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
|
|
|
October 24, 2019
|
|
|
|
|
American Electric Power Company, Inc.
|
493,951,812
|
|
|
($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
|
||||
September 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.
|
AEPRO
|
|
AEP River Operations, LLC, a commercial barge operation sold in November 2015.
|
AEPSC
|
|
American Electric Power Service Corporation, an AEP service subsidiary providing management and professional services to AEP and its subsidiaries.
|
AEPTCo
|
|
AEP Transmission Company, LLC, a wholly-owned subsidiary of AEP Transmission Holdco, is an intermediate holding company that owns the State Transcos.
|
AEPTCo Parent
|
|
AEP Transmission Company, LLC, the holding company of the State Transcos within the AEPTCo consolidation.
|
AFUDC
|
|
Allowance for Equity Funds Used During Construction.
|
AGR
|
|
AEP Generation Resources Inc., a competitive AEP subsidiary in the Generation & Marketing segment.
|
ALJ
|
|
Administrative Law Judge.
|
AOCI
|
|
Accumulated Other Comprehensive Income.
|
APCo
|
|
Appalachian Power Company, an AEP electric utility subsidiary.
|
Appalachian Consumer Rate Relief Funding
|
|
Appalachian Consumer Rate Relief Funding LLC, a wholly-owned subsidiary of APCo and a consolidated VIE formed for the purpose of issuing and servicing securitization bonds related to the under-recovered ENEC deferral balance.
|
APSC
|
|
Arkansas Public Service Commission.
|
ARAM
|
|
Average Rate Assumption Method, an IRS approved method used to calculate the reversal of Excess ADIT for rate-making purposes.
|
ARO
|
|
Asset Retirement Obligations.
|
ASU
|
|
Accounting Standards Update.
|
CAA
|
|
Clean Air Act.
|
CLECO
|
|
Central Louisiana Electric Company, a nonaffiliated utility company.
|
Cardinal Operating Company
|
|
A jointly-owned organization between AGR and a nonaffiliate. The nonaffiliate operates the three unit Cardinal Plant and wholly-owns Units 2 and 3.
|
CO2
|
|
Carbon dioxide and other greenhouse gases.
|
Conesville Plant
|
|
A generation plant consisting of three coal-fired generating units totaling 1,695 MW located in Conesville, Ohio. The plant is jointly-owned by AGR and a nonaffiliate.
|
Cook Plant
|
|
Donald C. Cook Nuclear Plant, a two-unit, 2,278 MW nuclear plant owned by I&M.
|
CSAPR
|
|
Cross-State Air Pollution Rule.
|
CWA
|
|
Clean Water Act.
|
CWIP
|
|
Construction Work in Progress.
|
DCC Fuel
|
|
DCC Fuel VIII, DCC Fuel IX, DCC Fuel X, DCC Fuel XI, DCC Fuel XII and DCC Fuel XIII, consolidated VIEs formed for the purpose of acquiring, owning and leasing nuclear fuel to I&M.
|
Term
|
|
Meaning
|
|
|
|
DHLC
|
|
Dolet Hills Lignite Company, LLC, a wholly-owned lignite mining subsidiary of SWEPCo.
|
DIR
|
|
Distribution Investment Rider.
|
EIS
|
|
Energy Insurance Services, Inc., a nonaffiliated captive insurance company and consolidated VIE of AEP.
|
ENEC
|
|
Expanded Net Energy Cost.
|
Energy Supply
|
|
AEP Energy Supply LLC, a nonregulated holding company for AEP’s competitive generation, wholesale and retail businesses, and a wholly-owned subsidiary of AEP.
|
Equity Units
|
|
AEP’s Equity Units issued in March 2019.
|
ERCOT
|
|
Electric Reliability Council of Texas regional transmission organization.
|
ESP
|
|
Electric Security Plans, a PUCO requirement for electric utilities to adjust their rates by filing with the PUCO.
|
ETT
|
|
Electric Transmission Texas, LLC, an equity interest joint venture between AEP Transmission Holdco and Berkshire Hathaway Energy Company formed to own and operate electric transmission facilities in ERCOT.
|
Excess ADIT
|
|
Excess accumulated deferred income taxes.
|
FASB
|
|
Financial Accounting Standards Board.
|
Federal EPA
|
|
United States Environmental Protection Agency.
|
FERC
|
|
Federal Energy Regulatory Commission.
|
FGD
|
|
Flue Gas Desulfurization or scrubbers.
|
FIP
|
|
Federal Implementation Plan.
|
FTR
|
|
Financial Transmission Right, a financial instrument that entitles the holder to receive compensation for certain congestion-related transmission charges that arise when the power grid is congested resulting in differences in locational prices.
|
GAAP
|
|
Accounting Principles Generally Accepted in the United States of America.
|
Global Settlement
|
|
In February 2017, the PUCO approved a settlement agreement filed by OPCo in December 2016 which resolved all remaining open issues on remand from the Supreme Court of Ohio in OPCo’s 2009 - 2011 and June 2012 - May 2015 ESP filings. It also resolved all open issues in OPCo’s 2009, 2014 and 2015 SEET filings and 2009, 2012 and 2013 Fuel Adjustment Clause Audits.
|
I&M
|
|
Indiana Michigan Power Company, an AEP electric utility subsidiary.
|
IRS
|
|
Internal Revenue Service.
|
IURC
|
|
Indiana Utility Regulatory Commission.
|
KGPCo
|
|
Kingsport Power Company, an AEP electric utility subsidiary.
|
KPCo
|
|
Kentucky Power Company, an AEP electric utility subsidiary.
|
KWh
|
|
Kilowatt-hour.
|
LPSC
|
|
Louisiana Public Service Commission.
|
MATS
|
|
Mercury and Air Toxic Standards.
|
MISO
|
|
Midcontinent Independent System Operator.
|
MMBtu
|
|
Million British Thermal Units.
|
MPSC
|
|
Michigan Public Service Commission.
|
MTM
|
|
Mark-to-Market.
|
MW
|
|
Megawatt.
|
MWh
|
|
Megawatt-hour.
|
NAAQS
|
|
National Ambient Air Quality Standards.
|
Nonutility Money Pool
|
|
Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain nonutility subsidiaries.
|
North Central Wind Energy Facilities
|
|
A proposed joint PSO and SWEPCo project, which includes three Oklahoma wind facilities totaling approximately 1,485 MWs of wind generation.
|
NO2
|
|
Nitrogen dioxide.
|
NOx
|
|
Nitrogen oxide.
|
NPDES
|
|
National Pollutant Discharge Elimination System.
|
NSR
|
|
New Source Review.
|
Term
|
|
Meaning
|
|
|
|
OATT
|
|
Open Access Transmission Tariff.
|
OCC
|
|
Corporation Commission of the State of Oklahoma.
|
Ohio Phase-in-Recovery Funding
|
|
Ohio Phase-in-Recovery Funding LLC, a wholly-owned subsidiary of OPCo and a consolidated VIE formed for the purpose of issuing and servicing securitization bonds related to phase-in recovery property.
|
Oklaunion Power Station
|
|
A single unit coal-fired generation plant totaling 650 MW located in Vernon, Texas. The plant is jointly-owned by AEP Texas, PSO and certain nonaffiliated entities.
|
OPCo
|
|
Ohio Power Company, an AEP electric utility subsidiary.
|
OPEB
|
|
Other Postretirement Benefits.
|
OSS
|
|
Off-system Sales.
|
OTC
|
|
Over-the-counter.
|
OVEC
|
|
Ohio Valley Electric Corporation, which is 43.47% owned by AEP.
|
Parent
|
|
American Electric Power Company, Inc., the equity owner of AEP subsidiaries within the AEP consolidation.
|
PJM
|
|
Pennsylvania – New Jersey – Maryland regional transmission organization.
|
PM
|
|
Particulate Matter.
|
PPA
|
|
Purchase Power and Sale Agreement.
|
PSO
|
|
Public Service Company of Oklahoma, an AEP electric utility subsidiary.
|
PTC
|
|
Production Tax Credits.
|
PUCO
|
|
Public Utilities Commission of Ohio.
|
PUCT
|
|
Public Utility Commission of Texas.
|
Racine
|
|
A generation plant consisting of two hydroelectric generating units totaling 47.5 MWs located in Racine, Ohio and owned by AGR.
|
Registrant Subsidiaries
|
|
AEP subsidiaries which are SEC registrants: AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo.
|
Registrants
|
|
SEC registrants: AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo.
|
Restoration Funding
|
|
AEP Texas Restoration Funding LLC, a wholly-owned subsidiary of AEP Texas and a consolidated VIE formed for the purpose of issuing and servicing securitization bonds related to storm restoration in Texas primarily caused by Hurricane Harvey.
|
Risk Management Contracts
|
|
Trading and non-trading derivatives, including those derivatives designated as cash flow and fair value hedges.
|
Rockport Plant
|
|
A generation plant, consisting of two 1,310 MW coal-fired generating units near Rockport, Indiana. AEGCo and I&M jointly-own Unit 1. In 1989, AEGCo and I&M entered into a sale-and-leaseback transaction with Wilmington Trust Company, an unrelated, unconsolidated trustee for Rockport Plant, Unit 2.
|
ROE
|
|
Return on Equity.
|
RPM
|
|
Reliability Pricing Model.
|
RSR
|
|
Retail Stability Rider.
|
RTO
|
|
Regional Transmission Organization, responsible for moving electricity over large interstate areas.
|
Sabine
|
|
Sabine Mining Company, a lignite mining company that is a consolidated VIE for AEP and SWEPCo.
|
Santa Rita East
|
|
Santa Rita East Wind Holdings, LLC, a consolidated VIE whose sole purpose is to own and operate a 302.4 MW wind generation facility in west Texas in which AEP owns a 75% interest.
|
SCR
|
|
Selective Catalytic Reduction, NOx reduction technology at Rockport Plant.
|
SEC
|
|
U.S. Securities and Exchange Commission.
|
SEET
|
|
Significantly Excessive Earnings Test.
|
Sempra Renewables LLC
|
|
Sempra Renewables LLC, acquired in April 2019, consists of 724 MWs of wind generation and battery assets in the United States.
|
SIP
|
|
State Implementation Plan.
|
SNF
|
|
Spent Nuclear Fuel.
|
SO2
|
|
Sulfur dioxide.
|
SPP
|
|
Southwest Power Pool regional transmission organization.
|
Term
|
|
Meaning
|
|
|
|
SSO
|
|
Standard service offer.
|
State Transcos
|
|
AEPTCo’s seven wholly-owned, FERC regulated, transmission only electric utilities, which are geographically aligned with AEP’s existing utility operating companies.
|
SWEPCo
|
|
Southwestern Electric Power Company, an AEP electric utility subsidiary.
|
Tax Reform
|
|
On December 22, 2017, President Trump signed into law legislation referred to as the “Tax Cuts and Jobs Act” (the TCJA). The TCJA includes significant changes to the Internal Revenue Code of 1986, including a reduction in the corporate federal income tax rate from 35% to 21% effective January 1, 2018.
|
TCC
|
|
Formerly AEP Texas Central Company, now a division of AEP Texas.
|
Texas Restructuring Legislation
|
|
Legislation enacted in 1999 to restructure the electric utility industry in Texas.
|
Transition Funding
|
|
AEP Texas Central Transition Funding II LLC and AEP Texas Central Transition Funding III LLC, wholly-owned subsidiaries of TCC and consolidated VIEs formed for the purpose of issuing and servicing securitization bonds related to Texas Restructuring Legislation.
|
Transource Energy
|
|
Transource Energy, LLC, a consolidated VIE formed for the purpose of investing in utilities which develop, acquire, construct, own and operate transmission facilities in accordance with FERC-approved rates.
|
Turk Plant
|
|
John W. Turk, Jr. Plant, a 600 MW coal-fired plant in Arkansas that is 73% owned by SWEPCo.
|
UPA
|
|
Unit Power Agreement.
|
Utility Money Pool
|
|
Centralized funding mechanism AEP uses to meet the short-term cash requirements of certain utility subsidiaries.
|
VIE
|
|
Variable Interest Entity.
|
Virginia SCC
|
|
Virginia State Corporation Commission.
|
Wind Catcher Project
|
|
Wind Catcher Energy Connection Project, a joint PSO and SWEPCo project that was cancelled in July 2018. The project included the acquisition of a wind generation facility, totaling approximately 2,000 MW of wind generation, and the construction of a generation interconnection tie-line totaling approximately 350 miles.
|
WPCo
|
|
Wheeling Power Company, an AEP electric utility subsidiary.
|
WVPSC
|
|
Public Service Commission of West Virginia.
|
•
|
Changes in economic conditions, electric market demand and demographic patterns in AEP service territories.
|
•
|
Inflationary or deflationary interest rate trends.
|
•
|
Volatility in the financial markets, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt.
|
•
|
The availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material.
|
•
|
Decreased demand for electricity.
|
•
|
Weather conditions, including storms and drought conditions, and the ability to recover significant storm restoration costs.
|
•
|
The cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and SNF.
|
•
|
The availability of fuel and necessary generation capacity and the performance of generation plants.
|
•
|
The ability to recover fuel and other energy costs through regulated or competitive electric rates.
|
•
|
The ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs.
|
•
|
New legislation, litigation and government regulation, including oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets.
|
•
|
Evolving public perception of the risks associated with fuels used before, during and after the generation of electricity, including coal ash and nuclear fuel.
|
•
|
Timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance.
|
•
|
Resolution of litigation.
|
•
|
The ability to constrain operation and maintenance costs.
|
•
|
Prices and demand for power generated and sold at wholesale.
|
•
|
Changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation.
|
•
|
The ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives.
|
•
|
Volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas.
|
•
|
Changes in utility regulation and the allocation of costs within RTOs including ERCOT, PJM and SPP.
|
•
|
Changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market.
|
•
|
Actions of rating agencies, including changes in the ratings of debt.
|
•
|
The impact of volatility in the capital markets on the value of the investments held by the pension, OPEB, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements.
|
•
|
Accounting standards periodically issued by accounting standard-setting bodies.
|
•
|
Other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes, naturally occurring and human-caused fires, cyber security threats and other catastrophic events.
|
•
|
The ability to attract and retain the requisite work force and key personnel.
|
•
|
In May 2019, AEP Texas filed a request with the PUCT for a $56 million annual increase in rates based upon a proposed 10.5% return on common equity. In July and August 2019, PUCT Staff and various intervenors filed testimony that includes recommended disallowances that could potentially result in write-offs exceeding $450 million. The PUCT staff's recommended disallowances primarily consisted of $85 million in capital incentives and $26 million for capitalized vegetation management expenses. The intervenors recommended disallowances primarily consisted of (a) $173 million for a newly constructed transmission operations center and other service centers, (b) $94 million for Hurricane Harvey costs, (c) $36 million for capitalized cross arms and (d) $21 million for capitalized plant costs related to unreimbursed damages to assets caused by third-parties. In addition, one intervenor recommended AEP Texas refund $115 million of Excess ADIT, which includes $2 million in interest, related to previously owned deregulated generation assets. AEP Texas recorded $113 million as a favorable adjustment to income tax expense in 2017 as a result of Tax Reform. The PUCT is expected to issue an order on the case by the first quarter of 2020.
|
•
|
In May 2019, I&M filed a request with the IURC for a $172 million annual increase. The requested increase in Indiana rates would be phased in through January 2021 and is based upon a proposed 10.5% return on common equity. In August 2019, various intervenors filed testimony that includes recommended disallowances that could potentially result in write-offs of $41 million related to the remaining book value of existing Indiana jurisdictional meters and $11 million associated with certain Cook Plant study costs. The IURC is expected to issue an order on the case by the first quarter of 2020.
|
•
|
Virginia Legislation Affecting Earnings Reviews - In March 2018, Virginia enacted legislation requiring APCo to file its next generation and distribution base rate case by March 31, 2020 using 2017, 2018 and 2019 test years (triennial review). Triennial reviews are subject to an earnings test which provides that 70% of any earnings exceeding 70 basis points over the Virginia SCC authorized return on common equity would be refunded to customers or be used to lower APCo’s Virginia retail base rates on a prospective basis. The Virginia legislation also states that, under certain circumstances, costs associated with asset impairments related to early retirement determinations made by a utility for generation facilities fueled by coal, natural gas or oil or for automated meters be considered fully recovered in the period recorded. Management has reviewed APCo’s actual and forecasted earnings for the triennial period and concluded that it is not probable, but is reasonably possible, that APCo will over-earn in Virginia during the 2017-2019 triennial period. Due to various uncertainties, including weather, storm restoration, weather-normalized demand and potential customer shopping during 2019, management cannot estimate a range of potential APCo Virginia over-earnings during the 2017-2019 triennial period.
|
•
|
Virginia Staff Depreciation Study Request - In November 2018, Virginia staff recommended that APCo implement new Virginia jurisdictional depreciation rates effective January 1, 2018 based on APCo’s depreciation study that was prepared at Virginia staff’s request using December 31, 2017 APCo property balances. Implementation of those depreciation rates would result in a $21 million pretax increase in annual depreciation expense with no corresponding increase in retail base rates. In December 2018, APCo submitted a response to the Virginia Staff stating that it was inappropriate for APCo to change Virginia depreciation rates in advance of APCo’s triennial review, citing the Virginia SCC’s November 2014 order to not change APCo’s Virginia depreciation rates until APCo’s next base rate case/review.
|
•
|
2020 Increase in West Virginia Retail Rates for WPCo 17.5% Merchant Share of Mitchell Plant - In January 2015, the WVPSC approved a settlement agreement in which 82.5% of the costs associated with WPCo’s acquired interest were prospectively reflected in retail rates with the remaining 17.5% of costs associated with the acquired interest to be included in rates starting January 2020. APCo and WPCo file joint retail rates in West Virginia. In June 2019, APCo and WPCo filed with the WVPSC to increase each company’s retail rates (through a surcharge) starting January 1, 2020 to reflect the recovery of WPCo’s remaining 17.5% interest in the Mitchell Plant. The joint filing will increase APCo’s and WPCo’s combined West Virginia retail rates by approximately $21 million annually.
|
•
|
2012 Texas Base Rate Case - In 2012, SWEPCo filed a request with the PUCT to increase annual base rates primarily due to the completion of the Turk Plant. In 2013, the PUCT issued an order affirming the prudence of the Turk Plant. In July 2018, the Texas Third Court of Appeals reversed the PUCT’s judgment affirming the prudence of the Turk Plant and remanded the issue back to the PUCT. In August 2018, SWEPCo filed a Motion for Reconsideration at the Court of Appeals, which was denied. In January 2019, SWEPCo and the PUCT filed petitions for review with the Texas Supreme Court. In May 2019, various intervenors filed replies to the petition. In July 2019, SWEPCo filed its response to these briefs. The Texas Supreme Court has requested full briefing by the parties. SWEPCo’s initial brief is due in October 2019. Response briefs are due in November 2019 and SWEPCo’s reply brief is due in December 2019. As of September 30, 2019, the net book value of Turk Plant was $1.5 billion, before cost of removal, including materials and supplies inventory and CWIP. SWEPCo’s Texas jurisdictional share of the Turk Plant investment is approximately 33%.
|
•
|
In July 2019, clean energy legislation which offers incentives for power-generating facilities with zero or reduced carbon emissions was signed into law by the Ohio Governor. The clean energy legislation phases out current energy efficiency and renewable mandates no later than 2020 and after 2026, respectively. The bill provides for the recovery of existing renewable energy contracts on a bypassable basis through 2032. The clean energy legislation also includes a provision for recovery of OVEC costs through 2030 which will be allocated to all electric distribution utilities on a non-bypassable basis. OPCo’s Inter-Company Power Agreement for OVEC terminates in June 2040. To the extent that OPCo is unable to recover the costs of renewable energy contracts on a bypassable basis by the end of 2032, recover costs of OVEC after 2030 or fully recover energy efficiency costs through 2020 it could reduce future net income and cash flows and impact financial condition.
|
|
|
|
|
Approved Revenue
|
|
Approved
|
|
New Rates
|
||
Company
|
|
Jurisdiction
|
|
Requirement Increase
|
|
ROE
|
|
Effective
|
||
|
|
|
|
(in millions)
|
|
|
|
|
||
APCo
|
|
West Virginia
|
|
$
|
35.8
|
|
|
9.75%
|
|
March 2019
|
WPCo
|
|
West Virginia
|
|
8.4
|
|
|
9.75%
|
|
March 2019
|
|
PSO
|
|
Oklahoma
|
|
46.0
|
|
|
9.4%
|
|
April 2019
|
|
|
|
|
|
|
|
|
|
|
Commission Staff/
|
||
|
|
|
|
Filing
|
|
Requested Revenue
|
|
Requested
|
|
Intervenor Range of
|
||
Company
|
|
Jurisdiction
|
|
Date
|
|
Requirement Increase
|
|
ROE
|
|
Recommended ROE
|
||
|
|
|
|
|
|
(in millions)
|
|
|
|
|
||
SWEPCo (a)
|
|
Arkansas
|
|
February 2019
|
|
$
|
67.0
|
|
|
10.5%
|
|
9% - 9.5%
|
AEP Texas
|
|
Texas
|
|
May 2019
|
|
56.0
|
|
|
10.5%
|
|
9% - 9.35%
|
|
I&M
|
|
Indiana
|
|
May 2019
|
|
172.0
|
|
|
10.5%
|
|
9% - 9.73%
|
|
I&M
|
|
Michigan
|
|
June 2019
|
|
58.4
|
|
|
10.5%
|
|
9.1% - 9.75%
|
(a)
|
In October 2019, SWEPCo, the APSC staff and various intervenors filed a stipulation and settlement agreement with the APSC that included a base rate increase of $24 million based upon a 9.45% return on common equity. See “2019 Arkansas Base Rate Case” section of Note 4 for additional information.
|
|
|
|
|
Generating
|
|
Amounts Pending
|
|||
Company
|
|
Plant Name and Unit
|
|
Capacity
|
|
Regulatory Approval
|
|||
|
|
|
|
(in MWs)
|
|
(in millions)
|
|||
APCo
|
|
Kanawha River Plant
|
|
400
|
|
|
$
|
43.8
|
|
APCo
|
|
Clinch River Plant, Unit 3
|
|
235
|
|
|
31.8
|
|
|
APCo (a)
|
|
Clinch River Plant, Units 1 and 2
|
|
470
|
|
|
29.2
|
|
|
APCo
|
|
Sporn Plant, Units 1 and 3
|
|
300
|
|
|
15.6
|
|
|
APCo
|
|
Glen Lyn Plant
|
|
335
|
|
|
13.5
|
|
|
SWEPCo (b)
|
|
Welsh Plant, Unit 2
|
|
528
|
|
|
50.6
|
|
|
Total
|
|
|
|
2,268
|
|
|
$
|
184.5
|
|
(a)
|
APCo obtained permits following the Virginia SCC’s and WVPSC’s approval to convert Clinch River Plant, Units 1 and 2 to natural gas. In 2015, APCo retired the coal-related assets of Clinch River Plant, Units 1 and 2. Clinch River Plant, Units 1 and 2 began operations as natural gas units in 2016.
|
(b)
|
In October 2019, SWEPCo filed a stipulation and settlement agreement with the APSC, which includes recovery of the remaining $15 million Arkansas jurisdictional share of the net book value of Welsh Plant, Unit 2. An order from the APSC is expected in the fourth quarter of 2019.
|
•
|
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.
|
•
|
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEP Texas and OPCo.
|
•
|
OPCo purchases energy and capacity at auction to serve SSO customers and provides transmission and distribution services for all connected load.
|
•
|
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
|
•
|
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.
|
•
|
Competitive generation in ERCOT and PJM.
|
•
|
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
|
•
|
Contracted renewable energy investments and management services.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Vertically Integrated Utilities
|
$
|
437.6
|
|
|
$
|
344.2
|
|
|
$
|
917.7
|
|
|
$
|
852.2
|
|
Transmission and Distribution Utilities
|
133.7
|
|
|
145.2
|
|
|
421.6
|
|
|
384.6
|
|
||||
AEP Transmission Holdco
|
126.1
|
|
|
73.3
|
|
|
404.8
|
|
|
278.4
|
|
||||
Generation & Marketing
|
90.0
|
|
|
5.3
|
|
|
139.5
|
|
|
62.3
|
|
||||
Corporate and Other
|
(53.9
|
)
|
|
9.6
|
|
|
(116.0
|
)
|
|
(17.1
|
)
|
||||
Earnings Attributable to AEP Common Shareholders
|
$
|
733.5
|
|
|
$
|
577.6
|
|
|
$
|
1,767.6
|
|
|
$
|
1,560.4
|
|
•
|
Favorable rate proceedings in AEP’s various jurisdictions.
|
•
|
An increase in weather-related usage.
|
•
|
An increase in transmission investment, which resulted in higher revenues and income.
|
•
|
Favorable rate proceedings in AEP’s various jurisdictions.
|
•
|
An increase in transmission investment, which resulted in higher revenues and income.
|
•
|
A decrease in weather-related usage.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Vertically Integrated Utilities
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
Revenues
|
|
$
|
2,645.5
|
|
|
$
|
2,636.7
|
|
|
$
|
7,172.6
|
|
|
$
|
7,393.7
|
|
Fuel and Purchased Electricity
|
|
874.2
|
|
|
1,034.6
|
|
|
2,430.2
|
|
|
2,700.4
|
|
||||
Gross Margin
|
|
1,771.3
|
|
|
1,602.1
|
|
|
4,742.4
|
|
|
4,693.3
|
|
||||
Other Operation and Maintenance
|
|
742.9
|
|
|
753.7
|
|
|
2,117.1
|
|
|
2,197.5
|
|
||||
Depreciation and Amortization
|
|
364.3
|
|
|
340.1
|
|
|
1,079.6
|
|
|
966.1
|
|
||||
Taxes Other Than Income Taxes
|
|
117.9
|
|
|
108.8
|
|
|
347.1
|
|
|
326.4
|
|
||||
Operating Income
|
|
546.2
|
|
|
399.5
|
|
|
1,198.6
|
|
|
1,203.3
|
|
||||
Other Income
|
|
0.9
|
|
|
4.1
|
|
|
4.4
|
|
|
14.2
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
12.2
|
|
|
9.3
|
|
|
38.9
|
|
|
24.0
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
17.0
|
|
|
18.0
|
|
|
50.8
|
|
|
53.7
|
|
||||
Interest Expense
|
|
(140.6
|
)
|
|
(149.2
|
)
|
|
(422.6
|
)
|
|
(428.0
|
)
|
||||
Income Before Income Tax Expense (Benefit) and Equity Earnings
|
|
435.7
|
|
|
281.7
|
|
|
870.1
|
|
|
867.2
|
|
||||
Income Tax Expense (Benefit)
|
|
(1.9
|
)
|
|
(63.1
|
)
|
|
(48.4
|
)
|
|
12.9
|
|
||||
Equity Earnings of Unconsolidated Subsidiary
|
|
0.8
|
|
|
0.8
|
|
|
2.3
|
|
|
2.0
|
|
||||
Net Income
|
|
438.4
|
|
|
345.6
|
|
|
920.8
|
|
|
856.3
|
|
||||
Net Income Attributable to Noncontrolling Interests
|
|
0.8
|
|
|
1.4
|
|
|
3.1
|
|
|
4.1
|
|
||||
Earnings Attributable to AEP Common Shareholders
|
|
$
|
437.6
|
|
|
$
|
344.2
|
|
|
$
|
917.7
|
|
|
$
|
852.2
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
9,254
|
|
|
8,988
|
|
|
24,785
|
|
|
26,105
|
|
Commercial
|
6,840
|
|
|
6,723
|
|
|
18,183
|
|
|
18,699
|
|
Industrial
|
9,123
|
|
|
9,107
|
|
|
26,533
|
|
|
26,757
|
|
Miscellaneous
|
641
|
|
|
621
|
|
|
1,734
|
|
|
1,762
|
|
Total Retail (a)
|
25,858
|
|
|
25,439
|
|
|
71,235
|
|
|
73,323
|
|
|
|
|
|
|
|
|
|
||||
Wholesale (b)
|
5,864
|
|
|
6,432
|
|
|
16,494
|
|
|
17,156
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
31,722
|
|
|
31,871
|
|
|
87,729
|
|
|
90,479
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Includes Off-system Sales, municipalities and cooperatives, unit power and other wholesale customers.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Eastern Region
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
1,670
|
|
|
1,844
|
|
Normal – Heating (b)
|
5
|
|
|
5
|
|
|
1,742
|
|
|
1,745
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
937
|
|
|
878
|
|
|
1,316
|
|
|
1,364
|
|
Normal – Cooling (b)
|
732
|
|
|
730
|
|
|
1,070
|
|
|
1,063
|
|
|
|
|
|
|
|
|
|
||||
Western Region
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
967
|
|
|
974
|
|
Normal – Heating (b)
|
1
|
|
|
1
|
|
|
902
|
|
|
908
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
1,572
|
|
|
1,443
|
|
|
2,234
|
|
|
2,380
|
|
Normal – Cooling (b)
|
1,402
|
|
|
1,402
|
|
|
2,129
|
|
|
2,121
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Cooling degree days are calculated on a 65 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Earnings Attributable to AEP Common Shareholders from Vertically Integrated Utilities
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
344.2
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
145.1
|
|
|
Margins from Off-system Sales
|
|
(0.9
|
)
|
|
Transmission Revenues
|
|
23.8
|
|
|
Other Revenues
|
|
1.2
|
|
|
Total Change in Gross Margin
|
|
169.2
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
10.8
|
|
|
Depreciation and Amortization
|
|
(24.2
|
)
|
|
Taxes Other Than Income Taxes
|
|
(9.1
|
)
|
|
Other Income
|
|
(3.2
|
)
|
|
Allowance for Equity Funds Used During Construction
|
|
2.9
|
|
|
Non-Service Cost Components of Net Periodic Pension Cost
|
|
(1.0
|
)
|
|
Interest Expense
|
|
8.6
|
|
|
Total Change in Expenses and Other
|
|
(15.2
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(61.2
|
)
|
|
Net Income Attributable to Noncontrolling Interests
|
|
0.6
|
|
|
|
|
|
||
Third Quarter of 2019
|
|
$
|
437.6
|
|
•
|
Retail Margins increased $145 million primarily due to the following:
|
•
|
A $91 million increase at APCo and WPCo due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $23 million increase in weather-related usage primarily in the residential class.
