EX-99.1 2 v121422_ex99-1.htm
 
ANALYSTS CONTACT:
Pat D. Hemlepp
Bette Jo Rozsa
Managing Director, Investor Relations
614/716-1620
614/716-2840
 
FOR IMMEDIATE RELEASE
 
AEP REPORTS 2008 SECOND-QUARTER EARNINGS
 
 
·
2008 second-quarter earnings $0.70 per share GAAP and ongoing
 
·
Earnings improved over prior period despite milder weather in eastern service territories, impact of flooding on barge operations
 
·
Wholesale activities, utility rate increases key contributors in quarter
 
·
AEP reaffirms 2008 ongoing guidance range of between $3.10 and $3.30 per share
 
 
AMERICAN ELECTRIC POWER
Preliminary, unaudited results
 
   
2nd quarter ended June 30
  
6 months ended June 30
  
   
2007
  
2008
  
Variance
  
2007
  
2008
  
Variance
  
Revenue ($ in billions)
    
3.1
   
3.5
   
0.4
   
6.3
   
7.0
   
0.7
 
Earnings ($ in millions):
                                      
GAAP
    
180
   
281
   
101
   
451
   
854
   
403
 
Ongoing
    
257
   
280
   
23
   
528
   
690
   
162
 
EPS ($):
                                      
GAAP
    
0.45
   
0.70
   
0.25
   
1.13
   
2.13
   
1.00
 
Ongoing
    
0.64
   
0.70
   
0.06
   
1.33
   
1.72
   
0.39
 

EPS based on 399mm shares in Q2 2007, 402mm in Q2 2008, 398mm in 6 mo. 2007 and 401mm in 6 mo. 2008

 
COLUMBUS, Ohio, July 31, 2008 – American Electric Power (NYSE: AEP) today reported 2008 second-quarter earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $281 million, or $0.70 per share, compared with $180 million, or $0.45 per share, for second-quarter 2007. Ongoing earnings (earnings excluding special items) for second-quarter 2008 were $280 million, or $0.70 per share, compared with $257 million, or $0.64 per share, for second-quarter 2007.
 
GAAP earnings for second-quarter 2008 were $1 million higher than ongoing earnings, primarily because of an adjustment to discontinued operations in the United Kingdom. A full reconciliation of GAAP earnings to ongoing earnings for the quarter and year to date is included in tables at the end of this news release.
 
“Our ongoing earnings for the second quarter were better than in the same period last year, even with milder weather in our eastern states and high water on the Ohio and Mississippi rivers that made operations difficult for our MEMCO barges,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “Improved results from our activities in wholesale markets - from our Generation and Marketing unit and our traditional off-system sales of power - contributed to our earnings improvement, as did our continued success in regulatory efforts to adjust utility rates to reflect the increased costs of providing service to our customers.”

1

EARNINGS GUIDANCE
 
AEP reaffirmed its ongoing earnings guidance range for 2008 of between $3.10 and $3.30 per share. In providing ongoing earnings guidance, there could be differences between ongoing earnings and GAAP earnings for matters such as, but not limited to, divestitures or changes in accounting principles. AEP management is not able to estimate the impact, if any, on GAAP earnings of these items. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.
 
SUMMARY ONGOING RESULTS BY SEGMENT
$ in millions except EPS
 
   
Q2 07
  
Q2 08
  
Variance
  
6 mo. 07
  
6 mo. 08
  
Variance
  
Utility Operations
    
238
   
263
   
25
   
491
   
673
   
182
 
Ongoing EPS
    
0.60
   
0.66
   
0.06
   
1.24
   
1.67
   
0.43
 
MEMCO
    
7
   
3
   
(4
)
  
22
   
10
   
(12
)
Ongoing EPS
    
0.02
   
0.01
   
(0.01
)
  
0.06
   
0.03
   
(0.03
)
Generation and Marketing
    
15
   
26
   
11
   
14
   
27
   
13
 
Ongoing EPS
    
0.03
   
0.06
   
0.03
   
0.03
   
0.07
   
0.04
 
All Other
    
(3
)
  
(12
)
  
(9
)
  
1
   
(20
)
  
(21
)
Ongoing EPS
    
(0.01
)
  
(0.03
)
  
(0.02
)
  
0.00
   
(0.05
)
  
(0.05
)
Ongoing Earnings
    
257
   
280
   
23
   
528
   
690
   
162
 
Ongoing EPS
    
0.64
   
0.70
   
0.06
   
1.33
   
1.72
   
0.39
 

EPS based on 399mm shares in Q2 2007, 402mm in Q2 2008, 398mm in 6 mo. 2007 and 401mm in 6 mo. 2008
 
Ongoing earnings from Utility Operations increased by $25 million during second-quarter 2008 compared with the second quarter of 2007. Increased rates from retail and municipal and cooperative customers and higher gross margins from off-system sales were somewhat offset by higher expenses, including for fuel, than those recorded in the same period in 2007.
 
