2010 AEP Fact Book

2010 Fact Book
45th EEI
Financial Conference
Palm Desert, CA

“Safe Harbor” Statement under the Private Securities
Litigation Reform Act of 1995
This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant
Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results
to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: the economic
climate and growth in, or contraction within, our service territory and changes in market demand and demographic patterns, 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 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 I&M’s Donald C. Cook Nuclear Plant Unit 1 restoration costs through warranty, insurance and the regulatory process, our ability to recover regulatory assets and stranded
costs in connection with deregulation, 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, including the Turk Plant, and transmission line 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 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, timing and resolution of pending and future rate
cases, negotiations and other regulatory decisions (including rate or other recovery of new investments in generation, distribution and transmission service and environmental
compliance), resolution of litigation (including the dispute with Bank of America), our ability to constrain operation and maintenance costs, our ability to develop and execute a
strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities, changes in the creditworthiness of the counterparties with whom we
have contractual arrangements, including participants in the energy trading market, actions of rating agencies, including changes in the ratings of debt, volatility and changes in
markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities, changes in utility regulation, including the implementation of ESPs and related
regulation in Ohio and the allocation of costs within regional transmission organizations, including PJM and SPP, accounting pronouncements periodically issued by accounting
standard-setting bodies, the impact of volatility in the capital markets on the value of the investments held by our pension, other postretirement benefit plans and nuclear
decommissioning trust and the impact on future funding requirements, 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, other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs),
embargoes and other catastrophic events and our ability to recover through rates the remaining unrecovered investment, if any, in generating units that may be retired before the
end of their previously projected useful lives.
Investor Relations Contacts
Chuck Zebula
Treasurer
SVP Investor Relations
614-716-2800
cezebula@aep.com

Bette Jo Rozsa Julie Sherwood Sara Macioch
Managing Director Director Analyst
Investor Relations Investor Relations Investor Relations
614-716-2840 614-716-2663 614-716-2835
bjrozsa@aep.com jasherwood@aep.com semacioch@aep.com
2

Coal Generation & Regulation Operating Company Company Overview
Environmental Overview

Company Overview
OUR FOCUS IS OUR CORE
DOMESTIC UTILITY BUSINESS OPERATIONS

American Electric Power Company, Inc. is one of the largest investor-owned electric public utility holding companies in the US. We provide
generation, transmission and distribution services to over 5 million retail customers in eleven states (Arkansas, Indiana, Kentucky,
Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia) through our electric utility operating companies.

We have seven regional operating companies for distribution and customer service operations
that serve the customers of our eleven electric utility subsidiaries:

Regional Utility Divisions Electric Utility Subsidiaries

Columbus Southern Power
AEP Ohio Ohio Power
Wheeling Power

Texas Central Company
AEP Texas
Texas North Company

Appalachian Power
Appalachian Power
Kingsport Power

Indiana Michigan Power Indiana Michigan Power

Kentucky Power Kentucky Power

Public Service Company of Oklahoma Public Service Company of Oklahoma

Southwestern Electric Power Co. Southwestern Electric Power Co.
4

Company Overview

SIGNIFICANT PRESENCE THROUGHOUT
THE DOMESTIC VALUE CHAIN

Our US electric assets include:

Almost 39,000 megawatts of generating capacity in 3 RTOs (one of the largest US
generation portfolios with a significant cost advantage in many of our market areas)

Approximately 39,000 circuit miles of transmission lines, including 2,116 miles of
765kV lines, the backbone of the electric interconnection grid in the Eastern U.S.

Approximately 215,000 miles of overhead and underground distribution lines

With our coal and transportation assets we:

control over 9,000 railcars

own and/or operate approximately 3,000 hopper barges, 62 towboats and 27 harbor boats

operate one active coal-handling terminal with 18 millions tons of capacity

AEP consumes approximately 70 million tons of coal annually.
5

AEP Service Territory
AEP EAST OPERATING COMPANIES

EAST REGULATED UTILITIES AEP OHIO
Appalachian Power Company (APCo) Columbus Southern Power Company (CSPCo)
Indiana Michigan Power Company (I&M) Ohio Power Company (OPCo)
Kingsport Power Company (KGPCo)
Kentucky Power Company (KPCo)
Wheeling Power Company (WPCo)

6

AEP Service Territory
AEP WEST OPERATING COMPANIES

WEST REGULATED UTILITIES AEP TEXAS

Public Service Company of Oklahoma (PSO) Texas Central Company (TCC)
Southwestern Electric Power Company (SWEPCO) Texas North Company (TNC)

Texas North Company

Texas Central Company

7

Utility Operations - Load

60,000
55,000
57,235 59,182 58,892 58,232 3 Yr. Compound Annual
50,000 48,250
Millions of
45,000
Residential Load Growth at 0.58%
kWh
40,000
35,000
30,000
2006 2007 2008 2009 YTD10
45,000
49,925
Residential 48,557 50,611 50,382
40,000 38,508
Millions of
35,000
kWh
3 Yr. Compound Annual Commercial
30,000
Load Growth at 0.93%
25,000
2006 2007 2008 2009 YTD10

