FILE NO.
070-07167

INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 24039
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2004
CONTENTS
	Exhibit
Summary of Billings	1
Derivation of Billing Rates	2
Calculation of Allowed Cost of Capital - Effective April 1, 2004	3

Exhibit 1

INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
SUMMARY OF BILLINGS
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2004
	January 2004					February 2004			March 2004
	Tons		Fee	Amount		Tons	Fee	Amount	Tons	Fee	Amount
			(per ton)	(000)			(per ton)	(000)		(per ton)	(000)
BARGING SERVICE BILLINGS TO AFFILIATES
AEP Resources, Inc.:
Memco Barge Line	-		$-	$350		-	$-	$339	-	$-	$300
Appalachian Power Company and
Ohio Power Company:
Sporn Plant	161,180		$1.49	$240		227,421	$1.63	$372	268,113	$1.29	$346
Appalachian Power Company:
Mountaineer Plant	286,538		$2.09	$600		224,900	$1.79	$403	429,206	$2.81	$1,205
Kanawha River Plant	-		-	-		-	-	-	836	1.16	1
Total	286,538		$2.09	$600		224,900	$1.79	$403	430,042	$2.80	$1,206
Indiana Michigan Power Company:
Tanners Creek	147,427		$2.61	$385		159,707	$3.15	$503	212,258	$3.19	$677
Indiana Michigan Power Company
and AEP Generating Company:
Rockport Plant	719,912		$1.76	$1,271		785,242	$1.75	$1,375	822,377	$1.84	$1,515
Ohio Power Company:
Cardinal Plant (Unit 1)	34,811		$2.26	$79		54,836	$3.23	$177	22,990	$3.39	$78
Kammer Plant	(5,405	)	2.00	(11	)	-	-	-	-	-	-
Total	29,406		$2.31	$68		54,836	$3.23	$177	22,990	$3.39	$78
BARGING SERVICE BILLINGS
TO UNAFFILIATED COMPANIES:
Buckeye Power Company:
Cardinal Plant (Unit 2 + 3)	114,582		$2.87	$329		117,658	$2.82	$332	132,247	$2.82	$373
Various Companies - Freight and
Demurrage	313,773		$1.93	$605		726,310	$1.87	$1,359	718,540	$1.81	$1,297
Various Companies - Rock, Sand
and Gravel	136,886		$2.25	$308		133,812	$2.64	$353	262,460	$2.38	$625
Note: The above amounts include demurrage charges

Exhibit 1 (Continued)

INDIANA MICHIGAN POWER COMPANY
RIVER TRANSPORTATION DIVISION
SUMMARY OF BILLINGS
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 2004
	January 2004				February 2004			March 2004
	Tons	Fee	Amount		Tons	Fee	Amount	Tons	Fee	Amount
		(per ton)	(000)			(per ton)	(000)		(per ton)	(000)
TOWING SERVICE BILLINGS
TO AFFILIATED COMPANIES:
AEP Resources, Inc.:
MEMCO Barge Line	-	-	$376		-	-	$298	-	-	$628
Appalachian Power Company   and Ohio Power Company :
Sporn Plant	-	-	$25		-	-	$27	-	-	$33
Appalachian Power Company:
Mountaineer Plant	-	-	$(3	)	-	-	$-	-	-	$-
Indiana Michigan Power Company:
Tanners Creek	-	-	$71		-	-	$75	-	-	$70
Ohio Power Company:
Gavin Plant	-	-	$101		-	-	$116	-	-	$113
TOWING SERVICE BILLINGS
TO UNAFFILIATED COMPANIES:
Other	-	-	$6		-	-	$-	-	-	$2

Exhibit 2

INDIANA MICHIGAN POWER COMPANY RIVER TRANSPORTATION DIVISION DERIVATION OF BILLING RATES FOR THE PERIOD JANUARY 1, 2004 THROUGH DECEMBER 31, 2004 BASED ON PROJECTED COSTS FOR THE PERIOD JANUARY 1, 2004 THROUGH DECEMBER 31, 2004
	Projected Cost		Non-Assigned Cost		Upper Ohio & Kanawha		Rockport Plant		Cardinal Units 2&3		Tanners Creek Plant		Gavin Plant
DIRECT EXPENSES
Rent	$14,947,939		$191,181		$5,414,969		$3,034,859		$1,762,622		$1,749,087		$2,795,221
Wages	15,144,621		-		3,130,079		5,713,471		1,989,050		2,247,462		2,064,559
Fuel	7,997,732		-		1,193,951		4,185,667		729,250		1,201,058		687,806
Fuel Taxes	2,224,221		-		386,609		1,104,664		212,563		335,621		184,764
All Other	6,805,556		15,247		1,754,091		2,473,059		746,789		912,273		904,097
Total Direct Expenses	47,120,069		206,428		11,879,699		16,511,720		5,440,274		6,445,501		6,636,447
Outside Fleeting    and Towing	259,168		-		36,364		-		222,804		-		-
Total Equipment       Expenses	47,379,237		206,428		11,916,063		16,511,720		5,663,078		6,445,501		6,636,447
Nonassigned Allocation	-		$(206,428	)	72,596		90,365		-		43,467		-
Allocated Overhead     Expenses	8,064,419		-		2,836,078		3,530,233		-		1,698,108		-
Return on Investment	1,160,000		-		407,946		507,795		-		244,259		-
Non-Affiliated Contracts	(8,831,760	)	-		(1,677,800	)	(159,080	)	(6,918,360	)	(76,520	)	(8,767,440	)
Re-allocation to   Affiliated Rates	-		-		(1,190,878	)	(1,482,356	)	1,255,282		(713,041	)	2,130,993
Less Contract Tow Barge    & O/H Costs
	(3,403,032	)	-		(3,335,267	)	-		-		(67,765	)	-
Total Projected Cost
(Revenue        Requirement)	$44,368,864		$-		$9,028,738		$18,998,677		$-		$7,574,009		-
Adjusted Ton Miles	6,020,272,300		-		2,064,174,800		2,671,200,500		-		1,284,897,000		-
Cost Per Adjusted   Ton Mile					$0.00437		$0.00711				$0.00589

Exhibit 3

INDIANA MICHIGAN POWER COMPANY RIVER TRANSPORTATION DIVISION RATE OF RETURN ON INVESTMENT
COMPONENT	@12/31/03 (000)		PERCENT OF TOTAL	EFFECTIVE COST		AFTER-TAX WEIGHTED RATE OF RETURN
Long-term Debt	$1,086,835	a	48.66%	6.17%	c	3.00%
Preferred Stock	71,546		3.20%	6.13%	c	0.20%
Common Stock	1,075,283	b	48.14%	12.00%	d	5.78%
Total	2,233,664		100%			8.98%

a) Long-term debt is net of unamortized debt expense and the unamortized loss on reacquired debt and excludes the liability for spent nuclear fuel disposal costs.

b) Common Equity includes the premium on preferred stock and excludes undistributed subsidiary earnings.

c) Cost at 12/31/03.

d) The rate ordered by the IURC in I&M’s 1993 retail rate proceeding.

Rate will be applied for billing purposes to the twelve month period commencing April 1, 2004.