Exhibit 99
AEP Reports 2003 Year-End And Fourth-Quarter Earnings
* 2003 results: GAAP $0.29 per share, ongoing $2.53 per share
* UK operations, LIG moved to discontinued from ongoing
* Ongoing EPS $2.21 including discontinued operations, consistent with
guidance
* Robust wholesale sales and cost control boost utility businesses
* Company increases ongoing earnings guidance range for 2004
AMERICAN ELECTRIC POWER
Preliminary, unaudited results
($ in millions except per share data; EPS based on 339mm shares Q4 2002,
395mm in Q4 2003, 332mm in FY2002 and 385mm in FY2003)
Fourth quarter ended Dec. 31 Year ended Dec. 31
2002 2003 Variance 2002 2003 Variance
Revenue ($ in billions) 3.5 3.3 (0.2) 13.3 14.5 1.2
Earnings ($ in millions):
GAAP (837) (762) 75 (519) 110 629
Ongoing 232 198 (34) 948 975 27
EPS ($):
GAAP (2.47) (1.93) 0.54 (1.57) 0.29 1.86
Ongoing 0.68 0.51 (0.17) 2.86 2.53 (0.33)
COLUMBUS, Ohio, Feb. 3 /PRNewswire-FirstCall/ -- American Electric Power
(NYSE: AEP) today reported 2003 earnings, prepared in accordance with
Generally Accepted Accounting Principles (GAAP), of $110 million, or $0.29 per
share, compared with a loss of $519 million, or $1.57 per share, in 2002.
Fourth quarter GAAP earnings were a loss of $762 million, or $1.93 per share,
for 2003 compared with a loss of $837 million, or $2.47 per share, in 2002.
Ongoing earnings for 2003 increased to $975 million from $948 million in
2002, but ongoing earnings per share decreased to $2.53 from $2.86 because of
the $0.41 dilutive effect of additional shares outstanding in 2003. Including
discontinued operations that previously were part of ongoing earnings, AEP's
ongoing earnings for 2003 would have been $2.21 per share, consistent with
AEP's previously announced earnings guidance for 2003. In the fourth quarter
of 2003, AEP's United Kingdom operations and Louisiana Intrastate Gas (LIG)
became discontinued since the assets have been identified for sale during
2004. SEEBOARD and CitiPower, sold during 2002, also were discontinued
operations. Ongoing earnings for current and prior periods were adjusted to
reflect the changes.
Increased ongoing earnings from AEP's utility businesses, which benefited
from robust wholesale sales and continued success in controlling costs, and
reduced ongoing losses by investments contributed to the improvement in
ongoing earnings.
GAAP and ongoing EPS for fourth-quarter 2003 are based on an average of
approximately 395 million shares outstanding, compared to an average of
approximately 339 million shares outstanding for the same period in 2002.
Fiscal 2003 GAAP and ongoing EPS are based on an average of approximately
385 million shares outstanding, compared to an average 332 million shares
outstanding for the same period in 2002.
Among items excluded from fourth-quarter and 12-month ongoing earnings are
impairments for non-core businesses, losses from discontinued operations and
changes in accounting principles totaling charges of $960 million for
fourth-quarter 2003 and charges of $865 million for 12-month 2003. A full
reconciliation of items contributing to the difference between ongoing and
GAAP earnings for this period and comparable prior periods is included at the
end of this news release.
2004 EARNINGS GUIDANCE
AEP revised its 2004 ongoing earnings guidance to between $2.20 and $2.40
per share from the previous guidance of between $2.10 and $2.30 per share.
The primary drivers for this change in guidance are the reclassification of
the UK operations and LIG to discontinued and anticipated improved operational
performance.
In providing ongoing earnings guidance, AEP management is aware of
potential differences between 2004 ongoing earnings and 2004 GAAP earnings
because of the classification of UK operations and LIG as discontinued. At
this time AEP management is not able to accurately estimate the impact on GAAP
earnings of potential differences in timing of planned disposals of UK
operations, LIG and other non-core assets, or the potential impact of any
future changes in accounting principles. Therefore, AEP is not able at this
time to provide a corresponding GAAP equivalent for 2004 earnings guidance.