60,000 Com m ercial
63,555 64,508
55,000 59,656
50,000 54,428
Millions of
45,000 42,503
kWh
40,000
35,000
30,000
2006 2007 2008 2009 YTD10
3 Yr. Compound Annual Industrial
Load Contraction at 3.01%
Industrial

8 Note: Figures do not include Wholesale and Miscellaneous Other

2009 Retail Revenue
 `
CUSTOMER PROFILE
AEP’S SERVICE TERRITORY ENCOMPASSES
APPROXIMATELY 5 MILLION CUSTOMERS IN 11 STATES

Percentage of
AEP System Retail Revenues Retail Revenue Composition by Customer Class*
2%1%
Ohio 3% 2% 25.8%
5%
Virginia

Texas 10%
33%
43.2% Residential
Oklahoma Commercial
Indiana
10%
Industrial
West Virginia

Kentucky

Louisiana 10%
31.1%
12%
Arkansas 12%
Michigan
Top 10 Customers Across the AEP System By NAICS Code
Tennessee
3330 PRIMARY SMELTING & REFINING OF NONFERROUS METALS
2800 CHEMICALS & ALLIED PRODUCTS
2911 PETROLEUM REFINING
1220 BITUMINOUS COAL & LIGNITE MINING
2600 PAPERS & ALLIED PRODUCTS
3060 FABRICATED RUBBER PRODUCTS
1389 OIL & GAS FIELD SERVICES
2000 FOOD & KINDRED PRODUCTS
3272/3281 STONE CLAY & CONCRETE PRODUCTS
3700 TRANSPORTATION EQUIPMENT
Source: Form 10-K.
9 *Note: Figures do not include Other Retail Sales

Domestic Generation Fleet
Pumped
Storage/Hydro/ Pumped
Nuclear Storage/Hydro
Wind/Solar
5% 1%
Nuclear 7% Nat. Gas/Oil
5% 6%

Nat. Gas/Oil
23%

Coal/Lignite
65%

Coal/Lignite
88%

2010 Generation Capacity 2009 Generation Production
by Fuel Type by Fuel Type
Based on 39,910 MW Based on 160,276,948 MWh
NERC Regional Presence

RFC 71%
SPP 26%
ERCOT 3%
10

Transmission Line Circuit Miles Detail
Operating Company Level (Circuit Miles)
Operating Company 765kV 500kV 345kV 230kV 161kV 138kV 115kV 88kV 69kV 46kV 40kV 34.5kV 23kV Total

APCo 734 97 383 106 0 3,344 0 23 1,101 789 0 230 0 6,807
CSPCo 0 0 890 0 0 906 0 0 467 0 59 0 113 2,435
I&M 615 0 1,614 0 0 1,669 0 0 710 0 0 739 0 5,347
KGPCo 0 0 0 0 0 0 0 0 3 0 0 27 0 30
KPCo 258 0 8 0 46 335 0 0 544 55 0 3 0 1,249
OPCo 509 0 909 0 0 2,445 0 0 2,183 0 0 365 112 6,523
PSO 0 0 579 34 8 2,176 10 0 812 0 0 0 0 3,619
SWEPCO 0 0 672 0 233 1,320 56 0 1,503 0 0 0 0 3,784
TCC 0 0 626 0 0 2,332 0 0 1,671 0 0 0 0 4,629
TNC 0 0 223 0 0 1,497 0 0 2,599 0 0 0 0 4,319
WPCo 0 16 9 0 0 174 0 0 88 0 0 0 0 287
Total 2,116 113 5,913 140 287 16,198 66 23 11,681 844 59 1,364 225 39,029

State Level (Circuit Miles)
State 765kV 500kV 345kV 230kV 161kV 138kV 115kV 88kV 69kV 46kV 40kV 34.5kV 23kV Total

Arkansas 0 0 40 0 233 168 42 0 461 0 0 0 0 944
Indiana 599 0 1,380 0 0 1,426 0 0 414 0 0 591 0 4,410
Kentucky 258 0 8 0 46 335 0 0 544 55 0 3 0 1,249
Louisiana 0 0 105 0 0 260 0 0 230 0 0 0 0 595
Michigan 16 0 234 0 0 242 0 0 296 0 0 148 0 936
Ohio 509 0 1,799 0 0 3,350 0 0 2,650 0 59 365 225 8,957
Oklahoma 0 0 625 34 8 2,202 10 0 812 0 0 0 0 3,691
Tennessee 0 0 0 91 0 154 0 0 3 0 0 27 0 275
Texas 0 0 1,330 0 0 4,696 14 0 5,082 0 0 0 0 11,122
W. Virginia 385 17 323 0 0 1,630 0 23 458 741 0 89 0 3,666
Virginia 349 96 69 15 0 1,735 0 0 731 48 0 141 0 3,184
Total 2,116 113 5,913 140 287 16,198 66 23 11,681 844 59 1,364 225 39,029

Note: Transmission line circuit miles are current as of 12/31/09

11

Distribution Line Detail
By
Operating
By State Line Miles* Company Line Miles*

Tennessee 1,536 | KGPCo 1,536
Virginia 30,426 | KPCo 9,926
W. Virginia 21,529 | APCo 50,460
Kentucky 9,926 | OPCo 26,472
Ohio 45,348 | CSP 18,876
Michigan 5,288 | I&M 20,218
Indiana 14,930 | WPCo 1,495
Texas 51,904 | TCC 29,491
Oklahoma 21,951 | TNC 13,815
Arkansas 4,471 | PSO 21,951
Louisiana 7,568 | SWEPCO 20,637

Total 214,877 Total 214,877

* Includes approximately 30,400 miles of underground circuit miles

Year End 2009 data per Small World Graphics.

