|
Commission
|
|
Registrants;
|
|
|
|
I.R.S. Employer
|
||||
|
File Number
|
|
Address and Telephone Number
|
|
States of Incorporation
|
|
Identification Nos.
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3525
|
|
AMERICAN ELECTRIC POWER CO INC.
|
|
New York
|
|
13-4922640
|
||||
|
333-221643
|
|
AEP TEXAS INC.
|
|
Delaware
|
|
51-0007707
|
||||
|
333-217143
|
|
AEP TRANSMISSION COMPANY, LLC
|
|
Delaware
|
|
46-1125168
|
||||
|
1-3457
|
|
APPALACHIAN POWER COMPANY
|
|
Virginia
|
|
54-0124790
|
||||
|
1-3570
|
|
INDIANA MICHIGAN POWER COMPANY
|
|
Indiana
|
|
35-0410455
|
||||
|
1-6543
|
|
OHIO POWER COMPANY
|
|
Ohio
|
|
31-4271000
|
||||
|
0-343
|
|
PUBLIC SERVICE COMPANY OF OKLAHOMA
|
|
Oklahoma
|
|
73-0410895
|
||||
|
1-3146
|
|
SOUTHWESTERN ELECTRIC POWER COMPANY
|
|
Delaware
|
|
72-0323455
|
||||
|
|
|
1 Riverside Plaza,
|
Columbus,
|
Ohio
|
43215-2373
|
|
|
|
|
|
|
|
|
Telephone
|
(614)
|
716-1000
|
|
|
|
|
|
|
|
Registrant
|
|
Title of each class
|
|
Trading Symbol
|
|
Name of Each Exchange on Which Registered
|
|
American Electric Power Company Inc.
|
|
Common Stock, $6.50 par value
|
|
AEP
|
|
New York Stock Exchange
|
|
American Electric Power Company Inc.
|
|
6.125% Corporate Units
|
|
AEP PR B
|
|
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.
|
|||||
|
|
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).
|
|||||
|
|
Yes
|
x
|
|
No
|
☐
|
|
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
|
☐
|
|
No
|
x
|
|
|
Number of shares
of common stock
outstanding of the
Registrants as of
|
|
|
|
July 25, 2019
|
|
|
|
|
|
|
American Electric Power Company, Inc.
|
493,795,111
|
|
|
|
($6.50 par value)
|
|
|
AEP Texas Inc.
|
100
|
|
|
|
($0.01 par value)
|
|
|
AEP Transmission Company, LLC (a)
|
NA
|
|
|
|
|
|
|
Appalachian Power Company
|
13,499,500
|
|
|
|
(no par value)
|
|
|
Indiana Michigan Power Company
|
1,400,000
|
|
|
|
(no par value)
|
|
|
Ohio Power Company
|
27,952,473
|
|
|
|
(no par value)
|
|
|
Public Service Company of Oklahoma
|
9,013,000
|
|
|
|
($15 par value)
|
|
|
Southwestern Electric Power Company
|
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
|
||||
|
June 30, 2019
|
||||
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
AEPEP
|
|
AEP Energy Partners, Inc., a subsidiary of AEP dedicated to wholesale marketing and trading, hedging activities, asset management and commercial and industrial sales in the deregulated Ohio and Texas markets.
|
|
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.
|
|
ASC
|
|
Accounting Standard Codification.
|
|
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.
|
|
Term
|
|
Meaning
|
|
|
|
|
|
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.
|
|
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.
|
|
KPSC
|
|
Kentucky Public Service Commission.
|
|
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.
|
|
NO2
|
|
Nitrogen dioxide.
|
|
NOx
|
|
Nitrogen oxide.
|
|
Term
|
|
Meaning
|
|
|
|
|
|
NPDES
|
|
National Pollutant Discharge Elimination System.
|
|
NSR
|
|
New Source Review.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
Term
|
|
Meaning
|
|
|
|
|
|
Tax Reform
|
|
On December 22, 2017, President Trump signed into law legislation referred to as the “Tax Cuts and Jobs Act” (the TCJA). The TCJA includes significant changes to the Internal Revenue Code of 1986, including a reduction in the corporate federal income tax rate from 35% to 21% effective January 1, 2018.
|
|
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 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 pronouncements 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.
|
|
•
|
Texas Storm Cost Securitization - In March 2019, AEP Texas filed a request to securitize total estimated distribution-related system restoration costs with the PUCT in the amount of $230 million, which included estimated carrying costs. In June 2019, the PUCT issued a financing order approving the filing with minimal changes. Subject to market conditions, securitization bonds are expected to be issued in the third quarter of 2019. The remaining $95 million of estimated net transmission-related system restoration costs, including carrying charges, is expected to be recovered in the 2019 Texas Base Rate Case or through interim transmission base rate increases.
|
|
•
|
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
|
|
•
|
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 whereby 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. SWEPCo’s response to these replies is due in July 2019. As of June 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 after 2020 and 2026, respectively. The bill also provides for the recovery of existing renewable energy contracts on a bypassable basis through 2032 and includes a provision for recovery of certain legacy generation resources which will be allocated to all electric distribution utilities on a non-bypassable basis. Management is analyzing the impact of this legislation and at this time cannot estimate the impact on results of operations, cash flows or 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
|
|
Arkansas
|
|
February 2019
|
|
$
|
75.0
|
|
|
10.5%
|
|
9% - 9.5%
|
|
AEP Texas
|
|
Texas
|
|
May 2019
|
|
56.0
|
|
|
10.5%
|
|
(a)
|
|
|
I&M
|
|
Indiana
|
|
May 2019
|
|
172.0
|
|
|
10.5%
|
|
(b)
|
|
|
I&M
|
|
Michigan
|
|
June 2019
|
|
58.4
|
|
|
10.5%
|
|
(c)
|
|
|
(a)
|
Intervenor direct testimony to be filed by July 25, 2019. Commission Staff direct testimony to be filed by August 1, 2019.
|
|
(b)
|
Commission Staff/Intervenor direct testimony to be filed in the third quarter of 2019.
|
|
(c)
|
Commission Staff/Intervenor direct testimony to be filed in October 2019.
|
|
|
|
|
|
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
|
|
|
26.7
|
|
|
|
APCo
|
|
Sporn Plant, Units 1 and 3
|
|
300
|
|
|
15.6
|
|
|
|
APCo
|
|
Glen Lyn Plant
|
|
335
|
|
|
13.6
|
|
|
|
SWEPCo
|
|
Welsh Plant, Unit 2
|
|
528
|
|
|
50.6
|
|
|
|
Total
|
|
|
|
2,268
|
|
|
$
|
182.1
|
|
|
(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.
|
|
•
|
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
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Vertically Integrated Utilities
|
$
|
177.7
|
|
|
$
|
276.8
|
|
|
$
|
480.1
|
|
|
$
|
508.0
|
|
|
Transmission and Distribution Utilities
|
131.4
|
|
|
114.0
|
|
|
287.9
|
|
|
239.4
|
|
||||
|
AEP Transmission Holdco
|
154.5
|
|
|
101.1
|
|
|
278.7
|
|
|
205.1
|
|
||||
|
Generation & Marketing
|
9.4
|
|
|
38.8
|
|
|
49.5
|
|
|
57.0
|
|
||||
|
Corporate and Other
|
(11.7
|
)
|
|
(2.3
|
)
|
|
(62.1
|
)
|
|
(26.7
|
)
|
||||
|
Earnings Attributable to AEP Common Shareholders
|
$
|
461.3
|
|
|
$
|
528.4
|
|
|
$
|
1,034.1
|
|
|
$
|
982.8
|
|
|
•
|
A decrease 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.
|
|
•
|
Favorable rate proceedings in AEP’s various jurisdictions.
|
|
•
|
A decrease in weather-related usage.
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
Vertically Integrated Utilities
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Revenues
|
|
$
|
2,123.8
|
|
|
$
|
2,349.0
|
|
|
$
|
4,527.1
|
|
|
$
|
4,757.0
|
|
|
Fuel and Purchased Electricity
|
|
699.6
|
|
|
808.0
|
|
|
1,556.0
|
|
|
1,665.8
|
|
||||
|
Gross Margin
|
|
1,424.2
|
|
|
1,541.0
|
|
|
2,971.1
|
|
|
3,091.2
|
|
||||
|
Other Operation and Maintenance
|
|
684.1
|
|
|
703.8
|
|
|
1,374.2
|
|
|
1,443.8
|
|
||||
|
Depreciation and Amortization
|
|
359.0
|
|
|
312.7
|
|
|
715.3
|
|
|
626.0
|
|
||||
|
Taxes Other Than Income Taxes
|
|
113.2
|
|
|
107.7
|
|
|
229.2
|
|
|
217.6
|
|
||||
|
Operating Income
|
|
267.9
|
|
|
416.8
|
|
|
652.4
|
|
|
803.8
|
|
||||
|
Other Income
|
|
2.2
|
|
|
4.7
|
|
|
3.5
|
|
|
10.1
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
16.0
|
|
|
7.3
|
|
|
26.7
|
|
|
14.7
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
16.8
|
|
|
17.6
|
|
|
33.8
|
|
|
35.7
|
|
||||
|
Interest Expense
|
|
(143.0
|
)
|
|
(140.9
|
)
|
|
(282.0
|
)
|
|
(278.8
|
)
|
||||
|
Income Before Income Tax Expense (Benefit) and Equity Earnings
|
|
159.9
|
|
|
305.5
|
|
|
434.4
|
|
|
585.5
|
|
||||
|
Income Tax Expense (Benefit)
|
|
(18.1
|
)
|
|
28.3
|
|
|
(46.5
|
)
|
|
76.0
|
|
||||
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
0.8
|
|
|
0.7
|
|
|
1.5
|
|
|
1.2
|
|
||||
|
Net Income
|
|
178.8
|
|
|
277.9
|
|
|
482.4
|
|
|
510.7
|
|
||||
|
Net Income Attributable to Noncontrolling Interests
|
|
1.1
|
|
|
1.1
|
|
|
2.3
|
|
|
2.7
|
|
||||
|
Earnings Attributable to AEP Common Shareholders
|
|
$
|
177.7
|
|
|
$
|
276.8
|
|
|
$
|
480.1
|
|
|
$
|
508.0
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
6,315
|
|
|
7,545
|
|
|
15,531
|
|
|
17,117
|
|
|
Commercial
|
5,710
|
|
|
6,189
|
|
|
11,343
|
|
|
11,976
|
|
|
Industrial
|
8,865
|
|
|
9,072
|
|
|
17,410
|
|
|
17,650
|
|
|
Miscellaneous
|
547
|
|
|
588
|
|
|
1,093
|
|
|
1,141
|
|
|
Total Retail (a)
|
21,437
|
|
|
23,394
|
|
|
45,377
|
|
|
47,884
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale (b)
|
4,826
|
|
|
4,986
|
|
|
10,630
|
|
|
10,724
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
26,263
|
|
|
28,380
|
|
|
56,007
|
|
|
58,608
|
|
|
(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
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Eastern Region
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
99
|
|
|
207
|
|
|
1,670
|
|
|
1,844
|
|
|
Normal – Heating (b)
|
142
|
|
|
138
|
|
|
1,737
|
|
|
1,740
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
378
|
|
|
480
|
|
|
379
|
|
|
486
|
|
|
Normal – Cooling (b)
|
333
|
|
|
328
|
|
|
338
|
|
|
333
|
|
|
|
|
|
|
|
|
|
|
||||
|
Western Region
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
26
|
|
|
93
|
|
|
967
|
|
|
974
|
|
|
Normal – Heating (b)
|
35
|
|
|
32
|
|
|
901
|
|
|
907
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
651
|
|
|
901
|
|
|
662
|
|
|
937
|
|
|
Normal – Cooling (b)
|
699
|
|
|
692
|
|
|
727
|
|
|
719
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Earnings Attributable to AEP Common Shareholders from Vertically Integrated Utilities
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
276.8
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(67.2
|
)
|
|
|
Off-system Sales
|
|
(2.8
|
)
|
|
|
Transmission Revenues
|
|
(49.6
|
)
|
|
|
Other Revenues
|
|
2.8
|
|
|
|
Total Change in Gross Margin
|
|
(116.8
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
19.7
|
|
|
|
Depreciation and Amortization
|
|
(46.3
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(5.5
|
)
|
|
|
Other Income
|
|
(2.5
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
8.7
|
|
|
|
Non-Service Cost Components of Net Periodic Pension Cost
|
|
(0.8
|
)
|
|
|
Interest Expense
|
|
(2.1
|
)
|
|
|
Total Change in Expenses and Other
|
|
(28.8
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
46.4
|
|
|
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
0.1
|
|
|
|
|
|
|
||
|
Second Quarter of 2019
|
|
$
|
177.7
|
|
|
•
|
Retail Margins decreased $67 million primarily due to the following:
|
|
•
|
An $81 million decrease in weather-related usage primarily in the residential class.
|
|
•
|
A $48 million decrease in weather-normalized retail margins across all classes.
|
|
•
|
A $9 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
|
•
|
The effect of rate proceedings in AEP’s service territories which included:
|
|
•
|
A $28 million increase from rate proceedings at I&M, inclusive of a $24 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below.
|
|
•
|
A $13 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.
|
|
•
|
An $11 million increase at PSO due to new base rates implemented in April 2019.
|
|
•
|
A $6 million increase at APCo and WPCo due to base rate increases in West Virginia implemented in March 2019.
|
|
•
|
A $5 million increase at APCo and WPCo due to revenue from rate riders in West Virginia. This increase was partially offset in other expense items below.
|
|
•
|
Transmission Revenues decreased $50 million primarily due to the following:
|
|
•
|
A $40 million decrease in SWEPCo’s annual SPP Transmission formula rate true-up. This decrease was partially offset by a decrease in transmission expenses in SPP.
|
|
•
|
A $9 million decrease in I&M’s annual PJM Transmission formula rate true-up.
|
|
•
|
Other Operation and Maintenance expenses decreased $20 million primarily due to the following:
|
|
•
|
A $58 million decrease due to SPP transmission services including the annual formula rate true-up.
|
|
•
|
A $17 million decrease due to Wind Catcher Project expenses incurred in 2018 for SWEPCo and PSO.
|
|
•
|
A $15 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 planned plant outage and maintenance expenses primarily for I&M and SWEPCo.
|
|
•
|
A $3 million decrease in expense at APCo due to the extinguishment of certain regulatory asset balances in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement. This decrease was offset in Retail Margins above.
|
|
•
|
A $43 million increase due to PJM transmission services including the annual formula rate true-up.
|
|
•
|
A $12 million increase at APCo due to 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 employee-related expenses.
|
|
•
|
A $6 million increase in storm-related expenses primarily at SWEPCo.
|
|
•
|
A $5 million increase in customer related expenses.
|
|
•
|
A $3 million increase due to North Central Wind Energy Facilities initiative expenses for SWEPCo and PSO.
|
|
•
|
Depreciation and Amortization expenses increased $46 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 $6 million primarily due to an increase in property taxes driven by an increase in utility plant.
|
|
•
|
Allowance for Equity Funds Used During Construction increased $9 million primarily due to the following:
|
|
•
|
A $5 million increase primarily due to various increases in equity rates at I&M, APCo and PSO and increased projects at I&M.
|
|
•
|
A $2 million increase due to the FERC’s approval of a settlement agreement.
|
|
•
|
A $2 million increase due to recent FERC audit findings.
|
|
•
|
Income Tax Expense (Benefit) decreased $46 million primarily due to $30 million of increased amortization of Excess ADIT not subject to normalization requirements. This decrease was partially offset in Gross Margin above.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Earnings Attributable to AEP Common Shareholders from Vertically Integrated Utilities
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
508.0
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(69.7
|
)
|
|
|
Off-system Sales
|
|
(9.4
|
)
|
|
|
Transmission Revenues
|
|
(40.2
|
)
|
|
|
Other Revenues
|
|
(0.8
|
)
|
|
|
Total Change in Gross Margin
|
|
(120.1
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
69.6
|
|
|
|
Depreciation and Amortization
|
|
(89.3
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(11.6
|
)
|
|
|
Other Income
|
|
(6.6
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
12.0
|
|
|
|
Non-Service Cost Components of Net Periodic Pension Cost
|
|
(1.9
|
)
|
|
|
Interest Expense
|
|
(3.2
|
)
|
|
|
Total Change in Expenses and Other
|
|
(31.0
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
122.5
|
|
|
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
0.3
|
|
|
|
Net Income Attributable to Noncontrolling Interests
|
|
0.4
|
|
|
|
|
|
|
||
|
Six Months Ended June 30, 2019
|
|
$
|
480.1
|
|
|
•
|
Retail Margins decreased $70 million primarily due to the following:
|
|
•
|
A $95 million decrease in weather-related usage across all regions primarily in the residential class.
|
|
•
|
A $72 million decrease in weather-normalized retail margins across all classes.
|
|
•
|
A $34 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
|
•
|
The effect of rate proceedings in AEP’s service territories which included:
|
|
•
|
A $75 million increase from rate proceedings at I&M, inclusive of a $33 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below.
|
|
•
|
A $22 million increase at PSO due to new base rates implemented in April 2019 and March 2018.
|
|
•
|
A $10 million increase due to the timing of recovery of the Indiana PJM/OSS rider at I&M. This increase was partially offset in other expense items below.
|
|
•
|
An $8 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 $7 million increase at APCo and WPCo due to base rate increases in West Virginia implemented in March 2019.
|
|
•
|
Margins from Off-system Sales decreased $9 million primarily due to mid-year 2018 changes in the OSS sharing mechanism at I&M.
|
|
•
|
Transmission Revenues decreased $40 million primarily due to the following:
|
|
•
|
A $40 million decrease in SWEPCo’s annual SPP Transmission formula rate true-up. This decrease was partially offset by a decrease in transmission expenses in SPP.
|
|
•
|
A $10 million decrease in I&M’s annual PJM Transmission formula rate true-up.
|
|
•
|
A $13 million increase primarily due to 2018 provisions for refunds at APCo.
|
|
•
|
Other Operation and Maintenance expenses decreased $70 million primarily due to the following:
|
|
•
|
A $64 million decrease due to SPP transmission services including the annual formula rate true-up.
|
|
•
|
A $34 million decrease in planned plant outage and maintenance expenses primarily for I&M, SWEPCo, KPCo and APCo.
|
|
•
|
A $31 million decrease due to Wind Catcher Project expenses incurred in 2018 for SWEPCo and PSO.
|
|
•
|
A $26 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 $9 million decrease in estimated expense for claims related to asbestos exposure.
|
|
•
|
A $6 million decrease in expense at APCo due to the extinguishment of certain regulatory asset balances in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement. This decrease was offset in Retail Margins above.
|
|
•
|
A $47 million increase due to PJM transmission services including the annual formula rate true-up.
|
|
•
|
A $26 million increase in employee-related expenses.
|
|
•
|
A $13 million increase at APCo due to 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 $7 million increase in storm-related expenses primarily at SWEPCo.
|
|
•
|
A $3 million increase due to North Central Wind Energy Facilities initiative expenses for SWEPCo and PSO.
|
|
•
|
Depreciation and Amortization expenses increased $89 million primarily due to a higher depreciable base and increased depreciation rates approved at APCo, I&M, PSO and SWEPCo.
|
|
•
|
Taxes Other Than Income Taxes increased $12 million primarily due to the following:
|
|
•
|
A $9 million increase in property taxes driven by an increase in utility plant.
|
|
•
|
A $4 million increase at APCo in West Virginia business and occupational taxes.
|
|
•
|
Other Income decreased $7 million primarily due to a decrease in carrying charges for certain riders at I&M.
|
|
•
|
Allowance for Equity Funds Used During Construction increased $12 million primarily due to the following:
|
|
•
|
A $7 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.
|
|
•
|
Income Tax Expense (Benefit) decreased $123 million primarily due to $89 million of increased amortization of Excess ADIT not subject to normalization requirements. This decrease was partially offset in Gross Margin above.
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
Transmission and Distribution Utilities
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Revenues
|
|
$
|
1,045.7
|
|
|
$
|
1,137.0
|
|
|
$
|
2,267.7
|
|
|
$
|
2,299.4
|
|
|
Purchased Electricity
|
|
163.7
|
|
|
196.7
|
|
|
393.4
|
|
|
441.3
|
|
||||
|
Amortization of Generation Deferrals
|
|
24.1
|
|
|
56.4
|
|
|
56.5
|
|
|
115.0
|
|
||||
|
Gross Margin
|
|
857.9
|
|
|
883.9
|
|
|
1,817.8
|
|
|
1,743.1
|
|
||||
|
Other Operation and Maintenance
|
|
410.4
|
|
|
379.0
|
|
|
816.3
|
|
|
731.7
|
|
||||
|
Depreciation and Amortization
|
|
193.4
|
|
|
184.4
|
|
|
377.1
|
|
|
357.0
|
|
||||
|
Taxes Other Than Income Taxes
|
|
139.9
|
|
|
132.6
|
|
|
285.4
|
|
|
270.0
|
|
||||
|
Operating Income
|
|
114.2
|
|
|
187.9
|
|
|
339.0
|
|
|
384.4
|
|
||||
|
Interest and Investment Income (Loss)
|
|
1.8
|
|
|
(0.1
|
)
|
|
3.1
|
|
|
1.3
|
|
||||
|
Carrying Costs Income
|
|
0.2
|
|
|
0.6
|
|
|
0.4
|
|
|
1.3
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
5.6
|
|
|
7.2
|
|
|
12.5
|
|
|
15.2
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
7.5
|
|
|
8.1
|
|
|
15.1
|
|
|
16.3
|
|
||||
|
Interest Expense
|
|
(45.2
|
)
|
|
(62.0
|
)
|
|
(107.2
|
)
|
|
(122.1
|
)
|
||||
|
Income Before Income Tax Expense (Benefit)
|
|
84.1
|
|
|
141.7
|
|
|
262.9
|
|
|
296.4
|
|
||||
|
Income Tax Expense (Benefit)
|
|
(47.3
|
)
|
|
27.7
|
|
|
(25.0
|
)
|
|
57.0
|
|
||||
|
Net Income
|
|
131.4
|
|
|
114.0
|
|
|
287.9
|
|
|
239.4
|
|
||||
|
Net Income Attributable to Noncontrolling Interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Earnings Attributable to AEP Common Shareholders
|
|
$
|
131.4
|
|
|
$
|
114.0
|
|
|
$
|
287.9
|
|
|
$
|
239.4
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
5,799
|
|
|
6,409
|
|
|
12,346
|
|
|
13,206
|
|
|
Commercial
|
6,232
|
|
|
6,417
|
|
|
11,850
|
|
|
12,103
|
|
|
Industrial
|
5,864
|
|
|
6,194
|
|
|
11,635
|
|
|
11,868
|
|
|
Miscellaneous
|
196
|
|
|
194
|
|
|
372
|
|
|
365
|
|
|
Total Retail (a)(b)
|
18,091
|
|
|
19,214
|
|
|
36,203
|
|
|
37,542
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale (c)
|
440
|
|
|
534
|
|
|
1,078
|
|
|
1,201
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
18,531
|
|
|
19,748
|
|
|
37,281
|
|
|
38,743
|
|
|
(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
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Eastern Region
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
114
|
|
|
274
|
|
|
2,006
|
|
|
2,158
|
|
|
Normal – Heating (b)
|
189
|
|
|
186
|
|
|
2,066
|
|
|
2,070
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
303
|
|
|
454
|
|
|
304
|
|
|
458
|
|
|
Normal – Cooling (b)
|
298
|
|
|
291
|
|
|
301
|
|
|
294
|
|
|
|
|
|
|
|
|
|
|
||||
|
Western Region
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
3
|
|
|
4
|
|
|
180
|
|
|
234
|
|
|
Normal – Heating (b)
|
3
|
|
|
3
|
|
|
190
|
|
|
194
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (d)
|
970
|
|
|
992
|
|
|
1,092
|
|
|
1,188
|
|
|
Normal – Cooling (b)
|
934
|
|
|
927
|
|
|
1,057
|
|
|
1,046
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Earnings Attributable to AEP Common Shareholders from Transmission and Distribution Utilities
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
114.0
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(69.5
|
)
|
|
|
Off-system Sales
|
|
13.0
|
|
|
|
Transmission Revenues
|
|
28.5
|
|
|
|
Other Revenues
|
|
2.0
|
|
|
|
Total Change in Gross Margin
|
|
(26.0
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(31.4
|
)
|
|
|
Depreciation and Amortization
|
|
(9.0
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(7.3
|
)
|
|
|
Interest and Investment Income
|
|
1.9
|
|
|
|
Carrying Costs Income
|
|
(0.4
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
(1.6
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.6
|
)
|
|
|
Interest Expense
|
|
16.8
|
|
|
|
Total Change in Expenses and Other
|
|
(31.6
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
75.0
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
131.4
|
|
|
•
|
Retail Margins decreased $70 million primarily due to the following:
|
|
•
|
A $60 million net decrease in Ohio Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
A $6 million decrease in revenues associated with vegetation management riders 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 rider revenues associated with the DIR in Ohio. This decrease was partially offset in various expenses below.
|
|
•
|
A $6 million decrease in affiliated PPA capacity revenues in Texas. This decrease was offset by a corresponding increase in Margins from Off-system Sales below.
|
|
•
|
A $12 million increase in revenues associated with Ohio smart grid riders. This increase was partially offset by increases in other expense items below.
|
|
•
|
An $8 million increase due to the recovery of higher current year losses from a power contract with OVEC in Ohio. This increase was offset by a corresponding decrease in Margins from Off-system Sales below.
|
|
•
|
Margins from Off-system Sales increased $13 million primarily due to the following:
|
|
•
|
A $21 million increase due to higher affiliated PPA revenues in Texas. This increase was partially offset by a corresponding increase in Other Operation and Maintenance expenses below.
|
|
•
|
An $8 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 by a corresponding increase in Retail Margins above.
|
|
•
|
Transmission Revenues increased $29 million primarily due to the recovery of increased transmission investment in ERCOT.
|
|
•
|
Other Operation and Maintenance expenses increased $31 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 by a corresponding decrease in Income Tax Expense (Benefit) below.
|
|
•
|
A $35 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
|
•
|
A $16 million increase in affiliated PPA expenses in Texas. This increase was offset by an increase in Margins from Off-system Sales above.
|
|
•
|
An $88 million decrease in transmission expenses that were fully recovered in rate riders/trackers within Gross Margin above.
|
|
•
|
Depreciation and Amortization expenses increased $9 million primarily due to the following:
|
|
•
|
A $19 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
|
•
|
A $2 million increase in depreciation expense related to the Oklaunion Power Station.
|
|
•
|
A $14 million decrease in Ohio recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
|
•
|
Taxes Other Than Income Taxes increased $7 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 $17 million primarily 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.
|
|
•
|
Income Tax Expense (Benefit) decreased $75 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 in Other Operation and Maintenance expenses above.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Earnings Attributable to AEP Common Shareholders from Transmission and Distribution Utilities
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
239.4
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(11.5
|
)
|
|
|
Off-system Sales
|
|
33.9
|
|
|
|
Transmission Revenues
|
|
50.9
|
|
|
|
Other Revenues
|
|
1.4
|
|
|
|
Total Change in Gross Margin
|
|
74.7
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(84.6
|
)
|
|
|
Depreciation and Amortization
|
|
(20.1
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(15.4
|
)
|
|
|
Interest and Investment Income
|
|
1.8
|
|
|
|
Carrying Costs Income
|
|
(0.9
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
(2.7
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(1.2
|
)
|
|
|
Interest Expense
|
|
14.9
|
|
|
|
Total Change in Expenses and Other
|
|
(108.2
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
82.0
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
287.9
|
|
|
•
|
Retail Margins decreased $12 million primarily due to the following:
|
|
•
|
A $43 million net decrease in Ohio Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
A $13 million decrease in weather-related usage in Texas primarily due to a 23% decrease in heating degree days and an 8% decrease in cooling degree days.
|
|
•
|
A $12 million decrease in revenues associated with vegetation management riders in Ohio. This decrease was offset in Other Operation and Maintenance expenses below.
|
|
•
|
An $11 million decrease in affiliated PPA capacity revenues in Texas. This decrease was offset by a corresponding increase in Margins from Off-system Sales below.
|
|
•
|
A $10 million net decrease in margin in Ohio for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019.
|
|
•
|
An $8 million decrease in rider revenues associated with the DIR in Ohio. This decrease was partially offset in various expenses below.
|
|
•
|
An $8 million decrease in Texas revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
A $58 million increase due to a reversal of a regulatory provision in Ohio.
|
|
•
|
A $22 million increase in revenues associated with Ohio smart grid riders. This increase was partially offset by increases in other expense items below.
|
|
•
|
A $9 million increase due to the recovery of higher current year losses from a power contract with OVEC in Ohio. This increase was offset by a corresponding decrease in Margins from Off-system Sales below.
|
|
•
|
Margins from Off-system Sales increased $34 million primarily due to due to the following:
|
|
•
|
A $43 million increase due to higher affiliated PPA revenues in Texas. This increase was partially offset by a corresponding increase in Other Operation and Maintenance expenses below.
|
|
•
|
A $9 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 by a corresponding increase in Retail Margins above.
|
|
•
|
Transmission Revenues increased $51 million primarily due to the following:
|
|
•
|
A $38 million increase primarily due to recovery of increased transmission investment in ERCOT.
|
|
•
|
A $13 million increase in Ohio primarily due to 2018 provisions for refunds.
|
|
•
|
Other Operation and Maintenance expenses increased $85 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 by a corresponding decrease in Income Tax Expense (Benefit) below.
|
|
•
|
A $45 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
|
•
|
A $33 million increase in affiliated PPA expenses in Texas. This increase was offset by an increase in Margins from Off-system Sales above.
|
|
•
|
A $65 million decrease in transmission expenses that were fully recovered in rate riders/trackers within Gross Margin above.
|
|
•
|
Depreciation and Amortization expenses increased $20 million primarily due to the following:
|
|
•
|
A $36 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
|
•
|
A $4 million increase in depreciation expense related to the Oklaunion Power Station.
|
|
•
|
A $24 million decrease in Ohio recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
|
•
|
Taxes Other Than Income Taxes increased $15 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 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.
|
|
•
|
Income Tax Expense (Benefit) decreased $82 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 in Other Operation and Maintenance expenses above.
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
AEP Transmission Holdco
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Transmission Revenues
|
|
$
|
278.9
|
|
|
$
|
212.5
|
|
|
$
|
535.3
|
|
|
$
|
418.0
|
|
|
Other Operation and Maintenance
|
|
22.9
|
|
|
23.4
|
|
|
45.2
|
|
|
45.3
|
|
||||
|
Depreciation and Amortization
|
|
44.6
|
|
|
33.8
|
|
|
86.4
|
|
|
65.6
|
|
||||
|
Taxes Other Than Income Taxes
|
|
43.5
|
|
|
37.5
|
|
|
86.1
|
|
|
70.2
|
|
||||
|
Operating Income
|
|
167.9
|
|
|
117.8
|
|
|
317.6
|
|
|
236.9
|
|
||||
|
Other Income
|
|
0.8
|
|
|
0.4
|
|
|
1.5
|
|
|
0.7
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
28.8
|
|
|
16.3
|
|
|
40.1
|
|
|
31.6
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
0.7
|
|
|
0.7
|
|
|
1.3
|
|
|
1.4
|
|
||||
|
Interest Expense
|
|
(23.0
|
)
|
|
(21.5
|
)
|
|
(46.0
|
)
|
|
(42.6
|
)
|
||||
|
Income Before Income Tax Expense and Equity Earnings
|
|
175.2
|
|
|
113.7
|
|
|
314.5
|
|
|
228.0
|
|
||||
|
Income Tax Expense
|
|
38.4
|
|
|
28.3
|
|
|
70.3
|
|
|
55.8
|
|
||||
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
18.6
|
|
|
16.5
|
|
|
36.4
|
|
|
34.5
|
|
||||
|
Net Income
|
|
155.4
|
|
|
101.9
|
|
|
280.6
|
|
|
206.7
|
|
||||
|
Net Income Attributable to Noncontrolling Interests
|
|
0.9
|
|
|
0.8
|
|
|
1.9
|
|
|
1.6
|
|
||||
|
Earnings Attributable to AEP Common Shareholders
|
|
$
|
154.5
|
|
|
$
|
101.1
|
|
|
$
|
278.7
|
|
|
$
|
205.1
|
|
|
|
|
June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in millions)
|
||||||
|
Plant in Service
|
|
$
|
7,447.3
|
|
|
$
|
6,158.5
|
|
|
Construction Work in Progress
|
|
1,883.1
|
|
|
1,626.0
|
|
||
|
Accumulated Depreciation and Amortization
|
|
350.2
|
|
|
219.0
|
|
||
|
Total Transmission Property, Net
|
|
$
|
8,980.2
|
|
|
$
|
7,565.5
|
|
|
Second Quarter of 2018
|
|
$
|
101.1
|
|
|
|
|
|
||
|
Changes in Transmission Revenues:
|
|
|
||
|
Transmission Revenues
|
|
66.4
|
|
|
|
Total Change in Transmission Revenues
|
|
66.4
|
|
|
|
|
|
|
||
|
Changes in Expenses and Other:
|
|
|
||
|
Other Operation and Maintenance
|
|
0.5
|
|
|
|
Depreciation and Amortization
|
|
(10.8
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(6.0
|
)
|
|
|
Other Income
|
|
0.4
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
12.5
|
|
|
|
Non-Service Cost Components of Net Periodic Pension Cost
|
|
—
|
|
|
|
Interest Expense
|
|
(1.5
|
)
|
|
|
Total Change in Expenses and Other
|
|
(4.9
|
)
|
|
|
|
|
|
||
|
Income Tax Expense
|
|
(10.1
|
)
|
|
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
2.1
|
|
|
|
Net Income Attributable to Noncontrolling Interests
|
|
(0.1
|
)
|
|
|
|
|
|
||
|
Second Quarter of 2019
|
|
$
|
154.5
|
|
|
•
|
Transmission Revenues increased $66 million primarily due to continued investment in transmission assets.
|
|
•
|
Depreciation and Amortization expenses increased $11 million primarily due to a higher depreciable base.
|
|
•
|
Taxes Other Than Income Taxes increased $6 million primarily due to higher property taxes as a result of increased transmission investment.
|
|
•
|
Allowance for Equity Funds Used During Construction increased $13 million primarily due to the following:
|
|
•
|
A $12 million increase due to the FERC’s approval of a settlement agreement.
|
|
•
|
A $5 million increase due to increased transmission investment resulting in a higher CWIP balance.
|
|
•
|
A $4 million decrease due to recent FERC audit findings.
|
|
•
|
Income Tax Expense increased $10 million primarily due to higher pretax book income with a partial offset due to the FERC’s approval of a settlement agreement.
|
|
Six Months Ended June 30, 2018
|
|
$
|
205.1
|
|
|
|
|
|
||
|
Changes in Transmission Revenues:
|
|
|
||
|
Transmission Revenues
|
|
117.3
|
|
|
|
Total Change in Transmission Revenues
|
|
117.3
|
|
|
|
|
|
|
||
|
Changes in Expenses and Other:
|
|
|
||
|
Other Operation and Maintenance
|
|
0.1
|
|
|
|
Depreciation and Amortization
|
|
(20.8
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(15.9
|
)
|
|
|
Other Income
|
|
0.8
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
8.5
|
|
|
|
Non-Service Cost Components of Net Periodic Pension Cost
|
|
(0.1
|
)
|
|
|
Interest Expense
|
|
(3.4
|
)
|
|
|
Total Change in Expenses and Other
|
|
(30.8
|
)
|
|
|
|
|
|
||
|
Income Tax Expense
|
|
(14.5
|
)
|
|
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
1.9
|
|
|
|
Net Income Attributable to Noncontrolling Interests
|
|
(0.3
|
)
|
|
|
|
|
|
||
|
Six Months Ended June 30, 2019
|
|
$
|
278.7
|
|
|
•
|
Transmission Revenues increased $117 million primarily due to continued investment in transmission assets.
|
|
•
|
Depreciation and Amortization expenses increased $21 million primarily due to a higher depreciable base.
|
|
•
|
Taxes Other Than Income Taxes increased $16 million primarily due to higher property taxes as a result of increased transmission investment.
|
|
•
|
Allowance for Equity Funds Used During Construction increased $9 million primarily due to the following:
|
|
•
|
A $12 million increase due to the FERC’s approval of a settlement agreement.
|
|
•
|
A $10 million increase due to increased transmission investment resulting in a higher CWIP balance.
|
|
•
|
A $13 million decrease due to recent FERC audit findings.
|
|
•
|
Income Tax Expense increased $15 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
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
Generation & Marketing
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Revenues
|
|
$
|
412.7
|
|
|
$
|
460.7
|
|
|
$
|
894.5
|
|
|
$
|
965.8
|
|
|
Fuel, Purchased Electricity and Other
|
|
330.7
|
|
|
354.0
|
|
|
714.0
|
|
|
762.8
|
|
||||
|
Gross Margin
|
|
82.0
|
|
|
106.7
|
|
|
180.5
|
|
|
203.0
|
|
||||
|
Other Operation and Maintenance
|
|
63.4
|
|
|
56.8
|
|
|
114.0
|
|
|
124.4
|
|
||||
|
Depreciation and Amortization
|
|
15.6
|
|
|
7.5
|
|
|
28.5
|
|
|
14.4
|
|
||||
|
Taxes Other Than Income Taxes
|
|
3.6
|
|
|
3.4
|
|
|
7.4
|
|
|
6.6
|
|
||||
|
Operating Income (Loss)
|
|
(0.6
|
)
|
|
39.0
|
|
|
30.6
|
|
|
57.6
|
|
||||
|
Interest and Investment Income
|
|
1.8
|
|
|
3.8
|
|
|
4.1
|
|
|
6.3
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
3.7
|
|
|
3.8
|
|
|
7.4
|
|
|
7.7
|
|
||||
|
Interest Expense
|
|
(7.2
|
)
|
|
(4.0
|
)
|
|
(11.0
|
)
|
|
(7.9
|
)
|
||||
|
Income (Loss) Before Income Tax Expense (Benefit) and Equity Earnings (Loss)
|
|
(2.3
|
)
|
|
42.6
|
|
|
31.1
|
|
|
63.7
|
|
||||
|
Income Tax Expense (Benefit)
|
|
(9.6
|
)
|
|
4.3
|
|
|
(15.4
|
)
|
|
7.3
|
|
||||
|
Equity Earnings (Loss) of Unconsolidated Subsidiaries
|
|
(2.1
|
)
|
|
0.3
|
|
|
(2.1
|
)
|
|
0.3
|
|
||||
|
Net Income
|
|
5.2
|
|
|
38.6
|
|
|
44.4
|
|
|
56.7
|
|
||||
|
Net Loss Attributable to Noncontrolling Interests
|
|
(4.2
|
)
|
|
(0.2
|
)
|
|
(5.1
|
)
|
|
(0.3
|
)
|
||||
|
Earnings Attributable to AEP Common Shareholders
|
|
$
|
9.4
|
|
|
$
|
38.8
|
|
|
$
|
49.5
|
|
|
$
|
57.0
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of MWhs)
|
||||||||||
|
Fuel Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal
|
1
|
|
|
4
|
|
|
2
|
|
|
6
|
|
|
Renewables
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
Total MWhs
|
2
|
|
|
4
|
|
|
3
|
|
|
6
|
|
|
Reconciliation of Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Earnings Attributable to AEP Common Shareholders from Generation & Marketing
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
38.8
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Generation
|
|
(10.8
|
)
|
|
|
Retail, Trading and Marketing
|
|
(19.1
|
)
|
|
|
Other Revenues
|
|
5.2
|
|
|
|
Total Change in Gross Margin
|
|
(24.7
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(6.6
|
)
|
|
|
Depreciation and Amortization
|
|
(8.1
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(0.2
|
)
|
|
|
Interest and Investment Income
|
|
(2.0
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.1
|
)
|
|
|
Interest Expense
|
|
(3.2
|
)
|
|
|
Total Change in Expenses and Other
|
|
(20.2
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
13.9
|
|
|
|
Equity Earnings (Loss) of Unconsolidated Subsidiaries
|
|
(2.4
|
)
|
|
|
Net Loss Attributable to Noncontrolling Interests
|
|
4.0
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
9.4
|
|
|
•
|
Generation decreased $11 million primarily due to the reduction of energy margins in 2019, a reduction in revenues due to the retirement of the Stuart Plant in 2018 and outages at the Conesville Plant.
|
|
•
|
Retail, Trading and Marketing decreased $19 million due to higher MTM hedge losses offset by higher retail margins due to lower market costs and higher delivered volumes.
|
|
•
|
Other Revenues increased $5 million primarily due to the Sempra Renewables LLC acquisition and other renewable projects placed in service.
|
|
•
|
Other Operation and Maintenance expenses increased $7 million primarily due to the Sempra Renewables LLC acquisition costs and increased investments in wind farms and renewable energy sources.
|
|
•
|
Depreciation and Amortization expenses increased $8 million due to a higher depreciable base from increased investments in wind farms and renewable energy sources.
|
|
•
|
Interest Expense increased $3 million primarily due to increased borrowing costs related to the Sempra Renewables LLC acquisition.
|
|
•
|
Income Tax Expense (Benefit) decreased $14 million primarily due to an increase in projected renewable income tax credits primarily driven by the Sempra Renewables LLC acquisition and a decrease in pretax book income.
|
|
•
|
Net Loss Attributable to Noncontrolling Interests increased $4 million primarily due to the Sempra Renewables LLC acquisition.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Earnings Attributable to AEP Common Shareholders from Generation & Marketing
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
57.0
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Generation
|
|
(44.5
|
)
|
|
|
Retail, Trading and Marketing
|
|
15.1
|
|
|
|
Other Revenues
|
|
6.9
|
|
|
|
Total Change in Gross Margin
|
|
(22.5
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
10.4
|
|
|
|
Depreciation and Amortization
|
|
(14.1
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(0.8
|
)
|
|
|
Interest and Investment Income
|
|
(2.2
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.3
|
)
|
|
|
Interest Expense
|
|
(3.1
|
)
|
|
|
Total Change in Expenses and Other
|
|
(10.1
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
22.7
|
|
|
|
Equity Earnings (Loss) of Unconsolidated Subsidiaries
|
|
(2.4
|
)
|
|
|
Net Loss Attributable to Noncontrolling Interests
|
|
4.8
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
49.5
|
|
|
•
|
Generation decreased $45 million primarily due to the reduction of energy margins in 2019, a reduction in revenues due to the retirement of the Stuart Plant in 2018 and outages at the Conesville Plant.
|
|
•
|
Retail, Trading and Marketing increased $15 million primarily due to higher retail margins due to lower market costs and higher delivered volumes and reduced MTM hedge losses.
|
|
•
|
Other Revenues increased $7 million primarily due to the Sempra Renewables LLC acquisition and other renewable projects placed in service.
|
|
•
|
Other Operation and Maintenance expenses decreased $10 million primarily due to the closure of the Stuart Plant in 2018 and lower operating costs at the Conesville Plant partially offset by expenses related to the Sempra Renewables LLC acquisition costs and increased investments in wind farms and renewable energy sources.
|
|
•
|
Depreciation and Amortization expenses increased $14 million due to a higher depreciable base from increased investments in wind farms and renewable energy sources.
|
|
•
|
Interest Expense increased $3 million primarily due to increased borrowing costs related to the Sempra Renewables LLC acquisition.
|
|
•
|
Income Tax Expense (Benefit) decreased $23 million primarily due to an increase in projected renewable income tax credits primarily driven by the Sempra Renewables LLC acquisition and a decrease in pretax book income.
|
|
•
|
Net Loss Attributable to Noncontrolling Interests increased $5 million primarily due to the Sempra Renewables LLC acquisition.
|
|
•
|
An $18 million increase in interest expense as a result of increased debt outstanding.
|
|
•
|
A $5 million decrease in general corporate expenses.
|
|
•
|
A $2 million increase in interest income due to higher return on investments held by EIS.
|
|
•
|
A $2 million decrease in income tax expense primarily due to the following:
|
|
•
|
A $27 million decrease in income tax expense due to an increase in consolidating tax adjustments and discrete items recorded in the period.
|
|
•
|
An $18 million increase related to the enactment of the Kentucky state tax legislation, which reduced income tax expense by $18 million in the second quarter of 2018.
|
|
•
|
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 $36 million increase in interest expense as a result of increased debt outstanding.
|
|
•
|
A $28 million increase in income tax expense primarily due to the following:
|
|
•
|
An $18 million increase related to the enactment of the Kentucky state tax legislation in the second quarter of 2018.
|
|
•
|
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 $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.
|
|
•
|
A $9 million increase in interest income due to a higher return on investments held by EIS.
