Commission
|
Registrants; States of Incorporation;
|
I.R.S. Employer
|
||
File Number
|
Address and Telephone Number
|
Identification Nos.
|
||
1-3525
|
AMERICAN ELECTRIC POWER COMPANY, INC. (A New York Corporation)
|
13-4922640
|
||
1-3457
|
APPALACHIAN POWER COMPANY (A Virginia Corporation)
|
54-0124790
|
||
1-3570
|
INDIANA MICHIGAN POWER COMPANY (An Indiana Corporation)
|
35-0410455
|
||
1-6543
|
OHIO POWER COMPANY (An Ohio Corporation)
|
31-4271000
|
||
0-343
|
PUBLIC SERVICE COMPANY OF OKLAHOMA (An Oklahoma Corporation)
|
73-0410895
|
||
1-3146
|
SOUTHWESTERN ELECTRIC POWER COMPANY (A Delaware Corporation)
|
72-0323455
|
||
1 Riverside Plaza, Columbus, Ohio 43215-2373
|
||||
Telephone (614) 716-1000
|
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
|
|||||
Yes
|
X
|
No
|
Indicate by check mark whether the registrants have submitted electronically and posted on their corporate websites, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).
|
|||||
Yes
|
X
|
No
|
Indicate by check mark whether American Electric Power Company, Inc. is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
|
|||||
Large accelerated filer
|
X
|
Accelerated filer
|
|||
Non-accelerated filer
|
Smaller reporting company
|
Indicate by check mark whether Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company are large accelerated filers, accelerated filers, non-accelerated filers or smaller reporting companies. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
|
|||||
Large accelerated filer
|
Accelerated filer
|
||||
Non-accelerated filer
|
X
|
Smaller reporting company
|
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).
|
|||||
Yes
|
No
|
X
|
Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company meet the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to Form 10-Q.
|
Number of shares of common stock outstanding of the registrants as of
July 25, 2013
|
|||
American Electric Power Company, Inc.
|
486,772,596
|
||
($6.50 par value)
|
|||
Appalachian Power Company
|
13,499,500
|
||
(no par value)
|
|||
Indiana Michigan Power Company
|
1,400,000
|
||
(no par value)
|
|||
Ohio Power Company
|
27,952,473
|
||
(no par value)
|
|||
Public Service Company of Oklahoma
|
9,013,000
|
||
($15 par value)
|
|||
Southwestern Electric Power Company
|
7,536,640
|
||
($18 par value)
|
Page
|
||||||||||
Number
|
||||||||||
Glossary of Terms
|
i
|
|||||||||
Forward-Looking Information
|
iv
|
|||||||||
Part I. FINANCIAL INFORMATION
|
||||||||||
Items 1, 2 and 3 - Financial Statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Quantitative and Qualitative Disclosures About Market Risk:
|
||||||||||
American Electric Power Company, Inc. and Subsidiary Companies:
|
||||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
1
|
|||||||||
Condensed Consolidated Financial Statements
|
31
|
|||||||||
Index of Condensed Notes to Condensed Consolidated Financial Statements
|
37
|
|||||||||
Appalachian Power Company and Subsidiaries:
|
||||||||||
Management’s Narrative Discussion and Analysis of Results of Operations
|
86
|
|||||||||
Condensed Consolidated Financial Statements
|
92
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
98
|
|||||||||
Indiana Michigan Power Company and Subsidiaries:
|
||||||||||
Management’s Narrative Discussion and Analysis of Results of Operations
|
100
|
|||||||||
Condensed Consolidated Financial Statements
|
105
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
111
|
|||||||||
Ohio Power Company and Subsidiary:
|
||||||||||
Management’s Narrative Discussion and Analysis of Results of Operations
|
113
|
|||||||||
Condensed Consolidated Financial Statements
|
120
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
126
|
|||||||||
Public Service Company of Oklahoma:
|
||||||||||
Management’s Narrative Discussion and Analysis of Results of Operations
|
128
|
|||||||||
Condensed Financial Statements
|
132
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
138
|
|||||||||
Southwestern Electric Power Company Consolidated:
|
||||||||||
Management’s Narrative Discussion and Analysis of Results of Operations
|
140
|
|||||||||
Condensed Consolidated Financial Statements
|
146
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
152
|
|||||||||
Index of Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries
|
153
|
|||||||||
Combined Management’s Narrative Discussion and Analysis of Registrant Subsidiaries
|
220
|
|||||||||
Controls and Procedures
|
227
|
Part II. OTHER INFORMATION
|
||||||||||
Item 1.
|
Legal Proceedings |
228
|
||||||||
Item 1A.
|
Risk Factors |
|
228
|
|||||||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds |
229
|
||||||||
Item 4.
|
Mine Safety Disclosures |
|
230
|
|||||||
Item 5.
|
Other Information |
|
230
|
|||||||
Item 6.
|
Exhibits: |
|
230
|
|||||||
Exhibit 4 | ||||||||||
Exhibit 10 | ||||||||||
Exhibit 12 | ||||||||||
Exhibit 31(a) | ||||||||||
Exhibit 31(b) | ||||||||||
Exhibit 32(a) | ||||||||||
Exhibit 32(b) | ||||||||||
Exhibit 95 | ||||||||||
Exhibit 101.INS | ||||||||||
Exhibit 101.SCH | ||||||||||
Exhibit 101.CAL | ||||||||||
Exhibit 101.DEF | ||||||||||
Exhibit 101.LAB | ||||||||||
Exhibit 101.PRE | ||||||||||
SIGNATURE
|
231
|
This combined Form 10-Q is separately filed by American Electric Power Company, Inc., Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants.
|
Term
|
Meaning
|
|
AEGCo
|
AEP Generating Company, an AEP electric utility subsidiary.
|
|
AEP or Parent
|
American Electric Power Company, Inc., an electric utility holding company.
|
|
AEP Consolidated
|
AEP and its majority owned consolidated subsidiaries and consolidated affiliates.
|
|
AEP Credit
|
AEP Credit, Inc., a consolidated variable interest entity of AEP which securitizes accounts receivable and accrued utility revenues for affiliated electric utility companies.
|
|
AEP East Companies
|
APCo, I&M, KPCo and OPCo.
|
|
AEP Energy
|
AEP Energy, Inc., a wholly-owned retail electric supplier for customers in Ohio, Illinois and other deregulated electricity markets throughout the United States. BlueStar began doing business as AEP Energy, Inc. in June 2012.
|
|
AEPGenCo
|
AEP Generation Resources Inc., a nonregulated AEP subsidiary in the Generation and Marketing segment.
|
|
AEP System
|
American Electric Power System, an integrated electric utility system, owned and operated by AEP’s electric utility subsidiaries.
|
|
AEP Transmission Holding Company
|
AEP Transmission Holding Company, LLC, a wholly-owned subsidiary of AEP.
|
|
AEPSC
|
American Electric Power Service Corporation, an AEP service subsidiary providing management and professional services to AEP and its subsidiaries.
|
|
AEPTCo
|
American Electric Power Transmission Company, a wholly-owned subsidiary of AEP Transmission Holding Company.
|
|
AFUDC
|
Allowance for Funds Used During Construction.
|
|
AOCI
|
Accumulated Other Comprehensive Income.
|
|
APCo
|
Appalachian Power Company, an AEP electric utility subsidiary.
|
|
APSC
|
Arkansas Public Service Commission.
|
|
BlueStar
|
BlueStar Energy Holdings, Inc., a wholly-owned retail electric supplier for customers in Ohio, Illinois and other deregulated electricity markets throughout the United States. BlueStar began doing business as AEP Energy, Inc. in June 2012.
|
|
CAA
|
Clean Air Act.
|
|
CLECO
|
Central Louisiana Electric Company, a nonaffiliated utility company.
|
|
CO2
|
Carbon dioxide and other greenhouse gases.
|
|
Cook Plant
|
Donald C. Cook Nuclear Plant, a two-unit, 2,191 MW nuclear plant owned by I&M.
|
|
CRES
|
Competitive Retail Electric Service.
|
|
CSPCo
|
Columbus Southern Power Company, a former AEP electric utility subsidiary that was merged into OPCo effective December 31, 2011.
|
|
CWIP
|
Construction Work in Progress.
|
|
DCC Fuel
|
DCC Fuel LLC, DCC Fuel II LLC, DCC Fuel III LLC, DCC Fuel IV LLC and DCC Fuel V LLC, consolidated variable interest entities formed for the purpose of acquiring, owning and leasing nuclear fuel to I&M.
|
|
DHLC
|
Dolet Hills Lignite Company, LLC, a wholly-owned lignite mining subsidiary of SWEPCo.
|
|
EIS
|
Energy Insurance Services, Inc., a nonaffiliated captive insurance company and consolidated variable interest entity of AEP.
|
|
ERCOT
|
Electric Reliability Council of Texas regional transmission organization.
|
|
ESP
|
Electric Security Plans, filed with the PUCO, pursuant to the Ohio Amendments.
|
|
ETT
|
Electric Transmission Texas, LLC, an equity interest joint venture between AEP and MidAmerican Energy Holdings Company Texas Transco, LLC formed to own and operate electric transmission facilities in ERCOT.
|
|
FAC
|
Fuel Adjustment Clause.
|
Term
|
Meaning | |
FASB
|
Financial Accounting Standards Board.
|
|
Federal EPA
|
United States Environmental Protection Agency.
|
|
FERC
|
Federal Energy Regulatory Commission.
|
|
FGD
|
Flue Gas Desulfurization or scrubbers.
|
|
FTR
|
Financial Transmission Right, a financial instrument that entitles the holder to receive compensation for certain congestion-related transmission charges that arise when the power grid is congested resulting in differences in locational prices.
|
|
GAAP
|
Accounting Principles Generally Accepted in the United States of America.
|
|
I&M
|
Indiana Michigan Power Company, an AEP electric utility subsidiary.
|
|
IEU
|
Industrial Energy Users-Ohio.
|
|
IGCC
|
Integrated Gasification Combined Cycle, technology that turns coal into a cleaner-burning gas.
|
|
Interconnection Agreement
|
An agreement by and among APCo, I&M, KPCo and OPCo, defining the sharing of costs and benefits associated with their respective generating plants.
|
|
IRS
|
Internal Revenue Service.
|
|
IURC
|
Indiana Utility Regulatory Commission.
|
|
KPCo
|
Kentucky Power Company, an AEP electric utility subsidiary.
|
|
KPSC
|
Kentucky Public Service Commission.
|
|
KWh
|
Kilowatthour.
|
|
LPSC
|
Louisiana Public Service Commission.
|
|
MISO
|
Midwest Independent Transmission System Operator.
|
|
MMBtu
|
Million British Thermal Units.
|
|
MPSC
|
Michigan Public Service Commission.
|
|
MTM
|
Mark-to-Market.
|
|
MW
|
Megawatt.
|
|
MWh
|
Megawatthour.
|
|
NOx
|
Nitrogen oxide.
|
|
Nonutility Money Pool
|
Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain nonutility subsidiaries.
|
|
OCC
|
Corporation Commission of the State of Oklahoma.
|
|
OPCo
|
Ohio Power Company, an AEP electric utility subsidiary.
|
|
OPEB
|
Other Postretirement Benefit Plans.
|
|
OTC
|
Over the counter.
|
|
PJM
|
Pennsylvania – New Jersey – Maryland regional transmission organization.
|
|
PM
|
Particulate Matter.
|
|
POLR
|
Provider of Last Resort revenues.
|
|
PSO
|
Public Service Company of Oklahoma, an AEP electric utility subsidiary.
|
|
PUCO
|
Public Utilities Commission of Ohio.
|
|
PUCT
|
Public Utility Commission of Texas.
|
|
Registrant Subsidiaries
|
AEP subsidiaries which are SEC registrants; APCo, I&M, OPCo, PSO and SWEPCo.
|
|
Risk Management Contracts
|
Trading and nontrading derivatives, including those derivatives designated as cash flow and fair value hedges.
|
|
Rockport Plant
|
A generating plant, consisting of two 1,300 MW coal-fired generating units near Rockport, Indiana, owned by AEGCo and I&M.
|
|
RTO
|
Regional Transmission Organization, responsible for moving electricity over large interstate areas.
|
|
Sabine
|
Sabine Mining Company, a lignite mining company that is a consolidated variable interest entity for AEP and SWEPCo.
|
|
SEC
|
U.S. Securities and Exchange Commission.
|
|
SEET
|
Significantly Excessive Earnings Test.
|
Term | Meaning | |
SIA
|
System Integration Agreement, effective June 15, 2000, provides contractual basis for coordinated planning, operation and maintenance of the power supply sources of the combined AEP.
|
|
SNF
|
Spent Nuclear Fuel.
|
|
SO2
|
Sulfur dioxide.
|
|
SPP
|
Southwest Power Pool regional transmission organization.
|
|
SSO
|
Standard service offer.
|
|
Stall Unit
|
J. Lamar Stall Unit at Arsenal Hill Plant, a 543 MW natural gas unit owned by SWEPCo.
|
|
SWEPCo
|
Southwestern Electric Power Company, an AEP electric utility subsidiary.
|
|
TCC
|
AEP Texas Central Company, an AEP electric utility subsidiary.
|
|
TNC
|
AEP Texas North Company, an AEP electric utility subsidiary.
|
|
Transition Funding
|
AEP Texas Central Transition Funding I LLC, AEP Texas Central Transition Funding II LLC and AEP Texas Central Transition Funding III LLC, wholly-owned subsidiaries of TCC and consolidated variable interest entities formed for the purpose of issuing and servicing securitization bonds related to Texas restructuring law.
|
|
Turk Plant
|
John W. Turk, Jr. Plant, a 600 MW coal-fired plant in Arkansas that is 73% owned by SWEPCo.
|
|
Utility Money Pool
|
Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain utility subsidiaries.
|
|
VIE
|
Variable Interest Entity.
|
|
Virginia SCC
|
Virginia State Corporation Commission.
|
|
WPCo
|
Wheeling Power Company, an AEP electric utility subsidiary.
|
|
WVPSC
|
Public Service Commission of West Virginia.
|
|
·
|
The economic climate, growth or contraction within and changes in market demand and demographic patterns in our service territory.
|
·
|
Inflationary or deflationary interest rate trends.
|
·
|
Volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impairing our ability to finance new capital projects and refinance existing debt at attractive rates.
|
·
|
The availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material.
|
·
|
Electric load, customer growth and the impact of retail competition, particularly in Ohio.
|
·
|
Weather conditions, including storms and drought conditions, and our ability to recover significant storm restoration costs through applicable rate mechanisms.
|
·
|
Available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters.
|
·
|
Availability of necessary generating capacity and the performance of our generating plants.
|
·
|
Our ability to recover increases in fuel and other energy costs through regulated or competitive electric rates.
|
·
|
Our ability to build or acquire generating capacity and transmission lines and facilities (including our 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 cancelled) through applicable rate cases or competitive rates.
|
·
|
New legislation, litigation and government regulation, including oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances or additional regulation of fly ash and similar combustion products that could impact the continued operation and cost recovery of our plants and related assets.
|
·
|
Evolving public perception of the risks associated with fuels used before, during and after the generation of electricity, including nuclear fuel.
|
·
|
A reduction in the federal statutory tax rate could result in an accelerated return of deferred federal income taxes to customers.
|
·
|
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.
|
·
|
Our ability to constrain operation and maintenance costs.
|
·
|
Our ability to develop and execute a strategy based on a view regarding prices of electricity and other energy-related commodities.
|
·
|
Prices and demand for power that we generate and sell at wholesale.
|
·
|
Changes in technology, particularly with respect to new, developing or alternative sources of generation.
|
·
|
Our ability to recover through rates or market prices any remaining unrecovered investment in generating units that may be retired before the end of their previously projected useful lives.
|
·
|
Volatility and changes in markets for capacity and electricity, coal and other energy-related commodities, particularly changes in the price of natural gas.
|
·
|
Changes in utility regulation, including the implementation of ESPs and the transition to market and the legal separation of generation in Ohio and the allocation of costs within regional transmission organizations, including PJM and SPP.
|
·
|
Our ability to successfully manage negotiations with stakeholders and obtain regulatory approval to terminate the Interconnection Agreement.
|
·
|
Changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energy trading market.
|
·
|
Actions of rating agencies, including changes in the ratings of our debt.
|
·
|
The impact of volatility in the capital markets on the value of the investments held by our pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact on future funding requirements.
|
·
|
Accounting pronouncements periodically issued by accounting standard-setting bodies.
|
·
|
Other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, cyber security threats and other catastrophic events.
|
The forward looking statements of AEP and its Registrant Subsidiaries speak only as of the date of this report or as of the date they are made. AEP and its Registrant Subsidiaries expressly disclaim any obligation to update any forward-looking information. For a more detailed discussion of these factors, see “Risk Factors” in Part I of the 2012 Annual Report and in Part II of this report.
|
Generating
|
|||||
Company
|
Plant Name and Unit
|
Capacity
|
|||
(in MWs)
|
|||||
APCo
|
Clinch River Plant, Unit 3
|
235
|
|||
APCo
|
Glen Lyn Plant
|
335
|
|||
APCo
|
Kanawha River Plant
|
400
|
|||
APCo/OPCo
|
Philip Sporn Plant, Units 1-4
|
600
|
|||
I&M
|
Tanners Creek Plant, Units 1-3
|
495
|
|||
KPCo
|
Big Sandy Plant, Unit 2
|
800
|
|||
OPCo
|
Kammer Plant
|
630
|
|||
OPCo
|
Muskingum River Plant, Units 1-5
|
1,440
|
|||
OPCo
|
Picway Plant
|
100
|
|||
PSO
|
Northeastern Station, Unit 4
|
470
|
|||
SWEPCo
|
Welsh Plant, Unit 2
|
528
|
|||
Total
|
6,033
|
Generating
|
|||||
Company
|
Plant Name and Unit
|
Capacity
|
|||
(in MWs)
|
|||||
APCo
|
Clinch River Plant, Units 1-2
|
470
|
|||
I&M/AEGCo/KPCo
|
Rockport Plant, Units 1-2
|
2,620
|
|||
I&M
|
Tanners Creek Plant, Unit 4
|
500
|
|||
KPCo
|
Big Sandy Plant, Unit 1
|
278
|
|||
PSO
|
Northeastern Station, Unit 3
|
460
|
|||
Total
|
4,328
|
·
|
Generation of electricity for sale to U.S. retail and wholesale customers.
|
|
·
|
Transmission and distribution of electricity through assets owned and operated by our ten utility operating companies.
|
·
|
Development, construction and operation of transmission facilities through investments in our wholly-owned transmission subsidiaries and transmission joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.
|
·
|
Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.
|
·
|
Nonregulated generation in ERCOT.
|
|
·
|
Marketing, risk management and retail activities in ERCOT, PJM and MISO.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in millions)
|
||||||||||||
Utility Operations
|
$
|
222
|
$
|
365
|
$
|
571
|
$
|
749
|
||||
Transmission Operations
|
18
|
8
|
31
|
17
|
||||||||
AEP River Operations
|
(9)
|
3
|
(11)
|
12
|
||||||||
Generation and Marketing
|
4
|
(5)
|
11
|
(6)
|
||||||||
All Other (a)
|
104
|
(8)
|
101
|
(19)
|
||||||||
Net Income
|
$
|
339
|
$
|
363
|
$
|
703
|
$
|
753
|
(a)
|
While not considered a reportable segment, All Other includes Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
|
·
|
The second quarter 2013 impairment of Muskingum River Plant, Unit 5.
|
·
|
The loss of retail customers in Ohio to various CRES providers.
|
·
|
A decrease in margins from off-system sales primarily due to lower CRES capacity revenues as a result of Reliability Pricing Model pricing effective August 2012, lower PJM capacity revenues and reduced trading and marketing margins.
|
·
|
A decrease due to OPCo's second quarter 2012 partial reversal of a 2011 fuel provision based on an April 2012 PUCO order related to the 2009 FAC audit.
|
·
|
A decrease in weather-related usage.
|
·
|
An increase in storm-related expenses during the second quarter of 2013.
|
·
|
Successful rate proceedings in our various jurisdictions.
|
·
|
A favorable U.K. Windfall Tax decision by the U.S. Supreme Court in the second quarter of 2013.
|
·
|
The deferral of Ohio capacity costs as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
·
|
The second quarter 2013 impairment of Muskingum River Plant, Unit 5.
|
·
|
The loss of retail customers in Ohio to various CRES providers.
|
·
|
A decrease in margins from off-system sales primarily due to lower CRES capacity revenues as a result of Reliability Pricing Model pricing effective August 2012, lower PJM capacity revenues and reduced trading and marketing margins.
|
·
|
An increase in plant outages during 2013.
|
·
|
A decrease in AEP River Operations' 2013 earnings due to weak demand for grain and coal and river conditions in the first quarter of 2013.
|
·
|
A decrease due to OPCo's second quarter 2012 partial reversal of a 2011 fuel provision based on an April 2012 PUCO order related to the 2009 FAC audit.
|
·
|
A first quarter 2012 reversal of an obligation to contribute to Partnership with Ohio and Ohio Growth Fund as a result of the PUCO's February 2012 rejection of the Ohio modified stipulation.
|
·
|
Successful rate proceedings in our various jurisdictions.
|
·
|
A favorable U.K. Windfall Tax decision by the U.S. Supreme Court in the second quarter of 2013.
|
·
|
The deferral of Ohio capacity costs as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
·
|
An increase in weather-related usage in the first quarter of 2013.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in millions)
|
||||||||||||
Revenues
|
$
|
3,278
|
$
|
3,258
|
$
|
6,795
|
$
|
6,643
|
||||
Fuel and Purchased Electricity
|
1,130
|
1,096
|
2,407
|
2,365
|
||||||||
Gross Margin
|
2,148
|
2,162
|
4,388
|
4,278
|
||||||||
Other Operation and Maintenance
|
806
|
770
|
1,685
|
1,525
|
||||||||
Asset Impairments and Other Related Charges
|
154
|
-
|
154
|
-
|
||||||||
Depreciation and Amortization
|
429
|
448
|
835
|
860
|
||||||||
Taxes Other Than Income Taxes
|
213
|
202
|
422
|
413
|
||||||||
Operating Income
|
546
|
742
|
1,292
|
1,480
|
||||||||
Interest and Investment Income
|
6
|
2
|
9
|
3
|
||||||||
Carrying Costs Income
|
8
|
11
|
12
|
31
|
||||||||
Allowance for Equity Funds Used During Construction
|
10
|
20
|
20
|
40
|
||||||||
Interest Expense
|
(221)
|
(224)
|
(447)
|
(441)
|
||||||||
Income Before Income Tax Expense and Equity
|
||||||||||||
Earnings
|
349
|
551
|
886
|
1,113
|
||||||||
Income Tax Expense
|
127
|
186
|
315
|
365
|
||||||||
Equity Earnings of Unconsolidated Subsidiaries
|
-
|
-
|
-
|
1
|
||||||||
Net Income
|
$
|
222
|
$
|
365
|
$
|
571
|
$
|
749
|
Summary of KWh Energy Sales for Utility Operations
|
||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in millions of KWhs)
|
||||||||||||
Retail:
|
||||||||||||
Residential
|
12,630
|
13,155
|
28,885
|
27,954
|
||||||||
Commercial
|
12,553
|
13,087
|
24,104
|
24,353
|
||||||||
Industrial
|
14,601
|
15,422
|
28,363
|
30,069
|
||||||||
Miscellaneous
|
747
|
779
|
1,455
|
1,500
|
||||||||
Total Retail (a)
|
40,531
|
42,443
|
82,807
|
83,876
|
||||||||
Wholesale
|
9,180
|
8,620
|
20,204
|
17,533
|
||||||||
Total KWhs
|
49,711
|
51,063
|
103,011
|
101,409
|
||||||||
(a) Represents energy delivered to distribution customers.
|
Summary of Heating and Cooling Degree Days for Utility Operations
|
||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in degree days)
|
||||||||||||
Eastern Region
|
||||||||||||
Actual - Heating (a)
|
167
|
118
|
1,985
|
1,379
|
||||||||
Normal - Heating (b)
|
161
|
165
|
1,880
|
1,916
|
||||||||
Actual - Cooling (c)
|
351
|
401
|
351
|
429
|
||||||||
Normal - Cooling (b)
|
306
|
300
|
310
|
303
|
||||||||
Western Region
|
||||||||||||
Actual - Heating (a)
|
54
|
1
|
606
|
348
|
||||||||
Normal - Heating (b)
|
18
|
20
|
587
|
601
|
||||||||
Actual - Cooling (d)
|
797
|
961
|
867
|
1,094
|
||||||||
Normal - Cooling (b)
|
786
|
774
|
848
|
834
|
||||||||
(a)
|
Eastern Region and Western Region heating degree days are calculated on a 55 degree temperature base.
|
|||||||||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
|||||||||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
|||||||||||
(d)
|
Western Region cooling degree days are calculated on a 65 degree temperature base for PSO/SWEPCo and a 70 degree temperature base for TCC/TNC.
|
Reconciliation of Second Quarter of 2012 to Second Quarter of 2013
|
|||||||
Net Income from Utility Operations
|
|||||||
(in millions)
|
|||||||
Second Quarter of 2012
|
$
|
365
|
|||||
Changes in Gross Margin:
|
|||||||
Retail Margins
|
7
|
||||||
Off-system Sales
|
(46)
|
||||||
Transmission Revenues
|
13
|
||||||
Other Revenues
|
12
|
||||||
Total Change in Gross Margin
|
(14)
|
||||||
Changes in Expenses and Other:
|
|||||||
Other Operation and Maintenance
|
(36)
|
||||||
Asset Impairments and Other Related Charges
|
(154)
|
||||||
Depreciation and Amortization
|
19
|
||||||
Taxes Other Than Income Taxes
|
(11)
|
||||||
Interest and Investment Income
|
4
|
||||||
Carrying Costs Income
|
(3)
|
||||||
Allowance for Equity Funds Used During Construction
|
(10)
|
||||||
Interest Expense
|
3
|
||||||
Total Change in Expenses and Other
|
(188)
|
||||||
Income Tax Expense
|
59
|
||||||
Second Quarter of 2013
|
$
|
222
|
·
|
Retail Margins increased $7 million primarily due to the following:
|
|||
·
|
Successful rate proceedings in our service territories which include:
|
|||
·
|
An $85 million rate increase for OPCo.
|
|||
·
|
A $44 million rate increase for I&M.
|
|||
·
|
A $24 million rate increase for SWEPCo.
|
|||
For the rate increases described above, $48 million of these increases relate to riders/trackers which have corresponding increases in other expense items below.
|
||||
·
|
A $26 million increase due to the deferral of consumables and purchased power as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
|||
These increases were partially offset by:
|
||||
·
|
A $66 million decrease attributable to Ohio customers switching to alternative CRES providers. This decrease in Retail Margins is partially offset by an increase in Transmission Revenues related to CRES providers detailed below.
|
|||
·
|
A $46 million increase in other variable electric generation expenses.
|
|||
·
|
A $35 million decrease due to OPCo's second quarter 2012 partial reversal of a 2011 fuel provision based on an April 2012 PUCO order related to the 2009 FAC audit.
|
|||
·
|
A $28 million decrease in weather-related usage primarily due to 12% and 17% decreases in cooling degree days in our eastern and western regions, respectively.
|
|||
·
|
Margins from Off-system Sales decreased $46 million primarily due to lower CRES capacity revenues as a result of Reliability Pricing Model pricing effective August 2012, lower PJM capacity revenues and reduced trading and marketing margins. The decrease in CRES capacity revenues is partially offset in other expense items below.
|
|||
·
|
Transmission Revenues increased $13 million primarily due to increased transmission revenues from Ohio customers who have switched to alternative CRES providers and rate increases for customers in the SPP region. The increase in transmission revenues related to CRES providers offsets a portion of the lost revenues included in Retail Margins above.
|
|||
·
|
Other Revenues increased $12 million primarily due to increases in gains on other miscellaneous sales.
|
·
|
Other Operation and Maintenance expenses increased $36 million primarily due to the following:
|
|
·
|
A $21 million increase in storm-related expenses.
|
|
·
|
A $20 million increase in plant outages.
|
|
·
|
A $19 million increase in remitted Universal Service Fund (USF) surcharge payments to the Ohio Department of Development to fund an energy assistance program for qualified Ohio customers. This increase was offset by a corresponding increase in Retail Margins.
|
|
·
|
A $12 million increase in energy efficiency programs and other expenses currently recovered dollar-for-dollar in rate recovery riders/trackers within Gross Margin.
|
|
These increases were partially offset by:
|
||
·
|
A $13 million decrease in administrative and general expenses.
|
|
·
|
A $13 million decrease due to expenses recorded in 2012 related to the 2012 sustainable cost reductions program.
|
|
·
|
A $12 million decrease due to the deferral of capacity-related costs as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
|
·
|
Asset Impairments and Other Related Charges increased by $154 million due to the second quarter 2013 impairment of Muskingum River Plant, Unit 5.
|
|
·
|
Depreciation and Amortization expenses decreased $19 million primarily due to the following:
|
|
·
|
A $26 million decrease as a result of depreciation ceasing on certain Ohio generating plants that were impaired in November 2012.
|
|
·
|
A $15 million decrease due to the deferral of capacity-related depreciation costs as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
|
These decreases were partially offset by:
|
||
·
|
An $11 million increase due to the Turk Plant being placed in service in December 2012.
|
|
·
|
Overall higher depreciable property balances.
|
|
·
|
Taxes Other Than Income Taxes increased $11 million primarily due to increased property taxes as a result of increased capital investments.
|
|
·
|
Allowance for Equity Funds Used During Construction decreased $10 million primarily due to completed construction of the Turk Plant in December 2012.
|
|
·
|
Income Tax Expense decreased $59 million primarily due to a decrease in pretax book income.
|
Reconciliation of Six Months Ended June 30, 2012 to Six Months Ended June 30, 2013
|
|||||||
Net Income from Utility Operations
|
|||||||
(in millions)
|
|||||||
Six Months Ended June 30, 2012
|
$
|
749
|
|||||
Changes in Gross Margin:
|
|||||||
Retail Margins
|
125
|
||||||
Off-system Sales
|
(75)
|
||||||
Transmission Revenues
|
35
|
||||||
Other Revenues
|
25
|
||||||
Total Change in Gross Margin
|
110
|
||||||
Changes in Expenses and Other:
|
|||||||
Other Operation and Maintenance
|
(160)
|
||||||
Asset Impairments and Other Related Charges
|
(154)
|
||||||
Depreciation and Amortization
|
25
|
||||||
Taxes Other Than Income Taxes
|
(9)
|
||||||
Interest and Investment Income
|
6
|
||||||
Carrying Costs Income
|
(19)
|
||||||
Allowance for Equity Funds Used During Construction
|
(20)
|
||||||
Interest Expense
|
(6)
|
||||||
Equity Earnings of Unconsolidated Subsidiaries
|
(1)
|
||||||
Total Change in Expenses and Other
|
(338)
|
||||||
Income Tax Expense
|
50
|
||||||
Six Months Ended June 30, 2013
|
$
|
571
|
·
|
Retail Margins increased $125 million primarily due to the following:
|
|||
·
|
Successful rate proceedings in our service territories which include:
|
|||
·
|
A $146 million rate increase for OPCo.
|
|||
·
|
A $52 million rate increase for I&M.
|
|||
·
|
A $47 million rate increase for SWEPCo.
|
|||
·
|
A $21 million rate increase for APCo.
|
|||
For the rate increases described above, $109 million of these increases relate to riders/trackers which have corresponding increases in other expense items below.
|
||||
·
|
A $50 million net increase in weather-related usage in our eastern and western regions primarily due to increases of 44% and 74%, respectively, in heating degree days in our eastern and western regions, respectively, partially offset by decreases in cooling degree days of 18% and 21% in our eastern and western regions, respectively.
|
|||
·
|
A $47 million increase due to the deferral of consumables and purchased power as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
|||
These increases were partially offset by:
|
||||
·
|
A $153 million decrease attributable to Ohio customers switching to alternative CRES providers. This decrease in Retail Margins is partially offset by an increase in Transmission Revenues related to CRES providers detailed below.
|
|||
·
|
A $66 million increase in other variable electric generation expenses.
|
|||
·
|
A $35 million decrease due to OPCo's second quarter 2012 partial reversal of a 2011 fuel provision based on an April 2012 PUCO order related to the 2009 FAC audit.
|
|||
·
|
Margins from Off-system Sales decreased $75 million primarily due to lower CRES capacity revenues as a result of Reliability Pricing Model pricing effective August 2012, lower PJM capacity revenues and reduced trading and marketing margins, partially offset by higher physical sales volumes and margins. The decrease in CRES capacity revenues is partially offset in other expense items below.
|
·
|
Transmission Revenues increased $35 million primarily due to increased transmission revenues from Ohio customers who have switched to alternative CRES providers and rate increases for customers in the SPP region. The increase in transmission revenues related to CRES providers offsets a portion of the lost revenues included in Retail Margins above.
|
|||
·
|
Other Revenues increased $25 million primarily due to increases in gains on other miscellaneous sales.
|
·
|
Other Operation and Maintenance expenses increased $160 million primarily due to the following:
|
|
·
|
A $45 million increase in remitted USF surcharge payments to the Ohio Department of Development to fund an energy assistance program for qualified Ohio customers. This increase was offset by a corresponding increase in Retail Margins.
|
|
·
|
A $42 million increase in plant outages during 2013.
|
|
·
|
A $35 million increase due to the first quarter 2012 reversal of an obligation to contribute to Partnership with Ohio and Ohio Growth Fund as a result of the PUCO's February 2012 rejection of the Ohio modified stipulation.
|
|
·
|
A $30 million write-off in the first quarter of 2013 of previously deferred 2012 Virginia storm costs resulting from the 2013 enactment of a Virginia law.
|
|
·
|
A $28 million increase in energy efficiency programs and other expenses currently recovered dollar-for-dollar in rate recovery riders/trackers within Gross Margin.
|
|
·
|
A $26 million increase in storm-related expenses primarily in APCo's service territory.
|
|
These increases were partially offset by:
|
||
·
|
A $25 million decrease due to an agreement reached to settle an insurance claim in the first quarter of 2013.
|
|
·
|
A $20 million decrease due to the deferral of capacity-related costs as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
|
·
|
Asset Impairments and Other Related Charges increased $154 million due to the second quarter 2013 impairment of Muskingum River Plant, Unit 5.
|
|
·
|
Depreciation and Amortization expenses decreased $25 million primarily due to the following:
|
|
·
|
A $53 million decrease as a result of depreciation ceasing on certain Ohio generating plants that were impaired in November 2012.
|
|
·
|
A $35 million decrease due to the deferral of capacity-related depreciation costs as a result of the PUCO's July 2012 approval of OPCo's capacity deferral mechanism.
|
|
These decreases were partially offset by:
|
||
·
|
A $22 million increase due to the Turk Plant being placed in service in December 2012.
|
|
·
|
Overall higher depreciable property balances.
|
|
·
|
Taxes Other Than Income Taxes increased $9 million primarily due to increased property taxes as a result of increased capital investments.
|
|
·
|
Carrying Costs Income decreased $19 million primarily due to the following:
|
|
·
|
A $10 million decrease due to an increased recovery of Virginia environmental costs in new base rates as approved by the Virginia SCC in late January 2012 and decreased carrying charges related to the Dresden Plant.
|
|
·
|
An $8 million decrease in carrying costs income due to the first quarter 2012 recording of debt carrying costs prior to TCC's issuance of securitization bonds in March 2012.
|
|
·
|
Allowance for Equity Funds Used During Construction decreased $20 million primarily due to completed construction of the Turk Plant in December 2012.
|
|
·
|
Income Tax Expense decreased $50 million primarily due to a decrease in pretax book income partially offset by audit settlements for previous years recorded in 2012 and other book/tax differences which are accounted for on a flow through basis.
|
June 30, 2013
|
December 31, 2012
|
|||||||||||
(dollars in millions)
|
||||||||||||
Long-term Debt, including amounts due within one year
|
$
|
17,618
|
50.8
|
%
|
$
|
17,757
|
52.3
|
%
|
||||
Short-term Debt
|
1,538
|
4.4
|
981
|
2.9
|
||||||||
Total Debt
|
19,156
|
55.2
|
18,738
|
55.2
|
||||||||
AEP Common Equity
|
15,537
|
44.8
|
15,237
|
44.8
|
||||||||
Total Debt and Equity Capitalization
|
$
|
34,693
|
100.0
|
%
|
$
|
33,975
|
100.0
|
%
|
Amount
|
Maturity
|
||||||
(in millions)
|
|||||||
Commercial Paper Backup:
|
|||||||
Revolving Credit Facility
|
$
|
1,750
|
June 2016
|
||||
Revolving Credit Facility
|
1,750
|
July 2017
|
|||||
Term Credit Facility
|
1,000
|
May 2015
|
|||||
Total
|
4,500
|
||||||
Cash and Cash Equivalents
|
117
|
||||||
Total Liquidity Sources
|
4,617
|
||||||
Less:
|
AEP Commercial Paper Outstanding
|
850
|
|||||
Letters of Credit Issued
|
120
|
||||||
Draw on Term Credit Facility
|
200
|
||||||
Net Available Liquidity
|
$
|
3,447
|
Six Months Ended
|
|||||||
June 30,
|
|||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
$
|
279
|
$
|
221
|
|||
Net Cash Flows from Operating Activities
|
1,516
|
1,713
|
|||||
Net Cash Flows Used for Investing Activities
|
(1,643)
|
(1,530)
|
|||||
Net Cash Flows Used for Financing Activities
|
(35)
|
(107)
|
|||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(162)
|
76
|
|||||
Cash and Cash Equivalents at End of Period
|
$
|
117
|
$
|
297
|
Six Months Ended
|
|||||||
June 30,
|
|||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Net Income
|
$
|
703
|
$
|
753
|
|||
Depreciation and Amortization
|
863
|
883
|
|||||
Other
|
(50)
|
77
|
|||||
Net Cash Flows from Operating Activities
|
$
|
1,516
|
$
|
1,713
|
Six Months Ended
|
|||||||
June 30,
|
|||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Construction Expenditures
|
$
|
(1,637)
|
$
|
(1,371)
|
|||
Acquisitions of Nuclear Fuel
|
(59)
|
(11)
|
|||||
Acquisitions of Assets/Businesses
|
(4)
|
(88)
|
|||||
Insurance Proceeds Related to Cook Plant Fire
|
72
|
-
|
|||||
Proceeds from Sales of Assets
|
11
|
8
|
|||||
Other
|
(26)
|
(68)
|
|||||
Net Cash Flows Used for Investing Activities
|
$
|
(1,643)
|
$
|
(1,530)
|
Six Months Ended
|
|||||||
June 30,
|
|||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Issuance of Common Stock, Net
|
$
|
41
|
$
|
50
|
|||
Issuance of Debt, Net
|
425
|
332
|
|||||
Dividends Paid on Common Stock
|
(469)
|
(458)
|
|||||
Other
|
(32)
|
(31)
|
|||||
Net Cash Flows Used for Financing Activities
|
$
|
(35)
|
$
|
(107)
|
June 30,
|
December 31,
|
||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Rockport Plant, Unit 2 Future Minimum Lease Payments
|
$
|
1,404
|
$
|
1,478
|
|||
Railcars Maximum Potential Loss From Lease Agreement
|
19
|
25
|
MTM Risk Management Contract Net Assets (Liabilities)
|
|||||||||
Six Months Ended June 30, 2013
|
|||||||||
Generation
|
|||||||||
Utility
|
and
|
||||||||
Operations
|
Marketing
|
Total
|
|||||||
(in millions)
|
|||||||||
Total MTM Risk Management Contract Net Assets
|
|||||||||
as of December 31, 2012
|
$
|
68
|
$
|
128
|
$
|
196
|
|||
(Gain) Loss from Contracts Realized/Settled During the Period and
|
|||||||||
Entered in a Prior Period
|
(17)
|
(11)
|
(28)
|
||||||
Fair Value of New Contracts at Inception When Entered During the
|
|||||||||
Period (a)
|
-
|
10
|
10
|
||||||
Changes in Fair Value Due to Market Fluctuations During the
|
|||||||||
Period (b)
|
1
|
13
|
14
|
||||||
Changes in Fair Value Allocated to Regulated Jurisdictions (c)
|
12
|
-
|
12
|
||||||
Total MTM Risk Management Contract Net Assets
|
|||||||||
as of June 30, 2013
|
$
|
64
|
$
|
140
|
204
|
||||
Commodity Cash Flow Hedge Contracts
|
2
|
||||||||
Interest Rate and Foreign Currency Cash Flow Hedge Contracts
|
(2)
|
||||||||
Fair Value Hedge Contracts
|
(12)
|
||||||||
Collateral Deposits
|
20
|
||||||||
Total MTM Derivative Contract Net Assets as of June 30, 2013
|
$
|
212
|
(a)
|
Reflects fair value on primarily long-term structured contracts which are typically with customers that seek fixed pricing to limit their risk against fluctuating energy prices. The contract prices are valued against market curves associated with the delivery location and delivery term. A significant portion of the total volumetric position has been economically hedged.