12

Operating Company Overview
• AEP East Regional Utilities
• AEP West Regional Utilities

13

AEP East Regional Utilities

14

Appalachian Power
President and Chief Operating Officer:
Charles Patton

Appalachian Power Company (APCo)
(organized in Virginia in 1926) is engaged in the generation,
transmission and distribution of electric power to approximately
959,000 retail customers in the southwestern portion of Virginia and
southern West Virginia, and in supplying and marketing electric power
at wholesale to other electric utility companies, municipalities and other
market participants. At December 31, 2009, APCo and its wholly
owned subsidiaries had 2,577 employees. Among the principal
industries served by APCo are paper and rubber products, coal mining,
primary metals, textile mill products, and stone, clay and glass
products. In addition to its AEP System interconnections, APCo also is Total Customers at 12/31/09:
interconnected with the following unaffiliated utility companies:
Carolina Power & Light Company, Duke Carolina and Virginia Electric Residential 818,000
and Power Company. APCo has several points of interconnection with
TVA and has entered into agreements with TVA under which APCo Commercial 130,000
and TVA interchange and transfer electric power over portions of their Industrial 4,000
respective systems. APCo is a member of PJM.
Other 7,000
Total 959,000

PRINCIPAL INDUSTRIES SERVED:
Generating Capacity 6,287 MW
Primary Metals
Coal Mining Generating Capacity by Fuel Mix:
Chemical • Coal: 81.0%
Paper Products
• Hydro/Pump: 10.8%
• Nat Gas: 8.2%

Transmission Miles 6,807
Distribution Miles 50,460
15

Appalachian Power
CAPITAL STRUCTURE (in thousands)

2008 2009 9/30/2010
CAPITAL STRUCTURE
Debt Equity Total Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet 3,369,400 2,394,343 5,763,743 3,706,852 2,789,329 6,496,181 3,616,072 2,800,963 6,417,035
% of Capitalization Per Balance Sheet 58.5% 41.5% 100.0% 57.1% 42.9% 100.0% 56.4% 43.6% 100.0%

FFO Interest Coverage 1.7 3.02 3.39*
FFO Total Debt 4.6% 11.4% 13.8%*
* - calculated on rolling 12-month avg.

2009 Financial Data * (in thousands) 2010 Asset Data ** (in thousands)

Revenue $ 2,182,000 As of 9/30/10

% of AEP Retail 21% Total Assets $ 9,583,474

Net Income $ 156,000 Net Plant Assets $ 7,221,927

Capital Expenditures $ 544,000 Cash $ 2,201

Operating Information***

2009 retail electric sales in megawatt-hours 30,414,469 2009 firm wholesale sales in megawatt-hours 3,420,505
2009 average cost per kilowatt-hour (residential) 8.37 cents 2009 System Peak – (date) January 16 8,308 MW

Sources: * 2009 Form 10-K
** 3Q10 Form 10-Q (unaudited)
*** 2009 FERC Form 1
16

Appalachian Power
APPALACHIAN AREA
TYPICAL BILL COMPARISON **
INVESTOR OWNED UTILITIES *
West Virginia $/month Virginia $/month
West Virginia Customers
APCo 80.47 Old Dominion Power 91.64
APCo 439,831
AEP – Wheeling 80.47 Potomac Edison 95.75
Monongahela Power 381,193
Potomac Edison 91.78 Dominion Virginia 106.32
Potomac Edison 130,304
Monongahela Power 91.78 APCo 114.03
AEP – Wheeling 41,334

Tennessee $/Month
Virginia Customers
AEP – Kingsport 82.92
APCo 518,043
Dominion Virginia 2,268,601
** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage.
Old Dominion Power 30,017 Billing amounts sourced from the EEI Typical Bills and Average Rates Report as
of January 1, 2010.
Potomac Edison 101,722

MAJOR CUSTOMERS:
CNX Gas Company (VA)
Tennessee Customers
Greif Brothers Corporation (VA)
AEP - Kingsport 46,961 Century Aluminum of West Virginia (WV)
WVA Manufacturing (WV)
Roanoke Electric Steel Corporation (VA)
Georgia-Pacific Corporation (VA)
Eastern Associated Coal Corp (WV)
* Customer counts are as of December 31, 2008 and were sourced from table 10 Felman Production (WV)
at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html Alcan Rolled Products (WV)
Consolidation Coal Company (VA)
Top 10 Customers = 40% of industrial sales
(data for year ended December 2009)
Metropolitan areas account for 37% of ultimate sales
110 persons per square mile (U.S. = 87)
(data for 12 months ended December 2009)

17

AEP Ohio - Columbus Southern Power
President and Chief Operating
Officer: Joe Hamrock

AEP Ohio-Columbus Southern Power Company
(CSPCo)
(organized in Ohio in 1937, the earliest direct predecessor company having been
organized in 1883) is engaged in the generation, transmission and distribution of
electric power to approximately 749,000 retail customers in Ohio, and in supplying
and marketing electric power at wholesale to other electric utilities, municipalities
and other market participants. At December 31, 2009, CSPCo had 1,283
employees.