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
(dollars in millions)
|
||||||||||||
|
Long-term Debt, including amounts due within one year
|
$
|
25,431.8
|
|
|
54.0
|
%
|
|
$
|
23,346.7
|
|
|
52.7
|
%
|
|
Short-term Debt
|
2,277.0
|
|
|
4.8
|
|
|
1,910.0
|
|
|
4.3
|
|
||
|
Total Debt
|
27,708.8
|
|
|
58.8
|
|
|
25,256.7
|
|
|
57.0
|
|
||
|
AEP Common Equity
|
19,259.6
|
|
|
40.9
|
|
|
19,028.4
|
|
|
42.9
|
|
||
|
Noncontrolling Interests
|
163.6
|
|
|
0.3
|
|
|
31.0
|
|
|
0.1
|
|
||
|
Total Debt and Equity Capitalization
|
$
|
47,132.0
|
|
|
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
|
210.5
|
|
|
|
||
|
Total Liquidity Sources
|
4,210.5
|
|
|
|
||
|
Less:
|
AEP Commercial Paper Outstanding
|
1,585.0
|
|
|
|
|
|
|
|
|
|
|
||
|
Net Available Liquidity
|
$
|
2,625.5
|
|
|
|
|
|
|
Six Months Ended
June 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
|
1,800.8
|
|
|
2,006.8
|
|
||
|
Net Cash Flows Used for Investing Activities
|
(3,595.0
|
)
|
|
(3,238.9
|
)
|
||
|
Net Cash Flows from Financing Activities
|
1,739.7
|
|
|
1,206.8
|
|
||
|
Net Decrease in Cash, Cash Equivalents and Restricted Cash
|
(54.5
|
)
|
|
(25.3
|
)
|
||
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
389.6
|
|
|
$
|
387.3
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
|
Net Income
|
$
|
1,033.2
|
|
|
$
|
986.8
|
|
|
Non-Cash Adjustments to Net Income (a)
|
1,159.7
|
|
|
1,232.5
|
|
||
|
Mark-to-Market of Risk Management Contracts
|
(72.9
|
)
|
|
(112.9
|
)
|
||
|
Property Taxes
|
137.6
|
|
|
119.9
|
|
||
|
Deferred Fuel Over/Under-Recovery, Net
|
36.7
|
|
|
12.3
|
|
||
|
Recovery of Ohio Capacity Costs
|
29.0
|
|
|
35.8
|
|
||
|
Refund of Global Settlement
|
(8.2
|
)
|
|
(5.5
|
)
|
||
|
Change in Other Noncurrent Assets
|
(73.5
|
)
|
|
10.4
|
|
||
|
Change in Other Noncurrent Liabilities
|
(53.6
|
)
|
|
185.1
|
|
||
|
Change in Certain Components of Working Capital
|
(387.2
|
)
|
|
(457.6
|
)
|
||
|
Net Cash Flows from Operating Activities
|
$
|
1,800.8
|
|
|
$
|
2,006.8
|
|
|
(a)
|
Non-Cash Adjustments to Net Income includes Depreciation and Amortization, Deferred Income Taxes, AFUDC and Amortization of Nuclear Fuel.
|
|
•
|
A $239 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 in 2018.
|
|
•
|
An $84 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.
|
|
•
|
A $70 million increase in cash from Change in Certain Components of Working Capital. The increase is primarily due to changes in timing of receivables, partially offset by higher employee-related payments, increased usage of fuel and material and supplies.
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
|
Construction Expenditures
|
$
|
(2,986.7
|
)
|
|
$
|
(3,223.4
|
)
|
|
Acquisitions of Nuclear Fuel
|
(33.8
|
)
|
|
(24.2
|
)
|
||
|
Acquisition of Sempra Renewables LLC, net of cash acquired
|
(581.2
|
)
|
|
—
|
|
||
|
Other
|
6.7
|
|
|
8.7
|
|
||
|
Net Cash Flows Used for Investing Activities
|
$
|
(3,595.0
|
)
|
|
$
|
(3,238.9
|
)
|
|
•
|
A $581 million increase due to the acquisition of Sempra Renewables LLC. The $581 million represents a cash payment of $583 million, net of cash acquired of $2 million. See Note 6 - Acquisitions and Impairments for additional information.
|
|
•
|
A $237 million decrease due to decreased construction expenditures, primarily driven by decreases at Transmission and Distribution Utilities of $129 million and AEP Transmission Holdco of $114 million.
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
|
Issuance of Common Stock
|
$
|
32.3
|
|
|
$
|
50.9
|
|
|
Issuance/Retirement of Debt, Net
|
2,412.4
|
|
|
1,820.0
|
|
||
|
Dividends Paid on Common Stock
|
(668.1
|
)
|
|
(614.2
|
)
|
||
|
Other
|
(36.9
|
)
|
|
(49.9
|
)
|
||
|
Net Cash Flows from Financing Activities
|
$
|
1,739.7
|
|
|
$
|
1,206.8
|
|
|
•
|
A $612 million increase in cash due to decreased retirements of long-term debt. See Note 13 - Financing Activities for additional information.
|
|
•
|
A $565 million increase in cash due to increased issuances of long-term debt. See Note 13 - Financing Activities for additional information.
|
|
•
|
A $584 million decrease in cash from short-term debt primarily due to decreased borrowings of commercial paper. See Note 13 - Financing Activities for additional information.
|
|
(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)
|
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
|
|
$
|
624.8
|
|
|
$
|
1.3
|
|
|
$
|
623.5
|
|
|
2
|
|
|
$
|
228.4
|
|
|
Noninvestment Grade
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
1
|
|
|
0.4
|
|
||||
|
No External Ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Internal Investment Grade
|
|
143.1
|
|
|
—
|
|
|
143.1
|
|
|
3
|
|
|
90.2
|
|
||||
|
Internal Noninvestment Grade
|
|
57.2
|
|
|
10.0
|
|
|
47.2
|
|
|
2
|
|
|
30.1
|
|
||||
|
Total as of June 30, 2019
|
|
$
|
825.5
|
|
|
$
|
11.3
|
|
|
$
|
814.2
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||||||||||
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
End
|
|
High
|
|
Average
|
|
Low
|
|
End
|
|
High
|
|
Average
|
|
Low
|
||||||||||||||||
|
(in millions)
|
|
(in millions)
|
||||||||||||||||||||||||||||
|
$
|
0.2
|
|
|
$
|
1.2
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
1.1
|
|
|
$
|
1.8
|
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
|
Six Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||||||||||
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
End
|
|
High
|
|
Average
|
|
Low
|
|
End
|
|
High
|
|
Average
|
|
Low
|
||||||||||||||||
|
(in millions)
|
|
(in millions)
|
||||||||||||||||||||||||||||
|
$
|
0.8
|
|
|
$
|
6.6
|
|
|
$
|
1.1
|
|
|
$
|
0.2
|
|
|
$
|
4.0
|
|
|
$
|
16.5
|
|
|
$
|
2.7
|
|
|
$
|
0.4
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
||||||||
|
Vertically Integrated Utilities
|
|
$
|
2,116.4
|
|
|
$
|
2,340.7
|
|
|
$
|
4,488.7
|
|
|
$
|
4,722.2
|
|
|
Transmission and Distribution Utilities
|
|
1,001.6
|
|
|
1,127.9
|
|
|
2,181.4
|
|
|
2,269.1
|
|
||||
|
Generation & Marketing
|
|
382.9
|
|
|
435.3
|
|
|
822.6
|
|
|
912.8
|
|
||||
|
Other Revenues
|
|
72.7
|
|
|
109.3
|
|
|
137.7
|
|
|
157.4
|
|
||||
|
TOTAL REVENUES
|
|
3,573.6
|
|
|
4,013.2
|
|
|
7,630.4
|
|
|
8,061.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel and Other Consumables Used for Electric Generation
|
|
480.9
|
|
|
566.9
|
|
|
1,031.3
|
|
|
1,068.7
|
|
||||
|
Purchased Electricity for Resale
|
|
660.7
|
|
|
776.7
|
|
|
1,522.5
|
|
|
1,767.0
|
|
||||
|
Other Operation
|
|
607.4
|
|
|
780.3
|
|
|
1,273.4
|
|
|
1,506.7
|
|
||||
|
Maintenance
|
|
348.7
|
|
|
295.9
|
|
|
623.2
|
|
|
594.4
|
|
||||
|
Depreciation and Amortization
|
|
622.6
|
|
|
553.2
|
|
|
1,228.4
|
|
|
1,092.9
|
|
||||
|
Taxes Other Than Income Taxes
|
|
302.3
|
|
|
283.2
|
|
|
612.2
|
|
|
568.8
|
|
||||
|
TOTAL EXPENSES
|
|
3,022.6
|
|
|
3,256.2
|
|
|
6,291.0
|
|
|
6,598.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
551.0
|
|
|
757.0
|
|
|
1,339.4
|
|
|
1,463.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Income
|
|
6.6
|
|
|
6.7
|
|
|
15.2
|
|
|
12.2
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
50.4
|
|
|
30.8
|
|
|
79.3
|
|
|
61.5
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
30.0
|
|
|
31.4
|
|
|
60.0
|
|
|
63.4
|
|
||||
|
Interest Expense
|
|
(250.7
|
)
|
|
(242.3
|
)
|
|
(506.5
|
)
|
|
(476.3
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY EARNINGS
|
|
387.3
|
|
|
583.6
|
|
|
987.4
|
|
|
1,123.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense (Benefit)
|
|
(54.4
|
)
|
|
72.2
|
|
|
(9.9
|
)
|
|
174.2
|
|
||||
|
Equity Earnings of Unconsolidated Subsidiaries
|
|
17.4
|
|
|
18.7
|
|
|
35.9
|
|
|
37.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
459.1
|
|
|
530.1
|
|
|
1,033.2
|
|
|
986.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income (Loss) Attributable to Noncontrolling Interests
|
|
(2.2
|
)
|
|
1.7
|
|
|
(0.9
|
)
|
|
4.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
461.3
|
|
|
$
|
528.4
|
|
|
$
|
1,034.1
|
|
|
$
|
982.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
|
493,584,347
|
|
|
492,688,342
|
|
|
493,447,477
|
|
|
492,479,035
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
0.93
|
|
|
$
|
1.07
|
|
|
$
|
2.10
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
|
495,382,966
|
|
|
493,505,085
|
|
|
494,934,320
|
|
|
493,317,355
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
0.93
|
|
|
$
|
1.07
|
|
|
$
|
2.09
|
|
|
$
|
1.99
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
459.1
|
|
|
$
|
530.1
|
|
|
$
|
1,033.2
|
|
|
$
|
986.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash Flow Hedges, Net of Tax of $(20.9) and $0.5 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(28.6) and $1.2 for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(78.6
|
)
|
|
1.8
|
|
|
(107.5
|
)
|
|
4.5
|
|
||||
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $(0.3) and $(0.3) for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(0.7) and $(0.7) for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(1.4
|
)
|
|
(1.2
|
)
|
|
(2.8
|
)
|
|
(2.6
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
|
(80.0
|
)
|
|
0.6
|
|
|
(110.3
|
)
|
|
1.9
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME
|
|
379.1
|
|
|
530.7
|
|
|
922.9
|
|
|
988.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Comprehensive Income (Loss) Attributable to Noncontrolling Interests
|
|
(2.2
|
)
|
|
1.7
|
|
|
(0.9
|
)
|
|
4.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
381.3
|
|
|
$
|
529.0
|
|
|
$
|
923.8
|
|
|
$
|
984.7
|
|
|
(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.
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
|
|
||
|
Cash and Cash Equivalents
|
|
$
|
210.5
|
|
|
$
|
234.1
|
|
|
Restricted Cash
(June 30, 2019 and December 31, 2018 Amounts Include $179.1 and $210, Respectively, Related to Transition Funding, Ohio Phase-in-Recovery Funding and Appalachian Consumer Rate Relief Funding) |
|
179.1
|
|
|
210.0
|
|
||
|
Other Temporary Investments
(June 30, 2019 and December 31, 2018 Amounts Include $168.9 and $152.7, Respectively, Related to EIS and Transource Energy) |
|
175.7
|
|
|
159.1
|
|
||
|
Accounts Receivable:
|
|
|
|
|
|
|
||
|
Customers
|
|
688.9
|
|
|
699.0
|
|
||
|
Accrued Unbilled Revenues
|
|
164.1
|
|
|
209.3
|
|
||
|
Pledged Accounts Receivable – AEP Credit
|
|
940.3
|
|
|
999.8
|
|
||
|
Miscellaneous
|
|
32.3
|
|
|
55.2
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(44.4
|
)
|
|
(36.8
|
)
|
||
|
Total Accounts Receivable
|
|
1,781.2
|
|
|
1,926.5
|
|
||
|
Fuel
|
|
441.7
|
|
|
341.5
|
|
||
|
Materials and Supplies
|
|
592.7
|
|
|
579.6
|
|
||
|
Risk Management Assets
|
|
249.6
|
|
|
162.8
|
|
||
|
Regulatory Asset for Under-Recovered Fuel Costs
|
|
109.9
|
|
|
150.1
|
|
||
|
Margin Deposits
|
|
87.0
|
|
|
141.4
|
|
||
|
Prepayments and Other Current Assets
|
|
233.9
|
|
|
208.8
|
|
||
|
TOTAL CURRENT ASSETS
|
|
4,061.3
|
|
|
4,113.9
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
||
|
Electric:
|
|
|
|
|
|
|
||
|
Generation
|
|
22,098.3
|
|
|
21,699.9
|
|
||
|
Transmission
|
|
22,455.3
|
|
|
21,531.0
|
|
||
|
Distribution
|
|
21,691.7
|
|
|
21,195.4
|
|
||
|
Other Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel)
|
|
4,452.2
|
|
|
4,265.0
|
|
||
|
Construction Work in Progress
|
|
4,944.5
|
|
|
4,393.9
|
|
||
|
Total Property, Plant and Equipment
|
|
75,642.0
|
|
|
73,085.2
|
|
||
|
Accumulated Depreciation and Amortization
|
|
18,439.1
|
|
|
17,986.1
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
57,202.9
|
|
|
55,099.1
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
||
|
Regulatory Assets
|
|
3,350.1
|
|
|
3,310.4
|
|
||
|
Securitized Assets
|
|
785.3
|
|
|
920.6
|
|
||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
2,776.4
|
|
|
2,474.9
|
|
||
|
Goodwill
|
|
52.5
|
|
|
52.5
|
|
||
|
Long-term Risk Management Assets
|
|
313.5
|
|
|
254.0
|
|
||
|
Operating Lease Assets
|
|
1,016.5
|
|
|
—
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
2,991.5
|
|
|
2,577.4
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
11,285.8
|
|
|
9,589.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
72,550.0
|
|
|
$
|
68,802.8
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||||
|
CURRENT LIABILITIES
|
|
|
|
|
|||||||||
|
Accounts Payable
|
|
|
|
|
|
|
$
|
1,689.0
|
|
|
$
|
1,874.3
|
|
|
Short-term Debt:
|
|
|
|
|
|
|
|
|
|
||||
|
Securitized Debt for Receivables – AEP Credit
|
|
|
|
|
|
|
692.0
|
|
|
750.0
|
|
||
|
Other Short-term Debt
|
|
|
|
|
|
|
1,585.0
|
|
|
1,160.0
|
|
||
|
Total Short-term Debt
|
|
|
|
|
|
|
2,277.0
|
|
|
1,910.0
|
|
||
|
Long-term Debt Due Within One Year
(June 30, 2019 and December 31, 2018 Amounts Include $554.4 and $406.5, Respectively, Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy and Sabine) |
|
|
1,257.4
|
|
|
1,698.5
|
|
||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
141.4
|
|
|
55.0
|
|
||
|
Customer Deposits
|
|
|
|
|
|
|
382.1
|
|
|
412.2
|
|
||
|
Accrued Taxes
|
|
|
|
|
|
|
1,046.2
|
|
|
1,218.0
|
|
||
|
Accrued Interest
|
|
|
|
|
|
|
241.2
|
|
|
231.7
|
|
||
|
Obligations Under Operating Leases
|
|
|
|
|
|
|
229.2
|
|
|
—
|
|
||
|
Regulatory Liability for Over-Recovered Fuel Costs
|
|
|
|
|
55.1
|
|
|
58.6
|
|
||||
|
Other Current Liabilities
|
|
|
|
|
|
|
1,038.5
|
|
|
1,190.5
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
|
|
|
|
|
8,357.1
|
|
|
8,648.8
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
|||||||||
|
Long-term Debt
(June 30, 2019 and December 31, 2018 Amounts Include $819.9 and $1,109.2, Respectively, Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy, and Sabine) |
|
|
24,174.4
|
|
|
21,648.2
|
|
||||||
|
Long-term Risk Management Liabilities
|
|
|
|
|
|
|
348.5
|
|
|
263.4
|
|
||
|
Deferred Income Taxes
|
|
|
|
|
|
|
7,294.0
|
|
|
7,086.5
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
8,556.6
|
|
|
8,540.3
|
|
||||||
|
Asset Retirement Obligations
|
|
|
|
|
|
|
2,331.3
|
|
|
2,287.7
|
|
||
|
Employee Benefits and Pension Obligations
|
|
|
|
|
|
|
378.8
|
|
|
377.1
|
|
||
|
Obligations Under Operating Leases
|
|
|
|
|
|
|
797.2
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
|
763.1
|
|
|
782.6
|
|
||||||
|
TOTAL NONCURRENT LIABILITIES
|
|
|
|
|
|
|
44,643.9
|
|
|
40,985.8
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
|
|
|
|
|
53,001.0
|
|
|
49,634.6
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
MEZZANINE EQUITY
|
|
|
|
|
|||||||||
|
Redeemable Noncontrolling Interest
|
|
|
|
|
|
|
67.6
|
|
|
69.4
|
|
||
|
Contingently Redeemable Performance Share Awards
|
|
|
|
|
|
|
58.2
|
|
|
39.4
|
|
||
|
TOTAL MEZZANINE EQUITY
|
|
|
|
|
|
|
125.8
|
|
|
108.8
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
EQUITY
|
|
|
|
|
|||||||||
|
Common Stock – Par Value – $6.50 Per Share:
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
2019
|
|
2018
|
|
|
|
|
|
||||
|
Shares Authorized
|
|
600,000,000
|
|
600,000,000
|
|
|
|
|
|
||||
|
Shares Issued
|
|
513,962,056
|
|
513,450,036
|
|
|
|
|
|
||||
|
(20,204,160 Shares were Held in Treasury as of June 30, 2019 and December 31, 2018, Respectively)
|
|
|
3,340.8
|
|
|
3,337.4
|
|
||||||
|
Paid-in Capital
|
|
|
|
|
|
|
6,455.3
|
|
|
6,486.1
|
|
||
|
Retained Earnings
|
|
|
|
|
|
|
9,694.2
|
|
|
9,325.3
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
(230.7
|
)
|
|
(120.4
|
)
|
||||||
|
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY
|
|
|
19,259.6
|
|
|
19,028.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Noncontrolling Interests
|
|
|
|
|
|
|
163.6
|
|
|
31.0
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
TOTAL EQUITY
|
|
|
|
|
|
|
19,423.2
|
|
|
19,059.4
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL EQUITY
|
|
$
|
72,550.0
|
|
|
$
|
68,802.8
|
|
|||||
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
1,033.2
|
|
|
$
|
986.8
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
|
Depreciation and Amortization
|
|
1,228.4
|
|
|
1,092.9
|
|
||
|
Deferred Income Taxes
|
|
(35.5
|
)
|
|
149.7
|
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(79.3
|
)
|
|
(61.5
|
)
|
||
|
Mark-to-Market of Risk Management Contracts
|
|
(72.9
|
)
|
|
(112.9
|
)
|
||
|
Amortization of Nuclear Fuel
|
|
46.1
|
|
|
51.4
|
|
||
|
Property Taxes
|
|
137.6
|
|
|
119.9
|
|
||
|
Deferred Fuel Over/Under-Recovery, Net
|
|
36.7
|
|
|
12.3
|
|
||
|
Recovery of Ohio Capacity Costs
|
|
29.0
|
|
|
35.8
|
|
||
|
Refund of Global Settlement
|
|
(8.2
|
)
|
|
(5.5
|
)
|
||
|
Change in Other Noncurrent Assets
|
|
(73.5
|
)
|
|
10.4
|
|
||
|
Change in Other Noncurrent Liabilities
|
|
(53.6
|
)
|
|
185.1
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
||||
|
Accounts Receivable, Net
|
|
165.5
|
|
|
(209.9
|
)
|
||
|
Fuel, Materials and Supplies
|
|
(114.6
|
)
|
|
31.2
|
|
||
|
Accounts Payable
|
|
(72.4
|
)
|
|
(53.6
|
)
|
||
|
Accrued Taxes, Net
|
|
(170.1
|
)
|
|
(127.8
|
)
|
||
|
Other Current Assets
|
|
27.4
|
|
|
14.8
|
|
||
|
Other Current Liabilities
|
|
(223.0
|
)
|
|
(112.3
|
)
|
||
|
Net Cash Flows from Operating Activities
|
|
1,800.8
|
|
|
2,006.8
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
||||
|
Construction Expenditures
|
|
(2,986.7
|
)
|
|
(3,223.4
|
)
|
||
|
Purchases of Investment Securities
|
|
(235.5
|
)
|
|
(1,069.2
|
)
|
||
|
Sales of Investment Securities
|
|
199.5
|
|
|
1,037.8
|
|
||
|
Acquisitions of Nuclear Fuel
|
|
(33.8
|
)
|
|
(24.2
|
)
|
||
|
Acquisition of Sempra Renewables LLC, net of cash acquired
|
|
(581.2
|
)
|
|
—
|
|
||
|
Other Investing Activities
|
|
42.7
|
|
|
40.1
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(3,595.0
|
)
|
|
(3,238.9
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
||||
|
Issuance of Common Stock
|
|
32.3
|
|
|
50.9
|
|
||
|
Issuance of Long-term Debt
|
|
2,773.7
|
|
|
2,209.2
|
|
||
|
Commercial Paper and Credit Facility Borrowings
|
|
—
|
|
|
205.6
|
|
||
|
Change in Short-term Debt, Net
|
|
367.0
|
|
|
952.0
|
|
||
|
Retirement of Long-term Debt
|
|
(728.3
|
)
|
|
(1,339.8
|
)
|
||
|
Make Whole Premium on Extinguishment of Long-term Debt
|
|
(3.0
|
)
|
|
—
|
|
||
|
Commercial Paper and Credit Facility Repayments
|
|
—
|
|
|
(207.0
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(29.6
|
)
|
|
(33.5
|
)
|
||
|
Dividends Paid on Common Stock
|
|
(668.1
|
)
|
|
(614.2
|
)
|
||
|
Other Financing Activities
|
|
(4.3
|
)
|
|
(16.4
|
)
|
||
|
Net Cash Flows from Financing Activities
|
|
1,739.7
|
|
|
1,206.8
|
|
||
|
|
|
|
|
|
||||
|
Net Decrease in Cash, Cash Equivalents and Restricted Cash
|
|
(54.5
|
)
|
|
(25.3
|
)
|
||
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
444.1
|
|
|
412.6
|
|
||
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$
|
389.6
|
|
|
$
|
387.3
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
||||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
490.2
|
|
|
$
|
455.4
|
|
|
Net Cash Paid for Income Taxes
|
|
19.7
|
|
|
33.8
|
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
44.4
|
|
|
32.8
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
904.8
|
|
|
940.0
|
|
||
|
Acquisition of Nuclear Fuel Included in Current Liabilities as of June 30,
|
|
50.5
|
|
|
0.6
|
|
||
|
Noncash Contribution of Assets by Noncontrolling Interest
|
|
—
|
|
|
84.0
|
|
||
|
Expected Reimbursement for Spent Nuclear Fuel Dry Cask Storage
|
|
—
|
|
|
0.7
|
|
||
|
Noncontrolling Interest assumed with Sempra Renewable LLC Business Acquisition
|
|
134.8
|
|
|
—
|
|
||
|
Liabilities assumed with Sempra Renewable LLC Business Acquisition
|
|
18.6
|
|
|
—
|
|
||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
||
|
Residential
|
3,008
|
|
|
3,122
|
|
|
5,432
|
|
|
5,786
|
|
|
Commercial
|
2,754
|
|
|
2,776
|
|
|
4,845
|
|
|
4,929
|
|
|
Industrial
|
2,240
|
|
|
2,388
|
|
|
4,388
|
|
|
4,489
|
|
|
Miscellaneous
|
170
|
|
|
168
|
|
|
315
|
|
|
308
|
|
|
Total Retail (a)
|
8,172
|
|
|
8,454
|
|
|
14,980
|
|
|
15,512
|
|
|
(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
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Actual – Heating (a)
|
3
|
|
|
4
|
|
|
180
|
|
|
234
|
|
|
Normal – Heating (b)
|
3
|
|
|
3
|
|
|
190
|
|
|
194
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
970
|
|
|
992
|
|
|
1,092
|
|
|
1,188
|
|
|
Normal – Cooling (b)
|
934
|
|
|
927
|
|
|
1,057
|
|
|
1,046
|
|
|
Reconciliation of Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
||||
|
Second Quarter of 2018
|
|
$
|
46.5
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
||
|
Retail Margins
|
|
(0.8
|
)
|
|
|
Off-system Sales
|
|
21.1
|
|
|
|
Transmission Revenues
|
|
26.4
|
|
|
|
Other Revenues
|
|
0.3
|
|
|
|
Total Change in Gross Margin
|
|
47.0
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(60.0
|
)
|
|
|
Depreciation and Amortization
|
|
(34.1
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(0.4
|
)
|
|
|
Other Income
|
|
(0.8
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.2
|
)
|
|
|
Interest Expense
|
|
17.1
|
|
|
|
Total Change in Expenses and Other
|
|
(78.4
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
65.5
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
80.6
|
|
|
•
|
Retail Margins decreased $1 million primarily due to the following:
|
|
•
|
A $4 million decrease in revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
A $4 million decrease in weather-related usage primarily due to a 2% decrease in cooling degree days.
|
|
•
|
A $7 million increase in weather-normalized margins primarily in the residential and commercial classes.
|
|
•
|
Margins from Off-system Sales increased $21 million due to higher affiliated PPA revenues, which were offset by corresponding increases in Other Operation and Maintenance expenses and Depreciation and Amortization expenses below.
|
|
•
|
Transmission Revenues increased $26 million primarily due to the recovery of increased transmission investment in ERCOT.
|
|
•
|
Other Operation and Maintenance expenses increased $60 million primarily 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 by a corresponding decrease in Income Tax Expense (Benefit) below.
|
|
•
|
Depreciation and Amortization expenses increased $34 million primarily due to the following:
|
|
•
|
A $16 million increase in depreciation expense due to a revision in the useful life of the Oklaunion Power Station. This increase was offset by an increase in Margins from Off-system Sales above.
|
|
•
|
A $14 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
|
•
|
Interest Expense decreased $17 million primarily 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.
|
|
•
|
Income Tax Expense (Benefit) decreased $66 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 in Other Operation and Maintenance expenses above.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
||||
|
Six Months Ended June 30, 2018
|
|
$
|
93.3
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
||
|
Retail Margins
|
|
(12.6
|
)
|
|
|
Off-system Sales
|
|
42.6
|
|
|
|
Transmission Revenues
|
|
38.4
|
|
|
|
Other Revenues
|
|
(2.8
|
)
|
|
|
Total Change in Gross Margin
|
|
65.6
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(56.6
|
)
|
|
|
Depreciation and Amortization
|
|
(63.0
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(4.5
|
)
|
|
|
Other Income
|
|
(4.6
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.5
|
)
|
|
|
Interest Expense
|
|
14.7
|
|
|
|
Total Change in Expenses and Other
|
|
(114.5
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
70.6
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
115.0
|
|
|
•
|
Retail Margins decreased $13 million primarily due to the following:
|
|
•
|
A $13 million decrease in weather-related usage primarily due to a 23% decrease in heating degree days and an 8% decrease in cooling degree days.
|
|
•
|
An $8 million decrease in revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
An $8 million increase in weather-normalized margins primarily in the residential and commercial classes.
|
|
•
|
Margins from Off-system Sales increased $43 million due to higher affiliated PPA revenues, which were offset by corresponding increases in Other Operation and Maintenance expenses and Depreciation and Amortization expenses below.
|
|
•
|
Transmission Revenues increased $38 million primarily due to recovery of increased transmission investment in ERCOT.
|
|
•
|
Other Revenues decreased $3 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 increased $57 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 by a corresponding decrease in Income Tax Expense (Benefit) below.
|
|
•
|
A $5 million increase due to employee-related expenses.
|
|
•
|
A $7 million decrease in distribution expenses.
|
|
•
|
A $6 million decrease in ERCOT transmission expenses. This decrease was partially offset by a decrease in Retail Margins above.
|
|
•
|
Depreciation and Amortization expenses increased $63 million primarily due to the following:
|
|
•
|
A $32 million increase in depreciation expense due to a revision in the useful life of the Oklaunion Power Station. This increase was offset by an increase in Margins from Off-system Sales above.
|
|
•
|
A $24 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.
|
|
•
|
Other Income decreased $5 million primarily due to a decrease in the equity component of AFUDC as a result of higher short-term debt balances, partially offset by increased transmission projects.
|
|
•
|
Interest Expense decreased $15 million primarily 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.
|
|
•
|
Income Tax Expense (Benefit) decreased $71 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 in Other Operation and Maintenance expenses above.
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
||||||||
|
Electric Transmission and Distribution
|
|
$
|
395.1
|
|
|
$
|
370.1
|
|
|
$
|
744.9
|
|
|
$
|
722.5
|
|
|
Sales to AEP Affiliates
|
|
42.2
|
|
|
17.6
|
|
|
82.4
|
|
|
35.8
|
|
||||
|
Other Revenues
|
|
0.7
|
|
|
0.6
|
|
|
1.4
|
|
|
1.6
|
|
||||
|
TOTAL REVENUES
|
|
438.0
|
|
|
388.3
|
|
|
828.7
|
|
|
759.9
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel and Other Consumables Used for Electric Generation
|
|
8.5
|
|
|
5.8
|
|
|
17.9
|
|
|
14.7
|
|
||||
|
Other Operation
|
|
111.2
|
|
|
118.0
|
|
|
221.0
|
|
|
235.0
|
|
||||
|
Maintenance
|
|
89.9
|
|
|
23.1
|
|
|
115.2
|
|
|
44.6
|
|
||||
|
Depreciation and Amortization
|
|
155.7
|
|
|
121.6
|
|
|
294.6
|
|
|
231.6
|
|
||||
|
Taxes Other Than Income Taxes
|
|
34.0
|
|
|
33.6
|
|
|
70.5
|
|
|
66.0
|
|
||||
|
TOTAL EXPENSES
|
|
399.3
|
|
|
302.1
|
|
|
719.2
|
|
|
591.9
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
38.7
|
|
|
86.2
|
|
|
109.5
|
|
|
168.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Income
|
|
2.1
|
|
|
2.9
|
|
|
4.3
|
|
|
8.9
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
2.8
|
|
|
3.0
|
|
|
5.6
|
|
|
6.1
|
|
||||
|
Interest Expense
|
|
(19.5
|
)
|
|
(36.6
|
)
|
|
(56.9
|
)
|
|
(71.6
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
24.1
|
|
|
55.5
|
|
|
62.5
|
|
|
111.4
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense (Benefit)
|
|
(56.5
|
)
|
|
9.0
|
|
|
(52.5
|
)
|
|
18.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
$
|
80.6
|
|
|
$
|
46.5
|
|
|
$
|
115.0
|
|
|
$
|
93.3
|
|
|
The common stock of AEP Texas is wholly-owned by Parent.
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
80.6
|
|
|
$
|
46.5
|
|
|
$
|
115.0
|
|
|
$
|
93.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE INCOME, NET OF TAXES
|
|
|
|
|
|
|
|
|
||||||||
|
Cash Flow Hedges, Net of Tax of $0 and $0 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $0.1 and $0.1 for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
0.2
|
|
|
0.3
|
|
|
0.5
|
|
|
0.5
|
|
||||
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $0 and $0 for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL OTHER COMPREHENSIVE INCOME
|
|
0.3
|
|
|
0.3
|
|
|
0.6
|
|
|
0.6
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
80.9
|
|
|
$
|
46.8
|
|
|
$
|
115.6
|
|
|
$
|
93.9
|
|
|
|
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017
|
|
$
|
1,057.9
|
|
|
$
|
1,124.6
|
|
|
$
|
(12.6
|
)
|
|
$
|
2,169.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Capital Contribution from Parent
|
|
100.0
|
|
|
|
|
|
|
100.0
|
|
||||||
|
ASU 2018-02 Adoption
|
|
|
|
1.8
|
|
|
(2.7
|
)
|
|
(0.9
|
)
|
|||||
|
Net Income
|
|
|
|
46.8
|
|
|
|
|
46.8
|
|
||||||
|
Other Comprehensive Income
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018
|
|
1,157.9
|
|
|
1,173.2
|
|
|
(15.0
|
)
|
|
2,316.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income
|
|
|
|
|
46.5
|
|
|
|
|
|
46.5
|
|
||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018
|
|
$
|
1,157.9
|
|
|
$
|
1,219.7
|
|
|
$
|
(14.7
|
)
|
|
$
|
2,362.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018
|
|
$
|
1,257.9
|
|
|
$
|
1,337.7
|
|
|
$
|
(15.1
|
)
|
|
$
|
2,580.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Capital Contribution from Parent
|
|
200.0
|
|
|
|
|
|
|
200.0
|
|
||||||
|
Net Income
|
|
|
|
34.4
|
|
|
|
|
34.4
|
|
||||||
|
Other Comprehensive Income
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019
|
|
1,457.9
|
|
|
1,372.1
|
|
|
(14.8
|
)
|
|
2,815.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income
|
|
|
|
|
80.6
|
|
|
|
|
80.6
|
|
|||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019
|
|
$
|
1,457.9
|
|
|
$
|
1,452.7
|
|
|
$
|
(14.5
|
)
|
|
$
|
2,896.1
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
|
$
|
0.1
|
|
|
$
|
3.1
|
|
|
Restricted Cash for Securitized Transition Funding
|
|
125.4
|
|
|
156.7
|
|
||
|
Advances to Affiliates
|
|
7.7
|
|
|
8.0
|
|
||
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
142.7
|
|
|
110.9
|
|
||
|
Affiliated Companies
|
|
20.4
|
|
|
15.0
|
|
||
|
Accrued Unbilled Revenues
|
|
81.4
|
|
|
70.4
|
|
||
|
Miscellaneous
|
|
0.2
|
|
|
1.9
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(1.6
|
)
|
|
(1.3
|
)
|
||
|
Total Accounts Receivable
|
|
243.1
|
|
|
196.9
|
|
||
|
Fuel
|
|
6.4
|
|
|
8.8
|
|
||
|
Materials and Supplies
|
|
54.4
|
|
|
52.8
|
|
||
|
Accrued Tax Benefits
|
|
45.6
|
|
|
44.9
|
|
||
|
Prepayments and Other Current Assets
|
|
3.4
|
|
|
5.3
|
|
||
|
TOTAL CURRENT ASSETS
|
|
486.1
|
|
|
476.5
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
|
Electric:
|
|
|
|
|
||||
|
Generation
|
|
351.8
|
|
|
352.1
|
|
||
|
Transmission
|
|
3,946.9
|
|
|
3,683.6
|
|
||
|
Distribution
|
|
4,064.9
|
|
|
4,043.2
|
|
||
|
Other Property, Plant and Equipment
|
|
766.7
|
|
|
727.9
|
|
||
|
Construction Work in Progress
|
|
963.0
|
|
|
836.2
|
|
||
|
Total Property, Plant and Equipment
|
|
10,093.3
|
|
|
9,643.0
|
|
||
|
Accumulated Depreciation and Amortization
|
|
1,712.6
|
|
|
1,651.2
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
8,380.7
|
|
|
7,991.8
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
|
483.5
|
|
|
430.0
|
|
||
|
Securitized Transition Assets
(June 30, 2019 and December 31, 2018 Amounts Include $528.9 and $636.8 Respectively, Related to Transition Funding) |
|
536.9
|
|
|
649.1
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
181.5
|
|
|
56.3
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
1,201.9
|
|
|
1,135.4
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
10,068.7
|
|
|
$
|
9,603.7
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
239.0
|
|
|
$
|
216.0
|
|
|
Accounts Payable:
|
|
|
|
|
||||
|
General
|
|
238.4
|
|
|
276.5
|
|
||
|
Affiliated Companies
|
|
22.4
|
|
|
30.3
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
(June 30, 2019 and December 31, 2018 Amounts Include $259.2 and $251.1, Respectively, Related to Transition Funding) |
|
309.9
|
|
|
501.1
|
|
||
|
Risk Management Liabilities
|
|
0.2
|
|
|
0.2
|
|
||
|
Accrued Taxes
|
|
102.6
|
|
|
75.5
|
|
||
|
Accrued Interest
(June 30, 2019 and December 31, 2018 Amounts Include $8.5 and $11.3 Respectively, Related to Transition Funding) |
|
36.3
|
|
|
37.3
|
|
||
|
Oklaunion Purchase Power Agreement
|
|
27.2
|
|
|
24.3
|
|
||
|
Obligations Under Operating Leases
|
|
11.6
|
|
|
—
|
|
||
|
Other Current Liabilities
|
|
85.1
|
|
|
98.3
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
1,072.7
|
|
|
1,259.5
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
(June 30, 2019 and December 31, 2018 Amounts Include $400.8 and $540.1 Respectively, Related to Transition Funding) |
|
3,684.7
|
|
|
3,380.2
|
|
||
|
Deferred Income Taxes
|
|
927.9
|
|
|
913.1
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,299.6
|
|
|
1,344.3
|
|
||
|
Oklaunion Purchase Power Agreement
|
|
7.7
|
|
|
22.1
|
|
||
|
Obligations Under Operating Leases
|
|
69.9
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
110.1
|
|
|
104.0
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
6,099.9
|
|
|
5,763.7
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
7,172.6
|
|
|
7,023.2
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
COMMON SHAREHOLDER’S EQUITY
|
|
|
|
|
||||
|
Paid-in Capital
|
|
1,457.9
|
|
|
1,257.9
|
|
||
|
Retained Earnings
|
|
1,452.7
|
|
|
1,337.7
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
(14.5
|
)
|
|
(15.1
|
)
|
||
|
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,896.1
|
|
|
2,580.5
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
10,068.7
|
|
|
$
|
9,603.7
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
115.0
|
|
|
$
|
93.3
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
|
Depreciation and Amortization
|
|
294.6
|
|
|
231.6
|
|
||
|
Deferred Income Taxes
|
|
(59.9
|
)
|
|
24.9
|
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(3.2
|
)
|
|
(9.4
|
)
|
||
|
Property Taxes
|
|
(45.0
|
)
|
|
(38.4
|
)
|
||
|
Change in Other Noncurrent Assets
|
|
24.4
|
|
|
(36.1
|
)
|
||
|
Change in Other Noncurrent Liabilities
|
|
5.6
|
|
|
21.6
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|||
|
Accounts Receivable, Net
|
|
(46.2
|
)
|
|
(67.1
|
)
|
||
|
Fuel, Materials and Supplies
|
|
0.8
|
|
|
0.5
|
|
||
|
Accounts Payable
|
|
1.8
|
|
|
(29.6
|
)
|
||
|
Accrued Taxes, Net
|
|
26.4
|
|
|
37.5
|
|
||
|
Other Current Assets
|
|
2.0
|
|
|
1.6
|
|
||
|
Other Current Liabilities
|
|
(21.8
|
)
|
|
(5.5
|
)
|
||
|
Net Cash Flows from Operating Activities
|
|
294.5
|
|
|
224.9
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
|
Construction Expenditures
|
|
(671.6
|
)
|
|
(792.8
|
)
|
||
|
Change in Advances to Affiliates, Net
|
|
0.3
|
|
|
84.8
|
|
||
|
Other Investing Activities
|
|
7.6
|
|
|
19.2
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(663.7
|
)
|
|
(688.8
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
|
Capital Contribution from Parent
|
|
200.0
|
|
|
100.0
|
|
||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
295.6
|
|
|
494.5
|
|
||
|
Change in Advances from Affiliates, Net
|
|
23.0
|
|
|
—
|
|
||
|
Retirement of Long-term Debt – Nonaffiliated
|
|
(181.8
|
)
|
|
(154.1
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(2.5
|
)
|
|
(2.3
|
)
|
||
|
Other Financing Activities
|
|
0.6
|
|
|
0.6
|
|
||
|
Net Cash Flows from Financing Activities
|
|
334.9
|
|
|
438.7
|
|
||
|
|
|
|
|
|
||||
|
Net Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Transition Funding
|
|
(34.3
|
)
|
|
(25.2
|
)
|
||
|
Cash, Cash Equivalents and Restricted Cash for Securitized Transition Funding at Beginning of Period
|
|
159.8
|
|
|
157.2
|
|
||
|
Cash, Cash Equivalents and Restricted Cash for Securitized Transition Funding at End of Period
|
|
$
|
125.5
|
|
|
$
|
132.0
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
73.4
|
|
|
$
|
69.3
|
|
|
Net Cash Paid (Received) for Income Taxes
|
|
14.4
|
|
|
(22.4
|
)
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
4.4
|
|
|
6.3
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
192.9
|
|
|
186.8
|
|
||
|
|
|
As of June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in millions)
|
||||||
|
Plant In Service
|
|
$
|
7,122.5
|
|
|
$
|
5,840.5
|
|
|
Construction Work in Progress
|
|
1,785.0
|
|
|
1,585.9
|
|
||
|
Accumulated Depreciation and Amortization
|
|
336.6
|
|
|
210.5
|
|
||
|
Total Transmission Property, Net
|
|
$
|
8,570.9
|
|
|
$
|
7,215.9
|
|
|
Reconciliation of Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
82.0
|
|
|
|
|
|
||
|
Changes in Transmission Revenues:
|
|
|
||
|
Transmission Revenues
|
|
66.8
|
|
|
|
Total Change in Transmission Revenues
|
|
66.8
|
|
|
|
|
|
|
||
|
Changes in Expenses and Other:
|
|
|
||
|
Other Operation and Maintenance
|
|
(0.5
|
)
|
|
|
Depreciation and Amortization
|
|
(10.5
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(5.3
|
)
|
|
|
Interest Income
|
|
0.2
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
13.0
|
|
|
|
Interest Expense
|
|
(0.8
|
)
|
|
|
Total Change in Expenses and Other
|
|
(3.9
|
)
|
|
|
|
|
|
||
|
Income Tax Expense
|
|
(8.9
|
)
|
|
|
|
|
|
||
|
Second Quarter of 2019
|
|
$
|
136.0
|
|
|
•
|
Transmission Revenues increased $67 million primarily due to continued investment in transmission assets.
|
|
•
|
Depreciation and Amortization expenses increased $11 million primarily due to a higher depreciable base.
|
|
•
|
Taxes Other Than Income Taxes increased $5 million primarily due to higher property taxes as a result of increased transmission investment.
|
|
•
|
Allowance for Equity Funds Used During Construction increased $13 million primarily due to the following:
|
|
•
|
A $12 million increase due to the FERC’s approval of a settlement agreement.
|
|
•
|
A $5 million increase due to increased transmission investment resulting in a higher CWIP balance.
