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SOAH DOCmT NO. 473-04-1 033 PUC DOCKET NO. 28840 9 APPLICAT,ION OF AEP TEXAS 9 BEFORE THE STATE OFFICE 9 CENTRAL COMPANY FOR 9 OF si AUTHORITY TO CJUNGE RATES 8 ADMINISTRATIVE HEARINGS

AEP TEXAS CENTRAL COMPANY’S RESPONSE TO CITIES’ TWELFTH REOUEST FOR INFORMATION

Question NO. 12-09:

[Company response to ACC-1-53] a) A review of the Miller and Modigiant articles provided in response to ACC-1-47 reveals no reference to book value capital structures, Please cite to the portion of those articles on which Mr. Moul relies for his assuinption that a difference between the per share market price of a firm and its per share book value creates a leverage financial risk difference. b) The Morh quote provide in response to ACC-1-54 indicates that firms with more debt have greater financial risk, but does not appear to address the issue of the difference in leverage caused by a difference in market price and book value. Please cite to the particular portion of Dr. MOM’Stext provided which Mr. Moul believes supports his leverage analysis.

Response No. 12-09:

a) There is no reference to book value capital structures in the attachment to the response to Cities’ First Request for Information, Question No. 1-47. Mr. Moul never claimed that the article addressed book values. The Miller and Modigliani article and the Morin text explain that increase in the level of a firm’s debt capital increases its financial risk, necessitating an increase in the cost of equity. Mr. Moul has applied that basic theory to properly account for the fact that the capital structure used for ratesetting purposes has a higher percentage of debt than does the market capitalization of the companies he used to develop his recommended return on equity. It is the variation between the book and market capitalizations that is important to the cost of capital issue in this case. Hence, the variation in the financial risk associated with alternative capital stnictures is the issue that was addressed by Mr. Mod. For example, the change in the cost of equity can be calculated with alternative capital structures associated with the market capitalization, without regard to book value. Similarly, if the market capitalization changed in such a way that its capitalization aligned with the book value, then the capital costs could be calculated at various degrees of financial risk associated with the market capitalization. In the circumstances presented in this case, however, the PUC Docket No. 28840 Cities' 12% Q. #12-09 Page 2 of 2

comparison of the proportion of book versus market capitalization, and determination of the corresponding impact on return, can and should be made for the same reasons already discussed. In summary, Mr. Moul employed the theories

employed by Miller and Modigliani in the context of substituting book value ' capitalization (the basis of ratesetting) for the market capitalization, which necessitates an in'crease in the cost of equity to account for the associated increase in finacid risk.

b. The Monn citation did not specifically address the difference in the market capitalization and the book value capitalization. For the reasons cited in r+ponse (a) above, the risk and return relationships are equally applicable where variations in financial risk can be identified with either the market vs. market, book vs. book or market vs. book capitalization. The concepts are interchangeable because the latter alternative assumes that the book value capitalization can be substituted for the market capitalization.

. ' PreparedBy: PaulR.Mou1 Title: Managhg Consultant, P. Moul & Associates Sponsored By: Paul R. Moul Title: Managing Consultant, P. Moul. & Associates A Blast from the Past

The Lull in Rate Cases Is Coming to an End

The group has performed well of late as investors have sought yield in a low interest rate environment. However, rate cases could affect the yield risk/reward for certain names in the future.

Utilities have outperformed the S&P 500 by .I 3.2% since the mid-term elections owing to a defensive investment environment, low interest rates, and the recently approved changes to dividend taxation. We believe the enacted dividend tax reduction is now fully incorporated into utility valuations. Dividend safety and growth’ will become important for individual electrics to maintain their new higher valuations.

Rate cases are likely the greatest threat to the group’s dividend growth and safety. We expect a surge in regulatory activity in the coming years arising from: 1) low interest rates; 2) the end of deregulation transition periods; and 3) new capital investment and costs not reflected in rates.

Historically, allowed returns have been 393 basis points above the 10-year Treasury yield (+/-I53 basis points), which implies decisions in the 9%+range could be ahead. Allowed returns currently enjoyed by utility companies are several hundred basis points above this level.

This report provides @ roadmap for rate cases facing 27 companies, an illustration of a standard ca ”, a ranking of state regulatory commissions, a listing of commissioners, and:$ ey contacts by state.

D Consistent with thip report, we recommend Companies with constructive regulatory environments an@ stable or growing yields. They include 1-Overweight-rated Exelon, PPL Corporation, and smaller-cap Wisconsin Energy. Some companies that would appear to have downside risk include: 3-Underweight-rated Con Edison and Northeast Utilities. A Blasi from 'the Pa9

high ROES at discos during the transition, but presents exposure in rate cases at the end of the transition.

Returns on Capital Investment Since the Previous Rate Case: Many companies that We think the industry is we follow have not had rate cases in eight to 10 years and In the interim the induq has headed toward another raIe invested billions of dollars in infrastructure. Moreover, many cos& such as post.retirement case cycle. This will be the benefits, pensions, and environmental expenditures have changed considerably. firsr cycle in eight to 70 While years. allowed ROES are attractive in the industry relative to today's interest rate environment, some companies are likely to need to seek recovery of this investment through rate increases (or to offset rate reductions).

The low Interest Rate Environment: Utility regulators are enticed to initiate rate cases when interest rates remain at a low level for a period of time while companies are motivated to do the exact opposite. Rate case decisions per quarter peaked in the last cycle at 40 in 2Q81 and continued to occur at a heightened pace through the mid- 1980s as rates were high and the capital spending cycle was coming to an end. This last cycle was clearly to the benefit of the utility. Given the significant lull since the last cycle coupled with the current interest rate environment, we expect some jurisdictions to initiate proceedings with the objective to lower rate levels.

Figure 4: Interest Rate/Rate Case Cycle

14%

30 12% ln I 25 0:tu 10% ti 20 e 9! -c 15 8%

70 6% 5

0 4%

Who's Got a Rate Case Upcoming?

Many of the companies we follow face rate cases over the next few years. The rate cases we know about are most often driven by the end of a transition period to deregulation. These cases are common in the deregulated Northeast and Midwest and, to a lesser extent, the Southwest. Some proceedings relate to requests for recovery on capital investment such as Cinergy's PSI Energy and Con Edison's Con Ed of New York. While PSI Energy has initiated a case, Con Ed of New York is likely to begin discussions

UHMAN BROTHERS June 4,2003 '. 7 105 A Blast from the Past

Conclusion: Pressure on Multitude of Delivery Utilities from Rate Cases

We believe there will be incremental pressure on a multitude of delivery-focused electric utilities from upcoming rate cases. For the most part, cases will lead to lower allowed ROES and/or rate reductions. Clearly, this will impede growth for companies that typically only grow EPS at 1%-3%. This regulatory risk should affect the companies trading at the highest multiples the most. This would include Con Edison, Northeast Utilities, Southern Company, and DQE. These companies' stocks trade at an average 14.8~2004 estimated EPS, or an 11 % premium to the average traditional electric utility. Furthermore, their average payout ratio is 76%. which is at the high end of sustainable levels. 4' What's in This Report?

In this report, we provide a primer that explains the typical rate case process. We also . include a summary of upcoming rate cases, the timing, and scope the outcomes. For reference, we also include a ranking of state regulatory agencies vis-8-vis shareholder interests. Also for reference, there is a listing by state of utility commissioners and staff contacts.

This piece also provides a roadmap for investment considerations for price performance associated with the rate case process. Historically, utilities entering cases have underperformed the group in the few months from a rate case filing to the midpoint of the process due to concerns over the implications for earnings and cash flow. By a case's midpoint, the market has also likely discounted the impact of the worst-case intervenor positions.

Interest Rates Imply a Decline in Allowed Returns

Historically. the spreads of allowed As mentioned, we believe the current low interest rate environment is likely to lead to ROES to Ihe 70year Treasury bond has more rate cases and lower allowed returns. Historically, the spread of allowed ROES to been 393 basis points, with a standard the 10-year Treasury bond has been 393 basis points, with a standard deviation of 153 deviation of 7 basis points. Based 53 basis points. Based on current 10.year Treasury levels of3.00-4.00%, we should begin on current 7 Oyear Tteasury levels of seeing some rate cases with allowed ROES in the 9% range. 3.00-4.00%we should begin seeing some rate cases with allowed ROES in the 9% range. Since 1980, the average allowed ROE was 13.8% (1,I 01 decisions) and since 1990 it was 11.8%(355 decisions). In the first quarter of 2003, the only decision out of six that was below a 10% ROE was the 9.96% received by Energy East subsidiary Rochester Gas & Electric. It is worth noting, however, that this decision applies to only a one-year period and its ROE could be reset higher in the following year. We have also begun to see Staff recommendations in rate cases in the mid-9% range. For instance, New Jersey Board of Public Utilities' staff recommended a 9.75% ROE for Public Service Electric & Gas and Jersey Central Power & light. Since 1980, the spread to treasuries was lower when rates were the highest. We think that it is only a matter of time before we see rate case decisions with allowed ROES in the 9.0 to 10.0%range.