ONGOING RESULTS BY SEGMENT
($ in millions except per share data; EPS based on 339mm shares Q4 2002,
395mm in Q4 2003, 332mm in FY2002 and 385mm in FY2003)
Q4 2002 Q4 2003 Variance FY 2002 FY 2003 Variance
Utility Operations 267 284 17 1,163 1,213 50
Ongoing EPS 0.79 0.72 (0.07) 3.51 3.15 (0.36)
Investments (19) (12) 7 (179) (124) 55
Ongoing EPS (0.06) (0.03) 0.03 (0.54) (0.32) 0.22
Parent Company (16) (74) (58) (36) (114) (78)
Ongoing EPS (0.05) (0.18) (0.13) (0.11) (0.30) (0.19)
Ongoing Earnings 232 198 (34) 948 975 27
Ongoing EPS $0.68 $0.51 ($0.17) $2.86 $2.53 ($0.33)
"We're pleased with the continued improvement in ongoing earnings from our
utility operations in the quarter and year, despite unfavorable weather in
both periods," said Michael G. Morris, AEP president and chief executive
officer. "Wholesale power sales were strong, which allowed us to overcome
relatively flat retail demand, and we are continuing to see positive results
from our efforts to reduce and control utility operating and maintenance
expenses.
"We are actively working to divest our investments in the UK, Louisiana
Intrastate Gas and various other non-core investments this year," Morris said.
"We have assumed that the sale of the UK assets will happen toward the end of
the year and LIG toward mid-year, although we will complete the transactions
as soon as possible."
The increase in parent company expenses is primarily attributed to a
provision related to certain litigation contingencies.
ONGOING RESULTS FROM UTILITY OPERATIONS
($ in millions except per share data; EPS based on 339mm shares Q4 2002,
395mm in Q4 2003, 332mm in FY2002 and 385mm in FY2003)
Q4 2002 Q4 2003 Variance FY 2002 FY 2003 Variance
Regulated
Integrated
Utilities 717 716 (1) 3,022 2,896 (126)
Ohio Companies 456 492 36 1,972 1,997 25
Texas Wires 364 140 (224) 736 648 (88)
Texas Supply/REP 72 121 49 537 420 (117)
System Sales 76 83 7 300 461 161
Other Wholesale
Transactions (7) (8) (1) 57 (13) (70)
Transmission Revenue
- 3rd Party 104 117 13 422 467 45
Other Operating
Revenue 58 77 19 290 339 49
Total Gross
Margin 1,840 1,738 (102) 7,336 7,215 (121)
Operations &
Maintenance (819) (719) 100 (2,980) (2,841) 139
Depreciation &
Amortization (311) (321) (10) (1,261) (1,243) 18
Taxes Other Than
FIT (166) (126) 40 (765) (688) 77
Capital Cost and
Other (159) (155) 4 (593) (639) (46)
Federal Income
Taxes (118) (133) (15) (574) (591) (17)
Total Utility
Operations 267 284 17 1,163 1,213 50
Ongoing EPS $0.79 $0.72 ($0.07) $3.51 $3.15 ($0.36)
Mild weather in 2003, primarily in the eastern states in AEP's service
territory, was a factor in the $126 million year-to-year decrease in gross
margin for Regulated Integrated Utilities. Cooling degree days in the east
were down 40 percent from 2002, which reduced retail demand for electricity.
Higher capacity payments to the AEP system pool and under recovery of fuel
costs also contributed to the decrease.
The Ohio Companies benefited from increased fuel recovery and higher
capacity payments from the AEP system pool to improve gross margins by
$25 million in 2003 when compared to 2002.
The reduction in gross margin from Texas Wires in the quarter and year
comparisons is primarily attributed to non-cash earnings associated with
stranded cost recovery in Texas, which reflects the difference between the
actual price received from the state-mandated auction of 15 percent of
generation capacity and the earlier estimate of market prices derived from the
Public Utility Commission of Texas (PUCT) model. It has been established as a
regulatory asset that is recoverable through the 2004 true-up process
established by deregulation laws in Texas. AEP recorded $218 million in
non-cash Texas stranded cost recovery in 2003 and $262 million in 2002. The
non-cash earnings were recorded in the fourth quarter of 2002 for all of 2002
but were recorded on a quarterly basis in 2003.
The year-to-year $117 million decrease in Texas Supply/REP margin reflects
the loss of contributions from two Texas retail electricity providers (REPs)
sold to Centrica in December 2002. The demand from the two REPs was replaced,
in part, with a power supply contract with Centrica that extends through 2004.