|
|
•
|
A $4 million decrease due to recent FERC audit findings.
|
|
•
|
Income Tax Expense increased $9 million primarily due to higher pretax book income with a partial offset due to the FERC’s approval of a settlement agreement.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
||||
|
Six Months Ended June 30, 2018
|
|
$
|
166.1
|
|
|
|
|
|
|
|
|
Changes in Transmission Revenues:
|
|
|
|
|
|
Transmission Revenues
|
|
118.6
|
|
|
|
Total Change in Transmission Revenues
|
|
118.6
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(1.5
|
)
|
|
|
Depreciation and Amortization
|
|
(20.5
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(15.6
|
)
|
|
|
Interest Income
|
|
0.5
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
9.4
|
|
|
|
Interest Expense
|
|
(2.2
|
)
|
|
|
Total Change in Expenses and Other
|
|
(29.9
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
(14.5
|
)
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
240.3
|
|
|
•
|
Transmission Revenues increased $119 million primarily due to continued investment in transmission assets.
|
|
•
|
Depreciation and Amortization expenses increased $21 million primarily due to a higher depreciable base.
|
|
•
|
Taxes Other Than Income Taxes increased $16 million primarily due to higher property taxes as a result of increased transmission investment.
|
|
•
|
Allowance for Equity Funds Used During Construction increased $9 million primarily due to the following:
|
|
•
|
A $12 million increase due to the FERC’s approval of a settlement agreement.
|
|
•
|
A $10 million increase due to increased transmission investment resulting in a higher CWIP balance.
|
|
•
|
A $13 million decrease due to recent FERC audit findings.
|
|
•
|
Income Tax Expense increased $15 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
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
||||||||
|
Transmission Revenues
|
|
$
|
57.8
|
|
|
$
|
55.4
|
|
|
$
|
108.1
|
|
|
$
|
86.3
|
|
|
Sales to AEP Affiliates
|
|
209.1
|
|
|
144.7
|
|
|
402.3
|
|
|
305.4
|
|
||||
|
Other Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
|
TOTAL REVENUES
|
|
266.9
|
|
|
200.1
|
|
|
510.4
|
|
|
391.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Operation
|
|
18.7
|
|
|
18.5
|
|
|
35.7
|
|
|
35.1
|
|
||||
|
Maintenance
|
|
2.5
|
|
|
2.2
|
|
|
5.7
|
|
|
4.8
|
|
||||
|
Depreciation and Amortization
|
|
42.8
|
|
|
32.3
|
|
|
83.1
|
|
|
62.6
|
|
||||
|
Taxes Other Than Income Taxes
|
|
41.9
|
|
|
36.6
|
|
|
83.3
|
|
|
67.7
|
|
||||
|
TOTAL EXPENSES
|
|
105.9
|
|
|
89.6
|
|
|
207.8
|
|
|
170.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
161.0
|
|
|
110.5
|
|
|
302.6
|
|
|
221.6
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest Income
|
|
0.6
|
|
|
0.4
|
|
|
1.3
|
|
|
0.8
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
28.8
|
|
|
15.8
|
|
|
40.1
|
|
|
30.7
|
|
||||
|
Interest Expense
|
|
(21.4
|
)
|
|
(20.6
|
)
|
|
(43.1
|
)
|
|
(40.9
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE
|
|
169.0
|
|
|
106.1
|
|
|
300.9
|
|
|
212.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense
|
|
33.0
|
|
|
24.1
|
|
|
60.6
|
|
|
46.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
$
|
136.0
|
|
|
$
|
82.0
|
|
|
$
|
240.3
|
|
|
$
|
166.1
|
|
|
The 2018 amounts presented reflect the revisions made to AEPTCo’s previously issued financial statements.
|
|
|
|
|
|
Paid-in
Capital |
|
Retained
Earnings |
|
Total
|
||||||
|
TOTAL MEMBER'S EQUITY – DECEMBER 31, 2017
|
|
$
|
1,816.6
|
|
|
$
|
773.3
|
|
|
$
|
2,589.9
|
|
|
|
|
|
|
|
|
|
||||||
|
Capital Contributions from Member
|
|
65.0
|
|
|
|
|
65.0
|
|
||||
|
Net Income
|
|
|
|
|
84.1
|
|
|
84.1
|
|
|||
|
TOTAL MEMBER'S EQUITY – MARCH 31, 2018
|
|
1,881.6
|
|
|
857.4
|
|
|
2,739.0
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Capital Contributions from Member
|
|
312.0
|
|
|
|
|
312.0
|
|
||||
|
Net Income
|
|
|
|
82.0
|
|
|
82.0
|
|
||||
|
TOTAL MEMBER'S EQUITY – JUNE 30, 2018
|
|
$
|
2,193.6
|
|
|
$
|
939.4
|
|
|
$
|
3,133.0
|
|
|
|
|
|
|
|
|
|
||||||
|
TOTAL MEMBER'S EQUITY – DECEMBER 31, 2018
|
|
$
|
2,480.6
|
|
|
$
|
1,089.2
|
|
|
$
|
3,569.8
|
|
|
|
|
|
|
|
|
|
||||||
|
Net Income
|
|
|
|
104.3
|
|
|
104.3
|
|
||||
|
TOTAL MEMBER'S EQUITY – MARCH 31, 2019
|
|
2,480.6
|
|
|
1,193.5
|
|
|
3,674.1
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Net Income
|
|
|
|
|
136.0
|
|
|
136.0
|
|
|||
|
TOTAL MEMBER'S EQUITY – JUNE 30, 2019
|
|
$
|
2,480.6
|
|
|
$
|
1,329.5
|
|
|
$
|
3,810.1
|
|
|
Net Income for the three months ended June 30, 2018 reflects the revisions made to AEPTCo’s previously issued financial statements.
|
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Advances to Affiliates
|
|
$
|
51.2
|
|
|
$
|
96.9
|
|
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
27.3
|
|
|
11.8
|
|
||
|
Affiliated Companies
|
|
84.2
|
|
|
61.0
|
|
||
|
Total Accounts Receivable
|
|
111.5
|
|
|
72.8
|
|
||
|
Materials and Supplies
|
|
17.2
|
|
|
19.0
|
|
||
|
Accrued Tax Benefits
|
|
11.3
|
|
|
33.4
|
|
||
|
Prepayments and Other Current Assets
|
|
3.3
|
|
|
3.4
|
|
||
|
TOTAL CURRENT ASSETS
|
|
194.5
|
|
|
225.5
|
|
||
|
|
|
|
|
|
||||
|
TRANSMISSION PROPERTY
|
|
|
|
|
||||
|
Transmission Property
|
|
6,900.3
|
|
|
6,515.8
|
|
||
|
Other Property, Plant and Equipment
|
|
222.2
|
|
|
174.0
|
|
||
|
Construction Work in Progress
|
|
1,785.0
|
|
|
1,578.3
|
|
||
|
Total Transmission Property
|
|
8,907.5
|
|
|
8,268.1
|
|
||
|
Accumulated Depreciation and Amortization
|
|
336.6
|
|
|
271.9
|
|
||
|
TOTAL TRANSMISSION PROPERTY – NET
|
|
8,570.9
|
|
|
7,996.2
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Accounts Receivable – Affiliated Companies
|
|
7.8
|
|
|
—
|
|
||
|
Regulatory Assets
|
|
9.8
|
|
|
12.9
|
|
||
|
Deferred Property Taxes
|
|
89.6
|
|
|
157.9
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
6.6
|
|
|
1.6
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
113.8
|
|
|
172.4
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
8,879.2
|
|
|
$
|
8,394.1
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
20.5
|
|
|
$
|
45.4
|
|
|
Accounts Payable:
|
|
|
|
|
||||
|
General
|
|
270.4
|
|
|
347.2
|
|
||
|
Affiliated Companies
|
|
63.0
|
|
|
56.0
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
|
|
85.0
|
|
|
85.0
|
|
||
|
Accrued Taxes
|
|
223.7
|
|
|
288.9
|
|
||
|
Accrued Interest
|
|
16.3
|
|
|
15.9
|
|
||
|
Obligations Under Operating Leases
|
|
2.6
|
|
|
—
|
|
||
|
Other Current Liabilities
|
|
30.5
|
|
|
3.8
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
712.0
|
|
|
842.2
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
|
|
3,082.9
|
|
|
2,738.0
|
|
||
|
Deferred Income Taxes
|
|
730.5
|
|
|
704.4
|
|
||
|
Regulatory Liabilities
|
|
534.4
|
|
|
521.3
|
|
||
|
Obligations Under Operating Leases
|
|
2.8
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
6.5
|
|
|
18.4
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
4,357.1
|
|
|
3,982.1
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
5,069.1
|
|
|
4,824.3
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
MEMBER’S EQUITY
|
|
|
|
|
||||
|
Paid-in Capital
|
|
2,480.6
|
|
|
2,480.6
|
|
||
|
Retained Earnings
|
|
1,329.5
|
|
|
1,089.2
|
|
||
|
TOTAL MEMBER’S EQUITY
|
|
3,810.1
|
|
|
3,569.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
|
$
|
8,879.2
|
|
|
$
|
8,394.1
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
||||
|
Net Income
|
|
$
|
240.3
|
|
|
$
|
166.1
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
|
Depreciation and Amortization
|
|
83.1
|
|
|
62.6
|
|
||
|
Deferred Income Taxes
|
|
19.7
|
|
|
49.9
|
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(40.1
|
)
|
|
(30.7
|
)
|
||
|
Property Taxes
|
|
68.3
|
|
|
44.7
|
|
||
|
Long-term Accounts Receivable – Affiliated
|
|
(7.8
|
)
|
|
(6.2
|
)
|
||
|
Change in Other Noncurrent Assets
|
|
3.6
|
|
|
(6.7
|
)
|
||
|
Change in Other Noncurrent Liabilities
|
|
(6.4
|
)
|
|
17.8
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|||
|
Accounts Receivable
|
|
(31.7
|
)
|
|
8.5
|
|
||
|
Materials and Supplies
|
|
1.8
|
|
|
(2.4
|
)
|
||
|
Accounts Payable
|
|
6.3
|
|
|
3.4
|
|
||
|
Accrued Taxes, Net
|
|
(43.1
|
)
|
|
(29.8
|
)
|
||
|
Accrued Interest
|
|
0.4
|
|
|
(3.3
|
)
|
||
|
Other Current Assets
|
|
—
|
|
|
0.4
|
|
||
|
Other Current Liabilities
|
|
(0.2
|
)
|
|
(28.2
|
)
|
||
|
Net Cash Flows from Operating Activities
|
|
294.2
|
|
|
246.1
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
|
Construction Expenditures
|
|
(661.5
|
)
|
|
(855.4
|
)
|
||
|
Change in Advances to Affiliates, Net
|
|
45.7
|
|
|
92.7
|
|
||
|
Acquisitions of Assets
|
|
(2.6
|
)
|
|
(13.1
|
)
|
||
|
Other Investing Activities
|
|
4.8
|
|
|
1.1
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(613.6
|
)
|
|
(774.7
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|||
|
Capital Contributions from Member
|
|
—
|
|
|
377.0
|
|
||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
344.3
|
|
|
—
|
|
||
|
Change in Advances from Affiliates, Net
|
|
(24.9
|
)
|
|
151.8
|
|
||
|
Other Financing Activities
|
|
—
|
|
|
(0.2
|
)
|
||
|
Net Cash Flows from Financing Activities
|
|
319.4
|
|
|
528.6
|
|
||
|
|
|
|
|
|
||||
|
Net Change in Cash and Cash Equivalents
|
|
—
|
|
|
—
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
|
—
|
|
|
—
|
|
||
|
Cash and Cash Equivalents at End of Period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
41.0
|
|
|
$
|
43.1
|
|
|
Net Cash Paid (Received) for Income Taxes
|
|
17.4
|
|
|
(20.4
|
)
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
278.5
|
|
|
241.1
|
|
||
|
The 2018 amounts presented reflect the revisions made to AEPTCo’s previously issued financial statements.
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
2,086
|
|
|
2,388
|
|
|
5,673
|
|
|
6,233
|
|
|
Commercial
|
1,495
|
|
|
1,576
|
|
|
3,091
|
|
|
3,265
|
|
|
Industrial
|
2,357
|
|
|
2,366
|
|
|
4,693
|
|
|
4,748
|
|
|
Miscellaneous
|
205
|
|
|
205
|
|
|
424
|
|
|
429
|
|
|
Total Retail (a)
|
6,143
|
|
|
6,535
|
|
|
13,881
|
|
|
14,675
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale
|
913
|
|
|
614
|
|
|
1,729
|
|
|
1,109
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
7,056
|
|
|
7,149
|
|
|
15,610
|
|
|
15,784
|
|
|
(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
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Actual – Heating (a)
|
43
|
|
|
129
|
|
|
1,295
|
|
|
1,518
|
|
|
Normal – Heating (b)
|
92
|
|
|
91
|
|
|
1,404
|
|
|
1,408
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
459
|
|
|
537
|
|
|
459
|
|
|
545
|
|
|
Normal – Cooling (b)
|
372
|
|
|
363
|
|
|
379
|
|
|
370
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
||||
|
Second Quarter of 2018
|
|
$
|
77.4
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(19.9
|
)
|
|
|
Off-system Sales
|
|
0.3
|
|
|
|
Transmission Revenues
|
|
0.8
|
|
|
|
Other Revenues
|
|
1.7
|
|
|
|
Total Change in Gross Margin
|
|
(17.1
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(24.6
|
)
|
|
|
Depreciation and Amortization
|
|
(11.8
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(2.2
|
)
|
|
|
Interest Income
|
|
0.4
|
|
|
|
Carrying Costs Income
|
|
(0.5
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
3.1
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.2
|
)
|
|
|
Interest Expense
|
|
(3.8
|
)
|
|
|
Total Change in Expenses and Other
|
|
(39.6
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
34.8
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
55.5
|
|
|
•
|
Retail Margins decreased $20 million primarily due to the following:
|
|
•
|
A $19 million decrease in weather-related usage primarily driven by a 15% decrease in cooling degree days and a 67% decrease in heating degree days.
|
|
•
|
A $7 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
|
•
|
A $5 million decrease in weather-normalized margins occurring across all retail classes.
|
|
•
|
A $5 million increase due to a base rate increase in West Virginia implemented in March 2019.
|
|
•
|
A $4 million increase due to revenue from rate riders in West Virginia. This increase was offset in other expense items below.
|
|
•
|
Other Operation and Maintenance expenses increased $25 million primarily due to the following:
|
|
•
|
A $25 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
|
•
|
A $12 million increase due to 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 $10 million decrease in recoverable PJM transmission expenses which were partially offset within Gross Margins above.
|
|
•
|
A $3 million decrease in expense due to the extinguishment of certain regulatory asset balances in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement.
|
|
•
|
A $3 million decrease in storm-related expenses.
|
|
•
|
Depreciation and Amortization expenses increased $12 million primarily due to a higher depreciable base and an increase in West Virginia depreciation rates beginning in March 2019.
|
|
•
|
Interest Expense increased $4 million primarily due to higher long-term debt balances.
|
|
•
|
Income Tax Expense (Benefit) decreased $35 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.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
||||
|
Six Months Ended June 30, 2018
|
|
$
|
202.9
|
|
|
|
|
|
||
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(79.2
|
)
|
|
|
Off-system Sales
|
|
2.0
|
|
|
|
Transmission Revenues
|
|
13.1
|
|
|
|
Other Revenues
|
|
0.4
|
|
|
|
Total Change in Gross Margin
|
|
(63.7
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(12.8
|
)
|
|
|
Depreciation and Amortization
|
|
(15.8
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(4.3
|
)
|
|
|
Interest Income
|
|
0.9
|
|
|
|
Carrying Costs Income
|
|
(1.0
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
2.2
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.4
|
)
|
|
|
Interest Expense
|
|
(5.7
|
)
|
|
|
Total Change in Expenses and Other
|
|
(36.9
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
86.9
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
189.2
|
|
|
•
|
Retail Margins decreased $79 million primarily due to the following:
|
|
•
|
A $35 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
|
•
|
A $33 million decrease in weather-related usage primarily driven by a 16% decrease in cooling degree days and a 15% decrease in heating degree days.
|
|
•
|
A $20 million decrease in weather-normalized margins occurring across all retail classes.
|
|
•
|
A $6 million increase due to a base rate increase in West Virginia implemented in March 2019.
|
|
•
|
A $6 million increase due to revenue from rate riders in West Virginia. This increase was offset in other expense items below.
|
|
•
|
Transmission Revenue increased $13 million primarily due to 2018 provisions for refunds.
|
|
•
|
Other Operation and Maintenance expenses increased $13 million primarily due to the following:
|
|
•
|
A $33 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
|
•
|
A $13 million increase due to 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 $7 million increase in employee-related expenses.
|
|
•
|
A $12 million decrease in recoverable PJM transmission expenses which were partially offset within Gross Margins above.
|
|
•
|
A $6 million decrease in expense due to the extinguishment of certain regulatory asset balances in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement.
|
|
•
|
A $5 million decrease in estimated expense for claims related to asbestos exposure.
|
|
•
|
A $5 million decrease in storm-related expenses.
|
|
•
|
A $4 million decrease in vegetation management expenses.
|
|
•
|
A $4 million decrease in maintenance expense at various generation plants.
|
|
•
|
Depreciation and Amortization expenses increased $16 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 $4 million primarily due to an increase in West Virginia business and occupational taxes.
|
|
•
|
Interest Expense increased $6 million primarily due to higher long-term debt balances.
|
|
•
|
Income Tax Expense (Benefit) decreased $87 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
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
|
Electric Generation, Transmission and Distribution
|
|
$
|
605.9
|
|
|
$
|
618.8
|
|
|
$
|
1,344.6
|
|
|
$
|
1,386.3
|
|
|
Sales to AEP Affiliates
|
|
46.3
|
|
|
46.4
|
|
|
98.0
|
|
|
95.8
|
|
||||
|
Other Revenues
|
|
3.6
|
|
|
1.8
|
|
|
6.0
|
|
|
5.3
|
|
||||
|
TOTAL REVENUES
|
|
655.8
|
|
|
667.0
|
|
|
1,448.6
|
|
|
1,487.4
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel and Other Consumables Used for Electric Generation
|
|
161.2
|
|
|
155.3
|
|
|
344.5
|
|
|
224.3
|
|
||||
|
Purchased Electricity for Resale
|
|
64.5
|
|
|
64.5
|
|
|
175.1
|
|
|
270.4
|
|
||||
|
Other Operation
|
|
138.9
|
|
|
109.9
|
|
|
275.8
|
|
|
248.1
|
|
||||
|
Maintenance
|
|
61.3
|
|
|
65.7
|
|
|
122.8
|
|
|
137.7
|
|
||||
|
Depreciation and Amortization
|
|
117.1
|
|
|
105.3
|
|
|
229.6
|
|
|
213.8
|
|
||||
|
Taxes Other Than Income Taxes
|
|
35.9
|
|
|
33.7
|
|
|
71.8
|
|
|
67.5
|
|
||||
|
TOTAL EXPENSES
|
|
578.9
|
|
|
534.4
|
|
|
1,219.6
|
|
|
1,161.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
76.9
|
|
|
132.6
|
|
|
229.0
|
|
|
325.6
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest Income
|
|
1.0
|
|
|
0.6
|
|
|
1.8
|
|
|
0.9
|
|
||||
|
Carrying Costs Income
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
1.0
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
6.0
|
|
|
2.9
|
|
|
7.7
|
|
|
5.5
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
4.2
|
|
|
4.4
|
|
|
8.5
|
|
|
8.9
|
|
||||
|
Interest Expense
|
|
(51.6
|
)
|
|
(47.8
|
)
|
|
(100.9
|
)
|
|
(95.2
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
36.5
|
|
|
93.2
|
|
|
146.1
|
|
|
246.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense (Benefit)
|
|
(19.0
|
)
|
|
15.8
|
|
|
(43.1
|
)
|
|
43.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
$
|
55.5
|
|
|
$
|
77.4
|
|
|
$
|
189.2
|
|
|
$
|
202.9
|
|
|
The common stock of APCo is wholly-owned by Parent.
|
|
|||
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
55.5
|
|
|
$
|
77.4
|
|
|
$
|
189.2
|
|
|
$
|
202.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash Flow Hedges, Net of Tax of $0 and $0 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(0.1) and $(0.1) for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $(0.1) and $(0.2) for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(0.3) and $(0.4) for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(0.7
|
)
|
|
(0.8
|
)
|
|
(1.3
|
)
|
|
(1.6
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL OTHER COMPREHENSIVE LOSS
|
|
(0.9
|
)
|
|
(1.0
|
)
|
|
(1.7
|
)
|
|
(2.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
54.6
|
|
|
$
|
76.4
|
|
|
$
|
187.5
|
|
|
$
|
200.9
|
|
|
|
|
Common
Stock |
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017
|
|
$
|
260.4
|
|
|
$
|
1,828.7
|
|
|
$
|
1,714.1
|
|
|
$
|
1.3
|
|
|
$
|
3,804.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
|
(40.0
|
)
|
|
|
|
|
(40.0
|
)
|
|||||
|
ASU 2018-02 Adoption
|
|
|
|
|
|
0.1
|
|
|
0.3
|
|
|
0.4
|
|
|||||||
|
Net Income
|
|
|
|
|
|
|
|
125.5
|
|
|
|
|
|
125.5
|
|
|||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018
|
|
260.4
|
|
|
1,828.7
|
|
|
1,799.7
|
|
|
0.6
|
|
|
3,889.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(40.0
|
)
|
|
|
|
(40.0
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
77.4
|
|
|
|
|
77.4
|
|
||||||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018
|
|
$
|
260.4
|
|
|
$
|
1,828.7
|
|
|
$
|
1,837.1
|
|
|
$
|
(0.4
|
)
|
|
$
|
3,925.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018
|
|
$
|
260.4
|
|
|
$
|
1,828.7
|
|
|
$
|
1,922.0
|
|
|
$
|
(5.0
|
)
|
|
$
|
4,006.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(50.0
|
)
|
|
|
|
(50.0
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
133.7
|
|
|
|
|
133.7
|
|
||||||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY - MARCH 31, 2019
|
|
260.4
|
|
|
1,828.7
|
|
|
2,005.7
|
|
|
(5.8
|
)
|
|
4,089.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
|
(50.0
|
)
|
|
|
|
|
(50.0
|
)
|
|||||
|
Net Income
|
|
|
|
|
|
|
|
55.5
|
|
|
|
|
|
55.5
|
|
|||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019
|
|
$
|
260.4
|
|
|
$
|
1,828.7
|
|
|
$
|
2,011.2
|
|
|
$
|
(6.7
|
)
|
|
$
|
4,093.6
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
|
$
|
2.3
|
|
|
$
|
4.2
|
|
|
Restricted Cash for Securitized Funding
|
|
25.4
|
|
|
25.6
|
|
||
|
Advances to Affiliates
|
|
22.7
|
|
|
23.0
|
|
||
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
127.2
|
|
|
146.5
|
|
||
|
Affiliated Companies
|
|
54.9
|
|
|
73.4
|
|
||
|
Accrued Unbilled Revenues
|
|
43.8
|
|
|
63.5
|
|
||
|
Miscellaneous
|
|
1.2
|
|
|
2.3
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(2.2
|
)
|
|
(2.3
|
)
|
||
|
Total Accounts Receivable
|
|
224.9
|
|
|
283.4
|
|
||
|
Fuel
|
|
110.9
|
|
|
61.3
|
|
||
|
Materials and Supplies
|
|
101.8
|
|
|
100.1
|
|
||
|
Risk Management Assets
|
|
74.7
|
|
|
57.2
|
|
||
|
Regulatory Asset for Under-Recovered Fuel Costs
|
|
58.1
|
|
|
99.6
|
|
||
|
Prepayments and Other Current Assets
|
|
29.6
|
|
|
44.3
|
|
||
|
TOTAL CURRENT ASSETS
|
|
650.4
|
|
|
698.7
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
|
Electric:
|
|
|
|
|
||||
|
Generation
|
|
6,547.5
|
|
|
6,509.6
|
|
||
|
Transmission
|
|
3,388.8
|
|
|
3,317.7
|
|
||
|
Distribution
|
|
4,078.8
|
|
|
3,989.4
|
|
||
|
Other Property, Plant and Equipment
|
|
517.0
|
|
|
485.8
|
|
||
|
Construction Work in Progress
|
|
556.1
|
|
|
490.2
|
|
||
|
Total Property, Plant and Equipment
|
|
15,088.2
|
|
|
14,792.7
|
|
||
|
Accumulated Depreciation and Amortization
|
|
4,230.8
|
|
|
4,124.4
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
10,857.4
|
|
|
10,668.3
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
|
470.1
|
|
|
475.8
|
|
||
|
Securitized Assets
|
|
246.6
|
|
|
258.7
|
|
||
|
Long-term Risk Management Assets
|
|
0.4
|
|
|
0.9
|
|
||
|
Operating Lease Assets
|
|
78.3
|
|
|
—
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
176.1
|
|
|
188.1
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
971.5
|
|
|
923.5
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
12,479.3
|
|
|
$
|
12,290.5
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in millions)
|
||||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
26.1
|
|
|
$
|
205.6
|
|
|
Accounts Payable:
|
|
|
|
|
|
|
||
|
General
|
|
290.7
|
|
|
263.8
|
|
||
|
Affiliated Companies
|
|
67.5
|
|
|
84.0
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
|
|
150.0
|
|
|
430.7
|
|
||
|
Risk Management Liabilities
|
|
4.6
|
|
|
0.4
|
|
||
|
Customer Deposits
|
|
87.2
|
|
|
88.4
|
|
||
|
Accrued Taxes
|
|
84.8
|
|
|
89.3
|
|
||
|
Accrued Interest
|
|
47.0
|
|
|
41.5
|
|
||
|
Obligations Under Operating Leases
|
|
14.9
|
|
|
—
|
|
||
|
Other Current Liabilities
|
|
108.7
|
|
|
150.3
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
881.5
|
|
|
1,354.0
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
|
|
4,224.8
|
|
|
3,631.9
|
|
||
|
Long-term Risk Management Liabilities
|
|
0.1
|
|
|
0.2
|
|
||
|
Deferred Income Taxes
|
|
1,633.4
|
|
|
1,625.8
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,363.6
|
|
|
1,449.7
|
|
||
|
Asset Retirement Obligations
|
|
105.5
|
|
|
107.1
|
|
||
|
Employee Benefits and Pension Obligations
|
|
53.8
|
|
|
57.1
|
|
||
|
Obligations Under Operating Leases
|
|
63.8
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
59.2
|
|
|
58.6
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
7,504.2
|
|
|
6,930.4
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
8,385.7
|
|
|
8,284.4
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
COMMON SHAREHOLDER’S EQUITY
|
|
|
|
|
||||
|
Common Stock – No Par Value:
|
|
|
|
|
||||
|
Authorized – 30,000,000 Shares
|
|
|
|
|
|
|||
|
Outstanding – 13,499,500 Shares
|
|
260.4
|
|
|
260.4
|
|
||
|
Paid-in Capital
|
|
1,828.7
|
|
|
1,828.7
|
|
||
|
Retained Earnings
|
|
2,011.2
|
|
|
1,922.0
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
(6.7
|
)
|
|
(5.0
|
)
|
||
|
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
4,093.6
|
|
|
4,006.1
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
12,479.3
|
|
|
$
|
12,290.5
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
189.2
|
|
|
$
|
202.9
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
|
Depreciation and Amortization
|
|
229.6
|
|
|
213.8
|
|
||
|
Deferred Income Taxes
|
|
(73.5
|
)
|
|
10.8
|
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(7.7
|
)
|
|
(5.5
|
)
|
||
|
Mark-to-Market of Risk Management Contracts
|
|
(12.9
|
)
|
|
(36.1
|
)
|
||
|
Deferred Fuel Over/Under-Recovery, Net
|
|
41.4
|
|
|
(73.8
|
)
|
||
|
Change in Other Noncurrent Assets
|
|
(1.8
|
)
|
|
32.0
|
|
||
|
Change in Other Noncurrent Liabilities
|
|
(31.2
|
)
|
|
68.7
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
|
Accounts Receivable, Net
|
|
60.2
|
|
|
4.7
|
|
||
|
Fuel, Materials and Supplies
|
|
(50.2
|
)
|
|
20.2
|
|
||
|
Accounts Payable
|
|
23.0
|
|
|
(11.1
|
)
|
||
|
Accrued Taxes, Net
|
|
(7.8
|
)
|
|
(7.6
|
)
|
||
|
Other Current Assets
|
|
17.4
|
|
|
7.1
|
|
||
|
Other Current Liabilities
|
|
(29.8
|
)
|
|
(21.9
|
)
|
||
|
Net Cash Flows from Operating Activities
|
|
345.9
|
|
|
404.2
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
|
Construction Expenditures
|
|
(397.1
|
)
|
|
(406.8
|
)
|
||
|
Change in Advances to Affiliates, Net
|
|
0.3
|
|
|
0.1
|
|
||
|
Other Investing Activities
|
|
20.7
|
|
|
7.8
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(376.1
|
)
|
|
(398.9
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
478.3
|
|
|
103.7
|
|
||
|
Change in Advances from Affiliates, Net
|
|
(179.5
|
)
|
|
(13.3
|
)
|
||
|
Retirement of Long-term Debt – Nonaffiliated
|
|
(168.0
|
)
|
|
(11.7
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(3.1
|
)
|
|
(3.4
|
)
|
||
|
Dividends Paid on Common Stock
|
|
(100.0
|
)
|
|
(80.0
|
)
|
||
|
Other Financing Activities
|
|
0.4
|
|
|
0.7
|
|
||
|
Net Cash Flows from (Used for) Financing Activities
|
|
28.1
|
|
|
(4.0
|
)
|
||
|
|
|
|
|
|
||||
|
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash for Securitized Funding
|
|
(2.1
|
)
|
|
1.3
|
|
||
|
Cash, Cash Equivalents and Restricted Cash for Securitized Funding at Beginning of Period
|
|
29.8
|
|
|
19.2
|
|
||
|
Cash, Cash Equivalents and Restricted Cash for Securitized Funding at End of Period
|
|
$
|
27.7
|
|
|
$
|
20.5
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
91.6
|
|
|
$
|
90.9
|
|
|
Net Cash Paid for Income Taxes
|
|
35.0
|
|
|
19.7
|
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
5.7
|
|
|
2.7
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
116.5
|
|
|
89.5
|
|
||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
1,048
|
|
|
1,245
|
|
|
2,663
|
|
|
2,868
|
|
|
Commercial
|
1,087
|
|
|
1,196
|
|
|
2,243
|
|
|
2,360
|
|
|
Industrial
|
1,917
|
|
|
1,986
|
|
|
3,805
|
|
|
3,902
|
|
|
Miscellaneous
|
14
|
|
|
15
|
|
|
33
|
|
|
35
|
|
|
Total Retail (a)
|
4,066
|
|
|
4,442
|
|
|
8,744
|
|
|
9,165
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale
|
2,021
|
|
|
2,388
|
|
|
4,444
|
|
|
5,314
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
6,087
|
|
|
6,830
|
|
|
13,188
|
|
|
14,479
|
|
|
(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.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Actual – Heating (a)
|
217
|
|
|
364
|
|
|
2,456
|
|
|
2,521
|
|
|
Normal – Heating (b)
|
241
|
|
|
235
|
|
|
2,401
|
|
|
2,403
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
233
|
|
|
362
|
|
|
233
|
|
|
362
|
|
|
Normal – Cooling (b)
|
261
|
|
|
261
|
|
|
263
|
|
|
263
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
94.7
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
15.8
|
|
|
|
Off-system Sales
|
|
(2.1
|
)
|
|
|
Transmission Revenues
|
|
(9.3
|
)
|
|
|
Other Revenues
|
|
3.4
|
|
|
|
Total Change in Gross Margin
|
|
7.8
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(21.3
|
)
|
|
|
Depreciation and Amortization
|
|
(24.7
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(1.3
|
)
|
|
|
Other Income
|
|
1.2
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.1
|
)
|
|
|
Interest Expense
|
|
3.2
|
|
|
|
Total Change in Expenses and Other
|
|
(43.0
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
0.8
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
60.3
|
|
|
•
|
Retail Margins increased $16 million primarily due to the following:
|
|
•
|
A $28 million increase from rate proceedings, inclusive of a $24 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below.
|
|
•
|
A $13 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.
|
|
•
|
An $18 million decrease in weather-related usage primarily due to a 36% decrease in cooling degree days and a 40% decrease in heating degree days.
|
|
•
|
An $11 million decrease in weather-normalized margins across all retail classes.
|
|
•
|
Transmission Revenues decreased $9 million primarily due to the 2018 PJM Transmission formula rate true-up.
|
|
•
|
Other Operation and Maintenance expenses increased $21 million primarily due to the following:
|
|
•
|
A $19 million increase in transmission expenses primarily due to a $25 million increase in recoverable PJM Expenses, partially offset by a $7 million decrease from the 2018 Regional Transmission Enhancement Plan settlement. This increase was partially offset in Retail Margins above.
|
|
•
|
A $4 million increase in nonutility operation expenses primarily due to an increase in River Transportation Division expenses. This increase was offset by a corresponding increase in Gross Margin above.
|
|
•
|
A $3 million decrease in generation expenses at Cook Plant primarily due to decreased incremental refueling outage costs.
|
|
•
|
Depreciation and Amortization expenses increased $25 million primarily due to increased depreciation rates approved in 2018 and higher depreciable base. This increase was partially offset in Retail Margins above.
|
|
•
|
Interest Expense decreased $3 million primarily due to the reissuance of long-term debt at lower interest rates in 2018.
|
|
•
|
Income Tax Expense (Benefit) decreased $1 million primarily due to decreased pretax book income offset by decreased amortization of Excess ADIT not subject to normalization requirements and increased state income taxes.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
158.9
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
72.2
|
|
|
|
Off-system Sales
|
|
(9.4
|
)
|
|
|
Transmission Revenues
|
|
(10.3
|
)
|
|
|
Other Revenues
|
|
0.3
|
|
|
|
Total Change in Gross Margin
|
|
52.8
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
(19.5
|
)
|
|
|
Depreciation and Amortization
|
|
(51.6
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(3.6
|
)
|
|
|
Other Income
|
|
2.5
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.2
|
)
|
|
|
Interest Expense
|
|
4.0
|
|
|
|
Total Change in Expenses and Other
|
|
(68.4
|
)
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
15.9
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
159.2
|
|
|
•
|
Retail Margins increased $72 million primarily due to the following:
|
|
•
|
A $75 million increase from rate proceedings, inclusive of a $33 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below.
|
|
•
|
A $10 million increase due to the timing of recovery of the Indiana PJM/OSS rider. This increase was partially offset in other expense items below.
|
|
•
|
A $4 million decrease in fuel-related expenses due to timing of recovery for fuel and other variable production costs related to wholesale contracts.
|
|
•
|
A $15 million decrease in weather-related usage primarily due to a 36% decrease in cooling degree days.
|
|
•
|
A $10 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 $10 million primarily due to the 2018 PJM Transmission formula rate true-up.
|
|
•
|
Other Operation and Maintenance expenses increased $20 million primarily due to the following:
|
|
•
|
A $16 million increase in transmission expenses primarily due to a $31 million increase in recoverable PJM Expenses, partially offset by a $15 million decrease from the 2018 Regional Transmission Enhancement Plan settlement. This increase was partially offset in Retail Margins above.
|
|
•
|
A $4 million increase in distribution costs primarily due to vegetation management expenses.
|
|
•
|
A $4 million increase in employee-related expenses.
|
|
•
|
A $3 million increase in demand-side management expenses. This increase was offset within Retail Margins above.
|
|
•
|
A $2 million increase in nonutility operation expenses primarily due to an increase in River Transportation Division expenses. The increase was offset by a corresponding increase in Gross Margin above.
|
|
•
|
A $7 million decrease in generation expenses at Cook Plant primarily due to decreased incremental refueling outage costs.
|
|
•
|
A $3 million decrease in the amortization of discontinued riders in the Indiana jurisdiction.
|
|
•
|
Depreciation and Amortization expenses increased $52 million primarily due to increased depreciation rates approved in 2018 and higher depreciable base. This increase was partially offset in Retail Margins above.
|
|
•
|
Interest Expense decreased $4 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 an increase in amortization of Excess ADIT not subject to normalization requirements. This decrease was partially offset in Gross Margin above.
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
|
Electric Generation, Transmission and Distribution
|
|
$
|
517.4
|
|
|
$
|
560.1
|
|
|
$
|
1,114.1
|
|
|
$
|
1,114.0
|
|
|
Sales to AEP Affiliates
|
|
2.3
|
|
|
10.8
|
|
|
4.6
|
|
|
15.5
|
|
||||
|
Other Revenues – Affiliated
|
|
20.9
|
|
|
16.4
|
|
|
34.2
|
|
|
29.6
|
|
||||
|
Other Revenues – Nonaffiliated
|
|
2.5
|
|
|
2.4
|
|
|
4.5
|
|
|
7.4
|
|
||||
|
TOTAL REVENUES
|
|
543.1
|
|
|
589.7
|
|
|
1,157.4
|
|
|
1,166.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel and Other Consumables Used for Electric Generation
|
|
42.4
|
|
|
73.4
|
|
|
100.0
|
|
|
150.9
|
|
||||
|
Purchased Electricity for Resale
|
|
48.9
|
|
|
63.2
|
|
|
118.5
|
|
|
118.8
|
|
||||
|
Purchased Electricity from AEP Affiliates
|
|
51.3
|
|
|
60.4
|
|
|
111.1
|
|
|
121.8
|
|
||||
|
Other Operation
|
|
154.5
|
|
|
130.4
|
|
|
295.0
|
|
|
276.5
|
|
||||
|
Maintenance
|
|
54.6
|
|
|
57.4
|
|
|
112.9
|
|
|
111.9
|
|
||||
|
Depreciation and Amortization
|
|
87.3
|
|
|
62.6
|
|
|
173.5
|
|
|
121.9
|
|
||||
|
Taxes Other Than Income Taxes
|
|
26.2
|
|
|
24.9
|
|
|
53.5
|
|
|
49.9
|
|
||||
|
TOTAL EXPENSES
|
|
465.2
|
|
|
472.3
|
|
|
964.5
|
|
|
951.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
77.9
|
|
|
117.4
|
|
|
192.9
|
|
|
214.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Income
|
|
6.1
|
|
|
4.9
|
|
|
11.8
|
|
|
9.3
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
4.4
|
|
|
4.5
|
|
|
8.8
|
|
|
9.0
|
|
||||
|
Interest Expense
|
|
(28.2
|
)
|
|
(31.4
|
)
|
|
(57.1
|
)
|
|
(61.1
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
60.2
|
|
|
95.4
|
|
|
156.4
|
|
|
172.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense (Benefit)
|
|
(0.1
|
)
|
|
0.7
|
|
|
(2.8
|
)
|
|
13.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
$
|
60.3
|
|
|
$
|
94.7
|
|
|
$
|
159.2
|
|
|
$
|
158.9
|
|
|
The common stock of I&M is wholly-owned by Parent.
