ML053010367

Annual Financial Reports

ML053010367
Person / Time
Site:	South Texas
Issue date:	10/18/2005
From:	Harrison G South Texas
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
G20, NOC-AE-05001941, STI 31943261
Download: ML053010367 (30)

Text

Nuclear Operating Company South Tes Pm/ed Ekdrl GbI7U 1S SauO P.oX 289 5MY k

I ot s 77483 October 1 8, 2005 NOC-AE-05001941 STI No.: 31943261 File No.: G20 1 OCFR50.71 (b)

U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555

/

South Texas Project Units 1 and 2 Docket Nos.: STN 50-498; STN 50-499 Annual Financial Reports Pursuant to the requirements of 1 OCFR50.71 (b), STP Nuclear Operating Company acting on behalf of itself and for AEP Texas Central Company, Austin Energy, City Public Service of San Antonio, and Texas Genco, LP (formerly: Reliant Energy), submits the attached current annual financial data for the South Texas Project Electric Generating Station.

Should you require additional information, please contact Karen Wheaton at (361) 972-8698 or Ron Hyde at (361) 972-7992.

George R. Harrison

Manager, Financial Services MW Attachments:

a) AEP Texas Central Company b) AEP Texas Central Company c) Austin Energy d) City Public Service of San Antonio e) CenterPoint Energy f) CenterPoint Energy g) STP Nuclear Operating Company Annual Report Form 10-K Annual Report Annual Report Annual Report Form 10-K Financial Statement (Attached)

H 014
-b Q\\AI IUMNJULRSOURCrES\\INSUPANCE\\A.NNUAL NIus D0S\\2005\\NRC.A\\NNUAL FIN4ANCIAIS (W05.DOC

STP Nuclear Operating Company cc:

(paper copy)

Bruce S. Mallett Regional Administrator, Region IV U. S. Nuclear Regulatory Commission 611 Ryan Plaza Drive, Suite 400 Arlington, Texas 76011-8064 U. S. Nuclear Regulatory Commission Attention: Document Control Desk One White Flint North 11555 Rockville Pike Rockville, MD 20852 Richard A. Ratliff Bureau of Radiation Control Texas Department of State Health Services 1100 West 49th Street Austin, TX 78756-3189 Jeffrey Cruz U. S. Nuclear Regulatory Commission P. 0. Box 289, Mail Code: MN1 16 Wadsworth, TX 77483 NOC-AE- 05001941 File No.: G20 Page 2 (electronic copy)

A. H. Gutterman, Esquire Morgan, Lewis & Bockius LLP David H. Jaffe U. S. Nuclear Regulatory Commission Jack A. Fusco Michael A. Reed Texas Genco, LP C. Kirksey City of Austin Jon C. Wood Cox Smith Matthews J. J. Nesrsta R. K. Temple City Public Service C. M. Canady City of Austin Electric Utility Department 721 Barton Springs Road Austin, TX 78704

n-

.-Lm r

l. m

. 17

!4.

g.g I

11 I

II,=

S~

I*

S~

S.M S

S~#

~

~~

2004 ANNUAL REPORT TO SHAREHOLDERS MICHAEL G. MORRIS Q'airman, Pesident and Qitf Esecutize Offier DEAR FELLOW SHAREHOLDERS American I'lectric powszer l)ecaine a strongerl inore focused company in 2001. We sold non-core assets. reduced debt and met our earninigs target while thc people ol Al' overcame soIe o l'the worst challenges Muhcher Nature can offer. In addition, we restruictured the company, creating seven operating uniLs to improve customer Iocus and to move more (lecisions to the local level. We aeconiplisliedl a lot, and we certainly have much more to ac-coinplishi. But, all told, 200.; was a very exciting and good year.

FINANCIALRESULTS AWI's ongoing earnirigs per shiare Iir 2001 totaled S2.33. withinu coujr guidanctie range of S2.!0 to S2..It. As-reported, or (;AAI, carnings (prepared aec)r(Iing to Generally Accepte(J Accounting 1'rinciples) were S2.75 per share, relleeting gains from asset sales.

Our share prier advanced 12.1; percent last year well ahlad of the overall market - and total return to shareholders, including dividends, exceeded 17 peret.

AEP's liquidity position remained favorable in 2004. At year's end the com-pany had more than S400 million in cash andl cash equivalents on its balance sheet and access to nearly S3 billion in credit Iacilitics.

ASSETSALES In 201tlJ we substantially complete(d our prograi ol selling assets that are unrelated to our core. dtomnestic utility operations.

Among the facilities and operations sold were 1.(00 megapwatts of coal-fired generation in the United Kingdom, our interest in a power plant in China. the I.ouisiana Intrastate Gas pipeline and storage operations, four doimnestic indepen-d(ent power plants, and Al-A' Coal assets in Ohio ard Kentucky.

Sone divestitures were unrelated to our sale of non-(:ore assets. XW sold most of our Texas generating assets to establish our level of strantled-cost recov-ery, comnsistent with 'exas electric restructuring law.

The si.4 billion in proceeds from last year's asset sales along with re-tained-earnings growth antid pension contributions helped us meet our goal of reducing our debt ratio to below G0 percent of capitalization.

GETTING CLOSER TO OUR CUSTOMERS AE'I reorganized its field operations into seven operating unitS last year to move decision-making respoTIsibility clOesC ti uS-tomers and other stakelholders..Already, we see positive results from this elliort to strengthen our ties with the communities we serve. I'm confident the new struc-ture will allow us to meet our utistorners' needs more quickly and elfectively. And positive customer relationships help build positive regulatory relationships.

Each operating unit is headed hy a president and chiefoperating olflircr who has authority for energy distribution oiperations and (i)r customer and regulatory relationships. Other companywide operations, such as generation, transmission, and distribution dispatch. remain centralized to retain the efliciencies that mat-ter so much to our custormers and regulators.

2004 SHAREHOLDER RETURN 25%

mu firn urn so S& W Vk k*

it ie I

AMERICAN ELECTRIC POWER COMPANY. INC.

Our new operating units are proltled in thi'% report. I hopc you will read about them to get a sense of our fiont-line operatiolns and the people who run themt.

ACHIEVEMENTS AND CHALLENGES Onc again. in 20tll All' faced many operational

hillenges. Atd. once again, our people u

espondedt Severe irce storms crippled much ol our Olhio service territory in late l)e-(emlbr. Nearly 2,)01) people fiOIT 1:; states including AI:I' employees, contrac-tors and neighboring utilities' employees -- spent time away from their families during the holidays, working in irigid, sometimes hazardous conditions to restore piowe to our customers.

I.ast sunnier. Al7l' dispatched hundreds of employees and contractors to Iloridla to assist utilitics ravaged by several hurricanes that hit in rapi(d SucceS-sion. TYimes like these truly demnoristrate the skill, dedication and drive of our I)cspitr our overall high-cquality service, wec continue to address service reli-ability issucs ill areas ol our service territory. In Ohio. we have made progress on a progranx to improve the pl rlorifialIce of our Irast-reliable energy distribution circuits by an average ofl 1 percent. IV(.

5 are also working hard to improve service reliaboility ill Oklahoia where nev service quality rtles took effect lawt yeart nd in L.ouisiana antd other sta'cs.

I'Im pleaIC; to tell you that, after a pcermittinig process that stretched over soi ne l5 years. contstrtruction began in 2tmtJ oln the IVyoming-Jaceksons Ferry 705-kilovolt tran,,msission line. WVe hope to complete the 90-mile line in mid-2006. 1Th nxew line will help reiniorce tth( transmission system serving southern lVcst 'ir-ginia. southsestcern Virgini.a and (lastern Kentucky. %where energy demand has skyrocketed since tile last major transmissioln line was built to serve that region mTore tIan 3() years ago. T'he prqjected cost of building the line is S271 million.

All told. Al:l' invested nearly S8t00 million in our energy delivery system last year. \\Ve plant to invest more thait Si billion in the system thiis year to improve performance where needed.

All' jbiTed PINI Interconntection in October, fulfilling onr cotomitmient at the time ol thc (:Cniral &. South lVest merger tojoin Regional Transmission, Or-gatnizations fR I's.

I!JNI, based in \\'alley Forge, I'a., oversees transmission sys-temn neliability in a 12-stategl-i encompassing AEls eastern service territory anld provides a larger common market for ACI' generation. Our success in tIme 1'.\\1 nmarkct increases as wt-gain experience, and stc believe our membership will protdice long-terim benefits fi)r customers an(l shbareholders.

Tlhe Federal l'nergy Regulatory (onmmission also has approve(d Southwest PoeVr lool (SI'1') as an RlF(. Al]' transmnission assets in Oklahoma, Louisiana, Arkansas and a portion of Iexas oIll,within Si'l' Our Dl.(. (:ook nuclear plant set site records in 2100 for generation and capacity fitetor, surpassirmg mile.StOlcs reached in 1996. L.ast year, the plant gener-

2004 ANNUAL REPORT TO SHAREHOLDERS ated 16,770 gigsawatt-hours oflelectricity and had a capacity factor of 9l2.7 percent.

We're pleased with the recent perfornmance insprovemnets at Cook a nd anticipate further progress. Cur goal is to achieve top-industry performnance.

Although we have rekicused o0l o(ll Core ntility lbusiness, our comniercial businesses continue to add vallue to the enterprise. Our energy miarketinig and trading activities center on areas where we have assets and customeris, helping to make our operations Imotle profitable while hedging against risk.

I'a proud to report that AI-A' was recognized as an exciplary workplaee in 2004. The coinpany was iriia nid (il of the best places to work forl women and minorities by I; encr magazine, for working mothers by llorking jAtfId'icr magaz inc.

and Ibr thisc vith military lackgroun(ls by I)(a. 7obs magazine.

2005: INVESTING IN THE FUTURE WAe are optimistic ahtout our prospects this year.

WVe expect that thc gencral cconomny will continue to strengthen. which will benelit Ourl custorners. AJA' pro jccts 200.1 ongoinig earnings of'S2.3(0 to S2.5( per share. We plan to reduce our operation adni maintenance expcnses to tihe extent possilde andl sustain our deht-to-capitalization ratio at below ;O percecit. We will also coatinue to evaluate the potential flrl aIl increase in the quarticrly dividend.

'I'Te year is already off to a good start. We have sold our c ontrolling intterest int I louston P'ipe l.ine Comipany. generating applroxiinatelv Si billion in cash. We reachied settlement agrecinents with federal agencies regarding investigations of gas-priee reporting and gas-storage activities. And we announced a goal of fully funditig AlUl' pension liabilities by the entd of 2(1J5, which l

will further st(:igthllen our balatice sheet, enhance earnings pot(eitial and reassure our valued eniployees.

Much ofA I'l's energy will f,,cus on regulatory activity this ear acis WC explain our need to make significnrit itvestments in our generating fleet. thr largest in the nations. Our goal is to persuade oui regulators that iniproving thle environmental perforrmanctc of our plants absolutely will be in the hest intcrest of our cusrotners, our shareholders and the people who live in the conimunities where our generating fisailities arc located. The end result, will be cleaner lair lor everyone, a fair retin flor sharvlsolders and the assurance ofreasonable rates lor custonsers lbr years to conme.

Most of the rate activity in our eastern states is geared towardl r.ecovery of plantied investmeits. The rate plan that Ohio regulators approvetl in janiu-ary provides a ('air balance for All' e ustoniers and shareholders an(i will lientifit the enviroansent.

In Texas, we will seek stratnded-cost recovery oni the Al 'I'cxas Centtral Coinpany generating assets that are heing sold, as authiori;ed lhy 'Ixas deregula-tion Iegislation. The differenice lietweets the plants' sale proceedis atid book valle can be sccuritiz.ed, wsieh will generate cash to pay dliwnh delit and( fund capital expeniditures. We expect to miake a mitd-year filing with thle ullic Utility Comli-mission of-l'[xxas and anticipate a dtecision around tie end oftlic year.

4 7I

AMERICAN ELECTRIC POWER COMPANY. INC.