|
•
|
A $15 million increase at APCo in deferred fuel related to recoverable PJM expenses that were offset below.
|
•
|
A $10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense at APCo in the prior year.
|
•
|
A $4 million increase in weather-normalized retail margins across all classes.
|
•
|
The effect of rate proceedings in AEP’s service territories which included:
|
•
|
A $19 million increase from rate proceedings at I&M. This increase was partially offset in other expense items below.
|
•
|
A $14 million increase at PSO due to new base rates implemented in April 2019.
|
•
|
A $10 million increase at APCo and WPCo due to revenue primarily from rate riders in West Virginia. This increase was offset in other expense items below.
|
•
|
An $8 million increase related to rider revenues at I&M, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below.
|
•
|
A $7 million increase at APCo and WPCo due to base rate increases in West Virginia implemented in March 2019.
|
•
|
A $74 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
•
|
Transmission Revenues increased $24 million primarily due to the following:
|
•
|
A $16 million increase due to SPP provisions for refund recorded in 2018.
|
•
|
A $16 million increase primarily due to 2018 PJM provisions for refunds mainly at APCo.
|
•
|
An $8 million decrease primarily due to a reduction in SPP Base Plan Funding revenues and a decrease in nonaffiliated transmission services.
|
•
|
Other Operation and Maintenance expenses decreased $11 million primarily due to the following:
|
•
|
A $40 million decrease at APCo and WPCo due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement.
|
•
|
A $12 million decrease in planned plant outage and maintenance expenses primarily at APCo and I&M.
|
•
|
A $9 million decrease due to Wind Catcher Project expenses incurred in 2018 for SWEPCo and PSO.
|
•
|
A $3 million decrease in recoverable expenses primarily associated with Energy Efficiency/Demand Response and storm expenses fully recovered in rate riders/trackers within Gross Margin above.
|
•
|
A $45 million increase due to PJM transmission services including the annual formula rate true-up.
|
•
|
An $8 million increase due to the modification of the NSR consent decree impacting I&M and AEGCo.
|
•
|
A $2 million increase due to North Central Wind Energy Facilities expenses for SWEPCo and PSO.
|
•
|
Depreciation and Amortization expenses increased $24 million primarily due to a higher depreciable base and increased depreciation rates approved at APCo, I&M and SWEPCo.
|
•
|
Taxes Other Than Income Taxes increased $9 million primarily due to the following:
|
•
|
A $5 million increase in property taxes driven by an increase in utility plant.
|
•
|
A $5 million increase in West Virginia business and occupational taxes at APCo and WPCo.
|
•
|
Interest Expense decreased $9 million primarily due to lower interest rates on outstanding long-term debt at I&M and SWEPCo.
|
•
|
Income Tax Expense (Benefit) increased $61 million primarily due to the one time recognition of $86 million of additional amortization of Excess ADIT as a result of the West Virginia Tax Reform order received in the third quarter of 2018. The additional excess amortization from the West Virginia Tax Reform order was partially offset in Retail Margins and Other Operation and Maintenance expenses above.
|
•
|
Retail Margins increased $75 million primarily due to the following:
|
•
|
A $91 million increase at APCo and WPCo due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $12 million increase at APCo in deferred fuel related to recoverable PJM expenses that were offset below.
|
•
|
A $10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense at APCo in the prior year.
|
•
|
A $6 million decrease at I&M in fuel-related expenses due to timing of recovery for fuel and other variable production costs related to wholesale contracts.
|
•
|
The effect of rate proceedings in AEP’s service territories which included:
|
•
|
A $94 million increase from rate proceedings at I&M, inclusive of a $30 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below.
|
•
|
A $35 million increase at PSO due to new base rates implemented in April 2019 and March 2018.
|
•
|
A $21 million increase related to rider revenues at I&M, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below.
|
•
|
A $17 million increase at APCo and WPCo primarily due to revenue from rate riders in West Virginia. This increase was offset in other expense items below.
|
•
|
A $14 million increase at APCo and WPCo due to base rate increases in West Virginia implemented in March 2019.
|
•
|
A $7 million increase at SWEPCo primarily due to rider and base rate revenue increases in Louisiana. The increase in rider rates had increases in other expense items below.
|
•
|
A $4 million increase in rider revenues at KPCo offset in other expense items below.
|
•
|
A $117 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $73 million decrease in weather-related usage across all regions primarily in the residential class.
|
•
|
A $67 million decrease in weather-normalized retail margins across all classes.
|
•
|
Margins from Off-system Sales decreased $10 million primarily due to mid-year 2018 changes in the OSS sharing mechanism at I&M.
|
•
|
Transmission Revenues decreased $16 million primarily due to the following:
|
•
|
A $40 million decrease in SWEPCo’s annual SPP Transmission formula rate true-up.
|
•
|
A $12 million decrease primarily due to I&M’s annual PJM Transmission formula rate true-up.
|
•
|
An $11 million decrease primarily due to a reduction in SPP Base Plan Funding revenues.
|
•
|
A $36 million increase primarily due to 2018 PJM provisions for refund mainly at APCo.
|
•
|
A $16 million increase due to a provision for refund recorded at PSO and SWEPCo in 2018 related to certain transmission assets that management believes should not have been included in the SPP formula rate.
|
•
|
Other Operation and Maintenance expenses decreased $80 million primarily due to the following:
|
•
|
A $56 million decrease due to SPP transmission services including the annual formula rate true-up.
|
•
|
A $47 million decrease in planned plant outage and maintenance expenses primarily for I&M, APCo, SWEPCo and KPCo.
|
•
|
A $40 million decrease due to Wind Catcher Project expenses incurred in 2018 for SWEPCo and PSO.
|
•
|
A $40 million decrease at APCo and WPCo due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement.
|
•
|
A $25 million decrease in recoverable expenses primarily associated with Energy Efficiency/Demand Response and storm expenses fully recovered in rate riders/trackers within Gross Margin above.
|
•
|
A $10 million decrease in expense at APCo due to lower current year amortization of certain regulatory assets that were extinguished in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement.
|
•
|
A $9 million decrease in estimated expense for claims related to asbestos exposure.
|
•
|
A $92 million increase due to PJM transmission services including the annual formula rate true-up.
|
•
|
A $23 million increase in employee-related expenses.
|
•
|
A $13 million increase at APCo due to 2019 contributions to benefit low income West Virginia residential customers as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below.
|
•
|
An $8 million increase in storm-related expenses primarily at SWEPCo.
|
•
|
An $8 million increase due to the modification of the NSR consent decree impacting I&M and AEGCo.
|
•
|
A $5 million increase due to North Central Wind Energy Facilities expenses for SWEPCo and PSO.
|
•
|
Depreciation and Amortization expenses increased $114 million primarily due to a higher depreciable base and increased depreciation rates approved at I&M, APCo, SWEPCo and PSO.
|
•
|
Taxes Other Than Income Taxes increased $21 million primarily due to the following:
|
•
|
A $14 million increase in property taxes driven by an increase in utility plant.
|
•
|
A $9 million increase at APCo and WPCo in West Virginia business and occupational taxes.
|
•
|
Other Income decreased $10 million primarily due to a decrease in carrying charges for certain riders at I&M.
|
•
|
Allowance for Equity Funds Used During Construction increased $15 million primarily due to the following:
|
•
|
A $10 million increase primarily due to various increases in equity rates at I&M, APCo and PSO and increased projects at I&M.
|
•
|
A $3 million increase due to recent FERC audit findings.
|
•
|
A $2 million increase due to the FERC’s approval of a settlement agreement.
|
•
|
Interest Expense decreased $5 million primarily due to the following:
|
•
|
A $16 million decrease due to lower interest rates on outstanding long-term debt at I&M and SWEPCo.
|
•
|
An $11 million increase primarily due to higher long-term debt balances mainly at APCo and PSO.
|
•
|
Income Tax Expense (Benefit) decreased $61 million primarily due to additional amortization of Excess ADIT as a result of finalized rate orders. The excess amortization is partially offset within Gross Margin and Other Operation and Maintenance above.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Transmission and Distribution Utilities
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
Revenues
|
|
$
|
1,186.6
|
|
|
$
|
1,211.5
|
|
|
$
|
3,454.3
|
|
|
$
|
3,510.9
|
|
Purchased Electricity
|
|
210.1
|
|
|
218.7
|
|
|
603.5
|
|
|
660.0
|
|
||||
Amortization of Generation Deferrals
|
|
8.8
|
|
|
56.9
|
|
|
65.3
|
|
|
171.9
|
|
||||
Gross Margin
|
|
967.7
|
|
|
935.9
|
|
|
2,785.5
|
|
|
2,679.0
|
|
||||
Other Operation and Maintenance
|
|
405.8
|
|
|
420.4
|
|
|
1,222.1
|
|
|
1,152.1
|
|
||||
Depreciation and Amortization
|
|
209.3
|
|
|
201.4
|
|
|
586.4
|
|
|
558.4
|
|
||||
Taxes Other Than Income Taxes
|
|
151.8
|
|
|
143.2
|
|
|
437.2
|
|
|
413.2
|
|
||||
Operating Income
|
|
200.8
|
|
|
170.9
|
|
|
539.8
|
|
|
555.3
|
|
||||
Interest and Investment Income
|
|
1.1
|
|
|
1.3
|
|
|
4.2
|
|
|
2.6
|
|
||||
Carrying Costs Income
|
|
0.3
|
|
|
0.2
|
|
|
0.7
|
|
|
1.5
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
9.8
|
|
|
7.8
|
|
|
22.3
|
|
|
23.0
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
7.7
|
|
|
8.3
|
|
|
22.8
|
|
|
24.6
|
|
||||
Interest Expense
|
|
(63.6
|
)
|
|
(63.5
|
)
|
|
(170.8
|
)
|
|
(185.6
|
)
|
||||
Income Before Income Tax Expense (Benefit)
|
|
156.1
|
|
|
125.0
|
|
|
419.0
|
|
|
421.4
|
|
||||
Income Tax Expense (Benefit)
|
|
22.4
|
|
|
(20.2
|
)
|
|
(2.6
|
)
|
|
36.8
|
|
||||
Net Income
|
|
133.7
|
|
|
145.2
|
|
|
421.6
|
|
|
384.6
|
|
||||
Net Income Attributable to Noncontrolling Interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Earnings Attributable to AEP Common Shareholders
|
|
$
|
133.7
|
|
|
$
|
145.2
|
|
|
$
|
421.6
|
|
|
$
|
384.6
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
8,268
|
|
|
7,948
|
|
|
20,614
|
|
|
21,154
|
|
Commercial
|
7,219
|
|
|
6,958
|
|
|
19,069
|
|
|
19,061
|
|
Industrial
|
5,857
|
|
|
5,904
|
|
|
17,492
|
|
|
17,772
|
|
Miscellaneous
|
223
|
|
|
209
|
|
|
595
|
|
|
574
|
|
Total Retail (a)(b)
|
21,567
|
|
|
21,019
|
|
|
57,770
|
|
|
58,561
|
|
|
|
|
|
|
|
|
|
||||
Wholesale (c)
|
453
|
|
|
634
|
|
|
1,531
|
|
|
1,835
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
22,020
|
|
|
21,653
|
|
|
59,301
|
|
|
60,396
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Represents energy delivered to distribution customers.
|
(c)
|
Primarily Ohio’s contractually obligated purchases of OVEC power sold to PJM.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Eastern Region
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
2,006
|
|
|
2,158
|
|
Normal – Heating (b)
|
6
|
|
|
6
|
|
|
2,072
|
|
|
2,076
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
872
|
|
|
864
|
|
|
1,176
|
|
|
1,322
|
|
Normal – Cooling (b)
|
672
|
|
|
670
|
|
|
973
|
|
|
964
|
|
|
|
|
|
|
|
|
|
||||
Western Region
|
|
|
|
|
|
|
|
|
|
|
|
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
180
|
|
|
234
|
|
Normal – Heating (b)
|
—
|
|
|
—
|
|
|
190
|
|
|
194
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (d)
|
1,587
|
|
|
1,424
|
|
|
2,679
|
|
|
2,612
|
|
Normal – Cooling (b)
|
1,368
|
|
|
1,367
|
|
|
2,425
|
|
|
2,413
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Eastern Region cooling degree days are calculated on a 65 degree temperature base.
|
(d)
|
Western Region cooling degree days are calculated on a 70 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Earnings Attributable to AEP Common Shareholders from Transmission and Distribution Utilities
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
145.2
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
2.2
|
|
|
Margins from Off-system Sales
|
|
4.6
|
|
|
Transmission Revenues
|
|
17.3
|
|
|
Other Revenues
|
|
7.7
|
|
|
Total Change in Gross Margin
|
|
31.8
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
14.6
|
|
|
Depreciation and Amortization
|
|
(7.9
|
)
|
|
Taxes Other Than Income Taxes
|
|
(8.6
|
)
|
|
Interest and Investment Income
|
|
(0.2
|
)
|
|
Carrying Costs Income
|
|
0.1
|
|
|
Allowance for Equity Funds Used During Construction
|
|
2.0
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.6
|
)
|
|
Interest Expense
|
|
(0.1
|
)
|
|
Total Change in Expenses and Other
|
|
(0.7
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(42.6
|
)
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
133.7
|
|
•
|
Retail Margins increased $2 million primarily due to the following:
|
•
|
A $27 million net increase primarily due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $12 million increase due to the recovery of higher current year losses from a power contract with OVEC in Ohio. This increase was offset in Margins from Off-system Sales below.
|
•
|
A $9 million increase in revenues associated with Ohio smart grid riders. This increase was partially offset in other expense items below.
|
•
|
An $8 million increase in weather-related usage in Texas primarily due to an 11% increase in cooling degree days.
|
•
|
A $6 million increase in weather-normalized margins primarily in the residential class.
|
•
|
A $4 million increase in Ohio rider revenues associated with the DIR. This decrease was partially offset in other expense items below.
|
•
|
A $3 million increase in Ohio Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset by a corresponding increase in Other Operation and Maintenance expenses below.
|
•
|
A $28 million net decrease in Ohio Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below.
|
•
|
A $13 million decrease in Ohio Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below.
|
•
|
An $8 million net decrease in margin in Ohio for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019.
|
•
|
A $6 million decrease in revenues associated with a vegetation management rider in Ohio. This decrease was offset in Other Operation and Maintenance expenses below.
|
•
|
A $6 million net decrease in margin in Ohio for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019.
|
•
|
A $6 million decrease in affiliated PPA capacity revenues in Texas. This decrease was offset in Margins from Off-system Sales below.
|
•
|
Margins from Off-system Sales increased $5 million primarily due to the following:
|
•
|
A $17 million increase due to higher affiliated PPA revenues in Texas. This increase was partially offset by in Other Operation and Maintenance expenses below.
|
•
|
A $12 million decrease primarily due to higher current year losses from a power contract with OVEC and lower deferrals as a result of the OVEC PPA rider in Ohio. This decrease was offset in Retail Margins above.
|
•
|
Transmission Revenues increased $17 million primarily due to the recovery of increased transmission investment in ERCOT.
|
•
|
Other Revenues increased $8 million primarily due to securitization revenue related to Transition Funding. This decrease was offset below in Depreciation and Amortization expenses and in Interest Expense.
|
•
|
Other Operation and Maintenance expenses decreased $15 million primarily due to the following:
|
•
|
A $29 million decrease in transmission expenses that were fully recovered in rate riders/trackers in Gross Margin above.
|
•
|
A $4 million decrease due to higher charitable contributions in 2018 in Ohio.
|
•
|
A $16 million increase in affiliated PPA expenses in Texas. This increase was offset by an increase in Margins from Off-system Sales above.
|
•
|
A $12 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
•
|
Depreciation and Amortization expenses increased $8 million primarily due to the following:
|
•
|
A $15 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
•
|
A $7 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below.
|
•
|
An $8 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider in Ohio which ended in the second quarter of 2019. This decrease was offset in Retail Margins above.
|
•
|
A $6 million decrease in Ohio recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
•
|
Taxes Other Than Income Taxes increased $9 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates.
|
•
|
Interest Expense was unchanged primarily due to the following:
|
•
|
A $5 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019.
|
•
|
A $3 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset in Other Revenues and Depreciation and Amortization expenses above.
|
•
|
A $6 million increase due to higher long-term debt balances.
|
•
|
Income Tax Expense (Benefit) decreased $43 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above.
|
•
|
Retail Margins decreased $9 million primarily due to the following:
|
•
|
A $71 million net decrease in Ohio Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below.
|
•
|
An $18 million decrease in revenues associated with a vegetation management rider in Ohio. This decrease was offset in Other Operation and Maintenance expenses below.
|
•
|
A $17 million decrease in affiliated PPA capacity revenues in Texas. This decrease was offset in Margins from Off-system Sales below.
|
•
|
A $16 million net decrease in margin in Ohio for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019.
|
•
|
A $13 million decrease in Ohio Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below.
|
•
|
A $12 million net decrease in margin in Ohio for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019.
|
•
|
A $7 million decrease in Texas revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset in Other Operation and Maintenance expenses below.
|
•
|
A $5 million decrease in weather-related usage in Texas primarily due to a 23% decrease in heating degree days partially offset by a 3% increase in cooling degree days.
|
•
|
A $4 million decrease in Ohio rider revenues associated with the DIR. This decrease was partially offset in other expense items below.
|
•
|
A $58 million increase due to a reversal of a regulatory provision in Ohio.
|
•
|
A $33 million net increase due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $31 million increase in revenues associated with Ohio smart grid riders. This increase was partially offset in other expense items below.
|
•
|
A $21 million increase due to the recovery of higher current year losses from a power contract with OVEC in Ohio. This increase was offset in Margins from Off-system Sales below.
|
•
|
A $9 million increase in Ohio Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset in Other Operation and Maintenance expenses below.
|
•
|
Margins from Off-system Sales increased $39 million primarily due to the following:
|
•
|
A $59 million increase due to higher affiliated PPA revenues in Texas. This increase was partially offset in Other Operation and Maintenance expenses below.
|
•
|
A $21 million decrease primarily due to higher current year losses from a power contract with OVEC as a result of the OVEC PPA rider in Ohio. This decrease was offset in Retail Margins above.
|
•
|
Transmission Revenues increased $68 million primarily due to the following:
|
•
|
A $62 million increase primarily due to recovery of increased transmission investment in ERCOT.
|
•
|
A $6 million increase in Ohio primarily due to 2018 provisions for refunds.
|
•
|
Other Revenues increased $9 million primarily due to distribution connection fees and pole attachment revenues.
|
•
|
Other Operation and Maintenance expenses increased $70 million primarily due to the following:
|
•
|
A $64 million increase in expense due to the partial amortization of the Texas Storm Cost Securitization regulatory asset as a result of the final PUCT order in the Texas Storm Cost Case. This increase was offset in Income Tax Expense (Benefit) below.
|
•
|
A $57 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
•
|
A $49 million increase in affiliated PPA expenses in Texas. This increase was offset in Margins from Off-system Sales above.
|
•
|
A $93 million decrease in transmission expenses that were fully recovered in rate riders/trackers in Gross Margin above.
|
•
|
Depreciation and Amortization expenses increased $28 million primarily due to the following:
|
•
|
A $51 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
•
|
A $9 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below.
|
•
|
A $7 million increase in depreciation expense related to the Oklaunion Power Station.
|
•
|
A $30 million decrease in Ohio recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
•
|
An $11 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider which ended in the second quarter of 2019. This decrease was offset in Retail Margins above.
|
•
|
Taxes Other Than Income Taxes increased $24 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates.
|
•
|
Interest Expense decreased $15 million primarily due to the following:
|
•
|
A $21 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019.
|
•
|
An $8 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset in Other Revenues and Depreciation and Amortization expenses above.
|
•
|
A $14 million increase due to higher long-term debt balances.
|
•
|
Income Tax Expense (Benefit) decreased $39 million primarily due to the following:
|
•
|
A $64 million decrease due to the amortization of Excess ADIT not subject to normalization requirements as approved in the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. This increase was offset in Other Operation and Maintenance expenses above.
|
•
|
A $30 million increase primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
AEP Transmission Holdco
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
Transmission Revenues
|
|
$
|
273.0
|
|
|
$
|
187.2
|
|
|
$
|
808.3
|
|
|
$
|
605.2
|
|
Other Operation and Maintenance
|
|
31.8
|
|
|
30.9
|
|
|
77.0
|
|
|
76.2
|
|
||||
Depreciation and Amortization
|
|
47.3
|
|
|
34.4
|
|
|
133.7
|
|
|
100.0
|
|
||||
Taxes Other Than Income Taxes
|
|
44.3
|
|
|
36.3
|
|
|
130.4
|
|
|
106.5
|
|
||||
Operating Income
|
|
149.6
|
|
|
85.6
|
|
|
467.2
|
|
|
322.5
|
|
||||
Other Income
|
|
0.8
|
|
|
0.4
|
|
|
2.3
|
|
|
1.1
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
21.0
|
|
|
13.8
|
|
|
61.1
|
|
|
45.4
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
0.7
|
|
|
0.7
|
|
|
2.0
|
|
|
2.1
|
|
||||
Interest Expense
|
|
(27.8
|
)
|
|
(24.2
|
)
|
|
(73.8
|
)
|
|
(66.8
|
)
|
||||
Income Before Income Tax Expense and Equity Earnings
|
|
144.3
|
|
|
76.3
|
|
|
458.8
|
|
|
304.3
|
|
||||
Income Tax Expense
|
|
35.4
|
|
|
19.2
|
|
|
105.7
|
|
|
75.0
|
|
||||
Equity Earnings of Unconsolidated Subsidiary
|
|
18.1
|
|
|
17.1
|
|
|
54.5
|
|
|
51.6
|
|
||||
Net Income
|
|
127.0
|
|
|
74.2
|
|
|
407.6
|
|
|
280.9
|
|
||||
Net Income Attributable to Noncontrolling Interests
|
|
0.9
|
|
|
0.9
|
|
|
2.8
|
|
|
2.5
|
|
||||
Earnings Attributable to AEP Common Shareholders
|
|
$
|
126.1
|
|
|
$
|
73.3
|
|
|
$
|
404.8
|
|
|
$
|
278.4
|
|
|
|
September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
Plant in Service
|
|
$
|
7,796.9
|
|
|
$
|
6,307.3
|
|
Construction Work in Progress
|
|
1,903.4
|
|
|
1,823.0
|
|
||
Accumulated Depreciation and Amortization
|
|
383.7
|
|
|
244.3
|
|
||
Total Transmission Property, Net
|
|
$
|
9,316.6
|
|
|
$
|
7,886.0
|
|
Third Quarter of 2018
|
|
$
|
73.3
|
|
|
|
|
||
Changes in Transmission Revenues:
|
|
|
||
Transmission Revenues
|
|
85.8
|
|
|
Total Change in Transmission Revenues
|
|
85.8
|
|
|
|
|
|
||
Changes in Expenses and Other:
|
|
|
||
Other Operation and Maintenance
|
|
(0.9
|
)
|
|
Depreciation and Amortization
|
|
(12.9
|
)
|
|
Taxes Other Than Income Taxes
|
|
(8.0
|
)
|
|
Other Income
|
|
0.4
|
|
|
Allowance for Equity Funds Used During Construction
|
|
7.2
|
|
|
Interest Expense
|
|
(3.6
|
)
|
|
Total Change in Expenses and Other
|
|
(17.8
|
)
|
|
|
|
|
||
Income Tax Expense
|
|
(16.2
|
)
|
|
Equity Earnings of Unconsolidated Subsidiary
|
|
1.0
|
|
|
|
|
|
||
Third Quarter of 2019
|
|
$
|
126.1
|
|
•
|
Transmission Revenues increased $86 million primarily due to continued investment in transmission assets.
|
•
|
Depreciation and Amortization expenses increased $13 million primarily due to a higher depreciable base.
|
•
|
Taxes Other Than Income Taxes increased $8 million primarily due to higher property taxes as a result of increased transmission investment.
|
•
|
Allowance for Equity Funds Used During Construction increased $7 million primarily due to higher CWIP balances.
|
•
|
Interest Expense increased $4 million primarily due to higher long-term debt balances.
|
•
|
Income Tax Expense increased $16 million primarily due to higher pretax book income.
|
Nine Months Ended September 30, 2018
|
|
$
|
278.4
|
|
|
|
|
||
Changes in Transmission Revenues:
|
|
|
||
Transmission Revenues
|
|
203.1
|
|
|
Total Change in Transmission Revenues
|
|
203.1
|
|
|
|
|
|
||
Changes in Expenses and Other:
|
|
|
||
Other Operation and Maintenance
|
|
(0.8
|
)
|
|
Depreciation and Amortization
|
|
(33.7
|
)
|
|
Taxes Other Than Income Taxes
|
|
(23.9
|
)
|
|
Other Income
|
|
1.2
|
|
|
Allowance for Equity Funds Used During Construction
|
|
15.7
|
|
|
Non-Service Cost Components of Net Periodic Pension Cost
|
|
(0.1
|
)
|
|
Interest Expense
|
|
(7.0
|
)
|
|
Total Change in Expenses and Other
|
|
(48.6
|
)
|
|
|
|
|
||
Income Tax Expense
|
|
(30.7
|
)
|
|
Equity Earnings of Unconsolidated Subsidiary
|
|
2.9
|
|
|
Net Income Attributable to Noncontrolling Interests
|
|
(0.3
|
)
|
|
|
|
|
||
Nine Months Ended September 30, 2019
|
|
$
|
404.8
|
|
•
|
Transmission Revenues increased $203 million primarily due to continued investment in transmission assets.
|
•
|
Depreciation and Amortization expenses increased $34 million primarily due to a higher depreciable base.
|
•
|
Taxes Other Than Income Taxes increased $24 million primarily due to higher property taxes as a result of increased transmission investment.
|
•
|
Allowance for Equity Funds Used During Construction increased $16 million primarily due to the following:
|
•
|
A $13 million increase primarily due to higher CWIP balances.
|
•
|
A $12 million increase due to the FERC’s approval of a settlement agreement.
|
•
|
A $13 million decrease due to recent FERC audit findings.
|
•
|
Interest Expense increased $7 million primarily due to higher long-term debt balances.
