2017 AEP Fact Book · 2017-11-03 · 2017 AEP Fact Book . 52. nd. EEI Financial Conference ....

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0 52 nd EEI Financial Conference | aep.com 2017 AEP Fact Book 52 nd EEI Financial Conference November 5-8, 2017 Lake Buena Vista, Florida

Transcript of 2017 AEP Fact Book · 2017-11-03 · 2017 AEP Fact Book . 52. nd. EEI Financial Conference ....

Page 1: 2017 AEP Fact Book · 2017-11-03 · 2017 AEP Fact Book . 52. nd. EEI Financial Conference . November 5-8, 2017 . ... AEP Overview Operating Company Detail for: AEP: The Premier Regulated

0 52nd EEI Financial Conference | aep.com

2017 AEP Fact Book

52nd EEI Financial Conference

November 5-8, 2017

Lake Buena Vista, Florida

Page 2: 2017 AEP Fact Book · 2017-11-03 · 2017 AEP Fact Book . 52. nd. EEI Financial Conference . November 5-8, 2017 . ... AEP Overview Operating Company Detail for: AEP: The Premier Regulated

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Bette Jo Rozsa Managing Director Investor Relations 614-716-2840 [email protected]

Darcy Reese Director Investor Relations 614-716-2614 [email protected]

“Safe Harbor” Statement under the

Private Securities Litigation Reform Act of 1995

INVESTOR RELATIONS

This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of 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: the economic growth or contraction within and changes in market demand and demographic patterns in our service territories,

inflationary or deflationary interest rate trends, volatility in the financial markets, particularly developments affecting the availability or cost of capital to finance new

capital projects and refinance existing debt, the availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag

between incurring costs and recovery is long and the costs are material, electric load and customer growth, weather conditions, including storms and drought

conditions, and our ability to recover significant storm restoration costs, the cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers

and transporters and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel, availability of necessary generation capacity, the

performance of our generation plants and the availability of fuel, including processed nuclear fuel, parts and service from reliable vendors, our ability to recover fuel and

other energy costs through regulated or competitive electric rates, our ability to build transmission lines and facilities (including our ability to obtain any necessary

regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs, new legislation, litigation and government regulation,

including oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon,

soot or particulate matter and other substances that could impact the continued operation, cost recovery and/or profitability of our generation plants and related assets,

evolving public perception of the risks associated with fuels used before, during and after the generation of electricity, including nuclear fuel, a reduction in the federal

statutory tax rate could result in an accelerated return of deferred federal income taxes to customers, timing and resolution of pending and future rate cases,

negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental

compliance, resolution of litigation, our ability to constrain operation and maintenance costs, our ability to develop and execute a strategy based on a view regarding

prices of electricity and gas, prices and demand for power that we generate and sell at wholesale, changes in technology, particularly with respect to energy storage

and new, developing, alternative or distributed sources of generation, our ability to recover through rates any remaining unrecovered investment in generation units that

may be retired before the end of their previously projected useful lives, volatility and changes in markets for capacity and electricity, coal and other energy-related

commodities, particularly changes in the price of natural gas, changes in utility regulation and the allocation of costs within regional transmission organizations,

including ERCOT, PJM and SPP, our ability to successfully and profitably manage our competitive generation assets, including the evaluation and execution of strategic

alternatives for these assets as some of the alternatives could result in a loss, changes in the creditworthiness of the counterparties with whom we have contractual

arrangements, including participants in the energy trading market, actions of rating agencies, including changes in the ratings of our debt, the impact of volatility in the

capital markets on the value of the investments held by our pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and

the impact of such volatility on future funding requirements, accounting pronouncements periodically issued by accounting standard-setting bodies and other risks and

unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, cyber security threats and other catastrophic events.

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TABLE OF CONTENTS AEP Overview Operating Company Detail for:

AEP: The Premier Regulated Energy Company Appalachian Power Company (including Wheeling & Kingsport)

AEP Corporate Leadership Indiana Michigan Power Company

AEP Operational Structure Kentucky Power Company

AEP Service Territory Ohio Power Company

2016 Retail Revenue Public Service Company of Oklahoma

Generation Fleet Southwestern Power Company

Transmission Line Circuit Miles Detail AEP Texas

Distribution Line Detail

Rate Base & ROEs Regulated Generation

Summary of Rate Case Filing Requirements Regulated Generation Summary

Retail Recovery Mechanisms by Jurisdiction Owned Regulated Generation

Storm O&M Recovery Mechanisms by Jurisdiction Regulated Fuel Procurement – 2018 Projected

Jurisdictional Off-System Sales Sharing Summary Regulated Coal Delivery – 2018 Projected

Commission Overview Jurisdictional Fuel Clause Summary

Transforming Our Generation Fleet Transmission Initiatives

Transforming Our Generation Fleet AEP Transmission Holdco Legal Entity Structure

Investments Driving Emission Reductions AEP Transco Business Overview

Dramatic Reductions in Emissions AEP Transco Project Mix & Footprint

Large-scale Renewable Opportunities Transmission Investment Needs

Delivering Clean Energy Resources Transco State & FERC Regulatory Compacts

Renewable Resources FERC Formula Rate & Filings

Renewable Portfolio/Energy Efficiency Standards Active Joint Venture Projects

Regulated & Competitive Retirements Competitive Transmission – Transource

Regulated Environmental Controls Grid Assurance Executive Summary & Timeline

Competitive Environmental Controls BOLD Strategy

Additional Environmental Regulations Evolution of Transmission Trackers

Favorable Recovery of Transmission Investment

Financial Update

Capitalization & Liquidity Contracted Renewables & Other

Pension & OPEB Estimates Organizational Structure

AEP Banking Group Contracted Renewables

AEP Credit Ratings Competitive Generation – Owned & PPA

Long-Term Debt Maturity Profile Competitive 2016 Fleet Statistics

Debt Schedules Retail – AEP Energy

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AEP: THE PREMIER REGULATED ENERGY COMPANY

American Electric Power is one of the largest electric utilities in the United States, delivering electricity and custom energy

solutions to nearly 5.4 million customers in 11 states. AEP’s headquarters is in Columbus, Ohio. (NYSE: AEP)

AEP’s regulated electric assets

include the following:

Approximately 23,000 megawatts of regulated

owned generating capacity and approximately

4,800 megawatts of regulated PPA capacity in

3 RTOs.

Approximately 40,000 circuit miles of

transmission lines, including more than 1,150

miles of Transco lines and over 2,100 miles of

765kV lines, the backbone of the electric

interconnection grid in the Eastern U.S.

AEP Transco has approximately $4.7B of

transmission assets in service with additional

capital expenditure plans of approximately

$4.3B from 2018 – 2020.

Approximately 219,000 miles of overhead and

underground distribution lines.

AEP consistently produces strong

financial results:

Expecting operating earnings growth of

5% to 7%.

Strong balance sheet including $64 billion of

assets.

Cash dividend paid every quarter since 1910.

Dividend payout ratio of 60 % to 70% of

operating earnings and growing dividend in

line with earnings.

WELL POSITIONED AS A REGULATED BUSINESS

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AEP CORPORATE LEADERSHIP

Nicholas K. Akins

Chairman, President

and Chief Executive

Officer

Lisa M. Barton

Executive Vice President –

Transmission

David M. Feinberg

Executive Vice President,

General Counsel and

Secretary

Brian X. Tierney

Executive Vice President

and Chief Financial Officer

Charles E. Zebula

Executive Vice President –

Energy Supply

Lana L. Hillebrand

Executive Vice President

and Chief Administrative

Officer

Charles R. Patton

Executive Vice President –

External Affairs

Paul Chodak III

Executive Vice President –

Utilities

Mark C. McCullough

Executive Vice President –

Generation

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AEP OPERATIONAL STRUCTURE*

* Does not represent legal structure

AEP, Inc.

Regulated Utilities

Appalachian Power Company

Indiana Michigan Power Company

Kentucky Power Company

Public Service Company of Oklahoma

Southwestern Electric Power Company

Ohio Power Company

Wheeling Power Company

Kingsport Power Company

AEP Texas AEP Generating

Company

AEP Transmission Holding Company

AEP Transmission Company

AEP Appalachian Transco

AEP Kentucky Transco

AEP Southwestern Transco

AEP Ohio Transco

AEP Oklahoma Transco

AEP Indiana Michigan Transco

AEP West Virginia Transco

Joint Ventures

Competitive Operations

AEP Energy Supply

AEP Energy

AEP Energy Partners

AEP Generation Resources

AEP OnSite Partners

AEP Renewables

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AEP SERVICE TERRITORY

VERTICALLY INTEGRATED UTILITIES

Appalachian Power Company (APCo)

Indiana Michigan Power Company (I&M)

Kingsport Power Company (KGPCo)

Kentucky Power Company (KPCo)

Wheeling Power Company (WPCo)

Public Service Company of Oklahoma (PSO)

Southwestern Electric Power Company (SWEPCo)

Texas

Arkansas

Oklahoma

Louisiana Indiana

Michigan

Tennessee

Kentucky

West Virginia

Virginia

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AEP SERVICE TERRITORY

TRANSMISSION AND DISTRIBUTION UTILITIES

AEP Texas Ohio Power Company (OPCo)

Ohio Texas

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2016 RETAIL REVENUE

Top 10 Industrial Sectors Across the AEP System By

NAICS Code % of Total

Industrial Sales

331 Primary Metal Manufacturing 14.3%

325 Chemical Manufacturing 13.1%

324 Petroleum and Coal Products Manufacturing 11.8%

486 Pipeline Transportation 7.9%

322 Paper Manufacturing 6.6%

211 Oil and Gas Extraction 5.8%

212 Mining (except Oil and Gas) 5.6%

326 Plastics and Rubber Products Manufacturing 5.6%

336 Transportation Equipment Manufacturing 4.6%

311 Food Manufacturing 4.5%

Source: 2016 10-K

* Note: Figures do not include Other Revenues

CUSTOMER PROFILE

AEP’S SERVICE TERRITORY ENCOMPASSES APPROXIMATELY

5.4 MILLION CUSTOMERS IN 11 STATES

Percentage of AEP System Retail Revenues Percentage Composition by Customer Class *

2%

13%

5%

4%

2%

26%

8%

1%

14%

13%

12% Arkansas

Indiana

Kentucky

Louisiana

Michigan

Ohio

Oklahoma

Tennessee

Texas

Virginia

West Virginia

48%

28%

19%

5%

Residential

Commercial

Industrial

Wholesale

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GENERATION FLEET Competitive - 2017 Generation Capacity

by Fuel Type Based on 3,311 MW*

Regulated - 2017 Generation Capacity by Fuel Type

Based on 29,771 MW**

**Includes: • 953 MW of OVEC entitlement• 2,512 MW of renewable PPAs• 1,149 MW of gas PPAs• 355 MW for AEP Texas North’s

portion of Oklaunion• 2,021 MW of Demand Response /

Energy Efficiency Programs

*Includes 177 MW ofwind PPA. Excludes 355 MW of PPA for AEP Texas North’s portion of Oklaunion.

Total Fleet - 2017 Generation Capacity by Fuel Type

Based on 33,082 MW***

***Includes: • 953 MW of OVEC entitlement• 2,898 MW of renewable PPAs• 1,149 MW of gas PPAs• 355 MW for AEP Texas North’s

portion of Oklaunion• 2,021 MW of Demand Response /

Energy Efficiency Programs

Coal/Lignite - Controlled43.5%

Natural Gas 30.2%

Hydro, Wind, Solar, &Pumped Storage 11.9%

Nuclear 7.7%

DemandResponse/EnergyEfficiency 6.8%

Coal/Lignite -Controlled 47.2%

Natural Gas 27.2%

Hydro, Wind, Solar, &Pumped Storage 12.7%

Nuclear 6.9%

DemandResponse/EnergyEfficiency 6.1%

Coal/Lignite - Controlled80.3%

Hydro, Wind, Solar, &Pumped Storage 19.7%

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TRANSMISSION LINE CIRCUIT MILES DETAIL

Operating Company Level (Circuit Miles)

Operating

Company 765kV 500kV 345kV 230kV 161kV 138kV 115kV 88kV 69kV 46kV 40kV 34.5kV 23kV Total

APCo 732 95 381 107 0 2,833 0 37 980 730 0 155 0 6,050

OPCo 507 0 1,354 0 0 3,214 0 0 2,260 0 53 417 61 7,866

I&M 616 0 1,618 0 0 1,671 0 0 681 0 0 577 0 5,163

KGPCo 0 0 0 0 0 44 0 0 0 0 0 29 0 73

KPCo 257 0 8 0 48 358 0 0 428 166 0 3 0 1,268

PSO 0 0 608 34 8 1,990 10 0 621 0 0 0 0 3,271

SWEPCo 0 0 736 0 305 1,459 29 0 1,572 0 0 0 0 4,101

AEP Texas 0 0 855 0 0 3,891 0 0 3,654 0 0 0 0 8,400

WPCo 0 16 16 0 0 194 0 0 86 0 0 0 0 312

Transco - IM 15 0 23 0 0 14 0 0 61 0 0 17 0 130

Transco - Ohio 1 0 118 0 0 187 0 0 196 0 3 6 21 532

Transco - OK 0 0 1 0 0 102 0 0 0 4 0 0 0 107

Transco - WV 0 0 0 0 0 229 0 0 155 0 0 0 0 384

Total 2,128 111 5,718 141 361 16,186 39 37 10,694 900 56 1,204 82 37,657

State Level (Circuit Miles)

State 765kV 500kV 345kV 230kV 161kV 138kV 115kV 88kV 69kV 46kV 40kV 34.5kV 23kV Total

Arkansas 0 0 78 0 305 249 13 0 445 0 0 0 0 1,090

Indiana 615 0 1,408 0 0 1,450 0 0 443 0 0 478 0 4,394

Kentucky 257 0 8 0 48 358 0 0 428 166 0 3 0 1,268

Louisiana 0 0 105 0 0 285 1 0 328 0 0 0 0 719

Michigan 16 0 234 0 0 235 0 0 298 0 0 115 0 898

Ohio 509 0 1,472 0 0 3,359 0 0 2,454 0 56 424 82 8,356

Oklahoma 0 0 650 34 8 2,244 10 0 776 0 0 0 0 3,722

Tennessee 0 0 0 92 0 154 0 0 2 0 0 29 0 277

Texas 0 0 1,365 0 0 4,791 15 0 4,455 0 0 0 0 10,626

W. Virginia 382 16 329 0 0 1,448 0 37 437 686 0 57 0 3,392

Virginia 349 95 69 15 0 1,613 0 0 628 48 0 98 0 2,915

Total 2,128 111 5,718 141 361 16,186 39 37 10,694 900 56 1,204 82 37,657

Note: Transmission line circuit miles are current as of 12/31/16; excludes ETT, OVEC and Joint Ventures

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DISTRIBUTION LINE DETAIL

Note: Year End 2016 data per Small World Graphics.

By

Operating

By State Line Miles* Company Line Miles*

Arkansas 3,991 | AEP Texas 43,182

Indiana 15,070 | APCo 51,438

Kentucky 10,042 | I&M 20,425

Louisiana 12,589 | KGPCo 1,572

Michigan 5,355 | KPCo 10,042

Ohio 45,726 | OPCo 45,727

Oklahoma 19,886 | PSO 19,886

Tennessee 1,572 | SWEPCo 25,096

Texas 51,698 | WPCo 1,537

Virginia 31,128 |

W. Virginia 21,848 |

Total 218,905 Total 218,905

* Includes approximately 34,000 miles of underground circuit miles

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RATE BASES & ROEs

1 Rate base represents Net Utility Plant

plus Regulatory Assets less Net

Accumulated Deferred Income Taxes and

less Regulatory Liabilities from 2016 FERC

Form 1.

2 Operating ROE adjusts GAAP results by

eliminating any material nonrecurring items

and is not weather normalized. 12-month

rolling ROE.

3

Represents the midpoint of the ROE

range approved in the formula rate case

settled in February 2014.

4 ROE is 11.1% adjusted for SEET items.

* 10.4% Allowed top of band, 70 BPS

above authorized 9.7%, as approved in

2014. Base rates subsequently frozen in

VA by the Feb. 2015 Rate Freeze Law. A

9.4% ROE was approved in October 2016

to be applied to Rate Adjustment Clauses

(RACS) only.

** Per ESP III Order .

Chart excludes AEG's Rockport plant

investment. AEG sells capacity & energy

to I&M and KPCo under a PPA.

Vertically Integrated Utilities

Jurisdiction

Pro Forma Rate

Base1

($ millions)

Operating2 Earned ROE

as of 9/30/2017

Approved

ROE

Approved

Debt/Equity

Effective Date of last approved

rate case

APCo-Virginia 10.40%* 57/43 2/2/15

APCo-West Virginia/WPCo 9.75% 53/47 5/27/15

APCo - FERC 11.06% 54/46 6/1/16

APCo/WPCo Total $8,220 8.4%

Kingsport Power - Tennessee 9.85% 58/42 8/9/16

KgPCo- TN Total $106 8.5%

KPCo -Distribution/Generation 10.25% 56/44 7/1/15

KPCo-Kentucky Total $1,663 4.5%

I&M-Indiana 10.20% 48/52 2/28/13

I&M-Michigan 10.20% 49/51 3/29/12

I&M - FERC 10.81% 44/56 6/1/16

I&M Total $4,713 8.4%

PSO- Distribution/Generation 9.50% 56/44 1/15/16

PSO-Oklahoma Total $2,840 6.1%

SWEPCO-Louisiana 10.00%3 48/52 8/1/15

SWEPCO-Arkansas 10.25% 54/46 11/24/09

SWEPCO-Texas 9.65% 51/49 1/29/13

SWEPCO - FERC 11.10% 50/50 1/1/16

SWEPCO Total $4,902 5.9%

Transmission and Distribution Companies

Jurisdiction

Proforma Rate

Base1

($ millions)

Operating2 Earned ROE

as of 9/30/2017

Approved

ROE

Approved

Debt/Equity

Effective Date of last approved

rate case

AEP Ohio - Distribution** 10.20% 52/48 2/25/15

AEP Ohio - Transmission 11.49% 50/50 7/1/16

AEP Ohio Total $4,569 12.6%4

AEP Texas Central $2,881 9.96% 60/40 5/29/07

AEP Texas North $1,168 9.96% 60/40 3/4/08

AEP Texas Total $4,049 10.3%

Transcos

Company

Proforma Rate

Base1

($ millions)

Operating2 Earned ROE

as of 9/30/2017

Approved

ROE

Approved

Debt/Equity

Effective Date of last approved

formula rate filing

AEP Ohio Transco $1,827 14.0% 11.49% 50/50 7/1/16

AEP Kentucky Transco $63 10.8% 11.49% 50/50 7/1/16

AEP Indiana Michigan Transco $1,048 12.4% 11.49% 50/50 7/1/16

AEP West Virginia Transco $571 10.7% 11.49% 50/50 7/1/16

AEP Oklahoma Transco $635 10.0% 11.20% 50/50 7/1/16

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SUMMARY OF RATE CASE FILING REQUIREMENTS FERC

AR IN KY LA MI OH OK TN TX VA WV FERC Transmission

GENERAL

Time Limitations Between Cases No Yes No No No No No No No Yes No N/A N/A

Rates Effective Subject to Refund Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes

Fuel Clause Renewal Frequency Annually Semi-Annually Monthly Monthly Annually N/A Annually Annually

Tri-

Annually Annually Annually N/A N/A

Approx # of months after filing to

implement rates 10

10 @ 50% if

no order 6 4 10 9 6 9 6

10

Note 8 10 2 or 7 Varies

Approx # of months after filing order

expected 10 10 6 4 10 9 6 9 6 8 10 2 or 7 N/A

Notice of Intent

Prior PSC Notice Required? Yes Yes Yes No Optional Yes Yes No Yes Yes Yes No No

Notice Period (days) 60 Varies 28 N/A 45 30 45 N/A 30 60 30 No No

CASE COMPONENTS

Base Case Test Year

Partially

Projected

Hist.(Forecast

Opt/ Hybrid)

Forecast

Optional

Hist.

