File No. 70-9937
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
Amendment No. 2
to
Form U-1
--------------------------------
APPLICATION-DECLARATION
under
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
***
AMERICAN ELECTRIC POWER COMPANY, INC.
CENTRAL POWER AND LIGHT COMPANY
COLUMBUS SOUTHERN POWER COMPANY
OHIO POWER COMPANY
SOUTHWESTERN ELECTRIC POWER COMPANY
WEST TEXAS UTILITIES COMPANY
1 Riverside Plaza, Columbus, Ohio 43215
---------------------------------------
(Name of company or companies filing this statement
and address of principal executive offices)
***
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
---------------------------------------
(Name of top registered holding company parent)
***
A. A. Pena, Senior Vice President and Treasurer
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
Susan Tomasky, Executive Vice President and General Counsel
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
----------------------------------------
(Names and addresses of agents for service)
American Electric Power Company, Inc. ("AEP"), a New York corporation and
a registered holding company under the Public Utility Holding Company Act of
1935, as amended (the "Act"), and its direct and indirect public utility
subsidiaries Central Power and Light Company ("CPL"), Southwestern Electric
Power Company ("SWEPCo"), West Texas Utilities Company ("WTU"), Columbus
Southern Power Company ("CSP") and Ohio Power Company ("OPCo") (collectively,
"the Operating Subsidiaries") propose to amend their Application/Declaration on
Form U-1 in File No. 70-9937 as follows:
1. By restating Item 1. Description of Proposed Transactions
immediately preceding the Rule 54 section as follows:
ITEM 1. DESCRIPTION OF PROPOSED TRANSACTIONS
Background. By Order dated December 30, 1976 (HCAR No.
19829; 70-5930) and in subsequent Orders, the Commission
authorized Central and Southwest Corporation ("CSW"), a
Delaware corporation and a registered holding company under
the Act and a wholly owned subsidiary of AEP, to establish
and utilize a system money pool ("Money Pool") to co-ordinate
short-term borrowings for CSW, its electric subsidiary
companies and Central and South West Services, Inc. as set
forth in Central and South West Corp., HCAR No. 26697 (Mar.
28, 1997, 70-8557) HCAR No 24855 (April 5, 1989, 70-7643),
HCAR No. 26254 (March 21, 1995, 70-8557), HCAR No. 26854
(Apr. 3, 1998, 70-8557).
In its Order dated June 14, 2000 in File 70-9381 (HCAR No.
27186), the Commission authorized AEP to continue the CSW Money Pool
and to add its utility subsidiaries and certain other subsidiaries as
participants in the Money Pool (the "Participants") and established
borrowing limits for all Participants.
American Electric Power Service Corporation ("AEPSC"), a Rule 88
subsidiary service company, acts as administrative agent of the Money
Pool.1 Each Participant and AEP determine, the amount of funds it has
available for contribution to the Money Pool. The determination of
whether a Participant or AEP at any time has surplus funds, or shall
lend such funds to the Money Pool, will be made by such Participant
treasurer, or by a designee thereof, on the basis of cash flow
projections and other relevant factors, in such Participant's sole
discretion. Each Participant may withdraw any of its funds at any
time upon notice to AEPSC.
All short-term borrowing needs of the Participants may be met by
funds in the Money Pool to the extent such funds are available. Each
Participant shall have the right to borrow from the Money Pool from
time to time, subject to the availability of funds and the
limitations and conditions set forth in orders of this Commission;
provided, however, that the aggregate amount of all loans requested
by any Participant approved hereunder shall not exceed the applicable
borrowing limits set forth in orders of the Commission and other
regulatory authorities, resolutions of such Participant's
shareholders and Board of Directors, such Participant's governing
corporate documents, and agreements binding upon such Participant. No
Participant shall be obligated to borrow from the Money Pool if lower
cost funds can be obtained from its own external borrowing. AEP will
not borrow funds from the Money Pool or any Participant.
The Money Pool is composed from time to time of funds from the
following sources: (ii) surplus funds of AEP; (i) surplus funds of
any of the Participants; (iii) borrowings by AEP from sales of
commercial paper notes and/or bank borrowings. AEPSC administers the
AEP money pool by matching up, to the extent possible, short-term
cash surpluses and loan requirements of AEP and the various
Participants. Participant requests for short-term loans are met first
from surplus funds of other Participants which are available to the
money pool and then from AEP corporate funds to the extent available.
To the extent that Participant contributions of surplus fund to the
Money Pool are insufficient to meet Participant requests for
short-term loans, borrowings are made from outside the system.
Each borrowing Participant borrows pro rata from each fund
source in the same proportion that the amount of funds provided from
that fund source bears to the total amount of short-term funds
available to the Money Pool.
Funds which are loaned from Participants into the Money Pool
which are not required to satisfy borrowing needs of other
Participants will be invested by AEP on the behalf of the lending
Participants in one or more short-term instruments.
The Money Pool makes funds available to Participants for the
interim financing of their capital expenditure programs and their
other working capital needs, and to AEP to loan and to make capital
contributions to any of the Participants and in both instances to
repay previous borrowings incurred for such purposes. Funds for the
Money Pool are available from surplus funds from the treasuries of
AEP and the Participants, from proceeds from the sale of commercial
paper by AEP and bank borrowings by AEP and the Participants. Funds
to be loaned to the Participants are obtained in the following order
of priority: (1) available surplus funds of the Participants will be
used to satisfy the borrowing needs of other Participants before any
funds of AEP are used; (2) available surplus funds in AEP's treasury;
and (3) external borrowings by AEP from the sale of commercial paper
and/or bank borrowings. External borrowings by AEP will not be made
unless there are no surplus funds in the treasuries of the
Participants or sufficient to meet borrowing needs. However, no loan
will be made by AEP or any Participant if the borrowing company could
borrow more cheaply directly from banks or through the sale of its
own commercial paper. When more than one Participant is borrowing,
each borrowing Participant will borrow pro rata from each fund source
in the same proportion that the amount of funds provided by that fund
source bears to the total amount of short-term funds available to the
Money Pool.
The interest rate applicable on any day to then outstanding
loans through the Money Pool will be the composite weighted average
daily effective cost incurred by AEP for short-term borrowings from
external sources. If there are no borrowings outstanding then the
rate would be the certificate of deposit yield equivalent of the 30-
day Federal Reserve "AA" Non Financial Commercial Paper Composite
Rate ("Composite"), or if no composite is established for that day
then the applicable rate will be the Composite for the next preceding
day for which the Composite is established.
If the Composite shall cease to exist, then the rate would be
the composite which then most closely resembles the Composite and/or
most closely mirrors the pricing AEP would expect if it had External
Funds.