|
•
|
Income Tax Expense increased $31 million primarily due to higher pretax book income with a partial offset due to the FERC’s approval of a settlement agreement.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Generation & Marketing
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
Revenues
|
|
$
|
533.7
|
|
|
$
|
521.6
|
|
|
$
|
1,428.2
|
|
|
$
|
1,487.4
|
|
Fuel, Purchased Electricity and Other
|
|
403.8
|
|
|
405.0
|
|
|
1,117.8
|
|
|
1,167.8
|
|
||||
Gross Margin
|
|
129.9
|
|
|
116.6
|
|
|
310.4
|
|
|
319.6
|
|
||||
Other Operation and Maintenance
|
|
44.0
|
|
|
68.2
|
|
|
158.0
|
|
|
192.6
|
|
||||
Asset Impairments and Other Related Charges
|
|
—
|
|
|
35.0
|
|
|
—
|
|
|
35.0
|
|
||||
Depreciation and Amortization
|
|
20.6
|
|
|
12.0
|
|
|
49.1
|
|
|
26.4
|
|
||||
Taxes Other Than Income Taxes
|
|
4.4
|
|
|
3.7
|
|
|
11.8
|
|
|
10.3
|
|
||||
Operating Income (Loss)
|
|
60.9
|
|
|
(2.3
|
)
|
|
91.5
|
|
|
55.3
|
|
||||
Interest and Investment Income
|
|
1.9
|
|
|
3.6
|
|
|
6.0
|
|
|
9.9
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
3.8
|
|
|
3.8
|
|
|
11.2
|
|
|
11.5
|
|
||||
Interest Expense
|
|
(10.5
|
)
|
|
(3.8
|
)
|
|
(21.5
|
)
|
|
(11.7
|
)
|
||||
Income Before Income Tax Expense (Benefit) and Equity Earnings (Loss)
|
|
56.1
|
|
|
1.3
|
|
|
87.2
|
|
|
65.0
|
|
||||
Income Tax Expense (Benefit)
|
|
(36.4
|
)
|
|
(3.6
|
)
|
|
(51.8
|
)
|
|
3.7
|
|
||||
Equity Earnings (Loss) of Unconsolidated Subsidiaries
|
|
(3.8
|
)
|
|
0.2
|
|
|
(5.9
|
)
|
|
0.5
|
|
||||
Net Income
|
|
88.7
|
|
|
5.1
|
|
|
133.1
|
|
|
61.8
|
|
||||
Net Loss Attributable to Noncontrolling Interests
|
|
(1.3
|
)
|
|
(0.2
|
)
|
|
(6.4
|
)
|
|
(0.5
|
)
|
||||
Earnings Attributable to AEP Common Shareholders
|
|
$
|
90.0
|
|
|
$
|
5.3
|
|
|
$
|
139.5
|
|
|
$
|
62.3
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of MWhs)
|
||||||||||
Fuel Type:
|
|
|
|
|
|
|
|
|
|
|
|
Coal
|
2
|
|
|
4
|
|
|
4
|
|
|
10
|
|
Renewables
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
Total MWhs
|
3
|
|
|
4
|
|
|
6
|
|
|
11
|
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Earnings Attributable to AEP Common Shareholders from Generation & Marketing
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
5.3
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Generation
|
|
(10.6
|
)
|
|
Retail, Trading and Marketing
|
|
12.9
|
|
|
Other Revenues
|
|
11.0
|
|
|
Total Change in Gross Margin
|
|
13.3
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
24.2
|
|
|
Asset Impairments and Other Related Charges
|
|
35.0
|
|
|
Depreciation and Amortization
|
|
(8.6
|
)
|
|
Taxes Other Than Income Taxes
|
|
(0.7
|
)
|
|
Interest and Investment Income
|
|
(1.7
|
)
|
|
Interest Expense
|
|
(6.7
|
)
|
|
Total Change in Expenses and Other
|
|
41.5
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
32.8
|
|
|
Equity Earnings (Loss) of Unconsolidated Subsidiaries
|
|
(4.0
|
)
|
|
Net Loss Attributable to Noncontrolling Interests
|
|
1.1
|
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
90.0
|
|
•
|
Generation decreased $11 million primarily due to reduction in capacity revenues in 2019 partially due to the retirement of Conesville Units 5 & 6 in 2019.
|
•
|
Retail, Trading and Marketing increased $13 million due to higher trading and marketing activity in 2019.
|
•
|
Other Revenues increased $11 million primarily due to the Sempra Renewables LLC acquisition and other renewable projects placed in-service.
|
•
|
Other Operation and Maintenance expenses decreased $24 million due to the following:
|
•
|
A $20 million decrease due to the retirement of Conesville Units 5 & 6 in 2019.
|
•
|
An $11 million decrease due to the retirement of Stuart Plant in June of 2018.
|
•
|
A $7 million increase due to the acquisitions of Sempra Renewables LLC and Santa Rita East.
|
•
|
Asset Impairment and Other Related Charges decreased $35 million due to the impairment of Racine in the third quarter of 2018.
|
•
|
Depreciation and Amortization expenses increased $9 million due to a higher depreciable base from increased investments in wind farms and renewable energy sources.
|
•
|
Interest Expense increased $7 million primarily due to increased borrowing costs related to the Sempra Renewables LLC acquisition.
|
•
|
Income Tax Expense (Benefit) decreased $33 million primarily due to an increase in projected renewable PTC primarily driven by the Sempra Renewables LLC acquisition partially offset by an increase in pretax book income.
|
•
|
Equity Earnings (Loss) of Unconsolidated Subsidiaries decreased $4 million primarily due to the Sempra Renewables LLC acquisition.
|
•
|
Generation decreased $55 million primarily due to the reduction of capacity revenues and energy margins in 2019, a reduction in revenues due to the retirement of the Stuart Plant in 2018 and the retirement of Conesville Units 5 & 6 in 2019.
|
•
|
Retail, Trading and Marketing increased $28 million primarily due to higher retail margins due to lower market costs and higher delivered volumes and higher marketing activity in 2019.
|
•
|
Other Revenues increased $18 million primarily due to the Sempra Renewables LLC acquisition and other renewable projects placed in-service.
|
•
|
Other Operation and Maintenance expenses decreased $35 million due to the following:
|
•
|
A $40 million decrease due to the retirement of Conesville Units 5 & 6 in 2019.
|
•
|
A $15 million decrease due to the retirement of Stuart Plant in June of 2018.
|
•
|
A $20 million increase due to the acquisitions of Sempra Renewables LLC and Santa Rita East.
|
•
|
Asset Impairment and Other Related Charges decreased $35 million due to the impairment of Racine in the third quarter of 2018.
|
•
|
Depreciation and Amortization expenses increased $23 million due to a higher depreciable base from increased investments in wind farms and renewable energy sources.
|
•
|
Interest and Investment Income decreased $4 million primarily due to a reduction in Advances to Affiliates which was driven by a dividend payment made to Parent in 2018.
|
•
|
Interest Expense increased $10 million primarily due to increased borrowing costs related to the Sempra Renewables LLC acquisition.
|
•
|
Income Tax Expense (Benefit) decreased $56 million primarily due to an increase in projected renewable PTC primarily driven by the Sempra Renewables LLC acquisition partially offset by an increase in pretax book income.
|
•
|
Equity Earnings (Loss) of Unconsolidated Subsidiaries decreased $6 million primarily due to the Sempra Renewables LLC acquisition.
|
•
|
Net Loss Attributable to Noncontrolling Interests increased $6 million primarily due to the Sempra Renewables LLC acquisition.
|
•
|
A $40 million increase in income tax expense due to an increase in consolidating tax adjustments. This increase is offset primarily within the Generation & Marketing segment.
|
•
|
A $20 million increase in interest expense as a result of increased debt outstanding.
|
•
|
A $63 million increase in income tax expense primarily due to the following:
|
•
|
A $30 million increase due to an increase in consolidating tax adjustments. This increase is offset primarily within the Generation & Marketing segment.
|
•
|
An $18 million increase related to the enactment of the Kentucky state tax legislation in the second quarter of 2018.
|
•
|
A $10 million increase due to an increase in the allocation of the parent company loss benefit due to the tax sharing agreement with AEP Subsidiaries.
|
•
|
A $5 million increase due to the current year revaluation of AEP’s state deferred tax liability as a result of the state income tax filing requirement in Kansas associated with the Sempra Renewables LLC acquisition.
|
•
|
A $55 million increase in interest expense as a result of increased debt outstanding.
|
•
|
A $5 million impairment of an equity investment and related assets in 2019.
|
•
|
A $20 million impairment of an equity investment and related assets in 2018.
|
•
|
An $8 million increase in interest income due to a higher return on investments held by EIS.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
(dollars in millions)
|
||||||||||||
Long-term Debt, including amounts due within one year
|
$
|
25,881.2
|
|
|
53.5
|
%
|
|
$
|
23,346.7
|
|
|
52.7
|
%
|
Short-term Debt
|
2,510.0
|
|
|
5.2
|
|
|
1,910.0
|
|
|
4.3
|
|
||
Total Debt
|
28,391.2
|
|
|
58.7
|
|
|
25,256.7
|
|
|
57.0
|
|
||
AEP Common Equity
|
19,716.4
|
|
|
40.7
|
|
|
19,028.4
|
|
|
42.9
|
|
||
Noncontrolling Interests
|
281.3
|
|
|
0.6
|
|
|
31.0
|
|
|
0.1
|
|
||
Total Debt and Equity Capitalization
|
$
|
48,388.9
|
|
|
100.0
|
%
|
|
$
|
44,316.1
|
|
|
100.0
|
%
|
|
|
Amount
|
|
Maturity
|
||
Commercial Paper Backup:
|
(in millions)
|
|
|
|||
|
Revolving Credit Facility
|
$
|
4,000.0
|
|
|
June 2022
|
Cash and Cash Equivalents
|
348.8
|
|
|
|
||
Total Liquidity Sources
|
4,348.8
|
|
|
|
||
Less:
|
AEP Commercial Paper Outstanding
|
1,760.0
|
|
|
|
|
|
|
|
|
|
||
Net Available Liquidity
|
$
|
2,588.8
|
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
$
|
444.1
|
|
|
$
|
412.6
|
|
Net Cash Flows from Operating Activities
|
3,349.9
|
|
|
3,932.6
|
|
||
Net Cash Flows Used for Investing Activities
|
(5,357.6
|
)
|
|
(4,688.7
|
)
|
||
Net Cash Flows from Financing Activities
|
2,053.4
|
|
|
1,281.0
|
|
||
Net Increase in Cash, Cash Equivalents and Restricted Cash
|
45.7
|
|
|
524.9
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
489.8
|
|
|
$
|
937.5
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Net Income
|
$
|
1,767.1
|
|
|
$
|
1,566.5
|
|
Non-Cash Adjustments to Net Income (a)
|
1,838.8
|
|
|
1,728.7
|
|
||
Mark-to-Market of Risk Management Contracts
|
(41.6
|
)
|
|
(95.4
|
)
|
||
Property Taxes
|
341.7
|
|
|
304.8
|
|
||
Deferred Fuel Over/Under-Recovery, Net
|
93.7
|
|
|
210.6
|
|
||
Recovery of Ohio Capacity Costs
|
34.1
|
|
|
52.7
|
|
||
Refund of Global Settlement
|
(12.4
|
)
|
|
(5.5
|
)
|
||
Change in Other Noncurrent Assets
|
(9.6
|
)
|
|
161.6
|
|
||
Change in Other Noncurrent Liabilities
|
(16.3
|
)
|
|
141.9
|
|
||
Change in Certain Components of Working Capital
|
(645.6
|
)
|
|
(133.3
|
)
|
||
Net Cash Flows from Operating Activities
|
$
|
3,349.9
|
|
|
$
|
3,932.6
|
|
(a)
|
Non-Cash Adjustments to Net Income includes Depreciation and Amortization, Deferred Income Taxes, AFUDC and Amortization of Nuclear Fuel.
|
•
|
A $512 million decrease in cash from Change in Certain Components of Working Capital. The decrease is primarily due to increase in purchases of fuel, material and supplies, decreased accrued taxes, higher employee-related payments and refund related to Tax Reform, partially offset by receivables due to the changes in timing.
|
•
|
A $171 million decrease in cash from Change in Other Noncurrent Assets primarily due to a change in regulatory assets as a result of AEP subsidiaries with rider recovery mechanisms. See Note 4 - Rate Matters for additional information.
|
•
|
A $158 million decrease in cash from Change in Other Noncurrent Liabilities primarily due to decreased Accumulated Provisions for Rate Refunds as a result of Tax Reform
|
•
|
A $117 million decrease in cash from Deferred Fuel Over/Under Recovery, Net primarily due to fluctuations APCo and WPCo as a result of the 2018 West Virginia Tax Reform Order, the full recovery of Ohio Phase in recovery rider and the fluctuations of fuel and purchase power cost at PSO.
|
•
|
A $310 million increase in cash from Income from Continuing Operations, after non-cash adjustments. See Results of Operations for further detail.
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Construction Expenditures
|
$
|
(4,336.0
|
)
|
|
$
|
(4,688.4
|
)
|
Acquisitions of Nuclear Fuel
|
(91.9
|
)
|
|
(26.1
|
)
|
||
Acquisition of Sempra Renewables LLC and Santa Rita East, net of cash and restricted cash acquired
|
(921.3
|
)
|
|
—
|
|
||
Other
|
(8.4
|
)
|
|
25.8
|
|
||
Net Cash Flows Used for Investing Activities
|
$
|
(5,357.6
|
)
|
|
$
|
(4,688.7
|
)
|
•
|
A $921 million increase due to the acquisition of Sempra Renewables LLC and Santa Rita East. The $921 million represents a cash payment of $939 million, net of cash and restricted cash acquired of $18 million. See Note 6 - Acquisitions and Impairments for additional information.
|
•
|
A $352 million decrease due to decreased construction expenditures, primarily driven by decreases at AEP Transmission Holdco of $210 million and Transmission and Distribution Utilities of $109 million.
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Issuance of Common Stock
|
$
|
44.7
|
|
|
$
|
62.5
|
|
Issuance/Retirement of Debt, Net
|
3,063.9
|
|
|
2,206.2
|
|
||
Dividends Paid on Common Stock
|
(1,002.0
|
)
|
|
(922.5
|
)
|
||
Other
|
(53.2
|
)
|
|
(65.2
|
)
|
||
Net Cash Flows from Financing Activities
|
$
|
2,053.4
|
|
|
$
|
1,281.0
|
|
•
|
A $936 million increase in cash due to decreased retirements of long-term debt. See Note 13 - Financing Activities for additional information.
|
•
|
An $80 million decrease in issuances of long-term debt. See Note 13 - Financing Activities for additional information.
|
•
|
An $80 million decrease in cash due to the increased common stock dividends payments primarily due to increase dividends per share from 2018 to 2019.
|
(a)
|
Reflects fair value on primarily long-term structured contracts which are typically with customers that seek fixed pricing to limit their risk against fluctuating energy prices. The contract prices are valued against market curves associated with the delivery location and delivery term. A significant portion of the total volumetric position has been economically hedged.
|
(b)
|
Market fluctuations are attributable to various factors such as supply/demand, weather, etc.
|
(c)
|
Relates to the net gains (losses) of those contracts that are not reflected on the statements of income. These net gains (losses) are recorded as regulatory liabilities/assets or accounts payable.
|
Counterparty Credit Quality
|
|
Exposure
Before
Credit
Collateral
|
|
Credit
Collateral
|
|
Net
Exposure
|
|
Number of
Counterparties >10% of Net Exposure |
|
Net Exposure
of
Counterparties
>10%
|
|||||||||
|
|
(in millions, except number of counterparties)
|
|||||||||||||||||
Investment Grade
|
|
$
|
529.6
|
|
|
$
|
0.3
|
|
|
$
|
529.3
|
|
|
2
|
|
|
$
|
218.3
|
|
Split Rating
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
1
|
|
|
0.8
|
|
||||
No External Ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Internal Investment Grade
|
|
138.2
|
|
|
—
|
|
|
138.2
|
|
|
3
|
|
|
84.2
|
|
||||
Internal Noninvestment Grade
|
|
56.2
|
|
|
10.5
|
|
|
45.7
|
|
|
2
|
|
|
30.1
|
|
||||
Total as of September 30, 2019
|
|
$
|
724.8
|
|
|
$
|
10.8
|
|
|
$
|
714.0
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||||||||||
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
End
|
|
High
|
|
Average
|
|
Low
|
|
End
|
|
High
|
|
Average
|
|
Low
|
||||||||||||||||
(in millions)
|
|
(in millions)
|
||||||||||||||||||||||||||||
$
|
0.3
|
|
|
$
|
1.2
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
1.1
|
|
|
$
|
1.8
|
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
Nine Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||||||||||||
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
End
|
|
High
|
|
Average
|
|
Low
|
|
End
|
|
High
|
|
Average
|
|
Low
|
||||||||||||||||
(in millions)
|
|
(in millions)
|
||||||||||||||||||||||||||||
$
|
0.2
|
|
|
$
|
8.5
|
|
|
$
|
1.3
|
|
|
$
|
0.2
|
|
|
$
|
4.0
|
|
|
$
|
16.5
|
|
|
$
|
2.7
|
|
|
$
|
0.4
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
||||||||
Vertically Integrated Utilities
|
|
$
|
2,598.9
|
|
|
$
|
2,610.2
|
|
|
$
|
7,087.6
|
|
|
$
|
7,332.4
|
|
Transmission and Distribution Utilities
|
|
1,147.3
|
|
|
1,180.9
|
|
|
3,328.7
|
|
|
3,450.0
|
|
||||
Generation & Marketing
|
|
501.2
|
|
|
486.5
|
|
|
1,323.8
|
|
|
1,399.3
|
|
||||
Other Revenues
|
|
67.6
|
|
|
55.5
|
|
|
205.3
|
|
|
212.9
|
|
||||
TOTAL REVENUES
|
|
4,315.0
|
|
|
4,333.1
|
|
|
11,945.4
|
|
|
12,394.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel and Other Consumables Used for Electric Generation
|
|
631.2
|
|
|
840.4
|
|
|
1,662.5
|
|
|
1,909.1
|
|
||||
Purchased Electricity for Resale
|
|
783.9
|
|
|
784.7
|
|
|
2,306.4
|
|
|
2,551.7
|
|
||||
Other Operation
|
|
708.3
|
|
|
826.0
|
|
|
1,981.7
|
|
|
2,332.7
|
|
||||
Maintenance
|
|
267.7
|
|
|
316.6
|
|
|
890.9
|
|
|
911.0
|
|
||||
Depreciation and Amortization
|
|
645.2
|
|
|
602.6
|
|
|
1,873.6
|
|
|
1,695.5
|
|
||||
Taxes Other Than Income Taxes
|
|
320.5
|
|
|
294.2
|
|
|
932.7
|
|
|
863.0
|
|
||||
TOTAL EXPENSES
|
|
3,356.8
|
|
|
3,664.5
|
|
|
9,647.8
|
|
|
10,263.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
958.2
|
|
|
668.6
|
|
|
2,297.6
|
|
|
2,131.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Income
|
|
3.2
|
|
|
6.3
|
|
|
18.4
|
|
|
18.5
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
43.0
|
|
|
30.9
|
|
|
122.3
|
|
|
92.4
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
30.0
|
|
|
31.9
|
|
|
90.0
|
|
|
95.3
|
|
||||
Interest Expense
|
|
(275.1
|
)
|
|
(256.8
|
)
|
|
(781.6
|
)
|
|
(733.1
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY EARNINGS
|
|
759.3
|
|
|
480.9
|
|
|
1,746.7
|
|
|
1,604.7
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense (Benefit)
|
|
40.6
|
|
|
(80.7
|
)
|
|
30.7
|
|
|
93.5
|
|
||||
Equity Earnings of Unconsolidated Subsidiaries
|
|
15.2
|
|
|
18.1
|
|
|
51.1
|
|
|
55.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
733.9
|
|
|
579.7
|
|
|
1,767.1
|
|
|
1,566.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss) Attributable to Noncontrolling Interests
|
|
0.4
|
|
|
2.1
|
|
|
(0.5
|
)
|
|
6.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
733.5
|
|
|
$
|
577.6
|
|
|
$
|
1,767.6
|
|
|
$
|
1,560.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
|
493,839,034
|
|
|
492,984,741
|
|
|
493,579,430
|
|
|
492,649,456
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
1.49
|
|
|
$
|
1.17
|
|
|
$
|
3.58
|
|
|
$
|
3.17
|
|
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
|
495,461,509
|
|
|
493,940,543
|
|
|
495,105,986
|
|
|
493,526,937
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
1.48
|
|
|
$
|
1.17
|
|
|
$
|
3.57
|
|
|
$
|
3.16
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
733.9
|
|
|
$
|
579.7
|
|
|
$
|
1,767.1
|
|
|
$
|
1,566.5
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash Flow Hedges, Net of Tax of $11.8 and $2.7 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(16.8) and $3.9 for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
44.2
|
|
|
10.2
|
|
|
(63.3
|
)
|
|
14.7
|
|
||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $(0.4) and $(0.4) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(1.1) and $(1.1) for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|
(4.2
|
)
|
|
(4.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
|
42.8
|
|
|
8.8
|
|
|
(67.5
|
)
|
|
10.7
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
|
776.7
|
|
|
588.5
|
|
|
1,699.6
|
|
|
1,577.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total Other Comprehensive Income (Loss) Attributable To Noncontrolling Interests
|
|
0.4
|
|
|
2.1
|
|
|
(0.5
|
)
|
|
6.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME ATTIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
776.3
|
|
|
$
|
586.4
|
|
|
$
|
1,700.1
|
|
|
$
|
1,571.1
|
|
|
AEP Common Shareholders
|
|
|
|
|
|||||||||||||||||||||
|
Common Stock
|
|
|
|
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
|
|
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
Paid-in
Capital |
|
Retained
Earnings |
|
|
Noncontrolling
Interests |
|
Total
|
||||||||||||||
TOTAL EQUITY – DECEMBER 31, 2017
|
512.2
|
|
|
$
|
3,329.4
|
|
|
$
|
6,398.7
|
|
|
$
|
8,626.7
|
|
|
$
|
(67.8
|
)
|
|
$
|
26.6
|
|
|
$
|
18,313.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Issuance of Common Stock
|
0.5
|
|
|
3.3
|
|
|
28.9
|
|
|
|
|
|
|
|
|
|
32.2
|
|
||||||||
Common Stock Dividends
|
|
|
|
|
|
|
(305.5
|
)
|
(b)
|
|
|
(0.6
|
)
|
|
(306.1
|
)
|
||||||||||
Other Changes in Equity
|
|
|
|
|
16.9
|
|
|
|
|
|
|
|
|
16.9
|
|
|||||||||||
ASU 2018-02 Adoption
|
|
|
|
|
|
|
14.0
|
|
|
(17.0
|
)
|
|
|
|
(3.0
|
)
|
||||||||||
ASU 2016-01 Adoption
|
|
|
|
|
|
|
11.9
|
|
|
(11.9
|
)
|
|
|
|
—
|
|
||||||||||
Net Income
|
|
|
|
|
|
|
454.4
|
|
|
|
|
2.3
|
|
|
456.7
|
|
||||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
1.3
|
|
|
|
|
1.3
|
|
|||||||
TOTAL EQUITY – MARCH 31, 2018
|
512.7
|
|
|
3,332.7
|
|
|
6,444.5
|
|
|
8,801.5
|
|
|
(95.4
|
)
|
|
28.3
|
|
|
18,511.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Issuance of Common Stock
|
0.4
|
|
|
2.7
|
|
|
16.0
|
|
|
|
|
|
|
|
|
|
|
|
18.7
|
|
||||||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
|
(306.8
|
)
|
(b)
|
|
|
|
(1.3
|
)
|
|
(308.1
|
)
|
||||||
Other Changes in Equity
|
|
|
|
|
|
|
(1.9
|
)
|
|
|
|
|
|
|
0.4
|
|
|
(1.5
|
)
|
|||||||
Net Income
|
|
|
|
|
|
|
528.4
|
|
|
|
|
|
1.7
|
|
|
530.1
|
|
|||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
0.6
|
|
|
|
|
|
0.6
|
|
||||||
TOTAL EQUITY – JUNE 30, 2018
|
513.1
|
|
|
3,335.4
|
|
|
6,458.6
|
|
|
9,023.1
|
|
|
(94.8
|
)
|
|
29.1
|
|
|
18,751.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Issuance of Common Stock
|
0.2
|
|
|
1.1
|
|
|
10.5
|
|
|
|
|
|
|
|
|
11.6
|
|
|||||||||
Common Stock Dividends
|
|
|
|
|
|
|
(307.0
|
)
|
(b)
|
|
|
(1.3
|
)
|
|
(308.3
|
)
|
||||||||||
Other Changes in Equity
|
|
|
|
|
3.5
|
|
|
|
|
|
|
0.1
|
|
|
3.6
|
|
||||||||||
Net Income
|
|
|
|
|
|
|
577.6
|
|
|
|
|
2.1
|
|
|
579.7
|
|
||||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
8.8
|
|
|
|
|
8.8
|
|
|||||||||||
TOTAL EQUITY – SEPTEMBER 30, 2018
|
513.3
|
|
|
$
|
3,336.5
|
|
|
$
|
6,472.6
|
|
|
$
|
9,293.7
|
|
|
$
|
(86.0
|
)
|
|
$
|
30.0
|
|
|
$
|
19,046.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL EQUITY – DECEMBER 31, 2018
|
513.5
|
|
|
$
|
3,337.4
|
|
|
$
|
6,486.1
|
|
|
$
|
9,325.3
|
|
|
$
|
(120.4
|
)
|
|
$
|
31.0
|
|
|
$
|
19,059.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Issuance of Common Stock
|
0.1
|
|
|
1.2
|
|
|
13.3
|
|
|
|
|
|
|
|
|
14.5
|
|
|||||||||
Common Stock Dividends
|
|
|
|
|
|
|
(332.5
|
)
|
(c)
|
|
|
(1.1
|
)
|
|
(333.6
|
)
|
||||||||||
Other Changes in Equity
|
|
|
|
|
(56.6
|
)
|
(a)
|
|
|
|
|
1.0
|
|
|
(55.6
|
)
|
||||||||||
Net Income
|
|
|
|
|
|
|
572.8
|
|
|
|
|
1.3
|
|
|
574.1
|
|
||||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
(30.3
|
)
|
|
|
|
(30.3
|
)
|
|||||||||||
TOTAL EQUITY – MARCH 31, 2019
|
513.6
|
|
|
3,338.6
|
|
|
6,442.8
|
|
|
9,565.6
|
|
|
(150.7
|
)
|
|
32.2
|
|
|
19,228.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Issuance of Common Stock
|
0.4
|
|
|
2.2
|
|
|
15.6
|
|
|
|
|
|
|
|
|
17.8
|
|
|||||||||
Common Stock Dividends
|
|
|
|
|
|
|
(332.7
|
)
|
(c)
|
|
|
(1.8
|
)
|
|
(334.5
|
)
|
||||||||||
Other Changes in Equity
|
|
|
|
|
(3.1
|
)
|
|
|
|
|
|
0.6
|
|
|
(2.5
|
)
|
||||||||||
Acquisition of Sempra Renewables LLC
|
|
|
|
|
|
|
|
|
|
|
134.8
|
|
|
134.8
|
|
|||||||||||
Net Income (Loss)
|
|
|
|
|
|
|
461.3
|
|
|
|
|
(2.2
|
)
|
|
459.1
|
|
||||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
(80.0
|
)
|
|
|
|
(80.0
|
)
|
|||||||||||
TOTAL EQUITY – JUNE 30, 2019
|
514.0
|
|
|
3,340.8
|
|
|
6,455.3
|
|
|
9,694.2
|
|
|
(230.7
|
)
|
|
163.6
|
|
|
19,423.2
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Issuance of Common Stock
|
0.1
|
|
|
1.1
|
|
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
12.4
|
|
||||||
Common Stock Dividends
|
|
|
|
|
|
|
|
|
|
(332.4
|
)
|
(c)
|
|
|
|
(1.5
|
)
|
|
(333.9
|
)
|
||||||
Other Changes in Equity
|
|
|
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
0.5
|
|
|||||||
Acquisition of Santa Rita East
|
|
|
|
|
|
|
|
|
|
|
118.8
|
|
|
118.8
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
733.5
|
|
|
|
|
|
0.4
|
|
|
733.9
|
|
|||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
42.8
|
|
|
|
|
|
42.8
|
|
||||||
TOTAL EQUITY – SEPTEMBER 30, 2019
|
514.1
|
|
|
$
|
3,341.9
|
|
|
$
|
6,467.1
|
|
|
$
|
10,095.3
|
|
|
$
|
(187.9
|
)
|
|
$
|
281.3
|
|
|
$
|
19,997.7
|
|
(a)
|
Includes $(62) million related to a forward equity purchase contract associated with the issuance of Equity Units. See “Equity Units” section of Note 13 for additional information.
|
(b)
|
Common Stock dividends declared per AEP common share were $0.62.
|
(c)
|
Common Stock dividends declared per AEP common share were $0.67.