LEHMAN BROTHERS lune 4. 2003 11 106 File No.30-150 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM U5S ANNUAL REPORT

For the year ended December 3 1,2002

Filed Pursuant to the Public Utility Holding Company Act of 1935 bY AMERICAN ELECTRIC POWER COMPANY, INC. 1 Riverside Plaza, Columbus, Ohio 43215 AMERICAN ELECTRIC POWER COMPANY, INC.

FORM U5S - ANNU& REPORT For the Year Ended December 31,2002

TABLE OF CONTENTS Page

ITEM 1. SYSTEM COMPANIES AND INVESTMENT THEREIN AS OF DECEMBER 31, 2002...... 1 - 8

ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS...... 9

ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES ...... 9

ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF . SYSTEM SECURITIES...... 10 - 13

ITEM 5. INVESTMENTS IN'SECURITIES OF NON-SYSTEM COMPANIES...... - . - ...... 14 - 15 -

ITEM 6. OFFICERS AND DIRECTORS Part I. Names, principal business address and positions held as of December 31, 2002...... 16 - 35 Part 11. Banking connections ...... 36 Part 111. Compensation and other related information. . . . 37 - 48

ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS ...... 49

ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS Part I. Contracts for services or goods between system companies...... 50 - 51 Part 11. Contracts to purchase services or goods between any system company and any affiliate ...... 51 Part 111. Employment of any person by any system company for the performance on a continuing basis of management services...... 51

ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES...... 52 - 56

ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (Index)...... 57

SIGNATURE...... 58

108 @ 2004. EDGAR Online, Inc. Item 1. sytsem Companies and Investment Therein As of December 31, 2002 Number of Cormwn Owned By Owned By Issuer Owner's ' Shares Immediate Other Book Value Book Value COMPANY NAME Owned Parent Entity (in oOO*s) ------(in Ooo*s) 00. American Electric Power Company, Inc. [Note AI 01. American Electric Power Service Corporation [Note Bl 23,500 1001 1,450 1,450 01. AEP CSI Company, LLC [Note Wl Uncertif ied 3002 19,399 19.399 02. AEP Ohio C-rcial 6 Industrial Retail Company, LLC [Note Wl Uncertified 1002 4,207 4,207 02. AEP Texas Comrcial 6 Industrial Retail GP, LLC [Note Wl Uncertified 100% 6,882 6,882 03. AEP Texas Conmercial S Industrial Retail Limited Partnership [Note Wl PartnershiD 0.502 99.502 54,592 273 02. ABP Texas Comrcial s Industrial Retail Limited Partnership [Note Wl Partnership 99.505 0.502 54,592 54,319 02. AEP 088 Power GP, LLC [Note GI Uncertif ied 1002 4,650 4,650 03. AEP Gas Power Systems, LLC [Note GI 100 754 252 2,619 2,619 01. AEP Coal, Inc. [Note L1 Uncertified 1002 (38.013) (38,013) 02. Snowcap Coal Company, Inc. [Note Ll Uncertified 100% (2631 (263) 02. AEP Kentucky coal, LLC [Note L1 Uncertified 100% (29,344 (29,344I 02. AEP Ohio Coal, LLC [Note Ll Uncertified 1002 (8,348) (8.348) 02. AEP West Virginia Coal, Inc. [Note L1 Uncertified lOOI (58) (58) 01. MPCommunications, Inc. [Note Cl 100 100% (165,078) (165,078) 02. AEP Comrmnications, LLC [Note Cl Uncertified 1002 (169,791) (169,791) 03. C3 Networks Limited Partnership [Note Cl Partnership 49.752 49.752 04. c3 Networks 6 comications Limited Partnership [Note Cl Partnership 99.502 0.502 (34) (34) 03. American Fiber Touch, LLC [Note Cl Uncertified 50% 502 23,045 23,045 03. AEP Fiber Venture, LLC [Note Cl Uncertified 100% 30,206 30,206 04. APN Comrmnications, LLC [Note Cl 5,008 492 512 5 01. AEP Eneryy Services, Inc. [Note D1 200 1002 (47,334) (47,334) 02. Energy Trading Platform Holding Company, Inc. [Note Wl Uncertified 16.7% 83.30% 03 Intercontinental Exchange Inc. Uncertif ied 0. 52 95.004 01. AEP Generating Company [Note JI ,1,000 1002 42,957 42,597 01. AEP Desert Sky LP, LLC [Note XI Uncertified 1002 8,095 8,095 02. AEP Desert Sky GP, LLC [Note XI Uncertified 1004 4,648 4,648 03. Desert Sky wind Farm LP [Note XI Partnership 12 992 1,392 1,392 01. AEP Desert LP 11, LLC [Note XI Partnership 1002 (11,147) (11,147) 02. Desert Sky Wind Farm LP [Note XI Farmerahip 99% 1% 01. Golden Prairie Holding Company LLC [Note XI Uncertified 1002 .- 02. Golden Prairie wind Farm LLC (Note XI Uncertified 1001 01. MP Investments, Inc. [Note F1 100 100% 1.771 1,761 02. AEP EmTech, LLC [Note DDI Uncertified 1002 (2,610) (2.610) 03. Altra Energy Technologies, Inc. (Note OD1 RIA 52 952 300 03. Amperion, Inc. [Note DDI N/A 38.302 61 .?Ob 03. Universal Supercapacitora, LLC [Note DDI Uncertified 502 50% 732 03. Integrated me1 Cell TeChnOlogies, Inc. (OD1 Uncertified 0.102 99.902 03. Distribution vision 2010, LLC [Note DD) Uncertified 20t 80% 02. Active Power Inc. [Note DD1 118,843 1002 211,541 211,541 02. Pantellos Corporation (Note DDI 28,883 5.40% 94.60% 5.289 02. Powerspan Corp [Note DDI N/A 9.805 90.204 5,000 02. PHPK Technologies, Inc. [Note DDI NlA 29.002 71.00% 1,303 01. Mutual Energy L.L.C. [Note Wl Uncertified 1002 16,260) 16,260) 02. Mutual Energy Service Company, L.L.C. [Note Wl Uncertified 100% 33,617 33,617 02. AEP Ohio Retail Energy, LLC [Note Wl Uncertified 100% 5.456 5,456 01. AEP Power Marketing, Inc. [Note N1 100 100% 01. AEP TSD Services, LLC [Note BBI Uncertified 100% (127) 1127) 01. AEP Pro Serv, Inc. [Note I1 110 1002 8,586 8,586 01. AEP Retail Energy LLC [Note Wl Uncertified 1002 325 325 01. AEP Texas POLR, LLC [Note Wl Uncertitied 1002 1199) 1199) 02. AEP Texas WLR GP, LE [Note Wl Uncertified 1002 (1) (1) 03. WLRPower, L.P. [Note Wl Partnership 0.502 99.502 7,784 39 02. ~LRPower, L.P. [Note Wl Partnership 99.50% 0.50% 7,784 7,745 01. AEP ReSOurCes, Inc. [Note HI 100 100% 105,194 99,946 02. AEP Delaware Investment Company [Note HI 100 100% 132,777 132,777 03. AEP Holdings I CV [Note HI 10 152 852 (288,341) (43,252) 04. AEPR Global Investments B.V. [Note HI N/A 85t 152 (399,319) (288,426) 05. AEPR Global Holland Holding B.V. [Note HI Uncertified 1002 (159,355) (178,408) 04. AEP Funding Limited [Note HI Uncertified look N/A NIA 03. REP Holdings I1 CV [Note HI Partnership 854 15% 221,122 176,111 04. AEP hergy services Limited [Note HI Uncertif ied 1001 34,711 38,087 05. AEP Energy services Trading Limited [Note HI Uncertified 1002 N/A N/A 04. AEPR Global Ventures B.V. [Note HI Uncertified 1002 (8,938) (10.150) 05. AEP Energy Services (Noway) AS [Note HI Uncertified 100% 05. operaciones Azteca VIII, S. de R.L. de C.V. [Note HI Uncertified 502 502 N/A NIA 05. Servicios Azteca VIII, S. de R.L. de C.V. [Note HI Uncertified 502 502 NIA N/A 05. AEPR Global Energy B.V. Uncertified 1002 05. AEPR Energy Venture8 B.V. Uncertified 1002 05. AEP Energy Services (Australia) Pty Ltd Uncertified 1008 05. AEP Energy services (Switzerland) ~mbH[Note HI Uncertified 100% 05. AEP Energy Services (Austria) GmbH [Note HI Uncertified 100% 05. AEP Energy services GmbH [Note HI Uncertified 100% 04. Intergen Denmark, Aps [Note HI Partnership 504 502 N/A N/A 05. Intergen Denmark Finance Aps (Note HI Partnership 1002 N/A N/A 05. Intergen Mexico, B.V. [Note HI Partnership 100% N/A N/A 06. Intergen Aztec Energy VI11 B.V. [Note HI Partnership 100% N/A N/A 07. Intergen Aztec Energy VI B.V Partnership 100% N/A N /A 07. Energia Azteca VI11 S. de R. Partnership 1002 N/A N/A 04. AEP Energy services UK Generation Limited [Note HI Uncertified 100% (168,316) (160,970) 04. Compresion Bajio S de R.L. de C.V. [Note HI Uncertif ied 504 50% N/A N/A 02. AEP Delaware Investment Company I1 (Note HI 1,000 1002 73,108 73,108 03. AEP Resources do Brazil Ltda [Note HI Uncertified 1% 99% 03. AEP Holdings I1 CV [Note HI Uncertif ied 152 852 221,122 176,111 04. AEP Energy Services Limited [Note HI Uncertified 100% 34,711 38,087 05. AEP Energy Services (Austria) GmbH (Note HI Uncertified 1002 05. AEP merw Services GmbH [Note HI Uncertified 1002 Uncertified 100% 06. AEp Energy Services Trading Limited [Note HI * 1 WY-- w- 0 2004. EDGAR Online, Inc. 04. AGPR Global Ventures B.V. [Note HI Uncertified 99.97% 0.03% [8.938) iio,i501 05. AEP Energy Services (Norway) AS [Note HI Uncertif ied 100% (11,734) (11,837) 05. operaciones Azteca VIII, S. de R.L. de C. V. [Note HI Uncertified 50% 504 N/A N/A 05. Servicios Azteca VIII, S. de R.L. de C.V. [Note HI Uncertified 504 501 N/A N/A 05. AEPR Global Energy B.V. Uncertified 100% 05. AEPR Energy Ventures B.V. Uncertified 100% 05. AEP Energy Services (Australia) Pty Ltd * Uncertified 100% 04. Intergen Denmark, Aps [Note HI Partnership 50% 501 05. Intergen Denmark Finance Aps [Note HI Partnership 50% 501 05. Intergen Mexico, B.V. [Note HI Partnership 100% 06. Intergen Aztec Energy VI11 B.V. [Note HI Partnership 1002 N/A N/A 07. Intergen Aztec Energy VI B.V. [Note HI Partnership 1002 N/A N/A 07. Energia Aeteca VI11 S. de R.L. de C.V. [Note HI Partnership 100% N/A N/A 04. AEP Energy Services UK Generation Limited [Note HI Uncertified 100% N/A N/A 04. Compresion Bajio S de R.L. de C.V. [Note HI Uncertif ied 502 50% N/A N/A 02. ACP Memo LLC [Note Yl Uncertified 100% 52.798 52,798 03. AEP Elmwood LLC [Note Y1 Uncertified 100% 04. Conlease, Inc. [Note Yl Uncertified 100% 04. International Marine Terminals [Note Yl Uncertified 33-1/34 66-2/35 02. AEP Resources Australia Holdings Pty Ltd [Note HI 1 100% (55.046) (55,046) 02. AEP Resources Australia Pty., Ltd. [Note HI 3,753,752 1001 20.912 20,912 03. pacific Hydro Limited [Note HI 23,960,963 20% 804 23,9?6 02. AEP Resources Limited [Note HI 1 100% 1,034 1,034 02. AEP Energy services Gas Holding Company [Note CC] 10 1001 324.831 324,831 03. AEP Energy Services Gas Holding Company 11, LLC [Note Uncertif ied 100% 660.428 660,428 04. Caddis Partners, LLC [Note CCI Uncertified 100% 761,217 761,217 04. AEP Energy Services Ventures 111, InC. [Note CCl 10 100% 164,894 164,894 04. HPL Holdings Inc. [Note CC] 100 1004 758.708 758,700 05. AEP Gas Marketing, LP [Note CCI Uncertified 99.502 0.501 (5,687) (30) 05. HPL GP, LLC [Note CCl 5 100% 144.988 144,988 06. HPL Resources Conpany LP [Note CCI Uncertified 0.50% 99.502 (2) (2) 06. AGP Gas Marketing, LP [Note CCl Uncertified 0.501 99.50% (5.687) (5,657) 06. Houston Pipe Line company LP [Note CCl Uncertified 0.50% 99.504 764,396 764,218 07. Mid-Texas Pipeline Company [Note CCI Uncertified 50% 50% 68.773 34,386 05. HPL Resources Company LP [Note CCI Uncertified 99.50% 0.502 (2) (2) 05. Houston Pipe Line company LP [Note CCl 995 99.505 0.50% 764,396 764,218 06. Mid-Texas Pipeline Company [Note CCl Uncertified 504 50% 68,773 34,386 04. AEP Energy Services Investments, Inc. [Note CCI 100 100% 115,313 115,313 05. LIG Pipeline Company [Note CCI 100 . 