states and eastern Canada, and approximately 11 percent ofthe electricity demand in ERCOT, the transmission system that covers much ofTexas. EDTtoday at http:// The webcast will include audio andvisuals of charts and graphics referred to by AEP management. Other Operating Revenue - The increase in Other Operating Revenue duringfirst-quarter 2009 compared with first-quarter 2008 is primarily because ofthe accidental outage insurance payments related to the fire at the CookNuclear Plant. A portion of these insurance proceeds are offsetting higherfuel costs.Operations & Maintenance Expense - Operations and Maintenance expenses infirst-quarter 2009 were $56 million higher than in first-quarter 2008primarily because of storm expenses in 2009 and the establishment of aregulatory asset in 2008 to recover storm expenses incurred by Public ServiceCompany of Oklahoma. Transmission Revenues - Transmission revenues were higher in first-quarter2009 primarily due to increased Southwest Power Pool revenues. SUMMARY ONGOING RESULTS BY SEGMENT$ in millions except EPS Q1 08 Q1 09VarianceUtility Operations 410 343 (67) Ongoing EPS1.020.84 (0.18)AEP River Operations 711 4 Ongoing EPS0.020.030.01Generation and Marketing 12423 Ongoing EPS0.000.060.06All Other (8)(18)(10) Ongoing EPS (0.02)(0.04)(0.02)Ongoing Earnings 410 360 (50)Ongoing EPS 1.020.89 (0.13)EPS based on 401mm shares in Q1 2008, 407mm in Q1 2009Ongoing earnings from Utility Operations decreased by $67 million during thefirst quarter of 2009 compared with the same period in 2008 as the result oflower sales to industrial customers, lower off-system sales and higheroperating expenses. More important, our extraordinarilysuccessful equity offering in early April, netting proceeds of approximately$1.64 billion, will allow us to pay down debt and strengthen our balance sheetso that we are well-positioned to adjust our plan and accelerate capitalinvestment and earnings growth as the economy rebounds," Morris said.

With depreciation of approximately $1.2 billion per year, our plannedcapital spend of $6.2 billion through 2011 still will provide earnings growthof 2 to 4 percent over the next few years. We aremaintaining our planned $2.6 billion capital spend in 2009 but havesignificantly cut our 2010 capital budget to $1.8 billion from a planned $3.4billion. "We are taking proactive steps to manage these negative impacts. Additionally,we are seeing declines in industrial usage averaging 15 percent throughout ourservice area.

Declining demand across the country combined with the lowest naturalgas prices in years is significantly impacting the volume and price we canrealize for the excess generation we sell into the marketplace. "However, these positives are not enough to offset the significant negativeimpacts from declining industrial load and off-system sales margins andvolumes. Our operations and maintenance expensesare a little higher year-over-year because of storm expenses, but we are ontrack to keep them flat with 2008 levels. "Residentialsales remain reasonably strong, and we will continue to benefit from positiverate decisions at several of our operating companies, including $679 millionin rate decisions already this year. Therefore, AEP is not able to provide a correspondingGAAP equivalent for earnings guidance."But for the negative impact of the economic downturn, our performance in thebeginning of 2009 would reflect very positively on our earnings," said MichaelG Morris, AEP chairman, president and chief executive officer.

AEP management is not able to estimate the impact, if any, on GAAPearnings of these items. In providing ongoing earnings guidance,there could be differences between ongoing earnings and GAAP earnings formatters such as, but not limited to, divestitures or changes in accountingprinciples. Dan Haren pitched well (6 Innings, 3 Hits, 2 Runs, 7 Ks), but took the loss.Images courtesy of Icon SMI. Andrew Miller allowed 2 Runs in 6 Innings for his 2nd Win.Jon Lester allowed 1 Run in 6 Innings with 5 Ks for his 2nd Win.Tim Redding allowed 1 Run in 6-1/3 Innings with 5 Ks to improve to 4-2.Tim Linceum allowed 4 unearned runs in 6 Innings with 5 Ks and a no-decision.Aaron Cook gave up 2 Runs in 7-2/3 Innings to improve to 5-1 with a 2.40 ERA.Johan Santana gave up 1 Run in 6 Innings with 8 Ks for a no-decision. Aaron Laffey pitched well (7 Innings, 1 unearned run) but took the loss.Roy Halladay didn’t pitch a Complete Game (7-1/3 Innings, 1 Earned Run, 7 Ks), but he did get the Win.