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
|
|
||
Cash and Cash Equivalents
|
|
$
|
348.8
|
|
|
$
|
234.1
|
|
Restricted Cash
(September 30, 2019 and December 31, 2018 Amounts Include $141 and $210, Respectively, Related to Transition Funding, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding and Santa Rita East) |
|
141.0
|
|
|
210.0
|
|
||
Other Temporary Investments
(September 30, 2019 and December 31, 2018 Amounts Include $193.4 and $152.7, Respectively, Related to EIS and Transource Energy) |
|
198.4
|
|
|
159.1
|
|
||
Accounts Receivable:
|
|
|
|
|
|
|
||
Customers
|
|
609.0
|
|
|
699.0
|
|
||
Accrued Unbilled Revenues
|
|
268.8
|
|
|
209.3
|
|
||
Pledged Accounts Receivable – AEP Credit
|
|
955.6
|
|
|
999.8
|
|
||
Miscellaneous
|
|
36.6
|
|
|
55.2
|
|
||
Allowance for Uncollectible Accounts
|
|
(44.9
|
)
|
|
(36.8
|
)
|
||
Total Accounts Receivable
|
|
1,825.1
|
|
|
1,926.5
|
|
||
Fuel
|
|
437.8
|
|
|
341.5
|
|
||
Materials and Supplies
|
|
613.5
|
|
|
579.6
|
|
||
Risk Management Assets
|
|
186.7
|
|
|
162.8
|
|
||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
98.5
|
|
|
150.1
|
|
||
Margin Deposits
|
|
54.2
|
|
|
141.4
|
|
||
Prepayments and Other Current Assets
|
|
262.4
|
|
|
208.8
|
|
||
TOTAL CURRENT ASSETS
|
|
4,166.4
|
|
|
4,113.9
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
||
Electric:
|
|
|
|
|
|
|
||
Generation
|
|
22,624.4
|
|
|
21,699.9
|
|
||
Transmission
|
|
23,082.8
|
|
|
21,531.0
|
|
||
Distribution
|
|
21,991.0
|
|
|
21,195.4
|
|
||
Other Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel)
|
|
4,510.2
|
|
|
4,265.0
|
|
||
Construction Work in Progress
|
|
5,244.5
|
|
|
4,393.9
|
|
||
Total Property, Plant and Equipment
|
|
77,452.9
|
|
|
73,085.2
|
|
||
Accumulated Depreciation and Amortization
|
|
18,760.2
|
|
|
17,986.1
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
58,692.7
|
|
|
55,099.1
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
||
Regulatory Assets
|
|
3,131.4
|
|
|
3,310.4
|
|
||
Securitized Assets
|
|
938.7
|
|
|
920.6
|
|
||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
2,835.2
|
|
|
2,474.9
|
|
||
Goodwill
|
|
52.5
|
|
|
52.5
|
|
||
Long-term Risk Management Assets
|
|
299.0
|
|
|
254.0
|
|
||
Operating Lease Assets
|
|
990.0
|
|
|
—
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
2,794.8
|
|
|
2,577.4
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
11,041.6
|
|
|
9,589.8
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
73,900.7
|
|
|
$
|
68,802.8
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
|
|
|
|
|
2019
|
|
2018
|
||||
CURRENT LIABILITIES
|
|
|
|
|
|||||||||
Accounts Payable
|
|
|
|
|
|
|
$
|
1,766.8
|
|
|
$
|
1,874.3
|
|
Short-term Debt:
|
|
|
|
|
|
|
|
|
|
||||
Securitized Debt for Receivables – AEP Credit
|
|
|
|
|
|
|
750.0
|
|
|
750.0
|
|
||
Other Short-term Debt
|
|
|
|
|
|
|
1,760.0
|
|
|
1,160.0
|
|
||
Total Short-term Debt
|
|
|
|
|
|
|
2,510.0
|
|
|
1,910.0
|
|
||
Long-term Debt Due Within One Year
(September 30, 2019 and December 31, 2018 Amounts Include $544.7 and $406.5, Respectively, Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy, Sabine and Restoration Funding) |
|
|
1,327.7
|
|
|
1,698.5
|
|
||||||
Risk Management Liabilities
|
|
|
|
|
|
|
75.3
|
|
|
55.0
|
|
||
Customer Deposits
|
|
|
|
|
|
|
381.4
|
|
|
412.2
|
|
||
Accrued Taxes
|
|
|
|
|
|
|
883.4
|
|
|
1,218.0
|
|
||
Accrued Interest
|
|
|
|
|
|
|
304.8
|
|
|
231.7
|
|
||
Obligations Under Operating Leases
|
|
|
|
|
|
|
228.8
|
|
|
—
|
|
||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
|
|
|
100.6
|
|
|
58.6
|
|
||||
Other Current Liabilities
|
|
|
|
|
|
|
1,032.4
|
|
|
1,190.5
|
|
||
TOTAL CURRENT LIABILITIES
|
|
|
|
|
|
|
8,611.2
|
|
|
8,648.8
|
|
||
|
|
|
|
|
|
|
|
||||||
NONCURRENT LIABILITIES
|
|
|
|
|
|||||||||
Long-term Debt
(September 30, 2019 and December 31, 2018 Amounts Include $918.4 and $1,109.2, Respectively, Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy, Sabine and Restoration Funding) |
|
|
24,553.5
|
|
|
21,648.2
|
|
||||||
Long-term Risk Management Liabilities
|
|
|
|
|
|
|
298.6
|
|
|
263.4
|
|
||
Deferred Income Taxes
|
|
|
|
|
|
|
7,427.8
|
|
|
7,086.5
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
|
8,552.8
|
|
|
8,540.3
|
|
||||||
Asset Retirement Obligations
|
|
|
|
|
|
|
2,353.5
|
|
|
2,287.7
|
|
||
Employee Benefits and Pension Obligations
|
|
|
|
|
|
|
376.6
|
|
|
377.1
|
|
||
Obligations Under Operating Leases
|
|
|
|
|
|
|
801.1
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
|
790.0
|
|
|
782.6
|
|
||||||
TOTAL NONCURRENT LIABILITIES
|
|
|
|
|
|
|
45,153.9
|
|
|
40,985.8
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
|
|
|
|
|
53,765.1
|
|
|
49,634.6
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Rate Matters (Note 4)
|
|
|
|
|
|
|
|
|
|
||||
Commitments and Contingencies (Note 5)
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
MEZZANINE EQUITY
|
|
|
|
|
|||||||||
Redeemable Noncontrolling Interest
|
|
|
|
|
|
|
67.3
|
|
|
69.4
|
|
||
Contingently Redeemable Performance Share Awards
|
|
|
|
|
|
|
70.6
|
|
|
39.4
|
|
||
TOTAL MEZZANINE EQUITY
|
|
|
|
|
|
|
137.9
|
|
|
108.8
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
EQUITY
|
|
|
|
|
|||||||||
Common Stock – Par Value – $6.50 Per Share:
|
|
|
|
|
|
|
|
|
|
||||
|
|
2019
|
|
2018
|
|
|
|
|
|
||||
Shares Authorized
|
|
600,000,000
|
|
600,000,000
|
|
|
|
|
|
||||
Shares Issued
|
|
514,140,235
|
|
513,450,036
|
|
|
|
|
|
||||
(20,204,160 Shares were Held in Treasury as of September 30, 2019 and December 31, 2018, Respectively)
|
|
|
3,341.9
|
|
|
3,337.4
|
|
||||||
Paid-in Capital
|
|
|
|
|
|
|
6,467.1
|
|
|
6,486.1
|
|
||
Retained Earnings
|
|
|
|
|
|
|
10,095.3
|
|
|
9,325.3
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
|
(187.9
|
)
|
|
(120.4
|
)
|
||||||
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY
|
|
|
19,716.4
|
|
|
19,028.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling Interests
|
|
|
|
|
|
|
281.3
|
|
|
31.0
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
TOTAL EQUITY
|
|
|
|
|
|
|
19,997.7
|
|
|
19,059.4
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL EQUITY
|
|
$
|
73,900.7
|
|
|
$
|
68,802.8
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
1,767.1
|
|
|
$
|
1,566.5
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
Depreciation and Amortization
|
|
1,873.6
|
|
|
1,695.5
|
|
||
Deferred Income Taxes
|
|
15.9
|
|
|
43.0
|
|
||
Allowance for Equity Funds Used During Construction
|
|
(122.3
|
)
|
|
(92.4
|
)
|
||
Mark-to-Market of Risk Management Contracts
|
|
(41.6
|
)
|
|
(95.4
|
)
|
||
Amortization of Nuclear Fuel
|
|
71.6
|
|
|
82.6
|
|
||
Property Taxes
|
|
341.7
|
|
|
304.8
|
|
||
Deferred Fuel Over/Under-Recovery, Net
|
|
93.7
|
|
|
210.6
|
|
||
Recovery of Ohio Capacity Costs
|
|
34.1
|
|
|
52.7
|
|
||
Refund of Global Settlement
|
|
(12.4
|
)
|
|
(5.5
|
)
|
||
Change in Other Noncurrent Assets
|
|
(9.6
|
)
|
|
161.6
|
|
||
Change in Other Noncurrent Liabilities
|
|
(16.3
|
)
|
|
141.9
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
||||
Accounts Receivable, Net
|
|
125.0
|
|
|
(52.3
|
)
|
||
Fuel, Materials and Supplies
|
|
(116.6
|
)
|
|
98.7
|
|
||
Accounts Payable
|
|
(32.4
|
)
|
|
(45.0
|
)
|
||
Accrued Taxes, Net
|
|
(359.9
|
)
|
|
(247.5
|
)
|
||
Other Current Assets
|
|
60.2
|
|
|
11.7
|
|
||
Other Current Liabilities
|
|
(321.9
|
)
|
|
101.1
|
|
||
Net Cash Flows from Operating Activities
|
|
3,349.9
|
|
|
3,932.6
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
||||
Construction Expenditures
|
|
(4,336.0
|
)
|
|
(4,688.4
|
)
|
||
Purchases of Investment Securities
|
|
(951.5
|
)
|
|
(1,591.2
|
)
|
||
Sales of Investment Securities
|
|
874.2
|
|
|
1,550.9
|
|
||
Acquisitions of Nuclear Fuel
|
|
(91.9
|
)
|
|
(26.1
|
)
|
||
Acquisition of Sempra Renewables LLC and Santa Rita East, net of cash and restricted cash acquired
|
|
(921.3
|
)
|
|
—
|
|
||
Other Investing Activities
|
|
68.9
|
|
|
66.1
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(5,357.6
|
)
|
|
(4,688.7
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
||||
Issuance of Common Stock
|
|
44.7
|
|
|
62.5
|
|
||
Issuance of Long-term Debt
|
|
3,492.4
|
|
|
3,572.0
|
|
||
Commercial Paper and Credit Facility Borrowings
|
|
—
|
|
|
205.6
|
|
||
Change in Short-term Debt, Net
|
|
600.0
|
|
|
604.0
|
|
||
Retirement of Long-term Debt
|
|
(1,023.5
|
)
|
|
(1,959.5
|
)
|
||
Make Whole Premium on Extinguishment of Long-term Debt
|
|
(5.0
|
)
|
|
(10.3
|
)
|
||
Commercial Paper and Credit Facility Repayments
|
|
—
|
|
|
(205.6
|
)
|
||
Principal Payments for Finance Lease Obligations
|
|
(44.5
|
)
|
|
(49.4
|
)
|
||
Dividends Paid on Common Stock
|
|
(1,002.0
|
)
|
|
(922.5
|
)
|
||
Other Financing Activities
|
|
(8.7
|
)
|
|
(15.8
|
)
|
||
Net Cash Flows from Financing Activities
|
|
2,053.4
|
|
|
1,281.0
|
|
||
|
|
|
|
|
||||
Net Increase in Cash, Cash Equivalents and Restricted Cash
|
|
45.7
|
|
|
524.9
|
|
||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
444.1
|
|
|
412.6
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$
|
489.8
|
|
|
$
|
937.5
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
||||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
689.7
|
|
|
$
|
631.3
|
|
Net Cash Paid (Received) for Income Taxes
|
|
22.8
|
|
|
(27.9
|
)
|
||
Noncash Acquisitions Under Finance Leases
|
|
66.7
|
|
|
43.5
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
1,018.9
|
|
|
882.3
|
|
||
Acquisition of Nuclear Fuel Included in Current Liabilities as of September 30,
|
|
—
|
|
|
12.1
|
|
||
Noncash Contribution of Assets by Noncontrolling Interest
|
|
—
|
|
|
84.0
|
|
||
Expected Reimbursement for Spent Nuclear Fuel Dry Cask Storage
|
|
—
|
|
|
2.1
|
|
||
Noncontrolling Interest assumed with Sempra Renewable LLC and Santa Rita East Acquisition
|
|
253.4
|
|
|
—
|
|
||
Liabilities assumed with Sempra Renewable LLC and Santa Rita East Acquisition
|
|
32.4
|
|
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
||
Residential
|
4,148
|
|
|
3,893
|
|
|
9,580
|
|
|
9,679
|
|
Commercial
|
3,152
|
|
|
2,987
|
|
|
7,997
|
|
|
7,916
|
|
Industrial
|
2,168
|
|
|
2,216
|
|
|
6,556
|
|
|
6,705
|
|
Miscellaneous
|
197
|
|
|
182
|
|
|
512
|
|
|
490
|
|
Total Retail (a)
|
9,665
|
|
|
9,278
|
|
|
24,645
|
|
|
24,790
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
180
|
|
|
234
|
|
Normal – Heating (b)
|
—
|
|
|
—
|
|
|
190
|
|
|
194
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
1,587
|
|
|
1,424
|
|
|
2,679
|
|
|
2,612
|
|
Normal – Cooling (b)
|
1,368
|
|
|
1,367
|
|
|
2,425
|
|
|
2,413
|
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
||||
Third Quarter of 2018
|
|
$
|
57.8
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
||
Retail Margins
|
|
12.6
|
|
|
Margins from Off-system Sales
|
|
16.7
|
|
|
Transmission Revenues
|
|
23.9
|
|
|
Other Revenues
|
|
4.7
|
|
|
Total Change in Gross Margin
|
|
57.9
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
6.7
|
|
|
Depreciation and Amortization
|
|
(36.9
|
)
|
|
Taxes Other Than Income Taxes
|
|
(3.5
|
)
|
|
Interest Income
|
|
(0.1
|
)
|
|
Allowance for Equity Funds Used During Construction
|
|
(0.7
|
)
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.3
|
)
|
|
Interest Expense
|
|
1.5
|
|
|
Total Change in Expenses and Other
|
|
(33.3
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(5.4
|
)
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
77.0
|
|
•
|
Retail Margins increased $13 million primarily due to the following:
|
•
|
An $8 million increase in weather-related usage primarily due to an 11% increase in cooling degree days.
|
•
|
A $4 million increase in weather-normalized margins primarily in the residential class.
|
•
|
Margins from Off-system Sales increased $17 million due to higher affiliated PPA revenues. This increase was partially offset below in Other Operation and Maintenance expenses and in Depreciation and Amortization expenses.
|
•
|
Transmission Revenues increased $24 million primarily due to the recovery of increased transmission investment in ERCOT.
|
•
|
Other Revenues increased $5 million primarily due to securitization revenue related to Transition Funding. This decrease was offset below in Depreciation and Amortization expenses and in Interest Expense.
|
•
|
Other Operation and Maintenance expenses decreased $7 million primarily due to the following:
|
•
|
A $4 million decrease in expenses associated with Oklaunion Power Station. This decrease was partially offset in Margins from Off-system Sales above and in Depreciation and Amortization expenses below.
|
•
|
A $3 million decrease in ERCOT transmission expenses. This decrease was partially offset in Retail Margins above.
|
•
|
Depreciation and Amortization expenses increased $37 million primarily due to the following:
|
•
|
A $16 million increase in depreciation expense due to a change in the useful life of the Oklaunion Power Station. This increase was partially offset in Margins from Off-system Sales above and in Other Operation and Maintenance expenses above.
|
•
|
An $11 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets primarily related to advanced metering systems.
|
•
|
A $7 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below.
|
•
|
Taxes Other Than Income Taxes increased $4 million primarily due to increased property taxes as a result of additional investments in transmission and distribution assets and higher tax rates.
|
•
|
Interest Expense decreased $2 million primarily due to the following:
|
•
|
A $5 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019.
|
•
|
A $3 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset above in Other Revenues and Depreciation and Amortization expenses.
|
•
|
A $2 million increase due to higher long-term debt balances.
|
•
|
Income Tax Expense (Benefit) increased $5 million primarily due to an increase in pretax book income.
|
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
||||
Nine Months Ended September 30, 2018
|
|
$
|
151.1
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
||
Retail Margins
|
|
—
|
|
|
Margins from Off-system Sales
|
|
59.3
|
|
|
Transmission Revenues
|
|
62.3
|
|
|
Other Revenues
|
|
1.9
|
|
|
Total Change in Gross Margin
|
|
123.5
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
(49.9
|
)
|
|
Depreciation and Amortization
|
|
(99.9
|
)
|
|
Taxes Other Than Income Taxes
|
|
(8.0
|
)
|
|
Interest Income
|
|
1.5
|
|
|
Allowance for Equity Funds Used During Construction
|
|
(6.9
|
)
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.8
|
)
|
|
Interest Expense
|
|
16.2
|
|
|
Total Change in Expenses and Other
|
|
(147.8
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
65.2
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|
$
|
192.0
|
|
•
|
Retail Margins were unchanged primarily due to the following:
|
•
|
A $7 million decrease in revenues associated with the Transmission Cost Recovery Factor revenue rider. This decrease was partially offset in Other Operation and Maintenance expenses below.
|
•
|
A $5 million decrease in weather-related usage primarily due to a 23% decrease in heating degree days, partially offset by a 3% increase in cooling degree days.
|
•
|
A $12 million increase in weather-normalized margins primarily in the residential and commercial classes.
|
•
|
Margins from Off-system Sales increased $59 million due to higher affiliated PPA revenues. This increase was partially offset below in Other Operation and Maintenance expenses and in Depreciation and Amortization expenses.
|
•
|
Transmission Revenues increased $62 million primarily due to recovery of increased transmission investment in ERCOT.
|
•
|
Other Operation and Maintenance expenses increased $50 million primarily due to the following:
|
•
|
A $64 million increase in expense due to the partial amortization of the Texas Storm Cost Securitization regulatory asset as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. This increase was offset in Income Tax Expense (Benefit) below.
|
•
|
A $7 million decrease in distribution expenses.
|
•
|
A $7 million decrease in ERCOT transmission expenses. This decrease was partially offset in Retail Margins above.
|
•
|
A $5 million decrease in expenses associated with Oklaunion Power Station. This decrease was partially offset in Margins from Off-system Sales above and in Depreciation and Amortization expenses below.
|
•
|
Depreciation and Amortization expenses increased $100 million primarily due to the following:
|
•
|
A $49 million increase in depreciation expense due to a change in the useful life of the Oklaunion Power Station. This increase was offset above in Margins from Off-system Sales and in Other Operation and Maintenance expenses.
|
•
|
A $34 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets primarily related to advanced metering systems.
|
•
|
A $9 million increase in securitization amortizations primarily related to Transition Funding. This increase was offset in Other Revenues above and in Interest Expense below.
|
•
|
A $6 million increase in ARO associated with Oklaunion Power Station.
|
•
|
Taxes Other Than Income Taxes increased $8 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates.
|
•
|
Allowance for Equity Funds Used During Construction decreased $7 million primarily due to a decrease in the Equity component as a result of higher short-term debt balances, partially offset by increased transmission projects.
|
•
|
Interest Expense decreased $16 million primarily due to:
|
•
|
A $21 million decrease due to the deferral of previously recorded interest expense approved for recovery as a result of the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019.
|
•
|
An $8 million decrease in expense related to Transition Funding Securitization assets. This decrease was offset above in Other Revenues and Depreciation and Amortization expenses.
|
•
|
An $11 million increase due to higher long-term debt balances.
|
•
|
Income Tax Expense (Benefit) decreased $65 million primarily due to the amortization of Excess ADIT not subject to normalization requirements as approved in the Texas Storm Cost Securitization financing order issued by the PUCT in June 2019. This decrease was partially offset above in Other Operation and Maintenance expenses.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
||||||||
Electric Transmission and Distribution
|
|
$
|
445.4
|
|
|
$
|
404.5
|
|
|
$
|
1,190.3
|
|
|
$
|
1,127.0
|
|
Sales to AEP Affiliates
|
|
42.7
|
|
|
27.5
|
|
|
125.1
|
|
|
63.3
|
|
||||
Other Revenues
|
|
1.2
|
|
|
1.4
|
|
|
2.6
|
|
|
3.0
|
|
||||
TOTAL REVENUES
|
|
489.3
|
|
|
433.4
|
|
|
1,318.0
|
|
|
1,193.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel and Other Consumables Used for Electric Generation
|
|
11.2
|
|
|
13.2
|
|
|
29.1
|
|
|
27.9
|
|
||||
Other Operation
|
|
128.2
|
|
|
133.4
|
|
|
349.2
|
|
|
368.4
|
|
||||
Maintenance
|
|
21.7
|
|
|
23.2
|
|
|
136.9
|
|
|
67.8
|
|
||||
Depreciation and Amortization
|
|
170.2
|
|
|
133.3
|
|
|
464.8
|
|
|
364.9
|
|
||||
Taxes Other Than Income Taxes
|
|
39.8
|
|
|
36.3
|
|
|
110.3
|
|
|
102.3
|
|
||||
TOTAL EXPENSES
|
|
371.1
|
|
|
339.4
|
|
|
1,090.3
|
|
|
931.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
118.2
|
|
|
94.0
|
|
|
227.7
|
|
|
262.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Income
|
|
0.4
|
|
|
0.5
|
|
|
1.5
|
|
|
—
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
5.1
|
|
|
5.8
|
|
|
8.3
|
|
|
15.2
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
2.8
|
|
|
3.1
|
|
|
8.4
|
|
|
9.2
|
|
||||
Interest Expense
|
|
(35.8
|
)
|
|
(37.3
|
)
|
|
(92.7
|
)
|
|
(108.9
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
90.7
|
|
|
66.1
|
|
|
153.2
|
|
|
177.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense (Benefit)
|
|
13.7
|
|
|
8.3
|
|
|
(38.8
|
)
|
|
26.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
77.0
|
|
|
$
|
57.8
|
|
|
$
|
192.0
|
|
|
$
|
151.1
|
|
The common stock of AEP Texas is wholly-owned by Parent.
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
77.0
|
|
|
$
|
57.8
|
|
|
$
|
192.0
|
|
|
$
|
151.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAXES
|
|
|
|
|
|
|
|
|
||||||||
Cash Flow Hedges, Net of Tax of $0.1 and $0.1 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0.2 and $0.2 for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
0.3
|
|
|
0.3
|
|
|
0.8
|
|
|
0.8
|
|
||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0 and $0 for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
|
0.3
|
|
|
0.3
|
|
|
0.9
|
|
|
0.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
77.3
|
|
|
$
|
58.1
|
|
|
$
|
192.9
|
|
|
$
|
152.0
|
|
|
|
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
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
|
|
57.8
|
|
|
|
|
57.8
|
|
||||||
Other Comprehensive Income
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018
|
|
$
|
1,157.9
|
|
|
$
|
1,277.5
|
|
|
$
|
(14.4
|
)
|
|
$
|
2,421.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
|
|
77.0
|
|
|
|
|
77.0
|
|
||||||
Other Comprehensive Income
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019
|
|
$
|
1,457.9
|
|
|
$
|
1,529.7
|
|
|
$
|
(14.2
|
)
|
|
$
|
2,973.4
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
0.1
|
|
|
$
|
3.1
|
|
Restricted Cash for Securitized Transition Funding
|
|
114.3
|
|
|
156.7
|
|
||
Advances to Affiliates
|
|
7.7
|
|
|
8.0
|
|
||
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
148.0
|
|
|
110.9
|
|
||
Affiliated Companies
|
|
17.6
|
|
|
15.0
|
|
||
Accrued Unbilled Revenues
|
|
82.7
|
|
|
70.4
|
|
||
Miscellaneous
|
|
0.2
|
|
|
1.9
|
|
||
Allowance for Uncollectible Accounts
|
|
(1.6
|
)
|
|
(1.3
|
)
|
||
Total Accounts Receivable
|
|
246.9
|
|
|
196.9
|
|
||
Fuel
|
|
7.1
|
|
|
8.8
|
|
||
Materials and Supplies
|
|
54.6
|
|
|
52.8
|
|
||
Accrued Tax Benefits
|
|
111.3
|
|
|
44.9
|
|
||
Prepayments and Other Current Assets
|
|
6.4
|
|
|
5.3
|
|
||
TOTAL CURRENT ASSETS
|
|
548.4
|
|
|
476.5
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
Electric:
|
|
|
|
|
||||
Generation
|
|
351.8
|
|
|
352.1
|
|
||
Transmission
|
|
4,102.8
|
|
|
3,683.6
|
|
||
Distribution
|
|
4,122.2
|
|
|
4,043.2
|
|
||
Other Property, Plant and Equipment
|
|
775.3
|
|
|
727.9
|
|
||
Construction Work in Progress
|
|
978.4
|
|
|
836.2
|
|
||
Total Property, Plant and Equipment
|
|
10,330.5
|
|
|
9,643.0
|
|
||
Accumulated Depreciation and Amortization
|
|
1,742.7
|
|
|
1,651.2
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
8,587.8
|
|
|
7,991.8
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Regulatory Assets
|
|
259.6
|
|
|
430.0
|
|
||
Securitized Assets
(September 30, 2019 and December 31, 2018 Amounts Include $693 and $636.8, Respectively, Related to Transition Funding and Restoration Funding) |
|
698.1
|
|
|
649.1
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
161.9
|
|
|
56.3
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
1,119.6
|
|
|
1,135.4
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
10,255.8
|
|
|
$
|
9,603.7
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Advances from Affiliates
|
|
$
|
74.8
|
|
|
$
|
216.0
|
|
Accounts Payable:
|
|
|
|
|
||||
General
|
|
224.1
|
|
|
276.5
|
|
||
Affiliated Companies
|
|
41.0
|
|
|
30.3
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
(September 30, 2019 and December 31, 2018 Amounts Include $280.8 and $251.1, Respectively, Related to Transition Funding and Restoration Funding) |
|
391.4
|
|
|
501.1
|
|
||
Risk Management Liabilities
|
|
0.3
|
|
|
0.2
|
|
||
Accrued Taxes
|
|
108.5
|
|
|
75.5
|
|
||
Accrued Interest
(September 30, 2019 and December 31, 2018 Amounts Include $6.1 and $11.3, Respectively, Related to Transition Funding and Restoration Funding) |
|
50.6
|
|
|
37.3
|
|
||
Oklaunion Purchase Power Agreement
|
|
28.7
|
|
|
24.3
|
|
||
Obligations Under Operating Leases
|
|
11.7
|
|
|
—
|
|
||
Other Current Liabilities
|
|
85.1
|
|
|
98.3
|
|
||
TOTAL CURRENT LIABILITIES
|
|
1,016.2
|
|
|
1,259.5
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
(September 30, 2019 and December 31, 2018 Amounts Include $530.5 and $540.1, Respectively, Related to Transition Funding and Restoration Funding) |
|
3,755.1
|
|
|
3,380.2
|
|
||
Long-term Risk Management Liabilities
|
|
0.1
|
|
|
—
|
|
||
Deferred Income Taxes
|
|
977.7
|
|
|
913.1
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,325.1
|
|
|
1,344.3
|
|
||
Oklaunion Purchase Power Agreement
|
|
—
|
|
|
22.1
|
|
||
Obligations Under Operating Leases
|
|
71.1
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
137.1
|
|
|
104.0
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
6,266.2
|
|
|
5,763.7
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
7,282.4
|
|
|
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
|
|
1,529.7
|
|
|
1,337.7
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
(14.2
|
)
|
|
(15.1
|
)
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,973.4
|
|
|
2,580.5
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
10,255.8
|
|
|
$
|
9,603.7
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
192.0
|
|
|
$
|
151.1
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
Depreciation and Amortization
|
|
464.8
|
|
|
364.9
|
|
||
Deferred Income Taxes
|
|
(0.6
|
)
|
|
(21.2
|
)
|
||
Allowance for Equity Funds Used During Construction
|
|
(8.3
|
)
|
|
(15.2
|
)
|
||
Mark-to-Market of Risk Management Contracts
|
|
0.2
|
|
|
—
|
|
||
Change in Other Noncurrent Assets
|
|
0.5
|
|
|
(55.7
|
)
|
||
Change in Other Noncurrent Liabilities
|
|
6.5
|
|
|
67.1
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|||
Accounts Receivable, Net
|
|
(50.0
|
)
|
|
(26.5
|
)
|
||
Fuel, Materials and Supplies
|
|
(0.1
|
)
|
|
(2.4
|
)
|
||
Accounts Payable
|
|
17.8
|
|
|
(19.1
|
)
|
||
Accrued Taxes, Net
|
|
(33.4
|
)
|
|
40.0
|
|
||
Other Current Assets
|
|
(0.7
|
)
|
|
(6.3
|
)
|
||
Other Current Liabilities
|
|
(12.9
|
)
|
|
14.1
|
|
||
Net Cash Flows from Operating Activities
|
|
575.8
|
|
|
490.8
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Construction Expenditures
|
|
(954.5
|
)
|
|
(1,096.1
|
)
|
||
Change in Advances to Affiliates, Net
|
|
0.3
|
|
|
103.9
|
|
||
Other Investing Activities
|
|
18.4
|
|
|
31.1
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(935.8
|
)
|
|
(961.1
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Capital Contribution from Parent
|
|
200.0
|
|
|
100.0
|
|
||
Issuance of Long-term Debt – Nonaffiliated
|
|
627.5
|
|
|
494.0
|
|
||
Change in Advances from Affiliates, Net
|
|
(141.2
|
)
|
|
77.8
|
|
||
Retirement of Long-term Debt – Nonaffiliated
|
|
(366.8
|
)
|
|
(231.7
|
)
|
||
Principal Payments for Finance Lease Obligations
|
|
(3.8
|
)
|
|
(3.6
|
)
|
||
Other Financing Activities
|
|
(1.1
|
)
|
|
0.9
|
|
||
Net Cash Flows from Financing Activities
|
|
314.6
|
|
|
437.4
|
|
||
|
|
|
|
|
||||
Net Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Transition Funding
|
|
(45.4
|
)
|
|
(32.9
|
)
|
||
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
|
|
$
|
114.4
|
|
|
$
|
124.3
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
95.1
|
|
|
$
|
92.2
|
|
Net Cash Paid (Received) for Income Taxes
|
|
28.7
|
|
|
(14.2
|
)
|
||
Noncash Acquisitions Under Finance Leases
|
|
6.9
|
|
|
8.9
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
183.6
|
|
|
176.4
|
|
|
|
As of September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
Plant In Service
|
|
$
|
7,409.0
|
|
|
$
|
5,988.7
|
|
Construction Work in Progress
|
|
1,858.4
|
|
|
1,772.9
|
|
||
Accumulated Depreciation and Amortization
|
|
368.8
|
|
|
234.6
|
|
||
Total Transmission Property, Net
|
|
$
|
8,898.6
|
|
|
$
|
7,527.0
|
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
78.1
|
|
|
|
|
||
Changes in Transmission Revenues:
|
|
|
||
Transmission Revenues
|
|
65.3
|
|
|
Total Change in Transmission Revenues
|
|
65.3
|
|
|
|
|
|
||
Changes in Expenses and Other:
|
|
|
||
Other Operation and Maintenance
|
|
(1.9
|
)
|
|
Depreciation and Amortization
|
|
(10.4
|
)
|
|
Taxes Other Than Income Taxes
|
|
(7.7
|
)
|
|
Interest Income
|
|
0.3
|
|
|
Allowance for Equity Funds Used During Construction
|
|
3.0
|
|
|
Interest Expense
|
|
(6.6
|
)
|
|
Total Change in Expenses and Other
|
|
(23.3
|
)
|
|
|
|
|
||
Income Tax Expense
|
|
(12.5
|
)
|
|
|
|
|
||
Third Quarter of 2019
|
|
$
|
107.6
|
|
•
|
Transmission Revenues increased $65 million primarily due to continued investment in transmission assets.
