Engineering and Administration. Engineering and administrative overhead loading rates are used to allocate engineering, supervision, and administrative overhead costs not assigned to specific project work orders. AEP uses separate loading rates for AEP Service Corporation engineering (SCEt&d) and operating company construction overhead costs (CCO). A complete description of the costs recovered through the AEP Service Corporation loading rate (sclrt&d) and the operating company construction loading rate (cclr) is provided in Note 1 to page 218 of each AEP Company's FERC Form-1 Report. A copy of that note is included as the last page in this Attachment 4. As the description of Construction Overhead Procedure shows, the CCO and SCEt&d loading rates (cclr and sclrt&d, respectively) are derived in the normal course of business for the purpose of capturing the portions of AEP Service Corporation engineering and operating company construction overhead costs which are incurred in connection with transmission and distribution (T&D) plan construction. The cclr and sclrt&d are reviewed monthly and updated, as needed, to clear the respective engineering and administrative overhead costs yearly. In symbolic format the engineering and administration overhead costs (O) are calculated as follows: O = CCO + SCEt&d Where CCO = (M + L + E + S) x cclr and ▇▇▇▇&▇ = (M + L + E + S + CCO) x sclrt&d Operating Companies of the Original Sheet No. 46 American Electric Power System Attachment 4 FERC Electric Tariff, Third Revised Volume No. 6
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Engineering and Administration. Engineering and administrative overhead loading rates are used to allocate engineering, supervision, and administrative overhead costs not assigned to specific project work orders. AEP uses separate loading rates for AEP Service Corporation engineering (SCEt&d) and operating company construction overhead costs (CCO). A complete description of the costs recovered through the AEP Service Corporation loading rate (sclrt&d) and the operating company construction loading rate (cclr) is provided in Note 1 to page 218 of each AEP Company's FERC Form-1 Report. A copy of that note is included as the last page in this Attachment 4. As the description of Construction Overhead Procedure shows, the CCO and SCEt&d loading rates (cclr and sclrt&d, respectively) are derived in the normal course of business for the purpose of capturing the portions of AEP Service Corporation engineering and operating company construction overhead costs which are incurred in connection with transmission and distribution (T&D) plan construction. The cclr and sclrt&d are reviewed monthly and updated, as needed, to clear the respective engineering and administrative overhead costs yearly. In symbolic format the engineering and administration overhead costs (O) are calculated as follows: O = CCO + SCEt&d Where CCO = (M + L + E + S) x cclr and ▇▇▇▇&▇ SCEt&d = (M + L + E + S + CCO) x sclrt&d Operating Companies of the Original Sheet No. 46 45 American Electric Power System Attachment 4 FERC Electric Tariff, Third Revised Volume No. 6
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