(Formula

Rate)

Forecast

Optional

Partially/Fully

Projected Hist. Hist. Hist. Hist. Hist. Forecast

Historical/

Forecast Filed

Post Test/Year Adjustment Period

(Months) 12 12 12 -- -- --

Min 6,

no max 18 -- 3 12 -- Varies

Cash Return on CWIP Partial

Limited

Note 2

Optional

Note 3

Partial

Note 1 Yes

Limited

Note 4

No

Note 1 Yes

Limited

Note 5 Yes Note 7

Limited

Note 6 Varies

Note 1: CWIP that is projected to be placed into service within six months post test year is included in rate base (for LA, under separate docket only). No CWIP in annual formula rates.

Note 2: CWIP is not included in rate base for a general rate case. However, for Clean Coal Technology using Indiana Coal or Qualified Pollution Control Property, Cook Life Cycle Management

Projects and Federally Mandated Projects the Commission may add CWIP to utility property for ratemaking purposes between rate cases via a surcharge. In addition, legislation

(SB 251) was passed that will allow CWIP recovery through a tracker for Cook Life Cycle Management projects.

Note 3: KPCo uses capitalization instead of rate base which includes CWIP, however, there is also a partial AFUDC offset which partially negates the cash return effect of CWIP

in capitalization or rate base.

Note 4: Ohio (ESP) cases are cost-based. Distribution cases are cost-of-service based.

Note 5: Can request inclusion in rate base but requires a showing that it is needed to maintain financial integrity. The financial integrity standard in Texas is not clearly defined and has been

essentially impossible to meet.

Note 6: The general FERC rule has been to allow CWIP in rate base.

Note 7: Allows environmental CWIP in Rate Base.

Note 8: The SCC is required to issue a biennial order within 8 months of filing. Rates are to be implemented 60 days after order and are NOT subject to refund. Depending on the nature of the

RAC, the SCC has a statutory limit to issue decisions within 3 months for a transmission cost recovery RAC, 8 months for a environmental compliance, RPS-RAC or DR/EE-RAC,

and 9 months for cost recovery related to a new generating facility.

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RETAIL RECOVERY MECHANISMS BY JURISDICTION Company State

SO2/Nox/CO2

Allowances & GHG

Offsets

Distribution

Vegetation

Management

Environmental

Investment Energy Efficiency

Renewables

Investment REPA

Other Purchased

Power

(Energy/Capacity)

OATT

I&M Indiana ECCR BR CCTR/FMR/BR

DSM/EE Program

Cost Rider SPR/BR FAC/BR FAC/BR BR/PJM Tracker

Michigan PSCR BR BR EO Rider BR PSCR/RES PSCR/PSCR PSCR

KPCo Kentucky Surcharge BR Surcharge DSM Adj. Clause BR N/A FAC/Tariff PPA BR

AEP Ohio Ohio N/A ESRR N/A EE/PDR

Rider N/A AER N/A BTCR

KGPCo Tennessee FERC Tariff BR/TRP&MS FERC Tariff N/A N/A N/A FERC Tariff FPPAR

APCo Virginia BR BR ERAC/BR EERAC GRAC/BR RPSRAC/FF FAC/BR & FF TRAC

West Virginia ENEC VMP

Surcharge ENEC/BR

EE/DR Recovery

Rider BR ENEC ENEC/ENEC ENEC

Arkansas ECR BR Surcharge/BR EECR BR ECR ECR/BR BR

SWEPCo Louisiana EAC Formula BR/FAC Formula BR EECR/Formula BR Formula BR FAC FAC/Formula BR Formula BR

Texas (SPP) BR BR BR EECRF BR FAC FAC/BR TCRF

AEP TX Texas (ERCOT) N/A BR N/A EECRF /BR N/A N/A N/A TCOS

PSO Oklahoma BR BR BR DSM Cost

Recovery Rider BR FAC FAC BR/SPP Tracker

AER - Alternative Energy Rider EERAC – EE Rate Adjustment Clause PJM – PA-NJ-MD Regional Transmission Org

BR - Base Rates ENEC - Expanded Net Energy Cost PPA – Purchase Power Agreement

BTCR – Basic Transmission Cost Rider EO – Energy Optimization PSCR- Power Supply Cost Recovery Rider

CCTR - Clean Coal Technology Rider ERAC - Environmental Rate Adjustment Clause RPSRAC – Renewable Portfolio Standard RAC

CO2 – Carbon Dioxide ESRR - Enhanced Service Reliability Rider RES – Renewable Energy Surcharge

DSM - Demand Side Management FAC - Fuel Adjustment Clause SPP – Southwest Power Pool Regional Transmission Org

EAC - Environmental Adjustment Clause FERC – Federal Energy Regulatory Commission SPR – Solar Power Rider

ECR - Energy Cost Recovery Rider FF – Fuel Factor TCOS - Transmission Cost of Service

ECCR – Environmental Compliance Cost Rider FMR – Federal Mandate Rider TCRF - Transmission Cost Recovery Factor

EE - Energy Efficiency FPPAR – Fuel Purchase Power Adj Rider TRAC – Transmission Rate Adjustment Clause

EE/DR – Energy Efficiency/Demand Response GHG- Green House Gas TRP&MS- Targeted Reliability Plan and Major Storms

EE/PDR - EE Peak Demand Response Rider GRAC – Generation Rate Adjustment Clause VMP – Vegetation Management Plan

EECR - EE Cost Rate Rider NOx- Nitrogen Oxide

EECRF - Energy Efficiency Cost Recovery Factor Rider OATT – Open Access Transmission Tariff

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STORM O&M RECOVERY MECHANISMS BY JURISDICTION

State

Ability to

Defer

Description

Latest

Approved

Recovery

Period

(in years)

Arkansas Yes Storm costs are normally expensed as incurred. However, if a storm is ruled to be significant, Commission has

granted authority to request recovery in base rates or a separate proceeding.

3

Indiana Yes Recovery of storm costs is requested in base rate cases. 2011 base case established a $4M annual major

storm reserve based on 5-year historical average of major storm expenses and includes over-/under-recovery.

N/A

Kentucky Yes Recovery of storm costs is requested in base rate cases. Commission approval for deferral is required. 5

Louisiana No Storm costs are expensed as incurred and included for recovery in years of formula rate filings. N/A

Michigan No Recovery of storm costs is requested in base rate cases which use forecasted test years. N/A

Ohio Yes 2011 Distribution Base Case and 2014 Electric Security Plan orders established a $5M annual major storm

reserve and annual true-up mechanism. Recovery of significant storms are requested in separate

proceedings.

1

Oklahoma Yes Recovery of storm costs is requested in base rate cases with over-/under-recovery above/below $2.9M

annually. Recovery of significant storm costs is separately requested.

4

Tennessee Yes Recovery of storm costs is requested in base rate cases. Effective October 2017, a reliability/storm rider

provides for over-/under-recovery of incremental storm-related costs compared to what is recovered in base

rates.

1

Texas (SWEPCo) Yes Storm costs are normally expensed as incurred. However, storm costs may be deferred for recovery if the

costs are included in the test period of a base case filing.

3

Texas (North) No Storm costs are normally expensed as incurred and are included in base rates during the test year. N/A

Texas (Central) Yes Approved catastrophe reserve ($1.3M annually) in base rates allows deferral of all storm costs above $500K

with recovery in base rates or potential securitization.

N/A

Virginia No Based on legislation enacted in 2015, APCo will expense incremental storm costs through 2017 associated

with severe weather events and/or natural disasters. Absent specific APCo request and commission approval,

any incremental storms will continued to be expensed beyond 2017.

N/A

West Virginia Yes Recovery of storm costs is requested in base rate cases. 5

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JURISDICTIONAL OFF-SYSTEM SALES SHARING SUMMARY

State OSS Sharing? Detail

Arkansas Yes, above base levels

Up to $1,200,000 annual margin, customers receive

100%. Above $1,200,000, customers receive 90%.

Indiana Yes, above and below base levels

Sharing occurs above and below levels included in base

rates of $26.9M. Customers receive 50%.

Kentucky Yes, above and below base levels Sharing occurs above and below levels included in base

rates of $15.1M. Customers receive 75%.

Louisiana Yes, above base levels Up to $874,000 annual margin, customers receive 100%.

From $874,001 to $1,314,000, customers receive 85%.

Above $1,314,000, customers receive 50%.

Michigan Yes 80% of profits are shared with customers

Ohio No N/A

Oklahoma Yes 90% of profits are shared with customers *

Tennessee No N/A

Texas (SWEPCo) Yes 90% of profits are shared with customers

Virginia Yes 75% of profits are shared with customers

West Virginia Yes With the exception of WPCo’s Mitchell Plant, 100% of

profits are passed back to customers through the

Expanded Net Energy Cost (ENEC) clause. Generally,

82.5% of Mitchell Plant profits are shared with customers.

* Percentage changed to 90% in January 2017

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COMMISSION OVERVIEW

Commissioners

Number: 3* Appointed/Elected: Appointed Term: 5 Years Political Makeup: R: 2 D: 1

Qualifications for Commissioners

The Federal Energy Regulatory Commission (FERC) is composed of up to five commissioners who are appointed by the President of the

United States with the advice and consent of the Senate. Commissioners serve five-year terms and have an equal vote on regulatory matters.

To avoid any undue political influence or pressure, no more than three commissioners may belong to the same political party.

Commissioners

Neil Chatterjee, Chairman (Rep.) since 2017: term expires June 2021. Commissioner Chatterjee assumed chairmanship in August 2017.

Prior to joining the Commission, he was energy policy advisor to U.S. Senate Majority Leader Mitch McConnell (R-KY), Over the years, he

has played an integral role in the passage of major energy, highway and agriculture legislation. Prior to serving Leader McConnell, he worked

as a principal in government relations for the National Rural Electric Cooperative Association and as an aide to House Republican Conference

Chairwoman Deborah Pryce (R-OH). He began his career in Washington, D.C., with the House Committee of Ways and Means.

Robert F. Powelson, Commissioner (Rep.) since 2017: term expires June 2020. Most recently served as Commissioner for the

Pennsylvania Public Utility Commission, where he served since June 2008, and lead as Chairman from February 2011-May 2015. Under

Commissioner Powelson’s leadership, Pennsylvania ratepayers had an active voice on issues such as nuclear power production, renewable

investment, broadband deployment, infrastructure development and cyber security. Commissioner Powelson is past president of the National

Association of Regulatory Utility Commissioners (NARUC) and participated in NARUC activities on climate policy, critical infrastructure and

nuclear waste disposal.

Cheryl A. LaFleur, Commissioner (Dem.) since 2010: second term expires June 2019. She served as Acting Chairman from November

2013 to July 2014 and from January 2017 to August 2017 and as Chairman from July 2014 until April 2015. Prior to joining the Commission

in 2010, Commissioner LaFleur had more than 20 years’ experience as a leader in the electric and natural gas industry. She served as

executive vice president and acting CEO of National Grid USA, responsible for the delivery of electricity to 3.4 million customers in the

Northeast. Her previous positions at National Grid USA and its predecessor New England Electric System included chief operating officer,

president of the New England distribution companies and general counsel.

* As of October 16, 2017, two nominees awaited a final confirmation vote by the U.S. Senate: Richard Glick (Dem.) for a term expiring June 2022 and

Kevin McIntyre (Rep.) for a term expiring June 2018 and automatic reappointment for a term expiring June 2023. If confirmed, President Trump

intends to name Mr. McIntyre as Chairman.

Federal Energy Regulatory Commission

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TRANSFORMING OUR GENERATION FLEET

• Transforming Our Generation Fleet

• Investments Driving Emission Reductions

• Dramatic Reductions in Emissions

• Large-scale Renewable Opportunities

• Delivering Clean Energy Resources

• Renewable Resources

• Renewable Portfolio/Energy Efficiency

Standards

• Regulated & Competitive Retirements

• Regulated Environmental Controls

• Competitive Environmental Controls

• Additional Environmental Regulations

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TRANSFORMING OUR GENERATION FLEET

AEP'S GENERATING RESOURCE PORTFOLIO PAST AND FUTURE

Excludes impact of Wind Catcher.

Future includes IRP forecasted additions and retirements through 2030.

Energy Efficiency / Demand Response represents avoided capacity rather than physical assets.

66%

22%

7% 4%

1%

70%

19%

6% 4% 1%

47%

27%

7%

13%

6%

33%

24%

6%

30%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1999 2005 2017 Future

1999 2005 2017 Future

1999 2005 2017 Future

2%

26% 6%

Nuclear

1%

Natural Gas Coal Hydro, Wind, Solar

& Pumped

Energy Efficiency /

Demand Response

33%

1999 2005 2017 Future

1999 2005 2017 Future

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INVESTMENTS DRIVING EMISSION REDUCTIONS

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DRAMATIC REDUCTIONS IN EMISSIONS

SO2

90%

94%

1990-2016

ACTUAL

NOx

Hg 93%

2001-2016

ACTUAL

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DRAMATIC REDUCTIONS IN EMISSIONS

CO2

2000-2016

actual

44%

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INVESTING IN A GREENER FUTURE

Source: Current Internal Integrated Resource Plans. Excludes impact of Wind Catcher. Reflects PSO’s Integrated Resource Plan filed 11/1/17.

Actual additions depend on market conditions, regulatory approval, customer demand and other external factors.

Wind and solar represents nameplate MW capacity.

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AEP's 2017 Renewable Portfolio, in MW

Hydro, Wind, Solar & Pumped Storage Owned MW PPA MW Total MW

AEP Ohio 209 209

Appalachian Power Company 788 455 1,243

Indiana Michigan Power Company 38 450 488

Public Service of Oklahoma 1,137 1,137

Southwestern Electric Power Company 469 469

Competitive Wind, Solar & Hydro 475 177 652

Total 1,301 2,897 4,198

DELIVERING CLEAN ENERGY RESOURCES

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RENEWABLE RESOURCES Owned Renewables PPA Renewables Total

Company & Plant Name State Hydro Wind Solar Total

Owned Hydro Wind Solar

Total

PPA

Appalachian Power Company

Buck VA 9 9 9

Byllesby VA 22 22 22

Claytor VA 76 76 76

Leesville VA 50 50 50

London WV 14 14 14

Marmet WV 14 14 14

Niagara VA 2 2 2

Winfield WV 15 15 15

Smith Mtn Pumped VA 586 586 586

Camp Grove WV 75 75 75

Beech Ridge VA 101 101 101

Fowler Ridge III OH 99 99 99

Grand Ridge II & III WV 100 100 100

Gauley River / Summersville WV 80 80 80

Total 788 788 80 375 455 1,243

Indiana Michigan Power Company

Berrien Springs MI 7 7 7

Buchanan MI 4 4 4

Constantine MI 1 1 1

Elkhart IN 3 3 3

Mottville MI 2 2 2

Twin Branch IN 5 5 5

Watervliet MI 5 5 5

Olive IN 5 5 5

Deer Creek IN 3 3 3

Twin Branch IN 3 3 3

Fowler Ridge I IN 100 100 100

Fowler Ridge II IN 50 50 50

Wildcat IN 100 100 100

Headwaters IN 200 200 200

Total 22 16 38 450 450 488

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Owned Renewables PPA Renewables Total

Company & Plant Name State Hydro Wind Solar Total

Owned Hydro Wind Solar

Total

PPA

Ohio Power Company

Fowler Ridge II OH 100 100 100

Wyandot Solar OH 10 10 10

Timber Road OH 99 99 99

Total 199 10 209 209

Public Service Company of Oklahoma

Weatherford OK 147 147 147

Sleeping Bear OK 94 94 94

Blue Canyon V OK 99 99 99

Minco OK 99 99 99

Elk City OK 99 99 99

Balko OK 200 200 200

Seling OK 199 199 199

Goodwell OK 200 200 200

Total 1,137 1,137 1,137

Southwestern Electric Power Company

Majestic TX 79 79 79

Majestic II TX 80 80 80

Flat Ridge II KS 109 109 109

Canadian Hills OK 201 201 201

Total 469 469 469

Total Regulated Renewables 810 16 826 80 2,630 10 2,720 3,546

Competitive Trent Mesa TX 150 150 150

Desert Sky TX 161 161 161

Southwest Mesa TX 177 177 177

Racine OH 48 48 48

AEP Renewables 90 90 90

AEP Onsite Partners 26 26 26

Total Competitive Renewables 48 311 116 475 177 177 652

Total AEP Renewable Resources 858 311 132 1,301 80 2,807 10 2,897 4,198

RENEWABLE RESOURCES

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RENEWABLE PORTFOLIO/ENERGY EFFICIENCY STANDARDS

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REGULATED & COMPETITIVE RETIREMENTS SINCE 2011

Operating Company Plant MW Retirement Date

APCo Glen Lyn 5 95 2015

Glen Lyn 6 240 2015

Clinch River 3 235 2015

Sporn 1 150 2015

Sporn 3 150 2015

Kanawha River 1 200 2015

Kanawha River 2 200 2015

Total MW 1,270

I&M Tanners Creek 1-4 995 2015

Total MW 995

KPCo Big Sandy 2 800 2015

Total MW 800

SWEPCo Welsh 2 528 2016

Total MW 528

PSO Northeastern 4 470 2016

Total MW 470

Total Regulated Retirements 4,063

Operating Company Plant MW Retirement Date

AEP Generation Resources Beckjord 53 2014

Conesville 3 165 2012

Muskingum River 1-5 1,440 2015

Picway 5 100 2015

Sporn 2,4 300 2015

Sporn 5 450 2011

Kammer 1-3 630 2015

Total Competitive Retirements 3,138

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REGULATED ENVIRONMENTAL CONTROLS

