0000004904-95-000109.txt : 19950914 0000004904-95-000109.hdr.sgml : 19950914 ACCESSION NUMBER: 0000004904-95-000109 CONFORMED SUBMISSION TYPE: U-1 PUBLIC DOCUMENT COUNT: 12 FILED AS OF DATE: 19950911 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN ELECTRIC POWER COMPANY INC CENTRAL INDEX KEY: 0000004904 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 134922640 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-1 SEC ACT: 1935 Act SEC FILE NUMBER: 070-08693 FILM NUMBER: 95572719 BUSINESS ADDRESS: STREET 1: 1 RIVERSIDE PLZ CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 6142231000 FORMER COMPANY: FORMER CONFORMED NAME: KINGSPORT UTILITIES INC DATE OF NAME CHANGE: 19660906 U-1 1 AEP & COS - SHORT TERM DEBT File No. 70- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM U-1 APPLICATION OR DECLARATION under THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 *** AMERICAN ELECTRIC POWER COMPANY, INC. 1 Riverside Plaza, Columbus, Ohio 43215 AEP GENERATING COMPANY 1 Riverside Plaza, Columbus, Ohio 43215 APPALACHIAN POWER COMPANY 40 Franklin Road, S.W., Roanoke, Virginia 24011 COLUMBUS SOUTHERN POWER COMPANY 215 North Front Street, Columbus, Ohio 43215 INDIANA MICHIGAN POWER COMPANY One Summit Square, P. O. Box 60, Fort Wayne, Indiana 46801 KENTUCKY POWER COMPANY 1701 Central Avenue, Ashland, Kentucky 41101 KINGSPORT POWER COMPANY 40 Franklin Road, S. W. Roanoke, Virginia 24011 OHIO POWER COMPANY 301 Cleveland Avenue, S. W., Canton, Ohio 44701 WHEELING POWER COMPANY 51 Sixteenth St., Wheeling, West Virginia 26003 (Name of company or companies filing this state- ment and addresses of principal executive offices) *** AMERICAN ELECTRIC POWER COMPANY, INC. 1 Riverside Plaza, Columbus, Ohio 43215 (Name of top registered holding company parent of each applicant or declarant) *** G. P. Maloney, Executive Vice President AMERICAN ELECTRIC POWER SERVICE CORPORATION 1 Riverside Plaza, Columbus, Ohio 43215 John F. DiLorenzo, Jr., Associate General Counsel AMERICAN ELECTRIC POWER SERVICE CORPORATION 1 Riverside Plaza, Columbus, Ohio 43215 (Names and addresses of agents for service) ITEM 1. DESCRIPTION OF PROPOSED TRANSACTIONS American Electric Power Company, Inc. ("American"), Appala- chian Power Company ("Appalachian"), Columbus Southern Power Company ("Columbus"), Indiana Michigan Power Company ("Indiana"), Kentucky Power Company ("Kentucky") and Ohio Power Company ("Ohio") request authorization to incur short-term indebtedness, from time to time during the period subsequent to December 31, 1995 and prior to January 1, 2001, through the issuance and sale of notes to banks and commercial paper to dealers in commercial paper and AEP Generating Company ("Generating"), Kingsport Power Company ("Kingsport"), and Wheeling Power Company ("Wheeling") request authorization to incur short-term indebtedness during such period through the issuance and sale of notes to banks, as funds may be required, in an aggregate amount not to exceed the amounts outstanding at any one time as follows: Company Amount American $150,000,000 Appalachian 250,000,000 Columbus 175,000,000 Indiana 175,000,000 Kentucky 150,000,000 Generating 100,000,000 Kingsport 30,000,000 Ohio 250,000,000 Wheeling 30,000,000 The $150,000,000 authorization requested by American for short-term indebtedness is in addition to the authority granted to American in Release No. 35-36200 in File No. 70-8429 (December 22, 1994). Appalachian, Indiana and Ohio have provisions in their charters which require a vote of the shareholders to issue any short-term unsecured debt securities if immediately after such issue the total principal amount of all short-term unsecured debt securities issued and then outstanding would exceed 10% of the capitalization of the corporation. Appalachian, Indiana and Ohio will at no time issue short-term unsecured debt securities in excess of this 10% charter limitation even if the amount of short-term indebtedness authorized in this transaction exceeds such 10% charter limitation. A. Notes to Banks and Commercial Paper It is proposed that such notes and commercial paper will be issued from time to time and be renewed from time to time prior to January 1, 2001, as funds may be required, provided that no such notes or commercial paper shall mature later than June 30, 2001. American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling request authorization for an increase in the exemption provided from the provisions of Section 6(a) by the first sentence of Section 6(b) of the Public Utility Holding Company Act of 1935 (the "Act"), to the extent necessary to cover such issuance and sale of notes to banks and commercial paper under the conditions described herein. American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling propose to issue and sell such short-term notes during calendar years 1996, 1997, 1998, 1999 and 2000 to several domestic and non-domestic banks through various "Credit Arrangements", including revolving credit agree- ments or shared lines of credit. The shared lines of credit with such banks are generally available to American, Appalachian, Columbus, Indiana, Kentucky and Ohio, and are partially available -2- to Generating, Kingsport, and Wheeling. It is anticipated that, if this Application or Declaration relating to short-term bank borrowings through December 31, 2000 is granted as requested, American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling will, at January 1, 1996, be autho- rized or otherwise permitted under Section 6(b), as the case may be, to borrow, in the aggregate, amounts not to exceed $1,310,000,000 at any one time. Notes to be issued to banks pursuant to the Credit Arrange- ments will mature not more than 270 days after the date of issuance or renewal thereof. Credit Arrangements with the banks generally require the payment of a commitment fee. Commitment fees for shared lines of credit or revolving credit obligations are generally borne by American and participating subsidiaries in proportion to their respective projected maximum need for such credit facilities. The total annual cost of borrowings under all such bank lines is estimated to be not greater than the effective rate for borrowings bearing interest at the prime commercial rate with compensating balances of up to 10% of the line of credit. Although existing financial conditions do not necessitate the maintenance of such compensating balances, because of the vola- tility of the financial markets in the recent past, the main- tenance of such above-described compensating balances may be required during the time period for which authorization is sought herein. The maximum effective annual interest cost under any of the above arrangements, assuming full use of the line of credit, -3- is estimated to not exceed 125% of the prime commercial rate in effect from time to time, or not more than 10.94% on the basis of a prime commercial rate of 8.75%. American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling may, from time to time, negotiate increases to existing Credit Arrangements or implemen- tation of new agreements. Any company granted authority herein will seek additional authorization from the Commission by Post- Effective Amendment of any request for an increase in the maximum amount of short-term indebtedness it proposes to incur. Commercial paper will be sold directly by American, Appalachian, Columbus, Indiana, Kentucky, or Ohio to dealers in commercial paper. The commercial paper will be in the form of promissory notes in denominations of not less than $50,000, and of varying maturities, with no maturity more than 270 days after the date of issue. Such notes will not be prepayable prior to maturity and will be sold at a discount rate not in excess of the discount rate per annum prevailing at the time of issuance for commercial paper of comparable quality and maturity. American, Appalachian, Columbus, Indiana and Ohio have designated Lehman Commercial Paper Incorporated as one of their commercial paper dealers to purchase and resell their commercial paper. Other dealers include Goldman Sachs Money Markets (Indiana and Ohio), First Chicago Capital Markets (Appalachian), Citicorp Securities Markets (Columbus), and Merrill Lynch Money Markets Inc. (Kentucky). American, Appalachian, Columbus, Indiana, Kentucky -4- and Ohio may designate different or additional commercial paper dealers to purchase and resell their commercial paper. The commercial paper dealers will reoffer the commercial paper to investors, generally at a discount rate of up to 1/8 of 1% per annum less than the discount rate at which such commercial paper notes were purchased from American, Appalachian, Columbus, Indiana, Kentucky or Ohio. It is expected that the investors of the dealers will hold the commercial paper notes to maturity. However, if any such investor wishes to resell the commercial paper prior to maturity, the dealers generally will repurchase such commercial paper sold by them and reoffer it to other investors under substantially the same terms and conditions as are herein described. American, Appalachian, Columbus, Indiana, Kentucky and Ohio believe that by having flexibility to allocate short-term bor- rowings between sales of notes to banks and sales of commercial paper to dealers, they will be able to realize economies in meeting their short-term financing requirements, and such compa- nies propose, in general, taking appropriate long and short-term considerations into account, to utilize the most economical means available at any time to meet their short-term financing require- ments. B. Letters of Credit American, Appalachian, Columbus, Indiana, Kentucky, Ohio, Generating, Kingsport and Wheeling also request authorization to issue unsecured promissory notes or other evidence of their reimbursement obligations in respect of letters of credit issued -5- on their behalf by certain banks. Letters of credit, together with other short-term indebtedness authorized, would be in an aggregate amount not to exceed the aggregate amounts authorized for each company for short-term indebtedness for notes issued to banks as set forth in the first paragraph of this ITEM 1. Drawings under the letters of credit would bear interest at not more than 125% of the prime commercial rate in effect from time to time. An annual fee may be required for the issuance of such letters of credit. Such fee will not exceed 1% of the face amount of such letter of credit. Any such promissory note or other evidence of reimbursement obligations would have a stated maturity date no later than 270 days after the date of a draw on the related letter of credit. C. Application of Proceeds The proceeds of the short-term debt incurred by each of American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling will be added to the general funds of such companies and used to pay the general obligations of such companies, including expenditures incurred in their various construction projects, and for other corporate purposes. Unless the Commission orders to the contrary, the notes payable to banks and commercial paper for which authorization is requested herein will not necessarily be retired with the pro- ceeds of any permanent financing which may be authorized by the Commission. Unless otherwise authorized by the Commission, any short-term debt outstanding after December 31, 2000 will be retired at or prior to June 30, 2001 from internal cash resources -6- or with the proceeds of such debt or equity financing or cash capital contributions. American desires to consummate the transactions covered by this Application or Declaration because they are an integral part in the financing of the American Electric Power System. It has been the policy of the American Electric Power System to finance the needs of the public utility operating subsidiaries for funds additional to those generated internally by means of: (a) the use of short-term indebtedness of the subsidiaries which is repaid from the proceeds of long-term financing; (b) the issuance and sale to the public or institutional investors of operating company senior securities; and (c) additional investments in the form of capital contributions, from time to time as required, in the public utility subsidiaries by American. D. Certificates of Notification It is proposed that Certificates of Notification under Rule 24 shall be filed quarterly, with respect to the issuance by American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling of notes to banks and, where autho- rized, commercial paper. Each such certificate will include the following information with respect to the issuance of notes and commercial paper: (a) the principal amount of each note (notes to banks or commercial paper) issued; (b) the stated effective interest cost of each note issued and the prime rate or range of generally prevailing prime rates. -7- E. Compliance with Rule 54 AEP Resources International, Limited ("AEPRI"), an indirect subsidiary of American, is an exempt wholesale generator ("EWG"), as defined in Section 32 of the Act. American, through its sub- sidiary, AEP Resources, Inc., invested $115,000 in AEPRI. This investment represents less than 1% of $1,342,051,000, the average of the consolidated retained earnings of American reported on Form 10-K or Form 10-Q, as applicable, for the four consecutive quarters ended June 30, 1995. AEPRI will maintain books and records and make available the books and records required by Rule 53(a)(2). No more than 2% of the employees of the operating subsidiaries of American will, at any one time, directly or indirectly, render services to AEPRI. American has submitted and will continue to submit a copy of Item 9 and Exhibits G and H of American's Form U5S to each of the public service commissions having jurisdiction over the retail rates of American's operating utility subsidiaries. In addition, (i) neither American nor any subsidiary of American is the subject of any pending bankruptcy or similar proceedings; (ii) American's average consolidated retained earnings for the four most recent quarterly periods ($1,342,051,000) represented an increase of approximately $61,968,000 (or 4.8%) in the average consolidated retained earn- ings from the previous four quarterly periods ($1,280,083,000); and (iii) for the year ended December 31, 1994, there were no losses attributable to American's direct or indirect investments in AEPRI other than $4,000 in start-up costs. -8- ITEM 2. FEES, COMMISSIONS AND EXPENSES No fees, commissions or other expenses are to be paid or incurred, directly or indirectly, by American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio or Wheeling or any associated company in connection with the pro- posed transactions, other than this Commission's filing fee of $2,000 and fees and expenses to be billed at cost by the American Electric Power Service Corporation and not to exceed $2,000 in the aggregate. ITEM 3. APPLICABLE STATUTORY PROVISIONS American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling designate Sections 6(a) and 6(b) of the Act as applicable to the issuance and sale of notes to banks and commercial paper to dealers. The basis of the exemption from Section 6(a) of the issuance and sale of the above securities under Section 6(b) is set forth in Item 1. ITEM 4. REGULATORY APPROVALS No commission other than the Securities and Exchange Commission has jurisdiction over the transactions for which authority is requested herein. ITEM 5. PROCEDURE It is requested, pursuant to Rule 23(c) of the Rules and Regulations of the Commission, that the Commission's Order granting this Application or Declaration on Form U-1 be issued on or before November 1, 1995. American, Appalachian, Columbus, -9- Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling waive any recommended decision by a hearing officer or by any other responsible officer of the Commission and waive the 30-day waiting period between the issuance of the Commission's Order and the date it is to become effective, since it is desired that the Commission's Order, when issued, become effective forthwith. American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling consent to the Office of Public Utility Regulation assisting in the preparation of the Commis- sion's decision and/or Order in this matter, unless the Office of Public Utility Regulation opposes the matters covered by this Application or Declaration on Form U-1. ITEM 6. EXHIBITS AND FINANCIAL STATEMENTS The following exhibits, financial statements, and Source of Funds Statements are filed as part of this statement: (a) Exhibits: Exhibit A-1 Proposed form of Line of Credit Agreement Exhibit A-2 Proposed form of Revolving Credit Agreement Exhibit B None Exhibit C None Exhibit D None Exhibit E None Exhibit F Opinion of Counsel Exhibit G Form of Notice -10- (b) Financial Statements: 1. Balance Sheets as of June 30, 1995, and Statements of Income and Retained Earnings for the 12 months ended June 30, 1995, of American and its subsidiaries consolidated and of Generating, Appalachian, Columbus, Indiana, Kentucky, Kingsport, Ohio and Wheeling. 