American Electric Power Company Inc. (AEP, Financial) filed Annual Report for the period ended 2010-12-31.
American Electric Power Company has a market cap of $16.86 billion; its shares were traded at around $35.11 with a P/E ratio of 11.6 and P/S ratio of 1.2. The dividend yield of American Electric Power Company stocks is 5.3%. American Electric Power Company had an annual average earning growth of 3.9% over the past 5 years.Hedge Fund Gurus that owns AEP: Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns AEP: Mario Gabelli of GAMCO Investors, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC.
As the owner of the Cook Plant, I&M has a significant future financial commitment to dispose of spent nuclear fuel and decommission and decontaminate the plant safely. The cost to decommission a nuclear plant is affected by NRC regulations and the spent nuclear fuel disposal program. In 2009, when the most recent study was done, the estimated cost of decommissioning and disposal of low-level radioactive waste for the Cook Plant ranged from $831 million to $1.5 billion in 2009 non-discounted dollars. At December 31, 2010, the total decommissioning trust fund balance for the Cook Plant was approximately $1.2 billion. The balance of funds available to decommission Cook Plant will differ based on contributions and investment returns. The ultimate cost of retiring the Cook Plant may be materially different from estimates and funding targets as a result of the:
OVEC: AEP and several unaffiliated utility companies jointly own OVEC. The aggregate equity participation of AEP in OVEC is 43.47%. Until 2001, OVEC supplied from its generating capacity the power requirements of a uranium enrichment plant near Portsmouth, Ohio owned by the DOE. The sponsoring companies are entitled to receive and are obligated to pay for all OVEC capacity (approximately 2,200 MW) in proportion to their respective power participation ratios. The aggregate power participation ratio of APCo, CSPCo, I&M and OPCo is 43.47%. The proceeds from the sale of power by OVEC are designed to be sufficient for OVEC to meet its operating expenses and fixed costs and to provide a return on its equity capital. The Inter-Company Power Agreement, which defines the rights of the owners and sets the power participation ratio of each, will expire by its terms in March 2026. Negotiations are in process among the owners to extend this agreement until 2040. AEP and the other owners have authorized environmental investments related to their ownership interests. As of December 2010, OVEC s Board of Directors has authorized capital expenditures totaling approximately $1.35 billion in connection with the engineering and construction of flue gas desulfurization projects and the associated scrubber waste disposal landfills at its two generating plants. OVEC has completed the financing of approximately $950 million for these projects through debt issuances and would expect to finance the remaining cost by issuing additional debt.
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American Electric Power Company has a market cap of $16.86 billion; its shares were traded at around $35.11 with a P/E ratio of 11.6 and P/S ratio of 1.2. The dividend yield of American Electric Power Company stocks is 5.3%. American Electric Power Company had an annual average earning growth of 3.9% over the past 5 years.Hedge Fund Gurus that owns AEP: Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns AEP: Mario Gabelli of GAMCO Investors, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
As agent for AEP s public utility subsidiaries, AEPSC sells excess power into the market and engages in power, natural gas, coal and emissions allowances risk management and trading activities focused in regions in which AEP traditionally operates and in adjacent regions. These activities primarily involve the purchase and sale of electricity (and to a lesser extent, natural gas, coal and emissions allowances) under physical forward contracts at fixed and variable prices. These contracts include physical transactions, over-the-counter swaps and exchange-traded futures and options. The majority of physical forward contracts are typically settled by netting into offsetting contracts. These transactions are executed with numerous counterparties or on exchanges. Counterparties and exchanges may require cash or cash related instruments to be deposited on these transactions as margin against open positions. As of December 31, 2010, counterparties have posted approximately $28 million in cash, cash equivalents or letters of credit with AEPSC for the benefit of AEP s public utility subsidiaries (while, as of that date, AEP s public utility subsidiaries had posted approximately $172 million with counterparties and exchanges). Since open trading contracts are valued based on market prices of various commodities, exposures change daily. See Management s Financial Discussion and Analysis, included in the 2010 Annual Reports, under the heading entitled Quantitative and Qualitative Disclosures About Risk Management Activities for additional information.As the owner of the Cook Plant, I&M has a significant future financial commitment to dispose of spent nuclear fuel and decommission and decontaminate the plant safely. The cost to decommission a nuclear plant is affected by NRC regulations and the spent nuclear fuel disposal program. In 2009, when the most recent study was done, the estimated cost of decommissioning and disposal of low-level radioactive waste for the Cook Plant ranged from $831 million to $1.5 billion in 2009 non-discounted dollars. At December 31, 2010, the total decommissioning trust fund balance for the Cook Plant was approximately $1.2 billion. The balance of funds available to decommission Cook Plant will differ based on contributions and investment returns. The ultimate cost of retiring the Cook Plant may be materially different from estimates and funding targets as a result of the:
OVEC: AEP and several unaffiliated utility companies jointly own OVEC. The aggregate equity participation of AEP in OVEC is 43.47%. Until 2001, OVEC supplied from its generating capacity the power requirements of a uranium enrichment plant near Portsmouth, Ohio owned by the DOE. The sponsoring companies are entitled to receive and are obligated to pay for all OVEC capacity (approximately 2,200 MW) in proportion to their respective power participation ratios. The aggregate power participation ratio of APCo, CSPCo, I&M and OPCo is 43.47%. The proceeds from the sale of power by OVEC are designed to be sufficient for OVEC to meet its operating expenses and fixed costs and to provide a return on its equity capital. The Inter-Company Power Agreement, which defines the rights of the owners and sets the power participation ratio of each, will expire by its terms in March 2026. Negotiations are in process among the owners to extend this agreement until 2040. AEP and the other owners have authorized environmental investments related to their ownership interests. As of December 2010, OVEC s Board of Directors has authorized capital expenditures totaling approximately $1.35 billion in connection with the engineering and construction of flue gas desulfurization projects and the associated scrubber waste disposal landfills at its two generating plants. OVEC has completed the financing of approximately $950 million for these projects through debt issuances and would expect to finance the remaining cost by issuing additional debt.
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