|
-
|
|
|
(1)
|
|
|
Purchased Electricity for Resale
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
Interest Expense
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
Regulatory Assets (a)
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
Regulatory Liabilities (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
Balance in AOCI as of March 31, 2010
|
|
$
|
2
|
|
$
|
(13)
|
|
$
|
(11)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either
|
||||||||||
|
|
current or noncurrent on the balance sheet.
|
Impact of Cash Flow Hedges on our Condensed Consolidated Balance Sheet
|
|||||||||||
March 31, 2011
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|
|
|
|
Commodity
|
|
Currency
|
|
Total
|
|||
|
|
|
|
(in millions)
|
|||||||
Hedging Assets (a)
|
|
$
|
14
|
|
$
|
-
|
|
$
|
14
|
||
Hedging Liabilities (a)
|
|
|
(2)
|
|
|
(3)
|
|
|
(5)
|
||
AOCI Gain (Loss) Net of Tax
|
|
|
8
|
|
|
4
|
|
|
12
|
||
Portion Expected to be Reclassified to Net
|
|
|
|
|
|
|
|
|
|
||
|
Income During the Next Twelve Months
|
|
|
5
|
|
|
(2)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of Cash Flow Hedges on our Condensed Consolidated Balance Sheet
|
|||||||||||
December 31, 2010
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|
|
|
|
Commodity
|
|
Currency
|
|
Total
|
|||
|
|
|
|
(in millions)
|
|||||||
Hedging Assets (a)
|
|
$
|
13
|
|
$
|
25
|
|
$
|
38
|
||
Hedging Liabilities (a)
|
|
|
(2)
|
|
|
(4)
|
|
|
(6)
|
||
AOCI Gain (Loss) Net of Tax
|
|
|
7
|
|
|
4
|
|
|
11
|
||
Portion Expected to be Reclassified to Net
|
|
|
|
|
|
|
|
|
|
||
|
Income During the Next Twelve Months
|
|
|
3
|
|
|
(2)
|
|
|
1
|
Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on our Condensed Consolidated Balance Sheets.
|
|
|
|
March 31,
|
|
December 31,
|
||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Liabilities for Derivative Contracts with Credit Downgrade Triggers
|
|
$
|
19
|
|
$
|
20
|
|
Amount of Collateral AEP Subsidiaries Would Have Been
|
|
|
|
|
|
|
|
|
Required to Post
|
|
|
52
|
|
|
45
|
Amount Attributable to RTO and ISO Activities
|
|
|
50
|
|
|
44
|
|
|
March 31,
|
|
December 31,
|
||
|
|
2011
|
|
2010
|
||
|
|
(in millions)
|
||||
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
|
|
|
|
|
|
|
Netting Arrangements
|
|
$
|
364
|
|
$
|
401
|
Amount of Cash Collateral Posted
|
|
|
29
|
|
|
81
|
Additional Settlement Liability if Cross Default Provision is Triggered
|
|
|
206
|
|
|
213
|
|
|
Type of Fixed Income Security
|
||||
|
|
United States
|
|
|
|
State and Local
|
Type of Input
|
|
Government
|
|
Corporate Debt
|
|
Government
|
|
|
|
|
|
|
|
Benchmark Yields
|
|
X
|
|
X
|
|
X
|
Broker Quotes
|
|
X
|
|
X
|
|
X
|
Discount Margins
|
|
X
|
|
X
|
|
|
Treasury Market Update
|
|
X
|
|
|
|
|
Base Spread
|
|
X
|
|
X
|
|
X
|
Corporate Actions
|
|
|
|
X
|
|
|
Ratings Agency Updates
|
|
|
|
X
|
|
X
|
Prepayment Schedule and
|
|
|
|
|
|
|
History
|
|
|
|
|
|
X
|
Yield Adjustments
|
|
X
|
|
|
|
|
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
|
Book Value
|
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
||||
|
|
(in millions)
|
||||||||||
Long-term Debt
|
|
$
|
17,052
|
|
$
|
18,324
|
|
$
|
16,811
|
|
$
|
18,285
|
|
|
|
|
March 31, 2011
|
|
||||||||||
|
|
|
|
|
|
Gross
|
|
Gross
|
|
Estimated
|
|
||||
|
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|||||
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|||||||
|
|
|
|
(in millions)
|
|
||||||||||
Restricted Cash (a)
|
|
$
|
151
|
|
$
|
-
|
|
$
|
-
|
|
$
|
151
|
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
|
70
|
|
|
-
|
|
|
-
|
|
|
70
|
|
|
|
Variable Rate Demand Notes
|
|
|
49
|
|
|
-
|
|
|
-
|
|
|
49
|
|
|
Equity Securities - Mutual Funds
|
|
|
18
|
|
|
8
|
|
|
-
|
|
|
26
|
|
||
Total Other Temporary Investments
|
|
$
|
288
|
|
$
|
8
|
|
$
|
-
|
|
$
|
296
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|
||||||||||
|
|
|
|
|
|
Gross
|
|
Gross
|
|
Estimated
|
|
||||
|
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
||||
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||||
|
|
|
|
(in millions)
|
|
||||||||||
Restricted Cash (a)
|
|
$
|
225
|
|
$
|
-
|
|
$
|
-
|
|
$
|
225
|
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
|
69
|
|
|
-
|
|
|
-
|
|
|
69
|
|
|
|
Variable Rate Demand Notes
|
|
|
97
|
|
|
-
|
|
|
-
|
|
|
97
|
|
|
Equity Securities - Mutual Funds
|
|
|
18
|
|
|
7
|
|
|
-
|
|
|
25
|
|
||
Total Other Temporary Investments
|
|
$
|
409
|
|
$
|
7
|
|
$
|
-
|
|
$
|
416
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Primarily represents amounts held for the repayment of debt.
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
||
|
(in millions)
|
||||
Proceeds From Investment Sales
|
$
|
196
|
|
$
|
241
|
Purchases of Investments
|
|
148
|
|
|
197
|
Gross Realized Gains on Investment Sales
|
|
-
|
|
|
-
|
Gross Realized Losses on Investment Sales
|
|
-
|
|
|
-
|
·
|
Acceptable investments (rated investment grade or above when purchased).
|
·
|
Maximum percentage invested in a specific type of investment.
|
·
|
Prohibition of investment in obligations of AEP or its affiliates.
|
·
|
Withdrawals permitted only for payment of decommissioning costs and trust expenses.
|
|
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||||||||
|
|
|
Estimated
|
|
Gross
|
|
Other-Than-
|
|
Estimated
|
|
Gross
|
|
Other-Than-
|
||||||
|
|
Fair
|
Unrealized
|
Temporary
|
Fair
|
Unrealized
|
Temporary
|
||||||||||||
|
|
Value
|
Gains
|
Impairments
|
Value
|
Gains
|
Impairments
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||
Cash and Cash Equivalents
|
|
$
|
15
|
|
$
|
-
|
|
$
|
-
|
|
$
|
20
|
|
$
|
-
|
|
$
|
-
|
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Government
|
|
|
473
|
|
|
18
|
|
|
(1)
|
|
|
461
|
|
|
23
|
|
|
(1)
|
|
Corporate Debt
|
|
|
55
|
|
|
3
|
|
|
(2)
|
|
|
59
|
|
|
4
|
|
|
(2)
|
|
State and Local Government
|
|
|
340
|
|
|
2
|
|
|
-
|
|
|
341
|
|
|
(1)
|
|
|
-
|
|
Subtotal Fixed Income Securities
|
|
868
|
|
|
23
|
|
|
(3)
|
|
|
861
|
|
|
26
|
|
|
(3)
|
|
Equity Securities - Domestic
|
|
|
676
|
|
|
226
|
|
|
(113)
|
|
|
634
|
|
|
183
|
|
|
(123)
|
|
Spent Nuclear Fuel and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decommissioning Trusts
|
|
$
|
1,559
|
|
$
|
249
|
|
$
|
(116)
|
|
$
|
1,515
|
|
$
|
209
|
|
$
|
(126)
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
||
|
(in millions)
|
||||
Proceeds From Investment Sales
|
$
|
288
|
|
$
|
232
|
Purchases of Investments
|
|
306
|
|
|
248
|
Gross Realized Gains on Investment Sales
|
|
5
|
|
|
5
|
Gross Realized Losses on Investment Sales
|
|
5
|
|
|
-
|
|
Fair Value
|
|||
|
of Debt
|
|||
|
Securities
|
|||
|
(in millions)
|
|||
Within 1 year
|
$ | 78 | ||
1 year – 5 years
|
271 | |||
5 years – 10 years
|
268 | |||
After 10 years
|
251 | |||
Total
|
$ | 868 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
|||||
Assets:
|
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents (a)
|
$
|
417
|
|
$
|
-
|
|
$
|
-
|
|
$
|
208
|
|
$
|
625
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Restricted Cash (a)
|
|
103
|
|
|
-
|
|
|
-
|
|
|
48
|
|
|
151
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
70
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
70
|
|
|
Variable Rate Demand Notes
|
|
-
|
|
|
49
|
|
|
-
|
|
|
-
|
|
|
49
|
|
Equity Securities - Mutual Funds (b)
|
|
26
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
26
|
||
Total Other Temporary Investments
|
|
199
|
|
|
49
|
|
|
-
|
|
|
48
|
|
|
296
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (f)
|
|
16
|
|
|
1,227
|
|
|
95
|
|
|
(846)
|
|
|
492
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
9
|
|
|
23
|
|
|
-
|
|
|
(18)
|
|
|
14
|
|
Fair Value Hedges
|
|
-
|
|
|
5
|
|
|
-
|
|
|
-
|
|
|
5
|
||
Dedesignated Risk Management Contracts (d)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
41
|
|
|
41
|
||
Total Risk Management Assets
|
|
25
|
|
|
1,255
|
|
|
95
|
|
|
(823)
|
|
|
552
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and Cash Equivalents (e)
|
|
-
|
|
|
5
|
|
|
-
|
|
|
10
|
|
|
15
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
United States Government
|
|
-
|
|
|
473
|
|
|
-
|
|
|
-
|
|
|
473
|
|
|
Corporate Debt
|
|
-
|
|
|
55
|
|
|
-
|
|
|
-
|
|
|
55
|
|
|
State and Local Government
|
|
-
|
|
|
340
|
|
|
-
|
|
|
-
|
|
|
340
|
|
|
|
Subtotal Fixed Income Securities
|
|
-
|
|
|
868
|
|
|
-
|
|
|
-
|
|
|
868
|
Equity Securities - Domestic (b)
|
|
676
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
676
|
||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
676
|
|
|
873
|
|
|
-
|
|
|
10
|
|
|
1,559
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
|
1,317
|
|
$
|
2,177
|
|
$
|
95
|
|
$
|
(557)
|
|
$
|
3,032
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (f)
|
$
|
18
|
|
$
|
1,110
|
|
$
|
22
|
|
$
|
(909)
|
|
$
|
241
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
4
|
|
|
16
|
|
|
-
|
|
|
(18)
|
|
|
2
|
|
|
Interest Rate/Foreign Currency Hedges
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
3
|
|
Fair Value Hedges
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
1
|
||
Total Risk Management Liabilities
|
$
|
22
|
|
$
|
1,130
|
|
$
|
22
|
|
$
|
(927)
|
|
$
|
247
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
|||||
Assets:
|
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents (a)
|
$
|
170
|
|
$
|
-
|
|
$
|
-
|
|
$
|
124
|
|
$
|
294
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Restricted Cash (a)
|
|
184
|
|
|
-
|
|
|
-
|
|
|
41
|
|
|
225
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
69
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
69
|
|
|
Variable Rate Demand Notes
|
|
-
|
|
|
97
|
|
|
-
|
|
|
-
|
|
|
97
|
|
Equity Securities - Mutual Funds (b)
|
|
25
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25
|
||
Total Other Temporary Investments
|
|
278
|
|
|
97
|
|
|
-
|
|
|
41
|
|
|
416
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (g)
|
|
20
|
|
|
1,432
|
|
|
112
|
|
|
(1,013)
|
|
|
551
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
11
|
|
|
17
|
|
|
-
|
|
|
(15)
|
|
|
13
|
|
|
Interest Rate/Foreign Currency Hedges
|
|
-
|
|
|
25
|
|
|
-
|
|
|
-
|
|
|
25
|
|
Fair Value Hedges
|
|
-
|
|
|
7
|
|
|
-
|
|
|
-
|
|
|
7
|
||
Dedesignated Risk Management Contracts (d)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
46
|
|
|
46
|
||
Total Risk Management Assets
|
|
31
|
|
|
1,481
|
|
|
112
|
|
|
(982)
|
|
|
642
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and Cash Equivalents (e)
|
|
-
|
|
|
8
|
|
|
-
|
|
|
12
|
|
|
20
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
United States Government
|
|
-
|
|
|
461
|
|
|
-
|
|
|
-
|
|
|
461
|
|
|
Corporate Debt
|
|
-
|
|
|
59
|
|
|
-
|
|
|
-
|
|
|
59
|
|
|
State and Local Government
|
|
-
|
|
|
341
|
|
|
-
|
|
|
-
|
|
|
341
|
|
|
|
Subtotal Fixed Income Securities
|
|
-
|
|
|
861
|
|
|
-
|
|
|
-
|
|
|
861
|
Equity Securities - Domestic (b)
|
|
634
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
634
|
||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
634
|
|
|
869
|
|
|
-
|
|
|
12
|
|
|
1,515
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
|
1,113
|
|
$
|
2,447
|
|
$
|
112
|
|
$
|
(805)
|
|
$
|
2,867
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (g)
|
$
|
25
|
|
$
|
1,325
|
|
$
|
27
|
|
$
|
(1,114)
|
|
$
|
263
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
4
|
|
|
13
|
|
|
-
|
|
|
(15)
|
|
|
2
|
|
|
Interest Rate/Foreign Currency Hedges
|
|
-
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
4
|
|
Fair Value Hedges
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
1
|
||
Total Risk Management Liabilities
|
$
|
29
|
|
$
|
1,343
|
|
$
|
27
|
|
$
|
(1,129)
|
|
$
|
270
|
(a)
|
Amounts in ''Other'' column primarily represent cash deposits in bank accounts with financial institutions or with third parties. Level 1 amounts primarily represent investments in money market funds.
|
(b)
|
Amounts represent publicly traded equity securities and equity-based mutual funds.
|
(c)
|
Amounts in ''Other'' column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for ''Derivatives and Hedging.''
|
(d)
|
Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for ''Derivatives and Hedging.'' At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.
|
(e)
|
Amounts in ''Other'' column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.
|
(f)
|
The March 31, 2011 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures ($1) million in 2011, $2 million in periods 2012-2014 and ($3) million in periods 2015-2018; Level 2 matures $12 million in 2011, $70 million in periods 2012-2014, $17 million in periods 2015-2016 and $18 million in periods 2017-2028; Level 3 matures $8 million in 2011, $29 million in periods 2012-2014, $11 million in periods 2015-2016 and $25 million in periods 2017-2028. Risk management commodity contracts are substantially comprised of power contracts.
|
(g)
|
The December 31, 2010 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures ($2) million in 2011, $2 million in periods 2012-2014 and ($5) million in periods 2015-2018; Level 2 matures $13 million in 2011, $66 million in periods 2012-2014, $12 million in periods 2015-2016 and $16 million in periods 2017-2028; Level 3 matures $18 million in 2011, $24 million in periods 2012-2014, $16 million in periods 2015-2016 and $27 million in periods 2017-2028. Risk management commodity contracts are substantially comprised of power contracts.
|
|
Net Risk
|
|||
|
Management
|
|||
|
Assets
|
|||
Three Months Ended March 31, 2011
|
(Liabilities)
|
|||
|
(in millions)
|
|||
Balance as of December 31, 2010
|
$ | 85 | ||
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
(2 | ) | ||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
||||
Relating to Assets Still Held at the Reporting Date (a)
|
(4 | ) | ||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
- | |||
Purchases, Issuances and Settlements (c)
|
(8 | ) | ||
Transfers into Level 3 (d) (f)
|
- | |||
Transfers out of Level 3 (e) (f)
|
(8 | ) | ||
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
10 | |||
Balance as of March 31, 2011
|
$ | 73 |
|
Net Risk
|
|||
|
Management
|
|||
|
Assets
|
|||
Three Months Ended March 31, 2010
|
(Liabilities)
|
|||
|
(in millions)
|
|||
Balance as of December 31, 2009
|
$ | 62 | ||
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
27 | |||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
||||
Relating to Assets Still Held at the Reporting Date (a)
|
24 | |||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
- | |||
Purchases, Issuances and Settlements (c)
|
(31 | ) | ||
Transfers into Level 3 (d) (f)
|
15 | |||
Transfers out of Level 3 (e) (f)
|
1 | |||
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
18 | |||
Balance as of March 31, 2010
|
$ | 116 |
(b)
|
Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
|
(c)
|
Represents the settlement of risk management commodity contracts for the reporting period.
|
(d)
|
Represents existing assets or liabilities that were previously categorized as Level 2.
|
(e)
|
Represents existing assets or liabilities that were previously categorized as Level 3.
|
(f)
|
Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
|
(g)
|
Relates to the net gains (losses) of those contracts that are not reflected on our Condensed Consolidated Statements of Income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
Long-term Debt
|
|
|
||||||
|
|
|
||||||
Type of Debt
|
March 31, 2011
|
December 31, 2010
|
||||||
|
(in millions)
|
|||||||
Senior Unsecured Notes
|
$ | 12,069 | $ | 11,669 | ||||
Pollution Control Bonds
|
2,213 | 2,263 | ||||||
Notes Payable
|
387 | 396 | ||||||
Securitization Bonds
|
1,755 | 1,847 | ||||||
Junior Subordinated Debentures
|
315 | 315 | ||||||
Spent Nuclear Fuel Obligation (a)
|
265 | 265 | ||||||
Other Long-term Debt
|
91 | 91 | ||||||
Unamortized Discount (net)
|
(43 | ) | (35 | ) | ||||
Total Long-term Debt Outstanding
|
17,052 | 16,811 | ||||||
Less Portion Due Within One Year
|
1,421 | 1,309 | ||||||
Long-term Portion
|
$ | 15,631 | $ | 15,502 |
|
(a)
|
Pursuant to the Nuclear Waste Policy Act of 1982, I&M (a nuclear licensee) has an obligation to the United States Department of Energy for spent nuclear fuel disposal. The obligation includes a one-time fee for nuclear fuel consumed prior to April 7, 1983. Trust fund assets related to this obligation of $307 million at March 31, 2011 and December 31, 2010, are included in Spent Nuclear Fuel and Decommissioning Trusts on our Condensed Consolidated Balance Sheets.
|
|
|
|
|
|
Principal
|
|
|
Interest
|
|
|
|
Company
|
|
Type of Debt
|
|
Amount
|
|
|
Rate
|
|
Due Date
|
||
Issuances:
|
|
|
(in millions)
|
|
(%)
|
|
|
||||
APCo
|
|
Senior Unsecured Notes
|
|
$
|
350
|
|
|
4.60
|
|
2021
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
65
|
|
|
2.00
|
|
2012
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
75
|
(a)
|
|
Variable
|
|
2036
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
54
|
(a)
|
|
Variable
|
|
2042
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
50
|
(a)
|
|
Variable
|
|
2036
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
50
|
(a)
|
|
Variable
|
|
2042
|
|
I&M
|
|
Pollution Control Bonds
|
|
|
52
|
(a)
|
|
Variable
|
|
2021
|
|
I&M
|
|
Pollution Control Bonds
|
|
|
25
|
(a)
|
|
Variable
|
|
2019
|
|
OPCo
|
|
Pollution Control Bonds
|
|
|
50
|
(a)
|
|
Variable
|
|
2014
|
|
PSO
|
|
Senior Unsecured Notes
|
|
|
250
|
|
|
4.40
|
|
2021
|
|
Total Issuances
|
|
|
|
$
|
1,021
|
(b)
|
|
|
|
|
(a)
|
(b)
|
|
|
|
|
|
Principal
|
|
|
Interest
|
|
|
|
Company
|
|
Type of Debt
|
|
Amount Paid
|
|
|
Rate
|
|
Due Date
|
||
Retirements and
|
|
|
(in millions)
|
|
(%)
|
|
|
||||
|
Principal Payments:
|
|
|
|
|
|
|
|
|
|
|
APCo
|
|
Pollution Control Bonds
|
|
$
|
75
|
|
|
Variable
|
|
2036
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
54
|
|
|
Variable
|
|
2042
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
50
|
|
|
Variable
|
|
2042
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
50
|
|
|
Variable
|
|
2036
|
|
I&M
|
|
Pollution Control Bonds
|
|
|
52
|
|
|
Variable
|
|
2021
|
|
I&M
|
|
Pollution Control Bonds
|
|
|
25
|
|
|
Variable
|
|
2019
|
|
I&M
|
|
Notes Payable
|
|
|
5
|
|
|
Variable
|
|
2015
|
|
OPCo
|
|
Pollution Control Bonds
|
|
|
65
|
|
|
Variable
|
|
2036
|
|
OPCo
|
|
Pollution Control Bonds
|
|
|
50
|
|
|
Variable
|
|
2014
|
|
OPCo
|
|
Pollution Control Bonds
|
|
|
50
|
|
|
Variable
|
|
2014
|
|
PSO
|
|
Senior Unsecured Notes
|
|
|
200
|
|
|
6.00
|
|
2032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Registrant:
|
|
|
|
|
|
|
|
|
|
|
|
AEP Subsidiaries
|
|
Notes Payable
|
|
|
5
|
|
|
Variable
|
|
2017
|
|
AEGCo
|
|
Senior Unsecured Notes
|
|
|
4
|
|
|
6.33
|
|
2037
|
|
TCC
|
|
Securitization Bonds
|
|
|
34
|
|
|
5.96
|
|
2013
|
|
TCC
|
|
Securitization Bonds
|
|
|
58
|
|
|
4.98
|
|
2013
|
|
Total Retirements and
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Payments
|
|
|
|
$
|
777
|
|
|
|
|
|
Short-term Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our outstanding short-term debt was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
|
|
Outstanding
|
|
Interest
|
|
Outstanding
|
|
Interest
|
||||
Type of Debt
|
Amount
|
Rate (a)
|
|
Amount
|
Rate (a)
|
||||||||
|
|
(in millions)
|
|
|
|
|
(in millions)
|
|
|
|
|||
Securitized Debt for Receivables (b)
|
|
$
|
620
|
|
0.30
|
%
|
|
$
|
690
|
|
0.31
|
%
|
|
Commercial Paper
|
|
|
813
|
|
0.48
|
%
|
|
|
650
|
|
0.52
|
%
|
|
Line of Credit – Sabine Mining Company (c)
|
|
|
-
|
|
-
|
%
|
|
|
6
|
|
2.15
|
%
|
|
Total Short-term Debt
|
|
$
|
1,433
|
|
|
|
|
$
|
1,346
|
|
|
|
(b)
|
Amount of securitized debt for receivables as accounted for under the ''Transfers and Servicing'' accounting guidance.
|
(c)
|
Sabine Mining Company is a consolidated variable interest entity. This line of credit does not reduce available liquidity under AEP's credit facilities.
|
|
|
|
Three Months Ended
|
|
||||
|
|
|
March 31,
|
|
||||
|
|
|
2011
|
|
2010
|
|
||
|
|
(dollars in millions)
|
|
|||||
Effective Interest Rate on Securitization of Accounts Receivable
|
|
|
0.31
|
%
|
|
0.23
|
%
|
|
Net Uncollectible Accounts Receivable Written Off
|
|
$
|
11
|
|
$
|
4
|
|
|
|
|
March 31,
|
|
December 31,
|
||
|
|
|
2011
|
|
2010
|
||
|
|
|
(in millions)
|
||||
Accounts Receivable Retained Interest and Pledged as Collateral
|
|
|
|
|
|
|
|
|
Less Uncollectible Accounts
|
|
$
|
893
|
|
$
|
923
|
Total Principal Outstanding
|
|
|
620
|
|
|
690
|
|
Delinquent Securitized Accounts Receivable
|
|
|
42
|
|
|
50
|
|
Bad Debt Reserves Related to Securitization/Sale of Accounts Receivable
|
|
|
21
|
|
|
26
|
|
Unbilled Receivables Related to Securitization/Sale of Accounts Receivable
|
|
|
297
|
|
|
354
|
|
|
Total
|
|
|
|
(in millions)
|
|
Balance as of December 31, 2010
|
|
$
|
17
|
Incurred
|
|
|
-
|
Settled
|
|
|
(5)
|
Adjustments
|
|
|
(1)
|
Balance as of March 31, 2011
|
|
$
|
11
|
RESULTS OF OPERATIONS
|
|
|
||||||
|
|
|
||||||
KWH Sales/Degree Days
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
3,959
|
|
|
4,528
|
|
Commercial
|
|
1,698
|
|
|
1,787
|
|
Industrial
|
|
2,619
|
|
|
2,463
|
|
Miscellaneous
|
|
210
|
|
|
222
|
Total Retail
|
|
8,486
|
|
|
9,000
|
|
|
|
|
|
|
|
|
Wholesale
|
|
1,827
|
|
|
1,703
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
10,313
|
|
|
10,703
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,330
|
|
|
1,577
|
|
Normal - Heating (b)
|
|
1,337
|
|
|
1,399
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
6
|
|
|
-
|
|
Normal - Cooling (b)
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
|||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
||||
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 70 | ||
|
||||
Changes in Gross Margin:
|
||||
Retail Margins
|
(60 | ) | ||
Off-system Sales
|
1 | |||
Transmission Revenue
|
2 | |||
Total Change in Gross Margin
|
(57 | ) | ||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
8 | |||
Depreciation and Amortization
|
8 | |||
Taxes Other Than Income Taxes
|
(1 | ) | ||
Carrying Costs Income
|
(2 | ) | ||
Interest Expense
|
(1 | ) | ||
Total Expenses and Other
|
12 | |||
|
||||
Income Tax Expense
|
14 | |||
|
||||
First Quarter of 2011
|
$ | 39 |
·
|
Retail Margins decreased $60 million primarily due to the following:
|
|
·
|
A $46 million decrease primarily due to a 13% decrease in residential usage, a 5% decrease in commercial usage and lower retail rates.
