AEP revenue rose in 2010 but profit d...

AEP revenue rose in 2010 but profit declined | The Columbus Dispatch

There are 18 comments on the Columbus Dispatch story from Jan 28, 2011, titled AEP revenue rose in 2010 but profit declined | The Columbus Dispatch. In it, Columbus Dispatch reports that:

American Electric Power had an increase in sales and drop in profit last year. The Columbus-based utility had $14.4 billion in sales, up from $13.5 billion the prior year, and $1.2 billion in profit, down from $1.4 billion, according to results released this morning.

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Progressive Ohioan

Columbus, OH

#1 Jan 28, 2011
A loss of .2 billion on revenues of 14 billion? These corporations have a nerve crying about not making enough money.
cld

Columbus, OH

#2 Jan 28, 2011
AEP is a rip-off. I paid $300 per month in July & August so I could run my A/C in a 1025 square foot townhouse.

A monopoly and a rip-off.
Guy Average

Columbus, OH

#3 Jan 28, 2011
The profit margin is going down because the electric companies are having to comply with EPA carbon control regulations already. They are building things such as underground storage areas for carbon dioxide (as a byproduct of power plant production) which costs tons of money, all of which cuts into profit and will ultimately be paid for by the consumer. Obama promised that your rates will "skyrocket", and they will because all costs will have to be passed on to the consumer in the form of higher rates or government bailouts, or both. To hear Obama's prediction about your electric rates, see the video at this link:
happy days R here again

Roy, WA

#5 Jan 28, 2011
Let's cut the crap of double speak in this article..what they mean is..

Rates go up
Service goes down

blah..blah..blah...

When the lights go on again...all over the world (Friday Night Lights).
open a window instead

Roy, WA

#6 Jan 28, 2011
Hey..it was no sweat off of my back...what you should of done is stolen the copper from your neighbor's AC & sold the copper to pay your bill...heck..just steal his AC.
cld wrote:
AEP is a rip-off. I paid $300 per month in July & August so I could run my A/C in a 1025 square foot townhouse.
A monopoly and a rip-off.
The OH Life

Columbus, OH

#7 Jan 28, 2011
cld wrote:
AEP is a rip-off. I paid $300 per month in July & August so I could run my A/C in a 1025 square foot townhouse.
A monopoly and a rip-off.
You're whining over $300 to run the A/C?? Haha... That sounds pretty normal to me. What are YOU complaining about???
The OH Life

Columbus, OH

#8 Jan 28, 2011
Guy Average wrote:
The profit margin is going down because the electric companies are having to comply with EPA carbon control regulations already. They are building things such as underground storage areas for carbon dioxide (as a byproduct of power plant production) which costs tons of money, all of which cuts into profit and will ultimately be paid for by the consumer. Obama promised that your rates will "skyrocket", and they will because all costs will have to be passed on to the consumer in the form of higher rates or government bailouts, or both. To hear Obama's prediction about your electric rates, see the video at this link: http://www.youtube.com/watch?v =HlTxGHn4sH4XX
You're actually right, because of Obama and his over-excessive environmental policies, we all are going to pay more. The cost increases that occur to comply with regulation get passed down to us, and he knows it. Utilities are supposed to pass this cost to the customers, that's the law. It's just another way for the Feds to pay for its agenda. Wonder why the manufacturing base has decreased in the U.S.? This is one reason, energy is way more expensive than it is in Asia because of government regulation. If you want to point a finger, point it at Washington. It's only going to get worse. The utilities are only doing what the government has told them to do.
Homer

Columbus, OH

#9 Jan 28, 2011
The OH Life wrote:
<quoted text>
You're whining over $300 to run the A/C?? Haha... That sounds pretty normal to me. What are YOU complaining about???
I have a 1400 sq. foot house. I also ran the AC and my bill was about $115/ mo. in July and August. I keep it on 76, and I have decent windows. I don't know if that makes a big difference but I also have AEP, so that sounds high to me.
Columbus

Columbus, OH

#10 Jan 28, 2011
Don't you idiots see what's going on here? They do not want to pay the meagre amount that they are stipulated to pay their customers for making excessinve profits. Read all the articles put out by Columbus Dispatch in the last few months wherein they have indicated that the company made excessive profits and that PUCO was making them pay it back to customers. Now all of a sudden, this crap that they did not make profits - is put out there - all of this is a lie - just to avoid paying the customers back for making excessive profits....

They are counting on our forgetfulness. I do have copies of all the articles that the Dispatch put out in the last few months showing the excess (excessive) profit that the company made and how there may be refunds coming to its customers.
The OH Life

Columbus, OH

#11 Jan 28, 2011
Columbus wrote:
Don't you idiots see what's going on here? They do not want to pay the meagre amount that they are stipulated to pay their customers for making excessinve profits. Read all the articles put out by Columbus Dispatch in the last few months wherein they have indicated that the company made excessive profits and that PUCO was making them pay it back to customers. Now all of a sudden, this crap that they did not make profits - is put out there - all of this is a lie - just to avoid paying the customers back for making excessive profits....
They are counting on our forgetfulness. I do have copies of all the articles that the Dispatch put out in the last few months showing the excess (excessive) profit that the company made and how there may be refunds coming to its customers.
Haha... what are you talking about. This is a big publicly traded company, so not only are their statements reviewed by the PUCO, by one of the major auditing, but also by the SEC. Getting by all three of those agencies is pretty tough (not impossible, but tough). You can soon find their financials online, I believe a company typically as their 10-K available after a couple months, and they have been audited.
As far as the profits go, the PUCO made a big mistake and opened the door for lawsuits against companies that make profits outside their customer base. Utilities get their rate approval BASED ON THEIR CUSTOMERS BASE. When you take into consideration AEP's Columbus & Southern company, they made profits right in line with all the other utilties (I believe approx 12%). But when you consider outside of its territory, it made 22% because it produced EXTRA electricity that was needed by other companies that was not available through their normal electric provider. These kind of "outside" sales are sales that company does not rely on, because this extra electricity may not be needed in the future. We didn't get scammed, you and I didn't provide AEP with the "excessive profits", it came from outside its base.
Working Man