AEP’s MEMCO barge operations reported lower ongoing earnings than in the same period in 2007 because of continued high water conditions from flooding on the Ohio and Mississippi rivers and reduced northbound loadings. Operating costs during the current quarter were higher because sustained high-water conditions reduced tow sizes, restricted operating hours and increased fuel consumption. A reduction in imports through the Gulf of Mexico, a result of the slowing United States economy and weak U.S. dollar, continued to depress northbound loadings.
 
Favorable marketing contracts, higher gross margins at AEP’s Oklaunion power plant in Texas and improved earnings from AEP’s wind farms increased ongoing earnings for Generation and Marketing in the quarter when compared with the prior period. Generation and Marketing includes AEP’s non-regulated generating, marketing and risk management activities, primarily in the Electric Reliability Council of Texas (ERCOT) area.

2

All Other, which includes the parent company and other investments, was lower for the quarter when compared with the prior period because of higher interest expense from new hybrid debt and commercial paper at the parent and lower interest income because of a decline in investment balances.
 
ONGOING RESULTS FROM UTILITY OPERATIONS
$ in millions except EPS
 
   
Q2 07
  
Q2 08
  
Variance
  
6 mo. 07
  
6 mo. 08
  
Variance
  
East Regulated Integrated Utilities
    
453
   
528
   
75
   
1,057
   
1,122
   
65
 
Ohio Companies
    
610
   
551
   
(59
)
  
1,213
   
1,247
   
34
 
West Regulated Integrated Utilities
    
229
   
257
   
28
   
429
   
480
   
51
 
Texas Wires
    
131
   
134
   
3
   
244
   
256
   
12
 
Off-System Sales
    
203
   
243
   
40
   
384
   
464
   
80
 
Transmission Revenue - 3rd Party
    
71
   
82
   
11
   
143
   
162
   
19
 
Other Operating Revenue
    
148
   
144
   
(4
)
  
289
   
289
   
0
 
Utility Gross Margin
    
1,845
   
1,939
   
94
   
3,759
   
4,020
   
261
 
Operations & Maintenance
    
(770
)
  
(840
)
  
(70
)
  
(1,598
)
  
(1,587
)
  
11
 
Depreciation & Amortization
    
(365
)
  
(365
)
  
0
   
(748
)
  
(720
)
  
28
 
Taxes Other Than Income Taxes
    
(187
)
  
(188
)
  
(1
)
  
(371
)
  
(382
)
  
(11
)
Interest Expense & Preferred Dividend
    
(207
)
  
(218
)
  
(11
)
  
(386
)
  
(428
)
  
(42
)
Other Income & Deductions
    
27
   
49
   
22
   
66
   
91
   
25
 
Income Taxes
    
(105
)
  
(114
)
  
(9
)
  
(231
)
  
(321
)
  
(90
)
Utility Operations Ongoing Earnings
    
238
   
263
   
25
   
491
   
673
   
182
 
Ongoing EPS
    
0.60
   
0.66
   
0.06
   
1.24
   
1.67
   
0.43
 

EPS based on 399mm shares in Q2 2007, 402mm in Q2 2008, 398mm in 6 mo. 2007 and 401mm in 6 mo. 2008
 
Retail Sales – Results for second-quarter 2008 were higher than in the same period in 2007, primarily because of the impact of rate changes for the Ohio Companies and for AEP’s utilities in Virginia, West Virginia, Oklahoma and Texas. Weather was milder than last year and reduced margins by $20 million. In AEP’s eastern territory, heating degree-days in the second quarter were 22 percent below normal and 39 percent lower than in the prior period; cooling degree-days in the second quarter were 2 percent below normal and 26 percent lower than in the prior period. In AEP’s western territory, cooling degree-days in the second quarter were 3 percent above normal and 8 percent higher than in the prior period.
 
Off-System Sales – Gross margins from Off-System Sales for second-quarter 2008 were $40 million higher than those in second-quarter 2007, primarily because of higher power prices and higher volumes.
 
