3Q13 Earnings Release Presentation

October 23, 2013

2

“Safe Harbor” Statement under the Private

Securities Litigation Reform Act of 1995

Investor Relations Contacts

Bette Jo Rozsa

Managing Director

Investor Relations

614-716-2840

bjrozsa@aep.com

Julie Sherwood

Director

Investor Relations

614-716-2663

jasherwood@aep.com

Sara Macioch

Analyst

Investor Relations

614-716-2835

semacioch@aep.com

This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its

Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual

outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-

looking statements are: the economic climate and growth or contraction within and changes in market demand and demographic patterns in our service territory,

inflationary or deflationary interest rate trends, volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and

developments impairing our ability to finance new capital projects and refinance existing debt at attractive rates, the availability and cost of funds to finance working

capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material, electric load, customer

growth and the impact of retail competition, particularly in Ohio, weather conditions, including storms and drought conditions, and our ability to recover significant storm

restoration costs through applicable rate mechanisms, available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel

suppliers and transporters, availability of necessary generating capacity and the performance of our generating plants, our ability to recover increases in fuel and other

energy costs through regulated or competitive electric rates, our ability to build or acquire generating capacity, and transmission line facilities (including our ability to

obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are

cancelled) through applicable rate cases or competitive rates, new legislation, litigation and government regulation including oversight of nuclear generation, energy

commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances or

additional regulation of fly ash and similar combustion products that could impact the continued operation and cost recovery of our plants and related assets, evolving

public perception of the risks associated with fuels used before, during and after the generation of electricity, including nuclear fuel, a reduction in the federal statutory tax

rate could result in an accelerated return of deferred federal income taxes to customers, timing and resolution of pending and future rate cases, negotiations and other

regulatory decisions including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance, resolution of

litigation, our ability to constrain operation and maintenance costs, our ability to develop and execute a strategy based on a view regarding prices of electricity and other

energy-related commodities, prices and demand for power that we generate and sell at wholesale, changes in technology, particularly with respect to new, developing or

alternative sources of generation, our ability to recover through rates or market prices any remaining unrecovered investment in generating units that may be retired

before the end of their previously projected useful lives, volatility and changes in markets for capacity and electricity, coal, and other energy-related commodities,

particularly changes in the price of natural gas, changes in utility regulation and the allocation of costs within regional transmission organizations, including PJM and SPP,

the transition to market and the legal separation of generation in Ohio, including the implementation of ESPs and the successful approval, where applicable, and transfer

of such Ohio generation assets and liabilities to regulated and non-regulated entities at book value, our ability to successfully manage negotiations with stakeholders and

obtain regulatory approval to terminate the Interconnection Agreement, changes in the creditworthiness of the counterparties with whom we have contractual

arrangements, including participants in the energy trading market, actions of rating agencies, including changes in the ratings of our debt, the impact of volatility in the

capital markets on the value of the investments held by our pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and

the impact on future funding requirements, accounting pronouncements periodically issued by accounting standard-setting bodies and other risks and unforeseen events,

including wars, the effects of terrorism (including increased security costs), embargoes, cyber security threats and other catastrophic events.

3

Company Highlights

$1.00 $1.02

$0.89

$1.10

GAAP EPS OPERATING EPS

2012

2013

Refer to appendix for reconciliations between GAAP and Operating EPS

3rd Quarter

YTD

$2.55

$2.59

$2.33

$2.63

GAAP EPS OPERATING EPS

2012

2013

Earnings Update Delivered GAAP and operating earnings of $0.89 and

$1.10 per share, respectively, for the third quarter and

$2.33 and $2.63 per share, respectively, for the nine

month YTD period

Narrowing 2013 operating earnings range to $3.15 -

$3.25 per share

Dividend Increase Board declared dividend of $0.50/share

Increase of $0.01 or 2%; 3.72% annual

Regulatory Update

Kentucky Asset Transfer Order

West Virginia Asset Transfer

SWEPCO Texas Rate Case Order

Financial Update

Committed to delivering 4-6% earnings growth off of

2013 original guidance

Continuous improvement initiatives

Twelve Months Ended 09/30/13 Pro-forma* Earned ROEs

* pro-forma adjusts GAAP results by eliminating any material nonrecurring items and is not weather normalized

