American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Investor Presentation (June 2012)
16 slides from American Electric Power's investor presentation, June 2012
Slide 1: Transmission Formula Rate Annual Formula Rate Update
American Electric Power Company Transmission Formula Rate AEP Appalachian Transmission Co., Inc. AEP Indiana Michigan Transmission Co., Inc. AEP Kentucky Transmission Co., Inc. AEP Ohio Transmission Co., Inc. AEP West Virginia Transmission Co., Inc. Annual Formula Rate Update June 2012 1
Slide 2: True-up Process
True-up Process • Annual update for the Rate Year beginning July 1, 2012 through June 30, 2013 • True-up – Rates effective July 1, 2010 (billed January – June 2011) -- $0.41/MW Day – Rates effective July 1, 2011 (billed July – December 2011) -- $1.36/MW Day – Trued-up to Actual 2011 Cost Data with A
Slide 3: Regulatory Changes
Regulatory Changes • July 2011 FERC issued an order approving the internal corporate reorganization consummated on December 31, 2011 under which Columbus Southern Power Company (“CSP”) merged into Ohio Power Company (“Reorganization Transaction”). • March 2012 AEP submitted for filing amendments to
Slide 4: Status of State Regulatory Process
Status of State Regulatory Process • West Virginia Transco: Issued an order on June 5, 2012--W Va Commission would approve with certain modifications – current evaluation in process. • Appalachian Transco: Va Transco has been approved to enter into limited service agreements with AEPSC and APCo. • K
Slide 5: Annual Update 2012
Annual Update 2012 • Annual Update 2012 - AEPTCo PJM • Notice of Annual Filing (PDF) • Formula Rate Update AEP Transmission Co mpanies Summary (DOC) • http://www.aep.com/about/ • ATRR Summary of AEP Transmission Com codeofconduct/OASIS/TariffFilings/ panies Docket No. ER10-355-000, AEPTCo (XLS) FERC
Slide 6: Summary of Rates
Summary of Rates Charge July 1, 2012 July 1, 2011 Change 2011 FERC Form 1 2010 FERC Form 1 (projected plant 2012) (projected plant 2011) Point-to Point Rate $90.92 $36.75 $54.17 $/MW Month Schedule 12 $2,199,548 N/A $2,199,548 AEP East Zone 24,530.8 MW 23,492.3 MW 1,038.5MW Network Service Peak Load
Slide 7: Primary Drivers
Primary Drivers Change in Rate • Increased capital spend in Ohio • 4% increase in the East Zone Network Service Peak Load 7
Slide 8: Revenue Requirement used to calculate the Existing Zonal ATRR
Revenue Requirement used to calculate the Existing Zonal ATRR for PJM OATT TransCo's Revenue Requirement $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2011 Projected 2012 Projected Virginia $153,300 $111,736 I&M $1,222,638 $2,787,822 KPCo $117,182 $146,026 OPC
Slide 9: Gross Plant Investment – 2011 Projected vs. 2011 Actual Average Balance
Gross Plant Investment – 2011 Projected vs. 2011 Actual Average Balance Gross Plant Investment Gross Plant Investment InvestmentRequirement $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2011 Projected 2011 True-Up Virginia $0 $0 I&M $7
Slide 10: 2012 Projected Capital Spend
2012 Projected Capital Spend TransCo's Projected Plant Growth $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 2010 Projected 2011 Projected 2012 Projected APTCo $7,500,000 $0 $0 IMTCo $3,720,000 $3,128,014 $18,325,850 K
Slide 11: Revenue Requirement For PJM Socialized Schedule 12 Investment
Revenue Requirement For PJM Socialized ‘Schedule 12’ Investment Company/Project Investment In-Service RTEP Revenue $ Requirement $ I&M/ 5,231,51 2012 655,786 Jefferson 765kv 6 line OPC/ 6,809,19 2012 747,660 Lima Sterling 6 OPC/ 3,359,04 2011 386,386 Wapakoneta- 3 West Moulton 11
Slide 12: Summary Comparison 2011 Projected – 2011 True-up
Summary Comparison 2011 Projected – 2011 True-up RATE BASE Line 1 REVENUE REQUIREMENT Virginia I&M KPCo OPCo West Virginia East Transco's 2 2011 Projected $153,300 $1,222,638 $117,182 $10,020,532 $183,347 $11,696,999 3 2011 True-Up $111,993 $804,737 $138,961 $5,047,043 $121,707 $6,224,441 4 True-Up
Slide 13: Summary Comparison 2011 Projected – 2011 True-up (cont.)
Summary Comparison 2011 Projected – 2011 True-up (cont.) EXPENSES Line 1 O&M EXPENSE Virginia I&M KPCo OPCo West Virginia East Transco's 2 2011 Projected $109,685 $216,036 $93,556 $187,276 $144,210 $750,763 3 2011 True-Up $82,995 $289,312 $121,867 $1,277,242 $95,590 $1,867,006 4 True-Up Inc/(Dec) ($
Slide 14: Summary Comparison 2011 Projected – 2011 True-up (cont.)
Summary Comparison 2011 Projected – 2011 True-up (cont.) RETURN ON RATE BASE Line 1 RETURN ON RATE BASE Virginia I&M KPCo OPCo West Virginia East Transco's 2 2011 Projected $11,845 $654,815 ($2,485) $6,949,689 $8,506 $7,622,370 3 2011 True-Up $6,420 $277,546 ($2,180) $2,438,742 $4,451 $2,724,979 4 T
Slide 15: NITS True-Up
NITS True-Up FERC Case No. ER10-355 PJM AEP Formula Rate Interest Calculation on True-Up of NITS Revenue Requirement Refund Interest AEP Zone MW Excess (Under) Average of Excess Prior Quarter Rate per Part Cumulative Year by Month Billing Projected MW True-Up MW Day Revenues @ Collections at Cumulat
Slide 16: Questions
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