|
|
·
|
A $23 million decrease in rate relief primarily due to the expiration of E&R cost recovery in Virginia and the implementation of higher interim rates in Virginia in January and February 2010. This decrease in retail margins had corresponding decreases of $17 million related to riders/trackers recognized in other expense items discussed below.
|
|
These decreases were partially offset by:
|
||
·
|
A $21 million increase due to lower capacity settlement expenses under the Interconnection Agreement net of recovery in West Virginia and environmental deferrals in Virginia.
|
·
|
Other Operation and Maintenance expenses decreased $8 million primarily due to the following: | |
·
|
A $32 million decrease due to the deferral of storm costs and costs related to 2010 cost reduction initiatives. These costs were deferred as a result of the approved modified settlement agreement of APCo’s West Virginia base rate case in March 2011.
|
|
·
|
A $6 million decrease in employee-related expenses.
|
|
·
|
A $6 million decrease primarily due to lower overhead line maintenance expenses.
|
|
·
|
A $5 million decrease in maintenance expenses in 2011 resulting primarily from a 2010 planned outage at the Amos Plant.
|
|
These decreases were partially offset by: | ||
·
|
A $41 million increase due to the write-off of a portion of the Mountaineer Carbon Capture and Storage Project Product Validation Facility as denied for recovery by the WVPSC in March 2011.
|
|
·
|
Depreciation and Amortization expenses decreased $8 million primarily due to the expiration of E&R amortization of deferred carrying costs in Virginia, partially offset by an increased depreciation base resulting from environmental upgrades at the Amos Plant.
|
|
·
|
Income Tax Expense decreased $14 million primarily due to a decrease in pretax book income.
|
|
|
|
2011
|
|
2010
|
||
|
|
|
(in thousands)
|
||||
Cash and Cash Equivalents at Beginning of Period
|
|
$
|
951
|
|
$
|
2,006
|
|
Net Cash Flows from Operating Activities
|
|
|
250,841
|
|
|
178,522
|
|
Net Cash Flows Used for Investing Activities
|
|
|
(492,622)
|
|
|
(167,978)
|
|
Net Cash Flows from (Used for) Financing Activities
|
|
|
243,214
|
|
|
(10,308)
|
|
Net Increase in Cash and Cash Equivalents
|
|
|
1,433
|
|
|
236
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
2,384
|
|
$
|
2,242
|
Issuances
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
Interest
|
|
Due
|
|
|
Type of Debt
|
|
Amount
|
|
Rate
|
|
Date
|
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
|
Senior Unsecured Notes
|
|
$
|
350,000
|
|
4.60
|
|
2021
|
|
Pollution Control Bonds
|
|
|
65,350
|
|
2.00
|
|
2012
|
|
Pollution Control Bonds
|
|
|
75,000
|
(a)
|
Variable
|
|
2036
|
|
Pollution Control Bonds
|
|
|
50,275
|
(a)
|
Variable
|
|
2036
|
|
Pollution Control Bonds
|
|
|
54,375
|
(a)
|
Variable
|
|
2042
|
|
Pollution Control Bonds
|
|
|
50,000
|
(a)
|
Variable
|
|
2042
|
(a) |
These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year - Nonaffiliated on APCo’s Condensed Consolidated Balance Sheets.
|
Retirements and Principal Payments
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
Interest
|
|
Due
|
|
|
Type of Debt
|
|
Amount Paid
|
|
Rate
|
|
Date
|
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
|
Pollution Control Bonds
|
|
$
|
75,000
|
|
Variable
|
|
2036
|
|
Pollution Control Bonds
|
|
|
50,275
|
|
Variable
|
|
2036
|
|
Pollution Control Bonds
|
|
|
54,375
|
|
Variable
|
|
2042
|
|
Pollution Control Bonds
|
|
|
50,000
|
|
Variable
|
|
2042
|
|
Land Note
|
|
|
5
|
|
13.718
|
|
2026
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Electric Generation, Transmission and Distribution
|
$ | 751,012 | $ | 845,990 | ||||
Sales to AEP Affiliates
|
78,691 | 78,771 | ||||||
Other Revenues
|
2,117 | 1,862 | ||||||
TOTAL REVENUES
|
831,820 | 926,623 | ||||||
|
||||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
180,581 | 180,640 | ||||||
Purchased Electricity for Resale
|
69,218 | 63,683 | ||||||
Purchased Electricity from AEP Affiliates
|
224,189 | 267,502 | ||||||
Other Operation
|
113,276 | 90,040 | ||||||
Maintenance
|
32,293 | 63,110 | ||||||
Depreciation and Amortization
|
69,099 | 77,430 | ||||||
Taxes Other Than Income Taxes
|
27,103 | 26,280 | ||||||
TOTAL EXPENSES
|
715,759 | 768,685 | ||||||
|
||||||||
OPERATING INCOME
|
116,061 | 157,938 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest Income
|
320 | 291 | ||||||
Carrying Costs Income
|
3,439 | 5,764 | ||||||
Allowance for Equity Funds Used During Construction
|
883 | 1,163 | ||||||
Interest Expense
|
(52,939 | ) | (51,727 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
67,764 | 113,429 | ||||||
|
||||||||
Income Tax Expense
|
28,784 | 43,147 | ||||||
|
||||||||
NET INCOME
|
38,980 | 70,282 | ||||||
|
||||||||
Preferred Stock Dividend Requirements Including Capital Stock Expense
|
200 | 225 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
$ | 38,780 | $ | 70,057 | ||||
|
||||||||
The common stock of APCo is wholly-owned by AEP.
|
||||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
Accumulated
|
|
|||||||||||||||
|
|
|
|
Other
|
|
|||||||||||||||
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|
|||||||||||||||
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|||||||||||||||
EQUITY – DECEMBER 31, 2009
|
$ | 260,458 | $ | 1,475,393 | $ | 1,085,980 | $ | (50,254 | ) | $ | 2,771,577 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(44,000 | ) | (44,000 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(200 | ) | (200 | ) | ||||||||||||||||
Capital Stock Expense
|
27 | (25 | ) | 2 | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
2,727,379 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income (Loss), Net of
|
||||||||||||||||||||
Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $940
|
(1,746 | ) | (1,746 | ) | ||||||||||||||||
Amortization of Pension and OPEB Deferred
|
||||||||||||||||||||
Costs, Net of Tax of $562
|
1,043 | 1,043 | ||||||||||||||||||
NET INCOME
|
70,282 | 70,282 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
69,579 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2010
|
$ | 260,458 | $ | 1,475,420 | $ | 1,112,037 | $ | (50,957 | ) | $ | 2,796,958 | |||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – DECEMBER 31, 2010
|
$ | 260,458 | $ | 1,475,496 | $ | 1,133,748 | $ | (48,023 | ) | $ | 2,821,679 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(37,500 | ) | (37,500 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(200 | ) | (200 | ) | ||||||||||||||||
Capital Stock Expense
|
3 | 3 | ||||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
2,783,982 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income, Net of
|
||||||||||||||||||||
Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $275
|
511 | 511 | ||||||||||||||||||
Amortization of Pension and OPEB Deferred
|
||||||||||||||||||||
Costs, Net of Tax of $418
|
777 | 777 | ||||||||||||||||||
NET INCOME
|
38,980 | 38,980 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
40,268 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2011
|
$ | 260,458 | $ | 1,475,499 | $ | 1,135,028 | $ | (46,735 | ) | $ | 2,824,250 | |||||||||
|
||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 2,384 | $ | 951 | ||||
Advances to Affiliates
|
383,537 | - | ||||||
Accounts Receivable:
|
||||||||
Customers
|
153,002 | 166,878 | ||||||
Affiliated Companies
|
101,346 | 145,972 | ||||||
Accrued Unbilled Revenues
|
58,693 | 108,210 | ||||||
Miscellaneous
|
1,348 | 3,090 | ||||||
Allowance for Uncollectible Accounts
|
(7,045 | ) | (6,667 | ) | ||||
Total Accounts Receivable
|
307,344 | 417,483 | ||||||
Fuel
|
167,153 | 230,697 | ||||||
Materials and Supplies
|
91,068 | 89,370 | ||||||
Risk Management Assets
|
38,923 | 53,242 | ||||||
Accrued Tax Benefits
|
109,294 | 104,435 | ||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
18,131 | 18,300 | ||||||
Prepayments and Other Current Assets
|
29,707 | 35,811 | ||||||
TOTAL CURRENT ASSETS
|
1,147,541 | 950,289 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
5,096,419 | 4,736,150 | ||||||
Transmission
|
1,874,320 | 1,852,415 | ||||||
Distribution
|
2,760,683 | 2,740,752 | ||||||
Other Property, Plant and Equipment
|
348,613 | 348,013 | ||||||
Construction Work in Progress
|
209,978 | 562,280 | ||||||
Total Property, Plant and Equipment
|
10,290,013 | 10,239,610 | ||||||
Accumulated Depreciation and Amortization
|
2,882,681 | 2,843,087 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
7,407,332 | 7,396,523 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
1,485,103 | 1,486,625 | ||||||
Long-term Risk Management Assets
|
40,266 | 38,420 | ||||||
Deferred Charges and Other Noncurrent Assets
|
128,641 | 125,296 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
1,654,010 | 1,650,341 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 10,208,883 | $ | 9,997,153 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
|
|
|
||||||
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
CURRENT LIABILITIES
|
|
|
||||||
Advances from Affiliates
|
$ | - | $ | 128,331 | ||||
Accounts Payable:
|
||||||||
General
|
155,890 | 223,144 | ||||||
Affiliated Companies
|
133,716 | 166,884 | ||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
479,673 | 479,672 | ||||||
Risk Management Liabilities
|
22,746 | 27,993 | ||||||
Customer Deposits
|
59,385 | 58,451 | ||||||
Deferred Income Taxes
|
40,752 | 44,180 | ||||||
Accrued Taxes
|
76,268 | 75,619 | ||||||
Accrued Interest
|
71,566 | 57,871 | ||||||
Other Current Liabilities
|
81,662 | 93,286 | ||||||
TOTAL CURRENT LIABILITIES
|
1,121,658 | 1,355,431 | ||||||
|
||||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term Debt – Nonaffiliated
|
3,496,032 | 3,081,469 | ||||||
Long-term Risk Management Liabilities
|
13,339 | 10,873 | ||||||
Deferred Income Taxes
|
1,679,963 | 1,642,072 | ||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
554,577 | 562,381 | ||||||
Employee Benefits and Pension Obligations
|
302,517 | 306,460 | ||||||
Deferred Credits and Other Noncurrent Liabilities
|
198,811 | 199,041 | ||||||
TOTAL NONCURRENT LIABILITIES
|
6,245,239 | 5,802,296 | ||||||
|
||||||||
TOTAL LIABILITIES
|
7,366,897 | 7,157,727 | ||||||
|
||||||||
Cumulative Preferred Stock Not Subject to Mandatory Redemption
|
17,736 | 17,747 | ||||||
|
||||||||
Rate Matters (Note 2)
|
||||||||
Commitments and Contingencies (Note 3)
|
||||||||
|
||||||||
COMMON SHAREHOLDER’S EQUITY
|
||||||||
Common Stock – No Par Value:
|
||||||||
Authorized – 30,000,000 Shares
|
||||||||
Outstanding – 13,499,500 Shares
|
260,458 | 260,458 | ||||||
Paid-in Capital
|
1,475,499 | 1,475,496 | ||||||
Retained Earnings
|
1,135,028 | 1,133,748 | ||||||
Accumulated Other Comprehensive Income (Loss)
|
(46,735 | ) | (48,023 | ) | ||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
2,824,250 | 2,821,679 | ||||||
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 10,208,883 | $ | 9,997,153 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 38,980 | $ | 70,282 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from
|
||||||||
Operating Activities:
|
||||||||
Depreciation and Amortization
|
69,099 | 77,430 | ||||||
Deferred Income Taxes
|
60,802 | 19,121 | ||||||
Carrying Costs Income
|
(3,439 | ) | (5,764 | ) | ||||
Allowance for Equity Funds Used During Construction
|
(883 | ) | (1,163 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
(1,553 | ) | (12,977 | ) | ||||
Fuel Over/Under-Recovery, Net
|
(9,857 | ) | (11,804 | ) | ||||
Change in Other Noncurrent Assets
|
10,237 | 11,082 | ||||||
Change in Other Noncurrent Liabilities
|
12,013 | (2,568 | ) | |||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
109,662 | 80,813 | ||||||
Fuel, Materials and Supplies
|
61,846 | 41,054 | ||||||
Accounts Payable
|
(71,056 | ) | (97,732 | ) | ||||
Accrued Taxes, Net
|
(32,472 | ) | 24,150 | |||||
Other Current Assets
|
6,505 | (4,250 | ) | |||||
Other Current Liabilities
|
957 | (9,152 | ) | |||||
Net Cash Flows from Operating Activities
|
250,841 | 178,522 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(113,132 | ) | (167,412 | ) | ||||
Change in Advances to Affiliates, Net
|
(383,537 | ) | - | |||||
Other Investing Activities
|
4,047 | (566 | ) | |||||
Net Cash Flows Used for Investing Activities
|
(492,622 | ) | (167,978 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt – Nonaffiliated
|
640,770 | 17,376 | ||||||
Change in Advances from Affiliates, Net
|
(128,331 | ) | 117,879 | |||||
Retirement of Long-term Debt – Nonaffiliated
|
(229,655 | ) | (5 | ) | ||||
Retirement of Long-term Debt – Affiliated
|
- | (100,000 | ) | |||||
Retirement of Cumulative Preferred Stock
|
(8 | ) | (4 | ) | ||||
Principal Payments for Capital Lease Obligations
|
(1,876 | ) | (1,790 | ) | ||||
Dividends Paid on Common Stock
|
(37,500 | ) | (44,000 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
(200 | ) | (200 | ) | ||||
Other Financing Activities
|
14 | 436 | ||||||
Net Cash Flows from (Used for) Financing Activities
|
243,214 | (10,308 | ) | |||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
1,433 | 236 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
951 | 2,006 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 2,384 | $ | 2,242 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 36,992 | $ | 38,971 | ||||
Net Cash Paid for Income Taxes
|
629 | - | ||||||
Noncash Acquisitions Under Capital Leases
|
368 | 20,369 | ||||||
Government Grants Included in Accounts Receivable at March 31,
|
572 | - | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
38,071 | 43,262 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 5
|
Business Segments
|
Note 6
|
Derivatives and Hedging
|
Note 7
|
Fair Value Measurements
|
Note 8
|
Income Taxes
|
Note 9
|
Financing Activities
|
Note 10
|
Cost Reduction Initiatives
|
Note 11
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
2,127
|
|
|
2,226
|
|
Commercial
|
|
1,995
|
|
|
2,002
|
|
Industrial
|
|
1,270
|
|
|
1,111
|
|
Miscellaneous
|
|
14
|
|
|
13
|
Total Retail
|
|
5,406
|
|
|
5,352
|
|
|
|
|
|
|
|
|
Wholesale
|
|
863
|
|
|
719
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
6,269
|
|
|
6,071
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,928
|
|
|
1,965
|
|
Normal - Heating (b)
|
|
1,784
|
|
|
1,784
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
1
|
|
|
-
|
|
Normal - Cooling (b)
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
|
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
|||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 52 | ||
|
||||
Changes in Gross Margin:
|
||||
Retail Margins
|
10 | |||
Off-system Sales
|
12 | |||
Total Change in Gross Margin
|
22 | |||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
1 | |||
Depreciation and Amortization
|
(4 | ) | ||
Taxes Other Than Income Taxes
|
(3 | ) | ||
Interest Expense
|
2 | |||
Other Income
|
1 | |||
Total Expenses and Other
|
(3 | ) | ||
|
||||
Income Tax Expense
|
(6 | ) | ||
|
||||
First Quarter of 2011
|
$ | 65 |
·
|
Retail Margins increased $10 million due to the following:
|
|
·
|
A $12 million increase in revenue due to the implementation of PUCO approved rider rates in June 2010 related to the Energy Efficiency & Peak Demand Reduction (EE/PDR) Programs. This increase in Retail Margins was offset by a corresponding increase in Other Operation and Maintenance as discussed below.
|
|
·
|
A $10 million increase associated with the final 2009 SEET order.
|
|
·
|
A $4 million increase in revenues due to the implementation of PUCO approved rider rates in September 2010 related to the Environmental Investment Carrying Cost Rider.
|
|
These increases were partially offset by:
|
||
·
|
An $18 million decrease attributable to customers switching to alternative competitive retail electric service (CRES) providers.
|
|
·
|
Margins from Off-system Sales increased $12 million primarily due to an increase in PJM capacity revenues, partially offset by lower trading and marketing margins.
|
·
|
Other Operation and Maintenance expenses decreased $1 million primarily due to:
|
|
·
|
A $7 million decrease in transmission expense primarily due to the Transmission Agreement modification effective November 2010, a portion of which is included in the Ohio Transmission Cost Recovery Rider.
|
|
·
|
A $3 million decrease in employee-related expenses.
|
|
These decreases were partially offset by:
|
||
·
|
A $12 million increase in expenses due to the implementation of PUCO approved EE/PDR programs. This increase in Other Operation and Maintenance expense was offset by a corresponding increase in Retail Margins as discussed above.
|
·
|
Depreciation and Amortization expenses increased $4 million as a result of recognizing the deferred debt and equity carrying charges on deferred fuel as permitted under the final 2009 SEET order.
|
·
|
Taxes Other Than Income Taxes increased $3 million due to an increase in property taxes.
|
|
·
|
Income Tax Expense increased $6 million primarily due to an increase in pre-tax book income, offset in part by the 2010 tax treatment associated with the future reimbursement of Medicare Part D retiree prescription drug benefits.
|
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Electric Generation, Transmission and Distribution
|
$ | 503,371 | $ | 501,019 | ||||
Sales to AEP Affiliates
|
40,725 | 15,832 | ||||||
Other Revenues
|
506 | 588 | ||||||
TOTAL REVENUES
|
544,602 | 517,439 | ||||||
|
||||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
112,913 | 114,441 | ||||||
Purchased Electricity for Resale
|
23,517 | 19,645 | ||||||
Purchased Electricity from AEP Affiliates
|
101,611 | 98,799 | ||||||
Other Operation
|
71,067 | 77,326 | ||||||
Maintenance
|
29,100 | 24,283 | ||||||
Depreciation and Amortization
|
41,426 | 37,487 | ||||||
Taxes Other Than Income Taxes
|
50,149 | 47,057 | ||||||
TOTAL EXPENSES
|
429,783 | 419,038 | ||||||
|
||||||||
OPERATING INCOME
|
114,819 | 98,401 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest Income
|
167 | 142 | ||||||
Carrying Costs Income
|
3,654 | 2,221 | ||||||
Allowance for Equity Funds Used During Construction
|
771 | 921 | ||||||
Interest Expense
|
(19,748 | ) | (21,784 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
99,663 | 79,901 | ||||||
|
||||||||
Income Tax Expense
|
34,105 | 28,251 | ||||||
|
||||||||
NET INCOME
|
65,558 | 51,650 | ||||||
|
||||||||
Capital Stock Expense
|
25 | 39 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
$ | 65,533 | $ | 51,611 | ||||
|
||||||||
The common stock of CSPCo is wholly-owned by AEP.
|
||||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
Accumulated
|
|
|||||||||||||||
|
|
|
|
Other
|
|
|||||||||||||||
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|
|||||||||||||||
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|||||||||||||||
EQUITY – DECEMBER 31, 2009
|
$ | 41,026 | $ | 580,663 | $ | 788,139 | $ | (49,993 | ) | $ | 1,359,835 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(31,250 | ) | (31,250 | ) | ||||||||||||||||
Capital Stock Expense
|
39 | (39 | ) | - | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
1,328,585 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income (Loss), Net of
|
||||||||||||||||||||
Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $555
|
(1,031 | ) | (1,031 | ) | ||||||||||||||||
Amortization of Pension and OPEB Deferred
|
||||||||||||||||||||
Costs, Net of Tax of $333
|
619 | 619 | ||||||||||||||||||
NET INCOME
|
51,650 | 51,650 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
51,238 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2010
|
$ | 41,026 | $ | 580,702 | $ | 808,500 | $ | (50,405 | ) | $ | 1,379,823 | |||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – DECEMBER 31, 2010
|
$ | 41,026 | $ | 580,812 | $ | 915,713 | $ | (51,336 | ) | $ | 1,486,215 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(62,500 | ) | (62,500 | ) | ||||||||||||||||
Capital Stock Expense
|
25 | (25 | ) | - | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
1,423,715 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income, Net of Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $114
|
213 | 213 | ||||||||||||||||||
Amortization of Pension and OPEB Deferred
|
||||||||||||||||||||
Costs, Net of Tax of $344
|
639 | 639 | ||||||||||||||||||
NET INCOME
|
65,558 | 65,558 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
66,410 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2011
|
$ | 41,026 | $ | 580,837 | $ | 918,746 | $ | (50,484 | ) | $ | 1,490,125 | |||||||||
|
||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 1,385 | $ | 509 | ||||
Other Cash Deposits
|
2,260 | 2,260 | ||||||
Advances to Affiliates
|
63,706 | 54,202 | ||||||
Accounts Receivable:
|
||||||||
Customers
|
50,017 | 50,187 | ||||||
Affiliated Companies
|
44,261 | 66,788 | ||||||
Accrued Unbilled Revenues
|
14,205 | 32,821 | ||||||
Miscellaneous
|
4,715 | 14,374 | ||||||
Allowance for Uncollectible Accounts
|
(1,618 | ) | (1,584 | ) | ||||
Total Accounts Receivable
|
111,580 | 162,586 | ||||||
Fuel
|
64,555 | 72,882 | ||||||
Materials and Supplies
|
41,290 | 42,033 | ||||||
Emission Allowances
|
26,461 | 28,486 | ||||||
Risk Management Assets
|
22,221 | 23,774 | ||||||
Accrued Tax Benefits
|
1,453 | 8,797 | ||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
19,199 | - | ||||||
Margin Deposits
|
11,162 | 14,762 | ||||||
Prepayments and Other Current Assets
|
11,066 | 26,864 | ||||||
TOTAL CURRENT ASSETS
|
376,338 | 437,155 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
2,719,642 | 2,686,294 | ||||||
Transmission
|
676,250 | 662,312 | ||||||
Distribution
|
1,804,501 | 1,796,023 | ||||||
Other Property, Plant and Equipment
|
203,744 | 203,593 | ||||||
Construction Work in Progress
|
142,609 | 172,793 | ||||||
Total Property, Plant and Equipment
|
5,546,746 | 5,521,015 | ||||||
Accumulated Depreciation and Amortization
|
1,959,482 | 1,927,112 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
3,587,264 | 3,593,903 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
303,741 | 298,111 | ||||||
Long-term Risk Management Assets
|
23,080 | 22,089 | ||||||
Deferred Charges and Other Noncurrent Assets
|
125,746 | 152,932 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
452,567 | 473,132 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 4,416,169 | $ | 4,504,190 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
||||||||
|
||||||||
|
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
CURRENT LIABILITIES
|
|
|
||||||
Accounts Payable:
|
|
|
||||||
General
|
$ | 80,031 | $ | 98,925 | ||||
Affiliated Companies
|
55,640 | 78,617 | ||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
150,000 | - | ||||||
Risk Management Liabilities
|
13,053 | 15,967 | ||||||
Customer Deposits
|
30,222 | 29,441 | ||||||
Accrued Taxes
|
175,816 | 226,572 | ||||||
Accrued Interest
|
25,189 | 22,533 | ||||||
Other Current Liabilities
|
93,112 | 111,868 | ||||||
TOTAL CURRENT LIABILITIES
|
623,063 | 583,923 | ||||||
|
||||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term Debt – Nonaffiliated
|
1,288,900 | 1,438,830 | ||||||
Long-term Risk Management Liabilities
|
7,653 | 6,223 | ||||||
Deferred Income Taxes
|
619,951 | 604,828 | ||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
164,212 | 163,888 | ||||||
Employee Benefits and Pension Obligations
|
135,202 | 136,643 | ||||||
Deferred Credits and Other Noncurrent Liabilities
|
87,063 | 83,640 | ||||||
TOTAL NONCURRENT LIABILITIES
|
2,302,981 | 2,434,052 | ||||||
|
||||||||
TOTAL LIABILITIES
|
2,926,044 | 3,017,975 | ||||||
|
||||||||
Rate Matters (Note 2)
|
||||||||
Commitments and Contingencies (Note 3)
|
||||||||
|
||||||||
COMMON SHAREHOLDER’S EQUITY
|
||||||||
Common Stock – No Par Value:
|
||||||||
Authorized – 24,000,000 Shares
|
||||||||
Outstanding – 16,410,426 Shares
|
41,026 | 41,026 | ||||||
Paid-in Capital
|
580,837 | 580,812 | ||||||
Retained Earnings
|
918,746 | 915,713 | ||||||
Accumulated Other Comprehensive Income (Loss)
|
(50,484 | ) | (51,336 | ) | ||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
1,490,125 | 1,486,215 | ||||||
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY
|
$ | 4,416,169 | $ | 4,504,190 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 65,558 | $ | 51,650 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
||||||||
Depreciation and Amortization
|
41,426 | 37,487 | ||||||
Deferred Income Taxes
|
31,902 | 8,327 | ||||||
Allowance for Equity Funds Used During Construction
|
(771 | ) | (921 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
(669 | ) | (11,609 | ) | ||||
Property Taxes
|
27,283 | 24,131 | ||||||
Fuel Over/Under-Recovery, Net
|
(4,891 | ) | 26,139 | |||||
Change in Other Noncurrent Assets
|
(9,041 | ) | (4,994 | ) | ||||
Change in Other Noncurrent Liabilities
|
5,100 | (46 | ) | |||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
43,606 | 5,553 | ||||||
Fuel, Materials and Supplies
|
10,033 | (9,795 | ) | |||||
Accounts Payable
|
(35,549 | ) | (22,402 | ) | ||||
Accrued Taxes, Net
|
(48,059 | ) | (24,444 | ) | ||||
Other Current Assets
|
4,645 | (428 | ) | |||||
Other Current Liabilities
|
(25,526 | ) | (1,619 | ) | ||||
Net Cash Flows from Operating Activities
|
105,047 | 77,029 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(45,732 | ) | (42,906 | ) | ||||
Change in Other Cash Deposits
|
- | 10,290 | ||||||
Change in Advances to Affiliates, Net
|
(9,504 | ) | (37,818 | ) | ||||
Acquisitions of Assets
|
(201 | ) | (190 | ) | ||||
Proceeds from Sales of Assets
|
2,439 | 789 | ||||||
Other Investing Activities
|
12,179 | - | ||||||
Net Cash Flows Used for Investing Activities
|
(40,819 | ) | (69,835 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt – Nonaffiliated
|
- | 149,625 | ||||||
Change in Advances from Affiliates, Net
|
- | (24,202 | ) | |||||
Retirement of Long-term Debt – Affiliated
|
- | (100,000 | ) | |||||
Principal Payments for Capital Lease Obligations
|
(852 | ) | (1,120 | ) | ||||
Dividends Paid on Common Stock
|
(62,500 | ) | (31,250 | ) | ||||
Other Financing Activities
|
- | 71 | ||||||
Net Cash Flows Used for Financing Activities
|
(63,352 | ) | (6,876 | ) | ||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
876 | 318 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
509 | 1,096 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 1,385 | $ | 1,414 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 16,396 | $ | 18,631 | ||||
Net Cash Paid for Income Taxes
|
518 | - | ||||||
Noncash Acquisitions Under Capital Leases
|
139 | 8,353 | ||||||
Government Grants Included in Accounts Receivable at March 31,
|
1,938 | - | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
8,572 | 13,891 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 5
|
Business Segments
|
Note 6
|
Derivatives and Hedging
|
Note 7
|
Fair Value Measurements
|
Note 8
|
Income Taxes
|
Note 9
|
Financing Activities
|
Note 10
|
Cost Reduction Initiatives
|
Note 11
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
1,836
|
|
|
1,765
|
|
Commercial
|
|
1,263
|
|
|
1,208
|
|
Industrial
|
|
1,844
|
|
|
1,800
|
|
Miscellaneous
|
|
23
|
|
|
18
|
Total Retail
|
|
4,966
|
|
|
4,791
|
|
|
|
|
|
|
|
|
Wholesale
|
|
2,096
|
|
|
1,906
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
7,062
|
|
|
6,697
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
2,392
|
|
|
2,174
|
|
Normal - Heating (b)
|
|
2,175
|
|
|
2,172
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
-
|
|
|
-
|
|
Normal - Cooling (b)
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
|||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 45 | ||
|
||||
Changes in Gross Margin:
|
||||
Retail Margins
|
13 | |||
FERC Municipals and Cooperatives
|
2 | |||
Off-system Sales
|
2 | |||
Other Revenues
|
(2 | ) | ||
Total Change in Gross Margin
|
15 | |||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
(6 | ) | ||
Taxes Other Than Income Taxes
|
(1 | ) | ||
Other Income
|
(1 | ) | ||
Interest Expense
|
1 | |||
Total Expenses and Other
|
(7 | ) | ||
|
||||
Income Tax Expense
|
(8 | ) | ||
|
||||
First Quarter of 2011
|
$ | 45 |
·
|
Retail Margins increased $13 million primarily due to the following:
|
|
·
|
An $8 million increase due to Michigan rate settlement effective in December 2010.