Delivered Strong Regulated Results

4

Regulated operations ROE of 10.3% as of September, 2013

(AEP Trans HoldCo)

5

3Q13 and YTD Performance

Operating Operating

Earnings Earnings

EPS ($ in millions) EPS ($ in millions)

2012 1.02$ 496$ 2.59$ 1,255$

Ohio Transition Items (0.03) (0.24)

Effective Tax Rate (0.04) (0.09)

AFUDC (0.02) (0.07)

Off-System Sales (0.02) (0.04)

AEP River Operations - (0.04)

Regulated Retail Load - (0.02)

Weather (0.08) (0.01)

O&M, net of offsets 0.06 (0.01)

Transmission Operations 0.01 0.05

Interest Income - 0.06

Other 0.05 0.09

Rate Changes 0.15 0.36

2013 1.10$ 533$ 2.63$ 1,277$

Third Quarter September YTD

Refer to appendix for explanation of variances

Narrowing 2013 operating earnings guidance to $3.15-$3.25 per share

6 Earnings impact neutral for quarter; unfavorable by $0.02 YTD

-0.5% -1.1%

1.3%

-0.1%

-1.8%

-0.2%

-5%

0%

5%

3Q12 4Q12 1Q13 2Q13 3Q13 YTD13

Normalized Load Trends

0.1%

-0.4%

0.5%

-2.1%

1.3%

-0.1%

-5%

0%

5%

3Q12 4Q12 1Q13 2Q13 3Q13 YTD13

-3.1% -4.2%

-6.0% -5.3%

-3.9%

-5.1%

-10%

-5%

0%

5%

3Q12 4Q12 1Q13 2Q13 3Q13 YTD13

-1.2% -2.0%

-1.5%

-2.7% -1.5% -1.9%

-5%

0%

5%

3Q12 4Q12 1Q13 2Q13 3Q13 YTD13

AEP Residential Normalized GWh Sales

%Change vs. Prior Year

AEP Commercial Normalized GWh Sales

%Change vs. Prior Year

AEP Industrial Normalized GWh Sales

%Change vs. Prior Year

AEP Total Normalized GWh Sales

%Change vs. Prior Year

Note: Charts reflect connected load and exclude firm wholesale load & Buckeye Power backup load.

7

Industrial Sales Volumes

Industrial sales headwinds

8

Liquidity Summary

(unaudited) Actual

($ in millions) Amount Maturity

Revolving Credit Facility 1,750$ Jul-17

Revolving Credit Facility 1,750 Jun-16

Term Credit Facility 1,000 May-15

Total Credit Facilities 4,500

Plus

Cash & Cash Equivalents 147

Less

Commercial Paper Outstanding (518)

Amount drawn on bank loans (600)

Letters of credit issued (185)

Net available Liquidity 3,344$

Capitalization & Liquidity

Liquidity Summary (09/30/2013)