Interest income related to external investments will be
calculated daily and allocated back to lending parties on the basis
of their relative contribution to the investment pool funds on that
date.
Each Participant receiving a loan hereunder shall repay the
principal amount of such loan, together with all interest accrued
thereon, on demand and in any event not later than the expiration
date of the SEC authorization for the operation of the Money Pool.
All loans made through the Money Pool may be prepaid by the borrower
without premium or penalty.
To provide funds for the Money Pool, AEP currently issues and
sells commercial paper ("Commercial Paper"). The Commercial Paper
matures in 270 days or less and will be issued from time-to-time to
commercial paper dealers ("Dealers") and certain financial
institutions.
The Commercial Paper is currently issued to Dealers in the form
of either physical or book-entry unsecured promissory notes. Such
notes are issued and sold by AEP directly to Dealers at a rate not to
exceed the rate per annum prevailing at the time of issuance for
commercial paper of comparable quality and maturity connection with
the issuance and sale of the Commercial Paper.
AEP and its Participants may borrow money from banks, from
time-to-time to the extent that the surplus funds of AEP and the
Participants are insufficient to meet the Participant's request for
short-term loans and subject to the limitations on aggregate
principal amounts, above. Such borrowing will not be made unless it
would produce a lower cost of money than the issue of AEP's
Commercial Paper and, in any event, they will not bear a rate of
interest higher than the effective cost of money for unsecured prime
commercial bank loans prevailing on the date of borrowing. The
borrowings will be evidenced by promissory notes maturing no later
than one year from date of issuance and will be subject to prepayment
by the borrower, or under certain circumstances with consent of the
lending bank, in whole at any time or in part from time-to-time,
without penalty.
Ohio and Texas Restructuring. CPL, SWEPCo and WTU are public
utilities operating in Texas. Tex. Util. Code Ann. ss. 39.001-909
(Vernon Supp. 2000), commonly referred to as S.B. 7, requires
vertically integrated electric utilities, including WTU and CPL, to
separate ownership of their generating and other power supply assets
from ownership of their transmission and distribution assets no later
than January 1, 2002. Under S.B. 7, vertically integrated utilities
are generally obligated to disaggregate into at least (1) a PGC that
will sell power and energy at wholesale; and (2) an EDC that will own
transmission and local distribution facilities and perform metering
and billing functions, but is prohibited from owning power supply
facilities or selling electricity. By order issued July 7, 2000, the
Public Utility Commission of Texas (PUCT) approved corporate
separation plans CPL, SWEPCo and WTU filed to explain how they will
comply with S.B. 7.
CSP and OPCo are public utilities operating in Ohio. CSP and
OPCo will make certain transfers to comply with the provisions of an
Ohio statute that provides for Competitive Retail Electric Service,
commonly referred to as S.B. 3. Ohio Rev. Code Ann. ss.ss. 4928.01-67
(Anderson 2000). The statute directs vertically integrated electric
utilities that offer retail electric service in Ohio to separate
their generating and other competitive operations (such as
aggregation, marketing, and brokering) and related assets from their
transmission and distribution operations and assets. On September 28,
2000, The Public Utilities Commission of Ohio (Ohio PUC) approved
corporate separation plans CSP and OPCo filed to explain how they
will comply with S.B. 3. Under their approved corporate separation
plans, CSP and OPCo proposed, subject to receipt of federal
regulatory approvals, to transfer their transmission and distribution
assets and operations to EDC affiliates.
The current short-term borrowing limits of the Operating
Subsidiaries under the Money Pool are as follows:
Money Pool Short-Term
Participant Borrowing
Limit
CSP 350,000,000
CPL 600,000,000
OPCo 450,000,000
SWEPCo 250,000,000
WTU 165,000,000
Proposed Transaction. In order to comply with mandates by the
Ohio and Texas legislatures to restructure and pursuant to plans
submitted and approved by the PUCT and the Ohio PUC, CPL, CSP, OPCo,
SWEPCo and WTU (collectively, the "Operating Subsidiaries") may need
to restructure their debt portfolios and may retire and/or redeem
their current outstanding long-term debt and replace such long-term
debt with short-term debt. The Operating Subsidiaries propose to
increase their borrowing limits as follows:
CPL increase from $600 million to
$1.2 billion
CSP increase from $350 million to
$800 million
OPCo increase from $450 million to
$1.0 billion
SWEPCo increase from $250 million to
$350 million
WTU increase from $165 million to
$375 million
This increase in borrowing authority would require that AEP's
external borrowing limit from commercial paper dealers and banks be
increased from $5 billion to $6.910 billion. This increase in AEP's
borrowing limit will ensure that AEP has sufficient borrowing
capacity to obtain external borrowings in order to loan funds through
the Money Pool to the participants when required. AEP and the
Operating Subsidiaries request that such authority extend to December
31, 2002.
AEP hereby represents that it will maintain for itself and for
all the Operating Subsidiaries the common equity at a percentage of
the consolidated capital (inclusive of short-term debt) of 30% during
the authorization period. A chart showing the percentage of equity to
consolidated capital is attached as Exhibit A.
Use of Proceeds: The proposed increase in short-term
borrowings will be used for the following purpose:
CPL, CSP, OPCo, SWEPCo and WTU will utilize the additional
borrowing capacity authorized in this file as a source of funding to
replace a portion of respective long-term securities. As of June 30,
2001, CPL, CSP, OPCo, SWEPCo and WTU currently have $1,597,279,000,
$914,875,000, $1,219,852,000, $760,175,000 and $258,387,000,
respectively, in long-term securities outstanding. These transactions
will not change the debt/equity ratios of the Operating Subsidiaries
nor will they result in a net increase in outstanding securities of
the Operating Subsidiaries and the AEP system.
***
Compliance with Rule 54
Rule 54 provides that, in determining whether to approve an
application which does not relate to any EWG or FUCO, the Commission
shall not consider the effect of the capitalization or earnings of
any such EWG or FUCO which is a subsidiary of a registered holding
company if the requirements of Rule 53(a), (b) and (c) are satisfied.
AEP consummated the merger with Central and South West Corporation on
June 15, 2000 pursuant to an order issued June 14, 2000 (HCAR No.
27186), which further authorized AEP to invest up to 100% of its
consolidated retained earnings, with consolidated retained earnings
to be calculated on the basis of the combined consolidated retained
earnings of AEP and CSW (as extended pursuant to HCAR No. 27316,
December 26, 2000, the "Rule 53(c) Order").
AEP currently meets all of the conditions of Rule 53(a) and none of
the conditions set forth in Rule 53(b) exist or will exist as a
result of the transactions proposed herein.
