<PAGE>
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, 2000
CONTENTS
Page
Summary of Billings 1
Derivation of Billing Rates 2
Rate of Return on Investment 3
<PAGE>
<PAGE>
<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
SUMMARY OF BILLINGS
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2000
<CAPTION>
January 2000 February 2000 March 2000
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. . . . . . . . . . . . 218,935 $2.45 $537 189,826 $2.03 $385 253,811 $2.41 $612
Amos Plant . . . . . . . . . . . . 108,764 $1.41 153 106,985 $1.45 155 110,623 $1.52 168
Total. . . . . . . . . . . . . . 327,699 $690 296,811 $540 364,434 $780
Appalachian Power Company:
Mountaineer Plant. . . . . . . . . 222,011 $2.21 $491 222,688 $2.12 $472 258,648 $2.09 $541
Kanawha River Plant. . . . . . . . 33,228 $1.17 39 50,988 $1.04 53 60,803 $0.90 55
Total. . . . . . . . . . . . . . 255,239 $530 273,676 $525 319,451 $596
Ohio Valley Electric Company . . . . 103,829 $1.06 $110 114,436 $1.08 $124 93,265 $1.06 $101
Indiana Michigan Power Company:
Tanners Creek. . . . . . . . . . . 189,198 $3.09 $585 142,699 $3.32 $473 186,165 $2.88 $537
Indiana Michigan Power Company
and AEP Generating Company:
Rockport Plant . . . . . . . . . . 784,888 $1.93 $1,515 668,980 $1.84 $1,229 816,404 $1.88 $1,536
Ohio Power Company:
Cardinal Plant (Unit 1). . . . . . 129,180 $0.87 $112 133,408 $0.72 $ 96 107,233 $0.70 $ 75
Gavin Plant. . . . . . . . . . . . - $ - - 41,864 $1.32 55 41,302 $1.32 55
Total. . . . . . . . . . . . . . 129,130 $112 175,272 $151 148,535 $130
BARGING SERVICE BILLINGS
TO UNAFFILIATED COMPANIES:
Buckeye Power Company:
Cardinal Plant (Unit 2 & 3). . . . 97,519 $2.49 $243 62,856 $2.49 $157 88,011 $2.51 $221
Other Coal . . . . . . . . . . . . . 170,779 $2.00 $342 137,701 $2.29 $315 183,298 $2.26 $415
Other. . . . . . . . . . . . . . . . 98,525 $224 1029762 $239 417,785 $865
Note: The above amounts include demurrage charges.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
DERIVATION OF BILLING RATES FOR THE PERIOD JANUARY 1, 2000 THROUGH DECEMBER 31, 2000
BASED ON PROJECTED COSTS FOR THE PERIOD JANUARY 1, 2000 THROUGH DECEMBER 31, 2000
<CAPTION>
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 . . . . . . . . . . . . . . $14,821,058 $2,500,536 $ 5,474,229 $ 3,437,430 $1,172,709 $ 2,236,154
Wages. . . . . . . . . . . . . . 12,456,753 147,918 5,344,802 4,694,708 704,556 1,564,769
Fuel . . . . . . . . . . . . . . 6,205,345 9,543 1,597,686 3,585,951 346,100 666,065
Fuel Taxes . . . . . . . . . . . 2,316,911 2,574 628,230 1,290,666 134,982 260,459
Supplies . . . . . . . . . . . . 3,647,299 37,653 1,093,036 1,821,679 210,220 484,711
Tow Services . . . . . . . . . . 155,070 - 110,000 - - 45,070
Other Taxes. . . . . . . . . . . 156,000 - 6,000 110,000 40,000 -
Total Equipment Expenses . . . 39,758,436 2,698,224 14,253,983 14,940,434 2,608,567 5,257,228
Ton Mile Ratio . . . . . . . . . . 0.314587 0.493195 0.075059 0.116876
Adjusted Nonassigned Allocations . $2,698,224 980,684 1,490,675 226,865 -
Allocated Overhead Expenses. . . . 8,412,558 3,057,587 4,647,647 707,324 -
Return on Investment . . . . . . . 891,163 323,898 492,337 74,928 -
Contract Revenue . . . . . . . . . (90,000) (32,711) (49,722) (7,567)
Re-allocation of Cost or (Revenue)
to Affiliated Rates. . . . . . . - (248,579) (377,849) (57,504) 683,932
Non-Affiliated Contracts . . . . . (8,751,160) (2,810,000) - - (5,941,160)
Backhaul Benefits. . . . . . . . . (1,140,681) - - (1,140,681) -
Less Contract Tow Barge &
O/H Costs. . . . . . . . . . . . (142,567) (142,567) - - -
Total Projected Cost
(Revenue Requirement). . . . $ 40,078,430 $15,382,295 $21,143,522 $2,411,932 $ -
Adjusted Ton Miles . . . . . . . . 6,669,463,200 2,100,016,400 3,289,342,600 500,603,800 779,500,400
Cost Per Adjusted Ton Mile * . . . $0.00732 $0.00643 $0.00482
* Incorporated in the January 2000 billings.
</TABLE>
<PAGE>
<PAGE>
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
RATE OF RETURN ON INVESTMENT
AFTER-TAX
@12/31/99 PERCENT EFFECTIVE WEIGHTED
COMPONENT (000) OF TOTAL COST RATE OF RETURN
Long-term Debt $1,077,200 a 43.67% 7.19% c 3.14%
Preferred Stock 25,787 1.05% 4.88% c 0.05%
Common Stock 1,363,572 b 55.28% 12.81% d 7.08%
Total $2,466,557 100.00% 10.27%
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 12/31/99.
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, 2000.