2. Funds Flow Statements for American, Appalachian, Columbus, Generating, Indiana, Kentucky, Kingsport, Ohio and Wheeling for the years 1996, 1997, 1998, 1999 and 2000. ITEM 7. INFORMATION AS TO ENVIRONMENTAL EFFECTS It is believed that the granting of this Application or Declaration will not constitute a major Federal action signifi- cantly affecting the quality of the human environment. No other Federal agency has prepared or is preparing an environmental impact statement with respect to the proposed transactions. SIGNATURES Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned have duly caused this statement to be signed on their behalf by the undersigned there- unto duly authorized. AMERICAN ELECTRIC POWER COMPANY, INC. AEP GENERATING COMPANY APPALACHIAN POWER COMPANY COLUMBUS SOUTHERN POWER COMPANY INDIANA MICHIGAN POWER COMPANY KENTUCKY POWER COMPANY KINGSPORT POWER COMPANY OHIO POWER COMPANY WHEELING POWER COMPANY By: /s/ G. P. Maloney Vice President Dated: September 6, 1995 [95FN0014.AEP] -11- EXHIBIT A-1 LINE OF CREDIT AGREEMENT AGREEMENT between , (the "Bank") and the following Companies (hereinafter referred to individually as the "Borrower"): Borrower: American Electric Power Company, Inc. AEP Generating Company ($10 Million sub-limit) Appalachian Power Company Columbus Southern Power Company Indiana Michigan Power Company Kentucky Power Company Ohio Power Company Kingsport Power Company ($5 Million sub-limit) Wheeling Power Company ($5 Million sub-limit) Line of Credit: The Bank confirms approval of a $ unsecured, committed line of credit, available on a shared basis to be used for short- term working capital purposes of the Borrower during calendar year 19 . This line of credit shall be in effect from , 19 through December 31, 19 . The aggregate of individual loans made by the Bank to the Borrower will not at any time exceed $ unless the Bank and the Borrower agree otherwise. Commitment Fee: In consideration for the line of credit, the Borrower agrees to pay an annual commitment fee to the Bank equal to of 1% on the total amount of the committed line. Such fee is payable quarterly in arrears on the last business day of March, June, September and December, based on a year consisting of 360 days for the actual number of days elapsed. Liability of Borrower: All obligations of each individual Borrower under this Agreement are several and not joint except as to payment of the obligation of any commitment fee, which obligation shall be joint. Promissory Notes: Borrowings under this committed line of credit will be made at the option of the Borrower on a fixed or a floating rate basis. Fixed rate loans shall be evidenced by a note substantially in the form of Appendix A attached hereto (a "Fixed Rate Note") and floating rate loans shall be evidenced by a note substantially in the form of Appendix B attached hereto (a "Floating Rate Note"). Notes will mature not more than 270 days after the date of issuance thereof; but in no event will Notes issued under this Agreement mature later than June 30, 19 . Interest: The interest rate on any loan will either be at the Bank's rate, defined as a fluctuating interest rate per annum as shall be in effect from time to time which rate shall be at all times equal to the higher of: (a) the rate of interest announced publicly by the Bank from time to time as its rate; and (b) 1/2 of 1% per annum above the Federal Funds Rate from time to time (the "floating rate"), or at a fixed rate agreed to by the Borrower and the Bank. "Federal Funds rate" means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a business day, for the next preceding business day) by the Federal Reserve Bank of New York. Interest on all notes will be payable quarterly in arrears on the last day of March, June, September and December, and at maturity, computed on the basis of actual number of days elapsed and a 365/366 day year for all Floating Rate Notes and a 360 day year for all Fixed Rate Notes. Floating Rate Notes are partially or fully prepayable, at the option of the Borrower, upon three business days' notice to Bank. Fixed Rate Notes are not prepayable. Any principal not paid when due shall bear interest at the Bank's rate, plus 1%, until payment in full. Payment on Non-Business Days: Whenever any payment to be made hereunder or under any Note shall be stated to be due on a day which is not a business day, such payment may be made on the next succeeding business day, and such extension of time shall in such case be included in the computation of payment of interest. Conditions of Lending: The obligation of the Bank to make loans to the Borrower under this Agreement is subject to the condition precedent that the Bank shall have received a promissory note executed by the Borrower, dated the date of the loan, substantially in the form of Appendix A or B, and payable to the order of the Bank. The execution and delivery of any Note executed by the Borrower pursuant to this Agreement will constitute certification that: (1) the representations and warranties made in this Agreement are correct on and as of the date of any Note executed hereunder as though made on and as of that date; and (2) no event has occurred and is continuing, or will result from the loans to be made by the Bank pursuant to this Agreement as of the date of execution of any Note hereunder, which constitutes an Event of Default under this Agreement, or with notice or lapse of time or both, would constitute an Event of Default; and (3) all requisite consents and approvals of regulatory authorities to the entering into of this Agreement and to the issuance and performance of any Note issued hereunder have been obtained and remain in effect as of the date of the Note. Representations and Warranties of the Borrower: The Borrower represents and warrants that: (1) the Borrower is a corporation duly organized, existing and in good standing under the laws of jurisdiction of its incorporation and has all requi- site corporate power to conduct its business, to own its proper- ties and to execute and deliver, and to perform all of its obligations under, this Agreement and any loans made thereunder; (2) the execution, delivery and performance by the Borrower of this Agreement and the notes evidencing all loans made hereunder have been duly authorized by all necessary corporate action; (3) all consents, approvals, authorizations, orders or other action of any governmental body, bureau or agency required in connection with the execution, delivery and performance by the Company of this Agreement and any Note hereunder have been obtained and are in full force and effect; (4) the financial statements of the Borrower as of 19 , and for the period then ended, copies of which have been delivered to the Bank, fairly represent the financial condition of the Borrower at such date and the results of its operations for such period; such financial statements have been prepared in accordance with generally accepted accounting principles consistently applied throughout the period involved; and there has been no material adverse change in the business or assets or in the condition, financial or otherwise, of the Borrower since , 19 ; (5) this Agreement constitutes, and any notes executed and delivered hereunder, will constitute, legal, valid and binding obligations of the Borrower enforceable in accordance with their respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights in general, and except as the remedy of specific performance is subject to general principles of equity (regardless of whether such remedy is sought in a proceeding in equity or at law); and (6) there is no pending or threatened action or proceeding affecting the Borrower, except as otherwise disclosed in the financial statements and in the Borrower's report on Form 10-K for the year ended December 31, 19 and reports on Form 10-Q for the quarters ended , 19 and , 19 , before any court, governmental agency or arbitrator, the outcome of which may materially adversely affect the financial condition or operations of the Borrower. Covenants: The Borrower covenants and agrees that during the term of this Agreement, and so long as any notes hereunder remain outstanding and unpaid, the Borrower will, unless the Bank shall otherwise consent in writing: (1) furnish to the Bank: (a) as soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, a copy of the annual report for each such year, containing financial statements for such year certified in a manner acceptable to the Bank by Deloitte & Touche or another independent public accountant of recognized standing; (b) promptly after the sending or filing thereof, copies of each Form 10-K and 10-Q which the Borrower files with the Securities and Exchange Commission or any successor governmental authority; and (c) such other information respecting the condition or operations, financial or otherwise, of the Borrower as the Bank may from time to time reasonably request in writing; and (2) promptly give notice to the Bank of the occurrence of each Event of Default as hereinafter defined and each event which, with notice or lapse of time or both, would constitute an Event of Default. Increased Capital: If the Bank determines (1) that compliance with any law or regulation or any guideline or request from any central bank or other governmental authority (whether or not having the force of law) affects or would affect the amount of capital required or expected to be maintained by the Bank or any corporation controlling the Bank or would have the effect of reducing the rate of return on the Bank's capital or on the capital of such corporation and (2) that the amount of such capital is increased by or based upon, or such reduction is a consequence of the existence of, the Bank's commitment to lend hereunder, then the Borrower shall, within ten days following demand therefor by the Bank, from time to time as specified by the Bank pay to the Bank additional amounts sufficient to compensate the Bank in the light of such circumstances, to the extent that the Bank reasonably determines such increase in capital or reduction in rate of return, as the case may be, to be allocable to the existence of the Bank's commitment to lend hereunder. A certificate as to such amounts, submitted to the Borrower by the Bank, accompanied by an explanation of the basis therefor, shall constitute such demand and shall be conclusive and binding for all purposes, absent manifest error. In the event that the Borrower receives a notice that the Bank is entitled to a payment pursuant to this section, the Borrower shall have the right, upon three business days' notice, to terminate in whole or reduce in part the unused commitment of the Bank and to repay in whole or in part any outstanding Note in the form of Appendix B hereto held by such Bank. Events of Default: If any of the following events shall happen and be continuing: (1) the Borrower shall fail to pay at maturity any part of the principal of any note issued hereunder, or shall fail to pay any interest on any note issued hereunder or any commitment fee hereunder; or (2) the Borrower shall fail to pay the principal of or interest on any obligation of the Borrower for borrowed money (other than under this Agreement and any Note hereunder) when due, whether by acceleration, by required prepayment or otherwise, for such a period longer than any period of grace provided in such obligation, or fail to perform any other term, condition or covenants contained in any such obligation, the effect of which is to cause, or to permit the holder of such obligation or others on its behalf to cause, such obligation then to become due prior to its stated maturity, unless such failure shall have been cured or effectively waived; or (3) any representation or warranty made by the Borrower in this Agreement or in any financial report or other statement furnished by the Borrower to the Bank shall be untrue in any material respect at the date as of which the same shall be made or furnished; or (4) the Borrower shall fail to perform or observe any covenant herein contained and any such failure shall remain unremedied for a period of ten days after written notice thereof shall have been given by the Bank to the Borrower; or (5) the Borrower shall file a voluntary petition or an answer seeking liquidation, reorganization or any other relief under Title 11 of the United States Code or under any other insolvency act or law, state or federal, now or hereafter existing; or consent to the approval or the granting of an involuntary petition so filed; or apply for, or consent to the appointment of, a custodian, liquidator, receiver or trustee for the Borrower or for all or a substantial part of its property; or make an assignment for the benefit of creditors; or admit in writing its inability to pay debts as they mature; then, if an event specified in clause (5) above shall have occurred, the obligations of the Bank to make loans hereunder shall automatically terminate and the unpaid principal amount of the notes, and all interest accrued and unpaid thereon, and all accrued commitment fees shall immediately become due and payable without any election or action on the part of the Bank, and, if any other default occurs, the Bank may by written notice to the Borrower take either or both of the following actions: (i) declare the entire unpaid principal amount of the notes, and all interest accrued and unpaid thereon, and all accrued and unpaid commitment fees to be forthwith due and payable, whereupon such notes and all interest accrued thereon and all accrued commitment fees shall, without presentation, demand, protest or further action of any kind, all of which are hereby expressly waived, be immediately due and payable; and the Bank shall immediately and without the expiration of any period of grace be entitled to enforce payment of principal on such notes and all accrued interest thereon, and to exercise any or all of the rights set forth herein or in such note or granted by law; or (ii) declare its commitment under this Agreement to be terminated, whereupon such commitment shall terminate immediately. Participations: The Bank may sell participations to one or more banks or other entities in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment, the Loan made by it and the Fixed Rate Note or Floating Rate Note held by it); provided, however, that (i) the Bank's obligations under this Agreement (including, without limitation, its Commitment) shall remain unchanged, (ii) the Bank shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the Bank shall remain the Holder of any such Fixed Rate Note or Floating Rate Note for all purposes of this Agreement, (iv) the Borrower shall continue to deal solely and directly with the Bank in connection with its rights and obligations under this Agreement and the Fixed Rate Note and Floating Rate Note held by it and (v) any participating bank or other entity shall be entitled to the benefit of Increased Capital protection only if the Bank from which such participating bank or other entity acquired its participation would be entitled to the benefit of such protection provision; provided that in no event shall any amount payable by the Borrower exceed the amount that would have been payable by the Borrower if the Bank had not sold any participation. In no event shall the Bank that sells a participation be obligated to the participant to take or refrain from taking any action hereunder except that the Bank may agree that it will not, without the consent of such participant, agree to (A) increase or extend the term of the Bank's Commitment, (B) reduce the principal of, or interest on, the Fixed Rate Note or Floating Rate Note held by the Bank or any fees or other amounts payable to the Bank hereunder; (C) postpone the date fixed for any payment of the principal of, or interest on the Fixed Rate Note or Floating Rate Note held by the Bank or other amounts payable to the Bank. Assignments: Neither party may assign its interests under this Agreement or any Notes issued hereunder without express written consent of the other party. Termination or Reduction of Commitment: The Borrower shall have the right, at any time and from time to time, upon three business days' notice to the Bank, to terminate in whole or reduce in part the unused commitment of the Bank. Notices: All notices, requests, demands, directions and other communication hereunder shall either be in writing (including telegraphic communication) or by telephone communication promptly confirmed in writing and transmitted to the applicable party at the following address: To: Borrower c/o G. P. Maloney Executive Vice President American Electric Power Service Corporation 1 Riverside Plaza Columbus, OH 43215 To: Bank Expenses: The Borrower agrees to pay or reimburse the Bank, upon written notice to the Borrower, for the payment of reasonable out-of- pocket expenses of the Bank, including attorney's fees, arising in connection with the enforcement or preservation of any rights under this Agreement and the notes. Counterparts: This Agreement may be executed in any number of counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Headings: The headings of the sections and subsections of this Agreement are for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. Governing Law: This Agreement shall be governed by and construed in accordance with New York law, and shall become effective on the date of receipt by the Bank of a counterpart of this Agreement duly signed by the Borrower. EXECUTED as of this ______ day of September, 1995. By: Title: American Electric Power Company, Inc. AEP Generating Company Appalachian Power Company Columbus Southern Power Company Indiana Michigan Power Company Kentucky Power Company Ohio Power Company Kingsport Power Company Wheeling Power Company By: Title: G. P. Maloney, Vice President of each of the above named companies APPENDIX A Non-Prepayable, Fixed Rate Promissory Note $ , 19 For value received, the undersigned promises to pay to the order of (the "Bank"), at its principal office in New York, the sum of ($ ) on , 19 , and to pay interest thereon from the date hereof at maturity at the fixed rate of % per annum. Any principal not paid when due shall bear interest from maturity until paid in full at a fluctuating rate per annum equal to 1% plus that rate of interest from time to time announced by the Bank at said principal office as