| Issuer: | Indiana Michigan Power Company |
| Designation: | Senior Notes, Series I, due 2019 |
| Principal Amount: | $475,000,000 |
| Maturity: | March 15, 2019 |
| Coupon: | 7.00% |
| Interest Payment Dates: | March 15 and September 15 |
| First Interest Payment Date: | March 15, 2009 |
| Treasury Benchmark: | 3.75% due November 15, 2018 |
| Treasury Price: | 112-08+ |
| Treasury Yield: | 2.346% |
| Reoffer Spread: | +475 basis points |
| Yield to Maturity: | 7.096% |
| Price to Public: | 99.326% of the principal amount thereof |
| Transaction Date: | January 12, 2009 |
| Settlement Date: | January 15, 2009 (T+3) |
| Redemption Terms: | At any time at a discount rate of the Treasury Rate plus 50 basis points |
| Minimum Denomination: | $1,000 |
| CUSIP: | 454889 AN6 |
Joint Book-Running Managers: Co-Managers: | Barclays Capital Inc. BNP Paribas Securities Corp. Credit Suisse Securities (USA) LLC Greenwich Capital Markets, Inc. KeyBanc Capital Markets Inc. Mitsubishi UFJ Securities International plc |
| Anticipated Ratings: | Baa2 by Moody’s Investors Service, Inc. BBB by Standard & Poor’s Ratings Services BBB by Fitch Ratings |