,,.v.,,,,.;;.w; b <.,

AEP uscs more coal than anyone else in the nation - somc 75 mil-lion toIS anuntall on average. i\\pproxininate~l 73 perceit of 'our 36,000-incgawatt gencratin!t_ capacity iS fired l) coal and lignite. ( ratiniued uise of coal is iilmpor-tant lor the energy seoritvand econoiny of our nationf, and lbr thl iotere.ts of (or stakeholders.

lKeepi ng coal as a viable energy opt ioin will rcq-ltire advanced tecihnolo-gies. 'I'hllat is why weare cointlnhing ouir tradition oftechnological innovation by pionccring constircition of the largest Integrated Gasificatioin Conlibined Cycle (IG(;)p lant in the vorld. N% e announilcd this clean-coal project last year and will fi,,alizc site scletion and seek cost ree overy in 201)5. We anticipate cotnilic-tion byv 201 o.

IVfiile other co-iil)inaies remain fIt-msed o.1 silicreritical coal-fired genera-tit in i itictrntzr I iy AlEl' ne a rlv 3(1 yea rs ago --~s

( arc miovtig to the next lev el olC generation it-lcnohlgy.

Ne believe increasingly stringent air-qluality regulationis and the possiiliiitA otl eventitI constraints oin carbon dioxide cnission s iake 1(;(m(:the right invest-inent a nrd the mnist e nvirounicrntally respolnsible choice Ior fttitire coal-fi red gen-

-ration. IG ( ( :technology ha s tIe potent isil to)lr x(leie the virronimental t tnelits

..ra. hi. h1c- 'lliei.

, inalturall gas-lirr d corbinled-cycle lacility while calihalizing on the.oeil)raratively low antI stable 'uel costs associated with coal. I invite %ou to read nioe about 1(;(:(: techltology later on in this report.

AICl' alko cxf(ects tl invest apliroxiniately S3.7 billion throuigh 2010 and an-other Sl.5 billion through 202(0 in improvements at our existing coal-fired plants. 'his will extend their nrodtuitive lives, keq) them operating profitably atid inlprlnve air tuality lbr those living nearby. I eienology already in place at Soint.\\

AIt' plants will be added to tither facilities to reduce emissions of sulfit nhioxi(le nitrogen oxide and mereury. Al1l' l.hs invested rottghly S2 billion iii en-virotnioenital enhanremeoits at otur generatitig fatilities sinee the midl-1990s.

I'ven after ele( triv rates that allow us to recover our planned expenditures ale aplinovedl, our ctstoniers' cs(ts wsill remain among the lowest in the regiotis we serve. AIl also will stay compietitive in whiolesale power niarkets. 'Ihese arc eiirriotis advantages that we intetid to keep.

AEl'1 will eottitle asan indttstryleader inaddressingglobal climate change.

As a iuunditlg niemnber or the Chicago Climate l xchange, the first voluintary platfiorim lir traditig greenhouse gas emisnsioni credits, we have comnmitted to re-(IU/e or onfset grer-nhlowise gas ermissions a cuminiulative Itt pelcent between 22003 atil 20116. Iihis is its additionn toort widely reccgigni;rd tree-planttingp)rogran anid iiir e*fiorts to pareserve fire:sts to se(luester ca rijoti dioxide.

Adivese luel mnix that inchludes renwable cnergy is importatit for our na-tion anl our conifpan. Ali:' operates nearly 9(II meg-gawatts oh thydroclectric gen-cration andt is one of the largest generatots of wind energy in the Unitedl States with motetithan :3t1 itegaw atts oieratiil, in 'l[exas. AVc arc exlloring oplportinii-

-}.!. 1.' z i :w

¢ a l t s: 1 )._,, ri

¢ zF_

• Rsi -

-- i,,.,

.'!t i

1

_v

+;

l ;_o {+,8t :s > l.e r S si t vii 1 5 1; ; ¢ rd j>. BiXw. sts . ; i > X te ;

• i

\\

! 5 o '

{ t

! 

l 9 -



-; 5 t i ;>.;;

¢ > '

x s !

& o.,

,< ^,....................

x

_ !-. t...

r 4 ;o t

1-e

5.

!t

.s, i:

R:

t c:

i t

.



z

.

s; J

,8,, ^9:,;. -,-t.,:,,x,>.-£^. !: ;,-<,,,,,; -.S-....................... ii "........,. :-s; ac T_*S t1

-Iz+*

w i 4

i ;4 v

- 't t t ! !$

)

5 <

x x ;i n i '

' 4 zz x C

- ;'ws 4 ' - '

F '. ;! 5 X > <' ! z 's < 8 t > ! w e.!...-......... : !: -. !. :.........,.. # f.

w  <.W: c ; -...............

<s;.......

z _ _......

> ! 6 a s^sa; 4 ia(ue =;

v t s s W t 1_ S E < 1 > w t u s x.

L s ! _ C w > > u s -

A > S S F -

F z; ;; t -,

b l ! il; E v; 1 ¢  ¢ t t { 4 a F !

s X - '

C t l

• e =, a '

+

' < t *; _,



t z ^ * -

!:t

,-,_ ;,,.- ;--; -.. t., _ -..,,

¢ e s -.-^! -,:

';q-, -:,:¢*-> <,- -:

-s;,,

-S-j

^ *-;,4 ;t,4 -, i C,-,.,£.;,,,,* --,.-;< -,<,;.

2; r,

oL__<:t9r'

._si__

__ 

E - f.......................................

t.!

' ':

 -;

Y; Xg;el

ff, < - - - >;-

¢< <

j,

.  " -.

.: ! t >.

 : ' E i  ' ', ' '. v. v. ' v. w  ',. - i;. V ; ',

z,P,,¢,lBEs, h5v L

i,., Ce aS - is ta.s X,-. ;,,;,,.- !1. > -:

• :

-. ;,: -8:. -.

t t x r

• -; -? +,

 

  > ¢ t s > >

i tt

! otli3M1t

. -.?.

. -s-,-?,.

e i. Si i',e,,i'

. 'i, o'..._ _ ' t i

t, t

5

!'s

.'f 1, 4.,: - f...;.;; ;-- >; 1 A

,jj F C.j- ;n--,: j O --.-

.e, j^- e, x,-% - ( '> ! i.; ' ': >,-; -

l t;s xw tXffi '

x '

) +; !

z ¢ >z f ii5 _ R.

P z _ 5 s9 $

e 4 _ ; _l '

i 5; fn r;;. -J-

.,i;s/<w

< s ;jsjv't<-xw-<';t HS.

1 ;wi*<.s-

ts l -- 't>,

X

} ab

sfv,

,','!-'.,

,,.,:_..117 -;-,

l

: -* s<..;..-;;:.. 1;: Ki, k - ;-

-za,'s :-il' -'t'":ltl,'j:_. ':,';:' ':;. -.'t -. ;-:9.'..";'!,,-s. :,-.'j3*:'-

-i -; ----s-r *-:- j -. !_. it. S - tk 4A< > t-< o  ¢, l { i.;

. .i;.

^

..r S t..

:., 5 ;, z, -,; j; T,r,

..,,,..g,,;,; i, t.,.;; s; j ! s;.., !.

ei :r - } g>;. :,,,* s + M,,-. X,...:,_,Jo ! :.: -:.- <,

! is;-

t;

^ ;

to- -. .... _ a4.'C.E

>, ;! <';E..'..........................

j'- s 4 - ' S, t--i...................................

_4 I

2004 ANNUAL REPORT TO SHAREHOLDERS ties to grow oui wind pl)ortflio We're a Iso testilng tilhe tlS( orpla nt matalrialI and aninialwastee combiined,A jitl coal at some ofotrplants to re(uce cmissions.

SAFETY AEll' emrployee i are ct 01i6tKtuIly urged not to compromise theiic saletv. Jr oth(rs' safity, in order to get tht jol) done. So it pa ins me to report t hat thr rc trinployces lost their lives in jol)-related accidents dluring 2001I. Our becarts go (jIlt to their loved ones. No s.fty programi is a sutccess if fatalities occur. and we are reevaltt~tting every aspect-t ofour safiey programs to find new and better ways to protect employees and raise s.tfett awareness. It addlition. we have changed our management incentive coinpeinsationt plan so that Tio sali-ty-ielated awardi will be piaid if sve experilttec trt-e fCitality during the year. regardless of bow gtod otir overall sal;ty recortd is.

TRANSITIONS The AlUl' Board of I )irectors welcomcd Iionel Ntissell as a rnew tminlTIber in 20(4. 1.ionel. senior vice president andi treastiret.r lcp in :o, Int.,

hrings fina ticial actimeni an(d valuable experience in corpora te strategy anti lisdi-tiss(1evelopmnent tts outr ndeavor%. We're del iglhtied to h.ve ii oil onboardl.

We'll miss l.eonard t alwa, wbo is leaving tie All' Wloarld after eight years of service. fis brotad knossledge oithice cnergy indwitr% has been a great asse t dur-ing a volatile period br our sctuor. We wiAh Len the bcst.

Kcy exectutives retiring sinec puIlication ol' our last annual ]e e)o t inc title T'ons Shteklev, vice chairman antd clhiefoperatinig officer: 1.

fInry F'a yne. execu-tivevicepresident Energy I)cliveryand farnier ehieffinancial Offivcr. ArniandoI l'efia. senior vice plre sident linancial Policy atid boriner Al: trtasurcr; Melintl Ackeritan, senior vice president Iluntan Itesources: and (;hl1nis F'iles. sc nio sice president M)istribtution. l'ath has left a positive: inark on oti Coisipally. WV are a better organization lecaimse of their contrimutions.

A LONG-TERM COMMITMENT I want to thatnk all All' stakehol ders for investing in our plans aid (our visioti. All' is ini the btusiness of provitling.lectric servicc in i crst-efi eftive. environmnentalIly iesponlsilble manner fin getteratitons to oonic. ()tur uinparalleled assets - hunman anti other-wise are key to attaining tiliS goal.

tVc do a pretty goodl job at it. but WIe nced to cntitilille to get he tter. That Will censur c a secure and rewardlimg future lr otr cuistomners. out enlployvxs, and you, our valued shareholders.

MICHAELG.MORRIS Chairman, l'resident and Chief lAxecutive Oflicer I

Mvarc~h 2, 2t)(.)_

77 Al

-, 7-7 I I Ai I I

VT"

-7

jL

Pi

-e adi

2004 ANNUAL REPORT TO SHAREHOLDERS Our customers speak-7Throqgh Ilettes, electronic message.s, ielel/)h(ue ralls and ol/elr coin-nnunicalion vh/lidcks, our customners let us know what is on their minnns. H-Jere is a sanlllinmg (!/

comments fiom cstni omers about their expenences with/ AL P and its operalhiig unit.i:

A huiuge t hanrik you to tile Anierivani lU:ctric 1P)wer crew that restoic'l-u (njil vcr

at 2 a.mo. Cl irtintas 1).iv. AllI of thlesel' fioks CIerit above and ))cyonCi the

ir dhuty.

workirig in di1e dark in frigid temperatntris. Thlianks also to the lamiilicc oIftlh electric wiorkers wshoi had to ni1idifIy lidalyV l)lanis so that their hilsbandsi, dlads.

lirot licts a iid tillis (til wiork in uinhliciivahile condlitionis to inike us coinforl-able. W\\e truly alpipreclate all thIeir efiorts and are very grateful for each ol thellm!

