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)	October 24, 2007	

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.)	

1 Riverside Plaza, Columbus, OH	43215	
(Address of Principal Executive Offices)	(Zip Code)	

614-716-1000	
(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):

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

 
 
Item 2.02.	Results of Operations and Financial Condition	

 The information, including the exhibit attached hereto, in this Current Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise stated in such filing.

 Attached and incorporated herein by reference as Exhibit 99.1 is a copy of the press release of American Electric Power Company, Inc.’s financial results for the period ending September 30, 2007.

Item 9.01.	Financial Statements and Exhibits	

	(c)	Exhibits  	

	Exhibit 99.1	Press Release dated October 24, 2007	

 

 
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.	

 	By:	/s/ Thomas G. Berkemeyer	
 	Name:	Thomas G. Berkemeyer	
 	Title:	Assistant Secretary	

October 24, 2007

 

 
EXHIBIT INDEX

Exhibit No.	Description	
 	 	
99.1	Press Release dated October 24, 2007	

 

 

MEDIA CONTACT:	ANALYSTS CONTACT:	
Pat D. Hemlepp	Julie Sloat	
Director, Corporate Media Relations	Vice President, Investor Relations	
614/716-1620	& Strategic Initiatives	
 	614/716-2885	

FOR IMMEDIATE RELEASE

AEP REPORTS 2007 THIRD-QUARTER EARNINGS
 	·	2007 third-quarter earnings: $1.02 per share GAAP, $1.16 per share ongoing	
 	·	AEP’s utilities have strong quarter	
 	·	Company once again confirms earnings guidance for 2007	

AMERICAN ELECTRIC POWER
Preliminary, unaudited results
 
 	 	3rd quarter ended Sept. 30	 	9 months ended Sept. 30	 	
 	 	2006	 	2007	 	Variance	 	2006	 	2007	 	Variance	 	
Revenue ($ in billions)	 	 	3.6	 	 	3.8	 	 	0.2	 	 	9.6	 	 	10.1	 	 	0.5	 	
Earnings ($ in millions):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP	 	 	265	 	 	407	 	 	142	 	 	821	 	 	858	 	 	37	 	
Ongoing	 	 	392	 	 	462	 	 	70	 	 	942	 	 	990	 	 	48	 	
EPS ($):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP	 	 	0.67	 	 	1.02	 	 	0.35	 	 	2.08	 	 	2.15	 	 	0.07	 	
Ongoing	 	 	0.99	 	 	1.16	 	 	0.17	 	 	2.39	 	 	2.48	 	 	0.09	 	
EPS based on 394mm shares in Q3 2006, 399mm in Q3 2007, 394mm in 9 mo. 2006 and 398mm in 9 mo. 2007	

 
COLUMBUS, Ohio, Oct. 24, 2007 - American Electric Power (NYSE: AEP) today reported 2007 third-quarter earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $407 million, or $1.02 per share, compared with $265 million, or $0.67 per share, for third-quarter 2006.
 
 Ongoing earnings (earnings excluding special items) for third-quarter 2007 were $462 million, or $1.16 per share, compared with $392 million, or $0.99 per share, for third-quarter 2006.
 
 GAAP earnings were lower than ongoing earnings by $55 million for the quarter, which reflects the effect of a settlement agreement reached with the U.S. Environmental Protection Agency, the U.S. Department of Justice, eight states and 14 environmental organizations resolving all issues related to claims against AEP regarding New Source Review requirements of the Clean Air Act. A full reconciliation of GAAP earnings to ongoing earnings for the quarter and year to date is included in the tables at the end of this news release.

 
 “This was a great quarter for us, one in which our utilities performed well and the other segments of our company made significant contributions,” said Michael G. Morris, chairman, president and chief executive officer of AEP. “Just about every utility category reported improved gross margins, which demonstrates both the strength of our utility organization and our success in regulatory proceedings. And MEMCO, our barge operation, almost matched its earnings from last year’s third quarter despite weaker market conditions.”
 
EARNINGS GUIDANCE
 
AEP once again confirmed its ongoing guidance range for 2007 of between $2.90 and $3.00 per share. In providing ongoing earnings guidance, there could be differences between ongoing earnings and GAAP earnings for matters such as, but not limited to, divestitures or changes in accounting principles. AEP management is not able to estimate the impact, if any, on GAAP earnings of these items. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.
 
