XML 27 R19.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Cost Reduction Initiatives
 6 Months Ended
Jun. 30, 2011
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, we began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

       

We recorded a charge of $293 million to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives.

 

The following table shows the cost reduction activity for the six months ended June 30, 2011:

   Total
   (in millions)
 Balance as of December 31, 2010 $ 17
 Incurred   -
 Settled   (9)
 Adjustments   (2)
 Balance as of June 30, 2011 $ 6

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
Appalachian Power Co [Member]
  
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, management began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

 

Management recorded a charge to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives. The total amount incurred in 2010 by Registrant Subsidiary was as follows:

 Company Total Cost Incurred
   (in thousands)
 APCo $ 56,925
 CSPCo   32,292
 I&M   45,036
 OPCo   53,108
 PSO   24,005
 SWEPCo   29,662

The Registrant Subsidiaries' cost reduction activity for the six months ended June 30, 2011 is described in the following table:

   Balance at        Balance at
 Company December 31, 2010 Incurred Settled Adjustments June 30, 2011
   (in thousands)
 APCo $ 3,726 $ - $ (2,327) $ (452) $ 947
 CSPCo   1,454   -   (1,346)   (4)   104
 I&M   2,198   -   (1,650)   (136)   412
 OPCo   2,919   -   (2,242)   (128)   549
 PSO   1,526   -   (1,048)   (167)   311
 SWEPCo   1,753   -   (1,325)   (38)   390

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
Columbus Southern Power Co [Member]
  
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, management began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

 

Management recorded a charge to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives. The total amount incurred in 2010 by Registrant Subsidiary was as follows:

 Company Total Cost Incurred
   (in thousands)
 APCo $ 56,925
 CSPCo   32,292
 I&M   45,036
 OPCo   53,108
 PSO   24,005
 SWEPCo   29,662

The Registrant Subsidiaries' cost reduction activity for the six months ended June 30, 2011 is described in the following table:

   Balance at        Balance at
 Company December 31, 2010 Incurred Settled Adjustments June 30, 2011
   (in thousands)
 APCo $ 3,726 $ - $ (2,327) $ (452) $ 947
 CSPCo   1,454   -   (1,346)   (4)   104
 I&M   2,198   -   (1,650)   (136)   412
 OPCo   2,919   -   (2,242)   (128)   549
 PSO   1,526   -   (1,048)   (167)   311
 SWEPCo   1,753   -   (1,325)   (38)   390

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
Indiana Michigan Power Co [Member]
  
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, management began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

 

Management recorded a charge to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives. The total amount incurred in 2010 by Registrant Subsidiary was as follows:

 Company Total Cost Incurred
   (in thousands)
 APCo $ 56,925
 CSPCo   32,292
 I&M   45,036
 OPCo   53,108
 PSO   24,005
 SWEPCo   29,662

The Registrant Subsidiaries' cost reduction activity for the six months ended June 30, 2011 is described in the following table:

   Balance at        Balance at
 Company December 31, 2010 Incurred Settled Adjustments June 30, 2011
   (in thousands)
 APCo $ 3,726 $ - $ (2,327) $ (452) $ 947
 CSPCo   1,454   -   (1,346)   (4)   104
 I&M   2,198   -   (1,650)   (136)   412
 OPCo   2,919   -   (2,242)   (128)   549
 PSO   1,526   -   (1,048)   (167)   311
 SWEPCo   1,753   -   (1,325)   (38)   390

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
Ohio Power Co [Member]
  
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, management began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

 

Management recorded a charge to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives. The total amount incurred in 2010 by Registrant Subsidiary was as follows:

 Company Total Cost Incurred
   (in thousands)
 APCo $ 56,925
 CSPCo   32,292
 I&M   45,036
 OPCo   53,108
 PSO   24,005
 SWEPCo   29,662

The Registrant Subsidiaries' cost reduction activity for the six months ended June 30, 2011 is described in the following table:

   Balance at        Balance at
 Company December 31, 2010 Incurred Settled Adjustments June 30, 2011
   (in thousands)
 APCo $ 3,726 $ - $ (2,327) $ (452) $ 947
 CSPCo   1,454   -   (1,346)   (4)   104
 I&M   2,198   -   (1,650)   (136)   412
 OPCo   2,919   -   (2,242)   (128)   549
 PSO   1,526   -   (1,048)   (167)   311
 SWEPCo   1,753   -   (1,325)   (38)   390

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
Public Service Co Of Oklahoma [Member]
  
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, management began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

 

Management recorded a charge to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives. The total amount incurred in 2010 by Registrant Subsidiary was as follows:

 Company Total Cost Incurred
   (in thousands)
 APCo $ 56,925
 CSPCo   32,292
 I&M   45,036
 OPCo   53,108
 PSO   24,005
 SWEPCo   29,662

The Registrant Subsidiaries' cost reduction activity for the six months ended June 30, 2011 is described in the following table:

   Balance at        Balance at
 Company December 31, 2010 Incurred Settled Adjustments June 30, 2011
   (in thousands)
 APCo $ 3,726 $ - $ (2,327) $ (452) $ 947
 CSPCo   1,454   -   (1,346)   (4)   104
 I&M   2,198   -   (1,650)   (136)   412
 OPCo   2,919   -   (2,242)   (128)   549
 PSO   1,526   -   (1,048)   (167)   311
 SWEPCo   1,753   -   (1,325)   (38)   390

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.
Southwestern Electric Power Co [Member]
  
Restructuring and Related Activities [Abstract]  
Cost Reduction Initiatives

12. COST REDUCTION INITIATIVES

 

In April 2010, management began initiatives to decrease both labor and non-labor expenses with a goal of achieving significant reductions in operation and maintenance expenses. A total of 2,461 positions was eliminated across the AEP System as a result of process improvements, streamlined organizational designs and other efficiencies. Most of the affected employees terminated employment May 31, 2010. The severance program provided two weeks of base pay for every year of service along with other severance benefits.

 

Management recorded a charge to Other Operation expense during the second quarter of 2010 primarily related to severance benefits as the result of headcount reduction initiatives. The total amount incurred in 2010 by Registrant Subsidiary was as follows:

 Company Total Cost Incurred
   (in thousands)
 APCo $ 56,925
 CSPCo   32,292
 I&M   45,036
 OPCo   53,108
 PSO   24,005
 SWEPCo   29,662

The Registrant Subsidiaries' cost reduction activity for the six months ended June 30, 2011 is described in the following table:

   Balance at        Balance at
 Company December 31, 2010 Incurred Settled Adjustments June 30, 2011
   (in thousands)
 APCo $ 3,726 $ - $ (2,327) $ (452) $ 947
 CSPCo   1,454   -   (1,346)   (4)   104
 I&M   2,198   -   (1,650)   (136)   412
 OPCo   2,919   -   (2,242)   (128)   549
 PSO   1,526   -   (1,048)   (167)   311
 SWEPCo   1,753   -   (1,325)   (38)   390

The remaining accruals are included primarily in Other Current Liabilities on the Condensed Consolidated Balance Sheets.