APPALACHIAN POWER COMPANY Balance Sheets Assets & Other Debits FERC Period II - Beginning & Ending Balances 2008

Transcription

1 APPALACHIAN POWER COMPANY Balance Sheets Assets & Other Debits FERC Period II - Beginning & Ending Balances 2008 STATEMENT AA PAGE 1 OF 4 ($000) Line No. Account 12/31/ /31/2008 (a) (b) (c) 1 UTILITY PLANT 2 Utility Plant ( , 114) [includes EPIS Leased & associated Reserve] 7,974,614 8,589,271 3 Construction Work in Progress (107) 713, ,778 4 Total Utility Plant 8,687,677 9,336,050 5 (Less) Accum. Prov. for Depr., Amort., and Depl. (108, 110, 111, 115) 2,979,225 3,073,081 6 Net Utility Plant, Before Nuclear Fuel 5,708,453 6,262,969 7 Nuclear Fuel ( , 120.6) (Less) Accum. Prov. For Amort. Of Nuclear Fuel Assem. (120.5) Net Nuclear Fuel Net Utility Plant 5,708,453 6,262, OTHER PROPERTY AND INVESTMENTS 12 Nonutility Property (121) 11,809 11, (Less) Accum. Prov. for Depr. & Amort. (122) 5,383 5, Investments in Associated Companies (123) Investments in Subsidiary Companies (123.1) 9,251 9, Noncurrent Portion of Allowances 33,451 38, Other Investments (124) 25,340 25, Special Funds ( ) 73,122 73, Long-Term Portion of Derivative Assets (175) 74,729 74, Long-Term Portion of Derivative Assets - Hedges (176) Total Other Property and Investments 222, , CURRENT AND ACCRUED ASSETS 23 Cash (131) & Working Funds (135) &TCI (136) 2, Special Deposits ( ) 9,474 9, Notes Receivable (141) Customer Accounts Receivable (142) 145, , Other Accounts Receivable (143) 30,435 30, (Less) Accum. Prov. for Uncollectible Acct.-Credit (144) 13,948 13, Notes Receivable from Associated Companies (145) Accounts Receivable from Associated Companies (146) 111,812 86, Fuel Stock (151) 79,977 79, Fuel Stock Expense Undistributed (152) 2,226 2, Residuals (Elec.) and Extracted Products (153) Plant Material and Operating Supplies (154) 64,264 64, Merchandise (155) Other Materials and Supplies (156) Nuclear Materials Held for Sale (157) Allowances (158.1 and 158.2) 45,872 45, (Less) Noncurrent Portion of Allowances 33,451 38, Stores Expense Undistributed (163) Prepayments (165) 7,448 7, Interest and Dividends Receivable (171) Rents Receivable (172) 1,824 1, Accrued Utility Revenues (173) 38,397 38, Miscellaneous Current and Accrued Assets (174) Derivative Instrument Assets (175) 135, , (Less) Long-Term Portion of Derivative Instrument Assets (175) 74,729 74, Derivative Instrument Assets - Hedges (176) 3,998 4, (Less) Long-Term Portion of Derivative Instrument Assets - Hedges ( Total Current and Accrued Assets 558, ,069 Page 1 of 449

2 APPALACHIAN POWER COMPANY Balance Sheets Assets & Other Debits FERC Period II - Beginning & Ending Balances 2008 STATEMENT AA PAGE 2 OF 4 ($000) Line No. Account 12/31/ /31/2008 (a) (b) (c) 51 DEFERRED DEBITS 52 Unamortized Debt Expense (181) 6,042 9, Extraordinary Property Losses (182.1) Other Regulatory Assets (182.3) 653, , Prelim. Survey and Investigation Charges (183) 12,730 12, Clearing Accounts/Temp Facilities (184, 185) Miscellaneous Deferred Debits (186) 54,438 54, Def. Losses from Disposition of Utility Plant (187) Research, Devel. And Demonstration Expend. (188) Unamortized Loss on Reacquired Debt (189) 13,541 12, Accumulated Deferred Income Taxes (190) 302, , Total Deferred Debits 1,043,439 1,124, Total Assets and Other Debits 7,532,985 8,140,882 Page 2 of 449

3 APPALACHIAN POWER COMPANY Balance Sheets Liabilities & Other Credits FERC Period II - Beginning & Ending Balances 2008 ($000) Line No. Account 12/31/ /31/2008 (a) (b) (c) 1 PROPRIETARY CAPITAL 2 Common Stock Issued (201) 260, ,458 3 Preferred Stock Issued (204) INCLUDES AMOUNT DUE WITHIN ONE YEAR 17,752 17,752 4 Premium on Capital Stock (207) Other Paid-In-Capital ( ) 1,024,388 1,024,541 6 Installments Received on Capital Stock (212) (Less) Discount on Capital Stock (213) (Less) Capital Stock Expense (214) Retained Earnings (215, 215.1, 216) 829, , Unappropriated Undistr. Subsidiary Earnings (216.1) 2,218 2, Less: Reacquired Capital Stock (217) Accumulated Other Comprehensive Income (219) (19,885) (16,831) 13 Total Proprietary Capital 2,115,086 2,485, LONG_TERM DEBT 15 Bonds (221) INCLUDES AMOUNT DUE WITHIN ONE YEAR (Less) Reacquired Bonds (222) Advances from Associated Companies (223) 100, , Other Long-Term Debt (224) 2,764,473 3,149, Unamortized Premium on Long-Term Debt (225) Less: Unamortized Discount on Long-Term Debt-Debit (226) 17,174 15, Total Long-Term Debt 2,847,299 3,233, OTHER NONCURRENT LIABILITIES 23 Obligations Under Capital Leases - Noncurrent (227) 6,280 6, Accumulated Provision for Property Insurance (228.1) Accumulated Provision for Injuries and Damages (228.2) Accumulated Provision for Pensions and Benefits (228.3) 65,647 65, Accumulated Miscellaneous Operating Provisions (228.4) Accumulated Provision for Rate Refunds (229) Long-Term Portion of Derivative Instrument Liabilities 47,281 47, Long-Term Portion of Derivative Instrument Liabilities - Hedges Asset Retirement Obligations (230) 40,019 40, Total Other Non-Current Liabilities 159, , CURRENT AND ACCRUED LIABILITIES 32 Notes Payable (231) Accounts Payable (232) 241, , Notes Payable Associated Companies (233) 293, , Accounts Payable to Associated Companies (234) 108, , Customer Deposits (235) 50,260 50, Taxes Accrued (236) 59,300 33, Interest Accrued (237) 44,053 61, Dividends Declared (238) Matured Long-Term Debt (239) Matured Interest (240) Taxes Collections Payable (241) 4,784 4, Miscellaneous Current and Accrued Liabilities (242) 74,443 70, Obligations Under Capital Leases - Current (243) 4,821 4, Derivative Instrument Liabilities (244) 99,231 99, (Less) Long-Term Portion of Derivative Instrument Liabilities 47,281 47, Derivative Instrument Liabilities - Hedges (245) 3,140 3, (Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges Total Current and Accrued Liabilities 936, ,840 STATEMENT AA PAGE 3 OF 4 Page 3 of 449

4 APPALACHIAN POWER COMPANY Balance Sheets Liabilities & Other Credits FERC Period II - Beginning & Ending Balances 2008 ($000) Line No. Account 12/31/ /31/2008 (a) (b) (c) STATEMENT AA PAGE 4 OF 4 50 DEFERRED CREDITS 51 Customer Advances for Construction (252) Other Regulatory Liabilities (254) 107,937 70, Accumulated DITC (255) 19,284 15, Deferred Gains from Disposition of Utility Plant (256) Other Deferred Credits (253) 48,131 50, Unamortized Gain on Reacquired Debt (257) Accumulated DFIT ( ) 1,298,531 1,386, Total Deferred Credits 1,473,884 1,522, Total Liabilitites and Other Credits 7,532,985 8,140,882 Page 4 of 449

