April 18, 2014 2:20 AM ET

Electric Utilities

Company Overview of Appalachian Power Company

Company Overview

Appalachian Power Company engages in the generation, transmission, and distribution of electric power. It serves approximately 960,000 retail customers in the southwestern portion of Virginia and southern West Virginia. The company is also involved in supplying and marketing electric power at wholesale to other electric utility companies, municipalities, and other market participants. It principally serves paper, rubber, coal mining, and textile mill products, as well as stone, clay, and glass products industries. The company was founded in 1926 and is based in Columbus, Ohio. Appalachian Power Company is a subsidiary of American Electric Power Company, Inc.

1 Riverside Plaza

Columbus, OH 43215

United States

Founded in 1926

Phone:

614-716-1000

Fax:

614-716-1823

Key Executives for Appalachian Power Company

Chief Executive Officer
Age: 53
Chief Financial Officer
Age: 45
Chief Operating Officer
Age: 53
Chief Accounting Officer
Executive Vice President
Age: 66
Compensation as of Fiscal Year 2013.

Appalachian Power Company Key Developments

American Electric Power Co., Inc. and Subsidiaries Enters into $1,000 Million Term Credit Agreement

On July 17, 2013, American Electric Power Company, Inc.(AEP) terminated its $1,000,000,000 Twenty-Seven Month Term Credit Agreement, dated February 13, 2013, among AEP, the Initial Lenders named therein, and Wells Fargo Bank, National Association, as Administrative Agent, and was replaced with the credit agreement. On July 17, 2013, AEP, Appalachian Power Company (APCo), AEP Generation Resources Inc. (AGR), Kentucky Power Company (KPCo) and Ohio Power Company (OPCo) entered into a $1,000,000,000 Term Credit Agreement, dated as of July 17, 2013 among, APCo, AGR, KPCo and OPCo, severally and not jointly, as Borrowers AEP, as Guarantor of AGR, the Initial Lenders named therein, and Wells Fargo Bank, National Association, as Administrative Agent. This is a replacement Credit Agreement entered into to provide additional liquidity during the corporate separation process for OPCo. OPCo may assign borrowings under the Credit Agreement to AGR upon the transfer of OPCo's generation assets to AGR. Subject to regulatory approval, AGR may further assign a portion of the borrowings to APCo and KPCo upon AGR's subsequent transfer of certain of those generation assets to APCo and KPCo. Borrowings by OPCo under the Credit Agreements are available and will occur upon customary terms and conditions for facilities of this type. The Credit Agreement contains certain covenants and require AEP and each Borrower to maintain its percentage of debt to total capitalization at a level that does not exceed 67.5%. The method for calculating outstanding debt and other capital is contractually defined in the Credit Agreement. Nonperformance of these covenants could result in an event of default under the Credit Agreement. The acceleration of payment obligations or the obligations prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $50 million would cause an event of default under the Credit Agreement and permit the lenders to declare outstanding amounts payable. The Credit Agreement does not permit the lenders to refuse a draw on the facility if a material adverse change occurs.

Appalachian Power Company Files Request with Virginia State Corporation Commission to Build an Electric Transmission Project in Wythe County Area

Appalachian Power Company filed a request with the Virginia State Corporation Commission to build an electric transmission project in the Wythe County area. The company introduced the Wythe Area Improvements Project in May. Following extensive public comment, Appalachian developed a preferred and a viable alternative route for the new line. This filing begins a state-level review. The project is proposed to address voltage problems that could develop by 2015. To address the problem, Appalachian proposes construction of a 138 kilovolt (kV) transmission line connecting Jacksons Ferry Substation and the existing Wythe Substation in Wytheville. The company's preferred route for the project is approximately 17.5 miles long. It originates at Jacksons Ferry Substation, near the New River Trail State Park, crosses the New River and continues northward, generally paralleling I-77, crossing it near Fort Chiswell before turning west towards the existing Progress Park Substation, with one circuit entering that substation, and the other circuit continuing to the southwest to terminate at Wythe Substation. The company's recommended preferred route has the least disturbance overall to people and the environment. For much of the route, it parallels existing infrastructure such as power lines, a gas pipeline and Interstate 77. If approved along the preferred route, the project would require construction of approximately 100 transmission structures built on a 100-foot-wide right of way. The company will work with the property owners to define the best location for the power line and to resolve any relocation or acquisition issues. Although the Appalachian only proposes construction of one route, the company also identified its second most favorable route and is submitting it to the SCC for consideration along with the preferred route. The viable alternative is approximately 20 miles long. It exits Jacksons Ferry Substation and crosses the New River on the same path as the preferred. After crossing the New River, the route turns west, crossing I-77, U.S. Route 52 and State Route 94 before turning to the northwest to parallel an existing transmission line running towards Wytheville. Just south of Wytheville, one circuit extends northeast to Progress Park east of Wytheville, and one circuit continues north into the Wythe Substation in Wytheville.

The U.S. District Court Declines to Grant Class Certification in Customers' Lawsuit Against Appalachian Power Company

The U.S. District Court for the Southern District of West Virginia declined to grant class certification in customer's lawsuit for damages arising out of a storm that caused power outages throughout the state. Individual issues as to causation and damages would overwhelm common issues. On two consecutive days in December 2009, a winter storm occurred that caused massive electrical outages in West Virginia. Several individuals who lost power during the storm filed a class action complaint against Appalachian Power Company and other defendants (collectively, APC). The complaint alleged that APC's negligent maintenance of its transmission and distribution lines resulted in more widespread power outages than otherwise would have occurred. Specifically, the complaint alleged that APC failed to clear vegetation and trees around power lines. The plaintiffs requested certification of the case as a class action. The district court found that the typicality requirement was not met. The claims of absent class members would not be resolved with resolution of the plaintiff's claims. The facts that established causation varied for each class member. The issue of damages was not common among the plaintiffs and putative class members. Approximately 200,000 people lost power during the relevant period. Each person could potentially have incurred different injuries from the storm. The district court observed that a power outage cannot be viewed as a single event that results from a single cause. A separate analysis into each class member's circumstances would be required to determine whether APC's alleged negligence caused a particular class member's damages.

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