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Form U-13-60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
American Electric Power Service Corporation
(Exact Name of Reporting Company)
A Subsidiary Service Company
Date of Incorporation December 17, 1937. If not Incorporated,
Date of Organization
State or Sovereign Power under which Incorporated or Organized
New York
Location of Principal Executive Offices of Reporting Company
1 Riverside Plaza, Columbus, Ohio 43215
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
1 Riverside Plaza
Gerald R. Knorr Assistant Controller Columbus, Ohio 43215
(Name) (Title) (Address)
Name of Principal Holding Company under which Reporting Company is
organized:
AMERICAN ELECTRIC POWER COMPANY, INC.
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1
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing.--Rule 94 provides that on or before the first
day of May in each calendar year, each mutual service company and
each subsidiary service company as to which the Commission shall
have made a favorable finding pursuant to Rule 88, and every
service company whose application for approval or declaration
pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instruc-
tions for that form.
2. Number of Copies.--Each annual report shall be filed in dupli-
cate. The company should prepare and retain at least one extra
copy for itself in case correspondence with reference to the
report becomes necessary.
3. Period Covered by Report.--The first report filed by any
company shall cover the period from the date the Uniform System of
Accounts was required to be made effective as to that company
under Rules 82 and 93 to the end of that calendar year. Sub-
sequent reports should cover a calendar year.
4. Report Format.--Reports shall be submitted on the forms pre-
pared by the Commission. If the space provided on any sheet of
such form is inadequate, additional sheets may be inserted of the
same size as a sheet of the form or folded to such size.
5. Money Amounts Displayed.--All money amounts required to be
shown in financial statements may be expressed in whole dollars,
in thousands of dollars or in hundred thousands of dollars, as
appropriate and subject to provisions of Regulation S-X
(S210.3-01(b)).
6. Deficits Displayed.--Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with
corresponding reference in footnotes. (Regulation S-X,
S210.3-01(c)).
7. Major Amendments or Corrections.--Any company desiring to
amend or correct a major omission or error in a report after it
has been filed with the Commission shall submit an amended report
including only those pages, schedules, and entries that are to be
amended or corrected. A cover letter shall be submitted request-
ing the Commission to incorporate the amended report changes and
shall be signed by a duly authorized officer of the company.
8. Definitions.--Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Sub-
sidiary Service Companies, Public Utility Holding Company Act of
1935, as amended February 2, 1979 shall be applicable to words or
terms used specifically within this Form U-13-60.
9. Organization Chart.--The service company shall submit with
each annual report a copy of its current organization chart.
(Cont'd)
1A
INSTRUCTIONS FOR USE OF FORM U-13-60
10. Methods of Allocation.--The service company shall submit with
each annual report a listing of the currently effective methods of
allocation being used by the service company and on file with the
Securities and Exchange Commission pursuant to the Public Utility
Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed.--
The service company shall submit with each annual report a copy of
the annual statement supplied to each associate company in support
of the amount of compensation for use of capital billed during the
calendar year.
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2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Page
Number
Schedule
Description of Schedules and Accounts or Account
Number
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR
DEPRECIATION AND AMORTIZATION
OF SERVICE COMPANY PROPERTY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED
ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILITIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE
COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE
COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE -
ASSOCIATE AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
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3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Number
Description of Reports or Statements
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR USE OF
CAPITAL BILLED 38
SIGNATURE CLAUSE 39
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4
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the company as of December 31 of the current and prior year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
CURRENT PRIOR
(In Thousands)
<C> <S> <C> <C>
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $266,065 $248,898
107 Construction work in progress (Schedule II) -- --
Total Property 266,065 248,898
108 Less accumulated provision for depreciation and
amortization of service company property
(Schedule III) 114,152 92,199
Net Service Company Property 151,913 156,699
INVESTMENTS
123 Investments in associate
companies (Schedule IV) -- --
124 Other investments (Schedule IV) 114,650 87,669
Total Investments 114,650 87,669
CURRENT AND ACCRUED ASSETS
131 Cash 105 --
134 Special deposits 87 99
135 Working funds 271 340
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable 113 111
143 Accounts receivable 299 7,772
144 Accumulated provision for uncollectible
accounts -- --
146 Accounts receivable from associate
companies (Schedule V) 63,152 109,144
152 Fuel stock expenses undistributed (Schedule VI)-- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 1,386 1,030
174 Miscellaneous current and accrued
assets (Schedule VIII) 4,051 --
Total Current and Accrued Assets 69,464 118,496
DEFERRED DEBITS
181 Unamortized debt expense 3,843 4,499
184 Clearing accounts 4 --
186 Miscellaneous deferred debits (Schedule IX) 4,383 5,405
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes 55,870 59,009
Total Deferred Debits 64,100 68,913
TOTAL ASSETS AND OTHER DEBITS $400,127 $431,777
Note: Unamortized Debt Expense includes unamortized loss on reacquired debt of
$3,843,348 at December 31, 1999 and $4,444,619 at December 31, 1998.
</TABLE>
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<TABLE>
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5
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPTIAL AS OF DECEMBER 31
CURRENT PRIOR
(In Thousands)
<C> <S> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ 1,350 $ 1,350
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) -- --
Total Proprietary Capital 1,350 1,350
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 1,100 1,100
224 Other long-term debt (Schedule XII) 60,000 65,000
225 Unamortized premium on long-term debt -- --
226 Unamortized discount on long-term debt-debit -- --
Total Long-term Debt 61,100 66,100
OTHER NONCURRENT LIABILITIES
227 Obligations under capital leases - Noncurrent 47,745 50,947
224.6 Other 91,432 81,125
Total Other Noncurrent Liabilities 139,177 132,072
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 39,900 40,111
232 Accounts payable 11,771 8,268
233 Notes payable to associate companies
(Schedule XIII) -- --
234 Accounts payable to associate companies
(Schedule XIII) 14,813 37,841
236 Taxes accrued 16 5,347
237 Interest accrued 776 399
238 Dividends declared -- --
241 Tax collections payable 457 2,745
242 Miscellaneous current and accrued liabilities
(Schedule XIII) 68,415 74,492
243 Obligations under capital leases - Current 21,144 18,597
Total Current and Accrued Liabilities 157,292 187,800
DEFERRED CREDITS
253 Other deferred credits 9,030 12,196
255 Accumulated deferred investment tax credits 953 1,003
Total Deferred Credits 9,983 13,199
282 ACCUMULATED DEFERRED INCOME TAXES 31,225 31,256
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $400,127 $431,777
Note: Long-term debt includes $2,000,000 due within one year at December 31, 1999
and $5,000,000 at December 31, 1998 (See note 7, Schedule XIV). Other Other
noncurrent liabilities includes amounts due within one year of $849,937 at
December 31, 1999 and $825,635 at December 31, 1998.
</TABLE>
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<TABLE>
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6
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING ADDITIONS OR CHANGES 1/ CLOSE OF
DESCRIPTION OF YEAR SALES YEAR
(In Thousands)
SERVICE COMPANY PROPERTY
<C> <S> <C> <C> <C> <C> <C>
Account
301 ORGANIZATION $ -- $ -- $ -- $ -- $ --
303 MISCELLANEOUS
INTANGIBLE PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS 5,108 -- -- -- 5,108
305 STRUCTURES AND
IMPROVEMENTS 140,719 -- -- -- 140,719
306 LEASEHOLD IMPROVEMENTS 580 -- 580
307 EQUIPMENT 2/ -- -- -- -- --
308 OFFICE FURNITURE AND
EQUIPMENT 1,019 -- -- -- 1,019
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT -- -- -- -- --
310 AIRCRAFT AND AIRPORT
EQUIPMENT -- -- -- -- --
311 OTHER SERVICE COMPANY
PROPERTY 3/ 101,472 17,607 (8,597) 8,157 118,639
SUB-TOTAL 248,898 17,607 (8,597) 8,157 266,065
107 CONSTRUCTION WORK IN
PROGRESS 4/ -- -- -- -- --
TOTAL $248,898 $17,607 $(8,597) $8,157 $266,065
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Transfers of leased property from associate companies.
