FERC Form

THIS FILING IS

Item 1:

☑ An Initial (Original) Submission

OR

☐ Resubmission No.




FERC FINANCIAL REPORT FERC FORM No. 1: Annual Report of Major Electric Utilities, Licensees and Others and Supplemental Form 3-Q: Quarterly Financial Report

These reports are mandatory under the Federal Power Act, Sections 3, 4(a), 304 and 309, and 18 CFR 141.1 and 141.400. Failure to report may result in criminal fines, civil penalties and other sanctions as provided by law. The Federal Energy Regulatory Commission does not consider these reports to be of confidential nature

Exact Legal Name of Respondent (Company)

Kingsport Power Company

Year/Period of Report

End of:

2022

/

Q4

INSTRUCTIONS FOR FILING FERC FORM NOS. 1 and 3-Q

GENERAL INFORMATION

Purpose
FERC Form No. 1 (FERC Form 1) is an annual regulatory requirement for Major electric utilities, licensees and others (18 C.F.R. § 141.1). FERC Form No. 3-Q ( FERC Form 3-Q) is a quarterly regulatory requirement which supplements the annual financial reporting requirement (18 C.F.R. § 141.400). These reports are designed to collect financial and operational information from electric utilities, licensees and others subject to the jurisdiction of the Federal Energy Regulatory Commission. These reports are also considered to be non-confidential public use forms.
Who Must Submit
Each Major electric utility, licensee, or other, as classified in the Commission’s Uniform System of Accounts Prescribed for Public Utilities, Licensees, and Others Subject To the Provisions of The Federal Power Act (18 C.F.R. Part 101), must submit FERC Form 1 (18 C.F.R. § 141.1), and FERC Form 3-Q (18 C.F.R. § 141.400).
Note: Major means having, in each of the three previous calendar years, sales or transmission service that exceeds one of the following:
1. one million megawatt hours of total annual sales,
2. 100 megawatt hours of annual sales for resale,
3. 500 megawatt hours of annual power exchanges delivered, or
4. 500 megawatt hours of annual wheeling for others (deliveries plus losses).

What and Where to Submit

Submit FERC Form Nos. 1 and 3-Q electronically through the eCollection portal at https://eCollection.ferc.gov, and according to the specifications in the Form 1 and 3-Q taxonomies.
The Corporate Officer Certification must be submitted electronically as part of the FERC Forms 1 and 3-Q filings.
Submit immediately upon publication, by either eFiling or mail, two (2) copies to the Secretary of the Commission, the latest Annual Report to Stockholders. Unless eFiling the Annual Report to Stockholders, mail the stockholders report to the Secretary of the Commission at:
Secretary
Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426

For the CPA Certification Statement, submit within 30 days after filing the FERC Form 1, a letter or report (not applicable to filers classified as Class C or Class D prior to January 1, 1984). The CPA Certification Statement can be either eFiled or mailed to the Secretary of the Commission at the address above.

The CPA Certification Statement should:

Attest to the conformity, in all material aspects, of the below listed (schedules and pages) with the Commission's applicable Uniform System of Accounts (including applicable notes relating thereto and the Chief Accountant's published accounting releases), and

Be signed by independent certified public accountants or an independent licensed public accountant certified or licensed by a regulatory authority of a State or other political subdivision of the U. S. (See 18 C.F.R. §§ 41.10-41.12 for specific qualifications.)

Schedules	Pages
Comparative Balance Sheet	110-113
Statement of Income	114-117
Statement of Retained Earnings	118-119
Statement of Cash Flows	120-121
Notes to Financial Statements	122-123

The following format must be used for the CPA Certification Statement unless unusual circumstances or conditions, explained in the letter or report, demand that it be varied. Insert parenthetical phrases only when exceptions are reported.
“In connection with our regular examination of the financial statements of [COMPANY NAME] for the year ended on which we have reported separately under date of [DATE], we have also reviewed schedules [NAME OF SCHEDULES] of FERC Form No. 1 for the year filed with the Federal Energy Regulatory Commission, for conformity in all material respects with the requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases. Our review for this purpose included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph (except as noted below) conform in all material respects with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases.” The letter or report must state which, if any, of the pages above do not conform to the Commission’s requirements. Describe the discrepancies that exist.
Filers are encouraged to file their Annual Report to Stockholders, and the CPA Certification Statement using eFiling. Further instructions are found on the Commission’s website at https://www.ferc.gov/ferc-online/ferc-online/frequently-asked-questions-faqs-efilingferc-online.
Federal, State, and Local Governments and other authorized users may obtain additional blank copies of FERC Form 1 and 3-Q free of charge from https://www.ferc.gov/general-information-0/electric-industry-forms.

When to Submit
FERC Forms 1 and 3-Q must be filed by the following schedule:
1. FERC Form 1 for each year ending December 31 must be filed by April 18th of the following year (18 CFR § 141.1), and
2. FERC Form 3-Q for each calendar quarter must be filed within 60 days after the reporting quarter (18 C.F.R. § 141.400).
Where to Send Comments on Public Reporting Burden.
The public reporting burden for the FERC Form 1 collection of information is estimated to average 1,168 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data-needed, and completing and reviewing the collection of information. The public reporting burden for the FERC Form 3-Q collection of information is estimated to average 168 hours per response.
Send comments regarding these burden estimates or any aspect of these collections of information, including suggestions for reducing burden, to the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 (Attention: Information Clearance Officer); and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the Federal Energy Regulatory Commission). No person shall be subject to any penalty if any collection of information does not display a valid control number (44 U.S.C. § 3512 (a)).

GENERAL INSTRUCTIONS

Prepare this report in conformity with the Uniform System of Accounts (18 CFR Part 101) (USofA). Interpret all accounting words and phrases in accordance with the USofA.
Enter in whole numbers (dollars or MWH) only, except where otherwise noted. (Enter cents for averages and figures per unit where cents are important. The truncating of cents is allowed except on the four basic financial statements where rounding is required.) The amounts shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to determine significance for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year's year to date amounts.
Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word "None" where it truly and completely states the fact.
For any page(s) that is not applicable to the respondent, omit the page(s) and enter "NA," "NONE," or "Not Applicable" in column (d) on the List of Schedules, pages 2 and 3.
Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" included in the header of each page is to be completed only for resubmissions (see VII. below).
Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the expected sign must be reported by enclosing the numbers in parentheses.
For any resubmissions, please explain the reason for the resubmission in a footnote to the data field.
Do not make references to reports of previous periods/years or to other reports in lieu of required entries, except as specifically authorized.
Wherever (schedule) pages refer to figures from a previous period/year, the figures reported must be based upon those shown by the report of the previous period/year, or an appropriate explanation given as to why the different figures were used.
Schedule specific instructions are found in the applicable taxonomy and on the applicable blank rendered form.

Definitions for statistical classifications used for completing schedules for transmission system reporting are as follows:

FNS - Firm Network Transmission Service for Self. "Firm" means service that can not be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff. "Self" means the respondent.

FNO - Firm Network Service for Others. "Firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff.

LFP - for Long-Term Firm Point-to-Point Transmission Reservations. "Long-Term" means one year or longer and” firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Point-to-Point Transmission Reservations" are described in Order No. 888 and the Open Access Transmission Tariff. For all transactions identified as LFP, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally cancel the contract.

OLF - Other Long-Term Firm Transmission Service. Report service provided under contracts which do not conform to the terms of the Open Access Transmission Tariff. "Long-Term" means one year or longer and “firm” means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. For all transactions identified as OLF, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally get out of the contract.

SFP - Short-Term Firm Point-to-Point Transmission Reservations. Use this classification for all firm point-to-point transmission reservations, where the duration of each period of reservation is less than one-year.

NF - Non-Firm Transmission Service, where firm means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions.

OS - Other Transmission Service. Use this classification only for those services which can not be placed in the above-mentioned classifications, such as all other service regardless of the length of the contract and service FERC Form. Describe the type of service in a footnote for each entry.

AD - Out-of-Period Adjustments. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment.

DEFINITIONS

Commission Authorization (Comm. Auth.) -- The authorization of the Federal Energy Regulatory Commission, or any other Commission. Name the commission whose authorization was obtained and give date of the authorization.
Respondent -- The person, corporation, licensee, agency, authority, or other Legal entity or instrumentality in whose behalf the report is made.

EXCERPTS FROM THE LAW

Federal Power Act, 16 U.S.C. § 791a-825r

Sec. 3. The words defined in this section shall have the following meanings for purposes of this Act, to with:

’Corporation' means any corporation, joint-stock company, partnership, association, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing. It shall not include 'municipalities, as hereinafter defined;
'Person' means an individual or a corporation;
'Licensee, means any person, State, or municipality Licensed under the provisions of section 4 of this Act, and any assignee or successor in interest thereof;

'municipality means a city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the Laws thereof to carry and the business of developing, transmitting, unitizing, or distributing power; ......

"project' means. a complete unit of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said unit, and all storage, diverting, or fore bay reservoirs directly connected therewith, the primary line or lines transmitting power there from to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water rights, rights-of-way, ditches, dams, reservoirs, Lands, or interest in Lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit;

"Sec. 4. The Commission is hereby authorized and empowered

'To make investigations and to collect and record data concerning the utilization of the water 'resources of any region to be developed, the water-power industry and its relation to other industries and to interstate or foreign commerce, and concerning the location, capacity, development costs, and relation to markets of power sites; ... to the extent the Commission may deem necessary or useful for the purposes of this Act."

"Sec. 304.

Every Licensee and every public utility shall file with the Commission such annual and other periodic or special* reports as the Commission may by rules and regulations or other prescribe as necessary or appropriate to assist the Commission in the proper administration of this Act. The Commission may prescribe the manner and FERC Form in which such reports shall be made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other things, full information as to assets and Liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for currently determining such costs and other facts. Such reports shall be made under oath unless the Commission otherwise specifies*.10

"Sec. 309.

The Commission shall have power to perform any and all acts, and to prescribe, issue, make, and rescind such orders, rules and regulations as it may find necessary or appropriate to carry out the provisions of this Act. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this Act; and may prescribe the FERC Form or FERC Forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be field..."

GENERAL PENALTIES

The Commission may assess up to $1 million per day per violation of its rules and regulations. See FPA § 316(a) (2005), 16 U.S.C. § 825o(a).

FERC FORM NO.

1

REPORT OF MAJOR ELECTRIC UTILITIES, LICENSEES AND OTHER

IDENTIFICATION

01 Exact Legal Name of Respondent

Kingsport Power Company

02 Year/ Period of Report

End of:

2022

/

Q4

03 Previous Name and Date of Change (If name changed during year)

/

04 Address of Principal Office at End of Period (Street, City, State, Zip Code)

1 Riverside Plaza, Columbus, OH 43215-2373

05 Name of Contact Person

Jason M. Johnson

06 Title of Contact Person

Accountant

07 Address of Contact Person (Street, City, State, Zip Code)

AEP Service Corp., 1 Riverside Plaza, Columbus, OH 43215-2373

08 Telephone of Contact Person, Including Area Code

(614) 716-1000

09 This Report is An Original / A Resubmission

(1)

☑ An Original

(2)

☐ A Resubmission

10 Date of Report (Mo, Da, Yr)

04/12/2023

Annual Corporate Officer Certification

The undersigned officer certifies that:

I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material respects to the Uniform System of Accounts.

01 Name

Jeffery W. Hoersdig

02 Title

Assistant Controller

03 Signature

Jeffery W. Hoersdig

04 Date Signed (Mo, Da, Yr)

04/12/2023

Title 18, U.S.C. 1001 makes it a crime for any person to knowingly and willingly to make to any Agency or Department of the United States any false, fictitious or fraudulent statements as to any matter within its jurisdiction.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

LIST OF SCHEDULES (Electric Utility)
Enter in column (c) the terms "none," "not applicable," or "NA," as appropriate, where no information or amounts have been reported for certain pages. Omit pages where the respondents are "none," "not applicable," or "NA".
Line No.	Title of Schedule (a)	Reference Page No. (b)	Remarks (c)
	ScheduleIdentificationAbstract Identification	1
	ScheduleListOfSchedulesAbstract List of Schedules	2
1	ScheduleGeneralInformationAbstract General Information	101
2	ScheduleControlOverRespondentAbstract Control Over Respondent	102
3	ScheduleCorporationsControlledByRespondentAbstract Corporations Controlled by Respondent	103
4	ScheduleOfficersAbstract Officers	104
5	ScheduleDirectorsAbstract Directors	105
6	ScheduleInformationOnFormulaRatesAbstract Information on Formula Rates	106
7	ScheduleImportantChangesDuringTheQuarterYearAbstract Important Changes During the Year	108
8	ScheduleComparativeBalanceSheetAbstract Comparative Balance Sheet	110
9	ScheduleStatementOfIncomeAbstract Statement of Income for the Year	114
10	ScheduleRetainedEarningsAbstract Statement of Retained Earnings for the Year	118
12	ScheduleStatementOfCashFlowsAbstract Statement of Cash Flows	120
12	ScheduleNotesToFinancialStatementsAbstract Notes to Financial Statements	122
13	ScheduleStatementOfAccumulatedOtherComprehensiveIncomeAndHedgingActivitiesAbstract Statement of Accum Other Comp Income, Comp Income, and Hedging Activities	122a
14	ScheduleSummaryOfUtilityPlantAndAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract Summary of Utility Plant & Accumulated Provisions for Dep, Amort & Dep	200
15	ScheduleNuclearFuelMaterialsAbstract Nuclear Fuel Materials	202
16	ScheduleElectricPlantInServiceAbstract Electric Plant in Service	204
17	ScheduleElectricPropertyLeasedToOthersAbstract Electric Plant Leased to Others	213
18	ScheduleElectricPlantHeldForFutureUseAbstract Electric Plant Held for Future Use	214
19	ScheduleConstructionWorkInProgressElectricAbstract Construction Work in Progress-Electric	216
20	ScheduleAccumulatedProvisionForDepreciationOfElectricUtilityPlantAbstract Accumulated Provision for Depreciation of Electric Utility Plant	219
21	ScheduleInvestmentsInSubsidiaryCompaniesAbstract Investment of Subsidiary Companies	224
22	ScheduleMaterialsAndSuppliesAbstract Materials and Supplies	227
23	ScheduleAllowanceInventoryAbstract Allowances	228
24	ScheduleExtraordinaryPropertyLossesAbstract Extraordinary Property Losses	230a
25	ScheduleUnrecoveredPlantAndRegulatoryStudyCostsAbstract Unrecovered Plant and Regulatory Study Costs	230b
26	ScheduleTransmissionServiceAndGenerationInterconnectionStudyCostsAbstract Transmission Service and Generation Interconnection Study Costs	231	NA
27	ScheduleOtherRegulatoryAssetsAbstract Other Regulatory Assets	232
28	ScheduleMiscellaneousDeferredDebitsAbstract Miscellaneous Deferred Debits	233
29	ScheduleAccumulatedDeferredIncomeTaxesAbstract Accumulated Deferred Income Taxes	234
30	ScheduleCapitalStockAbstract Capital Stock	250
31	ScheduleOtherPaidInCapitalAbstract Other Paid-in Capital	253
32	ScheduleCapitalStockExpenseAbstract Capital Stock Expense	254b
33	ScheduleLongTermDebtAbstract Long-Term Debt	256
34	ScheduleReconciliationOfReportedNetIncomeWithTaxableIncomeForFederalIncomeTaxesAbstract Reconciliation of Reported Net Income with Taxable Inc for Fed Inc Tax	261
35	ScheduleTaxesAccruedPrepaidAndChargedDuringYearDistributionOfTaxesChargedAbstract Taxes Accrued, Prepaid and Charged During the Year	262
36	ScheduleAccumulatedDeferredInvestmentTaxCreditsAbstract Accumulated Deferred Investment Tax Credits	266
37	ScheduleOtherDeferredCreditsAbstract Other Deferred Credits	269
38	ScheduleAccumulatedDeferredIncomeTaxesAcceleratedAmortizationPropertyAbstract Accumulated Deferred Income Taxes-Accelerated Amortization Property	272
39	ScheduleAccumulatedDeferredIncomeTaxesOtherPropertyAbstract Accumulated Deferred Income Taxes-Other Property	274
40	ScheduleAccumulatedDeferredIncomeTaxesOtherAbstract Accumulated Deferred Income Taxes-Other	276
41	ScheduleOtherRegulatoryLiabilitiesAbstract Other Regulatory Liabilities	278
42	ScheduleElectricOperatingRevenuesAbstract Electric Operating Revenues	300
43	ScheduleRegionalTransmissionServiceRevenuesAbstract Regional Transmission Service Revenues (Account 457.1)	302	NA
44	ScheduleSalesOfElectricityByRateSchedulesAbstract Sales of Electricity by Rate Schedules	304
45	ScheduleSalesForResaleAbstract Sales for Resale	310
46	ScheduleElectricOperationsAndMaintenanceExpensesAbstract Electric Operation and Maintenance Expenses	320
47	SchedulePurchasedPowerAbstract Purchased Power	326
48	ScheduleTransmissionOfElectricityForOthersAbstract Transmission of Electricity for Others	328
49	ScheduleTransmissionOfElectricityByIsoOrRtoAbstract Transmission of Electricity by ISO/RTOs	331	NA
50	ScheduleTransmissionOfElectricityByOthersAbstract Transmission of Electricity by Others	332	NA
51	ScheduleMiscellaneousGeneralExpensesAbstract Miscellaneous General Expenses-Electric	335
52	ScheduleDepreciationDepletionAndAmortizationAbstract Depreciation and Amortization of Electric Plant (Account 403, 404, 405)	336
53	ScheduleRegulatoryCommissionExpensesAbstract Regulatory Commission Expenses	350
54	ScheduleResearchDevelopmentOrDemonstrationExpendituresAbstract Research, Development and Demonstration Activities	352
55	ScheduleDistributionOfSalariesAndWagesAbstract Distribution of Salaries and Wages	354
56	ScheduleCommonUtilityPlantAndExpensesAbstract Common Utility Plant and Expenses	356
57	ScheduleAmountsIncludedInIsoOrRtoSettlementAbstract Amounts included in ISO/RTO Settlement Statements	397	NA
58	SchedulePurchasesSalesOfAncillaryServicesAbstract Purchase and Sale of Ancillary Services	398
59	ScheduleMonthlyTransmissionSystemPeakLoadAbstract Monthly Transmission System Peak Load	400	NA
60	ScheduleMonthlyIsoOrRtoTransmissionSystemPeakLoadAbstract Monthly ISO/RTO Transmission System Peak Load	400a	NA
61	ScheduleElectricEnergyAccountAbstract Electric Energy Account	401a
62	ScheduleMonthlyPeakAndOutputAbstract Monthly Peaks and Output	401b
63	ScheduleSteamElectricGeneratingPlantStatisticsAbstract Steam Electric Generating Plant Statistics	402
64	ScheduleHydroelectricGeneratingPlantStatisticsAbstract Hydroelectric Generating Plant Statistics	406
65	SchedulePumpedStorageGeneratingPlantStatisticsAbstract Pumped Storage Generating Plant Statistics	408
66	ScheduleGeneratingPlantStatisticsAbstract Generating Plant Statistics Pages	410
0	ScheduleEnergyStorageOperationsLargePlantsAbstract Energy Storage Operations (Large Plants)	414
67	ScheduleTransmissionLineStatisticsAbstract Transmission Line Statistics Pages	422
68	ScheduleTransmissionLinesAddedAbstract Transmission Lines Added During Year	424
69	ScheduleSubstationsAbstract Substations	426
70	ScheduleTransactionsWithAssociatedAffiliatedCompaniesAbstract Transactions with Associated (Affiliated) Companies	429
71	FootnoteDataAbstract Footnote Data	450
	StockholdersReportsAbstract Stockholders' Reports (check appropriate box)
	Stockholders' Reports Check appropriate box: ☐ Two copies will be submitted ☐ No annual report to stockholders is prepared

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

GENERAL INFORMATION
1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general corporate books are kept, and address of office where any other corporate books of account are kept, if different from that where the general corporate books are kept. Jeffery W. Hoersdig 1 Riverside Plaza, Columbus, OH 43215-2373
2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation. If incorporated under a special law, give reference to such law. If not incorporated, state that fact and give the type of organization and the date organized. State of Incorporation: Date of Incorporation: Incorporated Under Special Law:
3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee, (b) date such receiver or trustee took possession, (c) the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased. (a) Name of Receiver or Trustee Holding Property of the Respondent: (b) Date Receiver took Possession of Respondent Property: (c) Authority by which the Receivership or Trusteeship was created: (d) Date when possession by receiver or trustee ceased:
4. State the classes or utility and other services furnished by respondent during the year in each State in which the respondent operated. Electric - Tennessee
5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for your previous year's certified financial statements? (1) ☐ Yes (2) ☑ No

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

CONTROL OVER RESPONDENT
1. If any corporation, business trust, or similar organization or a combination of such organizations jointly held control over the respondent at the end of the year, state name of controlling corporation or organization, manner in which control was held, and extent of control. If control was in a holding company organization, show the chain of ownership or control to the main parent company or organization. If control was held by a trustee(s), state name of trustee(s), name of beneficiary or beneficiaries for whom trust was maintained, and purpose of the trust.

American Electric Power Company, Inc. - Ownership of 100% of Respondent's Common Stock.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

CORPORATIONS CONTROLLED BY RESPONDENT
Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming any intermediaries involved. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests. Definitions See the Uniform System of Accounts for a definition of control. Direct control is that which is exercised without interposition of an intermediary. Indirect control is that which is exercised by the interposition of an intermediary which exercises direct control. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line No.	NameOfCompanyControlledByRespondent Name of Company Controlled (a)	CompanyControlledByRespondentKindOfBusinessDescription Kind of Business (b)	VotingStockOwnedByRespondentPercentage Percent Voting Stock Owned (c)	FootnoteReferences Footnote Ref. (d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
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25
26
27

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

OFFICERS
Report below the name, title and salary for each executive officer whose salary is $50,000 or more. An "executive officer" of a respondent includes its president, secretary, treasurer, and vice president in charge of a principal business unit, division or function (such as sales, administration or finance), and any other person who performs similar policy making functions. If a change was made during the year in the incumbent of any position, show name and total remuneration of the previous incumbent, and the date the change in incumbency was made.
Line No.	OfficerTitle Title (a)	OfficerName Name of Officer (b)	OfficerSalary Salary for Year (c)	DateOfficerIncumbencyStarted Date Started in Period (d)	DateOfficerIncumbencyEnded Date Ended in Period (e)
1	(a) Footnote

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: OfficerTitle

The following table provides summary information concerning compensation earned by our Chief Executive Officer, our two Chief Financial Officers during 2022, the three other most highly compensated executive officers and one additional former executive officer whose compensation would have been among the three other most highly compensated executive officers if she had been an executive officer at year end. We refer collectively to this group as the named executive officers.


Name and Principal Position	Year	Salary ($)(1)	Bonus ($)	Stock Awards ($)(2)	Non-Equity Incentive Plan Compensation ($)(3)	Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)(4)	All Other Compensation ($)(5)	Total ($)
Nicholas K. Akins
Chair of the Board and Chief Executive Officer	2022	1,510,000		10,824,690	3,620,000	204,063	216,755	16,375,508


Julia A. Sloat
Executive Vice President and Chief Financial Officer	2022	779,769		3,948,384	1,010,000		77,810	5,815,963


Ann P. Kelly
Executive Vice President and Chief Financial Officer	2022	61,923		393,121	55,750		9,974	520,768


David M. Feinberg
Executive Vice President, General Counsel and Secretary	2022	714,000		1,623,710	805,000		63,163	3,205,873


Charles E. Zebula
Executive Vice President - Portfolio Optimization	2022	593,000		1,407,162	705,000		67,856	2,773,018


Paul Chodak, III
Executive Vice President - Generation	2022	551,500	—	1,407,162	622,890	—	63,366	2,644,918


Lisa M. Barton
Former Exec. Vice President and Chief Operations Officer	2022	686,054	—	2,597,880	—	15,083	154,503	3,453,520

(1) Amounts in the salary column are composed of executive salaries earned for the year shown, which include 260 days of pay for 2022 , which is the number of workdays and holidays in a standard year.

(2) The amounts reported in this column reflect the aggregate grant date fair value calculated in accordance with FASB ASC Topic 718 of the performance shares, restricted stock units (RSUs) and unrestricted shares granted under our Long-Term Incentive Plan. See Note 15 to the Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2022 for a discussion of the relevant assumptions used in calculating these amounts. The number of shares realized and the value of the performance shares, if any, will depend on the Company’s performance during a 3-year performance period. The potential payout can range from 0 percent to 200 percent of the target number of performance shares, plus any dividend equivalents. The value of the performance shares will be based on three measures: a Board approved cumulative operating earnings per share measure (Cumulative EPS 50%), a total shareholder return relative to peer companies (Relative TSR 40%) and a carbon free capacity mix (Carbon Free Capacity 10%). The grant date fair value of the 2022 performance shares that are based on Cumulative EPS was computed in accordance with FASB ASC Topic 718 and was measured based on the closing price of AEP’s common stock on the grant date. The maximum amount payable for the 2022 performance shares that are based on Cumulative EPS measured on the grant date was $7,500,054 for Mr. Akins; $1,350,018 for Ms. Sloat; $109,965 for Ms. Kelly, $1,125,029 for Mr. Feinberg; $974,951 for Mr. Zebula; $974,951 for Mr. Chodak and $1,799,996 for Ms. Barton. The maximum amount payable for the 2022 performance shares that are based on Carbon Free Capacity is equal to $1,500,011 for Mr. Akins; $270,004 for Ms. Sloat; $21,993 for Ms. Kelly; $225,006 for Mr. Feinberg; $194,990 for Mr. Zebula, $194,990 for Mr. Chodak and $359,999 for Ms. Barton. The grant date fair value of the 2022 performance shares that are based on Relative TSR is calculated using a Monte-Carlo model as of the date of grant, in accordance with FASB ASC Topic 718. Because the performance shares that are based on

Relative TSR are subject to market conditions as defined under FASB ASC Topic 718, they did not have a maximum value on the grant date that differed from the grant date fair values presented in the table. Instead, the maximum value is factored into the calculation of the grant date fair value. The values realized from the 2020 performance shares are included in the Option Exercises and Stock Vested for 2022 table.

(3) The amounts shown in this column reflect annual incentive compensation paid for the year shown.

(4) The amounts shown in this column are attributable to the increase in the actuarial values of each of the named executive officer’s combined benefits under AEP’s qualified and non-qualified defined benefit pension plans determined using interest rate and mortality assumptions consistent with those used in the Company’s financial statements. Negative values of ($41,465), ($131,041) ($245,983) and ($27,352) for Ms. Sloat and Messrs. Feinberg, Zebula and Chodak, respectfully, were replaced with $0 for the purposes of the Summary Compensation Table. See the Pension Benefits for 2022 table and related footnotes for additional information. See Note 8 to the Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2022 for a discussion of the relevant assumptions. None of the named executive officers received preferential or above-market earnings on deferred compensation.

(5) Amounts shown in the All Other Compensation column for 2022 include: (a) Company matching contributions to the Company’s Retirement Savings Plan, (b) Company matching contributions to the Company’s Supplemental Retirement Savings Plan, (c) perquisites, (d) vacation payout, and (e) severance benefits. The 2022 values for these items are listed in the following table:


Type	Nicholas K. Akins		Julia A. Sloat		Ann P. Kelly		David M. Feinberg		Charles E. Zebula		Paul Chodak, III		Lisa M. Barton
Retirement Savings Plan Match	13,725		13,725		1,212		13,725		13,725		13,725		13,725
Supplemental Retirement Savings Plan Match	182,475		49,829				49,438		41,746		35,516		57,890
Relocation					8,762
Perquisites	20,555		14,256						12,385		14,125		14,125
Vacation Payout	—		—		—		—		—				68,763
Severance	—		—		—		—		—
Total	$	216,755	$	77,810	$	9,974	$	63,163	$	67,856	$	63,366	$	154,503

(6) Ms. Sloat's compensation is provided only for the years in which she was an executive officer of the Company.

Perquisites provided in 2022 included: financial counseling and tax preparation services and, for Mr. Akins, director’s group travel accident insurance premium. Executive officers may also have the occasional personal use of event tickets when such tickets are not being used for business purposes, however, there is no associated incremental cost. From time-to-time executive officers may receive customary gifts from third parties that sponsor events (subject to our policies on conflicts of interest).

Provided Ms. Barton complies with the terms of her Executive Severance, Noncompetition and Release of All Claims Agreement, she will receive $1,520,700 in cash severance benefits and up to $15,650 in outplacement services in 2023 in connection with her 2022 separation from AEP employment.

Mr. Akins has entered into an Aircraft Time Sharing Agreement that allows him to use our corporate aircraft for personal use for a limited number of hours each year. The Aircraft Time Sharing Agreement requires Mr. Akins to reimburse the Company for the cost of his personal use of corporate aircraft in accordance with limits set forth in Federal Aviation Administration regulations. Mr. Akins reimbursed the Company all incremental costs incurred in connection with personal flights under the Aircraft Timesharing Agreement including fuel, oil, hangar costs, crew travel expenses, catering, landing fees and other incremental airport fees. Accordingly, no value is shown for these amounts in the Summary Compensation Table. If the aircraft flies empty before picking up or after dropping off Mr. Akins at a destination on a personal flight, the cost of the empty flight is included in the incremental cost for which Mr. Akins reimburses the Company. Since AEP aircraft are used predominantly for business purposes, we do not include fixed costs that do not change in amount based on usage, such as depreciation and pilot salaries.

Due to her promotion to CEO, in February 2023 the Company entered into a TSA with Ms. Sloat on substantively the same terms as Mr. Akins' TSA.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

DIRECTORS
Report below the information called for concerning each director of the respondent who held office at any time during the year. Include in column (a), name and abbreviated titles of the directors who are officers of the respondent. Provide the principle place of business in column (b), designate members of the Executive Committee in column (c), and the Chairman of the Executive Committee in column (d).
Line No.	NameAndTitleOfDirector Name (and Title) of Director (a)	PrincipalBusinessAddress Principal Business Address (b)	MemberOfTheExecutiveCommittee Member of the Executive Committee (c)	ChairmanOfTheExecutiveCommittee Chairman of the Executive Committee (d)
1	Nicholas K. Akins, Chairman of the Board and Chief Executive Officer	Columbus, Ohio	false	false
2	Julia A. Sloat, Chief Financial Officer and Vice President	Columbus, Ohio	false	false
3	Christian T. Beam , President and Chief Operating Officer	Columbus, Ohio	false	false
4	Paul Chodak, Vice President	Columbus, Ohio	false	false
5	David M. Feinberg, Vice President and Secretary	Columbus, Ohio	false	false
6	Ann P. Kelly, Vice President and Chief Financial Officer	Columbus, Ohio	false	false
7	Therace M. Risch, Vice President	Columbus, Ohio	false	false
8	Peggy I.Simmons,Executive Vice President, Utilities	Columbus, Ohio	false	false
9	Toby L. Thomas, Vice President	Columbus, Ohio	false	false
10	Rajagopalan.Sundararajan,Executive Vice President, External Affairs,	Columbus, Ohio	false	false
11	Phillip R.Ulrich,Vice President	Columbus, Ohio	false	false
12	Aaron D.Walker, President and Chief Operating Officer	Charleston,WV	false	false
13	Lisa M. Barton, Vice President	Columbus, Ohio	false	false
14	Charles R. Patton	Columbus, Ohio	false	false

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

INFORMATION ON FORMULA RATES
Does the respondent have formula rates?		☑ Yes ☐ No
Please list the Commission accepted formula rates including FERC Rate Schedule or Tariff Number and FERC proceeding (i.e. Docket No) accepting the rate(s) or changes in the accepted rate.
Line No.	RateScheduleTariffNumber FERC Rate Schedule or Tariff Number (a)	ProceedingDocketNumber FERC Proceeding (b)
1	PJM Interconnection LLC - Attachment H-14	ER17-405

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

INFORMATION ON FORMULA RATES - FERC Rate Schedule/Tariff Number FERC Proceeding
Does the respondent file with the Commission annual (or more frequent) filings containing the inputs to the formula rate(s)?			☑ Yes ☐ No
If yes, provide a listing of such filings as contained on the Commission's eLibrary website.
Line No.	AccessionNumber Accession No. (a)	DocumentDate Document Date / Filed Date (b)	DocketNumber Docket No. (c)	DescriptionOfFiling Description (d)	RateScheduleTariffNumber Formula Rate FERC Rate Schedule Number or Tariff Number (e)
1	20221208-5094	12/08/2022	ER17-405	AEP PJM OATT Proj Transmission	PJM OATT Attachment H-14
2	20221101-5174	11/01/2022	ER17-405	AEP PJM OATT Proj Transmission	PJM OATT Attachment H-14
3	20220527-5370	05/27/2022	ER17-405	AEP PJM OATT Proj Transmission	PJM OATT Attachment H-14

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

INFORMATION ON FORMULA RATES - Formula Rate Variances
If a respondent does not submit such filings then indicate in a footnote to the applicable Form 1 schedule where formula rate inputs differ from amounts reported in the Form 1. The footnote should provide a narrative description explaining how the "rate" (or billing) was derived if different from the reported amount in the Form 1. The footnote should explain amounts excluded from the ratebase or where labor or other allocation factors, operating expenses, or other items impacting formula rate inputs differ from amounts reported in Form 1 schedule amounts. Where the Commission has provided guidance on formula rate inputs, the specific proceeding should be noted in the footnote.
Line No.	PageNumberOfFormulaRateVariances Page No(s). (a)	ScheduleOfFormulaRateVariances Schedule (b)	ColumnOfFormulaRateVariances Column (c)	LineNumberOfFormulaRateVariances Line No. (d)
1	Not Applicable

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

IMPORTANT CHANGES DURING THE QUARTER/YEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries. Each inquiry should be answered. Enter "none," "not applicable," or "NA" where applicable. If information which answers an inquiry is given elsewhere in the report, make a reference to the schedule in which it appears. Changes in and important additions to franchise rights: Describe the actual consideration given therefore and state from whom the franchise rights were acquired. If acquired without the payment of consideration, state that fact. Acquisition of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names of companies involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to Commission authorization. Purchase or sale of an operating unit or system: Give a brief description of the property, and of the transactions relating thereto, and reference to Commission authorization, if any was required. Give date journal entries called for by the Uniform System of Accounts were submitted to the Commission. Important leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give effective dates, lengths of terms, names of parties, rents, and other condition. State name of Commission authorizing lease and give reference to such authorization. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or ceased and give reference to Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate annual revenues of each class of service. Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase contract or otherwise, giving location and approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc. Obligations incurred as a result of issuance of securities or assumption of liabilities or guarantees including issuance of short-term debt and commercial paper having a maturity of one year or less. Give reference to FERC or State Commission authorization, as appropriate, and the amount of obligation or guarantee. Changes in articles of incorporation or amendments to charter: Explain the nature and purpose of such changes or amendments. State the estimated annual effect and nature of any important wage scale changes during the year. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings culminated during the year. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer, director, security holder reported on Pages 104 or 105 of the Annual Report Form No. 1, voting trustee, associated company or known associate of any of these persons was a party or in which any such person had a material interest. (Reserved.) If the important changes during the year relating to the respondent company appearing in the annual report to stockholders are applicable in every respect and furnish the data required by Instructions 1 to 11 above, such notes may be included on this page. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred during the reporting period. In the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30 percent please describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a cash management program(s). Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.

None
None
None
None
None
$15M Intercompany Notes Senior Notes, Series E,( TN Regulatory commission Authority:21-00125, FERC Authority: Docket No. ES22-15-000, Issued: 1/25/2022, Maturity: 2/1/2042 $5M Intercompany Notes Senior Notes, Series F,( TN Regulatory commission Authority:21-00125, FERC Authority: Docket No. ES22-15-000, Issued: 8/5/2022, Maturity: 8/1/2032
None
41 IBEW #934 employees granted a 2% wage increase
Please refer to the Notes to Financial Statements pages 122-123
None
Not Used
Rajagopalan Sundararajan elected as Director effective on 07/02/2022 David M. Feinberg elected as Vice president effective on 08/25/2022 Aaron D. Walker elected as President,Director and Chief Operating Officer effective on 09/22/2022 Peggy I. Simmons elected as Director effective on 09/22/2022 Philip R. Ulrich elected as Director on 9/22/2022 and Vice president effective on 09/14/2022 Lisa M. Barton Resigned as Director effective on 09/20/2022 Charles R. Patton resigned as Director effective on 07/02/2022 Christian T. Beam Resigned as President and Chief Operating Officer effective on 09/21/2022 Aaron D. Walker Resigned as Vice President- Distribution Region Operations effective on 9/21/2022 Joel H Jansen elected as Vice President effective on 10/28/2022 Ann P Kelly elected as Vice President & Chief Financial Officer effective on 11/30/2022 and Director effective on 12/14/2022 Nicholas K Akins resigned as Director, Chairman of the Board and Chief Executive Officer effective 12/31/2022 Lisa M Barton resigned as Vice President effective on 11/12022 Julia A Sloat resigned as Vice President and Chief Financial Officer effective 11/29/2022
Proprietary capital ratio exceeds 30%

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line No.	Title of Account (a)	Ref. Page No. (b)	Current Year End of Quarter/Year Balance (c)	Prior Year End Balance 12/31 (d)
1	UtilityPlantAbstract UTILITY PLANT
2	UtilityPlant Utility Plant (101-106, 114)	200	289,961,077	272,297,072
3	ConstructionWorkInProgress Construction Work in Progress (107)	200	24,049,222	9,575,041
4	UtilityPlantAndConstructionWorkInProgress TOTAL Utility Plant (Enter Total of lines 2 and 3)		314,010,299	281,872,113
5	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility (Less) Accum. Prov. for Depr. Amort. Depl. (108, 110, 111, 115)	200	96,962,084	91,905,098
6	UtilityPlantNet Net Utility Plant (Enter Total of line 4 less 5)		217,048,215	189,967,015
7	NuclearFuelInProcessOfRefinementConversionEnrichmentAndFabrication Nuclear Fuel in Process of Ref., Conv., Enrich., and Fab. (120.1)	202
8	NuclearFuelMaterialsAndAssembliesStockAccountMajorOnly Nuclear Fuel Materials and Assemblies-Stock Account (120.2)
9	NuclearFuelAssembliesInReactorMajorOnly Nuclear Fuel Assemblies in Reactor (120.3)
10	SpentNuclearFuelMajorOnly Spent Nuclear Fuel (120.4)
11	NuclearFuelUnderCapitalLeases Nuclear Fuel Under Capital Leases (120.6)
12	AccumulatedProvisionForAmortizationOfNuclearFuelAssemblies (Less) Accum. Prov. for Amort. of Nucl. Fuel Assemblies (120.5)	202
13	NuclearFuelNet Net Nuclear Fuel (Enter Total of lines 7-11 less 12)
14	UtilityPlantAndNuclearFuelNet Net Utility Plant (Enter Total of lines 6 and 13)		217,048,215	189,967,015
15	OtherElectricPlantAdjustments Utility Plant Adjustments (116)
16	GasStoredUndergroundNoncurrent Gas Stored Underground - Noncurrent (117)
17	OtherPropertyAndInvestmentsAbstract OTHER PROPERTY AND INVESTMENTS
18	NonutilityProperty Nonutility Property (121)		78,622	78,622
19	AccumulatedProvisionForDepreciationAndAmortizationOfNonutilityProperty (Less) Accum. Prov. for Depr. and Amort. (122)
20	InvestmentInAssociatedCompanies Investments in Associated Companies (123)
21	InvestmentInSubsidiaryCompanies Investment in Subsidiary Companies (123.1)	224
23	NoncurrentPortionOfAllowances Noncurrent Portion of Allowances	228
24	OtherInvestments Other Investments (124)		3	3
25	SinkingFunds Sinking Funds (125)
26	DepreciationFund Depreciation Fund (126)
27	AmortizationFundFederal Amortization Fund - Federal (127)
28	OtherSpecialFunds Other Special Funds (128)
29	SpecialFunds Special Funds (Non Major Only) (129)		2,638,170	3,970,347
30	DerivativeInstrumentAssetsLongTerm Long-Term Portion of Derivative Assets (175)
31	DerivativeInstrumentAssetsHedgesLongTerm Long-Term Portion of Derivative Assets - Hedges (176)
32	OtherPropertyAndInvestments TOTAL Other Property and Investments (Lines 18-21 and 23-31)		2,716,795	4,048,972
33	CurrentAndAccruedAssetsAbstract CURRENT AND ACCRUED ASSETS
34	CashAndWorkingFunds Cash and Working Funds (Non-major Only) (130)
35	Cash Cash (131)		358,713	98,529
36	SpecialDeposits Special Deposits (132-134)		4,872	13,537
37	WorkingFunds Working Fund (135)
38	TemporaryCashInvestments Temporary Cash Investments (136)
39	NotesReceivable Notes Receivable (141)
40	CustomerAccountsReceivable Customer Accounts Receivable (142)		10,336,279	3,008,961
41	OtherAccountsReceivable Other Accounts Receivable (143)		24,698	4,853
42	AccumulatedProvisionForUncollectibleAccountsCredit (Less) Accum. Prov. for Uncollectible Acct.-Credit (144)
43	NotesReceivableFromAssociatedCompanies Notes Receivable from Associated Companies (145)
44	AccountsReceivableFromAssociatedCompanies Accounts Receivable from Assoc. Companies (146)		1,525,358	1,091,419
45	FuelStock Fuel Stock (151)	227
46	FuelStockExpensesUndistributed Fuel Stock Expenses Undistributed (152)	227
47	Residuals Residuals (Elec) and Extracted Products (153)	227
48	PlantMaterialsAndOperatingSupplies Plant Materials and Operating Supplies (154)	227	959,962	488,276
49	Merchandise Merchandise (155)	227
50	OtherMaterialsAndSupplies Other Materials and Supplies (156)	227
51	NuclearMaterialsHeldForSale Nuclear Materials Held for Sale (157)	202/227
52	AllowanceInventoryAndWithheld Allowances (158.1 and 158.2)	228
53	NoncurrentPortionOfAllowances (Less) Noncurrent Portion of Allowances	228
54	StoresExpenseUndistributed Stores Expense Undistributed (163)	227
55	GasStoredCurrent Gas Stored Underground - Current (164.1)
56	LiquefiedNaturalGasStoredAndHeldForProcessing Liquefied Natural Gas Stored and Held for Processing (164.2-164.3)
57	Prepayments Prepayments (165)		2,209,548	2,211,970
58	AdvancesForGas Advances for Gas (166-167)
59	InterestAndDividendsReceivable Interest and Dividends Receivable (171)
60	RentsReceivable Rents Receivable (172)		396,126	335,483
61	AccruedUtilityRevenues Accrued Utility Revenues (173)		104,347	623,594
62	MiscellaneousCurrentAndAccruedAssets Miscellaneous Current and Accrued Assets (174)
63	DerivativeInstrumentAssets Derivative Instrument Assets (175)		490	18
64	DerivativeInstrumentAssetsLongTerm (Less) Long-Term Portion of Derivative Instrument Assets (175)
65	DerivativeInstrumentAssetsHedges Derivative Instrument Assets - Hedges (176)
66	DerivativeInstrumentAssetsHedgesLongTerm (Less) Long-Term Portion of Derivative Instrument Assets - Hedges (176)
67	CurrentAndAccruedAssets Total Current and Accrued Assets (Lines 34 through 66)		15,920,392	7,876,639
68	DeferredDebitsAbstract DEFERRED DEBITS
69	UnamortizedDebtExpense Unamortized Debt Expenses (181)			1,091
70	ExtraordinaryPropertyLosses Extraordinary Property Losses (182.1)	230a
71	UnrecoveredPlantAndRegulatoryStudyCosts Unrecovered Plant and Regulatory Study Costs (182.2)	230b
72	OtherRegulatoryAssets Other Regulatory Assets (182.3)	232	57,781,161	30,312,968
73	PreliminarySurveyAndInvestigationCharges Prelim. Survey and Investigation Charges (Electric) (183)
74	PreliminaryNaturalGasSurveyAndInvestigationChargesAndOtherPreliminarySurveyAndInvestigationCharges Preliminary Natural Gas Survey and Investigation Charges 183.1)
75	OtherPreliminarySurveyAndInvestigationCharges Other Preliminary Survey and Investigation Charges (183.2)
76	ClearingAccounts Clearing Accounts (184)
77	TemporaryFacilities Temporary Facilities (185)
78	MiscellaneousDeferredDebits Miscellaneous Deferred Debits (186)	233	1,516,971	403,366
79	DeferredLossesFromDispositionOfUtilityPlant Def. Losses from Disposition of Utility Plt. (187)
80	ResearchDevelopmentAndDemonstrationExpenditures Research, Devel. and Demonstration Expend. (188)	352
81	UnamortizedLossOnReacquiredDebt Unamortized Loss on Reaquired Debt (189)
82	AccumulatedDeferredIncomeTaxes Accumulated Deferred Income Taxes (190)	234	9,050,879	9,077,327
83	UnrecoveredPurchasedGasCosts Unrecovered Purchased Gas Costs (191)
84	DeferredDebits Total Deferred Debits (lines 69 through 83)		68,349,012	39,794,752
85	AssetsAndOtherDebits TOTAL ASSETS (lines 14-16, 32, 67, and 84)		304,034,414	241,687,379

