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
|
||
1-3570
|
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 the registrants have submitted electronically and posted on their corporate websites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).
|
|||||
Yes
|
X
|
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, 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
|
Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric 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 26, 2012
|
|||
American Electric Power Company, Inc.
|
484,321,794
|
||
($6.50 par value)
|
|||
Appalachian Power Company
|
13,499,500
|
||
(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
Number
|
|||||
Glossary of Terms
|
i | ||||
Forward-Looking Information
|
iv | ||||
Part I. FINANCIAL INFORMATION
|
|||||
Items 1, 2 and 3 - Financial Statements, Management’s Financial Discussion and Analysis and Quantitative and Qualitative Disclosures About Market Risk: | |||||
American Electric Power Company, Inc. and Subsidiary Companies:
|
|||||
Management’s Financial Discussion and Analysis
|
1
|
||||
Condensed Consolidated Financial Statements
|
24
|
||||
Index of Condensed Notes to Condensed Consolidated Financial Statements
|
30
|
||||
Appalachian Power Company and Subsidiaries:
|
|||||
Management’s Narrative Financial Discussion and Analysis
|
70 | ||||
Condensed Consolidated Financial Statements
|
74
|
||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
80
|
||||
Indiana Michigan Power Company and Subsidiaries:
|
|||||
Management’s Narrative Financial Discussion and Analysis
|
82
|
||||
Condensed Consolidated Financial Statements
|
87
|
||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
93
|
||||
Ohio Power Company Consolidated:
|
|||||
Management’s Narrative Financial Discussion and Analysis
|
95
|
||||
Condensed Consolidated Financial Statements
|
100
|
||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
106 | ||||
Public Service Company of Oklahoma:
|
|||||
Management’s Narrative Financial Discussion and Analysis
|
108
|
||||
Condensed Financial Statements
|
110
|
||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
116 | ||||
Southwestern Electric Power Company Consolidated:
|
|||||
Management’s Narrative Financial Discussion and Analysis
|
118
|
||||
Condensed Consolidated Financial Statements
|
121
|
||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
127 | ||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
128
|
|||||||||
Combined Management’s Narrative Discussion and Analysis of Registrant Subsidiaries
|
175 | |||||||||
Item 4. Controls and Procedures
|
180 |
Part II. OTHER INFORMATION
|
||||||||||
Item 1.
|
Legal Proceedings
|
181
|
||||||||
Item 1A.
|
Risk Factors
|
181
|
||||||||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
183 | ||||||||
Item 4.
|
Mine Safety Disclosures
|
183
|
||||||||
Item 5.
|
Other Information
|
183 | ||||||||
Item 6.
|
Exhibits:
|
183 | ||||||||
Exhibit 10
|
||||||||||
Exhibit 12
|
||||||||||
Exhibit 31(a)
|
||||||||||
Exhibit 31(b)
|
||||||||||
Exhibit 32(a)
|
||||||||||
Exhibit 32(b)
|
||||||||||
Exhibit 95
|
||||||||||
Exhibit 101.INS
|
||||||||||
Exhibit 101.SCH
|
||||||||||
Exhibit 101.CAL
|
||||||||||
Exhibit 101.DEF
|
||||||||||
Exhibit 101.LAB
|
||||||||||
Exhibit 101.PRE
|
||||||||||
SIGNATURE
|
184
|
This combined Form 10-Q is separately filed by American Electric Power Company, Inc., Appalachian 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., a utility holding company.
|
|
AEP Consolidated
|
AEP and its majority owned consolidated subsidiaries and consolidated affiliates.
|
|
AEP Credit
|
AEP Credit, Inc., a subsidiary of AEP which securitizes accounts receivable and accrued utility revenues for affiliated electric utility companies.
|
|
AEP East companies
|
APCo, I&M, KPCo and OPCo.
|
|
AEP 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, an AEP 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.
|
|
BlueStar
|
BlueStar Energy Holdings, Inc., a wholly-owned retail electric supplier for customers in Ohio, Illinois and other deregulated electricity markets throughout the United States.
|
|
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, a former AEP electric utility subsidiary that was merged into OPCo effective December 31, 2011.
|
|
DCC Fuel
|
DCC Fuel LLC, DCC Fuel II LLC, DCC Fuel III LLC and DCC Fuel IV 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 regional transmission organization.
|
|
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 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.
|
Term
|
Meaning
|
|
I&M
|
Indiana Michigan Power Company, an AEP electric utility subsidiary.
|
|
IGCC
|
Integrated Gasification Combined Cycle, technology that turns coal into a cleaner-burning gas.
|
|
Interconnection Agreement
|
An agreement by and among APCo, 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.
|
|
KPCo
|
Kentucky Power Company, an AEP electric utility subsidiary.
|
|
KPSC
|
Kentucky Public Service Commission.
|
|
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 insures domestic and international nuclear utilities for the costs associated with interruptions, damages, decontaminations and related nuclear risks.
|
|
NOx
|
Nitrogen oxide.
|
|
Nonutility Money Pool
|
Centralized funding mechanism AEP uses to meet the short term cash requirements of certain nonutility subsidiaries.
|
|
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.
|
|
PJM
|
Pennsylvania – New Jersey – Maryland regional transmission organization.
|
|
PM
|
Particulate Matter.
|
|
POLR
|
Provider of Last Resort revenues.
|
|
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, 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, responsible for moving electricity over large interstate areas.
|
|
Sabine
|
Sabine Mining Company, a lignite mining company that is a consolidated variable interest entity for AEP and SWEPCo.
|
|
SEC
|
U.S. Securities and Exchange Commission.
|
|
SEET
|
Significantly Excessive Earnings Test.
|
|
SIA
|
System Integration Agreement, effective June 15, 2000, provides contractual basis for coordinated planning, operation and maintenance of the power supply sources of the combined AEP.
|
|
SNF
|
Spent Nuclear Fuel.
|
|
SO2
|
Sulfur dioxide.
|
|
SPP
|
Southwest Power Pool regional transmission organization.
|
|
SWEPCo
|
Southwestern Electric Power Company, an AEP electric utility subsidiary.
|
Term
|
Meaning
|
|
TCC
|
AEP Texas Central Company, an AEP electric utility subsidiary.
|
|
TNC
|
AEP Texas North Company, an AEP electric utility subsidiary.
|
|
Transition Funding
|
AEP Texas Central Transition Funding I LLC, AEP Texas Central Transition Funding II LLC and AEP Texas Central Transition Funding III 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.
|
|
Turk Plant
|
John W. Turk, Jr. Plant, a 600 MW coal-fired plant under construction in Arkansas that is 73% owned by SWEPCo.
|
|
Utility Money Pool
|
Centralized funding mechanism AEP uses to meet the short term cash requirements of certain utility subsidiaries.
|
|
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 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, and transmission lines and 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 nuclear generation, 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 and related assets.
|
·
|
A reduction in the federal statutory tax rate.
|
·
|
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 our debt.
|
·
|
Volatility and changes in markets for electricity, natural gas and other energy-related commodities.
|
·
|
Changes in utility regulation, including the implementation of ESPs and the transition to market and expected legal separation for generation in Ohio and the allocation of costs within regional transmission organizations, including PJM and SPP.
|
·
|
Accounting pronouncements periodically issued by accounting standard-setting bodies.
|
·
|
The impact of volatility in the capital markets on the value of the investments held by our pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact on future funding requirements.
|
·
|
Prices and demand for power that we generate and sell at wholesale.
|
·
|
Changes in technology, particularly with respect to new, developing or alternative sources of generation.
|
·
|
Our ability to recover through rates or market prices any remaining unrecovered investment in generating units that may be retired before the end of their previously projected useful lives.
|
·
|
Our ability to successfully manage negotiations with stakeholders and obtain regulatory approval to terminate or amend the Interconnection Agreement.
|
·
|
Evolving public perception of the risks associated with fuels used before, during and after the generation of electricity, including nuclear fuel.
|
·
|
Other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, cyber security threats and other catastrophic events.
|
The forward looking statements of AEP and its Registrant Subsidiaries speak only as of the date of this report or as of the date they are made. AEP and its Registrant Subsidiaries expressly disclaim any obligation to update any forward-looking information. For a more detailed discussion of these factors, see “Risk Factors” in the 2011 Annual Report and in Part II of this report.
|
Proposed June 2012 – May 2015 Ohio ESP
|
|
|
Generating
|
||
Company
|
Plant Name and Unit
|
Capacity
|
||
|
|
(in MWs)
|
||
APCo
|
Clinch River Plant, Unit 3
|
235 | ||
APCo
|
Glen Lyn Plant
|
335 | ||
APCo
|
Kanawha River Plant
|
400 | ||
APCo/OPCo
|
Philip Sporn Plant, Units 1-4
|
600 | ||
I&M
|
Tanners Creek Plant, Units 1-3
|
495 | ||
KPCo
|
Big Sandy Plant, Unit 1
|
278 | ||
OPCo
|
Conesville Plant, Unit 3
|
165 | ||
OPCo
|
Kammer Plant
|
630 | ||
OPCo
|
Muskingum River Plant, Units 1-4
|
840 | ||
OPCo
|
Picway Plant
|
100 | ||
SWEPCo
|
Welsh Plant, Unit 2
|
528 | ||
Total
|
|
4,606 |
·
|
Generation of electricity for sale to U.S. retail and wholesale customers.
|
|
·
|
Transmission and distribution of electricity through assets owned and operated by our ten utility operating companies.
|
·
|
Development, construction and operation of transmission facilities through investments in our wholly-owned transmission subsidiaries that were established in 2009 and our transmission joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.
|
|
·
|
In April 2012, AEP and Great Plains Energy (Great Plains) formed Transource Energy LLC (Transource). AEP and Great Plains own 86.5% and 13.5% of Transource, respectively. Transource will initially pursue transmission projects in PJM, SPP and MISO.
|
·
|
Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.
|
·
|
Nonregulated generation in ERCOT.
|
|
·
|
Marketing, risk management and retail activities in ERCOT, PJM and MISO.
|
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Utility Operations
|
$ | 384 | $ | 374 | ||||
Transmission Operations
|
9 | 4 | ||||||
AEP River Operations
|
9 | 7 | ||||||
Generation and Marketing
|
(1 | ) | 1 | |||||
All Other (a)
|
(11 | ) | (31 | ) | ||||
Net Income
|
$ | 390 | $ | 355 |
(a)
|
While not considered a reportable 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 were financial derivatives which settled and expired in the fourth quarter of 2011.
|
|
·
|
Revenue sharing related to the Plaquemine Cogeneration Facility which ended in the fourth quarter of 2011.
|
·
|
A decrease in other operation and maintenance expenses as a result of reduced spending.
|
·
|
The first quarter 2012 reversal of an obligation to contribute to Partnership with Ohio and Ohio Growth Fund as a result of the PUCO’s February 2012 rejection of OPCo’s modified stipulation.
|
·
|
Successful rate proceedings in our various jurisdictions.
|
·
|
A first quarter 2011 settlement of litigation with BOA and Enron.
|
·
|
An overall increase in net income from our Transmission Operations segment due to increased investments by ETT and our wholly-owned transmission subsidiaries.
|
·
|
A decrease in weather-related usage.
|
·
|
The loss of retail customers in Ohio to various competitive retail electric service providers.
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Revenues
|
$ | 3,385 | $ | 3,524 | ||||
Fuel and Purchased Power
|
1,269 | 1,297 | ||||||
Gross Margin
|
2,116 | 2,227 | ||||||
Other Operation and Maintenance
|
755 | 850 | ||||||
Depreciation and Amortization
|
412 | 393 | ||||||
Taxes Other Than Income Taxes
|
211 | 209 | ||||||
Operating Income
|
738 | 775 | ||||||
Interest and Investment Income
|
1 | 2 | ||||||
Carrying Costs Income
|
20 | 15 | ||||||
Allowance for Equity Funds Used During Construction
|
20 | 20 | ||||||
Interest Expense
|
(217 | ) | (232 | ) | ||||
Income Before Income Tax Expense and Equity Earnings
|
562 | 580 | ||||||
Equity Earnings of Unconsolidated Subsidiaries
|
1 | 1 | ||||||
Income Tax Expense
|
179 | 207 | ||||||
Net Income
|
$ | 384 | $ | 374 |
Summary of KWH Energy Sales for Utility Operations
|
||||||||
|
||||||||
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions of KWHs)
|
|||||||
Retail:
|
|
|
||||||
Residential
|
14,799 | 16,949 | ||||||
Commercial
|
11,265 | 11,646 | ||||||
Industrial
|
14,647 | 14,329 | ||||||
Miscellaneous
|
721 | 723 | ||||||
Total Retail (a)
|
41,432 | 43,647 | ||||||
|
||||||||
Wholesale
|
8,913 | 9,151 | ||||||
|
||||||||
Total KWHs
|
50,345 | 52,798 | ||||||
|
||||||||
(a) Includes energy delivered to customers served by TCC and TNC.
|
Summary of Heating and Cooling Degree Days for Utility Operations
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
|
2012
|
|
2011
|
||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Eastern Region
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,261
|
|
|
1,854
|
|
Normal - Heating (b)
|
|
1,751
|
|
|
1,739
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
28
|
|
|
3
|
|
Normal - Cooling (b)
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
|
Western Region
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
347
|
|
|
692
|
|
Normal - Heating (b)
|
|
581
|
|
|
579
|
|
|
|
|
|
|
|
|
Actual - Cooling (d)
|
|
133
|
|
|
109
|
|
Normal - Cooling (b)
|
|
60
|
|
|
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.
|
Reconciliation of First Quarter of 2011 to First Quarter of 2012
|
|||||||
Net Income from Utility Operations
|
|||||||
(in millions)
|
|||||||
|
|
|
|
|
|
|
|
First Quarter of 2011
|
|
|
|
|
$
|
374
|
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
|
|
Retail Margins
|
|
|
|
|
|
(98)
|
|
Off-system Sales
|
|
|
|
|
|
(2)
|
|
Transmission Revenues
|
|
|
|
|
|
13
|
|
Other Revenues
|
|
|
|
|
|
(24)
|
|
Total Change in Gross Margin
|
|
|
|
|
|
(111)
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
|
|
Other Operation and Maintenance
|
|
|
|
|
|
95
|
|
Depreciation and Amortization
|
|
|
|
|
|
(19)
|
|
Taxes Other Than Income Taxes
|
|
|
|
|
|
(2)
|
|
Interest and Investment Income
|
|
|
|
|
|
(1)
|
|
Carrying Costs Income
|
|
|
|
|
|
5
|
|
Interest Expense
|
|
|
|
|
|
15
|
|
Total Change in Expenses and Other
|
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
First Quarter of 2012
|
|
|
|
|
$
|
384
|
·
|
Retail Margins decreased $98 million primarily due to the following:
|
||
·
|
An $87 million decrease in weather-related usage primarily due to 32% and 50% decreases in heating degree days in our eastern and western service territories, respectively.
|
||
·
|
A $54 million decrease attributable to Ohio customers switching to alternative competitive retail electric service (CRES) providers.
|
||
·
|
A $39 million decrease due to the elimination of POLR charges, effective June 2011, in Ohio as a result of the October 2011 PUCO remand order.
|
||
These decreases were partially offset by:
|
|||
·
|
Successful rate proceedings in our service territories which include:
|
||
·
|
A $37 million rate increase for OPCo.
|
||
·
|
A $22 million rate increase for APCo.
|
||
·
|
A $16 million rate increase for I&M.
|
||
·
|
For the rate increases described above, $20 million of these increases relate to riders/trackers which have corresponding increases in other expense items below.
|
||
·
|
Margins from Off-system Sales decreased $2 million primarily due to lower physical sales volumes and lower trading and marketing margins, partially offset by an increase in PJM capacity revenues.
|
||
·
|
Transmission Revenues increased $13 million primarily due to net rate increases in PJM and increased transmission revenues for Ohio customers who have switched to alternative CRES providers. The increase in transmission revenues related to CRES providers partially offsets lost revenues included in Retail Margins above.
|
||
·
|
Other Revenues decreased $24 million primarily due to an unfavorable regulatory order in Ohio and a decrease in gains on other miscellaneous sales.
|
·
|
Other Operation and Maintenance expenses decreased $95 million primarily due to the following:
|
|
·
|
A $41 million decrease due to the first quarter 2011 write-off of a portion of the West Virginia share of the Mountaineer Carbon Capture and Storage Product Validation Facility as denied for recovery by the WVPSC in March 2011.
|
|
·
|
A $35 million decrease due to the first quarter 2012 reversal of an obligation to contribute to Partnership with Ohio and Ohio Growth Fund as a result of the PUCO’s February 2012 rejection of OPCo’s modified stipulation.
|
|
·
|
A $34 million decrease in employee-related expenses.
|
|
·
|
A $27 million decrease in plant outage and other plant operating and maintenance expenses.
|
|
These decreases were partially offset by:
|
||
·
|
A $33 million increase due to the first quarter 2011 deferral of 2009 costs related to storms and our 2010 cost reduction initiatives as allowed by the WVPSC in March 2011.
|
|
·
|
An $11 million gain from the sale of land in January 2011.
|
|
·
|
Depreciation and Amortization expenses increased $19 million primarily due to the following:
|
|
·
|
A $14 million increase due to shortened depreciable lives for certain OPCo generating plants effective December 2011.
|
|
·
|
A $6 million increase due to increased amortization of TCC’s Securitized Transition Assets. The increase in TCC’s securitization related amortizations are offset within Gross Margin.
|
|
·
|
A $6 million increase in depreciation as a result of APCo’s increase in depreciation rates in Virginia effective February 1, 2012.
|
|
·
|
A $5 million increase in amortization primarily due to APCo’s current year amortization as a result of the Virginia E&R surcharge and the Virginia Environmental Rate Adjustment Clause, both effective February 2012.
|
|
·
|
Overall higher depreciable property balances.
|
|
These increases were partially offset by:
|
||
·
|
A $9 million decrease due to the amortization of a portion of an Ohio distribution depreciation reserve as approved by the PUCO in the 2011 Ohio Distribution Base Rate Case.
|
|
·
|
Carrying Costs Income increased $5 million primarily due to the following:
|
|
·
|
An $8 million increase due to the recording of debt carrying costs prior to TCC’s issuance of securitization bonds in March 2012.
|
|
·
|
A $3 million increase from carrying charges on APCo’s Dresden Plant resulting from the Virginia Generation Rate Adjustment Clause and the West Virginia Expanded Net Energy Charge.
|
|
These increases were partially offset by:
|
||
·
|
An $8 million decrease primarily due to OPCo’s collections of carrying costs in the first quarter 2012 on phase-in FAC deferrals and certain distribution regulatory assets.
|
|
·
|
Interest Expense decreased $15 million primarily due to lower outstanding long-term debt balances and lower long-term interest rates.
|
|
·
|
Income Tax Expense decreased $28 million primarily due to a decrease in pre-tax book income and audit settlements for previous years.
|
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||
|
(dollars in millions)
|
|||||||||||||||
Long-term Debt, including amounts due within one year
|
$ | 17,320 | 52.1 | % | $ | 16,516 | 50.3 |
%
|
||||||||
Short-term Debt
|
1,050 | 3.2 | 1,650 | 5.0 |
|
|||||||||||
Total Debt
|
18,370 | 55.3 | 18,166 | 55.3 |
|
|||||||||||
AEP Common Equity
|
14,856 | 44.7 | 14,664 | 44.7 |
|
|||||||||||
Noncontrolling Interests
|
1 | - | 1 | - |
|
|||||||||||
|
|
|||||||||||||||
Total Debt and Equity Capitalization
|
$ | 33,227 | 100.0 | % | $ | 32,831 | 100.0 |
%
|
|
|
|
Amount
|
|
Maturity
|
|
|
|
|
(in millions)
|
|
|
|
Commercial Paper Backup:
|
|
|
|
|
|
|
|
Revolving Credit Facility
|
|
$
|
1,500
|
|
June 2015
|
|
Revolving Credit Facility
|
|
|
1,750
|
|
July 2016
|
Total
|
|
|
3,250
|
|
|
|
Cash and Cash Equivalents
|
|
|
286
|
|
|
|
Total Liquidity Sources
|
|
|
3,536
|
|
|
|
Less:
|
AEP Commercial Paper Outstanding
|
|
|
385
|
|
|
|
Letters of Credit Issued
|
|
|
189
|
|
|
|
|
|
|
|
|
|
Net Available Liquidity
|
|
$
|
2,962
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
$ | 221 | $ | 294 | ||||
Net Cash Flows from Operating Activities
|
876 | 830 | ||||||
Net Cash Flows Used for Investing Activities
|
(792 | ) | (613 | ) | ||||
Net Cash Flows from (Used for) Financing Activities
|
(19 | ) | 114 | |||||
Net Increase in Cash and Cash Equivalents
|
65 | 331 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 286 | $ | 625 |
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Net Income
|
$ | 390 | $ | 355 | ||||
Depreciation and Amortization
|
423 | 403 | ||||||
Other
|
63 | 72 | ||||||
Net Cash Flows from Operating Activities
|
$ | 876 | $ | 830 |
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Construction Expenditures
|
$ | (741 | ) | $ | (540 | ) | ||
Acquisitions of Nuclear Fuel
|
(11 | ) | (27 | ) | ||||
Acquisitions of Assets/Businesses
|
(85 | ) | (2 | ) | ||||
Acquisition of Cushion Gas from BOA
|
- | (214 | ) | |||||
Proceeds from Sales of Assets
|
8 | 69 | ||||||
Other
|
37 | 101 | ||||||
Net Cash Flows Used for Investing Activities
|
$ | (792 | ) | $ | (613 | ) |
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Issuance of Common Stock, Net
|
$ | 31 | $ | 31 | ||||
Issuance of Debt, Net
|
193 | 324 | ||||||
Dividends Paid on Common Stock
|
(229 | ) | (223 | ) | ||||
Other
|
(14 | ) | (18 | ) | ||||
Net Cash Flows from (Used for) Financing Activities
|
$ | (19 | ) | $ | 114 |
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
|
(in millions)
|
|||||||
Rockport Plant Unit 2 Future Minimum Lease Payments
|
$ | 1,626 | $ | 1,626 | ||||
Railcars Maximum Potential Loss From Lease Agreement
|
25 | 25 |
MTM Risk Management Contract Net Assets (Liabilities)
|
||||||||||||
Three Months Ended March 31, 2012
|
||||||||||||
|
||||||||||||
|
|
Generation
|
|
|||||||||
|
Utility
|
and
|
|
|||||||||
|
Operations
|
Marketing
|
Total
|
|||||||||
|
(in millions)
|
|||||||||||
Total MTM Risk Management Contract Net Assets
|
|
|
|
|||||||||
at December 31, 2011
|
$ | 59 | $ | 132 | $ | 191 | ||||||
(Gain) Loss from Contracts Realized/Settled During the Period and
|
||||||||||||
Entered in a Prior Period
|
2 | (9 | ) | (7 | ) | |||||||
Fair Value of New Contracts at Inception When Entered During the
|
||||||||||||
Period (a)
|
4 | 4 | 8 | |||||||||
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)
|
3 | 3 | 6 | |||||||||
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
4 | - | 4 | |||||||||
Total MTM Risk Management Contract Net Assets
|
||||||||||||
at March 31, 2012
|
$ | 72 | $ | 130 | 202 | |||||||
|
||||||||||||
Commodity Cash Flow Hedge Contracts
|
(26 | ) | ||||||||||
Interest Rate and Foreign Currency Cash Flow Hedge Contracts
|
(15 | ) | ||||||||||
Fair Value Hedge Contracts
|
1 | |||||||||||
Collateral Deposits
|
85 | |||||||||||
Total MTM Derivative Contract Net Assets at March 31, 2012
|
$ | 247 |
(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.
