AEP reports second-quarter ongoing eps of $0.44, reaffirms 2003 ongoing guidance of $2.20 to $2.40 per share

COLUMBUS, Ohio, July 30, 2003 - American Electric Power (NYSE: AEP) today reported 2003 second-quarter ongoing earnings of $0.44 per share and remains on target to meet its earnings guidance for 2003 despite unfavorable weather that reduced electricity demand. Ongoing earnings for second-quarter 2002 were $0.56 per share.

The second-quarter 2003 per-share results reflect the dilutive effect of additional shares outstanding, which reduced ongoing earnings by $0.09 per share when compared to the prior period. Comparisons with the prior period also are affected by the sale of SEEBOARD in the UK, which added $25 million, or $0.08 per share, to ongoing earnings in last year’s second quarter before being divested in July 2002. Weather adversely affected ongoing earnings $0.06 per share year-to-year for the quarter.

“Our ongoing earnings for the first six months of 2003 are $1.05 per share, including a $0.14 per share dilutive effect of additional shares outstanding in the period. This has us on pace for 2003 ongoing earnings in the $2.20 to $2.40 per share range, as we anticipated prior to the start of the year,” said E. Linn Draper Jr., AEP’s chairman, president and chief executive officer.

Results were:

Second quarter ended June 30 Six months ended June 30
20022003Variance 20022003Variance
Revenue ($ in billions)
Earnings ($ in millions):
Ongoing181.6174.9(6.7) 371.0393.122.1
As reported61.9175.3113.4 (107.0) 615.4722.4
EPS ($):
Ongoing0.560.44(0.12) 1.151.05(0.10)
As reported0.190.440.25 (0.33)1.641.97

Ongoing and as-reported EPS for second-quarter 2003 are based on an average of approximately 395 million shares outstanding, compared to an average of approximately 326 million shares outstanding for the same period in 2002. Year-to-date 2003 ongoing and as-reported EPS are based on an average of approximately 376 million shares outstanding, compared to an average 324 million shares outstanding for the same period in 2002.

AEP’s as-reported earnings are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and represent the company’s earnings as reported to the Securities and Exchange Commission. AEP’s management believes that the company’s ongoing earnings data, or as-reported earnings adjusted for certain items as described in the news release and charts, provides a more meaningful representation of the company’s performance. AEP uses ongoing earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings outlook and results. The company also uses ongoing earnings data internally to measure performance against budget and to report to AEP’s board of directors.

The one item excluded from second-quarter 2003 ongoing earnings is a $433,326 nonrecurring gain on the disposition of Nordic trading operations. A full reconciliation of items contributing to the difference between ongoing and as-reported earnings for this period and comparable prior periods is included in the charts at the end of this news release.

($ in millions except per share data; EPS based on 326mm shares in 2002, 395mm shares in 2003)
Q2 2002EPS Q2 2003EPS
Utility operations2370.732250.57
Parent company(8) (0.03)(3) (0.01)

Weather, the economy and outages at AEP’s Donald C. Cook Nuclear Plant and the partially owned South Texas Project Nuclear Plant were key factors in the performance of AEP’s utility operations.

“The Midwest weather was extraordinarily mild in the second quarter, with average temperatures well below normal and significantly below last year,” Draper said. “This reduced residential demand. Temperatures in our western states were a bit above normal, but still below last year.

“We’re also seeing continued pressure on industrial demand, evidence of a slower-than-expected economic recovery. Industrial load was down almost 5 percent from last year’s second quarter, continuing a decline that began in 2001,” Draper said.

The Cook plant was forced out of service in late April because of a massive influx of fish in the plant’s cooling water system. Unit 1 returned to service in late May, but Unit 2 continued into a planned 35-day refueling outage and returned to service June 20. South Texas Project’s Unit 1 was taken out of service in mid-April when a small quantity of boric acid residue was found inside the Unit 1 reactor containment building. South Texas Project Nuclear Operating Co., the plant’s manager, completed repairs in early July and is seeking approval from the Nuclear Regulatory Commission for a late summer restart. AEP owns 25.2 percent of South Texas Project. The outages at the two nuclear plants resulted in higher fuel and purchased power costs in the quarter for AEP.

“While the quarter and year-to-date results from utility operations, our core businesses, and from investments are within our expectations, losses from investments continue to reduce earnings,” Draper said. “We did see some improvements in the second quarter, specifically in our operations in the United Kingdom, but this hasn’t altered our plan to divest non-core assets.”

In January, AEP said it would divest non-core assets and focus on the core utility businesses. AEP has selected advisors to assist with developing a plan of divestiture for its Louisiana Intrastate Gas holdings, coal mines and independent power plants (IPPs). The company sold one of its IPPs, the 85-megawatt Newgulf plant in Texas, in May for $7 million. AEP continues to review options for other non-core assets.