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Line No.	Title of Account (a)	Ref. Page No. (b)	Current Year End of Quarter/Year Balance (c)	Prior Year End Balance 12/31 (d)
1	ProprietaryCapitalAbstract PROPRIETARY CAPITAL
2	CommonStockIssued Common Stock Issued (201)	250	4,100,000	4,100,000
3	PreferredStockIssued Preferred Stock Issued (204)	250
4	CapitalStockSubscribed Capital Stock Subscribed (202, 205)
5	StockLiabilityForConversion Stock Liability for Conversion (203, 206)
6	PremiumOnCapitalStock Premium on Capital Stock (207)
7	OtherPaidInCapital Other Paid-In Capital (208-211)	253	55,800,000	40,800,000
8	InstallmentsReceivedOnCapitalStock Installments Received on Capital Stock (212)	252
9	DiscountOnCapitalStock (Less) Discount on Capital Stock (213)	254
10	CapitalStockExpense (Less) Capital Stock Expense (214)	254b
11	RetainedEarnings Retained Earnings (215, 215.1, 216)	118	39,423,791	31,967,845
12	UnappropriatedUndistributedSubsidiaryEarnings Unappropriated Undistributed Subsidiary Earnings (216.1)	118
13	ReacquiredCapitalStock (Less) Reaquired Capital Stock (217)	250
14	NoncorporateProprietorship Noncorporate Proprietorship (Non-major only) (218)
15	AccumulatedOtherComprehensiveIncome Accumulated Other Comprehensive Income (219)	122(a)(b)
16	ProprietaryCapital Total Proprietary Capital (lines 2 through 15)		99,323,791	76,867,845
17	LongTermDebtAbstract LONG-TERM DEBT
18	Bonds Bonds (221)	256
19	ReacquiredBonds (Less) Reaquired Bonds (222)	256
20	AdvancesFromAssociatedCompanies Advances from Associated Companies (223)	256	85,000,000	65,000,000
21	OtherLongTermDebt Other Long-Term Debt (224)	256
22	UnamortizedPremiumOnLongTermDebt Unamortized Premium on Long-Term Debt (225)
23	UnamortizedDiscountOnLongTermDebtDebit (Less) Unamortized Discount on Long-Term Debt-Debit (226)
24	LongTermDebt Total Long-Term Debt (lines 18 through 23)		85,000,000	65,000,000
25	OtherNoncurrentLiabilitiesAbstract OTHER NONCURRENT LIABILITIES
26	ObligationsUnderCapitalLeaseNoncurrent Obligations Under Capital Leases - Noncurrent (227)		2,275,130	2,608,299
27	AccumulatedProvisionForPropertyInsurance Accumulated Provision for Property Insurance (228.1)
28	AccumulatedProvisionForInjuriesAndDamages Accumulated Provision for Injuries and Damages (228.2)
29	AccumulatedProvisionForPensionsAndBenefits Accumulated Provision for Pensions and Benefits (228.3)		965,641	222,652
30	AccumulatedMiscellaneousOperatingProvisions Accumulated Miscellaneous Operating Provisions (228.4)
31	AccumulatedProvisionForRateRefunds Accumulated Provision for Rate Refunds (229)		120,065
32	LongTermPortionOfDerivativeInstrumentLiabilities Long-Term Portion of Derivative Instrument Liabilities
33	LongTermPortionOfDerivativeInstrumentLiabilitiesHedges Long-Term Portion of Derivative Instrument Liabilities - Hedges
34	AssetRetirementObligations Asset Retirement Obligations (230)		1,000	30,464
35	OtherNoncurrentLiabilities Total Other Noncurrent Liabilities (lines 26 through 34)		3,361,837	2,861,415
36	CurrentAndAccruedLiabilitiesAbstract CURRENT AND ACCRUED LIABILITIES
37	NotesPayable Notes Payable (231)
38	AccountsPayable Accounts Payable (232)		6,896,275	3,305,569
39	NotesPayableToAssociatedCompanies Notes Payable to Associated Companies (233)		6,208,689	19,859,075
40	AccountsPayableToAssociatedCompanies Accounts Payable to Associated Companies (234)		36,961,486	15,973,496
41	CustomerDeposits Customer Deposits (235)		4,263,753	4,266,453
42	TaxesAccrued Taxes Accrued (236)	262	2,588,255	626,845
43	InterestAccrued Interest Accrued (237)		1,484,284	1,457,284
44	DividendsDeclared Dividends Declared (238)
45	MaturedLongTermDebt Matured Long-Term Debt (239)
46	MaturedInterest Matured Interest (240)
47	TaxCollectionsPayable Tax Collections Payable (241)		291,907	217,598
48	MiscellaneousCurrentAndAccruedLiabilities Miscellaneous Current and Accrued Liabilities (242)		1,778,423	1,786,746
49	ObligationsUnderCapitalLeasesCurrent Obligations Under Capital Leases-Current (243)		570,328	541,025
50	DerivativesInstrumentLiabilities Derivative Instrument Liabilities (244)		5,729
51	LongTermPortionOfDerivativeInstrumentLiabilities (Less) Long-Term Portion of Derivative Instrument Liabilities
52	DerivativeInstrumentLiabilitiesHedges Derivative Instrument Liabilities - Hedges (245)
53	LongTermPortionOfDerivativeInstrumentLiabilitiesHedges (Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges
54	CurrentAndAccruedLiabilities Total Current and Accrued Liabilities (lines 37 through 53)		61,037,671	46,780,401
55	DeferredCreditsAbstract DEFERRED CREDITS
56	CustomerAdvancesForConstruction Customer Advances for Construction (252)
57	AccumulatedDeferredInvestmentTaxCredits Accumulated Deferred Investment Tax Credits (255)	266
58	DeferredGainsFromDispositionOfUtilityPlant Deferred Gains from Disposition of Utility Plant (256)
59	OtherDeferredCredits Other Deferred Credits (253)	269	1,251,232	1,042,217
60	OtherRegulatoryLiabilities Other Regulatory Liabilities (254)	278	8,609,976	12,087,673
61	UnamortizedGainOnReacquiredDebt Unamortized Gain on Reaquired Debt (257)
62	AccumulatedDeferredIncomeTaxesAcceleratedAmortizationProperty Accum. Deferred Income Taxes-Accel. Amort.(281)	272
63	AccumulatedDeferredIncomeTaxesOtherProperty Accum. Deferred Income Taxes-Other Property (282)		24,066,763	23,594,755
64	AccumulatedDeferredIncomeTaxesOther Accum. Deferred Income Taxes-Other (283)		21,383,145	13,453,074
65	DeferredCredits Total Deferred Credits (lines 56 through 64)		55,311,116	50,177,718
66	LiabilitiesAndOtherCredits TOTAL LIABILITIES AND STOCKHOLDER EQUITY (lines 16, 24, 35, 54 and 65)		304,034,414	241,687,379

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENT OF INCOME
Quarterly Report in column (c) the current year to date balance. Column (c) equals the total of adding the data in column (g) plus the data in column (i) plus the data in column (k). Report in column (d) similar data for the previous year. This information is reported in the annual filing only. Enter in column (e) the balance for the reporting quarter and in column (f) the balance for the same three month period for the prior year. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amounts for gas utility, and in column (k) the quarter to date amounts for other utility function for the current year quarter. Report in column (h) the quarter to date amounts for electric utility function; in column (j) the quarter to date amounts for gas utility, and in column (l) the quarter to date amounts for other utility function for the prior year quarter. If additional columns are needed, place them in a footnote. Annual or Quarterly if applicable Do not report fourth quarter data in columns (e) and (f) Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility column in a similar manner to a utility department. Spread the amount(s) over Lines 2 thru 26 as appropriate. Include these amounts in columns (c) and (d) totals. Report amounts in account 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above. Use page 122 for important notes regarding the statement of income for any account thereof. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be made to the utility's customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effected the gross revenues or costs to which the contingency relates and the tax effects together with an explanation of the major factors which affect the rights of the utility to retain such revenues or recover amounts paid with respect to power or gas purchases. Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting revenues received or costs incurred for power or gas purchases, and a summary of the adjustments made to balance sheet, income, and expense accounts. If any notes appearing in the report to stockholders are applicable to the Statement of Income, such notes may be included at page 122. Enter on page 122 a concise explanation of only those changes in accounting methods made during the year which had an effect on net income, including the basis of allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes. Explain in a footnote if the previous year's/quarter's figures are different from that reported in prior reports. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to this schedule.
Line No.	Title of Account (a)	(Ref.) Page No. (b)	Total Current Year to Date Balance for Quarter/Year (c)	Total Prior Year to Date Balance for Quarter/Year (d)	Current 3 Months Ended - Quarterly Only - No 4th Quarter (e)	Prior 3 Months Ended - Quarterly Only - No 4th Quarter (f)	Electric Utility Current Year to Date (in dollars) (g)	Electric Utility Previous Year to Date (in dollars) (h)	Gas Utiity Current Year to Date (in dollars) (i)	Gas Utility Previous Year to Date (in dollars) (j)	Other Utility Current Year to Date (in dollars) (k)	Other Utility Previous Year to Date (in dollars) (l)
1	UtilityOperatingIncomeAbstract UTILITY OPERATING INCOME
2	OperatingRevenues Operating Revenues (400)	300	189,882,400	156,747,730			189,882,400	156,747,730
3	OperatingExpensesAbstract Operating Expenses
4	OperationExpense Operation Expenses (401)	320	150,730,390	122,957,865			150,730,390	122,957,865
5	MaintenanceExpense Maintenance Expenses (402)	320	11,085,950	8,543,809			11,085,950	8,543,809
6	DepreciationExpense Depreciation Expense (403)	336	8,241,261	7,960,988			8,241,261	7,960,988
7	DepreciationExpenseForAssetRetirementCosts Depreciation Expense for Asset Retirement Costs (403.1)	336	4,696	2,180			4,696	2,180
8	AmortizationAndDepletionOfUtilityPlant Amort. & Depl. of Utility Plant (404-405)	336	1,340,310	1,167,523			1,340,310	1,167,523
9	AmortizationOfElectricPlantAcquisitionAdjustments Amort. of Utility Plant Acq. Adj. (406)	336
10	AmortizationOfPropertyLossesUnrecoveredPlantAndRegulatoryStudyCosts Amort. Property Losses, Unrecov Plant and Regulatory Study Costs (407)
11	AmortizationOfConversionExpenses Amort. of Conversion Expenses (407.2)
12	RegulatoryDebits Regulatory Debits (407.3)		6,855	107,203			6,855	107,203
13	RegulatoryCredits (Less) Regulatory Credits (407.4)		300,332	107,105			300,332	107,105
14	TaxesOtherThanIncomeTaxesUtilityOperatingIncome Taxes Other Than Income Taxes (408.1)	262	10,752,494	10,514,060			10,752,494	10,514,060
15	IncomeTaxesOperatingIncome Income Taxes - Federal (409.1)	262	5,596,578	709,004			5,596,578	709,004
16	IncomeTaxesUtilityOperatingIncomeOther Income Taxes - Other (409.1)	262	28,911	13,998			28,911	13,998
17	ProvisionsForDeferredIncomeTaxesUtilityOperatingIncome Provision for Deferred Income Taxes (410.1)	234, 272	14,109,725	7,713,148			14,109,725	7,713,148
18	ProvisionForDeferredIncomeTaxesCreditOperatingIncome (Less) Provision for Deferred Income Taxes-Cr. (411.1)	234, 272	11,630,069	7,421,020			11,630,069	7,421,020
19	InvestmentTaxCreditAdjustments Investment Tax Credit Adj. - Net (411.4)	266
20	GainsFromDispositionOfPlant (Less) Gains from Disp. of Utility Plant (411.6)
21	LossesFromDispositionOfServiceCompanyPlant Losses from Disp. of Utility Plant (411.7)
22	GainsFromDispositionOfAllowances (Less) Gains from Disposition of Allowances (411.8)
23	LossesFromDispositionOfAllowances Losses from Disposition of Allowances (411.9)
24	AccretionExpense Accretion Expense (411.10)		3,328	1,522			3,328	1,522
25	UtilityOperatingExpenses TOTAL Utility Operating Expenses (Enter Total of lines 4 thru 24)		178,763,231	150,745,167			178,763,231	150,745,167
27	NetUtilityOperatingIncome Net Util Oper Inc (Enter Tot line 2 less 25)		11,119,169	6,002,563			11,119,169	6,002,563
28	OtherIncomeAndDeductionsAbstract Other Income and Deductions
29	OtherIncomeAbstract Other Income
30	NonutilityOperatingIncomeAbstract Nonutilty Operating Income
31	RevenuesFromMerchandisingJobbingAndContractWork Revenues From Merchandising, Jobbing and Contract Work (415)
32	CostsAndExpensesOfMerchandisingJobbingAndContractWork (Less) Costs and Exp. of Merchandising, Job. & Contract Work (416)
33	RevenuesFromNonutilityOperations Revenues From Nonutility Operations (417)
34	ExpensesOfNonutilityOperations (Less) Expenses of Nonutility Operations (417.1)
35	NonoperatingRentalIncome Nonoperating Rental Income (418)
36	EquityInEarningsOfSubsidiaryCompanies Equity in Earnings of Subsidiary Companies (418.1)	119
37	InterestAndDividendIncome Interest and Dividend Income (419)		4,231	668
38	AllowanceForOtherFundsUsedDuringConstruction Allowance for Other Funds Used During Construction (419.1)		183,538	71
39	MiscellaneousNonoperatingIncome Miscellaneous Nonoperating Income (421)		33,484	38,158
40	GainOnDispositionOfProperty Gain on Disposition of Property (421.1)
41	OtherIncome TOTAL Other Income (Enter Total of lines 31 thru 40)		221,252	38,755
42	OtherIncomeDeductionsAbstract Other Income Deductions
43	LossOnDispositionOfProperty Loss on Disposition of Property (421.2)
44	MiscellaneousAmortization Miscellaneous Amortization (425)
45	Donations Donations (426.1)		327,589	58,443
46	LifeInsurance Life Insurance (426.2)
47	Penalties Penalties (426.3)		49	2,368
48	ExpendituresForCertainCivicPoliticalAndRelatedActivities Exp. for Certain Civic, Political & Related Activities (426.4)		65,303	58,278
49	OtherDeductions Other Deductions (426.5)		813,342	400,501
50	OtherIncomeDeductions TOTAL Other Income Deductions (Total of lines 43 thru 49)		1,206,284	514,854
51	TaxesApplicableToOtherIncomeAndDeductionsAbstract Taxes Applic. to Other Income and Deductions
52	TaxesOtherThanIncomeTaxesOtherIncomeAndDeductions Taxes Other Than Income Taxes (408.2)	262	1,000	1,088
53	IncomeTaxesFederal Income Taxes-Federal (409.2)	262	264,074	125,723
54	IncomeTaxesOther Income Taxes-Other (409.2)	262	32,166	13,973
55	ProvisionForDeferredIncomeTaxesOtherIncomeAndDeductions Provision for Deferred Inc. Taxes (410.2)	234, 272	48,230	29,248
56	ProvisionForDeferredIncomeTaxesCreditOtherIncomeAndDeductions (Less) Provision for Deferred Income Taxes-Cr. (411.2)	234, 272	45,302	46,362
57	InvestmentTaxCreditAdjustmentsNonutilityOperations Investment Tax Credit Adj.-Net (411.5)
58	InvestmentTaxCredits (Less) Investment Tax Credits (420)
59	TaxesOnOtherIncomeAndDeductions TOTAL Taxes on Other Income and Deductions (Total of lines 52-58)		292,312	155,722
60	NetOtherIncomeAndDeductions Net Other Income and Deductions (Total of lines 41, 50, 59)		692,720	320,377
61	InterestChargesAbstract Interest Charges
62	InterestOnLongTermDebt Interest on Long-Term Debt (427)
63	AmortizationOfDebtDiscountAndExpense Amort. of Debt Disc. and Expense (428)
64	AmortizationOfLossOnReacquiredDebt Amortization of Loss on Reaquired Debt (428.1)
65	AmortizationOfPremiumOnDebtCredit (Less) Amort. of Premium on Debt-Credit (429)
66	AmortizationOfGainOnReacquiredDebtCredit (Less) Amortization of Gain on Reaquired Debt-Credit (429.1)
67	InterestOnDebtToAssociatedCompanies Interest on Debt to Assoc. Companies (430)		2,858,694	2,069,169
68	OtherInterestExpense Other Interest Expense (431)		319,031	301,006
69	AllowanceForBorrowedFundsUsedDuringConstructionCredit (Less) Allowance for Borrowed Funds Used During Construction-Cr. (432)		207,223	15,012
70	NetInterestCharges Net Interest Charges (Total of lines 62 thru 69)		2,970,502	2,355,163
71	IncomeBeforeExtraordinaryItems Income Before Extraordinary Items (Total of lines 27, 60 and 70)		7,455,946	3,327,023
72	ExtraordinaryItemsAbstract Extraordinary Items
73	ExtraordinaryIncome Extraordinary Income (434)
74	ExtraordinaryDeductions (Less) Extraordinary Deductions (435)
75	NetExtraordinaryItems Net Extraordinary Items (Total of line 73 less line 74)
76	IncomeTaxesExtraordinaryItems Income Taxes-Federal and Other (409.3)	262	0
77	ExtraordinaryItemsAfterTaxes Extraordinary Items After Taxes (line 75 less line 76)
78	NetIncomeLoss Net Income (Total of line 71 and 77)		7,455,946	3,327,023

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENT OF RETAINED EARNINGS
Do not report Lines 49-53 on the quarterly report. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436-439 inclusive). Show the contra primary account affected in column (b). State the purpose and amount for each reservation or appropriation of retained earnings. List first Account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow by credit, then debit items, in that order. Show dividends for each class and series of capital stock. Show separately the State and Federal income tax effect of items shown for Account 439, Adjustments to Retained Earnings. Explain in a footnote the basis for determining the amount reserved or appropriated. If such reservation or appropriation is to be recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated. If any notes appearing in the report to stockholders are applicable to this statement, attach them at page 122.
Line No.	Item (a)	Contra Primary Account Affected (b)	Current Quarter/Year Year to Date Balance (c)	Previous Quarter/Year Year to Date Balance (d)
	UnappropriatedRetainedEarningsAbstract UNAPPROPRIATED RETAINED EARNINGS (Account 216)
1	UnappropriatedRetainedEarnings Balance-Beginning of Period		31,967,845	29,640,819
2	ChangesAbstract Changes
3	AdjustmentsToRetainedEarningsAbstract Adjustments to Retained Earnings (Account 439)
4	AdjustmentsToRetainedEarningsCreditAbstract Adjustments to Retained Earnings Credit
9	AdjustmentsToRetainedEarningsCredit TOTAL Credits to Retained Earnings (Acct. 439)
10	AdjustmentsToRetainedEarningsDebitAbstract Adjustments to Retained Earnings Debit
15	AdjustmentsToRetainedEarningsDebit TOTAL Debits to Retained Earnings (Acct. 439)
16	BalanceTransferredFromIncome Balance Transferred from Income (Account 433 less Account 418.1)		7,455,946	3,327,026
17	AppropriationsOfRetainedEarningsAbstract Appropriations of Retained Earnings (Acct. 436)
22	AppropriationsOfRetainedEarnings TOTAL Appropriations of Retained Earnings (Acct. 436)
23	DividendsDeclaredPreferredStockAbstract Dividends Declared-Preferred Stock (Account 437)
29	DividendsDeclaredPreferredStock TOTAL Dividends Declared-Preferred Stock (Acct. 437)
30	DividendsDeclaredCommonStockAbstract Dividends Declared-Common Stock (Account 438)
30.1	DividendsDeclaredCommonStock Dividends Declared_Common Stock			1,000,000
36	DividendsDeclaredCommonStock TOTAL Dividends Declared-Common Stock (Acct. 438)			1,000,000
37	TransfersFromUnappropriatedUndistributedSubsidiaryEarnings Transfers from Acct 216.1, Unapprop. Undistrib. Subsidiary Earnings
38	UnappropriatedRetainedEarnings Balance - End of Period (Total 1,9,15,16,22,29,36,37)		39,423,791	31,967,845
39	AppropriatedRetainedEarningsAbstract APPROPRIATED RETAINED EARNINGS (Account 215)
45	AppropriatedRetainedEarnings TOTAL Appropriated Retained Earnings (Account 215)
	AppropriatedRetainedEarningsAmortizationReserveFederalAbstract APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.1)
46	AppropriatedRetainedEarningsAmortizationReserveFederal TOTAL Approp. Retained Earnings-Amort. Reserve, Federal (Acct. 215.1)
47	AppropriatedRetainedEarningsIncludingReserveAmortization TOTAL Approp. Retained Earnings (Acct. 215, 215.1) (Total 45,46)
48	RetainedEarnings TOTAL Retained Earnings (Acct. 215, 215.1, 216) (Total 38, 47) (216.1)		39,423,791	31,967,845
	UnappropriatedUndistributedSubsidiaryEarningsAbstract UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account Report only on an Annual Basis, no Quarterly)
49	UnappropriatedUndistributedSubsidiaryEarnings Balance-Beginning of Year (Debit or Credit)
50	EquityInEarningsOfSubsidiaryCompanies Equity in Earnings for Year (Credit) (Account 418.1)
51	DividendsReceived (Less) Dividends Received (Debit)
52	ChangesUnappropriatedUndistributedSubsidiaryEarningsCredits TOTAL other Changes in unappropriated undistributed subsidiary earnings for the year
53	UnappropriatedUndistributedSubsidiaryEarnings Balance-End of Year (Total lines 49 thru 52)

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENT OF CASH FLOWS
Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) Include commercial paper; and (d) Identify separately such items as investments, fixed assets, intangibles, etc. Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet. Operating Activities - Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income taxes paid. Investing Activities: Include at Other (line 31) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities assumed in the Notes to the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General Instruction 20; instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost.
Line No.	Description (See Instructions No.1 for explanation of codes) (a)	Current Year to Date Quarter/Year (b)	Previous Year to Date Quarter/Year (c)
1	NetCashFlowFromOperatingActivitiesAbstract Net Cash Flow from Operating Activities
2	NetIncomeLoss Net Income (Line 78(c) on page 117)	7,455,946	3,327,023
3	NoncashChargesCreditsToIncomeAbstract Noncash Charges (Credits) to Income:
4	DepreciationAndDepletion Depreciation and Depletion	9,586,267	9,130,690
5	NoncashAdjustmentsToCashFlowsFromOperatingActivities Amortization of (Specify) (footnote details)
5.1	NoncashAdjustmentsToCashFlowsFromOperatingActivitiesDescription Amortization of Regulatory Debits and Credits (Net)	307,187	98
8	DeferredIncomeTaxesNet Deferred Income Taxes (Net)	2,482,583	275,014
9	InvestmentTaxCreditAdjustmentsNet Investment Tax Credit Adjustment (Net)
10	NetIncreaseDecreaseInReceivablesOperatingActivities Net (Increase) Decrease in Receivables	7,841,744	2,530,954
11	NetIncreaseDecreaseInInventoryOperatingActivities Net (Increase) Decrease in Inventory	471,686	94,817
12	NetIncreaseDecreaseInAllowancesInventoryOperatingActivities Net (Increase) Decrease in Allowances Inventory
13	NetIncreaseDecreaseInPayablesAndAccruedExpensesOperatingActivities Net Increase (Decrease) in Payables and Accrued Expenses	25,569,940	2,431,508
14	NetIncreaseDecreaseInOtherRegulatoryAssetsOperatingActivities Net (Increase) Decrease in Other Regulatory Assets	22,486,223	10,571,583
15	NetIncreaseDecreaseInOtherRegulatoryLiabilitiesOperatingActivities Net Increase (Decrease) in Other Regulatory Liabilities	199,549	208,286
16	AllowanceForOtherFundsUsedDuringConstructionOperatingActivities (Less) Allowance for Other Funds Used During Construction	183,538	71
17	UndistributedEarningsFromSubsidiaryCompaniesOperatingActivities (Less) Undistributed Earnings from Subsidiary Companies
18	OtherAdjustmentsToCashFlowsFromOperatingActivities Other (provide details in footnote):
18.1	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Other (provide details in footnote):	(a) 2,427,460	582,652
22	NetCashFlowFromOperatingActivities Net Cash Provided by (Used in) Operating Activities (Total of Lines 2 thru 21)	11,177,349	7,403,324
24	CashFlowsFromInvestmentActivitiesAbstract Cash Flows from Investment Activities:
25	ConstructionAndAcquisitionOfPlantIncludingLandAbstract Construction and Acquisition of Plant (including land):
26	GrossAdditionsToUtilityPlantLessNuclearFuelInvestingActivities Gross Additions to Utility Plant (less nuclear fuel)	33,005,279	15,526,092
27	GrossAdditionsToNuclearFuelInvestingActivities Gross Additions to Nuclear Fuel
28	GrossAdditionsToCommonUtilityPlantInvestingActivities Gross Additions to Common Utility Plant
29	GrossAdditionsToNonutilityPlantInvestingActivities Gross Additions to Nonutility Plant
30	AllowanceForOtherFundsUsedDuringConstructionInvestingActivities (Less) Allowance for Other Funds Used During Construction	183,538	71
31	OtherConstructionAndAcquisitionOfPlantInvestmentActivities Other (provide details in footnote):
31.1	OtherConstructionAndAcquisitionOfPlantInvestmentActivitiesDescription Acquired Assets	33,016	140,140
34	CashOutflowsForPlant Cash Outflows for Plant (Total of lines 26 thru 33)	32,854,757	15,666,303
36	AcquisitionOfOtherNoncurrentAssets Acquisition of Other Noncurrent Assets (d)
37	ProceedsFromDisposalOfNoncurrentAssets Proceeds from Disposal of Noncurrent Assets (d)	(b) 348,038	319,655
39	InvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompanies Investments in and Advances to Assoc. and Subsidiary Companies
40	ContributionsAndAdvancesFromAssociatedAndSubsidiaryCompanies Contributions and Advances from Assoc. and Subsidiary Companies
41	DispositionOfInvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompaniesAbstract Disposition of Investments in (and Advances to)
42	DispositionOfInvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompanies Disposition of Investments in (and Advances to) Associated and Subsidiary Companies
44	PurchaseOfInvestmentSecurities Purchase of Investment Securities (a)
45	ProceedsFromSalesOfInvestmentSecurities Proceeds from Sales of Investment Securities (a)
46	LoansMadeOrPurchased Loans Made or Purchased
47	CollectionsOnLoans Collections on Loans
49	NetIncreaseDecreaseInReceivablesInvestingActivities Net (Increase) Decrease in Receivables
50	NetIncreaseDecreaseInInventoryInvestingActivities Net (Increase) Decrease in Inventory
51	NetIncreaseDecreaseInAllowancesHeldForSpeculationInvestingActivities Net (Increase) Decrease in Allowances Held for Speculation
52	NetIncreaseDecreaseInPayablesAndAccruedExpensesInvestingActivities Net Increase (Decrease) in Payables and Accrued Expenses
53	OtherAdjustmentsToCashFlowsFromInvestmentActivities Other (provide details in footnote):
53.1	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Contributions in Aid of Construction Proceeds	207,037	327,855
53.2	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription (Increase) Decrease in Other Special Deposits	113	1,919
57	CashFlowsProvidedFromUsedInInvestmentActivities Net Cash Provided by (Used in) Investing Activities (Total of lines 34 thru 55)	32,299,795	15,020,712
59	CashFlowsFromFinancingActivitiesAbstract Cash Flows from Financing Activities:
60	ProceedsFromIssuanceAbstract Proceeds from Issuance of:
61	ProceedsFromIssuanceOfLongTermDebtFinancingActivities Long-Term Debt (b)	20,000,000
62	ProceedsFromIssuanceOfPreferredStockFinancingActivities Preferred Stock
63	ProceedsFromIssuanceOfCommonStockFinancingActivities Common Stock
64	OtherAdjustmentsToCashFlowsFromFinancingActivities Other (provide details in footnote):
64.1	OtherAdjustmentsToCashFlowsFromFinancingActivitiesDescription Other (provide details in footnote):
64.2	OtherAdjustmentsToCashFlowsFromFinancingActivitiesDescription Long Term Issuances Costs		1,091
66	NetIncreaseInShortTermDebt Net Increase in Short-Term Debt (c)
67	OtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Other (provide details in footnote):
67.1	DescriptionForOtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Proceeds on Capital Leaseback	33,016	140,140
67.2	DescriptionForOtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Notes payable to Associated Companies		8,280,232
67.3	DescriptionForOtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Capital Contributions from Parent	15,000,000
70	CashProvidedByOutsideSources Cash Provided by Outside Sources (Total 61 thru 69)	35,033,016	8,419,281
72	PaymentsForRetirementAbstract Payments for Retirement of:
73	PaymentsForRetirementOfLongTermDebtFinancingActivities Long-term Debt (b)
74	PaymentsForRetirementOfPreferredStockFinancingActivities Preferred Stock
75	PaymentsForRetirementOfCommonStockFinancingActivities Common Stock
76	OtherRetirementsOfBalancesImpactingCashFlowsFromFinancingActivities Other (provide details in footnote):
76.1	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Other (provide details in footnote):
76.2	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Notes payable to Associated Companies	13,650,386
78	NetDecreaseInShortTermDebt Net Decrease in Short-Term Debt (c)
80	DividendsOnPreferredStock Dividends on Preferred Stock
81	DividendsOnCommonStock Dividends on Common Stock		1,000,000
83	CashFlowsProvidedFromUsedInFinancingActivities Net Cash Provided by (Used in) Financing Activities (Total of lines 70 thru 81)	21,382,630	7,419,281
85	NetIncreaseDecreaseInCashAndCashEquivalentsAbstract Net Increase (Decrease) in Cash and Cash Equivalents
86	NetIncreaseDecreaseInCashAndCashEquivalents Net Increase (Decrease) in Cash and Cash Equivalents (Total of line 22, 57 and 83)	260,184	198,107
88	CashAndCashEquivalents Cash and Cash Equivalents at Beginning of Period	98,529	296,637
90	CashAndCashEquivalents Cash and Cash Equivalents at End of Period	358,713	98,529

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: OtherAdjustmentsToCashFlowsFromOperatingActivities


	2022 Cash Flow Incr / (Decr		2021 Cash Flow Incr / (Decr)
Utility Plant, Net	$	(2,317,857)	$	(1,031,202)
Margin Deposits	8,778		(2,060)
Mark-to-Market of Risk Management Contracts	(6,201)		1
Prepayments	(233,387)		149,576
Accrued Utility Revenues, Net	519,246		373,062
Unamortized Debt Expense	1,091
Other Deferred Debits, Net	(1,113,605)		(55,223)
Accumulated Provisions - Misc	120,065		—
Current and Accrued Liabilities, Net	405,686		(220,417)
Other Deferred Credits, Net	188,724		1,368,915
Total	$	(2,427,460)	$	582,652

(b) Concept: ProceedsFromDisposalOfNoncurrentAssets


	2022 Cash Flow Incr / (Decr)		2021 Cash Flow Incr / (Decr)
Sale of Meters	$	266,588	$	294,655
Sale of Transformers	81,450		25,000
Total	$	348,038	$	319,655

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

NOTES TO FINANCIAL STATEMENTS

Use the space below for important notes regarding the Balance Sheet, Statement of Income for the year, Statement of Retained Earnings for the year, and Statement of Cash Flows, or any account thereof. Classify the notes according to each basic statement, providing a subheading for each statement except where a note is applicable to more than one statement.
Furnish particulars (details) as to any significant contingent assets or liabilities existing at end of year, including a brief explanation of any action initiated by the Internal Revenue Service involving possible assessment of additional income taxes of material amount, or of a claim for refund of income taxes of a material amount initiated by the utility. Give also a brief explanation of any dividends in arrears on cumulative preferred stock.
For Account 116, Utility Plant Adjustments, explain the origin of such amount, debits and credits during the year, and plan of disposition contemplated, giving references to Cormmission orders or other authorizations respecting classification of amounts as plant adjustments and requirements as to disposition thereof.
Where Accounts 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an explanation, providing the rate treatment given these items. See General Instruction 17 of the Uniform System of Accounts.
Give a concise explanation of any retained earnings restrictions and state the amount of retained earnings affected by such restrictions.
If the notes to financial statements relating to the respondent company appearing in the annual report to the stockholders are applicable and furnish the data required by instructions above and on pages 114-121, such notes may be included herein.
For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading. Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted.
For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts; capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a significant change since year end may not have occurred.
Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable and furnish the data required by the above instructions, such notes may be included herein.

INDEX OF NOTES TO FINANCIAL STATEMENTS

Glossary of Terms for Notes

1.Organization and Summary of Significant Accounting Policies

2.New Accounting Standards

3.Rate Matters

4.Effects of Regulation

5.Commitments, Guarantees and Contingencies

6.Benefit Plans

7.Derivatives and Hedging

8.Fair Value Measurements

9.Income Taxes

10.Leases

11.Financing Activities

12.Related Party Transactions

13.Property, Plant and Equipment

14.Revenue from Contracts with Customers

GLOSSARY OF TERMS FOR NOTES

When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below.


Term						Meaning

AEP						American Electric Power Company, Inc., an investor-owned electric public utility holding company which includes American Electric Power Company, Inc. (Parent) and majority owned subsidiaries and affiliates.
AEP Credit						AEP Credit, Inc., a subsidiary of AEP which securitizes accounts receivable and accrued utility revenues for affiliated electric utility companies.
AEP System						American Electric Power System, an electric system, owned and operated by AEP subsidiaries.
AEPSC						American Electric Power Service Corporation, an AEP service subsidiary providing management and professional services to AEP and its subsidiaries.
AEPTCo						AEP Transmission Company, LLC, a subsidiary of AEP Transmission Holdco, is an intermediate holding company that owns seven wholly-owned transmission companies.
AFUDC						Allowance for Funds Used During Construction.
APCo						Appalachian Power Company, an AEP electric utility subsidiary.

ARO						Asset Retirement Obligation.
COVID-19						Coronavirus 2019, a highly infectious respiratory disease. In March 2020, the World Health Organization declared COVID-19 a worldwide pandemic.
EIS						Energy Insurance Services, Inc., a nonaffiliated captive insurance company.
Excess ADIT						Excess accumulated deferred income taxes.
FASB						Financial Accounting Standards Board.
Federal EPA						United States Environmental Protection Agency.
FERC						Federal Energy Regulatory Commission.
FTR						Financial Transmission Right, a financial instrument that entitles the holder to receive compensation for certain congestion-related transmission charges that arise when the power grid is congested resulting in differences in locational prices.
I&M						Indiana Michigan Power Company, an AEP electric utility subsidiary.
IRA						On August 16, 2022, President Biden signed into law legislation commonly referred to as the “Inflation Reduction Act” (IRA).
IRS						Internal Revenue Service.
ITC						Investment Tax Credit.
KGPCo						Kingsport Power Company, an AEP electric utility subsidiary.
KPCo						Kentucky Power Company, an AEP electric utility subsidiary.
MTM						Mark-to-Market.
OATT						Open Access Transmission Tariff.
OPCo						Ohio Power Company, an AEP electric utility subsidiary.
OPEB						Other Postretirement Benefits.
OTC						Over the counter.
Parent						American Electric Power Company, Inc., the equity owner of AEP subsidiaries within the AEP consolidation.
PJM						Pennsylvania – New Jersey – Maryland regional transmission organization.
PTC						Production Tax Credit.
Risk Management Contracts						Trading and nontrading derivatives, including those derivatives designated as cash flow and fair value hedges.
RTO						Regional Transmission Organization, responsible for moving electricity over large interstate areas.
RPM						Reliability Pricing Model.


Term						Meaning

Tax Reform						On December 22, 2017, President Trump signed into law legislation referred to as the “Tax Cuts and Jobs Act” (the TCJA). The TCJA includes significant changes to the Internal Revenue Code of 1986, including a reduction in the corporate federal income tax rate from 35% to 21% effective January 1, 2018.
TPUC						Tennessee Public Utility Commission, formerly known as Tennessee Regulatory Authority (TRA).
Utility Money Pool						Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain utility subsidiaries.
WPCo						Wheeling Power Company, an AEP electric utility subsidiary.

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

KGPCo is a wholly-owned subsidiary of AEP. KGPCo is engaged in the purchase of electric power and the subsequent sale, transmission and distribution of that power to approximately 49,000 retail customers in its service territory in Kingsport, Tennessee and the surrounding area. As a member of the AEP System, KGPCo’s facilities are operated in conjunction with the facilities of certain other AEP affiliated utilities as an integrated utility system. All of the power KGPCo sells and distributes at retail is purchased from APCo, an affiliated AEP System company.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Rates and Service Regulation

KGPCo’s wholesale rates are regulated by the FERC and its retail rates are regulated by the TPUC. The FERC also regulates KGPCo’s affiliated transactions, including AEPSC intercompany service billings which are generally at cost, under the 2005 Public Utility Holding Company Act and the Federal Power Act. The FERC also has jurisdiction over the issuances and acquisitions of securities, the acquisition or sale of certain utility assets and mergers with another electric utility or holding company. The TPUC also regulates certain intercompany transactions under its affiliate statutes.

KGPCo purchases electricity at wholesale from APCo. The FERC regulates KGPCo’s cost-based wholesale power transactions with APCo. The TPUC regulates KGPCo’s bundled transmission and distribution rates on a cost basis.

KGPCo’s purchased power agreement with APCo includes a component for the recovery of transmission costs under the FERC’s OATT. The transmission cost component of purchased power is cost-based and regulated by the TPUC.

In addition, the FERC regulates the Transmission Agreement, which allocates shared system costs and revenues to the utility subsidiaries that are parties to the agreement.

Both the FERC and the TPUC are permitted to review and audit the books and records of any company within a public utility holding company system.

Basis of Accounting

KGPCo’s accounting is subject to the requirements of the TPUC and the FERC. The financial statements have been prepared in accordance with the Uniform System of Accounts prescribed by the FERC. The principal differences from GAAP include:


·			The requirement to report deferred tax assets and liabilities separately rather than as a single amount.
·			The classification of accrued taxes as a single amount rather than as assets and liabilities.
·			The classification of accrued non-ARO asset removal costs as accumulated depreciation rather than regulatory liabilities.
·			The classification of finance lease payments as operating activities instead of financing activities.
·			The classification of regulatory assets and liabilities related to the accounting guidance for “Accounting for Income Taxes” as separate assets and liabilities rather than as a single amount.
·			The presentation of finance leased assets and their associated accumulated amortization as a single amount instead of as separate amounts.
·			The classification of factored accounts receivable expense as a nonoperating expense instead of as an operating expense.
·			The classification of certain nonoperating revenues as miscellaneous nonoperating income instead of as operating revenue.
·			The classification of certain nonoperating expenses as miscellaneous nonoperating expense instead of as operating expense.
·			The separate classification of income tax expense for operating and nonoperating activities instead of as a single income tax expense.
·			The classification of certain other assets and liabilities as current instead of noncurrent.
·			The classification of certain other assets and liabilities as noncurrent instead of current.
·			The classification of debt issuance costs as noncurrent assets instead of noncurrent liabilities.
·			The classification of rents receivable as Rents Receivable instead of Customer Accounts Receivable.
·			The classification of Non-Service Cost Components of Net Periodic Benefit Cost as operating expense instead of other income (expense).
·			The classification of operating lease assets as Utility Plant rather than as a noncurrent asset.
·			The presentation of obligations under finance and operating leases as a single amount in Obligations Under Capital Leases rather than as separate items.
·			The classification of certain expenses in operating income rather than operating expenses.
·			The classification of interest on regulated finance leases as operating expense instead of Other Income (Expense).
·			The classification of cloud computing implementation costs as Utility Plant rather than as a noncurrent asset.