SUMMARY ONGOING RESULTS BY SEGMENT
$ in millions except EPS

 	 	 	Q3 06	 	 	Q3 07	 	 	Variance	 	 	9 mo. 06	 	 	9 mo. 07	 	 	Variance	 	
Utility Operations	 	 	378	 	 	443	 	 	65	 	 	902	 	 	934	 	 	32	 	
Ongoing EPS	 	 	0.95	 	 	1.11	 	 	0.16	 	 	2.29	 	 	2.35	 	 	0.06	 	
MEMCO	 	 	19	 	 	18	 	 	(1	)	 	54	 	 	40	 	 	(14	)	
Ongoing EPS	 	 	0.05	 	 	0.05	 	 	0.00	 	 	0.14	 	 	0.09	 	 	(0.05	)	
Generation and Marketing	 	 	4	 	 	3	 	 	(1	)	 	10	 	 	17	 	 	7	 	
Ongoing EPS	 	 	0.01	 	 	0.01	 	 	0.00	 	 	0.02	 	 	0.04	 	 	0.02	 	
All Other	 	 	(9	)	 	(2	)	 	7	 	 	(24	)	 	(1	)	 	23	 	
Ongoing EPS	 	 	(0.02	)	 	(0.01	)	 	0.01	 	 	(0.06	)	 	0.00	 	 	0.06	 	
Ongoing Earnings	 	 	392	 	 	462	 	 	70	 	 	942	 	 	990	 	 	48	 	
Ongoing EPS	 	 	0.99	 	 	1.16	 	 	0.17	 	 	2.39	 	 	2.48	 	 	0.09	 	
EPS based on 394mm shares in Q3 2006, 399mm in Q3 2007, 394mm in 9 mo. 2006 and 398mm in 9 mo. 2007	

Ongoing earnings from Utility Operations increased by $65 million during the third quarter of 2007 when compared with the same period last year. Higher gross margins from retail and off-system sales were somewhat offset by higher interest expense than in the same period in 2006. A change implemented by PJM Interconnection, a regional transmission organization that includes AEP’s transmission assets in the East, decreased Net Transmission Revenue for Utility Operations but increased gross margin for AEP’s utilities in the East and for Off-System Sales. On June 1, 2007, in response to a 2006 order by the Federal Energy Regulatory Commission, PJM implemented marginal-loss dispatch and settlement for its competitive wholesale electric market. Marginal-loss dispatch recognizes the varying delivery costs of transmitting electricity from generation sources to customer locations. Prior to the implementation of marginal-loss dispatch, PJM had used average losses in dispatch and in the calculation of locational marginal prices. Locational marginal prices in PJM now include the real-time impact of transmission losses from points like hubs, generation busses and load zones when moving electricity from generation sources to loads. The loss locational marginal prices represent the marginal cost of losses at each settlement location. This can increase the cost of delivering electricity from plant locations to customers, when compared to the prior method of calculation.

2

 
Ongoing earnings for AEP’s MEMCO barge operations during third-quarter 2007 nearly equaled results for the same period last year. The small decline is the result of higher operating costs brought by the increase in fleet size, which were partially offset by a slight increase in freight revenue in a market experiencing weaker spot-market rates and a continued decrease in northbound freight demand, primarily related to steel and cement imports.
 
Earnings from Generation and Marketing, which includes AEP’s non-regulated generating, marketing and risk management activities, primarily in the Electric Reliability Council of Texas (ERCOT) market area, were slightly lower than in the prior period.
 
Results from All Other, which includes the Parent Company and other investments, improved by $7 million from the prior period. The prior period results included losses from operations at the Plaquemine Cogeneration Facility that was sold to Dow Chemical Co. during fourth-quarter 2006.
 