|
|
·
|
A $7 million increase in margins from residential sales primarily due to higher usage reflecting favorable weather.
|
·
|
Other Operation and Maintenance expenses increased $6 million primarily due to the following:
|
|
·
|
A $10 million increase in transmission expense primarily due to the Transmission Agreement modification effective November 2010.
|
|
This increase was partially offset by:
|
||
·
|
A $5 million decrease in administrative and general expenses.
|
|
·
|
Income Tax Expense increased $8 million primarily due to an increase in pretax book income and federal income tax adjustments related to prior year tax returns.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Electric Generation, Transmission and Distribution
|
$ | 456,862 | $ | 438,024 | ||||
Sales to AEP Affiliates
|
74,868 | 84,217 | ||||||
Other Revenues - Affiliated
|
24,331 | 27,966 | ||||||
Other Revenues - Nonaffiliated
|
4,431 | 2,849 | ||||||
TOTAL REVENUES
|
560,492 | 553,056 | ||||||
|
||||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
115,062 | 119,181 | ||||||
Purchased Electricity for Resale
|
29,292 | 29,767 | ||||||
Purchased Electricity from AEP Affiliates
|
79,584 | 82,250 | ||||||
Other Operation
|
133,211 | 130,681 | ||||||
Maintenance
|
51,000 | 48,444 | ||||||
Depreciation and Amortization
|
34,087 | 33,831 | ||||||
Taxes Other Than Income Taxes
|
22,262 | 21,032 | ||||||
TOTAL EXPENSES
|
464,498 | 465,186 | ||||||
|
||||||||
OPERATING INCOME
|
95,994 | 87,870 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest Income
|
696 | 485 | ||||||
Allowance for Equity Funds Used During Construction
|
3,199 | 4,435 | ||||||
Interest Expense
|
(25,191 | ) | (26,101 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
74,698 | 66,689 | ||||||
|
||||||||
Income Tax Expense
|
29,271 | 21,631 | ||||||
|
||||||||
NET INCOME
|
45,427 | 45,058 | ||||||
|
||||||||
Preferred Stock Dividend Requirements
|
85 | 85 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
$ | 45,342 | $ | 44,973 | ||||
|
||||||||
The common stock of I&M is wholly-owned by AEP.
|
||||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
Accumulated
|
|
|||||||||||||||
|
|
|
|
Other
|
|
|||||||||||||||
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|
|||||||||||||||
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|||||||||||||||
EQUITY – DECEMBER 31, 2009
|
$ | 56,584 | $ | 981,292 | $ | 656,608 | $ | (21,701 | ) | $ | 1,672,783 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(25,750 | ) | (25,750 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(85 | ) | (85 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
1,646,948 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income (Loss), Net of
|
||||||||||||||||||||
Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $422
|
(784 | ) | (784 | ) | ||||||||||||||||
Amortization of Pension and OPEB Deferred
|
||||||||||||||||||||
Costs, Net of Tax of $117
|
218 | 218 | ||||||||||||||||||
NET INCOME
|
45,058 | 45,058 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
44,492 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2010
|
$ | 56,584 | $ | 981,292 | $ | 675,831 | $ | (22,267 | ) | $ | 1,691,440 | |||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – DECEMBER 31, 2010
|
$ | 56,584 | $ | 981,294 | $ | 677,360 | $ | (20,889 | ) | $ | 1,694,349 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(18,750 | ) | (18,750 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(85 | ) | (85 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
1,675,514 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income, Net of Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $286
|
531 | 531 | ||||||||||||||||||
Amortization of Pension and OPEB Deferred
|
||||||||||||||||||||
Costs, Net of Tax of $128
|
237 | 237 | ||||||||||||||||||
NET INCOME
|
45,427 | 45,427 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
46,195 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2011
|
$ | 56,584 | $ | 981,294 | $ | 703,952 | $ | (20,121 | ) | $ | 1,721,709 | |||||||||
|
||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 912 | $ | 361 | ||||
Advances to Affiliates
|
56,813 | - | ||||||
Accounts Receivable:
|
||||||||
Customers
|
56,396 | 76,193 | ||||||
Affiliated Companies
|
62,023 | 149,169 | ||||||
Accrued Unbilled Revenues
|
28,066 | 19,449 | ||||||
Miscellaneous
|
11,714 | 10,968 | ||||||
Allowance for Uncollectible Accounts
|
(1,687 | ) | (1,692 | ) | ||||
Total Accounts Receivable
|
156,512 | 254,087 | ||||||
Fuel
|
79,584 | 87,551 | ||||||
Materials and Supplies
|
177,955 | 178,331 | ||||||
Risk Management Assets
|
26,436 | 27,526 | ||||||
Accrued Tax Benefits
|
68,504 | 71,113 | ||||||
Deferred Cook Plant Fire Costs
|
46,532 | 45,752 | ||||||
Prepayments and Other Current Assets
|
24,607 | 33,713 | ||||||
TOTAL CURRENT ASSETS
|
637,855 | 698,434 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
3,781,344 | 3,774,262 | ||||||
Transmission
|
1,197,343 | 1,188,665 | ||||||
Distribution
|
1,427,078 | 1,411,095 | ||||||
Other Property, Plant and Equipment (including nuclear fuel and coal mining)
|
715,565 | 719,708 | ||||||
Construction Work in Progress
|
301,781 | 301,534 | ||||||
Total Property, Plant and Equipment
|
7,423,111 | 7,395,264 | ||||||
Accumulated Depreciation, Depletion and Amortization
|
3,153,696 | 3,124,998 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
4,269,415 | 4,270,266 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
534,389 | 556,254 | ||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
1,558,535 | 1,515,227 | ||||||
Long-term Risk Management Assets
|
31,923 | 31,485 | ||||||
Deferred Charges and Other Noncurrent Assets
|
85,384 | 77,229 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
2,210,231 | 2,180,195 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 7,117,501 | $ | 7,148,895 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
||||||||
|
||||||||
|
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT LIABILITIES
|
|
|
||||||
Advances from Affiliates
|
$ | - | $ | 42,769 | ||||
Accounts Payable:
|
||||||||
General
|
84,677 | 121,665 | ||||||
Affiliated Companies
|
69,464 | 105,221 | ||||||
Long-term Debt Due Within One Year - Nonaffiliated
|
||||||||
(March 31, 2011 and December 31, 2010 amounts include $78,332 and $77,457,
|
||||||||
respectively, related to DCC Fuel)
|
155,332 | 154,457 | ||||||
Risk Management Liabilities
|
13,663 | 16,785 | ||||||
Customer Deposits
|
29,240 | 29,264 | ||||||
Accrued Taxes
|
78,574 | 62,637 | ||||||
Accrued Interest
|
23,045 | 27,444 | ||||||
Other Current Liabilities
|
142,392 | 140,710 | ||||||
TOTAL CURRENT LIABILITIES
|
596,387 | 700,952 | ||||||
|
||||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term Debt – Nonaffiliated
|
1,843,771 | 1,849,769 | ||||||
Long-term Risk Management Liabilities
|
7,992 | 6,530 | ||||||
Deferred Income Taxes
|
780,312 | 760,105 | ||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
866,458 | 852,197 | ||||||
Asset Retirement Obligations
|
974,935 | 963,029 | ||||||
Deferred Credits and Other Noncurrent Liabilities
|
317,865 | 313,892 | ||||||
TOTAL NONCURRENT LIABILITIES
|
4,791,333 | 4,745,522 | ||||||
|
||||||||
TOTAL LIABILITIES
|
5,387,720 | 5,446,474 | ||||||
|
||||||||
Cumulative Preferred Stock Not Subject to Mandatory Redemption
|
8,072 | 8,072 | ||||||
|
||||||||
Rate Matters (Note 2)
|
||||||||
Commitments and Contingencies (Note 3)
|
||||||||
|
||||||||
COMMON SHAREHOLDER’S EQUITY
|
||||||||
Common Stock – No Par Value:
|
||||||||
Authorized – 2,500,000 Shares
|
||||||||
Outstanding – 1,400,000 Shares
|
56,584 | 56,584 | ||||||
Paid-in Capital
|
981,294 | 981,294 | ||||||
Retained Earnings
|
703,952 | 677,360 | ||||||
Accumulated Other Comprehensive Income (Loss)
|
(20,121 | ) | (20,889 | ) | ||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
1,721,709 | 1,694,349 | ||||||
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 7,117,501 | $ | 7,148,895 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 45,427 | $ | 45,058 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
||||||||
Depreciation and Amortization
|
34,087 | 33,831 | ||||||
Deferred Income Taxes
|
25,087 | 18,442 | ||||||
Amortization (Deferral) of Incremental Nuclear Refueling Outage Expenses, Net
|
11,616 | (20,025 | ) | |||||
Allowance for Equity Funds Used During Construction
|
(3,199 | ) | (4,435 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
(658 | ) | (20,345 | ) | ||||
Amortization of Nuclear Fuel
|
34,240 | 30,090 | ||||||
Fuel Over/Under Recovery, Net
|
4,156 | 16,439 | ||||||
Change in Other Noncurrent Assets
|
(6,066 | ) | (11,056 | ) | ||||
Change in Other Noncurrent Liabilities
|
13,327 | 28,926 | ||||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
97,575 | 28,078 | ||||||
Fuel, Materials and Supplies
|
8,343 | (18,972 | ) | |||||
Accounts Payable
|
(71,206 | ) | 13,171 | |||||
Accrued Taxes, Net
|
14,479 | 23,964 | ||||||
Other Current Assets
|
(1,475 | ) | (13,044 | ) | ||||
Other Current Liabilities
|
3,865 | 38,068 | ||||||
Net Cash Flows from Operating Activities
|
209,598 | 188,190 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(54,733 | ) | (104,796 | ) | ||||
Change in Advances to Affiliates, Net
|
(56,813 | ) | 28,826 | |||||
Purchases of Investment Securities
|
(305,945 | ) | (247,632 | ) | ||||
Sales of Investment Securities
|
287,761 | 232,078 | ||||||
Acquisitions of Nuclear Fuel
|
(27,132 | ) | (37,616 | ) | ||||
Other Investing Activities
|
17,029 | 500 | ||||||
Net Cash Flows Used for Investing Activities
|
(139,833 | ) | (128,640 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt - Nonaffiliated
|
76,864 | - | ||||||
Change in Advances from Affiliates, Net
|
(42,769 | ) | - | |||||
Retirement of Long-term Debt - Nonaffiliated
|
(82,354 | ) | - | |||||
Retirement of Long-term Debt - Affiliated
|
- | (25,000 | ) | |||||
Principal Payments for Capital Lease Obligations
|
(2,128 | ) | (8,524 | ) | ||||
Dividends Paid on Common Stock
|
(18,750 | ) | (25,750 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
(85 | ) | (85 | ) | ||||
Other Financing Activities
|
8 | 24 | ||||||
Net Cash Flows Used for Financing Activities
|
(69,214 | ) | (59,335 | ) | ||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
551 | 215 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
361 | 779 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 912 | $ | 994 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 28,542 | $ | 30,056 | ||||
Net Cash Paid (Received) for Income Taxes
|
(1,033 | ) | - | |||||
Noncash Acquisitions Under Capital Leases
|
693 | 8,476 | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
21,651 | 29,496 | ||||||
Acquisition of Nuclear Fuel Included in Current Liabilities at March 31,
|
377 | 2,705 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 5
|
Business Segments
|
Note 6
|
Derivatives and Hedging
|
Note 7
|
Fair Value Measurements
|
Note 8
|
Income Taxes
|
Note 9
|
Financing Activities
|
Note 10
|
Cost Reduction Initiatives
|
Note 11
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
2,324
|
|
|
2,284
|
|
Commercial
|
|
1,393
|
|
|
1,359
|
|
Industrial
|
|
3,275
|
|
|
3,058
|
|
Miscellaneous
|
|
20
|
|
|
20
|
Total Retail
|
|
7,012
|
|
|
6,721
|
|
|
|
|
|
|
|
|
Wholesale
|
|
1,907
|
|
|
1,342
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
8,919
|
|
|
8,063
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
2,242
|
|
|
2,157
|
|
Normal - Heating (b)
|
|
2,042
|
|
|
2,043
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
1
|
|
|
-
|
|
Normal - Cooling (b)
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
|||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 92 | ||
|
||||
Changes in Gross Margin:
|
||||
Retail Margins
|
22 | |||
Transmission Revenues
|
3 | |||
Other Revenues
|
1 | |||
Total Change in Gross Margin
|
26 | |||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
(19 | ) | ||
Depreciation and Amortization
|
(3 | ) | ||
Taxes Other Than Income Taxes
|
(2 | ) | ||
Carrying Costs Income
|
2 | |||
Interest Expense
|
3 | |||
Total Expenses and Other
|
(19 | ) | ||
|
||||
Income Tax Expense
|
1 | |||
|
||||
First Quarter of 2011
|
$ | 100 |
·
|
Retail Margins increased $22 million primarily due to the following:
|
|
·
|
A $14 million increase in revenue due to the implementation of PUCO approved rider rates in June 2010 related to the Energy Efficiency & Peak Demand Reduction (EE/PDR) Programs. This increase in Retail Margins was offset by a corresponding increase in Other Operation and Maintenance as discussed below.
|
|
·
|
A $13 million increase in revenues due to increases in residential, commercial and industrial customer usage. The industrial increase was driven primarily by increased Ormet load.
|
|
·
|
A $7 million increase in revenues due to the implementation of PUCO approved rider rates in September 2010 related to the Environmental Investment Carrying Cost Rider.
|
|
·
|
A $5 million increase in revenues due to a January 2011 Universal Service Fund surcharge rate increase. This increase in Retail Margins was offset by a corresponding increase in Other Operation and Maintenance as discussed below.
|
|
These increases were partially offset by:
|
||
·
|
A $12 million decrease in capacity settlements under the Interconnection Agreement.
|
|
·
|
Transmission Revenues increased $3 million primarily due to the Transmission Agreement modification effective November 2010, a portion of which is included in the Ohio Transmission Cost Recovery Rider.
|
·
|
Other Operation and Maintenance expenses increased $19 million primarily due to the following:
|
|
·
|
A $14 million increase in expenses due to the implementation of PUCO approved EE/PDR programs. This increase in Other Operation and Maintenance expense was offset by a corresponding increase in Retail Margins as discussed above.
|
|
·
|
A $7 million increase due to a favorable 2010 employee benefit adjustment.
|
|
·
|
A $6 million increase in maintenance expenses from planned and forced outages at various plants.
|
·
|
A $5 million increase in remitted Universal Service Fund surcharge payments to the Ohio Department of Development to fund an energy assistance program for qualified Ohio customers. This increase in Other Operation and Maintenance expense was offset by a corresponding increase in Retail Margins as discussed above.
|
|
These increases were partially offset by:
|
||
·
|
An $11 million gain from the sale of land in January 2011.
|
|
·
|
Income Tax Expense decreased $1 million primarily due to the 2010 tax treatment associated with the future reimbursement of Medicare Part D retiree prescription drug benefits, partially offset by an increase in pretax book income.
|
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
$ | 440 | $ | 1,984 | ||||
Net Cash Flows from Operating Activities
|
229,340 | 251,324 | ||||||
Net Cash Flows Used for Investing Activities
|
(10,877 | ) | (258,305 | ) | ||||
Net Cash Flows from (Used for) Financing Activities
|
(217,699 | ) | 6,150 | |||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
764 | (831 | ) | |||||
Cash and Cash Equivalents at End of Period
|
$ | 1,204 | $ | 1,153 |
Issuances
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
Interest
|
|
Due
|
|
|
Type of Debt
|
|
Amount
|
|
Rate
|
|
Date
|
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
|
Pollution Control Bonds
|
|
$
|
50,000
|
(a)
|
Variable
|
|
2014
|
|
(a) |
These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, this bond has been classified for maturity purposes as Long-term Debt Due Within One Year - Nonaffiliated on OPCo’s Condensed Consolidated Balance Sheets.
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
Interest
|
|
Due
|
|
|
Type of Debt
|
|
Amount Paid
|
|
Rate
|
|
Date
|
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
|
Pollution Control Bonds
|
|
$
|
65,000
|
|
Variable
|
|
2036
|
|
Pollution Control Bonds
|
|
|
50,000
|
|
Variable
|
|
2014
|
|
Pollution Control Bonds
|
|
|
50,000
|
|
Variable
|
|
2014
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Electric Generation, Transmission and Distribution
|
$ | 626,806 | $ | 543,700 | ||||
Sales to AEP Affiliates
|
225,049 | 306,768 | ||||||
Other Revenues – Affiliated
|
7,018 | 6,574 | ||||||
Other Revenues – Nonaffiliated
|
3,955 | 4,231 | ||||||
TOTAL REVENUES
|
862,828 | 861,273 | ||||||
|
||||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
294,483 | 331,017 | ||||||
Purchased Electricity for Resale
|
44,897 | 38,890 | ||||||
Purchased Electricity from AEP Affiliates
|
27,694 | 22,191 | ||||||
Other Operation
|
99,718 | 89,156 | ||||||
Maintenance
|
64,312 | 56,231 | ||||||
Depreciation and Amortization
|
91,986 | 89,361 | ||||||
Taxes Other Than Income Taxes
|
55,161 | 53,084 | ||||||
TOTAL EXPENSES
|
678,251 | 679,930 | ||||||
|
||||||||
OPERATING INCOME
|
184,577 | 181,343 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest Income
|
291 | 405 | ||||||
Carrying Costs Income
|
7,077 | 4,874 | ||||||
Allowance for Equity Funds Used During Construction
|
432 | 1,031 | ||||||
Interest Expense
|
(37,272 | ) | (39,975 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
155,105 | 147,678 | ||||||
|
||||||||
Income Tax Expense
|
54,693 | 55,775 | ||||||
|
||||||||
NET INCOME
|
100,412 | 91,903 | ||||||
|
||||||||
Less: Preferred Stock Dividend Requirements
|
183 | 183 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
$ | 100,229 | $ | 91,720 | ||||
|
||||||||
The common stock of OPCo is wholly-owned by AEP.