CSPCo’s service area is comprised of two areas in Ohio, which include portions of Total Customers at 12/31/09:
twenty-five counties. One area includes the City of Columbus and the other is a
Residential 667,000
predominantly rural area in south central Ohio. Among the principal industries
services are primary metals, chemical and allied products, health services and Commercial 78,000
electronic machinery. In addition to its AEP System interconnections, CSPCo also
is interconnected with the following unaffiliated utility companies: Duke Energy Industrial 3,500
Ohio, DP&L and Ohio Edison Company. CSPCo is a member of PJM. Other 500
Total 749,000

Primary Metals Generating Capacity 3,738 MW
Chemicals Generating Capacity by Fuel Mix:
Food Products • Coal 63.9%
Rubber & Plastic Products
• Natural Gas 36.1%
Fabricated Metals


18


2008 2009 9/30/2010
CAPITAL STRUCTURE


FFO Total Debt 26.3% 25.9% 24.0%*


As of 9/30/10
Revenue $ 1,735,000



2009 retail sales in megawatt-hours 20,673,469
2009 firm wholesale sales in megawatt-hours 498,182
2009 average cost per kilowatt-hour (residential) 10.26 cents
2009 System Peak – June 25 4,209 MW

19

OHIO INVESTOR OWNED UTILITIES *
TYPICAL BILL COMPARISON ****
Ohio Customers Ohio $/month
AEP (OPCo) 91.03
AEP Ohio ** 1,458,111
AEP (CSP) 106.09
First Energy *** 1,844,202 FE (Toledo Edison) 110.55
DP&L 112.25
Duke Energy Ohio 677,178
FE (Ohio Edison) 112.78
DP&L 514,094
FE (CEI) 127.88
** AEP Ohio - CSPCo = 746,664 *** First Energy - Toledo Edison = 270,430
Duke Energy Ohio 135.69
OPCo = 711,447 CEI = 701,554
Ohio Edison = 872,218
**** Typical bills are displayed in $/month, based on 1,000
kWh of residential usage. Billing amounts sourced
* Customer counts are as of December 31, 2008 and were sourced from table 10 from the EEI Typical Bills and Average Rates Report
at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html as of January 1, 2010. Ohio rates represent POLR
bundled residential rates.

MAJOR CUSTOMERS:

Ormet Aluminum
Eramet Marietta, Inc.
Top 10 customers = 60% of industrial sales
E I duPont de Nemours HQ
Kraton Polymers Metropolitan areas account for 86% of ultimate sales
Glatfelter Company
Anheuser-Busch, Inc.
Griffin Wheel Company, Inc. (data for 12 months ended December 2009)
Ross Products


20

Indiana Michigan Power

Officer: Paul Chodak

Indiana Michigan Power Company (I&M)
(organized in Indiana in 1925) is engaged in the generation,
583,000 retail customers in northern and eastern Indiana and
southwestern Michigan, and in supplying and marketing electric
power at wholesale to other electric utility companies, rural electric
cooperatives, municipalities and other market participants. At
December 31, 2009, I&M had 3,008 employees. Since 1975, I&M has Total Customers at 12/31/09:
leased and operated the assets of the municipal system of the City of
Residential 507,000
Fort Wayne, Indiana. This lease extends through February 2010 and
its termination is currently being litigated. In addition to its AEP Commercial 69,000
System interconnections, I&M is interconnected with the following
unaffiliated utility companies: Central Illinois Public Service Company, Industrial 5,000
Duke Ohio, Commonwealth Edison Company, Consumers Energy Other 2,000
Company, Illinois Power Company, Indianapolis Power & Light
Company, Louisville Gas and Electric Company, Northern Indiana Total 583,000
Public Service Company, Duke Indiana and Richmond Power & Light
Company. I&M is a member of PJM.
Generating Capacity 5,821 MW*

PRINCIPAL INDUSTRIES SERVED: Generating Capacity by Fuel Mix:
• Coal: 68.6%
Primary Metals
Chemicals and Allied Products • Nuclear: 31.1%
Transportation Equipment • Hydro: 0.3%
Rubber and Miscellaneous Plastic Products
Fabricated Metals Products Transmission Miles 5,347

* Includes AEGCo’s share of Rockport of 1, 310MW
21


2008 2009 9/30/2010
CAPITAL STRUCTURE


FFO Total Debt 22.0% 28.9% 25.5%*


As of 9/30/10
Revenue $ 991,000


Capital Expenditures $ 333,000 Cash $ 789


2009 retail electric sales in megawatt-hours 17,642,645
2009 firm wholesale sales in megawatt-hours 4,513,856
2009 System Peak – June 25 4,262MW