Accounting for the Effects of Cost-Based Regulation

As a rate-regulated electric public utility company, KGPCo’s financial statements reflect the actions of regulators that result in the recognition of certain revenues and expenses in different time periods than enterprises that are not rate-regulated. In accordance with accounting guidance for “Regulated Operations,” KGPCo records regulatory assets (deferred expenses) and regulatory liabilities (deferred revenue reductions or refunds) to reflect the economic effects of regulation in the same accounting period by matching expenses with their recovery through regulated revenues and by matching income with its passage to customers in cost-based regulated rates.

Use of Estimates

The preparation of these financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include, but are not limited to, inventory valuation, allowance for doubtful accounts, long-lived asset impairment, unbilled electricity revenue, the effects of regulation, long-lived asset recovery, storm costs, the effects of contingencies and certain assumptions made in accounting for pension and postretirement benefits. The estimates and assumptions used are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could ultimately differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents on the statements of cash flows include Cash, Working Fund and Temporary Cash Investments on the balance sheets with original maturities of three months or less.

Supplementary Information


		2022			2021
For the Years Ended December 31,		(in thousands)
Cash was Paid (Received) for:
	Interest (Net of Capitalized Amounts)	$	2,323		$	2,333
	Income Taxes (Net of Refunds)			(8,446)			1,566
Noncash Acquisitions Under Finance Leases				81			207
As of December 31,
Construction Expenditures Included in Current and Accrued Liabilities				3,840			1,680

AEP System Tax Allocation

KGPCo joins in the filing of a consolidated federal income tax return with its affiliates in the AEP System. Historically, the allocation of the AEP System’s current consolidated federal income tax to the AEP System companies allocated the benefit of current tax loss of the parent company (Parent Company Loss Benefit) to the AEP System subsidiaries through a reduction of current tax expense. In the first quarter of 2022, AEP and subsidiaries changed accounting for the Parent Company Loss Benefit from a reduction of current tax expense to an allocation through equity. The impact of this change was immaterial to KGPCo's financial statements. The consolidated net operating losses of the AEP System is allocated to each company in the consolidated group with taxable loss. With the exception of the allocation of the consolidated AEP System net operating losses, the loss of the Parent and tax credits, the method of allocation reflects a separate return result for each company in the consolidated group.

Inventory

Materials and supplies inventories are carried at average cost.

Accounts Receivable

Customer accounts receivable primarily include receivables from retail energy customers. Revenue is recognized over time as the performance obligations of delivering energy to customers are satisfied. To the extent that deliveries have occurred but a bill has not been issued, KGPCo accrues and recognizes, as Accrued Unbilled Revenues on the balance sheets, an estimate of the revenues for energy delivered since the last billing.

AEP Credit factors accounts receivable on a daily basis, excluding receivables from risk management activities, for KGPCo. See “Securitized Accounts Receivables – AEP Credit” section of Note 11 for additional information.

Allowance for Uncollectible Accounts

Generally, AEP Credit records bad debt expense related to receivables purchased from KGPCo under a sale of receivables agreement. For other accounts receivable, bad debt expense is recorded based upon a 12-month rolling average of bad debt write-offs in proportion to gross accounts receivable, unless specifically identified. In addition to these processes, management contemplates available current information, as well as any reasonable and supportable forecast information, to determine if allowances for uncollectible accounts should be further adjusted in accordance with the accounting guidance for “Credit Losses”. Management’s assessments contemplate expected losses over the life of the accounts receivable.

Concentrations of Credit Risk and Significant Customers

One of KGPCo’s industrial customers who manufactures chemical products account for the following percentages of total operating revenues for the years ended December 31 and accounts receivable as of December 31:


Percentage of Operating Revenues	2022		2021
Customer Who Manufactures Chemical Products	19	%	13	%

Percentage of Accounts Receivable	2022		2021
Customer Who Manufactures Chemical Products	14	%	12	%

Management monitors credit levels and the financial condition of KGPCo’s customers on a continuing basis to minimize credit risk. Management believes adequate provision for credit loss has been made in the accompanying financial statements.

Property, Plant and Equipment

Electric utility property, plant and equipment are stated at original cost. Additions, major replacements and betterments are added to the plant accounts. Under the group composite method of depreciation, continuous interim routine replacements of items such as poles, transformers, etc. result in original cost retirements, less salvage, being charged to accumulated depreciation. The group composite method of depreciation assumes that on average, asset components are retired at the end of their useful lives and thus there is no gain or loss. The equipment in each primary electric plant account is identified as a separate group. The depreciation rates that are established take into account the past history of interim capital replacements and the amount of removal cost incurred and salvage received. These rates and the related lives are subject to periodic review. Removal costs

accrued are charged to accumulated depreciation. The costs of labor, materials and overhead incurred to operate and maintain plant and equipment are included in operating expenses.

Long-lived assets are required to be tested for impairment when it is determined that the carrying value of the assets may no longer be recoverable or when the assets meet the held-for-sale criteria under the accounting guidance for “Impairment or Disposal of Long-Lived Assets.” When it becomes probable that an asset in service or an asset under construction will be abandoned and regulatory cost recovery has been disallowed or is not probable, the cost of that asset shall be written down to its then current estimated fair value, with the change charged to expense, and the asset is removed from plant-in-service or construction work in progress.

The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, as opposed to a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and are used as the basis for the measurement, if available. In the absence of quoted prices for identical or similar assets in active markets, fair value is estimated using various internal and external valuation methods including cash flow analysis and appraisals.

Allowance for Funds Used During Construction

AFUDC represents the estimated cost of borrowed and equity funds used to finance construction projects that is capitalized and recovered through depreciation over the service life of a regulated electric utility facility.

Valuation of Nonderivative Financial Instruments

The book values of Cash, Special Deposits, Working Fund, Notes Receivable from Associated Companies, Notes Payable to Associated Companies, accounts receivable and accounts payable approximate fair value because of the short-term maturity of these instruments.

Fair Value Measurements of Assets and Liabilities

The accounting guidance for “Fair Value Measurements and Disclosures” establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. When quoted market prices are not available, pricing may be completed using comparable securities, dealer values, operating data and general market conditions to determine fair value. Valuation models utilize various inputs such as commodity, interest rate and, to a lesser degree, volatility and credit that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, market corroborated inputs (i.e. inputs derived principally from, or correlated to, observable market data) and other observable inputs for the asset or liability.

For commercial activities, exchange traded derivatives, namely futures contracts, are generally fair valued based on unadjusted quoted prices in active markets and are classified as Level 1. Level 2 inputs primarily consist of OTC broker quotes in moderately active or less active markets, as well as exchange traded derivatives where there is insufficient market liquidity to warrant inclusion in Level 1. Management verifies price curves using these broker quotes and classifies these fair values within Level 2 when substantially all of the fair value can be corroborated. Management typically obtains multiple broker quotes, which are nonbinding in nature but are based on recent trades in the marketplace. When multiple broker quotes are obtained, the quoted bid and ask prices are averaged. In certain circumstances, a broker quote may be discarded if it is a clear outlier. Management uses a historical correlation analysis between the broker quoted location and the illiquid locations. If the points are highly correlated, these locations are included within Level 2 as well. Certain OTC and bilaterally executed derivative instruments are executed in less active markets with a lower availability of pricing information. Illiquid transactions, complex structured transactions, FTRs and counterparty credit risk may require nonmarket based inputs. Some of these inputs may be internally developed or extrapolated and utilized to estimate fair value. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized as Level 3. The main driver of contracts being classified as Level 3 is the inability to substantiate energy price curves in the market. A portion of the Level 3 instruments have been economically hedged which limits potential earnings volatility.

AEP utilizes its trustee’s external pricing service to estimate the fair value of the underlying investments held in the benefit plan trusts. AEP’s investment managers review and validate the prices utilized by the trustee to determine fair value. AEP’s management performs its own valuation testing to verify the fair values of the securities. AEP receives audit reports of the trustee’s operating controls and valuation processes.

Assets in the benefits trusts are classified using the following methods. Equities are classified as Level 1 holdings if they are actively traded on exchanges. Items classified as Level 1 are investments in money market funds, fixed income and equity mutual funds and domestic equity securities. They are valued based on observable inputs, primarily unadjusted quoted prices in active markets for identical assets. Items classified as Level 2 are primarily investments in individual fixed income securities. Fixed income securities generally do not trade on exchanges and do not have an official closing price but their valuation inputs are based on observable market data. Pricing vendors calculate bond valuations using financial models and matrices. The models use observable inputs including yields on benchmark securities, quotes by securities brokers, rating agency actions, discounts or premiums on securities compared to par prices, changes in yields for U.S. Treasury securities, corporate actions by bond issuers, prepayment schedules and histories, economic events and, for certain securities, adjustments to yields to reflect changes in the rate of inflation. Other securities with model-derived valuation inputs that are observable are also classified as Level 2 investments. Investments with unobservable valuation inputs are classified as Level 3 investments. Investments classified as Other are valued using Net Asset Value as a practical expedient. Items classified as Other are primarily cash equivalent funds, common collective trusts, commingled funds, structured products, real estate, infrastructure and alternative credit investments. These investments do not have a readily determinable fair value or they contain redemption restrictions which may include the right to suspend redemptions under certain circumstances. Redemption restrictions may also prevent certain investments from being redeemed at the reporting date for the underlying value.

Revenue Recognition

Regulatory Accounting

KGPCo’s financial statements reflect the actions of regulators that can result in the recognition of revenues and expenses in different time periods than enterprises that are not rate-regulated. Regulatory assets (deferred expenses or alternative revenues recognized in accordance with the guidance for “Regulated Operations”) and regulatory liabilities (deferred revenue reductions or refunds) are recorded to reflect the economic effects of regulation in the same accounting period by matching expenses with their recovery through regulated revenues and by matching revenue with its passage to customers in cost-based regulated rates.

When regulatory assets are probable of recovery through regulated rates, KGPCo records them as assets on its balance sheets. KGPCo tests for probability of recovery at each balance sheet date or whenever new events occur. Examples of new events include the issuance of a regulatory commission order or passage of new legislation. If it is determined that recovery of a regulatory asset is no longer probable, KGPCo derecognizes that regulatory asset as a charge against income.

Electricity Supply and Delivery Activities

KGPCo recognizes retail revenues on the statements of income as the performance obligations of delivering energy to customers are satisfied. Recognized revenues include both billed and unbilled amounts. In general, expenses are recorded when purchased electricity is received and when expenses are incurred. Changes in the fuel component of affiliated purchased power are expensed as incurred. The fuel rate billed to the customer is on a two-month lag, as permitted by the TPUC.

Maintenance

Maintenance costs are expensed as incurred. If it becomes probable that KGPCo will recover specifically-incurred costs through future rates, a regulatory asset is established to match the expensing of those maintenance costs with their recovery in cost-based regulated revenues.

Income Taxes

KGPCo uses the liability method of accounting for income taxes. Under the liability method, deferred income taxes are provided for all temporary differences between the book and tax basis of assets and liabilities which will result in a future tax consequence. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled.

When the flow-through method of accounting for temporary differences is reflected in regulated revenues (that is, when deferred taxes are not included in the cost of service for determining regulated rates for electricity), deferred income taxes are recorded and related regulatory assets and liabilities are established to match the regulated revenues and tax expense.

KGPCo accounts for uncertain tax positions in accordance with the accounting guidance for “Income Taxes.” KGPCo classifies interest expense or income related to uncertain tax positions as interest expense or income as appropriate and classifies penalties as Penalties on the statements of income.

Excise Taxes

As an agent for some state and local governments, KGPCo collects from customers certain excise taxes levied by those state or local governments on customers. KGPCo does not recognize these taxes as revenue or expense.

Pension and OPEB Plans

KGPCo participates in an AEP sponsored qualified pension plan. Substantially all of KGPCo’s employees are covered by the qualified plan. KGPCo also participates in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees. KGPCo is allocated a proportionate share of benefit costs and accounts for its participation in these plans as multiple-employer plans. See Note 6 - Benefit Plans for additional information including significant accounting policies associated with the plans.

Investments Held in Trust for Future Liabilities

AEP has several trust funds with significant investments intended to provide for future payments of pension and OPEB benefits. All of the trust funds’ investments are diversified and managed in compliance with all laws and regulations. The investment strategy for the trust funds is to use a diversified portfolio of investments to achieve an acceptable rate of return while managing the investment risk of the assets relative to the associated liabilities. To minimize investment risk, the trust funds are broadly diversified among classes of assets, investment strategies and investment managers. Management regularly reviews the actual asset allocations and periodically rebalances the investments to targeted allocations when appropriate. Investment policies and guidelines allow investment managers in approved strategies to use financial derivatives to obtain or manage market exposures and to hedge assets and liabilities. The investments are reported at fair value under the “Fair Value Measurements and Disclosures” accounting guidance.

Benefit Plans

All benefit plan assets are invested in accordance with each plan’s investment policy. The investment policy outlines the investment objectives, strategies and target asset allocations by plan.

The investment philosophies for AEP’s benefit plans support the allocation of assets to minimize risks and optimize net returns. Strategies used include:

•Maintaining a long-term investment horizon.

•Diversifying assets to help control volatility of returns at acceptable levels.

•Managing fees, transaction costs and tax liabilities to maximize investment earnings.

•Using active management of investments where appropriate risk/return opportunities exist.

•Keeping portfolio structure style-neutral to limit volatility compared to applicable benchmarks.

•Using alternative asset classes such as real estate and private equity to maximize return and provide additional portfolio diversification.

The objective of the investment policy for the pension fund is to maintain the funded status of the plan while providing for growth in the plan assets to offset the growth in the plan liabilities. The current target asset allocations are as follows:


Pension Plan Assets	Target
Equity	30	%
Fixed Income	54	%
Other Investments	15	%
Cash and Cash Equivalents	1	%

OPEB Plans Assets	Target
Equity	59	%
Fixed Income	40	%
Cash and Cash Equivalents	1	%

The investment policy for each benefit plan contains various investment limitations. The investment policies establish concentration limits for securities and prohibit the purchase of securities issued by AEP (with the exception of proportionate and immaterial holdings of AEP securities in passive index strategies or certain commingled funds). However, the investment policies do not preclude the benefit trust funds from receiving contributions in the form of AEP securities, provided that the AEP securities acquired by each plan may not exceed the limitations imposed by law.

For equity investments, the concentration limits are as follows:

•No security in excess of 5% of all equities.

•Cash equivalents must be less than 10% of an investment manager’s equity portfolio.

•No individual stock may be more than 10% and 7% for pension and OPEB investments, respectively, of each manager’s equity portfolio.

•No securities may be bought or sold on margin or other use of leverage.

For fixed income investments, each investment manager’s portfolio is compared to investment grade, diversified long and intermediate benchmark indices.

A portion of the pension assets is invested in real estate funds to provide diversification, add return and hedge against inflation. Real estate properties are illiquid, difficult to value and not actively traded. The pension plan uses external real estate investment managers to invest in commingled funds that hold real estate properties. To mitigate investment risk in the real estate portfolio, commingled real estate funds are used to ensure that holdings are diversified by region, property type and risk classification. Real estate holdings include core, value-added and opportunistic classifications.

A portion of the pension assets is invested in private equity. Private equity investments add return and provide diversification and typically require a long-term time horizon to evaluate investment performance. Private equity is classified as an alternative investment because it is illiquid, difficult to value and not actively traded. The pension plan uses limited partnerships to invest across the private equity investment spectrum. The private equity holdings are with multiple general partners who help monitor the investments and provide investment selection expertise. The holdings are currently comprised of venture capital, buyout and hybrid debt and equity investments.

AEP participates in a securities lending program with BNY Mellon to provide incremental income on idle assets and to provide income to offset custody fees and other administrative expenses. AEP lends securities to borrowers approved by BNY Mellon in exchange for collateral. All loans are collateralized by at least 102% of the loaned asset’s market value and the collateral is invested. The difference between the rebate owed to the borrower and the collateral rate of return determines the earnings on the loaned security. The securities lending program’s objective is to provide modest incremental income with a limited increase in risk. As of December 31, 2022 and 2021, the fair value of securities on loan as part of the program was $83 million and $136.7 million, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned as of December 31, 2022 and 2021.

Trust owned life insurance (TOLI) underwritten by The Prudential Insurance Company is held in the OPEB plan trusts. The strategy for holding life insurance contracts in the taxable Voluntary Employees’ Beneficiary Association trust is to minimize taxes paid on the asset growth in the trust. Earnings on plan assets are tax-deferred within the TOLI contract and can be tax-free if held until claims are paid. Life insurance proceeds remain in the trust and are used to fund future retiree medical benefit liabilities. With consideration to other investments held in the trust, the cash value of the TOLI contracts is invested in two diversified funds. A portion is invested in a commingled fund with underlying investments in stocks that are actively traded on major international equity exchanges. The other portion of the TOLI cash value is invested in a diversified, commingled fixed income fund with underlying investments in government bonds, corporate bonds and asset-backed securities.

Cash and cash equivalents are held in each trust to provide liquidity and meet short-term cash needs. Cash equivalent funds are used to provide diversification and preserve principal. The underlying holdings in the cash funds are investment grade money market instruments including commercial paper, certificates of deposit, treasury bills and other types of investment grade short-term debt securities. The cash funds are valued each business day and provide daily liquidity.

Subsequent Events

Management has evaluated the impact of events occurring after December 31, 2022 through March 24, 2023, the date that KGPCo’s 2022 annual report was available to be issued, and has updated such evaluation for disclosure purposes through April 12, 2023. These financial statements include all necessary adjustments and disclosures resulting from these evaluations.

2. NEW ACCOUNTING STANDARDS

During FASB’s standard-setting process and upon issuance of final standards, management reviews the new accounting literature to determine its relevance, if any, to KGPCo’s business. There are no new standards expected to have a material impact on KGPCo’s financial statements.

3. RATE MATTERS

KGPCo is involved in rate and regulatory proceedings at the FERC and the TPUC. Rate matters can have a material impact on net income, cash flows and possibly financial condition. KGPCo’s recent significant rate orders and pending rate filings are addressed in this note.

2021 Tennessee Base Rate Case

In November 2021, KGPCo filed a request with the TPUC supporting a net annual revenue increase of $6.9 million based upon a return on equity of 10.2%. The proposed annual increase consisted of a $14.4 million increase in base rates, partially offset by $7.5 million of rider rates being moved into base rates. The proposed net annual increase included recovery of distribution investments made since the last base rate case, the impacts from loss of load and the inclusion of net operating loss carryforwards. In August 2022, the TPUC approved a joint stipulation and settlement agreement that included a net annual revenue increase of $5.8 million, based upon a 9.5% return on equity, effective August 8, 2022. This increase includes actual Targeted Reliability Plan (TRP) plant additions through June 30, 2021 and forecasted TRP plant additions through June 30, 2022. Effective August 2022, KGPCo will recover all TRP and major storm operation and maintenance expenses through a rider instead of a combination of base rates and a rider. In addition, rate case expenses related to the base case and COVID-19 cost deferrals will be recovered through a rider over a 5-year period effective August 2022, subject to true-up. The approved joint stipulation and settlement agreement also included a reduction to KGPCo’s excess accumulated deferred federal income tax liability related to KGPCo’s distribution operations’ net operating loss when calculated on a stand-alone tax basis. This reduction resulted in a $2.4 million net earnings increase that KGPCo recognized in August 2022. In October 2022, the TPUC issued an order confirming its August 2022 verbal approval.

4. EFFECTS OF REGULATION

Regulatory assets and liabilities are comprised of the following items:


			December 31,				Remaining
			2022		2021		Recovery Period
			(in thousands)
Regulatory Assets:

Regulatory assets pending final regulatory approval:

	Regulatory Assets Currently Not Earning a Return
		Income Tax Assets	$	833	$	—
		COVID-19	—		106
		Rate Case Expenses	—		371
Total Regulatory Assets Pending Final Regulatory Approval			833		477

Regulatory assets approved for recovery:

	Regulatory Assets Currently Not Earning a Return
		Fuel and Purchased Power Adjustment Rider	36,613		12,076		2 years
		Income Tax Assets	10,681		8,844		(a)
		Pension and OPEB Funded Status	4,755		2,417		12 years
		Targeted Reliability Plan and Major Storm Rider Costs	3,682		5,849		2 years
		Rate Case Expenses	761		—		5 years
		Postemployment Benefits	231		257		3 years

		Other Regulatory Assets Approved for Recovery	225		393		various
Total Regulatory Assets Approved for Recovery			56,948		29,836





Total FERC Account 182.3 Regulatory Assets			$	57,781	$	30,313


			December 31,				Remaining
			2022		2021		Refund Period
			(in thousands)
Regulatory Liabilities:

Regulatory liabilities approved for payment:

	Regulatory Liabilities Currently Paying a Return
		Income Tax Liabilities (b)	$	7,776	$	11,051	(a)(c)
Total Regulatory Liabilities Currently Paying a Return			7,776		11,051

	Regulatory Liabilities Currently Not Paying a Return
		PJM Transmission Enhancement Refund	656		846		3 years
		Other Regulatory Liabilities Approved for Payment	178		190		various
Total Regulatory Liabilities Currently Not Paying a Return			834		1,036





Total FERC Account 254 Regulatory Liabilities			$	8,610	$	12,087

(a)Recovered over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets.

(b)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(c)Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $112 thousand for the year ended December 31, 2022 and is to be refunded over 6 years.

5. COMMITMENTS, GUARANTEES AND CONTINGENCIES

KGPCo is subject to certain claims and legal actions arising in its ordinary course of business. In addition, KGPCo’s business activities are subject to extensive governmental regulation related to public health and the environment. The ultimate outcome of such pending or potential litigation against KGPCo cannot be predicted. Management accrues contingent liabilities only when management concludes that it is both probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. When management determines that it is not probable, but rather reasonably possible that a liability has been incurred at the date of the financial statements, management discloses such contingencies and the possible loss or range of loss if such estimate can be made. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the maximum possible loss exposure. Circumstances change over time and actual results may vary significantly from estimates.

For current proceedings not specifically discussed below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the financial statements.

COMMITMENTS

KGPCo has construction commitments to support its operations and investments. In managing the overall construction program and in the normal course of business, KGPCo contractually commits to third-party construction vendors for certain material purchases and other construction services. KGPCo also purchases materials, supplies, services and property, plant and equipment under contract as part of its normal course of business. Certain supply contracts contain penalty provisions for early termination.

In accordance with the accounting guidance for “Commitments”, KGPCo had no actual contractual commitments as of December 31, 2022.

GUARANTEES

Liabilities for guarantees are recorded in accordance with the accounting guidance for “Guarantees.” There is no collateral held in relation to any guarantees. In the event any guarantee is drawn, there is no recourse to third-parties unless specified below.

Indemnifications and Other Guarantees

Contracts

KGPCo enters into certain types of contracts which require indemnifications. Typically these contracts include, but are not limited to, sale agreements, lease agreements, purchase agreements and financing agreements. Generally, these agreements may include, but are not limited to, indemnifications around certain tax, contractual and environmental matters. With respect to sale agreements, exposure generally does not exceed the sale price. As of December 31, 2022, there were no material liabilities recorded for any indemnifications.

Lease Obligations

KGPCo leases certain equipment under master lease agreements. See “Master Lease Agreements” section of Note 10 for additional information.

CONTINGENCIES

Insurance and Potential Losses

KGPCo maintains insurance coverage normal and customary for an electric utility, subject to various deductibles. KGPCo also maintains property and casualty insurance that may cover certain physical damage or third-party injuries caused by cyber security incidents. Insurance coverage includes all risks of physical loss or damage to assets, subject to insurance policy conditions and exclusions. Covered property generally includes substations, facilities and inventories. Excluded property generally includes transmission and distribution lines, poles and towers. The insurance programs also generally provide coverage against loss arising from certain claims made by third parties and are in excess of KGPCo’s retentions. Coverage is generally provided by a combination of the protected cell of EIS and/or various industry mutual and/or commercial insurance carriers.

Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities, including, but not limited to, liabilities relating to a cyber security incident. Future losses or liabilities, if they occur, which are not completely insured, unless recovered from customers, could reduce future net income and cash flows and impact financial condition.

The Comprehensive Environmental Response Compensation and Liability Act (Superfund) and State Remediation

KGPCo’s transmission and distribution facilities have used asbestos, polychlorinated biphenyls and other hazardous and nonhazardous materials. KGPCo currently incurs costs to dispose of these substances safely.

Superfund addresses clean-up of hazardous substances that have been released to the environment. The Federal EPA administers the clean-up programs. Several states have enacted similar laws. Superfund does not recognize compliance as a defense, but imposes strict liability on parties who fall within its broad statutory categories. As of December 31, 2022, management’s estimates do not anticipate material cleanup costs.

Claims Challenging Transition of American Electric Power System Retirement Plan to Cash Balance Formula

Four participants in The American Electric Power System Retirement Plan (the Plan) filed a class action complaint in December 2021 in the U.S. District Court for the Southern District of Ohio against AEPSC and the Plan. When the Plan’s benefit formula was changed in the year 2000, AEP provided a special provision for employees hired before January 1, 2001, allowing them to continue benefit accruals under the then benefit formula for a full 10 years alongside of the new cash balance benefit formula then being implemented. Employees who were hired on or after January 1, 2001 accrued benefits only under the new cash balance benefit formula. The Plaintiffs assert a number of claims on behalf of themselves and the purported class, including that: (a) the Plan violates the requirements under the Employee Retirement Income Security Act (ERISA) intended to

preclude back-loading the accrual of benefits to the end of a participant’s career, (b) the Plan violates the age discrimination prohibitions of ERISA and the Age Discrimination in Employment Act and (c) AEP failed to provide required notice regarding the changes to the Plan. Among other relief, the Complaint seeks reformation of the Plan to provide additional benefits and the recovery of plan benefits for former employees under such reformed plan. The Plaintiffs previously had submitted claims for additional plan benefits to AEP, which were denied. On February 15, 2022, AEPSC and the Plan filed a motion to dismiss the complaint for failure to state a claim. On August 16, 2022, the district court granted the motion to dismiss the complaint without prejudice. The plaintiffs filed a motion for leave to file an amended complaint, which the Court denied on December 1, 2022. The plaintiffs did not file an appeal by the deadline of January 3, 2023.

6. BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Fair Value Measurements of Assets and Liabilities” and “Investments Held in Trust for Future Liabilities” sections of Note 1.

KGPCo participates in an AEP sponsored qualified pension plan which covers substantially all of KGPCo’s employees. KGPCo also participates in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

KGPCo recognizes the funded status associated with defined benefit pension and OPEB plans on its balance sheets. Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance. KGPCo recognizes an asset for a plan’s overfunded status or a liability for a plan’s underfunded status. KGPCo records a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that for ratemaking purposes are deferred for future recovery. The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in a regulatory asset and deferred gains result in a regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions used in the measurement of benefit obligations are shown in the following table:


	Pension Plan						OPEB
	December 31,
Assumptions	2022			2021			2022		2021
Discount Rate	5.50	%		2.90	%		5.50	%	2.90	%
Interest Crediting Rate	4.25	%		4.00	%		NA		NA
Rate of Compensation Increase	5.00	%	(a)	5.15	%	(a)	NA		NA

(a)Rates are for base pay only. In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

NA Not applicable.

A duration-based method is used to determine the discount rate for the plans. A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability. The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.

For 2022, the rate of compensation increase assumed varies with the age of the employee, ranging from 3% per year to 11.5% per year, with the average increase shown in the table above.

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions used in the measurement of benefit costs are shown in the following table:


	Pension Plan						OPEB
	Years Ended December 31,
Assumptions	2022			2021			2022		2021
Discount Rate	2.90	%		2.50	%		2.90	%	2.55	%
Interest Crediting Rate	4.00	%		4.00	%		NA		NA
Expected Return on Plan Assets	5.25	%		4.75	%		5.50	%	4.75	%
Rate of Compensation Increase	5.00	%	(a)	5.15	%	(a)	NA		NA

(a)Rates are for base pay only. In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

NA Not applicable.

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation, third party forecasts and current prospects for economic growth.

The health care trend rate assumptions used for OPEB plans measurement purposes are shown below:


	December 31,
Health Care Trend Rates	2022		2021
Initial	7.50	%	6.25	%
Ultimate	4.50	%	4.50	%
Year Ultimate Reached	2029		2029

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets. The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits. The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment. The plans are monitored to control security diversification and ensure compliance with the investment policy. As of December 31, 2022, the assets were invested in compliance with all investment limits. See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status

For the year ended December 31, 2022, the pension plans had an actuarial gain primarily due to an increase in the discount rate and was partially offset by increases in the assumed lump sum conversion rate and cash balance account interest crediting rate. For the year ended December 31, 2022, the OPEB plans had an actuarial gain primarily due to an increase in the discount rate and updated per capita cost assumptions. The OPEB plans gains were partially offset by a projected reduction in the Employer Group Waiver Program catastrophic reinsurance offset provided to AEP, resulting from the Inflation Reduction Act as well as an increase in the health care cost trend assumption. For the year ended December 31, 2021, the pension plans had an actuarial gain primarily due to an increase in the discount rate, partially offset by less favorable demographic experience than expected, resulting from the updated census information as of January 1, 2021. For the year ended December 31, 2021, the OPEB plans had an actuarial gain primarily due to an increase in the discount rate and an update of the projected reimbursements from the Employer Group Waiver Program under Medicare Part D. The following table provides a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status. The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.


	Pension Plan				OPEB
	2022		2021		2022		2021
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	17,641	$	18,215	$	3,540	$	4,231
Service Cost	364		367		31		37
Interest Cost	521		463		99		104
Actuarial Gain	(2,861)		(192)		(300)		(514)
Plan Amendments	—		—		—		(20)
Benefit Payments	(1,131)		(1,212)		(486)		(441)
Participant Contributions	—		—		149		142
Medicare Subsidy	—		—		—		1
Benefit Obligation as of December 31,	$	14,534	$	17,641	$	3,033	$	3,540

Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	17,729	$	17,711	$	7,422	$	7,129
Actual Gain (Loss) on Plan Assets	(2,834)		1,230		(1,414)		592
Company Contributions	—		—		—		—
Participant Contributions	—		—		149		142
Benefit Payments	(1,131)		(1,212)		(486)		(441)
Fair Value of Plan Assets as of December 31,	$	13,764	$	17,729	$	5,671	$	7,422

Funded (Underfunded) Status as of December 31,	$	(770)	$	88	$	2,638	$	3,882

Amounts Recognized on the Balance Sheets


	Pension Plan				OPEB
	December 31,
	2022		2021		2022		2021
	(in thousands)
Special Funds – Prepaid Benefit Costs	$	—	$	88	$	2,638	$	3,882
Accumulated Provision for Pensions and Benefits – Long-term Benefit Liability	(770)		—		—		—
Funded (Underfunded) Status	$	(770)	$	88	$	2,638	$	3,882

Amounts Included in Regulatory Assets

The following table shows the components of the plans included in Regulatory Assets:


	Pension Plan				OPEB
	December 31,
	2022		2021		2022		2021
Components	(in thousands)
Net Actuarial (Gain) Loss	$	4,443	$	3,845	$	602	$	(912)
Prior Service Credit	—		—		(290)		(516)

Recorded as
Regulatory Assets	$	4,443	$	3,845	$	312	$	(1,428)

Components of the change in amounts included in Regulatory Assets were as follows:


	Pension Plan				OPEB
	2022		2021		2022		2021
Components	(in thousands)
Actuarial (Gain) Loss During the Year	$	813	$	(672)	$	1,514	$	(777)
Amortization of Actuarial Loss	(215)		(336)		—		—
Prior Service Credit	—		—		—		(20)
Amortization of Prior Service Credit	—		—		226		224
Change for the Year Ended December 31,	$	598	$	(1,008)	$	1,740	$	(573)

Determination of Pension Expense

The determination of pension expense or income is based on a market-related valuation of assets which reduces year-to-year volatility. This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

Pension and OPEB Assets

The fair value tables within Pension and OPEB Assets present the classification of assets for AEP within the fair value hierarchy. All Level 1, 2, 3 and Other amounts can be allocated to KGPCo using the percentages in the table below:


Pension Plan				OPEB
December 31,
2022		2021		2022		2021
0.3	%	0.3	%	0.4	%	0.4	%

The following table presents the classification of pension plan assets for AEP within the fair value hierarchy as of December 31, 2022:


Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in millions)
Equities (a):
Domestic	$	347.6	$	—	$	—	$	—	$	347.6	8.4	%
International	398.4		—		—		—		398.4		9.7	%
Common Collective Trusts (b)	—		—		—		379.9		379.9		9.2	%
Subtotal – Equities	746.0		—		—		379.9		1,125.9		27.3	%

Fixed Income (a):
United States Government and Agency Securities	(0.6)		1,071.4		—		—		1,070.8		26.0	%
Corporate Debt	—		891.7		—		—		891.7		21.6	%
Foreign Debt	—		140.2		—		—		140.2		3.4	%
State and Local Government	—		37.0		—		—		37.0		0.9	%
Other – Asset Backed	—		0.8		—		—		0.8		—	%
Subtotal – Fixed Income	(0.6)		2,141.1		—		—		2,140.5		51.9	%

Infrastructure (b)	—		—		—		109.2		109.2		2.6	%
Real Estate (b)	—		—		—		276.9		276.9		6.7	%
Alternative Investments (b)	—		—		—		319.7		319.7		7.8	%
Cash and Cash Equivalents (b)	—		64.9		—		58.3		123.2		3.0	%
Other – Pending Transactions and Accrued Income (c)	—		—		—		29.3		29.3		0.7	%

Total	$	745.4	$	2,206.0	$	—	$	1,173.3	$	4,124.7	100.0	%

(a)Includes investment securities loaned to borrowers under the securities lending program. See the “Investments Held in Trust for Future Liabilities” section of Note 1 for additional information.

(b)Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.

(c)Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following table presents the classification of OPEB plan assets for AEP within the fair value hierarchy as of December 31, 2022:


Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in millions)
Equities:
Domestic	$	414.1	$	—	$	—	$	—	$	414.1	26.7	%
International	265.0		—		—		—		265.0		17.1	%
Common Collective Trusts (a)	—		—		—		169.1		169.1		10.9	%
Subtotal – Equities	679.1		—		—		169.1		848.2		54.7	%

Fixed Income:
Common Collective Trust – Debt (a)	—		—		—		120.3		120.3		7.8	%
United States Government and Agency Securities	0.1		155.8		—		—		155.9		10.1	%
Corporate Debt	—		141.5		—		—		141.5		9.1	%
Foreign Debt	—		21.0		—		—		21.0		1.4	%
State and Local Government	62.9		7.8		—		—		70.7		4.6	%
Subtotal – Fixed Income	63.0		326.1		—		120.3		509.4		33.0	%

Trust Owned Life Insurance:
International Equities	—		46.7		—		—		46.7		3.0	%
United States Bonds	—		110.3		—		—		110.3		7.1	%
Subtotal – Trust Owned Life Insurance	—		157.0		—		—		157.0		10.1	%

Cash and Cash Equivalents (a)	23.2		—		—		6.7		29.9		1.9	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		4.8		4.8		0.3	%

Total	$	765.3	$	483.1	$	—	$	300.9	$	1,549.3	100.0	%

(a)Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.

(b)Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following table presents the classification of pension plan assets for AEP within the fair value hierarchy as of December 31, 2021:


Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in millions)
Equities (a):
Domestic	$	388.9	$	—	$	—	$	—	$	388.9	7.2	%
International	465.7		—		—		—		465.7		8.7	%
Common Collective Trusts (b)	—		—		—		463.9		463.9		8.7	%
Subtotal – Equities	854.6		—		—		463.9		1,318.5		24.6	%

Fixed Income (a):
United States Government and Agency Securities	0.1		1,557.6		—		—		1,557.7		29.1	%
Corporate Debt	—		1,295.9		—		—		1,295.9		24.2	%
Foreign Debt	—		259.4		—		—		259.4		4.8	%
State and Local Government	—		57.1		—		—		57.1		1.1	%
Other – Asset Backed	—		1.3		—		—		1.3		—	%
Subtotal – Fixed Income	0.1		3,171.3		—		—		3,171.4		59.2	%

Infrastructure (b)	—		—		—		92.1		92.1		1.7	%
Real Estate (b)	—		—		—		232.6		232.6		4.4	%
Alternative Investments (b)	—		—		—		448.8		448.8		8.4	%
Cash and Cash Equivalents (b)	—		64.3		—		53.4		117.7		2.2	%
Other – Pending Transactions and Accrued Income (c)	—		—		—		(28.2)		(28.2)		(0.5)	%

Total	$	854.7	$	3,235.6	$	—	$	1,262.6	$	5,352.9	100.0	%

(a)Includes investment securities loaned to borrowers under the securities lending program. See the “Investments Held in Trust for Future Liabilities” section of Note 1 for additional information.

(b)Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.

(c)Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following table presents the classification of OPEB plan assets for AEP within the fair value hierarchy as of December 31, 2021:


Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in millions)
Equities:
Domestic	$	474.0	$	—	$	—	$	—	$	474.0	23.2	%
International	296.3		—		—		—		296.3		14.5	%
Common Collective Trusts (a)	—		—		—		265.0		265.0		13.0	%
Subtotal – Equities	770.3		—		—		265.0		1,035.3		50.7	%

Fixed Income:
Common Collective Trust – Debt (a)	—		—		—		167.7		167.7		8.2	%
United States Government and Agency Securities	—		222.4		—		—		222.4		10.9	%
Corporate Debt	—		233.2		—		—		233.2		11.4	%
Foreign Debt	—		39.8		—		—		39.8		2.0	%
State and Local Government	91.9		13.6		—		—		105.5		5.1	%
Subtotal – Fixed Income	91.9		509.0		—		167.7		768.6		37.6	%

Trust Owned Life Insurance:
International Equities	—		23.4		—		—		23.4		1.1	%
United States Bonds	—		171.3		—		—		171.3		8.4	%
Subtotal – Trust Owned Life Insurance	—		194.7		—		—		194.7		9.5	%

Cash and Cash Equivalents (a)	33.0		—		—		6.7		39.7		1.9	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		6.0		6.0		0.3	%

Total	$	895.2	$	703.7	$	—	$	445.4	$	2,044.3	100.0	%

(a)Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.

(b)Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Accumulated Benefit Obligation

As of December 31, 2022 and 2021, the accumulated benefit obligation for the qualified pension plan was $14.1 million and $17 million, respectively.

Obligations in Excess of Fair Values

The tables below show the underfunded pension plan that had obligations in excess of plan assets.

Projected Benefit Obligation


	Underfunded Pension Plan
	December 31,
	2022
	(in thousands)
Projected Benefit Obligation	$	14,534
Fair Value of Plan Assets	13,764
Underfunded Projected Benefit Obligation	$	(770)

Accumulated Benefit Obligation


	Underfunded Pension Plan
	December 31,
	2022
	(in thousands)
Accumulated Benefit Obligation	$	14,128
Fair Value of Plan Assets	13,764
Underfunded Accumulated Benefit Obligation	$	(364)

Estimated Future Benefit Payments and Contributions

The table below reflects the total benefits expected to be paid from the plan’s assets. The payments include the participants’ contributions to the plan for their share of the cost. Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results. The estimated payments for pension benefits and OPEB are as follows:


	Estimated Payments
	Pension Plan		OPEB
	(in thousands)
2023	$	1,223	$	393
2024	1,240		421
2025	1,256		450
2026	1,316		465
2027	1,289		482
Years 2028 to 2032, in Total	6,299		2,284

Components of Net Periodic Benefit Cost

The following table provides the components of net periodic benefit cost (credit):


	Pension Plan				OPEB
	Years Ended December 31,
	2022		2021		2022		2021
	(in thousands)
Service Cost	$	364	$	367	$	31	$	37
Interest Cost	521		463		99		104
Expected Return on Plan Assets	(841)		(751)		(400)		(328)
Amortization of Prior Service Credit	—		—		(226)		(224)
Amortization of Net Actuarial Loss	215		336		—		—
Net Periodic Benefit Cost (Credit)	259		415		(496)		(411)
Capitalized Portion	(204)		(213)		(17)		(22)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	55	$	202	$	(513)	$	(433)

American Electric Power System Retirement Savings Plan

KGPCo participates in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees. This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for matching contributions. The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions. The cost for matching contributions was $222 thousand and $216 thousand in 2022 and 2021, respectively.

7. DERIVATIVES AND HEDGING

AEPSC is agent for and transacts on behalf of KGPCo.

Risk Management Strategies

KGPCo’s vehicle fleet is exposed to gasoline and diesel fuel price volatility. KGPCo utilizes financial heating oil and gasoline derivative contracts in order to mitigate price risk of future fuel purchases. KGPCo does not hedge all fuel price risk. The gross notional volumes of KGPCo’s outstanding derivative contracts for heating oil and gasoline as of December 31, 2022 and 2021 were 32 thousand gallons and 32 thousand gallons, respectively.

ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND THE IMPACT ON KGPCo’s FINANCIAL STATEMENTS

According to the accounting guidance for “Derivatives and Hedging,” KGPCo reflects the fair values of derivative instruments subject to netting agreements with the same counterparty net of related cash collateral. For certain risk management contracts, KGPCo is required to post or receive cash collateral based on third party contractual agreements and risk profiles. The amount of cash collateral received from third-parties netted against short-term and long-term risk management assets and the amount of cash collateral paid to third-parties netted against short-term and long-term risk management liabilities were immaterial for KGPCo as of December 31, 2022 and 2021.