|
||||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
|
|
Accumulated
|
|
|||||||||||||||
|
|
|
|
Other
|
|
|||||||||||||||
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|
|||||||||||||||
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|||||||||||||||
EQUITY – DECEMBER 31, 2009
|
$ | 321,201 | $ | 1,123,149 | $ | 1,908,803 | $ | (118,458 | ) | $ | 3,234,695 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(75,287 | ) | (75,287 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(183 | ) | (183 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
3,159,225 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income (Loss),
|
||||||||||||||||||||
Net of Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $817
|
(1,517 | ) | (1,517 | ) | ||||||||||||||||
Amortization of Pension and OPEB Deferred Costs,
|
||||||||||||||||||||
Net of Tax of $949
|
1,762 | 1,762 | ||||||||||||||||||
NET INCOME
|
91,903 | 91,903 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
92,148 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2010
|
$ | 321,201 | $ | 1,123,149 | $ | 1,925,236 | $ | (118,213 | ) | $ | 3,251,373 | |||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – DECEMBER 31, 2010
|
$ | 321,201 | $ | 1,123,153 | $ | 1,852,889 | $ | (128,819 | ) | $ | 3,168,424 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(100,000 | ) | (100,000 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(183 | ) | (183 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
3,068,241 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income,
|
||||||||||||||||||||
Net of Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $43
|
80 | 80 | ||||||||||||||||||
Amortization of Pension and OPEB Deferred Costs,
|
||||||||||||||||||||
Net of Tax of $1,078
|
2,002 | 2,002 | ||||||||||||||||||
NET INCOME
|
100,412 | 100,412 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
102,494 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2011
|
$ | 321,201 | $ | 1,123,153 | $ | 1,853,118 | $ | (126,737 | ) | $ | 3,170,735 | |||||||||
|
||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 1,204 | $ | 440 | ||||
Advances to Affiliates
|
82,684 | 100,500 | ||||||
Accounts Receivable:
|
||||||||
Customers
|
83,643 | 86,186 | ||||||
Affiliated Companies
|
158,008 | 198,845 | ||||||
Accrued Unbilled Revenues
|
27,402 | 27,928 | ||||||
Miscellaneous
|
853 | 2,368 | ||||||
Allowance for Uncollectible Accounts
|
(2,181 | ) | (2,184 | ) | ||||
Total Accounts Receivable
|
267,725 | 313,143 | ||||||
Fuel
|
217,945 | 257,289 | ||||||
Materials and Supplies
|
128,509 | 134,181 | ||||||
Risk Management Assets
|
27,776 | 30,773 | ||||||
Accrued Tax Benefits
|
13,781 | 69,021 | ||||||
Prepayments and Other Current Assets
|
33,549 | 33,998 | ||||||
TOTAL CURRENT ASSETS
|
773,173 | 939,345 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
6,894,869 | 6,890,110 | ||||||
Transmission
|
1,249,671 | 1,234,677 | ||||||
Distribution
|
1,638,926 | 1,626,390 | ||||||
Other Property, Plant and Equipment
|
359,626 | 359,254 | ||||||
Construction Work in Progress
|
143,808 | 153,110 | ||||||
Total Property, Plant and Equipment
|
10,286,900 | 10,263,541 | ||||||
Accumulated Depreciation and Amortization
|
3,690,781 | 3,606,777 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
6,596,119 | 6,656,764 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
959,912 | 934,011 | ||||||
Long-term Risk Management Assets
|
29,384 | 28,012 | ||||||
Deferred Charges and Other Noncurrent Assets
|
163,024 | 189,195 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
1,152,320 | 1,151,218 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 8,521,612 | $ | 8,747,327 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
||||||||
|
||||||||
|
||||||||
|
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
OHIO POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
CURRENT LIABILITIES
|
|
|
||||||
Accounts Payable:
|
|
|
||||||
General
|
$ | 143,376 | $ | 170,240 | ||||
Affiliated Companies
|
108,344 | 136,215 | ||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
50,000 | 165,000 | ||||||
Risk Management Liabilities
|
17,431 | 22,166 | ||||||
Customer Deposits
|
23,996 | 28,228 | ||||||
Accrued Taxes
|
190,471 | 229,253 | ||||||
Accrued Interest
|
45,089 | 46,184 | ||||||
Other Current Liabilities
|
93,953 | 98,687 | ||||||
TOTAL CURRENT LIABILITIES
|
672,660 | 895,973 | ||||||
|
||||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term Debt – Nonaffiliated
|
2,364,651 | 2,364,522 | ||||||
Long-term Debt – Affiliated
|
200,000 | 200,000 | ||||||
Long-term Risk Management Liabilities
|
10,149 | 8,403 | ||||||
Deferred Income Taxes
|
1,522,242 | 1,531,639 | ||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
129,893 | 126,403 | ||||||
Employee Benefits and Pension Obligations
|
243,759 | 246,517 | ||||||
Deferred Credits and Other Noncurrent Liabilities
|
190,907 | 188,830 | ||||||
TOTAL NONCURRENT LIABILITIES
|
4,661,601 | 4,666,314 | ||||||
|
||||||||
TOTAL LIABILITIES
|
5,334,261 | 5,562,287 | ||||||
|
||||||||
Cumulative Preferred Stock Not Subject to Mandatory Redemption
|
16,616 | 16,616 | ||||||
|
||||||||
Rate Matters (Note 2)
|
||||||||
Commitments and Contingencies (Note 3)
|
||||||||
|
||||||||
COMMON SHAREHOLDER’S EQUITY
|
||||||||
Common Stock – No Par Value:
|
||||||||
Authorized – 40,000,000 Shares
|
||||||||
Outstanding – 27,952,473 Shares
|
321,201 | 321,201 | ||||||
Paid-in Capital
|
1,123,153 | 1,123,153 | ||||||
Retained Earnings
|
1,853,118 | 1,852,889 | ||||||
Accumulated Other Comprehensive Income (Loss)
|
(126,737 | ) | (128,819 | ) | ||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
3,170,735 | 3,168,424 | ||||||
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 8,521,612 | $ | 8,747,327 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 100,412 | $ | 91,903 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from
|
||||||||
Operating Activities:
|
||||||||
Depreciation and Amortization
|
91,986 | 89,361 | ||||||
Deferred Income Taxes
|
29,038 | 41,462 | ||||||
Carrying Costs Income
|
(7,077 | ) | (4,874 | ) | ||||
Allowance for Equity Funds Used During Construction
|
(432 | ) | (1,031 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
(818 | ) | (13,704 | ) | ||||
Property Taxes
|
24,950 | 24,242 | ||||||
Fuel Over/Under-Recovery, Net
|
(16,306 | ) | (38,025 | ) | ||||
Change in Other Noncurrent Assets
|
(11,927 | ) | (5,008 | ) | ||||
Change in Other Noncurrent Liabilities
|
11,271 | (1,741 | ) | |||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
45,418 | 62,075 | ||||||
Fuel, Materials and Supplies
|
45,016 | 57,032 | ||||||
Accounts Payable
|
(51,223 | ) | (10,190 | ) | ||||
Customer Deposits
|
(4,232 | ) | 829 | |||||
Accrued Taxes, Net
|
(22,818 | ) | (30,082 | ) | ||||
Accrued Interest
|
(1,095 | ) | 2,243 | |||||
Other Current Assets
|
480 | (8,331 | ) | |||||
Other Current Liabilities
|
(3,303 | ) | (4,837 | ) | ||||
Net Cash Flows from Operating Activities
|
229,340 | 251,324 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(50,248 | ) | (78,398 | ) | ||||
Change in Advances to Affiliates, Net
|
17,816 | (178,947 | ) | |||||
Acquisitions of Assets
|
(1,288 | ) | (823 | ) | ||||
Proceeds from Sales of Assets
|
22,843 | 2,047 | ||||||
Other Investing Activities
|
- | (2,184 | ) | |||||
Net Cash Flows Used for Investing Activities
|
(10,877 | ) | (258,305 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt – Nonaffiliated
|
49,917 | 85,487 | ||||||
Retirement of Long-term Debt – Nonaffiliated
|
(165,000 | ) | - | |||||
Principal Payments for Capital Lease Obligations
|
(2,271 | ) | (2,101 | ) | ||||
Dividends Paid on Common Stock
|
(100,000 | ) | (75,287 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
(183 | ) | (183 | ) | ||||
Other Financing Activities
|
(162 | ) | (1,766 | ) | ||||
Net Cash Flows from (Used for) Financing Activities
|
(217,699 | ) | 6,150 | |||||
|
||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
764 | (831 | ) | |||||
Cash and Cash Equivalents at Beginning of Period
|
440 | 1,984 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 1,204 | $ | 1,153 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 36,936 | $ | 36,243 | ||||
Net Cash Paid for Income Taxes
|
755 | - | ||||||
Noncash Acquisitions Under Capital Leases
|
330 | 22,559 | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
15,559 | 12,894 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 5
|
Business Segments
|
Note 6
|
Derivatives and Hedging
|
Note 7
|
Fair Value Measurements
|
Note 8
|
Income Taxes
|
Note 9
|
Financing Activities
|
Note 10
|
Cost Reduction Initiatives
|
Note 11
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
1,540
|
|
|
1,555
|
|
Commercial
|
|
1,130
|
|
|
1,070
|
|
Industrial
|
|
1,123
|
|
|
1,145
|
|
Miscellaneous
|
|
279
|
|
|
269
|
Total Retail
|
|
4,072
|
|
|
4,039
|
|
|
|
|
|
|
|
|
Wholesale
|
|
234
|
|
|
349
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
4,306
|
|
|
4,388
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,257
|
|
|
1,330
|
|
Normal - Heating (b)
|
|
1,058
|
|
|
1,047
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
33
|
|
|
8
|
|
Normal - Cooling (b)
|
|
13
|
|
|
13
|
|
|
|
|
|
|
|
|
(a)
|
Western Region heating degree days are calculated on a 55 degree temperature base.
|
|||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Western Region cooling degree days are calculated on a 65 degree temperature base.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 4 | ||
|
||||
Changes in Gross Margin:
|
||||
Other Revenues
|
(2 | ) | ||
Total Change in Gross Margin
|
(2 | ) | ||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
15 | |||
Depreciation and Amortization
|
3 | |||
Interest Expense
|
1 | |||
Total Expenses and Other
|
19 | |||
|
||||
Income Tax Expense
|
(6 | ) | ||
|
||||
First Quarter of 2011
|
$ | 15 |
·
|
Other Revenues decreased $2 million primarily due to lower gains on the sale of emission allowances.
|
·
|
Other Operation and Maintenance expenses decreased $15 million primarily due to the following:
|
|
·
|
A $5 million decrease in maintenance of overhead lines primarily due to a decrease in vegetation management activities.
|
|
·
|
A $4 million decrease in plant maintenance expense resulting primarily from the 2011 deferral of generation maintenance expenses as a result of PSO’s base rate case.
|
|
·
|
A $2 million decrease in transmission expense primarily due to SPP formula rate adjustments.
|
|
·
|
Depreciation and Amortization expenses decreased $3 million primarily due to a decrease in amortization of regulatory assets related to the Lawton settlement which was fully recovered in August 2010.
|
|
·
|
Income Tax Expense increased $6 million primarily due to an increase in pretax book income.
|
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
$ | 470 | $ | 796 | ||||
Net Cash Flows from (Used for) Operating Activities
|
98,230 | (60,332 | ) | |||||
Net Cash Flows from (Used for) Investing Activities
|
(35,602 | ) | 5,380 | |||||
Net Cash Flows from (Used for) Financing Activities
|
(62,344 | ) | 55,082 | |||||
Net Increase in Cash and Cash Equivalents
|
284 | 130 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 754 | $ | 926 |
Issuances
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
Interest
|
|
Due
|
|
|
Type of Debt
|
|
Amount
|
|
Rate
|
|
Date
|
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
|
Senior Unsecured Notes
|
|
$
|
250,000
|
|
4.40
|
|
2021
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
Interest
|
|
Due
|
|
|
Type of Debt
|
|
Amount Paid
|
|
Rate
|
|
Date
|
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
|
Senior Unsecured Notes
|
|
$
|
200,000
|
|
6.00
|
|
2032
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||
CONDENSED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Electric Generation, Transmission and Distribution
|
$ | 284,587 | $ | 228,551 | ||||
Sales to AEP Affiliates
|
2,796 | 8,670 | ||||||
Other Revenues
|
620 | 534 | ||||||
TOTAL REVENUES
|
288,003 | 237,755 | ||||||
|
||||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
91,748 | 40,972 | ||||||
Purchased Electricity for Resale
|
41,179 | 44,980 | ||||||
Purchased Electricity from AEP Affiliates
|
16,611 | 10,992 | ||||||
Other Operation
|
44,404 | 49,662 | ||||||
Maintenance
|
20,721 | 30,939 | ||||||
Depreciation and Amortization
|
23,863 | 27,288 | ||||||
Taxes Other Than Income Taxes
|
10,596 | 10,300 | ||||||
TOTAL EXPENSES
|
249,122 | 215,133 | ||||||
|
||||||||
OPERATING INCOME
|
38,881 | 22,622 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest Income
|
52 | 182 | ||||||
Carrying Costs Income
|
647 | 867 | ||||||
Allowance for Equity Funds Used During Construction
|
366 | 247 | ||||||
Interest Expense
|
(15,938 | ) | (17,363 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
24,008 | 6,555 | ||||||
|
||||||||
Income Tax Expense
|
8,619 | 2,416 | ||||||
|
||||||||
NET INCOME
|
15,389 | 4,139 | ||||||
|
||||||||
Preferred Stock Dividend Requirements
|
49 | 53 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
$ | 15,340 | $ | 4,086 | ||||
|
||||||||
The common stock of PSO is wholly-owned by AEP.
|
||||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||||||||||||||
CONDENSED STATEMENTS OF CHANGES IN COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
Accumulated
|
|
|||||||||||||||
|
|
|
|
Other
|
|
|||||||||||||||
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|
|||||||||||||||
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|||||||||||||||
EQUITY – DECEMBER 31, 2009
|
$ | 157,230 | $ | 364,231 | $ | 290,880 | $ | (599 | ) | $ | 811,742 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(12,687 | ) | (12,687 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(53 | ) | (53 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
799,002 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Income, Net of Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $62
|
116 | 116 | ||||||||||||||||||
NET INCOME
|
4,139 | 4,139 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
4,255 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2010
|
$ | 157,230 | $ | 364,231 | $ | 282,279 | $ | (483 | ) | $ | 803,257 | |||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – DECEMBER 31, 2010
|
$ | 157,230 | $ | 364,307 | $ | 312,441 | $ | 8,494 | $ | 842,472 | ||||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(16,250 | ) | (16,250 | ) | ||||||||||||||||
Preferred Stock Dividends
|
(49 | ) | (49 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
826,173 | |||||||||||||||||||
|
||||||||||||||||||||
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Other Comprehensive Loss, Net of Taxes:
|
||||||||||||||||||||
Cash Flow Hedges, Net of Tax of $239
|
(443 | ) | (443 | ) | ||||||||||||||||
NET INCOME
|
15,389 | 15,389 | ||||||||||||||||||
TOTAL COMPREHENSIVE INCOME
|
14,946 | |||||||||||||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2011
|
$ | 157,230 | $ | 364,307 | $ | 311,531 | $ | 8,051 | $ | 841,119 | ||||||||||
|
||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||
CONDENSED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 754 | $ | 470 | ||||
Advances to Affiliates
|
3,093 | - | ||||||
Accounts Receivable:
|
||||||||
Customers
|
35,810 | 43,049 | ||||||
Affiliated Companies
|
42,858 | 65,070 | ||||||
Miscellaneous
|
4,960 | 5,497 | ||||||
Allowance for Uncollectible Accounts
|
(433 | ) | (971 | ) | ||||
Total Accounts Receivable
|
83,195 | 112,645 | ||||||
Fuel
|
20,678 | 20,176 | ||||||
Materials and Supplies
|
46,410 | 46,247 | ||||||
Risk Management Assets
|
680 | 14,225 | ||||||
Accrued Tax Benefits
|
36,779 | 38,589 | ||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
31,399 | 37,262 | ||||||
Prepayments and Other Current Assets
|
13,517 | 9,416 | ||||||
TOTAL CURRENT ASSETS
|
236,505 | 279,030 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
1,333,338 | 1,330,368 | ||||||
Transmission
|
676,541 | 663,994 | ||||||
Distribution
|
1,705,879 | 1,686,470 | ||||||
Other Property, Plant and Equipment
|
236,883 | 235,406 | ||||||
Construction Work in Progress
|
43,902 | 59,091 | ||||||
Total Property, Plant and Equipment
|
3,996,543 | 3,975,329 | ||||||
Accumulated Depreciation and Amortization
|
1,260,749 | 1,255,064 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
2,735,794 | 2,720,265 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
268,611 | 263,545 | ||||||
Long-term Risk Management Assets
|
351 | 252 | ||||||
Deferred Charges and Other Noncurrent Assets
|
44,211 | 20,979 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
313,173 | 284,776 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 3,285,472 | $ | 3,284,071 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
||||||||
|
||||||||
|
||||||||
|
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||
CONDENSED BALANCE SHEETS
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
CURRENT LIABILITIES
|
|
|
||||||
Advances from Affiliates
|
$ | - | $ | 91,382 | ||||
Accounts Payable:
|
||||||||
General
|
60,778 | 69,155 | ||||||
Affiliated Companies
|
63,171 | 53,179 | ||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
75,116 | 25,000 | ||||||
Risk Management Liabilities
|
1,193 | 922 | ||||||
Customer Deposits
|
42,837 | 41,217 | ||||||
Accrued Taxes
|
43,581 | 25,390 | ||||||
Accrued Interest
|
17,094 | 9,238 | ||||||
Other Current Liabilities
|
33,830 | 38,095 | ||||||
TOTAL CURRENT LIABILITIES
|
337,600 | 353,578 | ||||||
|
||||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term Debt – Nonaffiliated
|
944,259 | 946,186 | ||||||
Long-term Risk Management Liabilities
|
193 | 197 | ||||||
Deferred Income Taxes
|
669,885 | 660,783 | ||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
343,277 | 336,961 | ||||||
Employee Benefits and Pension Obligations
|
97,406 | 98,107 | ||||||
Deferred Credits and Other Noncurrent Liabilities
|
46,851 | 40,905 | ||||||
TOTAL NONCURRENT LIABILITIES
|
2,101,871 | 2,083,139 | ||||||
|
||||||||
TOTAL LIABILITIES
|
2,439,471 | 2,436,717 | ||||||
|
||||||||
Cumulative Preferred Stock Not Subject to Mandatory Redemption
|
4,882 | 4,882 | ||||||
|
||||||||
Rate Matters (Note 2)
|
||||||||
Commitments and Contingencies (Note 3)
|
||||||||
|
||||||||
COMMON SHAREHOLDER’S EQUITY
|
||||||||
Common Stock – Par Value – $15 Per Share:
|
||||||||
Authorized – 11,000,000 Shares
|
||||||||
Issued – 10,482,000 Shares
|
||||||||
Outstanding – 9,013,000 Shares
|
157,230 | 157,230 | ||||||
Paid-in Capital
|
364,307 | 364,307 | ||||||
Retained Earnings
|
311,531 | 312,441 | ||||||
Accumulated Other Comprehensive Income (Loss)
|
8,051 | 8,494 | ||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
841,119 | 842,472 | ||||||
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 3,285,472 | $ | 3,284,071 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||
CONDENSED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 15,389 | $ | 4,139 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from (Used for) Operating
|
||||||||
Activities:
|
||||||||
Depreciation and Amortization
|
23,863 | 27,288 | ||||||
Deferred Income Taxes
|
15,364 | 20,526 | ||||||
Carrying Costs Income
|
(647 | ) | (867 | ) | ||||
Allowance for Equity Funds Used During Construction
|
(366 | ) | (247 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
397 | (2,959 | ) | |||||
Property Taxes
|
(28,113 | ) | (27,797 | ) | ||||
Fuel Over/Under-Recovery, Net
|
5,863 | (82,112 | ) | |||||
Change in Other Noncurrent Assets
|
(770 | ) | (10,473 | ) | ||||
Change in Other Noncurrent Liabilities
|
20,617 | 1,764 | ||||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
29,450 | 5,626 | ||||||
Fuel, Materials and Supplies
|
(665 | ) | (2,362 | ) | ||||
Accounts Payable
|
4,103 | 15,235 | ||||||
Accrued Taxes, Net
|
11,392 | 1,152 | ||||||
Other Current Assets
|
(2,025 | ) | (2,108 | ) | ||||
Other Current Liabilities
|
4,378 | (7,137 | ) | |||||
Net Cash Flows from (Used for) Operating Activities
|
98,230 | (60,332 | ) | |||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(32,876 | ) | (54,837 | ) | ||||
Change in Advances to Affiliates, Net
|
(3,093 | ) | 62,695 | |||||
Other Investing Activities
|
367 | (2,478 | ) | |||||
Net Cash Flows from (Used for) Investing Activities
|
(35,602 | ) | 5,380 | |||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt – Nonaffiliated
|
246,376 | - | ||||||
Change in Advances from Affiliates, Net
|
(91,382 | ) | 68,743 | |||||
Retirement of Long-term Debt – Nonaffiliated
|
(200,000 | ) | - | |||||
Principal Payments for Capital Lease Obligations
|
(1,039 | ) | (1,026 | ) | ||||
Dividends Paid on Common Stock
|
(16,250 | ) | (12,687 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
(49 | ) | (53 | ) | ||||
Other Financing Activities
|
- | 105 | ||||||
Net Cash Flows from (Used for) Financing Activities
|
(62,344 | ) | 55,082 | |||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
284 | 130 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
470 | 796 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 754 | $ | 926 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid (Received) for Interest, Net of Capitalized Amounts
|
$ | (5,337 | ) | $ | 8,267 | |||
Net Cash Paid (Received) for Income Taxes
|
286 | (1,331 | ) | |||||
Noncash Acquisitions Under Capital Leases
|
384 | 13,274 | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
5,048 | 28,799 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 5
|
Business Segments
|
Note 6
|
Derivatives and Hedging
|
Note 7
|
Fair Value Measurements
|
Note 8
|
Income Taxes
|
Note 9
|
Financing Activities
|
Note 10
|
Cost Reduction Initiatives
|
Note 11
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in millions of KWH)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
1,604
|
|
|
1,599
|
|
Commercial
|
|
1,366
|
|
|
1,314
|
|
Industrial
|
|
1,252
|
|
|
1,146
|
|
Miscellaneous
|
|
20
|
|
|
19
|
Total Retail
|
|
4,242
|
|
|
4,078
|
|
|
|
|
|
|
|
|
Wholesale
|
|
1,877
|
|
|
1,813
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
6,119
|
|
|
5,891
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2011
|
|
2010
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
849
|
|
|
1,038
|
|
Normal - Heating (b)
|
|
745
|
|
|
738
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
51
|
|
|
5
|
|
Normal - Cooling (b)
|
|
31
|
|
|
31
|
|
|
|
|
|
|
|
|
(a)
|
Western Region heating degree days are calculated on a 55 degree temperature base.
|
|||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||
(c)
|
Western Region cooling degree days are calculated on a 65 degree temperature base.
|
First Quarter of 2011 Compared to First Quarter of 2010
|
|
|
|||
Reconciliation of First Quarter of 2010 to First Quarter of 2011
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|||
First Quarter of 2010
|
$ | 31 | ||
|
||||
Changes in Gross Margin:
|
||||
Retail Margins (a)
|
22 | |||
Off-system Sales
|
(1 | ) | ||
Transmission Revenues
|
(2 | ) | ||
Other Revenues
|
1 | |||
Total Change in Gross Margin
|
20 | |||
|
||||
Total Expenses and Other:
|
||||
Other Operation and Maintenance
|
(8 | ) | ||
Taxes Other Than Income Taxes
|
(1 | ) | ||
Other Income
|
(5 | ) | ||
Interest Expense
|
(4 | ) | ||
Total Expenses and Other
|
(18 | ) | ||
|
||||
Income Tax Expense
|
(3 | ) | ||
|
||||
First Quarter of 2011
|
$ | 30 |
|
|
|
|
|
|
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins increased $22 million primarily due to:
|
|
·
|
A $13 million increase primarily due to rate increases, including revenue increases from base rates in Texas and rate riders in Arkansas.
|
|
·
|
An $8 million increase in retail sales primarily due to increases in residential and commercial customers and usage in the industrial class.
|
|
·
|
Transmission Revenues decreased $2 million due to lower rates in the SPP region.
|
·
|
Other Operation and Maintenance expenses increased $8 million primarily due to an increase in distribution maintenance resulting from increased storm-related and overhead line maintenance expenses.
|
·
|
Other Income decreased $5 million primarily due to a decrease in the equity component of AFUDC as a result of the completed construction of the Stall Unit in June 2010.
|
·
|
Interest Expense increased $4 million primarily due to increased long-term debt outstanding.
|
·
|
Income Tax Expense increased $3 million primarily due to an increase in pretax book income and other book/tax differences which are accounted for on a flow-through basis.
|
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
$ | 1,514 | $ | 1,661 | ||||
Net Cash Flows from (Used for) Operating Activities
|
52,108 | (21,572 | ) | |||||
Net Cash Flows Used for Investing Activities
|
(39,011 | ) | (277,945 | ) | ||||
Net Cash Flows from (Used for) Financing Activities
|
(10,537 | ) | 299,536 | |||||
Net Increase in Cash and Cash Equivalents
|
2,560 | 19 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 4,074 | $ | 1,680 |
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2011
|
2010
|
||||||
REVENUES
|
|
|
||||||
Electric Generation, Transmission and Distribution
|
$ | 347,067 | $ | 333,078 | ||||
Sales to AEP Affiliates
|
15,579 | 9,333 | ||||||
Other Revenues
|
309 | 393 | ||||||
TOTAL REVENUES
|
362,955 | 342,804 | ||||||
|
||||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
134,012 | 122,888 | ||||||
Purchased Electricity for Resale
|
38,589 | 41,886 | ||||||
Purchased Electricity from AEP Affiliates
|
2,111 | 9,752 | ||||||
Other Operation
|
54,068 | 58,253 | ||||||
Maintenance
|
29,391 | 17,419 | ||||||
Depreciation and Amortization
|
33,290 | 33,243 | ||||||
Taxes Other Than Income Taxes
|
16,966 | 15,895 | ||||||
TOTAL EXPENSES
|
308,427 | 299,336 | ||||||
|
||||||||
OPERATING INCOME
|
54,528 | 43,468 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Other Income
|
10,540 | 15,596 | ||||||
Interest Expense
|
(22,425 | ) | (18,544 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
42,643 | 40,520 | ||||||
|
||||||||
Income Tax Expense
|
13,396 | 10,156 | ||||||
Equity Earnings of Unconsolidated Subsidiary
|
580 | 719 | ||||||
|
||||||||
NET INCOME
|
29,827 | 31,083 | ||||||
|
||||||||
Less: Net Income Attributable to Noncontrolling Interest
|
1,082 | 1,151 | ||||||
|
||||||||
NET INCOME ATTRIBUTABLE TO SWEPCo SHAREHOLDERS
|
28,745 | 29,932 | ||||||
|
||||||||
Less: Preferred Stock Dividend Requirements
|
57 | 57 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER
|
$ | 28,688 | $ | 29,875 | ||||
|
||||||||
The common stock of SWEPCo is wholly-owned by AEP.