|
•
|
Depreciation and Amortization expenses increased $10 million primarily due to a higher depreciable base.
|
•
|
Taxes Other Than Income Taxes increased $8 million primarily due to higher property taxes as a result of increased transmission investment.
|
•
|
Allowance for Equity Funds Used During Construction increased $3 million primarily due to higher CWIP balances.
|
•
|
Interest Expense increased $7 million primarily due to higher long-term debt balances.
|
•
|
Income Tax Expense increased $13 million primarily due to higher pretax book income.
|
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
||||
Nine Months Ended September 30, 2018
|
|
$
|
244.2
|
|
|
|
|
|
|
Changes in Transmission Revenues:
|
|
|
|
|
Transmission Revenues
|
|
183.9
|
|
|
Total Change in Transmission Revenues
|
|
183.9
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
(3.4
|
)
|
|
Depreciation and Amortization
|
|
(30.9
|
)
|
|
Taxes Other Than Income Taxes
|
|
(23.3
|
)
|
|
Interest Income
|
|
0.8
|
|
|
Allowance for Equity Funds Used During Construction
|
|
12.4
|
|
|
Interest Expense
|
|
(8.8
|
)
|
|
Total Change in Expenses and Other
|
|
(53.2
|
)
|
|
|
|
|
|
|
Income Tax Expense
|
|
(27.0
|
)
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|
$
|
347.9
|
|
•
|
Transmission Revenues increased $184 million primarily due to continued investment in transmission assets.
|
•
|
Depreciation and Amortization expenses increased $31 million primarily due to a higher depreciable base.
|
•
|
Taxes Other Than Income Taxes increased $23 million primarily due to higher property taxes as a result of increased transmission investment.
|
•
|
Allowance for Equity Funds Used During Construction increased $12 million primarily due to the following:
|
•
|
A $13 million increase primarily due to higher CWIP balances.
|
•
|
A $12 million increase due to the FERC’s approval of a settlement agreement.
|
•
|
A $13 million decrease due to recent FERC audit findings.
|
•
|
Interest Expense increased $9 million primarily due to higher long-term debt balances.
|
•
|
Income Tax Expense increased $27 million primarily due to higher pretax book income.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
||||||||
Transmission Revenues
|
|
$
|
54.0
|
|
|
$
|
46.0
|
|
|
$
|
162.1
|
|
|
$
|
132.3
|
|
Sales to AEP Affiliates
|
|
205.7
|
|
|
148.4
|
|
|
608.0
|
|
|
453.8
|
|
||||
Other Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
TOTAL REVENUES
|
|
259.7
|
|
|
194.4
|
|
|
770.1
|
|
|
586.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Operation
|
|
26.0
|
|
|
24.5
|
|
|
61.7
|
|
|
59.6
|
|
||||
Maintenance
|
|
3.2
|
|
|
2.8
|
|
|
8.9
|
|
|
7.6
|
|
||||
Depreciation and Amortization
|
|
45.3
|
|
|
34.9
|
|
|
128.4
|
|
|
97.5
|
|
||||
Taxes Other Than Income Taxes
|
|
42.9
|
|
|
35.2
|
|
|
126.2
|
|
|
102.9
|
|
||||
TOTAL EXPENSES
|
|
117.4
|
|
|
97.4
|
|
|
325.2
|
|
|
267.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
142.3
|
|
|
97.0
|
|
|
444.9
|
|
|
318.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Income
|
|
0.8
|
|
|
0.5
|
|
|
2.1
|
|
|
1.3
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
21.0
|
|
|
18.0
|
|
|
61.1
|
|
|
48.7
|
|
||||
Interest Expense
|
|
(26.4
|
)
|
|
(19.8
|
)
|
|
(69.5
|
)
|
|
(60.7
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
|
137.7
|
|
|
95.7
|
|
|
438.6
|
|
|
307.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense
|
|
30.1
|
|
|
17.6
|
|
|
90.7
|
|
|
63.7
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
107.6
|
|
|
$
|
78.1
|
|
|
$
|
347.9
|
|
|
$
|
244.2
|
|
|
|
Paid-in
Capital |
|
Retained
Earnings |
|
Total
|
||||||
TOTAL MEMBER'S EQUITY – DECEMBER 31, 2017
|
|
$
|
1,816.6
|
|
|
$
|
773.3
|
|
|
$
|
2,589.9
|
|
|
|
|
|
|
|
|
||||||
Capital Contribution 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
|
|
|||
|
|
|
|
|
|
|
||||||
Capital Contribution from Member
|
|
205.0
|
|
|
|
|
205.0
|
|
||||
Net Income
|
|
|
|
78.1
|
|
|
78.1
|
|
||||
TOTAL MEMBER'S EQUITY – SEPTEMBER 30, 2018
|
|
$
|
2,398.6
|
|
|
$
|
1,017.5
|
|
|
$
|
3,416.1
|
|
|
|
|
|
|
|
|
||||||
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
|
|
|
|
|
107.6
|
|
|
107.6
|
|
|||
TOTAL MEMBER'S EQUITY – SEPTEMBER 30, 2019
|
|
$
|
2,480.6
|
|
|
$
|
1,437.1
|
|
|
$
|
3,917.7
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Advances to Affiliates
|
|
$
|
275.2
|
|
|
$
|
96.9
|
|
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
23.5
|
|
|
11.8
|
|
||
Affiliated Companies
|
|
61.3
|
|
|
61.0
|
|
||
Total Accounts Receivable
|
|
84.8
|
|
|
72.8
|
|
||
Materials and Supplies
|
|
15.1
|
|
|
19.0
|
|
||
Accrued Tax Benefits
|
|
9.7
|
|
|
33.4
|
|
||
Prepayments and Other Current Assets
|
|
4.4
|
|
|
3.4
|
|
||
TOTAL CURRENT ASSETS
|
|
389.2
|
|
|
225.5
|
|
||
|
|
|
|
|
||||
TRANSMISSION PROPERTY
|
|
|
|
|
||||
Transmission Property
|
|
7,181.8
|
|
|
6,515.8
|
|
||
Other Property, Plant and Equipment
|
|
227.2
|
|
|
174.0
|
|
||
Construction Work in Progress
|
|
1,858.4
|
|
|
1,578.3
|
|
||
Total Transmission Property
|
|
9,267.4
|
|
|
8,268.1
|
|
||
Accumulated Depreciation and Amortization
|
|
368.8
|
|
|
271.9
|
|
||
TOTAL TRANSMISSION PROPERTY – NET
|
|
8,898.6
|
|
|
7,996.2
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Accounts Receivable – Affiliated Companies
|
|
4.8
|
|
|
—
|
|
||
Regulatory Assets
|
|
7.3
|
|
|
12.9
|
|
||
Deferred Property Taxes
|
|
47.2
|
|
|
157.9
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
5.6
|
|
|
1.6
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
64.9
|
|
|
172.4
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
9,352.7
|
|
|
$
|
8,394.1
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Advances from Affiliates
|
|
$
|
9.1
|
|
|
$
|
45.4
|
|
Accounts Payable:
|
|
|
|
|
||||
General
|
|
319.1
|
|
|
347.2
|
|
||
Affiliated Companies
|
|
57.1
|
|
|
56.0
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
85.0
|
|
|
85.0
|
|
||
Accrued Taxes
|
|
172.4
|
|
|
288.9
|
|
||
Accrued Interest
|
|
39.7
|
|
|
15.9
|
|
||
Obligations Under Operating Leases
|
|
2.3
|
|
|
—
|
|
||
Other Current Liabilities
|
|
25.5
|
|
|
3.8
|
|
||
TOTAL CURRENT LIABILITIES
|
|
710.2
|
|
|
842.2
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
|
|
3,426.9
|
|
|
2,738.0
|
|
||
Deferred Income Taxes
|
|
751.4
|
|
|
704.4
|
|
||
Regulatory Liabilities
|
|
541.2
|
|
|
521.3
|
|
||
Obligations Under Operating Leases
|
|
2.2
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
3.1
|
|
|
18.4
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
4,724.8
|
|
|
3,982.1
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
5,435.0
|
|
|
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
|
|
1,437.1
|
|
|
1,089.2
|
|
||
TOTAL MEMBER’S EQUITY
|
|
3,917.7
|
|
|
3,569.8
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
|
$
|
9,352.7
|
|
|
$
|
8,394.1
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
||||
Net Income
|
|
$
|
347.9
|
|
|
$
|
244.2
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
Depreciation and Amortization
|
|
128.4
|
|
|
97.5
|
|
||
Deferred Income Taxes
|
|
36.7
|
|
|
76.3
|
|
||
Allowance for Equity Funds Used During Construction
|
|
(61.1
|
)
|
|
(48.7
|
)
|
||
Property Taxes
|
|
110.7
|
|
|
86.9
|
|
||
Long-term Accounts Receivable – Affiliated
|
|
(4.8
|
)
|
|
(3.1
|
)
|
||
Change in Other Noncurrent Assets
|
|
5.8
|
|
|
12.7
|
|
||
Change in Other Noncurrent Liabilities
|
|
(3.8
|
)
|
|
18.0
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|||
Accounts Receivable, Net
|
|
(5.1
|
)
|
|
23.5
|
|
||
Materials and Supplies
|
|
3.9
|
|
|
(2.8
|
)
|
||
Accounts Payable
|
|
4.1
|
|
|
3.3
|
|
||
Accrued Taxes, Net
|
|
(92.8
|
)
|
|
(73.2
|
)
|
||
Accrued Interest
|
|
23.8
|
|
|
20.9
|
|
||
Other Current Assets
|
|
(1.0
|
)
|
|
(0.5
|
)
|
||
Other Current Liabilities
|
|
(8.5
|
)
|
|
(28.0
|
)
|
||
Net Cash Flows from Operating Activities
|
|
484.2
|
|
|
427.0
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Construction Expenditures
|
|
(959.9
|
)
|
|
(1,171.8
|
)
|
||
Change in Advances to Affiliates, Net
|
|
(178.3
|
)
|
|
(131.7
|
)
|
||
Acquisitions of Assets
|
|
(7.6
|
)
|
|
(13.2
|
)
|
||
Other Investing Activities
|
|
12.0
|
|
|
1.2
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(1,133.8
|
)
|
|
(1,315.5
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|||
Capital Contributions from Member
|
|
—
|
|
|
582.0
|
|
||
Issuance of Long-term Debt – Nonaffiliated
|
|
685.9
|
|
|
321.1
|
|
||
Change in Advances from Affiliates, Net
|
|
(36.3
|
)
|
|
(14.6
|
)
|
||
Net Cash Flows from Financing Activities
|
|
649.6
|
|
|
888.5
|
|
||
|
|
|
|
|
||||
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
|
|
$
|
43.0
|
|
|
$
|
38.4
|
|
Net Cash Paid (Received) for Income Taxes
|
|
29.8
|
|
|
(32.1
|
)
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
315.1
|
|
|
237.0
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
2,728
|
|
|
2,662
|
|
|
8,401
|
|
|
8,895
|
|
Commercial
|
1,721
|
|
|
1,715
|
|
|
4,812
|
|
|
4,980
|
|
Industrial
|
2,487
|
|
|
2,433
|
|
|
7,180
|
|
|
7,181
|
|
Miscellaneous
|
216
|
|
|
215
|
|
|
640
|
|
|
644
|
|
Total Retail (a)
|
7,152
|
|
|
7,025
|
|
|
21,033
|
|
|
21,700
|
|
|
|
|
|
|
|
|
|
||||
Wholesale
|
938
|
|
|
1,143
|
|
|
2,667
|
|
|
2,252
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
8,090
|
|
|
8,168
|
|
|
23,700
|
|
|
23,952
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
1,295
|
|
|
1,518
|
|
Normal – Heating (b)
|
3
|
|
|
2
|
|
|
1,407
|
|
|
1,410
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
1,071
|
|
|
950
|
|
|
1,530
|
|
|
1,495
|
|
Normal – Cooling (b)
|
815
|
|
|
814
|
|
|
1,194
|
|
|
1,184
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Cooling degree days are calculated on a 65 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
||||
Third Quarter of 2018
|
|
$
|
87.1
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
68.2
|
|
|
Transmission Revenues
|
|
12.8
|
|
|
Other Revenues
|
|
0.7
|
|
|
Total Change in Gross Margin
|
|
81.7
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
27.2
|
|
|
Depreciation and Amortization
|
|
(13.0
|
)
|
|
Taxes Other Than Income Taxes
|
|
(3.1
|
)
|
|
Interest Income
|
|
(0.1
|
)
|
|
Carrying Costs Income
|
|
(0.2
|
)
|
|
Allowance for Equity Funds Used During Construction
|
|
0.7
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.2
|
)
|
|
Interest Expense
|
|
(0.8
|
)
|
|
Total Change in Expenses and Other
|
|
10.5
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(75.0
|
)
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
104.3
|
|
•
|
Retail Margins increased $68 million primarily due to the following:
|
•
|
A $78 million increase due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below.
|
•
|
A $15 million increase in deferred fuel related to recoverable PJM expenses that were offset below.
|
•
|
An $11 million increase in weather-related usage primarily driven by a 13% increase in cooling degree days.
|
•
|
A $10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense in the prior year.
|
•
|
An $8 million increase due to revenue primarily from rate riders in West Virginia. This increase was offset in other expense items below.
|
•
|
A $6 million increase due to a base rate increase in West Virginia implemented in March 2019.
|
•
|
A $56 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $3 million decrease in weather-normalized margins occurring across all retail classes.
|
•
|
Transmission Revenues increased $13 million primarily due to 2018 provisions for refunds.
|
•
|
Other Operation and Maintenance expenses decreased $27 million primarily due to the following:
|
•
|
A $39 million decrease due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement.
|
•
|
A $4 million decrease in maintenance expense at various generation plants.
|
•
|
An $11 million increase in recoverable PJM transmission expenses which were partially offset within Gross Margins above.
|
•
|
A $9 million increase in PJM expenses related to the annual formula rate true-up.
|
•
|
Depreciation and Amortization expenses increased $13 million primarily due to a higher depreciable base and an increase in West Virginia depreciation rates beginning in March 2019.
|
•
|
Taxes Other Than Income Taxes increased $3 million primarily due to an increase in West Virginia business and occupational taxes.
|
•
|
Income Tax Expense (Benefit) increased $75 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 West Virginia Tax Reform settlement. This increase was partially offset in Gross Margin and Other Operation and Maintenance expenses above.
|
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
||||
Nine Months Ended September 30, 2018
|
|
$
|
290.0
|
|
|
|
|
||
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
(11.0
|
)
|
|
Margins from Off-system Sales
|
|
2.0
|
|
|
Transmission Revenues
|
|
25.9
|
|
|
Other Revenues
|
|
1.1
|
|
|
Total Change in Gross Margin
|
|
18.0
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
14.4
|
|
|
Depreciation and Amortization
|
|
(28.8
|
)
|
|
Taxes Other Than Income Taxes
|
|
(7.4
|
)
|
|
Interest Income
|
|
0.8
|
|
|
Carrying Costs Income
|
|
(1.2
|
)
|
|
Allowance for Equity Funds Used During Construction
|
|
2.9
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.6
|
)
|
|
Interest Expense
|
|
(6.5
|
)
|
|
Total Change in Expenses and Other
|
|
(26.4
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
11.9
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|
$
|
293.5
|
|
•
|
Retail Margins decreased $11 million primarily due to the following:
|
•
|
A $91 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $23 million decrease in weather-normalized margins occurring across all retail classes.
|
•
|
A $22 million decrease in weather-related usage primarily driven by a 15% decrease in heating degree days partially offset by a 2% increase in cooling degree days.
|
•
|
A $78 million increase due to a 2018 reduction in the deferred fuel under recovery balance as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below.
|
•
|
A $14 million increase primarily due to revenue from rate riders in West Virginia. This increase was offset in other expense items below.
|
•
|
A $12 million increase due to base rate increases in West Virginia implemented in March 2019.
|
•
|
A $12 million increase in deferred fuel related to recoverable PJM expenses that were offset below.
|
•
|
A $10 million increase due to 2018 Virginia legislation which increased non-recoverable fuel expense at APCo in the prior year.
|
•
|
Transmission Revenues increased $26 million primarily due to 2018 provisions for refunds.
|
•
|
Other Operation and Maintenance expenses decreased $14 million primarily due to the following:
|
•
|
A $39 million decrease due to the extinguishment of certain regulatory asset balances as agreed to within the 2018 West Virginia Tax Reform settlement.
|
•
|
A $10 million decrease in expense due to lower current year amortization of certain regulatory assets that were extinguished in August 2018 as agreed to within the 2018 West Virginia Tax Reform settlement.
|
•
|
An $8 million decrease in maintenance expense at various generation plants.
|
•
|
A $5 million decrease in vegetation management expenses.
|
•
|
A $5 million decrease in storm-related expenses.
|
•
|
A $5 million decrease in estimated expenses for claims related to asbestos exposure.
|
•
|
A $42 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
•
|
A $13 million increase due to 2019 contributions to benefit low income West Virginia residential customers as a result of the 2018 West Virginia Tax Reform settlement. This increase was offset in Income Tax Expense (Benefit) below.
|
•
|
A $5 million increase in employee-related expenses.
|
•
|
Depreciation and Amortization expenses increased $29 million primarily due to a higher depreciable base and an increase in West Virginia depreciation rates beginning in March 2019.
|
•
|
Taxes Other Than Income Taxes increased $7 million primarily due to an increase in West Virginia business and occupational taxes.
|
•
|
Interest Expense increased $7 million primarily due to higher long-term debt balances.
|
•
|
Income Tax Expense (Benefit) decreased $12 million primarily due to an increase in amortization of Excess ADIT not subject to normalization requirements and a decrease in pretax book income. This benefit was partially offset by the one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 West Virginia Tax Reform settlement. This decrease was partially offset in Gross Margin and Other Operation and Maintenance expenses above.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
Electric Generation, Transmission and Distribution
|
|
$
|
696.7
|
|
|
$
|
716.8
|
|
|
$
|
2,041.3
|
|
|
$
|
2,103.1
|
|
Sales to AEP Affiliates
|
|
56.6
|
|
|
42.9
|
|
|
154.6
|
|
|
138.7
|
|
||||
Other Revenues
|
|
2.2
|
|
|
2.3
|
|
|
8.2
|
|
|
7.6
|
|
||||
TOTAL REVENUES
|
|
755.5
|
|
|
762.0
|
|
|
2,204.1
|
|
|
2,249.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel and Other Consumables Used for Electric Generation
|
|
177.3
|
|
|
263.4
|
|
|
521.8
|
|
|
487.7
|
|
||||
Purchased Electricity for Resale
|
|
78.3
|
|
|
80.4
|
|
|
253.4
|
|
|
350.8
|
|
||||
Other Operation
|
|
140.4
|
|
|
131.9
|
|
|
416.2
|
|
|
380.0
|
|
||||
Maintenance
|
|
61.5
|
|
|
97.2
|
|
|
184.3
|
|
|
234.9
|
|
||||
Depreciation and Amortization
|
|
118.7
|
|
|
105.7
|
|
|
348.3
|
|
|
319.5
|
|
||||
Taxes Other Than Income Taxes
|
|
36.7
|
|
|
33.6
|
|
|
108.5
|
|
|
101.1
|
|
||||
TOTAL EXPENSES
|
|
612.9
|
|
|
712.2
|
|
|
1,832.5
|
|
|
1,874.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
142.6
|
|
|
49.8
|
|
|
371.6
|
|
|
375.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Income
|
|
0.3
|
|
|
0.4
|
|
|
2.1
|
|
|
1.3
|
|
||||
Carrying Costs Income
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
1.2
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
4.8
|
|
|
4.1
|
|
|
12.5
|
|
|
9.6
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
4.3
|
|
|
4.5
|
|
|
12.8
|
|
|
13.4
|
|
||||
Interest Expense
|
|
(51.6
|
)
|
|
(50.8
|
)
|
|
(152.5
|
)
|
|
(146.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
100.4
|
|
|
8.2
|
|
|
246.5
|
|
|
254.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense (Benefit)
|
|
(3.9
|
)
|
|
(78.9
|
)
|
|
(47.0
|
)
|
|
(35.1
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
104.3
|
|
|
$
|
87.1
|
|
|
$
|
293.5
|
|
|
$
|
290.0
|
|
The common stock of APCo is wholly-owned by Parent.
|
|
|||
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
104.3
|
|
|
$
|
87.1
|
|
|
$
|
293.5
|
|
|
$
|
290.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash Flow Hedges, Net of Tax of $(0.1) and $(0.1) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.2) and $(0.2) for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(0.7
|
)
|
||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $(0.2) and $(0.2) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.5) and $(0.6) for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
(1.9
|
)
|
|
(2.3
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL OTHER COMPREHENSIVE LOSS
|
|
(0.9
|
)
|
|
(1.0
|
)
|
|
(2.6
|
)
|
|
(3.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
103.4
|
|
|
$
|
86.1
|
|
|
$
|
290.9
|
|
|
$
|
287.0
|
|
|
|
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock Dividends
|
|
|
|
|
|
(40.0
|
)
|
|
|
|
(40.0
|
)
|
||||||||
Net Income
|
|
|
|
|
|
87.1
|
|
|
|
|
87.1
|
|
||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018
|
|
$
|
260.4
|
|
|
$
|
1,828.7
|
|
|
$
|
1,884.2
|
|
|
$
|
(1.4
|
)
|
|
$
|
3,971.9
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock Dividends
|
|
|
|
|
|
|
|
(25.0
|
)
|
|
|
|
|
(25.0
|
)
|
|||||
Net Income
|
|
|
|
|
|
|
|
104.3
|
|
|
|
|
|
104.3
|
|
|||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019
|
|
$
|
260.4
|
|
|
$
|
1,828.7
|
|
|
$
|
2,090.5
|
|
|
$
|
(7.6
|
)
|
|
$
|
4,172.0
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
3.5
|
|
|
$
|
4.2
|
|
Restricted Cash for Securitized Funding
|
|
17.1
|
|
|
25.6
|
|
||
Advances to Affiliates
|
|
22.7
|
|
|
23.0
|
|
||
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
112.1
|
|
|
146.5
|
|
||
Affiliated Companies
|
|
56.4
|
|
|
73.4
|
|
||
Accrued Unbilled Revenues
|
|
56.9
|
|
|
63.5
|
|
||
Miscellaneous
|
|
1.0
|
|
|
2.3
|
|
||
Allowance for Uncollectible Accounts
|
|
(2.3
|
)
|
|
(2.3
|
)
|
||
Total Accounts Receivable
|
|
224.1
|
|
|
283.4
|
|
||
Fuel
|
|
108.8
|
|
|
61.3
|
|
||
Materials and Supplies
|
|
102.1
|
|
|
100.1
|
|
||
Risk Management Assets
|
|
56.5
|
|
|
57.2
|
|
||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
43.7
|
|
|
99.6
|
|
||
Prepayments and Other Current Assets
|
|
36.3
|
|
|
44.3
|
|
||
TOTAL CURRENT ASSETS
|
|
614.8
|
|
|
698.7
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
Electric:
|
|
|
|
|
||||
Generation
|
|
6,560.5
|
|
|
6,509.6
|
|
||
Transmission
|
|
3,412.4
|
|
|
3,317.7
|
|
||
Distribution
|
|
4,126.7
|
|
|
3,989.4
|
|
||
Other Property, Plant and Equipment
|
|
525.3
|
|
|
485.8
|
|
||
Construction Work in Progress
|
|
667.4
|
|
|
490.2
|
|
||
Total Property, Plant and Equipment
|
|
15,292.3
|
|
|
14,792.7
|
|
||
Accumulated Depreciation and Amortization
|
|
4,300.2
|
|
|
4,124.4
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
10,992.1
|
|
|
10,668.3
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Regulatory Assets
|
|
474.2
|
|
|
475.8
|
|
||
Securitized Assets
|
|
240.6
|
|
|
258.7
|
|
||
Long-term Risk Management Assets
|
|
0.2
|
|
|
0.9
|
|
||
Operating Lease Assets
|
|
79.4
|
|
|
—
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
159.3
|
|
|
188.1
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
953.7
|
|
|
923.5
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
12,560.6
|
|
|
$
|
12,290.5
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Advances from Affiliates
|
|
$
|
40.4
|
|
|
$
|
205.6
|
|
Accounts Payable:
|
|
|
|
|
|
|
||
General
|
|
298.5
|
|
|
263.8
|
|
||
Affiliated Companies
|
|
90.8
|
|
|
84.0
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
215.6
|
|
|
430.7
|
|
||
Risk Management Liabilities
|
|
1.1
|
|
|
0.4
|
|
||
Customer Deposits
|
|
85.1
|
|
|
88.4
|
|
||
Accrued Taxes
|
|
58.2
|
|
|
89.3
|
|
||
Accrued Interest
|
|
67.5
|
|
|
41.5
|
|
||
Obligations Under Operating Leases
|
|
15.3
|
|
|
—
|
|
||
Other Current Liabilities
|
|
107.6
|
|
|
150.3
|
|
||
TOTAL CURRENT LIABILITIES
|
|
980.1
|
|
|
1,354.0
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
|
|
4,147.3
|
|
|
3,631.9
|
|
||
Long-term Risk Management Liabilities
|
|
0.3
|
|
|
0.2
|
|
||
Deferred Income Taxes
|
|
1,640.8
|
|
|
1,625.8
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,336.9
|
|
|
1,449.7
|
|
||
Asset Retirement Obligations
|
|
108.2
|
|
|
107.1
|
|
||
Employee Benefits and Pension Obligations
|
|
52.7
|
|
|
57.1
|
|
||
Obligations Under Operating Leases
|
|
64.8
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
57.5
|
|
|
58.6
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
7,408.5
|
|
|
6,930.4
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
8,388.6
|
|
|
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
|
|
2,090.5
|
|
|
1,922.0
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
(7.6
|
)
|
|
(5.0
|
)
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
4,172.0
|
|
|
4,006.1
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
12,560.6
|
|
|
$
|
12,290.5
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
293.5
|
|
|
$
|
290.0
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
Depreciation and Amortization
|
|
348.3
|
|
|
319.5
|
|
||
Deferred Income Taxes
|
|
(101.9
|
)
|
|
(83.8
|
)
|
||
Allowance for Equity Funds Used During Construction
|
|
(12.5
|
)
|
|
(9.6
|
)
|
||
Mark-to-Market of Risk Management Contracts
|
|
2.2
|
|
|
(43.7
|
)
|
||
Deferred Fuel Over/Under-Recovery, Net
|
|
60.8
|
|
|
12.8
|
|
||
Change in Other Noncurrent Assets
|
|
6.7
|
|
|
94.8
|
|
||
Change in Other Noncurrent Liabilities
|
|
(29.6
|
)
|
|
3.8
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
Accounts Receivable, Net
|
|
61.7
|
|
|
39.4
|
|
||
Fuel, Materials and Supplies
|
|
(49.2
|
)
|
|
53.0
|
|
||
Accounts Payable
|
|
40.1
|
|
|
(21.5
|
)
|
||
Accrued Taxes, Net
|
|
(30.2
|
)
|
|
(20.2
|
)
|
||
Other Current Assets
|
|
6.8
|
|
|
(7.9
|
)
|
||
Other Current Liabilities
|
|
(25.1
|
)
|
|
64.1
|
|
||
Net Cash Flows from Operating Activities
|
|
571.6
|
|
|
690.7
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Construction Expenditures
|
|
(607.1
|
)
|
|
(575.8
|
)
|
||
Change in Advances to Affiliates, Net
|
|
0.3
|
|
|
0.4
|
|
||
Other Investing Activities
|
|
22.8
|
|
|
10.0
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(584.0
|
)
|
|
(565.4
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Issuance of Long-term Debt – Nonaffiliated
|
|
478.2
|
|
|
103.3
|
|
||
Change in Advances from Affiliates, Net
|
|
(165.2
|
)
|
|
(87.5
|
)
|
||
Retirement of Long-term Debt – Nonaffiliated
|
|
(180.4
|
)
|
|
(24.0
|
)
|
||
Principal Payments for Finance Lease Obligations
|
|
(5.0
|
)
|
|
(5.2
|
)
|
||
Dividends Paid on Common Stock
|
|
(125.0
|
)
|
|
(120.0
|
)
|
||
Other Financing Activities
|
|
0.6
|
|
|
1.0
|
|
||
Net Cash Flows from (Used for) Financing Activities
|
|
3.2
|
|
|
(132.4
|
)
|
||
|
|
|
|
|
||||
Net Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Funding
|
|
(9.2
|
)
|
|
(7.1
|
)
|
||
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
|
|
$
|
20.6
|
|
|
$
|
12.1
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
120.6
|
|
|
$
|
104.5
|
|
Net Cash Paid for Income Taxes
|
|
58.7
|
|
|
26.7
|
|
||
Noncash Acquisitions Under Finance Leases
|
|
7.1
|
|
|
3.9
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
134.2
|
|
|
87.6
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
1,496
|
|
|
1,562
|
|
|
4,159
|
|
|
4,430
|
|
Commercial
|
1,312
|
|
|
1,348
|
|
|
3,555
|
|
|
3,708
|
|
Industrial
|
1,937
|
|
|
2,018
|
|
|
5,742
|
|
|
5,920
|
|
Miscellaneous
|
16
|
|
|
15
|
|
|
49
|
|
|
50
|
|
Total Retail (a)
|
4,761
|
|
|
4,943
|
|
|
13,505
|
|
|
14,108
|
|
|
|
|
|
|
|
|
|
||||
Wholesale
|
2,398
|
|
|
2,613
|
|
|
6,842
|
|
|
7,927
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
7,159
|
|
|
7,556
|
|
|
20,347
|
|
|
22,035
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Actual – Heating (a)
|
—
|
|
|
2
|
|
|
2,456
|
|
|
2,523
|
|
Normal – Heating (b)
|
11
|
|
|
10
|
|
|
2,412
|
|
|
2,413
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
684
|
|
|
722
|
|
|
917
|
|
|
1,084
|
|
Normal – Cooling (b)
|
573
|
|
|
574
|
|
|
836
|
|
|
837
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Cooling degree days are calculated on a 65 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
72.7
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
17.5
|
|
|
Transmission Revenues
|
|
(1.7
|
)
|
|
Other Revenues
|
|
3.4
|
|
|
Total Change in Gross Margin
|
|
19.2
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
(17.1
|
)
|
|
Depreciation and Amortization
|
|
(2.9
|
)
|
|
Taxes Other Than Income Taxes
|
|
(2.1
|
)
|
|
Other Income
|
|
(2.6
|
)
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.1
|
)
|
|
Interest Expense
|
|
5.7
|
|
|
Total Change in Expenses and Other
|
|
(19.1
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
16.0
|
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
88.8
|
|
•
|
Retail Margins increased $18 million primarily due to the following:
|
•
|
A $19 million increase from rate proceedings. This increase was partially offset in other expense items below.
