Unassociated Document

 
UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 


 
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
 
File No 070-07167
 
REPORT FOR PERIOD
 
January 1, 2005 to March 31, 2005
 
PURSUANT TO RULE 24
 
In the matter of
 
INDIANA MICHIGAN POWER COMPANY
 
THIS IS TO CERTIFY THAT INDIANA MICHIGAN POWER COMPANY, in accordance with the terms and conditions of, and for the purposes represented by, the application or declaration herein, the order of the Securities and Exchange Commission with respect thereto, dated March 4, 1986, provides on Exhibit 1 the following information for the period January 1, 2005 through March 31, 2005:

a) summary of barging billings by month to affiliates;
b) summary of barging billings by month to nonaffiliates;
c) summary of towing billings by month to affiliates, and
d) summary of towing billings by month to nonaffiliates.
 
Exhibit 2 provides derivation of billing rates for the twelve months January 1, 2005 to December 31, 2005.
Exhibit 3 provides calculation of allowed cost of capital effective April 1, 2005.
 
 
SIGNATURE
 
 
As required by order of this Commission pursuant to the Public Utility Holding Company Act of 1935, Indiana Michigan Power Company has duly caused this report to be signed on its behalf on this 25th day of May, 2005.
 
 
By: /s/ Rebecca J. Buonavolonte

 
Rebecca J. Buonavolonte
Managing Director - Financial Reporting
American Electric Power Service Corporation

 


 
FILE NO.
 
 
070-07167

INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 24039
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2005
 
CONTENTS
 
 
Exhibit 
Summary of Billings
 
1
 
Derivation of Billing Rates   2  
Calculation of Allowed Cost of Capital   3  
 


 
Exhibit 1
 
INDIANA MICHIGAN POWER COMPANY
 
RIVER TRANSPORTATION DIVISION
 
SUMMARY OF BILLINGS
 
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2005
 
 
 
   
January 2005
 
February 2005
 
March 2005
 
   
Tons
 
Fee
 
Amount
 
Tons
 
Fee
 
Amount
 
Tons
 
Fee
 
Amount
 
         (per ton)   (000)         (per ton)    (000)        (per ton)    (000)  
BARGING SERVICE BILLINGS TO AFFILIATED COMPANIES:
         
 
 
 
 
 
       
 
 
 
 
 
       
 
 
 
 
 
                                                           
  Appalachian Power Company and 
    Ohio Power Company:
                                                       
      Sporn Plant
   
183,586
 
$
1.71
 
$
314
   
232,829
 
$
1.51
 
$
353
   
214,010
 
$
1.32
 
$
283
 
      Amos Plant
   
43,088
   
1.06
   
45
   
914
   
1.78
   
1
   
8,476
   
1.41
 
 
12
 
           
               
               
       
      Total
   
226,674
       
$
359
   
233,743
       
$
354
   
222,486
       
$
295
 
           
               
               
       
  Appalachian Power Company:
                                                       
    Mountaineer Plant
   
202,585
 
$
2.73
 
$
553
   
282,795
 
$
3.73
 
$
1,054
   
379,619
 
$
3.56
 
$
1,350
 
    Kanawha River Plant
   
-
   
-
   
-
   
11,151
   
1.30
   
15
   
43,502
   
1.37
   
60
 
           
               
               
       
      Total
   
202,585
       
$
553
   
293,946
       
$
1,069
   
423,121
       
$
1,410
 
           
               
               
       
  Ohio Valley Electric Company     98,245   $ 5.04   $ 495   7,496   $ 5.84   $ 44   2,944   $ 5.84   $ 17  
                                                         
  Indiana Michigan Power Company:
                                                       
    Tanners Creek Plant
   
155,517
 
$
3.94
 
$
613
   
219,381
 
$
3.39
 
$
744
   
180,220
 
$
4.49
 
$
809
 
                                                         
  Indiana Michigan Power Company
    and AEP Generating Company:
                                                       
