Ladies and gentlemen, thank you for standing by and welcome to the American Electric Power first quarter 2016 earnings conference call. At this time, all participants are in a listen-only mode and later we will conduct a question and answer session. Instructions will be given at that time. And as a reminder, today's conference is being recorded. I would now like to turn the conference over to your host, Ms. Bette Jo Rozsa. Please go ahead.

Thank you, Kaylee. Good morning everyone and welcome to the first quarter 2016 earnings call for American Electric Power. We are glad that you are able to join us today. Our earnings release, presentation slides, and related financial information are available on our website at aep.com. Today, we will be making forward-looking statements during the call. There are many factors that may cause future results to differ materially from these statements. Please refer to our SEC filings for a discussion of these factors. Joining me this morning for opening remarks are Nick Akins, our Chairman, President and Chief Executive Officer; and Brian Tierney, our Chief Financial Officer. We will take your questions following their remarks. I will now turn the call over to Nick. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Thanks, Bette Jo. Good morning, everyone and thank you for joining AEP's first quarter earnings call. Financially, 2016 is off to a steady start that delivered earnings consistent with our plan for the year, so all is in good shape there. It was not without challenges though, we overcame the winter that never happened, and of course, the anticipated changes from 2015 such as loss of capacity revenues related to the Ohio transition order that ended in May 2015, and the loss of AEP River Operations revenue due to the sale that occurred late last year. Positive rate changes, continued benefits of managing expenses and disciplined market hedging activities enabled GAAP and operating earnings to come in at $1.02 per share. This compares with $1.29 and $1.28 per share of GAAP and operating earnings respectively for 2015. The impact of weather was significant for the quarter. Brian will cover this in detail a little bit later, but we had the sixth warmest winter in the last…

Thank you. Our first question will come from the line of Jonathan Arnold of Deutsche Bank. Please go ahead.

Oh good morning, guys. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Jonathan.

Thank you. Thank you. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Or good afternoon, whatever it is to you at this point.

I think it's good morning, but thank you for such crisp comments on short notice. One question I had is that you talked about the plan with the PPA assets to engage in a parallel path strategic review or re-regulation. Is it possible that that strategic review could somehow be folded into the ongoing process around the non-PPA assets, or do you see these as definitely sort of separate track? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. We're going to start the process obviously with the PPA assets. We don't want to slow down the other assets. So we're still looking at that to see what can be done to address it, but we don't want to slow down the existing process that's going on. We're going to stay on schedule and we're going to continue cranking away and then we'll initiate the process and actually initiating a process on the PPA assets is relatively easy to do because we've already done it for the non-PPA assets. So it can move along relatively quickly as well. The question is you know I mean to all of a sudden roll it in to the existing process, it may be challenging. We'll just have to take a look at that.

Okay. And then just to clarify on timing, I think Nick in your remarks you said you'd hope to have a sort of process fully wrapped up for the non-PPA assets by the end of the year. And I think maybe I heard Brian say, you'd update us on the third quarter. So is there a possibility that year-end is the outside date and things happen quicker? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I think, obviously, we would want an announcement in the third quarter. And then we'd want to close as quickly as we can and we've been able to close transactions relatively quickly before and it's a known set of assets. So we feel like it may be aggressive, but we want to close by the end of the year.

Can you share when bids are due or anything like that? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Well, we have initial bids in a cycle that, I think, occurs during the second quarter and then the third quarter will be final bids.

Okay, great. And then can I just (24:38) sort of the other part of the parallel path? Where are you on this re-regulation proposal? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah.

Is it kind of standing start or is there some momentum kind of in the background? We've obviously just have the Chairman of the PUC step off the desk or about to. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah.

And can you just kind of update us on how you see that and how likely it is that something could really materialize faster than a strategic review? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I just probably make a distinction because even before we started the PPA, I said the State of Ohio needs to decide, but I'd also said that the Commission needs to decide and because we were trying to do something within the purview of the existing legislation and it being left out to the difference of the Commission to decide. In this case, we're not talking about the Commission. Now obviously we'd love for the Commission to be part of that process. They need to be part of the process but this is a legislative issue. And our concern is, and I think there has to be a broader concern about the state of Ohio and that's represented by the legislature, what do we do to enable Ohio to take a firm hold of the capacity and energy situation within the state, the development of new resources, the jobs, taxes and all those things that we talked about earlier. And it's not like you're starting at ground zero to do this. I think the issues in Ohio are well-known from an energy policy perspective. Matter of fact, we just got through the review, through the Ohio business round table, the Columbus partnership's been involved. There is definitely already steps being taken. It's a question of, okay, what steps? And there you're talking about, okay, is there a stopgap measure to basically allow the transfer of certain assets within the state of Ohio to AEP Ohio directly and avoid any kind of affiliate transaction, which probably, I would say is probably a better chance of accomplishing something like that and a full re-regulation, but I wouldn't take that off the table either. I mean because I think there's broader issues that are involved here like, for instance, if Ohio wants to move forward with renewables and renewable implementation and balance out the portfolio and focus on natural gas, those are clearly areas that can fall within some form of re-regulation.