|
•
|
An $8 million increase related to rider revenues, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below.
|
•
|
A $6 million decrease in weather-normalized margins across all retail classes.
|
•
|
A $3 million decrease in weather-related usage primarily due to a 5% decrease in cooling degree days.
|
•
|
Other Revenues increased $3 million primarily due to an increase in barging deliveries by River Transportation Division (RTD). The increase in RTD revenue was offset by a corresponding increase in Other Operation and Maintenance expenses for barging activities discussed below.
|
•
|
Other Operation and Maintenance expenses increased $17 million primarily due to the following:
|
•
|
A $15 million increase in transmission expenses primarily due to a $10 million increase in recoverable PJM expenses and a $6 million increase from the amortization of credits under the 2018 Regional Transmission Enhancement Plan settlement. This increase was partially offset in Retail Margins above.
|
•
|
A $4 million increase in RTD expenses for barging activities. The increase in RTD expenses was offset by a corresponding increase in Other Revenues from barging activities discussed above.
|
•
|
Depreciation and Amortization expenses increased $3 million primarily due to a higher depreciable base. This increase was partially offset in Retail Margins above.
|
•
|
Interest Expense decreased $6 million primarily due to the reissuance of long-term debt at lower interest rates in 2018.
|
•
|
Income Tax Expense (Benefit) decreased $16 million primarily due to increased amortization of Excess ADIT not subject to normalization requirements and a decrease in flow-through tax expense.
|
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|
||
Nine Months Ended September 30, 2018
|
|
$
|
231.6
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
89.7
|
|
|
Margins from Off-system Sales
|
|
(9.4
|
)
|
|
Transmission Revenues
|
|
(12.0
|
)
|
|
Other Revenues
|
|
3.7
|
|
|
Total Change in Gross Margin
|
|
72.0
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
(36.6
|
)
|
|
Depreciation and Amortization
|
|
(54.5
|
)
|
|
Taxes Other Than Income Taxes
|
|
(5.7
|
)
|
|
Other Income
|
|
(0.1
|
)
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.3
|
)
|
|
Interest Expense
|
|
9.7
|
|
|
Total Change in Expenses and Other
|
|
(87.5
|
)
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
31.9
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|
$
|
248.0
|
|
•
|
Retail Margins increased $90 million primarily due to the following:
|
•
|
A $94 million increase from rate proceedings, inclusive of a $30 million decrease due to the impact of Tax Reform. This increase was partially offset in other expense items below.
|
•
|
A $21 million increase related to rider revenues, primarily due to the timing of the Indiana PJM/OSS rider recovery. This increase was partially offset in other expense items below.
|
•
|
A $6 million decrease in fuel-related expenses due to timing of recovery for fuel and other variable production costs related to wholesale contracts.
|
•
|
A $19 million decrease in weather-related usage primarily due to a 15% decrease in cooling degree days and a 3% decrease in heating degree days.
|
•
|
A $16 million decrease in weather-normalized margins across all retail classes.
|
•
|
Margins from Off-system Sales decreased $9 million primarily due to mid-year 2018 changes in the OSS sharing mechanism.
|
•
|
Transmission Revenues decreased $12 million primarily due to the 2018 PJM Transmission formula rate true-up.
|
•
|
Other Revenues increased $4 million primarily due to an increase in barging deliveries by RTD. The increase in RTD revenue was offset by a corresponding increase in Other Operation and Maintenance expenses for barging activities discussed below.
|
•
|
A $32 million increase in transmission expenses primarily due to a $44 million increase in recoverable PJM expenses, partially offset by an $11 million decrease from the amortization of credits under the 2018 Regional Transmission Enhancement Plan settlement. This increase was partially offset in Retail Margins above.
|
•
|
A $6 million increase in RTD expenses for barging activities. The increase in RTD expenses was offset by a corresponding increase in Other Revenues from barging activities discussed above.
|
•
|
A $5 million increase in distribution costs primarily due to vegetation management expenses.
|
•
|
A $9 million decrease in generation expenses at Cook Plant primarily due to decreased incremental refueling outage costs.
|
•
|
Depreciation and Amortization expenses increased $55 million primarily due to increased depreciation rates approved in 2018 and a higher depreciable base. This increase was partially offset in Retail Margins above.
|
•
|
Taxes Other Than Income Taxes increased $6 million due to property taxes driven by an increase in utility plant.
|
•
|
Interest Expense decreased $10 million primarily due to the reissuance of long-term debt at lower interest rates in 2018.
|
•
|
Income Tax Expense (Benefit) decreased $32 million primarily due to increased amortization of Excess ADIT not subject to normalization requirements and a decrease in flow-through tax expense.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
Electric Generation, Transmission and Distribution
|
|
$
|
589.1
|
|
|
$
|
609.9
|
|
|
$
|
1,703.2
|
|
|
$
|
1,723.9
|
|
Sales to AEP Affiliates
|
|
2.7
|
|
|
3.4
|
|
|
7.3
|
|
|
18.9
|
|
||||
Other Revenues – Affiliated
|
|
16.2
|
|
|
13.7
|
|
|
50.4
|
|
|
43.3
|
|
||||
Other Revenues – Nonaffiliated
|
|
3.1
|
|
|
2.7
|
|
|
7.6
|
|
|
10.1
|
|
||||
TOTAL REVENUES
|
|
611.1
|
|
|
629.7
|
|
|
1,768.5
|
|
|
1,796.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel and Other Consumables Used for Electric Generation
|
|
61.2
|
|
|
95.9
|
|
|
161.2
|
|
|
246.8
|
|
||||
Purchased Electricity for Resale
|
|
44.8
|
|
|
48.9
|
|
|
163.3
|
|
|
167.7
|
|
||||
Purchased Electricity from AEP Affiliates
|
|
61.0
|
|
|
60.0
|
|
|
172.1
|
|
|
181.8
|
|
||||
Other Operation
|
|
172.7
|
|
|
149.3
|
|
|
467.7
|
|
|
425.8
|
|
||||
Maintenance
|
|
50.9
|
|
|
57.2
|
|
|
163.8
|
|
|
169.1
|
|
||||
Depreciation and Amortization
|
|
88.1
|
|
|
85.2
|
|
|
261.6
|
|
|
207.1
|
|
||||
Taxes Other Than Income Taxes
|
|
25.1
|
|
|
23.0
|
|
|
78.6
|
|
|
72.9
|
|
||||
TOTAL EXPENSES
|
|
503.8
|
|
|
519.5
|
|
|
1,468.3
|
|
|
1,471.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
107.3
|
|
|
110.2
|
|
|
300.2
|
|
|
325.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Income
|
|
3.5
|
|
|
6.1
|
|
|
15.3
|
|
|
15.4
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
4.5
|
|
|
4.6
|
|
|
13.3
|
|
|
13.6
|
|
||||
Interest Expense
|
|
(28.8
|
)
|
|
(34.5
|
)
|
|
(85.9
|
)
|
|
(95.6
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
86.5
|
|
|
86.4
|
|
|
242.9
|
|
|
258.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense (Benefit)
|
|
(2.3
|
)
|
|
13.7
|
|
|
(5.1
|
)
|
|
26.8
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
88.8
|
|
|
$
|
72.7
|
|
|
$
|
248.0
|
|
|
$
|
231.6
|
|
The common stock of I&M is wholly-owned by Parent.
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
88.8
|
|
|
$
|
72.7
|
|
|
$
|
248.0
|
|
|
$
|
231.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash Flow Hedges, Net of Tax of $0.1 and $0.1 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0.3 and $0.3 for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
0.4
|
|
|
0.3
|
|
|
1.2
|
|
|
1.2
|
|
||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $0 and $0 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0 and $0 for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
|
0.4
|
|
|
0.3
|
|
|
1.1
|
|
|
1.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
89.2
|
|
|
$
|
73.0
|
|
|
$
|
249.1
|
|
|
$
|
232.8
|
|
|
|
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock Dividends
|
|
|
|
|
|
(38.5
|
)
|
|
|
|
(38.5
|
)
|
||||||||
Net Income
|
|
|
|
|
|
72.7
|
|
|
|
|
72.7
|
|
||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018
|
|
$
|
56.6
|
|
|
$
|
980.9
|
|
|
$
|
1,318.6
|
|
|
$
|
(13.6
|
)
|
|
$
|
2,342.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock Dividends
|
|
|
|
|
|
(20.0
|
)
|
|
|
|
(20.0
|
)
|
||||||||
Net Income
|
|
|
|
|
|
88.8
|
|
|
|
|
88.8
|
|
||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
|
0.4
|
|
|
0.4
|
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019
|
|
$
|
56.6
|
|
|
$
|
980.9
|
|
|
$
|
1,517.1
|
|
|
$
|
(12.7
|
)
|
|
$
|
2,541.9
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
2.5
|
|
|
$
|
2.4
|
|
Advances to Affiliates
|
|
13.2
|
|
|
12.7
|
|
||
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
45.0
|
|
|
63.1
|
|
||
Affiliated Companies
|
|
45.3
|
|
|
75.0
|
|
||
Accrued Unbilled Revenues
|
|
2.7
|
|
|
3.6
|
|
||
Miscellaneous
|
|
1.0
|
|
|
1.4
|
|
||
Allowance for Uncollectible Accounts
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Total Accounts Receivable
|
|
93.9
|
|
|
143.0
|
|
||
Fuel
|
|
39.8
|
|
|
37.3
|
|
||
Materials and Supplies
|
|
169.9
|
|
|
167.3
|
|
||
Risk Management Assets
|
|
10.5
|
|
|
8.6
|
|
||
Accrued Tax Benefits
|
|
43.2
|
|
|
26.6
|
|
||
Accrued Reimbursement of Spent Nuclear Fuel Costs
|
|
24.2
|
|
|
7.9
|
|
||
Prepayments and Other Current Assets
|
|
16.9
|
|
|
24.6
|
|
||
TOTAL CURRENT ASSETS
|
|
414.1
|
|
|
430.4
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
Electric:
|
|
|
|
|
||||
Generation
|
|
5,002.0
|
|
|
4,887.2
|
|
||
Transmission
|
|
1,614.5
|
|
|
1,576.8
|
|
||
Distribution
|
|
2,373.3
|
|
|
2,249.7
|
|
||
Other Property, Plant and Equipment (Including Coal Mining and Nuclear Fuel)
|
|
607.2
|
|
|
583.8
|
|
||
Construction Work in Progress
|
|
516.2
|
|
|
465.3
|
|
||
Total Property, Plant and Equipment
|
|
10,113.2
|
|
|
9,762.8
|
|
||
Accumulated Depreciation, Depletion and Amortization
|
|
3,280.5
|
|
|
3,151.6
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
6,832.7
|
|
|
6,611.2
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Regulatory Assets
|
|
490.2
|
|
|
512.5
|
|
||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
2,835.2
|
|
|
2,474.9
|
|
||
Long-term Risk Management Assets
|
|
0.1
|
|
|
0.6
|
|
||
Operating Lease Assets
|
|
295.3
|
|
|
—
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
129.6
|
|
|
193.0
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
3,750.4
|
|
|
3,181.0
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
10,997.2
|
|
|
$
|
10,222.6
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Advances from Affiliates
|
|
$
|
102.4
|
|
|
$
|
1.1
|
|
Accounts Payable:
|
|
|
|
|
||||
General
|
|
148.4
|
|
|
174.7
|
|
||
Affiliated Companies
|
|
71.6
|
|
|
70.2
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
(September 30, 2019 and December 31, 2018 Amounts Include $68.8 and $76.8, Respectively, Related to DCC Fuel) |
|
147.4
|
|
|
155.4
|
|
||
Risk Management Liabilities
|
|
0.2
|
|
|
0.3
|
|
||
Customer Deposits
|
|
37.9
|
|
|
38.0
|
|
||
Accrued Taxes
|
|
57.9
|
|
|
90.7
|
|
||
Accrued Interest
|
|
20.5
|
|
|
37.3
|
|
||
Obligations Under Operating Leases
|
|
82.0
|
|
|
—
|
|
||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
7.3
|
|
|
27.4
|
|
||
Other Current Liabilities
|
|
85.5
|
|
|
103.0
|
|
||
TOTAL CURRENT LIABILITIES
|
|
761.1
|
|
|
698.1
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
|
|
2,884.1
|
|
|
2,880.0
|
|
||
Long-term Risk Management Liabilities
|
|
—
|
|
|
0.1
|
|
||
Deferred Income Taxes
|
|
970.0
|
|
|
948.0
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,809.0
|
|
|
1,574.5
|
|
||
Asset Retirement Obligations
|
|
1,731.5
|
|
|
1,681.3
|
|
||
Obligations Under Operating Leases
|
|
234.0
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
65.6
|
|
|
87.8
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
7,694.2
|
|
|
7,171.7
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
8,455.3
|
|
|
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
|
|
1,517.1
|
|
|
1,329.1
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
(12.7
|
)
|
|
(13.8
|
)
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,541.9
|
|
|
2,352.8
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
10,997.2
|
|
|
$
|
10,222.6
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
248.0
|
|
|
$
|
231.6
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|||
Depreciation and Amortization
|
|
261.6
|
|
|
207.1
|
|
||
Rent - Rockport Plant, Unit 2
|
|
58.9
|
|
|
—
|
|
||
Deferred Income Taxes
|
|
(29.9
|
)
|
|
28.1
|
|
||
Amortization (Deferral) of Incremental Nuclear Refueling Outage Expenses, Net
|
|
(11.6
|
)
|
|
13.5
|
|
||
Allowance for Equity Funds Used During Construction
|
|
(16.4
|
)
|
|
(8.0
|
)
|
||
Mark-to-Market of Risk Management Contracts
|
|
(1.6
|
)
|
|
(0.3
|
)
|
||
Amortization of Nuclear Fuel
|
|
71.6
|
|
|
82.6
|
|
||
Deferred Fuel Over/Under-Recovery, Net
|
|
(20.0
|
)
|
|
29.6
|
|
||
Change in Other Noncurrent Assets
|
|
46.0
|
|
|
(12.0
|
)
|
||
Change in Other Noncurrent Liabilities
|
|
13.8
|
|
|
46.3
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
Accounts Receivable, Net
|
|
50.5
|
|
|
6.5
|
|
||
Fuel, Materials and Supplies
|
|
(4.6
|
)
|
|
(1.1
|
)
|
||
Accounts Payable
|
|
(7.3
|
)
|
|
(34.7
|
)
|
||
Accrued Taxes, Net
|
|
(49.4
|
)
|
|
(7.1
|
)
|
||
Payments for Rockport Plant, Unit 2 Operating Lease
|
|
(36.9
|
)
|
|
—
|
|
||
Other Current Assets
|
|
7.8
|
|
|
4.9
|
|
||
Other Current Liabilities
|
|
(49.7
|
)
|
|
(15.7
|
)
|
||
Net Cash Flows from Operating Activities
|
|
530.8
|
|
|
571.3
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Construction Expenditures
|
|
(431.7
|
)
|
|
(434.5
|
)
|
||
Change in Advances to Affiliates, Net
|
|
(0.5
|
)
|
|
(60.1
|
)
|
||
Purchases of Investment Securities
|
|
(915.7
|
)
|
|
(1,589.0
|
)
|
||
Sales of Investment Securities
|
|
871.4
|
|
|
1,550.9
|
|
||
Acquisitions of Nuclear Fuel
|
|
(91.9
|
)
|
|
(26.1
|
)
|
||
Other Investing Activities
|
|
10.5
|
|
|
9.2
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(557.9
|
)
|
|
(549.6
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Issuance of Long-term Debt – Nonaffiliated
|
|
62.9
|
|
|
1,168.1
|
|
||
Change in Advances from Affiliates, Net
|
|
101.3
|
|
|
(211.6
|
)
|
||
Retirement of Long-term Debt – Nonaffiliated
|
|
(73.6
|
)
|
|
(856.1
|
)
|
||
Principal Payments for Finance Lease Obligations
|
|
(4.0
|
)
|
|
(7.3
|
)
|
||
Dividends Paid on Common Stock
|
|
(60.0
|
)
|
|
(105.5
|
)
|
||
Other Financing Activities
|
|
0.6
|
|
|
(9.0
|
)
|
||
Net Cash Flows from (Used for) Financing Activities
|
|
27.2
|
|
|
(21.4
|
)
|
||
|
|
|
|
|
||||
Net Increase in Cash and Cash Equivalents
|
|
0.1
|
|
|
0.3
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
|
2.4
|
|
|
1.3
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
2.5
|
|
|
$
|
1.6
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
98.7
|
|
|
$
|
104.4
|
|
Net Cash Paid (Received) for Income Taxes
|
|
40.2
|
|
|
(26.5
|
)
|
||
Noncash Acquisitions Under Finance Leases
|
|
8.1
|
|
|
4.4
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
76.3
|
|
|
66.4
|
|
||
Acquisition of Nuclear Fuel Included in Current Liabilities as of September 30,
|
|
—
|
|
|
12.1
|
|
||
Expected Reimbursement for Capital Cost of Spent Nuclear Fuel Dry Cask Storage
|
|
—
|
|
|
2.1
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
4,120
|
|
|
4,055
|
|
|
11,034
|
|
|
11,475
|
|
Commercial
|
4,067
|
|
|
3,971
|
|
|
11,072
|
|
|
11,146
|
|
Industrial
|
3,689
|
|
|
3,688
|
|
|
10,936
|
|
|
11,066
|
|
Miscellaneous
|
26
|
|
|
27
|
|
|
83
|
|
|
84
|
|
Total Retail (a)(b)
|
11,902
|
|
|
11,741
|
|
|
33,125
|
|
|
33,771
|
|
|
|
|
|
|
|
|
|
||||
Wholesale (c)
|
453
|
|
|
634
|
|
|
1,531
|
|
|
1,835
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
12,355
|
|
|
12,375
|
|
|
34,656
|
|
|
35,606
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Represents energy delivered to distribution customers.
|
(c)
|
Primarily Ohio’s contractually obligated purchases of OVEC power sold to PJM.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
September 30,
|
|
September 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(in degree days)
|
||||||||||
Actual – Heating (a)
|
|
—
|
|
|
—
|
|
|
2,006
|
|
|
2,158
|
|
Normal – Heating (b)
|
|
6
|
|
|
6
|
|
|
2,072
|
|
|
2,076
|
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
|
872
|
|
|
864
|
|
|
1,176
|
|
|
1,322
|
|
Normal – Cooling (b)
|
|
672
|
|
|
670
|
|
|
973
|
|
|
964
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Cooling degree days are calculated on a 65 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
88.7
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
(2.9
|
)
|
|
Margins from Off-system Sales
|
|
(12.2
|
)
|
|
Transmission Revenues
|
|
0.5
|
|
|
Other Revenues
|
|
1.7
|
|
|
Total Change in Gross Margin
|
|
(12.9
|
)
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
23.7
|
|
|
Depreciation and Amortization
|
|
13.0
|
|
|
Taxes Other Than Income Taxes
|
|
(5.1
|
)
|
|
Carrying Costs Income
|
|
0.1
|
|
|
Allowance for Equity Funds Used During Construction
|
|
2.8
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.1
|
)
|
|
Interest Expense
|
|
(1.8
|
)
|
|
Total Change in Expenses and Other
|
|
32.6
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(39.3
|
)
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
69.1
|
|
•
|
Retail Margins decreased $3 million primarily due to the following:
|
•
|
A $28 million net decrease in Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below.
|
•
|
A $13 million decrease in Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below.
|
•
|
An $8 million net decrease in margin for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019.
|
•
|
A $6 million decrease in revenues associated with a vegetation management rider. This decrease was offset in Other Operation and Maintenance expenses below.
|
•
|
A $6 million net decrease in margin for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019.
|
•
|
A $27 million net increase primarily due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $12 million increase due to the recovery of higher current year losses from a power contract with OVEC. This increase was offset in Margins from Off-system Sales below.
|
•
|
A $9 million increase in revenues associated with smart grid riders. This increase was partially offset in other expense items below.
|
•
|
A $4 million increase in rider revenues associated with the DIR. This decrease was partially offset in other expense items below.
|
•
|
A $3 million increase in Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset in Other Operation and Maintenance expenses below.
|
•
|
Margins from Off-system Sales decreased $12 million primarily due to higher current year losses from a power contract with OVEC and lower deferrals as a result of the OVEC PPA rider. This decrease was offset in Retail Margins above.
|
•
|
Other Operation and Maintenance expenses decreased $24 million primarily due to the following:
|
•
|
A $26 million decrease in recoverable PJM expenses. This decrease was offset in Gross Margin above.
|
•
|
A $5 million decrease in recoverable distribution expenses related to vegetation management. This decrease was partially offset in Retail Margins above.
|
•
|
A $4 million decrease due to higher charitable contributions in 2018.
|
•
|
A $13 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
•
|
Depreciation and Amortization expenses decreased $13 million primarily due to the following:
|
•
|
An $8 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider which ended in the second quarter of 2019. This decrease was offset in Retail Margins above.
|
•
|
A $6 million decrease in recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
•
|
A $4 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
•
|
Taxes Other Than Income Taxes increased $5 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates.
|
•
|
Income Tax Expense (Benefit) increased $39 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above.
|
Reconciliation of Nine Months Ended September 30, 2018 to Nine Months Ended September 30, 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|
||
Nine Months Ended September 30, 2018
|
|
$
|
237.1
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins
|
|
9.2
|
|
|
Margins from Off-system Sales
|
|
(20.8
|
)
|
|
Transmission Revenues
|
|
5.9
|
|
|
Other Revenues
|
|
6.0
|
|
|
Total Change in Gross Margin
|
|
0.3
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
28.7
|
|
|
Depreciation and Amortization
|
|
23.5
|
|
|
Taxes Other Than Income Taxes
|
|
(15.9
|
)
|
|
Interest Income
|
|
0.1
|
|
|
Carrying Costs Income
|
|
(0.8
|
)
|
|
Allowance for Equity Funds Used During Construction
|
|
6.3
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.6
|
)
|
|
Interest Expense
|
|
(1.5
|
)
|
|
Total Change in Expenses and Other
|
|
39.8
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(29.5
|
)
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|
$
|
247.7
|
|
•
|
Retail Margins increased $9 million primarily due to the following:
|
•
|
A $58 million increase due to a reversal of a regulatory provision.
|
•
|
A $33 million net increase due to 2018 adjustments to the distribution decoupling under-recovery balance as a result of the 2018 Ohio Tax Reform settlement and changes in tax riders. This increase was partially offset in Income Tax Expense (Benefit) below.
|
•
|
A $31 million increase in revenues associated with smart grid riders. This increase was partially offset in other expense items below.
|
•
|
A $21 million increase due to the recovery of higher current year losses from a power contract with OVEC. This increase was offset in Margins from Off-system Sales below.
|
•
|
A $9 million increase in Energy Efficiency/Peak Demand Reduction rider revenues. This increase was offset in Other Operation and Maintenance expenses below.
|
•
|
A $71 million net decrease in Basic Transmission Cost Rider revenues and recoverable PJM expenses. This decrease was partially offset in Other Operation and Maintenance expenses below.
|
•
|
An $18 million decrease in revenues associated with a vegetation management rider. This decrease was offset in Other Operation and Maintenance expenses below.
|
•
|
A $16 million net decrease in margin for the Phase-In-Recovery Rider including associated amortizations which ended in the first quarter of 2019.
|
•
|
A $13 million decrease in Deferred Asset Phase-In-Recovery Rider revenues which ended in the second quarter of 2019. This decrease was offset in Depreciation and Amortization expenses below.
|
•
|
A $12 million net decrease in margin for the Rate Stability Rider including associated amortizations which ended in the third quarter of 2019.
|
•
|
An $8 million decrease in usage primarily in the residential and commercial classes.
|
•
|
A $4 million decrease in rider revenues associated with the DIR. This decrease was partially offset in other expense items below.
|
•
|
Margins from Off-system Sales decreased $21 million primarily due to higher current year losses from a power contract with OVEC as a result of the OVEC PPA rider. This decrease was offset in Retail Margins above.
