File No. 70-9181
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
Amendment No. 1 to
FORM U-1
__________________________________
APPLICATION OR DECLARATION
under the
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
(Name of companies filing this statement
and addresses of principal executive offices)
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
(Name of top registered holding company
parent of each applicant or declarant)
* * *
A. A. Pena, Treasurer
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
John F. Di Lorenzo, Jr., Associate General Counsel
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
<PAGE>
American Electric Power Company, Inc. ("AEP") and American
Electric Power Service Corporation ("AEPSC") hereby amend their
Application on Form U-1 in File No. 70-9181 as follows:
1. By restating ITEM 2. FEES, COMMISSIONS AND EXPENSES to
read as follows:
The expenses of AEP and AEPSC in connection
with the proposed indebtedness, excluding
placement fees estimated not to exceed
$100,000, are estimated not to exceed $10,000,
consisting of expenses to be billed at cost by
AEPSC.
2. By supplying the following financial statements:
Balance Sheets as of December 31, 1997 and Statements of
Income and Retained Earnings, per books and pro forma,
for the 12 months ended December 31, 1997, of AEPSC and
of AEP ant its subsidiaries consolidated, together with
journal entries reflecting the proposed transactions.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused
this Amendment No. 1 to Form U-1 to be signed on their behalf by
the undersigned thereunto duly authorized.
AMERICAN ELECTRIC POWER SERVICE CORPORATION
By /s/ A. A. Pena
Treasurer
AMERICAN ELECTRIC POWER COMPANY, INC.
By /s/ A. A. Pena
Treasurer
Dated: April 20, 1998
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 1
AMERICAN ELECTRIC POWER SERVICE CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
ASSETS
<S> <C> <C> <C>
PROPERTY:
Land . . . . . . . . . . . . . . . . . . . . . . . $ 5,108 $ 5,108
Structures and Improvements. . . . . . . . . . . . 152,469 152,469
Office Furniture and Miscellaneous Equipment . . . 71,577 71,577
Total Property . . . . . . . . . . . . . . . . 229,154 229,154
Accumulated Depreciation and Amortization. . . . . 77,370 77,370
NET PROPERTY . . . . . . . . . . . . . . . . . 151,784 151,784
INVESTMENTS. . . . . . . . . . . . . . . . . . . . . 40,741 40,741
CURRENT ASSETS:
Cash and Cash Equivalents. . . . . . . . . . . . . 725 $10,000 10,725
Accounts Receivable. . . . . . . . . . . . . . . . 89,312 89,312
Prepayments. . . . . . . . . . . . . . . . . . . . 514 514
TOTAL CURRENT ASSETS . . . . . . . . . . . . . 90,551 10,000 100,551
DEFERRED INCOME TAXES. . . . . . . . . . . . . . . . 13,032 13,032
REGULATORY ASSETS. . . . . . . . . . . . . . . . . . 8,607 8,607
DEFERRED CHARGES . . . . . . . . . . . . . . . . . . 2,684 2,684
TOTAL . . . . . . . . . . . . . . . . $307,399 $10,000 $317,399
</TABLE>
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 2
AMERICAN ELECTRIC POWER SERVICE CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITAL STOCK - Authorized, 20,000 Shares
$100 Par Value;
Issued and Outstanding 13,500 Shares . . . . . . . $ 1,350 $ 1,350
LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . 56,100 $ 20,000 76,100
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases . . . . . . . . . 46,363 46,363
Accrued Pension. . . . . . . . . . . . . . . . . . 40,033 40,033
Other. . . . . . . . . . . . . . . . . . . . . . . 26,900 26,900
TOTAL OTHER NONCURRENT LIABILITIES . . . . 113,296 113,296
CURRENT LIABILITIES:
Long-term Debt Due Within One Year . . . . . . . . 15,000 (10,000) 5,000
Accounts Payable . . . . . . . . . . . . . . . . . 52,875 52,875
Accrued Vacation Pay . . . . . . . . . . . . . . . 16,870 16,870
Accrued Payroll. . . . . . . . . . . . . . . . . . 14,962 14,962
Obligations Under Capital Leases . . . . . . . . . 14,111 14,111
Other. . . . . . . . . . . . . . . . . . . . . . . 10,969 10,969
TOTAL CURRENT LIABILITIES. . . . . . . . . . . 124,787 (10,000) 114,787
DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . . 1,054 1,054
DEFERRED AMOUNTS DUE TO AFFILIATES FOR
INCOME TAX BENEFITS. . . . . . . . . . . . . . . . 7,241 7,241
DEFERRED CREDITS . . . . . . . . . . . . . . . . . . 3,571 3,571
TOTAL . . . . . . . . . . . . . . . . $307,399 $ 10,000 $317,399
</TABLE>
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 3
AMERICAN ELECTRIC POWER SERVICE CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit
(in thousands)
<S> <C> <C>
1) Cash and Cash Equivalents . . . . . . . . . . . . . . . . . . . . $20,000
Long-term Debt. . . . . . . . . . . . . . . . . . . . . . . . . $20,000
To record the issuance of $20,000,000 long-term debt.