The following table represents the gross fair value impact of KGPCo’s derivative activity on the balance sheets as of December 31, 2021. There were no derivative instrument assets and derivative instrument liabilities outstanding as of December 31, 2022.


Fair Value of Derivative Instruments













December 31, 2021

	Risk Management		Gross Amounts Offset		Net Amounts of Assets/Liabilities
	Contracts -		in the Statement of		Presented in the Statement
Balance Sheet Location	Commodity (a)		Financial Position (b)		of Financial Position (c)
	(in thousands)
Derivative Instrument Assets	$	10	$	(10)	$	—
Long-Term Portion of Derivative Instrument Assets	—		—		—

Derivative Instrument Liabilities	—		—		—
Long-Term Portion of Derivative Instrument Liabilities	—		—		—

(a) Derivative instruments within these categories are disclosed as gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for “Derivatives and Hedging.”

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for “Derivatives and Hedging.”

(c) All derivative contracts subject to a master netting arrangement or similar agreement are offset in the statement of financial position.

The table below presents KGPCo’s activity of derivative risk management contracts:

Amount of Gain (Loss) Recognized on

Risk Management Contracts


	Years Ended December 31,
Location of Gain (Loss)	2022		2021
	(in thousands)
Operation Expenses	$	10	$	9
Maintenance Expenses	30		14

Other Regulatory Liability (a)	(9)		2
Total Gain on Risk Management Contracts	$	31	$	25

(a) Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.

Certain qualifying derivative instruments have been designated as normal purchase or normal sale contracts, as provided in the accounting guidance for “Derivatives and Hedging.” Derivative contracts that have been designated as normal purchases or normal sales under that accounting guidance are not subject to MTM accounting treatment and are recognized on the statements of income on an accrual basis.

The accounting for the changes in the fair value of a derivative instrument depends on whether it qualifies for and has been designated as part of a hedging relationship and further, on the type of hedging relationship. Depending on the exposure, management designates a hedging instrument as a fair value hedge or a cash flow hedge.

For contracts that have not been designated as part of a hedging relationship, the accounting for changes in fair value depends on whether the derivative instrument is held for trading purposes. Unrealized and realized gains and losses on derivative instruments held for trading purposes are included in revenues on a net basis on KGPCo’s statements of income. Unrealized and realized gains and losses on derivative instruments not held for trading purposes are included in revenues or expenses on KGPCo’s statements of income depending on the relevant facts and circumstances. Certain derivatives that economically hedge future commodity risk are recorded in the same line item on the statements of income as that of the associated risk being hedged. However, unrealized and some realized gains and losses for both trading and non-trading derivative instruments are recorded as regulatory assets (for losses) or regulatory liabilities (for gains), in accordance with the accounting guidance for “Regulated Operations.”

8. FAIR VALUE MEASUREMENTS

Fair Value Measurements of Long-Term Debt

The fair values of Long-Term Debt are based on quoted market prices, without credit enhancements, for the same or similar issues and the current interest rates offered for instruments with similar maturities classified as Level 2 measurement inputs. These instruments are not marked-to-market. The estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange.

The book values and fair values of KGPCo’s Long-Term Debt are summarized in the following table:


	December 31,
	2022				2021
	Book Value		Fair Value		Book Value		Fair Value
	(in thousands)
Long-Term Debt	$	85,000	$	69,440	$	65,000	$	67,266

Fair Value Measurements of Financial Assets and Liabilities

For a discussion of fair value accounting and the classification of assets and liabilities within the fair value hierarchy, see the “Fair Value Measurements of Assets and Liabilities” section of Note 1.

The following table set forth, by level within the fair value hierarchy, KGPCo’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2021. There were no assets and liabilities measured at fair value on a recurring basis as of December 31, 2022. As required by the accounting guidance for “Fair Value Measurements and Disclosures,” financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Management’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There have not been any significant changes in management’s valuation techniques.

Assets and Liabilities Measured at Fair Value on a Recurring Basis


December 31, 2021

		Level 1		Level 2		Level 3		Other		Total
Derivative Instrument Assets		(in thousands)
Risk Management Commodity Contracts (a)		$	—	$	10	$	—	$	(10)	$	—

(a)	Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”

As of December 31, 2021, KGPCo had no liabilities measured at fair value on a recurring basis.

There were no transfers between Level 1 and Level 2 during the years ended December 31, 2022 and 2021.

9. INCOME TAXES

Income Tax Expense (Benefit)

The details of KGPCo’s Income Tax Benefit are as follows:


	Year Ended December 31,
	2022		2021
	(in thousands)
Charged (Credited) to Operating Expenses, Net:
Current	$	(5,568)	$	(695)
Deferred	2,480		292
Total	(3,088)		(403)

Charged (Credited) to Non-Operating Income, Net:
Current	(296)		(140)
Deferred	3		(17)
Total	(293)		(157)
Income Tax Benefit	$	(3,381)	$	(560)

The following is a reconciliation of the difference between the amount of federal income taxes computed by multiplying book income before income taxes by the federal statutory tax rate and the amount of income taxes reported:


		Years Ended December 31,
		2022			2021
		(in thousands)
Net Income		$	7,456		$	3,327
Income Tax Benefit		(3,381)			(560)
Pretax Income		$	4,075		$	2,767

Income Taxes on Pretax Income at Statutory Rate (21%)		$	856		$	581
Increase (Decrease) in Income Taxes Resulting from the Following Items:
	Reversal of Origination Flow-Through	7			78
	Removal Costs	(411)			(171)

	State and Local Income Taxes, Net	(1,295)			(806)
	Tax Adjustments (a)	—			56
	Tax Reform Excess ADIT Reversal	(208)			(413)
	Federal Return to Provision Adjustment	45			67
	Remeasurement of Regulatory Liability	(2,342)			—
	Other	(33)			48
Income Tax Benefit		$	(3,381)		$	(560)

Effective Income Tax Rate		(83.0)		%	(20.2)		%

(a)Represents an out of period adjustment related to Deferred Income Taxes and Income Tax Expense (Benefit). Management concluded the misstatement and subsequent correction was not material to prior or current period financial statements.

Net Deferred Tax Liability

The following table shows elements of KGPCo’s net deferred tax liability and significant temporary differences:


	December 31,
	2022		2021
	(in thousands)
Deferred Tax Assets	$	9,051	$	9,077
Deferred Tax Liabilities	(45,450)		(37,048)
Net Deferred Tax Liabilities	$	(36,399)	$	(27,971)

Property Related Temporary Differences	$	(23,635)	$	(23,180)
Amounts Due to Customers for Future Income Taxes	1,687		2,511
Deferred State Income Taxes	(9,208)		(7,168)
Regulatory Assets	(9,579)		(4,465)
Net Operating Loss Carryforward	3,439		3,758
All Other, Net	897		573
Net Deferred Tax Liabilities	$	(36,399)	$	(27,971)

Federal and State Income Tax Audit Status

The statute of limitations for the IRS to examine KGPCo and other AEP subsidiaries originally filed federal return has expired for tax years 2016 and earlier. KGPCo and other AEP subsidiaries have agreed to extend the statute of limitations on the 2017 and 2018 tax returns to December 31, 2023, to allow time for the current IRS audit to be completed including a refund claim approval by the Congressional Joint Committee on Taxation. The statute of limitations for the 2019 return is set to naturally expire in 2023 as well.

The current IRS audit and associated refund claim evolved from a net operating loss carryback to 2015 that originated in the 2017 return. KGPCo and other AEP subsidiaries have received and agreed to two IRS proposed adjustments on the 2017 tax return, which were immaterial. The exam is nearly complete, and KGPCo and other AEP subsidiaries are currently working with the IRS to submit the refund claim to the Congressional Joint Committee on Taxation for resolution and final approval.

KGPCo and other AEP subsidiaries file income tax returns in various state and local jurisdictions. These taxing authorities routinely examine the tax returns, and KGPCo and other AEP subsidiaries are currently under examination in several state and local jurisdictions. Generally, the statutes of limitations have expired for tax years prior to 2017. In addition, management is monitoring and continues to evaluate the potential impact of federal legislation and corresponding state conformity.

Net Income Tax Operating Loss Carryforward

KGPCo had $0 and $7.7 million of federal net income tax operating loss carryforward as of December 31, 2022 and 2021, respectively. As a result, KGPCo recognized $0 and $1.6 million of deferred federal income tax benefit in 2022 and 2021, respectively. KGPCo also had Tennessee state net income tax operating loss carryforwards of $67 million and $41.9 million in 2022 and 2021, respectively. As a result, KGPCo recognized deferred state income tax benefits of $4.4 million and $2.7 million in 2022 and 2021, respectively. This carryforward for Tennessee expires between 2030 and 2037. Management anticipates future taxable income will be sufficient to realize both the federal and state net income tax operating loss tax benefits.

Federal Tax Legislation

Inflation Reduction Act

In August 2022, President Biden signed H.R. 5376 into law, commonly known as the Inflation Reduction Act of 2022 or IRA. Most notably this budget reconciliation legislation creates a 15% minimum tax on adjusted financial statement income (Corporate Alternative Minimum Tax or CAMT), extends and increases the value of PTCs and ITCs, adds a nuclear and clean hydrogen PTC, an energy storage ITC and allows the sale or transfer of tax credits to third parties for cash. This legislation has no material impact on the current period financial statements. As further significant guidance from Treasury and the IRS is expected on the tax provisions in the IRA, AEP will continue to monitor any issued guidance and evaluate the impact on future net income, cash flows and financial condition.

In November 2022, the IRS released Notice 2022-61 addressing the Prevailing Wage and Apprenticeship Requirements (PWAR) tied to full value PTCs and ITCs for projects that begin construction on or after January 29, 2023. AEP’s future renewable energy projects that begin construction after this date will be required to, and expect to, satisfy the PWAR to receive full value ITCs and PTCs.

In December 2022, the IRS released Notice 2023-7 addressing time sensitive issues related to the CAMT. The notice provided initial guidance that AEP can begin to rely on in 2023 and also stated that additional guidance is expected, of which AEP will continue to monitor and assess. Notably, the interim guidance in Notice 2023-7 confirmed the CAMT depreciation adjustment includes tax depreciation that is capitalized to inventory under §263A and recovered as part of cost of goods sold, providing significant relief to AEP’s potential CAMT exposure.

The enactment of the IRA will have future cash flow and income tax reporting considerations. AEP and subsidiaries expect to be applicable corporations beginning in 2023 and expect to have CAMT cash tax payments beginning in 2024. CAMT cash taxes are expected to be offset by regulatory recovery, the utilization of tax credits and additionally the cash inflow generated by the sale of tax credits. The sale of tax credits will be presented in the operating section of the statements of cash flows consistent with the presentation of cash taxes paid. AEP will present the gain or loss on sale of tax credits through income tax expense. Management believes this presentation provides consistency in financial statement reporting as it matches the originating income tax benefit of the tax credits.

State Tax Legislation

In April 2021, West Virginia enacted House Bill (HB) 2026. HB 2026 changes the state income tax apportionment formula from a ratio that includes property, payroll and sales to a single sales factor apportionment regime effective for tax years beginning on or after January 1, 2022. HB 2026 also eliminates the “throw out” rule related to sales of tangible personal property for sales factor apportionment calculation purposes and introduces a market-based sourcing for sales of services and intangible property.

10. LEASES

KGPCo leases property, plant and equipment including, but not limited to, fleet, information technology and real estate leases. These leases require payments of non-lease components, including related property taxes, operating and maintenance costs. KGPCo does not separate non-lease components from associated lease components. Many of these leases have purchase or renewal options. Leases not renewed are often replaced by other leases. Options to renew or purchase a lease are included in the measurement of lease assets and liabilities if it is reasonably certain that KGPCo will exercise the option.

Lease obligations are measured using the discount rate implicit in the lease when that rate is readily determinable. KGPCo has visibility into the rate implicit in the lease when assets are leased from selected financial institutions under master leasing agreements. When the implicit rate is not readily determinable, KGPCo measures its lease obligation using its estimated secured incremental borrowing rate. Incremental borrowing rates are comprised of an underlying risk free rate and a secured credit spread relative to the lessee on a matched maturity basis.

Operating and Finance lease rental costs are generally charged to Operation Expenses and Maintenance Expenses in accordance with rate-making treatment for regulated operations. Lease costs associated with capital projects are included in Utility Plant on the balance sheets. For regulated operations with finance leases, a finance lease asset and offsetting liability are recorded at the present value of the remaining lease payments for each reporting period. The components of rental costs were as follows:


	Years Ended December 31,
Lease Rental Costs	2022		2021
	(in thousands)
Operating Lease Cost	$	441	$	481
Finance Lease Cost:
Amortization of Right-of-Use Assets	199		165
Interest on Lease Liabilities	26		27
Total Lease Rental Costs (a)	$	666	$	673

(a)Excludes variable and short-term lease costs, which were immaterial.

Supplemental information related to leases is shown in the tables below.


Lease Type	Weighted-Average Remaining Lease Term (years)		Weighted-Average Discount Rate
	December 31,
	2022	2021	2022		2021
Operating Leases	6.15	7.11	3.54	%	3.24	%
Finance Leases	4.67	5.39	4.08	%	3.78	%


	Years Ended December 31,
	2022		2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities	(in thousands)
Operating Cash Flows from Operating Leases	$	481	$	481
Operating Cash Flows from Finance Leases	192		192

Non-cash Acquisitions Under Operating Leases	$	366	$	48

The following tables show the property, plant and equipment under finance leases, operating leases and related obligations recorded on KGPCo’s balance sheets.


	December 31,
	2022		2021
	(in thousands)
Property, Plant and Equipment Under Finance Leases
Utility Plant (a)	$	632	$	711

Obligations Under Finance Leases
Noncurrent	$	433	$	535
Current	198		176
Total Obligations Under Finance Leases	$	631	$	711

(a)Includes $430 thousand and $373 thousand of accumulated provision for depreciation and amortization for the years ended December 31, 2022 and 2021, respectively.


	December 31,
	2022		2021
Property, Plant and Equipment Under Operating Leases	(in thousands)
Utility Plant (a)	$	2,212	$	2,436

Obligations Under Operating Leases
Noncurrent	$	1,842	$	2,073
Current	372		365
Total Obligations Under Operating Leases	$	2,214	$	2,438

(a)Includes $980 thousand and $749 thousand of accumulated provision for depreciation and amortization for the years ended December 31, 2022 and 2021, respectively.

Future minimum lease payments consisted of the following as of December 31, 2022:


Future Minimum Lease Payments	Finance Leases		Operating Leases
	(in thousands)
2023	$	220	$	454
2024	145		433
2025	97		404
2026	89		361
2027	66		319
After 2027	78		504
Total Future Minimum Lease Payments	695		2,475
Less: Imputed Interest	64		261
Estimated Present Value of Future Minimum Lease Payments	$	631	$	2,214

Master Lease Agreements

KGPCo leases certain equipment under master lease agreements. Under the lease agreements, the lessor is guaranteed a residual value up to a stated percentage of the equipment cost at the end of the lease term. If the actual fair value of the leased equipment is below the guaranteed residual value at the end of the lease term, KGPCo is committed to pay the difference between the actual fair value and the residual value guarantee. Historically, at the end of the lease term the fair value has been in excess of the amount guaranteed. As of December 31, 2022, the maximum potential loss for these lease agreements was $282 thousand assuming the fair value of the equipment is zero at the end of the lease term.

Lessor Activity

KGPCo’s lessor activity was immaterial as of and for the twelve months ended December 31, 2022 and December 31, 2021, respectively.

11. FINANCING ACTIVITIES

Long-Term Debt

The following table details Long-Term Debt outstanding:


		Weighted-Average	Interest Rate Ranges as of		Outstanding as of
		Interest Rate as of	December 31,		December 31,
Type of Debt	Maturity	December 31, 2022	2022	2021	2022		2021
					(in thousands)
Notes Payable - Affiliated	2027-2042	3.25%	2.84%-4.65%	2.84%-3.42%	$	85,000	$	65,000
Total Long-Term Debt Outstanding					$	85,000	$	65,000

Dividend Restrictions

KGPCo pays dividends to Parent provided funds are legally available. Various financing arrangements and regulatory requirements may impose certain restrictions on the ability of KGPCo to transfer funds to Parent in the form of dividends.

All of the dividends declared by KGPCo are subject to a Federal Power Act requirement that prohibits the payment of dividends out of capital accounts in certain circumstances; payment of dividends is generally allowed out of retained earnings.

The most restrictive dividend limitation for KGPCo is through the Federal Power Act. As of December 31, 2022, the maximum amount of restricted net assets of KGPCo that may not be distributed to Parent in the form of a loan, advance or dividend was $59.9 million.

Corporate Borrowing Program – AEP System

The AEP System uses a corporate borrowing program to meet the short-term borrowing needs of AEP’s subsidiaries. The corporate borrowing program includes a Utility Money Pool, which funds AEP’s utility subsidiaries. The AEP System Utility Money Pool operates in accordance with the terms and conditions of the AEP System Utility Money Pool agreement filed with the FERC. The amounts of outstanding borrowings from the Utility Money Pool as of December 31, 2022 and 2021 are included in Notes Payable to Associated Companies on KGPCo’s balance sheets. KGPCo’s Utility Money Pool activity and corresponding authorized borrowing limits are described in the following table:


	Maximum		Maximum		Average		Average		Borrowings from		Authorized
	Borrowings		Loans		Borrowings		Loans		the Utility		Short-Term
Years Ended	from the Utility		to the Utility		from the Utility		to the Utility		Money Pool as of		Borrowing
December 31,	Money Pool		Money Pool		Money Pool		Money Pool		December 31,		Limit
	(in thousands)
2022	$	29,429	$	9,257	$	12,189	$	3,494	$	6,209	$	30,000
2021	25,138		2,661		11,203		2,118		19,859		30,000

Maximum, minimum and average interest rates for funds either borrowed from or loaned to the Utility Money Pool are summarized in the following table:

Maximum

Minimum

Maximum

Minimum

Average

Interest Rate

for Funds

Borrowed

Loaned

Borrowed

Loaned

Years Ended

from the Utility

to the Utility

from the Utility

to the Utility

December 31,

Money Pool

2022

5.28%

0.46%

2.54%

0.10%

2.51%

1.41%

2021

0.48%

0.02%

0.38%

0.27%

0.23%

0.31%

Interest expense and interest income related to the Utility Money Pool are included in Interest on Debt to Associated Companies and Interest and Dividend Income, respectively, on KGPCo’s statements of income. For amounts borrowed from the Utility Money Pool, KGPCo incurred the following amounts of interest expense:


	Years Ended December 31,
	2022		2021
	(in thousands)
Interest on Debt to Associated Companies	$	269	$	26

Securitized Accounts Receivables – AEP Credit

Under a sale of receivables arrangement, KGPCo sells, without recourse, certain of its customer accounts receivable and accrued utility revenue balances to AEP Credit and is charged a fee based on AEP Credit’s financing costs, administrative costs and uncollectible accounts experience for KGPCo’s receivables. The costs of customer accounts receivable sold are reported in Other Deductions on KGPCo’s statements of income. KGPCo manages and services its accounts receivable sold.

AEP Credit has a receivables securitization agreement that provides a commitment of $750 million from bank conduits to purchase receivables and was amended in September 2021 to include a $125 million and a $625 million facility. The $125 million facility was renewed in September 2022 and amended to extend the expiration date to September 2024. The $625 million facility also expires in September 2024. As of December 31, 2022, KGPCo was in compliance with all requirements under the agreement.

KGPCo’s factored accounts receivable revenues were $14 million and $12 million as of December 31, 2022 and 2021, respectively. KGPCo’s factored accrued utility revenues were $3.6 million and $2.5 million as of December 31, 2022 and 2021, respectively.

The fees paid by KGPCo to AEP Credit for customer accounts receivable sold were $796 thousand and $394 thousand for the years ended December 31, 2022 and 2021, respectively. In 2021, due to the successful collection of accounts receivable balances during the COVID-19 pandemic, the allowance for doubtful accounts was reduced, resulting in the issuance of credits to offset the higher fees previously paid and to lower subsequent fees paid.

KGPCo’s proceeds on the sale of receivables to AEP Credit were $187.3 million and $152.4 million for the years ended December 31, 2022 and 2021, respectively.

12. RELATED PARTY TRANSACTIONS

For other related party transactions, also see “AEP System Tax Allocation” section of Note 1 in addition to “Corporate Borrowing Program – AEP System” and “Securitized Accounts Receivables – AEP Credit” sections of Note 11.

Affiliated Revenues and Purchases

KGPCo provides transmission services directly to APCo which are approved by the FERC. KGPCo’s revenues of $79 thousand and $53 thousand for these services for the years ended December 31, 2022 and 2021, respectively, were recorded in Operating Revenues on KGPCo’s statements of income. KGPCo also purchases all of its power from APCo based on a FERC-approved rate. KGPCo’s purchases of $132.8 million and $96 million for the years ended December 31, 2022 and 2021, respectively, were recorded in Operation Expenses on KGPCo’s statements of income. Effective September 1, 2016, KGPCo implemented the Fuel and Purchased Power Adjustment Rider (FPPAR) rates per the approved TPUC order in KGPCo’s base rate case, which included, for the first time, monthly over-recovery or under-recovery accounting for the difference between the actual total costs billed monthly to KGPCo from APCo, and the actual monthly revenues recorded under the FPPAR. For the years ended December 31, 2022 and 2021, KGPCo had a regulatory asset of $36.6 million and $12.1 million, respectively. The activity above is excluded from the Transmission Agreement activity discussed below.

Transmission Agreement (TA)

APCo, I&M, KGPCo, KPCo, OPCo and WPCo (AEP East Companies) are parties to the TA, which defines how transmission costs through PJM OATT are allocated among the AEP East Companies on a 12-month average coincident peak basis.

KGPCo’s revenues recorded in Operating Revenues on its statements of income as a result of the TA for the years ended December 31, 2022 and 2021 were $5 million and $4.2 million, respectively. KGPCo’s charges recorded in Operation Expenses on its statements of income as a result of the TA for the years ended December 31, 2022 and 2021 were $36.8 million and $32.6 million, respectively.

Sales and Purchases of Property

KGPCo had affiliated sales and purchases of meters and transformers. There were no gains or losses recorded on the transactions. The following table shows the sales and purchases that were recorded at net book value:


	Years Ended December 31,
	2022		2021
	(in thousands)
Sales	$	348	$	320
Purchases	620		543

The amounts above are recorded in Utility Plant on the balance sheets.

Global Borrowing Notes

AEP had six and four intercompany notes in place with KGPCo as of December 31, 2022 and 2021, respectively. The debt is reflected in Advances from Associated Companies on KGPCo’s balance sheets. KGPCo accrues interest for its share of the global borrowing and remits the interest to AEP. The accrued interest is reflected in Interest Accrued on KGPCo’s balance sheets.

Intercompany Billings

KGPCo performs certain utility services for other AEP subsidiaries when necessary or practical. The costs of these services are billed on a direct-charge basis, whenever possible, or on reasonable bases of proration for services that benefit multiple companies. The billings for services are made at cost and include no compensation for the use of equity capital.

Charitable Contributions to AEP Foundation

The American Electric Power Foundation is funded by American Electric Power and its utility operating units. The Foundation provides a permanent, ongoing resource for charitable initiatives and multi-year commitments in the communities served by AEP and initiatives outside of AEP’s 11-state service area. In 2022, KGPCo contributed $258 thousand to the AEP Foundation which was recorded in Donations on the statements of income. In 2021, there were no charitable contributions made to the AEP Foundation.

AEPSC

AEPSC provides certain managerial and professional services to AEP’s subsidiaries. The costs of the services are based on a direct charge or on a prorated basis and billed to the AEP subsidiary companies at AEPSC’s cost. AEPSC and its billings are subject to regulation by the FERC. KGPCo’s total billings from AEPSC for the years ended December 31, 2022 and 2021 were $10.8 million and $7.7 million, respectively.

13. PROPERTY, PLANT AND EQUIPMENT

Depreciation

KGPCo provides for depreciation of Property, Plant and Equipment on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following table provides the annual composite depreciation rates by functional class:


	Years Ended December 31,
Functional Class of Property	2022		2021
Transmission	1.7	%	1.5	%
Distribution	3.4	%	3.5	%
Other	8.1	%	8.4	%

Expenditures for demolition and removal of property, plant and equipment are charged to the accumulated provision for depreciation and recovered through depreciation charges included in rates. The higher composite depreciation rate in the other class of property compared to the rate of transmission and distribution is due to capitalized software, which has a relatively shorter expected useful life compared to the transmission and distribution functional property classes.

The composite depreciation rate generally includes a component for removal costs, which is credited to accumulated depreciation. Actual removal costs incurred are charged to accumulated depreciation.

Asset Retirement Obligations

KGPCo has identified, but not recognized, ARO liabilities related to electric transmission and distribution assets, as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property’s use. The retirement obligation is not estimable for such easements since KGPCo plans to use its facilities indefinitely. The retirement obligation would only be recognized if and when KGPCo abandons or ceases the use of specific easements, which is not expected.

14. REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregated Revenues from Contracts with Customers

The table below represents KGPCo’s revenues from contracts with customers, net of respective provisions for refund, by type of revenue:


	Years Ended December 31,
	2022		2021
	(in thousands)
Retail Revenues:
Residential Revenues	$	71,373	$	66,238
Commercial Revenues	42,298		38,477
Industrial Revenues	64,099		41,974
Other Retail Revenues	4,413		4,108
Total Retail Revenues	182,183		150,797

Wholesale Revenues:
Transmission Revenues (a)	4,877		4,927
Total Wholesale Revenues	4,877		4,927

Other Revenues from Contracts with Customers (a)	1,755		837

Total Revenues from Contracts with Customers	188,815		156,561

Other Revenues:
Alternative Revenues	1,067		187
Total Other Revenues	1,067		187

Total Operating Revenues	$	189,882	$	156,748

(a) Amounts include affiliated and nonaffiliated revenues.

Performance Obligations

KGPCo has performance obligations as part of its normal course of business. A performance obligation is a promise to transfer a distinct good or service, or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to a customer. The invoice practical expedient within the accounting guidance for “Revenue from Contracts with Customers” allows for the recognition of revenue from performance obligations in the amount of consideration to which there is a right to invoice the customer and when the amount for which there is a right to invoice corresponds directly to the value transferred to the customer.

The purpose of the invoice practical expedient is to depict an entity’s measure of progress toward completion of the performance obligation within a contract and can only be applied to performance obligations that are satisfied over time and when the invoice is representative of services provided to date. AEP subsidiaries, including KGPCo, elected to apply the invoice practical expedient to recognize revenue for performance obligations satisfied over time as the invoices from the respective revenue streams are representative of services or goods provided to date to the customer. Performance obligations for KGPCo are summarized as follows:

Retail Revenues

KGPCo has performance obligations to purchase, sell, transmit and distribute electricity for sale to rate-regulated retail customers. The performance obligation to deliver electricity is satisfied over time as the customer simultaneously receives and consumes the benefits provided. Revenues are variable as they are subject to the customer’s usage requirements.

Rate-regulated retail customers typically have the right to discontinue receiving service at will, therefore these contracts between KGPCo and their customers for rate-regulated services are generally limited to the services requested and received to date for such arrangements. Retail customers are generally billed on a monthly basis, and payment is typically due within 15 to 20 days after the issuance of the invoice.

Wholesale Revenues - Transmission

KGPCo has performance obligations to transmit electricity to wholesale customers through assets owned and operated by KGPCo and other AEP subsidiaries. The performance obligation to provide transmission services in PJM is partially fixed for a period of one year or less. Payments from the RTO for transmission services are typically received within one week from the issuance of the invoice, which is issued weekly for PJM.

KGPCo collects revenues through Transmission Formula Rates. The FERC-approved rates establish the annual transmission revenue requirement (ATRR) and transmission service rates for transmission owners. The formula rates establish rates for a one year period and also include a true-up calculation for the prior year’s billings, allowing for over/under-recovery of the transmission owner’s ATRR. The annual true-ups meet the definition of alternative revenues in accordance with the accounting guidance for “Regulated Operations,” and are therefore presented as such in the disaggregated revenues table above.

APCo, I&M, KGPCo, KPCo, OPCo and WPCo (AEP East Companies) are parties to the Transmission Agreement (TA), which defines how transmission costs are allocated among the AEP East Companies on a 12-month average coincident peak basis. AEPTCo is a load serving entity within PJM providing transmission services to affiliates in accordance with the OATT and TA. Affiliate revenues as a result of the TA are reflected as Transmission Revenues in the disaggregated revenues table above.

Fixed Performance Obligations

KGPCo’s fixed performance obligations are satisfied over time. Fixed performance obligations primarily include electricity sales for fixed amounts of energy and stand ready services into PJM’s RPM market. The revenues from fixed performance Obligations include affiliated and nonaffiliated. KGPCo and other AEP subsidiaries elected to apply the exemption to not disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less. Due to the annual establishment of revenue requirements, transmission revenues are excluded from the fixed performance obligations satisfied over time. As of December 31, 2022, KGPCo had no remaining fixed performance obligations satisfied over time.

Contract Assets and Liabilities

Contract assets are recognized when KGPCo has a right to consideration that is conditional upon the occurrence of an event other than the passage of time, such as future performance under a contract. KGPCo did not have material contract assets as of December 31, 2022 and 2021.

When KGPCo receives consideration, or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, they recognize a contract liability on the balance sheet in the amount of that consideration. Revenue for such consideration is subsequently recognized in the period or periods in which the remaining performance obligations in the contract are satisfied. KGPCo did not have material contract liabilities as of December 31, 2022 and 2021.

Accounts Receivable from Contracts with Customers

Accounts receivable from contracts with customers are presented on KGPCo’s balance sheets within the Customer Accounts Receivable line item. KGPCo’s balances for receivables from contracts that are not recognized in accordance with the accounting guidance for “Revenue from Contracts with Customers” included in Customer Accounts Receivable were not material as of December 31, 2022 and 2021. See “Securitized Accounts Receivable - AEP Credit” section of Note 11 for additional information related to AEP Credit’s securitized accounts receivable.

The amount of affiliated accounts receivable from contracts with customers included in Accounts Receivable from Associated Companies on KGPCo’s balance sheets were $449 thousand and $403 thousand, respectively as of December 31, 2022 and 2021.

Contract Costs

Contract costs to obtain or fulfill a contract are accounted for under the guidance for “Other Assets and Deferred Costs” and presented as a single asset and neither bifurcated nor reclassified between current and noncurrent assets on KGPCo’s balance sheets. Contract costs to acquire a contract are amortized in a manner consistent with the transfer of goods or services to the customer in Operation Expenses on KGPCo’s statements of income. KGPCo did not have material contract costs as of December 31, 2022 and 2021.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, AND HEDGING ACTIVITIES
Report in columns (b),(c),(d) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affected and the related amounts in a footnote. Report data on a year-to-date basis.
Line No.	Item (a)	Unrealized Gains and Losses on Available-For-Sale Securities (b)	Minimum Pension Liability Adjustment (net amount) (c)	Foreign Currency Hedges (d)	Other Adjustments (e)	Other Cash Flow Hedges Interest Rate Swaps (f)	Other Cash Flow Hedges [Specify] (g)	Totals for each category of items recorded in Account 219 (h)	Net Income (Carried Forward from Page 116, Line 78) (i)	Total Comprehensive Income (j)
1	Balance of Account 219 at Beginning of Preceding Year
2	Preceding Quarter/Year to Date Reclassifications from Account 219 to Net Income
3	Preceding Quarter/Year to Date Changes in Fair Value
4	Total (lines 2 and 3)								3,327,023	3,327,023
5	Balance of Account 219 at End of Preceding Quarter/Year
6	Balance of Account 219 at Beginning of Current Year
7	Current Quarter/Year to Date Reclassifications from Account 219 to Net Income
8	Current Quarter/Year to Date Changes in Fair Value
9	Total (lines 7 and 8)								7,455,946	7,455,946
10	Balance of Account 219 at End of Current Quarter/Year

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION. AMORTIZATION AND DEPLETION
Report in Column (c) the amount for electric function, in column (d) the amount for gas function, in column (e), (f), and (g) report other (specify) and in column (h) common function.
Line No.	Classification (a)	Total Company For the Current Year/Quarter Ended (b)	Electric (c)	Gas (d)	Other (Specify) (e)	Other (Specify) (f)	Other (Specify) (g)	Common (h)
1	UtilityPlantAbstract UTILITY PLANT
2	UtilityPlantInServiceAbstract In Service
3	UtilityPlantInServiceClassified Plant in Service (Classified)	275,412,515	275,412,515
4	UtilityPlantInServicePropertyUnderCapitalLeases Property Under Capital Leases	2,842,737	2,842,737
5	UtilityPlantInServicePlantPurchasedOrSold Plant Purchased or Sold
6	UtilityPlantInServiceCompletedConstructionNotClassified Completed Construction not Classified	11,705,825	11,705,825
7	UtilityPlantInServiceExperimentalPlantUnclassified Experimental Plant Unclassified
8	UtilityPlantInServiceClassifiedAndUnclassified Total (3 thru 7)	289,961,077	289,961,077
9	UtilityPlantLeasedToOthers Leased to Others
10	UtilityPlantHeldForFutureUse Held for Future Use
11	ConstructionWorkInProgress Construction Work in Progress	24,049,222	24,049,222
12	UtilityPlantAcquisitionAdjustment Acquisition Adjustments
13	UtilityPlantAndConstructionWorkInProgress Total Utility Plant (8 thru 12)	314,010,299	314,010,299
14	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility Accumulated Provisions for Depreciation, Amortization, & Depletion	96,962,084	96,962,084
15	UtilityPlantNet Net Utility Plant (13 less 14)	217,048,215	217,048,215
16	DetailOfAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17	AccumulatedProvisionForDepreciationAmortizationAndDepletionUtilityPlantInServiceAbstract In Service:
18	DepreciationUtilityPlantInService Depreciation	93,585,674	93,585,674
19	AmortizationAndDepletionOfProducingNaturalGasLandAndLandRightsutilityPlantInService Amortization and Depletion of Producing Natural Gas Land and Land Rights
20	AmortizationOfUndergroundStorageLandAndLandRightsutilityPlantInService Amortization of Underground Storage Land and Land Rights
21	AmortizationOfOtherUtilityPlantUtilityPlantInService Amortization of Other Utility Plant	3,376,410	3,376,410
22	DepreciationAmortizationAndDepletionUtilityPlantInService Total in Service (18 thru 21)	96,962,084	96,962,084
23	DepreciationAmortizationAndDepletionUtilityPlantLeasedToOthersAbstract Leased to Others
24	DepreciationUtilityPlantLeasedToOthers Depreciation
25	AmortizationAndDepletionUtilityPlantLeasedToOthers Amortization and Depletion
26	DepreciationAmortizationAndDepletionUtilityPlantLeasedToOthers Total Leased to Others (24 & 25)
27	DepreciationAndAmortizationUtilityPlantHeldForFutureUseAbstract Held for Future Use
28	DepreciationUtilityPlantHeldForFutureUse Depreciation
29	AmortizationUtilityPlantHeldForFutureUse Amortization
30	DepreciationAndAmortizationUtilityPlantHeldForFutureUse Total Held for Future Use (28 & 29)
31	AbandonmentOfLeases Abandonment of Leases (Natural Gas)
32	AmortizationOfPlantAcquisitionAdjustment Amortization of Plant Acquisition Adjustment
33	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility Total Accum Prov (equals 14) (22,26,30,31,32)	96,962,084	96,962,084

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

NUCLEAR FUEL MATERIALS (Account 120.1 through 120.6 and 157)
Report below the costs incurred for nuclear fuel materials in process of fabrication, on hand, in reactor, and in cooling; owned by the respondent. If the nuclear fuel stock is obtained under leasing arrangements, attach a statement showing the amount of nuclear fuel leased, the quantity used and quantity on hand, and the costs incurred under such leasing arrangements.
Line No.	Description of item (a)	Balance Beginning of Year (b)	Changes during Year Additions (c)	Changes during Year Amortization (d)	Changes during Year Other Reductions (Explain in a footnote) (e)	Balance End of Year (f)
1	Nuclear Fuel in process of Refinement, Conv, Enrichment & Fab (120.1)
2	Fabrication
3	Nuclear Materials
4	Allowance for Funds Used during Construction
5	(Other Overhead Construction Costs, provide details in footnote)
6	SUBTOTAL (Total 2 thru 5)
7	Nuclear Fuel Materials and Assemblies
8	In Stock (120.2)
9	In Reactor (120.3)
10	SUBTOTAL (Total 8 & 9)
11	Spent Nuclear Fuel (120.4)
12	Nuclear Fuel Under Capital Leases (120.6)
13	(Less) Accum Prov for Amortization of Nuclear Fuel Assem (120.5)
14	TOTAL Nuclear Fuel Stock (Total 6, 10, 11, 12, less 13)
15	Estimated Net Salvage Value of Nuclear Materials in Line 9
16	Estimated Net Salvage Value of Nuclear Materials in Line 11
17	Est Net Salvage Value of Nuclear Materials in Chemical Processing
18	Nuclear Materials held for Sale (157)
19	Uranium
20	Plutonium
21	Other (Provide details in footnote)
22	TOTAL Nuclear Materials held for Sale (Total 19, 20, and 21)

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC PLANT IN SERVICE (Account 101, 102, 103 and 106)
Report below the original cost of electric plant in service according to the prescribed accounts. In addition to Account 101, Electric Plant in Service (Classified), this page and the next include Account 102, Electric Plant Purchased or Sold; Account 103, Experimental Electric Plant Unclassified; and Account 106, Completed Construction Not Classified-Electric. Include in column (c) or (d), as appropriate, corrections of additions and retirements for the current or preceding year. For revisions to the amount of initial asset retirement costs capitalized, included by primary plant account, increases in column (c) additions and reductions in column (e) adjustments. Enclose in parentheses credit adjustments of plant accounts to indicate the negative effect of such accounts. Classify Account 106 according to prescribed accounts, on an estimated basis if necessary, and include the entries in column (c). Also to be included in column (c) are entries for reversals of tentative distributions of the prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary accounts at the end of the year, include in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to the account for accumulated depreciation provision. Include also in column (d) distributions of these tentative classifications in columns (c) and (d), including the reversals of the prior years tentative account distributions of these amounts. Careful observance of the above instructions and the texts of Accounts 101 and 106 will avoid serious omissions of the reported amount of respondent’s plant actually in service at end of year. Show in column (f) reclassifications or transfers within utility plant accounts. Include also in column (f) the additions or reductions of primary account classifications arising from distribution of amounts initially recorded in Account 102, include in column (e) the amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (f) only the offset to the debits or credits distributed in column (f) to primary account classifications. For Account 399, state the nature and use of plant included in this account and if substantial in amount submit a supplementary statement showing subaccount classification of such plant conforming to the requirement of these pages. For each amount comprising the reported balance and changes in Account 102, state the property purchased or sold, name of vendor or purchase, and date of transaction. If proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give also date.
Line No.	Account (a)	Balance Beginning of Year (b)	Additions (c)	Retirements (d)	Adjustments (e)	Transfers (f)	Balance at End of Year (g)
1	1. INTANGIBLE PLANT
2	(301) Organization
3	(302) Franchise and Consents	781					781
4	(303) Miscellaneous Intangible Plant	6,911,953	1,788,191	841,839			7,858,305
5	TOTAL Intangible Plant (Enter Total of lines 2, 3, and 4)	6,912,734	1,788,191	841,839			7,859,086
6	2. PRODUCTION PLANT
7	A. Steam Production Plant
8	(310) Land and Land Rights
9	(311) Structures and Improvements
10	(312) Boiler Plant Equipment
11	(313) Engines and Engine-Driven Generators
12	(314) Turbogenerator Units
13	(315) Accessory Electric Equipment
14	(316) Misc. Power Plant Equipment
15	(317) Asset Retirement Costs for Steam Production
16	TOTAL Steam Production Plant (Enter Total of lines 8 thru 15)
17	B. Nuclear Production Plant
18	(320) Land and Land Rights
19	(321) Structures and Improvements
20	(322) Reactor Plant Equipment
21	(323) Turbogenerator Units
22	(324) Accessory Electric Equipment
23	(325) Misc. Power Plant Equipment
24	(326) Asset Retirement Costs for Nuclear Production
25	TOTAL Nuclear Production Plant (Enter Total of lines 18 thru 24)
26	C. Hydraulic Production Plant
27	(330) Land and Land Rights
28	(331) Structures and Improvements
29	(332) Reservoirs, Dams, and Waterways
30	(333) Water Wheels, Turbines, and Generators
31	(334) Accessory Electric Equipment
32	(335) Misc. Power Plant Equipment
33	(336) Roads, Railroads, and Bridges
34	(337) Asset Retirement Costs for Hydraulic Production
35	TOTAL Hydraulic Production Plant (Enter Total of lines 27 thru 34)
36	D. Other Production Plant
37	(340) Land and Land Rights
38	(341) Structures and Improvements
39	(342) Fuel Holders, Products, and Accessories
40	(343) Prime Movers
41	(344) Generators
42	(345) Accessory Electric Equipment
43	(346) Misc. Power Plant Equipment
44	(347) Asset Retirement Costs for Other Production
44.1	(348) Energy Storage Equipment - Production
45	TOTAL Other Prod. Plant (Enter Total of lines 37 thru 44)
46	TOTAL Prod. Plant (Enter Total of lines 16, 25, 35, and 45)
47	3. Transmission Plant
48	(350) Land and Land Rights	802,205	180,894				983,099
48.1	(351) Energy Storage Equipment - Transmission
49	(352) Structures and Improvements	1,399,805	93,702	91,760		79,424	1,322,323
50	(353) Station Equipment	34,039,173	2,115,396	465,196			35,689,373
51	(354) Towers and Fixtures	760,810	2,472,903	3,176			3,230,537
52	(355) Poles and Fixtures	6,174,162	1,352,516	9,955			7,516,723
53	(356) Overhead Conductors and Devices	4,141,023	963,532	31,941			5,072,614
54	(357) Underground Conduit
55	(358) Underground Conductors and Devices
56	(359) Roads and Trails
57	(359.1) Asset Retirement Costs for Transmission Plant
58	TOTAL Transmission Plant (Enter Total of lines 48 thru 57)	47,317,178	7,178,943	602,028		79,424	53,814,669
59	4. Distribution Plant
60	(360) Land and Land Rights	3,474,905	106,389			187,481	3,768,775
61	(361) Structures and Improvements	6,503,807					6,503,807
62	(362) Station Equipment	35,573,222	128,608	133,955			35,567,875
63	(363) Energy Storage Equipment – Distribution
64	(364) Poles, Towers, and Fixtures	32,021,152	1,728,865	80,245			33,669,772
65	(365) Overhead Conductors and Devices	46,763,496	3,372,975	196,722			49,939,749
66	(366) Underground Conduit	7,553,434	229,535	176			7,782,793
67	(367) Underground Conductors and Devices	10,428,518	741,871	29,771			11,140,618
68	(368) Line Transformers	30,145,040	1,532,239	278,622			31,398,657
69	(369) Services	13,874,813	485,467	47,181			14,313,099
70	(370) Meters	6,548,332	384,428	218,961			6,713,799
71	(371) Installations on Customer Premises	2,870,854	176,598	103,193			2,944,259
72	(372) Leased Property on Customer Premises
73	(373) Street Lighting and Signal Systems	9,075,870	382,200	43,571			9,414,499
74	(374) Asset Retirement Costs for Distribution Plant
75	TOTAL Distribution Plant (Enter Total of lines 60 thru 74)	204,833,443	9,269,175	1,132,397		187,481	213,157,702
76	5. REGIONAL TRANSMISSION AND MARKET OPERATION PLANT
77	(380) Land and Land Rights
78	(381) Structures and Improvements
79	(382) Computer Hardware
80	(383) Computer Software
81	(384) Communication Equipment
82	(385) Miscellaneous Regional Transmission and Market Operation Plant
83	(386) Asset Retirement Costs for Regional Transmission and Market Oper
84	TOTAL Transmission and Market Operation Plant (Total lines 77 thru 83)
85	6. General Plant
86	(389) Land and Land Rights	315,712					315,712
87	(390) Structures and Improvements	4,903,712		15			4,903,697
88	(391) Office Furniture and Equipment	153,628					153,628
89	(392) Transportation Equipment
90	(393) Stores Equipment	31,797					31,797
91	(394) Tools, Shop and Garage Equipment	1,573,331	83,483				1,656,814
92	(395) Laboratory Equipment	25,365					25,365
93	(396) Power Operated Equipment
94	(397) Communication Equipment	2,667,530	2,135,168				4,802,698
95	(398) Miscellaneous Equipment	195,683	57			79,424	275,164
96	SUBTOTAL (Enter Total of lines 86 thru 95)	9,866,758	2,218,708	15		79,424	12,164,875
97	(399) Other Tangible Property
98	(399.1) Asset Retirement Costs for General Plant	32,875	89,133				122,008
99	TOTAL General Plant (Enter Total of lines 96, 97, and 98)	9,899,633	2,307,841	15		79,424	12,286,883
100	TOTAL (Accounts 101 and 106)	268,962,988	20,544,150	2,576,279		187,481	287,118,340
101	(102) Electric Plant Purchased (See Instr. 8)
102	(Less) (102) Electric Plant Sold (See Instr. 8)
103	(103) Experimental Plant Unclassified
104	TOTAL Electric Plant in Service (Enter Total of lines 100 thru 103)	268,962,988	20,544,150	2,576,279		187,481	287,118,340