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
60.3
|
|
|
$
|
94.7
|
|
|
$
|
159.2
|
|
|
$
|
158.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash Flow Hedges, Net of Tax of $0.1 and $0.1 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $0.2 and $0.2 for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
0.4
|
|
|
0.5
|
|
|
0.8
|
|
|
0.9
|
|
||||
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $0 and $0 for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL OTHER COMPREHENSIVE INCOME
|
|
0.3
|
|
|
0.5
|
|
|
0.7
|
|
|
0.9
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
60.6
|
|
|
$
|
95.2
|
|
|
$
|
159.9
|
|
|
$
|
159.8
|
|
|
|
|
Common
Stock |
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017
|
|
$
|
56.6
|
|
|
$
|
980.9
|
|
|
$
|
1,192.2
|
|
|
$
|
(12.1
|
)
|
|
$
|
2,217.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
|
(33.5
|
)
|
|
|
|
|
(33.5
|
)
|
|||||
|
ASU 2018-02 Adoption
|
|
|
|
|
|
0.3
|
|
|
(2.7
|
)
|
|
(2.4
|
)
|
|||||||
|
Net Income
|
|
|
|
|
|
|
|
64.2
|
|
|
|
|
|
64.2
|
|
|||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
0.4
|
|
|
0.4
|
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018
|
|
56.6
|
|
|
980.9
|
|
|
1,223.2
|
|
|
(14.4
|
)
|
|
2,246.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(33.5
|
)
|
|
|
|
(33.5
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
94.7
|
|
|
|
|
94.7
|
|
||||||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
0.5
|
|
|
0.5
|
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018
|
|
$
|
56.6
|
|
|
$
|
980.9
|
|
|
$
|
1,284.4
|
|
|
$
|
(13.9
|
)
|
|
$
|
2,308.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018
|
|
$
|
56.6
|
|
|
$
|
980.9
|
|
|
$
|
1,329.1
|
|
|
$
|
(13.8
|
)
|
|
$
|
2,352.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(20.0
|
)
|
|
|
|
(20.0
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
98.9
|
|
|
|
|
98.9
|
|
||||||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
0.4
|
|
|
0.4
|
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019
|
|
56.6
|
|
|
980.9
|
|
|
1,408.0
|
|
|
(13.4
|
)
|
|
2,432.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
|
(20.0
|
)
|
|
|
|
|
(20.0
|
)
|
|||||
|
Net Income
|
|
|
|
|
|
|
|
60.3
|
|
|
|
|
|
60.3
|
|
|||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019
|
|
$
|
56.6
|
|
|
$
|
980.9
|
|
|
$
|
1,448.3
|
|
|
$
|
(13.1
|
)
|
|
$
|
2,472.7
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
|
$
|
1.4
|
|
|
$
|
2.4
|
|
|
Advances to Affiliates
|
|
13.0
|
|
|
12.7
|
|
||
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
55.9
|
|
|
63.1
|
|
||
|
Affiliated Companies
|
|
47.3
|
|
|
75.0
|
|
||
|
Accrued Unbilled Revenues
|
|
3.0
|
|
|
3.6
|
|
||
|
Miscellaneous
|
|
1.1
|
|
|
1.4
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||
|
Total Accounts Receivable
|
|
107.2
|
|
|
143.0
|
|
||
|
Fuel
|
|
39.3
|
|
|
37.3
|
|
||
|
Materials and Supplies
|
|
169.1
|
|
|
167.3
|
|
||
|
Risk Management Assets
|
|
15.7
|
|
|
8.6
|
|
||
|
Accrued Tax Benefits
|
|
41.6
|
|
|
26.6
|
|
||
|
Accrued Reimbursement of Spent Nuclear Fuel Costs
|
|
23.8
|
|
|
7.9
|
|
||
|
Prepayments and Other Current Assets
|
|
16.4
|
|
|
24.6
|
|
||
|
TOTAL CURRENT ASSETS
|
|
427.5
|
|
|
430.4
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
|
Electric:
|
|
|
|
|
||||
|
Generation
|
|
4,987.2
|
|
|
4,887.2
|
|
||
|
Transmission
|
|
1,601.9
|
|
|
1,576.8
|
|
||
|
Distribution
|
|
2,331.5
|
|
|
2,249.7
|
|
||
|
Other Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel)
|
|
617.0
|
|
|
583.8
|
|
||
|
Construction Work in Progress
|
|
474.1
|
|
|
465.3
|
|
||
|
Total Property, Plant and Equipment
|
|
10,011.7
|
|
|
9,762.8
|
|
||
|
Accumulated Depreciation, Depletion and Amortization
|
|
3,227.6
|
|
|
3,151.6
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
6,784.1
|
|
|
6,611.2
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
|
492.3
|
|
|
512.5
|
|
||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
2,776.4
|
|
|
2,474.9
|
|
||
|
Long-term Risk Management Assets
|
|
0.3
|
|
|
0.6
|
|
||
|
Operating Lease Assets
|
|
312.6
|
|
|
—
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
156.4
|
|
|
193.0
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
3,738.0
|
|
|
3,181.0
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
10,949.6
|
|
|
$
|
10,222.6
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
94.7
|
|
|
$
|
1.1
|
|
|
Accounts Payable:
|
|
|
|
|
||||
|
General
|
|
176.6
|
|
|
174.7
|
|
||
|
Affiliated Companies
|
|
54.1
|
|
|
70.2
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
(June 30, 2019 and December 31, 2018 Amounts Include $76.6 and $76.8, Respectively, Related to DCC Fuel) |
|
155.1
|
|
|
155.4
|
|
||
|
Risk Management Liabilities
|
|
1.2
|
|
|
0.3
|
|
||
|
Customer Deposits
|
|
38.2
|
|
|
38.0
|
|
||
|
Accrued Taxes
|
|
89.8
|
|
|
90.7
|
|
||
|
Accrued Interest
|
|
36.7
|
|
|
37.3
|
|
||
|
Obligations Under Operating Leases
|
|
82.2
|
|
|
—
|
|
||
|
Regulatory Liability for Over-Receovered Fuel Costs
|
|
10.9
|
|
|
27.4
|
|
||
|
Other Current Liabilities
|
|
71.4
|
|
|
103.0
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
810.9
|
|
|
698.1
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
|
|
2,899.4
|
|
|
2,880.0
|
|
||
|
Long-term Risk Management Liabilities
|
|
—
|
|
|
0.1
|
|
||
|
Deferred Income Taxes
|
|
965.9
|
|
|
948.0
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,788.0
|
|
|
1,574.5
|
|
||
|
Asset Retirement Obligations
|
|
1,714.6
|
|
|
1,681.3
|
|
||
|
Obligations Under Operating Leases
|
|
234.7
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
63.4
|
|
|
87.8
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
7,666.0
|
|
|
7,171.7
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
8,476.9
|
|
|
7,869.8
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
COMMON SHAREHOLDER’S EQUITY
|
|
|
|
|
||||
|
Common Stock – No Par Value:
|
|
|
|
|
||||
|
Authorized – 2,500,000 Shares
|
|
|
|
|
||||
|
Outstanding – 1,400,000 Shares
|
|
56.6
|
|
|
56.6
|
|
||
|
Paid-in Capital
|
|
980.9
|
|
|
980.9
|
|
||
|
Retained Earnings
|
|
1,448.3
|
|
|
1,329.1
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
(13.1
|
)
|
|
(13.8
|
)
|
||
|
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,472.7
|
|
|
2,352.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
10,949.6
|
|
|
$
|
10,222.6
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
159.2
|
|
|
$
|
158.9
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|||
|
Depreciation and Amortization
|
|
173.5
|
|
|
121.9
|
|
||
|
Deferred Income Taxes
|
|
(17.2
|
)
|
|
33.1
|
|
||
|
Deferral of Incremental Nuclear Refueling Outage Expenses, Net
|
|
(14.3
|
)
|
|
(3.5
|
)
|
||
|
Carrying Costs Income
|
|
1.4
|
|
|
(4.0
|
)
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(12.5
|
)
|
|
(4.1
|
)
|
||
|
Mark-to-Market of Risk Management Contracts
|
|
(6.0
|
)
|
|
(5.2
|
)
|
||
|
Amortization of Nuclear Fuel
|
|
46.1
|
|
|
51.4
|
|
||
|
Deferred Fuel Over/Under-Recovery, Net
|
|
(16.5
|
)
|
|
8.1
|
|
||
|
Change in Other Noncurrent Assets
|
|
32.6
|
|
|
(5.6
|
)
|
||
|
Change in Other Noncurrent Liabilities
|
|
(3.6
|
)
|
|
44.4
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
|
Accounts Receivable, Net
|
|
35.8
|
|
|
(18.3
|
)
|
||
|
Fuel, Materials and Supplies
|
|
(3.8
|
)
|
|
(5.0
|
)
|
||
|
Accounts Payable
|
|
(50.4
|
)
|
|
(12.2
|
)
|
||
|
Accrued Taxes, Net
|
|
(15.9
|
)
|
|
0.8
|
|
||
|
Other Current Assets
|
|
9.6
|
|
|
1.2
|
|
||
|
Other Current Liabilities
|
|
(38.6
|
)
|
|
(16.9
|
)
|
||
|
Net Cash Flows from Operating Activities
|
|
279.4
|
|
|
345.0
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
|
Construction Expenditures
|
|
(293.8
|
)
|
|
(284.7
|
)
|
||
|
Change in Advances to Affiliates, Net
|
|
(0.3
|
)
|
|
(79.9
|
)
|
||
|
Purchases of Investment Securities
|
|
(226.6
|
)
|
|
(1,067.8
|
)
|
||
|
Sales of Investment Securities
|
|
199.5
|
|
|
1,037.8
|
|
||
|
Acquisitions of Nuclear Fuel
|
|
(33.8
|
)
|
|
(24.2
|
)
|
||
|
Other Investing Activities
|
|
9.0
|
|
|
8.2
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(346.0
|
)
|
|
(410.6
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
62.8
|
|
|
700.6
|
|
||
|
Change in Advances from Affiliates, Net
|
|
93.6
|
|
|
(211.6
|
)
|
||
|
Retirement of Long-term Debt – Nonaffiliated
|
|
(48.3
|
)
|
|
(352.4
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(2.7
|
)
|
|
(5.2
|
)
|
||
|
Dividends Paid on Common Stock
|
|
(40.0
|
)
|
|
(67.0
|
)
|
||
|
Other Financing Activities
|
|
0.2
|
|
|
1.3
|
|
||
|
Net Cash Flows from Financing Activities
|
|
65.6
|
|
|
65.7
|
|
||
|
|
|
|
|
|
||||
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
(1.0
|
)
|
|
0.1
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
|
2.4
|
|
|
1.3
|
|
||
|
Cash and Cash Equivalents at End of Period
|
|
$
|
1.4
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
55.2
|
|
|
$
|
55.2
|
|
|
Net Cash Paid (Received) for Income Taxes
|
|
27.9
|
|
|
(23.6
|
)
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
4.5
|
|
|
3.2
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
77.7
|
|
|
86.5
|
|
||
|
Acquisition of Nuclear Fuel Included in Current Liabilities as of June 30,
|
|
50.5
|
|
|
0.6
|
|
||
|
Expected Reimbursement for Capital Cost of Spent Nuclear Fuel Dry Cask Storage
|
|
—
|
|
|
0.7
|
|
||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
2,791
|
|
|
3,287
|
|
|
6,914
|
|
|
7,420
|
|
|
Commercial
|
3,478
|
|
|
3,642
|
|
|
7,005
|
|
|
7,175
|
|
|
Industrial
|
3,624
|
|
|
3,805
|
|
|
7,247
|
|
|
7,378
|
|
|
Miscellaneous
|
26
|
|
|
26
|
|
|
57
|
|
|
57
|
|
|
Total Retail (a)(b)
|
9,919
|
|
|
10,760
|
|
|
21,223
|
|
|
22,030
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale (c)
|
440
|
|
|
534
|
|
|
1,078
|
|
|
1,201
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
10,359
|
|
|
11,294
|
|
|
22,301
|
|
|
23,231
|
|
|
(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
|
|
Six Months Ended
|
||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
|
(in degree days)
|
||||||||||
|
Actual – Heating (a)
|
|
114
|
|
|
274
|
|
|
2,006
|
|
|
2,158
|
|
|
Normal – Heating (b)
|
|
189
|
|
|
186
|
|
|
2,066
|
|
|
2,070
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
|
303
|
|
|
454
|
|
|
304
|
|
|
458
|
|
|
Normal – Cooling (b)
|
|
298
|
|
|
291
|
|
|
301
|
|
|
294
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
68.8
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
(63.2
|
)
|
|
|
Off-system Sales
|
|
(7.9
|
)
|
|
|
Transmission Revenues
|
|
(5.0
|
)
|
|
|
Other Revenues
|
|
1.8
|
|
|
|
Total Change in Gross Margin
|
|
(74.3
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
45.0
|
|
|
|
Depreciation and Amortization
|
|
9.0
|
|
|
|
Taxes Other Than Income Taxes
|
|
(7.0
|
)
|
|
|
Interest Income
|
|
0.2
|
|
|
|
Carrying Costs Income
|
|
(0.4
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
0.8
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.3
|
)
|
|
|
Interest Expense
|
|
(0.3
|
)
|
|
|
Total Change in Expenses and Other
|
|
47.0
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
9.1
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
50.6
|
|
|
•
|
Retail Margins decreased $63 million primarily due to the following:
|
|
•
|
A $60 million net decrease in Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
An $8 million decrease in usage primarily in the residential and commercial classes.
|
|
•
|
A $6 million decrease in revenues associated with vegetation management riders. 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 $6 million decrease in rider revenues associated with the DIR. This decrease was partially offset in various expenses below.
|
|
•
|
A $12 million increase in revenues associated with smart grid riders. This increase was partially offset by increases in other expense items below.
|
|
•
|
An $8 million increase due to the recovery of higher current year losses from a power contract with OVEC. This increase was offset by a corresponding decrease in Margins from Off-system Sales below.
|
|
•
|
Margins from Off-system Sales decreased $8 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 by a corresponding increase in Retail Margins above.
|
|
•
|
Transmission Revenues decreased $5 million primarily due to the annual PJM Transmission formula rate true-up.
|
|
•
|
Other Operation and Maintenance expenses decreased $45 million primarily due to the following:
|
|
•
|
An $83 million decrease in recoverable PJM expenses. This decrease was offset within Gross Margins above.
|
|
•
|
A $35 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
|
•
|
Depreciation and Amortization expenses decreased $9 million primarily due to the following:
|
|
•
|
A $14 million decrease in recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
|
•
|
A $6 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
|
•
|
Taxes Other Than Income Taxes increased $7 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 decreased $9 million primarily due to increased amortization of Excess ADIT not subject to normalization requirements. This decrease was partially offset in Gross Margin above.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
148.4
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins
|
|
12.1
|
|
|
|
Off-system Sales
|
|
(8.7
|
)
|
|
|
Transmission Revenues
|
|
5.4
|
|
|
|
Other Revenues
|
|
4.4
|
|
|
|
Total Change in Gross Margin
|
|
13.2
|
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
5.0
|
|
|
|
Depreciation and Amortization
|
|
10.5
|
|
|
|
Taxes Other Than Income Taxes
|
|
(10.8
|
)
|
|
|
Interest Income
|
|
0.1
|
|
|
|
Carrying Costs Income
|
|
(0.9
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
3.5
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.5
|
)
|
|
|
Interest Expense
|
|
0.3
|
|
|
|
Total Change in Expenses and Other
|
|
7.2
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
9.8
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
178.6
|
|
|
•
|
Retail Margins increased $12 million primarily due to the following:
|
|
•
|
A $58 million increase due to a reversal of a regulatory provision.
|
|
•
|
A $22 million increase in revenues associated with smart grid riders. This increase was partially offset by increases in other expense items below.
|
|
•
|
A $9 million increase due to the recovery of higher current year losses from a power contract with OVEC. This increase was offset by a corresponding decrease in Margins from Off-system Sales below.
|
|
•
|
A $6 million increase in Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset by a corresponding increase in Other Operation and Maintenance expenses below.
|
|
•
|
A $43 million net decrease in Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset by a decrease in Other Operation and Maintenance expenses below.
|
|
•
|
A $12 million decrease in revenues associated with vegetation management riders. This decrease was offset in Other Operation and Maintenance expenses below.
|
|
•
|
An $11 million decrease in usage primarily in the residential and commercial classes.
|
|
•
|
A $10 million net decrease in margin for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019.
|
|
•
|
An $8 million decrease in rider revenues associated with the DIR. This decrease was partially offset in various expenses below.
|
|
•
|
Margins from Off-system Sales decreased $9 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 by a corresponding increase in Retail Margins above.
|
|
•
|
Transmission Revenues increased $5 million primarily due to 2018 provisions for refunds, partially offset by the annual PJM Transmission formula rate true-up.
|
|
•
|
Other Revenues increased $4 million primarily due to distribution connection fees and pole attachment revenues.
|
|
•
|
Other Operation and Maintenance expenses decreased $5 million primarily due to the following:
|
|
•
|
A $52 million decrease in recoverable PJM expenses. This decrease was offset within Gross Margins above.
|
|
•
|
A $45 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
|
•
|
Depreciation and Amortization expenses decreased $11 million primarily due to the following:
|
|
•
|
A $24 million decrease in recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
|
•
|
A $13 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
|
•
|
Taxes Other Than Income Taxes increased $11 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 $4 million primarily due to adjustments that resulted from 2019 FERC audit findings.
|
|
•
|
Income Tax Expense decreased $10 million due to increased amortization of Excess ADIT not subject to normalization requirements partially offset by an increase in pretax book income. This decrease was partially offset in Gross Margin above.
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
|
Electricity, Transmission and Distribution
|
|
$
|
602.3
|
|
|
$
|
735.9
|
|
|
$
|
1,428.8
|
|
|
$
|
1,522.2
|
|
|
Sales to AEP Affiliates
|
|
1.7
|
|
|
11.5
|
|
|
9.2
|
|
|
14.6
|
|
||||
|
Other Revenues
|
|
2.6
|
|
|
1.4
|
|
|
5.4
|
|
|
2.9
|
|
||||
|
TOTAL REVENUES
|
|
606.6
|
|
|
748.8
|
|
|
1,443.4
|
|
|
1,539.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Purchased Electricity for Resale
|
|
121.5
|
|
|
162.9
|
|
|
295.7
|
|
|
368.4
|
|
||||
|
Purchased Electricity from AEP Affiliates
|
|
33.7
|
|
|
27.9
|
|
|
79.8
|
|
|
58.1
|
|
||||
|
Amortization of Generation Deferrals
|
|
24.1
|
|
|
56.4
|
|
|
56.5
|
|
|
115.0
|
|
||||
|
Other Operation
|
|
153.9
|
|
|
199.0
|
|
|
370.8
|
|
|
371.2
|
|
||||
|
Maintenance
|
|
34.2
|
|
|
34.1
|
|
|
66.7
|
|
|
71.3
|
|
||||
|
Depreciation and Amortization
|
|
56.1
|
|
|
65.1
|
|
|
119.4
|
|
|
129.9
|
|
||||
|
Taxes Other Than Income Taxes
|
|
106.0
|
|
|
99.0
|
|
|
214.9
|
|
|
204.1
|
|
||||
|
TOTAL EXPENSES
|
|
529.5
|
|
|
644.4
|
|
|
1,203.8
|
|
|
1,318.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
77.1
|
|
|
104.4
|
|
|
239.6
|
|
|
221.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest Income
|
|
1.1
|
|
|
0.9
|
|
|
1.9
|
|
|
1.8
|
|
||||
|
Carrying Costs Income
|
|
0.2
|
|
|
0.6
|
|
|
0.4
|
|
|
1.3
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
4.1
|
|
|
3.3
|
|
|
9.3
|
|
|
5.8
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
3.6
|
|
|
3.9
|
|
|
7.3
|
|
|
7.8
|
|
||||
|
Interest Expense
|
|
(25.6
|
)
|
|
(25.3
|
)
|
|
(50.2
|
)
|
|
(50.5
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE
|
|
60.5
|
|
|
87.8
|
|
|
208.3
|
|
|
187.9
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense
|
|
9.9
|
|
|
19.0
|
|
|
29.7
|
|
|
39.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
$
|
50.6
|
|
|
$
|
68.8
|
|
|
$
|
178.6
|
|
|
$
|
148.4
|
|
|
The common stock of OPCo is wholly-owned by Parent.
|
||||
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
50.6
|
|
|
$
|
68.8
|
|
|
$
|
178.6
|
|
|
$
|
148.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash Flow Hedges, Net of Tax of $(0.1) and $(0.1) for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(0.2) and $(0.2) for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(0.6
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
50.2
|
|
|
$
|
68.5
|
|
|
$
|
177.9
|
|
|
$
|
147.8
|
|
|
|
|
Common
Stock |
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017
|
|
$
|
321.2
|
|
|
$
|
838.8
|
|
|
$
|
1,148.4
|
|
|
$
|
1.9
|
|
|
$
|
2,310.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
|
(112.5
|
)
|
|
|
|
|
(112.5
|
)
|
|||||
|
ASU 2018-02 Adoption
|
|
|
|
|
|
|
|
0.4
|
|
|
0.4
|
|
||||||||
|
Net Income
|
|
|
|
|
|
|
|
79.6
|
|
|
|
|
|
79.6
|
|
|||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018
|
|
321.2
|
|
|
838.8
|
|
|
1,115.5
|
|
|
2.0
|
|
|
2,277.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(112.5
|
)
|
|
|
|
(112.5
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
68.8
|
|
|
|
|
68.8
|
|
||||||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018
|
|
$
|
321.2
|
|
|
$
|
838.8
|
|
|
$
|
1,071.8
|
|
|
$
|
1.7
|
|
|
$
|
2,233.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018
|
|
$
|
321.2
|
|
|
$
|
838.8
|
|
|
$
|
1,136.4
|
|
|
$
|
1.0
|
|
|
$
|
2,297.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
|
(25.0
|
)
|
|
|
|
|
(25.0
|
)
|
|||||
|
Net Income
|
|
|
|
|
|
|
|
128.0
|
|
|
|
|
|
128.0
|
|
|||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019
|
|
321.2
|
|
|
838.8
|
|
|
1,239.4
|
|
|
0.7
|
|
|
2,400.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(60.0
|
)
|
|
|
|
(60.0
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
50.6
|
|
|
|
|
50.6
|
|
||||||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019
|
|
$
|
321.2
|
|
|
$
|
838.8
|
|
|
$
|
1,230.0
|
|
|
$
|
0.3
|
|
|
$
|
2,390.3
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
|
$
|
2.7
|
|
|
$
|
4.9
|
|
|
Restricted Cash for Securitized Funding
|
|
28.2
|
|
|
27.6
|
|
||
|
Advances to Affiliates
|
|
63.9
|
|
|
—
|
|
||
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
76.5
|
|
|
111.1
|
|
||
|
Affiliated Companies
|
|
51.9
|
|
|
70.8
|
|
||
|
Accrued Unbilled Revenues
|
|
7.5
|
|
|
21.4
|
|
||
|
Miscellaneous
|
|
0.4
|
|
|
0.3
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(1.3
|
)
|
|
(1.0
|
)
|
||
|
Total Accounts Receivable
|
|
135.0
|
|
|
202.6
|
|
||
|
Materials and Supplies
|
|
45.7
|
|
|
42.9
|
|
||
|
Renewable Energy Credits
|
|
28.5
|
|
|
25.9
|
|
||
|
Prepayments and Other Current Assets
|
|
14.3
|
|
|
15.7
|
|
||
|
TOTAL CURRENT ASSETS
|
|
318.3
|
|
|
319.6
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
|
Electric:
|
|
|
|
|
||||
|
Transmission
|
|
2,573.8
|
|
|
2,544.3
|
|
||
|
Distribution
|
|
5,104.6
|
|
|
4,942.3
|
|
||
|
Other Property, Plant and Equipment
|
|
643.3
|
|
|
574.8
|
|
||
|
Construction Work in Progress
|
|
459.4
|
|
|
432.1
|
|
||
|
Total Property, Plant and Equipment
|
|
8,781.1
|
|
|
8,493.5
|
|
||
|
Accumulated Depreciation and Amortization
|
|
2,238.8
|
|
|
2,218.6
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
6,542.3
|
|
|
6,274.9
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
|
370.4
|
|
|
387.5
|
|
||
|
Securitized Assets
|
|
1.8
|
|
|
12.9
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
402.8
|
|
|
441.0
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
775.0
|
|
|
841.4
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
7,635.6
|
|
|
$
|
7,435.9
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
—
|
|
|
$
|
114.1
|
|
|
Accounts Payable:
|
|
|
|
|
|
|
||
|
General
|
|
177.0
|
|
|
211.9
|
|
||
|
Affiliated Companies
|
|
85.6
|
|
|
102.9
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
(June 30, 2019 and December 31, 2018 Amounts Include $24.6 and $47.8, Respectively, Related to Ohio Phase-in-Recovery Funding) |
|
24.7
|
|
|
47.9
|
|
||
|
Risk Management Liabilities
|
|
7.6
|
|
|
5.8
|
|
||
|
Customer Deposits
|
|
88.6
|
|
|
113.1
|
|
||
|
Accrued Taxes
|
|
370.5
|
|
|
537.8
|
|
||
|
Obligations Under Operating Leases
|
|
13.2
|
|
|
—
|
|
||
|
Other Current Liabilities
|
|
181.5
|
|
|
214.2
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
948.7
|
|
|
1,347.7
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
|
|
2,113.5
|
|
|
1,668.7
|
|
||
|
Long-term Risk Management Liabilities
|
|
104.1
|
|
|
93.8
|
|
||
|
Deferred Income Taxes
|
|
788.4
|
|
|
763.3
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,167.7
|
|
|
1,221.2
|
|
||
|
Obligations Under Operating Leases
|
|
75.4
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
47.5
|
|
|
43.8
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
4,296.6
|
|
|
3,790.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
5,245.3
|
|
|
5,138.5
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
COMMON SHAREHOLDER’S EQUITY
|
|
|
|
|
||||
|
Common Stock – No Par Value:
|
|
|
|
|
||||
|
Authorized – 40,000,000 Shares
|
|
|
|
|
|
|||
|
Outstanding – 27,952,473 Shares
|
|
321.2
|
|
|
321.2
|
|
||
|
Paid-in Capital
|
|
838.8
|
|
|
838.8
|
|
||
|
Retained Earnings
|
|
1,230.0
|
|
|
1,136.4
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
0.3
|
|
|
1.0
|
|
||
|
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,390.3
|
|
|
2,297.4
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
7,635.6
|
|
|
$
|
7,435.9
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
178.6
|
|
|
$
|
148.4
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
|
Depreciation and Amortization
|
|
119.4
|
|
|
129.9
|
|
||
|
Amortization of Generation Deferrals
|
|
56.5
|
|
|
115.0
|
|
||
|
Deferred Income Taxes
|
|
9.4
|
|
|
(12.5
|
)
|
||
|
Carrying Costs Income
|
|
(0.4
|
)
|
|
(1.3
|
)
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(9.3
|
)
|
|
(5.8
|
)
|
||
|
Mark-to-Market of Risk Management Contracts
|
|
12.1
|
|
|
(45.5
|
)
|
||
|
Property Taxes
|
|
130.1
|
|
|
129.6
|
|
||
|
Refund of Global Settlement
|
|
(8.2
|
)
|
|
(5.5
|
)
|
||
|
Reversal of Regulatory Provision
|
|
(56.2
|
)
|
|
—
|
|
||
|
Change in Other Noncurrent Assets
|
|
(30.1
|
)
|
|
83.3
|
|
||
|
Change in Other Noncurrent Liabilities
|
|
(38.0
|
)
|
|
56.0
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
|
Accounts Receivable, Net
|
|
70.0
|
|
|
14.0
|
|
||
|
Materials and Supplies
|
|
(8.5
|
)
|
|
(3.6
|
)
|
||
|
Accounts Payable
|
|
(34.9
|
)
|
|
(39.9
|
)
|
||
|
Accrued Taxes, Net
|
|
(169.4
|
)
|
|
(169.5
|
)
|
||
|
Other Current Assets
|
|
(4.2
|
)
|
|
(0.6
|
)
|
||
|
Other Current Liabilities
|
|
2.6
|
|
|
(11.4
|
)
|
||
|
Net Cash Flows from Operating Activities
|
|
219.5
|
|
|
380.6
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
|
Construction Expenditures
|
|
(385.5
|
)
|
|
(312.8
|
)
|
||
|
Change in Advances to Affiliates, Net
|
|
(63.9
|
)
|
|
—
|
|
||
|
Other Investing Activities
|
|
7.5
|
|
|
12.7
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(441.9
|
)
|
|
(300.1
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
444.3
|
|
|
392.9
|
|
||
|
Change in Advances from Affiliates, Net
|
|
(114.1
|
)
|
|
126.1
|
|
||
|
Retirement of Long-term Debt – Nonaffiliated
|
|
(23.4
|
)
|
|
(372.9
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(1.8
|
)
|
|
(1.9
|
)
|
||
|
Dividends Paid on Common Stock
|
|
(85.0
|
)
|
|
(225.0
|
)
|
||
|
Other Financing Activities
|
|
0.8
|
|
|
0.4
|
|
||
|
Net Cash Flows From (Used for) Financing Activities
|
|
220.8
|
|
|
(80.4
|
)
|
||
|
|
|
|
|
|
||||
|
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash for Securitized Funding
|
|
(1.6
|
)
|
|
0.1
|
|
||
|
Cash, Cash Equivalents and Restricted Cash for Securitized Funding at Beginning of Period
|
|
32.5
|
|
|
29.7
|
|
||
|
Cash, Cash Equivalents and Restricted Cash for Securitized Funding at End of Period
|
|
$
|
30.9
|
|
|
$
|
29.8
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
46.1
|
|
|
$
|
48.3
|
|
|
Net Cash Paid for Income Taxes
|
|
14.3
|
|
|
45.1
|
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
6.1
|
|
|
1.9
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
77.9
|
|
|
64.5
|
|
||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
1,289
|
|
|
1,635
|
|
|
2,809
|
|
|
3,128
|
|
|
Commercial
|
1,232
|
|
|
1,348
|
|
|
2,321
|
|
|
2,431
|
|
|
Industrial
|
1,590
|
|
|
1,536
|
|
|
3,023
|
|
|
2,955
|
|
|
Miscellaneous
|
298
|
|
|
335
|
|
|
572
|
|
|
611
|
|
|
Total Retail (a)
|
4,409
|
|
|
4,854
|
|
|
8,725
|
|
|
9,125
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale
|
148
|
|
|
205
|
|
|
393
|
|
|
362
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
4,557
|
|
|
5,059
|
|
|
9,118
|
|
|
9,487
|
|
|
(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
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Actual – Heating (a)
|
28
|
|
|
129
|
|
|
1,199
|
|
|
1,161
|
|
|
Normal – Heating (b)
|
44
|
|
|
40
|
|
|
1,076
|
|
|
1,081
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
610
|
|
|
907
|
|
|
613
|
|
|
919
|
|
|
Normal – Cooling (b)
|
658
|
|
|
650
|
|
|
675
|
|
|
667
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
36.6
|
|
|
|
|
|
||
|
Changes in Gross Margin:
|
|
|
||
|
Retail Margins (a)
|
|
(25.6
|
)
|
|
|
Transmission Revenues
|
|
(0.5
|
)
|
|
|
Other Revenues
|
|
0.4
|
|
|
|
Total Change in Gross Margin
|
|
(25.7
|
)
|
|
|
|
|
|
||
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
26.8
|
|
|
|
Depreciation and Amortization
|
|
(1.4
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(0.3
|
)
|
|
|
Other Income (Expense)
|
|
0.9
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.1
|
)
|
|
|
Interest Expense
|
|
(1.0
|
)
|
|
|
Total Change in Expenses and Other
|
|
24.9
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
6.1
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
41.9
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
|
•
|
Retail Margins decreased $26 million primarily due to the following:
|
|
•
|
A $22 million decrease in weather-related usage due to a 33% decrease in cooling degree days and a 78% decrease in heating degree days.
|
|
•
|
A $7 million decrease in weather-normalized margins.
|
|
•
|
A $6 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense below.
|
|
•
|
An $11 million increase due to new base rates implemented in April 2019.
|
|
•
|
Other Operation and Maintenance expenses decreased $27 million primarily due the following:
|
|
•
|
A $17 million decrease in transmission expenses primarily due to decreased SPP transmission services.
|
|
•
|
A $6 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 $5 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
|
•
|
Income Tax Expense decreased $6 million primarily due to an increase in amortization of Excess ADIT. This decrease was partially offset in Gross Margin above.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Net Income
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
29.4
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins (a)
|
|
(19.8
|
)
|
|
|
Off-system Sales
|
|
0.1
|
|
|
|
Transmission Revenues
|
|
(1.9
|
)
|
|
|
Other Revenues
|
|
1.8
|
|
|
|
Total Change in Gross Margin
|
|
(19.8
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
44.4
|
|
|
|
Depreciation and Amortization
|
|
(8.1
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(0.1
|
)
|
|
|
Other Income (Expense)
|
|
1.0
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.2
|
)
|
|
|
Interest Expense
|
|
(3.2
|
)
|
|
|
Total Change in Expenses and Other
|
|
33.8
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
4.7
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
48.1
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
|
•
|
Retail Margins decreased $20 million primarily due to the following:
|
|
•
|
A $20 million decrease in weather-related usage due to a 33% decrease in cooling degree days.
|
|
•
|
A $15 million decrease in weather-normalized margins.
|
|
•
|
A $6 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense below.
|
|
•
|
A $22 million increase due to new base rates implemented in April 2019 and March 2018.
|
|
•
|
Other Operation and Maintenance expenses decreased $44 million primarily due to the following:
|
|
•
|
A $22 million decrease in transmission expenses primarily due to decreased SPP transmission services.
|
|
•
|
An $11 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 $9 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
|
•
|
A $4 million decrease in distribution expenses related to vegetation management.
|
|
•
|
Depreciation and Amortization expenses increased $8 million primarily due to a higher depreciable base and new rates implemented in March 2018.
|
|
•
|
Income Tax Expense decreased $5 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
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
|
Electric Generation, Transmission and Distribution
|
|
$
|
344.6
|
|
|
$
|
395.3
|
|
|
$
|
673.8
|
|
|
$
|
730.4
|
|
|
Sales to AEP Affiliates
|
|
2.1
|
|
|
1.5
|
|
|
3.7
|
|
|
2.6
|
|
||||
|
Other Revenues
|
|
1.4
|
|
|
1.5
|
|
|
3.4
|
|
|
2.1
|
|
||||
|
TOTAL REVENUES
|
|
348.1
|
|
|
398.3
|
|
|
680.9
|
|
|
735.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel and Other Consumables Used for Electric Generation
|
|
44.8
|
|
|
58.7
|
|
|
82.8
|
|
|
107.1
|
|
||||
|
Purchased Electricity for Resale
|
|
102.5
|
|
|
113.1
|
|
|
225.4
|
|
|
235.5
|
|
||||
|
Other Operation
|
|
64.8
|
|
|
93.7
|
|
|
138.4
|
|
|
180.5
|
|
||||
|
Maintenance
|
|
26.1
|
|
|
24.0
|
|
|
48.6
|
|
|
50.9
|
|
||||
|
Depreciation and Amortization
|
|
42.8
|
|
|
41.4
|
|
|
86.3
|
|
|
78.2
|
|
||||
|
Taxes Other Than Income Taxes
|
|
10.5
|
|
|
10.2
|
|
|
21.9
|
|
|
21.8
|
|
||||
|
TOTAL EXPENSES
|
|
291.5
|
|
|
341.1
|
|
|
603.4
|
|
|
674.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
56.6
|
|
|
57.2
|
|
|
77.5
|
|
|
61.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Income (Expense)
|
|
0.8
|
|
|
(0.1
|
)
|
|
0.9
|
|
|
(0.1
|
)
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
2.1
|
|
|
2.2
|
|
|
4.2
|
|
|
4.4
|
|
||||
|
Interest Expense
|
|
(17.3
|
)
|
|
(16.3
|
)
|
|
(34.2
|
)
|
|
(31.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE
|
|
42.2
|
|
|
43.0
|
|
|
48.4
|
|
|
34.4
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense
|
|
0.3
|
|
|
6.4
|
|
|
0.3
|
|
|
5.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
$
|
41.9
|
|
|
$
|
36.6
|
|
|
$
|
48.1
|
|
|
$
|
29.4
|
|
|
The common stock of PSO is wholly-owned by Parent.
|
||||
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
41.9
|
|
|
$
|
36.6
|
|
|
$
|
48.1
|
|
|
$
|
29.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash Flow Hedges, Net of Tax of $(0.1) and $(0.1) for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(0.2) and $(0.2) for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
41.6
|
|
|
$
|
36.3
|
|
|
$
|
47.6
|
|
|
$
|
28.9
|
|
|
|
|
Common
Stock |
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2017
|
|
$
|
157.2
|
|
|
$
|
364.0
|
|
|
$
|
691.5
|
|
|
$
|
2.6
|
|
|
$
|
1,215.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(12.5
|
)
|
|
|
|
(12.5
|
)
|
||||||||
|
ASU 2018-02 Adoption
|
|
|
|
|
|
|
|
0.5
|
|
|
0.5
|
|
||||||||
|
Net Loss
|
|
|
|
|
|
(7.2
|
)
|
|
|
|
(7.2
|
)
|
||||||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2018
|
|
157.2
|
|
|
364.0
|
|
|
671.8
|
|
|
2.9
|
|
|
1,195.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(12.5
|
)
|
|
|
|
(12.5
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
|
|
36.6
|
|
|
|
|
|
36.6
|
|
|||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2018
|
|
$
|
157.2
|
|
|
$
|
364.0
|
|
|
$
|
695.9
|
|
|
$
|
2.6
|
|
|
$
|
1,219.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2018
|
|
$
|
157.2
|
|
|
$
|
364.0
|
|
|
$
|
724.7
|
|
|
$
|
2.1
|
|
|
$
|
1,248.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
(11.3
|
)
|
|
|
|
(11.3
|
)
|
||||||||
|
Net Income
|
|
|
|
|
|
6.2
|
|
|
|
|
6.2
|
|
||||||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – MARCH 31, 2019
|
|
157.2
|
|
|
364.0
|
|
|
719.6
|
|
|
1.9
|
|
|
1,242.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Income
|
|
|
|
|
|
|
|
41.9
|
|
|
|
|
|
41.9
|
|
|||||
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||
|
TOTAL COMMON SHAREHOLDER’S EQUITY – JUNE 30, 2019
|
|
$
|
157.2
|
|
|
$
|
364.0
|
|
|
$
|
761.5
|
|
|
$
|
1.6
|
|
|
$
|
1,284.3
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
|
$
|
1.4
|
|
|
$
|
2.0
|
|
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
39.3
|
|
|
32.5
|
|
||
|
Affiliated Companies
|
|
36.5
|
|
|
26.2
|
|
||
|
Miscellaneous
|
|
2.2
|
|
|
5.7
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(0.2
|
)
|
|
(0.1
|
)
|
||
|
Total Accounts Receivable
|
|
77.8
|
|
|
64.3
|
|
||
|
Fuel
|
|
10.5
|
|
|
12.3
|
|
||
|
Materials and Supplies
|
|
46.2
|
|
|
44.8
|
|
||
|
Risk Management Assets
|
|
28.0
|
|
|
10.4
|
|
||
|
Accrued Tax Benefits
|
|
19.9
|
|
|
14.7
|
|
||
|
Prepayments and Other Current Assets
|
|
10.4
|
|
|
9.4
|
|
||
|
TOTAL CURRENT ASSETS
|
|
194.2
|
|
|
157.9
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
|
Electric:
|
|
|
|
|
||||
|
Generation
|
|
1,566.5
|
|
|
1,577.0
|
|
||
|
Transmission
|
|
920.0
|
|
|
892.3
|
|
||
|
Distribution
|
|
2,625.9
|
|
|
2,572.8
|
|
||
|
Other Property, Plant and Equipment
|
|
313.5
|
|
|
303.5
|
|
||
|
Construction Work in Progress
|
|
101.7
|
|
|
94.0
|
|
||
|
Total Property, Plant and Equipment
|
|
5,527.6
|
|
|
5,439.6
|
|
||
|
Accumulated Depreciation and Amortization
|
|
1,527.2
|
|
|
1,472.9
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
4,000.4
|
|
|
3,966.7
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
|
375.9
|
|
|
369.0
|
|
||
|
Employee Benefits and Pension Assets
|
|
32.3
|
|
|
31.7
|
|
||
|
Operating Lease Assets
|
|
35.1
|
|
|
—
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
28.0
|
|
|
7.1
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
471.3
|
|
|
407.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
4,665.9
|
|
|
$
|
4,532.4
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in millions)
|
||||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
22.6
|
|
|
$
|
105.5
|
|
|
Accounts Payable:
|
|
|
|
|
|
|
||
|
General
|
|
114.8
|
|
|
126.9
|
|
||
|
Affiliated Companies
|
|
76.5
|
|
|
47.1
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
|
|
138.1
|
|
|
375.5
|
|
||
|
Risk Management Liabilities
|
|
0.3
|
|
|
1.0
|
|
||
|
Customer Deposits
|
|
59.3
|
|
|
58.6
|
|
||
|
Accrued Taxes
|
|
40.4
|
|
|
22.4
|
|
||
|
Obligations Under Operating Leases
|
|
5.9
|
|
|
—
|
|
||
|
Regulatory Liability for Over-Recovered Fuel Costs
|
|
29.1
|
|
|
20.1
|
|
||
|
Other Current Liabilities
|
|
64.2
|
|
|
64.5
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
551.2
|
|
|
821.6
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
|
|
1,248.2
|
|
|
911.5
|
|
||
|
Deferred Income Taxes
|
|
615.3
|
|
|
607.8
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
860.2
|
|
|
864.7
|
|
||
|
Asset Retirement Obligations
|
|
48.5
|
|
|
46.3
|
|
||
|
Obligations Under Operating Leases
|
|
29.3
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
28.9
|
|
|
32.5
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
2,830.4
|
|
|
2,462.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
3,381.6
|
|
|
3,284.4
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
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
|
|
157.2
|
|
|
157.2
|
|
||
|
Paid-in Capital
|
|
364.0
|
|
|
364.0
|
|
||
|
Retained Earnings
|
|
761.5
|
|
|
724.7
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
1.6
|
|
|
2.1
|
|
||
|
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
1,284.3
|
|
|
1,248.0
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
4,665.9
|
|
|
$
|
4,532.4
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
48.1
|
|
|
$
|
29.4
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
|
Depreciation and Amortization
|
|
86.3
|
|
|
78.2
|
|
||
|
Deferred Income Taxes
|
|
(9.0
|
)
|
|
(6.5
|
)
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(0.7
|
)
|
|
0.1
|
|
||
|
Mark-to-Market of Risk Management Contracts
|
|
(18.3
|
)
|
|
(18.1
|
)
|
||
|
Property Taxes
|
|
(19.2
|
)
|
|
(19.2
|
)
|
||
|
Deferred Fuel Over/Under-Recovery, Net
|
|
9.0
|
|
|
29.9
|
|
||
|
Change in Other Noncurrent Assets
|
|
4.6
|
|
|
1.4
|
|
||
|
Change in Other Noncurrent Liabilities
|
|
(2.4
|
)
|
|
14.8
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
|
Accounts Receivable, Net
|
|
(12.6
|
)
|
|
(6.4
|
)
|
||
|
Fuel, Materials and Supplies
|
|
0.4
|
|
|
(0.8
|
)
|
||
|
Accounts Payable
|
|
28.5
|
|
|
23.0
|
|
||
|
Accrued Taxes, Net
|
|
12.8
|
|
|
30.0
|
|
||
|
Other Current Assets
|
|
(1.6
|
)
|
|
0.5
|
|
||
|
Other Current Liabilities
|
|
3.3
|
|
|
3.0
|
|
||
|
Net Cash Flows from Operating Activities
|
|
129.2
|
|
|
159.3
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
|
Construction Expenditures
|
|
(132.7
|
)
|
|
(104.2
|
)
|
||
|
Other Investing Activities
|
|
1.1
|
|
|
2.7
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(131.6
|
)
|
|
(101.5
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
349.9
|
|
|
—
|
|
||
|
Change in Advances from Affiliates, Net
|
|
(82.9
|
)
|
|
(31.2
|
)
|
||
|
Retirement of Long-term Debt – Nonaffiliated
|
|
(250.2
|
)
|
|
(0.2
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(1.5
|
)
|
|
(1.8
|
)
|
||
|
Dividends Paid on Common Stock
|
|
(11.3
|
)
|
|
(25.0
|
)
|
||
|
Other Financing Activities
|
|
(2.2
|
)
|
|
0.4
|
|
||
|
Net Cash Flows from (Used for) Financing Activities
|
|
1.8
|
|
|
(57.8
|
)
|
||
|
|
|
|
|
|
||||
|
Net Decrease in Cash and Cash Equivalents
|
|
(0.6
|
)
|
|
—
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
|
2.0
|
|
|
1.6
|
|
||
|
Cash and Cash Equivalents at End of Period
|
|
$
|
1.4
|
|
|
$
|
1.6
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
30.9
|
|
|
$
|
31.7
|
|
|
Net Cash Paid (Received) for Income Taxes
|
|
11.1
|
|
|
(1.8
|
)
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
2.3
|
|
|
1.8
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
19.7
|
|
|
25.9
|
|
||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in millions of KWhs)
|
||||||||||
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
1,297
|
|
|
1,606
|
|
|
2,825
|
|
|
3,164
|
|
|
Commercial
|
1,411
|
|
|
1,563
|
|
|
2,684
|
|
|
2,873
|
|
|
Industrial
|
1,356
|
|
|
1,490
|
|
|
2,606
|
|
|
2,667
|
|
|
Miscellaneous
|
20
|
|
|
21
|
|
|
40
|
|
|
40
|
|
|
Total Retail (a)
|
4,084
|
|
|
4,680
|
|
|
8,155
|
|
|
8,744
|
|
|
|
|
|
|
|
|
|
|
||||
|
Wholesale
|
1,507
|
|
|
1,563
|
|
|
3,486
|
|
|
3,471
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total KWhs
|
5,591
|
|
|
6,243
|
|
|
11,641
|
|
|
12,215
|
|
|
(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
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
|
Actual – Heating (a)
|
24
|
|
|
55
|
|
|
732
|
|
|
784
|
|
|
Normal – Heating (b)
|
26
|
|
|
25
|
|
|
724
|
|
|
732
|
|
|
|
|
|
|
|
|
|
|
||||
|
Actual – Cooling (c)
|
691
|
|
|
895
|
|
|
711
|
|
|
955
|
|
|
Normal – Cooling (b)
|
740
|
|
|
733
|
|
|
779
|
|
|
771
|
|
|
(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 Second Quarter of 2018 to Second Quarter of 2019
|
||||
|
Earnings Attributable to SWEPCo Common Shareholder
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Second Quarter of 2018
|
|
$
|
37.6
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins (a)
|
|
(35.1
|
)
|
|
|
Off-system Sales
|
|
(0.5
|
)
|
|
|
Transmission Revenues
|
|
(29.1
|
)
|
|
|
Total Change in Gross Margin
|
|
(64.7
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
30.4
|
|
|
|
Depreciation and Amortization
|
|
(3.2
|
)
|
|
|
Interest Income
|
|
0.1
|
|
|
|
Allowance for Equity Funds Used During Construction
|
|
0.2
|
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.1
|
)
|
|
|
Interest Expense
|
|
0.4
|
|
|
|
Total Change in Expenses and Other
|
|
27.8
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
5.4
|
|
|
|
Equity Earnings of Unconsolidated Subsidiary
|
|
0.1
|
|
|
|
|
|
|
|
|
|
Second Quarter of 2019
|
|
$
|
6.2
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
|
•
|
Retail Margins decreased $35 million primarily due to the following:
|
|
•
|
A $21 million decrease in weather-normalized margins.
|
|
•
|
A $16 million decrease in weather-related usage primarily due to a 23% decrease in cooling degree days and a 56% decrease in heating degree days.
|
|
•
|
A $4 million increase due to customer refunds related to Tax Reform. This increase was partially offset in Income Tax Expense below.
|
|
•
|
Transmission Revenues decreased $29 million primarily due to a $40 million decrease in the annual SPP formula rate true-ups, partially offset by an $11 million 2018 provision for refund on certain transmission assets that management believes should not have been included in the SPP formula rate. This decrease was partially offset by a decrease in transmission expenses in SPP.
|
|
•
|
Other Operation and Maintenance expenses decreased $30 million primarily due to the following:
|
|
•
|
A $23 million decrease in SPP expenses primarily due to decreases in Transmission Revenues above.
|
|
•
|
A $12 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
|
•
|
An $8 million increase in overhead line expenses primarily related to storm restoration.
|
|
•
|
Depreciation and Amortization expenses increased $3 million primarily due to higher depreciation rates implemented in the third quarter of 2018 and a higher depreciable base.
|
|
•
|
Income Tax Expense decreased $5 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.
|
|
Reconciliation of Six Months Ended June 30, 2018 to Six Months Ended June 30, 2019
|
||||
|
Earnings Attributable to SWEPCo Common Shareholder
|
||||
|
(in millions)
|
||||
|
|
|
|
||
|
Six Months Ended June 30, 2018
|
|
$
|
49.4
|
|
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
|
Retail Margins (a)
|
|
(29.0
|
)
|
|
|
Off-system Sales
|
|
0.1
|
|
|
|
Transmission Revenues
|
|
(30.8
|
)
|
|
|
Other Revenues
|
|
0.1
|
|
|
|
Total Change in Gross Margin
|
|
(59.6
|
)
|
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
|
Other Operation and Maintenance
|
|
42.8
|
|
|
|
Depreciation and Amortization
|
|
(7.9
|
)
|
|
|
Taxes Other Than Income Taxes
|
|
(0.3
|
)
|
|
|
Interest Income
|
|
(1.0
|
)
|
|
|
Allowance for Equity Funds Used During Construction
|
|
(0.3
|
)
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.3
|
)
|
|
|
Interest Expense
|
|
2.9
|
|
|
|
Total Change in Expenses and Other
|
|
35.9
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
7.6
|
|
|
|
Equity Earnings of Unconsolidated Subsidiary
|
|
0.3
|
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
0.4
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
$
|
34.0
|
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
|
•
|
Retail Margins decreased $29 million primarily due to the following:
|
|
•
|
A $19 million decrease in weather-related usage primarily due to a 26% decrease in cooling degree days and a 7% decrease in heating degree days.
|
|
•
|
A $17 million decrease in weather-normalized margins.
|
|
•
|
A $7 million increase due to customer refunds related to Tax Reform. This increase was partially offset in Income Tax Expense below.
|
|
•
|
Transmission Revenues decreased $31 million primarily due to a $40 million decrease in the annual SPP formula rate true-ups, partially offset by an $11 million 2018 provision for refund on certain transmission assets that management believes should not have been included in the SPP formula rate. This decrease was partially offset by a decrease in transmission expenses in SPP.
|
|
•
|
Other Operation and Maintenance expenses decreased $43 million primarily due to the following:
|
|
•
|
A $25 million decrease in SPP expenses primarily due to decreases in Transmission Revenues above.
|
|
•
|
A $22 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
|
•
|
A $7 million increase in overhead line expenses primarily related to storm restoration.
|
|
•
|
Depreciation and Amortization expenses increased $8 million primarily due to higher depreciation rates implemented in the third quarter of 2018 and a higher depreciable base.
|
|
•
|
Interest Expense decreased $3 million primarily due to lower interest rates on outstanding long-term debt.
|
|
•
|
Income Tax Expense decreased $8 million primarily due to an increase in amortization of Excess ADIT not subject to normalization requirements, partially offset by an increase in pretax book income. This decrease was partially offset in Gross Margin above.