2) Long-term Debt Due Within One Year. . . . . . . . . . . . . . . . $10,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
</TABLE>
To record the retirement of $10,000,000, 5.29% Notes Payable
to Banks due October 14, 1998 at a price of 100%.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 3A
AMERICAN ELECTRIC POWER SERVICE CORPORATION
STATEMENT OF INCOME AND EXPENSES
TWELVE MONTHS ENDED DECEMBER 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Interest on Long-term Debt @ 6-1/2%* = $1,300
Interest on Notes Payable to Banks @ 5.29% = (529)
Federal Income Taxes @ 35% = (270)
Increase in Billings to Affiliates = 501
</TABLE>
To reflect the pro forma changes in interest charges
associated with the proposed transactions, the
related federal income tax effect and the increase
in billings to affiliated companies.
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 4
AMERICAN ELECTRIC POWER SERVICE CORPORATION
STATEMENT OF INCOME AND EXPENSES
TWELVE MONTHS ENDED MARCH 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
<S> <C> <C> <C>
INCOME:
Services Rendered to Affiliated Companies. . $455,856 $ 501 $456,357
Miscellaneous Income . . . . . . . . . . . . 614 614
TOTAL INCOME. . . . . . . . . . . . . 456,470 501 456,971
EXPENSES:
Salaries and Wages . . . . . . . . . . . . 228,151 228,151
Outside Services Employed. . . . . . . . . 84,671 84,671
Employee Pensions and Benefits . . . . . . 40,471 40,471
Office Supplies and Services . . . . . . . 43,486 43,486
Rents. . . . . . . . . . . . . . . . . . . 28,010 28,010
Taxes Other Than Federal Income Taxes. . . 19,745 19,745
Depreciation and Amortization. . . . . . . 4,006 4,006
Miscellaneous. . . . . . . . . . . . . . . 3,635 3,635
TOTAL EXPENSES. . . . . . . . . . . 452,175 452,175
INCOME BEFORE INTEREST CHARGES AND
FEDERAL INCOME TAXES . . . . . . . . . . . 4,295 501 4,796
INTEREST CHARGES . . . . . . . . . . . . . . 7,377 771 8,148
LOSS BEFORE FEDERAL INCOME TAXES . . . . . . (3,082) (270) (3,352)
FEDERAL INCOME TAX CREDIT. . . . . . . . . . (3,082) (270) (3,352)
NET INCOME . . . . . . . . . . . . . . . . . $ - $ - $ -
</TABLE>
The Pro Forma Adjustments are shown on Page 3A of these Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 5
AMERICAN ELECTRIC POWER COMPANY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
ASSETS
<S> <C> <C>
ELECTRIC UTILITY PLANT:
Production . . . . . . . . . . . . . . . . . . . . $ 9,493,158 $ 9,493,158
Transmission . . . . . . . . . . . . . . . . . . . 3,501,580 3,501,580
Distribution . . . . . . . . . . . . . . . . . . . 4,654,234 4,654,234
General (including mining assets and nuclear fuel) 1,604,671 1,604,671
Construction Work in Progress. . . . . . . . . . . 342,842 342,842
Total Electric Utility Plant . . . . . . . . . 19,596,485 19,596,485
Accumulated Depreciation and Amortization. . . . . 7,963,636 7,963,636
NET ELECTRIC UTILITY PLANT . . . . . . . . . . 11,632,849 11,632,849
OTHER PROPERTY AND INVESTMENTS . . . . . . . . . . . 1,358,810 1,358,810
CURRENT ASSETS:
Cash and Cash Equivalents. . . . . . . . . . . . . 91,481 $10,000 101,481