Transmission Revenues – Transmission Revenues for second-quarter 2008 increased $11 million from the same period in 2007, primarily from AEP’s transmission assets in the Southwest Power Pool and ERCOT regions.
 
Operations & Maintenance Expense – Operations & Maintenance Expense for the quarter increased $70 million from the same period last year, primarily because of increased spending across all business functions for maintenance and higher general expenses primarily related to employee benefits.

3

Depreciation & Amortization – Depreciation & Amortization for the quarter was essentially flat with the same period in 2007. Lower regulator-approved depreciation rates in Indiana, Michigan, Oklahoma and Texas and lower Ohio regulatory asset amortization in the quarter were offset by higher depreciable property balances and prior-year adjustments related to the 2007 Virginia base rate case.
 
Interest Expense & Preferred Dividends – The increase in Interest Expense for second-quarter 2008 is primarily because of increased long-term debt and higher interest rates on variable-rate debt.
 
Other Income & Deductions – Other Income & Deductions increased in second-quarter 2008, primarily because of interest income related to a claim for a federal tax refund and higher carrying-cost income.
 
WEBCAST
 
American Electric Power’s quarterly conference call with financial analysts will be broadcast live over the Internet at 10 a.m. EDT today at http://www.aep.com/go/webcasts. The webcast will include audio of the conference call and visuals of charts and graphics referred to by AEP management during the call. The charts and graphics will be available for download at http://www.aep.com/go/webcasts .
 
The call will be archived on http://www.aep.com/go/webcasts for use by those unable to listen during the live webcast. Archived calls also are available as podcasts.
 
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 is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.

4
—
AEP’s 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 American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the registrants 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 and the creditworthiness and performance of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity (including the company’s ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are canceled) through applicable rate cases or competitive rates; new legislation, litigation and government regulation, including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance); resolution of litigation (including disputes arising from the bankruptcy of Enron Corp. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impairing AEP’s ability to refinance existing debt at attractive rates; 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 of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities; changes in utility regulation, including the implementation of the recently passed utility law in Ohio and the allocation of costs within regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the impact of volatility in the capital markets on the value of the investments held by AEP’s pension, other postretirement benefit plans and nuclear decommissioning trust; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.

5

American Electric Power
Financial Results for 2nd Quarter 2008 Actual vs 2nd Quarter 2007 Actual
 
       
2007 Actual
  
2008 Actual
  
       
($ millions)
  
EPS
  
($ millions)
  
EPS
  
                       
  UTILITY OPERATIONS:                          
 
Gross Margin:
                          
1
  
East Regulated Integrated Utilities
    
453
         
528
       
2
  
Ohio Companies
    
610
         
551
       
3
  
West Regulated Integrated Utilities
    
229
         
257
       
4
  
Texas Wires
    
131
         
134
       
5
  
Off-System Sales
    
203
         
243
       
6
  
Net Transmission Revenue - 3rd Party
    
71
         
82
       
7
  
Other Operating Revenue
    
148
         
144
       
8
  
Utility Gross Margin
   
1,845
         
1,939
       
                               
9
  
Operations & Maintenance
    
(770
)
        
(840
)
      
10
  
Depreciation & Amortization
    
(365
)
        
(365
)
      
11
  
Taxes Other than Income Taxes
    
(187
)
        
(188
)
      
12
  
Interest Exp & Preferred Dividend
    
(207
)
        
(218
)
      
13
  
Other Income & Deductions
    
27
         
49
       
14
  
Income Taxes
    
(105
)
        
(114
)
      
15
  
Utility Operations On-Going Earnings
    
238
   
0.60
   
263
   
0.66
 
                             
  NON-UTILITY OPERATIONS:                          
16
  
MEMCO
    
7
   
0.02
   
3
   
0.01
 
17
  
Generation & Marketing
    
15
   
0.03
   
26
   
0.06
 
                               
18
  
Parent & Other On-Going Earnings
    
(3
)
  
(0.01
)
  
(12
)
  
(0.03
)
                               
19
  
ON-GOING EARNINGS
    
257
   
0.64
   
280
   
0.70
 
 
Note:
For analysis purposes, certain financial statement amounts have been reclassified for this effect on earnings presentation.
 