|
|
|
|
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
|
|
$
|
637
|
|
$
|
4
|
|
$
|
633
|
|
|
2
|
|
$
|
240
|
|
Split Rating
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Noninvestment Grade
|
|
|
11
|
|
|
-
|
|
|
11
|
|
|
1
|
|
|
11
|
|
No External Ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internal Investment Grade
|
|
|
316
|
|
|
-
|
|
|
316
|
|
|
2
|
|
|
178
|
|
Internal Noninvestment Grade
|
|
|
55
|
|
|
11
|
|
|
44
|
|
|
1
|
|
|
34
|
Total as of March 31, 2012
|
|
$
|
1,019
|
|
$
|
15
|
|
$
|
1,004
|
|
|
6
|
|
$
|
463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as of December 31, 2011
|
|
$
|
960
|
|
$
|
19
|
|
$
|
941
|
|
|
5
|
|
$
|
348
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||
March 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||
End
|
High
|
Average
|
Low
|
End
|
High
|
Average
|
Low
|
|||||||||||||||
(in millions)
|
(in millions)
|
|||||||||||||||||||||
$
|
-
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
-
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||
(in millions, except per-share and share amounts)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2012
|
2011
|
||||||
REVENUES
|
|
|
||||||
Utility Operations
|
$ | 3,363 | $ | 3,497 | ||||
Other Revenues
|
262 | 233 | ||||||
TOTAL REVENUES
|
3,625 | 3,730 | ||||||
EXPENSES
|
||||||||
Fuel and Other Consumables Used for Electric Generation
|
1,053 | 1,056 | ||||||
Purchased Electricity for Resale
|
260 | 275 | ||||||
Other Operation
|
656 | 686 | ||||||
Maintenance
|
262 | 265 | ||||||
Depreciation and Amortization
|
423 | 403 | ||||||
Taxes Other Than Income Taxes
|
217 | 213 | ||||||
TOTAL EXPENSES
|
2,871 | 2,898 | ||||||
|
||||||||
OPERATING INCOME
|
754 | 832 | ||||||
|
||||||||
Other Income (Expense):
|
||||||||
Interest and Investment Income
|
2 | 2 | ||||||
Carrying Costs Income
|
20 | 15 | ||||||
Allowance for Equity Funds Used During Construction
|
23 | 20 | ||||||
Interest Expense
|
(229 | ) | (242 | ) | ||||
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
570 | 627 | ||||||
|
||||||||
Income Tax Expense
|
189 | 278 | ||||||
Equity Earnings of Unconsolidated Subsidiaries
|
9 | 6 | ||||||
|
||||||||
NET INCOME
|
390 | 355 | ||||||
|
||||||||
Net Income Attributable to Noncontrolling Interests
|
1 | 1 | ||||||
|
||||||||
NET INCOME ATTRIBUTABLE TO AEP SHAREHOLDERS
|
389 | 354 | ||||||
|
||||||||
Preferred Stock Dividend Requirements of Subsidiaries
|
- | 1 | ||||||
|
||||||||
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
$ | 389 | $ | 353 | ||||
|
||||||||
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
483,828,101 | 481,144,270 | ||||||
|
||||||||
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON
|
||||||||
SHAREHOLDERS
|
$ | 0.80 | $ | 0.73 | ||||
|
||||||||
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
484,248,868 | 481,365,806 | ||||||
|
||||||||
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON
|
||||||||
SHAREHOLDERS
|
$ | 0.80 | $ | 0.73 | ||||
|
||||||||
CASH DIVIDENDS DECLARED PER SHARE
|
$ | 0.47 | $ | 0.46 | ||||
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 30.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||
(in millions)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
|
2012
|
2011
|
||||||
NET INCOME
|
$ | 390 | $ | 355 | ||||
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
||||||||
Cash Flow Hedges, Net of Tax of $6 in 2012 and $1 in 2011
|
(11 | ) | 1 | |||||
Securities Available for Sale, Net of Tax of $1 in 2012 and $- in 2011
|
2 | 1 | ||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $4 in 2012 and
|
||||||||
$3 in 2011
|
7 | 6 | ||||||
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
(2 | ) | 8 | |||||
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
388 | 363 | ||||||
|
||||||||
Total Comprehensive Income Attributable to Noncontrolling Interests
|
1 | 1 | ||||||
|
||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO AEP
|
||||||||
SHAREHOLDERS
|
387 | 362 | ||||||
|
||||||||
Preferred Stock Dividend Requirements of Subsidiaries
|
- | 1 | ||||||
|
||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO AEP
|
||||||||
COMMON SHAREHOLDERS
|
$ | 387 | $ | 361 | ||||
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 30.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|||||||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||||||||||||||||
(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, 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
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
NET INCOME
|
|
|
|
|
|
|
|
|
|
|
354
|
|
|
|
|
|
1
|
|
|
355
|
|||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
8
|
|||
TOTAL EQUITY – MARCH 31, 2011
|
|
502
|
|
$
|
3,263
|
|
$
|
5,916
|
|
$
|
4,973
|
|
$
|
(373)
|
|
$
|
-
|
|
$
|
13,779
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL EQUITY – DECEMBER 31, 2011
|
|
504
|
|
$
|
3,274
|
|
$
|
5,970
|
|
$
|
5,890
|
|
$
|
(470)
|
|
$
|
1
|
|
$
|
14,665
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Issuance of Common Stock
|
|
1
|
|
|
6
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
31
|
|||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
|
|
(228)
|
|
|
|
|
|
(1)
|
|
|
(229)
|
|||
Other Changes in Equity
|
|
|
|
|
|
|
|
3
|
|
|
(1)
|
|
|
|
|
|
|
|
|
2
|
|||
SUBTOTAL – EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,469
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
NET INCOME
|
|
|
|
|
|
|
|
|
|
|
389
|
|
|
|
|
|
1
|
|
|
390
|
|||
OTHER COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(2)
|
|||
TOTAL EQUITY – MARCH 31, 2012
|
|
505
|
|
$
|
3,280
|
|
$
|
5,998
|
|
$
|
6,050
|
|
$
|
(472)
|
|
$
|
1
|
|
$
|
14,857
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 30.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
ASSETS
|
||||||||||||
March 31, 2012 and December 31, 2011
|
||||||||||||
(in millions)
|
||||||||||||
(Unaudited)
|
||||||||||||
|
||||||||||||
|
|
2012
|
|
2011
|
||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
||||||
Cash and Cash Equivalents
|
|
$
|
286
|
|
$
|
221
|
||||||
Other Temporary Investments
|
|
|
|
|
|
|
||||||
|
(March 31, 2012 and December 31, 2011 amounts include $202 and $281, respectively, related to Transition Funding and EIS)
|
|
|
217
|
|
|
294
|
|||||
Accounts Receivable:
|
|
|
|
|
|
|
||||||
|
Customers
|
|
|
616
|
|
|
690
|
|||||
|
Accrued Unbilled Revenues
|
|
|
78
|
|
|
106
|
|||||
|
Pledged Accounts Receivable – AEP Credit
|
|
|
896
|
|
|
920
|
|||||
|
Miscellaneous
|
|
|
114
|
|
|
150
|
|||||
|
Allowance for Uncollectible Accounts
|
|
|
(34)
|
|
|
(32)
|
|||||
|
|
Total Accounts Receivable
|
|
|
1,670
|
|
|
1,834
|
||||
Fuel
|
|
|
780
|
|
|
657
|
||||||
Materials and Supplies
|
|
|
638
|
|
|
635
|
||||||
Risk Management Assets
|
|
|
246
|
|
|
193
|
||||||
Accrued Tax Benefits
|
|
|
47
|
|
|
51
|
||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
|
75
|
|
|
65
|
||||||
Margin Deposits
|
|
|
70
|
|
|
67
|
||||||
Prepayments and Other Current Assets
|
|
|
185
|
|
|
165
|
||||||
TOTAL CURRENT ASSETS
|
|
|
4,214
|
|
|
4,182
|
||||||
|
|
|
|
|
|
|
||||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
||||||
Electric:
|
|
|
|
|
|
|
||||||
|
Generation
|
|
|
25,309
|
|
|
24,938
|
|||||
|
Transmission
|
|
|
9,211
|
|
|
9,048
|
|||||
|
Distribution
|
|
|
14,944
|
|
|
14,783
|
|||||
Other Property, Plant and Equipment (including nuclear fuel and coal mining)
|
|
|
3,836
|
|
|
3,780
|
||||||
Construction Work in Progress
|
|
|
2,923
|
|
|
3,121
|
||||||
Total Property, Plant and Equipment
|
|
|
56,223
|
|
|
55,670
|
||||||
Accumulated Depreciation and Amortization
|
|
|
18,791
|
|
|
18,699
|
||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
|
37,432
|
|
|
36,971
|
||||||
|
|
|
|
|
|
|
||||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
||||||
Regulatory Assets
|
|
|
5,291
|
|
|
6,026
|
||||||
Securitized Transition Assets
|
|
|
2,289
|
|
|
1,627
|
||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
1,662
|
|
|
1,592
|
||||||
Goodwill
|
|
|
90
|
|
|
76
|
||||||
Long-term Risk Management Assets
|
|
|
425
|
|
|
403
|
||||||
Deferred Charges and Other Noncurrent Assets
|
|
|
1,499
|
|
|
1,346
|
||||||
TOTAL OTHER NONCURRENT ASSETS
|
|
|
11,256
|
|
|
11,070
|
||||||
|
|
|
|
|
|
|
||||||
TOTAL ASSETS
|
|
$
|
52,902
|
|
$
|
52,223
|
||||||
|
|
|
|
|
|
|
||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 30.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
March 31, 2012 and December 31, 2011
|
||||||||||||
(dollars in millions)
|
||||||||||||
(Unaudited)
|
||||||||||||
|
||||||||||||
|
|
2012
|
|
2011
|
||||||||
CURRENT LIABILITIES
|
|
|
||||||||||
Accounts Payable
|
|
$
|
978
|
|
$
|
1,095
|
||||||
Short-term Debt:
|
|
|
|
|
|
|
||||||
|
Securitized Debt for Receivables - AEP Credit
|
|
|
|
665
|
|
|
666
|
||||
|
Other Short-term Debt
|
|
|
|
385
|
|
|
984
|
||||
|
|
Total Short-term Debt
|
|
|
|
1,050
|
|
|
1,650
|
|||
Long-term Debt Due Within One Year
|
|
|
|
|
|
|
||||||
|
(March 31, 2012 and December 31, 2011 amounts include $316 and $293, respectively, related to Transition Funding, DCC Fuel and Sabine)
|
|
|
1,980
|
|
|
1,433
|
|||||
Risk Management Liabilities
|
|
|
185
|
|
|
150
|
||||||
Customer Deposits
|
|
|
301
|
|
|
289
|
||||||
Accrued Taxes
|
|
|
679
|
|
|
717
|
||||||
Accrued Interest
|
|
|
237
|
|
|
279
|
||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
|
79
|
|
|
8
|
||||||
Other Current Liabilities
|
|
|
853
|
|
|
990
|
||||||
TOTAL CURRENT LIABILITIES
|
|
|
6,342
|
|
|
6,611
|
||||||
|
|
|
|
|
|
|
||||||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
||||||
Long-term Debt
|
|
|
|
|
|
|
||||||
|
(March 31, 2012 and December 31, 2011 amounts include $2,382 and $1,674, respectively, related to Transition Funding, DCC Fuel and Sabine)
|
|
|
15,340
|
|
|
15,083
|
|||||
Long-term Risk Management Liabilities
|
|
|
239
|
|
|
195
|
||||||
Deferred Income Taxes
|
|
|
8,493
|
|
|
8,227
|
||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
3,469
|
|
|
3,195
|
||||||
Asset Retirement Obligations
|
|
|
1,500
|
|
|
1,472
|
||||||
Employee Benefits and Pension Obligations
|
|
|
1,739
|
|
|
1,801
|
||||||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
923
|
|
|
974
|
||||||
TOTAL NONCURRENT LIABILITIES
|
|
|
31,703
|
|
|
30,947
|
||||||
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES
|
|
|
38,045
|
|
|
37,558
|
||||||
|
|
|
|
|
|
|
||||||
Rate Matters (Note 2)
|
|
|
|
|
|
|
||||||
Commitments and Contingencies (Note 3)
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
EQUITY
|
|
|
|
|
|
|
||||||
Common Stock – Par Value – $6.50 Per Share:
|
|
|
|
|
|
|
||||||
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Shares Authorized
|
600,000,000
|
|
600,000,000
|
|
|
|
|
|
|
|
|
|
Shares Issued
|
504,566,633
|
|
503,759,460
|
|
|
|
|
|
|
|
|
(20,336,592 shares were held in treasury at March 31, 2012 and December 31, 2011)
|
|
|
3,280
|
|
|
3,274
|
||||||
Paid-in Capital
|
|
|
5,998
|
|
|
5,970
|
||||||
Retained Earnings
|
|
|
6,050
|
|
|
5,890
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
(472)
|
|
|
(470)
|
||||||
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY
|
|
|
14,856
|
|
|
14,664
|
||||||
|
|
|
|
|
|
|
||||||
Noncontrolling Interests
|
|
|
1
|
|
|
1
|
||||||
|
|
|
|
|
|
|
||||||
TOTAL EQUITY
|
|
|
14,857
|
|
|
14,665
|
||||||
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
52,902
|
|
$
|
52,223
|
||||||
|
|
|
|
|
|
|
||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 30.
|
|
|
|
|
|
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||
(in millions)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2012
|
2011
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 390 | $ | 355 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
||||||||
Depreciation and Amortization
|
423 | 403 | ||||||
Deferred Income Taxes
|
261 | 330 | ||||||
Gain on Settlement with BOA and Enron
|
- | (51 | ) | |||||
Settlement of Litigation with BOA and Enron
|
- | (211 | ) | |||||
Carrying Costs Income
|
(20 | ) | (15 | ) | ||||
Allowance for Equity Funds Used During Construction
|
(23 | ) | (20 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
10 | 42 | ||||||
Amortization of Nuclear Fuel
|
34 | 34 | ||||||
Property Taxes
|
(49 | ) | (52 | ) | ||||
Fuel Over/Under-Recovery, Net
|
112 | (27 | ) | |||||
Change in Other Noncurrent Assets
|
(59 | ) | (3 | ) | ||||
Change in Other Noncurrent Liabilities
|
(47 | ) | 77 | |||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
207 | 181 | ||||||
Fuel, Materials and Supplies
|
(126 | ) | 121 | |||||
Accounts Payable
|
(26 | ) | (126 | ) | ||||
Accrued Taxes, Net
|
(30 | ) | (96 | ) | ||||
Other Current Assets
|
(15 | ) | 2 | |||||
Other Current Liabilities
|
(166 | ) | (114 | ) | ||||
Net Cash Flows from Operating Activities
|
876 | 830 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(741 | ) | (540 | ) | ||||
Change in Other Temporary Investments, Net
|
79 | 73 | ||||||
Purchases of Investment Securities
|
(353 | ) | (454 | ) | ||||
Sales of Investment Securities
|
334 | 484 | ||||||
Acquisitions of Nuclear Fuel
|
(11 | ) | (27 | ) | ||||
Acquisitions of Assets/Businesses
|
(85 | ) | (2 | ) | ||||
Acquisition of Cushion Gas from BOA
|
- | (214 | ) | |||||
Proceeds from Sales of Assets
|
8 | 69 | ||||||
Other Investing Activities
|
(23 | ) | (2 | ) | ||||
Net Cash Flows Used for Investing Activities
|
(792 | ) | (613 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Common Stock, Net
|
31 | 31 | ||||||
Issuance of Long-term Debt
|
1,132 | 1,014 | ||||||
Commercial Paper and Credit Facility Borrowings
|
21 | 318 | ||||||
Change in Short-term Debt, Net
|
(583 | ) | 244 | |||||
Retirement of Long-term Debt
|
(339 | ) | (777 | ) | ||||
Commercial Paper and Credit Facility Repayments
|
(38 | ) | (475 | ) | ||||
Principal Payments for Capital Lease Obligations
|
(18 | ) | (17 | ) | ||||
Dividends Paid on Common Stock
|
(229 | ) | (223 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
- | (1 | ) | |||||
Other Financing Activities
|
4 | - | ||||||
Net Cash Flows from (Used for) Financing Activities
|
(19 | ) | 114 | |||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
65 | 331 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
221 | 294 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 286 | $ | 625 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 265 | $ | 250 | ||||
Net Cash Paid (Received) for Income Taxes
|
(65 | ) | 2 | |||||
Noncash Acquisitions Under Capital Leases
|
20 | 24 | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
250 | 220 | ||||||
Noncash Assumption of Liabilities Related to Acquisitions
|
56 | - | ||||||
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 30.
|
1.
|
Significant Accounting Matters
|
2.
|
Rate Matters
|
3.
|
Commitments, Guarantees and Contingencies
|
4.
|
Acquisition and Disposition
|
5.
|
Benefit Plans
|
6.
|
Business Segments
|
7.
|
Derivatives and Hedging
|
8.
|
Fair Value Measurements
|
9.
|
Income Taxes
|
10.
|
Financing Activities
|
CONDENSED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||||||
VARIABLE INTEREST ENTITIES
|
|||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||
(in millions)
|
|||||||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
TCC
|
||||||||||||||
|
SWEPCo
|
I&M
|
Protected Cell
|
|
Transition
|
||||||||||||||
|
Sabine
|
DCC Fuel
|
of EIS
|
AEP Credit
|
Funding
|
||||||||||||||
ASSETS
|
|
|
|
|
|
||||||||||||||
Current Assets
|
$ | 75 | $ | 123 | $ | 130 | $ | 885 | $ | 141 | |||||||||
Net Property, Plant and Equipment
|
167 | 159 | - | - | - | ||||||||||||||
Other Noncurrent Assets
|
57 | 98 | 6 | 1 | 2,343 | ||||||||||||||
Total Assets
|
$ | 299 | $ | 380 | $ | 136 | $ | 886 | $ | 2,484 | |||||||||
|
|||||||||||||||||||
LIABILITIES AND EQUITY
|
|||||||||||||||||||
Current Liabilities
|
$ | 48 | $ | 92 | $ | 51 | $ | 840 | $ | 248 | |||||||||
Noncurrent Liabilities
|
251 | 288 | 67 | 1 | 2,218 | ||||||||||||||
Equity
|
- | - | 18 | 45 | 18 | ||||||||||||||
Total Liabilities and Equity
|
$ | 299 | $ | 380 | $ | 136 | $ | 886 | $ | 2,484 |
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||||||
VARIABLE INTEREST ENTITIES
|
|||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||
(in millions)
|
|||||||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
TCC
|
||||||||||||||
|
SWEPCo
|
I&M
|
Protected Cell
|
|
Transition
|
||||||||||||||
|
Sabine
|
DCC Fuel
|
of EIS
|
AEP Credit
|
Funding
|
||||||||||||||
ASSETS
|
|
|
|
|
|
||||||||||||||
Current Assets
|
$ | 48 | $ | 118 | $ | 121 | $ | 910 | $ | 220 | |||||||||
Net Property, Plant and Equipment
|
154 | 188 | - | - | - | ||||||||||||||
Other Noncurrent Assets
|
42 | 118 | 6 | 1 | 1,580 | ||||||||||||||
Total Assets
|
$ | 244 | $ | 424 | $ | 127 | $ | 911 | $ | 1,800 | |||||||||
|
|||||||||||||||||||
LIABILITIES AND EQUITY
|
|||||||||||||||||||
Current Liabilities
|
$ | 68 | $ | 103 | $ | 40 | $ | 864 | $ | 229 | |||||||||
Noncurrent Liabilities
|
176 | 321 | 71 | 1 | 1,557 | ||||||||||||||
Equity
|
- | - | 16 | 46 | 14 | ||||||||||||||
Total Liabilities and Equity
|
$ | 244 | $ | 424 | $ | 127 | $ | 911 | $ | 1,800 |
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||
|
As Reported on
|
Maximum
|
As Reported on
|
Maximum
|
||||||||||||
|
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
Exposure
|
||||||||||||
|
(in millions)
|
|||||||||||||||
Capital Contribution from SWEPCo
|
$ | 8 | $ | 8 | $ | 8 | $ | 8 | ||||||||
Retained Earnings
|
1 | 1 | 1 | 1 | ||||||||||||
SWEPCo's Guarantee of Debt
|
- | 54 | - | 52 | ||||||||||||
|
||||||||||||||||
Total Investment in DHLC
|
$ | 9 | $ | 63 | $ | 9 | $ | 61 |
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||
|
As Reported on
|
Maximum
|
As Reported on
|
Maximum
|
||||||||||||
|
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
Exposure
|
||||||||||||
|
|
(in millions)
|
|
|||||||||||||
Capital Contribution from AEP
|
$ | 19 | $ | 19 | $ | 19 | $ | 19 | ||||||||
Retained Earnings
|
11 | 11 | 10 | 10 | ||||||||||||
|
||||||||||||||||
Total Investment in PATH-WV
|
$ | 30 | $ | 30 | $ | 29 | $ | 29 |
|
Three Months Ended March 31,
|
||||||||||||||
|
2012
|
2011
|
|||||||||||||
|
(in millions, except per share data)
|
||||||||||||||
|
|
$/share
|
|
$/share
|
|||||||||||
Earnings Attributable to AEP Common Shareholders
|
$ | 389 |
|
$ | 353 |
|
|||||||||
|
|
|
|||||||||||||
Weighted Average Number of Basic Shares Outstanding
|
483.8 | $ | 0.80 | 481.1 | $ | 0.73 | |||||||||
Weighted Average Dilutive Effect of:
|
|||||||||||||||
Stock Options
|
- | - | 0.1 | - | |||||||||||
Restricted Stock Units
|
0.4 | - | 0.2 | - | |||||||||||
Weighted Average Number of Diluted Shares Outstanding
|
484.2 | $ | 0.80 | 481.4 | $ | 0.73 |
|
March 31,
|
December 31,
|
|||||
|
2012
|
2011
|
|||||
|
(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
|
|
|
|||||
Storm Related Costs
|
$ | 24 | $ | 24 | |||
Economic Development Rider
|
13 | 13 | |||||
Regulatory Assets Currently Not Earning a Return
|
|||||||
Deferred Wind Power Costs
|
44 | 38 | |||||
Environmental Rate Adjustment Clause
|
21 | 18 | |||||
Mountaineer Carbon Capture and Storage Product Validation Facility
|
14 | 14 | |||||
Special Rate Mechanism for Century Aluminum
|
13 | 13 | |||||
Litigation Settlement
|
11 | 11 | |||||
Storm Related Costs
|
2 | 10 | |||||
Other Regulatory Assets Not Yet Being Recovered
|
19 | 14 | |||||
Total Regulatory Assets Not Yet Being Recovered
|
$ | 161 | $ | 155 |
2011 Indiana Base Rate Case
|
Big Sandy Unit 2 FGD System
|
The Comprehensive Environmental Response Compensation and Liability Act (Superfund) and State Remediation
|
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(in millions)
|
|||||||||||||||
Service Cost
|
$ | 19 | $ | 18 | $ | 12 | $ | 11 | ||||||||
Interest Cost
|
56 | 59 | 26 | 27 | ||||||||||||
Expected Return on Plan Assets
|
(80 | ) | (79 | ) | (25 | ) | (27 | ) | ||||||||
Amortization of Prior Service Credit
|
- | - | (5 | ) | - | |||||||||||
Amortization of Net Actuarial Loss
|
37 | 30 | 14 | 7 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 32 | $ | 28 | $ | 22 | $ | 18 |
·
|
Generation of electricity for sale to U.S. retail and wholesale customers.
|
·
|
Transmission and distribution of electricity through assets owned and operated by our ten utility operating companies.
|
·
|
Development, construction and operation of transmission facilities through investments in our wholly-owned transmission subsidiaries that were established in 2009 and our transmission joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.
|
·
|
In April 2012, AEP and Great Plains Energy (Great Plains) formed Transource Energy LLC (Transource). AEP and Great Plains own 86.5% and 13.5% of Transource, respectively. Transource will initially pursue transmission power projects in PJM, SPP and MISO.
|
·
|
Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.
|
·
|
Nonregulated generation in ERCOT.
|
·
|
Marketing, risk management and retail activities in ERCOT, 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 were financial derivatives which settled and expired in the fourth quarter of 2011.
|
·
|
Revenue sharing related to the Plaquemine Cogeneration Facility which ended in the fourth quarter of 2011.
|
|
|
|
|
|
|
|
|
|
|
|
Nonutility Operations
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
|
|
Transmission
|
|
AEP River
|
and
|
All Other
|
Reconciling
|
|
|
||||||||||||
|
|
|
Operations
|
|
Operations
|
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
|||||||||||||
|
|
|
|
(in millions)
|
||||||||||||||||||||
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
External Customers
|
|
$
|
3,362
|
|
$
|
1
|
|
|
$
|
172
|
|
$
|
85
|
|
$
|
5
|
|
$
|
-
|
|
$
|
3,625
|
|
|
Other Operating Segments
|
|
|
23
|
|
|
2
|
|
|
|
7
|
|
|
-
|
|
|
2
|
|
|
(34)
|
|
|
-
|
Total Revenues
|
|
$
|
3,385
|
|
$
|
3
|
|
|
$
|
179
|
|
$
|
85
|
|
$
|
7
|
|
$
|
(34)
|
|
$
|
3,625
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
|
384
|
|
$
|
9
|
|
|
$
|
9
|
|
$
|
(1)
|
|
$
|
(11)
|
|
$
|
-
|
|
$
|
390
|
||
|
|
|
|
|
|
|
|
|
|
|
Nonutility Operations
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
|
|
Transmission
|
|
AEP River
|
and
|
All Other
|
Reconciling
|
|
|
||||||||||||
|
|
|
Operations
|
|
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)
|
|
$
|
374
|
|
$
|
4
|
|
|
$
|
7
|
|
$
|
1
|
|
$
|
(31)
|
|
$
|
-
|
|
$
|
355
|
|
|
|
|
|
|
|
|
|
|
Nonutility Operations
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation
|
|
|
|
|
Reconciling
|
|
|
|
|
||
|
|
|
Utility
|
|
Transmission
|
|
AEP River
|
|
and
|
|
All Other
|
|
Adjustments
|
|
|
|
|
|||||||
|
|
|
Operations
|
|
Operations
|
|
Operations
|
|
Marketing
|
|
(a)
|
|
(b)
|
|
|
Consolidated
|
||||||||
|
|
|
|
(in millions)
|
||||||||||||||||||||
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Property, Plant and Equipment
|
|
$
|
54,839
|
|
$
|
410
|
|
$
|
612
|
|
$
|
617
|
|
$
|
11
|
|
$
|
(266)
|
|
|
$
|
56,223
|
||
Accumulated Depreciation and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Amortization
|
|
|
18,474
|
|
|
1
|
|
|
143
|
|
|
225
|
|
|
10
|
|
|
(62)
|
|
|
|
18,791
|
|
Total Property, Plant and Equipment - Net |
|
$
|
36,365
|
|
$
|
409
|
|
$
|
469
|
|
$
|
392
|
|
$
|
1
|
|
$
|
(204)
|
|
|
$
|
37,432
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
50,581
|
|
$
|
727
|
|
$
|
657
|
|
$
|
1,012
|
|
$
|
16,397
|
|
$
|
(16,472)
|
(c)
|
|
$
|
52,902
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonutility Operations
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation
|
|
|
|
|
Reconciling
|
|
|
|
|
||
|
|
|
Utility
|
|
Transmission
|
|
AEP River
|
|
and
|
|
All Other
|
|
Adjustments
|
|
|
|
|
|||||||
|
|
|
Operations
|
|
Operations
|
|
Operations
|
|
Marketing
|
|
(a)
|
|
(b)
|
|
|
Consolidated
|
||||||||
|
|
|
|
(in millions)
|
||||||||||||||||||||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Property, Plant and Equipment
|
|
$
|
54,396
|
|
$
|
323
|
|
$
|
608
|
|
$
|
590
|
|
$
|
11
|
|
$
|
(258)
|
|
|
$
|
55,670
|
||
Accumulated Depreciation and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Amortization
|
|
|
18,393
|
|
|
-
|
|
|
136
|
|
|
219
|
|
|
10
|
|
|
(59)
|
|
|
|
18,699
|
|
Total Property, Plant and Equipment - Net |
|
$
|
36,003
|
|
$
|
323
|
|
$
|
472
|
|
$
|
371
|
|
$
|
1
|
|
$
|
(199)
|
|
|
$
|
36,971
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
50,093
|
|
$
|
594
|
|
$
|
659
|
|
$
|
868
|
|
$
|
16,751
|
|
$
|
(16,742)
|
(c)
|
|
$
|
52,223
|
·
|
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 were financial derivatives which settled and expired in the fourth quarter of 2011.
|
·
|
Revenue sharing related to the Plaquemine Cogeneration Facility which ended 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
|
||||||
|
2012
|
2011
|
Measure
|
||||||
Primary Risk Exposure
|
(in millions)
|
|
|||||||
Commodity:
|
|
|
|
||||||
Power
|
524 | 609 |
MWHs
|
||||||
Coal
|
19 | 21 |
Tons
|
||||||
Natural Gas
|
113 | 100 |
MMBtus
|
||||||
Heating Oil and Gasoline
|
4 | 6 |
Gallons
|
||||||
Interest Rate
|
$ | 202 | $ | 226 |
USD
|
||||
|
|
||||||||
Interest Rate and Foreign Currency
|
$ | 803 | $ | 907 |
USD
|
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND THE IMPACT ON OUR FINANCIAL STATEMENTS
|
Fair Value of Derivative Instruments
|
|||||||||||||||
March 31, 2012
|
|||||||||||||||
|
|||||||||||||||
|
Risk Management
|
|
|
|
|
||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||
|
|
|
and Foreign
|
|
|
||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||
|
(in millions)
|
||||||||||||||
Current Risk Management Assets
|
$ | 1,298 | $ | 41 | $ | 1 | $ | (1,094 | ) | $ | 246 | ||||
Long-term Risk Management Assets
|
758 | 21 | - | (354 | ) | 425 | |||||||||
Total Assets
|
2,056 | 62 | 1 | (1,448 | ) | 671 | |||||||||
|
|||||||||||||||
Current Risk Management Liabilities
|
1,275 | 63 | 13 | (1,166 | ) | 185 | |||||||||
Long-term Risk Management Liabilities
|
604 | 25 | 2 | (392 | ) | 239 | |||||||||
Total Liabilities
|
1,879 | 88 | 15 | (1,558 | ) | 424 | |||||||||
|
|||||||||||||||
Total MTM Derivative Contract Net Assets
|
|||||||||||||||
(Liabilities)
|
$ | 177 | $ | (26 | ) | $ | (14 | ) | $ | 110 | $ | 247 |
Fair Value of Derivative Instruments
|
|||||||||||||||
December 31, 2011
|
|||||||||||||||
|
|||||||||||||||
|
Risk Management
|
|
|
|
|
||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||
|
|
|
and Foreign
|
|
|
||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||
|
(in millions)
|
||||||||||||||
Current Risk Management Assets
|
$ | 852 | $ | 24 | $ | - | $ | (683 | ) | $ | 193 | ||||
Long-term Risk Management Assets
|
641 | 15 | - | (253 | ) | 403 | |||||||||
Total Assets
|
1,493 | 39 | - | (936 | ) | 596 | |||||||||
|
|||||||||||||||
Current Risk Management Liabilities
|
847 | 29 | 20 | (746 | ) | 150 | |||||||||
Long-term Risk Management Liabilities
|
483 | 15 | 22 | (325 | ) | 195 | |||||||||
Total Liabilities
|
1,330 | 44 | 42 | (1,071 | ) | 345 | |||||||||
|
|||||||||||||||
Total MTM Derivative Contract Net Assets
|
|||||||||||||||
(Liabilities)
|
$ | 163 | $ | (5 | ) | $ | (42 | ) | $ | 135 | $ | 251 |
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 de-designated risk management contracts.
|
Amount of Gain (Loss) Recognized on
|
|||||||
Risk Management Contracts
|
|||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||
|
|
|
|||||
Location of Gain (Loss)
|
2012
|
2011
|
|||||
|
(in millions)
|
||||||
Utility Operations Revenues
|
$ | 10 | $ | 20 | |||
Other Revenues
|
3 | 2 | |||||
Regulatory Assets (a)
|
(21 | ) | 2 | ||||
Regulatory Liabilities (a)
|
14 | 8 | |||||
Total Gain on Risk Management Contracts
|
$ | 6 | $ | 32 |
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||
For the Three Months Ended March 31, 2012
|
|||||||||
|
|
Interest Rate
|
|
||||||
|
|
and Foreign
|
|
||||||
|
Commodity
|
Currency
|
Total
|
||||||
|
(in millions)
|
||||||||
Balance in AOCI as of December 31, 2011
|
$ | (3 | ) | $ | (20 | ) | $ | (23 | ) |
Changes in Fair Value Recognized in AOCI
|
(20 | ) | 1 | (19 | ) | ||||
Amount of (Gain) or Loss Reclassified from AOCI
|
|||||||||
to Statement of Income/within Balance Sheet:
|
|||||||||
Utility Operations Revenues
|
- | - | - | ||||||
Other Revenues
|
(1 | ) | - | (1 | ) | ||||
Purchased Electricity for Resale
|
7 | - | 7 | ||||||
Interest Expense
|
- | 1 | 1 | ||||||
Regulatory Assets (a)
|
1 | - | 1 | ||||||
Regulatory Liabilities (a)
|
- | - | - | ||||||
Balance in AOCI as of March 31, 2012
|
$ | (16 | ) | $ | (18 | ) | $ | (34 | ) |
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 Statement of Income/within Balance Sheet:
|
|||||||||
Utility Operations Revenues
|
- | - | - | ||||||
Other Revenues
|
(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 |
(a)
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
Impact of Cash Flow Hedges on the Condensed Balance Sheet
|
|||||||||
March 31, 2012
|
|||||||||
|
|
|
|
||||||
|
|
Interest Rate
|
|
||||||
|
|
and Foreign
|
|
||||||
|
Commodity
|
Currency
|
Total
|
||||||
|
(in millions)
|
||||||||
Hedging Assets (a)
|
$ | 29 | $ | - | $ | 29 | |||
Hedging Liabilities (a)
|
55 | 15 | 70 | ||||||
AOCI Gain (Loss) Net of Tax
|
(16 | ) | (18 | ) | (34 | ) | |||
Portion Expected to be Reclassified to Net
|
|||||||||
Income During the Next Twelve Months
|
(14 | ) | (3 | ) | (17 | ) |
Impact of Cash Flow Hedges on the Condensed Balance Sheet
|
|||||||||
December 31, 2011
|
|||||||||
|
|||||||||
|
Interest Rate
|
||||||||
|
and Foreign
|
||||||||
|
Commodity
|
Currency
|
Total
|
||||||
|
(in millions)
|
||||||||
Hedging Assets (a)
|
$ | 20 | $ | - | $ | 20 | |||
Hedging Liabilities (a)
|
25 | 42 | 67 | ||||||
AOCI Gain (Loss) Net of Tax
|
(3 | ) | (20 | ) | (23 | ) | |||
Portion Expected to be Reclassified to Net
|
|||||||||
Income During the Next Twelve Months
|
(3 | ) | (2 | ) | (5 | ) |
Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the condensed balance sheets.