-COLUMBUS, OHIO It's time 1f ir central 0hio to reach ouit and sppluort the Anicriean l 1ectric P'ower CrTwsN Who ci ntiniuie to work aroun( tile click tni restore iower to thle Coihi rubs arca. (lr flamuil. along with thousands ofnour neighblors, stiffecre tille efficts of losing p)o\\\\er flOrseveral days. This halisi en no sniall sacrifice in omliOrt. warnitli and cuollnvllifilce, esperialilv during, tle holiday season. Throuighi this, lclieve:r.

there ar i lirov thal we-scene to have firgotti n or. at tiries. blamred. T'lose hcroes avr tiellw A l' tInltliyecs is hi at working dlay ;an(d night. sorne sufn lring extrenle disi:cinfiwt throuhhll the night. outdoors ain-away fiomn their l'nailies, to bring nrnir.ltyv bkick to onr ioninititity. -

BLACKLICK, OHIO

'I'nlimk ytni so very mnutc-h blir all tilie tinu dun(d cllort you all poit toward regailling our lui%%er. We aIp))reciatet evcry inuiote (of every cold, wet. danigerous day all(n nighi \\oil spient working. Wc appieciate all tile endless hours ofstress and (dealing with the pihlxlic Von sp)ent. Most (if all. we aipireciate the fact you were takein Irorm

%ourl Illnilies hiiring the holidays to lie t(here for all (if us, to make our holidays nrort heanralblc. -- DANVILLE.OHIO Just a note to thank yon fbryvoursupelh elklrts in restoringpowerto the Coluiiml)us areal. Conside ring tihe nmagnituiid of tIis storm, you did an outitantlinug,j)b. \\Ve haie( bee a custominer since 1956 and will always remain so. -

COLUMBUS, OHIO I wvoi id like to take this o01)1)irt unity to exl)ress oui sincere af)prt'ciation Pir tile quiiik response \\;0)1 gaive US to hell) out fair. W'ie p)urt hascl a new ride and we dens-p[ r auwly needed :idditioinail lightilng for this ride. I made a pilone call this nairti ng airil by 3:o ti tleIs aficrmi ini the lighits were iiLl ulled.T

' al alaout service!!! It is very impl)irta ut ton 0)1 small coninmunity to Ih.ae a service comprl)any that still believes in Sl:RVI.

'Ilhatik you. PS().

]

ir hciitg a conipaly that still helps out tile l ca (aoes.

(Garniral Ghairman, Fort (.'o6b District Fair -

FORT COBB, OKLA Appalachian Power Company, organized inl 1926,is headquartered in Charleston, W.Va., and provides service to AEP customers in WestVirginia. Virginia and Tennessee. including customers of Kingsport Power Company.

Major industries served include coal mining, primary metals, chemicals and textile mifl products.

Appalachian Power has approxi-mately I million customers.

WI, Indiana Michigan Power Company, organized in 1925, is headquartered in FortWayne, Ind..and encompasses AEP's service territories In Indiana and southwest Michigan.

-Principal industries served include primary metals, transportation equipment, electrical and electronic machinery, fabricated metal products, rubber, plastic products and chemicals.

Indiana Michigan Power has approximately 576.000 customers.

I

AMERICAN ELECTRIC POWER COMPANY. INC.

Kentucky Power Company, organized in 1919 isheadquarteredinFrankfort, Ky. andservesAEPcustomers in eastern Kentucky.

Chief industries served are petroleum relining. coal mining and processing operations, steel manufac-turing and industrial air products.

Kentucky Power has approximately 175,000 customers.

I receive(ld vor letterit thc, he ail today explainiingt I tI juwer itages in the II rant -

we ll at(lI Nentotirs area. I wvantitd V uu all to kit' iw Iu lit i 1i(

II Iti)r(:eiette Aoicri-c-art liert ria Power, in ceverything t hait youi do. I don't thinrtk thc pejopile in thlis area tinllerstand lhow hard yoour criployesc work. -

NEMOURS. W.VA.

1'xe dlealt withl oiir (Ciiton1er Solution. (:exit( :r three sepa rate tinlss, f;n Irtr'ee dilferti't things, andU l'Xe hewen imrpressed. I wasn't itnpresscdwl tvitli the service alter all, (that's what yoli're in the husincss ol'p ro'itlinig. I astin; inre:sIcwI wit I tli courte s%:-ROANOKE. VA.

A ew ra m n

tits ago. it becaine increasingly cear thiat sorne oIftitir streets sere tu dlark an(l Iar too inmiting ;uir eriniinla a tihity. So1 we asked All to hlIp ius siline molre light oli the I ast Id.d.ind they resprodtled (Iui(.kly to get it clone.

.fayorr-CHARLESTON W.VA.

Mv hu'hand and I were xisited thkis no n ing Iiv two A

, eltni:ins anid thley tislpcktecl oin i ditch anrd txortk (1d1one s50 E:r. 'r'licy dvised rn liuslmatIl ol'a cIup)le fIniistakLe hs had madie and what he nteeded to do to i:ctilf the prolbleins. 1 1:

wert: rmst h1elpflt in thier instriutions! -CHARLESTON.

W.VA.

'I'llalk you for yOu r rint ril)utiou tol thielIidIv I :hieation.i In(lnowrt-icnt 1out ih -

ti-,n. 'I'licn ;JU tat ioi's litirpow is t-s cuvin si ijliolot t tI the 4.O.)0 st sti(dei s en r( ml led itt MAINI)x uhlic Sechi ools. 'IHlirtlr h granits.t](1 ids la holaliips wv else thav Ilic eapail-ityof inipactinig (evry student ii te tlistriet. %\\e are so pleiser(l t lias e \\ou as a ar t orl'ti s endcavo)r. Again t haLnk v, oit f; iri eiin tiniied supl)ot1t ol dI:t'edaCti iI!

1'resident, Bixby Educational Endowmtnt Foundation -

BIXBY. OKLA.

I wanited to sav 'I IlANK )'OU to SouthloestviCn Ulectric Potier flr restorirtm, mv p-i.sv cr after lHlurricane Frances. WEe isc e without piowscr far si x days altd the: licst sight in tlie NVorlld was wV1hCen we saw lne ok vi otin trucks roll into oin I

develmmpinriet to wvrk o ottorprower restoration. You trtitieks wre all over thlis atrcaltkin. (lii-getitly to restore pom\\er. I apologize finr licing late in sendlinig this e-niail. (C;ouplel(d with the new ouitage we sulolrcd Fruin II urrica ne J.talune, timen has passed. At any rate, I wvanted iour eonipalr to ktinoi that I'lorida appricialttet ll a Ithir trss yotu setit t) help i u in the aftcrinathi if VI;anlees. YO(U 1)11)

DID A A'I' !

-LAKEWORTH.

FLA.

AEP Ohio serves the customers ol Ohio Power Company, organized in 1907; Columbus Southern Power Company, organized in 1937; and Wheeling Power Company, organized in 1883.

It is headquartered in Gahanna, Ohio.

Major industries served include metals; rubber and plastic products:

stone, clay, glass and concrete prod-ucts:petroleum refining, chemicals.

food processing and paper.

AEP Ohio has approximately 1.4 million customers in Ohio and north-ern West Virginia.

I (n beheliatlffol ir Boardol i')irceturs. tI ist tall'aid tI lI 'I55,I ui( I peiple %%-t eat fioid froin the Fuoud IBanlk oC'(torpits 'l rioti I want to thank Al 1 "I' eas fi)r tlie donia-tion of three Iaptoep) eointiuters with iatry ing (;IeS at11d t(hirte d' t.kintg stations....

N;our (otnation has allowe(l the Footd Battk i i jitt the groxviwlg deniand(l FIr lec-

tirllin fi di oinl ill t lay's, Nvorld..) Or a ilitv to reach.it bevonid our swarell sa e

%%alls will I el letmed ilin he cNpauiisionit services we r)ro'ide tlilieo tlingrv in ille II niolit ies that NVe serve.... We arc gratefitl lir th1e suppol)rt A1 Iixas has flTervl the Food Bank tlito)uglioii the v(:arn. -- Executive Director, FoodBank of Corpus

(:hristi-CORPUS CHRISTIJ TEXAS

()n bellallt'ol' Itl h%(i?

(.:ii iiit y I lead Start jirograni, ileaic aeccc it this Iltter o11 ali iretiati a.i oir getnerotis oontriljutioii brought ;a pri.eless aolriit ol i"! to tIl(

• I i klren as It I:V ri( eives t hcuir gifts.

Director, I Iebb County Head Start LAREDO, TEXAS TOWBOAT CREWS DESERVE PRAISE -Fditorial, It'heelinie (lIlaJ).,V us-Regijter -Jan. 7, 2005 Most of, thl ti:oie. towi loat crew\\s irelrh travel up and dtowi (lie (O)hio River, Ilhci dl lv uis1 ilint "tows" (if barges. Iit. that chaniged fori -lie oil soir 1,1 thle bl)itts whlisrlav, we n theyV wcre asked t(i lheli s(ip inmore than a cldozeu ruiiawvay I )ii ges.

'I'le l )arixs Ibroke loowe hi,ir Amnricani Illectric Pi iwer's Cardinal l'laint at liril-liai. Sinie bliung till tIl thie l'ii: Is landD I)an hllut fiutr passed over it. 'Ihat P rOInled aulalulilias t Clise O )llia Rivet lIridges at Wh ed igin inl I'al ol ihat Public Service Company of Oklahoma (PSO. organized in 1913, is headquar-tered in Tulsa, Okl, and serves AEP's Oklahoma customers.

Principal industries served include natural gas and oil production, oil refining, steel processing, aircraft maintenance, paper manufacturing, timber products, glass,chemicals, cement, plastics, telecommunications end rubber goods.

PSO has approximately 505,000 customers.

I ELECTRICPOWER.COMPAtWQ NC

-.-i'..,-;,;;;i icy.

v r

$.;;I~i~~L

>.S.

i; e^':_.o4

.14",,

X., *"Mkl U

Trr AlB?.."

I1 Rae U'

. ~ '

1

J
2

-1

2004 ANNUAL REPORT TO SHAREHOLDERS inigi it halp pn il'thi: mnassa-e I oarges hit I ridge )icirs. One did, buit didt not al)p ar

t.

laLinra-e dli' I t I li Bridgt;stgiiiliiantly.

()On tiie thireat l hranb Il.' lear tiowinat ews inl Itie arna Aoure asked to stopl) tihe autge-s. Atk udi ng tin tih (.tia l (tirard.

t wwl niats a~t-onplslied that task in at least CI 'tl i ll ta leCs. ( ) 1hel r tl tia A

It ltrges al rentlv weNrt.rgrnund.

Witners ill NVlellitig saw aln exani iliI td

%i

-izrk done liv I

ll a A1 1' rwho)its t nrw. 'I'i crew pit tI heir It at in thu pa i

fitif a run anawav baqrge. tIherr experitlv ludged it arid all.)wed til-swilit c:o1l rInt to c'il t it ;alontside it harge artialc.d Ii t) tire Iroat, wihere it SVaS sectill d. '.1iN wl )at

]eC% Iltenll)'rl% niade tl diilcult. l.tin-gere 1i.1 t akl I tul, easy. rd-I t i)rted wit rie'n-s.

It wVasru't, tI in rse. It required a great airoinnit oil'skill aIid at least somne crtz rage.

TInd as1iit i crws wh ist 1' d

htr~rc tiv I tirnnawavs dewer-e higih )raisie fl I licir

%si k.

AEP CHAIRMAN'S LIFE SAAING AWARD

.A:I' niruvilerl the' h::hairian'dts I.ile Saviti A\\wa rd ill 2001..Ii te award ri-cogt izcs tll(h cxtrarrrdinarv elfarts il 1:1'Al' rnipzltcsc to ficlp pe dqe rie ni:ud

i. ctl. lrairniaii Mike NIt irris lpreseltedl 'awards to Phitlic S. er-vi(i ( itninpany tif'()lklalhonna em iloyces L.rc Ann.Xm ycrs and FIranrk I n'lillipsarid A\\ I Mit

)iin llplyd-' Sw-Ft' r l 'isih.

NI 5crs. a sli'i s aitten1laill ill Ciikasiha. (a)k la.. hIlped a tsnia Iran living chased I)y

I gniil-Wi'chlintug mian. NIS crs igiril t( Idiall's ti iret, s I(diInhe diWc'V(niall to.safit!

and ttsdl lIet.,li jtlIrte top.all 1)(iiirc. 1i1ii Intial was arrested a shonrt while laitr.