|
||||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
|||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010
|
|||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
SWEPCo Common Shareholder
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|||||
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Noncontrolling
|
|
|
|||||||||
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Interest
|
|
Total
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – DECEMBER 31, 2009
|
|
$
|
135,660
|
|
$
|
674,979
|
|
$
|
726,478
|
|
$
|
(12,991)
|
|
$
|
31
|
|
$
|
1,524,157
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(809)
|
|
|
(809)
|
|||
Preferred Stock Dividends
|
|
|
|
|
|
|
|
|
(57)
|
|
|
|
|
|
|
|
|
(57)
|
|||
SUBTOTAL – EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,523,291
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Other Comprehensive Income, Net of Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Cash Flow Hedges, Net of Tax of $42
|
|
|
|
|
|
|
|
|
|
|
|
88
|
|
|
|
|
|
88
|
|
|
|
Amortization of Pension and OPEB Deferred Costs,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Tax of $127
|
|
|
|
|
|
|
|
|
|
|
|
235
|
|
|
|
|
|
235
|
NET INCOME
|
|
|
|
|
|
|
|
|
29,932
|
|
|
|
|
|
1,151
|
|
|
31,083
|
|||
TOTAL COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,406
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – MARCH 31, 2010
|
|
$
|
135,660
|
|
$
|
674,979
|
|
$
|
756,353
|
|
$
|
(12,668)
|
|
$
|
373
|
|
$
|
1,554,697
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – DECEMBER 31, 2010
|
|
$
|
135,660
|
|
$
|
674,979
|
|
$
|
868,840
|
|
$
|
(12,491)
|
|
$
|
361
|
|
$
|
1,667,349
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,077)
|
|
|
(1,077)
|
|||
Preferred Stock Dividends
|
|
|
|
|
|
|
|
|
(57)
|
|
|
|
|
|
|
|
|
(57)
|
|||
SUBTOTAL – EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,666,215
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Other Comprehensive Income, Net of Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Cash Flow Hedges, Net of Tax of $202
|
|
|
|
|
|
|
|
|
|
|
|
376
|
|
|
|
|
|
376
|
|
|
|
Amortization of Pension and OPEB Deferred Costs,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Tax of $69
|
|
|
|
|
|
|
|
|
|
|
|
128
|
|
|
|
|
|
128
|
NET INCOME
|
|
|
|
|
|
|
|
|
28,745
|
|
|
|
|
|
1,082
|
|
|
29,827
|
|||
TOTAL COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,331
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – MARCH 31, 2011
|
|
$
|
135,660
|
|
$
|
674,979
|
|
$
|
897,528
|
|
$
|
(11,987)
|
|
$
|
366
|
|
$
|
1,696,546
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
|
|
||||||
Cash and Cash Equivalents
|
$ | 4,074 | $ | 1,514 | ||||
Advances to Affiliates
|
9,367 | 86,222 | ||||||
Accounts Receivable:
|
||||||||
Customers
|
30,005 | 34,434 | ||||||
Affiliated Companies
|
43,583 | 43,219 | ||||||
Miscellaneous
|
19,879 | 17,739 | ||||||
Allowance for Uncollectible Accounts
|
(768 | ) | (588 | ) | ||||
Total Accounts Receivable
|
92,699 | 94,804 | ||||||
Fuel
|
||||||||
(March 31, 2011 and December 31, 2010 amounts include $29,201 and
|
||||||||
$35,055, respectively, related to Sabine)
|
86,985 | 91,777 | ||||||
Materials and Supplies
|
50,699 | 50,395 | ||||||
Risk Management Assets
|
757 | 1,209 | ||||||
Deferred Income Tax Benefits
|
12,085 | 15,529 | ||||||
Accrued Tax Benefits
|
33,747 | 37,900 | ||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
844 | 758 | ||||||
Prepayments and Other Current Assets
|
24,616 | 24,270 | ||||||
TOTAL CURRENT ASSETS
|
315,873 | 404,378 | ||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric:
|
||||||||
Generation
|
2,299,370 | 2,297,463 | ||||||
Transmission
|
947,670 | 943,724 | ||||||
Distribution
|
1,623,579 | 1,611,129 | ||||||
Other Property, Plant and Equipment
|
||||||||
(March 31, 2011 and December 31, 2010 amounts include $229,639 and
|
||||||||
$224,857, respectively, related to Sabine)
|
636,470 | 632,158 | ||||||
Construction Work in Progress
|
1,162,297 | 1,071,603 | ||||||
Total Property, Plant and Equipment
|
6,669,386 | 6,556,077 | ||||||
Accumulated Depreciation and Amortization
|
||||||||
(March 31, 2011 and December 31, 2010 amounts include $95,616 and
|
||||||||
$91,840, respectively, related to Sabine)
|
2,158,412 | 2,130,351 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
4,510,974 | 4,425,726 | ||||||
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||
Regulatory Assets
|
343,306 | 332,698 | ||||||
Long-term Risk Management Assets
|
641 | 438 | ||||||
Deferred Charges and Other Noncurrent Assets
|
108,687 | 80,327 | ||||||
TOTAL OTHER NONCURRENT ASSETS
|
452,634 | 413,463 | ||||||
|
||||||||
TOTAL ASSETS
|
$ | 5,279,481 | $ | 5,243,567 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
||||||||
|
|
|
|
||||||
|
|
|
||||||
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
March 31, 2011 and December 31, 2010
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
CURRENT LIABILITIES
|
|
|
||||||
Accounts Payable:
|
|
|
||||||
General
|
$ | 143,290 | $ | 162,271 | ||||
Affiliated Companies
|
70,582 | 64,474 | ||||||
Short-term Debt – Nonaffiliated
|
- | 6,217 | ||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
61,135 | 41,135 | ||||||
Risk Management Liabilities
|
2,225 | 4,067 | ||||||
Customer Deposits
|
50,638 | 48,245 | ||||||
Accrued Taxes
|
62,358 | 30,516 | ||||||
Accrued Interest
|
17,721 | 39,856 | ||||||
Obligations Under Capital Leases
|
13,752 | 13,265 | ||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
9,444 | 16,432 | ||||||
Provision for SIA Refund
|
4,239 | 7,698 | ||||||
Other Current Liabilities
|
49,248 | 59,420 | ||||||
TOTAL CURRENT LIABILITIES
|
484,632 | 493,596 | ||||||
|
||||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term Debt – Nonaffiliated
|
1,708,448 | 1,728,385 | ||||||
Long-term Risk Management Liabilities
|
355 | 338 | ||||||
Deferred Income Taxes
|
627,682 | 624,333 | ||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
406,342 | 393,673 | ||||||
Asset Retirement Obligations
|
57,572 | 56,632 | ||||||
Employee Benefits and Pension Obligations
|
97,347 | 96,314 | ||||||
Obligations Under Capital Leases
|
116,158 | 115,399 | ||||||
Deferred Credits and Other Noncurrent Liabilities
|
79,703 | 62,852 | ||||||
TOTAL NONCURRENT LIABILITIES
|
3,093,607 | 3,077,926 | ||||||
|
||||||||
TOTAL LIABILITIES
|
3,578,239 | 3,571,522 | ||||||
|
||||||||
Cumulative Preferred Stock Not Subject to Mandatory Redemption
|
4,696 | 4,696 | ||||||
|
||||||||
Rate Matters (Note 2)
|
||||||||
Commitments and Contingencies (Note 3)
|
||||||||
|
||||||||
EQUITY
|
||||||||
Common Stock – Par Value – $18 Per Share:
|
||||||||
Authorized – 7,600,000 Shares
|
||||||||
Outstanding – 7,536,640 Shares
|
135,660 | 135,660 | ||||||
Paid-in Capital
|
674,979 | 674,979 | ||||||
Retained Earnings
|
897,528 | 868,840 | ||||||
Accumulated Other Comprehensive Income (Loss)
|
(11,987 | ) | (12,491 | ) | ||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
1,696,180 | 1,666,988 | ||||||
|
||||||||
Noncontrolling Interest
|
366 | 361 | ||||||
|
||||||||
TOTAL EQUITY
|
1,696,546 | 1,667,349 | ||||||
|
||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 5,279,481 | $ | 5,243,567 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2011 and 2010
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2011
|
2010
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 29,827 | $ | 31,083 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from (Used for)
|
||||||||
Operating Activities:
|
||||||||
Depreciation and Amortization
|
33,290 | 33,243 | ||||||
Deferred Income Taxes
|
15,440 | 477 | ||||||
Allowance for Equity Funds Used During Construction
|
(10,597 | ) | (15,517 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
(1,348 | ) | 1,324 | |||||
Property Taxes
|
(30,534 | ) | (28,569 | ) | ||||
Fuel Over/Under-Recovery, Net
|
(7,074 | ) | (9,565 | ) | ||||
Change in Other Noncurrent Assets
|
13,210 | 409 | ||||||
Change in Other Noncurrent Liabilities
|
20,206 | 3,779 | ||||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
2,162 | (5,975 | ) | |||||
Fuel, Materials and Supplies
|
4,488 | 17,008 | ||||||
Accounts Payable
|
(11,429 | ) | (46,408 | ) | ||||
Accrued Taxes, Net
|
29,884 | 38,552 | ||||||
Accrued Interest
|
(22,192 | ) | (15,512 | ) | ||||
Other Current Assets
|
(940 | ) | (4,310 | ) | ||||
Other Current Liabilities
|
(12,285 | ) | (21,591 | ) | ||||
Net Cash Flows from (Used for) Operating Activities
|
52,108 | (21,572 | ) | |||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(114,351 | ) | (88,731 | ) | ||||
Change in Advances to Affiliates, Net
|
76,855 | (187,000 | ) | |||||
Other Investing Activities
|
(1,515 | ) | (2,214 | ) | ||||
Net Cash Flows Used for Investing Activities
|
(39,011 | ) | (277,945 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt – Nonaffiliated
|
- | 399,650 | ||||||
Borrowings from Revolving Credit Facilities
|
18,478 | 23,743 | ||||||
Retirement of Long-term Debt – Nonaffiliated
|
- | (53,500 | ) | |||||
Retirement of Long-term Debt – Affiliated
|
- | (50,000 | ) | |||||
Repayments to Revolving Credit Facilities
|
(24,695 | ) | (17,415 | ) | ||||
Principal Payments for Capital Lease Obligations
|
(3,186 | ) | (2,858 | ) | ||||
Dividends Paid on Common Stock – Nonaffiliated
|
(1,077 | ) | (809 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
(57 | ) | (57 | ) | ||||
Other Financing Activities
|
- | 782 | ||||||
Net Cash Flows from (Used for) Financing Activities
|
(10,537 | ) | 299,536 | |||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
2,560 | 19 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
1,514 | 1,661 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 4,074 | $ | 1,680 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 41,646 | $ | 31,789 | ||||
Net Cash Paid (Received) for Income Taxes
|
698 | (1,062 | ) | |||||
Noncash Acquisitions Under Capital Leases
|
4,286 | 169 | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
94,536 | 71,395 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 143.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Acquisition
|
Note 4
|
Benefit Plans
|
Note 5
|
Business Segments
|
Note 6
|
Derivatives and Hedging
|
Note 7
|
Fair Value Measurements
|
Note 8
|
Income Taxes
|
Note 9
|
Financing Activities
|
Note 10
|
Cost Reduction Initiatives
|
Note 11
|
The condensed notes to condensed financial statements that follow are a combined presentation for the Registrant Subsidiaries. The following list indicates the registrants to which the footnotes apply:
|
||
1.
|
Significant Accounting Matters
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
2.
|
Rate Matters
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
3.
|
Commitments, Guarantees and Contingencies
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
4.
|
Acquisition
|
SWEPCo
|
5.
|
Benefit Plans
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
6.
|
Business Segments
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
7.
|
Derivatives and Hedging
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
8.
|
Fair Value Measurements
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
9.
|
Income Taxes
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
10.
|
Financing Activities
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
11.
|
Cost Reduction Initiatives
|
APCo, CSPCo, I&M, OPCo, PSO, SWEPCo
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||
VARIABLE INTEREST ENTITIES
|
|||||||
March 31, 2011 and December 31, 2010
|
|||||||
(in millions)
|
|||||||
|
Sabine
|
||||||
ASSETS
|
2011
|
2010
|
|||||
Current Assets
|
$ | 40 | $ | 50 | |||
Net Property, Plant and Equipment
|
142 | 139 | |||||
Other Noncurrent Assets
|
37 | 34 | |||||
Total Assets
|
$ | 219 | $ | 223 | |||
|
|||||||
LIABILITIES AND EQUITY
|
|||||||
Current Liabilities
|
$ | 44 | $ | 33 | |||
Noncurrent Liabilities
|
175 | 190 | |||||
Total Liabilities and Equity
|
$ | 219 | $ | 223 |
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||
VARIABLE INTEREST ENTITIES
|
|||||||
March 31, 2011 and December 31, 2010
|
|||||||
(in millions)
|
|||||||
|
DCC Fuel
|
||||||
ASSETS
|
2011
|
2010
|
|||||
Current Assets
|
$ | 107 | $ | 92 | |||
Net Property, Plant and Equipment
|
151 | 173 | |||||
Other Noncurrent Assets
|
93 | 112 | |||||
Total Assets
|
$ | 351 | $ | 377 | |||
|
|||||||
LIABILITIES AND EQUITY
|
|||||||
Current Liabilities
|
$ | 81 | $ | 79 | |||
Noncurrent Liabilities
|
270 | 298 | |||||
Total Liabilities and Equity
|
$ | 351 | $ | 377 |
|
March 31, 2011
|
December 31, 2010
|
||||||||||||||
|
As Reported on
|
|
As Reported on
|
|
||||||||||||
|
the Consolidated
|
Maximum
|
the Consolidated
|
Maximum
|
||||||||||||
|
Balance Sheet
|
Exposure
|
Balance Sheet
|
Exposure
|
||||||||||||
|
(in millions)
|
|||||||||||||||
Capital Contribution from SWEPCo
|
$ | 8 | $ | 8 | $ | 6 | $ | 6 | ||||||||
Retained Earnings
|
1 | 1 | 2 | 2 | ||||||||||||
SWEPCo's Guarantee of Debt
|
- | 46 | - | 48 | ||||||||||||
|
||||||||||||||||
Total Investment in DHLC
|
$ | 9 | $ | 55 | $ | 8 | $ | 56 |
|
Three Months Ended March 31,
|
||||||||
Company
|
2011
|
2010
|
|||||||
|
(in thousands)
|
||||||||
APCo
|
$ | 44,941 | $ | 59,389 | |||||
CSPCo
|
26,045 | 34,611 | |||||||
I&M
|
31,827 | 34,248 | |||||||
OPCo
|
37,832 | 49,104 | |||||||
PSO
|
19,418 | 23,736 | |||||||
SWEPCo
|
29,833 | 34,901 |
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
|
As Reported on the
|
|
Maximum
|
|
As Reported on the
|
|
Maximum
|
||||
Company
|
|
Balance Sheet
|
|
Exposure
|
|
Balance Sheet
|
|
Exposure
|
||||
|
|
(in thousands)
|
||||||||||
APCo
|
|
$
|
15,653
|
|
$
|
15,653
|
|
$
|
23,230
|
|
$
|
23,230
|
CSPCo
|
|
|
9,537
|
|
|
9,537
|
|
|
12,676
|
|
|
12,676
|
I&M
|
|
|
10,823
|
|
|
10,823
|
|
|
12,980
|
|
|
12,980
|
OPCo
|
|
|
12,959
|
|
|
12,959
|
|
|
16,927
|
|
|
16,927
|
PSO
|
|
|
6,676
|
|
|
6,676
|
|
|
9,384
|
|
|
9,384
|
SWEPCo
|
|
|
10,444
|
|
|
10,444
|
|
|
14,465
|
|
|
14,465
|
|
Three Months Ended March 31,
|
||||||||
Company
|
2011
|
2010
|
|||||||
|
(in thousands)
|
||||||||
CSPCo
|
$ | 51,034 | $ | 15,227 | |||||
I&M
|
52,821 | 56,149 |
|
|||||||||||||||||
|
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
|
As Reported in
|
|
As Reported in
|
|
|||||||||||||
|
the Consolidated
|
Maximum
|
the Consolidated
|
Maximum
|
|||||||||||||
Company
|
Balance Sheet
|
Exposure
|
Balance Sheet
|
Exposure
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
CSPCo
|
$ | 19,035 | $ | 19,035 | $ | 18,165 | $ | 18,165 | |||||||||
I&M
|
17,634 | 17,634 | 27,899 | 27,899 |
|
Three Months Ended
|
||||
Company
|
March 31, 2011
|
||||
|
(in thousands)
|
||||
APCo
|
$ | 2,481 | |||
CSPCo
|
1,420 | ||||
I&M
|
1,456 | ||||
OPCo
|
1,704 |
|
|
|
|
APCo
|
|
I&M
|
||||||||
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
December 31,
|
||||
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Noncurrent Regulatory Assets (excluding fuel)
|
|
(in thousands)
|
|
(in thousands)
|
||||||||||
Regulatory assets not yet being recovered
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
pending future proceedings to determine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the recovery method and timing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Virginia Environmental Rate Adjustment Clause
|
|
$
|
56,332
|
|
$
|
55,724
|
|
$
|
-
|
|
$
|
-
|
|
|
Deferred Wind Power Costs
|
|
|
33,636
|
|
|
28,584
|
|
|
-
|
|
|
-
|
|
|
Storm Related Costs
|
|
|
25,225
|
|
|
25,225
|
|
|
-
|
|
|
-
|
|
|
Mountaineer Carbon Capture and Storage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Validation Facility (b)
|
|
|
19,249
|
|
|
59,866
|
|
|
-
|
|
|
-
|
|
Special Rate Mechanism for Century Aluminum
|
|
|
12,674
|
|
|
12,628
|
|
|
-
|
|
|
-
|
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
1,036
|
|
|
604
|
|
|
-
|
|
|
-
|
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
148,152
|
|
$
|
182,631
|
|
$
|
-
|
|
$
|
-
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSPCo
|
|
OPCo
|
||||||||
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
December 31,
|
||||
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Noncurrent Regulatory Assets (excluding fuel)
|
|
(in thousands)
|
|
(in thousands)
|
||||||||||
Regulatory assets not yet being recovered
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
pending future proceedings to determine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the recovery method and timing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Assets Currently Earning a Return
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Line Extension Carrying Costs (a)
|
|
$
|
35,504
|
|
$
|
33,709
|
|
$
|
22,498
|
|
$
|
21,246
|
|
|
Customer Choice Deferrals (a)
|
|
|
29,911
|
|
|
29,716
|
|
|
29,314
|
|
|
29,141
|
|
|
Storm Related Costs (a)
|
|
|
19,366
|
|
|
19,122
|
|
|
11,161
|
|
|
11,021
|
|
|
Acquisition of Monongahela Power (a)
|
|
|
8,379
|
|
|
7,929
|
|
|
-
|
|
|
-
|
|
|
Economic Development Rider
|
|
|
3,100
|
|
|
3,057
|
|
|
3,100
|
|
|
3,057
|
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
289
|
|
|
287
|
|
|
393
|
|
|
391
|
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Acquisition of Monongahela Power (a)
|
|
|
4,052
|
|
|
4,052
|
|
|
-
|
|
|
-
|
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
46
|
|
|
43
|
|
|
61
|
|
|
58
|
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
100,647
|
|
$
|
97,915
|
|
$
|
66,527
|
|
$
|
64,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PSO
|
|
SWEPCo
|
||||||||
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
December 31,
|
||||
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Noncurrent Regulatory Assets (excluding fuel)
|
|
(in thousands)
|
|
(in thousands)
|
||||||||||
Regulatory assets not yet being recovered
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
pending future proceedings to determine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the recovery method and timing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Storm Related Costs
|
|
$
|
17,256
|
|
$
|
17,256
|
|
$
|
1,239
|
|
$
|
1,239
|
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
533
|
|
|
574
|
|
|
676
|
|
|
613
|
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
17,789
|
|
$
|
17,830
|
|
$
|
1,915
|
|
$
|
1,852
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Requested to be recovered in a distribution asset recovery rider. See the "Ohio Distribution Base Rate Case" section below.
|
|||||||||||||
(b)
|
APCo wrote off a portion of the Mountaineer Carbon Capture and Storage Product Validation Facility as denied for recovery by the WVPSC in March 2011. See "Mountaineer Carbon Capture and Storage Project Product Validation Facility" section below.