5 APPALACHIAN POWER COMPANY Income Statement FERC Period II - Twelve Months Ended December 31, 2008 ($000) STATEMENT AB PAGE 1 OF 2 Line No. Account Amount (a) (b) 1 UTILITY OPERATING INCOME 2 Operating Revenues (400) 2,838,877 3 Operating Expenses: 4 Operation Expenses (401) 1,934,632 5 Maintenance Expenses (402) 195,094 6 Depreciation Expense ( ) 189,502 7 Depreciation Expense for Asset Retirement Costs ( ) - 8 Amort. & Depl. of Utility Plant ( ) 17,570 9 Amort. of Utility Plant Acq. Adj. (406) - 10 Amort. of Property Losses (407) - 11 Amort. of Conversion Expenses (407) - 12 Regulatory Debits (407.3) 29, (Less) Regulatory Credits (407.4) - 14 Taxes Other Than Income Taxes (408.1) 93, Income Taxes - Federal (409.1) 14, Other (409.1) 1, Provision of Deferred Inc. Taxes (410.1) 86, (Less) Provision for Deferred Income Taxes - Cr. (411.1) - 19 Investment Tax Credit Adj. - Net (411.4) (3,128) 20 (Less) Gains from Disp. of Utility Plant (411.6) - 21 Losses from Disp. of Utility Plant (411.7) - 22 (Less) Gains from Disposition of Allowances (411.8) 26, Losses from Disposition of Allowances (411.9) - 24 Accretion Expense (411.10) 2, Total Utility Operating Expenses 2,535,250 26/27 Net Utility Operating Income 303, OTHER INCOME and DEDUCTIONS 29 Other Income 30 Nonutility Operating Income 31 Revenues from Merchandising, Jobbing & Contract Work (415) - 32 (Less) Costs & Exp. of Merchandising, Jobbing & Contract Work (416) - 33 Revenues from Nonutility Operations (417) - 34 (Less) Expenses of Nonutility Operations (417.1) - 35 Nonoperating Rental Income (418) Equity in Earnings of Subsidiary Companies (418.1) - 37 Interest and Dividend Income (419) 2, Allowance for Other Funds Used During Construction (419.1) 6, Miscellaneous Nonoperating Income (421) 32, Gain on Disposition of Property (421.1) - 41 Total Other Income 42, Other Income Deductions: 43 Loss on Disposition of Property (421.2) - 44 Miscellaneous Amortization (425) Miscellaneous Income Deductions ( ) 9, Total Other Income Deductions 9,670 Page 5 of 449

6 APPALACHIAN POWER COMPANY Income Statement FERC Period II - Twelve Months Ended December 31, 2008 ($000) STATEMENT AB PAGE 2 OF 2 Line No. Account Amount (a) (b) OTHER INCOME and DEDUCTIONS CONTINUED: 51 Taxes Applic. to Other Income and Deductions 52 Taxes Other Than Income Taxes (408.2) - 53 Income Taxes - Federal (409.2) (13,884) 54 Income Taxes - Other (409.2) (1,562) 55 Provision for Deferred Inc. Taxes (410.2) - 56 (Less) Provision for Deferred Income Taxes - Cr. (411.2) - 57 Investment Tax Credit Adj. - Net (411.5) (1,044) 58 (Less) Investment Tax Credits (420) - 59 Total Taxes on Other Inc. and Ded. (16,490) 60 Net Other Income and Deductions 49, INTEREST CHARGES 62 Interest on Long-Term Debt (427) 179, Amort. of Debt Discount and Expense (428) 2, Amort. of Loss on Reacquired Debt (428.1) 1, (Less) Amort. of Premium on Debt - Credit (429) - 66 (Less) Amort. of Gain on Reacquired Debt -Cr. (429.1) - 67 Interest on Debt to Assoc. Companies (430) 9, Other Interest Expense (431) (1,173) 69 (Less) Allowance for Borrowed Funds Used During Construction -Cr. (432) 6, Net Interest Charges 184, Income Before Extraordinary Items 168, EXTRAORDINARY ITEMS 73 Extraordinary Income (434) - 74 (Less) Extraordinary Deductions (435) - 75 Net Extraordinary Items - 76 Income Taxes - Federal and Other (409.3) - 77 Extraordinary Items After Taxes - 78 Net Income 168, (LESS) PREFERRED DIVIDEND Available for Common 167,550 Page 6 of 449

7 APPALACHIAN POWER COMPANY Statement of Retained Earnings FERC Period II - Beginning & Ending Balances 2008 ($000) STATEMENT AC PAGE 1 OF 1 Line No. Account Amount (a) (b) 1 APPROPRIATED RETAINED EARNINGS (ACCOUNT 215) 2 Balance - 12/31/07-3 Changes 4 Balance - 12/31/08-5 APPROPRIATED RET. EARN.-AMORTIZATION RESERVE, Federal (A/C215.1) 6 Balance - 12/31/07 9,190 7 Restricted Earnings-Amortization Reserve - 8 Balance - 12/31/08 9,190 9 Accounts 215, Balance - 12/31/08 9, UNAPPROPRIATED RETAINED EARNINGS ( Account 216) 11 Balance - 12/31/07 820, Changes 13 Adjustments to Retained earnings (Account 439): 14 Credit: 15 Credit: 16 Credit: 17 TOTAL Credits to Retained Earnings (Account 439) - 18 Debit: Amortization of Preferred Stock Redemption Premium - 19 Debit: 20 Debit: 21 TOTAL Debits to Retained Earnings (Account 439) - 22 Balance Transferred from Income ( Account 433 less Account 418.1) 168, Appropriations of Retained Earnings (Account 436): 24 Restricted Earnings-Amortization Reserve - 25 TOTAL Appropriations of Retained Earnings (Account 436) - 26 Dividends Declared - Preferred Stock (Account 437): 27 ALL SERIES (800) 28 TOTAL Dividends Declared -Preferred Stock (Account 437) (800) 29 Dividends Declared - Common Stock (Account 438): 0 30 Transfers from A/C Unapprop. Undist. Subsidiary Earnings 31 Balance - 12/31/08 987, Accounts 215, 215.1, Balance - 12/31/08 996, UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1) 34 Balance - 12/31/07 2, Equity Earnings in Subsidiary for the Period - CREDIT (Account 418.1) 0 36 (LESS) Dividends Recieved (DEBIT) 37 Other Changes 38 Balance - 12/31/08 2,218 Page 7 of 449

8 STATEMENT AD PAGE 1 OF 1 APPALACHIAN POWER COMPANY Summary of the Cost of Plant In Service FERC Period II - 13 Mo. End Balances Commencing December 31, 2007 & 13 Mo. Ave. Balance ($000) Line Intangible Production Plant Transmission Distribution General Total No. Month Plant Steam Nuclear Hydraulic Other Total Plant Plant Plant Plant (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (l) 1 December ,692 3,223, , ,084 3,624,703 1,673,183 2,372, ,048 7,960,203 2 January ,671 3,240, , ,084 3,641,978 1,676,812 2,382, ,103 7,992,295 3 February ,763 3,258, , ,084 3,660,008 1,690,532 2,394, ,182 8,037,314 4 March ,796 3,280, , ,084 3,681,160 1,694,058 2,406, ,262 8,074,538 5 April ,820 3,300, , ,084 3,701,132 1,697,307 2,421, ,447 8,114,132 6 May ,847 3,299, , ,084 3,700,436 1,717,585 2,444, ,654 8,158,185 7 June ,861 3,326, , ,084 3,727,069 1,722,672 2,460, ,885 8,206,700 8 July ,841 3,349, , ,084 3,750,597 1,726,479 2,475, ,341 8,251,089 9 August ,633 3,369, , ,084 3,770,106 1,734,934 2,501, ,795 8,307, September ,379 3,388, , ,084 3,789,552 1,738,631 2,517, ,037 8,348, October ,134 3,408, , ,084 3,809,066 1,742,454 2,532, ,269 8,388, November ,892 3,459, , ,084 3,860,024 1,746,283 2,547, ,442 8,460, December ,726 3,494, , ,084 3,894,466 1,798,628 2,573, ,397 8,574, Total 13 Months 1,647,054 43,399,148-2,597,055 2,614,095 48,610,297 22,359,559 32,031,940 2,224, ,873, Mo. Ave. Balance 126,696 3,338, , ,084 3,739,254 1,719,966 2,463, ,143 8,221,054 ARO Amounts in Avg. Bal. - 13, , ,620 Page 8 of 449