</TABLE>
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<TABLE>
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7
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE II - CONTINUED
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY
SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND
THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE AT
SUBACCOUNT DESCRIPTION ADDITIONS CLOSE OF YEAR
<S> <C>
None
</TABLE>
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<TABLE>
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8
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY PROPERTY
BALANCE AT ADDITIONS OTHER CHANGES BALANCE AT
DESCRIPTION BEGINNING CHARGED RETIREMENTS ADD (DEDUCT) CLOSE OF
OF YEAR TO 1/ YEAR
ACCT. 403/404
Account (In Thousands)
<C> <S> <C> <C> <C> <C> <C>
301 ORGANIZATION $ -- $ -- $ -- $ -- $ --
303 MISCELLANEOUS
INTANGIBLE
PLANT -- -- -- -- --
304 LAND AND LAND
RIGHTS -- -- -- -- --
305 STRUCTURES AND
IMPROVEMENTS 59,656 3,960 -- -- 63,616
306 LEASEHOLD
IMPROVEMENTS 322 135 -- -- 457
307 EQUIPMENT -- -- -- -- --
308 OFFICE
FURNITURE AND
FIXTURES 309 37 -- -- 346
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIPMENT -- -- -- -- --
310 AIRCRAFT AND
AIRPORT EQUIPMENT -- -- -- -- --
311 OTHER SERVICE
COMPANY PROPERTY 31,912 17,821 -- -- 49,733
TOTAL $92,199 $21,953 $ -0- $ -0- $114,152
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Not Applicable
</TABLE>
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<TABLE>
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9
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each
investment separately.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
(In Thousands)
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES
None
<S> <C> <C>
ACCOUNT 124 - OTHER INVESTMENTS
Cash Surrender Value of Life
Insurance Policies (net of policy
loans and accrued interest) $11,058 $ 11,977
Umbrella Trust 40,858 64,755
Notes Receivable Constructive
Marketing Program 168 135
Other Investments 1991-1996
COLI Tax & Interest 35,585 37,783
Sub-Total Other Investments 87,669 114,650
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
TOTAL $87,669 $114,650
</TABLE>
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<TABLE>
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10
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided
accommodation or convenience payments for associate companies, a
separate listing of total payments for each associate company by
subaccount should be provided.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM (In Thousands)
ASSOCIATE COMPANIES
<S> <C> <C>
Associate Companies
AEP Communications, Inc. $ 53 $ 41
AEP Communications, LLC 725 1,020
AEP Delaware Investments Co.II (formerly AEP
Resources Delaware, Inc.) 1 3
AEP Energy Management, LLC -- 195
AEP Energy Services, Inc. 939 --
AEP Generating Company 353 (4)
AEP Investments, Inc. 7 111
AEP Pushan Power, LDC 25 137
AEP Resources, Inc. 1,006 1,004
AEP Resources Australia Holdings Pty Ltd -- 148
AEP Resources Australia Pty., Ltd. -- 3
AEP Resources Gas Holding Company 41 634
AEP Resources International, Limited 4 10
AEP Resources Limited 69 246
AEP Resources Project Management Company, Ltd. 1 --
AEP Resources Service Company 227 363
AEP Resources Ventures, Inc. 1 --
AEPR Global Investments B.V. 1 1
American Electric Power Company, Inc. 1,577 4,626
Appalachian Power Company 21,707 2,405
Appalachian/Ohio Power Joint Account (Amos) 7,482 13,412
Appalachian/Ohio Power Joint Account (Sporn) 3,418 4,234
Blackhawk Coal Company/Price
River Coal Company, Inc. 134 138
Cardinal Operating Company 318 503
Cedar Coal Co. -- (13)
Central Appalachian Coal Company 3 3
Central Coal Company 3 4
Central Ohio Coal Company 261 296
Central Operating Company 14 --
Columbus Southern Power Company 24,650 3,805
Conesville Coal Preparation Company 175 200
Indiana Franklin Realty, Inc. -- 1
Indiana Michigan Power Company 24,072 13,907
Indiana Michigan Power/AEP Generating Joint
Account (Rockport) 930 1,960
Indiana Michigan Power
Company-Water Transportation 1,378 1,941
Jefferson Island Storage & Hub -- 50
Kentucky Power Company 3,901 4,860
SUB-TOTAL 93,476 56,244
(Cont'd)
10A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided
accommodation or convenience payments for associate companies, a
separate listing of total payments for each associate company by
subaccount should be provided.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM (In Thousands)
ASSOCIATE COMPANIES
Sub-Total Brought Forward 93,476 56,244
Kingsport Power Company 755 781
LIG Chemical Company -- 1
LIG Liquids Company, L.L.C. 7 65
Louisana Interstate Gas Company, L.L.C. 10 130
Ohio Power Company 12,023 2,408
Ohio Power Company-Cook Coal Terminal 516 744
Ohio Power Company (Gavin) 131 --
Simco Inc. 1 2
Southern Appalachian Coal Company 5 6
Southern Ohio Coal Company - Martinka -- 15
Southern Ohio Coal Company - Meigs 1,419 1,635
Tuscaloose Pipeline Company -- 1
West Virginia Power Company 1 1
Wheeling Power Company 75 503
Windsor Coal Company 388 616
Statutory Subsidiaries
Indiana-Kentucky Electric Corporation 145 --
Ohio Valley Electric Corporation 192 --
TOTAL $109,144 $63,152
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
PAYMENTS
BY COMPANY: (In Thousands)
<S> <C>
Associate Companies
AEP Communications, LLC $ 20
AEP Energy Services, Inc. 387
AEP Generating Company 25
AEP Pushan Power, LDC 6
AEP Resources, Inc. 96
AEP Resources Australia Holdings Pty., Ltd. 17
AEP Resources Gas Holding Company 10
AEP Resources Service Company 325
American Electric Power Company, Inc. 9
Appalachian Power Company 137,744
Appalachian/Ohio Power Joint Account (Amos) 331
Appalachian/Ohio Power Joint Account (Sporn) 221
Blackhawk Coal Company 1
Cardinal Operating Company 299
SUB-TOTAL PAYMENTS 139,491
(Cont'd)
10B
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided
accommodation or convenience payments for associate companies, a
separate listing of total payments for each associate company by
subaccount should be provided.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
(In Thousands)
Sub-Total Brought Forward 139,491
Cedar Coal Co. 9
Central Ohio Coal Company 1,334
Columbus Southern Power Company 185,309
Conesville Coal Preparation Company 4
Indiana Michigan Power Company 84,564
Indiana Michigan Power/AEP Generating
Joint Account (Rockport) 208
Indiana Michigan Power Company-Water Transportation 676
Kentucky Power Company 3,229
Kingsport Power Company 517
LIG Liquids Company, L.L.C. 11
Louisana Interstate Gas Company, L.L.C. 380
Ohio Power Company 40,389
Ohio Power Company - Cook Coal Terminal 33
Southern Appalachian Coal Company 1
Southern Ohio Coal Company-Meigs 3,859
Wheeling Power Company 426
Windsor Coal Company 246
TOTAL PAYMENTS $460,686
FOR:
Interchange Power Pool and Transmission Agreements $363,120
Insurances 42,336
Employee Benefit Plans 51,765
Membership Dues 203
Trustee Fees 1,047
Educational Programs 125
Consulting Fees 352
ECAR Assessment 687
Telephone Services 223
Miscellaneous 828
TOTAL PAYMENTS $460,686
</TABLE>
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<TABLE>
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11
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable
to each associate company. Under the section headed "Summary" listed
below give an overall report of the fuel functions performed by the
service company.
_____________________________________________________________________________________
D E S C R I P T I O N LABOR EXPENSES TOTAL
(In Thousands)
ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED
Associate Companies
<S> <C> <C> <C>
Appalachian Power Company $ 384 $ 263 $ 647
Appalachian/Ohio Power Joint Account (Amos) 200 140 340
Appalachian/Ohio Power Joint Account (Sporn) 94 67 161
Cardinal Operating Company 185 131 316
Columbus Southern Power Company 300 214 514
Indiana Michigan Power Company 122 87 209
Indiana Michigan Power/AEP Generating Joint
Account (Rockport) 371 267 638
Kentucky Power Company 149 103 252
Ohio Power Company 616 446 1,062
TOTAL $2,421 $1,718 $4,139
SUMMARY: Managerial, engineering, technical and administrative services rendered to
AEP System coal mining companies, and coal procurement services rendered to
AEP System generating companies and other similar services.
</TABLE>
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<TABLE>
<CAPTION>
12
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable to
each associate company.
D E S C R I P T I O N LABOR EXPENSES TOTAL
(In Thousands)
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED
Associate Companies
<S> <C> <C> <C>
AEP Energy Services, Inc. $ 105 $ 71 $ 176
AEP Resources Service Company -- 1 1
Appalachian Power Company 867 1,026 1,893
Appalachian/Ohio Power Joint Account (Amos) 2 28 30
Appalachian/Ohio Power Joint Account (Sporn) 5 51 56
Cardinal Operating Company 7 69 76
Columbus Southern Power Company 603 555 1,158
Indiana Michigan Power Company 666 675 1,341
Indiana Michigan Power/AEP Generating
Joint Account (Rockport) 2 28 30
Kentucky Power Company 197 214 411
Kingsport Power Company 46 47 93
Ohio Power Company 1,046 1,098 2,144
Wheeling Power Company 39 30 69
TOTAL $3,585 $3,893 $7,478
</TABLE>
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<TABLE>
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13
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
(In Thousands)
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS
<S> <C> <C>
Supplemental Pension Minimum Liability $-- $3,362
Accrual Adjustments -- 689
TOTAL $-0- $4,051
</TABLE>
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<TABLE>
<CAPTION>
14
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
(In Thousands)
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
<S> <C> <C>
Regulatory Asset-Postretirement Benefits $1,297 $ 973
Regulatory Asset-Postemployment Benefits 2,572 2,478
Regulatory Asset-Taxes (4) 237
Unbilled Charges 1,540 695
TOTAL $5,405 $4,383
</TABLE>
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<TABLE>
<CAPTION>
15
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service corporation
during the year.
D E S C R I P T I O N AMOUNT
(In Thousands)
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
<S> <C>
Transmission & Distribution $1,050
Steam Power 348
Maintenance of Boiler Plant 10
Fuel 47
General Activities 316
Hydro Generation 1
TOTAL $1,772
</TABLE>
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<TABLE>
<CAPTION>
16
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK SHARES VALUE
AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
<C> <S> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 20,000 $100 13,500 $1,350,000
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general
nature of transactions which gave rise to the reported amounts.
D E S C R I P T I O N AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL
None
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
None
TOTAL $ -0-
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing
between compensation for the use of capital owed or net loss remaining from servicing
nonassociates per the General Instructions of the Uniform System of
Accounts. For dividends paid during the year in cash or otherwise, provide rate
percentage, amount of dividend, date declared and date paid.
