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As Of Filer Filing For·On·As Docs:Size 10/24/19 American Electric Power Co Inc 10-Q 9/30/19 106:63M Public Service Co of Oklahoma Southwestern Electric Power Co Appalachian Power Co Indiana Michigan Power Co Ohio Power Co AEP Transmission Company, LLC AEP Texas Inc. |
Document/Exhibit Description Pages Size
1: 10-Q Quarterly Report HTML 9.43M
2: EX-10.1 Aep System Incentive Compensation Deferral Plan HTML 102K
Amended
3: EX-10.2 Aep Aircraft Timesharing Agreement Dated October HTML 69K
1, 2019
36: EX-95 Mine-Safety Disclosure HTML 32K
4: EX-31.A 301 Certification of CEO (Sox) - Aep HTML 34K
6: EX-31.A 301 Certification of CEO (Sox) - Aep Texas HTML 34K
5: EX-31.A 301 Certification of CEO (Sox) - Aeptco HTML 34K
7: EX-31.A 301 Certification of CEO (Sox) - Apco HTML 34K
8: EX-31.A 301 Certification of CEO (Sox) - I&M HTML 34K
9: EX-31.A 301 Certification of CEO (Sox) - Opco HTML 34K
10: EX-31.A 301 Certification of CEO (Sox) - Pso HTML 34K
11: EX-31.A 301 Certification of CEO (Sox) - Swepco HTML 34K
12: EX-31.B 302 Certification of CFO (Sox) - Aep HTML 34K
14: EX-31.B 302 Certification of CFO (Sox) - Aep Texas HTML 34K
13: EX-31.B 302 Certification of CFO (Sox) - Aeptco HTML 34K
15: EX-31.B 302 Certification of CFO (Sox) - Apco HTML 34K
16: EX-31.B 302 Certification of CFO (Sox) - I&M HTML 34K
17: EX-31.B 302 Certification of CFO (Sox) - Opco HTML 34K
18: EX-31.B 302 Certification of CFO (Sox) - Pso HTML 34K
19: EX-31.B 302 Certification of CFO (Sox) - Swepco HTML 34K
20: EX-32.A 1350 Certification of CEO - Aep HTML 29K
22: EX-32.A 1350 Certification of CEO - Aep Texas HTML 29K
21: EX-32.A 1350 Certification of CEO - Aeptco HTML 29K
23: EX-32.A 1350 Certification of CEO - Apco HTML 29K
24: EX-32.A 1350 Certification of CEO - I&M HTML 29K
25: EX-32.A 1350 Certification of CEO - Opco HTML 29K
26: EX-32.A 1350 Certification of CEO - Pso HTML 29K
27: EX-32.A 1350 Certification of CEO - Swepco HTML 29K
28: EX-32.B 1350 Certification of CFO - Aep HTML 29K
30: EX-32.B 1350 Certification of CFO - Aep Texas HTML 29K
29: EX-32.B 1350 Certification of CFO - Aeptco HTML 29K
31: EX-32.B 1350 Certification of CFO - Apco HTML 29K
32: EX-32.B 1350 Certification of CFO - I&M HTML 29K
33: EX-32.B 1350 Certification of CFO - Opco HTML 29K
34: EX-32.B 1350 Certification of CFO - Pso HTML 29K
35: EX-32.B 1350 Certification of CFO - Swepco HTML 29K
43: R1 Document and Entity Information HTML 121K
83: R2 Consolidated Statements of Income HTML 295K
90: R3 Consolidated Statements of Comprehensive Income HTML 100K
(Loss)
68: R4 Consolidated Statements of Comprehensive Income HTML 46K
(Loss) (Parenthetical)
44: R5 Condensed Consolidated Statements of Changes in HTML 342K
Equity
84: R6 Condensed Consolidated Balance Sheets HTML 453K
93: R7 Condensed Consolidated Balance Sheets HTML 136K
(Parenthetical)
65: R8 Condensed Consolidated Statements of Cash Flows HTML 310K
46: R9 Significant Accounting Matters HTML 103K
63: R10 New Accounting Pronouncements HTML 44K
57: R11 Comprehensive Income HTML 817K
77: R12 Rate Matters HTML 218K
103: R13 Commitments, Guarantees and Contingencies HTML 58K
62: R14 Acquisitions and Impairments HTML 60K
56: R15 Benefit Plans HTML 343K
76: R16 Business Segments HTML 525K
102: R17 Derivatives and Hedging HTML 875K
64: R18 Fair Value Measurements HTML 1.34M
55: R19 Income Taxes HTML 108K
85: R20 Leases HTML 532K
92: R21 Financing Activities HTML 449K
67: R22 Variable Interest Entities and Equity Method HTML 79K
Investments
45: R23 Revenue from Contracts with Customers HTML 961K
82: R24 Significant Accounting Matters (Policies) HTML 35K
91: R25 Derivatives and Hedging (Policies) HTML 50K
66: R26 Fair Value Measurements (Policies) HTML 48K
42: R27 Income Taxes Amortization of Excess ADIT not HTML 31K
Subject to Normalization Requirements Policy
(Policies)
81: R28 Leases (Policies) HTML 29K
94: R29 Variable Interest Entities and Equity Method HTML 38K
Investments Variable Interest Entities and Equity
Method Investments (Policies)
105: R30 Significant Accounting Matters (Tables) HTML 97K
78: R31 Comprehensive Income (Tables) HTML 815K
52: R32 Rate Matters (Tables) HTML 157K
60: R33 Commitments, Guarantees and Contingencies (Tables) HTML 35K
106: R34 Acquisitions and Impairments Acquisitions and HTML 43K
Impairments (Tables)
79: R35 Benefit Plans (Tables) HTML 342K
54: R36 Business Segments (Tables) HTML 514K
61: R37 Derivatives and Hedging (Tables) HTML 859K
104: R38 Fair Value Measurements (Tables) HTML 1.34M
80: R39 Income Taxes (Tables) HTML 69K
96: R40 Leases (Tables) HTML 533K
86: R41 Financing Activities (Tables) HTML 449K
47: R42 Variable Interest Entities and Equity Method HTML 56K
Investments (Tables)
71: R43 Revenue from Contracts with Customers (Tables) HTML 959K
97: R44 Significant Accounting Matters (Details) HTML 104K
87: R45 Comprehensive Income (Details) HTML 430K
48: R46 Rate Matters Regulated Operations (Details) HTML 164K
72: R47 Rate Matters East Companies (Details) HTML 174K
95: R48 Rate Matters West Companies (Details) HTML 249K
88: R49 Commitments, Guarantees and Contingencies HTML 70K
(Details)
75: R50 Acquisitions and Impairments (Details) HTML 112K
99: R51 Benefit Plans (Details) HTML 101K
59: R52 Business Segments (Details) HTML 233K
50: R53 Derivatives and Hedging (Details) HTML 568K
74: R54 Fair Value Long-term Debt, Other Temporary HTML 239K
Investments, Nuclear Trusts (Details)
98: R55 Fair Value Assets and Liabilities (Details) HTML 659K
58: R56 Income Taxes (Details) HTML 106K
49: R57 Leases (Details) HTML 493K
73: R58 Financing Activities (Details) HTML 560K
100: R59 Variable Interest Entities and Equity Method HTML 138K
Investments (Details)
69: R60 Revenue from Contracts with Customers (Details) HTML 642K
51: XML IDEA XML File -- Filing Summary XML 139K
101: XML XBRL Instance -- aep20193q10q_htm XML 26.06M
89: EXCEL IDEA Workbook of Financial Reports XLSX 265K
38: EX-101.CAL XBRL Calculations -- aep-20190930_cal XML 337K
39: EX-101.DEF XBRL Definitions -- aep-20190930_def XML 2.10M
40: EX-101.LAB XBRL Labels -- aep-20190930_lab XML 3.36M
41: EX-101.PRE XBRL Presentations -- aep-20190930_pre XML 2.18M
37: EX-101.SCH XBRL Schema -- aep-20190930 XSD 389K
53: JSON XBRL Instance as JSON Data -- MetaLinks 559± 833K
70: ZIP XBRL Zipped Folder -- 0000004904-19-000050-xbrl Zip 1.15M
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| Document |
Commission | Registrants; | I.R.S. Employer | ||||||||
File
Number | Address and Telephone Number | States of Incorporation | Identification Nos. | |||||||
i 1-3525 | i AMERICAN
ELECTRIC POWER CO INC. | i New York | i 13-4922640 | |||||||
i AEP
TEXAS INC. | i Delaware | i 51-0007707 | ||||||||
i AEP
TRANSMISSION COMPANY, LLC | i Delaware | i 46-1125168 | ||||||||
i 1-3457 | i APPALACHIAN
POWER COMPANY | i Virginia | i 54-0124790 | |||||||
i 1-3570 | i INDIANA
MICHIGAN POWER COMPANY | i Indiana | i 35-0410455 | |||||||
i 1-6543 | i OHIO
POWER COMPANY | i Ohio | i 31-4271000 | |||||||
i 0-343 | i PUBLIC
SERVICE COMPANY OF OKLAHOMA | i Oklahoma | i 73-0410895 | |||||||
i 1-3146 | i SOUTHWESTERN
ELECTRIC POWER COMPANY | i Delaware | i 72-0323455 | |||||||
i 1
Riverside Plaza, | i Columbus, | i Ohio | i 43215-2373 | |||||||
Telephone | i (614) | i 716-1000 | ||||||||
Registrant | Title of each class | Trading Symbol | Name of Each Exchange on Which Registered | |||
American Electric Power Company Inc. | i Common
Stock, $6.50 par value | i AEP | i New
York Stock Exchange | |||
American Electric Power Company Inc. | i 6.125% Corporate Units | i AEP
PR B | i New York Stock Exchange | |||
Indicate by check mark whether the registrants (1) have filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. | |||||
i Yes | x | No | ☐ | ||
Indicate
by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). | |||||
i Yes | x | No | ☐ | ||
Indicate
by check mark whether American Electric Power Company, Inc. is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | |||||||
i Large Accelerated filer | x | Accelerated
filer | ☐ | Non-accelerated filer | ☐ | ||
Smaller reporting company | i ☐ | Emerging
growth company | i ☐ | ||||
Indicate
by check mark whether AEP Texas Inc., AEP Transmission Company, LLC, Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies, or emerging growth companies. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | |||||||
Large Accelerated filer | ☐ | Accelerated
filer | ☐ | i Non-accelerated filer | x | ||
Smaller
reporting company | i ☐ | Emerging growth company | i ☐ | ||||
If
an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | |||||
☐ | |||||
Indicate by
check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act). | Yes | i ☐ | No | x | ||
Number of shares of
common stock outstanding of the Registrants as of | ||
American Electric Power Company, Inc. | i 493,951,812 | |
($6.50
par value) | ||
AEP Texas Inc. | i 100 | |
($0.01 par value) | ||
AEP
Transmission Company, LLC (a) | NA | |
Appalachian Power Company | i 13,499,500 | |
(no
par value) | ||
Indiana Michigan Power Company | i 1,400,000 | |
(no par value) | ||
Ohio
Power Company | i 27,952,473 | |
(no par value) | ||
Public Service Company of Oklahoma | i 9,013,000 | |
($15
par value) | ||
Southwestern Electric Power Company | i 7,536,640 | |
($18 par value) | ||
(a) | 100%
interest is held by AEP Transmission Holding Company, LLC, a wholly-owned subsidiary of American Electric Power Company, Inc. |
NA | Not applicable. |
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES | ||||
INDEX
OF QUARTERLY REPORTS ON FORM 10-Q | ||||
Page | ||||
Number | ||||
Glossary
of Terms | ||||
Forward-Looking Information | ||||
Part
I. FINANCIAL INFORMATION | ||||
Items 1, 2, 3 and 4 - Financial Statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Quantitative and Qualitative Disclosures About Market Risk, and Controls and Procedures: | ||||
American
Electric Power Company, Inc. and Subsidiary Companies: | ||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
AEP
Texas Inc. and Subsidiaries: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
AEP
Transmission Company, LLC and Subsidiaries: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
Appalachian
Power Company and Subsidiaries: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
Indiana
Michigan Power Company and Subsidiaries: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
Ohio
Power Company and Subsidiaries: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
Public
Service Company of Oklahoma: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Financial Statements | ||||
Southwestern
Electric Power Company Consolidated: | ||||
Management’s Narrative Discussion and Analysis of Results of Operations | ||||
Condensed Consolidated Financial Statements | ||||
Index
of Condensed Notes to Condensed Financial Statements of Registrants | ||||
Controls and Procedures | ||||
Part
II. OTHER INFORMATION | ||||
Item 1. | Legal Proceedings | |||
Item 1A. |
Risk Factors | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||
Item 3. | Defaults Upon Senior Securities | |||
Item
4. | Mine Safety Disclosures | |||
Item 5. | Other Information | |||
Item 6. | Exhibits | |||
SIGNATURE | ||||
This
combined Form 10-Q is separately filed by American Electric Power Company, Inc., AEP Texas Inc., AEP Transmission Company, LLC, Appalachian Power Company, Indiana Michigan Power Company, Ohio Power Company, Public Service Company of Oklahoma and Southwestern Electric Power Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants. | ||||
Term | Meaning | |
AEGCo | AEP Generating Company, an AEP electric utility subsidiary. | |
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 consolidated subsidiaries and consolidated affiliates. | |
AEP Credit | AEP Credit, Inc., a consolidated VIE 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. | |
AEP Texas | AEP
Texas Inc., an AEP electric utility subsidiary. | |
AEP Transmission Holdco | AEP Transmission Holding Company, LLC, a wholly-owned subsidiary of AEP. | |
AEP Wind Holdings LLC | Acquired in April 2019 as Sempra Renewables LLC, develops, owns and operates, or holds interests in, wind generation facilities in the United States. | |
AEPRO | AEP River Operations, LLC, a commercial barge operation
sold in November 2015. | |
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 wholly-owned subsidiary of AEP Transmission Holdco, is an intermediate holding company that owns the State Transcos. | |
AEPTCo Parent | AEP Transmission Company,
LLC, the holding company of the State Transcos within the AEPTCo consolidation. | |
AFUDC | Allowance for Equity Funds Used During Construction. | |
AGR | AEP Generation Resources Inc., a competitive AEP subsidiary in the Generation & Marketing segment. | |
ALJ | Administrative Law Judge. | |
AOCI | Accumulated
Other Comprehensive Income. | |
APCo | Appalachian Power Company, an AEP electric utility subsidiary. | |
Appalachian Consumer Rate Relief Funding | Appalachian Consumer Rate Relief Funding LLC, a wholly-owned subsidiary of APCo and a consolidated VIE formed for the purpose of issuing and servicing securitization bonds related to the under-recovered ENEC deferral balance. | |
APSC | Arkansas
Public Service Commission. | |
ARAM | Average Rate Assumption Method, an IRS approved method used to calculate the reversal of Excess ADIT for rate-making purposes. | |
ARO | Asset Retirement Obligations. | |
ASU | Accounting Standards Update. | |
CAA | Clean
Air Act. | |
CLECO | Central Louisiana Electric Company, a nonaffiliated utility company. | |
Cardinal Operating Company | A jointly-owned organization between AGR and a nonaffiliate. The nonaffiliate operates the three unit Cardinal Plant and wholly-owns Units 2 and 3. | |
CO2 | Carbon dioxide and other greenhouse gases. | |
Conesville
Plant | A generation plant consisting of three coal-fired generating units totaling 1,695 MW located in Conesville, Ohio. The plant is jointly-owned by AGR and a nonaffiliate. | |
Cook Plant | Donald C. Cook Nuclear Plant, a two-unit, 2,278 MW nuclear plant owned by I&M. | |
CSAPR | Cross-State Air Pollution Rule. | |
CWA | Clean
Water Act. | |
CWIP | Construction Work in Progress. | |
DCC Fuel | DCC Fuel VIII, DCC Fuel IX, DCC Fuel X, DCC Fuel XI, DCC Fuel XII and DCC Fuel XIII, consolidated VIEs formed for the purpose of acquiring, owning and leasing nuclear fuel to I&M. | |
Term | Meaning | |
DHLC | Dolet
Hills Lignite Company, LLC, a wholly-owned lignite mining subsidiary of SWEPCo. | |
DIR | Distribution Investment Rider. | |
EIS | Energy Insurance Services, Inc., a nonaffiliated captive insurance company and consolidated VIE of AEP. | |
ENEC | Expanded Net Energy Cost. | |
Energy Supply | AEP
Energy Supply LLC, a nonregulated holding company for AEP’s competitive generation, wholesale and retail businesses, and a wholly-owned subsidiary of AEP. | |
Equity Units | AEP’s Equity Units issued in March 2019. | |
ERCOT | Electric Reliability Council of Texas regional transmission organization. | |
ESP | Electric Security Plans, a PUCO requirement for electric utilities to adjust
their rates by filing with the PUCO. | |
ETT | Electric Transmission Texas, LLC, an equity interest joint venture between AEP Transmission Holdco and Berkshire Hathaway Energy Company formed to own and operate electric transmission facilities in ERCOT. | |
Excess ADIT | Excess accumulated deferred income taxes. | |
FASB | Financial Accounting Standards Board. | |
Federal
EPA | United States Environmental Protection Agency. | |
FERC | Federal Energy Regulatory Commission. | |
FGD | Flue Gas Desulfurization or scrubbers. | |
FIP | Federal Implementation Plan. | |
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. | |
GAAP | Accounting Principles Generally Accepted in the United States of America. | |
Global Settlement | In February 2017, the PUCO approved a settlement agreement filed by OPCo in December 2016 which resolved all remaining open issues on remand from the Supreme Court of Ohio in OPCo’s 2009 - 2011 and June 2012 - May 2015 ESP filings. It also resolved
all open issues in OPCo’s 2009, 2014 and 2015 SEET filings and 2009, 2012 and 2013 Fuel Adjustment Clause Audits. | |
I&M | Indiana Michigan Power Company, an AEP electric utility subsidiary. | |
IRS | Internal Revenue Service. | |
IURC | Indiana Utility Regulatory Commission. | |
KGPCo | Kingsport
Power Company, an AEP electric utility subsidiary. | |
KPCo | Kentucky Power Company, an AEP electric utility subsidiary. | |
KWh | Kilowatt-hour. | |
LPSC | Louisiana Public Service Commission. | |
MATS | Mercury
and Air Toxic Standards. | |
MISO | Midcontinent Independent System Operator. | |
MMBtu | Million British Thermal Units. | |
MPSC | Michigan Public Service Commission. | |
MTM | Mark-to-Market. | |
MW | Megawatt. | |
MWh | Megawatt-hour. | |
NAAQS | National
Ambient Air Quality Standards. | |
Nonutility Money Pool | Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain nonutility subsidiaries. | |
North Central Wind Energy Facilities | A proposed joint PSO and SWEPCo project, which includes three Oklahoma wind facilities totaling approximately 1,485 MWs of wind generation. | |
NO2 | Nitrogen
dioxide. | |
NOx | Nitrogen oxide. | |
NPDES | National Pollutant Discharge Elimination System. | |
NSR | New Source Review. | |
Term | Meaning | |
OATT | Open
Access Transmission Tariff. | |
OCC | Corporation Commission of the State of Oklahoma. | |
Ohio Phase-in-Recovery Funding | Ohio Phase-in-Recovery Funding LLC, a wholly-owned subsidiary of OPCo and a consolidated VIE formed for the purpose of issuing and servicing securitization bonds related to phase-in recovery property. | |
Oklaunion Power Station | A single unit coal-fired generation
plant totaling 650 MW located in Vernon, Texas. The plant is jointly-owned by AEP Texas, PSO and certain nonaffiliated entities. | |
OPCo | Ohio Power Company, an AEP electric utility subsidiary. | |
OPEB | Other Postretirement Benefits. | |
OSS | Off-system Sales. | |
OTC | Over-the-counter. | |
OVEC | Ohio
Valley Electric Corporation, which is 43.47% owned by AEP. | |
Parent | American Electric Power Company, Inc., the equity owner of AEP subsidiaries within the AEP consolidation. | |
PJM | Pennsylvania – New Jersey – Maryland regional transmission organization. | |
PM | Particulate Matter. | |
PPA | Purchase
Power and Sale Agreement. | |
PSO | Public Service Company of Oklahoma, an AEP electric utility subsidiary. | |
PTC | Production Tax Credits. | |
PUCO | Public Utilities Commission of Ohio. | |
PUCT | Public
Utility Commission of Texas. | |
Racine | A generation plant consisting of two hydroelectric generating units totaling 47.5 MWs located in Racine, Ohio and owned by AGR. | |
Registrant Subsidiaries | AEP subsidiaries which are SEC registrants: AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo. | |
Registrants | SEC registrants: AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo. | |
Restoration
Funding | AEP Texas Restoration Funding LLC, a wholly-owned subsidiary of AEP Texas and a consolidated VIE formed for the purpose of issuing and servicing securitization bonds related to storm restoration in Texas primarily caused by Hurricane Harvey. | |
Risk Management Contracts | Trading and non-trading derivatives, including those derivatives designated as cash flow and fair value hedges. | |
Rockport Plant | A generation plant, consisting of two 1,310
MW coal-fired generating units near Rockport, Indiana. AEGCo and I&M jointly-own Unit 1. In 1989, AEGCo and I&M entered into a sale-and-leaseback transaction with Wilmington Trust Company, an unrelated, unconsolidated trustee for Rockport Plant, Unit 2. | |
ROE | Return on Equity. | |
RPM | Reliability Pricing Model. | |
RSR | Retail Stability Rider. | |
RTO | Regional
Transmission Organization, responsible for moving electricity over large interstate areas. | |
Sabine | Sabine Mining Company, a lignite mining company that is a consolidated VIE for AEP and SWEPCo. | |
Santa Rita East | Santa Rita East Wind Holdings, LLC, a consolidated VIE whose sole purpose is to own and operate a 302.4 MW wind generation facility in west Texas in which AEP owns a 75% interest. | |
SCR | Selective
Catalytic Reduction, NOx reduction technology at Rockport Plant. | |
SEC | U.S. Securities and Exchange Commission. | |
SEET | Significantly Excessive Earnings Test. | |
Sempra Renewables LLC | Sempra Renewables LLC, acquired in April 2019, consists of 724 MWs of wind generation and battery assets in the United States. | |
SIP | State
Implementation Plan. | |
SNF | Spent Nuclear Fuel. | |
SO2 | Sulfur dioxide. | |
SPP | Southwest Power Pool regional transmission organization. | |
Term | Meaning | |
SSO | Standard
service offer. | |
State Transcos | AEPTCo’s seven wholly-owned, FERC regulated, transmission only electric utilities, which are geographically aligned with AEP’s existing utility operating companies. | |
SWEPCo | Southwestern Electric Power Company, an AEP electric utility subsidiary. | |
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. | |
TCC | Formerly AEP Texas Central Company, now a division of AEP Texas. | |
Texas Restructuring Legislation | Legislation enacted in 1999 to restructure the electric utility industry in Texas. | |
Transition
Funding | AEP Texas Central Transition Funding II LLC and AEP Texas Central Transition Funding III LLC, wholly-owned subsidiaries of TCC and consolidated VIEs formed for the purpose of issuing and servicing securitization bonds related to Texas Restructuring Legislation. | |
Transource Energy | Transource Energy, LLC, a consolidated VIE formed for the purpose of investing in utilities which develop, acquire, construct, own and operate transmission facilities in accordance with FERC-approved rates. | |
Turk Plant | John
W. Turk, Jr. Plant, a 600 MW coal-fired plant in Arkansas that is 73% owned by SWEPCo. | |
UPA | Unit Power Agreement. | |
Utility Money Pool | Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain utility subsidiaries. | |
VIE | Variable Interest Entity. | |
Virginia SCC | Virginia
State Corporation Commission. | |
Wind Catcher Project | Wind Catcher Energy Connection Project, a joint PSO and SWEPCo project that was cancelled in July 2018. The project included the acquisition of a wind generation facility, totaling approximately 2,000 MW of wind generation, and the construction of a generation interconnection tie-line totaling approximately 350 miles. | |
WPCo | Wheeling Power Company, an AEP electric utility subsidiary. | |
WVPSC | Public
Service Commission of West Virginia. | |
• | Changes
in economic conditions, electric market demand and demographic patterns in AEP service territories. |
• | Inflationary or deflationary interest rate trends. |
• | Volatility in the financial markets, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt. |
• | The availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material. |
• | Decreased
demand for electricity. |
• | Weather conditions, including storms and drought conditions, and the ability to recover significant storm restoration costs. |
• | The cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and SNF. |
• | The availability of fuel and necessary generation capacity and the performance of generation plants. |
• | The
ability to recover fuel and other energy costs through regulated or competitive electric rates. |
• | The ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs. |
• | New legislation, litigation and government regulation, including oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets. |
• | Evolving
public perception of the risks associated with fuels used before, during and after the generation of electricity, including coal ash and nuclear fuel. |
• | Timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance. |
• | Resolution of litigation. |
• | The ability to constrain operation and maintenance costs. |
• | Prices
and demand for power generated and sold at wholesale. |
• | Changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation. |
• | The ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives. |
• | Volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas. |
• | Changes
in utility regulation and the allocation of costs within RTOs including ERCOT, PJM and SPP. |
• | Changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market. |
• | Actions of rating agencies, including changes in the ratings of debt. |
• | The impact of volatility in the capital markets on the value of the investments held by the pension, OPEB, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements. |
• | Accounting
standards periodically issued by accounting standard-setting bodies. |
• | Other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, naturally occurring and human-caused fires, cyber security threats and other catastrophic events. |
• | The ability to attract and retain the requisite work force
and key personnel. |
• | In May 2019, AEP Texas filed a request with the PUCT for a $56 million annual increase in rates based upon a proposed 10.5% return on common equity. In July and August 2019, PUCT Staff and various intervenors filed testimony that includes recommended disallowances that could potentially result in write-offs exceeding $450 million. The PUCT staff's recommended disallowances primarily consisted of $85 million in capital incentives and $26 million for capitalized
vegetation management expenses. The intervenors recommended disallowances primarily consisted of (a) $173 million for a newly constructed transmission operations center and other service centers, (b) $94 million for Hurricane Harvey costs, (c) $36 million for capitalized cross arms and (d) $21 million for capitalized plant costs related to unreimbursed damages to assets caused by third-parties. In addition, one intervenor recommended AEP Texas refund $115 million of Excess ADIT, which includes $2 million in interest, related to previously owned deregulated generation assets. AEP Texas recorded $113 million as a favorable adjustment to income tax expense in 2017 as a result of Tax Reform. The PUCT is expected to issue an order on the case by the first quarter of 2020. |
• | In
May 2019, I&M filed a request with the IURC for a $172 million annual increase. The requested increase in Indiana rates would be phased in through January 2021 and is based upon a proposed 10.5% return on common equity. In August 2019, various intervenors filed testimony that includes recommended disallowances that could potentially result in write-offs of $41 million related to the remaining book value of existing Indiana jurisdictional meters and $11 million associated with certain Cook Plant study costs. The IURC is expected to issue an order on the case by the first quarter of 2020. |
• | Virginia
Legislation Affecting Earnings Reviews - In March 2018, Virginia enacted legislation requiring APCo to file its next generation and distribution base rate case by March 31, 2020 using 2017, 2018 and 2019 test years (triennial review). Triennial reviews are subject to an earnings test which provides that 70% of any earnings exceeding 70 basis points over the Virginia SCC authorized return on common equity would be refunded to customers or be used to lower APCo’s Virginia retail base rates on a prospective basis. The Virginia legislation also states that, under certain circumstances, costs associated with asset impairments related to early retirement determinations made by a utility for generation facilities fueled by coal, natural gas or oil or for automated meters be considered fully recovered in the period recorded. Management has reviewed APCo’s actual and forecasted earnings for the triennial
period and concluded that it is not probable, but is reasonably possible, that APCo will over-earn in Virginia during the 2017-2019 triennial period. Due to various uncertainties, including weather, storm restoration, weather-normalized demand and potential customer shopping during 2019, management cannot estimate a range of potential APCo Virginia over-earnings during the 2017-2019 triennial period. |
• | Virginia Staff Depreciation Study Request - In November 2018, Virginia staff recommended that APCo implement new Virginia jurisdictional depreciation rates effective January 1, 2018 based on APCo’s depreciation study that
was prepared at Virginia staff’s request using December 31, 2017 APCo property balances. Implementation of those depreciation rates would result in a $21 million pretax increase in annual depreciation expense with no corresponding increase in retail base rates. In December 2018, APCo submitted a response to the Virginia Staff stating that it was inappropriate for APCo to change Virginia depreciation rates in advance of APCo’s triennial review, citing the Virginia SCC’s November 2014 order to not change APCo’s Virginia depreciation rates until APCo’s next base rate case/review. |
• | 2020 Increase in West Virginia Retail Rates for WPCo 17.5% Merchant
Share of Mitchell Plant - In January 2015, the WVPSC approved a settlement agreement in which 82.5% of the costs associated with WPCo’s acquired interest were prospectively reflected in retail rates with the remaining 17.5% of costs associated with the acquired interest to be included in rates starting January 2020. APCo and WPCo file joint retail rates in West Virginia. In June 2019, APCo and WPCo filed with the WVPSC to increase each company’s retail rates (through a surcharge) starting January 1, 2020 to reflect the recovery of WPCo’s remaining 17.5% interest in the Mitchell Plant. The joint filing will increase APCo’s and WPCo’s combined West Virginia retail rates by approximately $21 million annually. |
• | 2012
Texas Base Rate Case - In 2012, SWEPCo filed a request with the PUCT to increase annual base rates primarily due to the completion of the Turk Plant. In 2013, the PUCT issued an order affirming the prudence of the Turk Plant. In July 2018, the Texas Third Court of Appeals reversed the PUCT’s judgment affirming the prudence of the Turk Plant and remanded the issue back to the PUCT. In August 2018, SWEPCo filed a Motion for Reconsideration at the Court of Appeals, which was denied. In January 2019, SWEPCo and the PUCT filed petitions for review with the Texas Supreme Court. In May 2019, various intervenors filed replies to the petition. In July 2019, SWEPCo filed its response to these briefs. The Texas Supreme Court has requested full briefing by the parties. SWEPCo’s initial brief is due in October 2019. Response briefs are due in November 2019 and SWEPCo’s reply brief is due in December 2019. As of September 30,
2019, the net book value of Turk Plant was $1.5 billion, before cost of removal, including materials and supplies inventory and CWIP. SWEPCo’s Texas jurisdictional share of the Turk Plant investment is approximately 33%. |
• | In July 2019, clean energy legislation which offers incentives for power-generating facilities with zero or reduced carbon emissions was signed into law by the Ohio Governor. The clean energy legislation phases out current energy efficiency and renewable mandates no later than 2020 and after 2026, respectively. The bill provides for the recovery of existing renewable energy contracts on a bypassable
basis through 2032. The clean energy legislation also includes a provision for recovery of OVEC costs through 2030 which will be allocated to all electric distribution utilities on a non-bypassable basis. OPCo’s Inter-Company Power Agreement for OVEC terminates in June 2040. To the extent that OPCo is unable to recover the costs of renewable energy contracts on a bypassable basis by the end of 2032, recover costs of OVEC after 2030 or fully recover energy efficiency costs through 2020 it could reduce future net income and cash flows and impact financial condition. |
Approved
Revenue | Approved | New Rates | ||||||||
Company | Jurisdiction | Requirement Increase | ROE | Effective | ||||||
(in
millions) | ||||||||||
APCo | West Virginia | $ | 35.8 | 9.75% | March
2019 | |||||
WPCo | West Virginia | 8.4 | 9.75% | March 2019 | ||||||
PSO | Oklahoma | 46.0 | 9.4% | April
2019 | ||||||
Commission
Staff/ | ||||||||||||
Filing | Requested Revenue | Requested | Intervenor Range of | |||||||||
Company | Jurisdiction | Date | Requirement
Increase | ROE | Recommended ROE | |||||||
(in millions) | ||||||||||||
SWEPCo
(a) | Arkansas | February 2019 | $ | 67.0 | 10.5% | 9% - 9.5% | ||||||
AEP Texas | Texas | May
2019 | 56.0 | 10.5% | 9% - 9.35% | |||||||
I&M | Indiana | May 2019 | 172.0 | 10.5% | 9%
- 9.73% | |||||||
I&M | Michigan | June 2019 | 58.4 | 10.5% | 9.1% - 9.75% | |||||||
(a) | In
October 2019, SWEPCo, the APSC staff and various intervenors filed a stipulation and settlement agreement with the APSC that included a base rate increase of $24 million based upon a 9.45% return on common equity. See “2019 Arkansas Base Rate Case” section of Note 4 for additional information. |
Generating | Amounts
Pending | ||||||||
Company | Plant Name and Unit | Capacity | Regulatory Approval | ||||||
(in MWs) | (in
millions) | ||||||||
APCo | Kanawha River Plant | 400 | $ | 43.8 | |||||
APCo | Clinch River Plant, Unit 3 | 235 | 31.8 | ||||||
APCo
(a) | Clinch River Plant, Units 1 and 2 | 470 | 29.2 | ||||||
APCo | Sporn Plant, Units 1 and 3 | 300 | 15.6 | ||||||
APCo | Glen
Lyn Plant | 335 | 13.5 | ||||||
SWEPCo (b) | Welsh Plant, Unit 2 | 528 | 50.6 | ||||||
Total | 2,268 | $ | 184.5 | ||||||
(a) | APCo
obtained permits following the Virginia SCC’s and WVPSC’s approval to convert Clinch River Plant, Units 1 and 2 to natural gas. In 2015, APCo retired the coal-related assets of Clinch River Plant, Units 1 and 2. Clinch River Plant, Units 1 and 2 began operations as natural gas units in 2016. |
(b) | In October 2019, SWEPCo filed a stipulation and settlement agreement with the APSC, which includes recovery of the remaining $15 million Arkansas jurisdictional share of the net book value of Welsh Plant, Unit 2. An order from the APSC is expected in the fourth quarter of 2019. |
• | Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo. |
• | Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEP Texas and OPCo. |
• | OPCo purchases energy and capacity at auction to serve SSO customers and provides transmission and distribution services for all connected load. |
• | Development,
construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity. |
• | Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity. |
• | Competitive
generation in ERCOT and PJM. |
• | Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO. |
• | Contracted renewable energy investments and management services. |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Vertically Integrated Utilities | $ | 437.6 | $ | 344.2 | $ | 917.7 | $ | 852.2 | |||||||
Transmission
and Distribution Utilities | 133.7 | 145.2 | 421.6 | 384.6 | |||||||||||
AEP Transmission Holdco | 126.1 | 73.3 | 404.8 | 278.4 | |||||||||||
Generation
& Marketing | 90.0 | 5.3 | 139.5 | 62.3 | |||||||||||
Corporate and Other | (53.9 | ) | 9.6 | (116.0 | ) | (17.1 | ) | ||||||||
Earnings
Attributable to AEP Common Shareholders | $ | 733.5 | $ | 577.6 | $ | 1,767.6 | $ | 1,560.4 | |||||||
• | Favorable rate proceedings in AEP’s various jurisdictions. |
• | An
increase in weather-related usage. |
• | An increase in transmission investment, which resulted in higher revenues and income. |
• | Favorable rate proceedings in AEP’s various jurisdictions. |
• | An increase in transmission investment, which resulted in higher revenues and income. |
• | A
decrease in weather-related usage. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Vertically Integrated Utilities | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | ||||||||||||||||
Revenues | $ | 2,645.5 | $ | 2,636.7 | $ | 7,172.6 | $ | 7,393.7 | ||||||||
Fuel
and Purchased Electricity | 874.2 | 1,034.6 | 2,430.2 | 2,700.4 | ||||||||||||
Gross Margin | 1,771.3 | 1,602.1 | 4,742.4 | 4,693.3 | ||||||||||||
Other
Operation and Maintenance | 742.9 | 753.7 | 2,117.1 | 2,197.5 | ||||||||||||
Depreciation and
Amortization | 364.3 | 340.1 | 1,079.6 | 966.1 | ||||||||||||
Taxes Other Than Income Taxes | 117.9 | 108.8 | 347.1 | 326.4 | ||||||||||||
Operating
Income | 546.2 | 399.5 | 1,198.6 | 1,203.3 | ||||||||||||
Other Income | 0.9 | 4.1 | 4.4 | 14.2 | ||||||||||||
Allowance
for Equity Funds Used During Construction | 12.2 | 9.3 | 38.9 | 24.0 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | 17.0 | 18.0 | 50.8 | 53.7 | ||||||||||||
Interest
Expense | (140.6 | ) | (149.2 | ) | (422.6 | ) | (428.0 | ) | ||||||||
Income Before Income Tax Expense (Benefit) and
Equity Earnings | 435.7 | 281.7 | 870.1 | 867.2 | ||||||||||||
Income Tax Expense (Benefit) | (1.9 | ) | (63.1 | ) | (48.4 | ) | 12.9 | |||||||||
Equity
Earnings of Unconsolidated Subsidiary | 0.8 | 0.8 | 2.3 | 2.0 | ||||||||||||
Net Income | 438.4 | 345.6 | 920.8 | 856.3 | ||||||||||||
Net
Income Attributable to Noncontrolling Interests | 0.8 | 1.4 | 3.1 | 4.1 | ||||||||||||
Earnings
Attributable to AEP Common Shareholders | $ | 437.6 | $ | 344.2 | $ | 917.7 | $ | 852.2 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 9,254 | 8,988 | 24,785 | 26,105 | |||||||
Commercial | 6,840 | 6,723 | 18,183 | 18,699 | |||||||
Industrial | 9,123 | 9,107 | 26,533 | 26,757 | |||||||
Miscellaneous | 641 | 621 | 1,734 | 1,762 | |||||||
Total
Retail (a) | 25,858 | 25,439 | 71,235 | 73,323 | |||||||
Wholesale
(b) | 5,864 | 6,432 | 16,494 | 17,156 | |||||||
Total
KWhs | 31,722 | 31,871 | 87,729 | 90,479 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Includes Off-system Sales, municipalities and cooperatives, unit power and other wholesale customers. |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Eastern Region | |||||||||||
Actual – Heating (a) | — | — | 1,670 | 1,844 | |||||||
Normal
– Heating (b) | 5 | 5 | 1,742 | 1,745 | |||||||
Actual
– Cooling (c) | 937 | 878 | 1,316 | 1,364 | |||||||
Normal – Cooling (b) | 732 | 730 | 1,070 | 1,063 | |||||||
Western
Region | |||||||||||
Actual – Heating (a) | — | — | 967 | 974 | |||||||
Normal
– Heating (b) | 1 | 1 | 902 | 908 | |||||||
Actual
– Cooling (c) | 1,572 | 1,443 | 2,234 | 2,380 | |||||||
Normal – Cooling (b) | 1,402 | 1,402 | 2,129 | 2,121 | |||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Cooling degree days are calculated on a 65 degree temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Earnings Attributable to AEP Common Shareholders from Vertically Integrated Utilities | ||||
(in millions) | ||||
Third
Quarter of 2018 | $ | 344.2 | ||
Changes in Gross Margin: | ||||
Retail Margins | 145.1 | |||
Margins
from Off-system Sales | (0.9 | ) | ||
Transmission Revenues | 23.8 | |||
Other Revenues | 1.2 | |||
Total Change in Gross Margin | 169.2 | |||
Changes
in Expenses and Other: | ||||
Other Operation and Maintenance | 10.8 | |||
Depreciation and Amortization | (24.2 | ) | ||
Taxes Other Than Income Taxes | (9.1 | ) | ||
Other
Income | (3.2 | ) | ||
Allowance for Equity Funds Used During Construction | 2.9 | |||
Non-Service Cost Components of Net Periodic Pension Cost | (1.0 | ) | ||
Interest
Expense | 8.6 | |||
Total Change in Expenses and Other | (15.2 | ) | ||
Income Tax Expense (Benefit) | (61.2 | ) | ||
Net
Income Attributable to Noncontrolling Interests | 0.6 | |||
Third Quarter of 2019 | $ | 437.6 | ||
• | Retail Margins increased $145 million primarily due to the following: |
• | A $91 million increase at APCo and WPCo due to a 2018 reduction in the deferred fuel under
recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was partially offset in Income Tax Expense (Benefit) below. |
• | A $23 million increase in weather-related usage primarily in the residential class. |
• | A $15 million increase at APCo in deferred fuel related to recoverable PJM expenses that were offset below. |
• | A
$10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense at APCo in the prior year. |
• | A $4 million increase in weather-normalized retail margins across all classes. |
• | The effect of rate proceedings in AEP’s service territories which included: |
• | A
$19 million increase from rate proceedings at I&M. This increase was partially offset in other expense items below. |
• | A $14 million increase at PSO due to new base rates implemented in April 2019. |
• | A $10 million increase at APCo and WPCo due to revenue primarily from rate riders in West Virginia. This increase was offset in other expense items below. |
• | An
$8 million increase related to rider revenues at I&M, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below. |
• | A $7 million increase at APCo and WPCo due to base rate increases in West Virginia implemented in March 2019. |
• | A $74 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense
(Benefit) below. |
• | Transmission Revenues increased $24 million primarily due to the following: |
• | A $16 million increase due to SPP provisions for refund recorded in 2018. |
• | A
$16 million increase primarily due to 2018 PJM provisions for refunds mainly at APCo. |
• | An $8 million decrease primarily due to a reduction in SPP Base Plan Funding revenues and a decrease in nonaffiliated transmission services. |
• | Other
Operation and Maintenance expenses decreased $11 million primarily due to the following: |
• | A $40 million decrease at APCo and WPCo due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement. |
• | A $12 million decrease in planned plant outage and maintenance expenses primarily at APCo and I&M. |
• | A
$9 million decrease due to Wind Catcher Project expenses incurred in 2018 for SWEPCo and PSO. |
• | A $3 million decrease in recoverable expenses primarily associated with Energy Efficiency/Demand Response and storm expenses fully recovered in rate riders/trackers within Gross Margin above. |
• | A $45 million increase due to PJM transmission services including the annual formula rate true-up. |
• | An
$8 million increase due to the modification of the NSR consent decree impacting I&M and AEGCo. |
• | A $2 million increase due to North Central Wind Energy Facilities expenses for SWEPCo and PSO. |
• | Depreciation and Amortization expenses increased $24 million primarily due to a higher depreciable base and increased depreciation rates approved at APCo, I&M and SWEPCo. |
• | Taxes
Other Than Income Taxes increased $9 million primarily due to the following: |
• | A $5 million increase in property taxes driven by an increase in utility plant. |
• | A $5 million increase in West Virginia business and occupational taxes at APCo and WPCo. |
• | Interest
Expense decreased $9 million primarily due to lower interest rates on outstanding long-term debt at I&M and SWEPCo. |
• | Income Tax Expense (Benefit) increased $61 million primarily due to the one time recognition of $86 million of additional amortization of Excess ADIT as a result of the West Virginia Tax Reform order received in the third quarter of 2018. The additional excess amortization from the West Virginia Tax Reform order was partially offset in Retail Margins and Other Operation and Maintenance expenses above. |
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Earnings Attributable to AEP Common Shareholders from Vertically Integrated Utilities | ||||
(in millions) | ||||
Nine
Months Ended September 30, 2018 | $ | 852.2 | ||
Changes in Gross Margin: | ||||
Retail
Margins | 75.4 | |||
Margins from Off-system Sales | (10.4 | ) | ||
Transmission Revenues | (16.4 | ) | ||
Other Revenues | 0.5 | |||
Total
Change in Gross Margin | 49.1 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 80.4 | |||
Depreciation
and Amortization | (113.5 | ) | ||
Taxes Other Than Income Taxes | (20.7 | ) | ||
Other Income | (9.8 | ) | ||
Allowance for Equity Funds Used During Construction | 14.9 | |||
Non-Service
Cost Components of Net Periodic Pension Cost | (2.9 | ) | ||
Interest Expense | 5.4 | |||
Total Change in Expenses and Other | (46.2 | ) | ||
Income
Tax Expense (Benefit) | 61.3 | |||
Equity Earnings of Unconsolidated Subsidiary | 0.3 | |||
Net Income Attributable to Noncontrolling Interests | 1.0 | |||
Nine
Months Ended September 30, 2019 | $ | 917.7 | ||
• | Retail
Margins increased $75 million primarily due to the following: |
• | A $91 million increase at APCo and WPCo due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was partially offset in Income Tax Expense (Benefit) below. |
• | A $12 million increase at APCo in deferred fuel related to recoverable PJM expenses that were offset below. |
• | A
$10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense at APCo in the prior year. |
• | A $6 million decrease at I&M in fuel-related expenses due to timing of recovery for fuel and other variable production costs related to wholesale contracts. |
• | The effect of rate proceedings in AEP’s service territories which included: |
• | A
$94 million increase from rate proceedings at I&M, inclusive of a $30 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below. |
• | A $35 million increase at PSO due to new base rates implemented in April 2019 and March 2018. |
• | A $21 million increase related to rider revenues at I&M, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below. |
• | A
$17 million increase at APCo and WPCo primarily due to revenue from rate riders in West Virginia. This increase was offset in other expense items below. |
• | A $14 million increase at APCo and WPCo due to base rate increases in West Virginia implemented in March 2019. |
• | A
$7 million increase at SWEPCo primarily due to rider and base rate revenue increases in Louisiana. The increase in rider rates had increases in other expense items below. |
• | A $4 million increase in rider revenues at KPCo offset in other expense items below. |
• | A $117 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below. |
• | A
$73 million decrease in weather-related usage across all regions primarily in the residential class. |
• | A $67 million decrease in weather-normalized retail margins across all classes. |
• | Margins from Off-system Sales decreased $10 million primarily due to mid-year 2018 changes in the OSS sharing mechanism at I&M. |