($ in millions except per share data; EPS based on 326mm shares in 2002, 395mm shares in 2003)

Q2 2002

Q2 2003


Retail Margin - Regulated Integrated Utilities




Ohio Companies




Texas Wires




Texas Supply/REP




FERC Municipal and Co-op Customers




System Sales




Other Wholesale Transactions




Transmission Revenue - 3rd Party




Other Operating Revenue




Total Gross Margin




Operations & Maintenance




Depreciation & Amortization




Taxes Other Than Federal Income Taxes




Capital Cost and Other




Federal Income Taxes




Ongoing Net Earnings Utility Operations




Ongoing Earnings Per Share




The impact of weather, the continued weak economy and costs associated with the Cook outage were primary factors in reduced earnings from regulated integrated utilities.

The Ohio companies also recorded lower demand, again attributable to mild weather and the economy, which reduced earnings.

The gain in earnings from Texas wires is primarily attributed to $52.4 million in non-cash earnings associated with stranded cost recovery in Texas, which reflects the difference between the actual price received from the state-mandated auction of 15 percent of generation capacity and the earlier estimate of market prices derived from the Public Utility Commission of Texas (PUCT) model. It has been established as a regulatory asset that is recoverable through the 2004 true-up process established by deregulation laws in Texas. In 2002, these non-cash earnings were not recorded until the fourth quarter.

The decline in earnings from Texas supply reflects the South Texas Project outage, higher fuel costs and a separate provision for the potential disallowance by the PUCT of fuel expenses. The Texas supply results include the gross margin for output of generating units in the Electric Reliability Council of Texas (ERCOT) and from “reliability must run” (RMR) contracts with ERCOT for generating units scheduled to be mothballed by AEP. The 2002 results also included margins from two retail electricity providers that were sold to Centrica in December 2002.

Earnings from FERC municipal and co-op customers, system sales and third-party transmission were essentially flat from period to period.

The transition electric trading book, associated with AEP’s decision to exit from markets where it doesn’t own assets, is included in other wholesale transactions. The 2003 results, which reflect AEP’s “flattened” positions in those markets, are compared to gains in second-quarter 2002 when AEP was an active participant.

$ in millions except per share data; EPS based on 326mm shares in 2002, 395mm shares in 2003)

Q2 2002

Q2 2003


AEP Energy Services, includes Gas HoldCo (HPL & LIG)








AEP Coal




UK Generation, includes European and Nordic Trading net earnings




Independent Power Plants and Wind Farms




AEP Resources - Other




SEEBOARD (sale closed 7/29/2002)




CitiPower (sale closed 8/30/2002)




AEP Communications




CSW International








Ongoing Total Investments




Ongoing Earnings Per Share




A profitable quarter by UK generation and reduced losses in other areas helped AEP offset the prior-period earnings contribution from SEEBOARD, a UK regional electric company sold by AEP in July 2002.

“The improved performance by our UK operations was driven primarily by a strong quarter from our coal and freight procurement group and reduced interest expense, as the debt associated with the UK plants was retired in early April,” Draper said. “We have seen better mid-term power prices, but significant liquidity issues in the UK market and the uncertain environmental regulations are still concerns, so we expect this market to remain a difficult one in the foreseeable future.”

AEP Energy Services, which includes the company’s gas business, experienced a $24 million loss for the quarter as compared to a loss of $32 million during the comparable period in 2002.

American Electric Power owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

American Electric Power’s quarterly earnings conference call with financial analysts will be broadcast live over the Internet at 9:30 a.m. EDT today. Audio will be available at http://www.firstcallevents.com/service/ajwz384686832gf12.html or http://www.aep.com/go/webcasts.

The call will be archived on http://www.aep.com for use by those unable to listen during the live webcast.

Minimum requirements to listen to broadcast: The Windows Media Player software, free from http://www.microsoft.com/windows/windowsmedia/EN/default.asp, and at least a 28.8Kbps connection to the Internet. If you experience problems listening to the broadcast, send an e-mail to webcastsupport@tfprn.com.

-Financial Results for 2nd Quarter 2003 Actual vs 2nd Quarter 2002 Actual: Also see the printer-friendly version (PDF: 5KB: get viewer)

-Summary of Selected Sales Data For Domestic and Trading Operations (Data based on preliminary, unaudited results) 3 Months Ended June 30: Also see the printer-friendly version (PDF: 14KB: get viewer)

-Financial Results for 2nd Quarter 2003 Actual vs 2nd Quarter 2002 Actual: Also see the printer-friendly version (PDF: 8KB: get viewer)

-Financial Results for June 2003 YTD Actual vs June 2002 YTD Actual: Also see the printer-friendly version (PDF: 8KB: get viewer)

-Financial Results for June 2003 YTD Actual vs June 2002 YTD Actual: Also see the printer-friendly version (PDF: 7KB: get viewer)

-Summary of Selected Sales Data For Domestic and Trading Operations (Data based on preliminary, unaudited results) 6 Months Ended June 30: Also see the printer-friendly version (PDF: 9KB: get viewer)

The comments set forth above include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including (1) statements concerning the Company´s plans, objectives, expected performance and expenditures and (2) other statements that are other than statements of historical fact. These forward-looking statements reflect assumptions, and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from forward-looking statements are electric load and customer growth, abnormal weather conditions, availability of generating capacity, the ability to recover net regulatory assets and other stranded costs in connection with deregulation of generation, the outcome of environmental regulation and litigation, the impact of fluctuation in commodity prices and interest rates, and other risks and unforeseen events over which the Company has no control. The reader is also directed to the Company´s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company´s results of operations and financial condition. Furthermore, historical results may not be indicative of the Company´s future performance.