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
|
Electric Generation, Transmission and Distribution
|
|
$
|
394.0
|
|
|
$
|
451.4
|
|
|
$
|
808.3
|
|
|
$
|
864.4
|
|
|
Sales to AEP Affiliates
|
|
6.4
|
|
|
5.4
|
|
|
12.8
|
|
|
11.5
|
|
||||
|
Provision for Refund – Affiliated
|
|
(25.2
|
)
|
|
—
|
|
|
(25.2
|
)
|
|
—
|
|
||||
|
Other Revenues
|
|
0.3
|
|
|
0.3
|
|
|
0.7
|
|
|
0.6
|
|
||||
|
TOTAL REVENUES
|
|
375.5
|
|
|
457.1
|
|
|
796.6
|
|
|
876.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuel and Other Consumables Used for Electric Generation
|
|
117.9
|
|
|
114.5
|
|
|
251.4
|
|
|
241.3
|
|
||||
|
Purchased Electricity for Resale
|
|
33.1
|
|
|
53.4
|
|
|
65.7
|
|
|
96.1
|
|
||||
|
Other Operation
|
|
65.9
|
|
|
98.0
|
|
|
150.5
|
|
|
192.9
|
|
||||
|
Maintenance
|
|
39.3
|
|
|
37.6
|
|
|
68.2
|
|
|
68.6
|
|
||||
|
Depreciation and Amortization
|
|
61.8
|
|
|
58.6
|
|
|
123.9
|
|
|
116.0
|
|
||||
|
Taxes Other Than Income Taxes
|
|
24.5
|
|
|
24.5
|
|
|
49.8
|
|
|
49.5
|
|
||||
|
TOTAL EXPENSES
|
|
342.5
|
|
|
386.6
|
|
|
709.5
|
|
|
764.4
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME
|
|
33.0
|
|
|
70.5
|
|
|
87.1
|
|
|
112.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest Income
|
|
0.7
|
|
|
0.6
|
|
|
1.4
|
|
|
2.4
|
|
||||
|
Allowance for Equity Funds Used During Construction
|
|
1.1
|
|
|
0.9
|
|
|
2.9
|
|
|
3.2
|
|
||||
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
2.2
|
|
|
2.3
|
|
|
4.3
|
|
|
4.6
|
|
||||
|
Interest Expense
|
|
(30.5
|
)
|
|
(30.9
|
)
|
|
(60.2
|
)
|
|
(63.1
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
|
6.5
|
|
|
43.4
|
|
|
35.5
|
|
|
59.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Expense
|
|
—
|
|
|
5.4
|
|
|
0.7
|
|
|
8.3
|
|
||||
|
Equity Earnings of Unconsolidated Subsidiary
|
|
0.8
|
|
|
0.7
|
|
|
1.5
|
|
|
1.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME
|
|
7.3
|
|
|
38.7
|
|
|
36.3
|
|
|
52.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income Attributable to Noncontrolling Interest
|
|
1.1
|
|
|
1.1
|
|
|
2.3
|
|
|
2.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
EARNINGS ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER
|
|
$
|
6.2
|
|
|
$
|
37.6
|
|
|
$
|
34.0
|
|
|
$
|
49.4
|
|
|
The common stock of SWEPCo is wholly-owned by Parent.
|
||||
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income
|
|
$
|
7.3
|
|
|
$
|
38.7
|
|
|
$
|
36.3
|
|
|
$
|
52.1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash Flow Hedges, Net of Tax of $0.1 and $0.1 for the Three Months Ended June 30, 2019 and 2018, Respectively, and $0.2 and $0.2 for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
0.4
|
|
|
0.5
|
|
|
0.8
|
|
|
0.9
|
|
||||
|
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $(0.1) and $(0.1) for the Three Months Ended June 30, 2019 and 2018, Respectively, and $(0.2) and $(0.2) for the Six Months Ended June 30, 2019 and 2018, Respectively
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL OTHER COMPREHENSIVE INCOME
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME
|
|
7.4
|
|
|
38.8
|
|
|
36.5
|
|
|
52.3
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Comprehensive Income Attributable to Noncontrolling Interest
|
|
1.1
|
|
|
1.1
|
|
|
2.3
|
|
|
2.7
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER
|
|
$
|
6.3
|
|
|
$
|
37.7
|
|
|
$
|
34.2
|
|
|
$
|
49.6
|
|
|
|
SWEPCo Common Shareholder
|
|
|
|
|
||||||||||||||||||
|
|
Common
Stock |
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Noncontrolling
Interest |
|
Total
|
||||||||||||
|
TOTAL EQUITY – DECEMBER 31, 2017
|
$
|
135.7
|
|
|
$
|
676.6
|
|
|
$
|
1,426.6
|
|
|
$
|
(4.0
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
2,234.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock Dividends
|
|
|
|
|
(20.0
|
)
|
|
|
|
|
|
(20.0
|
)
|
||||||||||
|
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
||||||||||
|
ASU 2018-02 Adoption
|
|
|
|
|
(0.4
|
)
|
|
(0.9
|
)
|
|
|
|
(1.3
|
)
|
|||||||||
|
Net Income
|
|
|
|
|
11.8
|
|
|
|
|
1.6
|
|
|
13.4
|
|
|||||||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
0.1
|
|
|
|
|
0.1
|
|
||||||||||
|
TOTAL EQUITY – MARCH 31, 2018
|
135.7
|
|
|
676.6
|
|
|
1,418.0
|
|
|
(4.8
|
)
|
|
0.4
|
|
|
2,225.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock Dividends
|
|
|
|
|
(20.0
|
)
|
|
|
|
|
|
(20.0
|
)
|
||||||||||
|
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||||||
|
Net Income
|
|
|
|
|
|
|
37.6
|
|
|
|
|
|
1.1
|
|
|
38.7
|
|
||||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
0.1
|
|
||||||
|
TOTAL EQUITY – JUNE 30, 2018
|
$
|
135.7
|
|
|
$
|
676.6
|
|
|
$
|
1,435.6
|
|
|
$
|
(4.7
|
)
|
|
$
|
0.5
|
|
|
$
|
2,243.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
TOTAL EQUITY – DECEMBER 31, 2018
|
$
|
135.7
|
|
|
$
|
676.6
|
|
|
$
|
1,508.4
|
|
|
$
|
(5.4
|
)
|
|
$
|
0.3
|
|
|
$
|
2,315.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock Dividends
|
|
|
|
|
(18.7
|
)
|
|
|
|
|
|
(18.7
|
)
|
||||||||||
|
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
(1.1
|
)
|
|
(1.1
|
)
|
||||||||||
|
Net Income
|
|
|
|
|
27.8
|
|
|
|
|
1.2
|
|
|
29.0
|
|
|||||||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
0.1
|
|
|
|
|
0.1
|
|
||||||||||
|
TOTAL EQUITY – MARCH 31, 2019
|
135.7
|
|
|
676.6
|
|
|
1,517.5
|
|
|
(5.3
|
)
|
|
0.4
|
|
|
2,324.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock Dividends
|
|
|
|
|
|
|
(18.8
|
)
|
|
|
|
|
|
|
|
(18.8
|
)
|
||||||
|
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.1
|
)
|
|
(1.1
|
)
|
||||||
|
Net Income
|
|
|
|
|
|
|
6.2
|
|
|
|
|
|
1.1
|
|
|
7.3
|
|
||||||
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
0.1
|
|
||||||
|
TOTAL EQUITY – JUNE 30, 2019
|
$
|
135.7
|
|
|
$
|
676.6
|
|
|
$
|
1,504.9
|
|
|
$
|
(5.2
|
)
|
|
$
|
0.4
|
|
|
$
|
2,312.4
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
(June 30, 2019 and December 31, 2018 Amounts Include $22.2 and $22, Respectively, Related to Sabine) |
|
$
|
24.0
|
|
|
$
|
24.5
|
|
|
Advances to Affiliates
|
|
2.0
|
|
|
83.4
|
|
||
|
Accounts Receivable:
|
|
|
|
|
||||
|
Customers
|
|
31.2
|
|
|
24.5
|
|
||
|
Affiliated Companies
|
|
56.5
|
|
|
28.8
|
|
||
|
Miscellaneous
|
|
15.6
|
|
|
20.2
|
|
||
|
Allowance for Uncollectible Accounts
|
|
(1.8
|
)
|
|
(0.7
|
)
|
||
|
Total Accounts Receivable
|
|
101.5
|
|
|
72.8
|
|
||
|
Fuel
(June 30, 2019 and December 31, 2018 Amounts Include $34.9 and $35.7, Respectively, Related to Sabine) |
|
136.6
|
|
|
120.5
|
|
||
|
Materials and Supplies
|
|
70.7
|
|
|
67.5
|
|
||
|
Risk Management Assets
|
|
12.3
|
|
|
4.8
|
|
||
|
Regulatory Asset for Under-Recovered Fuel Costs
|
|
14.4
|
|
|
18.8
|
|
||
|
Prepayments and Other Current Assets
|
|
23.0
|
|
|
22.2
|
|
||
|
TOTAL CURRENT ASSETS
|
|
384.5
|
|
|
414.5
|
|
||
|
|
|
|
|
|
||||
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
|
Electric:
|
|
|
|
|
||||
|
Generation
|
|
4,670.4
|
|
|
4,672.6
|
|
||
|
Transmission
|
|
1,960.0
|
|
|
1,866.9
|
|
||
|
Distribution
|
|
2,222.0
|
|
|
2,178.6
|
|
||
|
Other Property, Plant and Equipment
(June 30, 2019 and December 31, 2018 Amounts Include $210.3 and $276.9, Respectively, Related to Sabine) |
|
698.8
|
|
|
762.7
|
|
||
|
Construction Work in Progress
|
|
209.4
|
|
|
199.3
|
|
||
|
Total Property, Plant and Equipment
|
|
9,760.6
|
|
|
9,680.1
|
|
||
|
Accumulated Depreciation and Amortization
(June 30, 2019 and December 31, 2018 Amounts Include $101.6 and $174.6, Respectively, Related to Sabine) |
|
2,805.2
|
|
|
2,808.3
|
|
||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
6,955.4
|
|
|
6,871.8
|
|
||
|
|
|
|
|
|
||||
|
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
|
224.0
|
|
|
230.8
|
|
||
|
Deferred Charges and Other Noncurrent Assets
|
|
179.5
|
|
|
111.2
|
|
||
|
TOTAL OTHER NONCURRENT ASSETS
|
|
403.5
|
|
|
342.0
|
|
||
|
|
|
|
|
|
||||
|
TOTAL ASSETS
|
|
$
|
7,743.4
|
|
|
$
|
7,628.3
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in millions)
|
||||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Advances from Affiliates
|
|
$
|
55.3
|
|
|
$
|
—
|
|
|
Accounts Payable:
|
|
|
|
|
||||
|
General
|
|
108.8
|
|
|
129.1
|
|
||
|
Affiliated Companies
|
|
89.1
|
|
|
64.2
|
|
||
|
Long-term Debt Due Within One Year – Nonaffiliated
|
|
121.2
|
|
|
59.7
|
|
||
|
Risk Management Liabilities
|
|
1.5
|
|
|
0.4
|
|
||
|
Customer Deposits
|
|
65.5
|
|
|
64.5
|
|
||
|
Accrued Taxes
|
|
89.2
|
|
|
42.8
|
|
||
|
Accrued Interest
|
|
33.8
|
|
|
34.7
|
|
||
|
Obligations Under Operating Leases
|
|
6.0
|
|
|
—
|
|
||
|
Regulatory Liability for Over-Recovered Fuel Costs
|
|
14.8
|
|
|
11.1
|
|
||
|
Other Current Liabilities
|
|
123.7
|
|
|
106.4
|
|
||
|
TOTAL CURRENT LIABILITIES
|
|
708.9
|
|
|
512.9
|
|
||
|
|
|
|
|
|
||||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-term Debt – Nonaffiliated
|
|
2,536.9
|
|
|
2,653.7
|
|
||
|
Long-term Risk Management Liabilities
|
|
2.4
|
|
|
2.2
|
|
||
|
Deferred Income Taxes
|
|
913.3
|
|
|
902.8
|
|
||
|
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
921.6
|
|
|
923.0
|
|
||
|
Asset Retirement Obligations
|
|
198.4
|
|
|
191.3
|
|
||
|
Employee Benefits and Pension Obligations
|
|
24.3
|
|
|
24.8
|
|
||
|
Obligations Under Finance Leases
|
|
49.7
|
|
|
50.6
|
|
||
|
Obligations Under Operating Leases
|
|
31.5
|
|
|
—
|
|
||
|
Deferred Credits and Other Noncurrent Liabilities
|
|
44.0
|
|
|
51.4
|
|
||
|
TOTAL NONCURRENT LIABILITIES
|
|
4,722.1
|
|
|
4,799.8
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES
|
|
5,431.0
|
|
|
5,312.7
|
|
||
|
|
|
|
|
|
||||
|
Rate Matters (Note 4)
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
EQUITY
|
|
|
|
|
||||
|
Common Stock – Par Value – $18 Per Share:
|
|
|
|
|
||||
|
Authorized – 7,600,000 Shares
|
|
|
|
|
||||
|
Outstanding – 7,536,640 Shares
|
|
135.7
|
|
|
135.7
|
|
||
|
Paid-in Capital
|
|
676.6
|
|
|
676.6
|
|
||
|
Retained Earnings
|
|
1,504.9
|
|
|
1,508.4
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
|
(5.2
|
)
|
|
(5.4
|
)
|
||
|
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,312.0
|
|
|
2,315.3
|
|
||
|
|
|
|
|
|
||||
|
Noncontrolling Interest
|
|
0.4
|
|
|
0.3
|
|
||
|
|
|
|
|
|
||||
|
TOTAL EQUITY
|
|
2,312.4
|
|
|
2,315.6
|
|
||
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
7,743.4
|
|
|
$
|
7,628.3
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
|
Net Income
|
|
$
|
36.3
|
|
|
$
|
52.1
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
|
Depreciation and Amortization
|
|
123.9
|
|
|
116.0
|
|
||
|
Deferred Income Taxes
|
|
(10.1
|
)
|
|
0.4
|
|
||
|
Allowance for Equity Funds Used During Construction
|
|
(2.9
|
)
|
|
(3.2
|
)
|
||
|
Mark-to-Market of Risk Management Contracts
|
|
(6.2
|
)
|
|
1.1
|
|
||
|
Property Taxes
|
|
(32.2
|
)
|
|
(31.6
|
)
|
||
|
Deferred Fuel Over/Under-Recovery, Net
|
|
8.2
|
|
|
0.8
|
|
||
|
Change in Other Noncurrent Assets
|
|
2.9
|
|
|
(7.6
|
)
|
||
|
Change in Other Noncurrent Liabilities
|
|
2.0
|
|
|
45.4
|
|
||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
||||
|
Accounts Receivable, Net
|
|
(26.1
|
)
|
|
22.1
|
|
||
|
Fuel, Materials and Supplies
|
|
(19.3
|
)
|
|
1.2
|
|
||
|
Accounts Payable
|
|
5.5
|
|
|
(17.3
|
)
|
||
|
Accrued Taxes, Net
|
|
47.7
|
|
|
31.8
|
|
||
|
Other Current Assets
|
|
(1.4
|
)
|
|
4.5
|
|
||
|
Other Current Liabilities
|
|
23.4
|
|
|
10.5
|
|
||
|
Net Cash Flows from Operating Activities
|
|
151.7
|
|
|
226.2
|
|
||
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES
|
|
|
|
|
||||
|
Construction Expenditures
|
|
(185.2
|
)
|
|
(244.6
|
)
|
||
|
Change in Advances to Affiliates, Net
|
|
81.4
|
|
|
—
|
|
||
|
Other Investing Activities
|
|
(2.2
|
)
|
|
0.6
|
|
||
|
Net Cash Flows Used for Investing Activities
|
|
(106.0
|
)
|
|
(244.0
|
)
|
||
|
|
|
|
|
|
||||
|
FINANCING ACTIVITIES
|
|
|
|
|
||||
|
Issuance of Long-term Debt – Nonaffiliated
|
|
—
|
|
|
444.6
|
|
||
|
Change in Short-term Debt – Nonaffiliated
|
|
—
|
|
|
3.2
|
|
||
|
Change in Advances from Affiliates, Net
|
|
55.3
|
|
|
1.2
|
|
||
|
Retirement of Long-term Debt – Nonaffiliated
|
|
(56.6
|
)
|
|
(383.5
|
)
|
||
|
Principal Payments for Finance Lease Obligations
|
|
(5.5
|
)
|
|
(5.7
|
)
|
||
|
Dividends Paid on Common Stock
|
|
(37.5
|
)
|
|
(40.0
|
)
|
||
|
Dividends Paid on Common Stock – Nonaffiliated
|
|
(2.2
|
)
|
|
(1.8
|
)
|
||
|
Other Financing Activities
|
|
0.3
|
|
|
0.3
|
|
||
|
Net Cash Flows from (Used for) Financing Activities
|
|
(46.2
|
)
|
|
18.3
|
|
||
|
|
|
|
|
|
||||
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
(0.5
|
)
|
|
0.5
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
|
24.5
|
|
|
1.6
|
|
||
|
Cash and Cash Equivalents at End of Period
|
|
$
|
24.0
|
|
|
$
|
2.1
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
||||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
57.1
|
|
|
$
|
59.7
|
|
|
Net Cash Paid for Income Taxes
|
|
6.2
|
|
|
16.3
|
|
||
|
Noncash Acquisitions Under Finance Leases
|
|
2.6
|
|
|
2.7
|
|
||
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
40.9
|
|
|
39.5
|
|
||
|
Note
|
|
Registrant
|
|
Page
Number
|
|
|
|
|
|
|
|
Significant Accounting Matters
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
|
New Accounting Pronouncements
|
|
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 June 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
|
|
(in millions, except per share data)
|
||||||||||||||
|
|
|
|
|
$/share
|
|
|
|
$/share
|
|||||||
|
Earnings Attributable to AEP Common Shareholders
|
$
|
461.3
|
|
|
|
|
|
$
|
528.4
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted Average Number of Basic Shares Outstanding
|
493.6
|
|
|
$
|
0.93
|
|
|
492.7
|
|
|
$
|
1.07
|
|
||
|
Weighted Average Dilutive Effect of Stock-Based Awards
|
1.8
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
||||
|
Weighted Average Number of Diluted Shares Outstanding
|
495.4
|
|
|
$
|
0.93
|
|
|
493.5
|
|
|
$
|
1.07
|
|
||
|
|
Six Months Ended June 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
|
|
(in millions, except per share data)
|
||||||||||||||
|
|
|
|
|
$/share
|
|
|
|
$/share
|
|||||||
|
Earnings Attributable to AEP Common Shareholders
|
$
|
1,034.1
|
|
|
|
|
$
|
982.8
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted Average Number of Basic Shares Outstanding
|
493.4
|
|
|
$
|
2.10
|
|
|
492.5
|
|
|
$
|
2.00
|
|
||
|
Weighted Average Dilutive Effect of Stock-Based Awards
|
1.5
|
|
|
(0.01
|
)
|
|
0.8
|
|
|
(0.01
|
)
|
||||
|
Weighted Average Number of Diluted Shares Outstanding
|
494.9
|
|
|
$
|
2.09
|
|
|
493.3
|
|
|
$
|
1.99
|
|
||
|
|
|
June 30, 2019
|
||||||||||||||
|
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
OPCo
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Cash and Cash Equivalents
|
|
$
|
210.5
|
|
|
$
|
0.1
|
|
|
$
|
2.3
|
|
|
$
|
2.7
|
|
|
Restricted Cash
|
|
179.1
|
|
|
125.4
|
|
|
25.4
|
|
|
28.2
|
|
||||
|
Total Cash, Cash Equivalents and Restricted Cash
|
|
$
|
389.6
|
|
|
$
|
125.5
|
|
|
$
|
27.7
|
|
|
$
|
30.9
|
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
OPCo
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Cash and Cash Equivalents
|
|
$
|
234.1
|
|
|
$
|
3.1
|
|
|
$
|
4.2
|
|
|
$
|
4.9
|
|
|
Restricted Cash
|
|
210.0
|
|
|
156.7
|
|
|
25.6
|
|
|
27.6
|
|
||||
|
Total Cash, Cash Equivalents and Restricted Cash
|
|
$
|
444.1
|
|
|
$
|
159.8
|
|
|
$
|
29.8
|
|
|
$
|
32.5
|
|
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||||||||||||||
|
|
|
As Reported
|
|
Adjustments
|
|
As Adjusted
|
|
As Reported
|
|
Adjustments
|
|
As Adjusted
|
||||||||||||
|
|
|
(in millions)
|
|
(in millions)
|
||||||||||||||||||||
|
TOTAL REVENUES
|
|
$
|
183.8
|
|
|
$
|
16.3
|
|
|
$
|
200.1
|
|
|
$
|
377.3
|
|
|
$
|
14.5
|
|
|
$
|
391.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation and Amortization
|
|
32.4
|
|
|
(0.1
|
)
|
|
32.3
|
|
|
63.0
|
|
|
(0.4
|
)
|
|
62.6
|
|
||||||
|
TOTAL EXPENSES
|
|
89.7
|
|
|
(0.1
|
)
|
|
89.6
|
|
|
170.6
|
|
|
(0.4
|
)
|
|
170.2
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
OPERATING INCOME
|
|
94.1
|
|
|
16.4
|
|
|
110.5
|
|
|
206.7
|
|
|
14.9
|
|
|
221.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Allowance for Equity Funds Used During Construction
|
|
16.3
|
|
|
(0.5
|
)
|
|
15.8
|
|
|
31.6
|
|
|
(0.9
|
)
|
|
30.7
|
|
||||||
|
Interest Expense
|
|
(20.3
|
)
|
|
(0.3
|
)
|
|
(20.6
|
)
|
|
(40.2
|
)
|
|
(0.7
|
)
|
|
(40.9
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
INCOME BEFORE INCOME TAX EXPENSE
|
|
90.5
|
|
|
15.6
|
|
|
106.1
|
|
|
198.9
|
|
|
13.3
|
|
|
212.2
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Income Tax Expense
|
|
20.0
|
|
|
4.1
|
|
|
24.1
|
|
|
42.5
|
|
|
3.6
|
|
|
46.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NET INCOME
|
|
$
|
70.5
|
|
|
$
|
11.5
|
|
|
$
|
82.0
|
|
|
$
|
156.4
|
|
|
$
|
9.7
|
|
|
$
|
166.1
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
|
|
|
As Reported
|
|
Adjustments
|
|
As Adjusted
|
||||||
|
|
|
(in millions)
|
||||||||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Net Income
|
|
$
|
156.4
|
|
|
$
|
9.7
|
|
|
$
|
166.1
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||||||
|
Depreciation and Amortization
|
|
63.0
|
|
|
(0.4
|
)
|
|
62.6
|
|
|||
|
Deferred Income Taxes
|
|
50.2
|
|
|
(0.3
|
)
|
|
49.9
|
|
|||
|
Allowance for Equity Funds Used During Construction
|
|
(31.6
|
)
|
|
0.9
|
|
|
(30.7
|
)
|
|||
|
Change in Other Noncurrent Assets
|
|
(7.0
|
)
|
|
0.3
|
|
|
(6.7
|
)
|
|||
|
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
|
|||||
|
Accounts Receivable, Net
|
|
8.4
|
|
|
0.1
|
|
|
8.5
|
|
|||
|
Accounts Payable
|
|
13.7
|
|
|
(10.3
|
)
|
|
3.4
|
|
|||
|
Net Cash Flows from Operating Activities
|
|
246.1
|
|
|
—
|
|
|
246.1
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
||||
|
Net Cash Flows Used for Investing Activities
|
|
(774.7
|
)
|
|
—
|
|
|
(774.7
|
)
|
|||
|
|
|
|
|
|
|
|
||||||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
||||
|
Net Cash Flows from Financing Activities
|
|
528.6
|
|
|
—
|
|
|
528.6
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Net Change in Cash and Cash Equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Cash and Cash Equivalents at Beginning of Period
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Cash and Cash Equivalents at End of Period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||||||
|
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
42.7
|
|
|
$
|
0.4
|
|
|
$
|
43.1
|
|
|
Construction Expenditures Included in Current Liabilities as of June 30,
|
|
234.7
|
|
|
6.4
|
|
|
241.1
|
|
|||
|
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 June 30, 2019
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
(52.1
|
)
|
|
$
|
(12.4
|
)
|
|
$
|
(86.2
|
)
|
|
$
|
(150.7
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
(91.9
|
)
|
|
(3.7
|
)
|
(b)
|
—
|
|
|
(95.6
|
)
|
||||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
|
Purchased Electricity for Resale (a)
|
|
21.2
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
||||
|
Interest Expense (a)
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
||||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
3.0
|
|
||||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
21.2
|
|
|
0.3
|
|
|
(1.7
|
)
|
|
19.8
|
|
||||
|
Income Tax (Expense) Benefit
|
|
4.4
|
|
|
0.1
|
|
|
(0.3
|
)
|
|
4.2
|
|
||||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
16.8
|
|
|
0.2
|
|
|
(1.4
|
)
|
|
15.6
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(75.1
|
)
|
|
(3.5
|
)
|
|
(1.4
|
)
|
|
(80.0
|
)
|
||||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(127.2
|
)
|
|
$
|
(15.9
|
)
|
|
$
|
(87.6
|
)
|
|
$
|
(230.7
|
)
|
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
|
Three Months Ended June 30, 2018
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
(32.0
|
)
|
|
$
|
(15.5
|
)
|
|
$
|
(47.9
|
)
|
|
$
|
(95.4
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
||||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
|
Purchased Electricity for Resale (a)
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
||||
|
Interest Expense (a)
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
||||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
3.2
|
|
||||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(4.7
|
)
|
|
0.2
|
|
|
(1.5
|
)
|
|
(6.0
|
)
|
||||
|
Income Tax (Expense) Benefit
|
|
(0.9
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
(1.2
|
)
|
||||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(3.8
|
)
|
|
0.2
|
|
|
(1.2
|
)
|
|
(4.8
|
)
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
1.6
|
|
|
0.2
|
|
|
(1.2
|
)
|
|
0.6
|
|
||||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(30.4
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
(49.1
|
)
|
|
$
|
(94.8
|
)
|
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
|
Six Months Ended June 30, 2019
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
(23.0
|
)
|
|
$
|
(12.6
|
)
|
|
$
|
(84.8
|
)
|
|
$
|
(120.4
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
(130.7
|
)
|
|
(3.7
|
)
|
(b)
|
—
|
|
|
(134.4
|
)
|
||||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
|
Purchased Electricity for Resale (a)
|
|
33.5
|
|
|
—
|
|
|
—
|
|
|
33.5
|
|
||||
|
Interest Expense (a)
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(9.5
|
)
|
|
(9.5
|
)
|
||||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
6.0
|
|
|
6.0
|
|
||||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
33.5
|
|
|
0.5
|
|
|
(3.5
|
)
|
|
30.5
|
|
||||
|
Income Tax (Expense) Benefit
|
|
7.0
|
|
|
0.1
|
|
|
(0.7
|
)
|
|
6.4
|
|
||||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
26.5
|
|
|
0.4
|
|
|
(2.8
|
)
|
|
24.1
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(104.2
|
)
|
|
(3.3
|
)
|
|
(2.8
|
)
|
|
(110.3
|
)
|
||||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(127.2
|
)
|
|
$
|
(15.9
|
)
|
|
$
|
(87.6
|
)
|
|
$
|
(230.7
|
)
|
|
|
|
Cash Flow Hedges
|
|
Securities
|
|
|
|
|
||||||||||||
|
|
|
|
|
Interest
|
|
Available
|
|
Pension
|
|
|
||||||||||
|
Six Months Ended June 30, 2018
|
|
Commodity
|
|
Rate
|
|
for Sale
|
|
and OPEB
|
|
Total
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
(28.4
|
)
|
|
$
|
(13.0
|
)
|
|
$
|
11.9
|
|
|
$
|
(38.3
|
)
|
|
$
|
(67.8
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
18.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.2
|
|
|||||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Purchased Electricity for Resale (a)
|
|
(17.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.8
|
)
|
|||||
|
Interest Expense (a)
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.7
|
)
|
|
(9.7
|
)
|
|||||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|
6.4
|
|
|||||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(17.8
|
)
|
|
0.5
|
|
|
—
|
|
|
(3.3
|
)
|
|
(20.6
|
)
|
|||||
|
Income Tax (Expense) Benefit
|
|
(3.7
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.7
|
)
|
|
(4.3
|
)
|
|||||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(14.1
|
)
|
|
0.4
|
|
|
—
|
|
|
(2.6
|
)
|
|
(16.3
|
)
|
|||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
4.1
|
|
|
0.4
|
|
|
—
|
|
|
(2.6
|
)
|
|
1.9
|
|
|||||
|
ASU 2018-02 Adoption
|
|
(6.1
|
)
|
|
(2.7
|
)
|
|
—
|
|
|
(8.2
|
)
|
|
(17.0
|
)
|
|||||
|
ASU 2016-01 Adoption
|
|
—
|
|
|
—
|
|
|
(11.9
|
)
|
|
—
|
|
|
(11.9
|
)
|
|||||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(30.4
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
—
|
|
|
$
|
(49.1
|
)
|
|
$
|
(94.8
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
(4.1
|
)
|
|
$
|
(10.7
|
)
|
|
$
|
(14.8
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
|||
|
Income Tax (Expense) Benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(3.9
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(14.5
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
(5.2
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
(15.0
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
|
Income Tax (Expense) Benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(4.9
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
(14.7
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
(4.4
|
)
|
|
$
|
(10.7
|
)
|
|
$
|
(15.1
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.6
|
|
|
0.1
|
|
|
0.7
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.5
|
|
|
0.1
|
|
|
0.6
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.5
|
|
|
0.1
|
|
|
0.6
|
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(3.9
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(14.5
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
(4.5
|
)
|
|
$
|
(8.1
|
)
|
|
$
|
(12.6
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.6
|
|
|
0.1
|
|
|
0.7
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.5
|
|
|
0.1
|
|
|
0.6
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.5
|
|
|
0.1
|
|
|
0.6
|
|
|||
|
ASU 2018-02 Adoption
|
|
(0.9
|
)
|
|
(1.8
|
)
|
|
(2.7
|
)
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(4.9
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
(14.7
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
1.6
|
|
|
$
|
(7.4
|
)
|
|
$
|
(5.8
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
(0.8
|
)
|
|
(1.0
|
)
|
|||
|
Income Tax (Expense) Benefit
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
(0.9
|
)
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
(0.9
|
)
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
1.4
|
|
|
$
|
(8.1
|
)
|
|
$
|
(6.7
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
2.5
|
|
|
$
|
(1.9
|
)
|
|
$
|
0.6
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
(1.0
|
)
|
|
(1.2
|
)
|
|||
|
Income Tax (Expense) Benefit
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
(0.8
|
)
|
|
(1.0
|
)
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.2
|
)
|
|
(0.8
|
)
|
|
(1.0
|
)
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
2.3
|
|
|
$
|
(2.7
|
)
|
|
$
|
(0.4
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
1.8
|
|
|
$
|
(6.8
|
)
|
|
$
|
(5.0
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.5
|
)
|
|
(1.6
|
)
|
|
(2.1
|
)
|
|||
|
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
(1.3
|
)
|
|
(1.7
|
)
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.4
|
)
|
|
(1.3
|
)
|
|
(1.7
|
)
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
1.4
|
|
|
$
|
(8.1
|
)
|
|
$
|
(6.7
|
)
|
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
|
Six Months Ended June 30, 2018
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
—
|
|
|
$
|
2.2
|
|
|
$
|
(0.9
|
)
|
|
$
|
1.3
|
|
|
Change in Fair Value Recognized in AOCI
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
||||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
|
Purchased Electricity for Resale (a)
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
||||
|
Interest Expense (a)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
||||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
||||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.6
|
|
||||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.9
|
|
|
(0.5
|
)
|
|
(2.0
|
)
|
|
(1.6
|
)
|
||||
|
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
||||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.7
|
|
|
(0.4
|
)
|
|
(1.6
|
)
|
|
(1.3
|
)
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
(0.4
|
)
|
|
(1.6
|
)
|
|
(2.0
|
)
|
||||
|
ASU 2018-02 Adoption
|
|
—
|
|
|
0.5
|
|
|
(0.2
|
)
|
|
0.3
|
|
||||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
—
|
|
|
$
|
2.3
|
|
|
$
|
(2.7
|
)
|
|
$
|
(0.4
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
(11.1
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(13.4
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.5
|
|
|
(0.1
|
)
|
|
0.4
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.4
|
|
|
(0.1
|
)
|
|
0.3
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.4
|
|
|
(0.1
|
)
|
|
0.3
|
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(10.7
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(13.1
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
(12.7
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(14.4
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(12.2
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(13.9
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
(11.5
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(13.8
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.0
|
|
|
(0.1
|
)
|
|
0.9
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.8
|
|
|
(0.1
|
)
|
|
0.7
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.8
|
|
|
(0.1
|
)
|
|
0.7
|
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(10.7
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(13.1
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
|
(in millions)
|
||||||||||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
(10.7
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(12.1
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|||
|
ASU 2018-02 Adoption
|
|
(2.4
|
)
|
|
(0.3
|
)
|
|
(2.7
|
)
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(12.2
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(13.9
|
)
|
|
|
|
Cash Flow Hedge –
|
||
|
Three Months Ended June 30, 2019
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
0.7
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.5
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.5
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.4
|
)
|
|
|
Balance in AOCI as of June 30, 2019
|
|
$
|
0.3
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Three Months Ended June 30, 2018
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
2.0
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.4
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.3
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.3
|
)
|
|
|
Balance in AOCI as of June 30, 2018
|
|
$
|
1.7
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Six Months Ended June 30, 2019
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
1.0
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.9
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.9
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.7
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.7
|
)
|
|
|
Balance in AOCI as of June 30, 2019
|
|
$
|
0.3
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Six Months Ended June 30, 2018
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
1.9
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.8
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.8
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.6
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.6
|
)
|
|
|
ASU 2018-02 Adoption
|
|
0.4
|
|
|
|
Balance in AOCI as of June 30, 2018
|
|
$
|
1.7
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Three Months Ended June 30, 2019
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
1.9
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.4
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.3
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.3
|
)
|
|
|
Balance in AOCI as of June 30, 2019
|
|
$
|
1.6
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Three Months Ended June 30, 2018
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
2.9
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.4
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.3
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.3
|
)
|
|
|
Balance in AOCI as of June 30, 2018
|
|
$
|
2.6
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Six Months Ended June 30, 2019
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
2.1
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.7
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.7
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.5
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.5
|
)
|
|
|
Balance in AOCI as of June 30, 2019
|
|
$
|
1.6
|
|
|
|
|
Cash Flow Hedge –
|
||
|
Six Months Ended June 30, 2018
|
|
Interest Rate
|
||
|
|
(in millions)
|
|||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
2.6
|
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
|
Interest Expense (a)
|
|
(0.7
|
)
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.7
|
)
|
|
|
Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.5
|
)
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.5
|
)
|
|
|
ASU 2018-02 Adoption
|
|
0.5
|
|
|
|
Balance in AOCI as of June 30, 2018
|
|
$
|
2.6
|
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2019
|
|
$
|
(2.9
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(5.3
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.5
|
|
|
(0.4
|
)
|
|
0.1
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
(0.1
|
)
|
|
—
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.4
|
|
|
(0.3
|
)
|
|
0.1
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.4
|
|
|
(0.3
|
)
|
|
0.1
|
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(2.5
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(5.2
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Three Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of March 31, 2018
|
|
$
|
(6.9
|
)
|
|
$
|
2.1
|
|
|
$
|
(4.8
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.6
|
|
|
(0.5
|
)
|
|
0.1
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
(0.1
|
)
|
|
—
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.5
|
|
|
(0.4
|
)
|
|
0.1
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.5
|
|
|
(0.4
|
)
|
|
0.1
|
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(6.4
|
)
|
|
$
|
1.7
|
|
|
$
|
(4.7
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of December 31, 2018
|
|
$
|
(3.3
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(5.4
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.0
|
|
|
(0.8
|
)
|
|
0.2
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.8
|
|
|
(0.6
|
)
|
|
0.2
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.8
|
|
|
(0.6
|
)
|
|
0.2
|
|
|||
|
Balance in AOCI as of June 30, 2019
|
|
$
|
(2.5
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(5.2
|
)
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
|
Six Months Ended June 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
|||||||||||
|
Balance in AOCI as of December 31, 2017
|
|
$
|
(6.0
|
)
|
|
$
|
2.0
|
|
|
$
|
(4.0
|
)
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
|
Interest Expense (a)
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|||
|
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|||
|
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.1
|
|
|
(0.9
|
)
|
|
0.2
|
|
|||
|
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
|||
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.9
|
|
|
(0.7
|
)
|
|
0.2
|
|
|||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
0.9
|
|
|
(0.7
|
)
|
|
0.2
|
|
|||
|
ASU 2018-02 Adoption
|
|
(1.3
|
)
|
|
0.4
|
|
|
(0.9
|
)
|
|||
|
Balance in AOCI as of June 30, 2018
|
|
$
|
(6.4
|
)
|
|
$
|
1.7
|
|
|
$
|
(4.7
|
)
|
|
(a)
|
Amounts reclassified to the referenced line item on the statements of income.
|
|
(b)
|
The change in fair value includes $4 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.
|
|
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)
|
||||||||||||||||||||||||||
|
$
|
106.6
|
|
|
$
|
74.6
|
|
|
$
|
32.0
|
|
|
$
|
16.4
|
|
|
$
|
3.1
|
|
|
$
|
5.1
|
|
|
2020
|
|
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.
|
|
(a)
|
In June 2019, the PUCT approved AEP Texas’ request to securitize its total estimated distribution-related system restoration costs. See “Texas Storm Cost Securitization” discussion below for additional information.
|
|
(b)
|
In 2015, APCo recorded a $91 million reduction 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
|
||||||
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
|
||||
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
||||
|
Rate Case Expense
|
|
$
|
0.7
|
|
|
$
|
0.2
|
|
|
Storm-Related Costs (a)
|
|
—
|
|
|
152.4
|
|
||
|
Total Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
0.7
|
|
|
$
|
152.6
|
|
|
(a)
|
In June 2019, the PUCT approved AEP Texas’ request to securitize its total estimated distribution-related system restoration costs. See “Texas Storm Cost Securitization” discussion below for additional information.
|
|
|
|
APCo
|
||||||
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
|
||||
|
Regulatory Assets Currently Earning a Return
|
|
|
|
|
||||
|
Plant Retirement Costs – Materials and Supplies
|
|
$
|
5.1
|
|
|
$
|
9.0
|
|
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
||||
|
Plant Retirement Costs – Asset Retirement Obligation Costs
|
|
35.3
|
|
|
35.3
|
|
||
|
Other Regulatory Assets Pending Final Regulatory Approval
|
|
—
|
|
|
0.6
|
|
||
|
Total Regulatory Assets Pending Final Regulatory Approval (a)
|
|
$
|
40.4
|
|
|
$
|
44.9
|
|
|
(a)
|
In 2015, APCo recorded a $91 million reduction 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.
|
|
|
|
OPCo
|
||||||
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
|
||||
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
||||
|
Other Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
0.1
|
|
|
$
|
1.0
|
|
|
Total Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
0.1
|
|
|
$
|
1.0
|
|
|
|
|
PSO
|
||||||
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
|
||||
|
Regulatory Assets Currently Earning a Return
|
|
|
|
|
||||
|
Oklaunion Power Station Accelerated Depreciation
|
|
$
|
16.4
|
|
|
$
|
5.5
|
|
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
||
|
Other Regulatory Assets Pending Final Regulatory Approval
|
|
—
|
|
|
0.5
|
|
||
|
Total Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
16.4
|
|
|
$
|
6.0
|
|
|
|
|
SWEPCo
|
||||||
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
|
2019
|
|
2018
|
||||
|
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
|
||||
|
Regulatory Assets Currently Earning a Return
|
|
|
|
|
||||
|
Plant Retirement Costs – Unrecovered Plant
|
|
$
|
50.3
|
|
|
$
|
50.3
|
|
|
Other Regulatory Assets Pending Final Regulatory Approval
|
|
0.3
|
|
|
0.3
|
|
||
|
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
|
|
||
|
Asset Retirement Obligation - Arkansas, Louisiana
|
|
6.3
|
|
|
5.3
|
|
||
|
Rate Case Expense – Texas
|
|
1.2
|
|
|
4.9
|
|
||
|
Other Regulatory Assets Pending Final Regulatory Approval
|
|
4.0
|
|
|
3.6
|
|
||
|
Total Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
62.1
|
|
|
$
|
64.4
|
|
|
(a)
|
Amount includes $16 million of debt carrying costs recorded as a reduction to Interest Expense in the second quarter of 2019.
|
|
(b)
|
As part of the financing order, AEP Texas agreed to offset a portion of their Excess ADIT that is not subject to rate normalization requirements against the total distribution-related system restoration costs.