22


INDIANA & MICHIGAN INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON **
Indiana Customers Indiana $/month Michigan $/month
I&M 455,120 IP & L 80.07 I&M 73.15
IP & L 468,203 I&M 85.49 Consumers Energy 108.80
NIPSCO 456,302 Duke Energy Indiana 97.16 Detroit Edison 129.05
Duke Energy Indiana 776,647 NIPSCO 110.80

SIGECo 146,339 SIGECo 142.11

** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage.
Michigan Customers Billing amounts sourced from the EEI Typical Bills and Average Rates Report as
of January 1, 2010.
I&M 127,648
Consumers Energy 1,779,1841,804,232 MAJOR CUSTOMERS:
Detroit Edison 2,156,2142,148,520
Steel Dynamics Inc. (IN)
Dock Foundry (MI)
* Customer counts are as of December 31, 2008 and were sourced from table 10
American Axle and Mfg. Co, Inc. (MI)
at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html
IN TEK (IN)
Whirlpool Corporation (MI)
Saint Gobain Corporation USA (IN)
White Pigeon Paper Company (MI)
Top 10 Customers = 49% of industrial sales
Uniroyal Goodrich Tire Co. (IN)
Metropolitan areas account for 68% of ultimate sales The Minute Maid Company (MI)
New Energy Corp (IN)
Rexam Closure Systems, Inc. (MI)

23

Kentucky Power

Officer: Greg Pauley

Kentucky Power Company (KPCo)
(organized in Kentucky in 1919) is engaged in the generation,
175,000 retail customers in an area in eastern Kentucky, and in
supplying and marketing electric power at wholesale to other
electric utility companies, municipalities and other market Total Customers at 12/31/09:
participants. At December 31, 2009, KPCo had 478 employees. In Residential 143,500
addition to its AEP System interconnections, KPCo is
interconnected with the following unaffiliated utility companies: Commercial 29,500
Kentucky Utilities Company and East Kentucky Power Industrial 1,500
Cooperative Inc. KPCo is also interconnected with TVA. KPCo is a
member of PJM. Other 500
Total 175,000

Generating Capacity 1,078 MW
Generating Capacity by Fuel Mix:
Petroleum Refining • Coal: 100%
Coal Mining
Primary Metals Transmission Miles 1,249
Chemical & Allied Products
Electric/Gas/Sanitary Services

24

Kentucky Power

2008 2009 9/30/2010
CAPITAL STRUCTURE

Capitalization Per Balance Sheet 549,954 398,008 947,962 549,207 431,784 980,991 548,847 434,919 983,766

FFO Total Debt 9.9% 19.9% 14.9%*


As of 9/30/10
Revenue $ 487,000




2009 average cost per kilowatt-hour (residential) 7.93cents
2009 System Peak – January 16 1,674 MW
Sources: * 2009 Annual Report
** 3Q10 Financial Statements (unaudited)
25

Kentucky Power

KENTUCKY INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON **
Kentucky Customers Kentucky $/month
KPCo 175,646
Kentucky Utilities 73.57
Duke Energy Kentucky 134,703
LG&E 75.26
Kentucky Utilities 506,419
LG & E 400,699 KPCo 76.57

Duke Energy Kentucky 80.02
* Customer counts are as of December 31, 2008 and were sourced from table 10
** Typical bills are displayed in $/month, based on 1,000 kWh
of residential usage. Billing amounts sourced from the EEI
Typical Bills and Average Rates Report as of January 1,
2010.

MAJOR CUSTOMERS:

Catlettsburg Refining LLC
AK Steel Holding Corporation
Sidney Coal Company, Inc. Top 10 customers = 65% of industrial sales
KES Acquisition Company LLC
Air Products & Chemicals, Inc.
Perry County Coal Corporation 68 persons per square mile (U.S. = 87)
Blue Diamond Coal Company
McCoy Elkhorn Coal Corporation
Kentucky West Virginia Gas Co.
Czar Coal Corporation


26

AEP Ohio - Ohio Power

Officer: Joe Hamrock

AEP Ohio- Ohio Power Company
(OPCo) (organized in Ohio in 1907 and re-incorporated in
1924) is engaged in the generation, transmission and distribution of
electric power to approximately 710,000 retail customers in the
northwestern, east central, eastern and southern sections of Ohio,
and in supplying and marketing electric power at wholesale to other
electric utility companies, municipalities and other market
participants. At December 31, 2009, OPCo had 2,391 employees. In
addition to its AEP System interconnections, OPCo is
interconnected with the following unaffiliated utility companies: Duke Total Customers at 12/31/09:
Ohio, The Cleveland Electric Illuminating Company, DP&L, Residential 608,000
Duquesne Light Company, Kentucky Utilities Company,
Monongahela Power Company, Ohio Edison Company, The Toledo Commercial 92,500
Edison Company and West Penn Power Company. OPCo is a Industrial 7,000
member of PJM.
Other 2,500
Total 710,000

PRINCIPAL INDUSTRIES SERVED: Generating Capacity 8,508 MW
Primary Metals Generating Capacity by Fuel Mix:
Petroleum Refining
• Coal: 99.7%
Rubber & Plastic Products
Chemicals & Allied Products • Hydro: 0.3%
Stone, Clay Glass and Concrete Products
Distribution Miles 26.472
27


2008 2009 9/30/2010
CAPITAL STRUCTURE

% of Capitalization Per Balance Shee 56.4% 43.6% 100.0% 49.9% 50.1% 100.0% 47.5% 52.5% 100.0%

FFO Total Debt 13.3% 22.1% 24.0%*
* - calculated on 12-month rolling avg.