1004 115.260 115,260 06. LIG, Inc. [Note CCI 100 100% 11,502 11,502 07. Louisiana Intrastate Gas Company L.L.C. [Note CCI 100 10% 90% 115,326 11,533 08. LIG Chemical company [Note CCI 100 1004 (15,969) (15,359) 09. LIG Liquids Company, L.L.C. [Note CCl 10 102 90% 15,407 1,541 OS. LIG Liquids Company, L.L.C. [Note CCl 90 902 102 15,407 13,866 08. Tuscaloosa Pipeline Company [Note CCI 100 100% 667 667 06. Louisiana Intrastate Gas Company, L.L.C. [Note CCl 900 90% 10% 115,326 103,793 07. LIG Chemical, company [Note CCI 900 100% (15.936) (15,369) 08. LID Liquids Company, L.L.C. [Note CCl 90 10% 90% 15,407 1,541 07. LIG Liquids Company, L.L.C. [Note CCl 810 902 104 15,407 13,866 07. Tuscaloosa Pipeline Company [Note CC1 900 1004 667 667 04. AEP Energy services Ventures, Inc. [Note CCI 100 100% 16,367 16,367 05. AEP Acquisition, LLC [Note CCl Uncertified 50% 504 22.925 11,462 06. Jefferson Island Storage h Hub L.L.C. [Note CCl 50 100% 220,076 220,076 04. AEP Energy Services Ventures 11, Inc. [Note CCI 10 100% 16,418 16,428 05. AEP Acquisition, LLC [Note CC] Uncertified 50% 502 22,925 11,462 06. Jefferson Island storage 6 Hub L.L.C. [Note CCl 50 100% 220,076 220,076 02. AEP Resources International, Limited [Note HI 2 100% 27,791 27.791 03. NGLE Pushan Power, LDC [Note HI 99 99% 1% 27,927 27.647 04. Nanyang General Light Electric Co., Ltd. [Note HI Uncertified 704 30% 74,393 52,079 03. AEP Resources Project Management Company, Ltd. [Note HI Uncertif ied 100% 275 275 04. NGLE Pushan Power, LM: [Note HI 99 12 99% N/A N/A 05. Nanyang General Light Electric Co., Ltd. [Note HI Uncertified 70% 3 02 N/A N/A 02. AEP Resources do Brazil Ltda [Note HI Uncertified 994 12 N/A N/A 02. Ventures Lease Co., LLC [Note HI Uncertified 100% (17) (171 02. United sciences Testing, Inc. Uncertified 1004 4,342 4,342 02. AEPR Ohio, LLC Uncertified 100% 19,436 19,436 03. AEP Delaware Investment Company I11 [Note HI Uncertified ZOO% 508,544 438,280 04. AEP Holdings I CV [Note HI Uncertified 852 154 1288.341) (43,252) 05. AEPR Global Investments BV [Note HI Uncertified 85% 154 (399,319) (288,426) 06. AEPR Global Holland Holding BV INote HI Uncertified 100% (159,355) (178,408) 06. AEP Energy Services UK Generation [Note HI Uncertified 100% WA N/A 04. AEPR Global Investments BV [Note HI Uncertified 152 85% 1288,341) (43.252) 05. AEPR Global Holland Holding BV [Note HI Uncertified 100% 05. AEP Energy Services UK Generation Limited [Note HI Uncertified 100% 01. Appalachian Power Company [Note Jl 13,499,500 98.7% 1.3% 1,166,057 1,166,057 02. Cedar Coal Co. [Note Kl 2,000 100% 4,941 4,941 02. Central Appalachian Coal Company [Note K1 3,000 100% 766 766 02. Central Coal Company [Note Kl 1,500 5 0% 5 0% 604 604 02. Southern Appalachian Coal Company [Note Kl 6,950 1004 10,327 10,327 01. Columbus Southern Power Company [Note Jl 16,410,426 100% 847,664 847,664 02. Colomet, Inc. [Note TI 1,500 100% 3,616 3,616 02. Conesville Coal Preparation Company [Note MI 100 100% 1,670 1,670 02. Simco Inc. [Note Nl 90,000 100% 422 422 02. Ohio Valley Electric Corporation [Note Jl 4,300 . 4.30% 39 .go% 430 430 03. Indiana-Kentucky Electric Corporation [Note Jl 17,000 100% 01. Franklin Real Estate Company [Note TI 100 100% 30 30 02. Indiana Franklin Realty, InC. [Note TI 10 100s 01. Indiana Michigan Power Company [Note 51 1,400,000 lOOb 1,018,654 1,020,299 02. Blackhawk Coal Company [Note K1 39.521 100% 50,154 50.154 02. Price River Coal Company [Note Kl 1,091 100% 27 27 01. Kentucky Power Company [Note Jl 1,009,000 100% 298,018 304,244 01. Kingsport Power Company [Note Jl 410,000 100% 24,213 24,213 01. Ohio Power Company [Note Jl 27,952,473 99.2% 0.8% 1,233,114 1,233,114 02. Cardinal operating Company [Note El 250 50% 50% 43,145 21,573 02. Central Coal Company [Note Kl 1,500 50# 50% 604 604 01. Ohio Valley Electric Corporation [Note Jl 39.900 39.901 4.30% 3,990 3,990 02. Indiana-Kentucky Electric Corporation [Note J] 100% 1 1 0 171000 01. Wheeling Power Company [Note Jl 150,000 1004 26,859 26,859 01. Central and South West Corporation [Note 01 100 1004 2,185,829 2,185,829 . 02. AEP Texas Central Company [Note 51 2,211,678 1004 1,101,134 1,101,134 03. CPL Transition Punding LLC (DE) [Note AAI Uncertified 1004 3,987 3,987 02. Public Service Company of Oklahoma [Note 51 9,013,000 1004 3 99 399 03. AEMT, Inc. [Note DO1 383,904 274 634 03. Powerware Solutions, Inc. [Note DDI Uncertified I2 964 03. RIKA hanagement Company, LLC Uncertified 504 504 04. Universal Power Products Company, LLC Uncertified 484 04. Automted substation Development Company, LM: Uncertified 714 04. Rc Training, LLC Uncertified 4 84 02. Southwestern Electric Power Company [Note Jl 7,536,640 1004 662 662 03. The ?u-klahoma Corporation [Note PI 238 44.204 55 .EO4 363 184 03. southwest Arkansas Utilities Corporation [Note TI ' 100 1004 10 10 03. Dolet Hills Lignite company, LLC [Note Ll Uncertif ied 1004 23 23 02. AEP Tews North Company [Note Jl 5,488,560 1004 180,744 180,744 02. csw Leasing, Inc. [Note Q1 800 804 204 15,638 15,638 02. AEP Credit, Inc. [Note Rl 246 1004 28,227 28.227 02. C3 Comnunications, Inc. [Note Cl 1,000 1004 (177,581) (177,5811 03. C3 Networks GP, L.L.C. [Note Cl Partnership 1004 04. c3 Networks 6 comnunications Limited Partnership [Note Cl Partnership 0.502 99.502 04. C3 Networks Limited Partnership [Note C1 Partnership 0.504 49.754 05. c3 Networks a conmwnications Limited Partne CJ Partnership 99 .SO4 0.502 03. C3 Networks Limited partnership [Note Cl partnership 49.754 49.754 04. c3 Networks 6 comnunications Limited Partnership [Note Cl Partnership 99.502 0.504 03. CSWC Southwest Holdings, Inc. [Note Cl Uncertified 1004 1 1 04. CSWC TeleChoice Management, Inc. [Note Cl Uncertified 1004 1 1 04. CSWC License, Inc. [Note Cl Uncertified 1004 1 1 04. INFINITEC Networks, InC. [Note Cl Uncertified 11.902 88 .lob NIA N/A 02. Csw Qlergy, Inc. [Note SI 1,000 1002 50,469 50,469 03. AEP wind GP, LLC [Note XI Uncertified 1002 1,307 1,307 04. Trent Wind Farm, LP [Note XI Partnership 14 994 1,307 1,307 03. AEP Wind LP 11, LLC [Note XI Uncertified 1004 04. Trent Wind Farm, LP [Note XI Partnership 992 14 129,428 129.428 03. AEP Wind LP, UC [Note Xl Uncertif ied 1004 129.428 129,428 03. CSW Development-I, Inc. [Note SI 1,000 1004 58.088 58; 088 04. Polk Power GP 11, Inc. [Note SI 500 504 504 691 691 05. Polk Power GP, Inc. [Note SI 1,000 1002 3 72 372 06. Polk Power Partners, LP (Note SI Partnership 12 49 .SO2 577 577 07. Mulberry Holdings, Inc. [Note 1,000 1004 04. CSW Mulberry 11, Inc. [[Note SI 1,000 1004 27,653 27,653 05. cSW Mulberry, Inc. [Note SI 1,000 1004 27,654 27,654 04. Polk Power Partners, LP [Note SI Partnership 49 .SO4 12 26,387 26,387 05. Mulberry Holdings, Inc. [Note Nl 1,000 1004 04. Noah I Power GP, Inc. [Note SI 1,000 1004 5 5 05. Noah I Power Partners, LP [Note SI partnership 14 954 175 175 06, Brush Cogeneration Partners [Note Partnership 502 502 04. Noah I Power Partners, LP [Note SI Partnership 954 12 16,588 16.588 05. Brush Cogeneration Partners [Note SI Partnership 502 504 17,879 17,879 04. orange cogeneration GP 11, Inc. [Note SI 500 502 502 41 41 05. Orange Cogeneration G.P., Inc. [Note SI 1,000 1004 81 81 06. Orange Cogeneration Limited Partne [Note SI Partnership 12 49.502 61 61 07. Orange Cogen Funding Corp. [Note SI 1,000 1004 1 1 08. Orange Holdings, Inc. [Note N1 1,000 1004 04. CSW Orange 11, Inc. [Note SI 1,000 1004 7,366 7,366 05. csw Orange, Inc. [Note SI 1,000 1004 7,366 7,366 06. Orange Cogeneration Limited Partnership [Note SI Partnership 49.504 14 3,025 3,025 07. Orange Cogen Funding Corp. [No 1,000- 1004 08. Orange Holdings, Inc. [Note Nl 1,000 loot 03. csw Development-11, Inc. [Note SI 1,000 1002 (3.999) (3,999) 03. CSW Ft. Lupton, Inc. [Note SI 1,000 1004 98,714 98,714 04. Therm) Cogeneration Partnership, L.P. [Note SI Partnership 502 49.504 10,716 10,716 03. Newgulf Power Venture, Inc. (Note SI 1,000 1004 3,098 3,098 03. CSW Sweeny GP I, Inc. [Note SI 1,000 1002 632 632 04. CSW Sweeny GP 11, Inc. [Note SI 1,000 1002 959 959 05. Sweeny Cogeneration Limited Partnership [Note SI Partnership 12 4 94 522 522 03. CSW Sweeny LP I, Inc. [Note SI Partnership 1008 25,333 25,333 04. CSW Sweeny LP 11, Inc. [Note SI Partnership 1002 37,909 37.909 05. Sweeney Cogeneration Limited Partnership [Note SI Partnership 492 14 25,582 25,582 03. csw Development-3, Inc. [Note N1 Uncertified 1002 N/A N/A 03. CSW Northwest GP, Inc. [Note Nl Partnership 1004 N/A N/A 03. CSW Northwest LP, Inc. [Note Nl Partnership 1002 N/A N/A 03. CSW Power Marketing, Inc. [Note Nl Uncertified 1004 NIA N/A 03. CSW Nevada, Inc. [Note N1 Uncertified 1004 N/A N/A 03. CSW Services International, Inc. [Note 11 1,000 1004 2,731 2,731 03. Diversified Energy Contractors company, LLC [Note 11 1,000 1004 12,638 12,638 04. DECCO I1 LLC [Note I1 1,000 1002 05. Diversified Energy Contractors, LP [Note I1 Partnership 0.994 99.011 (52) (52) 04. Diversified Energy contractors, LP [Note 11 Partnership 992 (1.994 (5,141) (5,1411 04. Industry and Energy Associates, L.L.C. [Note I1 1,000 1004 1,328 1,328 03. CSW Eastex GP I, Inc. [Note SI 1,000 1004 (1,125) (1,125) 04. CSW Eastex GP 11, Inc. [Note SI 1,000 1004 (1.125) (1,125) 05. Eastex Cogeneration Limited Partnership [Note SI Partnership 14 4 94 (1.966) (1,966) 03. csw Eastex LP I, Inc. [Note SI 1,000 1001 (55,309) (55,309) 04. csw Eastex LP XI, Inc. [Note SI 1,000 1004 (53.189) (53,189) Of. Eastex Cogeneration Limited Partnership [Note SI Partnership 494 14 (96,324 (96,324) 03. Southwestern Wholesale Electric Company [Note N1 Uncertif ied 1004 N/A N/A 02. CSW International, Inc. [Note HI 1,000 1004 (43,468) (43,468) 03. CSWI Netherlands, Inc. [Note HI N/A 1004 03. CSW International Two, Inc. [Note HI 1,000 1004 04. CSW UK Holdings [Note HI 427,275,004 1004 ai9 819 05. CSWI Europe Limited [Note HI 1,000 1002 (31,655) (31.655) 06. South Coast Power Limited [Note HI 1 502 502 06. Shoreham operations Company Limited [Note HI 2 502 502 05. csw UK Finance company [Note HI 427,275,002 904 102 04. CSW UK Finance Company N/A 102 901 04. CSW UK Investments Limited [Note HI Uncertified 1004 03. cw International (u.K.), Inc. [Note Nl Uncertified 1002 03. CSW International, Inc. (a Cayman Island Company) [Note HI 1,000 1002 181,167 181,167 04. CSW Vale L.L.C. [Note HI Partnership 992 12 173,091 173,091 05. Caiua-Servicos de Electricidade S/A [Note HI 8,724,909 20.024 61.482 05. Empreea de Electricidade Vale de Paranapanem S.A. [Note HI 214,498.445 43.842 56.162 06. Caiua-Servicos de Electricidade S/A [Note HI N/A 61.482 20.022 04. CSW Power do Brazil, Ltda [Note HI Uncertified 0.102 99.901 03. cw Vale L.L.C. [Note HI Partnership 12 992 1.748 1,748 04. CSW Power do Brazil, Ltda [Note HI Uncertified 99.902 0.1oc 04. Caiua-servicos de Electricidade S/A [Note HI N/A 20.022 61.482 04. Empresa de Electricidade Vale de Paranapanem S.A. [Note HI N/A 43.842 56.lbZ 05. Caiua-Servicos de Electricidade S/A [Note HI N/A 20.022 61.482 03. CSW International Energy Development Ltd. [Note HI Uncertif ied 1002 04. Tenaska CSW International Ltd. [Note HI 1,000 SO2 502 02. Enershop Inc. [Note 11 N/A 1004 (19.8SZ) (19,852 03. Envirothenn, Inc. [Note I1 N/A 1002 N/A N/A 02. CSW Energy Services, Inc. [Note I1 N/A IO02 N/A N/A 03. AEP Properties, LK [Note XI N/A 1002 N/A N/A 03. Nuvest, L.L.C. [Note Ul N/A 92.904 7.102 N/A N/A 04. National Temporary services, Inc. [Note U1 N/A 1002 N/A N/A 05. Octagon, Inc. [Note Ul N/A 1002 N/A N/A 04, Numdnco, L.L.C. [Note VI N/A 1002 N/A WA 05. NuSun, Inc. [Note Ul N/A 1002 N/A N/A 06. sun Technical services, Inc. [Note Ul N/A 100% N/A N/A 06. Calibration and Testing Corporation [Note Ul N/A 1002 N/A N/A 05. ESG, L.L.C. [Note Ul N/A 502 501 N/A N/A 05. ~umancoServices, LLC [VI N/A 1002 N/A N/A 02. REP Holdco, LLC [Note Wl 3,000 1004 1002 115,4 56 115.456 03. Mutual mergy SWEPCO L.P. [Note Wl Uncertified 99.502 0.502 2,153 2,142 03. REP General Partner LLC [Note Wl Uncertif ied 100 .002 7,671 7,672 04. Mutual Energy SWEPCO L.P. [Note Wl Uncertif ied 0.502 99.50b 2,153 11