|
•
|
Transmission Revenues increased $6 million primarily due to 2018 provisions for refunds, partially offset by the annual PJM Transmission formula rate true-up.
|
•
|
Other Revenues increased $6 million primarily due to distribution connection fees and pole attachment revenues.
|
•
|
Other Operation and Maintenance expenses decreased $29 million primarily due to the following:
|
•
|
A $78 million decrease in recoverable PJM expenses. This decrease was offset in Gross Margin above.
|
•
|
A $10 million decrease in recoverable distribution expenses related to vegetation management. This decrease was partially offset in Retail Margins above.
|
•
|
A $57 million increase in PJM expenses primarily related to the annual formula rate true-up.
|
•
|
Depreciation and Amortization expenses decreased $24 million primarily due to the following:
|
•
|
A $30 million decrease in recoverable DIR depreciation expense. This decrease was partially offset in Retail Margins above.
|
•
|
An $11 million decrease in amortizations associated with the Deferred Asset Phase-In-Recovery Rider which ended in the second quarter of 2019. This decrease was offset in Retail Margins above.
|
•
|
A $17 million increase in depreciation expense due to an increase in the depreciable base of transmission and distribution assets.
|
•
|
Taxes Other Than Income Taxes increased $16 million primarily due to an increase in property taxes driven by additional investments in transmission and distribution assets and higher tax rates.
|
•
|
Allowance for Equity Funds Used During Construction increased $6 million primarily due to adjustments that resulted from 2019 FERC audit findings.
|
•
|
Income Tax Expense (Benefit) increased $30 million primarily due to a one-time recognition of increased amortization of Excess ADIT not subject to normalization requirements as a result of the 2018 Ohio Tax Reform Settlement. This increase was partially offset in Retail Margins above.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
Electricity, Transmission and Distribution
|
|
$
|
698.6
|
|
|
$
|
772.6
|
|
|
$
|
2,127.4
|
|
|
$
|
2,294.8
|
|
Sales to AEP Affiliates
|
|
9.0
|
|
|
3.3
|
|
|
18.2
|
|
|
17.9
|
|
||||
Other Revenues
|
|
3.0
|
|
|
2.4
|
|
|
8.4
|
|
|
5.3
|
|
||||
TOTAL REVENUES
|
|
710.6
|
|
|
778.3
|
|
|
2,154.0
|
|
|
2,318.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchased Electricity for Resale
|
|
158.3
|
|
|
166.3
|
|
|
454.0
|
|
|
534.7
|
|
||||
Purchased Electricity from AEP Affiliates
|
|
40.6
|
|
|
39.3
|
|
|
120.4
|
|
|
97.4
|
|
||||
Amortization of Generation Deferrals
|
|
8.8
|
|
|
56.9
|
|
|
65.3
|
|
|
171.9
|
|
||||
Other Operation
|
|
194.9
|
|
|
215.2
|
|
|
565.7
|
|
|
586.4
|
|
||||
Maintenance
|
|
40.0
|
|
|
43.4
|
|
|
106.7
|
|
|
114.7
|
|
||||
Depreciation and Amortization
|
|
57.4
|
|
|
70.4
|
|
|
176.8
|
|
|
200.3
|
|
||||
Taxes Other Than Income Taxes
|
|
112.0
|
|
|
106.9
|
|
|
326.9
|
|
|
311.0
|
|
||||
TOTAL EXPENSES
|
|
612.0
|
|
|
698.4
|
|
|
1,815.8
|
|
|
2,016.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
98.6
|
|
|
79.9
|
|
|
338.2
|
|
|
301.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Income
|
|
0.8
|
|
|
0.8
|
|
|
2.7
|
|
|
2.6
|
|
||||
Carrying Costs Income
|
|
0.3
|
|
|
0.2
|
|
|
0.7
|
|
|
1.5
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
4.8
|
|
|
2.0
|
|
|
14.1
|
|
|
7.8
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
3.7
|
|
|
3.8
|
|
|
11.0
|
|
|
11.6
|
|
||||
Interest Expense
|
|
(27.9
|
)
|
|
(26.1
|
)
|
|
(78.1
|
)
|
|
(76.6
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
|
|
80.3
|
|
|
60.6
|
|
|
288.6
|
|
|
248.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense (Benefit)
|
|
11.2
|
|
|
(28.1
|
)
|
|
40.9
|
|
|
11.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
69.1
|
|
|
$
|
88.7
|
|
|
$
|
247.7
|
|
|
$
|
237.1
|
|
The common stock of OPCo is wholly-owned by Parent.
|
||||
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
69.1
|
|
|
$
|
88.7
|
|
|
$
|
247.7
|
|
|
$
|
237.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash Flow Hedges, Net of Tax of $(0.1) and $(0.1) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.3) and $(0.3) for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
68.8
|
|
|
$
|
88.3
|
|
|
$
|
246.7
|
|
|
$
|
236.1
|
|
|
|
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock Dividends
|
|
|
|
|
|
(112.5
|
)
|
|
|
|
(112.5
|
)
|
||||||||
Net Income
|
|
|
|
|
|
88.7
|
|
|
|
|
88.7
|
|
||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018
|
|
$
|
321.2
|
|
|
$
|
838.8
|
|
|
$
|
1,048.0
|
|
|
$
|
1.3
|
|
|
$
|
2,209.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income
|
|
|
|
|
|
69.1
|
|
|
|
|
69.1
|
|
||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019
|
|
$
|
321.2
|
|
|
$
|
838.8
|
|
|
$
|
1,299.1
|
|
|
$
|
—
|
|
|
$
|
2,459.1
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
4.7
|
|
|
$
|
4.9
|
|
Restricted Cash for Securitized Funding
|
|
—
|
|
|
27.6
|
|
||
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
35.4
|
|
|
111.1
|
|
||
Affiliated Companies
|
|
56.2
|
|
|
70.8
|
|
||
Accrued Unbilled Revenues
|
|
26.5
|
|
|
21.4
|
|
||
Miscellaneous
|
|
0.3
|
|
|
0.3
|
|
||
Allowance for Uncollectible Accounts
|
|
(2.1
|
)
|
|
(1.0
|
)
|
||
Total Accounts Receivable
|
|
116.3
|
|
|
202.6
|
|
||
Materials and Supplies
|
|
48.5
|
|
|
42.9
|
|
||
Renewable Energy Credits
|
|
41.5
|
|
|
25.9
|
|
||
Prepayments and Other Current Assets
|
|
19.8
|
|
|
15.7
|
|
||
TOTAL CURRENT ASSETS
|
|
230.8
|
|
|
319.6
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
Electric:
|
|
|
|
|
||||
Transmission
|
|
2,613.0
|
|
|
2,544.3
|
|
||
Distribution
|
|
5,192.8
|
|
|
4,942.3
|
|
||
Other Property, Plant and Equipment
|
|
662.3
|
|
|
574.8
|
|
||
Construction Work in Progress
|
|
485.3
|
|
|
432.1
|
|
||
Total Property, Plant and Equipment
|
|
8,953.4
|
|
|
8,493.5
|
|
||
Accumulated Depreciation and Amortization
|
|
2,256.1
|
|
|
2,218.6
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
6,697.3
|
|
|
6,274.9
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Regulatory Assets
|
|
372.2
|
|
|
387.5
|
|
||
Securitized Assets
|
|
—
|
|
|
12.9
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
320.3
|
|
|
441.0
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
692.5
|
|
|
841.4
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
7,620.6
|
|
|
$
|
7,435.9
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Advances from Affiliates
|
|
$
|
17.6
|
|
|
$
|
114.1
|
|
Accounts Payable:
|
|
|
|
|
|
|
||
General
|
|
203.1
|
|
|
211.9
|
|
||
Affiliated Companies
|
|
100.2
|
|
|
102.9
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
(September 30, 2019 and December 31, 2018 Amounts Include $0 and $47.8, Respectively, Related to Ohio Phase-in-Recovery Funding) |
|
0.1
|
|
|
47.9
|
|
||
Risk Management Liabilities
|
|
7.2
|
|
|
5.8
|
|
||
Customer Deposits
|
|
88.2
|
|
|
113.1
|
|
||
Accrued Taxes
|
|
294.3
|
|
|
537.8
|
|
||
Accrued Interest
|
|
44.7
|
|
|
31.4
|
|
||
Obligations Under Operating Leases
|
|
12.8
|
|
|
—
|
|
||
Other Current Liabilities
|
|
99.4
|
|
|
182.8
|
|
||
TOTAL CURRENT LIABILITIES
|
|
867.6
|
|
|
1,347.7
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
|
|
2,113.8
|
|
|
1,668.7
|
|
||
Long-term Risk Management Liabilities
|
|
105.7
|
|
|
93.8
|
|
||
Deferred Income Taxes
|
|
805.0
|
|
|
763.3
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
1,143.6
|
|
|
1,221.2
|
|
||
Obligations Under Operating Leases
|
|
75.9
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
49.9
|
|
|
43.8
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
4,293.9
|
|
|
3,790.8
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
5,161.5
|
|
|
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
|
|
1,299.1
|
|
|
1,136.4
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
1.0
|
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,459.1
|
|
|
2,297.4
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
7,620.6
|
|
|
$
|
7,435.9
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
247.7
|
|
|
$
|
237.1
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
Depreciation and Amortization
|
|
176.8
|
|
|
200.3
|
|
||
Amortization of Generation Deferrals
|
|
65.3
|
|
|
171.9
|
|
||
Deferred Income Taxes
|
|
16.8
|
|
|
(71.9
|
)
|
||
Allowance for Equity Funds Used During Construction
|
|
(14.1
|
)
|
|
(7.8
|
)
|
||
Mark-to-Market of Risk Management Contracts
|
|
13.3
|
|
|
(37.1
|
)
|
||
Property Taxes
|
|
197.7
|
|
|
191.1
|
|
||
Refund of Global Settlement
|
|
(12.4
|
)
|
|
(5.5
|
)
|
||
Reversal of Regulatory Provision
|
|
(56.2
|
)
|
|
—
|
|
||
Change in Regulatory Assets
|
|
(28.1
|
)
|
|
180.9
|
|
||
Change in Other Noncurrent Assets
|
|
(19.4
|
)
|
|
0.8
|
|
||
Change in Other Noncurrent Liabilities
|
|
(51.1
|
)
|
|
62.5
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
Accounts Receivable, Net
|
|
90.0
|
|
|
21.3
|
|
||
Materials and Supplies
|
|
(9.6
|
)
|
|
(3.7
|
)
|
||
Accounts Payable
|
|
(12.3
|
)
|
|
(31.8
|
)
|
||
Accrued Taxes, Net
|
|
(245.9
|
)
|
|
(210.6
|
)
|
||
Other Current Assets
|
|
(9.0
|
)
|
|
7.6
|
|
||
Other Current Liabilities
|
|
(40.0
|
)
|
|
(4.3
|
)
|
||
Net Cash Flows from Operating Activities
|
|
309.5
|
|
|
700.8
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Construction Expenditures
|
|
(570.6
|
)
|
|
(538.5
|
)
|
||
Other Investing Activities
|
|
20.0
|
|
|
15.5
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(550.6
|
)
|
|
(523.0
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Issuance of Long-term Debt – Nonaffiliated
|
|
444.3
|
|
|
392.8
|
|
||
Change in Advances from Affiliates, Net
|
|
(96.5
|
)
|
|
155.1
|
|
||
Retirement of Long-term Debt – Nonaffiliated
|
|
(48.0
|
)
|
|
(397.0
|
)
|
||
Principal Payments for Finance Lease Obligations
|
|
(2.6
|
)
|
|
(2.9
|
)
|
||
Dividends Paid on Common Stock
|
|
(85.0
|
)
|
|
(337.5
|
)
|
||
Other Financing Activities
|
|
1.1
|
|
|
0.7
|
|
||
Net Cash Flows from (Used for) Financing Activities
|
|
213.3
|
|
|
(188.8
|
)
|
||
|
|
|
|
|
||||
Net Decrease in Cash, Cash Equivalents and Restricted Cash for Securitized Funding
|
|
(27.8
|
)
|
|
(11.0
|
)
|
||
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
|
|
$
|
4.7
|
|
|
$
|
18.7
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
61.3
|
|
|
$
|
67.3
|
|
Net Cash Paid for Income Taxes
|
|
25.7
|
|
|
54.1
|
|
||
Noncash Acquisitions Under Finance Leases
|
|
8.6
|
|
|
3.0
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
99.9
|
|
|
66.0
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
2,172
|
|
|
2,005
|
|
|
4,981
|
|
|
5,133
|
|
Commercial
|
1,497
|
|
|
1,433
|
|
|
3,818
|
|
|
3,864
|
|
Industrial
|
1,642
|
|
|
1,604
|
|
|
4,665
|
|
|
4,559
|
|
Miscellaneous
|
378
|
|
|
362
|
|
|
950
|
|
|
973
|
|
Total Retail (a)
|
5,689
|
|
|
5,404
|
|
|
14,414
|
|
|
14,529
|
|
|
|
|
|
|
|
|
|
||||
Wholesale
|
224
|
|
|
182
|
|
|
617
|
|
|
544
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
5,913
|
|
|
5,586
|
|
|
15,031
|
|
|
15,073
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
1,199
|
|
|
1,161
|
|
Normal – Heating (b)
|
1
|
|
|
1
|
|
|
1,077
|
|
|
1,082
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
1,593
|
|
|
1,433
|
|
|
2,206
|
|
|
2,352
|
|
Normal – Cooling (b)
|
1,397
|
|
|
1,396
|
|
|
2,072
|
|
|
2,063
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Cooling degree days are calculated on a 65 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Net Income
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
60.4
|
|
|
|
|
||
Changes in Gross Margin:
|
|
|
||
Retail Margins (a)
|
|
22.0
|
|
|
Margins from Off-system Sales
|
|
0.8
|
|
|
Transmission Revenues
|
|
(3.7
|
)
|
|
Total Change in Gross Margin
|
|
19.1
|
|
|
|
|
|
||
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
19.5
|
|
|
Depreciation and Amortization
|
|
3.2
|
|
|
Taxes Other Than Income Taxes
|
|
(0.3
|
)
|
|
Other Income (Expense)
|
|
1.4
|
|
|
Interest Expense
|
|
0.3
|
|
|
Total Change in Expenses and Other
|
|
24.1
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
(3.3
|
)
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
100.3
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
•
|
Retail Margins increased $22 million primarily due to the following:
|
•
|
A $14 million increase due to new base rates implemented in April 2019.
|
•
|
A $9 million increase in weather-related usage due to an 11% increase in cooling degree days.
|
•
|
A $5 million increase in weather-normalized margins.
|
•
|
A $7 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense below.
|
•
|
Transmission Revenues decreased $4 million primarily due to a decrease in SPP Base Plan Funding revenues.
|
•
|
Other Operation and Maintenance expenses decreased $20 million primarily due the following:
|
•
|
A $9 million decrease in transmission expenses primarily due to decreased SPP transmission services.
|
•
|
A $5 million decrease in Energy Efficiency program costs due to a change in amortizations of costs approved by the OCC. This decrease was offset in Retail Margins above.
|
•
|
A $3 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
•
|
Depreciation and Amortization expenses decreased $3 million primarily due to the refund of Excess ADIT.
|
•
|
Income Tax Expense increased $3 million primarily due to an increase in pretax book income partially offset by an increase in amortization of Excess ADIT. The amortization of Excess ADIT was partially offset in Gross Margin above.
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
•
|
Retail Margins increased $2 million primarily due to the following:
|
•
|
A $35 million increase due to new base rates implemented in April 2019 and March 2018.
|
•
|
A $13 million decrease due to customer refunds related to Tax Reform. This decrease was partially offset in Income Tax Expense below.
|
•
|
An $11 million decrease in weather-related usage due to a 6% decrease in cooling degree days.
|
•
|
A $10 million decrease in weather-normalized margins.
|
•
|
Transmission Revenues decreased $6 million primarily due to a decrease in SPP Base Plan Funding revenues.
|
•
|
Other Operation and Maintenance expenses decreased $64 million primarily due to the following:
|
•
|
A $31 million decrease in transmission expenses primarily due to decreased SPP transmission services.
|
•
|
A $17 million decrease in Energy Efficiency program costs due to a change in amortizations of costs approved by the OCC. This decrease was offset in Retail Margins above.
|
•
|
A $12 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
•
|
Depreciation and Amortization expenses increased $5 million primarily due to the following:
|
•
|
Income Tax Expense decreased $1 million primarily due to an increase in amortization of Excess ADIT partially offset by an increase in pretax book income. This decrease was partially offset in Gross Margin above.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
Electric Generation, Transmission and Distribution
|
|
$
|
490.5
|
|
|
$
|
479.1
|
|
|
$
|
1,164.3
|
|
|
$
|
1,209.5
|
|
Sales to AEP Affiliates
|
|
1.3
|
|
|
1.1
|
|
|
5.0
|
|
|
3.7
|
|
||||
Other Revenues
|
|
1.2
|
|
|
1.2
|
|
|
4.6
|
|
|
3.3
|
|
||||
TOTAL REVENUES
|
|
493.0
|
|
|
481.4
|
|
|
1,173.9
|
|
|
1,216.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel and Other Consumables Used for Electric Generation
|
|
98.4
|
|
|
104.4
|
|
|
181.2
|
|
|
211.5
|
|
||||
Purchased Electricity for Resale
|
|
115.3
|
|
|
116.8
|
|
|
340.7
|
|
|
352.3
|
|
||||
Other Operation
|
|
87.6
|
|
|
106.3
|
|
|
226.0
|
|
|
286.8
|
|
||||
Maintenance
|
|
21.5
|
|
|
22.3
|
|
|
70.1
|
|
|
73.2
|
|
||||
Depreciation and Amortization
|
|
39.1
|
|
|
42.3
|
|
|
125.4
|
|
|
120.5
|
|
||||
Taxes Other Than Income Taxes
|
|
11.1
|
|
|
10.8
|
|
|
33.0
|
|
|
32.6
|
|
||||
TOTAL EXPENSES
|
|
373.0
|
|
|
402.9
|
|
|
976.4
|
|
|
1,076.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
120.0
|
|
|
78.5
|
|
|
197.5
|
|
|
139.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Income (Expense)
|
|
1.2
|
|
|
(0.2
|
)
|
|
2.1
|
|
|
(0.3
|
)
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
2.1
|
|
|
2.1
|
|
|
6.3
|
|
|
6.5
|
|
||||
Interest Expense
|
|
(16.1
|
)
|
|
(16.4
|
)
|
|
(50.3
|
)
|
|
(47.4
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
|
107.2
|
|
|
64.0
|
|
|
155.6
|
|
|
98.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense
|
|
6.9
|
|
|
3.6
|
|
|
7.2
|
|
|
8.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
100.3
|
|
|
$
|
60.4
|
|
|
$
|
148.4
|
|
|
$
|
89.8
|
|
The common stock of PSO is wholly-owned by Parent.
|
||||
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
100.3
|
|
|
$
|
60.4
|
|
|
$
|
148.4
|
|
|
$
|
89.8
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE LOSS, NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash Flow Hedges, Net of Tax of $0 and $0 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.2) and $(0.2) for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
(0.7
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
100.1
|
|
|
$
|
60.2
|
|
|
$
|
147.7
|
|
|
$
|
89.1
|
|
|
|
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common Stock Dividends
|
|
|
|
|
|
(12.5
|
)
|
|
|
|
(12.5
|
)
|
||||||||
Net Income
|
|
|
|
|
|
60.4
|
|
|
|
|
60.4
|
|
||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2018
|
|
$
|
157.2
|
|
|
$
|
364.0
|
|
|
$
|
743.8
|
|
|
$
|
2.4
|
|
|
$
|
1,267.4
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income
|
|
|
|
|
|
100.3
|
|
|
|
|
100.3
|
|
||||||||
Other Comprehensive Loss
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||||
TOTAL COMMON SHAREHOLDER’S EQUITY – SEPTEMBER 30, 2019
|
|
$
|
157.2
|
|
|
$
|
364.0
|
|
|
$
|
861.8
|
|
|
$
|
1.4
|
|
|
$
|
1,384.4
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
2.9
|
|
|
$
|
2.0
|
|
Advances to Affiliates
|
|
95.1
|
|
|
—
|
|
||
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
25.2
|
|
|
32.5
|
|
||
Affiliated Companies
|
|
27.3
|
|
|
26.2
|
|
||
Miscellaneous
|
|
4.0
|
|
|
5.7
|
|
||
Allowance for Uncollectible Accounts
|
|
(0.4
|
)
|
|
(0.1
|
)
|
||
Total Accounts Receivable
|
|
56.1
|
|
|
64.3
|
|
||
Fuel
|
|
12.8
|
|
|
12.3
|
|
||
Materials and Supplies
|
|
46.2
|
|
|
44.8
|
|
||
Risk Management Assets
|
|
21.7
|
|
|
10.4
|
|
||
Accrued Tax Benefits
|
|
17.0
|
|
|
14.7
|
|
||
Prepayments and Other Current Assets
|
|
11.5
|
|
|
9.4
|
|
||
TOTAL CURRENT ASSETS
|
|
263.3
|
|
|
157.9
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
Electric:
|
|
|
|
|
||||
Generation
|
|
1,569.9
|
|
|
1,577.0
|
|
||
Transmission
|
|
928.4
|
|
|
892.3
|
|
||
Distribution
|
|
2,650.1
|
|
|
2,572.8
|
|
||
Other Property, Plant and Equipment
|
|
319.6
|
|
|
303.5
|
|
||
Construction Work in Progress
|
|
128.8
|
|
|
94.0
|
|
||
Total Property, Plant and Equipment
|
|
5,596.8
|
|
|
5,439.6
|
|
||
Accumulated Depreciation and Amortization
|
|
1,558.5
|
|
|
1,472.9
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
4,038.3
|
|
|
3,966.7
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Regulatory Assets
|
|
380.7
|
|
|
369.0
|
|
||
Employee Benefits and Pension Assets
|
|
32.6
|
|
|
31.7
|
|
||
Operating Lease Assets
|
|
37.1
|
|
|
—
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
17.2
|
|
|
7.1
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
467.6
|
|
|
407.8
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
4,769.2
|
|
|
$
|
4,532.4
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Advances from Affiliates
|
|
$
|
—
|
|
|
$
|
105.5
|
|
Accounts Payable:
|
|
|
|
|
|
|
||
General
|
|
128.6
|
|
|
126.9
|
|
||
Affiliated Companies
|
|
38.6
|
|
|
47.1
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
138.2
|
|
|
375.5
|
|
||
Risk Management Liabilities
|
|
0.3
|
|
|
1.0
|
|
||
Customer Deposits
|
|
59.0
|
|
|
58.6
|
|
||
Accrued Taxes
|
|
43.7
|
|
|
22.4
|
|
||
Obligations Under Operating Leases
|
|
6.0
|
|
|
—
|
|
||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
69.9
|
|
|
20.1
|
|
||
Other Current Liabilities
|
|
67.7
|
|
|
64.5
|
|
||
TOTAL CURRENT LIABILITIES
|
|
552.0
|
|
|
821.6
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
|
|
1,248.2
|
|
|
911.5
|
|
||
Deferred Income Taxes
|
|
617.5
|
|
|
607.8
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
858.9
|
|
|
864.7
|
|
||
Asset Retirement Obligations
|
|
50.9
|
|
|
46.3
|
|
||
Obligations Under Operating Leases
|
|
31.2
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
26.1
|
|
|
32.5
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
2,832.8
|
|
|
2,462.8
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
3,384.8
|
|
|
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
|
|
861.8
|
|
|
724.7
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
1.4
|
|
|
2.1
|
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
1,384.4
|
|
|
1,248.0
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY
|
|
$
|
4,769.2
|
|
|
$
|
4,532.4
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
148.4
|
|
|
$
|
89.8
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||
Depreciation and Amortization
|
|
125.4
|
|
|
120.5
|
|
||
Deferred Income Taxes
|
|
(9.7
|
)
|
|
(13.4
|
)
|
||
Allowance for Equity Funds Used During Construction
|
|
(1.5
|
)
|
|
0.3
|
|
||
Mark-to-Market of Risk Management Contracts
|
|
(12.0
|
)
|
|
(11.5
|
)
|
||
Property Taxes
|
|
(9.6
|
)
|
|
(9.6
|
)
|
||
Deferred Fuel Over/Under-Recovery, Net
|
|
49.8
|
|
|
73.3
|
|
||
Change in Other Noncurrent Assets
|
|
4.6
|
|
|
6.9
|
|
||
Change in Other Noncurrent Liabilities
|
|
(0.2
|
)
|
|
14.6
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
|
|
||
Accounts Receivable, Net
|
|
9.1
|
|
|
(3.4
|
)
|
||
Fuel, Materials and Supplies
|
|
(1.9
|
)
|
|
(1.5
|
)
|
||
Accounts Payable
|
|
(5.8
|
)
|
|
6.9
|
|
||
Accrued Taxes, Net
|
|
19.0
|
|
|
38.4
|
|
||
Other Current Assets
|
|
(2.4
|
)
|
|
0.3
|
|
||
Other Current Liabilities
|
|
1.1
|
|
|
15.1
|
|
||
Net Cash Flows from Operating Activities
|
|
314.3
|
|
|
326.7
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Construction Expenditures
|
|
(198.7
|
)
|
|
(162.8
|
)
|
||
Change in Advances to Affiliates, Net
|
|
(95.1
|
)
|
|
—
|
|
||
Other Investing Activities
|
|
2.1
|
|
|
3.9
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(291.7
|
)
|
|
(158.9
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Issuance of Long-term Debt – Nonaffiliated
|
|
349.8
|
|
|
—
|
|
||
Change in Advances from Affiliates, Net
|
|
(105.5
|
)
|
|
(127.6
|
)
|
||
Retirement of Long-term Debt – Nonaffiliated
|
|
(250.4
|
)
|
|
(0.3
|
)
|
||
Make Whole Premium on Extinguishment of Long-term Debt
|
|
(3.0
|
)
|
|
—
|
|
||
Principal Payments for Finance Lease Obligations
|
|
(2.2
|
)
|
|
(2.5
|
)
|
||
Dividends Paid on Common Stock
|
|
(11.3
|
)
|
|
(37.5
|
)
|
||
Other Financing Activities
|
|
0.9
|
|
|
0.4
|
|
||
Net Cash Flows Used for Financing Activities
|
|
(21.7
|
)
|
|
(167.5
|
)
|
||
|
|
|
|
|
||||
Net Increase in Cash and Cash Equivalents
|
|
0.9
|
|
|
0.3
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
|
2.0
|
|
|
1.6
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
2.9
|
|
|
$
|
1.9
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
46.5
|
|
|
$
|
42.0
|
|
Net Cash Paid for Income Taxes
|
|
16.0
|
|
|
1.6
|
|
||
Noncash Acquisitions Under Finance Leases
|
|
3.4
|
|
|
2.3
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
31.5
|
|
|
24.3
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in millions of KWhs)
|
||||||||||
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
2,071
|
|
|
1,992
|
|
|
4,896
|
|
|
5,156
|
|
Commercial
|
1,746
|
|
|
1,675
|
|
|
4,430
|
|
|
4,548
|
|
Industrial
|
1,414
|
|
|
1,366
|
|
|
4,020
|
|
|
4,033
|
|
Miscellaneous
|
19
|
|
|
19
|
|
|
59
|
|
|
59
|
|
Total Retail (a)
|
5,250
|
|
|
5,052
|
|
|
13,405
|
|
|
13,796
|
|
|
|
|
|
|
|
|
|
||||
Wholesale
|
1,831
|
|
|
1,881
|
|
|
5,317
|
|
|
5,352
|
|
|
|
|
|
|
|
|
|
||||
Total KWhs
|
7,081
|
|
|
6,933
|
|
|
18,722
|
|
|
19,148
|
|
(a)
|
2018 KWhs have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail KWhs. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in degree days)
|
||||||||||
Actual – Heating (a)
|
—
|
|
|
—
|
|
|
732
|
|
|
784
|
|
Normal – Heating (b)
|
1
|
|
|
1
|
|
|
725
|
|
|
733
|
|
|
|
|
|
|
|
|
|
||||
Actual – Cooling (c)
|
1,552
|
|
|
1,453
|
|
|
2,263
|
|
|
2,408
|
|
Normal – Cooling (b)
|
1,408
|
|
|
1,408
|
|
|
2,187
|
|
|
2,179
|
|
(a)
|
Heating degree days are calculated on a 55 degree temperature base.
|
(b)
|
Normal Heating/Cooling represents the thirty-year average of degree days.
|
(c)
|
Cooling degree days are calculated on a 65 degree temperature base.
