-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IGMgOHhhQboe3ZTqcPJ+KemZcSAn30a5DeZHLHSFLpNUx4yFmW3qeKpmL2BilNIo 86X/70o70f0i2F5POvVwVA== 0000891092-04-004945.txt : 20041021 0000891092-04-004945.hdr.sgml : 20041021 20041021080615 ACCESSION NUMBER: 0000891092-04-004945 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041021 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041021 DATE AS OF CHANGE: 20041021 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN ELECTRIC POWER CO 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03525 FILM NUMBER: 041088569 BUSINESS ADDRESS: STREET 1: 1 RIVERSIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-716-1193 MAIL ADDRESS: STREET 1: 1 RIVERSIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 FORMER COMPANY: FORMER CONFORMED NAME: KINGSPORT UTILITIES INC DATE OF NAME CHANGE: 19660906 8-K 1 e19372_8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) October 21, 2004 AMERICAN ELECTRIC POWER COMPANY, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) New York - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-3525 13-4922640 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 1 Riverside Plaza, Columbus, OH 43215 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) 614-716-1000 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition The information, including the exhibit attached hereto, in this Current Report is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise stated in such filing. Attached and incorporated herein by reference as Exhibit 99 is a copy of the press release of American Electric Power Company, Inc.'s financial results for the quarter ending September 30, 2004. Item 9.01. Financial Statements and Exhibits (c) Exhibits Exhibit 99.1 Press Release dated October 21, 2004 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMERICAN ELECTRIC POWER COMPANY, INC. By: /s/ Thomas G. Berkemyer -------------------------------- Name: Thomas G. Berkemeyer Title: Assistant Secretary October 21, 2004 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release dated October 21, 2004 EX-99.1 2 e19372ex99_1.txt PRESS RELEASE Exhibit 99.1 AEP Reports 2004 Third-Quarter Earnings -- Third-quarter results: GAAP $1.34 per share, ongoing $0.80 per share -- Higher industrial demand, lower expenses help offset mild weather, ECOM absence -- Company affirms previous 2004 ongoing earnings guidance range of $2.20 to $2.40 COLUMBUS, Ohio, Oct. 21 /PRNewswire-FirstCall/ -- AMERICAN ELECTRIC POWER Preliminary, unaudited results (EPS based on 395mm shares Q3 2003, 396mm in Q3 2004, 382mm in 9 mo. 2003 and 396mm in 9 mo.2004) Third quarter ended Sept. 30 9-months ended Sept. 30 2003 2004 Variance 2003 2004 Variance Revenue ($ in billions) 3.9 3.7 (0.2) 11.2 10.4 (0.8) Earnings ($ in millions): GAAP 257 530 273 872 912 40 Ongoing 352 318 (34) 778 757 (21) EPS ($): GAAP 0.65 1.34 0.69 2.28 2.30 0.02 Ongoing 0.89 0.80 (0.09) 2.04 1.91 (0.13) American Electric Power (NYSE: AEP) today reported 2004 third-quarter earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $530 million, or $1.34 per share, compared with $257 million, or $0.65 per share, in the same period last year. One-time gains in third-quarter 2004, related to the sale of assets, were primary contributors to $212 million in special items that improved the company's performance when compared to the prior period when the company recorded a loss of $95 million on special items. Ongoing earnings (earnings excluding special items) for third-quarter 2004 were $318 million, or $0.80 per share, compared with $352 million, or $0.89 per share, in the same period last year. The key factor in the third-quarter ongoing earnings performance, when compared with the prior period, is the absence of a non-cash Texas stranded cost recovery