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File No. 70-7167
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
POST-EFFECTIVE AMENDMENT NO. 1
TO
FORM U-1
______________________________
APPLICATION OR DECLARATION
under the
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
* * *
AEP GENERATING COMPANY
1 Riverside Plaza, Columbus, Ohio 43215
APPALACHIAN POWER COMPANY
40 Franklin Road, Roanoke, Virginia 24022
COLUMBUS SOUTHERN POWER COMPANY
215 North Front Street, Columbus, Ohio 43215
INDIANA MICHIGAN POWER COMPANY
One Summit Square, P.O. Box 60, Fort Wayne, Indiana 46802
KENTUCKY POWER COMPANY
1701 Central Avenue, P.O. Box 1428, Ashland, Kentucky 41101
OHIO POWER COMPANY
301 Cleveland Avenue, S.W., Canton, Ohio 44702
(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)
* * *
G. P. Maloney, Executive Vice President
American Electric Power Service Corporation
1 Riverside Plaza, Columbus, Ohio 43215
A. Joseph Dowd, General Counsel
American Electric Power Service Corporation
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
The undersigned companies hereby amend their Application or
Declaration on Form U-1 in File No. 70-7167, as heretofore
amended, by amending and restating the sixth paragraph in Item
1E. Determination of Barge Rates as follows:
"This post-effective amendment is being filed to
comply with recommendations of the Commission staff,
resulting from its field audit of Indiana Michigan
Power Company's ('I&M') River Transportation Division.
Specifically, the Commission staff suggested that I&M
adjust its cost of capital rate authorized in the
original order (HCAR No. 35-24039, March 4, 1986) to
conform the rate to the current market. Therefore, I&M
proposes that the provision for cost of capital
applicable to its investment in the River
Transportation Division would be adjusted on an annual
basis, determined as set forth in Appendix A to the
Barge Transportation Agreement. The overall rate of
return on I&M'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 allowed by the Federal Energy Regulatory
Commission ('FERC') in the last wholesale rate
proceeding involving I&M. In the absence of a FERC
order, the rate of return on common equity would be as
allowed by the Indiana Utility Regulatory Commission in
I&M's most recent retail rate proceeding.
I&M proposes to adjust the capitalization ratio on
an annual basis, using I&M's financial information as
reported at December 31 of the preceding year.
Similarly, the cost of debt and preferred stock would
be updated to reflect the overall cost of debt and
preferred stock at December 31 of the preceding year.
The rate changes resulting from this methodology would
be applied for billing purposes to the 12-month period
commencing on the April 1 subsequent to the applicable
December 31 calculation.
Attached hereto as Appendix A is a chart which
reflects how I&M calculated the current market rate of
return using December 31, 1993 financial information.
Such information would be reported by I&M in its Rule
24 reports. By adjusting the provision for the cost of
capital, the cost of capital rate will be increased
from the 8.82% currently authorized to 9.73%, thus
increasing the fees charged by I&M; however, in the
event the cost of debt or preferred stock or the return
on common equity decreases, the capital rate will
likewise decrease."
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused
this Post-Effective Amendment No. 1 to be signed on their behalf
by the undersigned thereunto duly authorized.
AEP GENERATING COMPANY
APPALACHIAN POWER COMPANY
COLUMBUS SOUTHERN POWER COMPANY
INDIANA MICHIGAN POWER COMPANY
KENTUCKY POWER COMPANY
OHIO POWER COMPANY
By__/s/ G. P. Maloney____
Vice President
Dated: October 4, 1994
70-7167.pe1
Appendix A
<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
Rate of Return on Investments
<CAPTION>
After-Tax
Capitalization Percent Effective Weighted
Component at 12/31/93 of Total Cost Rate of Return
(000)
<S> <C> <C> <C> <C>
Long-Term Debt $ 903,348(a) 44.31% 8.00%(c) 3.55%
Preferred Stock 187,000 9.17% 6.58%(c) 0.60%
Common Stock 948,297(b) 46.51% 12.00%(d) 5.58%
Total $2,038,545 100.00% 9.73%
</TABLE>
(a) Long-Term Debt is net of unamortized debt expense and the unamortized
loss on reacquired debt and excludes the liability for spent nuclear
fuel disposal costs.
(b) Common Equity excludes undistributed subsidiary earnings.
(c) Embedded Cost at 12/31/93.
(d) The rate ordered by the IURC in I&M's 1993 retail rate proceeding.