BALANCE AT NET INCOME BALANCE AT
D E S C R I P T I O N BEGINNING OR DIVIDENDS CLOSE
OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS
None
TOTAL $ -0- $ -0- $ -0- $ -0-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes,
and advances on open account. Names of associate companies from which advances were received
shall be shown under the class and series of obligation column. For Account 224 - Other long-
term debt provide the name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
TERMS OF OBLIG DATE BALANCE AT ADDITIONS DEDUCTIONS BALANCE AT
N A M E O F CLASS & SERIES OF INTEREST AMOUNT BEGINNING 1/ CLOSE
C R E D I T O R OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR OF YEAR
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 - ADVANCES
FROM ASSOCIATE COMPANIES:
Advance on Open Account
American Electric Power
Company, Inc. NONE $ 1,100 $ 1,100 $ -- $ -- $ 1,100
ACCOUNT 224 - OTHER LONG-
TERM DEBT:
Connecticut Bank & Trust Company
(as Trustee),
--Series D Mortgage Notes 12/15/99 9.000 20,000 2,500 -- 2,500 --
--Series E Mortgage Notes 12/15/08 9.600 70,000 52,500 -- 2,500 50,000
Suntrust Bank 10/14/03 6.355 10,000 10,000 -- -- 10,000
Sub-Total 100,000 65,000 -- 5,000 60,000
TOTAL $101,100 $66,100 $ -0- $5,000 $61,100
1/ GIVE AN EXPLANATION OF DEDUCTIONS: Loan payments. See Note 7, Schedule XIV, for further explanation of dates
of maturity.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
18
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current
and accrued liabilities. Items less than $10,000 may be grouped,
showing the number of items in each group.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE
OF YEAR OF YEAR
(In Thousands)
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
None
TOTAL $ -0- $ -0-
(In Thousands)
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
American Electric Power Company, Inc. $ -- $ 12
American Electric Power Service Corporation -- 329
AEP Energy Services, Inc. -- 2,808
Appalachian Power Company 418 (427)
Cedar Coal Co. -- 3
Columbus Southern Power Company 15 (194)
Indiana Michigan Power Company -- 1,177
Kentucky Power Company 4,030 1,244
Ohio Power Company 33,363 9,873
Southern Ohio Coal Company 7 (8)
Miscellaneous - 7 items in 1998; 5 items in 1999 8 (4)
TOTAL $37,841 $14,813
(In Thousands)
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Accrued Vacation Pay $19,805 $23,198
Accrued Incentive Pay 51,056 30,061
Accrued Workers' Compensation 69 148
Payroll Withholdings 273 1,342
Accrued Rent on John E. Dolan
Engineering Laboratory 1,099 835
Accrued Rent on Personal Property 812 221
Accrued Rent for Office Space at Market Square,
Washington, D.C. 60 209
Group Medical Plan 270 --
Real Estate & Personal Property Taxes 846 212
Real Estate Taxes 202 --
Accrued Deferred Compensation Benefits -- 850
Control Payroll Disbursement Accounts -- 775
Control Cash Disbursement Accounts -- 9,937
Severance Accrual -- 627
TOTAL $74,492 $68,415
</TABLE>
<PAGE>
19
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
1. SIGNIFICANT ACCOUNTING POLICIES:
Organization
American Electric Power Service Corporation (the Company
or AEPSC) is a wholly-owned subsidiary of American Electric
Power Company, Inc. (AEP Co., Inc.), a public utility holding
company. The Company provides certain managerial and profes-
sional services including administrative and engineering ser-
vices to the affiliated companies in the American Electric
Power (AEP) System and periodically to unaffiliated companies.
Regulation and Basis of Accounting
As a subsidiary of AEP Co., Inc., AEPSC is subject to
regulation by the Securities and Exchange Commission (SEC)
under the Public Utility Holding Company Act of 1935 (1935
Act).
The Company's accounting conforms to the Uniform System of
Accounts for Mutual and Subsidiary Service Companies
prescribed by the SEC pursuant to the 1935 Act. As a cost-
based rate-regulated entity, AEPSC's financial statements
reflect the actions of regulators that result in the
recognition of revenues and expenses in different time periods
than enterprises that are not rate regulated. In accordance
with Statement of Financial Accounting Standards (SFAS) 71,
"Accounting for the Effects of Certain Types of Regulation"
(SFAS 71), the financial statements include regulatory assets
(deferred expenses) and regulatory liabilities (deferred
revenues) recorded in accordance with regulatory actions to
match expenses and revenues in cost-based rates. Regulatory
assets are expected to be recovered in future periods through
billings to affiliated companies and regulatory liabilities
are expected to reduce future billings. The Company has
reviewed all the evidence currently available and concluded
that it continues to meet the requirements to apply SFAS 71.
Among other things application of SFAS 71 requires that the
Company's billing rates be cost-based regulated. In the event
a portion of the Company's business were to no longer meet
(Cont'd)
19A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
those requirements, net regulatory assets would have to be
written off for that portion of the business and long-term
assets would have to be tested for possible impairment.
Recognized regulatory assets and liabilities are comprised
of the following:
December 31,
1999 1998
Regulatory Assets: (In Thousands)
Unamortized Loss on Reacquired
Debt............................ $3,796 $4,445
Postretirement Benefits........... 973 1,297
Postemployment Benefits........... 2,478 2,572
Total Regulatory Assets......... $7,247 $8,314
Regulatory Liabilities:
Deferred Amounts Due to
Affiliates for Income
Tax Benefits.................... $7,231 $7,291
Deferred Investment Tax Credits... 953 1,004
Total Regulatory Liabilities.... $8,184 $8,295
Use of Estimates
The preparation of these financial statements in conformity
with generally accepted accounting principles requires in
certain instances the use of management's estimates. Actual
results could differ from those estimates.
Income and Expenses
Services rendered to both affiliated and unaffiliated com-
panies are provided at cost. The charges for services include
no compensation for the use of equity capital, all of which is
furnished by AEP Co., Inc. The costs of the services are
determined on a direct charge basis to the extent practicable
and on reasonable bases of proration for indirect costs.
(Cont'd)
19B
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
Income Taxes
The Company follows the liability method of accounting for
income taxes as prescribed by SFAS 109, "Accounting for Income
Taxes." Under the liability method, deferred income taxes are
provided for all temporary differences between the book cost
and tax basis of assets and liabilities which will result in a
future tax consequence. Where the flow-through method of
accounting for temporary differences is reflected in billings,
(that is, deferred taxes are not included in the cost of
determining regulated billings for services), deferred income
taxes are recorded and related regulatory assets and liabilities
are established in accordance with SFAS 71.
Investment Tax Credits
Investment tax credits have been accounted for under the
flow-through method unless they have been deferred in accord-
ance with regulatory treatment. Investment tax credits that
have been deferred are being amortized over the life of the
related investment.
Property
Property is stated at original cost. Land, structures and
structural improvements are generally subject to first
mortgage liens. Depreciation is provided on a straight-
line basis over the estimated useful lives of the property.
Investments
Investments include the cash surrender value of corporate
owned life insurance (COLI) policies net of policy loans and
interest accrued on the loans plus payments of disputed taxes
and interest related to COLI (see Note 2).
Debt
With SEC staff approval, gains and losses on reacquired debt
are deferred and amortized over the term of the replacement
debt.
(Cont'd)
19C
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
Debt issuance expenses are amortized over the term
of the related debt, with the amortization included in
interest charges.
Comprehensive Income
There were no material differences between net income
and comprehensive income.
2. COMMITMENTS AND CONTINGENCIES:
Litigation
The Internal Revenue Service (IRS) agents auditing the
AEP System's consolidated federal income tax returns
requested a ruling from their National Office that certain
interest deductions claimed by the Company relating to
AEP's COLI program should not be allowed. As a result of
a suit filed by the Company in US District Court (discussed
below) this request for ruling was withdrawn by the IRS
agents. Adjustments have been or will be proposed by the
IRS disallowing COLI interest deductions for taxable years
1991-96. A disallowance of the COLI interest deductions
through December 31, 1999 would increase expenses by $38
million which would be billed to affiliated companies.
The Company made payments of taxes and interest
attributable to COLI interest deductions for taxable years
1991-98 to avoid the potential assessment by the IRS of
any additional above market rate interest on the contested
amount. The payments to the IRS are included on the balance
sheet in investments pending the resolution of this matter.
The Company is seeking refunds through litigation of all
amounts paid plus interest.
In order to resolve this issue, the Company filed suit
against the United States in the US District Court for
the Southern District of Ohio in March 1998. In 1999 a U.S.
Tax Court judge decided in the Winn-Dixie Stores v. Commis-
sioner case that a corporate taxpayer's COLI interest
deductions should be disallowed. Notwithstanding the
(Cont'd)
19D
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
decision in Winn-Dixie, management has made no provision for
any possible adverse impact from this matter because it
believes, and has been advised by outside counsel, that it
has a meritorious position and will vigorously pursue its
lawsuit. In the event the resolution of this matter is
unfavorable, the disallowance of taxes and interest attribut-
able to COLI would be recovered through billings to affiliated
companies.
The Company is involved in a number of other legal pro-
ceedings and claims. While management is unable to predict
the outcome of litigation, any potential liability which
may result therefrom would be recoverable from affiliated
companies.
3. BENEFIT PLANS:
The Company and its subsidiaries participate in the AEP
System qualified pension plan, a defined benefit plan which
covers all employees. Net pension costs for the years
ended December 31, 1999 and 1998 were $3.6 million and $6.3
million, respectively.
Postretirement Benefits Other Than Pensions are provided
for retired employees for medical and death benefits under
an AEP System plan. The annual accrued costs were $13.8
million in 1999 and $9.7 million in 1998.
A defined contribution employee savings plan required that
the Company make contributions to this plan totaling $6.2
million in 1999 and $5.5 million in 1998.
4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The carrying amount of cash, accounts receivable and
accounts payable approximates fair value because of the
short-term maturities of these instruments. At December 31,
1999 and 1998 the fair value of long-term debt, excluding
advances from Parent Company, was $69 million and $68 million,
respectively, based on quoted market prices for similar issues
and the current interest rates offered for debt of the same
(Cont'd)
19E
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
remaining maturities. The carrying amount for long-term debt,
excluding advances from Parent Company, was $60 million and
$65 million at December 31, 1999 and 1998, respectively.
The Company is subject to market risk as a result of
changes in interest rates primarily due to short-term and
long-term borrowings used to fund its business operations.
The debt portfolio has fixed and variable interest rates
with terms from one day to nine years at December 31, 1999.
A near term change in interest rates should not materially
affect results of operations or financial position since
the Company would not expect to liquidate its entire debt
portfolio in a one year holding period.
5. FEDERAL INCOME TAXES:
The details of federal income taxes as reported are as
follows:
Year Ended December 31,
1999 1998
(In Thousands)
Current (net)................... $(5,906) $10,842
Deferred (net).................. 3,048 (14,620)
Deferred Investment Tax Credits
(net)........................ (51) (50)
Total Federal Income Tax
Credit..................... $(2,909) $(3,828)
Federal income taxes as reported are different than the pre-
tax book loss multiplied by the statutory federal income tax
rate predominantly due to non-taxable income related to
corporate owned life insurance.