mechanism (commonly referred to as ECOM) in 2004 that added $60.6 million pre-tax, or $0.10 per share, to ongoing earnings in last year's third quarter. ECOM was $169 million pre-tax for the nine months ended September 2003 and $218 million pre-tax for the full year. Under Texas regulations, companies could record ECOM earnings, based on a wholesale capacity auction true-up, from Jan. 1, 2002, through Dec. 31, 2003. GAAP and ongoing earnings per share for third-quarter 2004 are based on an average of approximately 396 million shares outstanding, compared to an average of approximately 395 million shares outstanding for the same period in 2003. GAAP and ongoing earnings per share for the year-to-date period are based on an average of 396 million shares in 2004, compared to an average of 382 million shares in 2003. For the 2004 year-to-date period, dilution for GAAP earnings is $0.09 per share and dilution for ongoing earnings is $0.07 per share. A full reconciliation of GAAP earnings to ongoing earnings for each period is included in tables at the end of this news release. EARNINGS GUIDANCE AEP affirmed its previous 2004 ongoing earnings guidance range of between $2.20 and $2.40 per share. In providing ongoing earnings guidance, there are differences between 2004 ongoing earnings and 2004 GAAP earnings because of the classification of UK operations and Louisiana Intrastate Gas (LIG) as discontinued and the impacts of disposals of UK operations, LIG and other non- core assets. At this time, AEP management is not able to estimate the impact on GAAP earnings of the anticipated Texas true-up proceedings or the potential impact of any future changes in accounting principles. Therefore, AEP is not able at this time to provide a corresponding GAAP equivalent for 2004 earnings guidance. SUMMARY ONGOING RESULTS BY SEGMENT ($ in millions except EPS; EPS based on 395mm shares Q3 2003, 396mm in Q3 2004, 382mm in 9 mo. 2003 and 396mm in 9 mo.2004) Q3 03 Q3 04 Variance YTD 03 YTD 04 Variance Utility Operations 394 359 (35) 928 845 (83) Ongoing EPS 1.00 0.91 (0.09) 2.43 2.13 (0.30) Investments (21) (32) (11) (111) (45) 66 Ongoing EPS (0.06) (0.08) (0.02) (0.29) (0.11) 0.18 Parent Company (21) (9) 12 (39) (43) (4) Ongoing EPS (0.05) (0.03) 0.02 (0.10) (0.11) (0.01) Ongoing Earnings 352 318 (34) 778 757 (21) Ongoing EPS $0.89 $0.80 ($0.09) $2.04 $1.91 ($0.13) "We accomplished much in the third quarter and recorded solid earnings for the period," said Michael G. Morris, AEP's chairman, president and chief executive officer. "We completed the divestiture of a number of assets that did not fit our business model, including the generation in the United Kingdom. Our domestic utility assets, the core of our ongoing business strategy, performed well. When you factor ECOM out of the equation, our utilities improved earnings from the prior period despite milder weather conditions. "We continue to see growth in industrial demand, evidence of an ongoing economic recovery in areas we serve," Morris said. "I consider that to be a further indication that our decision to focus our strategy on our utility operations and assets has us well positioned for the future." The decline in the Investments segment performance from third-quarter 2003 is primarily attributed to fluctuations in the value, for accounting purposes, of natural gas in storage. This will be reported as income in future periods as the gas is withdrawn from storage. The $12 million reduction in Parent Company expenses in the quarter compared to the prior period is primarily the result of lower interest and other expenses. ONGOING RESULTS FROM UTILITY OPERATIONS ($ in millions except EPS; EPS based on 395mm shares Q3 2003, 396mm in Q3 2004, 382mm in 9 mo. 2003 and 396mm in 9 mo.2004) Q3 03 Q3 04 Variance YTD 03 