|
(b)
|
Market fluctuations are attributable to various factors such as supply/demand, weather, etc.
|
(c)
|
Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
Exposure
|
Number of
|
Net Exposure
|
||||||||||||||
Before
|
Counterparties
|
of
|
||||||||||||||
Credit
|
Credit
|
Net
|
>10% of
|
Counterparties
|
||||||||||||
Counterparty Credit Quality
|
Collateral
|
Collateral
|
Exposure
|
Net Exposure
|
>10%
|
|||||||||||
(in millions, except number of counterparties)
|
||||||||||||||||
Investment Grade
|
$
|
594
|
$
|
1
|
$
|
593
|
2
|
$
|
263
|
|||||||
Split Rating
|
1
|
1
|
-
|
-
|
-
|
|||||||||||
Noninvestment Grade
|
1
|
1
|
-
|
1
|
-
|
|||||||||||
No External Ratings:
|
||||||||||||||||
Internal Investment Grade
|
71
|
-
|
71
|
3
|
29
|
|||||||||||
Internal Noninvestment Grade
|
69
|
11
|
58
|
2
|
40
|
|||||||||||
Total as of June 30, 2013
|
$
|
736
|
$
|
14
|
$
|
722
|
8
|
$
|
332
|
|||||||
Total as of December 31, 2012
|
$
|
807
|
$
|
13
|
$
|
794
|
7
|
$
|
338
|
Six Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||
June 30, 2013
|
December 31, 2012
|
|||||||||||||||||||||
End
|
High
|
Average
|
Low
|
End
|
High
|
Average
|
Low
|
|||||||||||||||
(in millions)
|
(in millions)
|
|||||||||||||||||||||
$
|
-
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1
|
$
|
-
|
$
|
-
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in millions, except per-share and share amounts)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
REVENUES
|
|||||||||||||
Utility Operations
|
$
|
3,253
|
$
|
3,235
|
$
|
6,742
|
$
|
6,598
|
|||||
Other Revenues
|
329
|
316
|
666
|
578
|
|||||||||
TOTAL REVENUES
|
3,582
|
3,551
|
7,408
|
7,176
|
|||||||||
EXPENSES
|
|||||||||||||
Fuel and Other Consumables Used for Electric Generation
|
908
|
904
|
1,939
|
1,957
|
|||||||||
Purchased Electricity for Resale
|
359
|
268
|
730
|
528
|
|||||||||
Other Operation
|
664
|
719
|
1,402
|
1,375
|
|||||||||
Maintenance
|
285
|
252
|
578
|
514
|
|||||||||
Asset Impairments and Other Related Charges
|
154
|
-
|
154
|
-
|
|||||||||
Depreciation and Amortization
|
443
|
460
|
863
|
883
|
|||||||||
Taxes Other Than Income Taxes
|
222
|
207
|
440
|
424
|
|||||||||
TOTAL EXPENSES
|
3,035
|
2,810
|
6,106
|
5,681
|
|||||||||
OPERATING INCOME
|
547
|
741
|
1,302
|
1,495
|
|||||||||
Other Income (Expense):
|
|||||||||||||
Interest and Investment Income
|
49
|
2
|
52
|
4
|
|||||||||
Carrying Costs Income
|
8
|
11
|
12
|
31
|
|||||||||
Allowance for Equity Funds Used During Construction
|
17
|
24
|
32
|
47
|
|||||||||
Interest Expense
|
(228)
|
(235)
|
(460)
|
(464)
|
|||||||||
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
393
|
543
|
938
|
1,113
|
|||||||||
Income Tax Expense
|
68
|
190
|
263
|
379
|
|||||||||
Equity Earnings of Unconsolidated Subsidiaries
|
14
|
10
|
28
|
19
|
|||||||||
NET INCOME
|
339
|
363
|
703
|
753
|
|||||||||
Net Income Attributable to Noncontrolling Interests
|
1
|
1
|
2
|
2
|
|||||||||
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
$
|
338
|
$
|
362
|
$
|
701
|
$
|
751
|
|||||
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
486,293,026
|
484,500,029
|
486,059,643
|
484,164,065
|
|||||||||
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON
|
|||||||||||||
SHAREHOLDERS
|
$
|
0.69
|
$
|
0.75
|
$
|
1.44
|
$
|
1.55
|
|||||
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
486,763,615
|
484,860,690
|
486,555,121
|
484,554,779
|
|||||||||
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON
|
|||||||||||||
SHAREHOLDERS
|
$
|
0.69
|
$
|
0.75
|
$
|
1.44
|
$
|
1.55
|
|||||
CASH DIVIDENDS DECLARED PER SHARE
|
$
|
0.49
|
$
|
0.47
|
$
|
0.96
|
$
|
0.94
|
|||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 37.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in millions)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Net Income
|
$
|
339
|
$
|
363
|
$
|
703
|
$
|
753
|
|||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|||||||||||||
Cash Flow Hedges, Net of Tax of $5 and $5 for the Three Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively, and $8 and $11 for the Six
|
|||||||||||||
Months Ended June 30, 2013 and 2012, Respectively
|
(10)
|
(10)
|
14
|
(21)
|
|||||||||
Securities Available for Sale, Net of Tax of $- and $- for the Three Months
|
|||||||||||||
Ended June 30, 2013 and 2012, Respectively, and $- and $1 for the
|
|||||||||||||
Six Months Ended June 30, 2013 and 2012, Respectively
|
-
|
(1)
|
1
|
1
|
|||||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $2
|
|||||||||||||
and $4 for the Three Months Ended June 30, 2013 and 2012,
|
|||||||||||||
Respectively, and $5 and $8 for the Six Months Ended June 30,
|
|||||||||||||
2013 and 2012, Respectively
|
3
|
8
|
9
|
15
|
|||||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
(7)
|
(3)
|
24
|
(5)
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
332
|
360
|
727
|
748
|
|||||||||
Total Comprehensive Income Attributable to Noncontrolling Interests
|
1
|
1
|
2
|
2
|
|||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO AEP
|
|||||||||||||
COMMON SHAREHOLDERS
|
$
|
331
|
$
|
359
|
$
|
725
|
$
|
746
|
|||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 37.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|||||||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||
AEP Common Shareholders
|
|||||||||||||||||||||||
Common Stock
|
Accumulated
|
||||||||||||||||||||||
Other
|
|||||||||||||||||||||||
Paid-in
|
Retained
|
Comprehensive
|
Noncontrolling
|
||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income (Loss)
|
Interests
|
Total
|
|||||||||||||||||
TOTAL EQUITY – DECEMBER 31, 2011
|
504
|
$
|
3,274
|
$
|
5,970
|
$
|
5,890
|
$
|
(470)
|
$
|
1
|
$
|
14,665
|
||||||||||
Issuance of Common Stock
|
1
|
10
|
40
|
50
|
|||||||||||||||||||
Common Stock Dividends
|
(456)
|
(2)
|
(458)
|
||||||||||||||||||||
Other Changes in Equity
|
3
|
3
|
|||||||||||||||||||||
Net Income
|
751
|
2
|
753
|
||||||||||||||||||||
Other Comprehensive Loss
|
(5)
|
(5)
|
|||||||||||||||||||||
TOTAL EQUITY – JUNE 30, 2012
|
505
|
$
|
3,284
|
$
|
6,013
|
$
|
6,185
|
$
|
(475)
|
$
|
1
|
$
|
15,008
|
||||||||||
TOTAL EQUITY – DECEMBER 31, 2012
|
506
|
$
|
3,289
|
$
|
6,049
|
$
|
6,236
|
$
|
(337)
|
$
|
-
|
$
|
15,237
|
||||||||||
Issuance of Common Stock
|
1
|
7
|
34
|
41
|
|||||||||||||||||||
Common Stock Dividends
|
(467)
|
(2)
|
(469)
|
||||||||||||||||||||
Other Changes in Equity
|
1
|
1
|
|||||||||||||||||||||
Net Income
|
701
|
2
|
703
|
||||||||||||||||||||
Other Comprehensive Income
|
24
|
24
|
|||||||||||||||||||||
TOTAL EQUITY – JUNE 30, 2013
|
507
|
$
|
3,296
|
$
|
6,084
|
$
|
6,470
|
$
|
(313)
|
$
|
-
|
$
|
15,537
|
||||||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 37.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
ASSETS
|
||||||||||||
June 30, 2013 and December 31, 2012
|
||||||||||||
(in millions)
|
||||||||||||
(Unaudited)
|
||||||||||||
June 30,
|
December 31,
|
|||||||||||
2013
|
2012
|
|||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and Cash Equivalents
|
$
|
117
|
$
|
279
|
||||||||
Other Temporary Investments
|
||||||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $281 and $311, Respectively, Related to Transition Funding and EIS)
|
298
|
324
|
||||||||||
Accounts Receivable:
|
||||||||||||
Customers
|
725
|
685
|
||||||||||
Accrued Unbilled Revenues
|
95
|
195
|
||||||||||
Pledged Accounts Receivable – AEP Credit
|
975
|
856
|
||||||||||
Miscellaneous
|
174
|
171
|
||||||||||
Allowance for Uncollectible Accounts
|
(38)
|
(36)
|
||||||||||
Total Accounts Receivable
|
1,931
|
1,871
|
||||||||||
Fuel
|
879
|
844
|
||||||||||
Materials and Supplies
|
695
|
675
|
||||||||||
Risk Management Assets
|
187
|
191
|
||||||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
98
|
88
|
||||||||||
Margin Deposits
|
80
|
76
|
||||||||||
Prepayments and Other Current Assets
|
337
|
241
|
||||||||||
TOTAL CURRENT ASSETS
|
4,622
|
4,589
|
||||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||||||
Electric:
|
||||||||||||
Generation
|
26,183
|
26,279
|
||||||||||
Transmission
|
10,081
|
9,846
|
||||||||||
Distribution
|
15,887
|
15,565
|
||||||||||
Other Property, Plant and Equipment (Including Nuclear Fuel and Coal Mining)
|
4,033
|
3,945
|
||||||||||
Construction Work in Progress
|
2,173
|
1,819
|
||||||||||
Total Property, Plant and Equipment
|
58,357
|
57,454
|
||||||||||
Accumulated Depreciation and Amortization
|
18,932
|
18,691
|
||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
39,425
|
38,763
|
||||||||||
OTHER NONCURRENT ASSETS
|
||||||||||||
Regulatory Assets
|
5,139
|
5,106
|
||||||||||
Securitized Transition Assets
|
2,013
|
2,117
|
||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
1,791
|
1,706
|
||||||||||
Goodwill
|
91
|
91
|
||||||||||
Long-term Risk Management Assets
|
317
|
368
|
||||||||||
Deferred Charges and Other Noncurrent Assets
|
1,581
|
1,627
|
||||||||||
TOTAL OTHER NONCURRENT ASSETS
|
10,932
|
11,015
|
||||||||||
TOTAL ASSETS
|
$
|
54,979
|
$
|
54,367
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 37.
|
||||||||||||
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
LIABILITIES AND EQUITY
|
||||||||||||
June 30, 2013 and December 31, 2012
|
||||||||||||
(dollars in millions)
|
||||||||||||
(Unaudited)
|
||||||||||||
June 30,
|
December 31,
|
|||||||||||
2013
|
2012
|
|||||||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts Payable
|
$
|
987
|
$
|
1,169
|
||||||||
Short-term Debt:
|
||||||||||||
Securitized Debt for Receivables - AEP Credit
|
688
|
657
|
||||||||||
Other Short-term Debt
|
850
|
324
|
||||||||||
Total Short-term Debt
|
1,538
|
981
|
||||||||||
Long-term Debt Due Within One Year
|
||||||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $396 and $367, Respectively, Related to Transition Funding, DCC Fuel and Sabine)
|
1,819
|
2,171
|
||||||||||
Risk Management Liabilities
|
111
|
155
|
||||||||||
Customer Deposits
|
297
|
316
|
||||||||||
Accrued Taxes
|
680
|
747
|
||||||||||
Accrued Interest
|
254
|
269
|
||||||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
10
|
47
|
||||||||||
Other Current Liabilities
|
823
|
968
|
||||||||||
TOTAL CURRENT LIABILITIES
|
6,519
|
6,823
|
||||||||||
NONCURRENT LIABILITIES
|
||||||||||||
Long-term Debt
|
||||||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $2,105 and $2,227, Respectively, Related to Transition Funding, DCC Fuel and Sabine)
|
15,799
|
15,586
|
||||||||||
Long-term Risk Management Liabilities
|
181
|
214
|
||||||||||
Deferred Income Taxes
|
9,691
|
9,252
|
||||||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
3,585
|
3,544
|
||||||||||
Asset Retirement Obligations
|
1,734
|
1,696
|
||||||||||
Employee Benefits and Pension Obligations
|
1,044
|
1,075
|
||||||||||
Deferred Credits and Other Noncurrent Liabilities
|
889
|
940
|
||||||||||
TOTAL NONCURRENT LIABILITIES
|
32,923
|
32,307
|
||||||||||
TOTAL LIABILITIES
|
39,442
|
39,130
|
||||||||||
Rate Matters (Note 3)
|
||||||||||||
Commitments and Contingencies (Note 4)
|
||||||||||||
EQUITY
|
||||||||||||
Common Stock – Par Value – $6.50 Per Share:
|
||||||||||||
2013
|
2012
|
|||||||||||
Shares Authorized
|
600,000,000
|
600,000,000
|
||||||||||
Shares Issued
|
507,071,824
|
506,004,962
|
||||||||||
(20,336,592 Shares were Held in Treasury as of June 30, 2013 and December 31, 2012)
|
3,296
|
3,289
|
||||||||||
Paid-in Capital
|
6,084
|
6,049
|
||||||||||
Retained Earnings
|
6,470
|
6,236
|
||||||||||
Accumulated Other Comprehensive Income (Loss)
|
(313)
|
(337)
|
||||||||||
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY
|
15,537
|
15,237
|
||||||||||
Noncontrolling Interests
|
-
|
-
|
||||||||||
TOTAL EQUITY
|
15,537
|
15,237
|
||||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
54,979
|
$
|
54,367
|
||||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 37.
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Six Months Ended June 30, 2013 and 2012
|
||||||||
(in millions)
|
||||||||
(Unaudited)
|
||||||||
Six Months Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net Income
|
$
|
703
|
$
|
753
|
||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
||||||||
Depreciation and Amortization
|
863
|
883
|
||||||
Deferred Income Taxes
|
367
|
417
|
||||||
Asset Impairments and Other Related Charges
|
154
|
-
|
||||||
Carrying Costs Income
|
(12)
|
(31)
|
||||||
Allowance for Equity Funds Used During Construction
|
(32)
|
(47)
|
||||||
Mark-to-Market of Risk Management Contracts
|
16
|
8
|
||||||
Amortization of Nuclear Fuel
|
63
|
64
|
||||||
Property Taxes
|
68
|
68
|
||||||
Fuel Over/Under-Recovery, Net
|
(4)
|
91
|
||||||
Deferral of Ohio Capacity Costs, Net
|
(102)
|
-
|
||||||
Change in Other Noncurrent Assets
|
(20)
|
(80)
|
||||||
Change in Other Noncurrent Liabilities
|
12
|
31
|
||||||
Changes in Certain Components of Working Capital:
|
||||||||
Accounts Receivable, Net
|
(53)
|
93
|
||||||
Fuel, Materials and Supplies
|
(61)
|
(199)
|
||||||
Accounts Payable
|
(57)
|
(100)
|
||||||
Accrued Taxes, Net
|
(214)
|
(92)
|
||||||
Other Current Assets
|
(10)
|
(7)
|
||||||
Other Current Liabilities
|
(165)
|
(139)
|
||||||
Net Cash Flows from Operating Activities
|
1,516
|
1,713
|
||||||
INVESTING ACTIVITIES
|
||||||||
Construction Expenditures
|
(1,637)
|
(1,371)
|
||||||
Change in Other Temporary Investments, Net
|
38
|
(1)
|
||||||
Purchases of Investment Securities
|
(423)
|
(546)
|
||||||
Sales of Investment Securities
|
385
|
517
|
||||||
Acquisitions of Nuclear Fuel
|
(59)
|
(11)
|
||||||
Acquisitions of Assets/Businesses
|
(4)
|
(88)
|
||||||
Insurance Proceeds Related to Cook Plant Fire
|
72
|
-
|
||||||
Proceeds from Sales of Assets
|
11
|
8
|
||||||
Other Investing Activities
|
(26)
|
(38)
|
||||||
Net Cash Flows Used for Investing Activities
|
(1,643)
|
(1,530)
|
||||||
FINANCING ACTIVITIES
|
||||||||
Issuance of Common Stock, Net
|
41
|
50
|
||||||
Issuance of Long-term Debt
|
941
|
1,261
|
||||||
Commercial Paper and Credit Facility Borrowings
|
17
|
21
|
||||||
Change in Short-term Debt, Net
|
560
|
(425)
|
||||||
Retirement of Long-term Debt
|
(1,073)
|
(487)
|
||||||
Commercial Paper and Credit Facility Repayments
|
(20)
|
(38)
|
||||||
Principal Payments for Capital Lease Obligations
|
(33)
|
(36)
|
||||||
Dividends Paid on Common Stock
|
(469)
|
(458)
|
||||||
Other Financing Activities
|
1
|
5
|
||||||
Net Cash Flows Used for Financing Activities
|
(35)
|
(107)
|
||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(162)
|
76
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
279
|
221
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
117
|
$
|
297
|
||||
SUPPLEMENTARY INFORMATION
|
||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$
|
455
|
$
|
444
|
||||
Net Cash Paid (Received) for Income Taxes
|
(10)
|
(42)
|
||||||
Noncash Acquisitions Under Capital Leases
|
31
|
33
|
||||||
Construction Expenditures Included in Current Liabilities as of June 30,
|
297
|
255
|
||||||
Acquisition of Nuclear Fuel Included in Current Liabilities as of June 30,
|
41
|
-
|
||||||
Noncash Assumption of Liabilities Related to Acquisitions
|
-
|
56
|
||||||
See Condensed Notes to Condensed Consolidated Financial Statements beginning on page 37.
|
Page
|
|
Number
|
|
Significant Accounting Matters
|
38 |
Comprehensive Income
|
39 |
Rate Matters
|
43 |
Commitments, Guarantees and Contingencies
|
53 |
Acquisition and Impairment
|
56 |
Benefit Plans
|
57 |
Business Segments
|
58 |
Derivatives and Hedging
|
60 |
Fair Value Measurements
|
67 |
Income Taxes
|
76 |
Financing Activities
|
77 |
Variable Interest Entities
|
80 |
Sustainable Cost Reductions
|
84 |
Three Months Ended June 30,
|
|||||||||||||
2013
|
2012
|
||||||||||||
(in millions, except per share data)
|
|||||||||||||
$/share
|
$/share
|
||||||||||||
Earnings Attributable to AEP Common Shareholders
|
$
|
338
|
$
|
362
|
|||||||||
Weighted Average Number of Basic Shares Outstanding
|
486.3
|
$
|
0.69
|
484.5
|
$
|
0.75
|
|||||||
Weighted Average Dilutive Effect of:
|
|||||||||||||
Stock Options
|
-
|
-
|
0.1
|
-
|
|||||||||
Restricted Stock Units
|
0.5
|
-
|
0.3
|
-
|
|||||||||
Weighted Average Number of Diluted Shares Outstanding
|
486.8
|
$
|
0.69
|
484.9
|
$
|
0.75
|
Six Months Ended June 30,
|
|||||||||||||
2013
|
2012
|
||||||||||||
(in millions, except per share data)
|
|||||||||||||
$/share
|
$/share
|
||||||||||||
Earnings Attributable to AEP Common Shareholders
|
$
|
701
|
$
|
751
|
|||||||||
Weighted Average Number of Basic Shares Outstanding
|
486.1
|
$
|
1.44
|
484.2
|
$
|
1.55
|
|||||||
Weighted Average Dilutive Effect of:
|
|||||||||||||
Stock Options
|
-
|
-
|
0.1
|
-
|
|||||||||
Restricted Stock Units
|
0.5
|
-
|
0.3
|
-
|
|||||||||
Weighted Average Number of Diluted Shares Outstanding
|
486.6
|
$
|
1.44
|
484.6
|
$
|
1.55
|
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||||
Cash Flow Hedges
|
||||||||||||||||
Interest Rate and
|
Securities
|
Pension
|
||||||||||||||
Commodity
|
Foreign Currency
|
Available for Sale
|
and OPEB
|
Total
|
||||||||||||
(in millions)
|
||||||||||||||||
Balance in AOCI as of March 31, 2013
|
$
|
12
|
$
|
(26)
|
$
|
5
|
$
|
(297)
|
$
|
(306)
|
||||||
Change in Fair Value Recognized in AOCI
|
(8)
|
(1)
|
-
|
-
|
(9)
|
|||||||||||
Amounts Reclassified from AOCI
|
(3)
|
2
|
-
|
3
|
2
|
|||||||||||
Net Current Period Other
|
||||||||||||||||
Comprehensive Income
|
(11)
|
1
|
-
|
3
|
(7)
|
|||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
1
|
$
|
(25)
|
$
|
5
|
$
|
(294)
|
$
|
(313)
|
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||||
Cash Flow Hedges
|
||||||||||||||||
Interest Rate and
|
Securities
|
Pension
|
||||||||||||||
Commodity
|
Foreign Currency
|
Available for Sale
|
and OPEB
|
Total
|
||||||||||||
(in millions)
|
||||||||||||||||
Balance in AOCI as of December 31, 2012
|
$
|
(8)
|
$
|
(30)
|
$
|
4
|
$
|
(303)
|
$
|
(337)
|
||||||
Change in Fair Value Recognized in AOCI
|
10
|
2
|
1
|
-
|
13
|
|||||||||||
Amounts Reclassified from AOCI
|
(1)
|
3
|
-
|
9
|
11
|
|||||||||||
Net Current Period Other
|
||||||||||||||||
Comprehensive Income
|
9
|
5
|
1
|
9
|
24
|
|||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
1
|
$
|
(25)
|
$
|
5
|
$
|
(294)
|
$
|
(313)
|
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
|||||
For the Three Months Ended June 30, 2013
|
|||||
Amount of
|
|||||
(Gain) Loss
|
|||||
Reclassified
|
|||||
from AOCI
|
|||||
Gains and Losses on Cash Flow Hedges
|
(in millions)
|
||||
Commodity:
|
|||||
Utility Operations Revenues
|
$
|
-
|
|||
Other Revenues
|
(2)
|
||||
Purchased Electricity for Resale
|
(2)
|
||||
Property, Plant and Equipment
|
-
|
||||
Regulatory Assets (a)
|
-
|
||||
Subtotal - Commodity
|
(4)
|
||||
Interest Rate and Foreign Currency:
|
|||||
Interest Expense
|
2
|
||||
Subtotal - Interest Rate and Foreign Currency
|
2
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(2)
|
||||
Income Tax (Expense) Credit
|
(1)
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
(1)
|
||||
Gains and Losses on Available-for-Sale Securities
|
|||||
Interest Income
|
-
|
||||
Interest Expense
|
-
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
-
|
||||
Income Tax (Expense) Credit
|
-
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
-
|
||||
Amortization of Pension and OPEB
|
|||||
Prior Service Cost (Credit)
|
(4)
|
||||
Actuarial (Gains)/Losses
|
9
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
5
|
||||
Income Tax (Expense) Credit
|
2
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
3
|
||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
2
|
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
|||||
For the Six Months Ended June 30, 2013
|
|||||
Amount of
|
|||||
(Gain) Loss
|
|||||
Reclassified
|
|||||
from AOCI
|
|||||
Gains and Losses on Cash Flow Hedges
|
(in millions)
|
||||
Commodity:
|
|||||
Utility Operations Revenues
|
$
|
-
|
|||
Other Revenues
|
(5)
|
||||
Purchased Electricity for Resale
|
4
|
||||
Property, Plant and Equipment
|
-
|
||||
Regulatory Assets (a)
|
-
|
||||
Subtotal - Commodity
|
(1)
|
||||
Interest Rate and Foreign Currency:
|
|||||
Interest Expense
|
4
|
||||
Subtotal - Interest Rate and Foreign Currency
|
4
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
3
|
||||
Income Tax (Expense) Credit
|
1
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
2
|
||||
Gains and Losses on Available-for-Sale Securities
|
|||||
Interest Income
|
-
|
||||
Interest Expense
|
-
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
-
|
||||
Income Tax (Expense) Credit
|
-
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
-
|
||||
Amortization of Pension and OPEB
|
|||||
Prior Service Cost (Credit)
|
(9)
|
||||
Actuarial (Gains)/Losses
|
23
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
14
|
||||
Income Tax (Expense) Credit
|
5
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
9
|
||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
11
|
|
(a)
|
Represents realized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||
For the Three Months Ended June 30, 2012
|
|||||||||||
Interest Rate
|
|||||||||||
and Foreign
|
|||||||||||
Commodity
|
Currency
|
Total
|
|||||||||
(in millions)
|
|||||||||||
Balance in AOCI as of March 31, 2012
|
$
|
(16)
|
$
|
(18)
|
$
|
(34)
|
|||||
Changes in Fair Value Recognized in AOCI
|
(3)
|
(13)
|
(16)
|
||||||||
Amount of (Gain) or Loss Reclassified from AOCI
|
|||||||||||
to Statement of Income/within Balance Sheet:
|
|||||||||||
Utility Operations Revenues
|
-
|
-
|
-
|
||||||||
Other Revenues
|
(2)
|
-
|
(2)
|
||||||||
Purchased Electricity for Resale
|
6
|
-
|
6
|
||||||||
Interest Expense
|
-
|
1
|
1
|
||||||||
Regulatory Assets (a)
|
1
|
-
|
1
|
||||||||
Balance in AOCI as of June 30, 2012
|
$
|
(14)
|
$
|
(30)
|
$
|
(44)
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
|||||||||||
For the Six Months Ended June 30, 2012
|
|||||||||||
Interest Rate
|
|||||||||||
and Foreign
|
|||||||||||
Commodity
|
Currency
|
Total
|
|||||||||
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2011
|
$
|
(3)
|
$
|
(20)
|
$
|
(23)
|
|||||
Changes in Fair Value Recognized in AOCI
|
(23)
|
(12)
|
(35)
|
||||||||
Amount of (Gain) or Loss Reclassified from AOCI
|
|||||||||||
to Statement of Income/within Balance Sheet:
|
|||||||||||
Utility Operations Revenues
|
-
|
-
|
-
|
||||||||
Other Revenues
|
(3)
|
-
|
(3)
|
||||||||
Purchased Electricity for Resale
|
13
|
-
|
13
|
||||||||
Interest Expense
|
-
|
2
|
2
|
||||||||
Regulatory Assets (a)
|
2
|
-
|
2
|
||||||||
Balance in AOCI as of June 30, 2012
|
$
|
(14)
|
$
|
(30)
|
$
|
(44)
|
|
Represents realized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Securities Available for Sale
|
|||||
For the Three Months Ended June 30, 2012
|
|||||
(in millions)
|
|||||
Balance in AOCI as of March 31, 2012
|
$
|
4
|
|||
Changes in Fair Value Recognized in AOCI
|
(1)
|
||||
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:
|
|||||
Interest Income
|
-
|
||||
Balance in AOCI as of June 30, 2012
|
$
|
3
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Securities Available for Sale
|
|||||
For the Six Months Ended June 30, 2012
|
|||||
(in millions)
|
|||||
Balance in AOCI as of December 31, 2011
|
$
|
2
|
|||
Changes in Fair Value Recognized in AOCI
|
1
|
||||
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:
|
|||||
Interest Income
|
-
|
||||
Balance in AOCI as of June 30, 2012
|
$
|
3
|
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(in millions)
|
||||||||
Noncurrent Regulatory Assets
|
||||||||
Regulatory assets not yet being recovered pending future proceedings:
|
||||||||
Regulatory Assets Currently Earning a Return
|
||||||||
Storm Related Costs
|
$
|
22
|
$
|
23
|
||||
Economic Development Rider
|
14
|
13
|
||||||
Other Regulatory Assets Not Yet Being Recovered
|
3
|
1
|
||||||
Regulatory Assets Currently Not Earning a Return
|
||||||||
Storm Related Costs
|
142
|
172
|
||||||
Virginia Environmental Rate Adjustment Clause
|
29
|
29
|
||||||
Ormet Delayed Payment Arrangement
|
20
|
5
|
||||||
Mountaineer Carbon Capture and Storage Product Validation Facility
|
14
|
14
|
||||||
Litigation Settlement
|
-
|
11
|
||||||
Other Regulatory Assets Not Yet Being Recovered
|
44
|
36
|
||||||
Total Regulatory Assets Not Yet Being Recovered
|
$
|
288
|
$
|
304
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions)
|
|||||||||||
Service Cost
|
$
|
18
|
$
|
19
|
$
|
6
|
$
|
11
|
|||
Interest Cost
|
51
|
55
|
17
|
26
|
|||||||
Expected Return on Plan Assets
|
(70)
|
(79)
|
(26)
|
(25)
|
|||||||
Amortization of Prior Service Credit
|
-
|
-
|
(18)
|
(4)
|
|||||||
Amortization of Net Actuarial Loss
|
46
|
38
|
16
|
15
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
45
|
$
|
33
|
$
|
(5)
|
$
|
23
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions)
|
|||||||||||
Service Cost
|
$
|
35
|
$
|
38
|
$
|
12
|
$
|
23
|
|||
Interest Cost
|
101
|
111
|
35
|
52
|
|||||||
Expected Return on Plan Assets
|
(139)
|
(159)
|
(53)
|
(50)
|
|||||||
Amortization of Prior Service Cost (Credit)
|
1
|
-
|
(35)
|
(9)
|
|||||||
Amortization of Net Actuarial Loss
|
92
|
75
|
32
|
29
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
90
|
$
|
65
|
$
|
(9)
|
$
|
45
|
·
|
Generation of electricity for sale to U.S. retail and wholesale customers.
|
·
|
Transmission and distribution of electricity through assets owned and operated by our ten utility operating companies.
|
·
|
Development, construction and operation of transmission facilities through investments in our wholly-owned transmission subsidiaries and transmission joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.
|
·
|
Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.
|
·
|
Nonregulated generation in ERCOT.
|
·
|
Marketing, risk management and retail activities in ERCOT, PJM and MISO.
|
Nonutility Operations
|
|||||||||||||||||||||||||
Generation
|
|||||||||||||||||||||||||
Utility
|
Transmission
|
AEP River
|
and
|
All Other
|
Reconciling
|
||||||||||||||||||||
Operations
|
Operations
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||
Three Months Ended June 30, 2013
|
|||||||||||||||||||||||||
Revenues from:
|
|||||||||||||||||||||||||
External Customers
|
$
|
3,246
|
$
|
7
|
$
|
112
|
$
|
214
|
$
|
3
|
$
|
-
|
$
|
3,582
|
|||||||||||
Other Operating Segments
|
32
|
12
|
5
|
-
|
1
|
(50)
|
-
|
||||||||||||||||||
Total Revenues
|
$
|
3,278
|
$
|
19
|
$
|
117
|
$
|
214
|
$
|
4
|
$
|
(50)
|
$
|
3,582
|
|||||||||||
Net Income (Loss)
|
$
|
222
|
$
|
18
|
$
|
(9)
|
$
|
4
|
$
|
104
|
$
|
-
|
$
|
339
|
|||||||||||
Nonutility Operations
|
|||||||||||||||||||||||||
Generation
|
|||||||||||||||||||||||||
Utility
|
Transmission
|
AEP River
|
and
|
All Other
|
Reconciling
|
||||||||||||||||||||
Operations
|
Operations
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||
Three Months Ended June 30, 2012
|
|||||||||||||||||||||||||
Revenues from:
|
|||||||||||||||||||||||||
External Customers
|
$
|
3,234
|
$
|
1
|
$
|
163
|
$
|
148
|
$
|
5
|
$
|
-
|
$
|
3,551
|
|||||||||||
Other Operating Segments
|
24
|
1
|
4
|
-
|
1
|
(30)
|
-
|
||||||||||||||||||
Total Revenues
|
$
|
3,258
|
$
|
2
|
$
|
167
|
$
|
148
|
$
|
6
|
$
|
(30)
|
$
|
3,551
|
|||||||||||
Net Income (Loss)
|
$
|
365
|
$
|
8
|
$
|
3
|
$
|
(5)
|
$
|
(8)
|
$
|
-
|
$
|
363
|
Nonutility Operations
|
|||||||||||||||||||||||||
Generation
|
|||||||||||||||||||||||||
Utility
|
Transmission
|
AEP River
|
and
|
All Other
|
Reconciling
|
||||||||||||||||||||
Operations
|
Operations
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||
Six Months Ended June 30, 2013
|
|||||||||||||||||||||||||
Revenues from:
|
|||||||||||||||||||||||||
External Customers
|
$
|
6,732
|
$
|
10
|
$
|
240
|
$
|
420
|
$
|
6
|
$
|
-
|
$
|
7,408
|
|||||||||||
Other Operating Segments
|
63
|
17
|
10
|
-
|
3
|
(93)
|
-
|
||||||||||||||||||
Total Revenues
|
$
|
6,795
|
$
|
27
|
$
|
250
|
$
|
420
|
$
|
9
|
$
|
(93)
|
$
|
7,408
|
|||||||||||
Net Income (Loss)
|
$
|
571
|
$
|
31
|
$
|
(11)
|
$
|
11
|
$
|
101
|
$
|
-
|
$
|
703
|
|||||||||||
Nonutility Operations
|
|||||||||||||||||||||||||
Generation
|
|||||||||||||||||||||||||
Utility
|
Transmission
|
AEP River
|
and
|
All Other
|
Reconciling
|
||||||||||||||||||||
Operations
|
Operations
|
Operations
|
Marketing
|
(a)
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||
Six Months Ended June 30, 2012
|
|||||||||||||||||||||||||
Revenues from:
|
|||||||||||||||||||||||||
External Customers
|
$
|
6,596
|
$
|
2
|
$
|
335
|
$
|
233
|
$
|
10
|
$
|
-
|
$
|
7,176
|
|||||||||||
Other Operating Segments
|
47
|
3
|
11
|
-
|
3
|
(64)
|
-
|
||||||||||||||||||
Total Revenues
|
$
|
6,643
|
$
|
5
|
$
|
346
|
$
|
233
|
$
|
13
|
$
|
(64)
|
$
|
7,176
|
|||||||||||
Net Income (Loss)
|
$
|
749
|
$
|
17
|
$
|
12
|
$
|
(6)
|
$
|
(19)
|
$
|
-
|
$
|
753
|
Nonutility Operations
|
|||||||||||||||||||||||||
Generation
|
Reconciling
|
||||||||||||||||||||||||
Utility
|
Transmission
|
AEP River
|
and
|
All Other
|
Adjustments
|
||||||||||||||||||||
Operations
|
Operations
|
Operations
|
Marketing
|
(a)
|
(b)
|
Consolidated | |||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||||||||
Total Property, Plant and Equipment
|
$
|
56,275
|
$
|
1,079
|
$
|
638
|
$
|
626
|
$
|
8
|
$
|
(269)
|
$
|
58,357
|
|||||||||||
Accumulated Depreciation and
|
|||||||||||||||||||||||||
Amortization
|
18,561
|
6
|
175
|
261
|
7
|
(78)
|
18,932
|
||||||||||||||||||
Total Property, Plant and
|
|||||||||||||||||||||||||
Equipment - Net
|
$
|
37,714
|
$
|
1,073
|
$
|
463
|
$
|
365
|
$
|
1
|
$
|
(191)
|
$
|
39,425
|
|||||||||||
Total Assets
|
$
|
51,841
|
$
|
1,588
|
$
|
646
|
$
|
1,017
|
$
|
18,155
|
$
|
(18,268)
|
(c)
|
$
|
54,979
|
||||||||||
Nonutility Operations
|
|||||||||||||||||||||||||
Generation
|
Reconciling
|
||||||||||||||||||||||||
Utility
|
Transmission
|
AEP River
|
and
|
All Other
|
Adjustments
|
||||||||||||||||||||
Operations
|
Operations
|
Operations
|
Marketing
|
(a)
|
(b)
|
Consolidated | |||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||||||||
Total Property, Plant and Equipment
|
$
|
55,707
|
$
|
748
|
$
|
636
|
$
|
621
|
$
|
8
|
$
|
(266)
|
$
|
57,454
|
|||||||||||
Accumulated Depreciation and
|
|||||||||||||||||||||||||
Amortization
|
18,344
|
4
|
161
|
246
|
7
|
(71)
|
18,691
|
||||||||||||||||||
Total Property, Plant and
|
|||||||||||||||||||||||||
Equipment - Net
|
$
|
37,363
|
$
|
744
|
$
|
475
|
$
|
375
|
$
|
1
|
$
|
(195)
|
$
|
38,763
|
|||||||||||
Total Assets
|
$
|
51,477
|
$
|
1,216
|
$
|
670
|
$
|
1,005
|
$
|
17,191
|
$
|
(17,192)
|
(c)
|
$
|
54,367
|
(a)
|
All Other includes Parent's guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
|
(b)
|
Includes eliminations due to an intercompany capital lease.
|
(c)
|
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP's investments in subsidiary companies.