I'Ilillis, t'(IlIItlitV allolils tialiager irascd in XNI.Alestcr. ()kla., alerted lii ncighillirs anud valhled 91 late onntr nig!it alter lit-n1ticed i thr a lonte' in hit nl igh -

h)ri rllod S%.Is filled %N iti sinillke. Ni i1t11( was licinlic it thie burninig hii-he, ch Nv-asit'Cstti}iriw

, hut hlit, Aas ;a1(e' titm ioisilm titlivr neigihii mr-. Sr.int-ohi lie ortl i-cItnInes stistairilcd heat rlaira!e...

Y'ristli. a I istril.t itin linie t, C.iliinltaor in liucyriut', Olior, resctricd a ti urldl cr-t wVa;S tsaidterirg in ilie niidd

.I ':ta Iniisv stirtt in tr)vtlona. I'la. IFrisch wili) wa\\

ssi t il r txith p )ower restinwar iet alter a hin t riatrne. visileui ilxnies in tihe neigit1itir-linus! itirtil lie muriel, rite boy's lituails'.

NIi irris said th! ( iiai rinatn's I.i'e Saving Aw.i rd is i it'r "tlire itinotin its witri stand talIle tihn tih' rest ni'nts....

snt it alttlrllat lrolmlc wib ate iiteregstid in pul)lic sm'rvjt We.

m igice ht itirtschitt, and 's e iveu riursehes Frecly."

Southwestern Electric Power Corn-pany. organized in 1912, is headquar.

tered in Shreveport. La.. and encorm-passes the AEP service territories in Louisiana, Arkansas and the portion of Texas that participates in the South-west Power Pool.

Chief industries served include natural gas and oil production, petro-leum refining, pulp and paper manu-facturing chemicals.food processing and metal refining.

Southwestern Electric Power has approximately 442,000 customers.

~2 AEP Texas, headquartered in Corpus Christi, serves the distribution consum-ers of AEP's two electric utility operat-ing companies in the Electric Reliability Council ofTexas region -AEP Texas Central Company, organized in 1916, and AEP Texas North Company, organized in 1925.

Major industries served include oil and gas extraction, food processing, apparel, tourism. metal refining.

chemical and petroleum refining, plastics machinery equipment, and several military installations and correctional facilities.

AEP Texas has approximately 850,000 end-use customers.

I I

AMERICAN ELECTRIC POWER COMPANY. INC.

m New generation technology demonstrates our leadership AMERICAN ELECTRIC POWER'S IccillotItgical It:mclersh ip ispirli)eling th. comnpany tt lII t tXt,(i-tir(

IL-,]

Iit oftttj Iilatst. AI: lI pltjlESt) I id;ian Inritegrated ( ;;usifia li' n

( tonilincd (

eIe It;(:(': ptii er IIIlait to slr've itS (ustl(Ilncrs )y 201!. \\Vith a gen(t tatilig c apiwity tfats Til50c ;1% 1.2110 ntngawaltl, it vill bc the lalgcst Ia ciliv ol'its typt" in th.e wtrld.

1'

1)

IaS t

tilust Iltilitv to wijnioijriee idanm Ilr nttih a plant, reirn(;nxintg thf ttinnmn~ s livritage of iljillatitn. 'I'lle pilant will liel ioatled in onenF

\\s

.Isterl s1t.t tjs i lld will iSt iriseni t he iist tineA CIMI-dfred general inog c-;tpaciti addIi to, ts I pa rt oftI'te I onipa y's scrvice iteritory sillte 1) 1.

1 t(;(':M trt tics% t es at gasiliet in \\shi ii i i.all i partially olrnbisted withI txv vvn atdul umcam ii t) hiIr ni IsInthtit-g;ls, onirTnouly knot,% n as "soiigas." 'I'ljc syng.i is is

Iat'd l

n, i r ite it: iic patiti.iltc inatter and stillir comtpountds. '*'Ili tianl-l vias is tti flived irj s turitibnt. lio: lttt rxaust firttn the gas itirbint p.msss itlirttltgh a h eat reectvery stea t t'lt'rator;t. %t Ire it p trtioduers steat thlat driv." atittiltit tt hin:.. I itwtricilv is puroidictld fitI tm botnh th gas Iitine aIlnd the stt titoribite, hIeri(I the tttitm "tottinivjed (ctyl." This results iti a tlto

,Fli,itt ttivetcioit tft vulerg" fit otl fulel to tIttcrieitv thiat ithl etivetntitinal stcam uit :t ntriI:plas.

1(;(:(: tetilttlg liriirotiles nther advnntiages uecr I ad itilnal plvterized i tal -fired p111.lits. I nli'sit.rIs of 'sulittilt 'ixitle, paliti.ilates. nitrogeni oxidrs atind litt C1117\\ aLt )l b

e tieditet('

signifiBeamIv. (:all (ion diixidlt emissions will also 1ie Iowet.

il.Ilsddition, 1( ;('(' ttt il(tltgy otilitis titi pttntniaI Rl-rr ilttit retrofit of'

alton

,'(ijtxi(l. e.1tplt svste lsv.0c.t it iwc(apital cistand with lower elficuillt It'es vwi itt toniptatv e\\I itl (onts nti.oital tetiriologics.

Al.' Itelits us it is imiltitailt ito conitilne to he..11c toJ lisc ioal it) getier.ltt Iei, tris itt ait vcotoinie ;antI] inore crn-viritnitcrntall! iuespttsilbt: way. Uttll is otI' llititsn1 i ti(t al iiuntidanot enetg' unt k

tc.

lec;(

(

ht"'ti ltoti tgas t Ie pt)ttwfntiaIl tIn pit iidc the:- lowvet c-apital ci

, hligt-stst elitit'it an ti t ectoisziolt th ihara tcintrittic-s ani ig oal-basscd tcdiriiltlttgi-s.

atit Itin ni st tarihu n-friertidly Fossil-fijil teI jiltogy over tie long termi.

A\\Is(ittisit)ll 141htliiatll l(;(:(c pl;atnt.otintietd whit sipltn ftlrsiguiiiaieat itonct-sittnts intt -nissiti-tc(ttlhictiontt tlttihiligiesl at xisting ((oall-fitud gemcnttattng sittions, ttnielsitiit:s ttl (ttittlt'snp n tt nittntt Ito ttal a;s

.it1 pti ular tici-gy soiurct Fit, ilt litijmur.

Coal.

Water &

Oxygen Gasiflier 0

F1 :.

_.I....k I

iJ ii-.

IN NN

2004 ANNUAL REPORT TO SHAREHOLDERS o (:oal/ water and oxrgen are/fd into a high pressuregaifier.

where the coal ir partial/f comnb/ritd and converted into

.!ltvnletirg o The ar /in the coal ci ronverted to inert, glass sl/ag.

o The sulfur ir remioved/on: the stngas andconverted to either elemental su/lfr or sulfuric acid/for sale to chemical corpanies or/ferti/izer coin-poanies.

o 7hesynngarpro-dined in the gasifier is "coled and cleaned f/particles.

o The s/ac, and other inert material rutqy be u sed to pro -

sInce other product:

or marqv be sf/elm rman aged in a land/ill o Next, the synuga pare.: through a bed v/acti ated charroal, which captures the mercury.

/

O Thet syngas can either be burned in a corn bustion turbine or used as a/eedsutock for other marketable chemnicalproductf.

O The syngat is fired in a combustion turbine that produces electricity.

C'-

Stac

__te Electricity Air O Thehoteshaust from the gas turbine parses to a Beat Recorery Steam Generator (IIRSC).

Cooling WVater r

j:,-

S Steam produced in the fIRSC. along writh additional stain that has been generated throughout thegasfication pro-

tess, drirer a steamn

turbine, which also produces elrctricity.

f5 The straig exhaustedf/rain the steam turbine cools and then condenser back into water, wihich ir then pumnped back into the steam generation Ycle.

Other Chemical Products 0

Sulfur Removal 0

Sulfur

AMERICAN ELECTRIC POWER COMPANY. INC.

AEP BOARD OF DIRECTORS -

(thow' Ifftlitt:

hi,!e I. A"......*[,!jI, vilrA~. IHurdiji;, 7~Alidiii (" Alatli., Ltmitdj 1.)jq.wn

~adld.1.

hiI'w.

MICHAEL G. MORRIS,. Si'

( il6. I' 01ho Ili'l

(

1lt E.R. BROOKS, f 7 I.1

, (Iloirmanli :lild (314i.f' I"X-

.x lti

()::.r

( 4nit.l & Sontht lit;si (.rp.

DR. DONALD M. CARLTON,. 7 I'ilfirc.l I', loii Ill ;111-U;llidl Int Z

rnilliv, 0:h:x l.'

kadimi t i tci tin l 1, 11t 2(111(1 1, I' JOHN P. DtsBARRES, GtS IImitsior Pt it% UL11

'I'- {rll): III. It.

ROBERT W. FRI. i.i)

Vi itiin~g ".

.I(,

It.I¶

i. i-is 1.,1 thc itur WILLIAM IL HOWELL (j'!

(AI;.irtimai 1in ilmu.

j1(:. K-micyv (;zompanyi,; Inw.

I ).llailS. I tX.us DR. LESTER A. HUDSON, JR. (5 Prol*-m-r, Nlc(:,,l ( raiiuate Qwvwlil t'7nix-:r~it\\ of'(:Idom-tl

( '11.1rlOU1 Norltl, ( 'arlhia~

.I 9" 7

.. n LEONARD J. KUJAWA, 72 Afla a., (;, orlia I l7: v 11 I. v UONEL L NOWELL III.11, Senior \\'Vi I I', 'idlctu I:'Id

(

v rliii.

I'cplsi0'g. Incl.

1'~~l}-^Nv Y;,rk DR. RICHARD L SANDOR, 63 (Uhirnmnii antu ( :Iiiqf l:x, (llifiv (f.fi~t I.I

(,lhicagto (Ailnll.1tv ]yX( hxl-,,.I.

Im:,

1'llv

'tf..Il)fit'i, f2I1(! i E, N. I DONALD G. SMITH. ('il U lainiill.lli. ( q iif Iixt. ti j,

o. t.ti I'

1:i1oi c St, :I r

'rp.

1oal9lohc, Vil'iia 0991!l f

1 DR. KATHRYN

0. SUWVAN,. 53 VwIdciitil an Nlidr 0-e -'ISvi. ias: & Iitchutr%

i19)97: N. V COMMITITEESDIFHE BOARD:

'I'lc chajiriana is IiNtcdt iti 1)D moIsind 0ImIn IraI; I FcIn iut ilicjut IoIri' NF utI Iiia (ic triowli tlvtu I I.I'c limi In~~l~slhdar I

2004 ANNUAL REPORT TO SHAREHIOLDERS AEP EXECUTIVE COUNCIL-

h.

4/!..erfrol:7. e:rfti~ ba!.,

7dh 1B. IA'ae,u I,i. Ard,-'I.,,'m kIq, tummdhln, *Aw).,I

.11. Ifapm.

~ i:.

1 Il li/h' 1. L ;;ep' I~, Abl: a. I(;..Lht I.. ca'd L. Ai~li2!2. 14!.i I 22wt, SwanI /,22.2)

AMERICAN ELECTRIC POWER COMPANY. INC.

AMERICAN ELECTRIC POWER SERVICE CORPORATION JOSEPH M. BUONAIUTO sc121222 \\mi,, I's..i,I C2222I a nd2I A\\ vounltine Il~i-,r MANO K. NAZAR Seior Ni,,\\-.- I',-'id~l~t N:wiidvS, ai 1

• )l is MICHAEL G. MORRIS sIaimwnr2222, I'2Vw.'h 2)1 :2

( :I2R f 1;'2

%,2

. 0C 1Il r MICHAEL C. MORRIS

(:I.612.2:. Pru'2d22.1212 :2

( :Ilil I.xriti(C ()11ji2 JEFFREY D. CROSS a

.n\\,'i lallt 2

i222 w ' I MICHAELW. RENCHECK S2c2i, 2 \\Vi 2 I'nrt-sid.-122

m,.I 22 1-rim.