(Cont'd)
19F
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
The following tables show the elements of the net deferred
tax asset and the significant temporary differences giving
rise to such deferrals:
December 31,
1999 1998
(In Thousands)
Deferred Tax Assets..................... $ 55,870 $ 58,748
Deferred Tax Liabilities................ (31,225) (30,995)
Net Deferred Tax Assets............... $ 24,645 $ 27,753
Property Related Temporary Differences.. $(25,104) $(26,367)
Accrued Pension Expense................. 17,809 16,230
Accrued Vacation Pay.................... 7,419 7,017
Deferred and Accrued Compensation....... 9,386 20,170
Amounts Due to Affiliates for
Future Income Tax..................... 2,380 2,471
All Other (net)......................... 12,755 8,232
Net Deferred Tax Assets............... $ 24,645 $ 27,753
The Company joins in the filing of a consolidated federal
income tax return with its affiliates in the AEP System. The
allocation of the AEP System's current consolidated federal
income tax to the System companies is in accordance with SEC
rules under the 1935 Act. These rules permit the allocation
of the benefit of current tax losses utilized to the System
companies giving rise to them in determining their current
tax expense. The tax loss of the System parent company, AEP
Co., Inc., is allocated to its subsidiaries with taxable
income. With the exception of the loss of the parent company,
the method of allocation approximates a separate return result
for each company in the consolidated group.
The AEP System has settled with the IRS all issues from
the audits of the consolidated federal income tax returns
for the years prior to 1991. Returns for the years 1991
through 1996 are presently being audited by the IRS. With
the exception of interest deductions related to AEP's
corporate owned life insurance program, which are discussed
under the heading, Litigation, in Note 2, management is not
aware of any issues for open tax years that upon final res-
olution are expected to have a material adverse effect on
results of operations.
(Cont'd)
19G
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
6. LEASES:
Leases of structures, improvements, office furniture and
miscellaneous equipment are for periods of up to 30 years and
require payments of related property taxes, maintenance and
operating costs. The majority of the leases have purchase or
renewal options and will be renewed or replaced by other
leases.
The components of rental costs are as follows:
December 31,
1999 1998
(In Thousands)
Lease Payments on Operating
Leases......................... $ 14,117 $ 11,373
Amortization of Capital Leases... 22,864 18,183
Interest on Capital Leases....... 6,184 5,058
Total Lease Rental Costs..... $ 43,165 $ 34,614
Property under capital leases and related obligations
recorded on the Balance Sheets are as follows:
December 31,
1999 1998
(In Thousands)
Property Under Capital Leases:
Structures and Improvements.......... $ 11,750 $ 11,750
Office Furniture and Miscellaneous
Equipment.......................... 106,860 89,699
Total Property Under Capital Leases 118,610 101,449
Accumulated Amortization............... 49,721 31,905
Net Property Under Capital
Leases............................. $ 68,889 $ 69,544
Obligations Under Capital Leases: *
Noncurrent Liability................. $ 47,745 $ 50,947
Liability Due Within One Year........ 21,144 18,597
Total Capital Lease Obligations.... $ 68,889 $ 69,544
(Cont'd)
19H
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
* Represents the present value of future minimum lease
payments.
Property under operating leases and related obligations
are not included in the Balance Sheets.
Future minimum lease payments for capital leases consisted
of the following at December 31, 1999:
Capital
Leases
(In Thousands)
2000........................................... $25,661
2001........................................... 20,312
2002........................................... 13,515
2003........................................... 7,565
2004........................................... 3,920
Later Years.................................... 17,975
Total Future Minimum Lease
Rentals...................................... 88,948
Less Estimated Interest Element................ 20,059
Estimated Present Value of Future
Minimum Lease Rentals........................ $68,889
Future minimum lease payments for noncancellable operating
leases were not material at December 31, 1999.
7. LONG-TERM DEBT:
Long-term debt was outstanding as follows:
December 31,
Interest 1999 1998
Rate (In Thousands)
Notes Payable to Banks:
Due October 2003.......... 6.355% $10,000 $10,000
Mortgage Notes:
Series D.................. 9.00% -- 2,500
Series E(a)............... 9.60% 50,000 52,500
Advances from Parent Company. (b) 1,100 1,100
61,100 66,100
Less Portion Due Within One Year 2,000 5,000
Total...................... $59,100 $61,100
(Cont'd)
19I
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the
end of the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
(a) Due in annual installments of $2,000,000 until 2007 and the
balance in December 2008.
(b) The advances from parent company are non-interest bearing and
have no due date.
Long-term debt outstanding at December 31, 1999 is payable
as follows:
Principal
Amount
(In Thousands)
2000...................................... 2,000
2001...................................... 2,000
2002...................................... 2,000
2003...................................... 12,000
2004...................................... 2,000
Later Years............................... 41,100
Total................................... $61,100
The weighted average interest rate for Short-term Debt - Notes
Payable is 6.36% at December 31, 1999.
8. SEGMENT INFORMATION:
Effective December 31, 1998 the Company adopted SFAS 131,
"Disclosure about Segments of an Enterprise and Related
Information". The Company has one reportable segment. The
Company provides certain managerial and professional services
including administrative and engineering services. For the
years ended December 31, 1999, 1998 and 1997, all of the
Company's revenues are derived from managerial and profess-
ional services including administrative and engineering
services in the United States.
<PAGE>
<TABLE>
<CAPTION>
20
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT D E S C R I P T I O N CURRENT YEAR PRIOR YEAR
(In Thousands)
<C> <S> <C> <C>
INCOME
457 Services rendered to associate companies $568,780 $564,888
458 Services rendered to nonassociate
companies 2,319 912
421 Miscellaneous income or loss 259 342
Total Income 571,358 566,142
EXPENSE
920 Salaries and wages 279,819 297,039
921 Office supplies and expenses 62,815 44,433
922 Administrative expense transferred - credit 1 (1,072)
923 Outside services employed 107,153 98,547
924 Property insurance 54 67
925 Injuries and damages 2,376 1,371
926 Employee pensions and benefits 42,704 49,225
928 Regulatory commission expense 1 --
930.1 General advertising expenses 3 --
930.2 Miscellaneous general expenses 586 3,120
931 Rents 39,464 34,199
932 Maintenance of structures and equipment 4,713 4,641
403 Depreciation and amortization expense 4,132 4,151
408 Taxes other than income taxes 19,260 21,114
409 Income taxes (5,906) 13,046
410 Provision for deferred income taxes 40,484 17,955
411 Provision for deferred income taxes - credit (37,436) (32,575)
411.5 Investment tax credit (51) (50)
426.1 Donations 1,419 1,487
426.5 Other deductions 877 1,880
427 Interest on long-term debt 6,547 6,266
430 Interest on debt to associate companies -- --
431 Other interest expense 2,343 1,298
Total Expense 571,358 566,142
Net Income or (Loss) $ -0- $ -0-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
21
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
NAME OF ASSOCIATE COMPANY COSTS COSTS FOR USE OF AMOUNT
CHARGED CHARGED CAPITAL BILLED
457-1 457-2 457-3
(In Thousands)
<S> <C> <C> <C> <C>
Associate Companies
AEP Communications, Inc. $ 481 $ 33 $ 6 $ 520
AEP Communications, LLC 4,952 1,069 18 6,039
AEP Delaware Investments Company II 3 1 -- 4
AEP Energy Management, LLC 674 36 -- 710
AEP Energy Services, Inc. 17,429 1,111 36 18,576
AEP Generating Company 2,790 324 21 3,135
AEP Investments, Inc. 264 42 -- 305
AEP Pushan Power, LDC 429 66 -- 495
AEP Resources, Inc. 10,969 1,574 60 12,603
AEP Resources Australia 1 2 -- 3
AEP Resources Australia Holding (5) 5 -- --
AEP Resources Gas Holding Company 544 37 -- 582
AEP Resources International, Limited 43 3 -- 46
AEP Resources Limited 149 27 1 177
AEP Resources Project Mgmt. Co., Ltd. 4 1 -- 5
AEP Resources Service Company 1,605 271 12 1,888
American Electric Power Company, Inc. 20,559 2,883 77 23,519
Appalachian Power Company 113,385 13,843 702 127,930
Appalachian/Ohio Power Joint
Account (Amos) 11,629 1,328 57 13,014
Appalachian/Ohio Power Joint
Account (Sporn) 6,321 588 32 6,941
Blackhawk Coal Company 8 3 -- 11
Cardinal Operating Company 6,181 758 42 6,981
Cedar Coal Co. 17 3 -- 20
Central Appalachian Coal Company 2 1 -- 3
Central Coal Company 2 -- -- 2
Central Ohio Coal Company 1,538 273 9 1,820
Columbus Southern Power Company 66,962 7,816 413 75,191
Conesville Coal Preparation Company 365 63 3 431
Indiana Michigan Power Company 77,702 8,738 455 86,895
Indiana Michigan Power-
Water Transportation 717 103 5 825
Indiana Michigan Power/AEP Generating
Joint Account (Rockport) 5,905 804 42 6,751
Jefferson Island Storage & Hub L.L.C. 156 9 -- 165
Kentucky Power Company 24,254 3,108 166 27,529
Kingsport Power Company 3,880 448 20 4,348
LIG, Inc. 11 2 -- 12
LIG Chemical Company 5 1 -- 6
LIG Liquids Company, LLC 142 11 -- 153
LIG Pipeline Company 6 -- -- 6
SUB-TOTAL 380,079 45,385 2,177 427,641
(Cont'd)
21A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
NAME OF ASSOCIATE COMPANY COSTS COSTS FOR USE OF AMOUNT
CHARGED CHARGED CAPITAL BILLED
457-1 457-2 457-3
(In Thousands)
Sub-Total Brought Forward 380,079 45,385 2,177 427,641
Louisiana Interstate Gas Company, L.L.C. 195 19 -- 214
Ohio Power Company 115,513 13,271 721 129,505
Ohio Power Company-Cook Coal Terminal 533 99 3 635
Simco Inc. 1 -- -- 1
Southern Appalachian Coal Company 2 1 -- 3
Southern Ohio Coal Company 4,222 639 36 4,897
Tuscaloose Pipeline Company 4 -- -- 4
Wheeling Power Company 3,710 450 20 4,180
Windsor Coal Company 1,447 222 12 1,681
Unbilled Revenues 17 2 -- 19
TOTAL $505,723 $60,088 $2,969 $568,780
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
22
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NAME OF NONASSOCIATE COMPANY COST COST FOR USE TOTAL OR AMOUNT
CHARGED CHARGED CAPITAL COST DEFICIENCY BILLED
458-1 458-2 458-3 458-4
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Ohio Valley Electric Corporation $ 896 $146 $-- $1,042 $-- $1,042
Indiana Kentucky Electric Corporation 811 134 -- 945 -- 945
Geothermal Heat Pump Consortium 185 -- -- 185 -- 185
East Central Area Reliability
Coordination Agreement Power System (6) 121 -- 115 -- 115
Cinergy Corporation 11 10 -- 21 -- 21
Cincinnati Gas & Electric (Zimmer
Service Agreement) 5 1 -- 6 -- 6
Associated Electric Cooperative, Inc. 4 -- -- 4 -- 4
Dayton Power and Light Company (1) 2 -- 1 -- 1
TOTAL $1,905 $414 $-0- $2,319 $-0- $2,319
INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company:
Engineering and computer services.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
23
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL
(In Thousands)
<C> <S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $271,754 $ 6,667 $278,421 $1,356 $ 42 $1,398
921 OFFICE SUPPLIES AND EXPENSES 52,905 9,944 62,849 (85) 51 (34)
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 240 (195) 45 (51) 7 (44)
923 OUTSIDE SERVICES EMPLOYED 99,134 7,636 106,770 327 56 383
924 PROPERTY INSURANCE 1 52 53 -- 1 1
925 INJURIES AND DAMAGES 2,338 25 2,363 13 -- 13
926 EMPLOYEE PENSIONS AND BENEFITS 40,623 1,832 42,455 237 12 249
928 REGULATORY COMMISSION EXPENSE 1 -- 1 -- -- --
930.1 GENERAL ADVERTISING EXPENSES 1 2 3 -- -- --
930.2 MISCELLANEOUS GENERAL EXPENSES 503 83 586 -- -- --
931 RENTS 16,378 22,944 39,322 -- 142 142
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 4,713 -- 4,713 -- -- --
403 DEPRECIATION AND AMORTIZATION EXPENSE 157 3,936 4,093 -- 39 39
408 TAXES OTHER THAN INCOME TAXES 16,988 2,147 19,135 108 17 125
409 INCOME TAXES (5,906) -- (5,906) -- -- --
410 PROVISION FOR DEFERRED INCOME TAXES 40,484 -- 40,484 -- -- --
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (37,436) -- (37,436) -- -- --
411.5 INVESTMENT TAX CREDIT (51) -- (51) -- -- --
426.1 DONATIONS 1,418 1 1,419 -- -- --
426.5 OTHER DEDUCTIONS 872 5 877 -- -- --
427 INTEREST ON LONG-TERM DEBT 1,494 5,006 6,500 -- 47 47
431 OTHER INTEREST EXPENSE 2,340 3 2,343 -- -- --
INSTRUCTION: Total cost of service will equal for
associate and nonassociate companies the total
amount billed under their separate analysis of
billing schedules.