ONGOING RESULTS FROM UTILITY OPERATIONS
$ in millions except EPS
 
 	 	Q3 06	 	Q3 07	 	Variance	 	9 mo. 06	 	9 mo. 07	 	Variance	 	
East Regulated Integrated Utilities	 	 	511	 	 	565	 	 	54	 	 	1,546	 	 	1,633	 	 	87	 	
Ohio Companies	 	 	580	 	 	650	 	 	70	 	 	1,585	 	 	1,871	 	 	286	 	
West Regulated Integrated Utilities	 	 	321	 	 	336	 	 	15	 	 	789	 	 	765	 	 	(24	)	
Texas Wires	 	 	136	 	 	152	 	 	16	 	 	362	 	 	396	 	 	34	 	
Off-System Sales	 	 	313	 	 	349	 	 	36	 	 	686	 	 	735	 	 	49	 	
Net Transmission Revenue	 	 	69	 	 	11	 	 	(58	)	 	220	 	 	133	 	 	(87	)	
Other Operating Revenue	 	 	123	 	 	124	 	 	1	 	 	378	 	 	413	 	 	35	 	
Total Gross Margin	 	 	2,053	 	 	2,187	 	 	134	 	 	5,566	 	 	5,946	 	 	380	 	
Operations & Maintenance	 	 	(779	)	 	(771	)	 	8	 	 	(2,292	)	 	(2,369	)	 	(77	)	
Depreciation & Amortization	 	 	(374	)	 	(374	)	 	0	 	 	(1,060	)	 	(1,122	)	 	(62	)	
Taxes Other Than Income Taxes	 	 	(183	)	 	(189	)	 	(6	)	 	(557	)	 	(560	)	 	(3	)	
Interest Expense & Preferred Dividend	 	 	(160	)	 	(213	)	 	(53	)	 	(475	)	 	(599	)	 	(124	)	
Other Income & Deductions	 	 	18	 	 	27	 	 	9	 	 	171	 	 	93	 	 	(78	)	
Income Taxes	 	 	(197	)	 	(224	)	 	(27	)	 	(451	)	 	(455	)	 	(4	)	
  Total Utility Operations	 	 	378	 	 	443	 	 	65	 	 	902	 	 	934	 	 	32	 	
  Ongoing EPS	 	 	0.95	 	 	1.11	 	 	0.16	 	 	2.29	 	 	2.35	 	 	0.06	 	
EPS based on 394mm shares in Q3 2006, 399mm in Q3 2007, 394mm in 9 mo. 2006 and 398mm in 9 mo. 2007
 
Retail Sales - Improved results for third-quarter 2007, when compared to the prior period, reflect increased electricity usage - in part because of favorable weather - and the impact of rate changes for the Ohio Companies, Texas Wires and for Appalachian Power, which is included in East Regulated Integrated Utilities. New contracts with municipal and cooperative customers continue to contribute to the improved results.

3

 
Cooling degree days in AEP’s eastern territory during the quarter were 18 percent higher than both normal conditions and the prior period. In AEP’s western territory, cooling degree days were normal and 4 percent lower than the prior period. Weather increased margins by $16 million for third-quarter 2007 when compared to the same period last year.
 
Off-System Sales - Gross margins from Off-System Sales for third-quarter 2007 were $36 million higher than the prior period because of favorable fuel reconciliations in the West, significant contributions from recently acquired gas-fired generation in the East, higher power prices, and higher sales volumes in the East.
 
Net Transmission Revenues - Transmission Revenues for the third quarter of 2007 decreased $58 million from the same period in 2006 primarily because of PJM’s implementation of marginal-loss dispatch and settlement.
 
Other Operating Revenue - Other Operating Revenue was essentially unchanged from period to period, with higher securitization revenue at AEP Texas Central partially offset by lower gains on the sale of emissions allowances.
 
Operations & Maintenance Expense - Lower generation expenses attributed to the decline in Operations & Maintenance Expense when compared with the prior period.
 
Depreciation & Amortization - Depreciation & Amortization expenses were unchanged from the prior period. An increase in regulatory amortizations, primarily related to securitization at AEP Texas Central, and higher depreciable property balances were offset by lower depreciation expenses in Indiana and Virginia. The reduction in Indiana depreciation expenses follows the change in depreciation rates approved in mid-June by the Indiana Utility Regulatory Commission. The lower expenses in Virginia are the result of a base rate case final order received in May and adjustments in the prior period related to a Virginia environmental and reliability order.
 
Interest Expense & Preferred Dividends - Increased long-term debt, higher interest rates on all variable-rate debt and the issuance of securitization bonds at AEP Texas Central led to the increase in Interest Expense from the prior period.
 