6

American Electric Power

Financial Results for the 2nd Quarter 2008
Reconciliation of On-going to Reported Earnings

 
 
2008
 
 
 
Utility
 
MEMCO
 
Generation
and
Marketing
 
Parent & All
Other
 
Total
 
EPS
 
   
($ millions)
      
On-going Earnings
    
263
   
3
   
26
   
(12
)
  
280
 
$
0.70
  
                                       
Dispositions:
                                      
Gain on Sale of UK Operations
   
-
   
-
   
-
   
1
   
1
 
$
-
  
Total Special Items
    
-
   
-
   
-
   
1
   
1
 
$
-
  
Reported Earnings
    
263
   
3
   
26
   
(11
)
  
281
 
$
0.70
  

Financial Results for the 2nd Quarter 2007
Reconciliation of On-going to Reported Earnings

   
2007
  
 
 
Utility
 
MEMCO
 
Generation
and
Marketing
 
Parent & All
Other
 
Total
 
EPS
 
   
($ millions)
      
                           
On-going Earnings
    
238
   
7
   
15
   
(3
)
  
257
 
$
0.64
  
                                       
Dispositions:
                                      
Gain on Sale of UK Operations
    
-
   
-
   
-
   
2
   
2
 
$
0.01
  
                                       
Other
                                      
Virginia Re-Regulation SFAS 71
    
(79
)
  
-
   
-
   
-
   
(79
)
  
(0.20
)
Total Special Items
    
(79
)
  
-
   
-
   
2
   
(77
)
$
(0.19
)
Reported Earnings
    
159
   
7
   
15
   
(1
)
  
180
 
$
0.45
  
 
7
 

American Electric Power
Summary of Selected Sales Data
For Domestic Operations
(Data based on preliminary, unaudited results)

   
3 Months Ended June 30,
  
   
2007
  
2008
  
Change
  
               
ENERGY & DELIVERY SUMMARY
                    
Retail - Domestic Electric (in millions of kWh):
                    
Residential
    
10,127
    
9,829
    
-2.9
%
Commercial
    
10,227
    
9,909
    
-3.1
%
Industrial
    
14,848
    
15,060
    
1.4
%
Miscellaneous
    
632
    
639
    
1.1
%
Total Domestic Retail (a)
    
35,834
    
35,437
    
-1.1
%
                     
Wholesale - Domestic Electric (in millions of kWh): (b)
    
9,376
    
10,932
    
16.6
%
                     
Texas Wires Delivery (in millions of kWh):
    
6,746
    
7,132
    
5.7
%
                     
EAST REGION WEATHER SUMMARY (in degree days):
                    
Actual    - Heating (c)
    
222
    
136
    
-38.7
%
- Cooling (d)
    
367
    
272
    
-25.9
%
Normal   - Heating (c)
          
175
    
-22.3
%*
- Cooling (d)
          
278
    
-2.2
%*
                     
PSO/SWEPCo WEATHER SUMMARY (in degree days):
                        
Actual    - Heating (c)
    
92
    
40
    
-56.5
%
- Cooling (d)
    
622
    
675
    
8.5
%
Normal   - Heating (c)
          
35
    
14.3
%*
- Cooling (d)
          
652
    
3.5
%*

* 2008 Actual vs. Normal

(a)
The energy summary represents load supplied by AEP. Delivery of energy by Texas Wires supplied by others is not included.

(b)
Includes Off-System Sales, Texas Supply, Municipalities and Cooperatives, Unit Power, and Other Wholesale Customers.

(c)
Heating Degree Days temperature base is 55 degrees

(d)
Cooling Degree Days temperature base is 65 degrees

8

American Electric Power
Financial Results for YTD June 2008 Actual vs YTD June 2007 Actual

       
2007 Actual
  
2008 Actual
  
       
($ millions)
  
EPS
  
($ millions)
  
EPS
  
                       
  UTILITY OPERATIONS:                             
 
Gross Margin:
                          
1
  
East Regulated Integrated Utilities
    
1,057
          
1,122
          
2
  
Ohio Companies
    
1,213
          
1,247
        
3
  
West Regulated Integrated Utilities
    
429
          
480
        
4
  
Texas Wires
    
244
          
256
        
5
  
Off-System Sales
    
384
          
464
        
6
  
Net Transmission Revenue - 3rd Party
    
143
          
162
        
7
  
Other Operating Revenue
    
289
          
289
        
8
  
Utility Gross Margin
   
3,759
          
4,020
        
                             
9
  
Operations & Maintenance
    
(1,598
)
        
(1,587
)
      
10
  
Depreciation & Amortization
    
(748
)
        
(720
)
      
11
  
Taxes Other than Income Taxes
    
(371
)
        
(382
)
      
12
  
Interest Exp & Preferred Dividend
    
(386
)
        
(428
)
      
