aep8k120908.htm
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of report (Date of earliest event reported)
|
December
9, 2008
|
|
|
AMERICAN
ELECTRIC POWER COMPANY, INC.
|
(Exact
Name of Registrant as Specified in Its Charter)
1-3525
|
New
York
|
13-4922640
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
APPALACHIAN
POWER COMPANY
|
(Exact
Name of Registrant as Specified in Its Charter)
1-3457
|
Virginia
|
54-0124790
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
COLUMBUS
SOUTHERN POWER COMPANY
|
(Exact
Name of Registrant as Specified in Its Charter)
1-2680
|
Ohio
|
31-4154203
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
INDIANA
MICHIGAN POWER COMPANY
|
(Exact
Name of Registrant as Specified in Its Charter)
1-3570
|
Indiana
|
35-0410455
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
(Exact
Name of Registrant as Specified in Its Charter)
1-6543
|
Ohio
|
31-4271000
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
1
Riverside Plaza, Columbus, OH
|
43215
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
PUBLIC
SERVICE COMPANY OF OKLAHOMA
|
(Exact
Name of Registrant as Specified in Its Charter)
0-343
|
Oklahoma
|
73-0410895
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
SOUTHWESTERN
ELECTRIC POWER COMPANY
|
(Exact
Name of Registrant as Specified in Its Charter)
1-3146
|
Delaware
|
72-0323455
|
(Commission
File Number)
|
(State
or Other Jurisdiction of Incorporation)
|
(IRS
Employer Identification No.)
|
(Registrant's
Telephone Number, Including Area Code)
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction
A.2. below):
[
] Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
] Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
[
]
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
Item
8.01 Other
Events
Reference
is made to page A-61 of the Quarterly Report on Form 10-Q for the Quarter Ended
September 30, 2008 of American Electric Power Company, Inc. (“AEP”), under the
discussion subtitled “Allocation of Off-system Sales Margins” and page H-27
under the discussion subtitled “Allocation of Off-system Sales Margins—Affecting
APCo, CSPCo, I&M, OPCo, PSO and SWEPCo” of the Quarterly Report on Form 10-Q
for the Quarter Ended September 30, 2008 of Appalachian Power Company (“APCo”),
Columbus Power Company (“CSPCo”), Indiana Michigan Power Company (“I&M”),
Ohio Power Company (“OPCo”), Public Service Company of Oklahoma (“PSO”) and
Southwestern Electric Power Company (“SWEPCo”). Kentucky Power Company (“KPCo”),
together with APCo, CSPCo, I&M and OPCo are referred to as the “AEP East
Companies”. AEP Texas Central Company (“TCC”) and AEP Texas North Company
(“TNC”), together with PSO and SWEPCo, are referred to as the “AEP West
Companies”. The following text updates and supplements that
disclosure.
In an
order issued November 26, 2008, the Federal Energy Regulatory Commission
(“FERC”) ruled that AEP should reallocate pre-tax trading margins from
off-system sales between the AEP East Companies and the AEP West Companies
during the period from June 2000 to March 2006 under the System Integration
Agreement. The FERC also directed AEP to issue appropriate refunds, with
accrued interest, within 30 days of the date of the FERC order to the AEP West
Companies.
As a
result of the FERC order and based on preliminary estimates, the AEP East
Companies could be required to transfer to the AEP West Companies up to
approximately $250 million. During the relevant period, the AEP West Companies
were entitled to retain a portion of the off-system sales margins, and were
required to share the remaining portion with their customers. The AEP West
Companies would be entitled to retain up to approximately $99 million of those
transferred amounts ($63 million after-tax). The AEP West Companies will make
filings with their respective public service commissions to determine how the
remaining approximate $151 million should be returned for the benefit of the
ratepayers. AEP will seek a rehearing of this order at FERC.