• | Transmission
Revenues decreased $16 million primarily due to the following: |
• | A $40 million decrease in SWEPCo’s annual SPP Transmission formula rate true-up. |
• | A $12 million decrease primarily due to I&M’s annual PJM Transmission formula rate true-up. |
• | An
$11 million decrease primarily due to a reduction in SPP Base Plan Funding revenues. |
• | A $36 million increase primarily due to 2018 PJM provisions for refund mainly at APCo. |
• | A $16 million increase due to a provision for refund recorded at PSO and SWEPCo in 2018 related to certain transmission assets that management believes should not have been included in the SPP formula rate. |
• | Other Operation and Maintenance expenses decreased $80 million primarily due to the following: |
• | A $56 million decrease due to SPP transmission services including the annual formula rate true-up. |
• | A
$47 million decrease in planned plant outage and maintenance expenses primarily for I&M, APCo, SWEPCo and KPCo. |
• | A $40 million decrease due to Wind Catcher Project expenses incurred in 2018 for SWEPCo and PSO. |
• | A $40 million decrease at APCo and WPCo due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement. |
• | A
$25 million decrease in recoverable expenses primarily associated with Energy Efficiency/Demand Response and storm expenses fully recovered in rate riders/trackers within Gross Margin above. |
• | A $10 million decrease in expense at APCo due to lower current year amortization of certain regulatory assets that were extinguished in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement. |
• | A $9 million decrease in estimated expense for claims related to asbestos exposure. |
• | A $92 million increase due to PJM transmission services including the annual formula rate true-up. |
• | A $23 million increase in employee-related expenses. |
• | A $13 million increase at APCo due to 2019 contributions to benefit low income West Virginia residential customers
as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below. |
• | An $8 million increase in storm-related expenses primarily at SWEPCo. |
• | An $8 million increase due to the modification of the NSR consent decree impacting I&M and AEGCo. |
• | A
$5 million increase due to North Central Wind Energy Facilities expenses for SWEPCo and PSO. |
• | Depreciation and Amortization expenses increased $114 million primarily due to a higher depreciable base and increased depreciation rates approved at I&M, APCo, SWEPCo and PSO. |
• | Taxes Other Than Income Taxes increased $21 million primarily due to the
following: |
• | A $14 million increase in property taxes driven by an increase in utility plant. |
• | A $9 million increase at APCo and WPCo in West Virginia business and occupational taxes. |
• | Other Income decreased $10 million
primarily due to a decrease in carrying charges for certain riders at I&M. |
• | Allowance for Equity Funds Used During Construction increased $15 million primarily due to the following: |
• | A $10 million increase primarily due to various increases in equity rates at I&M, APCo and PSO and increased projects at I&M. |
• | A
$3 million increase due to recent FERC audit findings. |
• | A $2 million increase due to the FERC’s approval of a settlement agreement. |
• | Interest Expense decreased $5 million primarily due to the following: |
• |
A $16 million decrease due to lower interest rates on outstanding long-term debt at I&M and SWEPCo. |
• | An $11 million increase primarily due to higher long-term debt balances mainly at APCo and PSO. |
• | Income Tax Expense (Benefit) decreased $61 million primarily due to additional amortization of Excess ADIT as a
result of finalized rate orders. The excess amortization is partially offset within Gross Margin and Other Operation and Maintenance above. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Transmission and Distribution Utilities | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | ||||||||||||||||
Revenues | $ | 1,186.6 | $ | 1,211.5 | $ | 3,454.3 | $ | 3,510.9 | ||||||||
Purchased
Electricity | 210.1 | 218.7 | 603.5 | 660.0 | ||||||||||||
Amortization of Generation Deferrals | 8.8 | 56.9 | 65.3 | 171.9 | ||||||||||||
Gross
Margin | 967.7 | 935.9 | 2,785.5 | 2,679.0 | ||||||||||||
Other Operation and Maintenance | 405.8 | 420.4 | 1,222.1 | 1,152.1 | ||||||||||||
Depreciation
and Amortization | 209.3 | 201.4 | 586.4 | 558.4 | ||||||||||||
Taxes Other Than Income Taxes | 151.8 | 143.2 | 437.2 | 413.2 | ||||||||||||
Operating
Income | 200.8 | 170.9 | 539.8 | 555.3 | ||||||||||||
Interest and Investment Income | 1.1 | 1.3 | 4.2 | 2.6 | ||||||||||||
Carrying
Costs Income | 0.3 | 0.2 | 0.7 | 1.5 | ||||||||||||
Allowance for Equity Funds Used During Construction | 9.8 | 7.8 | 22.3 | 23.0 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | 7.7 | 8.3 | 22.8 | 24.6 | ||||||||||||
Interest
Expense | (63.6 | ) | (63.5 | ) | (170.8 | ) | (185.6 | ) | ||||||||
Income Before Income Tax Expense (Benefit) | 156.1 | 125.0 | 419.0 | 421.4 | ||||||||||||
Income
Tax Expense (Benefit) | 22.4 | (20.2 | ) | (2.6 | ) | 36.8 | ||||||||||
Net Income | 133.7 | 145.2 | 421.6 | 384.6 | ||||||||||||
Net
Income Attributable to Noncontrolling Interests | — | — | — | — | ||||||||||||
Earnings Attributable
to AEP Common Shareholders | $ | 133.7 | $ | 145.2 | $ | 421.6 | $ | 384.6 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 8,268 | 7,948 | 20,614 | 21,154 | |||||||
Commercial | 7,219 | 6,958 | 19,069 | 19,061 | |||||||
Industrial | 5,857 | 5,904 | 17,492 | 17,772 | |||||||
Miscellaneous | 223 | 209 | 595 | 574 | |||||||
Total
Retail (a)(b) | 21,567 | 21,019 | 57,770 | 58,561 | |||||||
Wholesale
(c) | 453 | 634 | 1,531 | 1,835 | |||||||
Total
KWhs | 22,020 | 21,653 | 59,301 | 60,396 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Represents energy delivered to distribution customers. |
(c) | Primarily Ohio’s contractually obligated purchases of OVEC power sold to PJM. |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Eastern Region | |||||||||||
Actual – Heating (a) | — | — | 2,006 | 2,158 | |||||||
Normal
– Heating (b) | 6 | 6 | 2,072 | 2,076 | |||||||
Actual
– Cooling (c) | 872 | 864 | 1,176 | 1,322 | |||||||
Normal – Cooling (b) | 672 | 670 | 973 | 964 | |||||||
Western
Region | |||||||||||
Actual – Heating (a) | — | — | 180 | 234 | |||||||
Normal
– Heating (b) | — | — | 190 | 194 | |||||||
Actual
– Cooling (d) | 1,587 | 1,424 | 2,679 | 2,612 | |||||||
Normal – Cooling (b) | 1,368 | 1,367 | 2,425 | 2,413 | |||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Eastern Region cooling degree days are calculated on a 65 degree temperature base. |
(d) | Western Region cooling degree days are calculated on a 70 degree
temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Earnings Attributable to AEP Common Shareholders from Transmission and Distribution Utilities | ||||
(in
millions) | ||||
Third Quarter of 2018 | $ | 145.2 | ||
Changes in Gross Margin: | ||||
Retail
Margins | 2.2 | |||
Margins from Off-system Sales | 4.6 | |||
Transmission Revenues | 17.3 | |||
Other Revenues | 7.7 | |||
Total
Change in Gross Margin | 31.8 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 14.6 | |||
Depreciation
and Amortization | (7.9 | ) | ||
Taxes Other Than Income Taxes | (8.6 | ) | ||
Interest and Investment Income | (0.2 | ) | ||
Carrying Costs Income | 0.1 | |||
Allowance
for Equity Funds Used During Construction | 2.0 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.6 | ) | ||
Interest Expense | (0.1 | ) | ||
Total Change
in Expenses and Other | (0.7 | ) | ||
Income Tax Expense (Benefit) | (42.6 | ) | ||
Third
Quarter of 2019 | $ | 133.7 | ||
• | Retail Margins increased $2 million primarily
due to the following: |
• | A $27 million net increase primarily due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below. |
• | A $12 million increase due to the recovery of higher current year losses from a power contract with OVEC in Ohio. This increase was offset in Margins from Off-system Sales below. |
• | A
$9 million increase in revenues associated with Ohio smart grid riders. This increase was partially offset in other expense items below. |
• | An $8 million increase in weather-related usage in Texas primarily due to an 11% increase in cooling degree days. |
• | A $6 million increase in weather-normalized margins primarily in the residential class. |
• | A
$4 million increase in Ohio rider revenues associated with the DIR. This decrease was partially offset in other expense items below. |
• | A $3 million increase in Ohio Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset by a corresponding increase in Other Operation and Maintenance expenses below. |
• | A $28 million net decrease in Ohio Basic Transmission Cost Rider revenues and recoverable PJM expenses. This
decrease was partially offset in Other Operation and Maintenance expenses below. |
• | A $13 million decrease in Ohio Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below. |
• | An $8 million net decrease in margin in Ohio for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019. |
• | A
$6 million decrease in revenues associated with a vegetation management rider in Ohio. This decrease was offset in Other Operation and Maintenance expenses below. |
• | A $6 million net decrease in margin in Ohio for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019. |
• | A $6 million decrease in affiliated PPA capacity revenues in Texas. This decrease was offset in Margins from Off-system Sales below. |
• | Margins
from Off-system Sales increased $5 million primarily due to the following: |
• | A $17 million increase due to higher affiliated PPA revenues in Texas. This increase was partially offset by in Other Operation and Maintenance expenses below. |
• | A $12 million decrease primarily due to higher current year losses from a power contract with OVEC and lower deferrals as a
result of the OVEC PPA rider in Ohio. This decrease was offset in Retail Margins above. |
• | Transmission Revenues increased $17 million primarily due to the recovery of increased transmission investment in ERCOT. |
• | Other Revenues increased $8 million primarily due to securitization revenue related to Transition Funding. This decrease was offset below in Depreciation and Amortization
expenses and in Interest Expense. |
• | Other Operation and Maintenance expenses decreased $15 million primarily due to the following: |
• | A $29 million decrease in transmission
expenses that were fully recovered in rate riders/trackers in Gross Margin above. |
• | A $4 million decrease due to higher charitable contributions in 2018 in Ohio. |
• | A $16 million increase in affiliated PPA expenses in Texas. This increase was offset by an increase in Margins from Off-system Sales above. |
• | A
$12 million increase in PJM expenses primarily related to the annual formula rate true-up. |
• | Depreciation and Amortization expenses increased $8 million primarily due to the following: |
• | A $15 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets. |
• | A
$7 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below. |
• | An $8 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider in Ohio which ended in the second quarter of 2019. This decrease was offset in Retail Margins above. |
• | A $6
million decrease in Ohio recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above. |
• | Taxes Other Than Income Taxes increased $9 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates. |
• | Interest Expense was unchanged primarily due to the following: |
• | A
$5 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. |
• | A $3 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset in Other Revenues and Depreciation and Amortization expenses above. |
• | A $6 million increase due to higher long-term
debt balances. |
• | Income Tax Expense (Benefit) decreased $43 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above. |
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Earnings Attributable to AEP Common Shareholders from Transmission and Distribution Utilities | ||||
(in millions) | ||||
Nine
Months Ended September 30, 2018 | $ | 384.6 | ||
Changes in Gross Margin: | ||||
Retail
Margins | (9.3 | ) | ||
Margins from Off-system Sales | 38.5 | |||
Transmission Revenues | 68.2 | |||
Other Revenues | 9.1 | |||
Total
Change in Gross Margin | 106.5 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | (70.0 | ) | ||
Depreciation
and Amortization | (28.0 | ) | ||
Taxes Other Than Income Taxes | (24.0 | ) | ||
Interest and Investment Income | 1.6 | |||
Carrying Costs Income | (0.8 | ) | ||
Allowance
for Equity Funds Used During Construction | (0.7 | ) | ||
Non-Service Cost Components of Net Periodic Benefit Cost | (1.8 | ) | ||
Interest Expense | 14.8 | |||
Total Change
in Expenses and Other | (108.9 | ) | ||
Income Tax Expense (Benefit) | 39.4 | |||
Nine
Months Ended September 30, 2019 | $ | 421.6 | ||
• | Retail Margins decreased
$9 million primarily due to the following: |
• | A $71 million net decrease in Ohio Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below. |
• | An $18 million decrease in revenues associated with a vegetation management rider in Ohio. This decrease was offset in Other Operation and Maintenance expenses below. |
• | A
$17 million decrease in affiliated PPA capacity revenues in Texas. This decrease was offset in Margins from Off-system Sales below. |
• | A $16 million net decrease in margin in Ohio for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019. |
• | A $13 million decrease in Ohio Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below. |
• | A
$12 million net decrease in margin in Ohio for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019. |
• | A $7 million decrease in Texas revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset in Other Operation and Maintenance expenses below. |
• | A $5 million decrease in weather-related usage in Texas primarily due to a 23% decrease in heating degree days partially offset by a 3% increase in cooling degree days. |
• | A
$4 million decrease in Ohio rider revenues associated with the DIR. This decrease was partially offset in other expense items below. |
• | A $58 million increase due to a reversal of a regulatory provision in Ohio. |
• | A $33 million net increase due to 2018
adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below. |
• | A $31 million increase in revenues associated with Ohio smart grid riders. This increase was partially offset in other expense items below. |
• | A $21 million increase due to the recovery of higher current year losses from a power contract with OVEC in Ohio. This increase was offset in Margins from
Off-system Sales below. |
• | A $9 million increase in Ohio Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset in Other Operation and Maintenance expenses below. |
• | Margins from Off-system Sales increased $39 million primarily due to the following: |
• | A
$59 million increase due to higher affiliated PPA revenues in Texas. This increase was partially offset in Other Operation and Maintenance expenses below. |
• | A $21 million decrease primarily due to higher current year losses from a power contract with OVEC as a result of the OVEC PPA rider in Ohio. This decrease was offset in Retail Margins above. |
• | Transmission Revenues increased $68
million primarily due to the following: |
• | A $62 million increase primarily due to recovery of increased transmission investment in ERCOT. |
• | A $6 million increase in Ohio primarily due to 2018 provisions for refunds. |
• | Other Revenues increased
$9 million primarily due to distribution connection fees and pole attachment revenues. |
• | Other Operation and Maintenance expenses increased $70 million primarily due to the following: |
• | A
$64 million increase in expense due to the partial amortization of the Texas Storm Cost Securitization regulatory asset as a result of the final PUCT order in the Texas Storm Cost Case. This increase was offset in Income Tax Expense (Benefit) below. |
• | A $57 million increase in PJM expenses primarily related to the annual formula rate true-up. |
• | A $49 million increase in affiliated PPA expenses in Texas. This increase was offset in Margins from Off-system Sales above. |
• | A $93 million decrease in transmission expenses that were fully recovered in rate riders/trackers in Gross Margin above. |
• | Depreciation and Amortization expenses increased $28 million primarily due to the following: |
• | A
$51 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets. |
• | A $9 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below. |
• | A $7 million increase in depreciation expense related to the Oklaunion Power Station. |
• | A
$30 million decrease in Ohio recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above. |
• | An $11 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider which ended in the second quarter of 2019. This decrease was offset in Retail Margins above. |
• | Taxes Other Than Income Taxes increased $24 million primarily due to an increase in property taxes driven by additional investments
in transmission and distribution assets and higher tax rates. |
• | Interest Expense decreased $15 million primarily due to the following: |
• | A $21 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. |
• | An
$8 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset in Other Revenues and Depreciation and Amortization expenses above. |
• | A $14 million increase due to higher long-term debt balances. |
• | Income Tax
Expense (Benefit) decreased $39 million primarily due to the following: |
• | A $64 million decrease due to the amortization of Excess ADIT not subject to normalization requirements as approved in the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. This increase was offset in Other Operation and Maintenance expenses above. |
• | A $30
million increase primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
AEP Transmission Holdco | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | ||||||||||||||||
Transmission Revenues | $ | 273.0 | $ | 187.2 | $ | 808.3 | $ | 605.2 | ||||||||
Other
Operation and Maintenance | 31.8 | 30.9 | 77.0 | 76.2 | ||||||||||||
Depreciation and Amortization | 47.3 | 34.4 | 133.7 | 100.0 | ||||||||||||
Taxes
Other Than Income Taxes | 44.3 | 36.3 | 130.4 | 106.5 | ||||||||||||
Operating Income | 149.6 | 85.6 | 467.2 | 322.5 | ||||||||||||
Other
Income | 0.8 | 0.4 | 2.3 | 1.1 | ||||||||||||
Allowance for Equity Funds Used During Construction | 21.0 | 13.8 | 61.1 | 45.4 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | 0.7 | 0.7 | 2.0 | 2.1 | ||||||||||||
Interest Expense | (27.8 | ) | (24.2 | ) | (73.8 | ) | (66.8 | ) | ||||||||
Income
Before Income Tax Expense and Equity Earnings | 144.3 | 76.3 | 458.8 | 304.3 | ||||||||||||
Income
Tax Expense | 35.4 | 19.2 | 105.7 | 75.0 | ||||||||||||
Equity Earnings of Unconsolidated Subsidiary | 18.1 | 17.1 | 54.5 | 51.6 | ||||||||||||
Net
Income | 127.0 | 74.2 | 407.6 | 280.9 | ||||||||||||
Net Income Attributable to Noncontrolling
Interests | 0.9 | 0.9 | 2.8 | 2.5 | ||||||||||||
Earnings Attributable to AEP Common Shareholders | $ | 126.1 | $ | 73.3 | $ | 404.8 | $ | 278.4 | ||||||||
2019 | 2018 | |||||||
(in
millions) | ||||||||
Plant in Service | $ | 7,796.9 | $ | 6,307.3 | ||||
Construction Work in Progress | 1,903.4 | 1,823.0 | ||||||
Accumulated
Depreciation and Amortization | 383.7 | 244.3 | ||||||
Total Transmission Property, Net | $ | 9,316.6 | $ | 7,886.0 | ||||
Third Quarter of 2018 | $ | 73.3 | ||
Changes
in Transmission Revenues: | ||||
Transmission Revenues | 85.8 | |||
Total Change in Transmission Revenues | 85.8 | |||
Changes
in Expenses and Other: | ||||
Other Operation and Maintenance | (0.9 | ) | ||
Depreciation and Amortization | (12.9 | ) | ||
Taxes Other Than Income Taxes | (8.0 | ) | ||
Other
Income | 0.4 | |||
Allowance for Equity Funds Used During Construction | 7.2 | |||
Interest Expense | (3.6 | ) | ||
Total Change in Expenses and Other | (17.8 | ) | ||
Income
Tax Expense | (16.2 | ) | ||
Equity Earnings of Unconsolidated Subsidiary | 1.0 | |||
Third Quarter of 2019 | $ | 126.1 | ||
• | Transmission Revenues increased $86 million primarily due to continued investment in transmission assets. |
• | Depreciation
and Amortization expenses increased $13 million primarily due to a higher depreciable base. |
• | Taxes Other Than Income Taxes increased $8 million primarily due to higher property taxes as a result of increased transmission investment. |
• | Allowance for Equity Funds Used During Construction increased $7 million
primarily due to higher CWIP balances. |
• | Interest Expense increased $4 million primarily due to higher long-term debt balances. |
• | Income Tax Expense increased $16 million primarily due to higher pretax book income. |
Nine
Months Ended September 30, 2018 | $ | 278.4 | ||
Changes in Transmission Revenues: | ||||
Transmission Revenues | 203.1 | |||
Total
Change in Transmission Revenues | 203.1 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | (0.8 | ) | ||
Depreciation
and Amortization | (33.7 | ) | ||
Taxes Other Than Income Taxes | (23.9 | ) | ||
Other Income | 1.2 | |||
Allowance for Equity Funds Used During Construction | 15.7 | |||
Non-Service
Cost Components of Net Periodic Pension Cost | (0.1 | ) | ||
Interest Expense | (7.0 | ) | ||
Total Change in Expenses and Other | (48.6 | ) | ||
Income
Tax Expense | (30.7 | ) | ||
Equity Earnings of Unconsolidated Subsidiary | 2.9 | |||
Net Income Attributable to Noncontrolling Interests | (0.3 | ) | ||
Nine
Months Ended September 30, 2019 | $ | 404.8 | ||
• | Transmission Revenues increased
$203 million primarily due to continued investment in transmission assets. |
• | Depreciation and Amortization expenses increased $34 million primarily due to a higher depreciable base. |
• | Taxes
Other Than Income Taxes increased $24 million primarily due to higher property taxes as a result of increased transmission investment. |
• | Allowance for Equity Funds Used During Construction increased $16 million primarily due to the following: |
• | A $13 million increase primarily due to higher CWIP balances. |
• | A
$12 million increase due to the FERC’s approval of a settlement agreement. |
• | A $13 million decrease due to recent FERC audit findings. |
• | Interest Expense increased $7 million primarily due to higher long-term debt balances. |
• | Income
Tax Expense increased $31 million primarily due to higher pretax book income with a partial offset due to the FERC’s approval of a settlement agreement. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Generation & Marketing | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | ||||||||||||||||
Revenues | $ | 533.7 | $ | 521.6 | $ | 1,428.2 | $ | 1,487.4 | ||||||||
Fuel,
Purchased Electricity and Other | 403.8 | 405.0 | 1,117.8 | 1,167.8 | ||||||||||||
Gross Margin | 129.9 | 116.6 | 310.4 | 319.6 | ||||||||||||
Other
Operation and Maintenance | 44.0 | 68.2 | 158.0 | 192.6 | ||||||||||||
Asset Impairments and Other
Related Charges | — | 35.0 | — | 35.0 | ||||||||||||
Depreciation and Amortization | 20.6 | 12.0 | 49.1 | 26.4 | ||||||||||||
Taxes
Other Than Income Taxes | 4.4 | 3.7 | 11.8 | 10.3 | ||||||||||||
Operating Income (Loss) | 60.9 | (2.3 | ) | 91.5 | 55.3 | |||||||||||
Interest
and Investment Income | 1.9 | 3.6 | 6.0 | 9.9 | ||||||||||||
Non-Service Cost Components of
Net Periodic Benefit Cost | 3.8 | 3.8 | 11.2 | 11.5 | ||||||||||||
Interest Expense | (10.5 | ) | (3.8 | ) | (21.5 | ) | (11.7 | ) | ||||||||
Income
Before Income Tax Expense (Benefit) and Equity Earnings (Loss) | 56.1 | 1.3 | 87.2 | 65.0 | ||||||||||||
Income
Tax Expense (Benefit) | (36.4 | ) | (3.6 | ) | (51.8 | ) | 3.7 | |||||||||
Equity Earnings (Loss) of Unconsolidated
Subsidiaries | (3.8 | ) | 0.2 | (5.9 | ) | 0.5 | ||||||||||
Net Income | 88.7 | 5.1 | 133.1 | 61.8 | ||||||||||||
Net
Loss Attributable to Noncontrolling Interests | (1.3 | ) | (0.2 | ) | (6.4 | ) | (0.5 | ) | ||||||||
Earnings Attributable
to AEP Common Shareholders | $ | 90.0 | $ | 5.3 | $ | 139.5 | $ | 62.3 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of MWhs) | |||||||||||
Fuel Type: | |||||||||||
Coal | 2 | 4 | 4 | 10 | |||||||
Renewables | 1 | — | 2 | 1 | |||||||
Total
MWhs | 3 | 4 | 6 | 11 | |||||||
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Earnings Attributable to AEP Common Shareholders from Generation & Marketing | ||||
(in millions) | ||||
Third
Quarter of 2018 | $ | 5.3 | ||
Changes in Gross Margin: | ||||
Generation | (10.6 | ) | ||
Retail,
Trading and Marketing | 12.9 | |||
Other Revenues | 11.0 | |||
Total Change in Gross Margin | 13.3 | |||
Changes
in Expenses and Other: | ||||
Other Operation and Maintenance | 24.2 | |||
Asset Impairments and Other Related Charges | 35.0 | |||
Depreciation and Amortization | (8.6 | ) | ||
Taxes
Other Than Income Taxes | (0.7 | ) | ||
Interest and Investment Income | (1.7 | ) | ||
Interest Expense | (6.7 | ) | ||
Total Change in Expenses and Other | 41.5 | |||
Income
Tax Expense (Benefit) | 32.8 | |||
Equity Earnings (Loss) of Unconsolidated Subsidiaries | (4.0 | ) | ||
Net Loss Attributable to Noncontrolling Interests | 1.1 | |||
Third
Quarter of 2019 | $ | 90.0 | ||
• | Generation decreased
$11 million primarily due to reduction in capacity revenues in 2019 partially due to the retirement of Conesville Units 5 & 6 in 2019. |
• | Retail, Trading and Marketing increased $13 million due to higher trading and marketing activity in 2019. |
• | Other Revenues increased $11 million primarily due to the Sempra Renewables LLC acquisition and other renewable projects placed in-service. |
• | Other Operation and Maintenance expenses decreased $24 million due to the following: |
• | A $20 million decrease due to the retirement of Conesville Units 5 & 6 in 2019. |
• | An
$11 million decrease due to the retirement of Stuart Plant in June of 2018. |
• | A $7 million increase due to the acquisitions of Sempra Renewables LLC and Santa Rita East. |
• | Asset Impairment and Other Related Charges decreased $35 million due to the impairment of Racine in the third quarter of 2018. |
• | Depreciation
and Amortization expenses increased $9 million due to a higher depreciable base from increased investments in wind farms and renewable energy sources. |
• | Interest Expense increased $7 million primarily due to increased borrowing costs related to the Sempra Renewables LLC acquisition. |
• | Income Tax Expense (Benefit) decreased $33 million primarily due to an increase in projected renewable PTC primarily driven by the Sempra Renewables LLC acquisition
partially offset by an increase in pretax book income. |
• | Equity Earnings (Loss) of Unconsolidated Subsidiaries decreased $4 million primarily due to the Sempra Renewables LLC acquisition. |
Reconciliation
of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Earnings Attributable to AEP Common Shareholders from Generation & Marketing | ||||
(in millions) | ||||
Nine Months Ended September 30, 2018 | $ | 62.3 | ||
Changes
in Gross Margin: | ||||
Generation | (55.1 | ) | ||
Retail, Trading and Marketing | 28.0 | |||
Other Revenues | 17.9 | |||
Total
Change in Gross Margin | (9.2 | ) | ||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 34.6 | |||
Asset
Impairments and Other Related Charges | 35.0 | |||
Depreciation and Amortization | (22.7 | ) | ||
Taxes Other Than Income Taxes | (1.5 | ) | ||
Interest and Investment
Income | (3.9 | ) | ||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.3 | ) | ||
Interest Expense | (9.8 | ) | ||
Total Change in Expenses and Other | 31.4 | |||
Income
Tax Expense (Benefit) | 55.5 | |||
Equity Earnings (Loss) of Unconsolidated Subsidiaries | (6.4 | ) | ||
Net Loss Attributable to Noncontrolling Interests | 5.9 | |||
Nine
Months Ended September 30, 2019 | $ | 139.5 | ||
• | Generation
decreased $55 million primarily due to the reduction of capacity revenues and energy margins in 2019, a reduction in revenues due to the retirement of the Stuart Plant in 2018 and the retirement of Conesville Units 5 & 6 in 2019. |
• | Retail, Trading and Marketing increased $28 million primarily due to higher retail margins due to lower market costs and higher delivered volumes and higher marketing activity in 2019. |
• | Other Revenues increased
$18 million primarily due to the Sempra Renewables LLC acquisition and other renewable projects placed in-service. |
• | Other Operation and Maintenance expenses decreased $35 million due to the following: |
• | A
$40 million decrease due to the retirement of Conesville Units 5 & 6 in 2019. |
• | A $15 million decrease due to the retirement of Stuart Plant in June of 2018. |
• | A $20 million increase due to the acquisitions of Sempra Renewables LLC and Santa Rita East. |
• | Asset
Impairment and Other Related Charges decreased $35 million due to the impairment of Racine in the third quarter of 2018. |
• | Depreciation and Amortization expenses increased $23 million due to a higher depreciable base from increased investments in wind farms and renewable energy sources. |
• | Interest and Investment Income decreased $4 million primarily due to a reduction in Advances to Affiliates which was driven by a dividend payment made to Parent
in 2018. |
• | Interest Expense increased $10 million primarily due to increased borrowing costs related to the Sempra Renewables LLC acquisition. |
• | Income Tax Expense (Benefit) decreased $56 million primarily due to an increase in projected renewable PTC primarily driven by the Sempra Renewables
LLC acquisition partially offset by an increase in pretax book income. |
• | Equity Earnings (Loss) of Unconsolidated Subsidiaries decreased $6 million primarily due to the Sempra Renewables LLC acquisition. |
• | Net Loss Attributable to Noncontrolling Interests increased $6 million primarily due to the Sempra Renewables LLC acquisition. |
• | A $40 million increase in income tax expense due to an increase in consolidating tax adjustments. This increase is offset primarily within the Generation
& Marketing segment. |
• | A $20 million increase in interest expense as a result of increased debt outstanding. |
• | A $63 million increase in income tax expense primarily due to the following: |
• | A $30 million increase due to an increase in consolidating tax adjustments. This increase is offset primarily within the Generation & Marketing segment. |
• | An
$18 million increase related to the enactment of the Kentucky state tax legislation in the second quarter of 2018. |
• | A $10 million increase due to an increase in the allocation of the parent company loss benefit due to the tax sharing agreement with AEP Subsidiaries. |
• | A $5 million increase due to the current year revaluation of AEP’s state deferred tax liability as a result of the state income tax filing requirement in Kansas associated with the Sempra Renewables LLC acquisition. |
• | A
$55 million increase in interest expense as a result of increased debt outstanding. |
• | A $5 million impairment of an equity investment and related assets in 2019. |
• | A $20 million impairment of an equity investment and related assets in 2018. |
• | An
$8 million increase in interest income due to a higher return on investments held by EIS. |
(dollars in millions) | |||||||||||||
Long-term Debt, including amounts due within one year | $ | 25,881.2 | 53.5 | % | $ | 23,346.7 | 52.7 | % | |||||
Short-term
Debt | 2,510.0 | 5.2 | 1,910.0 | 4.3 | |||||||||
Total Debt | 28,391.2 | 58.7 | 25,256.7 | 57.0 | |||||||||
AEP
Common Equity | 19,716.4 | 40.7 | 19,028.4 | 42.9 | |||||||||
Noncontrolling Interests | 281.3 | 0.6 | 31.0 | 0.1 | |||||||||
Total
Debt and Equity Capitalization | $ | 48,388.9 | 100.0 | % | $ | 44,316.1 | 100.0 | % | |||||
Amount | Maturity | |||||
Commercial Paper Backup: | (in millions) | |||||
Revolving
Credit Facility | $ | 4,000.0 | June 2022 | |||
Cash and Cash Equivalents | 348.8 | |||||
Total Liquidity Sources | 4,348.8 | |||||
Less: | AEP
Commercial Paper Outstanding | 1,760.0 | ||||
Net Available Liquidity | $ | 2,588.8 | ||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in
millions) | |||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | $ | 444.1 | $ | 412.6 | |||
Net Cash Flows from Operating Activities | 3,349.9 | 3,932.6 | |||||
Net
Cash Flows Used for Investing Activities | (5,357.6 | ) | (4,688.7 | ) | |||
Net Cash Flows from Financing Activities | 2,053.4 | 1,281.0 | |||||
Net Increase in
Cash, Cash Equivalents and Restricted Cash | 45.7 | 524.9 | |||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 489.8 | $ | 937.5 | |||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in millions) | |||||||
Net
Income | $ | 1,767.1 | $ | 1,566.5 | |||
Non-Cash Adjustments to Net Income (a) | 1,838.8 | 1,728.7 | |||||
Mark-to-Market
of Risk Management Contracts | (41.6 | ) | (95.4 | ) | |||
Property Taxes | 341.7 | 304.8 | |||||
Deferred Fuel Over/Under-Recovery, Net | 93.7 | 210.6 | |||||
Recovery
of Ohio Capacity Costs | 34.1 | 52.7 | |||||
Refund of Global Settlement | (12.4 | ) | (5.5 | ) | |||
Change in Other Noncurrent Assets | (9.6 | ) | 161.6 | ||||
Change
in Other Noncurrent Liabilities | (16.3 | ) | 141.9 | ||||
Change in Certain Components of Working Capital | (645.6 | ) | (133.3 | ) | |||
Net Cash Flows from Operating
Activities | $ | 3,349.9 | $ | 3,932.6 | |||
(a) | Non-Cash Adjustments to Net Income includes Depreciation and Amortization, Deferred Income Taxes, AFUDC and Amortization of Nuclear Fuel. |
• | A $512 million decrease in cash from Change in Certain Components of Working Capital. The decrease is primarily due to increase in purchases of fuel, material and supplies, decreased accrued taxes, higher employee-related payments and refund related to Tax Reform, partially offset by receivables due to the changes in timing. |
• | A $171 million decrease in cash from Change
in Other Noncurrent Assets primarily due to a change in regulatory assets as a result of AEP subsidiaries with rider recovery mechanisms. See Note 4 - Rate Matters for additional information. |
• | A $158 million decrease in cash from Change in Other Noncurrent Liabilities primarily due to decreased Accumulated Provisions for Rate Refunds as a result of Tax Reform |
• | A $117 million decrease in cash from Deferred Fuel Over/Under Recovery, Net primarily due to fluctuations APCo and WPCo as a result of the 2018 West Virginia
Tax Reform Order, the full recovery of Ohio Phase in recovery rider and the fluctuations of fuel and purchase power cost at PSO. |
• | A $310 million increase in cash from Income from Continuing Operations, after non-cash adjustments. See Results of Operations for further detail. |
Nine
Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in millions) | |||||||
Construction Expenditures | $ | (4,336.0 | ) | $ | (4,688.4 | ) | |
Acquisitions
of Nuclear Fuel | (91.9 | ) | (26.1 | ) | |||
Acquisition of Sempra Renewables LLC and Santa Rita East, net of cash and restricted cash acquired | (921.3 | ) | — | ||||
Other | (8.4 | ) | 25.8 | ||||
Net
Cash Flows Used for Investing Activities | $ | (5,357.6 | ) | $ | (4,688.7 | ) | |
• | A
$921 million increase due to the acquisition of Sempra Renewables LLC and Santa Rita East. The $921 million represents a cash payment of $939 million, net of cash and restricted cash acquired of $18 million. See Note 6 - Acquisitions and Impairments for additional information. |
• | A $352 million decrease due to decreased construction expenditures, primarily driven by decreases at AEP Transmission Holdco of $210 million and Transmission and Distribution Utilities of $109 million. |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in millions) | |||||||
Issuance
of Common Stock | $ | 44.7 | $ | 62.5 | |||
Issuance/Retirement of Debt, Net | 3,063.9 | 2,206.2 | |||||
Dividends
Paid on Common Stock | (1,002.0 | ) | (922.5 | ) | |||
Other | (53.2 | ) | (65.2 | ) | |||
Net Cash Flows from Financing Activities | $ | 2,053.4 | $ | 1,281.0 | |||
• | A $936 million increase in cash due to decreased retirements of long-term debt. See Note 13 - Financing Activities for additional information. |
• | An $80 million decrease in issuances
of long-term debt. See Note 13 - Financing Activities for additional information. |
• | An $80 million decrease in cash due to the increased common stock dividends payments primarily due to increase dividends per share from 2018 to 2019. |
MTM
Risk Management Contract Net Assets (Liabilities) | |||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | Generation
& Marketing | Total | ||||||||||||
(in millions) | |||||||||||||||
Total MTM Risk Management Contract Net Assets (Liabilities) as of December 31, 2018 | $ | 90.9 | $ | (101.0 | ) | $ | 164.5 | $ | 154.4 | ||||||
Gain
from Contracts Realized/Settled During the Period and Entered in a Prior Period | (65.5 | ) | (5.0 | ) | (14.3 | ) | (84.8 | ) | |||||||
Fair Value of New Contracts at Inception When Entered
During the Period (a) | — | — | 8.8 | 8.8 | |||||||||||
Changes in Fair Value Due to Market Fluctuations During the Period (b) | — | — | 12.8 | 12.8 | |||||||||||
Changes
in Fair Value Allocated to Regulated Jurisdictions (c) | 76.9 | (7.2 | ) | — | 69.7 | ||||||||||
Total MTM Risk Management Contract Net Assets (Liabilities) as of September 30,
2019 | $ | 102.3 | $ | (113.2 | ) | $ | 171.8 | 160.9 | |||||||
Commodity
Cash Flow Hedge Contracts | (97.3 | ) | |||||||||||||
Interest Rate Cash Flow Hedge Contracts | 1.9 | ||||||||||||||
Fair
Value Hedge Contracts | 25.1 | ||||||||||||||
Collateral Deposits | 21.2 | ||||||||||||||
Total
MTM Derivative Contract Net Assets as of September 30, 2019 | $ | 111.8 | |||||||||||||
(a) | Reflects
fair value on primarily long-term structured contracts which are typically with customers that seek fixed pricing to limit their risk against fluctuating energy prices. The contract prices are valued against market curves associated with the delivery location and delivery term. A significant portion of the total volumetric position has been economically hedged. |
(b) | Market fluctuations are attributable to various factors such as supply/demand, weather, etc. |
(c) | Relates to the net gains (losses) of those contracts that
are not reflected on the statements of income. These net gains (losses) are recorded as regulatory liabilities/assets or accounts payable. |
Counterparty
Credit Quality | Exposure Before Credit Collateral | Credit Collateral | Net Exposure | Number of Counterparties >10% of Net Exposure | Net
Exposure of Counterparties >10% | ||||||||||||||
(in millions, except number of counterparties) | |||||||||||||||||||
Investment Grade | $ | 529.6 | $ | 0.3 | $ | 529.3 | 2 | $ | 218.3 | ||||||||||
Split
Rating | 0.8 | — | 0.8 | 1 | 0.8 | ||||||||||||||
No
External Ratings: | |||||||||||||||||||
Internal
Investment Grade | 138.2 | — | 138.2 | 3 | 84.2 | ||||||||||||||
Internal
Noninvestment Grade | 56.2 | 10.5 | 45.7 | 2 | 30.1 | ||||||||||||||
Total
as of September 30, 2019 | $ | 724.8 | $ | 10.8 | $ | 714.0 | |||||||||||||
Nine
Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
End | High | Average | Low | End | High | Average | Low | |||||||||||||||||||||||
(in
millions) | (in millions) | |||||||||||||||||||||||||||||
$ | 0.3 | $ | 1.2 | $ | 0.2 | $ | 0.1 | $ | 1.1 | $ | 1.8 | $ | 0.3 | $ | 0.1 | |||||||||||||||
Nine Months Ended | Twelve
Months Ended | |||||||||||||||||||||||||||||
End | High | Average | Low | End | High | Average | Low | |||||||||||||||||||||||
(in
millions) | (in millions) | |||||||||||||||||||||||||||||
$ | 0.2 | $ | 8.5 | $ | 1.3 | $ | 0.2 | $ | 4.0 | $ | 16.5 | $ | 2.7 | $ | 0.4 | |||||||||||||||
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Vertically
Integrated Utilities | $ | i 2,598.9 | $ | i 2,610.2 | $ | i 7,087.6 | $ | i 7,332.4 | ||||||||
Transmission
and Distribution Utilities | i 1,147.3 | i 1,180.9 | i 3,328.7 | i 3,450.0 | ||||||||||||
Generation
& Marketing | i 501.2 | i 486.5 | i 1,323.8 | i 1,399.3 | ||||||||||||
Other
Revenues | i 67.6 | i 55.5 | i 205.3 | i 212.9 | ||||||||||||
TOTAL
REVENUES | i 4,315.0 | i 4,333.1 | i 11,945.4 | i 12,394.6 | ||||||||||||
EXPENSES | ||||||||||||||||
Fuel
and Other Consumables Used for Electric Generation | i 631.2 | i 840.4 | i 1,662.5 | i 1,909.1 | ||||||||||||
Purchased
Electricity for Resale | i 783.9 | i 784.7 | i 2,306.4 | i 2,551.7 | ||||||||||||
Other
Operation | i 708.3 | i 826.0 | i 1,981.7 | i 2,332.7 | ||||||||||||
Maintenance | i 267.7 | i 316.6 | i 890.9 | i 911.0 | ||||||||||||
Depreciation
and Amortization | i 645.2 | i 602.6 | i 1,873.6 | i 1,695.5 | ||||||||||||
Taxes
Other Than Income Taxes | i 320.5 | i 294.2 | i 932.7 | i 863.0 | ||||||||||||
TOTAL
EXPENSES | i 3,356.8 | i 3,664.5 | i 9,647.8 | i 10,263.0 | ||||||||||||
OPERATING
INCOME | i 958.2 | i 668.6 | i 2,297.6 | i 2,131.6 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Other Income | i 3.2 | i 6.3 | i 18.4 | i 18.5 | ||||||||||||
Allowance
for Equity Funds Used During Construction | i 43.0 | i 30.9 | i 122.3 | i 92.4 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 30.0 | i 31.9 | i 90.0 | i 95.3 | ||||||||||||
Interest
Expense | ( i 275.1 | ) | ( i 256.8 | ) | ( i 781.6 | ) | ( i 733.1 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY EARNINGS | i 759.3 | i 480.9 | i 1,746.7 | i 1,604.7 | ||||||||||||
Income
Tax Expense (Benefit) | i 40.6 | ( i 80.7 | ) | i 30.7 | i 93.5 | |||||||||||
Equity
Earnings of Unconsolidated Subsidiaries | i 15.2 | i 18.1 | i 51.1 | i 55.3 | ||||||||||||
NET
INCOME | i 733.9 | i 579.7 | i 1,767.1 | i 1,566.5 | ||||||||||||
Net
Income (Loss) Attributable to Noncontrolling Interests | i 0.4 | i 2.1 | ( i 0.5 | ) | i 6.1 | |||||||||||
EARNINGS
ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS | $ | i 733.5 | $ | i 577.6 | $ | i 1,767.6 | $ | i 1,560.4 | ||||||||
WEIGHTED
AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING | i 493,839,034 | i 492,984,741 | i 493,579,430 | i 492,649,456 | ||||||||||||
TOTAL
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS | $ | i 1.49 | $ | i 1.17 | $ | i 3.58 | $ | i 3.17 | ||||||||
WEIGHTED
AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING | i 495,461,509 | i 493,940,543 | i 495,105,986 | i 493,526,937 | ||||||||||||
TOTAL
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS | $ | i 1.48 | $ | i 1.17 | $ | i 3.57 | $ | i 3.16 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September
30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Income | $ | i 733.9 | $ | i 579.7 | $ | i 1,767.1 | $ | i 1,566.5 | ||||||||
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of
Tax of $11.8 and $2.7 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(16.8) and $3.9 for the Nine Months Ended September 30, 2019 and 2018, Respectively | i 44.2 | i 10.2 | ( i 63.3 | ) | i 14.7 | |||||||||||
Amortization
of Pension and OPEB Deferred Costs, Net of Tax of $(0.4) and $(0.4) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(1.1) and $(1.1) for the Nine Months Ended September 30, 2019 and 2018, Respectively | ( i 1.4 | ) | ( i 1.4 | ) | ( i 4.2 | ) | ( i 4.0 | ) | ||||||||
TOTAL
OTHER COMPREHENSIVE INCOME (LOSS) | i 42.8 | i 8.8 | ( i 67.5 | ) | i 10.7 | |||||||||||
TOTAL
COMPREHENSIVE INCOME | i 776.7 | i 588.5 | i 1,699.6 | i 1,577.2 | ||||||||||||
Total
Other Comprehensive Income (Loss) Attributable To Noncontrolling Interests | i 0.4 | i 2.1 | ( i 0.5 | ) | i 6.1 | |||||||||||
TOTAL
OTHER COMPREHENSIVE INCOME ATTIBUTABLE TO AEP COMMON SHAREHOLDERS | $ | i 776.3 | $ | i 586.4 | $ | i 1,700.1 | $ | i 1,571.1 | ||||||||
AEP Common Shareholders | ||||||||||||||||||||||||||
Common
Stock | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Shares | Amount | Paid-in
Capital | Retained Earnings | Noncontrolling Interests | Total | |||||||||||||||||||||
TOTAL EQUITY – DECEMBER 31, 2017 | i 512.2 | $ | i 3,329.4 | $ | i 6,398.7 | $ | i 8,626.7 | $ | ( i 67.8 | ) | $ | i 26.6 | $ | i 18,313.6 | ||||||||||||
Issuance
of Common Stock | i 0.5 | i 3.3 | i 28.9 | i 32.2 | ||||||||||||||||||||||
Common
Stock Dividends | ( i 305.5 | ) | (b) | ( i 0.6 | ) | ( i 306.1 | ) | |||||||||||||||||||
Other
Changes in Equity | i 16.9 | i 16.9 | ||||||||||||||||||||||||
ASU
2018-02 Adoption | i 14.0 | ( i 17.0 | ) | ( i 3.0 | ) | |||||||||||||||||||||
ASU
2016-01 Adoption | i 11.9 | ( i 11.9 | ) | i — | ||||||||||||||||||||||
Net
Income | i 454.4 | i 2.3 | i 456.7 | |||||||||||||||||||||||
Other
Comprehensive Income | i 1.3 | i 1.3 | ||||||||||||||||||||||||
TOTAL
EQUITY – MARCH 31, 2018 | i 512.7 | i 3,332.7 | i 6,444.5 | i 8,801.5 | ( i 95.4 | ) | i 28.3 | i 18,511.6 | ||||||||||||||||||
Issuance
of Common Stock | i 0.4 | i 2.7 | i 16.0 | i 18.7 | ||||||||||||||||||||||
Common
Stock Dividends | ( i 306.8 | ) | (b) | ( i 1.3 | ) | ( i 308.1 | ) | |||||||||||||||||||
Other
Changes in Equity | ( i 1.9 | ) | i 0.4 | ( i 1.5 | ) | |||||||||||||||||||||
Net
Income | i 528.4 | i 1.7 | i 530.1 | |||||||||||||||||||||||
Other
Comprehensive Income | i 0.6 | i 0.6 | ||||||||||||||||||||||||
TOTAL
EQUITY – JUNE 30, 2018 | i 513.1 | i 3,335.4 | i 6,458.6 | i 9,023.1 | ( i 94.8 | ) | i 29.1 | i 18,751.4 | ||||||||||||||||||
Issuance
of Common Stock | i 0.2 | i 1.1 | i 10.5 | i 11.6 | ||||||||||||||||||||||
Common
Stock Dividends | ( i 307.0 | ) | (b) | ( i 1.3 | ) | ( i 308.3 | ) | |||||||||||||||||||
Other
Changes in Equity | i 3.5 | i 0.1 | i 3.6 | |||||||||||||||||||||||
Net
Income | i 577.6 | i 2.1 | i 579.7 | |||||||||||||||||||||||
Other
Comprehensive Income | i 8.8 | i 8.8 | ||||||||||||||||||||||||
TOTAL
EQUITY – SEPTEMBER 30, 2018 | i 513.3 | $ | i 3,336.5 | $ | i 6,472.6 | $ | i 9,293.7 | $ | ( i 86.0 | ) | $ | i 30.0 | $ | i 19,046.8 | ||||||||||||
TOTAL
EQUITY – DECEMBER 31, 2018 | i 513.5 | $ | i 3,337.4 | $ | i 6,486.1 | $ | i 9,325.3 | $ | ( i 120.4 | ) | $ | i 31.0 | $ | i 19,059.4 | ||||||||||||
Issuance
of Common Stock | i 0.1 | i 1.2 | i 13.3 | i 14.5 | ||||||||||||||||||||||
Common
Stock Dividends | ( i 332.5 | ) | (c) | ( i 1.1 | ) | ( i 333.6 | ) | |||||||||||||||||||
Other
Changes in Equity | ( i 56.6 | ) | (a) | i 1.0 | ( i 55.6 | ) | ||||||||||||||||||||