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC PLANT LEASED TO OTHERS (Account 104)
Line No.	LesseeName Name of Lessee (a)	IndicationOfAssociatedCompany * (Designation of Associated Company) (b)	LeaseDescription Description of Property Leased (c)	CommissionAuthorization Commission Authorization (d)	ExpirationDateOfLease Expiration Date of Lease (e)	ElectricPlantLeasedToOthers Balance at End of Year (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC PLANT HELD FOR FUTURE USE (Account 105)
Report separately each property held for future use at end of the year having an original cost of $250,000 or more. Group other items of property held for future use. For property having an original cost of $250,000 or more previously used in utility operations, now held for future use, give in column (a), in addition to other required information, the date that utility use of such property was discontinued, and the date the original cost was transferred to Account 105.
Line No.	ElectricPlantHeldForFutureUseDescription Description and Location of Property (a)	ElectricPlantPropertyClassifiedAsHeldForFutureUseOriginalDate Date Originally Included in This Account (b)	ElectricPlantPropertyClassifiedAsHeldForFutureUseExpectedUseInServiceDate Date Expected to be used in Utility Service (c)	ElectricPlantHeldForFutureUse Balance at End of Year (d)
1	Land and Rights:
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21	Other Property:
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

CONSTRUCTION WORK IN PROGRESS - - ELECTRIC (Account 107)
Report below descriptions and balances at end of year of projects in process of construction (107). Show items relating to "research, development, and demonstration" projects last, under a caption Research, Development, and Demonstrating (see Account 107 of the Uniform System of Accounts). Minor projects (5% of the Balance End of the Year for Account 107 or $1,000,000, whichever is less) may be grouped.
Line No.	ConstructionWorkInProgressProjectDescription Description of Project (a)	ConstructionWorkInProgress Construction work in progress - Electric (Account 107) (b)
1	Ed-Ci-Kgpco-D Ast Imp	1,442,356
2	EdensRidge-Add Xmfr Sta Work	3,641,449
3	Kingsport SC Land Purchase	4,337,231
4	Kingsport T Work	3,702,178
5	Lovedale Station Work	3,680,398
6	Other Minor Projects under $1,000,000	7,245,610
43	Total	24,049,222

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED PROVISION FOR DEPRECIATION OF ELECTRIC UTILITY PLANT (Account 108)
Explain in a footnote any important adjustments during year. Explain in a footnote any difference between the amount for book cost of plant retired, Line 12, column (c), and that reported for electric plant in service, page 204, column (d), excluding retirements of non-depreciable property. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been recorded and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize the book cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropriate functional classifications. Show separately interest credits under a sinking fund or similar method of depreciation accounting.
Line No.	Item (a)	Total (c + d + e) (b)	Electric Plant in Service (c)	Electric Plant Held for Future Use (d)	Electric Plant Leased To Others (e)
Section A. Balances and Changes During Year
1	AccumulatedProvisionForDepreciationOfElectricUtilityPlant Balance Beginning of Year	89,027,160	89,027,160
2	Depreciation Provisions for Year, Charged to
3	DepreciationExpenseExcludingAdjustments (403) Depreciation Expense	8,241,261	8,241,261
4	DepreciationExpenseForAssetRetirementCosts (403.1) Depreciation Expense for Asset Retirement Costs	4,696	4,696
5	ExpensesOfElectricPlantLeasedToOthers (413) Exp. of Elec. Plt. Leas. to Others
6	TransportationExpensesClearing Transportation Expenses-Clearing
7	OtherClearingAccounts Other Clearing Accounts
8	OtherAccounts Other Accounts (Specify, details in footnote):
9.1	Other Accounts (Specify, details in footnote):
10	DepreciationProvision TOTAL Deprec. Prov for Year (Enter Total of lines 3 thru 9)	8,245,957	8,245,957
11	Net Charges for Plant Retired:
12	BookCostOfRetiredPlant Book Cost of Plant Retired	1,734,440	1,734,440
13	CostOfRemovalOfPlant Cost of Removal	2,326,440	(a) 2,326,440
14	SalvageValueOfRetiredPlant Salvage (Credit)	373,437	(b) 373,437
15	NetChargesForRetiredPlant TOTAL Net Chrgs. for Plant Ret. (Enter Total of lines 12 thru 14)	3,687,443	3,687,443
16	OtherAdjustmentsToAccumulatedDepreciation Other Debit or Cr. Items (Describe, details in footnote):
17.1	Other Debit or Cr. Items (Describe, details in footnote):
18	BookCostOfAssetRetirementCosts Book Cost or Asset Retirement Costs Retired
19	AccumulatedProvisionForDepreciationOfElectricUtilityPlant Balance End of Year (Enter Totals of lines 1, 10, 15, 16, and 18)	93,585,674	93,585,674
Section B. Balances at End of Year According to Functional Classification
20	AccumulatedDepreciationSteamProduction Steam Production
21	AccumulatedDepreciationNuclearProduction Nuclear Production
22	AccumulatedDepreciationHydraulicProductionConventional Hydraulic Production-Conventional
23	AccumulatedDepreciationHydraulicProductionPumpedStorage Hydraulic Production-Pumped Storage
24	AccumulatedDepreciationOtherProduction Other Production
25	AccumulatedDepreciationTransmission Transmission	12,694,534	12,694,534
26	AccumulatedDepreciationDistribution Distribution	78,535,961	78,535,961
27	AccumulatedDepreciationRegionalTransmissionAndMarketOperation Regional Transmission and Market Operation
28	AccumulatedDepreciationGeneral General	2,355,179	2,355,179
29	AccumulatedProvisionForDepreciationOfElectricUtilityPlant TOTAL (Enter Total of lines 20 thru 28)	93,585,674	93,585,674

FOOTNOTE DATA

(a) Concept: CostOfRemovalOfPlant

Includes $1,719,000 of removal cost in retirement work in progress (RWIP).

(b) Concept: SalvageValueOfRetiredPlant

Includes ($361,305) of salvage in retirement work in progress (RWIP).

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.1)
Report below investments in Account 123.1, Investments in Subsidiary Companies. Provide a subheading for each company and list thereunder the information called for below. Sub-TOTAL by company and give a TOTAL in columns (e), (f), (g) and (h). (a) Investment in Securities - List and describe each security owned. For bonds give also principal amount, date of issue, maturity, and interest rate. (b) Investment Advances - Report separately the amounts of loans or investment advances which are subject to repayment, but which are not subject to current settlement. With respect to each advance show whether the advance is a note or open account. List each note giving date of issuance, maturity date, and specifying whether note is a renewal. Report separately the equity in undistributed subsidiary earnings since acquisition. The TOTAL in column (e) should equal the amount entered for Account 418.1. For any securities, notes, or accounts that were pledged designate such securities, notes, or accounts in a footnote, and state the name of pledgee and purpose of the pledge. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and give name of Commission, date of authorization, and case or docket number. Report column (f) interest and dividend revenues from investments, including such revenues from securities disposed of during the year. In column (h) report for each investment disposed of during the year, the gain or loss represented by the difference between cost of the investment (or the other amount at which carried in the books of account if different from cost) and the selling price thereof, not including interest adjustment includible in column (f). Report on Line 42, column (a) the TOTAL cost of Account 123.1.
Line No.	DescriptionOfInvestmentsInSubsidiaryCompanies Description of Investment (a)	DateOfAcquisitionInvestmentsInSubsidiaryCompanies Date Acquired (b)	DateOfMaturityInvestmentsInSubsidiaryCompanies Date of Maturity (c)	InvestmentInSubsidiaryCompanies Amount of Investment at Beginning of Year (d)	EquityInEarningsOfSubsidiaryCompanies Equity in Subsidiary Earnings of Year (e)	InterestAndDividendRevenueFromInvestments Revenues for Year (f)	InvestmentInSubsidiaryCompanies Amount of Investment at End of Year (g)	InvestmentGainLossOnDisplosal Gain or Loss from Investment Disposed of (h)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42	Total Cost of Account 123.1 $		Total

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

MATERIALS AND SUPPLIES
For Account 154, report the amount of plant materials and operating supplies under the primary functional classifications as indicated in column (a); estimates of amounts by function are acceptable. In column (d), designate the department or departments which use the class of material. Give an explanation of important inventory adjustments during the year (in a footnote) showing general classes of material and supplies and the various accounts (operating expenses, clearing accounts, plant, etc.) affected debited or credited. Show separately debit or credits to stores expense clearing, if applicable.
Line No.	Account (a)	Balance Beginning of Year (b)	Balance End of Year (c)	Department or Departments which Use Material (d)
1	Fuel Stock (Account 151)
2	Fuel Stock Expenses Undistributed (Account 152)
3	Residuals and Extracted Products (Account 153)
4	Plant Materials and Operating Supplies (Account 154)
5	Assigned to - Construction (Estimated)	449,518	928,505	Electric
6	Assigned to - Operations and Maintenance
7	Production Plant (Estimated)
8	Transmission Plant (Estimated)			Electric
9	Distribution Plant (Estimated)	36,675	29,101	Electric
10	Regional Transmission and Market Operation Plant (Estimated)
11	Assigned to - Other (provide details in footnote)	(a) 2,083	2,356	Electric
12	TOTAL Account 154 (Enter Total of lines 5 thru 11)	488,276	959,962
13	Merchandise (Account 155)
14	Other Materials and Supplies (Account 156)
15	Nuclear Materials Held for Sale (Account 157) (Not applic to Gas Util)
16	Stores Expense Undistributed (Account 163)
17
18
19
20	TOTAL Materials and Supplies	488,276	959,962

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: PlantMaterialsAndOperatingSuppliesOther

Assigned to - Other includes customer account, administrative and general expenses.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Allowances (Accounts 158.1 and 158.2)
Report below the particulars (details) called for concerning allowances. Report all acquisitions of allowances at cost. Report allowances in accordance with a weighted average cost allocation method and other accounting as prescribed by General Instruction No. 21 in the Uniform System of Accounts. Report the allowances transactions by the period they are first eligible for use: the current year’s allowances in columns (b)-(c), allowances for the three succeeding years in columns (d)-(i), starting with the following year, and allowances for the remaining succeeding years in columns (j)-(k). Report on Line 4 the Environmental Protection Agency (EPA) issued allowances. Report withheld portions Lines 36-40. Report on Line 5 allowances returned by the EPA. Report on Line 39 the EPA’s sales of the withheld allowances. Report on Lines 43-46 the net sales proceeds and gains/losses resulting from the EPA’s sale or auction of the withheld allowances. Report on Lines 8-14 the names of vendors/transferors of allowances acquired and identify associated companies (See "associated company" under "Definitions" in the Uniform System of Accounts). Report on Lines 22 - 27 the name of purchasers/ transferees of allowances disposed of and identify associated companies. Report the net costs and benefits of hedging transactions on a separate line under purchases/transfers and sales/transfers. Report on Lines 32-35 and 43-46 the net sales proceeds and gains or losses from allowance sales.
		Current Year		Year One		Year Two		Year Three		Future Years		Totals
Line No.	SO2 Allowances Inventory (Account 158.1) (a)	No. (b)	Amt. (c)	No. (d)	Amt. (e)	No. (f)	Amt. (g)	No. (h)	Amt. (i)	No. (j)	Amt. (k)	No. (l)	Amt. (m)
1	Balance-Beginning of Year
2
3	Acquired During Year:
4	Issued (Less Withheld Allow)
5	Returned by EPA
6
7
8	Purchases/Transfers:
9
10
11
12
13
14
15	Total
16
17	Relinquished During Year:
18	Charges to Account 509
19	Other:
20	Allowances Used
20.1	Allowances Used
21	Cost of Sales/Transfers:
22
23
24
25
26
27
28	Total
29	Balance-End of Year
30
31	Sales:
32	Net Sales Proceeds(Assoc. Co.)
33	Net Sales Proceeds (Other)
34	Gains
35	Losses
	Allowances Withheld (Acct 158.2)
36	Balance-Beginning of Year
37	Add: Withheld by EPA
38	Deduct: Returned by EPA
39	Cost of Sales
40	Balance-End of Year
41
42	Sales
43	Net Sales Proceeds (Assoc. Co.)
44	Net Sales Proceeds (Other)
45	Gains
46	Losses

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Allowances (Accounts 158.1 and 158.2)
Report below the particulars (details) called for concerning allowances. Report all acquisitions of allowances at cost. Report allowances in accordance with a weighted average cost allocation method and other accounting as prescribed by General Instruction No. 21 in the Uniform System of Accounts. Report the allowances transactions by the period they are first eligible for use: the current year’s allowances in columns (b)-(c), allowances for the three succeeding years in columns (d)-(i), starting with the following year, and allowances for the remaining succeeding years in columns (j)-(k). Report on Line 4 the Environmental Protection Agency (EPA) issued allowances. Report withheld portions Lines 36-40. Report on Line 5 allowances returned by the EPA. Report on Line 39 the EPA’s sales of the withheld allowances. Report on Lines 43-46 the net sales proceeds and gains/losses resulting from the EPA’s sale or auction of the withheld allowances. Report on Lines 8-14 the names of vendors/transferors of allowances acquired and identify associated companies (See "associated company" under "Definitions" in the Uniform System of Accounts). Report on Lines 22 - 27 the name of purchasers/ transferees of allowances disposed of and identify associated companies. Report the net costs and benefits of hedging transactions on a separate line under purchases/transfers and sales/transfers. Report on Lines 32-35 and 43-46 the net sales proceeds and gains or losses from allowance sales.
		Current Year		Year One		Year Two		Year Three		Future Years		Totals
Line No.	NOx Allowances Inventory (Account 158.1) (a)	No. (b)	Amt. (c)	No. (d)	Amt. (e)	No. (f)	Amt. (g)	No. (h)	Amt. (i)	No. (j)	Amt. (k)	No. (l)	Amt. (m)
1	Balance-Beginning of Year
2
3	Acquired During Year:
4	Issued (Less Withheld Allow)
5	Returned by EPA
6
7
8	Purchases/Transfers:
9
10
11
12
13
14
15	Total
16
17	Relinquished During Year:
18	Charges to Account 509
19	Other:
20	Allowances Used
20.1	Allowances Used
21	Cost of Sales/Transfers:
22
23
24
25
26
27
28	Total
29	Balance-End of Year
30
31	Sales:
32	Net Sales Proceeds(Assoc. Co.)
33	Net Sales Proceeds (Other)
34	Gains
35	Losses
	Allowances Withheld (Acct 158.2)
36	Balance-Beginning of Year
37	Add: Withheld by EPA
38	Deduct: Returned by EPA
39	Cost of Sales
40	Balance-End of Year
41
42	Sales
43	Net Sales Proceeds (Assoc. Co.)
44	Net Sales Proceeds (Other)
45	Gains
46	Losses

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

EXTRAORDINARY PROPERTY LOSSES (Account 182.1)
				WRITTEN OFF DURING YEAR
Line No.	DescriptionOfExtraordinaryPropertyLoss Description of Extraordinary Loss [Include in the description the date of Commission Authorization to use Acc 182.1 and period of amortization (mo, yr to mo, yr).] (a)	ExtraordinaryPropertyLossesNotYetRecognized Total Amount of Loss (b)	ExtraordinaryPropertyLossesRecognized Losses Recognized During Year (c)	ExtraordinaryPropertyLossesWrittenOffAccountCharged Account Charged (d)	ExtraordinaryPropertyLossesWrittenOff Amount (e)	ExtraordinaryPropertyLosses Balance at End of Year (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
20	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

UNRECOVERED PLANT AND REGULATORY STUDY COSTS (182.2)
				WRITTEN OFF DURING YEAR
Line No.	DescriptionOfUnrecoveredPlantAndRegulatoryStudyCosts Description of Unrecovered Plant and Regulatory Study Costs [Include in the description of costs, the date of COmmission Authorization to use Acc 182.2 and period of amortization (mo, yr to mo, yr)] (a)	UnrecoveredPlantAndRegulatoryStudyCostsNotYetRecognized Total Amount of Charges (b)	UnrecoveredPlantAndRegulatoryStudyCostsRecognized Costs Recognized During Year (c)	UnrecoveredPlantAndRegulatoryStudyCostsWrittenOffAccountCharged Account Charged (d)	UnrecoveredPlantAndRegulatoryStudyCostsWrittenOff Amount (e)	UnrecoveredPlantAndRegulatoryStudyCosts Balance at End of Year (f)
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Transmission Service and Generation Interconnection Study Costs
Report the particulars (details) called for concerning the costs incurred and the reimbursements received for performing transmission service and generator interconnection studies. List each study separately. In column (a) provide the name of the study. In column (b) report the cost incurred to perform the study at the end of period. In column (c) report the account charged with the cost of the study. In column (d) report the amounts received for reimbursement of the study costs at end of period. In column (e) report the account credited with the reimbursement received for performing the study.
Line No.	DescriptionOfStudyPerformed Description (a)	StudyCostsIncurred Costs Incurred During Period (b)	StudyCostsAccountCharged Account Charged (c)	StudyCostsReimbursements Reimbursements Received During the Period (d)	StudyCostsAccountReimbursed Account Credited With Reimbursement (e)
1	Transmission Studies
2	NONE
20	Total
21	Generation Studies
22	None
39	Total
40	Grand Total

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

OTHER REGULATORY ASSETS (Account 182.3)
Report below the particulars (details) called for concerning other regulatory assets, including rate order docket number, if applicable. Minor items (5% of the Balance in Account 182.3 at end of period, or amounts less than $100,000 which ever is less), may be grouped by classes. For Regulatory Assets being amortized, show period of amortization.
				CREDITS
Line No.	DescriptionAndPurposeOfOtherRegulatoryAssets Description and Purpose of Other Regulatory Assets (a)	OtherRegulatoryAssets Balance at Beginning of Current Quarter/Year (b)	IncreaseDecreaseInOtherRegulatoryAssets Debits (c)	OtherRegulatoryAssetsWrittenOffAccountCharged Written off During Quarter/Year Account Charged (d)	OtherRegulatoryAssetsWrittenOffRecovered Written off During the Period Amount (e)	OtherRegulatoryAssets Balance at end of Current Quarter/Year (f)
1	SFAS 109 Deferred FIT	1,676,241	2,191,320	190/236/410	1,560,747	2,306,814
2	SFAS 109 Deferred SIT	7,168,440	2,768,974	190/254/282/283/409/410	729,326	9,208,088
3	SFAS No.112-Post Employment Benefits	257,176		228	26,215	230,961
4	SFAS 158 Employers' Accounting for DefinedBenefit Pension and Other Postretirement Plans	2,416,970	6,251,063	182	3,913,100	4,754,933
5	SFAS 106 Medicare SubsidyAmort 1/2013 - 12/2024	91,595		926	30,532	61,063
6	Rate Case Expenses	370,994	457,066	928	67,038	761,022
7	TN Under-Recovery FPPA RiderTN Case No. 16-00001	12,076,259	32,706,838	555	8,170,171	36,612,926
8	Targeted Reliability Plan andMajor Storms per Docket No 17-00032	5,849,110	803,150	593	2,970,334	3,681,926
9	COVID-19 Deferred Expense	105,726		588/920/921/923	9,827	95,899
10	LSE Formula Rate Defer-Dep	300,457		565	300,457
11	2022 PJM Transmission True-up		67,529			67,529
44	TOTAL	30,312,968	45,245,940		17,777,747	57,781,161

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

MISCELLANEOUS DEFFERED DEBITS (Account 186)
Report below the particulars (details) called for concerning miscellaneous deferred debits. For any deferred debit being amortized, show period of amortization in column (a) Minor item (1% of the Balance at End of Year for Account 186 or amounts less than $100,000, whichever is less) may be grouped by classes.
				CREDITS
Line No.	Description of Miscellaneous Deferred Debits (a)	Balance at Beginning of Year (b)	Debits (c)	Credits Account Charged (d)	Credits Amount (e)	Balance at End of Year (f)
1	Agency Fees	284,535	3,882,382	184/426	3,571,360	595,557
2	Unamortized Credit Line Fees	58,867	13,394	431	22,647	49,614
3	Deferred Expenses
4	Deferred Lease Assets
5	Reclamation Adv - Unamort Disc
6	Trnsrce OU Acctg for Def Asset	16,620	19,077	565	26,554	9,143
7	Minor Items	50		131/146	50
8	2021 PJM Transmission True-up		1,039,473	146/234/253	260,876	778,597
47	Miscellaneous Work in Progress	43,294				84,060
48	Deferred Regulatroy Comm. Expenses (See pages 350 - 351)
49	TOTAL	403,366				1,516,971

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES (Account 190)
Report the information called for below concerning the respondent’s accounting for deferred income taxes. At Other (Specify), include deferrals relating to other income and deductions.
Line No.	DescriptionOfAccumulatedDeferredIncomeTax Description and Location (a)	AccumulatedDeferredIncomeTaxes Balance at Beginning of Year (b)	AccumulatedDeferredIncomeTaxes Balance at End of Year (c)
1	Electric
2	Contributions in Aid of Construction	861,521	900,154
3	Vacation Pay Accruals	66,081	84,730
4	Post Retirement, Incentive Plans & Post Empl. Benefits	79,870	58,799
5	Accrued Pension Expense	632,820	603,130
6	Rate Case Deferred Charges	4,669
7	Other	4,770,312	5,067,956
8	TOTAL Electric (Enter Total of lines 2 thru 7)	4,989,893	5,390,911
9	Gas
15	Other
16	TOTAL Gas (Enter Total of lines 10 thru 15)
17.1	Other (Specify)	(a) 4,087,434	3,659,968
17	Other (Specify)
18	TOTAL (Acct 190) (Total of lines 8, 16 and 17)	9,077,327	9,050,879

Notes

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: AccumulatedDeferredIncomeTaxes


	Notes
Reconciliation of details applicable to Account 190, Line 18, Columns (b) & (c):
Balance at Beginning of Year		$	9,077,327
(Less) Amounts Debited to Acct. 410.1		(2,564,281)
Plus Amounts Credited to Acct. 411.1		2,906,220
(Less) Amounts Debited to Acct. 410.2		(48,230)
Plus Amounts Credited to Acct. 411.2		45,302
(Less) Amounts Debited to Various Accts		(1,254,490)
Plus Amounts Credited to Various Accts		889,031
Balance at End of Year		9,050,879

		Beginning of Year		End of Year
Non-Utility- Acct 190.2		$	34,317	$	31,390
Acc Def State Income taxes		—		—
SFAS 109-Regulatory Assets 190.3 & 190.4		4,053,117		3,628,578
		4,087,434		3,659,968

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

CAPITAL STOCKS (Account 201 and 204)
Report below the particulars (details) called for concerning common and preferred stock at end of year, distinguishing separate series of any general class. Show separate totals for common and preferred stock. If information to meet the stock exchange reporting requirement outlined in column (a) is available from the SEC 10-K Report Form filing, a specific reference to report form (i.e., year and company title) may be reported in column (a) provided the fiscal years for both the 10-K report and this report are compatible. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year. Give details concerning shares of any class and series of stock authorized to be issued by a regulatory commission which have not yet been issued. The identification of each class of preferred stock should show the dividend rate and whether the dividends are cumulative or noncumulative. State in a footnote if any capital stock that has been nominally issued is nominally outstanding at end of year. Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which is pledged, stating name of pledgee and purpose of pledge.
Line No.	Class and Series of Stock and Name of Stock Series (a)	Number of Shares Authorized by Charter (b)	Par or Stated Value per Share (c)	Call Price at End of Year (d)	Outstanding per Bal. Sheet (Total amount outstanding without reduction for amounts held by respondent) Shares (e)	Outstanding per Bal. Sheet (Total amount outstanding without reduction for amounts held by respondent) Amount (f)	Held by Respondent As Reacquired Stock (Acct 217) Shares (g)	Held by Respondent As Reacquired Stock (Acct 217) Cost (h)	Held by Respondent In Sinking and Other Funds Shares (i)	Held by Respondent In Sinking and Other Funds Amount (j)
1	Common Stock (Account 201)
2		500,000			410,000	4,100,000
5	Total	500,000			410,000	4,100,000
6	Preferred Stock (Account 204)
7
8
9
10	Total
1	Capital Stock (Accounts 201 and 204) - Data Conversion
2
3
4
5	Total

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

2023-04-12

Year/Period of Report

End of:

2022

/

Q4

Other Paid-in Capital
1. Report below the balance at the end of the year and the information specified below for the respective other paid-in capital accounts. Provide a subheading for each account and show a total for the account, as well as a total of all accounts for reconciliation with the balance sheet, page 112. Explain changes made in any account during the year and give the accounting entries effecting such change. Donations Received from Stockholders (Account 208) - State amount and briefly explain the origin and purpose of each donation. Reduction in Par or Stated Value of Capital Stock (Account 209) - State amount and briefly explain the capital changes that gave rise to amounts reported under this caption including identification with the class and series of stock to which related. Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210) - Report balance at beginning of year, credits, debits, and balance at end of year with a designation of the nature of each credit and debit identified by the class and series of stock to which related. Miscellaneous Paid-In Capital (Account 211) - Classify amounts included in this account according to captions that, together with brief explanations, disclose the general nature of the transactions that gave rise to the reported amounts.
Line No.	Item (a)	Amount (b)
1	DonationsReceivedFromStockholdersAbstract Donations Received from Stockholders (Account 208)
2	DonationsReceivedFromStockholders Beginning Balance Amount	40,800,000
3.1	IncreasesDecreasesFromSalesOfDonationsReceivedFromStockholders Increases (Decreases) from Sales of Donations Received from Stockholders	15,000,000
4	DonationsReceivedFromStockholders Ending Balance Amount	55,800,000
5	ReductionInParOrStatedValueOfCapitalStockAbstract Reduction in Par or Stated Value of Capital Stock (Account 209)
6	ReductionInParOrStatedValueOfCapitalStock Beginning Balance Amount
7.1	IncreasesDecreasesDueToReductionsInParOrStatedValueOfCapitalStock Increases (Decreases) Due to Reductions in Par or Stated Value of Capital Stock
8	ReductionInParOrStatedValueOfCapitalStock Ending Balance Amount
9	GainOrResaleOrCancellationOfReacquiredCapitalStockAbstract Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210)
10	GainOnResaleOrCancellationOfReacquiredCapitalStock Beginning Balance Amount
11.1	IncreasesDecreasesFromGainOrResaleOrCancellationOfReacquiredCapitalStock Increases (Decreases) from Gain or Resale or Cancellation of Reacquired Capital Stock
12	GainOnResaleOrCancellationOfReacquiredCapitalStock Ending Balance Amount
13	MiscellaneousPaidInCapitalAbstract Miscellaneous Paid-In Capital (Account 211)
14	MiscellaneousPaidInCapital Beginning Balance Amount
15.1	IncreasesDecreasesDueToMiscellaneousPaidInCapital Increases (Decreases) Due to Miscellaneous Paid-In Capital
16	MiscellaneousPaidInCapital Ending Balance Amount
17	OtherPaidInCapitalAbstract Historical Data - Other Paid in Capital
18	OtherPaidInCapitalDetail Beginning Balance Amount
19.1	IncreasesDecreasesInOtherPaidInCapital Increases (Decreases) in Other Paid-In Capital
20	OtherPaidInCapitalDetail Ending Balance Amount
40	OtherPaidInCapital Total	55,800,000

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

CAPITAL STOCK EXPENSE (Account 214)
Report the balance at end of the year of discount on capital stock for each class and series of capital stock. If any change occurred during the year in the balance in respect to any class or series of stock, attach a statement giving particulars (details) of the change. State the reason for any charge-off of capital stock expense and specify the account charged.
Line No.	NameOfClassAndSeriesOfStock Class and Series of Stock (a)	CapitalStockExpense Balance at End of Year (b)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

LONG-TERM DEBT (Account 221, 222, 223 and 224)
Report by Balance Sheet Account the details concerning long-term debt included in Accounts 221, Bonds, 222, Reacquired Bonds, 223, Advances from Associated Companies, and 224, Other Long-Term Debt. For bonds assumed by the respondent, include in column (a) the name of the issuing company as well as a description of the bonds, and in column (b) include the related account number. For Advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate demand notes as such. Include in column (a) names of associated companies from which advances were received, and in column (b) include the related account number. For receivers' certificates, show in column (a) the name of the court and date of court order under which such certificates were issued, and in column (b) include the related account number. In a supplemental statement, give explanatory details for Accounts 223 and 224 of net changes during the year. With respect to long-term advances, show for each company: (a)principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission authorization numbers and dates. If the respondent has pledged any of its long-term debt securities, give particulars (details) in a footnote, including name of the pledgee and purpose of the pledge. If the respondent has any long-term securities that have been nominally issued and are nominally outstanding at end of year, describe such securities in a footnote. If interest expense was incurred during the year on any obligations retired or reacquired before end of year, include such interest expense in column (m). Explain in a footnote any difference between the total of column (m) and the total Account 427, Interest on Long-Term Debt and Account 430, Interest on Debt to Associated Companies. Give details concerning any long-term debt authorized by a regulatory commission but not yet issued.
Line No.	ClassAndSeriesOfObligationCouponRateDescription Class and Series of Obligation, Coupon Rate (For new issue, give commission Authorization numbers and dates) (a)	RelatedAccountNumber Related Account Number (b)	Principal Amount of Debt Issued (c)	LongTermDebtIssuanceExpensePremiumOrDiscount Total Expense, Premium or Discount (d)	LongTermDebtIssuanceExpenses Total Expense (e)	LongTermDebtPremium Total Premium (f)	LongTermDebtDiscount Total Discount (g)	NominalDateOfIssue Nominal Date of Issue (h)	DateOfMaturity Date of Maturity (i)	AmortizationPeriodStartDate AMORTIZATION PERIOD Date From (j)	AmortizationPeriodEndDate AMORTIZATION PERIOD Date To (k)	Outstanding (Total amount outstanding without reduction for amounts held by respondent) (l)	Interest for Year Amount (m)
1	Bonds (Account 221)
2	None
3	Subtotal
4	Reacquired Bonds (Account 222)
5	None
6	Subtotal
7	Advances from Associated Companies (Account 223)
8	Notes Payable to Parent -AEP Company ,Inc Interest Rate: 3.42%		20,000,000					01/17/2017	02/01/2027	01/17/2017	02/01/2027	20,000,000	684,000
9	Note Payable to parent - AEP Company, Inc Interest Rate: 3.23%		15,000,000					01/25/2022	02/01/2042	01/25/2022	02/01/2042	15,000,000	452,200
10	Note Payable to parent - AEP Company, Inc Interest Rate: 4.65%		5,000,000					08/05/2022	08/01/2032	08/05/2022	08/01/2032	5,000,000	94,292
11	Notes Payable to Parent -AEP Company ,Inc Interest Rate: 3.19%		10,000,000					09/29/2017	09/29/2027	09/29/2017	09/29/2027	10,000,000	319,000
12	Notes Payable to Parent -AEP Company ,Inc Interest Rate: 3.35%		9,000,000					06/19/2019	06/15/2029	06/19/2019	06/15/2029	9,000,000	301,500
13	Note Payable to parent - AEP Company, Inc Interest Rate: 2.84%		26,000,000					01/10/2020	01/10/2040	01/10/2020	01/10/2040	26,000,000	738,400
14	Subtotal		85,000,000									85,000,000	(a) 2,589,392
15	Other Long Term Debt (Account 224)
16
17
18
19	Subtotal
33	TOTAL		85,000,000									85,000,000	2,589,392

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: InterestExpenseDebtAdvancesFromAssociatedCompanies

The difference between the total on this schedule and account 430 is due to interest on short-term advances from the Corporate Borrowing Program.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES
Report the reconciliation of reported net income for the year with taxable income used in computing Federal income tax accruals and show computation of such tax accruals. Include in the reconciliation, as far as practicable, the same detail as furnished on Schedule M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. Indicate clearly the nature of each reconciling amount. If the utility is a member of a group which files a consolidated Federal tax return, reconcile reported net income with taxable net income as if a separate return were to be field, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State names of group member, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated tax among the group members. A substitute page, designed to meet a particular need of a company, may be used as Long as the data is consistent and meets the requirements of the above instructions. For electronic reporting purposes complete Line 27 and provide the substitute Page in the context of a footnote.
Line No.	Particulars (Details) (a)	Amount (b)
1	Net Income for the Year (Page 117)	7,455,946
2	Reconciling Items for the Year
3
4	Taxable Income Not Reported on Books
5
6
7
8
9	Deductions Recorded on Books Not Deducted for Return
10
11
12
13
14	Income Recorded on Books Not Included in Return
15
16
17
18
19	Deductions on Return Not Charged Against Book Income
20
21
22
23
24
25
26
27	Federal Tax Net Income	(a) 23,634,049
28	Show Computation of Tax:
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: FederalTaxNetIncome


			In (000's)
Net Income for the year per Page 117			7,456
Federal Income Taxes			(1,742)
State Income Taxes			(1,640)
Pretax Book Income			4,074

Increase (Decrease) in Taxable Income resulting from:
Allowance for Funds Used During Construction and Other Differences Between Items Capitalized for Books and Expensed for Tax			(49)
Tax Accruals and Deferrals			459
Excess Tax Vs Book Depreciation			1,889
Percent Repair Allowance			(4,871)
Pension Expenses (Net)			331
Removal Costs			(1,957)
SFAS 106 - Post Retirement Benefit Expense Accrued/Funded (Net)			(291)
Vacation Pay (Net)			(10)
Provision for Revenue Refunds			(254)
Charitable Contribution Carryforward			(72)
Deferred Storm Damage			2,167
Accrued Companywide Incentive Plan			(40)
Book Accruals and Deferrals			(24,537)
Other (Net)			(475)

Federal Taxable Income before State Income Taxes			(23,636)
Less: State Income Taxes			0

Federal Tax Net Income Estimated Current Year Taxable Income			(23,636)

Computation of Tax *
Federal Income Tax on Current Year Taxable Income (Separate Return Basis) at the Statutory Rate of 21%			(4,964)
Tax Credit C/F			2
NOL Reclass To/From Deferred Tax Asset			652
R&D Credit			1

Estimated Tax Currently Payable			(5,619)
Adjustments of Prior Year's Accruals (Net)			(242)
Estimated Current Federal Income Taxes (Net)			(5,861)


FOOTNOTE DATA

INSTRUCTION 2.