9 STATEMENT AE PAGE 1 OF 1 APPALACHIAN POWER COMPANY Accumulated Depreciation and Amortization FERC Period II - 13 Mo. End Balances Commencing December 31, 2007 & 13 Mo. Ave. Balance ($000) Line Production Plant Transmission Distribution General Amortization Total No. Month Steam Nuclear Hydraulic Other Total Plant Plant Plant EPIS Plant (a) (b) (d) (e) (f) (g) (h) (i) (j) (k) (l) 1 December ,383, , ,923 1,624, , ,987 55,735 79,794 2,979,043 2 January ,387, , ,182 1,628, , ,866 55,732 81,169 2,986,708 3 February ,389, , ,441 1,631, , ,797 55,729 82,557 2,992,846 4 March ,391, , ,699 1,633, , ,736 55,726 83,962 2,998,947 5 April ,394, , ,958 1,637, , ,649 55,723 85,381 3,006,332 6 May ,398, , ,217 1,641, , ,567 55,721 86,814 3,014,125 7 June ,402, , ,476 1,645, , ,580 55,718 88,263 3,022,490 8 July ,406, , ,734 1,650, , ,629 55,716 89,726 3,031,010 9 August ,410, , ,993 1,654, , ,691 55,715 91,203 3,039, September ,413, , ,252 1,658, , ,884 55,714 92,705 3,047, October ,416, , ,510 1,662, , ,135 55,713 94,233 3,055, November ,420, , ,769 1,666, , ,441 55,713 95,786 3,063, December ,425, , ,028 1,671, , ,831 55,712 97,364 3,072, Total 13 Months 18,240,203-1,560,906 1,605,182 21,406,291 6,918,413 9,111, ,367 1,148,956 39,309, Mo. Ave. Balance 1,403, , ,476 1,646, , ,907 55,721 88,381 3,023,833 ARO Amounts in Avg. Bal. 8, , ,584 Page 9 of 449

10 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 1 OF 8 (DEBIT) CREDIT ACCOUNT 281: COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F PER BOOKS NON-APPLICABLE/NON-UTILITY AVERAGE ELECTRIC BALANCE AS BALANCE AS BALANCE AS BALANCE AS UTILITY ACCUMULATED DEFERRED FIT ITEMS OF OF OF OF (B+C+D+E)/2 1 TX AMORT POLLUTION CONT EQPT 59,591,400 77,769,400 68,680, NON-UTILITY DEFERRED FIT SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACCOUNT ,591,400 77,769,40 68,680, ACCOUNT 282: BOOK VS. TAX DEPRECIATION 461,148, ,115, ,632, FERC ORDER 144 CATCH UP 697, , , EX L/T DFIT TX RESERVE TRA 90,627 35,627 63, CAPD INTEREST-SECTION 481(a)-CHANGE IN METHD 4,686,651 4,043,651 4,365, RELOCATION CST-SECTION 481(a)-CHANGE IN METHD 847, , , PJM INTEGRATION-SEC 481(a)-INTANG-DFD LABOR 463, , , BK PLANT IN SERVICE - SFAS ARO 3,188,515 3,188,515 3,188, DFIT GENERATION PLANT 39,629,626 37,900,626 38,765, DEFD FIT BENEFIT - PROP RETIRED 49,427,871 47,311,871 48,369, ABFUDC 1,122,249 3,283,249 2,202, ABFUDC - TRANSMISSION 1,191,815 1,191,815 1,191, ABFUDC - GENERAL 34,413 34,413 34, ABFUDC - DISTRIBUTION 1,769 1,769 1, TXS CAPD 237, , , PENS CAPD 79,501 45,501 62, SEC 481 PENS/OPEB ADJUSTMENT 27,332 27,332 27, SAV PLAN CAPD 61,997 44,997 53, PERCENT REPAIR ALLOWANCE 26,490,924 26,359,924 26,425, CAPITALIZED RELOCATION COSTS 1,399,904 1,563,904 1,481, EXTRAORDINARY LOSS ON DISP OF PROP 112, , , DEFD TAX GAIN - FIBER OPTIC LINE 1,923 1,923 1, AMORT PERPETUAL TERM ELECT PLT GAIN ON DEFERRED DEBT 383, , , REMOVAL COSTS 3,139,492 3,032,492 3,085, REMOVAL COSTS REV - SFAS ARO (798,376) (798,376) (798,376) 39 TAX WRITE OFF MINE DEVEL COSTS (316,319) (316,319) (316,319) 40 BK DEPLETION -- NUEAST 312, , , NON-UTILITY DEFERRED FIT SFAS 109 FLOW-THRU ,702, ,702,793 (201,702,793) (201,702,793) 0 43 SFAS 109 EXCESS DFIT (3,075,895) (3,075,895) 3,075,895 3,075, TOTAL ACOUNT ,291, ,577,068 (198,626,898) (198,626,898) 615,807, ACCOUNT 283: SV - UNDER RECOVERY FUEL COST 0 16,255,000 8,127, PROERTY TAX - NEW METHOD - BOOK 2,726,757 2,726,757 2,726, MTM BK GAIN - A/L - TAX DEFL 8,483,805 8,483,805 8,483, MARK & SPREAD-DEFL-283-A/L 13,431,871 13,431,871 13,431, ACCRUED BK PENSION EXPENSE 44,991,369 45,165,369 45,078, ACCRUED BK PENSION COSTS - SFAS 158 (24,526,292) (24,526,292) (24,526,292) 56 REG ASSET - UNREAL LOSS FWD 362, , , UMBRELLA TRUST - PLCY CSV EARN 1,108,100 1,108,100 1,108, DEFD RTO EXPS & CARRYING CHARGES 2,154,449 1,680,449 1,917, DEFD ENVIRON COMP COSTS & CARRYING CHARGES 20,190,601 27,743,601 23,967, DEFD SYS RELIABILITY COSTS & CARRYING CHARGES 16,702,557 21,962,557 19,332, DEFD EQUITY CARRY CHRGS-RELIABILITY CAPITAL (3,641,771) (3,641,771) (3,641,771) 62 RATE CASE DEFD CHGS 149, , , BOOK > TAX BASIS - EMA - A/C 283 1,793,165 (1,100,835) 346, DEFD TAX GAIN - EPA AUCTION 2,593,171 2,593,171 2,593, BK DEFL - MACSS COSTS 1,994,851 1,994,851 1,994, TRANSITION REGULATORY ASSETS 4,456,777 2,618,777 3,537, REG ASSET - SFAS ARO 6,533,037 6,533,037 6,533,037 Page 10 of 449

11 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 2 OF 8 (DEBIT) CREDIT COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F PER BOOKS NON-APPLICABLE/NON-UTILITY AVERAGE ELECTRIC BALANCE AS BALANCE AS BALANCE AS BALANCE AS UTILITY ACCUMULATED DEFERRED FIT ITEMS OF OF OF OF (B+C+D+E)/2 68 REG ASSET - SFAS PENSIONS 24,526,292 24,526,292 24,526, REG ASSET - SFAS SERP 33,516 33,516 33, REG ASSET - SFAS OPEB 7,506,714 7,506,714 7,506, TAX DEFL - NON-DEPRECIABLES (137) (137) (137) 72 BOOK LEASES CAPITALIZED FOR TAX 428, , , CAPITALIZED SOFTWARE COSTS - BOOK 15,320,018 14,780,018 15,050, LOSS ON REACQUIRED DEBT 4,593,017 4,113,017 4,353, POST RETIREMENT BEN - PAYMENT 426, , , DEFD SFAS 106 BOOK COSTS 21,105 21,105 21, REG ASSET - ACCRUED SFAS 112 5,928,706 5,928,706 5,928, NON-UTILITY DEFERRED FIT 5,193,797 5,193,797 (5,193,797) (5,193,797) 0 79 SFAS 109 FLOW-THRU ,601, ,601,590 (147,601,590) (147,601,590) 0 80 SFAS 109 EXCESS DFIT ADIT FED - HEDGE-INTEREST RATE ,982,574 2,982,574 (2,982,574) (2,982,574) 0 82 ADIT FED - HEDGE-FOREIGN EXC ,518 34,518 (34,518) (34,518) 0 83 SFAS 133 ADIT FED - SFAS 133 NONAFFIL ,379,119 1,379,119 (1,379,119) (1,379,119) ,480, ,496,502 (157,191,598) (157,191,598) 169,796, DEFD STATE INCOME TAXES 26,269,000 29,128,000 27,698, SFAS DEFD STATE INCOME TAXES 104,899, ,899,000 (104,899,000) (104,899,000) TOTAL ACCOUNT ,648, ,523,502 (262,090,598) (262,090,598) 197,495, JURISDICTIONAL AMOUNTS FUNCTIONALIZED TOTAL COMPANY AMOUNTS FUNCTIONALIZED REFUNCTIONALIZED BASED ON JURISDICTIONAL PLANT NOTE: POST 1970 ACCUMULATED DEFERRED 101 INV TAX CRED. (JDITC) IN A/C SEC ALLOC - ITC - 46F1-10% 6,520,968 5,476,968 5,998, TOTAL ACCOUNT 255 6,520,968 5,476, ,998,968 Page 11 of 449