Would a transfer like you suggest require FERC approval? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah, but that kind of approval, they've already done before. We already did it for net book transfers from our Ohio, what was our Ohio fleet to other jurisdictions, and they were approved without a hitch. So I think there is probably plenty of precedence on that one.

Great. Thanks. Thank you, Nick. That's all and I also want to thanks for your time this morning. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Okay. Thank you.

We'll go next to the line of Michael Weinstein with UBS. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Michael.

Hey, good morning. How are you doing? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good. Fine.

In the case of let's say total re-regulation, is the Ohio fleet enough to serve returning load, let's say? I mean I'm thinking about the over, I think, a much larger implication that that might entail for the utility, or do you have to build additional generation under that kind of a scenario? Nicholas K. Akins - Chairman, President & Chief Executive Officer: So the first answer is, no there's not enough. Secondly, we'd have to deal with the capacity deficiency either through the market or building new capacity. And I think it's a perfect opportunity for the state of Ohio to look at natural gas and renewables to fill out that approach. And as long as Ohio has control in doing that kind of thing, then we're ready willing and able to move that direction.

Have you already been in touch with members of the legislature to begin the process at this point, or basically this is initial reaction off last night's news? Nicholas K. Akins - Chairman, President & Chief Executive Officer: I'm not going to address that. I think certainly people are aware of the issues with energy policy in Ohio, and there have been discussions relative to the PPA with legislators, and they're fully aware of what the issues are, and it's not a huge stretch for them to ask the question, well, why don't you just re-regulate?

And would it be more accurate to say, this is more like a three-track process where you would go – re-regulation is track one, and track two might be transferring plants into rate base, and I guess instead of a – and third is to sell the plants, right, through another process, right? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I think we have to look at, and probably do have to have discussions about what is the most expedient process, because I mean there's several options here that we can talk about and some of them maybe stopgaps, some of them maybe longer term. And certainly I think that others in the state will agree that we need to respond quickly to enable us to continue to do what Ohio wants us to do with that generation. And so I'd say we're obviously discussing several options internally among ourselves, but we haven't gone out with specific policy objectives, at least detailed objectives, on how we want to approach it because obviously we want to do what's the most expeditious way to do it. Because in my book, the race is on. The race is on between our option of the strategic evaluation versus our option to have some form of re-regulation coverage. And it maybe a misnomer to call it re-regulation, but we'll have to see what that means. I think AEP has reached the point where it's time to get this resolved once and for all.

Okay. Thanks a lot, guys. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yep.

Thank you. We'll go next to the line of Paul Patterson with Glenrock Associates. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Paul.

Good morning. So just to understand this. If you were to be able to transfer stuff into rate base, that would require legislation, is that not correct? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. We'd need approval from a legislative standpoint to transfer back into AEP Ohio.

Okay. How long do you think that might take legislatively? I mean how should we think about that as analysts? How quickly do you think that they might be practically able to address something like this? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. That's probably what we're going to find out, but as far as your timeline, you really ought to be going by our other option of the strategic evaluation. And if we do something earlier, that's great.

Okay, I got you. So you're not going to wait for – you want resolution one way or the other pretty quickly, it sounds like? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah, we're not waiting.

And here's just an idea that – and if this is crazy, let me know, but what about the idea of – since this is an affiliate issue at least the FERC order that came out, just simply AEP is assigning the PPA to FE and FE is assigning the PPA to AEP. I've realized that there'd have to probably be some changes, but since PUCO doesn't seem to have that big an issue with it, I mean I'm just wondering is that something that could realistically address the issue, or you follow what I'm saying? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I follow what you're saying. I think probably FERC would follow what you're saying too. So I think that would probably wind up being an issue because you know FERC, they hinged their order. I mean it wasn't just an order saying, come in, let's take a look at it. It was basically saying we don't like the non-bypassables and...