Notes: A. Public utility holding company. B. Management, professional and technical services. C. Telecommunications. D. Broker and market energy commodities. E. Generation. F. Investor in companies developkg energy-relatedideas, products and technologies. G. Distributed generation products. H. International energy-related investments. I. Non-regulated energy-related services and products. J. Domestic electric utility. K. Coal mining (inactive). L. Coal mining (active). M. Coal preparation. N. Inactive. 0. Subsidiary public utility holding company. P. Electric transmission. Q.Leasing. R. Accounts receivable factoring. S. Independent power. T. Real estate. U. Staff augmentation to power plants. V. Retail energy sales. W. Marketing of natural gas, electricity or energy-related products. X. Wind Power Generation. Y. Barging Services AA. Finance Subsidiary BB. Energy services including operations, supply chain, transmission and distribution CC. Gas pipeline and processing DD. Domestic energy-related investments, trading and other projects

CHANGES from 1/1/2002 through 12/31/2002 ______----1. Formations Jurisdiction______-___ Date---- Business--_----- a. AEP Desert Sky LP 11, LLC, Delaware, 8/1/2002, Wind Power Generation Delaware 8/1/2002 Wind Power Generation b. AEP Energy Services (Australia) Pty Lt Aus t ra 1 i a 1/24/2002 International energy- related investments. trading and other projects c. AEP Wind LP 11, LLC Delaware 8/1/2002 Wind Power Generation d. AEP Energy Ventures B.V. Amt erdam 4/23/2002 International energy- related investments, trading and other projects e. Golden Prairie Holding Company LLC De 1 aware 7/26/2002 Wind Power Generation f. Golden Prairie Wind Fan LLC Delaware 7/26/2002 Wind Power Generation g. universal supercapacitors, LLC Delaware 4/16/2002 Domestic energy-related investments, trading and other 1 I2 projects h. AEPR Global Energy B.V. Amsterdam 4/23/2002 International energy- related investments, trading and other pro j ects

