Chicagoland Investors Expo

Chicago, ILMarch 2, 2013

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 RegistrantSubsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomesand results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-lookingstatements are: the economic climate and growth in or contraction within and changes in market demand and demographic patterns in our service territory, inflationary ordeflationary interest rate trends, volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developmentsimpairing 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 capitalneeds, 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 impactof retail competition, particularly in Ohio, weather conditions, including storms and drought conditions, and our ability to recover significant storm restoration costs throughapplicable 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 regulatedor competitive electric rates, our ability to build or acquire generating capacity, and transmission lines and facilities (including our ability to obtain any necessary regulatoryapprovals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are cancelled) through applicable ratecases or competitive rates, new legislation, litigation and government regulation including oversight of nuclear generation, energy commodity trading and new orheightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances or additional regulation of fly ash andsimilar combustion products that could impact the continued operation and cost recovery of our plants and related assets, evolving public perception of the risksassociated 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 anaccelerated return of deferred federal income taxes to customers, timing and resolution of pending and future rate cases, negotiations and other regulatory decisionsincluding rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance, resolution of litigation, our ability toconstrain operation and maintenance costs, our ability to develop and execute a strategy based on a view regarding prices of electricity, coal, natural gas and otherenergy-related commodities, prices and demand for power that we generate and sell at wholesale, changes in technology, particularly with respect to new, developing oralternative sources of generation, our ability to recover through rates or market prices any remaining unrecovered investment in generating units that may be retired beforethe end of their previously projected useful lives, volatility and changes in markets for electricity, natural gas, and other energy-related commodities, changes in utilityregulation, including the implementation of ESPs and the transition to market and expected legal separation for generation in Ohio and the allocation of costs withinregional transmission organizations, including PJM and SPP, our ability to successfully manage negotiations with stakeholders and obtain regulatory approval to terminatethe Interconnection Agreement, changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energytrading 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 byour pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact on future funding requirements, accountingpronouncements periodically issued by accounting standard-setting bodies and other risks and unforeseen events, including wars, the effects of terrorism (includingincreased security costs), embargoes, cyber security threats and other catastrophic events

Investor Relations Contacts

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Bette Jo RozsaManaging DirectorInvestor Relations

614-716-2840bjrozsa@aep.com

Julie SherwoodDirector

Investor Relations614-716-2663

jasherwood@aep.com

Sara MaciochAnalyst

Investor Relations614-716-2835

semacioch@aep.com 2

American Electric Power

� Predominantly regulated business focused on clarity, execution, line-of-sight and discipline

� Significant transmission growth opportunities

� Stable regulatory relationships

� Rationalized cost structure

� Dividend growth supported by regulated earnings with a strong balance sheet

� Ohio generation fleet and related retail and wholesale marketing business well-positioned for success in a competitive market

Serving 5.3 million electric customers in 11 states

AEP Fast Facts

$14.9B Revenues *$1.3B Net Income *

BBB-/Baa2/BBB senior unsecured credit rating **

* represents GAAP results for 2012

** S&P/Moody’s/Fitch

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AEP Return and Stock Statistics

Total Shareholder Returnas of Dec. 31, 2012

Strong historic stock performance with a competitive dividend yield

AEP

S&P 500 Electric Utilities Index

S&P 500

1 Year 3 Year 5 Year

� Closing Price: $46.79

� 52 Week Range: $36.97 - $47.03

� Market Capitalization: $22.7 billion

� Annual Dividend: $1.88/share

� Dividend yield: 4.0%

� AEP 2013 P/E Multiple: 14.8

� AEP 2014 P/E Multiple: 14.1

� Wall Street Analyst Coverage – 11 Buys, 13 Holds

Stock Statistics as of Feb. 28, 2013

Twelve Months Ended 12/31/12 Proforma* Earned ROEs* pro-forma adjusts GAAP results by eliminating any material nonrecurring items and is not weather normalized

Utility Operations ROE of 10.6% as of December 31, 2012

Highly Diversified Regulated Utility Platform

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Customers:

Employees:

Total Assets:

960,000

2,128

$10.5B

584,000

2,649

$7.8B

173,000

392

$1.6B

1,459,000

3,131

$13.0B

535,000

1,127

$3.3B

524,000

1,472

$6.3B

986,000

1,315

$6.9B

Coal/Lignite Controlled

50%

Natural Gas/Oil27%

Demand Response/Energy

Efficiency7%

Nuclear6%

Pumped Storage/Wind/Hydro/Solar

10%

Coal/Lignite Controlled

35%

Coal/Lignite Uncontrolled

15%

Coal/Lignite Announced Retirements

14%

Natural Gas/Oil

25%

Nuclear7%

Pumped Storage/Wind/ Hydro/Solar

4%

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Generation Fleet

2020 Generation Capacity

by Fuel Type

Based on 39,740 MW

2013 Generation Capacity

by Fuel Type

Based on 37,594 MW

We are investing $4-5 billion to transform our fleet over the next several years

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Transmission Holdco Business Growth

Cumulative Transmission Holdco Net Property, Plant & Equipment

Note: 2013 annual depreciation is $9M; Transmission JV investments, other than Transource, are not reflected above as the ventures are not consolidated on AEP’s financial statements

2010 Net PP&E = $50M124% CAGR in Net Transmission Holdco PP&E

Expected growth in EPS contribution closely tied to growing capital investment

$0.3

$0.7

$1.4

$2.2

$2.8

AEP Transmission Holdco(excluding unconsolidated JVs)

� Transcos and TransourceRegulated by FERC

� Revenue requirement reset annually based on prior year’s activity plus the current year’s projected plant-in-service balances, reducing regulatory lag

� Transcos: ROEs 11.49% (PJM) / 11.20% (SPP)

� Transource: 86% ownership; capital investment begins in 2014

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Ohio Business in Transition

Targeting corporate separation implementation on January 1, 2014

� Customer choice for generation service has been in place since 2000

� Ohio Power has experienced increased customer shopping for generation service over the past two years with 51percent of the load switched as of December 31, 2012

� Recent PUCO orders address the transition of Ohio Power generation to the competitive market

Dividend Policy

� Dividend statistics- Current yield: 4.0%- Current quarterly payment: $0.47/share- Current payout ratio: 59.7%- Growth of 3.8% per annum since 2004- Paid 410 consecutive quarters

� In January 2013, board increased targeted payout ratio to 60 – 70% of consolidated earnings

� Dividend level supported by earnings from regulated operations

� Dividend expected to grow in line with earnings from regulated operations

Board increased targeted payout ratio to 60-70 percent

Dividend History Since 2004$/share

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Expected EPS Growth Rate

4 – 6% Operating Earnings Per Share Growth Rate

$3.05

$3.15

$3.25

$3.35

$3.45

$3.55

2013E 2014E

4%

6%

$3.05 - $3.25

$3.15 - $3.45

Expected Operating Earnings Per Share Growth Rate

� Expected EPS growth rate of 4 –6% off of 2013 operating earnings guidance range

� Supported by rate base growth of regulated operations

- Capital investment of $3.6B in 2013 and $3.8B in 2014 and 2015

- Priority allocation of capital to transmission investment

- Authorized ROE range of 9.96% (AEP Texas) to 12.8% (Prairie Wind JV)

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AEP’s Financial Strength

AEP Corporate Credit Ratings

12/31/2011

4.6x

19.9%

4.5x

18.7%

S&P Moody's Fitch

BBB (Stable) Baa2 (Stable) BBB (Negative)

Credit Metrics

Debt to Capitalization

55.2%55.3%

12/31/2012

FFO to Interest

Coverage

FFO to Debt

Balance sheet stable at mid-50% debt to capitalization ratio

Liquidity Summary

� AEP has two core credit facilities available:

- $1.75 billion core credit facility due June 2016

- $1.75 billion core credit facility due July 2017

� AEP also has a $1 billion interim credit facility due May 2015 to fund certain Ohio Power maturities during the transition

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AEP Investment Opportunity

� Clear regulated business model defines AEP

- Stable income and cash flows- Significant investment opportunities

in infrastructure upgrades to improve reliability and operations

- Diversified across 11 jurisdictions- Critical mass in transmission for

future growth

� Creating a path for a successful competitive business

� Stable dividend with an attractive yield, supported by earnings from regulated operations

� Strong balance sheet

� Anticipated equity needs met through dividend reinvestment program, securitization and bonus depreciation

� Expected earnings growth rate of 4 –6% off 2013 base

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Questions

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