YTD 04 Variance Regulated Integrated Utilities 800 815 15 2,183 2,315 132 Ohio Companies 545 516 (29) 1,505 1,497 (8) Texas Wires 177 128 (49) 508 334 (174) Texas Supply/REP 99 89 (10) 325 273 (52) Off-System Sales 157 131 (26) 379 413 34 Other Wholesale Transactions 1 -- (1) (4) 13 17 Transmission Revenue - 3rd Party 121 125 4 350 368 18 Other Operating Revenue 91 88 (3) 270 247 (23) Total Gross Margin 1,991 1,892 (99) 5,516 5,460 (56) Operations & Maintenance (717) (720) (3) (2,138) (2,276) (138) Depreciation & Amortization (317) (322) (5) (927) (940) (13) Taxes Other Than Income Taxes (182) (175) 7 (521) (530) (9) Interest Expense & Preferred Dividend (168) (151) 17 (499) (471) 28 Other Income & Deductions -- 7 7 7 32 25 Income Taxes (213) (172) 41 (510) (430) 80 Total Utility Operations 394 359 (35) 928 845 (83) Ongoing EPS $1.00 $0.91 ($0.09) $2.43 $2.13 ($0.30) Reduced expenses, increased industrial demand for electricity and growth in the number of residential and commercial customers helped AEP partially offset the absence of ECOM in third-quarter 2004. Mild summer weather reduced residential and commercial demand for power in many areas served by AEP when compared with the same period last year. AEP's Regulated Integrated Utilities increased gross margin in the quarter, even though residential and commercial sales were down slightly because of weather. Industrial sales increased 6 percent from the prior period. The reduction in gross margin in the quarter from AEP's Ohio Companies reflects the mild summer weather, which contributed to a 5 percent reduction in retail sales to residential and commercial customers, and higher fuel costs in a state that has frozen rates. Industrial sales increased 5 percent from the prior period. The loss of ECOM from Texas Wires gross margin in the quarter was partially offset by higher residential usage and residential and commercial customer growth in AEP's Texas Central Company (TCC). The decrease in gross margin in the quarter from Texas Supply is primarily attributed to the divestiture of TCC generation to comply with Texas stranded cost recovery regulations. This resulted in higher purchased power costs to fulfill contractual commitments. Reduced gross margins from Off-System Sales are primarily the result of less favorable optimization activities in the current period. Utility expenses in the quarter were $64 million lower than in the same period last year, primarily because of lower tax expenses in the quarter and reduced interest expenses as a result of refinancings and paying down debt. Operations & Maintenance and Depreciation & Amortization expenses were relatively flat period to period. ONGOING RESULTS FROM INVESTMENTS ($ in millions except EPS; EPS based on 395mm shares Q3 2003, 396mm in Q3 2004, 382mm in 9 mo. 2003 and 396mm in 9 mo.2004) Q3 03 Q3 04 Variance YTD 03 YTD 04 Variance AEPES, inc. Gas HoldCo (HPL) (21) (28) (7) (65) (41) 24 MEMCO 3 1 (2) 4 6 2 IPPs and Wind Farms 4 1 (3) (6) 7 13 AEP Resources - Other (5) (5) -- (23) (6) 17 Other (2) (1) 1 (21) (11) 10 Total Investments (21) (32) (11) (111) (45) 66 Ongoing EPS ($0.06) ($0.08) ($0.02) ($0.29) ($0.11) $0.18 Improved pipeline margins and lower operating expenses for AEP Energy Services were more than offset by a $16 million after-tax reduction in value, for accounting purposes, of natural gas in storage, which will be reported as income in future periods as the gas is withdrawn from storage. Two factors decreased third-quarter earnings from the MEMCO barge system: Higher diesel fuel costs in the quarter when compared to the prior period, and reduced August barge freight sales attributed to the U.S. Corps of Engineers' closure of the McAlpine Lock on the Ohio River for repairs. The decline in earnings from Independent Power Plants (IPPs) and Wind Farms reflects the sale of IPPs in Colorado and Florida that contributed $2.8 million to third-quarter 2003 earnings. ADDITIONAL INFORMATION ON WEB SITE AEP's balance sheet and a cash flow table are available on AEP's web site at http://www.aep.com/go/earnings . WEBCAST American Electric Power's quarterly conference call with financial analysts will be broadcast live over the Internet at 9 a.m. EDT today at http://www.aep.com/go/webcasts or http://phx.corporate-ir.net/phoenix. zhtml?p=irol-eventDetails&c=105011&eventID=952103 . The call will be archived on http://www.aep.com/go/webcasts for use by those unable to listen during the live webcast. Minimum requirements to listen to broadcast: The Windows Media Player software, free from http://windowsmedia.com/download , and at least a 56Kbps connection to the Internet. American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation's largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP's 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio. AEP's GAAP earnings are prepared in accordance with accounting principles generally accepted in the United States and represent the company's earnings as reported to the Securities and Exchange Commission. AEP's management believes that the company's ongoing earnings, or GAAP earnings adjusted for certain items as described in the news release and charts, provide a more meaningful representation of the company's performance. AEP uses ongoing earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings outlook and results. The company also uses ongoing earnings data internally to measure performance against budget and to report to AEP's board of directors. This report made by AEP and certain of its subsidiaries contains forward- looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels; availability of generating capacity and the performance of AEP's generating plants; the ability to recover regulatory assets and stranded costs in connection with deregulation; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for new investments and environmental compliance); oversight and/or investigation of the energy sector or its participants; resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP's ability to reduce its operation and maintenance costs; the success of disposing of investments that no longer match AEP's business model; AEP's ability to sell assets at acceptable prices and on other acceptable terms; international and country-specific developments affecting foreign investments including the disposition of any foreign investments; the economic climate and growth in AEP's service territory and changes in market demand and demographic patterns; inflationary trends; AEP's ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of participants in the energy trading market; changes in the financial markets, particularly those affecting the availability of capital and AEP's ability to refinance existing debt at attractive rates; actions of rating agencies, including changes in the ratings of debt and preferred stock; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including the establishment of a regional transmission structure; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP's pension plan; prices for power that AEP generates and sells at wholesale; changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events. American Electric Power Financial Results for 3rd Quarter 2004 Actual vs 3rd Quarter 2003 Actual 2003 Actual 2004 Actual ($ millions) EPS ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 Regulated Integrated Utilities 800 815 2 Ohio Cos. 545 516 3 Texas Wires 177 128 4 Texas Supply / REP 99 89 5 Off-System Sales 157 131 6 Other Wholesale Transactions 1 - 7 Transmission Revenue - 3rd Party 121 125 8 Other Operating