12 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 3 OF 8 COLUMN A COLUMN G COLUMN H COLUMN I FUNCTIONALIZATION AVERAGE ACCUMULATED DEFERRED FIT ITEMS GENERATION TRANSMISSION DISTRIBUTION ACCOUNT 281: 1 TX AMORT POLLUTION CONT EQPT NON-UTILITY DEFERRED FIT 6 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACCOUNT ACCOUNT 282: BOOK VS. TAX DEPRECIATION 15 FERC ORDER 144 CATCH UP 16 EX L/T DFIT TX RESERVE TRA 17 CAPD INTEREST-SECTION 481(a)-CHANGE IN METHD 18 RELOCATION CST-SECTION 481(a)-CHANGE IN METHD 19 PJM INTEGRATION-SEC 481(a)-INTANG-DFD LABOR 20 BK PLANT IN SERVICE - SFAS ARO 21 DFIT GENERATION PLANT 22 DEFD FIT BENEFIT - PROP RETIRED 23 ABFUDC 24 ABFUDC - TRANSMISSION 25 ABFUDC - GENERAL 26 ABFUDC - DISTRIBUTION 27 TXS CAPD 28 PENS CAPD 29 SEC 481 PENS/OPEB ADJUSTMENT 30 SAV PLAN CAPD 31 PERCENT REPAIR ALLOWANCE 32 CAPITALIZED RELOCATION COSTS 33 EXTRAORDINARY LOSS ON DISP OF PROP 34 DEFD TAX GAIN - FIBER OPTIC LINE 35 AMORT PERPETUAL TERM ELECT PLT 36 GAIN ON DEFERRED DEBT 37 REMOVAL COSTS 38 REMOVAL COSTS REV - SFAS ARO 39 TAX WRITE OFF MINE DEVEL COSTS 40 BK DEPLETION -- NUEAST 41 NON-UTILITY DEFERRED FIT 42 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACOUNT ACCOUNT 283: SV - UNDER RECOVERY FUEL COST 51 PROERTY TAX - NEW METHOD - BOOK 52 MTM BK GAIN - A/L - TAX DEFL 53 MARK & SPREAD-DEFL-283-A/L 54 ACCRUED BK PENSION EXPENSE 55 ACCRUED BK PENSION COSTS - SFAS REG ASSET - UNREAL LOSS FWD 57 UMBRELLA TRUST - PLCY CSV EARN 58 DEFD RTO EXPS & CARRYING CHARGES 59 DEFD ENVIRON COMP COSTS & CARRYING CHARGES 60 DEFD SYS RELIABILITY COSTS & CARRYING CHARGES 61 DEFD EQUITY CARRY CHRGS-RELIABILITY CAPITAL 62 RATE CASE DEFD CHGS 63 BOOK > TAX BASIS - EMA - A/C DEFD TAX GAIN - EPA AUCTION 65 BK DEFL - MACSS COSTS 66 TRANSITION REGULATORY ASSETS 67 REG ASSET - SFAS ARO 68,680,40 68,680,40 116,453, ,038, ,141, , , ,930 46,197 1,366,225 1,842,158 1,156, , , ,681, ,512 38,765, ,762,838 6,771,875 31,835,158 1,926, ,673 81, ,191, ,533 21, , , , ,200 39,301 (25,659) 19,631 33, ,168 33,329 17,449,457 3,531,833 5,444, ,659 1,088, , , , ,747 3,085, (798,376) 0 0 (316,319) , ,662, ,982, ,162,174 8,127,50 247, ,764 1,592,654 8,483, ,431, ,929,715 2,528,241 26,620,413 (8,452,213) (1,078,025) (14,996,054) 362, ,108, ,917, ,967, ,747,101 12,585,456 0 (2,132,681) (1,509,090) 62,370 28,863 58, , ,593, ,994, ,537,777 6,533, Page 12 of 449

13 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 4 OF 8 COLUMN A COLUMN G COLUMN H COLUMN I FUNCTIONALIZATION AVERAGE ACCUMULATED DEFERRED FIT ITEMS 68 REG ASSET - SFAS PENSIONS 69 REG ASSET - SFAS SERP 70 REG ASSET - SFAS OPEB 71 TAX DEFL - NON-DEPRECIABLES 72 BOOK LEASES CAPITALIZED FOR TAX 73 CAPITALIZED SOFTWARE COSTS - BOOK 74 LOSS ON REACQUIRED DEBT 75 POST RETIREMENT BEN - PAYMENT 76 DEFD SFAS 106 BOOK COSTS 77 REG ASSET - ACCRUED SFAS NON-UTILITY DEFERRED FIT 79 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT ADIT FED - HEDGE-INTEREST RATE ADIT FED - HEDGE-FOREIGN EXC SFAS 133 ADIT FED - SFAS 133 NONAFFIL DEFD STATE INCOME TAXES 89 SFAS DEFD STATE INCOME TAXES TOTAL ACCOUNT JURISDICTIONAL AMOUNTS FUNCTIONALIZED TOTAL COMPANY AMOUNTS FUNCTIONALIZED REFUNCTIONALIZED BASED ON JURISDICTIONAL PLANT NOTE: POST 1970 ACCUMULATED DEFERRED 101 INV TAX CRED. (JDITC) IN A/C SEC ALLOC - ITC - 46F1-10% TOTAL ACCOUNT 255 GENERATION TRANSMISSION DISTRIBUTION 8,452,213 1,078,025 14,996,054 (117) 0 33,633 2,837, ,521 4,162, (274) 42,000 9, ,197 6,686,693 1,459,782 6,903,543 1,423,665 (221,606) 3,150, , , ,979 18,126 2,838, ,590 2,433,892 93,912,266 12,451,217 63,433,421 8,878,500 8,283,000 10,537, ,790,766 20,734,217 73,970, ,890,053 3,108, ,890,053 3,108,915 Page 13 of 449

14 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 5 OF 8 COLUMN A COLUMN J COLUMN K COLUMN L FUNCTIONALIZATION 12/31/07 ACCUMULATED DEFERRED FIT ITEMS GENERATION TRANSMISSION DISTRIBUTION ACCOUNT 281: 1 TX AMORT POLLUTION CONT EQPT NON-UTILITY DEFERRED FIT 6 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACCOUNT ACCOUNT 282: BOOK VS. TAX DEPRECIATION 15 FERC ORDER 144 CATCH UP 16 EX L/T DFIT TX RESERVE TRA 17 CAPD INTEREST-SECTION 481(a)-CHANGE IN METHD 18 RELOCATION CST-SECTION 481(a)-CHANGE IN METHD 19 PJM INTEGRATION-SEC 481(a)-INTANG-DFD LABOR 20 BK PLANT IN SERVICE - SFAS ARO 21 DFIT GENERATION PLANT 22 DEFD FIT BENEFIT - PROP RETIRED 23 ABFUDC 24 ABFUDC - TRANSMISSION 25 ABFUDC - GENERAL 26 ABFUDC - DISTRIBUTION 27 TXS CAPD 28 PENS CAPD 29 SEC 481 PENS/OPEB ADJUSTMENT 30 SAV PLAN CAPD 31 PERCENT REPAIR ALLOWANCE 32 CAPITALIZED RELOCATION COSTS 33 EXTRAORDINARY LOSS ON DISP OF PROP 34 DEFD TAX GAIN - FIBER OPTIC LINE 35 AMORT PERPETUAL TERM ELECT PLT 36 GAIN ON DEFERRED DEBT 37 REMOVAL COSTS 38 REMOVAL COSTS REV - SFAS ARO 39 TAX WRITE OFF MINE DEVEL COSTS 40 BK DEPLETION -- NUEAST 41 NON-UTILITY DEFERRED FIT 42 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACOUNT ACCOUNT 283: SV - UNDER RECOVERY FUEL COST 51 PROERTY TAX - NEW METHOD - BOOK 52 MTM BK GAIN - A/L - TAX DEFL 53 MARK & SPREAD-DEFL-283-A/L 54 ACCRUED BK PENSION EXPENSE 55 ACCRUED BK PENSION COSTS - SFAS REG ASSET - UNREAL LOSS FWD 57 UMBRELLA TRUST - PLCY CSV EARN 58 DEFD RTO EXPS & CARRYING CHARGES 59 DEFD ENVIRON COMP COSTS & CARRYING CHARGES 60 DEFD SYS RELIABILITY COSTS & CARRYING CHARGES 61 DEFD EQUITY CARRY CHRGS-RELIABILITY CAPITAL 62 RATE CASE DEFD CHGS 63 BOOK > TAX BASIS - EMA - A/C DEFD TAX GAIN - EPA AUCTION 65 BK DEFL - MACSS COSTS 66 TRANSITION REGULATORY ASSETS 67 REG ASSET - SFAS ARO 59,591,40 59,591,40 106,366, ,700, ,082, , , ,930 56,697 1,466,725 1,978,158 1,241, , , ,681, ,512 39,629, ,907,338 6,937,875 32,582,658 1,086,985 13,173 22, ,191, ,533 21, , , , ,700 49,801 (25,659) 19,631 33, ,168 38,829 17,210,957 3,709,333 5,570, ,159 1,075, , , , ,247 3,139, (798,376) 0 0 (316,319) , ,660, ,932, ,071, , ,764 1,592,654 8,483, ,431, ,867,715 2,516,741 26,606,913 (8,452,213) (1,078,025) (14,996,054) 362, ,108, ,154, ,190, ,733,101 9,969,456 0 (2,132,681) (1,509,090) 62,370 28,863 58,750 1,793, ,593, ,994, ,456,777 6,533, Page 14 of 449