'2 I;m 21iw 4 CARL L ENGLISH I'2-,'i2

(:iliflG nt ll CARL L ENGLISH l'rmd~.-

1l :6ilit\\ G... ill, ROBERT P. POWERS 1.-ltfizr %-i(*:1'w-~a THOMAS M. HAGAN l.X"'laiwl \\'-wh, i

d'!111~

['61f irtiAVC'iI JOSEPH HAMROCK Sc2li*2 \\ i,' Ii.c Ii 2I(I'l 0lid, I 22ll12 llaliol22

)1fii WILLIAM L SIGMON, JR.

1o. 4.I :2, 1

1 I'd2., Il l.

t lUeil' I1 1 Ild II% C wtl l:I ioII SUSAN TOMASKY 1 2 2 2 2 1 2"i \\ i..

I're'.i,i c22

.22221 (liiffill:a:l (fllitrr HOLLY K. KOEPPEL I.x-clli2

\\;c I'l2."i1d111 A1:1' I;,ilili-.'-Il:;mz DALE E. HEYDLAUFF sc2ii,: V\\ 2 I'2.id. I.'ii 0~iqrib222ion.222d III(: 2 2, 2.II'-

I

)I I l.22I2222I22 JUUE SLOAT

\\`ic. 'l' ll, idlt-11 11nvest-o It,-lli't COULTER R. BOYLE III S.2lli2 2

\\Vi. -

'r 21id I t

ROBERT P. POWERS I :

ut

,Pwc22 1d \\12,' Pl 2Yi2 2t2 C;

2el

22 i2 22 JOHN B. KEANE N '2IIio2 I ic.

I 2'I ISi It222. N 2 22, 2:221.

(I 2.12

..221Ii.2 22 21122 r

( 1 ".2 2

• 2' 2. 1i

• 2 22 T r

JOHN B.KEANE

.\\,s222:2222 S 2 2-2.r%

SCOTT N. SMITH S.2li2t2 \\V C I',

C r id 2-

.22221

( '11;2 I

sk ()11;1 t1 SUSAN TOMASKY 22j. \\'i2 2 I'rc..id 22~.

F i le 1 2 2. 2 2, :2 O ) 2 1 2.2

.2222 A,2i~,k la t w22-2'2,rV STEPHEN P. SMITH

'1 ;i. 2.22ll22.22221 S 2-i,,,

\\Vj.. P',,jidcm

(.0-ti' t'2 2

, C 012i222. I'L..22,inl22.22221Snr:.:.,;!

JOSEPH M. BUONAIUTO 122 222222

\\ 1 ;, 2 ', > l,,

( 1,2 111,1 21 :1221 (:I i 2 1'

.\\, 222ll22 l l"g 0 1122 MARK W.MARANO Sc ilio2 '2.2l,2 I.a.

h e idel 2 1 '

NICHOLAS J. ASHOOH S, 2l2,22 \\'i2 I' h id'.2ll

( :.2 2

x I ;II: ! f.22222I 2 tit2lit :2 2it 2 2.i BRIAN X. TIERNEY

.52 ni2.2 \\'i,'

I'l ( sid'.1

.1:22 I.i' Al:a2k'-fill VENITA MCCELLON.ALLEN

\\2 i c 2 I 2 2 l.I 2.

sha.22-,d s'21i. 2 STEPHEN P. SMITH Sli..r Nj i-Hil

and1 J. CRAIG BAKER N2.' 2i2r \\'i). I' i

.2 1j c

I2gII!.I2ry So

!v2i(2s RICHARD P. VERRET

.1wIli2 \\`i. P I2.-sid.11h 12 22anqrii2'2iion RICHARD E. MUNCZINSKI N2'2i,2r \\`icr Pirsidoit22

(.222 12,222 ds

)2i2:

422 121.iv COULTER R. BOYLE III

.Sw 2lil2.

(112)2 I'l-sid l,22 0ll-'l'~l(]XY'Iltioll, CHARLES E.ZEBULA S wni,2r N'iw. I'2.'8H2I 2.

I',

2I 2I[,J.i2li,2

.22221 1A.2 1i2li l-..

S-

2004 ANNUAL REPORT TO SHAREHOLDERS stilts (,IfI' o

latins tlli r ti.

v'~

ar *20Mt i '"llpja rcd Nvidi 200(3 and am 'vtrvjew (it o ull btusinqes' outloo'k and fiattauuial

c. 'tlidii' al. ;A compIc

'i a na Iysis- (if' 'lot retaults t'I npterat ivnii

.111( dii't'11"itSoll o'str linait.'ial conditljjjn ual

(

itll i'C nd in thet M\\atng~titiltuii's Financ~tial I)istiussuoat,tan ;\\nalxvsis of' l~i-%fllls oflic )srationts

'tmtimtt of rAppenduix ~\\ Ittlx Ith hoxv Stailed incitls. App-nda'~ix A

rnd ttts Foii 0 rnik cn'~tain rilk 0oar L.'tilit% (OpseuatilI.s. tlh

'e vc bl' u

si~niless, hadl A1 year ol itittittiut't illu~tiplIvT1n' at desp ilte som' le 11 TINfio-abl '

opter.Itinlg condaitfionls. Oar rtitillt fariii-lit

-ar rtfit-ct the invreaseal cleinatndi-r' 'II ur hidutdiiial viitotinlctsan tttj'i sale groth~vl inl lith r'sid(etntial a111d (oir inwcial ctlscsi. 'Fliesc.

all sectors. Wr a I-t) real i ed a au-stivt evatinting. imnpact (lil rtcir va rru iio tosts b I st rIan'- 11(1 i'

t~'

It xas. Ho 1w-tc er. thest fKtsrali.1. teiiults Nwt-ic lii.t sficicuien Ito olfbet tile-al-it-nec -il'tit-c~lt ale pacftity auct'ion itiIC-up revcnue7 iii 20II11 ;tiltu liglhur plantued plamt mtairitteiance-and distri-lationl vswnllt rkelialility imp~ roe nt wmk.~lI s 'ik dltijottaly erctl otr rt-vnic ltivb-low t-x~wtettdt no rjw I t ndll a sigutilieati late-ille, embeir itee s~tormf iii parts oFf llur caster cr1territory i--rva t--

on r storTm danrimtgt rupai r op~ erat ion and urnai ric-utalittt expll~tt-S.

Ilit Nlav 21'i-t. wtt a.muni.tu cd iith ri-trganti/.aiti~i rf',tr disributioni aud lo utit-ier 61crviie op'erationso int11.-

rcnt-flit h~ainl tit dlivisuion ri r-sidrms titlandichir.stupport staffk.

WVithi this utes sitrlulutin.

%It b Iavi-vrvaied str'n'ulgt nuiliales i'% uItntti ilul-uhldc-cioril-ntiakirug cirisr ito tile. ciistomer.1nd(

ri 0c o -lxi 1, 21101, we integrated 'tm cast regio n tratimntlssiot arad gentcraion (,purattionst coinnict-ral pr~i-11estes and datil a Si'5t1-isnt.' Ithose 4 -FPiM. W~hiili \\e coll-timttt ic Ito own ou tranfsflm~istio assets, osc -'tul lowv-cost gell-c! tioi n ltnut Ito setv(c tt hueneds o.'ouar niat iv.-'-oad ctusgtomer~s.

ttidt %vll availahble grm-rtautiotu to oII ler p~artie-s. vt-art-per-firuitiag thoac Fmfiutet.

n Ilmr-agli 111M.

1I)tuhittg 210M-, %Is inrt her sai) ili-le I nr fina ncial stiengi Iil Ibv:

murfleui u signlif-i ant asset divst-iit ares resm~idnirg ill proetl iti, oappi oxinmaw-y Sf4 btillion.

• ,sitIg II the va'lII sit-t IruIt or;ase-t divestitult c-tll rttlrlec-

.MIutttauirling dlelpt, n-iultiing itlltit iunIptiVetl tlelit to tntkal ca-pital ratiol,'5

.Iat I )i-evuvit,- 'I, 2(1111.

• Staltili/.i ng our credit ratings as intlita ed bs Maclu'lss Ita ng.: itl oiutlook frotn 'stallle" it) "pj sit iv ill Aut.,1ist 211{1)1.

Wluilo Nvi we r

\\ Ixt remet ly smit t-sul dIaringf 2111 1 ill r -

dtueing tawr tiutadimtllitt ulelbt 11tti t(it: Iuclautc(I debt to ut ailal ratit' frtou l;I.i; `-, 1..a:. I;-. we lute1 siguilic aint * -jpitIl

• XittIn-dii a sItt prnjetttl flii tllt Tlvur-ti at. lurtrotigt a coltrlllttintitltn f'ca-slh genttratecl tr'n us' petatiten-s an')l pt 'tt-tulls Crutmu tar aiswt dlisporsilins e ctpictp 1(t tO laintairt tluc stretngth ',Fitu bjalrut scect andc1 Fittttl 'itit tapital wxpeunlituru piirgraar.

Mlier tie trlnpleltiol cif'oturi -lnaining jilutnntlII divestitturcs anllI altel-tille ut silts it aliur 'I;.us truc-lil) prioveteedilIgs alt:

linlali/tcI. U/

Ilit imp! to ul cornti-td to the b. 'ard gradlual.

stwstaittalle iltirttsr s to t)ur ctlit-liltt V 11 jie pr s*hare qua.tr-ttnstl '7'm'ullmtO' T tk ivitidrucl. itt1 d'me ariv 2(.1.)ru

.,tir I 'art I' I)irettars autuuorizetl tus to eptilult-hasce 111) to S'(t I rmill-i) ol l'ofitr counmt'in stlok Iron tint' to iiuni tilhtrlgh 2i(l6.

OUTLOOK FOR 2005 We riunain i6usd(l (trt tlhe Ilintlamatetiml acauttitag'

'is.er of'ta ur Utilities. an1d iwe are...nl.

nuniad t-o maitllainitg tllt-Strtelngtl (if' lilt f,.tIctt Sluitti. ()ur st rat egy l r ach i.t-vit tlltsv gtall is wiff 11 l t;lllet.

r\\i *xpertt It0:

• C(lCllU'I t t-l i(dentil;;

j pllt)ut)titas tl) hi-Ofi rte tte (t-li-civi't(y' ol1'our operaltiolns ;1nd1 caplital e~xp-ndeitulrv programll.

• Se ek r atc Kl aTig -s tihat ar. Kiiu alult rt-aus'tml.ul anlt that all. 'is ts t.t maIk the Iuletcsa\\l (ijtratiu uafl, rfail Iilit v altld Itivitiltmiulital iluuletV.VltItVtl SISIt' I r tSWIt.

• 11 "i

n utl rti ag!,c gtTutratinrg Iliciliti-s to lIn wrlit vtt (listi' 'Iers ;r Itto uan naxitu ize tillf-usstien u. lt's.

Sticcssfillix opltr.ate Itturcgildlatei iasrst-incltls Sluch a1 outli sil tid flanrs anduc u ilur fa;Igl antd riser trallsport grolplls. \\%lich c.-llp~tlenwrt ou(r corc llity operIations.

f'urstut ilt' cTiirotnl mental Iv riettll:.

st:-'lFthc:-tutt

'I I l-all: *uexert Il teftss. (TI t ain riskls aniId tlttilettges illtelutitg:

R atv aItivity StucIh IS tht, AlAl' 'Fxat (C:ntral CutuliualI-

f(

(

ircie rnlte case andI tiut: h'llit St-ivs-- Compan y

of ( )klohotna la tc cawt.

(tutplel i ittl to tiln asset sales. inc:frlinig tfut teullailititg

'I'( :(: cm-rationl ;ssel S.

a

AMERICAN ELECTRIC POWER COMPANY. INC.

c1 :c strarirled ge ifuratfo II co'fi I reiivc IVI.tI in t I inig IIt

g. eratliim ccent itiati.u. wh!4c'le'ale (ajIlt't ailelt rtru-till, Ii'l-mnid chiack IinIrazi~itiot ctharge. and re-Fuei.l coq. vtlatilitv and fild CI si; rcc'.vetv.

• FillalIirt(-i and rITVIieitg ilii teW~t (-'11capital etiltn-lid-RESULTS OF OPERATIONS lii 2011(1, ;\\Js 1lirii-cialml~

o rating, bwijjitvs' stegilietts ;iittl t heir ntjoijr act ivii ie% 1TeI.

