Dispositions

3 Months Ended

Mar. 31, 2016

Dispositions

DISPOSITION

The disclosures in this note apply to AEP only.

2015

AEPRO (Corporate and Other)

In October 2015, AEP signed a Purchase and Sale Agreement to sell its commercial barge transportation subsidiary, AEPRO, to a nonaffiliated party. The sale closed in November 2015. The nonaffiliated party acquired AEPRO by purchasing all of the common stock of AEP Resources, Inc., the parent company of AEPRO.  The nonaffiliated party assumed certain assets and liabilities of AEPRO, excluding the equity method investment in International Marine Terminals, LLC, pension and benefit assets and liabilities and debt obligations. Prior to the closing of the sale, AEP retired the debt obligations of AEPRO. AEP retained ownership of its captive barge fleet that delivers coal to the company’s regulated coal-fueled power plant units owned or leased by AEGCo, APCo, I&M, KPCo and WPCo.  AEP signed a contract with the nonaffiliated party to dispatch and schedule its captive barge fleet for the company’s regulated coal-fueled power plant units.  AEP also has a separate contract with the nonaffiliated party to barge coal for AGR. These agreements with the nonaffiliated party extend through the end of 2016.

Results of operations of AEPRO have been classified as discontinued operations on AEP’s statements of income for the three months ended March 31, 2015, as shown in the following table:

	Three Months Ended
	March 31, 2015
	(in millions)
Other Revenues	$	127.7
Other Operation Expense	85.0
Maintenance Expense	8.3
Depreciation and Amortization Expense	9.1
Taxes Other Than Income Taxes	4.0
Total Expenses	106.4
Other Income (Expense)	(4.4		)
Pretax Income of Discontinued Operations	16.9
Income Tax Expense	6.3
Equity Earnings of Unconsolidated Subsidiaries	(0.1		)
Total Income on Discontinued Operations as Presented on the Statements of Income	$	10.5