Allegheny Power 2013 Annual Report Download - page 38
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23
• General taxes decreased by $7 million due primarily to lower payroll taxes as a result of lower labor costs noted above,
partially offset by higher property taxes.
• Depreciation expense increased $30 million primarily due to a higher asset base and accelerated depreciation associated
with the deactivations noted above.
• Other operating expenses decreased by $210 million primarily due to a $322 million decrease in pensions and OPEB
mark-to-market charges primarily reflecting a higher discount rate to measure related obligations in 2013, partially offset
by an increase in mark-to-market expense on commodity contract positions ($98 million) and increased retail expenses
($26 million).
Other Expense —
Total other expense in 2013 increased $141 million compared to 2012 due to a $149 million loss on debt redemptions in connection
with senior notes that were repurchased, lower investment income of $52 million due to higher OTTI on the NDT investments,
partially offset by lower net interest expense of $60 million due to debt redemptions and repurchases.
Other — 2013 Compared with 2012
Financial results from other operating segments and reconciling items, including interest expense on holding company debt and
corporate support services revenues and expenses, resulted in a $107 million increase in net income in 2013 compared to 2012
primarily due to lower income tax expense of $128 million primarily resulting from reduced pre-tax income and a lower effective tax
rate and increased investment income of $39 million. Partially offsetting the increase was higher interest expense of $73 million
due to the issuance of $1.5 billion of senior unsecured notes in the first quarter of 2013.