<PAGE> File No. 70-5862
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
POST-EFFECTIVE AMENDMENT NO. 8
TO
FORM U-1
______________________________
APPLICATION OR DECLARATION
under the
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
* * *
OHIO POWER COMPANY
301 Cleveland Avenue, S.W., Canton, Ohio 44702
(Name of company filing this statement and
address of principal executive office)
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
(Name of top registered holding company
parent of each applicant or declarant)
* * *
G. P. Maloney, Executive Vice President
American Electric Power Service Corporation
1 Riverside Plaza, Columbus, Ohio 43215
Jeffrey D. Cross, Assistant General Counsel
American Electric Power Service Corporation
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
The undersigned Ohio Power Company ("OPCo") hereby amends
its Application or Declaration on Form U-1 in File No. 70-5862,
as heretofore amended:<PAGE>
By amending and restating the first and third paragraphs
which were added at the end of Item 1 by Post-Effective Amendment
No. 7 as follows:
"This post-effective amendment is being filed to
comply with recommendations of the Commission staff,
resulting from its field audit of OPCo's Cook Coal
Terminal. Specifically, the Commission staff suggested
that OPCo adjust its cost of capital rate authorized in
the original order (HCAR No. 35-22977, June 17, 1983)
to conform the rate to the current market. Therefore,
OPCo proposes that the provision for cost of capital
applicable to its investment in the Cook Coal Terminal
facilities would be adjusted on an annual basis,
determined as set forth in Appendix A to the Coal
Transfer Agreement. The overall rate of return on
OPCo's investment would be subject to adjustment on the
first day of April in each succeeding year based on
changes in the rate of return on common equity most
recently allowed by either (i) the Federal Energy
Regulatory Commission ('FERC') in the last wholesale
rate proceeding involving OPCo or (ii) The Public
Utilities Commission of Ohio in OPCo's most recent
retail rate proceeding. OPCo requests authority to
charge a cost-of-capital component on its investment in
the Trancisco railcar maintenance facility, in which
OPCo has a small investment of approximately $350,000.
OPCo proposes to use this same methodology to calculate
the cost of capital rate associated with its railcar
maintenance facility located at the Cook Coal Terminal
and the Trancisco maintenance facility.
Attached hereto as Appendix A is a chart which
reflects how OPCo calculated the current market rate of
return using December 31, 1993 financial information.
Such information would be reported by OPCo in its Rule
24 reports. By adjusting the provision for the cost of
capital, the cost of capital rate will be reduced from
the 12.3% currently authorized to 10.12%, thus reducing
the fees charged by OPCo."
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned company has duly caused this
Post-Effective Amendment No. 8 to be signed on its behalf by the
undersigned thereunto duly authorized.<PAGE>
OHIO POWER COMPANY
By_/s/ G. P. Maloney_____
Vice President
Dated: July 26, 1995
Appendix A
OHIO POWER COMPANY
COOK COAL TERMINAL
Rate of Return on Investments
<TABLE>
<CAPTION>
After-Tax
Capitalization Percent Effective Weighted
Component at 12/31/94 of Total Cost Rate of Return
(000)
<S> <C> <C> <C> <C>
Long-Term Debt $1,063,241(a) 41.91% 7.54%(c) 3.16%
Preferred Stock 241,240 9.51% 6.40%(c) 0.61%
Common Stock 1,232,681(b) 48.59% 13.07%(d) 6.35%
Total $2,537,162 100.00% 10.73%
</TABLE>
(a) Includes Long-Term Debt due in one-year and is net of unamortized
debt premium and discount, unamortized debt expense, and the
unamortized loss on reacquired debt.
(b) Common Equity includes the premium on preferred stock and excludes
undistributed subsidiary earnings.
(c) Embedded Cost at 12/31/94.
(d) The monthly average rate allowed by the PUCO in 1995 (two months at
the 14.34% rate allowed OPCo in a 1986 retail rate proceeding and the
remaining ten months of the year at the 12.81% allowed in a retail
rate settlement approved in March 1995).<PAGE>