Changes in status Type of change Date 2.__. .______------_--- -- ______-_----- a. AEP Resources services, LLC Dissolved 6/10/2002 b. AEP Resources Gas I Pty., Led. Dissolved 6/10/2002 C. AEP Resources Gas I1 Pty., Ltd. Dissolved 6/10/2002 d. AEP Resources Management Pty. Ltd. Dissolved 6/10/2002 e. Appliance Protect Limited sold 7/29/2002 Sale of SEEBOARO f. Ash Creek Mining Company Dissolved 8/5/2002 9. AustKalia'S Energy Partner Sold 8/30/2002 Sale of CitiPower h. Chile Energy Holdings, L.L.C. Dissolved 6/28/2002 1. citipower I Pty. Ltd. (Australian Co. No. 085 166 589) Sold 8/30/2002 Sale of CitiPower j. citipower 11 Pty. Ltd. (Australian Co. NO. 085 166 409) Sold 8/30/2002 Sale of CitiPower k. CitiPower Pty. (Australian Co. No. 064 651 056) Sold 8/30/2002 Sale of CitiPower 1. CitiPower Trust Sold 8/30/2002 Sale of CitiPower m. CSW Frontera GP I, InC. Dissolved l0/31/2002 n. csw Frontera GP 11, Inc. Dissolved 10/10/2002 0. CSW Frontera LP I, Inc. Dissolved 10/31/2002 P. csw Frontera LP 11, Inc. Dissolved 10/18/2002 q. CSW International Three, Jnc. Merged 11/1/2002 Merged into CSW International Two, Inc. r. CSW Investments sold 7/29/2002 Sale of SEEBOARD 8. CSW Leasing, Inc. Di s solved 12/13/2002 t. COW UK Limited Sold 7/29/2002 Sale of SEEBOARD ' u. Direct Power Limited Sold 7/29/2002 Sale of SEEBOARD v. Energia de Mexicali 6. de R.L. de C.V. Dissolved 11/11/2002 w. Energy Express Limited Sold 7/29/2002 sale of SEEBOARD x. ESG Indonesia, L.L.C. Dissolved 1/1/2002 y. ESG Technical Services, L.L.C. Dissolved 1/1/2002 z. First Electricity Limited sold 7/29/2002 sale of SEEBOARD aa. First Gas Limited Sold 7/29/2002 Sale Of SEEBOARD bb. Home Electricity Company Limited Sold 7/29/2002 Sale of SEEBOARD cc. Home Energy Company Limited Sold 7/29/2002 Sale Of SEEBOARD dd. Horizon Natural Gas Limited Sold 7/29/2002 Sale of SEEBOARD ee. Xndian Mesa Power Partners I LP ' Merged 4/26/2002 Merged into Desert sky wind Farm, L.P. ff. Latin American Energy Holdings, Inc. Dissolved 8/30/2002 9g. Light 6 Power (UK) Limited Sold 7/29/2002 Sale of SEEBOARD hh. Longfield Insurance Company Limited Sold 7/29/2002 Sale of SEEBOARD ii. Marregon [No. 2) Pty. Limited (Australian Co. No. 083 953 575) Sold 8/30/2002 Sale of CitiPower jj. Marregon Pty Limited (Australian Co. No. 085 210 117) Sold 8/30/2002 Sale of CitiPower kk. Medway Power Limited Sold 7/29/2002 Sale of SEEBOARD 11. Mutual Energy CPL L.P. Sold I2/23/2002 Sale to Centrica m. Mutual Energy WTU L.P. Sold 12/23/2002 Sale to Centrica M. National Environmental Services Technology, L.L.C. Dissolved 00. Power Asset Development Company Limited Sold 7/29/2002 Sale of SEEBOARD PP. Power Networks Limited Sold 7/29/2002 sale of SEEBOARD, qq. Powercare Limited Sold 7/29/2002 Sale of SEEBOARD rr. Premier Utilities Limited Sold 7/29/2002 Sale Of SEEBOARD 88. SEEB Limited Sold 7/29/2002 sale of SEEBOARD tt. SEEBOARD [Generation) Limited Sold 7/29/2002 Sale of SEEBOARD uu . SEEBOARD Asset Management Limited Sold 7/29/2002 Sale of SEEBOARD W. SEEBOARD contracting service6 Limited Sold 7/29/2002 Sale of SEEBOARD ww. SEEBOARD Employment Services Limited Sold 7/29/2002 sale Of SEEBOARD xx. SEEBOARD Energy Gas Limited Sold 7/29/2002 Sale of SEEBOARD YY. ESG Technical Services, L.L.C. Dissolved 7/29/2002 ZZ . SEEBOARD Final Salary Pension Plan Tmstee Company Ltd. Sold 7/29/2002 Sale of SEEBOARD aaa. SEEBOARD Group P.L.C. Sold 7/29/2002 Sale of SEEBOARD bbb . SEEBOARD Highway Services Limited Sold 7/29/2002 Sale of SEEBOARD ccc. SEEBOARD Insurance Company Limited Sold 7/29/2002 Sale of SEEBOARD ddd . SEEBOARD International Limited Sold 7/29/2002 Sale Of SEEBOARD eee . SEEBOARD Metering Limited Sold 7/29/2002 Sale Of SEEBOARD fff. SEEBDARD Metro Holdings Limited Sold 7/29/2002 sale Of SEEBOARD 999. SEEBOARD Natural Gas Limited Sold 7/29/2002 Sale Of SEEBOARD hhh . SEEBOARD P.L.C. Sold 7/29/2002 Sale of SEEBOARD iii. SEEBOARD Pension Investment Plan Trustee Company Limited Sold 7/29/2002 sale Of SEEBOARD jjj. SEEBOARD Power Networks PIC Sold 7/29/2002 Sale Of SEEBOARD IC!&. SEEBOARD Powerlink Holdings Limited Sold 7/29/2002 Sale of SEEBOARD 111. SEEBOARD Powerlink Ltd. Sold 7/29/2002 Sale of SEEBOARD m. SEEBOARD Projects Limited Sold 7/29/2002 sale of SEEBOARD nnn . SEEBOARD Share Scheme Trustees Ltd. Sold 7/29/2002 Sale of SEEBOARD 000. SEEBOARD Trading Limited Sold 7/29/2002 Sale Of SEEBOARD PPP * Selectricity Limited Sold 7/29/2002 Sale Of SEEBOARD ¶q¶. South Eastern Electricity Board Limited Sold 7/29/2002 Sale Of SEEBOARD rrr. South Eastern Electricity Limited Sold 7/29/2002 sale Of SEEBOARD 858. South Eastern Services Limited Sold 7/29/2002 Sale Of SEEBOARD ttt. South Eastern Utilities Limited Sold 7/29/2002 Sale of SEEBOARD uuu . Southern Gas Limited Sold 7/29/2002 Sale Of SEEBOARD w. Torch Natural Gas Limited Sold 7/29/2002 Sale of SEEBOARD www. IJK Electricity Limited Sold 7/29/2002 Sale of SEEBOARD xxx. UK Light & Power Limited sold 7/29/2002 Sale of SEEBOARD yw. West Virginia Power Company Dissolved 3/25/2002 Date---_ a. AEP Indian Mesa GP, LLC to AEP Desert Sky GP, LLC 6/3/2002 b. AEP Energy Services Gas Holding Company LP, LLC to AEP Desert Sky LP 11, L 12/31/2002 C. AEP Indian Mesa LP, LLC to AEP Desert Sky LP, LLC 6/3/2002 d. Central Power and Light Company to AEP Texas Central Company 12/23/2002 e. West Texas Utilities Company to AEP Texas North Company 12/23/2002 d. AEP Energy Services Gas Holding Company GP, LLC to AEP Wind LP 11, LLC 12/31/2002 e. C3 Communications, LLC to AEPR Ohio, LLC 1/14/2002

~ f. AEP Resources CitiPower I1 Pty. Ltd. to Citipower I Pty. Ltd. 4/12/2002 I g. AEP Resources CitiPower I Pty. Ltd. To CitiPower I Pty. Ltd. 4/12/2002 h. CSWC TeleChoice, Inc. to CSWC License, Inc. 0/29/2002 I. Indian Mesa Power Partners I1 LP to Desert Sky Wind Farm LP 4/26/2002 j. REP Holdco, Inc. to REP Holdco, LLC through Conversion of entity 12/31/2002 k. Universal Supercaps, LLC to Universal Supercapacitors, LLC 4/17/2002

a. Transferred ownership of Powerspan Corp. from AEP Pro Serv, Inc. to AEP Investments, Inc. 7/12/2002 b. Transferred ownership of AEP Energy Services (Austria) Gmbh from AEP Energy Services Limted to AEPR Global Ventures B.V. 7/11/2002 C. Transferred ownership of AEP Energy Services Gmbh from AEP Energy Services Limited to AEPR Global Ventures B.V. 7/12/2002 d. Transferred ownership of AEP Energy Services (Switzerland) Gmbh from AEP Energy Services Limited to AEPR Global Ventures B.V. 6/19/2002 e. Transferred AEP Delaware Investment Company I11 from 'AEP Resources, Inc. to AEPR Ohio, LLC ' 1/15/2002 f. Transferred C3 Networks GP, LLC from AEP Communications, LLC to C3 Communications, LLC to C3 Commpications, Inc. 5/1/2002 g. Tranferred AEP Holdings I1 C.V from AEP Holdings I C.V. to AEP Delaware Investment Company 6/19/2002

1 I4 0 2004. EDGAR Online, Inc. JANUARY 5, 2001 VALUE LlNE SELECTION &E OPINION PAGE 4499 -.. - - Selected Yields - 3Months Year 3Months Year Recent Ago Ago Recent Ago 430 (1 2/28/00) (9/28/00) 02/29/99) - (12/28/00) - (9/28/00) (12/29/99)-

TAXABLE Mortgage-Backed Securities Market Rates GNMA 8% 7.28 7.69 7.84 Discount Rate 6.00 6.00 5.00 FHLMC 8% 7.14, 7.74 7.79 Federal Funds 6.50 6.50 5.50 FNMA 8% 7.11 7.73 7.80 Prime Rate 9.50 9.50 8.50 FNMA ARM 7.05 7.06 6.46 30-day CP (Al/p1) 6.25 6.49 5.50 Corporate Bonds 3-month LlBOR 6.40 6.81 6.00 Financial (10-year) A 7.25 7.75 7.64 Bank CDs Industrial (25/30-year) A 7.66 7.92 7.70 6-month 5.08 5.13 4.79 Utility (25/30-year) A 7.76 7.98 8.12 1-year 5.26 5.43 4.91 Utility (25/30-year) Baa/BBB 7.92 8.27 8.35 5-year 5.56 5.86 5.71 Foreign Bonds (10-Year) U.S. Treasury Securities Canada 5.39 5.79 6.18 %month . 5.88 . 6.20 5.22 Germany 4.91 5.25 5.31 6-month 5.78 6.26 5.68 Japan 1.65 1.88 1.67 1 -year 5.41 6.06 5.90 United Kingdom 4.92 5.29 5.4 1 5-year 5.02 5.82 6.28 Preferred Stocks 10-year 5.12 5.78 6.38 Utility A 6.76 6.80 6.70 30-year 5.44 5.84 6.43 Financial A, 5.95 5.79 5.57 30-year Zero 5.49 5.88 6.44 Financial Adjustable A 4.97 5.53 5.30

TAX-EXEMPT Treasury Security Yield Curve Bond Buyer Indexes 20-Bond Index (GOs) 5.14 ,563 6.00 25-Bond Index (Revs) 5.48 5.85 6.22 General Obligation Bonds (COS) 1-year Aaa 3.95 4.31 3.95 1-year A 4.06 4.46 4.20 5-year Aaa 4.15 4.53 4.68 5-year A 4.34 4.75 4.95 10-year Aaa 4.39 4.82 5.08 10-year A 4.59 5.08 5.36 25130-year Aaa 5.16 5.62 5.94 25/30-year A 5.39 5.87 6.21 Revenue Bonds (Revs) (25/30-Year) Education AA 5.28 5.60 6.1 3 Electric AA 5.29 5.65 6.1 6 Housing AA 5.75 5.95 6.40 Mor. Yun Hospital AA 5.90 6.00 6.44 Toll Road Aaa 5.37 5.80 6.29

