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AEP Subsidiary Submits True-Up Filing in Texas.

Article Excerpt
TCC moves forward with final step in Texas electricity restructuring

COLUMBUS, Ohio, May 27 /PRNewswire-FirstCall/ -- American Electric Power subsidiary AEP Texas Central Co. (TCC) today submitted the company's true-up filing to the Public Utility Commission of Texas (PUCT) for a final determination of stranded costs and other true-up amounts as required by the Texas Electric Choice Act of 1999.

TCC is seeking approval of true-up balances of approximately $2 billion in stranded costs and associated carrying costs since the start of retail choice in 2002 and approximately $400 million in other true-up amounts including carrying costs. Stranded costs are the difference between the book value and actual market value of generation assets.

Texas Central Company True-up Balance TCC stranded costs and carrying costs* $1.984 billion Other true-up amounts Capacity auction true-up including carrying costs $ 654 million Retail clawback $ (61) million Fuel over-recovery balance $(177) million Total TCC true-up balance *carrying costs through September 2005 $2.400 billion

"We're pleased to be able to quickly move forward after completing the sale of our share of South Texas Project with the final step in our transition from regulation to deregulation in Texas. We worked very closely with the advisors and legal counsel for the PUCT throughout the process of selling all of our TCC generation to determine its market value, and we appreciate...

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