Rule 53(a)(1) At June 30, 2001, AEP's "aggregate investment", as
defined in Rule 53(a)(1), in EWGs and FUCOs was approximately $1.315
billion, or about 40.6% of AEP's "consolidated retained earnings",
also as defined in Rule 53(a)(1), for the four quarters ended June
30, 2001 ($3.242 billion).
Rule 53(a)(2) Each FUCO in which AEP invests will maintain books and
records and make available the books and records required by Rule
53(a)(2).
Rule 53(a)(3) No more than 2% of the employees of the electric
utility subsidiaries of AEP will, at any one time, directly or
indirectly, render services to any FUCO.
Rule 53(a)(4) AEP has submitted and will submit a copy of Item 9 and
Exhibits G and H of AEP's Form U5S to each of the public service
commissions having jurisdiction over the retail rates of AEP's
electric utility subsidiaries.
Rule 53(b) (i) Neither AEP nor any subsidiary of AEP is the subject
of any pending bankruptcy or similar proceeding; (ii) AEP's average
consolidated retained earnings for the four quarters ended June 30,
2001 ($3,242,159,000) represented a decrease of approximately
$302,490,000 (or 8.5%) in the average consolidated retained earnings
from the four quarters ended June 30, 2000 ($3,544,649,000); and
(iii) for the fiscal year ended December 31, 2000, AEP did not report
operating losses attributable to its direct or indirect investments
in EWGs and FUCOs.
AEP's interests in EWGs and FUCOs have made a positive contribution
to earnings over the four calendar years ending after the Rule 53(c)
Order. Accordingly, since the date of the Rule 53(c) Order, the
capitalization and earnings attributable to AEP's investments in EWGs
and FUCOs has not had an adverse impact on AEP's financial integrity.
Reporting
AEP and the Participants, will report quarterly to the Commission
pursuant to Rule 24 under the Act within 30 days after the end of
each calendar quarter and shall for each company : (a) the aggregate
amount of funds provided to the Money Pool; (b) the aggregate amount
of funds received from the Money Pool; and (c) the balance advanced
to or from the Money Pool as of the end of the period. AEP will also
certify: (a) the average interest rate for the Money Pool over the
period; (b) the aggregate amount of outside borrowings and repayments
during the period of each source of outside borrowings; (c) the
amount outstanding at the end of the period for each source of
outside borrowings; and (d) a detailed listing of commercial paper
outstanding by dealer at the end of the period.
2. Item 3. APPLICABLE STATUTORY PROVISIONS is hereby amended and
restated as follows:
Sections 6(a), 7, 9(a), 10 and 12 (b) and Rules 43 and 45 thereunder
are or may be applicable to the proposed transactions. To the extent
any other sections of the Act may be applicable to the proposed
transactions, the Applicants hereby request appropriate orders
thereunder.
3. Item 6 is hereby amended to add the following Exhibits and
financial Statements
(a) EXHIBIT:
Exhibit F. Opinion of Counsel
(b) INANCIAL STATEMENTS:
Balance Sheets as of June 30, 2001 and Statements of Income and
Retained Earnings for the 6 months ended June 30, 2001 of AEP and its
subsidiaries consolidated and of CPL, CSP, OPCo, SWEPCo and WTU.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the undersigned company has duly caused this Amendment No. 2 to its Form
U-1 to be signed on its behalf by the undersigned thereunto duly authorized.
AMERICAN ELECTRIC POWER COMPANY, INC.
And
Central Power and Light Company
Columbus Southern Power Company
Ohio Power Company
Southwestern Electric Power Company
West Texas Utilities Company
By: /s/ A. A. Pena
Treasurer
Dated: October 25, 2001
EXHIBIT F
(614) 223-1649
October 25, 2001
Securities and Exchange Commission
Division of Corporate Regulation
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: American Electric Power Company, Inc.
Central Power and Light Company
Columbus Southern Power Company
Ohio Power Company
Southwestern Electric Power Company
West Texas Utilities Company
(File No. 70-9937)
Ladies and Gentlemen:
I have acted as counsel for American Electric Power Company, Inc. ("AEP") and
certain of its subsidiaries in the above-captioned matter, which involves the
increase in amount of the short-term financing program for Central Power and
Light Company ("CPL"), Columbus Southern Power Company ("CSP"), Ohio Power
Company ("OPCo"), Southwestern Electric Power Company ("SWEPCO") and West Texas
Utilities Company ("WTU"), as participants ("Participants") in the AEP-system
Money Pool (the "Money Pool") for the period through December 31, 2002. The
proposed short-term borrowings of CPL, CSP, OPCO, SWEPCO, and WTU under the
Money Pool shall be increased so that borrowings may be made in aggregate
amounts not to exceed $350,000,000; $600,000,000; $450,000,000; $250,000,000;
and $165,000,000, outstanding at any one time for the respective Participants
from time to time prior to January 1, 2003.
In connection with my review of the above-described and proposed transactions, I
have examined, among other things, the Application or Declaration on Form U-1,
as amended, through the date thereof, as filed by American and the Participants
with your Commission under the Public Utility Holding Company Act of 1935 as
well as such corporate records of AEP and the Participants, certificate of
public officials, and such other certifications and documents as I have deemed
necessary in connection herewith.
In my opinion, if said Application or Declaration on Form U-1 as filed with your
Commission is granted or permitted to become effective, and if the proposed
transactions are consummated in accordance with said Application or Declaration
on form U-1: (a) all state laws applicable to the proposed transactions will
have been complied with and (b) the consummation of the proposed transactions
will not violate the legal rights of the holders of any securities issued by
AEP, or Participants, or by any associate company of any of them.
I consent to the use of this opinion as part of the above-mentioned Application
or Declaration on Form U-1.
Very truly yours,
/s/ Ann B. Graf
Ann B. Graf
Counsel for
American Electric Power Company, Inc.
Central Power and Light Company
Columbus Southern Power Company
Ohio Power Company
South Western Electric Power Company
West Texas Utilities Company
--------
1 The Commission authorized AEP's predecessor, American Gas and Electric
Company, to create a service company subsidiary, American Gas and electric
Service Corporation, AEPSC's predecessor, on May 15, 1939 (Holding Co. Act
Release No. 1528). The Commission issued two subsequent orders: (1)
authorizing a service agreement between AEPSC and the Electric Utility
Companies on February 23, 1981 (Holding Co. Act Release No. 21922); and (ii)
authorizing amendments to intrasystem service agreements to provide services
to associate nonutility subsidiaries (Nonutility Companies") on April 5, 1995
(Holding Co. Act Release No. 26267).