Other Income & Deductions - Other Income & Deductions increased in third-quarter 2007 from the prior period because of higher carrying cost income related to Appalachian Power’s environmental and reliability cost deferrals in Virginia, which were partially offset by the elimination of carrying-cost income at AEP Texas Central, which began recovering stranded costs during fourth-quarter 2006.
 
Income Taxes - Income taxes for third-quarter 2007 were higher than in the prior period because of increased taxable income.

4

 
WEBCAST
 
 American Electric Power’s quarterly conference call with financial analysts will be broadcast live over the Internet at 10 a.m. EDT today at http://www.aep.com/go/webcasts . The webcast will include audio of the conference call and visuals of charts and graphics referred to by AEP management during the call. The charts and graphics will be available for download at http://www.aep.com/go/webcasts .
 
The call will be archived on http://www.aep.com/go/webcasts for use by those unable to listen during the live webcast. Archived calls also are available as podcasts.
 
Minimum requirements to listen to broadcast: The Windows Media Player software, free from http://windowsmedia.com/download, and at least a 56Kbps connection to the Internet.
---
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.
 
---
 
AEP’s earnings are prepared in accordance with accounting principles generally accepted in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. AEP’s management believes that the company’s ongoing earnings, or GAAP earnings adjusted for certain items as described in the news release and charts, provide a more meaningful representation of the company’s performance. AEP uses ongoing earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings outlook and results. The company also uses ongoing earnings data internally to measure performance against budget and to report to AEP’s board of directors.
 
---

5

 
This report made by AEP and its Registrant Subsidiaries 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: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity (including AEP’s ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs 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; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter 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. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; AEP’s 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 AEP has 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 and other energy-related commodities; changes in utility regulation, including the potential for new legislation in Ohio and membership in and integration into regional transmission organizations; 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; other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.

6

American Electric Power
Financial Results for 3rd Quarter 2007 Actual vs 3rd Quarter 2006 Actual

 	 	  	 	2006 Actual	 	2007 Actual	 	
 	 	  	 	($ millions)	 	EPS	 	($ millions)	 	EPS	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
UTILITY OPERATIONS:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin:	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	 	East Regulated Integrated Utilities	 	 	511	 	 	 	 	 	565	 	 	 	 	
2	 	 	Ohio Companies	 	 	580	 	 	 	 	 	650	 	 	 	 	
3	 	 	West Regulated Integrated Utilities	 	 	321	 	 	 	 	 	336	 	 	 	 	
4	 	 	Texas Wires	 	 	136	 	 	 	 	 	152	 	 	 	 	
5	 	 	Off-System Sales	 	 	313	 	 	 	 	 	349	 	 	 	 	
6	 	 	Net Transmission Revenue	 	 	69	 	 	 	 	 	11	 	 	 	 	
7	 	 	Other Operating Revenue	 	 	123	 	 	 	 	 	124	 	 	 	 	
8	 	 	Utility Gross Margin	 	 	2,053	 	 	 	 	 	2,187	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
9	 	 	Operations & Maintenance	 	 	(779	)	 	 	 	 	(771	)	 	 	 	
10	 	 	Depreciation & Amortization	 	 	(374	)	 	 	 	 	(374	)	 	 	 	
11	 	 	Taxes Other than Income Taxes	 	 	(183	)	 	 	 	 	(189	)	 	 	 	
12	 	 	Interest Exp & Preferred Dividend	 	 	(160	)	 	 	 	 	(213	)	 	 	 	
13	 	 	Other Income & Deductions	 	 	18	 	 	 	 	 	27	 	 	 	 	
14	 	 	Income Taxes	 	 	(197	)	 	 	 	 	(224	)	 	 	 	
15	 	 	Utility Operations Ongoing Earnings	 	 	378	 	 	0.95	 	 	443	 	 	1.11	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NON-UTILITY OPERATIONS:	 	 	 	 	 	 	 	 	 	 	 	 	 	
16	 	 	MEMCO	 	 	19	 	 	0.05	 	 	18	 	 	0.05	 	
17	 	 	Generation & Marketing	 	 	4	 	 	0.01	 	 	3	 	 	0.01	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18	 	 	Parent & Other Ongoing Earnings	 	 	(9	)	 	(0.02	)	 	(2	)	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
19	 	 	ONGOING EARNINGS	 	 	392	 	 	0.99	 	 	462	 	 	1.16	 	

Note:	For analysis purposes, certain financial statement amounts have been reclassified for this effect on earnings presentation.	

