...Elevated Capex Program: Indiana Michigan Power Co. (IMPCO) is in the midst of an elevated investment plan to expand its rate base by about 6% annually in 2013¡2018. After investing $1.4 billion in 2013¡2015 management forecasts capex will approximate $1.7 billion in 2016¡ 2018. The capex plan includes close to $500 million for the life extension of the Cook nuclear plant and $700 million in transmission and distribution assets. About 65% of Cook-related expenditures are attributable to Indiana and recoverable near contemporaneously through a rider mechanism. Resilient Credit Metrics: Fitch Ratings forecasts IMPCO's credit metrics will weaken modestly through 2018 compared with a relatively strong year-end 2015, with adjusted debt/EBITDAR hovering around 4.0x - 4.3x in 2016 - 2018. With the extension of bonus depreciation, internally generated cash flows should fund the majority of the planned capex over the rating horizon. Supportive Regulation: IMPCO's ratings reflect favorable regulatory...