|
|
|
|
March 31,
|
|
December 31,
|
||
|
|
|
2012
|
|
2011
|
||
|
|
|
(in millions)
|
||||
Liabilities for Derivative Contracts with Credit Downgrade Triggers
|
|
$
|
21
|
|
$
|
32
|
|
Amount of Collateral AEP Subsidiaries Would Have Been
|
|
|
|
|
|
|
|
|
Required to Post
|
|
|
50
|
|
|
39
|
Amount Attributable to RTO and ISO Activities
|
|
|
48
|
|
|
38
|
|
|
March 31,
|
|
December 31,
|
||
|
|
2012
|
|
2011
|
||
|
|
(in millions)
|
||||
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
|
|
|
|
|
|
|
Netting Arrangements
|
|
$
|
716
|
|
$
|
515
|
Amount of Cash Collateral Posted
|
|
|
2
|
|
|
56
|
Additional Settlement Liability if Cross Default Provision is Triggered
|
|
|
354
|
|
|
291
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||
|
|
Book Value
|
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
||||
|
|
(in millions)
|
||||||||||
Long-term Debt
|
|
$
|
17,320
|
|
$
|
19,533
|
|
$
|
16,516
|
|
$
|
19,259
|
|
|
|
|
March 31, 2012
|
|
||||||||||
|
|
|
|
|
|
Gross
|
|
Gross
|
|
Estimated
|
|
||||
|
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|||||
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|||||||
|
|
|
|
(in millions)
|
|
||||||||||
Restricted Cash (a)
|
|
$
|
137
|
|
$
|
-
|
|
$
|
-
|
|
$
|
137
|
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
|
64
|
|
|
-
|
|
|
-
|
|
|
64
|
|
|
Equity Securities - Mutual Funds
|
|
|
11
|
|
|
5
|
|
|
-
|
|
|
16
|
|
||
Total Other Temporary Investments
|
|
$
|
212
|
|
$
|
5
|
|
$
|
-
|
|
$
|
217
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
||||||||||
|
|
|
|
|
|
Gross
|
|
Gross
|
|
Estimated
|
|
||||
|
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
||||
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||||
|
|
|
|
(in millions)
|
|
||||||||||
Restricted Cash (a)
|
|
$
|
216
|
|
$
|
-
|
|
$
|
-
|
|
$
|
216
|
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
|
64
|
|
|
-
|
|
|
-
|
|
|
64
|
|
|
Equity Securities - Mutual Funds
|
|
|
11
|
|
|
3
|
|
|
-
|
|
|
14
|
|
||
Total Other Temporary Investments
|
|
$
|
291
|
|
$
|
3
|
|
$
|
-
|
|
$
|
294
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Primarily represents amounts held for the repayment of debt.
|
|
Three Months Ended March 31,
|
||||||
|
2012
|
2011
|
|||||
|
(in millions)
|
||||||
Proceeds from Investment Sales
|
$ | - | $ | 196 | |||
Purchases of Investments
|
- | 148 | |||||
Gross Realized Gains on Investment Sales
|
- | - | |||||
Gross Realized Losses on Investment Sales
|
- | - |
Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
|
|||
Three Months Ended March 31, 2012
|
|||
|
|
||
|
(in millions)
|
||
Balance in AOCI as of December 31, 2011
|
$ | 2 | |
Changes in Fair Value Recognized in AOCI
|
2 | ||
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:
|
|||
Interest Income
|
- | ||
Balance in AOCI as of March 31, 2012
|
$ | 4 |
·
|
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, 2012
|
|
December 31, 2011
|
|||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
$
|
19
|
|
$
|
-
|
|
$
|
-
|
|
$
|
18
|
|
$
|
-
|
|
$
|
-
|
||||||||||||||||||||||||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
United States Government
|
|
|
548
|
|
|
49
|
|
|
(1)
|
|
|
544
|
|
|
61
|
|
|
(1)
|
|||||||||||||||||||||||
|
Corporate Debt
|
|
|
52
|
|
|
5
|
|
|
(1)
|
|
|
54
|
|
|
5
|
|
|
(2)
|
|||||||||||||||||||||||
|
State and Local Government
|
|
|
323
|
|
|
-
|
|
|
(1)
|
|
|
330
|
|
|
-
|
|
|
(2)
|
|||||||||||||||||||||||
|
Subtotal Fixed Income Securities
|
|
923
|
|
|
54
|
|
|
(3)
|
|
|
928
|
|
|
66
|
|
|
(5)
|
||||||||||||||||||||||||
Equity Securities - Domestic
|
|
|
720
|
|
|
286
|
|
|
(80)
|
|
|
646
|
|
|
215
|
|
|
(80)
|
||||||||||||||||||||||||
Spent Nuclear Fuel and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Decommissioning Trusts
|
|
$
|
1,662
|
|
$
|
340
|
|
$
|
(83)
|
|
$
|
1,592
|
|
$
|
281
|
|
$
|
(85)
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
||
|
(in millions)
|
||||
Proceeds from Investment Sales
|
$
|
334
|
|
$
|
288
|
Purchases of Investments
|
|
353
|
|
|
306
|
Gross Realized Gains on Investment Sales
|
|
2
|
|
|
5
|
Gross Realized Losses on Investment Sales
|
|
1
|
|
|
5
|
|
Fair Value
|
||
|
of Debt
|
||
|
Securities
|
||
|
(in millions)
|
||
Within 1 year
|
$ | 39 | |
1 year – 5 years
|
322 | ||
5 years – 10 years
|
341 | ||
After 10 years
|
221 | ||
Total
|
$ | 923 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
March 31, 2012
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
|||||
Assets:
|
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents (a)
|
$
|
24
|
|
$
|
-
|
|
$
|
-
|
|
$
|
262
|
|
$
|
286
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Restricted Cash (a)
|
|
109
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
137
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
64
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
64
|
|
Equity Securities - Mutual Funds (b)
|
|
16
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
16
|
||
Total Other Temporary Investments
|
|
189
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
217
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (f)
|
|
61
|
|
|
1,821
|
|
|
169
|
|
|
(1,435)
|
|
|
616
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
17
|
|
|
43
|
|
|
1
|
|
|
(32)
|
|
|
29
|
|
Fair Value Hedges
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
1
|
||
De-designated Risk Management Contracts (d)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
25
|
||
Total Risk Management Assets
|
|
78
|
|
|
1,865
|
|
|
170
|
|
|
(1,442)
|
|
|
671
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and Cash Equivalents (e)
|
|
-
|
|
|
10
|
|
|
-
|
|
|
9
|
|
|
19
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
United States Government
|
|
-
|
|
|
548
|
|
|
-
|
|
|
-
|
|
|
548
|
|
|
Corporate Debt
|
|
-
|
|
|
52
|
|
|
-
|
|
|
-
|
|
|
52
|
|
|
State and Local Government
|
|
-
|
|
|
323
|
|
|
-
|
|
|
-
|
|
|
323
|
|
|
|
Subtotal Fixed Income Securities
|
|
-
|
|
|
923
|
|
|
-
|
|
|
-
|
|
|
923
|
Equity Securities - Domestic (b)
|
|
720
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
720
|
||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
720
|
|
|
933
|
|
|
-
|
|
|
9
|
|
|
1,662
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
|
1,011
|
|
$
|
2,798
|
|
$
|
170
|
|
$
|
(1,143)
|
|
$
|
2,836
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (f)
|
$
|
53
|
|
$
|
1,743
|
|
$
|
78
|
|
$
|
(1,520)
|
|
$
|
354
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
-
|
|
|
87
|
|
|
-
|
|
|
(32)
|
|
|
55
|
|
|
Interest Rate/Foreign Currency Hedges
|
|
-
|
|
|
15
|
|
|
-
|
|
|
-
|
|
|
15
|
|
Total Risk Management Liabilities
|
$
|
53
|
|
$
|
1,845
|
|
$
|
78
|
|
$
|
(1,552)
|
|
$
|
424
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
December 31, 2011
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
|||||
Assets:
|
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents (a)
|
$
|
6
|
|
$
|
-
|
|
$
|
-
|
|
$
|
215
|
|
$
|
221
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Restricted Cash (a)
|
|
191
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
216
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mutual Funds
|
|
64
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
64
|
|
Equity Securities - Mutual Funds (b)
|
|
14
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
14
|
||
Total Other Temporary Investments
|
|
269
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
294
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (g)
|
|
47
|
|
|
1,299
|
|
|
147
|
|
|
(945)
|
|
|
548
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
15
|
|
|
23
|
|
|
-
|
|
|
(18)
|
|
|
20
|
|
De-designated Risk Management Contracts (d)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
28
|
|
|
28
|
||
Total Risk Management Assets
|
|
62
|
|
|
1,322
|
|
|
147
|
|
|
(935)
|
|
|
596
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cash and Cash Equivalents (e)
|
|
-
|
|
|
5
|
|
|
-
|
|
|
13
|
|
|
18
|
||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
United States Government
|
|
-
|
|
|
544
|
|
|
-
|
|
|
-
|
|
|
544
|
|
|
Corporate Debt
|
|
-
|
|
|
54
|
|
|
-
|
|
|
-
|
|
|
54
|
|
|
State and Local Government
|
|
-
|
|
|
330
|
|
|
-
|
|
|
-
|
|
|
330
|
|
|
|
Subtotal Fixed Income Securities
|
|
-
|
|
|
928
|
|
|
-
|
|
|
-
|
|
|
928
|
Equity Securities - Domestic (b)
|
|
646
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
646
|
||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
646
|
|
|
933
|
|
|
-
|
|
|
13
|
|
|
1,592
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
|
983
|
|
$
|
2,255
|
|
$
|
147
|
|
$
|
(682)
|
|
$
|
2,703
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk Management Commodity Contracts (c) (g)
|
$
|
43
|
|
$
|
1,209
|
|
$
|
78
|
|
$
|
(1,052)
|
|
$
|
278
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commodity Hedges (c)
|
|
-
|
|
|
43
|
|
|
-
|
|
|
(18)
|
|
|
25
|
|
|
Interest Rate/Foreign Currency Hedges
|
|
-
|
|
|
42
|
|
|
-
|
|
|
-
|
|
|
42
|
|
Total Risk Management Liabilities
|
$
|
43
|
|
$
|
1,294
|
|
$
|
78
|
|
$
|
(1,070)
|
|
$
|
345
|
(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, 2012 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $3 million in 2012, $12 million in periods 2013-2015 and ($7) million in periods 2016-2018; Level 2 matures $4 million in 2012, $49 million in periods 2013-2015, $18 million in periods 2016-2017 and $7 million in periods 2018-2030; Level 3 matures $3 million in 2012, $46 million in periods 2013-2015, $18 million in periods 2016-2017 and $24 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.
|
(g)
|
The December 31, 2011 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $3 million in 2012, $7 million in periods 2013-2015 and ($6) million in periods 2016-2018; Level 2 matures $21 million in 2012, $50 million in periods 2013-2015, $11 million in periods 2016-2017 and $8 million in periods 2018-2030; Level 3 matures ($19) million in 2012, $44 million in periods 2013-2015, $18 million in periods 2016-2017 and $26 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.
|
|
|
|
Net Risk Management
|
|
Three Months Ended March 31, 2012
|
|
Assets (Liabilities)
|
||
|
|
|
(in millions)
|
|
Balance as of December 31, 2011
|
|
$
|
69
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
|
(12)
|
|
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
|
|
|
|
|
Relating to Assets Still Held at the Reporting Date (a)
|
|
|
3
|
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
|
1
|
|
Purchases, Issuances and Settlements (c)
|
|
|
16
|
|
Transfers into Level 3 (d) (f)
|
|
|
17
|
|
Transfers out of Level 3 (e) (f)
|
|
|
(12)
|
|
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
|
|
10
|
|
Balance as of March 31, 2012
|
|
$
|
92
|
|
|
|
Net Risk Management
|
|
Three Months Ended March 31, 2011
|
|
Assets (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
|
(a)
|
Included in revenues on our 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 our condensed statements of income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
Type of Debt
|
|
March 31, 2012
|
|
December 31, 2011
|
||
|
|
(in millions)
|
||||
Senior Unsecured Notes
|
|
$
|
11,862
|
|
$
|
11,737
|
Pollution Control Bonds
|
|
|
2,062
|
|
|
2,112
|
Notes Payable
|
|
|
428
|
|
|
402
|
Securitization Bonds
|
|
|
2,389
|
|
|
1,688
|
Junior Subordinated Debentures
|
|
|
315
|
|
|
315
|
Spent Nuclear Fuel Obligation (a)
|
|
|
265
|
|
|
265
|
Other Long-term Debt
|
|
|
31
|
|
|
29
|
Fair Value of Interest Rate Hedges
|
|
|
7
|
|
|
7
|
Unamortized Discount, Net
|
|
|
(39)
|
|
|
(39)
|
Total Long-term Debt Outstanding
|
|
|
17,320
|
|
|
16,516
|
Long-term Debt Due Within One Year
|
|
|
1,980
|
|
|
1,433
|
Long-term Debt
|
|
$
|
15,340
|
|
$
|
15,083
|
(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 were $308 million at both March 31, 2012 and December 31, 2011 and are included in Spent Nuclear Fuel and Decommissioning Trusts on our condensed balance sheets.
|
|
|
|
|
|
Principal
|
|
|
Interest
|
|
|
|
Company
|
|
Type of Debt
|
|
Amount
|
|
|
Rate
|
|
Due Date
|
||
Issuances:
|
|
|
(in millions)
|
|
(%)
|
|
|
||||
PSO
|
|
Notes Payable
|
|
$
|
2
|
|
|
3.00
|
|
2027
|
|
SWEPCo
|
|
Senior Unsecured Notes
|
|
|
275
|
|
|
3.55
|
|
2022
|
|
SWEPCo
|
|
Notes Payable
|
|
|
65
|
|
|
4.58
|
|
2032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Registrant:
|
|
|
|
|
|
|
|
|
|
|
|
TCC
|
|
Securitization Bonds
|
|
|
312
|
|
|
2.845
|
|
2024
|
|
TCC
|
|
Securitization Bonds
|
|
|
308
|
|
|
0.88
|
|
2017
|
|
TCC
|
|
Securitization Bonds
|
|
|
180
|
|
|
1.976
|
|
2020
|
|
Total Issuances
|
|
|
|
$
|
1,142
|
(a)
|
|
|
|
|
(a)
|
Amount indicated on the statement of cash flows of $1,132 million is net of issuance costs and premium or discount.
|
|
|
|
|
|
Principal
|
|
|
Interest
|
|
|
|
Company
|
|
Type of Debt
|
|
Amount Paid
|
|
|
Rate
|
|
Due Date
|
||
Retirements and
|
|
|
(in millions)
|
|
(%)
|
|
|
||||
|
Principal Payments:
|
|
|
|
|
|
|
|
|
|
|
APCo
|
|
Pollution Control Bonds
|
|
$
|
30
|
|
|
6.05
|
|
2024
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
20
|
|
|
5.00
|
|
2021
|
|
I&M
|
|
Notes Payable
|
|
|
6
|
|
|
Variable
|
|
2016
|
|
I&M
|
|
Notes Payable
|
|
|
4
|
|
|
2.12
|
|
2016
|
|
I&M
|
|
Notes Payable
|
|
|
6
|
|
|
Variable
|
|
2015
|
|
OPCo
|
|
Senior Unsecured Notes
|
|
|
150
|
|
|
Variable
|
|
2012
|
|
SWEPCo
|
|
Notes Payable
|
|
|
20
|
|
|
7.03
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Registrant:
|
|
|
|
|
|
|
|
|
|
|
|
AEP Subsidiaries
|
|
Notes Payable
|
|
|
4
|
|
|
Variable
|
|
2017
|
|
AEP Subsidiaries
|
|
Notes Payable
|
|
|
1
|
|
|
7.59-8.03
|
|
2026
|
|
TCC
|
|
Securitization Bonds
|
|
|
63
|
|
|
4.98
|
|
2013
|
|
TCC
|
|
Securitization Bonds
|
|
|
35
|
|
|
5.96
|
|
2013
|
|
Total Retirements and
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Payments
|
|
|
|
$
|
339
|
|
|
|
|
|
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||
|
|
|
Outstanding
|
|
Interest
|
|
Outstanding
|
|
Interest
|
||||
Type of Debt
|
Amount
|
Rate (a)
|
|
Amount
|
Rate (a)
|
||||||||
|
|
(in millions)
|
|
|
|
|
(in millions)
|
|
|
|
|||
Securitized Debt for Receivables (b)
|
|
$
|
665
|
|
0.26
|
%
|
|
$
|
666
|
|
0.27
|
%
|
|
Commercial Paper
|
|
|
385
|
|
0.46
|
%
|
|
|
967
|
|
0.51
|
%
|
|
Line of Credit – Sabine (c)
|
|
|
-
|
|
-
|
%
|
|
|
17
|
|
1.79
|
%
|
|
Total Short-term Debt
|
|
$
|
1,050
|
|
|
|
|
$
|
1,650
|
|
|
|
(b)
|
Amount of securitized debt for receivables as accounted for under the ''Transfers and Servicing'' accounting guidance.
|
(c)
|
This line of credit does not reduce available liquidity under AEP's credit facilities.
|
|
|
|
Three Months Ended
|
|
||||
|
|
|
March 31,
|
|
||||
|
|
|
2012
|
|
2011
|
|
||
|
|
(dollars in millions)
|
|
|||||
Effective Interest Rates on Securitization of Accounts Receivable
|
|
|
0.26
|
%
|
|
0.31
|
%
|
|
Net Uncollectible Accounts Receivable Written Off
|
|
$
|
8
|
|
$
|
11
|
|
|
|
|
March 31,
|
|
December 31,
|
||
|
|
|
2012
|
|
2011
|
||
|
|
|
(in millions)
|
||||
Accounts Receivable Retained Interest and Pledged as Collateral
|
|
|
|
|
|
|
|
|
Less Uncollectible Accounts
|
|
$
|
877
|
|
$
|
902
|
Total Principal Outstanding
|
|
|
665
|
|
|
666
|
|
Delinquent Securitized Accounts Receivable
|
|
|
36
|
|
|
38
|
|
Bad Debt Reserves Related to Securitization/Sale of Accounts Receivable
|
|
|
19
|
|
|
18
|
|
Unbilled Receivables Related to Securitization/Sale of Accounts Receivable
|
|
|
323
|
|
|
370
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in millions of KWHs)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
3,450
|
|
|
3,959
|
|
Commercial
|
|
1,626
|
|
|
1,698
|
|
Industrial
|
|
2,604
|
|
|
2,619
|
|
Miscellaneous
|
|
202
|
|
|
210
|
Total Retail
|
|
7,882
|
|
|
8,486
|
|
|
|
|
|
|
|
|
Wholesale
|
|
1,381
|
|
|
1,827
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
9,263
|
|
|
10,313
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
921
|
|
|
1,330
|
|
Normal - Heating (b)
|
|
1,343
|
|
|
1,337
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
26
|
|
|
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 2012 Compared to First Quarter of 2011
|
Reconciliation of First Quarter of 2011 to First Quarter of 2012
|
|||||||
Net Income
|
|||||||
(in millions)
|
|||||||
|
|
|
|
|
|
|
|
First Quarter of 2011
|
|
|
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
|
|
Retail Margins
|
|
|
|
|
|
42
|
|
Off-system Sales
|
|
|
|
|
|
(3)
|
|
Transmission Revenues
|
|
|
|
|
|
2
|
|
Other Revenues
|
|
|
|
|
|
(2)
|
|
Total Change in Gross Margin
|
|
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
|
|
Other Operation and Maintenance
|
|
|
|
|
|
25
|
|
Depreciation and Amortization
|
|
|
|
|
|
(11)
|
|
Carrying Costs Income
|
|
|
|
|
|
3
|
|
Interest Expense
|
|
|
|
|
|
2
|
|
Total Change in Expenses and Other
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
(22)
|
|
|
|
|
|
|
|
|
|
First Quarter of 2012
|
|
|
|
|
$
|
75
|
·
|
Retail Margins increased $42 million primarily due to the following:
|
||
·
|
A $25 million increase due to lower capacity settlement expenses under the Interconnection Agreement net of recovery in West Virginia.
|
||
·
|
A $22 million increase due to higher base rates in Virginia and West Virginia.
|
||
·
|
A $15 million increase in other variable electric generation expenses.
|
||
These increases were partially offset by:
|
|||
·
|
A $17 million decrease in residential and commercial margins primarily due to lower non-weather related usage.
|
||
·
|
A $13 million decrease in weather-related usage primarily due to a 33% decrease in heating degree days.
|
||
·
|
Margins from Off-system Sales decreased $3 million primarily due to lower physical sales volumes and lower trading and marketing margins.
|
·
|
Other Operation and Maintenance expenses decreased $25 million primarily due to the following:
|
|||
·
|
A $41 million decrease due to the first quarter 2011 write-off of a portion of the West Virginia share of the Mountaineer Carbon Capture and Storage Product Validation Facility as denied for recovery by the WVPSC in March 2011.
|
|||
·
|
An $8 million decrease due to recording an increase in under-recovery of transmission costs for the Virginia Transmission Rate Adjustment Clause.
|
|||
These decreases were partially offset by:
|
||||
·
|
A $32 million increase due to the first quarter 2011 deferral of 2009 costs related to storms and the 2010 cost reduction initiatives as allowed by the WVPSC in 2011.
|
|||
·
|
Depreciation and Amortization expenses increased $11 million primarily due to:
|
|||
·
|
A $6 million increase in depreciation as a result of an increase in depreciation rates in Virginia effective February 1, 2012.
|
|||
·
|
A $5 million increase in amortization mainly due to current year amortization as a result of the Virginia E&R surcharge and the Virginia Environmental Rate Adjustment Clause, both effective February 2012.
|
|||
·
|
Carrying Costs Income increased $3 million primarily due to carrying charges on the Dresden Plant resulting from the Virginia Generation Rate Adjustment Clause and the West Virginia Expanded Net Energy Charge.
|
|||
·
|
Income Tax Expense increased $22 million primarily due to an increase in pretax book income.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||
(in thousands)
|
|||||||
(Unaudited)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
||
REVENUES
|
|
|
|
|
|
||
Electric Generation, Transmission and Distribution
|
|
$
|
738,599
|
|
$
|
751,012
|
|
Sales to AEP Affiliates
|
|
|
64,301
|
|
|
78,691
|
|
Other Revenues
|
|
|
2,576
|
|
|
2,117
|
|
TOTAL REVENUES
|
|
|
805,476
|
|
|
831,820
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Fuel and Other Consumables Used for Electric Generation
|
|
|
186,884
|
|
|
180,581
|
|
Purchased Electricity for Resale
|
|
|
65,356
|
|
|
69,218
|
|
Purchased Electricity from AEP Affiliates
|
|
|
156,017
|
|
|
224,189
|
|
Other Operation
|
|
|
74,319
|
|
|
113,276
|
|
Maintenance
|
|
|
46,335
|
|
|
32,293
|
|
Depreciation and Amortization
|
|
|
80,413
|
|
|
69,099
|
|
Taxes Other Than Income Taxes
|
|
|
26,962
|
|
|
27,103
|
|
TOTAL EXPENSES
|
|
|
636,286
|
|
|
715,759
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
|
169,190
|
|
|
116,061
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
Interest Income
|
|
|
343
|
|
|
320
|
|
Carrying Costs Income
|
|
|
7,785
|
|
|
3,439
|
|
Allowance for Equity Funds Used During Construction
|
|
|
513
|
|
|
883
|
|
Interest Expense
|
|
|
(51,307)
|
|
|
(52,939)
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX EXPENSE
|
|
|
126,524
|
|
|
67,764
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
51,213
|
|
|
28,784
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
75,311
|
|
|
38,980
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividend Requirements Including Capital Stock Expense
|
|
|
-
|
|
|
200
|
|
|
|
|
|
|
|
|
|
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
75,311
|
|
$
|
38,780
|
|
|
|||||||
The common stock of APCo is wholly-owned by AEP.
