AEP Reports 2011 First-Quarter Earnings

American Electric Power AEP today reported 2011 first-quarter earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $353 million or $0.73 per share, compared with $344 million or $0.72 per share in first-quarter 2010. Ongoing earnings (earnings excluding special items) for the quarter were $392 million or $0.82 per share, compared with $365 million or $0.76 per share in first-quarter 2010. For the quarter, GAAP earnings were $39 million lower than ongoing earnings because of the settlement of litigation with Bank of America and Enron related to the Enron bankruptcy, resulting in a $22 million net-of-tax loss; and a $26 million net-of-tax charge related to a partial disallowance by the Public Service Commission of West Virginia of the Mountaineer Plant carbon capture and storage project. These were partially offset by a $9 million net-of-tax recovery through rates related to severance costs associated with the 2010 cost-reduction program.