Accounts Receivable (net). . . . . . . . . . . . . 667,518 667,518
Fuel . . . . . . . . . . . . . . . . . . . . . . . 224,967 224,967
Materials and Supplies . . . . . . . . . . . . . . 263,613 263,613
Accrued Utility Revenues . . . . . . . . . . . . . 189,191 189,191
Prepayments. . . . . . . . . . . . . . . . . . . . 81,366 81,366
TOTAL CURRENT ASSETS . . . . . . . . . . . . . 1,518,136 10,000 1,528,136
REGULATORY ASSETS. . . . . . . . . . . . . . . . . . 1,817,540 1,817,540
DEFERRED CHARGES . . . . . . . . . . . . . . . . . . 288,011 288,011
TOTAL . . . . . . . . . . . . . . . . $16,615,346 $10,000 $16,625,346
</TABLE>
The Pro Forma Adjustments are shown on Page 7 of these Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 6
AMERICAN ELECTRIC POWER COMPANY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C>
CAPITALIZATION:
Common Stock - Par Value $6.50; Shares
Authorized - 300,000,000; Shares Issued -
198,989,981, of which 8,999,992 were held
in the treasury. . . . . . . . . . . . . . . . . $ 1,293,435 $ 1,293,435
Paid-in Capital. . . . . . . . . . . . . . . . . . 1,778,782 1,778,782
Retained Earnings. . . . . . . . . . . . . . . . . 1,605,017 1,605,017
Total Common Shareholders' Equity. . . . . . . 4,677,234 4,677,234
Cumulative Preferred Stocks of Subsidiaries:
Not Subject to Mandatory Redemption. . . . . . . 46,724 46,724
Subject to Mandatory Redemption. . . . . . . . . 127,605 127,605
Long-term Debt . . . . . . . . . . . . . . . . . . 5,129,463 $ 20,000 5,149,463
TOTAL CAPITALIZATION . . . . . . . . . . . . . 9,981,026 20,000 10,001,026
OTHER NONCURRENT LIABILITIES . . . . . . . . . . . . 1,246,537 1,246,537
CURRENT LIABILITIES:
Long-term Debt Due Within One Year . . . . . . . . 294,454 (10,000) 284,454
Short-term Debt. . . . . . . . . . . . . . . . . . 555,075 555,075
Accounts Payable . . . . . . . . . . . . . . . . . 353,256 353,256
Taxes Accrued. . . . . . . . . . . . . . . . . . . 380,771 380,771
Interest Accrued . . . . . . . . . . . . . . . . . 76,361 76,361
Obligations Under Capital Leases . . . . . . . . . 101,089 101,089
Other. . . . . . . . . . . . . . . . . . . . . . . 322,687 322,687
TOTAL CURRENT LIABILITIES. . . . . . . . . . . 2,083,693 (10,000) 2,073,693
DEFERRED INCOME TAXES. . . . . . . . . . . . . . . . 2,560,921 2,560,921
DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . . 376,250 376,250
DEFERRED GAIN ON SALE AND LEASEBACK -
ROCKPORT PLANT UNIT 2. . . . . . . . . . . . . . . 231,320 231,320
DEFERRED CREDITS . . . . . . . . . . . . . . . . . . 135,599 135,599
TOTAL . . . . . . . . . . . . . . . . $16,615,346 $ 10,000 $16,625,346
</TABLE>
The Pro Forma Adjustments are shown on Page 7 of these Financial Statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 7
AMERICAN ELECTRIC POWER COMPANY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit
(in thousand)
<S> <C> <C>
1) Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000
Long-term Debt . . . . . . . . . . . . . . . . . . . . . . . $20,000
To record the issuance of $20,000,000 long-term debt
by American Electric Power Service Corporation.