The
respective amounts that the AEP East Companies would transfer and the AEP West
Companies would receive (and related earnings impact), and the consolidated
impact on net income of AEP, are set forth in the table below.
|
|
|
|
Amounts
(Transferred)/Received Including Interest
|
|
|
Preliminary
Estimated
(Decrease)/Increase
on
Net Income
|
East
Companies
|
|
|
|
(in
millions)
|
APCo
|
|
|
$ |
(77)
|
|
$ |
(47)
|
I&M
|
|
|
|
(48)
|
|
|
(30)
|
OPCo
|
|
|
|
(62)
|
|
|
(39)
|
CSPCo
|
|
|
|
(44)
|
|
|
(28)
|
KPCo
|
|
|
|
(19)
|
|
|
(11)
|
Subtotal
|
|
|
$ |
(250)
|
|
$ |
(155)
|
|
|
|
|
|
|
|
|
West
Companies
|
|
|
|
|
|
|
|
PSO
|
|
|
$ |
72
|
|
$ |
11
|
SWEPCo
|
|
|
|
85
|
|
|
20
|
All
Other
|
|
|
|
93
|
|
|
32
|
Subtotal
|
|
|
$ |
250
|
|
$ |
63
|
|
|
|
|
|
|
|
|
AEP
Consolidated
|
|
|
$ |
0
|
|
$ |
(92)
|
This
report made by AEP contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. Although AEP
believes that its 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:
Electric load and customer growth;
weather conditions, including storms; available sources and costs of, and
transportation for, fuels and the creditworthiness of fuel suppliers and
transporters; availability of generating capacity and the performance of AEP’s
generating plants; the ability to recover regulatory assets and stranded costs
in connection with deregulation; the ability to recover increases in fuel and
other energy costs through regulated or competitive electric rates; the ability
to build or acquire generating capacity when needed at acceptable prices and
terms and to recover those costs through applicable rate cases; new legislation,
litigation and government regulation including requirements for reduced
emissions of sulfur, nitrogen, mercury, carbon and other substances; timing and
resolution of pending and future rate cases, negotiations and other regulatory
decisions (including rate or other recovery for new investments, transmission
service and environmental compliance); resolution of litigation (including
pending Clean Air Act enforcement actions and disputes arising from the
bankruptcy of Enron Corp.); AEP’s ability to constrain its operation and
maintenance costs; AEP’s ability to sell assets at acceptable prices and on
other acceptable terms, including rights to share in earnings derived from the
assets subsequent to their sale; the economic climate and growth in its service
territory and changes in market demand and demographic patterns; inflationary
trends; its 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 and number of participants in the energy trading market;
changes in the financial markets, particularly those affecting the availability
of capital and AEP’s ability to refinance existing debt at attractive rates;
actions of rating agencies, including changes in the ratings of debt; volatility
and changes in markets for electricity, natural gas and other energy-related
commodities; changes in utility regulation,
including membership and integration into regional transmission structures;
accounting pronouncements periodically issued by accounting standard-setting
bodies; the performance of AEP’s pension and other postretirement benefit plans;
prices for power that AEP generates and sells at wholesale; changes in
technology, particularly with respect to new, developing or alternative sources
of generation and other risks and unforeseen events, including wars, the effects
of terrorism (including increased security costs), embargoes and other
catastrophic events.
The registrants expressly disclaim
any obligation to update any forward-looking information.
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
|
AMERICAN
ELECTRIC POWER COMPANY, INC.
|
|
APPALACHIAN
POWER COMPANY
|
|
COLUMBUS
SOUTHERN POWER COMPANY
|
|
INDIANA
MICHIGAN POWER COMPANY
|
|
OHIO
POWER COMPANY
|
|
PUBLIC
SERVICE COMPANY OF OKLAHOMA
|
|
SOUTHWESTERN
ELECTRIC POWER COMPANY
|
|
|
|
|
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By:
|
/s/
Thomas G. Berkemeyer
|
|
Name:
|
Thomas
G. Berkemeyer
|
December
9, 2008