In the context of an affiliate transaction now. I mean this wouldn't be an affiliate transaction then. I mean I realize it's sort of legalistic, but I mean you guys want to be affiliates at that point? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. We will certainly look at that option but...

Okay. I just thought... Nicholas K. Akins - Chairman, President & Chief Executive Officer: I just don't want to introduce any novel issues that would drive our schedule to be even longer, and I think anything to do relative to FERC at this point most likely would be a longer schedule. So we'll have to look at it and see. I mean obviously we'll hold those kinds of options open, but I'm just trying to say our primary options are number one and number two that I had talked about earlier.

Okay. Thanks so much. Appreciate it. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yep.

And we'll go next to the line of Anthony Crowdell with Jefferies. Please go ahead. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Anthony.

Hey, good morning. Is it reasonable then, and maybe you don't want to answer this, whether the re-regulation scenario or some type of cost of service return on these assets is like a two-year event, or no clarity on that at all? Nicholas K. Akins - Chairman, President & Chief Executive Officer: No. It's not a two-year event. I don't think it's a two-year event. I mean, these issues are well-known, and really, I mean what we asked for Senate Bill 221 if you scrap that and kept – and it goes back to the previous legislation, then there's opportunities there, or it could be specific issues that are dealt with within a smaller legislation that's sort of a stopgap measure to allow the transfer. And so I think that's a relatively simple thing to think about.

All right, great. And just a quick follow-up. Are there any other instances at all that AEP uses an affiliate waiver that may also be contested? Nicholas K. Akins - Chairman, President & Chief Executive Officer: No, I don't think we have anything else there.

Oh, great. Thank you so much for my taking question. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah.

Thank you. We'll go to next to the line of Ali Agha with SunTrust.

Thank you. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Ali.

Good morning. Good morning. Nick, just to clarify your overall thinking on your merchant exposure. I think you said for the non-PPA assets announce something Q3, get it all done by year-end. Is the plan for the PPA assets, whatever it happens to be done by year-end as well, or could this spill into 2017? Nicholas K. Akins - Chairman, President & Chief Executive Officer: I think realistically the PPA assets could likely fall into 2017, but I wouldn't think far into 2017 because obviously we have to get a confidential data room with all the analysis and all of the things around those units done, but the parties that are interested in capacity and PJM, they're pretty well-known now. So I think there's probably things you can do to shorten the schedule, but I think to get the non-PPA assets done by year-end is an aggressive posture, but doable but I think probably the PPA assets could fall into first quarter, second quarter next year.

Also you said in the past, the PPA assets are the most competitively flattened higher cost coal assets. I mean is one scenario to just throw in the towel and say, you know what, the market isn't giving us the right signal, we don't have any other avenues, we may just shut down this capacity? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Well, I think we need more data before we can make that kind of decision. So I think you've got to test the market and who knows, I mean, you could have a strong summer and the whole world changes. So I wouldn't have any conjecture on that at this point.

Okay. And just on the timing perspective, can you just remind us, when does the legislature meet? I mean, what's their schedule. So if it doesn't happen in this current one, when is the next time they meet, just if that is the option that we're going to be also focused on? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah, they can meet anytime.

I see. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. They're in session now, but obviously with the presidential election and all that kind of stuff could slow things down, but that doesn't stop you from doing all the education and everything until after the presidential activities are over.

I see. And fair to say that the FERC coming in that's not done, you're not getting involved in Ohio versus FERC that kind of thing? Nicholas K. Akins - Chairman, President & Chief Executive Officer: I'm sorry. I missed that question.

With the FERC jumping in and stopping the waiver, I think, did I hear your comments right that you don't see any avenue there that that's just going to be take too long and that's not a realistic path for that whole process to play itself out? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah, that's fallen back to the third option and really we'll have to take a closer look from a legal perspective, can the FERC process be short changed at all and any provisions that could occur there, but I think FERC is pretty well spoken. We could perhaps ultimately prevail, but it's a long circuitous route to get there unless we can find a way to get a more, a clear and concise and quick response from FERC. So I think that's probably a longer hurdle at this point.

Got it. Last question. Nick, when you look at your company, the premier utility company assuming these merchant assets are ultimately gone. Does 4% to 6% still look like the realistic growth target or could you look at a perhaps even higher target given the growth that your Transmission business is showing for the next several years? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. So I think we'll probably give you some more insight on that in November at EEI, but it's clear that we are reaffirming the 4% to 6% for now, and then and you see the utility growth that's occurring. I mean we show those numbers too. So once we're fully regulated, we'll give a view of what that looks like going forward as well.