      Rockport Plant
   
387,069
 
$
2.28
 
$
881
   
842,577
 
$
2.22
 
$
1,873
   
1,003,325
 
$
2.19
 
$
2,197
 
                                                         
  Ohio Power Company:
                                                       
    Cardinal Plant (Unit 1)
   
192,685
 
$
1.61
 
$
311
   
105,850
 
$
2.82
 
$
299
   
23,697
 
$
4.45
 
$
106
 
    Gavin Plant
   
8,377
   
0.98
   
8
   
-
   
-
   
-
   
-
   
-
   
-
 
    Mitchell Plant
   
11,988
   
0.70
   
9
   
11,336
   
0.65
   
7
   
-
   
-
   
-
 
           
               
               
       
      Total
   
213,050
       
$
328
   
117,186
       
$
306
   
23,697
       
$
106
 
           
               
               
       
BARGING SERVICE BILLINGS TO NONAFFILIATED COMPANIES:
         
   
         
   
         
   
 
                                                           
  Buckeye Power Company:
                                                       
    Cardinal Plant (Unit 2 & 3)
   
7,789
 
$
3.29
 
$
26
   
36,593
 
$
3.27
 
$
120
   
190,868
 
$
3.27
 
$
624
 
                                                         
  Various Companies - Freight and
     Demurrage
   
445,007
 
$
2.14
 
$
952
   
406,659
 
$
1.91
 
$
777
   
707,227
 
$
2.10
 
$
1,485
 
                                                         
  Various Companies - Rock, Sand
     and Gravel
   
68,035
 
$
2.54
 
$
173
   
35,377
 
$
2.39
 
$
84
   
168,228
 
$
2.24
 
$
378
 
 
 
Note - The above amounts include demurrage and barge charter charges.
 

 
Exhibit 1 (Continued)
 
INDIANA MICHIGAN POWER COMPANY
 
RIVER TRANSPORTATION DIVISION
 
SUMMARY OF BILLINGS
 
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2005
 
 
 
 
 
January 2005
 
February 2005
 
March 2005
 
   
(000)
 
TOWING AND CHARTER SERVICE BILLINGS TO AFFILIATED
  COMPANIES:
                
 
                
AEP Resources, Inc.: 
                
    MEMCO Barge Line
 
$
835
 
$
708
 
$
586
 
 
   
   
   
 
Appalachian Power Company and Ohio Power Company :
   
   
   
 
    Amos Plant
 
$
45
 
$
-
 
$
-
 
 
   
   
   
 
Kentucky Power Company:
   
   
   
 
    Big Sandy Plant
 
$
16
 
$
-
 
$
-
 
 
   
   
   
 
Appalachian Power Company:
   
   
   
 
    Mountaineer Plant
 
$
30
 
$
-
 
$
-
 
 
   
   
   
 
Ohio Valley Electric Company
 
$
23
 
$
-
 
$
-
 
 
   
   
   
 
Ohio Power Company:
   
   
   
 
    Gavin Plant
 
$
119
 
$
11
 
$
16
 
    Muskingum River Plant
   
-
   
-
   
2
 
    Cook Coal Terminal
   
6
   
3
   
-
 
        Total
 
$
125
 
$
14
 
$
18
 
 
   
   
   
 
TOWING AND CHARTER SERVICE BILLINGS TO NONAFFILIATED
  COMPANIES
 
$
6
 
$
318
 
$
1
 
 
Note:  The above amounts include boat charter and urea unloading facility billings.
 