Plant Name

MW

Capacity

SCR

Projected

In-Service FGD

Projected

In-Service ACI

Projected

In-Service DSI

Projected

In-Service Baghouse

Projected

In-Service

Gas

Conversion

Projected

In-Service

APCo

Amos 1

800

Amos 2

800

Amos 3

1,330

Clinch River 1

230

Clinch River 2

235

Mountaineer

1,320

WPCo

Mitchell 1&2*

780

KPCo

Big Sandy 1

280

Mitchell 1&2*

780

I&M/AEG (50/50 share)

Rockport 1

1,310

2017 x 2025

Rockport 2

1,310 x 2020 x 2028

In Service Projected * Operated by Kentucky Power

ACI – Activated Carbon Injection DSI – Dry Sorbent Injection FGD – Flue Gas Desulfurization SCR – Selective Catalytic Reduction Baghouse

(Mercury Control) (SO3 Control) (SO2 Control) (NOx Control) (Particulate Matter)

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Plant Name

MW

Capacity SCR

Projected

In-Service FGD

Projected

In-Service ACI

Projected

In-Service DSI

Projected

In-Service Baghouse

Projected

In-Service

Gas

Conversion

Projected

In-Service

PSO

Oklaunion 105

Northeastern 3 469

SWEPCo

Dolet Hills 256

Flint Creek 1 264

Pirkey 580

Turk 477

Welsh 1 525 x 2024

Welsh 3 528 x 2024

In Service Projected

ACI – Activated Carbon Injection DSI – Dry Sorbent Injection FGD – Flue Gas Desulfurization SCR – Selective Catalytic Reduction Baghouse

(Mercury Control) (SO3 Control) (SO2 Control) (NOx Control) (Particulate Matter)

REGULATED ENVIRONMENTAL CONTROLS

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COMPETITIVE ENVIRONMENTAL CONTROLS

Plant Name MW Capacity SCR FGD ACI

Gore Mercury

Control

AEP Generation Resources

Cardinal 1 595

Conesville 4 651

Conesville 5 405

Conesville 6 405

Stuart 1-4 603

AEP Texas

Oklaunion* 355

In Service Projected * Owned by AEP Texas North, PPA with Competitive

ACI – Activated Carbon Injection FGD – Flue Gas Desulfurization SCR – Selective Catalytic Reduction

(Mercury Control) (SO2 Control) (NOx Control)

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ADDITIONAL ENVIRONMENTAL REGULATIONS Revised Effluent Limitation Guidelines (“ELG”) – Final rule went into effect January 2016, but the Federal EPA has

reopened parts of the rule

• Establishes more stringent standards for wastewater discharge from steam electric generating units

• Considers water treatment systems for wastewater from FGD control systems and ash handling and storage

processes

• Initial compliance deadline was delayed two years until Nov 1, 2020

Note: The Federal EPA will be reconsidering the requirements for bottom ash transport and FGD wastewater

Coal Combustion Residuals Rule (“CCR”) – Final rule went into effect October 2015

• Applies to the handling and storage of coal combustion and emission control system by-products (ash ponds

and landfills)

• Requires the collection of groundwater monitoring data, which is on schedule

Note: The Federal EPA indicated it will reconsider parts of this rule, although the schedule for doing so is uncertain

ELG and CCR Implementation Strategy

• The implementation strategy is being reviewed given the Federal EPA’s decision to reconsider both rules

• Compliance solutions based on the initial rules have been included in capital cost estimates

• Efforts are underway to optimize the costs of technology options

Revised Clean Water Act 316(b) Standards – Final rule went into effect October 2014

• Applies to the cooling water intake systems

• Does not mandate cooling towers, but does require studies of site-specific constraints

• With the rule finalized, plans are being refined and expected to be generally consistent with prior estimates

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FINANCIAL UPDATE

• Capitalization & Liquidity

• Pension & OPEB Estimates

• AEP Banking Group

• AEP Credit Ratings

• Long-Term Debt Maturity Profile

• Debt Schedules

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CAPITALIZATION & LIQUIDITY

Liquidity Summary

Credit Statistics Total Debt / Total Capitalization

Qualified Pension Funding

Actual Target

FFO to Total Debt 17.4% 15%-20%

Represents the trailing 12 months as of 9/30/2017

(unaudited) 9/30/2017 Actual

($ in millions) Amount Maturity

Revolving Credit Facility $3,000 Jun-21

Plus

Cash & Cash Equivalents 344

Less

Commercial Paper Outstanding (295)

Letters of Credit Issued -

Net Available Liquidity $3,049

Strong balance sheet, credit metrics and liquidity

55.2% 54.3% 54.3% 53.2% 55.9% 54.0% 54.5% 54.6%

Short/Long Term Debt Securitization Debt

92% 99% 97% 97% 96% 98% 99% 100%

2012 2013 2014 2015 2016 Q1-17 Q2-17 Q3-17

2012 2013 2014 2015 2016 Q1-17 Q2-17 Q3-17

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PENSION & OPEB ESTIMATES

Qualified Pension Funding

92% 99% 97% 97% 96% 100%

2012 2014 2013 2015 3Q2017 2016

• YTD pension returns up 9.9% due to

strong investment performance,

including 20% returns in the global

equity portfolio. OPEB returns are

up 14.5%, also due to strong global

equity gains. OPEB obligations

remain fully funded at 112%.

• 2018 is subject to potential changes

in investment results, interest rates

and actuarial assumptions.

• Pension expense for regulated

subsidiaries is recovered through

base rates.

Assumptions 2017E 2018E

Pension Discount Rate 4.05% 4.44%

OPEB Discount Rate 4.10% 4.49%

Assumed Long Term Rate of

Return on Pension Assets 6.00% 6.25%

Assumed Long Term Rate

of Return on OPEB Assets 6.75% 6.00%

Pension/OPEB Funding * $98M $97M

Pension/OPEB O&M (Pre-tax) * $20M $9M

* Excludes non-qualified retirement plan

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AEP BANKING GROUP

Lender Composition

Lender mix gives AEP

geopolitical diversification

$3.0B Core Credit Facilities

%Share

Bank of America Major US Bank 6.5%

Bank of Tokyo-Mitsubishi Japanese Bank 6.5%

Barclays Bank British Bank 6.5%

Citibank Major US Bank 6.5%

JP Morgan Major US Bank 6.5%

Mizuho Japanese Bank 6.5%

The Bank of Nova Scotia Canadian Bank 6.5%

Wells Fargo Major US Bank 6.5%

Bank of New York US Regional Bank 4.0%

BNP Paribas European Bank 4.0%

Credit Agricole European Bank 4.0%

Credit Suisse Investment Bank 4.0%

Goldman Sachs Investment Bank 4.0%

Key Bank US Regional Bank 4.0%

Morgan Stanley Investment Bank 4.0%

PNC Financial US Regional Bank 4.0%

Royal Bank of Canada Canadian Bank 4.0%

SunTrust Bank US Regional Bank 4.0%

UBS Investment Bank 4.0%

Fifth-Third Bank US Regional Bank 2.6%

Huntington National Bank

US Regional Bank

1.4%

Total 100.0%

20%

26%

16%

13%

8%

6%

11%

US Regional Bank Major US Bank

Investment Bank Japanese Bank

European Bank British Bank

Canadian BankNo

Change

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AEP CREDIT RATINGS

Moody's S&P

Company

Senior Senior

Unsecured Outlook Unsecured Outlook

American Electric Power Company Inc. Baa1 P BBB+ S

AEP, Inc. Short Term Rating P2 S A2 S

AEP Texas Inc. Baa1 S A- S

AEP Transmission Company, LLC (1) A2 S A- S

Appalachian Power Company (2) Baa1 S A- S

Indiana Michigan Power Company (2) Baa1 P A- S

Kentucky Power Company Baa2 S A- S

Ohio Power Company A2 S A- S

Public Service Company of Oklahoma A3 S A- S

Southwestern Electric Power Company Baa2 S A- S

Transource Energy (3) A2 S NR NR

(1) AEP Transmission Co. received a solicited senior unsecured debt rating of A- from Fitch. The rating outlook

is Stable.

(2) In conjunction with the unenhanced VRDN remarketings, APCo and I&M both received short term credit

ratings of A-2/P2 from S&P and Moody’s, respectively.

(3) NR = Not Rated

Ratings current as of October 27, 2017

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LONG-TERM DEBT MATURITY PROFILE

Year 2017 2018 2019 2020 2021 2022

AEP, Inc. $550.0 $0.0 $0.0 $0.0 $0.0 $300.0

AEP Generating Company $45.0 $125.0 $0.0 $0.0 $0.0 $0.0

AEP Texas* $40.9 $30.0 $250.0 $110.6 $0.0 $425.0

AEP Transmission Company $0.0 $50.0 $85.0 $0.0 $50.0 $104.0

Appalachian Power* $0.0 $100.0 $281.0 $65.4 $367.5 $0.0

Indiana Michigan Power $0.9 $300.0 $539.2 $49.9 $154.4 $0.0

Kentucky Power $0.0 $75.0 $0.0 $65.0 $40.0 $0.0

Ohio Power* $0.0 $350.0 $0.0 $0.0 $500.0 $0.0

Public Service of Oklahoma $0.0 $0.0 $375.0 $12.7 $250.0 $0.0

Southwestern Electric Power $0.0 $381.7 $453.5 $115.0 $0.0 $275.0

Wheeling Power Company $0.0 $65.0 $0.0 $0.0 $0.0 $113.0

Total $637 $1,477 $1,984 $419 $1,362 $1,217

* Excludes securitization bonds

Includes mandatory tenders (put bonds)

Data as of September 30, 2017

($ in millions)

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DEBT SCHEDULES

Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

American Electric Power, Inc Interest Maturity CUSIP / PPN* Amount

Senior Notes, Series E 1.650% 12/15/2017 025537AF8 $550,000,000

Senior Notes, Series F 2.950% 12/15/2022 025537AG6 $300,000,000

Total $850,000,000

AEP Generating Company Interest Maturity CUSIP / PPN* Amount

City of Rockport, Series 1995 A Floating 07/01/2025 773835BG7 $22,500,000 1

City of Rockport, Series 1995 B Floating 07/01/2025 773835BH5 $22,500,000 1

Term Loan Floating 12/15/2018 00104NAD6 $125,000,000

Total $170,000,000

1 Liquidity Letter of Credit matures on 7/15/2019, but may be purchased on demand

AEP Generation Resources Interest Maturity CUSIP / PPN* Amount

State of Ohio, Air Quality Bonds 2009B 5.800% 12/01/2038 677525TM9 $32,245,000

Total $32,245,000

2

2 Debt on Ohio Power Company, but the obligation is AEP Generation Resources through an intercompany note

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DEBT SCHEDULES

Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

AEP Texas Interest Maturity CUSIP / PPN* Amount

Red River Authority of Texas PCRB (CPL, PSO, WTU) 4.450% 06/01/2020 756864BT0 $44,310,000

Senior Note, Series 2008A 5.890% 04/01/2018 0010EQA*7 $30,000,000

Senior Note, Series 2008B 6.760% 04/01/2038 0010EQA@5 $70,000,000

Senior Notes, Series C 3.090% 02/28/2023 0010EQA#3 $125,000,000

Senior Notes, Series D 4.480% 02/27/2043 0010EQB*6 $75,000,000

Bank Term Loan Floating 07/25/2019 N/A $75,000,000

Senior Note, Series E 3.270% 09/30/2022 0010EQB@4 $25,000,000

Senior Note, Series F 3.750% 09/30/2025 0010EQB#5 $50,000,000

Senior Note, Series G 4.710% 12/15/2035 0010EQ C*5 $50,000,000

Senior Note, Series A 2.400% 10/01/2022 00108WAA8 $400,000,000

Senior Note, Series B 3.800% 10/01/2047 00108WAB6 $300,000,000

Guadalupe-Blanco River Authority PCRB, Series 2008 5.625% 10/01/2017 400530AQ4 $40,890,000

Red River Authority of Texas PCRB (CPL, PSO, WTU) 4.450% 06/01/2020 756864BT0 $6,330,000

Matagorda PCB Series 2001A 6.300% 11/01/2029 576528DM2 $100,635,000

Matagorda Cnty Navigation Dist. #1 PCRB, Series 2008-1 4.000% 06/01/2030 576528DP5 $60,265,000

Matagorda Cnty Navigation Dist. #1 PCRB, Series 2008-2 4.000% 06/01/2030 576528DQ3 $60,000,000

Matagorda Cnty Navigation District #1, Series 1996 1.750% 05/01/2030 576528DS9 $60,000,000 1

Matagorda Cnty Navigation District #1, Series 2005A 4.400% 05/01/2030 576528CY7 $111,700,000

Matagorda Cnty Navigation District #1, Series 2005B 4.550% 05/01/2030 576528CZ4 $50,000,000

Bank Term Loan Floating 07/25/2019 N/A $125,000,000

1 Put date is 09/01/2020

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41 52nd EEI Financial Conference | aep.com

Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

AEP Texas (continued) Interest Maturity CUSIP / PPN* Amount

Senior Note, Series B 6.650% 02/15/2033 0010EPAF5 $275,000,000

Senior Note, Series A 2.610% 04/30/2019 0010EPA*9 $50,000,000

Senior Note, Series B 3.810% 04/30/2026 0010EPA@7 $50,000,000

Senior Note, Series C 4.670% 04/30/2044 0010EPA#5 $100,000,000

Senior Note, Series D 4.770% 10/30/2044 0010EPB*8 $100,000,000

Senior Note, Series G 3.850% 10/01/2025 0010EPAN8 $250,000,000

Total $2,684,130,000

Securitization Bonds, Class 2006A-4 5.170% 01/01/2018 00110AAD6 $69,962,039

Securitization Bonds, Class 2006A-5 5.306% 07/01/2020 00110AAE4 $494,700,000

Securitization Bonds, Class 2012 A-1 0.880% 12/01/2017 00104UAA6 $7,387,936

Securitization Bonds, Class 2012 A-2 1.976% 06/01/2020 00104UAB4 $180,200,000

Securitization Bonds, Class 2012 A-3 2.845% 12/01/2024 00104UAC2 $311,900,000

Total $1,064,149,975

DEBT SCHEDULES

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DEBT SCHEDULES

Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

AEP Transmission Company Interest Maturity CUSIP / PPN* Amount

Senior Notes, Series A, Tranche 1 3.300% 10/18/2022 00114*AA1 $104,000,000

Senior Notes, Series A, Tranche 2 4.000% 10/18/2032 00114*AB9 $85,000,000

Senior Notes, Series A, Tranche 3 4.730% 10/18/2042 00114*AC7 $61,000,000

Senior Notes, Series A, Tranche 4 4.780% 12/14/2042 00114*AD5 $75,000,000

Senior Notes, Series A, Tranche 5 4.830% 03/18/2043 00114*AE3 $25,000,000

Senior Notes, Series B, Tranche 1 2.730% 11/07/2018 00114*AF0 $50,000,000

Senior Notes, Series B, Tranche 2 4.050% 11/07/2023 00114*AG8 $60,000,000

Senior Notes, Series B, Tranche 3 4.380% 11/07/2028 00114*AL7 $60,000,000

Senior Notes, Series B, Tranche 4 5.320% 11/07/2043 00114*AH6 $100,000,000

Senior Notes, Series B, Tranche 5 5.420% 04/30/2044 00114*AJ2 $30,000,000

Senior Notes, Series B, Tranche 6 5.520% 10/30/2044 00114*AK9 $100,000,000

Senior Notes, Series C, Tranche A 2.680% 11/14/2019 00114*AM5 $85,000,000

Senior Notes, Series C, Tranche B 3.180% 11/14/2021 00114*AN3 $50,000,000

Senior Notes, Series C, Tranche C 3.560% 11/14/2024 00114*AP8 $95,000,000

Senior Notes, Series C, Tranche D 3.660% 03/16/2025 00114*AQ6 $50,000,000

Senior Notes, Series C, Tranche E 3.760% 06/16/2025 00114*AR4 $40,000,000

Senior Notes, Series C, Tranche F 3.810% 11/14/2029 00114*AS2 $55,000,000

Senior Notes, Series C, Tranche G 4.010% 06/15/2030 00114*AT0 $60,000,000

Senior Notes, Series C, Tranche H 4.050% 11/14/2034 00114*AU7 $25,000,000

Senior Notes, Series C, Tranche I 4.530% 11/14/2044 00114*AV5 $40,000,000

Senior Notes, Series F 3.100% 12/01/2026 00115A AE9 $300,000,000

Senior Notes, Series D 3.100% 12/01/2026 00115A AA7 $125,000,000

Senior Notes, Series G 4.000% 12/01/2046 00115A AC3 $400,000,000

Senior Notes, Series H 3.750% 12/01/2047 00115A AG4 $500,000,000

Total $2,575,000,000

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Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

Appalachian Power Company Interest Maturity CUSIP / PPN* Amount

Bank Term Loan Floating 06/30/2019 N/A $125,000,000

West Virginia Economic Dev. Authority, Series 2008C 3.250% 05/01/2019 95648NAD9 $30,000,000

Russell County, Series K 4.625% 11/01/2021 782470AR9 $17,500,000

West Virginia Economic Dev. Authority, Series 2008D 3.250% 05/01/2019 95648NAE7 $40,000,000

Mason County, Series L 1.625% 10/01/2022 575200BB5 $100,000,000 1

West Virginia Economic Dev. Authority, Series 2008B Floating 02/01/2036 95648VAL3 $50,275,000

West Virginia Economic Dev. Authority, Series 2008A Floating 02/01/2036 95648VAW9 $75,000,000

West Virginia Economic Dev. Authority, Series 2010A 5.375% 12/01/2038 95648VAS8 $50,000,000

West Virginia Economic Dev. Authority, Series 2011A 1.700% 01/01/2041 95648VAZ2 $65,350,000 2

West Virginia Economic Dev. Authority, Series 2015A (Amos) 1.900% 03/01/2043 95648VAV1 $86,000,000 3

1 Put date 10/01/2018

2 Put date 09/01/2020

3 Put date 4/01/2019

DEBT SCHEDULES

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Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

Appalachian Power Company (continued) Interest Maturity CUSIP / PPN* Amount

Senior Note, Series H 5.950% 05/15/2033 037735BZ9 $200,000,000

Senior Note, Series L 5.800% 10/01/2035 037735CE5 $250,000,000

Senior Note, Series N 6.375% 04/01/2036 037735CG0 $250,000,000

Senior Note, Series P 6.700% 08/15/2037 037735CK1 $250,000,000

Senior Note, Series Q 7.000% 04/01/2038 037735CM7 $500,000,000

Senior Note, Series T 4.600% 03/30/2021 037735CR6 $350,000,000

Senior Note, Series U 4.400% 05/15/2044 037735CT2 $300,000,000

Senior Note, Series V 3.400% 06/01/2025 037735CU9 $300,000,000

Senior Note, Series W 4.450% 06/01/2045 037735CV7 $350,000,000

Senior Note, Series X 3.300% 06/01/2027 037735CW5 $325,000,000

Total $3,714,125,000

Securitization Bonds, Tranche A-1 2.008% 02/01/2023 037680AA3 $134,176,142

Securitization Bonds, Tranche A-2 3.772% 08/01/2028 037680AB1 $164,500,000

Total $298,676,142

DEBT SCHEDULES

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45 52nd EEI Financial Conference | aep.com

Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

Indiana Michigan Power Company Interest Maturity CUSIP / PPN* Amount

Law renceburg, Series I Floating 10/01/2019 520453AN1 $25,000,000

Rockport, Series D 2.050% 04/01/2025 773835BN2 $40,000,000 1

Rockport, Series 2002 A Floating 06/01/2025 773835AV5 $0

Law renceburg, Series H Floating 11/01/2021 520453AM3 $52,000,000

City of Rockport, Series 2009A 1.750% 06/01/2025 773835BL6 $50,000,000 2

City of Rockport, Series 2009B 1.750% 06/01/2025 773835BM4 $50,000,000 2

Bank Term Loan Floating 05/15/2018 45488QAA6 $200,000,000

DCC Fuel VI Floating Rate Floating 10/15/2017 N/A $902,666

DCC Fuel VII Floating Rate Floating 04/28/2019 N/A $15,055,514

DCC Fuel VIII Floating Rate Floating 10/27/2019 N/A $24,101,811

DCC Fuel IX Floating Rate Floating 10/29/2020 N/A $49,852,503

DCC Fuel X Floating Rate Floating 04/27/2021 N/A $62,363,605

Senior Note, Series H 6.050% 03/15/2037 454889AM8 $400,000,000

Senior Note, Series I 7.000% 03/15/2019 454889AN6 $475,000,000

Seinor Note, Series J 3.200% 03/15/2023 454889AP1 $250,000,000

Seinor Note, Series K 4.550% 03/15/2046 454889 AQ9 $400,000,000

Seinor Note, Series L 3.750% 07/01/2047 454889 AR7 $300,000,000

Total $2,394,276,099

1 Put date is 06/01/2021

2 Put date is 06/01/2018

DEBT SCHEDULES

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Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

Kentucky Power Interest Maturity CUSIP / PPN* Amount

Bank Term Loan Floating 11/05/2018 N/A $75,000,000

Senior Note, Series A 7.250% 06/18/2021 491386C*7 $40,000,000

Senior Note, Series B 8.030% 06/18/2029 491386C@5 $30,000,000

Senior Note, Series C 8.130% 06/18/2039 491386C#3 $60,000,000

Senior Note, Series D 5.625% 12/01/2032 491386AL2 $75,000,000

Senior Note, Series A 4.180% 09/30/2026 491386D*6 $120,000,000

Senior Note, Series B 4.330% 12/30/2026 491386D@4 $80,000,000

Senior Note, Series F 3.130% 09/12/2024 491386D#2 $65,000,000

Senior Note, Series G 3.350% 09/12/2027 491386E*5 $40,000,000

Senior Note, Series H 3.450% 09/12/2029 491386E@3 $165,000,000

Senior Note, Series I 4.120% 09/12/2047 491386E#1 $55,000,000

WV Economic Dev. Authority, Series 2014A (Mitchell) 2.000% 04/01/2036 N/A $65,000,000

Total $870,000,000

DEBT SCHEDULES

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Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

Ohio Power Company Interest Maturity CUSIP / PPN* Amount

Senior Note, Series B 6.600% 03/01/2033 199575AT8 $250,000,000

Senior Note, Series F 5.850% 10/01/2035 199575AV3 $250,000,000

Senior Note, Series G 6.050% 05/01/2018 199575AW1 $350,000,000

Senior Note, Series G Due 2/15/2033 6.600% 02/15/2033 677415CF6 $250,000,000

Senior Notes, Series M Due 10/1/2021 5.375% 10/01/2021 677415CP4 $500,000,000

Total $1,600,000,000

Securitization Bonds, Tranche A-2 2.049% 07/01/2019 67741YAB4 $94,878,311

Total $94,878,311

Public Service Company of Oklahoma Interest Maturity CUSIP / PPN* Amount

Red River Authority of Texas PCRB (CPL, PSO, WTU) 4.450% 06/01/2020 756864BT0 $12,660,000

Senior Note, Series H 5.150% 12/01/2019 744533BK5 $250,000,000

Senior Note, Series G 6.625% 11/15/2037 744533BJ8 $250,000,000

Senior Note, Series I 4.400% 02/01/2021 744533BL3 $250,000,000

Senior Note, Series A 3.170% 03/31/2025 744533C*9 $125,000,000

Senior Note, Series B 4.090% 03/31/2045 744533C@7 $125,000,000

Senior Note, Series C 3.050% 08/01/2026 744533C#5 $50,000,000

Senior Note, Series D 4.110% 08/01/2046 744533D*8 $100,000,000

Bank Term Loan Floating 11/04/2019 N/A $125,000,000

Total $1,287,660,000

DEBT SCHEDULES

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48 52nd EEI Financial Conference | aep.com

Note: Debt schedules current as of 9/30/17.

* PPN – Private Placement Number

Southwestern Electric Power Company Interest Maturity CUSIP / PPN* Amount

Bank Term Loan Floating 06/29/2020 N/A $115,000,000

Sabine Mines 6.370% 10/31/2024 78532*AC7 $25,000,000

Sabine Mines 4.580% 02/21/2032 78532*AD5 $47,125,000

Sabine River Authority of Texas, Series 2006 4.950% 03/01/2018 785652CJ5 $81,700,000

Parish of DeSoto, Series 2010 1.600% 01/01/2019 241627AW8 $53,500,000

Senior Note, Series F 5.875% 03/01/2018 845437BJ0 $300,000,000

Senior Note, Series G 6.450% 01/15/2019 845437BK7 $400,000,000

Senior Note, Series H 6.200% 03/15/2040 845437BL5 $350,000,000

Senior Note, Series I 3.550% 02/15/2022 845437BM3 $275,000,000

Senior Note, Series J 3.900% 04/01/2045 845437BN1 $400,000,000

Senior Note, Series K 2.750% 10/01/2026 845437BP6 $400,000,000

Total $2,447,325,000

Wheeling Power Company Interest Maturity CUSIP / PPN* Amount

West Virginia Economic Development Authority, Series 2013A Floating 06/01/2037 N/A $65,000,0001

Senior Note, Series A, Tranche A 3.360% 06/01/2022 96316#AB9 $113,000,000

Senior Note, Series A, Tranche B 3.700% 06/01/2025 96316#AC7 $122,000,000

Senior Note, Series A, Tranche C 4.200% 06/01/2035 96316#AD5 $50,000,000

Total $350,000,000

1 Put date 06/30/2018

DEBT SCHEDULES

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OVERVIEW

Appalachian Power Company (APCo) (organized in Virginia in 1926) is engaged in the generation,

transmission and distribution of electric power to approximately

957,000 retail customers in the southwestern portion of Virginia

and southern West Virginia, and in supplying and marketing

electric power at wholesale to other electric utility companies,

municipalities and other market participants. As of December 31,

2016, APCo had 1,845 employees. APCo is a member of PJM.

Wheeling Power Company (WPCo) (organized in West Virginia in 1883 and reincorporated in 1911)

provides electric service to approximately 41,000 retail

customers in northern West Virginia. As of December 31, 2016,

WPCo had 57 employees. WPCo is a member of PJM.

Kingsport Power Company (KGPCo) (organized in Virginia in 1917) provides electric service to

approximately 48,000 retail customers in Kingsport and eight

neighboring communities in northeastern Tennessee. As of

December 31, 2016, KGPCo had 53 employees. KGPCo is a

member of PJM.

PRINCIPAL

INDUSTRIES SERVED:

Coal Mining

Primary Metals

Chemical Manufacturing

Pipeline Transportation

Paper Manufacturing

President and Chief Operating Officer:

Chris Beam

Total Customers at 12/31/16:

Residential 887,000

Commercial 146,000

Industrial 5,000

Other 8,000

Total 1,046,000

Owned Generating Capacity 7,412 MW

PPA Capacity 799 MW

Generating & PPA Capacity by Fuel Mix:

• Coal: 65.5%

• Hydro & Wind: 15.1%

• Natural Gas: 19.4%

Transmission Miles 6,435

Distribution Miles 54,547

Note: Values consolidate APCo, WPCo and KGPCo.

Since January 2017

27 years with AEP

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APCo FINANCIAL & OPERATIONAL DATA

* Source: 3Q17 Financial Statements (unaudited)

** Source: 2016 10K Financial Statements

*** GWh Sales – Weather Normalized

Credit Ratings/Outlook

Moody's S&P

Baa1/S A-/S

Capital Structure (in thousands)

Capital Structure 2016** 9/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet

4,113,500 3,583,500 7,697,000 4,048,900

3,740,800

7,789,700

% of Capitalization Per Balance Sheet 53.4% 46.6% 100.0% 52.0% 48.0% 100.0%

FFO Interest Coverage 5.51 5.29^

FFO Total Debt 21.7% 21.1%

^ - calculated on rolling 12-month avg.

11,327 11,504 11,851

6,687 6,707 6,799

9,410 9,866 10,314

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

29,433 30,074 31,002

Summary of Degree Days**

2016 2015 2014

(in degree days)

Heating Actual 2,105 2,162 2,645

Normal 2,257 2,248 2,232

Cooling Actual 1,480 1,290 1,056

Normal 1,198 1,196 1,206

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 12,122,600

Net Plant Assets $ 10,068,200

Cash $ 2,900

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WPCo FINANCIAL & OPERATIONAL DATA

Credit Ratings/Outlook

Moody's S&P

NR A-/S

Summary of Degree Days

2016 2015 2014

(in degree days)

Heating Actual 3,292 3,569 4,113

Normal 3,712 3,694 3,687

Cooling Actual 1,117 935 715

Normal 732 725 721

* Source: 2Q17 Financial Statements (unaudited)

** Source: 2016 Annual Financial Statements

*** GWh Sales – Weather Normalized

Capital Structure (in thousands)

Capital Structure 2016** 6/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet

348,572

412,839

761,411

348,690

412,605

761,295

% of Capitalization Per Balance Sheet 45.8% 54.2% 100.0% 45.8% 54.2% 100.0%

FFO Interest Coverage 5.90 5.94^

FFO Total Debt 16.4% 16.5%

^ - calculated on rolling 12-month avg.

407 417 417

441 445 441

2,905 2,748 2,397

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2016 2015 2014

Kilo

wat

t-h

ou

rs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

3,759 3,615 3,260

2017 Asset Data* (in thousands)

As of 6/30/17

Total Assets $ 1,101,228

Net Plant Assets $ 900,559

Cash $ 31

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KGPCo FINANCIAL & OPERATIONAL DATA

* Source: 2Q17 Financial Statements (unaudited)

** Source: 2016 Annual Financial Statements

*** GWh Sales – Weather Normalized

Summary of Degree Days

2016 2015 2014

(in degree days)

Heating Actual 2,070 1,979 2,532

Normal 2,226 2,221 2,219

Cooling Actual 1,455 1,260 1,088

Normal 1,080 1,078 1,069

Capital Structure (in thousands)

Capital Structure 2016** 6/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet 48,438 37,531 85,969 49,442 40,942 90,384

% of Capitalization Per Balance Sheet 56.3% 43.7% 100.0% 54.7% 45.3% 100.0%

675 683 682

394 395 392

918 981 981

-

500

1,000

1,500

2,000

2,500

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

2,022 2,094 2,091

2017 Asset Data* (in thousands)

As of 6/30/17

Total Assets $ 155,713

Net Plant Assets $ 126,974

Cash $ 68

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MAJOR CUSTOMERS:

WVA Manufacturing (WV)

Domtar Paper, LLC (TN)

Air Products & Chemicals Inc.(TN)

Greif Brothers Corporation (VA)

Georgia-Pacific Corporation (VA)

Roanoke Electric Steel Corporation (VA)

Steel of WV, Inc. (WV)

Constellium Rolled Products (WV)

The Goodyear Tire and Rubber Co. (VA)

Felman Production, Inc (WV)

(Data for year ended December 2016)

APPALACHIAN AREA

INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON **

Top 10 Customers = 27% of industrial sales

Metropolitan areas account for 57% of ultimate

sales102 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

** Typical bills are displayed in $/month, based on

1,000 kWh of residential usage. Billing

amounts sourced from the EEI Typical Bills and

Average Rates Report as of January 1, 2017.

CUSTOMER STATISTICS

* Customer counts are a 12-month average as of December 31,

2016 and were sourced from Sales_Ult_Cust_2016.xlsx at

https://www.eia.gov/electricity/data/eia861/

West Virginia Customers

APCo

429,047

Monongahela Power Co

389,759

The Potomac Edison

Company

139,888

WPCo

41,267

Black Diamond Power Co

3,956

Virginia Customers

Virginia Electric & Power Co

2,405,875

APCo

527,611

Kentucky Utilities Co

28,222

Tennessee Customers

KGPCo 47,489

West Virginia $/month

Monongahela Power Co 112.48

The Potomac Edison

Company 112.48

APCo 120.93

WPCo 120.93

Virginia $/month

APCo 114.29

Virginia Electric & Power Co 109.26

Kentucky Utilities Co 102.19

Tennessee $/month

KGPCo 91.58

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COMMISSION OVERVIEW Virginia State Corporation Commission

Commissioners

Number: 3 Appointed/Elected: Elected Term: 6 Years Political Makeup: R: 2 D: 1

Qualifications for Commissioners

The Virginia State Corporation Commission (VSCC) is composed of three members elected by the General Assembly. Commissioners are

elected to serve six-year terms, staggered in two year increments. The chair rotates annually among the three commissioners on February 1.

Commissioners

Mark C. Christie, (Rep.), since 2004; current term expires 2022. Prior counsel to the Speaker of the House of delegates of the Virginia

General Assembly. Lawyer, private practice. Law degree from Georgetown.

Judith Williams Jagdmann, Chairman, (Rep.), since 2006; current term expires 2018. Law degree from T.C. Williams School of Law at the

University of Richmond. Served as Deputy Attorney General for Civil Litigation Division from 1998 to 2005. Attorney General for

Commonwealth of Virginia from 2005 to 2006.

James C. Dimitri, (Dem.), since 2008; current term expires 2020. Prior to being named Commissioner, Dimitri was in private practice in

Richmond. From 1994 to 2000 he served as Senior Counsel, then General Counsel at the SCC. He was an assistant Attorney General from

1983 to 1987. Dimitri received his undergraduate degree in economics from the University of Virginia and his J.D. from the Boston University

School of Law.

AEP Regulatory Status

APCo-VA provides retail electric service in Virginia at unbundled rates. In early 2015, the General Assembly of VA passed the “Rate Freeze

Law”, effective in July 2015. Under the new law, no changes can be made to the existing tariff rates until biennial rate rev iews resume. For

APCo, biennial reviews are suspended until 2020 with the first biennial review applying to the earnings for calendar years 2018 and 2019.

APCo-VA is entitled to adjustments to fuel, transmission and certain other rates to recover its actual costs. Virginia currently has a voluntary

renewable energy standard which phased in starting at 4% in 2010 and increases to 15% by 2025.

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55 52nd EEI Financial Conference | aep.com

COMMISSION OVERVIEW Public Service Commission of West Virginia

Commissioners

Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 2 D: 1

Qualifications for Commissioners

The West Virginia Public Service Commission (WVPSC) consists of three members, appointed by the Governor, with the advice and consent

of the senate. No more than two members of the commission may belong to the same political party. The Commissioners serve six year

staggered terms, with one term expiring as of July 1 of each odd numbered year. One Commissioner is designated as Chairman of the

Commission by the Governor. The Chairman serves as the chief fiscal officer of the Commission.

Commissioners

Michael A. Albert, Chairman (Rep.), since 2007; term expires June 2019. Served as a member in the Business Law Department of Jackson

Kelly. President and Chairman of the board of directors of the Kanawha County Public Library. Bachelor’s degree and Doctorate of

Jurisprudence from West Virginia University.

Renee A. Larrick, Commissioner (Rep.), since 2017; term expires June 2023. Former Business Manager for a private law firm. Served on

the board of directors of the United Way of Southern West Virginia. Bachelor’s degree from University of Kentucky.

Brooks McCabe, Commissioner (Dem.), since 2014; term expires June 2021. Commissioner McCabe is the Managing Member and Broker

of West Virginia Commercial, LLC. Served as a Senator representing Kanawha County from 1998-2014. Doctor of Education degree from

West Virginia University.

AEP Regulatory Status

APCo and Wheeling Power in WV provide retail electric service at bundled rates approved by the WV PSC. West Virginia has an active

annual ENEC (Expanded Net Energy Cost) mechanism, which provides for a rate adjustment for fuel costs, among other items. In June

2016, the Commission authorized new rates through a construction surcharge and the ENEC.

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COMMISSION OVERVIEW Tennessee Public Utility Commission

AEP Regulatory Status

Tennessee has no deregulation legislation and no base rate freeze or cap. Tennessee has an active fuel clause. In August 2016, the TPUC

authorized new base rates in Kingsport Power Company’s first base rate case since 1992. Effective with the authorization, fue l, purchased

power and PJM transmission charges have been removed from base rates and are now recovered through a single tracked surcharge.

Commissioners

Number: 5 Appointed/Elected: Appointed Term: 6 Years

Qualifications for Commissioners

The Tennessee Public Utility Commission (TPUC) directors are appointed, one each, by the Governor, Lieutenant Governor (as Speaker of

the Senate), Speaker of the House and two joint appointments by the three together, and are confirmed by the Tennessee General Assembly.

The directors are appointed for six and three-year staggered terms. The chairmanship rotates every year in an agreed upon decision by the

directors.

Commissioners

Herbert H Hilliard, since 2012; current term expires June 2018. Former Executive Vice President and Chief Government Relations Officer for

Frist Horizon National Corporation. Serves as Chairman of the Board of Directors of The National Civil Rights Museum, Board member of

Blue Cross Blue Shield of Tennessee and Commissioner for the Memphis Shelby County Airport Authority. BBA in Personnel Administration

and Industrial Relations from University of Memphis.

David Jones, Chairman, since 2012; current term expires June 2018. President of Complete Holding Group. Certified facilitator/executive

coach with the Alternative Board. BS in Business from University of Tennessee, Knoxville and an MBA from the University of Houston.

Kenneth C. Hill, Director, since 2009; current term expires June 2022. At the time of his appointment to the commission, Hill was Chief

Executive Officer of Appalachian Educational Communication Corporation and served as General Manager of five radio stations reaching

portions of East Tennessee and four surrounding states. Doctor of Religious Education, Andersonville Baptist Seminary.