• tIit( )I erat-s ir eiroin fcs:rii o ac oria 1Domestsic celliriitv 1(,111 SIIINi~i~tit S rid irsatril)(tioil a ru~t i

.livw i'i x

Ga

-iiwrl'nimir'

• Inxlcs('tmo ints U; K ( )pvral i *ins

vilivrtfionridtItlticrj it v in I fie U K 1r sa vle t C 't;il pt'tl Inntt d ;ratlpfortati'mt tol mni pi.IiltS.

• Inlvemthtilllts 0dw)tir:

ittdopeiidrtt IJm~iSlfir.*ttiv.?iri fillet '-ther uncirgy ilijiX-l ilattil bmitisjrtt..t tiiconi viii' tI!.

I )isroritilitied ()ptrat i..ns.

I'Atraordi-nryf t fitm itrtnId Gimiaiive [ileet uif Acc,u ntin", 0liatge,,

inci easeld retail niarginis ltt. sirandijidr gtineratim.i carrying mta i ginsantd h oNvr ini pa ro ins in ut ir G as C) peratirinsttnd Itits mentrtns (0)thterst-g nclts. Igailits real ijid onl te salt. fit as stq, a:till osNer I i(ro iii,;s 1)1 llitjaltics flii(loilehcr ex.alstI t.o-.ket I at the Im.1 retit corl itmiiny. I'lHl inuretl mf we re (.1 I,( t, iii Iriw, 1I.etrtaseullmaigim (tile, to thl ('tivstitulie uf ie'x-as gencrationt assets. diti lwss tilihr valfacity alic lull tritc-tip rIutetntle. ill T( ;li. antd(t hiigh'tr opera(ionil arnd1 t ilttenaitee (xIitwlSt'..11 1(.( IlII-irig in

' I;iitityi C )p.vro tions scg icnit.

()Il Nelt Iltonie I)ir 2(0111 ol SI,ll;') mtillioniu, tie S2.775 pcr share, il dtides intric, linet ol'tax. (tin distontittted o(p)-

erltiotlls oi 0S3 tuilliin. risiilt inlg Itmnlarily ivoin a. gain 'in the sale tIl olur rK

)peratlittit, and ;lit extititordiiiarx; ltos e'IS121 titli. iii, net 1 Ia>x, whict w1)te siint' a roviisi'm Ii,r lpitttbab dtli isallIowarinc to tl,.- straint ded cl lrltoo t rctilatalov ss< to (ll (.(

Itsitil (Il

'illblic It ilitv (:oiilulissitll olit; xas iordti s in no.itt:,Ifiliatid triut-li 1wrocitedings. Ciii Net In-tolm fir 2003tli 01 S14l m0nilliorl. of1 S(.29 per shairc: incidctis.

tI StI

1) million1 I. isri i lid of-lax, on1 diseontitiit d otialarjilt s and Sl!'i inillioi ol'irtiniit, nct tl tax, Ir it Il t

• e cunililts-e el(tl:t ot'ld Ilatlg t littlrtt niiltititg fior asIst rttireminlit *-li-galioits arid CotI, certain Iitiiatt ACM i rs.

Aw rage stharis itllstandiri.g intrearlsi to :;!llB niillion iii 20tllt lioion :1815 millioti in 2c1t03 dIllt

1 a

otollnen ktixk Isitari1CC ill 2t:111an t2'0d ommtori sh ili islctt rIcltei toi o111 incinlitv t(onijelsF-iotilon addts i

li ifinnal aseracr slIr tl s *ltista nd ii ll tlt t react i li lr 2lif) I earnings 1*r sl lit re Utility Operations Ili oi t';iitili vO)vraiitirn.r. I uroillc Befliio I )iscolltoiri:it

( )eII trasit.its. I;xtratrt~limt%

rlIte and CG ainnative I

< t (ll (t.untmng (21..ullites dee re alstl SI; 0 illi.n to 51,171 irtiliouio ill 21.101 plimlmlai1%luei tif ali o

l sait eaulclitv at~lititi~lt irilt -ii rl\\( lffes allld tiigiiei plfdll'tdl]\\

p(l Fl\\5 co {sio rcsulting Filom i le i

p*tiiafl -fie rstituire ol'a 1)pitittrl (ll l( ( 's geliltlatitill ai ls a1 %al iia t n l

r.rlraifitinr ti rvtitil (oiictpt-litmill it Iecffs.

lit at(dfiition tolpeIratirg iXif1n5'1s ittllaStlNI dtiit to IImghcIr plailifedl daltm mnaintenfancet atd dikitdittiifltl systcul ietliability werk, a. tell ah storm clunaag reltair clu-it, malijr ifc storlIms ill our ()hiom str\\ ircr tvi ritorvs.

he dI-I:rt(as \\er-(. I alt ia\\i l oiliitl il' increamld I lit Idnaand rusiltitng hurmin ifit. tler lisage anidta lsteilner growth it eli -reisidteitial ttiicd crrlililtlrc.i.1 vlissvs. aIs well I iiigt-ttr tteiim:nid alcro5s Ilmost (cIla'('S *I 1115t1 niers i elhi(ttirig dlite tot on ic rucovoery in *iir r-gi ii. Iln adtIdlitionl, ss\\C Iremgmi7e-d ( :arrvi nt.(.c sts fill Ioexis Strianttdedt (Aft Rt(:tt 'vrtS. wt uitli ltitt:Slct tilt' ficblt (coilr)(inttt il caiiirvinLg (losts at rttie( In oi(

( 's not stranticic gel teratI ltRl crstS anid its t alfatity all ftion t rue-j)

UTIUTY REVENUES BY CLASS in millions oft dollars)

Residentiat JIC00 1.000 -4tnD rt lIEU 71 lInE 0oItee 04 03 Industrial 4.000 3.000 2.000 -

1-2--,-

n-m l~ -

04 013 Conominercial 4.000 3.000 muff;i~

2.000 tnn s 0-04 03 Whtolesale 4.000 3.000 1.000 -can _-tt 5 04 03 IR

2004 ANNUAL REPORT TO SHAREHOLDERS KWH SALES BY CLASS fin millions)

Residential 90.000 70.03C 90.000 04 03 Industrial 90.10cc 70.0cO 30.000 -BIB0-4'(X-i!

04 03 Commercial 90.000 50.000 30.000 -iIt {.Fh 04 03 Wholesale 90.0c0 Egur 5D.0joo lu t

33.0ccU U

• J:L 04 C3 aswi2.

%.Vt.hIko Iwi.rieIiit-d Iromi, 11.1 r-vawd inwcrct-vlVei Investments -Gas Operations (0or I~,,

N l'

i:)sc ingiintitcd( )(2I 01 iai

s. 1:~

l'xrranrfili i ary tI 0I

(

i

)

t io1 j1'ltciwrcam,(c S23! I niI~2 Mon 1t i

tIillj on i I 211111.('1-kcv Iri~vr oi ihiw &I--cjs. %\\a-m'i5 nllion, 'I niifi tiC di-vS.

s-ilirolctxI n li ~itl-Investments -miUKcOperationsa~21.-i uaimm h

sIl o1 lcl W!

it ivre ij2(21 1miston SgIcilt -1hic t:Ioi'ifmitly citrim. l hil 12 21C12icts.1 122 1 1(v1,ttir i

' na11Itilliua l -:siii 2011 lwt (li i rI1VN n.n K.

121 i.1 S'i m

Investments -U Otperain I (for~l 0'(. Intsn tiU 0ie.1wrations

)

g;,: iritj l',

l ctliur ifina1x

.S, I kwfljIII(1 it-dt

) r 2ln:

IIjl~21 ors; l tIlltMir mi f111 jiri-C"11lt1 1112 11)i II d Iinthd 25 g121 nco2 Nla t'.

l,1i in'1111an 211.1 2flI01 211n1ll((

witt i 2(122 o'3.3iilin n203 eir h

IFINANCIAL CONDITION W 2! icamirc2 otir findriwial il01'llitill. 1I) II.

S ilsrctiwlth 1122 ir I)h.11a21 SI lshtI 122 Ilic IIII.ic~ll~idit y jl2IiovId'll I v otir itih I fI,,'.

Mirting 2011,-I. '.'. iiiiipl, edull fit1 1j212.iait ()tfll itionr

12. 1 *l

\\%'I tim-vttd Nb2. i 2-trnidl 21:1 Ibv S.M;0: ntilliort. wi-iIni-111*cillmit-* S2.-; Ijillion of I JI-tcrin 111111 rr'd121iiil)6oris 222( Itiding rIjiiiinail nticnl~ tionts111 stidt wi 221 oir woheIlad

• llI22212lndl( 122idcd t77 il tliong ofrns't inatiritics.

1121itl)(k Iii A I 1' I ri.'s rat in-g,. \\.'. 113 tIC ralted m~i1, lldir-Our S2.li I~ijllio inl 11251 fl,'.'.s frlont oili'r-lions112.

1-)221-Imin~d, ~itlimcdul 1.Ins t2 r~icloc I0221c-l1rjn1 d'bi Ina SI.11, b,1i~llo AntI sholrt-tvirlrl d111) II'. ST1t1A 12m1 illii.

in 122t-5 initn11int of(fv(

11ittV Imitl l:in (2,1:1. 2lilisv-tlgi ndlt1v l22im tel its2122 to I

icoir.jivt, I xir5ii (II' 2011. d1 11g(

rtI.,(Ill.)rv rachiit) i tll(- nd122(C-2I'Midil 1.1.2. and IIW issoanf(e of ~ ~17 mTilion1o1 iii 22\\S r12222inino 4illiltv :rc'Ilawd

-I 21 irit-t-Illivv conllflnl'121io12 ll )an's;.

it.*MClts"1(12ClU (I Ii'dw2(121 I'hlnfl1~1 212i22ig 201111, ise, ht22j1o21 d I'l ir 2112i( mlfli'11 iII 2(21.1 f11i2 oulil 6169 Iol 59. I.

CAP(TALIZATION RATIO I,...

L...