|
Michigan 2009 and 2010 Power Supply Cost Recovery (PSCR) Reconciliations (Cook Plant Unit 1 Fire and Shutdown)
|
Seams Elimination Cost Allocation (SECA) Revenue Subject to Refund – Affecting APCo, CSPCo, I&M and OPCo
|
Company
|
(in millions)
|
|||
APCo
|
$ | 70.2 | ||
CSPCo
|
38.8 | |||
I&M
|
41.3 | |||
OPCo
|
53.3 |
Company
|
(in millions)
|
|||
APCo
|
$ | 14.1 | ||
CSPCo
|
7.8 | |||
I&M
|
8.3 | |||
OPCo
|
10.7 |
Company
|
March 31, 2011
|
|||
(in millions)
|
||||
APCo
|
$ | 10.0 | ||
CSPCo
|
5.6 | |||
I&M
|
5.9 | |||
OPCo
|
7.6 |
Company
|
Potential Refund Payments
|
Potential Payments to be Received
|
||||||
(in millions)
|
||||||||
APCo
|
$ | 6.4 | $ | 3.2 | ||||
CSPCo
|
3.5 | 1.8 | ||||||
I&M
|
3.7 | 1.9 | ||||||
OPCo
|
4.8 | 2.4 |
Possible Termination of the Interconnection Agreement – Affecting APCo, CSPCo, I&M and OPCo
|
Company
|
|
Amount
|
|
Maturity
|
||
|
|
(in thousands)
|
|
|
||
$1.35 billion letters of credit:
|
|
|
|
|
|
|
|
I&M |
|
$
|
150
|
|
March 2012
|
SWEPCo |
|
|
4,448
|
|
June 2011
|
|
March 31, 2011
|
|||||||||||||
|
|
Reacquired
|
Bilateral
|
Maturity of
|
||||||||||
|
|
and Held
|
Letters of
|
Bilateral Letters
|
||||||||||
Company
|
Remarketed
|
in Trust
|
Credit Issued
|
of Credit
|
||||||||||
|
(in thousands)
|
|
||||||||||||
APCo
|
$ | 229,650 | $ | - | $ | 232,293 |
March 2013 to March 2014
|
|||||||
I&M
|
77,000 | - | 77,886 |
March 2013
|
||||||||||
OPCo
|
50,000 | 115,000 | 50,575 |
March 2013
|
Company
|
Maximum Potential Loss
|
||||
|
(in thousands)
|
||||
APCo
|
$ | 1,320 | |||
CSPCo
|
949 | ||||
I&M
|
1,782 | ||||
OPCo
|
1,262 | ||||
PSO
|
665 | ||||
SWEPCo
|
2,652 |
The Comprehensive Environmental Response Compensation and Liability Act (Superfund) and State Remediation – Affecting I&M
|
APCo
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,800 | $ | 3,227 | $ | 1,246 | $ | 1,430 | ||||||||
Interest Cost
|
8,070 | 8,489 | 4,867 | 5,075 | ||||||||||||
Expected Return on Plan Assets
|
(10,458 | ) | (10,951 | ) | (4,496 | ) | (4,406 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 286 | 1,311 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
229 | 229 | (43 | ) | - | |||||||||||
Amortization of Net Actuarial Loss
|
4,141 | 2,960 | 1,455 | 1,352 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 3,782 | $ | 3,954 | $ | 3,315 | $ | 4,762 |
CSPCo
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 849 | $ | 1,468 | $ | 609 | $ | 690 | ||||||||
Interest Cost
|
4,302 | 4,789 | 2,040 | 2,178 | ||||||||||||
Expected Return on Plan Assets
|
(5,724 | ) | (6,589 | ) | (1,987 | ) | (1,979 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 11 | 608 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
141 | 141 | (18 | ) | - | |||||||||||
Amortization of Net Actuarial Loss
|
2,210 | 1,677 | 577 | 565 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 1,778 | $ | 1,486 | $ | 1,232 | $ | 2,062 |
I&M
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 2,358 | $ | 3,821 | $ | 1,530 | $ | 1,687 | ||||||||
Interest Cost
|
6,929 | 7,272 | 3,403 | 3,541 | ||||||||||||
Expected Return on Plan Assets
|
(9,214 | ) | (8,760 | ) | (3,472 | ) | (3,349 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 47 | 703 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
186 | 186 | (59 | ) | - | |||||||||||
Amortization of Net Actuarial Loss
|
3,534 | 2,516 | 891 | 882 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 3,793 | $ | 5,035 | $ | 2,340 | $ | 3,464 |
OPCo
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,708 | $ | 2,846 | $ | 1,348 | $ | 1,356 | ||||||||
Interest Cost
|
7,776 | 8,186 | 4,335 | 4,447 | ||||||||||||
Expected Return on Plan Assets
|
(10,642 | ) | (10,680 | ) | (4,142 | ) | (4,045 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 26 | 1,053 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
227 | 227 | (35 | ) | - | |||||||||||
Amortization of Net Actuarial Loss
|
3,990 | 2,860 | 1,227 | 1,154 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 3,059 | $ | 3,439 | $ | 2,759 | $ | 3,965 |
PSO
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,438 | $ | 1,513 | $ | 655 | $ | 703 | ||||||||
Interest Cost
|
3,305 | 3,722 | 1,512 | 1,590 | ||||||||||||
Expected Return on Plan Assets
|
(4,366 | ) | (4,935 | ) | (1,566 | ) | (1,527 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | - | 702 | ||||||||||||
Amortization of Prior Service Credit
|
(236 | ) | (237 | ) | (19 | ) | - | |||||||||
Amortization of Net Actuarial Loss
|
1,678 | 1,297 | 388 | 393 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 1,819 | $ | 1,360 | $ | 970 | $ | 1,861 |
SWEPCo
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,642 | $ | 1,762 | $ | 757 | $ | 777 | ||||||||
Interest Cost
|
3,318 | 3,774 | 1,742 | 1,735 | ||||||||||||
Expected Return on Plan Assets
|
(4,595 | ) | (4,873 | ) | (1,800 | ) | (1,662 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | - | 615 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
(198 | ) | (199 | ) | 65 | - | ||||||||||
Amortization of Net Actuarial Loss
|
1,680 | 1,310 | 446 | 428 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 1,847 | $ | 1,774 | $ | 1,210 | $ | 1,893 |
Notional Volume of Derivative Instruments
|
||||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Risk
|
|
Unit of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Exposure
|
|
Measure
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||
|
|
|
|
|
|
(in thousands)
|
||||||||||||||||
Commodity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Power
|
|
MWHs
|
|
|
159,506
|
|
|
91,314
|
|
|
94,583
|
|
|
109,542
|
|
|
22
|
|
|
26
|
|
|
Coal
|
|
Tons
|
|
|
7,623
|
|
|
4,688
|
|
|
7,683
|
|
|
24,587
|
|
|
4,523
|
|
|
7,773
|
|
|
Natural Gas
|
|
MMBtus
|
|
|
3,141
|
|
|
1,798
|
|
|
1,843
|
|
|
2,156
|
|
|
24
|
|
|
29
|
|
|
Heating Oil and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
Gallons
|
|
|
1,154
|
|
|
513
|
|
|
572
|
|
|
855
|
|
|
674
|
|
|
621
|
|
Interest Rate
|
|
USD
|
|
$
|
43,158
|
|
$
|
24,712
|
|
$
|
25,382
|
|
$
|
29,957
|
|
$
|
309
|
|
$
|
410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Foreign Currency
|
|
USD
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional Volume of Derivative Instruments
|
||||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Risk
|
|
Unit of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Exposure
|
|
Measure
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||
|
|
|
|
|
|
(in thousands)
|
||||||||||||||||
Commodity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Power
|
|
MWHs
|
|
|
194,217
|
|
|
111,959
|
|
|
117,862
|
|
|
136,657
|
|
|
21
|
|
|
34
|
|
|
Coal
|
|
Tons
|
|
|
11,195
|
|
|
5,550
|
|
|
6,571
|
|
|
23,033
|
|
|
4,936
|
|
|
8,777
|
|
|
Natural Gas
|
|
MMBtus
|
|
|
2,166
|
|
|
1,248
|
|
|
1,302
|
|
|
1,524
|
|
|
15
|
|
|
19
|
|
|
Heating Oil and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
Gallons
|
|
|
1,054
|
|
|
467
|
|
|
521
|
|
|
776
|
|
|
616
|
|
|
564
|
|
Interest Rate
|
|
USD
|
|
$
|
9,541
|
|
$
|
5,471
|
|
$
|
5,732
|
|
$
|
7,185
|
|
$
|
609
|
|
$
|
793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Foreign Currency
|
|
USD
|
|
$
|
200,000
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
200,000
|
|
$
|
189
|
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND THE IMPACT ON THE FINANCIAL STATEMENTS
|
|
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
|
Cash Collateral
|
Cash Collateral
|
Cash Collateral
|
Cash Collateral
|
|||||||||||||
|
Received
|
Paid
|
Received
|
Paid
|
|||||||||||||
|
Netted Against
|
Netted Against
|
Netted Against
|
Netted Against
|
|||||||||||||
|
Risk Management
|
Risk Management
|
Risk Management
|
Risk Management
|
|||||||||||||
Company
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
APCo
|
$ | 1,324 | $ | 18,013 | $ | 1,809 | $ | 16,229 | |||||||||
CSPCo
|
758 | 10,312 | 1,042 | 9,347 | |||||||||||||
I&M
|
777 | 10,573 | 1,087 | 9,757 | |||||||||||||
OPCo
|
909 | 12,375 | 1,272 | 11,561 | |||||||||||||
PSO
|
3 | 5 | - | 44 | |||||||||||||
SWEPCo
|
4 | 7 | - | 72 |
Fair Value of Derivative Instruments
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
210,704
|
|
$
|
3,016
|
|
$
|
-
|
|
$
|
(174,797)
|
|
$
|
38,923
|
|
Long-term Risk Management Assets
|
|
|
88,548
|
|
|
699
|
|
|
-
|
|
|
(48,981)
|
|
|
40,266
|
|
Total Assets
|
|
|
299,252
|
|
|
3,715
|
|
|
-
|
|
|
(223,778)
|
|
|
79,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
206,660
|
|
|
2,709
|
|
|
-
|
|
|
(186,623)
|
|
|
22,746
|
|
Long-term Risk Management Liabilities
|
|
|
69,582
|
|
|
756
|
|
|
-
|
|
|
(56,999)
|
|
|
13,339
|
|
Total Liabilities
|
|
|
276,242
|
|
|
3,465
|
|
|
-
|
|
|
(243,622)
|
|
|
36,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
23,010
|
|
$
|
250
|
|
$
|
-
|
|
$
|
19,844
|
|
$
|
43,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
267,702
|
|
$
|
1,956
|
|
$
|
11,888
|
|
$
|
(228,304)
|
|
$
|
53,242
|
|
Long-term Risk Management Assets
|
|
|
79,560
|
|
|
714
|
|
|
-
|
|
|
(41,854)
|
|
|
38,420
|
|
Total Assets
|
|
|
347,262
|
|
|
2,670
|
|
|
11,888
|
|
|
(270,158)
|
|
|
91,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
262,027
|
|
|
2,363
|
|
|
-
|
|
|
(236,397)
|
|
|
27,993
|
|
Long-term Risk Management Liabilities
|
|
|
61,724
|
|
|
701
|
|
|
-
|
|
|
(51,552)
|
|
|
10,873
|
|
Total Liabilities
|
|
|
323,751
|
|
|
3,064
|
|
|
-
|
|
|
(287,949)
|
|
|
38,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
23,511
|
|
$
|
(394)
|
|
$
|
11,888
|
|
$
|
17,791
|
|
$
|
52,796
|
Fair Value of Derivative Instruments
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSPCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
121,773
|
|
$
|
1,647
|
|
$
|
-
|
|
$
|
(101,199)
|
|
$
|
22,221
|
|
Long-term Risk Management Assets
|
|
|
50,892
|
|
|
400
|
|
|
-
|
|
|
(28,212)
|
|
|
23,080
|
|
Total Assets
|
|
|
172,665
|
|
|
2,047
|
|
|
-
|
|
|
(129,411)
|
|
|
45,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
119,471
|
|
|
1,551
|
|
|
-
|
|
|
(107,969)
|
|
|
13,053
|
|
Long-term Risk Management Liabilities
|
|
|
40,022
|
|
|
433
|
|
|
-
|
|
|
(32,802)
|
|
|
7,653
|
|
Total Liabilities
|
|
|
159,493
|
|
|
1,984
|
|
|
-
|
|
|
(140,771)
|
|
|
20,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
13,172
|
|
$
|
63
|
|
$
|
-
|
|
$
|
11,360
|
|
$
|
24,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSPCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
149,886
|
|
$
|
1,164
|
|
$
|
-
|
|
$
|
(127,276)
|
|
$
|
23,774
|
|
Long-term Risk Management Assets
|
|
|
45,413
|
|
|
412
|
|
|
-
|
|
|
(23,736)
|
|
|
22,089
|
|
Total Assets
|
|
|
195,299
|
|
|
1,576
|
|
|
-
|
|
|
(151,012)
|
|
|
45,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
146,540
|
|
|
1,362
|
|
|
-
|
|
|
(131,935)
|
|
|
15,967
|
|
Long-term Risk Management Liabilities
|
|
|
35,144
|
|
|
404
|
|
|
-
|
|
|
(29,325)
|
|
|
6,223
|
|
Total Liabilities
|
|
|
181,684
|
|
|
1,766
|
|
|
-
|
|
|
(161,260)
|
|
|
22,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
13,615
|
|
$
|
(190)
|
|
$
|
-
|
|
$
|
10,248
|
|
$
|
23,673
|
Fair Value of Derivative Instruments
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I&M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
138,531
|
|
$
|
1,713
|
|
$
|
-
|
|
$
|
(113,808)
|
|
$
|
26,436
|
|
Long-term Risk Management Assets
|
|
|
61,967
|
|
|
410
|
|
|
-
|
|
|
(30,454)
|
|
|
31,923
|
|
Total Assets
|
|
|
200,498
|
|
|
2,123
|
|
|
-
|
|
|
(144,262)
|
|
|
58,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
132,824
|
|
|
1,590
|
|
|
-
|
|
|
(120,751)
|
|
|
13,663
|
|
Long-term Risk Management Liabilities
|
|
|
42,708
|
|
|
443
|
|
|
-
|
|
|
(35,159)
|
|
|
7,992
|
|
Total Liabilities
|
|
|
175,532
|
|
|
2,033
|
|
|
-
|
|
|
(155,910)
|
|
|
21,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
24,966
|
|
$
|
90
|
|
$
|
-
|
|
$
|
11,648
|
|
$
|
36,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I&M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
162,896
|
|
$
|
1,151
|
|
$
|
-
|
|
$
|
(136,521)
|
|
$
|
27,526
|
|
Long-term Risk Management Assets
|
|
|
56,154
|
|
|
429
|
|
|
-
|
|
|
(25,098)
|
|
|
31,485
|
|
Total Assets
|
|
|
219,050
|
|
|
1,580
|
|
|
-
|
|
|
(161,619)
|
|
|
59,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
156,750
|
|
|
1,421
|
|
|
-
|
|
|
(141,386)
|
|
|
16,785
|
|
Long-term Risk Management Liabilities
|
|
|
37,039
|
|
|
421
|
|
|
-
|
|
|
(30,930)
|
|
|
6,530
|
|
Total Liabilities
|
|
|
193,789
|
|
|
1,842
|
|
|
-
|
|
|
(172,316)
|
|
|
23,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
25,261
|
|
$
|
(262)
|
|
$
|
-
|
|
$
|
10,697
|
|
$
|
35,696
|
Fair Value of Derivative Instruments
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
213,460
|
|
$
|
2,108
|
|
$
|
-
|
|
$
|
(187,792)
|
|
$
|
27,776
|
|
Long-term Risk Management Assets
|
|
|
72,831
|
|
|
480
|
|
|
-
|
|
|
(43,927)
|
|
|
29,384
|
|
Total Assets
|
|
|
286,291
|
|
|
2,588
|
|
|
-
|
|
|
(231,719)
|
|
|
57,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
211,485
|
|
|
1,861
|
|
|
-
|
|
|
(195,915)
|
|
|
17,431
|
|
Long-term Risk Management Liabilities
|
|
|
59,066
|
|
|
519
|
|
|
-
|
|
|
(49,436)
|
|
|
10,149
|
|
Total Liabilities
|
|
|
270,551
|
|
|
2,380
|
|
|
-
|
|
|
(245,351)
|
|
|
27,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
15,740
|
|
$
|
208
|
|
$
|
-
|
|
$
|
13,632
|
|
$
|
29,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
262,751
|
|
$
|
1,316
|
|
$
|
-
|
|
$
|
(233,294)
|
|
$
|
30,773
|
|
Long-term Risk Management Assets
|
|
|
63,533
|
|
|
503
|
|
|
-
|
|
|
(36,024)
|
|
|
28,012
|
|
Total Assets
|
|
|
326,284
|
|
|
1,819
|
|
|
-
|
|
|
(269,318)
|
|
|
58,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
259,635
|
|
|
1,663
|
|
|
-
|
|
|
(239,132)
|
|
|
22,166
|
|
Long-term Risk Management Liabilities
|
|
|
50,757
|
|
|
493
|
|
|
-
|
|
|
(42,847)
|
|
|
8,403
|
|
Total Liabilities
|
|
|
310,392
|
|
|
2,156
|
|
|
-
|
|
|
(281,979)
|
|
|
30,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
15,892
|
|
$
|
(337)
|
|
$
|
-
|
|
$
|
12,661
|
|
$
|
28,216
|
Fair Value of Derivative Instruments
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PSO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
13,454
|
|
$
|
376
|
|
$
|
-
|
|
$
|
(13,150)
|
|
$
|
680
|
|
Long-term Risk Management Assets
|
|
|
2,344
|
|
|
-
|
|
|
-
|
|
|
(1,993)
|
|
|
351
|
|
Total Assets
|
|
|
15,798
|
|
|
376
|
|
|
-
|
|
|
(15,143)
|
|
|
1,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
14,331
|
|
|
-
|
|
|
-
|
|
|
(13,138)
|
|
|
1,193
|
|
Long-term Risk Management Liabilities
|
|
|
2,200
|
|
|
-
|
|
|
-
|
|
|
(2,007)
|
|
|
193
|
|
Total Liabilities
|
|
|
16,531
|
|
|
-
|
|
|
-
|
|
|
(15,145)
|
|
|
1,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
(733)
|
|
$
|
376
|
|
$
|
-
|
|
$
|
2
|
|
$
|
(355)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PSO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
||||||
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
19,174
|
|
$
|
134
|
|
$
|
13,558
|
|
$
|
(18,641)
|
|
$
|
14,225
|
|
Long-term Risk Management Assets
|
|
|
1,944
|
|
|
-
|
|
|
-
|
|
|
(1,692)
|
|
|
252
|
|
Total Assets
|
|
|
21,118
|
|
|
134
|
|
|
13,558
|
|
|
(20,333)
|
|
|
14,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
19,607
|
|
|
-
|
|
|
-
|
|
|
(18,685)
|
|
|
922
|
|
Long-term Risk Management Liabilities
|
|
|
1,889
|
|
|
-
|
|
|
-
|
|
|
(1,692)
|
|
|
197
|
|
Total Liabilities
|
|
|
21,496
|
|
|
-
|
|
|
-
|
|
|
(20,377)
|
|
|
1,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Liabilities)
|
|
$
|
(378)
|
|
$
|
134
|
|
$
|
13,558
|
|
$
|
44
|
|
$
|
13,358
|
Fair Value of Derivative Instruments
|
|||||||||||||||||
March 31, 2011
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWEPCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
|||||||
|
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
24,688
|
|
$
|
347
|
|
$
|
1
|
|
$
|
(24,279)
|
|
$
|
757
|
||
Long-term Risk Management Assets
|
|
|
4,306
|
|
|
-
|
|
|
8
|
|
|
(3,673)
|
|
|
641
|
||
Total Assets
|
|
|
28,994
|
|
|
347
|
|
|
9
|
|
|
(27,952)
|
|
|
1,398
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
26,493
|
|
|
1
|
|
|
-
|
|
|
(24,269)
|
|
|
2,225
|
||
Long-term Risk Management Liabilities
|
|
|
4,041
|
|
|
-
|
|
|
-
|
|
|
(3,686)
|
|
|
355
|
||
Total Liabilities
|
|
|
30,534
|
|
|
1
|
|
|
-
|
|
|
(27,955)
|
|
|
2,580
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Assets (Liabilities)
|
|
$
|
(1,540)
|
|
$
|
346
|
|
$
|
9
|
|
$
|
3
|
|
$
|
(1,182)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Derivative Instruments
|
|||||||||||||||||
December 31, 2010
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWEPCo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Risk
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
Management
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
Contracts
|
|
Hedging Contracts
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
Interest Rate
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
and Foreign
|
|
|
|
|
|||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Currency (a)
|
|
Other (a) (b)
|
|
Total
|
|||||||
|
|
|
|
(in thousands)
|
|||||||||||||
Current Risk Management Assets
|
|
$
|
33,284
|
|
$
|
123
|
|
$
|
-
|
|
$
|
(32,198)
|
|
$
|
1,209
|
||
Long-term Risk Management Assets
|
|
|
3,346
|
|
|
-
|
|
|
5
|
|
|
(2,913)
|
|
|
438
|
||
Total Assets
|
|
|
36,630
|
|
|
123
|
|
|
5
|
|
|
(35,111)
|
|
|
1,647
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Risk Management Liabilities
|
|
|
36,338
|
|
|
-
|
|
|
-
|
|
|
(32,271)
|
|
|
4,067
|
||
Long-term Risk Management Liabilities
|
|
|
3,250
|
|
|
-
|
|
|
-
|
|
|
(2,912)
|
|
|
338
|
||
Total Liabilities
|
|
|
39,588
|
|
|
-
|
|
|
-
|
|
|
(35,183)
|
|
|
4,405
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MTM Derivative Contract Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Assets (Liabilities)
|
|
$
|
(2,958)
|
|
$
|
123
|
|
$
|
5
|
|
$
|
72
|
|
$
|
(2,758)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the Condensed Balance Sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."
|
||||||||||||||||
(b)
|
Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include dedesignated risk management contracts.
|
Amount of Gain (Loss) Recognized on
|
||||||||||||||||||||||||
Risk Management Contracts
|
||||||||||||||||||||||||
For the Three Months Ended March 31, 2011
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
CSPCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||
Electric Generation, Transmission and
|
|
|
|
|
|
|
||||||||||||||||||
Distribution Revenues
|
$ | 1,816 | $ | 4,790 | $ | 5,415 | $ | 5,800 | $ | 119 | $ | 123 | ||||||||||||
Sales to AEP Affiliates
|
20 | 13 | 17 | 19 | 1 | 1 | ||||||||||||||||||
Regulatory Assets (a)
|
373 | 88 | 186 | 307 | (368 | ) | 1,642 | |||||||||||||||||
Regulatory Liabilities (a)
|
6,754 | - | 360 | (105 | ) | 392 | 340 | |||||||||||||||||
Total Gain (Loss) on Risk Management
|
||||||||||||||||||||||||
Contracts
|
$ | 8,963 | $ | 4,891 | $ | 5,978 | $ | 6,021 | $ | 144 | $ | 2,106 | ||||||||||||
|
||||||||||||||||||||||||
Amount of Gain (Loss) Recognized on
|
||||||||||||||||||||||||
Risk Management Contracts
|
||||||||||||||||||||||||
For the Three Months Ended March 31, 2010
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
CSPCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||
Electric Generation, Transmission and
|
||||||||||||||||||||||||
Distribution Revenues
|
$ | 4,173 | $ | 9,607 | $ | 6,885 | $ | 10,221 | $ | 683 | $ | 788 | ||||||||||||
Sales to AEP Affiliates
|
(2,361 | ) | (1,562 | ) | (1,443 | ) | 253 | (176 | ) | (308 | ) | |||||||||||||
Regulatory Assets (a)
|
- | - | - | - | 331 | (47 | ) | |||||||||||||||||
Regulatory Liabilities (a)
|
17,027 | 3,681 | 15,092 | 4,093 | 2,638 | (1,011 | ) | |||||||||||||||||
Total Gain (Loss) on Risk Management
|
||||||||||||||||||||||||
Contracts
|
$ | 18,839 | $ | 11,726 | $ | 20,534 | $ | 14,567 | $ | 3,476 | $ | (578 | ) | |||||||||||
|
||||||||||||||||||||||||
(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheet. |
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2011
|
|||||||||||||||||||||
|
|||||||||||||||||||||
Commodity Contracts
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||||
|
|
(in thousands)
|
|||||||||||||||||||
Balance in AOCI as of December 31, 2010
|
|
$
|
(273)
|
|
$
|
(134)
|
|
$
|
(178)
|
|
$
|
(230)
|
|
$
|
88
|
|
$
|
82
|
|||
Changes in Fair Value Recognized in AOCI
|
|
|
178
|
|
|
12
|
|
|
78
|
|
|
195
|
|
|
212
|
|
|
194
|
|||
Amount of (Gain) or Loss Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
from AOCI to Income Statement/within
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Electric Generation, Transmission, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Revenues
|
|
|
(4)
|
|
|
(12)
|
|
|
(10)
|
|
|
(14)
|
|
|
-
|
|
|
-
|
|
|
Fuel and Other Consumables Used for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Generation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Purchased Electricity for Resale
|
|
|
87
|
|
|
237
|
|
|
194
|
|
|
284
|
|
|
-
|
|
|
-
|
|
|
|
Other Operation Expense
|
|
|
(13)
|
|
|
(9)
|
|
|
(9)
|
|
|
(14)
|
|
|
(13)
|
|
|
(13)
|
|
|
|
Maintenance Expense
|
|
|
(25)
|
|
|
(6)
|
|
|
(10)
|
|
|
(13)
|
|
|
(7)
|
|
|
(8)
|
|
|
|
Property, Plant and Equipment
|
|
|
(23)
|
|
|
(9)
|
|
|
(11)
|
|
|
(18)
|
|
|
(16)
|
|
|
(11)
|
|
|
|
Regulatory Assets (a)
|
|
|
311
|
|
|
-
|
|
|
47
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Regulatory Liabilities (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance in AOCI as of March 31, 2011
|
|
$
|
238
|
|
$
|
79
|
|
$
|
101
|
|
$
|
190
|
|
$
|
264
|
|
$
|
244
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate and Foreign Currency Contracts
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||||
|
|
|
|
|
(in thousands)
|
||||||||||||||||
Balance in AOCI as of December 31, 2010
|
|
$
|
217
|
|
$
|
-
|
|
$
|
(8,507)
|
|
$
|
10,813
|
|
$
|
8,406
|
|
$
|
(4,272)
|
|||
Changes in Fair Value Recognized in AOCI
|
|
|
(373)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(476)
|
|
|
7
|
|||
Amount of (Gain) or Loss Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
from AOCI to Income Statement/within
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Depreciation and Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
Other Operation Expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Interest Expense
|
|
|
373
|
|
|
-
|
|
|
252
|
|
|
(341)
|
|
|
(143)
|
|
|
207
|
|
Balance in AOCI as of March 31, 2011
|
|
$
|
217
|
|
$
|
-
|
|
$
|
(8,255)
|
|
$
|
10,473
|
|
$
|
7,787
|
|
$
|
(4,058)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Contracts
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||||
|
|
|
|
|
(in thousands)
|
||||||||||||||||
Balance in AOCI as of December 31, 2010
|
|
$
|
(56)
|
|
$
|
(134)
|
|
$
|
(8,685)
|
|
$
|
10,583
|
|
$
|
8,494
|
|
$
|
(4,190)
|
|||
Changes in Fair Value Recognized in AOCI
|
|
|
(195)
|
|
|
12
|
|
|
78
|
|
|
195
|
|
|
(264)
|
|
|
201
|
|||
Amount of (Gain) or Loss Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
from AOCI to Income Statement/within
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Electric Generation, Transmission, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Revenues
|
|
|
(4)
|
|
|
(12)
|
|
|
(10)
|
|
|
(14)
|
|
|
-
|
|
|
-
|
|
|
Fuel and Other Consumables Used for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Generation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Purchased Electricity for Resale
|
|
|
87
|
|
|
237
|
|
|
194
|
|
|
284
|
|
|
-
|
|
|
-
|
|
|
|
Other Operation Expense
|
|
|
(13)
|
|
|
(9)
|
|
|
(9)
|
|
|
(14)
|
|
|
(13)
|
|
|
(13)
|
|
|
|
Maintenance Expense
|
|
|
(25)
|
|
|
(6)
|
|
|
(10)
|
|
|
(13)
|
|
|
(7)
|
|
|
(8)
|
|
|
|
Depreciation and Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
Interest Expense
|
|
|
373
|
|
|
-
|
|
|
252
|
|
|
(341)
|
|
|
(143)
|
|
|
207
|
|
|
|
Property, Plant and Equipment
|
|
|
(23)
|
|
|
(9)
|
|
|
(11)
|
|
|
(18)
|
|
|
(16)
|
|
|
(11)
|
|
|
|
Regulatory Assets (a)
|
|
|
311
|
|
|
-
|
|
|
47
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Regulatory Liabilities (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance in AOCI as of March 31, 2011
|
|
$
|
455
|
|
$
|
79
|
|
$
|
(8,154)
|
|
$
|
10,663
|
|
$
|
8,051
|
|
$
|
(3,814)
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2010
|
|||||||||||||||||||||
|
|||||||||||||||||||||
Commodity Contracts
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||||
|
|
(in thousands)
|
|||||||||||||||||||
Balance in AOCI as of December 31, 2009
|
|
$
|
(743)
|
|
$
|
(376)
|
|
$
|
(382)
|
|
$
|
(366)
|
|
$
|
(78)
|
|
$
|
112
|
|||
Changes in Fair Value Recognized in AOCI
|
|
|
(2,499)
|
|
|
(1,457)
|
|
|
(1,471)
|
|
|
(1,670)
|
|
|
86
|
|
|
3
|
|||
Amount of (Gain) or Loss Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
from AOCI to Income Statement/within
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Electric Generation, Transmission, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Revenues
|
|
|
26
|
|
|
65
|
|
|
54
|
|
|
76
|
|
|
-
|
|
|
-
|
|
|
Fuel and Other Consumables Used for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Generation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9)
|
|
|
-
|
|
|
-
|
|
|
Purchased Electricity for Resale
|
|
|
146
|
|
|
382
|
|
|
316
|
|
|
440
|
|
|
-
|
|
|
-
|
|
|
|
Other Operation Expense
|
|
|
(6)
|
|
|
(8)
|
|
|
(6)
|
|
|
(5)
|
|
|
(6)
|
|
|
(7)
|
|
|
|
Maintenance Expense
|
|
|
(14)
|
|
|
(6)
|
|
|
(5)
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
|
Property, Plant and Equipment
|
|
|
(9)
|
|
|
(7)
|
|
|
(5)
|
|
|
(5)
|
|
|
(6)
|
|
|
(4)
|
|
|
|
Regulatory Assets (a)
|
|
|
648
|
|
|
-
|
|
|
81
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Regulatory Liabilities (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance in AOCI as of March 31, 2010
|
|
$
|
(2,451)
|
|
$
|
(1,407)
|
|
$
|
(1,418)
|
|
$
|
(1,543)
|
|
$
|
(8)
|
|
$
|
100
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate and Foreign Currency Contracts
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||||
|
|
|
|
|
(in thousands)
|
||||||||||||||||
Balance in AOCI as of December 31, 2009
|
|
$
|
(6,450)
|
|
$
|
-
|
|
$
|
(9,514)
|
|
$
|
12,172
|
|
$
|
(521)
|
|
$
|
(5,047)
|
|||
Changes in Fair Value Recognized in AOCI
|
|
|
(456)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(107)
|
|||
Amount of (Gain) or Loss Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
from AOCI to Income Statement/within
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Depreciation and Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
Interest Expense
|
|
|
418
|
|
|
-
|
|
|
252
|
|
|
(341)
|
|
|
46
|
|
|
207
|
|
Balance in AOCI as of March 31, 2010
|
|
$
|
(6,488)
|
|
$
|
-
|
|
$
|
(9,262)
|
|
$
|
11,832
|
|
$
|
(475)
|
|
$
|
(4,947)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Contracts
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||||
|
|
|
|
|
(in thousands)
|
||||||||||||||||
Balance in AOCI as of December 31, 2009
|
|
$
|
(7,193)
|
|
$
|
(376)
|
|
$
|
(9,896)
|
|
$
|
11,806
|
|
$
|
(599)
|
|
$
|
(4,935)
|
|||
Changes in Fair Value Recognized in AOCI
|
|
|
(2,955)
|
|
|
(1,457)
|
|
|
(1,471)
|
|
|
(1,670)
|
|
|
86
|
|
|
(104)
|
|||
Amount of (Gain) or Loss Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
from AOCI to Income Statement/within
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Electric Generation, Transmission, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Revenues
|
|
|
26
|
|
|
65
|
|
|
54
|
|
|
76
|
|
|
-
|
|
|
-
|
|
|
Fuel and Other Consumables Used for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Generation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9)
|
|
|
-
|
|
|
-
|
|
|
Purchased Electricity for Resale
|
|
|
146
|
|
|
382
|
|
|
316
|
|
|
440
|
|
|
-
|
|
|
-
|
|
|
|
Other Operation Expense
|
|
|
(6)
|
|
|
(8)
|
|
|
(6)
|
|
|
(5)
|
|
|
(6)
|
|
|
(7)
|
|
|
|
Maintenance Expense
|
|
|
(14)
|
|
|
(6)
|
|
|
(5)
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
|
Depreciation and Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
Interest Expense
|
|
|
418
|
|
|
-
|
|
|
252
|
|
|
(341)
|
|
|
46
|
|
|
207
|
|
|
|
Property, Plant and Equipment
|
|
|
(9)
|
|
|
(7)
|
|
|
(5)
|
|
|
(5)
|
|
|
(6)
|
|
|
(4)
|
|
|
|
Regulatory Assets (a)
|
|
|
648
|
|
|
-
|
|
|
81
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Regulatory Liabilities (a)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance in AOCI as of March 31, 2010
|
|
$
|
(8,939)
|
|
$
|
(1,407)
|
|
$
|
(10,680)
|
|
$
|
10,289
|
|
$
|
(483)
|
|
$
|
(4,847)
|
|||
(a) Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the Balance Sheets.