Credit Statistics

Note: Credit statistics represent the trailing 12 months as of 09/30/2013

Strong balance sheet, solid credit metrics and adequate liquidity

Total Debt / Total Capitalization

74%

82%

88% 92%

94% 97% 98%

70%

80%

90%

100%

2009 2010 2011 2012 1Q13 2Q13 3Q13

Qualified Pension Liability Funding

Actual Target

FFO Interest Coverage 4.6 >3.6x

FFO To Total Debt 19.7% 15%- 20%

9

EEI Financial Conference Expectations

Support 4-6% earnings growth rate

Continuous Improvement Plan

Transmission growth opportunities

AEP Generation Resources detail

Detail growth in Regulated Utility Operations

10

Appendix

11

3Q13 Performance Drivers Third Quarter Reconciliation

3Q13 Performance

Weather was unfavorable by $60M vs. prior

year, unfavorable $10M vs. normal

Effective tax rate of 36.3% in 3Q2013 vs. 32.9%

in 3Q2012

Ohio transition items include reduced CRES

capacity reimbursements

AFUDC unfavorable $17M primarily due to Turk

plant in service December 2012

Transmission Operations favorable $8M

Other favorable primarily due to decreased

interest and depreciation expense

O&M expense, net of offsets, decreased $44M

primarily due to employee related expenses

Rate Changes, net of offsets, of $114M from

multiple jurisdictions

Operating

Earnings

EPS ($ in millions)

3Q12 1.02$ $496Weather (0.08)$ Effective Tax Rate (0.04)$ Ohio Transition Items (0.03)$ AFUDC (0.02)$ Off-System Sales (0.02)$ Transmission Operations 0.01$ Other 0.05$ O&M, net of offsets 0.06$ Rate Changes 0.15$

3Q13 1.10$ $533EPS Based on 487MM shares in 3Q13, 485MM in 3Q12

12

YTD 2013 Performance Drivers September YTD Reconciliation

September YTD 2013 Performance

Ohio transition items include reduced CRES capacity

reimbursements, prior year reversal of a fuel

provision, prior year reversal of a regulatory

obligation and customer switching and capacity

deferral. As of September 2013, 58% of total Ohio

load switched

Effective tax rate of 35.9% in 2013 vs. 32.9% in 2012

AFUDC unfavorable $57M primarily due to Turk plant

in service December 2012

AEP River Operations unfavorable due to reduced

grain and coal exports and water conditions

Regulated retail load down $18M

O&M expense net of offsets increased $10M

primarily due to increased storm restoration

expenses

Weather was unfavorable by $9M vs. prior year,

favorable $18M vs. normal

Transmission Operations favorable $22M

Favorable interest income $48M

Other favorable primarily due to decreased interest

expense

Rate Changes net of offsets of $270M from multiple

operating jurisdictions

Operating

Earnings

EPS ($ in millions)

2012 2.59$ $1,255

Ohio Transition Items (0.24)$

Effective Tax Rate (0.09)$

AFUDC (0.07)$

AEP River Operations (0.04)$

Off-System Sales (0.04)$

Regulated Retail Load (0.02)$

O&M, net of offsets (0.01)$

Weather (0.01)$

Transmission Operations 0.05$

Interest Income 0.06$

Other 0.09$

Rate Changes 0.36$

2013 2.63$ $1,277EPS Based on 486MM shares in YTD13, 484MM in YTD12

13

Reconciliation of GAAP to Operating Earnings

3rd Qtr 3rd Qtr 3rd Qtr 3rd Qtr

2012 2013 Change 2012 2013 Change

Reported Earnings (GAAP) 487$ 433$ (54)$ 1.00$ 0.89$ (0.11)$

Special Items:

Turk Plant Impairment 9 79 70 0.02 0.17 0.15

Big Sandy FGD Impairment - 21 21 - 0.04 0.04

AEP Operating Earnings 496 533 37 1.02 1.10 0.08

$ millions Earnings Per Share

YTD Sept YTD Sept YTD Sept YTD Sept

2012 2013 Change 2012 2013 Change

Reported Earnings (GAAP) 1,238$ 1,134$ (104)$ 2.55$ 2.33$ (0.22)$

Special Items:

Turk Plant Impairment 9 79 70 0.02 0.17 0.15

Restructuring Program 8 5 (3) 0.02 0.01 (0.01)

Reversal of Storm Deferral - Virginia - 19 19 - 0.04 0.04

UK Windfall Taxes - (80) (80) - (0.16) (0.16)