v

~~~~~~~fig,<} b.¢ 2OG4 2003 O Debt

Equity Debt includes Long-term Debt, Short-term Debt and Preferred Stock Subject to Mandatory Redemption.

Equity includes Common Eqjity aid Preferred Stock.

I

AMERICAN ELECTRIC POWER COMPANY. INC.

CONDENSED CONSOLIDATED BALANCE SHEETS Al I)ecrmbr 3'1 (In Atilinns) 2001 21;!':;

ASSETS

( )ll lid (i vS h

rt )l 1l I

i,¶)2(

I.)"I 1'.aIu'

'I i I 'i i l Ii r i I

s:7`i'7 I( I I )

\\acoirit,~r~i,

\\c i'IariN I

iI

",uITIn 22.i I 221 1)

( )t Ii r (. in rwrc l A\\ssts 19 12 12.93 I'l-u i t -i I'l t

1 iand I lhiig-lnit t

' i,

ii 3 i i

i..

I121 I J

r VVIII II l).ia I

il IitioIn Indi ;

Ir.miz ation

, 11,1*h\\

r.il2lt(1

, i.,cI hopiuir I'i.ii t

2d1Gquipinciii 2 2.00)7 22M 1 7 iiiiliil.lLj' 1 '. i:\\iY'r iii)[ Si.ck-NriSi}'tt

.. aa1in)Ic~~u.iuii

.AiNsvI ;

I D l

iv lit

)IIIill I ( I p ait It.1 I II It

.d

[.1 Sa.5 7

1 Wicrg Non X

iti-rcm lit \\sts 3.6. 1 :S 2'j "I

'I ot;l

- 41 jt)('V;

(.

l UIABIUITIES AND SHAREHOU)ERS' EQUITY

.\\,(.,lirits h1v;abiv1 t1,0(!.;S t:.3 7

S11,11.Xewrill I), t andu bil~l-g-l irrm Dch t D);cl N\\ilihiti 0Ti Yva;r 1,0?,'

2.I{ 1

()Awlr (.irrv ia iablilitie s 2,t.i 1 2.5 i l!

fxIl.on -te l ill1)

Dc1s

,JII :

1 2) :;"

11). 'e l r. (1 lwtollic Aiaxc.

.1.1 ;19!

3dF,9 Iteglat-.l-.

U~ablilitiv'>; and I )v'l;'l'lricd Iestriltllt

'li-r

( nditl

2.5-10 Uaibiilitit's of, D~iv'8llfililt)(A Oplt-1.tionls andI~ htld ll61.

S.l1{c 2.'-()

)thr Nonkv m-1rt nt I.i.il jilitic s 2.- Ili:;

_ ?1 1

,lilal Uaihilifif s 2G(U0t;7 28., :1 G 0miulaItivcV 'll

r i cdSl..c......<k,zoI slll~jcc' I Nl ot, t..\\;ltdl~itlp!tioff'llltiI G I..............

iII

(:o,,]llmo] llaw Il~l!

5s I;ti8 7:S

1.

'la~lSl tii I I, G6

-j3678 Flilldi..cl.,jure oJ alfiriancialinjurrination is idruded in Appendix A to the roxy Staternenl.

I

2004 ANNUAL REPORT TO SHAREHOLDERS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS I alr lI-nded IrEr 3/

(l,1~ll~tt-liets l r S'ihare.nI oun l) 200I 21 il)A I,%t I cII 1I1J).)

SI *1 667

S I 0f.

I ll U(] 1n Pu ircl(u lm~t (IVcrggy.i.

i,;I I 7

\\ Iinto-jaut,

.111and 0tlh,'r ()jraikilii II fl'I.]

zwiIn pairi new i, and OI( tlitr 1Rciaid Ch1 u!.ws G;50 1 ) ;prcciati in :irid Amrinzjatjoi 1.3(1(

IS i2f7 OI x

ht(,)

liii Iii I in

'11ie I iI'aw 7 [(I 68i I 2

I '1.iIl I 2.0Glhi 12,~'14 I I 7

)Jwnrating I am ati i.t'( I 1.75 1 23 7 hi,,-ri'i lilt oNin 23 5 Cm~ I I

\\

i ing

-i, 1i iAlrw St randedi (5iot Rvi'-sive'r,

i2 012 Gail.uin In )ipiistii'nid i

of' IiIIV Iui-is1tl'iiits Net Is: I15 Injterc',t arcd (0)Iuur (hau-gn';

7117 81(1I Inilrntij a,

523:

2I'1 lnm lwlt ci I )ims'afijrmudui

)pcni-ainiis. IAtr~aurdliiai v Iwnil anid Comu~l~itivjv I~flect oll A(( c unuing. C Iiamge-1,1 27 322 GiIFS I )ki',iitiliiacI 0 1 autionn',. Nct of',i Ii fl I-' i ru, ioid i Iiti ' I 'o' ofn, ~xuI StIranidtd Gost RIwn-cm cI-Y N I of *Iax 12 1:

(:12 1'

.13111i1u:a14 c I'fi:1ut of'IAcenunithmg ("hanig-s, Nvt of'l ['I-u I93 I~3 N"t Incomuie

>I.11 S Iii t(ui

~\\V6,.~1acd Aci raqci Numberui t'i Sharit, )0uwta)fidiul:'

1 (.:i-5 Iricuinc 111-16rv I )i~cotriinjail I ),'raiiuam, IAIraordrinar' Itemr tiuiu I I fe i Iu I ncI (I(

)Ija : LIimis, Netci I' F1a-x 11.21I:

.. 7.

.78 FLxtraordinalniry I o s, Not (it' I '.x

0.3 10 Cmtfathtu Ia- ~hc )'i ;\\cro'tining Ch1anages, Net af '1 hx rIt.i Nut InicomeiI'l'.$2.75 SU.29

$~2.

ili

,1li I )i\\i eidt-c II';ur hlid S Iluaie sIll)

SI.t651 25-P-I

AMERICAN ELECTRIC POWER COMPANY. INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS I har lEnldrd Derezlmar 31 (In Willioms) 2004 I

I OPERATING ACTIVITIES NcI I no-1t'1148)

I I HI'I : :1 IO-n K'; I A~

Ili D-s 1o I )i( rsoltitU Lu(I 01 wuratti( IisthI Iinvollto f1mm 0natimiuiao'- ( )jcratonos 1*)If71 DI)cncciantison antd Xioortijaiouisi 1.:;00 I 907 iAiivi Impj ait nucmi, li '.c-onicin11 V~Idwm' Lm~sss anmd O )mher Rtelatd I liairgms 1 5 72?'

AtI~juitinem s aitt r 0t)hmer Nmnnc~it Iteoll. andu WVsr1;iug (Capiual 2 7(

2.1-Il Nv[ (:;],;II 1 w I r-onoC)p-0

.cin io.Activi tics 2.5117 2,3118 INVESTING ACTIVITIES

( uil1stm-tmctiostm

,"X11i(lv itiII.'SI i.;I: -

(:iomt'igi in 0)hmer ( aislmi Duptssiti, N-t 3I

9 1:

miN141)1t in Discmu0mtio1i-d I(.x-ratmiots'. Net s'

(; I I'ottdiIi. sn S.1nc of I

.:512 C0)iler-f1 Nel (XaNhI FI-Is IUscd ll-i In~it.sing Arij'itics iI.0-FINANCING ACTIVITIES 111,:nt1 t' of, Cmtxton mtno sinock 1

(A al,.tn-in) I.1mgo-trrinoII Nct

1,1.O2tt; 2.051 m~(

i-tInt11

-I' I'r-cli-i rcd Stuck (II.¶ I\\'u.thumcmno-mI'

~ NMittsriy hinterem t2 C Intrtnc: ilt Shot t-ts'rmo IDebIt, 1().

'2,78 1:

1DiN idcu-tds I'.tid oil (

111mnotn Slots K t,)-,.

~

6 Nut(slt I lows U~emd lst Fin ancing :\\stli% liii's

2.7::137T Nct 1Devrva~c in ( ashil and (Ca'I qmi.;Imts56 I (18::

( :asl anid C ah I~ninmivalonts - Itcgirmmirig lif'sm-iod 0176 I 1 I Cinsdti anm I Ca-Sil Fcjuivanlt-ots - In

.of' PelI~riod~

Si12lt)7(

No Di cI

)mt w in ( :isi ;itim (:id C x D1~Erpix-alcmnt, frm D iscommtitticd OperationmnI 3

S I.

(%:ldI atis I (

.mhIqiivadcmnts Im I o

issmkottinrtt-d Opcl atiiolis - IBsgiunlilmg of' Pmirisnd I3 23 CnlnI.mI n I a

IIf LSII 1.1I I Iiv;a,-III s'nt r I ist 1 ) isci: -ntIitzu C

)jt'ra t i o iri - F, ocI d cI' I'uri-id I

SI I

2004 ANNUAL REPORT TO SHAREHOLDERS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

'N\\

VlIIavv a IitIiiitlv I II~t,',I It~I lHl cd~te I al I it vSltII eIs k IdA iitcrican UtI it I.. %%cr ( :,)lI~I iv mt I

I.

ant v s IIlisjeii d

iciompanjivs.1 ii ShlrlIl(ilolIicryl cqlitx anti t(itipri'hcnsivc in( uonc :1s' kIor.'

I i 't Iad it Im-wars ilII lit periodtlld II cs ml 'cr 31. 201( 1.

also II aIvc at1tdit( d IlI III.)g InciIltS I~Ssnn Il( II,I I e eftk:ctivvnce.s of't I e (

o(Jillt IitI s incwrnim ctimr-IImol atnijalI re porI it I aiitlddci;k I

it i\\~ rI it

lls, Ii d I he III ffmlllV$ itIII emaf irnt rcil Iii cl I f italicialII(I o ltitIii a~ of' I )rcei rii or: 31 20t0 I. St IrlI J,

AoidaljIt(Il fit~llaniaI

%talvlel~lrit.

aI.

itstitt" w5~ssl1Unt oftefl t~ivsii1ensi orilic Gnri~rlpan aititil ulI rontrol licer finaricil icloi~ll limi.iicl Imir riporI ilI uhiei-,ii ( tl ed Iihriiir\\ 2(1. 20o(."..X) vs)t'Si Ilg Iln offlhl 1

ail fic( "iofiiiI on itld i iIIAItI ing (--,ldI A I IJr~

Na pmgrapihi ri f-riin jl

) Ii I k adjaopti oiS' I 12 (oot I%%il laiid Otheicl Imiangibluf ASSM t1< S, F\\S II, "Anixioitiuig kr AZsci Kciiiivinrit C )IfligatiinC. ["Ii' 102-1 'Isiit S Iiiolved in zAniituiiig klr Decrivative (,rnitlatS I 1cd Cir IFrmling hlmwti,~s anti Contracls I nvoh etd ill I lir-g

~

It.oiii di Risk Mt1naulvllen~

Activitics," FIN i.; "( :oiisdidauioni of \\ariabeic lntelcsl [.miviiiS,`.itld YV~1, St~tl hi'sition No. l\\s kol)2.\\t i ntilg, and Dkielo'iire Recqoirvmcitmls RI'latci~t) to ilt-N~it-icae~i i-I'vSt tipt limi DI tig Imnpr-ownivni IllIel Modcriiiatiuit ~\\,i oil 2111 I.- ;vhfillh lrc riot int livii Iwd -irt.mr ate iiitlitnn itl Appeanirix A\\ it tlti pirowN slatnwi~ilt tilt I lit 2001,antiiiial t'ttlg'sittiilll.I'hcacvoiflpdta Oiiiv iitwdend consi.rlidica~d ftinancial tI wnnh nlls ar 1iic lcSIfol)lliliIX of'd i

Cli mparn y~ii', InatIlal'enliclit. ( )url lt-plI~lSiihilt\\ i; I to

)W.p-,S allojiiui OIilOn ttli C(Irtldi.tIIti t.1Ni~ili Ill oult oilioni~t. tIji' iiifiirii1.fitm %vt1 irtli in tlii accompanying t ondctiraed coiasistiidnus balaitie shlkis ts of I ),i'ln-ber :i1. 2i(:i antd 2013. andtti lx rti~tdond:oivwdi~t con,no~jlltid statlicli~~'t,i oltiptiiiioti't alid olt'c'MI fiowt Po Ike(- \\t;rNr tltIzI

,i.Ii fis irlv staiid in all imateritil rvspuc i~ in wi tioti io thi: basic I orii-lidaikil fimucaiiil Stalteri0tiS11 Vnitm %Ilihh it lois, l ivuilris ii Ycliriitirv 24, 2(111 MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING 11wiite itliII It l,\\iriiiati I1ectir Iic s hmr

( oimpanrl, I nc. atid subidiail~r\\ t iiipanirti -AIA't is t-esponibxlde for vi:ab~lidtinjg aold Iitlaiillaiining al-(tlila' itte, itcial t ointril i5cr finatwial repil-ling.ts stli form is clelitie iii I\\ole Il1.If ai -15l;)a miutoler liii SellrIIil is l>.whlat cn Act I Iti '.I, xis airiedt-dil.i'I ininit'ri c11i11r-I

