American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Investor Presentation (June 2012)
18 slides from American Electric Power's investor presentation, June 2012
Slide 1: Transmission Formula Rate AEP East Companies Annual Formula Rate Update
American Electric Power Company Transmission Formula Rate AEP East Companies 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) -- $65.88/MW Day – Rates effective July 1, 2011 (billed July – December 2011) -- $74.89/MW Day – Trued-up to Actual 2011 Cost Data with
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: Annual Update 2012
Annual Update 2012 • Annual Update - 2012 • Notice of Annual Filing (PDF) • Annual Update Customer Meeting Notice (DOC) • Formula Rate Update AEP Operating Companies S ummary (DOC) • PJM ATRR Formula Rate Summary (XLS) http://www.aep.com/about/codeofconduct/ • Appalachian Power Company (XLS) OASIS/T
Slide 5: 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 $2,194.98 $2,348.65 (7%) $/MW Month Schedule 12 $5,385,840 $5,890,993 (9%) Schedule 1A $.0643/MWh $.0918/MWh (30%) AEP East Zone 24,530.8 MW
Slide 6: Primary Drivers Decreasing Rate
Primary Drivers Decreasing Rate • Projected 2011 investment within 2% of actual 2011 capital spend • 4% increase in the East Zone Network Service Peak Load • Decrease in O&M Expense for 2011 6
Slide 7: Revenue Requirement (including revenue credits) used to calculate the Existing Zonal ATRR
Revenue Requirement (including revenue credits) used to calculate the Existing Zonal ATRR for PJM OATT $700,000,000 $650,000,000 $600,000,000 $550,000,000 $500,000,000 $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 2011Projected
Slide 8: Gross Plant Investment – 2011 Projected vs. 2011 Actual Average Balance
Gross Plant Investment – 2011 Projected vs. 2011 Actual Average Balance Gross Plant Investment $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0 2011Projected 2011 True-Up APCo $1,934,693,178 $1,883,354,260 I&M $1,194,357,912 $1,176,235,026 KPCo $460,203,82
Slide 9: O&M Expense Comparison
O&M Expense Comparison $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 2011Projected 2011Tr ue-Up APCo $20,081,159 $29,542,106 I&M $4,992,996 $22,990,255 KPCo $582,514 $7,053,914 KgPCo $719,637 $700,357 OPCo $105,011,557 $40,353,219 WPCo $1,031,331 $990,852
Slide 10: 2012 Projected Plant Capital Spend
2012 Projected Plant Capital Spend $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 2011 Projected 2012 Projected APCo $95,284,309 $131,598,099 I&M $31,664,202 $43,340,071 KPCo $12,429,281 $22,378,645 KgPCo $2,017,427 $3,222,427 OPCo $54,302,091 $90,052,29
Slide 11: Revenue Requirement For PJM Socialized 'Schedule 12' Investment
Revenue Requirement For PJM Socialized ‘Schedule 12’ Investment Company/ Investment In-Service RTEP Project $ Revenue Requirement $ I&M/ 8,288,332 2009 1,319,695 Twin Branch I&M/ 580,000 2012 92,584 Rockport Jefferson OPC/ 5,491,718 2009 1,057,666 Hanging Rock OPC/ 4,486,000 2012 832,082 WMoulton OP
Slide 12: Summary Comparison 2011 Projected – 2011 True-up
Summary Comparison 2011 Projected – 2011 True-up RATE BASE Line 1 REVENUE REQUIREMENT APCo I&M KPCo KgPCo OPCo WPCo AEP East OPCo's 2 2011 Projected $198,406,997 $102,001,398 $42,605,499 $2,670,047 $317,945,680 $4,982,356 $668,611,976 3 2011 True-Up $204,374,733 $116,900,686 $49,044,165 $2,490,593 $
Slide 13: Summary Comparison 2011 Projected – 2011 True-up (cont.)
Summary Comparison 2011 Projected – 2011 True-up (cont.) EXPENSES Line 1 TRANS. O & M EXPENSE APCo I&M KPCo KgPCo OPCo WPCo AEP East OPCo's 2 2011 Projected $20,081,159 $4,992,996 $582,514 $719,637 $105,011,557 $1,031,331 $132,419,194 3 2011 True-Up $29,542,106 $22,990,255 $7,053,914 $700,357 $40,35
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 APCo I&M KPCo KgPCo OPCo WPCo AEP East OPCo's 2 2011 Projected $93,732,841 $49,912,468 $22,641,847 $799,273 $84,225,711 $1,825,421 $253,137,561 3 2011 True-Up $89,384,377 $47,664,497 $22,150,288 $
Slide 15: Schedule 1A
Schedule 1A AEP Transmission Schedule 1A Revenue Requirements AEP Annual Line Revenue No. Requirement A. Schedule 1A ARR 1 Total Load Dispatch & Scheduling (Account 561) (TCOS Line 14) $35,725,537 2 Less: Load Disptach - Scheduling, System Control and Dispatch Services (321.88.b) $19,249,473 3 Less:
Slide 16: NITS True-Up
NITS True-Up FERC Case No. ER08-1329 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 @ True- Collections at
Slide 17: Actual Revenue compared to True-Up Revenue
Actual Revenue compared to True-Up Revenue 2011 Actual Revenue Collections - All AEP NITS revenue received during 2011 is allocated on ATRR share APCo I&M KPCo KgPCo OPCo WPCo TOTAL NTS Rate Days Jan-11 $15,964,393 $9,306,715 $3,848,698 $185,811 $18,507,653 $161,891 $47,975,160 65.8763 31 Feb-11 $14
Slide 18: Questions
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