its prime rate. All payments hereunder shall be made in lawful money of the United States and in immediately available funds. Interest shall be calculated on the basis of a year of 360 days. This Note is issued pursuant to, and is entitled to the benefits of, the Line of Credit Agreement currently in effect between the Borrower and the Bank. The events of default which may cause the acceleration of the maturity of this Note shall be as specified in the Line of Credit Agreement currently in effect between the Bank and the Borrower. Except as provided in the preceding paragraph, this Note may not be prepaid. The undersigned agrees to pay all expenses of enforcement, including collection costs and reasonable attorneys' fees in case default is made in the payment of this Note or the loan evidenced hereby. This Note shall be construed according to and governed by the laws of the State of New York. By: APPENDIX B Prepayable, Floating Rate Promissory Note $ , 19 For value received, the undersigned promises to pay to the order of (the "Bank"), at its principal office in New York, the sum of ($ ) on , 19 , and to pay interest thereon from the date hereof to maturity at a floating rate per annum equal to the higher of: (a) the Federal Funds Rate plus 1/2 of 1% or (b) the prime rate (such higher rate being the "Floating Rate"). Any principal not paid when due shall bear interest from maturity until paid in full at a floating rate per annum equal to 1% plus that rate of interest from time to time announced by the Bank at said principal office as its alternate base rate. All payments hereunder shall be made in lawful money of the United States and in immediately available funds. Interest shall be calculated on the basis of a year of 365 or 366 days. This Note is issued pursuant to, and is entitled to the benefits of, the Line of Credit Agreement currently in effect between the Borrower and the Bank. The events of default which may cause the acceleration of the maturity of this Note shall be as specified in the Line of Credit Agreement currently in effect between the Bank and the Borrower. This Note may be prepaid (either partially or fully) by the undersigned by giving at least three business days' notice to the Bank. The undersigned agrees to pay all expenses of enforcement, including collection costs and reasonable attorneys' fees in case default is made in the payment of this Note or the loan evidenced hereby. This Note shall be construed according to and governed by the laws of the State of New York. By: EXHIBIT A-2 REVOLVING CREDIT AGREEMENT AGREEMENT, dated as of the _____ day of _______________, 1995, between _______________________ (the "Bank") and each of the following Companies (hereinafter referred to individually as the "Borrower"): Borrower: American Electric Power Company, Inc. Appalachian Power Company Columbus Southern Power Company Indiana Michigan Power Company Kentucky Power Company Ohio Power Company Section 1. Definitions As used herein the following terms have the following meanings (which are equally applicable to both the singular and plural forms of such terms): "Advance" means a loan made by the Bank to the Borrower pursuant to Section 2, and refers to a Base Rate Advance or a LIBO Rate Advance (each of which shall be a "Type" of Advance). "Agreement" means this Revolving Credit Agreement and any future amendments or supplements hereto. "Applicable Margin" means, as of any date, a percentage per annum determined by reference to the Public Debt Rating for each Borrower in effect on such date as set forth below: Applicable Margin for Applicable Margin Public Debt Rating for for S&P/Moody's Base Rate Advances LIBO Rate Advances Level 1 A-/A3 or above 0% .20% Level 2 BBB+/Baa1 0% .20% Level 3 BBB/Baa2 0% .25% Level 4 BBB-/Baa3 0% .30% Level 5 BB+/Ba1 or below .125% .50% "Applicable Percentage" means, as of any date, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below: Public Debt Rating Applicable S&P/Moody's Percentage Level 1 A-/A3 or above .125% Level 2 BBB+/Baa1 .15% Level 3 BBB/Baa3 .175% Level 4 BBB-/Baa3 .25% Level 5 BB+/Ba1 or below .30% "Base Rate" means a fluctuating interest rate per annum in effect from time to time, announced publicly by in New York, New York, from time to time, as its base rate. "Business Day" means a day other than a Saturday, Sunday, legal holiday, or day on which the Bank is autho- rized or required by law to close at its principal office, and, if the issuance or payment of a Note bearing interest at the LIBO Rate is involved, on which banks in the London interbank market are open for transactions in dollars. "Capitalization" of the Borrower means, as of any particular time, an amount equal to the sum of the total principal amount of all indebtedness for borrowed money, secured or unsecured, of the Borrower then outstanding (whether or not such indebtedness matures, pursuant to the instrument by which such indebtedness shall be created or incurred, within twelve months after such particular time) and the aggregate of the par value of, or stated capital represented by, the outstanding shares of all classes of stock and of the surplus of the Borrower, paid in, earned and other, if any. "Commitment" of a Bank means, as of any particular time, that Bank's obligation to make Advances to the Borrower pursuant to Section 2.1 or, in the event that the unused portion of such Commitment has been terminated or reduced pursuant to Section 2.11, the amount of such Commitment not extinguished by such termination or reduction. "Federal Funds Rate" means a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day). "LIBO Rate" means, for each LIBO Rate Advance, the average (rounded upward to the nearest 1/16 of 1% per annum) rate of interest per annum at which deposits in United States dollars are offered by the principal office of the Bank to prime banks in the London interbank market at 11:00 a.m. (London time) two Business Days prior to the date of such LIBO Rate Advance for the amount and term of such LIBO Rate Advance. "LIBO Rate Advance" means an Advance that bears interest as provided in Section 2.6. "Note" or "Notes" means the promissory note or notes of the Borrower substantially in the form of either Appendix A or Appendix A-1 hereto, with appropriate insertions. "Plan" means an employee benefit plan or other plan established or maintained by the Borrower or any subsidiary or affiliate of the Borrower and covered by Title IV of the Employee Retirement Income Security Act of 1974. "Public Debt Rating" means, as of any date, the lowest rating that has been most recently announced by either Standard & Poor's ("S&P") or Moody's Investors Service, Inc. ("Moody's"), as the case may be, for any class of long-term senior unsecured debt issued by the Borrower. For purposes of the foregoing, (a) if only one of S&P and Moody's shall have in effect a Public Debt Rating, the Applicable Margin and the Applicable Percentage shall be determined by reference to the available rating; (b) if neither S&P nor Moody's shall have in effect a Public Debt Rating, the Applicable Margin and the Applicable Percentage will be set in accordance with Level 4 under the definition of "Applicable Margin" or "Applicable Percentage," as the case may be; (c) if the ratings established by S&P and Moody's shall fall within different levels, the Applicable Margin and the Applicable Percentage shall be based upon the lower rating; (d) if any rating established by S&P or Moody's shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change; and (e) if S&P or Moody's shall change the basis on which ratings are established, each reference to the Public Debt Rating announced by S&P or Moody's, as the case may be, shall refer to the then equivalent rating by S&P or Moody's, as the case may be. "Short-Term Debt" means unsecured promissory notes of the Borrower having a maturity, when issued, of 270 days or less. Section 2. Commitment and Terms of Advances 2.1 Commitment Subject to the terms and conditions of this Agreement, the Bank agrees to lend the Borrower, from time to time from the Effective Date of this Agreement, to and including December 31, 2000, an aggregate amount up to but not exceeding at any time outstanding, $35,000,000. 2.2 Liability of Borrower All obligations of each individual Borrower under this Agreement are several and not joint. 2.3 Borrowing Procedure Whenever the Borrower desires an Advance from the Bank under the Bank's Commitment, it shall give the Bank at least 3 Business Days' notice (which notice shall be irrevocable), by 11:00 a.m. in the case of a LIBO Rate Advance or the first Business Day prior to the date of the proposed borrowing in the case of a Base Rate Advance, specifying the date of the proposed Advance, the amount to be advanced from the Bank, the Type of Advance, and the date of payment of the Advance (which date shall be not less than 30 days from the date of the Advance). Each Advance shall be in the amount of $100,000 or an integral multiple thereof. The notice given to the Bank for a LIBO Rate Advance will be irrevocable. Upon fulfillment by the Borrower of the applicable conditions specified in Section 3, the Bank will make available to the Borrower at the office of the Bank specified under its signature hereto, not later than 2:00 p.m. New York City time on the date specified for the proposed Advance, in immediately available funds the amount specified by the Borrower in its notice to the Bank. Any notice shall be by telephone, confirmed immediately in writing or by fax. 2.4 Notes Evidencing Advances Each Advance by the Bank shall be evidenced by a Note dated the date of the Advance, payable to the order of the Bank in the principal amount of the Advance on such date as shall be specified by the Borrower in its notice to the Bank pursuant to Section 2.3 and bearing interest as provided in Section 2.6. The Note shall be in the form of Appendix A hereto if the Advance is a LIBO Rate Advance or in the form of Appendix A-1 hereto if the Advance is a Base Rate Advance. Notes will mature not more than 270 days after date of issuance thereof and in no event will Notes issued under this Agreement mature later than December 31, 2001 or such later date as certified to the Bank pursuant to a certificate in the form of Exhibit B hereto. 2.5 Commitment Fee The Borrower will pay a fee to the Bank for its Commit- ment, computed at the rate per annum equal to the Applicable Percentage in effect calculated on the aggregate amount of the Bank's Commitment from the Effective Date of this Agreement to the date of expiration, reduction or termination of such Commitment. Payment of accrued commitment fees shall be made quarterly within one week after the last day of March, June, September and December in each year and on the date of expiration, reduction (for the portion so reduced) or termination of such Commitments. 2.6 Interest Each Borrower shall pay interest on the unpaid principal amount of each Note issued and outstanding hereunder from the date thereof to the date of payment in full, payable quarterly on the last day of each March, June, September and December, or at the maturity thereof (whether by acceleration or otherwise) and after such maturity on demand. Said interest on the principal amount of a Note shall be: (a) prior to maturity, and at the Borrower's option, equal to either: (i) a fluctuating rate per annum equal at all times to the Base Rate plus the Applicable Margin in effect from time to time, or (ii) a fixed rate per annum for the term of the Note which shall be one, two, three or six months (such term to be selected by the Borrower at least three Business Days prior to the date of the Note) equal to the sum of (x) the LIBO Rate for such Interest Period for such LIBO Rate Advance plus (y) the Applicable Margin in effect from time to time, payable in arrears on the last day of such Interest Period; and (b) after maturity (whether by acceleration or otherwise), at a fluctuating rate per annum equal at all times to the sum of (i) 1% plus (ii) the Base Rate until payment in full; provided, however, that in no event shall interest be paid at a rate higher than the maximum rate permitted by law. 2.7 Additional Interest The Borrower shall pay to the Bank, during the time that the Bank shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency liabilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System as in effect from time to time), additional interest on the unpaid principal amount of each Note in the form of Appendix A from the date of such Note until such principal amount is paid in full, payable on the due date of each interest payment for such Note, at an interest rate per annum equal at all times during the term of such Note to the excess of (i) the rate obtained by dividing the LIBO Rate for such Note by a percentage equal to 100% minus the reserve percentage applicable during the term of such Note under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or if more than one such percentage is so applicable, minus the daily average for such percentages for those days during which such percentage shall be so applicable) for determining the maximum reserve requirement (including, without limitation, any marginal reserve requirement) for the Bank in respect of liabilities or assets consisting of or including Eurocurrency liabilities (including those determined based on a LIBO Rate) over (ii) the LIBO Rate for such Note. 2.8 Increased Costs, etc. (a) If either (i) the introduction of or any change (including, without limitation, any change by way of imposition or increase of reserve requirements) in or in the interpretation of any law or regulation or (ii) the compliance by the Bank with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), shall result in any increase in the cost to the Bank of making, funding or maintaining Advances bearing interest at the LIBO Rate, then the Borrower shall from time to time, upon demand by the Bank, pay to the Bank additional amounts sufficient to indemnify the Bank against such increased cost. A certificate as to the amount of such increased cost, submitted by express delivery to the Borrower by the Bank, shall be conclusive absent manifest error in calculation by the Bank. (b) If it shall become unlawful for a Bank to ob- tain funds in the London interbank market in order to fund or maintain LIBO Rate Advances or otherwise to perform their obligations hereunder with respect to any such LIBO Rate Advances, then, upon at least five Business Days' notice, in accordance with Section 7.5 of this Agreement, by the Bank to the Borrower the rate of interest on all LIBO Rate Advances shall thereupon be the Base Rate, and the right of the Borrower to select the rate specified in such clause (ii) shall thereupon terminate. (c) The Borrower shall indemnify the Bank against any loss or expense which the Bank may sustain or incur as a consequence of any default in payment or prepayment of the principal amount of any LIBO Rate Advance. 2.9 Inability to Determine LIBO Rate In the event that the Bank shall have determined that: (i) by reason of circumstances affecting the London interbank market generally, adequate and reasonable means do not exist for ascertaining the LIBO Rate with respect to a proposed LIBO Rate Advance that the Borrower has requested; or (ii) the LIBO Rate will not adequately and fairly reflect the cost to the Bank of maintaining or funding a proposed LIBO Rate Advance that the Borrower has requested, then, the Bank shall forthwith give prompt notice, confirmed in writing, of such determination to the Borrower, at least one Business Day prior to the Note date for such Advance. If such notice is given, any requested Advance to be evidenced by a Note in the form of Appendix A shall be made as a Base Rate Advance to be evidenced by a Note in the form of Appendix A-1. 2.10 Optional Prepayment The Borrower may prepay the Notes in the form of Appendix A-1 hereto in whole at any time or in part from time to time, without premium or penalty, by giving one (1) Business Day's notice to the Bank specifying the amount and date of the proposed prepayment, except that Notes in the form of Appendix A hereto are not prepayable. If notice is given as prescribed above, the principal amount of the Notes which the Borrower proposes to prepay, together with accrued interest on such amount to the date of payment, shall become due and payable on the specified date of prepayment. 2.11 Termination or Reduction of Commitment The Borrower shall have the right, at any time and from time to time, upon three Business Days' notice to the Bank, to terminate in whole or reduce in part the unused Commitment of the Bank provided that any such reductions shall be in multiples of $1,000,000 or the remaining amount of the Commitment. 2.12 Computation of Interest and Commitment Fee Interest under the Notes and the commitment fee hereun- der shall be computed on the basis of a year of 365 or 366 days, as the case may be, for the actual number of days elapsed, except that interest under any Notes in the form of Appendix A shall be computed on the basis of a year of 360 days for the actual number of days elapsed. 