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INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 24039
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1999
CONTENTS
Page
Summary of Billings 1
Derivation of Billing Rates 2
Rate of Return on Investment 3
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INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
SUMMARY OF BILLINGS
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1999
<CAPTION>
January 1999 February 1999 March 1999
Tons Fee Amount Tons Fee Amount Tons Fee Amount
(per ton) (000) (per ton) (000) (per ton) (000)
BARGING SERVICE BILLINGS TO AFFILIATES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Appalachian Power Company and
Ohio Power Company:
Sporn Plant. . . . . . . . . . . . 237,100 $3.14 $746 264,920 $3.15 $834 275,619 $3.19 $ 881
Amos Plant . . . . . . . . . . . . 81,958 $1.35 111 94,680 $1.46 138 125,992 $1.40 176
Total. . . . . . . . . . . . . . 319,058 $857 359,600 $972 401,611 $1,057
Appalachian Power Company:
Mountaineer Plant. . . . . . . . . 343,239 $1.58 $543 326,108 $1.63 $531 231,100 $1.70 $393
Kanawha River Plant. . . . . . . . 63,638 $0.85 54 77,645 $0.85 66 99,630 $0.88 88
Total. . . . . . . . . . . . . . 406,877 $597 403,753 $597 330,730 $481
Indiana Michigan Power Company:
Tanners Creek. . . . . . . . . . . 210,614 $1.28 $270 197,090 $1.36 $268 187,042 $1.37 $256
Indiana Michigan Power Company
and AEP Generating Company:
Rockport Plant . . . . . . . . . . 878,116 $1.97 $1,726 897,576 $2.00 $1,792 947,747 $1.94 $1,837
Ohio Power Company:
Cardinal Plant (Unit 1). . . . . . 75,018 $1.02 $ 76 129,105 $1.75 $226 129,123 $1.22 $158
Gavin Plant. . . . . . . . . . . . 38,600 $1.34 52 168,818 $1.32 223 106,658 $1.36 145
Mitchell Plant . . . . . . . . . . 2,687 $2.83 8 - - - 48,760 $2.41 117
Muskingum River Plant. . . . . . . 25,222 $3.35 84 26,016 $3.44 89 - - -
Total. . . . . . . . . . . . . . 141,527 $220 323,939 $538 284,541 $420
BARGING SERVICE BILLINGS
TO UNAFFILIATED COMPANIES:
Buckeye Power Company:
Cardinal Plant (Unit 2 & 3). . . . 59,009 $2.61 $154 175,802 $2.72 $479 172,098 $2.70 $466
Other Coal . . . . . . . . . . . . . 239,744 $1.82 $436 316,608 $1.69 $536 252,205 $1.61 $406
Other. . . . . . . . . . . . . . . . 82,180 $148 142,782 $260 273,843 $455
Note: The above amounts include demurrage charges.
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INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
DERIVATION OF BILLING RATES FOR THE PERIOD JANUARY 1, 1999 THROUGH DECEMBER 31, 1999
BASED ON PROJECTED COSTS FOR THE PERIOD JANUARY 1, 1999 THROUGH DECEMBER 31, 1999
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Projected Non-Assigned Upper Ohio Lower Ohio Upper Ohio
Cost Cost & Kanawha Green & Ohio Tanners Crk (Contract)
DIRECT EXPENSES:
<S> <C> <C> <C> <C> <C> <C>
Rent . . . . . . . . . . . . . . $13,667,189 $1,959,917 $ 5,106,909 $ 2,424,226 $2,505,836 $ 1,670,301
Wages. . . . . . . . . . . . . . 12,564,182 149,724 5,979,556 3,597,691 1,583,357 1,253,854
Fuel . . . . . . . . . . . . . . 5,075,022 10,594 1,487,744 2,125,215 892,262 559,207
Fuel Taxes . . . . . . . . . . . 2,350,590 3,239 669,656 970,123 447,299 260,273
Supplies . . . . . . . . . . . . 3,755,734 103,456 1,190,992 1,215,660 735,737 509,889
Tow Services . . . . . . . . . . 4,879,552 - - 4,841,634 - 37,918
Other Taxes. . . . . . . . . . . 96,000 - 4,000 62,000 26,000 4,000
Total Equipment Expenses . . . 42,388,269 2,226,930 14,438,857 15,236,549 6,190,491 4,295,442
Ton Mile Ratio . . . . . . . . . . 0.399501 0.399398 0.089456 0.111644
Adjusted Nonassigned Allocations . $2,226,930 964,565 1,075,905 186,460 -
Allocated Overhead Expenses. . . . 8,670,065 3,755,325 4,188,799 725,941 -
Return on Investment . . . . . . . 812,571 351,955 392,580 68,036 -
Contract Revenue . . . . . . . . . (210,400) (91,132) (101,651) (17,617) -
Re-allocation of Cost or (Revenue)
to Affiliated Rates. . . . . . . - (288,256) (321,529) (55,723) 665,508
Non-Affiliated Contracts . . . . . (13,714,450) (2,164,200) (2,167,313) (4,421,987) (4,960,950)
Less Contract Tow Barge &
O/H Costs. . . . . . . . . . . . (2,319,067) (632,768) (1,686,299) - -
Total Projected Cost
(Revenue Requirement). . . . $ 35,626,988 $16,334,346 $16,617,041 $ 2,675,601 $ -
Adjusted Ton Miles . . . . . . . . 6,719,474,200 2,684,438,800 2,683,746,500 601,099,000 750,189,500
Cost Per Adjusted Ton Mile * . . . $0.00608 $0.00619 $0.00445
* Incorporated in the January 1999 billings.
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INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
RATE OF RETURN ON INVESTMENT
AFTER-TAX
@12/31/98 PERCENT EFFECTIVE WEIGHTED
COMPONENT (000) OF TOTAL COST RATE OF RETURN
Long-term Debt $ 965,595 a 46.65% 7.39% c 3.45%
Preferred Stock 77,718 3.75% 6.30% c 0.24%
Common Stock 1,026,676 b 49.60% 12.00% d 5.95%
Total $2,069,989 100.00% 9.64%
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 includes the premium on preferred stock and excludes
undistributed subsidiary earnings.
c) Embedded cost at 12/31/98.
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 period
commencing April 1, 1999.