|
|||||||
|
|||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
||||||
2012 |
2011
|
|||||||
NET INCOME
|
$ | 75,311 | $ | 38,980 | ||||
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
||||||||
Cash Flow Hedges, Net of Tax of $290 in 2012 and $275 in 2011
|
(539 | ) | 511 | |||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $484 in 2012
|
||||||||
and $418 in 2011
|
900 | 777 | ||||||
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
361 | 1,288 | ||||||
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
$ | 75,672 | $ | 40,268 | ||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
||||||||
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
||
|
|
|
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
|||||
|
|
|
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Total
|
|||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
|
|
|
|
|
38,980
|
|
|
|
|
|
38,980
|
|||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
1,288
|
|
|
1,288
|
|||
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
MARCH 31, 2011
|
|
$
|
260,458
|
|
$
|
1,475,499
|
|
$
|
1,135,028
|
|
$
|
(46,735)
|
|
$
|
2,824,250
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
DECEMBER 31, 2011
|
|
$
|
260,458
|
|
$
|
1,573,752
|
|
$
|
1,160,747
|
|
$
|
(58,543)
|
|
$
|
2,936,414
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Dividends
|
|
|
|
|
|
|
|
|
(50,000)
|
|
|
|
|
|
(50,000)
|
|||
SUBTOTAL – COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,886,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
|
|
|
|
|
75,311
|
|
|
|
|
|
75,311
|
|||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
361
|
|
|
361
|
|||
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
MARCH 31, 2012
|
|
$
|
260,458
|
|
$
|
1,573,752
|
|
$
|
1,186,058
|
|
$
|
(58,182)
|
|
$
|
2,962,086
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
|
|
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||
ASSETS
|
||||||||||||||||
March 31, 2012 and December 31, 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
|
2012
|
|
2011
|
||||||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
|
$
|
1,803
|
|
$
|
2,317
|
||||||||||
Advances to Affiliates
|
|
|
22,406
|
|
|
22,008
|
||||||||||
Accounts Receivable:
|
|
|
|
|
|
|
||||||||||
|
Customers
|
|
|
147,909
|
|
|
158,382
|
|||||||||
|
Affiliated Companies
|
|
|
71,831
|
|
|
136,194
|
|||||||||
|
Accrued Unbilled Revenues
|
|
|
45,808
|
|
|
68,427
|
|||||||||
|
Miscellaneous
|
|
|
2,654
|
|
|
5,505
|
|||||||||
|
Allowance for Uncollectible Accounts
|
|
|
(5,568)
|
|
|
(5,289)
|
|||||||||
|
|
Total Accounts Receivable
|
|
|
262,634
|
|
|
363,219
|
||||||||
Fuel
|
|
|
188,148
|
|
|
143,931
|
||||||||||
Materials and Supplies
|
|
|
102,644
|
|
|
101,724
|
||||||||||
Risk Management Assets
|
|
|
49,520
|
|
|
39,645
|
||||||||||
Accrued Tax Benefits
|
|
|
2,025
|
|
|
7,715
|
||||||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
|
43,773
|
|
|
41,105
|
||||||||||
Prepayments and Other Current Assets
|
|
|
21,707
|
|
|
21,745
|
||||||||||
TOTAL CURRENT ASSETS
|
|
|
694,660
|
|
|
743,409
|
||||||||||
|
|
|
|
|
|
|
||||||||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
||||||||||
Electric:
|
|
|
|
|
|
|
||||||||||
|
Generation
|
|
|
5,547,165
|
|
|
5,194,967
|
|||||||||
|
Transmission
|
|
|
2,002,348
|
|
|
1,943,969
|
|||||||||
|
Distribution
|
|
|
2,868,847
|
|
|
2,845,405
|
|||||||||
Other Property, Plant and Equipment
|
|
|
368,030
|
|
|
357,326
|
||||||||||
Construction Work in Progress
|
|
|
193,637
|
|
|
565,841
|
||||||||||
Total Property, Plant and Equipment
|
|
|
10,980,027
|
|
|
10,907,508
|
||||||||||
Accumulated Depreciation and Amortization
|
|
|
3,048,168
|
|
|
2,994,016
|
||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
|
7,931,859
|
|
|
7,913,492
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
||||||||||
Regulatory Assets
|
|
|
1,458,032
|
|
|
1,481,193
|
||||||||||
Long-term Risk Management Assets
|
|
|
46,049
|
|
|
39,226
|
||||||||||
Deferred Charges and Other Noncurrent Assets
|
|
|
124,349
|
|
|
122,187
|
||||||||||
TOTAL OTHER NONCURRENT ASSETS
|
|
|
1,628,430
|
|
|
1,642,606
|
||||||||||
|
|
|
|
|
|
|
||||||||||
TOTAL ASSETS
|
|
$
|
10,254,949
|
|
$
|
10,299,507
|
||||||||||
|
|
|
|
|
|
|
||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||
March 31, 2012 and December 31, 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
|
2012
|
|
2011
|
||||||||||||
|
|
|
(in thousands)
|
|||||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
||||||||||
Advances from Affiliates
|
|
$
|
184,040
|
|
$
|
198,248
|
||||||||||
Accounts Payable:
|
|
|
|
|
|
|
||||||||||
General
|
|
|
173,411
|
|
|
186,612
|
||||||||||
Affiliated Companies
|
|
|
92,497
|
|
|
137,376
|
||||||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
|
545,026
|
|
|
594,525
|
||||||||||
Risk Management Liabilities
|
|
|
33,047
|
|
|
26,606
|
||||||||||
Customer Deposits
|
|
|
62,044
|
|
|
61,690
|
||||||||||
Deferred Income Taxes
|
|
|
20,757
|
|
|
14,255
|
||||||||||
Accrued Taxes
|
|
|
79,294
|
|
|
63,422
|
||||||||||
Accrued Interest
|
|
|
60,611
|
|
|
57,230
|
||||||||||
Other Current Liabilities
|
|
|
81,997
|
|
|
105,646
|
||||||||||
TOTAL CURRENT LIABILITIES
|
|
|
1,332,724
|
|
|
1,445,610
|
||||||||||
|
|
|
|
|
|
|
||||||||||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
||||||||||
Long-term Debt – Nonaffiliated
|
|
|
3,131,908
|
|
|
3,131,726
|
||||||||||
Long-term Risk Management Liabilities
|
|
|
21,971
|
|
|
12,923
|
||||||||||
Deferred Income Taxes
|
|
|
1,759,245
|
|
|
1,736,180
|
||||||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
590,453
|
|
|
576,792
|
||||||||||
Employee Benefits and Pension Obligations
|
|
|
298,177
|
|
|
302,182
|
||||||||||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
158,385
|
|
|
157,680
|
||||||||||
TOTAL NONCURRENT LIABILITIES
|
|
|
5,960,139
|
|
|
5,917,483
|
||||||||||
|
|
|
|
|
|
|
||||||||||
TOTAL LIABILITIES
|
|
|
7,292,863
|
|
|
7,363,093
|
||||||||||
|
|
|
|
|
|
|
||||||||||
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
|
|
|
1,573,752
|
|
|
1,573,752
|
||||||||||
Retained Earnings
|
|
|
1,186,058
|
|
|
1,160,747
|
||||||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
(58,182)
|
|
|
(58,543)
|
||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
|
2,962,086
|
|
|
2,936,414
|
||||||||||
|
|
|
|
|
|
|
||||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|
$
|
10,254,949
|
|
$
|
10,299,507
|
||||||||||
|
|
|
|
|
|
|
||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
2012
|
2011
|
||||||
OPERATING ACTIVITIES
|
|
|
||||||
Net Income
|
$ | 75,311 | $ | 38,980 | ||||
Adjustments to Reconcile Net Income to Net Cash Flows from
|
||||||||
Operating Activities:
|
||||||||
Depreciation and Amortization
|
80,413 | 69,099 | ||||||
Deferred Income Taxes
|
27,343 | 60,802 | ||||||
Carrying Costs Income
|
(7,785 | ) | (3,439 | ) | ||||
Allowance for Equity Funds Used During Construction
|
(513 | ) | (883 | ) | ||||
Mark-to-Market of Risk Management Contracts
|
(2,426 | ) | (1,553 | ) | ||||
Fuel Over/Under-Recovery, Net
|
24,741 | (9,857 | ) | |||||
Change in Other Noncurrent Assets
|
(11,020 | ) | 10,237 | |||||
Change in Other Noncurrent Liabilities
|
8,866 | 12,013 | ||||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
100,202 | 109,662 | ||||||
Fuel, Materials and Supplies
|
(45,137 | ) | 61,846 | |||||
Accounts Payable
|
(24,787 | ) | (71,056 | ) | ||||
Accrued Taxes, Net
|
22,142 | (32,472 | ) | |||||
Other Current Assets
|
(269 | ) | 6,505 | |||||
Other Current Liabilities
|
(16,921 | ) | 957 | |||||
Net Cash Flows from Operating Activities
|
230,160 | 250,841 | ||||||
|
||||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(117,359 | ) | (113,132 | ) | ||||
Change in Advances to Affiliates, Net
|
(398 | ) | (383,537 | ) | ||||
Other Investing Activities
|
2,295 | 4,047 | ||||||
Net Cash Flows Used for Investing Activities
|
(115,462 | ) | (492,622 | ) | ||||
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Long-term Debt – Nonaffiliated
|
- | 640,770 | ||||||
Change in Advances from Affiliates, Net
|
(14,208 | ) | (128,331 | ) | ||||
Retirement of Long-term Debt – Nonaffiliated
|
(49,506 | ) | (229,655 | ) | ||||
Retirement of Cumulative Preferred Stock
|
- | (8 | ) | |||||
Principal Payments for Capital Lease Obligations
|
(1,637 | ) | (1,876 | ) | ||||
Dividends Paid on Common Stock
|
(50,000 | ) | (37,500 | ) | ||||
Dividends Paid on Cumulative Preferred Stock
|
- | (200 | ) | |||||
Other Financing Activities
|
139 | 14 | ||||||
Net Cash Flows from (Used for) Financing Activities
|
(115,212 | ) | 243,214 | |||||
|
||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(514 | ) | 1,433 | |||||
Cash and Cash Equivalents at Beginning of Period
|
2,317 | 951 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 1,803 | $ | 2,384 | ||||
|
||||||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$ | 46,159 | $ | 36,992 | ||||
Net Cash Paid (Received) for Income Taxes
|
(2,984 | ) | 629 | |||||
Noncash Acquisitions Under Capital Leases
|
1,037 | 368 | ||||||
Government Grants Included in Accounts Receivable at March 31,
|
- | 572 | ||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
30,998 | 38,071 | ||||||
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 4
|
Business Segments
|
Note 5
|
Derivatives and Hedging
|
Note 6
|
Fair Value Measurements
|
Note 7
|
Income Taxes
|
Note 8
|
Financing Activities
|
Note 9
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in millions of KWHs)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
1,569
|
|
|
1,836
|
|
Commercial
|
|
1,165
|
|
|
1,263
|
|
Industrial
|
|
1,833
|
|
|
1,844
|
|
Miscellaneous
|
|
23
|
|
|
23
|
Total Retail
|
|
4,590
|
|
|
4,966
|
|
|
|
|
|
|
|
|
Wholesale
|
|
1,961
|
|
|
2,096
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
6,551
|
|
|
7,062
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,622
|
|
|
2,392
|
|
Normal - Heating (b)
|
|
2,184
|
|
|
2,175
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
29
|
|
|
-
|
|
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 2012 Compared to First Quarter of 2011
|
Reconciliation of First Quarter of 2011 to First Quarter of 2012
|
|||||||
Net Income
|
|||||||
(in millions)
|
|||||||
|
|
|
|
|
|
|
|
First Quarter of 2011
|
|
|
|
|
$
|
45
|
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
|
|
Retail Margins
|
|
|
|
|
|
(31)
|
|
FERC Municipals and Cooperatives
|
|
|
|
|
|
1
|
|
Off-system Sales
|
|
|
|
|
|
(4)
|
|
Transmission Revenues
|
|
|
|
|
|
1
|
|
Other Revenues
|
|
|
|
|
|
7
|
|
Total Change in Gross Margin
|
|
|
|
|
|
(26)
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
|
|
Other Operation and Maintenance
|
|
|
|
|
|
7
|
|
Total Change in Expenses and Other
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
First Quarter of 2012
|
|
|
|
|
$
|
39
|
·
|
Retail Margins decreased $31 million primarily due to the following:
|
||
·
|
A $28 million decrease in weather-related usage primarily due to a 32% decrease in heating degree days.
|
||
·
|
A $16 million decrease in capacity settlement revenues under the Interconnection Agreement.
|
||
These decreases were partially offset by:
|
|||
·
|
A $16 million increase due to rate relief driven mainly by higher PJM rider revenue, interim Michigan base rate increases and higher Indiana Demand Side Management (DSM) revenue. DSM and PJM revenues have corresponding increases to riders/trackers recognized in expense items.
|
||
·
|
Margins from Off-System Sales decreased $4 million primarily due to lower physical sales volumes and lower trading and marketing margins.
|
||
·
|
Other Revenues increased $7 million primarily due to I&M’s River Transportation Division (RTD) revenues from barging activities. The increase in RTD revenue was offset by a corresponding increase in Other Operation and Maintenance expenses from barging activities as discussed below.
|
·
|
Other Operation and Maintenance expenses decreased $7 million primarily due to the following:
|
||
·
|
An $8 million decrease due to lower steam maintenance.
|
||
·
|
A $4 million decrease in distribution primarily due to decreased overhead line expenses.
|
||
These decreases were partially offset by:
|
|||
·
|
A $5 million increase in RTD expenses from barging activities. The increase in RTD expense was offset by a corresponding increase in Other Revenues from barging activities as discussed above.
|
||
|
·
|
Income Tax Expense decreased $13 million primarily due to a decrease in pretax book income, the regulatory accounting treatment of state income taxes and federal income tax adjustments recorded in 2011 related to prior year tax returns.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2012
|
|
2011
|
||||||||||||
REVENUES
|
|
|
|
|
|
|||||||||||
Electric Generation, Transmission and Distribution
|
|
$
|
436,027
|
|
$
|
456,862
|
||||||||||
Sales to AEP Affiliates
|
|
|
75,915
|
|
|
74,868
|
||||||||||
Other Revenues - Affiliated
|
|
|
30,711
|
|
|
24,331
|
||||||||||
Other Revenues - Nonaffiliated
|
|
|
3,554
|
|
|
4,431
|
||||||||||
TOTAL REVENUES
|
|
|
546,207
|
|
|
560,492
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES
|
|
|
|
|
|
|
||||||||||
Fuel and Other Consumables Used for Electric Generation
|
|
|
112,370
|
|
|
115,062
|
||||||||||
Purchased Electricity for Resale
|
|
|
35,910
|
|
|
29,292
|
||||||||||
Purchased Electricity from AEP Affiliates
|
|
|
87,953
|
|
|
79,584
|
||||||||||
Other Operation
|
|
|
135,216
|
|
|
133,211
|
||||||||||
Maintenance
|
|
|
42,265
|
|
|
51,000
|
||||||||||
Depreciation and Amortization
|
|
|
33,979
|
|
|
34,087
|
||||||||||
Taxes Other Than Income Taxes
|
|
|
22,189
|
|
|
22,262
|
||||||||||
TOTAL EXPENSES
|
|
|
469,882
|
|
|
464,498
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
OPERATING INCOME
|
|
|
76,325
|
|
|
95,994
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other Income (Expense):
|
|
|
|
|
|
|
||||||||||
Interest Income
|
|
|
1,251
|
|
|
696
|
||||||||||
Allowance for Equity Funds Used During Construction
|
|
|
3,011
|
|
|
3,199
|
||||||||||
Interest Expense
|
|
|
(25,053)
|
|
|
(25,191)
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
|
|
55,534
|
|
|
74,698
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income Tax Expense
|
|
|
16,313
|
|
|
29,271
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCOME
|
|
|
39,221
|
|
|
45,427
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Preferred Stock Dividend Requirements
|
|
|
-
|
|
|
85
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
39,221
|
|
$
|
45,342
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
The common stock of I&M is wholly-owned by AEP.
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|||||||
For the Three Months Ended March 31, 2012 and 2011
|
|
|||||||
(in thousands)
|
|
|||||||
(Unaudited)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
||
NET INCOME
|
|
$
|
39,221
|
|
$
|
45,427
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME, NET OF TAXES
|
|
|
|
|
|
|
|
|
Cash Flow Hedges, Net of Tax of $1,322 in 2012 and $286 in 2011
|
|
|
2,456
|
|
|
531
|
|
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $150 in 2012
|
|
|
|
|
|
|
|
|
|
and $128 in 2011
|
|
|
279
|
|
|
237
|
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER COMPREHENSIVE INCOME
|
|
|
2,735
|
|
|
768
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
41,956
|
|
$
|
46,195
|
|
|
|
|
|
|
|
|
|
|
|
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
||||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
Accumulated
|
|
|||||||||||||||
|
|
|
|
Other
|
|
|||||||||||||||
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|
|||||||||||||||
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||
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 | |||||||||||||||||||
|
||||||||||||||||||||
NET INCOME
|
45,427 | 45,427 | ||||||||||||||||||
OTHER COMPREHENSIVE INCOME
|
768 | 768 | ||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2011
|
$ | 56,584 | $ | 981,294 | $ | 703,952 | $ | (20,121 | ) | $ | 1,721,709 | |||||||||
|
||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – DECEMBER 31, 2011
|
$ | 56,584 | $ | 980,896 | $ | 751,721 | $ | (28,221 | ) | $ | 1,760,980 | |||||||||
|
||||||||||||||||||||
Common Stock Dividends
|
(12,500 | ) | (12,500 | ) | ||||||||||||||||
SUBTOTAL – COMMON
|
||||||||||||||||||||
SHAREHOLDER'S EQUITY
|
1,748,480 | |||||||||||||||||||
|
||||||||||||||||||||
NET INCOME
|
39,221 | 39,221 | ||||||||||||||||||
OTHER COMPREHENSIVE INCOME
|
2,735 | 2,735 | ||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||||
EQUITY – MARCH 31, 2012
|
$ | 56,584 | $ | 980,896 | $ | 778,442 | $ | (25,486 | ) | $ | 1,790,436 | |||||||||
|
||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||||||||||||
ASSETS
|
|||||||||||||||||||
March 31, 2012 and December 31, 2011
|
|||||||||||||||||||
(in thousands)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|
2012
|
|
2011
|
|||||||||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
|||||||||||||
Cash and Cash Equivalents
|
|
$
|
643
|
|
$
|
1,020
|
|||||||||||||
Advances to Affiliates
|
|
|
143,962
|
|
|
95,714
|
|||||||||||||
Accounts Receivable:
|
|
|
|
|
|
|
|||||||||||||
|
Customers
|
|
|
60,784
|
|
|
72,461
|
||||||||||||
|
Affiliated Companies
|
|
|
57,309
|
|
|
90,980
|
||||||||||||
|
Accrued Unbilled Revenues
|
|
|
15,570
|
|
|
14,780
|
||||||||||||
|
Miscellaneous
|
|
|
37,302
|
|
|
22,685
|
||||||||||||
|
Allowance for Uncollectible Accounts
|
|
|
(1,948)
|
|
|
(1,750)
|
||||||||||||
|
|
Total Accounts Receivable
|
|
|
169,017
|
|
|
199,156
|
|||||||||||
Fuel
|
|
|
71,800
|
|
|
52,979
|
|||||||||||||
Materials and Supplies
|
|
|
170,993
|
|
|
175,924
|
|||||||||||||
Risk Management Assets
|
|
|
45,019
|
|
|
32,152
|
|||||||||||||
Accrued Tax Benefits
|
|
|
21,318
|
|
|
38,425
|
|||||||||||||
Deferred Cook Plant Fire Costs
|
|
|
64,291
|
|
|
63,809
|
|||||||||||||
Prepayments and Other Current Assets
|
|
|
45,137
|
|
|
35,395
|
|||||||||||||
TOTAL CURRENT ASSETS
|
|
|
732,180
|
|
|
694,574
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|||||||||||||
Electric:
|
|
|
|
|
|
|
|||||||||||||
|
Generation
|
|
|
3,922,767
|
|
|
3,932,472
|
||||||||||||
|
Transmission
|
|
|
1,233,154
|
|
|
1,224,786
|
||||||||||||
|
Distribution
|
|
|
1,494,192
|
|
|
1,481,608
|
||||||||||||
Other Property, Plant and Equipment (including nuclear fuel and coal mining)
|
|
|
693,440
|
|
|
709,558
|
|||||||||||||
Construction Work in Progress
|
|
|
253,831
|
|
|
236,096
|
|||||||||||||
Total Property, Plant and Equipment
|
|
|
7,597,384
|
|
|
7,584,520
|
|||||||||||||
Accumulated Depreciation, Depletion and Amortization
|
|
|
3,201,638
|
|
|
3,179,920
|
|||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
|
4,395,746
|
|
|
4,404,600
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
|||||||||||||
Regulatory Assets
|
|
|
600,515
|
|
|
602,979
|
|||||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
1,661,580
|
|
|
1,591,732
|
|||||||||||||
Long-term Risk Management Assets
|
|
|
34,563
|
|
|
29,362
|
|||||||||||||
Deferred Charges and Other Noncurrent Assets
|
|
|
75,171
|
|
|
69,309
|
|||||||||||||
TOTAL OTHER NONCURRENT ASSETS
|
|
|
2,371,829
|
|
|
2,293,382
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
TOTAL ASSETS
|
|
$
|
7,499,755
|
|
$
|
7,392,556
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||||||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|||||||||||||||||||
March 31, 2012 and December 31, 2011
|
|||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|
|
|
2012
|
|
2011
|
|||||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
|||||||||||||
Accounts Payable:
|
|
|
|
|
|
|
|||||||||||||
|
General
|
|
$
|
108,485
|
|
$
|
113,063
|
||||||||||||
|
Affiliated Companies
|
|
|
64,902
|
|
|
81,102
|
||||||||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
|
|
|
|
|
|||||||||||||
|
(March 31, 2012 and December 31, 2011 amounts include $99,783 and
|
|
|
|
|
|
|
||||||||||||
|
$101,620, respectively, related to DCC Fuel)
|
|
|
277,284
|
|
|
279,075
|
||||||||||||
Risk Management Liabilities
|
|
|
29,265
|
|
|
16,980
|
|||||||||||||
Customer Deposits
|
|
|
30,715
|
|
|
30,696
|
|||||||||||||
Accrued Taxes
|
|
|
78,911
|
|
|
65,233
|
|||||||||||||
Accrued Interest
|
|
|
22,578
|
|
|
27,798
|
|||||||||||||
Other Current Liabilities
|
|
|
102,405
|
|
|
117,879
|
|||||||||||||
TOTAL CURRENT LIABILITIES
|
|
|
714,545
|
|
|
731,826
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
|||||||||||||
Long-term Debt – Nonaffiliated
|
|
|
1,764,457
|
|
|
1,778,600
|
|||||||||||||
Long-term Risk Management Liabilities
|
|
|
15,455
|
|
|
18,871
|
|||||||||||||
Deferred Income Taxes
|
|
|
952,319
|
|
|
925,712
|
|||||||||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
946,896
|
|
|
875,202
|
|||||||||||||
Asset Retirement Obligations
|
|
|
1,026,191
|
|
|
1,013,122
|
|||||||||||||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
289,456
|
|
|
288,243
|
|||||||||||||
TOTAL NONCURRENT LIABILITIES
|
|
|
4,994,774
|
|
|
4,899,750
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
TOTAL LIABILITIES
|
|
|
5,709,319
|
|
|
5,631,576
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
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
|
|
|
980,896
|
|
|
980,896
|
|||||||||||||
Retained Earnings
|
|
|
778,442
|
|
|
751,721
|
|||||||||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
(25,486)
|
|
|
(28,221)
|
|||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
|
1,790,436
|
|
|
1,760,980
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|
$
|
7,499,755
|
|
$
|
7,392,556
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
2012
|
|
2011
|
|||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|||||||||||||||
Net Income
|
|
$
|
39,221
|
|
$
|
45,427
|
|||||||||||||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|||||||||||||||
|
|
Depreciation and Amortization
|
|
|
33,979
|
|
|
34,087
|
|||||||||||||
|
|
Deferred Income Taxes
|
|
|
26,638
|
|
|
25,087
|
|||||||||||||
|
|
Amortization (Deferral) of Incremental Nuclear Refueling Outage Expenses, Net
|
|
|
(4,878)
|
|
|
11,616
|
|||||||||||||
|
|
Allowance for Equity Funds Used During Construction
|
|
|
(3,011)
|
|
|
(3,199)
|
|||||||||||||
|
|
Mark-to-Market of Risk Management Contracts
|
|
|
(5,624)
|
|
|
(658)
|
|||||||||||||
|
|
Amortization of Nuclear Fuel
|
|
|
33,585
|
|
|
34,240
|
|||||||||||||
|
|
Fuel Over/Under-Recovery, Net
|
|
|
(3,493)
|
|
|
4,156
|
|||||||||||||
|
|
Change in Other Noncurrent Assets
|
|
|
(9,931)
|
|
|
(6,066)
|
|||||||||||||
|
|
Change in Other Noncurrent Liabilities
|
|
|
32,710
|
|
|
13,327
|
|||||||||||||
|
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
|||||||||||||
|
|
|
Accounts Receivable, Net
|
|
|
49,885
|
|
|
97,575
|
||||||||||||
|
|
|
Fuel, Materials and Supplies
|
|
|
(13,890)
|
|
|
8,343
|
||||||||||||
|
|
|
Accounts Payable
|
|
|
(4,269)
|
|
|
(71,206)
|
||||||||||||
|
|
|
Accrued Taxes, Net
|
|
|
30,624
|
|
|
14,479
|
||||||||||||
|
|
|
Other Current Assets
|
|
|
(6,197)
|
|
|
(1,475)
|
||||||||||||
|
|
|
Other Current Liabilities
|
|
|
(23,279)
|
|
|
3,865
|
||||||||||||
Net Cash Flows from Operating Activities
|
|
|
172,070
|
|
|
209,598
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|||||||||||||||
Construction Expenditures
|
|
|
(72,867)
|
|
|
(54,733)
|
|||||||||||||||
Change in Advances to Affiliates, Net
|
|
|
(48,248)
|
|
|
(56,813)
|
|||||||||||||||
Purchases of Investment Securities
|
|
|
(352,877)
|
|
|
(305,945)
|
|||||||||||||||
Sales of Investment Securities
|
|
|
334,400
|
|
|
287,761
|
|||||||||||||||
Acquisitions of Nuclear Fuel
|
|
|
(10,936)
|
|
|
(27,132)
|
|||||||||||||||
Other Investing Activities
|
|
|
8,745
|
|
|
17,029
|
|||||||||||||||
Net Cash Flows Used for Investing Activities
|
|
|
(141,783)
|
|
|
(139,833)
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|||||||||||||||
Issuance of Long-term Debt – Nonaffiliated
|
|
|
-
|
|
|
76,864
|
|||||||||||||||
Change in Advances from Affiliates, Net
|
|
|
-
|
|
|
(42,769)
|
|||||||||||||||
Retirement of Long-term Debt – Nonaffiliated
|
|
|
(16,074)
|
|
|
(82,354)
|
|||||||||||||||
Principal Payments for Capital Lease Obligations
|
|
|
(1,890)
|
|
|
(2,128)
|
|||||||||||||||
Dividends Paid on Common Stock
|
|
|
(12,500)
|
|
|
(18,750)
|
|||||||||||||||
Dividends Paid on Cumulative Preferred Stock
|
|
|
-
|
|
|
(85)
|
|||||||||||||||
Other Financing Activities
|
|
|
(200)
|
|
|
8
|
|||||||||||||||
Net Cash Flows Used for Financing Activities
|
|
|
(30,664)
|
|
|
(69,214)
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
(377)
|
|
|
551
|
|||||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
|
|
1,020
|
|
|
361
|
|||||||||||||||
Cash and Cash Equivalents at End of Period
|
|
$
|
643
|
|
$
|
912
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|||||||||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
29,398
|
|
$
|
28,542
|
|||||||||||||||
Net Cash Paid (Received) for Income Taxes
|
|
|
(23,095)
|
|
|
(1,033)
|
|||||||||||||||
Noncash Acquisitions Under Capital Leases
|
|
|
2,009
|
|
|
693
|
|||||||||||||||
Construction Expenditures Included in Current Liabilities at March 31,
|
|
|
26,957
|
|
|
21,651
|
|||||||||||||||
Acquisition of Nuclear Fuel Included in Current Liabilities at March 31,
|
|
|
-
|
|
|
377
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 4
|
Business Segments
|
Note 5
|
Derivatives and Hedging
|
Note 6
|
Fair Value Measurements
|
Note 7
|
Income Taxes
|
Note 8
|
Financing Activities
|
Note 9
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in millions of KWHs)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
3,879
|
|
|
4,451
|
|
Commercial
|
|
3,236
|
|
|
3,389
|
|
Industrial
|
|
4,721
|
|
|
4,540
|
|
Miscellaneous
|
|
31
|
|
|
35
|
Total Retail (a)
|
|
11,867
|
|
|
12,415
|
|
|
|
|
|
|
|
|
Wholesale
|
|
2,506
|
|
|
2,770
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
14,373
|
|
|
15,185
|
|
|
|
|
|
|
|
|
(a) Includes energy delivered to customers served by OPCo.
|
|
|
|
|
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
1,397
|
|
|
2,073
|
|
Normal - Heating (b)
|
|
1,918
|
|
|
1,903
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
28
|
|
|
1
|
|
Normal - Cooling (b)
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
(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 2012 Compared to First Quarter of 2011
|
Reconciliation of First Quarter of 2011 to First Quarter of 2012
|
|||||||
Net Income
|
|||||||
(in millions)
|
|||||||
|
|
|
|
|
|
|
|
First Quarter of 2011
|
|
|
|
|
$
|
166
|
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
|
|
Retail Margins
|
|
|
|
|
|
(103)
|
|
Off-system Sales
|
|
|
|
|
|
7
|
|
Transmission Revenues
|
|
|
|
|
|
7
|
|
Other Revenues
|
|
|
|
|
|
7
|
|
Total Change in Gross Margin
|
|
|
|
|
|
(82)
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
|
|
Other Operation and Maintenance
|
|
|
|
|
|
53
|
|
Depreciation and Amortization
|
|
|
|
|
|
(1)
|
|
Carrying Costs Income
|
|
|
|
|
|
(8)
|
|
Other Income
|
|
|
|
|
|
1
|
|
Interest Expense
|
|
|
|
|
|
3
|
|
Total Change in Expenses and Other
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
First Quarter of 2012
|
|
|
|
|
$
|
151
|
·
|
Retail Margins decreased $103 million primarily due to the following:
|
||
·
|
A $54 million decrease attributable to customers switching to alternative competitive retail electric service (CRES) providers.
|
||
·
|
A $40 million decrease in capacity settlements under the Interconnection Agreement.
|
||
·
|
A $39 million decrease due to the elimination of POLR charges, effective June 2011, as a result of the October 2011 PUCO remand order.
|
||
·
|
A $23 million decrease in weather-related usage primarily due to a 33% decrease in heating degree days.
|
||
These decreases were partially offset by:
|
|||
·
|
A $37 million increase in rate relief. Of these increases, $8 million relates to riders/trackers which have corresponding increases in other expense items below.
|
||
·
|
Margins from Off-system Sales increased $7 million primarily due to an increase in PJM capacity revenues.
|
||
·
|
Transmission Revenues increased $7 million primarily due to net rate increases in PJM and increased transmission revenues for customers who have switched to alternative CRES providers. The increase in transmission revenues related to CRES providers partially offsets lost revenues included in Retail Margins above.
|
||
·
|
Other Revenues increased $7 million primarily due to sales to Buckeye Power, Inc. to provide backup energy under the Cardinal Station Agreement and revenues from Cook Coal Terminal.
|
·
|
Other Operation and Maintenance expenses decreased $53 million primarily due to the following:
|
||
·
|
A $35 million decrease due to the first quarter 2012 reversal of an obligation to contribute to Partnership with Ohio and Ohio Growth Fund as a result of the PUCO's February 2012 rejection of OPCo's modified stipulation.
|
||
·
|
A $12 million decrease in plant maintenance expenses at various plants.
|
||
·
|
A $7 million decrease in employee-related expenses.
|
||
These decreases were partially offset by:
|
|||
·
|
An $11 million gain from the sale of land in January 2011.
|
||
·
|
Depreciation and Amortization expenses increased $1 million primarily due to the following:
|
||
·
|
A $14 million increase due to shortened depreciable lives for certain generating plants effective December 2011.
|
||
This increase was partially offset by:
|
|||
·
|
A $9 million decrease due to the amortization of a portion of a distribution depreciation reserve as approved by the PUCO in the 2011 Ohio Distribution Base Rate Case.
|
||
·
|
A $5 million decrease in depreciation due to the third quarter 2011 plant impairment of Sporn Unit 5.
|
||
·
|
Carrying Costs Income decreased $8 million primarily due to collections of carrying costs in first quarter 2012 on phase-in FAC deferrals and certain distribution regulatory assets.
|
||
·
|
Income Tax Expense decreased $19 million primarily due to a decrease in pretax book income and audit settlements for previous years.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2012
|
|
2011
|
||||||||||||
REVENUES
|
|
|
|
|
|
|||||||||||
Electric Generation, Transmission and Distribution
|
|
$
|
1,040,831
|
|
$
|
1,130,177
|
||||||||||
Sales to AEP Affiliates
|
|
|
181,757
|
|
|
252,534
|
||||||||||
Other Revenues – Affiliated
|
|
|
9,111
|
|
|
7,018
|
||||||||||
Other Revenues – Nonaffiliated
|
|
|
5,524
|
|
|
4,461
|
||||||||||
TOTAL REVENUES
|
|
|
1,237,223
|
|
|
1,394,190
|
||||||||||
|
|
|
|
|
|
|
||||||||||
EXPENSES
|
|
|
|
|
|
|
||||||||||
Fuel and Other Consumables Used for Electric Generation
|
|
|
369,993
|
|
|
407,396
|
||||||||||
Purchased Electricity for Resale
|
|
|
58,134
|
|
|
68,414
|
||||||||||
Purchased Electricity from AEP Affiliates
|
|
|
88,683
|
|
|
116,451
|
||||||||||
Other Operation
|
|
|
130,342
|
|
|
170,399
|
||||||||||
Maintenance
|
|
|
80,604
|
|
|
93,412
|
||||||||||
Depreciation and Amortization
|
|
|
134,430
|
|
|
133,412
|
||||||||||
Taxes Other Than Income Taxes
|
|
|
105,418
|
|
|
105,310
|
||||||||||
TOTAL EXPENSES
|
|
|
967,604
|
|
|
1,094,794
|
||||||||||
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME
|
|
|
269,619
|
|
|
299,396
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
||||||||||
Interest Income
|
|
|
1,098
|
|
|
458
|
||||||||||
Carrying Costs Income
|
|
|
2,758
|
|
|
10,731
|
||||||||||
Allowance for Equity Funds Used During Construction
|
|
|
1,123
|
|
|
1,203
|
||||||||||
Interest Expense
|
|
|
(54,261)
|
|
|
(57,020)
|
||||||||||
|
|
|
|
|
|
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
|
|
220,337
|
|
|
254,768
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Income Tax Expense
|
|
|
69,507
|
|
|
88,798
|
||||||||||
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
|
150,830
|
|
|
165,970
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Preferred Stock Dividend Requirements Including Capital Stock Expense
|
|
|
-
|
|
|
208
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
150,830
|
|
$
|
165,762
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
The common stock of OPCo is wholly-owned by AEP.
