Allegheny Power 2011 Annual Report Download - page 34
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19
The acquisition of the Allegheny companies resulted in the inclusion of the following operating expenses in 2011:
Operating Expenses - Allegheny
Purchased power
Fuel
Transmission
Amortization of regulatory assets, net
Pensions and OPEB mark-to-market
adjustment
Other operating expenses
General taxes
Depreciation expense
Total Operating Expenses
In Millions
$ 1,146
268
120
(21)
76
259
109
163
$ 2,120
Other Expense —
Other expense increased $59 million in 2011 due to interest expense on debt of the Allegheny companies partially offset by higher
investment income on OE's and TE's nuclear decommissioning trusts and increased capitalized interest.
Regulated Independent Transmission — 2011 Compared with 2010
Net income increased by $58 million in 2011 compared to 2010 due to earnings associated with TrAIL and PATH of $79 million,
partially offset by decreased earnings for ATSI of $20 million.
Revenues —
Total revenues increased by $149 million principally due to revenues from TrAIL and PATH, which were acquired as part of the
merger with Allegheny, partially offset by a decrease in ATSI revenues due to the transition from MISO to PJM and the completion
of vegetation management cost recovery in May 2011.
Revenues by transmission asset owner are shown in the following table:
Revenues by Transmission
Asset Owner
ATSI
TrAIL
PATH
Total Revenues
2011
(In millions)
$ 207
170
14
$ 391
2010
$ 242
—
—
$ 242
Increase
(Decrease)
$ (35)
170
14
$ 149
Operating Expenses —
Total operating expenses increased by $33 million principally due to the addition of TrAIL and PATH in 2011.
Other Expense —
Other expense increased $24 million in 2011 due to additional interest expense associated with TrAIL.
Competitive Energy Services — 2011 Compared to 2010
Net income increased by $166 million in 2011 compared to 2010. The increase in net income was primarily due to a $569 million
gain ($358 million net of tax) on the partial sale of FEV's interest in Signal Peak in 2011 and decreased impairments of long-lived
assets. Partially offsetting this was a decrease in sales margins of $193 million, a $66 million increase in interest expense and a
$55 million decrease in capitalized interest compared to 2010.
Revenues —
Total revenues increased $1.3 billion in 2011 compared to 2010, primarily due to an increase in direct and governmental aggregation
sales and the inclusion of the Allegheny companies, partially offset by a decline in POLR and structured sales.