Allegheny Power 2013 Annual Report Download - page 35

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20
• Other operating expenses decreased $353 million primarily due to:
• a decrease in energy efficiency program expenses of $40 million resulting from the completion of certain initiatives
in Ohio and Pennsylvania, which are recoverable through rates;
• lower distribution operating and maintenance expenses of $363 million due to lower storm related maintenance
activities during 2013 compared to 2012. Maintenance costs in 2012 related to Hurricane Sandy and the "derecho"
wind storm totaled $386 million;
• higher transmission expenses of $50 million primarily due to PJM transmission costs associated with RMR units.
• Pension and OPEB mark-to-market charges decreased $541 million, primarily reflecting a higher discount rate to measure
related obligations in 2013.
• Depreciation expense increased by $48 million due to a higher asset base.
• Deferral of storm costs decreased by $370 million primarily related to the absence of storm restoration expenses associated
with Hurricane Sandy and the "derecho" wind storm.
• Net regulatory asset amortization increased $224 million primarily due to regulatory asset charges associated with the
recovery of marginal transmission losses at ME and PN ($254 million), recovery of RECs for the Ohio Companies ($51
million), and the asset transfer between MP and AE Supply ($23 million) as well as higher default generation service cost
recovery in Pennsylvania, partially offset by a reduction of NUG cost recovery at ME and PN and higher transmission cost
deferrals in Ohio.
• General taxes decreased by $9 million primarily due to lower gross receipts and payroll taxes, partially offset by higher
property taxes.
• Impairment of long-lived assets of $322 million reflects MP's charge to reduce the net book value of Harrison to the amount
permitted to be included in rate base.
Other Expense —
Other expense increased $29 million in 2013 primarily due to lower investment income resulting from the liquidation of investments
at Shippingport and lower NDT investment income.
Regulated Transmission — 2013 Compared with 2012
Net income decreased by $12 million in 2013 compared to 2012, as further described below.
Revenues —
Total revenues increased by $1 million principally due to higher revenue requirements at ATSI and TrAIL, partially offset by lower
PJM network service revenues for the Utilities, reflecting lower peak loads from the prior year.
Revenues by transmission asset owner are shown in the following table:
For the Years Ended
December 31, Increase
Revenues by Transmission Asset Owner 2013 2012 (Decrease)
(In millions)
ATSI $ 219 $ 213 $ 6
TrAIL 207 200 7
PATH 20 18 2
Utilities 295 309 (14)
Total Revenues $ 741 $ 740 $ 1
Operating Expenses —
Total operating expenses increased by $16 million principally due to higher regulatory asset amortization related to the PATH
abandonment and higher property taxes reflecting a higher asset base.