7

American Electric Power

Financial Results for the 3rd Quarter 2007
Reconciliation of Ongoing to Reported Earnings

 	 	2007	 	
 	 	Utility	 	MEMCO	 	Generation and Marketing	 	Parent & All Other	 	Total	 	EPS	 	
 	 	($ millions)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ongoing Earnings	 	 	443	 	 	18	 	 	3	 	 	(2	)	 	462	 	$	1.16	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
New Source Review	 	 	(55	)	 	-	 	 	-	 	 	-	 	 	(55	)	$	(0.14	)	

Total Special Items	 	 	(55	)	 	-	 	 	     	 	 	-	 	 	(55	)	$	(0.14	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reported Earnings	 	 	388	 	 	18	 	 	3	 	 	(2	)	 	407	 	$	1.02	 	

Financial Results for the 3rd Quarter 2006
Reconciliation of Ongoing to Reported Earnings

 	 	2006	 	
 	 	Utility	 	MEMCO	 	Generation and Marketing	 	Parent & All Other	 	Total	 	EPS	 	
 	 	($ millions)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ongoing Earnings	 	 	378	 	 	19	 	 	4	 	 	(9	)	 	392	 	$	0.99	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dispositions:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on Sale of ICE Shares	 	 	-	 	 	-	 	 	-	 	 	9	 	 	9	 	$	0.02	 	
Impairment of Plaquemine Plant	 	 	-	 	 	-	 	 	-	 	 	(136	)	 	(136	)	$	(0.34	)	
 	 	 	   	 	 	    	 	 	    	 	 	   	 	 	   	 	 	    	 	
Total Special Items	 	 	-	 	 	-	 	 	  	 	 	(127	)	 	(127	)	$	(0.32	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reported Earnings	 	 	378	 	 	19	 	 	4	 	 	(136	)	 	265	 	$	0.67	 	

8

American Electric Power
Summary of Selected Sales Data
For Domestic Operations
(Data based on preliminary, unaudited results)

 	 	3 Months Ended September 30,	 	
 	 	2006	 	2007	 	Change	 	
 	 	 	 	 	 	 	 	
ENERGY & DELIVERY SUMMARY	 	 	 	 	 	 	 	
Retail - Domestic Electric (in millions of kWh):	 	 	 	 	 	 	 	
Residential	 	 	13,482	 	 	13,749	 	 	2.0	%	
Commercial	 	 	10,799	 	 	11,164	 	 	3.4	%	
Industrial	 	 	13,468	 	 	14,697	 	 	9.1	%	
Miscellaneous	 	 	719	 	 	686	 	 	-4.6	%	
Total Domestic Retail (a)	 	 	38,468	 	 	40,296	 	 	4.8	%	
 	 	 	 	 	 	 	 	 	 	 	
Wholesale - Domestic Electric (in millions of kWh): (b)	 	 	13,464	 	 	13,493	 	 	0.2	%	
 	 	 	 	 	 	 	 	 	 	 	
Texas Wires Delivery (in millions of kWh):	 	 	7,877	 	 	7,721	 	 	-2.0	%	

EAST REGION WEATHER SUMMARY (in degree days):	 	 	 	 	 	 	 	 	 	 	
Actual  - Heating (c)	 	 	10	 	 	2	 	 	-80.0	%	
- Cooling (d)	 	 	685	 	 	808	 	 	18.0	%	
Normal  - Heating (c)	 	 	 	 	 	7	 	 	-71.4	%*	
- Cooling (d)	 	 	 	 	 	685	 	 	18.0	%*	
 	 	 	 	 	 	 	 	 		 	
PSO/SWEPCo WEATHER SUMMARY (in degree days):	 	 	 	 	 	 	 	 	 	 	
Actual  - Heating (c)	 	 	-	 	 	-	 	 	0.0	%	
- Cooling (d)	 	 	1,468	 	 	1,406	 	 	-4.2	%	
Normal  - Heating (c)	 	 	 	 	 	2	 	 	-100.0	%*	
- Cooling (d)	 	 	 	 	 	1,411	 	 	-0.4	%*	

*	2007 Actual vs. Normal	

(a)	The energy summary represents load supplied by AEP. Delivery of energy by Texas Wires supplied by others is not included.	