Reynoldsburg, OH

#12 Jan 28, 2011
Why doesnt Kasich make the utility companies provide consumers with environmental compliance costs on each billing statement? Once people get educated about the true costs of these pie in the sky mandates, the pace of new environmental regulations will slow to a crawl.
unfortunately

Columbus, OH

#13 Jan 28, 2011
Columbus wrote:
Don't you idiots see what's going on here? They do not want to pay the meagre amount that they are stipulated to pay their customers for making excessinve profits. Read all the articles put out by Columbus Dispatch in the last few months wherein they have indicated that the company made excessive profits and that PUCO was making them pay it back to customers. Now all of a sudden, this crap that they did not make profits - is put out there - all of this is a lie - just to avoid paying the customers back for making excessive profits....
They are counting on our forgetfulness. I do have copies of all the articles that the Dispatch put out in the last few months showing the excess (excessive) profit that the company made and how there may be refunds coming to its customers.
Unfortunately, the Australian floods changed all that. They caused a big spike in the price of coal, which is expected to last about 2 years. So they have justification for an increase now.
Sterling Silver

Columbus, OH

#14 Jan 28, 2011
Working Man wrote:
Why doesnt Kasich make the utility companies provide consumers with environmental compliance costs on each billing statement? Once people get educated about the true costs of these pie in the sky mandates, the pace of new environmental regulations will slow to a crawl.
It's already online. Just go to AEP's website, and look up the tariff for your area, and it breaks down all the per KWH costs of everything.
Read First

Nashport, OH

#15 Jan 28, 2011
Columbus wrote:
Don't you idiots see what's going on here? They do not want to pay the meagre amount that they are stipulated to pay their customers for making excessinve profits. Read all the articles put out by Columbus Dispatch in the last few months wherein they have indicated that the company made excessive profits and that PUCO was making them pay it back to customers. Now all of a sudden, this crap that they did not make profits - is put out there - all of this is a lie - just to avoid paying the customers back for making excessive profits....
They are counting on our forgetfulness. I do have copies of all the articles that the Dispatch put out in the last few months showing the excess (excessive) profit that the company made and how there may be refunds coming to its customers.
You obviously either didn't read the article, or are just too dense to comprehend. They took a $43 million charge in the fourth quarter to settle the excessive earnings case with the PUCO. Second, they made $1.2 billion in profit....PROFIT means that they MADE money,not lost it. Given your superior grasp of finance, you obviously work for the government.
cld

Columbus, OH

#16 Jan 31, 2011
Homer wrote:
<quoted text>
I have a 1400 sq. foot house. I also ran the AC and my bill was about $115/ mo. in July and August. I keep it on 76, and I have decent windows. I don't know if that makes a big difference but I also have AEP, so that sounds high to me.
I know, it is excessive. we are getting new windows this spring, they are on order. Hope it will help, and it was double AEP cost than it was in summer of 2009. So, I think I have a legimate complaint.....
cld

Columbus, OH

#17 Jan 31, 2011
The OH Life wrote:
<quoted text>
You're whining over $300 to run the A/C?? Haha... That sounds pretty normal to me. What are YOU complaining about???
Not, whining, I am complaining. It was double what it was in 2009. Have new windows coming so I hope that will help. I have never had an electric bill that high and have been in my place over 5 years, so I do have something to complain about...mostly that AEP is a rip-off. KMA
The OH Life

Columbus, OH

#18 Jan 31, 2011
cld wrote:
<quoted text>
Not, whining, I am complaining. It was double what it was in 2009. Have new windows coming so I hope that will help. I have never had an electric bill that high and have been in my place over 5 years, so I do have something to complain about...mostly that AEP is a rip-off. KMA
Glad to hear you're doing something about, too many people complain but won't cut back or insulate their homes. If people only new how poorly insulated many homes are and how much electricity is wasted because of this. That's odd that the bill is suddenly and significantly that high, rate increases are rarely shockers, the PUCO tries to prevent that from happening. I notice on my bill sometimes bills are estimate, and the difference is made up with an actual reading the following month. Maybe your bill from prior was an estimate and the company is making up the difference this month.

FYI - I just had my home assessed for $25 from GridSmartOhio. They'll come in, take a look and show you where you are losing heat, poor insulation, etc. I even got a free shower head, a programable thermostat and energy efficient bulbs. In the end, you can get discounts to better insulate your home. Something to look into before doing it on your own, might save a few dollars.
Just maybe

Charleston, WV

#19 Jan 31, 2011
Maybe there profits didn't go as high as there gross because they could be doin something wrong inhouse? To many pay raises or who knows over paying for the upgrades that the goverment wants them to do? Maybe the improvments cost that much.

But wait that means if thats the case then whats the rate hike for? If everything stays the same wont there profits go way up?

Why don't the goverment put a stop to this and break the company into parts like they would if it was a normal store?

"A government-granted monopoly or legal monopoly, by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group." from http://en.wikipedia.org/wiki/Monopoly

So as long as we agree to it this electric company is legal.

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