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
2012
|
|
2011
|
|||||||||||
NET INCOME
|
|
$
|
150,830
|
|
$
|
165,970
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
||||||||||
Cash Flow Hedges, Net of Tax of $937 in 2012 and $158 in 2011
|
|
|
(1,741)
|
|
|
293
|
||||||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $1,745 in 2012
|
|
|
|
|
|
|
||||||||||
|
and $1,422 in 2011
|
|
|
3,241
|
|
|
2,641
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
|
|
1,500
|
|
|
2,934
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
152,330
|
|
$
|
168,904
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
OHIO POWER COMPANY CONSOLIDATED
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Total
|
||||||||||||||||||||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
EQUITY – DECEMBER 31, 2010
|
|
$
|
321,201
|
|
$
|
1,744,991
|
|
$
|
2,768,602
|
|
$
|
(180,155)
|
|
$
|
4,654,639
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
(162,500)
|
|
|
|
|
|
(162,500)
|
||||||||||||||||||||||||||||||||||||
Preferred Stock Dividends
|
|
|
|
|
|
|
|
|
(183)
|
|
|
|
|
|
(183)
|
||||||||||||||||||||||||||||||||||||
Capital Stock Expense
|
|
|
|
|
|
25
|
|
|
(25)
|
|
|
|
|
|
-
|
||||||||||||||||||||||||||||||||||||
SUBTOTAL – COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,491,956
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
NET INCOME
|
|
|
|
|
|
|
|
|
165,970
|
|
|
|
|
|
165,970
|
||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
2,934
|
|
|
2,934
|
||||||||||||||||||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
EQUITY – MARCH 31, 2011
|
|
$
|
321,201
|
|
$
|
1,745,016
|
|
$
|
2,771,864
|
|
$
|
(177,221)
|
|
$
|
4,660,860
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
EQUITY – DECEMBER 31, 2011
|
|
$
|
321,201
|
|
$
|
1,744,099
|
|
$
|
2,582,600
|
|
$
|
(197,722)
|
|
$
|
4,450,178
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
(75,000)
|
|
|
|
|
|
(75,000)
|
||||||||||||||||||||||||||||||||||||
SUBTOTAL – COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,375,178
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
NET INCOME
|
|
|
|
|
|
|
|
|
150,830
|
|
|
|
|
|
150,830
|
||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
1,500
|
|
|
1,500
|
||||||||||||||||||||||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
EQUITY – MARCH 31, 2012
|
|
$
|
321,201
|
|
$
|
1,744,099
|
|
$
|
2,658,430
|
|
$
|
(196,222)
|
|
$
|
4,527,508
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2012 and December 31, 2011
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
|
2012
|
|
2011
|
||||
CURRENT ASSETS
|
|
|
|
|
|
|
||
Cash and Cash Equivalents
|
|
$
|
1,709
|
|
$
|
2,095
|
||
Advances to Affiliates
|
|
|
89,840
|
|
|
219,458
|
||
Accounts Receivable:
|
|
|
|
|
|
|
||
|
Customers
|
|
|
87,635
|
|
|
146,432
|
|
|
Affiliated Companies
|
|
|
146,616
|
|
|
162,830
|
|
|
Accrued Unbilled Revenues
|
|
|
3,095
|
|
|
19,012
|
|
|
Miscellaneous
|
|
|
12,811
|
|
|
16,994
|
|
|
Allowance for Uncollectible Accounts
|
|
|
(3,526)
|
|
|
(3,563)
|
|
|
|
Total Accounts Receivable
|
|
|
246,631
|
|
|
341,705
|
Fuel
|
|
|
311,773
|
|
|
262,886
|
||
Materials and Supplies
|
|
|
193,333
|
|
|
201,325
|
||
Risk Management Assets
|
|
|
73,775
|
|
|
54,293
|
||
Accrued Tax Benefits
|
|
|
6,095
|
|
|
11,975
|
||
Prepayments and Other Current Assets
|
|
|
42,862
|
|
|
41,560
|
||
TOTAL CURRENT ASSETS
|
|
|
966,018
|
|
|
1,135,297
|
||
|
|
|
|
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
||
Electric:
|
|
|
|
|
|
|
||
|
Generation
|
|
|
9,528,532
|
|
|
9,502,614
|
|
|
Transmission
|
|
|
1,958,930
|
|
|
1,948,329
|
|
|
Distribution
|
|
|
3,582,480
|
|
|
3,545,574
|
|
Other Property, Plant and Equipment
|
|
|
556,737
|
|
|
546,642
|
||
Construction Work in Progress
|
|
|
364,474
|
|
|
354,465
|
||
Total Property, Plant and Equipment
|
|
|
15,991,153
|
|
|
15,897,624
|
||
Accumulated Depreciation and Amortization
|
|
|
5,692,825
|
|
|
5,742,561
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
|
10,298,328
|
|
|
10,155,063
|
||
|
|
|
|
|
|
|
||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
||
Regulatory Assets
|
|
|
1,356,371
|
|
|
1,370,504
|
||
Long-term Risk Management Assets
|
|
|
68,264
|
|
|
53,614
|
||
Deferred Charges and Other Noncurrent Assets
|
|
|
250,748
|
|
|
309,775
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
|
1,675,383
|
|
|
1,733,893
|
||
|
|
|
|
|
|
|
||
TOTAL ASSETS
|
|
$
|
12,939,729
|
|
$
|
13,024,253
|
||
|
|
|
|
|
|
|
||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
OHIO POWER COMPANY CONSOLIDATED
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
||||||||
March 31, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
|
2012
|
|
2011
|
||||
|
|
|
(in thousands)
|
|||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
||
Accounts Payable:
|
|
|
|
|
|
|
||
|
General
|
|
$
|
229,329
|
|
$
|
293,730
|
|
|
Affiliated Companies
|
|
|
115,182
|
|
|
183,898
|
|
Long-term Debt Due Within One Year – Nonaffiliated
|
|
|
594,500
|
|
|
244,500
|
||
Risk Management Liabilities
|
|
|
49,460
|
|
|
36,561
|
||
Accrued Taxes
|
|
|
365,340
|
|
|
450,570
|
||
Accrued Interest
|
|
|
68,100
|
|
|
66,441
|
||
Other Current Liabilities
|
|
|
246,062
|
|
|
238,275
|
||
TOTAL CURRENT LIABILITIES
|
|
|
1,667,973
|
|
|
1,513,975
|
||
|
|
|
|
|
|
|
||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
||
Long-term Debt – Nonaffiliated
|
|
|
3,109,846
|
|
|
3,609,648
|
||
Long-term Debt – Affiliated
|
|
|
200,000
|
|
|
200,000
|
||
Long-term Risk Management Liabilities
|
|
|
32,662
|
|
|
17,890
|
||
Deferred Income Taxes
|
|
|
2,286,013
|
|
|
2,245,380
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
467,993
|
|
|
301,124
|
||
Employee Benefits and Pension Obligations
|
|
|
321,980
|
|
|
335,029
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
325,754
|
|
|
351,029
|
||
TOTAL NONCURRENT LIABILITIES
|
|
|
6,744,248
|
|
|
7,060,100
|
||
|
|
|
|
|
|
|
||
TOTAL LIABILITIES
|
|
|
8,412,221
|
|
|
8,574,075
|
||
|
|
|
|
|
|
|
|
|
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
|
|
|
1,744,099
|
|
|
1,744,099
|
||
Retained Earnings
|
|
|
2,658,430
|
|
|
2,582,600
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
|
(196,222)
|
|
|
(197,722)
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
|
4,527,508
|
|
|
4,450,178
|
||
|
|
|
|
|
|
|
||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|
$
|
12,939,729
|
|
$
|
13,024,253
|
||
|
|
|
|
|
|
|
||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
OHIO POWER COMPANY CONSOLIDATED
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
|
|||||||||
|
|
2012
|
|
2011
|
|||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|||
Net Income
|
|
$
|
150,830
|
|
$
|
165,970
|
|||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|||
|
|
Depreciation and Amortization
|
|
|
134,430
|
|
|
133,412
|
|
|
|
Deferred Income Taxes
|
|
|
47,668
|
|
|
60,940
|
|
|
|
Carrying Costs Income
|
|
|
(2,758)
|
|
|
(10,731)
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
|
(1,123)
|
|
|
(1,203)
|
|
|
|
Mark-to-Market of Risk Management Contracts
|
|
|
(8,566)
|
|
|
(1,487)
|
|
|
|
Property Taxes
|
|
|
53,973
|
|
|
52,233
|
|
|
|
Fuel Over/Under-Recovery, Net
|
|
|
21,222
|
|
|
(21,197)
|
|
|
|
Change in Other Noncurrent Assets
|
|
|
(1,649)
|
|
|
(17,314)
|
|
|
|
Change in Other Noncurrent Liabilities
|
|
|
(20,486)
|
|
|
16,371
|
|
|
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
|
|
|
|
Accounts Receivable, Net
|
|
|
98,001
|
|
|
79,087
|
|
|
|
Fuel, Materials and Supplies
|
|
|
(40,200)
|
|
|
57,075
|
|
|
|
Accounts Payable
|
|
|
(98,502)
|
|
|
(76,834)
|
|
|
|
Accrued Taxes, Net
|
|
|
(76,603)
|
|
|
(70,876)
|
|
|
|
Other Current Assets
|
|
|
(2,041)
|
|
|
3,098
|
|
|
|
Other Current Liabilities
|
|
|
(10,538)
|
|
|
(34,157)
|
Net Cash Flows from Operating Activities
|
|
|
243,658
|
|
|
334,387
|
|||
|
|
|
|
|
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|||
Construction Expenditures
|
|
|
(148,956)
|
|
|
(94,592)
|
|||
Change in Advances to Affiliates, Net
|
|
|
129,618
|
|
|
8,312
|
|||
Acquisitions of Assets
|
|
|
(23)
|
|
|
(1,489)
|
|||
Proceeds from Sales of Assets
|
|
|
2,827
|
|
|
23,895
|
|||
Other Investing Activities
|
|
|
-
|
|
|
12,178
|
|||
Net Cash Flows Used for Investing Activities
|
|
|
(16,534)
|
|
|
(51,696)
|
|||
|
|
|
|
|
|
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|||
Issuance of Long-term Debt – Nonaffiliated
|
|
|
-
|
|
|
49,917
|
|||
Retirement of Long-term Debt – Nonaffiliated
|
|
|
(150,000)
|
|
|
(165,000)
|
|||
Principal Payments for Capital Lease Obligations
|
|
|
(2,619)
|
|
|
(3,123)
|
|||
Dividends Paid on Common Stock
|
|
|
(75,000)
|
|
|
(162,500)
|
|||
Dividends Paid on Cumulative Preferred Stock
|
|
|
-
|
|
|
(183)
|
|||
Other Financing Activities
|
|
|
109
|
|
|
(162)
|
|||
Net Cash Flows Used for Financing Activities
|
|
|
(227,510)
|
|
|
(281,051)
|
|||
|
|
|
|
|
|
|
|||
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
(386)
|
|
|
1,640
|
|||
Cash and Cash Equivalents at Beginning of Period
|
|
|
2,095
|
|
|
949
|
|||
Cash and Cash Equivalents at End of Period
|
|
$
|
1,709
|
|
$
|
2,589
|
|||
|
|
|
|
|
|
|
|||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
52,150
|
|
$
|
53,332
|
|||
Net Cash Paid (Received) for Income Taxes
|
|
|
(7,359)
|
|
|
1,273
|
|||
Noncash Acquisitions Under Capital Leases
|
|
|
819
|
|
|
469
|
|||
Government Grants Included in Accounts Receivable at March 31,
|
|
|
2,052
|
|
|
1,938
|
|||
Construction Expenditures Included in Current Liabilities at March 31,
|
|
|
28,330
|
|
|
24,131
|
|||
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 4
|
Business Segments
|
Note 5
|
Derivatives and Hedging
|
Note 6
|
Fair Value Measurements
|
Note 7
|
Income Taxes
|
Note 8
|
Financing Activities
|
Note 9
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in millions of KWHs)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
1,337
|
|
|
1,540
|
|
Commercial
|
|
1,101
|
|
|
1,130
|
|
Industrial
|
|
1,193
|
|
|
1,123
|
|
Miscellaneous
|
|
300
|
|
|
279
|
Total Retail
|
|
3,931
|
|
|
4,072
|
|
|
|
|
|
|
|
|
Wholesale
|
|
545
|
|
|
234
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
4,476
|
|
|
4,306
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
676
|
|
|
1,257
|
|
Normal - Heating (b)
|
|
1,066
|
|
|
1,058
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
64
|
|
|
33
|
|
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 2012 Compared to First Quarter of 2011
|
Reconciliation of First Quarter of 2011 to First Quarter of 2012
|
||||||||
Net Income
|
||||||||
(in millions)
|
||||||||
|
|
|
|
|
|
|
|
|
First Quarter of 2011
|
|
|
|
|
$
|
15
|
||
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
|
||
Retail Margins (a)
|
|
|
|
|
|
7
|
||
Transmission Revenues
|
|
|
|
|
|
(2)
|
||
Total Change in Gross Margin
|
|
|
|
|
|
5
|
||
|
|
|
|
|
|
|
||
Changes in Expenses and Other:
|
|
|
|
|
|
|
||
Other Operation and Maintenance
|
|
|
|
|
|
(10)
|
||
Other Income
|
|
|
|
|
|
1
|
||
Interest Expense
|
|
|
|
|
|
1
|
||
Total Change in Expenses and Other
|
|
|
|
|
|
(8)
|
||
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
1
|
||
|
|
|
|
|
|
|
|
|
First Quarter of 2012
|
|
|
|
|
$
|
13
|
||
|
|
|
|
|
|
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins increased $7 million primarily due to the following:
|
||
·
|
A $4 million increase primarily due to revenue increases from rate riders. This increase in retail margins had corresponding increases to riders/trackers recognized in other expense items.
|
||
·
|
A $4 million increase in industrial margins primarily due to increased usage.
|
||
·
|
A $3 million increase primarily due to decreased capacity and fuel costs.
|
||
These increases were partially offset by:
|
|||
·
|
A $4 million decrease in weather-related usage primarily due to a 52% decrease in heating degree days.
|
·
|
Other Operation and Maintenance expenses increased $10 million primarily due to the following:
|
||
·
|
A $6 million increase in plant operations primarily due to the 2011 deferral of generation maintenance expenses as a result of an order in PSO’s base rate case and an increase in generation plant maintenance.
|
||
·
|
A $5 million increase in transmission expenses primarily due to increased SPP transmission services.
|
||
These increases were partially offset by:
|
|||
·
|
A $2 million decrease in operation expenses due to lower employee-related expenses.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||||||||||
CONDENSED STATEMENTS OF INCOME
|
||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2012
|
|
2011
|
||||||||||||
REVENUES
|
|
|
|
|
|
|||||||||||
Electric Generation, Transmission and Distribution
|
|
$
|
292,522
|
|
$
|
284,587
|
||||||||||
Sales to AEP Affiliates
|
|
|
7,105
|
|
|
2,796
|
||||||||||
Other Revenues
|
|
|
904
|
|
|
620
|
||||||||||
TOTAL REVENUES
|
|
|
300,531
|
|
|
288,003
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES
|
|
|
|
|
|
|
||||||||||
Fuel and Other Consumables Used for Electric Generation
|
|
|
125,425
|
|
|
91,748
|
||||||||||
Purchased Electricity for Resale
|
|
|
25,442
|
|
|
41,179
|
||||||||||
Purchased Electricity from AEP Affiliates
|
|
|
6,198
|
|
|
16,611
|
||||||||||
Other Operation
|
|
|
46,979
|
|
|
44,404
|
||||||||||
Maintenance
|
|
|
28,325
|
|
|
20,721
|
||||||||||
Depreciation and Amortization
|
|
|
23,533
|
|
|
23,863
|
||||||||||
Taxes Other Than Income Taxes
|
|
|
11,139
|
|
|
10,596
|
||||||||||
TOTAL EXPENSES
|
|
|
267,041
|
|
|
249,122
|
||||||||||
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME
|
|
|
33,490
|
|
|
38,881
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
||||||||||
Interest Income
|
|
|
935
|
|
|
52
|
||||||||||
Carrying Costs Income
|
|
|
613
|
|
|
647
|
||||||||||
Allowance for Equity Funds Used During Construction
|
|
|
422
|
|
|
366
|
||||||||||
Interest Expense
|
|
|
(14,711)
|
|
|
(15,938)
|
||||||||||
|
|
|
|
|
|
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
|
|
20,749
|
|
|
24,008
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Income Tax Expense
|
|
|
8,101
|
|
|
8,619
|
||||||||||
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
|
12,648
|
|
|
15,389
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Preferred Stock Dividend Requirements
|
|
|
-
|
|
|
49
|
||||||||||
|
|
|
|
|
|
|
||||||||||
EARNINGS ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
12,648
|
|
$
|
15,340
|
||||||||||
|
|
|
|
|
|
|
||||||||||
The common stock of PSO is wholly-owned by AEP.
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
2012
|
|
2011
|
|||||||||||
NET INCOME
|
|
$
|
12,648
|
|
$
|
15,389
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
||||||||||
Cash Flow Hedges, Net of Tax of $29 in 2012 and $239 in 2011
|
|
|
(53)
|
|
|
(443)
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
12,595
|
|
$
|
14,946
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||||||||||||
CONDENSED STATEMENTS OF CHANGES IN
|
||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|||||
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
||||||||
|
|
|
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Total
|
|||||
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
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
NET INCOME
|
|
|
|
|
|
|
|
|
15,389
|
|
|
|
|
|
15,389
|
|||
OTHER COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
|
|
|
(443)
|
|
|
(443)
|
|||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
EQUITY – MARCH 31, 2011
|
|
$
|
157,230
|
|
$
|
364,307
|
|
$
|
311,531
|
|
$
|
8,051
|
|
$
|
841,119
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
EQUITY – DECEMBER 31, 2011
|
|
$
|
157,230
|
|
$
|
364,037
|
|
$
|
364,389
|
|
$
|
7,149
|
|
$
|
892,805
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
(15,000)
|
|
|
|
|
|
(15,000)
|
|||
SUBTOTAL – COMMON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
SHAREHOLDER'S EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
877,805
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
NET INCOME
|
|
|
|
|
|
|
|
|
12,648
|
|
|
|
|
|
12,648
|
|||
OTHER COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
|
|
|
(53)
|
|
|
(53)
|
|||
TOTAL COMMON SHAREHOLDER'S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
EQUITY – MARCH 31, 2012
|
|
$
|
157,230
|
|
$
|
364,037
|
|
$
|
362,037
|
|
$
|
7,096
|
|
$
|
890,400
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||
CONDENSED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
March 31, 2012 and December 31, 2011
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
||||||||
|
|
2012
|
|
2011
|
||||
CURRENT ASSETS
|
|
|
|
|
|
|
||
Cash and Cash Equivalents
|
|
$
|
788
|
|
$
|
1,413
|
||
Advances to Affiliates
|
|
|
29,136
|
|
|
39,876
|
||
Accounts Receivable:
|
|
|
|
|
|
|
||
|
Customers
|
|
|
35,939
|
|
|
39,977
|
|
|
Affiliated Companies
|
|
|
44,613
|
|
|
23,079
|
|
|
Miscellaneous
|
|
|
7,342
|
|
|
8,993
|
|
|
Allowance for Uncollectible Accounts
|
|
|
(771)
|
|
|
(777)
|
|
|
|
Total Accounts Receivable
|
|
|
87,123
|
|
|
71,272
|
Fuel
|
|
|
19,661
|
|
|
20,854
|
||
Materials and Supplies
|
|
|
50,429
|
|
|
50,347
|
||
Risk Management Assets
|
|
|
860
|
|
|
565
|
||
Deferred Income Tax Benefits
|
|
|
10,528
|
|
|
7,013
|
||
Accrued Tax Benefits
|
|
|
9,116
|
|
|
6,733
|
||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
|
-
|
|
|
4,313
|
||
Prepayments and Other Current Assets
|
|
|
6,777
|
|
|
6,440
|
||
TOTAL CURRENT ASSETS
|
|
|
214,418
|
|
|
208,826
|
||
|
|
|
|
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
||
Electric:
|
|
|
|
|
|
|
||
|
Generation
|
|
|
1,316,411
|
|
|
1,317,948
|
|
|
Transmission
|
|
|
696,741
|
|
|
692,644
|
|
|
Distribution
|
|
|
1,786,250
|
|
|
1,762,110
|
|
Other Property, Plant and Equipment
|
|
|
217,335
|
|
|
214,626
|
||
Construction Work in Progress
|
|
|
66,030
|
|
|
70,371
|
||
Total Property, Plant and Equipment
|
|
|
4,082,767
|
|
|
4,057,699
|
||
Accumulated Depreciation and Amortization
|
|
|
1,265,681
|
|
|
1,266,816
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
|
2,817,086
|
|
|
2,790,883
|
||
|
|
|
|
|
|
|
||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
||
Regulatory Assets
|
|
|
264,738
|
|
|
266,545
|
||
Long-term Risk Management Assets
|
|
|
255
|
|
|
314
|
||
Deferred Charges and Other Noncurrent Assets
|
|
|
42,229
|
|
|
13,536
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
|
307,222
|
|
|
280,395
|
||
|
|
|
|
|
|
|
||
TOTAL ASSETS
|
|
$
|
3,338,726
|
|
$
|
3,280,104
|
||
|
|
|
|
|
|
|
||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||
CONDENSED BALANCE SHEETS
|
||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
||||||||
March 31, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
|
|
|
|
|
|
|
||
|
|
2012
|
|
2011
|
||||
|
|
|
(in thousands)
|
|||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
||
Accounts Payable:
|
|
|
|
|
|
|
||
|
General
|
|
$
|
53,661
|
|
$
|
76,607
|
|
|
Affiliated Companies
|
|
|
39,071
|
|
|
45,029
|
|
Long-term Debt Due Within One Year – Nonaffiliated
|
|
|
429
|
|
|
311
|
||
Risk Management Liabilities
|
|
|
4,059
|
|
|
1,280
|
||
Customer Deposits
|
|
|
46,737
|
|
|
47,493
|
||
Accrued Taxes
|
|
|
40,255
|
|
|
21,660
|
||
Accrued Interest
|
|
|
14,970
|
|
|
12,637
|
||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
|
57,762
|
|
|
-
|
||
Other Current Liabilities
|
|
|
37,043
|
|
|
43,586
|
||
TOTAL CURRENT LIABILITIES
|
|
|
293,987
|
|
|
248,603
|
||
|
|
|
|
|
|
|
||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
||
Long-term Debt – Nonaffiliated
|
|
|
948,964
|
|
|
947,053
|
||
Long-term Risk Management Liabilities
|
|
|
3,410
|
|
|
1,330
|
||
Deferred Income Taxes
|
|
|
736,567
|
|
|
726,463
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
340,564
|
|
|
334,812
|
||
Employee Benefits and Pension Obligations
|
|
|
82,990
|
|
|
84,548
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
41,844
|
|
|
44,490
|
||
TOTAL NONCURRENT LIABILITIES
|
|
|
2,154,339
|
|
|
2,138,696
|
||
|
|
|
|
|
|
|
||
TOTAL LIABILITIES
|
|
|
2,448,326
|
|
|
2,387,299
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
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
|
|
|
364,037
|
|
|
364,037
|
||
Retained Earnings
|
|
|
362,037
|
|
|
364,389
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
|
7,096
|
|
|
7,149
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
|
890,400
|
|
|
892,805
|
||
|
|
|
|
|
|
|
||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|
$
|
3,338,726
|
|
$
|
3,280,104
|
||
|
|
|
|
|
|
|
||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
|||||||||
CONDENSED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
|
|||||||||
|
|
2012
|
|
2011
|
|||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|||
Net Income
|
|
$
|
12,648
|
|
$
|
15,389
|
|||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating
|
|
|
|
|
|
|
|||
|
Activities:
|
|
|
|
|
|
|
||
|
|
Depreciation and Amortization
|
|
|
23,533
|
|
|
23,863
|
|
|
|
Deferred Income Taxes
|
|
|
9,307
|
|
|
15,364
|
|
|
|
Carrying Costs Income
|
|
|
(613)
|
|
|
(647)
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
|
(422)
|
|
|
(366)
|
|
|
|
Mark-to-Market of Risk Management Contracts
|
|
|
4,818
|
|
|
397
|
|
|
|
Property Taxes
|
|
|
(29,020)
|
|
|
(28,113)
|
|
|
|
Fuel Over/Under-Recovery, Net
|
|
|
62,075
|
|
|
5,863
|
|
|
|
Change in Other Noncurrent Assets
|
|
|
(3,567)
|
|
|
(770)
|
|
|
|
Change in Other Noncurrent Liabilities
|
|
|
(372)
|
|
|
20,617
|
|
|
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
|
|
|
|
Accounts Receivable, Net
|
|
|
(15,757)
|
|
|
29,450
|
|
|
|
Fuel, Materials and Supplies
|
|
|
1,111
|
|
|
(665)
|
|
|
|
Accounts Payable
|
|
|
(10,655)
|
|
|
4,103
|
|
|
|
Accrued Taxes, Net
|
|
|
15,852
|
|
|
11,392
|
|
|
|
Other Current Assets
|
|
|
(564)
|
|
|
(2,025)
|
|
|
|
Other Current Liabilities
|
|
|
(3,542)
|
|
|
4,378
|
Net Cash Flows from Operating Activities
|
|
|
64,832
|
|
|
98,230
|
|||
|
|
|
|
|
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|||
Construction Expenditures
|
|
|
(62,696)
|
|
|
(32,876)
|
|||
Change in Advances to Affiliates, Net
|
|
|
10,740
|
|
|
(3,093)
|
|||
Other Investing Activities
|
|
|
290
|
|
|
367
|
|||
Net Cash Flows Used for Investing Activities
|
|
|
(51,666)
|
|
|
(35,602)
|
|||
|
|
|
|
|
|
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|||
Issuance of Long-term Debt – Nonaffiliated
|
|
|
1,944
|
|
|
246,376
|
|||
Change in Advances from Affiliates, Net
|
|
|
-
|
|
|
(91,382)
|
|||
Retirement of Long-term Debt – Nonaffiliated
|
|
|
-
|
|
|
(200,000)
|
|||
Principal Payments for Capital Lease Obligations
|
|
|
(841)
|
|
|
(1,039)
|
|||
Dividends Paid on Common Stock
|
|
|
(15,000)
|
|
|
(16,250)
|
|||
Dividends Paid on Cumulative Preferred Stock
|
|
|
-
|
|
|
(49)
|
|||
Other Financing Activities
|
|
|
106
|
|
|
-
|
|||
Net Cash Flows Used for Financing Activities
|
|
|
(13,791)
|
|
|
(62,344)
|
|||
|
|
|
|
|
|
|
|||
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
(625)
|
|
|
284
|
|||
Cash and Cash Equivalents at Beginning of Period
|
|
|
1,413
|
|
|
470
|
|||
Cash and Cash Equivalents at End of Period
|
|
$
|
788
|
|
$
|
754
|
|||
|
|
|
|
|
|
|
|||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|||
Cash Paid (Received) for Interest, Net of Capitalized Amounts
|
|
$
|
10,795
|
|
$
|
(5,337)
|
|||
Net Cash Paid for Income Taxes
|
|
|
4,873
|
|
|
286
|
|||
Noncash Acquisitions Under Capital Leases
|
|
|
437
|
|
|
384
|
|||
Construction Expenditures Included in Current Liabilities at March 31,
|
|
|
9,861
|
|
|
5,048
|
|||
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 4
|
Business Segments
|
Note 5
|
Derivatives and Hedging
|
Note 6
|
Fair Value Measurements
|
Note 7
|
Income Taxes
|
Note 8
|
Financing Activities
|
Note 9
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
KWH Sales/Degree Days
|
|
|
|
|
|
Summary of KWH Energy Sales
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in millions of KWHs)
|
||||
Retail:
|
|
|
|
|
|
|
|
Residential
|
|
1,382
|
|
|
1,604
|
|
Commercial
|
|
1,311
|
|
|
1,366
|
|
Industrial
|
|
1,318
|
|
|
1,252
|
|
Miscellaneous
|
|
20
|
|
|
20
|
Total Retail
|
|
4,031
|
|
|
4,242
|
|
|
|
|
|
|
|
|
Wholesale
|
|
2,272
|
|
|
1,877
|
|
|
|
|
|
|
|
|
Total KWHs
|
|
6,303
|
|
|
6,119
|
Summary of Heating and Cooling Degree Days
|
||||||
|
||||||
|
|
Three Months Ended March 31,
|
||||
|
2012
|
|
2011
|
|||
|
|
(in degree days)
|
||||
|
|
|
|
|
|
|
Actual - Heating (a)
|
|
423
|
|
|
849
|
|
Normal - Heating (b)
|
|
746
|
|
|
745
|
|
|
|
|
|
|
|
|
Actual - Cooling (c)
|
|
114
|
|
|
51
|
|
Normal - Cooling (b)
|
|
30
|
|
|
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 2012 Compared to First Quarter of 2011
|
Reconciliation of First Quarter of 2011 to First Quarter of 2012
|
||||||||
Net Income
|
||||||||
(in millions)
|
||||||||
|
|
|
|
|
|
|
|
|
First Quarter of 2011
|
|
|
|
|
$
|
30
|
||
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
|
||
Retail Margins (a)
|
|
|
|
|
|
(10)
|
||
Other Revenues
|
|
|
|
|
|
1
|
||
Total Change in Gross Margin
|
|
|
|
|
|
(9)
|
||
|
|
|
|
|
|
|
||
Changes in Expenses and Other:
|
|
|
|
|
|
|
||
Other Operation and Maintenance
|
|
|
|
|
|
11
|
||
Depreciation and Amortization
|
|
|
|
|
|
(1)
|
||
Other Income
|
|
|
|
|
|
4
|
||
Total Change in Expenses and Other
|
|
|
|
|
|
14
|
||
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
1
|
||
|
|
|
|
|
|
|
|
|
First Quarter of 2012
|
|
|
|
|
$
|
36
|
||
|
|
|
|
|
|
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins decreased $10 million primarily due to:
|
|||
·
|
A $14 million decrease primarily due to adjustments to capacity and fuel costs.