Net
Income | i 572.8 | i 1.3 | i 574.1 | |||||||||||||||||||||||
Other
Comprehensive Loss | ( i 30.3 | ) | ( i 30.3 | ) | ||||||||||||||||||||||
TOTAL
EQUITY – MARCH 31, 2019 | i 513.6 | i 3,338.6 | i 6,442.8 | i 9,565.6 | ( i 150.7 | ) | i 32.2 | i 19,228.5 | ||||||||||||||||||
Issuance
of Common Stock | i 0.4 | i 2.2 | i 15.6 | i 17.8 | ||||||||||||||||||||||
Common
Stock Dividends | ( i 332.7 | ) | (c) | ( i 1.8 | ) | ( i 334.5 | ) | |||||||||||||||||||
Other
Changes in Equity | ( i 3.1 | ) | i 0.6 | ( i 2.5 | ) | |||||||||||||||||||||
Acquisition
of Sempra Renewables LLC | i 134.8 | i 134.8 | ||||||||||||||||||||||||
Net
Income (Loss) | i 461.3 | ( i 2.2 | ) | i 459.1 | ||||||||||||||||||||||
Other
Comprehensive Loss | ( i 80.0 | ) | ( i 80.0 | ) | ||||||||||||||||||||||
TOTAL
EQUITY – JUNE 30, 2019 | i 514.0 | i 3,340.8 | i 6,455.3 | i 9,694.2 | ( i 230.7 | ) | i 163.6 | i 19,423.2 | ||||||||||||||||||
Issuance
of Common Stock | i 0.1 | i 1.1 | i 11.3 | i 12.4 | ||||||||||||||||||||||
Common
Stock Dividends | ( i 332.4 | ) | (c) | ( i 1.5 | ) | ( i 333.9 | ) | |||||||||||||||||||
Other
Changes in Equity | i 0.5 | i | i 0.5 | |||||||||||||||||||||||
Acquisition
of Santa Rita East | i 118.8 | i 118.8 | ||||||||||||||||||||||||
Net
Income | i 733.5 | i 0.4 | i 733.9 | |||||||||||||||||||||||
Other
Comprehensive Income | i 42.8 | i 42.8 | ||||||||||||||||||||||||
TOTAL
EQUITY – SEPTEMBER 30, 2019 | i 514.1 | $ | i 3,341.9 | $ | i 6,467.1 | $ | i 10,095.3 | $ | ( i 187.9 | ) | $ | i 281.3 | $ | i 19,997.7 | ||||||||||||
(a) | Includes
$(62) million related to a forward equity purchase contract associated with the issuance of Equity Units. See “Equity Units” section of Note 13 for additional information. |
(b) | Common Stock dividends declared per AEP common share were $0.62. |
(c) | Common Stock dividends declared per AEP common share were $0.67. |
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents | $ | i 348.8 | $ | i 234.1 | ||||
Restricted
Cash (September 30, 2019 and December 31, 2018 Amounts Include $141 and $210, Respectively, Related to Transition Funding, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding and Santa Rita East) | i 141.0 | i 210.0 | ||||||
Other
Temporary Investments (September 30, 2019 and December 31, 2018 Amounts Include $193.4 and $152.7, Respectively, Related to EIS and Transource Energy) | i 198.4 | i 159.1 | ||||||
Accounts
Receivable: | ||||||||
Customers | i 609.0 | i 699.0 | ||||||
Accrued
Unbilled Revenues | i 268.8 | i 209.3 | ||||||
Pledged
Accounts Receivable – AEP Credit | i 955.6 | i 999.8 | ||||||
Miscellaneous | i 36.6 | i 55.2 | ||||||
Allowance
for Uncollectible Accounts | ( i 44.9 | ) | ( i 36.8 | ) | ||||
Total
Accounts Receivable | i 1,825.1 | i 1,926.5 | ||||||
Fuel | i 437.8 | i 341.5 | ||||||
Materials
and Supplies | i 613.5 | i 579.6 | ||||||
Risk
Management Assets | i 186.7 | i 162.8 | ||||||
Regulatory
Asset for Under-Recovered Fuel Costs | i 98.5 | i 150.1 | ||||||
Margin
Deposits | i 54.2 | i 141.4 | ||||||
Prepayments
and Other Current Assets | i 262.4 | i 208.8 | ||||||
TOTAL
CURRENT ASSETS | i 4,166.4 | i 4,113.9 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Generation | i 22,624.4 | i 21,699.9 | ||||||
Transmission | i 23,082.8 | i 21,531.0 | ||||||
Distribution | i 21,991.0 | i 21,195.4 | ||||||
Other
Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel) | i 4,510.2 | i 4,265.0 | ||||||
Construction
Work in Progress | i 5,244.5 | i 4,393.9 | ||||||
Total
Property, Plant and Equipment | i 77,452.9 | i 73,085.2 | ||||||
Accumulated
Depreciation and Amortization | i 18,760.2 | i 17,986.1 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 58,692.7 | i 55,099.1 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 3,131.4 | i 3,310.4 | ||||||
Securitized
Assets | i 938.7 | i 920.6 | ||||||
Spent
Nuclear Fuel and Decommissioning Trusts | i 2,835.2 | i 2,474.9 | ||||||
Goodwill | i 52.5 | i 52.5 | ||||||
Long-term
Risk Management Assets | i 299.0 | i 254.0 | ||||||
Operating
Lease Assets | i 990.0 | i — | ||||||
Deferred
Charges and Other Noncurrent Assets | i 2,794.8 | i 2,577.4 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 11,041.6 | i 9,589.8 | ||||||
TOTAL
ASSETS | $ | i 73,900.7 | $ | i 68,802.8 | ||||
September
30, | |||||||||||||
2019 | 2018 | ||||||||||||
CURRENT LIABILITIES | |||||||||||||
Accounts
Payable | $ | i 1,766.8 | $ | i 1,874.3 | |||||||||
Short-term
Debt: | |||||||||||||
Securitized Debt for Receivables – AEP Credit | i 750.0 | i 750.0 | |||||||||||
Other
Short-term Debt | i 1,760.0 | i 1,160.0 | |||||||||||
Total
Short-term Debt | i 2,510.0 | i 1,910.0 | |||||||||||
Long-term
Debt Due Within One Year (September 30, 2019 and December 31, 2018 Amounts Include $544.7 and $406.5, Respectively, Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy, Sabine and Restoration Funding) | i 1,327.7 | i 1,698.5 | |||||||||||
Risk
Management Liabilities | i 75.3 | i 55.0 | |||||||||||
Customer
Deposits | i 381.4 | i 412.2 | |||||||||||
Accrued
Taxes | i 883.4 | i 1,218.0 | |||||||||||
Accrued
Interest | i 304.8 | i 231.7 | |||||||||||
Obligations
Under Operating Leases | i 228.8 | i — | |||||||||||
Regulatory
Liability for Over-Recovered Fuel Costs | i 100.6 | i 58.6 | |||||||||||
Other
Current Liabilities | i 1,032.4 | i 1,190.5 | |||||||||||
TOTAL
CURRENT LIABILITIES | i 8,611.2 | i 8,648.8 | |||||||||||
NONCURRENT
LIABILITIES | |||||||||||||
Long-term Debt (September 30, 2019 and December 31, 2018 Amounts Include $918.4 and $1,109.2, Respectively, Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy, Sabine and Restoration Funding) | i 24,553.5 | i 21,648.2 | |||||||||||
Long-term
Risk Management Liabilities | i 298.6 | i 263.4 | |||||||||||
Deferred
Income Taxes | i 7,427.8 | i 7,086.5 | |||||||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 8,552.8 | i 8,540.3 | |||||||||||
Asset
Retirement Obligations | i 2,353.5 | i 2,287.7 | |||||||||||
Employee
Benefits and Pension Obligations | i 376.6 | i 377.1 | |||||||||||
Obligations
Under Operating Leases | i 801.1 | i — | |||||||||||
Deferred
Credits and Other Noncurrent Liabilities | i 790.0 | i 782.6 | |||||||||||
TOTAL
NONCURRENT LIABILITIES | i 45,153.9 | i 40,985.8 | |||||||||||
TOTAL
LIABILITIES | i 53,765.1 | i 49,634.6 | |||||||||||
Rate
Matters (Note 4) | i | i | |||||||||||
Commitments
and Contingencies (Note 5) | i | i | |||||||||||
MEZZANINE
EQUITY | |||||||||||||
Redeemable Noncontrolling Interest | i 67.3 | i 69.4 | |||||||||||
Contingently
Redeemable Performance Share Awards | i 70.6 | i 39.4 | |||||||||||
TOTAL
MEZZANINE EQUITY | i 137.9 | i 108.8 | |||||||||||
EQUITY | |||||||||||||
Common
Stock – Par Value – $6.50 Per Share: | |||||||||||||
2019 | 2018 | ||||||||||||
Shares
Authorized | 600,000,000 | 600,000,000 | |||||||||||
Shares Issued | 514,140,235 | 513,450,036 | |||||||||||
(20,204,160
Shares were Held in Treasury as of September 30, 2019 and December 31, 2018, Respectively) | i 3,341.9 | i 3,337.4 | |||||||||||
Paid-in
Capital | i 6,467.1 | i 6,486.1 | |||||||||||
Retained
Earnings | i 10,095.3 | i 9,325.3 | |||||||||||
Accumulated
Other Comprehensive Income (Loss) | ( i 187.9 | ) | ( i 120.4 | ) | |||||||||
TOTAL
AEP COMMON SHAREHOLDERS’ EQUITY | i 19,716.4 | i 19,028.4 | |||||||||||
Noncontrolling
Interests | i 281.3 | i 31.0 | |||||||||||
TOTAL
EQUITY | i 19,997.7 | i 19,059.4 | |||||||||||
TOTAL
LIABILITIES, MEZZANINE EQUITY AND TOTAL EQUITY | $ | i 73,900.7 | $ | i 68,802.8 | |||||||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 1,767.1 | $ | i 1,566.5 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 1,873.6 | i 1,695.5 | ||||||
Deferred
Income Taxes | i 15.9 | i 43.0 | ||||||
Allowance
for Equity Funds Used During Construction | ( i 122.3 | ) | ( i 92.4 | ) | ||||
Mark-to-Market
of Risk Management Contracts | ( i 41.6 | ) | ( i 95.4 | ) | ||||
Amortization
of Nuclear Fuel | i 71.6 | i 82.6 | ||||||
Property
Taxes | i 341.7 | i 304.8 | ||||||
Deferred
Fuel Over/Under-Recovery, Net | i 93.7 | i 210.6 | ||||||
Recovery
of Ohio Capacity Costs | i 34.1 | i 52.7 | ||||||
Refund
of Global Settlement | ( i 12.4 | ) | ( i 5.5 | ) | ||||
Change
in Other Noncurrent Assets | ( i 9.6 | ) | i 161.6 | |||||
Change
in Other Noncurrent Liabilities | ( i 16.3 | ) | i 141.9 | |||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | i 125.0 | ( i 52.3 | ) | |||||
Fuel,
Materials and Supplies | ( i 116.6 | ) | i 98.7 | |||||
Accounts
Payable | ( i 32.4 | ) | ( i 45.0 | ) | ||||
Accrued
Taxes, Net | ( i 359.9 | ) | ( i 247.5 | ) | ||||
Other
Current Assets | i 60.2 | i 11.7 | ||||||
Other
Current Liabilities | ( i 321.9 | ) | i 101.1 | |||||
Net
Cash Flows from Operating Activities | i 3,349.9 | i 3,932.6 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 4,336.0 | ) | ( i 4,688.4 | ) | ||||
Purchases
of Investment Securities | ( i 951.5 | ) | ( i 1,591.2 | ) | ||||
Sales
of Investment Securities | i 874.2 | i 1,550.9 | ||||||
Acquisitions
of Nuclear Fuel | ( i 91.9 | ) | ( i 26.1 | ) | ||||
Acquisition
of Sempra Renewables LLC and Santa Rita East, net of cash and restricted cash acquired | ( i 921.3 | ) | i — | |||||
Other
Investing Activities | i 68.9 | i 66.1 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 5,357.6 | ) | ( i 4,688.7 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Issuance of Common Stock | i 44.7 | i 62.5 | ||||||
Issuance
of Long-term Debt | i 3,492.4 | i 3,572.0 | ||||||
Commercial
Paper and Credit Facility Borrowings | i — | i 205.6 | ||||||
Change
in Short-term Debt, Net | i 600.0 | i 604.0 | ||||||
Retirement
of Long-term Debt | ( i 1,023.5 | ) | ( i 1,959.5 | ) | ||||
Make
Whole Premium on Extinguishment of Long-term Debt | ( i 5.0 | ) | ( i 10.3 | ) | ||||
Commercial
Paper and Credit Facility Repayments | i — | ( i 205.6 | ) | |||||
Principal
Payments for Finance Lease Obligations | ( i 44.5 | ) | ( i 49.4 | ) | ||||
Dividends
Paid on Common Stock | ( i 1,002.0 | ) | ( i 922.5 | ) | ||||
Other
Financing Activities | ( i 8.7 | ) | ( i 15.8 | ) | ||||
Net
Cash Flows from Financing Activities | i 2,053.4 | i 1,281.0 | ||||||
Net
Increase in Cash, Cash Equivalents and Restricted Cash | i 45.7 | i 524.9 | ||||||
Cash,
Cash Equivalents and Restricted Cash at Beginning of Period | i 444.1 | i 412.6 | ||||||
Cash,
Cash Equivalents and Restricted Cash at End of Period | $ | i 489.8 | $ | i 937.5 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 689.7 | $ | i 631.3 | ||||
Net
Cash Paid (Received) for Income Taxes | i 22.8 | ( i 27.9 | ) | |||||
Noncash
Acquisitions Under Finance Leases | i 66.7 | i 43.5 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 1,018.9 | i 882.3 | ||||||
Acquisition
of Nuclear Fuel Included in Current Liabilities as of September 30, | i — | i 12.1 | ||||||
Noncash
Contribution of Assets by Noncontrolling Interest | i — | i 84.0 | ||||||
Expected
Reimbursement for Spent Nuclear Fuel Dry Cask Storage | i — | i 2.1 | ||||||
Noncontrolling
Interest assumed with Sempra Renewable LLC and Santa Rita East Acquisition | i 253.4 | i — | ||||||
Liabilities
assumed with Sempra Renewable LLC and Santa Rita East Acquisition | i 32.4 | i — | ||||||
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 4,148 | 3,893 | 9,580 | 9,679 | |||||||
Commercial | 3,152 | 2,987 | 7,997 | 7,916 | |||||||
Industrial | 2,168 | 2,216 | 6,556 | 6,705 | |||||||
Miscellaneous | 197 | 182 | 512 | 490 | |||||||
Total
Retail (a) | 9,665 | 9,278 | 24,645 | 24,790 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Actual – Heating (a) | — | — | 180 | 234 | |||||||
Normal – Heating (b) | — | — | 190 | 194 | |||||||
Actual
– Cooling (c) | 1,587 | 1,424 | 2,679 | 2,612 | |||||||
Normal – Cooling (b) | 1,368 | 1,367 | 2,425 | 2,413 | |||||||
Reconciliation
of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Net Income | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 57.8 | ||
Changes
in Gross Margin: | ||||
Retail Margins | 12.6 | |||
Margins from Off-system Sales | 16.7 | |||
Transmission Revenues | 23.9 | |||
Other
Revenues | 4.7 | |||
Total Change in Gross Margin | 57.9 | |||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | 6.7 | |||
Depreciation and Amortization | (36.9 | ) | ||
Taxes Other Than Income Taxes | (3.5 | ) | ||
Interest Income | (0.1 | ) | ||
Allowance
for Equity Funds Used During Construction | (0.7 | ) | ||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.3 | ) | ||
Interest Expense | 1.5 | |||
Total Change
in Expenses and Other | (33.3 | ) | ||
Income Tax Expense (Benefit) | (5.4 | ) | ||
Third
Quarter of 2019 | $ | 77.0 | ||
• | Retail Margins increased $13 million
primarily due to the following: |
• | An $8 million increase in weather-related usage primarily due to an 11% increase in cooling degree days. |
• | A $4 million increase in weather-normalized margins primarily in the residential class. |
• | Margins from Off-system Sales increased
$17 million due to higher affiliated PPA revenues. This increase was partially offset below in Other Operation and Maintenance expenses and in Depreciation and Amortization expenses. |
• | Transmission Revenues increased $24 million primarily due to the recovery of increased transmission investment in ERCOT. |
• | Other Revenues increased $5 million
primarily due to securitization revenue related to Transition Funding. This decrease was offset below in Depreciation and Amortization expenses and in Interest Expense. |
• | Other Operation and Maintenance expenses decreased $7 million primarily due to the following: |
• | A
$4 million decrease in expenses associated with Oklaunion Power Station. This decrease was partially offset in Margins from Off-system Sales above and in Depreciation and Amortization expenses below. |
• | A $3 million decrease in ERCOT transmission expenses. This decrease was partially offset in Retail Margins above. |
• | Depreciation and Amortization
expenses increased $37 million primarily due to the following: |
• | A $16 million increase in depreciation expense due to a change in the useful life of the Oklaunion Power Station. This increase was partially offset in Margins from Off-system Sales above and in Other Operation and Maintenance expenses above. |
• | An $11 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution
assets primarily related to advanced metering systems. |
• | A $7 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below. |
• | Taxes Other Than Income Taxes increased $4 million primarily due to increased property taxes as a result of additional investments in transmission and distribution assets
and higher tax rates. |
• | Interest Expense decreased $2 million primarily due to the following: |
• | A $5 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. |
• | A
$3 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset above in Other Revenues and Depreciation and Amortization expenses. |
• | A $2 million increase due to higher long-term debt balances. |
• | Income Tax Expense (Benefit) increased $5 million primarily due to an
increase in pretax book income. |
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September
30, 2019 | ||||
Net Income | ||||
(in millions) | ||||
Nine Months Ended September 30, 2018 | $ | 151.1 | ||
Changes
in Gross Margin: | ||||
Retail Margins | — | |||
Margins from Off-system Sales | 59.3 | |||
Transmission Revenues | 62.3 | |||
Other
Revenues | 1.9 | |||
Total Change in Gross Margin | 123.5 | |||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | (49.9 | ) | ||
Depreciation and Amortization | (99.9 | ) | ||
Taxes Other Than Income Taxes | (8.0 | ) | ||
Interest Income | 1.5 | |||
Allowance
for Equity Funds Used During Construction | (6.9 | ) | ||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.8 | ) | ||
Interest Expense | 16.2 | |||
Total Change
in Expenses and Other | (147.8 | ) | ||
Income Tax Expense (Benefit) | 65.2 | |||
Nine
Months Ended September 30, 2019 | $ | 192.0 | ||
• | Retail Margins
were unchanged primarily due to the following: |
• | A $7 million decrease in revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset in Other Operation and Maintenance expenses below. |
• | A $5 million decrease in weather-related usage primarily due to a 23% decrease in heating degree days, partially offset by a 3% increase in cooling degree days. |
• | A
$12 million increase in weather-normalized margins primarily in the residential and commercial classes. |
• | Margins from Off-system Sales increased $59 million due to higher affiliated PPA revenues. This increase was partially offset below in Other Operation and Maintenance expenses and in Depreciation and Amortization expenses. |
• | Transmission Revenues increased $62 million
primarily due to recovery of increased transmission investment in ERCOT. |
• | Other Operation and Maintenance expenses increased $50 million primarily due to the following: |
• | A
$64 million increase in expense due to the partial amortization of the Texas Storm Cost Securitization regulatory asset as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. This increase was offset in Income Tax Expense (Benefit) below. |
• | A $7 million decrease in distribution expenses. |
• | A $7 million decrease in ERCOT transmission expenses. This decrease was partially offset in Retail
Margins above. |
• | A $5 million decrease in expenses associated with Oklaunion Power Station. This decrease was partially offset in Margins from Off-system Sales above and in Depreciation and Amortization expenses below. |
• | Depreciation and Amortization expenses increased
$100 million primarily due to the following: |
• | A $49 million increase in depreciation expense due to a change in the useful life of the Oklaunion Power Station. This increase was offset above in Margins from Off-system Sales and in Other Operation and Maintenance expenses. |
• | A $34 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets primarily related to advanced metering systems. |
• | A
$9 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below. |
• | A $6 million increase in ARO associated with Oklaunion Power Station. |
• | Taxes Other Than Income Taxes increased $8 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution
assets and higher tax rates. |
• | Allowance for Equity Funds Used During Construction decreased $7 million primarily due to a decrease in the Equity component as a result of higher short-term debt balances, partially offset by increased transmission projects. |
• | Interest Expense decreased $16 million primarily due to: |
• | A
$21 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. |
• | An $8 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset above in Other Revenues and Depreciation and Amortization expenses. |
• | An $11 million increase due to higher long-term
debt balances. |
• | Income Tax Expense (Benefit) decreased $65 million primarily due to the amortization of Excess ADIT not subject to normalization requirements as approved in the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. This decrease was partially offset above in Other Operation and Maintenance expenses. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Electric
Transmission and Distribution | $ | i 445.4 | $ | i 404.5 | $ | i 1,190.3 | $ | i 1,127.0 | ||||||||
Sales
to AEP Affiliates | i 42.7 | i 27.5 | i 125.1 | i 63.3 | ||||||||||||
Other
Revenues | i 1.2 | i 1.4 | i 2.6 | i 3.0 | ||||||||||||
TOTAL
REVENUES | i 489.3 | i 433.4 | i 1,318.0 | i 1,193.3 | ||||||||||||
EXPENSES | ||||||||||||||||
Fuel
and Other Consumables Used for Electric Generation | i 11.2 | i 13.2 | i 29.1 | i 27.9 | ||||||||||||
Other
Operation | i 128.2 | i 133.4 | i 349.2 | i 368.4 | ||||||||||||
Maintenance | i 21.7 | i 23.2 | i 136.9 | i 67.8 | ||||||||||||
Depreciation
and Amortization | i 170.2 | i 133.3 | i 464.8 | i 364.9 | ||||||||||||
Taxes
Other Than Income Taxes | i 39.8 | i 36.3 | i 110.3 | i 102.3 | ||||||||||||
TOTAL
EXPENSES | i 371.1 | i 339.4 | i 1,090.3 | i 931.3 | ||||||||||||
OPERATING
INCOME | i 118.2 | i 94.0 | i 227.7 | i 262.0 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Interest Income | i 0.4 | i 0.5 | i 1.5 | i — | ||||||||||||
Allowance
for Equity Funds Used During Construction | i 5.1 | i 5.8 | i 8.3 | i 15.2 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 2.8 | i 3.1 | i 8.4 | i 9.2 | ||||||||||||
Interest
Expense | ( i 35.8 | ) | ( i 37.3 | ) | ( i 92.7 | ) | ( i 108.9 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE (BENEFIT) | i 90.7 | i 66.1 | i 153.2 | i 177.5 | ||||||||||||
Income
Tax Expense (Benefit) | i 13.7 | i 8.3 | ( i 38.8 | ) | i 26.4 | |||||||||||
NET
INCOME | $ | i 77.0 | $ | i 57.8 | $ | i 192.0 | $ | i 151.1 | ||||||||
The
common stock of AEP Texas is wholly-owned by Parent. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net
Income | $ | i 77.0 | $ | i 57.8 | $ | i 192.0 | $ | i 151.1 | ||||||||
OTHER
COMPREHENSIVE INCOME, NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of Tax of $0.1 and $0.1 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0.2 and $0.2 for the Nine Months Ended September
30, 2019 and 2018, Respectively | i 0.3 | i 0.3 | i 0.8 | i 0.8 | ||||||||||||
Amortization
of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0 and $0 for the Nine Months Ended September 30, 2019 and 2018, Respectively | i — | i — | i 0.1 | i 0.1 | ||||||||||||
TOTAL
OTHER COMPREHENSIVE INCOME | i 0.3 | i 0.3 | i 0.9 | i 0.9 | ||||||||||||
TOTAL
COMPREHENSIVE INCOME | $ | i 77.3 | $ | i 58.1 | $ | i 192.9 | $ | i 152.0 | ||||||||
Paid-in Capital | Retained
Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017 | $ | i 1,057.9 | $ | i 1,124.6 | $ | ( i 12.6 | ) | $ | i 2,169.9 | |||||||
Capital
Contribution from Parent | i 100.0 | i 100.0 | ||||||||||||||
ASU
2018-02 Adoption | i 1.8 | ( i 2.7 | ) | ( i 0.9 | ) | |||||||||||
Net
Income | i 46.8 | i 46.8 | ||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018 | i 1,157.9 | i 1,173.2 | ( i 15.0 | ) | i 2,316.1 | |||||||||||
Net
Income | i 46.5 | i 46.5 | ||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018 | i 1,157.9 | i 1,219.7 | ( i 14.7 | ) | i 2,362.9 | |||||||||||
Net
Income | i 57.8 | i 57.8 | ||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018 | $ | i 1,157.9 | $ | i 1,277.5 | $ | ( i 14.4 | ) | $ | i 2,421.0 | |||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018 | $ | i 1,257.9 | $ | i 1,337.7 | $ | ( i 15.1 | ) | $ | i 2,580.5 | |||||||
Capital
Contribution from Parent | i 200.0 | i 200.0 | ||||||||||||||
Net
Income | i 34.4 | i 34.4 | ||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019 | i 1,457.9 | i 1,372.1 | ( i 14.8 | ) | i 2,815.2 | |||||||||||
Net
Income | i 80.6 | i 80.6 | ||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019 | i 1,457.9 | i 1,452.7 | ( i 14.5 | ) | i 2,896.1 | |||||||||||
Net
Income | i 77.0 | i 77.0 | ||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019 | $ | i 1,457.9 | $ | i 1,529.7 | $ | ( i 14.2 | ) | $ | i 2,973.4 | |||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents | $ | i 0.1 | $ | i 3.1 | ||||
Restricted
Cash for Securitized Transition Funding | i 114.3 | i 156.7 | ||||||
Advances
to Affiliates | i 7.7 | i 8.0 | ||||||
Accounts
Receivable: | ||||||||
Customers | i 148.0 | i 110.9 | ||||||
Affiliated
Companies | i 17.6 | i 15.0 | ||||||
Accrued
Unbilled Revenues | i 82.7 | i 70.4 | ||||||
Miscellaneous | i 0.2 | i 1.9 | ||||||
Allowance
for Uncollectible Accounts | ( i 1.6 | ) | ( i 1.3 | ) | ||||
Total
Accounts Receivable | i 246.9 | i 196.9 | ||||||
Fuel | i 7.1 | i 8.8 | ||||||
Materials
and Supplies | i 54.6 | i 52.8 | ||||||
Accrued
Tax Benefits | i 111.3 | i 44.9 | ||||||
Prepayments
and Other Current Assets | i 6.4 | i 5.3 | ||||||
TOTAL
CURRENT ASSETS | i 548.4 | i 476.5 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Generation | i 351.8 | i 352.1 | ||||||
Transmission | i 4,102.8 | i 3,683.6 | ||||||
Distribution | i 4,122.2 | i 4,043.2 | ||||||
Other
Property, Plant and Equipment | i 775.3 | i 727.9 | ||||||
Construction
Work in Progress | i 978.4 | i 836.2 | ||||||
Total
Property, Plant and Equipment | i 10,330.5 | i 9,643.0 | ||||||
Accumulated
Depreciation and Amortization | i 1,742.7 | i 1,651.2 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 8,587.8 | i 7,991.8 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 259.6 | i 430.0 | ||||||
Securitized
Assets (September 30, 2019 and December 31, 2018 Amounts Include $693 and $636.8, Respectively, Related to Transition Funding and Restoration Funding) | i 698.1 | i 649.1 | ||||||
Deferred
Charges and Other Noncurrent Assets | i 161.9 | i 56.3 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 1,119.6 | i 1,135.4 | ||||||
TOTAL
ASSETS | $ | i 10,255.8 | $ | i 9,603.7 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
LIABILITIES | ||||||||
Advances from Affiliates | $ | i 74.8 | $ | i 216.0 | ||||
Accounts
Payable: | ||||||||
General | i 224.1 | i 276.5 | ||||||
Affiliated
Companies | i 41.0 | i 30.3 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated (September 30, 2019 and December 31, 2018 Amounts Include $280.8 and $251.1, Respectively, Related to Transition Funding and Restoration Funding) | i 391.4 | i 501.1 | ||||||
Risk
Management Liabilities | i 0.3 | i 0.2 | ||||||
Accrued
Taxes | i 108.5 | i 75.5 | ||||||
Accrued
Interest (September 30, 2019 and December 31, 2018 Amounts Include $6.1 and $11.3, Respectively, Related to Transition Funding and Restoration Funding) | i 50.6 | i 37.3 | ||||||
Oklaunion
Purchase Power Agreement | i 28.7 | i 24.3 | ||||||
Obligations
Under Operating Leases | i 11.7 | i — | ||||||
Other
Current Liabilities | i 85.1 | i 98.3 | ||||||
TOTAL
CURRENT LIABILITIES | i 1,016.2 | i 1,259.5 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated (September 30, 2019 and December 31, 2018 Amounts Include $530.5 and $540.1, Respectively, Related to Transition Funding and Restoration Funding) | i 3,755.1 | i 3,380.2 | ||||||
Long-term
Risk Management Liabilities | i 0.1 | i — | ||||||
Deferred
Income Taxes | i 977.7 | i 913.1 | ||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 1,325.1 | i 1,344.3 | ||||||
Oklaunion
Purchase Power Agreement | i — | i 22.1 | ||||||
Obligations
Under Operating Leases | i 71.1 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 137.1 | i 104.0 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 6,266.2 | i 5,763.7 | ||||||
TOTAL
LIABILITIES | i 7,282.4 | i 7,023.2 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
COMMON
SHAREHOLDER’S EQUITY | ||||||||
Paid-in Capital | i 1,457.9 | i 1,257.9 | ||||||
Retained
Earnings | i 1,529.7 | i 1,337.7 | ||||||
Accumulated
Other Comprehensive Income (Loss) | ( i 14.2 | ) | ( i 15.1 | ) | ||||
TOTAL
COMMON SHAREHOLDER’S EQUITY | i 2,973.4 | i 2,580.5 | ||||||
TOTAL
LIABILITIES AND COMMON SHAREHOLDER’S EQUITY | $ | i 10,255.8 | $ | i 9,603.7 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 192.0 | $ | i 151.1 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 464.8 | i 364.9 | ||||||
Deferred
Income Taxes | ( i 0.6 | ) | ( i 21.2 | ) | ||||
Allowance
for Equity Funds Used During Construction | ( i 8.3 | ) | ( i 15.2 | ) | ||||
Mark-to-Market
of Risk Management Contracts | i 0.2 | i — | ||||||
Change
in Other Noncurrent Assets | i 0.5 | ( i 55.7 | ) | |||||
Change
in Other Noncurrent Liabilities | i 6.5 | i 67.1 | ||||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | ( i 50.0 | ) | ( i 26.5 | ) | ||||
Fuel,
Materials and Supplies | ( i 0.1 | ) | ( i 2.4 | ) | ||||
Accounts
Payable | i 17.8 | ( i 19.1 | ) | |||||
Accrued
Taxes, Net | ( i 33.4 | ) | i 40.0 | |||||
Other
Current Assets | ( i 0.7 | ) | ( i 6.3 | ) | ||||
Other
Current Liabilities | ( i 12.9 | ) | i 14.1 | |||||
Net
Cash Flows from Operating Activities | i 575.8 | i 490.8 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 954.5 | ) | ( i 1,096.1 | ) | ||||
Change
in Advances to Affiliates, Net | i 0.3 | i 103.9 | ||||||
Other
Investing Activities | i 18.4 | i 31.1 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 935.8 | ) | ( i 961.1 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Capital Contribution from Parent | i 200.0 | i 100.0 | ||||||
Issuance
of Long-term Debt – Nonaffiliated | i 627.5 | i 494.0 | ||||||
Change
in Advances from Affiliates, Net | ( i 141.2 | ) | i 77.8 | |||||
Retirement
of Long-term Debt – Nonaffiliated | ( i 366.8 | ) | ( i 231.7 | ) | ||||
Principal
Payments for Finance Lease Obligations | ( i 3.8 | ) | ( i 3.6 | ) | ||||
Other
Financing Activities | ( i 1.1 | ) | i 0.9 | |||||
Net
Cash Flows from Financing Activities | i 314.6 | i 437.4 | ||||||
Net
Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Transition Funding | ( i 45.4 | ) | ( i 32.9 | ) | ||||
Cash,
Cash Equivalents and Restricted Cash for Securitized Transition Funding at Beginning of Period | i 159.8 | i 157.2 | ||||||
Cash,
Cash Equivalents and Restricted Cash for Securitized Transition Funding at End of Period | $ | i 114.4 | $ | i 124.3 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 95.1 | $ | i 92.2 | ||||
Net
Cash Paid (Received) for Income Taxes | i 28.7 | ( i 14.2 | ) | |||||
Noncash
Acquisitions Under Finance Leases | i 6.9 | i 8.9 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 183.6 | i 176.4 | ||||||
As
of September 30, | ||||||||
2019 | 2018 | |||||||
(in millions) | ||||||||
Plant In Service | $ | 7,409.0 | $ | 5,988.7 | ||||
Construction
Work in Progress | 1,858.4 | 1,772.9 | ||||||
Accumulated Depreciation and Amortization | 368.8 | 234.6 | ||||||
Total
Transmission Property, Net | $ | 8,898.6 | $ | 7,527.0 | ||||
Reconciliation
of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Net Income | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 78.1 | ||
Changes
in Transmission Revenues: | ||||
Transmission Revenues | 65.3 | |||
Total Change in Transmission Revenues | 65.3 | |||
Changes
in Expenses and Other: | ||||
Other Operation and Maintenance | (1.9 | ) | ||
Depreciation and Amortization | (10.4 | ) | ||
Taxes Other Than Income Taxes | (7.7 | ) | ||
Interest
Income | 0.3 | |||
Allowance for Equity Funds Used During Construction | 3.0 | |||
Interest Expense | (6.6 | ) | ||
Total Change in Expenses and Other | (23.3 | ) | ||
Income
Tax Expense | (12.5 | ) | ||
Third Quarter of 2019 | $ | 107.6 | ||
• | Transmission Revenues increased $65 million primarily due to continued investment in transmission assets. |
• | Depreciation
and Amortization expenses increased $10 million primarily due to a higher depreciable base. |
• | Taxes Other Than Income Taxes increased $8 million primarily due to higher property taxes as a result of increased transmission investment. |
• | Allowance for Equity Funds Used During Construction
increased $3 million primarily due to higher CWIP balances. |
• | Interest Expense increased $7 million primarily due to higher long-term debt balances. |
• | Income Tax Expense increased $13 million
primarily due to higher pretax book income. |
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September
30, 2019 | ||||
Net Income | ||||
(in millions) | ||||
Nine Months Ended September 30, 2018 | $ | 244.2 | ||
Changes
in Transmission Revenues: | ||||
Transmission Revenues | 183.9 | |||
Total Change in Transmission Revenues | 183.9 | |||
Changes
in Expenses and Other: | ||||
Other Operation and Maintenance | (3.4 | ) | ||
Depreciation and Amortization | (30.9 | ) | ||
Taxes Other Than Income Taxes | (23.3 | ) | ||
Interest
Income | 0.8 | |||
Allowance for Equity Funds Used During Construction | 12.4 | |||
Interest Expense | (8.8 | ) | ||
Total Change in Expenses and Other | (53.2 | ) | ||
Income
Tax Expense | (27.0 | ) | ||
Nine Months Ended September 30, 2019 | $ | 347.9 | ||
• | Transmission Revenues increased $184 million primarily due to continued investment in transmission assets. |
• | Depreciation
and Amortization expenses increased $31 million primarily due to a higher depreciable base. |
• | Taxes Other Than Income Taxes increased $23 million primarily due to higher property taxes as a result of increased transmission investment. |
• | Allowance for Equity Funds Used During Construction
increased $12 million primarily due to the following: |
• | A $13 million increase primarily due to higher CWIP balances. |
• | A $12 million increase due to the FERC’s approval of a settlement agreement. |
• | A
$13 million decrease due to recent FERC audit findings. |
• | Interest Expense increased $9 million primarily due to higher long-term debt balances. |
• | Income Tax Expense increased $27 million primarily due to higher pretax book income. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Transmission
Revenues | $ | i 54.0 | $ | i 46.0 | $ | i 162.1 | $ | i 132.3 | ||||||||
Sales
to AEP Affiliates | i 205.7 | i 148.4 | i 608.0 | i 453.8 | ||||||||||||
Other
Revenues | i — | i — | i — | i 0.1 | ||||||||||||
TOTAL
REVENUES | i 259.7 | i 194.4 | i 770.1 | i 586.2 | ||||||||||||
EXPENSES | ||||||||||||||||
Other
Operation | i 26.0 | i 24.5 | i 61.7 | i 59.6 | ||||||||||||
Maintenance | i 3.2 | i 2.8 | i 8.9 | i 7.6 | ||||||||||||
Depreciation
and Amortization | i 45.3 | i 34.9 | i 128.4 | i 97.5 | ||||||||||||
Taxes
Other Than Income Taxes | i 42.9 | i 35.2 | i 126.2 | i 102.9 | ||||||||||||
TOTAL
EXPENSES | i 117.4 | i 97.4 | i 325.2 | i 267.6 | ||||||||||||
OPERATING
INCOME | i 142.3 | i 97.0 | i 444.9 | i 318.6 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Interest Income | i 0.8 | i 0.5 | i 2.1 | i 1.3 | ||||||||||||
Allowance
for Equity Funds Used During Construction | i 21.0 | i 18.0 | i 61.1 | i 48.7 | ||||||||||||
Interest
Expense | ( i 26.4 | ) | ( i 19.8 | ) | ( i 69.5 | ) | ( i 60.7 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE | i 137.7 | i 95.7 | i 438.6 | i 307.9 | ||||||||||||
Income
Tax Expense | i 30.1 | i 17.6 | i 90.7 | i 63.7 | ||||||||||||
NET
INCOME | $ | i 107.6 | $ | i 78.1 | $ | i 347.9 | $ | i 244.2 | ||||||||
Paid-in Capital | Retained Earnings | Total | ||||||||||
TOTAL
MEMBER'S EQUITY – DECEMBER 31, 2017 | $ | i 1,816.6 | $ | i 773.3 | $ | i 2,589.9 | ||||||
Capital
Contribution from Member | i 65.0 | i 65.0 | ||||||||||
Net
Income | i 84.1 | i 84.1 | ||||||||||
TOTAL
MEMBER'S EQUITY – MARCH 31, 2018 | i 1,881.6 | i 857.4 | i 2,739.0 | |||||||||
Capital
Contributions from Member | i 312.0 | i 312.0 | ||||||||||
Net
Income | i 82.0 | i 82.0 | ||||||||||
TOTAL
MEMBER'S EQUITY – JUNE 30, 2018 | i 2,193.6 | i 939.4 | i 3,133.0 | |||||||||
Capital
Contribution from Member | i 205.0 | i 205.0 | ||||||||||
Net
Income | i 78.1 | i 78.1 | ||||||||||
TOTAL
MEMBER'S EQUITY – SEPTEMBER 30, 2018 | $ | i 2,398.6 | $ | i 1,017.5 | $ | i 3,416.1 | ||||||
TOTAL
MEMBER'S EQUITY – DECEMBER 31, 2018 | $ | i 2,480.6 | $ | i 1,089.2 | $ | i 3,569.8 | ||||||
Net
Income | i 104.3 | i 104.3 | ||||||||||
TOTAL
MEMBER'S EQUITY – MARCH 31, 2019 | i 2,480.6 | i 1,193.5 | i 3,674.1 | |||||||||
Net
Income | i 136.0 | i 136.0 | ||||||||||
TOTAL
MEMBER'S EQUITY – JUNE 30, 2019 | i 2,480.6 | i 1,329.5 | i 3,810.1 | |||||||||
Net
Income | i 107.6 | i 107.6 | ||||||||||
TOTAL
MEMBER'S EQUITY – SEPTEMBER 30, 2019 | $ | i 2,480.6 | $ | i 1,437.1 | $ | i 3,917.7 | ||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Advances to Affiliates | $ | i 275.2 | $ | i 96.9 | ||||
Accounts
Receivable: | ||||||||
Customers | i 23.5 | i 11.8 | ||||||
Affiliated
Companies | i 61.3 | i 61.0 | ||||||
Total
Accounts Receivable | i 84.8 | i 72.8 | ||||||
Materials
and Supplies | i 15.1 | i 19.0 | ||||||
Accrued
Tax Benefits | i 9.7 | i 33.4 | ||||||
Prepayments
and Other Current Assets | i 4.4 | i 3.4 | ||||||
TOTAL
CURRENT ASSETS | i 389.2 | i 225.5 | ||||||
TRANSMISSION
PROPERTY | ||||||||
Transmission Property | i 7,181.8 | i 6,515.8 | ||||||
Other
Property, Plant and Equipment | i 227.2 | i 174.0 | ||||||
Construction
Work in Progress | i 1,858.4 | i 1,578.3 | ||||||
Total
Transmission Property | i 9,267.4 | i 8,268.1 | ||||||
Accumulated
Depreciation and Amortization | i 368.8 | i 271.9 | ||||||
TOTAL
TRANSMISSION PROPERTY – NET | i 8,898.6 | i 7,996.2 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Accounts Receivable – Affiliated Companies | i 4.8 | i — | ||||||
Regulatory
Assets | i 7.3 | i 12.9 | ||||||
Deferred
Property Taxes | i 47.2 | i 157.9 | ||||||
Deferred
Charges and Other Noncurrent Assets | i 5.6 | i 1.6 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 64.9 | i 172.4 | ||||||
TOTAL
ASSETS | $ | i 9,352.7 | $ | i 8,394.1 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
LIABILITIES | ||||||||
Advances from Affiliates | $ | i 9.1 | $ | i 45.4 | ||||
Accounts
Payable: | ||||||||
General | i 319.1 | i 347.2 | ||||||
Affiliated
Companies | i 57.1 | i 56.0 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated | i 85.0 | i 85.0 | ||||||
Accrued
Taxes | i 172.4 | i 288.9 | ||||||
Accrued
Interest | i 39.7 | i 15.9 | ||||||
Obligations
Under Operating Leases | i 2.3 | i — | ||||||
Other
Current Liabilities | i 25.5 | i 3.8 | ||||||
TOTAL
CURRENT LIABILITIES | i 710.2 | i 842.2 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated | i 3,426.9 | i 2,738.0 | ||||||
Deferred
Income Taxes | i 751.4 | i 704.4 | ||||||
Regulatory
Liabilities | i 541.2 | i 521.3 | ||||||
Obligations
Under Operating Leases | i 2.2 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 3.1 | i 18.4 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 4,724.8 | i 3,982.1 | ||||||
TOTAL
LIABILITIES | i 5,435.0 | i 4,824.3 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
MEMBER’S
EQUITY | ||||||||
Paid-in Capital | i 2,480.6 | i 2,480.6 | ||||||
Retained
Earnings | i 1,437.1 | i 1,089.2 | ||||||
TOTAL
MEMBER’S EQUITY | i 3,917.7 | i 3,569.8 | ||||||
TOTAL
LIABILITIES AND MEMBER’S EQUITY | $ | i 9,352.7 | $ | i 8,394.1 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 347.9 | $ | i 244.2 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 128.4 | i 97.5 | ||||||
Deferred
Income Taxes | i 36.7 | i 76.3 | ||||||
Allowance
for Equity Funds Used During Construction | ( i 61.1 | ) | ( i 48.7 | ) | ||||
Property
Taxes | i 110.7 | i 86.9 | ||||||
Long-term
Accounts Receivable – Affiliated | ( i 4.8 | ) | ( i 3.1 | ) | ||||
Change
in Other Noncurrent Assets | i 5.8 | i 12.7 | ||||||
Change
in Other Noncurrent Liabilities | ( i 3.8 | ) | i 18.0 | |||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | ( i 5.1 | ) | i 23.5 | |||||
Materials
and Supplies | i 3.9 | ( i 2.8 | ) | |||||
Accounts
Payable | i 4.1 | i 3.3 | ||||||
Accrued
Taxes, Net | ( i 92.8 | ) | ( i 73.2 | ) | ||||
Accrued
Interest | i 23.8 | i 20.9 | ||||||
Other
Current Assets | ( i 1.0 | ) | ( i 0.5 | ) | ||||
Other
Current Liabilities | ( i 8.5 | ) | ( i 28.0 | ) | ||||
Net
Cash Flows from Operating Activities | i 484.2 | i 427.0 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 959.9 | ) | ( i 1,171.8 | ) | ||||
Change
in Advances to Affiliates, Net | ( i 178.3 | ) | ( i 131.7 | ) | ||||
Acquisitions
of Assets | ( i 7.6 | ) | ( i 13.2 | ) | ||||
Other
Investing Activities | i 12.0 | i 1.2 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 1,133.8 | ) | ( i 1,315.5 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Capital Contributions from Member | i — | i 582.0 | ||||||
Issuance
of Long-term Debt – Nonaffiliated | i 685.9 | i 321.1 | ||||||
Change
in Advances from Affiliates, Net | ( i 36.3 | ) | ( i 14.6 | ) | ||||
Net
Cash Flows from Financing Activities | i 649.6 | i 888.5 | ||||||
Net
Change in Cash and Cash Equivalents | i — | i — | ||||||
Cash
and Cash Equivalents at Beginning of Period | i — | i — | ||||||
Cash
and Cash Equivalents at End of Period | $ | i — | $ | i — | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 43.0 | $ | i 38.4 | ||||
Net
Cash Paid (Received) for Income Taxes | i 29.8 | ( i 32.1 | ) | |||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 315.1 | i 237.0 | ||||||
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 2,728 | 2,662 | 8,401 | 8,895 | |||||||
Commercial | 1,721 | 1,715 | 4,812 | 4,980 | |||||||
Industrial | 2,487 | 2,433 | 7,180 | 7,181 | |||||||
Miscellaneous | 216 | 215 | 640 | 644 | |||||||
Total
Retail (a) | 7,152 | 7,025 | 21,033 | 21,700 | |||||||
Wholesale | 938 | 1,143 | 2,667 | 2,252 | |||||||
Total
KWhs | 8,090 | 8,168 | 23,700 | 23,952 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Actual – Heating (a) | — | — | 1,295 | 1,518 | |||||||
Normal – Heating (b) | 3 | 2 | 1,407 | 1,410 | |||||||
Actual
– Cooling (c) | 1,071 | 950 | 1,530 | 1,495 | |||||||
Normal – Cooling (b) | 815 | 814 | 1,194 | 1,184 | |||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Cooling degree days are calculated on a 65 degree temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Net Income | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 87.1 | ||
Changes
in Gross Margin: | ||||
Retail Margins | 68.2 | |||
Transmission Revenues | 12.8 | |||
Other Revenues | 0.7 | |||
Total
Change in Gross Margin | 81.7 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 27.2 | |||
Depreciation
and Amortization | (13.0 | ) | ||
Taxes Other Than Income Taxes | (3.1 | ) | ||
Interest Income | (0.1 | ) | ||
Carrying Costs Income | (0.2 | ) | ||
Allowance
for Equity Funds Used During Construction | 0.7 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.2 | ) | ||
Interest Expense | (0.8 | ) | ||
Total Change
in Expenses and Other | 10.5 | |||
Income Tax Expense (Benefit) | (75.0 | ) | ||
Third
Quarter of 2019 | $ | 104.3 | ||
• | Retail Margins
increased $68 million primarily due to the following: |
• | A $78 million increase due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below. |
• | A $15 million increase in deferred fuel related to recoverable PJM expenses that were offset below. |
• | An
$11 million increase in weather-related usage primarily driven by a 13% increase in cooling degree days. |
• | A $10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense in the prior year. |
• | An $8 million increase due to revenue primarily from rate riders in West Virginia. This increase was offset in other expense items below. |
• | A
$6 million increase due to a base rate increase in West Virginia implemented in March 2019. |
• | A $56 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below. |
• | A $3 million decrease in weather-normalized margins occurring across all retail classes. |
• | Transmission
Revenues increased $13 million primarily due to 2018 provisions for refunds. |
• | Other Operation and Maintenance expenses decreased $27 million primarily due to the following: |
• | A
$39 million decrease due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement. |
• | A $4 million decrease in maintenance expense at various generation plants. |
• | An $11 million increase in recoverable PJM transmission expenses which were partially offset within Gross Margins above. |
• | A
$9 million increase in PJM expenses related to the annual formula rate true-up. |
• | Depreciation and Amortization expenses increased $13 million primarily due to a higher depreciable base and an increase in West Virginia depreciation rates beginning in March 2019. |
• | Taxes Other Than Income Taxes increased $3 million primarily due to an increase in West Virginia business and occupational taxes. |
• | Income
Tax Expense (Benefit) increased $75 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 West Virginia Tax Reform settlement. This increase was partially offset in Gross Margin and Other Operation and Maintenance expenses above. |
Reconciliation
of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Net Income | ||||
(in millions) | ||||
Nine Months Ended September 30, 2018 | $ | 290.0 | ||
Changes
in Gross Margin: | ||||
Retail Margins | (11.0 | ) | ||
Margins from Off-system Sales | 2.0 | |||
Transmission Revenues | 25.9 | |||
Other
Revenues | 1.1 | |||
Total Change in Gross Margin | 18.0 | |||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | 14.4 | |||
Depreciation and Amortization | (28.8 | ) | ||
Taxes Other Than Income Taxes | (7.4 | ) | ||
Interest Income | 0.8 | |||
Carrying
Costs Income | (1.2 | ) | ||
Allowance for Equity Funds Used During Construction | 2.9 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.6 | ) | ||
Interest
Expense | (6.5 | ) | ||
Total Change in Expenses and Other | (26.4 | ) | ||
Income Tax Expense (Benefit) | 11.9 | |||
Nine
Months Ended September 30, 2019 | $ | 293.5 | ||
• | Retail
Margins decreased $11 million primarily due to the following: |
• | A $91 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below. |
• | A $23 million decrease in weather-normalized margins occurring across all retail classes. |
• | A
$22 million decrease in weather-related usage primarily driven by a 15% decrease in heating degree days partially offset by a 2% increase in cooling degree days. |
• | A $78 million increase due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below. |
• | A $14 million increase primarily due to revenue
from rate riders in West Virginia. This increase was offset in other expense items below. |
• | A $12 million increase due to base rate increases in West Virginia implemented in March 2019. |
• | A $12 million increase in deferred fuel related to recoverable PJM expenses that were offset below. |
• | A
$10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense at APCo in the prior year. |
• | Transmission Revenues increased $26 million primarily due to 2018 provisions for refunds. |
• | Other
Operation and Maintenance expenses decreased $14 million primarily due to the following: |
• | A $39 million decrease due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement. |
• | A $10 million decrease in expense due to lower current year amortization of certain regulatory assets that were extinguished in August 2018 as agreed to
within the 2018 West Virginia Tax Reform settlement. |
• | An $8 million decrease in maintenance expense at various generation plants. |
• | A $5 million decrease in vegetation management expenses. |
• | A $5 million decrease in storm-related expenses. |
• | A
$5 million decrease in estimated expenses for claims related to asbestos exposure. |
• | A $42 million increase in PJM expenses primarily related to the annual formula rate true-up. |