                                                                      
  Exhibit 2
INDIANA MICHIGAN POWER COMPANY 
RIVER TRANSPORTATION DIVISION
DERIVATION OF BILLING RATES FOR THE PERIOD
JANUARY 1, 2005 THROUGH DECEMBER 31, 2005
BASED ON PROJECTED COSTS FOR THE PERIOD
JANUARY 1, 2005 THROUGH DECEMBER 31, 2005
(IN THOUSANDS, EXCEPT COST PER TON MILE)
 

   
Projected Cost
 
 Nonassigned Cost
 
 Upper Ohio & Kanawha
 
 Rockport Plant
 
 Cardinal Units 2&3
 
 Tanner’s Creek Plant
 
 Gavin Plant
 
DIRECT EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Rent and Depreciation
 
$
15,318
 
$
196
 
$
5,549
 
$
3,110
 
$
1,806
 
$
1,792
 
$
2,865
 
 Wages and Benefits
   
19,893
   
-
   
4,111
   
7,505
   
2,613
   
2,952
   
2,712
 
 Fuel
   
16,491
   
-
   
2,462
   
8,631
   
1,504
   
2,477
   
1,417
 
 Fuel Taxes
   
2,949
   
-
   
513
   
1,465
   
282
   
445
   
244
 
 All Other
   
8,969
   
20
   
4,828
   
1,008
   
984
   
937
   
1,192
 
     Total Direct Expenses
   
63,620
   
216
   
17,463
   
21,719
   
7,189
   
8,603
   
8,430
 
 Outside Fleeting and Towing
   
298
   
-
   
120
   
131
   
-
   
47
   
-
 
    Charted (Out) Boat Costs     5,958      -     4,842     -      -     1,116      -  
     Total Equipment Expenses
   
69,876
   
216
   
22,425
   
21,850
   
7,189
   
9,766
   
8,430
 
    Nonassigned Allocation     -     (216   87     95     -     34     -  
 Allocated Overhead Expenses
   
7,508
   
-
   
3,021
   
3,309
   
-
   
1,178
   
-
 
 Return on Investment
   
1,067
   
-
 
 
429
   
470
   
-
   
168
   
-
 
 Nonaffiliated Contracts
   
(28,625
 
-
   
(1,379
 
(1,511
 
(8,914
 
(1,307
 
(15,514
 Re-allocation to Affiliated Rates
   
-
   
-
   
(3,544
 
(3,882
 
1,725
   
(1,383
 
7,084
 
 Less Demurrage and Other Revenue
   
(4,677
)
 
-
   
(1,882
)
 
(2,061
)
 
-
   
(734
)
  -  
     Total Projected Cost (Revenue Requirement)
  $
45,149
 
$
-
  $
19,157
 
$
18,270
 
$
-
 
$
7,722
 
$
-
 
 
         
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 Adjusted Ton Miles
   
6,021,381
 
 
-
   
2,820,641
 
 
2,229,460
   
-
   
971,280
 
 
-
 
     
   
   
   
   
   
   
 
 Cost Per Adjusted Ton Mile
 
 
 
 
 
 
 
$
0.00679
 
$
0.00820
 
 
 
 
$
0.00795
   
 
 
     
   
   
   
   
   
   
 
 

 
Exhibit 3
INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
RATE OF RETURN ON INVESTMENT
 
 
 Component
 
 CAPITALIZATION AS OF
12/31/04
 
PERCENT OF TOTAL
 
EFFECTIVE COST
 
 
 AFTER-TAX WEIGHTED RATE OF RETURN
 
   
 (000)
               
Long-term Debt
$
1,052,907
 
a
47.64
%
5.55
%
c
2.64
%
 
Preferred Stock
   
69,529
 
3.14
%
 
6.10
%
c
0.19
%
 
Common Stock
   
1,087,864
 
b
 
49.22
%
 
12.00
%
d
5.91
%
 
Total
  $ 2,210,300     100.00 %         8.74
 
a) Long-term debt is net of unamortized debt expense and the unamortized loss on reacquired debt and excludes the liability for spent nuclear fuel disposal costs.
b) Common Equity includes the premium on preferred stock and excludes undistributed subsidiary earnings.
c) Cost at 12/31/04.
d) The rate ordered by the Indiana Utility Regulatory Commission in Indiana Michigan Power Company’s 1993 retail rate proceeding.
 
Rate will be applied for billing purposes to the twelve month period commencing April 1, 2005.