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per-share amounts)
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
REVENUES $14,528 $8,137 $28,693 $14,254
------- ------ ------- -------
EXPENSES:
Fuel and Purchased Power 12,367 6,318 24,469 10,665
Maintenance and Other Operation 959 870 1,912 1,721
Non-recoverable Merger Costs 7 161 12 161
Depreciation and Amortization 354 305 690 625
Taxes Other Than Income Taxes 169 175 337 346
--- --- --- ---
TOTAL EXPENSES 13,856 7,829 27,420 13,518
------ ----- ------ ------
OPERATING INCOME 672 308 1,273 736
OTHER INCOME (LOSS), net 22 (5) 126 37
-- -- --- --
INCOME BEFORE INTEREST, PREFERRED
DIVIDENDS AND INCOME TAXES 694 303 1,399 773
INTEREST AND PREFERRED DIVIDENDS 241 269 510 522
--- --- --- ---
INCOME BEFORE INCOME TAXES 453 34 889 251
INCOME TAXES 173 52 343 129
--- -- --- ---
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM 280 (18) 546 122
EXTRAORDINARY GAIN (LOSS):
EFFECTS OF DEREGULATION (48) 9 (48) 9
--- - --- -
NET INCOME (LOSS) $ 232 $ (9) $ 498 $ 131
======= ======= ======= =====
AVERAGE NUMBER OF SHARES OUTSTANDING 322 322 322 322
=== === === ===
EARNINGS (LOSS) PER SHARE:
Income (Loss) Before Extraordinary Item $ 0.87 $ (0.06) $ 1.69 $ 0.38
Extraordinary Gain (Loss) (0.15) 0.03 (0.15) 0.03
------ ------ ----- -----
Earnings (Loss) Per Share (Basic and $ 0.72 $ (0.03) $ 1.54 $ 0.41
===== ====== ===== =====
Dilutive)
CASH DIVIDENDS PAID PER SHARE $ 0.60 $ 0.60 $ 1.20 $ 1.20
===== ===== ===== =====
See Notes to Financial Statements beginning on page L-1.
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in millions)
ASSETS
------
CURRENT ASSETS:
Cash and Cash Equivalents $ 212 $ 437
Accounts Receivable (net) 2,532 3,699
Energy Trading Contracts 11,720 16,627
Other 1,688 1,268
----- -----
TOTAL CURRENT ASSETS 16,152 22,031
------ ------
PROPERTY, PLANT AND EQUIPMENT:
Electric:
Production 16,553 16,328
Transmission 6,145 5,609
Distribution 10,973 10,843
Other (including gas and coal mining assets and nuclear fuel) 4,192 4,077
Construction Work in Progress 988 1,231
Total Property, Plant and Equipment 38,851 38,088
Accumulated Depreciation and Amortization 15,984 15,695
------ ------
NET PROPERTY, PLANT AND EQUIPMENT 22,867 22,393
------ ------
REGULATORY ASSETS 3,716 3,698
----- -----
INVESTMENTS IN POWER AND COMMUNICATIONS PROJECTS 521 782
--- ---
GOODWILL (net of amortization) 1,300 1,382
----- -----
LONG-TERM ENERGY TRADING CONTRACTS 3,166 1,620
----- -----
OTHER ASSETS 2,505 2,642
----- -----
TOTAL $50,227 $54,548
======= =======
See Notes to Financial Statements beginning on page L-1.
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 1,252 $ 2,627
Short-term Debt 4,055 4,333
Long-term Debt Due Within One Year 1,024 1,152
Energy Trading Contracts 11,394 16,801
Other 1,925 2,154
----- -----
TOTAL CURRENT LIABILITIES 19,650 27,067
------ ------
LONG-TERM DEBT 10,609 9,602
------ -----
CERTAIN SUBSIDIARY OBLIGATED, MANDATORILY REDEEMABLE,
PREFERRED SECURITIES OF SUBSIDIARY TRUSTS HOLDING SOLELY
JUNIOR SUBORDINATED DEBENTURES OF SUCH SUBSIDIARIES 322 334
--- ---
DEFERRED INCOME TAXES 4,914 4,875
----- -----
DEFERRED INVESTMENT TAX CREDITS 510 528
--- ---
DEFERRED GAIN ON SALE AND LEASEBACK -
ROCKPORT PLANT UNIT 2 199 203
--- ---
LONG-TERM ENERGY TRADING CONTRACTS 2,965 1,381
----- -----
DEFERRED CREDITS AND REGULATORY LIABILITIES 986 637
--- ---
OTHER NONCURRENT LIABILITIES 1,763 1,706
----- -----
CUMULATIVE PREFERRED STOCKS OF SUBSIDIARIES 161 161
--- ---
CONTINGENCIES (Note 8)
COMMON SHAREHOLDERS' EQUITY Common Stock-Par Value $6.50:
2001 2000
---- ----
Shares Authorized. . . . . 600,000,000 600,000,000
Shares Issued. . . . . . . 331,201,100 331,019,146
(8,999,992 shares were held in treasury at June 30, 2000
and December 31, 2000) 2,153 2,152
Paid-in Capital 2,916 2,915
Accumulated Other Comprehensive Income (Loss) (131) (103)
Retained Earnings 3,210 3,090
----- -----
TOTAL COMMON SHAREHOLDERS' EQUITY 8,148 8,054
----- -----
TOTAL $50,227 $54,548
======= =======
See Notes to Financial Statements beginning on page L-1.
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(UNAUDITED)
Accumulated
Other
Common Paid-in Retained Comprehensive
Stock Capital Earnings Income(Loss) Total
------ ------- -------- ------------- -----
(in millions)
JANUARY 1, 2000 $2,149 $2,898 $3,630 $ (4) $8,673
Issuance of Common Stock 2 10 12
Common Stock Dividends (419) (419)
Other (46) (46)
---
8,220
-----
Comprehensive Income:
Other Comprehensive Income,
Net of Taxes
Currency Translation Adjustment (115) (115)
Unrealized Loss on Securities 20 20
Minimum Pension Liability (2) (2)
Net Income 131 131
---
Total Comprehensive Income 34
------ ------ ------ ------ --
JUNE 30, 2000 $2,151 $2,862 $3,342 $(101) $8,254
====== ====== ====== ===== ======
JANUARY 1, 2001 $2,152 $2,915 $3,090 $(103) $8,054
Issuance of Common Stock 1 8 9
Common Stock Dividends (387) (387)
Other (7) 9 2
-
7,678
-----
Comprehensive Income:
Other Comprehensive Income,
Net of Taxes
Currency Translation Adjustment (53) (53)
Unrealized Gain on Hedged 31 31
Derivatives
Minimum Pension Liability (6) (6)
Net Income 498 498
---
Total Comprehensive Income 470
------ ------ ------ ------ ------
JUNE 30, 2001 $2,153 $2,916 $3,210 $(131) $8,148
====== ====== ====== ===== ======
See Notes to Financial Statements beginning on page L-1.