• | A $13 million increase due to 2019 contributions to benefit low income West Virginia residential customers as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below. |
• | A
$5 million increase in employee-related expenses. |
• | Depreciation and Amortization expenses increased $29 million primarily due to a higher depreciable base and an increase in West Virginia depreciation rates beginning in March 2019. |
• | Taxes Other Than Income Taxes increased $7 million primarily due to
an increase in West Virginia business and occupational taxes. |
• | Interest Expense increased $7 million primarily due to higher long-term debt balances. |
• | Income Tax Expense (Benefit) decreased $12 million primarily due to an increase in amortization of Excess ADIT not subject to normalization requirements and a decrease in pretax book income. This benefit was partially offset
by the one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 West Virginia Tax Reform settlement. This decrease was partially offset in Gross Margin and Other Operation and Maintenance expenses above. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Electric
Generation, Transmission and Distribution | $ | i 696.7 | $ | i 716.8 | $ | i 2,041.3 | $ | i 2,103.1 | ||||||||
Sales
to AEP Affiliates | i 56.6 | i 42.9 | i 154.6 | i 138.7 | ||||||||||||
Other
Revenues | i 2.2 | i 2.3 | i 8.2 | i 7.6 | ||||||||||||
TOTAL
REVENUES | i 755.5 | i 762.0 | i 2,204.1 | i 2,249.4 | ||||||||||||
EXPENSES | ||||||||||||||||
Fuel
and Other Consumables Used for Electric Generation | i 177.3 | i 263.4 | i 521.8 | i 487.7 | ||||||||||||
Purchased
Electricity for Resale | i 78.3 | i 80.4 | i 253.4 | i 350.8 | ||||||||||||
Other
Operation | i 140.4 | i 131.9 | i 416.2 | i 380.0 | ||||||||||||
Maintenance | i 61.5 | i 97.2 | i 184.3 | i 234.9 | ||||||||||||
Depreciation
and Amortization | i 118.7 | i 105.7 | i 348.3 | i 319.5 | ||||||||||||
Taxes
Other Than Income Taxes | i 36.7 | i 33.6 | i 108.5 | i 101.1 | ||||||||||||
TOTAL
EXPENSES | i 612.9 | i 712.2 | i 1,832.5 | i 1,874.0 | ||||||||||||
OPERATING
INCOME | i 142.6 | i 49.8 | i 371.6 | i 375.4 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Interest Income | i 0.3 | i 0.4 | i 2.1 | i 1.3 | ||||||||||||
Carrying
Costs Income | i — | i 0.2 | i — | i 1.2 | ||||||||||||
Allowance
for Equity Funds Used During Construction | i 4.8 | i 4.1 | i 12.5 | i 9.6 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 4.3 | i 4.5 | i 12.8 | i 13.4 | ||||||||||||
Interest
Expense | ( i 51.6 | ) | ( i 50.8 | ) | ( i 152.5 | ) | ( i 146.0 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE (BENEFIT) | i 100.4 | i 8.2 | i 246.5 | i 254.9 | ||||||||||||
Income
Tax Expense (Benefit) | ( i 3.9 | ) | ( i 78.9 | ) | ( i 47.0 | ) | ( i 35.1 | ) | ||||||||
NET
INCOME | $ | i 104.3 | $ | i 87.1 | $ | i 293.5 | $ | i 290.0 | ||||||||
The
common stock of APCo is wholly-owned by Parent. | ||||
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net
Income | $ | i 104.3 | $ | i 87.1 | $ | i 293.5 | $ | i 290.0 | ||||||||
OTHER
COMPREHENSIVE LOSS, NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of Tax of $(0.1) and $(0.1) for the Three Months Ended September 30, 2019 and 2018,
Respectively, and $(0.2) and $(0.2) for the Nine Months Ended September 30, 2019 and 2018, Respectively | ( i 0.3 | ) | ( i 0.3 | ) | ( i 0.7 | ) | ( i 0.7 | ) | ||||||||
Amortization
of Pension and OPEB Deferred Costs, Net of Tax of $(0.2) and $(0.2) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.5) and $(0.6) for the Nine Months Ended September 30, 2019 and 2018, Respectively | ( i 0.6 | ) | ( i 0.7 | ) | ( i 1.9 | ) | ( i 2.3 | ) | ||||||||
TOTAL
OTHER COMPREHENSIVE LOSS | ( i 0.9 | ) | ( i 1.0 | ) | ( i 2.6 | ) | ( i 3.0 | ) | ||||||||
TOTAL
COMPREHENSIVE INCOME | $ | i 103.4 | $ | i 86.1 | $ | i 290.9 | $ | i 287.0 | ||||||||
Common Stock | Paid-in
Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017 | $ | i 260.4 | $ | i 1,828.7 | $ | i 1,714.1 | $ | i 1.3 | $ | i 3,804.5 | ||||||||||
Common
Stock Dividends | ( i 40.0 | ) | ( i 40.0 | ) | ||||||||||||||||
ASU
2018-02 Adoption | i 0.1 | i 0.3 | i 0.4 | |||||||||||||||||
Net
Income | i 125.5 | i 125.5 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 1.0 | ) | ( i 1.0 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018 | i 260.4 | i 1,828.7 | i 1,799.7 | i 0.6 | i 3,889.4 | |||||||||||||||
Common
Stock Dividends | ( i 40.0 | ) | ( i 40.0 | ) | ||||||||||||||||
Net
Income | i 77.4 | i 77.4 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 1.0 | ) | ( i 1.0 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018 | i 260.4 | i 1,828.7 | i 1,837.1 | ( i 0.4 | ) | i 3,925.8 | ||||||||||||||
Common
Stock Dividends | ( i 40.0 | ) | ( i 40.0 | ) | ||||||||||||||||
Net
Income | i 87.1 | i 87.1 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 1.0 | ) | ( i 1.0 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018 | $ | i 260.4 | $ | i 1,828.7 | $ | i 1,884.2 | $ | ( i 1.4 | ) | $ | i 3,971.9 | |||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018 | $ | i 260.4 | $ | i 1,828.7 | $ | i 1,922.0 | $ | ( i 5.0 | ) | $ | i 4,006.1 | |||||||||
Common
Stock Dividends | ( i 50.0 | ) | ( i 50.0 | ) | ||||||||||||||||
Net
Income | i 133.7 | i 133.7 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.8 | ) | ( i 0.8 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019 | i 260.4 | i 1,828.7 | i 2,005.7 | ( i 5.8 | ) | i 4,089.0 | ||||||||||||||
Common
Stock Dividends | ( i 50.0 | ) | ( i 50.0 | ) | ||||||||||||||||
Net
Income | i 55.5 | i 55.5 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.9 | ) | ( i 0.9 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019 | i 260.4 | i 1,828.7 | i 2,011.2 | ( i 6.7 | ) | i 4,093.6 | ||||||||||||||
Common
Stock Dividends | ( i 25.0 | ) | ( i 25.0 | ) | ||||||||||||||||
Net
Income | i 104.3 | i 104.3 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.9 | ) | ( i 0.9 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019 | $ | i 260.4 | $ | i 1,828.7 | $ | i 2,090.5 | $ | ( i 7.6 | ) | $ | i 4,172.0 | |||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents | $ | i 3.5 | $ | i 4.2 | ||||
Restricted
Cash for Securitized Funding | i 17.1 | i 25.6 | ||||||
Advances
to Affiliates | i 22.7 | i 23.0 | ||||||
Accounts
Receivable: | ||||||||
Customers | i 112.1 | i 146.5 | ||||||
Affiliated
Companies | i 56.4 | i 73.4 | ||||||
Accrued
Unbilled Revenues | i 56.9 | i 63.5 | ||||||
Miscellaneous | i 1.0 | i 2.3 | ||||||
Allowance
for Uncollectible Accounts | ( i 2.3 | ) | ( i 2.3 | ) | ||||
Total
Accounts Receivable | i 224.1 | i 283.4 | ||||||
Fuel | i 108.8 | i 61.3 | ||||||
Materials
and Supplies | i 102.1 | i 100.1 | ||||||
Risk
Management Assets | i 56.5 | i 57.2 | ||||||
Regulatory
Asset for Under-Recovered Fuel Costs | i 43.7 | i 99.6 | ||||||
Prepayments
and Other Current Assets | i 36.3 | i 44.3 | ||||||
TOTAL
CURRENT ASSETS | i 614.8 | i 698.7 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Generation | i 6,560.5 | i 6,509.6 | ||||||
Transmission | i 3,412.4 | i 3,317.7 | ||||||
Distribution | i 4,126.7 | i 3,989.4 | ||||||
Other
Property, Plant and Equipment | i 525.3 | i 485.8 | ||||||
Construction
Work in Progress | i 667.4 | i 490.2 | ||||||
Total
Property, Plant and Equipment | i 15,292.3 | i 14,792.7 | ||||||
Accumulated
Depreciation and Amortization | i 4,300.2 | i 4,124.4 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 10,992.1 | i 10,668.3 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 474.2 | i 475.8 | ||||||
Securitized
Assets | i 240.6 | i 258.7 | ||||||
Long-term
Risk Management Assets | i 0.2 | i 0.9 | ||||||
Operating
Lease Assets | i 79.4 | i — | ||||||
Deferred
Charges and Other Noncurrent Assets | i 159.3 | i 188.1 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 953.7 | i 923.5 | ||||||
TOTAL
ASSETS | $ | i 12,560.6 | $ | i 12,290.5 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
(in millions) | ||||||||
CURRENT LIABILITIES | ||||||||
Advances
from Affiliates | $ | i 40.4 | $ | i 205.6 | ||||
Accounts
Payable: | ||||||||
General | i 298.5 | i 263.8 | ||||||
Affiliated
Companies | i 90.8 | i 84.0 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated | i 215.6 | i 430.7 | ||||||
Risk
Management Liabilities | i 1.1 | i 0.4 | ||||||
Customer
Deposits | i 85.1 | i 88.4 | ||||||
Accrued
Taxes | i 58.2 | i 89.3 | ||||||
Accrued
Interest | i 67.5 | i 41.5 | ||||||
Obligations
Under Operating Leases | i 15.3 | i — | ||||||
Other
Current Liabilities | i 107.6 | i 150.3 | ||||||
TOTAL
CURRENT LIABILITIES | i 980.1 | i 1,354.0 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated | i 4,147.3 | i 3,631.9 | ||||||
Long-term
Risk Management Liabilities | i 0.3 | i 0.2 | ||||||
Deferred
Income Taxes | i 1,640.8 | i 1,625.8 | ||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 1,336.9 | i 1,449.7 | ||||||
Asset
Retirement Obligations | i 108.2 | i 107.1 | ||||||
Employee
Benefits and Pension Obligations | i 52.7 | i 57.1 | ||||||
Obligations
Under Operating Leases | i 64.8 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 57.5 | i 58.6 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 7,408.5 | i 6,930.4 | ||||||
TOTAL
LIABILITIES | i 8,388.6 | i 8,284.4 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
COMMON
SHAREHOLDER’S EQUITY | ||||||||
Common Stock – No Par Value: | ||||||||
Authorized – 30,000,000 Shares | ||||||||
Outstanding
– 13,499,500 Shares | i 260.4 | i 260.4 | ||||||
Paid-in
Capital | i 1,828.7 | i 1,828.7 | ||||||
Retained
Earnings | i 2,090.5 | i 1,922.0 | ||||||
Accumulated
Other Comprehensive Income (Loss) | ( i 7.6 | ) | ( i 5.0 | ) | ||||
TOTAL
COMMON SHAREHOLDER’S EQUITY | i 4,172.0 | i 4,006.1 | ||||||
TOTAL
LIABILITIES AND COMMON SHAREHOLDER’S EQUITY | $ | i 12,560.6 | $ | i 12,290.5 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 293.5 | $ | i 290.0 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 348.3 | i 319.5 | ||||||
Deferred
Income Taxes | ( i 101.9 | ) | ( i 83.8 | ) | ||||
Allowance
for Equity Funds Used During Construction | ( i 12.5 | ) | ( i 9.6 | ) | ||||
Mark-to-Market
of Risk Management Contracts | i 2.2 | ( i 43.7 | ) | |||||
Deferred
Fuel Over/Under-Recovery, Net | i 60.8 | i 12.8 | ||||||
Change
in Other Noncurrent Assets | i 6.7 | i 94.8 | ||||||
Change
in Other Noncurrent Liabilities | ( i 29.6 | ) | i 3.8 | |||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | i 61.7 | i 39.4 | ||||||
Fuel,
Materials and Supplies | ( i 49.2 | ) | i 53.0 | |||||
Accounts
Payable | i 40.1 | ( i 21.5 | ) | |||||
Accrued
Taxes, Net | ( i 30.2 | ) | ( i 20.2 | ) | ||||
Other
Current Assets | i 6.8 | ( i 7.9 | ) | |||||
Other
Current Liabilities | ( i 25.1 | ) | i 64.1 | |||||
Net
Cash Flows from Operating Activities | i 571.6 | i 690.7 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 607.1 | ) | ( i 575.8 | ) | ||||
Change
in Advances to Affiliates, Net | i 0.3 | i 0.4 | ||||||
Other
Investing Activities | i 22.8 | i 10.0 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 584.0 | ) | ( i 565.4 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Issuance of Long-term Debt – Nonaffiliated | i 478.2 | i 103.3 | ||||||
Change
in Advances from Affiliates, Net | ( i 165.2 | ) | ( i 87.5 | ) | ||||
Retirement
of Long-term Debt – Nonaffiliated | ( i 180.4 | ) | ( i 24.0 | ) | ||||
Principal
Payments for Finance Lease Obligations | ( i 5.0 | ) | ( i 5.2 | ) | ||||
Dividends
Paid on Common Stock | ( i 125.0 | ) | ( i 120.0 | ) | ||||
Other
Financing Activities | i 0.6 | i 1.0 | ||||||
Net
Cash Flows from (Used for) Financing Activities | i 3.2 | ( i 132.4 | ) | |||||
Net
Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Funding | ( i 9.2 | ) | ( i 7.1 | ) | ||||
Cash,
Cash Equivalents and Restricted Cash for Securitized Funding at Beginning of Period | i 29.8 | i 19.2 | ||||||
Cash,
Cash Equivalents and Restricted Cash for Securitized Funding at End of Period | $ | i 20.6 | $ | i 12.1 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 120.6 | $ | i 104.5 | ||||
Net
Cash Paid for Income Taxes | i 58.7 | i 26.7 | ||||||
Noncash
Acquisitions Under Finance Leases | i 7.1 | i 3.9 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 134.2 | i 87.6 | ||||||
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 1,496 | 1,562 | 4,159 | 4,430 | |||||||
Commercial | 1,312 | 1,348 | 3,555 | 3,708 | |||||||
Industrial | 1,937 | 2,018 | 5,742 | 5,920 | |||||||
Miscellaneous | 16 | 15 | 49 | 50 | |||||||
Total
Retail (a) | 4,761 | 4,943 | 13,505 | 14,108 | |||||||
Wholesale | 2,398 | 2,613 | 6,842 | 7,927 | |||||||
Total
KWhs | 7,159 | 7,556 | 20,347 | 22,035 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Actual – Heating (a) | — | 2 | 2,456 | 2,523 | |||||||
Normal – Heating (b) | 11 | 10 | 2,412 | 2,413 | |||||||
Actual
– Cooling (c) | 684 | 722 | 917 | 1,084 | |||||||
Normal – Cooling (b) | 573 | 574 | 836 | 837 | |||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Cooling degree days are calculated on a 65 degree temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Net Income | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 72.7 | ||
Changes
in Gross Margin: | ||||
Retail Margins | 17.5 | |||
Transmission Revenues | (1.7 | ) | ||
Other Revenues | 3.4 | |||
Total
Change in Gross Margin | 19.2 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | (17.1 | ) | ||
Depreciation
and Amortization | (2.9 | ) | ||
Taxes Other Than Income Taxes | (2.1 | ) | ||
Other Income | (2.6 | ) | ||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.1 | ) | ||
Interest
Expense | 5.7 | |||
Total Change in Expenses and Other | (19.1 | ) | ||
Income Tax Expense (Benefit) | 16.0 | |||
Third
Quarter of 2019 | $ | 88.8 | ||
• | Retail Margins
increased $18 million primarily due to the following: |
• | A $19 million increase from rate proceedings. This increase was partially offset in other expense items below. |
• | An $8 million increase related to rider revenues, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below. |
• | A
$6 million decrease in weather-normalized margins across all retail classes. |
• | A $3 million decrease in weather-related usage primarily due to a 5% decrease in cooling degree days. |
• | Other Revenues increased $3 million primarily due to an increase in barging deliveries by River Transportation Division (RTD). The increase in RTD revenue was offset by a corresponding increase in Other Operation and Maintenance expenses for barging activities discussed below. |
• | Other Operation and Maintenance expenses increased $17 million primarily due to the following: |
• | A $15 million increase in transmission expenses primarily due to a $10 million increase in recoverable PJM expenses and a $6 million increase
from the amortization of credits under the 2018 Regional Transmission Enhancement Plan settlement. This increase was partially offset in Retail Margins above. |
• | A $4 million increase in RTD expenses for barging activities. The increase in RTD expenses was offset by a corresponding increase in Other Revenues from barging activities discussed above. |
• | Depreciation and Amortization expenses increased
$3 million primarily due to a higher depreciable base. This increase was partially offset in Retail Margins above. |
• | Interest Expense decreased $6 million primarily due to the reissuance of long-term debt at lower interest rates in 2018. |
• | Income Tax Expense (Benefit) decreased
$16 million primarily due to increased amortization of Excess ADIT not subject to normalization requirements and a decrease in flow-through tax expense. |
Reconciliation of Nine
Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Net Income | ||||
(in millions) | ||||
Nine Months Ended September 30, 2018 | $ | 231.6 | ||
Changes
in Gross Margin: | ||||
Retail Margins | 89.7 | |||
Margins from Off-system Sales | (9.4 | ) | ||
Transmission Revenues | (12.0 | ) | ||
Other
Revenues | 3.7 | |||
Total Change in Gross Margin | 72.0 | |||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | (36.6 | ) | ||
Depreciation and Amortization | (54.5 | ) | ||
Taxes Other Than Income Taxes | (5.7 | ) | ||
Other Income | (0.1 | ) | ||
Non-Service
Cost Components of Net Periodic Benefit Cost | (0.3 | ) | ||
Interest Expense | 9.7 | |||
Total Change in Expenses and Other | (87.5 | ) | ||
Income
Tax Expense (Benefit) | 31.9 | |||
Nine Months Ended September 30, 2019 | $ | 248.0 | ||
• | Retail Margins increased $90 million primarily due to the following: |
• | A $94 million increase from rate proceedings, inclusive of a $30 million decrease
due to the impact of Tax Reform. This increase was partially offset in other expense items below. |
• | A $21 million increase related to rider revenues, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below. |
• | A $6 million decrease in fuel-related expenses due to timing of recovery for fuel and other variable production costs related to wholesale contracts. |
• | A $19 million decrease in weather-related usage primarily due to a 15% decrease in cooling degree days and a 3% decrease in heating degree days. |
• | A $16 million decrease in weather-normalized margins across all retail classes. |
• | Margins from Off-system Sales
decreased $9 million primarily due to mid-year 2018 changes in the OSS sharing mechanism. |
• | Transmission Revenues decreased $12 million primarily due to the 2018 PJM Transmission formula rate true-up. |
• | Other Revenues increased $4 million primarily due to an increase in barging deliveries by RTD. The increase in RTD revenue was offset by a corresponding
increase in Other Operation and Maintenance expenses for barging activities discussed below. |
• | A
$32 million increase in transmission expenses primarily due to a $44 million increase in recoverable PJM expenses, partially offset by an $11 million decrease from the amortization of credits under the 2018 Regional Transmission Enhancement Plan settlement. This increase was partially offset in Retail Margins above. |
• | A $6 million increase in RTD expenses for barging activities. The increase in RTD expenses was offset by a corresponding increase in Other Revenues from barging activities discussed above. |
• | A $5 million
increase in distribution costs primarily due to vegetation management expenses. |
• | A $9 million decrease in generation expenses at Cook Plant primarily due to decreased incremental refueling outage costs. |
• | Depreciation and Amortization expenses increased $55 million
primarily due to increased depreciation rates approved in 2018 and a higher depreciable base. This increase was partially offset in Retail Margins above. |
• | Taxes Other Than Income Taxes increased $6 million due to property taxes driven by an increase in utility plant. |
• | Interest Expense decreased $10 million primarily due to the reissuance of long-term debt at lower interest
rates in 2018. |
• | Income Tax Expense (Benefit) decreased $32 million primarily due to increased amortization of Excess ADIT not subject to normalization requirements and a decrease in flow-through tax expense. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Electric
Generation, Transmission and Distribution | $ | i 589.1 | $ | i 609.9 | $ | i 1,703.2 | $ | i 1,723.9 | ||||||||
Sales
to AEP Affiliates | i 2.7 | i 3.4 | i 7.3 | i 18.9 | ||||||||||||
Other
Revenues – Affiliated | i 16.2 | i 13.7 | i 50.4 | i 43.3 | ||||||||||||
Other
Revenues – Nonaffiliated | i 3.1 | i 2.7 | i 7.6 | i 10.1 | ||||||||||||
TOTAL
REVENUES | i 611.1 | i 629.7 | i 1,768.5 | i 1,796.2 | ||||||||||||
EXPENSES | ||||||||||||||||
Fuel
and Other Consumables Used for Electric Generation | i 61.2 | i 95.9 | i 161.2 | i 246.8 | ||||||||||||
Purchased
Electricity for Resale | i 44.8 | i 48.9 | i 163.3 | i 167.7 | ||||||||||||
Purchased
Electricity from AEP Affiliates | i 61.0 | i 60.0 | i 172.1 | i 181.8 | ||||||||||||
Other
Operation | i 172.7 | i 149.3 | i 467.7 | i 425.8 | ||||||||||||
Maintenance | i 50.9 | i 57.2 | i 163.8 | i 169.1 | ||||||||||||
Depreciation
and Amortization | i 88.1 | i 85.2 | i 261.6 | i 207.1 | ||||||||||||
Taxes
Other Than Income Taxes | i 25.1 | i 23.0 | i 78.6 | i 72.9 | ||||||||||||
TOTAL
EXPENSES | i 503.8 | i 519.5 | i 1,468.3 | i 1,471.2 | ||||||||||||
OPERATING
INCOME | i 107.3 | i 110.2 | i 300.2 | i 325.0 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Other Income | i 3.5 | i 6.1 | i 15.3 | i 15.4 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 4.5 | i 4.6 | i 13.3 | i 13.6 | ||||||||||||
Interest
Expense | ( i 28.8 | ) | ( i 34.5 | ) | ( i 85.9 | ) | ( i 95.6 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE (BENEFIT) | i 86.5 | i 86.4 | i 242.9 | i 258.4 | ||||||||||||
Income
Tax Expense (Benefit) | ( i 2.3 | ) | i 13.7 | ( i 5.1 | ) | i 26.8 | ||||||||||
NET
INCOME | $ | i 88.8 | $ | i 72.7 | $ | i 248.0 | $ | i 231.6 | ||||||||
The
common stock of I&M is wholly-owned by Parent. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net
Income | $ | i 88.8 | $ | i 72.7 | $ | i 248.0 | $ | i 231.6 | ||||||||
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of Tax of $0.1 and $0.1 for the Three Months Ended September
30, 2019 and 2018, Respectively, and $0.3 and $0.3 for the Nine Months Ended September 30, 2019 and 2018, Respectively | i 0.4 | i 0.3 | i 1.2 | i 1.2 | ||||||||||||
Amortization
of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0 and $0 for the Nine Months Ended September 30, 2019 and 2018, Respectively | i — | i — | ( i 0.1 | ) | i — | |||||||||||
TOTAL
OTHER COMPREHENSIVE INCOME | i 0.4 | i 0.3 | i 1.1 | i 1.2 | ||||||||||||
TOTAL
COMPREHENSIVE INCOME | $ | i 89.2 | $ | i 73.0 | $ | i 249.1 | $ | i 232.8 | ||||||||
Common Stock | Paid-in
Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017 | $ | i 56.6 | $ | i 980.9 | $ | i 1,192.2 | $ | ( i 12.1 | ) | $ | i 2,217.6 | |||||||||
Common
Stock Dividends | ( i 33.5 | ) | ( i 33.5 | ) | ||||||||||||||||
ASU
2018-02 Adoption | i 0.3 | ( i 2.7 | ) | ( i 2.4 | ) | |||||||||||||||
Net
Income | i 64.2 | i 64.2 | ||||||||||||||||||
Other
Comprehensive Income | i 0.4 | i 0.4 | ||||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018 | i 56.6 | i 980.9 | i 1,223.2 | ( i 14.4 | ) | i 2,246.3 | ||||||||||||||
Common
Stock Dividends | ( i 33.5 | ) | ( i 33.5 | ) | ||||||||||||||||
Net
Income | i 94.7 | i 94.7 | ||||||||||||||||||
Other
Comprehensive Income | i 0.5 | i 0.5 | ||||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018 | i 56.6 | i 980.9 | i 1,284.4 | ( i 13.9 | ) | i 2,308.0 | ||||||||||||||
Common
Stock Dividends | ( i 38.5 | ) | ( i 38.5 | ) | ||||||||||||||||
Net
Income | i 72.7 | i 72.7 | ||||||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018 | $ | i 56.6 | $ | i 980.9 | $ | i 1,318.6 | $ | ( i 13.6 | ) | $ | i 2,342.5 | |||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018 | $ | i 56.6 | $ | i 980.9 | $ | i 1,329.1 | $ | ( i 13.8 | ) | $ | i 2,352.8 | |||||||||
Common
Stock Dividends | ( i 20.0 | ) | ( i 20.0 | ) | ||||||||||||||||
Net
Income | i 98.9 | i 98.9 | ||||||||||||||||||
Other
Comprehensive Income | i 0.4 | i 0.4 | ||||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019 | i 56.6 | i 980.9 | i 1,408.0 | ( i 13.4 | ) | i 2,432.1 | ||||||||||||||
Common
Stock Dividends | ( i 20.0 | ) | ( i 20.0 | ) | ||||||||||||||||
Net
Income | i 60.3 | i 60.3 | ||||||||||||||||||
Other
Comprehensive Income | i 0.3 | i 0.3 | ||||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019 | i 56.6 | i 980.9 | i 1,448.3 | ( i 13.1 | ) | i 2,472.7 | ||||||||||||||
Common
Stock Dividends | ( i 20.0 | ) | ( i 20.0 | ) | ||||||||||||||||
Net
Income | i 88.8 | i 88.8 | ||||||||||||||||||
Other
Comprehensive Income | i 0.4 | i 0.4 | ||||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019 | $ | i 56.6 | $ | i 980.9 | $ | i 1,517.1 | $ | ( i 12.7 | ) | $ | i 2,541.9 | |||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents | $ | i 2.5 | $ | i 2.4 | ||||
Advances
to Affiliates | i 13.2 | i 12.7 | ||||||
Accounts
Receivable: | ||||||||
Customers | i 45.0 | i 63.1 | ||||||
Affiliated
Companies | i 45.3 | i 75.0 | ||||||
Accrued
Unbilled Revenues | i 2.7 | i 3.6 | ||||||
Miscellaneous | i 1.0 | i 1.4 | ||||||
Allowance
for Uncollectible Accounts | ( i 0.1 | ) | ( i 0.1 | ) | ||||
Total
Accounts Receivable | i 93.9 | i 143.0 | ||||||
Fuel | i 39.8 | i 37.3 | ||||||
Materials
and Supplies | i 169.9 | i 167.3 | ||||||
Risk
Management Assets | i 10.5 | i 8.6 | ||||||
Accrued
Tax Benefits | i 43.2 | i 26.6 | ||||||
Accrued
Reimbursement of Spent Nuclear Fuel Costs | i 24.2 | i 7.9 | ||||||
Prepayments
and Other Current Assets | i 16.9 | i 24.6 | ||||||
TOTAL
CURRENT ASSETS | i 414.1 | i 430.4 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Generation | i 5,002.0 | i 4,887.2 | ||||||
Transmission | i 1,614.5 | i 1,576.8 | ||||||
Distribution | i 2,373.3 | i 2,249.7 | ||||||
Other
Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel) | i 607.2 | i 583.8 | ||||||
Construction
Work in Progress | i 516.2 | i 465.3 | ||||||
Total
Property, Plant and Equipment | i 10,113.2 | i 9,762.8 | ||||||
Accumulated
Depreciation, Depletion and Amortization | i 3,280.5 | i 3,151.6 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 6,832.7 | i 6,611.2 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 490.2 | i 512.5 | ||||||
Spent
Nuclear Fuel and Decommissioning Trusts | i 2,835.2 | i 2,474.9 | ||||||
Long-term
Risk Management Assets | i 0.1 | i 0.6 | ||||||
Operating
Lease Assets | i 295.3 | i — | ||||||
Deferred
Charges and Other Noncurrent Assets | i 129.6 | i 193.0 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 3,750.4 | i 3,181.0 | ||||||
TOTAL
ASSETS | $ | i 10,997.2 | $ | i 10,222.6 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
LIABILITIES | ||||||||
Advances from Affiliates | $ | i 102.4 | $ | i 1.1 | ||||
Accounts
Payable: | ||||||||
General | i 148.4 | i 174.7 | ||||||
Affiliated
Companies | i 71.6 | i 70.2 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated (September 30, 2019 and December 31, 2018 Amounts Include $68.8 and $76.8, Respectively, Related to DCC Fuel) | i 147.4 | i 155.4 | ||||||
Risk
Management Liabilities | i 0.2 | i 0.3 | ||||||
Customer
Deposits | i 37.9 | i 38.0 | ||||||
Accrued
Taxes | i 57.9 | i 90.7 | ||||||
Accrued
Interest | i 20.5 | i 37.3 | ||||||
Obligations
Under Operating Leases | i 82.0 | i — | ||||||
Regulatory
Liability for Over-Recovered Fuel Costs | i 7.3 | i 27.4 | ||||||
Other
Current Liabilities | i 85.5 | i 103.0 | ||||||
TOTAL
CURRENT LIABILITIES | i 761.1 | i 698.1 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated | i 2,884.1 | i 2,880.0 | ||||||
Long-term
Risk Management Liabilities | i — | i 0.1 | ||||||
Deferred
Income Taxes | i 970.0 | i 948.0 | ||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 1,809.0 | i 1,574.5 | ||||||
Asset
Retirement Obligations | i 1,731.5 | i 1,681.3 | ||||||
Obligations
Under Operating Leases | i 234.0 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 65.6 | i 87.8 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 7,694.2 | i 7,171.7 | ||||||
TOTAL
LIABILITIES | i 8,455.3 | i 7,869.8 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
COMMON
SHAREHOLDER’S EQUITY | ||||||||
Common Stock – No Par Value: | ||||||||
Authorized – 2,500,000 Shares | ||||||||
Outstanding
– 1,400,000 Shares | i 56.6 | i 56.6 | ||||||
Paid-in
Capital | i 980.9 | i 980.9 | ||||||
Retained
Earnings | i 1,517.1 | i 1,329.1 | ||||||
Accumulated
Other Comprehensive Income (Loss) | ( i 12.7 | ) | ( i 13.8 | ) | ||||
TOTAL
COMMON SHAREHOLDER’S EQUITY | i 2,541.9 | i 2,352.8 | ||||||
TOTAL
LIABILITIES AND COMMON SHAREHOLDER’S EQUITY | $ | i 10,997.2 | $ | i 10,222.6 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 248.0 | $ | i 231.6 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 261.6 | i 207.1 | ||||||
Rent
- Rockport Plant, Unit 2 | i 58.9 | i — | ||||||
Deferred
Income Taxes | ( i 29.9 | ) | i 28.1 | |||||
Amortization
(Deferral) of Incremental Nuclear Refueling Outage Expenses, Net | ( i 11.6 | ) | i 13.5 | |||||
Allowance
for Equity Funds Used During Construction | ( i 16.4 | ) | ( i 8.0 | ) | ||||
Mark-to-Market
of Risk Management Contracts | ( i 1.6 | ) | ( i 0.3 | ) | ||||
Amortization
of Nuclear Fuel | i 71.6 | i 82.6 | ||||||
Deferred
Fuel Over/Under-Recovery, Net | ( i 20.0 | ) | i 29.6 | |||||
Change
in Other Noncurrent Assets | i 46.0 | ( i 12.0 | ) | |||||
Change
in Other Noncurrent Liabilities | i 13.8 | i 46.3 | ||||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | i 50.5 | i 6.5 | ||||||
Fuel,
Materials and Supplies | ( i 4.6 | ) | ( i 1.1 | ) | ||||
Accounts
Payable | ( i 7.3 | ) | ( i 34.7 | ) | ||||
Accrued
Taxes, Net | ( i 49.4 | ) | ( i 7.1 | ) | ||||
Payments
for Rockport Plant, Unit 2 Operating Lease | ( i 36.9 | ) | i — | |||||
Other
Current Assets | i 7.8 | i 4.9 | ||||||
Other
Current Liabilities | ( i 49.7 | ) | ( i 15.7 | ) | ||||
Net
Cash Flows from Operating Activities | i 530.8 | i 571.3 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 431.7 | ) | ( i 434.5 | ) | ||||
Change
in Advances to Affiliates, Net | ( i 0.5 | ) | ( i 60.1 | ) | ||||
Purchases
of Investment Securities | ( i 915.7 | ) | ( i 1,589.0 | ) | ||||
Sales
of Investment Securities | i 871.4 | i 1,550.9 | ||||||
Acquisitions
of Nuclear Fuel | ( i 91.9 | ) | ( i 26.1 | ) | ||||
Other
Investing Activities | i 10.5 | i 9.2 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 557.9 | ) | ( i 549.6 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Issuance of Long-term Debt – Nonaffiliated | i 62.9 | i 1,168.1 | ||||||
Change
in Advances from Affiliates, Net | i 101.3 | ( i 211.6 | ) | |||||
Retirement
of Long-term Debt – Nonaffiliated | ( i 73.6 | ) | ( i 856.1 | ) | ||||
Principal
Payments for Finance Lease Obligations | ( i 4.0 | ) | ( i 7.3 | ) | ||||
Dividends
Paid on Common Stock | ( i 60.0 | ) | ( i 105.5 | ) | ||||
Other
Financing Activities | i 0.6 | ( i 9.0 | ) | |||||
Net
Cash Flows from (Used for) Financing Activities | i 27.2 | ( i 21.4 | ) | |||||
Net
Increase in Cash and Cash Equivalents | i 0.1 | i 0.3 | ||||||
Cash
and Cash Equivalents at Beginning of Period | i 2.4 | i 1.3 | ||||||
Cash
and Cash Equivalents at End of Period | $ | i 2.5 | $ | i 1.6 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 98.7 | $ | i 104.4 | ||||
Net
Cash Paid (Received) for Income Taxes | i 40.2 | ( i 26.5 | ) | |||||
Noncash
Acquisitions Under Finance Leases | i 8.1 | i 4.4 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 76.3 | i 66.4 | ||||||
Acquisition
of Nuclear Fuel Included in Current Liabilities as of September 30, | i — | i 12.1 | ||||||
Expected
Reimbursement for Capital Cost of Spent Nuclear Fuel Dry Cask Storage | i — | i 2.1 | ||||||
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 4,120 | 4,055 | 11,034 | 11,475 | |||||||
Commercial | 4,067 | 3,971 | 11,072 | 11,146 | |||||||
Industrial | 3,689 | 3,688 | 10,936 | 11,066 | |||||||
Miscellaneous | 26 | 27 | 83 | 84 | |||||||
Total
Retail (a)(b) | 11,902 | 11,741 | 33,125 | 33,771 | |||||||
Wholesale
(c) | 453 | 634 | 1,531 | 1,835 | |||||||
Total
KWhs | 12,355 | 12,375 | 34,656 | 35,606 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Represents energy delivered to distribution customers. |
(c) | Primarily Ohio’s contractually obligated purchases of OVEC power sold to PJM. |
Three Months Ended | Nine
Months Ended | |||||||||||
September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
(in
degree days) | ||||||||||||
Actual – Heating (a) | — | — | 2,006 | 2,158 | ||||||||
Normal
– Heating (b) | 6 | 6 | 2,072 | 2,076 | ||||||||
Actual
– Cooling (c) | 872 | 864 | 1,176 | 1,322 | ||||||||
Normal – Cooling (b) | 672 | 670 | 973 | 964 | ||||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Cooling degree days are calculated on a 65 degree temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Net Income | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 88.7 | ||
Changes
in Gross Margin: | ||||
Retail Margins | (2.9 | ) | ||
Margins from Off-system Sales | (12.2 | ) | ||
Transmission Revenues | 0.5 | |||
Other
Revenues | 1.7 | |||
Total Change in Gross Margin | (12.9 | ) | ||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | 23.7 | |||
Depreciation and Amortization | 13.0 | |||
Taxes Other Than Income Taxes | (5.1 | ) | ||
Carrying Costs Income | 0.1 | |||
Allowance
for Equity Funds Used During Construction | 2.8 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.1 | ) | ||
Interest Expense | (1.8 | ) | ||
Total Change
in Expenses and Other | 32.6 | |||
Income Tax Expense (Benefit) | (39.3 | ) | ||
Third
Quarter of 2019 | $ | 69.1 | ||
• | Retail Margins decreased $3
million primarily due to the following: |
• | A $28 million net decrease in Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below. |
• | A $13 million decrease in Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below. |
• | An
$8 million net decrease in margin for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019. |
• | A $6 million decrease in revenues associated with a vegetation management rider. This decrease was offset in Other Operation and Maintenance expenses below. |
• | A $6 million net decrease in margin for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019. |
• | A $27 million net increase primarily due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below. |
• | A $12 million increase due to the recovery of higher current year losses from a power contract with OVEC. This increase was offset in Margins from Off-system Sales below. |
• | A
$9 million increase in revenues associated with smart grid riders. This increase was partially offset in other expense items below. |
• | A $4 million increase in rider revenues associated with the DIR. This decrease was partially offset in other expense items below. |
• | A $3 million increase in Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset in Other Operation and Maintenance expenses below. |
• | Margins
from Off-system Sales decreased $12 million primarily due to higher current year losses from a power contract with OVEC and lower deferrals as a result of the OVEC PPA rider. This decrease was offset in Retail Margins above. |
• | Other Operation and Maintenance expenses decreased $24 million
primarily due to the following: |
• | A $26 million decrease in recoverable PJM expenses. This decrease was offset in Gross Margin above. |
• | A $5 million decrease in recoverable distribution expenses related to vegetation management. This decrease was partially offset in Retail Margins above. |
• | A
$4 million decrease due to higher charitable contributions in 2018. |
• | A $13 million increase in PJM expenses primarily related to the annual formula rate true-up. |
• | Depreciation and Amortization expenses decreased $13 million primarily due to the following: |
• | An
$8 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider which ended in the second quarter of 2019. This decrease was offset in Retail Margins above. |
• | A $6 million decrease in recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above. |
• | A $4 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution
assets. |
• | Taxes Other Than Income Taxes increased $5 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates. |
• | Income Tax Expense (Benefit) increased $39 million primarily due to a one-time recognition of increased
amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above. |
Reconciliation
of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Net Income | ||||
(in millions) | ||||
Nine Months Ended September 30, 2018 | $ | 237.1 | ||
Changes
in Gross Margin: | ||||
Retail Margins | 9.2 | |||
Margins from Off-system Sales | (20.8 | ) | ||
Transmission Revenues | 5.9 | |||
Other
Revenues | 6.0 | |||
Total Change in Gross Margin | 0.3 | |||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | 28.7 | |||
Depreciation and Amortization | 23.5 | |||
Taxes Other Than Income Taxes | (15.9 | ) | ||
Interest Income | 0.1 | |||
Carrying
Costs Income | (0.8 | ) | ||
Allowance for Equity Funds Used During Construction | 6.3 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.6 | ) | ||
Interest
Expense | (1.5 | ) | ||
Total Change in Expenses and Other | 39.8 | |||
Income Tax Expense (Benefit) | (29.5 | ) | ||
Nine
Months Ended September 30, 2019 | $ | 247.7 | ||
• | Retail
Margins increased $9 million primarily due to the following: |
• | A $58 million increase due to a reversal of a regulatory provision. |
• | A $33 million net increase due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below. |
• | A
$31 million increase in revenues associated with smart grid riders. This increase was partially offset in other expense items below. |
• | A $21 million increase due to the recovery of higher current year losses from a power contract with OVEC. This increase was offset in Margins from Off-system Sales below. |
• | A $9 million increase in Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset in Other Operation and Maintenance expenses below. |
• | A $71 million net decrease in Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below. |
• | An $18 million decrease in revenues associated with a vegetation management rider. This decrease was offset in Other Operation and Maintenance expenses below. |
• | A
$16 million net decrease in margin for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019. |
• | A $13 million decrease in Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below. |
• | A
$12 million net decrease in margin for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019. |
• | An $8 million decrease in usage primarily in the residential and commercial classes. |
• | A $4 million decrease in rider revenues associated with the DIR. This decrease was partially offset in other expense items below. |
• | Margins
from Off-system Sales decreased $21 million primarily due to higher current year losses from a power contract with OVEC as a result of the OVEC PPA rider. This decrease was offset in Retail Margins above. |
• | Transmission Revenues increased $6 million primarily due to 2018 provisions for refunds, partially offset by the annual PJM Transmission formula rate true-up. |
• | Other
Revenues increased $6 million primarily due to distribution connection fees and pole attachment revenues. |
• | Other Operation and Maintenance expenses decreased $29 million primarily due to the following: |
• | A
$78 million decrease in recoverable PJM expenses. This decrease was offset in Gross Margin above. |
• | A $10 million decrease in recoverable distribution expenses related to vegetation management. This decrease was partially offset in Retail Margins above. |
• | A $57 million increase in PJM expenses primarily related to the annual formula rate true-up. |
• | Depreciation
and Amortization expenses decreased $24 million primarily due to the following: |
• | A $30 million decrease in recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above. |
• | An $11 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider which ended in the second quarter of 2019. This decrease was offset
in Retail Margins above. |
• | A $17 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets. |
• | Taxes Other Than Income Taxes increased $16 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates. |
• | Allowance
for Equity Funds Used During Construction increased $6 million primarily due to adjustments that resulted from 2019 FERC audit findings. |
• | Income Tax Expense (Benefit) increased $30 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above. |
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Electricity,
Transmission and Distribution | $ | i 698.6 | $ | i 772.6 | $ | i 2,127.4 | $ | i 2,294.8 | ||||||||
Sales
to AEP Affiliates | i 9.0 | i 3.3 | i 18.2 | i 17.9 | ||||||||||||
Other
Revenues | i 3.0 | i 2.4 | i 8.4 | i 5.3 | ||||||||||||
TOTAL
REVENUES | i 710.6 | i 778.3 | i 2,154.0 | i 2,318.0 | ||||||||||||
EXPENSES | ||||||||||||||||
Purchased
Electricity for Resale | i 158.3 | i 166.3 | i 454.0 | i 534.7 | ||||||||||||
Purchased
Electricity from AEP Affiliates | i 40.6 | i 39.3 | i 120.4 | i 97.4 | ||||||||||||
Amortization
of Generation Deferrals | i 8.8 | i 56.9 | i 65.3 | i 171.9 | ||||||||||||
Other
Operation | i 194.9 | i 215.2 | i 565.7 | i 586.4 | ||||||||||||
Maintenance | i 40.0 | i 43.4 | i 106.7 | i 114.7 | ||||||||||||
Depreciation
and Amortization | i 57.4 | i 70.4 | i 176.8 | i 200.3 | ||||||||||||
Taxes
Other Than Income Taxes | i 112.0 | i 106.9 | i 326.9 | i 311.0 | ||||||||||||
TOTAL
EXPENSES | i 612.0 | i 698.4 | i 1,815.8 | i 2,016.4 | ||||||||||||
OPERATING
INCOME | i 98.6 | i 79.9 | i 338.2 | i 301.6 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Interest Income | i 0.8 | i 0.8 | i 2.7 | i 2.6 | ||||||||||||
Carrying
Costs Income | i 0.3 | i 0.2 | i 0.7 | i 1.5 | ||||||||||||
Allowance
for Equity Funds Used During Construction | i 4.8 | i 2.0 | i 14.1 | i 7.8 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 3.7 | i 3.8 | i 11.0 | i 11.6 | ||||||||||||
Interest
Expense | ( i 27.9 | ) | ( i 26.1 | ) | ( i 78.1 | ) | ( i 76.6 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE (BENEFIT) | i 80.3 | i 60.6 | i 288.6 | i 248.5 | ||||||||||||
Income
Tax Expense (Benefit) | i 11.2 | ( i 28.1 | ) | i 40.9 | i 11.4 | |||||||||||
NET
INCOME | $ | i 69.1 | $ | i 88.7 | $ | i 247.7 | $ | i 237.1 | ||||||||
The
common stock of OPCo is wholly-owned by Parent. | ||||
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net
Income | $ | i 69.1 | $ | i 88.7 | $ | i 247.7 | $ | i 237.1 | ||||||||
OTHER
COMPREHENSIVE LOSS, NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of Tax of
$(0.1) and $(0.1) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.3) and $(0.3) for the Nine Months Ended September 30, 2019 and 2018, Respectively | ( i 0.3 | ) | ( i 0.4 | ) | ( i 1.0 | ) | ( i 1.0 | ) | ||||||||
TOTAL
COMPREHENSIVE INCOME | $ | i 68.8 | $ | i 88.3 | $ | i 246.7 | $ | i 236.1 | ||||||||
Common Stock | Paid-in
Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017 | $ | i 321.2 | $ | i 838.8 | $ | i 1,148.4 | $ | i 1.9 | $ | i 2,310.3 | ||||||||||
Common
Stock Dividends | ( i 112.5 | ) | ( i 112.5 | ) | ||||||||||||||||
ASU
2018-02 Adoption | i 0.4 | i 0.4 | ||||||||||||||||||
Net
Income | i 79.6 | i 79.6 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.3 | ) | ( i 0.3 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018 | i 321.2 | i 838.8 | i 1,115.5 | i 2.0 | i 2,277.5 | |||||||||||||||
Common
Stock Dividends | ( i 112.5 | ) | ( i 112.5 | ) | ||||||||||||||||
Net
Income | i 68.8 | i 68.8 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.3 | ) | ( i 0.3 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018 | i 321.2 | i 838.8 | i 1,071.8 | i 1.7 | i 2,233.5 | |||||||||||||||
Common
Stock Dividends | ( i 112.5 | ) | ( i 112.5 | ) | ||||||||||||||||
Net
Income | i 88.7 | i 88.7 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.4 | ) | ( i 0.4 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018 | $ | i 321.2 | $ | i 838.8 | $ | i 1,048.0 | $ | i 1.3 | $ | i 2,209.3 | ||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018 | $ | i 321.2 | $ | i 838.8 | $ | i 1,136.4 | $ | i 1.0 | $ | i 2,297.4 | ||||||||||
Common
Stock Dividends | ( i 25.0 | ) | ( i 25.0 | ) | ||||||||||||||||
Net
Income | i 128.0 | i 128.0 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.3 | ) | ( i 0.3 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019 | i 321.2 | i 838.8 | i 1,239.4 | i 0.7 | i 2,400.1 | |||||||||||||||
Common
Stock Dividends | ( i 60.0 | ) | ( i 60.0 | ) | ||||||||||||||||
Net
Income | i 50.6 | i 50.6 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.4 | ) | ( i 0.4 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019 | i 321.2 | i 838.8 | i 1,230.0 | i 0.3 | i 2,390.3 | |||||||||||||||
Net
Income | i 69.1 | i 69.1 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.3 | ) | ( i 0.3 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019 | $ | i 321.2 | $ | i 838.8 | $ | i 1,299.1 | $ | i — | $ | i 2,459.1 | ||||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents | $ | i 4.7 | $ | i 4.9 | ||||
Restricted
Cash for Securitized Funding | i — | i 27.6 | ||||||
Accounts
Receivable: | ||||||||
Customers | i 35.4 | i 111.1 | ||||||
Affiliated
Companies | i 56.2 | i 70.8 | ||||||
Accrued
Unbilled Revenues | i 26.5 | i 21.4 | ||||||
Miscellaneous | i 0.3 | i 0.3 | ||||||
Allowance
for Uncollectible Accounts | ( i 2.1 | ) | ( i 1.0 | ) | ||||
Total
Accounts Receivable | i 116.3 | i 202.6 | ||||||
Materials
and Supplies | i 48.5 | i 42.9 | ||||||
Renewable
Energy Credits | i 41.5 | i 25.9 | ||||||
Prepayments
and Other Current Assets | i 19.8 | i 15.7 | ||||||
TOTAL
CURRENT ASSETS | i 230.8 | i 319.6 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Transmission | i 2,613.0 | i 2,544.3 | ||||||
Distribution | i 5,192.8 | i 4,942.3 | ||||||
Other
Property, Plant and Equipment | i 662.3 | i 574.8 | ||||||
Construction
Work in Progress | i 485.3 | i 432.1 | ||||||
Total
Property, Plant and Equipment | i 8,953.4 | i 8,493.5 | ||||||
Accumulated
Depreciation and Amortization | i 2,256.1 | i 2,218.6 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 6,697.3 | i 6,274.9 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 372.2 | i 387.5 | ||||||
Securitized
Assets | i — | i 12.9 | ||||||
Deferred
Charges and Other Noncurrent Assets | i 320.3 | i 441.0 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 692.5 | i 841.4 | ||||||
TOTAL
ASSETS | $ | i 7,620.6 | $ | i 7,435.9 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
LIABILITIES | ||||||||
Advances from Affiliates | $ | i 17.6 | $ | i 114.1 | ||||
Accounts
Payable: | ||||||||
General | i 203.1 | i 211.9 | ||||||
Affiliated
Companies | i 100.2 | i 102.9 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated (September 30, 2019 and December 31, 2018 Amounts Include $0 and $47.8, Respectively, Related to Ohio Phase-in-Recovery Funding) | i 0.1 | i 47.9 | ||||||
Risk
Management Liabilities | i 7.2 | i 5.8 | ||||||
Customer
Deposits | i 88.2 | i 113.1 | ||||||
Accrued
Taxes | i 294.3 | i 537.8 | ||||||
Accrued
Interest | i 44.7 | i 31.4 | ||||||
Obligations
Under Operating Leases | i 12.8 | i — | ||||||