|
Notional Volume of Derivative Instruments
|
|||||||||
Volume
|
|||||||||
June 30,
|
December 31,
|
Unit of
|
|||||||
2013
|
2012
|
Measure
|
|||||||
Primary Risk Exposure
|
(in millions)
|
||||||||
Commodity:
|
|||||||||
Power
|
553
|
498
|
MWhs
|
||||||
Coal
|
5
|
10
|
Tons
|
||||||
Natural Gas
|
159
|
147
|
MMBtus
|
||||||
Heating Oil and Gasoline
|
5
|
6
|
Gallons
|
||||||
Interest Rate
|
$
|
197
|
$
|
235
|
USD
|
||||
Interest Rate and Foreign Currency
|
$
|
874
|
$
|
1,199
|
USD
|
Fair Value of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Gross Amounts
|
Gross
|
Net Amounts of
|
|||||||||||||||||
Risk Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in millions)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
518
|
$
|
27
|
$
|
4
|
$
|
549
|
$
|
(362)
|
$
|
187
|
|||||||
Long-term Risk Management Assets
|
449
|
6
|
-
|
455
|
(138)
|
317
|
|||||||||||||
Total Assets
|
967
|
33
|
4
|
1,004
|
(500)
|
504
|
|||||||||||||
Current Risk Management Liabilities
|
458
|
29
|
1
|
488
|
(377)
|
111
|
|||||||||||||
Long-term Risk Management Liabilities
|
312
|
2
|
17
|
331
|
(150)
|
181
|
|||||||||||||
Total Liabilities
|
770
|
31
|
18
|
819
|
(527)
|
292
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
197
|
$
|
2
|
$
|
(14)
|
$
|
185
|
$
|
27
|
$
|
212
|
|||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Gross Amounts
|
Gross
|
Net Amounts of
|
|||||||||||||||||
Risk Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in millions)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
589
|
$
|
32
|
$
|
3
|
$
|
624
|
$
|
(433)
|
$
|
191
|
|||||||
Long-term Risk Management Assets
|
528
|
5
|
1
|
534
|
(166)
|
368
|
|||||||||||||
Total Assets
|
1,117
|
37
|
4
|
1,158
|
(599)
|
559
|
|||||||||||||
Current Risk Management Liabilities
|
546
|
43
|
35
|
624
|
(469)
|
155
|
|||||||||||||
Long-term Risk Management Liabilities
|
383
|
6
|
6
|
395
|
(181)
|
214
|
|||||||||||||
Total Liabilities
|
929
|
49
|
41
|
1,019
|
(650)
|
369
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
188
|
$
|
(12)
|
$
|
(37)
|
$
|
139
|
$
|
51
|
$
|
190
|
Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the condensed balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."
|
(b)
|
Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.
|
(c)
|
There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.
|
Amount of Gain (Loss) Recognized on
|
||||||||||||
Risk Management Contracts
|
||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
Location of Gain (Loss)
|
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions)
|
||||||||||||
Utility Operations Revenues
|
$
|
5
|
$
|
4
|
$
|
13
|
$
|
14
|
||||
Other Revenues
|
16
|
5
|
30
|
8
|
||||||||
Regulatory Assets (a)
|
(8)
|
(17)
|
(5)
|
(38)
|
||||||||
Regulatory Liabilities (a)
|
4
|
13
|
(3)
|
27
|
||||||||
Total Gain (Loss) on Risk
|
||||||||||||
Management Contracts
|
$
|
17
|
$
|
5
|
$
|
35
|
$
|
11
|
||||
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
Impact of Cash Flow Hedges on the Condensed Balance Sheet
|
|||||||||||
June 30, 2013
|
|||||||||||
Interest Rate
|
|||||||||||
and Foreign
|
|||||||||||
Commodity
|
Currency
|
Total
|
|||||||||
(in millions)
|
|||||||||||
Hedging Assets (a)
|
$
|
14
|
$
|
-
|
$
|
14
|
|||||
Hedging Liabilities (a)
|
12
|
2
|
14
|
||||||||
AOCI Gain (Loss) Net of Tax
|
1
|
(25)
|
(24)
|
||||||||
Portion Expected to be Reclassified to Net
|
|||||||||||
Income During the Next Twelve Months
|
(2)
|
(4)
|
(6)
|
||||||||
Impact of Cash Flow Hedges on the Condensed Balance Sheet
|
|||||||||||
December 31, 2012
|
|||||||||||
Interest Rate
|
|||||||||||
and Foreign
|
|||||||||||
Commodity
|
Currency
|
Total
|
|||||||||
(in millions)
|
|||||||||||
Hedging Assets (a)
|
$
|
24
|
$
|
-
|
$
|
24
|
|||||
Hedging Liabilities (a)
|
36
|
37
|
73
|
||||||||
AOCI Gain (Loss) Net of Tax
|
(8)
|
(30)
|
(38)
|
||||||||
Portion Expected to be Reclassified to Net
|
|||||||||||
Income During the Next Twelve Months
|
(8)
|
(4)
|
(12)
|
|
(a)
|
Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the condensed balance sheets.
|
June 30,
|
December 31,
|
||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Liabilities for Derivative Contracts with Credit Downgrade Triggers
|
$
|
4
|
$
|
7
|
|||
Amount of Collateral AEP Subsidiaries Would Have Been
|
|||||||
Required to Post
|
48
|
32
|
|||||
Amount Attributable to RTO and ISO Activities
|
47
|
31
|
June 30,
|
December 31,
|
|||||
2013
|
2012
|
|||||
(in millions)
|
||||||
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
|
||||||
Netting Arrangements
|
$
|
360
|
$
|
469
|
||
Amount of Cash Collateral Posted
|
3
|
8
|
||||
Additional Settlement Liability if Cross Default Provision is Triggered
|
252
|
328
|
June 30, 2013
|
December 31, 2012
|
|||||||||||
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
|||||||||
(in millions)
|
||||||||||||
Long-term Debt
|
$
|
17,618
|
$
|
19,509
|
$
|
17,757
|
$
|
20,907
|
June 30, 2013
|
||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||
Unrealized
|
Unrealized
|
Fair
|
||||||||||||
Other Temporary Investments
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||
(in millions)
|
||||||||||||||
Restricted Cash (a)
|
$
|
204
|
$
|
-
|
$
|
-
|
$
|
204
|
||||||
Fixed Income Securities:
|
||||||||||||||
Mutual Funds
|
76
|
-
|
-
|
76
|
||||||||||
Equity Securities - Mutual Funds
|
10
|
8
|
-
|
18
|
||||||||||
Total Other Temporary Investments
|
$
|
290
|
$
|
8
|
$
|
-
|
$
|
298
|
||||||
December 31, 2012
|
||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||
Unrealized
|
Unrealized
|
Fair
|
||||||||||||
Other Temporary Investments
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||
(in millions)
|
||||||||||||||
Restricted Cash (a)
|
$
|
241
|
$
|
-
|
$
|
-
|
$
|
241
|
||||||
Fixed Income Securities:
|
||||||||||||||
Mutual Funds
|
65
|
2
|
-
|
67
|
||||||||||
Equity Securities - Mutual Funds
|
10
|
6
|
-
|
16
|
||||||||||
Total Other Temporary Investments
|
$
|
316
|
$
|
8
|
$
|
-
|
$
|
324
|
||||||
(a)
|
Primarily represents amounts held for the repayment of debt.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions)
|
|||||||||||
Proceeds from Investment Sales
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||
Purchases of Investments
|
-
|
1
|
11
|
1
|
|||||||
Gross Realized Gains on Investment Sales
|
-
|
-
|
-
|
-
|
|||||||
Gross Realized Losses on Investment Sales
|
-
|
-
|
-
|
-
|
·
|
Acceptable investments (rated investment grade or above when purchased).
|
·
|
Maximum percentage invested in a specific type of investment.
|
·
|
Prohibition of investment in obligations of AEP or its affiliates.
|
·
|
Withdrawals permitted only for payment of decommissioning costs and trust expenses.
|
June 30, 2013
|
December 31, 2012
|
||||||||||||||||||
Estimated
|
Gross
|
Other-Than-
|
Estimated
|
Gross
|
Other-Than-
|
||||||||||||||
Fair
|
Unrealized
|
Temporary
|
Fair
|
Unrealized
|
Temporary
|
||||||||||||||
Value
|
Gains
|
Impairments
|
Value
|
Gains
|
Impairments
|
||||||||||||||
(in millions)
|
|||||||||||||||||||
Cash and Cash Equivalents
|
$
|
14
|
$
|
-
|
$
|
-
|
$
|
17
|
$
|
-
|
$
|
-
|
|||||||
Fixed Income Securities:
|
|||||||||||||||||||
United States Government
|
605
|
37
|
(2)
|
648
|
58
|
(1)
|
|||||||||||||
Corporate Debt
|
35
|
3
|
(2)
|
35
|
5
|
(1)
|
|||||||||||||
State and Local Government
|
262
|
-
|
(3)
|
270
|
1
|
(1)
|
|||||||||||||
Subtotal Fixed Income Securities
|
902
|
40
|
(7)
|
953
|
64
|
(3)
|
|||||||||||||
Equity Securities - Domestic
|
875
|
373
|
(82)
|
736
|
285
|
(77)
|
|||||||||||||
Spent Nuclear Fuel and
|
|||||||||||||||||||
Decommissioning Trusts
|
$
|
1,791
|
$
|
413
|
$
|
(89)
|
$
|
1,706
|
$
|
349
|
$
|
(80)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in millions)
|
|||||||||||
Proceeds from Investment Sales
|
$
|
217
|
$
|
183
|
$
|
385
|
$
|
517
|
|||
Purchases of Investments
|
227
|
192
|
412
|
545
|
|||||||
Gross Realized Gains on Investment Sales
|
9
|
3
|
12
|
5
|
|||||||
Gross Realized Losses on Investment Sales
|
8
|
1
|
10
|
2
|
Fair Value of
|
||
Fixed Income
|
||
Securities
|
||
(in millions)
|
||
Within 1 year
|
$
|
79
|
1 year – 5 years
|
340
|
|
5 years – 10 years
|
238
|
|
After 10 years
|
245
|
|
Total
|
$
|
902
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
June 30, 2013
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
||||||||||||
Assets:
|
(in millions)
|
|||||||||||||||
Cash and Cash Equivalents (a)
|
$
|
10
|
$
|
1
|
$
|
-
|
$
|
106
|
$
|
117
|
||||||
Other Temporary Investments
|
||||||||||||||||
Restricted Cash (a)
|
186
|
6
|
-
|
12
|
204
|
|||||||||||
Fixed Income Securities:
|
||||||||||||||||
Mutual Funds
|
76
|
-
|
-
|
-
|
76
|
|||||||||||
Equity Securities - Mutual Funds (b)
|
18
|
-
|
-
|
-
|
18
|
|||||||||||
Total Other Temporary Investments
|
280
|
6
|
-
|
12
|
298
|
|||||||||||
Risk Management Assets
|
||||||||||||||||
Risk Management Commodity Contracts (c) (d)
|
38
|
776
|
142
|
(479)
|
477
|
|||||||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (c)
|
4
|
28
|
-
|
(18)
|
14
|
|||||||||||
Fair Value Hedges
|
-
|
1
|
-
|
3
|
4
|
|||||||||||
De-designated Risk Management Contracts (e)
|
-
|
-
|
-
|
9
|
9
|
|||||||||||
Total Risk Management Assets
|
42
|
805
|
142
|
(485)
|
504
|
|||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||
Cash and Cash Equivalents (f)
|
3
|
-
|
-
|
11
|
14
|
|||||||||||
Fixed Income Securities:
|
||||||||||||||||
United States Government
|
-
|
605
|
-
|
-
|
605
|
|||||||||||
Corporate Debt
|
-
|
35
|
-
|
-
|
35
|
|||||||||||
State and Local Government
|
-
|
262
|
-
|
-
|
262
|
|||||||||||
Subtotal Fixed Income Securities
|
-
|
902
|
-
|
-
|
902
|
|||||||||||
Equity Securities - Domestic (b)
|
875
|
-
|
-
|
-
|
875
|
|||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
878
|
902
|
-
|
11
|
1,791
|
|||||||||||
Total Assets
|
$
|
1,210
|
$
|
1,714
|
$
|
142
|
$
|
(356)
|
$
|
2,710
|
||||||
Liabilities:
|
||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||
Risk Management Commodity Contracts (c) (d)
|
$
|
42
|
$
|
697
|
$
|
20
|
$
|
(497)
|
$
|
262
|
||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (c)
|
-
|
30
|
-
|
(18)
|
12
|
|||||||||||
Interest Rate/Foreign Currency Hedges
|
-
|
2
|
-
|
-
|
2
|
|||||||||||
Fair Value Hedges
|
-
|
13
|
-
|
3
|
16
|
|||||||||||
Total Risk Management Liabilities
|
$
|
42
|
$
|
742
|
$
|
20
|
$
|
(512)
|
$
|
292
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
||||||||||||
Assets:
|
(in millions)
|
|||||||||||||||
Cash and Cash Equivalents (a)
|
$
|
6
|
$
|
1
|
$
|
-
|
$
|
272
|
$
|
279
|
||||||
Other Temporary Investments
|
||||||||||||||||
Restricted Cash (a)
|
227
|
5
|
-
|
9
|
241
|
|||||||||||
Fixed Income Securities:
|
||||||||||||||||
Mutual Funds
|
67
|
-
|
-
|
-
|
67
|
|||||||||||
Equity Securities - Mutual Funds (b)
|
16
|
-
|
-
|
-
|
16
|
|||||||||||
Total Other Temporary Investments
|
310
|
5
|
-
|
9
|
324
|
|||||||||||
Risk Management Assets
|
||||||||||||||||
Risk Management Commodity Contracts (c) (g)
|
47
|
938
|
131
|
(599)
|
517
|
|||||||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (c)
|
8
|
28
|
-
|
(12)
|
24
|
|||||||||||
Fair Value Hedges
|
-
|
2
|
-
|
2
|
4
|
|||||||||||
De-designated Risk Management Contracts (e)
|
-
|
-
|
-
|
14
|
14
|
|||||||||||
Total Risk Management Assets
|
55
|
968
|
131
|
(595)
|
559
|
|||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||
Cash and Cash Equivalents (f)
|
7
|
-
|
-
|
10
|
17
|
|||||||||||
Fixed Income Securities:
|
||||||||||||||||
United States Government
|
-
|
648
|
-
|
-
|
648
|
|||||||||||
Corporate Debt
|
-
|
35
|
-
|
-
|
35
|
|||||||||||
State and Local Government
|
-
|
270
|
-
|
-
|
270
|
|||||||||||
Subtotal Fixed Income Securities
|
-
|
953
|
-
|
-
|
953
|
|||||||||||
Equity Securities - Domestic (b)
|
736
|
-
|
-
|
-
|
736
|
|||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
743
|
953
|
-
|
10
|
1,706
|
|||||||||||
Total Assets
|
$
|
1,114
|
$
|
1,927
|
$
|
131
|
$
|
(304)
|
$
|
2,868
|
||||||
Liabilities:
|
||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||
Risk Management Commodity Contracts (c) (g)
|
$
|
45
|
$
|
838
|
$
|
45
|
$
|
(636)
|
$
|
292
|
||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (c)
|
-
|
48
|
-
|
(12)
|
36
|
|||||||||||
Interest Rate/Foreign Currency Hedges
|
-
|
37
|
-
|
-
|
37
|
|||||||||||
Fair Value Hedges
|
-
|
2
|
-
|
2
|
4
|
|||||||||||
Total Risk Management Liabilities
|
$
|
45
|
$
|
925
|
$
|
45
|
$
|
(646)
|
$
|
369
|
(a)
|
Amounts in ''Other'' column primarily represent cash deposits in bank accounts with financial institutions or with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.
|
(b)
|
Amounts represent publicly traded equity securities and equity-based mutual funds.
|
(c)
|
Amounts in ''Other'' column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for ''Derivatives and Hedging.''
|
(d)
|
The June 30, 2013 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $3 million in 2013, ($3) million in periods 2014-2016 and ($4) million in periods 2017-2018; Level 2 matures $12 million in 2013, $53 million in periods 2014-2016, $8 million in periods 2017-2018 and $6 million in periods 2019-2030; Level 3 matures $19 million in 2013, $50 million in periods 2014-2016, $30 million in periods 2017-2018 and $23 million in periods 2019-2030. Risk management commodity contracts are substantially comprised of power contracts.
|
(e)
|
Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for ''Derivatives and Hedging.'' At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.
|
(f)
|
Amounts in ''Other'' column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.
|
(g)
|
The December 31, 2012 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $9 million in 2013, ($3) million in periods 2014-2016 and ($4) million in periods 2017-2018; Level 2 matures $16 million in 2013, $61 million in periods 2014-2016, $16 million in periods 2017-2018 and $7 million in periods 2019-2030; Level 3 matures $18 million in 2013, $31 million in periods 2014-2016, $13 million in periods 2017-2018 and $24 million in periods 2019-2030. Risk management commodity contracts are substantially comprised of power contracts.
|
Net Risk Management
|
||||
Three Months Ended June 30, 2013
|
Assets (Liabilities)
|
|||
(in millions)
|
||||
Balance as of March 31, 2013
|
$
|
76
|
||
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
(1)
|
|||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
||||
Relating to Assets Still Held at the Reporting Date (a)
|
26
|
|||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
(1)
|
|||
Purchases, Issuances and Settlements (c)
|
(2)
|
|||
Transfers into Level 3 (d) (e)
|
12
|
|||
Transfers out of Level 3 (e) (f)
|
1
|
|||
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
11
|
|||
Balance as of June 30, 2013
|
$
|
122
|
Net Risk Management
|
||||
Three Months Ended June 30, 2012
|
Assets (Liabilities)
|
|||
(in millions)
|
||||
Balance as of March 31, 2012
|
$
|
92
|
||
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
(11)
|
|||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
||||
Relating to Assets Still Held at the Reporting Date (a)
|
4
|
|||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
-
|
|||
Purchases, Issuances and Settlements (c)
|
15
|
|||
Transfers into Level 3 (d) (e)
|
(1)
|
|||
Transfers out of Level 3 (e) (f)
|
(8)
|
|||
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
6
|
|||
Balance as of June 30, 2012
|
$
|
97
|
Net Risk Management
|
||||
Six Months Ended June 30, 2013
|
Assets (Liabilities)
|
|||
(in millions)
|
||||
Balance as of December 31, 2012
|
$
|
86
|
||
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
(12)
|
|||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
||||
Relating to Assets Still Held at the Reporting Date (a)
|
22
|
|||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
-
|
|||
Purchases, Issuances and Settlements (c)
|
(1)
|
|||
Transfers into Level 3 (d) (e)
|
18
|
|||
Transfers out of Level 3 (e) (f)
|
1
|
|||
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
8
|
|||
Balance as of June 30, 2013
|
$
|
122
|
Net Risk Management
|
||||
Six Months Ended June 30, 2012
|
Assets (Liabilities)
|
|||
(in millions)
|
||||
Balance as of December 31, 2011
|
$
|
69
|
||
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
(17)
|
|||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)
|
||||
Relating to Assets Still Held at the Reporting Date (a)
|
5
|
|||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
-
|
|||
Purchases, Issuances and Settlements (c)
|
33
|
|||
Transfers into Level 3 (d) (e)
|
14
|
|||
Transfers out of Level 3 (e) (f)
|
(20)
|
|||
Changes in Fair Value Allocated to Regulated Jurisdictions (g)
|
13
|
|||
Balance as of June 30, 2012
|
$
|
97
|
|
(a)
|
Included in revenues on the condensed statements of income.
|
|
(b)
|
Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
|
|
(c)
|
Represents the settlement of risk management commodity contracts for the reporting period.
|
|
(d)
|
Represents existing assets or liabilities that were previously categorized as Level 2.
|
|
(e)
|
Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
|
|
(f)
|
Represents existing assets or liabilities that were previously categorized as Level 3.
|
|
(g)
|
Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
Fair Value
|
Valuation
|
Significant
|
Input/Range
|
|||||||||||||
Assets
|
Liabilities
|
Technique
|
Unobservable Input
|
Low
|
High
|
|||||||||||
(in millions)
|
||||||||||||||||
Energy Contracts
|
$
|
128
|
$
|
16
|
Discounted Cash Flow
|
Forward Market Price (a)
|
$
|
10.17
|
$
|
140.98
|
||||||
Counterparty Credit Risk (b)
|
356
|
|||||||||||||||
FTRs
|
14
|
4
|
Discounted Cash Flow
|
Forward Market Price (a)
|
(26.98)
|
11.19
|
||||||||||
Total
|
$
|
142
|
$
|
20
|
|
(a)
|
Represents market prices in dollars per MWh.
|
|
(b)
|
Represents average price of credit default swaps used to calculate counterparty credit risk, reported in basis points.
|
Type of Debt
|
June 30, 2013
|
December 31, 2012
|
||||
(in millions)
|
||||||
Senior Unsecured Notes
|
$
|
12,458
|
$
|
12,712
|
||
Pollution Control Bonds
|
1,982
|
1,958
|
||||
Notes Payable
|
462
|
427
|
||||
Securitization Bonds
|
2,150
|
2,281
|
||||
Spent Nuclear Fuel Obligation (a)
|
265
|
265
|
||||
Other Long-term Debt
|
338
|
140
|
||||
Fair Value of Interest Rate Hedges
|
(10)
|
3
|
||||
Unamortized Discount, Net
|
(27)
|
(29)
|
||||
Total Long-term Debt Outstanding
|
17,618
|
17,757
|
||||
Long-term Debt Due Within One Year
|
1,819
|
2,171
|
||||
Long-term Debt
|
$
|
15,799
|
$
|
15,586
|
|
(a)
|
Pursuant to the Nuclear Waste Policy Act of 1982, I&M, a nuclear licensee, has an obligation to the United States Department of Energy for spent nuclear fuel disposal. The obligation includes a one-time fee for nuclear fuel consumed prior to April 7, 1983. Trust fund assets related to this obligation were $308 million and $308 million as of June 30, 2013 and December 31, 2012, respectively, and are included in Spent Nuclear Fuel and Decommissioning Trusts on our condensed balance sheets.
|
Principal
|
Interest
|
||||||||||
Company
|
Type of Debt
|
Amount
|
Rate
|
Due Date
|
|||||||
Issuances:
|
(in millions)
|
(%)
|
|||||||||
AEP
|
Other Long-term Debt
|
$
|
200
|
(a)
|
Variable
|
2015
|
|||||
I&M
|
Senior Unsecured Notes
|
250
|
3.20
|
2023
|
|||||||
I&M
|
Notes Payable
|
101
|
Variable
|
2017
|
|||||||
OPCo
|
Pollution Control Bonds
|
50
|
Variable
|
2014
|
|||||||
Non-Registrant:
|
|||||||||||
AEPTCo
|
Senior Unsecured Notes
|
25
|
4.83
|
2043
|
|||||||
TCC
|
Pollution Control Bonds
|
120
|
4.00
|
2030
|
|||||||
TNC
|
Senior Unsecured Notes
|
125
|
3.09
|
2023
|
|||||||
TNC
|
Senior Unsecured Notes
|
75
|
4.48
|
2043
|
|||||||
Total Issuances
|
$
|
946
|
(b)
|
|
(a)
|
Draw on a $1 billion term credit facility due in May 2015.
|
|
(b)
|
Amount indicated on the statement of cash flows is net of issuance costs and premium or discount and will not tie to the total issuances.
|
Principal
|
Interest
|
||||||||||
Company
|
Type of Debt
|
Amount Paid
|
Rate
|
Due Date
|
|||||||
Retirements and
|
(in millions)
|
(%)
|
|||||||||
Principal Payments:
|
|||||||||||
I&M
|
Notes Payable
|
$
|
6
|
5.44
|
2013
|
||||||
I&M
|
Notes Payable
|
10
|
4.00
|
2014
|
|||||||
I&M
|
Notes Payable
|
8
|
Variable
|
2015
|
|||||||
I&M
|
Notes Payable
|
10
|
Variable
|
2016
|
|||||||
I&M
|
Notes Payable
|
7
|
2.12
|
2016
|
|||||||
I&M
|
Notes Payable
|
21
|
Variable
|
2016
|
|||||||
I&M
|
Pollution Control Bonds
|
40
|
5.25
|
2025
|
|||||||
I&M
|
Other Long-term Debt
|
2
|
Variable
|
2015
|
|||||||
OPCo
|
Senior Unsecured Notes
|
250
|
5.50
|
2013
|
|||||||
OPCo
|
Senior Unsecured Notes
|
250
|
5.50
|
2013
|
|||||||
OPCo
|
Pollution Control Bonds
|
56
|
5.10
|
2013
|
|||||||
OPCo
|
Pollution Control Bonds
|
50
|
5.15
|
2026
|
|||||||
SWEPCo
|
Notes Payable
|
1
|
4.58
|
2032
|
|||||||
Non-Registrant:
|
|||||||||||
AEP Subsidiaries
|
Notes Payable
|
1
|
Variable
|
2017
|
|||||||
AEP Subsidiaries
|
Notes Payable
|
1
|
7.59 - 8.03
|
2026
|
|||||||
AEGCo
|
Senior Unsecured Notes
|
4
|
6.33
|
2037
|
|||||||
TCC
|
Securitization Bonds
|
67
|
4.98
|
2013
|
|||||||
TCC
|
Securitization Bonds
|
38
|
5.96
|
2013
|
|||||||
TCC
|
Securitization Bonds
|
26
|
0.88
|
2017
|
|||||||
TNC
|
Senior Unsecured Notes
|
225
|
5.50
|
2013
|
|||||||
Total Retirements and
|
|||||||||||
Principal Payments
|
$
|
1,073
|
June 30, 2013
|
December 31, 2012
|
||||||||||||
Outstanding
|
Interest
|
Outstanding
|
Interest
|
||||||||||
Type of Debt
|
Amount
|
Rate (a)
|
Amount
|
Rate (a)
|
|||||||||
(in millions)
|
(in millions)
|
||||||||||||
Securitized Debt for Receivables (b)
|
$
|
688
|
0.23
|
%
|
$
|
657
|
0.26
|
%
|
|||||
Commercial Paper
|
850
|
0.32
|
%
|
321
|
0.42
|
%
|
|||||||
Line of Credit – Sabine (c)
|
-
|
-
|
%
|
3
|
1.82
|
%
|
|||||||
Total Short-term Debt
|
$
|
1,538
|
$
|
981
|
|
(a)
|
Weighted average rate.
|
|
(b)
|
Amount of securitized debt for receivables as accounted for under the ''Transfers and Servicing'' accounting guidance.
|
|
(c)
|
This line of credit does not reduce available liquidity under AEP's credit facilities.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
(dollars in millions)
|
||||||||||||||
Effective Interest Rates on Securitization of
|
||||||||||||||
Accounts Receivable
|
0.22
|
%
|
0.26
|
%
|
0.23
|
%
|
0.26
|
%
|
||||||
Net Uncollectible Accounts Receivable
|
||||||||||||||
Written Off
|
$
|
7
|
$
|
6
|
$
|
14
|
$
|
14
|
June 30,
|
December 31,
|
||||||
2013
|
2012
|
||||||
(in millions)
|
|||||||
Accounts Receivable Retained Interest and Pledged as Collateral
|
|||||||
Less Uncollectible Accounts
|
$
|
954
|
$
|
835
|
|||
Total Principal Outstanding
|
688
|
657
|
|||||
Delinquent Securitized Accounts Receivable
|
45
|
37
|
|||||
Bad Debt Reserves Related to Securitization/Sale of Accounts Receivable
|
21
|
21
|
|||||
Unbilled Receivables Related to Securitization/Sale of Accounts Receivable
|
369
|
316
|
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
||||||||||||||||
VARIABLE INTEREST ENTITIES
|
||||||||||||||||
June 30, 2013
|
||||||||||||||||
(in millions)
|
||||||||||||||||
TCC
|
||||||||||||||||
SWEPCo
|
I&M
|
Transition
|
Protected Cell
|
|||||||||||||
Sabine
|
DCC Fuel
|
AEP Credit
|
Funding
|
of EIS
|
||||||||||||
ASSETS
|
||||||||||||||||
Current Assets
|
$
|
66
|
$
|
161
|
$
|
963
|
$
|
221
|
$
|
136
|
||||||
Net Property, Plant and Equipment
|
163
|
219
|
-
|
-
|
-
|
|||||||||||
Other Noncurrent Assets
|
66
|
104
|
-
|
2,060
|
(a)
|
5
|
||||||||||
Total Assets
|
$
|
295
|
$
|
484
|
$
|
963
|
$
|
2,281
|
$
|
141
|
||||||
LIABILITIES AND EQUITY
|
||||||||||||||||
Current Liabilities
|
$
|
31
|
$
|
143
|
$
|
904
|
$
|
307
|
$
|
42
|
||||||
Noncurrent Liabilities
|
264
|
341
|
1
|
1,956
|
68
|
|||||||||||
Equity
|
-
|
-
|
58
|
18
|
31
|
|||||||||||
Total Liabilities and Equity
|
$
|
295
|
$
|
484
|
$
|
963
|
$
|
2,281
|
$
|
141
|
||||||
(a) Includes an intercompany item eliminated in consolidation of $86 million. |
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
|
|||||||||||||||
VARIABLE INTEREST ENTITIES
|
|||||||||||||||
December 31, 2012
|
|||||||||||||||
(in millions)
|
|||||||||||||||
TCC
|
|||||||||||||||
SWEPCo
|
I&M
|
Transition
|
Protected Cell
|
||||||||||||
Sabine
|
DCC Fuel
|
AEP Credit
|
Funding
|
of EIS
|
|||||||||||
ASSETS
|
|||||||||||||||
Current Assets
|
$
|
57
|
$
|
133
|
$
|
843
|
$
|
250
|
$
|
130
|
|||||
Net Property, Plant and Equipment
|
170
|
176
|
-
|
-
|
-
|
||||||||||
Other Noncurrent Assets
|
55
|
92
|
1
|
2,167
|
(a)
|
4
|
|||||||||
Total Assets
|
$
|
282
|
$
|
401
|
$
|
844
|
$
|
2,417
|
$
|
134
|
|||||
LIABILITIES AND EQUITY
|
|||||||||||||||
Current Liabilities
|
$
|
32
|
$
|
121
|
$
|
800
|
$
|
304
|
$
|
43
|
|||||
Noncurrent Liabilities
|
250
|
280
|
1
|
2,095
|
66
|
||||||||||
Equity
|
-
|
-
|
43
|
18
|
25
|
||||||||||
Total Liabilities and Equity
|
$
|
282
|
$
|
401
|
$
|
844
|
$
|
2,417
|
$
|
134
|
|||||
(a) Includes an intercompany item eliminated in consolidation of $89 million. |
June 30, 2013
|
December 31, 2012
|
|||||||||||
As Reported on
|
Maximum
|
As Reported on
|
Maximum
|
|||||||||
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
Exposure
|
|||||||||
(in millions)
|
||||||||||||
Capital Contribution from SWEPCo
|
$
|
8
|
$
|
8
|
$
|
8
|
$
|
8
|
||||
Retained Earnings
|
1
|
1
|
1
|
1
|
||||||||
SWEPCo's Guarantee of Debt
|
-
|
50
|
-
|
49
|
||||||||
Total Investment in DHLC
|
$
|
9
|
$
|
59
|
$
|
9
|
$
|
58
|
June 30, 2013
|
December 31, 2012
|
|||||||||||
As Reported on
|
Maximum
|
As Reported on
|
Maximum
|
|||||||||
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
Exposure
|
|||||||||
(in millions)
|
||||||||||||
Capital Contribution from AEP
|
$
|
19
|
$
|
19
|
$
|
19
|
$
|
19
|
||||
Retained Earnings
|
13
|
13
|
12
|
12
|
||||||||
Total Investment in PATH-WV
|
$
|
32
|
$
|
32
|
$
|
31
|
$
|
31
|
Sustainable Cost
|
|||
Reduction Activity
|
|||
(in millions)
|
|||
Balance as of December 31, 2012
|
$
|
25
|
|
Incurred
|
16
|
||
Settled
|
(29)
|
||
Adjustments
|
(6)
|
||
Balance as of June 30, 2013
|
$
|
6
|
RESULTS OF OPERATIONS
|
|||||||||||||
KWh Sales/Degree Days
|
|||||||||||||
Summary of KWh Energy Sales
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in millions of KWhs)
|
|||||||||||||
Retail:
|
|||||||||||||
Residential
|
2,256
|
2,184
|
6,257
|
5,634
|
|||||||||
Commercial
|
1,617
|
1,683
|
3,359
|
3,309
|
|||||||||
Industrial
|
2,655
|
2,702
|
5,243
|
5,306
|
|||||||||
Miscellaneous
|
198
|
201
|
415
|
402
|
|||||||||
Total Retail (a)
|
6,726
|
6,770
|
15,274
|
14,651
|
|||||||||
Wholesale
|
1,788
|
1,492
|
4,069
|
2,873
|
|||||||||
Total KWhs
|
8,514
|
8,262
|
19,343
|
17,524
|
|||||||||
(a)
|
Represents energy delivered to distribution customers.
|
Summary of Heating and Cooling Degree Days
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in degree days)
|
|||||||||||||
Actual - Heating (a)
|
92
|
61
|
1,497
|
983
|
|||||||||
Normal - Heating (b)
|
93
|
97
|
1,405
|
1,440
|
|||||||||
Actual - Cooling (c)
|
388
|
419
|
388
|
444
|
|||||||||
Normal - Cooling (b)
|
360
|
354
|
367
|
360
|
|||||||||
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
||||||||||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
||||||||||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
Second Quarter of 2013 Compared to Second Quarter of 2012
|
||||||||
Reconciliation of Second Quarter of 2012 to Second Quarter of 2013
|
||||||||
Net Income
|
||||||||
(in millions)
|
||||||||
Second Quarter of 2012
|
$
|
62
|
||||||
Changes in Gross Margin:
|
||||||||
Retail Margins
|
(26)
|
|||||||
Off-system Sales
|
(1)
|
|||||||
Transmission Revenues
|
2
|
|||||||
Other Revenues
|
3
|
|||||||
Total Change in Gross Margin
|
(22)
|
|||||||
Changes in Expenses and Other:
|
||||||||
Other Operation and Maintenance
|
(28)
|
|||||||
Depreciation and Amortization
|
2
|
|||||||
Taxes Other Than Income Taxes
|
(3)
|
|||||||
Carrying Costs Income
|
(2)
|
|||||||
Other Income
|
2
|
|||||||
Interest Expense
|
4
|
|||||||
Total Change in Expenses and Other
|
(25)
|
|||||||
Income Tax Expense
|
15
|
|||||||
Second Quarter of 2013
|
$
|
30
|
·
|
Retail Margins decreased $26 million primarily due to the following:
|
|
·
|
A $9 million deferral of additional wind purchase costs in the second quarter of 2012 as a result of the June 2012 Virginia SCC fuel factor order.
|
|
·
|
A $6 million net decrease in rates primarily due to the expiration of the Virginia Environmental Rate Adjustment Clause in March 2013.
|
|
·
|
A $4 million decrease in revenues due to a 0.5% decrease in weather-normalized retail sales.
|
·
|
Other Operation and Maintenance expenses increased $28 million primarily due to the following:
|
||
·
|
A $10 million increase in distribution maintenance expense primarily due to the June 2013 storms.
|
||
·
|
A $5 million increase in generation plant maintenance expenses due to Mountaineer Plant routine outages in 2013.
|
||
·
|
A $5 million increase in provisions for uncollectible accounts.
|
||
·
|
A $4 million increase in transmission expenses due to higher Network Integration Transmission Service (NITS) expenses. These expenses are offset in Transmission Revenues.
|
||
·
|
A $3 million increase due to the change in the recovery position of transmission costs for the Virginia Transmission Rate Adjustment Clause as allowed by the Virginia SCC.
|
||
·
|
Taxes Other Than Income Taxes expenses increased $3 million primarily due to an increase in the Virginia State Minimum Tax accrual and an increase in real and personal property tax amortization.
|
||
·
|
Interest Expense decreased $4 million primarily due to lower long-term interest rates.
|
||
·
|
Income Tax Expense decreased $15 million primarily due to a decrease in pretax book income.
|
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012
|
||||||||||
Reconciliation of Six Months Ended June 30, 2012 to Six Months Ended June 30, 2013
|
||||||||||
Net Income
|
||||||||||
(in millions)
|
||||||||||
Six Months Ended June 30, 2012
|
$
|
138
|
||||||||
Changes in Gross Margin:
|
||||||||||
Retail Margins
|
35
|
|||||||||
Off-system Sales
|
(2)
|
|||||||||
Transmission Revenues
|
4
|
|||||||||
Other Revenues
|
1
|
|||||||||
Total Change in Gross Margin
|
38
|
|||||||||
Changes in Expenses and Other:
|
||||||||||
Other Operation and Maintenance
|
(86)
|
|||||||||
Depreciation and Amortization
|
(6)
|
|||||||||
Taxes Other Than Income Taxes
|
(3)
|
|||||||||
Carrying Costs Income
|
(10)
|
|||||||||
Other Income
|
3
|
|||||||||
Interest Expense
|
7
|
|||||||||
Total Change in Expenses and Other
|
(95)
|
|||||||||
Income Tax Expense
|
19
|
|||||||||
Six Months Ended June 30, 2013
|
$
|
100
|
·
|
Retail Margins increased $35 million primarily due to the following:
|
|
·
|
A $37 million increase in weather-related usage primarily due to a 52% increase in heating degree days.
|
|
·
|
A $21 million increase due to higher rates in Virginia and West Virginia. For this increase, $7 million have a corresponding increase in Depreciation and Amortization expenses below.
|
|
These increases were partially offset by:
|
||
·
|
A $13 million increase in other variable electric generation expenses.
|
|
·
|
A $9 million deferral of additional wind purchase costs in the second quarter of 2012 as a result of the June 2012 Virginia SCC fuel factor order.
|
·
|
Other Operation and Maintenance expenses increased $86 million primarily due to the following:
|
||
·
|
A $30 million write-off in the first quarter of 2013 of previously deferred 2012 Virginia storm costs resulting from the 2013 enactment of a Virginia law.
|
||
·
|
A $25 million increase in distribution maintenance expense primarily due to storms in January and June 2013.
|
||
·
|
An $11 million increase in generation plant maintenance expenses due to Mountaineer Plant routine outages in 2013.
|
||
·
|
Depreciation and Amortization expenses increased $6 million primarily due to the following:
|
||
·
|
A $3 million increase as a result of increased depreciation rates in Virginia effective February 2012. The majority of this increase in depreciation is offset within Gross Margin.
|
||
·
|
A $3 million increase as a result of the Dresden Plant being placed in service in late January 2012.
|
||
·
|
Taxes Other Than Income Taxes expenses increased $3 million primarily due to an increase in the Virginia State Minimum Tax accrual and an increase in real and personal property tax amortization.
|
·
|
Carrying Costs Income decreased $10 million primarily due to an increased recovery of Virginia environmental costs in new base rates as approved by the Virginia SCC in late January 2012 and decreased carrying charges related to Dresden Plant.
|
||
·
|
Other Income increased $3 million primarily due to the following:
|
||
·
|
A $1 million increase in equity AFUDC.
|
||
·
|
A $1 million increase in interest income related to the 2009-2010 federal income tax audit.
|
||
·
|
Interest Expense decreased $7 million primarily due to lower long-term interest rates.