Thank you. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah.

Next we'll go to the line of Paul Ridzon with KeyBanc. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Paul.

Good morning. Is there any potential if you get expeditious re-regulation that there might be better value in putting some of non-PPA assets into rate base? Are those – ? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I don't know really. We don't know the answer to that at this point, because the assets that were in the non-PPA side of things, they were natural gas assets primarily, and the market has certainly valued those assets. So we'll have to look at the numbers and responses. We'll know that pretty soon. And then we'll be able to tell you. But at this point, I think it's just conjecture to assume that but we'll be looking at all the options, don't worry about that.

And who is the data room, is it private equity, is it strategics? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. There's plenty of parties that are in the data room. I just wouldn't want to go any further than that at this point. They'll become known pretty soon.

Okay. If we can move out of Ohio and go a little further south. Louisiana is going to talk today about their tax items. Any insight would you expect to come out of that? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. So from a Louisiana perspective, I think, it's really taking a step out there to start to deal with the phantom tax issue. Texas has dealt with it before and that obviously was taken care of. West Virginia the same thing. So, unless Louisiana wants to be unique from every other jurisdictions, but that if they do choose to do something like that, then they're going a very different route. And obviously there's no ex parte communications in Louisiana. So we'll obviously be having discussions about all that with our commissioners.

You have not had a discussion... Nicholas K. Akins - Chairman, President & Chief Executive Officer: Brian, anything you want to add? Brian X. Tierney - Chief Financial Officer & Executive Vice President: No. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Okay.

Okay. Thanks for the update. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yep.

We'll go next to line of Gregg Orrill with Barclays.

Thanks. My questions have been asked and answered. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Hey, Gregg. Thanks. Brian X. Tierney - Chief Financial Officer & Executive Vice President: Thanks, Gregg. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Well, good morning, anyway.

Yep. Good morning.

We'll go next to line of Michael Lapides with Goldman Sachs. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Michael. Michael Lapides - Goldman Sachs & Co.: Hey good morning, guys. Thanks for taking my question. Want to focus on the core business actually and looking at slide four, are you seeing degradation? If I were to look at the same slide for the last year or so, are you seeing some degradation, I mean I'll use a handful of examples. PSO, AEP Texas, SWEPCO, pretty big subsidiaries, numbers appear potentially heading the wrong direction or have headed the wrong direction there. Can you give a little more detail about the dollar rate increase request at SWEPCO and AEP Texas? When you expect those to go in and what kind of impact you expect that to have on regulated returns in both markets? Brian X. Tierney - Chief Financial Officer & Executive Vice President: Yeah. Let me start with Texas first. TCC and TNC, we've recently filed the distribution and cost recovery factors there. And those requests are TCC about $54 million, TNC about $16 million in terms of when we expect them to come in place, to propose effective date for both of those is September 1st of this year. And so the effect of those increases will come in, in this chart over the course of the following 12 months in that regard. In SWEPCO, we also have a Texas TCRF that's in and we've requested an increase of about $4.9 million, a very small average customer increase. In addition, we've had a SWEPCO distribution cost recovery factor, where we've requested another about $9.2 million. So very much trying to take advantage of the relatively quick recovery mechanisms that they have with the cost…

We'll go next to the line of Praful Mehta with Citigroup.

Hi, guys. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Praful.

Thanks for taking my call. And sorry to go back to the PPA aspects, but looking on the non-PPA, I'm a little confused with the timing and the sequencing. Because if your goal is to get an exit quickly on the non-PPA asset, but you also want to attempt to try to re-regulate, I just don't see how the timing works because if you want to just sell the assets you've probably got to execute pretty quickly rather than wait to try and re-regulate. Could you help me just understand how the timing could work there? Brian X. Tierney - Chief Financial Officer & Executive Vice President: So there's two different things here. I mean, the non-PPA assets are part of the process that's already ongoing. And that process is already in play. There's already confidential data rooms. There's already a review going on. There's all kinds of things going on with that transaction, and really the schedule is pretty aggressive, but we're going to get it done. The -