Other
Current Liabilities | i 99.4 | i 182.8 | ||||||
TOTAL
CURRENT LIABILITIES | i 867.6 | i 1,347.7 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated | i 2,113.8 | i 1,668.7 | ||||||
Long-term
Risk Management Liabilities | i 105.7 | i 93.8 | ||||||
Deferred
Income Taxes | i 805.0 | i 763.3 | ||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 1,143.6 | i 1,221.2 | ||||||
Obligations
Under Operating Leases | i 75.9 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 49.9 | i 43.8 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 4,293.9 | i 3,790.8 | ||||||
TOTAL
LIABILITIES | i 5,161.5 | i 5,138.5 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
COMMON
SHAREHOLDER’S EQUITY | ||||||||
Common Stock – No Par Value: | ||||||||
Authorized – 40,000,000 Shares | ||||||||
Outstanding
– 27,952,473 Shares | i 321.2 | i 321.2 | ||||||
Paid-in
Capital | i 838.8 | i 838.8 | ||||||
Retained
Earnings | i 1,299.1 | i 1,136.4 | ||||||
Accumulated
Other Comprehensive Income (Loss) | i — | i 1.0 | ||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY | i 2,459.1 | i 2,297.4 | ||||||
TOTAL
LIABILITIES AND COMMON SHAREHOLDER’S EQUITY | $ | i 7,620.6 | $ | i 7,435.9 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 247.7 | $ | i 237.1 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 176.8 | i 200.3 | ||||||
Amortization
of Generation Deferrals | i 65.3 | i 171.9 | ||||||
Deferred
Income Taxes | i 16.8 | ( i 71.9 | ) | |||||
Allowance
for Equity Funds Used During Construction | ( i 14.1 | ) | ( i 7.8 | ) | ||||
Mark-to-Market
of Risk Management Contracts | i 13.3 | ( i 37.1 | ) | |||||
Property
Taxes | i 197.7 | i 191.1 | ||||||
Refund
of Global Settlement | ( i 12.4 | ) | ( i 5.5 | ) | ||||
Reversal
of Regulatory Provision | ( i 56.2 | ) | i — | |||||
Change
in Regulatory Assets | ( i 28.1 | ) | i 180.9 | |||||
Change
in Other Noncurrent Assets | ( i 19.4 | ) | i 0.8 | |||||
Change
in Other Noncurrent Liabilities | ( i 51.1 | ) | i 62.5 | |||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | i 90.0 | i 21.3 | ||||||
Materials
and Supplies | ( i 9.6 | ) | ( i 3.7 | ) | ||||
Accounts
Payable | ( i 12.3 | ) | ( i 31.8 | ) | ||||
Accrued
Taxes, Net | ( i 245.9 | ) | ( i 210.6 | ) | ||||
Other
Current Assets | ( i 9.0 | ) | i 7.6 | |||||
Other
Current Liabilities | ( i 40.0 | ) | ( i 4.3 | ) | ||||
Net
Cash Flows from Operating Activities | i 309.5 | i 700.8 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 570.6 | ) | ( i 538.5 | ) | ||||
Other
Investing Activities | i 20.0 | i 15.5 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 550.6 | ) | ( i 523.0 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Issuance of Long-term Debt – Nonaffiliated | i 444.3 | i 392.8 | ||||||
Change
in Advances from Affiliates, Net | ( i 96.5 | ) | i 155.1 | |||||
Retirement
of Long-term Debt – Nonaffiliated | ( i 48.0 | ) | ( i 397.0 | ) | ||||
Principal
Payments for Finance Lease Obligations | ( i 2.6 | ) | ( i 2.9 | ) | ||||
Dividends
Paid on Common Stock | ( i 85.0 | ) | ( i 337.5 | ) | ||||
Other
Financing Activities | i 1.1 | i 0.7 | ||||||
Net
Cash Flows from (Used for) Financing Activities | i 213.3 | ( i 188.8 | ) | |||||
Net
Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Funding | ( i 27.8 | ) | ( i 11.0 | ) | ||||
Cash,
Cash Equivalents and Restricted Cash for Securitized Funding at Beginning of Period | i 32.5 | i 29.7 | ||||||
Cash,
Cash Equivalents and Restricted Cash for Securitized Funding at End of Period | $ | i 4.7 | $ | i 18.7 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 61.3 | $ | i 67.3 | ||||
Net
Cash Paid for Income Taxes | i 25.7 | i 54.1 | ||||||
Noncash
Acquisitions Under Finance Leases | i 8.6 | i 3.0 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 99.9 | i 66.0 | ||||||
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 2,172 | 2,005 | 4,981 | 5,133 | |||||||
Commercial | 1,497 | 1,433 | 3,818 | 3,864 | |||||||
Industrial | 1,642 | 1,604 | 4,665 | 4,559 | |||||||
Miscellaneous | 378 | 362 | 950 | 973 | |||||||
Total
Retail (a) | 5,689 | 5,404 | 14,414 | 14,529 | |||||||
Wholesale | 224 | 182 | 617 | 544 | |||||||
Total
KWhs | 5,913 | 5,586 | 15,031 | 15,073 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Actual – Heating (a) | — | — | 1,199 | 1,161 | |||||||
Normal – Heating (b) | 1 | 1 | 1,077 | 1,082 | |||||||
Actual
– Cooling (c) | 1,593 | 1,433 | 2,206 | 2,352 | |||||||
Normal – Cooling (b) | 1,397 | 1,396 | 2,072 | 2,063 | |||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Cooling degree days are calculated on a 65 degree temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Net Income | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 60.4 | ||
Changes
in Gross Margin: | ||||
Retail Margins (a) | 22.0 | |||
Margins from Off-system Sales | 0.8 | |||
Transmission Revenues | (3.7 | ) | ||
Total
Change in Gross Margin | 19.1 | |||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 19.5 | |||
Depreciation
and Amortization | 3.2 | |||
Taxes Other Than Income Taxes | (0.3 | ) | ||
Other Income (Expense) | 1.4 | |||
Interest Expense | 0.3 | |||
Total
Change in Expenses and Other | 24.1 | |||
Income Tax Expense | (3.3 | ) | ||
Third
Quarter of 2019 | $ | 100.3 | ||
(a) | Includes firm wholesale sales to municipals and cooperatives. |
• | Retail Margins increased $22 million primarily due to the following: |
• | A $14 million increase due to new base rates implemented in April 2019. |
• | A
$9 million increase in weather-related usage due to an 11% increase in cooling degree days. |
• | A $5 million increase in weather-normalized margins. |
• | A $7 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense below. |
• | Transmission
Revenues decreased $4 million primarily due to a decrease in SPP Base Plan Funding revenues. |
• | Other Operation and Maintenance expenses decreased $20 million primarily due the following: |
• | A
$9 million decrease in transmission expenses primarily due to decreased SPP transmission services. |
• | A $5 million decrease in Energy Efficiency program costs due to a change in amortizations of costs approved by the OCC. This decrease was offset in Retail Margins above. |
• | A $3 million decrease due to Wind Catcher Project expenses incurred in 2018. |
• | Depreciation
and Amortization expenses decreased $3 million primarily due to the refund of Excess ADIT. |
• | Income Tax Expense increased $3 million primarily due to an increase in pretax book income partially offset by an increase in amortization of Excess ADIT. The amortization of Excess ADIT was partially offset in Gross Margin above. |
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Net Income | ||||
(in millions) | ||||
Nine
Months Ended September 30, 2018 | $ | 89.8 | ||
Changes in Gross Margin: | ||||
Retail
Margins (a) | 2.2 | |||
Margin from Off-system Sales | 0.9 | |||
Transmission Revenues | (5.6 | ) | ||
Other Revenues | 1.8 | |||
Total
Change in Gross Margin | (0.7 | ) | ||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 63.9 | |||
Depreciation
and Amortization | (4.9 | ) | ||
Taxes Other Than Income Taxes | (0.4 | ) | ||
Other Income (Expense) | 2.4 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.2 | ) | ||
Interest
Expense | (2.9 | ) | ||
Total Change in Expenses and Other | 57.9 | |||
Income Tax Expense | 1.4 | |||
Nine
Months Ended September 30, 2019 | $ | 148.4 | ||
(a) | Includes firm wholesale sales to municipals and cooperatives. |
• | Retail Margins increased $2 million primarily due to the following: |
• | A $35 million increase due to new base rates implemented in April 2019 and March 2018. |
• | A
$13 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense below. |
• | An $11 million decrease in weather-related usage due to a 6% decrease in cooling degree days. |
• | A $10 million decrease in weather-normalized margins. |
• | Transmission
Revenues decreased $6 million primarily due to a decrease in SPP Base Plan Funding revenues. |
• | Other Operation and Maintenance expenses decreased $64 million primarily due to the following: |
• | A
$31 million decrease in transmission expenses primarily due to decreased SPP transmission services. |
• | A $17 million decrease in Energy Efficiency program costs due to a change in amortizations of costs approved by the OCC. This decrease was offset in Retail Margins above. |
• | A $12 million decrease due to Wind Catcher Project expenses incurred in 2018. |
• | Depreciation
and Amortization expenses increased $5 million primarily due to the following: |
• | Income Tax Expense decreased $1 million primarily due
to an increase in amortization of Excess ADIT partially offset by an increase in pretax book income. This decrease was partially offset in Gross Margin above. |
Three Months Ended | Nine
Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Electric
Generation, Transmission and Distribution | $ | i 490.5 | $ | i 479.1 | $ | i 1,164.3 | $ | i 1,209.5 | ||||||||
Sales
to AEP Affiliates | i 1.3 | i 1.1 | i 5.0 | i 3.7 | ||||||||||||
Other
Revenues | i 1.2 | i 1.2 | i 4.6 | i 3.3 | ||||||||||||
TOTAL
REVENUES | i 493.0 | i 481.4 | i 1,173.9 | i 1,216.5 | ||||||||||||
EXPENSES | ||||||||||||||||
Fuel
and Other Consumables Used for Electric Generation | i 98.4 | i 104.4 | i 181.2 | i 211.5 | ||||||||||||
Purchased
Electricity for Resale | i 115.3 | i 116.8 | i 340.7 | i 352.3 | ||||||||||||
Other
Operation | i 87.6 | i 106.3 | i 226.0 | i 286.8 | ||||||||||||
Maintenance | i 21.5 | i 22.3 | i 70.1 | i 73.2 | ||||||||||||
Depreciation
and Amortization | i 39.1 | i 42.3 | i 125.4 | i 120.5 | ||||||||||||
Taxes
Other Than Income Taxes | i 11.1 | i 10.8 | i 33.0 | i 32.6 | ||||||||||||
TOTAL
EXPENSES | i 373.0 | i 402.9 | i 976.4 | i 1,076.9 | ||||||||||||
OPERATING
INCOME | i 120.0 | i 78.5 | i 197.5 | i 139.6 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Other Income (Expense) | i 1.2 | ( i 0.2 | ) | i 2.1 | ( i 0.3 | ) | ||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 2.1 | i 2.1 | i 6.3 | i 6.5 | ||||||||||||
Interest
Expense | ( i 16.1 | ) | ( i 16.4 | ) | ( i 50.3 | ) | ( i 47.4 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE | i 107.2 | i 64.0 | i 155.6 | i 98.4 | ||||||||||||
Income
Tax Expense | i 6.9 | i 3.6 | i 7.2 | i 8.6 | ||||||||||||
NET
INCOME | $ | i 100.3 | $ | i 60.4 | $ | i 148.4 | $ | i 89.8 | ||||||||
The
common stock of PSO is wholly-owned by Parent. | ||||
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net
Income | $ | i 100.3 | $ | i 60.4 | $ | i 148.4 | $ | i 89.8 | ||||||||
OTHER
COMPREHENSIVE LOSS, NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of Tax of
$0 and $0 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.2) and $(0.2) for the Nine Months Ended September 30, 2019 and 2018, Respectively | ( i 0.2 | ) | ( i 0.2 | ) | ( i 0.7 | ) | ( i 0.7 | ) | ||||||||
TOTAL
COMPREHENSIVE INCOME | $ | i 100.1 | $ | i 60.2 | $ | i 147.7 | $ | i 89.1 | ||||||||
Common Stock | Paid-in
Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017 | $ | i 157.2 | $ | i 364.0 | $ | i 691.5 | $ | i 2.6 | $ | i 1,215.3 | ||||||||||
Common
Stock Dividends | ( i 12.5 | ) | ( i 12.5 | ) | ||||||||||||||||
ASU
2018-02 Adoption | i 0.5 | i 0.5 | ||||||||||||||||||
Net
Loss | ( i 7.2 | ) | ( i 7.2 | ) | ||||||||||||||||
Other
Comprehensive Loss | ( i 0.2 | ) | ( i 0.2 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018 | i 157.2 | i 364.0 | i 671.8 | i 2.9 | i 1,195.9 | |||||||||||||||
Common
Stock Dividends | ( i 12.5 | ) | ( i 12.5 | ) | ||||||||||||||||
Net
Income | i 36.6 | i 36.6 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.3 | ) | ( i 0.3 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018 | i 157.2 | i 364.0 | i 695.9 | i 2.6 | i 1,219.7 | |||||||||||||||
Common
Stock Dividends | ( i 12.5 | ) | ( i 12.5 | ) | ||||||||||||||||
Net
Income | i 60.4 | i 60.4 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.2 | ) | ( i 0.2 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018 | $ | i 157.2 | $ | i 364.0 | $ | i 743.8 | $ | i 2.4 | $ | i 1,267.4 | ||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018 | $ | i 157.2 | $ | i 364.0 | $ | i 724.7 | $ | i 2.1 | $ | i 1,248.0 | ||||||||||
Common
Stock Dividends | ( i 11.3 | ) | ( i 11.3 | ) | ||||||||||||||||
Net
Income | i 6.2 | i 6.2 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.2 | ) | ( i 0.2 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019 | i 157.2 | i 364.0 | i 719.6 | i 1.9 | i 1,242.7 | |||||||||||||||
Net
Income | i 41.9 | i 41.9 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.3 | ) | ( i 0.3 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019 | i 157.2 | i 364.0 | i 761.5 | i 1.6 | i 1,284.3 | |||||||||||||||
Net
Income | i 100.3 | i 100.3 | ||||||||||||||||||
Other
Comprehensive Loss | ( i 0.2 | ) | ( i 0.2 | ) | ||||||||||||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019 | $ | i 157.2 | $ | i 364.0 | $ | i 861.8 | $ | i 1.4 | $ | i 1,384.4 | ||||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents | $ | i 2.9 | $ | i 2.0 | ||||
Advances
to Affiliates | i 95.1 | i — | ||||||
Accounts
Receivable: | ||||||||
Customers | i 25.2 | i 32.5 | ||||||
Affiliated
Companies | i 27.3 | i 26.2 | ||||||
Miscellaneous | i 4.0 | i 5.7 | ||||||
Allowance
for Uncollectible Accounts | ( i 0.4 | ) | ( i 0.1 | ) | ||||
Total
Accounts Receivable | i 56.1 | i 64.3 | ||||||
Fuel | i 12.8 | i 12.3 | ||||||
Materials
and Supplies | i 46.2 | i 44.8 | ||||||
Risk
Management Assets | i 21.7 | i 10.4 | ||||||
Accrued
Tax Benefits | i 17.0 | i 14.7 | ||||||
Prepayments
and Other Current Assets | i 11.5 | i 9.4 | ||||||
TOTAL
CURRENT ASSETS | i 263.3 | i 157.9 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Generation | i 1,569.9 | i 1,577.0 | ||||||
Transmission | i 928.4 | i 892.3 | ||||||
Distribution | i 2,650.1 | i 2,572.8 | ||||||
Other
Property, Plant and Equipment | i 319.6 | i 303.5 | ||||||
Construction
Work in Progress | i 128.8 | i 94.0 | ||||||
Total
Property, Plant and Equipment | i 5,596.8 | i 5,439.6 | ||||||
Accumulated
Depreciation and Amortization | i 1,558.5 | i 1,472.9 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 4,038.3 | i 3,966.7 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 380.7 | i 369.0 | ||||||
Employee
Benefits and Pension Assets | i 32.6 | i 31.7 | ||||||
Operating
Lease Assets | i 37.1 | i — | ||||||
Deferred
Charges and Other Noncurrent Assets | i 17.2 | i 7.1 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 467.6 | i 407.8 | ||||||
TOTAL
ASSETS | $ | i 4,769.2 | $ | i 4,532.4 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
(in
millions) | ||||||||
CURRENT LIABILITIES | ||||||||
Advances from Affiliates | $ | i — | $ | i 105.5 | ||||
Accounts
Payable: | ||||||||
General | i 128.6 | i 126.9 | ||||||
Affiliated
Companies | i 38.6 | i 47.1 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated | i 138.2 | i 375.5 | ||||||
Risk
Management Liabilities | i 0.3 | i 1.0 | ||||||
Customer
Deposits | i 59.0 | i 58.6 | ||||||
Accrued
Taxes | i 43.7 | i 22.4 | ||||||
Obligations
Under Operating Leases | i 6.0 | i — | ||||||
Regulatory
Liability for Over-Recovered Fuel Costs | i 69.9 | i 20.1 | ||||||
Other
Current Liabilities | i 67.7 | i 64.5 | ||||||
TOTAL
CURRENT LIABILITIES | i 552.0 | i 821.6 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated | i 1,248.2 | i 911.5 | ||||||
Deferred
Income Taxes | i 617.5 | i 607.8 | ||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 858.9 | i 864.7 | ||||||
Asset
Retirement Obligations | i 50.9 | i 46.3 | ||||||
Obligations
Under Operating Leases | i 31.2 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 26.1 | i 32.5 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 2,832.8 | i 2,462.8 | ||||||
TOTAL
LIABILITIES | i 3,384.8 | i 3,284.4 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
COMMON
SHAREHOLDER’S EQUITY | ||||||||
Common Stock – Par Value – $15 Per Share: | ||||||||
Authorized – 11,000,000 Shares | ||||||||
Issued
– 10,482,000 Shares | ||||||||
Outstanding – 9,013,000 Shares | i 157.2 | i 157.2 | ||||||
Paid-in
Capital | i 364.0 | i 364.0 | ||||||
Retained
Earnings | i 861.8 | i 724.7 | ||||||
Accumulated
Other Comprehensive Income (Loss) | i 1.4 | i 2.1 | ||||||
TOTAL
COMMON SHAREHOLDER’S EQUITY | i 1,384.4 | i 1,248.0 | ||||||
TOTAL
LIABILITIES AND COMMON SHAREHOLDER’S EQUITY | $ | i 4,769.2 | $ | i 4,532.4 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 148.4 | $ | i 89.8 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 125.4 | i 120.5 | ||||||
Deferred
Income Taxes | ( i 9.7 | ) | ( i 13.4 | ) | ||||
Allowance
for Equity Funds Used During Construction | ( i 1.5 | ) | i 0.3 | |||||
Mark-to-Market
of Risk Management Contracts | ( i 12.0 | ) | ( i 11.5 | ) | ||||
Property
Taxes | ( i 9.6 | ) | ( i 9.6 | ) | ||||
Deferred
Fuel Over/Under-Recovery, Net | i 49.8 | i 73.3 | ||||||
Change
in Other Noncurrent Assets | i 4.6 | i 6.9 | ||||||
Change
in Other Noncurrent Liabilities | ( i 0.2 | ) | i 14.6 | |||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | i 9.1 | ( i 3.4 | ) | |||||
Fuel,
Materials and Supplies | ( i 1.9 | ) | ( i 1.5 | ) | ||||
Accounts
Payable | ( i 5.8 | ) | i 6.9 | |||||
Accrued
Taxes, Net | i 19.0 | i 38.4 | ||||||
Other
Current Assets | ( i 2.4 | ) | i 0.3 | |||||
Other
Current Liabilities | i 1.1 | i 15.1 | ||||||
Net
Cash Flows from Operating Activities | i 314.3 | i 326.7 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 198.7 | ) | ( i 162.8 | ) | ||||
Change
in Advances to Affiliates, Net | ( i 95.1 | ) | i — | |||||
Other
Investing Activities | i 2.1 | i 3.9 | ||||||
Net
Cash Flows Used for Investing Activities | ( i 291.7 | ) | ( i 158.9 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Issuance of Long-term Debt – Nonaffiliated | i 349.8 | i — | ||||||
Change
in Advances from Affiliates, Net | ( i 105.5 | ) | ( i 127.6 | ) | ||||
Retirement
of Long-term Debt – Nonaffiliated | ( i 250.4 | ) | ( i 0.3 | ) | ||||
Make
Whole Premium on Extinguishment of Long-term Debt | ( i 3.0 | ) | i — | |||||
Principal
Payments for Finance Lease Obligations | ( i 2.2 | ) | ( i 2.5 | ) | ||||
Dividends
Paid on Common Stock | ( i 11.3 | ) | ( i 37.5 | ) | ||||
Other
Financing Activities | i 0.9 | i 0.4 | ||||||
Net
Cash Flows Used for Financing Activities | ( i 21.7 | ) | ( i 167.5 | ) | ||||
Net
Increase in Cash and Cash Equivalents | i 0.9 | i 0.3 | ||||||
Cash
and Cash Equivalents at Beginning of Period | i 2.0 | i 1.6 | ||||||
Cash
and Cash Equivalents at End of Period | $ | i 2.9 | $ | i 1.9 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 46.5 | $ | i 42.0 | ||||
Net
Cash Paid for Income Taxes | i 16.0 | i 1.6 | ||||||
Noncash
Acquisitions Under Finance Leases | i 3.4 | i 2.3 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 31.5 | i 24.3 | ||||||
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
millions of KWhs) | |||||||||||
Retail: | |||||||||||
Residential | 2,071 | 1,992 | 4,896 | 5,156 | |||||||
Commercial | 1,746 | 1,675 | 4,430 | 4,548 | |||||||
Industrial | 1,414 | 1,366 | 4,020 | 4,033 | |||||||
Miscellaneous | 19 | 19 | 59 | 59 | |||||||
Total
Retail (a) | 5,250 | 5,052 | 13,405 | 13,796 | |||||||
Wholesale | 1,831 | 1,881 | 5,317 | 5,352 | |||||||
Total
KWhs | 7,081 | 6,933 | 18,722 | 19,148 | |||||||
(a) | 2018
KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
Three
Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(in
degree days) | |||||||||||
Actual – Heating (a) | — | — | 732 | 784 | |||||||
Normal – Heating (b) | 1 | 1 | 725 | 733 | |||||||
Actual
– Cooling (c) | 1,552 | 1,453 | 2,263 | 2,408 | |||||||
Normal – Cooling (b) | 1,408 | 1,408 | 2,187 | 2,179 | |||||||
(a) | Heating
degree days are calculated on a 55 degree temperature base. |
(b) | Normal Heating/Cooling represents the thirty-year average of degree days. |
(c) | Cooling degree days are calculated on a 65 degree temperature base. |
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019 | ||||
Earnings Attributable to SWEPCo Common Shareholder | ||||
(in millions) | ||||
Third Quarter of 2018 | $ | 88.2 | ||
Changes
in Gross Margin: | ||||
Retail Margins (a) | 10.7 | |||
Off-system Sales | (0.2 | ) | ||
Transmission Revenues | (4.8 | ) | ||
Other
Revenues | (0.4 | ) | ||
Total Change in Gross Margin | 5.3 | |||
Changes in Expenses and Other: | ||||
Other
Operation and Maintenance | 4.9 | |||
Depreciation and Amortization | (3.3 | ) | ||
Taxes Other Than Income Taxes | 0.7 | |||
Interest Income | (0.5 | ) | ||
Allowance
for Equity Funds Used During Construction | 1.0 | |||
Non-Service Cost Components of Net Periodic Benefit Cost | (0.2 | ) | ||
Interest Expense | 3.5 | |||
Total
Change in Expenses and Other | 6.1 | |||
Income Tax Expense (Benefit) | 10.3 | |||
Net Income Attributable to Noncontrolling Interest | 0.6 | |||
Third
Quarter of 2019 | $ | 110.5 | ||
(a) | Includes firm wholesale sales to municipals and cooperatives. |
• | Retail Margins increased $11 million primarily due to the following: |
• | A $6 million increase in weather-normalized margins. |
• | A $5 million
increase in weather-related usage primarily due to a 7% increase in cooling degree days. |
• | Transmission Revenues decreased $5 million primarily due to a decrease in SPP Base Plan Funding revenues and a decrease in nonaffiliated transmission services. |
• | Other
Operation and Maintenance expenses decreased $5 million primarily due to Wind Catcher Project expenses incurred in 2018. |
• | Depreciation and Amortization expenses increased $3 million primarily due to a higher depreciable base. |
• | Interest Expense decreased
$4 million primarily due to lower interest rates on outstanding long-term debt. |
• | Income Tax Expense (Benefit) decreased $10 million primarily due to an increase in amortization of Excess ADIT not subject to normalization requirements. This decrease was partially offset in Gross Margin above. |
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019 | ||||
Earnings Attributable to SWEPCo Common Shareholder | ||||
(in millions) | ||||
Nine
Months Ended September 30, 2018 | $ | 137.6 | ||
Changes in Gross Margin: | ||||
Retail
Margins (a) | (18.3 | ) | ||
Off-system Sales | (0.1 | ) | ||
Transmission Revenues | (35.6 | ) | ||
Other Revenues | (0.3 | ) | ||
Total
Change in Gross Margin | (54.3 | ) | ||
Changes in Expenses and Other: | ||||
Other Operation and Maintenance | 47.7 | |||
Depreciation
and Amortization | (11.2 | ) | ||
Taxes Other Than Income Taxes | 0.4 | |||
Interest Income | (1.5 | ) | ||
Allowance for Equity Funds Used During Construction | 0.7 | |||
Non-Service
Cost Components of Net Periodic Benefit Cost | (0.5 | ) | ||
Interest Expense | 6.4 | |||
Total Change in Expenses and Other | 42.0 | |||
Income
Tax Expense (Benefit) | 17.9 | |||
Equity Earnings of Unconsolidated Subsidiary | 0.3 | |||
Net Income Attributable to Noncontrolling Interest | 1.0 | |||
Nine
Months Ended September 30, 2019 | $ | 144.5 | ||
(a) | Includes firm wholesale sales to municipals and cooperatives. |
• | Retail Margins decreased $18 million primarily due to the following: |
• | A $14 million decrease in weather-related usage primarily due to a 6% decrease in cooling degree days and a 7% decrease in heating degree days. |
• | A
$10 million decrease in weather-normalized margins. |
• | A $7 million increase primarily due to rider and base rate revenue increases in Louisiana. This increase was offset in other expense items below. |
• | Transmission Revenues decreased $36 million primarily due to the following: |
• | A
$40 million decrease in the annual SPP formula rate true-up. |
• | A $7 million decrease primarily due to a reduction in SPP Base Plan Funding revenues. |
• | An $11 million increase due to a provision for refund recorded in 2018 related to certain transmission assets that management believes should not have been included in the SPP formula rate. |
• | Other Operation and Maintenance expenses decreased $48 million primarily due to the following: |
• | A $28 million decrease due to Wind Catcher Project expenses incurred in 2018. |
• | A
$24 million decrease in affiliated SPP transmission expenses primarily due to the annual formula rate true-up. |
• | A $7 million increase in overhead line expenses primarily related to storm restoration. |
• | Depreciation and Amortization expenses increased $11 million primarily due to higher depreciation rates implemented
in the third quarter of 2018 and a higher depreciable base. |
• | Interest Expense decreased $6 million primarily due to lower interest rates on outstanding long-term debt. |
• | Income Tax Expense (Benefit) decreased $18 million primarily due to an increase in amortization of Excess ADIT
not subject to normalization requirements and a decrease in pretax book income. This decrease was partially offset in Gross Margin above. |
Three Months Ended | Nine
Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
REVENUES | ||||||||||||||||
Electric
Generation, Transmission and Distribution | $ | i 536.5 | $ | i 526.0 | $ | i 1,344.8 | $ | i 1,390.4 | ||||||||
Sales
to AEP Affiliates | i 8.8 | i 8.7 | i 21.6 | i 20.2 | ||||||||||||
Provision
for Refund – Affiliated | ( i 0.1 | ) | i — | ( i 25.3 | ) | i — | ||||||||||
Other
Revenues | i 0.3 | i 0.6 | i 1.0 | i 1.2 | ||||||||||||
TOTAL
REVENUES | i 545.5 | i 535.3 | i 1,342.1 | i 1,411.8 | ||||||||||||
EXPENSES | ||||||||||||||||
Fuel
and Other Consumables Used for Electric Generation | i 148.8 | i 152.1 | i 400.2 | i 393.4 | ||||||||||||
Purchased
Electricity for Resale | i 44.8 | i 36.6 | i 110.5 | i 132.7 | ||||||||||||
Other
Operation | i 91.9 | i 99.1 | i 242.4 | i 292.0 | ||||||||||||
Maintenance | i 35.9 | i 33.6 | i 104.1 | i 102.2 | ||||||||||||
Depreciation
and Amortization | i 63.2 | i 59.9 | i 187.1 | i 175.9 | ||||||||||||
Taxes
Other Than Income Taxes | i 26.2 | i 26.9 | i 76.0 | i 76.4 | ||||||||||||
TOTAL
EXPENSES | i 410.8 | i 408.2 | i 1,120.3 | i 1,172.6 | ||||||||||||
OPERATING
INCOME | i 134.7 | i 127.1 | i 221.8 | i 239.2 | ||||||||||||
Other
Income (Expense): | ||||||||||||||||
Interest Income | i 0.6 | i 1.1 | i 2.0 | i 3.5 | ||||||||||||
Allowance
for Equity Funds Used During Construction | i 1.6 | i 0.6 | i 4.5 | i 3.8 | ||||||||||||
Non-Service
Cost Components of Net Periodic Benefit Cost | i 2.1 | i 2.3 | i 6.4 | i 6.9 | ||||||||||||
Interest
Expense | ( i 29.2 | ) | ( i 32.7 | ) | ( i 89.4 | ) | ( i 95.8 | ) | ||||||||
INCOME
BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY EARNINGS | i 109.8 | i 98.4 | i 145.3 | i 157.6 | ||||||||||||
Income
Tax Expense (Benefit) | ( i 0.7 | ) | i 9.6 | i — | i 17.9 | |||||||||||
Equity
Earnings of Unconsolidated Subsidiary | i 0.8 | i 0.8 | i 2.3 | i 2.0 | ||||||||||||
NET
INCOME | i 111.3 | i 89.6 | i 147.6 | i 141.7 | ||||||||||||
Net
Income Attributable to Noncontrolling Interest | i 0.8 | i 1.4 | i 3.1 | i 4.1 | ||||||||||||
EARNINGS
ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER | $ | i 110.5 | $ | i 88.2 | $ | i 144.5 | $ | i 137.6 | ||||||||
The
common stock of SWEPCo is wholly-owned by Parent. | ||||
Three
Months Ended | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net
Income | $ | i 111.3 | $ | i 89.6 | $ | i 147.6 | $ | i 141.7 | ||||||||
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAXES | ||||||||||||||||
Cash Flow Hedges, Net of
Tax of $0.1 and $0.8 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0.3 and $1 for the Nine Months Ended September 30, 2019 and 2018, Respectively | i 0.3 | i 2.7 | i 1.1 | i 3.6 | ||||||||||||
Amortization
of Pension and OPEB Deferred Costs, Net of Tax of $0 and $(0.1) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.2) and $(0.3) for the Nine Months Ended September 30, 2019 and 2018, Respectively | ( i 0.3 | ) | ( i 0.3 | ) | ( i 0.9 | ) | ( i 1.0 | ) | ||||||||
TOTAL
OTHER COMPREHENSIVE INCOME | i — | i 2.4 | i 0.2 | i 2.6 | ||||||||||||
TOTAL
COMPREHENSIVE INCOME | i 111.3 | i 92.0 | i 147.8 | i 144.3 | ||||||||||||
Total
Comprehensive Income Attributable to Noncontrolling Interest | i 0.8 | i 1.4 | i 3.1 | i 4.1 | ||||||||||||
TOTAL
COMPREHENSIVE INCOME ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER | $ | i 110.5 | $ | i 90.6 | $ | i 144.7 | $ | i 140.2 | ||||||||
SWEPCo Common Shareholder | |||||||||||||||||||||||
Common
Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | ||||||||||||||||||
TOTAL EQUITY – DECEMBER 31, 2017 | $ | i 135.7 | $ | i 676.6 | $ | i 1,426.6 | $ | ( i 4.0 | ) | $ | ( i 0.4 | ) | $ | i 2,234.5 | |||||||||
Common
Stock Dividends | ( i 20.0 | ) | ( i 20.0 | ) | |||||||||||||||||||
Common
Stock Dividends – Nonaffiliated | ( i 0.8 | ) | ( i 0.8 | ) | |||||||||||||||||||
ASU
2018-02 Adoption | ( i 0.4 | ) | ( i 0.9 | ) | ( i 1.3 | ) | |||||||||||||||||
Net
Income | i 11.8 | i 1.6 | i 13.4 | ||||||||||||||||||||
Other
Comprehensive Income | i 0.1 | i 0.1 | |||||||||||||||||||||
TOTAL
EQUITY – MARCH 31, 2018 | i 135.7 | i 676.6 | i 1,418.0 | ( i 4.8 | ) | i 0.4 | i 2,225.9 | ||||||||||||||||
Common
Stock Dividends | ( i 20.0 | ) | ( i 20.0 | ) | |||||||||||||||||||
Common
Stock Dividends – Nonaffiliated | ( i 1.0 | ) | ( i 1.0 | ) | |||||||||||||||||||
Net
Income | i 37.6 | i 1.1 | i 38.7 | ||||||||||||||||||||
Other
Comprehensive Income | i 0.1 | i 0.1 | |||||||||||||||||||||
TOTAL
EQUITY – JUNE 30, 2018 | i 135.7 | i 676.6 | i 1,435.6 | ( i 4.7 | ) | i 0.5 | i 2,243.7 | ||||||||||||||||
Common
Stock Dividends | ( i 20.0 | ) | ( i 20.0 | ) | |||||||||||||||||||
Common
Stock Dividends – Nonaffiliated | ( i 1.4 | ) | ( i 1.4 | ) | |||||||||||||||||||
Net
Income | i 88.2 | i 1.4 | i 89.6 | ||||||||||||||||||||
Other
Comprehensive Income | i 2.4 | i 2.4 | |||||||||||||||||||||
TOTAL
EQUITY – SEPTEMBER 30, 2018 | $ | i 135.7 | $ | i 676.6 | $ | i 1,503.8 | $ | ( i 2.3 | ) | $ | i 0.5 | $ | i 2,314.3 | ||||||||||
TOTAL
EQUITY – DECEMBER 31, 2018 | $ | i 135.7 | $ | i 676.6 | $ | i 1,508.4 | $ | ( i 5.4 | ) | $ | i 0.3 | $ | i 2,315.6 | ||||||||||
Common
Stock Dividends | ( i 18.7 | ) | ( i 18.7 | ) | |||||||||||||||||||
Common
Stock Dividends – Nonaffiliated | ( i 1.1 | ) | ( i 1.1 | ) | |||||||||||||||||||
Net
Income | i 27.8 | i 1.2 | i 29.0 | ||||||||||||||||||||
Other
Comprehensive Income | i 0.1 | i 0.1 | |||||||||||||||||||||
TOTAL
EQUITY – MARCH 31, 2019 | i 135.7 | i 676.6 | i 1,517.5 | ( i 5.3 | ) | i 0.4 | i 2,324.9 | ||||||||||||||||
Common
Stock Dividends | ( i 18.8 | ) | ( i 18.8 | ) | |||||||||||||||||||
Common
Stock Dividends – Nonaffiliated | ( i 1.1 | ) | ( i 1.1 | ) | |||||||||||||||||||
Net
Income | i 6.2 | i 1.1 | i 7.3 | ||||||||||||||||||||
Other
Comprehensive Income | i 0.1 | i 0.1 | |||||||||||||||||||||
TOTAL
EQUITY – JUNE 30, 2019 | i 135.7 | i 676.6 | i 1,504.9 | ( i 5.2 | ) | i 0.4 | i 2,312.4 | ||||||||||||||||
Common
Stock Dividends – Nonaffiliated | ( i 1.1 | ) | ( i 1.1 | ) | |||||||||||||||||||
Net
Income | i 110.5 | i 0.8 | i 111.3 | ||||||||||||||||||||
TOTAL
EQUITY – SEPTEMBER 30, 2019 | $ | i 135.7 | $ | i 676.6 | $ | i 1,615.4 | $ | ( i 5.2 | ) | $ | i 0.1 | $ | i 2,422.6 | ||||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
CURRENT
ASSETS | ||||||||
Cash and Cash Equivalents (September 30, 2019 and December 31, 2018 Amounts Include $18.2 and $22, Respectively, Related to Sabine) | $ | i 21.4 | $ | i 24.5 | ||||
Advances
to Affiliates | i 8.5 | i 83.4 | ||||||
Accounts
Receivable: | ||||||||
Customers | i 20.6 | i 24.5 | ||||||
Affiliated
Companies | i 56.8 | i 28.8 | ||||||
Miscellaneous | i 16.6 | i 20.2 | ||||||
Allowance
for Uncollectible Accounts | ( i 1.4 | ) | ( i 0.7 | ) | ||||
Total
Accounts Receivable | i 92.6 | i 72.8 | ||||||
Fuel
(September 30, 2019 and December 31, 2018 Amounts Include $51.6 and $35.7, Respectively, Related to Sabine) | i 135.9 | i 120.5 | ||||||
Materials
and Supplies | i 69.8 | i 67.5 | ||||||
Risk
Management Assets | i 9.4 | i 4.8 | ||||||
Regulatory
Asset for Under-Recovered Fuel Costs | i 11.1 | i 18.8 | ||||||
Prepayments
and Other Current Assets | i 24.4 | i 22.2 | ||||||
TOTAL
CURRENT ASSETS | i 373.1 | i 414.5 | ||||||
PROPERTY,
PLANT AND EQUIPMENT | ||||||||
Electric: | ||||||||
Generation | i 4,676.1 | i 4,672.6 | ||||||
Transmission | i 1,995.9 | i 1,866.9 | ||||||
Distribution | i 2,241.1 | i 2,178.6 | ||||||
Other
Property, Plant and Equipment (September 30, 2019 and December 31, 2018 Amounts Include $210.3 and $276.9, Respectively, Related to Sabine) | i 703.2 | i 762.7 | ||||||
Construction
Work in Progress | i 235.0 | i 199.3 | ||||||
Total
Property, Plant and Equipment | i 9,851.3 | i 9,680.1 | ||||||
Accumulated
Depreciation and Amortization (September 30, 2019 and December 31, 2018 Amounts Include $105.7 and $174.6, Respectively, Related to Sabine) | i 2,848.2 | i 2,808.3 | ||||||
TOTAL
PROPERTY, PLANT AND EQUIPMENT – NET | i 7,003.1 | i 6,871.8 | ||||||
OTHER
NONCURRENT ASSETS | ||||||||
Regulatory Assets | i 223.6 | i 230.8 | ||||||
Deferred
Charges and Other Noncurrent Assets | i 167.2 | i 111.2 | ||||||
TOTAL
OTHER NONCURRENT ASSETS | i 390.8 | i 342.0 | ||||||
TOTAL
ASSETS | $ | i 7,767.0 | $ | i 7,628.3 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
(in
millions) | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts Payable: | ||||||||
General | $ | i 127.6 | $ | i 129.1 | ||||
Affiliated
Companies | i 62.4 | i 64.2 | ||||||
Long-term
Debt Due Within One Year – Nonaffiliated | i 121.2 | i 59.7 | ||||||
Risk
Management Liabilities | i 1.7 | i 0.4 | ||||||
Customer
Deposits | i 65.0 | i 64.5 | ||||||
Accrued
Taxes | i 94.7 | i 42.8 | ||||||
Accrued
Interest | i 22.9 | i 34.7 | ||||||
Obligations
Under Operating Leases | i 5.9 | i — | ||||||
Regulatory
Liability for Over-Recovered Fuel Costs | i 17.4 | i 11.1 | ||||||
Other
Current Liabilities | i 108.0 | i 106.4 | ||||||
TOTAL
CURRENT LIABILITIES | i 626.8 | i 512.9 | ||||||
NONCURRENT
LIABILITIES | ||||||||
Long-term Debt – Nonaffiliated | i 2,535.7 | i 2,653.7 | ||||||
Long-term
Risk Management Liabilities | i 3.0 | i 2.2 | ||||||
Deferred
Income Taxes | i 919.1 | i 902.8 | ||||||
Regulatory
Liabilities and Deferred Investment Tax Credits | i 918.1 | i 923.0 | ||||||
Asset
Retirement Obligations | i 200.9 | i 191.3 | ||||||
Obligations
Under Operating Leases | i 32.5 | i — | ||||||
Deferred
Credits and Other Noncurrent Liabilities | i 108.3 | i 126.8 | ||||||
TOTAL
NONCURRENT LIABILITIES | i 4,717.6 | i 4,799.8 | ||||||
TOTAL
LIABILITIES | i 5,344.4 | i 5,312.7 | ||||||
Rate
Matters (Note 4) | i | i | ||||||
Commitments
and Contingencies (Note 5) | i | i | ||||||
EQUITY | ||||||||
Common
Stock – Par Value – $18 Per Share: | ||||||||
Authorized – 7,600,000 Shares | ||||||||
Outstanding – 7,536,640 Shares | i 135.7 | i 135.7 | ||||||
Paid-in
Capital | i 676.6 | i 676.6 | ||||||
Retained
Earnings | i 1,615.4 | i 1,508.4 | ||||||
Accumulated
Other Comprehensive Income (Loss) | ( i 5.2 | ) | ( i 5.4 | ) | ||||
TOTAL
COMMON SHAREHOLDER’S EQUITY | i 2,422.5 | i 2,315.3 | ||||||
Noncontrolling
Interest | i 0.1 | i 0.3 | ||||||
TOTAL
EQUITY | i 2,422.6 | i 2,315.6 | ||||||
TOTAL
LIABILITIES AND EQUITY | $ | i 7,767.0 | $ | i 7,628.3 | ||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
OPERATING
ACTIVITIES | ||||||||
Net Income | $ | i 147.6 | $ | i 141.7 | ||||
Adjustments
to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||||||||
Depreciation and Amortization | i 187.1 | i 175.9 | ||||||
Deferred
Income Taxes | ( i 15.9 | ) | i 2.0 | |||||
Allowance
for Equity Funds Used During Construction | ( i 4.5 | ) | ( i 3.8 | ) | ||||
Mark-to-Market
of Risk Management Contracts | ( i 2.5 | ) | i 2.5 | |||||
Property
Taxes | ( i 16.1 | ) | ( i 15.8 | ) | ||||
Deferred
Fuel Over/Under-Recovery, Net | i 14.1 | i 4.4 | ||||||
Change
in Other Noncurrent Assets | i 3.5 | ( i 8.9 | ) | |||||
Change
in Other Noncurrent Liabilities | i 5.8 | i 52.1 | ||||||
Changes
in Certain Components of Working Capital: | ||||||||
Accounts Receivable, Net | ( i 17.2 | ) | i 44.3 | |||||
Fuel,
Materials and Supplies | ( i 17.7 | ) | i 5.0 | |||||
Accounts
Payable | ( i 12.8 | ) | ( i 29.9 | ) | ||||
Accrued
Taxes, Net | i 54.1 | i 38.4 | ||||||
Other
Current Assets | ( i 4.5 | ) | i 3.2 | |||||
Other
Current Liabilities | ( i 13.9 | ) | i 4.2 | |||||
Net
Cash Flows from Operating Activities | i 307.1 | i 415.3 | ||||||
INVESTING
ACTIVITIES | ||||||||
Construction Expenditures | ( i 277.3 | ) | ( i 336.6 | ) | ||||
Change
in Advances to Affiliates, Net | i 74.9 | ( i 516.6 | ) | |||||
Other
Investing Activities | ( i 1.2 | ) | i 1.2 | |||||
Net
Cash Flows Used for Investing Activities | ( i 203.6 | ) | ( i 852.0 | ) | ||||
FINANCING
ACTIVITIES | ||||||||
Issuance of Long-term Debt – Nonaffiliated | i — | i 1,015.4 | ||||||
Change
in Short-term Debt – Nonaffiliated | i — | ( i 2.6 | ) | |||||
Change
in Advances from Affiliates, Net | i — | ( i 118.7 | ) | |||||
Retirement
of Long-term Debt – Nonaffiliated | ( i 58.2 | ) | ( i 385.3 | ) | ||||
Principal
Payments for Finance Lease Obligations | ( i 8.1 | ) | ( i 8.5 | ) | ||||
Dividends
Paid on Common Stock | ( i 37.5 | ) | ( i 60.0 | ) | ||||
Dividends
Paid on Common Stock – Nonaffiliated | ( i 3.3 | ) | ( i 3.2 | ) | ||||
Other
Financing Activities | i 0.5 | i 0.5 | ||||||
Net
Cash Flows from (Used for) Financing Activities | ( i 106.6 | ) | i 437.6 | |||||
Net
Increase (Decrease) in Cash and Cash Equivalents | ( i 3.1 | ) | i 0.9 | |||||
Cash
and Cash Equivalents at Beginning of Period | i 24.5 | i 1.6 | ||||||
Cash
and Cash Equivalents at End of Period | $ | i 21.4 | $ | i 2.5 | ||||
SUPPLEMENTARY
INFORMATION | ||||||||
Cash Paid for Interest, Net of Capitalized Amounts | $ | i 95.1 | $ | i 102.5 | ||||
Net
Cash Paid for Income Taxes | i 7.3 | i 12.9 | ||||||
Noncash
Acquisitions Under Finance Leases | i 4.7 | i 3.2 | ||||||
Construction
Expenditures Included in Current Liabilities as of September 30, | i 52.0 | i 37.0 | ||||||
Note | Registrant | Page Number | ||
Significant
Accounting Matters | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
New Accounting Standards | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Comprehensive Income | AEP,
AEP Texas, APCo, I&M, OPCo, PSO, SWEPCo | |||
Rate Matters | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Commitments, Guarantees and Contingencies | AEP, AEP Texas, AEPTCo,
APCo, I&M, OPCo, PSO, SWEPCo | |||
Acquisitions and Impairments | AEP, APCo | |||
Benefit Plans | AEP, AEP Texas, APCo, I&M, OPCo, PSO, SWEPCo | |||
Business
Segments | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Derivatives and Hedging | AEP, AEP Texas, APCo, I&M, OPCo, PSO, SWEPCo | |||
Fair Value Measurements | AEP,
AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Income Taxes | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Leases | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo,
PSO, SWEPCo | |||
Financing Activities | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Variable Interest Entities and Equity Method Investments | AEP | |||
Revenue
from Contracts with Customers | AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo | |||
Three
Months Ended September 30, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(in millions, except per share data) | |||||||||||||||
$/share | $/share | ||||||||||||||
Earnings
Attributable to AEP Common Shareholders | $ | i 733.5 | $ | i 577.6 | |||||||||||
Weighted
Average Number of Basic Shares Outstanding | i 493.8 | $ | i 1.49 | i 493.0 | $ | i 1.17 | |||||||||
Weighted
Average Dilutive Effect of Stock-Based Awards | i 1.7 | ( i 0.01 | ) | i 0.9 | i — | ||||||||||
Weighted
Average Number of Diluted Shares Outstanding | i 495.5 | $ | i 1.48 | i 493.9 | $ | i 1.17 | |||||||||
Nine
Months Ended September 30, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(in millions, except per share data) | |||||||||||||||
$/share | $/share | ||||||||||||||
Earnings
Attributable to AEP Common Shareholders | $ | i 1,767.6 | $ | i 1,560.4 | |||||||||||
Weighted
Average Number of Basic Shares Outstanding | i 493.6 | $ | i 3.58 | i 492.6 | $ | i 3.17 | |||||||||
Weighted
Average Dilutive Effect of Stock-Based Awards | i 1.5 | ( i 0.01 | ) | i 0.9 | ( i 0.01 | ) | |||||||||
Weighted
Average Number of Diluted Shares Outstanding | i 495.1 | $ | i 3.57 | i 493.5 | $ | i 3.16 | |||||||||
AEP | AEP Texas | APCo | OPCo | |||||||||||||
(in millions) | ||||||||||||||||
Cash and Cash Equivalents | $ | i 348.8 | $ | i 0.1 | $ | i 3.5 | $ | i 4.7 | ||||||||
Restricted
Cash | i 141.0 | i 114.3 | i 17.1 | i — | ||||||||||||
Total
Cash, Cash Equivalents and Restricted Cash | $ | i 489.8 | $ | i 114.4 | $ | i 20.6 | $ | i 4.7 | ||||||||
AEP | AEP Texas | APCo | OPCo | |||||||||||||
(in millions) | ||||||||||||||||
Cash and Cash Equivalents | $ | i 234.1 | $ | i 3.1 | $ | i 4.2 | $ | i 4.9 | ||||||||
Restricted
Cash | i 210.0 | i 156.7 | i 25.6 | i 27.6 | ||||||||||||
Total
Cash, Cash Equivalents and Restricted Cash | $ | i 444.1 | $ | i 159.8 | $ | i 29.8 | $ | i 32.5 | ||||||||
Practical Expedient | Description | |
Overall
Expedients (for leases commenced prior to adoption date and must be adopted as a package) | Do not need to reassess whether any expired or existing contracts are/or contain leases, do not need to reassess the lease classification for any expired or existing leases and do not need to reassess initial direct costs for any existing leases. | |
Lease and Non-lease Components (elect by class of underlying asset) | Elect as an accounting policy to not separate non-lease components from lease components and instead account for each lease and associated non-lease component as a single lease component. | |
Short-term
Lease (elect by class of underlying asset) | Elect as an accounting policy to not apply the recognition requirements to short-term leases. | |
Existing and expired land easements not previously accounted for as leases | Elect optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. | |
Cumulative-effect adjustment in the period of adoption | Elect
the optional transition practical expedient to adopt the new lease requirements through a cumulative-effect adjustment on the balance sheet in the period of adoption. | |
Cash
Flow Hedges | Pension | |||||||||||||||
Three Months Ended September 30, 2019 | Commodity | Interest Rate | and OPEB | Total | ||||||||||||
(in
millions) | ||||||||||||||||
Balance in AOCI as of June 30, 2019 | $ | ( i 127.2 | ) | $ | ( i 15.9 | ) | $ | ( i 87.6 | ) | $ | ( i 230.7 | ) | ||||
Change
in Fair Value Recognized in AOCI | i 38.4 | ( i 0.8 | ) | (b) | i — | i 37.6 | ||||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||||||
Generation & Marketing Revenues (a) | ( i 0.1 | ) | i — | i — | ( i 0.1 | ) | ||||||||||
Purchased
Electricity for Resale (a) | i 8.5 | i — | i — | i 8.5 | ||||||||||||
Amortization
of Prior Service Cost (Credit) | i — | i — | ( i 4.8 | ) | ( i 4.8 | ) | ||||||||||
Amortization
of Actuarial (Gains) Losses | i — | i — | i 3.0 | i 3.0 | ||||||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 8.4 | i — | ( i 1.8 | ) | i 6.6 | |||||||||||
Income
Tax (Expense) Benefit | i 1.8 | i — | ( i 0.4 | ) | i 1.4 | |||||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 6.6 | i — | ( i 1.4 | ) | i 5.2 | |||||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 45.0 | ( i 0.8 | ) | ( i 1.4 | ) | i 42.8 | ||||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 82.2 | ) | $ | ( i 16.7 | ) | $ | ( i 89.0 | ) | $ | ( i 187.9 | ) | ||||
Cash
Flow Hedges | Pension | |||||||||||||||
Three Months Ended September 30, 2018 | Commodity | Interest Rate | and OPEB | Total | ||||||||||||
(in
millions) | ||||||||||||||||
Balance in AOCI as of June 30, 2018 | $ | ( i 30.4 | ) | $ | ( i 15.3 | ) | $ | ( i 49.1 | ) | $ | ( i 94.8 | ) | ||||
Change
in Fair Value Recognized in AOCI | i 12.2 | i 2.3 | i — | i 14.5 | ||||||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||||||
Generation & Marketing Revenues (a) | ( i 0.1 | ) | i — | i — | ( i 0.1 | ) | ||||||||||
Purchased
Electricity for Resale (a) | ( i 5.8 | ) | i — | i — | ( i 5.8 | ) | ||||||||||
Interest
Expense (a) | i — | i 0.4 | i — | i 0.4 | ||||||||||||
Amortization
of Prior Service Cost (Credit) | i — | i — | ( i 5.0 | ) | ( i 5.0 | ) | ||||||||||
Amortization
of Actuarial (Gains) Losses | i — | i — | i 3.2 | i 3.2 | ||||||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 5.9 | ) | i 0.4 | ( i 1.8 | ) | ( i 7.3 | ) | |||||||||
Income
Tax (Expense) Benefit | ( i 1.3 | ) | i 0.1 | ( i 0.4 | ) | ( i 1.6 | ) | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 4.6 | ) | i 0.3 | ( i 1.4 | ) | ( i 5.7 | ) | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 7.6 | i 2.6 | ( i 1.4 | ) | i 8.8 | |||||||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 22.8 | ) | $ | ( i 12.7 | ) | $ | ( i 50.5 | ) | $ | ( i 86.0 | ) | ||||
Cash
Flow Hedges | Pension | |||||||||||||||
Nine Months Ended September 30, 2019 | Commodity | Interest Rate | and OPEB | Total | ||||||||||||
(in
millions) | ||||||||||||||||
Balance in AOCI as of December 31, 2018 | $ | ( i 23.0 | ) | $ | ( i 12.6 | ) | $ | ( i 84.8 | ) | $ | ( i 120.4 | ) | ||||
Change
in Fair Value Recognized in AOCI | ( i 92.3 | ) | ( i 4.5 | ) | (b) | i — | ( i 96.8 | ) | ||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||||||
Generation & Marketing Revenues (a) | ( i 0.1 | ) | i — | i — | ( i 0.1 | ) | ||||||||||
Purchased
Electricity for Resale (a) | i 42.0 | i — | i — | i 42.0 | ||||||||||||
Interest
Expense (a) | i — | i 0.5 | i — | i 0.5 | ||||||||||||
Amortization
of Prior Service Cost (Credit) | i — | i — | ( i 14.3 | ) | ( i 14.3 | ) | ||||||||||
Amortization
of Actuarial (Gains) Losses | i — | i — | i 9.0 | i 9.0 | ||||||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 41.9 | i 0.5 | ( i 5.3 | ) | i 37.1 | |||||||||||
Income
Tax (Expense) Benefit | i 8.8 | i 0.1 | ( i 1.1 | ) | i 7.8 | |||||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 33.1 | i 0.4 | ( i 4.2 | ) | i 29.3 | |||||||||||
Net
Current Period Other Comprehensive Income (Loss) | ( i 59.2 | ) | ( i 4.1 | ) | ( i 4.2 | ) | ( i 67.5 | ) | ||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 82.2 | ) | $ | ( i 16.7 | ) | $ | ( i 89.0 | ) | $ | ( i 187.9 | ) | ||||
Cash
Flow Hedges | Securities | |||||||||||||||||||
Interest | Available | Pension | ||||||||||||||||||