* The tax computation above represents an estimate of the Company's allocated portion of the System consolidated Federal income tax. The computation of actual 2022 System Federal income taxes will not be available until the consolidated Federal income tax return is completed and filed by October 2023. The actual allocation of the System consolidated Federal income tax to the members of the consolidated group will not be available until after the consolidated Federal income tax return is filed.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TAXES ACCRUED, PREPAID AND CHARGES DURING YEAR
Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the actual, or estimated amounts of such taxes are known, show the amounts in a footnote and designate whether estimated or actual amounts. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes.) Enter the amounts in both columns (g) and (h). The balancing of this page is not affected by the inclusion of these taxes. Include in column (g) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b)amounts credited to proportions of prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in column (d). Enter all adjustments of the accrued and prepaid tax accounts in column (i) and explain each adjustment in a foot- note. Designate debit adjustments by parentheses. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such taxes to the taxing authority. Report in columns (l) through (o) how the taxes were distributed. Report in column (o) only the amounts charged to Accounts 408.1 and 409.1 pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 409.1 pertaining to other utility departments and amounts charged to Accounts 408.2 and 409.2. Also shown in column (o) the taxes charged to utility plant or other balance sheet accounts. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
					BALANCE AT BEGINNING OF YEAR					BALANCE AT END OF YEAR		DISTRIBUTION OF TAXES CHARGED
Line No.	DescriptionOfTaxesAccruedPrepaidAndCharged Kind of Tax (See Instruction 5) (a)	TypeOfTax Type of Tax (b)	TaxJurisdiction State (c)	TaxYear Tax Year (d)	TaxesAccrued Taxes Accrued (Account 236) (e)	PrepaidTaxes Prepaid Taxes (Include in Account 165) (f)	TaxesCharged Taxes Charged During Year (g)	TaxesPaid Taxes Paid During Year (h)	TaxAdjustments Adjustments (i)	TaxesAccrued Taxes Accrued (Account 236) (j)	PrepaidTaxes Prepaid Taxes (Included in Account 165) (k)	TaxesAccruedPrepaidAndCharged Electric (Account 408.1, 409.1) (l)	IncomeTaxesExtraordinaryItems Extraordinary Items (Account 409.3) (m)	AdjustmentsToRetainedEarnings Adjustment to Ret. Earnings (Account 439) (n)	TaxesIncurredOther Other (o)
1	Federal Tax	Federal Tax			2,849,056	0	5,860,652	8,871,708		162,000	0	5,596,578			264,074
2					0	0				0	0
3	Subtotal Federal Tax				2,849,056	0	5,860,652	8,871,708	0	162,000	0	5,596,578	0	0	264,074
4	Subtotal State Tax				0	0	0	0	0	0	0	0	0	0	0
5	Local Tax	Local Tax		2019	4,213	0				4,213	0
6	Local Tax	Local Tax	TN	2020	0	0		0		0	0	0
7	Local Tax	Local Tax	TN	2021	378,984	0	0	378,984		0	0	0
8	Local Tax	Local Tax	TN	2022	0	0	4,407,879	3,808,375		599,504	0	4,407,879
9	Subtotal Local Tax				374,771	0	4,407,879	4,187,359	0	595,291	0	4,407,879	0	0	0
10	Other Taxes	Other Taxes	TN	2021	0	0	118,000	118,000		0	0	0			118,000
11	Subtotal Other Tax				0	0	118,000	118,000	0	0	0	0	0	0	118,000
12	Property Tax	Property Tax	TN	2020	0	0	0	0		0	0	0
13	Property Tax	Property Tax	TN	2021	1,721,330	0	130,902	1,590,428		0	0	130,902			0
14	Property Tax	Property Tax	VA	2022	0	0	1,807,000			1,807,000	0	1,770,616			36,384
15	Subtotal Property Tax				1,721,330	0	1,676,098	1,590,428	0	1,807,000	0	1,639,714	0	0	36,384
16	State Tax	Real Estate Tax	TN	2021		2,024,491	2,024,491	0		0		2,024,491
17	State Tax	Real Estate Tax	TN	2022		45,284	2,541,259	4,507,280		0	2,011,305	2,011,305			529,954
18	State Tax	Real Estate Tax	TN	2023				6,399		0	6,399
19	Subtotal Real Estate Tax				0	2,069,775	4,565,750	4,513,679	0	0	2,017,704	4,035,796	0	0	529,954
20	UNEMPLOYMENT 2022	Unemployment Tax			564	0	4,939	2,459	0	3,044	0	3,559			1,380
21	STATE UNEMPLOYMENT 2022	Unemployment Tax	TN		11	0	36	41	0	6	0	36			0
22	Subtotal Unemployment Tax				575	0	4,975	2,500	0	3,050	0	3,595	0	0	1,380
23	Sales and Use	Sales And Use Tax	TN	2012		0				0
24	Sales and Use	Sales And Use Tax	TN	2013		0				0
25	Sales and Use	Sales And Use Tax	TN	2014		0				0
26	Sales and Use	Sales And Use Tax	TN	2020	0	0	4,039	4,039		0	0	3,468			571
27	Sales and Use	Sales And Use Tax	TN	2021	4,100	0	2,179	1,921		0	0	388			1,791
28	Sales and Use	Sales And Use Tax	TN	2022	0	0	44,249	37,158		7,091	0	6,063			50,312
29	Sales and Use	Sales And Use Tax	VA	2020	0	0	0	0		0	0				0
30	Sales and Use	Sales And Use Tax	VA	2021	4,214	0	2,973	1,241		0	0				2,973
31	Sales and Use	Sales And Use Tax	VA	2022	0	0	41,762	37,954		3,808					41,762
32	Subtotal Sales And Use Tax				8,314	0	84,898	82,313	0	10,899	0	2,983	0	0	87,881
33	Income tax	Income Tax	MULTI	2019	4,213	0				4,213	0
34	Income tax	Income Tax	TN	2017	3	0				3	0
35	Income tax	Income Tax	TN	2019	58,922	0				58,922	0
36	Income tax	Income Tax	TN	2020	77,635	0	0			77,635	0	0			0
37	Income tax	Income Tax	TN	2021	13,973	0	0			13,973	0
38	Income tax	Income Tax	WV	2017	2	0				2	0
39	Income tax	Income Tax	WV	2018	3	0				3	0
40	Income tax	Income Tax	WV	2020	1	0				1	0
41	Income tax	Income Tax	WV	2021	25	0	0	25		0	0	0
42	Income tax	Income Tax	TN	2022	0	0	3,255			3,255	0	28,911			32,166
43	Income tax	Income Tax	OK	2021	0	0		100		100
44	Subtotal Income Tax				499	0	3,255	75	0	3,679	0	28,911	0	0	32,166
45	Subtotal Excise Tax				0	0	0	0	0	0	0	0	0	0	0
46	Subtotal Fuel Tax				0	0	0	0	0	0	0	0	0	0	0
47	Subtotal Federal Insurance Tax				0	0	0	0	0	0	0	0	0	0	0
48	Franchise Tax	Franchise Tax	OK	2018	100	0				100	0
49	Franchise Tax	Franchise Tax	TN	2017	26,037	0				26,037	0
50	Franchise Tax	Franchise Tax	TN	2018	25,642	0				25,642	0
51	Franchise Tax	Franchise Tax	TN	2019	11,165	0		0		11,165	0
52	Franchise Tax	Franchise Tax	TN	2020	11,916	0	0	0		11,916	0	0
53	Franchise Tax	Franchise Tax	TN	2021	57,684	0	6,400	128,502	1	64,419	0	6,399
54	Franchise Tax	Franchise Tax	UT	2018	300	0				300	0
55	Franchise Tax	Franchise Tax	UT	2019	300	0				300	0
56	Franchise Tax	Franchise Tax	TN	2022			473,483	356,800	0	116,683	0	473,483
57	Subtotal Franchise Tax				17,176	0	479,883	485,302	1	22,596	0	479,882	0	0	0
58	Subtotal Miscellaneous Other Tax				0	0	0	0	0	0	0	0	0	0	0
59	Subtotal Other Federal Tax				0	0	0	0	0	0	0	0	0	0	0
60	Other State	Other State Tax	TN	2020	0	0				0	0	0			0
61	Other State	Other State Tax	TN	2021	0	0				0	0	0			0
62	Other State	Other State Tax	OH	2022	0	0	4	4		0	0	4
63	Subtotal Other State Tax				0	0	4	4	0	0	0	4	0	0	0
64	Subtotal Other Property Tax				0	0	0	0	0	0	0	0	0	0	0
65	Subtotal Other Use Tax				0	0	0	0	0	0	0	0	0	0	0
66	Subtotal Other Advalorem Tax				0	0	0	0	0	0	0	0	0	0	0
67	Subtotal Other License And Fees Tax				0	0	0	0	0	0	0	0	0	0	0
68	FICA 2022	Payroll Tax			43,905	0	411,521	510,454	91,318	36,290	0	188,611			222,911
69	2360104 FICA	Payroll Tax			0	0	0	0	0	0	0	0			0
70	2360105 FICA CARES ACT	Payroll Tax			90,991	0	0	0	90,991	0	0	0			0
71	Subtotal Payroll Tax				134,896	0	411,521	510,454	327	36,290	0	188,611	0	0	222,911
72	Subtotal Advalorem Tax				0	0	0	0	0	0	0	0	0	0	0
73	Subtotal Other Allocated Tax				0	0	0	0	0	0	0	0	0	0	0
74	Subtotal Severance Tax				0	0	0	0	0	0	0	0	0	0	0
75	Subtotal Penalty Tax				0	0	0	0	0	0	0	0	0	0	0
76	Subtotal Other Taxes And Fees				0	0	0	0	0	0	0	0	0	0	0
40	TOTAL				626,845	2,069,775	5,885,101	2,618,256	326	2,588,255	2,017,704	5,184,831	0	0	700,270

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INVESTMENT TAX CREDITS (Account 255)
Report below information applicable to Account 255. Where appropriate, segregate the balances and transactions by utility and nonutility operations. Explain by footnote any correction adjustments to the account balance shown in column (g). Include in column (i) the average period over which the tax credits are amortized.
			Deferred for Year		Allocations to Current Year's Income
Line No.	Account Subdivisions (a)	Balance at Beginning of Year (b)	Account No. (c)	Amount (d)	Account No. (e)	Amount (f)	Adjustments (g)	Balance at End of Year (h)	Average Period of Allocation to Income (i)	ADJUSTMENT EXPLANATION (j)
1	Electric Utility
2	3%				411.4
3	4%				411.4
4	7%				411.4
5	10%		411.1		411.4				43 Years
6	State DITC		411.1		411.4
7	30				411.4
8	TOTAL Electric (Enter Total of lines 2 thru 7)
9	Other (List separately and show 3%, 4%, 7%, 10% and TOTAL)
10										`
47	OTHER TOTAL
48	GRAND TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

OTHER DEFERRED CREDITS (Account 253)
Report below the particulars (details) called for concerning other deferred credits. For any deferred credit being amortized, show the period of amortization. Minor items (5% of the Balance End of Year for Account 253 or amounts less than $100,000, whichever is greater) may be grouped by classes.
			DEBITS
Line No.	Description and Other Deferred Credits (a)	Balance at Beginning of Year (b)	Contra Account (c)	Amount (d)	Credits (e)	Balance at End of Year (f)
1	T.V. Pole Attachments	134,587	454/142	286,857	295,670	143,400
2	MACSS Unidentified EDI Cash				491	491
3	CIAC	156,627	107/108	156,627	62,750	62,750
4	Customer Advance Receipts	699,675	142	699,674	658,020	658,021
5	2022 PJM Transmission True-up				185,815	185,815
6	2021 PJM Transmission True-up				87,314	87,314
7	NERC Penalties	7,072				7,072
8	Security Deposit	42,456				42,456
9	Other Deferred Credits-Curr	1,800	143	1,800	63,913	63,913
47	TOTAL	1,042,217		1,144,958	1,353,973	1,251,232

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES - ACCELERATED AMORTIZATION PROPERTY (Account 281)

Report the information called for below concerning the respondent’s accounting for deferred income taxes rating to amortizable property.
For other (Specify),include deferrals relating to other income and deductions.
Use footnotes as required.

CHANGES DURING YEAR

ADJUSTMENTS

Debits

Credits

Line No.

Account

(a)

Balance at Beginning of Year

(b)

Amounts Debited to Account 410.1

(c)

Amounts Credited to Account 411.1

(d)

Amounts Debited to Account 410.2

(e)

Amounts Credited to Account 411.2

(f)

Account Credited

(g)

Amount

(h)

Account Debited

(i)

Amount

(j)

Balance at End of Year

(k)

1

Accelerated Amortization (Account 281)

2

Electric

3

Defense Facilities

4

Pollution Control Facilities

5

Other

5.1

Other (provide details in footnote):

8

TOTAL Electric (Enter Total of lines 3 thru 7)

9

Gas

10

Defense Facilities

11

Pollution Control Facilities

12

Other

12.1

Other (provide details in footnote):

15

TOTAL Gas (Enter Total of lines 10 thru 14)

16

Other

16.1

Other

16.2

Other

17

TOTAL (Acct 281) (Total of 8, 15 and 16)

18

Classification of TOTAL

19

Federal Income Tax

20

State Income Tax

21

Local Income Tax

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282)
Report the information called for below concerning the respondent’s accounting for deferred income taxes rating to property not subject to accelerated amortization. For other (Specify),include deferrals relating to other income and deductions. Use footnotes as required.
			CHANGES DURING YEAR				ADJUSTMENTS
							Debits		Credits
Line No.	Account (a)	Balance at Beginning of Year (b)	Amounts Debited to Account 410.1 (c)	Amounts Credited to Account 411.1 (d)	Amounts Debited to Account 410.2 (e)	Amounts Credited to Account 411.2 (f)	Account Credited (g)	Amount (h)	Account Debited (i)	Amount (j)	Balance at End of Year (k)
1	Account 282
2	Electric	30,460,649	3,541,707	5,644,033							28,358,323
3	Gas
4	Other (Specify)
5	Total (Total of lines 2 thru 4)	30,460,649	3,541,707	5,644,033							28,358,323
6	SFAS 109	6,865,894					1823/254	706,062	1823/254	3,280,396	4,291,560
9	TOTAL Account 282 (Total of Lines 5 thru 8)	23,594,755	3,541,707	5,644,033				706,062		3,280,396	24,066,763
10	Classification of TOTAL
11	Federal Income Tax	23,594,755	3,541,707	5,644,033				706,062		3,280,396	24,066,763
12	State Income Tax
13	Local Income Tax

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES - OTHER (Account 283)
Report the information called for below concerning the respondent's accounting for deferred income taxes relating to amounts recorded in Account 283. For other (Specify),include deferrals relating to other income and deductions. Provide in the space below explanations for Page 276. Include amounts relating to insignificant items listed under Other. Use footnotes as required.
			CHANGES DURING YEAR				ADJUSTMENTS
							Debits		Credits
Line No.	Account (a)	Balance at Beginning of Year (b)	Amounts Debited to Account 410.1 (c)	Amounts Credited to Account 411.1 (d)	Amounts Debited to Account 410.2 (e)	Amounts Credited to Account 411.2 (f)	Account Credited (g)	Amount (h)	Account Debited (i)	Amount (j)	Balance at End of Year (k)
1	Account 283
2	Electric
3	Capitalized Software	694,004	16,494	67,363							643,135
4	Reg Asset - TN Under Recovery	2,536,015	6,868,436	1,715,736							7,688,715
5	Excess Accum Def FIT	34,193	17,656	359,663							376,200
6	Def Storm Damage	1,228,313	89,371	544,479							773,205
7	REG ASSETS - Defered RTO & Carry
8	Others	312,126	1,011,780	392,575				63,749			995,080
9	TOTAL Electric (Total of lines 3 thru 8)	4,736,265	8,003,737	3,079,816				63,749			9,723,935
10	Gas
11
12
13
14
15
16
17	TOTAL Gas (Total of lines 11 thru 16)
18	TOTAL Other	(a) 8,716,809					1823/1903/254	1,227,898	1823/254	4,170,299	11,659,210
19	TOTAL (Acct 283) (Enter Total of lines 9, 17 and 18)	13,453,074	8,003,737	3,079,816				1,164,149		4,170,299	21,383,145
20	Classification of TOTAL
21	Federal Income Tax	6,284,634	8,003,737	3,079,816				434,823		1,401,325	12,175,057
22	State Income Tax	7,168,440						729,326		2,768,974	9,208,088
23	Local Income Tax
NOTES

FOOTNOTE DATA

(a) Concept: AccumulatedDeferredIncomeTaxesOther


Line 18 Other Detail	Balance at Beginning of the Year	Balance at End of the Year
Accumulated Deferred FIT -FAS 109	$1,548,369	$2,451,122
Accumulated Deferred SIT -FAS 109	7,168,440	9,208,088

	8,716,809	11,659,210

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

OTHER REGULATORY LIABILITIES (Account 254)
Report below the particulars (details) called for concerning other regulatory liabilities, including rate order docket number, if applicable. Minor items (5% of the Balance in Account 254 at end of period, or amounts less than $100,000 which ever is less), may be grouped by classes. For Regulatory Liabilities being amortized, show period of amortization.
			DEBITS
Line No.	Description and Purpose of Other Regulatory Liabilities (a)	Balance at Beginning of Current Quarter/Year (b)	Account Credited (c)	Amount (d)	Credits (e)	Balance at End of Current Quarter/Year (f)
1	SFAS 109 Deferred Federal Income Tax	11,051,706	190/236/254/282/283/409/410	3,744,891	469,169	7,775,984
2	Unrealized Gain on Fwd Commitments	9,876	175	35,117	25,731	490
3	Netting of Trading Activities related to Unrealis		182	2,140	1,972	168
4	PJM Trans Enhancement Reg Liability	845,954	142	189,995		655,959
5	TN Over Recovery FTRAR Credits	180,137	407	129,919	123,064	173,282
6	TENN Admin Cost Rider				4,429	4,429
41	TOTAL	12,087,673		4,102,062	624,365	8,609,976

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Electric Operating Revenues
The following instructions generally apply to the annual version of these pages. Do not report quarterly data in columns (c), (e), (f), and (g). Unbilled revenues and MWH related to unbilled revenues need not be reported separately as required in the annual version of these pages. Report below operating revenues for each prescribed account, and manufactured gas revenues in total. Report number of customers, columns (f) and (g), on the basis of meters, in addition to the number of flat rate accounts; except that where separate meter readings are added for billing purposes, one customer should be counted for each group of meters added. The average number of customers means the average of twelve figures at the close of each month. If increases or decreases from previous period (columns (c),(e), and (g)), are not derived from previously reported figures, explain any inconsistencies in a footnote. Disclose amounts of $250,000 or greater in a footnote for accounts 451, 456, and 457.2. Commercial and industrial Sales, Account 442, may be classified according to the basis of classification (Small or Commercial, and Large or Industrial) regularly used by the respondent if such basis of classification is not generally greater than 1000 Kw of demand. (See Account 442 of the Uniform System of Accounts. Explain basis of classification in a footnote.) See page 108, Important Changes During Period, for important new territory added and important rate increase or decreases. For Lines 2,4,5,and 6, see Page 304 for amounts relating to unbilled revenue by accounts. Include unmetered sales. Provide details of such Sales in a footnote.
Line No.	Title of Account (a)	Operating Revenues Year to Date Quarterly/Annual (b)	Operating Revenues Previous year (no Quarterly) (c)	MEGAWATT HOURS SOLD Year to Date Quarterly/Annual (d)	MEGAWATT HOURS SOLD Amount Previous year (no Quarterly) (e)	AVG.NO. CUSTOMERS PER MONTH Current Year (no Quarterly) (f)	AVG.NO. CUSTOMERS PER MONTH Previous Year (no Quarterly) (g)
1	SalesOfElectricityHeadingAbstract Sales of Electricity
2	ResidentialSalesAbstract (440) Residential Sales	71,372,770	66,238,134	655,536	653,124	42,525	42,355
3	CommercialAndIndustrialSalesAbstract (442) Commercial and Industrial Sales
4	CommercialSalesAbstract Small (or Comm.) (See Instr. 4)	42,298,480	38,476,883	357,752	352,894	5,969	5,918
5	IndustrialSalesAbstract Large (or Ind.) (See Instr. 4)	64,099,427	41,973,750	821,973	588,374	195	191
6	PublicStreetAndHighwayLightingAbstract (444) Public Street and Highway Lighting	1,885,482	1,678,481	8,664	8,671	100	102
7	OtherSalesToPublicAuthoritiesAbstract (445) Other Sales to Public Authorities	2,527,149	2,429,034	22,854	23,485	31	31
8	SalesToRailroadsAndRailwaysAbstract (446) Sales to Railroads and Railways
9	InterdepartmentalSalesAbstract (448) Interdepartmental Sales
10	SalesToUltimateConsumersAbstract TOTAL Sales to Ultimate Consumers	(a) 182,183,308	(d) 150,796,282	1,866,778	1,626,549	48,820	48,597
11	SalesForResaleAbstract (447) Sales for Resale
12	SalesOfElectricityAbstract TOTAL Sales of Electricity	182,183,308	150,796,282	1,866,778	1,626,549	48,820	48,597
13	ProvisionForRateRefundsAbstract (Less) (449.1) Provision for Rate Refunds	616,562	904,344
14	RevenuesNetOfProvisionForRefundsAbstract TOTAL Revenues Before Prov. for Refunds	181,566,746	149,891,938	1,866,778	1,626,549	48,820	48,597
15	OtherOperatingRevenuesAbstract Other Operating Revenues
16	ForfeitedDiscounts (450) Forfeited Discounts	239,199	211,679
17	MiscellaneousServiceRevenues (451) Miscellaneous Service Revenues	(b) 184,728	288,181
18	SalesOfWaterAndWaterPower (453) Sales of Water and Water Power
19	RentFromElectricProperty (454) Rent from Electric Property	1,049,189	103,827
20	InterdepartmentalRents (455) Interdepartmental Rents
21	OtherElectricRevenue (456) Other Electric Revenues	(c) 281,928	234,668
22	RevenuesFromTransmissionOfElectricityOfOthers (456.1) Revenues from Transmission of Electricity of Others	6,560,611	6,017,436
23	RegionalTransmissionServiceRevenues (457.1) Regional Control Service Revenues
24	MiscellaneousRevenue (457.2) Miscellaneous Revenues
25	OtherMiscellaneousOperatingRevenues Other Miscellaneous Operating Revenues
26	OtherOperatingRevenues TOTAL Other Operating Revenues	8,315,655	6,855,792
27	ElectricOperatingRevenues TOTAL Electric Operating Revenues	189,882,400	156,747,730
Line12, column (b) includes $ 597,336 of unbilled revenues.
Line12, column (d) includes 4,508 MWH relating to unbilled revenues

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: SalesToUltimateConsumers

Detail of Unmetered Sales included in Total Sales to Ultimate Customers:


Account	Revenue	MWH Sold	Average No. of Customers

440 Residential	375,620.00	1,544.00	2,466.00
442 Commercial	591,309.00	2,878.00	1,182.00
442 Industrial	36,062.00	199.00	48.00
445 Other Public Sales	3,148.00	15.00	11.00
	1,006,139.00	4,636.00	3,707.00

Unmetered Sales are from outdoor lighting (OL) as detailed on page 304

(b) Concept: MiscellaneousServiceRevenues

Customer service revenue, including connects, reconnects, disconnects, temporary services and other charges billed to customers.

(c) Concept: OtherElectricRevenue

Associated Business Development

(d) Concept: SalesToUltimateConsumers

Detail of Unmetered Sales included in Total Sales to Ultimate Customers:


Account	Revenue	MWH Sold	Average No. of Customers

440 Residential	336,316.00	1,549.00	2,462.00
442 Commercial	532,713.00	2,860.00	1,174.00
442 Industrial	37,158.00	220.00	48.00
445 Other Public Sales	2,727.00	15.00	10.00
	908,914.00	4,644.00	3,694.00

Unmetered Sales are from outdoor lighting (OL) as detailed on page 304

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

REGIONAL TRANSMISSION SERVICE REVENUES (Account 457.1)
The respondent shall report below the revenue collected for each service (i.e., control area administration, market administration, etc.) performed pursuant to a Commission approved tariff. All amounts separately billed must be detailed below.
Line No.	Description of Service (a)	Balance at End of Quarter 1 (b)	Balance at End of Quarter 2 (c)	Balance at End of Quarter 3 (d)	Balance at End of Year (e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1	OL - OUTDOOR LIGHTING	1,544	375,620	0		0.2433
2	RS - RESIDENTIAL SERVICE	654,824	70,426,158	42,459	15,423	0.1075
3	RSE - RESIDENTIAL SERVICE - EMPLOYEE	1,316	133,459	65	20,246	0.1014
4	RS-TOD - RESIDENTIAL SERVICE TOD	254	23,050	1	254,000	0.0907
5	Misc Adjustments		339			0.0000
41	TOTAL Billed Residential Sales	657,938	70,958,626	42,525	15,472	0.1079
42	TOTAL Unbilled Rev. (See Instr. 6)	2,402	414,144			0.1724
43	TOTAL	655,536	71,372,770	42,525	15,415	0.1089

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1	Church Service	8,930	1,207,965	192	46,510	0.1353
2	Electrical Heating General	25,175	3,269,573	600	41,958	0.1299
3	GS-TOD - GENERAL SERVICE TOD	289	32,202	5	57,800	0.1114
4	IP - INDUSTRIAL POWER SERVICE	32,258	2,376,548	1	32,258,000	0.0737
5	Outdoor Light		114	0	0	0.0000
6	LGS - LARGE GENERAL SERVICE	171,579	18,741,359	168	1,021,304	0.1092
7	LPT-LED POSTOP UG			0
8	MGS - MEDIUM GENERAL SERVICE	95,432	12,624,492	1,240	76,961	0.1323
9	OL - OUTDOOR LIGHTING	2,878	591,309	0		0.2055
10	SGS - SMALL GENERAL SERVICE	22,136	3,275,224	3,763	5,883	0.1480
41	TOTAL Billed Small or Commercial	358,677	42,118,786	5,969	60,090	0.1174
42	TOTAL Unbilled Rev. Small or Commercial (See Instr. 6)	925	179,694			0.1943
43	TOTAL Small or Commercial	357,752	42,298,480	5,969	59,935	0.1182

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1	Electrical Heating General	732	92,701	15	48,800	0.1266
2	IP - INDUSTRIAL POWER SERVICE	736,064	54,528,112	6	122,677,333	0.0741
3	LGS - LARGE GENERAL SERVICE	40,178	5,040,875	35	1,147,943	0.1255
4	MGS - MEDIUM GENERAL SERVICE	6,014	839,791	74	81,270	0.1396
5	OL - OUTDOOR LIGHTING	199	36,062			0.1812
6	SGS - SMALL GENERAL SERVICE	573	74,369	65	8,815	0.1298
7	Misc Adjustments		857,091
8	Estimated	39,338	2,648,693			0.0673
41	TOTAL Billed Large (or Ind.) Sales	823,098	64,117,694	195	4,221,015	0.0779
42	TOTAL Unbilled Rev. Large (or Ind.) (See Instr. 6)	1,125	18,267			0.0162
43	TOTAL Large (or Ind.)	821,973	64,099,427	195	4,215,246	0.0780

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Commercial and Industrial Sales
42	TOTAL Unbilled Rev. (See Instr. 6)
43	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1	SGS - SMALL GENERAL SERVICE	222	50,025	96	2,313	0.2253
2	SL - STREET LIGHTING	8,443	1,835,250	4	2,110,750	0.2174
41	TOTAL Billed Public Street and Highway Lighting	8,665	1,885,275	100	86,650	0.2176
42	TOTAL Unbilled Rev. (See Instr. 6)	1	207			0.2070
43	TOTAL	8,664	1,885,482	100	86,640	0.2176

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1	OL - OUTDOOR LIGHTING	15	3,147	0		0.2098
2	Public School	22,894	2,502,444	31	738,516	0.1093
41	TOTAL Billed Other Sales to Public Authorities	22,909	2,505,591	31	739,000	0.1094
42	TOTAL Unbilled Rev. (See Instr. 6)	55	21,558			0.3920
43	TOTAL	22,854	2,527,149	31	737,226	0.1106

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Provision For Rate Refunds
42	TOTAL Unbilled Rev. (See Instr. 6)
43	TOTAL		616,562

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
41	TOTAL Billed - All Accounts	1,871,287	181,585,972	48,820	5,122,227	0.0970
42	TOTAL Unbilled Rev. (See Instr. 6) - All Accounts	4,508	597,336			0.1325
43	TOTAL - All Accounts	(a) 1,866,779	182,183,308	48,820	5,122,227	0.0976

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: MegawattHoursOfElectricitySoldByRateSchedulesIncludingUnbilledRevenue

As a result of Tennessee Regulatory Authority (TRA) Order in Base Rate Case Docket No. 16-00001, previously existing Fuel Clause and Purchased Power adjustment riders terminated on August 31, 2016 and effective September 1, 2016 the combined Fuel and Purchased Power Adjustment Rider (FPPAR) was implemented. Billed FPPAR revenues for 2022 are in the table below:


Residential	Outdoor Lighting	54,472
	Residential Service	58,079,809
	Residential Service Employee	115,612
	Residential Service TOD	19,833
	Total	58,269,726
Commercial	Church Service	726,248
	Electrical Heating General	2,005,045
	General Service TOD	22,269
	Industrial Power Service	2,035,714
	Large General Service	11,770,571
	Medium General Service	7,477,316
	Outdoor Lighting	105,010
	Small General Service	1,587,416
	Total	25,729,589
Industrial	Electrical Heating General	57,900
	Industrial Power Service	48,967,195
	Large General Service	2,914,042
	Medium General Service	475,945
	Outdoor Lighting	7,260
	Small General Service	41,146
	Total	52,463,488
Public	Small General Service	15,848
	STREET LIGHTS	149,698
	Total	165,546
Other	Outdoor Lighting	554
	Public Schools	2,029,078
	Total	2,029,632
	Grand Total	138,657,982

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SALES FOR RESALE (Account 447)
Report all sales for resale (i.e., sales to purchasers other than ultimate consumers) transacted on a settlement basis other than power exchanges during the year. Do not report exchanges of electricity ( i.e., transactions involving a balancing of debits and credits for energy, capacity, etc.) and any settlements for imbalanced exchanges on this schedule. Power exchanges must be reported on the Purchased Power schedule (Page 326). Enter the name of the purchaser in column (a). Do note abbreviate or truncate the name or use acronyms. Explain in a footnote any ownership interest or affiliation the respondent has with the purchaser. In column (b), enter a Statistical Classification Code based on the original contractual terms and conditions of the service as follows: RQ - for requirements service. Requirements service is service which the supplier plans to provide on an ongoing basis (i.e., the supplier includes projected load for this service in its system resource planning). In addition, the reliability of requirements service must be the same as, or second only to, the supplier's service to its own ultimate consumers. LF - for tong-term service. "Long-term" means five years or Longer and "firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions (e.g., the supplier must attempt to buy emergency energy from third parties to maintain deliveries of LF service). This category should not be used for Long-term firm service which meets the definition of RQ service. For all transactions identified as LF, provide in a footnote the termination date of the contract defined as the earliest date that either buyer or setter can unilaterally get out of the contract. IF - for intermediate-term firm service. The same as LF service except that "intermediate-term" means longer than one year but Less than five years. SF - for short-term firm service. Use this category for all firm services where the duration of each period of commitment for service is one year or less. LU - for Long-term service from a designated generating unit. "Long-term" means five years or Longer. The availability and reliability of service, aside from transmission constraints, must match the availability and reliability of designated unit. IU - for intermediate-term service from a designated generating unit. The same as LU service except that "intermediate-term" means Longer than one year but Less than five years. OS - for other service. use this category only for those services which cannot be placed in the above-defined categories, such as all non-firm service regardless of the Length of the contract and service from designated units of Less than one year. Describe the nature of the service in a footnote. AD - for Out-of-period adjustment. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting years. Provide an explanation in a footnote for each adjustment. Group requirements RQ sales together and report them starting at line number one. After listing all RQ sales, enter "Subtotal - RQ" in column (a). The remaining sales may then be listed in any order. Enter "Subtotal-Non-RQ" in column (a) after this Listing. Enter "Total'' in column (a) as the Last Line of the schedule. Report subtotals and total for columns (g) through (k). In Column (c), identify the FERC Rate Schedule or Tariff Number. On separate Lines, List all FERC rate schedules or tariffs under which service, as identified in column (b), is provided. For requirements RQ sales and any type of-service involving demand charges imposed on a monthly (or Longer) basis, enter the average monthly billing demand in column (d), the average monthly non-coincident peak (NCP) demand in column (e), and the average monthly coincident peak (CP) demand in column (f). For all other types of service, enter NA in columns (d), (e) and (f). Monthly NCP demand is the maximum metered hourly (60-minute integration) demand in a month. Monthly CP demand is the metered demand during the hour (60-minute integration) in which the supplier's system reaches its monthly peak. Demand reported in columns (e) and (f) must be in megawatts. Footnote any demand not stated on a megawatt basis and explain. Report in column (g) the megawatt hours shown on bills rendered to the purchaser. Report demand charges in column (h), energy charges in column (i), and the total of any other types of charges, including out-of-period adjustments, in column (j). Explain in a footnote all components of the amount shown in column (j). Report in column (k) the total charge shown on bills rendered to the purchaser. The data in column (g) through (k) must be subtotaled based on the RQ/Non-RQ grouping (see instruction 4), and then totaled on the Last -line of the schedule. The "Subtotal - RQ" amount in column (g) must be reported as Requirements Sales For Resale on Page 401, line 23. The "Subtotal - Non-RQ" amount in column (g) must be reported as Non-Requirements Sales For Resale on Page 401,line 24. Footnote entries as required and provide explanations following all required data.
					ACTUAL DEMAND (MW)			REVENUE
Line No.	Name of Company or Public Authority (Footnote Affiliations) (a)	Statistical Classification (b)	FERC Rate Schedule or Tariff Number (c)	Average Monthly Billing Demand (MW) (d)	Average Monthly NCP Demand (e)	Average Monthly CP Demand (f)	Megawatt Hours Sold (g)	Demand Charges ($) (h)	Energy Charges ($) (i)	Other Charges ($) (j)	Total ($) (h+i+j) (k)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15	Subtotal - RQ
16	Subtotal-Non-RQ
17	Total

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures, explain in footnote.
Line No.	Account (a)	Amount for Current Year (b)	Amount for Previous Year (c) (c)
1	PowerProductionExpensesAbstract 1. POWER PRODUCTION EXPENSES
2	SteamPowerGenerationAbstract A. Steam Power Generation
3	SteamPowerGenerationOperationAbstract Operation
4	OperationSupervisionAndEngineeringSteamPowerGeneration (500) Operation Supervision and Engineering
5	FuelSteamPowerGeneration (501) Fuel
6	SteamExpensesSteamPowerGeneration (502) Steam Expenses
7	SteamFromOtherSources (503) Steam from Other Sources
8	SteamTransferredCredit (Less) (504) Steam Transferred-Cr.
9	ElectricExpensesSteamPowerGeneration (505) Electric Expenses
10	MiscellaneousSteamPowerExpenses (506) Miscellaneous Steam Power Expenses
11	RentsSteamPowerGeneration (507) Rents
12	Allowances (509) Allowances
13	SteamPowerGenerationOperationsExpense TOTAL Operation (Enter Total of Lines 4 thru 12)
14	SteamPowerGenerationMaintenanceAbstract Maintenance
15	MaintenanceSupervisionAndEngineeringSteamPowerGeneration (510) Maintenance Supervision and Engineering
16	MaintenanceOfStructuresSteamPowerGeneration (511) Maintenance of Structures
17	MaintenanceOfBoilerPlantSteamPowerGeneration (512) Maintenance of Boiler Plant
18	MaintenanceOfElectricPlantSteamPowerGeneration (513) Maintenance of Electric Plant
19	MaintenanceOfMiscellaneousSteamPlant (514) Maintenance of Miscellaneous Steam Plant
20	SteamPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of Lines 15 thru 19)
21	PowerProductionExpensesSteamPower TOTAL Power Production Expenses-Steam Power (Enter Total of Lines 13 & 20)
22	NuclearPowerGenerationAbstract B. Nuclear Power Generation
23	NuclearPowerGenerationOperationAbstract Operation
24	OperationSupervisionAndEngineeringNuclearPowerGeneration (517) Operation Supervision and Engineering
25	NuclearFuelExpense (518) Fuel
26	CoolantsAndWater (519) Coolants and Water
27	SteamExpensesNuclearPowerGeneration (520) Steam Expenses
28	SteamFromOtherSourcesNuclearPowerGeneration (521) Steam from Other Sources
29	SteamTransferredCreditNuclearPowerGeneration (Less) (522) Steam Transferred-Cr.
30	ElectricExpensesNuclearPowerGeneration (523) Electric Expenses
31	MiscellaneousNuclearPowerExpenses (524) Miscellaneous Nuclear Power Expenses
32	RentsNuclearPowerGeneration (525) Rents
33	NuclearPowerGenerationOperationsExpense TOTAL Operation (Enter Total of lines 24 thru 32)
34	NuclearPowerGenerationMaintenanceAbstract Maintenance
35	MaintenanceSupervisionAndEngineeringNuclearPowerGeneration (528) Maintenance Supervision and Engineering
36	MaintenanceOfStructuresNuclearPowerGeneration (529) Maintenance of Structures
37	MaintenanceOfReactorPlantEquipmentNuclearPowerGeneration (530) Maintenance of Reactor Plant Equipment
38	MaintenanceOfElectricPlantNuclearPowerGeneration (531) Maintenance of Electric Plant
39	MaintenanceOfMiscellaneousNuclearPlant (532) Maintenance of Miscellaneous Nuclear Plant
40	NuclearPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of lines 35 thru 39)
41	PowerProductionExpensesNuclearPower TOTAL Power Production Expenses-Nuclear. Power (Enter Total of lines 33 & 40)
42	HydraulicPowerGenerationAbstract C. Hydraulic Power Generation
43	HydraulicPowerGenerationOperationAbstract Operation
44	OperationSupervisionAndEngineeringHydraulicPowerGeneration (535) Operation Supervision and Engineering
45	WaterForPower (536) Water for Power
46	HydraulicExpenses (537) Hydraulic Expenses
47	ElectricExpensesHydraulicPowerGeneration (538) Electric Expenses
48	MiscellaneousHydraulicPowerGenerationExpenses (539) Miscellaneous Hydraulic Power Generation Expenses
49	RentsHydraulicPowerGeneration (540) Rents
50	HydraulicPowerGenerationOperationsExpense TOTAL Operation (Enter Total of Lines 44 thru 49)
51	HydraulicPowerGenerationContinuedAbstract C. Hydraulic Power Generation (Continued)
52	HydraulicPowerGenerationMaintenanceAbstract Maintenance
53	MaintenanceSupervisionAndEngineeringHydraulicPowerGeneration (541) Mainentance Supervision and Engineering
54	MaintenanceOfStructuresHydraulicPowerGeneration (542) Maintenance of Structures
55	MaintenanceOfReservoirsDamsAndWaterways (543) Maintenance of Reservoirs, Dams, and Waterways
56	MaintenanceOfElectricPlantHydraulicPowerGeneration (544) Maintenance of Electric Plant
57	MaintenanceOfMiscellaneousHydraulicPlant (545) Maintenance of Miscellaneous Hydraulic Plant
58	HydraulicPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of lines 53 thru 57)
59	PowerProductionExpensesHydraulicPower TOTAL Power Production Expenses-Hydraulic Power (Total of Lines 50 & 58)
60	OtherPowerGenerationAbstract D. Other Power Generation
61	OtherPowerGenerationOperationAbstract Operation
62	OperationSupervisionAndEngineeringOtherPowerGeneration (546) Operation Supervision and Engineering
63	Fuel (547) Fuel
64	GenerationExpenses (548) Generation Expenses
64.1	OperationOfEnergyStorageEquipment (548.1) Operation of Energy Storage Equipment
65	MiscellaneousOtherPowerGenerationExpenses (549) Miscellaneous Other Power Generation Expenses
66	RentsOtherPowerGeneration (550) Rents	9
67	OtherPowerGenerationOperationsExpense TOTAL Operation (Enter Total of Lines 62 thru 67)	9
68	OtherPowerGenerationMaintenanceAbstract Maintenance
69	MaintenanceSupervisionAndEngineeringOtherPowerGeneration (551) Maintenance Supervision and Engineering
70	MaintenanceOfStructures (552) Maintenance of Structures
71	MaintenanceOfGeneratingAndElectricPlant (553) Maintenance of Generating and Electric Plant
71.1	MaintenanceOfEnergyStorageEquipmentOtherPowerGeneration (553.1) Maintenance of Energy Storage Equipment
72	MaintenanceOfMiscellaneousOtherPowerGenerationPlant (554) Maintenance of Miscellaneous Other Power Generation Plant
73	OtherPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of Lines 69 thru 72)
74	PowerProductionExpensesOtherPower TOTAL Power Production Expenses-Other Power (Enter Total of Lines 67 & 73)	9
75	OtherPowerSuplyExpensesAbstract E. Other Power Supply Expenses
76	PurchasedPower (555) Purchased Power	145,111,949	118,047,129
76.1	PowerPurchasedForStorageOperations (555.1) Power Purchased for Storage Operations	0
77	SystemControlAndLoadDispatchingElectric (556) System Control and Load Dispatching
78	OtherExpensesOtherPowerSupplyExpenses (557) Other Expenses	20
79	OtherPowerSupplyExpense TOTAL Other Power Supply Exp (Enter Total of Lines 76 thru 78)	145,111,969	118,047,129
80	PowerProductionExpenses TOTAL Power Production Expenses (Total of Lines 21, 41, 59, 74 & 79)	145,111,960	118,047,129
81	TransmissionExpensesAbstract 2. TRANSMISSION EXPENSES
82	TransmissionExpensesOperationAbstract Operation
83	OperationSupervisionAndEngineeringElectricTransmissionExpenses (560) Operation Supervision and Engineering	208,712	192,959
85	LoadDispatchReliability (561.1) Load Dispatch-Reliability
86	LoadDispatchMonitorAndOperateTransmissionSystem (561.2) Load Dispatch-Monitor and Operate Transmission System	8,085	7,715
87	LoadDispatchTransmissionServiceAndScheduling (561.3) Load Dispatch-Transmission Service and Scheduling
88	SchedulingSystemControlAndDispatchServices (561.4) Scheduling, System Control and Dispatch Services
89	ReliabilityPlanningAndStandardsDevelopment (561.5) Reliability, Planning and Standards Development	5,762	8,825
90	TransmissionServiceStudies (561.6) Transmission Service Studies
91	GenerationInterconnectionStudies (561.7) Generation Interconnection Studies
92	ReliabilityPlanningAndStandardsDevelopmentServices (561.8) Reliability, Planning and Standards Development Services
93	StationExpensesTransmissionExpense (562) Station Expenses	179,434	146,581
93.1	OperationOfEnergyStorageEquipmentTransmissionExpense (562.1) Operation of Energy Storage Equipment
94	OverheadLineExpense (563) Overhead Lines Expenses	1,973	974
95	UndergroundLineExpensesTransmissionExpense (564) Underground Lines Expenses
96	TransmissionOfElectricityByOthers (565) Transmission of Electricity by Others	106
97	MiscellaneousTransmissionExpenses (566) Miscellaneous Transmission Expenses	63,242	59,210
98	RentsTransmissionElectricExpense (567) Rents
99	TransmissionOperationExpense TOTAL Operation (Enter Total of Lines 83 thru 98)	467,313	416,264
100	TransmissionMaintenanceAbstract Maintenance
101	MaintenanceSupervisionAndEngineeringElectricTransmissionExpenses (568) Maintenance Supervision and Engineering	183	138
102	MaintenanceOfStructuresTransmissionExpense (569) Maintenance of Structures	5,634	9,395
103	MaintenanceOfComputerHardwareTransmission (569.1) Maintenance of Computer Hardware	378	434
104	MaintenanceOfComputerSoftwareTransmission (569.2) Maintenance of Computer Software	8,998	6,653
105	MaintenanceOfCommunicationEquipmentElectricTransmission (569.3) Maintenance of Communication Equipment	118	31
106	MaintenanceOfMiscellaneousRegionalTransmissionPlant (569.4) Maintenance of Miscellaneous Regional Transmission Plant
107	MaintenanceOfStationEquipmentTransmission (570) Maintenance of Station Equipment	77,969	115,289
107.1	MaintenanceOfEnergyStorageEquipmentTransmission (570.1) Maintenance of Energy Storage Equipment
108	MaintenanceOfOverheadLinesTransmission (571) Maintenance of Overhead Lines	280,307	62,010
109	MaintenanceOfUndergroundLinesTransmission (572) Maintenance of Underground Lines	245	215
110	MaintenanceOfMiscellaneousTransmissionPlant (573) Maintenance of Miscellaneous Transmission Plant	35,928	85,660
111	TransmissionMaintenanceExpenseElectric TOTAL Maintenance (Total of Lines 101 thru 110)	409,760	279,826
112	TransmissionExpenses TOTAL Transmission Expenses (Total of Lines 99 and 111)	877,073	696,090
113	RegionalMarketExpensesAbstract 3. REGIONAL MARKET EXPENSES
114	RegionalMarketExpensesOperationAbstract Operation
115	OperationSupervision (575.1) Operation Supervision
116	DayAheadAndRealTimeMarketAdministration (575.2) Day-Ahead and Real-Time Market Facilitation
117	TransmissionRightsMarketAdministration (575.3) Transmission Rights Market Facilitation
118	CapacityMarketAdministration (575.4) Capacity Market Facilitation
119	AncillaryServicesMarketAdministration (575.5) Ancillary Services Market Facilitation
120	MarketMonitoringAndCompliance (575.6) Market Monitoring and Compliance
121	MarketFacilitationMonitoringAndComplianceServices (575.7) Market Facilitation, Monitoring and Compliance Services
122	RentsRegionalMarketExpenses (575.8) Rents
123	RegionalMarketOperationExpense Total Operation (Lines 115 thru 122)
124	RegionalMarketExpensesMaintenanceAbstract Maintenance
125	MaintenanceOfStructuresAndImprovementsRegionalMarketExpenses (576.1) Maintenance of Structures and Improvements
126	MaintenanceOfComputerHardware (576.2) Maintenance of Computer Hardware
127	MaintenanceOfComputerSoftware (576.3) Maintenance of Computer Software
128	MaintenanceOfCommunicationEquipmentRegionalMarketExpenses (576.4) Maintenance of Communication Equipment
129	MaintenanceOfMiscellaneousMarketOperationPlant (576.5) Maintenance of Miscellaneous Market Operation Plant
130	RegionalMarketMaintenanceExpense Total Maintenance (Lines 125 thru 129)
131	RegionalMarketExpenses TOTAL Regional Transmission and Market Operation Expenses (Enter Total of Lines 123 and 130)
132	DistributionExpensesAbstract 4. DISTRIBUTION EXPENSES
133	DistributionExpensesOperationAbstract Operation
134	OperationSupervisionAndEngineeringDistributionExpense (580) Operation Supervision and Engineering	361,095	406,536
135	LoadDispatching (581) Load Dispatching	1	1
136	StationExpensesDistribution (582) Station Expenses	61,859	113,627
137	OverheadLineExpenses (583) Overhead Line Expenses	151,227	146,160
138	UndergroundLineExpenses (584) Underground Line Expenses	140,570	95,648
138.1	OperationOfEnergyStorageEquipmentDistribution (584.1) Operation of Energy Storage Equipment
139	StreetLightingAndSignalSystemExpenses (585) Street Lighting and Signal System Expenses	50,400	129,920
140	MeterExpenses (586) Meter Expenses	73,221	76,355
141	CustomerInstallationsExpenses (587) Customer Installations Expenses	42,379	57,752
142	MiscellaneousDistributionExpenses (588) Miscellaneous Expenses	677,218	518,676
143	RentsDistributionExpense (589) Rents	202,098	430,110
144	DistributionOperationExpensesElectric TOTAL Operation (Enter Total of Lines 134 thru 143)	1,760,066	1,114,565
145	DistributionExpensesMaintenanceAbstract Maintenance
146	MaintenanceSupervisionAndEngineering (590) Maintenance Supervision and Engineering	1,867	2,507
147	MaintenanceOfStructuresDistributionExpense (591) Maintenance of Structures	2,421	10,456
148	MaintenanceOfStationEquipment (592) Maintenance of Station Equipment	70,333	75,755
148.1	MaintenanceOfEnergyStorageEquipment (592.2) Maintenance of Energy Storage Equipment
149	MaintenanceOfOverheadLines (593) Maintenance of Overhead Lines	9,835,765	7,392,501
150	MaintenanceOfUndergroundLines (594) Maintenance of Underground Lines	56,373	53,111
151	MaintenanceOfLineTransformers (595) Maintenance of Line Transformers	9,672	13,673
152	MaintenanceOfStreetLightingAndSignalSystems (596) Maintenance of Street Lighting and Signal Systems	37,075	42,590
153	MaintenanceOfMeters (597) Maintenance of Meters	12,388	16,869
154	MaintenanceOfMiscellaneousDistributionPlant (598) Maintenance of Miscellaneous Distribution Plant	239,782	228,316
155	DistributionMaintenanceExpenseElectric TOTAL Maintenance (Total of Lines 146 thru 154)	10,265,676	7,835,779
156	DistributionExpenses TOTAL Distribution Expenses (Total of Lines 144 and 155)	12,025,742	8,950,344
157	CustomerAccountsExpensesAbstract 5. CUSTOMER ACCOUNTS EXPENSES
158	CustomerAccountsExpensesOperationsAbstract Operation
159	SupervisionCustomerAccountExpenses (901) Supervision	17,298	20,087
160	MeterReadingExpenses (902) Meter Reading Expenses	21,850	35,960
161	CustomerRecordsAndCollectionExpenses (903) Customer Records and Collection Expenses	1,204,106	1,208,034
162	UncollectibleAccounts (904) Uncollectible Accounts	2,819	2,871
163	MiscellaneousCustomerAccountsExpenses (905) Miscellaneous Customer Accounts Expenses	9,189	11,583
164	CustomerAccountExpenses TOTAL Customer Accounts Expenses (Enter Total of Lines 159 thru 163)	1,255,261	1,278,534
165	CustomerServiceAndInformationalExpensesAbstract 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
166	CustomerServiceAndInformationalExpensesOperationAbstract Operation
167	SupervisionCustomerServiceAndInformationExpenses (907) Supervision	8,314	12,438
168	CustomerAssistanceExpenses (908) Customer Assistance Expenses	161,309	281,261
169	InformationalAndInstructionalAdvertisingExpenses (909) Informational and Instructional Expenses
170	MiscellaneousCustomerServiceAndInformationalExpenses (910) Miscellaneous Customer Service and Informational Expenses	1,038	1,913
171	CustomerServiceAndInformationExpenses TOTAL Customer Service and Information Expenses (Total Lines 167 thru 170)	170,661	295,612
172	SalesExpenseAbstract 7. SALES EXPENSES
173	SalesExpenseOperationAbstract Operation
174	SupervisionSalesExpense (911) Supervision
175	DemonstratingAndSellingExpenses (912) Demonstrating and Selling Expenses	4,716	5,930
176	AdvertisingExpenses (913) Advertising Expenses
177	MiscellaneousSalesExpenses (916) Miscellaneous Sales Expenses
178	SalesExpenses TOTAL Sales Expenses (Enter Total of Lines 174 thru 177)	4,716	5,930
179	AdministrativeAndGeneralExpensesAbstract 8. ADMINISTRATIVE AND GENERAL EXPENSES
180	AdministrativeAndGeneralExpensesOperationAbstract Operation
181	AdministrativeAndGeneralSalaries (920) Administrative and General Salaries	909,722	791,569
182	OfficeSuppliesAndExpenses (921) Office Supplies and Expenses	87,895	14,038
183	AdministrativeExpensesTransferredCredit (Less) (922) Administrative Expenses Transferred-Credit	375,042	348,295
184	OutsideServicesEmployed (923) Outside Services Employed	425,559	197,164
185	PropertyInsurance (924) Property Insurance	57,868	62,955
186	InjuriesAndDamages (925) Injuries and Damages	161,629	288,506
187	EmployeePensionsAndBenefits (926) Employee Pensions and Benefits	361,199	123,462
188	FranchiseRequirements (927) Franchise Requirements
189	RegulatoryCommissionExpenses (928) Regulatory Commission Expenses	795,158	779,901
190	DuplicateChargesCredit (929) (Less) Duplicate Charges-Cr.
191	GeneralAdvertisingExpenses (930.1) General Advertising Expenses	1,887	3,690
192	MiscellaneousGeneralExpenses (930.2) Miscellaneous General Expenses	225,084	94,323
193	RentsAdministrativeAndGeneralExpense (931) Rents	31,851	39,440
194	AdministrativeAndGeneralOperationExpense TOTAL Operation (Enter Total of Lines 181 thru 193)	1,960,413	1,799,829
195	AdministrativeAndGeneralExpensesMaintenanceAbstract Maintenance
196	MaintenanceOfGeneralPlant (935) Maintenance of General Plant	410,515	428,204
197	AdministrativeAndGeneralExpenses TOTAL Administrative & General Expenses (Total of Lines 194 and 196)	2,370,928	2,228,033
198	OperationsAndMaintenanceExpensesElectric TOTAL Electric Operation and Maintenance Expenses (Total of Lines 80, 112, 131, 156, 164, 171, 178, and 197)	161,816,340	131,501,673

