Financial statements for the four subsidiaries will continue to be reported quarterly and annually on AEP’s website
COLUMBUS, Ohio, July 31, 2007 – Four American Electric Power (NYSE: AEP) subsidiaries today filed notices with the Securities and Exchange Commission (SEC) to end their financial reporting obligations with the SEC, consistent with federal securities law.
AEP Generating Co., AEP Texas Central Co., AEP Texas North Co. and Kentucky Power Co. are eligible to end their reporting obligations under the Securities Exchange Act of 1934 because each has fewer than 300 holders of record for any class of its securities. Each subsidiary filed a Form 15 with the SEC to terminate its reporting obligations under the act. Form 15 is effective upon filing without the need for further action by the SEC.
“With 10 registered subsidiaries, AEP’s overall reporting requirements under SEC rules are complex and are becoming increasingly costly. Deregistering these four subsidiaries, consistent with SEC law, allows us to streamline our quarterly and annual reporting to the SEC and avoid additional Sarbanes-Oxley Act compliance expenses related to these four subsidiaries. At the same time, we recognize that the remaining holders of securities for these subsidiaries are interested in their performance, so we will continue to provide quarterly and annual financial statements for these companies,” said Michael G. Morris, AEP’s chairman, president and chief executive officer.
AEP will continue to post quarterly financial statements, annual audited financial statements and accompanying notes to the financial statements for AEP Generating Co., AEP Texas Central Co., AEP Texas North Co. and Kentucky Power Co. on the AEP website at www.AEP.com.
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.
This report made by AEP and its Registrant Subsidiaries 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: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity when needed at acceptable prices and terms and to recover those costs through applicable rate cases or competitive rates; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for new investments, transmission service and environmental compliance); resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; AEP’s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas and other energy-related commodities; changes in utility regulation, including the potential for new legislation in Ohio and membership in and integration into regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP’s pension and other postretirement benefit plans; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.