|
|
Company
|
|
Amount
|
|
Maturity
|
||
|
|
|
(in millions)
|
|
|
||
|
AEP
|
|
$
|
181.0
|
|
|
July 2019 to June 2020
|
|
AEP Texas
|
|
2.2
|
|
|
January 2020
|
|
|
OPCo
|
|
3.6
|
|
|
September 2019 to April 2020
|
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
23.9
|
|
|
$
|
24.4
|
|
|
$
|
2.3
|
|
|
$
|
2.9
|
|
|
Interest Cost
|
51.1
|
|
|
47.0
|
|
|
12.7
|
|
|
11.9
|
|
||||
|
Expected Return on Plan Assets
|
(74.0
|
)
|
|
(72.6
|
)
|
|
(23.5
|
)
|
|
(25.6
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(17.2
|
)
|
|
(17.2
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
14.4
|
|
|
21.3
|
|
|
5.6
|
|
|
2.6
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
15.4
|
|
|
$
|
20.1
|
|
|
$
|
(20.1
|
)
|
|
$
|
(25.4
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
47.8
|
|
|
$
|
48.8
|
|
|
$
|
4.7
|
|
|
$
|
5.8
|
|
|
Interest Cost
|
102.2
|
|
|
93.9
|
|
|
25.3
|
|
|
23.7
|
|
||||
|
Expected Return on Plan Assets
|
(148.0
|
)
|
|
(145.1
|
)
|
|
(46.9
|
)
|
|
(51.1
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(34.5
|
)
|
|
(34.5
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
28.8
|
|
|
42.6
|
|
|
11.1
|
|
|
5.2
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
30.8
|
|
|
$
|
40.2
|
|
|
$
|
(40.3
|
)
|
|
$
|
(50.9
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
2.2
|
|
|
$
|
2.3
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
Interest Cost
|
4.3
|
|
|
4.0
|
|
|
1.0
|
|
|
1.0
|
|
||||
|
Expected Return on Plan Assets
|
(6.5
|
)
|
|
(6.4
|
)
|
|
(1.9
|
)
|
|
(2.2
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
1.3
|
|
|
1.8
|
|
|
0.4
|
|
|
0.2
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.3
|
|
|
$
|
1.7
|
|
|
$
|
(1.7
|
)
|
|
$
|
(2.3
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
4.3
|
|
|
$
|
4.6
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
Interest Cost
|
8.7
|
|
|
8.0
|
|
|
2.0
|
|
|
1.9
|
|
||||
|
Expected Return on Plan Assets
|
(12.9
|
)
|
|
(12.8
|
)
|
|
(3.9
|
)
|
|
(4.3
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
|
(2.9
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
2.5
|
|
|
3.6
|
|
|
0.9
|
|
|
0.4
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
2.6
|
|
|
$
|
3.4
|
|
|
$
|
(3.5
|
)
|
|
$
|
(4.5
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
2.3
|
|
|
$
|
2.3
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
Interest Cost
|
6.3
|
|
|
5.9
|
|
|
2.1
|
|
|
2.1
|
|
||||
|
Expected Return on Plan Assets
|
(9.3
|
)
|
|
(9.2
|
)
|
|
(3.6
|
)
|
|
(4.0
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
1.7
|
|
|
2.7
|
|
|
0.9
|
|
|
0.5
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.0
|
|
|
$
|
1.7
|
|
|
$
|
(2.9
|
)
|
|
$
|
(3.7
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
4.7
|
|
|
$
|
4.6
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
Interest Cost
|
12.6
|
|
|
11.8
|
|
|
4.3
|
|
|
4.1
|
|
||||
|
Expected Return on Plan Assets
|
(18.7
|
)
|
|
(18.3
|
)
|
|
(7.3
|
)
|
|
(8.0
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
|
(5.0
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
3.5
|
|
|
5.3
|
|
|
1.8
|
|
|
1.0
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
2.1
|
|
|
$
|
3.4
|
|
|
$
|
(5.7
|
)
|
|
$
|
(7.4
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
3.3
|
|
|
$
|
3.4
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
Interest Cost
|
5.9
|
|
|
5.5
|
|
|
1.4
|
|
|
1.3
|
|
||||
|
Expected Return on Plan Assets
|
(9.2
|
)
|
|
(8.9
|
)
|
|
(2.9
|
)
|
|
(3.1
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
(2.3
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
1.7
|
|
|
2.4
|
|
|
0.6
|
|
|
0.3
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.7
|
|
|
$
|
2.4
|
|
|
$
|
(2.8
|
)
|
|
$
|
(3.4
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
6.7
|
|
|
$
|
6.8
|
|
|
$
|
0.7
|
|
|
$
|
0.8
|
|
|
Interest Cost
|
11.9
|
|
|
11.0
|
|
|
2.9
|
|
|
2.7
|
|
||||
|
Expected Return on Plan Assets
|
(18.4
|
)
|
|
(17.8
|
)
|
|
(5.7
|
)
|
|
(6.2
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
3.3
|
|
|
4.9
|
|
|
1.3
|
|
|
0.6
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
3.5
|
|
|
$
|
4.9
|
|
|
$
|
(5.5
|
)
|
|
$
|
(6.8
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
2.0
|
|
|
$
|
1.8
|
|
|
$
|
0.2
|
|
|
$
|
0.3
|
|
|
Interest Cost
|
4.8
|
|
|
4.5
|
|
|
1.3
|
|
|
1.3
|
|
||||
|
Expected Return on Plan Assets
|
(7.4
|
)
|
|
(7.2
|
)
|
|
(2.7
|
)
|
|
(2.9
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|
(1.8
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
1.4
|
|
|
2.0
|
|
|
0.7
|
|
|
0.2
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
0.8
|
|
|
$
|
1.1
|
|
|
$
|
(2.2
|
)
|
|
$
|
(2.9
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
4.0
|
|
|
$
|
3.8
|
|
|
$
|
0.4
|
|
|
$
|
0.5
|
|
|
Interest Cost
|
9.5
|
|
|
8.9
|
|
|
2.7
|
|
|
2.6
|
|
||||
|
Expected Return on Plan Assets
|
(14.7
|
)
|
|
(14.4
|
)
|
|
(5.4
|
)
|
|
(5.9
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|
(3.5
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
2.7
|
|
|
4.0
|
|
|
1.3
|
|
|
0.5
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.5
|
|
|
$
|
2.3
|
|
|
$
|
(4.4
|
)
|
|
$
|
(5.8
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
1.7
|
|
|
$
|
1.8
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
Interest Cost
|
2.7
|
|
|
2.5
|
|
|
0.6
|
|
|
0.6
|
|
||||
|
Expected Return on Plan Assets
|
(4.1
|
)
|
|
(4.1
|
)
|
|
(1.3
|
)
|
|
(1.4
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
(1.1
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
0.7
|
|
|
1.1
|
|
|
0.3
|
|
|
0.2
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.0
|
|
|
$
|
1.3
|
|
|
$
|
(1.3
|
)
|
|
$
|
(1.5
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
3.3
|
|
|
$
|
3.6
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
|
Interest Cost
|
5.3
|
|
|
4.9
|
|
|
1.3
|
|
|
1.2
|
|
||||
|
Expected Return on Plan Assets
|
(8.2
|
)
|
|
(8.1
|
)
|
|
(2.6
|
)
|
|
(2.8
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
(2.1
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
1.5
|
|
|
2.2
|
|
|
0.6
|
|
|
0.3
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.9
|
|
|
$
|
2.6
|
|
|
$
|
(2.5
|
)
|
|
$
|
(3.0
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
2.2
|
|
|
$
|
2.3
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
Interest Cost
|
3.1
|
|
|
2.8
|
|
|
0.8
|
|
|
0.7
|
|
||||
|
Expected Return on Plan Assets
|
(4.5
|
)
|
|
(4.3
|
)
|
|
(1.5
|
)
|
|
(1.6
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
0.8
|
|
|
1.2
|
|
|
0.4
|
|
|
0.2
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
1.6
|
|
|
$
|
2.0
|
|
|
$
|
(1.4
|
)
|
|
$
|
(1.8
|
)
|
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Service Cost
|
$
|
4.3
|
|
|
$
|
4.6
|
|
|
$
|
0.4
|
|
|
$
|
0.5
|
|
|
Interest Cost
|
6.2
|
|
|
5.7
|
|
|
1.6
|
|
|
1.4
|
|
||||
|
Expected Return on Plan Assets
|
(8.9
|
)
|
|
(8.7
|
)
|
|
(3.0
|
)
|
|
(3.2
|
)
|
||||
|
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
||||
|
Amortization of Net Actuarial Loss
|
1.7
|
|
|
2.5
|
|
|
0.7
|
|
|
0.3
|
|
||||
|
Net Periodic Benefit Cost (Credit)
|
$
|
3.3
|
|
|
$
|
4.1
|
|
|
$
|
(2.9
|
)
|
|
$
|
(3.6
|
)
|
|
•
|
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 June 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
|
$
|
2,116.4
|
|
|
$
|
1,001.6
|
|
|
$
|
69.8
|
|
|
$
|
382.9
|
|
|
$
|
2.9
|
|
|
$
|
—
|
|
|
$
|
3,573.6
|
|
|
Other Operating Segments
|
7.4
|
|
|
44.1
|
|
|
209.1
|
|
|
29.8
|
|
|
20.9
|
|
|
(311.3
|
)
|
|
—
|
|
|||||||
|
Total Revenues
|
$
|
2,123.8
|
|
|
$
|
1,045.7
|
|
|
$
|
278.9
|
|
|
$
|
412.7
|
|
|
$
|
23.8
|
|
|
$
|
(311.3
|
)
|
|
$
|
3,573.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Income (Loss)
|
$
|
178.8
|
|
|
$
|
131.4
|
|
|
$
|
155.4
|
|
|
$
|
5.2
|
|
|
$
|
(11.7
|
)
|
|
$
|
—
|
|
|
$
|
459.1
|
|
|
|
Three Months Ended June 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
|
$
|
2,340.7
|
|
|
$
|
1,127.9
|
|
|
$
|
103.5
|
|
|
$
|
435.3
|
|
|
$
|
5.8
|
|
|
$
|
—
|
|
|
$
|
4,013.2
|
|
|
Other Operating Segments
|
8.3
|
|
|
9.1
|
|
|
109.0
|
|
|
25.4
|
|
|
18.0
|
|
|
(169.8
|
)
|
|
—
|
|
|||||||
|
Total Revenues
|
$
|
2,349.0
|
|
|
$
|
1,137.0
|
|
|
$
|
212.5
|
|
|
$
|
460.7
|
|
|
$
|
23.8
|
|
|
$
|
(169.8
|
)
|
|
$
|
4,013.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Income (Loss)
|
$
|
277.9
|
|
|
$
|
114.0
|
|
|
$
|
101.9
|
|
|
$
|
38.6
|
|
|
$
|
(2.3
|
)
|
|
$
|
—
|
|
|
$
|
530.1
|
|
|
|
Six Months Ended June 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
|
$
|
4,488.7
|
|
|
$
|
2,181.4
|
|
|
$
|
131.0
|
|
|
$
|
822.6
|
|
|
$
|
6.7
|
|
|
$
|
—
|
|
|
$
|
7,630.4
|
|
|
Other Operating Segments
|
38.4
|
|
|
86.3
|
|
|
404.3
|
|
|
71.9
|
|
|
42.6
|
|
|
(643.5
|
)
|
|
—
|
|
|||||||
|
Total Revenues
|
$
|
4,527.1
|
|
|
$
|
2,267.7
|
|
|
$
|
535.3
|
|
|
$
|
894.5
|
|
|
$
|
49.3
|
|
|
$
|
(643.5
|
)
|
|
$
|
7,630.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Income (Loss)
|
$
|
482.4
|
|
|
$
|
287.9
|
|
|
$
|
280.6
|
|
|
$
|
44.4
|
|
|
$
|
(62.1
|
)
|
|
$
|
—
|
|
|
$
|
1,033.2
|
|
|
|
Six Months Ended June 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
|
$
|
4,722.2
|
|
|
$
|
2,269.1
|
|
|
$
|
144.6
|
|
|
$
|
912.8
|
|
|
$
|
12.8
|
|
|
$
|
—
|
|
|
$
|
8,061.5
|
|
|
Other Operating Segments
|
34.8
|
|
|
30.3
|
|
|
273.4
|
|
|
53.0
|
|
|
35.0
|
|
|
(426.5
|
)
|
|
—
|
|
|||||||
|
Total Revenues
|
$
|
4,757.0
|
|
|
$
|
2,299.4
|
|
|
$
|
418.0
|
|
|
$
|
965.8
|
|
|
$
|
47.8
|
|
|
$
|
(426.5
|
)
|
|
$
|
8,061.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Income (Loss)
|
$
|
510.7
|
|
|
$
|
239.4
|
|
|
$
|
206.7
|
|
|
$
|
56.7
|
|
|
$
|
(26.7
|
)
|
|
$
|
—
|
|
|
$
|
986.8
|
|
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||
|
|
|
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
|
|
$
|
46,201.8
|
|
|
$
|
18,874.5
|
|
|
$
|
9,330.3
|
|
|
$
|
1,176.7
|
|
|
$
|
413.2
|
|
|
$
|
(354.5
|
)
|
(b)
|
$
|
75,642.0
|
|
|
Accumulated Depreciation and Amortization
|
|
14,124.6
|
|
|
3,878.3
|
|
|
350.1
|
|
|
79.2
|
|
|
193.3
|
|
|
(186.4
|
)
|
(b)
|
18,439.1
|
|
|||||||
|
Total Property Plant and Equipment - Net
|
|
$
|
32,077.2
|
|
|
$
|
14,996.2
|
|
|
$
|
8,980.2
|
|
|
$
|
1,097.5
|
|
|
$
|
219.9
|
|
|
$
|
(168.1
|
)
|
(b)
|
$
|
57,202.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Assets
|
|
$
|
40,430.0
|
|
|
$
|
17,769.1
|
|
|
$
|
10,088.4
|
|
|
$
|
2,795.2
|
|
|
$
|
4,719.1
|
|
(c)
|
$
|
(3,251.8
|
)
|
(b) (d)
|
$
|
72,550.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Long-term Debt Due Within One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Nonaffiliated
|
|
$
|
674.5
|
|
|
$
|
334.5
|
|
|
$
|
248.2
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
(e)
|
$
|
—
|
|
|
$
|
1,257.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Affiliated
|
|
59.0
|
|
|
—
|
|
|
—
|
|
|
32.2
|
|
|
—
|
|
|
(91.2
|
)
|
|
—
|
|
|||||||
|
Nonaffiliated
|
|
12,210.3
|
|
|
5,798.2
|
|
|
3,082.9
|
|
|
(0.3
|
)
|
|
3,083.3
|
|
|
—
|
|
|
24,174.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Long-term Debt
|
|
$
|
12,943.8
|
|
|
$
|
6,132.7
|
|
|
$
|
3,331.1
|
|
|
$
|
31.9
|
|
|
$
|
3,083.5
|
|
(e)
|
$
|
(91.2
|
)
|
|
$
|
25,431.8
|
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
|
|
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
|
|
$
|
45,365.1
|
|
|
$
|
18,126.7
|
|
|
$
|
8,659.5
|
|
|
$
|
893.3
|
|
|
$
|
395.2
|
|
|
$
|
(354.6
|
)
|
(b)
|
$
|
73,085.2
|
|
|
Accumulated Depreciation and Amortization
|
|
13,822.5
|
|
|
3,833.7
|
|
|
282.8
|
|
|
47.0
|
|
|
186.6
|
|
|
(186.5
|
)
|
(b)
|
17,986.1
|
|
|||||||
|
Total Property Plant and Equipment - Net
|
|
$
|
31,542.6
|
|
|
$
|
14,293.0
|
|
|
$
|
8,376.7
|
|
|
$
|
846.3
|
|
|
$
|
208.6
|
|
|
$
|
(168.1
|
)
|
(b)
|
$
|
55,099.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Assets
|
|
$
|
38,874.3
|
|
|
$
|
17,083.4
|
|
|
$
|
9,543.7
|
|
|
$
|
1,979.7
|
|
|
$
|
4,036.5
|
|
(c)
|
$
|
(2,714.8
|
)
|
(b) (d)
|
$
|
68,802.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Long-term Debt Due Within One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Nonaffiliated
|
|
$
|
1,066.3
|
|
|
$
|
549.1
|
|
|
$
|
85.0
|
|
|
$
|
0.1
|
|
|
$
|
(2.0
|
)
|
(e)
|
$
|
—
|
|
|
$
|
1,698.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Affiliated
|
|
50.0
|
|
|
—
|
|
|
—
|
|
|
32.2
|
|
|
—
|
|
|
(82.2
|
)
|
|
—
|
|
|||||||
|
Nonaffiliated
|
|
11,442.7
|
|
|
5,048.8
|
|
|
2,888.6
|
|
|
(0.3
|
)
|
|
2,268.4
|
|
|
—
|
|
|
21,648.2
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Long-term Debt
|
|
$
|
12,559.0
|
|
|
$
|
5,597.9
|
|
|
$
|
2,973.6
|
|
|
$
|
32.0
|
|
|
$
|
2,266.4
|
|
(e)
|
$
|
(82.2
|
)
|
|
$
|
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 and 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 June 30, 2019
|
||||||||||||||
|
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Revenues from:
|
|
|
|
|
|
|
|
||||||||
|
External Customers
|
$
|
57.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57.8
|
|
|
Sales to AEP Affiliates
|
209.1
|
|
|
—
|
|
|
—
|
|
|
209.1
|
|
||||
|
Other Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Total Revenues
|
$
|
266.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
266.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Income
|
$
|
0.2
|
|
|
$
|
29.0
|
|
|
$
|
(28.6
|
)
|
(a)
|
$
|
0.6
|
|
|
Interest Expense
|
21.4
|
|
|
28.6
|
|
|
(28.6
|
)
|
(a)
|
21.4
|
|
||||
|
Income Tax Expense
|
32.9
|
|
|
0.1
|
|
|
—
|
|
|
33.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income
|
$
|
135.6
|
|
|
$
|
0.4
|
|
(b)
|
$
|
—
|
|
|
$
|
136.0
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||
|
|
State Transcos (f)
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated (f)
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Revenues from:
|
|
|
|
|
|
|
|
||||||||
|
External Customers
|
$
|
55.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55.4
|
|
|
Sales to AEP Affiliates
|
144.7
|
|
|
—
|
|
|
—
|
|
|
144.7
|
|
||||
|
Other Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Total Revenues
|
$
|
200.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Income
|
$
|
—
|
|
|
$
|
25.2
|
|
|
$
|
(24.8
|
)
|
(a)
|
$
|
0.4
|
|
|
Interest Expense
|
20.6
|
|
|
24.8
|
|
|
(24.8
|
)
|
(a)
|
20.6
|
|
||||
|
Income Tax Expense
|
23.6
|
|
|
0.5
|
|
|
—
|
|
|
24.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income
|
$
|
82.4
|
|
|
$
|
(0.4
|
)
|
(b)
|
$
|
—
|
|
|
$
|
82.0
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||
|
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Revenues from:
|
|
|
|
|
|
|
|
||||||||
|
External Customers
|
$
|
108.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
108.1
|
|
|
Sales to AEP Affiliates
|
402.3
|
|
|
—
|
|
|
—
|
|
|
402.3
|
|
||||
|
Other Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Total Revenues
|
$
|
510.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
510.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Income
|
$
|
0.4
|
|
|
$
|
57.4
|
|
|
$
|
(56.5
|
)
|
(a)
|
$
|
1.3
|
|
|
Interest Expense
|
43.1
|
|
|
56.5
|
|
|
(56.5
|
)
|
(a)
|
43.1
|
|
||||
|
Income Tax Expense
|
60.5
|
|
|
0.1
|
|
|
—
|
|
|
60.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income
|
$
|
239.8
|
|
|
$
|
0.5
|
|
(b)
|
$
|
—
|
|
|
$
|
240.3
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
|
State Transcos (f)
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated (f)
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Revenues from:
|
|
|
|
|
|
|
|
||||||||
|
External Customers
|
$
|
86.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86.3
|
|
|
Sales to AEP Affiliates
|
305.4
|
|
|
—
|
|
|
—
|
|
|
305.4
|
|
||||
|
Other Revenues
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
|
Total Revenues
|
$
|
391.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
391.8
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Income
|
$
|
0.2
|
|
|
$
|
50.2
|
|
|
$
|
(49.6
|
)
|
(a)
|
$
|
0.8
|
|
|
Interest Expense
|
40.9
|
|
|
49.6
|
|
|
(49.6
|
)
|
(a)
|
40.9
|
|
||||
|
Income Tax Expense
|
45.3
|
|
|
0.8
|
|
|
—
|
|
|
46.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income
|
$
|
166.5
|
|
|
$
|
(0.4
|
)
|
(b)
|
$
|
—
|
|
|
$
|
166.1
|
|
|
|
June 30, 2019
|
||||||||||||||
|
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated |
||||||||
|
|
(in millions)
|
||||||||||||||
|
Total Transmission Property
|
$
|
8,907.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,907.5
|
|
|
Accumulated Depreciation and Amortization
|
336.6
|
|
|
—
|
|
|
—
|
|
|
336.6
|
|
||||
|
Total Transmission Property – Net
|
$
|
8,570.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,570.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Notes Receivable - Affiliated
|
$
|
—
|
|
|
$
|
3,167.9
|
|
|
$
|
(3,167.9
|
)
|
(c)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Assets
|
$
|
8,897.7
|
|
|
$
|
3,218.9
|
|
(d)
|
$
|
(3,237.4
|
)
|
(e)
|
$
|
8,879.2
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Long-term Debt
|
$
|
3,200.0
|
|
|
$
|
3,167.9
|
|
|
$
|
(3,200.0
|
)
|
(c)
|
$
|
3,167.9
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated |
||||||||
|
|
(in millions)
|
||||||||||||||
|
Total Transmission Property
|
$
|
8,268.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,268.1
|
|
|
Accumulated Depreciation and Amortization
|
271.9
|
|
|
—
|
|
|
—
|
|
|
271.9
|
|
||||
|
Total Transmission Property – Net
|
$
|
7,996.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,996.2
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Notes Receivable - Affiliated
|
$
|
—
|
|
|
$
|
2,823.0
|
|
|
$
|
(2,823.0
|
)
|
(c)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Assets
|
$
|
8,406.8
|
|
|
$
|
2,857.1
|
|
(d)
|
$
|
(2,869.8
|
)
|
(e)
|
$
|
8,394.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Long-term Debt
|
$
|
2,850.0
|
|
|
$
|
2,823.0
|
|
|
$
|
(2,850.0
|
)
|
(c)
|
$
|
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.
|
|
(f)
|
The amounts presented reflect the revisions made to AEPTCo’s previously issued financial statements. See the “Revisions to Previously Issued Financial Statements” section of Note 1 for additional information.
|
|
Primary Risk
Exposure
|
|
Unit of
Measure
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Commodity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Power
|
|
MWhs
|
|
478.4
|
|
|
—
|
|
|
125.6
|
|
|
45.1
|
|
|
7.4
|
|
|
31.0
|
|
|
9.8
|
|
|||||||
|
Natural Gas
|
|
MMBtus
|
|
64.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.4
|
|
|||||||
|
Heating Oil and Gasoline
|
|
Gallons
|
|
7.9
|
|
|
1.6
|
|
|
1.5
|
|
|
0.7
|
|
|
1.9
|
|
|
0.8
|
|
|
0.9
|
|
|||||||
|
Interest Rate
|
|
USD
|
|
$
|
143.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest Rate
|
|
USD
|
|
$
|
500.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Primary Risk
Exposure
|
|
Unit of
Measure
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Commodity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Power
|
|
MWhs
|
|
371.1
|
|
|
—
|
|
|
66.4
|
|
|
40.9
|
|
|
7.8
|
|
|
15.2
|
|
|
4.5
|
|
|||||||
|
Natural Gas
|
|
MMBtus
|
|
87.9
|
|
|
—
|
|
|
4.0
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
15.2
|
|
|||||||
|
Heating Oil and Gasoline
|
|
Gallons
|
|
7.4
|
|
|
1.5
|
|
|
1.4
|
|
|
0.7
|
|
|
1.8
|
|
|
0.7
|
|
|
0.8
|
|
|||||||
|
Interest Rate
|
|
USD
|
|
$
|
37.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest Rate
|
|
USD
|
|
$
|
500.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
|
Cash Collateral
|
|
Cash Collateral
|
|
Cash Collateral
|
|
Cash Collateral
|
||||||||
|
|
|
Received
|
|
Paid
|
|
Received
|
|
Paid
|
||||||||
|
|
|
Netted Against
|
|
Netted Against
|
|
Netted Against
|
|
Netted Against
|
||||||||
|
|
|
Risk Management
|
|
Risk Management
|
|
Risk Management
|
|
Risk Management
|
||||||||
|
Company
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
AEP
|
|
$
|
3.5
|
|
|
$
|
31.5
|
|
|
$
|
18.0
|
|
|
$
|
4.2
|
|
|
APCo
|
|
0.9
|
|
|
3.4
|
|
|
1.5
|
|
|
0.6
|
|
||||
|
I&M
|
|
0.8
|
|
|
2.1
|
|
|
1.6
|
|
|
0.7
|
|
||||
|
|
|
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
|
|
$
|
534.3
|
|
|
$
|
4.8
|
|
|
$
|
0.2
|
|
|
$
|
539.3
|
|
|
$
|
(289.7
|
)
|
|
$
|
249.6
|
|
|
Long-term Risk Management Assets
|
|
358.7
|
|
|
4.2
|
|
|
11.7
|
|
|
374.6
|
|
|
(61.1
|
)
|
|
313.5
|
|
||||||
|
Total Assets
|
|
893.0
|
|
|
9.0
|
|
|
11.9
|
|
|
913.9
|
|
|
(350.8
|
)
|
|
563.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current Risk Management Liabilities
|
|
384.7
|
|
|
55.5
|
|
|
—
|
|
|
440.2
|
|
|
(298.8
|
)
|
|
141.4
|
|
||||||
|
Long-term Risk Management Liabilities
|
|
322.8
|
|
|
105.7
|
|
|
—
|
|
|
428.5
|
|
|
(80.0
|
)
|
|
348.5
|
|
||||||
|
Total Liabilities
|
|
707.5
|
|
|
161.2
|
|
|
—
|
|
|
868.7
|
|
|
(378.8
|
)
|
|
489.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
185.5
|
|
|
$
|
(152.2
|
)
|
|
$
|
11.9
|
|
|
$
|
45.2
|
|
|
$
|
28.0
|
|
|
$
|
73.2
|
|
|
|
|
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
|
|
$
|
397.5
|
|
|
$
|
28.5
|
|
|
$
|
—
|
|
|
$
|
426.0
|
|
|
$
|
(263.2
|
)
|
|
$
|
162.8
|
|
|
Long-term Risk Management Assets
|
|
276.4
|
|
|
16.0
|
|
|
—
|
|
|
292.4
|
|
|
(38.4
|
)
|
|
254.0
|
|
||||||
|
Total Assets
|
|
673.9
|
|
|
44.5
|
|
|
—
|
|
|
718.4
|
|
|
(301.6
|
)
|
|
416.8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current Risk Management Liabilities
|
|
293.8
|
|
|
13.2
|
|
|
2.0
|
|
|
309.0
|
|
|
(254.0
|
)
|
|
55.0
|
|
||||||
|
Long-term Risk Management Liabilities
|
|
225.7
|
|
|
56.1
|
|
|
15.4
|
|
|
297.2
|
|
|
(33.8
|
)
|
|
263.4
|
|
||||||
|
Total Liabilities
|
|
519.5
|
|
|
69.3
|
|
|
17.4
|
|
|
606.2
|
|
|
(287.8
|
)
|
|
318.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
154.4
|
|
|
$
|
(24.8
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
112.2
|
|
|
$
|
(13.8
|
)
|
|
$
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
|
Long-term Risk Management Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Liabilities
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Liabilities
|
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
|
$
|
(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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
0.7
|
|
|
(0.5
|
)
|
|
0.2
|
|
|||
|
Long-term Risk Management Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Liabilities
|
|
0.7
|
|
|
(0.5
|
)
|
|
0.2
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
(0.7
|
)
|
|
$
|
0.5
|
|
|
$
|
(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
|
|
$
|
138.1
|
|
|
$
|
(63.4
|
)
|
|
$
|
74.7
|
|
|
Long-term Risk Management Assets
|
|
7.3
|
|
|
(6.9
|
)
|
|
0.4
|
|
|||
|
Total Assets
|
|
145.4
|
|
|
(70.3
|
)
|
|
75.1
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
70.4
|
|
|
(65.8
|
)
|
|
4.6
|
|
|||
|
Long-term Risk Management Liabilities
|
|
7.1
|
|
|
(7.0
|
)
|
|
0.1
|
|
|||
|
Total Liabilities
|
|
77.5
|
|
|
(72.8
|
)
|
|
4.7
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets
|
|
$
|
67.9
|
|
|
$
|
2.5
|
|
|
$
|
70.4
|
|
|
|
|
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
|
|
$
|
114.4
|
|
|
$
|
(57.2
|
)
|
|
$
|
57.2
|
|
|
Long-term Risk Management Assets
|
|
3.1
|
|
|
(2.2
|
)
|
|
0.9
|
|
|||
|
Total Assets
|
|
117.5
|
|
|
(59.4
|
)
|
|
58.1
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
56.7
|
|
|
(56.3
|
)
|
|
0.4
|
|
|||
|
Long-term Risk Management Liabilities
|
|
2.4
|
|
|
(2.2
|
)
|
|
0.2
|
|
|||
|
Total Liabilities
|
|
59.1
|
|
|
(58.5
|
)
|
|
0.6
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
58.4
|
|
|
$
|
(0.9
|
)
|
|
$
|
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
|
|
$
|
55.1
|
|
|
$
|
(39.4
|
)
|
|
$
|
15.7
|
|
|
Long-term Risk Management Assets
|
|
4.5
|
|
|
(4.2
|
)
|
|
0.3
|
|
|||
|
Total Assets
|
|
59.6
|
|
|
(43.6
|
)
|
|
16.0
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
41.8
|
|
|
(40.6
|
)
|
|
1.2
|
|
|||
|
Long-term Risk Management Liabilities
|
|
4.3
|
|
|
(4.3
|
)
|
|
—
|
|
|||
|
Total Liabilities
|
|
46.1
|
|
|
(44.9
|
)
|
|
1.2
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets
|
|
$
|
13.5
|
|
|
$
|
1.3
|
|
|
$
|
14.8
|
|
|
|
|
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
|
|
$
|
50.4
|
|
|
$
|
(41.8
|
)
|
|
$
|
8.6
|
|
|
Long-term Risk Management Assets
|
|
2.0
|
|
|
(1.4
|
)
|
|
0.6
|
|
|||
|
Total Assets
|
|
52.4
|
|
|
(43.2
|
)
|
|
9.2
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
41.1
|
|
|
(40.8
|
)
|
|
0.3
|
|
|||
|
Long-term Risk Management Liabilities
|
|
1.6
|
|
|
(1.5
|
)
|
|
0.1
|
|
|||
|
Total Liabilities
|
|
42.7
|
|
|
(42.3
|
)
|
|
0.4
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
9.7
|
|
|
$
|
(0.9
|
)
|
|
$
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
|||
|
Long-term Risk Management Liabilities
|
|
104.1
|
|
|
—
|
|
|
104.1
|
|
|||
|
Total Liabilities
|
|
111.7
|
|
|
—
|
|
|
111.7
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Liabilities
|
|
$
|
(111.7
|
)
|
|
$
|
—
|
|
|
$
|
(111.7
|
)
|
|
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
6.4
|
|
|
(0.6
|
)
|
|
5.8
|
|
|||
|
Long-term Risk Management Liabilities
|
|
93.8
|
|
|
—
|
|
|
93.8
|
|
|||
|
Total Liabilities
|
|
100.2
|
|
|
(0.6
|
)
|
|
99.6
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
(100.2
|
)
|
|
$
|
0.6
|
|
|
$
|
(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
|
|
$
|
28.4
|
|
|
$
|
(0.4
|
)
|
|
$
|
28.0
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
28.4
|
|
|
(0.4
|
)
|
|
28.0
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
0.7
|
|
|
(0.4
|
)
|
|
0.3
|
|
|||
|
Long-term Risk Management Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Liabilities
|
|
0.7
|
|
|
(0.4
|
)
|
|
0.3
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets
|
|
$
|
27.7
|
|
|
$
|
—
|
|
|
$
|
27.7
|
|
|
|
|
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
|
|
$
|
10.9
|
|
|
$
|
(0.5
|
)
|
|
$
|
10.4
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
10.9
|
|
|
(0.5
|
)
|
|
10.4
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
1.7
|
|
|
(0.7
|
)
|
|
1.0
|
|
|||
|
Long-term Risk Management Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Liabilities
|
|
1.7
|
|
|
(0.7
|
)
|
|
1.0
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets
|
|
$
|
9.2
|
|
|
$
|
0.2
|
|
|
$
|
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
|
|
$
|
12.5
|
|
|
$
|
(0.2
|
)
|
|
$
|
12.3
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
12.5
|
|
|
(0.2
|
)
|
|
12.3
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
1.7
|
|
|
(0.2
|
)
|
|
1.5
|
|
|||
|
Long-term Risk Management Liabilities
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|||
|
Total Liabilities
|
|
4.1
|
|
|
(0.2
|
)
|
|
3.9
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets
|
|
$
|
8.4
|
|
|
$
|
—
|
|
|
$
|
8.4
|
|
|
|
|
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
|
|
$
|
5.6
|
|
|
$
|
(0.8
|
)
|
|
$
|
4.8
|
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Total Assets
|
|
5.6
|
|
|
(0.8
|
)
|
|
4.8
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Current Risk Management Liabilities
|
|
1.5
|
|
|
(1.1
|
)
|
|
0.4
|
|
|||
|
Long-term Risk Management Liabilities
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|||
|
Total Liabilities
|
|
3.7
|
|
|
(1.1
|
)
|
|
2.6
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Total MTM Derivative Contract Net Assets
|
|
$
|
1.9
|
|
|
$
|
0.3
|
|
|
$
|
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
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Generation & Marketing Revenues
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Purchased Electricity for Resale
|
|
(0.2
|
)
|
|
—
|
|
|
1.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Other Operation
|
|
(0.1
|
)
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||||||
|
Maintenance
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Regulatory Assets (a)
|
|
(8.2
|
)
|
|
(0.1
|
)
|
|
2.3
|
|
|
(0.1
|
)
|
|
(8.3
|
)
|
|
0.5
|
|
|
1.3
|
|
|||||||
|
Regulatory Liabilities (a)
|
|
60.2
|
|
|
—
|
|
|
16.4
|
|
|
7.4
|
|
|
—
|
|
|
16.1
|
|
|
13.7
|
|
|||||||
|
Total Gain (Loss) on Risk Management Contracts
|
|
$
|
55.5
|
|
|
$
|
(0.1
|
)
|
|
$
|
19.9
|
|
|
$
|
7.4
|
|
|
$
|
(8.3
|
)
|
|
$
|
16.6
|
|
|
$
|
14.9
|
|
|
Location of Gain (Loss)
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities Revenues
|
|
$
|
(3.2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Generation & Marketing Revenues
|
|
27.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||||
|
Purchased Electricity for Resale
|
|
3.1
|
|
|
—
|
|
|
2.4
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Other Operation
|
|
0.5
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
|
Maintenance
|
|
0.5
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
|
Regulatory Assets (a)
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
|
9.7
|
|
|
—
|
|
|
(0.8
|
)
|
|||||||
|
Regulatory Liabilities (a)
|
|
85.4
|
|
|
0.1
|
|
|
39.2
|
|
|
11.5
|
|
|
0.6
|
|
|
18.8
|
|
|
6.9
|
|
|||||||
|
Total Gain on Risk Management Contracts
|
|
$
|
119.7
|
|
|
$
|
0.3
|
|
|
$
|
41.3
|
|
|
$
|
6.7
|
|
|
$
|
10.5
|
|
|
$
|
19.0
|
|
|
$
|
6.4
|
|
|
Location of Gain (Loss)
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities Revenues
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Generation & Marketing Revenues
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||||
|
Purchased Electricity for Resale
|
|
1.2
|
|
|
—
|
|
|
1.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Other Operation
|
|
(0.5
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||||
|
Maintenance
|
|
(0.4
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||||
|
Regulatory Assets (a)
|
|
(14.6
|
)
|
|
0.5
|
|
|
0.2
|
|
|
0.2
|
|
|
(17.2
|
)
|
|
1.0
|
|
|
1.2
|
|
|||||||
|
Regulatory Liabilities (a)
|
|
38.2
|
|
|
—
|
|
|
(15.3
|
)
|
|
14.0
|
|
|
—
|
|
|
22.3
|
|
|
18.4
|
|
|||||||
|
Total Gain (Loss) on Risk Management Contracts
|
|
$
|
30.6
|
|
|
$
|
0.3
|
|
|
$
|
(14.1
|
)
|
|
$
|
14.6
|
|
|
$
|
(17.4
|
)
|
|
$
|
23.3
|
|
|
$
|
19.5
|
|
|
Location of Gain (Loss)
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities Revenues
|
|
$
|
(8.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Generation & Marketing Revenues
|
|
12.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(7.7
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||||
|
Purchased Electricity for Resale
|
|
8.0
|
|
|
—
|
|
|
7.0
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Other Operation
|
|
0.8
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
|
Maintenance
|
|
0.9
|
|
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
|
Regulatory Assets (a)
|
|
43.2
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
41.1
|
|
|
—
|
|
|
(1.1
|
)
|
|||||||
|
Regulatory Liabilities (a)
|
|
172.4
|
|
|
—
|
|
|
103.3
|
|
|
11.7
|
|
|
0.6
|
|
|
30.9
|
|
|
6.1
|
|
|||||||
|
Total Gain on Risk Management Contracts
|
|
$
|
229.0
|
|
|
$
|
0.4
|
|
|
$
|
109.8
|
|
|
$
|
8.2
|
|
|
$
|
42.1
|
|
|
$
|
31.1
|
|
|
$
|
5.3
|
|
|
(a)
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.
|
|
(a)
|
Amounts included on the balance sheets within Long-term Debt Due within One Year and Long-term Debt, respectively.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Gain (Loss) on Interest Rate Contracts:
|
|
|
|
|
|
|
|
||||||||
|
Gain (Loss) on Fair Value Hedging Instruments (a)
|
$
|
18.2
|
|
|
$
|
(7.3
|
)
|
|
$
|
29.3
|
|
|
$
|
(21.8
|
)
|
|
Gain (Loss) on Fair Value Portion of Long-term Debt (a)
|
(18.2
|
)
|
|
7.3
|
|
|
(29.3
|
)
|
|
21.8
|
|
||||
|
(a)
|
Gain (Loss) is included in Interest Expense on the statements of income.
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
|
Commodity
|
|
Interest Rate
|
|
Commodity
|
|
Interest Rate
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
AOCI Gain (Loss) Net of Tax
|
|
$
|
(127.2
|
)
|
|
$
|
(15.9
|
)
|
(a)
|
$
|
(23.0
|
)
|
|
$
|
(12.6
|
)
|
|
Portion Expected to be Reclassed to Net Income During the Next Twelve Months
|
|
(45.4
|
)
|
|
(2.2
|
)
|
|
10.4
|
|
|
(1.1
|
)
|
||||
|
(a)
|
Includes $4 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.
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
|
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
|
|
$
|
(3.9
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(4.4
|
)
|
|
$
|
(1.1
|
)
|
|
APCo
|
|
1.4
|
|
|
0.9
|
|
|
1.8
|
|
|
0.9
|
|
||||
|
I&M
|
|
(10.7
|
)
|
|
(1.6
|
)
|
|
(11.5
|
)
|
|
(1.6
|
)
|
||||
|
OPCo
|
|
0.3
|
|
|
0.3
|
|
|
1.0
|
|
|
1.0
|
|
||||
|
PSO
|
|
1.6
|
|
|
1.0
|
|
|
2.1
|
|
|
1.0
|
|
||||
|
SWEPCo
|
|
(2.5
|
)
|
|
(1.5
|
)
|
|
(3.3
|
)
|
|
(1.5
|
)
|
||||
|
|
|
June 30, 2019
|
||||||||||
|
|
|
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
|
|
$
|
347.0
|
|
|
$
|
6.7
|
|
|
$
|
317.8
|
|
|
APCo
|
|
6.1
|
|
|
—
|
|
|
0.5
|
|
|||
|
I&M
|
|
3.6
|
|
|
—
|
|
|
0.3
|
|
|||
|
SWEPCo
|
|
4.0
|
|
|
—
|
|
|
2.9
|
|
|||
|
|
|
December 31, 2018
|
||||||||||
|
|
|
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
|
|
$
|
225.5
|
|
|
$
|
1.8
|
|
|
$
|
181.0
|
|
|
APCo
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|||
|
I&M
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|||
|
SWEPCo
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|||
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Company
|
|
Book Value
|
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
AEP (a)
|
|
$
|
25,431.8
|
|
|
$
|
28,377.7
|
|
|
$
|
23,346.7
|
|
|
$
|
24,093.9
|
|
|
AEP Texas
|
|
3,994.6
|
|
|
4,403.8
|
|
|
3,881.3
|
|
|
3,964.6
|
|
||||
|
AEPTCo
|
|
3,167.9
|
|
|
3,481.7
|
|
|
2,823.0
|
|
|
2,782.4
|
|
||||
|
APCo
|
|
4,374.8
|
|
|
5,177.0
|
|
|
4,062.6
|
|
|
4,473.3
|
|
||||
|
I&M
|
|
3,054.5
|
|
|
3,389.9
|
|
|
3,035.4
|
|
|
3,070.2
|
|
||||
|
OPCo
|
|
2,138.2
|
|
|
2,553.1
|
|
|
1,716.6
|
|
|
1,919.7
|
|
||||
|
PSO
|
|
1,386.3
|
|
|
1,579.7
|
|
|
1,287.0
|
|
|
1,361.9
|
|
||||
|
SWEPCo
|
|
2,658.1
|
|
|
2,868.5
|
|
|
2,713.4
|
|
|
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 $862 million as of June 30, 2019. See “Equity Units” section of Note 13 for additional information.
|
|
|
|
June 30, 2019
|
||||||||||||||
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
|
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Restricted Cash and Other Cash Deposits (a)
|
|
$
|
199.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
199.9
|
|
|
Fixed Income Securities – Mutual Funds (b)
|
|
115.0
|
|
|
—
|
|
|
(0.4
|
)
|
|
114.6
|
|
||||
|
Equity Securities – Mutual Funds
|
|
22.7
|
|
|
17.6
|
|
|
—
|
|
|
40.3
|
|
||||
|
Total Other Temporary Investments
|
|
$
|
337.6
|
|
|
$
|
17.6
|
|
|
$
|
(0.4
|
)
|
|
$
|
354.8
|
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
|
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Restricted Cash and Other Cash Deposits (a)
|
|
$
|
230.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
230.6
|
|
|
Fixed Income Securities – Mutual Funds (b)
|
|
106.6
|
|
|
—
|
|
|
(2.3
|
)
|
|
104.3
|
|
||||
|
Equity Securities – Mutual Funds
|
|
17.8
|
|
|
16.4
|
|
|
—
|
|
|
34.2
|
|
||||
|
Total Other Temporary Investments
|
|
$
|
355.0
|
|
|
$
|
16.4
|
|
|
$
|
(2.3
|
)
|
|
$
|
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 June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
|
Proceeds from Investment Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Purchases of Investments
|
8.8
|
|
|
0.8
|
|
|
8.9
|
|
|
1.4
|
|
||||
|
Gross Realized Gains on Investment Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Gross Realized Losses on Investment Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
•
|
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.