|
|||
·
|
A $5 million decrease in weather-related usage primarily due to a 50% decrease in heating degree days.
|
|||
These decreases were partially offset by:
|
||||
·
|
A $9 million increase in municipal and cooperative revenues due to formula rate adjustments and higher rates.
|
·
|
Other Operation and Maintenance expenses decreased $11 million primarily due to:
|
||
·
|
A $6 million decrease in generation maintenance expenses primarily due to the timing of planned plant outages.
|
||
·
|
A $2 million decrease in distribution maintenance expenses primarily due to decreased vegetation management and storm-related expenses.
|
||
·
|
A $2 million decrease in operation expenses primarily due to lower employee-related expenses.
|
||
·
|
Other Income increased $4 million primarily due to an increase in AFUDC as a result of construction at the Turk Plant.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2012
|
|
2011
|
||||||||||||
REVENUES
|
|
|
|
|
|
|||||||||||
Electric Generation, Transmission and Distribution
|
|
$
|
339,703
|
|
$
|
347,067
|
||||||||||
Sales to AEP Affiliates
|
|
|
8,957
|
|
|
15,579
|
||||||||||
Other Revenues
|
|
|
326
|
|
|
309
|
||||||||||
TOTAL REVENUES
|
|
|
348,986
|
|
|
362,955
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES
|
|
|
|
|
|
|
||||||||||
Fuel and Other Consumables Used for Electric Generation
|
|
|
128,234
|
|
|
134,012
|
||||||||||
Purchased Electricity for Resale
|
|
|
35,467
|
|
|
38,589
|
||||||||||
Purchased Electricity from AEP Affiliates
|
|
|
6,255
|
|
|
2,111
|
||||||||||
Other Operation
|
|
|
51,593
|
|
|
54,068
|
||||||||||
Maintenance
|
|
|
21,262
|
|
|
29,391
|
||||||||||
Depreciation and Amortization
|
|
|
34,021
|
|
|
33,290
|
||||||||||
Taxes Other Than Income Taxes
|
|
|
16,786
|
|
|
16,966
|
||||||||||
TOTAL EXPENSES
|
|
|
293,618
|
|
|
308,427
|
||||||||||
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME
|
|
|
55,368
|
|
|
54,528
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
||||||||||
Other Income
|
|
|
14,894
|
|
|
10,540
|
||||||||||
Interest Expense
|
|
|
(22,002)
|
|
|
(22,425)
|
||||||||||
|
|
|
|
|
|
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
|
|
48,260
|
|
|
42,643
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Income Tax Expense
|
|
|
12,472
|
|
|
13,396
|
||||||||||
Equity Earnings of Unconsolidated Subsidiary
|
|
|
607
|
|
|
580
|
||||||||||
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
|
36,395
|
|
|
29,827
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Net Income Attributable to Noncontrolling Interest
|
|
|
1,083
|
|
|
1,082
|
||||||||||
|
|
|
|
|
|
|
||||||||||
NET INCOME ATTRIBUTABLE TO SWEPCo SHAREHOLDERS
|
|
|
35,312
|
|
|
28,745
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Preferred Stock Dividend Requirements
|
|
|
-
|
|
|
57
|
||||||||||
|
|
|
|
|
|
|
||||||||||
EARNINGS ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER
|
|
$
|
35,312
|
|
$
|
28,688
|
||||||||||
|
|
|
|
|
|
|
||||||||||
The common stock of SWEPCo is wholly-owned by AEP.
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||
(in thousands)
|
|||||||
(Unaudited)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
||
NET INCOME
|
|
$
|
36,395
|
|
$
|
29,827
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
Cash Flow Hedges, Net of Tax of $956 in 2012 and $202 in 2011
|
|
|
(1,775)
|
|
|
376
|
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $89 in 2012
|
|
|
|
|
|
|
|
|
and $69 in 2011
|
|
|
165
|
|
|
128
|
|
|
|
|
|
|
|
|
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
(1,610)
|
|
|
504
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME
|
|
|
34,785
|
|
|
30,331
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Income Attributable to Noncontrolling Interest
|
|
|
1,083
|
|
|
1,082
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SWEPCo
|
|
|
|
|
|
|
|
|
SHAREHOLDERS
|
|
$
|
33,702
|
|
$
|
29,249
|
|
|
|
|
|
|
|
|
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(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, 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
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
NET INCOME
|
|
|
|
|
|
|
|
|
28,745
|
|
|
|
|
|
1,082
|
|
|
29,827
|
|||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
504
|
|
|
|
|
|
504
|
|||||||||||||||||||||||||||||||||||||||
TOTAL EQUITY – MARCH 31, 2011
|
|
$
|
135,660
|
|
$
|
674,979
|
|
$
|
897,528
|
|
$
|
(11,987)
|
|
$
|
366
|
|
$
|
1,696,546
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
TOTAL EQUITY – DECEMBER 31, 2011
|
|
$
|
135,660
|
|
$
|
674,606
|
|
$
|
1,029,915
|
|
$
|
(26,815)
|
|
$
|
391
|
|
$
|
1,813,757
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,092)
|
|
|
(1,092)
|
|||||||||||||||||||||||||||||||||||||||
SUBTOTAL – EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,812,665
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
NET INCOME
|
|
|
|
|
|
|
|
|
35,312
|
|
|
|
|
|
1,083
|
|
|
36,395
|
|||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
|
|
|
(1,610)
|
|
|
|
|
|
(1,610)
|
|||||||||||||||||||||||||||||||||||||||
TOTAL EQUITY – MARCH 31, 2012
|
|
$
|
135,660
|
|
$
|
674,606
|
|
$
|
1,065,227
|
|
$
|
(28,425)
|
|
$
|
382
|
|
$
|
1,847,450
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
ASSETS
|
|||||||||
March 31, 2012 and December 31, 2011
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
|
|||||||||
|
|
2012
|
|
2011
|
|||||
CURRENT ASSETS
|
|
|
|
|
|
|
|||
Cash and Cash Equivalents
|
|
|
|
|
|
|
|||
|
|
|
(March 31, 2012 amount includes $17,358 related to Sabine)
|
|
$
|
18,032
|
|
$
|
801
|
Advances to Affiliates
|
|
|
27,651
|
|
|
-
|
|||
Accounts Receivable:
|
|
|
|
|
|
|
|||
|
|
Customers
|
|
|
33,442
|
|
|
35,054
|
|
|
|
Affiliated Companies
|
|
|
23,569
|
|
|
23,730
|
|
|
|
Miscellaneous
|
|
|
15,439
|
|
|
19,370
|
|
|
|
Allowance for Uncollectible Accounts
|
|
|
(991)
|
|
|
(989)
|
|
|
|
|
Total Accounts Receivable
|
|
|
71,459
|
|
|
77,165
|
Fuel
|
|
|
|
|
|
|
|||
|
|
(March 31, 2012 and December 31, 2011 amounts include $23,351 and
|
|
|
|
|
|
|
|
|
|
$32,651, respectively, related to Sabine)
|
|
|
93,461
|
|
|
102,015
|
|
Materials and Supplies
|
|
|
64,062
|
|
|
55,325
|
|||
Risk Management Assets
|
|
|
1,197
|
|
|
445
|
|||
Deferred Income Tax Benefits
|
|
|
4,745
|
|
|
8,195
|
|||
Accrued Tax Benefits
|
|
|
56,523
|
|
|
1,541
|
|||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
|
18,676
|
|
|
10,843
|
|||
Prepayments and Other Current Assets
|
|
|
25,321
|
|
|
16,827
|
|||
TOTAL CURRENT ASSETS
|
|
|
381,127
|
|
|
273,157
|
|||
|
|
|
|
|
|
|
|||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|||
Electric:
|
|
|
|
|
|
|
|||
|
|
Generation
|
|
|
2,326,828
|
|
|
2,326,102
|
|
|
|
Transmission
|
|
|
1,020,686
|
|
|
988,534
|
|
|
|
Distribution
|
|
|
1,695,881
|
|
|
1,675,764
|
|
Other Property, Plant and Equipment
|
|
|
|
|
|
|
|||
|
|
(March 31, 2012 and December 31, 2011 amounts include $237,393 and
|
|
|
|
|
|
|
|
|
|
$232,948, respectively, related to Sabine)
|
|
|
650,122
|
|
|
637,019
|
|
Construction Work in Progress
|
|
|
1,499,757
|
|
|
1,443,569
|
|||
Total Property, Plant and Equipment
|
|
|
7,193,274
|
|
|
7,070,988
|
|||
Accumulated Depreciation and Amortization
|
|
|
|
|
|
|
|||
|
|
(March 31, 2012 and December 31, 2011 amounts include $106,736 and
|
|
|
|
|
|
|
|
|
|
$103,586, respectively, related to Sabine)
|
|
|
2,230,300
|
|
|
2,211,912
|
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
|
4,962,974
|
|
|
4,859,076
|
|||
|
|
|
|
|
|
|
|||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
|||
Regulatory Assets
|
|
|
415,221
|
|
|
394,276
|
|||
Long-term Risk Management Assets
|
|
|
423
|
|
|
282
|
|||
Deferred Charges and Other Noncurrent Assets
|
|
|
108,070
|
|
|
74,992
|
|||
TOTAL OTHER NONCURRENT ASSETS
|
|
|
523,714
|
|
|
469,550
|
|||
|
|
|
|
|
|
|
|||
TOTAL ASSETS
|
|
$
|
5,867,815
|
|
$
|
5,601,783
|
|||
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
March 31, 2012 and December 31, 2011
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
2012
|
|
2011
|
||||||||||||||||||||
|
|
|
(in thousands)
|
|||||||||||||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
||||||||||||||||||
Advances from Affiliates
|
|
$
|
-
|
|
$
|
132,473
|
||||||||||||||||||
Accounts Payable:
|
|
|
|
|
|
|
||||||||||||||||||
|
|
General
|
|
|
149,441
|
|
|
181,268
|
||||||||||||||||
|
|
Affiliated Companies
|
|
|
69,234
|
|
|
59,201
|
||||||||||||||||
Short-term Debt – Nonaffiliated
|
|
|
-
|
|
|
17,016
|
||||||||||||||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
|
3,250
|
|
|
20,000
|
||||||||||||||||||
Risk Management Liabilities
|
|
|
10,733
|
|
|
24,359
|
||||||||||||||||||
Customer Deposits
|
|
|
63,501
|
|
|
52,095
|
||||||||||||||||||
Accrued Taxes
|
|
|
57,079
|
|
|
44,404
|
||||||||||||||||||
Accrued Interest
|
|
|
18,854
|
|
|
39,629
|
||||||||||||||||||
Obligations Under Capital Leases
|
|
|
16,200
|
|
|
15,058
|
||||||||||||||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
|
-
|
|
|
5,032
|
||||||||||||||||||
Other Current Liabilities
|
|
|
67,385
|
|
|
64,413
|
||||||||||||||||||
TOTAL CURRENT LIABILITIES
|
|
|
455,677
|
|
|
654,948
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
||||||||||||||||||
Long-term Debt – Nonaffiliated
|
|
|
2,044,337
|
|
|
1,708,637
|
||||||||||||||||||
Long-term Risk Management Liabilities
|
|
|
309
|
|
|
221
|
||||||||||||||||||
Deferred Income Taxes
|
|
|
759,358
|
|
|
665,668
|
||||||||||||||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
438,882
|
|
|
428,571
|
||||||||||||||||||
Asset Retirement Obligations
|
|
|
74,647
|
|
|
65,673
|
||||||||||||||||||
Employee Benefits and Pension Obligations
|
|
|
92,794
|
|
|
87,159
|
||||||||||||||||||
Obligations Under Capital Leases
|
|
|
116,184
|
|
|
112,802
|
||||||||||||||||||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
38,177
|
|
|
64,347
|
||||||||||||||||||
TOTAL NONCURRENT LIABILITIES
|
|
|
3,564,688
|
|
|
3,133,078
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
TOTAL LIABILITIES
|
|
|
4,020,365
|
|
|
3,788,026
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
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
|
|
|
674,606
|
|
|
674,606
|
||||||||||||||||||
Retained Earnings
|
|
|
1,065,227
|
|
|
1,029,915
|
||||||||||||||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
(28,425)
|
|
|
(26,815)
|
||||||||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
|
1,847,068
|
|
|
1,813,366
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Noncontrolling Interest
|
|
|
382
|
|
|
391
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
TOTAL EQUITY
|
|
|
1,847,450
|
|
|
1,813,757
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
5,867,815
|
|
$
|
5,601,783
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Three Months Ended March 31, 2012 and 2011
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
|
|||||||||
|
|
2012
|
|
2011
|
|||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|||
Net Income
|
|
$
|
36,395
|
|
$
|
29,827
|
|||
Adjustments to Reconcile Net Income to Net Cash Flows from
|
|
|
|
|
|
|
|||
|
Operating Activities:
|
|
|
|
|
|
|
||
|
|
Depreciation and Amortization
|
|
|
34,021
|
|
|
33,290
|
|
|
|
Deferred Income Taxes
|
|
|
82,540
|
|
|
15,440
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
|
(13,774)
|
|
|
(10,597)
|
|
|
|
Mark-to-Market of Risk Management Contracts
|
|
|
4,896
|
|
|
(1,348)
|
|
|
|
Property Taxes
|
|
|
(29,686)
|
|
|
(30,534)
|
|
|
|
Fuel Over/Under-Recovery, Net
|
|
|
(12,865)
|
|
|
(7,074)
|
|
|
|
Change in Other Noncurrent Assets
|
|
|
(4,400)
|
|
|
13,210
|
|
|
|
Change in Other Noncurrent Liabilities
|
|
|
(10,862)
|
|
|
20,206
|
|
|
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
|
|
|
|
Accounts Receivable, Net
|
|
|
5,732
|
|
|
2,162
|
|
|
|
Fuel, Materials and Supplies
|
|
|
(183)
|
|
|
4,488
|
|
|
|
Accounts Payable
|
|
|
(7,399)
|
|
|
(11,429)
|
|
|
|
Accrued Taxes, Net
|
|
|
(42,370)
|
|
|
29,884
|
|
|
|
Accrued Interest
|
|
|
(20,801)
|
|
|
(22,192)
|
|
|
|
Other Current Assets
|
|
|
(8,557)
|
|
|
(940)
|
|
|
|
Other Current Liabilities
|
|
|
(127)
|
|
|
(12,285)
|
Net Cash Flows from Operating Activities
|
|
|
12,560
|
|
|
52,108
|
|||
|
|
|
|
|
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|||
Construction Expenditures
|
|
|
(130,344)
|
|
|
(114,351)
|
|||
Change in Advances to Affiliates, Net
|
|
|
(27,651)
|
|
|
76,855
|
|||
Other Investing Activities
|
|
|
(1,096)
|
|
|
(1,515)
|
|||
Net Cash Flows Used for Investing Activities
|
|
|
(159,091)
|
|
|
(39,011)
|
|||
|
|
|
|
|
|
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|||
Issuance of Long-term Debt – Nonaffiliated
|
|
|
336,664
|
|
|
-
|
|||
Credit Facility Borrowings
|
|
|
20,701
|
|
|
18,478
|
|||
Change in Advances from Affiliates, Net
|
|
|
(132,473)
|
|
|
-
|
|||
Retirement of Long-term Debt – Nonaffiliated
|
|
|
(20,000)
|
|
|
-
|
|||
Credit Facility Repayments
|
|
|
(37,717)
|
|
|
(24,695)
|
|||
Principal Payments for Capital Lease Obligations
|
|
|
(3,726)
|
|
|
(3,186)
|
|||
Dividends Paid on Common Stock – Nonaffiliated
|
|
|
(1,092)
|
|
|
(1,077)
|
|||
Dividends Paid on Cumulative Preferred Stock
|
|
|
-
|
|
|
(57)
|
|||
Other Financing Activities
|
|
|
1,405
|
|
|
-
|
|||
Net Cash Flows from (Used for) Financing Activities
|
|
|
163,762
|
|
|
(10,537)
|
|||
|
|
|
|
|
|
|
|||
Net Increase in Cash and Cash Equivalents
|
|
|
17,231
|
|
|
2,560
|
|||
Cash and Cash Equivalents at Beginning of Period
|
|
|
801
|
|
|
1,514
|
|||
Cash and Cash Equivalents at End of Period
|
|
$
|
18,032
|
|
$
|
4,074
|
|||
|
|
|
|
|
|
|
|||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
39,581
|
|
$
|
41,646
|
|||
Net Cash Paid for Income Taxes
|
|
|
1,168
|
|
|
698
|
|||
Noncash Acquisitions Under Capital Leases
|
|
|
8,396
|
|
|
4,286
|
|||
Construction Expenditures Included in Current Liabilities at March 31,
|
|
|
95,570
|
|
|
94,536
|
|||
|
|
|
|
|
|
|
|||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 128.
|
Footnote
Reference
|
|
Significant Accounting Matters
|
Note 1
|
Rate Matters
|
Note 2
|
Commitments, Guarantees and Contingencies
|
Note 3
|
Benefit Plans
|
Note 4
|
Business Segments
|
Note 5
|
Derivatives and Hedging
|
Note 6
|
Fair Value Measurements
|
Note 7
|
Income Taxes
|
Note 8
|
Financing Activities
|
Note 9
|
INDEX OF CONDENSED NOTES TO CONDENSED FINANCIAL STATEMENTS OF
|
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, I&M, OPCo, PSO, SWEPCo
|
2.
|
Rate Matters
|
APCo, I&M, OPCo, PSO, SWEPCo
|
3.
|
Commitments, Guarantees and Contingencies
|
APCo, I&M, OPCo, PSO, SWEPCo
|
4.
|
Benefit Plans
|
APCo, I&M, OPCo, PSO, SWEPCo
|
5.
|
Business Segments
|
APCo, I&M, OPCo, PSO, SWEPCo
|
6.
|
Derivatives and Hedging
|
APCo, I&M, OPCo, PSO, SWEPCo
|
7.
|
Fair Value Measurements
|
APCo, I&M, OPCo, PSO, SWEPCo
|
8.
|
Income Taxes
|
APCo, I&M, OPCo, PSO, SWEPCo
|
9.
