Expected improvement in the business risk profile resulting from a planned reduction of the merchant generation business combined with regulatory clarity in the Ohio regulated utility operations Large and diverse regulated utility franchise benefiting from generally constructive regulatory frameworks Environmental rules continue to add costs to coal fleet Merchant generation business will be fully exposed to market prices starting in mid-2015 Credit measures that support the assessment of the financial risk profile as "significant" Cash flow generation benefits from timely recovery of transmission investments, base rate increases, and the recovery of fuel and capacity costs in Ohio Large capital spending program results in negative discretionary cash flow The positive rating outlook on American Electric Power Co. Inc. (AEP) and its