15 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 6 OF 8 COLUMN A COLUMN J COLUMN K COLUMN L FUNCTIONALIZATION 12/31/07 ACCUMULATED DEFERRED FIT ITEMS 68 REG ASSET - SFAS PENSIONS 69 REG ASSET - SFAS SERP 70 REG ASSET - SFAS OPEB 71 TAX DEFL - NON-DEPRECIABLES 72 BOOK LEASES CAPITALIZED FOR TAX 73 CAPITALIZED SOFTWARE COSTS - BOOK 74 LOSS ON REACQUIRED DEBT 75 POST RETIREMENT BEN - PAYMENT 76 DEFD SFAS 106 BOOK COSTS 77 REG ASSET - ACCRUED SFAS NON-UTILITY DEFERRED FIT 79 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT ADIT FED - HEDGE-INTEREST RATE ADIT FED - HEDGE-FOREIGN EXC SFAS 133 ADIT FED - SFAS 133 NONAFFIL DEFD STATE INCOME TAXES 89 SFAS DEFD STATE INCOME TAXES TOTAL ACCOUNT JURISDICTIONAL AMOUNTS FUNCTIONALIZED TOTAL COMPANY AMOUNTS FUNCTIONALIZED REFUNCTIONALIZED BASED ON JURISDICTIONAL PLANT NOTE: POST 1970 ACCUMULATED DEFERRED 101 INV TAX CRED. (JDITC) IN A/C SEC ALLOC - ITC - 46F1-10% TOTAL ACCOUNT 255 GENERATION TRANSMISSION DISTRIBUTION 8,452,213 1,078,025 14,996,054 (117) 0 33,633 2,837, ,521 4,162, (274) 42,000 9, ,197 6,806,693 1,486,282 7,027,043 1,485,665 (161,106) 3,268, , , ,979 18,126 2,838, ,590 2,433,892 83,575,266 12,749,717 61,963,921 8,341,000 7,828,000 10,100,000 91,916,266 20,577,717 72,063, ,151,553 3,369, ,151,553 3,369,415 Page 15 of 449

16 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 7 OF 8 COLUMN A COLUMN M COLUMN N COLUMN O FUNCTIONALIZATION 12/31/08 ACCUMULATED DEFERRED FIT ITEMS GENERATION TRANSMISSION DISTRIBUTION ACCOUNT 281: 1 TX AMORT POLLUTION CONT EQPT NON-UTILITY DEFERRED FIT 6 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACCOUNT ACCOUNT 282: BOOK VS. TAX DEPRECIATION 15 FERC ORDER 144 CATCH UP 16 EX L/T DFIT TX RESERVE TRA 17 CAPD INTEREST-SECTION 481(a)-CHANGE IN METHD 18 RELOCATION CST-SECTION 481(a)-CHANGE IN METHD 19 PJM INTEGRATION-SEC 481(a)-INTANG-DFD LABOR 20 BK PLANT IN SERVICE - SFAS ARO 21 DFIT GENERATION PLANT 22 DEFD FIT BENEFIT - PROP RETIRED 23 ABFUDC 24 ABFUDC - TRANSMISSION 25 ABFUDC - GENERAL 26 ABFUDC - DISTRIBUTION 27 TXS CAPD 28 PENS CAPD 29 SEC 481 PENS/OPEB ADJUSTMENT 30 SAV PLAN CAPD 31 PERCENT REPAIR ALLOWANCE 32 CAPITALIZED RELOCATION COSTS 33 EXTRAORDINARY LOSS ON DISP OF PROP 34 DEFD TAX GAIN - FIBER OPTIC LINE 35 AMORT PERPETUAL TERM ELECT PLT 36 GAIN ON DEFERRED DEBT 37 REMOVAL COSTS 38 REMOVAL COSTS REV - SFAS ARO 39 TAX WRITE OFF MINE DEVEL COSTS 40 BK DEPLETION -- NUEAST 41 NON-UTILITY DEFERRED FIT 42 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT TOTAL ACOUNT ACCOUNT 283: SV - UNDER RECOVERY FUEL COST 51 PROERTY TAX - NEW METHOD - BOOK 52 MTM BK GAIN - A/L - TAX DEFL 53 MARK & SPREAD-DEFL-283-A/L 54 ACCRUED BK PENSION EXPENSE 55 ACCRUED BK PENSION COSTS - SFAS REG ASSET - UNREAL LOSS FWD 57 UMBRELLA TRUST - PLCY CSV EARN 58 DEFD RTO EXPS & CARRYING CHARGES 59 DEFD ENVIRON COMP COSTS & CARRYING CHARGES 60 DEFD SYS RELIABILITY COSTS & CARRYING CHARGES 61 DEFD EQUITY CARRY CHRGS-RELIABILITY CAPITAL 62 RATE CASE DEFD CHGS 63 BOOK > TAX BASIS - EMA - A/C DEFD TAX GAIN - EPA AUCTION 65 BK DEFL - MACSS COSTS 66 TRANSITION REGULATORY ASSETS 67 REG ASSET - SFAS ARO 77,769,40 77,769,40 126,540, ,375, ,200, , ,029 0 (70) 35,697 1,265,725 1,706,158 1,071, , , ,681, ,512 37,900, ,618,338 6,605,875 31,087,658 2,765, , , ,191, ,533 21, , , , ,700 28,801 (25,659) 19,631 33, ,168 27,829 17,687,957 3,354,333 5,317, ,159 1,100, , , , ,247 3,032, (798,376) 0 0 (316,319) , ,664, ,032, ,253,174 16,255,00 247, ,764 1,592,654 8,483, ,431, ,991,715 2,539,741 26,633,913 (8,452,213) (1,078,025) (14,996,054) 362, ,108, ,680, ,743, ,761,101 15,201,456 0 (2,132,681) (1,509,090) 62,370 28,863 58,750 (1,100,835) 0 0 2,593, ,994, ,618,777 6,533, Page 16 of 449