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
OPERATING REVENUES $648,499 $437,911 $1,251,911 $754,239
-------- -------- ---------- --------
OPERATING EXPENSES:
Fuel 147,179 140,841 299,032 230,238
Purchased Power 220,772 34,936 435,338 55,356
Other Operation 76,189 54,307 151,260 129,609
Maintenance 17,995 15,474 35,282 31,896
Depreciation and Amortization 53,587 40,887 95,978 95,085
Taxes Other Than Federal Income Taxes 21,711 19,922 41,199 37,456
Federal Income Taxes 28,715 35,827 47,319 40,232
------ ------ ------ ------
TOTAL OPERATING EXPENSES 566,148 342,194 1,105,408 619,872
------- ------- ---------- -------
OPERATING INCOME 82,351 95,717 146,503 134,367
NONOPERATING INCOME (LOSS) (1,541) 1,815 98 2,362
------ ----- -- -----
INCOME BEFORE INTEREST CHARGES 80,810 97,532 146,601 136,729
INTEREST CHARGES 28,292 29,979 59,052 61,037
------ ------ ------ ------
NET INCOME 52,518 67,553 87,549 75,692
PREFERRED STOCK DIVIDEND REQUIREMENTS 61 61 121 121
-- -- --- ---
EARNINGS APPLICABLE TO COMMON STOCK $ 52,457 $ 67,492 $ 87,428 $ 75,571
======== ======== ======== ========
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD $790,176 $727,973 $792,219 $758,894
NET INCOME 52,518 67,553 87,549 75,692
DEDUCTIONS:
Cash Dividends Declared:
Common Stock 37,014 39,000 74,028 78,000
Preferred Stock 61 61 121 121
-- -- --- ---
BALANCE AT END OF PERIOD $805,619 $756,465 $805,619 $756,465
======== ======== ======== ========
The common stock of the Company is wholly owned by AEP.
See Notes to Financial Statements beginning on page L-1.
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
ASSETS
------
ELECTRIC UTILITY PLANT:
Production $3,163,111 $3,175,867
Transmission 604,057 581,931
Distribution 1,250,224 1,221,750
General 240,386 237,764
Construction Work in Progress 195,948 138,273
Nuclear Fuel 240,151 236,859
------- -------
Total Electric Utility Plant 5,693,877 5,592,444
Accumulated Depreciation and Amortization 2,361,780 2,297,189
--------- ---------
NET ELECTRIC UTILITY PLANT 3,332,097 3,295,255
--------- ---------
OTHER PROPERTY AND INVESTMENTS 46,229 44,225
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 32,199 66,231
------ ------
CURRENT ASSETS:
Cash and Cash Equivalents 5,755 14,253
Accounts Receivable:
Customers 38,616 67,787
Affiliated Companies 12,818 31,272
Allowance for Uncollectible Accounts (1,638) (1,675)
Fuel Inventory - at LIFO cost 39,511 22,842
Materials and Supplies - at average cost 54,127 53,108
Under-recovered Fuel Costs 93,341 127,295
Energy Trading Contracts 112,483 481,206
Prepayments and Other Current Assets 6,151 3,014
----- -----
TOTAL CURRENT ASSETS 361,164 799,102
------- -------
REGULATORY ASSETS 178,299 202,440
------- -------
REGULATORY ASSETS DESIGNATED FOR SECURITIZATION 953,249 953,249
------- -------
NUCLEAR DECOMMISSIONING TRUST FUND 95,032 93,592
------ ------
DEFERRED CHARGES 45,115 18,402
------ ------
TOTAL ASSETS $5,043,384 $5,472,496
========== ==========
See Notes to Financial Statements beginning on page L-1.
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - $25 Par Value:
Authorized - 12,000,000 Shares
Outstanding - 6,755,535 Shares $ 168,888 $ 168,888
Paid-in Capital 405,000 405,000
Retained Earnings 805,619 792,219
------- -------
Total Common Shareowner's Equity 1,379,507 1,366,107
Preferred Stock 5,967 5,967
CPL - Obligated, Mandatorily Redeemable Preferred
Securities of Subsidiary Trust Holding Solely
Junior Subordinated Debentures of CPL 136,750 148,500
Long-term Debt 942,863 1,254,559
------- ---------
TOTAL CAPITALIZATION 2,465,087 2,775,133
--------- ---------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year 511,700 200,000
Advances from Affiliates 223,512 269,712
Accounts Payable - General 115,732 128,957
Accounts Payable - Affiliated Companies 26,657 40,962
Taxes Accrued 128,983 55,526
Interest Accrued 24,221 26,217
Energy Trading Contracts 111,536 489,888
Other 46,778 40,630
------- -------
TOTAL CURRENT LIABILITIES 1,189,119 1,251,892
--------- ---------
DEFERRED INCOME TAXES 1,221,213 1,242,797
--------- ---------
DEFERRED INVESTMENT TAX CREDITS 125,496 128,100
-------- --------
LONG-TERM ENERGY TRADING CONTRACTS 32,999 65,740
------- -------
DEFERRED CREDITS 9,470 8,834
----- -----
CONTINGENCIES (Note 8)
TOTAL CAPITALIZATION AND LIABILITIES $5,043,384 $5,472,496
========== ==========
See Notes to Financial Statements beginning on page L-1.
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
OPERATING REVENUES $1,109,095 $928,332 $2,234,668 $1,561,637
---------- -------- ---------- ----------
OPERATING EXPENSES:
Fuel 42,368 48,581 89,398 89,329
Purchased Power 845,860 685,411 1,717,771 1,100,113
Other Operation 54,510 50,332 109,058 95,621
Maintenance 19,729 18,228 38,509 32,924
Depreciation and Amortization 31,379 24,896 62,861 49,440
Taxes Other Than Federal Income Taxes 32,909 31,084 64,816 62,561
Federal Income Taxes 19,446 19,002 37,429 36,727
------ ------ ------ ------
TOTAL OPERATING EXPENSES 1,046,201 877,534 2,119,842 1,466,715
--------- ------- --------- ---------
OPERATING INCOME 62,894 50,798 114,826 94,922
NONOPERATING INCOME (LOSS)
3,012 2,497 6,484 4,181
----- ----- ----- -----
INCOME BEFORE INTEREST CHARGES 65,906 53,295 121,310 99,103
INTEREST CHARGES 18,488 17,960 36,221 36,297
------ ------ ------ ------
INCOME BEFORE EXTRAORDINARY ITEM 47,418 35,335 85,089 62,806
EXTRAORDINARY LOSS - EFFECTS OF
DEREGULATION (INCLUSIVE OF TAX
BENEFIT OF $8,353,000) (26,407) - (26,407) -
------ ----- ------ ------
NET INCOME 21,011 35,335 58,682 62,806
PREFERRED STOCK DIVIDEND REQUIREMENTS 301 532 603 1,065
----- ----- ----- -----
EARNINGS APPLICABLE TO COMMON STOCK $ 20,710 $ 34,803 $ 58,079 $ 61,741
========== ======== ========== ==========
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD $115,486 $249,872 $ 99,069 $246,584
NET INCOME 21,011 35,335 58,682 62,806
DEDUCTIONS:
Cash Dividends Declared:
Common Stock 20,738 23,650 41,476 47,300
Cumulative Preferred Stock 263 438 525 875
Capital Stock Expense 253 95 507 191
--- -- --- ---
BALANCE AT END OF PERIOD $115,243 $261,024 $115,243 $261,024
======== ======== ======== ========
The common stock of the Company is wholly owned by AEP.