Robin Morrison, Vice Chairman, since 2013; current term expires June 2020. Vice President and financial center manager for First

Tennessee Bank. Member Chattanooga Bar Association Auxiliary. Bachelor’s degree in Business Administration-Finance from the University

of Tennessee-Chattanooga.

Keith Jordan, since 2017; current term expires June 2018. Former Tennessee state senator serving two terms. Served on Senate Judiciary,

Government Operations, Transportation, and Energy and Conservation committees. Former Executive Director of the Tennessee Law

Enforcement Planning Agency. Juris doctor from Vanderbilt University School of Law.

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Indiana Michigan Power Company (I&M) (organized in Indiana in 1907) is engaged in the generation,

transmission and distribution of electric power to approximately

592,000 retail customers in northern and eastern Indiana and

southwestern Michigan, and in supplying and marketing electric power

at wholesale to other electric utility companies, rural electric

cooperatives, municipalities and other market participants. As of

December 31, 2016, I&M had 2,475 employees. I&M is a member of

PJM.

President and Chief Operating Officer:

Toby Thomas

PRINCIPAL INDUSTRIES SERVED:

Primary Metals

Chemical Manufacturing

Transportation Equipment

Plastics and Rubber Products

Fabricated Metal Product Manufacturing

Total Customers at 12/31/16:

Residential 515,000

Commercial 70,000

Industrial 5,000

Other 2,000

Total 592,000

Owned Generating Capacity 3,626 MW

PPA Capacity 1,539 MW*

Generating & PPA Capacity by Fuel Mix:

• Coal: 46.4%

• Nuclear: 44.1%

• Hydro, Wind & Solar: 9.5%

Transmission Miles 5,163

Distribution Miles 20,425

OVERVIEW

Since January 2017

16 years with AEP

*Includes 917 MW from AEP Generating Company Rockport Plant PPA

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FINANCIAL & OPERATIONAL DATA

* Source: 3Q17 Financial Statements (unaudited)

** Source: 2016 10K Financial Statements

*** GWh Sales – Weather Normalized

Credit Ratings/Outlook

Moody's S&P

Baa1/P A-/S

Summary of Degree Days**

2016 2015 2014

(in degree days)

Heating Actual 3,429 3,789 4,664

Normal 3,779 3,762 3,737

Cooling Actual 1,039 798 714

Normal 845 846 853

Capital Structure (in thousands)

Capital Structure 2016** 9/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet 2,686,600 2,151,700 4,838,300 2,836,000 2,202,900 5,038,900

% of Capitalization Per Balance Sheet 55.5% 44.5% 100.0% 56.3% 43.7% 100.0%

FFO Interest Coverage 4.87 4.47^

FFO Total Debt 18.5% 16.6%

^ - calculated on rolling 12-month avg.

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 9,767,200

Net Plant Assets $ 5,903,700

Cash $ 1,300

5,527 5,509 5,663

4,942 4,904 4,883

7,780 7,570 7,640

5,100 5,041 5,104

-

5,000

10,000

15,000

20,000

25,000

30,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

23,349 23,024 23,290

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INDIANA & MICHIGAN INVESTOR

OWNED UTILITIES * TYPICAL BILL COMPARISON **

1,779,184

2,156,214

** Typical bills are displayed in

$/month, based on 1,000 kWh of

residential usage. Billing amounts

sourced from the EEI Typical Bills

and Average Rates Report as of

January 1, 2017.

Top 10 Customers = 45% of industrial sales

Metropolitan areas account for 66% of ultimate sales

205 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

MAJOR CUSTOMERS:

Steel Dynamics Inc. (IN)

IN TEK (IN)

Air Products & Chemicals Inc (IN)

Linde LLC (IN)

Michelin North America (IN)

Ardagh Glass Inc ((IN)

Metal Technologies Inc. (MI)

Guardian Industries Corp (IN)

Unifrax Corporation (IN)

Honeywell International Inc (IN)

(Data for year ended December 2016)

CUSTOMER STATISTICS

Indiana Customers

Duke Energy Indiana

812,993

IP & L

486,827

NIPSCO

465,930

I & M

461,154

SIGECo

144,400

Michigan Customers

DTE Electric Company

2,168,567

Consumers Energy

1,805,489

I & M

127,887

* Customer counts are a 12-month average as of December 31,

2016 and were sourced from Sales_Ult_Cust_2016.xlsx at

https://www.eia.gov/electricity/data/eia861/

Indiana $/month Michigan $/month

SIGECo 157.04

DTE Electric

Company 164.38

NIPSCO 142.44 Consumers Energy 144.11

Duke Energy Indiana 118.76 I & M 112.30

I & M 116.90

IP & L 113.27

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COMMISSION OVERVIEW Commissioners

Number: 5 Appointed/Elected: Appointed Term: 4 Years Political Makeup: R: 3 D: 2

Qualifications for Commissioners

Five members, appointed by the Governor from among persons nominated by a legislatively mandated utility commission nominating committee;

four-year, staggered terms, full-time positions. Not more than three of the members of the IURC shall be members of the same political party.

At least one of the commissioners must be an attorney qualified to practice law before the Indiana Supreme Court. The Governor appoints one

of the five as chairperson.

Commissioners

James D. Atterholt, Chair, (Rep.), Since 2017; current term ends February 2020. Served as the Commission’s Chairman previously before

taking a break in service to serve as chief of staff to the Governor. Also served as State Insurance Commissioner and as a State

Representative. Former member of the board of directors for the Organization of MISO States and the Organization of PJM States.

Undergraduate degree from the University of Wisconsin.

Sarah Freeman, Commissioner ( Dem.), since 2016; current term ends January 2018. Former senior staff attorney with the nonpartisan

Indiana Legislative Services Agency for 16 years. Served as a deputy attorney general with the Office of the Indiana Attorney General.

Undergraduate degrees in psychology, French and political science from Indiana University – Bloomington and her juris doctor degree from the

Indiana University Maurer School of Law.

Angela Weber, Commissioner (Rep.), since 2014; current term ends April 2018. Former Marion County deputy prosecuting attorney, former

staff attorney for the Indiana Department of Education. Received juris doctor from the Indiana University Maurer School of Law in 2006.

David E. Ziegner, Commissioner (Dem.), since 1990; current term ends April 2019. Lawyer, staff attorney for Legislative Services Agency,

General Counsel for IURC. Treasurer of NARUC, vice-chair NARUC Committee on Electricity and former chairman of the NARUC clean coal

and carbon sequestration subcommittee. Law degree from the Indiana University School of Law in Indianapolis.

James Huston, Commissioner (Rep.), Since September 2014; current term ends March 2021. Currently serves as Chief to Staff at the Indiana

State Department of Health. Prior to that also served as assistant deputy treasurer and Deputy Commissioner for the Bureau of Motor Vehicles.

Huston received his undergraduate degree from Ball State University.

AEP Regulatory Status

I&M provides retail electric service at bundled rates approved by the IURC. Rates are set on a cost-of-service basis with a fuel recovery

mechanism. I&M has trackers in place for PJM expenses, OSS sharing, clean coal technology, environmental, nuclear life cycle management,

solar pilot project costs, DSM, home energy management and work energy management. Indiana currently has a voluntary renewable standard

which phases in starting at 4% and ending at 10% from 2013-2025. The State recently implemented a 300 day rate case procedural schedule

along with a forward looking test year. A new law signed in May 2017 gradually lowers the retail rate compensation for residents who install solar

or wind power. I&M filed a base rate case on July 26, 2017.

Indiana Utility Regulatory Commission

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Michigan Public Service Commission

COMMISSION OVERVIEW

Commissioners

Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: I: 2 R: 1

Qualifications for Commissioners

The Michigan Public Service Commission (MPSC) is composed of three members appointed by the Governor with the advice and consent of the Senate.

Commissioners are appointed to serve staggered six-year terms. No more than two commissioners may represent the same political party. One

commissioner is designated as chairman by the Governor.

Commissioners

Rachel Eubanks, Commissioner, (Rep.), since 2016; current term expires July 2023. Worked in public finance for 13 years, most recently as a director at

Robert W. Baird & Co. Inc. Holds a bachelor’s degree in economics from the University of Michigan.

Sally Talberg, Chairman (Ind.), since 2013; current term expires July 2021. Former senior consultant at Public Sector Consultants. Previously served as

an analyst at the MPSC, managed enforcement and contested cases at the Michigan Department of Environmental Quality and advised commissioners at

the Public Utility Commission of Texas. Holds a bachelor of science from Michigan State University and a masters of Public Administration from the

University of Texas – Austin..

Norman J. Saari, Commissioner, (Ind.) , since 2015; current term expires July 2019. Served as an executive director of governmental affairs for 20 years

at the Consumers Energy Company. Commissioner Saari is a member of the National Association of Regulatory Utility Commissioners and sits on the

Board of Directors of the Organization of PJM States, Inc. Earned a bachelor’s degree from Michigan State University.

AEP Regulatory Status

Customer choice began in January 2002. Generation was not deregulated. Retail rates were unbundled (though they continue to be regulated) to allow

customers to evaluate generation costs. Public Acts 341 and 342 were approved in late 2016 which provided significant energy law updates for electric

utilities:

• The deadline for rate cases to be completed has been shortened from 12 months to 10 months and removed ability for “self-implementation” of rates.

• Required to submit integrated resource plans for MPSC review and approval.

• Utilities required to demonstrate they have enough resources to service anticipated loads.

• Offer a voluntary green pricing program where customers can specify the amount of renewable energy provided.

• 15% of generation must be from renewables by 2021.

In 2017, the MPSC adjusted the electric choice cap for utilities serving less than 200,00 customers and who have not had any load served by an

alternative energy supplier (AES) in the preceding four years. I&M’s cap is currently set at zero. I&M has an active fuel clause that recovers fuel,

purchased energy and capacity, PJM expenses, consumables expenses and off-system sales. Return on CWIP can be included in base rates. Michigan

also has a DSM rider and has approved deferral of nuclear life cycle management costs from 2013-2018. I&M filed a base rate case on May 15, 2017.

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OVERVIEW

Kentucky Power Company (KPCo) (organized in Kentucky in 1919) is engaged in the generation,

transmission and distribution of electric power to

approximately 169,000 retail customers in eastern Kentucky,

and in supplying and marketing electric power at wholesale to

other electric utility companies, municipalities and other

market participants. As of December 31, 2016, KPCo had

550 employees. KPCo is a member of PJM.

President and Chief Operating Officer:

Matthew Satterwhite

Total Customers at 12/31/16:

Residential 137,000

Commercial 30,500

Industrial 1,000

Other 500

Total 169,000

Owned Generating Capacity 1,060 MW

PPA Capacity 393 MW*

Generating & PPA Capacity by Fuel Mix:

• Coal: 80.7%

• Natural Gas: 19.3%

Transmission Miles 1,268

Distribution Miles 10,042

PRINCIPAL INDUSTRIES SERVED:

Petroleum and Coal Products Manufacturing

Coal Mining

Primary Metals

Chemical Manufacturing

Oil and Gas Extraction

Since December 2016

9 years with AEP

*Represents 393 MW from AEP Generating

Company Rockport Plant PPA

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FINANCIAL & OPERATIONAL DATA

Credit Ratings/Outlook

Moody's S&P

Baa2/S A-/S

* Source: 3Q17 Financial Statements (unaudited)

** Source: 2016 Annual Financial Statements

*** GWh Sales – Weather Normalized

Summary of Degree Days

2016 2015 2014

(in degree days)

Heating Actual 2,233 2,482 2,928

Normal 2,462 2,446 2,438

Cooling Actual 1,543 1,096 933

Normal 1,172 1,180 1,184

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 2,430,874

Net Plant Assets $ 1,768,103

Cash $ 770

Capital Structure (in thousands)

Capital Structure 2016** 9/30/2017*

Debt Equity Total Debt Equity Total Capitalization Per Balance Sheet 868,971 668,401 1,537,372 879,316 662,164 1,541,480

% of Capitalization Per Balance Sheet 56.5% 43.5% 100.0% 57.0% 43.0% 100.0%

FFO Interest Coverage 3.32 3.48^

FFO Total Debt 12.3% 13.3%

^ - calculated on rolling 12-month avg.

2,115 2,198 2,287

1,303 1,327 1,355

2,408 2,693 2,810

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

5,921 6,319 6,557

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KENTUCKY INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON **

MAJOR CUSTOMERS:

Catlettsburg Refining LLC

Markwest Energy Appalachia LLC

Air Products & Chemicals, Inc.

AK Steel Holding Corporation

Air Liquide

Calgon Carbon Corp

Czar Coal Corporation

Huntington Alloys

Tennessee Gas Pipeline Co

M C Mining, Inc.

(Data for year ended December 2016)

Top 10 customers = 76% of industrial sales

Metropolitan areas account for 44% of ultimate sales

68 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

** Typical bills are displayed in $/month, based on 1,000 kWh of

residential usage. Billing amounts sourced from the EEI

Typical Bills and Average Rates Report as of January 1, 2017.

CUSTOMER STATISTICS

Kentucky Customers

Kentucky Utilities 518,843

LG & E 404,744

KPCo 168,848

Duke Energy Kentucky 140,014

* Customer counts are a 12-month average as of December 31,

2016 and were sourced from Sales_Ult_Cust_2016.xlsx at

https://www.eia.gov/electricity/data/eia861/

Kentucky $/month

KPCo 132.71

LG & E 105.28

Kentucky Utilities 99.18

Duke Energy Kentucky 85.44

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COMMISSION OVERVIEW Kentucky Public Service Commission

AEP Regulatory Status

KPCo provides retail electric service at regulated bundled rates in Kentucky. Kentucky has an environmental surcharge to recover approved

environmental costs and it has an active fuel clause. Kentucky also has an OSS sharing mechanism and a monthly adjustment clause in

place for DSM. KPCo last implemented base rates in 2015. Kentucky does not have a renewable portfolio standard. Kentucky filed a base

rate case on July 26, 2017.

Commissioners

Number: 3 Appointed/Elected: Appointed Term: 4 Years Political Makeup: R: 3 D: 0

Qualifications for Commissioners

Typically three members, appointed by the governor and confirmed by the state Senate for four-year, staggered terms, full-time positions.

The governor appoints one of the three as chairman and another of the three as vice chairman to serve in the chairman’s absence. Not more

than two members of the KPSC shall be of the same profession or occupation.

Commissioners

Michael J. Schmitt, Chairman (Rep.), Appointed June 2016; current term expires June 30, 2019. Prior to joining the PSC Chairman

Schmitt was a partner at the law firm Porter, Schmitt, Banks and Baldwin where he specialized in energy and education law. J.D. from the

University of Kentucky College of Law.

Robert Cicero, Vice Chairman (Rep.), since April 2016; current term expires June 30, 2020. Before joining the PSC, Mr. Cicero, was a small

business owner and business executive. Vice Chairman Cicero served for 10 years as CFO and Treasurer for Aristech Acrylics LLC. He

also has 20 years experience in various managerial and financial positions with US Steel and its affiliates. He has a MBA from the Joseph M.

Katz Graduate School of Management and a BS in Accounting from the University of Pittsburgh.

Talina R. Mathews, Commissioner (Rep.), since July 2017; current term expires June 30, 2021. Prior to appointment as commissioner,

Mathews served as executive director of the Public Service Commission. She has also served as executive director of the Governor’s Office

of Energy Policy. She is on the board of directors of the Organization of MISO States and the Organization of PJM States. She has a Doctor

of Philosophy and a Master of Arts in economics from the University of Kentucky.

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AEP Ohio - Ohio Power Company (OPCo) (organized in Ohio in 1907 and re-incorporated in 1924) is

engaged in the transmission and distribution of electric power to

approximately 1,472,000 retail customers in Ohio. Following

corporate separation of OPCo's generation assets in December

2013, OPCo purchases energy and capacity to serve generation

service customers. As of December 31, 2016, OPCo had 1,582

employees. OPCo is a member of PJM.

PRINCIPAL INDUSTRIES SERVED:

Primary Metals

Petroleum and Coal Products Manufacturing

Chemical Manufacturing

Rubber & Plastic Products

Fabricated Metal Products

President and Chief Operating Officer:

Julie Sloat

Total Customers at 12/31/16:

Residential 1,282,000

Commercial 177,000

Industrial 10,000

Other 3,000

Total 1,472,000

PPA Capacity 646

PPA Capacity by Fuel Mix:

• Coal: 67.6%

• Wind & Solar: 32.4%

Transmission Miles 7,866

Distribution Miles 45,727

Since May 2016

17 years with AEP

OVERVIEW

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FINANCIAL & OPERATIONAL DATA

Credit Ratings/Outlook

Moody's S&P

A2/S A-/S

* Source: 3Q17 Financial Statements (unaudited)

** Source: 2016 10K Financial Statements

*** GWh Sales – Weather Normalized

Summary of Degree Days**

2016 2015 2014

(in degree days)

Heating Actual 2,957 3,235 3,734

Normal 3,245 3,226 3,230

Cooling Actual 1,248 975 949

Normal 969 970 960

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 7,055,000

Net Plant Assets $ 5,580,300

Cash $ 3,100

Capital Structure (in thousands)

Capital Structure 2016** 9/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet 1,763,900 2,117,500 3,881,400 1,886,600 2,217,800 4,104,400

% of Capitalization Per Balance Sheet 45.4% 54.6% 100.0% 46.0% 54.0% 100.0%

FFO Interest Coverage 6.54 6.12^

FFO Total Debt 37.8% 28.9%

^ - calculated on rolling 12-month avg.

14,055 14,159 14,328

14,514 14,468 14,326

14,285 14,653 14,541

-

10,000

20,000

30,000

40,000

50,000

60,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

42,985 43,408 43,326

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OHIO INVESTOR OWNED UTILITIES* TYPICAL BILL COMPARISON**

MAJOR CUSTOMERS:

Lima Refining Co.

Timken Steel Corporation

Globe Metallurgical, Inc.

Republic Steel

Markwest Utica EMG, LLC

Marathon Petroleum Company LP

Eramet Marietta, Inc.

Owens Corning Sales, LLC

Cardinal Gas Services, LLC

Airgas Merchant Gases, LLC

(Data for year ended December 2016)

Top 10 AEP Ohio customers = 32% of industrial sales

Metropolitan areas account for 66% of ultimate sales

169 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

** Typical bills are displayed in $/month, based on 1,000

kWh of residential usage. Billing amounts sourced from

the EEI Typical Bills and Average Rates Report as of

January 1, 2017. Ohio rates represent standard service

offer bundled residential rates.