A 19-week outage ending in August at South Texas Project Unit 1 also
contributed to the decrease. AEP owns 25 percent of the nuclear plant. Also
contributing to the year-to-year decline is a provision for a $101.5 million
fuel disallowance by the PUCT. AEP is challenging the disallowance.
Gross margin from System Sales for 2003 increased $161 million, or almost 54
percent, from 2002. Much of the increase came in the first nine months of
2003; fourth-quarter results were relatively flat with the prior period.
System Sales includes the sale of surplus power from AEP's generating plants
into the wholesale market.
"We had excellent plant availability through much of 2003, which was
beneficial because our low-cost generation -- not required by our retail load
because of lower demand -- was available when wholesale prices were
favorable," Morris said.
The transition electric trading book, associated with AEP's decision to
exit from markets where it doesn't own assets, is included in Other Wholesale
Transactions. The 2003 results, which reflect AEP's "flattened" positions in
those markets, are compared to gains in 2002 when AEP was an active
participant.
The year-to-year and quarter-to-quarter increases in Transmission Revenue
reflect the result of the increases in wholesale sales.
AEP reduced Operations & Maintenance expenses in 2003 by $139 million, or
almost 5 percent, from 2002 despite greater storm damage costs in 2003
associated with severe storms in the Midwest and higher pension and
post-retirement benefits costs. Much of the reduction came in the fourth
quarter primarily as a result of savings in administrative and general
expenses such as salaries and other associated employee expenses, outside
services, insurance, and the sale of the Texas REP back office.
"It's important to note that we reduced O&M costs without compromising our
commitment to reliability and safety," Morris said. "We focus on making
decisions that are cost effective, but we know we can't save our way to
prosperity. We need to be growing our business while maintaining our focus on
cost control."
ONGOING RESULTS FROM INVESTMENTS
($ in millions except per share data; EPS based on 339mm shares Q4 2002,
395mm in Q4 2003, 332mm in FY2002 and 385mm in FY2003)
Q4 2002 Q4 2003 Variance FY 2002 FY 2003 Variance
AEP Energy Services,
includes
Gas HoldCo (HPL) (7) 3 10 (91) (62) 29
MEMCO 4 7 3 11 12 1
Independent Power
Plants and Wind
Farms (6) 10 16 (10) 4 14
AEP Resources - Other (8) (26) (18) (45) (48) (3)
Other (2) (6) (4) (44) (30) 14
Total
Investments (19) (12) 7 (179) (124) 55
Ongoing EPS ($0.06) ($0.03) $0.03 ($0.54) ($0.32) $0.22
Reduced operating expenses, improved gross margins and reduced
administrative expenses related to the transition gas trading activities
resulted in the AEP Energy Services earnings improvement in the fourth quarter
of 2003 as compared to 2002. For the year, a significant reduction in losses
from the transition trading activities, combined with reduced operating and
administrative expenses, resulted in a reduction of losses as compared to
2002. AEP announced in October 2002 that it was reducing its exposure to
speculative energy trading markets and downsizing its trading and wholesale
marketing operation.
A strong fourth quarter helped MEMCO to improve its 12-month results from
2002. Improving economic conditions during 2003 have strengthened the freight
market, allowing MEMCO to utilize additional barges and increase earnings.
The sale of two independent power plants (IPPs) during 2003 and an
increase in profitability by AEP's wind farms resulted in $4 million in
earnings from IPPs and Wind Farms in 2003 after a $10 million loss in 2002.
"We are proud to be one of the largest wind generators in the U.S.,
especially now that the wind generation is more profitable," Morris said.
Increased fourth-quarter losses by AEP Resources-Other are primarily
attributed to intercompany tax allocations.
DISCONTINUED OPERATIONS
($ in millions except per share data; EPS based on 339mm shares Q4 2002,
395mm in Q4 2003, 332mm in FY2002 and 385mm in FY2003)
Q4 2002 Q4 2003 Variance FY 2002 FY 2003 Variance
UK operations (45) (44) 1 (39) (132) (93)
EPS ($0.13) ($0.11) $0.02 ($0.12) ($0.34) ($0.22)
Louisiana
Intrastate Gas (2) 2 4 8 8 0
EPS ($0.01) $0.00 $0.01 $0.03 $0.02 ($0.01)
SEEBOARD
(sale closed
7/29/2002) (8) -- 8 50 -- (50)
EPS ($0.02) -- $0.02 $0.15 -- ($0.15)
CitiPower
(sale closed
8/30/2002) -- -- -- (10) -- 10
EPS -- -- -- ($0.03) -- $0.03
Total
Discontinued
Operations (55) (42) 13 9 (124) (133)
EPS ($0.16) ($0.11) $0.05 $0.03 ($0.32) ($0.35)
AEP reclassified UK operations and LIG as discontinued during the fourth
quarter after finalizing plans to exit these businesses during 2004.