See Notes to Financial Statements beginning on page L-1.
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
ASSETS
------
ELECTRIC UTILITY PLANT:
Production $1,569,118 $1,564,254
Transmission 392,383 360,302
Distribution 1,124,668 1,096,365
General 148,224 156,534
Construction Work in Progress 79,612 89,339
------ ------
Total Electric Utility Plant 3,314,005 3,266,794
Accumulated Depreciation and Amortization 1,337,358 1,299,697
--------- ---------
NET ELECTRIC UTILITY PLANT 1,976,647 1,967,097
--------- ---------
OTHER PROPERTY AND INVESTMENTS 43,283 39,848
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 333,816 172,167
------- -------
CURRENT ASSETS:
Cash and Cash Equivalents 10,030 11,600
Accounts Receivable:
Customers 78,089 73,711
Affiliated Companies 82,426 49,591
Miscellaneous 19,463 18,807
Allowance for Uncollectible Accounts (659) (659)
Fuel - at average cost 20,648 13,126
Materials and Supplies - at average cost 37,333 38,097
Accrued Utility Revenues - 9,638
Energy Trading Contracts 966,617 1,085,989
Prepayments and Other Current Assets 27,334 46,735
------ ------
TOTAL CURRENT ASSETS 1,241,281 1,346,635
--------- ---------
REGULATORY ASSETS 273,528 291,553
------- -------
DEFERRED CHARGES 36,923 77,634
------ ------
TOTAL ASSETS $3,905,478 $3,894,934
========== ==========
See Notes to Financial Statements beginning on page L-1.
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - No Par Value:
Authorized - 24,000,000 Shares
Outstanding - 16,410,426 Shares $ 41,026 $ 41,026
Paid-in Capital 573,861 573,354
Retained Earnings 115,243 99,069
------- ------
Total Common Shareowner's Equity 730,130 713,449
Cumulative Preferred Stock -
Subject to Mandatory Redemption 15,000 15,000
Long-term Debt 899,874 899,615
------- -------
TOTAL CAPITALIZATION 1,645,004 1,628,064
--------- ---------
OTHER NONCURRENT LIABILITIES 40,662 47,584
------ ------
CURRENT LIABILITIES:
Advances from Affiliates 115,302 88,732
Accounts Payable - General 92,461 89,846
Accounts Payable - Affiliated Companies 98,033 72,493
Taxes Accrued 117,277 162,904
Interest Accrued 15,808 13,369
Energy Trading Contracts 944,778 1,115,967
Other 49,943 60,701
------ ------
TOTAL CURRENT LIABILITIES 1,433,602 1,604,012
--------- ---------
DEFERRED INCOME TAXES 431,000 422,759
------- -------
DEFERRED INVESTMENT TAX CREDITS 39,563 41,234
------ ------
REGULATORY LIABILITIES AND DEFERRED CREDITS 15,108 12,861
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 300,539 138,420
------- -------
CONTINGENCIES (Note 8)
TOTAL CAPITALIZATION AND LIABILITIES $3,905,478 $3,894,934
========== ==========
See Notes to Financial Statements beginning on page L-1.
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
OPERATING REVENUES $1,627,177 $1,436,330 $3,326,842 $2,484,167
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Fuel 180,057 177,314 380,618 392,562
Purchased Power 1,146,655 943,060 2,325,561 1,480,788
Other Operation 96,623 86,244 185,029 170,696
Maintenance 36,448 33,595 71,848 61,625
Depreciation and Amortization 57,666 38,843 117,725 77,332
Taxes Other Than Federal Income Taxes 46,193 41,055 87,054 84,787
Federal Income Taxes 16,468 36,251 47,184 71,296
------ ------ ------ ------
TOTAL OPERATING EXPENSES 1,580,110 1,356,362 3,215,019 2,339,086
--------- --------- --------- ---------
OPERATING INCOME 47,067 79,968 111,823 145,081
NONOPERATING INCOME 7,809 1,250 18,917 4,150
----- ----- ------ -----
INCOME BEFORE INTEREST CHARGES 54,876 81,218 130,740 149,231
INTEREST CHARGES 22,782 22,985 45,249 44,782
------ ------ ------ ------
INCOME BEFORE EXTRAORDINARY ITEM 32,094 58,233 85,491 104,449
EXTRAORDINARY LOSS - EFFECTS OF
DEREGULATION (INCLUSIVE OF TAX BENEFIT
OF $11,585,000) (21,515) - (21,515) -
------ ----- ------ -------
NET INCOME 10,579 58,233 63,976 104,449
PREFERRED STOCK DIVIDEND REQUIREMENTS 316 315 630 636
--- --- --- ---
EARNINGS APPLICABLE TO COMMON STOCK $ 10,263 $ 57,918 $ 63,346 $ 103,813
========== ========== ========== ==========
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
NET INCOME $10,579 $58,233 $ 63,976 $ 104,449
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign Currency Exchange Rate Hedge (104) - (325) -
----- ----- ----- ------
COMPREHENSIVE INCOME $10,475 $58,233 $ 63,651 $ 104,449
======= ======= ========== ==========
The common stock of the Company is wholly owned by AEP.
See Notes to Financial Statements beginning on page L-1.
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD $ 415,425 $ 595,620 $ 398,086 $ 587,424
NET INCOME 10,579 58,233 63,976 104,449
CASH DIVIDENDS DECLARED:
Common Stock 35,744 37,703 71,488 75,406
Cumulative Preferred Stock 315 316 629 633
--- --- --- ---
BALANCE AT END OF PERIOD $ 389,945 $ 615,834 $389,945 $ 615,834
========== ========== ======== ==========
See Notes to Financial Statements beginning on page L-1.