Sorry I meant the PPA assets. I was trying to - Brian X. Tierney - Chief Financial Officer & Executive Vice President: Okay. So the PPA assets, obviously we're going to have to do the same thing there in terms of getting a lot of data associated with that. Now just think about – the original non-PPA assets are plants that are wholly owned, there's no partners, there's primarily natural gas, which is pretty easy to evaluate with Gavin obviously, and Gavin is the piece that people have to take a look at as well. With the other set of assets, I'm sure, we've got to get a lot of data and information together for them to present them in a positive way to ensure that potential investors can look at those assets and give them time to do that. So we wouldn't want to slow down the existing non-PPA for that. And you can only move so quickly with those kinds of transactions, particularly as it relates to the existing PPA assets, but we'll start the process. We'll move as quickly as we can, but I'm just trying to be realistic in that it will take a little bit longer than the existing schedule we have for the non-PPA. And now what it also says is, is that the re-regulation or anything, any potential option thereof is going to have to move very aggressively. And so we don't have any time to spare on that, because I think that – but I'm just saying that that's not the critical path. On the critical path, we have two projects: one, the existing non-PPA, and then now we have the existing PPA assets, and we're going to move as quickly as we can. There's been a lot of homework done on it, lot of analysis done on it. So we don't have to do any of that and recreate it, but we've got to make sure our process is robust enough so that people can understand probably a more complex set of resources.

Fair enough. Got you. That's very helpful. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yep.

And just secondly for both the assets, PPA and non-PPA, could you just remind us, given there's a little bit of timing difference, but broadly both are going to be sold. If that's the base case, could you just remind us in terms of the tax basis or the tax leakage expectation, if any, and the use of proceeds, if it's just going to be for reinvesting in the Transmission side or you're also going to do some share buybacks? Brian X. Tierney - Chief Financial Officer & Executive Vice President: So we've not shared the tax basis on those assets. And really the use of proceeds discussion would be likely timed to when we would announce what a transaction would be, but we have a great opportunity to reinvest in our organic business with those proceeds, as you saw us do, when we had a – bonus tax depreciation got extended, we're able to increase the CapEx for 2017 and 2018 by $1 billion immediately, most of that going into the wire side of the business, but more a fulsome discussion on what we would do with use of proceeds would likely be at an Analyst Day following the announcement of the resolution of that strategic review. Nicholas K. Akins - Chairman, President & Chief Executive Officer: What I can tell you is we're very mindful of is that we have a whole laundry list of potential places to put any available cash that comes in. You named one of them, obviously transmission, which we have substantial ability there. There's other things on the list that we continue to invest in, not only the operating companies but also on the competitive side with purchase power arrangements. So those are opportunities that we can continue to develop in anticipation of cash proceeds coming in. But what I want to make sure of is that, we're not going to just get a pile of cash and have it burn a hole in our pocket and we wind up doing something stupid.

Got you. Very helpful. Thank you, guys.

We'll go next to the line of Shar Pourreza with Guggenheim.

Good morning, everyone. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning.

Most of my questions were answered, but just on the legislative route. I know it's not probably the primary route you want to take, but this is probably the first instance that I can remember that all the utilities seem like they're unified within the state. So when you're sort of thinking about taking the legislative route, is this something you're going to collaborate with, with your neighboring utilities, and has this sort of been a preliminary discussion? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I think our interests are consistently aligned because there's a problem, and everyone knows there's a problem. And for some probably, it's more of a problem than others, but it's still a problem. So we're going to continue to address it, and you'll have to ask Chuck at FE and others, what their thoughts are, but I would venture to say that our interests are aligned in many ways from that perspective because there is a problem.

Got it. Okay, good. And then just lastly, not to drill another parallel path here, but is there an option to hold a competitive RFP process for the PPAs and allow the other gencos to bid into this? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Well, I guess the question is, is there enough capacity? I'd just have to take a look at that.

Got it. Okay, good. And then just lastly here bypassable... Nicholas K. Akins - Chairman, President & Chief Executive Officer: Let me just say this, though...

Yeah. Nicholas K. Akins - Chairman, President & Chief Executive Officer: ... I really don't want to get to a point where we have 10 options that we're evaluating, because I think it's pretty clear what we need to do.

Got it. Okay, great. And then just I probably know the answer to this, but a bypassable route on the PPAs is not something you'd want to take up. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Well, that is an option but we'll have to investigate it and see what actually that means for the company financially but that is an option that has been initially discussed, but whether that prevails or not, we'll just have to take a look and see.

Excellent. Thanks so much, guys. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yep.