CUSTOMER STATISTICS

Ohio Customers

AEP Ohio 1,467,725

FE (Ohio Edison) 1,041,123

FE (CEI) 747,747

Duke Energy Ohio Inc 706,793

DP&L 517,570

FE (Toledo Edison) 309,060

* Customer counts are a 12-month average as of December 31,

2016 and were sourced from Sales_Ult_Cust_2016.xlsx at

https://www.eia.gov/electricity/data/eia861/

Ohio $/month

AEP Ohio (OPCo) 135.25

AEP Ohio (CSPCo) 126.77

Duke Energy Ohio Inc 119.63

FE (Toledo Edison) 118.79

FE (Ohio Edison) 115.92

FE (CEI) 115.23

DP&L 112.41

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Ohio Public Utilities Commission

COMMISSION OVERVIEW

AEP Regulatory Status

OPCo currently has an approved electric security plan through May 2018. There is a stipulation pending in the Electric Security Plan

Extension case which if approved will set rates through May 2024. Transmission rates are currently regulated by FERC as reflected in the

OATT and billed to retail customers via the basic transmission cost rider.

Commissioners

Number: 5 Appointed/Elected: Appointed Term: 5 Years Political Makeup: R: 2 D: 1 I: 2

Qualifications for Commissioners

Five members, appointed by the governor and confirmed by the state senate; five-year staggered terms, full-time positions, commissioners

shall be selected from the lists of qualified persons submitted to the governor by the PUC nominating council. Not more than three of the

members of the PUCO shall be members of the same political party. The governor appoints one of the five as chairman, who serves at the

pleasure of the governor until a successor has been designated.

Commissioners

Asim Haque, Chairman, (Ind.) since 2013; term expires April 2021. Prior to joining the commission was assistant counsel at Honda North

America. Prior to that was an attorney with Ice Miller LLP. Bachelor’s degrees in chemistry and political science from Case Western Reserve

University and Juris Doctorate from Ohio State University.

M. Beth Trombold, Commissioner, (Ind.) since 2013; term expires April 2018. Prior to joining the commission, was the assistant director of

the Ohio Development Services Agency. Prior to that was on PUC staff for 16 years. Bachelor’s degree in business administration from Ohio

University and master’s in public policy from Ohio State University.

Thomas W. Johnson, Commissioner, (Rep.) , since 2014; term expires April 2019. Prior to joining the commission, was on the Ohio House

of Representatives for 22 years serving Southeastern Ohio. After that served as Governor Bob Taft’s director of the Office of Budget and

Management from 1999 to 2006. Bachelor’s degree in government from Muskingum University.

Lawrence Friedeman, Commissioner, (Dem.), since 2017; term expires April 2020. Prior to joining the commission, was employed as vice

president of regulatory affairs and compliance at IGS Energy. Received undergraduate and graduate degrees from the University of

Pittsburgh and the University of Pittsburgh School of Law.

Daniel Conway, Commissioner, (Rep.) since 2017; term expires April 2022. Practiced energy and telecommunications law for more than 35

years representing utilities and telecommunications companies before the PUCO. Serves as an adjunct professor at The Ohio State

University. Bachelor’s degree in physics from Miami University and law degree from the University of Michigan.

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OVERVIEW

Public Service Company of Oklahoma (PSO) (organized in Oklahoma in 1913) is engaged in the generation,

transmission and distribution of electric power to approximately

548,000 retail customers in eastern and southwestern Oklahoma,

and in supplying and marketing electric power at wholesale to other

electric utility companies, municipalities, rural electric cooperatives

and other market participants. At December 31, 2016, PSO had

1,110 employees. PSO is a member of SPP.

President and Chief Operating Officer:

Stuart Solomon

PRINCIPAL INDUSTRIES SERVED:

Paper Manufacturing

Oil & Gas Extraction

Transportation Equipment

Plastics and Rubber Products

Oil Refining and Steel Processing

Total Customers at 12/31/16:

Residential 471,000

Commercial 63,000

Industrial 6,000

Other 8,000

Total 548,000

Owned Generating Capacity 3,940 MW

Gas PPA Capacity 1,023 MW

Wind PPA Capacity 1,137 MW

Generating & PPA Capacity by Fuel Mix:

• Coal 9.4%

• Natural Gas 72.0%

• Wind 18.6%

Transmission Miles 3,271

Distribution Miles 19,886

Since June 2004

28 years with AEP

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FINANCIAL & OPERATIONAL DATA

*Source: 3Q17 Financial Statements (unaudited)

**Source: 2016 10-K Financial Statements

***GWh Sales – Weather Normalized

Capital Structure (in thousands)

Capital Structure 2016** 9/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet 1,338,000 1,214,100 2,552,100 1,404,400 1,232,400 2,636,800

% of Capitalization Per Balance Sheet 52.4% 47.6% 100.0% 53.3% 46.7% 100.0%

FFO Interest Coverage 3.81

5.22^

FFO Total Debt 11.4% 14.6%^

^ - calculated on rolling 12-month avg.

Summary of Degree Days**

2016 2015 2014

(in degree days)

Heating Actual 1,341 1,588 2,113

Normal 1,778 1,774 1,777

Cooling Actual 2,444 2,182 2,054

Normal 2,132 2,127 2,130

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 4,478,500

Net Plant Assets $ 3,857,900

Cash $ 2,100

Credit Ratings/Outlook

Moody's S&P

A3/S A-/S

6,155 6,143 6,253

5,229 5,146 5,133

5,534 5,410 5,237

1,249 1,242 1,260

18,167 17,941 17,883

-

5,000

10,000

15,000

20,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

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MAJOR CUSTOMERS:

International Paper Company

Kimberly Clark Corp

Goodyear Tire & Rubber Company

HollyFrontier Corporation

American Airlines

Enable Product, LLC.

Terra Nitrogen

Republic Paperboard

(Data for year ended December 2016)

OKLAHOMA INVESTOR OWNED UTILITIES * TYPICAL BILL COMPARISON **

Oklahoma Customers

PSO 547,142

OG&E 763,758

Empire District 4,686

Top 10 customers = 44% of industrial sales

Metropolitan areas account for 75% of ultimate

sales 49 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

** Typical bills are displayed in $/month, based on

1,000 kWh of residential usage. Billing amounts

sourced from the EEI Typical Bills and Average

Rates Report as of January 1, 2017.

Oklahoma $/month

Empire District 97.06

OG&E 91.62

PSO 89.84

* Customer counts are a 12-month average as of December 31,

2016 and were sourced from Sales_Ult_Cust_2016.xlsx at

https://www.eia.gov/electricity/data/eia861/

CUSTOMER STATISTICS

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COMMISSION OVERVIEW Oklahoma Corporation Commission

AEP Regulated Electric Utilities

Public Service Company of Oklahoma

Commissioners

Number: 3 Appointed/Elected: Elected Term: 6 Years Political Makeup: R: 3 D: 0

Qualifications for Commissioners

The Oklahoma Corporation Commission (OCC) is composed of three commissioners who are elected by state-wide vote. Commissioners

serve staggered six-year terms. The election pattern was established when the Commission was created by the state constitution.

Commissioners

Bob Anthony, Commissioner, (Rep.), since 1989; current term expires January 2019. Member, NARUC. Served on the boards of the

Oklahoma State, Oklahoma City and South Oklahoma City chambers of commerce. Earned an M.Sc. from the London School of Economics,

an M.A. from Yale University and an M.P.A. from the Kennedy School of Government at Harvard University.

Todd Hiett, Vice Chairman (Rep.), since 2015; current term ends January 2021. Elected to the Oklahoma House of Representatives in

1994, selected as House Minority Leader in 2002 and Speaker of House from 2004-2006. After 12 years in the Legislature, he returned to the

business world and ran his cattle ranch until his election as a Commissioner. He received his undergraduate degree in Animal

Science/Business from Oklahoma State University.

Dana Murphy, Chairman (Rep.), since 2008; current term expires January 2023. Member, NARUC. Murphy’s prior experience includes

working as an administrative law judge at the Commission. She has more than 20 years experience in the petroleum industry including

owning and operating her own private law practice and working as a geologist in the Oklahoma petroleum industry. Juris Doctorate Oklahoma

City University.

AEP Regulatory Status

PSO provides retail electric service in Oklahoma at bundled rates approved by the OCC. PSO’s rates are set on a cost-of-service basis.

Fuel and purchased power costs are recovered by applying a fuel adjustment factor to retail kilowatt-hour sales. The factor is generally

adjusted annually and is based upon forecasted fuel and purchased energy costs. Over- or under-collections of fuel costs for prior periods

are returned to or recovered from customers when new annual factors are established. PSO has an OSS margin sharing mechanism.

Oklahoma currently has a voluntary renewable energy standard of 15% by 2015. PSO filed a base rate case on June 30, 2017.

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OVERVIEW

Southwestern Electric Power Company (SWEPCo) (organized in Delaware in 1912) is engaged in the generation, transmission

and distribution of electric power to approximately 533,000 retail customers

in northeastern and panhandle of Texas, northwestern Louisiana and

western Arkansas, and in supplying and marketing electric power at

wholesale to other electric utility companies, municipalities, rural electric

cooperatives and other market participants. At December 31, 2016,

SWEPCo had 1,486 employees. The territory served by SWEPCo also

includes several military installations, colleges and universities. SWEPCo

also owns and operates a lignite coal mining operation. SWEPCo is a

member of SPP.

PRINCIPAL INDUSTRIES SERVED:

Oil and Gas Extraction

Petroleum & Coal Products Manufacturing

Primary Metals

Food Manufacturing

Paper Manufacturing

President and Chief Operating Officer:

Venita McCellon-Allen

Total Customers at 12/31/16:

Residential 452,000

Commercial 73,500

Industrial 7,000

Other 500

Total 533,000

Owned Generating Capacity 5,225 MW

PPA Capacity 595 MW

Generating & PPA Capacity by Fuel Mix:

• Coal: 45.1%

• Natural Gas: 46.8%

• Wind: 8.1%

Transmission Miles 4,101

Distribution Miles 25,096

Since July 2010

34 years with AEP

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FINANCIAL & OPERATIONAL DATA

*Source: 3Q17 Financial Statements (unaudited)

**Source: 2016 10-K Financial Statements

***GWh Sales – Weather Normalized

Capital Structure (in thousands)

Capital Structure

2016** 9/30/2017*

Debt Equity Total Debt Equity Total

Capitalization Per Balance Sheet 2,679,100 2,215,200 4,894,300 2,504,100 2,257,100 4,761,200

% of Capitalization Per Balance Sheet 54.7% 45.3% 100.0% 52.6% 47.4% 100.0%

FFO Interest Coverage 4.58 4.12^

FFO Total Debt 16.5% 14.9%

^ - calculated on rolling 12-month avg.

Summary of Degree Days**

2016 2015 2014

(in degree days)

Heating Actual 917 1,168 1,553

Normal 1,208 1,204 1,230

Cooling Actual 2,516 2,450 2,043

Normal 2,298 2,293 2,279

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 7,555,900

Net Plant Assets $ 6,549,800

Cash $ 2,200

Credit Ratings/Outlook

Moody's S&P

Baa2/S

A-/S

6,152 6,234 6,308

6,031 6,032 6,032

5,074 5,370 5,901

6,190 6,252 6,241

23,447 23,888 24,482

-

5,000

10,000

15,000

20,000

25,000

30,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales*** (in millions of KWhs)

Residential Commercial Industrial Other

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MAJOR CUSTOMERS:

XTO Energy (TX)

Domtar Corporation (AR)

Calumet Lubricants (LA)

International Paper Company (TX)

Cooper Tire & Rubber Company (AR)

Pratt Paper, LLC (LA)

Air Liquide Large Industries (TX)

Pilgrim Pride (TX)

Glad Manufacturing Company (AR)

US Steel Tubular Products, Inc. (TX)

(Data for year ended December 2016)

SOUTHWESTERN INVESTOR

OWNED UTILITIES *

TYPICAL BILL COMPARISON **

Arkansas Customers

SWEPCo 118,043

Entergy AR 706,871

OG&E 66,299

Empire

District 4,464

Louisiana Customers

SWEPCo 230,040

CLECO 284,625

Entergy LA 1,268,665

Texas Customers

SWEPCo 184,569

El Paso 312,066

SPSCo 269,313

Entergy TX 439,570

Top 10 customers = 38% of industrial sales

Metropolitan areas account for 72% of ultimate sales

70 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

Arkansas $/month Louisiana $/month Texas $/month

OG&E 77.12 Entergy Gulf St 85.29 SWEPCo 86.29

SWEPCo 83.56 SWEPCo 85.93 SPSCo 106.68

Entergy AR 99.65 Entergy LA 91.30 Entergy TX 117.31

Empire District 110.71

Entergy New

Orleans 115.24 El Paso 123.73

CLECO 117.25

* Customer counts are a 12-month average as of December 31,

2016 and were sourced from Sales_Ult_Cust_2016.xlsx at

https://www.eia.gov/electricity/data/eia861/

CUSTOMER STATISTICS

** Typical bills are displayed in $/month, based on 1,000 kWh of residential usage. Billing amounts sourced

from the EEI Typical Bills and Average Rates Report as of January 1, 2016.

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COMMISSION OVERVIEW Arkansas Public Service Commission

Commissioners

Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 1 D: 2

Qualifications for Commissioners

The Arkansas Public Service Commission (APSC) is composed of 3 members. The Governor appoints the Commissioners as well as the

Chairman. Governor Asa Hutchinson appointed Chairman Thomas and Commissioner O’Guinn while former Governor Mike Beebe appoin ted

Commissioner Wills.

Commissioners

Ted Thomas, Chairman (Rep.), since 2015; current term expires in Jan 2021. Commissioner Thomas previously served as Chief Deputy

Prosecuting Attorney, Administrative Law Judge at the Public Service Commission, Budget Director for the Governor and in the Arkansas

House of Representatives. Chairman Thomas received his Juris Doctorate from the University of Arkansas School of Law.

Kimberly A. O’Guinn. Commissioner (Dem.), since 2016; current term expires in Jan 2023. Served as Director of Communications for the

Arkansas Department of Environmental Quality. Received her Bachelor of Science in Environmental Engineering from the University of

Oklahoma.

Elana C. Wills, Commissioner (Dem.), since 2011; current term expires Jan 2019. Served as an Associate Justice on the Arkansas

Supreme Court by gubernatorial appointment from October 2008 – December 2010. Received her Juris Doctorate from the University of

Arkansas School of Law in Fayetteville.

AEP Regulatory Status

SWEPCo-AR provides service at regulated bundled rates in Arkansas. Arkansas has an active fuel pass-through clause. Arkansas has an

OSS margin sharing mechanism. Arkansas allows a forward looking test year that can be based on six months actual and 6 months budget

data. Arkansas also allows adjustments to the test year for all known and measurable changes which occur within twelve months after the

end of the test year.

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Louisiana Public Service Commission

Commissioners

Number: 5 Appointed/Elected: Elected Term: 6 Years Political Makeup: R: 3 D: 2

Qualifications for Commissioners

The Louisiana Public Service Commission (LPSC) is composed of five elected members. The commissioners serve overlapping terms of six

years.

Commissioners

Mike Francis, Commissioner, (Rep.), since 2016; current term ends December 2022. Past founder and chief executive officer of Francis

Drilling Fluids, Ltd; one of the oldest drilling fluids companies on the Gulf Coast. Chairman of the Republican Party in Louisiana from 1994-

2000.

Foster L. Campbell, Commissioner, (Dem.), since 2003; current term ends December 2020. Member, Louisiana State Senate (1976-

2002). Independent insurance businessman and farmer, former school teacher and agricultural products salesman. Bachelor’s degree from

Northwestern State University.

Lambert C. Bossiere, III, Commissioner, (Dem.), since 2005; current term ends December 2022. B.S. Business Administration from

Southern University. Former First City Court Constable for the City of New Orleans. Member of NARUC.

Eric Skrmetta, Chairman, (Rep.), since 2009; current term ends December 2020. Practicing Attorney since 1985. Practicing Mediator since

1989. Republican State Central Committee District 81. Juris Doctorate from Southern University Law School.

Craig Green, Commissioner-Elect, (Rep.), won the primary election for the seat in October 2017 and will replace Interim Commissioner ,

Damon Baldone (recently appointed by the Governor to temporarily fill the vacant seat). Orthopedic surgeon in Baton Rouge.

Undergraduate and medical degrees from Louisiana State University and holds an MBA from Yale University.

AEP Regulatory Status

SWEPCo-LA provides service at regulated bundled rates in Louisiana. Louisiana has an active fuel pass-through clause and an OSS margin

sharing mechanism. All IOUs are regulated pursuant to formula rate plans (FRP). Louisiana has allowed CWIP return on new generation

projects, in limited circumstances. The FRP was implemented for SWEPCo on August 1, 2008 with annual true-ups required. The LPSC

recently extended the FRP to cover the 2015 and 2017 test years. SWEPCo currently has its 2015 FRP filing (for test year 2014) pending

before the LPSC.

COMMISSION OVERVIEW

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Public Utility Commission of Texas

Commissioners

Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 3 D: 0

Qualifications for Commissioners

To be eligible for appointment, a commissioner must be: a qualified voter and a citizen of the U.S.; a competent and experienced

administrator; well informed and qualified in the field of public utilities and public utility regulation; and, have at least five years of experience

in the administration of business or government or as a practicing attorney or certified public accountant. Chairman appointed by the

Governor.

Commissioners

DeAnn Walker, Chairman, (Rep.), since 2017, current term expires September 2021. Previously served as senior policy advisor to current

Governor Abbott related to policy matters on regulated industries. Also served as director of regulatory affairs and as an associate general

counsel for CenterPoint Energy. Received a law degree from the South Texas College of Law.

Kenneth W. Anderson Jr., Commissioner, (Rep.), since 2008; current term expired August 2017. Past Director of Governmental

Appointments under former Governor Perry. Prior to that Anderson served in private practice as a corporate attorney in the area of securities

law and regulatory matters. He also served as a member of the Texas Securities Board from 1999-2006. Anderson holds a law degree from

Southern Methodist University.

Brandy Marty Marquez , Commissioner, (Rep.), since 2013; current term expires September 2019. Formerly Governor Perry’s chief of

staff. Has also held positions as: governor’s Deputy Chief of Staff, Director of the Budget, Planning and Policy Division and deputy legislative

director/liaison to the Texas House of Representatives. Bachelor’s degree in government from University of Texas and Juris Doctorate from St

Mary’s University.

AEP Regulatory Status

Retail competition in the SPP area of Texas, including SWEPCo’s, has been delayed by legislation. SWEPCo-TX has an active fuel pass-

through clause as well as OSS margin sharing. In limited circumstances, CWIP is allowed in rate base. Texas has a mandatory, statewide

renewable installed capacity requirement of 5,880 MW by 2015 and a target of 10,000 MW by 2025, which it has surpassed. SWEPCo-TX

implemented a new Distribution Cost Recovery Factor (DCRF) in Texas on July 1, 2016 and filed a base rate case on December 16, 2016.