Nine
Months Ended September 30, 2018 | Commodity | Rate | for Sale | and OPEB | Total | |||||||||||||||
(in
millions) | ||||||||||||||||||||
Balance in AOCI as of December 31, 2017 | $ | ( i 28.4 | ) | $ | ( i 13.0 | ) | $ | i 11.9 | $ | ( i 38.3 | ) | $ | ( i 67.8 | ) | ||||||
Change
in Fair Value Recognized in AOCI | i 30.4 | i 2.3 | i — | i — | i 32.7 | |||||||||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||||||||||
Generation & Marketing Revenues (a) | ( i 0.1 | ) | i — | i — | i — | ( i 0.1 | ) | |||||||||||||
Purchased
Electricity for Resale (a) | ( i 23.6 | ) | i — | i — | i — | ( i 23.6 | ) | |||||||||||||
Interest
Expense (a) | i — | i 0.9 | i — | i — | i 0.9 | |||||||||||||||
Amortization
of Prior Service Cost (Credit) | i — | i — | i — | ( i 14.7 | ) | ( i 14.7 | ) | |||||||||||||
Amortization
of Actuarial (Gains) Losses | i — | i — | i — | i 9.6 | i 9.6 | |||||||||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 23.7 | ) | i 0.9 | i — | ( i 5.1 | ) | ( i 27.9 | ) | ||||||||||||
Income
Tax (Expense) Benefit | ( i 5.0 | ) | i 0.2 | i — | ( i 1.1 | ) | ( i 5.9 | ) | ||||||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 18.7 | ) | i 0.7 | i — | ( i 4.0 | ) | ( i 22.0 | ) | ||||||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 11.7 | i 3.0 | i — | ( i 4.0 | ) | i 10.7 | ||||||||||||||
ASU
2018-02 Adoption | ( i 6.1 | ) | ( i 2.7 | ) | i — | ( i 8.2 | ) | ( i 17.0 | ) | |||||||||||
ASU
2016-01 Adoption | i — | i — | ( i 11.9 | ) | i — | ( i 11.9 | ) | |||||||||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 22.8 | ) | $ | ( i 12.7 | ) | $ | i — | $ | ( i 50.5 | ) | $ | ( i 86.0 | ) | ||||||
Cash Flow Hedge – | Pension | |||||||||||
Three Months Ended September
30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in millions) | ||||||||||||
Balance in AOCI as of June 30, 2019 | $ | ( i 3.9 | ) | $ | ( i 10.6 | ) | $ | ( i 14.5 | ) | |||
Change
in Fair Value Recognized in AOCI | i 0.3 | i — | i 0.3 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Amortization of Prior Service Cost (Credit) | i — | ( i 0.1 | ) | ( i 0.1 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.1 | i 0.1 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i — | i — | i — | |||||||||
Income
Tax (Expense) Benefit | i — | i — | i — | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i — | i — | i — | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.3 | i — | i 0.3 | |||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 3.6 | ) | $ | ( i 10.6 | ) | $ | ( i 14.2 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2018 | $ | ( i 4.9 | ) | $ | ( i 9.8 | ) | $ | ( i 14.7 | ) | |||
Change
in Fair Value Recognized in AOCI | i — | i — | i — | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 0.4 | i — | i 0.4 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 0.4 | i — | i 0.4 | |||||||||
Income
Tax (Expense) Benefit | i 0.1 | i — | i 0.1 | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.3 | i — | i 0.3 | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.3 | i — | i 0.3 | |||||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 4.6 | ) | $ | ( i 9.8 | ) | $ | ( i 14.4 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2018 | $ | ( i 4.4 | ) | $ | ( i 10.7 | ) | $ | ( i 15.1 | ) | |||
Change
in Fair Value Recognized in AOCI | i 0.3 | i — | i 0.3 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 0.6 | i — | i 0.6 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 0.1 | ) | ( i 0.1 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.2 | i 0.2 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 0.6 | i 0.1 | i 0.7 | |||||||||
Income
Tax (Expense) Benefit | i 0.1 | i — | i 0.1 | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.5 | i 0.1 | i 0.6 | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.8 | i 0.1 | i 0.9 | |||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 3.6 | ) | $ | ( i 10.6 | ) | $ | ( i 14.2 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2017 | $ | ( i 4.5 | ) | $ | ( i 8.1 | ) | $ | ( i 12.6 | ) | |||
Change
in Fair Value Recognized in AOCI | i — | i — | i — | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 1.0 | i — | i 1.0 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 0.1 | ) | ( i 0.1 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.2 | i 0.2 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 1.0 | i 0.1 | i 1.1 | |||||||||
Income
Tax (Expense) Benefit | i 0.2 | i — | i 0.2 | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.8 | i 0.1 | i 0.9 | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.8 | i 0.1 | i 0.9 | |||||||||
ASU
2018-02 Adoption | ( i 0.9 | ) | ( i 1.8 | ) | ( i 2.7 | ) | ||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 4.6 | ) | $ | ( i 9.8 | ) | $ | ( i 14.4 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2019 | $ | i 1.4 | $ | ( i 8.1 | ) | $ | ( i 6.7 | ) | ||||
Change
in Fair Value Recognized in AOCI | ( i 0.3 | ) | i — | ( i 0.3 | ) | |||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Amortization of Prior Service Cost (Credit) | i — | ( i 1.4 | ) | ( i 1.4 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.6 | i 0.6 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i — | ( i 0.8 | ) | ( i 0.8 | ) | |||||||
Income
Tax (Expense) Benefit | i — | ( i 0.2 | ) | ( i 0.2 | ) | |||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i — | ( i 0.6 | ) | ( i 0.6 | ) | |||||||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.3 | ) | ( i 0.6 | ) | ( i 0.9 | ) | ||||||
Balance
in AOCI as of September 30, 2019 | $ | i 1.1 | $ | ( i 8.7 | ) | $ | ( i 7.6 | ) | ||||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2018 | $ | i 2.3 | $ | ( i 2.7 | ) | $ | ( i 0.4 | ) | ||||
Change
in Fair Value Recognized in AOCI | i — | i — | i — | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | ( i 0.4 | ) | i — | ( i 0.4 | ) | |||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 1.3 | ) | ( i 1.3 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.4 | i 0.4 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.4 | ) | ( i 0.9 | ) | ( i 1.3 | ) | ||||||
Income
Tax (Expense) Benefit | ( i 0.1 | ) | ( i 0.2 | ) | ( i 0.3 | ) | ||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.3 | ) | ( i 0.7 | ) | ( i 1.0 | ) | ||||||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.3 | ) | ( i 0.7 | ) | ( i 1.0 | ) | ||||||
Balance
in AOCI as of September 30, 2018 | $ | i 2.0 | $ | ( i 3.4 | ) | $ | ( i 1.4 | ) | ||||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2018 | $ | i 1.8 | $ | ( i 6.8 | ) | $ | ( i 5.0 | ) | ||||
Change
in Fair Value Recognized in AOCI | ( i 0.3 | ) | i — | ( i 0.3 | ) | |||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | ( i 0.5 | ) | i — | ( i 0.5 | ) | |||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 4.0 | ) | ( i 4.0 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 1.6 | i 1.6 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.5 | ) | ( i 2.4 | ) | ( i 2.9 | ) | ||||||
Income
Tax (Expense) Benefit | ( i 0.1 | ) | ( i 0.5 | ) | ( i 0.6 | ) | ||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.4 | ) | ( i 1.9 | ) | ( i 2.3 | ) | ||||||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.7 | ) | ( i 1.9 | ) | ( i 2.6 | ) | ||||||
Balance
in AOCI as of September 30, 2019 | $ | i 1.1 | $ | ( i 8.7 | ) | $ | ( i 7.6 | ) | ||||
Cash
Flow Hedges | Pension | |||||||||||||||
Nine Months Ended September 30, 2018 | Commodity | Interest Rate | and OPEB | Total | ||||||||||||
(in
millions) | ||||||||||||||||
Balance in AOCI as of December 31, 2017 | $ | i — | $ | i 2.2 | $ | ( i 0.9 | ) | $ | i 1.3 | |||||||
Change
in Fair Value Recognized in AOCI | ( i 0.7 | ) | i — | i — | ( i 0.7 | ) | ||||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||||||
Purchased Electricity for Resale (a) | i 0.9 | i — | i — | i 0.9 | ||||||||||||
Interest
Expense (a) | i — | ( i 0.9 | ) | i — | ( i 0.9 | ) | ||||||||||
Amortization
of Prior Service Cost (Credit) | i — | i — | ( i 3.9 | ) | ( i 3.9 | ) | ||||||||||
Amortization
of Actuarial (Gains) Losses | i — | i — | i 1.0 | i 1.0 | ||||||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 0.9 | ( i 0.9 | ) | ( i 2.9 | ) | ( i 2.9 | ) | |||||||||
Income
Tax (Expense) Benefit | i 0.2 | ( i 0.2 | ) | ( i 0.6 | ) | ( i 0.6 | ) | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.7 | ( i 0.7 | ) | ( i 2.3 | ) | ( i 2.3 | ) | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i — | ( i 0.7 | ) | ( i 2.3 | ) | ( i 3.0 | ) | |||||||||
ASU
2018-02 Adoption | i — | i 0.5 | ( i 0.2 | ) | i 0.3 | |||||||||||
Balance
in AOCI as of September 30, 2018 | $ | i — | $ | i 2.0 | $ | ( i 3.4 | ) | $ | ( i 1.4 | ) | ||||||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2019 | $ | ( i 10.7 | ) | $ | ( i 2.4 | ) | $ | ( i 13.1 | ) | |||
Change
in Fair Value Recognized in AOCI | i 0.4 | i — | i 0.4 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Amortization of Prior Service Cost (Credit) | i — | ( i 0.2 | ) | ( i 0.2 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.2 | i 0.2 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i — | i — | i — | |||||||||
Income
Tax (Expense) Benefit | i — | i — | i — | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i — | i — | i — | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.4 | i — | i 0.4 | |||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 10.3 | ) | $ | ( i 2.4 | ) | $ | ( i 12.7 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2018 | $ | ( i 12.2 | ) | $ | ( i 1.7 | ) | $ | ( i 13.9 | ) | |||
Change
in Fair Value Recognized in AOCI | i — | i — | i — | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 0.4 | i — | i 0.4 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 0.2 | ) | ( i 0.2 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.2 | i 0.2 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 0.4 | i — | i 0.4 | |||||||||
Income
Tax (Expense) Benefit | i 0.1 | i — | i 0.1 | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.3 | i — | i 0.3 | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.3 | i — | i 0.3 | |||||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 11.9 | ) | $ | ( i 1.7 | ) | $ | ( i 13.6 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2018 | $ | ( i 11.5 | ) | $ | ( i 2.3 | ) | $ | ( i 13.8 | ) | |||
Change
in Fair Value Recognized in AOCI | i 0.4 | i — | i 0.4 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 1.0 | i — | i 1.0 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 0.6 | ) | ( i 0.6 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.5 | i 0.5 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 1.0 | ( i 0.1 | ) | i 0.9 | ||||||||
Income
Tax (Expense) Benefit | i 0.2 | i — | i 0.2 | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.8 | ( i 0.1 | ) | i 0.7 | ||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 1.2 | ( i 0.1 | ) | i 1.1 | ||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 10.3 | ) | $ | ( i 2.4 | ) | $ | ( i 12.7 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2017 | $ | ( i 10.7 | ) | $ | ( i 1.4 | ) | $ | ( i 12.1 | ) | |||
Change
in Fair Value Recognized in AOCI | i — | i — | i — | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 1.5 | i — | i 1.5 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 0.6 | ) | ( i 0.6 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.6 | i 0.6 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 1.5 | i — | i 1.5 | |||||||||
Income
Tax (Expense) Benefit | i 0.3 | i — | i 0.3 | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 1.2 | i — | i 1.2 | |||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 1.2 | i — | i 1.2 | |||||||||
ASU
2018-02 Adoption | ( i 2.4 | ) | ( i 0.3 | ) | ( i 2.7 | ) | ||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 11.9 | ) | $ | ( i 1.7 | ) | $ | ( i 13.6 | ) | |||
Cash
Flow Hedge – | ||||
Three Months Ended September 30, 2019 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of June 30, 2019 | $ | i 0.3 | ||
Change
in Fair Value Recognized in AOCI | ( i 0.2 | ) | ||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 0.1 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.1 | ) | ||
Income
Tax (Expense) Benefit | i — | |||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.1 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.3 | ) | ||
Balance
in AOCI as of September 30, 2019 | $ | i — | ||
Cash
Flow Hedge – | ||||
Three Months Ended September 30, 2018 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of June 30, 2018 | $ | i 1.7 | ||
Change
in Fair Value Recognized in AOCI | i — | |||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 0.5 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.5 | ) | ||
Income
Tax (Expense) Benefit | ( i 0.1 | ) | ||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.4 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.4 | ) | ||
Balance
in AOCI as of September 30, 2018 | $ | i 1.3 | ||
Cash
Flow Hedge – | ||||
Nine Months Ended September 30, 2019 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of December 31, 2018 | $ | i 1.0 | ||
Change
in Fair Value Recognized in AOCI | ( i 0.2 | ) | ||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 1.0 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 1.0 | ) | ||
Income
Tax (Expense) Benefit | ( i 0.2 | ) | ||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.8 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 1.0 | ) | ||
Balance
in AOCI as of September 30, 2019 | $ | i — | ||
Cash
Flow Hedge – | ||||
Nine Months Ended September 30, 2018 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of December 31, 2017 | $ | i 1.9 | ||
Change
in Fair Value Recognized in AOCI | i — | |||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 1.3 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 1.3 | ) | ||
Income
Tax (Expense) Benefit | ( i 0.3 | ) | ||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 1.0 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 1.0 | ) | ||
ASU
2018-02 Adoption | i 0.4 | |||
Balance in AOCI as of September 30,
2018 | $ | i 1.3 | ||
Cash
Flow Hedge – | ||||
Three Months Ended September 30, 2019 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of June 30, 2019 | $ | i 1.6 | ||
Change
in Fair Value Recognized in AOCI | ( i 0.3 | ) | ||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | i 0.2 | |||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 0.2 | |||
Income
Tax (Expense) Benefit | i 0.1 | |||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.1 | |||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.2 | ) | ||
Balance
in AOCI as of September 30, 2019 | $ | i 1.4 | ||
Cash
Flow Hedge – | ||||
Three Months Ended September 30, 2018 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of June 30, 2018 | $ | i 2.6 | ||
Change
in Fair Value Recognized in AOCI | i — | |||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 0.2 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.2 | ) | ||
Income
Tax (Expense) Benefit | i — | |||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.2 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.2 | ) | ||
Balance
in AOCI as of September 30, 2018 | $ | i 2.4 | ||
Cash
Flow Hedge – | ||||
Nine Months Ended September 30, 2019 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of December 31, 2018 | $ | i 2.1 | ||
Change
in Fair Value Recognized in AOCI | ( i 0.3 | ) | ||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 0.5 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.5 | ) | ||
Income
Tax (Expense) Benefit | ( i 0.1 | ) | ||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.4 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.7 | ) | ||
Balance
in AOCI as of September 30, 2019 | $ | i 1.4 | ||
Cash
Flow Hedge – | ||||
Nine Months Ended September 30, 2018 | Interest Rate | |||
(in millions) | ||||
Balance in AOCI as of December 31, 2017 | $ | i 2.6 | ||
Change
in Fair Value Recognized in AOCI | i — | |||
Amount
of (Gain) Loss Reclassified from AOCI | ||||
Interest Expense (a) | ( i 0.9 | ) | ||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | ( i 0.9 | ) | ||
Income
Tax (Expense) Benefit | ( i 0.2 | ) | ||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | ( i 0.7 | ) | ||
Net
Current Period Other Comprehensive Income (Loss) | ( i 0.7 | ) | ||
ASU
2018-02 Adoption | i 0.5 | |||
Balance in AOCI as of September 30,
2018 | $ | i 2.4 | ||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2019 | $ | ( i 2.5 | ) | $ | ( i 2.7 | ) | $ | ( i 5.2 | ) | |||
Change
in Fair Value Recognized in AOCI | i 0.3 | i — | i 0.3 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Amortization of Prior Service Cost (Credit) | i — | ( i 0.5 | ) | ( i 0.5 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.2 | i 0.2 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i — | ( i 0.3 | ) | ( i 0.3 | ) | |||||||
Income
Tax (Expense) Benefit | i — | i — | i — | |||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i — | ( i 0.3 | ) | ( i 0.3 | ) | |||||||
Net
Current Period Other Comprehensive Income (Loss) | i 0.3 | ( i 0.3 | ) | i — | ||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 2.2 | ) | $ | ( i 3.0 | ) | $ | ( i 5.2 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Three Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of June 30, 2018 | $ | ( i 6.4 | ) | $ | i 1.7 | $ | ( i 4.7 | ) | ||||
Change
in Fair Value Recognized in AOCI | i 2.3 | i — | i 2.3 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 0.5 | i — | i 0.5 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 0.5 | ) | ( i 0.5 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.1 | i 0.1 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 0.5 | ( i 0.4 | ) | i 0.1 | ||||||||
Income
Tax (Expense) Benefit | i 0.1 | ( i 0.1 | ) | i — | ||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.4 | ( i 0.3 | ) | i 0.1 | ||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 2.7 | ( i 0.3 | ) | i 2.4 | ||||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 3.7 | ) | $ | i 1.4 | $ | ( i 2.3 | ) | ||||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2019 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2018 | $ | ( i 3.3 | ) | $ | ( i 2.1 | ) | $ | ( i 5.4 | ) | |||
Change
in Fair Value Recognized in AOCI | i 0.3 | i — | i 0.3 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 1.0 | i — | i 1.0 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 1.5 | ) | ( i 1.5 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.4 | i 0.4 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 1.0 | ( i 1.1 | ) | ( i 0.1 | ) | |||||||
Income
Tax (Expense) Benefit | i 0.2 | ( i 0.2 | ) | i — | ||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 0.8 | ( i 0.9 | ) | ( i 0.1 | ) | |||||||
Net
Current Period Other Comprehensive Income (Loss) | i 1.1 | ( i 0.9 | ) | i 0.2 | ||||||||
Balance
in AOCI as of September 30, 2019 | $ | ( i 2.2 | ) | $ | ( i 3.0 | ) | $ | ( i 5.2 | ) | |||
Cash
Flow Hedge – | Pension | |||||||||||
Nine Months Ended September 30, 2018 | Interest Rate | and OPEB | Total | |||||||||
(in
millions) | ||||||||||||
Balance in AOCI as of December 31, 2017 | $ | ( i 6.0 | ) | $ | i 2.0 | $ | ( i 4.0 | ) | ||||
Change
in Fair Value Recognized in AOCI | i 2.3 | i — | i 2.3 | |||||||||
Amount
of (Gain) Loss Reclassified from AOCI | ||||||||||||
Interest Expense (a) | i 1.6 | i — | i 1.6 | |||||||||
Amortization
of Prior Service Cost (Credit) | i — | ( i 1.5 | ) | ( i 1.5 | ) | |||||||
Amortization
of Actuarial (Gains) Losses | i — | i 0.2 | i 0.2 | |||||||||
Reclassifications
from AOCI, before Income Tax (Expense) Benefit | i 1.6 | ( i 1.3 | ) | i 0.3 | ||||||||
Income
Tax (Expense) Benefit | i 0.3 | ( i 0.3 | ) | i — | ||||||||
Reclassifications
from AOCI, Net of Income Tax (Expense) Benefit | i 1.3 | ( i 1.0 | ) | i 0.3 | ||||||||
Net
Current Period Other Comprehensive Income (Loss) | i 3.6 | ( i 1.0 | ) | i 2.6 | ||||||||
ASU
2018-02 Adoption | ( i 1.3 | ) | i 0.4 | ( i 0.9 | ) | |||||||
Balance
in AOCI as of September 30, 2018 | $ | ( i 3.7 | ) | $ | i 1.4 | $ | ( i 2.3 | ) | ||||
(a) | Amounts
reclassified to the referenced line item on the statements of income. |
(b) | The change in fair value includes $ i 2
million and $ i 6 million related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC
for the three and nine months ended September 30, 2019, respectively. See “Sempra Renewables LLC” section of Note 14 for additional information. |
Gross
Investment | Accumulated Depreciation | Net Investment | Accelerated Depreciation Regulatory Asset (a) | Materials and Supplies | Cost of Removal Regulatory Liability | Expected Retirement Date | Remaining Recovery Period | |||||||||||||||||||
(dollars
in millions) | ||||||||||||||||||||||||||
$ | i 106.6 | $ | i 80.6 | $ | i 26.0 | $ | i 21.9 | $ | i 3.2 | $ | i 5.1 | 2020 | i 27
years | |||||||||||||
(a) | In October 2018, PSO changed depreciation rates to utilize the 2020 end-of-life and defer depreciation expense to a regulatory asset for the amount in excess of the previously OCC-approved depreciation rates for Oklaunion Power Station. See “2018 Oklahoma Base Rate Case” discussion below for additional information. |
AEP | ||||||||
September
30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in millions) | |||||||
Regulatory
Assets Currently Earning a Return | ||||||||
Plant Retirement Costs – Unrecovered Plant | $ | i 50.3 | $ | i 50.3 | ||||
Kentucky
Deferred Purchase Power Expenses | i 26.2 | i 14.5 | ||||||
Oklaunion
Power Station Accelerated Depreciation | i 21.9 | i 5.5 | ||||||
Other
Regulatory Assets Pending Final Regulatory Approval | i 5.4 | i 9.3 | ||||||
Regulatory
Assets Currently Not Earning a Return | ||||||||
Plant Retirement Costs – Asset Retirement Obligation Costs | i 37.8 | i 35.3 | ||||||
Storm-Related
Costs (a) | i — | i 152.4 | ||||||
Other
Regulatory Assets Pending Final Regulatory Approval | i 26.8 | i 20.7 | ||||||
Total
Regulatory Assets Pending Final Regulatory Approval (b) | $ | i 168.4 | $ | i 288.0 | ||||
(a) | In
September 2019, AEP Texas securitized $ i 235 million of storm-related costs. As a result of the securitization, the regulatory asset balance was transferred to Securitized Assets on the balance sheets. See “Texas Storm Cost Securitization” discussion below for additional information. |
(b) | In
2015, APCo recorded a $ i 91 million reduction, before cost of removal of $ i 17
million, to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates. |
AEP
Texas | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in
millions) | |||||||
Regulatory Assets Currently Not Earning a Return | ||||||||
Rate Case Expense | $ | i 2.3 | $ | i 0.2 | ||||
Storm-Related
Costs (a) | i — | i 152.4 | ||||||
Total
Regulatory Assets Pending Final Regulatory Approval | $ | i 2.3 | $ | i 152.6 | ||||
(a) | In
September 2019, AEP Texas securitized $ i 235 million of storm-related costs. As a result of the securitization, the regulatory asset balance was transferred to Securitized Assets on the balance sheets. See “Texas Storm Cost Securitization” discussion below for additional information. |
APCo | ||||||||
September
30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in millions) | |||||||
Regulatory
Assets Currently Earning a Return | ||||||||
Plant Retirement Costs – Materials and Supplies | $ | i 5.1 | $ | i 9.0 | ||||
Regulatory
Assets Currently Not Earning a Return | ||||||||
Plant Retirement Costs – Asset Retirement Obligation Costs | i 37.8 | i 35.3 | ||||||
Other
Regulatory Assets Pending Final Regulatory Approval | i — | i 0.6 | ||||||
Total
Regulatory Assets Pending Final Regulatory Approval (a) | $ | i 42.9 | $ | i 44.9 | ||||
(a) | In
2015, APCo recorded a $ i 91 million reduction, before cost of removal of $ i 17
million, to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates. |
I&M | ||||||||
September
30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in millions) | |||||||
Regulatory
Assets Currently Not Earning a Return | ||||||||
Cook Plant Study Costs | $ | i 10.7 | $ | i — | ||||
Other
Regulatory Assets Pending Final Regulatory Approval | i 0.1 | i 3.3 | ||||||
Total
Regulatory Assets Pending Final Regulatory Approval | $ | i 10.8 | $ | i 3.3 | ||||
OPCo | ||||||||
September
30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in millions) | |||||||
Regulatory
Assets Currently Not Earning a Return | ||||||||
Other Regulatory Assets Pending Final Regulatory Approval | $ | i 0.1 | $ | i 1.0 | ||||
Total
Regulatory Assets Pending Final Regulatory Approval | $ | i 0.1 | $ | i 1.0 | ||||
PSO | ||||||||
September
30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in millions) | |||||||
Regulatory
Assets Currently Earning a Return | ||||||||
Oklaunion Power Station Accelerated Depreciation | $ | i 21.9 | $ | i 5.5 | ||||
Regulatory
Assets Currently Not Earning a Return | ||||||||
Other Regulatory Assets Pending Final Regulatory Approval | i — | i 0.5 | ||||||
Total
Regulatory Assets Pending Final Regulatory Approval | $ | i 21.9 | $ | i 6.0 | ||||
SWEPCo | ||||||||
September
30, | ||||||||
2019 | 2018 | |||||||
Noncurrent Regulatory Assets | (in millions) | |||||||
Regulatory
Assets Currently Earning a Return | ||||||||
Plant Retirement Costs – Unrecovered Plant | $ | i 50.3 | $ | i 50.3 | ||||
Other
Regulatory Assets Pending Final Regulatory Approval | i 0.3 | i 0.3 | ||||||
Regulatory
Assets Currently Not Earning a Return | ||||||||
Asset Retirement Obligation - Arkansas, Louisiana | i 6.8 | i 5.3 | ||||||
Rate
Case Expense – Texas | i 1.4 | i 4.9 | ||||||
Other
Regulatory Assets Pending Final Regulatory Approval | i 4.2 | i 3.6 | ||||||
Total
Regulatory Assets Pending Final Regulatory Approval | $ | i 63.0 | $ | i 64.4 | ||||
Company | Amount | Maturity | ||||
(in
millions) | ||||||
AEP | $ | i 204.4 | October
2019 to October 2020 | |||
AEP Texas | i 2.2 | July
2020 | ||||
OPCo | i 3.6 | April
2020 to September 2020 | ||||
Purchase Price Allocation of Sempra Renewables LLC
at Acquisition Date - April 22nd, 2019 | ||||||||||||
Assets: | Liabilities and Equity: | Net Purchase Price | ||||||||||
(in millions) | ||||||||||||
Current Assets | $ | i 9.7 | Current
Liabilities | $ | i 12.9 | |||||||
Property,
Plant and Equipment | i 238.1 | Asset Retirement Obligations | i 5.7 | |||||||||
Investment
in Joint Ventures | i 405.9 | Total Liabilities | i 18.6 | |||||||||
Other
Noncurrent Assets | i 82.9 | Noncontrolling Interest | i 134.8 | |||||||||
Total
Assets | $ | i 736.6 | Liabilities
and Noncontrolling Interest | $ | i 153.4 | $ | i 583.2 | |||||
Pension
Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 23.8 | $ | i 24.4 | $ | i 2.4 | $ | i 2.9 | |||||||
Interest
Cost | i 51.1 | i 46.9 | i 12.6 | i 11.8 | |||||||||||
Expected
Return on Plan Assets | ( i 74.0 | ) | ( i 72.6 | ) | ( i 23.4 | ) | ( i 25.6 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 17.3 | ) | ( i 17.3 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 14.4 | i 21.3 | i 5.5 | i 2.7 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 15.3 | $ | i 20.0 | $ | ( i 20.2 | ) | $ | ( i 25.5 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 71.6 | $ | i 73.2 | $ | i 7.1 | $ | i 8.7 | |||||||
Interest
Cost | i 153.3 | i 140.8 | i 37.9 | i 35.5 | |||||||||||
Expected
Return on Plan Assets | ( i 222.0 | ) | ( i 217.7 | ) | ( i 70.3 | ) | ( i 76.7 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 51.8 | ) | ( i 51.8 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 43.2 | i 63.9 | i 16.6 | i 7.9 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 46.1 | $ | i 60.2 | $ | ( i 60.5 | ) | $ | ( i 76.4 | ) | |||||
Pension Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three
Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions) | |||||||||||||||
Service Cost | $ | i 2.2 | $ | i 2.3 | $ | i 0.1 | $ | i 0.3 | |||||||
Interest
Cost | i 4.4 | i 4.0 | i 1.0 | i 0.9 | |||||||||||
Expected
Return on Plan Assets | ( i 6.5 | ) | ( i 6.4 | ) | ( i 1.9 | ) | ( i 2.1 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 1.5 | ) | ( i 1.5 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 1.2 | i 1.8 | i 0.5 | i 0.2 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 1.3 | $ | i 1.7 | $ | ( i 1.8 | ) | $ | ( i 2.2 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 6.5 | $ | i 6.9 | $ | i 0.5 | $ | i 0.7 | |||||||
Interest
Cost | i 13.1 | i 12.0 | i 3.0 | i 2.8 | |||||||||||
Expected
Return on Plan Assets | ( i 19.4 | ) | ( i 19.2 | ) | ( i 5.8 | ) | ( i 6.4 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 4.4 | ) | ( i 4.4 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 3.7 | i 5.4 | i 1.4 | i 0.6 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 3.9 | $ | i 5.1 | $ | ( i 5.3 | ) | $ | ( i 6.7 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 2.4 | $ | i 2.4 | $ | i 0.2 | $ | i 0.3 | |||||||
Interest
Cost | i 6.3 | i 5.8 | i 2.2 | i 2.1 | |||||||||||
Expected
Return on Plan Assets | ( i 9.4 | ) | ( i 9.1 | ) | ( i 3.7 | ) | ( i 4.0 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 2.5 | ) | ( i 2.5 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 1.8 | i 2.6 | i 1.0 | i 0.4 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 1.1 | $ | i 1.7 | $ | ( i 2.8 | ) | $ | ( i 3.7 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 7.1 | $ | i 7.0 | $ | i 0.7 | $ | i 0.8 | |||||||
Interest
Cost | i 18.9 | i 17.6 | i 6.5 | i 6.2 | |||||||||||
Expected
Return on Plan Assets | ( i 28.1 | ) | ( i 27.4 | ) | ( i 11.0 | ) | ( i 12.0 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 7.5 | ) | ( i 7.5 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 5.3 | i 7.9 | i 2.8 | i 1.4 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 3.2 | $ | i 5.1 | $ | ( i 8.5 | ) | $ | ( i 11.1 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 3.3 | $ | i 3.4 | $ | i 0.3 | $ | i 0.4 | |||||||
Interest
Cost | i 6.0 | i 5.6 | i 1.5 | i 1.4 | |||||||||||
Expected
Return on Plan Assets | ( i 9.1 | ) | ( i 9.0 | ) | ( i 2.8 | ) | ( i 3.1 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 2.4 | ) | ( i 2.4 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 1.6 | i 2.5 | i 0.7 | i 0.3 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 1.8 | $ | i 2.5 | $ | ( i 2.7 | ) | $ | ( i 3.4 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 10.0 | $ | i 10.2 | $ | i 1.0 | $ | i 1.2 | |||||||
Interest
Cost | i 17.9 | i 16.6 | i 4.4 | i 4.1 | |||||||||||
Expected
Return on Plan Assets | ( i 27.5 | ) | ( i 26.8 | ) | ( i 8.5 | ) | ( i 9.3 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 7.1 | ) | ( i 7.1 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 4.9 | i 7.4 | i 2.0 | i 0.9 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 5.3 | $ | i 7.4 | $ | ( i 8.2 | ) | $ | ( i 10.2 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 1.9 | $ | i 2.0 | $ | i 0.2 | $ | i 0.2 | |||||||
Interest
Cost | i 4.8 | i 4.4 | i 1.4 | i 1.3 | |||||||||||
Expected
Return on Plan Assets | ( i 7.3 | ) | ( i 7.2 | ) | ( i 2.7 | ) | ( i 2.9 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 1.8 | ) | ( i 1.7 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 1.3 | i 2.0 | i 0.6 | i 0.3 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 0.7 | $ | i 1.2 | $ | ( i 2.3 | ) | $ | ( i 2.8 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 5.9 | $ | i 5.8 | $ | i 0.6 | $ | i 0.7 | |||||||
Interest
Cost | i 14.3 | i 13.3 | i 4.1 | i 3.9 | |||||||||||
Expected
Return on Plan Assets | ( i 22.0 | ) | ( i 21.6 | ) | ( i 8.1 | ) | ( i 8.8 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 5.2 | ) | ( i 5.2 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 4.0 | i 6.0 | i 1.9 | i 0.8 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 2.2 | $ | i 3.5 | $ | ( i 6.7 | ) | $ | ( i 8.6 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 1.6 | $ | i 1.7 | $ | i 0.2 | $ | i 0.1 | |||||||
Interest
Cost | i 2.6 | i 2.5 | i 0.7 | i 0.6 | |||||||||||
Expected
Return on Plan Assets | ( i 4.0 | ) | ( i 4.0 | ) | ( i 1.3 | ) | ( i 1.3 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 1.1 | ) | ( i 1.1 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 0.7 | i 1.1 | i 0.3 | i 0.1 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 0.9 | $ | i 1.3 | $ | ( i 1.2 | ) | $ | ( i 1.6 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 4.9 | $ | i 5.3 | $ | i 0.5 | $ | i 0.5 | |||||||
Interest
Cost | i 7.9 | i 7.4 | i 2.0 | i 1.8 | |||||||||||
Expected
Return on Plan Assets | ( i 12.2 | ) | ( i 12.1 | ) | ( i 3.9 | ) | ( i 4.1 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 3.2 | ) | ( i 3.2 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 2.2 | i 3.3 | i 0.9 | i 0.4 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 2.8 | $ | i 3.9 | $ | ( i 3.7 | ) | $ | ( i 4.6 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 2.1 | $ | i 2.4 | $ | i 0.2 | $ | i 0.2 | |||||||
Interest
Cost | i 3.1 | i 2.8 | i 0.7 | i 0.7 | |||||||||||
Expected
Return on Plan Assets | ( i 4.4 | ) | ( i 4.4 | ) | ( i 1.5 | ) | ( i 1.6 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 1.3 | ) | ( i 1.3 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 0.9 | i 1.3 | i 0.4 | i 0.2 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 1.7 | $ | i 2.1 | $ | ( i 1.5 | ) | $ | ( i 1.8 | ) | |||||
Pension
Plans | OPEB | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Service Cost | $ | i 6.4 | $ | i 7.0 | $ | i 0.6 | $ | i 0.7 | |||||||
Interest
Cost | i 9.3 | i 8.5 | i 2.3 | i 2.1 | |||||||||||
Expected
Return on Plan Assets | ( i 13.3 | ) | ( i 13.1 | ) | ( i 4.5 | ) | ( i 4.8 | ) | |||||||
Amortization
of Prior Service Credit | i — | i — | ( i 3.9 | ) | ( i 3.9 | ) | |||||||||
Amortization
of Net Actuarial Loss | i 2.6 | i 3.8 | i 1.1 | i 0.5 | |||||||||||
Net
Periodic Benefit Cost (Credit) | $ | i 5.0 | $ | i 6.2 | $ | ( i 4.4 | ) | $ | ( i 5.4 | ) | |||||
• | Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo. |
• | Transmission
and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEP Texas and OPCo. |
• | OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load. |
• | Development, construction and operation of transmission facilities through investments
in AEPTCo. These investments have FERC-approved ROEs. |
• | Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved ROEs. |
• | Competitive generation in ERCOT and PJM. |
• | Marketing,
risk management and retail activities in ERCOT, PJM, SPP and MISO. |
• | Contracted renewable energy investments and management services. |
Three
Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and Other (a) | Reconciling
Adjustments | Consolidated | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Revenues from: | |||||||||||||||||||||||||||
External
Customers | $ | i 2,598.9 | $ | i 1,147.3 | $ | i 65.5 | $ | i 501.2 | $ | i 2.1 | $ | i — | $ | i 4,315.0 | |||||||||||||
Other
Operating Segments | i 46.6 | i 39.3 | i 207.5 | i 32.5 | i 22.3 | ( i 348.2 | ) | i — | |||||||||||||||||||
Total
Revenues | $ | i 2,645.5 | $ | i 1,186.6 | $ | i 273.0 | $ | i 533.7 | $ | i 24.4 | $ | ( i 348.2 | ) | $ | i 4,315.0 | ||||||||||||
Net
Income (Loss) | $ | i 438.4 | $ | i 133.7 | $ | i 127.0 | $ | i 88.7 | $ | ( i 53.9 | ) | $ | i — | $ | i 733.9 | ||||||||||||
Three
Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and Other (a) | Reconciling
Adjustments | Consolidated | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Revenues from: | |||||||||||||||||||||||||||
External
Customers | $ | i 2,610.2 | $ | i 1,180.9 | $ | i 51.9 | $ | i 486.5 | $ | i 3.6 | $ | i — | $ | i 4,333.1 | |||||||||||||
Other
Operating Segments | i 26.5 | i 30.6 | i 135.3 | i 35.1 | i 20.1 | ( i 247.6 | ) | i — | |||||||||||||||||||
Total
Revenues | $ | i 2,636.7 | $ | i 1,211.5 | $ | i 187.2 | $ | i 521.6 | $ | i 23.7 | $ | ( i 247.6 | ) | $ | i 4,333.1 | ||||||||||||
Net
Income (Loss) | $ | i 345.6 | $ | i 145.2 | $ | i 74.2 | $ | i 5.1 | $ | i 9.6 | $ | i — | $ | i 579.7 | |||||||||||||
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and Other (a) | Reconciling
Adjustments | Consolidated | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Revenues from: | |||||||||||||||||||||||||||
External
Customers | $ | i 7,087.6 | $ | i 3,328.7 | $ | i 196.5 | $ | i 1,323.8 | $ | i 8.8 | $ | i — | $ | i 11,945.4 | |||||||||||||
Other
Operating Segments | i 85.0 | i 125.6 | i 611.8 | i 104.4 | i 64.9 | ( i 991.7 | ) | i — | |||||||||||||||||||
Total
Revenues | $ | i 7,172.6 | $ | i 3,454.3 | $ | i 808.3 | $ | i 1,428.2 | $ | i 73.7 | $ | ( i 991.7 | ) | $ | i 11,945.4 | ||||||||||||
Net
Income (Loss) | $ | i 920.8 | $ | i 421.6 | $ | i 407.6 | $ | i 133.1 | $ | ( i 116.0 | ) | $ | i — | $ | i 1,767.1 | ||||||||||||
Nine
Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and Other (a) | Reconciling
Adjustments | Consolidated | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Revenues from: | |||||||||||||||||||||||||||
External
Customers | $ | i 7,332.4 | $ | i 3,450.0 | $ | i 196.5 | $ | i 1,399.3 | $ | i 16.4 | $ | i — | $ | i 12,394.6 | |||||||||||||
Other
Operating Segments | i 61.3 | i 60.9 | i 408.7 | i 88.1 | i 55.1 | ( i 674.1 | ) | i — | |||||||||||||||||||
Total
Revenues | $ | i 7,393.7 | $ | i 3,510.9 | $ | i 605.2 | $ | i 1,487.4 | $ | i 71.5 | $ | ( i 674.1 | ) | $ | i 12,394.6 | ||||||||||||
Net
Income (Loss) | $ | i 856.3 | $ | i 384.6 | $ | i 280.9 | $ | i 61.8 | $ | ( i 17.1 | ) | $ | i — | $ | i 1,566.5 | ||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and Other (a) | Reconciling Adjustments | Consolidated | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Total Property, Plant and Equipment | $ | i 46,739.8 | $ | i 19,283.9 | $ | i 9,700.4 | $ | i 1,661.6 | $ | i 421.7 | $ | ( i 354.5 | ) | (b) | $ | i 77,452.9 | ||||||||||||
Accumulated
Depreciation and Amortization | i 14,359.3 | i 3,907.3 | i 383.8 | i 99.8 | i 196.4 | ( i 186.4 | ) | (b) | i 18,760.2 | |||||||||||||||||||
Total
Property Plant and Equipment - Net | $ | i 32,380.5 | $ | i 15,376.6 | $ | i 9,316.6 | $ | i 1,561.8 | $ | i 225.3 | $ | ( i 168.1 | ) | (b) | $ | i 58,692.7 | ||||||||||||
Total
Assets | $ | i 40,746.1 | $ | i 17,967.6 | $ | i 10,606.7 | $ | i 3,315.9 | $ | i 5,002.3 | (c) | $ | ( i 3,737.9 | ) | (b)
(d) | $ | i 73,900.7 | |||||||||||
Long-term
Debt Due Within One Year: | ||||||||||||||||||||||||||||
Nonaffiliated | $ | i 687.4 | $ | i 391.5 | $ | i 249.0 | $ | i — | $ | ( i 0.2 | ) | (e) | $ | i — | $ | i 1,327.7 | ||||||||||||
Long-term
Debt: | ||||||||||||||||||||||||||||
Affiliated | i 59.0 | i — | i — | i 32.2 | i — | ( i 91.2 | ) | i — | ||||||||||||||||||||
Nonaffiliated | i 12,161.1 | i 5,868.9 | i 3,426.9 | ( i 0.3 | ) | i 3,096.9 | i — | i 24,553.5 | ||||||||||||||||||||
Total
Long-term Debt | $ | i 12,907.5 | $ | i 6,260.4 | $ | i 3,675.9 | $ | i 31.9 | $ | i 3,096.7 | (e) | $ | ( i 91.2 | ) | $ | i 25,881.2 | ||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and Other (a) | Reconciling Adjustments | Consolidated | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Total Property, Plant and Equipment | $ | i 45,365.1 | $ | i 18,126.7 | $ | i 8,659.5 | $ | i 893.3 | $ | i 395.2 | $ | ( i 354.6 | ) | (b) | $ | i 73,085.2 | ||||||||||||
Accumulated
Depreciation and Amortization | i 13,822.5 | i 3,833.7 | i 282.8 | i 47.0 | i 186.6 | ( i 186.5 | ) | (b) | i 17,986.1 | |||||||||||||||||||
Total
Property Plant and Equipment - Net | $ | i 31,542.6 | $ | i 14,293.0 | $ | i 8,376.7 | $ | i 846.3 | $ | i 208.6 | $ | ( i 168.1 | ) | (b) | $ | i 55,099.1 | ||||||||||||
Total
Assets | $ | i 38,874.3 | $ | i 17,083.4 | $ | i 9,543.7 | $ | i 1,979.7 | $ | i 4,036.5 | (c) | $ | ( i 2,714.8 | ) | (b)
(d) | $ | i 68,802.8 | |||||||||||
Long-term
Debt Due Within One Year: | ||||||||||||||||||||||||||||
Nonaffiliated | $ | i 1,066.3 | $ | i 549.1 | $ | i 85.0 | $ | i 0.1 | $ | ( i 2.0 | ) | (e) | $ | i — | $ | i 1,698.5 | ||||||||||||
Long-term
Debt: | ||||||||||||||||||||||||||||
Affiliated | i 50.0 | i — | i — | i 32.2 | i — | ( i 82.2 | ) | i — | ||||||||||||||||||||
Nonaffiliated | i 11,442.7 | i 5,048.8 | i 2,888.6 | ( i 0.3 | ) | i 2,268.4 | i — | i 21,648.2 | ||||||||||||||||||||
Total
Long-term Debt | $ | i 12,559.0 | $ | i 5,597.9 | $ | i 2,973.6 | $ | i 32.0 | $ | i 2,266.4 | (e) | $ | ( i 82.2 | ) | $ | i 23,346.7 | ||||||||||||
(a) | Corporate
and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and other nonallocated costs. |
(b) | Includes eliminations due to an intercompany finance lease. |
(c) | Includes elimination of AEP Parent’s investments in wholly-owned subsidiary companies. |
(d) | Reconciling
Adjustments for Total Assets primarily include elimination of intercompany advances to affiliates and intercompany accounts receivable. |
(e) | Amounts reflect the impact of fair value hedge accounting. See “Accounting for Fair Value Hedging Strategies” section of Note 10 for additional information. |
Three
Months Ended September 30, 2019 | |||||||||||||||
State Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Revenues
from: | |||||||||||||||
External Customers | $ | i 54.0 | $ | i — | $ | i — | $ | i 54.0 | |||||||
Sales
to AEP Affiliates | i 205.7 | i — | i — | i 205.7 | |||||||||||
Other
Revenues | i — | i — | i — | i — | |||||||||||
Total
Revenues | $ | i 259.7 | $ | i — | $ | i — | $ | i 259.7 | |||||||
Interest
Income | $ | i 0.4 | $ | i 32.3 | $ | ( i 31.9 | ) | (a) | $ | i 0.8 | |||||
Interest
Expense | i 26.4 | i 31.9 | ( i 31.9 | ) | (a) | i 26.4 | |||||||||
Income
Tax Expense | i 30.0 | i 0.1 | i — | i 30.1 | |||||||||||
Net
Income | $ | i 107.3 | $ | i 0.3 | (b) | $ | i — | $ | i 107.6 | ||||||
Three
Months Ended September 30, 2018 | |||||||||||||||
State Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Revenues
from: | |||||||||||||||
External Customers | $ | i 46.0 | $ | i — | $ | i — | $ | i 46.0 | |||||||
Sales
to AEP Affiliates | i 148.4 | i — | i — | i 148.4 | |||||||||||
Other
Revenues | i — | i — | i — | i — | |||||||||||
Total
Revenues | $ | i 194.4 | $ | i — | $ | i — | $ | i 194.4 | |||||||
Interest
Income | $ | i 0.2 | $ | i 26.0 | $ | ( i 25.7 | ) | (a) | $ | i 0.5 | |||||
Interest
Expense | i 19.8 | i 25.7 | ( i 25.7 | ) | (a) | i 19.8 | |||||||||
Income
Tax Expense | i 18.4 | ( i 0.8 | ) | i — | i 17.6 | ||||||||||
Net
Income | $ | i 77.1 | $ | i 1.0 | (b) | $ | i — | $ | i 78.1 | ||||||
Nine
Months Ended September 30, 2019 | |||||||||||||||
State Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Revenues
from: | |||||||||||||||
External Customers | $ | i 162.1 | $ | i — | $ | i — | $ | i 162.1 | |||||||
Sales
to AEP Affiliates | i 608.0 | i — | i — | i 608.0 | |||||||||||
Other
Revenues | i — | i — | i — | i — | |||||||||||
Total
Revenues | $ | i 770.1 | $ | i — | $ | i — | $ | i 770.1 | |||||||
Interest
Income | $ | i 0.8 | $ | i 89.7 | $ | ( i 88.4 | ) | (a) | $ | i 2.1 | |||||
Interest
Expense | i 69.5 | i 88.4 | ( i 88.4 | ) | (a) | i 69.5 | |||||||||
Income
Tax Expense | i 90.5 | i 0.2 | i — | i 90.7 | |||||||||||
Net
Income | $ | i 347.1 | $ | i 0.8 | (b) | $ | i — | $ | i 347.9 | ||||||
Nine
Months Ended September 30, 2018 | |||||||||||||||
State Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Revenues
from: | |||||||||||||||
External Customers | $ | i 132.3 | $ | i — | $ | i — | $ | i 132.3 | |||||||
Sales
to AEP Affiliates | i 453.8 | i — | i — | i 453.8 | |||||||||||
Other
Revenues | i 0.1 | i — | i — | i 0.1 | |||||||||||
Total
Revenues | $ | i 586.2 | $ | i — | $ | i — | $ | i 586.2 | |||||||
Interest
Income | $ | i 0.4 | $ | i 76.2 | $ | ( i 75.3 | ) | (a) | $ | i 1.3 | |||||
Interest
Expense | i 60.7 | i 75.3 | ( i 75.3 | ) | (a) | i 60.7 | |||||||||
Income
Tax Expense | i 63.7 | i — | i — | i 63.7 | |||||||||||
Net
Income | $ | i 243.6 | $ | i 0.6 | (b) | $ | i — | $ | i 244.2 | ||||||
State Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Total Transmission Property | $ | i 9,267.4 | $ | i — | $ | i — | $ | i 9,267.4 | |||||||
Accumulated
Depreciation and Amortization | i 368.8 | i — | i — | i 368.8 | |||||||||||
Total
Transmission Property – Net | $ | i 8,898.6 | $ | i — | $ | i — | $ | i 8,898.6 | |||||||
Notes
Receivable - Affiliated | $ | i — | $ | i 3,511.9 | $ | ( i 3,511.9 | ) | (c) | $ | i — | |||||
Total
Assets | $ | i 9,363.5 | $ | i 3,589.0 | (d) | $ | ( i 3,599.8 | ) | (e) | $ | i 9,352.7 | ||||
Total
Long-term Debt | $ | i 3,550.0 | $ | i 3,511.9 | $ | ( i 3,550.0 | ) | (c) | $ | i 3,511.9 | |||||
State Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Total Transmission Property | $ | i 8,268.1 | $ | i — | $ | i — | $ | i 8,268.1 | |||||||
Accumulated
Depreciation and Amortization | i 271.9 | i — | i — | i 271.9 | |||||||||||
Total
Transmission Property – Net | $ | i 7,996.2 | $ | i — | $ | i — | $ | i 7,996.2 | |||||||
Notes
Receivable - Affiliated | $ | i — | $ | i 2,823.0 | $ | ( i 2,823.0 | ) | (c) | $ | i — | |||||
Total
Assets | $ | i 8,406.8 | $ | i 2,857.1 | (d) | $ | ( i 2,869.8 | ) | (e) | $ | i 8,394.1 | ||||
Total
Long-term Debt | $ | i 2,850.0 | $ | i 2,823.0 | $ | ( i 2,850.0 | ) | (c) | $ | i 2,823.0 | |||||
(a) | Elimination
of intercompany interest income/interest expense on affiliated debt arrangement. |
(b) | Includes the elimination of AEPTCo Parent’s equity earnings in the State Transcos. |
(c) | Elimination of intercompany debt. |
(d) | Includes the elimination of AEPTCo Parent’s investments in State Transcos. |
(e) | Primarily
relates to the elimination of Notes Receivable from the State Transcos. |
Primary Risk Exposure | Unit
of Measure | AEP | AEP Texas | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||
Commodity: | ||||||||||||||||||||||||||||||
Power | MWhs | i 424.3 | i — | i 94.7 | i 37.1 | i 7.3 | i 21.6 | i 6.9 | ||||||||||||||||||||||
Natural
Gas | MMBtus | i 53.2 | i — | i — | i — | i — | i — | i 12.5 | ||||||||||||||||||||||
Heating
Oil and Gasoline | Gallons | i 8.4 | i 1.8 | i 1.6 | i 0.8 | i 2.0 | i 0.8 | i 0.9 | ||||||||||||||||||||||
Interest
Rate | USD | $ | i 140.1 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||
Interest
Rate | USD | $ | i 600.0 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||
Primary Risk Exposure | Unit
of Measure | AEP | AEP Texas | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||
Commodity: | ||||||||||||||||||||||||||||||
