Amer Electric Pwr

Amer Electric Pwr is a fortune 500 stock listed company trading under  the symbol AEP on the NYSE. The Company has a good stock performance record. 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 is the nation’s largest generator of electricity, owning more than 36,000 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.

American Electric Power recently reported year-end earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of 814 million dollars, or 2.09 dollars per share, compared with 1.089 billion dollars, or 2.75 dollars per share. Ongoing earnings for 2005 were 1.063 billion dollars, or 2.73 dollars per share, compared with 924 million dollars, or 2.33 dollars per share GAAP earnings for the fourth quarter of 2005 were a loss of 149 million dollars, or a loss of 0.38 dollar per share, compared with income of 177 million dollars, or 0.45 dollar per share, in the fourth quarter of 2004. Ongoing earnings for fourth-quarter 2005 were 115 million dollars, or 0.29 dollar per share, compared with 167 million dollars, or 0.42 dollar per share, in fourth-quarter 2004.

GAAP earnings were lower than ongoing earnings for the quarter and year primarily because of one-time charges related to AEP Texas Central Company and the stranded cost true-up deliberations by the Public Utility Commission of Texas. The one-time charges totaled 279 million dollars for the year, with 261 million dollars of that total recorded in the fourth quarter. AEP believes the Texas commission has substantially completed its deliberations on the Texas Central Company’s true-up application filed in May 2005. Based on the company’s understanding of commission deliberations during public meetings held to discuss the application, the company anticipates that the commission will issue an order in February that will reduce the amount requested in Texas Central Company’s true-up application.

As a result, Texas Central Company reduced its recorded net true-up regulatory asset, inclusive of carrying costs, to approximately 1.3 billion dollars from approximately 1.7 billion dollars at Dec. 31, 2005. The ultimate amount of such charge and related cash flows will depend upon the final action of the Texas commission.

American Electric Power has a strong tradition of leadership, service and contributions. The company’s mission is bringing comfort to customers, supporting business and commerce, and building strong communities.