Revenue 91 88 9 Total Gross Margin 1,991 1,892 10 Operations & Maintenance (717) (720) 11 Depreciation & Amortization (317) (322) 12 Taxes Other than Income Taxes (182) (175) 13 Interest Exp & Preferred Dividend (168) (151) 14 Other Income & Deductions - 7 15 Income Taxes (213) (172) 16 Net Earnings Utility Operations 394 1.00 359 0.91 INVESTMENTS: 17 AEPES, inclds Gas HoldCo (HPL) (21) (28) 18 MEMCO 3 1 19 IPPs and Wind Farms 4 1 20 AEP Resources - Other (5) (5) 21 Other (2) (1) 22 Total Investments (21) (0.06) (32) (0.08) 23 Parent Company (21) (0.05) (9) (0.03) 24 ON-GOING EARNINGS 352 0.89 318 0.80 Note: For analysis purposes, certain financial statement amounts have been reclassified for this effect on earnings presentation. American Electric Power Financial Results for 3rd Quarter 2004 Actual Reconciliation of On-going and Reported Earnings 2004 Actual Utility Invest. Parent Total EPS ($ millions) On-going Earnings 359 (32) (9) 318 0.80 Dispositions: Gain from sale of IPP's - 64 - 64 0.16 Gain from sale of UK Generation - 127 - 127 0.32 Gain from sale of Southcoast Power Ltd. - 31 - 31 0.08 Loss from sale of Jefferson Island Storage Hub - (2) - (2) - Discontinued Operations: UK Discontinued Operations - (7) - (7) (0.02) LIG Discontinued Operations - (1) - (1) - Total Special Items - 212 - 212 0.54 Reported Earnings 359 180 (9) 530 1.34 Financial Results for 3rd Quarter 2003 Actual Reconciliation of On-going and Reported Earnings 2003 Actual Utility Invest. Parent Total EPS ($ millions) On-going Earnings 394 (21) (21) 352 0.89 Impairments: IPP Impairment - (45) - (45) (0.11) Discontinued Operations: UK Discontinued Operations - (52) - (52) (0.13) LIG Discontinued Operations - 2 - 2 - Total Special Items - (95) - (95) (0.24) Reported Earnings 394 (116) (21) 257 0.65 American Electric Power Summary of Selected Sales Data For Domestic Operations (Data based on preliminary, unaudited results) 3 Months Ended September 30, 2003 2004 Change ENERGY SUMMARY Retail - Domestic Electric (in millions of kWh): Residential 12,578 12,002 -4.6% Commercial 10,267 10,070 -1.9% Industrial 12,309 13,052 6.0% Miscellaneous 827 857 3.6% Total Domestic Retail (Exclds AEP C&I, ME SWEPCo, & Tx POLR) (a) 35,981 35,981 0.0% AEP C&I, Mutual Energy SWEPCo, & Tx POLR 725 316 -56.4% Total Domestic Retail 36,706 36,297 -1.1% Wholesale - Domestic Electric (in millions of kWh): 19,669 23,613 20.1% EAST REGION WEATHER SUMMARY (in degree days): Actual - Heating (b) 12 1 -91.7% - Cooling (c) 592 553 -6.6% Normal - Heating (b) 7 -85.7% * - Cooling (c) 679 -18.6% * PSO/SWEPCo WEATHER SUMMARY (in degree days): Actual - Heating (b) 0 0 0.0% - Cooling (c) 1,390 1,178 -15.3% Normal - Heating (b) 2 -100.0% * - Cooling (c) 1,398 -15.7% * * 2004 Actual vs. Normal (a) The energy summary represents load supplied by AEP. The AEP C&I load has been segregated to clarify the year-to-year comparison. Delivery of energy by Texas Wires supplied by others is not included. (b) Heating Degree Days temperature base is 55 degrees (c) Cooling Degree Days temperature base is 65 degrees American Electric Power Financial Results for September 2004 YTD Actual vs September 2003 YTD Actual 2003 Actual 2004 Actual ($ millions) EPS ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 Regulated Integrated Utilities 2,183 2,315 2 Ohio Cos. 1,505 1,497 3 Texas Wires 508 334 4 Texas Supply / REP 325 273 5 Off-System Sales 379 413 6 Other Wholesale Transactions (4) 13 7 Transmission Revenue - 3rd Party 350 368 8 Other Operating Revenue 270 247 9 Total Gross Margin 5,516 5,460 10 Operations & Maintenance (2,138) (2,276) 11 Depreciation & Amortization (927) (940) 12 Taxes Other than Income Taxes (521) (530) 13 Interest Exp & Preferred Dividend (499) (471) 14 Other Income & Deductions 7 32 15 Income Taxes (510) (430) 16 Net Earnings Utility Operations 928 2.43 845 2.13 INVESTMENTS: 17 AEPES, inclds Gas HoldCo (HPL & LIG) (65) (41) 18 MEMCO 4 6 19 IPPs and Wind Farms (6) 7 20 AEP Resources - Other (23) (6) 21 Other (21) (11) 22 Total Investments (111) (0.29) (45) (0.11) 23 Parent Company (39) (0.10) (43) (0.11) 24 ON-GOING EARNINGS 778 2.04 757 1.91 Note: For analysis purposes, certain financial statement amounts have been reclassified for this effect on earnings presentation. American Electric Power Financial Results for YTD September 2004 Actual Reconciliation of On-going and Reported Earnings 2004 Actual Utility Invest. Parent Total EPS ($ millions) On-going Earnings 845 (45) (43) 757 1.91 Dispositions: Gain from sale of Nanyang General Light Electric Co. - 6 - 6 0.02 Gain from sale of IPP's - 64 - 64 0.16 Gain from sale of UK Generation - 127 - 127 0.32 Gain from sale of Southcoast Power Ltd. - 31 - 31 0.08 Loss from sale of Jefferson Island Storage Hub - (2) - (2) (0.01) Discontinued Operations: UK Discontinued Operations - (71) - (71) (0.18) LIG Discontinued Operations - - - - - Total Special Items - 155 - 155 0.39 Reported Earnings 845 110 (43) 912 2.30 Financial Results for YTD September 2003 Actual Reconciliation of On-going and Reported Earnings 2003 Actual Utility Invest. Parent Total EPS ($ millions) On-going Earnings 928 (111) (39) 778 2.04 Changes in Accounting Principles: SFAS 143 Asset Retirement Obligation 249 (7) - 242 0.63 Cessation of EITF 98-10 re: MTM accounting (13) (36) - (49) (0.13) Impairments and Dispositions: Adjustment to South Coast Impairment - 6 - 6 0.02 Net Proceeds from Sale of Mutual Energy (back office operations) - 26 - 26 0.07 Adjustment to sale of water heater rental program (3) - - (3) (0.01) IPP Impairment - (45) - (45) (0.12) Discontinued Operations: UK Discontinued Operations - (89) - (89) (0.24) LIG Discontinued Operations - 6 - 6 0.02 Total Special Items 233 (139) - 94 0.24 Reported Earnings 1,161 (250) (39) 872 2.28 American Electric Power Summary of Selected Sales Data For Domestic Operations (Data based on preliminary, unaudited results) 9 Months Ended September 30, 2003 2004 Change ENERGY SUMMARY Retail - Domestic Electric (in millions of kWh): Residential 34,658 35,169 1.5% Commercial 27,834 28,240 1.5% Industrial 36,764 38,227 4.0% Miscellaneous 2,251 2,406 6.9% Total Domestic Retail (Exclds AEP C&I, ME SWEPCo, & Tx POLR) (a) 101,507 104,042 2.5% AEP C&I, Mutual Energy SWEPCo, & Tx POLR 2,264 802 -64.6% Total Domestic Retail 103,771 104,844 1.0% Wholesale - Domestic Electric (in millions of kWh): 56,385 62,838 11.4% EAST REGION WEATHER SUMMARY (in degree days): Actual - Heating (b) 2,181 2,032 -6.8% - Cooling (c) 750 869 15.9% Normal - Heating (b) 1,993 2.0% * - Cooling (c) 960 -9.5% * PSO/SWEPCo WEATHER SUMMARY (in degree days): Actual - Heating (b) 1,074 913 -15.0% - Cooling (c) 2,034 1,867 -8.2% Normal - Heating (b) 1,013 -9.9% * - Cooling (c) 2,058 -9.3% * * 2004 Actual vs. Normal (a) The energy summary represents load supplied by AEP. The AEP C&I load has been segregated to clarify the year-to-year comparison. Delivery of energy by Texas Wires supplied by others is not included. (b) Heating Degree Days temperature base is 55 degrees (c) Cooling Degree Days temperature base is 65 degrees SOURCE American Electric Power -0- 10/21/2004 /CONTACT: Media, Melissa McHenry, Manager, Corporate Media Relations, +1-614/-716-1120, or Analysts, Julie Sloat, Vice President, Investor Relations, +1-614-716-2885, both of American Electric Power/ /Company News On-Call: http://www.prnewswire.com/comp/042050.html / /Web site: http://www.aep.com http://www.aep.com/go/earnings http://www.aep.com/go/webcasts / (AEP) CO: American Electric Power ST: Ohio IN: OIL UTI SU: ERN ERP CCA -----END PRIVACY-ENHANCED MESSAGE-----