13
  
Other Income & Deductions
    
66
          
91
        
14
  
Income Taxes
    
(231
)
        
(321
)
      
15
  
Utility Operations On-Going Earnings
    
491
    
1.24
    
673
    
1.67
  
                             
  NON-UTILITY OPERATIONS:                          
16
  
MEMCO
    
22
    
0.06
    
10
    
0.03
  
17
  
Generation & Marketing
    
14
    
0.03
    
27
    
0.07
  
                             
18
  
Parent & Other On-Going Earnings
    
1
    
-
    
(20
)
  
(0.05
)
                             
19
  
ON-GOING EARNINGS
    
528
    
1.33
    
690
    
1.72
  

Note:  For analysis purposes, certain financial statement amounts have been reclassified for this effect on earnings presentation.

9

American Electric Power

Financial Results for Year-to-Date 2008
Reconciliation of On-going to Reported Earnings

   
2008
  
   
Utility
  
MEMCO
  
Generation
and
Marketing
  
Parent & All
Other
  
Total
  
EPS
  
   
($ millions)
      
           
On-going Earnings
    
673
    
10
    
27
    
(20
)
  
690
  
$
1.72
  
                                       
Dispositions:
                                      
Tractebel Settlement
   
-
    
-
    
-
    
163
    
163
  
$
0.41
  
Gain on Sale of UK Operations
   
-
    
-
    
-
    
1
    
1
  
$
-
  
                                               
Total Special Items
    
-
    
-
    
-
    
164
    
164
  
$
0.41
  
                                       
Reported Earnings
    
673
    
10
    
27
    
144
    
854
  
$
2.13
  

Financial Results for Year-to-Date 2007
Reconciliation of On-going to Reported Earnings

   
2007
  
   
Utility
  
MEMCO
  
Generation
and
Marketing
  
Parent & All
Other
  
Total
  
EPS
  
   
($ millions)
      
                           
On-going Earnings
    
491
   
22
   
14
   
1
   
528
 
$
1.33
  
                                       
Dispositions:
                                      
Gain on Sale of UK Operations
    
-
   
-
   
-
   
2
   
2
 
$
-
  
                                       
Other
                                      
Virginia Re-Regulation SFAS 71
    
(79
)
  
-
   
-
   
-
   
(79
)
$
(0.20
)
                                               
Total Special Items
    
(79
)
  
-
   
-
   
2
   
(77
)
$
(0.20
)
                                       
Reported Earnings
    
412
   
22
   
14
   
3
   
451
 
$
1.13
  

10

American Electric Power
Summary of Selected Sales Data
For Domestic Operations
(Data based on preliminary, unaudited results)

   
6 Months Ended June 30,
  
   
2007
  
2008
  
Change
  
               
ENERGY & DELIVERY SUMMARY
                    
Retail - Domestic Electric (in millions of kWh):
                    
Residential
    
24,267
    
24,329
    
0.3
%
Commercial
    
19,586
    
19,456
    
-0.7
%
Industrial
    
28,413
    
29,410
    
3.5
%
Miscellaneous
    
1,245
    
1,248
    
0.2
%
Total Domestic Retail (a)
    
73,511
    
74,443
    
1.3
%
                     
Wholesale - Domestic Electric (in millions of kWh): (b)
    
18,154
    
22,597
    
24.5
%
                     
Texas Wires Delivery (in millions of kWh):
    
12,577
    
12,955
    
3.0
%
                     
EAST REGION WEATHER SUMMARY (in degree days):
                    
Actual   - Heating (c)
    
2,039
    
1,960
    
-3.9
%
- Cooling (d)
    
382
    
272
    
-28.8
%
Normal   - Heating (c)
          
1,943
    
0.9
%*
- Cooling (d)
          
281
    
-3.2
%*
                     
PSO/SWEPCo WEATHER SUMMARY (in degree days):
                        
Actual    - Heating (c)
    
994
    
989
    
-0.5
%
- Cooling (d)
    
678
    
700
    
3.2
%
Normal   - Heating (c)
          
966
    
2.4
%*
- Cooling (d)
          
672
    
4.2
%*

* 2008 Actual vs. Normal

(a)
The energy summary represents load supplied by AEP. Delivery of energy by Texas Wires supplied by others is not included.

(b)
Includes Off-System Sales, Texas Supply, Municipalities and Cooperatives, Unit Power, and Other Wholesale Customers.

(c)
Heating Degree Days temperature base is 55 degrees

(d)
Cooling Degree Days temperature base is 65 degrees

11