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
|
Gross
|
|
Other-Than-
|
|
|
|
Gross
|
|
Other-Than-
|
||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Temporary
|
|
Fair
|
|
Unrealized
|
|
Temporary
|
||||||||||||
|
|
Value
|
|
Gains
|
|
Impairments
|
|
Value
|
|
Gains
|
|
Impairments
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
|
Cash and Cash Equivalents
|
$
|
21.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States Government
|
1,026.8
|
|
|
54.6
|
|
|
(6.3
|
)
|
|
996.1
|
|
|
26.7
|
|
|
(7.1
|
)
|
||||||
|
Corporate Debt
|
62.3
|
|
|
4.6
|
|
|
(1.7
|
)
|
|
52.4
|
|
|
1.1
|
|
|
(1.9
|
)
|
||||||
|
State and Local Government
|
7.6
|
|
|
0.7
|
|
|
(0.2
|
)
|
|
8.6
|
|
|
0.6
|
|
|
(0.2
|
)
|
||||||
|
Subtotal Fixed Income Securities
|
1,096.7
|
|
|
59.9
|
|
|
(8.2
|
)
|
|
1,057.1
|
|
|
28.4
|
|
|
(9.2
|
)
|
||||||
|
Equity Securities - Domestic (a)
|
1,658.6
|
|
|
1,010.2
|
|
|
—
|
|
|
1,395.3
|
|
|
766.3
|
|
|
—
|
|
||||||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
$
|
2,776.4
|
|
|
$
|
1,070.1
|
|
|
$
|
(8.2
|
)
|
|
$
|
2,474.9
|
|
|
$
|
794.7
|
|
|
$
|
(9.2
|
)
|
|
(a)
|
Amount reported as Gross Unrealized Gains includes unrealized gains of $1 billion and $784 million and unrealized losses of $8 million and $18 million as of June 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 June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
Proceeds from Investment Sales
|
|
$
|
87.6
|
|
|
$
|
529.2
|
|
|
$
|
199.5
|
|
|
$
|
1,037.8
|
|
|
Purchases of Investments
|
|
96.3
|
|
|
542.5
|
|
|
226.6
|
|
|
1,067.8
|
|
||||
|
Gross Realized Gains on Investment Sales
|
|
3.4
|
|
|
11.8
|
|
|
15.7
|
|
|
23.8
|
|
||||
|
Gross Realized Losses on Investment Sales
|
|
6.1
|
|
|
7.8
|
|
|
19.9
|
|
|
18.7
|
|
||||
|
|
Fair Value of Fixed
|
||
|
|
Income Securities
|
||
|
|
(in millions)
|
||
|
Within 1 year
|
$
|
335.0
|
|
|
After 1 year through 5 years
|
394.3
|
|
|
|
After 5 years through 10 years
|
181.8
|
|
|
|
After 10 years
|
185.6
|
|
|
|
Total
|
$
|
1,096.7
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash and Other Cash Deposits (a)
|
|
$
|
162.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37.2
|
|
|
$
|
199.9
|
|
|
Fixed Income Securities – Mutual Funds
|
|
114.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
114.6
|
|
|||||
|
Equity Securities – Mutual Funds (b)
|
|
40.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40.3
|
|
|||||
|
Total Other Temporary Investments
|
|
317.6
|
|
|
—
|
|
|
—
|
|
|
37.2
|
|
|
354.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (d)
|
|
7.2
|
|
|
412.8
|
|
|
468.7
|
|
|
(353.2
|
)
|
|
535.5
|
|
|||||
|
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commodity Hedges (c)
|
|
—
|
|
|
6.6
|
|
|
2.0
|
|
|
7.1
|
|
|
15.7
|
|
|||||
|
Fair Value Hedges
|
|
—
|
|
|
11.9
|
|
|
—
|
|
|
—
|
|
|
11.9
|
|
|||||
|
Total Risk Management Assets
|
|
7.2
|
|
|
431.3
|
|
|
470.7
|
|
|
(346.1
|
)
|
|
563.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and Cash Equivalents (e)
|
|
11.5
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
21.1
|
|
|||||
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
United States Government
|
|
—
|
|
|
1,026.8
|
|
|
—
|
|
|
—
|
|
|
1,026.8
|
|
|||||
|
Corporate Debt
|
|
—
|
|
|
62.3
|
|
|
—
|
|
|
—
|
|
|
62.3
|
|
|||||
|
State and Local Government
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|||||
|
Subtotal Fixed Income Securities
|
|
—
|
|
|
1,096.7
|
|
|
—
|
|
|
—
|
|
|
1,096.7
|
|
|||||
|
Equity Securities – Domestic (b)
|
|
1,658.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,658.6
|
|
|||||
|
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
1,670.1
|
|
|
1,096.7
|
|
|
—
|
|
|
9.6
|
|
|
2,776.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
1,994.9
|
|
|
$
|
1,528.0
|
|
|
$
|
470.7
|
|
|
$
|
(299.3
|
)
|
|
$
|
3,694.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (d)
|
|
$
|
7.3
|
|
|
$
|
430.6
|
|
|
$
|
265.3
|
|
|
$
|
(381.2
|
)
|
|
$
|
322.0
|
|
|
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commodity Hedges (c)
|
|
—
|
|
|
68.1
|
|
|
92.7
|
|
|
7.1
|
|
|
167.9
|
|
|||||
|
Total Risk Management Liabilities
|
|
$
|
7.3
|
|
|
$
|
498.7
|
|
|
$
|
358.0
|
|
|
$
|
(374.1
|
)
|
|
$
|
489.9
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash and Other Cash Deposits (a)
|
|
$
|
221.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9.1
|
|
|
$
|
230.6
|
|
|
Fixed Income Securities – Mutual Funds
|
|
104.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104.3
|
|
|||||
|
Equity Securities – Mutual Funds (b)
|
|
34.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.2
|
|
|||||
|
Total Other Temporary Investments
|
|
360.0
|
|
|
—
|
|
|
—
|
|
|
9.1
|
|
|
369.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (f)
|
|
3.8
|
|
|
326.5
|
|
|
340.9
|
|
|
(288.5
|
)
|
|
382.7
|
|
|||||
|
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commodity Hedges (c)
|
|
—
|
|
|
24.1
|
|
|
12.7
|
|
|
(2.7
|
)
|
|
34.1
|
|
|||||
|
Total Risk Management Assets
|
|
3.8
|
|
|
350.6
|
|
|
353.6
|
|
|
(291.2
|
)
|
|
416.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and Cash Equivalents (e)
|
|
12.3
|
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|
22.5
|
|
|||||
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
United States Government
|
|
—
|
|
|
996.1
|
|
|
—
|
|
|
—
|
|
|
996.1
|
|
|||||
|
Corporate Debt
|
|
—
|
|
|
52.4
|
|
|
—
|
|
|
—
|
|
|
52.4
|
|
|||||
|
State and Local Government
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|||||
|
Subtotal Fixed Income Securities
|
|
—
|
|
|
1,057.1
|
|
|
—
|
|
|
—
|
|
|
1,057.1
|
|
|||||
|
Equity Securities – Domestic (b)
|
|
1,395.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,395.3
|
|
|||||
|
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
1,407.6
|
|
|
1,057.1
|
|
|
—
|
|
|
10.2
|
|
|
2,474.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
1,771.4
|
|
|
$
|
1,407.7
|
|
|
$
|
353.6
|
|
|
$
|
(271.9
|
)
|
|
$
|
3,260.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (f)
|
|
$
|
4.2
|
|
|
$
|
327.0
|
|
|
$
|
185.6
|
|
|
$
|
(274.7
|
)
|
|
$
|
242.1
|
|
|
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commodity Hedges (c)
|
|
—
|
|
|
24.8
|
|
|
36.8
|
|
|
(2.7
|
)
|
|
58.9
|
|
|||||
|
Fair Value Hedges
|
|
—
|
|
|
17.4
|
|
|
—
|
|
|
—
|
|
|
17.4
|
|
|||||
|
Total Risk Management Liabilities
|
|
$
|
4.2
|
|
|
$
|
369.2
|
|
|
$
|
222.4
|
|
|
$
|
(277.4
|
)
|
|
$
|
318.4
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash for Securitized Funding
|
|
$
|
125.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c)
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash for Securitized Funding
|
|
$
|
156.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
156.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c)
|
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
0.2
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash for Securitized Funding
|
|
$
|
25.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
—
|
|
|
69.4
|
|
|
75.7
|
|
|
(70.0
|
)
|
|
75.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
25.4
|
|
|
$
|
69.4
|
|
|
$
|
75.7
|
|
|
$
|
(70.0
|
)
|
|
$
|
100.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
70.0
|
|
|
$
|
7.2
|
|
|
$
|
(72.5
|
)
|
|
$
|
4.7
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash for Securitized Funding
|
|
$
|
25.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
0.1
|
|
|
59.1
|
|
|
58.3
|
|
|
(59.4
|
)
|
|
58.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
25.7
|
|
|
$
|
59.1
|
|
|
$
|
58.3
|
|
|
$
|
(59.4
|
)
|
|
$
|
83.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
0.2
|
|
|
$
|
58.4
|
|
|
$
|
0.5
|
|
|
$
|
(58.5
|
)
|
|
$
|
0.6
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
43.7
|
|
|
$
|
15.6
|
|
|
$
|
(43.3
|
)
|
|
$
|
16.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and Cash Equivalents (e)
|
|
11.5
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
21.1
|
|
|||||
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
United States Government
|
|
—
|
|
|
1,026.8
|
|
|
—
|
|
|
—
|
|
|
1,026.8
|
|
|||||
|
Corporate Debt
|
|
—
|
|
|
62.3
|
|
|
—
|
|
|
—
|
|
|
62.3
|
|
|||||
|
State and Local Government
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|||||
|
Subtotal Fixed Income Securities
|
|
—
|
|
|
1,096.7
|
|
|
—
|
|
|
—
|
|
|
1,096.7
|
|
|||||
|
Equity Securities - Domestic (b)
|
|
1,658.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,658.6
|
|
|||||
|
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
1,670.1
|
|
|
1,096.7
|
|
|
—
|
|
|
9.6
|
|
|
2,776.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
1,670.1
|
|
|
$
|
1,140.4
|
|
|
$
|
15.6
|
|
|
$
|
(33.7
|
)
|
|
$
|
2,792.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
42.5
|
|
|
$
|
3.3
|
|
|
$
|
(44.6
|
)
|
|
$
|
1.2
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
42.1
|
|
|
$
|
10.3
|
|
|
$
|
(43.2
|
)
|
|
$
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and Cash Equivalents (e)
|
|
12.3
|
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|
22.5
|
|
|||||
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
United States Government
|
|
—
|
|
|
996.1
|
|
|
—
|
|
|
—
|
|
|
996.1
|
|
|||||
|
Corporate Debt
|
|
—
|
|
|
52.4
|
|
|
—
|
|
|
—
|
|
|
52.4
|
|
|||||
|
State and Local Government
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|||||
|
Subtotal Fixed Income Securities
|
|
—
|
|
|
1,057.1
|
|
|
—
|
|
|
—
|
|
|
1,057.1
|
|
|||||
|
Equity Securities - Domestic (b)
|
|
1,395.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,395.3
|
|
|||||
|
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
1,407.6
|
|
|
1,057.1
|
|
|
—
|
|
|
10.2
|
|
|
2,474.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
1,407.6
|
|
|
$
|
1,099.2
|
|
|
$
|
10.3
|
|
|
$
|
(33.0
|
)
|
|
$
|
2,484.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
0.1
|
|
|
$
|
41.2
|
|
|
$
|
1.4
|
|
|
$
|
(42.3
|
)
|
|
$
|
0.4
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Liabilities:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
111.5
|
|
|
$
|
—
|
|
|
$
|
111.7
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Restricted Cash for Securitized Funding
|
|
$
|
27.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
0.8
|
|
|
$
|
99.4
|
|
|
$
|
(0.6
|
)
|
|
$
|
99.6
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28.4
|
|
|
$
|
(0.4
|
)
|
|
$
|
28.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.6
|
|
|
$
|
(0.4
|
)
|
|
$
|
0.3
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.8
|
|
|
$
|
(0.4
|
)
|
|
$
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
1.3
|
|
|
$
|
(0.6
|
)
|
|
$
|
1.0
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
|
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.6
|
|
|
$
|
(0.8
|
)
|
|
$
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
3.3
|
|
|
$
|
(1.1
|
)
|
|
$
|
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 June 30, 2019 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 2 matures $(10) million in 2019 and $(10) million in periods 2020-2022, $2 million in periods 2023-2024 and $1 million in periods 2025-2032; Level 3 matures $86 million in 2019, $106 million in periods 2020-2022, $23 million in periods 2023-2024 and $(12) 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 $(4) million in 2019, $1 million in periods 2020-2022, $1 million in periods 2023-2024 and $1 million in periods 2025-2032; Level 3 matures $108 million in 2019, $37 million in periods 2020-2022, $23 million in periods 2023-2024 and $(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 June 30, 2019
|
|
AEP
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance as of March 31, 2019
|
|
$
|
38.1
|
|
|
$
|
7.4
|
|
|
$
|
4.4
|
|
|
$
|
(106.1
|
)
|
|
$
|
4.4
|
|
|
$
|
—
|
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
36.5
|
|
|
17.3
|
|
|
3.3
|
|
|
(0.1
|
)
|
|
7.2
|
|
|
2.2
|
|
||||||
|
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
21.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
(53.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Settlements
|
|
(50.6
|
)
|
|
(22.1
|
)
|
|
(6.3
|
)
|
|
1.9
|
|
|
(10.0
|
)
|
|
(3.3
|
)
|
||||||
|
Transfers into Level 3 (c) (d)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Transfers out of Level 3 (d)
|
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
123.7
|
|
|
65.9
|
|
|
10.9
|
|
|
(7.2
|
)
|
|
26.2
|
|
|
9.6
|
|
||||||
|
Balance as of June 30, 2019
|
|
$
|
112.7
|
|
|
$
|
68.5
|
|
|
$
|
12.3
|
|
|
$
|
(111.5
|
)
|
|
$
|
27.8
|
|
|
$
|
8.5
|
|
|
Three Months Ended June 30, 2018
|
|
AEP
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance as of March 31, 2018
|
|
$
|
62.0
|
|
|
$
|
9.1
|
|
|
$
|
2.9
|
|
|
$
|
(98.5
|
)
|
|
$
|
2.8
|
|
|
$
|
0.9
|
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
55.0
|
|
|
36.0
|
|
|
11.8
|
|
|
0.2
|
|
|
6.1
|
|
|
(4.0
|
)
|
||||||
|
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Settlements
|
|
(75.8
|
)
|
|
(43.2
|
)
|
|
(14.6
|
)
|
|
1.3
|
|
|
(8.9
|
)
|
|
2.6
|
|
||||||
|
Transfers into Level 3 (c) (d)
|
|
12.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Transfers out of Level 3 (d)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
122.5
|
|
|
58.1
|
|
|
13.1
|
|
|
10.1
|
|
|
24.3
|
|
|
5.4
|
|
||||||
|
Balance as of June 30, 2018
|
|
$
|
172.3
|
|
|
$
|
60.0
|
|
|
$
|
13.2
|
|
|
$
|
(86.9
|
)
|
|
$
|
24.3
|
|
|
$
|
4.9
|
|
|
Six Months Ended June 30, 2019
|
|
AEP
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance as of December 31, 2018
|
|
$
|
131.2
|
|
|
$
|
57.8
|
|
|
$
|
8.9
|
|
|
$
|
(99.4
|
)
|
|
$
|
9.5
|
|
|
$
|
2.3
|
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
32.7
|
|
|
(13.6
|
)
|
|
4.3
|
|
|
(0.7
|
)
|
|
22.8
|
|
|
16.2
|
|
||||||
|
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
29.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
(69.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Settlements
|
|
(126.6
|
)
|
|
(41.1
|
)
|
|
(11.8
|
)
|
|
3.6
|
|
|
(32.3
|
)
|
|
(20.8
|
)
|
||||||
|
Transfers into Level 3 (c) (d)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Transfers out of Level 3 (d)
|
|
(2.7
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
119.5
|
|
|
66.1
|
|
|
11.3
|
|
|
(15.0
|
)
|
|
27.8
|
|
|
10.8
|
|
||||||
|
Balance as of June 30, 2019
|
|
$
|
112.7
|
|
|
$
|
68.5
|
|
|
$
|
12.3
|
|
|
$
|
(111.5
|
)
|
|
$
|
27.8
|
|
|
$
|
8.5
|
|
|
Six Months Ended June 30, 2018
|
|
AEP
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
|
Balance as of December 31, 2017
|
|
$
|
40.3
|
|
|
$
|
24.7
|
|
|
$
|
7.6
|
|
|
$
|
(132.4
|
)
|
|
$
|
6.2
|
|
|
$
|
5.9
|
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
152.6
|
|
|
104.7
|
|
|
15.1
|
|
|
0.9
|
|
|
18.1
|
|
|
(4.8
|
)
|
||||||
|
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Settlements
|
|
(204.6
|
)
|
|
(128.4
|
)
|
|
(22.1
|
)
|
|
2.5
|
|
|
(24.3
|
)
|
|
(1.3
|
)
|
||||||
|
Transfers into Level 3 (c) (d)
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Transfers out of Level 3 (d)
|
|
(1.5
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
155.2
|
|
|
59.0
|
|
|
12.9
|
|
|
42.1
|
|
|
24.3
|
|
|
5.1
|
|
||||||
|
Balance as of June 30, 2018
|
|
$
|
172.3
|
|
|
$
|
60.0
|
|
|
$
|
13.2
|
|
|
$
|
(86.9
|
)
|
|
$
|
24.3
|
|
|
$
|
4.9
|
|
|
(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
|
$
|
331.6
|
|
|
$
|
340.0
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
$
|
(0.05
|
)
|
|
$
|
113.20
|
|
|
$
|
29.42
|
|
|
Natural Gas Contracts
|
—
|
|
|
3.8
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (b)
|
|
1.96
|
|
|
2.69
|
|
|
2.33
|
|
|||||
|
FTRs
|
139.1
|
|
|
14.2
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
(7.42
|
)
|
|
7.87
|
|
|
0.43
|
|
|||||
|
Total
|
$
|
470.7
|
|
|
$
|
358.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||||
|
|
Fair Value
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
|||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Energy Contracts
|
$
|
257.1
|
|
|
$
|
212.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
$
|
(0.05
|
)
|
|
$
|
176.57
|
|
|
$
|
33.07
|
|
|
Natural Gas Contracts
|
—
|
|
|
2.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (b)
|
|
2.18
|
|
|
3.54
|
|
|
2.47
|
|
|||||
|
FTRs
|
96.5
|
|
|
7.4
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
(11.68
|
)
|
|
17.79
|
|
|
1.09
|
|
|||||
|
Total
|
$
|
353.6
|
|
|
$
|
222.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Energy Contracts
|
$
|
10.1
|
|
|
$
|
2.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
12.55
|
|
|
$
|
45.35
|
|
|
$
|
27.56
|
|
|
FTRs
|
65.6
|
|
|
4.7
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
(0.88
|
)
|
|
6.81
|
|
|
1.37
|
|
|||||
|
Total
|
$
|
75.7
|
|
|
$
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Energy Contracts
|
$
|
2.4
|
|
|
$
|
0.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
16.82
|
|
|
$
|
62.65
|
|
|
$
|
37.00
|
|
|
FTRs
|
55.9
|
|
|
—
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
0.10
|
|
|
15.16
|
|
|
3.27
|
|
|||||
|
Total
|
$
|
58.3
|
|
|
$
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Energy Contracts
|
$
|
5.9
|
|
|
$
|
1.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
12.55
|
|
|
$
|
45.35
|
|
|
$
|
27.56
|
|
|
FTRs
|
9.7
|
|
|
1.8
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
(1.07
|
)
|
|
3.76
|
|
|
0.67
|
|
|||||
|
Total
|
$
|
15.6
|
|
|
$
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Energy Contracts
|
$
|
1.4
|
|
|
$
|
0.9
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
16.82
|
|
|
$
|
62.65
|
|
|
$
|
37.00
|
|
|
FTRs
|
8.9
|
|
|
0.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
(2.11
|
)
|
|
6.21
|
|
|
1.06
|
|
|||||
|
Total
|
$
|
10.3
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Energy Contracts
|
$
|
—
|
|
|
$
|
111.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
25.96
|
|
|
$
|
57.96
|
|
|
$
|
39.66
|
|
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
FTRs
|
$
|
28.4
|
|
|
$
|
0.6
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
(6.94
|
)
|
|
$
|
0.63
|
|
|
$
|
(1.97
|
)
|
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
FTRs
|
$
|
10.8
|
|
|
$
|
1.3
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
(11.68
|
)
|
|
$
|
10.30
|
|
|
$
|
(1.40
|
)
|
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Natural Gas Contracts
|
$
|
—
|
|
|
$
|
3.8
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (b)
|
|
$
|
1.96
|
|
|
$
|
2.69
|
|
|
$
|
2.33
|
|
|
FTRs
|
12.5
|
|
|
0.2
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
(6.94
|
)
|
|
0.63
|
|
|
(1.97
|
)
|
|||||
|
Total
|
$
|
12.5
|
|
|
$
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Natural Gas Contracts
|
$
|
—
|
|
|
$
|
2.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (b)
|
|
$
|
2.18
|
|
|
$
|
3.54
|
|
|
$
|
2.47
|
|
|
FTRs
|
5.6
|
|
|
0.8
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
(11.68
|
)
|
|
10.30
|
|
|
(1.40
|
)
|
|||||
|
Total
|
$
|
5.6
|
|
|
$
|
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 June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
AEP
|
|
(13.5
|
)%
|
|
12.0
|
%
|
|
(1.0
|
)%
|
|
15.0
|
%
|
|
AEP Texas
|
|
(234.4
|
)%
|
|
16.2
|
%
|
|
(84.0
|
)%
|
|
16.2
|
%
|
|
AEPTCo
|
|
19.5
|
%
|
|
22.7
|
%
|
|
20.1
|
%
|
|
21.7
|
%
|
|
APCo
|
|
(52.1
|
)%
|
|
17.0
|
%
|
|
(29.5
|
)%
|
|
17.8
|
%
|
|
I&M
|
|
(0.2
|
)%
|
|
0.7
|
%
|
|
(1.8
|
)%
|
|
7.6
|
%
|
|
OPCo
|
|
16.4
|
%
|
|
21.6
|
%
|
|
14.3
|
%
|
|
21.0
|
%
|
|
PSO
|
|
0.7
|
%
|
|
14.9
|
%
|
|
0.6
|
%
|
|
14.5
|
%
|
|
SWEPCo
|
|
—
|
%
|
|
12.4
|
%
|
|
2.0
|
%
|
|
14.0
|
%
|
|
Three Months Ended June 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Operating Lease Cost
|
|
$
|
71.3
|
|
|
$
|
4.4
|
|
|
$
|
0.5
|
|
|
$
|
5.0
|
|
|
$
|
23.3
|
|
|
$
|
5.3
|
|
|
$
|
2.0
|
|
|
$
|
2.1
|
|
|
Finance Lease Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Amortization of Right-of-Use Assets
|
|
14.3
|
|
|
1.2
|
|
|
—
|
|
|
1.5
|
|
|
1.3
|
|
|
0.8
|
|
|
0.7
|
|
|
2.7
|
|
||||||||
|
Interest on Lease Liabilities
|
|
4.0
|
|
|
0.4
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
|
0.1
|
|
|
0.2
|
|
|
0.7
|
|
||||||||
|
Total Lease Rental Costs (a)
|
|
$
|
89.6
|
|
|
$
|
6.0
|
|
|
$
|
0.5
|
|
|
$
|
7.2
|
|
|
$
|
25.3
|
|
|
$
|
6.2
|
|
|
$
|
2.9
|
|
|
$
|
5.5
|
|
|
Six Months Ended June 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Operating Lease Cost
|
|
$
|
135.9
|
|
|
$
|
8.2
|
|
|
$
|
1.1
|
|
|
$
|
9.6
|
|
|
$
|
46.3
|
|
|
$
|
8.9
|
|
|
$
|
3.5
|
|
|
$
|
3.9
|
|
|
Finance Lease Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Amortization of Right-of-Use Assets
|
|
28.5
|
|
|
2.3
|
|
|
—
|
|
|
3.0
|
|
|
2.6
|
|
|
1.5
|
|
|
1.4
|
|
|
5.4
|
|
||||||||
|
Interest on Lease Liabilities
|
|
8.1
|
|
|
0.7
|
|
|
—
|
|
|
1.4
|
|
|
1.5
|
|
|
0.3
|
|
|
0.3
|
|
|
1.5
|
|
||||||||
|
Total Lease Rental Costs (a)
|
|
$
|
172.5
|
|
|
$
|
11.2
|
|
|
$
|
1.1
|
|
|
$
|
14.0
|
|
|
$
|
50.4
|
|
|
$
|
10.7
|
|
|
$
|
5.2
|
|
|
$
|
10.8
|
|
|
(a)
|
Excludes variable and short-term lease costs, which were immaterial for the three and six months ended June 30, 2019.
|
|
June 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||
|
Weighted-Average Remaining Lease Term (years):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Leases
|
|
5.45
|
|
|
7.19
|
|
|
2.53
|
|
|
6.34
|
|
|
4.25
|
|
|
8.19
|
|
|
7.12
|
|
|
6.67
|
|
|
Finance Leases
|
|
5.88
|
|
|
7.00
|
|
|
0.83
|
|
|
6.26
|
|
|
6.79
|
|
|
6.42
|
|
|
6.02
|
|
|
5.44
|
|
|
Weighted-Average Discount Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Leases
|
|
3.63
|
%
|
|
3.82
|
%
|
|
3.15
|
%
|
|
3.68
|
%
|
|
3.46
|
%
|
|
3.83
|
%
|
|
3.71
|
%
|
|
3.87
|
%
|
|
Finance Leases
|
|
6.16
|
%
|
|
4.79
|
%
|
|
9.33
|
%
|
|
8.55
|
%
|
|
8.97
|
%
|
|
4.80
|
%
|
|
4.77
|
%
|
|
5.01
|
%
|
|
Six Months Ended June 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 from Operating Leases
|
|
$
|
132.3
|
|
|
$
|
7.5
|
|
|
$
|
1.1
|
|
|
$
|
9.5
|
|
|
$
|
47.0
|
|
|
$
|
8.5
|
|
|
$
|
3.2
|
|
|
$
|
3.7
|
|
|
Operating Cash Flows from Finance Leases
|
|
8.1
|
|
|
0.7
|
|
|
—
|
|
|
1.4
|
|
|
1.5
|
|
|
0.3
|
|
|
0.3
|
|
|
1.5
|
|
||||||||
|
Financing Cash Flows from Finance Leases
|
|
29.6
|
|
|
2.5
|
|
|
—
|
|
|
3.1
|
|
|
2.7
|
|
|
1.8
|
|
|
1.5
|
|
|
5.5
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Non-cash Acquisitions Under Operating Leases
|
|
$
|
84.2
|
|
|
$
|
10.7
|
|
|
$
|
—
|
|
|
$
|
7.0
|
|
|
$
|
11.3
|
|
|
$
|
30.0
|
|
|
$
|
6.2
|
|
|
$
|
7.5
|
|
|
June 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Property, Plant and Equipment Under Finance Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Generation
|
|
$
|
131.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38.6
|
|
|
$
|
27.0
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
|
$
|
34.3
|
|
|
Other Property, Plant and Equipment
|
|
325.5
|
|
|
40.9
|
|
|
0.2
|
|
|
20.4
|
|
|
35.4
|
|
|
23.0
|
|
|
19.1
|
|
|
48.3
|
|
||||||||
|
Total Property, Plant and Equipment
|
|
456.7
|
|
|
40.9
|
|
|
0.2
|
|
|
59.0
|
|
|
62.4
|
|
|
23.0
|
|
|
21.7
|
|
|
82.6
|
|
||||||||
|
Accumulated Amortization
|
|
154.3
|
|
|
10.6
|
|
|
0.1
|
|
|
16.7
|
|
|
22.0
|
|
|
6.5
|
|
|
8.6
|
|
|
22.8
|
|
||||||||
|
Net Property, Plant and Equipment Under Finance Leases
|
|
$
|
302.4
|
|
|
$
|
30.3
|
|
|
$
|
0.1
|
|
|
$
|
42.3
|
|
|
$
|
40.4
|
|
|
$
|
16.5
|
|
|
$
|
13.1
|
|
|
$
|
59.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Obligations Under Finance Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Noncurrent Liability
|
|
$
|
247.1
|
|
|
$
|
25.3
|
|
|
$
|
—
|
|
|
$
|
35.7
|
|
|
$
|
34.9
|
|
|
$
|
13.2
|
|
|
$
|
10.0
|
|
|
$
|
49.7
|
|
|
Liability Due Within One Year
|
|
59.6
|
|
|
5.0
|
|
|
0.1
|
|
|
6.6
|
|
|
5.5
|
|
|
3.3
|
|
|
3.1
|
|
|
10.9
|
|
||||||||
|
Total Obligations Under Finance Leases
|
|
$
|
306.7
|
|
|
$
|
30.3
|
|
|
$
|
0.1
|
|
|
$
|
42.3
|
|
|
$
|
40.4
|
|
|
$
|
16.5
|
|
|
$
|
13.1
|
|
|
$
|
60.6
|
|
|
June 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Operating Lease Assets
|
|
$
|
1,016.5
|
|
|
$
|
80.9
|
|
|
$
|
5.4
|
|
|
$
|
78.3
|
|
|
$
|
312.6
|
|
|
$
|
88.2
|
|
|
$
|
35.1
|
|
|
$
|
37.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Obligations Under Operating Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Noncurrent Liability
|
|
$
|
797.2
|
|
|
$
|
69.9
|
|
|
$
|
2.8
|
|
|
$
|
63.8
|
|
|
$
|
234.7
|
|
|
$
|
75.4
|
|
|
$
|
29.3
|
|
|
$
|
31.5
|
|
|
Liability Due Within One Year
|
|
229.2
|
|
|
11.6
|
|
|
2.6
|
|
|
14.9
|
|
|
82.2
|
|
|
13.2
|
|
|
5.9
|
|
|
6.0
|
|
||||||||
|
Total Obligations Under Operating Leases
|
|
$
|
1,026.4
|
|
|
$
|
81.5
|
|
|
$
|
5.4
|
|
|
$
|
78.7
|
|
|
$
|
316.9
|
|
|
$
|
88.6
|
|
|
$
|
35.2
|
|
|
$
|
37.5
|
|
|
Finance Leases
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Year 1
|
|
$
|
75.1
|
|
|
$
|
6.3
|
|
|
$
|
0.1
|
|
|
$
|
9.5
|
|
|
$
|
8.5
|
|
|
$
|
4.0
|
|
|
$
|
3.6
|
|
|
$
|
13.1
|
|
|
Year 2
|
|
65.0
|
|
|
5.9
|
|
|
—
|
|
|
8.7
|
|
|
7.8
|
|
|
3.6
|
|
|
2.9
|
|
|
11.4
|
|
||||||||
|
Year 3
|
|
56.2
|
|
|
5.2
|
|
|
—
|
|
|
7.9
|
|
|
7.1
|
|
|
3.0
|
|
|
2.2
|
|
|
10.6
|
|
||||||||
|
Year 4
|
|
47.4
|
|
|
4.7
|
|
|
—
|
|
|
7.4
|
|
|
6.6
|
|
|
2.3
|
|
|
1.8
|
|
|
9.4
|
|
||||||||
|
Year 5
|
|
44.2
|
|
|
4.0
|
|
|
—
|
|
|
6.9
|
|
|
6.3
|
|
|
1.9
|
|
|
1.5
|
|
|
12.8
|
|
||||||||
|
Later Years
|
|
84.0
|
|
|
10.2
|
|
|
—
|
|
|
13.0
|
|
|
21.6
|
|
|
4.8
|
|
|
3.4
|
|
|
10.6
|
|
||||||||
|
Total Future Minimum Lease Payments
|
|
371.9
|
|
|
36.3
|
|
|
0.1
|
|
|
53.4
|
|
|
57.9
|
|
|
19.6
|
|
|
15.4
|
|
|
67.9
|
|
||||||||
|
Less Imputed Interest
|
|
65.2
|
|
|
6.0
|
|
|
—
|
|
|
11.1
|
|
|
17.5
|
|
|
3.1
|
|
|
2.3
|
|
|
7.3
|
|
||||||||
|
Estimated Present Value of Future Minimum Lease Payments
|
|
$
|
306.7
|
|
|
$
|
30.3
|
|
|
$
|
0.1
|
|
|
$
|
42.3
|
|
|
$
|
40.4
|
|
|
$
|
16.5
|
|
|
$
|
13.1
|
|
|
$
|
60.6
|
|
|
Operating Leases
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
Year 1
|
|
$
|
265.4
|
|
|
$
|
15.3
|
|
|
$
|
2.8
|
|
|
$
|
18.0
|
|
|
$
|
92.5
|
|
|
$
|
16.4
|
|
|
$
|
7.0
|
|
|
$
|
8.0
|
|
|
Year 2
|
|
253.1
|
|
|
14.7
|
|
|
1.7
|
|
|
16.1
|
|
|
89.4
|
|
|
14.3
|
|
|
6.4
|
|
|
7.9
|
|
||||||||
|
Year 3
|
|
237.7
|
|
|
13.6
|
|
|
0.7
|
|
|
14.3
|
|
|
86.0
|
|
|
12.9
|
|
|
5.6
|
|
|
7.1
|
|
||||||||
|
Year 4
|
|
154.4
|
|
|
12.6
|
|
|
0.5
|
|
|
12.6
|
|
|
48.3
|
|
|
12.1
|
|
|
5.2
|
|
|
6.7
|
|
||||||||
|
Year 5
|
|
63.0
|
|
|
11.1
|
|
|
—
|
|
|
9.6
|
|
|
7.7
|
|
|
10.5
|
|
|
4.6
|
|
|
5.4
|
|
||||||||
|
Later Years
|
|
182.6
|
|
|
28.4
|
|
|
—
|
|
|
19.8
|
|
|
21.9
|
|
|
38.9
|
|
|
12.0
|
|
|
11.4
|
|
||||||||
|
Total Future Minimum Lease Payments
|
|
1,156.2
|
|
|
95.7
|
|
|
5.7
|
|
|
90.4
|
|
|
345.8
|
|
|
105.1
|
|
|
40.8
|
|
|
46.5
|
|
||||||||
|
Less Imputed Interest
|
|
129.8
|
|
|
14.2
|
|
|
0.3
|
|
|
11.7
|
|
|
28.9
|
|
|
16.5
|
|
|
5.6
|
|
|
9.0
|
|
||||||||
|
Estimated Present Value of Future Minimum Lease Payments
|
|
$
|
1,026.4
|
|
|
$
|
81.5
|
|
|
$
|
5.4
|
|
|
$
|
78.7
|
|
|
$
|
316.9
|
|
|
$
|
88.6
|
|
|
$
|
35.2
|
|
|
$
|
37.5
|
|
|
Finance Leases
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
2019
|
|
$
|
70.8
|
|
|
$
|
5.8
|
|
|
$
|
0.1
|
|
|
$
|
9.0
|
|
|
$
|
8.2
|
|
|
$
|
3.3
|
|
|
$
|
3.4
|
|
|
$
|
13.1
|
|
|
2020
|
|
60.2
|
|
|
5.3
|
|
|
—
|
|
|
8.0
|
|
|
7.2
|
|
|
2.7
|
|
|
2.6
|
|
|
11.5
|
|
||||||||
|
2021
|
|
51.7
|
|
|
4.7
|
|
|
—
|
|
|
7.3
|
|
|
6.6
|
|
|
2.3
|
|
|
2.0
|
|
|
10.5
|
|
||||||||
|
2022
|
|
43.8
|
|
|
4.2
|
|
|
—
|
|
|
6.8
|
|
|
6.1
|
|
|
1.7
|
|
|
1.6
|
|
|
9.4
|
|
||||||||
|
2023
|
|
35.5
|
|
|
3.7
|
|
|
—
|
|
|
6.3
|
|
|
5.7
|
|
|
1.2
|
|
|
1.4
|
|
|
8.6
|
|
||||||||
|
Later Years
|
|
90.2
|
|
|
10.1
|
|
|
—
|
|
|
13.3
|
|
|
21.7
|
|
|
2.8
|
|
|
3.3
|
|
|
18.7
|
|
||||||||
|
Total Future Minimum Lease Payments
|
|
352.2
|
|
|
33.8
|
|
|
0.1
|
|
|
50.7
|
|
|
55.5
|
|
|
14.0
|
|
|
14.3
|
|
|
71.8
|
|
||||||||
|
Less Imputed Interest
|
|
63.2
|
|
|
5.3
|
|
|
—
|
|
|
10.9
|
|
|
16.8
|
|
|
1.9
|
|
|
2.0
|
|
|
11.0
|
|
||||||||
|
Estimated Present Value of Future Minimum Lease Payments
|
|
$
|
289.0
|
|
|
$
|
28.5
|
|
|
$
|
0.1
|
|
|
$
|
39.8
|
|
|
$
|
38.7
|
|
|
$
|
12.1
|
|
|
$
|
12.3
|
|
|
$
|
60.8
|
|
|
Operating Leases
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||||||
|
2019
|
|
$
|
259.6
|
|
|
$
|
15.1
|
|
|
$
|
2.3
|
|
|
$
|
17.6
|
|
|
$
|
92.6
|
|
|
$
|
14.5
|
|
|
$
|
6.5
|
|
|
$
|
7.4
|
|
|
2020
|
|
250.1
|
|
|
14.1
|
|
|
1.8
|
|
|
16.5
|
|
|
89.3
|
|
|
13.2
|
|
|
6.0
|
|
|
7.2
|
|
||||||||
|
2021
|
|
232.7
|
|
|
13.2
|
|
|
1.0
|
|
|
13.9
|
|
|
84.8
|
|
|
10.9
|
|
|
5.0
|
|
|
6.7
|
|
||||||||
|
2022
|
|
222.5
|
|
|
12.2
|
|
|
0.5
|
|
|
12.8
|
|
|
83.8
|
|
|
10.0
|
|
|
4.6
|
|
|
6.1
|
|
||||||||
|
2023
|
|
58.3
|
|
|
10.8
|
|
|
0.1
|
|
|
9.9
|
|
|
6.5
|
|
|
8.8
|
|
|
4.1
|
|
|
5.0
|
|
||||||||
|
Later Years
|
|
165.2
|
|
|
28.4
|
|
|
—
|
|
|
20.5
|
|
|
19.5
|
|
|
31.7
|
|
|
10.7
|
|
|
11.7
|
|
||||||||
|
Total Future Minimum Lease Payments
|
|
$
|
1,188.4
|
|
|
$
|
93.8
|
|
|
$
|
5.7
|
|
|
$
|
91.2
|
|
|
$
|
376.5
|
|
|
$
|
89.1
|
|
|
$
|
36.9
|
|
|
$
|
44.1
|
|
|
Company
|
|
Maximum
Potential Loss
|
||
|
|
|
(in millions)
|
||
|
AEP
|
|
$
|
46.1
|
|
|
AEP Texas
|
|
10.9
|
|
|
|
APCo
|
|
6.1
|
|
|
|
I&M
|
|
4.0
|
|
|
|
OPCo
|
|
7.7
|
|
|
|
PSO
|
|
4.1
|
|
|
|
SWEPCo
|
|
4.4
|
|
|
|
Future Minimum Lease Payments
|
|
AEP (a)
|
|
I&M
|
||||
|
|
|
(in millions)
|
||||||
|
2019
|
|
$
|
74.2
|
|
|
$
|
37.1
|
|
|
2020
|
|
147.8
|
|
|
73.9
|
|
||
|
2021
|
|
147.8
|
|
|
73.9
|
|
||
|
2022
|
|
147.2
|
|
|
73.6
|
|
||
|
Total Future Minimum Lease Payments
|
|
$
|
517.0
|
|
|
$
|
258.5
|
|
|
(a)
|
AEP’s future minimum lease payments include equal shares from AEGCo and I&M.
|
|
Type of Debt
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(in millions)
|
||||||
|
Senior Unsecured Notes
|
|
$
|
20,468.9
|
|
|
$
|
18,903.3
|
|
|
Pollution Control Bonds
|
|
1,518.1
|
|
|
1,643.8
|
|
||
|
Notes Payable
|
|
216.9
|
|
|
204.7
|
|
||
|
Securitization Bonds
|
|
945.2
|
|
|
1,111.4
|
|
||
|
Spent Nuclear Fuel Obligation (a)
|
|
277.0
|
|
|
273.6
|
|
||
|
Junior Subordinated Notes (b)
|
|
786.1
|
|
|
—
|
|
||
|
Other Long-term Debt
|
|
1,219.6
|
|
|
1,209.9
|
|
||
|
Total Long-term Debt Outstanding
|
|
25,431.8
|
|
|
23,346.7
|
|
||
|
Long-term Debt Due Within One Year
|
|
1,257.4
|
|
|
1,698.5
|
|
||
|
Long-term Debt
|
|
$
|
24,174.4
|
|
|
$
|
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 $320 million and $317 million as of June 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)
|
|
$
|
805.0
|
|
|
3.40
|
|
2024
|
|
AEP Texas
|
|
Senior Unsecured Notes
|
|
300.0
|
|
|
4.15
|
|
2049
|
|
|
AEPTCo
|
|
Senior Unsecured Notes
|
|
350.0
|
|
|
3.80
|
|
2049
|
|
|
APCo
|
|
Pollution Control Bonds
|
|
86.0
|
|
|
2.55
|
|
2024
|
|
|
APCo
|
|
Senior Unsecured Notes
|
|
400.0
|
|
|
4.50
|
|
2049
|
|
|
I&M
|
|
Notes Payable
|
|
62.8
|
|
|
Variable
|
|
2023
|
|
|
OPCo
|
|
Senior Unsecured Notes
|
|
450.0
|
|
|
4.00
|
|
2049
|
|
|
PSO
|
|
Senior Unsecured Notes
|
|
100.0
|
|
|
3.91
|
|
2029
|
|
|
PSO
|
|
Senior Unsecured Notes
|
|
150.0
|
|
|
4.11
|
|
2034
|
|
|
PSO
|
|
Senior Unsecured Notes
|
|
100.0
|
|
|
4.50
|
|
2049
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Non-Registrant:
|
|
|
|
|
|
|
|
|
||
|
Transource Energy
|
|
Other Long-term Debt
|
|
12.6
|
|
|
Variable
|
|
2020
|
|
|
Total Issuances
|
|
|
|
$
|
2,816.4
|
|
|
|
|
|
|
(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
|
|
$
|
50.0
|
|
|
2.61
|
|
2019
|
|
AEP Texas
|
|
Securitization Bonds
|
|
103.5
|
|
|
5.31
|
|
2020
|
|
|
AEP Texas
|
|
Securitization Bonds
|
|
28.3
|
|
|
1.98
|
|
2020
|
|
|
APCo
|
|
Pollution Control Bonds
|
|
86.0
|
|
|
1.90
|
|
2019
|
|
|
APCo
|
|
Pollution Control Bonds
|
|
70.0
|
|
|
3.25
|
|
2019
|
|
|
APCo
|
|
Securitization Bonds
|
|
12.0
|
|
|
2.01
|
|
2023
|
|
|
I&M
|
|
Notes Payable
|
|
2.7
|
|
|
Variable
|
|
2019
|
|
|
I&M
|
|
Notes Payable
|
|
2.9
|
|
|
Variable
|
|
2019
|
|
|
I&M
|
|
Notes Payable
|
|
13.1
|
|
|
Variable
|
|
2020
|
|
|
I&M
|
|
Notes Payable
|
|
11.9
|
|
|
Variable
|
|
2021
|
|
|
I&M
|
|
Notes Payable
|
|
6.2
|
|
|
Variable
|
|
2022
|
|
|
I&M
|
|
Notes Payable
|
|
10.6
|
|
|
Variable
|
|
2022
|
|
|
I&M
|
|
Notes Payable
|
|
0.1
|
|
|
Variable
|
|
2023
|
|
|
I&M
|
|
Other Long-term Debt
|
|
0.8
|
|
|
6.00
|
|
2025
|
|
|
OPCo
|
|
Securitization Bonds
|
|
23.3
|
|
|
2.05
|
|
2019
|
|
|
OPCo
|
|
Other Long-term Debt
|
|
0.1
|
|
|
1.15
|
|
2028
|
|
|
PSO
|
|
Senior Unsecured Notes
|
|
250.0
|
|
|
5.15
|
|
2019
|
|
|
PSO
|
|
Other Long-term Debt
|
|
0.2
|
|
|
3.00
|
|
2027
|
|
|
SWEPCo
|
|
Pollution Control Bonds
|
|
53.5
|
|
|
1.60
|
|
2019
|
|
|
SWEPCo
|
|
Other Long-term Debt
|
|
1.5
|
|
|
4.68
|
|
2028
|
|
|
SWEPCo
|
|
Notes Payable
|
|
1.6
|
|
|
4.58
|
|
2032
|
|
|
Total Retirements and Principal Payments
|
|
|
|
$
|
728.3
|
|
|
|
|
|
|
•
|
If the AEP common stock market price is equal to or greater than $99.58: 0.5021 shares per contract.