Continued unfavorable plant and trading margins were factors in the
significant losses recorded by the UK operations during the year. The
accounting treatment of freight hedges in the third quarter was also a key
factor in increased losses for 2003 when compared to 2002. Other factors
include reduced trading activity from reduced risk appetite and increased
operating costs largely associated with the exit of non-core markets.
Morris expressed optimism about AEP's outlook for 2004.
"All things considered, 2003 was a reasonably successful year,
demonstrating the continuing strength of our core utility operations," Morris
said. "We have put many open issues behind us and are taking steps to improve
our results going forward. We remain focused on strengthening our balance
sheet, improving utility operations, and investing in our core utility
businesses.
"I'm confident we are on the right course," Morris said.
WEBCAST
American Electric Power's quarterly conference call with financial
analysts will be broadcast live over the Internet at 9:30 a.m. EST today on
http://www.aep.com/go/webcasts or
http://www.firstcallevents.com/service/ajwz397409303gf12.html .
The call will be archived on http://www.aep.com/go/webcasts for use by
those unable to listen during the live webcast.
Minimum requirements to listen to broadcast: The Windows Media Player
software, free from
http://www.microsoft.com/windows/windowsmedia/download/default.asp, and at
least a 28.8Kbps connection to the Internet. If you experience problems
listening to the broadcast, send an e-mail to webcastsupport@tfprn.com .
---
American Electric Power owns and operates more than 42,000 megawatts of
generating capacity in the United States and select international markets and
is the largest electricity generator in the U.S. AEP is also one of the
largest electric utilities in the United States, with almost 5 million
customers linked to AEP's 11-state electricity transmission and distribution
grid. The company is based in Columbus, Ohio.
---
AEP's GAAP earnings are prepared in accordance with accounting principles
generally accepted in the United States and represent the company's earnings
as reported to the Securities and Exchange Commission. AEP's management
believes that the company's ongoing earnings, or GAAP earnings adjusted for
certain items as described in the news release and charts, provide a more
meaningful representation of the company's performance. AEP uses ongoing
earnings as the primary performance measurement when communicating with
analysts and investors regarding its earnings outlook and results. The
company also uses ongoing earnings data internally to measure performance
against budget and to report to AEP's board of directors.
---
These reports made by AEP and its registrant subsidiaries contain
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Although AEP and its registrant subsidiaries believe
that their expectations are based on reasonable assumptions, any such
statements may be influenced by factors that could cause actual outcomes and
results to be materially different from those projected. Among the factors
that could cause actual results to differ materially from those in the
forward-looking statements are: electric load and customer growth; abnormal
weather conditions; available sources and costs of fuels; availability of
generating capacity; the speed and degree to which competition is introduced
to the company's service territories; the ability to recover stranded costs in
connection with deregulation; new legislation and government regulation
including (i) requirements for reduced emissions of sulfur, nitrogen, carbon
and other substances and (ii) electricity transmission policy; pending and
future rate cases and negotiations; oversight and/or investigation of the
energy sector or its participants; the company's ability to successfully
control costs; the success of disposing of existing investments that no longer
match the company's corporate profile; international and country-specific
developments affecting foreign investments including the disposition of any
current foreign investments; the economic climate and growth in the company's
service territory and changes in market demand and demographic patterns;
inflationary trends; accounting pronouncements periodically issued by
accounting standard-setting bodies; the performance of AEP's pension plan;
electricity and gas market prices; interest rates; liquidity in the banking,
capital and wholesale power markets; actions of rating agencies; changes in
technology, including the increased use of distributed generation within the
company's transmission and distribution service territory; other risks and
unforeseen events, including wars, the effects of terrorism, embargoes and
other catastrophic events.