Federal Reserve Data

BANK RESERVES (Two- Week Period; in Millions, Not Seasonally Adjusted) Recent levels Average levels Over the last. .. 12/27/00 12/13/00 Change 12Wks. 26Wks. 52 Wks. Excess Reserves 1467 1136 331 1214 1138 1212 Borrowed Reserves 285 159 126 323 429 365 Net Free/Borrowed Reserves 11 82 977 205 891 709 84 7

MONEY SUPPLY (One-Week Period; in Billions, Seasonally Adjusted) Recent levels Growth Rates Over the last... 12/18/00 12/11 /00 Change 3 Mos. 6 Mos. 12 Mos. MI (Currencytdemand deposits) 1080.4 1073.6 6.8 -4.2% -4.1 % -3.6% M2 (M1+savings+small time deposits) 4929.1 491 1.4 17.7 5.4% 5.6% 5.7% M3 (MZ+large time deposits) 7051.6 6995.9 55.7 7.3% 8.6% 8.5%

a 0 2001 Vu Pam, IN.All riphls reserved. Feclual malerial is obbined horn sources believed b be reliaMe and is provided wilhoul wananbe8 01 try kind. THE PUBLIiHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This pubkalbn is rlrklly lor rubscrber'r own, noncommercial, hlernal ME.No pari of II my be reproduced, $lored or bansmined in any prinled, eleclronk or oWr brm, 01 used lor generaling or rnaik0UnQ any prinled or elecbonk pu#icalkn, cefvE8 or producl . 115 JANUARY 4, 2002 VALUE LINE SELECTION & OPINION PAGE 3855 Selected Yields

TAXABLE Mortgage-Backed Securities Market Rates GNMA 8% 6.08 5.62 7.28 Discount Rate 1.25 2.50 6.00 FHLMC8Yo 5.81 5.1 5 7.14 Federal Funds 1.75 3.00 6.50 FNMA8% 5.80 5.00 7.1 1 Prime Rate 4.75 6.00 9.50 FNMAARM 4.80 5.40 7.05 30day CP (Alp11 1.80 2.57 6.25 Corporate Bonds 3-month LiBOR 1.88 2.59 6.40 Financial (1 0-year) A 6.77 6.44 7.25 Bank CDr industrial (25/30-year) A 6.88 7.11 7.66 . &month 1.62 2.58 5.08 Utility (25/30-year) A 7.14 7.66 7.76 1-year 1.92 2.71 5.26 Utility (25/30-year) Baa/BBB 7.49 ,8.03 7.92 5-year 4.1 1 4.16 5.56 Foreign Bonds (10-Year) U.S. hawry Securities Canada 5.11 4.97 5.39 3-month 1.73 2.37 5.88 Germany 4.94 4.79 4.91 -' &month 1.82 2.31 5.78 Japan 1.35 1.40 1.65 1-year 1.73 2.28 5.41 United Kingdom 5.00 4.84 4.92 5-year 4.39 3.72 5.02 Preferred Stocks 10-year 5.06 4.55 5.12 Utility A 6.87 6.73 6.76 . 30-year 5.47 5.43 5.44 Financial A 6.71 6.50 5.95 30-year Zero 5.75 5.63 5.49 Financial Adjustable A 4.97 4.97 4.97 TAX-EXEMPT Treasury Security Yield Curve Bond Buyer Indexes i ZO-Bond Index (Gal 5.26 5.14 5.14 25-Bond Index (Revs) 5.59 5.41 5.48 General Obligation Bonds (COO) 1-year Aaa 1.78 2.13 3.95 1-year A 1.97 2.32 4.06 5-year Aaa 3.58 3.24 4.1 5 5-year A 3.84 3.47 4.34 10-year Aaa 4.44 4.06 4.39 10-year A 4.72 4.31 4.59 25f30-year Aaa 5.24 5.07 5.16 25130-year A 5.48 5.32 5.39 Revenue Bonds (Revs) (25/3O-Year) Education AA 5.40 5.1 8 5.28 Electric AA 5.42 5.1 9 5.29 Housing AA 5.35 5.45 5.75 Ma. Yom Hospital 5.52 5.46 5.90 Toll Road Aaa 5.45 5.23 5.37

Federal Reserve Data

BANK RESERVES (Two- Week Period; in Millions, Not Seasonally Adjusted) Recent levels , Average levels Over the last... 12/26/01 12112/01 Change 12- 26wkr. 52%. Excess Reserves 1849 1343 506 1493 4055 2723 Borrowed Reserves 60 60 0 151 649 394 Net Free/Borrowed Reserves 1789 1283 506 1342 3406 2329

MONEY SUPPLY (One-Week Period; in Billions, Seasonally Adjusted) Recent Levels Growth Rates Over the Last... 12/17/01 12/10/01 Change 3 Mos. 6Mor. 12Mos. MI (Currency+demand deposits) 11 72.2 1157.9 14.3. -29.9Yo 8.7% 8.2y0 M2 (M1 +savings+small time deposits) 5467.7 5440.6 27.1 -1.2% 9.4% 10.5% M3 (MZ+large time deposits) 81 06.2 8058.4 47.8 10.0% 12.3% 14.oYo

8ZtW2, Vabalha PIIMrhinp, Im AI &fib rssemd.FacW nusriill k okhd frwnrouces bebed b be relipbls adb prpvidedwimordWanantier oloyldnd.THE Is NOT RESPONSIBLE FOR AHY ERR3RS OR OMISSIONS HEREIN. ltis pbkabm k sbk%y kr 6uhcfWa own,mmmBrCIBI, nlernal me. No put ol I( my b resold, stored or bsrumllted In any prlnled, eleclmnk of othrr lorm, of used bf generating of mafketinp any pdnld of ekbonk publmtkn, rmh 116 JANUARY 3, 2003 VALUE LINE SELECTION & OPINION PAGE 3207 Selected Yields

1 3Months Year 3MonthP Year Recent Ago Ago Recent Ago 40 (12/26/02) (9/26/02) (12/27/01] (12/26/02) (9/26/02) (12/27/01)

TAXABLE Mortgage-Backed Securities Market Rates GNMA 6.5% 4.39 4.59 6.53 Discount Rate 0.75 1.25 1.25 FHLMC 6.5% (Cold) 3.85 4.1 5 6.67 Federal Funds 1.25 1.75 1.75 FNMA 6.5% 3.67 3.98 6.60 Prime Rate 4.25 4.75 4.75 FNMA ARM 3.57 3.97 . 4.80 30-day CP (Al/Pl) 1.32 1.74 1.80 Corporate Bonds 3-month LIBOR 1.40 1.80 1.88 Financial (10-year) A 5.29 5.33 6.77 Bank CDs industrial (25/30-year) A 6.02 6.95 6.88 6-month 0.98 1.33 1.62 Utility (25/30-year) A 6.63 6.70 7.14 1-year 1.16 1.49 1.92 Utility (25/30-year) Baa/BBB 7.25 7.22 7.49 5-year 3.05 3.39 4.11 Foreign Bonds (1 0-Year) U.S. Treasury Securities Canada 4.88 4.95 ' 5.42 3-month 1.17 1.64 1.73 Germany 4.29 4.34. 4.94 6-month 1.24 1..59 1.82 Japan 0.94 1.23 1.35 1-year 1.42 1.73 1.73 United Kingdom 4.48 4.43 5.00 5-year 2.84 2.81 4.39 Preferred Stocks 10-year 3.90 3.76 5.06 Utility A 6.87 6.87 6.87 30-year 4.86 4.73 5.47 Financial A 6.41 6.56 6.71 30-year Zero 4.91 5.07 5.75 Financial Adjustable A 4.97 5.07 4.97 I TAX-EXEMPT Treasurv Securitv Yield Curve Bond Buyer Indexes 20-Bond index (COS) 4.79 4.71 5.26 25-Bond index (Revs) 5.16 5.05 5.59 General Obligation Bonds (COS) 1-year Aaa 1.20 1.45 1.76 1-year A 1.45 1.68 1.97 5-year Aaa 2.46 2.45 3.58 5-year A 2.88 2.76 3.84 10-year Aaa 3.62 3.35 4.44 10-year A , 4.06 3.70 4.72 25130-year Aaa 4.82 4.67 5.24 25/30-year A 5.08 4.90 5.48 Revenue Bonds (Revs) (25/3O-Year) -Current Education AA 4.92 4.82 5.40 Electric AA 4.86 4.67 5.42 30 Housing AA 5.15 5.00 5.35 Mol. Yean Hospital AA 5.35 5.15 5.52 Toll Road Aaa 5.06 4.80 5.45

Federal Reserve Data

BANK RESERVES (Two- Week Period; in Millions, Not Seasonally Adjusted) Recent levels Average levels Over the last... 12/24/02 12/11/02 Change 12 %. 26%. 52%. Excess Reserves 2577 1579 998 1750 1587 1483 Borrowed Reserves 57 133 -76 172 209 143 Net Free/Borrowed Reserves 2520 1446 1074 1578 1379 1340

MONEY SUPPLY (One- Week Period; in Billions, Seasonally Adjusted) Recent levels Growth Rates Over the last... 12116/02 12/9/02 Change 3 Mor. 6Mos. 12Mos. M1 (Currency+dernand deposits) 1210.3 1207.0 3.3 10.7% 4.8% 2.7% M2 (Ml+savings+srnall time deposits) 581 1.5 5808.0 3.5 8.0% 8.5% 6.4% M3 (MZ+large time deposits) 8559.9 8551.7 8.2 11.4% 10.0% 6.5%

faold, ilored or Iranrmillod In any pinled, electronic or olhw Iwm, or used br genelaling or m8rkOlinp any prinled or rbclronk publicallon, tervko or prodUcL 1 I7 JANUARY 2, 2004 VALUE LINE SELECTION & O.t;SION PAGE 2563 Selected Yields

. I. .