Revenue $ 1,679,000 As of 9/30/10



Operating Information

2009 retail sales in megawatt-hours 24,936,379
2009 System Peak – January 20 4,972 MW

28

OHIO INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON ****

Ohio Customers Ohio $/month
AEP (OPCo) 91.03
AEP Ohio ** 1,458,111
AEP (CSP) 106.09
First Energy *** 1,844,202 FE (Toledo Edison) 110.55
Duke Energy Ohio 677,178 DP&L 112.25
FE (Ohio Edison) 112.78
DP&L 514,094
FE (CEI) 127.88
** AEP Ohio - CSPCo = 746,664 *** First Energy - Toledo Edison = 270,430 Duke Energy Ohio 135.69
OPCo = 711,447 CEI = 701,554
Ohio Edison = 872,218

**** Typical bills are displayed in $/month, based on 1,000
* Customer counts are as of December 31, 2008 and were sourced from table 10 kWh of residential usage. Billing amounts sourced
from the EEI Typical Bills and Average Rates Report
as of January 1, 2010. Ohio rates represent POLR
bundled residential rates.

MAJOR CUSTOMERS:

Ormet Primary Aluminum Corp.
The Premcor Refining Group, Inc.
The Timken Company Top 10 customers = 47% of industrial sales
Republic Engineered Products, LLC
Wheeling-Pittsburgh Steel Corp. Metropolitan areas account for 59% of ultimate sales
Globe Metallurgical, Inc. 137 persons per square mile (U.S. = 87)
Linde Gases, LLC
Marathon Ashland Petroleum, LLC (data for 12 months ended December 2009)
Owens Corning Sales, LLC.


29

AEP West Regional Utilities

30

Public Service Company of Oklahoma
Officer: Stuart Solomon

Public Service Company of Oklahoma (PSO)
(organized in Oklahoma in 1913) is engaged in the generation, transmission
and distribution of electric power to approximately 531,000 retail customers in
eastern and southwestern Oklahoma, and in supplying and marketing electric
power at wholesale to other electric utility companies, municipalities, rural
electric cooperatives and other market participants. At December 31, 2009,
PSO had 1,281 employees. In addition to its AEP System interconnections,
PSO is interconnected with Empire District Electric Co., Oklahoma Gas &
Electric Co., Southwestern Public Service Co. and Westar Energy, Inc. PSO is
a member of SPP. Total Customers at 12/31/09:
Residential 457,000
Commercial 60,000
Industrial 7,000
PRINCIPAL INDUSTRIES SERVED: Other 7,000
Paper Products
Total 531,000
Oil & Gas Extraction
Transportation Equipment
Stone, Clay and Glass Products Generating Capacity 4,465 MW
Petroleum Refining Generating Capacity by Fuel Mix:
• Coal: 23.1%
• Natural Gas: 76.3%
• Oil: 0.6%


31

CAPITAL STRUCTURE (thousands)

2008 2009 9/30/2010
CAPITAL STRUCTURE

Capitalization Per Balance Sheet 955,167 753,508 1,708,675 968,121 817,000 1,785,121 993,667 853,764 1,847,431

FFO Total Debt 27.2% 18.7% 11.6%*
* - calculated on rolling 12-month avg


As of 9/30/10
Revenue $ 998,000




2009 System Peak – July 13 3,994 MW

32


OKLAHOMA INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON **

Oklahoma Customers Oklahoma $/month

PSO 525,801 PSO 62.02
OG&E 702,603 Empire District 78.65
OG&E 86.89
* Customer counts are as of December 31, 2008 and were
sourced from table 10 at ** Typical bills are displayed in $/month, based
http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.ht on 1,000 kWh of residential usage. Billing
ml amounts sourced from the EEI Typical Bills
and Average Rates Report as of January 1,
2010.

MAJOR CUSTOMERS:

Sheffield Steel
Weyerhaeuser Valliant Company Top 10 customers = 45% of industrial sales
Elkem Metals Metropolitan areas account for 76% of ultimate sales
Kimberly Clark Corp.
Goodyear Tire & Rubber Company 48 persons per square mile (U.S. = 87)
American Airlines (data for 12 months ended December 2009)
Sinclair
Sun Refining
Marmac Resources
Terra Nitrogen


33

Southwestern Electric Power
Officer: Venita McCellon-Allen

Southwestern Electric Power Company (SWEPCO)
(organized in Delaware in 1912) is engaged in the generation, transmission and
distribution of electric power to approximately 474,000 retail customers in northeastern
Texas, northwestern Louisiana and western Arkansas, and in supplying and marketing
electric power at wholesale to other electric utility companies, municipalities, rural electric
cooperatives and other market participants. At December 31, 2009, SWEPCo had 1,671
employees. The territory served by SWEPCo also includes several military installations,
colleges, and universities. SWEPCO also owns and operates a lignite coal mining
operation. In addition to its AEP System interconnections, SWEPCo is also interconnected
with CLECO Corp., Empire District Electric Co., Entergy Corp. and Oklahoma Gas &
Electric Co. SWEPCo is a member of SPP.