(b)	Includes Off-System Sales, Texas Supply, Municipalities and Cooperatives, Unit Power, and Other Wholesale Customers.	

(c)	Heating Degree Days temperature base is 55 degrees	

(d)	Cooling Degree Days temperature base is 65 degrees	

9

American Electric Power
Financial Results for YTD September 2007 Actual vs YTD September 2006 Actual

 	 	  	 	2006 Actual	 	2007 Actual	 	
 	 	  	 	($ millions)	 	EPS	 	($ millions)	 	EPS	 	
 	 	  	 	 	 	 	 	 	 	 	 	
UTILITY OPERATIONS:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin:	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	 	East Regulated Integrated Utilities	 	 	1,546	 	 	 	 	 	1,633	 	 	 	 	
2	 	 	Ohio Companies	 	 	1,585	 	 	 	 	 	1,871	 	 	 	 	
3	 	 	West Regulated Integrated Utilities	 	 	789	 	 	 	 	 	765	 	 	 	 	
4	 	 	Texas Wires	 	 	362	 	 	 	 	 	396	 	 	 	 	
5	 	 	Off-System Sales	 	 	686	 	 	 	 	 	735	 	 	 	 	
6	 	 	Net Transmission Revenue	 	 	220	 	 	 	 	 	133	 	 	 	 	
7	 	 	Other Operating Revenue	 	 	378	 	 	 	 	 	413	 	 	 	 	
8	 	 	Utility Gross Margin	 	 	5,566	 	 	 	 	 	5,946	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
9	 	 	Operations & Maintenance	 	 	(2,292	)	 	 	 	 	(2,369	)	 	 	 	
10	 	 	Depreciation & Amortization	 	 	(1,060	)	 	 	 	 	(1,122	)	 	 	 	
11	 	 	Taxes Other than Income Taxes	 	 	(557	)	 	 	 	 	(560	)	 	 	 	
12	 	 	Interest Exp & Preferred Dividend	 	 	(475	)	 	 	 	 	(599	)	 	 	 	
13	 	 	Other Income & Deductions	 	 	171	 	 	 	 	 	93	 	 	 	 	
14	 	 	Income Taxes	 	 	(451	)	 	 	 	 	(455	)	 	 	 	
15	 	 	Utility Operations Ongoing Earnings	 	 	902	 	 	2.29	 	 	934	 	 	2.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NON-UTILITY OPERATIONS:	 	 	 	 	 	 	 	 	 	 	 	 	 	
16	 	 	MEMCO	 	 	54	 	 	0.14	 	 	40	 	 	0.09	 	
17	 	 	Generation & Marketing	 	 	10	 	 	0.02	 	 	17	 	 	0.04	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18	 	 	Parent & Other Ongoing Earnings	 	 	(24	)	 	(0.06	)	 	(1	)	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
19	 	 	ONGOING EARNINGS	 	 	942	 	 	2.39	 	 	990	 	 	2.48	 	

Note:	For analysis purposes, certain financial statement amounts have been reclassified for this effect on earnings presentation.	

10

American Electric Power

Financial Results for Year-to-Date 2007
Reconciliation of Ongoing to Reported Earnings

 	 	2007	 	
 	 	Utility	 	MEMCO	 	Generation and Marketing	 	Parent & All Other	 	Total	 	EPS	 	
 	 	($ millions)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ongoing Earnings	 	 	934	 	 	40	 	 	17	 	 	(1	)	 	990	 	$	2.48	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dispositions:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on Sale of UK Operations	 	 	-	 	 	-	 	 	-	 	 	2	 	 	2	 	$	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Virginia Re-Regulation SFAS 71	 	 	(79	)	 	-	 	 	-	 	 	-	 	 	(79	)	$	(0.20	)	
New Source Review	 	 	(55	)	 	-	 	 	-	 	 	-	 	 	(55	)	$	(0.13	)	
 	 	 	    	 	 	   	 	 	  	 	 	   	 	 	   	 	 	   	 	