TOTAL EXPENSES = 508,951 60,088 569,039 1,905 414 2,319
421 MISCELLANEOUS INCOME (259) -- (259) -- -- --
TOTAL EXPENSES = 508,692 60,088 568,780 1,905 414 2,319
COMPENSATION FOR USE OF EQUITY CAPITAL = -- -- -- -- -- --
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= -- -- -- -- -- --
TOTAL COST OF SERVICE = $508,692 $60,088 $568,780 $1,905 $414 $2,319
(Cont'd)
</TABLE>
<TABLE>
<CAPTION>
23A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
TOTAL CHARGES FOR SERVICE
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
(In Thousands)
<S> <C> <C> <C>
920 SALARIES AND WAGES $273,110 $ 6,709 $279,819
921 OFFICE SUPPLIES AND EXPENSES 52,820 9,995 62,815
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 189 (188) 1
923 OUTSIDE SERVICES EMPLOYED 99,461 7,692 107,153
924 PROPERTY INSURANCE 1 53 54
925 INJURIES AND DAMAGES 2,351 25 2,376
926 EMPLOYEE PENSIONS AND BENEFITS 40,860 1,844 42,704
928 REGULATORY COMMISSION EXPENSE 1 -- 1
930.1 GENERAL ADVERTISING EXPENSES 1 2 3
930.2 MISCELLANEOUS GENERAL EXPENSES 503 83 586
931 RENTS 16,378 23,086 39,464
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 4,713 -- 4,713
403 DEPRECIATION AND AMORTIZATION EXPENSE 157 3,975 4,132
408 TAXES OTHER THAN INCOME TAXES 17,096 2,164 19,260
409 INCOME TAXES (5,906) -- (5,906)
410 PROVISION FOR DEFERRED INCOME TAXES 40,484 -- 40,484
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (37,436) -- (37,436)
411.5 INVESTMENT TAX CREDIT (51) -- (51)
426.1 DONATIONS 1,418 1 1,419
426.5 OTHER DEDUCTIONS 872 5 877
427 INTEREST ON LONG-TERM DEBT 1,494 5,053 6,547
431 OTHER INTEREST EXPENSE 2,340 3 2,343
INSTRUCTION: Total cost of service will equal for
associate and nonassociate companies the total
amount billed under their separate analysis of
billing schedules.
TOTAL EXPENSES = 510,856 60,502 571,358
421 MISCELLANEOUS INCOME (259) -- (259)
TOTAL EXPENSES = 510,597 60,502 571,099
COMPENSATION FOR USE OF EQUITY CAPITAL = -- -- --
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= -- -- --
TOTAL COST OF SERVICE = $510,597 $60,502 $571,099
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
24
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
CORPORATE CORPORATE
D E S C R I P T I O N O F I T E M S TOTAL ACCOUNTING CONSUMER COMMUNI- DEVELOP-
AMOUNT OVERHEAD & CONTROLLER SERVICES CATIONS MENT
(In Thousands)
<C> <S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $279,819 $ 6,626 $ 12,968 $31,218 $2,993 $10,887
921 OFFICE SUPPLIES AND EXPENSES 62,815 8,542 707 5,667 1,616 2,413
922 ADMINISTRATIVE EXPENSE TRANSFERRED -
CREDIT 1 (188) 20 23 9 39
923 OUTSIDE SERVICES EMPLOYED 107,153 7,321 2,045 4,904 423 1,671
924 PROPERTY INSURANCE 54 53 -- -- -- --
925 INJURIES AND DAMAGES 2,376 25 112 243 29 71
926 EMPLOYEE PENSIONS AND BENEFITS 42,704 1,844 2,705 4,778 529 1,785
928 REGULATORY COMMISSION EXPENSE 1 -- -- -- -- --
930.1 GENERAL ADVERTISING EXPENSES 3 2 -- -- 1 --
930.2 MISCELLANEOUS GENERAL EXPENSES 586 83 48 63 4 --
931 RENTS 39,464 6,085 1,543 8,015 395 293
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 4,713 -- -- -- -- --
403 DEPRECIATION AND AMORTIZATION EXPENSE 4,132 3,961 -- -- -- --
408 TAXES OTHER THAN INCOME TAXES 19,260 2,024 1,272 2,435 220 494
409 INCOME TAXES (5,906) -- -- -- -- --
410 PROVISION FOR DEFERRED INCOME TAXES 40,484 -- -- -- -- --
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (37,436) -- -- -- -- --
411.5 INVESTMENT TAX CREDIT (51) -- -- -- -- --
426.1 DONATIONS 1,419 1 -- 1 3 --
426.5 OTHER DEDUCTIONS 877 -- 5 8 6 3
427 INTEREST ON LONG-TERM DEBT 6,547 5,911 -- -- -- --
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES -- --
431 OTHER INTEREST EXPENSE 2,343 3 -- -- -- --
INSTRUCTION: Indicate each department or
service function. (see Instruction 01-3
General Structure of Accounting System:
Uniform System of Accounts)
TOTAL EXPENSES = $571,358 $42,293 $21,425 $57,355 $6,228 $17,656
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
25
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
D E P A R T M E N T O R S E R V I C E F U N C T I O N
CORPORATE ENERGY ENERGY ENERGY ENERGY ENERGY ENVIRON-
ACCOUNT PLANNING & CORPORATE DELIVERY DISTRI- PRICING & SERV. & TRANS- MENTAL EXECUTIVE FINANCE &
NUMBER BUDGETING SERVICES SUPPORT BUTION REG. SVCS. PWR. MKT. MISSION SERVICES GROUP TREASURER
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 $2,712 $ 4,544 $10,418 $ 7,542 $1,888 $36,562 $15,928 $4,087 $10,151 $2,560
921 87 13,632 1,694 1,263 653 2,049 1,338 288 2,470 656
922
7 (265) 24 5 7 19 10 17 41 9
923 1,703 (270) 1,108 1,950 3,266 922 2,371 (297) 21,621 1,165
924 -- -- -- 1 -- -- -- -- -- --
925 28 16 114 106 17 84 171 34 102 27
926 1,148 751 1,514 860 1,209 1,951 1,904 561 1,918 1,246
928 -- -- -- -- -- -- -- -- 1 --
930.1 -- -- -- -- -- -- -- -- -- --
930.2 -- -- 33 4 -- -- 46 15 57 144
931 517 597 4,943 673 58 1,377 1,920 367 3,128 78
932 -- 4,713 -- -- -- -- -- -- -- --
403 -- 156 -- -- -- -- -- -- -- --
408 241 1,895 773 523 128 627 1,165 213 615 201
409 -- -- -- -- -- -- -- -- -- --
410 -- -- -- -- -- -- -- -- -- --
411
-- -- -- -- -- -- -- -- -- --
411.5 -- -- -- -- -- -- -- -- -- --
426.1 -- -- -- -- -- -- -- -- 1,185 --
426.5 -- 6 1 20 (7) -- -- 1 823 --
427 -- -- -- -- -- -- -- -- -- 636
430
431 -- -- -- -- -- -- -- -- -- 2,336
$6,443 $25,775 $20,622 $12,947 $7,219 $43,591 $24,853 $5,286 $42,112 $9,058
</TABLE>
<TABLE>
<CAPTION>
(Cont'd)
<PAGE>
25A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
D E P A R T M E N T O R S E R V I C E F U N C T I O N
FOSSIL GENERA- INFORMA- POWER
ACCOUNT & HYDRO FUEL TION HUMAN TION TECH- INTERNAL NUCLEAR GENERATION
NUMBER PRODUCTION SUPPLY PROJECTS RESOURCES NOLOGY AUDITS LEGAL GENERATION ENGINEERING
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 $4,036 $3,113 $2,320 $13,233 $33,677 $2,688 $3,582 $(117) $22,404
921 453 296 100 4,101 9,118 139 762 294 1,359
922
8 5 10 25 77 7 12 1 48
923 284 179 704 1,599 47,728 39 1,010 40 4,873
924 -- -- -- -- -- -- -- -- --
925 31 33 21 404 258 21 34 2 132
926 686 1,194 238 3,309 4,017 397 1,045 46 1,971
928 -- -- -- -- -- -- -- -- --
930.1 -- -- -- -- -- -- - -- --
930.2 -- 6 -- 23 6 -- 50 -- 1
931 312 153 16 2,382 2,066 146 181 26 1,444
932 -- -- -- -- -- -- -- -- --
403 -- -- -- -- -- -- -- -- --
408 332 263 120 1,132 2,434 185 201 (2) 1,229
409 -- -- -- -- -- -- -- -- --
410 -- -- -- -- -- -- -- -- --
411
-- -- -- -- -- -- -- -- --
411.5 -- -- -- -- -- -- -- -- --
426.1 -- 64 -- 161 -- -- -- -- --
426.5 4 1 -- 1 2 -- 3 -- --
427 -- -- -- -- -- -- -- -- --
430
431 -- -- -- -- -- -- -- -- --
$6,146 $5,307 $3,529 $26,370 $99,383 $3,622 $6,880 $ 290 $33,461
</TABLE>
<TABLE>
<CAPTION>
(Cont'd)
25B
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
D E P A R T M E N T O R S E R V I C E F U N C T I O N
PROCUREMENT REGIONAL
ACCOUNT & SUPPLY CHAIN SERVICES
NUMBER SERVICES ORGANIZATION TAX
(In Thousands)
<S> <C> <C> <C>
920 $3,507 $28,895 $ 1,397
921 180 2,428 510
922
10 10 11
923 67 (40) 767
924 -- -- --
925 32 215 14
926 560 3,669 869
928 -- -- --
930.1 -- -- --
930.2 -- 1 2
931 412 2,177 160
932 -- -- --
403 -- 15 --
408 258 2,551 (2,269)
409 -- -- (5,906)
410 -- -- 40,484
411
-- -- (37,436)
411.5 -- -- (51)
426.1 -- 4 --
426.5 -- -- --
427 -- -- --
430
431 -- -- 4
$5,026 $39,925 $(1,444)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
26
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each department or TOTAL PARENT OTHER NON END OF
service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
(In Thousands)
<S> <C> <C> <C> <C> <C>
Service Groups (Overheads) $ 6,709 $ 302 $ 6,366 $ 41 394
Accounting & Controller 12,968 562 12,406 -- 284
Consumer Services 31,217 713 30,503 1 774
Corporate Communications 2,993 321 2,672 -- 56
Corporate Development 10,883 969 9,913 1 110
Corporate Planning &
Budgeting 2,712 335 2,377 -- 54
Corporate Services 4,544 170 4,374 -- 46
Energy Delivery Support 10,417 518 9,899 -- 179
Energy Distribution 7,542 288 7,253 1 103
Energy Pricing & Regulatory
Services 1,888 203 1,685 -- 27
Energy Services & Power
Marketing 36,512 108 36,404 -- 132
Energy Transmission 15,928 601 15,260 67 261