17 APPALACHIAN POWER COMPANY SPECIFIED DEFERRED CREDITS PERIOD ENDED DECEMBER 31, 2008 STATEMENT AF PAGE 8 OF 8 COLUMN A COLUMN M COLUMN N COLUMN O FUNCTIONALIZATION 12/31/08 ACCUMULATED DEFERRED FIT ITEMS 68 REG ASSET - SFAS PENSIONS 69 REG ASSET - SFAS SERP 70 REG ASSET - SFAS OPEB 71 TAX DEFL - NON-DEPRECIABLES 72 BOOK LEASES CAPITALIZED FOR TAX 73 CAPITALIZED SOFTWARE COSTS - BOOK 74 LOSS ON REACQUIRED DEBT 75 POST RETIREMENT BEN - PAYMENT 76 DEFD SFAS 106 BOOK COSTS 77 REG ASSET - ACCRUED SFAS NON-UTILITY DEFERRED FIT 79 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT ADIT FED - HEDGE-INTEREST RATE ADIT FED - HEDGE-FOREIGN EXC SFAS 133 ADIT FED - SFAS 133 NONAFFIL DEFD STATE INCOME TAXES 89 SFAS DEFD STATE INCOME TAXES TOTAL ACCOUNT JURISDICTIONAL AMOUNTS FUNCTIONALIZED TOTAL COMPANY AMOUNTS FUNCTIONALIZED REFUNCTIONALIZED BASED ON JURISDICTIONAL PLANT NOTE: POST 1970 ACCUMULATED DEFERRED 101 INV TAX CRED. (JDITC) IN A/C SEC ALLOC - ITC - 46F1-10% TOTAL ACCOUNT 255 GENERATION TRANSMISSION DISTRIBUTION 8,452,213 1,078,025 14,996,054 (117) 0 33,633 2,837, ,521 4,162, (274) 42,000 9, ,197 6,566,693 1,433,282 6,780,043 1,361,665 (282,106) 3,033, , , ,979 18,126 2,838, ,590 2,433, ,249,266 12,152,717 64,902,921 9,416,000 8,738,000 10,974, ,665,266 20,890,717 75,876, ,628,553 2,848, ,628,553 2,848,415 Page 17 of 449

18 APPALACHIAN POWER COMPANY Specified Plant Accounts (Other Than Plant In Service) and Deferred Debits FERC PERIOD II - Average of the Beginning and Ending Balances ($000) STATEMENT AG PAGE 1 OF 1 Line Average No. Description Balance (a) (b) 1 LAND, LAND RIGHTS and STRUCTURES and IMPROVEMENTS in ACCOUNT 105 (1 2 Production 1,085 3 Transmission 1,897 4 Distribution General & Intangible 35 6 TOTAL Ave. Land and Land Rights Balances for Electric Plant Held for Future Use 3,128 7 OTHER (2): 8 Extraordinary Property Losses (182.1) TOTAL Ave. Other Balances ACCUMULATED DEFERRED INCOME TAXES ACCOUNT 190 (3) (4): 11 TOTAL Ave. Accumulated Deferred Income Tax Balances Account ,055 (1) REFER TO STATEMENT AG-1 (2) REFER TO STATEMENT AG-2 (3) REFER TO STATEMENT AG-3 (4) REFER TO STATEMENT BK FOR FUNCTIONALIZATION AMOUNTS. Page 18 of 449

19 APPALACHIAN POWER COMPANY Electric Plant Held for Future Use - A\C 105 FERC PERIOD II - Average of the Beginning and Ending Balances ($000) STATEMENT AG-1 PAGE 1 OF 1 Line Average No. Description 12/31/ /31/2008 Balance (a) (b) (c) (d) 1 Production: 2 Land 1,085 1,085 1,085 3 Land Rights Structures and Improvements Total Production 1,085 1,085 1,085 6 Transmission: 7 Land Land Rights 1,127 1,127 1,127 9 Structures and Improvements Total Transmission 1,897 1,897 1, Distribution: 12 Land Land Rights Structures and Improvements Total Distribution General & Intangible: 17 Land Land Rights Structures and Improvements Total General & Intangible Electric Plant Held for Future Use: 22 Land 1,843 1,843 1, Land Rights 1,131 1,131 1, Structures and Improvements Total Elect. Plant Held for Future Use 3,128 3,128 3,128 Page 19 of 449

20 APPALACHIAN POWER COMPANY Deferred Debits FERC PERIOD II - Average of the Beginning and Ending Balances ($000) STATEMENT AG-2 PAGE 1 OF 1 Line Average No. Description 12/31/ /31/2008 Balance (a) (b) (c) (d) 1 Extraordinary Property Losses (182.1) TOTAL Page 20 of 449

21 APPALACHIAN POWER COMPANY ACCUMULATED DEFERRED INCOME TAX IN ACCOUNT 190 PERIOD ENDED DECEMBER 31, 2008 STATEMENT AG-3 PAGE 1 OF 8 DEBIT (CREDIT) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F PER BOOKS NON-APPLICABLE/NON-UTILITY AVERAGE ELECTRIC BALANCE AS BALANCE AS BALANCE AS BALANCE AS UTILITY ACCUMULATED DEFERRED FIT ITEMS OF OF OF OF (B+C+D+E)/2 ACCOUNT 190: 1 BOOK VS. TAX DEPRECIATION 20,489 20,489 20,489 2 INT EXP CAPITALIZED FOR TAX 40,490,176 51,524,176 46,007,176 3 CIAC-BOOK RECEIPTS - DISTR - SV 9,399,778 10,362,778 9,881,278 4 CIAC-BOOK RECEIPTS - TRANS 1,253,569 1,253,569 1,253,569 5 CIAC-BOOK RECEIPTS - DISTR - SW 3,348,817 4,296,817 3,822,817 6 CIAC - MUSSER ACQUISTION 343, , ,638 7 CUST ADV INC FOR TA- SV SW - OVER RECOVERY FUEL COSTS 11,711,658 (18,379,342) (3,333,842) 9 SV - OVER RECOVERY FUEL COSTS 3,847,075 20,669,075 12,258, PROVS POSS REV REFDS 3,750,471 3,750,471 3,750, SALE/LEASE BK RKE SERV CTR LOSS ON DISP OF PROP - SFAS ARO - BK (0) (0) 0 13 SALE/LEASE - GRUNDY 5,306 5,306 5, MTM BK LOSS - A/L - TAX DEFL (82,853) (82,853) (82,853) 15 MARK & SPREAD-DEFL-190-A/L 4,800,980 4,800,980 4,800, PROV WORKERS COMP 62,829 62,829 62, ACCRUED BK SUP SAVINGS PLAN EXP (0) (0) 0 18 SUPPLEMENTAL EXECUTIVE RETIRE PLAN (135,004) (135,004) (135,004) 19 ACCD SUP EXEC RETIR PLAN COSTS-SFAS ,516 33,516 33, ACCRD BK SUP. SAVINGS PLAN EXP 103, , , EMPLOYER SAVINGS PLAN MATCH (0) (0) 0 22 ACCRUED PSI PLAN EXP 307, , , BK PROV UNCOLL ACCTS 4,328,608 4,328,608 4,328, PROV - TRADING CREDIT RISK - A/L 289, , , DEFD COMPENASTION - BOOK EXPENSE 4,986 4,986 4, ACCRD COMPANYWIDE INCENTV PLAN (208,751) (208,751) (208,751) 27 ACCRUED BOOK VACATION PAY 3,749,258 3,749,258 3,749, ACCRUED MGMT INCENTIVE BONUS (124,609) (124,609) (124,609) 29 ACCRD BK SEI EMP BENEFIT COSTS (0) (0) 0 30 ACCRUED BK SEVERANCE BENEFITS (0) (0) 0 31 ACCRUED INTEREST EXPENSE - STATE 1,017,969 1,017,969 1,017, ACCRUED INTEREST-LONG-TERM - FIN 48 1,113,238 (1,003,762) 54, ACCRUED INTEREST-SHORT-TERM - FIN 48 (792,051) (792,051) (792,051) 34 ACCRUED STATE INCOME TAX EXPENSE 1,117,196 1,117,196 1,117, BK DFL RAIL TRANS REV/EXP (177,579) (177,579) (177,579) 36 ACCRUED RTO CARRYING CHARGES DEFERRED RTO EXPENSES & CARRYING CHAR 38 DEFD EQUITY CARRYING CHRGS-ENVIRON COMP COS (0) (0) 0 39 FEDERAL MITIGATION PROGRAMS 4,178,160 5,571,160 4,874, STATE MITIGATION PROGRAMS 2,785,440 2,785,440 2,785, DEFD BK CONTRACT REVENUE 943, , , DEFD STORM DAMAGES Page 21 of 449