3Month.5 Year 3Months Year Recent Ago Ago Recent Ago 9 Ago (12/23/03) i9/25103) (12/26/02) (12/23/03) (9125103) (11/26/02)

TAXABLE Market Rates Morg+p-kdud Securities

Discount Rate 2.00 2.00 0.75 GNMA 52% 4.05 ' 4.21 ,4.39 Federal Funds 1.00 1.00 1IS FHLMC 5-?% Gld) 4.15 4.27 3.85 Prime Rate 4.00 4-00 425 FNMA 6.3 4.06 4.26 3.67 30-day CP (AlP1) 1.04 1.03 132 FNMA Am- 2.79 2.79 3.57 3-month LIBOR 1.17 1.14 1-40 c0rpor;lt sa& Bank CDs Finanda! 1:-vear) A 5.38 5.1 9 5.29 6-month 0.75 0.72 0.98 Indu- 3'30-year) A 5.86 6.00 6.02 1-year 0.98 0.83 1.16 Utility f2535-vear) A 5.75 5.97 6.63

5-year 3.05 2.89 3.05 Utility Q53Syear) BadBBB 6.27 ' 6.44 7.25 US. Treasury Securities Fore& oldr (1 0-Year) 3-month 0.89 0.93 1-17 Canada 4.68 4.62 4.88 6-month 0.99 1.01 1-14 Cerrnam 4.25 4.08 4.29 1-year 1.27 1.22 1.42 Japan 1.30 1.38 0.94 5-year 3.28 3.01 2.81 United Kim 4.78 4.59 4.48 10-year 4.26 -1.08 3.90 Preid* 30-year 5.05 4.99 4.86 Utility A 6.87 6.87 6.87 30-year Zero 5.18 5.1 7 4.91 Fins- k 5.90 5.77 6.41 Financial w-ktable A 5.45 5.46 4.97

TAX-EXEMPT Treasury Security Sield Curve &rw klexes 5.50% Bond 20-Bond huitll (COS) 4.58 4.81 4.79 25-Bond (Revs) 5.04 5.22 5.1 6 C& CliiCgtion Bonds (COS) 1-year Aaa 1.11 1.oo 1.20 1-year A 1.28 . 1.31 1.45 5-year ?az 2.37 2:28 . 2.46 5-ym A 2.69 2.70 2.88 10-year Aas 3.41 3.59 .3.62 2.50% 10-year A 3.76 4.05 4.06 25/3Q-~Aza 4.62 4.83 4.82 1 .5Ook 25/30-)ez 3 4.85 5.06 5.08 Rev- (Revs) (25130-Year) Education W 4.72 4.96 4.92 0.50% Electric A4 4.71 4.98. ' 4.86 * .3 Mus. Ytan Housing A4 4.87 5.1 5 5.15 . ' Hospital A* 5.07 5.25 5.35 Toll .Road 4.71 5.04 5.06

Federal Reserve Data

BANK RESERVES (Two- Week Period; in Millions, Not Seasonal@ -4djusted) Recent Levels Average levels Over the last... 12/1OIOf- 11/26/03 Change 12 Wks. 26wki. 52 Wks. Excess Reserves 1317 1523 -206 1467 1981 1863

Borrowed Reserves 36 56 -20 109 ' 156 101 Net Free/Borrowed Reserves 1281 1467 -1 86 1358 1825 1762 9 MONEY SUpptY (One- Week Period; in Billions. Seasonally .*jutedl Recent Levels Growth Rates Over the last... 12iai03 12/1/03 chnge 3 Mos. 6 Mos. 12 Mos. '%- ' M1 (Currency+demand deposits) 1276.8 1270.1 6.7 -0:20/. 2.6% .bJ% M2 (M1+savings+srnall time deposits) 605 1.7 6054.7 -3.0 -5.1% 0.9% 4.6% M3 (MZ+large time deposits) 8828.7 8842.8 -14.1 -5.2% 2.2% 3.6% JANUARY 16, 2004 VALUE L.INE SELECTION dr OPINION PAGE 2541 Selected Yields

TAXABLE Market Rates Mortgage-Backed Securities Discount Rate 2.00 2 .oo 2.25 GNMA 6.5% 3.95 4.34 4.1 3 ' Federal Funds 1.oo 1 -00 1.25 FHLMC 6.5% (Gold) 4.03 4.50 3.68 Prime Rate 4 .oo 4.00 4.25 FNMA 6.5% 3.98 4.43 3.56 . 3O-day CP (AlRl) 1J31 3 -03 1.27 FNMA ARM 2.66 2.91 3.40 3-month LlBOR 1.14 1.15 1.38 Corporate Bonds Bank CDs Financial (10-year) A 5.37 5.55 5.57 i-month 0.74 0.61 0.98 Industrial (25/30-year) A 5.82 6.14 5.98 1-year 0.96 0.90 1.15 Utility (25/3@year) A 5.77 6.09 7.1 6 . ,S-year 3.03 . 2.93 3.00 Utility (25I30-yearl 8aaDBB 6.28 6.60 7.37 US, Tnasury Securities Foreign Bonds (?@Year) 3-vnth 0.87 0.90 1.19 Canada 4.72 4.83 5.00 6-month 1.00 0.99 1.25 Germany 4.23 4.25 4.28 1-year 1.29 ' 1.21 1.36 Japan 1.38 1.31 0.85 ,' 5-year 3.26 3.1 7 3.18 United Kingdom 4.82 4.80 4.44 10-year 4.26 4.29 4.18 Preferred Stocks 30-year 5.09 5.21 5.07 Utility A 6.96 6.89 6.89 30-year Zero 5.24 5.38 5.10 Financial A 5.79 5.87 6.1 3 Financial Adjustable A 5.46 5.46 4.98 Treasury Security Yield Curve TAX-EXEMPT &.do% Bond Buyer Indexes 20-Bond Index (COS) 4.64 4.92 4.94 25-Bond Index (Revs) 5.03 5.34, 5.20 4.50% General Obligation Bonds (COS) 1-year Aaa 1.04 1 .oo 1.18 1-year A 1.21 1.26 1.40 3.50% 5-year Aaa 2.40 2.40 2.65 5-year A 2.72 2.73 3.05 1 0-year Aaa 3.49 3.73 3.83 2.60% 10-year A 3.83 4.14 4.29 25130-year Aaa 4.58 4.92 4.90 1 .SO% 25/30-yc!ar A 4.81 5.14 5.1 7 ""Current Revenue Bonds (Revs) (25/30-Year) Education AA 4.69 - Year-Ago 5.14 4.99 D .so% Electric AA 4.65 5.07 4.95 35 IO os. Years Housing AA 4.85 5.20 5.20 Hospital AA 5.05 5.20 5.41 Toll Road Aaa 4.69 5.12 5.1 1

Federal Reserve Data

BANK RESERVES (Two-Week Period; in Millions, Not Seasonally Adjusted) Recent levels Average Levels Over the Last... 1/7/04 12/24/03 . Change 12 Wks. 26 Wk.$. 52Wks. Excess Reserves 1602 1947 -345 1559 1977 1842 Borrowed Reserves 45 54 -9 71 140 97 Net Free/Borrowed Reserves 1557 1893 -336 1488 1836 1745 MONEY SUPPLY (One- Week Period; in Billions, Seasonally Adjusted) Recent Levels Growh Rates Over the Last... 12/29/03 12/22/03 Change 3 Mor. 6 Mos. 12Mos. MI (Currency+demand deposits) 1289.8 1288.0 1.8 -0.2% 1.0% 6.1% M2 (M1+savings+small time deposits) 6023.2 6034.3 -11.1 -5.4% -1 -7% 3.9% M3 (MZ+large time deposits) 8781.3 8791.8 -10.5 -7.3% -1.6% 2.9%