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
ASSETS
------
ELECTRIC UTILITY PLANT:
Production $2,955,482 $2,764,155
Transmission 884,720 870,033
Distribution 1,059,174 1,040,940
General (including mining assets) 523,987 707,417
Construction Work in Progress 83,461 195,086
------ -------
Total Electric Utility Plant 5,506,824 5,577,631
Accumulated Depreciation and Amortization 2,670,874 2,764,130
--------- ---------
NET ELECTRIC UTILITY PLANT 2,835,950 2,813,501
--------- ---------
OTHER PROPERTY AND INVESTMENTS 114,811 109,124
------- -------
LONG-TERM ENERGY TRADING CONTRACTS 479,759 256,455
------- -------
CURRENT ASSETS:
Cash and Cash Equivalents 28,943 31,393
Advances to Affiliates - 92,486
Accounts Receivable:
Customers 174,891 139,732
Affiliated Companies 141,778 126,203
Miscellaneous 26,188 39,046
Allowance for Uncollectible Accounts (1,026) (1,054)
Fuel - at average cost 100,400 82,291
Materials and Supplies - at average cost 75,692 96,053
Energy Trading Contracts 1,389,132 1,617,660
Prepayments and Other 17,766 33,146
------ ------
TOTAL CURRENT ASSETS 1,953,764 2,256,956
--------- ---------
REGULATORY ASSETS 674,099 714,710
------- -------
DEFERRED CHARGES 59,384 101,690
------ -------
TOTAL ASSETS $6,117,767 $6,252,436
========== ==========
See Notes to Financial Statements beginning on page L-1.
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - No Par Value:
Authorized - 40,000,000 Shares
Outstanding - 27,952,473 Shares $ 321,201 $321,201
Paid-in Capital 462,483 462,483
Accumulated Other Comprehensive Income (Loss) (325) -
Retained Earnings 389,945 398,086
-------- --------
Total Common Shareholder's Equity 1,173,304 1,181,770
Cumulative Preferred Stock:
Not Subject to Mandatory Redemption 16,648 16,648
Subject to Mandatory Redemption 8,850 8,850
Long-term Debt 1,078,354 1,077,987
-------- --------
TOTAL CAPITALIZATION 2,277,156 2,285,255
-------- --------
OTHER NONCURRENT LIABILITIES 515,450 542,017
------- -------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year - 117,506
Advances from Affiliates 252,323 -
Accounts Payable - General 160,578 179,691
Accounts Payable - Affiliated Companies 77,477 121,360
Customer Deposits 7,368 39,736
Taxes Accrued 184,079 223,101
Interest Accrued 24,299 20,458
Obligations Under Capital Leases 14,057 32,716
Energy Trading Contracts 1,358,005 1,662,315
Other 140,792 151,934
------- -------
TOTAL CURRENT LIABILITIES 2,218,978 2,548,817
--------- ---------
DEFERRED INCOME TAXES 609,885 621,941
------- -------
DEFERRED INVESTMENT TAX CREDITS 23,644 25,214
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 431,934 206,187
------- -------
REGULATORY LIABILITIES AND DEFERRED CREDITS 40,720 23,005
------ ------
CONTINGENCIES (Note 8)
TOTAL CAPITALIZATION AND LIABILITIES $6,117,767 $6,252,436
========== ==========
See Notes to Financial Statements beginning on page L-1.
SOUTHWESTERN ELECTRIC POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
OPERATING REVENUES $434,795 $272,409 $860,484 $484,565
-------- -------- -------- --------
OPERATING EXPENSES:
Fuel 124,151 113,773 242,397 203,125
Purchased Power 168,671 19,252 337,528 30,950
Other Operation 34,071 37,362 73,339 72,060
Maintenance 20,431 20,906 35,667 35,212
Depreciation and Amortization 33,328 27,525 61,458 54,882
Taxes Other Than Federal Income Taxes 14,986 13,455 29,252 24,116
Federal Income Taxes 6,508 6,840 14,208 8,193
----- ----- ------ -----
TOTAL OPERATING EXPENSES 402,146 239,113 793,849 428,538
------- ------- ------- -------
OPERATING INCOME 32,649 33,296 66,635
56,027
NONOPERATING INCOME 30 678 277 445
-- --- --- ---
INCOME BEFORE INTEREST CHARGES 32,679 33,974 66,912 56,472
INTEREST CHARGES 14,895 15,188 29,259 30,023
------ ------ ------ ------
NET INCOME 17,784 18,786 37,653 26,449
PREFERRED STOCK DIVIDEND REQUIREMENTS 58 57 115 114
-- -- --- ---
EARNINGS APPLICABLE TO COMMON STOCK $ 17,726 $ 18,729 $ 37,538 $ 26,335
======== ======== ======== ========
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD $295,248 $275,652 $293,989 $283,546
NET INCOME 17,784 18,786 37,653 26,449
CASH DIVIDENDS DECLARED:
Common Stock 18,552 15,500 37,105 31,000
Preferred Stock 58 57 115 114
-- -- --- --
BALANCE AT END OF PERIOD $294,422 $278,881 $294,422 $278,881
======== ======== ======== ========
The common stock of the Company is wholly owned by AEP.
See Notes to Financial Statements beginning on page L-1.
SOUTHWESTERN ELECTRIC POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
ASSETS
------
ELECTRIC UTILITY PLANT:
Production $1,472,831 $1,414,527
Transmission 531,793 519,317
Distribution 1,024,442 1,001,237
General 327,976 325,948
Construction Work in Progress 48,381 57,995
------ ------
Total Electric Utility Plant 3,405,423 3,319,024
Accumulated Depreciation and Amortization 1,500,099 1,457,005
--------- ---------
NET ELECTRIC UTILITY PLANT 1,905,324 1,862,019
--------- ---------
OTHER PROPERTY AND INVESTMENTS 41,443 39,627
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 32,212 63,028
------ ------
CURRENT ASSETS:
Cash and Cash Equivalents 1,954 1,907
Accounts Receivable:
Customers 50,532 41,399
Affiliated Companies - 11,419
Fuel Inventory - at average cost 43,194 40,024
Under-recovered Fuel 44,916 35,469
Materials and Supplies - at average cost 30,004 25,137
Energy Trading Contracts 112,529 457,936
Prepayments 18,562 16,780
------ ------
TOTAL CURRENT ASSETS 301,691 630,071
------- -------
REGULATORY ASSETS 52,123 57,082
------ ------
DEFERRED CHARGES 83,774 10,707
------ ------
TOTAL ASSETS $2,416,567 $2,662,534
========== ==========
See Notes to Financial Statements beginning on page L-1.