In November 2009, SWEPCo signed a letter of intent to purchase the transmission and
distribution assets and to assume certain liabilities of Valley Electric Membership Total Customers at 12/31/09:
Corporation (VEMCO) for approximately $96 million, subject to regulatory approval by the Residential 400,000
LPSC and the APSC. VEMCO services approximately 30,000 member customers in eight
parishes south of Shreveport, Louisiana. SWEPCo expects to complete the transaction in Commercial 66,500
the second quarter of 2010. Industrial 7,000
Other 500
Total 474,000

Food Processing Generating Capacity 5,307 MW
Pulp and Paper Manufacturing Generating Capacity by Fuel Mix:
Oil and Gas Extraction • Coal: 38.5%
Chemicals and Allied Products
• Natural Gas: 44.0%
Petroleum Refining
• Lignite: 17.5%
34


2008 2009 9/30/2010
CAPITAL STRUCTURE


FFO Total Debt 16.0% 19.3% 14.3%*


As of 9/30/10
Revenue $ 1,039,000



Operating Information

2009 System Peak – July 13 4,750 MW

35

SOUTHWESTERN INVESTOR
OWNED UTILITIES * TYPICAL BILL COMPARISON **

Arkansas Customers Arkansas $/month Louisiana $/month Texas $/month

SWEPCo 112,843 OG&E 57.37 SWEPCo 69.13 SWEPCo 63.07
SWEPCo 73.20 Entergy Gulf St 83.97 SPSCo 80.48
Entergy AR 688,951
Empire District 87.44 Entergy NO 95.65 Entergy TX 81.70
OG&E 64,284
Entergy AR 106.74 Entergy LA 100.21 El Paso 113.16

Louisiana Customers CLECO 104.29

SWEPCo 178,634 ** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced from
the EEI Typical Bills and Average Rates Report as of January 1, 2010.
CLECO 271,663
Entergy 1,171,895

MAJOR CUSTOMERS:
Texas Customers
SWEPCo 177,786 Lone Star Steel Company (TX)
International Paper Company (TX)
El Paso 273,185 General Motors Corporation (LA)
SPSCo 279,551 Calumet Lubricants (LA)
Libbey Glass Inc. (LA)
Entergy TX 396,885 Domtar, Inc (AR)
* Customer counts are as of December 31, 2008 and were sourced from table 10 Pilgrim Pride Corporation (TX)
at http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html Cooper Tire & Rubber Company (AR)
Letourneau Inc.(TX)
Big Three Industrial Gas (TX)
Tyson Foods AR)
Top 10 customers = 50% of industrial sales Glad Manufacturing (AR)
82 persons per square mile (U.S. = 87) (data for year ended December 2009)

36

AEP Texas Central Company

Officer: Wade Smith

AEP Texas - Texas Central Company
(TCC) (organized in Texas in 1945) is engaged in the transmission
and distribution of electric power to approximately 766,000 retail
customers through REPs in southern Texas. Under the Texas Act, TCC
has completed the final stage of exiting the generation business and has
sold of all of its generation assets. At December 31, 2009, TCC had 1,174
employees. In addition to its AEP System interconnections, TCC is a
member of ERCOT.

PRINCIPAL INDUSTRIES SERVED: Total Customers at 12/31/09:
Petroleum Refining (Based on electric meters)
MAJOR CUSTOMERS:
Chemicals & Allied Products Residential 654,000
Valero Energy Corporation Oil and Gas Extraction
Commercial 105,000
Javelina Refinery Food Processing
Formosa Industrial 5,000
Koch Refinery West
Top 10 customers = 49% of industrial sales* ($) Other 2,000
Equistar Bay City
Metropolitan areas account for 78% ultimate Total 766,000
(data for year ended December 2009) sales
58 persons per square mile (U.S. = 87) Transmission Miles 4,629
* Industrial % is in terms of wires revenues Distribution Miles 29,491

37

AEP Texas Central Company

2008 2009 9/30/2010
CAPITAL STRUCTURE

Capitalization Per Balance Sheet 2,901,590 519,964 3,421,554 2,757,966 600,749 3,358,715 2,610,238 624,527 3,234,765