2) Long-term Debt Due Within One Year . . . . . . . . . . . . . . $10,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
</TABLE>
To record the retirement of $10,000,000, 5.29% Notes
Payable to Banks due October 14, 1998 at a price of
100% by American Electric Power Service Corporation.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 7A
AMERICAN ELECTRIC POWER COMPANY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Interest on Long-term Debt @ 6-1/2%* = $1,300
Interest on Notes Payable to Banks @ 5.29% = (529)
Federal Income Taxes @ 35% = (270)
</TABLE>
To reflect the pro forma changes in interest charges
associated with the proposed transactions and the
related federal income tax effect.
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 8
AMERICAN ELECTRIC POWER COMPANY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
<S> <C> <C> <C>
OPERATING REVENUES . . . . . . . . . . . . . $6,161,368 $6,161,368
OPERATING EXPENSES:
Fuel . . . . . . . . . . . . . . . . . . . 1,627,066 1,627,066
Purchased Power. . . . . . . . . . . . . . 416,266 416,266
Other Operation. . . . . . . . . . . . . . 1,227,368 1,227,368
Maintenance. . . . . . . . . . . . . . . . 483,268 483,268
Depreciation and Amortization. . . . . . . 591,071 591,071
Taxes Other Than Federal Income Taxes. . . 490,595 490,595
Federal Income Taxes . . . . . . . . . . . 341,280 $(270) 341,010
TOTAL OPERATING EXPENSES. . . . . . 5,176,914 (270) 5,176,644
OPERATING INCOME . . . . . . . . . . . . . . 984,454 270 984,724
NONOPERATING INCOME. . . . . . . . . . . . . 59,572 59,572
INCOME BEFORE INTEREST CHARGES AND
PREFERRED DIVIDENDS. . . . . . . . . . . . 1,044,026 270 1,044,296
INTEREST CHARGES . . . . . . . . . . . . . . 405,815 771 406,586
PERFERRED STOCK DIVIDEND REQUIREMENTS
OF SUBSIDIARIES. . . . . . . . . . . . . . 17,831 17,831
INCOME BEFORE EXTRAOORDINARY ITEM. . . . . . 620,380 (501) 619,879
EXTRAORDINARY LOSS - U.K. WINDFALL TAX . . . (109,419) (109,419)
NET INCOME . . . . . . . . . . . . . . . . . $ 510,961 $(501) $ 510,460
AVERAGE NUMBER OF SHARES OUTSTANDING . . . . 189,039 189,039
EARNINGS PER SHARE:
Before Extraordinary Item. . . . . . . . . $3.28 $3.28
Extraordinary Loss . . . . . . . . . . . . (0.58) (0.58)
Net Income . . . . . . . . . . . . . . . . $2.70 $2.70
CASH DIVIDENDS PAID PER SHARE. . . . . . . . $2.40 $2.40
</TABLE>
The Pro Forma Adjustments are shown on Page 7A of these Financial Statements.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 9
AMERICAN ELECTRIC POWER COMPANY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
<CAPTION>
(in thousands)
<S> <C>
BALANCE AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . $1,547,746
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,961
DEDUCTIONS:
Cash Dividends Declared. . . . . . . . . . . . . . . . . . . . . . . 453,453
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
BALANCE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . $1,605,017
</TABLE>