SOUTHWESTERN ELECTRIC POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - $18 Par Value:
Authorized - 7,600,000 Shares
Outstanding - 7,536,640 Shares $ 135,660 $ 135,660
Paid-in Capital 245,000 245,000
Retained Earnings 294,422 293,989
------- -------
Total Common Shareowner's Equity 675,082 674,649
Preferred Stock 4,704 4,704
SWEPCO-OBLIGATED, MANDATORILY REDEEMABLE PREFERRED
SECURITIES OF SUBSIDIARY TRUST HOLDING SOLELY JUNIOR
SUBORDINATED DEBENTURES OF SWEPCO 110,000 110,000
Long-term Debt 494,876 645,368
------- -------
TOTAL CAPITALIZATION 1,284,662 1,434,721
--------- ---------
OTHER NONCURRENT LIABILITIES 32,377 11,290
------ ------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year 150,595 595
Advances from Affiliates 136,483 16,823
Accounts Payable - General 63,892 107,747
Accounts Payable - Affiliated Companies 34,650 36,021
Customer Deposits 20,471 16,433
Taxes Accrued 52,382 11,224
Interest Accrued 13,466 13,198
Energy Trading Contracts 111,582 466,198
Other 20,487 15,064
------ ------
TOTAL CURRENT LIABILITIES 604,008 683,303
------- -------
DEFERRED INCOME TAXES 396,364 399,204
------- -------
DEFERRED INVESTMENT TAX CREDITS 50,955 53,167
------- ------
REGULATORY LIABILITIES AND DEFERRED CREDITS 15,189 18,288
------- ------
LONG-TERM ENERGY TRADING CONTRACTS 33,012 62,561
------- ------
CONTINGENCIES (Note 8)
TOTAL CAPITALIZATION AND LIABILITIES $2,416,567 $2,662,534
========== ==========
See Notes to Financial Statements beginning on page L-1.
WEST TEXAS UTILITIES COMPANY
STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
OPERATING REVENUES $192,839 $130,742 $387,845 $227,277
-------- -------- -------- --------
OPERATING EXPENSES:
Fuel 46,848 47,207 106,753 75,787
Purchased Power 80,485 22,455 162,177 37,348
Other Operation 25,355 15,751 51,111 36,055
Maintenance 7,046 5,045 11,608 9,907
Depreciation and Amortiza tion 11,529 11,292 23,300 22,533
Taxes Other Than Federal Income Taxes 6,775 6,653 12,813 11,616
Federal Income Taxes 2,373 5,401 2,263 7,312
----- ----- ----- -----
TOTAL OPERATING EXPENSES 180,411 113,804 370,025 200,558
------- ------- ------- -------
OPERATING INCOME 12,428 16,938 17,820 26,719
NONOPERATING INCOME (LOSS) (553) (3,149) 878 (3,239)
---- ------ --- ------
INCOME BEFORE INTEREST CHARGES 11,875 13,789 18,698 23,480
INTEREST CHARGES 5,742 5,719 11,674 11,577
----- ----- ------ ------
NET INCOME 6,133 8,070 7,024 11,903
PREFERRED STOCK DIVIDEND REQUIREMENTS 26 26 52 52
-- -- -- --
EARNINGS APPLICABLE TO COMMON STOCK $ 6,107 $ 8,044 $ 6,972 $ 11,851
======== ======== ======== =========
STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD $116,247 $112,549 $122,588 $113,242
NET INCOME 6,133 8,070 7,024 11,903
DEDUCTIONS:
Cash Dividends Declared:
Common Stock 7,206 4,500 14,412 9,000
Preferred Stock 26 26 52 52
-- -- -- --
BALANCE AT END OF PERIOD $115,148 $116,093 $115,148 $116,093
======== ======== ======== ========
The common stock of the Company is wholly owned by AEP.
See Notes to Financial Statements beginning on page L-1.
WEST TEXAS UTILITIES COMPANY
BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
ASSETS
------
ELECTRIC UTILITY PLANT:
Production $ 437,880 $ 431,793
Transmission 236,532 235,303
Distribution 424,258 416,587
General 112,139 110,832
Construction Work in Progress 35,156 34,824
------ ------
Total Electric Utility Plant 1,245,965 1,229,339
Accumulated Depreciation and Amortization 531,411 515,041
-------- -------
NET ELECTRIC UTILITY PLANT 714,554 714,298
------- -------
OTHER PROPERTY AND INVESTMENTS 24,100 23,154
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 10,705 20,944
------ ------
CURRENT ASSETS:
Cash and Cash Equivalents 3,982 6,941
Accounts Receivable:
Customers 19,111 36,217
Affiliated Companies 8,271 16,095
Allowance for Uncollectible Accounts (299) (288)
Fuel Inventory - at average cost 14,861 12,174
Materials and Supplies - at average cost 11,099 10,510
Underrecovered Fuel 59,129 68,107
Energy Trading Contracts 37,398 152,174
Prepayments and Other Current Assets 811 851
--- ---
TOTAL CURRENT ASSETS 154,363 302,781
------- -------
REGULATORY ASSETS 19,075 24,808
------ ------
DEFERRED CHARGES 10,188 2,947
------ -----
TOTAL ASSETS $ 932,985 $1,088,932
========== ==========
See Notes to Financial Statements beginning on page L-1.
WEST TEXAS UTILITIES COMPANY
BALANCE SHEETS
(UNAUDITED)
June 30, 2001 December 31, 2000
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - $25 Par Value:
Authorized - 7,800,000 Shares
Outstanding - 5,488,560 Shares $ 137,214 $ 137,214
Paid-in Capital 2,236 2,236
Retained Earnings 115,148 122,588
------- -------
Total Common Shareowner's Equity 254.598 262,038
Cumulative Preferred Stock Not Subject
to Mandatory Redemption 2,482 2,482
Long-term Debt 255,905 255,843
------- -------
TOTAL CAPITALIZATION 512,985 520,363
------- -------
CURRENT LIABILITIES:
Advances from Affiliates 71,953 58,578
Accounts Payable - General 32,073 45,562
Accounts Payable - Affiliated Companies 12,896 42,212
Customer Deposits 4,614 2,659
Taxes Accrued 32,206 18,901
Interest Accrued 3,119 3,717
Energy Trading Contracts 37,083 154,919
Other 8,899 7,906
----- -----
TOTAL CURRENT LIABILITIES 202,839 334,454
------- -------
DEFERRED INCOME TAXES 152,232 157,038
------- -------
DEFERRED INVESTMENT TAX CREDITS 23,416 24,052
------ ------
LONG-TERM ENERGY TRADING CONTRACTS 10,972 20,789
------ ------
REGULATORY LIABILITIES AND DEFERRED CREDITS 30,541 32,236
------ ------
CONTINGENCIES (Note 8)
TOTAL CAPITALIZATION AND LIABILITIES $ 932,985 $1,088,932
========== ==========
See Notes to Financial Statements beginning on page L-1.