American Electric Power
Financial Results for 4th Quarter 2003 Actual vs 4th Quarter 2002 Actual
2002 Actual 2003 Actual
($ millions) EPS ($ millions) EPS
UTILITY OPERATIONS:
Gross Margin:
1 Regulated Integrated Utilities 717 716
2 Ohio Cos. 456 492
3 Texas Wires 364 140
4 Texas Supply / REP 72 121
5 System Sales 76 83
6 Other Wholesale Transactions (7) (8)
7 Transmission Revenue - 3rd Party 104 117
8 Other Operating Revenue 58 77
9 Total Gross Margin 1,840 1,738
10 Operations & Maintenance (819) (719)
11 Depreciation & Amortization (311) (321)
12 Taxes Other than FIT (166) (126)
13 Capital Cost and Other (159) (155)
14 Federal Income Taxes (118) (133)
15 Net Earnings Utility
Operations 267 0.79 284 0.72
INVESTMENTS:
16 AEPES, inclds Gas HoldCo (HPL) (7) 3
17 MEMCO 4 7
18 IPPs and Wind Farms (6) 10
19 AEP Resources - Other (8) (26)
20 Other (2) (6)
21 Total Investments (19) (0.06) (12) (0.03)
22 Parent Company (16) (0.05) (74) (0.18)
23 ON-GOING EARNINGS 232 0.68 198 0.51
24 Discontinued Operations:
25 UK Generation (45) (0.13) (44) (0.11)
26 LIG (2) (0.01) 2 -
27 SEEBOARD (8) (0.02) - -
28 CitiPower - - - -
29 ON-GOING EARNINGS, before
Discontinued Operations 177 0.52 156 0.40
Note: For analysis purposes, certain financial statement amounts have
been reclassified for this effect on earnings presentation.
American Electric Power
Financial Results for 4th Quarter 2003 Actual
Reconciliation of On-going and Reported Earnings
2003 Actual
Utility Invest. Parent Total EPS
($ millions)
On-going Earnings 284 (12) (74) 198 0.51
Impairments:
Adjustment to SEEBOARD Impairment - 16 - 16 0.04
Impairment - Gas Assets (LIG & HPL) - (340) - (340) (0.86)
Impairment - UK Generation - (375) - (375) (0.95)
Impairment - AEP Coal - (44) - (44) (0.11)
Impairment - Blackhawk Coal (7) - - (7) (0.02)
Impairment - Dow Plant - (168) - (168) (0.43)
Discontinued Operations:
UK Operations Discontinued - (44) - (44) (0.11)
LIG Discontinued Operations - 2 - 2 -
Total Special Items (7) (953) - (960) (2.44)
Reported Earnings 277 (965) (74) (762) (1.93)
American Electric Power
Financial Results for 4th Quarter 2002 Actual
Reconciliation of On-going and Reported Earnings
2002 Actual
Utility Invest. Parent Total EPS
($ millions)
On-going Earnings 267 (19) (16) 232 0.68
Severance (42) (12) (2) (56) (0.17)
Other (3) 5 (10) (8) (0.02)
Impairments and Dispositions:
Goodwill Impairment - UK Generation - (169) - (169) (0.50)
Goodwill Impairment - Nordic Trading - (4) - (4) (0.01)
Goodwill Impairment - AEP Coal - (4) - (4) (0.01)
Impairment - SEEBOARD - 13 - 13 0.04
Impairment - CitiPower - (15) - (15) (0.05)
Impairment - UK Generation - (246) - (246) (0.73)
Impairment - Southcoast Power - (53) - (53) (0.16)
Impairment - Grupo Rede - (141) - (141) (0.42)
Impairment - AEP Coal - (35) - (35) (0.10)
Impairment - Telecommunications - (160) - (160) (0.47)
Impairment - AEP Investments - (12) - (12) (0.03)
Impairment - AEPR Turbine Sale - (15) - (15) (0.05)
Impairment - New Gulf - (8) - (8) (0.02)
Impairment - Eastex - (142) - (142) (0.42)
Impairment - Nordic Trading - (13) - (13) (0.04)
Impairment - AEPR Pushan - (13) - (13) (0.04)
Asset Impairment - Texas Plants (4) - - (4) (0.01)
Water Heater Program loss on sale (5) - - (5) (0.01)
REP Sale net Gain 76 - - 76 0.23
Discontinued Operations:
UK Operations Discontinued - (45) - (45) (0.13)
LIG Discontinued Operations - (2) - (2) (0.01)
SEEBOARD Discontinued Operations - (8) - (8) (0.02)
Total Special Items 22 (1,079) (12) (1,069) (3.15)
Reported Earnings 289 (1,098) (28) (837) (2.47)
American Electric Power
Summary of Selected Sales Data
For Domestic Operations
(Data based on preliminary, unaudited results)
3 Months Ended December 31,
2002** 2003** Change
ENERGY SUMMARY
Retail - Domestic Electric
(in millions of kWh):
Residential 11,024 10,667 -3.2%
Commercial 8,691 9,021 3.8%
Industrial 13,399 13,236 -1.2%
Miscellaneous 1,156 777 -32.8%
Total Domestic Retail 34,270 33,701 -1.7%
Wholesale - Domestic Electric
(in millions of kWh): 12,788 17,562 37.3%
EAST REGION WEATHER SUMMARY
(in degree days):
Actual - Heating 2,015 1,838 -8.8%
- Cooling 37 6 -83.8%
Normal - Heating 1,897 -3.1%*
- Cooling 14 -57.1%*
WEST REGION WEATHER SUMMARY (in degree days):
Actual - Heating 241 181 -24.9%
- Cooling 312 298 -4.5%
Normal - Heating 223 -18.8%*
- Cooling 319 -6.6%*
* 2003 Actual vs. Normal
** Excludes energy transported on behalf of non-affiliated REP's in Texas;
energy sold to affiliated REP's in Texas are included in wholesale
sales.