2.13 Payments and Endorsements All payments of principal and interest required or per- mitted to be made by the Borrower hereunder or under the Notes, and all payments of commitment fees hereunder, shall be made to each Bank in immediately available funds at the address of such Bank set forth under its signature hereto (or at such other address as such Bank shall have designated pursuant to Section 8.6 hereof) not later than 2:00 p.m. New York time on the day when due at the place of payment. Whenever any payment to be made hereunder or under the Notes shall be stated to be due on a day which is not a Business Day, such payment may be made on the next succeeding Business Day, provided, however, that in the case of a Note in the form of Appendix A, if such extension would cause such payment to be made in a new calendar month, such payment shall be made on the next preceding Business Day; and such extension of time shall in such case be included in the computation, at the applicable rate, of the payment of interest. Section 3. Conditions of Lending 3.1 Initial Advance The obligation of the Bank to make the initial Advance to Borrower to be made by such Bank pursuant to its Commitment is subject to the following conditions precedent: (a) The Agreement shall have been duly entered into between the several parties referred to in the Agreement and shall be on the date of such initial Advance in full force and effect. (b) The Bank shall have received the written opinion addressed to the Bank, of counsel for the Borrower, who may be an attorney employed by American Electric Power Service Corporation, an affiliate of the Borrower, in form and substance satisfactory to such Bank, as to the due incorporation and existence of the Borrower, the corporate power of the Borrower to make and perform the Agreement and to borrow under this Agreement, and the due authorization, execution and delivery of the Agreement and, when executed and delivered pursuant to this Agreement, of the Notes. Such written opinion shall affirm that the Agreement constitutes the legal, valid and binding obligations of the Borrower, all enforceable in accordance with its terms; that the Notes when executed and delivered by the Borrower will constitute legal, valid and binding obligations of the Borrower enforceable in accordance with their terms; that the making and performance by the Borrower of the Agreement and the Advances and Notes under this Agreement will not violate any provi- sion of law or of the articles of incorporation or of the by-laws of the Borrower or result in a breach of or constitute a default under any agreement to which the Borrower is a party; that the Borrower has obtained all consents and approvals of governmental regulatory authorities then required under law or regulation to authorize the execution, delivery and performance of the Agreement and to authorize the issuance of the Notes under this Agreement, that none of said consents or approvals is the subject of any pending or, to the best of the knowledge of such counsel, threatened suit, action, regulatory action or appeal, by direct pro- ceedings or otherwise. (c) The Bank shall have received certified copies of all corporate proceedings taken by the Borrower authorizing the execution and delivery of the Agreement and authorizing the Advances herein provided for and the execution and delivery of this Agreement and the Notes, together with such other certifications and incumbency certificates as to matters of fact as shall be reasonably requested by such Bank, all in substance satisfactory to such Bank. (d) The Bank shall have received a copy, certified by the Secretary or an Assistant Secretary of the Borrower, of the order of the Securities and Exchange Commission referred to in paragraph (e) of Section _____. 3.2 All Advances The obligation of the Bank to make each Advance, including the first Advance, pursuant to its Commitment is subject to the following additional conditions precedent: (a) Note. The Bank shall have received a Note, dated the day of the Advance, drawn to the order of the Bank in the principal amount of the Advance. (b) Representations, Etc. Correct. The representations and warranties contained in Section 4.1 shall be correct on and as of the date of such Advance as though made on and as of such date. (c) No Default. No event shall have occurred and be continuing, or would result from such Advance, which constitutes an Event of Default or, with notice or lapse of time or both, would constitute an Event of Default. (d) Status of Governmental Approvals. All requi- site consents and approvals of governmental regulatory authorities to the making and performance of the Agree- ments and to the issuance and performance of the Notes shall have been obtained and remain in effect. Section 4. Representations and Warranties In order to induce the Bank to enter into this Agreement and to make the Advances hereunder, the Borrower represents and war- rants that: (a) The Borrower is a corporation duly organized, existing and in good standing under the laws of the State in which it is incorporated and has all requisite corporate power to conduct its business, to own its properties and to execute and deliver, and to perform all of its obligations under, this Agreement and the Notes. (b) The execution, delivery and performance by the Borrower of the Agreement and the execution and delivery by the Borrower of the Notes have been duly authorized by all necessary corporate action and do not and will not (i) require any consent or approval of the stockholders of the Borrower, (ii) contravene any provision of any law, rule, regulation, order, judgment, injunction, decree, determination or award applicable to the Borrower or any provision of the charter or by-laws of the Borrower or (iii) result in a breach of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance on any of the properties of the Borrower pursuant to any indenture, mortgage, Advance or credit agreement, lease, or any other agreement or instrument to which the Borrower is a party or by which it or its properties may be bound or affected. (c) The balance sheet and the related statement of income and retained earnings of the Borrower as of ___________ _____ ___, 1995, copies of which have been delivered to the Bank, fairly represents the financial condition of the Borrower and the results of operations of the Borrower at such date are in accordance with generally accepted accounting principles consistently applied throughout the period involved; and there has been no material adverse change in the business or assets or in the condition or operations, financial or otherwise, of the Borrower since _______________ ___, ________. (d) This Agreement constitutes, and each Note when executed and delivered hereunder will constitute, a legal, valid and binding obligation of the Borrower enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors' rights in general, and except as the availability of the remedy of specific performance is subject to general principles of equity (regardless of whether such remedy is sought in a proceeding in equity or at law). (e) No consent, approval, authorization, order or other action of any governmental body, bureau or agency or any other third party is required in connection with the execution, delivery and performance by the Borrower of this Agreement and the Notes, except only for an order of the Securities and Exchange Commission under the Public Utility Holding Company Act of 1935, which order has been obtained. (f) There is no pending or threatened action, suit, investigation, litigation or proceeding affecting the Borrower, except as otherwise disclosed in the financial statements or otherwise reported to the Bank prior to the date of this Agreement, before any court, governmental agency or arbitrator, which may materially adversely affect the business, condition (financial or otherwise), of the Borrower or (ii) purports to affect the legality, validity, or enforceability of the Agreement or any Note or the consummation of the transactions contemplated hereby. (g) No part of the proceeds of such borrowings under this Agreement will be used by the Borrower to purchase or carry any margin stock (as defined in Regulation U or the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of purchasing or carrying any such margin stock. Section 5. Affirmative Covenants The Borrower hereby covenants and agrees that, from the date of this Agreement and until the Commitments have expired or have been terminated and all of the Notes have been paid in full: 5.1 Financial Statements and Reports The Borrower will furnish to the Bank: (a) within 90 days after the end of each of the first three quarters of each fiscal year of the Borrower, the balance sheet of the Borrower as of the end of each such quarter and the statements of income and retained earnings and cash flows of the Borrower for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of the Borrower; (b) within 130 days after the end of each fiscal year of the Borrower, a copy of the annual report for each such year, containing financial statements for such year certified by Deloitte & Touche LLP or another independent public accountant or recognized standby; and (c) such other information respecting the condition or operations, financial or otherwise, of the Borrower as the Bank may from time to time reasonably request. 5.2 Maintenance of Corporate Existence; Etc. The Borrower will preserve and maintain its corporate existence in the jurisdiction of its incorporation (except in the case of a merger in which the successor corporation assumes the obligations of the Borrower under any outstanding Note and this Agreement) and the rights, franchises and privileges necessary for the ordinary conduct of its business, will maintain its properties and assets in good working order and condition and will maintain, with respect to its properties and assets and its business, insurance with financially sound and reputable insurers against loss or damage of the kinds and in the amounts customarily carried under similar circumstances by other corporations engaged in the same or similar businesses and similarly situated. Notwithstanding the provisions of the foregoing sentence, however, the Borrower may self-insure by deductible provisions in a prudent amount with respect to each loss. 5.3 Compliance with Laws, Etc. The Borrower will comply in all material respects with all applicable laws, rules, regulations and orders, such compliance to include, without limitation, paying before the same become delinquent, all taxes, assessments and govern- mental imposed upon it or upon its property except to the extent contested in good faith. 5.4 Notices The Borrower will promptly give notice to the Bank of (a) any litigation affecting the Borrower in which the amount involved is $10,000,000 or more and is not covered by insurance and (b) the occurrence of each Event of Default and each event which, with notice of lapse of time or both, would constitute an Event of Default. 5.5 Negative Covenants The Borrower covenants and agrees that during the term of this Agreement, and so long as any Note remains outstanding and unpaid, it will not, without the written consent of the Banks holding a majority of the Commitments: (a) Limitation on Liens, Etc. Create, incur, assume or suffer to be created, incurred, assumed, or to exist, any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature (all of the foregoing being hereinafter referred to in this Section as "liens") upon or with respect to any of its property or assets, whether now owned or hereafter acquired, except that the foregoing restrictions shall not apply to: (i) liens for taxes, assessments or govern- mental charges or levies not yet delinquent or being contested in good faith by appropriate pro- ceedings; (ii) liens of landlords and liens of carri- ers, warehouseman, mechanics and materialmen incurred in the ordinary course of business for sums not yet due or being contested in good faith by appropriate proceedings; (iii) liens incurred or deposits made in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security, or to secure the performance of or compliance with statutory obligations, tenders, bids, leases, surety and appeal bonds, performance and return-of-money bonds and other similar obligations (other than obligations for the payment of borrowed money); (iv) any judgment lien, unless the judgment it secures shall not, within sixty days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged within sixty days after the expiration of any such stay; (v) liens on any property acquired, constructed or improved by the Company after the date of this Agreement, or liens on any property existing at the time of the acquisition thereof, provided that the lien shall not apply to any property theretofore owned by the Company other than any theretofore unimproved real property on which the property so constructed, or the improvement, is located; (vi) liens created pursuant to the Borrower's first mortgage, if any, which covers all of the Borrower's property, as supplemented and amended through the date hereof, including liens created thereunder prior to or after the date hereof (whether pursuant to such "after acquired property" provisions or granting clauses in supplemental indentures, which granting clauses are consistent in all respects with such "after acquired property" provisions), and liens that constitute "permitted encumbrances" under such mortgage; (vii) liens incidental to the conduct of the Company's business or the ownership of its property and assets, which were not incurred in connection with the borrowing of money or the obtaining of credit, none of which materially interferes with the Company's use and operation of its properties and assets or detracts from the value thereof; and (viii) liens for the sole purpose of exten- ding, renewing or replacing in whole or in part the indebtedness secured by any lien referred to in the foregoing clauses (i) and (v) or in this clause (viii); provided, however, that the principal amount of indebtedness secured thereby shall not exceed the principal amount of indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the property which secured the lien so extended, renewed or replaced (any improvements on such property). (b) Pension Plans. Permit any employee pension benefit plan (within the meaning of Section 3(2)(A) of the Employee Retirement Income Security Act) with respect to which the Borrower may have any liability to terminate, or withdraw from such plan, while there shall exist an accumulated funding deficiency of more than $10,000,000, unless such plan is a multiemployer plan of the United Mine Workers of America. (c) Limitation on Mergers. Merge into or consolidate with any corporation or other entity, or permit any corporation or other entity to merge into or consolidate with it, or sell or otherwise dispose of all or substantially all of its assets to any other corporation or entity, if, in any such case, such successor corporation or entity shall fail to assume the obligations of the Borrower under the terms of this Agreement. Section 6. Events of Default If any of the following events shall happen and be continuing: (a) the Borrower shall fail to pay any part of the principal of any Note when due, or shall fail to pay any interest on any Note or any commitment fee within five days after the due date thereof; or (b) any representation or warranty made by the Borrower in this Agreement, or any certificate, report, financial or other statement furnished by the Borrower to the Bank at any time under or in connection with this Agree- ment, shall be untrue in any material respect at the date as of which the same shall be made or furnished; or (c) the Borrower shall fail to perform or observe any covenant, condition or agreement herein contained to be per- formed and observed by the Borrower and any such failure shall remain unremedied for a period of 10 days after written notice thereof shall have been given by any Bank to the Borrower; or (d) the Borrower shall file a voluntary petition or an answer seeking liquidation, reorganization or any other relief under Title 11 of the United States Code or under any other insolvency act or law, state or federal, now or hereafter existing; or consent to the approval or the granting of an involuntary petition so filed; or apply for, or consent to the appointment of, a custodian, liquidator, receiver or trustee for the Borrower or for all or a substantial part of its property; or make an assignment for the benefit of creditors; or admit in writing its inability to pay its debts as they mature; or (e) the filing of an involuntary petition against the Borrower seeking liquidation, reorganization or any other relief under Title 11 of the United States Code, or under any other insolvency act or law, state or federal, now or hereafter existing, or the involuntary appointment of a custodian, liquidator, receiver or trustee for the Borrower or for all or a substantial part of its property, or the issuance of a warrant of attachment or similar process against any substantial part of the property of the Borrower and such proceeding, appointment, warrant or process shall remain undismissed or undischarged for 60 days (excluding any period during which any stay is in effect); or (f) the Borrower shall fail to pay the principal of or interest on any obligation of the Borrower for borrowed money (other than under this Agreement and the Notes) when due, whether by acceleration, by required prepayment or otherwise, for a period longer than any period of grace provided in such obligation, or fail to perform any other term, condition or covenant contained in any such obligation, the effect of which is to cause, or to permit the holder of such obligation or others on its behalf to cause, such obligation then to become due prior to its stated maturity, unless such failure shall have been cured or effectively waived; or (g) all of the Common Stock (except Common Stock of American Electric Power Company, Inc. ("AEP")), other than directors' qualifying shares, of the Borrower, or of any successor, corporation or entity, shall not be owned, directly or indirectly, by AEP, or a successor thereto; or Section 7. Miscellaneous 7.1 No Waiver; Remedies Cumulative No failure or delay on the part of the Bank or any other holder of any Note to exercise any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privi- lege. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law. 7.2 Governing Law This Agreement and the Notes, and the rights and obligations of the parties hereunder and thereunder, shall be construed and interpreted in accordance with the laws of the State of New York. 7.3 Costs, Expenses and Taxes The Borrower agrees to pay or reimburse the Bank and any other holder of any Note for the payment of (i) all reasonable out-of-pocket expenses of such Bank or holder, including reasonable attorneys' fees, arising in connection with the enforcement or preservation of any rights under this Agreement and the Notes and (ii) any and all present and future stamp and other taxes (including interest and penalties, if any) which may be assessed or payable in respect of the Notes, or of any modification of the Notes, or of this Agreement. 7.4 Survival of Agreements, Etc. All agreements, representations, warranties and covenants made herein shall survive the delivery of the Notes and the making of the Advances hereunder and shall bind and inure to the benefit of the successors and assigns of the Borrower and the Bank whether so expressed or not, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein (except as provided in Section 6.4) without the prior written consent of the Bank. The obligations of the Borrower under Sections 2.10 and 8.4 shall survive the payment of the Notes. 7.5 Notices All notices, requests, demands, directions and other communications hereunder shall be either in writing (in- cluding telegraphic communication) or by telephone communication confirmed in writing before the effectiveness of the action proposed to be taken in connection with such notice, etc. and transmitted to the applicable party at the address designated in the following sentence. All written notices, requests, demands, directions and other communications hereunder shall be deemed to have been given when deposited in the mails or delivered to a telegraph company, postage or fees prepaid (except that notices to the Bank pursuant to the provisions of Section 2 shall not be effective until received), addressed: (a) if to the Borrower, to c/o Vice President - Finance, American Electric Power Service Corp., 1 Riverside Plaza, Columbus, Ohio, 43215, and (b) if to the Bank, to its address set forth below its signature hereto. Any party may from time to time designate another address for the receipt of notices, etc. by delivering to each other party a notice complying with the terms of this Section 7.5. 7.6 Waiver of Trial by Jury The Bank and the Borrower waive the right to trial by jury in any civil action or proceeding or counterclaim arising out of, based upon, or in any way connected to this Agreement or the Notes. 7.7 Jurisdiction, Service of Process In connection with any civil action or proceeding arising out of, based upon or in any way connected to this Agreement or the Notes, the Borrower submits to the non- exclusive jurisdiction of state and federal courts located in the City and State of New York in personam and agrees that such courts are convenient forums. The Borrower waives personal service upon it and consents to service of process by mailing a copy thereof to it at 1 Riverside Plaza, Columbus, Ohio 43215, Attention of John F. DiLorenzo, Jr., by registered or certified mail. 7.8 Counterparts This Agreement may be executed in any number of counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 7.9 Headings The headings of the sections and subsections of this Agreement are for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. 7.10 Right of Set-Off Upon the occurrence and during the continuance of any Event of Default the Bank is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Bank to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement and any Note, whether or not the Bank shall have made any demand under this Agreement or any Note and although such obligations may be unmatured. The Bank agrees promptly to notify the Borrower after any such set-off and application, provided that the failure to give such notice shall not affect the validity to such set-off and application. The rights of the Bank under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Bank may have. 7.11 Assignments and Participations The Bank may assign all or any part of its rights and obligations under this Agreement to another bank or other entity, in which event, upon notice thereof by the Bank to the Borrower and receipt by the Bank of the Borrower's written consent to such assignment, such consent not to be unreasonably withheld, the assignee shall have, to the extent of such assignment, the same rights and benefits as it would have if it were the Bank hereunder. The Bank may grant to any one or more financial institutions (each a "Participant"), on a participating basis, but not as a party to this Agreement, a participation or participations in all or any part of the Bank's rights and benefits under this Agreement and the Notes. The Participant's rights against the Bank in respect of such participation shall be those set forth in the agreement(s) executed by the Bank in favor of the participant relating thereto and all amounts payable by the Borrower under Section 2 shall be determined as if the Bank had not sold such participation. The Bank may furnish any information concerning the Borrower in the possession of the Bank from time to time to assignees and participants (including prospective assignees and participants). Notwithstanding the foregoing provisions of this Section 7.11, the Bank may at any time pledge or assign all or any portion of its rights under this Agreement and the Notes to a Federal Reserve Bank; provided, however, that no such pledge or assignment shall release the Bank from its obligations hereunder. 7.12 Amendments and Waivers Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Borrower and the Banks holding a majority of the Commitments; provided that no such amendment or waiver shall, unless signed by all the Banks, (i) increase the amount of any Commitment or the Commitment Percentage of any Bank or subject any Bank to any additional obligation, (ii) reduce the principal of or rate of interest on any Advance or the rate at which any fees are payable hereunder, (iii) postpone the date fixed for any payment of principal of or interest on any Advance or any fees hereunder or for any reduction or termination of any Commitment, or (iv) amend this Section 7.12. 7.13 Binding Effect This Agreement shall become effective (other than Section 2.1, which shall only become effective upon satisfaction of the conditions precedent set forth in Section 3.1) when it shall have been executed by the Borrower and the Bank and thereafter shall be binding upon and inure to the benefit of the Borrower and the Bank and their respective successors and assigns, except that Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Bank. In Witness Whereof, the parties hereto have caused this Agreement to be duly executed and delivered by their duly autho- rized officers as of the day and year first above written. The Bank: CITIBANK, N.A. By: Title: Vice President 399 Park Avenue New York, New York 10022 American Electric Power Company, Inc. Appalachian Power Company Columbus Southern Power Company Indiana Michigan Power Company Kentucky Power Company Ohio Power Company By: G. P. Maloney, Vice President of each of the above named companies APPENDIX A Non-Prepayable, Fixed Rate Promissory Note $ , 19 For value received, the undersigned promises to pay to the order of (the "Bank"), at its principal office in , the sum of ($ ) on , 19 , and to pay interest thereon from the date hereof at maturity at the fixed rate of ______% per annum. Any principal not paid when due shall bear interest from maturity until paid in full at a fluctuating rate per annum equal to 1% plus that rate of interest from time to time announced by the Bank at said principal office as its ______ rate. All payments hereunder shall be made in lawful money of the United States and in immediately available funds. Interest shall be calculated on the basis of a year of 360 days. This Note is issued pursuant to, and is entitled to the benefits of, the Revolving Credit Agreement currently in effect between the Borrower and the Bank. The events of default which may cause the acceleration of the maturity of this Note shall be as specified in the Revolving Credit Agreement currently in effect between the Bank and the Borrower. Except as provided in the preceding paragraph, this Note may not be prepaid. The undersigned agrees to pay all expenses of enforcement, including collection costs and reasonable attorneys' fees in case default is made in the payment of this Note or the Advance evidenced hereby. This Note shall be construed according to and governed by the laws of the State of New York. By: APPENDIX A-1 Prepayable, Floating Rate Promissory Note $ , 19 For value received, the undersigned promises to pay to the order of (the "Bank"), at its principal office in , the sum of ($ ) on , 19 , and to pay interest thereon from the date hereof to maturity at a floating rate per annum equal to the higher of: (a) the Federal Funds Rate plus 1/2 of 1% or (b) the ______ rate (such higher rate being the "Floating Rate"). Any principal not paid when due shall bear interest from maturity until paid in full at a floating rate per annum equal to 1% plus that rate of interest from time to time announced by the Bank at said principal office as its ______ rate. All payments hereunder shall be made in lawful money of the United States and in immediately available funds. Interest shall be calculated on the basis of a year of 365 or 366 days. This Note is issued pursuant to, and is entitled to the benefits of, the Revolving Credit Agreement currently in effect between the Borrower and the Bank. The events of default which may cause the acceleration of the maturity of this Note shall be as specified in the Revolving Credit Agreement currently in effect between the Bank and the Borrower. This Note may be prepaid (either partially or fully) by the undersigned by giving at least three business days' notice to the Bank. The undersigned agrees to pay all expenses of enforcement, including collection costs and reasonable attorneys' fees in case default is made in the payment of this Note or the Advance evidenced hereby. This Note shall be construed according to and governed by the laws of the State of New York. By: EXHIBIT F (614) 223-1649 September ___, 1995 Securities and Exchange Commission Division of Corporate Regulation 450 Fifth Street, N.W. Washington, D.C. 20549 Re: American Electric Power Company, Inc. AEP Generating Company Appalachian Power Company Columbus Southern Power Company Indiana Michigan Power Company Kentucky Power Company Kingsport Power Company Ohio Power Company Wheeling Power Company File No. 70- Gentlemen: I have acted as counsel for American Electric Power Company, Inc. ("American") and certain of its subsidiaries in the above- captioned matter, which involves the short-term financing program for American, AEP Generating Company ("Generating"), Appalachian Power Company ("Appalachian"), Columbus Southern Power Company ("Columbus"), Indiana Michigan Power Company ("Indiana"), Kentucky Power Company ("Kentucky"), Kingsport Power Company ("Kingsport"), Ohio Power Company ("Ohio") and Wheeling Power Company ("Wheeling") for the period from January 1, 1996, through December 31, 2000. The proposed short-term financing program of American, Appalachian, Columbus, Indiana, Kentucky and Ohio involves the issuance, reissuance and sale of short-term debt, in the form of notes to banks and commercial paper to one or more dealers in commercial paper for resale, in aggregate amounts not to exceed $150,000,000; $250,000,000; $175,000,000; $175,000,000; $150,000,000; and $250,000,000, respectively, outstanding at any one time, from time to time subsequent to December 31, 1995, and prior to January 1, 2001. The proposed short-term financing program of Generating, Kingsport, and Wheeling involves the issuance, reissuance and sale of short-term debt in the form of notes to banks in aggregate amounts not to exceed $100,000,000; $30,000,000; and $30,000,000, respectively, outstanding at any one time, from time to time subsequent to December 31, 1995, and prior to January 1, 2001. In connection with my review of the above-described and proposed transactions, I have examined, among other things, the Application or Declaration on Form U-1 as filed by American and its subsidiaries with your Commission under the Public Utility Holding Company Act of 1935; and the resolutions proposed to be adopted by the Boards of Directors of American, Generating, Appalachian, Columbus, Indiana, Kentucky, Kingsport, Ohio and Wheeling authorizing the proposed short-term financing program and the filing of all necessary applications for regulatory approvals in connection therewith. In my opinion, if said Application or Declaration on Form U-1 as filed with your Commission is granted or permitted to become effective, if all necessary actions are taken by the Boards of Directors of American, Generating, Appalachian, Columbus, Indiana, Kentucky, Kingsport, Ohio and Wheeling, and if the proposed transactions are consummated in accordance with said Application or Declaration on Form U-1: (a) all state laws applicable to the proposed transactions will have been complied with; (b) American, Appalachian, Columbus, Indiana, Kentucky and Ohio, the proposed issuers of the notes to banks and the commercial paper, are validly organized and duly existing corporations and such notes to banks and such commercial paper will be valid and binding obligations of American, Appalachian, Columbus, Indiana, Kentucky and Ohio in accordance with their terms; (c) Generating, Kingsport and Wheeling, the proposed issuers of the notes to banks, are validly organized and duly existing corporations and such notes to banks will be valid and binding obligations of Generating, Kingsport and Wheeling in accordance with their terms; and (d) the consummation of the proposed transactions will not violate the legal rights of the holders of any securities issued by American, Appalachian, Generating, Columbus, Indiana, Kentucky, Kingsport, Ohio and Wheeling, or by any associate company of any of them. I consent to the use of this opinion as part of the above- mentioned Application or Declaration on Form U-1. Very truly yours, Ann B. Graf Counsel for American Electric Power Company, Inc. AEP Generating Company Appalachian Power Company Columbus Southern Power Company Indiana Michigan Power Company Kentucky Power Company Kingsport Power Company Ohio Power Company Wheeling Power Company [95FN0015.AEP] EXHIBIT G UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 Release No. ______ / , 1995 : In the Matter of : : AMERICAN ELECTRIC POWER COMPANY, INC., et al.: 1 Riverside Plaza : Columbus, Ohio 43215 : : ( ) : : NOTICE OF PROPOSED ISSUANCE AND SALE OF SHORT-TERM NOTES American Electric Power Company, Inc. ("American"), a registered holding company, and its subsidiaries, AEP Generating Company ("Generating"), Appalachian Power Company ("Appalachian"), Columbus Southern Power Company ("Columbus"), Indiana Michigan Power Company ("Indiana"), Kentucky Power Company ("Kentucky"), Kingsport Power Company ("Kingsport"), Ohio Power Company ("Ohio") and Wheeling Power Company ("Wheeling") (collectively the "Companies"), have filed a proposal with this Commission pursuant to Sections 6(a) and 6(b) of the Public Utility Holding Company Act of 1935 ("Act") and Rules 45 and 54 under the Act. During the period beginning January 1, 1996, and ending December 31, 2000, American, Appalachian, Columbus, Indiana, Kentucky and Ohio propose to issue and sell short-term notes to banks and commercial paper to dealers in aggregate principal amounts not to exceed $150 million, $250 million, $175 million, $175 million, $150 million and $250 million, respectively, outstanding at any one time. Generating, Kingsport and Wheeling propose to issue and sell short-term notes to banks in aggregate principal amounts not to exceed $100 million, $30 million and $30 million, respectively, outstanding at any one time during such period. All bank notes will mature not more than 270 days after the date of issuance or renewal. None will mature later than June 30, 2001. The notes to banks will be sold through various credit arrangements, including revolving credit agreements or shared lines of credit with different terms. Fees and balances for credit arrangements are borne by the Companies in proportion to their respective projected maximum need for such credit. With such fees and with balances maintained solely to fulfill borrowing requirements, no credit arrangement would result in an effective cost of borrowing exceeding 125% of the prime commercial rate in effect from time to time, or not more than 10.94% based on a prime rate of 8.75%. The commercial paper notes to be sold by American, Appalachian, Columbus, Indiana, Kentucky and Ohio will not be prepayable, will have varying maturities not in excess of 270 days, and will be sold directly to a dealer at a discount not in excess of the discount rate per annum prevailing at the time of issuance for commercial paper of comparable quality and maturity. The proceeds from the borrowings by American, Appalachian, Generating, Columbus, Indiana, Kentucky, Kingsport, Ohio, and Wheeling will be used to pay their general obligations including expenditures incurred in their various construction projects, and for other corporate purposes. The proposal and any amendments thereto are available for public inspection through the Commission's Office of Public Reference. Interested persons wishing to comment or request a hearing should submit their views in writing by October ____, 1995, to the Secretary, Securities and Exchange Commission, Washington, D.C. 20549, and serve a copy on the applicant at the address specified above. Proof of service (by affidavit or, in the case of an attorney at law, by certificate) should be filed with the request. Any request for a hearing shall identify specifically the issues of fact or law that are disputed. A person who so requests will be notified of any hearing, if ordered, and will receive a copy of any notice or order issued in this matter. After said date, the proposal, as filed or as amended, may be authorized. For the Commission, by the Office of Public Utility Regulation, pursuant to delegated authority. Jonathan G. Katz Secretary [95FN0016.AEP] EX-99 2 CONSOLIDATED STMTS OF INCOME AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF INCOME (in thousands, except per-share amounts) (UNAUDITED)