|
||
·
|
Income Tax Expense decreased $19 million primarily due to a decrease in pretax book income.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
||||||||||||||
(in thousands)
|
||||||||||||||
(Unaudited)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
REVENUES
|
||||||||||||||
Electric Generation, Transmission and Distribution
|
$
|
670,249
|
$
|
647,236
|
$
|
1,542,981
|
$
|
1,385,835
|
||||||
Sales to AEP Affiliates
|
73,893
|
67,043
|
150,753
|
131,344
|
||||||||||
Other Revenues
|
2,362
|
2,182
|
4,264
|
4,758
|
||||||||||
TOTAL REVENUES
|
746,504
|
716,461
|
1,697,998
|
1,521,937
|
||||||||||
EXPENSES
|
||||||||||||||
Fuel and Other Consumables Used for Electric Generation
|
163,521
|
181,653
|
368,460
|
368,537
|
||||||||||
Purchased Electricity for Resale
|
59,487
|
44,869
|
124,943
|
110,225
|
||||||||||
Purchased Electricity from AEP Affiliates
|
181,856
|
125,864
|
404,798
|
281,881
|
||||||||||
Other Operation
|
79,764
|
72,685
|
158,672
|
147,004
|
||||||||||
Maintenance
|
58,560
|
37,830
|
157,946
|
84,165
|
||||||||||
Depreciation and Amortization
|
83,240
|
85,139
|
171,143
|
165,552
|
||||||||||
Taxes Other Than Income Taxes
|
28,004
|
24,995
|
55,404
|
51,957
|
||||||||||
TOTAL EXPENSES
|
654,432
|
573,035
|
1,441,366
|
1,209,321
|
||||||||||
OPERATING INCOME
|
92,072
|
143,426
|
256,632
|
312,616
|
||||||||||
Other Income (Expense):
|
||||||||||||||
Interest Income
|
1,469
|
359
|
1,800
|
702
|
||||||||||
Carrying Costs Income
|
3,133
|
5,467
|
3,236
|
13,252
|
||||||||||
Allowance for Equity Funds Used During Construction
|
1,213
|
4
|
1,983
|
517
|
||||||||||
Interest Expense
|
(48,128)
|
(51,945)
|
(96,332)
|
(103,252)
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
49,759
|
97,311
|
167,319
|
223,835
|
||||||||||
Income Tax Expense
|
19,897
|
34,979
|
66,909
|
86,192
|
||||||||||
NET INCOME
|
$
|
29,862
|
$
|
62,332
|
$
|
100,410
|
$
|
137,643
|
||||||
The common stock of APCo is wholly-owned by AEP.
|
||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in thousands)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Net Income
|
$
|
29,862
|
$
|
62,332
|
$
|
100,410
|
$
|
137,643
|
|||||
OTHER COMPREHENSIVE INCOME, NET OF TAXES
|
|||||||||||||
Cash Flow Hedges, Net of Tax of $48 and $305 for the Three Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively, and $725 and $15 for the Six
|
|||||||||||||
Months Ended June 30, 2013 and 2012, Respectively
|
89
|
566
|
1,347
|
27
|
|||||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $193
|
|||||||||||||
and $484 for the Three Months Ended June 30, 2013 and 2012,
|
|||||||||||||
Respectively, and $386 and $969 for the Six Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively
|
358
|
899
|
716
|
1,799
|
|||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
447
|
1,465
|
2,063
|
1,826
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
30,309
|
$
|
63,797
|
$
|
102,473
|
$
|
139,469
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
Accumulated
|
||||||||||||||||||
Other
|
||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||||
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
||||||||||||||||||
DECEMBER 31, 2011
|
$
|
260,458
|
$
|
1,573,752
|
$
|
1,160,747
|
$
|
(58,543)
|
$
|
2,936,414
|
||||||||
Common Stock Dividends
|
(100,000)
|
(100,000)
|
||||||||||||||||
Net Income
|
137,643
|
137,643
|
||||||||||||||||
Other Comprehensive Income
|
1,826
|
1,826
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
||||||||||||||||||
JUNE 30, 2012
|
$
|
260,458
|
$
|
1,573,752
|
$
|
1,198,390
|
$
|
(56,717)
|
$
|
2,975,883
|
||||||||
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
||||||||||||||||||
DECEMBER 31, 2012
|
$
|
260,458
|
$
|
1,573,752
|
$
|
1,248,250
|
$
|
(29,898)
|
$
|
3,052,562
|
||||||||
Common Stock Dividends
|
(90,000)
|
(90,000)
|
||||||||||||||||
Net Income
|
100,410
|
100,410
|
||||||||||||||||
Other Comprehensive Income
|
2,063
|
2,063
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S EQUITY –
|
||||||||||||||||||
JUNE 30, 2013
|
$
|
260,458
|
$
|
1,573,752
|
$
|
1,258,660
|
$
|
(27,835)
|
$
|
3,065,035
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
ASSETS
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
CURRENT ASSETS
|
|||||||||
Cash and Cash Equivalents
|
$
|
2,735
|
$
|
3,576
|
|||||
Advances to Affiliates
|
23,303
|
23,024
|
|||||||
Accounts Receivable:
|
|||||||||
Customers
|
145,730
|
158,380
|
|||||||
Affiliated Companies
|
58,353
|
96,213
|
|||||||
Accrued Unbilled Revenues
|
44,839
|
70,825
|
|||||||
Miscellaneous
|
2,177
|
1,344
|
|||||||
Allowance for Uncollectible Accounts
|
(2,656)
|
(6,087)
|
|||||||
Total Accounts Receivable
|
248,443
|
320,675
|
|||||||
Fuel
|
218,577
|
185,813
|
|||||||
Materials and Supplies
|
108,522
|
105,208
|
|||||||
Risk Management Assets
|
28,520
|
30,960
|
|||||||
Accrued Tax Benefits
|
37,354
|
50,032
|
|||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
62,849
|
74,906
|
|||||||
Prepayments and Other Current Assets
|
16,262
|
18,690
|
|||||||
TOTAL CURRENT ASSETS
|
746,565
|
812,884
|
|||||||
PROPERTY, PLANT AND EQUIPMENT
|
|||||||||
Electric:
|
|||||||||
Generation
|
5,678,562
|
5,632,665
|
|||||||
Transmission
|
2,053,457
|
2,042,144
|
|||||||
Distribution
|
3,049,503
|
2,991,898
|
|||||||
Other Property, Plant and Equipment
|
380,863
|
373,327
|
|||||||
Construction Work in Progress
|
241,215
|
266,247
|
|||||||
Total Property, Plant and Equipment
|
11,403,600
|
11,306,281
|
|||||||
Accumulated Depreciation and Amortization
|
3,263,771
|
3,196,639
|
|||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
8,139,829
|
8,109,642
|
|||||||
OTHER NONCURRENT ASSETS
|
|||||||||
Regulatory Assets
|
1,364,541
|
1,435,704
|
|||||||
Long-term Risk Management Assets
|
23,608
|
34,360
|
|||||||
Deferred Charges and Other Noncurrent Assets
|
109,465
|
115,078
|
|||||||
TOTAL OTHER NONCURRENT ASSETS
|
1,497,614
|
1,585,142
|
|||||||
TOTAL ASSETS
|
$
|
10,384,008
|
$
|
10,507,668
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
|||||||||
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||
CURRENT LIABILITIES
|
|||||||||
Advances from Affiliates
|
$
|
87,783
|
$
|
173,965
|
|||||
Accounts Payable:
|
|||||||||
General
|
150,500
|
195,203
|
|||||||
Affiliated Companies
|
99,096
|
137,088
|
|||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
574,681
|
574,679
|
|||||||
Risk Management Liabilities
|
13,397
|
16,698
|
|||||||
Customer Deposits
|
65,999
|
67,339
|
|||||||
Deferred Income Taxes
|
8,388
|
11,715
|
|||||||
Accrued Taxes
|
80,347
|
74,967
|
|||||||
Accrued Interest
|
51,207
|
51,442
|
|||||||
Other Current Liabilities
|
97,782
|
110,657
|
|||||||
TOTAL CURRENT LIABILITIES
|
1,229,180
|
1,413,753
|
|||||||
NONCURRENT LIABILITIES
|
|||||||||
Long-term Debt – Nonaffiliated
|
3,128,078
|
3,127,763
|
|||||||
Long-term Risk Management Liabilities
|
14,007
|
18,476
|
|||||||
Deferred Income Taxes
|
1,968,214
|
1,928,683
|
|||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
623,394
|
607,680
|
|||||||
Employee Benefits and Pension Obligations
|
202,114
|
204,207
|
|||||||
Deferred Credits and Other Noncurrent Liabilities
|
153,986
|
154,544
|
|||||||
TOTAL NONCURRENT LIABILITIES
|
6,089,793
|
6,041,353
|
|||||||
TOTAL LIABILITIES
|
7,318,973
|
7,455,106
|
|||||||
Rate Matters (Note 3)
|
|||||||||
Commitments and Contingencies (Note 4)
|
|||||||||
COMMON SHAREHOLDER’S EQUITY
|
|||||||||
Common Stock – No Par Value:
|
|||||||||
Authorized – 30,000,000 Shares
|
|||||||||
Outstanding – 13,499,500 Shares
|
260,458
|
260,458
|
|||||||
Paid-in Capital
|
1,573,752
|
1,573,752
|
|||||||
Retained Earnings
|
1,258,660
|
1,248,250
|
|||||||
Accumulated Other Comprehensive Income (Loss)
|
(27,835)
|
(29,898)
|
|||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
3,065,035
|
3,052,562
|
|||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
$
|
10,384,008
|
$
|
10,507,668
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
Six Months Ended June 30,
|
|||||||||
2013
|
2012
|
||||||||
OPERATING ACTIVITIES
|
|||||||||
Net Income
|
$
|
100,410
|
$
|
137,643
|
|||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|||||||||
Depreciation and Amortization
|
171,143
|
165,552
|
|||||||
Deferred Income Taxes
|
42,158
|
56,927
|
|||||||
Carrying Costs Income
|
(3,236)
|
(13,252)
|
|||||||
Allowance for Equity Funds Used During Construction
|
(1,983)
|
(517)
|
|||||||
Mark-to-Market of Risk Management Contracts
|
6,765
|
(2,323)
|
|||||||
Fuel Over/Under-Recovery, Net
|
25,919
|
26,417
|
|||||||
Change in Other Noncurrent Assets
|
35,219
|
(16,708)
|
|||||||
Change in Other Noncurrent Liabilities
|
9,670
|
18,266
|
|||||||
Changes in Certain Components of Working Capital:
|
|||||||||
Accounts Receivable, Net
|
73,280
|
103,680
|
|||||||
Fuel, Materials and Supplies
|
(36,078)
|
(54,954)
|
|||||||
Accounts Payable
|
(57,034)
|
(43,538)
|
|||||||
Accrued Taxes, Net
|
18,058
|
30,032
|
|||||||
Other Current Assets
|
1,621
|
2,579
|
|||||||
Other Current Liabilities
|
(14,440)
|
(15,880)
|
|||||||
Net Cash Flows from Operating Activities
|
371,472
|
393,924
|
|||||||
INVESTING ACTIVITIES
|
|||||||||
Construction Expenditures
|
(194,200)
|
(212,959)
|
|||||||
Change in Advances to Affiliates, Net
|
(279)
|
(565)
|
|||||||
Other Investing Activities
|
(108)
|
3,158
|
|||||||
Net Cash Flows Used for Investing Activities
|
(194,587)
|
(210,366)
|
|||||||
FINANCING ACTIVITIES
|
|||||||||
Change in Advances from Affiliates, Net
|
(86,182)
|
(31,260)
|
|||||||
Retirement of Long-term Debt – Nonaffiliated
|
(14)
|
(49,512)
|
|||||||
Principal Payments for Capital Lease Obligations
|
(2,623)
|
(3,258)
|
|||||||
Dividends Paid on Common Stock
|
(90,000)
|
(100,000)
|
|||||||
Other Financing Activities
|
1,093
|
264
|
|||||||
Net Cash Flows Used for Financing Activities
|
(177,726)
|
(183,766)
|
|||||||
Net Decrease in Cash and Cash Equivalents
|
(841)
|
(208)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
3,576
|
2,317
|
|||||||
Cash and Cash Equivalents at End of Period
|
$
|
2,735
|
$
|
2,109
|
|||||
SUPPLEMENTARY INFORMATION
|
|||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$
|
92,994
|
$
|
100,319
|
|||||
Net Cash Paid (Received) for Income Taxes
|
425
|
(10,090)
|
|||||||
Noncash Acquisitions Under Capital Leases
|
2,422
|
1,265
|
|||||||
Construction Expenditures Included in Current Liabilities as of June 30,
|
34,114
|
30,439
|
|||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
Page
|
|
Number
|
|
Significant Accounting Matters
|
154 |
Comprehensive Income
|
154 |
Rate Matters
|
168 |
Commitments, Guarantees and Contingencies
|
178 |
Benefit Plans
|
183 |
Business Segments
|
185 |
Derivatives and Hedging
|
186 |
Fair Value Measurements
|
199 |
Income Taxes
|
211 |
Financing Activities
|
212 |
Variable Interest Entities
|
216 |
Sustainable Cost Reductions
|
219 |
RESULTS OF OPERATIONS
|
|||||||||||||
KWh Sales/Degree Days
|
|||||||||||||
Summary of KWh Energy Sales
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in millions of KWhs)
|
|||||||||||||
Retail:
|
|||||||||||||
Residential
|
1,152
|
1,217
|
2,878
|
2,786
|
|||||||||
Commercial
|
1,197
|
1,290
|
2,385
|
2,456
|
|||||||||
Industrial
|
1,884
|
1,964
|
3,697
|
3,797
|
|||||||||
Miscellaneous
|
15
|
15
|
35
|
38
|
|||||||||
Total Retail (a)
|
4,248
|
4,486
|
8,995
|
9,077
|
|||||||||
Wholesale
|
2,251
|
2,068
|
4,831
|
4,029
|
|||||||||
Total KWhs
|
6,499
|
6,554
|
13,826
|
13,106
|
|||||||||
(a)
|
Represents energy delivered to distribution customers.
|
Summary of Heating and Cooling Degree Days
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in degree days)
|
|||||||||||||
Actual - Heating (a)
|
263
|
163
|
2,551
|
1,784
|
|||||||||
Normal - Heating (b)
|
230
|
235
|
2,385
|
2,420
|
|||||||||
Actual - Cooling (c)
|
278
|
369
|
278
|
398
|
|||||||||
Normal - Cooling (b)
|
260
|
256
|
262
|
257
|
|||||||||
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
||||||||||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
||||||||||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
Second Quarter of 2013 Compared to Second Quarter of 2012
|
||||||||
Reconciliation of Second Quarter of 2012 to Second Quarter of 2013
|
||||||||
Net Income
|
||||||||
(in millions)
|
||||||||
Second Quarter of 2012
|
$
|
30
|
||||||
Changes in Gross Margin:
|
||||||||
Retail Margins
|
13
|
|||||||
FERC Municipals and Cooperatives
|
21
|
|||||||
Off-system Sales
|
(3)
|
|||||||
Transmission Revenues
|
(4)
|
|||||||
Other Revenues
|
(1)
|
|||||||
Total Change in Gross Margin
|
26
|
|||||||
Changes in Expenses and Other:
|
||||||||
Other Operation and Maintenance
|
(1)
|
|||||||
Depreciation and Amortization
|
(8)
|
|||||||
Taxes Other Than Income Taxes
|
(4)
|
|||||||
Other Income
|
5
|
|||||||
Total Change in Expenses and Other
|
(8)
|
|||||||
Income Tax Expense
|
(7)
|
|||||||
Second Quarter of 2013
|
$
|
41
|
·
|
Retail Margins increased $13 million primarily due to the following:
|
||
·
|
A $24 million increase due to rate increases in Indiana effective March 2013, higher PJM revenue and higher Indiana Demand Side Management (DSM) revenue. The PJM and DSM increases were partially offset in expense items below.
|
||
These increases were partially offset by:
|
|||
·
|
An $8 million decrease due to lower weather-normalized sales.
|
||
·
|
A $4 million decrease in weather-related usage primarily due to a decrease in cooling degree days.
|
||
·
|
Margins from FERC Municipal and Cooperatives increased $21 million primarily due to the annual true-up adjustment of formula rates to actual costs.
|
||
·
|
Margins from Off-system Sales decreased $3 million primarily due to lower PJM capacity revenues and reduced trading and marketing margins.
|
||
·
|
Transmission Revenues decreased $4 million primarily due to increased PJM costs.
|
·
|
Depreciation and Amortization expenses increased $8 million primarily due to higher depreciable base and higher depreciation rates reflecting a change in Tanners Creek Plant’s estimated life approved in Indiana effective March 2013. The majority of the increase in depreciation for Tanners Creek Plant’s life is offset within Gross Margin.
|
|
·
|
Taxes Other Than Income Taxes expenses increased $4 million primarily due to property tax increases.
|
|
·
|
Other Income increased $5 million primarily due to an increase in equity AFUDC.
|
|
·
|
Income Tax Expense increased $7 million primarily due to an increase in pretax book income.
|
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012
|
||||||||||
Reconciliation of Six Months Ended June 30, 2012 to Six Months Ended June 30, 2013
|
||||||||||
Net Income
|
||||||||||
(in millions)
|
||||||||||
Six Months Ended June 30, 2012
|
$
|
69
|
||||||||
Changes in Gross Margin:
|
||||||||||
Retail Margins
|
37
|
|||||||||
FERC Municipals and Cooperatives
|
20
|
|||||||||
Off-system Sales
|
(4)
|
|||||||||
Transmission Revenues
|
(4)
|
|||||||||
Other Revenues
|
2
|
|||||||||
Total Change in Gross Margin
|
51
|
|||||||||
Changes in Expenses and Other:
|
||||||||||
Other Operation and Maintenance
|
(14)
|
|||||||||
Depreciation and Amortization
|
(15)
|
|||||||||
Taxes Other Than Income Taxes
|
(4)
|
|||||||||
Other Income
|
8
|
|||||||||
Interest Expense
|
1
|
|||||||||
Total Change in Expenses and Other
|
(24)
|
|||||||||
Income Tax Expense
|
(12)
|
|||||||||
Six Months Ended June 30, 2013
|
$
|
84
|
·
|
Retail Margins increased $37 million primarily due to the following:
|
||
·
|
A $33 million increase due to rate increases in Indiana effective March 2013, higher PJM revenue and higher Indiana Demand Side Management (DSM) revenue. The PJM and DSM increases were partially offset in expense items below.
|
||
·
|
Margins from FERC Municipal and Cooperatives increased $20 million primarily due to the annual true-up adjustment of formula rates to actual costs.
|
||
·
|
Margins from Off-system Sales decreased $4 million primarily due to lower PJM capacity revenues and reduced trading and marketing margins.
|
||
·
|
Transmission Revenues decreased $4 million primarily due to increased PJM costs.
|
·
|
Other Operation and Maintenance expenses increased $14 million primarily due to the following:
|
||
·
|
An $8 million increase in steam maintenance expenses primarily due to Rockport Plant and Tanners Creek Plant outages in the first quarter of 2013.
|
||
·
|
A $7 million increase in transmission expenses primarily due to increased PJM costs.
|
||
·
|
A $4 million increase in customer service costs primarily due to higher DSM expenses. The increase in DSM expenses was offset by a corresponding increase in Retail Margins discussed above.
|
||
These increases were partially offset by:
|
|||
·
|
A $5 million decrease in administrative and general operation expenses.
|
||
·
|
Depreciation and Amortization expenses increased $15 million primarily due to higher depreciable base and higher depreciation rates reflecting a change in Tanners Creek Plant’s estimated life approved in Michigan effective April 2012 and in Indiana effective March 2013. The majority of the increase in depreciation for Tanners Creek Plant’s life is offset within Gross Margin.
|
·
|
Taxes Other Than Income Taxes expenses increased $4 million primarily due to property tax increases.
|
||
·
|
Other Income increased $8 million primarily due to an increase in equity AFUDC.
|
||
·
|
Income Tax Expense increased $12 million primarily due to an increase in pretax book income and other book/tax differences which are accounted for on a flow-through basis.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
||||||||||||||
(in thousands)
|
||||||||||||||
(Unaudited)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
REVENUES
|
||||||||||||||
Electric Generation, Transmission and Distribution
|
$
|
490,301
|
$
|
435,965
|
$
|
980,904
|
$
|
871,992
|
||||||
Sales to AEP Affiliates
|
31,335
|
45,728
|
86,312
|
121,643
|
||||||||||
Other Revenues – Affiliated
|
26,815
|
29,052
|
62,640
|
59,763
|
||||||||||
Other Revenues – Nonaffiliated
|
1,050
|
131
|
3,038
|
3,685
|
||||||||||
TOTAL REVENUES
|
549,501
|
510,876
|
1,132,894
|
1,057,083
|
||||||||||
EXPENSES
|
||||||||||||||
Fuel and Other Consumables Used for Electric Generation
|
85,030
|
96,715
|
189,895
|
209,085
|
||||||||||
Purchased Electricity for Resale
|
36,814
|
29,488
|
78,626
|
65,398
|
||||||||||
Purchased Electricity from AEP Affiliates
|
99,547
|
82,188
|
200,923
|
170,141
|
||||||||||
Other Operation
|
132,478
|
134,274
|
277,716
|
269,490
|
||||||||||
Maintenance
|
50,238
|
47,244
|
95,752
|
89,509
|
||||||||||
Depreciation and Amortization
|
45,696
|
37,560
|
86,598
|
71,539
|
||||||||||
Taxes Other Than Income Taxes
|
22,165
|
18,604
|
44,621
|
40,793
|
||||||||||
TOTAL EXPENSES
|
471,968
|
446,073
|
974,131
|
915,955
|
||||||||||
OPERATING INCOME
|
77,533
|
64,803
|
158,763
|
141,128
|
||||||||||
Other Income (Expense):
|
||||||||||||||
Interest Income
|
2,662
|
524
|
4,717
|
1,775
|
||||||||||
Allowance for Equity Funds Used During Construction
|
4,881
|
2,324
|
10,527
|
5,335
|
||||||||||
Interest Expense
|
(24,436)
|
(25,373)
|
(48,647)
|
(50,426)
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
60,640
|
42,278
|
125,360
|
97,812
|
||||||||||
Income Tax Expense
|
19,886
|
12,468
|
41,149
|
28,781
|
||||||||||
NET INCOME
|
$
|
40,754
|
$
|
29,810
|
$
|
84,211
|
$
|
69,031
|
||||||
The common stock of I&M is wholly-owned by AEP.
|
||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in thousands)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Net Income
|
$
|
40,754
|
$
|
29,810
|
$
|
84,211
|
$
|
69,031
|
|||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|||||||||||||
Cash Flow Hedges, Net of Tax of $172 and $4,002 for the Three Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively, and $1,854 and $2,680 for the
|
|||||||||||||
Six Months Ended June 30, 2013 and 2012, Respectively
|
321
|
(7,433)
|
3,444
|
(4,977)
|
|||||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $95
|
|||||||||||||
and $150 for the Three Months Ended June 30, 2013 and 2012,
|
|||||||||||||
Respectively, and $189 and $300 for the Six Months Ended June 30, 2013
|
|||||||||||||
and 2012, Respectively
|
175
|
278
|
351
|
557
|
|||||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
496
|
(7,155)
|
3,795
|
(4,420)
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
41,250
|
$
|
22,655
|
$
|
88,006
|
$
|
64,611
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
Accumulated
|
||||||||||||||||||
Other
|
||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – DECEMBER 31, 2011
|
$
|
56,584
|
$
|
980,896
|
$
|
751,721
|
$
|
(28,221)
|
$
|
1,760,980
|
||||||||
Common Stock Dividends
|
(25,000)
|
(25,000)
|
||||||||||||||||
Net Income
|
69,031
|
69,031
|
||||||||||||||||
Other Comprehensive Loss
|
(4,420)
|
(4,420)
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – JUNE 30, 2012
|
$
|
56,584
|
$
|
980,896
|
$
|
795,752
|
$
|
(32,641)
|
$
|
1,800,591
|
||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – DECEMBER 31, 2012
|
$
|
56,584
|
$
|
980,896
|
$
|
795,178
|
$
|
(28,883)
|
$
|
1,803,775
|
||||||||
Common Stock Dividends
|
(25,000)
|
(25,000)
|
||||||||||||||||
Net Income
|
84,211
|
84,211
|
||||||||||||||||
Other Comprehensive Income
|
3,795
|
3,795
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – JUNE 30, 2013
|
$
|
56,584
|
$
|
980,896
|
$
|
854,389
|
$
|
(25,088)
|
$
|
1,866,781
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
ASSETS
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
CURRENT ASSETS
|
|||||||||
Cash and Cash Equivalents
|
$
|
1,014
|
$
|
1,562
|
|||||
Advances to Affiliates
|
273,117
|
116,977
|
|||||||
Accounts Receivable:
|
|||||||||
Customers
|
79,501
|
61,776
|
|||||||
Affiliated Companies
|
58,494
|
79,886
|
|||||||
Accrued Unbilled Revenues
|
11,207
|
11,218
|
|||||||
Miscellaneous
|
6,400
|
12,260
|
|||||||
Allowance for Uncollectible Accounts
|
(67)
|
(229)
|
|||||||
Total Accounts Receivable
|
155,535
|
164,911
|
|||||||
Fuel
|
74,818
|
53,406
|
|||||||
Materials and Supplies
|
191,195
|
195,147
|
|||||||
Risk Management Assets
|
19,599
|
26,974
|
|||||||
Deferred Cook Plant Fire Costs
|
-
|
80,000
|
|||||||
Prepayments and Other Current Assets
|
71,782
|
83,270
|
|||||||
TOTAL CURRENT ASSETS
|
787,060
|
722,247
|
|||||||
PROPERTY, PLANT AND EQUIPMENT
|
|||||||||
Electric:
|
|||||||||
Generation
|
4,130,327
|
4,062,733
|
|||||||
Transmission
|
1,298,743
|
1,278,236
|
|||||||
Distribution
|
1,580,709
|
1,553,358
|
|||||||
Other Property, Plant and Equipment (Including Nuclear Fuel and Coal Mining)
|
752,084
|
725,313
|
|||||||
Construction Work in Progress
|
370,384
|
341,063
|
|||||||
Total Property, Plant and Equipment
|
8,132,247
|
7,960,703
|
|||||||
Accumulated Depreciation, Depletion and Amortization
|
3,269,566
|
3,232,135
|
|||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
4,862,681
|
4,728,568
|
|||||||
OTHER NONCURRENT ASSETS
|
|||||||||
Regulatory Assets
|
564,163
|
540,019
|
|||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
1,791,394
|
1,705,772
|
|||||||
Long-term Risk Management Assets
|
16,315
|
23,569
|
|||||||
Deferred Charges and Other Noncurrent Assets
|
117,327
|
111,364
|
|||||||
TOTAL OTHER NONCURRENT ASSETS
|
2,489,199
|
2,380,724
|
|||||||
TOTAL ASSETS
|
$
|
8,138,940
|
$
|
7,831,539
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(dollars in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
CURRENT LIABILITIES
|
|||||||||
Accounts Payable:
|
|||||||||
General
|
$
|
143,935
|
$
|
208,701
|
|||||
Affiliated Companies
|
59,793
|
104,631
|
|||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
|||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $141,869 and
|
|||||||||
$119,890, Respectively, Related to DCC Fuel)
|
228,748
|
203,953
|
|||||||
Risk Management Liabilities
|
9,387
|
31,517
|
|||||||
Customer Deposits
|
29,794
|
31,142
|
|||||||
Accrued Taxes
|
66,786
|
67,675
|
|||||||
Accrued Interest
|
28,745
|
26,859
|
|||||||
Other Current Liabilities
|
102,011
|
122,053
|
|||||||
TOTAL CURRENT LIABILITIES
|
669,199
|
796,531
|
|||||||
NONCURRENT LIABILITIES
|
|||||||||
Long-term Debt – Nonaffiliated
|
2,076,444
|
1,853,713
|
|||||||
Long-term Risk Management Liabilities
|
10,020
|
13,898
|
|||||||
Deferred Income Taxes
|
1,090,509
|
1,019,160
|
|||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
990,801
|
948,292
|
|||||||
Asset Retirement Obligations
|
1,233,640
|
1,192,313
|
|||||||
Deferred Credits and Other Noncurrent Liabilities
|
201,546
|
203,857
|
|||||||
TOTAL NONCURRENT LIABILITIES
|
5,602,960
|
5,231,233
|
|||||||
TOTAL LIABILITIES
|
6,272,159
|
6,027,764
|
|||||||
Rate Matters (Note 3)
|
|||||||||
Commitments and Contingencies (Note 4)
|
|||||||||
COMMON SHAREHOLDER’S EQUITY
|
|||||||||
Common Stock – No Par Value:
|
|||||||||
Authorized – 2,500,000 Shares
|
|||||||||
Outstanding – 1,400,000 Shares
|
56,584
|
56,584
|
|||||||
Paid-in Capital
|
980,896
|
980,896
|
|||||||
Retained Earnings
|
854,389
|
795,178
|
|||||||
Accumulated Other Comprehensive Income (Loss)
|
(25,088)
|
(28,883)
|
|||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
1,866,781
|
1,803,775
|
|||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
$
|
8,138,940
|
$
|
7,831,539
|
|||||
|
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
Six Months Ended June 30,
|
|||||||||
2013
|
2012
|
||||||||
OPERATING ACTIVITIES
|
|||||||||
Net Income
|
$
|
84,211
|
$
|
69,031
|
|||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|||||||||
Depreciation and Amortization
|
86,598
|
71,539
|
|||||||
Deferred Income Taxes
|
51,234
|
40,899
|
|||||||
Deferral of Incremental Nuclear Refueling Outage Expenses, Net
|
(18,283)
|
(9,163)
|
|||||||
Allowance for Equity Funds Used During Construction
|
(10,527)
|
(5,335)
|
|||||||
Mark-to-Market of Risk Management Contracts
|
9,096
|
(2,798)
|
|||||||
Amortization of Nuclear Fuel
|
62,625
|
64,228
|
|||||||
Fuel Over/Under-Recovery, Net
|
(1,796)
|
(2,650)
|
|||||||
Change in Other Noncurrent Assets
|
(2,690)
|
6,849
|
|||||||
Change in Other Noncurrent Liabilities
|
3,599
|
42,793
|
|||||||
Changes in Certain Components of Working Capital:
|
|||||||||
Accounts Receivable, Net
|
9,376
|
31,614
|
|||||||
Fuel, Materials and Supplies
|
(17,460)
|
(8,475)
|
|||||||
Accounts Payable
|
(48,048)
|
(33,573)
|
|||||||
Accrued Taxes, Net
|
10,250
|
19,642
|
|||||||
Other Current Assets
|
12,209
|
(9,183)
|
|||||||
Other Current Liabilities
|
(16,764)
|
(26,557)
|
|||||||
Net Cash Flows from Operating Activities
|
213,630
|
248,861
|
|||||||
INVESTING ACTIVITIES
|
|||||||||
Construction Expenditures
|
(267,201)
|
(137,473)
|
|||||||
Change in Advances to Affiliates, Net
|
(156,140)
|
(142,752)
|
|||||||
Purchases of Investment Securities
|
(411,769)
|
(544,981)
|
|||||||
Sales of Investment Securities
|
385,942
|
516,579
|
|||||||
Acquisitions of Nuclear Fuel
|
(58,900)
|
(11,263)
|
|||||||
Insurance Proceeds Related to Cook Plant Fire
|
72,000
|
-
|
|||||||
Other Investing Activities
|
3,898
|
26,692
|
|||||||
Net Cash Flows Used for Investing Activities
|
(432,170)
|
(293,198)
|
|||||||
FINANCING ACTIVITIES
|
|||||||||
Issuance of Long-term Debt – Nonaffiliated
|
348,899
|
128,533
|
|||||||
Retirement of Long-term Debt – Nonaffiliated
|
(103,793)
|
(55,995)
|
|||||||
Principal Payments for Capital Lease Obligations
|
(2,791)
|
(3,490)
|
|||||||
Dividends Paid on Common Stock
|
(25,000)
|
(25,000)
|
|||||||
Other Financing Activities
|
677
|
167
|
|||||||
Net Cash Flows from Financing Activities
|
217,992
|
44,215
|
|||||||
Net Decrease in Cash and Cash Equivalents
|
(548)
|
(122)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
1,562
|
1,020
|
|||||||
Cash and Cash Equivalents at End of Period
|
$
|
1,014
|
$
|
898
|
|||||
SUPPLEMENTARY INFORMATION
|
|||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$
|
44,165
|
$
|
48,565
|
|||||
Net Cash Paid (Received) for Income Taxes
|
(27,608)
|
(31,921)
|
|||||||
Noncash Acquisitions Under Capital Leases
|
1,888
|
4,341
|
|||||||
Construction Expenditures Included in Current Liabilities as of June 30,
|
44,060
|
26,509
|
|||||||
Acquisition of Nuclear Fuel Included in Current Liabilities as of June 30,
|
41,086
|
14
|
|||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
Page
|
|
Number
|
|
Significant Accounting Matters
|
154 |
Comprehensive Income
|
154 |
Rate Matters
|
168 |
Commitments, Guarantees and Contingencies
|
178 |
Benefit Plans
|
183 |
Business Segments
|
185 |
Derivatives and Hedging
|
186 |
Fair Value Measurements
|
199 |
Income Taxes
|
211 |
Financing Activities
|
212 |
Variable Interest Entities
|
216 |
Sustainable Cost Reductions
|
219 |
RESULTS OF OPERATIONS
|
|||||||||||||
KWh Sales/Degree Days
|
|||||||||||||
Summary of KWh Energy Sales
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in millions of KWhs)
|
|||||||||||||
Retail:
|
|||||||||||||
Residential
|
3,000
|
3,002
|
7,264
|
6,881
|
|||||||||
Commercial
|
3,506
|
3,582
|
6,892
|
6,818
|
|||||||||
Industrial
|
4,203
|
4,799
|
8,285
|
9,520
|
|||||||||
Miscellaneous
|
27
|
27
|
62
|
58
|
|||||||||
Total Retail (a)
|
10,736
|
11,410
|
22,503
|
23,277
|
|||||||||
Wholesale
|
2,417
|
2,798
|
5,461
|
5,304
|
|||||||||
Total KWhs
|
13,153
|
14,208
|
27,964
|
28,581
|
|||||||||
(a)
|
Represents energy delivered to distribution customers.
|
Summary of Heating and Cooling Degree Days
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in degree days)
|
|||||||||||||
Actual - Heating (a)
|
193
|
146
|
2,164
|
1,543
|
|||||||||
Normal - Heating (b)
|
190
|
195
|
2,075
|
2,112
|
|||||||||
Actual - Cooling (c)
|
346
|
401
|
346
|
428
|
|||||||||
Normal - Cooling (b)
|
277
|
270
|
280
|
273
|
|||||||||
(a)
|
Eastern Region heating degree days are calculated on a 55 degree temperature base.
|
||||||||||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
||||||||||||
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
Second Quarter of 2013 Compared to Second Quarter of 2012
|
||||||||
Reconciliation of Second Quarter of 2012 to Second Quarter of 2013
|
||||||||
Net Income
|
||||||||
(in millions)
|
||||||||
Second Quarter of 2012
|
$
|
101
|
||||||
Changes in Gross Margin:
|
||||||||
Retail Margins
|
(4)
|
|||||||
Off-system Sales
|
(42)
|
|||||||
Transmission Revenues
|
5
|
|||||||
Total Change in Gross Margin
|
(41)
|
|||||||
Changes in Expenses and Other:
|
||||||||
Other Operation and Maintenance
|
26
|
|||||||
Asset Impairments and Other Related Charges
|
(154)
|
|||||||
Depreciation and Amortization
|
35
|
|||||||
Taxes Other Than Income Taxes
|
(2)
|
|||||||
Interest Expense
|
6
|
|||||||
Total Change in Expenses and Other
|
(89)
|
|||||||
Income Tax Expense
|
50
|
|||||||
Second Quarter of 2013
|
$
|
21
|
·
|
Retail Margins decreased $4 million primarily due to the following:
|
||
·
|
A $66 million decrease attributable to customers switching to alternative CRES providers. This decrease in Retail Margins is partially offset by an increase in Transmission Revenues related to CRES providers detailed below.
|
||
·
|
A $35 million decrease due to the second quarter 2012 partial reversal of a 2011 fuel provision based on an April 2012 PUCO order related to the 2009 FAC audit.
|
||
·
|
An $8 million decrease due to lower sales to Buckeye Power, Inc. to provide backup energy under the Cardinal Station Agreement.
|
||
·
|
A $6 million decrease in weather-related usage primarily due to a 14% decrease in cooling degree days.
|
||
These decreases were partially offset by:
|
|||
·
|
An $85 million increase in revenues associated with the Universal Service Fund (USF) surcharge, Retail Stability Rider, Deferred Asset Recovery Rider and Distribution Investment Recovery Rider. The majority of these increases have corresponding increases in other expense items below.
|
||
·
|
A $26 million increase due to the deferral of consumables and purchased power as a result of the PUCO’s July 2012 approval of the capacity deferral mechanism.
|
||
·
|
Margins from Off-system Sales decreased $42 million primarily due to lower CRES capacity revenues as a result of Reliability Pricing Model pricing effective August 2012, lower PJM capacity revenues and reduced trading and marketing margins. The decrease in CRES capacity revenues is partially offset in other expense items below.
|
||
·
|
Transmission Revenues increased $5 million primarily due to increased transmission revenues from customers who have switched to alternative CRES providers. The increase in transmission revenues related to CRES providers offsets lost revenues included in Retail Margins above.
|
·
|
Other Operation and Maintenance expenses decreased $26 million primarily due to the following:
|
||
·
|
A $12 million decrease due to the deferral of capacity-related costs as a result of the PUCO's July 2012 approval of the capacity deferral mechanism.
|
||
·
|
A $12 million decrease in recoverable PJM expenses.
|
||
·
|
A $6 million decrease in advertising expenses.
|
||
·
|
A $3 million decrease due to expenses recorded in 2012 for the 2012 sustainable cost reductions program.
|
||
·
|
A $3 million decrease due to updated gridSMART rider allocation ratios between capital carrying charges and operations expense beginning in January 2013. This decrease was partially offset by a corresponding increase in Depreciation and Amortization.
|
||
These decreases were partially offset by:
|
|||
·
|
A $19 million increase in remitted USF surcharge payments to the Ohio Department of Development to fund an energy assistance program for qualified Ohio customers. This increase was offset by a corresponding increase in Retail Margins above.
|
||
·
|
Asset Impairments and Other Related Charges increased $154 million due to the second quarter 2013 impairment of Muskingum River Plant, Unit 5.
|
||
·
|
Depreciation and Amortization expenses decreased $35 million primarily due to the following:
|
||
·
|
A $26 million decrease as a result of depreciation ceasing on certain generating plants that were impaired in November 2012.
|
||
·
|
A $15 million decrease due to the deferral of capacity-related depreciation costs as a result of the PUCO's July 2012 approval of the capacity deferral mechanism.
|
||
·
|
Interest Expense decreased $6 million primarily due to lower outstanding long-term debt balances and lower long-term interest rates.
|
||
·
|
Income Tax Expense decreased $50 million primarily due to a decrease in pretax book income.