FFO to Total Debt 19.9% 17.2% 18.9%*

2009 Financial Data * (in thousands)
2010 Asset Data ** (in thousands)

Revenue $ 721,000 As of 9/30/10



38

AEP Texas North Company
Officer: Wade Smith

AEP Texas - Texas North Company (TNC)
(organized in Texas in 1927) is engaged in the transmission and
distribution of electric power to approximately 185,000 retail customers
through REPs in west and central Texas. TNC’s remaining generating
capacity that is not deactivated has been transferred to an affiliate at
TNC’s cost pursuant to an agreement effective through 2027. At
December 31, 2009, TNC had 368 employees. The territory served by
TNC also includes several military installations and correctional
facilities. In addition to its AEP System interconnections, TNC is a
member of ERCOT.
Total Customers at 12/31/09:
(Based on electric meters)
Residential 145,000
Commercial 30,000
MAJOR CUSTOMERS: Oil and Gas Extraction
Food Processing Industrial 5,000
Zoltec Corporation Pipelines, except Natural Gas Other 5,000
Sheridan Production Co. Stone, Clay and Glass Production
Kinder Morgan Total 185,000
Electric Equipment
Tyson Foods, Inc.
EBAA Iron
Bandag, LLC. Generating Capacity 377 MW
Oklaunion Plant – Vernon, TX
Top 10 customers = 40% industrial sales* (excludes 270 MW of decommissioned plants)
($)
(data for year ended December 2009) Generating Capacity by Fuel Mix:
Metropolitan areas account for 57%
ultimate sales • Coal: 58.3%

8 persons per square mile (U.S. = 87) • Gas: 40.5%
*Industrial % is in terms of wires revenues • Oil: 1.2%
(data for 12 months ended December 2009) Transmission Miles 4,319
39

AEP Texas North Company

2008 2009 9/30/2010
CAPITAL STRUCTURE

Capitalization Per Balance Sheet 397,651 325,825 723,476 446,256 312,260 758,516 400,155 307,412 707,567

FFO Total Debt 21.9% 12.8% 15.7%*


As of 9/30/10
Revenue $ 115,000

Net Income $ 18,000 Net Plant Assets $ 992,014


40

Regulation
• Regulatory Strategy
• Rate Case Filing Requirements
• Regulatory Activity Underway
• Commission Overviews
• Approved Rate Base and ROE by Operating Company

41

Regulatory Strategy: Reduce Lag
 Maximize frequency of filings
 Seek ability to pro-forma both capital and O&M through date which rates are effective

 Single-issue cost recovery
 Reliability
 Vegetation
 Environmental

 Trackers/Riders/Regulatory Adjustment Clauses
 Federally-approved transmission costs
 Fuel and emissions
 Energy efficiency programs

 Formula rates
 Including periodic true-ups and approved earnings bands

 Future test years
 Accelerated cost recovery/depreciation/replacement cost accounting
 Pre-Approvals
 Securitization
 Return on CWIP

The strategy: reduce the time between in-service dates
and rate recovery
42

Summary of Rate Case Filing Requirements
Arkansas Indiana Kentucky Louisiana Michigan Ohio Oklahoma Texas Virginia West Virginia FERC

General

Time Limitations Between Cases No Yes No No No No No No Yes No No

Period of Limitation (months) -- 15 -- -- -- -- -- -- See note 1 -- --

Pancaking Permitted? No No No No No Limited No No No No Yes

Semi-
Fuel Clause Renewal Frequency Annually Monthly Monthly Annually Quarterly Annually Tri-Annually Annually Annually --
Annually

Notice of Intent

Prior PSC Notice Required? Yes Yes Yes No Optional Yes Yes Yes Yes Yes No

Notice Period (days) 60 Varies 28 N/A 45 30 45 30 60 30 N/A

Case Components

Partially Forecast Forecast Partially Forecast
Test Year Historical Historical Historical Historical Historical Historical
Projected Optional Optional Projected Optional

Other

Rates Effective Subject to Refund Yes No Yes Yes Yes Yes Yes Yes No No Yes

Approx # of Months after Filing to
10 -- 6 8 Varies 9 6 6 5 9 2 or 7
implement rates subject to refund

Note 1: No interim rates provided and rate cases must be filed no less than biennially; historical test year used.

Regulatory framework inherently produces recovery and return lag.

43

Summary Rate Case Information
APCo West Virginia General Rate Case – Docket #10-0699-E-42T
On May 14, 2010, APCo filed a base rate case with the West Virginia Public Service Commission requesting a net
increase of $155.5 million, comprised of a $223.8 million base rate increase and a $68.3 million decrease in the
construction surcharge. The filing related to capital investments made and to recover increased costs. In addition, APCo
requested to establish a separate transmission tracker related to PJM charges. The requested ROE is 11.75%. An order
is expected at the end of March 2011.

Actual Capital Structure – Company Position
(12/31/09)

% of Weighted Required Rate Relief – Company Position (12/31/09)
Capitalization Cost Rate Return
($ in millions)
Short-Term Debt 3.66% 0.89% 0.03%
Long-Term Debt 53.42% 6.04% 3.23%
Common Equity 42.64% 11.75% 5.01% Rate Base $ 2,639.6
Preferred Stock 0.28% 4.35% 0.01% Rate of Return 8.28%
Total 100.00% 8.28% Operating Income Requirement $ 218.6
Adjusted Operating Income $ 86.0
Procedural Schedule Difference $ 132.6
Revenue Conversion Factor 1.6872
July 23, 2010 Company testimony due
Total Revenue Requirement $ 223.8
November 10, 2010 Staff & Intervenor testimony due
November 24, 2010 Rebuttal testimony due
Elimination of Construction Surcharge $ (68.3)
December 13, 2010 Hearing commences $ 155.5
March 31, 2011 Rates effective

44

2010 AEP Fact Book

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2010 AEP Fact Book