%Stl lii wsil dft~grirl Ito irovidr irt.imoitilc nissmuitil:

igin Ini thae i

i o'in ialf rcn-Jtirnt. a111d tIlt, pirteparationl u1iinaiurial Statfiioattls fot lcxtertial puirpo~-,,

iii at col-4.iittn with gtunt-raillv ItII at i

iu ltriifpcs.

lvt ahs fts iiinhert-i. liniilatiiiis. irlil rial t olltiol (vtII finianicial rt-poritiLf imay lnot IiTNntttlI or dlelilt 111 Oitaittlivit.

Alst. iprflecions of, a11W o-akiaiutiin (IF vi'likt: ivltss it, Ijiurlc perimims ai :sicl iet- ['tlit, risk that ciimitrils mln bc, l

fitt i

, ixiad-itfilaic I IIalus'ie oliariges in condthitmvoxiit that tht dtgrit ohii rnldianric %s ithi dwi p ditics 1)1 pI Ii wcinIIt,:s Illav lhut ioratoi.

IAll'fl~ltlcl ags~ses dtil.

elw -ci ivtls'itss o' itile 4.njal' intetinal uitintri ii o-er fiinaintial ii tilig, a, iiiI )itecmIitr

3i. 20,11. Iti ixiakiwnsthiis *t,w,5sifctltt Nlii c tisetl ci riteria Set1 1, tli liv ditc Commlien

)I' Sponsorinlg 0 rg~alizatimiS of liii

'I t':calds.i ( 0 om11101 isii i

(

)SI) in I'dc mal Gudro!

bid~r'jj-dIFunrr Bad

'll tilt a ssili~itIlli

Clilpalir's hi t' ni io Ifmlnt1 o\\i (iive fiaiiati~il re-porim wusaS e'ltli-ivv xis il[ D~eicimber 311.

2001(-.

Alsitidtlptel( lent relgistored publlic iiciuniting firml ibas isstid ii'I t ailctstlimi rqip it 11 noffor al~scssrti'llntn theil (O.ilr-ltmll~ 5 intirrial ntiou I.nnovi-filnaivima I if ptrjlli.. 'ilie Ritjiirt ui iitdi'jit-ntrint IZcvitcrit-if Pibilic A\\i omlingi: Firm ll.1ipc-ai it)

-\\pvtdi Aif il-,I'ox SawIm

AMERICAN ELECTRIC POWER COMPANY. INC.

SHAREHOLDER INFORMATION CORPORATE HEADQUARTERS I I\\, IN.

'Ij c I I'i a

(;oluicnhis, lift 1 17.'-23,3

1. 1.

I ii.iitoo A\\IA' k iiilumpolawiid iin t~ip Siaiiof \\ii Nicci ~',k.

ANNUAL MEETING -1Ili

8Ii.ciimiai inveiiim-, ol sha~re~uchlde cSii Aniiiriuali 1.1c'tiic J'owuvr (c.riimin~ %i" Iw lit-I at 9:3i aI.

D ii.cINI

)igh4Ii Iifitc. I iicscILiN. !\\jitil 2t,. 2005..

at thl ku ciiai-iccItils. IHoild aircI (:om-vciitinil

cnitur. 181111! SOcItIt ]l7-ill, I

:bt.Aciiim ci'a

)killilcliit. Adfilkiiiyti is~

by tit kut cciih-. 'Io cI'ti

.11

.1 tic kci. jieisiuic IiI,.

ici~ill,ljcill, ii:. thut Notiiecc l'Anii liii7.1 %iciclmcil iniIcltc.imai :ilIcilciur. ccl call biic(ciiInollv if s~lII-1

,Ii, mcl stiui ~:is I'. Ilii1. Iitdc daIcrlcr...~

Iii~Ii~I'fcr INQUIRIES REGARDING YOUR STOCK HOLDINGS -

lwgi1i tcrc I shiiire-lc

le~

s~larce' omwnci li bviii. ill 'v-ciil i

":ni l iicidc I clildut iii:- ( ciiiifiliiivX Irniii~Ii ilec lit. Iiktd I Is lct:

if vfill lw Ic'm,cetuicwaiie, cliii I Ilpc dccividlc-rdc cLs1. andi ccilier admcliciiitia:lkv, lm~icl~lli. 'itci SIiniid iiil%(at N.li Sl,-i:il scruitnv wiitnh ir wi acw ciilt riiiiilur ivaclv:

iii' inmlllh i

1'ziiil~l wit iccth ii 1crt~

accci dl.ic lili wjlicith c

relshn Idt-lch TRANSFER AGENT & REGISTRAR lifrc id.ice, RI' i,29 MI3i1169 I lIvliwluc Ini.mired~,: 'Ili i: I-l.81t.2:;23.t J5 BENEFICIAL HOLDERS -

tI, I [;I-Id iii aI Ilixik or-Iciokctica Ioglici.

Inctillli

IuII ird iii a' Sicc rt N.cirwi.*

\\Vli vcim ptirii I.t'u iciik andi it Ii Iwicdc lot xn

\\

I by \\tccur Ii~ki:i s~ hi'iec idl-i i I i lio

'.Iic-uwt ii.tinc* or aI *Itnitiej iail laimr.' AILA)111 iici kncii ilic idviuiiit~ ci ndii duihial Nlj~i,-itjirhcici m %icI, hld.

tlicir sharvs' iii tisi matmilr; ut, 1.iipjl-v kiicw thul it irciker hiold, a c riatin vaimloiiI oF shares whlii Ii iiiwlie\\

hrf;r afil\\ titiiniir cc'I II.-

iiiiiuicr.

It \\ciii litclI cc ir slcic, ~ii mtieo nitians, \\ucif reciveal Nwvi~ I okr l ictiie~. ii' Nouir mliais die( heldh ii ll Iiillis 1

ei11c; cjIi':tioius abiIcii cc lauct micll. slaioihl be chirvocdit, \\cc ciii bcrikir.

INTERNETACCESSTOYIJURACCOUNT-I! wit ii-al ri igi~iiirec di~r ho1 l); mulIt call a CIc~s ci tiildI~ii~lliion tliiciighi lice liiitc-iiii ait ccccm:u1ijlmeccii. Iilliliaiitmiiii abcuit ccbiiailliliv, Ii hccum-ciic is avail.thi~ 101,Il-he *a*

1-8177.1-13ii!-27.

DIVIDEND REINVESTMENTAND DIRECT STOCK PURCHASE PLAN -A IDimd-dulif I Ri-wIn-siliulit ti mii I I)ii cct Stc ik hirc iii)I~c I 'Ian ic ivaijl,chIc iii lii1 iirv\\-Stoii It is iieciciiic an clin tI:1 11 c'11ciimtiii ivciiiitd of puii1lhilasir:" c'lirc's ccl' A\\IA'rIc eccinhi ci ock. 11iiciiiil initiail icahi miimi.iiiii~tw.) c h iiI~i.atit r

oc in cli-raniieiirii atc.piiiii STOCK EXCHANGE LISTING - 'I lie (ccl:Iaplam\\ rlmimlli sit.,k is tiadlucd pi illcipi.ily iti ill.: NX.% Yolk I

Stc,.k l YtiIiihllc-nridt'l fdii ti' t-l rS\\ In1,In))AIJ,. \\1:1' slote LIk 1.' >jIX' ral Icdtiel *n tlbc N),-Sl: li.,i 5t, -;I s.

DIVIDENDS-I hi; (ccilaliyl pail SI.41t ii uI lit clisjxidt:cis lill ccciii-intin l k ill 2(f1), ;all of mIlid i11 iart iaiah!in.

br dbc ll im li'fil IwU" p"jlos-~

3' cII lls per shml.c smI, pImid ii cII 1 Ii uuit~ri Ai:XIA milnuilly jmy~ diivi-lctids ci iccinhiiucinin stick ltiir liii'

, Svli.

wii-i-alk i crio:ul tIll' I 5II oh I.iirei.

J.i, Siltp ilbfi ;,,,i1 I).'iciiier.AlA' Ii;hs pIidicI 379l (.clisii-cuivc';

itai ltei dhvidiiq.)II i 1iriiiicii siScik 1. izililill ill 1(!ui.

NUMBEROFSHAREHOLDERS-.\\%,I

)c D1 t

i l

cc11r 2111.

lure mm ri

cililcxiini'Iii iiild-i aiicl i rI\\i-ra.itIv 21.1,111111 iind'Iividali shiarehilcdeis hlIclinig 1.1ov, iii sirAli

ariie tlinciiaii d Ibiik.cc Itl.kcr. lI

rv mmcii

iv

% h'al.iics filiisiarldicicg :11 1vl'i cllhill -1. I, 201111 INTERNETHOMEPAGE-iillin-ia lirnitI jaicit Al-l'I'.

it icidi. LFI dilti a ctio ivilisit>. Sic uritrf. iii CA'i( ba;iign (

flhllillNc;IA Iiuvist Its r1lS. sv, iuvlolscl pr"'clit'lliollr.

shartllold'.-lt illf(Ior.1in~lil

.,il ola li-sis iic iiiliciii, is lvaiJ;ibl,ciii Ih (C cuii!i hlole('

pa.dA':

mIii il, hljurrici at11 fcill.

FINANCIALAND OTHER INFORMATION - 1:N aninitl i 111d

• )iler fiil.1iiiii.il re sinIt, c oit cciallil com-pa m

• cicii inilii rin.itinili.iiu avalaih. I fliclit Sli.co-Iciili-il I )iri (t :i I-I t-..

I I-.IlI': 1 2;'i a\\

I itil

'I;'cr l iqihi..

Ilaid c"'1p:';

i iniiil;,uili clil

(;Il l c.olt:ciu,-l

%ia I~cx 1it-nImi!. Iccviicts Hinr arIliiall ic pnrs. I)(-I's, I I'icrom Si.iin'ilt s and Siiininarv.iiAnnual I1.evptjils Sldilic I)'

llah-thllrliuhl Sliarehiccclclidcroin.

'1 Ilii saimi-iuif;rmitiatn i isl!,o ij'.Lililil: ut:o tic bsjIcsite aIt ssmm.,\\I'.uni.

FINANCIALCOMMUNITY INQUIRIES-Iintiltiiti1n:1 l iisi l s *n 't'lIlli-ties.iiI\\s 0 Iii' 1mm: hli:clis

.ta1cI('

ihaw i

lltm Ihe Ci sii iclli d: -

I icliqi.iiics tI Jiili: SMoat. ti 1-7 jdoliItj.iAI:I'.t cIii: Ilctic Cil-111l~.2.':,I ;,j!,i. kiii.iiiia.l

\\Il'.-

ciii. Inc(lisiina;l sli.iichi cliii~-

'Iciti~lc

.iilc I.~x, I.ct1,luc-iil Icic,. i,.

tIl i.,i l.iit ~!i.

klkc.'cci 5 X.rI..lI'.

ccliii OIl.\\ja'iI I ).immmci, il. ccl 'I-i i-2.c1. ithiimm\\ndividal' icJ

.l'ltvlor.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM D)clcitte & 'ticll.-i 1.1.1' 1.55 l lhio;ilc St.

Cc1iiiilism,,

( 4II 132 1; RECEIVE ANNUAL REPORTS AND PROXY MATERIALS ELECTRONICALLY -

'oi eii-ui iitiirl-aii:i:iial Ic-pcirts pii St.ituleil'.11 Iircij-s (c1ht tilci, iill%

railicl tci;il hi iia.iil; il voui are ar :cl isivic siihircihldei. I.,g cci. Io iicmvm.c c

,iilitccli/acl II 1ccIi lild vour shl;e, Iiill s'.1 i:;.1i1ii, uciltac \\i111 hcrokikr:

CORPORATE GOVERNANCE - Aiin -rii a c I lc.i t I

t vr i

i cciti cilimi ct' its Aunwi,; 0:zoilicatiol of1 tl,- (:ltid, 0'YltN (f >ic't'l' t} thls New 'Nick Sic,. k lxii h;ini

.n arcliiig thii Ni\\ 'Ncik Sic ik Fklihlallugc-coiic.i1'.c imeii1i 11(

c listiill m.iiiil.il clii.tIll v 21, 21)(1l..A.ritan lc-l'i'li I'im-eim icci it. (2iilicicici c f liii

(

Flizl oIY-c'itIvr'l ()ilice,-l L,(ld i

l I 'intl;(icial ( )lli (er I)II1.11l 11llt lIc Secfij-i "112 nil t

u 1

i Sibatlies-( )\\liy A, t cif '11,112 as LhiiliitI

1.1 I il( 31.2, iempctii~lv; it) it-. Animail Ip;cicrt clIt li]iill lil-K lioi tlw-fis,;il veal cii I D)c-ivilier'Il, 2111i1. hili-c \\iih tlil*

S:1

)iii 7.l;incil 1. 21I'ic.

I

I.,

,4 4

• 4 j

l

,,l.

4, 4

=

4 444 r*

4 4

44

£

.4 g

4 4

4 4

4 4

4

£ III