Item 2.06. Material Impairments

Reference is made to page 2 under the caption "Proposed Corporate Separation and Termination of the Interconnection Agreement" in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 for American Electric Power Company, Inc. (AEP). On October 31, 2012, AEP filed applications with the Federal Energy Regulatory Commission (FERC) proposing to terminate the Interconnection Agreement and seeking to complete the corporate separation of Ohio Power Company's generation assets. Historically, AEP has evaluated the recoverability of the recorded generation assets of its subsidiary companies that are parties to the Interconnection Agreement as an asset group based on the interdependent nature of generation activities under the Interconnection Agreement that defines the sharing of costs and benefits associated with these generation assets. Based on our intention to terminate the Interconnection Agreement and our FERC filing requesting approval to terminate the Interconnection Agreement, AEP has performed an evaluation of the recoverability of Ohio Power Company's generation assets based on asset groups using unit-specific estimated future cash flows. As a result, on November 20, 2012, management concluded that AEP has a material impairment of certain of these generation assets. Management currently estimates that this impairment will result in a pre-tax charge in the fourth quarter of 2012 in the range of $235 million to $290 million. The impairment charge will have no impact on cash flows.