Environmental Services 4,087 129 3,925 33 72
Executive Group 10,151 907 8,823 421 149
Finance & Treasurer 2,560 316 2,234 10 50
Fossil & Hydro Production 4,036 305 3,709 22 54
Fuel Supply 3,111 42 2,912 157 61
Generation Projects 2,320 132 2,142 46 38
Human Resources 13,233 1,540 11,693 -- 225
Information Technology 33,676 1,594 32,079 3 379
Internal Audits 2,688 188 2,488 12 44
Legal 3,582 459 3,117 6 49
Nuclear Generation (117) -- (117) -- 2
Power Generation Engineering 22,404 85 21,748 571 227
Procurement & Supply Chain 3,507 230 3,275 2 74
Regional Services Organization 28,871 1 28,866 4 521
Tax 1,397 52 1,345 -- 30
TOTAL $279,819 $11,070 $267,351 $1,398 4,395
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
<S> <C> <C>
3X Corporation NA $ 298
Professional services fees for computer programmers/systems analysts.
ABB Power T&D Company, Inc. NA 928
Professional services fees for creating and installing new software programs
and maintenance.
ABS Consulting, Inc. NA 496
Professional services fees for computer programmers/systems analysts.
AES Acquisition NA 701
Professional services fees for Transmission Geographic Information System.
Abby Lane/Dana Temporaries, Inc. NA 400
Temporary office help.
Accountemps NA 236
Temporary office help.
Advanced Programming Resources, Inc. NA 190
Professional services fees for computer programmers/systems analysts.
Aerotek Inc. NA 242
Temporary office help.
Altra Energy Technologies, Inc. NA 134
Professional services fees for computer software.
America's Registry, Inc. NA 345
Professional services fees for computer programmers/systems analysts.
Analysis Group Economics NA 236
Professional services for AEP Ohio Standard Cost Analysis.
(Cont'd)
27A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Analysts International Corporation NA 492
Professional services fees for computer programmers/systems analysts.
Applied Performance Technologies, Inc. NA 623
Professional services fees for computer programmers/systems analysts.
ASAP Software Express, Inc. NA 1,665
Personal computer software and license fees.
Aspect Telecommunications Corp NA 315
Professional services fees for creating and installing new software programs
and maintenance.
Babcock & Wilcox Construction NA 447
Professional engineering services.
Banctec Service Corp. NA 226
Professional services fees for computer software and license fees.
Beacon Application Services Corporation NA 198
Professional services for management consulting and report writing.
Behavioral Science Technology, Inc. NA 220
Professional consulting services fees for implementation of training
for behavior based safety programs.
BMC Software Inc. NA 127
Professional services fees for computer software and license fees.
Burson-Marsteller NA 409
Professional services fees for merger communications.
CAP Gemini America NA 553
Professional services fees for computer programmers/systems analysts.
(Cont'd)
27B
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
CDI Engineering Group NA 667
Professional services fees for design and drafting services.
CSC Consulting, Inc. NA 119
Professional services fees for computer programmers/systems analysts.
Candle Corporation NA 575
Professional license and maintenance fees for personal computers.
Clark & Weinstock Inc. NA 254
Professional services fees for strategic communications.
Communications Network Inc. NA 104
Professional services fees for communication systems.
Complete Business Solutions, Inc. NA 1,164
Professional services fees for computer programmers/system analysts.
Computer Associates International, Inc. NA 274
Software license and maintenance fees plus update.
Computer Project Resources, Inc. NA 472
Professional services fees for computer programmers/systems analysts.
Compuware Corporation NA 1,904
Software license fees for personal computers and database servers.
Connaissance Consulting LLC NA 214
Professional services fees for software consulting.
ConsulTech An Information Technology Company, Ltd. NA 110
Professional services fees for consulting.
Core Performance Company NA 217
Professional services fees for IT consulting.
(Cont'd)
27C
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Courtney Services Inc. NA 108
Temporary office help.
A. C. Coy Company NA 538
Professional services fees for computer programmers/systems analysts.
Crowe Chizek NA 399
Software license fees for personal computers.
Data Processing Sciences Corporation NA 148
Professional services fees for computer programmers/systems analysts.
Deloitte & Touche LLP NA 1,198
Professional auditing services fees and reimbursable expenses.
Digital Equipment Corporation NA 242
Professional services fees for computer programmers/systems analysts and
maintenance.
Dorsey & Company, Inc. NA 409
Professional services fees for management consulting.
Drayton, Drayton & Lamar, Inc. NA 278
Professional services fees for consulting services.
Electrical Constructors PLL NA 109
Professional electrical contractors.
EPRI NA 661
Electrical/environmental research & development.
Equifax Credit Information Service NA 323
Technical support for modifying software to fit our business.
_____________________________________________________________________________________
(Cont'd)
27D
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Equiserve (formerly First Chicago Trust Co. of New York) NA 882
Transfer agent for employee purchases of AEP common stock.
Everest Data Research, Inc. NA 710
Professional services fees related to database management.
Excel Partners, Inc. NA 200
Professional services fees for computer programmers/systems analysts.
Fleet Business Credit Corporation NA 999
Professional services fees for Oracle software and supplies.
Paul J. Ford & Co. NA 105
Professional services fees for structural analysis.
Gartner Group, Inc. NA 157
Professional services fees for research advisory services.
General Physics Corporation NA 170
Modification of existing network protector text into learning guides.
General Research NA 522
Professional services fees for computer programmers/systems analysts.
Geodata Solutions, Inc. NA 129
Professional services fees for computer programmers/systems analysts.
Gerth Consulting Inc. NA 135
Web based training system and registration.
Thomas Glover Associates, Inc. NA 283
Professional services fees for computer programmers/systems analysts.
(Cont'd)
27E
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Grosh Consulting NA 875
Professional services fees for computer programmers/systems analysts.
Howard Systems International NA 242
Professional services fees for consulting services.
Howrey & Simon NA 257
Legal fees.
Hunton and Williams NA 147
Legal fees.
ICMS International Inc. NA 164
Treasury software for bank interfaces and cash management.
Indecon, Inc. NA 2,117
Professional services fees for computer programmers/systems analysts.
Info USA Marketing, Inc. NA 148
Professional services fees for market research for marketing database.
Information Builders, Inc. NA 109
Computer software maintenance.
Information Industries, Inc. NA 189
Professional services fees for computer programmers/systems analysts.
Interactive Business Systems, Inc. NA 1,356
Professional services fees for computer programmers/systems analysts.
International Business Machines Corporation NA 12,399
Professional services fees for consulting services.
(Cont'd)
27F
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
IS Talent NA 528
Professional services fees for computer programmers/system analysts.
J D Services Inc. NA 149
Professional services fees for industrial design.
KBC Advanced Technologies, Inc. NA 173
Professional engineering services.
Keane Inc. NA 396
Professional services fees for independent validation of Y2K.
Leasetec Corporation NA 291
Secondary vendor for Oracle licensing fees.
Levi, Ray & Shoup Inc. NA 140
Professional services fees for computer program product license.
Linesoft Inc. NA 1,358
Software license fees & development of software.
Logica, Inc. NA 3,080
Consulting services for transformation from a regulated to competive utility.