Twelve Months Ended June 30, 1995 OPERATING REVENUES. . . . . . . . . $5,389,434 OPERATING EXPENSES: Fuel and Purchased Power. . . . . . . . 1,581,895 Other Operation . . . . . . . . . . . . 1,055,527 Maintenance . . . . . . . . . . . . . . 530,781 Depreciation and Amortization . . . . . . . 585,167 Taxes Other Than Federal Income Taxes . . 493,333 Federal Income Taxes. . . . . . . . . . . .218,683 TOTAL OPERATING EXPENSES. . . . 4,465,386 OPERATING INCOME. . . . . . . . . . . . . . 924,048 NONOPERATING INCOME: Deferred Zimmer Plant Carrying Charges (net of tax). . . . . . . . . . . . . . 3,775 Other . . . . . . . . . . . . . . . . . . . 11,634 TOTAL NONOPERATING INCOME . . . . . 15,409 INCOME BEFORE INTEREST CHARGES AND PREFERRED DIVIDENDS . . . . . . . . . . . 939,457 INTEREST CHARGES. . . . . . . . . . . . . . 395,525 PREFERRED STOCK DIVIDEND REQUIREMENTS OF SUBSIDIARIES. . . . . . . . 56,339 NET INCOME. . . . . . . . . . . . . . . . $487,593 AVERAGE NUMBER OF SHARES OUTSTANDING. . . . . 185,145 EARNINGS PER SHARE. . . . . . . . . . . . . . $2.63 CASH DIVIDENDS PAID PER SHARE . . . . . . . . $2.40 CONSOLIDATED STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 BALANCE AT BEGINNING OF PERIOD. . . . . . . . $1,304,036 NET INCOME. . . . . . . . . . . . . . . . . . . 487,593 DEDUCTIONS: Cash Dividends Declared . . . . . . . . . . . 444,151 Other . . . . . . . . . . . . . . . . . . . . 218 BALANCE AT END OF PERIOD. . . . . . . . . . . .$1,347,260 /TABLE AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production . . . . . . . . . . . . . . . . . . $ 9,221,368 Transmission . . . . . . . . . . . . . . . . . 3,290,181 Distribution . . . . . . . . . . . . . . . . . 4,053,712 General (including mining assets and nuclear fuel) 1,460,057 Construction Work in Progress. . . . . . . . . 282,223 Total Electric Utility Plant . . . . . 18,307,541 Accumulated Depreciation and Amortization. . . 6,955,693 NET ELECTRIC UTILITY PLANT . . . . . . 11,351,848 OTHER PROPERTY AND INVESTMENTS . . . . . . . . . 763,934 CURRENT ASSETS: Cash and Cash Equivalents. . . . . . . . . . . 129,198 Accounts Receivable. . . . . . . . . . . . . . 459,935 Allowance for Uncollectible Accounts . . . . . (7,236) Fuel . . . . . . . . . . . . . . . . . . . . . 341,474 Materials and Supplies . . . . . . . . . . . . 221,276 Accrued Utility Revenues . . . . . . . . . . . 155,301 Prepayments and Other. . . . . . . . . . . . . 146,665 TOTAL CURRENT ASSETS . . . . . . . . . 1,446,613 REGULATORY ASSETS. . . . . . . . . . . . . . . . 2,129,235 DEFERRED CHARGES . . . . . . . . . . . . . . . . 269,038 TOTAL. . . . . . . . . . . . . . . . . $15,960,668 /TABLE AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock-Par Value $6.50: 1995 Shares Authorized . . . .300,000,000 Shares Issued . . . . . .194,934,992 (8,999,992 shares were held in treasury)....... $ 1,267,077 Paid-in Capital.................................. 1,650,719 Retained Earnings................................ 1,347,260 Total Common Shareholders' Equity........ 4,265,056 Cumulative Preferred Stocks of Subsidiaries: Not Subject to Mandatory Redemption............ 233,240 Subject to Mandatory Redemption................ 590,300 Long-term Debt................................... 4,731,543 TOTAL CAPITALIZATION..................... 9,820,139 OTHER NONCURRENT LIABILITIES....................... 788,189 CURRENT LIABILITIES: Long-term Debt Due Within One Year............... 349,353 Short-term Debt.................................. 430,875 Accounts Payable................................. 164,712 Taxes Accrued.................................... 284,895 Interest Accrued................................. 85,856 Obligations Under Capital Leases ................ 87,937 Other............................................ 312,046 TOTAL CURRENT LIABILITIES................ 1,715,674 DEFERRED INCOME TAXES.............................. 2,644,540 DEFERRED INVESTMENT TAX CREDITS................... 444,048 DEFERRED GAIN ON SALE AND LEASEBACK - ROCKPORT PLANT UNIT 2............................ 407,794 DEFERRED CREDITS................................... 140,284 TOTAL.................................. $15,960,668 /TABLE AEP GENERATING COMPANY STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES. . . . . . . . . . . . $230,604 OPERATING EXPENSES: Fuel. . . . . . . . . . . . . . . . . . 97,586 Rent - Rockport Plant Unit 2. . . . . . 65,778 Other Operation . . . . . . . . . . . . 11,372 Maintenance . . . . . . . . . . . . . . 11,145 Depreciation. . . . . . . . . . . . . . 21,633 Taxes Other Than Federal Income Taxes . 4,121 Federal Income Taxes. . . . . . . . . . 3,463 TOTAL OPERATING EXPENSES. . . . 215,098 OPERATING INCOME. . . . . . . . . . . . . 15,506 NONOPERATING INCOME . . . . . . . . . . . 3,549 INCOME BEFORE INTEREST CHARGES. . . . . . 19,055 INTEREST CHARGES. . . . . . . . . . . . . 9,659 NET INCOME. . . . . . . . . . . . . . . . $ 9,396 STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD. . . . . . $1,185 NET INCOME. . . . . . . . . . . . . . . . 9,396 CASH DIVIDENDS DECLARED . . . . . . . . . 6,260 BALANCE AT END OF PERIOD. . . . . . . . . $4,321 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE AEP GENERATING COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production . . . . . . . . . . . . . . . . . . . $628,386 General. . . . . . . . . . . . . . . . . . . . . 2,922 Construction Work in Progress. . . . . . . . . . 973 Total Electric Utility Plant . . . . . . 632,281 Accumulated Depreciation . . . . . . . . . . . . 208,138 NET ELECTRIC UTILITY PLANT . . . . . . . 424,143 CURRENT ASSETS: Cash and Cash Equivalents. . . . . . . . . . . . 3 Accounts Receivable. . . . . . . . . . . . . . . 20,710 Fuel . . . . . . . . . . . . . . . . . . . . . . 19,455 Materials and Supplies . . . . . . . . . . . . . 4,097 Prepayments. . . . . . . . . . . . . . . . . . . 367 TOTAL CURRENT ASSETS . . . . . . . . . . 44,632 REGULATORY ASSETS. . . . . . . . . . . . . . . . . 11,038 DEFERRED CHARGES . . . . . . . . . . . . . . . . . 13,082 TOTAL. . . . . . . . . . . . . . . . . $492,895 /TABLE AEP GENERATING COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - Par Value $1,000: Authorized and Outstanding - 1,000 Shares. . . $ 1,000 Paid-in Capital. . . . . . . . . . . . . . . . . 47,735 Retained Earnings. . . . . . . . . . . . . . . . 4,321 Total Common Shareholder's Equity. . . . 53,056 Long-term Debt . . . . . . . . . . . . . . . . . 53,416 TOTAL CAPITALIZATION . . . . . . . . . . 106,472 OTHER NONCURRENT LIABILITIES . . . . . . . . . . . 2,043 CURRENT LIABILITIES: Long-term Debt Due Within One Year . . . . . . . 55,000 Short-term Debt - Notes Payable. . . . . . . . . 9,700 Accounts Payable . . . . . . . . . . . . . . . . 6,349 Taxes Accrued. . . . . . . . . . . . . . . . . . 4,437 Interest Accrued . . . . . . . . . . . . . . . . 2,956 Rent Accrued - Rockport Plant Unit 2 . . . . . . 4,963 Other. . . . . . . . . . . . . . . . . . . . . . 2,384 TOTAL CURRENT LIABILITIES. . . . . . . . 85,789 DEFERRED GAIN ON SALE AND LEASEBACK - ROCKPORT PLANT UNIT 2. . . . . . . . . . . . . . 207,310 DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . 78,780 DEFERRED INCOME TAXES. . . . . . . . . . . . . . . 12,501 TOTAL. . . . . . . . . . . . . . . . . $492,895 /TABLE APPALACHIAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES . . . . . . . . . . . $1,475,016 OPERATING EXPENSES: Fuel . . . . . . . . . . . . . . . . . 356,145 Purchased Power. . . . . . . . . . . . 281,066 Other Operation. . . . . . . . . . . . 207,545 Maintenance. . . . . . . . . . . . . . 132,522 Depreciation and Amortization. . . . . 131,438 Taxes Other Than Federal Income Taxes. 116,395 Federal Income Taxes . . . . . . . . . 45,308 TOTAL OPERATING EXPENSES . . . 1,270,419 OPERATING INCOME . . . . . . . . . . . . 204,597 NONOPERATING LOSS. . . . . . . . . . . . (5,812) INCOME BEFORE INTEREST CHARGES . . . . . 198,785 INTEREST CHARGES . . . . . . . . . . . . 102,557 NET INCOME . . . . . . . . . . . . . . . 96,228 PREFERRED STOCK DIVIDEND REQUIREMENTS. . 16,581 EARNINGS APPLICABLE TO COMMON STOCK. . . $ 79,647 CONSOLIDATED STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD . . . . . $222,835 NET INCOME . . . . . . . . . . . . . . . 96,228 DEDUCTIONS: Cash Dividends Declared: Common Stock . . . . . . . . . . . . 107,488 Cumulative Preferred Stock . . . . . 15,677 Capital Stock Expense. . . . . . . . . 733 BALANCE AT END OF PERIOD . . . . . . . . $195,165 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE APPALACHIAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production......................................... $1,854,672 Transmission....................................... 1,031,271 Distribution....................................... 1,366,009 General............................................ 163,652 Construction Work in Progress...................... 60,920 Total Electric Utility Plant............... 4,476,524 Accumulated Depreciation and Amortization.......... 1,663,212 NET ELECTRIC UTILITY PLANT................. 2,813,312 OTHER PROPERTY AND INVESTMENTS....................... 30,781 CURRENT ASSETS: Cash and Cash Equivalents.......................... 5,041 Accounts Receivable................................ 128,033 Allowance for Uncollectible Accounts............... (1,978) Fuel............................................... 82,259 Materials and Supplies............................. 49,599 Accrued Utility Revenues........................... 42,303 Prepayments........................................ 17,563 TOTAL CURRENT ASSETS ...................... 322,820 REGULATORY ASSETS.................................... 435,209 DEFERRED CHARGES..................................... 59,754 TOTAL.................................... $3,661,876 /TABLE APPALACHIAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - No Par Value: Authorized - 30,000,000 Shares Outstanding - 13,499,500 Shares............... $ 260,458 Paid-in Capital.................................. 509,683 Retained Earnings................................ 195,165 Total Common Shareholder's Equity........ 965,306 Cumulative Preferred Stock: Not Subject to Mandatory Redemption............ 55,000 Subject to Mandatory Redemption................ 190,300 Long-term Debt................................... 1,278,163 TOTAL CAPITALIZATION..................... 2,488,769 OTHER NONCURRENT LIABILITIES....................... 82,492 CURRENT LIABILITIES: Long-term Debt Due Within One Year............... 7,251 Short-term Debt.................................. 112,475 Accounts Payable................................. 77,540 Taxes Accrued.................................... 38,537 Customer Deposits................................ 14,395 Interest Accrued................................. 17,581 Other............................................ 69,301 TOTAL CURRENT LIABILITIES................ 337,080 DEFERRED INCOME TAXES.............................. 646,736 DEFERRED INVESTMENT TAX CREDITS.................... 75,616 DEFERRED CREDITS................................... 31,183 TOTAL.................................. $3,661,876 /TABLE COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES............................ $1,021,738 OPERATING EXPENSES: Fuel........................................ 190,610 Purchased Power............................. 132,994 Other Operation............................. 177,843 Maintenance................................. 73,010 Depreciation................................ 84,316 Amortization of Zimmer Plant Phase-in Costs. 31,816 Taxes Other Than Federal Income Taxes...... 105,420 Federal Income Taxes........................ 44,236 TOTAL OPERATING EXPENSES............ 840,245 OPERATING INCOME.............................. 181,493 NONOPERATING INCOME: Deferred Zimmer Plant Carrying Charges (net of tax) 3,775 Other....................................... 1,138 TOTAL NONOPERATING INCOME........... 4,913 INCOME BEFORE INTEREST CHARGES................ 186,406 INTEREST CHARGES.............................. 80,380 NET INCOME.................................... 106,026 PREFERRED STOCK DIVIDEND REQUIREMENTS......... 12,813 EARNINGS APPLICABLE TO COMMON STOCK........... $ 93,213 CONSOLIDATED STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD................. $ 27,895 NET INCOME (LOSS).............................. 106,026 DEDUCTIONS: Cash Dividends Declared: Common Stock............................... 70,344 Cumulative Preferred Stock................ 12,813 Capital Stock Expense........................ 139 BALANCE AT END OF PERIOD....................... $ 50,625 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production.......................................... $1,468,418 Transmission........................................ 308,331 Distribution........................................ 817,155 General............................................. 115,006 Construction Work in Progress....................... 66,296 Total Electric Utility Plant................ 2,775,206 Accumulated Depreciation............................ 918,892 NET ELECTRIC UTILITY PLANT.................. 1,856,314 OTHER PROPERTY AND INVESTMENTS........................ 26,269 CURRENT ASSETS: Cash and Cash Equivalents........................... 10,644 Accounts Receivable................................. 52,272 Allowance for Uncollectible Accounts................ (2,876) Fuel................................................ 27,482 Materials and Supplies.............................. 23,118 Accrued Utility Revenues............................ 35,260 Prepayments and Other............................... 42,684 TOTAL CURRENT ASSETS........................ 188,584 REGULATORY ASSETS..................................... 458,128 DEFERRED CHARGES...................................... 35,854 TOTAL..................................... $2,565,149 /TABLE COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - No Par Value: Authorized - 24,000,000 Shares Outstanding - 16,410,426 Shares.................. $ 41,026 Paid-in Capital.................................... 565,742 Retained Earnings.................................. 50,625 Total Common Shareholder's Equity.......... 657,393 Cumulative Preferred Stock - Subject to Mandatory Redemption............................. 150,000 Long-term Debt..................................... 917,836 TOTAL CAPITALIZATION....................... 1,725,229 OTHER NONCURRENT LIABILITIES......................... 40,252 CURRENT LIABILITIES: Long-term Debt Due Within One Year................. 30,000 Short-term Debt.................................... 72,175 Accounts Payable................................... 42,625 Taxes Accrued...................................... 65,959 Interest Accrued................................... 18,120 Other.............................................. 25,753 TOTAL CURRENT LIABILITIES.................. 254,632 DEFERRED INCOME TAXES................................ 462,414 DEFERRED INVESTMENT TAX CREDITS...................... 62,759 DEFERRED CREDITS..................................... 19,863 TOTAL.................................... $2,565,149 /TABLE INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES................................ $1,238,281 OPERATING EXPENSES: Fuel............................................ 221,413 Purchased Power................................. 104,415 Other Operation................................. 294,979 Maintenance..................................... 130,990 Depreciation and Amortization................... 137,187 Amortization of Rockport Plant Unit 1 Phase-in Plan Deferrals....................... 15,644 Taxes Other Than Federal Income Taxes........... 71,419 Federal Income Taxes............................ 46,372 TOTAL OPERATING EXPENSES................ 1,022,419 OPERATING INCOME.................................. 215,862 NONOPERATING INCOME............................... 3,330 INCOME BEFORE INTEREST CHARGES.................... 219,192 INTEREST CHARGES.................................. 71,810 NET INCOME........................................ 147,382 PREFERRED STOCK DIVIDEND REQUIREMENTS............. 11,577 EARNINGS APPLICABLE TO COMMON STOCK............... $ 135,805 CONSOLIDATED STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD................... $200,611 NET INCOME....................................... 147,382 DEDUCTIONS: Cash Dividends Declared: Common Stock................................. 108,730 Cumulative Preferred Stock................... 11,560 Capital Stock Expense.......................... 198 BALANCE AT END OF PERIOD......................... $227,505 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production........................................ $2,511,916 Transmission...................................... 865,079 Distribution...................................... 651,476 General (including nuclear fuel).................. 183,030 Construction Work in Progress..................... 71,612 Total Electric Utility Plant.............. 4,283,113 Accumulated Depreciation and Amortization......... 1,710,903 NET ELECTRIC UTILITY PLANT................ 2,572,210 NUCLEAR DECOMMISSIONING AND SPENT NUCLEAR FUEL DISPOSAL TRUST FUNDS......................... 389,351 OTHER PROPERTY AND INVESTMENTS...................... 136,456 CURRENT ASSETS: Cash and Cash Equivalents......................... 55,416 Accounts Receivable............................... 124,274 Allowance for Uncollectible Accounts.............. (232) Fuel.............................................. 33,114 Materials and Supplies............................ 62,541 Accrued Utility Revenues.......................... 43,202 Prepayments....................................... 13,588 TOTAL CURRENT ASSETS...................... 331,903 REGULATORY ASSETS................................... 549,229 DEFERRED CHARGES.................................... 52,822 TOTAL................................... $4,031,971 /TABLE INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - No Par Value: Authorized - 2,500,000 Shares Outstanding - 1,400,000 Shares.................. $ 56,584 Paid-in Capital.................................... 734,511 Retained Earnings.................................. 227,505 Total Common Shareholder's Equity.......... 1,018,600 Cumulative Preferred Stock: Not Subject to Mandatory Redemption.............. 52,000 Subject to Mandatory Redemption.................. 135,000 Long-term Debt..................................... 1,034,849 TOTAL CAPITALIZATION....................... 2,240,449 OTHER NONCURRENT LIABILITIES: Nuclear Decommissioning............................ 244,763 Other.............................................. 172,409 TOTAL OTHER NONCURRENT LIABILITIES......... 417,172 CURRENT LIABILITIES: Long-term Debt Due Within One Year................. 90,000 Short-term Debt - Commercial Paper................. 69,250 Accounts Payable................................... 35,065 Taxes Accrued...................................... 55,688 Interest Accrued................................... 17,706 Obligations Under Capital Leases................... 30,700 Other.............................................. 76,822 TOTAL CURRENT LIABILITIES.................. 375,231 DEFERRED INCOME TAXES................................ 622,451 DEFERRED INVESTMENT TAX CREDITS...................... 167,461 DEFERRED GAIN ON SALE AND LEASEBACK - ROCKPORT PLANT UNIT 2.............................. 200,484 DEFERRED CREDITS..................................... 8,723 TOTAL.................................... $4,031,971 /TABLE KENTUCKY POWER COMPANY STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES. . . . . . . . . . . . $302,331 OPERATING EXPENSES: Fuel. . . . . . . . . . . . . . . . . . 63,388 Purchased Power . . . . . . . . . . . . 90,183 Other Operation . . . . . . . . . . . . 42,677 Maintenance . . . . . . . . . . . . . . 28,118 Depreciation. . . . . . . . . . . . . . 23,713 Taxes Other Than Federal Income Taxes . 7,577 Federal Income Tax Expense. . . . . . . 1,368 TOTAL OPERATING EXPENSES. . . . 257,024 OPERATING INCOME. . . . . . . . . . . . . 45,307 NONOPERATING LOSS . . . . . . . . . . . . (77) INCOME BEFORE INTEREST CHARGES. . . . . . 45,230 INTEREST CHARGES. . . . . . . . . . . . . 22,183 NET INCOME. . . . . . . . . . . . . . . . $ 23,047 STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD. . . . . . $87,186 NET INCOME. . . . . . . . . . . . . . . . 23,047 CASH DIVIDENDS DECLARED . . . . . . . . . 22,158 BALANCE AT END OF PERIOD. . . . . . . . . $88,075 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE KENTUCKY POWER COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production . . . . . . . . . . . . . . . . . . . . $226,380 Transmission . . . . . . . . . . . . . . . . . . . 261,063 Distribution . . . . . . . . . . . . . . . . . . . 302,035 General. . . . . . . . . . . . . . . . . . . . . . 57,695 Construction Work in Progress. . . . . . . . . . . 16,865 Total Electric Utility Plant . . . . . . . 864,038 Accumulated Depreciation and Amortization. . . . . 265,602 NET ELECTRIC UTILITY PLANT . . . . . . . . 598,436 OTHER PROPERTY AND INVESTMENTS . . . . . . . . . . . 6,505 CURRENT ASSETS: Cash and Cash Equivalents. . . . . . . . . . . . . 851 Accounts Receivable. . . . . . . . . . . . . . . . 22,719 Allowance for Uncollectible Accounts . . . . . . . (438) Fuel . . . . . . . . . . . . . . . . . . . . . . . 10,972 Material and Supplies. . . . . . . . . . . . . . . 9,877 Accrued Utility Revenues . . . . . . . . . . . . . 4,910 Prepayments. . . . . . . . . . . . . . . . . . . . 2,233 TOTAL CURRENT ASSETS . . . . . . . . . . . 51,124 REGULATORY ASSETS. . . . . . . . . . . . . . . . . . 79,173 DEFERRED CHARGES . . . . . . . . . . . . . . . . . . 9,176 TOTAL. . . . . . . . . . . . . . . . . . $744,414 /TABLE KENTUCKY POWER COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - $50 Par Value: Authorized - 2,000,000 Shares Outstanding - 1,009,000 Shares . . . . . . . . . $ 50,450 Paid-in Capital. . . . . . . . . . . . . . . . . . 68,750 Retained Earnings. . . . . . . . . . . . . . . . . 88,075 Total Common Shareholder's Equity. . . . . 207,275 First Mortgage Bonds . . . . . . . . . . . . . . . 224,191 Subordinated Debentures. . . . . . . . . . . . . . 38,835 TOTAL CAPITALIZATION . . . . . . . . . . . 470,301 OTHER NONCURRENT LIABILITIES . . . . . . . . . . . . 12,359 CURRENT LIABILITIES: Long-term Debt Due Within One Year . . . . . . . . 29,436 Short-term Debt. . . . . . . . . . . . . . . . . . 26,900 Accounts Payable . . . . . . . . . . . . . . . . . 15,694 Customer Deposits. . . . . . . . . . . . . . . . . 3,981 Taxes Accrued. . . . . . . . . . . . . . . . . . . 5,737 Interest Accrued . . . . . . . . . . . . . . . . . 5,768 Other. . . . . . . . . . . . . . . . . . . . . . . 11,442 TOTAL CURRENT LIABILITIES. . . . . . . . . 98,958 DEFERRED INCOME TAXES. . . . . . . . . . . . . . . . 142,722 DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . . 14,803 DEFERRED CREDITS . . . . . . . . . . . . . . . . . . 5,271 TOTAL. . . . . . . . . . . . . . . . . . $744,414 /TABLE KINGSPORT POWER COMPANY STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES. . . . . . . . . . . . . $78,800 OPERATING EXPENSES: Purchased Power - Affiliated Company. . . 58,438 Other Operation . . . . . . . . . . . . . 6,790 Maintenance . . . . . . . . . . . . . . . 2,472 Depreciation. . . . . . . . . . . . . . . 2,208 Taxes Other Than Federal Income Taxes . . 3,719 Federal Income Taxes. . . . . . . . . . . 200 TOTAL OPERATING EXPENSES. . . . . 73,827 OPERATING INCOME. . . . . . . . . . . . . . 4,973 NONOPERATING INCOME . . . . . . . . . . . . 221 INCOME BEFORE INTEREST CHARGES. . . . . . . 5,194 INTEREST CHARGES. . . . . . . . . . . . . . 2,535 NET INCOME. . . . . . . . . . . . . . . . . $ 2,659 STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD. . . . . . . $5,717 NET INCOME. . . . . . . . . . . . . . . . . 2,659 CASH DIVIDENDS DECLARED . . . . . . . . . . 1,766 BALANCE AT END OF PERIOD. . . . . . . . . . $6,610 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE KINGSPORT POWER COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Transmission . . . . . . . . . . . . . . . . . . . . $10,358 Distribution . . . . . . . . . . . . . . . . . . . . 56,113 General. . . . . . . . . . . . . . . . . . . . . . . 3,610 Construction Work in Progress. . . . . . . . . . . . 1,748 Total Electric Utility Plant . . . . . . . . 71,829 Accumulated Depreciation . . . . . . . . . . . . . . 24,593 NET ELECTRIC UTILITY PLANT . . . . . . . . . 47,236 OTHER PROPERTY AND INVESTMENTS . . . . . . . . . . . . 154 CURRENT ASSETS: Cash and Cash Equivalents. . . . . . . . . . . . . . 330 Accounts Receivable (net). . . . . . . . . . . . . . 4,849 Materials and Supplies . . . . . . . . . . . . . . . 515 Accrued Utility Revenues . . . . . . . . . . . . . . 2,525 Prepayments. . . . . . . . . . . . . . . . . . . . . 396 TOTAL CURRENT ASSETS . . . . . . . . . . . . 8,615 REGULATORY ASSETS. . . . . . . . . . . . . . . . . . . 5,433 DEFERRED CHARGES . . . . . . . . . . . . . . . . . . . 593 TOTAL. . . . . . . . . . . . . . . . . . . $62,031 /TABLE KINGSPORT POWER COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - No Par Value: Authorized - 500,000 Shares Outstanding - 410,000 Shares . . . . . . . . . . . $ 4,100 Paid-in Capital. . . . . . . . . . . . . . . . . . . 5,800 Retained Earnings. . . . . . . . . . . . . . . . . . 6,610 Total Common Shareholder's Equity. . . . . . 16,510 Long-term Debt - Notes Payable to Banks. . . . . . . 10,000 TOTAL CAPITALIZATION . . . . . . . . . . . . 26,510 OTHER NONCURRENT LIABILITIES . . . . . . . . . . . . . 1,022 CURRENT LIABILITIES: Long-term Debt Due Within One Year . . . . . . . . . 12,000 Short-term Debt - Notes Payable. . . . . . . . . . . 5,250 Accounts Payable . . . . . . . . . . . . . . . . . . 5,041 Customer Deposits. . . . . . . . . . . . . . . . . . 813 Taxes Accrued. . . . . . . . . . . . . . . . . . . . 836 Other. . . . . . . . . . . . . . . . . . . . . . . . 1,261 TOTAL CURRENT LIABILITIES. . . . . . . . . . 25,201 DEFERRED INCOME TAXES. . . . . . . . . . . . . . . . . 7,880 DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . . . 1,214 DEFERRED CREDITS . . . . . . . . . . . . . . . . . . . 204 TOTAL. . . . . . . . . . . . . . . . . . . $62,031 /TABLE OHIO POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES. . . . . . . . . . . . . . $1,687,136 OPERATING EXPENSES: Fuel. . . . . . . . . . . . . . . . . . . . 594,927 Purchased Power . . . . . . . . . . . . . . 51,601 Other Operation . . . . . . . . . . . . . . 246,392 Maintenance . . . . . . . . . . . . . . . . 148,688 Depreciation and Amortization . . . . . . . 134,645 Taxes Other Than Federal Income Taxes . . . 179,698 Federal Income Taxes. . . . . . . . . . . . 81,728 TOTAL OPERATING EXPENSES. . . . . . 1,437,679 OPERATING INCOME. . . . . . . . . . . . . . . 249,457 NONOPERATING INCOME . . . . . . . . . . . . . 10,935 INCOME BEFORE INTEREST CHARGES. . . . . . . . 260,392 INTEREST CHARGES. . . . . . . . . . . . . . . 92,437 NET INCOME. . . . . . . . . . . . . . . . . . 167,955 PREFERRED STOCK DIVIDEND REQUIREMENTS . . . . 15,369 EARNINGS APPLICABLE TO COMMON STOCK . . . . . $ 152,586 CONSOLIDATED STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD. . . . . . . . $485,759 NET INCOME. . . . . . . . . . . . . . . . . . 167,955 DEDUCTIONS: Cash Dividends Declared: Common Stock. . . . . . . . . . . . . . . 138,948 Cumulative Preferred Stock. . . . . . . . 15,301 Capital Stock Expense . . . . . . . . . . . 135 BALANCE AT END OF PERIOD. . . . . . . . . . . $499,330 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE OHIO POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production......................................... $2,531,595 Transmission....................................... 792,939 Distribution....................................... 803,671 General (including mining assets).................. 723,724 Construction Work in Progress...................... 61,184 Total Electric Utility Plant............... 4,913,113 Accumulated Depreciation and Amortization.......... 2,064,559 NET ELECTRIC UTILITY PLANT................. 2,848,554 OTHER PROPERTY AND INVESTMENTS....................... 110,764 CURRENT ASSETS: Cash and Cash Equivalents.......................... 55,568 Accounts Receivable................................ 177,446 Allowance for Uncollectible Accounts............... (1,579) Fuel............................................... 168,191 Materials and Supplies............................. 70,989 Accrued Utility Revenues........................... 25,228 Prepayments........................................ 62,265 TOTAL CURRENT ASSETS....................... 558,108 REGULATORY ASSETS.................................... 562,786 DEFERRED CHARGES..................................... 96,395 TOTAL.................................... $4,176,607 /TABLE OHIO POWER COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - No Par Value: Authorized - 40,000,000 Shares Outstanding - 27,952,473 Shares................... $ 321,201 Paid-in Capital..................................... 463,100 Retained Earnings................................... 499,330 Total Common Shareholder's Equity........... 1,283,631 Cumulative Preferred Stock: Not Subject to Mandatory Redemption............... 126,240 Subject to Mandatory Redemption................... 115,000 Long-term Debt...................................... 1,089,253 TOTAL CAPITALIZATION........................ 2,614,124 OTHER NONCURRENT LIABILITIES.......................... 189,510 CURRENT LIABILITIES: Long-term Debt Due Within One Year.................. 99,667 Short-term Debt..................................... 91,350 Accounts Payable.................................... 80,833 Taxes Accrued....................................... 110,714 Interest Accrued.................................... 22,530 Obligations Under Capital Leases.................... 26,351 Other............................................... 85,051 TOTAL CURRENT LIABILITIES................... 516,496 DEFERRED INCOME TAXES................................. 724,603 DEFERRED INVESTMENT TAX CREDITS....................... 41,476 DEFERRED CREDITS...................................... 90,398 TOTAL..................................... $4,176,607 /TABLE WHEELING POWER COMPANY STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended June 30, 1995 (in thousands) OPERATING REVENUES . . . . . . . . . . . . . . . . $83,068 OPERATING EXPENSES: Purchased Power - Affiliated Company . . . . . . 61,026 Other Operation. . . . . . . . . . . . . . . . . 8,072 Maintenance. . . . . . . . . . . . . . . . . . . 3,837 Depreciation . . . . . . . . . . . . . . . . . . 2,566 Taxes Other Than Federal Income Taxes. . . . . . 4,801 Federal Income Tax (Credit). . . . . . . . . . . (725) TOTAL OPERATING EXPENSES . . . . . . . . 79,577 OPERATING INCOME . . . . . . . . . . . . . . . . . 3,491 NONOPERATING LOSS. . . . . . . . . . . . . . . . . (62) INCOME BEFORE INTEREST CHARGES . . . . . . . . . . 3,429 INTEREST CHARGES . . . . . . . . . . . . . . . . . 2,742 NET INCOME . . . . . . . . . . . . . . . . . . . . $ 687 STATEMENT OF RETAINED EARNINGS (UNAUDITED) Twelve Months Ended June 30, 1995 (in thousands) BALANCE AT BEGINNING OF PERIOD . . . . . . . . . . $6,961 NET INCOME . . . . . . . . . . . . . . . . . . . . 687 CASH DIVIDENDS DECLARED. . . . . . . . . . . . . . 2,392 BALANCE AT END OF PERIOD . . . . . . . . . . . . . $5,256 The common stock of the Company is wholly owned by American Electric Power Company, Inc. /TABLE WHEELING POWER COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) ASSETS ELECTRIC UTILITY PLANT: Transmission..................................... $21,139 Distribution..................................... 57,255 General.......................................... 6,812 Construction Work in Progress.................... 2,626 Total Electric Utility Plant............. 87,832 Accumulated Depreciation......................... 34,137 NET ELECTRIC UTILITY PLANT............... 53,695 OTHER PROPERTY AND INVESTMENTS..................... 2,918 CURRENT ASSETS: Cash and Cash Equivalents........................ 186 Accounts Receivable.............................. 6,629 Allowance for Uncollectible Accounts............. (72) Materials and Supplies........................... 540 Accrued Utility Revenues......................... 1,874 Prepayments and Other............................ 267 TOTAL CURRENT ASSETS..................... 9,424 REGULATORY ASSETS.................................. 15,433 DEFERRED CHARGES................................... 1,143 TOTAL.................................. $82,613 /TABLE WHEELING POWER COMPANY BALANCE SHEET (UNAUDITED)
June 30, 1995 (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - No Par Value: Authorized and Outstanding - 150,000 Shares........ $ 2,428 Paid-in Capital...................................... 12,596 Retained Earnings.................................... 5,256 Total Common Shareholder's Equity............ 20,280 Long-term Debt - Notes Payable to Banks.............. 5,000 TOTAL CAPITALIZATION......................... 25,280 OTHER NONCURRENT LIABILITIES........................... 4,722 CURRENT LIABILITIES: Long-term Debt Due Within One Year................... 21,000 Short-term Debt - Notes Payable...................... 4,725 Accounts Payable..................................... 5,039 Customer Deposits.................................... 399 Taxes Accrued........................................ 3,178 Interest Accrued..................................... 382 Other................................................ 1,505 TOTAL CURRENT LIABILITIES.................... 36,228 DEFERRED INCOME TAXES.................................. 15,251 DEFERRED INVESTMENT TAX CREDITS........................ 685 DEFERRED CREDITS....................................... 447 TOTAL...................................... $82,613 /TABLE EX-27 3 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1
OPUR1 0000004904 AMERICAN ELECTRIC POWER COMPANY, INC. 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 11,351,848 763,934 1,446,613 269,038 2,129,235 15,960,668 1,267,077 1,650,719 1,347,260 4,265,056 590,300 233,240 4,731,543 25,625 0 405,250 349,353 85 307,302 87,937 4,964,977 15,960,668 5,389,434 237,510 4,227,876 4,465,386 924,048 15,409 939,457 395,525 487,593 56,339 487,593 444,151 270,793 882,013 $2.63 $2.63 Represents preferred stock dividend requirements of subsidiaries; deducted before computation of net income.