Power | MWhs | i 371.1 | i — | i 66.4 | i 40.9 | i 7.8 | i 15.2 | i 4.5 | ||||||||||||||||||||||
Natural
Gas | MMBtus | i 87.9 | i — | i 4.0 | i 2.3 | i — | i — | i 15.2 | ||||||||||||||||||||||
Heating
Oil and Gasoline | Gallons | i 7.4 | i 1.5 | i 1.4 | i 0.7 | i 1.8 | i 0.7 | i 0.8 | ||||||||||||||||||||||
Interest
Rate | USD | $ | i 37.7 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||
Interest
Rate | USD | $ | i 500.0 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||
Risk Management Contracts | Hedging
Contracts | Gross Amounts of Risk Management Assets/ Liabilities Recognized | Gross Amounts Offset in the Statement of Financial Position (b) | Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c) | ||||||||||||||||||||
Balance Sheet Location | Commodity (a) | Commodity
(a) | Interest Rate (a) | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Current Risk Management Assets | $ | i 337.0 | $ | i 16.5 | $ | i 1.9 | $ | i 355.4 | $ | ( i 168.7 | ) | $ | i 186.7 | |||||||||||
Long-term
Risk Management Assets | i 319.0 | i 10.0 | i 25.3 | i 354.3 | ( i 55.3 | ) | i 299.0 | |||||||||||||||||
Total
Assets | i 656.0 | i 26.5 | i 27.2 | i 709.7 | ( i 224.0 | ) | i 485.7 | |||||||||||||||||
Current
Risk Management Liabilities | i 213.4 | i 36.4 | i 0.2 | i 250.0 | ( i 174.7 | ) | i 75.3 | |||||||||||||||||
Long-term
Risk Management Liabilities | i 281.7 | i 87.4 | i — | i 369.1 | ( i 70.5 | ) | i 298.6 | |||||||||||||||||
Total
Liabilities | i 495.1 | i 123.8 | i 0.2 | i 619.1 | ( i 245.2 | ) | i 373.9 | |||||||||||||||||
Total
MTM Derivative Contract Net Assets (Liabilities) | $ | i 160.9 | $ | ( i 97.3 | ) | $ | i 27.0 | $ | i 90.6 | $ | i 21.2 | $ | i 111.8 | |||||||||||
Risk Management Contracts | Hedging
Contracts | Gross Amounts of Risk Management Assets/ Liabilities Recognized | Gross Amounts Offset in the Statement of Financial Position (b) | Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c) | ||||||||||||||||||||
Balance Sheet Location | Commodity (a) | Commodity
(a) | Interest Rate (a) | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Current Risk Management Assets | $ | i 397.5 | $ | i 28.5 | $ | i — | $ | i 426.0 | $ | ( i 263.2 | ) | $ | i 162.8 | |||||||||||
Long-term
Risk Management Assets | i 276.4 | i 16.0 | i — | i 292.4 | ( i 38.4 | ) | i 254.0 | |||||||||||||||||
Total
Assets | i 673.9 | i 44.5 | i — | i 718.4 | ( i 301.6 | ) | i 416.8 | |||||||||||||||||
Current
Risk Management Liabilities | i 293.8 | i 13.2 | i 2.0 | i 309.0 | ( i 254.0 | ) | i 55.0 | |||||||||||||||||
Long-term
Risk Management Liabilities | i 225.7 | i 56.1 | i 15.4 | i 297.2 | ( i 33.8 | ) | i 263.4 | |||||||||||||||||
Total
Liabilities | i 519.5 | i 69.3 | i 17.4 | i 606.2 | ( i 287.8 | ) | i 318.4 | |||||||||||||||||
Total
MTM Derivative Contract Net Assets (Liabilities) | $ | i 154.4 | $ | ( i 24.8 | ) | $ | ( i 17.4 | ) | $ | i 112.2 | $ | ( i 13.8 | ) | $ | i 98.4 | |||||||||
Risk Management | Gross Amounts Offset | Net
Amounts of Assets/Liabilities | ||||||||||
Contracts – | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position
(b) | Financial Position (c) | |||||||||
(in millions) | ||||||||||||
Current Risk Management Assets | $ | i — | $ | i — | $ | i — | ||||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i — | i — | i — | |||||||||
Current
Risk Management Liabilities | i 0.4 | ( i 0.1 | ) | i 0.3 | ||||||||
Long-term
Risk Management Liabilities | i — | i 0.1 | i 0.1 | |||||||||
Total
Liabilities | i 0.4 | i — | i 0.4 | |||||||||
Total
MTM Derivative Contract Net Liabilities | $ | ( i 0.4 | ) | $ | i — | $ | ( i 0.4 | ) | ||||
Risk Management | Gross Amounts Offset | Net Amounts of Assets/Liabilities | ||||||||||
Contracts
– | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position (b) | Financial Position (c) | |||||||||
(in
millions) | ||||||||||||
Current Risk Management Assets | $ | i — | $ | i — | $ | i — | ||||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i — | i — | i — | |||||||||
Current
Risk Management Liabilities | i 0.7 | ( i 0.5 | ) | i 0.2 | ||||||||
Long-term
Risk Management Liabilities | i — | i — | i — | |||||||||
Total
Liabilities | i 0.7 | ( i 0.5 | ) | i 0.2 | ||||||||
Total
MTM Derivative Contract Net Assets (Liabilities) | $ | ( i 0.7 | ) | $ | i 0.5 | $ | ( i 0.2 | ) | ||||
Risk Management | Gross Amounts Offset | Net
Amounts of Assets/Liabilities | ||||||||||
Contracts – | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position
(b) | Financial Position (c) | |||||||||
(in millions) | ||||||||||||
Current Risk Management Assets | $ | i 86.3 | $ | ( i 29.8 | ) | $ | i 56.5 | |||||
Long-term
Risk Management Assets | i 4.1 | ( i 3.9 | ) | i 0.2 | ||||||||
Total
Assets | i 90.4 | ( i 33.7 | ) | i 56.7 | ||||||||
Current
Risk Management Liabilities | i 32.3 | ( i 31.2 | ) | i 1.1 | ||||||||
Long-term
Risk Management Liabilities | i 4.4 | ( i 4.1 | ) | i 0.3 | ||||||||
Total
Liabilities | i 36.7 | ( i 35.3 | ) | i 1.4 | ||||||||
Total
MTM Derivative Contract Net Assets | $ | i 53.7 | $ | i 1.6 | $ | i 55.3 | ||||||
Risk Management | Gross Amounts Offset | Net Amounts of Assets/Liabilities | ||||||||||
Contracts
– | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position (b) | Financial Position (c) | |||||||||
(in
millions) | ||||||||||||
Current Risk Management Assets | $ | i 114.4 | $ | ( i 57.2 | ) | $ | i 57.2 | |||||
Long-term
Risk Management Assets | i 3.1 | ( i 2.2 | ) | i 0.9 | ||||||||
Total
Assets | i 117.5 | ( i 59.4 | ) | i 58.1 | ||||||||
Current
Risk Management Liabilities | i 56.7 | ( i 56.3 | ) | i 0.4 | ||||||||
Long-term
Risk Management Liabilities | i 2.4 | ( i 2.2 | ) | i 0.2 | ||||||||
Total
Liabilities | i 59.1 | ( i 58.5 | ) | i 0.6 | ||||||||
Total
MTM Derivative Contract Net Assets (Liabilities) | $ | i 58.4 | $ | ( i 0.9 | ) | $ | i 57.5 | |||||
Risk Management | Gross Amounts Offset | Net
Amounts of Assets/Liabilities | ||||||||||
Contracts – | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position
(b) | Financial Position (c) | |||||||||
(in millions) | ||||||||||||
Current Risk Management Assets | $ | i 30.5 | $ | ( i 20.0 | ) | $ | i 10.5 | |||||
Long-term
Risk Management Assets | i 2.7 | ( i 2.6 | ) | i 0.1 | ||||||||
Total
Assets | i 33.2 | ( i 22.6 | ) | i 10.6 | ||||||||
Current
Risk Management Liabilities | i 21.0 | ( i 20.8 | ) | i 0.2 | ||||||||
Long-term
Risk Management Liabilities | i 2.7 | ( i 2.7 | ) | i — | ||||||||
Total
Liabilities | i 23.7 | ( i 23.5 | ) | i 0.2 | ||||||||
Total
MTM Derivative Contract Net Assets | $ | i 9.5 | $ | i 0.9 | $ | i 10.4 | ||||||
Risk Management | Gross Amounts Offset | Net Amounts of Assets/Liabilities | ||||||||||
Contracts
– | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position (b) | Financial Position (c) | |||||||||
(in
millions) | ||||||||||||
Current Risk Management Assets | $ | i 50.4 | $ | ( i 41.8 | ) | $ | i 8.6 | |||||
Long-term
Risk Management Assets | i 2.0 | ( i 1.4 | ) | i 0.6 | ||||||||
Total
Assets | i 52.4 | ( i 43.2 | ) | i 9.2 | ||||||||
Current
Risk Management Liabilities | i 41.1 | ( i 40.8 | ) | i 0.3 | ||||||||
Long-term
Risk Management Liabilities | i 1.6 | ( i 1.5 | ) | i 0.1 | ||||||||
Total
Liabilities | i 42.7 | ( i 42.3 | ) | i 0.4 | ||||||||
Total
MTM Derivative Contract Net Assets (Liabilities) | $ | i 9.7 | $ | ( i 0.9 | ) | $ | i 8.8 | |||||
Risk Management | Gross Amounts Offset | Net
Amounts of Assets/Liabilities | ||||||||||
Contracts – | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position
(b) | Financial Position (c) | |||||||||
(in millions) | ||||||||||||
Current Risk Management Assets | $ | i — | $ | i — | $ | i — | ||||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i — | i — | i — | |||||||||
Current
Risk Management Liabilities | i 7.2 | i — | i 7.2 | |||||||||
Long-term
Risk Management Liabilities | i 105.7 | i — | i 105.7 | |||||||||
Total
Liabilities | i 112.9 | i — | i 112.9 | |||||||||
Total
MTM Derivative Contract Net Liabilities | $ | ( i 112.9 | ) | $ | i — | $ | ( i 112.9 | ) | ||||
Risk Management | Gross Amounts Offset | Net Amounts of Assets/Liabilities | ||||||||||
Contracts
– | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position (b) | Financial Position (c) | |||||||||
(in
millions) | ||||||||||||
Current Risk Management Assets | $ | i — | $ | i — | $ | i — | ||||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i — | i — | i — | |||||||||
Current
Risk Management Liabilities | i 6.4 | ( i 0.6 | ) | i 5.8 | ||||||||
Long-term
Risk Management Liabilities | i 93.8 | i — | i 93.8 | |||||||||
Total
Liabilities | i 100.2 | ( i 0.6 | ) | i 99.6 | ||||||||
Total
MTM Derivative Contract Net Assets (Liabilities) | $ | ( i 100.2 | ) | $ | i 0.6 | $ | ( i 99.6 | ) | ||||
Risk Management | Gross Amounts Offset | Net
Amounts of Assets/Liabilities | ||||||||||
Contracts – | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position
(b) | Financial Position (c) | |||||||||
(in millions) | ||||||||||||
Current Risk Management Assets | $ | i 21.9 | $ | ( i 0.2 | ) | $ | i 21.7 | |||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i 21.9 | ( i 0.2 | ) | i 21.7 | ||||||||
Current
Risk Management Liabilities | i 0.5 | ( i 0.2 | ) | i 0.3 | ||||||||
Long-term
Risk Management Liabilities | i — | i — | i — | |||||||||
Total
Liabilities | i 0.5 | ( i 0.2 | ) | i 0.3 | ||||||||
Total
MTM Derivative Contract Net Assets | $ | i 21.4 | $ | i — | $ | i 21.4 | ||||||
Risk Management | Gross Amounts Offset | Net Amounts of Assets/Liabilities | ||||||||||
Contracts
– | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position (b) | Financial Position (c) | |||||||||
(in
millions) | ||||||||||||
Current Risk Management Assets | $ | i 10.9 | $ | ( i 0.5 | ) | $ | i 10.4 | |||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i 10.9 | ( i 0.5 | ) | i 10.4 | ||||||||
Current
Risk Management Liabilities | i 1.7 | ( i 0.7 | ) | i 1.0 | ||||||||
Long-term
Risk Management Liabilities | i — | i — | i — | |||||||||
Total
Liabilities | i 1.7 | ( i 0.7 | ) | i 1.0 | ||||||||
Total
MTM Derivative Contract Net Assets | $ | i 9.2 | $ | i 0.2 | $ | i 9.4 | ||||||
Risk Management | Gross Amounts Offset | Net
Amounts of Assets/Liabilities | ||||||||||
Contracts – | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position
(b) | Financial Position (c) | |||||||||
(in millions) | ||||||||||||
Current Risk Management Assets | $ | i 9.8 | $ | ( i 0.4 | ) | $ | i 9.4 | |||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i 9.8 | ( i 0.4 | ) | i 9.4 | ||||||||
Current
Risk Management Liabilities | i 2.1 | ( i 0.4 | ) | i 1.7 | ||||||||
Long-term
Risk Management Liabilities | i 3.0 | i — | i 3.0 | |||||||||
Total
Liabilities | i 5.1 | ( i 0.4 | ) | i 4.7 | ||||||||
Total
MTM Derivative Contract Net Assets | $ | i 4.7 | $ | i — | $ | i 4.7 | ||||||
Risk Management | Gross Amounts Offset | Net Amounts of Assets/Liabilities | ||||||||||
Contracts
– | in the Statement of | Presented in the Statement of | ||||||||||
Balance Sheet Location | Commodity (a) | Financial Position (b) | Financial Position (c) | |||||||||
(in
millions) | ||||||||||||
Current Risk Management Assets | $ | i 5.6 | $ | ( i 0.8 | ) | $ | i 4.8 | |||||
Long-term
Risk Management Assets | i — | i — | i — | |||||||||
Total
Assets | i 5.6 | ( i 0.8 | ) | i 4.8 | ||||||||
Current
Risk Management Liabilities | i 1.5 | ( i 1.1 | ) | i 0.4 | ||||||||
Long-term
Risk Management Liabilities | i 2.2 | i — | i 2.2 | |||||||||
Total
Liabilities | i 3.7 | ( i 1.1 | ) | i 2.6 | ||||||||
Total
MTM Derivative Contract Net Assets | $ | i 1.9 | $ | i 0.3 | $ | i 2.2 | ||||||
(a) | Derivative
instruments within these categories are reported 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. |
Location of Gain (Loss) | AEP | AEP
Texas | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Vertically
Integrated Utilities Revenues | $ | i 0.5 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | ||||||||||||||
Generation
& Marketing Revenues | i 21.0 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||
Electric
Generation, Transmission and Distribution Revenues | i — | i — | i 0.2 | i 0.2 | i — | i — | i — | |||||||||||||||||||||
Purchased
Electricity for Resale | i 0.4 | i — | i 0.3 | i — | i — | i — | i — | |||||||||||||||||||||
Other
Operation | ( i 0.1 | ) | i — | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.1 | ) | i — | ||||||||||||||||
Maintenance | ( i 0.2 | ) | i — | i — | ( i 0.1 | ) | i — | i — | i — | |||||||||||||||||||
Regulatory
Assets (a) | ( i 4.8 | ) | ( i 0.2 | ) | i 0.2 | i — | ( i 2.6 | ) | ( i 0.1 | ) | ( i 1.6 | ) | ||||||||||||||||
Regulatory
Liabilities (a) | i 26.3 | i — | i 10.0 | i 3.2 | i — | i 4.3 | i 4.5 | |||||||||||||||||||||
Total
Gain (Loss) on Risk Management Contracts | $ | i 43.1 | $ | ( i 0.2 | ) | $ | i 10.6 | $ | i 3.2 | $ | ( i 2.7 | ) | $ | i 4.1 | $ | i 2.9 | ||||||||||||
Location of Gain
(Loss) | AEP | AEP Texas | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Vertically Integrated Utilities Revenues | $ | ( i 0.7 | ) | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||
Generation
& Marketing Revenues | i 19.3 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||
Electric
Generation, Transmission and Distribution Revenues | i — | i — | ( i 0.5 | ) | ( i 0.1 | ) | i — | i — | i — | |||||||||||||||||||
Purchased
Electricity for Resale | i 0.3 | i — | i 0.3 | i — | i — | i — | i — | |||||||||||||||||||||
Other
Operation | i 0.5 | i 0.1 | i 0.1 | i 0.1 | i 0.1 | i 0.1 | i 0.1 | |||||||||||||||||||||
Maintenance | i 0.6 | i 0.1 | i 0.1 | i 0.1 | i 0.1 | i 0.1 | i 0.1 | |||||||||||||||||||||
Regulatory
Assets (a) | ( i 14.0 | ) | i — | i — | ( i 3.5 | ) | ( i 9.3 | ) | ( i 0.6 | ) | ( i 0.6 | ) | ||||||||||||||||
Regulatory
Liabilities (a) | i 33.8 | i — | i 24.0 | i — | i — | i 3.9 | i 1.5 | |||||||||||||||||||||
Total
Gain (Loss) on Risk Management Contracts | $ | i 39.8 | $ | i 0.2 | $ | i 24.0 | $ | ( i 3.4 | ) | $ | ( i 9.1 | ) | $ | i 3.5 | $ | i 1.1 | ||||||||||||
Location of Gain
(Loss) | AEP | AEP Texas | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Vertically Integrated Utilities Revenues | $ | i 1.0 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | ||||||||||||||
Generation
& Marketing Revenues | i 27.2 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||
Electric
Generation, Transmission and Distribution Revenues | i — | i — | i 0.2 | i 0.5 | i — | i — | i 0.1 | |||||||||||||||||||||
Purchased
Electricity for Resale | i 1.6 | i — | i 1.4 | i 0.1 | i — | i — | i — | |||||||||||||||||||||
Other
Operation | ( i 0.6 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.2 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ||||||||||||||
Maintenance | ( i 0.6 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.1 | ) | i — | ( i 0.1 | ) | |||||||||||||||
Regulatory
Assets (a) | ( i 19.4 | ) | i 0.3 | i 0.4 | i 0.2 | ( i 19.8 | ) | i 0.9 | ( i 0.4 | ) | ||||||||||||||||||
Regulatory
Liabilities (a) | i 64.5 | i — | ( i 5.3 | ) | i 17.2 | i — | i 26.6 | i 22.9 | ||||||||||||||||||||
Total
Gain (Loss) on Risk Management Contracts | $ | i 73.7 | $ | i 0.1 | $ | ( i 3.5 | ) | $ | i 17.8 | $ | ( i 20.1 | ) | $ | i 27.4 | $ | i 22.4 | ||||||||||||
Location of Gain
(Loss) | AEP | AEP Texas | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Vertically Integrated Utilities Revenues | $ | ( i 9.4 | ) | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||
Generation
& Marketing Revenues | i 31.7 | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||
Electric
Generation, Transmission and Distribution Revenues | i — | i — | ( i 1.3 | ) | ( i 7.8 | ) | i — | i — | i 0.1 | |||||||||||||||||||
Purchased
Electricity for Resale | i 8.3 | i — | i 7.3 | i 0.8 | i — | i — | i — | |||||||||||||||||||||
Other
Operation | i 1.3 | i 0.3 | i 0.2 | i 0.2 | i 0.3 | i 0.2 | i 0.2 | |||||||||||||||||||||
Maintenance | i 1.5 | i 0.3 | i 0.3 | i 0.2 | i 0.3 | i 0.2 | i 0.2 | |||||||||||||||||||||
Regulatory
Assets (a) | i 29.2 | i — | i — | ( i 0.3 | ) | i 31.8 | ( i 0.6 | ) | ( i 1.7 | ) | ||||||||||||||||||
Regulatory
Liabilities (a) | i 206.2 | i — | i 127.3 | i 11.7 | i 0.6 | i 34.8 | i 7.6 | |||||||||||||||||||||
Total
Gain on Risk Management Contracts | $ | i 268.8 | $ | i 0.6 | $ | i 133.8 | $ | i 4.8 | $ | i 33.0 | $ | i 34.6 | $ | i 6.4 | ||||||||||||||
(a) | Represents
realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets. |
Carrying
Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | |||||||||||||||
(in millions) | ||||||||||||||||
Long-term Debt (a) | $ | ( i 521.2 | ) | $ | ( i 478.3 | ) | $ | ( i 25.1 | ) | $ | i 17.4 | |||||
(a) | Amounts
included on the balance sheets within Long-term Debt Due within One Year and Long-term Debt, respectively. |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions) | |||||||||||||||
Gain
(Loss) on Interest Rate Contracts: | |||||||||||||||
Gain (Loss) on Fair Value Hedging Instruments (a) | $ | i 13.2 | $ | ( i 6.3 | ) | $ | i 42.5 | $ | ( i 28.1 | ) | |||||
Gain
(Loss) on Fair Value Portion of Long-term Debt (a) | ( i 13.2 | ) | i 6.3 | ( i 42.5 | ) | i 28.1 | |||||||||
(a) | Gain
(Loss) is included in Interest Expense on the statements of income. |
Commodity | Interest Rate | Commodity | Interest Rate | |||||||||||||
(in
millions) | ||||||||||||||||
AOCI Gain (Loss) Net of Tax | $ | ( i 82.2 | ) | $ | ( i 16.7 | ) | (a) | $ | ( i 23.0 | ) | $ | ( i 12.6 | ) | |||
Portion
Expected to be Reclassed to Net Income During the Next Twelve Months | ( i 24.2 | ) | ( i 3.7 | ) | i 10.4 | ( i 1.1 | ) | |||||||||
(a) | Includes
$ i 6 million related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC. See “Sempra Renewables LLC” section of Note
14 for additional information. |
Interest Rate | ||||||||||||||||
Expected to be | Expected
to be | |||||||||||||||
Reclassified to | Reclassified to | |||||||||||||||
Net
Income During | Net Income During | |||||||||||||||
AOCI Gain (Loss) | the Next | AOCI Gain (Loss) | the Next | |||||||||||||
Company | Net
of Tax | Twelve Months | Net of Tax | Twelve Months | ||||||||||||
(in millions) | ||||||||||||||||
AEP Texas | $ | ( i 3.6 | ) | $ | ( i 1.1 | ) | $ | ( i 4.4 | ) | $ | ( i 1.1 | ) | ||||
APCo | i 1.1 | i 0.9 | i 1.8 | i 0.9 | ||||||||||||
I&M | ( i 10.3 | ) | ( i 1.6 | ) | ( i 11.5 | ) | ( i 1.6 | ) | ||||||||
OPCo | i — | i — | i 1.0 | i 1.0 | ||||||||||||
PSO | i 1.4 | i 1.0 | i 2.1 | i 1.0 | ||||||||||||
SWEPCo | ( i 2.2 | ) | ( i 1.5 | ) | ( i 3.3 | ) | ( i 1.5 | ) | ||||||||
Liabilities for | Additional | |||||||||||
Contracts with Cross | Settlement | |||||||||||
Default
Provisions | Liability if Cross | |||||||||||
Prior to Contractual | Amount of Cash | Default Provision | ||||||||||
Company | Netting
Arrangements | Collateral Posted | is Triggered | |||||||||
(in millions) | ||||||||||||
AEP | $ | i 261.0 | $ | i 3.4 | $ | i 230.7 | ||||||
APCo | i 3.9 | i — | i 0.2 | |||||||||
I&M | i 2.3 | i — | i 0.1 | |||||||||
SWEPCo | i 4.7 | i — | i 2.8 | |||||||||
Liabilities for | Additional | |||||||||||
Contracts with Cross | Settlement | |||||||||||
Default
Provisions | Liability if Cross | |||||||||||
Prior to Contractual | Amount of Cash | Default Provision | ||||||||||
Company | Netting
Arrangements | Collateral Posted | is Triggered | |||||||||
(in millions) | ||||||||||||
AEP | $ | i 225.5 | $ | i 1.8 | $ | i 181.0 | ||||||
APCo | i 0.9 | i — | i — | |||||||||
I&M | i 0.5 | i — | i — | |||||||||
SWEPCo | i 2.3 | i — | i 2.3 | |||||||||
Company | Book Value | Fair Value | Book Value | Fair Value | ||||||||||||
(in
millions) | ||||||||||||||||
AEP (a) | $ | i 25,881.2 | $ | i 29,729.1 | $ | i 23,346.7 | $ | i 24,093.9 | ||||||||
AEP
Texas | i 4,146.5 | i 4,631.5 | i 3,881.3 | i 3,964.6 | ||||||||||||
AEPTCo | i 3,511.9 | i 3,984.9 | i 2,823.0 | i 2,782.4 | ||||||||||||
APCo | i 4,362.9 | i 5,370.2 | i 4,062.6 | i 4,473.3 | ||||||||||||
I&M | i 3,031.5 | i 3,497.3 | i 3,035.4 | i 3,070.2 | ||||||||||||
OPCo | i 2,113.9 | i 2,618.5 | i 1,716.6 | i 1,919.7 | ||||||||||||
PSO | i 1,386.4 | i 1,632.9 | i 1,287.0 | i 1,361.9 | ||||||||||||
SWEPCo | i 2,656.9 | i 2,983.0 | i 2,713.4 | i 2,670.2 | ||||||||||||
(a) | The
fair value amount includes debt related to AEP’s Equity Units issued in March 2019 and has a fair value of $ i 887 million as of September 30, 2019. See “Equity Units” section of Note 13 for additional information. |
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Other
Temporary Investments | Cost | Gains | Losses | Value | ||||||||||||
(in millions) | ||||||||||||||||
Restricted Cash and Other Cash Deposits (a) | $ | i 160.1 | $ | i — | $ | i — | $ | i 160.1 | ||||||||
Fixed
Income Securities – Mutual Funds (b) | i 133.4 | i — | ( i 0.2 | ) | i 133.2 | |||||||||||
Equity
Securities – Mutual Funds | i 28.5 | i 17.6 | i — | i 46.1 | ||||||||||||
Total
Other Temporary Investments | $ | i 322.0 | $ | i 17.6 | $ | ( i 0.2 | ) | $ | i 339.4 | |||||||
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Other
Temporary Investments | Cost | Gains | Losses | Value | ||||||||||||
(in millions) | ||||||||||||||||
Restricted Cash and Other Cash Deposits (a) | $ | i 230.6 | $ | i — | $ | i — | $ | i 230.6 | ||||||||
Fixed
Income Securities – Mutual Funds (b) | i 106.6 | i — | ( i 2.3 | ) | i 104.3 | |||||||||||
Equity
Securities – Mutual Funds | i 17.8 | i 16.4 | i — | i 34.2 | ||||||||||||
Total
Other Temporary Investments | $ | i 355.0 | $ | i 16.4 | $ | ( i 2.3 | ) | $ | i 369.1 | |||||||
(a) | Primarily
represents amounts held for the repayment of debt. |
(b) | Primarily short and intermediate maturities which may be sold and do not contain maturity dates. |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Proceeds from Investment Sales | $ | i 2.8 | $ | i — | $ | i 2.8 | $ | i — | |||||||
Purchases
of Investments | i 26.9 | i 0.8 | i 35.8 | i 2.2 | |||||||||||
Gross
Realized Gains on Investment Sales | i — | i — | i — | i — | |||||||||||
Gross
Realized Losses on Investment Sales | i — | i — | i — | i — | |||||||||||
• | Acceptable investments (rated investment grade or above when purchased). |
• | Maximum
percentage invested in a specific type of investment. |
• | Prohibition of investment in obligations of AEP, I&M or their affiliates. |
• | Withdrawals permitted only for payment of decommissioning costs and trust expenses. |
Gross | Other-Than- | Gross | Other-Than- | ||||||||||||||||||||
Fair | Unrealized | Temporary | Fair | Unrealized | Temporary | ||||||||||||||||||
Value | Gains | Impairments | Value | Gains | Impairments | ||||||||||||||||||
(in
millions) | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | i 17.4 | $ | i — | $ | i — | $ | i 22.5 | $ | i — | $ | i — | |||||||||||
Fixed
Income Securities: | |||||||||||||||||||||||
United States Government | i 1,047.4 | i 67.8 | ( i 5.8 | ) | i 996.1 | i 26.7 | ( i 7.1 | ) | |||||||||||||||
Corporate
Debt | i 68.6 | i 6.1 | ( i 1.7 | ) | i 52.4 | i 1.1 | ( i 1.9 | ) | |||||||||||||||
State
and Local Government | i 7.5 | i 0.7 | ( i 0.2 | ) | i 8.6 | i 0.6 | ( i 0.2 | ) | |||||||||||||||
Subtotal
Fixed Income Securities | i 1,123.5 | i 74.6 | ( i 7.7 | ) | i 1,057.1 | i 28.4 | ( i 9.2 | ) | |||||||||||||||
Equity
Securities - Domestic (a) | i 1,694.3 | i 1,037.7 | i — | i 1,395.3 | i 766.3 | i — | |||||||||||||||||
Spent
Nuclear Fuel and Decommissioning Trusts | $ | i 2,835.2 | $ | i 1,112.3 | $ | ( i 7.7 | ) | $ | i 2,474.9 | $ | i 794.7 | $ | ( i 9.2 | ) | |||||||||
(a) | Amount
reported as Gross Unrealized Gains includes unrealized gains of $ i 1 billion and $ i 784
million and unrealized losses of $ i 9 million and $ i 18
million as of September 30, 2019 and December 31, 2018, respectively. AEP adopted ASU 2016-01 during the first quarter of 2018 by means of a modified retrospective approach. Due to the adoption of the ASU, Other-Than-Temporary Impairments are no longer applicable to Equity Securities with readily determinable fair values. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in
millions) | ||||||||||||||||
Proceeds from Investment Sales | $ | i 671.9 | $ | i 513.1 | $ | i 871.4 | $ | i 1,550.9 | ||||||||
Purchases
of Investments | i 689.1 | i 521.2 | i 915.7 | i 1,589.0 | ||||||||||||
Gross
Realized Gains on Investment Sales | i 10.9 | i 3.9 | i 26.6 | i 27.7 | ||||||||||||
Gross
Realized Losses on Investment Sales | i 7.1 | i 3.5 | i 15.1 | i 22.2 | ||||||||||||
Fair
Value of Fixed | |||
Income Securities | |||
(in millions) | |||
Within 1 year | $ | i 334.9 | |
After
1 year through 5 years | i 390.9 | ||
After 5 years through 10 years | i 199.2 | ||
After
10 years | i 198.5 | ||
Total | $ | i 1,123.5 | |
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Other
Temporary Investments | ||||||||||||||||||||
Restricted Cash and Other Cash Deposits (a) | $ | i 152.9 | $ | i — | $ | i — | $ | i 7.2 | $ | i 160.1 | ||||||||||
Fixed
Income Securities – Mutual Funds | i 133.2 | i — | i — | i — | i 133.2 | |||||||||||||||
Equity
Securities – Mutual Funds (b) | i 46.1 | i — | i — | i — | i 46.1 | |||||||||||||||
Total
Other Temporary Investments | i 332.2 | i — | i — | i 7.2 | i 339.4 | |||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (d) | i 5.6 | i 228.2 | i 407.7 | ( i 195.3 | ) | i 446.2 | ||||||||||||||
Cash
Flow Hedges: | ||||||||||||||||||||
Commodity Hedges (c) | i — | i 17.6 | i 2.9 | ( i 8.2 | ) | i 12.3 | ||||||||||||||
Interest
Rate Hedges | i — | i 1.9 | i — | i — | i 1.9 | |||||||||||||||
Fair
Value Hedges | i — | i 25.3 | i — | i — | i 25.3 | |||||||||||||||
Total
Risk Management Assets | i 5.6 | i 273.0 | i 410.6 | ( i 203.5 | ) | i 485.7 | ||||||||||||||
Spent
Nuclear Fuel and Decommissioning Trusts | ||||||||||||||||||||
Cash and Cash Equivalents (e) | i 9.4 | i — | i — | i 8.0 | i 17.4 | |||||||||||||||
Fixed
Income Securities: | ||||||||||||||||||||
United States Government | i — | i 1,047.4 | i — | i — | i 1,047.4 | |||||||||||||||
Corporate
Debt | i — | i 68.6 | i — | i — | i 68.6 | |||||||||||||||
State
and Local Government | i — | i 7.5 | i — | i — | i 7.5 | |||||||||||||||
Subtotal
Fixed Income Securities | i — | i 1,123.5 | i — | i — | i 1,123.5 | |||||||||||||||
Equity
Securities – Domestic (b) | i 1,694.3 | i — | i — | i — | i 1,694.3 | |||||||||||||||
Total
Spent Nuclear Fuel and Decommissioning Trusts | i 1,703.7 | i 1,123.5 | i — | i 8.0 | i 2,835.2 | |||||||||||||||
Total
Assets | $ | i 2,041.5 | $ | i 1,396.5 | $ | i 410.6 | $ | ( i 188.3 | ) | $ | i 3,660.3 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (d) | $ | i 5.1 | $ | i 243.9 | $ | i 231.6 | $ | ( i 216.5 | ) | $ | i 264.1 | |||||||||
Cash
Flow Hedges: | ||||||||||||||||||||
Commodity Hedges (c) | i — | i 49.1 | i 68.7 | ( i 8.2 | ) | i 109.6 | ||||||||||||||
Fair
Value Hedges | i — | i 0.2 | i — | i — | i 0.2 | |||||||||||||||
Total
Risk Management Liabilities | $ | i 5.1 | $ | i 293.2 | $ | i 300.3 | $ | ( i 224.7 | ) | $ | i 373.9 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Other
Temporary Investments | ||||||||||||||||||||
Restricted Cash and Other Cash Deposits (a) | $ | i 221.5 | $ | i — | $ | i — | $ | i 9.1 | $ | i 230.6 | ||||||||||
Fixed
Income Securities – Mutual Funds | i 104.3 | i — | i — | i — | i 104.3 | |||||||||||||||
Equity
Securities – Mutual Funds (b) | i 34.2 | i — | i — | i — | i 34.2 | |||||||||||||||
Total
Other Temporary Investments | i 360.0 | i — | i — | i 9.1 | i 369.1 | |||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (f) | i 3.8 | i 326.5 | i 340.9 | ( i 288.5 | ) | i 382.7 | ||||||||||||||
Cash
Flow Hedges: | ||||||||||||||||||||
Commodity Hedges (c) | i — | i 24.1 | i 12.7 | ( i 2.7 | ) | i 34.1 | ||||||||||||||
Total
Risk Management Assets | i 3.8 | i 350.6 | i 353.6 | ( i 291.2 | ) | i 416.8 | ||||||||||||||
Spent
Nuclear Fuel and Decommissioning Trusts | ||||||||||||||||||||
Cash and Cash Equivalents (e) | i 12.3 | i — | i — | i 10.2 | i 22.5 | |||||||||||||||
Fixed
Income Securities: | ||||||||||||||||||||
United States Government | i — | i 996.1 | i — | i — | i 996.1 | |||||||||||||||
Corporate
Debt | i — | i 52.4 | i — | i — | i 52.4 | |||||||||||||||
State
and Local Government | i — | i 8.6 | i — | i — | i 8.6 | |||||||||||||||
Subtotal
Fixed Income Securities | i — | i 1,057.1 | i — | i — | i 1,057.1 | |||||||||||||||
Equity
Securities – Domestic (b) | i 1,395.3 | i — | i — | i — | i 1,395.3 | |||||||||||||||
Total
Spent Nuclear Fuel and Decommissioning Trusts | i 1,407.6 | i 1,057.1 | i — | i 10.2 | i 2,474.9 | |||||||||||||||
Total
Assets | $ | i 1,771.4 | $ | i 1,407.7 | $ | i 353.6 | $ | ( i 271.9 | ) | $ | i 3,260.8 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (f) | $ | i 4.2 | $ | i 327.0 | $ | i 185.6 | $ | ( i 274.7 | ) | $ | i 242.1 | |||||||||
Cash
Flow Hedges: | ||||||||||||||||||||
Commodity Hedges (c) | i — | i 24.8 | i 36.8 | ( i 2.7 | ) | i 58.9 | ||||||||||||||
Fair
Value Hedges | i — | i 17.4 | i — | i — | i 17.4 | |||||||||||||||
Total
Risk Management Liabilities | $ | i 4.2 | $ | i 369.2 | $ | i 222.4 | $ | ( i 277.4 | ) | $ | i 318.4 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Restricted
Cash for Securitized Funding | $ | i 114.3 | $ | i — | $ | i — | $ | i — | $ | i 114.3 | ||||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) | $ | i — | $ | i 0.4 | $ | i — | $ | i — | $ | i 0.4 | ||||||||||
Level 1 | Level 2 | Level
3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Restricted
Cash for Securitized Funding | $ | i 156.7 | $ | i — | $ | i — | $ | i — | $ | i 156.7 | ||||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) | $ | i — | $ | i 0.7 | $ | i — | $ | ( i 0.5 | ) | $ | i 0.2 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Restricted
Cash for Securitized Funding | $ | i 17.1 | $ | i — | $ | i — | $ | i — | $ | i 17.1 | ||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | i — | i 31.4 | i 57.3 | ( i 32.0 | ) | i 56.7 | ||||||||||||||
Total
Assets | $ | i 17.1 | $ | i 31.4 | $ | i 57.3 | $ | ( i 32.0 | ) | $ | i 73.8 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 33.2 | $ | i 1.8 | $ | ( i 33.6 | ) | $ | i 1.4 | |||||||||
Level 1 | Level 2 | Level
3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Restricted
Cash for Securitized Funding | $ | i 25.6 | $ | i — | $ | i — | $ | i — | $ | i 25.6 | ||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | i 0.1 | i 59.1 | i 58.3 | ( i 59.4 | ) | i 58.1 | ||||||||||||||
Total
Assets | $ | i 25.7 | $ | i 59.1 | $ | i 58.3 | $ | ( i 59.4 | ) | $ | i 83.7 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i 0.2 | $ | i 58.4 | $ | i 0.5 | $ | ( i 58.5 | ) | $ | i 0.6 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 21.9 | $ | i 10.2 | $ | ( i 21.5 | ) | $ | i 10.6 | |||||||||
Spent
Nuclear Fuel and Decommissioning Trusts | ||||||||||||||||||||
Cash and Cash Equivalents (e) | i 9.4 | i — | i — | i 8.0 | i 17.4 | |||||||||||||||
Fixed
Income Securities: | ||||||||||||||||||||
United States Government | i — | i 1,047.4 | i — | i — | i 1,047.4 | |||||||||||||||
Corporate
Debt | i — | i 68.6 | i — | i — | i 68.6 | |||||||||||||||
State
and Local Government | i — | i 7.5 | i — | i — | i 7.5 | |||||||||||||||
Subtotal
Fixed Income Securities | i — | i 1,123.5 | i — | i — | i 1,123.5 | |||||||||||||||
Equity
Securities - Domestic (b) | i 1,694.3 | i — | i — | i — | i 1,694.3 | |||||||||||||||
Total
Spent Nuclear Fuel and Decommissioning Trusts | i 1,703.7 | i 1,123.5 | i — | i 8.0 | i 2,835.2 | |||||||||||||||
Total
Assets | $ | i 1,703.7 | $ | i 1,145.4 | $ | i 10.2 | $ | ( i 13.5 | ) | $ | i 2,845.8 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 21.3 | $ | i 1.3 | $ | ( i 22.4 | ) | $ | i 0.2 | |||||||||
Level 1 | Level 2 | Level
3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 42.1 | $ | i 10.3 | $ | ( i 43.2 | ) | $ | i 9.2 | |||||||||
Spent
Nuclear Fuel and Decommissioning Trusts | ||||||||||||||||||||
Cash and Cash Equivalents (e) | i 12.3 | i — | i — | i 10.2 | i 22.5 | |||||||||||||||
Fixed
Income Securities: | ||||||||||||||||||||
United States Government | i — | i 996.1 | i — | i — | i 996.1 | |||||||||||||||
Corporate
Debt | i — | i 52.4 | i — | i — | i 52.4 | |||||||||||||||
State
and Local Government | i — | i 8.6 | i — | i — | i 8.6 | |||||||||||||||
Subtotal
Fixed Income Securities | i — | i 1,057.1 | i — | i — | i 1,057.1 | |||||||||||||||
Equity
Securities - Domestic (b) | i 1,395.3 | i — | i — | i — | i 1,395.3 | |||||||||||||||
Total
Spent Nuclear Fuel and Decommissioning Trusts | i 1,407.6 | i 1,057.1 | i — | i 10.2 | i 2,474.9 | |||||||||||||||
Total
Assets | $ | i 1,407.6 | $ | i 1,099.2 | $ | i 10.3 | $ | ( i 33.0 | ) | $ | i 2,484.1 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i 0.1 | $ | i 41.2 | $ | i 1.4 | $ | ( i 42.3 | ) | $ | i 0.4 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Liabilities: | (in millions) | |||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 0.4 | $ | i 112.5 | $ | i — | $ | i 112.9 | ||||||||||
Level 1 | Level 2 | Level
3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Restricted
Cash for Securitized Funding | $ | i 27.6 | $ | i — | $ | i — | $ | i — | $ | i 27.6 | ||||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 0.8 | $ | i 99.4 | $ | ( i 0.6 | ) | $ | i 99.6 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i — | $ | i 22.0 | $ | ( i 0.3 | ) | $ | i 21.7 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 0.2 | $ | i 0.4 | $ | ( i 0.3 | ) | $ | i 0.3 | |||||||||
Level 1 | Level 2 | Level
3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i — | $ | i 10.8 | $ | ( i 0.4 | ) | $ | i 10.4 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 0.3 | $ | i 1.3 | $ | ( i 0.6 | ) | $ | i 1.0 | |||||||||
Level 1 | Level
2 | Level 3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i — | $ | i 9.8 | $ | ( i 0.4 | ) | $ | i 9.4 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 0.2 | $ | i 4.9 | $ | ( i 0.4 | ) | $ | i 4.7 | |||||||||
Level 1 | Level 2 | Level
3 | Other | Total | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Risk
Management Assets | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i — | $ | i 5.6 | $ | ( i 0.8 | ) | $ | i 4.8 | |||||||||
Liabilities: | ||||||||||||||||||||
Risk
Management Liabilities | ||||||||||||||||||||
Risk Management Commodity Contracts (c) (g) | $ | i — | $ | i 0.4 | $ | i 3.3 | $ | ( i 1.1 | ) | $ | i 2.6 | |||||||||
(a) | Amounts
in “Other’’ column primarily represent cash deposits in bank accounts with financial institutions or third-parties. Level 1 and Level 2 amounts primarily represent investments in money market funds. |
(b) | Amounts represent publicly traded equity securities and equity-based mutual funds. |
(c) | 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.’’ |
(d) | The
September 30, 2019 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 2 matures $( i 6) million
in 2019, $( i 8) million in periods 2020-2022 and $( i 1)
million in periods 2025-2032; Level 3 matures $ i 40 million in 2019, $ i 114
million in periods 2020-2022, $ i 26 million in periods 2023-2024 and $( i 4)
million in periods 2025-2032. Risk management commodity contracts are substantially comprised of power contracts. |
(e) | Amounts in “Other’’ column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds. |
(f) | The December 31, 2018 maturity of the net fair value of risk management contracts prior to cash collateral,
assets/(liabilities), is as follows: Level 2 matures $( i 4) million in 2019, $ i 1
million in periods 2020-2022, $ i 1 million in periods 2023-2024 and $ i 1
million in periods 2025-2032; Level 3 matures $ i 108 million in 2019, $ i 37
million in periods 2020-2022, $ i 23 million in periods 2023-2024 and $( i 12)
million in periods 2025-2032. Risk management commodity contracts are substantially comprised of power contracts. |
(g) | Substantially comprised of power contracts for the Registrant Subsidiaries. |
Three
Months Ended September 30, 2019 | AEP | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | i 112.7 | $ | i 68.5 | $ | i 12.3 | $ | ( i 111.5 | ) | $ | i 27.8 | $ | i 8.5 | |||||||||||
Realized
Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | i 30.2 | i 13.8 | i 3.1 | i — | i 4.1 | i 3.6 | ||||||||||||||||||
Unrealized
Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | i 2.9 | i — | i — | i — | i — | i — | ||||||||||||||||||
Realized
and Unrealized Gains (Losses) Included in Other Comprehensive Income | i 22.1 | i — | i — | i — | i — | i — | ||||||||||||||||||
Settlements | ( i 67.4 | ) | ( i 28.1 | ) | ( i 7.2 | ) | i 1.1 | ( i 11.2 | ) | ( i 6.7 | ) | |||||||||||||
Transfers
into Level 3 (c) (d) | i 3.5 | i — | i — | i — | i — | i — | ||||||||||||||||||
Transfers
out of Level 3 (d) | i 6.6 | i — | i — | i — | i — | i — | ||||||||||||||||||
Changes
in Fair Value Allocated to Regulated Jurisdictions (e) | ( i 0.3 | ) | i 1.3 | i 0.7 | ( i 2.1 | ) | i 0.9 | ( i 0.5 | ) | |||||||||||||||
Balance
as of September 30, 2019 | $ | i 110.3 | $ | i 55.5 | $ | i 8.9 | $ | ( i 112.5 | ) | $ | i 21.6 | $ | i 4.9 | |||||||||||
Three
Months Ended September 30, 2018 | AEP | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | i 172.3 | $ | i 60.0 | $ | i 13.2 | $ | ( i 86.9 | ) | $ | i 24.3 | $ | i 4.9 | |||||||||||
Realized
Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | i 19.9 | i 9.0 | i 1.9 | i — | i 3.7 | i 1.7 | ||||||||||||||||||
Unrealized
Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | i 1.5 | i — | i — | i — | i — | i — | ||||||||||||||||||
Realized
and Unrealized Gains (Losses) Included in Other Comprehensive Income | i 10.4 | i — | i — | i — | i — | i — | ||||||||||||||||||
Settlements | ( i 56.0 | ) | ( i 19.8 | ) | ( i 5.5 | ) | i 0.6 | ( i 10.8 | ) | ( i 2.7 | ) | |||||||||||||
Transfers
into Level 3 (c) (d) | i 2.3 | i — | i — | i — | i — | i — | ||||||||||||||||||
Transfers
out of Level 3 (d) | ( i 1.2 | ) | i — | i — | i — | i — | i — | |||||||||||||||||
Changes
in Fair Value Allocated to Regulated Jurisdictions (e) | i 12.0 | i 17.3 | ( i 0.2 | ) | ( i 8.9 | ) | i 0.4 | ( i 0.4 | ) | |||||||||||||||
Balance
as of September 30, 2018 | $ | i 161.2 | $ | i 66.5 | $ | i 9.4 | $ | ( i 95.2 | ) | $ | i 17.6 | $ | i 3.5 | |||||||||||
Nine
Months Ended September 30, 2019 | AEP | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | i 131.2 | $ | i 57.8 | $ | i 8.9 | $ | ( i 99.4 | ) | $ | i 9.5 | $ | i 2.3 | |||||||||||
Realized
Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | i 14.6 | ( i 14.1 | ) | i 4.6 | ( i 0.9 | ) | i 13.5 | i 6.0 | ||||||||||||||||
Unrealized
Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | i 32.9 | i — | i — | i — | i — | i — | ||||||||||||||||||
Realized
and Unrealized Gains (Losses) Included in Other Comprehensive Income | ( i 42.8 | ) | i — | i — | i — | i — | i — | |||||||||||||||||
Settlements | ( i 114.6 | ) | ( i 41.9 | ) | ( i 12.6 | ) | i 4.6 | ( i 23.0 | ) | ( i 10.1 | ) | |||||||||||||
Transfers
into Level 3 (c) (d) | i 0.4 | i — | i — | i — | i — | i — | ||||||||||||||||||
Transfers
out of Level 3 (d) | i 1.4 | ( i 0.7 | ) | ( i 0.4 | ) | i — | i — | i — | ||||||||||||||||
Changes
in Fair Value Allocated to Regulated Jurisdictions (e) | i 87.2 | i 54.4 | i 8.4 | ( i 16.8 | ) | i 21.6 | i 6.7 | |||||||||||||||||
Balance
as of September 30, 2019 | $ | i 110.3 | $ | i 55.5 | $ | i 8.9 | $ | ( i 112.5 | ) | $ | i 21.6 | $ | i 4.9 | |||||||||||
Nine
Months Ended September 30, 2018 | AEP | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | i 40.3 | $ | i 24.7 | $ | i 7.6 | $ | ( i 132.4 | ) | $ | i 6.2 | $ | i 5.9 | |||||||||||
Realized
Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | i 150.9 | i 104.4 | i 14.7 | i 1.3 | i 18.1 | ( i 4.8 | ) | |||||||||||||||||
Unrealized
Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | i 9.5 | i — | i — | i — | i — | i — | ||||||||||||||||||
Realized
and Unrealized Gains (Losses) Included in Other Comprehensive Income | i 16.4 | i — | i — | i — | i — | i — | ||||||||||||||||||
Settlements | ( i 212.3 | ) | ( i 128.3 | ) | ( i 21.9 | ) | i 3.0 | ( i 24.3 | ) | ( i 1.3 | ) | |||||||||||||
Transfers
into Level 3 (c) (d) | i 16.5 | i — | i — | i — | i — | i — | ||||||||||||||||||
Transfers
out of Level 3 (d) | ( i 2.5 | ) | i — | ( i 0.3 | ) | i — | i — | i — | ||||||||||||||||
Changes
in Fair Value Allocated to Regulated Jurisdictions (e) | i 142.4 | i 65.7 | i 9.3 | i 32.9 | i 17.6 | i 3.7 | ||||||||||||||||||
Balance
as of September 30, 2018 | $ | i 161.2 | $ | i 66.5 | $ | i 9.4 | $ | ( i 95.2 | ) | $ | i 17.6 | $ | i 3.5 | |||||||||||
(a) | Included
in revenues on the statements of income. |
(b) | Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract. |
(c) | Represents existing assets or liabilities that were previously categorized as Level 2. |
(d) | Transfers
are recognized based on their value at the beginning of the reporting period that the transfer occurred. |
(e) | Relates to the net gains (losses) of those contracts that are not reflected on the statements of income. These net gains (losses) are recorded as regulatory assets/liabilities or accounts payable. |
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input | Low | High | Average | |||||||||||||||||
(in
millions) | |||||||||||||||||||||||
Energy Contracts | $ | i 298.8 | $ | i 286.8 | Discounted
Cash Flow | Forward Market Price (a) | $ | ( i 0.05 | ) | $ | i 180.10 | $ | i 31.34 | ||||||||||
Natural
Gas Contracts | i — | i 4.5 | Discounted
Cash Flow | Forward Market Price (b) | i 1.96 | i 2.62 | i 2.25 | ||||||||||||||||
FTRs | i 111.8 | i 9.0 | Discounted
Cash Flow | Forward Market Price (a) | ( i 10.40 | ) | i 11.65 | i 0.54 | |||||||||||||||
Total | $ | i 410.6 | $ | i 300.3 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input | Low | High | Average | |||||||||||||||||
(in
millions) | |||||||||||||||||||||||
Energy Contracts | $ | i 257.1 | $ | i 212.5 | Discounted
Cash Flow | Forward Market Price (a) | $ | ( i 0.05 | ) | $ | i 176.57 | $ | i 33.07 | ||||||||||
Natural
Gas Contracts | i — | i 2.5 | Discounted
Cash Flow | Forward Market Price (b) | i 2.18 | i 3.54 | i 2.47 | ||||||||||||||||
FTRs | i 96.5 | i 7.4 | Discounted
Cash Flow | Forward Market Price (a) | ( i 11.68 | ) | i 17.79 | i 1.09 | |||||||||||||||
Total | $ | i 353.6 | $ | i 222.4 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Energy
Contracts | $ | i 3.6 | $ | i 1.1 | Discounted
Cash Flow | Forward Market Price | $ | i 12.93 | $ | i 59.25 | $ | i 31.28 | |||||||||||
FTRs | i 53.7 | i 0.7 | Discounted
Cash Flow | Forward Market Price | ( i 0.91 | ) | i 10.14 | i 1.63 | |||||||||||||||
Total | $ | i 57.3 | $ | i 1.8 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Energy
Contracts | $ | i 2.4 | $ | i 0.5 | Discounted
Cash Flow | Forward Market Price | $ | i 16.82 | $ | i 62.65 | $ | i 37.00 | |||||||||||
FTRs | i 55.9 | i — | Discounted
Cash Flow | Forward Market Price | i 0.10 | i 15.16 | i 3.27 | ||||||||||||||||
Total | $ | i 58.3 | $ | i 0.5 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Energy
Contracts | $ | i 2.2 | $ | i 0.7 | Discounted
Cash Flow | Forward Market Price | $ | i 12.93 | $ | i 59.25 | $ | i 31.28 | |||||||||||
FTRs | i 8.0 | i 0.6 | Discounted
Cash Flow | Forward Market Price | ( i 1.76 | ) | i 7.26 | i 0.87 | |||||||||||||||
Total | $ | i 10.2 | $ | i 1.3 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Energy
Contracts | $ | i 1.4 | $ | i 0.9 | Discounted
Cash Flow | Forward Market Price | $ | i 16.82 | $ | i 62.65 | $ | i 37.00 | |||||||||||
FTRs | i 8.9 | i 0.5 | Discounted
Cash Flow | Forward Market Price | ( i 2.11 | ) | i 6.21 | i 1.06 | |||||||||||||||
Total | $ | i 10.3 | $ | i 1.4 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Energy
Contracts | $ | i — | $ | i 112.5 | Discounted
Cash Flow | Forward Market Price | $ | i 27.47 | $ | i 65.81 | $ | i 40.30 | |||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Energy
Contracts | $ | i — | $ | i 99.4 | Discounted
Cash Flow | Forward Market Price | $ | i 26.29 | $ | i 62.74 | $ | i 42.50 | |||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
FTRs | $ | i 22.0 | $ | i 0.4 | Discounted
Cash Flow | Forward Market Price | $ | ( i 6.87 | ) | $ | i 0.93 | $ | ( i 2.19 | ) | |||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input
(a) | Low | High | Average | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
FTRs | $ | i 10.8 | $ | i 1.3 | Discounted
Cash Flow | Forward Market Price | $ | ( i 11.68 | ) | $ | i 10.30 | $ | ( i 1.40 | ) | |||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input | Low | High | Average | |||||||||||||||||
(in
millions) | |||||||||||||||||||||||
Natural Gas Contracts | $ | i — | $ | i 4.5 | Discounted
Cash Flow | Forward Market Price (b) | $ | i 1.96 | $ | i 2.62 | $ | i 2.25 | |||||||||||
FTRs | i 9.8 | i 0.4 | Discounted
Cash Flow | Forward Market Price (a) | ( i 6.87 | ) | i 0.93 | ( i 2.19 | ) | ||||||||||||||
Total | $ | i 9.8 | $ | i 4.9 | |||||||||||||||||||
Significant | Input/Range | ||||||||||||||||||||||
Fair
Value | Valuation | Unobservable | Weighted | ||||||||||||||||||||
Assets | Liabilities | Technique | Input | Low | High | Average | |||||||||||||||||
(in
millions) | |||||||||||||||||||||||
Natural Gas Contracts | $ | i — | $ | i 2.5 | Discounted
Cash Flow | Forward Market Price (b) | $ | i 2.18 | $ | i 3.54 | $ | i 2.47 | |||||||||||
FTRs | i 5.6 | i 0.8 | Discounted
Cash Flow | Forward Market Price (a) | ( i 11.68 | ) | i 10.30 | ( i 1.40 | ) | ||||||||||||||
Total | $ | i 5.6 | $ | i 3.3 | |||||||||||||||||||
(a) | Represents
market prices in dollars per MWh. |
(b) | Represents market prices in dollars per MMBtu. |
Significant Unobservable Input | Position | Change in Input | Impact on Fair Value Measurement | |||
Forward Market Price | Buy | Increase
(Decrease) | Higher (Lower) | |||
Forward Market Price | Sell | Increase (Decrease) | Lower (Higher) | |||
Registrant
(Jurisdiction) | Change in Tax Rate | Excess ADIT Subject to Normalization Requirements | Excess ADIT Not Subject to Normalization Requirements | |||
AEP Texas (Texas-Distribution) | Order Issued | Order Issued | Order
Issued – Partial (a) | |||
AEP Texas (Texas-Transmission) | Order Issued | Case Pending | Case Pending | |||
I&M (Michigan) | Order Issued | Case Pending | Case
Pending | |||