|
Impact of Cash Flow Hedges on the Registrant Subsidiaries’
|
|||||||||||||||||||||||||
Condensed Balance Sheets
|
|||||||||||||||||||||||||
March 31, 2011
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
Hedging Assets (a)
|
Hedging Liabilities (a)
|
AOCI Gain (Loss) Net of Tax
|
||||||||||||||||||||||
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|||||||||||||||||||
|
|
and Foreign
|
|
and Foreign
|
|
and Foreign
|
|||||||||||||||||||
Company
|
Commodity
|
Currency
|
Commodity
|
Currency
|
Commodity
|
Currency
|
|||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
APCo
|
$ | 947 | $ | - | $ | (697 | ) | $ | - | $ | 238 | $ | 217 | ||||||||||||
CSPCo
|
462 | - | (399 | ) | - | 79 | - | ||||||||||||||||||
I&M
|
499 | - | (409 | ) | - | 101 | (8,255 | ) | |||||||||||||||||
OPCo
|
687 | - | (479 | ) | - | 190 | 10,473 | ||||||||||||||||||
PSO
|
376 | - | - | - | 264 | 7,787 | |||||||||||||||||||
SWEPCo
|
347 | 9 | (1 | ) | - | 244 | (4,058 | ) |
|
Expected to be Reclassified to
|
|
|||||||||||
|
Net Income During the Next
|
|
|||||||||||
|
Twelve Months
|
|
|||||||||||
|
|
|
Maximum Term for
|
||||||||||
|
|
Interest Rate
|
Exposure to
|
||||||||||
|
|
and Foreign
|
Variability of Future
|
||||||||||
Company
|
Commodity
|
Currency
|
Cash Flows
|
||||||||||
|
(in thousands)
|
(in months)
|
|||||||||||
APCo
|
$ | 247 | $ | (1,076 | ) | 38 | |||||||
CSPCo
|
85 | - | 38 | ||||||||||
I&M
|
105 | (853 | ) | 38 | |||||||||
OPCo
|
194 | 1,359 | 38 | ||||||||||
PSO
|
255 | 759 | 21 | ||||||||||
SWEPCo
|
234 | (829 | ) | 21 |
Impact of Cash Flow Hedges on the Registrant Subsidiaries’
|
|||||||||||||||||||||||||
Condensed Balance Sheets
|
|||||||||||||||||||||||||
December 31, 2010
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
Hedging Assets (a)
|
Hedging Liabilities (a)
|
AOCI Gain (Loss) Net of Tax
|
||||||||||||||||||||||
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|||||||||||||||||||
|
|
and Foreign
|
|
and Foreign
|
|
and Foreign
|
|||||||||||||||||||
Company
|
Commodity
|
Currency
|
Commodity
|
Currency
|
Commodity
|
Currency
|
|||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
APCo
|
$ | 333 | $ | 11,888 | $ | (727 | ) | $ | - | $ | (273 | ) | $ | 217 | |||||||||||
CSPCo
|
229 | - | (419 | ) | - | (134 | ) | - | |||||||||||||||||
I&M
|
175 | - | (437 | ) | - | (178 | ) | (8,507 | ) | ||||||||||||||||
OPCo
|
174 | - | (511 | ) | - | (230 | ) | 10,813 | |||||||||||||||||
PSO
|
134 | 13,558 | - | - | 88 | 8,406 | |||||||||||||||||||
SWEPCo
|
123 | 5 | - | - | 82 | (4,272 | ) |
|
Expected to be Reclassified to
|
||||||||
|
Net Income During the Next
|
||||||||
|
Twelve Months
|
||||||||
|
|
Interest Rate
|
|||||||
|
|
and Foreign
|
|||||||
Company
|
Commodity
|
Currency
|
|||||||
|
(in thousands)
|
||||||||
APCo
|
$ | (280 | ) | $ | (1,173 | ) | |||
CSPCo
|
(137 | ) | - | ||||||
I&M
|
(184 | ) | (955 | ) | |||||
OPCo
|
(236 | ) | 1,359 | ||||||
PSO
|
88 | 735 | |||||||
SWEPCo
|
82 | (829 | ) |
(a)
|
Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the Condensed Balance Sheets.
|
|
March 31, 2011
|
||||||||||||
|
Liabilities for
|
Amount of Collateral the
|
Amount
|
||||||||||
|
Derivative Contracts
|
Registrant Subsidiaries
|
Attributable to
|
||||||||||
|
with Credit
|
Would Have Been
|
RTO and ISO
|
||||||||||
Company
|
Downgrade Triggers
|
Required to Post
|
Activities
|
||||||||||
|
(in thousands)
|
||||||||||||
APCo
|
$ | 6,250 | $ | 14,845 | $ | 14,845 | |||||||
CSPCo
|
3,578 | 8,499 | 8,499 | ||||||||||
I&M
|
3,668 | 8,713 | 8,713 | ||||||||||
OPCo
|
4,292 | 10,195 | 10,195 | ||||||||||
PSO
|
- | 1,930 | 1,272 | ||||||||||
SWEPCo
|
- | 2,312 | 1,524 |
|
December 31, 2010
|
||||||||||||
|
Liabilities for
|
Amount of Collateral the
|
Amount
|
||||||||||
|
Derivative Contracts
|
Registrant Subsidiaries
|
Attributable to
|
||||||||||
|
with Credit
|
Would Have Been
|
RTO and ISO
|
||||||||||
Company
|
Downgrade Triggers
|
Required to Post
|
Activities
|
||||||||||
|
(in thousands)
|
||||||||||||
APCo
|
$ | 6,594 | $ | 12,607 | $ | 12,574 | |||||||
CSPCo
|
3,801 | 7,267 | 7,248 | ||||||||||
I&M
|
3,965 | 7,581 | 7,561 | ||||||||||
OPCo
|
4,640 | 8,871 | 8,847 | ||||||||||
PSO
|
16 | 1,785 | 1,385 | ||||||||||
SWEPCo
|
19 | 2,139 | 1,659 |
|
|
|
March 31, 2011
|
|||||||
|
|
|
Liabilities for
|
|
|
|
Additional
|
|||
|
|
|
Contracts with Cross
|
|
|
|
Settlement
|
|||
|
|
|
Default Provisions
|
|
|
|
Liability if Cross
|
|||
|
|
|
Prior to Contractual
|
|
Amount of Cash
|
|
Default Provision
|
|||
Company
|
|
Netting Arrangements
|
|
Collateral Posted
|
|
is Triggered
|
||||
|
|
|
(in thousands)
|
|||||||
APCo
|
|
$
|
70,073
|
|
$
|
4,091
|
|
$
|
26,341
|
|
CSPCo
|
|
|
40,116
|
|
|
2,342
|
|
|
15,080
|
|
I&M
|
|
|
41,130
|
|
|
2,401
|
|
|
15,463
|
|
OPCo
|
|
|
48,146
|
|
|
2,810
|
|
|
18,112
|
|
PSO
|
|
|
52
|
|
|
-
|
|
|
28
|
|
SWEPCo
|
|
|
65
|
|
|
-
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|||||||
|
|
|
Liabilities for
|
|
|
|
Additional
|
|||
|
|
|
Contracts with Cross
|
|
|
|
Settlement
|
|||
|
|
|
Default Provisions
|
|
|
|
Liability if Cross
|
|||
|
|
|
Prior to Contractual
|
|
Amount of Cash
|
|
Default Provision
|
|||
Company
|
|
Netting Arrangements
|
|
Collateral Posted
|
|
is Triggered
|
||||
|
|
|
(in thousands)
|
|||||||
APCo
|
|
$
|
76,810
|
|
$
|
6,637
|
|
$
|
23,748
|
|
CSPCo
|
|
|
44,277
|
|
|
3,826
|
|
|
13,689
|
|
I&M
|
|
|
46,188
|
|
|
3,991
|
|
|
14,280
|
|
OPCo
|
|
|
54,066
|
|
|
4,670
|
|
|
16,731
|
|
PSO
|
|
|
60
|
|
|
-
|
|
|
28
|
|
SWEPCo
|
|
|
75
|
|
|
-
|
|
|
37
|
Type of Fixed Income Security
|
||||||
United States
|
State and Local
|
|||||
Type of Input
|
Government
|
Corporate Debt
|
Government
|
|||
Benchmark Yields
|
X
|
X
|
X
|
|||
Broker Quotes
|
X
|
X
|
X
|
|||
Discount Margins
|
X
|
X
|
||||
Treasury Market Update
|
X
|
|||||
Base Spread
|
X
|
X
|
X
|
|||
Corporate Actions
|
X
|
|||||
Ratings Agency Updates
|
X
|
X
|
||||
Prepayment Schedule and History
|
X
|
|||||
Yield Adjustments
|
X
|
|
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Company
|
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
APCo
|
$ | 3,975,705 | $ | 4,247,353 | $ | 3,561,141 | $ | 3,878,557 | |||||||||
CSPCo
|
1,438,900 | 1,547,615 | 1,438,830 | 1,571,219 | |||||||||||||
I&M
|
1,999,103 | 2,143,355 | 2,004,226 | 2,169,520 | |||||||||||||
OPCo
|
2,614,651 | 2,798,115 | 2,729,522 | 2,945,280 | |||||||||||||
PSO
|
1,019,375 | 1,077,368 | 971,186 | 1,040,656 | |||||||||||||
SWEPCo
|
1,769,583 | 1,909,046 | 1,769,520 | 1,931,516 |
·
|
Acceptable investments (rated investment grade or above when purchased).
|
·
|
Maximum percentage invested in a specific type of investment.
|
·
|
Prohibition of investment in obligations of AEP or its affiliates.
|
·
|
Withdrawals permitted only for payment of decommissioning costs and trust expenses.
|
|
March 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||
|
Estimated
|
Gross
|
Other-Than-
|
Estimated
|
Gross
|
Other-Than-
|
||||||||||||||||||
|
Fair
|
Unrealized
|
Temporary
|
Fair
|
Unrealized
|
Temporary
|
||||||||||||||||||
|
Value
|
Gains
|
Impairments
|
Value
|
Gains
|
Impairments
|
||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||
Cash and Cash Equivalents
|
$ | 14,524 | $ | - | $ | - | $ | 20,039 | $ | - | $ | - | ||||||||||||
Fixed Income Securities:
|
||||||||||||||||||||||||
United States Government
|
472,913 | 17,432 | (1,236 | ) | 461,084 | 22,582 | (1,489 | ) | ||||||||||||||||
Corporate Debt
|
54,836 | 3,161 | (1,499 | ) | 59,463 | 3,716 | (1,905 | ) | ||||||||||||||||
State and Local Government
|
339,651 | 1,663 | 268 | 340,786 | (975 | ) | (340 | ) | ||||||||||||||||
Subtotal Fixed Income Securities
|
867,400 | 22,256 | (2,467 | ) | 861,333 | 25,323 | (3,734 | ) | ||||||||||||||||
Equity Securities - Domestic
|
676,611 | 226,445 | (113,418 | ) | 633,855 | 183,447 | (122,889 | ) | ||||||||||||||||
Spent Nuclear Fuel and
|
||||||||||||||||||||||||
Decommissioning Trusts
|
$ | 1,558,535 | $ | 248,701 | $ | (115,885 | ) | $ | 1,515,227 | $ | 208,770 | $ | (126,623 | ) |
|
Three Months Ended March 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
Proceeds From Investment Sales
|
$ | 287,761 | $ | 232,078 | ||||
Purchases of Investments
|
305,945 | 247,632 | ||||||
Gross Realized Gains on Investment Sales
|
5,013 | 5,328 | ||||||
Gross Realized Losses on Investment Sales
|
5,247 | 181 |
|
Fair Value
|
|||
|
of Debt Securities
|
|||
|
(in thousands)
|
|||
Within 1 year
|
$ | 77,765 | ||
1 year – 5 years
|
271,161 | |||
5 years – 10 years
|
268,243 | |||
After 10 years
|
250,231 | |||
Total
|
$ | 867,400 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
APCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,329 | $ | 279,128 | $ | 12,455 | $ | (217,825 | ) | $ | 75,087 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 3,643 | - | (2,696 | ) | 947 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 3,155 | 3,155 | |||||||||||||||
Total Risk Management Assets
|
$ | 1,329 | $ | 282,771 | $ | 12,455 | $ | (217,366 | ) | $ | 79,189 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,301 | $ | 261,618 | $ | 6,983 | $ | (234,514 | ) | $ | 35,388 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 3,393 | - | (2,696 | ) | 697 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 1,301 | $ | 265,011 | $ | 6,983 | $ | (237,210 | ) | $ | 36,085 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
APCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,686 | $ | 330,605 | $ | 13,791 | $ | (270,012 | ) | $ | 76,070 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,591 | - | (2,258 | ) | 333 | ||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 11,888 | - | - | 11,888 | |||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 3,371 | 3,371 | |||||||||||||||
Total Risk Management Assets
|
$ | 1,686 | $ | 345,084 | $ | 13,791 | $ | (268,899 | ) | $ | 91,662 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,653 | $ | 312,258 | $ | 8,660 | $ | (284,432 | ) | $ | 38,139 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,985 | - | (2,258 | ) | 727 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 1,653 | $ | 315,243 | $ | 8,660 | $ | (286,690 | ) | $ | 38,866 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
CSPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 761 | $ | 161,143 | $ | 7,131 | $ | (126,002 | ) | $ | 43,033 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,005 | - | (1,543 | ) | 462 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 1,806 | 1,806 | |||||||||||||||
Total Risk Management Assets
|
$ | 761 | $ | 163,148 | $ | 7,131 | $ | (125,739 | ) | $ | 45,301 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 745 | $ | 151,121 | $ | 3,997 | $ | (135,556 | ) | $ | 20,307 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,942 | - | (1,543 | ) | 399 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 745 | $ | 153,063 | $ | 3,997 | $ | (137,099 | ) | $ | 20,706 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
CSPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 972 | $ | 185,699 | $ | 7,950 | $ | (150,930 | ) | $ | 43,691 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,531 | - | (1,302 | ) | 229 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 1,943 | 1,943 | |||||||||||||||
Total Risk Management Assets
|
$ | 972 | $ | 187,230 | $ | 7,950 | $ | (150,289 | ) | $ | 45,863 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 953 | $ | 175,078 | $ | 4,975 | $ | (159,235 | ) | $ | 21,771 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,721 | - | (1,302 | ) | 419 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 953 | $ | 176,799 | $ | 4,975 | $ | (160,537 | ) | $ | 22,190 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
I&M
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 780 | $ | 188,676 | $ | 7,309 | $ | (140,757 | ) | $ | 56,008 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,081 | - | (1,582 | ) | 499 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 1,852 | 1,852 | |||||||||||||||
Total Risk Management Assets
|
780 | 190,757 | 7,309 | (140,487 | ) | 58,359 | ||||||||||||||
|
||||||||||||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||||||
Cash and Cash Equivalents (d)
|
- | 4,994 | - | 9,530 | 14,524 | |||||||||||||||
Fixed Income Securities:
|
||||||||||||||||||||
United States Government
|
- | 472,913 | - | - | 472,913 | |||||||||||||||
Corporate Debt
|
- | 54,836 | - | - | 54,836 | |||||||||||||||
State and Local Government
|
- | 339,651 | - | - | 339,651 | |||||||||||||||
Subtotal Fixed Income Securities
|
- | 867,400 | - | - | 867,400 | |||||||||||||||
Equity Securities - Domestic (e)
|
676,611 | - | - | - | 676,611 | |||||||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
676,611 | 872,394 | - | 9,530 | 1,558,535 | |||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 677,391 | $ | 1,063,151 | $ | 7,309 | $ | (130,957 | ) | $ | 1,616,894 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 763 | $ | 166,936 | $ | 4,100 | $ | (150,553 | ) | $ | 21,246 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,991 | - | (1,582 | ) | 409 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 763 | $ | 168,927 | $ | 4,100 | $ | (152,135 | ) | $ | 21,655 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
I&M
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,014 | $ | 209,031 | $ | 8,295 | $ | (161,531 | ) | $ | 56,809 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,533 | - | (1,358 | ) | 175 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 2,027 | 2,027 | |||||||||||||||
Total Risk Management Assets
|
1,014 | 210,564 | 8,295 | (160,862 | ) | 59,011 | ||||||||||||||
|
||||||||||||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||||||
Cash and Cash Equivalents (d)
|
- | 7,898 | - | 12,141 | 20,039 | |||||||||||||||
Fixed Income Securities:
|
||||||||||||||||||||
United States Government
|
- | 461,084 | - | - | 461,084 | |||||||||||||||
Corporate Debt
|
- | 59,463 | - | - | 59,463 | |||||||||||||||
State and Local Government
|
- | 340,786 | - | - | 340,786 | |||||||||||||||
Subtotal Fixed Income Securities
|
- | 861,333 | - | - | 861,333 | |||||||||||||||
Equity Securities - Domestic (e)
|
633,855 | - | - | - | 633,855 | |||||||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
633,855 | 869,231 | - | 12,141 | 1,515,227 | |||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 634,869 | $ | 1,079,795 | $ | 8,295 | $ | (148,721 | ) | $ | 1,574,238 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 994 | $ | 186,898 | $ | 5,187 | $ | (170,201 | ) | $ | 22,878 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,795 | - | (1,358 | ) | 437 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 994 | $ | 188,693 | $ | 5,187 | $ | (171,559 | ) | $ | 23,315 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
OPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Other Cash Deposits (c)
|
$ | 26 | $ | - | $ | - | $ | 22 | $ | 48 | ||||||||||
|
||||||||||||||||||||
Risk Management Assets
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
912 | 272,395 | 8,554 | (227,554 | ) | 54,307 | ||||||||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,538 | - | (1,851 | ) | 687 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 2,166 | 2,166 | |||||||||||||||
Total Risk Management Assets
|
912 | 274,933 | 8,554 | (227,239 | ) | 57,160 | ||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 938 | $ | 274,933 | $ | 8,554 | $ | (227,217 | ) | $ | 57,208 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 893 | $ | 260,433 | $ | 4,795 | $ | (239,020 | ) | $ | 27,101 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,330 | - | (1,851 | ) | 479 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 893 | $ | 262,763 | $ | 4,795 | $ | (240,871 | ) | $ | 27,580 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
OPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Other Cash Deposits (c)
|
$ | 26 | $ | - | $ | - | $ | - | $ | 26 | ||||||||||
|
||||||||||||||||||||
Risk Management Assets
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
1,186 | 314,560 | 9,709 | (269,216 | ) | 56,239 | ||||||||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,764 | - | (1,590 | ) | 174 | ||||||||||||||
Dedesignated Risk Management Contracts (b)
|
- | - | - | 2,372 | 2,372 | |||||||||||||||
Total Risk Management Assets
|
1,186 | 316,324 | 9,709 | (268,434 | ) | 58,785 | ||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 1,212 | $ | 316,324 | $ | 9,709 | $ | (268,434 | ) | $ | 58,811 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,163 | $ | 302,299 | $ | 6,101 | $ | (279,505 | ) | $ | 30,058 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,101 | - | (1,590 | ) | 511 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 1,163 | $ | 304,400 | $ | 6,101 | $ | (281,095 | ) | $ | 30,569 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
PSO
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1 | $ | 15,783 | $ | - | $ | (15,129 | ) | $ | 655 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 376 | - | - | 376 | |||||||||||||||
Total Risk Management Assets
|
$ | 1 | $ | 16,159 | $ | - | $ | (15,129 | ) | $ | 1,031 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1 | $ | 16,516 | $ | - | $ | (15,131 | ) | $ | 1,386 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
PSO
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | - | $ | 21,119 | $ | 1 | $ | (20,335 | ) | $ | 785 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 134 | - | - | 134 | |||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 13,558 | - | - | 13,558 | |||||||||||||||
Total Risk Management Assets
|
$ | - | $ | 34,811 | $ | 1 | $ | (20,335 | ) | $ | 14,477 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | - | $ | 21,498 | $ | - | $ | (20,379 | ) | $ | 1,119 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
SWEPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1 | $ | 28,968 | $ | - | $ | (27,927 | ) | $ | 1,042 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 347 | - | - | 347 | |||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 9 | - | - | 9 | |||||||||||||||
Total Risk Management Assets
|
$ | 1 | $ | 29,324 | $ | - | $ | (27,927 | ) | $ | 1,398 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1 | $ | 30,508 | $ | - | $ | (27,930 | ) | $ | 2,579 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 1 | - | - | 1 | |||||||||||||||
Total Risk Management Liabilities
|
$ | 1 | $ | 30,509 | $ | - | $ | (27,930 | ) | $ | 2,580 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
SWEPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | - | $ | 36,632 | $ | 2 | $ | (35,115 | ) | $ | 1,519 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 123 | - | - | 123 | |||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 5 | - | - | 5 | |||||||||||||||
Total Risk Management Assets
|
$ | - | $ | 36,760 | $ | 2 | $ | (35,115 | ) | $ | 1,647 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | - | $ | 39,592 | $ | - | $ | (35,187 | ) | $ | 4,405 |
(a)
|
Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”
|
(b)
|
Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.
|
(c)
|
Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 amounts primarily represent investments in money market funds.
|
(d)
|
Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.
|
(e)
|
Amounts represent publicly traded equity securities and equity-based mutual funds.
|
(f)
|
Substantially comprised of power contracts for APCo, CSPCo, I&M and OPCo and coal contracts for PSO and SWEPCo.