|
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012
|
||||||||
Reconciliation of Six Months Ended June 30, 2012 to Six Months Ended June 30, 2013
|
||||||||
Net Income
|
||||||||
(in millions)
|
||||||||
Six Months Ended June 30, 2012
|
$
|
252
|
||||||
Changes in Gross Margin:
|
||||||||
Retail Margins
|
(3)
|
|||||||
Off-system Sales
|
(74)
|
|||||||
Transmission Revenues
|
16
|
|||||||
Total Change in Gross Margin
|
(61)
|
|||||||
Changes in Expenses and Other:
|
||||||||
Other Operation and Maintenance
|
(22)
|
|||||||
Asset Impairments and Other Related Charges
|
(154)
|
|||||||
Depreciation and Amortization
|
76
|
|||||||
Interest Expense
|
10
|
|||||||
Total Change in Expenses and Other
|
(90)
|
|||||||
Income Tax Expense
|
50
|
|||||||
Six Months Ended June 30, 2013
|
$
|
151
|
·
|
Retail Margins decreased $3 million primarily due to the following:
|
||
·
|
A $153 million decrease attributable to customers switching to alternative CRES providers. This decrease in Retail Margins is partially offset by an increase in Transmission Revenues related to CRES providers detailed below.
|
||
·
|
A $35 million decrease due to the second quarter 2012 partial reversal of a 2011 fuel provision based on an April 2012 PUCO order related to the 2009 FAC audit.
|
||
·
|
A $15 million decrease due to lower sales to Buckeye Power, Inc. to provide backup energy under the Cardinal Station Agreement.
|
||
·
|
A $5 million decrease in capacity settlement revenues under the Interconnection Agreement.
|
||
These decreases were partially offset by:
|
|||
·
|
A $146 million increase in revenues associated with the USF surcharge, Retail Stability Rider, Deferred Asset Recovery Rider and Distribution Investment Recovery Rider. The majority of these increases have corresponding increases in other expense items below.
|
||
·
|
A $47 million increase due to the deferral of consumables and purchased power as a result of the PUCO’s July 2012 approval of the capacity deferral mechanism.
|
||
·
|
A $15 million increase in weather-related usage primarily due to a 40% increase in heating degree days.
|
||
·
|
Margins from Off-system Sales decreased $74 million primarily due to lower CRES capacity revenues as a result of Reliability Pricing Model pricing effective August 2012, lower PJM capacity revenues and reduced trading and marketing margins, partially offset by higher physical sales volumes and margins. The decrease in CRES capacity revenues is partially offset in other expense items below.
|
||
·
|
Transmission Revenues increased $16 million primarily due to increased transmission revenues from customers who have switched to alternative CRES providers. The increase in transmission revenues related to CRES providers partially offsets lost revenues included in Retail Margins above.
|
·
|
Other Operation and Maintenance expenses increased $22 million primarily due to the following:
|
||
·
|
A $45 million increase in remitted USF surcharge payments to the Ohio Department of Development to fund an energy assistance program for qualified Ohio customers. This increase was offset by a corresponding increase in Retail Margins above.
|
||
·
|
A $35 million increase due to the first quarter 2012 reversal of an obligation to contribute to Partnership with Ohio and Ohio Growth Fund as a result of the PUCO’s February 2012 rejection of the Ohio modified stipulation.
|
||
These increases were partially offset by:
|
|||
·
|
A $20 million decrease due to the deferral of capacity-related costs as a result of the PUCO's July 2012 approval of the capacity deferral mechanism.
|
||
·
|
A $9 million decrease in recoverable PJM expenses.
|
||
·
|
An $8 million decrease primarily due to the 2012 reversal of storm damage deferrals as a result of the PUCO’s February 2012 rejection of the Ohio modified stipulation.
|
||
·
|
A $7 million decrease due to updated gridSMART rider allocation ratios between capital carrying charges and operations expense beginning in January 2013. This decrease was partially offset by a corresponding increase in Depreciation and Amortization.
|
||
·
|
A $6 million decrease in advertising expenses.
|
||
·
|
Asset Impairments and Other Related Charges increased $154 million due to the second quarter 2013 impairment of Muskingum River Plant, Unit 5.
|
||
·
|
Depreciation and Amortization expenses decreased $76 million primarily due to the following:
|
||
·
|
A $53 million decrease as a result of depreciation ceasing on certain generating plants that were impaired in November 2012.
|
||
·
|
A $35 million decrease due to the deferral of capacity-related depreciation costs as a result of the PUCO’s July 2012 approval of the capacity deferral mechanism.
|
||
·
|
Interest Expense decreased $10 million primarily due to lower outstanding long-term debt balances and lower long-term interest rates.
|
||
·
|
Income Tax Expense decreased $50 million primarily due to a decrease in pretax book income.
|
OHIO POWER COMPANY AND SUBSIDIARY
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
||||||||||||||
(in thousands)
|
||||||||||||||
(Unaudited)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
REVENUES
|
||||||||||||||
Electric Generation, Transmission and Distribution
|
$
|
817,493
|
$
|
929,487
|
$
|
1,751,174
|
$
|
1,970,318
|
||||||
Sales to AEP Affiliates
|
274,390
|
172,561
|
560,032
|
354,318
|
||||||||||
Other Revenues – Affiliated
|
7,583
|
7,979
|
15,423
|
17,090
|
||||||||||
Other Revenues – Nonaffiliated
|
3,528
|
3,723
|
10,155
|
9,247
|
||||||||||
TOTAL REVENUES
|
1,102,994
|
1,113,750
|
2,336,784
|
2,350,973
|
||||||||||
EXPENSES
|
||||||||||||||
Fuel and Other Consumables Used for Electric Generation
|
352,368
|
298,294
|
761,952
|
668,287
|
||||||||||
Purchased Electricity for Resale
|
37,158
|
52,104
|
80,343
|
110,238
|
||||||||||
Purchased Electricity from AEP Affiliates
|
73,290
|
81,818
|
153,671
|
170,501
|
||||||||||
Other Operation
|
137,265
|
162,086
|
321,452
|
292,428
|
||||||||||
Maintenance
|
72,997
|
74,015
|
147,292
|
154,619
|
||||||||||
Asset Impairments and Other Related Charges
|
154,304
|
-
|
154,304
|
-
|
||||||||||
Depreciation and Amortization
|
102,346
|
137,009
|
194,670
|
271,439
|
||||||||||
Taxes Other Than Income Taxes
|
100,194
|
98,420
|
205,215
|
203,838
|
||||||||||
TOTAL EXPENSES
|
1,029,922
|
903,746
|
2,018,899
|
1,871,350
|
||||||||||
OPERATING INCOME
|
73,072
|
210,004
|
317,885
|
479,623
|
||||||||||
Other Income (Expense):
|
||||||||||||||
Interest Income
|
2,326
|
345
|
2,689
|
1,443
|
||||||||||
Carrying Costs Income
|
3,757
|
4,511
|
7,020
|
7,269
|
||||||||||
Allowance for Equity Funds Used During Construction
|
521
|
915
|
1,825
|
2,038
|
||||||||||
Interest Expense
|
(47,244)
|
(53,147)
|
(97,417)
|
(107,408)
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
32,432
|
162,628
|
232,002
|
382,965
|
||||||||||
Income Tax Expense
|
11,376
|
61,205
|
81,172
|
130,712
|
||||||||||
NET INCOME
|
$
|
21,056
|
$
|
101,423
|
$
|
150,830
|
$
|
252,253
|
||||||
The common stock of OPCo is wholly-owned by AEP.
|
||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
OHIO POWER COMPANY AND SUBSIDIARY
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in thousands)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Net Income
|
$
|
21,056
|
$
|
101,423
|
$
|
150,830
|
$
|
252,253
|
|||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|||||||||||||
Cash Flow Hedges, Net of Tax of $293 and $91 for the Three Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively, and $281 and $846 for the Six
|
|||||||||||||
Months Ended June 30, 2013 and 2012, Respectively
|
(545)
|
170
|
521
|
(1,571)
|
|||||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $1,760
|
|||||||||||||
and $1,745 for the Three Months Ended June 30, 2013 and 2012,
|
|||||||||||||
Respectively, and $3,520 and $3,490 for the Six Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively
|
3,270
|
3,240
|
6,539
|
6,481
|
|||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
2,725
|
3,410
|
7,060
|
4,910
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
23,781
|
$
|
104,833
|
$
|
157,890
|
$
|
257,163
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
OHIO POWER COMPANY AND SUBSIDIARY
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
|
||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
Accumulated
|
||||||||||||||||||
Other
|
||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – DECEMBER 31, 2011
|
$
|
321,201
|
$
|
1,744,099
|
$
|
2,582,600
|
$
|
(197,722)
|
$
|
4,450,178
|
||||||||
Common Stock Dividends
|
(150,000)
|
(150,000)
|
||||||||||||||||
Net Income
|
252,253
|
252,253
|
||||||||||||||||
Other Comprehensive Income
|
4,910
|
4,910
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – JUNE 30, 2012
|
$
|
321,201
|
$
|
1,744,099
|
$
|
2,684,853
|
$
|
(192,812)
|
$
|
4,557,341
|
||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – DECEMBER 31, 2012
|
$
|
321,201
|
$
|
1,744,099
|
$
|
2,626,134
|
$
|
(165,725)
|
$
|
4,525,709
|
||||||||
Common Stock Dividends
|
(175,000)
|
(175,000)
|
||||||||||||||||
Net Income
|
150,830
|
150,830
|
||||||||||||||||
Other Comprehensive Income
|
7,060
|
7,060
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – JUNE 30, 2013
|
$
|
321,201
|
$
|
1,744,099
|
$
|
2,601,964
|
$
|
(158,665)
|
$
|
4,508,599
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
OHIO POWER COMPANY AND SUBSIDIARY
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
ASSETS
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
CURRENT ASSETS
|
|||||||||
Cash and Cash Equivalents
|
$
|
2,545
|
$
|
3,640
|
|||||
Advances to Affiliates
|
10,321
|
116,422
|
|||||||
Accounts Receivable:
|
|||||||||
Customers
|
115,913
|
135,954
|
|||||||
Affiliated Companies
|
158,313
|
176,590
|
|||||||
Accrued Unbilled Revenues
|
11,674
|
57,887
|
|||||||
Miscellaneous
|
3,887
|
9,327
|
|||||||
Allowance for Uncollectible Accounts
|
(7,418)
|
(129)
|
|||||||
Total Accounts Receivable
|
282,369
|
379,629
|
|||||||
Fuel
|
312,293
|
328,840
|
|||||||
Materials and Supplies
|
186,662
|
186,269
|
|||||||
Risk Management Assets
|
41,145
|
44,313
|
|||||||
Accrued Tax Benefits
|
43,706
|
17,785
|
|||||||
Prepayments and Other Current Assets
|
32,684
|
26,807
|
|||||||
TOTAL CURRENT ASSETS
|
911,725
|
1,103,705
|
|||||||
PROPERTY, PLANT AND EQUIPMENT
|
|||||||||
Electric:
|
|||||||||
Generation
|
8,363,747
|
8,673,296
|
|||||||
Transmission
|
2,011,693
|
2,013,737
|
|||||||
Distribution
|
3,773,461
|
3,722,745
|
|||||||
Other Property, Plant and Equipment
|
584,611
|
571,154
|
|||||||
Construction Work in Progress
|
409,751
|
354,497
|
|||||||
Total Property, Plant and Equipment
|
15,143,263
|
15,335,429
|
|||||||
Accumulated Depreciation and Amortization
|
5,154,691
|
5,242,805
|
|||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
9,988,572
|
10,092,624
|
|||||||
OTHER NONCURRENT ASSETS
|
|||||||||
Regulatory Assets
|
1,527,609
|
1,420,966
|
|||||||
Long-term Risk Management Assets
|
33,381
|
48,288
|
|||||||
Deferred Charges and Other Noncurrent Assets
|
193,947
|
320,026
|
|||||||
TOTAL OTHER NONCURRENT ASSETS
|
1,754,937
|
1,789,280
|
|||||||
TOTAL ASSETS
|
$
|
12,655,234
|
$
|
12,985,609
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
OHIO POWER COMPANY AND SUBSIDIARY
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||
CURRENT LIABILITIES
|
|||||||||
Advances from Affiliates
|
$
|
292,051
|
$
|
-
|
|||||
Accounts Payable:
|
|||||||||
General
|
228,348
|
276,220
|
|||||||
Affiliated Companies
|
112,737
|
153,222
|
|||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
664,450
|
856,000
|
|||||||
Risk Management Liabilities
|
19,769
|
24,155
|
|||||||
Accrued Taxes
|
324,412
|
467,309
|
|||||||
Accrued Interest
|
52,499
|
63,560
|
|||||||
Other Current Liabilities
|
231,272
|
263,638
|
|||||||
TOTAL CURRENT LIABILITIES
|
1,925,538
|
2,104,104
|
|||||||
NONCURRENT LIABILITIES
|
|||||||||
Long-term Debt – Nonaffiliated
|
2,440,344
|
2,804,440
|
|||||||
Long-term Debt – Affiliated
|
400,000
|
200,000
|
|||||||
Long-term Risk Management Liabilities
|
19,803
|
25,965
|
|||||||
Deferred Income Taxes
|
2,412,119
|
2,345,850
|
|||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
444,931
|
451,071
|
|||||||
Deferred Credits and Other Noncurrent Liabilities
|
503,900
|
528,470
|
|||||||
TOTAL NONCURRENT LIABILITIES
|
6,221,097
|
6,355,796
|
|||||||
TOTAL LIABILITIES
|
8,146,635
|
8,459,900
|
|||||||
Rate Matters (Note 3)
|
|||||||||
Commitments and Contingencies (Note 4)
|
|||||||||
COMMON SHAREHOLDER’S EQUITY
|
|||||||||
Common Stock – No Par Value:
|
|||||||||
Authorized – 40,000,000 Shares
|
|||||||||
Outstanding – 27,952,473 Shares
|
321,201
|
321,201
|
|||||||
Paid-in Capital
|
1,744,099
|
1,744,099
|
|||||||
Retained Earnings
|
2,601,964
|
2,626,134
|
|||||||
Accumulated Other Comprehensive Income (Loss)
|
(158,665)
|
(165,725)
|
|||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
4,508,599
|
4,525,709
|
|||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
$
|
12,655,234
|
$
|
12,985,609
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
OHIO POWER COMPANY AND SUBSIDIARY
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
Six Months Ended June 30,
|
|||||||||
2013
|
2012
|
||||||||
OPERATING ACTIVITIES
|
|||||||||
Net Income
|
$
|
150,830
|
$
|
252,253
|
|||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|||||||||
Depreciation and Amortization
|
194,670
|
271,439
|
|||||||
Deferred Income Taxes
|
55,839
|
82,961
|
|||||||
Asset Impairments and Other Related Charges
|
154,304
|
-
|
|||||||
Carrying Costs Income
|
(7,020)
|
(7,269)
|
|||||||
Allowance for Equity Funds Used During Construction
|
(1,825)
|
(2,038)
|
|||||||
Mark-to-Market of Risk Management Contracts
|
9,448
|
(8,328)
|
|||||||
Property Taxes
|
111,392
|
109,892
|
|||||||
Fuel Over/Under-Recovery, Net
|
15,267
|
(19,433)
|
|||||||
Deferral of Ohio Capacity Costs, Net
|
(102,240)
|
-
|
|||||||
Change in Other Noncurrent Assets
|
(16,273)
|
(20,063)
|
|||||||
Change in Other Noncurrent Liabilities
|
2,421
|
416
|
|||||||
Changes in Certain Components of Working Capital:
|
|||||||||
Accounts Receivable, Net
|
100,747
|
64,404
|
|||||||
Fuel, Materials and Supplies
|
9,714
|
(70,666)
|
|||||||
Accounts Payable
|
(66,947)
|
(134,823)
|
|||||||
Accrued Taxes, Net
|
(168,818)
|
(115,596)
|
|||||||
Other Current Assets
|
5,391
|
7,982
|
|||||||
Other Current Liabilities
|
(25,859)
|
(13,884)
|
|||||||
Net Cash Flows from Operating Activities
|
421,041
|
397,247
|
|||||||
INVESTING ACTIVITIES
|
|||||||||
Construction Expenditures
|
(296,888)
|
(246,657)
|
|||||||
Change in Advances to Affiliates, Net
|
106,101
|
186,787
|
|||||||
Proceeds from Sales of Assets
|
10,875
|
5,475
|
|||||||
Other Investing Activities
|
1,085
|
6,705
|
|||||||
Net Cash Flows Used for Investing Activities
|
(178,827)
|
(47,690)
|
|||||||
FINANCING ACTIVITIES
|
|||||||||
Issuance of Long-term Debt – Nonaffiliated
|
49,562
|
-
|
|||||||
Issuance of Long-term Debt – Affiliated
|
200,000
|
-
|
|||||||
Change in Advances from Affiliates, Net
|
292,051
|
-
|
|||||||
Retirement of Long-term Debt – Nonaffiliated
|
(606,000)
|
(194,500)
|
|||||||
Principal Payments for Capital Lease Obligations
|
(4,747)
|
(4,920)
|
|||||||
Dividends Paid on Common Stock
|
(175,000)
|
(150,000)
|
|||||||
Other Financing Activities
|
825
|
134
|
|||||||
Net Cash Flows Used for Financing Activities
|
(243,309)
|
(349,286)
|
|||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(1,095)
|
271
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
3,640
|
2,095
|
|||||||
Cash and Cash Equivalents at End of Period
|
$
|
2,545
|
$
|
2,366
|
|||||
SUPPLEMENTARY INFORMATION
|
|||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$
|
105,876
|
$
|
107,216
|
|||||
Net Cash Paid (Received) for Income Taxes
|
48,841
|
15,019
|
|||||||
Noncash Acquisitions Under Capital Leases
|
3,335
|
4,239
|
|||||||
Government Grants Included in Accounts Receivable as of June 30,
|
-
|
1,094
|
|||||||
Construction Expenditures Included in Current Liabilities as of June 30,
|
56,618
|
41,873
|
|||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
Page
|
|
Number
|
|
Significant Accounting Matters
|
154 |
Comprehensive Income
|
154 |
Rate Matters
|
168 |
Commitments, Guarantees and Contingencies
|
178 |
Disposition and Impairment
|
182 |
Benefit Plans
|
183 |
Business Segments
|
185 |
Derivatives and Hedging
|
186 |
Fair Value Measurements
|
199 |
Income Taxes
|
211 |
Financing Activities
|
212 |
Variable Interest Entities
|
216 |
Sustainable Cost Reductions
|
219 |
RESULTS OF OPERATIONS
|
|||||||||||||
KWh Sales/Degree Days
|
|||||||||||||
Summary of KWh Energy Sales
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in millions of KWhs)
|
|||||||||||||
Retail:
|
|||||||||||||
Residential
|
1,370
|
1,542
|
2,806
|
2,879
|
|||||||||
Commercial
|
1,275
|
1,373
|
2,354
|
2,474
|
|||||||||
Industrial
|
1,291
|
1,298
|
2,485
|
2,491
|
|||||||||
Miscellaneous
|
321
|
341
|
598
|
641
|
|||||||||
Total Retail (a)
|
4,257
|
4,554
|
8,243
|
8,485
|
|||||||||
Wholesale
|
267
|
394
|
522
|
939
|
|||||||||
Total KWhs
|
4,524
|
4,948
|
8,765
|
9,424
|
|||||||||
(a)
|
Represents energy delivered to distribution customers.
|
Summary of Heating and Cooling Degree Days
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in degree days)
|
|||||||||||||
Actual - Heating (a)
|
119
|
-
|
1,208
|
676
|
|||||||||
Normal - Heating (b)
|
37
|
41
|
1,082
|
1,107
|
|||||||||
Actual - Cooling (c)
|
644
|
871
|
649
|
935
|
|||||||||
Normal - Cooling (b)
|
649
|
635
|
664
|
648
|
|||||||||
(a)
|
Western Region heating degree days are calculated on a 55 degree temperature base.
|
||||||||||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
||||||||||||
(c)
|
Western Region cooling degree days are calculated on a 65 degree temperature base.
|
Second Quarter of 2013 Compared to Second Quarter of 2012
|
|||||||||
Reconciliation of Second Quarter of 2012 to Second Quarter of 2013
|
|||||||||
Net Income
|
|||||||||
(in millions)
|
|||||||||
Second Quarter of 2012
|
$
|
35
|
|||||||
Changes in Gross Margin:
|
|||||||||
Retail Margins (a)
|
(7)
|
||||||||
Transmission Revenues
|
2
|
||||||||
Other Revenues
|
1
|
||||||||
Total Change in Gross Margin
|
(4)
|
||||||||
Changes in Expenses and Other:
|
|||||||||
Other Operation and Maintenance
|
(5)
|
||||||||
Taxes Other Than Income Taxes
|
(1)
|
||||||||
Total Change in Expenses and Other
|
(6)
|
||||||||
Income Tax Expense
|
3
|
||||||||
Second Quarter of 2013
|
$
|
28
|
|||||||
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins decreased $7 million primarily due to the following:
|
||
·
|
A $7 million decrease in weather-related usage primarily due to a 26% decrease in cooling degree days.
|
||
·
|
A $2 million decrease primarily due to lower weather-normalized retail sales.
|
||
These decreases were partially offset by:
|
|||
·
|
A $3 million increase primarily due to revenue increases from rate riders. This increase in retail margins has corresponding increases to riders/trackers recognized in other expense items below.
|
·
|
Other Operation and Maintenance expenses increased $5 million primarily due to increased SPP transmission services.
|
|
·
|
Income Tax Expense decreased $3 million primarily due to a decrease in pretax book income.
|
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012
|
|||||||||||
Reconciliation of Six Months Ended June 30, 2012 to Six Months Ended June 30, 2013
|
|||||||||||
Net Income
|
|||||||||||
(in millions)
|
|||||||||||
Six Months Ended June 30, 2012
|
$
|
48
|
|||||||||
Changes in Gross Margin:
|
|||||||||||
Retail Margins (a)
|
(6)
|
||||||||||
Transmission Revenues
|
3
|
||||||||||
Other Revenues
|
(1)
|
||||||||||
Total Change in Gross Margin
|
(4)
|
||||||||||
Changes in Expenses and Other:
|
|||||||||||
Other Operation and Maintenance
|
(6)
|
||||||||||
Depreciation and Amortization
|
(1)
|
||||||||||
Interest Expense
|
2
|
||||||||||
Total Change in Expenses and Other
|
(5)
|
||||||||||
Income Tax Expense
|
3
|
||||||||||
Six Months Ended June 30, 2013
|
$
|
42
|
|||||||||
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins decreased $6 million primarily due to the following:
|
||
·
|
A $6 million decrease primarily due to lower weather-normalized retail sales.
|
||
·
|
A $4 million net decrease in weather-related usage primarily due to a 31% decrease in cooling degree days, partially offset by an increase in heating degree days.
|
||
These decreases were partially offset by:
|
|||
·
|
A $6 million increase primarily due to revenue increases from rate riders. This increase in retail margins has corresponding increases to riders/trackers recognized in other expense items below.
|
||
·
|
Transmission Revenues increased $3 million primarily due to rate increases for customers in the SPP region.
|
·
|
Other Operation and Maintenance expenses increased $6 million primarily due to the following:
|
||
·
|
A $9 million increase in transmission expenses primarily due to increased SPP transmission services.
|
||
This increase was partially offset by:
|
|||
·
|
A $2 million decrease in administrative and general expenses.
|
||
·
|
Income Tax Expense decreased $3 million primarily due to a decrease in pretax book income.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||||||||
CONDENSED STATEMENTS OF INCOME
|
||||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
||||||||||||||
(in thousands)
|
||||||||||||||
(Unaudited)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
REVENUES
|
||||||||||||||
Electric Generation, Transmission and Distribution
|
$
|
317,302
|
$
|
311,310
|
$
|
577,205
|
$
|
603,832
|
||||||
Sales to AEP Affiliates
|
5,693
|
5,407
|
7,527
|
12,512
|
||||||||||
Other Revenues
|
1,692
|
594
|
2,244
|
1,498
|
||||||||||
TOTAL REVENUES
|
324,687
|
317,311
|
586,976
|
617,842
|
||||||||||
EXPENSES
|
||||||||||||||
Fuel and Other Consumables Used for Electric Generation
|
86,241
|
91,126
|
129,551
|
216,551
|
||||||||||
Purchased Electricity for Resale
|
58,835
|
44,822
|
123,490
|
70,264
|
||||||||||
Purchased Electricity from AEP Affiliates
|
6,823
|
4,260
|
17,039
|
10,458
|
||||||||||
Other Operation
|
53,659
|
48,880
|
101,466
|
95,859
|
||||||||||
Maintenance
|
24,753
|
24,853
|
53,325
|
53,178
|
||||||||||
Depreciation and Amortization
|
24,078
|
23,390
|
48,258
|
46,923
|
||||||||||
Taxes Other Than Income Taxes
|
11,827
|
10,681
|
21,824
|
21,820
|
||||||||||
TOTAL EXPENSES
|
266,216
|
248,012
|
494,953
|
515,053
|
||||||||||
OPERATING INCOME
|
58,471
|
69,299
|
92,023
|
102,789
|
||||||||||
Other Income (Expense):
|
||||||||||||||
Interest Income
|
193
|
97
|
1,121
|
1,032
|
||||||||||
Carrying Costs Income
|
110
|
529
|
317
|
1,142
|
||||||||||
Allowance for Equity Funds Used During Construction
|
844
|
468
|
1,824
|
890
|
||||||||||
Interest Expense
|
(13,259)
|
(13,766)
|
(26,599)
|
(28,477)
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
46,359
|
56,627
|
68,686
|
77,376
|
||||||||||
Income Tax Expense
|
17,927
|
21,416
|
26,561
|
29,517
|
||||||||||
NET INCOME
|
$
|
28,432
|
$
|
35,211
|
$
|
42,125
|
$
|
47,859
|
||||||
The common stock of PSO is wholly-owned by AEP.
|
||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
|||||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in thousands)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Net Income
|
$
|
28,432
|
$
|
35,211
|
$
|
42,125
|
$
|
47,859
|
|||||
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|||||||||||||
Cash Flow Hedges, Net of Tax of $137 and $193 for the Three Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively, and $227 and $222 for the Six
|
|||||||||||||
Months Ended June 30, 2013 and 2012, Respectively
|
(254)
|
(359)
|
(421)
|
(412)
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
28,178
|
$
|
34,852
|
$
|
41,704
|
$
|
47,447
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
||||||||||||||||||
CONDENSED STATEMENTS OF CHANGES IN
|
||||||||||||||||||
COMMON SHAREHOLDER'S EQUITY
|
||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
Accumulated
|
||||||||||||||||||
Other
|
||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – DECEMBER 31, 2011
|
$
|
157,230
|
$
|
364,037
|
$
|
364,389
|
$
|
7,149
|
$
|
892,805
|
||||||||
Common Stock Dividends
|
(30,000)
|
(30,000)
|
||||||||||||||||
Net Income
|
47,859
|
47,859
|
||||||||||||||||
Other Comprehensive Loss
|
(412)
|
(412)
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – JUNE 30, 2012
|
$
|
157,230
|
$
|
364,037
|
$
|
382,248
|
$
|
6,737
|
$
|
910,252
|
||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – DECEMBER 31, 2012
|
$
|
157,230
|
$
|
364,037
|
$
|
388,530
|
$
|
6,481
|
$
|
916,278
|
||||||||
Common Stock Dividends
|
(27,500)
|
(27,500)
|
||||||||||||||||
Net Income
|
42,125
|
42,125
|
||||||||||||||||
Other Comprehensive Loss
|
(421)
|
(421)
|
||||||||||||||||
TOTAL COMMON SHAREHOLDER'S
|
||||||||||||||||||
EQUITY – JUNE 30, 2013
|
$
|
157,230
|
$
|
364,037
|
$
|
403,155
|
$
|
6,060
|
$
|
930,482
|
||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
|||||||||
CONDENSED BALANCE SHEETS
|
|||||||||
ASSETS
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
CURRENT ASSETS
|
|||||||||
Cash and Cash Equivalents
|
$
|
1,042
|
$
|
1,367
|
|||||
Advances to Affiliates
|
-
|
10,558
|
|||||||
Accounts Receivable:
|
|||||||||
Customers
|
42,422
|
31,047
|
|||||||
Affiliated Companies
|
21,844
|
24,751
|
|||||||
Miscellaneous
|
2,336
|
6,216
|
|||||||
Allowance for Uncollectible Accounts
|
(713)
|
(872)
|
|||||||
Total Accounts Receivable
|
65,889
|
61,142
|
|||||||
Fuel
|
22,459
|
22,085
|
|||||||
Materials and Supplies
|
52,908
|
52,183
|
|||||||
Risk Management Assets
|
484
|
509
|
|||||||
Deferred Income Tax Benefits
|
2,459
|
7,183
|
|||||||
Accrued Tax Benefits
|
21,358
|
11,812
|
|||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
9,986
|
-
|
|||||||
Prepayments and Other Current Assets
|
4,880
|
7,633
|
|||||||
TOTAL CURRENT ASSETS
|
181,465
|
174,472
|
|||||||
PROPERTY, PLANT AND EQUIPMENT
|
|||||||||
Electric:
|
|||||||||
Generation
|
1,374,411
|
1,346,530
|
|||||||
Transmission
|
723,331
|
706,917
|
|||||||
Distribution
|
1,909,976
|
1,859,557
|
|||||||
Other Property, Plant and Equipment
|
215,260
|
210,549
|
|||||||
Construction Work in Progress
|
101,119
|
95,170
|
|||||||
Total Property, Plant and Equipment
|
4,324,097
|
4,218,723
|
|||||||
Accumulated Depreciation and Amortization
|
1,309,699
|
1,278,941
|
|||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
3,014,398
|
2,939,782
|
|||||||
OTHER NONCURRENT ASSETS
|
|||||||||
Regulatory Assets
|
181,392
|
202,328
|
|||||||
Long-term Risk Management Assets
|
-
|
31
|
|||||||
Deferred Charges and Other Noncurrent Assets
|
27,927
|
8,560
|
|||||||
TOTAL OTHER NONCURRENT ASSETS
|
209,319
|
210,919
|
|||||||
TOTAL ASSETS
|
$
|
3,405,182
|
$
|
3,325,173
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
|||||||||
CONDENSED BALANCE SHEETS
|
|||||||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
|||||||||
June 30, 2013 and December 31, 2012
|
|||||||||
(Unaudited)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||
CURRENT LIABILITIES
|
|||||||||
Advances from Affiliates
|
$
|
25,276
|
$
|
-
|
|||||
Accounts Payable:
|
|||||||||
General
|
96,206
|
87,050
|
|||||||
Affiliated Companies
|
49,320
|
36,189
|
|||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
34,108
|
764
|
|||||||
Risk Management Liabilities
|
2,111
|
5,848
|
|||||||
Customer Deposits
|
46,223
|
46,533
|
|||||||
Accrued Taxes
|
42,173
|
28,024
|
|||||||
Accrued Interest
|
12,318
|
12,654
|
|||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
-
|
7,945
|
|||||||
Other Current Liabilities
|
50,139
|
50,684
|
|||||||
TOTAL CURRENT LIABILITIES
|
357,874
|
275,691
|
|||||||
NONCURRENT LIABILITIES
|
|||||||||
Long-term Debt – Nonaffiliated
|
915,733
|
949,107
|
|||||||
Long-term Risk Management Liabilities
|
2
|
31
|
|||||||
Deferred Income Taxes
|
798,812
|
740,676
|
|||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
329,359
|
344,817
|
|||||||
Employee Benefits and Pension Obligations
|
34,853
|
34,906
|
|||||||
Deferred Credits and Other Noncurrent Liabilities
|
38,067
|
63,667
|
|||||||
TOTAL NONCURRENT LIABILITIES
|
2,116,826
|
2,133,204
|
|||||||
TOTAL LIABILITIES
|
2,474,700
|
2,408,895
|
|||||||
Rate Matters (Note 3)
|
|||||||||
Commitments and Contingencies (Note 4)
|
|||||||||
COMMON SHAREHOLDER’S EQUITY
|
|||||||||
Common Stock – Par Value – $15 Per Share:
|
|||||||||
Authorized – 11,000,000 Shares
|
|||||||||
Issued – 10,482,000 Shares
|
|||||||||
Outstanding – 9,013,000 Shares
|
157,230
|
157,230
|
|||||||
Paid-in Capital
|
364,037
|
364,037
|
|||||||
Retained Earnings
|
403,155
|
388,530
|
|||||||
Accumulated Other Comprehensive Income (Loss)
|
6,060
|
6,481
|
|||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
930,482
|
916,278
|
|||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY
|
$
|
3,405,182
|
$
|
3,325,173
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
|||||||||
CONDENSED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
Six Months Ended June 30,
|
|||||||||
2013
|
2012
|
||||||||
OPERATING ACTIVITIES
|
|||||||||
Net Income
|
$
|
42,125
|
$
|
47,859
|
|||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating
|
|||||||||
Activities:
|
|||||||||
Depreciation and Amortization
|
48,258
|
46,923
|
|||||||
Deferred Income Taxes
|
27,562
|
15,275
|
|||||||
Carrying Costs Income
|
(317)
|
(1,142)
|
|||||||
Allowance for Equity Funds Used During Construction
|
(1,824)
|
(890)
|
|||||||
Mark-to-Market of Risk Management Contracts
|
(3,779)
|
4,652
|
|||||||
Property Taxes
|
(20,353)
|
(19,347)
|
|||||||
Fuel Over/Under-Recovery, Net
|
(19,331)
|
76,098
|
|||||||
Change in Other Noncurrent Assets
|
10,999
|
1,043
|
|||||||
Change in Other Noncurrent Liabilities
|
(10,740)
|
(5,409)
|
|||||||
Changes in Certain Components of Working Capital:
|
|||||||||
Accounts Receivable, Net
|
(4,747)
|
2,560
|
|||||||
Fuel, Materials and Supplies
|
(1,099)
|
2,481
|
|||||||
Accounts Payable
|
21,581
|
(3,263)
|
|||||||
Accrued Taxes, Net
|
13,052
|
32,771
|
|||||||
Other Current Assets
|
2,257
|
919
|
|||||||
Other Current Liabilities
|
(7,298)
|
(3,987)
|
|||||||
Net Cash Flows from Operating Activities
|
96,346
|
196,543
|
|||||||
INVESTING ACTIVITIES
|
|||||||||
Construction Expenditures
|
(112,864)
|
(102,354)
|
|||||||
Change in Advances to Affiliates, Net
|
10,558
|
(80,548)
|
|||||||
Other Investing Activities
|
9,090
|
413
|
|||||||
Net Cash Flows Used for Investing Activities
|
(93,216)
|
(182,489)
|
|||||||
FINANCING ACTIVITIES
|
|||||||||
Issuance of Long-term Debt – Nonaffiliated
|
-
|
2,395
|
|||||||
Change in Advances from Affiliates, Net
|
25,276
|
-
|
|||||||
Retirement of Long-term Debt – Nonaffiliated
|
(200)
|
(32)
|
|||||||
Principal Payments for Capital Lease Obligations
|
(1,586)
|
(1,704)
|
|||||||
Dividends Paid on Common Stock
|
(27,500)
|
(15,000)
|
|||||||
Other Financing Activities
|
555
|
107
|
|||||||
Net Cash Flows Used for Financing Activities
|
(3,455)
|
(14,234)
|
|||||||
Net Decrease in Cash and Cash Equivalents
|
(325)
|
(180)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
1,367
|
1,413
|
|||||||
Cash and Cash Equivalents at End of Period
|
$
|
1,042
|
$
|
1,233
|
|||||
SUPPLEMENTARY INFORMATION
|
|||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$
|
26,155
|
$
|
26,581
|
|||||
Net Cash Paid for Income Taxes
|
6,295
|
5,992
|
|||||||
Noncash Acquisitions Under Capital Leases
|
5,594
|
759
|
|||||||
Construction Expenditures Included in Current Liabilities as of June 30,
|
26,812
|
14,881
|
|||||||
Cash Dividends Declared but Not Paid
|
-
|
15,000
|
|||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
Page
|
|
Number
|
|
Significant Accounting Matters
|
154 |
Comprehensive Income
|
154 |
Rate Matters
|
168 |
Commitments, Guarantees and Contingencies
|
178 |
Benefit Plans
|
183 |
Business Segments
|
185 |
Derivatives and Hedging
|
186 |
Fair Value Measurements
|
199 |
Income Taxes
|
211 |
Financing Activities
|
212 |
Variable Interest Entities
|
216 |
Sustainable Cost Reductions
|
219 |
RESULTS OF OPERATIONS
|
|||||||||||||
KWh Sales/Degree Days
|
|||||||||||||
Summary of KWh Energy Sales
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in millions of KWhs)
|
|||||||||||||
Retail:
|
|||||||||||||
Residential
|
1,446
|
1,570
|
2,940
|
2,952
|
|||||||||
Commercial
|
1,556
|
1,643
|
2,835
|
2,954
|
|||||||||
Industrial
|
1,465
|
1,513
|
2,724
|
2,831
|
|||||||||
Miscellaneous
|
22
|
21
|
41
|
41
|
|||||||||
Total Retail (a)
|
4,489
|
4,747
|
8,540
|
8,778
|
|||||||||
Wholesale
|
2,131
|
1,607
|
4,574
|
3,879
|
|||||||||
Total KWhs
|
6,620
|
6,354
|
13,114
|
12,657
|
|||||||||
(a)
|
Represents energy delivered to distribution customers.
|
Summary of Heating and Cooling Degree Days
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
(in degree days)
|
|||||||||||||
Actual - Heating (a)
|
68
|
4
|
800
|
427
|
|||||||||
Normal - Heating (b)
|
25
|
27
|
753
|
773
|
|||||||||
Actual - Cooling (c)
|
703
|
910
|
719
|
1,024
|
|||||||||
Normal - Cooling (b)
|
725
|
710
|
758
|
740
|
|||||||||
(a)
|
Western Region heating degree days are calculated on a 55 degree temperature base.
|
||||||||||||
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
||||||||||||
(c)
|
Western Region cooling degree days are calculated on a 65 degree temperature base.
|
Second Quarter of 2013 Compared to Second Quarter of 2012
|
|||||||||
Reconciliation of Second Quarter of 2012 to Second Quarter of 2013
|
|||||||||
Net Income
|
|||||||||
(in millions)
|
|||||||||
Second Quarter of 2012
|
$
|
55
|
|||||||
Changes in Gross Margin:
|
|||||||||
Retail Margins (a)
|
6
|
||||||||
Off-system Sales
|
1
|
||||||||
Transmission Revenues
|
6
|
||||||||
Total Change in Gross Margin
|
13
|
||||||||
Changes in Expenses and Other:
|
|||||||||
Other Operation and Maintenance
|
(9)
|
||||||||
Asset Impairments and Other Related Charges
|
13
|
||||||||
Depreciation and Amortization
|
(11)
|
||||||||
Taxes Other Than Income Taxes
|
(2)
|
||||||||
Allowance for Equity Funds Used During Construction
|
(13)
|
||||||||
Interest Expense
|
(12)
|
||||||||
Total Change in Expenses and Other
|
(34)
|
||||||||
Income Tax Expense
|
(4)
|
||||||||
Second Quarter of 2013
|
$
|
30
|
|||||||
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins increased $6 million primarily due to the following:
|
||
·
|
A $24 million increase primarily due to the Louisiana formula rate order related to the Turk Plant.