22 APPALACHIAN POWER COMPANY ACCUMULATED DEFERRED INCOME TAX IN ACCOUNT 190 PERIOD ENDED DECEMBER 31, 2008 STATEMENT AG-3 PAGE 2 OF 8 DEBIT (CREDIT) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F PER BOOKS NON-APPLICABLE/NON-UTILITY AVERAGE ELECTRIC BALANCE AS BALANCE AS BALANCE AS BALANCE AS UTILITY ACCUMULATED DEFERRED FIT ITEMS OF OF OF OF (B+C+D+E)/2 43 FK BK WRITE-OFF BLUE RIDGE EASE 13,422 13,422 13, FR BK WRITE-OFF BLUE RIDGE EASE 15,660 15,660 15, SV BK WRITE-OFF BLUE RIDGE EASE 99,325 99,325 99, CV BK WRITE-OFF BLUE RIDGE EASE 6,218 6,218 6, DEFD TX LOSS-INTERCO SALE-EMA 26,110 26,110 26, DEFD BOOK GAIN - EPA AUCTION 49 PREPD ROYALTIES BK DEFR 50 ADVANCE RENTAL INC (CUR MO) 512, , , DEFERRED BOOK RENTS 966, , , REG - LIAB - UNREAL MTM GAIN - DEFL 7,043,535 7,043,535 7,043, REG ASSET/LIAB-CENTURY ALUMINUM 368, , , WVA RATE STABILIZATION LIAB 55 CAPITALIZED SOFTWARE COSTS - TAX 4,092 4,092 4, CAPITALIZED ADVERTISING EXP - TAX 1,562,326 1,562,326 1,562, BK DEFL - GAIN REACQUIRED DEBT (7) (7) (7) 58 ACCRD SFAS 106 PST RETIRE EXP 15,543,177 17,470,177 16,506, SFAS 106 PST RETIRE EXP - NON-DEDUCT CONT 4,854,690 4,854,690 4,854, ACCRD OPEB COSTS - SFAS 158 7,506,714 7,506,714 7,506, ACCRD SFAS 112 EMPLOY BEN 5,956,574 5,956,574 5,956, ACCRD BOOK ARO EXPENSE-SFAS ,625,681 14,463,681 14,044, ACCRUED BK REMOVAL COST - ACRS 45,395,202 44,670,202 45,032, DEFD STATE INCOME TAXES 8,568,257 9,569,257 9,068, ACCRD SIT/FRANCHISE TAX RESERVE 638, , , ACCRUED SALES & USE TAX RESERVE 117, , , ACCRD SIT TX RES-LNG-TERM-FIN 48 2,236,872 2,236,872 2,236, SFAS DEFD SIT LIABILITY IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT 1,205,918 1,205,918 1,205, IRS AUDIT SETTLEMENT 604, , , IRS AUDIT SETTLEMENT (2,289,546) (2,289,546) (2,289,546) IRS AUDIT SETTLEMENT 36,165 36,165 36, IRS AUDIT SETTLEMENT 2,202,887 2,202,887 2,202, DEFD FIT - CAPITAL LOSS CARRYBACK (0) (0) NON-UTILITY DEFERRED FIT 1,471,365 1,471,365 (1,471,365) (1,471,365) 0 79 SFAS 109 FLOW-THRU ,891,300 48,891,300 (48,891,300) (48,891,300) 0 80 SFAS 109 EXCESS DFIT ,656,251 1,656,251 (1,656,251) (1,656,251) 0 81 SFAS 133 ADIT FED - SFAS NONAFFIL , ,601 (956,601) (956,601) 0 82 ADIT FED - PENSION OCI NAF ,506,715 7,506,715 (7,506,715) (7,506,715) 0 83 ADIT FED - HEDGE-INTEREST RATE ,537,629 6,537,629 (6,537,629) (6,537,629) 0 84 ADIT FED - HEDGE-FOREIGN EXC , ,508 (102,508) (102,508) 0 85 DEFERRED SIT ,746,296 20,746,296 20,746, TOTAL ACCOUNT ,177, ,170,702 (67,122,370) (67,122,370) 236,051,834 Page 22 of 449

23 APPALACHIAN POWER COMPANY ACCUMULATED DEFERRED INCOME TAX IN ACCOUNT PERIOD ENDED DECEMBER 31, 2008 STATEMENT AG-3 PAGE 3 OF 8 COLUMN A COLUMN G COLUMN H COLUMN I FUNCTIONALIZATION AVERAGE ACCUMULATED DEFERRED FIT ITEMS ACCOUNT 190: 1 BOOK VS. TAX DEPRECIATION 2 INT EXP CAPITALIZED FOR TAX 3 CIAC-BOOK RECEIPTS - DISTR - SV 4 CIAC-BOOK RECEIPTS - TRANS 5 CIAC-BOOK RECEIPTS - DISTR - SW 6 CIAC - MUSSER ACQUISTION 7 CUST ADV INC FOR TA- SV 8 SW - OVER RECOVERY FUEL COSTS 9 SV - OVER RECOVERY FUEL COSTS 10 PROVS POSS REV REFDS 11 SALE/LEASE BK RKE SERV CTR 12 LOSS ON DISP OF PROP - SFAS ARO - BK 13 SALE/LEASE - GRUNDY 14 MTM BK LOSS - A/L - TAX DEFL 15 MARK & SPREAD-DEFL-190-A/L 16 PROV WORKERS COMP 17 ACCRUED BK SUP SAVINGS PLAN EXP 18 SUPPLEMENTAL EXECUTIVE RETIRE PLAN 19 ACCD SUP EXEC RETIR PLAN COSTS-SFAS ACCRD BK SUP. SAVINGS PLAN EXP 21 EMPLOYER SAVINGS PLAN MATCH 22 ACCRUED PSI PLAN EXP 23 BK PROV UNCOLL ACCTS 24 PROV - TRADING CREDIT RISK - A/L 25 DEFD COMPENASTION - BOOK EXPENSE 26 ACCRD COMPANYWIDE INCENTV PLAN 27 ACCRUED BOOK VACATION PAY 28 ACCRUED MGMT INCENTIVE BONUS 29 ACCRD BK SEI EMP BENEFIT COSTS 30 ACCRUED BK SEVERANCE BENEFITS 31 ACCRUED INTEREST EXPENSE - STATE 32 ACCRUED INTEREST-LONG-TERM - FIN ACCRUED INTEREST-SHORT-TERM - FIN ACCRUED STATE INCOME TAX EXPENSE 35 BK DFL RAIL TRANS REV/EXP 36 ACCRUED RTO CARRYING CHARGES 37 DEFERRED RTO EXPENSES & CARRYING CHAR 38 DEFD EQUITY CARRYING CHRGS-ENVIRON COMP COS 39 FEDERAL MITIGATION PROGRAMS 40 STATE MITIGATION PROGRAMS 41 DEFD BK CONTRACT REVENUE 42 DEFD STORM DAMAGES GENERATION TRANSMISSION DISTRIBUTION 0 20, ,200,195 10,884,127 4,922, ,604 9,816, ,253, ,077 3,803, , (3,333,842) ,258, (0) 2,941, , (0) ,306 (82,853) 0 0 4,800,98 15,445 13,238 34,145 0 (0) (135,059) (117) 0 33,633 99, , (0) 111, , ,161 1,136,654 2,662, , ,986 (91,114) (178,239) 60,603 1,721, ,061 1,719,715 (4,107) 0 (120,502) (0) 0 0 (1) , , ,821 14,350 15,989 24,400 (395,850) (158,481) (237,720) 351,639 55, ,806 (177,579) (0) 0 0 4,874,66 2,785,44 (0) 943, Page 23 of 449