COMMISSION OVERVIEW

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Total Customers at 12/31/16:

Residential 860,000

Commercial 148,000

Industrial 9,000

Other 7,000

Total 1,024,000

Owned Generating Capacity 355 MW

Generating Capacity by Fuel Mix:

• Coal 100.0%

Transmission Miles 8,400

Distribution Miles 43,182

OVERVIEW

AEP Texas (organized in Delaware in 1925) was formed by the merger

of AEP Texas Central Company and AEP Texas North Company on

December 31, 2016 and is engaged in the transmission and distribution of

electric power to approximately 1,024,000 retail customers in west and south

Texas. The total output from AEP Texas North’s remaining active generating

unit (Oklaunion Plant) is sold to an affiliate at AEP Texas North’s cost

pursuant to an agreement effective through 2027. The territory served by

AEP Texas also includes several military installations. At December 31, 2016,

AEP Texas had 1,500 employees. AEP Texas is a member of ERCOT.

PRINCIPAL INDUSTRIES SERVED:

Petroleum & Coal Products Manufacturing

Chemical Manufacturing

Oil and Gas Extraction

Food Manufacturing

Pipeline Transportation

MAJOR CUSTOMERS:

Formosa Utility Venture

Valero Energy Corporation

Markwest Energy Partners

Flint Hills Resources

Equistar Bay City

(Data for year ended December 2016)

President and Chief Operating Officer:

Judith Talavera

Since June 2016

17 years with AEP

Top 10 customers = 54% of industrial sales

Metropolitan areas account for 74% ultimate

sales 31 persons per square mile (U.S. = 87)

(Data for 12 months ended December 2016)

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FINANCIAL & OPERATIONAL DATA

*Source: 3Q17 Financial Statements (unaudited)

**Source: 2016 Annual Report

***KWh Sales – Weather Normalized

Summary of Degree Days

2016 2015 2014

(in degree days)

Heating Actual 202 390 428

Normal 328 325 337

Cooling Actual 3,058 2,718 2,553

Normal 2,648 2,642 2,618

Capital Structure (in thousands)

Capital Structure 2016** 9/30/2017*

Debt^ Equity Total Debt^ Equity Total

Capitalization Per Balance Sheet 3,387,200 1,657,100 5,044,300 3,722,500 2,004,600 5,727,100

% of Capitalization Per Balance Sheet 67.1% 32.9% 100.0% 65.0% 35.0% 100.0%

FFO Interest Coverage 4.74 4.86

FFO Total Debt 17.1% 14.7%

^^ - calculated on rolling 12-month avg.

^includes securitization debt of $1,245M and $1,059M at December 31, 2016 and Sept. 30, 2017 respectively

Credit Ratings/Outlook

Moody's S&P

Baa1/S A-/S

11,682 11,273 11,395

11,068 10,736 10,915

7,900 7,699 7,290

31,225 30,285 30,184

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2016 2015 2014

Kilo

watt

-ho

urs

Summary of KWh Energy Sales** (in millions of KWhs)

Residential Commercial Industrial Other

2017 Asset Data* (in thousands)

As of 9/30/17

Total Assets $ 8,679,900

Net Plant Assets $ 6,339,700

Cash $ 100

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COMMISSION OVERVIEW Public Utility Commission of Texas

AEP Regulatory Status

AEP Texas provides retail transmission and distribution service on a cost-of-service basis at rates approved by the PUCT and wholesale

transmission service under tariffs approved by the FERC consistent with PUCT rules. Distribution rate riders are in place to recover AMI,

wholesale transmission expenses and energy efficiency costs. Interim Transmission Cost of Service (TCOS) filings can be filed twice a year

to recover transmission investment and Distribution Cost Recovery Factor (DCRF) filings can be filed once a year to recover distribution

investment.

Commissioners

Number: 3 Appointed/Elected: Appointed Term: 6 Years Political Makeup: R: 3 D: 0

Qualifications for Commissioners

To be eligible for appointment, a commissioner must be: a qualified voter and a citizen of the U.S.; a competent and experienced

administrator; well informed and qualified in the field of public utilities and public utility regulation; and, have at least five years of experience

in the administration of business or government or as a practicing attorney or certified public accountant. Chairman appointed by the

Governor.

Commissioners

DeAnn Walker, Chairman, (Rep.), since 2017, current term expires September 2021. Previously served as senior policy advisor to current

Governor Abbott related to policy matters on regulated industries. Also served as director of regulatory affairs and as an associate general

counsel for CenterPoint Energy. Received a law degree from the South Texas College of Law.

Kenneth W. Anderson Jr., Commissioner, (Rep.), since September 2008. Past Director of Governmental Appointments under former

Governor Perry. Prior to that Anderson served in private practice as a corporate attorney in the area of securities law and regulatory matters.

He also served as a member of the Texas Securities Board from 1999-2006. Anderson holds a law degree from Southern Methodist

University.

Brandy Marty Marquez , Commissioner, (Rep.), since 2013; current term expires September 2019. Formerly Governor Perry’s chief of

staff. Has also held positions as: governor’s Deputy Chief of Staff, Director of the Budget, Planning and Policy Division and deputy legislative

director/liaison to the Texas House of Representatives. Bachelor’s degree in government from University of Texas and Juris Doctorate from St

Mary’s University.

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REGULATED GENERATION

• Regulated Generation Summary

• Owned Regulated Generation

• Regulated Fuel Procurement – 2018 Projected

• Regulated Coal Delivery – 2018 Projected

• Jurisdictional Fuel Clause Summary

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REGULATED GENERATION SUMMARY

Net Maximum Capacity

(in MW)

Company Owned

Capacity

Renewable

PPA

Gas

PPA

OVEC

PPA***

Total

Capacity

AEP Generating Company* 1,310 1,310

Appalachian Power Company 6,632 455 344 7,431

Wheeling Power Company 780 780

Kentucky Power Company 1,060 1,060

Indiana Michigan Power Company 3,626 450 172 4,248

Ohio Power Company 209 437 646

Public Service Company of Oklahoma 3,940 1,137 1,023 6,100

Southwestern Electric Power Company 5,225 469 126 5,820

AEP Texas** 355 355

Total Capacity 22,928 2,720 1,149 953 27,750

Energy Efficiency/Demand Response 2,021

Total Capacity & EE/DR 29,771

* AEP Generating Company has PPA with I&M (70%) and KPCo (30%) for its owned Rockport capacity.

** AEP Texas North has a PPA for its share of Oklaunion (with Competitive operations).

*** Represents AEP's 43.7% interest in Ohio Valley Electric Corporation (OVEC)

See Renewable Resources pages in “Transforming our Generation Fleet” for additional information on Renewable PPAs.

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Plant Name Units State Year Plant

Commissioned Fuel Type

Owned Coal / Lignite

Owned Gas

Owned Nuclear

Owned Hydro

Owned Solar

Owned Net Maximum Capacity (MW)

AEP Generating Company

Rockport * 2 IN 1984 Steam - Coal 1,310 1,310

Appalachian Power Company

Buck 3 VA 1912 Hydro 9 9

Byllesby 4 VA 1912 Hydro 22 22

Claytor 4 VA 1939 Hydro 76 76

Leesville 2 VA 1964 Hydro 50 50

London 3 WV 1935 Hydro 14 14

Marmet 3 WV 1935 Hydro 14 14

Niagara 2 VA 1906 Hydro 2 2

Winfield 3 WV 1938 Hydro 15 15

Smith Mountain 5 VA 1965 Pumped Storage 586 586

Ceredo 6 WV 2001 Natural Gas 516 516

Clinch River 2 VA 1958/2016 Natural Gas 465 465

Dresden 1 OH 2012 Natural Gas 613 613

Amos 3 WV 1971 Steam - Coal 2,930 2,930

Mountaineer 1 WV 1980 Steam - Coal 1,320 1,320

4,250 1,594 788 6,632

Wheeling Power Company

Mitchell 2 WV 1971 Steam - Coal 780 780

Kentucky Power Company

Big Sandy 1 KY 1963/2016 Natural Gas 280 280

Mitchell 2 WV 1971 Steam - Coal 780 780

780 280 1,060

* PPA with I&M (70%) and KPCo (30%) for capacity and energy entitlements

OWNED REGULATED GENERATION

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Plant Name Units State Year Plant

Commissioned Fuel Type

Owned Coal / Lignite

Owned Gas

Owned Nuclear

Owned Hydro

Owned Solar

Owned Net Maximum Capacity (MW)

Indiana Michigan Power Company

Berrien Springs 12 MI 1908 Hydro 7 7

Buchanan 10 MI 1919 Hydro 4 4

Constantine 4 MI 1921 Hydro 1 1

Elkhart 3 IN 1913 Hydro 3 3

Mottville 4 MI 1923 Hydro 2 2

Twin Branch 6 IN 1904 Hydro 5 5

Deer Creek 1 IN 2016 Solar 3 3

Olive 1 IN 2016 Solar 5 5

Twin Branch 1 IN 2016 Solar 3 3

Watervliet 1 MI 2016 Solar 5 5

Rockport 2 IN 1984 Steam - Coal 1,310 1,310

Cook 2 MI 1975 Steam - Nuclear 2,278 2,278

1,310 2,278 22 16 3,626

Public Service Company of Oklahoma

Comanche 1 OK 1973 Steam - Natural Gas 248 248

Northeastern (1&2) 2 OK 1961 Steam - Natural Gas 912 912

Riverside (1&2) 2 OK 1974 Steam - Natural Gas 907 907

Riverside (3&4) 2 OK 2008 Steam - Natural Gas 160 160

Southwestern (1-3) 3 OK 1952 Steam - Natural Gas 465 465

Southwestern (4&5) 2 OK 2008 Steam - Natural Gas 170 170

Tulsa 2 OK 1923 Steam - Natural Gas 319 319

Weleetka 3 OK 1975 Steam - Natural Gas 185 185

Northeastern (3) 1 OK 1979 Steam - Coal 469 469

Oklaunion 1 TX 1986 Steam - Coal 105 105

574 3,366 3,940

OWNED REGULATED GENERATION

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Plant Name Units State Year Plant

Commissioned Fuel Type

Owned

Coal /

Lignite

Owned

Gas

Owned

Nuclear

Owned

Hydro

Owned

Solar

Owned

Net Maximum

Capacity (MW)

Southwestern Electric Power Company

Stall 1 LA 2010 Natural Gas 534 534

Mattison 4 AR 2007 Natural Gas 291 291

Arsenal Hill 1 LA 1960 Steam - Natural Gas 110 110

Lieberman 3 LA 1947 Steam - Natural Gas 242 242

Knox Lee 4 TX 1950 Steam - Natural Gas 475 475

Wilkes 3 TX 1964 Steam - Natural Gas 893 893

Lone Star 1 TX 1954 Steam - Natural Gas 50 50

Welsh 2 TX 1977 Steam - Coal 1,053 1,053

Flint Creek 1 AR 1978 Steam - Coal 264 264

Turk 1 AR 2012 Steam - Coal 477 477

Pirkey 1 TX 1985 Steam - Lignite 580 580

Dolet Hills 1 LA 1986 Steam - Lignite 256 256

2,630 2,595 5,225

AEP Texas

Oklaunion* 1 TX 1986 Steam - Coal 355 355

Total Owned Regulated Net Maximum Capacity 11,989 7,835 2,278 810 16 22,928

* AEP Texas North sells its share of Oklaunion energy to AEP Energy Partners through

a PPA

OWNED REGULATED GENERATION

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Coal – West Regulated

Coal – East Regulated Total Coal - Regulated

REGULATED FUEL PROCUREMENT – 2018 PROJECTED

Fuel Stats:

- Expected 2018 Consumption: Coal: approx. 34M tons

Natural Gas: approx. 90 BCF

- Coal 68% contracted for 2018 and 41% contracted for 2019

- Avg. 2017 YTD Regulated Delivered Price:

Coal: System - ~$44/ton East - ~$49/ton

West - ~$37/ton

Natural Gas: ~$3/MMBtu

- Projected 2018 Regulated Coal Delivered Price:

System - ~$42/ton East - ~$46/ton

West - ~$36/ton

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Total AEP Regulated System

* Reflects coal delivered to AEP plants transported

through a combination of rail and barge

AEP East AEP West

REGULATED COAL DELIVERY – 2018 PROJECTED

*

Barge 57%

Rail 3%

Rail/Barge 33%

Belt 7%

*

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Arkansas

Indiana

Kentucky

Louisiana

Michigan

Oklahoma

Tennessee

Texas (SPP)

Virginia

West Virginia

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Annually

Biannually

Monthly

Monthly

Annually

Annually

Annually

Triennially*

Annually

Annually

Jurisdiction Active Fuel Clause

Adjustment

Frequency

* Fuel clause may be adjusted more frequently if a prescribed variance occurs

JURISDICTIONAL FUEL CLAUSE SUMMARY

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• AEP Transmission Holdco Legal Entity Structure

• AEP Transco Business Overview

• AEP Transco Project Mix & Footprint

• Transmission Investment Needs

• Transco State & FERC Regulatory Compacts

• FERC Formula Rate & Filings

• Active Joint Venture Projects

• Competitive Transmission – Transource

• Grid Assurance Executive Summary & Timeline

• BOLD® Strategy

• Evolution of Transmission Trackers

• Favorable Recovery of Transmission Investment

TRANSMISSION INITIATIVES

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AEP TRANSMISSION HOLDCO LEGAL ENTITY STRUCTURE AEP Transmission Company, LLC (“AEP Transco”) is wholly-owned by AEP Transmission Holding Company, LLC (“AEP Trans Holdco”)

AEP Trans Holdco is a wholly-owned subsidiary of American Electric Power Company, Inc. (“AEP”), one of the largest utility holding companies in the U.S.

Fully operational

Regulatory Approval Required

Joint Venture

$2,896M Net Plant

$322M Net Plant

Net Plant totals are as of September 30, 2017, except Pioneer and Prairie Wind, which are as of August 31, 2017.

$148M Net Plant

$143M Net Plant

$1,560M Net Plant

$87M Net Plant

$2,549M Net Plant

$872M Net Plant

$839M Net Plant

$9M Net Plant

Grid Assurance Electric

Transmission

Texas, LLC

Transource Energy, LLC

Transource Missouri, LLC

Transource West Virginia,

LLC

Transource Pennsylvania,

LLC

Transource Maryland, LLC

AEP Appalachian Transmission Company, Inc.

AEP Southwestern Transmission Company, Inc.

Electric Transmission America, LLC

Prairie Wind Transmission,

LLC

Pioneer Transmission,

LLC

AEP Transmission Company,

LLC. (“AEP Transco”)

American Electric Power

Company, Inc. (AEP)

AEP Transmission Holding Co.

LLC. (“AEP Trans Holdco”)

AEP Indiana Michigan Transmission Co., Inc.

AEP Kentucky Transmission Co., Inc.

AEP Ohio Transmission Co., Inc.

AEP Oklahoma Transmission Co., Inc.

AEP West Virginia Transmission Co., Inc.

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AEP TRANSCO BUSINESS OVERVIEW

• An unbundled transmission business focused on ensuring grid reliability at the regional and local level; formed in 2009 with seven wholly-owned FERC regulated utilities (“State Transcos”)

• Active State Transcos located in Indiana and Michigan, Kentucky, Ohio, Oklahoma, Tennessee and West Virginia

• AEP Appalachian Transco is authorized to submit projects for commission approval in Virginia

• Regulatory approvals in Arkansas & Louisiana (AEP Southwestern Transco) required before operation

• Significant investment opportunities in AEP’s transmission system provides growth opportunities for AEP Transco and provides flexibility to AEP’s integrated utility operating companies to direct capital to their distribution and generation businesses

• Improving grid reliability & resiliency

• Grid security and technology

• Customer growth

• Investments to support generation

• Upgrading aging system infrastructure

• Favorable regulatory framework including forward-looking formula rates

• Allowed returns on equity (“ROEs”) of 11.49% and 11.2% in PJM and SPP, respectively, subject to change pending 206 settlements

• Limited revenue risk and have strong counterparties through their participation in the PJM Interconnection (“PJM”) and Southwest Power Pool (“SPP”) RTOs

• Headquartered in Columbus, OH, AEP Transco is supported by the entire AEP Transmission organization. This organization plans, builds and manages all of AEP’s transmission assets.

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AEP TRANSCO PROJECT MIX

Transmission has asset replacement, local reliability and

customer projects combined with RTO mandated projects

537 361

242 164 110

95

69

45 16

18

248

372

446

417 352

337

729 701

787 874

47

30 48 91

$1,222

$1,578

$1,463 $1,433 $1,446

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2016 2017 (E) 2018 (E) 2019 (E) 2020 (E)

AEP Transco Projected Capital Expenditures by Project Category

RTO Mandated Customer Local Reliability Asset Replacement Telecom

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AEP TRANSCO FOOTPRINT

* As of September 30, 2017

The Transcos exist within the expansive service territories of AEP, operating across two RTOs and 10 states.

Transco investment opportunity is directly proportional to AEP's footprint. As the largest owner, operator and developer of

transmission infrastructure in North America, AEP Transco is well positioned for consistent and stable growth.

AEP State Trascos AEP Appalachian Transmission Co., Inc.

AEP Indiana Michigan Transmission Co., Inc.

AEP Kentucky Transmission Co., Inc.

AEP Ohio Transmission Co., Inc.

AEP Oklahoma Transmission Co., Inc.

AEP Southwestern Transmission Co., Inc.

AEP West Virginia Transmission Co., Inc.

State Transco Net Transmission Plant

($ in Millions)* 2017-2020 Capital Plan

($ in Millions)

IM Transco $1,560 $1,769

OH Transco $2,549 $2,227

OK Transco $872 $603

WV Transco $839 $1,089

KY Transco $87 $119

AP Transco $9 $112

Total $5,916 $5,919

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TRANSMISSION INVESTMENT NEEDS

* Note table and graphs refer to Transmission equipment only. Distribution equipment is not included.

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TRANSCO REGULATORY COMPACTS AEP Transco and its seven Transco subsidiaries were formed in 2009 to focus on upgrades to AEP’s

transmission system and provide financial flexibility to AEP’s electric utility Operating Companies.

A summary of regulatory approval status is provided in the table below:

State Transco

State Operational and Approval Status

OH Transco No state regulatory agency approval was required to construct and operate transmission assets in the state of Ohio. OH Transco is fully operational with assets in-service.

IM Transco Indiana Utility Regulatory Commission approval for utility status received November 2011; no Michigan approval required. IM Transco is fully operational with assets in-service.

OK Transco No state regulatory approval required for utility status. OK Transco is fully operational with assets in-service.