|
Financing Activities
|
APCo, I&M, OPCo, PSO, SWEPCo
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||
VARIABLE INTEREST ENTITIES
|
||||||
March 31, 2012 and December 31, 2011
|
||||||
(in millions)
|
||||||
|
|
Sabine
|
||||
ASSETS
|
|
2012
|
|
2011
|
||
Current Assets
|
|
$
|
75
|
|
$
|
48
|
Net Property, Plant and Equipment
|
|
|
167
|
|
|
154
|
Other Noncurrent Assets
|
|
|
57
|
|
|
42
|
Total Assets
|
|
$
|
299
|
|
$
|
244
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current Liabilities
|
|
$
|
48
|
|
$
|
68
|
Noncurrent Liabilities
|
|
|
251
|
|
|
176
|
Equity
|
|
|
-
|
|
|
-
|
Total Liabilities and Equity
|
|
$
|
299
|
|
$
|
244
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||
VARIABLE INTEREST ENTITIES
|
||||||
March 31, 2012 and December 31, 2011
|
||||||
(in millions)
|
||||||
|
|
DCC Fuel
|
||||
ASSETS
|
|
2012
|
|
2011
|
||
Current Assets
|
|
$
|
123
|
|
$
|
118
|
Net Property, Plant and Equipment
|
|
|
159
|
|
|
188
|
Other Noncurrent Assets
|
|
|
98
|
|
|
118
|
Total Assets
|
|
$
|
380
|
|
$
|
424
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current Liabilities
|
|
$
|
92
|
|
$
|
103
|
Noncurrent Liabilities
|
|
|
288
|
|
|
321
|
Equity
|
|
|
-
|
|
|
-
|
Total Liabilities and Equity
|
|
$
|
380
|
|
$
|
424
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||
|
|
As Reported on
|
|
Maximum
|
|
As Reported on
|
|
Maximum
|
||||
|
|
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
|
Exposure
|
||||||
|
|
(in millions)
|
||||||||||
Capital Contribution from SWEPCo
|
|
$
|
8
|
|
$
|
8
|
|
$
|
8
|
|
$
|
8
|
Retained Earnings
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
SWEPCo's Guarantee of Debt
|
|
|
-
|
|
|
54
|
|
|
-
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment in DHLC
|
|
$
|
9
|
|
$
|
63
|
|
$
|
9
|
|
$
|
61
|
|
|
Three Months Ended March 31,
|
||||
Company
|
|
2012
|
|
2011
|
||
|
|
(in thousands)
|
||||
APCo
|
|
$
|
38,546
|
|
$
|
44,941
|
I&M
|
|
|
26,107
|
|
|
31,827
|
OPCo
|
|
|
53,445
|
|
|
63,877
|
PSO
|
|
|
17,596
|
|
|
19,418
|
SWEPCo
|
|
|
26,720
|
|
|
29,833
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||
|
|
As Reported on the
|
|
Maximum
|
|
As Reported on the
|
|
Maximum
|
||||
Company
|
|
Balance Sheet
|
|
Exposure
|
|
Balance Sheet
|
|
Exposure
|
||||
|
|
(in thousands)
|
||||||||||
APCo
|
|
$
|
11,634
|
|
$
|
11,634
|
|
$
|
20,812
|
|
$
|
20,812
|
I&M
|
|
|
8,226
|
|
|
8,226
|
|
|
13,741
|
|
|
13,741
|
OPCo
|
|
|
23,565
|
|
|
23,565
|
|
|
29,823
|
|
|
29,823
|
PSO
|
|
|
5,315
|
|
|
5,315
|
|
|
9,280
|
|
|
9,280
|
SWEPCo
|
|
|
7,944
|
|
|
7,944
|
|
|
14,699
|
|
|
14,699
|
|
|
Three Months Ended March 31,
|
||||
Company
|
|
2012
|
|
2011
|
||
|
|
(in thousands)
|
||||
I&M
|
|
$
|
58,822
|
|
$
|
52,821
|
OPCo
|
|
|
58,417
|
|
|
51,034
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||
|
|
As Reported on
|
|
Maximum
|
|
As Reported on
|
|
Maximum
|
||||
Company
|
|
the Balance Sheet
|
|
Exposure
|
|
the Balance Sheet
|
|
Exposure
|
||||
|
|
(in thousands)
|
||||||||||
I&M
|
|
$
|
15,527
|
|
$
|
15,527
|
|
$
|
25,731
|
|
$
|
25,731
|
OPCo
|
|
|
17,492
|
|
|
17,492
|
|
|
22,139
|
|
|
22,139
|
|
|
|
|
|
APCo
|
|
I&M
|
|||||||||||||||||||||
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
December 31,
|
|||||||||||||||||
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|||||||||||||||||
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Deferred Wind Power Costs
|
|
$
|
43,642
|
|
$
|
38,192
|
|
$
|
-
|
|
$
|
-
|
||||||||||||||
|
|
Virginia Environmental Rate Adjustment Clause
|
|
|
21,412
|
|
|
17,950
|
|
|
-
|
|
|
-
|
||||||||||||||
|
|
Mountaineer Carbon Capture and Storage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Product Validation Facility
|
|
|
14,155
|
|
|
14,155
|
|
|
-
|
|
|
-
|
|||||||||||||
|
|
Special Rate Mechanism for Century Aluminum
|
|
|
12,880
|
|
|
12,811
|
|
|
-
|
|
|
-
|
||||||||||||||
|
|
Dresden Operating Costs
|
|
|
2,737
|
|
|
-
|
|
|
-
|
|
|
-
|
||||||||||||||
|
|
Transmission Agreement Phase-In
|
|
|
2,218
|
|
|
1,925
|
|
|
-
|
|
|
-
|
||||||||||||||
|
|
Mountaineer Carbon Capture and Storage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Commercial Scale Facility
|
|
|
1,329
|
|
|
1,335
|
|
|
1,432
|
|
|
1,680
|
|||||||||||||
|
|
Litigation Settlement
|
|
|
-
|
|
|
-
|
|
|
10,880
|
|
|
10,803
|
||||||||||||||
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
1,439
|
|
|
1,010
|
|
|
-
|
|
|
-
|
||||||||||||||
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
99,812
|
|
$
|
87,378
|
|
$
|
12,312
|
|
$
|
12,483
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
OPCo
|
|
|
|||||||||||||||||||||
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|||||||||||||||||
|
Noncurrent Regulatory Assets (excluding fuel)
|
|
(in thousands)
|
|
|
|||||||||||||||||||||||
|
Regulatory assets not yet being recovered
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
pending future proceedings to determine
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
the recovery method and timing:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Regulatory Assets Currently Earning a Return
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Economic Development Rider
|
|
$
|
12,732
|
|
$
|
12,572
|
|
|
|
|
|
|
||||||||||||||
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Storm Related Costs
|
|
|
-
|
|
|
8,375
|
|
|
|
|
|
|
||||||||||||||
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
12,732
|
|
$
|
20,947
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
PSO
|
|
SWEPCo
|
|||||||||||||||||||||
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
December 31,
|
|||||||||||||||||
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|||||||||||||||||
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Mountaineer Carbon Capture and Storage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Commercial Scale Facility
|
|
$
|
-
|
|
$
|
-
|
|
$
|
2,369
|
|
$
|
2,380
|
|||||||||||||
|
|
Rate Case Expenses
|
|
|
-
|
|
|
-
|
|
|
1,701
|
|
|
-
|
||||||||||||||
|
|
Other Regulatory Assets Not Yet Being Recovered
|
|
|
-
|
|
|
-
|
|
|
1,928
|
|
|
1,699
|
||||||||||||||
|
Total Regulatory Assets Not Yet Being Recovered
|
|
$
|
-
|
|
$
|
-
|
|
$
|
5,998
|
|
$
|
4,079
|
2011 Indiana Base Rate Case
|
Seams Elimination Cost Allocation (SECA) Revenue Subject to Refund – Affecting APCo, I&M and OPCo
|
Company
|
(in millions)
|
|||
APCo
|
$ | 70.2 | ||
I&M
|
41.3 | |||
OPCo
|
92.1 |
Company
|
(in millions)
|
|||
APCo
|
$ | 14.1 | ||
I&M
|
8.3 | |||
OPCo
|
18.5 |
Company
|
March 31, 2012
|
||||
|
(in millions)
|
||||
APCo
|
$ | 10.0 | |||
I&M
|
5.9 | ||||
OPCo
|
13.2 |
|
Potential
|
Potential
|
|||||||
|
Refund
|
Payments to
|
|||||||
Company
|
Payments
|
be Received
|
|||||||
|
(in millions)
|
||||||||
APCo
|
$ | 6.4 | $ | 3.2 | |||||
I&M
|
3.7 | 1.9 | |||||||
OPCo
|
8.3 | 4.2 |
Possible Termination of the Interconnection Agreement – Affecting APCo, I&M and OPCo
|
Company
|
|
Amount
|
|
Maturity
|
|
|
|
(in thousands)
|
|
|
|
I&M
|
|
$
|
150
|
|
March 2013
|
SWEPCo
|
|
|
4,448
|
|
March 2013
|
|
|
Bilateral
|
Maturity of
|
|||||||
|
Pollution
|
Letters
|
Bilateral Letters
|
|||||||
Company
|
Control Bonds
|
of Credit
|
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 | 50,575 |
March 2013
|
|
|
Maximum
|
|
Company
|
|
Potential Loss
|
|
|
|
(in thousands)
|
|
APCo
|
|
$
|
2,295
|
I&M
|
|
|
2,197
|
OPCo
|
|
|
2,870
|
PSO
|
|
|
898
|
SWEPCo
|
|
|
2,242
|
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,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,891 | $ | 1,800 | $ | 1,347 | $ | 1,246 | ||||||||
Interest Cost
|
7,553 | 8,070 | 4,616 | 4,867 | ||||||||||||
Expected Return on Plan Assets
|
(10,486 | ) | (10,458 | ) | (4,188 | ) | (4,496 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 200 | 286 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
119 | 229 | (716 | ) | (43 | ) | ||||||||||
Amortization of Net Actuarial Loss
|
5,085 | 4,141 | 2,631 | 1,455 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 4,162 | $ | 3,782 | $ | 3,890 | $ | 3,315 |
I&M
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 2,477 | $ | 2,358 | $ | 1,655 | $ | 1,530 | ||||||||
Interest Cost
|
6,561 | 6,929 | 3,196 | 3,403 | ||||||||||||
Expected Return on Plan Assets
|
(9,391 | ) | (9,214 | ) | (3,211 | ) | (3,472 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 33 | 47 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
102 | 186 | (596 | ) | (59 | ) | ||||||||||
Amortization of Net Actuarial Loss
|
4,392 | 3,534 | 1,762 | 891 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 4,141 | $ | 3,793 | $ | 2,839 | $ | 2,340 |
OPCo
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 2,751 | $ | 2,557 | $ | 2,187 | $ | 1,957 | ||||||||
Interest Cost
|
11,298 | 12,078 | 6,047 | 6,375 | ||||||||||||
Expected Return on Plan Assets
|
(17,100 | ) | (16,366 | ) | (5,639 | ) | (6,129 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | 26 | 37 | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
186 | 368 | (968 | ) | (53 | ) | ||||||||||
Amortization of Net Actuarial Loss
|
7,610 | 6,200 | 3,417 | 1,804 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 4,745 | $ | 4,837 | $ | 5,070 | $ | 3,991 |
PSO
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,488 | $ | 1,438 | $ | 709 | $ | 655 | ||||||||
Interest Cost
|
3,075 | 3,305 | 1,449 | 1,512 | ||||||||||||
Expected Return on Plan Assets
|
(4,504 | ) | (4,366 | ) | (1,480 | ) | (1,566 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | - | - | ||||||||||||
Amortization of Prior Service Credit
|
(237 | ) | (236 | ) | (270 | ) | (19 | ) | ||||||||
Amortization of Net Actuarial Loss
|
2,052 | 1,678 | 797 | 388 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 1,874 | $ | 1,819 | $ | 1,205 | $ | 970 |
SWEPCo
|
|
Other Postretirement
|
||||||||||||||
|
Pension Plans
|
Benefit Plans
|
||||||||||||||
|
Three Months Ended March 31,
|
Three Months Ended March 31,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Service Cost
|
$ | 1,775 | $ | 1,642 | $ | 831 | $ | 757 | ||||||||
Interest Cost
|
3,134 | 3,318 | 1,668 | 1,742 | ||||||||||||
Expected Return on Plan Assets
|
(4,717 | ) | (4,595 | ) | (1,699 | ) | (1,800 | ) | ||||||||
Amortization of Transition Obligation
|
- | - | - | - | ||||||||||||
Amortization of Prior Service Cost (Credit)
|
(198 | ) | (198 | ) | (233 | ) | 65 | |||||||||
Amortization of Net Actuarial Loss
|
2,083 | 1,680 | 915 | 446 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 2,077 | $ | 1,847 | $ | 1,482 | $ | 1,210 |
Notional Volume of Derivative Instruments
|
|||||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Primary Risk
|
Unit of
|
|
|
|
|
|
|||||||||||||||||
Exposure
|
Measure
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||||||
|
|
(in thousands)
|
|||||||||||||||||||||
Commodity:
|
|
|
|
|
|
|
|||||||||||||||||
Power
|
MWHs
|
133,928 | 94,735 | 197,496 | 41 | 51 | |||||||||||||||||
Coal
|
Tons
|
3,196 | 2,251 | 6,623 | 2,686 | 3,449 | |||||||||||||||||
Natural Gas
|
MMBtus
|
12,247 | 8,613 | 18,058 | 102 | 129 | |||||||||||||||||
Heating Oil and
|
|
||||||||||||||||||||||
Gasoline
|
Gallons
|
765 | 387 | 916 | 448 | 425 | |||||||||||||||||
Interest Rate
|
USD
|
$ | 22,555 | $ | 15,865 | $ | 33,261 | $ | - | $ | - | ||||||||||||
|
|
||||||||||||||||||||||
Interest Rate and
|
|
||||||||||||||||||||||
Foreign Currency
|
USD
|
$ | - | $ | 200,000 | $ | - | $ | - | $ | 69 | ||||||||||||
|
|
||||||||||||||||||||||
Notional Volume of Derivative Instruments
|
|||||||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
Primary Risk
|
Unit of
|
||||||||||||||||||||||
Exposure
|
Measure
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||||||
|
|
(in thousands)
|
|||||||||||||||||||||
Commodity:
|
|
||||||||||||||||||||||
Power
|
MWHs
|
169,459 | 109,326 | 229,468 | 39 | 49 | |||||||||||||||||
Coal
|
Tons
|
3,714 | 1,920 | 8,337 | 3,574 | 2,974 | |||||||||||||||||
Natural Gas
|
MMBtus
|
7,923 | 5,081 | 10,728 | 115 | 145 | |||||||||||||||||
Heating Oil and
|
|
||||||||||||||||||||||
Gasoline
|
Gallons
|
1,057 | 525 | 1,254 | 618 | 569 | |||||||||||||||||
Interest Rate
|
USD
|
$ | 31,029 | $ | 19,890 | $ | 42,093 | $ | 175 | $ | 203 | ||||||||||||
|
|
||||||||||||||||||||||
Interest Rate and
|
|
||||||||||||||||||||||
Foreign Currency
|
USD
|
$ | - | $ | 200,000 | $ | - | $ | - | $ | 200,069 |
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND THE IMPACT ON THE FINANCIAL STATEMENTS
|
|
March 31, 2012
|
December 31, 2011
|
|||||||||||||||
|
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
|
$ | 2,564 | $ | 23,891 | $ | 4,291 | $ | 28,964 | |||||||||
I&M
|
1,803 | 16,804 | 2,752 | 18,547 | |||||||||||||
OPCo
|
3,781 | 35,231 | 5,810 | 39,183 | |||||||||||||
PSO
|
56 | 15 | 53 | 130 | |||||||||||||
SWEPCo
|
71 | 19 | 66 | 124 |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
APCo
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 344,011 | $ | 1,441 | $ | - | $ | (295,932 | ) | $ | 49,520 | ||||||||||
Long-term Risk Management Assets
|
125,333 | 257 | - | (79,541 | ) | 46,049 | |||||||||||||||
Total Assets
|
469,344 | 1,698 | - | (375,473 | ) | 95,569 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
340,686 | 4,445 | - | (312,084 | ) | 33,047 | |||||||||||||||
Long-term Risk Management Liabilities
|
107,485 | 456 | - | (85,970 | ) | 21,971 | |||||||||||||||
Total Liabilities
|
448,171 | 4,901 | - | (398,054 | ) | 55,018 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | 21,173 | $ | (3,203 | ) | $ | - | $ | 22,581 | $ | 40,551 | ||||||||||
|
|||||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||||
|
|||||||||||||||||||||
APCo
|
|||||||||||||||||||||
|
Risk
|
||||||||||||||||||||
|
Management
|
||||||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|||||||||||||||||||
|
Interest Rate
|
||||||||||||||||||||
|
and Foreign
|
||||||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 232,784 | $ | 1,040 | $ | - | $ | (194,179 | ) | $ | 39,645 | ||||||||||
Long-term Risk Management Assets
|
99,751 | 90 | - | (60,615 | ) | 39,226 | |||||||||||||||
Total Assets
|
332,535 | 1,130 | - | (254,794 | ) | 78,871 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
235,354 | 2,767 | - | (211,515 | ) | 26,606 | |||||||||||||||
Long-term Risk Management Liabilities
|
82,058 | 350 | - | (69,485 | ) | 12,923 | |||||||||||||||
Total Liabilities
|
317,412 | 3,117 | - | (281,000 | ) | 39,529 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | 15,123 | $ | (1,987 | ) | $ | - | $ | 26,206 | $ | 39,342 |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
I&M
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 252,201 | $ | 985 | $ | - | $ | (208,167 | ) | $ | 45,019 | ||||||||||
Long-term Risk Management Assets
|
90,330 | 181 | - | (55,948 | ) | 34,563 | |||||||||||||||
Total Assets
|
342,531 | 1,166 | - | (264,115 | ) | 79,582 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
239,641 | 3,126 | 6,026 | (219,528 | ) | 29,265 | |||||||||||||||
Long-term Risk Management Liabilities
|
75,604 | 321 | - | (60,470 | ) | 15,455 | |||||||||||||||
Total Liabilities
|
315,245 | 3,447 | 6,026 | (279,998 | ) | 44,720 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | 27,286 | $ | (2,281 | ) | $ | (6,026 | ) | $ | 15,883 | $ | 34,862 |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
I&M
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 154,628 | $ | 667 | $ | - | $ | (123,143 | ) | $ | 32,152 | ||||||||||
Long-term Risk Management Assets
|
68,047 | 58 | - | (38,743 | ) | 29,362 | |||||||||||||||
Total Assets
|
222,675 | 725 | - | (161,886 | ) | 61,514 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
149,466 | 1,747 | - | (134,233 | ) | 16,980 | |||||||||||||||
Long-term Risk Management Liabilities
|
52,441 | 224 | 10,637 | (44,431 | ) | 18,871 | |||||||||||||||
Total Liabilities
|
201,907 | 1,971 | 10,637 | (178,664 | ) | 35,851 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | 20,768 | $ | (1,246 | ) | $ | (10,637 | ) | $ | 16,778 | $ | 25,663 |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
OPCo
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 519,383 | $ | 2,092 | $ | - | $ | (447,700 | ) | $ | 73,775 | ||||||||||
Long-term Risk Management Assets
|
185,883 | 379 | - | (117,998 | ) | 68,264 | |||||||||||||||
Total Assets
|
705,266 | 2,471 | - | (565,698 | ) | 142,039 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
514,421 | 6,557 | - | (471,518 | ) | 49,460 | |||||||||||||||
Long-term Risk Management Liabilities
|
159,468 | 674 | - | (127,480 | ) | 32,662 | |||||||||||||||
Total Liabilities
|
673,889 | 7,231 | - | (598,998 | ) | 82,122 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | 31,377 | $ | (4,760 | ) | $ | - | $ | 33,300 | $ | 59,917 |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
OPCo
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 325,904 | $ | 1,409 | $ | - | $ | (273,020 | ) | $ | 54,293 | ||||||||||
Long-term Risk Management Assets
|
136,519 | 122 | - | (83,027 | ) | 53,614 | |||||||||||||||
Total Assets
|
462,423 | 1,531 | - | (356,047 | ) | 107,907 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
329,307 | 3,712 | - | (296,458 | ) | 36,561 | |||||||||||||||
Long-term Risk Management Liabilities
|
112,454 | 474 | - | (95,038 | ) | 17,890 | |||||||||||||||
Total Liabilities
|
441,761 | 4,186 | - | (391,496 | ) | 54,451 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | 20,662 | $ | (2,655 | ) | $ | - | $ | 35,449 | $ | 53,456 |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
PSO
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 8,887 | $ | 89 | $ | - | $ | (8,116 | ) | $ | 860 | ||||||||||
Long-term Risk Management Assets
|
755 | - | - | (500 | ) | 255 | |||||||||||||||
Total Assets
|
9,642 | 89 | - | (8,616 | ) | 1,115 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
12,134 | - | - | (8,075 | ) | 4,059 | |||||||||||||||
Long-term Risk Management Liabilities
|
3,910 | - | - | (500 | ) | 3,410 | |||||||||||||||
Total Liabilities
|
16,044 | - | - | (8,575 | ) | 7,469 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | (6,402 | ) | $ | 89 | $ | - | $ | (41 | ) | $ | (6,354 | ) |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
PSO
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 6,980 | $ | - | $ | - | $ | (6,415 | ) | $ | 565 | ||||||||||
Long-term Risk Management Assets
|
914 | - | - | (600 | ) | 314 | |||||||||||||||
Total Assets
|
7,894 | - | - | (7,015 | ) | 879 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
7,665 | 107 | - | (6,492 | ) | 1,280 | |||||||||||||||
Long-term Risk Management Liabilities
|
1,930 | - | - | (600 | ) | 1,330 | |||||||||||||||
Total Liabilities
|
9,595 | 107 | - | (7,092 | ) | 2,610 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | (1,701 | ) | $ | (107 | ) | $ | - | $ | 77 | $ | (1,731 | ) |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
SWEPCo
|
|
|
|
|
|
||||||||||||||||
|
Risk
|
|
|
|
|
||||||||||||||||
|
Management
|
|
|
|
|
||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|
|
|||||||||||||||||
|
|
|
Interest Rate
|
|
|
||||||||||||||||
|
|
|
and Foreign
|
|
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 14,625 | $ | 86 | $ | 5 | $ | (13,519 | ) | $ | 1,197 | ||||||||||
Long-term Risk Management Assets
|
1,253 | - | - | (830 | ) | 423 | |||||||||||||||
Total Assets
|
15,878 | 86 | 5 | (14,349 | ) | 1,620 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
24,200 | - | - | (13,467 | ) | 10,733 | |||||||||||||||
Long-term Risk Management Liabilities
|
1,139 | - | - | (830 | ) | 309 | |||||||||||||||
Total Liabilities
|
25,339 | - | - | (14,297 | ) | 11,042 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | (9,461 | ) | $ | 86 | $ | 5 | $ | (52 | ) | $ | (9,422 | ) |
Fair Value of Derivative Instruments
|
|||||||||||||||||||||
December 31, 2011
|
|||||||||||||||||||||
|
|||||||||||||||||||||
SWEPCo
|
|||||||||||||||||||||
|
Risk
|
||||||||||||||||||||
|
Management
|
||||||||||||||||||||
|
Contracts
|
Hedging Contracts
|
|||||||||||||||||||
|
Interest Rate
|
||||||||||||||||||||
|
and Foreign
|
||||||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Other (b)
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Current Risk Management Assets
|
$ | 6,327 | $ | - | $ | 3 | $ | (5,885 | ) | $ | 445 | ||||||||||
Long-term Risk Management Assets
|
818 | - | - | (536 | ) | 282 | |||||||||||||||
Total Assets
|
7,145 | - | 3 | (6,421 | ) | 727 | |||||||||||||||
|
|||||||||||||||||||||
Current Risk Management Liabilities
|
11,062 | 97 | 19,143 | (5,943 | ) | 24,359 | |||||||||||||||
Long-term Risk Management Liabilities
|
757 | - | - | (536 | ) | 221 | |||||||||||||||
Total Liabilities
|
11,819 | 97 | 19,143 | (6,479 | ) | 24,580 | |||||||||||||||
|
|||||||||||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||||
Assets (Liabilities)
|
$ | (4,674 | ) | $ | (97 | ) | $ | (19,140 | ) | $ | 58 | $ | (23,853 | ) |
(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 de-designated risk management contracts.
|
Amount of Gain (Loss) Recognized on
|
|||||||||||||||||||||
Risk Management Contracts
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2012
|
|||||||||||||||||||||
|
|||||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Electric Generation, Transmission and
|
|
|
|
|
|
||||||||||||||||
Distribution Revenues
|
$ | (327 | ) | $ | 2,813 | $ | 8,493 | $ | (5 | ) | $ | (51 | ) | ||||||||
Sales to AEP Affiliates
|
- | - | - | - | - | ||||||||||||||||
Fuel and Other Consumables Used for
|
|||||||||||||||||||||
Electric Generation
|
- | - | - | - | - | ||||||||||||||||
Regulatory Assets (a)
|
(3,481 | ) | (3,110 | ) | (3,131 | ) | (5,201 | ) | (6,727 | ) | |||||||||||
Regulatory Liabilities (a)
|
6,409 | 6,726 | - | 27 | 21 | ||||||||||||||||
Total Gain (Loss) on Risk Management
|
|||||||||||||||||||||
Contracts
|
$ | 2,601 | $ | 6,429 | $ | 5,362 | $ | (5,179 | ) | $ | (6,757 | ) |
Amount of Gain (Loss) Recognized on
|
|||||||||||||||||||||
Risk Management Contracts
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2011
|
|||||||||||||||||||||
|
|||||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Electric Generation, Transmission and
|
|||||||||||||||||||||
Distribution Revenues
|
$ | 1,816 | $ | 5,415 | $ | 10,590 | $ | 119 | $ | 123 | |||||||||||
Sales to AEP Affiliates
|
20 | 17 | 32 | 1 | 1 | ||||||||||||||||
Fuel and Other Consumables Used for
|
|||||||||||||||||||||
Electric Generation
|
- | - | - | - | - | ||||||||||||||||
Regulatory Assets (a)
|
373 | 186 | 395 | (368 | ) | 1,642 | |||||||||||||||
Regulatory Liabilities (a)
|
6,754 | 360 | (105 | ) | 392 | 340 | |||||||||||||||
Total Gain (Loss) on Risk Management
|
|||||||||||||||||||||
Contracts
|
$ | 8,963 | $ | 5,978 | $ | 10,912 | $ | 144 | $ | 2,106 |
(a)
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets. |
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2012
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Commodity Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Balance in AOCI as of December 31, 2011
|
$ | (1,309 | ) | $ | (819 | ) | $ | (1,748 | ) | $ | (69 | ) | $ | (62 | ) | ||||||
Changes in Fair Value Recognized in AOCI
|
(1,845 | ) | (1,394 | ) | (2,877 | ) | 139 | 132 | |||||||||||||
Amount of (Gain) or Loss Reclassified
|
|||||||||||||||||||||
from AOCI to Statement of Income/within
|
|||||||||||||||||||||
Balance Sheet:
|
|||||||||||||||||||||
Electric Generation, Transmission, and
|
|||||||||||||||||||||
Distribution Revenues
|
- | - | - | - | - | ||||||||||||||||
Fuel and Other Consumables Used for
|
|||||||||||||||||||||
Electric Generation
|
- | - | - | - | - | ||||||||||||||||
Purchased Electricity for Resale
|
219 | 567 | 1,486 | - | - | ||||||||||||||||
Other Operation Expense
|
(2 | ) | (2 | ) | (5 | ) | (2 | ) | (2 | ) | |||||||||||
Maintenance Expense
|
(3 | ) | (1 | ) | (2 | ) | - | (1 | ) | ||||||||||||
Property, Plant and Equipment
|
(2 | ) | (1 | ) | (3 | ) | (1 | ) | (1 | ) | |||||||||||
Regulatory Assets (a)
|
825 | 142 | - | - | - | ||||||||||||||||
Regulatory Liabilities (a)
|
- | - | - | - | - | ||||||||||||||||
Balance in AOCI as of March 31, 2012
|
$ | (2,117 | ) | $ | (1,508 | ) | $ | (3,149 | ) | $ | 67 | $ | 66 |
Interest Rate and
|
|||||||||||||||||||||
Foreign Currency Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Balance in AOCI as of December 31, 2011
|
$ | 1,024 | $ | (14,465 | ) | $ | 9,454 | $ | 7,218 | $ | (15,462 | ) | |||||||||
Changes in Fair Value Recognized in AOCI
|
- | 2,996 | - | - | (2,776 | ) | |||||||||||||||
Amount of (Gain) or Loss Reclassified
|
|||||||||||||||||||||
from AOCI to Statement of Income/within
|
|||||||||||||||||||||
Balance Sheet:
|
|||||||||||||||||||||
Depreciation and Amortization
|
|||||||||||||||||||||
Expense
|
- | - | 1 | - | - | ||||||||||||||||
Other Operation Expense
|
- | - | - | - | - | ||||||||||||||||
Interest Expense
|
269 | 149 | (341 | ) | (189 | ) | 873 | ||||||||||||||
Balance in AOCI as of March 31, 2012
|
$ | 1,293 | $ | (11,320 | ) | $ | 9,114 | $ | 7,029 | $ | (17,365 | ) |
Total Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Balance in AOCI as of December 31, 2011
|
$ | (285 | ) | $ | (15,284 | ) | $ | 7,706 | $ | 7,149 | $ | (15,524 | ) | ||||||||
Changes in Fair Value Recognized in AOCI
|
(1,845 | ) | 1,602 | (2,877 | ) | 139 | (2,644 | ) | |||||||||||||
Amount of (Gain) or Loss Reclassified
|
|||||||||||||||||||||
from AOCI to Statement of Income/within
|
|||||||||||||||||||||
Balance Sheet:
|
|||||||||||||||||||||
Electric Generation, Transmission, and
|
|||||||||||||||||||||
Distribution Revenues
|
- | - | - | - | - | ||||||||||||||||
Fuel and Other Consumables Used for
|
|||||||||||||||||||||
Electric Generation
|
- | - | - | - | - | ||||||||||||||||
Purchased Electricity for Resale
|
219 | 567 | 1,486 | - | - | ||||||||||||||||
Other Operation Expense
|
(2 | ) | (2 | ) | (5 | ) | (2 | ) | (2 | ) | |||||||||||
Maintenance Expense
|
(3 | ) | (1 | ) | (2 | ) | - | (1 | ) | ||||||||||||
Depreciation and Amortization
|
|||||||||||||||||||||
Expense
|
- | - | 1 | - | - | ||||||||||||||||
Interest Expense
|
269 | 149 | (341 | ) | (189 | ) | 873 | ||||||||||||||
Property, Plant and Equipment
|
(2 | ) | (1 | ) | (3 | ) | (1 | ) | (1 | ) | |||||||||||
Regulatory Assets (a)
|
825 | 142 | - | - | - | ||||||||||||||||
Regulatory Liabilities (a)
|
- | - | - | - | - | ||||||||||||||||
Balance in AOCI as of March 31, 2012
|
$ | (824 | ) | $ | (12,828 | ) | $ | 5,965 | $ | 7,096 | $ | (17,299 | ) |
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||||||||||||
For the Three Months Ended March 31, 2011
|
|||||||||||||||||||||
|
|||||||||||||||||||||
Commodity Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Balance in AOCI as of December 31, 2010
|
$ | (273 | ) | $ | (178 | ) | $ | (364 | ) | $ | 88 | $ | 82 | ||||||||
Changes in Fair Value Recognized in AOCI
|
178 | 78 | 207 | 212 | 194 | ||||||||||||||||
Amount of (Gain) or Loss Reclassified
|
|||||||||||||||||||||
from AOCI to Statement of Income/within
|
|||||||||||||||||||||
Balance Sheet:
|
|||||||||||||||||||||
Electric Generation, Transmission, and
|
|||||||||||||||||||||
Distribution Revenues
|
(4 | ) | (10 | ) | (26 | ) | - | - | |||||||||||||
Fuel and Other Consumables Used for
|
|||||||||||||||||||||
Electric Generation
|
- | - | - | - | - | ||||||||||||||||
Purchased Electricity for Resale
|
87 | 194 | 521 | - | - | ||||||||||||||||
Other Operation Expense
|
(13 | ) | (9 | ) | (23 | ) | (13 | ) | (13 | ) | |||||||||||
Maintenance Expense
|
(25 | ) | (10 | ) | (19 | ) | (7 | ) | (8 | ) | |||||||||||
Property, Plant and Equipment
|
(23 | ) | (11 | ) | (27 | ) | (16 | ) | (11 | ) | |||||||||||
Regulatory Assets (a)
|
311 | 47 | - | - | - | ||||||||||||||||
Regulatory Liabilities (a)
|
- | - | - | - | - | ||||||||||||||||
Balance in AOCI as of March 31, 2011
|
$ | 238 | $ | 101 | $ | 269 | $ | 264 | $ | 244 |
Interest Rate and
|
|||||||||||||||||||||
Foreign Currency Contracts
|
APCo
|
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 Statement of Income/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
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
Balance in AOCI as of December 31, 2010
|
$ | (56 | ) | $ | (8,685 | ) | $ | 10,449 | $ | 8,494 | $ | (4,190 | ) | ||||||||
Changes in Fair Value Recognized in AOCI
|
(195 | ) | 78 | 207 | (264 | ) | 201 | ||||||||||||||
Amount of (Gain) or Loss Reclassified
|
|||||||||||||||||||||
from AOCI to Statement of Income/within
|
|||||||||||||||||||||
Balance Sheet:
|
|||||||||||||||||||||
Electric Generation, Transmission, and
|
|||||||||||||||||||||
Distribution Revenues
|
(4 | ) | (10 | ) | (26 | ) | - | - | |||||||||||||
Fuel and Other Consumables Used for
|
|||||||||||||||||||||
Electric Generation
|
- | - | - | - | - | ||||||||||||||||
Purchased Electricity for Resale
|
87 | 194 | 521 | - | - | ||||||||||||||||
Other Operation Expense
|
(13 | ) | (9 | ) | (23 | ) | (13 | ) | (13 | ) | |||||||||||
Maintenance Expense
|
(25 | ) | (10 | ) | (19 | ) | (7 | ) | (8 | ) | |||||||||||
Depreciation and Amortization
|
|||||||||||||||||||||
Expense
|
- | - | 1 | - | - | ||||||||||||||||
Interest Expense
|
373 | 252 | (341 | ) | (143 | ) | 207 | ||||||||||||||
Property, Plant and Equipment
|
(23 | ) | (11 | ) | (27 | ) | (16 | ) | (11 | ) | |||||||||||
Regulatory Assets (a)
|
311 | 47 | - | - | - | ||||||||||||||||
Regulatory Liabilities (a)
|
- | - | - | - | - | ||||||||||||||||
Balance in AOCI as of March 31, 2011
|
$ | 455 | $ | (8,154 | ) | $ | 10,742 | $ | 8,051 | $ | (3,814 | ) |
(a)
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current
or noncurrent on the condensed balance sheets.