MSI Consulting International NA 115
Professional services fees for computer software development.
Maliszewski, Ray M. NA 154
Professional consulting fees for FERC expert testimony and merger application.
Maloney, Gerald P. NA 161
Professional consulting fees for FERC expert testimony and merger application.
(Cont'd)
27G
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Manifest Solutions Corporation NA 465
Professional services fees for computer programmers/systems analysts.
Market Strategies, Inc. NA 565
Professional services fees in support of marketing activities.
James Martin & Co. Inc. NA 313
Professional services fees for computer programmers/systems analysts.
Mastech Corporation NA 208
Professional services fees for computer programmers/systems analysts.
Mastering Business Development NA 322
Professional services fees for consulting
Maxim Group NA 1,043
Professional services fees for computer programmers/systems analysts.
Maximation, Inc. NA 1,126
Professional services fees for computer programmers/systems analysts.
Mercer Management Consulting, Inc. NA 2,660
Professional services fees and reimbursable expenses for management
consulting services.
Metro Information Services NA 123
Professional services support/information systems consulting.
Mobile Data Solutions, Inc. NA 404
Software & consulting fees.
National Education Training Group NA 142
Professional services fees for computer programmers/systems analysts.
(Cont'd)
27H
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Necho Systems Corporation NA 109
Software license fees.
Newcourt Financial USA, Inc. NA 1,596
Computer software license fees.
NewMedia, Inc. NA 955
Professional services fees for computer programmers/systems analysts.
Novadigm, Inc. NA 148
Software license fees for server and clients.
Novatec Automations Systems, Inc. NA 267
Professional services fees for computer programmers/systems analysts.
Odyssey Consulting Services, Inc. NA 1,599
Professional services fees for computer programmers/systems analysts.
Office Team NA 151
Temporary office help.
The Ohio State University NA 314
Educational services for management development program.
Optimum Technology NA 141
Professional services fees for computer programmers/systems analysts.
Oracle Corporation NA 385
Technical support fee for client/server applications.
Origin Technology in Business, Inc. NA 1,919
Professional services fees for computer programmers/systems analysts.
(Cont'd)
27I
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
PHB Hagler Bailly Inc. NA 158
Professional services fees for retail market study.
PVS International, Inc. NA 188
Professional services fees for computer programmers/systems analysts.
Palmer, Bill R. NA 144
Professional services fees for mediation.
Paros Business Partners, Inc. NA 214
Professional services fees for computer programmers/systems analysts.
Payco American Corporation NA 1,426
Communications center to process overflow credit calls.
PeopleSoft, Inc. NA 1,052
Software and software support services.
Pinnacle Technology Resources NA 396
Professional services fees for computer programmers/systems analysts.
Pinter Economics, Inc. NA 116
Professional services fees for economic/financial consulting.
Platinum Technology Inc. NA 401
Professional services fees for computer licenses agreement.
Porter, Wright, Morris & Arthur NA 118
Legal fees.
Powerplan Consultants Inc. NA 916
Computer software license fees.
(Cont'd)
27J
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Preferred Technology Solutions, Inc. NA 297
Professional services fees for computer programmers/systems analysts.
PricewaterhouseCoopers LLP NA 2,083
Professional services fees for consulting.
Priority Based Control Engineering NA 104
Professional services for operation of multi-area interconnections.
Productivity Point International NA 184
Professional services fees for computer software instruction.
Professional Network Services NA 124
Professional services fees for computer programmers/systems analysts.
Project Controls, Inc. NA 111
Professional services fees for computer programmers/systems analysts.
The ProTec Group, Inc. NA 994
Professional services fees for computer programmers/systems analysts.
Quick Solutions, Inc. NA 2,441
Professional services fees for computer programmers/systems analysts.
Rapidigm NA 4,461
Professional services fees for computer programmers/systems analysts.
Renaissance Worldwide IT NA 1,458
Professional services fees for computer programmers/systems analysts.
D B Riley, Inc. NA 5,045
Professional engineering services.
(Cont'd)
27K
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Robert Half International Inc. NA 551
Professional services fees for computer software programmers/information
technology specialists.
Romac International NA 167
Temporary office help.
Saga Software, Inc. NA 237
Professional services fees for computer programmers/systems analysts.
Sarcom, Inc. NA 1,220
Hardware and software support for personal computers.
Simpson Thacher & Bartlett NA 349
Legal services.
Smallworld Systems, Inc. NA 124
Licensing fees and software purchases.
Software People Inc. NA 105
Professional services fees for computer systems and maintenance.
Software Support Group NA 1,015
Professional services fees for computer programmers/systems analysts.
Source Services Corporation NA 398
Professional services fees for computer programmers/systems analysts.
Spectrum Solutions, Inc. NA 167
Professional services fees for computer programmers/systems analysts.
Steptoe and Johnson LLP NA 656
Legal services.
(Cont'd)
27L
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
Sterling Commerce NA 134
Software license fees.
Sterling Software, Inc. NA 147
Software license fees and maintenance.
Strategic Resources, Inc. NA 162
Professional services fees for computer programmers/systems analysts.
Swafford Consulting, Inc. NA 175
Professional services fees for computer programmers/systems analysts.
Synergy 2000 Inc. NA 120
Software license fees and maintenance.
Techmate, Inc. NA 885
Professional services fees for computer programmers/systems analysts.
Technology Concepts Inc. NA 134
Professional services fees for computer programmers/systems analysts.
Teksystems NA 292
Professional services fees for end user support.
Michael Thomas, Inc. NA 137
Professional services fees for employee recruiting.
R. Thomas Consulting & Training, Inc. NA 114
Professional services fees for consulting services.
Twenty First Century NA 241
Professional services fees for communication services.
(Cont'd)
27M
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a list, by vendor, of outside services employed. If the
aggregate amounts paid to any one vendor is less than $100,000, only
the aggregate number and total amount of all such payments need be
shown. Provide a brief one line description for the largest invoice
paid to each vendor listed.
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED "NA"=NON AMOUNT
ASSOCIATE
(In Thousands)
UNI Data Systems NA 211
Professional services fees for computer programmers/systems analysts.
UNISYS Corporation NA 1,498
Professional services fees for computer programmers/systems analysts.
Usertech NA 770
Professional services fees and expenses related to employee training.
Vinkad Services, Inc. NA 498
Professional services fees for computer programmers/systems analysts.
1,404 Vendors under $100,000 10,452
TOTAL $107,153
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
28
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit program provided
by the service company. Such listing should be limited to $25,000.
D E S C R I P T I O N AMOUNT
(In Thousands)
<S> <C>
Medical Insurance $15,835
Deferred Compensation Benefits 256
Other Postretirement Benefits 8,092
Savings Plan 6,416
Supplemental Pension Plan (4,739)
Retirement Plan 3,896
Long-Term Disability 1,831
Group Life Insurance 6,395
Dental Insurance 1,546
Employee Educational Assistance 348
Training Administration Expense 206
Miscellaneous 2,622
(Note: Certain line items include trustee fees.)
TOTAL $42,704
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
29
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according
to the nature of the advertising and as defined in the account
definition. If a particular class includes an amount in excess
of $3,000 applicable to a single payee, show separately the name
of the payee and the aggregate amount applicable thereto.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
(In Thousands)
<S> <C>
Dedications, Tours and Openings $1
Miscellaneous 2
TOTAL $3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
30
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321 (b) (2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C.S 441 (b) (2))
shall be separately classified.
D E S C R I P T I O N AMOUNT
(In Thousands)
<S> <C>
Directors' Fees and Expenses $ 47
Dues for Company Memberships 127
Award and Promotional Material 5
Bank Service Charges 209
Conventions, Meetings and Travel Expenses 72
Delivery Fees 5
Cell Phone Expense 2
Telecommunication Upgrade 48
Sales and Use Tax 14
Other General Expenses 57
TOTAL $586
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
31
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents",
classifying such expenses by major groupings of property, as defined
in the account definition of the Uniform System of Accounts.
T Y P E O F P R O P E R T Y AMOUNT
(In Thousands)
<S> <C>
Computers and Data Processing Equipment $21,272
Microwave and Telecommunication Equipment 3,517
Office Furniture and Equipment 1,038
Office and Parking 8,631
Software 4,525
Other 481
TOTAL $39,464
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
32
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts thereof.
Provide a subtotal for each class of tax.