Total Special Items	 	 	(134	)	 	-	 	 	  	 	 	2	 	 	(132	)	$	(0.33	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reported Earnings	 	 	800	 	 	40	 	 	17	 	 	1	 	 	858	 	$	2.15	 	

Financial Results for Year-to-Date 2006
Reconciliation of Ongoing to Reported Earnings

 	 	2006	 	
 	 	Utility	 	MEMCO	 	Generation and Marketing	 	Parent & All Other	 	Total	 	EPS	 	
 	 	($ millions)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ongoing Earnings	 	 	902	 	 	54	 	 	10	 	 	(24	)	 	942	 	$	2.39	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dispositions:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on Sale of UK Operations	 	 	-	 	 	-	 	 	-	 	 	6	 	 	6	 	$	0.01	 	
Gain on Sale of ICE Shares	 	 	-	 	 	-	 	 	-	 	 	9	 	 	9	 	$	0.02	 	
Impairment of Plaquemine Plant	 	 	-	 	 	-	 	 	-	 	 	(136	)	 	(136	)	$	(0.34	)	
 	 	 	   	 	 	   	 	 	   	 	 	   	 	 	   	 	 	   	 	
Total Special Items	 	 	-	 	 	-	 	 	 	 	 	(121	)	 	(121	)	$	(0.31	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reported Earnings	 	 	902	 	 	54	 	 	10	 	 	(145	)	 	821	 	$	2.08	 	

11

American Electric Power
Summary of Selected Sales Data
For Domestic Operations
(Data based on preliminary, unaudited results)

 	 	9 Months Ended September 30,	 	
 	 	2006	 	2007	 	Change	 	
 	 	 	 	 	 	 	 	
ENERGY & DELIVERY SUMMARY	 	 	 	 	 	 	 	
Retail - Domestic Electric (in millions of kWh):	 	 	 	 	 	 	 	
Residential	 	36,010	 	38,015	 	5.6%	 	
Commercial	 	 	29,149	 	 	30,750	 	 	5.5	%	
Industrial	 	 	40,405	 	 	43,110	 	 	6.7	%	
Miscellaneous	 	 	1,991	 	 	1,932	 	 	-3.0	%	
Total Domestic Retail (a)	 	 	107,555	 	 	113,807	 	 	5.8	%	
 	 	 	 	 	 	 	 	 	 	 	
Wholesale - Domestic Electric (in millions of kWh): (b)	 	 	35,132	 	 	31,648	 	 	-9.9	%	
 	 	 	 	 	 	 	 	 	 	 	
Texas Wires Delivery (in millions of kWh):	 	 	20,338	 	 	20,297	 	 	-0.2	%	

EAST REGION WEATHER SUMMARY (in degree days):	 	 	 	 	 	 	 	 	 	 	
Actual  - Heating (c)	 	 	1,573	 	 	2,041	 	 	29.8	%	
- Cooling (d)	 	 	914	 	 	1,189	 	 	30.1	%	
Normal  - Heating (c)	 	 	 	 	 	1,973	 	 	3.4	%*	
- Cooling (d)	 	 	 	 	 	963	 	 	23.5	%*	
 	 	 	 	 	 	 	 	 		 	
PSO/SWEPCo WEATHER SUMMARY (in degree days):	 	 	 	 	 	 	 	 	 	 	
Actual  - Heating (c)	 	 	664	 	 	994	 	 	49.7	%	
- Cooling (d)	 	 	2,325	 	 	2,084	 	 	-10.4	%	
Normal  - Heating (c)	 	 	 	 	 	993	 	 	0.1	%*	
- Cooling (d)	 	 	 	 	 	2,084	 	 	0.0	%*	

*	2007 Actual vs. Normal	

(a)	The energy summary represents load supplied by AEP. Delivery of energy by Texas Wires supplied by others is not included.	

(b)	Includes Off-System Sales, Texas Supply, Municipalities and Cooperatives, Unit Power, and Other Wholesale Customers.	

(c)	Heating Degree Days temperature base is 55 degrees	

(d)	Cooling Degree Days temperature base is 65 degrees	

12