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

PURCHASED POWER (Account 555)
Report all power purchases made during the year. Also report exchanges of electricity (i.e., transactions involving a balancing of debits and credits for energy, capacity, etc.) and any settlements for imbalanced exchanges. Enter the name of the seller or other party in an exchange transaction in column (a). Do not abbreviate or truncate the name or use acronyms. Explain in a footnote any ownership interest or affiliation the respondent has with the seller. In column (b), enter a Statistical Classification Code based on the original contractual terms and conditions of the service as follows: RQ - for requirements service. Requirements service is service which the supplier plans to provide on an ongoing basis (i.e., the supplier includes projects load for this service in its system resource planning). In addition, the reliability of requirement service must be the same as, or second only to, the supplier's service to its own ultimate consumers. LF - for long-term firm service. "Long-term" means five years or longer and "firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions (e.g., the supplier must attempt to buy emergency energy from third parties to maintain deliveries of LF service). This category should not be used for long-term firm service firm service which meets the definition of RQ service. For all transaction identified as LF, provide in a footnote the termination date of the contract defined as the earliest date that either buyer or seller can unilaterally get out of the contract. IF - for intermediate-term firm service. The same as LF service expect that "intermediate-term" means longer than one year but less than five years. SF - for short-term service. Use this category for all firm services, where the duration of each period of commitment for service is one year or less. LU - for long-term service from a designated generating unit. "Long-term" means five years or longer. The availability and reliability of service, aside from transmission constraints, must match the availability and reliability of the designated unit. IU - for intermediate-term service from a designated generating unit. The same as LU service expect that "intermediate-term" means longer than one year but less than five years. EX - For exchanges of electricity. Use this category for transactions involving a balancing of debits and credits for energy, capacity, etc. and any settlements for imbalanced exchanges. OS - for other service. Use this category only for those services which cannot be placed in the above-defined categories, such as all non-firm service regardless of the Length of the contract and service from designated units of Less than one year. Describe the nature of the service in a footnote for each adjustment. AD - for out-of-period adjustment. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting years. Provide an explanation in a footnote for each adjustment. In column (c), identify the FERC Rate Schedule Number or Tariff, or, for non-FERC jurisdictional sellers, include an appropriate designation for the contract. On separate lines, list all FERC rate schedules, tariffs or contract designations under which service, as identified in column (b), is provided. For requirements RQ purchases and any type of service involving demand charges imposed on a monnthly (or longer) basis, enter the monthly average billing demand in column (d), the average monthly non-coincident peak (NCP) demand in column (e), and the average monthly coincident peak (CP) demand in column (f). For all other types of service, enter NA in columns (d), (e) and (f). Monthly NCP demand is the maximum metered hourly (60-minute integration) demand in a month. Monthly CP demand is the metered demand during the hour (60-minute integration) in which the supplier's system reaches its monthly peak. Demand reported in columns (e) and (f) must be in megawatts. Footnote any demand not stated on a megawatt basis and explain. Report in column (g) the megawatthours shown on bills rendered to the respondent, excluding purchases for energy storage. Report in column (h) the megawatthours shown on bills rendered to the respondent for energy storage purchases. Report in columns (i) and (j) the megawatthours of power exchanges received and delivered, used as the basis for settlement. Do not report net exchange. Report demand charges in column (k), energy charges in column (l), and the total of any other types of charges, including out-of-period adjustments, in column (m). Explain in a footnote all components of the amount shown in column (m). Report in column (n) the total charge shown on bills received as settlement by the respondent. For power exchanges, report in column (n) the settlement amount for the net receipt of energy. If more energy was delivered than received, enter a negative amount. If the settlement amount (m) include credits or charges other than incremental generation expenses, or (2) excludes certain credits or charges covered by the agreement, provide an explanatory footnote. The data in columns (g) through (n) must be totaled on the last line of the schedule. The total amount in columns (g) and (h) must be reported as Purchases on Page 401, line 10. The total amount in column (i) must be reported as Exchange Received on Page 401, line 12. The total amount in column (j) must be reported as Exchange Delivered on Page 401, line 13. Footnote entries as required and provide explanations following all required data.
					Actual Demand (MW)				POWER EXCHANGES		COST/SETTLEMENT OF POWER
Line No.	NameOfCompanyOrPublicAuthorityProvidingPurchasedPower Name of Company or Public Authority (Footnote Affiliations) (a)	StatisticalClassificationCode Statistical Classification (b)	RateScheduleTariffNumber Ferc Rate Schedule or Tariff Number (c)	AverageMonthlyBillingDemand Average Monthly Billing Demand (MW) (d)	AverageMonthlyNonCoincidentPeakDemand Average Monthly NCP Demand (e)	AverageMonthlyCoincidentPeakDemand Average Monthly CP Demand (f)	MegawattHoursPurchasedOtherThanStorage MegaWatt Hours Purchased (Excluding for Energy Storage) (g)	MegawattHoursPurchasedForEnergyStorage MegaWatt Hours Purchased for Energy Storage (h)	EnergyReceivedThroughPowerExchanges MegaWatt Hours Received (i)	EnergyDeliveredThroughPowerExchanges MegaWatt Hours Delivered (j)	DemandChargesOfPurchasedPower Demand Charges ($) (k)	EnergyChargesOfPurchasedPower Energy Charges ($) (l)	OtherChargesOfPurchasedPower Other Charges ($) (m)	SettlementOfPower Total (k+l+m) of Settlement ($) (n)
1	(a) Appalachian Power Company	RQ		281	281	277	1,938,878				41,868,277	(b) 89,933,202	13,310,470	145,111,949
15	TOTAL						1,938,878	0	0	0	41,868,277	89,933,202	13,310,470	145,111,949

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: NameOfCompanyOrPublicAuthorityProvidingPurchasedPower

An associated company.

(b) Concept: EnergyChargesOfPurchasedPower

Other Charges Include:.


Transmission Services and Related Charges	$	30,239,049
Over/Under for FPPA Rider	$	5,516,136

Total	$	35,755,185

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TRANSMISSION OF ELECTRICITY FOR OTHERS (Account 456.1) (Including transactions referred to as "wheeling")

Report all transmission of electricity, i.e., wheeling, provided for other electric utilities, cooperatives, other public authorities, qualifying facilities, non-traditional utility suppliers and ultimate customers for the quarter.
Use a separate line of data for each distinct type of transmission service involving the entities listed in column (a), (b) and (c).
Report in column (a) the company or public authority that paid for the transmission service. Report in column (b) the company or public authority that the energy was received from and in column (c) the company or public authority that the energy was delivered to. Provide the full name of each company or public authority. Do not abbreviate or truncate name or use acronyms. Explain in a footnote any ownership interest in or affiliation the respondent has with the entities listed in columns (a), (b) or (c).
In column (d) enter a Statistical Classification code based on the original contractual terms and conditions of the service as follows: FNO - Firm Network Service for Others, FNS - Firm Network Transmission Service for Self, LFP - "Long-Term Firm Point to Point Transmission Service, OLF - Other Long-Term Firm Transmission Service, SFP - Short-Term Firm Point to Point Transmission Reservation, NF - non-firm transmission service, OS - Other Transmission Service and AD - Out-of-Period Adjustments. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment. See General Instruction for definitions of codes.
In column (e), identify the FERC Rate Schedule or Tariff Number, On separate lines, list all FERC rate schedules or contract designations under which service, as identified in column (d), is provided.
Report receipt and delivery locations for all single contract path, "point to point" transmission service. In column (f), report the designation for the substation, or other appropriate identification for where energy was received as specified in the contract. In column (g) report the designation for the substation, or other appropriate identification for where energy was delivered as specified in the contract.
Report in column (h) the number of megawatts of billing demand that is specified in the firm transmission service contract. Demand reported in column (h) must be in megawatts. Footnote any demand not stated on a megawatts basis and explain.
Report in column (i) and (j) the total megawatthours received and delivered.
In column (k) through (n), report the revenue amounts as shown on bills or vouchers. In column (k), provide revenues from demand charges related to the billing demand reported in column (h). In column (I), provide revenues from energy charges related to the amount of energy transferred. In column (m), provide the total revenues from all other charges on bills or vouchers rendered, including out of period adjustments. Explain in a footnote all components of the amount shown in column (m). Report in column (n) the total charge shown on bills rendered to the entity Listed in column (a). If no monetary settlement was made, enter zero (0) in column (n). Provide a footnote explaining the nature of the non-monetary settlement, including the amount and type of energy or service rendered.
The total amounts in columns (i) and (j) must be reported as Transmission Received and Transmission Delivered for annual report purposes only on Page 401, Lines 16 and 17, respectively.
Footnote entries and provide explanations following all required data.

TRANSFER OF ENERGY

REVENUE FROM TRANSMISSION OF ELECTRICITY FOR OTHERS

Line No.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

1

PJM Network Integ Trans Rev Whlsle

Various

FNO

(a)

PJM OATT

Various

197,017

2

PJM Network Integ Trans Serv

Various

FNO

PJM OATT

Various

801,887

3

PJM Trans Enhancement Rev

Various

FNO

PJM OATT

Various

115,028

4

PJM Trans Enhancement Rev - Affil

Various

FNO

PJM OATT

Various

99,989

5

PJM Trans Enhancement Rev Whlsle

Various

FNO

PJM OATT

Various

3,692

6

PJM Network Integ Rev - Affil

Various

FNO

PJM OATT

Various

5,377,828

7

PJM Trans Owner Admin Revenue

Various

OLF

PJM OATT

Various

2,024

8

PJM Trans Owner Serv Rev Whlsle

Various

OLF

PJM OATT

Various

1,247

9

PJM Trans Owner Serv - Affil

Various

OLF

PJM OATT

Various

31,559

35

TOTAL

0

6,595,441

34,830

6,560,611

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: RateScheduleTariffNumber

Effective October 1, 2004, the administration of the transmission tariff was turned over to PJM. PJM does not provide any detail except for the total revenue by the major classes listed. OATT (Open Access Transmission Tariff) 3rd revised Volume No. 6

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TRANSMISSION OF ELECTRICITY BY ISO/RTOs
Report in Column (a) the Transmission Owner receiving revenue for the transmission of electricity by the ISO/RTO. Use a separate line of data for each distinct type of transmission service involving the entities listed in Column (a). In Column (b) enter a Statistical Classification code based on the original contractual terms and conditions of the service as follows: FNO – Firm Network Service for Others, FNS – Firm Network Transmission Service for Self, LFP – Long-Term Firm Point-to-Point Transmission Service, OLF – Other Long-Term Firm Transmission Service, SFP – Short-Term Firm Point-to-Point Transmission Reservation, NF – Non-Firm Transmission Service, OS – Other Transmission Service and AD- Out-of-Period Adjustments. Use this code for any accounting adjustments or “true-ups” for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment. See General Instruction for definitions of codes. In column (c) identify the FERC Rate Schedule or tariff Number, on separate lines, list all FERC rate schedules or contract designations under which service, as identified in column (b) was provided. In column (d) report the revenue amounts as shown on bills or vouchers. Report in column (e) the total revenues distributed to the entity listed in column (a).
Line No.	Payment Received by (Transmission Owner Name) (a)	Statistical Classification (b)	FERC Rate Schedule or Tariff Number (c)	Total Revenue by Rate Schedule or Tariff (d)	Total Revenue (e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
40	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TRANSMISSION OF ELECTRICITY BY OTHERS (Account 565)
Report all transmission, i.e. wheeling or electricity provided by other electric utilities, cooperatives, municipalities, other public authorities, qualifying facilities, and others for the quarter. In column (a) report each company or public authority that provided transmission service. Provide the full name of the company, abbreviate if necessary, but do not truncate name or use acronyms. Explain in a footnote any ownership interest in or affiliation with the transmission service provider. Use additional columns as necessary to report all companies or public authorities that provided transmission service for the quarter reported. In column (b) enter a Statistical Classification code based on the original contractual terms and conditions of the service as follows: FNS - Firm Network Transmission Service for Self, LFP - Long-Term Firm Point-to-Point Transmission Reservations. OLF - Other Long-Term Firm Transmission Service, SFP - Short-Term Firm Point-to- Point Transmission Reservations, NF - Non-Firm Transmission Service, and OS - Other Transmission Service. See General Instructions for definitions of statistical classifications. Report in column (c) and (d) the total megawatt hours received and delivered by the provider of the transmission service. Report in column (e), (f) and (g) expenses as shown on bills or vouchers rendered to the respondent. In column (e) report the demand charges and in column (f) energy charges related to the amount of energy transferred. On column (g) report the total of all other charges on bills or vouchers rendered to the respondent, including any out of period adjustments. Explain in a footnote all components of the amount shown in column (g). Report in column (h) the total charge shown on bills rendered to the respondent. If no monetary settlement was made, enter zero in column (h). Provide a footnote explaining the nature of the non-monetary settlement, including the amount and type of energy or service rendered. Enter ""TOTAL"" in column (a) as the last line. Footnote entries and provide explanations following all required data.
			TRANSFER OF ENERGY		EXPENSES FOR TRANSMISSION OF ELECTRICITY BY OTHERS
Line No.	NameOfCompanyOrPublicAuthorityTransmissionOfElectricityByOthers Name of Company or Public Authority (Footnote Affiliations) (a)	StatisticalClassificationCode Statistical Classification (b)	TransmissionOfElectricityByOthersEnergyReceived MegaWatt Hours Received (c)	TransmissionOfElectricityByOthersEnergyDelivered MegaWatt Hours Delivered (d)	DemandChargesTransmissionOfElectricityByOthers Demand Charges ($) (e)	EnergyChargesTransmissionOfElectricityByOthers Energy Charges ($) (f)	OtherChargesTransmissionOfElectricityByOthers Other Charges ($) (g)	ChargesForTransmissionOfElectricityByOthers Total Cost of Transmission ($) (h)
1	PJM NITS	OS					106	106
	TOTAL		0	0	0	0	106	106

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (ELECTRIC)
Line No.	Description (a)	Amount (b)
1	IndustryAssociationDues Industry Association Dues	48,947
2	NuclearPowerResearchExpenses Nuclear Power Research Expenses
3	OtherExperimentalAndGeneralResearchExpenses Other Experimental and General Research Expenses	62
4	PublicationAndDistributionExpensesForSecuritiesToStockholders Pub and Dist Info to Stkhldrs...expn servicing outstanding Securities
5	OtherMiscellaneousGeneralExpenses Oth Expn greater than or equal to 5,000 show purpose, recipient, amount. Group if less than $5,000
6	AEP Service Corporation Billings	4,653
7	Intercompany Billings	6,161
8	Associated Business Development Materials Sold
9	Associated Business Development Expenses	165,133
10	Corporate and Fiscal Expenses	7,497
11	Miscellaneous	4,953
46	MiscellaneousGeneralExpenses TOTAL	225,084

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Depreciation and Amortization of Electric Plant (Account 403, 404, 405)
Report in section A for the year the amounts for: (b) Depreciation Expense (Account 403); (c) Depreciation Expense for Asset Retirement Costs (Account 403.1); (d) Amortization of Limited-Term Electric Plant (Account 404); and (e) Amortization of Other Electric Plant (Account 405). Report in Section B the rates used to compute amortization charges for electric plant (Accounts 404 and 405). State the basis used to compute charges and whether any changes have been made in the basis or rates used from the preceding report year. Report all available information called for in Section C every fifth year beginning with report year 1971, reporting annually only changes to columns (c) through (g) from the complete report of the preceding year. Unless composite depreciation accounting for total depreciable plant is followed, list numerically in column (a) each plant subaccount, account or functional classification, as appropriate, to which a rate is applied. Identify at the bottom of Section C the type of plant included in any sub-account used. In column (b) report all depreciable plant balances to which rates are applied showing subtotals by functional Classifications and showing composite total. Indicate at the bottom of section C the manner in which column balances are obtained. If average balances, state the method of averaging used. For columns (c), (d), and (e) report available information for each plant subaccount, account or functional classification listed in column (a). If plant mortality studies are prepared to assist in estimating average service Lives, show in column (f) the type of mortality curve selected as most appropriate for the account and in column (g), if available, the weighted average remaining life of surviving plant. If composite depreciation accounting is used, report available information called for in columns (b) through (g) on this basis. If provisions for depreciation were made during the year in addition to depreciation provided by application of reported rates, state at the bottom of section C the amounts and nature of the provisions and the plant items to which related.
	A. Summary of Depreciation and Amortization Charges
Line No.	FunctionalClassificationAxis Functional Classification (a)	DepreciationExpenseExcludingAmortizationOfAcquisitionAdjustments Depreciation Expense (Account 403) (b)	DepreciationExpenseForAssetRetirementCostsExcludingAmortizationgOfAcquisitionAdjustments Depreciation Expense for Asset Retirement Costs (Account 403.1) (c)	AmortizationOfLimitedTermPlantOrProperty Amortization of Limited Term Electric Plant (Account 404) (d)	AmortizationOfOtherElectricPlant Amortization of Other Electric Plant (Acc 405) (e)	DepreciationAndAmortization Total (f)
1	Intangible Plant			1,339,751		1,339,751
2	Steam Production Plant
3	Nuclear Production Plant
4	Hydraulic Production Plant-Conventional
5	Hydraulic Production Plant-Pumped Storage
6	Other Production Plant
7	Transmission Plant	912,854				912,854
8	Distribution Plant	7,058,301				7,058,301
9	Regional Transmission and Market Operation
10	General Plant	270,106	4,696	559		275,361
11	Common Plant-Electric
12	TOTAL	8,241,261	4,696	1,340,310		9,586,267

B. Basis for Amortization Charges
Section A Line 1 Column D represents amortization of capitalized software development costs over a 5 year life and costs associated with the Oracle strategic partnership which are over a 10 year life. Section A, Line 10, Column D represents amortization of leasehold improvements over the lives of the related assets.

	C. Factors Used in Estimating Depreciation Charges
Line No.	AccountNumberFactorsUsedInEstimatingDepreciationCharges Account No. (a)	DepreciablePlantBase Depreciable Plant Base (in Thousands) (b)	UtilityPlantEstimatedAverageServiceLife Estimated Avg. Service Life (c)	UtilityPlantNetSalvageValuePercentage Net Salvage (Percent) (d)	UtilityPlantAppliedDepreciationRate Applied Depr. Rates (Percent) (e)	MortalityCurveType Mortality Curve Type (f)	UtilityPlantWeightedAverageRemainingLife Average Remaining Life (g)
12	TRANSMISSION
13	350 (Rights)
14	352	1,322	60 years	20	1.96	R3
15	353	34,700	43 years	10	2.56	R2
16	353.16	978	43 years	10	2.56	R2
17	354	3,198	75 years	19	0.67	R4
18	355	7,503	37 years	20	3.08	L1.5
19	356	5,025	68 years	8	1.33	R4
20	356.16	45	68 years	8	1.33	R4
21	TOTAL TRANSMISSION	52,771
22	DISTRIBUTION
23	360 (Rights)
24	361	6,504	50 years	10	2.22	R5
25	362	35,159	50 years	19	2.33	L0.5
26	362.16	409	50 years	19	2.33	L0.5
27	364	33,455	40 years	72	3.55	R0.5
28	365	49,731	35 years	18	3.46	R0.5
29	366	7,723	57 years		1.49	R4
30	367	11,092	51 years		2.14	R2.5
31	368	31,260	35 years	21	2.74	L0
32	369	14,286	35 years	28	3.46	L1.5
33	370	1,586	15 years	6	9.05	L1
34	370.16	5,105	15 years	6	9.05	L1
35	371	2,925	16 years	21	2.72	L0
36	373	9,420	23 years	33	5.42	R0.5
37	TOTAL DISTRIBUTION	208,655
38	GENERAL PLANT
39	390	4,903	45 years	8	1.91	R2.5
40	391	153	35 years		2.88	SQ
41	393	32	45 years		2.29	SQ
42	394	1,657	35 years	10	3.09	SQ
43	395	26	30 years		2.28	SQ
44	397	2,072	30 years	8	3.77	SQ
45	397.16	880	30 years	8	3.77	SQ
46	398	276	20 years		5.15	SQ
47	TOTAL GENERAL PLANT	9,999
48	DEPRECIABLE SUM	(a) 271,425

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: DepreciablePlantBase


Schedule Page: 336 Line No.: 49 Column: b

The depreciable plant base is the November 30, 2022 total company depreciable plant.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

REGULATORY COMMISSION EXPENSES
Report particulars (details) of regulatory commission expenses incurred during the current year (or incurred in previous years, if being amortized) relating to format cases before a regulatory body, or cases in which such a body was a party. Report in columns (b) and (c), only the current year's expenses that are not deferred and the current year's amortization of amounts deferred in previous years. Show in column (k) any expenses incurred in prior years which are being amortized. List in column (a) the period of amortization. List in columns (f), (g), and (h), expenses incurred during the year which were charged currently to income, plant, or other accounts. Minor items (less than $25,000) may be grouped.
						EXPENSES INCURRED DURING YEAR				AMORTIZED DURING YEAR
						CURRENTLY CHARGED TO
Line No.	RegulatoryCommissionDescription Description (Furnish name of regulatory commission or body the docket or case number and a description of the case) (a)	RegulatoryExpensesAssessedByRegulatoryCommission Assessed by Regulatory Commission (b)	RegulatoryExpensesOfUtility Expenses of Utility (c)	RegulatoryCommissionExpensesAmount Total Expenses for Current Year (d)	OtherRegulatoryAssetsRegulatoryCommissionExpenses Deferred in Account 182.3 at Beginning of Year (e)	NameOfDepartmentRegulatoryCommissionExpensesCharged Department (f)	AccountNumberRegulatoryCommissionExpensesCharged Account No. (g)	RegulatoryComissionExpensesIncurredAndCharged Amount (h)	RegulatoryCommissionExpensesDeferredToOtherRegulatoryAssets Deferred to Account 182.3 (i)	DeferredRegulatoryCommissionExpensesAmortizedInContraAccount Contra Account (j)	DeferredRegulatoryCommissionExpensesAmortized Amount (k)	OtherRegulatoryAssetsRegulatoryCommissionExpenses Deferred in Account 182.3 End of Year (l)
1	Kingsport Rate Case		144,978	144,978	363,075		928	77,941	464,984	928	67,037	761,022
2	Amortization 09/2016 - 08/2021
3	per TN Docket 16-00001
4	Minor Items < $25,000		2,226	2,226			928	2,226
5	State Commission Fees		647,954	647,954			928	647,954
46	TOTAL		795,158	795,158	363,075			728,121	464,984		67,037	761,022

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACTIVITIES
Describe and show below costs incurred and accounts charged during the year for technological research, development, and demonstration (R, D and D) project initiated, continued or concluded during the year. Report also support given to others during the year for jointly-sponsored projects.(Identify recipient regardless of affiliation.) For any R, D and D work carried with others, show separately the respondent's cost for the year and cost chargeable to others (See definition of research, development, and demonstration in Uniform System of Accounts). Indicate in column (a) the applicable classification, as shown below: Classifications: Electric R, D and D Performed Internally: Generation hydroelectric Recreation fish and wildlife Other hydroelectric Fossil-fuel steam Internal combustion or gas turbine Nuclear Unconventional generation Siting and heat rejection Transmission Overhead Underground Distribution Regional Transmission and Market Operation Environment (other than equipment) Other (Classify and include items in excess of $50,000.) Total Cost Incurred Electric, R, D and D Performed Externally: Research Support to the electrical Research Council or the Electric Power Research Institute Research Support to Edison Electric Institute Research Support to Nuclear Power Groups Research Support to Others (Classify) Total Cost Incurred Include in column (c) all R, D and D items performed internally and in column (d) those items performed outside the company costing $50,000 or more, briefly describing the specific area of R, D and D (such as safety, corrosion control, pollution, automation, measurement, insulation, type of appliance, etc.). Group items under $50,000 by classifications and indicate the number of items grouped. Under Other, (A (6) and B (4)) classify items by type of R, D and D activity. Show in column (e) the account number charged with expenses during the year or the account to which amounts were capitalized during the year, listing Account 107, Construction Work in Progress, first. Show in column (f) the amounts related to the account charged in column (e). Show in column (g) the total unamortized accumulating of costs of projects. This total must equal the balance in Account 188, Research, Development, and Demonstration Expenditures, Outstanding at the end of the year. If costs have not been segregated for R, D and D activities or projects, submit estimates for columns (c), (d), and (f) with such amounts identified by ""Est."" Report separately research and related testing facilities operated by the respondent.
					AMOUNTS CHARGED IN CURRENT YEAR
Line No.	ResearchDevelopmentAndDemonstrationClassification Classification (a)	ResearchDevelopmentAndDemonstrationDescription Description (b)	ResearchDevelopmentAndDemonstrationCostsIncurredInternally Costs Incurred Internally Current Year (c)	ResearchDevelopmentAndDemonstrationCostsIncurredExternally Costs Incurred Externally Current Year (d)	AccountNumberForResearchDevelopmentAndDemonstrationCosts Amounts Charged In Current Year: Account (e)	ResearchDevelopmentAndDemonstrationCosts Amounts Charged In Current Year: Amount (f)	ResearchDevelopmentAndDemonstrationExpenditures Unamortized Accumulation (g)
1	PERFORMED INTERNALLY
2	A(2) Transmission	1 item under $50,000	116		566	116
3	A(3) Distribution	1 items under $50,000	771		588	771
4	A(6) Other	2 items under $50,000	889		566,588	889
5	A(6)f AMI Test Bed Development	1 item under $50,000	105		588	105
6	A(6)g DTC Walnut Maintenance	1 item under $50,000	158		566,588	158
7	A(7) TOTAL COST INCURRED INTERNALLY		2,039			2,039
8	PERFORMED EXTERNALLY
9	B: Electric R, D & D Externally	5 items under $50,000		2,907	566,588	2,907
10	B(1) Research Support to Elec. Research Council or Elec. Power Research Inst.	10 items under $50,000		18,103	566,588	18,103
11	B(4) Steam Power
12	B(5) TOTAL COST INCURRED EXTERNALLY			21,010		21,010

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

DISTRIBUTION OF SALARIES AND WAGES
Report below the distribution of total salaries and wages for the year. Segregate amounts originally charged to clearing accounts to Utility Departments, Construction, Plant Removals, and Other Accounts, and enter such amounts in the appropriate lines and columns provided. In determining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation giving substantially correct results may be used.
Line No.	Classification (a)	Direct Payroll Distribution (b)	Allocation of Payroll Charged for Clearing Accounts (c)	Total (d)
1	SalariesAndWagesElectricAbstract Electric
2	SalariesAndWagesElectricOperationAbstract Operation
3	SalariesAndWagesElectricOperationProduction Production
4	SalariesAndWagesElectricOperationTransmission Transmission	346
5	SalariesAndWagesElectricOperationRegionalMarket Regional Market
6	SalariesAndWagesElectricOperationDistribution Distribution	402,848
7	SalariesAndWagesElectricOperationCustomerAccounts Customer Accounts	261,008
8	SalariesAndWagesElectricOperationCustomerServiceAndInformational Customer Service and Informational	78,809
9	SalariesAndWagesElectricOperationSales Sales
10	SalariesAndWagesElectricOperationAdministrativeAndGeneral Administrative and General	187,424
11	SalariesAndWagesElectricOperation TOTAL Operation (Enter Total of lines 3 thru 10)	555,587
12	SalariesAndWagesElectricMaintenanceAbstract Maintenance
13	SalariesAndWagesElectricMaintenanceProduction Production
14	SalariesAndWagesElectricMaintenanceTransmission Transmission	1,262
15	SalariesAndWagesElectricMaintenanceRegionalMarket Regional Market
16	SalariesAndWagesElectricMaintenanceDistribution Distribution	1,632,067
17	SalariesAndWagesElectricMaintenanceAdministrativeAndGeneral Administrative and General	39,107
18	SalariesAndWagesElectricMaintenance TOTAL Maintenance (Total of lines 13 thru 17)	1,672,436
19	SalariesAndWagesElectricOperationAndMaintenanceAbstract Total Operation and Maintenance
20	SalariesAndWagesElectricProduction Production (Enter Total of lines 3 and 13)
21	SalariesAndWagesElectricTransmission Transmission (Enter Total of lines 4 and 14)	1,608
22	SalariesAndWagesElectricRegionalMarket Regional Market (Enter Total of Lines 5 and 15)
23	SalariesAndWagesElectricDistribution Distribution (Enter Total of lines 6 and 16)	2,034,915
24	SalariesAndWagesElectricCustomerAccounts Customer Accounts (Transcribe from line 7)	261,008
25	SalariesAndWagesElectricCustomerServiceAndInformational Customer Service and Informational (Transcribe from line 8)	78,809
26	SalariesAndWagesElectricSales Sales (Transcribe from line 9)
27	SalariesAndWagesElectricAdministrativeAndGeneral Administrative and General (Enter Total of lines 10 and 17)	148,317
28	SalariesAndWagesElectricOperationAndMaintenance TOTAL Oper. and Maint. (Total of lines 20 thru 27)	2,228,023	148,108	2,376,131
29	SalariesAndWagesGasAbstract Gas
30	SalariesAndWagesGasOperationAbstract Operation
31	SalariesAndWagesGasOperationProductionManufacturedGas Production - Manufactured Gas
32	SalariesAndWagesGasOperationProductionNaturalGas Production-Nat. Gas (Including Expl. And Dev.)
33	SalariesAndWagesGasOperationOtherGasSupply Other Gas Supply
34	SalariesAndWagesGasOperationStorageLiquifiedNaturalGasTerminalingAndProcessing Storage, LNG Terminaling and Processing
35	SalariesAndWagesGasOperationTransmission Transmission
36	SalariesAndWagesGasOperationDistribution Distribution
37	SalariesAndWagesGasCustomerAccounts Customer Accounts
38	SalariesAndWagesGasCustomerServiceAndInformational Customer Service and Informational
39	SalariesAndWagesGasSales Sales
40	SalariesAndWagesGasOperationAdministrativeAndGeneral Administrative and General
41	SalariesAndWagesGasOperation TOTAL Operation (Enter Total of lines 31 thru 40)
42	SalariesAndWagesGasMaintenanceAbstract Maintenance
43	SalariesAndWagesGasMaintenanceProductionManufacturedGas Production - Manufactured Gas
44	SalariesAndWagesGasMaintenanceProductionNaturalGas Production-Natural Gas (Including Exploration and Development)
45	SalariesAndWagesGasMaintenanceOtherGasSupply Other Gas Supply
46	SalariesAndWagesGasMaintenanceStorageLngTerminalingAndProcessing Storage, LNG Terminaling and Processing
47	SalariesAndWagesGasMaintenanceTransmission Transmission
48	SalariesAndWagesGasMaintenanceDistribution Distribution
49	SalariesAndWagesGasMaintenanceAdministrativeAndGeneral Administrative and General
50	SalariesAndWagesGasMaintenance TOTAL Maint. (Enter Total of lines 43 thru 49)
51	SalariesAndWagesGasOperationAndMaintenanceAbstract Total Operation and Maintenance
52	SalariesAndWagesGasProductionManufacturedGas Production-Manufactured Gas (Enter Total of lines 31 and 43)
53	SalariesAndWagesGasProductionNaturalGas Production-Natural Gas (Including Expl. and Dev.) (Total lines 32,
54	SalariesAndWagesGasOtherGasSupply Other Gas Supply (Enter Total of lines 33 and 45)
55	SalariesAndWagesGasStorageLngTerminalingAndProcessing Storage, LNG Terminaling and Processing (Total of lines 31 thru
56	SalariesAndWagesGasTransmission Transmission (Lines 35 and 47)
57	SalariesAndWagesGasDistribution Distribution (Lines 36 and 48)
58	SalariesAndWagesGasCustomerAccounts Customer Accounts (Line 37)
59	SalariesAndWagesGasCustomerServiceAndInformational Customer Service and Informational (Line 38)
60	SalariesAndWagesGasSales Sales (Line 39)
61	SalariesAndWagesGasAdministrativeAndGeneral Administrative and General (Lines 40 and 49)
62	SalariesAndWagesGasOperationAndMaintenance TOTAL Operation and Maint. (Total of lines 52 thru 61)
63	SalariesAndWagesOtherUtilityDepartmentsAbstract Other Utility Departments
64	SalariesAndWagesOtherUtilityDepartmentsOperationAndMaintenance Operation and Maintenance
65	SalariesAndWagesOperationsAndMaintenance TOTAL All Utility Dept. (Total of lines 28, 62, and 64)	2,228,023	148,108	2,376,131
66	SalariesAndWagesUtilityPlantAbstract Utility Plant
67	SalariesAndWagesUtilityPlantConstructionAbstract Construction (By Utility Departments)
68	SalariesAndWagesUtilityPlantConstructionElectricPlant Electric Plant	2,630,423	174,857	2,805,280
69	SalariesAndWagesUtilityPlantConstructionGasPlant Gas Plant
70	SalariesAndWagesUtilityPlantConstructionOther Other (provide details in footnote):
71	SalariesAndWagesUtilityPlantConstruction TOTAL Construction (Total of lines 68 thru 70)	2,630,423	174,857	2,805,280
72	SalariesAndWagesPlantRemovalAbstract Plant Removal (By Utility Departments)
73	SalariesAndWagesPlantRemovalElectricPlant Electric Plant	474,620	31,550	506,170
74	SalariesAndWagesPlantRemovalGasPlant Gas Plant
75	SalariesAndWagesPlantRemovalOther Other (provide details in footnote):
76	SalariesAndWagesPlantRemoval TOTAL Plant Removal (Total of lines 73 thru 75)	474,620	31,550	506,170
77	SalariesAndWagesOtherAccountsAbstract Other Accounts (Specify, provide details in footnote):
78	SalariesAndWagesOtherAccountsDescription Other Accounts (Specify, provide details in footnote):
79	SalariesAndWagesOtherAccountsDescription 163 - Stores Expense Undistributed	188,866	188,866
80	SalariesAndWagesOtherAccountsDescription 165 - Other Prepayments
81	SalariesAndWagesOtherAccountsDescription 182 - Other Regulatory Assets
82	SalariesAndWagesOtherAccountsDescription 183 - Prelim Survey
83	SalariesAndWagesOtherAccountsDescription 184 - Clearing Accounts	165,649	165,649
84	SalariesAndWagesOtherAccountsDescription 185 - ODD Temporary Facilities	18,280		18,280
85	SalariesAndWagesOtherAccountsDescription 186 - Misc Deferred Debits	20,901		20,901
86	SalariesAndWagesOtherAccountsDescription 188 - Research & Development
87	SalariesAndWagesOtherAccountsDescription 401 - Operation Expense - Nonassociated
88	SalariesAndWagesOtherAccountsDescription 402 - Maintenance Exp
89	SalariesAndWagesOtherAccountsDescription 407 - Regulatory Debits
90	SalariesAndWagesOtherAccountsDescription 417 - Misc Exp
91	SalariesAndWagesOtherAccountsDescription 418 - Nonoperating Rental Income
92	SalariesAndWagesOtherAccountsDescription 421 - Misc Nonoperating Income
93	SalariesAndWagesOtherAccountsDescription 426 - Political Activities	1,021		1,021
94	SalariesAndWagesOtherAccountsDescription 451 - Misc Service Rev - Nonaffil
95	SalariesAndWagesOtherAccountsDescription 456 - Other Electric Revenue
95	SalariesAndWagesOtherAccounts TOTAL Other Accounts	394,717	354,515	40,202
96	SalariesAndWagesGeneralExpense TOTAL SALARIES AND WAGES	5,727,783		5,727,783

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

COMMON UTILITY PLANT AND EXPENSES
Describe the property carried in the utility's accounts as common utility plant and show the book cost of such plant at end of year classified by accounts as provided by Electric Plant Instruction 13, Common Utility Plant, of the Uniform System of Accounts. Also show the allocation of such plant costs to the respective departments using the common utility plant and explain the basis of allocation used, giving the allocation factors. Furnish the accumulated provisions for depreciation and amortization at end of year, showing the amounts and classifications of such accumulated provisions, and amounts allocated to utility departments using the common utility plant to which such accumulated provisions relate, including explanation of basis of allocation and factors used. Give for the year the expenses of operation, maintenance, rents, depreciation, and amortization for common utility plant classified by accounts as provided by the Uniform System of Accounts. Show the allocation of such expenses to the departments using the common utility plant to which such expenses are related. Explain the basis of allocation used and give the factors of allocation. Give date of approval by the Commission for use of the common utility plant classification and reference to the order of the Commission or other authorization.