|
|
•
|
If the AEP common stock market price is less than $99.58 but greater than $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: 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
|
|
June 30, 2019
|
|
Limit
|
|
||||||||||||
|
|
|
(in millions)
|
|||||||||||||||||||||||
|
AEP Texas
|
|
$
|
390.7
|
|
|
$
|
—
|
|
|
$
|
262.7
|
|
|
$
|
—
|
|
|
$
|
(239.0
|
)
|
|
$
|
500.0
|
|
|
|
AEPTCo
|
|
374.9
|
|
|
80.0
|
|
|
215.7
|
|
|
29.2
|
|
|
14.7
|
|
|
795.0
|
|
(a)
|
||||||
|
APCo
|
|
225.4
|
|
|
232.2
|
|
|
146.3
|
|
|
82.2
|
|
|
(3.4
|
)
|
|
600.0
|
|
|
||||||
|
I&M
|
|
98.2
|
|
|
66.0
|
|
|
32.0
|
|
|
19.3
|
|
|
(81.7
|
)
|
|
500.0
|
|
|
||||||
|
OPCo
|
|
291.2
|
|
|
178.6
|
|
|
194.4
|
|
|
98.8
|
|
|
63.9
|
|
|
500.0
|
|
|
||||||
|
PSO
|
|
140.5
|
|
|
215.6
|
|
|
67.3
|
|
|
206.2
|
|
|
(22.6
|
)
|
|
300.0
|
|
|
||||||
|
SWEPCo
|
|
105.1
|
|
|
81.4
|
|
|
67.0
|
|
|
24.0
|
|
|
(55.3
|
)
|
|
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
|
|
June 30, 2019
|
||||||
|
|
(in millions)
|
|||||||||||
|
AEP Texas
|
|
$
|
8.0
|
|
|
$
|
7.7
|
|
|
$
|
7.7
|
|
|
SWEPCo
|
|
2.0
|
|
|
2.0
|
|
|
2.0
|
|
|||
|
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
|
|
June 30, 2019
|
|
June 30, 2019
|
|
Borrowing Limit
|
|
||||||||||||||
|
(in millions)
|
|||||||||||||||||||||||||||
|
$
|
1.3
|
|
|
$
|
117.6
|
|
|
$
|
1.3
|
|
|
$
|
63.3
|
|
|
$
|
1.3
|
|
|
$
|
17.3
|
|
|
$
|
75.0
|
|
(a)
|
|
(a)
|
Amount represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions.
|
|
|
|
Six Months Ended June 30,
|
||||
|
|
|
2019
|
|
2018
|
||
|
Maximum Interest Rate
|
|
3.02
|
%
|
|
2.52
|
%
|
|
Minimum Interest Rate
|
|
2.68
|
%
|
|
1.83
|
%
|
|
|
|
Average Interest Rate for Funds
|
|
Average Interest Rate for Funds
|
||||||||
|
|
|
Borrowed from the Utility Money Pool
|
|
Loaned to the Utility Money Pool
|
||||||||
|
|
|
for Six Months Ended June 30,
|
|
for Six Months Ended June 30,
|
||||||||
|
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
AEP Texas
|
|
2.81
|
%
|
|
2.28
|
%
|
|
—
|
%
|
|
2.28
|
%
|
|
AEPTCo
|
|
2.78
|
%
|
|
2.30
|
%
|
|
2.83
|
%
|
|
2.06
|
%
|
|
APCo
|
|
2.91
|
%
|
|
2.23
|
%
|
|
2.77
|
%
|
|
2.23
|
%
|
|
I&M
|
|
2.74
|
%
|
|
2.16
|
%
|
|
2.82
|
%
|
|
2.37
|
%
|
|
OPCo
|
|
2.81
|
%
|
|
2.24
|
%
|
|
2.73
|
%
|
|
2.47
|
%
|
|
PSO
|
|
2.85
|
%
|
|
2.24
|
%
|
|
2.74
|
%
|
|
—
|
%
|
|
SWEPCo
|
|
2.77
|
%
|
|
2.34
|
%
|
|
2.97
|
%
|
|
1.88
|
%
|
|
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 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
|
|
3.02
|
%
|
|
2.68
|
%
|
|
2.81
|
%
|
|
2.52
|
%
|
|
1.83
|
%
|
|
2.23
|
%
|
|
SWEPCo
|
|
3.02
|
%
|
|
2.68
|
%
|
|
2.81
|
%
|
|
2.52
|
%
|
|
1.83
|
%
|
|
2.23
|
%
|
|
|
|
Maximum
|
|
Minimum
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Average
|
||||||
|
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
||||||
|
Six Months
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
||||||
|
Ended
|
|
Borrowed
|
|
Borrowed
|
|
Loaned
|
|
Loaned
|
|
Borrowed
|
|
Loaned
|
||||||
|
June 30,
|
|
from AEP
|
|
from AEP
|
to AEP
|
|
to AEP
|
|
from AEP
|
|
to AEP
|
|||||||
|
2019
|
|
3.02
|
%
|
|
2.68
|
%
|
|
3.02
|
%
|
|
2.68
|
%
|
|
2.81
|
%
|
|
2.80
|
%
|
|
2018
|
|
2.52
|
%
|
|
1.83
|
%
|
|
2.52
|
%
|
|
1.83
|
%
|
|
2.23
|
%
|
|
2.23
|
%
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
|
Outstanding
|
|
Interest
|
|
Outstanding
|
|
Interest
|
||||||
|
Type of Debt
|
|
Amount
|
|
Rate (a)
|
|
Amount
|
|
Rate (a)
|
||||||
|
|
|
(dollars in millions)
|
||||||||||||
|
Securitized Debt for Receivables (b)
|
|
$
|
692.0
|
|
|
2.66
|
%
|
|
$
|
750.0
|
|
|
2.16
|
%
|
|
Commercial Paper
|
|
1,585.0
|
|
|
2.67
|
%
|
|
1,160.0
|
|
|
2.96
|
%
|
||
|
Total Short-term Debt
|
|
$
|
2,277.0
|
|
|
|
|
|
$
|
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
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(dollars in millions)
|
||||||||||||||
|
Effective Interest Rates on Securitization of Accounts Receivable
|
|
2.60
|
%
|
|
2.16
|
%
|
|
2.66
|
%
|
|
1.95
|
%
|
||||
|
Net Uncollectible Accounts Receivable Written-Off
|
|
$
|
4.6
|
|
|
$
|
5.3
|
|
|
$
|
11.0
|
|
|
$
|
9.4
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(in millions)
|
||||||
|
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts
|
|
$
|
907.8
|
|
|
$
|
972.5
|
|
|
Short-term – Securitized Debt of Receivables
|
|
692.0
|
|
|
750.0
|
|
||
|
Delinquent Securitized Accounts Receivable
|
|
49.9
|
|
|
50.3
|
|
||
|
Bad Debt Reserves Related to Securitization
|
|
32.5
|
|
|
27.5
|
|
||
|
Unbilled Receivables Related to Securitization
|
|
298.5
|
|
|
281.4
|
|
||
|
Company
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(in millions)
|
||||||
|
APCo
|
|
$
|
114.2
|
|
|
$
|
133.3
|
|
|
I&M
|
|
153.6
|
|
|
152.9
|
|
||
|
OPCo
|
|
342.9
|
|
|
395.2
|
|
||
|
PSO
|
|
127.7
|
|
|
109.7
|
|
||
|
SWEPCo
|
|
153.7
|
|
|
150.3
|
|
||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
APCo
|
|
$
|
2.4
|
|
|
$
|
1.6
|
|
|
$
|
4.6
|
|
|
$
|
3.3
|
|
|
I&M
|
|
3.2
|
|
|
2.2
|
|
|
6.0
|
|
|
4.3
|
|
||||
|
OPCo
|
|
7.9
|
|
|
6.0
|
|
|
15.7
|
|
|
11.6
|
|
||||
|
PSO
|
|
2.1
|
|
|
1.9
|
|
|
4.2
|
|
|
3.7
|
|
||||
|
SWEPCo
|
|
3.4
|
|
|
2.1
|
|
|
6.0
|
|
|
4.0
|
|
||||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
|
APCo
|
|
$
|
300.8
|
|
|
$
|
344.9
|
|
|
$
|
675.2
|
|
|
$
|
745.1
|
|
|
I&M
|
|
415.0
|
|
|
444.2
|
|
|
893.6
|
|
|
903.3
|
|
||||
|
OPCo
|
|
506.7
|
|
|
671.7
|
|
|
1,143.5
|
|
|
1,351.7
|
|
||||
|
PSO
|
|
342.6
|
|
|
383.7
|
|
|
667.1
|
|
|
716.4
|
|
||||
|
SWEPCo
|
|
394.5
|
|
|
454.5
|
|
|
766.4
|
|
|
852.0
|
|
||||
|
|
|
Three Months Ended June 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
|
|
$
|
755.0
|
|
|
$
|
435.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,190.0
|
|
|
Commercial Revenues
|
|
517.5
|
|
|
287.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
805.1
|
|
|||||||
|
Industrial Revenues
|
|
549.2
|
|
|
109.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
655.3
|
|
|||||||
|
Other Retail Revenues
|
|
43.6
|
|
|
11.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54.7
|
|
|||||||
|
Total Retail Revenues
|
|
1,865.3
|
|
|
843.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
2,705.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (a)
|
|
205.9
|
|
|
—
|
|
|
—
|
|
|
299.7
|
|
|
—
|
|
|
7.2
|
|
|
512.8
|
|
|||||||
|
Transmission Revenues (b)
|
|
64.1
|
|
|
113.5
|
|
|
289.8
|
|
|
—
|
|
|
—
|
|
|
(173.6
|
)
|
|
293.8
|
|
|||||||
|
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106.9
|
|
|
—
|
|
|
—
|
|
|
106.9
|
|
|||||||
|
Total Wholesale and Competitive Retail Revenues
|
|
270.0
|
|
|
113.5
|
|
|
289.8
|
|
|
406.6
|
|
|
—
|
|
|
(166.4
|
)
|
|
913.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (c)
|
|
42.0
|
|
|
38.7
|
|
|
5.0
|
|
|
(12.6
|
)
|
|
21.5
|
|
|
(35.3
|
)
|
|
59.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
2,177.3
|
|
|
995.3
|
|
|
294.8
|
|
|
394.0
|
|
|
21.5
|
|
|
(205.0
|
)
|
|
3,677.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (c)
|
|
(53.5
|
)
|
|
11.4
|
|
|
(15.9
|
)
|
|
—
|
|
|
—
|
|
|
(36.9
|
)
|
|
(94.9
|
)
|
|||||||
|
Other Revenues (c)
|
|
—
|
|
|
39.0
|
|
|
—
|
|
|
18.7
|
|
|
2.3
|
|
|
(69.4
|
)
|
|
(9.4
|
)
|
|||||||
|
Total Other Revenues
|
|
(53.5
|
)
|
|
50.4
|
|
|
(15.9
|
)
|
|
18.7
|
|
|
2.3
|
|
|
(106.3
|
)
|
|
(104.3
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
2,123.8
|
|
|
$
|
1,045.7
|
|
|
$
|
278.9
|
|
|
$
|
412.7
|
|
|
$
|
23.8
|
|
|
$
|
(311.3
|
)
|
|
$
|
3,573.6
|
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing is $34 million. The remaining affiliated amounts are immaterial.
|
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $201 million. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
|
Three Months Ended June 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
|
|
$
|
857.0
|
|
|
$
|
530.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,387.9
|
|
|
Commercial Revenues
|
|
551.9
|
|
|
320.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
872.0
|
|
|||||||
|
Industrial Revenues
|
|
570.7
|
|
|
134.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
704.9
|
|
|||||||
|
Other Retail Revenues
|
|
46.4
|
|
|
10.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.3
|
|
|||||||
|
Total Retail Revenues (a)
|
|
2,026.0
|
|
|
996.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,022.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (b)
|
|
245.3
|
|
|
—
|
|
|
—
|
|
|
126.1
|
|
|
—
|
|
|
(26.6
|
)
|
|
344.8
|
|
|||||||
|
Transmission Revenues (c)
|
|
60.6
|
|
|
90.5
|
|
|
213.0
|
|
|
—
|
|
|
—
|
|
|
(99.3
|
)
|
|
264.8
|
|
|||||||
|
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
331.4
|
|
|
—
|
|
|
—
|
|
|
331.4
|
|
|||||||
|
Total Wholesale and Competitive Retail Revenues
|
|
305.9
|
|
|
90.5
|
|
|
213.0
|
|
|
457.5
|
|
|
—
|
|
|
(125.9
|
)
|
|
941.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (d)
|
|
41.6
|
|
|
45.5
|
|
|
8.4
|
|
|
0.1
|
|
|
21.3
|
|
|
(22.6
|
)
|
|
94.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
2,373.5
|
|
|
1,132.1
|
|
|
221.4
|
|
|
457.6
|
|
|
21.3
|
|
|
(148.5
|
)
|
|
4,057.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (d)
|
|
(10.3
|
)
|
|
(16.4
|
)
|
|
(8.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.6
|
)
|
|||||||
|
Other Revenues (d)
|
|
(14.2
|
)
|
|
21.3
|
|
|
—
|
|
|
3.1
|
|
|
2.5
|
|
|
(21.3
|
)
|
|
(8.6
|
)
|
|||||||
|
Total Other Revenues
|
|
(24.5
|
)
|
|
4.9
|
|
|
(8.9
|
)
|
|
3.1
|
|
|
2.5
|
|
|
(21.3
|
)
|
|
(44.2
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
2,349.0
|
|
|
$
|
1,137.0
|
|
|
$
|
212.5
|
|
|
$
|
460.7
|
|
|
$
|
23.8
|
|
|
$
|
(169.8
|
)
|
|
$
|
4,013.2
|
|
|
(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 is $25 million. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $134 million. The remaining affiliated amounts are immaterial.
|
|
(d)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Residential Revenues
|
|
$
|
142.0
|
|
|
$
|
—
|
|
|
$
|
256.5
|
|
|
$
|
142.2
|
|
|
$
|
288.3
|
|
|
$
|
147.7
|
|
|
$
|
140.7
|
|
|
Commercial Revenues
|
|
106.0
|
|
|
—
|
|
|
132.1
|
|
|
111.8
|
|
|
182.7
|
|
|
101.3
|
|
|
113.1
|
|
|||||||
|
Industrial Revenues
|
|
33.6
|
|
|
—
|
|
|
144.6
|
|
|
134.8
|
|
|
77.1
|
|
|
83.0
|
|
|
83.7
|
|
|||||||
|
Other Retail Revenues
|
|
7.9
|
|
|
—
|
|
|
18.4
|
|
|
1.7
|
|
|
3.3
|
|
|
20.2
|
|
|
2.2
|
|
|||||||
|
Total Retail Revenues
|
|
289.5
|
|
|
—
|
|
|
551.6
|
|
|
390.5
|
|
|
551.4
|
|
|
352.2
|
|
|
339.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (a)
|
|
—
|
|
|
—
|
|
|
62.2
|
|
|
113.4
|
|
|
—
|
|
|
5.8
|
|
|
44.8
|
|
|||||||
|
Transmission Revenues (b)
|
|
98.5
|
|
|
276.8
|
|
|
25.7
|
|
|
6.1
|
|
|
14.4
|
|
|
15.5
|
|
|
23.8
|
|
|||||||
|
Total Wholesale Revenues
|
|
98.5
|
|
|
276.8
|
|
|
87.9
|
|
|
119.5
|
|
|
14.4
|
|
|
21.3
|
|
|
68.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (c)
|
|
7.8
|
|
|
5.0
|
|
|
16.1
|
|
|
28.6
|
|
|
33.3
|
|
|
5.8
|
|
|
5.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
395.8
|
|
|
281.8
|
|
|
655.6
|
|
|
538.6
|
|
|
599.1
|
|
|
379.3
|
|
|
413.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (d)
|
|
1.2
|
|
|
(14.9
|
)
|
|
0.2
|
|
|
4.5
|
|
|
6.0
|
|
|
(31.2
|
)
|
|
(38.1
|
)
|
|||||||
|
Other Revenues (d)
|
|
41.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|||||||
|
Total Other Revenues
|
|
42.2
|
|
|
(14.9
|
)
|
|
0.2
|
|
|
4.5
|
|
|
7.5
|
|
|
(31.2
|
)
|
|
(38.1
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
438.0
|
|
|
$
|
266.9
|
|
|
$
|
655.8
|
|
|
$
|
543.1
|
|
|
$
|
606.6
|
|
|
$
|
348.1
|
|
|
$
|
375.5
|
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo is $30 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.
|
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $198 million. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $23 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.
|
|
(d)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
|
AEP Texas
|
|
AEPTCo (f)
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Residential Revenues
|
|
$
|
143.2
|
|
|
$
|
—
|
|
|
$
|
282.3
|
|
|
$
|
163.0
|
|
|
$
|
388.1
|
|
|
$
|
169.4
|
|
|
$
|
158.2
|
|
|
Commercial Revenues
|
|
103.4
|
|
|
—
|
|
|
140.6
|
|
|
122.1
|
|
|
215.7
|
|
|
105.2
|
|
|
123.9
|
|
|||||||
|
Industrial Revenues
|
|
31.8
|
|
|
—
|
|
|
152.5
|
|
|
145.9
|
|
|
103.3
|
|
|
77.3
|
|
|
87.2
|
|
|||||||
|
Other Retail Revenues
|
|
7.3
|
|
|
—
|
|
|
18.8
|
|
|
1.5
|
|
|
3.3
|
|
|
22.3
|
|
|
2.1
|
|
|||||||
|
Total Retail Revenues (a)
|
|
285.7
|
|
|
—
|
|
|
594.2
|
|
|
432.5
|
|
|
710.4
|
|
|
374.2
|
|
|
371.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (b)
|
|
—
|
|
|
—
|
|
|
56.8
|
|
|
142.1
|
|
|
—
|
|
|
8.3
|
|
|
55.7
|
|
|||||||
|
Transmission Revenues (c)
|
|
78.0
|
|
|
221.4
|
|
|
14.5
|
|
|
3.9
|
|
|
12.0
|
|
|
5.3
|
|
|
21.8
|
|
|||||||
|
Total Wholesale Revenues
|
|
78.0
|
|
|
221.4
|
|
|
71.3
|
|
|
146.0
|
|
|
12.0
|
|
|
13.6
|
|
|
77.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (d)
|
|
7.2
|
|
|
6.4
|
|
|
15.1
|
|
|
25.9
|
|
|
38.9
|
|
|
4.9
|
|
|
5.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
370.9
|
|
|
227.8
|
|
|
680.6
|
|
|
604.4
|
|
|
761.3
|
|
|
392.7
|
|
|
454.2
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (e)
|
|
0.2
|
|
|
(27.7
|
)
|
|
(13.6
|
)
|
|
(0.5
|
)
|
|
(16.6
|
)
|
|
5.6
|
|
|
2.9
|
|
|||||||
|
Other Revenues (e)
|
|
17.2
|
|
|
—
|
|
|
—
|
|
|
(14.2
|
)
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|||||||
|
Total Other Revenues
|
|
17.4
|
|
|
(27.7
|
)
|
|
(13.6
|
)
|
|
(14.7
|
)
|
|
(12.5
|
)
|
|
5.6
|
|
|
2.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
388.3
|
|
|
$
|
200.1
|
|
|
$
|
667.0
|
|
|
$
|
589.7
|
|
|
$
|
748.8
|
|
|
$
|
398.3
|
|
|
$
|
457.1
|
|
|
(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 APCo is $29 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $104 million. The remaining affiliated amounts are immaterial.
|
|
(d)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $26 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.
|
|
(e)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
(f)
|
These amounts presented reflect the revisions made to AEPTCo’s previously issued financial statement. See the “revisions to Previously Issued Financial Statements” section of Note 1 for additional information.
|
|
|
|
Six Months Ended June 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
|
|
$
|
1,737.4
|
|
|
$
|
1,021.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,758.5
|
|
|
Commercial Revenues
|
|
1,028.7
|
|
|
598.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,627.2
|
|
|||||||
|
Industrial Revenues
|
|
1,081.3
|
|
|
233.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
1,313.1
|
|
|||||||
|
Other Retail Revenues
|
|
86.9
|
|
|
22.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109.1
|
|
|||||||
|
Total Retail Revenues
|
|
3,934.3
|
|
|
1,875.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
5,807.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (a)
|
|
430.6
|
|
|
—
|
|
|
—
|
|
|
408.5
|
|
|
—
|
|
|
(71.3
|
)
|
|
767.8
|
|
|||||||
|
Transmission Revenues (b)
|
|
137.6
|
|
|
213.1
|
|
|
544.9
|
|
|
—
|
|
|
—
|
|
|
(386.4
|
)
|
|
509.2
|
|
|||||||
|
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
469.5
|
|
|
—
|
|
|
—
|
|
|
469.5
|
|
|||||||
|
Total Wholesale and Competitive Retail Revenues
|
|
568.2
|
|
|
213.1
|
|
|
544.9
|
|
|
878.0
|
|
|
—
|
|
|
(457.7
|
)
|
|
1,746.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (c)
|
|
81.5
|
|
|
84.7
|
|
|
8.1
|
|
|
(10.3
|
)
|
|
44.8
|
|
|
(71.4
|
)
|
|
137.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
4,584.0
|
|
|
2,172.9
|
|
|
553.0
|
|
|
867.7
|
|
|
44.8
|
|
|
(530.6
|
)
|
|
7,691.8
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (c)
|
|
(56.9
|
)
|
|
16.4
|
|
|
(17.7
|
)
|
|
—
|
|
|
—
|
|
|
(43.5
|
)
|
|
(101.7
|
)
|
|||||||
|
Other Revenues (c)
|
|
—
|
|
|
78.4
|
|
|
—
|
|
|
26.8
|
|
|
4.5
|
|
|
(69.4
|
)
|
|
40.3
|
|
|||||||
|
Total Other Revenues
|
|
(56.9
|
)
|
|
94.8
|
|
|
(17.7
|
)
|
|
26.8
|
|
|
4.5
|
|
|
(112.9
|
)
|
|
(61.4
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
4,527.1
|
|
|
$
|
2,267.7
|
|
|
$
|
535.3
|
|
|
$
|
894.5
|
|
|
$
|
49.3
|
|
|
$
|
(643.5
|
)
|
|
$
|
7,630.4
|
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing is $71 million. The remaining affiliated amounts are immaterial.
|
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $399 million. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
|
Six Months Ended June 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
|
|
$
|
1,858.2
|
|
|
$
|
1,098.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,957.0
|
|
|
Commercial Revenues
|
|
1,059.9
|
|
|
614.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,674.3
|
|
|||||||
|
Industrial Revenues
|
|
1,097.3
|
|
|
252.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,350.0
|
|
|||||||
|
Other Retail Revenues
|
|
90.3
|
|
|
21.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
111.4
|
|
|||||||
|
Total Retail Revenues (a)
|
|
4,105.7
|
|
|
1,987.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,092.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (b)
|
|
462.3
|
|
|
—
|
|
|
—
|
|
|
298.3
|
|
|
—
|
|
|
(56.7
|
)
|
|
703.9
|
|
|||||||
|
Transmission Revenues (c)
|
|
135.6
|
|
|
184.6
|
|
|
432.5
|
|
|
—
|
|
|
—
|
|
|
(279.1
|
)
|
|
473.6
|
|
|||||||
|
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
641.1
|
|
|
—
|
|
|
—
|
|
|
641.1
|
|
|||||||
|
Total Wholesale and Competitive Retail Revenues
|
|
597.9
|
|
|
184.6
|
|
|
432.5
|
|
|
939.4
|
|
|
—
|
|
|
(335.8
|
)
|
|
1,818.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (d)
|
|
81.5
|
|
|
95.2
|
|
|
10.4
|
|
|
2.3
|
|
|
43.3
|
|
|
(47.7
|
)
|
|
185.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
4,785.1
|
|
|
2,266.8
|
|
|
442.9
|
|
|
941.7
|
|
|
43.3
|
|
|
(383.5
|
)
|
|
8,096.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (d)
|
|
(19.4
|
)
|
|
(10.4
|
)
|
|
(24.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54.7
|
)
|
|||||||
|
Other Revenues (d)
|
|
(8.7
|
)
|
|
43.0
|
|
|
—
|
|
|
24.1
|
|
|
4.5
|
|
|
(43.0
|
)
|
|
19.9
|
|
|||||||
|
Total Other Revenues
|
|
(28.1
|
)
|
|
32.6
|
|
|
(24.9
|
)
|
|
24.1
|
|
|
4.5
|
|
|
(43.0
|
)
|
|
(34.8
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
4,757.0
|
|
|
$
|
2,299.4
|
|
|
$
|
418.0
|
|
|
$
|
965.8
|
|
|
$
|
47.8
|
|
|
$
|
(426.5
|
)
|
|
$
|
8,061.5
|
|
|
(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 is $52 million. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $297 million. The remaining affiliated amounts are immaterial.
|
|
(d)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Residential Revenues
|
|
$
|
262.9
|
|
|
$
|
—
|
|
|
$
|
629.0
|
|
|
$
|
360.6
|
|
|
$
|
759.9
|
|
|
$
|
287.7
|
|
|
$
|
280.8
|
|
|
Commercial Revenues
|
|
203.9
|
|
|
—
|
|
|
274.3
|
|
|
233.1
|
|
|
393.2
|
|
|
182.1
|
|
|
226.8
|
|
|||||||
|
Industrial Revenues
|
|
66.6
|
|
|
—
|
|
|
292.1
|
|
|
273.2
|
|
|
166.8
|
|
|
154.0
|
|
|
164.9
|
|
|||||||
|
Other Retail Revenues
|
|
15.2
|
|
|
—
|
|
|
38.0
|
|
|
3.5
|
|
|
6.7
|
|
|
38.2
|
|
|
4.4
|
|
|||||||
|
Total Retail Revenues
|
|
548.6
|
|
|
—
|
|
|
1,233.4
|
|
|
870.4
|
|
|
1,326.6
|
|
|
662.0
|
|
|
676.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (a)
|
|
—
|
|
|
—
|
|
|
129.7
|
|
|
225.3
|
|
|
—
|
|
|
14.4
|
|
|
102.0
|
|
|||||||
|
Transmission Revenues (b)
|
|
184.3
|
|
|
518.9
|
|
|
51.4
|
|
|
12.4
|
|
|
28.3
|
|
|
25.3
|
|
|
48.0
|
|
|||||||
|
Total Wholesale Revenues
|
|
184.3
|
|
|
518.9
|
|
|
181.1
|
|
|
237.7
|
|
|
28.3
|
|
|
39.7
|
|
|
150.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (c)
|
|
14.7
|
|
|
8.1
|
|
|
29.5
|
|
|
49.6
|
|
|
72.3
|
|
|
11.6
|
|
|
13.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
747.6
|
|
|
527.0
|
|
|
1,444.0
|
|
|
1,157.7
|
|
|
1,427.2
|
|
|
713.3
|
|
|
840.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (d)
|
|
0.3
|
|
|
(16.6
|
)
|
|
4.6
|
|
|
(0.3
|
)
|
|
9.6
|
|
|
(32.4
|
)
|
|
(43.4
|
)
|
|||||||
|
Other Revenues (d)
|
|
80.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|||||||
|
Total Other Revenues
|
|
81.1
|
|
|
(16.6
|
)
|
|
4.6
|
|
|
(0.3
|
)
|
|
16.2
|
|
|
(32.4
|
)
|
|
(43.4
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
828.7
|
|
|
$
|
510.4
|
|
|
$
|
1,448.6
|
|
|
$
|
1,157.4
|
|
|
$
|
1,443.4
|
|
|
$
|
680.9
|
|
|
$
|
796.6
|
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo is $64 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.
|
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $393 million. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $38 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.
|
|
(d)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
|
AEP Texas
|
|
AEPTCo (f)
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||||||
|
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Residential Revenues
|
|
$
|
274.8
|
|
|
$
|
—
|
|
|
$
|
696.3
|
|
|
$
|
352.0
|
|
|
$
|
824.9
|
|
|
$
|
310.6
|
|
|
$
|
298.3
|
|
|
Commercial Revenues
|
|
202.9
|
|
|
—
|
|
|
287.2
|
|
|
231.8
|
|
|
410.3
|
|
|
189.3
|
|
|
232.2
|
|
|||||||
|
Industrial Revenues
|
|
62.7
|
|
|
—
|
|
|
299.8
|
|
|
277.8
|
|
|
191.1
|
|
|
146.4
|
|
|
164.4
|
|
|||||||
|
Other Retail Revenues
|
|
14.3
|
|
|
—
|
|
|
38.4
|
|
|
3.7
|
|
|
6.5
|
|
|
40.7
|
|
|
4.2
|
|
|||||||
|
Total Retail Revenues (a)
|
|
554.7
|
|
|
—
|
|
|
1,321.7
|
|
|
865.3
|
|
|
1,432.8
|
|
|
687.0
|
|
|
699.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Generation Revenues (b)
|
|
—
|
|
|
—
|
|
|
119.6
|
|
|
256.1
|
|
|
—
|
|
|
14.2
|
|
|
115.6
|
|
|||||||
|
Transmission Revenues (c)
|
|
156.0
|
|
|
406.3
|
|
|
39.3
|
|
|
10.7
|
|
|
28.0
|
|
|
15.9
|
|
|
47.8
|
|
|||||||
|
Total Wholesale Revenues
|
|
156.0
|
|
|
406.3
|
|
|
158.9
|
|
|
266.8
|
|
|
28.0
|
|
|
30.1
|
|
|
163.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues from Contracts with Customers (d)
|
|
14.3
|
|
|
8.5
|
|
|
26.3
|
|
|
48.6
|
|
|
81.2
|
|
|
9.1
|
|
|
11.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues from Contracts with Customers
|
|
725.0
|
|
|
414.8
|
|
|
1,506.9
|
|
|
1,180.7
|
|
|
1,542.0
|
|
|
726.2
|
|
|
873.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Alternative Revenues (e)
|
|
(0.1
|
)
|
|
(23.0
|
)
|
|
(19.5
|
)
|
|
(5.5
|
)
|
|
(10.3
|
)
|
|
8.9
|
|
|
2.6
|
|
|||||||
|
Other Revenues (e)
|
|
35.0
|
|
|
—
|
|
|
—
|
|
|
(8.7
|
)
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|||||||
|
Total Other Revenues
|
|
34.9
|
|
|
(23.0
|
)
|
|
(19.5
|
)
|
|
(14.2
|
)
|
|
(2.3
|
)
|
|
8.9
|
|
|
2.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Total Revenues
|
|
$
|
759.9
|
|
|
$
|
391.8
|
|
|
$
|
1,487.4
|
|
|
$
|
1,166.5
|
|
|
$
|
1,539.7
|
|
|
$
|
735.1
|
|
|
$
|
876.5
|
|
|
(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 is $69 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.
|
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $241 million. The remaining affiliated amounts are immaterial.
|
|
(d)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $41 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.
|
|
(e)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
(f)
|
The amounts presented reflect the revisions made to AEPTCo’s previously issued financial statements. For additional details on revisions made to AEPTCo’s financial statements, see Note 1- Significant Accounting Matters.
|
|
Company
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
After 2023
|
|
Total
|
||||||||||
|
|
|
(in millions)
|
||||||||||||||||||
|
AEP
|
|
$
|
505.5
|
|
|
$
|
210.3
|
|
|
$
|
163.1
|
|
|
$
|
284.7
|
|
|
$
|
1,163.6
|
|
|
AEP Texas
|
|
193.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
193.5
|
|
|||||
|
AEPTCo
|
|
451.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
451.6
|
|
|||||
|
APCo
|
|
72.9
|
|
|
32.7
|
|
|
25.5
|
|
|
11.6
|
|
|
142.7
|
|
|||||
|
I&M
|
|
14.4
|
|
|
8.9
|
|
|
8.8
|
|
|
4.4
|
|
|
36.5
|
|
|||||
|
OPCo
|
|
35.6
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
43.1
|
|
|||||
|
PSO
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|||||
|
SWEPCo
|
|
20.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.0
|
|
|||||
|
Company
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(in millions)
|
||||||
|
AEPTCo
|
|
$
|
82.8
|
|
|
$
|
58.6
|
|
|
APCo
|
|
40.4
|
|
|
52.5
|
|
||
|
I&M
|
|
14.5
|
|
|
35.3
|
|
||
|
OPCo
|
|
30.8
|
|
|
46.1
|
|
||
|
PSO
|
|
24.5
|
|
|
12.4
|
|
||
|
SWEPCo
|
|
45.9
|
|
|
16.3
|
|
||
|
Exhibit
|
|
Description
|
|
AEP
|
|
AEP
Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
|
3
|
|
Composite of Amended Restated Certificate of Incorporation of American Electric Power Company, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
Modification to Consent Decree with U.S. District Court dated July 17, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
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
|
|
UNITED STATES OF AMERICA
Plaintiff,
and
STATE OF NEW YORK, ET AL.,
Plaintiff-Intervenors,
v.
AMERICAN ELECTRIC POWER SERVICE CORP., ET AL.,
Defendants.
___________________________________
OHIO CITIZEN ACTION, ET AL.,
Plaintiffs,
v.
AMERICAN ELECTRIC POWER SERVICE CORP., ET AL.,
Defendants.
___________________________________
UNITED STATES OF AMERICA
Plaintiff,
v.
AMERICAN ELECTRIC POWER SERVICE CORP., ET AL.,
Defendants.
___________________________________
|
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
|
Consolidated Cases:
Civil Action No. C2-99-1182
Civil Action No. C2-99-1250
JUDGE EDMUND A. SARGUS, JR.
Magistrate Judge Kimberly A. Jolson
Civil Action No. C2-04-1098
JUDGE EDMUND A. SARGUS, JR.
Magistrate Judge Kimberly A. Jolson
Civil Action No. C2-05-360
JUDGE EDMUND A. SARGUS, JR.
Magistrate Judge Kimberly A. Jolson
|
|
7-17-2019
|
|
/s/ Edmund A. Sargus, Jr.
|
|
DATE
|
|
EDMUND A. SARGUS, JR.
|
|
|
|
CHIEF UNITED STATES DISTRICT JUDGE
|
|
a.
|
Emissions and BTU inputs from both Rockport Units that occur during a period of Malfunction at either Rockport Unit shall be excluded from the calculation of the 30-Day Rolling Average Emission Rate if Defendants provide notice of the Malfunction to EPA in accordance with Paragraph 159 in Section XIV (Force Majeure) of this Consent Decree;
|
|
b.
|
Emissions of NOx and BTU inputs from both Rockport Units that occur during the fifth and subsequent Cold Start Up Period(s) that occur at a single Rockport Unit during any 30-Day period shall be excluded from the calculation of the 30-Day Rolling Average Emission Rate if inclusion of such emissions would result in a
|
|
c.
|
For SO2, shall include all emissions and BTUs commencing from the time a single Rockport Unit is synchronized with a utility electric distribution system through the time that both Rockport Units cease to combust fossil fuel and the fire is out in both boilers.
|
|
Calendar Year
|
Eastern System-Wide Annual Tonnage Limitations for NOx
|
|
2009
|
96,000 tons
|
|
2010
|
92,500 tons
|
|
2011
|
92,500 tons
|
|
2012
|
85,000 tons
|
|
2013
|
85,000 tons
|
|
2014
|
85,000 tons
|
|
2015
|
75,000 tons
|
|
2016-2017
|
72,000 tons per year
|
|
2018-2020
|
62,000 tons per year
|
|
2021-2028
|
52,000 tons per year
|
|
2029 and each year thereafter
|
44,000 tons per year
|
|
Unit
|
NOx Pollution Control
|
Date
|
|
Amos Unit 1
|
SCR
|
January 1, 2008
|
|
Amos Unit 2
|
SCR
|
January 1, 2009
|
|
Amos Unit 3
|
SCR
|
January 1, 2008
|
|
Big Sandy Unit 2
|
SCR
|
January 1, 2009
|
|
Cardinal Unit 1
|
SCR
|
January 1, 2009
|
|
Cardinal Unit 2
|
SCR
|
January 1, 2009
|
|
Cardinal Unit 3
|
SCR
|
January 1, 2009
|
|
Conesville Unit 1
|
Retire, Retrofit, or Re-Power
|
Date of Entry of this Consent Decree
|
|
Conesville Unit 2
|
Retire, Retrofit, or Re-Power
|
Date of Entry of this Consent Decree
|
|
Conesville Unit 3
|
Retire, Retrofit, or Re-Power
|
December 31, 2012
|
|
Conesville Unit 4
|
SCR
|
December 31, 2010
|
|
Gavin Unit 1
|
SCR
|
January 1, 2009
|
|
Gavin Unit 2
|
SCR
|
January 1, 2009
|
|
Mitchell Unit 1
|
SCR
|
January 1, 2009
|
|
Mitchell Unit 2
|
SCR
|
January 1, 2009
|
|
Mountaineer Unit 1
|
SCR
|
January 1, 2008
|
|
Muskingum River Units 1-4
|
Retire, Retrofit, or Re-Power
|
December 31, 2015
|
|
Muskingum River Unit 5
|
SCR
|
January 1, 2008
|
|
Rockport Unit 1
|
SCR
|
December 31, 2017
|
|
Rockport Unit 2
|
SCR
|
June 1, 2020
|
|
Sporn Unit 5
|
Retire, Retrofit, or Re-Power
|
December 31, 2013
|
|
A total of at least 600 MW from the following list of Units: Sporn Units 1-4, Clinch River units 1-3, Tanners Creek Units 1-3 and/or Kammer Units 1-3
|
Retire, Retrofit, or Re-Power
|
December 31, 2018
|
|
Calendar Year
|
Eastern System-Wide Annual Tonnage Limitations for SO2
|
|
2010
|
450,000 tons
|
|
2011
|
450,000 tons
|
|
2012
|
420,000 tons
|
|
2013
|
350,000 tons
|
|
2014
|
340,000 tons
|
|
2015
|
275,000 tons
|
|
2016
|
145,000 tons
|
|
2017
|
145,000 tons
|
|
2018
|
145,000 tons
|
|
2019-2020
|
113,000 tons per year
|
|
2021-2028
|
94,000 tons per year
|
|
2029, and each year thereafter
|
89,000 tons per year
|
|
Unit
|
SO2 Pollution Control
|
Date
|
|
Amos Unit 1
|
FGD
|
February 15, 2011
|
|
Amos Unit 2
|
FGD
|
April 2, 2010
|
|
Amos Unit 3
|
FGD
|
December 31, 2009
|
|
Big Sandy Unit 2
|
Retrofit, Retire, Re-Power or Refuel
|
December 31, 2015
|
|
Cardinal Units 1 and 2
|
FGD
|
December 31, 2008
|
|
Cardinal Unit 3
|
FGD
|
December 31, 2012
|
|
Conesville Units 1 and 2
|
Retire, Retrofit, or Re-power
|
Date of Entry
|
|
Conesville Unit 3
|
Retire, Retrofit, or Re-power
|
December 31, 2012
|
|
Conesville Unit 4
|
FGD
|
December 31, 2010
|
|
Conesville Unit 5
|
Upgrade existing FGD and meet a 95% 30-day Rolling Average Removal Efficiency
|
December 31, 2009
|
|
Conesville Unit 6
|
Upgrade existing FGD and meet a 95% 30-day Rolling Average Removal Efficiency
|
December 31, 2009
|
|
Gavin Units 1 and 2
|
FGD
|
Date of Entry
|
|
Mitchell Units 1 and 2
|
FGD
|
December 31, 2007
|
|
Mountaineer Unit 1
|
FGD
|
December 31, 2007
|
|
Muskingum River Units 1-4
|
Retire, Retrofit, or Re-power
|
December 31, 2015
|
|
Muskingum River Unit 5
|
Cease Burning Coal and Retire
Or
Cease Burning Coal and Refuel
|
December 15, 2015
December 31, 2015, unless the Refueling project is not completed in which case the Unit
|
|
Unit
|
SO2 Pollution Control
|
Date
|
|
|
|
will be taken out of service no later than December 31, 2015, and will not restart until the Refueling project is completed. The refueling project must be completed by June 30, 2017.
|
|
Rockport Unit 1
|
Dry Sorbent Injection
and
Enhanced DSI, and beginning in calendar year 2021 meet an Emission Rate of 0.15 lb/mmBTU of SO2 on a 30-Day Rolling Average Basis at the Rockport combined stack
And
Retrofit, Refuel, or Re-Power, but must satisfy the provisions of Paragraphs 133 and 140
|
April 16, 2015
December 31, 2020
December 31, 2028
|
|
Rockport Unit 2
|
Dry Sorbent Injection
and
Enhanced DSI, and beginning in calendar year 2021 meet an Emission Rate of 0.15 lb/mmBTU of SO2 on a 30-Day Rolling Average Basis at the Rockport combined stack
|
April 16, 2015
June 1, 2020
|
|
Sporn Unit 5
|
Retire, Retrofit, or Re-power
|
December 31, 2013
|
|
A total of at least 600 MW from the following list of Units: Sporn Units 1-4, Clinch River Units 1-3,
|
Retire, Retrofit, or Re-power
|
December 31, 2018
|
|
Unit
|
SO2 Pollution Control
|
Date
|
|
Tanners Creek Units 1-3, and/or Kammer Units 1-3
|
|
|
|
a.
|
where such modification is commenced at any AEP Eastern System Unit after the Date of Lodging of the original Consent Decree; or
|
|
b.
|
where such modification is one this Consent Decree expressly directs Defendants to undertake.
|
|
1.
|
I have reviewed this report on Form 10-Q of American Electric Power Company, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of AEP Transmission Company, LLC;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of AEP Texas Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Appalachian Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Indiana Michigan Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Ohio Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Public Service Company of Oklahoma;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Southwestern Electric Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Nicholas K. Akins
|
|
|
|
|
Nicholas K. Akins
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of American Electric Power Company, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of AEP Transmission Company, LLC;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of AEP Texas Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Appalachian Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Indiana Michigan Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
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|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Ohio Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Public Service Company of Oklahoma;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Southwestern Electric Power Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of each registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: July 25, 2019
|
By:
|
|
/s/ Brian X. Tierney
|
|
|
|
|
Brian X. Tierney
|
|
|
|
|
Chief Financial Officer
|
|
Number of Citations for S&S Violations of Mandatory Health or Safety Standards under 104 *
|
0
|
|
|
|
Number of Orders Issued under 104(b) *
|
0
|
|
|
|
Number of Citations and Orders for Unwarrantable Failure to Comply with Mandatory Health or Safety Standards under 104(d) *
|
0
|
|
|
|
Number of Flagrant Violations under 110(b)(2) *
|
0
|
|
|
|
Number of Imminent Danger Orders Issued under 107(a) *
|
0
|
|
|
|
Total Dollar Value of Proposed Assessments **
|
$
|
363
|
|
|
Number of Mining-related Fatalities
|
0
|
|
|
|
*
|
References to sections under the Mine Act.
|
|
**
|
Includes assessments paid in the second quarter of 2019 for citations issued in the first quarter of 2019.
|