American Electric Power
Financial Results for December 2003 YTD Actual vs December 2002 YTD
Actual
2002 Actual 2003 Actual
($ millions) EPS ($ millions) EPS
UTILITY OPERATIONS:
Gross Margin:
1 Regulated Integrated Utilities 3,022 2,896
2 Ohio Cos. 1,972 1,997
3 Texas Wires 736 648
4 Texas Supply / REP 537 420
5 System Sales 300 461
6 Other Wholesale Transactions 57 (13)
7 Transmission Revenue - 3rd Party 422 467
8 Other Operating Revenue 290 339
9 Total Gross Margin 7,336 7,215
10 Operations & Maintenance (2,980) (2,841)
11 Depreciation & Amortization (1,261) (1,243)
12 Taxes Other than FIT (765) (688)
13 Capital Cost and Other (593) (639)
14 Federal Income Taxes (574) (591)
15 Net Earnings Utility
Operations 1,163 3.51 1,213 3.15
INVESTMENTS:
16 AEPES, inclds Gas HoldCo (HPL) (91) (62)
17 MEMCO 11 12
18 IPPs and Wind Farms (10) 4
19 AEP Resources - Other (45) (48)
20 Other (44) (30)
21 Total Investments (179) (0.54) (124) (0.32)
22 Parent Company (36) (0.11) (114) (0.30)
23 ON-GOING EARNINGS 948 2.86 975 2.53
24 Discontinued Operations:
25 UK Generation (39) (0.12) (132) (0.34)
26 LIG 8 0.03 8 0.02
27 SEEBOARD 50 0.15 - -
28 CitiPower (10) (0.03) - -
29 ON-GOING EARNINGS, before
Discontinued Operations 957 2.89 851 2.21
Note: For analysis purposes, certain financial statement amounts have
been reclassified for this effect on earnings presentation.
American Electric Power
Financial Results for December 2003 YTD Actual
Reconciliation of On-going and Reported Earnings
2003 Actual
Utility Invest. Parent Total EPS
($ millions)
On-going Earnings 1,213 (124) (114) 975 2.53
Changes in Accounting Principles:
SFAS 143 Asset Retirement
Obligation 249 (7) - 242 0.63
Cessation of EITF 98-10 re: MTM
accounting (12) (37) - (49) (0.13)
Impairments and Dispositions:
Adjustment to South Coast Impairment - 6 - 6 0.02
IPP Impairment - (45) - (45) (0.12)
Adjustment to SEEBOARD Impairment - 16 - 16 0.04
Impairment - Gas Assets (LIG & HPL) - (340) - (340) (0.88)
Impairment - UK Generation - (375) - (375) (0.97)
Impairment - AEP Coal - (44) - (44) (0.11)
Impairment - Blackhawk Coal (7) - - (7) (0.02)
Impairment - Dow Plant - (168) - (168) (0.44)
Net Proceeds from Sale of Mutual
Energy (back office operations) - 26 - 26 0.07
Adjustment to sale of water
heater rental program (3) - - (3) (0.01)
Discontinued Operations:
UK Discontinued Operations - (132) - (132) (0.34)
LIG Discontinued Operations - 8 - 8 0.02
Total Special Items 227 (1,092) - (865) (2.24)
Reported Earnings 1,440 (1,216) (114) 110 0.29
American Electric Power
Financial Results for December 2002 YTD Actual
Reconciliation of On-going and Reported Earnings
2002 Actual
Utility Invest. Parent Total EPS
($ millions)
On-going Earnings 1,163 (179) (36) 948 2.86
Changes in Accounting Principles:
SFAS 142 Goodwill Transition
Impairment - SEEBOARD - (323) - (323) (0.97)
SFAS 142 Goodwill Transition