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

AMOUNTS INCLUDED IN ISO/RTO SETTLEMENT STATEMENTS
The respondent shall report below the details called for concerning amounts it recorded in Account 555, Purchase Power, and Account 447, Sales for Resale, for items shown on ISO/RTO Settlement Statements. Transactions should be separately netted for each ISO/RTO administered energy market for purposes of determining whether an entity is a net seller or purchaser in a given hour. Net megawatt hours are to be used as the basis for determining whether a net purchase or sale has occurred. In each monthly reporting period, the hourly sale and purchase net amounts are to be aggregated and separately reported in Account 447, Sales for Resale, or Account 555, Purchased Power, respectively.
Line No.	Description of Item(s) (a)	Balance at End of Quarter 1 (b)	Balance at End of Quarter 2 (c)	Balance at End of Quarter 3 (d)	Balance at End of Year (e)
1	Energy
2	Net Purchases (Account 555)
2.1	Net Purchases (Account 555.1)
3	Net Sales (Account 447)
4	Transmission Rights
5	Ancillary Services
6	Other Items (list separately)
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46	TOTAL

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

PURCHASES AND SALES OF ANCILLARY SERVICES
Report the amounts for each type of ancillary service shown in column (a) for the year as specified in Order No. 888 and defined in the respondents Open Access Transmission Tariff. In columns for usage, report usage-related billing determinant and the unit of measure. On Line 1 columns (b), (c), (d), and (e) report the amount of ancillary services purchased and sold during the year. On Line 2 columns (b), (c), (d), and (e) report the amount of reactive supply and voltage control services purchased and sold during the year. On Line 3 columns (b), (c), (d), and (e) report the amount of regulation and frequency response services purchased and sold during the year. On Line 4 columns (b), (c), (d), and (e) report the amount of energy imbalance services purchased and sold during the year. On Lines 5 and 6, columns (b), (c), (d), and (e) report the amount of operating reserve spinning and supplement services purchased and sold during the period. On Line 7 columns (b), (c), (d), and (e) report the total amount of all other types ancillary services purchased or sold during the year. Include in a footnote and specify the amount for each type of other ancillary service provided.
		Amount Purchased for the Year			Amount Sold for the Year
		Usage - Related Billing Determinant			Usage - Related Billing Determinant
Line No.	Type of Ancillary Service (a)	Number of Units (b)	Unit of Measure (c)	Dollar (d)	Number of Units (e)	Unit of Measure (f)	Dollars (g)
1	Scheduling, System Control and Dispatch
2	Reactive Supply and Voltage
3	Regulation and Frequency Response
4	Energy Imbalance
5	Operating Reserve - Spinning
6	Operating Reserve - Supplement
7	Other
8	Total (Lines 1 thru 7)

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

MONTHLY TRANSMISSION SYSTEM PEAK LOAD
Report the monthly peak load on the respondent's transmission system. If the respondent has two or more power systems which are not physically integrated, furnish the required information for each non-integrated system. Report on Column (b) by month the transmission system's peak load. Report on Columns (c ) and (d) the specified information for each monthly transmission - system peak load reported on Column (b). Report on Columns (e) through (j) by month the system' monthly maximum megawatt load by statistical classifications. See General Instruction for the definition of each statistical classification.
Line No.	Month (a)	Monthly Peak MW - Total (b)	Day of Monthly Peak (c)	Hour of Monthly Peak (d)	Firm Network Service for Self (e)	Firm Network Service for Others (f)	Long-Term Firm Point-to-point Reservations (g)	Other Long-Term Firm Service (h)	Short-Term Firm Point-to-point Reservation (i)	Other Service (j)
	NAME OF SYSTEM: 0
1	January
2	February
3	March
4	Total for Quarter 1				0	0	0	0	0	0
5	April
6	May
7	June
8	Total for Quarter 2				0	0	0	0	0	0
9	July
10	August
11	September
12	Total for Quarter 3				0	0	0	0	0	0
13	October
14	November
15	December
16	Total for Quarter 4				0	0	0	0	0	0
17	Total				0	0	0	0	0	0

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Monthly ISO/RTO Transmission System Peak Load
Report the monthly peak load on the respondent's transmission system. If the Respondent has two or more power systems which are not physically integrated, furnish the required information for each non-integrated system. Report on Column (b) by month the transmission system's peak load. Report on Column (c) and (d) the specified information for each monthly transmission - system peak load reported on Column (b). Report on Columns (e) through (i) by month the system’s transmission usage by classification. Amounts reported as Through and Out Service in Column (g) are to be excluded from those amounts reported in Columns (e) and (f). Amounts reported in Column (j) for Total Usage is the sum of Columns (h) and (i).
Line No.	Month (a)	Monthly Peak MW - Total (b)	Day of Monthly Peak (c)	Hour of Monthly Peak (d)	Import into ISO/RTO (e)	Exports from ISO/RTO (f)	Through and Out Service (g)	Network Service Usage (h)	Point-to-Point Service Usage (i)	Total Usage (j)
	NAME OF SYSTEM: 0
1	January
2	February
3	March
4	Total for Quarter 1				0	0	0	0	0	0
5	April
6	May
7	June
8	Total for Quarter 2				0	0	0	0	0	0
9	July
10	August
11	September
12	Total for Quarter 3				0	0	0	0	0	0
13	October
14	November
15	December
16	Total for Quarter 4				0	0	0	0	0	0
17	Total Year to Date/Year				0	0	0	0	0	0

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

2023-04-12

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC ENERGY ACCOUNT
Report below the information called for concerning the disposition of electric energy generated, purchased, exchanged and wheeled during the year.
Line No.	Item (a)	MegaWatt Hours (b)	Line No.	Item (a)	MegaWatt Hours (b)
1	SOURCES OF ENERGY		21	DISPOSITION OF ENERGY
2	Generation (Excluding Station Use):		22	Sales to Ultimate Consumers (Including Interdepartmental Sales)	1,866,778
3	Steam		23	Requirements Sales for Resale (See instruction 4, page 311.)
4	Nuclear		24	Non-Requirements Sales for Resale (See instruction 4, page 311.)
5	Hydro-Conventional		25	Energy Furnished Without Charge
6	Hydro-Pumped Storage		26	Energy Used by the Company (Electric Dept Only, Excluding Station Use)
7	Other		27	Total Energy Losses	72,100
8	Less Energy for Pumping		27.1	Total Energy Stored
9	Net Generation (Enter Total of lines 3 through 8)	0	28	TOTAL (Enter Total of Lines 22 Through 27.1) MUST EQUAL LINE 20 UNDER SOURCES	1,938,878
10	Purchases (other than for Energy Storage)	1,938,878
10.1	Purchases for Energy Storage	0
11	Power Exchanges:
12	Received	0
13	Delivered	0
14	Net Exchanges (Line 12 minus line 13)	0
15	Transmission For Other (Wheeling)
16	Received
17	Delivered
18	Net Transmission for Other (Line 16 minus line 17)	0
19	Transmission By Others Losses
20	TOTAL (Enter Total of Lines 9, 10, 10.1, 14, 18 and 19)	1,938,878

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

MONTHLY PEAKS AND OUTPUT
Report the monthly peak load and energy output. If the respondent has two or more power which are not physically integrated, furnish the required information for each non- integrated system. Report in column (b) by month the system’s output in Megawatt hours for each month. Report in column (c) by month the non-requirements sales for resale. Include in the monthly amounts any energy losses associated with the sales. Report in column (d) by month the system’s monthly maximum megawatt load (60 minute integration) associated with the system. Report in column (e) and (f) the specified information for each monthly peak load reported in column (d).
Line No.	MonthAxis Month (a)	EnergyActivity Total Monthly Energy (b)	NonRequiredSalesForResaleEnergy Monthly Non-Requirement Sales for Resale & Associated Losses (c)	MonthlyPeakLoad Monthly Peak - Megawatts (d)	DayOfMonthlyPeak Monthly Peak - Day of Month (e)	HourOfMonthlyPeak Monthly Peak - Hour (f)
	NAME OF SYSTEM: 0
29	January	202,068		364	27	8
30	February	162,410		351	1	8
31	March	157,947		314	14	8
32	April	140,836		256	19	8
33	May	141,802		281	20	6
34	June	159,633		315	15	5
35	July	169,358		323	22	6
36	August	166,599		310	3	5
37	September	144,869		284	21	6
38	October	135,152		282	20	8
39	November	155,061		344	21	8
40	December	203,143		498	23	9
41	Total	1,938,878	0

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Steam Electric Generating Plant Statistics

1. Report data for plant in Service only.
2. Large plants are steam plants with installed capacity (name plate rating) of 25,000 Kw or more. Report in this page gas-turbine and internal combustion plants of 10,000 Kw or more, and nuclear plants.
3. Indicate by a footnote any plant leased or operated as a joint facility.
4. If net peak demand for 60 minutes is not available, give data which is available, specifying period.
5. If any employees attend more than one plant, report on line 11 the approximate average number of employees assignable to each plant.
6. If gas is used and purchased on a therm basis report the Btu content or the gas and the quantity of fuel burned converted to Mct.
7. Quantities of fuel burned (Line 38) and average cost per unit of fuel burned (Line 41) must be consistent with charges to expense accounts 501 and 547 (Line 42) as show on Line 20.
8. If more than one fuel is burned in a plant furnish only the composite heat rate for all fuels burned.
9. Items under Cost of Plant are based on USofA accounts. Production expenses do not include Purchased Power, System Control and Load Dispatching, and Other Expenses Classified as Other Power Supply Expenses.
10. For IC and GT plants, report Operating Expenses, Account Nos. 547 and 549 on Line 25 "Electric Expenses," and Maintenance Account Nos. 553 and 554 on Line 32, "Maintenance of Electric Plant." Indicate plants designed for peak load service. Designate automatically operated plants.
11. For a plant equipped with combinations of fossil fuel steam, nuclear steam, hydro, internal combustion or gas-turbine equipment, report each as a separate plant. However, if a gas-turbine unit functions in a combined cycle operation with a conventional steam unit, include the gas-turbine with the steam plant.
12. If a nuclear power generating plant, briefly explain by footnote (a) accounting method for cost of power generated including any excess costs attributed to research and development; (b) types of cost units used for the various components of fuel cost; and (c) any other informative data concerning plant type fuel used, fuel enrichment type and quantity for the report period and other physical and operating characteristics of plant.

Line No.	Item (a)	Plant Name: 0
1	PlantKind Kind of Plant (Internal Comb, Gas Turb, Nuclear)
2	PlantConstructionType Type of Constr (Conventional, Outdoor, Boiler, etc)
3	YearPlantOriginallyConstructed Year Originally Constructed
4	YearLastUnitOfPlantInstalled Year Last Unit was Installed
5	InstalledCapacityOfPlant Total Installed Cap (Max Gen Name Plate Ratings-MW)
6	NetPeakDemandOnPlant Net Peak Demand on Plant - MW (60 minutes)
7	PlantHoursConnectedToLoad Plant Hours Connected to Load
8	NetContinuousPlantCapability Net Continuous Plant Capability (Megawatts)
9	NetContinuousPlantCapabilityNotLimitedByCondenserWater When Not Limited by Condenser Water
10	NetContinuousPlantCapabilityLimitedByCondenserWater When Limited by Condenser Water
11	PlantAverageNumberOfEmployees Average Number of Employees
12	NetGenerationExcludingPlantUse Net Generation, Exclusive of Plant Use - kWh
13	CostOfLandAndLandRightsSteamProduction Cost of Plant: Land and Land Rights
14	CostOfStructuresAndImprovementsSteamProduction Structures and Improvements
15	CostOfEquipmentSteamProduction Equipment Costs
16	AssetRetirementCostsSteamProduction Asset Retirement Costs
17	CostOfPlant Total cost (total 13 thru 20)
18	CostPerKilowattOfInstalledCapacity Cost per KW of Installed Capacity (line 17/5) Including
19	OperationSupervisionAndEngineeringExpense Production Expenses: Oper, Supv, & Engr
20	FuelSteamPowerGeneration Fuel
21	CoolantsAndWater Coolants and Water (Nuclear Plants Only)
22	SteamExpensesSteamPowerGeneration Steam Expenses
23	SteamFromOtherSources Steam From Other Sources
24	SteamTransferredCredit Steam Transferred (Cr)
25	ElectricExpensesSteamPowerGeneration Electric Expenses
26	MiscellaneousSteamPowerExpenses Misc Steam (or Nuclear) Power Expenses
27	RentsSteamPowerGeneration Rents
28	Allowances Allowances
29	MaintenanceSupervisionAndEngineeringSteamPowerGeneration Maintenance Supervision and Engineering
30	MaintenanceOfStructuresSteamPowerGeneration Maintenance of Structures
31	MaintenanceOfBoilerPlantSteamPowerGeneration Maintenance of Boiler (or reactor) Plant
32	MaintenanceOfElectricPlantSteamPowerGeneration Maintenance of Electric Plant
33	MaintenanceOfMiscellaneousSteamPlant Maintenance of Misc Steam (or Nuclear) Plant
34	PowerProductionExpensesSteamPower Total Production Expenses	0
35	ExpensesPerNetKilowattHour Expenses per Net kWh	0.000

35	FuelKindAxis Plant Name
36	FuelKind Fuel Kind
37	FuelUnit Fuel Unit
38	QuantityOfFuelBurned Quantity (Units) of Fuel Burned
39	FuelBurnedAverageHeatContent Avg Heat Cont - Fuel Burned (btu/indicate if nuclear)
40	AverageCostOfFuelPerUnitAsDelivered Avg Cost of Fuel/unit, as Delvd f.o.b. during year
41	AverageCostOfFuelPerUnitBurned Average Cost of Fuel per Unit Burned
42	AverageCostOfFuelBurnedPerMillionBritishThermalUnit Average Cost of Fuel Burned per Million BTU
43	AverageCostOfFuelBurnedPerKilowattHourNetGeneration Average Cost of Fuel Burned per kWh Net Gen
44	AverageBritishThermalUnitPerKilowattHourNetGeneration Average BTU per kWh Net Generation

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Hydroelectric Generating Plant Statistics

Large plants are hydro plants of 10,000 Kw or more of installed capacity (name plate ratings).
If any plant is leased, operated under a license from the Federal Energy Regulatory Commission, or operated as a joint facility, indicate such facts in a footnote. If licensed project, give project number.
If net peak demand for 60 minutes is not available, give that which is available specifying period.
If a group of employees attends more than one generating plant, report on line 11 the approximate average number of employees assignable to each plant.
The items under Cost of Plant represent accounts or combinations of accounts prescribed by the Uniform System of Accounts. Production Expenses do not include Purchased Power, System control and Load Dispatching, and Other Expenses classified as "Other Power Supply Expenses."
Report as a separate plant any plant equipped with combinations of steam, hydro, internal combustion engine, or gas turbine equipment.

Line No.	Item (a)	FERC Licensed Project No. 0 Plant Name: 0
1	PlantKind Kind of Plant (Run-of-River or Storage)
2	PlantConstructionType Plant Construction type (Conventional or Outdoor)
3	YearPlantOriginallyConstructed Year Originally Constructed
4	YearLastUnitOfPlantInstalled Year Last Unit was Installed
5	InstalledCapacityOfPlant Total installed cap (Gen name plate Rating in MW)	0.00
6	NetPeakDemandOnPlant Net Peak Demand on Plant-Megawatts (60 minutes)	0
7	PlantHoursConnectedToLoad Plant Hours Connect to Load	0
8	NetPlantCapabilityAbstract Net Plant Capability (in megawatts)
9	NetPlantCapabilityUnderMostFavorableOperatingConditions (a) Under Most Favorable Oper Conditions	0
10	NetPlantCapabilityUnderMostAdverseOperatingConditions (b) Under the Most Adverse Oper Conditions	0
11	PlantAverageNumberOfEmployees Average Number of Employees	0
12	NetGenerationExcludingPlantUse Net Generation, Exclusive of Plant Use - kWh	0
13	CostOfPlantAbstract Cost of Plant
14	CostOfLandAndLandRightsHydroelectricProduction Land and Land Rights	0
15	CostOfStructuresAndImprovementsHydroelectricProduction Structures and Improvements	0
16	CostOfReservoirsDamsAndWaterwaysHydroelectricProduction Reservoirs, Dams, and Waterways	0
17	EquipmentCostsHydroelectricProduction Equipment Costs	0
18	CostOfRoadsRailroadsAndBridgesHydroelectricProduction Roads, Railroads, and Bridges	0
19	AssetRetirementCostsHydroelectricProduction Asset Retirement Costs	0
20	CostOfPlant Total cost (total 13 thru 20)
21	CostPerKilowattOfInstalledCapacity Cost per KW of Installed Capacity (line 20 / 5)
22	ProductionExpensesAbstract Production Expenses
23	OperationSupervisionAndEngineeringExpense Operation Supervision and Engineering	0
24	WaterForPower Water for Power	0
25	HydraulicExpenses Hydraulic Expenses	0
26	ElectricExpensesHydraulicPowerGeneration Electric Expenses	0
27	MiscellaneousHydraulicPowerGenerationExpenses Misc Hydraulic Power Generation Expenses	0
28	RentsHydraulicPowerGeneration Rents	0
29	MaintenanceSupervisionAndEngineeringHydraulicPowerGeneration Maintenance Supervision and Engineering	0
30	MaintenanceOfStructuresHydraulicPowerGeneration Maintenance of Structures	0
31	MaintenanceOfReservoirsDamsAndWaterways Maintenance of Reservoirs, Dams, and Waterways	0
32	MaintenanceOfElectricPlantHydraulicPowerGeneration Maintenance of Electric Plant	0
33	MaintenanceOfMiscellaneousHydraulicPlant Maintenance of Misc Hydraulic Plant	0
34	PowerProductionExpensesHydraulicPower Total Production Expenses (total 23 thru 33)
35	ExpensesPerNetKilowattHour Expenses per net kWh	0.0000

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

Pumped Storage Generating Plant Statistics
Large plants and pumped storage plants of 10,000 Kw or more of installed capacity (name plate ratings). If any plant is leased, operating under a license from the Federal Energy Regulatory Commission, or operated as a joint facility, indicate such facts in a footnote. Give project number. If net peak demand for 60 minutes is not available, give that which is available, specifying period. If a group of employees attends more than one generating plant, report on Line 8 the approximate average number of employees assignable to each plant. The items under Cost of Plant represent accounts or combinations of accounts prescribed by the Uniform System of Accounts. Production Expenses do not include Purchased Power System Control and Load Dispatching, and Other Expenses classified as "Other Power Supply Expenses." Pumping energy (Line 10) is that energy measured as input to the plant for pumping purposes. Include on Line 36 the cost of energy used in pumping into the storage reservoir. When this item cannot be accurately computed leave Lines 36, 37 and 38 blank and describe at the bottom of the schedule the company's principal sources of pumping power, the estimated amounts of energy from each station or other source that individually provides more than 10 percent of the total energy used for pumping, and production expenses per net MWH as reported herein for each source described. Group together stations and other resources which individually provide less than 10 percent of total pumping energy. If contracts are made with others to purchase power for pumping, give the supplier contract number, and date of contract.
Line No.	Item (a)	FERC Licensed Project No. 0 Plant Name: 0
1	PlantConstructionType Type of Plant Construction (Conventional or Outdoor)
2	YearPlantOriginallyConstructed Year Originally Constructed
3	YearLastUnitOfPlantInstalled Year Last Unit was Installed
4	InstalledCapacityOfPlant Total installed cap (Gen name plate Rating in MW)
5	NetPeakDemandOnPlant Net Peak Demaind on Plant-Megawatts (60 minutes)
6	PlantHoursConnectedToLoad Plant Hours Connect to Load While Generating
7	NetContinuousPlantCapability Net Plant Capability (in megawatts)
8	PlantAverageNumberOfEmployees Average Number of Employees
9	NetGenerationExcludingPlantUse Generation, Exclusive of Plant Use - kWh
10	EnergyUsedForPumping Energy Used for Pumping
11	NetOutputForLoad Net Output for Load (line 9 - line 10) - Kwh	0
12	CostOfPlantAbstract Cost of Plant
13	CostOfLandAndLandRightsPumpedStoragePlant Land and Land Rights
14	CostOfStructuresAndImprovementsPumpedStoragePlant Structures and Improvements
15	CostOfReservoirsDamsAndWaterwaysPumpedStoragePlant Reservoirs, Dams, and Waterways
16	CostOfWaterWheelsTurbinesAndGeneratorsPumpedStoragePlant Water Wheels, Turbines, and Generators
17	CostOfAccessoryElectricEquipmentPumpedStoragePlant Accessory Electric Equipment
18	CostOfMiscellaneousPowerPlantEquipmentPumpedStoragePlant Miscellaneous Powerplant Equipment
19	CostOfRoadsRailroadsAndBridgesPumpedStoragePlant Roads, Railroads, and Bridges
20	AssetRetirementCostsPumpedStoragePlant Asset Retirement Costs
21	CostOfPlant Total cost (total 13 thru 20)
22	CostPerKilowattOfInstalledCapacity Cost per KW of installed cap (line 21 / 4)
23	ProductionExpensesAbstract Production Expenses
24	OperationSupervisionAndEngineeringExpense Operation Supervision and Engineering
25	WaterForPower Water for Power
26	PumpedStorageExpenses Pumped Storage Expenses
27	ElectricExpensesPumpedStoragePlant Electric Expenses
28	MiscellaneousPumpedStoragePowerGenerationExpenses Misc Pumped Storage Power generation Expenses
29	RentsPumpedStoragePlant Rents
30	MaintenanceSupervisionAndEngineeringPumpedStoragePlant Maintenance Supervision and Engineering
31	MaintenanceOfStructuresPumpedStoragePlant Maintenance of Structures
32	MaintenanceOfReservoirsDamsAndWaterwaysPumpedStoragePlant Maintenance of Reservoirs, Dams, and Waterways
33	MaintenanceOfElectricPlantPumpedStoragePlant Maintenance of Electric Plant
34	MaintenanceOfMiscellaneousPumpedStoragePlant Maintenance of Misc Pumped Storage Plant
35	PowerProductionExpenseBeforePumpingExpenses Production Exp Before Pumping Exp (24 thru 34)
36	PumpingExpenses Pumping Expenses
37	PowerProductionExpensesPumpedStoragePlant Total Production Exp (total 35 and 36)
38	ExpensesPerNetKilowattHour Expenses per kWh (line 37 / 9)
39	ExpensesPerNetKilowattHourGenerationAndPumping Expenses per KWh of Generation and Pumping (line 37/(line 9 + line 10))	0

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

GENERATING PLANT STATISTICS (Small Plants)
Small generating plants are steam plants of, less than 25,000 Kw; internal combustion and gas turbine-plants, conventional hydro plants and pumped storage plants of less than 10,000 Kw installed capacity (name plate rating). Designate any plant leased from others, operated under a license from the Federal Energy Regulatory Commission, or operated as a joint facility, and give a concise statement of the facts in a footnote. If licensed project, give project number in footnote. List plants appropriately under subheadings for steam, hydro, nuclear, internal combustion and gas turbine plants. For nuclear, see instruction 11, Page 402. If net peak demand for 60 minutes is not available, give the which is available, specifying period. If any plant is equipped with combinations of steam, hydro internal combustion or gas turbine equipment, report each as a separate plant. However, if the exhaust heat from the gas turbine is utilized in a steam turbine regenerative feed water cycle, or for preheated combustion air in a boiler, report as one plant.
									Production Expenses
Line No.	PlantName Name of Plant (a)	YearPlantOriginallyConstructed Year Orig. Const. (b)	InstalledCapacityOfPlant Installed Capacity Name Plate Rating (MW) (c)	NetPeakDemandOnPlant Net Peak Demand MW (60 min) (d)	NetGenerationExcludingPlantUse Net Generation Excluding Plant Use (e)	CostOfPlant Cost of Plant (f)	PlantCostPerMw Plant Cost (Incl Asset Retire. Costs) Per MW (g)	OperatingExpensesExcludingFuel Operation Exc'l. Fuel (h)	FuelProductionExpenses Fuel Production Expenses (i)	MaintenanceProductionExpenses Maintenance Production Expenses (j)	FuelKind Kind of Fuel (k)	FuelCostPerMmbtus Fuel Costs (in cents (per Million Btu) (l)	GenerationType Generation Type (m)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

ENERGY STORAGE OPERATIONS (Large Plants)
Large Plants are plants of 10,000 Kw or more. In columns (a) (b) and (c) report the name of the energy storage project, functional classification (Production, Transmission, Distribution), and location. In column (d), report Megawatt hours (MWH) purchased, generated, or received in exchange transactions for storage. In columns (e), (f) and (g) report MWHs delivered to the grid to support production, transmission and distribution. The amount reported in column (d) should include MWHs delivered/provided to a generator’s own load requirements or used for the provision of ancillary services. In columns (h), (i), and (j) report MWHs lost during conversion, storage and discharge of energy. In column (k) report the MWHs sold. In column (l), report revenues from energy storage operations. In a footnote, disclose the revenue accounts and revenue amounts related to the income generating activity. In column (m), report the cost of power purchased for storage operations and reported in Account 555.1, Power Purchased for Storage Operations. If power was purchased from an affiliated seller specify how the cost of the power was determined. In columns (n) and (o), report fuel costs for storage operations associated with self-generated power included in Account 501 and other costs associated with self-generated power. In columns (q), (r) and (s) report the total project plant costs including but not exclusive of land and land rights, structures and improvements, energy storage equipment, turbines, compressors, generators, switching and conversion equipment, lines and equipment whose primary purpose is to integrate or tie energy storage assets into the power grid, and any other costs associated with the energy storage project included in the property accounts listed.
Line No.	Name of the Energy Storage Project (a)	Functional Classification (b)	Location of the Project (c)	MWHs (d)	MWHs delivered to the grid to support Production (e)	MWHs delivered to the grid to support Transmission (f)	MWHs delivered to the grid to support Distribution (g)	MWHs Lost During Conversion, Storage and Discharge of Energy Production (h)	MWHs Lost During Conversion, Storage and Discharge of Energy Transmission (i)	MWHs Lost During Conversion, Storage and Discharge of Energy Distribution (j)	MWHs Sold (k)	Revenues from Energy Storage Operations (l)	Power Purchased for Storage Operations (555.1) (Dollars) (m)	Fuel Costs from associated fuel accounts for Storage Operations Associated with Self- Generated Power (Dollars) (n)	Other Costs Associated with Self-Generated Power (Dollars) (o)	Project Costs included in (p)	Production (Dollars) (q)	Transmission (Dollars) (r)	Distribution (Dollars) (s)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TRANSMISSION LINE STATISTICS
Report information concerning transmission lines, cost of lines, and expenses for year. List each transmission line having nominal voltage of 132 kilovolts or greater. Report transmission lines below these voltages in group totals only for each voltage. If required by a State commission to report individual lines for all voltages, do so but do not group totals for each voltage under 132 kilovolts. Transmission lines include all lines covered by the definition of transmission system plant as given in the Uniform System of Accounts. Do not report substation costs and expenses on this page. Exclude from this page any transmission lines for which plant costs are included in Account 121, Nonutility Property. Indicate whether the type of supporting structure reported in column (e) is: (1) single pole wood or steel; (2) H-frame wood, or steel poles; (3) tower; or (4) underground construction If a transmission line has more than one type of supporting structure, indicate the mileage of each type of construction by the use of brackets and extra lines. Minor portions of a transmission line of a different type of construction need not be distinguished from the remainder of the line. Report in columns (f) and (g) the total pole miles of each transmission line. Show in column (f) the pole miles of line on structures the cost of which is reported for the line designated; conversely, show in column (g) the pole miles of line on structures the cost of which is reported for another line. Report pole miles of line on leased or partly owned structures in column (g). In a footnote, explain the basis of such occupancy and state whether expenses with respect to such structures are included in the expenses reported for the line designated. Do not report the same transmission line structure twice. Report Lower voltage Lines and higher voltage lines as one line. Designate in a footnote if you do not include Lower voltage lines with higher voltage lines. If two or more transmission line structures support lines of the same voltage, report the pole miles of the primary structure in column (f) and the pole miles of the other line(s) in column (g). Designate any transmission line or portion thereof for which the respondent is not the sole owner. If such property is leased from another company, give name of lessor, date and terms of Lease, and amount of rent for year. For any transmission line other than a leased line, or portion thereof, for which the respondent is not the sole owner but which the respondent operates or shares in the operation of, furnish a succinct statement explaining the arrangement and giving particulars (details) of such matters as percent ownership by respondent in the line, name of co-owner, basis of sharing expenses of the Line, and how the expenses borne by the respondent are accounted for, and accounts affected. Specify whether lessor, co-owner, or other party is an associated company. Designate any transmission line leased to another company and give name of Lessee, date and terms of lease, annual rent for year, and how determined. Specify whether lessee is an associated company. Base the plant cost figures called for in columns (j) to (l) on the book cost at end of year.
	DESIGNATION		VOLTAGE (KV) - (Indicate where other than 60 cycle, 3 phase)			LENGTH (Pole miles) - (In the case of underground lines report circuit miles)				COST OF LINE (Include in column (j) Land, Land rights, and clearing right-of-way)			EXPENSES, EXCEPT DEPRECIATION AND TAXES
Line No.	TransmissionLineStartPoint From	TransmissionLineEndPoint To	OperatingVoltageOfTransmissionLine Operating	DesignedVoltageOfTransmissionLine Designated	SupportingStructureOfTransmissionLineType Type of Supporting Structure	LengthForStandAloneTransmissionLines On Structure of Line Designated	LengthForTransmissionLinesAggregatedWithOtherStructures On Structures of Another Line	NumberOfTransmissionCircuits Number of Circuits	SizeOfConductorAndMaterial Size of Conductor and Material	CostOfLandAndLandRightsTransmissionLines Land	ConstructionAndOtherCostsTransmissionLines Construction Costs	OverallCostOfTransmissionLine Total Costs	OperatingExpensesOfTransmissionLine Operation Expenses	MaintenanceExpensesOfTransmissionLine Maintenance Expenses	RentExpensesOfTransmissionLine Rents	OverallExpensesOfTransmissionLine Total Expenses
	(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)	(i)	(j)	(k)	(l)	(m)	(n)	(o)	(p)
1	STATE OF TENNESSEE	STATE OF TENNESSEE
2	0004 North Bristol, VA	West Kingsport, TN	138.00	138.00	1	1.92	2.92	1	556KCM ACSR
3	0005 Holston Ordance Tap #2		138.00	138.00	1	0.07	0	1	4/0 ACSR
4	0006 Clinch River, VA	Moreland Drive, TN	138.00	138.00	3	7.83	0	2	556KCM ACSR
5	0007 Nagel, TN	Reedy Creek, TN	138.00	138.00	1	0	5.61	1	556KCM ACSR
6	0008 Short Hills Tap, TN		138.00	138.00	1	0.04	0	1	556KCM ACSR
7	0008 Holston, TN	Reedy Creek, TN	138.00	138.00	1	0	7.40	1	556KCM ACSR
8	0009 Broadford, VA	Nagel, TN	138.00	138.00	1	11.76	0.01	1	556KCM ACSR
9	0009 Broadford, VA	Nagel, TN	0.00	0.00	1	0.11	0	0
10	0009A Nagel, TN	West Kingsport, TN	138.00	138.00	1	0	3.25	1	556KCM ACSR
11	0013 Industry Drive, TN	West Kingsport, TN	138.00	138.00	1	0.59	0	1	795KCM ACSR
12	0960 Air Products	Riverport	138.00	138.00	1	0.08	0	2	1033KCM ACSR
13	Lines < 132 KV		0	0		30.81	0.08	0
14			0	0		0	0	0
15	Line cost and expense are	not available by individual	0	0		0	0	0		906,458	15,775,129	16,681,587	1,973.00	280,552		282,525
16	transmission line	Total shown in Column j-p
36	TOTAL					53	19	12		906,458	15,775,129	16,681,587	1,973	280,552		282,525

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TRANSMISSION LINES ADDED DURING YEAR

Report below the information called for concerning Transmission lines added or altered during the year. It is not necessary to report minor revisions of lines.
Provide separate subheadings for overhead and under- ground construction and show each transmission line separately. If actual costs of competed construction are not readily available for reporting columns (l) to (o), it is permissible to report in these columns the costs. Designate, however, if estimated amounts are reported. Include costs of Clearing Land and Rights-of-Way, and Roads and Trails, in column (l) with appropriate footnote, and costs of Underground Conduit in column (m).
If design voltage differs from operating voltage, indicate such fact by footnote; also where line is other than 60 cycle, 3 phase, indicate such other characteristic.

LINE DESIGNATION

SUPPORTING STRUCTURE

CIRCUITS PER STRUCTURE

CONDUCTORS

LINE COST

Line No.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

(o)

(p)

(q)

1

Nothing to Report

44

TOTAL

0

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

SUBSTATIONS
Report below the information called for concerning substations of the respondent as of the end of the year. Substations which serve only one industrial or street railway customer should not be listed below. Substations with capacities of Less than 10 MVA except those serving customers with energy for resale, may be grouped according to functional character, but the number of such substations must be shown. Indicate in column (b) the functional character of each substation, designating whether transmission or distribution and whether attended or unattended. At the end of the page, summarize according to function the capacities reported for the individual stations in column (f). Show in columns (I), (j), and (k) special equipment such as rotary converters, rectifiers, condensers, etc. and auxiliary equipment for increasing capacity. Designate substations or major items of equipment leased from others, jointly owned with others, or operated otherwise than by reason of sole ownership by the respondent. For any substation or equipment operated under lease, give name of lessor, date and period of lease, and annual rent. For any substation or equipment operated other than by reason of sole ownership or lease, give name of co-owner or other party, explain basis of sharing expenses or other accounting between the parties, and state amounts and accounts affected in respondent's books of account. Specify in each case whether lessor, co-owner, or other party is an associated company.
		Character of Substation		VOLTAGE (In MVa)						Conversion Apparatus and Special Equipment
Line No.	SubstationNameAndLocation Name and Location of Substation (a)	SubstationCharacterDescription Transmission or Distribution (b)	SubstationCharacterAttendedOrUnattended Attended or Unattended (b-1)	PrimaryVoltageLevel Primary Voltage (In MVa) (c)	SecondaryVoltageLevel Secondary Voltage (In MVa) (d)	TertiaryVoltageLevel Tertiary Voltage (In MVa) (e)	SubstationInServiceCapacity Capacity of Substation (In Service) (In MVa) (f)	NumberOfTransformersInService Number of Transformers In Service (g)	Number of Spare Transformers (h)	ConversionApparatusAndSpecialEquipmentType Type of Equipment (i)	NumberOfConversionApparatusAndSpecialEquipmentUnits Number of Units (j)	CapacityOfConversionApparatusAndSpecialEquipment Total Capacity (In MVa) (k)
1	BLUE RIDGE GLASS - TN	Distribution		34.50	7.20		5.00	1			0	0.0
2	BLUE RIDGE GLASS - TN	Distribution		34.50	12.00		22.40	1			0	0.0
3	BORDEN MILLS - TN	Distribution		34.50	13.09		12.00	1			0	0.0
4	CUMBERLAND - TN	Distribution		34.50	12.00		22.40	1			0	0.0
5	CUMBERLAND - TN	Distribution		34.50	0.00	0.00	0.00			STATCAP	1	14.4
6	EDENS RIDGE - TN	Distribution		138.00	13.09		22.40	1			0	0.0
7	FORT ROBINSON - TN	Transmission		138.00	69.00	34.50	84.00	1			0	0.0
8	HIGHLAND (KGP) - TN	Distribution		34.50	12.00		25.00	2			0	0.0
9	HOLSTON(KGP) - TN	Transmission		138.00	34.50		30.00	1			0	0.0
10	HOLSTON(KGP) - TN	Transmission		138.00	13.09		10.50	0	1		0	0.0
11	HOLSTON(KGP) - TN	Transmission		138.00	35.00		45.00	1			0	0.0
12	HOLSTON(KGP) - TN	Transmission		138.00	0.00	0.00	0.00			STATCAP	3
13	HOLSTON (KGP) - TN	Transmission		138.00	0.00	0.00	0.00			STATCAP	1	50.4
14	HOLSTON(KGP) - TN	Transmission		138.00	69.00	34.50	75.00	1			0	0.0
15	HOLSTON(KGP) - TN	Transmission		138.00	13.09		22.40	1			0	0.0
16	INDIAN SPRINGS - TN	Distribution		138.00	13.09		22.40	1			0	0.0
17	KYLE HILL - TN	Distribution		34.50	12.00		12.50	1			0	0.0
18	LOVEDALE - TN	Distribution		34.50	12.00		18.76	2			0	0.0
19	OREBANK - TN	Distribution		138.00	13.09		20.00	1			0	0.0
20	REEDY CREEK - TN	Transmission		138.00	69.00	34.50	60.00	1			0	0.0
21	REEDY CREEK - TN	Transmission		138.00	0.00	0.00	0.00			STATCAP	1	57.6
22	REEDY CREEK - TN	Transmission		69.00	12.00		22.40	1			0	0.0
23	ROTHERWOOD - TN	Distribution		34.50	12.00		18.76	2			0	0.0
24	SHORT HILLS - TN	Distribution		138.00	13.09		42.40	2			0	0.0
25	SULLIVAN GARDENS - TN	Distribution		138.00	0.00	0.00	0.00			STATCAP	1	28.8
26	SULLIVAN GARDENS - TN	Distribution		138.00	13.09		20.00	1			0	0.0
27	WASTE WATER - TN	Distribution		34.50	4.00		6.25	2			0	0.0
28	WELLMONT - TN	Distribution		34.50	13.09		12.00	1			0	0.0
29	WEST KINGSPORT - TN	Transmission		34.50	0.00	0.00	0.00			STATCAP	1	14.4
30	WEST KINGSPORT - TN	Transmission		138.00	34.50		25.00	1			0	0.0
31	WEST KINGSPORT - TN	Transmission		138.00	0.00	0.00	0.00			STATCAP	1	52.8
32	WEST KINGSPORT - TN	Transmission		138.00	70.50	36.40		1			0	0.0
33	TotalDistributionSubstationMember											43.2
34	TotalGenerationSubstationMember											0.0
35	TotalTransmissionSubstationMember											175.2
36	Total											218.4

Name of Respondent:

Kingsport Power Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

04/12/2023

Year/Period of Report

End of:

2022

/

Q4

TRANSACTIONS WITH ASSOCIATED (AFFILIATED) COMPANIES
Report below the information called for concerning all non-power goods or services received from or provided to associated (affiliated) companies. The reporting threshold for reporting purposes is $250,000. The threshold applies to the annual amount billed to the respondent or billed to an associated/affiliated company for non-power goods and services. The good or service must be specific in nature. Respondents should not attempt to include or aggregate amounts in a nonspecific category such as "general". Where amounts billed to or received from the associated (affiliated) company are based on an allocation process, explain in a footnote.
Line No.	Description of the Good or Service (a)	Name of Associated/Affiliated Company (b)	Account(s) Charged or Credited (c)	Amount Charged or Credited (d)
1	Non-power Goods or Services Provided by Affiliated
2	Administrative and General Expenses - Maintenance	AEPSC	935	278,456
3	Administrative and General Expenses - Operation	AEPSC	920-928,930.1,930.2,931	855,529
4	Construction Services	AEPSC	107,108	6,281,184
5	Construction Services	APCO	107,108	5,469,638
6	Customer Accounts Expenses	AEPSC	901-903,905	838,638
7	Distribution Expenses - Maintenance	APCo	593-597	362,850
8	Distribution Expenses - Operation	AEPSC	580-584, 586-588	384,383
9	Factored Customer A/R Bad Debts	AEP Credit	426.5	279,249
10	Factored Customer A/R Expense	AEP Credit	426.5	516,817
11	Materials and Supplies	OPCo	107,592	988,740
12	Transmission Expenses - Operation	AEPSC	560, 561.2, 561.5, 562,563,566,920,923	345,888
13	Information Technology	AEPSC	920,923	269,516
19
20	Non-power Goods or Services Provided for Affiliated
21	Construction Services	APCo	107,108	1,931,510
22	Distribution Expenses - Maintenance	APCo	590, 593-598	1,093,243
23	Distribution Expenses - Operation	APCo	580, 583, 586-588	405,895
24	Materials and Supplies	AEP Texas	154	319,223
25	Customer Accounts Expenses	APCO	902,903	275,191
26	Materials and Supplies	OKTCo	154	1,599,391
27	Materials and Supplies	PSO	154	572,206
28	Materials and Supplies	SWEPCo	154	380,023
42

FERC FINANCIAL REPORT FERC FORM No. 1: Annual Report of Major Electric Utilities, Licensees and Others and Supplemental Form 3-Q: Quarterly Financial Report

INSTRUCTIONS FOR FILING FERC FORM NOS. 1 and 3-Q

GENERAL INFORMATION

Purpose

Who Must Submit

What and Where to Submit

When to Submit

Where to Send Comments on Public Reporting Burden.

GENERAL INSTRUCTIONS

EXCERPTS FROM THE LAW

GENERAL PENALTIES

FERC FINANCIAL REPORT
FERC FORM No. 1: Annual Report of
Major Electric Utilities, Licensees
and Others and Supplemental
Form 3-Q: Quarterly Financial Report