24 APPALACHIAN POWER COMPANY ACCUMULATED DEFERRED INCOME TAX IN ACCOUNT PERIOD ENDED DECEMBER 31, 2008 STATEMENT AG-3 PAGE 4 OF 8 COLUMN A COLUMN G COLUMN H COLUMN I FUNCTIONALIZATION AVERAGE ACCUMULATED DEFERRED FIT ITEMS 43 FK BK WRITE-OFF BLUE RIDGE EASE 44 FR BK WRITE-OFF BLUE RIDGE EASE 45 SV BK WRITE-OFF BLUE RIDGE EASE 46 CV BK WRITE-OFF BLUE RIDGE EASE 47 DEFD TX LOSS-INTERCO SALE-EMA 48 DEFD BOOK GAIN - EPA AUCTION 49 PREPD ROYALTIES BK DEFR 50 ADVANCE RENTAL INC (CUR MO) 51 DEFERRED BOOK RENTS 52 REG - LIAB - UNREAL MTM GAIN - DEFL 53 REG ASSET/LIAB-CENTURY ALUMINUM 54 WVA RATE STABILIZATION LIAB 55 CAPITALIZED SOFTWARE COSTS - TAX 56 CAPITALIZED ADVERTISING EXP - TAX 57 BK DEFL - GAIN REACQUIRED DEBT 58 ACCRD SFAS 106 PST RETIRE EXP 59 SFAS 106 PST RETIRE EXP - NON-DEDUCT CONT 60 ACCRD OPEB COSTS - SFAS ACCRD SFAS 112 EMPLOY BEN 62 ACCRD BOOK ARO EXPENSE-SFAS ACCRUED BK REMOVAL COST - ACRS 64 DEFD STATE INCOME TAXES 65 ACCRD SIT/FRANCHISE TAX RESERVE 66 ACCRUED SALES & USE TAX RESERVE 67 ACCRD SIT TX RES-LNG-TERM-FIN SFAS DEFD SIT LIABILITY IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT 75 DEFD FIT - CAPITAL LOSS CARRYBACK NON-UTILITY DEFERRED FIT 79 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT SFAS 133 ADIT FED - SFAS NONAFFIL ADIT FED - PENSION OCI NAF ADIT FED - HEDGE-INTEREST RATE ADIT FED - HEDGE-FOREIGN EXC DEFERRED SIT TOTAL ACCOUNT 190 GENERATION TRANSMISSION DISTRIBUTION 13, ,66 99, , ,11 3, , , ,043, ,762 2,000 (3) 2, ,562,326 0 (9,092) (10,212) 19,297 6,375,431 1,034,164 9,097,082 1,951, ,750 2,526,752 2,837, ,521 4,162,040 2,866, ,588 2,433,890 13,512, ,273 2,477,272 14,963,037 27,592,394 2,794,449 2,774,259 3,500, ,59 47, ,895 2,009,937 90, , ,205, , (2,289,546) , ,202, (0) 20,746, ,794,768 40,363,260 77,893,804 Page 24 of 449

25 APPALACHIAN POWER COMPANY ACCUMULATED DEFERRED INCOME TAX IN ACCOUNT PERIOD ENDED DECEMBER 31, 2008 STATEMENT AG-3 PAGE 5 OF 8 COLUMN A COLUMN J COLUMN K COLUMN L FUNCTIONALIZATION 12/31/07 ACCUMULATED DEFERRED FIT ITEMS ACCOUNT 190: 1 BOOK VS. TAX DEPRECIATION 2 INT EXP CAPITALIZED FOR TAX 3 CIAC-BOOK RECEIPTS - DISTR - SV 4 CIAC-BOOK RECEIPTS - TRANS 5 CIAC-BOOK RECEIPTS - DISTR - SW 6 CIAC - MUSSER ACQUISTION 7 CUST ADV INC FOR TA- SV 8 SW - OVER RECOVERY FUEL COSTS 9 SV - OVER RECOVERY FUEL COSTS 10 PROVS POSS REV REFDS 11 SALE/LEASE BK RKE SERV CTR 12 LOSS ON DISP OF PROP - SFAS ARO - BK 13 SALE/LEASE - GRUNDY 14 MTM BK LOSS - A/L - TAX DEFL 15 MARK & SPREAD-DEFL-190-A/L 16 PROV WORKERS COMP 17 ACCRUED BK SUP SAVINGS PLAN EXP 18 SUPPLEMENTAL EXECUTIVE RETIRE PLAN 19 ACCD SUP EXEC RETIR PLAN COSTS-SFAS ACCRD BK SUP. SAVINGS PLAN EXP 21 EMPLOYER SAVINGS PLAN MATCH 22 ACCRUED PSI PLAN EXP 23 BK PROV UNCOLL ACCTS 24 PROV - TRADING CREDIT RISK - A/L 25 DEFD COMPENASTION - BOOK EXPENSE 26 ACCRD COMPANYWIDE INCENTV PLAN 27 ACCRUED BOOK VACATION PAY 28 ACCRUED MGMT INCENTIVE BONUS 29 ACCRD BK SEI EMP BENEFIT COSTS 30 ACCRUED BK SEVERANCE BENEFITS 31 ACCRUED INTEREST EXPENSE - STATE 32 ACCRUED INTEREST-LONG-TERM - FIN ACCRUED INTEREST-SHORT-TERM - FIN ACCRUED STATE INCOME TAX EXPENSE 35 BK DFL RAIL TRANS REV/EXP 36 ACCRUED RTO CARRYING CHARGES 37 DEFERRED RTO EXPENSES & CARRYING CHAR 38 DEFD EQUITY CARRYING CHRGS-ENVIRON COMP COS 39 FEDERAL MITIGATION PROGRAMS 40 STATE MITIGATION PROGRAMS 41 DEFD BK CONTRACT REVENUE 42 DEFD STORM DAMAGES GENERATION TRANSMISSION DISTRIBUTION 0 20, ,844,195 10,667,627 4,978, ,604 9,335, ,253, ,077 3,329, , ,711, ,847, (0) 2,941, , (0) ,306 (82,853) 0 0 4,800,98 15,445 13,238 34,145 0 (0) (135,059) (117) 0 33,633 99, , (0) 111, , ,161 1,136,654 2,662, , ,986 (91,114) (178,239) 60,603 1,721, ,061 1,719,715 (4,107) 0 (120,502) (0) 0 0 (1) , , , , , ,400 (395,850) (158,481) (237,720) 351,639 55, ,806 (177,579) (0) 0 0 4,178,16 2,785,44 (0) 943, Page 25 of 449

26 APPALACHIAN POWER COMPANY ACCUMULATED DEFERRED INCOME TAX IN ACCOUNT PERIOD ENDED DECEMBER 31, 2008 STATEMENT AG-3 PAGE 6 OF 8 COLUMN A COLUMN J COLUMN K COLUMN L FUNCTIONALIZATION 12/31/07 ACCUMULATED DEFERRED FIT ITEMS 43 FK BK WRITE-OFF BLUE RIDGE EASE 44 FR BK WRITE-OFF BLUE RIDGE EASE 45 SV BK WRITE-OFF BLUE RIDGE EASE 46 CV BK WRITE-OFF BLUE RIDGE EASE 47 DEFD TX LOSS-INTERCO SALE-EMA 48 DEFD BOOK GAIN - EPA AUCTION 49 PREPD ROYALTIES BK DEFR 50 ADVANCE RENTAL INC (CUR MO) 51 DEFERRED BOOK RENTS 52 REG - LIAB - UNREAL MTM GAIN - DEFL 53 REG ASSET/LIAB-CENTURY ALUMINUM 54 WVA RATE STABILIZATION LIAB 55 CAPITALIZED SOFTWARE COSTS - TAX 56 CAPITALIZED ADVERTISING EXP - TAX 57 BK DEFL - GAIN REACQUIRED DEBT 58 ACCRD SFAS 106 PST RETIRE EXP 59 SFAS 106 PST RETIRE EXP - NON-DEDUCT CONT 60 ACCRD OPEB COSTS - SFAS ACCRD SFAS 112 EMPLOY BEN 62 ACCRD BOOK ARO EXPENSE-SFAS ACCRUED BK REMOVAL COST - ACRS 64 DEFD STATE INCOME TAXES 65 ACCRD SIT/FRANCHISE TAX RESERVE 66 ACCRUED SALES & USE TAX RESERVE 67 ACCRD SIT TX RES-LNG-TERM-FIN SFAS DEFD SIT LIABILITY IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT IRS AUDIT SETTLEMENT 75 DEFD FIT - CAPITAL LOSS CARRYBACK NON-UTILITY DEFERRED FIT 79 SFAS 109 FLOW-THRU SFAS 109 EXCESS DFIT SFAS 133 ADIT FED - SFAS NONAFFIL ADIT FED - PENSION OCI NAF ADIT FED - HEDGE-INTEREST RATE ADIT FED - HEDGE-FOREIGN EXC DEFERRED SIT TOTAL ACCOUNT 190 GENERATION TRANSMISSION DISTRIBUTION 13, ,66 99, , ,11 3, , , ,043, ,762 2,000 (3) 2, ,562,326 0 (9,092) (10,212) 19,297 5,989, ,664 8,581,082 1,951, ,750 2,526,752 2,837, ,521 4,162,040 2,866, ,588 2,433,890 13,107, ,773 2,478,772 15,094,037 27,822,394 2,606,449 2,614,759 3,347, ,59 47, ,895 2,009,937 90, , ,205, , (2,289,546) , ,202, (0) 20,746, ,679,768 40,368,260 77,007,304 Page 26 of 449