INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 24039
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1995
CONTENTS
Page
Summary of Billings 1
Rate of Return on Investment 2
Annual Tonnage and Equipment Usage 3
Comparison of Barging Rates 4
<PAGE>
<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
SUMMARY OF BILLINGS
BY MONTH, FOR THE QUARTER ENDED December 31, 1995
<CAPTION>
October 1995 November 1995 December 1995
------------------------------ ------------------------------ ------------------------------
Tons Fee Amount Tons Fee Amount Tons Fee Amount
(per ton) (000) (per ton) (000) (per ton) (000)
-------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BARGING SERVICE BILLINGS TO AFFILIATES:
Appalachian Power Company and
Ohio Power Company:
Sporn Plant 253,550 $3.23 $819 220,336 $3.27 $722 213,768 $3.05 $653
Amos Plant 6,478 $1.08 7 22,543 $1.08 24 5,776 $1.33 8
--------- --------- --------- --------- --------- ---------
Total 260,028 $826 242,879 $746 219,544 $661
========= ========= ========= ========= ========= =========
Appalachian Power Company:
Mountaineer Plant 98,970 $1.53 $152 47,472 $1.66 $79 127,744 $1.72 $220
Kanawha River Plant 5,680 $0.66 4 9,985 $0.65 6 35,272 $0.66 23
--------- --------- --------- --------- --------- ---------
Total 104,650 $156 57,457 $85 163,016 $243
========= ========= ========= ========= ========= =========
Indiana Michigan Power Company:
Tanners Creek 29,150 $4.99 $145 70,383 $5.00 $352 92,891 $3.67 $341
========= ========= ========= ========= ========= =========
Indiana Michigan Power Company
and AEP Generating Company:
Rockport Plant 1,037,779 $1.67 $1,733 978,242 $1.67 $1,634 942,336 $1.67 $1,573
========= ========= ========= ========= ========= =========
Ohio Power Company:
Cardinal Plant (Unit 1) 131,687 $0.63 $83 157,464 $0.62 $98 87,144 $0.61 $53
Gavin Plant 5,104 $0.57 3 6,542 $0.57 4 14,459 $1.31 19
Mitchell Plant 9,607 $3.37 32 52,791 $3.95 208 88,703 $3.93 349
Muskingum River Plant 18,425 $1.32 24 9,475 $1.41 13 - - -
--------- --------- --------- --------- --------- ---------
Total 164,823 $142 226,272 $323 190,306 $421
========= ========= ========= ========= ========= =========
BARGING SERVICE BILLINGS TO
UNAFFILIATED COMPANIES:
Buckeye Power Company:
Cardinal Plant (Units 2 & 3) 143,425 $2.50 $359 107,433 $2.63 $282 94,615 $2.53 $239
========= ========= ========= ========= ========= =========
Other Coal 145,356 $2.11 $306 174,884 $2.10 $368 112,847 $2.00 $226
========= ========= ========= ========= ========= =========
Other 2,783 $49 8,640 $41 16,330 $15
========= ========= ========= ========= ========= =========
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<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
RATE OF RETURN ON INVESTMENT
<CAPTION>
AFTER-TAX
WEIGHTED
@12/31/95 PERCENT EFFECTIVE RATE OF
COMPONENT (000) OF TOTAL COST RETURN
- --------- ----------- --------- --------- ----------
<S> <C> <C> <C> <C>
Long-term Debt $851,938 (a) 41.59% 7.55%(c) 3.14%
Preferred Stock 187,000 9.13% 6.34%(c) 0.58%
Common Stock 1,009,494 (b) 49.28% 12.00%(d) 5.91%
----------- --------- ----------
$2,048,432 100.00% 9.63%*
=========== ========= ==========
(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 12/31/95.
(d) The rate ordered by the IURC in I&M's 1993 retail rate proceeding.
* Rate will be applied for billing purposes to the twelve months
months period commencing April 1, 1996
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<PAGE>
<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
ANNUAL TONNAGE AND EQUIPMENT USAG
FOR THE TWELVE MONTHS ENDING DECEMBER 3
<CAPTION>
TON
--------------
<S> <C>
ANNUAL TONNAGE
- --------------
AFFILIATED 18,709,925
UNAFFILIATED 2,734,679
--------------
TOTAL 21,444,604
==============
EQUIPMENT USAGE ADJUSTED TON MILES
- --------------- --------------
AFFILIATED 6,881,191,352
UNAFFILIATED 1,170,267,322
--------------
TOTAL 8,051,458,674
==============
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<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
COMPARISON OF BARGING RATES
<CAPTION>
YEAR I&M RTD COMPANY A COMPANY B COMPANY C
<S> <C> <C> <C> <C>
1996 $35,796,469 $44,445,259 $37,119,535 $40,658,912
1997 $36,629,791 $45,989,600 $38,027,649 $41,640,992
1998 $38,056,759 $47,657,705 $38,934,577 $42,610,364
1999 $39,850,648 $49,361,405 $39,940,613 $43,633,272
2000 $41,368,869 $51,101,015 $40,969,991 $44,754,225
------------ ------------ ------------ ------------
TOTAL $191,702,536 $238,554,984 $194,992,365 $213,297,765
============ ============ ============ ============
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PROPOSAL FOR FIVE YEAR RATE COMARISON
It is proposed that in the future the Company conduct a rate
comparison (similar to the type reported in this Rule 24 filing)
every five years, and that the Company would provide such comparison
with the applicable Rule 24 filing.
In 1995, AEP Fuel Supply Division (FSD) issued a bid solicitation to
ten commercial barge carriers to provide barges and barge towing service
to transport all the river origin coal to AEP System operated plants.
Coal and transportation trade publications also announced the bid
solicitation to the public. Three of the ten commercial
carriers solicited submitted proposals. There were no
unsolicited bids received. FSD and RTD spent hundreds of man-
hours developing the bid solicitation and evaluating the bids
that were received. Based on the burdensome effort required by
FSD and RTD personnel to solicit and evaluate bids received, and
the limited response that was received from the commercial
barging industry, FSD proposes that the biennial barge rate
solicitation requirement be converted to a five-year solicitation
requirement. A five-year review would still provide cost
accountability, encourage efficient operations and produce valid
competitive bid analysis.