K I N D O F T A X AMOUNT
(In Thousands)
<S> <C>
1. Taxes Other Than U.S. Government Taxes
State Taxes $ (108)
Local Taxes (172)
State Unemployment 323
Real and Personal Property Taxes 1,977
State Franchise Taxes (2,483)
State Single Business Taxes 11
State License/Registration Tax/Fees 7
State Sales and Use Tax 82
Sub-Total Taxes Other Than U.S. Government Taxes (363)
2. U.S. Government Taxes
Social Security 19,352
Federal Unemployment 271
Sub-Total U.S. Government Taxes 19,623
TOTAL $19,260
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
33
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
(In Thousands)
<S> <C> <C>
American Coal Foundation Other $ 4
American Legislative Exchange Council Other 3
American Society of Mechanical Technology Educational 25
Ballet Metropolitan Community 5
Brookings Institution Community 10
Center for Study of American Business Community 15
Center of Science & Industry Community 212
Chamber of Commerce of Union City Community 5
Children's Hospital Foundation Community 28
Citizens for Metro Parks Community 5
Columbus Association for
the Performing Arts Community 10
Columbus Information Technology Center Educational 25
Columbus Metropolitan Club Community 3
Columbus Museum of Art Community 6
Columbus Speech & Hearing Center Community 4
Columbus State Community College Educational 8
Columbus Symphony Orchestra Community 15
Columbus Zoo Community 12
Council of State Governments Community 3
Directions for Youth Community 6
Dresden Sister City, Inc. Community 18
Financial Accounting Foundation Educational 3
Forging New Links Community 3
Fox, Robert K Family Y Community 4
Franklin University Educational 4
Furman University Educational 4
Goodwill Rehabilitation Center Community 5
Grandview Heights High School Educational 10
Harvard University Educational 3
I Know I Can Educational 8
Illinois Institute of Technology Educational 3
International Nuclear Lawyer Association Community 5
John Hopkins University Educational 4
Keystone Center Community 15
King Arts Complex Community 3
Lancaster & Fairfield Community 5
Lancaster Country Club Community 4
Lancaster Festival Inc. Community 4
Leukemia Society of America Community 7
Marshall University Educational 12
Massachusetts Institute of Technology Educational 5
National Academy of Engineering Educational 5
SUB-TOTAL 538
(Cont'd)
33A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
(In Thousands)
Sub-Total Brought Forward 538
National Chamber Litigation Center Inc. Community 5
National Governors Association Community 12
Nature Conservancy Community 5
Ohio Academy of Science Educational 4
Ohio Chamber of Commerce Community 28
Ohio Dominican College Educational 13
Ohio Foundation of
Independent Colleges, Inc. Educational 27
Ohio River Valley Water
Sanitation Commission Community 15
The Ohio State University Educational 84
Ohio University Educational 8
Opera Columbus Community 8
Paving & Illuminating Downtown Community 3
Princeton University Educational 8
Rensselaer Polytechnic
Institute of Virginia Educational 26
Resources for the Future Community 25
Rice University Educational 5
Science & Mathematics Network Educational 5
Science Central Educational 25
Seal of Ohio Girl Scout Council Community 13
Simon Kenton Council Community 58
Transportation Tomorrow Coal Community 25
United Negro College Fund Educational 11
United Way Community 295
University of Michigan Educational 4
Utility Business Education Coalition Educational 8
West Virginia Manufacturer's Association Community 5
Employees and Others (Salaries, salary related
expenses, overheads and other expenses) Community 6
Miscellaneous - 291 items of less than $3,000 Various 150
TOTAL $1,419
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
34
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions", classifying such expenses according to
their nature.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
(In Thousands)
<S> <C>
Cash Contributions: American Legislative Exchange Council $ 7
American Red Cross 1
Athens Area Chamber of Commerce 1
Building to Learn Committee 15
Business Roundtable 117
Business-Government Relations 1
Chamber of Commerce of Boyd 2
Chillicothe Ross Chamber of Commerce 2
Circleville-Pickaway Chamber of Commerce 1
Columbus Forward Together Inc. 10
Columbus Technical Council 1
Conference Board Inc. 15
Consumers United for Rail Equity 10
Dinamo 17
Electric Transportation 35
Elks Country Club 1
Greater Columbus Chamber of Commerce 17
International Television Association 1
Logan-Hocking Chamber of Commerce 1
National Association of Manufacturers 33
National Coal Council 11
National Energy Resources Organization 1
National Hydropower Association 4
National Investor Relations Institute 1
Nature Conservancy 25
Ohio Academy of Science 1
Ohio Business Roundtable 11
Ohio Chamber of Commerce 5
Ohio Public Expenditure Council 4
The Ohio State University 8
Pike County Chamber of Commerce 1
Points of Light Foundation 2
Portsmouth Area Chamber of Commerce 1
Public Relations Society of America 1
Repeal PUHCA Now Coalition 90
Rotary-Athens 1
Southeastern Ohio Regional Council 1
United States Chamber of Commerce 25
University of Rio Grande 1
Western Coal Transportation 1
34A
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions", classifying such expenses according to
their nature.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
(In Thousands)
Service Fees and Others: Accord Group 18
Allen, George W. Co., Inc. 1
AT&T 3
Barbour, Gary C. 53
The Capitol Connection 1
Chariot Transmarketing Systems LTD 1
Congressional Quarterly 1
Council of Better
Business Bureaus Inc. 1
Greater Columbus
Convention Center 1
Hilton 1
Leadership Directories 2
Nauticon Imaging Systems 1
Niagara Mohawk Power Corporation 2
Premiums & Promotions Inc. 1
Quick Messenger Service 1
Temporary Staffing Inc. 2
United States Postal Service 3
US Senate Restaurants 6
Washington Capitals 9
Wright, Lester F. 22
Salaries, salary related
expenses, overheads, and
other expenses Employees and Others 264
TOTAL $877
</TABLE>
<PAGE>
35
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes
regarding the statement of income or any account
thereof. Furnish particulars as to any significant
increase in services rendered or expenses incurred
during the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
See Notes to Financial Statements on Page 19.
<PAGE>
36
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
ORGANIZATION CHART
Chairman, Chief Executive Officer & President
Corporate Development
Energy Services & Power Marketing
Legal
Nuclear Generation
EVP - Corporate Services
Corporate Services
Human Resources
Information Technology
Procurement and Supply Chain Services
EVP - Financial Services
Accounting & Controller
Corporate Planning & Budgeting
Finance & Treasurer
Internal Audits (NOTE)
Tax
EVP - Energy Delivery and Customer Relations
Consumer Services
Corporate Communications
Energy Delivery Support
Energy Distribution
Energy Pricing & Regulatory Services
Energy Transmission
EVP - Power Generation
Environmental Services
Fossil and Hydro Production
Fuel Supply
Generation Projects
Power Generation Engineering
Regional Service Organization
NOTE: Internal Audits reports to the Audit Committee
of the Board of Directors of American Electric
Power Company, Inc. and administratively to the
Executive Vice President - Financial Services
<PAGE>
37
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
METHODS OF ALLOCATION
Service Billings
Kilowatt Hours Sales (KWH) Ratio
Client Load Ratio
Number of Electric Customers Ratio
Number of Client Employees Ratio
Plant Investment Ratio
Level of Construction Ratio
Level of Construction - Production Ratio
Level of Construction - Transmission Ratio
Level of Construction - Distribution Ratio
Tons of Coal Acquired Ratio
Coal Company Combination Ratio
Coal-Fired Kilowatt Hours Generation Ratio
Transmission and Sub-Transmission Pole Miles Ratio
Plant Megawatt Capability Ratio
Number of Stores Transactions Ratio
Data Processing Staff Job Hours Ratio
Fossil Plant Combination Ratio
Number of Invoices Processed Ratio
Total Annual Cost Ratio
Specific Identification Ratio
(based on known and pertinent factors)
Equal Share Ratio
Hydro Kilowatt Hours Generation Ratio
Number of Purchase Orders Written Ratio
Convenience Billings
Specific Identification Ratio
(based on known and pertinent factors)
Asset Ratio
Expense Budget Ratio
Contribution Ratio
Equal Share Ratio
Gross Annual Payroll Dollars Ratio
Coal Production Ratio
Kilowatt Hours Sales (KWH) Ratio
Number of Employees Ratio
Number of Customers Ratio
Number of Vehicles Ratio
<PAGE>
38
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
April 27, 2000
Statement of the Amount of Interest on Borrowed
Capital and Compensation for the Use of Capital
Billed by American Electric Power Service Corporation
(AEPSC) for the Year Ended December 31, 1999
G. R. Knorr - Columbus
AEP System Accounting Managers and Corporate Planning and Budgeting
In accordance with Instruction 01-12 of the Uniform System of Accounts
prescribed by the Securities and Exchange Commission for Mutual Service
Companies and Subsidiary Service Companies under the Public Utility
Holding Company Act of 1935, as amended, this is an annual statement of
the amount of interest on borrowed capital and compensation for the use
of capital billed by AEPSC for the year ended December 31, 1999.
Exhibit A, attached hereto, shows your portion of the interest cost on
capital borrowed for working capital requirements. The method used to
allocate the cost to each System company was the Total Annual Cost Ratio
based on the total direct and indirect charges billed during the prior
year of 1998. The amount shown for each company equals the total charges
billed under Work Order No. 1200 during 1999.
In addition to the interest charges incurred for working capital, AEPSC
billed to all clients, as an indirect cost applicable to administrative
services, a total amount of $5,911,101 of interest cost and debt
expenses related to the mortgage notes on its headquarters building
located in Columbus, Ohio.
All interest charges incurred by AEPSC during 1999 were for borrowings
with unaffiliated companies. No amount was billed by AEPSC during 1999
as compensation for the use of equity capital, all of which is furnished
to AEPSC by its parent, American Electric Power Company, Inc.
G. R. Knorr
GRK rp
Attachment
cc: H. W. Fayne
A. A. Pena
L. V. Assante
I:\RP\U1360\LETTER.WP
Note: The above annual statement was provided to each associate
company within the AEP system. Please refer to the
"Analysis of Billing - Associate Companies" appearing on
page 21 of this report for a listing of the associated
companies billed and the respective amounts (Account
457-3).
<PAGE>
39
ANNUAL REPORT OF AMERICAN ELECTRIC POWER SERVICE CORPORATION
For the Year Ended December 31, 1999
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company
Act of 1935 and the rules and regulations of the Securities and
Exchange Commission issued thereunder, the undersigned company has
duly caused this report to be signed on its behalf by the under-
signed officer thereunto duly authorized.
American Electric Power Service Corporation
(Name of Reporting Company)
By: /s/ Gerald R. Knorr
(Signature of Signing Officer)
Gerald R. Knorr - Assistant Controller
(Printed Name and Title of Signing Officer)
Date: 4/27/00
<TABLE> <S> <C>
<ARTICLE>OPUR2
<MULTIPLIER> 1,000
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 151,913
<TOTAL-INVESTMENTS> 114,650
<TOTAL-CURRENT-ASSETS> 69,464
<TOTAL-DEFERRED-DEBITS> 64,100
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 400,127
<TOTAL-PROPRIETARY-CAPITAL> 1,350
<TOTAL-LONG-TERM-DEBT> 61,100
<NOTES-PAYABLE> 39,900
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 117,392
<TOTAL-DEFERRED-CREDITS> 9,983
<DEFERRED-INCOME-TAX> 31,225
<TOT-LIABIL-AND-PROPRIET-CAP> 400,127
<SERVICES-ASSOCIATE-COMPANIES> 568,780
<SERVICES-NON-ASSOCIATE-COMP> 2,319
<MISC-INCOME-OR-LOSS> 259
<TOTAL-INCOME> 571,358
<SALARIES-AND-WAGES> 279,819
<EMPLOYEE-PENSION-AND-BENEFIT> 42,704
<OTHER-EXPENSES> 248,835
<TOTAL-EXPENSES> 571,358
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 510,856
<TOTAL-EXPENSES-INDIRECT-COST> 60,502
<TOT-EXP-DIRECT-AND-INDIRECT> 571,358
<PERSONNEL-END-OF-YEAR> 4,304
</TABLE>