|
||
This increase was partially offset by:
|
|||
·
|
A $12 million decrease due to fuel cost adjustments.
|
||
·
|
An $8 million decrease in weather-related usage primarily due to a 23% decrease in cooling degree days.
|
||
·
|
Transmission Revenues increased $6 million primarily due rate increases for customers in the SPP region.
|
·
|
Other Operation and Maintenance expenses increased $9 million primarily due to the following:
|
||
·
|
A $5 million increase in transmission expenses primarily due to increased SPP transmission services.
|
||
·
|
A $3 million increase in generation plant operation and maintenance expenses primarily due to Turk Plant operations in addition to higher planned and unplanned plant outages.
|
||
·
|
Asset Impairments and Other Related Charges decreased $13 million due to the second quarter 2012 write-off of the expected Texas jurisdictional portion of the Turk Plant in excess of the Texas capital cost cap.
|
||
·
|
Depreciation and Amortization expenses increased $11 million primarily due to the Turk Plant being placed in service in December 2012.
|
||
·
|
Taxes Other Than Income Taxes increased $2 million primarily due to higher property taxes related to the Turk Plant being placed in service in December 2012.
|
||
·
|
Allowance for Equity Funds Used During Construction decreased $13 million primarily due to completed construction of the Turk Plant in December 2012.
|
||
·
|
Interest Expense increased $12 million primarily due to a decrease in the debt component of AFUDC due to completed construction of the Turk Plant in December 2012.
|
||
·
|
Income Tax Expense increased $4 million primarily due to other book/tax differences which are accounted for on a flow-through basis and the regulatory accounting treatment of state income taxes, partially offset by a decrease in pretax book income.
|
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012
|
|||||||||||
Reconciliation of Six Months Ended June 30, 2012 to Six Months Ended June 30, 2013
|
|||||||||||
Net Income
|
|||||||||||
(in millions)
|
|||||||||||
Six Months Ended June 30, 2012
|
$
|
91
|
|||||||||
Changes in Gross Margin:
|
|||||||||||
Retail Margins (a)
|
26
|
||||||||||
Off-system Sales
|
2
|
||||||||||
Transmission Revenues
|
8
|
||||||||||
Other Revenues
|
1
|
||||||||||
Total Change in Gross Margin
|
37
|
||||||||||
Changes in Expenses and Other:
|
|||||||||||
Other Operation and Maintenance
|
(23)
|
||||||||||
Asset Impairments and Other Related Charges
|
13
|
||||||||||
Depreciation and Amortization
|
(22)
|
||||||||||
Taxes Other Than Income Taxes
|
(5)
|
||||||||||
Interest Income
|
(1)
|
||||||||||
Allowance for Equity Funds Used During Construction
|
(26)
|
||||||||||
Interest Expense
|
(24)
|
||||||||||
Total Change in Expenses and Other
|
(88)
|
||||||||||
Income Tax Expense
|
2
|
||||||||||
Six Months Ended June 30, 2013
|
$
|
42
|
|||||||||
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
·
|
Retail Margins increased $26 million primarily due to the following:
|
|||
·
|
A $47 million increase primarily due to the Louisiana formula rate order related to the Turk Plant.
|
|||
This increase was partially offset by:
|
||||
·
|
A $10 million decrease in municipal and cooperative revenues due to formula rate adjustments.
|
|||
·
|
A $6 million decrease in weather-related usage primarily due to a 30% decrease in cooling degree days.
|
|||
·
|
A $5 million decrease due to fuel cost adjustments.
|
|||
·
|
Transmission Revenues increased $8 million primarily due to rate increases for customers in the SPP region. |
·
|
Other Operation and Maintenance expenses increased $23 million primarily due to the following:
|
||
·
|
A $9 million increase in generation plant operation and maintenance expenses primarily due to Turk Plant operations in addition to higher planned and unplanned plant outages.
|
||
·
|
An $8 million increase in transmission expenses primarily due to increased SPP transmission services.
|
||
·
|
A $2 million increase in distribution maintenance expenses primarily due to storm-related expenses.
|
||
·
|
Asset Impairments and Other Related Charges decreased $13 million due to the second quarter 2012 write-off of the expected Texas jurisdictional portion of the Turk Plant in excess of the Texas capital cost cap.
|
||
·
|
Depreciation and Amortization expenses increased $22 million primarily due to the Turk Plant being placed in service in December 2012.
|
||
·
|
Taxes Other Than Income Taxes increased $5 million primarily due to higher property taxes related to the Turk Plant being placed in service in December 2012.
|
·
|
Allowance for Equity Funds Used During Construction decreased $26 million primarily due to completed construction of the Turk Plant in December 2012.
|
||
·
|
Interest Expense increased $24 million primarily due to a decrease in the debt component of AFUDC due to completed construction of the Turk Plant in December 2012.
|
||
·
|
Income Tax Expense decreased $2 million primarily due to a decrease in pretax book income, partially offset by other book/tax differences which are accounted for on a flow-through basis and the regulatory accounting treatment of state income taxes.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
||||||||||||||
(in thousands)
|
||||||||||||||
(Unaudited)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
REVENUES
|
||||||||||||||
Electric Generation, Transmission and Distribution
|
$
|
408,852
|
$
|
383,659
|
$
|
790,129
|
$
|
723,362
|
||||||
Sales to AEP Affiliates
|
10,930
|
6,890
|
23,639
|
15,847
|
||||||||||
Other Revenues
|
391
|
397
|
722
|
723
|
||||||||||
TOTAL REVENUES
|
420,173
|
390,946
|
814,490
|
739,932
|
||||||||||
EXPENSES
|
||||||||||||||
Fuel and Other Consumables Used for Electric Generation
|
137,065
|
138,008
|
288,423
|
266,242
|
||||||||||
Purchased Electricity for Resale
|
43,008
|
26,574
|
82,768
|
62,041
|
||||||||||
Purchased Electricity from AEP Affiliates
|
4,925
|
4,589
|
5,942
|
10,844
|
||||||||||
Other Operation
|
60,795
|
54,067
|
120,243
|
105,660
|
||||||||||
Maintenance
|
32,280
|
29,757
|
60,071
|
51,019
|
||||||||||
Asset Impairments and Other Related Charges
|
-
|
13,000
|
-
|
13,000
|
||||||||||
Depreciation and Amortization
|
45,732
|
34,655
|
90,614
|
68,676
|
||||||||||
Taxes Other Than Income Taxes
|
19,336
|
17,320
|
38,758
|
34,106
|
||||||||||
TOTAL EXPENSES
|
343,141
|
317,970
|
686,819
|
611,588
|
||||||||||
OPERATING INCOME
|
77,032
|
72,976
|
127,671
|
128,344
|
||||||||||
Other Income (Expense):
|
||||||||||||||
Interest Income
|
169
|
11
|
199
|
1,132
|
||||||||||
Allowance for Equity Funds Used During Construction
|
1,368
|
14,412
|
2,392
|
28,185
|
||||||||||
Interest Expense
|
(33,547)
|
(21,710)
|
(67,537)
|
(43,712)
|
||||||||||
INCOME BEFORE INCOME TAX EXPENSE AND
|
||||||||||||||
EQUITY EARNINGS
|
45,022
|
65,689
|
62,725
|
113,949
|
||||||||||
Income Tax Expense
|
15,326
|
11,505
|
22,122
|
23,977
|
||||||||||
Equity Earnings of Unconsolidated Subsidiary
|
531
|
718
|
1,172
|
1,325
|
||||||||||
NET INCOME
|
30,227
|
54,902
|
41,775
|
91,297
|
||||||||||
Net Income Attributable to Noncontrolling Interest
|
1,056
|
1,061
|
2,146
|
2,144
|
||||||||||
EARNINGS ATTRIBUTABLE TO SWEPCo COMMON
|
||||||||||||||
SHAREHOLDER
|
$
|
29,171
|
$
|
53,841
|
$
|
39,629
|
$
|
89,153
|
||||||
The common stock of SWEPCo is wholly-owned by AEP.
|
||||||||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||
For the Three and Six Months Ended June 30, 2013 and 2012
|
|||||||||||||
(in thousands)
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||
Net Income
|
$
|
30,227
|
$
|
54,902
|
$
|
41,775
|
$
|
91,297
|
|||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|||||||||||||
Cash Flow Hedges, Net of Tax of $264 and $213 for the Three Months Ended
|
|||||||||||||
June 30, 2013 and 2012, Respectively, and $585 and $743 for the
|
|||||||||||||
Six Months Ended June 30, 2013 and 2012, Respectively
|
490
|
396
|
1,086
|
(1,379)
|
|||||||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $34
|
|||||||||||||
and $90 for the Three Months Ended June 30, 2013 and 2012,
|
|||||||||||||
Respectively, and $68 and $179 for the Six Months Ended June 30,
|
|||||||||||||
2013 and 2012, Respectively
|
(64)
|
167
|
(127)
|
332
|
|||||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
426
|
563
|
959
|
(1,047)
|
|||||||||
TOTAL COMPREHENSIVE INCOME
|
30,653
|
55,465
|
42,734
|
90,250
|
|||||||||
Total Comprehensive Income Attributable to Noncontrolling Interest
|
1,056
|
1,061
|
2,146
|
2,144
|
|||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SWEPCo
|
|||||||||||||
COMMON SHAREHOLDER
|
$
|
29,597
|
$
|
54,404
|
$
|
40,588
|
$
|
88,106
|
|||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|||||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||
SWEPCo Common Shareholder
|
|||||||||||||||||||||
Accumulated
|
|||||||||||||||||||||
Other
|
|||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Noncontrolling
|
|||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Interest
|
Total
|
||||||||||||||||
TOTAL EQUITY – DECEMBER 31, 2011
|
$
|
135,660
|
$
|
674,606
|
$
|
1,029,915
|
$
|
(26,815)
|
$
|
391
|
$
|
1,813,757
|
|||||||||
Common Stock Dividends – Nonaffiliated
|
(2,195)
|
(2,195)
|
|||||||||||||||||||
Net Income
|
89,153
|
2,144
|
91,297
|
||||||||||||||||||
Other Comprehensive Loss
|
(1,047)
|
(1,047)
|
|||||||||||||||||||
TOTAL EQUITY – JUNE 30, 2012
|
$
|
135,660
|
$
|
674,606
|
$
|
1,119,068
|
$
|
(27,862)
|
$
|
340
|
$
|
1,901,812
|
|||||||||
TOTAL EQUITY – DECEMBER 31, 2012
|
$
|
135,660
|
$
|
674,606
|
$
|
1,228,806
|
$
|
(17,860)
|
$
|
261
|
$
|
2,021,473
|
|||||||||
Common Stock Dividends
|
(62,500)
|
(62,500)
|
|||||||||||||||||||
Common Stock Dividends – Nonaffiliated
|
(2,040)
|
(2,040)
|
|||||||||||||||||||
Net Income
|
39,629
|
2,146
|
41,775
|
||||||||||||||||||
Other Comprehensive Income
|
959
|
959
|
|||||||||||||||||||
TOTAL EQUITY – JUNE 30, 2013
|
$
|
135,660
|
$
|
674,606
|
$
|
1,205,935
|
$
|
(16,901)
|
$
|
367
|
$
|
1,999,667
|
|||||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||
ASSETS
|
||||||||||
June 30, 2013 and December 31, 2012
|
||||||||||
(in thousands)
|
||||||||||
(Unaudited)
|
||||||||||
June 30,
|
December 31,
|
|||||||||
2013
|
2012
|
|||||||||
CURRENT ASSETS
|
||||||||||
Cash and Cash Equivalents
|
$
|
11,840
|
$
|
2,036
|
||||||
Advances to Affiliates
|
14,806
|
153,829
|
||||||||
Accounts Receivable:
|
||||||||||
Customers
|
42,443
|
39,349
|
||||||||
Affiliated Companies
|
30,602
|
26,288
|
||||||||
Miscellaneous
|
20,958
|
35,514
|
||||||||
Allowance for Uncollectible Accounts
|
(2,045)
|
(2,041)
|
||||||||
Total Accounts Receivable
|
91,958
|
99,110
|
||||||||
Fuel
|
||||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $36,893 and
|
||||||||||
$42,084, Respectively, Related to Sabine)
|
137,238
|
134,234
|
||||||||
Materials and Supplies
|
72,660
|
69,212
|
||||||||
Risk Management Assets
|
398
|
695
|
||||||||
Deferred Income Tax Benefits
|
104,894
|
101,403
|
||||||||
Accrued Tax Benefits
|
30,801
|
9,616
|
||||||||
Regulatory Asset for Under-Recovered Fuel Costs
|
14,210
|
8,527
|
||||||||
Prepayments and Other Current Assets
|
12,795
|
16,489
|
||||||||
TOTAL CURRENT ASSETS
|
491,600
|
595,151
|
||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||||
Electric:
|
||||||||||
Generation
|
3,919,327
|
3,888,230
|
||||||||
Transmission
|
1,140,451
|
1,115,795
|
||||||||
Distribution
|
1,794,684
|
1,758,988
|
||||||||
Other Property, Plant and Equipment
|
||||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $288,776 and
|
||||||||||
$287,032, Respectively, Related to Sabine)
|
695,944
|
688,254
|
||||||||
Construction Work in Progress
|
153,715
|
99,783
|
||||||||
Total Property, Plant and Equipment
|
7,704,121
|
7,551,050
|
||||||||
Accumulated Depreciation and Amortization
|
||||||||||
(June 30, 2013 and December 31, 2012 Amounts Include $125,834 and
|
||||||||||
$116,597, Respectively, Related to Sabine)
|
2,353,562
|
2,284,258
|
||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
5,350,559
|
5,266,792
|
||||||||
OTHER NONCURRENT ASSETS
|
||||||||||
Regulatory Assets
|
407,408
|
403,278
|
||||||||
Deferred Charges and Other Noncurrent Assets
|
100,880
|
76,432
|
||||||||
TOTAL OTHER NONCURRENT ASSETS
|
508,288
|
479,710
|
||||||||
TOTAL ASSETS
|
$
|
6,350,447
|
$
|
6,341,653
|
||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||
LIABILITIES AND EQUITY
|
||||||||||
June 30, 2013 and December 31, 2012
|
||||||||||
(Unaudited)
|
||||||||||
June 30,
|
December 31,
|
|||||||||
2013
|
2012
|
|||||||||
(in thousands)
|
||||||||||
CURRENT LIABILITIES
|
||||||||||
Accounts Payable:
|
||||||||||
General
|
$
|
107,438
|
$
|
126,768
|
||||||
Affiliated Companies
|
64,553
|
62,835
|
||||||||
Short-term Debt – Nonaffiliated
|
-
|
2,603
|
||||||||
Long-term Debt Due Within One Year – Nonaffiliated
|
3,250
|
3,250
|
||||||||
Risk Management Liabilities
|
941
|
1,128
|
||||||||
Customer Deposits
|
55,658
|
69,393
|
||||||||
Accrued Taxes
|
63,796
|
31,532
|
||||||||
Accrued Interest
|
43,335
|
43,950
|
||||||||
Obligations Under Capital Leases
|
17,978
|
17,599
|
||||||||
Regulatory Liability for Over-Recovered Fuel Costs
|
5,102
|
16,761
|
||||||||
Other Current Liabilities
|
66,388
|
64,997
|
||||||||
TOTAL CURRENT LIABILITIES
|
428,439
|
440,816
|
||||||||
NONCURRENT LIABILITIES
|
||||||||||
Long-term Debt – Nonaffiliated
|
2,041,530
|
2,042,978
|
||||||||
Long-term Risk Management Liabilities
|
3
|
-
|
||||||||
Deferred Income Taxes
|
1,122,609
|
1,075,551
|
||||||||
Regulatory Liabilities and Deferred Investment Tax Credits
|
472,434
|
476,471
|
||||||||
Asset Retirement Obligations
|
86,998
|
78,017
|
||||||||
Employee Benefits and Pension Obligations
|
41,795
|
38,240
|
||||||||
Obligations Under Capital Leases
|
107,728
|
114,161
|
||||||||
Deferred Credits and Other Noncurrent Liabilities
|
49,244
|
53,946
|
||||||||
TOTAL NONCURRENT LIABILITIES
|
3,922,341
|
3,879,364
|
||||||||
TOTAL LIABILITIES
|
4,350,780
|
4,320,180
|
||||||||
Rate Matters (Note 3)
|
||||||||||
Commitments and Contingencies (Note 4)
|
||||||||||
EQUITY
|
||||||||||
Common Stock – Par Value – $18 Per Share:
|
||||||||||
Authorized – 7,600,000 Shares
|
||||||||||
Outstanding – 7,536,640 Shares
|
135,660
|
135,660
|
||||||||
Paid-in Capital
|
674,606
|
674,606
|
||||||||
Retained Earnings
|
1,205,935
|
1,228,806
|
||||||||
Accumulated Other Comprehensive Income (Loss)
|
(16,901)
|
(17,860)
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
1,999,300
|
2,021,212
|
||||||||
Noncontrolling Interest
|
367
|
261
|
||||||||
TOTAL EQUITY
|
1,999,667
|
2,021,473
|
||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
6,350,447
|
$
|
6,341,653
|
||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
For the Six Months Ended June 30, 2013 and 2012
|
|||||||||
(in thousands)
|
|||||||||
(Unaudited)
|
|||||||||
Six Months Ended June 30,
|
|||||||||
2013
|
2012
|
||||||||
OPERATING ACTIVITIES
|
|||||||||
Net Income
|
$
|
41,775
|
$
|
91,297
|
|||||
Adjustments to Reconcile Net Income to Net Cash Flows from
|
|||||||||
Operating Activities:
|
|||||||||
Depreciation and Amortization
|
90,614
|
68,676
|
|||||||
Deferred Income Taxes
|
39,624
|
138,594
|
|||||||
Asset Impairments and Other Related Charges
|
-
|
13,000
|
|||||||
Allowance for Equity Funds Used During Construction
|
(2,392)
|
(28,185)
|
|||||||
Mark-to-Market of Risk Management Contracts
|
35
|
1,927
|
|||||||
Property Taxes
|
(23,607)
|
(19,790)
|
|||||||
Fuel Over/Under-Recovery, Net
|
(17,350)
|
(4,398)
|
|||||||
Change in Other Noncurrent Assets
|
(3,639)
|
1,678
|
|||||||
Change in Other Noncurrent Liabilities
|
5,647
|
17,707
|
|||||||
Changes in Certain Components of Working Capital:
|
|||||||||
Accounts Receivable, Net
|
6,979
|
(12,989)
|
|||||||
Fuel, Materials and Supplies
|
(6,452)
|
(16,901)
|
|||||||
Accounts Payable
|
1,277
|
2,938
|
|||||||
Accrued Taxes, Net
|
11,079
|
(40,616)
|
|||||||
Other Current Assets
|
3,541
|
(7,685)
|
|||||||
Other Current Liabilities
|
(12,121)
|
(6,367)
|
|||||||
Net Cash Flows from Operating Activities
|
135,010
|
198,886
|
|||||||
INVESTING ACTIVITIES
|
|||||||||
Construction Expenditures
|
(187,607)
|
(246,957)
|
|||||||
Change in Advances to Affiliates, Net
|
139,023
|
(97,022)
|
|||||||
Other Investing Activities
|
342
|
(1,927)
|
|||||||
Net Cash Flows Used for Investing Activities
|
(48,242)
|
(345,906)
|
|||||||
FINANCING ACTIVITIES
|
|||||||||
Issuance of Long-term Debt – Nonaffiliated
|
-
|
336,576
|
|||||||
Credit Facility Borrowings
|
17,091
|
21,462
|
|||||||
Change in Advances from Affiliates, Net
|
-
|
(132,473)
|
|||||||
Retirement of Long-term Debt – Nonaffiliated
|
(1,625)
|
(20,000)
|
|||||||
Credit Facility Repayments
|
(19,694)
|
(38,478)
|
|||||||
Principal Payments for Capital Lease Obligations
|
(8,877)
|
(7,899)
|
|||||||
Dividends Paid on Common Stock
|
(62,500)
|
-
|
|||||||
Dividends Paid on Common Stock – Nonaffiliated
|
(2,040)
|
(2,195)
|
|||||||
Other Financing Activities
|
681
|
3,843
|
|||||||
Net Cash Flows from (Used for) Financing Activities
|
(76,964)
|
160,836
|
|||||||
Net Increase in Cash and Cash Equivalents
|
9,804
|
13,816
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
2,036
|
801
|
|||||||
Cash and Cash Equivalents at End of Period
|
$
|
11,840
|
$
|
14,617
|
|||||
SUPPLEMENTARY INFORMATION
|
|||||||||
Cash Paid for Interest, Net of Capitalized Amounts
|
$
|
61,663
|
$
|
32,595
|
|||||
Net Cash Paid (Received) for Income Taxes
|
1,161
|
(47,741)
|
|||||||
Noncash Acquisitions Under Capital Leases
|
2,851
|
12,350
|
|||||||
Construction Expenditures Included in Current Liabilities as of June 30,
|
35,940
|
79,960
|
|||||||
See Condensed Notes to Condensed Financial Statements of Registrant Subsidiaries beginning on page 153.
|
Page
|
|
Number
|
|
Significant Accounting Matters
|
154 |
Comprehensive Income
|
154 |
Rate Matters
|
168 |
Commitments, Guarantees and Contingencies
|
178 |
Benefit Plans
|
183 |
Business Segments
|
185 |
Derivatives and Hedging
|
186 |
Fair Value Measurements
|
199 |
Income Taxes
|
211 |
Financing Activities
|
212 |
Variable Interest Entities
|
216 |
Sustainable Cost Reductions
|
219 |
|
INDEX OF CONDENSED NOTES TO CONDENSED FINANCIAL STATEMENTS OF
|
Page
|
||
Number
|
||
Significant Accounting Matters
|
APCo, I&M, OPCo, PSO, SWEPCo
|
154 |
Comprehensive Income
|
APCo, I&M, OPCo, PSO, SWEPCo
|
154 |
Rate Matters
|
APCo, I&M, OPCo, PSO, SWEPCo
|
168 |
Commitments, Guarantees and Contingencies
|
APCo, I&M, OPCo, PSO, SWEPCo
|
178 |
Disposition and Impairment
|
OPCo
|
182 |
Benefit Plans
|
APCo, I&M, OPCo, PSO, SWEPCo
|
183 |
Business Segments
|
APCo, I&M, OPCo, PSO, SWEPCo
|
185 |
Derivatives and Hedging
|
APCo, I&M, OPCo, PSO, SWEPCo
|
186 |
Fair Value Measurements
|
APCo, I&M, OPCo, PSO, SWEPCo
|
199 |
Income Taxes
|
APCo, I&M, OPCo, PSO, SWEPCo
|
211 |
Financing Activities
|
APCo, I&M, OPCo, PSO, SWEPCo
|
212 |
Variable Interest Entities
|
APCo, I&M, OPCo, PSO, SWEPCo
|
216 |
Sustainable Cost Reductions
|
APCo, I&M, OPCo, PSO, SWEPCo
|
219 |
APCo
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of March 31, 2013
|
$
|
361
|
$
|
2,330
|
$
|
(30,973)
|
$
|
(28,282)
|
||||||
Change in Fair Value Recognized in AOCI
|
(63)
|
1
|
-
|
(62)
|
||||||||||
Amounts Reclassified from AOCI
|
(101)
|
252
|
358
|
509
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
(164)
|
253
|
358
|
447
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
197
|
$
|
2,583
|
$
|
(30,615)
|
$
|
(27,835)
|
APCo
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of December 31, 2012
|
$
|
(644)
|
$
|
2,077
|
$
|
(31,331)
|
$
|
(29,898)
|
||||||
Change in Fair Value Recognized in AOCI
|
731
|
-
|
-
|
731
|
||||||||||
Amounts Reclassified from AOCI
|
110
|
506
|
716
|
1,332
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
841
|
506
|
716
|
2,063
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
197
|
$
|
2,583
|
$
|
(30,615)
|
$
|
(27,835)
|
I&M
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of March 31, 2013
|
$
|
236
|
$
|
(17,206)
|
$
|
(8,614)
|
$
|
(25,584)
|
||||||
Change in Fair Value Recognized in AOCI
|
(40)
|
(1)
|
-
|
(41)
|
||||||||||
Amounts Reclassified from AOCI
|
(49)
|
411
|
175
|
537
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
(89)
|
410
|
175
|
496
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
147
|
$
|
(16,796)
|
$
|
(8,439)
|
$
|
(25,088)
|
I&M
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of December 31, 2012
|
$
|
(446)
|
$
|
(19,647)
|
$
|
(8,790)
|
$
|
(28,883)
|
||||||
Change in Fair Value Recognized in AOCI
|
492
|
2,248
|
-
|
2,740
|
||||||||||
Amounts Reclassified from AOCI
|
101
|
603
|
351
|
1,055
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
593
|
2,851
|
351
|
3,795
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
147
|
$
|
(16,796)
|
$
|
(8,439)
|
$
|
(25,088)
|
OPCo
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of March 31, 2013
|
$
|
494
|
$
|
7,755
|
$
|
(169,639)
|
$
|
(161,390)
|
||||||
Change in Fair Value Recognized in AOCI
|
(109)
|
-
|
-
|
(109)
|
||||||||||
Amounts Reclassified from AOCI
|
(96)
|
(340)
|
3,270
|
2,834
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
(205)
|
(340)
|
3,270
|
2,725
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
289
|
$
|
7,415
|
$
|
(166,369)
|
$
|
(158,665)
|
OPCo
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of December 31, 2012
|
$
|
(912)
|
$
|
8,095
|
$
|
(172,908)
|
$
|
(165,725)
|
||||||
Change in Fair Value Recognized in AOCI
|
993
|
-
|
-
|
993
|
||||||||||
Amounts Reclassified from AOCI
|
208
|
(680)
|
6,539
|
6,067
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
1,201
|
(680)
|
6,539
|
7,060
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
289
|
$
|
7,415
|
$
|
(166,369)
|
$
|
(158,665)
|
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||
Cash Flow Hedges
|
||||||||||
Interest Rate and
|
||||||||||
Commodity
|
Foreign Currency
|
Total
|
||||||||
(in thousands)
|
||||||||||
Balance in AOCI as of March 31, 2013
|
$
|
44
|
$
|
6,270
|
$
|
6,314
|
||||
Change in Fair Value Recognized in AOCI
|
(61)
|
1
|
(60)
|
|||||||
Amounts Reclassified from AOCI
|
(4)
|
(190)
|
(194)
|
|||||||
Net Current Period Other
|
||||||||||
Comprehensive Income
|
(65)
|
(189)
|
(254)
|
|||||||
Balance in AOCI as of June 30, 2013
|
$
|
(21)
|
$
|
6,081
|
$
|
6,060
|
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||
Cash Flow Hedges
|
||||||||||
Interest Rate and
|
||||||||||
Commodity
|
Foreign Currency
|
Total
|
||||||||
(in thousands)
|
||||||||||
Balance in AOCI as of December 31, 2012
|
$
|
21
|
$
|
6,460
|
$
|
6,481
|
||||
Change in Fair Value Recognized in AOCI
|
(25)
|
1
|
(24)
|
|||||||
Amounts Reclassified from AOCI
|
(17)
|
(380)
|
(397)
|
|||||||
Net Current Period Other
|
||||||||||
Comprehensive Income
|
(42)
|
(379)
|
(421)
|
|||||||
Balance in AOCI as of June 30, 2013
|
$
|
(21)
|
$
|
6,081
|
$
|
6,060
|
SWEPCo
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of March 31, 2013
|
$
|
51
|
$
|
(15,004)
|
$
|
(2,374)
|
$
|
(17,327)
|
||||||
Change in Fair Value Recognized in AOCI
|
(71)
|
-
|
-
|
(71)
|
||||||||||
Amounts Reclassified from AOCI
|
(6)
|
567
|
(64)
|
497
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
(77)
|
567
|
(64)
|
426
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
(26)
|
$
|
(14,437)
|
$
|
(2,438)
|
$
|
(16,901)
|
SWEPCo
|
||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component
|
||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||
Cash Flow Hedges
|
||||||||||||||
Interest Rate and
|
Pension
|
|||||||||||||
Commodity
|
Foreign Currency
|
and OPEB
|
Total
|
|||||||||||
(in thousands)
|
||||||||||||||
Balance in AOCI as of December 31, 2012
|
$
|
22
|
$
|
(15,571)
|
$
|
(2,311)
|
$
|
(17,860)
|
||||||
Change in Fair Value Recognized in AOCI
|
(27)
|
-
|
-
|
(27)
|
||||||||||
Amounts Reclassified from AOCI
|
(21)
|
1,134
|
(127)
|
986
|
||||||||||
Net Current Period Other
|
||||||||||||||
Comprehensive Income
|
(48)
|
1,134
|
(127)
|
959
|
||||||||||
Balance in AOCI as of June 30, 2013
|
$
|
(26)
|
$
|
(14,437)
|
$
|
(2,438)
|
$
|
(16,901)
|
APCo
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Three Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Electric Generation, Transmission and Distribution Revenues
|
$
|
2
|
||||
Purchased Electricity for Resale
|
(31)
|
|||||
Other Operation Expense
|
(13)
|
|||||
Maintenance Expense
|
(2)
|
|||||
Property, Plant and Equipment
|
(5)
|
|||||
Regulatory Assets (a)
|
(108)
|
|||||
Subtotal - Commodity
|
(157)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
389
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
389
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
232
|
|||||
Income Tax (Expense) Credit
|
81
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
151
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(1,283)
|
|||||
Actuarial (Gains)/Losses
|
1,834
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
551
|
|||||
Income Tax (Expense) Credit
|
193
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
358
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
509
|
APCo
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Six Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Electric Generation, Transmission and Distribution Revenues
|
$
|
22
|
||||
Purchased Electricity for Resale
|
26
|
|||||
Other Operation Expense
|
(24)
|
|||||
Maintenance Expense
|
(18)
|
|||||
Property, Plant and Equipment
|
(19)
|
|||||
Regulatory Assets (a)
|
181
|
|||||
Subtotal - Commodity
|
168
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
779
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
779
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
947
|
|||||
Income Tax (Expense) Credit
|
331
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
616
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(2,565)
|
|||||
Actuarial (Gains)/Losses
|
3,667
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
1,102
|
|||||
Income Tax (Expense) Credit
|
386
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
716
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
1,332
|
I&M
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Three Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Electric Generation, Transmission and Distribution Revenues
|
$
|
32
|
||||
Purchased Electricity for Resale
|
(81)
|
|||||
Other Operation Expense
|
(8)
|
|||||
Maintenance Expense
|
(2)
|
|||||
Property, Plant and Equipment
|
(3)
|
|||||
Regulatory Assets (a)
|
(12)
|
|||||
Subtotal - Commodity
|
(74)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
631
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
631
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
557
|
|||||
Income Tax (Expense) Credit
|
195
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
362
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(198)
|
|||||
Actuarial (Gains)/Losses
|
468
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
270
|
|||||
Income Tax (Expense) Credit
|
95
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
175
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
537
|
I&M
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Six Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Electric Generation, Transmission and Distribution Revenues
|
$
|
84
|
||||
Purchased Electricity for Resale
|
68
|
|||||
Other Operation Expense
|
(15)
|
|||||
Maintenance Expense
|
(9)
|
|||||
Property, Plant and Equipment
|
(10)
|
|||||
Regulatory Assets (a)
|
38
|
|||||
Subtotal - Commodity
|
156
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
927
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
927
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
1,083
|
|||||
Income Tax (Expense) Credit
|
379
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
704
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(397)
|
|||||
Actuarial (Gains)/Losses
|
937
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
540
|
|||||
Income Tax (Expense) Credit
|
189
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
351
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
1,055
|
OPCo
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Three Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Electric Generation, Transmission and Distribution Revenues
|
$
|
81
|
||||
Purchased Electricity for Resale
|
(202)
|
|||||
Other Operation Expense
|
(19)
|
|||||
Maintenance Expense
|
(3)
|
|||||
Property, Plant and Equipment
|
(4)
|
|||||
Subtotal - Commodity
|
(147)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Depreciation and Amortization Expense
|
1
|
|||||
Interest Expense
|
(525)
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
(524)
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(671)
|
|||||
Income Tax (Expense) Credit
|
(235)
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
(436)
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(1,469)
|
|||||
Actuarial (Gains)/Losses
|
6,499
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
5,030
|
|||||
Income Tax (Expense) Credit
|
1,760
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
3,270
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
2,834
|
OPCo
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Six Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Electric Generation, Transmission and Distribution Revenues
|
$
|
215
|
||||
Purchased Electricity for Resale
|
180
|
|||||
Other Operation Expense
|
(37)
|
|||||
Maintenance Expense
|
(15)
|
|||||
Property, Plant and Equipment
|
(23)
|
|||||
Subtotal - Commodity
|
320
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Depreciation and Amortization Expense
|
3
|
|||||
Interest Expense
|
(1,049)
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
(1,046)
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(726)
|
|||||
Income Tax (Expense) Credit
|
(254)
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
(472)
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(2,937)
|
|||||
Actuarial (Gains)/Losses
|
12,996
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
10,059
|
|||||
Income Tax (Expense) Credit
|
3,520
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
6,539
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
6,067
|
PSO
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Three Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Other Operation Expense
|
$
|
(6)
|
||||
Maintenance Expense
|
-
|
|||||
Property, Plant and Equipment
|
-
|
|||||
Subtotal - Commodity
|
(6)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
(292)
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
(292)
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(298)
|
|||||
Income Tax (Expense) Credit
|
(104)
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
(194)
|
PSO
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Six Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Other Operation Expense
|
$
|
(15)
|
||||
Maintenance Expense
|
(4)
|
|||||
Property, Plant and Equipment
|
(7)
|
|||||
Subtotal - Commodity
|
(26)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
(584)
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
(584)
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(610)
|
|||||
Income Tax (Expense) Credit
|
(213)
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
(397)
|
SWEPCo
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Three Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Other Operation Expense
|
$
|
(6)
|
||||
Maintenance Expense
|
(1)
|
|||||
Property, Plant and Equipment
|
(1)
|
|||||
Subtotal - Commodity
|
(8)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
872
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
872
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
864
|
|||||
Income Tax (Expense) Credit
|
303
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
561
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(447)
|
|||||
Actuarial (Gains)/Losses
|
348
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(99)
|
|||||
Income Tax (Expense) Credit
|
(35)
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
(64)
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
497
|
SWEPCo
|
||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss)
|
||||||
For the Six Months Ended June 30, 2013
|
||||||
Amount of
|
||||||
(Gain) Loss
|
||||||
Reclassified
|
||||||
from AOCI
|
||||||
Gains and Losses on Cash Flow Hedges
|
(in thousands)
|
|||||
Commodity:
|
||||||
Other Operation Expense
|
$
|
(16)
|
||||
Maintenance Expense
|
(7)
|
|||||
Property, Plant and Equipment
|
(8)
|
|||||
Subtotal - Commodity
|
(31)
|
|||||
Interest Rate and Foreign Currency:
|
||||||
Interest Expense
|
1,744
|
|||||
Subtotal - Interest Rate and Foreign Currency
|
1,744
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
1,713
|
|||||
Income Tax (Expense) Credit
|
600
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
1,113
|
|||||
Amortization of Pension and OPEB
|
||||||
Prior Service Cost (Credit)
|
(892)
|
|||||
Actuarial (Gains)/Losses
|
696
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Credit
|
(196)
|
|||||
Income Tax (Expense) Credit
|
(69)
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
(127)
|
|||||
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit
|
$
|
986
|
|
Represents realized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
||||||||||||||||||
For the Three Months Ended June 30, 2012
|
||||||||||||||||||
Commodity Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Balance in AOCI as of March 31, 2012
|
$
|
(2,117)
|
$
|
(1,508)
|
$
|
(3,149)
|
$
|
67
|
$
|
66
|
||||||||
Changes in Fair Value Recognized in AOCI
|
(403)
|
(234)
|
(525)
|
(155)
|
(149)
|
|||||||||||||
Amount of (Gain) or Loss Reclassified
|
||||||||||||||||||
from AOCI to Statement of Income/within
|
||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||
Electric Generation, Transmission, and
|
||||||||||||||||||
Distribution Revenues
|
(3)
|
(9)
|
(24)
|
-
|
-
|
|||||||||||||
Purchased Electricity for Resale
|
157
|
419
|
1,099
|
-
|
-
|
|||||||||||||
Other Operation Expense
|
(14)
|
(8)
|
(19)
|
(9)
|
(7)
|
|||||||||||||
Maintenance Expense
|
(6)
|
(3)
|
(8)
|
(2)
|
(2)
|
|||||||||||||
Property, Plant and Equipment
|
(10)
|
(6)
|
(13)
|
(3)
|
(5)
|
|||||||||||||
Regulatory Assets (a)
|
576
|
103
|
-
|
-
|
-
|
|||||||||||||
Balance in AOCI as of June 30, 2012
|
$
|
(1,820)
|
$
|
(1,246)
|
$
|
(2,639)
|
$
|
(102)
|
$
|
(97)
|
||||||||
Interest Rate and
|
||||||||||||||||||
Foreign Currency Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Balance in AOCI as of March 31, 2012
|
$
|
1,293
|
$
|
(11,320)
|
$
|
9,114
|
$
|
7,029
|
$
|
(17,365)
|
||||||||
Changes in Fair Value Recognized in AOCI
|
-
|
(7,844)
|
-
|
-
|
(1)
|
|||||||||||||
Amount of (Gain) or Loss Reclassified
|
||||||||||||||||||
from AOCI to Statement of Income/within
|
||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||
Depreciation and Amortization
|
||||||||||||||||||
Expense
|
-
|
-
|
1
|
-
|
-
|
|||||||||||||
Interest Expense
|
269
|
149
|
(341)
|
(190)
|
560
|
|||||||||||||
Balance in AOCI as of June 30, 2012
|
$
|
1,562
|
$
|
(19,015)
|
$
|
8,774
|
$
|
6,839
|
$
|
(16,806)
|
||||||||
Total Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Balance in AOCI as of March 31, 2012
|
$
|
(824)
|
$
|
(12,828)
|
$
|
5,965
|
$
|
7,096
|
$
|
(17,299)
|
||||||||
Changes in Fair Value Recognized in AOCI
|
(403)
|
(8,078)
|
(525)
|
(155)
|
(150)
|
|||||||||||||
Amount of (Gain) or Loss Reclassified
|
||||||||||||||||||
from AOCI to Statement of Income/within
|
||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||
Electric Generation, Transmission, and
|
||||||||||||||||||
Distribution Revenues
|
(3)
|
(9)
|
(24)
|
-
|
-
|
|||||||||||||
Purchased Electricity for Resale
|
157
|
419
|
1,099
|
-
|
-
|
|||||||||||||
Other Operation Expense
|
(14)
|
(8)
|
(19)
|
(9)
|
(7)
|
|||||||||||||
Maintenance Expense
|
(6)
|
(3)
|
(8)
|
(2)
|
(2)
|
|||||||||||||
Depreciation and Amortization
|
||||||||||||||||||
Expense
|
-
|
-
|
1
|
-
|
-
|
|||||||||||||
Interest Expense
|
269
|
149
|
(341)
|
(190)
|
560
|
|||||||||||||
Property, Plant and Equipment
|
(10)
|
(6)
|
(13)
|
(3)
|
(5)
|
|||||||||||||
Regulatory Assets (a)
|
576
|
103
|
-
|
-
|
-
|
|||||||||||||
Balance in AOCI as of June 30, 2012
|
$
|
(258)
|
$
|
(20,261)
|
$
|
6,135
|
$
|
6,737
|
$
|
(16,903)
|
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
|
||||||||||||||||||
For the Six Months Ended June 30, 2012
|
||||||||||||||||||
Commodity Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Balance in AOCI as of December 31, 2011
|
$
|
(1,309)
|
$
|
(819)
|
$
|
(1,748)
|
$
|
(69)
|
$
|
(62)
|
||||||||
Changes in Fair Value Recognized in AOCI
|
(2,248)
|
(1,628)
|
(3,402)
|
(16)
|
(17)
|
|||||||||||||
Amount of (Gain) or Loss Reclassified
|
||||||||||||||||||
from AOCI to Statement of Income/within
|
||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||
Electric Generation, Transmission, and
|
||||||||||||||||||
Distribution Revenues
|
(3)
|
(9)
|
(24)
|
-
|
-
|
|||||||||||||
Purchased Electricity for Resale
|
376
|
986
|
2,585
|
-
|
-
|
|||||||||||||
Other Operation Expense
|
(16)
|
(10)
|
(24)
|
(11)
|
(9)
|
|||||||||||||
Maintenance Expense
|
(9)
|
(4)
|
(10)
|
(2)
|
(3)
|
|||||||||||||
Property, Plant and Equipment
|
(12)
|
(7)
|
(16)
|
(4)
|
(6)
|
|||||||||||||
Regulatory Assets (a)
|
1,401
|
245
|
-
|
-
|
-
|
|||||||||||||
Balance in AOCI as of June 30, 2012
|
$
|
(1,820)
|
$
|
(1,246)
|
$
|
(2,639)
|
$
|
(102)
|
$
|
(97)
|
||||||||
Interest Rate and
|
||||||||||||||||||
Foreign Currency Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Balance in AOCI as of December 31, 2011
|
$
|
1,024
|
$
|
(14,465)
|
$
|
9,454
|
$
|
7,218
|
$
|
(15,462)
|
||||||||
Changes in Fair Value Recognized in AOCI
|
-
|
(4,848)
|
-
|
-
|
(2,777)
|
|||||||||||||
Amount of (Gain) or Loss Reclassified
|
||||||||||||||||||
from AOCI to Statement of Income/within
|
||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||
Depreciation and Amortization
|
||||||||||||||||||
Expense
|
-
|
-
|
2
|
-
|
-
|
|||||||||||||
Interest Expense
|
538
|
298
|
(682)
|
(379)
|
1,433
|
|||||||||||||
Balance in AOCI as of June 30, 2012
|
$
|
1,562
|
$
|
(19,015)
|
$
|
8,774
|
$
|
6,839
|
$
|
(16,806)
|
||||||||
Total Contracts
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Balance in AOCI as of December 31, 2011
|
$
|
(285)
|
$
|
(15,284)
|
$
|
7,706
|
$
|
7,149
|
$
|
(15,524)
|
||||||||
Changes in Fair Value Recognized in AOCI
|
(2,248)
|
(6,476)
|
(3,402)
|
(16)
|
(2,794)
|
|||||||||||||
Amount of (Gain) or Loss Reclassified
|
||||||||||||||||||
from AOCI to Statement of Income/within
|
||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||
Electric Generation, Transmission, and
|
||||||||||||||||||
Distribution Revenues
|
(3)
|
(9)
|
(24)
|
-
|
-
|
|||||||||||||
Purchased Electricity for Resale
|
376
|
986
|
2,585
|
-
|
-
|
|||||||||||||
Other Operation Expense
|
(16)
|
(10)
|
(24)
|
(11)
|
(9)
|
|||||||||||||
Maintenance Expense
|
(9)
|
(4)
|
(10)
|
(2)
|
(3)
|
|||||||||||||
Depreciation and Amortization
|
||||||||||||||||||
Expense
|
-
|
-
|
2
|
-
|
-
|
|||||||||||||
Interest Expense
|
538
|
298
|
(682)
|
(379)
|
1,433
|
|||||||||||||
Property, Plant and Equipment
|
(12)
|
(7)
|
(16)
|
(4)
|
(6)
|
|||||||||||||
Regulatory Assets (a)
|
1,401
|
245
|
-
|
-
|
-
|
|||||||||||||
Balance in AOCI as of June 30, 2012
|
$
|
(258)
|
$
|
(20,261)
|
$
|
6,135
|
$
|
6,737
|
$
|
(16,903)
|
Represents realized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the condensed balance sheets.