|
Impact of Cash Flow Hedges on the Registrant Subsidiaries’
|
|||||||||||||||||||||||||
Condensed Balance Sheets
|
|||||||||||||||||||||||||
March 31, 2012
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
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
|
$ | 1,166 | $ | - | $ | 4,369 | $ | - | $ | (2,117 | ) | $ | 1,293 | ||||||||||||
I&M
|
792 | - | 3,073 | 6,026 | (1,508 | ) | (11,320 | ) | |||||||||||||||||
OPCo
|
1,683 | - | 6,443 | - | (3,149 | ) | 9,114 | ||||||||||||||||||
PSO
|
89 | - | - | - | 67 | 7,029 | |||||||||||||||||||
SWEPCo
|
86 | 5 | - | - | 66 | (17,365 | ) |
|
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
|
$ | (1,986 | ) | $ | (1,037 | ) | 26 | ||||||
I&M
|
(1,419 | ) | (612 | ) | 26 | ||||||||
OPCo
|
(2,957 | ) | 1,359 | 26 | |||||||||
PSO
|
67 | 759 | 9 | ||||||||||
SWEPCo
|
66 | (2,410 | ) | 9 |
Impact of Cash Flow Hedges on the Registrant Subsidiaries’
|
|||||||||||||||||||||||||
Condensed Balance Sheets
|
|||||||||||||||||||||||||
December 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
|
$ | 431 | $ | - | $ | 2,418 | $ | - | $ | (1,309 | ) | $ | 1,024 | ||||||||||||
I&M
|
277 | - | 1,523 | 10,637 | (819 | ) | (14,465 | ) | |||||||||||||||||
OPCo
|
584 | - | 3,239 | - | (1,748 | ) | 9,454 | ||||||||||||||||||
PSO
|
- | - | 107 | - | (69 | ) | 7,218 | ||||||||||||||||||
SWEPCo
|
- | 3 | 97 | 19,143 | (62 | ) | (15,462 | ) |
|
Expected to be Reclassified to
|
||||||||
|
Net Income During the Next
|
||||||||
|
Twelve Months
|
||||||||
|
|
Interest Rate
|
|||||||
|
|
and Foreign
|
|||||||
Company
|
Commodity
|
Currency
|
|||||||
|
(in thousands)
|
||||||||
APCo
|
$ | (1,140 | ) | $ | (1,052 | ) | |||
I&M
|
(712 | ) | (595 | ) | |||||
OPCo
|
(1,518 | ) | 1,359 | ||||||
PSO
|
(70 | ) | 759 | ||||||
SWEPCo
|
(63 | ) | (1,864 | ) |
Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the condensed balance sheets.
|
|
March 31, 2012
|
|||||||||
|
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
|
$ | 6,219 | $ | 7,611 | $ | 7,611 | ||||
I&M
|
4,374 | 5,353 | 5,353 | |||||||
OPCo
|
9,171 | 11,223 | 11,223 | |||||||
PSO
|
- | 5,355 | 4,686 | |||||||
SWEPCo
|
- | 6,975 | 5,906 |
|
December 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
|
$ | 10,007 | $ | 6,211 | $ | 6,211 | ||||
I&M
|
6,418 | 3,983 | 3,983 | |||||||
OPCo
|
13,550 | 8,410 | 8,410 | |||||||
PSO
|
- | 856 | 414 | |||||||
SWEPCo
|
- | 1,128 | 522 |
|
March 31, 2012
|
|||||||||
|
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
|
$ | 121,922 | $ | 518 | $ | 43,565 | ||||
I&M
|
91,784 | 365 | 36,669 | |||||||
OPCo
|
179,790 | 764 | 64,242 | |||||||
PSO
|
181 | - | 86 | |||||||
SWEPCo
|
228 | - | 108 |
|
December 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
|
$ | 76,868 | $ | 8,107 | $ | 27,603 | ||||
I&M
|
59,936 | 5,200 | 28,339 | |||||||
OPCo
|
104,091 | 10,978 | 37,380 | |||||||
PSO
|
142 | - | 61 | |||||||
SWEPCo
|
19,322 | - | 19,220 |
|
March 31, 2012
|
December 31, 2011
|
|||||||||||||||
Company
|
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
APCo
|
$ | 3,676,934 | $ | 4,224,974 | $ | 3,726,251 | $ | 4,431,912 | |||||||||
I&M
|
2,041,741 | 2,268,828 | 2,057,675 | 2,339,344 | |||||||||||||
OPCo
|
3,904,346 | 4,398,892 | 4,054,148 | 4,665,739 | |||||||||||||
PSO
|
949,393 | 1,087,296 | 947,364 | 1,123,306 | |||||||||||||
SWEPCo
|
2,047,587 | 2,277,018 | 1,728,637 | 2,019,094 |
·
|
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, 2012
|
|
December 31, 2011
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
$
|
19,159
|
|
$
|
-
|
|
$
|
-
|
|
$
|
18,229
|
|
$
|
-
|
|
$
|
-
|
||||||||||||||||||||||||||||||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
United States Government
|
|
|
547,708
|
|
|
49,101
|
|
|
(709)
|
|
|
543,506
|
|
|
60,946
|
|
|
(547)
|
|||||||||||||||||||||||||||||
|
Corporate Debt
|
|
|
51,854
|
|
|
4,532
|
|
|
(1,489)
|
|
|
53,979
|
|
|
4,932
|
|
|
(1,536)
|
|||||||||||||||||||||||||||||
|
State and Local Government
|
|
|
323,194
|
|
|
380
|
|
|
(1,347)
|
|
|
329,986
|
|
|
(430)
|
|
|
(2,236)
|
|||||||||||||||||||||||||||||
|
Subtotal Fixed Income Securities
|
|
922,756
|
|
|
54,013
|
|
|
(3,545)
|
|
|
927,471
|
|
|
65,448
|
|
|
(4,319)
|
||||||||||||||||||||||||||||||
Equity Securities - Domestic
|
|
|
719,665
|
|
|
285,562
|
|
|
(80,055)
|
|
|
646,032
|
|
|
214,748
|
|
|
(79,536)
|
||||||||||||||||||||||||||||||
Spent Nuclear Fuel and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Decommissioning Trusts
|
|
$
|
1,661,580
|
|
$
|
339,575
|
|
$
|
(83,600)
|
|
$
|
1,591,732
|
|
$
|
280,196
|
|
$
|
(83,855)
|
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(in thousands)
|
|||||||
Proceeds from Investment Sales
|
$ | 334,400 | $ | 287,761 | ||||
Purchases of Investments
|
352,877 | 305,945 | ||||||
Gross Realized Gains on Investment Sales
|
1,552 | 5,013 | ||||||
Gross Realized Losses on Investment Sales
|
1,416 | 5,247 |
|
Fair Value
|
|||
|
of Debt
|
|||
|
Securities | |||
|
(in thousands)
|
|||
Within 1 year
|
$ | 39,247 | ||
1 year – 5 years
|
321,816 | |||
5 years – 10 years
|
340,738 | |||
After 10 years
|
220,955 | |||
Total
|
$ | 922,756 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
APCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 6,961 | $ | 430,518 | $ | 30,498 | $ | (374,828 | ) | $ | 93,149 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,671 | 26 | (531 | ) | 1,166 | ||||||||||||||
De-designated Risk Management Contracts (b)
|
- | - | - | 1,254 | 1,254 | |||||||||||||||
Total Risk Management Assets
|
$ | 6,961 | $ | 432,189 | $ | 30,524 | $ | (374,105 | ) | $ | 95,569 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 3,966 | $ | 420,306 | $ | 22,532 | $ | (396,155 | ) | $ | 50,649 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 4,889 | 11 | (531 | ) | 4,369 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 3,966 | $ | 425,195 | $ | 22,543 | $ | (396,686 | ) | $ | 55,018 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
APCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 4,680 | $ | 302,128 | $ | 25,423 | $ | (255,324 | ) | $ | 76,907 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,095 | - | (664 | ) | 431 | ||||||||||||||
De-designated Risk Management Contracts (b)
|
- | - | - | 1,533 | 1,533 | |||||||||||||||
Total Risk Management Assets
|
$ | 4,680 | $ | 303,223 | $ | 25,423 | $ | (254,455 | ) | $ | 78,871 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 2,535 | $ | 291,194 | $ | 23,379 | $ | (279,997 | ) | $ | 37,111 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 3,009 | 73 | (664 | ) | 2,418 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 2,535 | $ | 294,203 | $ | 23,452 | $ | (280,661 | ) | $ | 39,529 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
I&M
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 4,896 | $ | 315,221 | $ | 21,452 | $ | (263,661 | ) | $ | 77,908 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,148 | 18 | (374 | ) | 792 | ||||||||||||||
De-designated Risk Management Contracts (b)
|
- | - | - | 882 | 882 | |||||||||||||||
Total Risk Management Assets
|
4,896 | 316,369 | 21,470 | (263,153 | ) | 79,582 | ||||||||||||||
|
||||||||||||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||||||
Cash and Cash Equivalents (d)
|
- | 9,783 | - | 9,376 | 19,159 | |||||||||||||||
Fixed Income Securities:
|
||||||||||||||||||||
United States Government
|
- | 547,708 | - | - | 547,708 | |||||||||||||||
Corporate Debt
|
- | 51,854 | - | - | 51,854 | |||||||||||||||
State and Local Government
|
- | 323,194 | - | - | 323,194 | |||||||||||||||
Subtotal Fixed Income Securities
|
- | 922,756 | - | - | 922,756 | |||||||||||||||
Equity Securities - Domestic (e)
|
719,665 | - | - | - | 719,665 | |||||||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
719,665 | 932,539 | - | 9,376 | 1,661,580 | |||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 724,561 | $ | 1,248,908 | $ | 21,470 | $ | (253,777 | ) | $ | 1,741,162 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 2,790 | $ | 295,645 | $ | 15,848 | $ | (278,662 | ) | $ | 35,621 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 3,439 | 8 | (374 | ) | 3,073 | ||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 6,026 | - | - | 6,026 | |||||||||||||||
Total Risk Management Liabilities
|
$ | 2,790 | $ | 305,110 | $ | 15,856 | $ | (279,036 | ) | $ | 44,720 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
I&M
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 3,001 | $ | 203,175 | $ | 16,305 | $ | (162,227 | ) | $ | 60,254 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 702 | - | (425 | ) | 277 | ||||||||||||||
De-designated Risk Management Contracts (b)
|
- | - | - | 983 | 983 | |||||||||||||||
Total Risk Management Assets
|
3,001 | 203,877 | 16,305 | (161,669 | ) | 61,514 | ||||||||||||||
|
||||||||||||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||||||
Cash and Cash Equivalents (d)
|
- | 5,431 | - | 12,798 | 18,229 | |||||||||||||||
Fixed Income Securities:
|
||||||||||||||||||||
United States Government
|
- | 543,506 | - | - | 543,506 | |||||||||||||||
Corporate Debt
|
- | 53,979 | - | - | 53,979 | |||||||||||||||
State and Local Government
|
- | 329,986 | - | - | 329,986 | |||||||||||||||
Subtotal Fixed Income Securities
|
- | 927,471 | - | - | 927,471 | |||||||||||||||
Equity Securities - Domestic (e)
|
646,032 | - | - | - | 646,032 | |||||||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
646,032 | 932,902 | - | 12,798 | 1,591,732 | |||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 649,033 | $ | 1,136,779 | $ | 16,305 | $ | (148,871 | ) | $ | 1,653,246 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 1,626 | $ | 185,092 | $ | 14,995 | $ | (178,022 | ) | $ | 23,691 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,901 | 47 | (425 | ) | 1,523 | ||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 10,637 | - | - | 10,637 | |||||||||||||||
Total Risk Management Liabilities
|
$ | 1,626 | $ | 197,630 | $ | 15,042 | $ | (178,447 | ) | $ | 35,851 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
OPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Other Cash Deposits (c)
|
$ | 26 | $ | - | $ | - | $ | 39 | $ | 65 | ||||||||||
|
||||||||||||||||||||
Risk Management Assets
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
10,264 | 647,991 | 44,973 | (564,722 | ) | 138,506 | ||||||||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 2,429 | 37 | (783 | ) | 1,683 | ||||||||||||||
De-designated Risk Management Contracts (b)
|
- | - | - | 1,850 | 1,850 | |||||||||||||||
Total Risk Management Assets
|
10,264 | 650,420 | 45,010 | (563,655 | ) | 142,039 | ||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 10,290 | $ | 650,420 | $ | 45,010 | $ | (563,616 | ) | $ | 142,104 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 5,849 | $ | 632,776 | $ | 33,226 | $ | (596,172 | ) | $ | 75,679 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 7,209 | 17 | (783 | ) | 6,443 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 5,849 | $ | 639,985 | $ | 33,243 | $ | (596,955 | ) | $ | 82,122 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 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)
|
6,339 | 421,249 | 34,425 | (356,766 | ) | 105,247 | ||||||||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 1,483 | - | (899 | ) | 584 | ||||||||||||||
De-designated Risk Management Contracts (b)
|
- | - | - | 2,076 | 2,076 | |||||||||||||||
Total Risk Management Assets
|
6,339 | 422,732 | 34,425 | (355,589 | ) | 107,907 | ||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 6,365 | $ | 422,732 | $ | 34,425 | $ | (355,567 | ) | $ | 107,955 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 3,433 | $ | 406,259 | $ | 31,659 | $ | (390,139 | ) | $ | 51,212 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges (a)
|
- | 4,038 | 100 | (899 | ) | 3,239 | ||||||||||||||
Total Risk Management Liabilities
|
$ | 3,433 | $ | 410,297 | $ | 31,759 | $ | (391,038 | ) | $ | 54,451 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
PSO
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 135 | $ | 9,492 | $ | - | $ | (8,601 | ) | $ | 1,026 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 89 | - | - | 89 | |||||||||||||||
Total Risk Management Assets
|
$ | 135 | $ | 9,581 | $ | - | $ | (8,601 | ) | $ | 1,115 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 76 | $ | 15,953 | $ | - | $ | (8,560 | ) | $ | 7,469 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
PSO
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 97 | $ | 7,797 | $ | - | $ | (7,015 | ) | $ | 879 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 53 | $ | 9,542 | $ | - | $ | (7,092 | ) | $ | 2,503 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 107 | - | - | 107 | |||||||||||||||
Total Risk Management Liabilities
|
$ | 53 | $ | 9,649 | $ | - | $ | (7,092 | ) | $ | 2,610 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
SWEPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Cash and Cash Equivalents (c)
|
$ | 17,356 | $ | - | $ | - | $ | 676 | $ | 18,032 | ||||||||||
|
||||||||||||||||||||
Risk Management Assets
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
170 | 15,682 | - | (14,323 | ) | 1,529 | ||||||||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 86 | - | - | 86 | |||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 5 | - | - | 5 | |||||||||||||||
Total Risk Management Assets
|
170 | 15,773 | - | (14,323 | ) | 1,620 | ||||||||||||||
|
||||||||||||||||||||
Total Assets
|
$ | 17,526 | $ | 15,773 | $ | - | $ | (13,647 | ) | $ | 19,652 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 96 | $ | 25,217 | $ | - | $ | (14,271 | ) | $ | 11,042 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
SWEPCo
|
|
|
|
|
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Risk Management Assets
|
|
|
|
|
|
|||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 122 | $ | 7,023 | $ | - | $ | (6,421 | ) | $ | 724 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 3 | - | - | 3 | |||||||||||||||
Total Risk Management Assets
|
$ | 122 | $ | 7,026 | $ | - | $ | (6,421 | ) | $ | 727 | |||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
|
||||||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||||||
Risk Management Commodity Contracts (a) (f)
|
$ | 66 | $ | 11,753 | $ | - | $ | (6,479 | ) | $ | 5,340 | |||||||||
Cash Flow Hedges:
|
||||||||||||||||||||
Commodity Hedges
|
- | 97 | - | - | 97 | |||||||||||||||
Interest Rate/Foreign Currency Hedges
|
- | 19,143 | - | - | 19,143 | |||||||||||||||
Total Risk Management Liabilities
|
$ | 66 | $ | 30,993 | $ | - | $ | (6,479 | ) | $ | 24,580 |
(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, I&M and OPCo and coal contracts for PSO and SWEPCo.
|
Three Months Ended March 31, 2012
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||||
Balance as of December 31, 2011
|
|
$
|
1,971
|
|
$
|
1,263
|
|
$
|
2,666
|
|
$
|
-
|
|
$
|
-
|
|||||||||||||||||||
Realized Gain (Loss) Included in Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
(or Changes in Net Assets) (a) (b)
|
|
|
(3,580)
|
|
|
(2,411)
|
|
|
(5,056)
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Unrealized Gain (Loss) Included in Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Income (or Changes in Net Assets) Relating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
to Assets Still Held at the Reporting Date (a)
|
|
|
-
|
|
|
-
|
|
|
6,509
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Realized and Unrealized Gains (Losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Included in Other Comprehensive Income
|
|
|
49
|
|
|
31
|
|
|
66
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Purchases, Issuances and Settlements (c)
|
|
|
5,948
|
|
|
4,043
|
|
|
8,477
|
|
|
-
|
|
|
-
|
|||||||||||||||||||
Transfers into Level 3 (d) (f)
|
|
|
2,508
|
|
|
1,764
|
|
|
3,699
|
|
|
-
|
|
|
-
|
|||||||||||||||||||
Transfers out of Level 3 (e) (f)
|
|
|
(4,001)
|
|
|
(2,814)
|
|
|
(5,900)
|
|
|
-
|
|
|
-
|
|||||||||||||||||||
Changes in Fair Value Allocated to Regulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Jurisdictions (g)
|
|
|
5,086
|
|
|
3,738
|
|
|
1,306
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Balance as of March 31, 2012
|
|
$
|
7,981
|
|
$
|
5,614
|
|
$
|
11,767
|
|
$
|
-
|
|
$
|
-
|
Three Months Ended March 31, 2011
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||||
Balance as of December 31, 2010
|
|
$
|
5,131
|
|
$
|
3,108
|
|
$
|
6,583
|
|
$
|
1
|
|
$
|
2
|
|||||||||||||||||||
Realized Gain (Loss) Included in Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
(or Changes in Net Assets) (a) (b)
|
|
|
(586)
|
|
|
(344)
|
|
|
(736)
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Unrealized Gain (Loss) Included in Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Income (or Changes in Net Assets) Relating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
to Assets Still Held at the Reporting Date (a)
|
|
|
-
|
|
|
-
|
|
|
4,683
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Realized and Unrealized Gains (Losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Included in Other Comprehensive Income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
||||||||||||||||||
Purchases, Issuances and Settlements (c)
|
|
|
(1,333)
|
|
|
(783)
|
|
|
(1,679)
|
|
|
-
|
|
|
-
|
|||||||||||||||||||
Transfers into Level 3 (d) (f)
|
|
|
95
|
|
|
57
|
|
|
122
|
|
|
-
|
|
|
-
|
|||||||||||||||||||
Transfers out of Level 3 (e) (f)
|
|
|
(2,654)
|
|
|
(1,596)
|
|
|
(3,399)
|
|
|
-
|
|
|
-
|
|||||||||||||||||||
Changes in Fair Value Allocated to Regulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Jurisdictions (g)
|
|
|
4,819
|
|
|
2,767
|
|
|
1,319
|
|
|
(1)
|
|
|
(2)
|
||||||||||||||||||
Balance as of March 31, 2011
|
|
$
|
5,472
|
|
$
|
3,209
|
|
$
|
6,893
|
|
$
|
-
|
|
$
|
-
|
(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.
|
|
OPCo
|
|||
|
(in thousands)
|
|||
Balance at December 31, 2011
|
$ | 43,565 | ||
Increase - Tax Positions Taken During a Prior Period
|
- | |||
Decrease - Tax Positions Taken During a Prior Period
|
(23,813 | ) | ||
Increase - Tax Positions Taken During the Current Year
|
- | |||
Decrease - Tax Positions Taken During the Current Year
|
- | |||
Decrease - Settlements with Taxing Authorities
|
(4,742 | ) | ||
Decrease - Lapse of the Applicable Statute of Limitations
|
- | |||
Balance at March 31, 2012
|
$ | 15,010 |
|
|
|
|
Principal
|
|
Interest
|
|
|
|
Company
|
|
Type of Debt
|
|
Amount
|
|
Rate
|
|
Due Date
|
|
Issuances:
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
|
PSO
|
|
Notes Payable
|
|
$
|
1,944
|
|
3.00
|
|
2027
|
SWEPCo
|
|
Senior Unsecured Notes
|
|
|
275,000
|
|
3.55
|
|
2022
|
SWEPCo
|
|
Notes Payable
|
|
|
65,000
|
|
4.58
|
|
2032
|
|
|
|
|
|
Principal
|
|
Interest
|
|
|
|
Company
|
|
Type of Debt
|
|
Amount Paid
|
|
Rate
|
|
Due Date
|
||
Retirements and
|
|
|
|
(in thousands)
|
|
(%)
|
|
|
||
|
Principal Payments:
|
|
|
|
|
|
|
|
|
|
APCo
|
|
Pollution Control Bonds
|
|
$
|
30,000
|
|
6.05
|
|
2024
|
|
APCo
|
|
Pollution Control Bonds
|
|
|
19,500
|
|
5.00
|
|
2021
|
|
APCo
|
|
Land Note
|
|
|
6
|
|
13.718
|
|
2026
|
|
I&M
|
|
Notes Payable
|
|
|
6,147
|
|
Variable
|
|
2016
|
|
I&M
|
|
Notes Payable
|
|
|
4,257
|
|
2.12
|
|
2016
|
|
I&M
|
|
Notes Payable
|
|
|
5,548
|
|
Variable
|
|
2015
|
|
I&M
|
|
Other Long-term Debt
|
|
|
122
|
|
6.00
|
|
2025
|
|
OPCo
|
|
Senior Unsecured Notes
|
|
|
150,000
|
|
Variable
|
|
2012
|
|
SWEPCo
|
|
Notes Payable
|
|
|
20,000
|
|
7.03
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
||||||||||||||||||||||
|
|
|
Maximum
|
|
Maximum
|
|
Average
|
|
Average
|
|
(Borrowings)
|
|
Authorized
|
|||||||||||||||||||||||||||
|
|
|
Borrowings
|
|
Loans
|
|
Borrowings
|
|
Loans
|
|
to/from 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, 2012
|
|
Limit
|
|||||||||||||||||||||||||||
|
|
|
(in thousands)
|
|||||||||||||||||||||||||||||||||||||
|
APCo
|
|
$
|
275,241
|
|
$
|
22,614
|
|
$
|
176,597
|
|
$
|
22,377
|
|
$
|
(161,634)
|
|
$
|
600,000
|
|||||||||||||||||||||
|
I&M
|
|
|
-
|
|
|
193,190
|
|
|
-
|
|
|
139,106
|
|
|
143,962
|
|
|
500,000
|
|||||||||||||||||||||
|
OPCo
|
|
|
30,625
|
|
|
290,356
|
|
|
30,625
|
|
|
175,174
|
|
|
89,840
|
|
|
600,000
|
|||||||||||||||||||||
|
PSO
|
|
|
-
|
|
|
76,743
|
|
|
-
|
|
|
49,485
|
|
|
29,136
|
|
|
300,000
|
|||||||||||||||||||||
|
SWEPCo
|
|
|
227,087
|
|
|
65,837
|
|
|
179,934
|
|
|
38,120
|
|
|
27,651
|
|
|
350,000
|
|
|
Three Months Ended March 31,
|
||||
|
|
2012
|
|
2011
|
||
Maximum Interest Rate
|
|
0.56
|
%
|
|
0.56
|
%
|
Minimum Interest Rate
|
|
0.45
|
%
|
|
0.06
|
%
|
|
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
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
|
|
|
|
||||||||||||
APCo
|
0.51 | % | 0.38 | % | 0.51 | % | 0.17 | % | ||||||||
I&M
|
- | % | 0.48 | % | 0.51 | % | 0.25 | % | ||||||||
OPCo
|
0.47 | % | 0.45 | % | 0.52 | % | 0.26 | % | ||||||||
PSO
|
- | % | 0.47 | % | 0.51 | % | 0.19 | % | ||||||||
SWEPCo
|
0.53 | % | 0.36 | % | 0.51 | % | 0.32 | % |
Short-term Debt
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
The Registrant Subsidiaries’ outstanding short-term debt was as follows:
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
March 31, 2012
|
December 31, 2011
|
|||||||||||
|
|
|
|
Outstanding
|
Interest
|
Outstanding
|
Interest
|
|||||||||
|
Company |
|
Type of Debt
|
Amount
|
Rate (a)
|
Amount
|
Rate (a)
|
|||||||||
|
|
|
|
(in thousands)
|
|
|
(in thousands)
|
|
|
|||||||
SWEPCo |
Line of Credit – Sabine
|
$
|
-
|
-
|
%
|
$
|
17,016
|
1.79
|
%
|
|
(a)
|
Weighted average rate.
|
|
March 31,
|
December 31,
|
|||||||
Company
|
2012
|
2011
|
|||||||
|
(in thousands)
|
||||||||
APCo
|
$ | 131,909 | $ | 121,605 | |||||
I&M
|
122,370 | 121,597 | |||||||
OPCo
|
361,495 | 346,695 | |||||||
PSO
|
102,258 | 123,172 | |||||||
SWEPCo
|
114,510 | 140,440 |
|
Three Months Ended March 31,
|
||||||||
Company
|
2012
|
2011
|
|||||||
|
(in thousands)
|
||||||||
APCo
|
$ | 2,130 | $ | 2,575 | |||||
I&M
|
1,543 | 1,627 | |||||||
OPCo
|
5,916 | 4,035 | |||||||
PSO
|
1,732 | 1,234 | |||||||
SWEPCo
|
1,386 | 1,100 |
|
Three Months Ended March 31,
|
||||||||
Company
|
2012
|
2011
|
|||||||
|
(in thousands)
|
||||||||
APCo
|
$ | 346,526 | $ | 366,209 | |||||
I&M
|
339,581 | 351,021 | |||||||
OPCo
|
837,897 | 911,038 | |||||||
PSO
|
272,795 | 268,569 | |||||||
SWEPCo
|
321,608 | 314,124 |
|
2012 to 2020
|
||||||||
|
Estimated Environmental Investment
|
||||||||
Company
|
Low
|
High
|
|||||||
|
(in millions)
|
||||||||
APCo
|
$ | 415 | $ | 515 | |||||
I&M
|
1,490 | 1,710 | |||||||
OPCo
|
1,260 | 1,510 | |||||||
PSO
|
430 | 530 | |||||||
SWEPCo
|
1,250 | 1,450 |
|
|
|
|
Generating
|
|
Company
|
|
Plant Name and Unit
|
|
Capacity
|
|
|
|
|
|
(in MWs)
|
|
APCo
|
|
Clinch River Plant, Unit 3
|
|
|
235
|
APCo
|
|
Glen Lyn Plant
|
|
|
335
|
APCo
|
|
Kanawha River Plant
|
|
|
400
|
APCo/OPCo
|
|
Philip Sporn Plant, Units 1-4
|
|
|
600
|
I&M
|
|
Tanners Creek Plant, Units 1-3
|
|
|
495
|
OPCo
|
|
Conesville Plant, Unit 3
|
|
|
165
|
OPCo
|
|
Kammer Plant
|
|
|
630
|
OPCo
|
|
Muskingum River Plant, Units 1-4
|
|
|
840
|
OPCo
|
|
Picway Plant
|
|
|
100
|
SWEPCo
|
|
Welsh Plant, Unit 2
|
|
|
528
|