SWEPCo (Louisiana) | Case Pending – Rates Implemented (b) | Case Pending – Rates Implemented (b) | Case Pending – Rates Implemented (b) | |||
SWEPCo (Texas) | Order Issued | To be addressed in a later filing | To
be addressed in a later filing | |||
(a) | A portion of the Excess ADIT that is not subject to rate normalization requirements is addressed in a current pending case. |
(b) | Rates have been implemented through a filed formula rate plan that is subject to true-up and final commission approval. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
Company | 2019 | 2018 | 2019 | 2018 | ||||||||
AEP | i 5.2 | % | ( i 16.2 | )% | i 1.7 | % | i 5.6 | % | ||||
AEP
Texas | i 15.1 | % | i 12.6 | % | ( i 25.3 | )% | i 14.9 | % | ||||
AEPTCo | i 21.9 | % | i 18.4 | % | i 20.7 | % | i 20.7 | % | ||||
APCo | ( i 3.9 | )% | ( i 962.2 | )% | ( i 19.1 | )% | ( i 13.8 | )% | ||||
I&M | ( i 2.7 | )% | i 15.9 | % | ( i 2.1 | )% | i 10.4 | % | ||||
OPCo | i 13.9 | % | ( i 46.4 | )% | i 14.2 | % | i 4.6 | % | ||||
PSO | i 6.4 | % | i 5.6 | % | i 4.6 | % | i 8.7 | % | ||||
SWEPCo | ( i 0.6 | )% | i 9.8 | % | i — | % | i 11.4 | % | ||||
Three
Months Ended September 30, 2019 | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Operating Lease Cost | $ | i 64.4 | $ | i 4.0 | $ | i 0.6 | $ | i 4.9 | $ | i 23.7 | $ | i 4.9 | $ | i 1.5 | $ | i 1.8 | ||||||||||||||||
Finance
Lease Cost: | ||||||||||||||||||||||||||||||||
Amortization
of Right-of-Use Assets | i 16.5 | i 1.5 | i 0.1 | i 2.0 | i 1.6 | i 1.1 | i 0.8 | i 2.8 | ||||||||||||||||||||||||
Interest
on Lease Liabilities | i 4.1 | i 0.3 | i — | i 0.8 | i 0.8 | i 0.2 | i 0.1 | i 0.7 | ||||||||||||||||||||||||
Total
Lease Rental Costs (a) | $ | i 85.0 | $ | i 5.8 | $ | i 0.7 | $ | i 7.7 | $ | i 26.1 | $ | i 6.2 | $ | i 2.4 | $ | i 5.3 | ||||||||||||||||
Nine
Months Ended September 30, 2019 | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Operating Lease Cost | $ | i 200.3 | $ | i 12.2 | $ | i 1.7 | $ | i 14.5 | $ | i 70.0 | $ | i 13.8 | $ | i 5.0 | $ | i 5.7 | ||||||||||||||||
Finance
Lease Cost: | ||||||||||||||||||||||||||||||||
Amortization
of Right-of-Use Assets | i 45.0 | i 3.8 | i 0.1 | i 5.0 | i 4.2 | i 2.6 | i 2.2 | i 8.2 | ||||||||||||||||||||||||
Interest
on Lease Liabilities | i 12.2 | i 1.0 | i — | i 2.2 | i 2.3 | i 0.5 | i 0.4 | i 2.2 | ||||||||||||||||||||||||
Total
Lease Rental Costs (a) | $ | i 257.5 | $ | i 17.0 | $ | i 1.8 | $ | i 21.7 | $ | i 76.5 | $ | i 16.9 | $ | i 7.6 | $ | i 16.1 | ||||||||||||||||
(a) | Excludes
variable and short-term lease costs, which were immaterial for the three and nine months ended September 30, 2019. |
AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||
Weighted-Average
Remaining Lease Term (years): | ||||||||||||||||||||||||
Operating
Leases | i 5.31 | i 7.05 | i 2.43 | i 6.25 | i 4.05 | i 8.10 | i 7.06 | i 6.63 | ||||||||||||||||
Finance
Leases | i 5.87 | i 6.86 | i 0.58 | i 6.33 | i 6.72 | i 6.58 | i 6.24 | i 5.34 | ||||||||||||||||
Weighted-Average
Discount Rate: | ||||||||||||||||||||||||
Operating
Leases | i 3.61 | % | i 3.79 | % | i 3.13 | % | i 3.67 | % | i 3.45 | % | i 3.79 | % | i 3.68 | % | i 3.80 | % | ||||||||
Finance
Leases | i 6.02 | % | i 4.71 | % | i 9.33 | % | i 8.19 | % | i 8.61 | % | i 4.66 | % | i 4.73 | % | i 5.03 | % | ||||||||
Nine
Months Ended September 30, 2019 | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||||||||||||||
Operating
Cash Flows Used for Operating Leases | $ | i 163.6 | $ | i 11.4 | $ | i 1.7 | $ | i 14.1 | $ | i 52.5 | $ | i 13.8 | $ | i 4.9 | $ | i 5.3 | ||||||||||||||||
Operating
Cash Flows Used for Finance Leases | i 11.0 | i 1.0 | i — | i 2.2 | i 2.2 | i 0.5 | i 0.4 | i 1.1 | ||||||||||||||||||||||||
Financing
Cash Flows Used for Finance Leases | i 44.5 | i 3.8 | i — | i 5.0 | i 4.0 | i 2.6 | i 2.2 | i 8.1 | ||||||||||||||||||||||||
Non-cash
Acquisitions Under Operating Leases | $ | i 108.9 | $ | i 12.7 | $ | i — | $ | i 8.6 | $ | i 16.6 | $ | i 34.6 | $ | i 7.3 | $ | i 10.6 | ||||||||||||||||
AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Property, Plant and Equipment Under Finance Leases: | ||||||||||||||||||||||||||||||||
Generation | $ | i 134.9 | $ | i — | $ | i — | $ | i 41.3 | $ | i 28.5 | $ | i — | $ | i 2.6 | $ | i 34.2 | ||||||||||||||||
Other
Property, Plant and Equipment | i 335.9 | i 41.9 | i 0.2 | i 18.4 | i 37.1 | i 24.7 | i 20.7 | i 50.0 | ||||||||||||||||||||||||
Total
Property, Plant and Equipment | i 470.8 | i 41.9 | i 0.2 | i 59.7 | i 65.6 | i 24.7 | i 23.3 | i 84.2 | ||||||||||||||||||||||||
Accumulated
Amortization | i 162.7 | i 10.9 | i 0.2 | i 17.8 | i 22.8 | i 6.6 | i 9.1 | i 26.2 | ||||||||||||||||||||||||
Net
Property, Plant and Equipment Under Finance Leases | $ | i 308.1 | $ | i 31.0 | $ | i — | $ | i 41.9 | $ | i 42.8 | $ | i 18.1 | $ | i 14.2 | $ | i 58.0 | ||||||||||||||||
Obligations
Under Finance Leases: | ||||||||||||||||||||||||||||||||
Noncurrent
Liability | $ | i 254.0 | $ | i 25.8 | $ | i — | $ | i 35.2 | $ | i 37.1 | $ | i 14.5 | $ | i 11.0 | $ | i 50.5 | ||||||||||||||||
Liability
Due Within One Year | i 61.4 | i 5.2 | i — | i 6.7 | i 6.0 | i 3.6 | i 3.2 | i 11.2 | ||||||||||||||||||||||||
Total
Obligations Under Finance Leases | $ | i 315.4 | $ | i 31.0 | $ | i — | $ | i 41.9 | $ | i 43.1 | $ | i 18.1 | $ | i 14.2 | $ | i 61.7 | ||||||||||||||||
AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Operating Lease Assets | $ | i 990.0 | $ | i 82.0 | $ | i 4.6 | $ | i 79.4 | $ | i 295.3 | $ | i 88.2 | $ | i 37.1 | $ | i 40.8 | ||||||||||||||||
Obligations
Under Operating Leases: | ||||||||||||||||||||||||||||||||
Noncurrent
Liability | $ | i 801.1 | $ | i 71.1 | $ | i 2.2 | $ | i 64.8 | $ | i 234.0 | $ | i 75.9 | $ | i 31.2 | $ | i 32.5 | ||||||||||||||||
Liability
Due Within One Year | i 228.8 | i 11.7 | i 2.3 | i 15.3 | i 82.0 | i 12.8 | i 6.0 | i 5.9 | ||||||||||||||||||||||||
Total
Obligations Under Operating Leases | $ | i 1,029.9 | $ | i 82.8 | $ | i 4.5 | $ | i 80.1 | $ | i 316.0 | $ | i 88.7 | $ | i 37.2 | $ | i 38.4 | ||||||||||||||||
Finance
Leases | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Year 1 | $ | i 76.8 | $ | i 6.6 | $ | i — | $ | i 9.6 | $ | i 9.0 | $ | i 4.3 | $ | i 3.8 | $ | i 13.0 | ||||||||||||||||
Year
2 | i 67.0 | i 6.1 | i — | i 8.8 | i 8.2 | i 3.9 | i 3.1 | i 11.6 | ||||||||||||||||||||||||
Year
3 | i 58.0 | i 5.3 | i — | i 8.1 | i 7.6 | i 3.2 | i 2.3 | i 10.6 | ||||||||||||||||||||||||
Year
4 | i 49.0 | i 4.9 | i — | i 7.5 | i 7.1 | i 2.5 | i 2.1 | i 9.5 | ||||||||||||||||||||||||
Year
5 | i 50.0 | i 4.1 | i — | i 7.0 | i 6.7 | i 2.1 | i 1.7 | i 14.8 | ||||||||||||||||||||||||
Later
Years | i 76.1 | i 9.8 | i — | i 11.3 | i 20.9 | i 5.3 | i 3.7 | i 7.5 | ||||||||||||||||||||||||
Total
Future Minimum Lease Payments | i 376.9 | i 36.8 | i — | i 52.3 | i 59.5 | i 21.3 | i 16.7 | i 67.0 | ||||||||||||||||||||||||
Less
Imputed Interest | i 61.5 | i 5.8 | i — | i 10.4 | i 16.4 | i 3.2 | i 2.5 | i 5.3 | ||||||||||||||||||||||||
Estimated
Present Value of Future Minimum Lease Payments | $ | i 315.4 | $ | i 31.0 | $ | i — | $ | i 41.9 | $ | i 43.1 | $ | i 18.1 | $ | i 14.2 | $ | i 61.7 | ||||||||||||||||
Operating
Leases | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
Year 1 | $ | i 267.5 | $ | i 15.7 | $ | i 2.4 | $ | i 18.4 | $ | i 92.2 | $ | i 16.6 | $ | i 7.4 | $ | i 8.4 | ||||||||||||||||
Year
2 | i 252.4 | i 15.2 | i 1.5 | i 16.4 | i 88.4 | i 13.9 | i 6.6 | i 8.2 | ||||||||||||||||||||||||
Year
3 | i 239.9 | i 14.1 | i 0.7 | i 14.7 | i 86.3 | i 13.3 | i 6.0 | i 7.5 | ||||||||||||||||||||||||
Year
4 | i 154.2 | i 13.0 | i 0.3 | i 12.5 | i 48.0 | i 12.4 | i 5.5 | i 7.2 | ||||||||||||||||||||||||
Year
5 | i 63.6 | i 11.4 | i — | i 9.8 | i 7.3 | i 10.8 | i 5.0 | i 5.0 | ||||||||||||||||||||||||
Later
Years | i 184.1 | i 27.8 | i — | i 20.1 | i 22.0 | i 38.3 | i 12.7 | i 12.4 | ||||||||||||||||||||||||
Total
Future Minimum Lease Payments | i 1,161.7 | i 97.2 | i 4.9 | i 91.9 | i 344.2 | i 105.3 | i 43.2 | i 48.7 | ||||||||||||||||||||||||
Less
Imputed Interest | i 131.8 | i 14.4 | i 0.4 | i 11.8 | i 28.2 | i 16.6 | i 6.0 | i 10.3 | ||||||||||||||||||||||||
Estimated
Present Value of Future Minimum Lease Payments | $ | i 1,029.9 | $ | i 82.8 | $ | i 4.5 | $ | i 80.1 | $ | i 316.0 | $ | i 88.7 | $ | i 37.2 | $ | i 38.4 | ||||||||||||||||
Finance
Leases | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
2019 | $ | i 70.8 | $ | i 5.8 | $ | i 0.1 | $ | i 9.0 | $ | i 8.2 | $ | i 3.3 | $ | i 3.4 | $ | i 13.1 | ||||||||||||||||
2020 | i 60.2 | i 5.3 | i — | i 8.0 | i 7.2 | i 2.7 | i 2.6 | i 11.5 | ||||||||||||||||||||||||
2021 | i 51.7 | i 4.7 | i — | i 7.3 | i 6.6 | i 2.3 | i 2.0 | i 10.5 | ||||||||||||||||||||||||
2022 | i 43.8 | i 4.2 | i — | i 6.8 | i 6.1 | i 1.7 | i 1.6 | i 9.4 | ||||||||||||||||||||||||
2023 | i 35.5 | i 3.7 | i — | i 6.3 | i 5.7 | i 1.2 | i 1.4 | i 8.6 | ||||||||||||||||||||||||
Later
Years | i 90.2 | i 10.1 | i — | i 13.3 | i 21.7 | i 2.8 | i 3.3 | i 18.7 | ||||||||||||||||||||||||
Total
Future Minimum Lease Payments | i 352.2 | i 33.8 | i 0.1 | i 50.7 | i 55.5 | i 14.0 | i 14.3 | i 71.8 | ||||||||||||||||||||||||
Less
Imputed Interest | i 63.2 | i 5.3 | i — | i 10.9 | i 16.8 | i 1.9 | i 2.0 | i 11.0 | ||||||||||||||||||||||||
Estimated
Present Value of Future Minimum Lease Payments | $ | i 289.0 | $ | i 28.5 | $ | i 0.1 | $ | i 39.8 | $ | i 38.7 | $ | i 12.1 | $ | i 12.3 | $ | i 60.8 | ||||||||||||||||
Operating
Leases | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||||||
2019 | $ | i 259.6 | $ | i 15.1 | $ | i 2.3 | $ | i 17.6 | $ | i 92.6 | $ | i 14.5 | $ | i 6.5 | $ | i 7.4 | ||||||||||||||||
2020 | i 250.1 | i 14.1 | i 1.8 | i 16.5 | i 89.3 | i 13.2 | i 6.0 | i 7.2 | ||||||||||||||||||||||||
2021 | i 232.7 | i 13.2 | i 1.0 | i 13.9 | i 84.8 | i 10.9 | i 5.0 | i 6.7 | ||||||||||||||||||||||||
2022 | i 222.5 | i 12.2 | i 0.5 | i 12.8 | i 83.8 | i 10.0 | i 4.6 | i 6.1 | ||||||||||||||||||||||||
2023 | i 58.3 | i 10.8 | i 0.1 | i 9.9 | i 6.5 | i 8.8 | i 4.1 | i 5.0 | ||||||||||||||||||||||||
Later
Years | i 165.2 | i 28.4 | i — | i 20.5 | i 19.5 | i 31.7 | i 10.7 | i 11.7 | ||||||||||||||||||||||||
Total
Future Minimum Lease Payments | $ | i 1,188.4 | $ | i 93.8 | $ | i 5.7 | $ | i 91.2 | $ | i 376.5 | $ | i 89.1 | $ | i 36.9 | $ | i 44.1 | ||||||||||||||||
Company | Maximum Potential Loss | |||
(in
millions) | ||||
AEP | $ | i 46.6 | ||
AEP Texas | i 11.2 | |||
APCo | i 6.3 | |||
I&M | i 4.0 | |||
OPCo | i 7.4 | |||
PSO | i 4.3 | |||
SWEPCo | i 4.7 | |||
Future
Minimum Lease Payments | AEP (a) | I&M | ||||||
(in millions) | ||||||||
2019 | $ | i 74.2 | $ | i 37.1 | ||||
2020 | i 147.8 | i 73.9 | ||||||
2021 | i 147.8 | i 73.9 | ||||||
2022 | i 147.2 | i 73.6 | ||||||
Total
Future Minimum Lease Payments | $ | i 517.0 | $ | i 258.5 | ||||
(a) | AEP’s
future minimum lease payments include equal shares from AEGCo and I&M. |
Type
of Debt | ||||||||
(in millions) | ||||||||
Senior Unsecured Notes | $ | i 20,829.2 | $ | i 18,903.3 | ||||
Pollution
Control Bonds | i 1,516.5 | i 1,643.8 | ||||||
Notes
Payable | i 189.1 | i 204.7 | ||||||
Securitization
Bonds | i 1,059.4 | i 1,111.4 | ||||||
Spent
Nuclear Fuel Obligation (a) | i 278.5 | i 273.6 | ||||||
Junior
Subordinated Notes (b) | i 786.8 | i — | ||||||
Other
Long-term Debt | i 1,221.7 | i 1,209.9 | ||||||
Total
Long-term Debt Outstanding | i 25,881.2 | i 23,346.7 | ||||||
Long-term
Debt Due Within One Year | i 1,327.7 | i 1,698.5 | ||||||
Long-term
Debt | $ | i 24,553.5 | $ | i 21,648.2 | ||||
(a) | Pursuant
to the Nuclear Waste Policy Act of 1982, I&M, a nuclear licensee, has an obligation to the United States Department of Energy for SNF disposal. The obligation includes a one-time fee for nuclear fuel consumed prior to April 7, 1983. Trust fund assets related to this obligation were $ i 322 million and $ i 317
million as of September 30, 2019 and December 31, 2018, respectively, and are included in Spent Nuclear Fuel and Decommissioning Trusts on the balance sheets. |
(b) | See “Equity Units” section below for additional information. |
Principal | Interest | |||||||||
Company | Type
of Debt | Amount (a) | Rate | Due Date | ||||||
Issuances: | (in millions) | (%) | ||||||||
AEP | Junior
Subordinated Notes (b) | $ | i 805.0 | 3.40 | 2024 | |||||
AEP
Texas | Securitization Bonds | i 117.6 | 2.06 | 2025 | ||||||
AEP
Texas | Securitization Bonds | i 117.6 | 2.29 | 2029 | ||||||
AEP
Texas | Pollution Control Bonds | i 100.6 | 2.60 | 2029 | ||||||
AEP
Texas | Senior Unsecured Notes | i 300.0 | 4.15 | 2049 | ||||||
AEPTCo | Senior
Unsecured Notes | i 350.0 | 3.80 | 2049 | ||||||
AEPTCo | Senior
Unsecured Notes | i 350.0 | 3.15 | 2049 | ||||||
APCo | Pollution
Control Bonds | i 86.0 | 2.55 | 2024 | ||||||
APCo | Senior
Unsecured Notes | i 400.0 | 4.50 | 2049 | ||||||
I&M | Notes
Payable | i 62.8 | Variable | 2023 | ||||||
OPCo | Senior
Unsecured Notes | i 450.0 | 4.00 | 2049 | ||||||
PSO | Senior
Unsecured Notes | i 100.0 | 3.91 | 2029 | ||||||
PSO | Senior
Unsecured Notes | i 150.0 | 4.11 | 2034 | ||||||
PSO | Senior
Unsecured Notes | i 100.0 | 4.50 | 2049 | ||||||
Non-Registrant: | ||||||||||
AEGCo | Pollution
Control Bonds | i 45.0 | 1.35 | 2022 | ||||||
Transource
Energy | Other Long-term Debt | i 14.4 | Variable | 2020 | ||||||
Total
Issuances | $ | i 3,549.0 | ||||||||
(a) | Amounts
indicated on the statements of cash flows are net of issuance costs and premium or discount and will not tie to the issuance amounts. |
(b) | See “Equity Units” section below for additional information. |
Principal | Interest | |||||||||
Company | Type
of Debt | Amount Paid | Rate | Due Date | ||||||
Retirements and Principal Payments: | (in millions) | (%) | ||||||||
AEP
Texas | Senior Unsecured Notes | $ | i 50.0 | 2.61 | 2019 | |||||
AEP
Texas | Securitization Bonds | i 28.2 | 1.98 | 2020 | ||||||
AEP
Texas | Securitization Bonds | i 188.0 | 5.31 | 2020 | ||||||
AEP
Texas | Pollution Control Bonds | i 100.6 | 6.30 | 2029 | ||||||
APCo | Pollution
Control Bonds | i 86.0 | 1.90 | 2019 | ||||||
APCo | Pollution
Control Bonds | i 70.0 | 3.25 | 2019 | ||||||
APCo | Securitization
Bonds | i 24.4 | 2.01 | 2023 | ||||||
I&M | Notes
Payable | i 2.7 | Variable | 2019 | ||||||
I&M | Notes
Payable | i 4.3 | Variable | 2019 | ||||||
I&M | Notes
Payable | i 13.7 | Variable | 2020 | ||||||
I&M | Notes
Payable | i 17.9 | Variable | 2021 | ||||||
I&M | Notes
Payable | i 11.3 | Variable | 2022 | ||||||
I&M | Notes
Payable | i 16.0 | Variable | 2022 | ||||||
I&M | Notes
Payable | i 6.4 | Variable | 2023 | ||||||
I&M | Other
Long-term Debt | i 1.3 | 6.00 | 2025 | ||||||
OPCo | Securitization
Bonds | i 47.9 | 2.05 | 2019 | ||||||
OPCo | Other
Long-term Debt | i 0.1 | 1.15 | 2028 | ||||||
PSO | Senior
Unsecured Notes | i 250.0 | 5.15 | 2019 | ||||||
PSO | Other
Long-term Debt | i 0.4 | 3.00 | 2027 | ||||||
SWEPCo | Pollution
Control Bonds | i 53.5 | 1.60 | 2019 | ||||||
SWEPCo | Other
Long-term Debt | i 1.5 | 4.68 | 2028 | ||||||
SWEPCo | Notes
Payable | i 3.2 | 4.58 | 2032 | ||||||
Non-Registrant: | ||||||||||
AEGCo | Pollution
Control Bonds | i 45.0 | Variable | 2019 | ||||||
AEP
Energy | Notes Payable | i 0.1 | 5.75 | 2019 | ||||||
Transource
Energy | Other Long-term Debt | i 1.0 | Variable | 2020 | ||||||
Total
Retirements and Principal Payments | $ | i 1,023.5 | ||||||||
• | If the AEP common stock market price is equal to or greater than $ i 99.58:
i 0.5021 shares per contract. |
• | If the AEP common stock market price is less than $99.58 but greater than $ i 82.98:
a number of shares per contract equal to $50 divided by the applicable market price. The holder receives a variable number of shares at $50. |
• | If the AEP common stock market price is less than or equal to $82.98: i 0.6026 shares per contract. |
Maximum | Average | Net
Loans to | |||||||||||||||||||||||
Borrowings | Maximum | Borrowings | Average | (Borrowings
from) | Authorized | ||||||||||||||||||||
from the | Loans to the | from the | Loans to the | the
Utility Money | Short-term | ||||||||||||||||||||
Utility | Utility | Utility | Utility | Pool
as of | Borrowing | ||||||||||||||||||||
Company | Money Pool | Money Pool | Money Pool | Money Pool | Limit | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
AEP Texas | $ | i 390.7 | $ | i — | $ | i 261.8 | $ | i — | $ | ( i 74.8 | ) | $ | i 500.0 | ||||||||||||
AEPTCo | i 374.9 | i 244.4 | i 179.8 | i 40.2 | i 236.6 | i 795.0 | (a) | ||||||||||||||||||
APCo | i 225.4 | i 232.2 | i 90.4 | i 61.8 | ( i 17.7 | ) | i 600.0 | ||||||||||||||||||
I&M | i 120.4 | i 66.0 | i 53.1 | i 17.2 | ( i 89.2 | ) | i 500.0 | ||||||||||||||||||
OPCo | i 291.2 | i 178.6 | i 163.5 | i 50.1 | ( i 17.6 | ) | i 500.0 | ||||||||||||||||||
PSO | i 140.5 | i 215.6 | i 63.9 | i 84.1 | i 95.1 | i 300.0 | |||||||||||||||||||
SWEPCo | i 105.1 | i 81.4 | i 57.8 | i 11.2 | i 6.4 | i 350.0 | |||||||||||||||||||
(a) | Amount
represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions. |
Maximum
Loans | Average Loans | Loans to the Nonutility | ||||||||||
to the Nonutility | to the Nonutility | Money Pool as of | ||||||||||
Company | Money
Pool | Money Pool | ||||||||||
(in millions) | ||||||||||||
AEP Texas | $ | i 8.0 | $ | i 7.7 | $ | i 7.7 | ||||||
SWEPCo | i 2.1 | i 2.0 | i 2.1 | |||||||||
Maximum | Maximum | Average | Average | Borrowings
from | Loans to | Authorized | |||||||||||||||||||||
Borrowings | Loans | Borrowings | Loans | AEP
as of | AEP as of | Short-term | |||||||||||||||||||||
from AEP | to AEP | from AEP | to AEP | Borrowing Limit | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
$ | i 1.3 | $ | i 117.6 | $ | i 1.3 | $ | i 63.4 | $ | i 1.3 | $ | i 30.8 | $ | i 75.0 | (a) | |||||||||||||
(a) | Amount
represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions. |
Nine
Months Ended September 30, | ||||||
2019 | 2018 | |||||
Maximum Interest Rate | 3.43 | % | 2.52 | % | ||
Minimum
Interest Rate | 1.83 | % | 1.81 | % | ||
Average
Interest Rate for Funds | Average Interest Rate for Funds | |||||||||||
Borrowed from the Utility Money Pool | Loaned to the Utility Money Pool | |||||||||||
for Nine Months Ended September 30, | for
Nine Months Ended September 30, | |||||||||||
Company | 2019 | 2018 | 2019 | 2018 | ||||||||
AEP Texas | i 2.71 | % | i 2.25 | % | i — | % | i 2.29 | % | ||||
AEPTCo | i 2.72 | % | i 2.26 | % | i 2.57 | % | i 2.04 | % | ||||
APCo | i 2.82 | % | i 2.22 | % | i 2.73 | % | i 2.19 | % | ||||
I&M | i 2.56 | % | i 2.16 | % | i 2.73 | % | i 2.06 | % | ||||
OPCo | i 2.80 | % | i 2.18 | % | i 2.68 | % | i 2.47 | % | ||||
PSO | i 2.85 | % | i 2.25 | % | i 2.48 | % | i 1.86 | % | ||||
SWEPCo | i 2.74 | % | i 2.31 | % | i 2.47 | % | i 1.87 | % | ||||
Nine
Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||
Maximum | Minimum | Average | Maximum | Minimum | Average | |||||||||||||
Interest
Rate | Interest Rate | Interest Rate | Interest Rate | Interest Rate | Interest Rate | |||||||||||||
for
Funds | for Funds | for Funds | for Funds | for Funds | for Funds | |||||||||||||
Loaned to | Loaned
to | Loaned to | Loaned to | Loaned to | Loaned to | |||||||||||||
the Nonutility | the Nonutility | the
Nonutility | the Nonutility | the Nonutility | the Nonutility | |||||||||||||
Company | Money Pool | Money Pool | Money
Pool | Money Pool | Money Pool | Money Pool | ||||||||||||
AEP Texas | i 3.02 | % | i 2.36 | % | i 2.70 | % | i 2.52 | % | i 1.83 | % | i 2.26 | % | ||||||
SWEPCo | i 3.02 | % | i 2.36 | % | i 2.70 | % | i 2.52 | % | i 1.83 | % | i 2.26 | % | ||||||
Maximum | Minimum | Maximum | Minimum | Average | Average | |||||||||||||
Interest
Rate | Interest Rate | Interest Rate | Interest Rate | Interest Rate | Interest Rate | |||||||||||||
Nine Months | for
Funds | for Funds | for Funds | for Funds | for Funds | for Funds | ||||||||||||
Ended | Borrowed | Borrowed | Loaned | Loaned | Borrowed | Loaned | ||||||||||||
September
30, | from AEP | from AEP | to AEP | to AEP | from AEP | to AEP | ||||||||||||
2019 | i 3.02 | % | i 2.36 | % | i 3.02 | % | i 2.36 | % | i 2.70 | % | i 2.70 | % | ||||||
2018 | i 2.52 | % | i 1.76 | % | i 2.52 | % | i 1.76 | % | i 2.26 | % | i 2.27 | % | ||||||
Outstanding | Interest | Outstanding | Interest | |||||||||||
Type of Debt | Amount | Rate
(a) | Amount | Rate (a) | ||||||||||
(dollars in millions) | ||||||||||||||
Securitized Debt for Receivables (b) | $ | i 750.0 | i 2.56 | % | $ | i 750.0 | i 2.16 | % | ||||||
Commercial
Paper | i 1,760.0 | i 2.36 | % | i 1,160.0 | i 2.96 | % | ||||||||
Total
Short-term Debt | $ | i 2,510.0 | $ | i 1,910.0 | ||||||||||
(a) | Weighted-average
rate. |
(b) | Amount of securitized debt for receivables as accounted for under the “Transfers and Servicing” accounting guidance. |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(dollars
in millions) | ||||||||||||||||
Effective Interest Rates on Securitization of Accounts Receivable | i 2.37 | % | i 2.27 | % | i 2.56 | % | i 2.06 | % | ||||||||
Net
Uncollectible Accounts Receivable Written-Off | $ | i 8.8 | $ | i 9.6 | $ | i 19.8 | $ | i 19.0 | ||||||||
(in millions) | ||||||||
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts | $ | i 923.3 | $ | i 972.5 | ||||
Short-term
– Securitized Debt of Receivables | i 750.0 | i 750.0 | ||||||
Delinquent
Securitized Accounts Receivable | i 43.9 | i 50.3 | ||||||
Bad
Debt Reserves Related to Securitization | i 32.3 | i 27.5 | ||||||
Unbilled
Receivables Related to Securitization | i 216.2 | i 281.4 | ||||||
Company | ||||||||
(in millions) | ||||||||
APCo | $ | i 95.4 | $ | i 133.3 | ||||
I&M | i 156.2 | i 152.9 | ||||||
OPCo | i 337.5 | i 395.2 | ||||||
PSO | i 149.4 | i 109.7 | ||||||
SWEPCo | i 168.6 | i 150.3 | ||||||
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Company | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | ||||||||||||||||
APCo | $ | i 1.2 | $ | i 1.8 | $ | i 5.8 | $ | i 5.1 | ||||||||
I&M | i 2.4 | i 2.5 | i 8.4 | i 6.8 | ||||||||||||
OPCo | i 6.4 | i 7.2 | i 22.1 | i 18.8 | ||||||||||||
PSO | i 2.0 | i 2.3 | i 6.2 | i 6.0 | ||||||||||||
SWEPCo | i 1.9 | i 2.6 | i 7.9 | i 6.6 | ||||||||||||
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Company | 2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | ||||||||||||||||
APCo | $ | i 303.3 | $ | i 334.1 | $ | i 978.5 | $ | i 1,079.2 | ||||||||
I&M | i 485.3 | i 498.4 | i 1,378.9 | i 1,401.7 | ||||||||||||
OPCo | i 602.6 | i 695.2 | i 1,746.1 | i 2,046.9 | ||||||||||||
PSO | i 451.5 | i 454.9 | i 1,118.7 | i 1,171.2 | ||||||||||||
SWEPCo | i 480.7 | i 512.6 | i 1,247.0 | i 1,364.6 | ||||||||||||
American
Electric Power Company, Inc. and Subsidiary Companies | |||||||||||
Variable Interest Entities | |||||||||||
Registrant Subsidiary | Other
Consolidated VIEs | ||||||||||
AEP Texas Restoration Funding | Apple Blossom and Black Oak | Santa Rita East | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current
Assets | $ | i 1.2 | $ | i 5.7 | $ | i 17.0 | |||||
Net
Property, Plant and Equipment | i — | i 233.3 | i 466.6 | ||||||||
Other
Noncurrent Assets | i 235.3 | i 12.5 | i 0.8 | ||||||||
Total
Assets | $ | i 236.5 | $ | i 251.5 | $ | i 484.4 | |||||
LIABILITIES
AND EQUITY | |||||||||||
Current Liabilities | $ | i 14.4 | $ | i 2.2 | $ | i 3.5 | |||||
Noncurrent
Liabilities | i 220.9 | i 4.6 | i 7.5 | ||||||||
Equity
| i 1.2 | i 244.7 | i 473.4 | ||||||||
Total
Liabilities and Equity | $ | i 236.5 | $ | i 251.5 | $ | i 484.4 | |||||
Three
Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and
Other | Reconciling Adjustments | AEP Consolidated | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 1,060.2 | $ | i 588.0 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 1,648.2 | ||||||||||||||
Commercial
Revenues | i 612.5 | i 290.9 | i — | i — | i — | i — | i 903.4 | |||||||||||||||||||||
Industrial
Revenues | i 566.0 | i 99.3 | i — | i — | i — | i 1.5 | i 666.8 | |||||||||||||||||||||
Other
Retail Revenues | i 49.2 | i 10.6 | i — | i — | i — | i — | i 59.8 | |||||||||||||||||||||
Total
Retail Revenues | i 2,287.9 | i 988.8 | i — | i — | i — | i 1.5 | i 3,278.2 | |||||||||||||||||||||
Wholesale
and Competitive Retail Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (a) | i 231.3 | i — | i — | i 77.1 | i — | ( i 34.2 | ) | i 274.2 | ||||||||||||||||||||
Transmission
Revenues (b) | i 77.8 | i 110.9 | i 269.4 | i — | i — | ( i 217.2 | ) | i 240.9 | ||||||||||||||||||||
Marketing,
Competitive Retail and Renewable Revenues | i — | i — | i — | i 415.4 | i — | i 0.5 | i 415.9 | |||||||||||||||||||||
Total
Wholesale and Competitive Retail Revenues | i 309.1 | i 110.9 | i 269.4 | i 492.5 | i — | ( i 250.9 | ) | i 931.0 | ||||||||||||||||||||
Other
Revenues from Contracts with Customers (c) | i 47.3 | i 42.9 | i 4.5 | i 14.8 | i 35.6 | ( i 42.2 | ) | i 102.9 | ||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 2,644.3 | i 1,142.6 | i 273.9 | i 507.3 | i 35.6 | ( i 291.6 | ) | i 4,312.1 | ||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (c) | i 1.2 | i 5.1 | ( i 0.9 | ) | i — | i — | ( i 16.8 | ) | ( i 11.4 | ) | ||||||||||||||||||
Other
Revenues (c) | i — | i 38.9 | i — | i 26.4 | ( i 11.2 | ) | ( i 39.8 | ) | i 14.3 | |||||||||||||||||||
Total
Other Revenues | i 1.2 | i 44.0 | ( i 0.9 | ) | i 26.4 | ( i 11.2 | ) | ( i 56.6 | ) | i 2.9 | ||||||||||||||||||
Total
Revenues | $ | i 2,645.5 | $ | i 1,186.6 | $ | i 273.0 | $ | i 533.7 | $ | i 24.4 | $ | ( i 348.2 | ) | $ | i 4,315.0 | |||||||||||||
(a) | Amounts
include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $ i 34 million. The remaining affiliated amounts were immaterial. |
(b) | Amounts include
affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $ i 197 million. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated
and nonaffiliated revenues. |
Three
Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and
Other | Reconciling Adjustments | AEP Consolidated | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 1,048.7 | $ | i 612.2 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 1,660.9 | ||||||||||||||
Commercial
Revenues | i 612.8 | i 330.9 | i — | i — | i — | i — | i 943.7 | |||||||||||||||||||||
Industrial
Revenues | i 578.8 | i 128.8 | i — | i — | i — | i — | i 707.6 | |||||||||||||||||||||
Other
Retail Revenues | i 49.1 | i 10.7 | i — | i — | i — | i — | i 59.8 | |||||||||||||||||||||
Total
Retail Revenues (a) | i 2,289.4 | i 1,082.6 | i — | i — | i — | i — | i 3,372.0 | |||||||||||||||||||||
Wholesale
and Competitive Retail Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (b) | i 224.2 | i — | i — | i 115.1 | i — | ( i 98.5 | ) | i 240.8 | ||||||||||||||||||||
Transmission
Revenues (c) | i 72.8 | i 88.0 | i 201.4 | i — | i — | ( i 241.6 | ) | i 120.6 | ||||||||||||||||||||
Marketing,
Competitive Retail and Renewable Revenues | i — | i — | i — | i 399.1 | i — | i — | i 399.1 | |||||||||||||||||||||
Total
Wholesale and Competitive Retail Revenues | i 297.0 | i 88.0 | i 201.4 | i 514.2 | i — | ( i 340.1 | ) | i 760.5 | ||||||||||||||||||||
Other
Revenues from Contracts with Customers (e) | i 40.3 | i 69.9 | i 0.7 | i 12.7 | i 21.5 | i 49.5 | i 194.6 | |||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 2,626.7 | i 1,240.5 | i 202.1 | i 526.9 | i 21.5 | ( i 290.6 | ) | i 4,327.1 | ||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (d) | i 0.2 | ( i 37.9 | ) | ( i 14.9 | ) | i — | i — | i — | ( i 52.6 | ) | ||||||||||||||||||
Other
Revenues (e) | i 9.8 | i 8.9 | i — | ( i 5.3 | ) | i 2.2 | i 43.0 | i 58.6 | ||||||||||||||||||||
Total
Other Revenues | i 10.0 | ( i 29.0 | ) | ( i 14.9 | ) | ( i 5.3 | ) | i 2.2 | i 43.0 | i 6.0 | ||||||||||||||||||
Total
Revenues | $ | i 2,636.7 | $ | i 1,211.5 | $ | i 187.2 | $ | i 521.6 | $ | i 23.7 | $ | ( i 247.6 | ) | $ | i 4,333.1 | |||||||||||||
(a) | 2018
amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $ i 35
million. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $ i 147 million. The
remaining affiliated amounts were immaterial. |
(d) | The alternative revenue for Transmission and Distribution Utilities was primarily the $ i 48 million reduction
in revenue relating to the Ohio Tax Reform settlement. |
(e) | Amounts include affiliated and nonaffiliated revenues. |
Three
Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 192.0 | $ | i — | $ | i 315.7 | $ | i 198.2 | $ | i 395.6 | $ | i 231.9 | $ | i 222.9 | ||||||||||||||
Commercial
Revenues | i 110.6 | i — | i 147.2 | i 138.3 | i 180.5 | i 122.2 | i 144.3 | |||||||||||||||||||||
Industrial
Revenues | i 32.2 | i — | i 152.2 | i 138.7 | i 67.1 | i 84.1 | i 92.3 | |||||||||||||||||||||
Other
Retail Revenues | i 7.5 | i — | i 18.5 | i 1.9 | i 3.1 | i 24.9 | i 2.3 | |||||||||||||||||||||
Total
Retail Revenues | i 342.3 | i — | i 633.6 | i 477.1 | i 646.3 | i 463.1 | i 461.8 | |||||||||||||||||||||
Wholesale
Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (a) | i — | i — | i 70.4 | i 102.1 | i — | i 21.1 | i 50.7 | |||||||||||||||||||||
Transmission
Revenues (b) | i 97.7 | i 256.4 | i 26.2 | i 6.4 | i 13.7 | ( i 3.4 | ) | i 30.0 | ||||||||||||||||||||
Total
Wholesale Revenues | i 97.7 | i 256.4 | i 96.6 | i 108.5 | i 13.7 | i 17.7 | i 80.7 | |||||||||||||||||||||
Other
Revenues from Contracts with Customers (c) | i 8.2 | i 4.5 | i 18.7 | i 26.6 | i 41.0 | i 5.1 | i 7.0 | |||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 448.2 | i 260.9 | i 748.9 | i 612.2 | i 701.0 | i 485.9 | i 549.5 | |||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (d) | ( i 0.7 | ) | ( i 1.2 | ) | i 6.6 | ( i 1.1 | ) | i 12.4 | i 7.1 | ( i 4.0 | ) | |||||||||||||||||
Other
Revenues (d) | i 41.8 | i — | i — | i — | ( i 2.8 | ) | i — | i — | ||||||||||||||||||||
Total
Other Revenues | i 41.1 | ( i 1.2 | ) | i 6.6 | ( i 1.1 | ) | i 9.6 | i 7.1 | ( i 4.0 | ) | ||||||||||||||||||
Total
Revenues | $ | i 489.3 | $ | i 259.7 | $ | i 755.5 | $ | i 611.1 | $ | i 710.6 | $ | i 493.0 | $ | i 545.5 | ||||||||||||||
(a) | Amounts
include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $ i 32 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial. |
(b) | Amounts include
affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $ i 194 million. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and nonaffiliated revenues. The affiliated
revenue for I&M was $ i 20 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial. |
(d) | Amounts include affiliated and nonaffiliated
revenues. |
Three
Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 178.8 | $ | i — | $ | i 320.9 | $ | i 207.4 | $ | i 433.5 | $ | i 220.8 | $ | i 214.1 | ||||||||||||||
Commercial
Revenues | i 107.9 | i — | i 155.1 | i 138.0 | i 222.9 | i 119.9 | i 140.4 | |||||||||||||||||||||
Industrial
Revenues | i 32.1 | i — | i 157.6 | i 150.2 | i 96.3 | i 82.4 | i 89.6 | |||||||||||||||||||||
Other
Retail Revenues | i 7.4 | i — | i 19.2 | i 1.7 | i 3.3 | i 24.5 | i 2.2 | |||||||||||||||||||||
Total
Retail Revenues (a) | i 326.2 | i — | i 652.8 | i 497.3 | i 756.0 | i 447.6 | i 446.3 | |||||||||||||||||||||
Wholesale
Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (b) | i — | i — | i 74.5 | i 93.6 | i — | i 12.5 | i 53.2 | |||||||||||||||||||||
Transmission
Revenues (c) | i 73.6 | i 206.6 | i 20.9 | i 6.2 | i 14.8 | i 13.5 | i 29.5 | |||||||||||||||||||||
Total
Wholesale Revenues | i 73.6 | i 206.6 | i 95.4 | i 99.8 | i 14.8 | i 26.0 | i 82.7 | |||||||||||||||||||||
Other
Revenues from Contracts with Customers (d) | i 7.5 | i 0.2 | i 15.9 | i 22.4 | ( i 29.9 | ) | i 5.5 | i 6.6 | ||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 407.3 | i 206.8 | i 764.1 | i 619.5 | i 740.9 | i 479.1 | i 535.6 | |||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (e) | ( i 1.0 | ) | ( i 12.4 | ) | ( i 1.2 | ) | i 1.5 | ( i 36.9 | ) | i 2.3 | ( i 0.3 | ) | ||||||||||||||||
Other
Revenues (f) | i 27.1 | i — | ( i 0.9 | ) | i 8.7 | i 74.3 | i — | i — | ||||||||||||||||||||
Total
Other Revenues | i 26.1 | ( i 12.4 | ) | ( i 2.1 | ) | i 10.2 | i 37.4 | i 2.3 | ( i 0.3 | ) | ||||||||||||||||||
Total
Revenues | $ | i 433.4 | $ | i 194.4 | $ | i 762.0 | $ | i 629.7 | $ | i 778.3 | $ | i 481.4 | $ | i 535.3 | ||||||||||||||
(a) | 2018
amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $ i 30
million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $ i 146 million. The
remaining affiliated amounts were immaterial. |
(d) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $ i 17 million primarily relating to the barging, urea transloading and other transportation
services. The remaining affiliated amounts were immaterial. |
(e) | The alternative revenue for OPCo was primarily the $ i 48 million reduction in revenue relating to the Ohio Tax Reform settlement. |
(f) | Amounts
include affiliated and nonaffiliated revenues. |
Nine
Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and
Other | Reconciling Adjustments | AEP Consolidated | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 2,797.6 | $ | i 1,609.1 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 4,406.7 | ||||||||||||||
Commercial
Revenues | i 1,641.2 | i 889.4 | i — | i — | i — | i — | i 2,530.6 | |||||||||||||||||||||
Industrial
Revenues | i 1,647.3 | i 332.6 | i — | i — | i — | i — | i 1,979.9 | |||||||||||||||||||||
Other
Retail Revenues | i 136.1 | i 32.8 | i — | i — | i — | i — | i 168.9 | |||||||||||||||||||||
Total
Retail Revenues | i 6,222.2 | i 2,863.9 | i — | i — | i — | i — | i 9,086.1 | |||||||||||||||||||||
Wholesale
and Competitive Retail Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (a) | i 661.9 | i — | i — | i 282.0 | i — | ( i 105.5 | ) | i 838.4 | ||||||||||||||||||||
Transmission
Revenues (b) | i 215.4 | i 324.0 | i 814.3 | i — | i — | ( i 603.6 | ) | i 750.1 | ||||||||||||||||||||
Marketing,
Competitive Retail and Renewable Revenues | i — | i — | i — | i 1,088.5 | i — | i 0.5 | i 1,089.0 | |||||||||||||||||||||
Total
Wholesale and Competitive Retail Revenues | i 877.3 | i 324.0 | i 814.3 | i 1,370.5 | i — | ( i 708.6 | ) | i 2,677.5 | ||||||||||||||||||||
Other
Revenues from Contracts with Customers (c) | i 128.8 | i 127.6 | i 12.6 | i 4.5 | i 80.4 | ( i 113.6 | ) | i 240.3 | ||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 7,228.3 | i 3,315.5 | i 826.9 | i 1,375.0 | i 80.4 | ( i 822.2 | ) | i 12,003.9 | ||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (c) | ( i 55.7 | ) | i 21.5 | ( i 18.6 | ) | i — | i — | ( i 60.3 | ) | ( i 113.1 | ) | |||||||||||||||||
Other
Revenues (c) | i — | i 117.3 | i — | i 53.2 | ( i 6.7 | ) | ( i 109.2 | ) | i 54.6 | |||||||||||||||||||
Total
Other Revenues | ( i 55.7 | ) | i 138.8 | ( i 18.6 | ) | i 53.2 | ( i 6.7 | ) | ( i 169.5 | ) | ( i 58.5 | ) | ||||||||||||||||
Total
Revenues | $ | i 7,172.6 | $ | i 3,454.3 | $ | i 808.3 | $ | i 1,428.2 | $ | i 73.7 | $ | ( i 991.7 | ) | $ | i 11,945.4 | |||||||||||||
(a) | Amounts
include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $ i 105 million. The remaining affiliated amounts were immaterial. |
(b) | Amounts include
affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $ i 596 million. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and
nonaffiliated revenues. |
Nine
Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
Vertically Integrated Utilities | Transmission and Distribution Utilities | AEP Transmission Holdco | Generation & Marketing | Corporate and
Other | Reconciling Adjustments | AEP Consolidated | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 2,906.9 | $ | i 1,711.1 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 4,618.0 | ||||||||||||||
Commercial
Revenues | i 1,672.7 | i 945.2 | i — | i — | i — | i — | i 2,617.9 | |||||||||||||||||||||
Industrial
Revenues | i 1,676.1 | i 381.5 | i — | i — | i — | i — | i 2,057.6 | |||||||||||||||||||||
Other
Retail Revenues | i 139.4 | i 31.8 | i — | i — | i — | i — | i 171.2 | |||||||||||||||||||||
Total
Retail Revenues (a) | i 6,395.1 | i 3,069.6 | i — | i — | i — | i — | i 9,464.7 | |||||||||||||||||||||
Wholesale
and Competitive Retail Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (b) | i 686.5 | i — | i — | i 413.4 | i — | ( i 155.2 | ) | i 944.7 | ||||||||||||||||||||
Transmission
Revenues (c) | i 208.4 | i 272.6 | i 633.9 | i — | i — | ( i 520.7 | ) | i 594.2 | ||||||||||||||||||||
Marketing,
Competitive Retail and Renewable Revenues | i — | i — | i — | i 1,040.2 | i — | i — | i 1,040.2 | |||||||||||||||||||||
Total
Wholesale and Competitive Retail Revenues | i 894.9 | i 272.6 | i 633.9 | i 1,453.6 | i — | ( i 675.9 | ) | i 2,579.1 | ||||||||||||||||||||
Other
Revenues from Contracts with Customers (e) | i 121.8 | i 165.1 | i 11.1 | i 15.0 | i 64.8 | i 1.8 | i 379.6 | |||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 7,411.8 | i 3,507.3 | i 645.0 | i 1,468.6 | i 64.8 | ( i 674.1 | ) | i 12,423.4 | ||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (d) | ( i 19.2 | ) | ( i 48.3 | ) | ( i 39.8 | ) | i — | i — | i — | ( i 107.3 | ) | |||||||||||||||||
Other
Revenues (e) | i 1.1 | i 51.9 | i — | i 18.8 | i 6.7 | i — | i 78.5 | |||||||||||||||||||||
Total
Other Revenues | ( i 18.1 | ) | i 3.6 | ( i 39.8 | ) | i 18.8 | i 6.7 | i — | ( i 28.8 | ) | ||||||||||||||||||
Total
Revenues | $ | i 7,393.7 | $ | i 3,510.9 | $ | i 605.2 | $ | i 1,487.4 | $ | i 71.5 | $ | ( i 674.1 | ) | $ | i 12,394.6 | |||||||||||||
(a) | 2018
amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $ i 87
million. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $ i 444 million. The
remaining affiliated amounts were immaterial. |
(d) | The alternative revenue for Transmission and Distribution Utilities was primarily the $ i 48 million reduction
in revenue relating to the Ohio Tax Reform settlement. |
(e) | Amounts include affiliated and nonaffiliated revenues. |
Nine
Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 454.9 | $ | i — | $ | i 944.7 | $ | i 558.8 | $ | i 1,155.5 | $ | i 519.6 | $ | i 503.7 | ||||||||||||||
Commercial
Revenues | i 314.5 | i — | i 421.5 | i 371.4 | i 573.7 | i 304.3 | i 371.1 | |||||||||||||||||||||
Industrial
Revenues | i 98.8 | i — | i 444.3 | i 411.9 | i 233.9 | i 238.1 | i 257.2 | |||||||||||||||||||||
Other
Retail Revenues | i 22.7 | i — | i 56.5 | i 5.4 | i 9.8 | i 63.1 | i 6.7 | |||||||||||||||||||||
Total
Retail Revenues | i 890.9 | i — | i 1,867.0 | i 1,347.5 | i 1,972.9 | i 1,125.1 | i 1,138.7 | |||||||||||||||||||||
Wholesale
Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (a) | i — | i — | i 200.1 | i 327.4 | i — | i 35.5 | i 152.7 | |||||||||||||||||||||
Transmission
Revenues (b) | i 282.0 | i 775.3 | i 77.6 | i 18.8 | i 42.0 | i 21.9 | i 78.0 | |||||||||||||||||||||
Total
Wholesale Revenues | i 282.0 | i 775.3 | i 277.7 | i 346.2 | i 42.0 | i 57.4 | i 230.7 | |||||||||||||||||||||
Other
Revenues from Contracts with Customers (c) | i 22.9 | i 12.6 | i 48.2 | i 76.2 | i 113.3 | i 16.7 | i 20.1 | |||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 1,195.8 | i 787.9 | i 2,192.9 | i 1,769.9 | i 2,128.2 | i 1,199.2 | i 1,389.5 | |||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (d) | ( i 0.4 | ) | ( i 17.8 | ) | i 11.2 | ( i 1.4 | ) | i 22.0 | ( i 25.3 | ) | ( i 47.4 | ) | ||||||||||||||||
Other
Revenues (d) | i 122.6 | i — | i — | i — | i 3.8 | i — | i — | |||||||||||||||||||||
Total
Other Revenues | i 122.2 | ( i 17.8 | ) | i 11.2 | ( i 1.4 | ) | i 25.8 | ( i 25.3 | ) | ( i 47.4 | ) | |||||||||||||||||
Total
Revenues | $ | i 1,318.0 | $ | i 770.1 | $ | i 2,204.1 | $ | i 1,768.5 | $ | i 2,154.0 | $ | i 1,173.9 | $ | i 1,342.1 | ||||||||||||||
(a) | Amounts
include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $ i 96 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial. |
(b) | Amounts include
affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $ i 587 million. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and nonaffiliated revenues. The affiliated
revenue for I&M was $ i 57 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial. |
(d) | Amounts include affiliated and nonaffiliated revenues. |
Nine
Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Retail Revenues: | ||||||||||||||||||||||||||||
Residential
Revenues | $ | i 453.6 | $ | i — | $ | i 1,017.3 | $ | i 559.4 | $ | i 1,258.4 | $ | i 531.4 | $ | i 512.4 | ||||||||||||||
Commercial
Revenues | i 310.8 | i — | i 442.3 | i 369.8 | i 633.2 | i 309.3 | i 372.6 | |||||||||||||||||||||
Industrial
Revenues | i 94.8 | i — | i 457.3 | i 428.0 | i 287.4 | i 228.7 | i 254.0 | |||||||||||||||||||||
Other
Retail Revenues | i 21.7 | i — | i 57.6 | i 5.4 | i 9.8 | i 65.2 | i 6.4 | |||||||||||||||||||||
Total
Retail Revenues (a) | i 880.9 | i — | i 1,974.5 | i 1,362.6 | i 2,188.8 | i 1,134.6 | i 1,145.4 | |||||||||||||||||||||
Wholesale
Revenues: | ||||||||||||||||||||||||||||
Generation
Revenues (b) | i — | i — | i 194.1 | i 349.7 | i — | i 26.7 | i 168.8 | |||||||||||||||||||||
Transmission
Revenues (c) | i 229.6 | i 612.9 | i 60.2 | i 16.9 | i 42.8 | i 29.4 | i 77.3 | |||||||||||||||||||||
Total
Wholesale Revenues | i 229.6 | i 612.9 | i 254.3 | i 366.6 | i 42.8 | i 56.1 | i 246.1 | |||||||||||||||||||||
Other
Revenues from Contracts with Customers (d) | i 21.8 | i 8.7 | i 42.2 | i 71.0 | i 51.3 | i 14.6 | i 18.0 | |||||||||||||||||||||
Total
Revenues from Contracts with Customers | i 1,132.3 | i 621.6 | i 2,271.0 | i 1,800.2 | i 2,282.9 | i 1,205.3 | i 1,409.5 | |||||||||||||||||||||
Other
Revenues: | ||||||||||||||||||||||||||||
Alternative
Revenues (e) | ( i 1.1 | ) | ( i 35.4 | ) | ( i 20.7 | ) | ( i 4.0 | ) | ( i 47.2 | ) | i 11.2 | i 2.3 | ||||||||||||||||
Other
Revenues (f) | i 62.1 | i — | ( i 0.9 | ) | i — | i 82.3 | i — | i — | ||||||||||||||||||||
Total
Other Revenues | i 61.0 | ( i 35.4 | ) | ( i 21.6 | ) | ( i 4.0 | ) | i 35.1 | i 11.2 | i 2.3 | ||||||||||||||||||
Total
Revenues | $ | i 1,193.3 | $ | i 586.2 | $ | i 2,249.4 | $ | i 1,796.2 | $ | i 2,318.0 | $ | i 1,216.5 | $ | i 1,411.8 | ||||||||||||||
(a) | 2018
amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate. |
(b) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $ i 100
million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial. |
(c) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $ i 448 million. The
remaining affiliated amounts were immaterial. |
(d) | Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $ i 57 million primarily relating to barging, urea transloading and other transportation
services. The remaining affiliated amounts were immaterial. |
(e) | The alternative revenue for OPCo was primarily the $ i 48 million reduction in revenue relating to the Ohio Tax Reform settlement. |
(f) | Amounts
include affiliated and nonaffiliated revenues. |
Company | 2019 | 2020-2021 | 2022-2023 | After
2023 | Total | |||||||||||||||
(in millions) | ||||||||||||||||||||
AEP | $ | i 252.7 | $ | i 209.7 | $ | i 160.9 | $ | i 285.5 | $ | i 908.8 | ||||||||||
AEP
Texas | i 96.8 | i — | i — | i — | i 96.8 | |||||||||||||||
AEPTCo | i 225.8 | i — | i — | i — | i 225.8 | |||||||||||||||
APCo | i 36.4 | i 32.5 | i 25.5 | i 11.6 | i 106.0 | |||||||||||||||
I&M | i 7.2 | i 8.9 | i 8.8 | i 4.4 | i 29.3 | |||||||||||||||
OPCo | i 17.8 | i 7.5 | i — | i — | i 25.3 | |||||||||||||||
PSO | i 4.3 | i — | i — | i — | i 4.3 | |||||||||||||||
SWEPCo | i 9.8 | i — | i — | i — | i 9.8 | |||||||||||||||
Company | ||||||||
(in millions) | ||||||||
AEPTCo | $ | i 69.9 | $ | i 58.6 | ||||
APCo | i 41.4 | i 52.5 | ||||||
I&M | i 28.0 | i 35.3 | ||||||
OPCo | i 29.2 | i 46.1 | ||||||
PSO | i 10.3 | i 12.4 | ||||||
SWEPCo | i 17.8 | i 16.3 | ||||||
Exhibit | Description | Previously
Filed as Exhibit to: | ||
AEPTCo‡ File No. 333-217143 | ||||
*4.3 | Company
Order and Officer’s Certificate, between AEP Transmission Company, LLC and The Bank of New York Mellon Trust Company, N.A., as trustee, dated September 11, 2019, establishing the terms of the Series L Notes | |||
Exhibit | Description | AEP | AEP Texas | AEPTCo | APCo | I&M | OPCo | PSO | SWEPCo | |||||||||
10.1 | AEP
System Incentive Compensation Deferral Plan Amended and Restated effective June 1, 2019 | |||||||||||||||||
10.2 | AEP
Aircraft Timesharing Agreement dated October 1, 2019 between American Electric Power Service Corporation and Nicholas K. Akins | |||||||||||||||||
31(a) | Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||
31(b) | Certification
of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||
32(a) | Certification
of Chief Executive Officer Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code | |||||||||||||||||
32(b) | Certification
of Chief Financial Officer Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code | |||||||||||||||||
95 | Mine
Safety Disclosures | |||||||||||||||||
101.INS | XBRL
Instance Document | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | ||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema | X | X | X | X | X | X | X | X | |||||||||
101.CAL | XBRL
Taxonomy Extension Calculation Linkbase | X | X | X | X | X | X | X | X | |||||||||
101.DEF | XBRL
Taxonomy Extension Definition Linkbase | X | X | X | X | X | X | X | X | |||||||||
101.LAB | XBRL
Taxonomy Extension Label Linkbase | X | X | X | X | X | X | X | X | |||||||||
101.PRE | XBRL
Taxonomy Extension Presentation Linkbase | X | X | X | X | X | X | X | X | |||||||||
104 | Cover
Page Interactive Data File | Formatted as Inline XBRL and contained in Exhibit 101. | ||||||||||||||||
| This ‘10-Q’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 2/1/21 | ||||
| 4/1/20 | 8-K, DEFA14A | |||
| 3/31/20 | 10-Q, 4, 424B2 | |||
| 1/1/20 | ||||
| 12/31/19 | 10-K, 11-K, 4, 5 | |||
| 12/15/19 | ||||
| Filed on: | 10/24/19 | 8-K | ||
| 10/1/19 | 4 | |||
| For Period end: | 9/30/19 | 4 | ||
| 9/11/19 | 8-K | |||
| 6/30/19 | 10-Q, 4 | |||
| 6/1/19 | ||||
| 4/22/19 | ||||
| 3/31/19 | 10-Q, 4 | |||
| 2/21/19 | 10-K | |||
| 1/1/19 | ||||
| 12/31/18 | 10-K, 11-K, 4 | |||
| 12/15/18 | ||||
| 9/30/18 | 10-Q, 4 | |||
| 9/5/18 | 424B5, FWP | |||
| 7/31/18 | ||||
| 7/1/18 | ||||
| 6/30/18 | 10-Q, 4 | |||
| 3/31/18 | 10-Q, 4 | |||
| 1/1/18 | ||||
| 12/31/17 | 10-K, 11-K, 4 | |||
| 12/22/17 | ||||
| 6/30/16 | 10-Q, 4, 8-K | |||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/26/24 American Electric Power Co. Inc. 10-K 12/31/23 142:74M 2/23/23 American Electric Power Co. Inc. 10-K 12/31/22 147:99M 2/24/22 American Electric Power Co. Inc. 10-K 12/31/21 137:99M 2/25/21 American Electric Power Co. Inc. 10-K 12/31/20 143:99M |