|
APCo
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
Noncurrent Regulatory Assets
|
(in thousands)
|
||||||||
Regulatory assets not yet being recovered pending future proceedings:
|
|||||||||
Regulatory Assets Currently Not Earning a Return
|
|||||||||
Storm Related Costs
|
$
|
65,206
|
$
|
94,458
|
|||||
Virginia Environmental Rate Adjustment Clause
|
28,777
|
29,320
|
|||||||
Mountaineer Carbon Capture and Storage
|
|||||||||
Product Validation Facility
|
14,155
|
14,155
|
|||||||
Dresden Plant Operating Costs
|
8,760
|
8,758
|
|||||||
Deferred Wind Power Costs
|
-
|
5,143
|
|||||||
Transmission Agreement Phase-In
|
3,267
|
2,992
|
|||||||
Mountaineer Carbon Capture and Storage
|
|||||||||
Commercial Scale Facility
|
1,287
|
1,287
|
|||||||
Other Regulatory Assets Not Yet Being Recovered
|
3,652
|
1,447
|
|||||||
Total Regulatory Assets Not Yet Being Recovered
|
$
|
125,104
|
$
|
157,560
|
I&M
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
Noncurrent Regulatory Assets
|
(in thousands)
|
||||||||
Regulatory assets not yet being recovered pending future proceedings:
|
|||||||||
Regulatory Assets Currently Not Earning a Return
|
|||||||||
Litigation Settlement
|
$
|
-
|
$
|
11,098
|
|||||
Mountaineer Carbon Capture and Storage
|
|||||||||
Commercial Scale Facility
|
-
|
1,380
|
|||||||
Under-Recovered Capacity Costs
|
10,792
|
-
|
|||||||
Other Regulatory Asset Not Yet Being Recovered
|
2,634
|
786
|
|||||||
Total Regulatory Assets Not Yet Being Recovered
|
$
|
13,426
|
$
|
13,264
|
OPCo
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
Noncurrent Regulatory Assets
|
(in thousands)
|
||||||||
Regulatory assets not yet being recovered pending future proceedings:
|
|||||||||
Regulatory Assets Currently Earning a Return
|
|||||||||
Economic Development Rider
|
$
|
13,533
|
$
|
13,213
|
|||||
Regulatory Assets Currently Not Earning a Return
|
|||||||||
Storm Related Costs
|
58,512
|
61,828
|
|||||||
Ormet Delayed Payment Arrangement
|
20,000
|
5,453
|
|||||||
Other Regulatory Assets Not Yet Being Recovered
|
706
|
30
|
|||||||
Total Regulatory Assets Not Yet Being Recovered
|
$
|
92,751
|
$
|
80,524
|
PSO
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
Noncurrent Regulatory Assets
|
(in thousands)
|
||||||||
Regulatory assets not yet being recovered pending future proceedings:
|
|||||||||
Regulatory Assets Currently Not Earning a Return
|
|||||||||
Other Regulatory Assets Not Yet Being Recovered
|
$
|
803
|
$
|
423
|
|||||
Total Regulatory Assets Not Yet Being Recovered
|
$
|
803
|
$
|
423
|
SWEPCo
|
|||||||||
June 30,
|
December 31,
|
||||||||
2013
|
2012
|
||||||||
Noncurrent Regulatory Assets
|
(in thousands)
|
||||||||
Regulatory assets not yet being recovered pending future proceedings:
|
|||||||||
Regulatory Assets Currently Not Earning a Return
|
|||||||||
Rate Case Expenses
|
$
|
7,234
|
$
|
4,517
|
|||||
Mountaineer Carbon Capture and Storage
|
|||||||||
Commercial Scale Facility
|
2,295
|
2,295
|
|||||||
Other Regulatory Assets Not Yet Being Recovered
|
2,373
|
2,188
|
|||||||
Total Regulatory Assets Not Yet Being Recovered
|
$
|
11,902
|
$
|
9,000
|
2012 Texas Base Rate Case
|
Company
|
Amount
|
Maturity
|
|||
(in thousands)
|
|||||
I&M
|
$
|
150
|
March 2014
|
||
OPCo
|
3,081
|
June 2014
|
|||
SWEPCo
|
4,448
|
March 2014
|
Bilateral
|
Maturity of
|
|||||||
Pollution
|
Letters
|
Bilateral Letters
|
||||||
Company
|
Control Bonds
|
of Credit
|
of Credit
|
|||||
(in thousands)
|
||||||||
APCo
|
$
|
229,650
|
$
|
232,293
|
March 2014 to March 2015
|
|||
I&M
|
77,000
|
77,886
|
March 2015
|
|||||
OPCo
|
50,000
|
50,575
|
July 2014
|
Maximum
|
|||
Company
|
Potential Loss
|
||
(in thousands)
|
|||
APCo
|
$
|
3,639
|
|
I&M
|
2,495
|
||
OPCo
|
4,543
|
||
PSO
|
1,202
|
||
SWEPCo
|
2,442
|
The Comprehensive Environmental Response Compensation and Liability Act (Superfund) and State
Remediation – Affecting I&M
|
APCo
|
|||||||||||
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
1,542
|
$
|
1,891
|
$
|
642
|
$
|
1,347
|
|||
Interest Cost
|
6,915
|
7,553
|
3,364
|
4,615
|
|||||||
Expected Return on Plan Assets
|
(9,260)
|
(10,486)
|
(4,537)
|
(4,188)
|
|||||||
Amortization of Transition Obligation
|
-
|
-
|
-
|
200
|
|||||||
Amortization of Prior Service Cost (Credit)
|
50
|
119
|
(2,513)
|
(715)
|
|||||||
Amortization of Net Actuarial Loss
|
6,257
|
5,084
|
3,062
|
2,632
|
|||||||
Net Periodic Benefit Cost
|
$
|
5,504
|
$
|
4,161
|
$
|
18
|
$
|
3,891
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
3,085
|
$
|
3,782
|
$
|
1,283
|
$
|
2,694
|
|||
Interest Cost
|
13,831
|
15,106
|
6,727
|
9,231
|
|||||||
Expected Return on Plan Assets
|
(18,520)
|
(20,972)
|
(9,073)
|
(8,376)
|
|||||||
Amortization of Transition Obligation
|
-
|
-
|
-
|
400
|
|||||||
Amortization of Prior Service Cost (Credit)
|
99
|
238
|
(5,025)
|
(1,431)
|
|||||||
Amortization of Net Actuarial Loss
|
12,513
|
10,169
|
6,124
|
5,263
|
|||||||
Net Periodic Benefit Cost
|
$
|
11,008
|
$
|
8,323
|
$
|
36
|
$
|
7,781
|
I&M
|
|||||||||||
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
2,184
|
$
|
2,477
|
$
|
805
|
$
|
1,655
|
|||
Interest Cost
|
6,025
|
6,561
|
2,055
|
3,197
|
|||||||
Expected Return on Plan Assets
|
(8,206)
|
(9,392)
|
(3,296)
|
(3,212)
|
|||||||
Amortization of Transition Obligation
|
-
|
-
|
-
|
33
|
|||||||
Amortization of Prior Service Cost (Credit)
|
48
|
102
|
(2,355)
|
(596)
|
|||||||
Amortization of Net Actuarial Loss
|
5,422
|
4,393
|
1,881
|
1,763
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
5,473
|
$
|
4,141
|
$
|
(910)
|
$
|
2,840
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
4,368
|
$
|
4,954
|
$
|
1,610
|
$
|
3,310
|
|||
Interest Cost
|
12,050
|
13,122
|
4,110
|
6,393
|
|||||||
Expected Return on Plan Assets
|
(16,413)
|
(18,783)
|
(6,592)
|
(6,423)
|
|||||||
Amortization of Transition Obligation
|
-
|
-
|
-
|
66
|
|||||||
Amortization of Prior Service Cost (Credit)
|
97
|
204
|
(4,710)
|
(1,192)
|
|||||||
Amortization of Net Actuarial Loss
|
10,844
|
8,785
|
3,763
|
3,525
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
10,946
|
$
|
8,282
|
$
|
(1,819)
|
$
|
5,679
|
OPCo
|
|||||||||||
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
2,373
|
$
|
2,751
|
$
|
1,299
|
$
|
2,187
|
|||
Interest Cost
|
10,292
|
11,299
|
4,447
|
6,048
|
|||||||
Expected Return on Plan Assets
|
(15,142)
|
(17,101)
|
(6,239)
|
(5,639)
|
|||||||
Amortization of Transition Obligation
|
-
|
-
|
-
|
26
|
|||||||
Amortization of Prior Service Cost (Credit)
|
70
|
185
|
(3,230)
|
(968)
|
|||||||
Amortization of Net Actuarial Loss
|
9,309
|
7,610
|
4,041
|
3,417
|
|||||||
Net Periodic Benefit Cost
|
$
|
6,902
|
$
|
4,744
|
$
|
318
|
$
|
5,071
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
4,745
|
$
|
5,502
|
$
|
2,599
|
$
|
4,374
|
|||
Interest Cost
|
20,584
|
22,597
|
8,894
|
12,095
|
|||||||
Expected Return on Plan Assets
|
(30,283)
|
(34,201)
|
(12,477)
|
(11,278)
|
|||||||
Amortization of Transition Obligation
|
-
|
-
|
-
|
52
|
|||||||
Amortization of Prior Service Cost (Credit)
|
141
|
371
|
(6,461)
|
(1,936)
|
|||||||
Amortization of Net Actuarial Loss
|
18,618
|
15,220
|
8,082
|
6,834
|
|||||||
Net Periodic Benefit Cost
|
$
|
13,805
|
$
|
9,489
|
$
|
637
|
$
|
10,141
|
PSO
|
|||||||||||
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
1,390
|
$
|
1,488
|
$
|
343
|
$
|
709
|
|||
Interest Cost
|
2,749
|
3,075
|
948
|
1,450
|
|||||||
Expected Return on Plan Assets
|
(3,919)
|
(4,504)
|
(1,522)
|
(1,481)
|
|||||||
Amortization of Prior Service Cost (Credit)
|
74
|
(237)
|
(1,073)
|
(269)
|
|||||||
Amortization of Net Actuarial Loss
|
2,461
|
2,051
|
869
|
797
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
2,755
|
$
|
1,873
|
$
|
(435)
|
$
|
1,206
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
2,781
|
$
|
2,976
|
$
|
686
|
$
|
1,418
|
|||
Interest Cost
|
5,497
|
6,150
|
1,896
|
2,899
|
|||||||
Expected Return on Plan Assets
|
(7,837)
|
(9,008)
|
(3,044)
|
(2,961)
|
|||||||
Amortization of Prior Service Cost (Credit)
|
148
|
(474)
|
(2,145)
|
(539)
|
|||||||
Amortization of Net Actuarial Loss
|
4,922
|
4,103
|
1,738
|
1,594
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
5,511
|
$
|
3,747
|
$
|
(869)
|
$
|
2,411
|
SWEPCo
|
|||||||||||
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
1,753
|
$
|
1,774
|
$
|
423
|
$
|
831
|
|||
Interest Cost
|
2,863
|
3,135
|
1,076
|
1,668
|
|||||||
Expected Return on Plan Assets
|
(4,128)
|
(4,716)
|
(1,720)
|
(1,698)
|
|||||||
Amortization of Prior Service Cost (Credit)
|
88
|
(199)
|
(1,290)
|
(233)
|
|||||||
Amortization of Net Actuarial Loss
|
2,554
|
2,082
|
982
|
914
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
3,130
|
$
|
2,076
|
$
|
(529)
|
$
|
1,482
|
Other Postretirement
|
|||||||||||
Pension Plans
|
Benefit Plans
|
||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
|||||||||||
Service Cost
|
$
|
3,506
|
$
|
3,549
|
$
|
846
|
$
|
1,662
|
|||
Interest Cost
|
5,727
|
6,269
|
2,151
|
3,336
|
|||||||
Expected Return on Plan Assets
|
(8,255)
|
(9,433)
|
(3,440)
|
(3,397)
|
|||||||
Amortization of Prior Service Cost (Credit)
|
175
|
(397)
|
(2,578)
|
(466)
|
|||||||
Amortization of Net Actuarial Loss
|
5,107
|
4,165
|
1,964
|
1,829
|
|||||||
Net Periodic Benefit Cost (Credit)
|
$
|
6,260
|
$
|
4,153
|
$
|
(1,057)
|
$
|
2,964
|
Notional Volume of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Primary Risk
|
Unit of
|
||||||||||||||||||
Exposure
|
Measure
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Commodity:
|
|||||||||||||||||||
Power
|
MWhs
|
99,667
|
68,875
|
140,924
|
9
|
10
|
|||||||||||||
Coal
|
Tons
|
502
|
1,607
|
1,372
|
946
|
795
|
|||||||||||||
Natural Gas
|
MMBtus
|
6,120
|
4,230
|
8,654
|
-
|
-
|
|||||||||||||
Heating Oil and
|
|||||||||||||||||||
Gasoline
|
Gallons
|
883
|
435
|
1,039
|
442
|
543
|
|||||||||||||
Interest Rate
|
USD
|
$
|
18,121
|
$
|
12,523
|
$
|
25,622
|
$
|
-
|
$
|
-
|
||||||||
Interest Rate and
|
|||||||||||||||||||
Foreign Currency
|
USD
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Notional Volume of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Primary Risk
|
Unit of
|
||||||||||||||||||
Exposure
|
Measure
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Commodity:
|
|||||||||||||||||||
Power
|
MWhs
|
94,059
|
64,791
|
132,188
|
-
|
-
|
|||||||||||||
Coal
|
Tons
|
1,401
|
2,711
|
3,033
|
1,980
|
1,312
|
|||||||||||||
Natural Gas
|
MMBtus
|
10,077
|
6,922
|
14,163
|
-
|
-
|
|||||||||||||
Heating Oil and
|
|||||||||||||||||||
Gasoline
|
Gallons
|
1,050
|
532
|
1,260
|
616
|
585
|
|||||||||||||
Interest Rate
|
USD
|
$
|
24,146
|
$
|
16,584
|
$
|
33,934
|
$
|
-
|
$
|
-
|
||||||||
Interest Rate and
|
|||||||||||||||||||
Foreign Currency
|
USD
|
$
|
-
|
$
|
200,000
|
$
|
-
|
$
|
-
|
$
|
-
|
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND THE IMPACT ON THE FINANCIAL STATEMENTS
|
June 30, 2013
|
December 31, 2012
|
||||||||||||
Cash Collateral
|
Cash Collateral
|
Cash Collateral
|
Cash Collateral
|
||||||||||
Received
|
Paid
|
Received
|
Paid
|
||||||||||
Netted Against
|
Netted Against
|
Netted Against
|
Netted Against
|
||||||||||
Risk Management
|
Risk Management
|
Risk Management
|
Risk Management
|
||||||||||
Company
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||||
(in thousands)
|
|||||||||||||
APCo
|
$
|
555
|
$
|
5,021
|
$
|
1,262
|
$
|
11,029
|
|||||
I&M
|
383
|
3,455
|
867
|
7,576
|
|||||||||
OPCo
|
784
|
7,081
|
1,774
|
15,500
|
|||||||||
PSO
|
-
|
35
|
-
|
-
|
|||||||||
SWEPCo
|
-
|
44
|
-
|
-
|
APCo
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
86,770
|
$
|
995
|
$
|
-
|
$
|
87,765
|
$
|
(59,245)
|
$
|
28,520
|
|||||||
Long-term Risk Management Assets
|
38,563
|
-
|
-
|
38,563
|
(14,955)
|
23,608
|
|||||||||||||
Total Assets
|
125,333
|
995
|
-
|
126,328
|
(74,200)
|
52,128
|
|||||||||||||
Current Risk Management Liabilities
|
75,377
|
679
|
-
|
76,056
|
(62,659)
|
13,397
|
|||||||||||||
Long-term Risk Management Liabilities
|
29,990
|
24
|
-
|
30,014
|
(16,007)
|
14,007
|
|||||||||||||
Total Liabilities
|
105,367
|
703
|
-
|
106,070
|
(78,666)
|
27,404
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
19,966
|
$
|
292
|
$
|
-
|
$
|
20,258
|
$
|
4,466
|
$
|
24,724
|
|||||||
APCo
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
127,645
|
$
|
338
|
$
|
-
|
$
|
127,983
|
$
|
(97,023)
|
$
|
30,960
|
|||||||
Long-term Risk Management Assets
|
60,498
|
215
|
-
|
60,713
|
(26,353)
|
34,360
|
|||||||||||||
Total Assets
|
188,143
|
553
|
-
|
188,696
|
(123,376)
|
65,320
|
|||||||||||||
Current Risk Management Liabilities
|
119,430
|
1,182
|
-
|
120,612
|
(103,914)
|
16,698
|
|||||||||||||
Long-term Risk Management Liabilities
|
47,281
|
424
|
-
|
47,705
|
(29,229)
|
18,476
|
|||||||||||||
Total Liabilities
|
166,711
|
1,606
|
-
|
168,317
|
(133,143)
|
35,174
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
21,432
|
$
|
(1,053)
|
$
|
-
|
$
|
20,379
|
$
|
9,767
|
$
|
30,146
|
I&M
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
59,657
|
$
|
686
|
$
|
-
|
$
|
60,343
|
$
|
(40,744)
|
$
|
19,599
|
|||||||
Long-term Risk Management Assets
|
26,650
|
-
|
-
|
26,650
|
(10,335)
|
16,315
|
|||||||||||||
Total Assets
|
86,307
|
686
|
-
|
86,993
|
(51,079)
|
35,914
|
|||||||||||||
Current Risk Management Liabilities
|
52,025
|
455
|
-
|
52,480
|
(43,093)
|
9,387
|
|||||||||||||
Long-term Risk Management Liabilities
|
21,066
|
12
|
-
|
21,078
|
(11,058)
|
10,020
|
|||||||||||||
Total Liabilities
|
73,091
|
467
|
-
|
73,558
|
(54,151)
|
19,407
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
13,216
|
$
|
219
|
$
|
-
|
$
|
13,435
|
$
|
3,072
|
$
|
16,507
|
|||||||
I&M
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
93,268
|
$
|
220
|
$
|
-
|
$
|
93,488
|
$
|
(66,514)
|
$
|
26,974
|
|||||||
Long-term Risk Management Assets
|
41,553
|
148
|
-
|
41,701
|
(18,132)
|
23,569
|
|||||||||||||
Total Assets
|
134,821
|
368
|
-
|
135,189
|
(84,646)
|
50,543
|
|||||||||||||
Current Risk Management Liabilities
|
82,433
|
807
|
19,524
|
102,764
|
(71,247)
|
31,517
|
|||||||||||||
Long-term Risk Management Liabilities
|
33,714
|
292
|
-
|
34,006
|
(20,108)
|
13,898
|
|||||||||||||
Total Liabilities
|
116,147
|
1,099
|
19,524
|
136,770
|
(91,355)
|
45,415
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
18,674
|
$
|
(731)
|
$
|
(19,524)
|
$
|
(1,581)
|
$
|
6,709
|
$
|
5,128
|
OPCo
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
126,809
|
$
|
1,406
|
$
|
-
|
$
|
128,215
|
$
|
(87,070)
|
$
|
41,145
|
|||||||
Long-term Risk Management Assets
|
54,528
|
-
|
-
|
54,528
|
(21,147)
|
33,381
|
|||||||||||||
Total Assets
|
181,337
|
1,406
|
-
|
182,743
|
(108,217)
|
74,526
|
|||||||||||||
Current Risk Management Liabilities
|
110,711
|
943
|
-
|
111,654
|
(91,885)
|
19,769
|
|||||||||||||
Long-term Risk Management Liabilities
|
42,403
|
29
|
-
|
42,432
|
(22,629)
|
19,803
|
|||||||||||||
Total Liabilities
|
153,114
|
972
|
-
|
154,086
|
(114,514)
|
39,572
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
28,223
|
$
|
434
|
$
|
-
|
$
|
28,657
|
$
|
6,297
|
$
|
34,954
|
|||||||
OPCo
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
183,064
|
$
|
464
|
$
|
-
|
$
|
183,528
|
$
|
(139,215)
|
$
|
44,313
|
|||||||
Long-term Risk Management Assets
|
85,023
|
303
|
-
|
85,326
|
(37,038)
|
48,288
|
|||||||||||||
Total Assets
|
268,087
|
767
|
-
|
268,854
|
(176,253)
|
92,601
|
|||||||||||||
Current Risk Management Liabilities
|
171,397
|
1,658
|
-
|
173,055
|
(148,900)
|
24,155
|
|||||||||||||
Long-term Risk Management Liabilities
|
66,448
|
596
|
-
|
67,044
|
(41,079)
|
25,965
|
|||||||||||||
Total Liabilities
|
237,845
|
2,254
|
-
|
240,099
|
(189,979)
|
50,120
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
30,242
|
$
|
(1,487)
|
$
|
-
|
$
|
28,755
|
$
|
13,726
|
$
|
42,481
|
PSO
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
1,289
|
$
|
6
|
$
|
-
|
$
|
1,295
|
$
|
(811)
|
$
|
484
|
|||||||
Long-term Risk Management Assets
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total Assets
|
1,289
|
6
|
-
|
1,295
|
(811)
|
484
|
|||||||||||||
Current Risk Management Liabilities
|
2,910
|
37
|
-
|
2,947
|
(836)
|
2,111
|
|||||||||||||
Long-term Risk Management Liabilities
|
-
|
12
|
-
|
12
|
(10)
|
2
|
|||||||||||||
Total Liabilities
|
2,910
|
49
|
-
|
2,959
|
(846)
|
2,113
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
(1,621)
|
$
|
(43)
|
$
|
-
|
$
|
(1,664)
|
$
|
35
|
$
|
(1,629)
|
|||||||
PSO
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
1,657
|
$
|
42
|
$
|
-
|
$
|
1,699
|
$
|
(1,190)
|
$
|
509
|
|||||||
Long-term Risk Management Assets
|
-
|
-
|
-
|
-
|
31
|
31
|
|||||||||||||
Total Assets
|
1,657
|
42
|
-
|
1,699
|
(1,159)
|
540
|
|||||||||||||
Current Risk Management Liabilities
|
7,021
|
17
|
-
|
7,038
|
(1,190)
|
5,848
|
|||||||||||||
Long-term Risk Management Liabilities
|
-
|
-
|
-
|
-
|
31
|
31
|
|||||||||||||
Total Liabilities
|
7,021
|
17
|
-
|
7,038
|
(1,159)
|
5,879
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
(5,364)
|
$
|
25
|
$
|
-
|
$
|
(5,339)
|
$
|
-
|
$
|
(5,339)
|
SWEPCo
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
June 30, 2013
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
1,846
|
$
|
6
|
$
|
-
|
$
|
1,852
|
$
|
(1,454)
|
$
|
398
|
|||||||
Long-term Risk Management Assets
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total Assets
|
1,846
|
6
|
-
|
1,852
|
(1,454)
|
398
|
|||||||||||||
Current Risk Management Liabilities
|
2,382
|
45
|
-
|
2,427
|
(1,486)
|
941
|
|||||||||||||
Long-term Risk Management Liabilities
|
-
|
15
|
-
|
15
|
(12)
|
3
|
|||||||||||||
Total Liabilities
|
2,382
|
60
|
-
|
2,442
|
(1,498)
|
944
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
(536)
|
$
|
(54)
|
$
|
-
|
$
|
(590)
|
$
|
44
|
$
|
(546)
|
|||||||
SWEPCo
|
|||||||||||||||||||
Fair Value of Derivative Instruments
|
|||||||||||||||||||
December 31, 2012
|
|||||||||||||||||||
Risk
|
Gross Amounts
|
Gross
|
Net Amounts of
|
||||||||||||||||
Management
|
of Risk
|
Amounts
|
Assets/Liabilities
|
||||||||||||||||
Contracts
|
Hedging Contracts
|
Management
|
Offset in the
|
Presented in the
|
|||||||||||||||
Interest Rate
|
Assets/
|
Statement of
|
Statement of
|
||||||||||||||||
and Foreign
|
Liabilities
|
Financial
|
Financial
|
||||||||||||||||
Balance Sheet Location
|
Commodity (a)
|
Commodity (a)
|
Currency (a)
|
Recognized
|
Position (b)
|
Position (c)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
Current Risk Management Assets
|
$
|
2,804
|
$
|
41
|
$
|
-
|
$
|
2,845
|
$
|
(2,150)
|
$
|
695
|
|||||||
Long-term Risk Management Assets
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total Assets
|
2,804
|
41
|
-
|
2,845
|
(2,150)
|
695
|
|||||||||||||
Current Risk Management Liabilities
|
3,261
|
17
|
-
|
3,278
|
(2,150)
|
1,128
|
|||||||||||||
Long-term Risk Management Liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total Liabilities
|
3,261
|
17
|
-
|
3,278
|
(2,150)
|
1,128
|
|||||||||||||
Total MTM Derivative Contract Net
|
|||||||||||||||||||
Assets (Liabilities)
|
$
|
(457)
|
$
|
24
|
$
|
-
|
$
|
(433)
|
$
|
-
|
$
|
(433)
|
Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the condensed balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."
|
(b)
|
Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."
|
(c)
|
There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.
|
Amount of Gain (Loss) Recognized on
|
||||||||||||||||||
Risk Management Contracts
|
||||||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Electric Generation, Transmission and
|
||||||||||||||||||
Distribution Revenues
|
$
|
194
|
$
|
2,897
|
$
|
1,819
|
$
|
169
|
$
|
302
|
||||||||
Sales to AEP Affiliates
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Fuel and Other Consumables Used for
|
||||||||||||||||||
Electric Generation
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Regulatory Assets (a)
|
(974)
|
(1,585)
|
(4,492)
|
192
|
(373)
|
|||||||||||||
Regulatory Liabilities (a)
|
1,230
|
(880)
|
3,360
|
(1)
|
39
|
|||||||||||||
Total Gain (Loss) on Risk Management
|
||||||||||||||||||
Contracts
|
$
|
450
|
$
|
432
|
$
|
687
|
$
|
360
|
$
|
(32)
|
||||||||
Amount of Gain (Loss) Recognized on
|
||||||||||||||||||
Risk Management Contracts
|
||||||||||||||||||
For the Three Months Ended June 30, 2012
|
||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Electric Generation, Transmission and
|
||||||||||||||||||
Distribution Revenues
|
$
|
(599)
|
$
|
2,579
|
$
|
2,538
|
$
|
165
|
$
|
303
|
||||||||
Sales to AEP Affiliates
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Fuel and Other Consumables Used for
|
||||||||||||||||||
Electric Generation
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Regulatory Assets (a)
|
(3,796)
|
(2,905)
|
(8,895)
|
(757)
|
(364)
|
|||||||||||||
Regulatory Liabilities (a)
|
4,711
|
392
|
7,178
|
(26)
|
(27)
|
|||||||||||||
Total Gain (Loss) on Risk Management
|
||||||||||||||||||
Contracts
|
$
|
316
|
$
|
66
|
$
|
821
|
$
|
(618)
|
$
|
(88)
|
Amount of Gain (Loss) Recognized on
|
||||||||||||||||||
Risk Management Contracts
|
||||||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Electric Generation, Transmission and
|
||||||||||||||||||
Distribution Revenues
|
$
|
873
|
$
|
7,844
|
$
|
3,533
|
$
|
216
|
$
|
330
|
||||||||
Sales to AEP Affiliates
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Fuel and Other Consumables Used for
|
||||||||||||||||||
Electric Generation
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Regulatory Assets (a)
|
-
|
(1,099)
|
(5,697)
|
2,202
|
(102)
|
|||||||||||||
Regulatory Liabilities (a)
|
(210)
|
(6,062)
|
3,360
|
-
|
135
|
|||||||||||||
Total Gain (Loss) on Risk Management
|
||||||||||||||||||
Contracts
|
$
|
663
|
$
|
683
|
$
|
1,196
|
$
|
2,418
|
$
|
363
|
||||||||
Amount of Gain (Loss) Recognized on
|
||||||||||||||||||
Risk Management Contracts
|
||||||||||||||||||
For the Six Months Ended June 30, 2012
|
||||||||||||||||||
Location of Gain (Loss)
|
APCo
|
I&M
|
OPCo
|
PSO
|
SWEPCo
|
|||||||||||||
(in thousands)
|
||||||||||||||||||
Electric Generation, Transmission and
|
||||||||||||||||||
Distribution Revenues
|
$
|
(926)
|
$
|
5,392
|
$
|
11,031
|
$
|
160
|
$
|
252
|
||||||||
Sales to AEP Affiliates
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Fuel and Other Consumables Used for
|
||||||||||||||||||
Electric Generation
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Regulatory Assets (a)
|
(7,277)
|
(6,015)
|
(12,026)
|
(5,958)
|
(7,092)
|
|||||||||||||
Regulatory Liabilities (a)
|
11,120
|
7,118
|
7,178
|
1
|
(5)
|
|||||||||||||
Total Gain (Loss) on Risk Management
|
||||||||||||||||||
Contracts
|
$
|
2,917
|
$
|
6,495
|
$
|
6,183
|
$
|
(5,797)
|
$
|
(6,845)
|
||||||||
(a) Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current
|
||||||||||||||||||
or noncurrent on the condensed balance sheets.
|
Impact of Cash Flow Hedges on the Registrant Subsidiaries’
|
||||||||||||||||||||
Condensed Balance Sheets
|
||||||||||||||||||||
June 30, 2013
|
||||||||||||||||||||
Hedging Assets (a)
|
Hedging Liabilities (a)
|
AOCI Gain (Loss) Net of Tax
|
||||||||||||||||||
Interest Rate
|
Interest Rate
|
Interest Rate
|
||||||||||||||||||
and Foreign
|
and Foreign
|
and Foreign
|
||||||||||||||||||
Company
|
Commodity
|
Currency
|
Commodity
|
Currency
|
Commodity
|
Currency
|
||||||||||||||
(in thousands)
|
||||||||||||||||||||
APCo
|
$
|
570
|
$
|
-
|
$
|
278
|
$
|
-
|
$
|
197
|
$
|
2,583
|
||||||||
I&M
|
393
|
-
|
174
|
-
|
147
|
(16,796)
|
||||||||||||||
OPCo
|
805
|
-
|
371
|
-
|
289
|
7,415
|
||||||||||||||
PSO
|
2
|
-
|
45
|
-
|
(21)
|
6,081
|
||||||||||||||
SWEPCo
|
2
|
-
|
56
|
-
|
(26)
|
(14,437)
|
Expected to be Reclassified to
|
||||||||||
Net Income During the Next
|
||||||||||
Twelve Months
|
||||||||||
Maximum Term for
|
||||||||||
Interest Rate
|
Exposure to
|
|||||||||
and Foreign
|
Variability of Future
|
|||||||||
Company
|
Commodity
|
Currency
|
Cash Flows
|
|||||||
(in thousands)
|
(in months)
|
|||||||||
APCo
|
$
|
213
|
$
|
(1,013)
|
18
|
|||||
I&M
|
153
|
(1,640)
|
18
|
|||||||
OPCo
|
308
|
1,359
|
18
|
|||||||
PSO
|
(13)
|
759
|
18
|
|||||||
SWEPCo
|
(17)
|
(2,267)
|
18
|
Impact of Cash Flow Hedges on the Registrant Subsidiaries’
|
||||||||||||||||||||
Condensed Balance Sheets
|
||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Hedging Assets (a)
|
Hedging Liabilities (a)
|
AOCI Gain (Loss) Net of Tax
|
||||||||||||||||||
Interest Rate
|
Interest Rate
|
Interest Rate
|
||||||||||||||||||
and Foreign
|
and Foreign
|
and Foreign
|
||||||||||||||||||
Company
|
Commodity
|
Currency
|
Commodity
|
Currency
|
Commodity
|
Currency
|
||||||||||||||
(in thousands)
|
||||||||||||||||||||
APCo
|
$
|
302
|
$
|
-
|
$
|
1,355
|
$
|
-
|
$
|
(644)
|
$
|
2,077
|
||||||||
I&M
|
200
|
-
|
931
|
19,524
|
(446)
|
(19,647)
|
||||||||||||||
OPCo
|
416
|
-
|
1,903
|
-
|
(912)
|
8,095
|
||||||||||||||
PSO
|
25
|
-
|
-
|
-
|
21
|
6,460
|
||||||||||||||
SWEPCo
|
24
|
-
|
-
|
-
|
22
|
(15,571)
|
Expected to be Reclassified to
|
||||||||
Net Income During the Next
|
||||||||
Twelve Months
|
||||||||
Interest Rate
|
||||||||
and Foreign
|
||||||||
Company
|
Commodity
|
Currency
|
||||||
(in thousands)
|
||||||||
APCo
|
$
|
(507)
|
$
|
(1,013)
|
||||
I&M
|
(355)
|
(1,600)
|
||||||
OPCo
|
(720)
|
1,359
|
||||||
PSO
|
21
|
759
|
||||||
SWEPCo
|
22
|
(2,267)
|
|
(a)
|
Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the condensed balance sheets.
|
June 30, 2013
|
|||||||||||
Liabilities for
|
Amount of Collateral the
|
Amount
|
|||||||||
Derivative Contracts
|
Registrant Subsidiaries
|
Attributable to
|
|||||||||
with Credit
|
Would Have Been
|
RTO and ISO
|
|||||||||
Company
|
Downgrade Triggers
|
Required to Post
|
Activities
|
||||||||
(in thousands)
|
|||||||||||
APCo
|
$
|
937
|
$
|
6,147
|
$
|
6,074
|
|||||
I&M
|
647
|
4,248
|
4,197
|
||||||||
OPCo
|
1,324
|
8,692
|
8,588
|
||||||||
PSO
|
-
|
1,533
|
1,306
|
||||||||
SWEPCo
|
-
|
1,810
|
1,542
|
December 31, 2012
|
|||||||||||
Liabilities for
|
Amount of Collateral the
|
Amount
|
|||||||||
Derivative Contracts
|
Registrant Subsidiaries
|
Attributable to
|
|||||||||
with Credit
|
Would Have Been
|
RTO and ISO
|
|||||||||
Company
|
Downgrade Triggers
|
Required to Post
|
Activities
|
||||||||
(in thousands)
|
|||||||||||
APCo
|
$
|
2,159
|
$
|
3,699
|
$
|
3,510
|
|||||
I&M
|
1,483
|
2,540
|
2,411
|
||||||||
OPCo
|
3,034
|
5,198
|
4,933
|
||||||||
PSO
|
-
|
1,509
|
1,429
|
||||||||
SWEPCo
|
-
|
1,778
|
1,683
|
June 30, 2013
|
||||||||||
Liabilities for
|
Additional
|
|||||||||
Contracts with Cross
|
Settlement
|
|||||||||
Default Provisions
|
Liability if Cross
|
|||||||||
Prior to Contractual
|
Amount of Cash
|
Default Provision
|
||||||||
Company
|
Netting Arrangements
|
Collateral Posted
|
is Triggered
|
|||||||
(in thousands)
|
||||||||||
APCo
|
$
|
31,949
|
$
|
-
|
$
|
24,748
|
||||
I&M
|
22,079
|
-
|
17,102
|
|||||||
OPCo
|
45,175
|
-
|
34,993
|
|||||||
PSO
|
15
|
-
|
14
|
|||||||
SWEPCo
|
18
|
-
|
17
|
|||||||
December 31, 2012
|
||||||||||
Liabilities for
|
Additional
|
|||||||||
Contracts with Cross
|
Settlement
|
|||||||||
Default Provisions
|
Liability if Cross
|
|||||||||
Prior to Contractual
|
Amount of Cash
|
Default Provision
|
||||||||
Company
|
Netting Arrangements
|
Collateral Posted
|
is Triggered
|
|||||||
(in thousands)
|
||||||||||
APCo
|
$
|
49,465
|
$
|
1,822
|
$
|
30,160
|
||||
I&M
|
53,499
|
1,252
|
40,240
|
|||||||
OPCo
|
69,516
|
2,561
|
42,386
|
|||||||
PSO
|
-
|
-
|
-
|
|||||||
SWEPCo
|
-
|
-
|
-
|
June 30, 2013
|
December 31, 2012
|
|||||||||||
Company
|
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
||||||||
(in thousands)
|
||||||||||||
APCo
|
$
|
3,702,759
|
$
|
4,241,900
|
$
|
3,702,442
|
$
|
4,555,143
|
||||
I&M
|
2,305,192
|
2,490,561
|
2,057,666
|
2,372,017
|
||||||||
OPCo
|
3,504,794
|
4,002,270
|
3,860,440
|
4,560,337
|
||||||||
PSO
|
949,841
|
1,107,094
|
949,871
|
1,175,759
|
||||||||
SWEPCo
|
2,044,780
|
2,231,426
|
2,046,228
|
2,400,509
|
·
|
Acceptable investments (rated investment grade or above when purchased).