EX-27 4 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000857571 AEP GENERATING COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 424,143 6 44,632 13,076 11,038 492,895 1,000 47,735 4,321 53,056 0 0 53,416 9,700 0 0 55,000 0 2,043 472 319,208 492,895 230,604 3,820 211,278 215,098 15,506 3,549 19,055 9,659 9,396 0 9,396 6,260 0 13,814 0 0 All common stock owned by parent company; no EPS required.
EX-27 5 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000006879 APPALACHIAN POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 2,813,312 30,781 322,820 59,754 435,209 3,661,876 260,458 509,683 195,165 965,306 190,300 55,000 1,278,163 1,575 0 110,900 7,251 85 36,066 10,916 1,006,314 3,661,876 1,475,016 51,957 1,218,462 1,270,419 204,597 (5,812) 198,785 102,557 96,228 16,581 79,647 107,488 77,768 199,057 0 0 All common stock owned by parent company; no EPS required.
EX-27 6 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000022198 COLUMBUS SOUTHERN POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 1,856,314 26,269 188,584 35,854 458,128 2,565,149 41,026 565,742 50,625 657,393 150,000 0 917,836 500 0 71,675 30,000 0 21,801 5,009 710,935 2,565,149 1,021,738 44,239 796,006 840,245 181,493 4,913 186,406 80,380 106,026 12,813 93,213 70,344 66,894 195,520 0 0 All common stock owned by parent company; no EPS required.
EX-27 7 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000050172 INDIANA MICHIGAN POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 2,572,210 525,807 331,903 52,822 549,229 4,031,971 56,584 734,511 227,505 1,018,600 135,000 52,000 1,034,849 0 0 69,250 90,000 0 107,254 30,700 1,494,318 4,031,971 1,238,281 54,504 967,915 1,022,419 215,862 3,330 219,192 71,810 147,382 11,577 135,805 108,730 43,410 247,351 0 0 All common stock owned by parent company; no EPS required.
EX-27 8 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000055373 KENTUCKY POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 598,436 6,505 51,124 9,176 79,173 744,414 50,450 68,750 88,075 207,275 0 0 263,026 3,350 0 23,550 29,436 0 6,739 2,112 208,926 744,414 302,331 1,999 255,025 257,024 45,307 (77) 45,230 22,183 23,047 0 23,047 22,158 19,090 30,803 0 0 All common stock owned by parent company; no EPS required.
EX-27 9 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000055986 KINGSPORT POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 47,236 154 8,615 593 5,433 62,031 4,100 5,800 6,610 16,510 0 0 10,000 5,250 0 0 12,000 0 702 190 17,379 62,031 78,800 200 73,627 73,827 4,973 221 5,194 2,535 2,659 0 2,659 1,766 0 3,525 0 0 All common stock owned by parent company; no EPS required.
EX-27 10 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000073986 OHIO POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 2,848,554 110,764 558,108 96,395 562,786 4,176,607 321,201 463,100 499,330 1,283,631 115,000 126,240 1,089,253 525 0 90,825 99,667 0 103,945 26,351 1,241,170 4,176,607 1,687,136 84,870 1,352,809 1,437,679 249,457 10,935 260,392 92,437 167,955 15,369 152,586 138,948 63,631 246,026 0 0 All common stock owned by parent company; no EPS required.
EX-27 11 ARTICLE OPUR1 FIN. DATA SCH. FOR U-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 0000106617 WHEELING POWER COMPANY 1,000 12-MOS DEC-31-1994 JUN-30-1995 PER-BOOK 53,695 2,918 9,424 1,143 15,433 82,613 2,428 12,596 5,256 20,280 0 0 5,000 4,725 0 0 21,000 0 3,433 551 27,624 82,613 83,068 (811) 80,388 79,577 3,491 (62) 3,429 2,742 687 0 687 2,392 0 (533) 0 0 All common stock owned by parent company; no EPS required.
EX-99 12 FUNDFLOW STATEMENTS APPALACHIAN POWER COMPANY 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 192 234 304 334 334 DEBT MATURITIES 7 0 67 33 2 --------- --------- --------- --------- --------- SUB-TOTAL 199 234 371 367 336 LESS: INTERNAL FUNDS(EX-AFUDC) 150 149 151 150 182 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS 49 85 220 217 154 ========= ========= ========= ========= ========= LONG-TERM DEBT 0 75 100 100 85 COMMON EQUITY 40 25 60 60 60 SHORT-TERM DEBT 9 (15) 60 57 9 --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS 49 85 220 217 154 ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 130 139 124 184 241 ENDING 139 124 184 241 250
COLUMBUS SOUTHERN POWER COMPANY 1996-2000 FUNDS FLOW $MILLIONS
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 106 104 91 97 97 DEBT MATURITIES 0 15 84 3 3 --------- --------- --------- --------- --------- SUB-TOTAL 106 119 175 100 100 LESS: INTERNAL FUNDS(EX-AFUDC) 107 105 108 110 120 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS (1) 14 67 (10) (20) ========= ========= ========= ========= ========= LONG-TERM DEBT 0 0 20 10 0 COMMON EQUITY 0 0 0 0 0 SHORT-TERM DEBT (1) 14 47 (20) (20) --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS (1) 14 67 (10) (20) ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 115 114 128 175 155 ENDING 114 128 175 155 135
INDIANA MICHIGAN POWER COMPANY 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 150 150 163 125 150 DEBT MATURITIES 0 0 41 35 0 --------- --------- --------- --------- --------- SUB-TOTAL 150 150 204 160 150 LESS:INTERNAL FUNDS(EX-AFUDC) 140 130 160 140 150 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS 10 20 44 20 0 ========= ========= ========= ========= ========= LONG-TERM DEBT 0 0 0 0 0 COMMON EQUITY 0 0 0 0 0 SHORT-TERM DEBT 10 20 44 20 0 --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS 10 20 44 20 0 ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 80 90 110 154 174 ENDING 90 110 154 174 174
KENTUCKY POWER COMPANY 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 65 65 66 65 50 DEBT MATURITIES 29 0 0 35 0 --------- --------- --------- --------- --------- SUB-TOTAL 94 65 66 100 50 LESS:INTERNAL FUNDS(EX-AFUDC) (10) 8 14 19 24 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS 104 57 52 81 26 ========= ========= ========= ========= ========= LONG-TERM DEBT 30 30 40 35 30 COMMON EQUITY 20 20 15 15 10 SHORT-TERM DEBT 54 7 (3) 31 (14) --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS 104 57 52 81 26 ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 61 115 122 119 150 ENDING 115 122 119 150 136
OHIO POWER COMPANY 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 195 200 181 196 200 DEBT MATURITIES 47 50 56 4 0 --------- --------- --------- --------- --------- SUB-TOTAL 242 250 237 200 200 LESS:INTERNAL FUNDS(EX-AFUDC) 198 190 218 215 225 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS 44 60 19 (15) (25) ========= ========= ========= ========= ========= LONG-TERM DEBT 0 0 0 0 0 COMMON EQUITY 0 0 0 0 0 SHORT-TERM DEBT 44 60 19 (15) (25) --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS 44 60 19 (15) (25) ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 127 171 231 250 235 ENDING 171 231 250 235 210
KINGSPORT POWER COMPANY 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 4 5 4 4 4 DEBT MATURITIES 10 0 0 10 0 --------- --------- --------- --------- --------- SUB-TOTAL 14 5 4 14 4 LESS: INTERNAL FUNDS(EX-AFUDC) 3 3 3 3 3 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS 11 2 1 11 1 ========= ========= ========= ========= ========= LONG-TERM DEBT 0 0 0 0 0 COMMON EQUITY 0 0 0 2 0 SHORT-TERM DEBT 11 2 1 9 1 --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS 11 2 1 11 1 ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 6 17 19 20 29 ENDING 17 19 20 29 30
WHEELING POWER COMPANY 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 6 6 5 5 5 DEBT MATURITIES 10 0 0 5 0 --------- --------- --------- --------- --------- SUB-TOTAL 16 6 5 10 5 LESS: INTERNAL FUNDS(EX-AFUDC) 2 3 4 2 2 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS 14 3 1 8 3 ========= ========= ========= ========= ========= LONG-TERM DEBT 0 0 0 2 3 COMMON EQUITY 2 0 0 0 0 SHORT-TERM DEBT 12 3 1 6 0 --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS 14 3 1 8 3 ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 8 20 23 24 30 ENDING 20 23 24 30 30
AEP GENERATING 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- -------- CONSTRUCTION (EX-AFUDC) 5 5 5 5 5 DEBT MATURITIES 0 15 0 15 0 --------- --------- --------- --------- --------- SUB-TOTAL 5 20 5 20 5 LESS: INTERNAL FUNDS(EX-AFUDC) 7 5 6 7 5 --------- --------- --------- --------- --------- EXTERNAL REQUIREMENTS (2) 15 (1) 13 0 ========= ========= ========= ========= ========= LONG-TERM DEBT 0 0 0 0 0 COMMON EQUITY (8) (8) (8) (5) (5) SHORT-TERM DEBT 6 23 7 18 5 --------- --------- --------- --------- --------- TOTAL EXTERNAL FUNDS (2) 15 (1) 13 0 ========= ========= ========= ========= ========= SHORT-TERM DEBT BALANCES: BEGINNING 41 47 70 77 95 ENDING 47 70 77 95 100
AEP CO., INC. 1996-2000 FUNDS FLOW ($MILLIONS)
1996 1997 1998 1999 2000 -------- -------- -------- -------- ------- CAPTIAL CONTRIBUTIONS: APPALACHIAN POWER COMPANY 40 25 60 60 60 COLUMBUS SOUTHERN POWER COMPANY 0 0 0 0 0 INDIANA MICHIGAN POWER COMPANY 0 0 0 0 0 KENTUCKY POWER COMPANY 20 20 15 15 10 KINGSPORT POWER COMPANY 0 0 0 2 0 OHIO POWER COMPANY 0 0 0 0 0 WHEELING POWER COMPANY 2 0 0 0 0 ----- ----- ----- ----- ----- SUB-TOTAL 62 45 75 77 70 ----- ----- ----- ----- ----- LESS: OTHER INCOME 43 34 34 34 34 ----- ----- ----- ----- ----- EXTERNAL FUNDING REQUIREMENTS: 19 11 41 43 36 ======= ======= ======= ======= ======= SHORT-TERM DEBT TOTAL EXTERNAL FUNDS: 19 11 41 43 36 ======= ======= ======= ======= ======= SHORT-TERM BALANCES: BEGINNING 0 19 30 71 114 ENDING 19 30 71 114 150