Impairment - CitiPower - (27) - (27) (0.08)
Severance (42) (12) (2) (56) (0.17)
Other (12) 14 (10) (8) (0.03)
Impairments and Dispositions:
Goodwill Impairment - AEP Gas
Power GP, LLC - (8) - (8) (0.02)
Goodwill Impairment - UK Generation - (169) - (169) (0.51)
Goodwill Impairment - Nordic Trading - (4) - (4) (0.01)
Goodwill Impairment - AEP Coal - (4) - (4) (0.01)
Impairment - SEEBOARD - 37 - 37 0.11
Impairment - CitiPower - (121) - (121) (0.37)
Impairment - UK Generation - (246) - (246) (0.74)
Impairment - Southcoast Power - (53) - (53) (0.16)
Impairment - Grupo Rede - (141) - (141) (0.43)
Impairment - AEP Coal - (35) - (35) (0.11)
Impairment - Telecommunications - (160) - (160) (0.48)
Impairment - AEP Investments - (12) - (12) (0.04)
Impairment - AEPR Turbine Sale - (15) - (15) (0.05)
Impairment - New Gulf - (8) - (8) (0.02)
Impairment - Eastex - (142) - (142) (0.43)
Impairment - Nordic Trading - (13) - (13) (0.04)
Impairment - AEPR Pushan - (13) - (13) (0.04)
Asset Impairment - Texas Plants (26) - - (26) (0.08)
Water Heater Program loss on sale (5) - - (5) (0.01)
REP Sale net Gain 76 - - 76 0.23
Discontinued Operations:
UK Discontinued Operations - (39) - (39) (0.12)
LIG Discontinued Operations - 8 - 8 0.03
SEEBOARD Discontinued Operations - 50 - 50 0.15
CitiPower Discontinued Operations - (10) - (10) (0.03)
Total Special Items (9) (1,446) (12) (1,467) (4.43)
Reported Earnings 1,154 (1,625) (48) (519) (1.57)
American Electric Power
Summary of Selected Sales Data
For Domestic Operations
(Data based on preliminary, unaudited results)
12 Months Ended December 31,
2002** 2003** Change
ENERGY SUMMARY
Retail - Domestic Electric
(in millions of kWh):
Residential 46,805 45,479 -2.8%
Commercial 36,487 37,104 1.7%
Industrial 53,686 51,856 -3.4%
Miscellaneous 3,216 3,035 -5.6%
Total Domestic Retail 140,194 137,474 -1.9%
Wholesale - Domestic Electric
(in millions of kWh): 70,661 72,977 3.3%
EAST REGION WEATHER SUMMARY
(in degree days):
Actual - Heating 4,963 5,314 7.1%
- Cooling 1,252 757 -39.5%
Normal - Heating 5,182 2.5%*
- Cooling 975 -22.4%*
WEST REGION WEATHER SUMMARY
(in degree days):
Actual - Heating 1,044 1,020 -2.3%
- Cooling 2,369 2,220 -6.3%
Normal - Heating 1,062 -4.0%*
- Cooling 2,217 0.1%*
* 2003 Actual vs. Normal
** Excludes energy transported on behalf of non-affiliated REP's in Texas;
energy sold to affiliated REP's in Texas are included in wholesale
sales.
SOURCE American Electric Power
-0- 02/03/2004
/CONTACT: Media: Pat D. Hemlepp, Director, Corporate Media Relations,
+1-614-716-1620; or Analysts: Julie Sloat, Managing Director, Investor
Relations, +1-614-716-2885, or Bette Jo Rozsa, Managing Director, Investor
Relations, +1-614-716-2840, all of American Electric Power/
/Company News On-Call: http://www.prnewswire.com/comp/042050.html /
/Web site: http://www.aep.com /
(AEP)
CO: American Electric Power
ST: Ohio
IN: OIL UTI
SU: ERN CCA