|
·
|
Maximum percentage invested in a specific type of investment.
|
·
|
Prohibition of investment in obligations of AEP or its affiliates.
|
·
|
Withdrawals permitted only for payment of decommissioning costs and trust expenses.
|
June 30, 2013
|
December 31, 2012
|
|||||||||||||||||||
Estimated
|
Gross
|
Other-Than-
|
Estimated
|
Gross
|
Other-Than-
|
|||||||||||||||
Fair
|
Unrealized
|
Temporary
|
Fair
|
Unrealized
|
Temporary
|
|||||||||||||||
Value
|
Gains (Losses)
|
Impairments
|
Value
|
Gains
|
Impairments
|
|||||||||||||||
(in thousands)
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
14,132
|
$
|
-
|
$
|
-
|
$
|
16,783
|
$
|
-
|
$
|
-
|
||||||||
Fixed Income Securities:
|
||||||||||||||||||||
United States Government
|
604,850
|
37,609
|
(2,085)
|
647,918
|
58,268
|
(747)
|
||||||||||||||
Corporate Debt
|
35,202
|
2,963
|
(1,592)
|
35,399
|
4,903
|
(1,352)
|
||||||||||||||
State and Local Government
|
262,521
|
(1,661)
|
(2,832)
|
270,090
|
1,006
|
(863)
|
||||||||||||||
Subtotal Fixed Income Securities
|
902,573
|
38,911
|
(6,509)
|
953,407
|
64,177
|
(2,962)
|
||||||||||||||
Equity Securities - Domestic
|
874,689
|
372,591
|
(82,148)
|
735,582
|
284,599
|
(76,557)
|
||||||||||||||
Spent Nuclear Fuel and
|
||||||||||||||||||||
Decommissioning Trusts
|
$
|
1,791,394
|
$
|
411,502
|
$
|
(88,657)
|
$
|
1,705,772
|
$
|
348,776
|
$
|
(79,519)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
(in thousands)
|
||||||||||||
Proceeds from Investment Sales
|
$
|
218,272
|
$
|
182,179
|
$
|
385,942
|
$
|
516,579
|
||||
Purchases of Investments
|
227,470
|
192,104
|
411,769
|
544,981
|
||||||||
Gross Realized Gains on Investment Sales
|
8,575
|
3,380
|
11,898
|
4,932
|
||||||||
Gross Realized Losses on Investment Sales
|
7,397
|
803
|
9,712
|
2,219
|
Fair Value of
|
||
Fixed Income
|
||
Securities
|
||
(in thousands)
|
||
Within 1 year
|
$
|
78,832
|
1 year – 5 years
|
340,397
|
|
5 years – 10 years
|
238,064
|
|
After 10 years
|
245,280
|
|
Total
|
$
|
902,573
|
APCo
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
June 30, 2013
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
2,555
|
$
|
107,096
|
$
|
15,526
|
$
|
(73,619)
|
$
|
51,558
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
995
|
-
|
(425)
|
570
|
||||||||||
Total Risk Management Assets
|
$
|
2,555
|
$
|
108,091
|
$
|
15,526
|
$
|
(74,044)
|
$
|
52,128
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
1,477
|
$
|
101,183
|
$
|
2,550
|
$
|
(78,084)
|
$
|
27,126
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
703
|
-
|
(425)
|
278
|
||||||||||
Total Risk Management Liabilities
|
$
|
1,477
|
$
|
101,886
|
$
|
2,550
|
$
|
(78,509)
|
$
|
27,404
|
APCo
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
December 31, 2012
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
4,161
|
$
|
166,916
|
$
|
17,058
|
$
|
(123,117)
|
$
|
65,018
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
498
|
-
|
(196)
|
302
|
||||||||||
Total Risk Management Assets
|
$
|
4,161
|
$
|
167,414
|
$
|
17,058
|
$
|
(123,313)
|
$
|
65,320
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
1,959
|
$
|
158,665
|
$
|
6,079
|
$
|
(132,884)
|
$
|
33,819
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
1,551
|
-
|
(196)
|
1,355
|
||||||||||
Total Risk Management Liabilities
|
$
|
1,959
|
$
|
160,216
|
$
|
6,079
|
$
|
(133,080)
|
$
|
35,174
|
I&M
|
||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
June 30, 2013
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||
Risk Management Assets
|
||||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
1,766
|
$
|
73,702
|
$
|
10,729
|
$
|
(50,676)
|
$
|
35,521
|
||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (a)
|
-
|
686
|
-
|
(293)
|
393
|
|||||||||||
Total Risk Management Assets
|
1,766
|
74,388
|
10,729
|
(50,969)
|
35,914
|
|||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||
Cash and Cash Equivalents (c)
|
2,939
|
-
|
-
|
11,193
|
14,132
|
|||||||||||
Fixed Income Securities:
|
||||||||||||||||
United States Government
|
-
|
604,850
|
-
|
-
|
604,850
|
|||||||||||
Corporate Debt
|
-
|
35,202
|
-
|
-
|
35,202
|
|||||||||||
State and Local Government
|
-
|
262,521
|
-
|
-
|
262,521
|
|||||||||||
Subtotal Fixed Income Securities
|
-
|
902,573
|
-
|
-
|
902,573
|
|||||||||||
Equity Securities - Domestic (d)
|
874,689
|
-
|
-
|
-
|
874,689
|
|||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
877,628
|
902,573
|
-
|
11,193
|
1,791,394
|
|||||||||||
Total Assets
|
$
|
879,394
|
$
|
976,961
|
$
|
10,729
|
$
|
(39,776)
|
$
|
1,827,308
|
||||||
Liabilities:
|
||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
1,021
|
$
|
70,200
|
$
|
1,762
|
$
|
(53,750)
|
$
|
19,233
|
||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (a)
|
-
|
467
|
-
|
(293)
|
174
|
|||||||||||
Total Risk Management Liabilities
|
$
|
1,021
|
$
|
70,667
|
$
|
1,762
|
$
|
(54,043)
|
$
|
19,407
|
I&M
|
||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
||||||||||||
Assets:
|
(in thousands)
|
|||||||||||||||
Risk Management Assets
|
||||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
2,858
|
$
|
120,242
|
$
|
11,717
|
$
|
(84,474)
|
$
|
50,343
|
||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (a)
|
-
|
330
|
-
|
(130)
|
200
|
|||||||||||
Total Risk Management Assets
|
2,858
|
120,572
|
11,717
|
(84,604)
|
50,543
|
|||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
||||||||||||||||
Cash and Cash Equivalents (c)
|
6,508
|
-
|
-
|
10,275
|
16,783
|
|||||||||||
Fixed Income Securities:
|
||||||||||||||||
United States Government
|
-
|
647,918
|
-
|
-
|
647,918
|
|||||||||||
Corporate Debt
|
-
|
35,399
|
-
|
-
|
35,399
|
|||||||||||
State and Local Government
|
-
|
270,090
|
-
|
-
|
270,090
|
|||||||||||
Subtotal Fixed Income Securities
|
-
|
953,407
|
-
|
-
|
953,407
|
|||||||||||
Equity Securities - Domestic (d)
|
735,582
|
-
|
-
|
-
|
735,582
|
|||||||||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
742,090
|
953,407
|
-
|
10,275
|
1,705,772
|
|||||||||||
Total Assets
|
$
|
744,948
|
$
|
1,073,979
|
$
|
11,717
|
$
|
(74,329)
|
$
|
1,756,315
|
||||||
Liabilities:
|
||||||||||||||||
Risk Management Liabilities
|
||||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
1,346
|
$
|
110,621
|
$
|
4,176
|
$
|
(91,183)
|
$
|
24,960
|
||||||
Cash Flow Hedges:
|
||||||||||||||||
Commodity Hedges (a)
|
-
|
1,061
|
-
|
(130)
|
931
|
|||||||||||
Interest Rate/Foreign Currency Hedges
|
-
|
19,524
|
-
|
-
|
19,524
|
|||||||||||
Total Risk Management Liabilities
|
$
|
1,346
|
$
|
131,206
|
$
|
4,176
|
$
|
(91,313)
|
$
|
45,415
|
OPCo
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
June 30, 2013
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Other Cash Deposits (e)
|
$
|
-
|
$
|
26
|
$
|
-
|
$
|
39
|
$
|
65
|
|||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
3,613
|
155,550
|
21,953
|
(107,395)
|
73,721
|
||||||||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
1,405
|
-
|
(600)
|
805
|
||||||||||
Total Risk Management Assets
|
3,613
|
156,955
|
21,953
|
(107,995)
|
74,526
|
||||||||||
Total Assets
|
$
|
3,613
|
$
|
156,981
|
$
|
21,953
|
$
|
(107,956)
|
$
|
74,591
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
2,088
|
$
|
147,199
|
$
|
3,606
|
$
|
(113,692)
|
$
|
39,201
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
971
|
-
|
(600)
|
371
|
||||||||||
Total Risk Management Liabilities
|
$
|
2,088
|
$
|
148,170
|
$
|
3,606
|
$
|
(114,292)
|
$
|
39,572
|
OPCo
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
December 31, 2012
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Other Cash Deposits (e)
|
$
|
-
|
$
|
26
|
$
|
-
|
$
|
39
|
$
|
65
|
|||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
5,848
|
238,254
|
23,973
|
(175,890)
|
92,185
|
||||||||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
688
|
-
|
(272)
|
416
|
||||||||||
Total Risk Management Assets
|
5,848
|
238,942
|
23,973
|
(176,162)
|
92,601
|
||||||||||
Total Assets
|
$
|
5,848
|
$
|
238,968
|
$
|
23,973
|
$
|
(176,123)
|
$
|
92,666
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
2,753
|
$
|
226,536
|
$
|
8,544
|
$
|
(189,616)
|
$
|
48,217
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
2,175
|
-
|
(272)
|
1,903
|
||||||||||
Total Risk Management Liabilities
|
$
|
2,753
|
$
|
228,711
|
$
|
8,544
|
$
|
(189,888)
|
$
|
50,120
|
PSO
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
June 30, 2013
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
1,289
|
$
|
-
|
$
|
(807)
|
$
|
482
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
6
|
-
|
(4)
|
2
|
||||||||||
Total Risk Management Assets
|
$
|
-
|
$
|
1,295
|
$
|
-
|
$
|
(811)
|
$
|
484
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
2,910
|
$
|
-
|
$
|
(842)
|
$
|
2,068
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
49
|
-
|
(4)
|
45
|
||||||||||
Total Risk Management Liabilities
|
$
|
-
|
$
|
2,959
|
$
|
-
|
$
|
(846)
|
$
|
2,113
|
PSO
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
December 31, 2012
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
1,657
|
$
|
-
|
$
|
(1,142)
|
$
|
515
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
42
|
-
|
(17)
|
25
|
||||||||||
Total Risk Management Assets
|
$
|
-
|
$
|
1,699
|
$
|
-
|
$
|
(1,159)
|
$
|
540
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
7,021
|
$
|
-
|
$
|
(1,142)
|
$
|
5,879
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
17
|
-
|
(17)
|
-
|
||||||||||
Total Risk Management Liabilities
|
$
|
-
|
$
|
7,038
|
$
|
-
|
$
|
(1,159)
|
$
|
5,879
|
SWEPCo
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
June 30, 2013
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Cash and Cash Equivalents (e)
|
$
|
10,078
|
$
|
-
|
$
|
-
|
$
|
1,762
|
$
|
11,840
|
|||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
-
|
1,846
|
-
|
(1,450)
|
396
|
||||||||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
7
|
-
|
(5)
|
2
|
||||||||||
Total Risk Management Assets
|
-
|
1,853
|
-
|
(1,455)
|
398
|
||||||||||
Total Assets
|
$
|
10,078
|
$
|
1,853
|
$
|
-
|
$
|
307
|
$
|
12,238
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
2,382
|
$
|
-
|
$
|
(1,494)
|
$
|
888
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
61
|
-
|
(5)
|
56
|
||||||||||
Total Risk Management Liabilities
|
$
|
-
|
$
|
2,443
|
$
|
-
|
$
|
(1,499)
|
$
|
944
|
SWEPCo
|
|||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|||||||||||||||
December 31, 2012
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Other
|
Total
|
|||||||||||
Assets:
|
(in thousands)
|
||||||||||||||
Risk Management Assets
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
2,804
|
$
|
-
|
$
|
(2,133)
|
$
|
671
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
41
|
-
|
(17)
|
24
|
||||||||||
Total Risk Management Assets
|
$
|
-
|
$
|
2,845
|
$
|
-
|
$
|
(2,150)
|
$
|
695
|
|||||
Liabilities:
|
|||||||||||||||
Risk Management Liabilities
|
|||||||||||||||
Risk Management Commodity Contracts (a) (b)
|
$
|
-
|
$
|
3,261
|
$
|
-
|
$
|
(2,133)
|
$
|
1,128
|
|||||
Cash Flow Hedges:
|
|||||||||||||||
Commodity Hedges (a)
|
-
|
17
|
-
|
(17)
|
-
|
||||||||||
Total Risk Management Liabilities
|
$
|
-
|
$
|
3,278
|
$
|
-
|
$
|
(2,150)
|
$
|
1,128
|
(a)
|
Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”
|
(b)
|
Substantially comprised of power contracts for APCo, I&M and OPCo and coal contracts for PSO and SWEPCo.
|
(c)
|
Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.
|
(d)
|
Amounts represent publicly traded equity securities and equity-based mutual funds.
|
(e)
|
Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.
|
Three Months Ended June 30, 2013
|
APCo
|
I&M
|
OPCo
|
|||||||
(in thousands)
|
||||||||||
Balance as of March 31, 2013
|
$
|
8,756
|
$
|
6,051
|
$
|
12,381
|
||||
Realized Gain (Loss) Included in Net Income
|
||||||||||
(or Changes in Net Assets) (a) (b)
|
(369)
|
(255)
|
(522)
|
|||||||
Unrealized Gain (Loss) Included in Net
|
||||||||||
Income (or Changes in Net Assets) Relating
|
||||||||||
to Assets Still Held at the Reporting Date (a)
|
-
|
-
|
2,390
|
|||||||
Realized and Unrealized Gains (Losses)
|
||||||||||
Included in Other Comprehensive Income
|
-
|
-
|
-
|
|||||||
Purchases, Issuances and Settlements (c)
|
641
|
443
|
906
|
|||||||
Transfers into Level 3 (d) (e)
|
243
|
168
|
344
|
|||||||
Transfers out of Level 3 (e) (f)
|
(362)
|
(250)
|
(512)
|
|||||||
Changes in Fair Value Allocated to Regulated
|
||||||||||
Jurisdictions (g)
|
4,067
|
2,810
|
3,360
|
|||||||
Balance as of June 30, 2013
|
$
|
12,976
|
$
|
8,967
|
$
|
18,347
|
Three Months Ended June 30, 2012
|
APCo
|
I&M
|
OPCo
|
|||||||
(in thousands)
|
||||||||||
Balance as of March 31, 2012
|
$
|
7,981
|
$
|
5,614
|
$
|
11,767
|
||||
Realized Gain (Loss) Included in Net Income
|
||||||||||
(or Changes in Net Assets) (a) (b)
|
(3,210)
|
(2,258)
|
(4,734)
|
|||||||
Unrealized Gain (Loss) Included in Net
|
||||||||||
Income (or Changes in Net Assets) Relating
|
||||||||||
to Assets Still Held at the Reporting Date (a)
|
-
|
-
|
1,711
|
|||||||
Realized and Unrealized Gains (Losses)
|
||||||||||
Included in Other Comprehensive Income
|
(11)
|
(8)
|
(16)
|
|||||||
Purchases, Issuances and Settlements (c)
|
4,988
|
3,508
|
7,355
|
|||||||
Transfers into Level 3 (d) (e)
|
1,301
|
915
|
1,919
|
|||||||
Transfers out of Level 3 (e) (f)
|
(557)
|
(392)
|
(821)
|
|||||||
Changes in Fair Value Allocated to Regulated
|
||||||||||
Jurisdictions (g)
|
2,372
|
1,670
|
1,788
|
|||||||
Balance as of June 30, 2012
|
$
|
12,864
|
$
|
9,049
|
$
|
18,969
|
Six Months Ended June 30, 2013
|
APCo
|
I&M
|
OPCo
|
|||||||
(in thousands)
|
||||||||||
Balance as of December 31, 2012
|
$
|
10,979
|
$
|
7,541
|
$
|
15,429
|
||||
Realized Gain (Loss) Included in Net Income
|
||||||||||
(or Changes in Net Assets) (a) (b)
|
(3,532)
|
(2,439)
|
(4,990)
|
|||||||
Unrealized Gain (Loss) Included in Net
|
||||||||||
Income (or Changes in Net Assets) Relating
|
||||||||||
to Assets Still Held at the Reporting Date (a)
|
-
|
-
|
598
|
|||||||
Realized and Unrealized Gains (Losses)
|
||||||||||
Included in Other Comprehensive Income
|
-
|
-
|
-
|
|||||||
Purchases, Issuances and Settlements (c)
|
2,859
|
1,977
|
4,045
|
|||||||
Transfers into Level 3 (d) (e)
|
875
|
602
|
1,231
|
|||||||
Transfers out of Level 3 (e) (f)
|
(941)
|
(648)
|
(1,326)
|
|||||||
Changes in Fair Value Allocated to Regulated
|
||||||||||
Jurisdictions (g)
|
2,736
|
1,934
|
3,360
|
|||||||
Balance as of June 30, 2013
|
$
|
12,976
|
$
|
8,967
|
$
|
18,347
|
Six Months Ended June 30, 2012
|
APCo
|
I&M
|
OPCo
|
|||||||
(in thousands)
|
||||||||||
Balance as of December 31, 2011
|
$
|
1,971
|
$
|
1,263
|
$
|
2,666
|
||||
Realized Gain (Loss) Included in Net Income
|
||||||||||
(or Changes in Net Assets) (a) (b)
|
(5,313)
|
(3,590)
|
(7,533)
|
|||||||
Unrealized Gain (Loss) Included in Net
|
||||||||||
Income (or Changes in Net Assets) Relating
|
||||||||||
to Assets Still Held at the Reporting Date (a)
|
-
|
-
|
7,035
|
|||||||
Realized and Unrealized Gains (Losses)
|
||||||||||
Included in Other Comprehensive Income
|
52
|
34
|
71
|
|||||||
Purchases, Issuances and Settlements (c)
|
11,499
|
7,811
|
16,397
|
|||||||
Transfers into Level 3 (d) (e)
|
3,562
|
2,341
|
4,934
|
|||||||
Transfers out of Level 3 (e) (f)
|
(4,676)
|
(3,028)
|
(6,388)
|
|||||||
Changes in Fair Value Allocated to Regulated
|
||||||||||
Jurisdictions (g)
|
5,769
|
4,218
|
1,787
|
|||||||
Balance as of June 30, 2012
|
$
|
12,864
|
$
|
9,049
|
$
|
18,969
|
|
(a)
|
Included in revenues on the condensed statements of income.
|
|
(b)
|
Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
|
|
(c)
|
Represents the settlement of risk management commodity contracts for the reporting period.
|
|
(d)
|
Represents existing assets or liabilities that were previously categorized as Level 2.
|
|
(e)
|
Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
|
|
(f)
|
Represents existing assets or liabilities that were previously categorized as Level 3.
|
|
(g)
|
Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory liabilities/assets.
|
APCo
|
|||||||||||||||||
Fair Value
|
Valuation
|
Significant
|
Forward Price Range
|
||||||||||||||
Assets
|
Liabilities
|
Technique
|
Unobservable Input (a)
|
Low
|
High
|
||||||||||||
(in thousands)
|
|||||||||||||||||
Energy Contracts
|
$
|
11,823
|
$
|
1,613
|
Discounted Cash Flow
|
Forward Market Price
|
$
|
11.48
|
$
|
70.90
|
|||||||
FTRs
|
3,703
|
937
|
Discounted Cash Flow
|
Forward Market Price
|
(12.31)
|
11.19
|
|||||||||||
Total
|
$
|
15,526
|
$
|
2,550
|
I&M
|
|||||||||||||||||
Fair Value
|
Valuation
|
Significant
|
Forward Price Range
|
||||||||||||||
Assets
|
Liabilities
|
Technique
|
Unobservable Input (a)
|
Low
|
High
|
||||||||||||
(in thousands)
|
|||||||||||||||||
Energy Contracts
|
$
|
8,170
|
$
|
1,115
|
Discounted Cash Flow
|
Forward Market Price
|
$
|
11.48
|
$
|
70.90
|
|||||||
FTRs
|
2,559
|
647
|
Discounted Cash Flow
|
Forward Market Price
|
(12.31)
|
11.19
|
|||||||||||
Total
|
$
|
10,729
|
$
|
1,762
|
OPCo
|
|||||||||||||||||
Fair Value
|
Valuation
|
Significant
|
Forward Price Range
|
||||||||||||||
Assets
|
Liabilities
|
Technique
|
Unobservable Input (a)
|
Low
|
High
|
||||||||||||
(in thousands)
|
|||||||||||||||||
Energy Contracts
|
$
|
16,717
|
$
|
2,282
|
Discounted Cash Flow
|
Forward Market Price
|
$
|
11.48
|
$
|
70.90
|
|||||||
FTRs
|
5,236
|
1,324
|
Discounted Cash Flow
|
Forward Market Price
|
(12.31)
|
11.19
|
|||||||||||
Total
|
$
|
21,953
|
$
|
3,606
|
|
(a)
|
Represents market prices in dollars per MWh.
|
Principal
|
Interest
|
|||||||||
Company
|
Type of Debt
|
Amount (a)
|
Rate
|
Due Date
|
||||||
Issuances:
|
(in thousands)
|
(%)
|
||||||||
I&M
|
Notes Payable
|
$
|
101,354
|
Variable
|
2017
|
|||||
I&M
|
Senior Unsecured Notes
|
250,000
|
3.20
|
2023
|
||||||
OPCo
|
Long-term Debt - Affiliated
|
200,000
|
(b)
|
Variable
|
2015
|
|||||
OPCo
|
Pollution Control Bonds
|
50,000
|
Variable
|
2014
|
|
(a)
|
Amounts indicated on the statements of cash flows are net of issuance costs and premium or discount and will not tie to the issuance amounts.
|
|
(b)
|
Intercompany issuance from AEP consisting of a draw on a $1 billion term credit facility due in May 2015.
|
Principal
|
Interest
|
||||||||||
Company
|
Type of Debt
|
Amount Paid
|
Rate
|
Due Date
|
|||||||
Retirements and
|
(in thousands)
|
(%)
|
|||||||||
Principal Payments:
|
|||||||||||
APCo
|
Land Note
|
$
|
14
|
13.718
|
2026
|
||||||
I&M
|
Notes Payable
|
6,083
|
5.44
|
2013
|
|||||||
I&M
|
Notes Payable
|
9,811
|
4.00
|
2014
|
|||||||
I&M
|
Notes Payable
|
8,054
|
Variable
|
2015
|
|||||||
I&M
|
Notes Payable
|
9,731
|
Variable
|
2016
|
|||||||
I&M
|
Notes Payable
|
6,739
|
2.12
|
2016
|
|||||||
I&M
|
Notes Payable
|
20,859
|
Variable
|
2016
|
|||||||
I&M
|
Other Long-term Debt
|
454
|
6.00
|
2025
|
|||||||
I&M
|
Other Long-term Debt
|
2,062
|
Variable
|
2015
|
|||||||
I&M
|
Pollution Control Bonds
|
40,000
|
5.25
|
2025
|
|||||||
OPCo
|
Pollution Control Bonds
|
56,000
|
5.10
|
2013
|
|||||||
OPCo
|
Pollution Control Bonds
|
50,000
|
5.15
|
2026
|
|||||||
OPCo
|
Senior Unsecured Notes
|
250,000
|
5.50
|
2013
|
|||||||
OPCo
|
Senior Unsecured Notes
|
250,000
|
5.50
|
2013
|
|||||||
PSO
|
Notes Payable
|
200
|
3.00
|
2027
|
|||||||
SWEPCo
|
Notes Payable
|
1,625
|
4.58
|
2032
|
Net
|
|||||||||||||||||||
Loans to
|
|||||||||||||||||||
Maximum
|
Maximum
|
Average
|
Average
|
(Borrowings from)
|
Authorized
|
||||||||||||||
Borrowings
|
Loans
|
Borrowings
|
Loans
|
the Utility
|
Short-term
|
||||||||||||||
from the Utility
|
to the Utility
|
from the Utility
|
to the Utility
|
Money Pool as of
|
Borrowing
|
||||||||||||||
Company
|
Money Pool
|
Money Pool
|
Money Pool
|
Money Pool
|
June 30, 2013
|
Limit
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
APCo
|
$
|
217,174
|
$
|
23,871
|
$
|
100,093
|
$
|
23,478
|
$
|
(64,480)
|
$
|
600,000
|
|||||||
I&M
|
23,135
|
355,659
|
8,308
|
198,197
|
273,117
|
500,000
|
|||||||||||||
OPCo
|
410,456
|
169,284
|
241,993
|
31,664
|
(281,672)
|
600,000
|
|||||||||||||
PSO
|
46,806
|
25,343
|
20,136
|
11,603
|
(25,276)
|
300,000
|
|||||||||||||
SWEPCo
|
15,386
|
153,830
|
4,473
|
49,757
|
14,806
|
350,000
|
Maximum
|
Maximum
|
Average
|
Average
|
Borrowings
|
||||||||||
Borrowings
|
Loans
|
Borrowings
|
Loans
|
from the Nonutility
|
||||||||||
from the Nonutility
|
to the Nonutility
|
from the Nonutility
|
to the Nonutility
|
Money Pool as of
|
||||||||||
Money Pool
|
Money Pool
|
Money Pool
|
Money Pool
|
June 30, 2013
|
||||||||||
(in thousands)
|
||||||||||||||
$
|
1,047
|
$
|
1,027
|
$
|
115
|
$
|
208
|
$
|
58
|
Six Months Ended June 30,
|
||||||
2013
|
2012
|
|||||
Maximum Interest Rate
|
0.43
|
%
|
0.56
|
%
|
||
Minimum Interest Rate
|
0.32
|
%
|
0.45
|
%
|
Average Interest Rate
|
Average Interest Rate
|
|||||||||||
for Funds Borrowed
|
for Funds Loaned
|
|||||||||||
from the Utility Money Pool for
|
to the Utility Money Pool for
|
|||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
Company
|
2013
|
2012
|
2013
|
2012
|
||||||||
APCo
|
0.36
|
%
|
0.49
|
%
|
0.36
|
%
|
0.49
|
%
|
||||
I&M
|
0.36
|
%
|
-
|
%
|
0.35
|
%
|
0.49
|
%
|
||||
OPCo
|
0.35
|
%
|
0.47
|
%
|
0.37
|
%
|
0.51
|
%
|
||||
PSO
|
0.34
|
%
|
-
|
%
|
0.38
|
%
|
0.48
|
%
|
||||
SWEPCo
|
0.34
|
%
|
0.53
|
%
|
0.37
|
%
|
0.48
|
%
|
Maximum
|
Minimum
|
Maximum
|
Minimum
|
Average
|
Average
|
|||||||||||||
Interest Rate
|
Interest Rate
|
Interest Rate
|
Interest Rate
|
Interest Rate
|
Interest Rate
|
|||||||||||||
for Funds
|
for Funds
|
for Funds
|
for Funds
|
for Funds
|
for Funds
|
|||||||||||||
Six Months
|
Borrowed from
|
Borrowed from
|
Loaned to
|
Loaned to
|
Borrowed from
|
Loaned to
|
||||||||||||
Ended
|
the Nonutility
|
the Nonutility
|
the Nonutility
|
the Nonutility
|
the Nonutility
|
the Nonutility
|
||||||||||||
June 30,
|
Money Pool
|
Money Pool
|
Money Pool
|
Money Pool
|
Money Pool
|
Money Pool
|
||||||||||||
2013
|
0.61
|
%
|
0.57
|
%
|
0.35
|
%
|
0.32
|
%
|
0.61
|
%
|
0.34
|
%
|
Short-term Debt
|
||||||||||||||||
The Registrant Subsidiaries’ outstanding short-term debt was as follows:
|
||||||||||||||||
June 30, 2013
|
December 31, 2012
|
|||||||||||||||
Outstanding
|
Interest
|
Outstanding
|
Interest
|
|||||||||||||
Company
|
Type of Debt
|
Amount
|
Rate (a)
|
Amount
|
Rate (a)
|
|||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
SWEPCo
|
Line of Credit – Sabine
|
$
|
-
|
-
|
%
|
$
|
2,603
|
1.82
|
%
|
June 30,
|
December 31,
|
||||||
Company
|
2013
|
2012
|
|||||
(in thousands)
|
|||||||
APCo
|
$
|
146,352
|
$
|
153,719
|
|||
I&M
|
139,932
|
123,447
|
|||||
OPCo
|
339,389
|
300,675
|
|||||
PSO
|
127,497
|
85,530
|
|||||
SWEPCo
|
166,278
|
132,449
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||
Company
|
2013
|
2012
|
2013
|
2012
|
|||||||||
(in thousands)
|
|||||||||||||
APCo
|
$
|
1,459
|
$
|
1,556
|
$
|
3,015
|
$
|
3,686
|
|||||
I&M
|
1,530
|
1,521
|
2,982
|
3,064
|
|||||||||
OPCo
|
4,695
|
4,622
|
9,364
|
10,538
|
|||||||||
PSO
|
1,351
|
1,825
|
2,765
|
3,557
|
|||||||||
SWEPCo
|
1,384
|
1,548
|
2,764
|
2,934
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||
Company
|
2013
|
2012
|
2013
|
2012
|
|||||||||
(in thousands)
|
|||||||||||||
APCo
|
$
|
342,984
|
$
|
295,879
|
$
|
741,177
|
$
|
642,405
|
|||||
I&M
|
361,417
|
320,415
|
713,247
|
659,996
|
|||||||||
OPCo
|
661,959
|
656,737
|
1,358,917
|
1,494,634
|
|||||||||
PSO
|
321,620
|
303,729
|
561,895
|
576,524
|
|||||||||
SWEPCo
|
389,076
|
379,114
|
721,012
|
700,722
|
SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
|
||||||
VARIABLE INTEREST ENTITIES
|
||||||
June 30, 2013 and December 31, 2012
|
||||||
(in thousands)
|
||||||
Sabine
|
||||||
ASSETS
|
2013
|
2012
|
||||
Current Assets
|
$
|
65,744
|
$
|
56,535
|
||
Net Property, Plant and Equipment
|
163,078
|
170,436
|
||||
Other Noncurrent Assets
|
65,952
|
55,076
|
||||
Total Assets
|
$
|
294,774
|
$
|
282,047
|
||
LIABILITIES AND EQUITY
|
||||||
Current Liabilities
|
$
|
30,854
|
$
|
31,446
|
||
Noncurrent Liabilities
|
263,553
|
250,340
|
||||
Equity
|
367
|
261
|
||||
Total Liabilities and Equity
|
$
|
294,774
|
$
|
282,047
|
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
|
||||||
VARIABLE INTEREST ENTITIES
|
||||||
June 30, 2013 and December 31, 2012
|
||||||
(in thousands)
|
||||||
DCC Fuel
|
||||||
ASSETS
|
2013
|
2012
|
||||
Current Assets
|
$
|
161,377
|
$
|
132,886
|
||
Net Property, Plant and Equipment
|
219,101
|
176,065
|
||||
Other Noncurrent Assets
|
104,035
|
92,473
|
||||
Total Assets
|
$
|
484,513
|
$
|
401,424
|
||
LIABILITIES AND EQUITY
|
||||||
Current Liabilities
|
$
|
142,829
|
$
|
120,873
|
||
Noncurrent Liabilities
|
341,684
|
280,551
|
||||
Equity
|
-
|
-
|
||||
Total Liabilities and Equity
|
$
|
484,513
|
$
|
401,424
|
June 30, 2013
|
December 31, 2012
|
||||||||||||
As Reported on
|
Maximum
|
As Reported on
|
Maximum
|
||||||||||
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
Exposure
|
||||||||||
(in thousands)
|
|||||||||||||
Capital Contribution from SWEPCo
|
$
|
7,643
|
$
|
7,643
|
$
|
7,643
|
$
|
7,643
|
|||||
Retained Earnings
|
974
|
974
|
946
|
946
|
|||||||||
SWEPCo's Guarantee of Debt
|
-
|
49,600
|
-
|
49,564
|
|||||||||
Total Investment in DHLC
|
$
|
8,617
|
$
|
58,217
|
$
|
8,589
|
$
|
58,153
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
Company
|
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
||||||||||||
APCo
|
$
|
41,496
|
$
|
43,894
|
$
|
80,537
|
$
|
82,440
|
||||
I&M
|
28,706
|
31,377
|
56,204
|
57,484
|
||||||||
OPCo
|
57,351
|
67,490
|
111,420
|
120,935
|
||||||||
PSO
|
19,807
|
21,301
|
37,969
|
38,897
|
||||||||
SWEPCo
|
29,595
|
33,246
|
57,075
|
59,966
|
June 30, 2013
|
December 31, 2012
|
|||||||||||
As Reported on the
|
Maximum
|
As Reported on the
|
Maximum
|
|||||||||
Company
|
Balance Sheet
|
Exposure
|
Balance Sheet
|
Exposure
|
||||||||
(in thousands)
|
||||||||||||
APCo
|
$
|
12,440
|
$
|
12,440
|
$
|
29,819
|
$
|
29,819
|
||||
I&M
|
7,764
|
7,764
|
17,911
|
17,911
|
||||||||
OPCo
|
16,800
|
16,800
|
39,323
|
39,323
|
||||||||
PSO
|
5,380
|
5,380
|
13,381
|
13,381
|
||||||||
SWEPCo
|
8,801
|
8,801
|
19,669
|
19,669
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
Company
|
2013
|
2012
|
2013
|
2012
|
||||||||
(in thousands)
|
||||||||||||
I&M
|
$
|
53,191
|
$
|
53,917
|
$
|
111,726
|
$
|
112,739
|
||||
OPCo
|
31,910
|
44,823
|
70,621
|
103,239
|
June 30, 2013
|
December 31, 2012
|
|||||||||||
As Reported on
|
Maximum
|
As Reported on
|
Maximum
|
|||||||||
Company
|
the Balance Sheet
|
Exposure
|
the Balance Sheet
|
Exposure
|
||||||||
(in thousands)
|
||||||||||||
I&M
|
$
|
20,126
|
$
|
20,126
|
$
|
25,498
|
$
|
25,498
|
||||
OPCo
|
12,771
|
12,771
|
16,302
|
16,302
|
Company
|
Total Cost Incurred
|
||
(in thousands)
|
|||
APCo
|
$
|
8,472
|
|
I&M
|
5,678
|
||
OPCo
|
13,498
|
||
PSO
|
3,675
|
||
SWEPCo
|
5,709
|
Expense
|
Incurred for
|
Remaining
|
|||||||||||||||||
Balance as of
|
Allocation from
|
Registrant
|
Balance as of
|
||||||||||||||||
Company
|
December 31, 2012
|
AEPSC
|
Subsidiaries
|
Settled
|
Adjustments
|
June 30, 2013
|
|||||||||||||
(in thousands)
|
|||||||||||||||||||
APCo
|
$
|
1,321
|
$
|
1,355
|
$
|
-
|
$
|
(1,908)
|
$
|
(735)
|
$
|
33
|
|||||||
I&M
|
1,357
|
953
|
-
|
(1,882)
|
(379)
|
49
|
|||||||||||||
OPCo
|
3,450
|
1,834
|
6,114
|
(8,413)
|
(1,648)
|
1,337
|
|||||||||||||
PSO
|
652
|
487
|
-
|
(642)
|
(472)
|
25
|
|||||||||||||
SWEPCo
|
627
|
864
|
-
|
(1,789)
|
405
|
107
|
Through 2020
|
|||||||
Estimated Environmental Investment
|
|||||||
Company
|
Low
|
High
|
|||||
(in millions)
|
|||||||
APCo
|
$
|
330
|
$
|
440
|
|||
I&M
|
510
|
610
|
|||||
OPCo
|
840
|
1,080
|
|||||
PSO
|
310
|
380
|
|||||
SWEPCo
|
1,430
|
1,750
|
Generating
|
|||||
Company
|
Plant Name and Unit
|
Capacity
|
|||
(in MWs)
|
|||||
APCo
|
Clinch River Plant, Unit 3
|
235
|
|||
APCo
|
Glen Lyn Plant
|
335
|
|||
APCo
|
Kanawha River Plant
|
400
|
|||
APCo/OPCo
|
Philip Sporn Plant, Units 1-4
|
600
|
|||
I&M
|
Tanners Creek Plant, Units 1-3
|
495
|
|||
OPCo
|
Kammer Plant
|
630
|
|||
OPCo
|
Muskingum River Plant, Units 1-5
|
1,440
|
|||
OPCo
|
Picway Plant
|
100
|
|||
PSO
|
Northeastern Station, Unit 4
|
470
|
|||
SWEPCo
|
Welsh Plant, Unit 2
|
528
|
Generating
|
|||||
Company
|
Plant Name and Unit
|
Capacity
|
|||
(in MWs)
|
|||||
APCo
|
Clinch River Plant, Units 1-2
|
470
|
|||
I&M/AEGCo/KPCo
|
Rockport Plant, Units 1-2
|
2,620
|
|||
I&M
|
Tanners Creek Plant, Unit 4
|
500
|
|||
PSO
|
Northeastern Station, Unit 3
|
460
|