Muskingum River Plant Unit 5 Impairment - 99 99 - 0.20 0.20

Big Sandy FGD Impairment - 21 21 - 0.04 0.04

AEP Operating Earnings 1,255 1,277 22 2.59 2.63 0.04

$ millions Earnings Per Share

14

Quarterly Performance Comparison

2012 GAAP 2012 Operating 2013 GAAP 2013 Operating

2012 Volumes Earnings Adjustments Earnings 2013 Volumes Earnings Adjustments Earnings

(GWh) ($ millions) ($ millions) ($ millions) (GWh) ($ millions) ($ millions) ($ millions)

UTILITY OPERATIONS:

Gross Margin:

1 East Regulated Integrated Utilities 16,847 766 - 766 16,311 774 - 774

2 Ohio Companies 13,327 666 - 666 11,958 644 - 644

3 West Regulated Integrated Utilities 12,744 450 - 450 12,360 481 - 481

4 Texas Wires 8,650 183 - 183 8,439 186 - 186

5 Off-System Sales 91 - 91 69 - 69

6 Transmission Revenue - 3rd Party 129 - 129 158 - 158

7 Other Operating Revenue 153 - 153 139 - 139

8 Utility Gross Margin 2,438 - 2,438 2,451 - 2,451

9 Operations & Maintenance (860) - (860) (802) - (802)

10 Depreciation & Amortization (458) - (458) (433) - (433)

11 Taxes Other than Income Taxes (219) - (219) (222) - (222)

12 Interest Exp & Preferred Dividend (221) - (221) (217) - (217)

13 Other Income & Deductions 21 13 34 (123) 144 21

14 Income Taxes (231) (4) (235) (246) (44) (290)

15 Utility Operations Earnings 470 9 479 408 100 508

16 Transmission Operations 14 - 14 22 - 22

NON-UTILITY OPERATIONS:

17 AEP River Operations (1) - (1) (1) - (1)

18 Generation & Marketing 10 - 10 4 - 4

PARENT & OTHER:

19 Parent & Other Earnings (6) - (6) - - -

20 EARNINGS 487 9 496 433 100 533

Weighted average no. of shares outstanding: EPS EPS EPS EPS

2012: 485 million 1.00 1.02 0.89 1.10

2013: 487 million

American Electric Power

Financial Results for 3rd Quarter 2013 Actual vs 3rd Quarter 2012 Actual

15

YTD Performance Comparison

2012 GAAP 2012 Operating 2013 GAAP 2013 Operating

2012 Volumes Earnings Adjustments Earnings 2013 Volumes Earnings Adjustments Earnings

(GWh) ($ millions) ($ millions) ($ millions) (GWh) ($ millions) ($ millions) ($ millions)

UTILITY OPERATIONS:

Gross Margin:

1 East Regulated Integrated Utilities 49,340 2,240 - 2,240 49,456 2,355 - 2,355

2 Ohio Companies 38,638 1,852 - 1,852 35,099 1,827 - 1,827

3 West Regulated Integrated Utilities 32,906 1,105 - 1,105 32,111 1,156 - 1,156

4 Texas Wires 22,614 493 - 493 21,988 499 - 499

5 Off-System Sales 274 - 274 176 - 176

6 Transmission Revenue - 3rd Party 366 - 366 430 - 430

7 Other Operating Revenue 386 - 386 396 - 396

8 Utility Gross Margin 6,716 - 6,716 6,839 - 6,839

9 Operations & Maintenance (2,386) 13 (2,373) (2,495) 37 (2,458)

10 Depreciation & Amortization (1,318) - (1,318) (1,268) - (1,268)

11 Taxes Other than Income Taxes (632) - (632) (644) - (644)

12 Interest Exp & Preferred Dividend (662) - (662) (664) - (664)

13 Other Income & Deductions 95 13 108 (230) 298 68

14 Income Taxes (596) (9) (605) (561) (112) (673)

15 Utility Operations Earnings 1,217 17 1,234 977 223 1,200

16 Transmission Operations 31 - 31 53 - 53

NON-UTILITY OPERATIONS:

17 AEP River Operations 11 - 11 (12) - (12)

18 Generation & Marketing 4 - 4 15 - 15

PARENT & OTHER:

19 Parent & Other Earnings (25) - (25) 101 (80) 21

20 EARNINGS 1,238 17 1,255 1,134 143 1,277

Weighted average no. of shares outstanding: EPS EPS EPS EPS

2012: 484 million 2.55 2.59 2.33 2.63

2013: 486 million

American Electric Power

Financial Results for YTD September 2013 Actual vs YTD September 2012 Actual

16

Retail Rate Performance

Rate Changes, net of

trackers (in millions)

Rate Changes, net of

trackers (in millions)

3Q13 vs. 3Q12 YTD13 vs. YTD12

East Regulated

Integrated Utilities $23

East Regulated

Integrated

Utilities

$70

Ohio Companies $29 Ohio Companies $95

West Regulated

Integrated Utilities $62

West Regulated

Integrated

Utilities

$106

Texas Wires $0 Texas Wires $0

AEP System Total $114 AEP System Total $270

Impact on EPS Impact on EPS

May not foot due to rounding

$0.15 $0.36

17

Retail Load Performance

Retail Load*

(weather normalized)

Retail Load*

(weather normalized)

3Q13 vs. 3Q12 YTD13 vs. YTD12

East Regulated

Integrated Utilities (0.6%)

East Regulated

Integrated

Utilities

(0.8%)

Ohio Companies (4.7%) Ohio Companies (4.6%)

West Regulated

Integrated Utilities (0.4%)

West Regulated

Integrated

Utilities

(1.1%)

Texas Wires 0.1% Texas Wires (0.8%)

Impact on EPS $0.00 Impact on EPS

*Excludes Firm Wholesale Load

$0.02

18

Weather Impact

Weather Impact

(in millions)

Weather Impact

(in millions)

3Q13 vs. 3Q12 YTD13 vs. YTD12

East Regulated

Integrated Utilities ($23)

East Regulated

Integrated

Utilities

$27

Ohio Companies ($24) Ohio Companies ($9)

West Regulated

Integrated Utilities ($9)

West Regulated

Integrated

Utilities

($19)

Texas Wires ($3) Texas Wires ($9)

Impact on EPS Impact on EPS $0.08 $0.01

19

Gas to Coal Switching

Overall generation from natural gas has decreased 34 percent year-to-date

38 days system average coal inventory at September 30, 2013

Coal approximately 81% hedged for 2014

3rd Quarter 2012 vs. 2013 Capacity Factor YTD 2012 vs. 2013 Capacity Factor

West East West East

20

Off System Sales Gross Margin Detail

CRES/RPM capacity payments decreased from last year by $9M

AEP/Dayton Hub pricing: 7% increase in liquidation prices

Lower Trading & Marketing results by $7M

Margins reduced by $19M due to a true-up of prior period PJM expenses

Third Quarter

YTD September 2013 Physical off-system sales margins increased from last year by $3M

CRES/RPM capacity payments decreased from last year by $88M

AEP/Dayton Hub pricing: 16% increase in liquidation prices

Lower Trading & Marketing results by $20M

Margins reduced by $15M due to a true-up of prior period PJM expenses

* CRES Payments of $23M in 2012 and $14M in 2013 included in Ohio Transition items on pages 5, 11 & 12

* CRES Payments of $96M in 2012 and $32M in 2013 included in Ohio Transition items on pages 5, 11 & 12

2012 2013

GWh ($millions) GWh ($millions)

OSS Physical Sales 8,926 76$ 10,425 66$

Capacity Payments CRES/RPM* 25$ 16$

Marketing/Trading - 18$ - 11$

Pre-Sharing Gross Margin 8,926 119$ 10,425 93$

Margin Shared (28)$ (24)$

Net OSS 91$ 69$

2012 2013

GWh ($millions) GWh ($millions)

OSS Physical Sales 18,462 152$ 24,445 155$

Capacity Payments CRES/RPM* 125$ 37$

Marketing/Trading 59$ 39$

Pre-Sharing Gross Margin 336$ 231$

Margin Shared (62)$ (55)$

Net OSS 274$ 176$