|
Three Months Ended March 31, 2011
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||
|
|
(in thousands)
|
|||||||||||||||||
Balance as of December 31, 2010
|
|
$
|
5,131
|
|
$
|
2,975
|
|
$
|
3,108
|
|
$
|
3,608
|
|
$
|
1
|
|
$
|
2
|
|
Realized Gain (Loss) Included in Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(or Changes in Net Assets) (a) (b)
|
|
|
(586)
|
|
|
(335)
|
|
|
(344)
|
|
|
(401)
|
|
|
-
|
|
|
-
|
Unrealized Gain (Loss) Included in Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (or Changes in Net Assets) Relating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Assets Still Held at the Reporting Date (a)
|
|
|
-
|
|
|
2,159
|
|
|
-
|
|
|
2,524
|
|
|
-
|
|
|
-
|
Realized and Unrealized Gains (Losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in Other Comprehensive Income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Purchases, Issuances and Settlements (c)
|
|
|
(1,333)
|
|
|
(763)
|
|
|
(783)
|
|
|
(916)
|
|
|
-
|
|
|
-
|
|
Transfers into Level 3 (d) (f)
|
|
|
95
|
|
|
55
|
|
|
57
|
|
|
67
|
|
|
-
|
|
|
-
|
|
Transfers out of Level 3 (e) (f)
|
|
|
(2,654)
|
|
|
(1,531)
|
|
|
(1,596)
|
|
|
(1,868)
|
|
|
-
|
|
|
-
|
|
Changes in Fair Value Allocated to Regulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jurisdictions (g)
|
|
|
4,819
|
|
|
574
|
|
|
2,767
|
|
|
745
|
|
|
(1)
|
|
|
(2)
|
Balance as of March 31, 2011
|
|
$
|
5,472
|
|
$
|
3,134
|
|
$
|
3,209
|
|
$
|
3,759
|
|
$
|
-
|
|
$
|
-
|
Three Months Ended March 31, 2010
|
|
APCo
|
|
CSPCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|||||||
|
|
(in thousands)
|
|||||||||||||||||
Balance as of December 31, 2009
|
|
$
|
9,428
|
|
$
|
4,776
|
|
$
|
4,816
|
|
$
|
5,569
|
|
$
|
2
|
|
$
|
3
|
|
Realized Gain (Loss) Included in Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(or Changes in Net Assets) (a) (b)
|
|
|
8,947
|
|
|
5,056
|
|
|
5,099
|
|
|
5,818
|
|
|
-
|
|
|
-
|
Unrealized Gain (Loss) Included in Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (or Changes in Net Assets) Relating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Assets Still Held at the Reporting Date (a)
|
|
|
-
|
|
|
6,122
|
|
|
-
|
|
|
6,987
|
|
|
-
|
|
|
-
|
Realized and Unrealized Gains (Losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in Other Comprehensive Income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Purchases, Issuances and Settlements (c)
|
|
|
(10,221)
|
|
|
(5,743)
|
|
|
(5,792)
|
|
|
(6,612)
|
|
|
-
|
|
|
-
|
|
Transfers into Level 3 (d) (f)
|
|
|
439
|
|
|
222
|
|
|
224
|
|
|
259
|
|
|
-
|
|
|
-
|
|
Transfers out of Level 3 (e) (f)
|
|
|
269
|
|
|
137
|
|
|
138
|
|
|
159
|
|
|
-
|
|
|
-
|
|
Changes in Fair Value Allocated to Regulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jurisdictions (g)
|
|
|
9,825
|
|
|
-
|
|
|
6,177
|
|
|
-
|
|
|
-
|
|
|
1
|
Balance as of March 31, 2010
|
|
$
|
18,687
|
|
$
|
10,570
|
|
$
|
10,662
|
|
$
|
12,180
|
|
$
|
2
|
|
$
|
4
|
(a)
|
Included in revenues on the Condensed Statements of Income.
|
(b)
|
Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
|
(c)
|
Represents the settlement of risk management commodity contracts for the reporting period.
|
(d)
|
Represents existing assets or liabilities that were previously categorized as Level 2.
|
(e)
|
Represents existing assets or liabilities that were previously categorized as Level 3.
|
(f)
|
Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
|
(g)
|
Relates to the net gains (losses) of those contracts that are not reflected on the Condensed Statements of Income. These net gains (losses) are recorded as regulatory assets/liabilities.
|
|
Net Reduction
|
Tax
|
|
|||||||
|
to Deferred
|
Regulatory
|
Decrease in
|
|||||||
Company
|
Tax Assets
|
Assets, Net
|
Net Income
|
|||||||
|
(in thousands)
|
|||||||||
APCo
|
$ | 9,397 | $ | 8,831 | $ | 566 | ||||
CSPCo
|
4,386 | 2,970 | 1,416 | |||||||
I&M
|
7,212 | 6,528 | 684 | |||||||
OPCo
|
8,385 | 4,020 | 4,365 | |||||||
PSO
|
3,172 | 3,172 | - | |||||||
SWEPCo
|
3,412 | 3,412 | - |
|
|
|
Principal
|
|
Interest
|
Due
|
|||
Company
|
Type of Debt
|
|
Amount
|
|
Rate
|
Date
|
|||
Issuances:
|
|
|
(in thousands)
|
|
(%)
|
|
|||
APCo
|
Senior Unsecured Notes
|
|
$
|
350,000
|
|
4.60
|
2021
|
||
APCo
|
Pollution Control Bonds
|
|
|
65,350
|
|
2.00
|
2012
|
||
APCo
|
Pollution Control Bonds
|
|
|
75,000
|
(a)
|
Variable
|
2036
|
||
APCo
|
Pollution Control Bonds
|
|
|
54,375
|
(a)
|
Variable
|
2042
|
||
APCo
|
Pollution Control Bonds
|
|
|
50,275
|
(a)
|
Variable
|
2036
|
||
APCo
|
Pollution Control Bonds
|
|
|
50,000
|
(a)
|
Variable
|
2042
|
||
I&M
|
Pollution Control Bonds
|
|
|
52,000
|
(a)
|
Variable
|
2021
|
||
I&M
|
Pollution Control Bonds
|
|
|
25,000
|
(a)
|
Variable
|
2019
|
||
OPCo
|
Pollution Control Bonds
|
|
|
50,000
|
(a)
|
Variable
|
2014
|
||
PSO
|
Senior Unsecured Notes
|
|
|
250,000
|
|
4.40
|
2021
|
(a)
|
These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year – Nonaffiliated on the balance sheets.
|
|
|
|
Principal
|
|
Interest
|
Due
|
|||
Company
|
Type of Debt
|
|
Amount Paid
|
|
Rate
|
Date
|
|||
Retirements and
|
|
|
(in thousands)
|
|
(%)
|
|
|||
Principal Payments:
|
|
|
|
|
|
|
|
||
APCo
|
Pollution Control Bonds
|
|
$
|
75,000
|
|
Variable
|
2036
|
||
APCo
|
Pollution Control Bonds
|
|
|
54,375
|
|
Variable
|
2042
|
||
APCo
|
Pollution Control Bonds
|
|
|
50,000
|
|
Variable
|
2042
|
||
APCo
|
Pollution Control Bonds
|
|
|
50,275
|
|
Variable
|
2036
|
||
APCo
|
Land Note
|
|
|
5
|
|
13.718
|
2026
|
||
I&M
|
Pollution Control Bonds
|
|
|
52,000
|
|
Variable
|
2021
|
||
I&M
|
Pollution Control Bonds
|
|
|
25,000
|
|
Variable
|
2019
|
||
I&M
|
Notes Payable
|
|
|
5,354
|
|
Variable
|
2015
|
||
OPCo
|
Pollution Control Bonds
|
|
|
65,000
|
|
Variable
|
2036
|
||
OPCo
|
Pollution Control Bonds
|
|
|
50,000
|
|
Variable
|
2014
|
||
OPCo
|
Pollution Control Bonds
|
|
|
50,000
|
|
Variable
|
2014
|
||
PSO
|
Senior Unsecured Notes
|
|
|
200,000
|
|
6.00
|
2032
|
|
Maximum
|
Maximum
|
Average
|
Average
|
Loans
|
Authorized
|
||||||||||||||||||
|
Borrowings
|
Loans
|
Borrowings
|
Loans
|
to Utility
|
Short-term
|
||||||||||||||||||
|
from Utility
|
to Utility
|
from Utility
|
to Utility
|
Money Pool as of
|
Borrowing
|
||||||||||||||||||
Company
|
Money Pool
|
Money Pool
|
Money Pool
|
Money Pool
|
March 31, 2011
|
Limit
|
||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||
APCo
|
$ | 195,945 | $ | 393,811 | $ | 102,608 | $ | 155,100 | $ | 383,537 | $ | 600,000 | ||||||||||||
CSPCo
|
17,256 | 107,040 | 10,098 | 61,695 | 63,706 | 350,000 | ||||||||||||||||||
I&M
|
52,098 | 89,276 | 15,525 | 36,839 | 56,813 | 500,000 | ||||||||||||||||||
OPCo
|
51,169 | 237,196 | 28,199 | 131,959 | 82,684 | 600,000 | ||||||||||||||||||
PSO
|
96,034 | 255,611 | 49,522 | 144,127 | 3,093 | 300,000 | ||||||||||||||||||
SWEPCo
|
20,596 | 105,184 | 8,647 | 48,281 | 9,367 | 350,000 |
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Maximum Interest Rate
|
0.56 | % | 0.34 | % | ||||
Minimum Interest Rate
|
0.06 | % | 0.09 | % |
|
Average Interest Rate
|
Average Interest Rate
|
||||||||||||||
|
for Funds Borrowed
|
for Funds Loaned
|
||||||||||||||
|
from Utility Money Pool for
|
to Utility Money Pool for
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
Company
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
|
|
|
|
||||||||||||
APCo
|
0.38 | % | 0.16 | % | 0.17 | % | - | % | ||||||||
CSPCo
|
0.52 | % | 0.18 | % | 0.28 | % | 0.14 | % | ||||||||
I&M
|
0.48 | % | - | % | 0.25 | % | 0.16 | % | ||||||||
OPCo
|
0.41 | % | - | % | 0.26 | % | 0.16 | % | ||||||||
PSO
|
0.47 | % | 0.16 | % | 0.19 | % | 0.16 | % | ||||||||
SWEPCo
|
0.36 | % | 0.19 | % | 0.32 | % | 0.13 | % |
Short-term Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Registrant Subsidiaries’ outstanding short-term debt was as follows:
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011
|
|
December 31, 2010
|
||||||||
|
|
|
|
|
|
Outstanding
|
|
Interest
|
|
Outstanding
|
|
Interest
|
||||
|
Company
|
|
Type of Debt
|
Amount
|
Rate (b)
|
|
Amount
|
Rate (b)
|
||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
(in thousands)
|
|
|
|
||
|
SWEPCo
|
|
Line of Credit – Sabine (a)
|
|
$
|
-
|
|
-
|
%
|
|
$
|
6,217
|
|
2.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Sabine Mining Company is a consolidated variable interest entity.
|
||||||||||||||
|
(b)
|
Weighted average rate.
|
|
March 31, 2011
|
||||||||||||
|
|
Reacquired and
|
Bilateral Letters
|
||||||||||
Company
|
Remarketed
|
Held in Trust
|
of Credit Issued
|
||||||||||
|
(in thousands)
|
||||||||||||
APCo
|
$ | 229,650 | $ | - | $ | 232,293 | |||||||
I&M
|
77,000 | - | 77,886 | ||||||||||
OPCo
|
50,000 | 115,000 | 50,575 |
|
March 31,
|
December 31,
|
||||||
Company
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
APCo
|
$ | 135,454 | $ | 145,515 | ||||
CSPCo
|
169,436 | 175,997 | ||||||
I&M
|
129,304 | 123,366 | ||||||
OPCo
|
183,904 | 168,701 | ||||||
PSO
|
104,740 | 121,679 | ||||||
SWEPCo
|
116,594 | 135,092 |
|
Three Months Ended March 31,
|
|||||||
Company
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
APCo
|
$ | 2,575 | $ | 1,881 | ||||
CSPCo
|
2,332 | 2,908 | ||||||
I&M
|
1,627 | 1,787 | ||||||
OPCo
|
1,703 | 2,700 | ||||||
PSO
|
1,234 | 1,384 | ||||||
SWEPCo
|
1,100 | 1,671 |
|
Three Months Ended March 31,
|
|||||||
Company
|
2011
|
2010
|
||||||
|
(in thousands)
|
|||||||
APCo
|
$ | 366,209 | $ | 441,711 | ||||
CSPCo
|
406,646 | 424,685 | ||||||
I&M
|
351,021 | 339,208 | ||||||
OPCo
|
504,392 | 441,510 | ||||||
PSO
|
268,569 | 214,647 | ||||||
SWEPCo
|
314,124 | 318,959 |
Company
|
Total Cost Incurred
|
|||
|
(in thousands)
|
|||
APCo
|
$ | 56,925 | ||
CSPCo
|
32,292 | |||
I&M
|
45,036 | |||
OPCo
|
53,108 | |||
PSO
|
24,005 | |||
SWEPCo
|
29,662 |
|
Balance at
|
|
|
|
Balance at
|
|||||||||||||||
Company
|
December 31, 2010
|
Incurred
|
Settled
|
Adjustments
|
March 31, 2011
|
|||||||||||||||
|
(in thousands)
|
|||||||||||||||||||
APCo
|
$ | 3,726 | $ | - | $ | (1,946 | ) | $ | (154 | ) | $ | 1,626 | ||||||||
CSPCo
|
1,454 | - | (1,219 | ) | (13 | ) | 222 | |||||||||||||
I&M
|
2,198 | - | (1,421 | ) | (98 | ) | 679 | |||||||||||||
OPCo
|
2,919 | - | (1,772 | ) | (91 | ) | 1,056 | |||||||||||||
PSO
|
1,526 | - | (965 | ) | (48 | ) | 513 | |||||||||||||
SWEPCo
|
1,753 | - | (1,089 | ) | (45 | ) | 619 |
|
2012 to 2020
|
||||||||
|
Estimated Environmental Investment
|
||||||||
Company
|
Low
|
High
|
|||||||
|
(in millions)
|
||||||||
APCo
|
$ | 1,063 | $ | 1,906 | |||||
CSPCo
|
402 | 569 | |||||||
I&M
|
616 | 1,459 | |||||||
OPCo
|
1,250 | 2,368 | |||||||
PSO
|
27 | 939 | |||||||
SWEPCo
|
952 | 1,327 |
|
|
|
DHLC
|
|
CCPC
|
|
Conner Run
|
|||
Number of Citations for Violations of Mandatory Health or
|
|
|
|
|
|
|
|
|
|
|
|
Safety Standards under 104 *
|
|
|
-
|
|
|
-
|
|
|
-
|
Number of Orders Issued under 104(b) *
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Number of Citations and Orders for Unwarrantable Failure
|
|
|
|
|
|
|
|
|
|
|
|
to Comply with Mandatory Health or Safety Standards under 104(d) *
|
|
|
-
|
|
|
-
|
|
|
-
|
Number of Flagrant Violations under 110(b)(2) *
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Number of Imminent Danger Orders Issued under 107(a) *
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total Dollar Value of Proposed Assessments
|
|
$
|
2,144
|
|
$
|
-
|
|
$
|
-
|
|
Number of Mining-related Fatalities
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
* References to sections under the Mine Act
|
|
|
|
|
|
|
|
|
|
MTM Risk Management Contract Net Assets (Liabilities)
|
||||
Three Months Ended March 31, 2011
|
||||
(in thousands)
|
||||
|
|
|||
APCo
|
|
|||
|
|
|||
Total MTM Risk Management Contract Net Assets at December 31, 2010
|
$ | 26,882 | ||
(Gain) Loss from Contracts Realized/Settled During the Period and Entered in a Prior Period
|
(6,740 | ) | ||
Fair Value of New Contracts at Inception When Entered During the Period (a)
|
- | |||
Net Option Premiums Paid/(Received) for Unexercised or Unexpired Option Contracts Entered During the Period
|
(23 | ) | ||
Changes in Fair Value Due to Market Fluctuations During the Period (b)
|
(202 | ) | ||
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
6,248 | |||
Total MTM Risk Management Contract Net Assets
|
26,165 | |||
Cash Flow Hedge Contracts
|
250 | |||
Collateral Deposits
|
16,689 | |||
Total MTM Derivative Contract Net Assets at March 31, 2011
|
$ | 43,104 |
|
||||
OPCo
|
||||
|
||||
Total MTM Risk Management Contract Net Assets at December 31, 2010
|
$ | 18,264 | ||
(Gain) Loss from Contracts Realized/Settled During the Period and Entered in a Prior Period
|
(4,665 | ) | ||
Fair Value of New Contracts at Inception When Entered During the Period (a)
|
968 | |||
Net Option Premiums Paid/(Received) for Unexercised or Unexpired Option Contracts Entered During the Period
|
(75 | ) | ||
Changes in Fair Value Due to Market Fluctuations During the Period (b)
|
2,672 | |||
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
742 | |||
Total MTM Risk Management Contract Net Assets
|
17,906 | |||
Cash Flow Hedge Contracts
|
208 | |||
Collateral Deposits
|
11,466 | |||
Total MTM Derivative Contract Net Assets at March 31, 2011
|
$ | 29,580 | ||
|
||||
PSO
|
||||
|
||||
Total MTM Risk Management Contract Net Assets (Liabilities) at December 31, 2010
|
$ | (378 | ) | |
(Gain) Loss from Contracts Realized/Settled During the Period and Entered in a Prior Period
|
134 | |||
Fair Value of New Contracts at Inception When Entered During the Period (a)
|
- | |||
Net Option Premiums Paid/(Received) for Unexercised or Unexpired Option Contracts Entered During the Period
|
(12 | ) | ||
Changes in Fair Value Due to Market Fluctuations During the Period (b)
|
48 | |||
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
(525 | ) | ||
Total MTM Risk Management Contract Net Assets (Liabilities)
|
(733 | ) | ||
Cash Flow Hedge Contracts
|
376 | |||
Collateral Deposits
|
2 | |||
Total MTM Derivative Contract Net Assets (Liabilities) at March 31, 2011
|
$ | (355 | ) | |
|
||||
SWEPCo
|
||||
|
||||
Total MTM Risk Management Contract Net Assets (Liabilities) at December 31, 2010
|
$ | (2,958 | ) | |
(Gain) Loss from Contracts Realized/Settled During the Period and Entered in a Prior Period
|
1,046 | |||
Fair Value of New Contracts at Inception When Entered During the Period (a)
|
- | |||
Net Option Premiums Paid/(Received) for Unexercised or Unexpired Option Contracts Entered During the Period
|
(21 | ) | ||
Changes in Fair Value Due to Market Fluctuations During the Period (b)
|
88 | |||
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
305 | |||
Total MTM Risk Management Contract Net Assets (Liabilities)
|
(1,540 | ) | ||
Cash Flow Hedge Contracts
|
355 | |||
Collateral Deposits
|
3 | |||
Total MTM Derivative Contract Net Assets (Liabilities) at March 31, 2011
|
$ | (1,182 | ) |
(a)
|
Reflects fair value on primarily long-term structured contracts which are typically with customers that seek fixed pricing to limit their risk against fluctuating energy prices. The contract prices are valued against market curves associated with the delivery location and delivery term. A significant portion of the total volumetric position has been economically hedged.
|
(b)
|
Market fluctuations are attributable to various factors such as supply/demand, weather, etc.
|
(c)
|
Relates to the net gains (losses) of those contracts that are not reflected on the Condensed Statements of Income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
Maturity and Source of Fair Value of MTM
|
||||||||||||
Risk Management Contract Net Assets (Liabilities)
|
||||||||||||
March 31, 2011
|
||||||||||||
|
||||||||||||
|
|
Remainder
|
|
|
|
|
|
|
|
|
|
|
APCo
|
2011
|
|
2012-2014
|
|
2015+
|
|
Total
|
|||||
|
|
(in thousands)
|
||||||||||
Level 1 (a)
|
$
|
27
|
|
$
|
1
|
|
$
|
-
|
|
$
|
28
|
|
Level 2 (b)
|
|
1,060
|
|
|
14,898
|
|
|
1,552
|
|
|
17,510
|
|
Level 3 (c)
|
|
1,158
|
|
|
4,070
|
|
|
244
|
|
|
5,472
|
|
Total
|
|
2,245
|
|
|
18,969
|
|
|
1,796
|
|
|
23,010
|
|
Dedesignated Risk Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts (d)
|
|
1,546
|
|
|
1,609
|
|
|
-
|
|
|
3,155
|
Total MTM Risk Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Net Assets
|
$
|
3,791
|
|
$
|
20,578
|
|
$
|
1,796
|
|
$
|
26,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remainder
|
|
|
|
|
|
|
|
|
|
|
OPCo
|
2011
|
|
2012-2014
|
|
2015+
|
|
Total
|
|||||
|
|
(in thousands)
|
||||||||||
Level 1 (a)
|
$
|
18
|
|
$
|
1
|
|
$
|
-
|
|
$
|
19
|
|
Level 2 (b)
|
|
372
|
|
|
10,524
|
|
|
1,066
|
|
|
11,962
|
|
Level 3 (c)
|
|
797
|
|
|
2,795
|
|
|
167
|
|
|
3,759
|
|
Total
|
|
1,187
|
|
|
13,320
|
|
|
1,233
|
|
|
15,740
|
|
Dedesignated Risk Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts (d)
|
|
1,061
|
|
|
1,105
|
|
|
-
|
|
|
2,166
|
Total MTM Risk Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Net Assets
|
$
|
2,248
|
|
$
|
14,425
|
|
$
|
1,233
|
|
$
|
17,906
|
|
|
|
Remainder
|
|
|
|
|
|
|
|
|
PSO
|
2011
|
|
2012-2014
|
|
Total
|
||||
|
|
|
(in thousands)
|
|||||||
|
Level 1 (a)
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
Level 2 (b)
|
|
(781)
|
|
|
48
|
|
|
(733)
|
|
|
Level 3 (c)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Total MTM Risk Management
|
|
|
|
|
|
|
|
|
|
|
|
Contract Net Assets (Liabilities)
|
$
|
(781)
|
|
$
|
48
|
|
$
|
(733)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remainder
|
|
|
|
|
|
|
|
|
SWEPCo
|
2011
|
|
2012-2014
|
|
Total
|
||||
|
|
|
(in thousands)
|
|||||||
|
Level 1 (a)
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
Level 2 (b)
|
|
(1,635)
|
|
|
95
|
|
|
(1,540)
|
|
|
Level 3 (c)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Total MTM Risk Management
|
|
|
|
|
|
|
|
|
|
|
|
Contract Net Assets (Liabilities)
|
$
|
(1,635)
|
|
$
|
95
|
|
$
|
(1,540)
|
(a)
|
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 inputs primarily consist of exchange traded contracts that exhibit sufficient frequency and volume to provide pricing information on an ongoing basis.
|
|||||||||
(b)
|
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs primarily consist of OTC broker quotes in moderately active or less active markets, exchange traded contracts where there was not sufficient market activity to warrant inclusion in Level 1 and OTC broker quotes that are corroborated by the same or similar transactions that have occurred in the market.
|
|||||||||
(c)
|
Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that the observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 inputs primarily consist of unobservable market data or are valued based on models and/or assumptions.
|
|||||||||
(d)
|
Dedesignated Risk Management Contracts are contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This will be amortized into Revenues over the remaining life of the contracts.
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||||||||
Company
|
End
|
High
|
Average
|
Low
|
End
|
High
|
Average
|
Low
|
|||||||||||||||||||||||||
(in thousands)
|
(in thousands)
|
||||||||||||||||||||||||||||||||
APCo
|
$ | 101 | $ | 231 | $ | 120 | $ | 67 | $ | 124 | $ | 659 | $ | 193 | $ | 71 | |||||||||||||||||
OPCo
|
90 | 221 | 120 | 64 | 100 | 545 | 161 | 54 | |||||||||||||||||||||||||
PSO
|
4 | 32 | 15 | 4 | 3 | 70 | 15 | 1 | |||||||||||||||||||||||||
SWEPCo
|
8 | 46 | 23 | 7 | 6 | 93 | 21 | 2 |
March 31,
|
December 31,
|
|||||||
Company
|
2011
|
2010
|
||||||
(in thousands)
|
||||||||
APCo
|
$ | 634 | $ | 1,165 | ||||
CSPCo
|
176 | 178 | ||||||
I&M
|
444 | 274 | ||||||
OPCo
|
738 | 926 | ||||||
PSO
|
36 | 658 | ||||||
SWEPCo
|
920 | 1,027 |
All of the investment in and expenses related to the Turk Plant may not be fully recovered. – Affecting AEP and SWEPCo
|
·
|
The validity of the air permit issued by the Arkansas Pollution Control and Ecology Commission in connection with the operation of the Turk Plant;
|
·
|
The validity of the wetlands permit issued by the U.S. Army Corps of Engineers in connection with the construction and operation of the Turk Plant;
|
·
|
Whether SWEPCo is required to obtain APSC approval to construct the Turk Plant without pursuing authority to seek recovery of the originally approved 88 MW portion of Turk Plant costs in Arkansas retail rates;
|
·
|
The validity of PUCT approval of the Texas jurisdictional cost recovery and uncertainty regarding the caps on recovery included in the approval; and
|
·
|
A complaint filed in the Federal District Court for the Western District of Arkansas against SWEPCo, the U.S. Army Corps of Engineers, the U.S. Department of Interior and the U.S. Fish and Wildlife Service seeking a temporary restraining order and preliminary injunction to stop construction of the Turk Plant asserting claims of violations of various federal and state laws.
|
Request for rate and other recovery in Ohio for distribution service may not be approved in its entirety. – Affecting AEP, CSPCo and OPCo
|
Request for rate recovery in Ohio for generation service may not be approved in its entirety. – Affecting AEP, CSPCo and OPCo
|
Period
|
Total Number
of Shares
Purchased
|
Average Price
Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||||||
01/01/11 – 01/31/11
|
102
|
(a)
|
$
|
75.00
|
-
|
$
|
-
|
|||||||
02/01/11 – 02/28/11
|
-
|
-
|
-
|
-
|
||||||||||
03/01/11 – 03/31/11
|
-
|
-
|
-
|
-
|
(a)
|
APCo purchased 102 shares of its 4.50% cumulative preferred stock in a privately-negotiated transaction outside of an announced program.
|