WV Transco In a December 2012 order, the West Virginia Public Service Commission (“WVPSC”) required WV Transco to obtain a Certificate of Public Convenience and Necessity (“CPCN”) before beginning construction on each proposed project, until WV Transco established a track record, revenue stream and utility plant base. In September 2015, the WVPSC recognized that WV Transco had established the required track record and granted WV Transco’s petition to exempt projects from the CPCN requirement, when such projects met the “ordinary extension of existing systems” condition, as established for public utilities in the West Virginia Code. WV Transco is fully operational with assets in service.

AP Transco In February 2012, the Virginia State Corporation Commission (“VSCC”) approved a service agreement between AP Transco and APCo limited to studying and evaluating potential transmission projects and for preparation of applications for future submission of project certificate applications to the VSCC. In May 2013, AP Transco and APCo filed a joint application with the Virginia SCC for the approval of the Cloverdale Extra High Voltage Transmission Improvements Project. The VSCC approved the project for APCo to construct. AP Transco can seek certification of future projects in its own name but the Virginia SCC will determine whether the project will ultimately be owned by AP Transco or APCo. AP Transco has not yet filed other project applications. As a result of separate orders issued by the Virginia SCC and the WVPSC in December 2016, AP Transco was granted consent to enter into a joint license agreement that will support investment in Tennessee. AP Transco currently has assets under construction in Tennessee.

KY Transco In February 2011, KY Transco filed an application with the Kentucky Public Service Commission (“KPSC”) in Case No. 2011-00042 seeking a CPCN to operate as a transmission-only public utility in Kentucky. In June 2013, the KPSC denied the application, stating that KY Transco could not be defined as a public utility under Kentucky statute and therefore was not subject to KPSC regulatory jurisdiction. KY Transco is fully operational with assets in service.

SW Transco Applied for public utility status in Arkansas and Louisiana in May 2011 and August 2011, respectively, with supplemental filings made in both jurisdictions. The application for regulatory approval to operate in Louisiana is under consideration, while the application for regulatory approval to operate in Arkansas was denied in January 2015.

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STATE TRANSCOS ARE REGULATED BY FERC Conservative FERC regulation results in timely recovery of costs

• In April 2011, the FERC approved a formula rate mechanism for the State Transcos

• The FERC order dictates how the State Transcos determine their rates, including the recovery of all authorized expenses and the return on and of invested plant

• The approved formula rate mechanism established an annual revenue requirement for transmission services under the PJM and

SPP OATTs, as applicable, and implemented a transmission cost of service formula rate

• Annual rate updates provide a highly predictable and stable source of revenues and income

• For PJM, each State Transco’s annual transmission revenue requirement (“ATRR”) is reset in January, establishing rates for

the one-year forward period of January to December. The rate base component of the formula rate calculation includes a

beginning and ending average transmission plant in service balance

• For SPP, each State Transco’s annual transmission revenue requirement (“ATRR”) is reset in July, establishing rates for the

one-year forward period of July to June. The rate base component of the formula rate calculation includes the prior year’s

transmission plant in service ending balance, plus the current year’s projected plant in service additions.*

• The revenue requirements are derived from the following capital structure and authorized ROEs:

Company RTO Capital Structure %

Equity Cap Authorized ROE*

ATRR**

Rate Base

AP Transco PJM 50% 11.49% $98 KH $73 KH

IM Transco PJM 50% 11.49% $150 MH $953 MH

KY Transco PJM 50% 11.49% $10 MH $60 MH

OH Transco PJM 50% 11.49% $342 MH $1,575 MH

WV Transco PJM 50% 11.49% $81 MH $508 MH

OK Transco SPP 50% 11.20% $96 MH $681 MH

SW Transco SPP 50% 11.20% $125 KH $4 KH

* Subject to change pending 206 application outcome ** PJM effective as of January 2017 and SPP effective as of July 2017

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FERC FORMULA RATE

99

The Transcos benefit from a transparent, partially forward-looking formula rate

mechanism, authorized by the FERC, which minimizes regulatory lag:

+

Operating Expenses

Prior Year (Over)/Under

Recovery

+

=

Revenue Requirement

+ Beginning & Ending Average

- Beginning & Ending Average

- Beginning & Ending Average

+ Beginning & Ending Average

+ Projected

+ Projected

+ Projected

Beginning & Ending Average

11.49%

+ Annual true-up revenue amount to (return)/collect any (over)/under recovery of revenues

= Annual Transmission Revenue Requirement (ATRR) for collection during Rate Year

x

Rate Base

WACC

Operations and maintenance expense

Depreciation & amortization expense

Tax expense

+ Prior year-end

- Current year projected

- Accumulated

+ Average

Plant in-service

Accumulated depreciation & amortization

Deferred income taxes

Working capital

+ Prior year-end

+ Prior year-end

+ Prior year-end

Prior year-end actuals

11.20%

Capital structure

ROE for Transcos

= Annual Transmission Revenue Requirement (ATRR) for collection during Rate Year (July of current year to June of following year)

PJM* SPP**

* Previously adopted forward-looking mechanism ** Subject to change pending 205 application outcome

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FERC 205 & 206 FILINGS

• 206 complaint against AEP East companies filed in October 2016

• AEP filed a 205 application in November 2016 for a modified formula rate that seeks to mitigate regulatory lag

• FERC accepted the proposed modifications effective January 1, 2017, subject to refund

• 206 complaint against AEP West companies in SPP filed in June 2017

• AEP filed a 205 application in October 2017 for a modified formula rate that seeks to mitigate regulatory lag

Transmission investment strategy unchanged

East

West

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ACTIVE JOINT VENTURE PROJECTS

* Transource Pennsylvania and Maryland: Pending settlement of a 9.9% base ROE will result in an authorized ROE of 10.4%. Non-active joint ventures and prospects excluded from the financial forecasts.

Project Name Location

Projected Complete

Date Owners (ownership %)

Total Estimated Project costs at

completion

Approved Return on Equity

Base RTO Project

Risk Total

ETT Texas (ERCOT) Ongoing BHE Texas Transco, LLC (50%), AEP

(50%) $3.1 billion 9.60% 0.00% 0.00% 9.60%

Prairie Wind Kansas 2014 Westar Energy(50%), ETA (50%) $158.1 million 10.80% 0.50% 1.50% 12.80%

Pioneer Indiana 2018 Duke Energy (50%), AEP (50%) $386 million 10.54% 0.50% 1.50% 12.54%

Transource-Iatan-Nashua Missouri 2015 AEP (86.5%), Great Plains Energy

(13.5%) $64 million 9.80% 0.50% 0.00% 10.30%

Transource-Nebraska-Sibley Missouri 2016 AEP (86.5%), Great Plains Energy

(13.5%) $248 million 9.80% 0.50% 1.00% 11.30%

Transource-WV West Virginia 2019 AEP (86.5%), Great Plains Energy

(13.5%) $67 million 10.00% 0.50% 0.00% 10.50%

Transource-PA& MD* Pennsylvania &

Maryland 2020 AEP (86.5%), Great Plains Energy

(13.5%) $225 million 9.90% 0.50% 0.00% 10.40%

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COMPETITIVE TRANSMISSION -

• The Iatan – Nashua 345 kV transmission line was placed in-service on April 8, 2015

• The Sibley – Nebraska City 345 kV line project was placed in-service on December 15, 2016

• In 2015, Transource was designated the Clendenin-Fort Walton Area Improvements

• The project is a ~25-mile 138kV line from AEP’s Thorofare Creek Station to FirstEnergy’s

Powell-Mountain-Goff Run 138 kV line with expected in-service date of June 1, 2019

• Material procurement expected to begin no later than Q4, 2017

Transource Missouri

Net CWIP/PPE Balance $312 million

YTD After-tax Net Income $9.3 million

Actual Capital Structure 45% debt

55% equity

Authorized ROE1 11.15%

1 Transource Missouri is authorized a 10.3% ROE for the Iatan-Nashua and a 11.3% ROE for Sibley-Nebraska City, resulting in a combined authorized ROE of 11.15%. 2 Transource West Virginia is authorized a base ROE of 10.0% with an approved 0.5% adder for RTO participation. 3 Figure in 2020 dollars. 4 Transource Pennsylvania and Maryland: Pending settlement of a 9.9% base will result in an authorized ROE of 10.4%.

Transource West Virginia

Total Estimated Project Size ~$67 million

YTD After-tax Net Income $0.3 million

Hypothetical Capital Structure 40% debt

60% equity

Authorized ROE2 10.5%

Transource Pennsylvania & Maryland

Total Estimated Project Size3 ~$225 million

Hypothetical Capital Structure 40% debt

60% equity

Authorized ROE4 10.4%

• On August 2, 2016, PJM Board approved a Transource project that will improve congestion in

the AEP-Dominion interface

• Independence Energy Connection’s PJM-approved project includes the construction of two

greenfield 230 kV lines (each in Pennsylvania and Maryland) and two greenfield 500/230 kV

substations (both in Pennsylvania)

• Approved incentives: Recovery of cost upon abandonment, pre-commercial costs/regulatory

asset, 100% CWIP in rate base during construction

• CPCN filings required to be submitted by June 1, 2018

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FERC Formula Rate Mechanism Example

COMPETITIVE TRANSMISSION -

+

Operating Expenses

Prior Year (Over)/Under

Recovery

+

=

Revenue Requirement

x

Rate Base

WACC

Transource benefits from a transparent, FERC-authorized, fully forward-looking formula rate mechanism, with a

true-up. This allows for Transource to minimize regulatory lag and ensure full and timely recovery of costs.

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GRID ASSURANCE EXECUTIVE SUMMARY

Company Overview

• Unregulated company that provides three cost-based services

• Optimize and purchase shared inventory of strategic spare transformers and circuit breakers

• Store and maintain equipment in a secure warehouse with transferrable warranty

• Provide logistics to facilitate equipment delivery from warehouse to impacted location

Status • Company launched May 6, 2016

• LLC execution and commencement of active marketing

• Staffed key positions – CEO, COO, Regulatory, Finance

• Developed technical specifications & operational plans – Transformer RFQ October 2017

• Acceptance/Transition Date (Subscriber and equity owner commitment) – expected December 2017

• Developing nominated quantities – 10-12 companies including founding members

• Initial commitments to nominated quantities and cost – December 2017

• Critical mass – Firm interest among core customers, critical mass expected by year end 2017

• Initial Fee Commencement Date (Inventory in warehouse) – expected April 2019

Recent severe weather phenomenon bolster support for grid security and resiliency

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GRID ASSURANCE TIMELINE

The Grid Assurance operational timeline obtains the appropriate approvals and commitments

prior to spending capital for inventory and equipment

Subscriber & Equity Investor Commitments with State

Commission Approval

Building & Equipment

Acquisition

Ongoing

Operations

2017 2018 2019 2016 2019+

Acceptance/Transition

Date (Subscriber

Commitment) 12/2017

Initial Fee

Commencement

Date (Go-Live Date) 4/2019

Company Launch 5/2016

Technical specification, warehouse and operational

plan development

Administrative, Technical and Marketing Activities

Additional Subscriptions Critical Mass Subscriptions

Equity Contributions

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BOLD STRATEGY

• Awards – Technical and Aesthetic:

• 2017 EEI Edison Award Winner – “The BOLD technology is a transformational line design for the electric power industry,

increasing efficiency and reliability.”

• 2017 CIGRE/KEPCO International Tower Design Award Grand Prize Winner – BOLD was recognized as the top design of

26 competitors for its practical and environmentally friendly design, blending both performance with aesthetics.

• Recent Energized AEP Projects:

• Robison Park – Sorenson (Fort Wayne, IN); 22 miles, double-circuit 345kV (3-conductor) and 138kV (2-conductor), tubular

structures; energized November 2016

• Meadow Lake – Reynolds (Lafayette, IN); 9 miles, double-circuit 345kV (3-conductor),

lattice structures; energized July 2017

BOLD – “Breakthrough Overhead Line Design” – is a patented compact transmission line design

developed by AEP that delivers more capacity and more efficiency in a smaller and more

aesthetically pleasing low-profile structure

• International Patents granted by European Patent Office and registered in

17 European countries

• Strategic Objectives – Build business through IP licensing fees to utilities

within the U.S. and beyond (as opportunities present themselves).

• In 2017, BOLD was awarded a continuation patent to expand elements of the

original filing, thereby increasing coverage and expanding market opportunities

• License Structure – Two license model:

• Standards License – marketed to both small group of select top-tier engineering

firms

• Use License – marketed to transmission line owners deploying BOLD on a $/line

mile basis for use on greenfield and rebuild projects

®

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EVOLUTION OF TRANSMISSION TRACKERS IN THE OPERATING COMPANIES

Base Rates

Trackers

PJM Trackers

Base Rates

Trackers

SPP Trackers

Base Rates

Trackers

ERCOT Trackers

2005 2010 2017

2005 2010 2017

2005 2010 2017

17%

83% 75%

25%

89%

11%

26%

74%

38%

62% 68%

32%

100% 100% 100%

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FAVORABLE RECOVERY OF TRANSMISSION INVESTMENT Jurisdictional Capital Investment Recovery Mechanism

• Projected $9.5 Billion of 2017 Net Plant in Service is recoverable through Trackers and from Wholesale Customers

• Projected $1.2 Billion of 2017 Net Plant in Service is recoverable through Base Rates

2017 Capital – Projected Recovery by RTO

2017 Recoverable Plant in Service ($M)

• Projected $991 Million of 2017 PJM and SPP Expenses will be recovered through Trackers

• Projected $325 Million of 2017 PJM and SPP Expenses must be recovered through either existing or future Base Rates

Projected 2017 OATT Expense ($M)

Jurisdictional Trackers provide most efficient recovery of Transmission Investment

Note: Investment based on 2017 formula rate filings

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CONTRACTED RENEWABLES

& OTHER

• Organizational Structure

• Contracted Renewables

• Competitive Generation – Owned & PPA

• Competitive 2016 Fleet Statistics

• Retail - AEP Energy

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AEP

AEP Energy Supply

AEP Generation Resources

AEP Energy Partners

AEP Energy AEP OnSite

Partners AEP Renewables

COMPETITIVE OPERATIONS

ORGANIZATIONAL STRUCTURE

Generation Wholesale Trading

& Marketing

Oklaunion PPA

Wind Operations

Retail Customer

Solutions

Business

Focused on

Assets Backed

with Long-Term

PPAs

Universal Scale

Renewable Assets

with Long-Term

PPAs

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CONTRACTED RENEWABLES

$1B CAPITAL ALLOCATED 2017-2019

Renewable Generation

Asset Owner

“Behind-the-Meter”

Energy Assets

Universal Scale

Energy Assets

Key Customers Schools, Cities, Hospitals and

Commercial / Industrial Accounts

Utilities, Municipalities,

Corporations and Cooperative

Accounts

Key Technologies

Distributed Generation,

Renewables, Storage,

Substations and Combined Heat

and Power

Wind and Solar

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CONTRACTED RENEWABLES

Letchworth School District, New York | 1.6 MW

• Committed to nearly

$200 million in energy

assets

• 21 operating projects in

9 different states (OH,

HI, NY, NH, VT, MN, CA,

NJ and FL)

• Operating projects

include customer sited

solar projects, behind

the meter energy

storage assets and a

customer sited

substation

• 15 more customer sited

solar projects are under

construction in 8

different states (CA,

CO, MN, NJ, NM,

NY, OH and TX)

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CONTRACTED RENEWABLES

Pavant Solar III (UT)

Boulder Solar II (NV)

• 20 MW solar project near Delta, Utah

• Output fully contracted with PacifiCorp under 20 year PPA

• COD on December 30, 2016

• Constructed by JSI Construction

• 50 MW solar project near Boulder City, Nevada

• Output fully contracted with NV Energy under 20 year PPA

• COD on January 27, 2017

• Constructed by SunPower

Jacumba Solar (CA)

• 20 MW solar project near Jacumba, California

• Output fully contracted with Southern California Edison under a 20 year PPA

• COD on July 25, 2017

• Constructed by BayWa and Swinerton Builders

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COMPETITIVE GENERATION – OWNED & PPA

Plant Name State Fuel Type Owned

Coal

Owned

Hydro

Owned

Wind

Owned

Solar

Owned

Net Maximum

Capacity (MW)

Cardinal 1 OH Steam - Coal 595 595

Conesville 4* OH Steam - Coal 651 651

Conesville 5 & 6 OH Steam - Coal 810 810

Stuart 1-4** OH Steam - Coal 603 603

Racine OH Hydro 48 48

Trent Mesa Wind TX Wind 150 150

Desert Sky Wind TX Wind 161 161

AEP Renewables Solar 90 90

AEP Onsite Partners Solar 26 26

Total Owned 2,659 48 311 116 3,134

PPA Resource State Fuel Type PPA

Coal

PPA

Wind

Total PPA

Capacity (MW)

Oklaunion*** TX Steam - Coal 355 355

Southwest Mesa TX Wind 177 177

Total PPA 355 177 532

Coal Hydro Wind Solar Total

Capacity (MW)

Total Owned & PPA 3,014 48 488 116 3,666

*

**

***

Represents AEP’s capacity portion of jointly owned unit, operated by AEP.

Represents AEP’s capacity portion of jointly owned unit, operated by non-affiliate; Unit 1 representing 150 MW was deactivated as of

September 30, 2017.

Represents capacity owned by AEP Texas North, operated by PSO. Competitive has PPA with AEP Texas North.

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Plant / Unit Fuel Type Delivery

FGD

Reagent

2016 FOB

Plant $/Ton

2016

$/MMBtu

2016

MWh

Produced

2016

Capacity

Factor

Cardinal 1 NAPP Barge & Truck Limestone 50.29 2.01 3,545,219 67.83%

Conesville 4* NAPP Rail & Truck Limestone 66.21 2.82 1,115,562 37.43%

Conesville 5 & 6 NAPP Rail & Truck Lime/Limestone 55.03 2.35 1,952,025 27.44%

Zimmer* NAPP 30%, ILB 70% Barge Limestone 53.15 2.20 1,327,340 45.79%

Stuart 1-4** NAPP 30%, ILB 70% Barge Limestone 45.67 1.93 2,800,168 53.13%

Oklaunion Powder River Basin Rail Limestone 34.92 2.15 1,381,779 44.31%

Racine Hydro n/a n/a 179,844 42.65%

12,301,937

COMPETITIVE 2016 FLEET STATISTICS

* Exchanged Zimmer Plant with Dynegy for an additional 312 MW of Conesville 4 in the second quarter of 2017.

** Plant scheduled to retire in the second quarter of 2018.

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Geography of customers* Customer Accounts*

Delivered Load*

RETAIL – AEP ENERGY

C&I 11%

Residential 89%

C&I 77%

Residential 23%

• Approximately 402,000 retail customer accounts

(including approximately 68,000 retail gas accounts)*

• YTD served 11.6 TWh of load*

• Seven states, focus on Ohio

* As of September 30, 2017

Ohio 72.3%

Illinois 14.7%

Pennsylvania 11.1%

New Jersey 0.9%

Maryland 0.8% Delaware 0.1% Washington DC

0.1%