Thank you. And our next question will come from the line of Jim von Riesemann of Mizuho. Please go ahead. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Jim.

Good morning. How are you? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Just fine.

I have a couple of, just like semantics types questions. So the Ohio legislature is supposed to end in mid-June. When is the last date to submit a bill? And do you need to have a bill submitted in order for the government to call a special session? Nicholas K. Akins - Chairman, President & Chief Executive Officer: We'll have to take a look at that. I don't know. Do we have any of our... Brian X. Tierney - Chief Financial Officer & Executive Vice President: No deadline... Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah, okay. So there's no deadline for legislation being introduced.

Okay, okay. And then I guess the second question is, if you go this route and this whole FERC process doesn't work out, are you still subject to the refund that they discussed in the order yesterday? Brian X. Tierney - Chief Financial Officer & Executive Vice President: Nothing's been collected yet, so there's nothing to refund.

Okay. Brian X. Tierney - Chief Financial Officer & Executive Vice President: But their refund order stays in effect if we were to begin collecting, but given what they said about the waiver, we can't begin collecting because we can't implement the PPA. So there's nothing to refund. Nicholas K. Akins - Chairman, President & Chief Executive Officer: We weren't collecting until...

Just making sure. Brian X. Tierney - Chief Financial Officer & Executive Vice President: Yeah. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. We weren't collecting until June 1, so, I guess...

Yeah. I was just making sure. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. No problem there.

And then totally different topic. Do you have any comments or thoughts from the Senate Energy Bill that has been passed there and needs to go to reconciliation? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. I think certainly Senator Murkowski has been working very hard to get bipartisan support for the bill has energy efficiency provisions, has provisions for the grid in terms of certainly the focus on making sure the grid is reliable. I think that's a good bill. And obviously, it has to go to conference and Fred Upton has been working on the other side on the House side. So they'll have to put those two together and they're very different in some respect. So we're going to have to work through that process, but overall, though, anything that Congress and the Senate can do to come together from a bipartisan standpoint to focus on reliability of the grid, integration of all these activities that we are having to deal with is a good thing, and I think it's a good start. Now, there's some heavier lift issues that eventually will need to be addressed but you got to start somewhere, and I think Lisa Murkowski has done an incredible job – I think it's Cantwell on the other side of the aisle – but it's good to see.

Is it premature to discuss what sort of impact it might have on your company, the bill, in terms of incremental CapEx? Nicholas K. Akins - Chairman, President & Chief Executive Officer: You know even for what it's doing in terms of things like renewables, I mean I think it would be potentially more wires investment for us, which we've been very effective at implementing to enable solar and wind development. I mean I think it's only an upside at this point. We haven't quantified what that is yet Jim.

Okay. Nicholas K. Akins - Chairman, President & Chief Executive Officer: But we think it's the positive opportunities for us. Brian X. Tierney - Chief Financial Officer & Executive Vice President: I certainly don't think it's anything we're concerned about.

Okay. That's what I was going after. Thank you. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah.

Operator, we have time for one more call, one more question.

And that will come from the line of Michael Worms with BMO.

I made it. Thank you. Nicholas K. Akins - Chairman, President & Chief Executive Officer: Good morning, Michael.

Good morning. How are you doing? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Just fine.

Nick, I think with regard to potential for re-regulation, I believe you've indicated earlier that there is not enough generation to meet load. And so I guess the question would be under such a scenario, what would the impact be to the consumer in terms of building out the system to meet the load relative to what the market pricing is today under the current environment? Nicholas K. Akins - Chairman, President & Chief Executive Officer: Yeah. Well, we haven't neither created nor destroyed capacity out in the market. So there may have to be interim solutions of capacity to get through until the state can actually decide what does an integrated resource plan look like for the state going forward. So the capacity is probably available but because we transferred our capacity as well and retired capacity, we'll need to make sure we have a plan to recover from that. I think from the customer standpoint, to put new capacity in place or buy existing capacity that's out on the market, would be a positive thing to provide certainty in terms of their bills in the future. And I just see a very volatile future for Ohio customers and usually that volatility happens at bad times, where customers can here afford to be able to pay a bill, I think. The utility sort of focus, as particularly an integrated utility is sort of a big budget biller. And when you open it up to market forces, the budget biller is not in the game anymore. So I think there's value in that.

Great. Thank you very much. I appreciate it.

Thank you for joining us on today's call. As always, the IR team will be available to answer any additional questions you may have. Kaylee, would you please give the replay information?

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