Melissa McHenry
Manager, Corporate Media Relations

Bette Jo Rozsa
Managing Director, Investor Relations

More From PSO

Learn More

Manage Your Electric Bill Year-Round

Sign Up Now Pay Online for Free with Paperless Billing

Pay Online for Free with Paperless Billing

Use Online Form Report Outages On Your Mobile Phone

Report Outages On Your Mobile Phone

How We Restore Power Learn more

How We Restore Power

Visit AEP.com
Use of this site constitutes acceptance of the AEP Terms and Conditions. View our Privacy Policy. © 1996-2019 American Electric Power. All Rights Reserved.

Privacy Policy

Privacy Policy for Public Service Company of Oklahoma (PSO), a unit of American Electric Power (AEP)


This Privacy Policy applies only to PSOklahoma.com and the Public Service Company of Oklahoma customer mobile app (com.aep.customerapp.pso). Other AEP websites and apps may be governed by their own privacy policies, appropriate to the uses and needs of each. Throughout the site or app, we may provide links to resources and sites that are not part of PSOklahoma.com or the Public Service Company of Oklahoma customer mobile app. This Privacy Policy does not apply to those resources and sites.


By using this site or app, you consent to the terms of this Privacy Policy. Whenever you submit information via this site or app, you agree to the collection, use, and disclosure of that information in accordance with this Privacy Policy.

Information Collected

  1. Passively collected information

    During your use of this site or app, we may collect anonymous information about your visit here through the use of server logs, cookies, scripts, tracking pixels and other Web traffic tracking systems. This information is aggregated and used to improve user experience through analysis of user activities. This information is never combined with any of the personally identifiable information you may provide in your use of the features of this site or app.
  2. Personally identifiable information

    On certain forms of this site or app, you may be asked to provide information about yourself or your account with us, either to identify yourself to us or to request a service from us. In each case, we will inform you what information is provided at your option and what information is required to complete the transaction or activity you are engaged in. If you are unwilling to provide this required information, you will be unable to complete the requested transaction.

Use and disclosure of information

The information you provide to us will be used to respond to requests you may make for services. Some or all of this information may be added to your permanent account record and may be used for research purposes.

In addition, we may use elements of this information in the following situations:

  1. We may transfer the information to PSO’s affiliates and subsidiaries, unless such transfer is prohibited by law;
  2. We may transfer the information as part of a merger, consolidation, acquisition, divestiture or other corporate restructuring (including bankruptcy);
  3. We may make the information available to third parties who are providing the product, service or information that you have requested (but not your password);
  4. We may make such information available to third parties who are providing services to PSO (for example, providing the information to third parties performing computer-related services for PSO);
  5. We may use the information to communicate with you about products and services that may be of interest to you.
  6. We may disclose the information if we form a good-faith belief that disclosure of such information is necessary to investigate, prevent, or take action regarding any illegal activities or regarding interference with the operation of our site or violation of its terms of use; or
  7. We may disclose the information if we believe that disclosure is required by law or regulation or in response to a subpoena or other order of a court or other governmental agency.

PSO uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

Also, PSO reserves the right to share any aggregated information (i.e., non-personally identifiable information) with any third parties for any reason, unless prohibited by law.

We will not sell, rent or otherwise disclose the information we gather about you or your account to any third party, except as outlined in this Privacy Policy.


PSO takes reasonable steps to protect your personally identifiable information as it is transferred to us, through the use of Web technologies such as the Secure Sockets Layer and others. However, no Internet transmission of information is ever completely secure or error-free. In particular, e-mail sent to or from PSO may not be secure.

How to Reach Us

If you would like to update your personally identifiable information or if you have questions about this privacy policy, please contact us.

Changes to This Policy

PSO reserves the right to change this Privacy Policy at any time. If this Privacy Policy changes, the revised policy will be posted to this site. Please review this Privacy Policy before you provide any personally identifiable information through this site. Use of our web site after the posting of a revised privacy policy constitutes your consent to the revised policy.

This policy was last revised on December 13, 2017.

Close ×

Sign Up For Alerts

Subscribing to PSO alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Win an Xbox One with Alerts!

Enroll in alerts to be eligible to win. Subscribing to I&M alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Loading video...