|
Reconciliation of Third Quarter of 2018 to Third Quarter of 2019
|
||||
Earnings Attributable to SWEPCo Common Shareholder
|
||||
(in millions)
|
||||
|
|
|
||
Third Quarter of 2018
|
|
$
|
88.2
|
|
|
|
|
|
|
Changes in Gross Margin:
|
|
|
|
|
Retail Margins (a)
|
|
10.7
|
|
|
Off-system Sales
|
|
(0.2
|
)
|
|
Transmission Revenues
|
|
(4.8
|
)
|
|
Other Revenues
|
|
(0.4
|
)
|
|
Total Change in Gross Margin
|
|
5.3
|
|
|
|
|
|
|
|
Changes in Expenses and Other:
|
|
|
|
|
Other Operation and Maintenance
|
|
4.9
|
|
|
Depreciation and Amortization
|
|
(3.3
|
)
|
|
Taxes Other Than Income Taxes
|
|
0.7
|
|
|
Interest Income
|
|
(0.5
|
)
|
|
Allowance for Equity Funds Used During Construction
|
|
1.0
|
|
|
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
(0.2
|
)
|
|
Interest Expense
|
|
3.5
|
|
|
Total Change in Expenses and Other
|
|
6.1
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
10.3
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
0.6
|
|
|
|
|
|
|
|
Third Quarter of 2019
|
|
$
|
110.5
|
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
•
|
Retail Margins increased $11 million primarily due to the following:
|
•
|
A $6 million increase in weather-normalized margins.
|
•
|
A $5 million increase in weather-related usage primarily due to a 7% increase in cooling degree days.
|
•
|
Transmission Revenues decreased $5 million primarily due to a decrease in SPP Base Plan Funding revenues and a decrease in nonaffiliated transmission services.
|
•
|
Other Operation and Maintenance expenses decreased $5 million primarily due to Wind Catcher Project expenses incurred in 2018.
|
•
|
Depreciation and Amortization expenses increased $3 million primarily due to a higher depreciable base.
|
•
|
Interest Expense decreased $4 million primarily due to lower interest rates on outstanding long-term debt.
|
•
|
Income Tax Expense (Benefit) decreased $10 million primarily due to an increase in amortization of Excess ADIT not subject to normalization requirements. This decrease was partially offset in Gross Margin above.
|
(a)
|
Includes firm wholesale sales to municipals and cooperatives.
|
•
|
Retail Margins decreased $18 million primarily due to the following:
|
•
|
A $14 million decrease in weather-related usage primarily due to a 6% decrease in cooling degree days and a 7% decrease in heating degree days.
|
•
|
A $10 million decrease in weather-normalized margins.
|
•
|
A $7 million increase primarily due to rider and base rate revenue increases in Louisiana. This increase was offset in other expense items below.
|
•
|
Transmission Revenues decreased $36 million primarily due to the following:
|
•
|
A $40 million decrease in the annual SPP formula rate true-up.
|
•
|
A $7 million decrease primarily due to a reduction in SPP Base Plan Funding revenues.
|
•
|
An $11 million increase due to a provision for refund recorded in 2018 related to certain transmission assets that management believes should not have been included in the SPP formula rate.
|
•
|
Other Operation and Maintenance expenses decreased $48 million primarily due to the following:
|
•
|
A $28 million decrease due to Wind Catcher Project expenses incurred in 2018.
|
•
|
A $24 million decrease in affiliated SPP transmission expenses primarily due to the annual formula rate true-up.
|
•
|
A $7 million increase in overhead line expenses primarily related to storm restoration.
|
•
|
Depreciation and Amortization expenses increased $11 million primarily due to higher depreciation rates implemented in the third quarter of 2018 and a higher depreciable base.
|
•
|
Interest Expense decreased $6 million primarily due to lower interest rates on outstanding long-term debt.
|
•
|
Income Tax Expense (Benefit) decreased $18 million primarily due to an increase in amortization of Excess ADIT not subject to normalization requirements and a decrease in pretax book income. This decrease was partially offset in Gross Margin above.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
|||||||
Electric Generation, Transmission and Distribution
|
|
$
|
536.5
|
|
|
$
|
526.0
|
|
|
$
|
1,344.8
|
|
|
$
|
1,390.4
|
|
Sales to AEP Affiliates
|
|
8.8
|
|
|
8.7
|
|
|
21.6
|
|
|
20.2
|
|
||||
Provision for Refund – Affiliated
|
|
(0.1
|
)
|
|
—
|
|
|
(25.3
|
)
|
|
—
|
|
||||
Other Revenues
|
|
0.3
|
|
|
0.6
|
|
|
1.0
|
|
|
1.2
|
|
||||
TOTAL REVENUES
|
|
545.5
|
|
|
535.3
|
|
|
1,342.1
|
|
|
1,411.8
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuel and Other Consumables Used for Electric Generation
|
|
148.8
|
|
|
152.1
|
|
|
400.2
|
|
|
393.4
|
|
||||
Purchased Electricity for Resale
|
|
44.8
|
|
|
36.6
|
|
|
110.5
|
|
|
132.7
|
|
||||
Other Operation
|
|
91.9
|
|
|
99.1
|
|
|
242.4
|
|
|
292.0
|
|
||||
Maintenance
|
|
35.9
|
|
|
33.6
|
|
|
104.1
|
|
|
102.2
|
|
||||
Depreciation and Amortization
|
|
63.2
|
|
|
59.9
|
|
|
187.1
|
|
|
175.9
|
|
||||
Taxes Other Than Income Taxes
|
|
26.2
|
|
|
26.9
|
|
|
76.0
|
|
|
76.4
|
|
||||
TOTAL EXPENSES
|
|
410.8
|
|
|
408.2
|
|
|
1,120.3
|
|
|
1,172.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
|
134.7
|
|
|
127.1
|
|
|
221.8
|
|
|
239.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest Income
|
|
0.6
|
|
|
1.1
|
|
|
2.0
|
|
|
3.5
|
|
||||
Allowance for Equity Funds Used During Construction
|
|
1.6
|
|
|
0.6
|
|
|
4.5
|
|
|
3.8
|
|
||||
Non-Service Cost Components of Net Periodic Benefit Cost
|
|
2.1
|
|
|
2.3
|
|
|
6.4
|
|
|
6.9
|
|
||||
Interest Expense
|
|
(29.2
|
)
|
|
(32.7
|
)
|
|
(89.4
|
)
|
|
(95.8
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY EARNINGS
|
|
109.8
|
|
|
98.4
|
|
|
145.3
|
|
|
157.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income Tax Expense (Benefit)
|
|
(0.7
|
)
|
|
9.6
|
|
|
—
|
|
|
17.9
|
|
||||
Equity Earnings of Unconsolidated Subsidiary
|
|
0.8
|
|
|
0.8
|
|
|
2.3
|
|
|
2.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
111.3
|
|
|
89.6
|
|
|
147.6
|
|
|
141.7
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to Noncontrolling Interest
|
|
0.8
|
|
|
1.4
|
|
|
3.1
|
|
|
4.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER
|
|
$
|
110.5
|
|
|
$
|
88.2
|
|
|
$
|
144.5
|
|
|
$
|
137.6
|
|
The common stock of SWEPCo is wholly-owned by Parent.
|
||||
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
111.3
|
|
|
$
|
89.6
|
|
|
$
|
147.6
|
|
|
$
|
141.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash Flow Hedges, Net of Tax of $0.1 and $0.8 for the Three Months Ended September 30, 2019 and 2018, Respectively, and $0.3 and $1 for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
0.3
|
|
|
2.7
|
|
|
1.1
|
|
|
3.6
|
|
||||
Amortization of Pension and OPEB Deferred Costs, Net of Tax of $0 and $(0.1) for the Three Months Ended September 30, 2019 and 2018, Respectively, and $(0.2) and $(0.3) for the Nine Months Ended September 30, 2019 and 2018, Respectively
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.9
|
)
|
|
(1.0
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME
|
|
—
|
|
|
2.4
|
|
|
0.2
|
|
|
2.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
|
111.3
|
|
|
92.0
|
|
|
147.8
|
|
|
144.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Income Attributable to Noncontrolling Interest
|
|
0.8
|
|
|
1.4
|
|
|
3.1
|
|
|
4.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SWEPCo COMMON SHAREHOLDER
|
|
$
|
110.5
|
|
|
$
|
90.6
|
|
|
$
|
144.7
|
|
|
$
|
140.2
|
|
|
SWEPCo Common Shareholder
|
|
|
|
|
||||||||||||||||||
|
Common
Stock |
|
Paid-in
Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Noncontrolling
Interest |
|
Total
|
||||||||||||
TOTAL EQUITY – DECEMBER 31, 2017
|
$
|
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
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common Stock Dividends
|
|
|
|
|
(20.0
|
)
|
|
|
|
|
|
(20.0
|
)
|
||||||||||
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||||||||
Net Income
|
|
|
|
|
88.2
|
|
|
|
|
1.4
|
|
|
89.6
|
|
|||||||||
Other Comprehensive Income
|
|
|
|
|
|
|
2.4
|
|
|
|
|
2.4
|
|
||||||||||
TOTAL EQUITY – SEPTEMBER 30, 2018
|
$
|
135.7
|
|
|
$
|
676.6
|
|
|
$
|
1,503.8
|
|
|
$
|
(2.3
|
)
|
|
$
|
0.5
|
|
|
$
|
2,314.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common Stock Dividends – Nonaffiliated
|
|
|
|
|
|
|
|
|
(1.1
|
)
|
|
(1.1
|
)
|
||||||||||
Net Income
|
|
|
|
|
110.5
|
|
|
|
|
0.8
|
|
|
111.3
|
|
|||||||||
TOTAL EQUITY – SEPTEMBER 30, 2019
|
$
|
135.7
|
|
|
$
|
676.6
|
|
|
$
|
1,615.4
|
|
|
$
|
(5.2
|
)
|
|
$
|
0.1
|
|
|
$
|
2,422.6
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and Cash Equivalents
(September 30, 2019 and December 31, 2018 Amounts Include $18.2 and $22, Respectively, Related to Sabine) |
|
$
|
21.4
|
|
|
$
|
24.5
|
|
Advances to Affiliates
|
|
8.5
|
|
|
83.4
|
|
||
Accounts Receivable:
|
|
|
|
|
||||
Customers
|
|
20.6
|
|
|
24.5
|
|
||
Affiliated Companies
|
|
56.8
|
|
|
28.8
|
|
||
Miscellaneous
|
|
16.6
|
|
|
20.2
|
|
||
Allowance for Uncollectible Accounts
|
|
(1.4
|
)
|
|
(0.7
|
)
|
||
Total Accounts Receivable
|
|
92.6
|
|
|
72.8
|
|
||
Fuel
(September 30, 2019 and December 31, 2018 Amounts Include $51.6 and $35.7, Respectively, Related to Sabine) |
|
135.9
|
|
|
120.5
|
|
||
Materials and Supplies
|
|
69.8
|
|
|
67.5
|
|
||
Risk Management Assets
|
|
9.4
|
|
|
4.8
|
|
||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
11.1
|
|
|
18.8
|
|
||
Prepayments and Other Current Assets
|
|
24.4
|
|
|
22.2
|
|
||
TOTAL CURRENT ASSETS
|
|
373.1
|
|
|
414.5
|
|
||
|
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
||||
Electric:
|
|
|
|
|
||||
Generation
|
|
4,676.1
|
|
|
4,672.6
|
|
||
Transmission
|
|
1,995.9
|
|
|
1,866.9
|
|
||
Distribution
|
|
2,241.1
|
|
|
2,178.6
|
|
||
Other Property, Plant and Equipment
(September 30, 2019 and December 31, 2018 Amounts Include $210.3 and $276.9, Respectively, Related to Sabine) |
|
703.2
|
|
|
762.7
|
|
||
Construction Work in Progress
|
|
235.0
|
|
|
199.3
|
|
||
Total Property, Plant and Equipment
|
|
9,851.3
|
|
|
9,680.1
|
|
||
Accumulated Depreciation and Amortization
(September 30, 2019 and December 31, 2018 Amounts Include $105.7 and $174.6, Respectively, Related to Sabine) |
|
2,848.2
|
|
|
2,808.3
|
|
||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
7,003.1
|
|
|
6,871.8
|
|
||
|
|
|
|
|
||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
||||
Regulatory Assets
|
|
223.6
|
|
|
230.8
|
|
||
Deferred Charges and Other Noncurrent Assets
|
|
167.2
|
|
|
111.2
|
|
||
TOTAL OTHER NONCURRENT ASSETS
|
|
390.8
|
|
|
342.0
|
|
||
|
|
|
|
|
||||
TOTAL ASSETS
|
|
$
|
7,767.0
|
|
|
$
|
7,628.3
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Accounts Payable:
|
|
|
|
|
||||
General
|
|
$
|
127.6
|
|
|
$
|
129.1
|
|
Affiliated Companies
|
|
62.4
|
|
|
64.2
|
|
||
Long-term Debt Due Within One Year – Nonaffiliated
|
|
121.2
|
|
|
59.7
|
|
||
Risk Management Liabilities
|
|
1.7
|
|
|
0.4
|
|
||
Customer Deposits
|
|
65.0
|
|
|
64.5
|
|
||
Accrued Taxes
|
|
94.7
|
|
|
42.8
|
|
||
Accrued Interest
|
|
22.9
|
|
|
34.7
|
|
||
Obligations Under Operating Leases
|
|
5.9
|
|
|
—
|
|
||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
17.4
|
|
|
11.1
|
|
||
Other Current Liabilities
|
|
108.0
|
|
|
106.4
|
|
||
TOTAL CURRENT LIABILITIES
|
|
626.8
|
|
|
512.9
|
|
||
|
|
|
|
|
||||
NONCURRENT LIABILITIES
|
|
|
|
|
||||
Long-term Debt – Nonaffiliated
|
|
2,535.7
|
|
|
2,653.7
|
|
||
Long-term Risk Management Liabilities
|
|
3.0
|
|
|
2.2
|
|
||
Deferred Income Taxes
|
|
919.1
|
|
|
902.8
|
|
||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
918.1
|
|
|
923.0
|
|
||
Asset Retirement Obligations
|
|
200.9
|
|
|
191.3
|
|
||
Obligations Under Operating Leases
|
|
32.5
|
|
|
—
|
|
||
Deferred Credits and Other Noncurrent Liabilities
|
|
108.3
|
|
|
126.8
|
|
||
TOTAL NONCURRENT LIABILITIES
|
|
4,717.6
|
|
|
4,799.8
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES
|
|
5,344.4
|
|
|
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
|
|
1,615.4
|
|
|
1,508.4
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
(5.2
|
)
|
|
(5.4
|
)
|
||
TOTAL COMMON SHAREHOLDER’S EQUITY
|
|
2,422.5
|
|
|
2,315.3
|
|
||
|
|
|
|
|
||||
Noncontrolling Interest
|
|
0.1
|
|
|
0.3
|
|
||
|
|
|
|
|
||||
TOTAL EQUITY
|
|
2,422.6
|
|
|
2,315.6
|
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
7,767.0
|
|
|
$
|
7,628.3
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
147.6
|
|
|
$
|
141.7
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
Depreciation and Amortization
|
|
187.1
|
|
|
175.9
|
|
||
Deferred Income Taxes
|
|
(15.9
|
)
|
|
2.0
|
|
||
Allowance for Equity Funds Used During Construction
|
|
(4.5
|
)
|
|
(3.8
|
)
|
||
Mark-to-Market of Risk Management Contracts
|
|
(2.5
|
)
|
|
2.5
|
|
||
Property Taxes
|
|
(16.1
|
)
|
|
(15.8
|
)
|
||
Deferred Fuel Over/Under-Recovery, Net
|
|
14.1
|
|
|
4.4
|
|
||
Change in Other Noncurrent Assets
|
|
3.5
|
|
|
(8.9
|
)
|
||
Change in Other Noncurrent Liabilities
|
|
5.8
|
|
|
52.1
|
|
||
Changes in Certain Components of Working Capital:
|
|
|
|
|
||||
Accounts Receivable, Net
|
|
(17.2
|
)
|
|
44.3
|
|
||
Fuel, Materials and Supplies
|
|
(17.7
|
)
|
|
5.0
|
|
||
Accounts Payable
|
|
(12.8
|
)
|
|
(29.9
|
)
|
||
Accrued Taxes, Net
|
|
54.1
|
|
|
38.4
|
|
||
Other Current Assets
|
|
(4.5
|
)
|
|
3.2
|
|
||
Other Current Liabilities
|
|
(13.9
|
)
|
|
4.2
|
|
||
Net Cash Flows from Operating Activities
|
|
307.1
|
|
|
415.3
|
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
||||
Construction Expenditures
|
|
(277.3
|
)
|
|
(336.6
|
)
|
||
Change in Advances to Affiliates, Net
|
|
74.9
|
|
|
(516.6
|
)
|
||
Other Investing Activities
|
|
(1.2
|
)
|
|
1.2
|
|
||
Net Cash Flows Used for Investing Activities
|
|
(203.6
|
)
|
|
(852.0
|
)
|
||
|
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
||||
Issuance of Long-term Debt – Nonaffiliated
|
|
—
|
|
|
1,015.4
|
|
||
Change in Short-term Debt – Nonaffiliated
|
|
—
|
|
|
(2.6
|
)
|
||
Change in Advances from Affiliates, Net
|
|
—
|
|
|
(118.7
|
)
|
||
Retirement of Long-term Debt – Nonaffiliated
|
|
(58.2
|
)
|
|
(385.3
|
)
|
||
Principal Payments for Finance Lease Obligations
|
|
(8.1
|
)
|
|
(8.5
|
)
|
||
Dividends Paid on Common Stock
|
|
(37.5
|
)
|
|
(60.0
|
)
|
||
Dividends Paid on Common Stock – Nonaffiliated
|
|
(3.3
|
)
|
|
(3.2
|
)
|
||
Other Financing Activities
|
|
0.5
|
|
|
0.5
|
|
||
Net Cash Flows from (Used for) Financing Activities
|
|
(106.6
|
)
|
|
437.6
|
|
||
|
|
|
|
|
||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
(3.1
|
)
|
|
0.9
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
|
24.5
|
|
|
1.6
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
21.4
|
|
|
$
|
2.5
|
|
|
|
|
|
|
||||
SUPPLEMENTARY INFORMATION
|
|
|
|
|
||||
Cash Paid for Interest, Net of Capitalized Amounts
|
|
$
|
95.1
|
|
|
$
|
102.5
|
|
Net Cash Paid for Income Taxes
|
|
7.3
|
|
|
12.9
|
|
||
Noncash Acquisitions Under Finance Leases
|
|
4.7
|
|
|
3.2
|
|
||
Construction Expenditures Included in Current Liabilities as of September 30,
|
|
52.0
|
|
|
37.0
|
|
Note
|
|
Registrant
|
|
Page
Number
|
|
|
|
|
|
Significant Accounting Matters
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
New Accounting Standards
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Comprehensive Income
|
|
AEP, AEP Texas, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Rate Matters
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Commitments, Guarantees and Contingencies
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Acquisitions and Impairments
|
|
AEP, APCo
|
|
|
Benefit Plans
|
|
AEP, AEP Texas, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Business Segments
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Derivatives and Hedging
|
|
AEP, AEP Texas, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Fair Value Measurements
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Income Taxes
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Leases
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Financing Activities
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Variable Interest Entities and Equity Method Investments
|
|
AEP
|
|
|
Revenue from Contracts with Customers
|
|
AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO, SWEPCo
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
(in millions, except per share data)
|
||||||||||||||
|
|
|
|
$/share
|
|
|
|
$/share
|
|||||||
Earnings Attributable to AEP Common Shareholders
|
$
|
733.5
|
|
|
|
|
|
$
|
577.6
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Weighted Average Number of Basic Shares Outstanding
|
493.8
|
|
|
$
|
1.49
|
|
|
493.0
|
|
|
$
|
1.17
|
|
||
Weighted Average Dilutive Effect of Stock-Based Awards
|
1.7
|
|
|
(0.01
|
)
|
|
0.9
|
|
|
—
|
|
||||
Weighted Average Number of Diluted Shares Outstanding
|
495.5
|
|
|
$
|
1.48
|
|
|
493.9
|
|
|
$
|
1.17
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
(in millions, except per share data)
|
||||||||||||||
|
|
|
|
$/share
|
|
|
|
$/share
|
|||||||
Earnings Attributable to AEP Common Shareholders
|
$
|
1,767.6
|
|
|
|
|
$
|
1,560.4
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted Average Number of Basic Shares Outstanding
|
493.6
|
|
|
$
|
3.58
|
|
|
492.6
|
|
|
$
|
3.17
|
|
||
Weighted Average Dilutive Effect of Stock-Based Awards
|
1.5
|
|
|
(0.01
|
)
|
|
0.9
|
|
|
(0.01
|
)
|
||||
Weighted Average Number of Diluted Shares Outstanding
|
495.1
|
|
|
$
|
3.57
|
|
|
493.5
|
|
|
$
|
3.16
|
|
|
|
September 30, 2019
|
||||||||||||||
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
OPCo
|
||||||||
|
|
(in millions)
|
||||||||||||||
Cash and Cash Equivalents
|
|
$
|
348.8
|
|
|
$
|
0.1
|
|
|
$
|
3.5
|
|
|
$
|
4.7
|
|
Restricted Cash
|
|
141.0
|
|
|
114.3
|
|
|
17.1
|
|
|
—
|
|
||||
Total Cash, Cash Equivalents and Restricted Cash
|
|
$
|
489.8
|
|
|
$
|
114.4
|
|
|
$
|
20.6
|
|
|
$
|
4.7
|
|
|
|
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
|
|
Practical Expedient
|
|
Description
|
Overall Expedients (for leases commenced prior to adoption date and must be adopted as a package)
|
|
Do not need to reassess whether any expired or existing contracts are/or contain leases, do not need to reassess the lease classification for any expired or existing leases and do not need to reassess initial direct costs for any existing leases.
|
Lease and Non-lease Components (elect by class of underlying asset)
|
|
Elect as an accounting policy to not separate non-lease components from lease components and instead account for each lease and associated non-lease component as a single lease component.
|
Short-term Lease (elect by class of underlying asset)
|
|
Elect as an accounting policy to not apply the recognition requirements to short-term leases.
|
Existing and expired land easements not previously accounted for as leases
|
|
Elect optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840.
|
Cumulative-effect adjustment in the period of adoption
|
|
Elect the optional transition practical expedient to adopt the new lease requirements through a cumulative-effect adjustment on the balance sheet in the period of adoption.
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
Three Months Ended September 30, 2019
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Balance in AOCI as of June 30, 2019
|
|
$
|
(127.2
|
)
|
|
$
|
(15.9
|
)
|
|
$
|
(87.6
|
)
|
|
$
|
(230.7
|
)
|
Change in Fair Value Recognized in AOCI
|
|
38.4
|
|
|
(0.8
|
)
|
(b)
|
—
|
|
|
37.6
|
|
||||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
Generation & Marketing Revenues (a)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Purchased Electricity for Resale (a)
|
|
8.5
|
|
|
—
|
|
|
—
|
|
|
8.5
|
|
||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
(4.8
|
)
|
||||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
3.0
|
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
8.4
|
|
|
—
|
|
|
(1.8
|
)
|
|
6.6
|
|
||||
Income Tax (Expense) Benefit
|
|
1.8
|
|
|
—
|
|
|
(0.4
|
)
|
|
1.4
|
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
6.6
|
|
|
—
|
|
|
(1.4
|
)
|
|
5.2
|
|
||||
Net Current Period Other Comprehensive Income (Loss)
|
|
45.0
|
|
|
(0.8
|
)
|
|
(1.4
|
)
|
|
42.8
|
|
||||
Balance in AOCI as of September 30, 2019
|
|
$
|
(82.2
|
)
|
|
$
|
(16.7
|
)
|
|
$
|
(89.0
|
)
|
|
$
|
(187.9
|
)
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
Three Months Ended September 30, 2018
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Balance in AOCI as of June 30, 2018
|
|
$
|
(30.4
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
(49.1
|
)
|
|
$
|
(94.8
|
)
|
Change in Fair Value Recognized in AOCI
|
|
12.2
|
|
|
2.3
|
|
|
—
|
|
|
14.5
|
|
||||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
Generation & Marketing Revenues (a)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Purchased Electricity for Resale (a)
|
|
(5.8
|
)
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
||||
Interest Expense (a)
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
|
(5.0
|
)
|
||||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
3.2
|
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(5.9
|
)
|
|
0.4
|
|
|
(1.8
|
)
|
|
(7.3
|
)
|
||||
Income Tax (Expense) Benefit
|
|
(1.3
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
|
(1.6
|
)
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(4.6
|
)
|
|
0.3
|
|
|
(1.4
|
)
|
|
(5.7
|
)
|
||||
Net Current Period Other Comprehensive Income (Loss)
|
|
7.6
|
|
|
2.6
|
|
|
(1.4
|
)
|
|
8.8
|
|
||||
Balance in AOCI as of September 30, 2018
|
|
$
|
(22.8
|
)
|
|
$
|
(12.7
|
)
|
|
$
|
(50.5
|
)
|
|
$
|
(86.0
|
)
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
Nine Months Ended September 30, 2019
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Balance in AOCI as of December 31, 2018
|
|
$
|
(23.0
|
)
|
|
$
|
(12.6
|
)
|
|
$
|
(84.8
|
)
|
|
$
|
(120.4
|
)
|
Change in Fair Value Recognized in AOCI
|
|
(92.3
|
)
|
|
(4.5
|
)
|
(b)
|
—
|
|
|
(96.8
|
)
|
||||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
||||||||
Generation & Marketing Revenues (a)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Purchased Electricity for Resale (a)
|
|
42.0
|
|
|
—
|
|
|
—
|
|
|
42.0
|
|
||||
Interest Expense (a)
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(14.3
|
)
|
|
(14.3
|
)
|
||||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|
9.0
|
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
41.9
|
|
|
0.5
|
|
|
(5.3
|
)
|
|
37.1
|
|
||||
Income Tax (Expense) Benefit
|
|
8.8
|
|
|
0.1
|
|
|
(1.1
|
)
|
|
7.8
|
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
33.1
|
|
|
0.4
|
|
|
(4.2
|
)
|
|
29.3
|
|
||||
Net Current Period Other Comprehensive Income (Loss)
|
|
(59.2
|
)
|
|
(4.1
|
)
|
|
(4.2
|
)
|
|
(67.5
|
)
|
||||
Balance in AOCI as of September 30, 2019
|
|
$
|
(82.2
|
)
|
|
$
|
(16.7
|
)
|
|
$
|
(89.0
|
)
|
|
$
|
(187.9
|
)
|
|
|
Cash Flow Hedges
|
|
Securities
|
|
|
|
|
||||||||||||
|
|
|
|
Interest
|
|
Available
|
|
Pension
|
|
|
||||||||||
Nine Months Ended September 30, 2018
|
|
Commodity
|
|
Rate
|
|
for Sale
|
|
and OPEB
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Balance in AOCI as of December 31, 2017
|
|
$
|
(28.4
|
)
|
|
$
|
(13.0
|
)
|
|
$
|
11.9
|
|
|
$
|
(38.3
|
)
|
|
$
|
(67.8
|
)
|
Change in Fair Value Recognized in AOCI
|
|
30.4
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
32.7
|
|
|||||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Generation & Marketing Revenues (a)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||||
Purchased Electricity for Resale (a)
|
|
(23.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.6
|
)
|
|||||
Interest Expense (a)
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.7
|
)
|
|
(14.7
|
)
|
|||||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
9.6
|
|
|||||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(23.7
|
)
|
|
0.9
|
|
|
—
|
|
|
(5.1
|
)
|
|
(27.9
|
)
|
|||||
Income Tax (Expense) Benefit
|
|
(5.0
|
)
|
|
0.2
|
|
|
—
|
|
|
(1.1
|
)
|
|
(5.9
|
)
|
|||||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(18.7
|
)
|
|
0.7
|
|
|
—
|
|
|
(4.0
|
)
|
|
(22.0
|
)
|
|||||
Net Current Period Other Comprehensive Income (Loss)
|
|
11.7
|
|
|
3.0
|
|
|
—
|
|
|
(4.0
|
)
|
|
10.7
|
|
|||||
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 September 30, 2018
|
|
$
|
(22.8
|
)
|
|
$
|
(12.7
|
)
|
|
$
|
—
|
|
|
$
|
(50.5
|
)
|
|
$
|
(86.0
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2019
|
|
$
|
(3.9
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(14.5
|
)
|
Change in Fair Value Recognized in AOCI
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
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
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Income Tax (Expense) Benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
(3.6
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(14.2
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2018
|
|
$
|
(4.9
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
(14.7
|
)
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
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 September 30, 2018
|
|
$
|
(4.6
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
(14.4
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2018
|
|
$
|
(4.4
|
)
|
|
$
|
(10.7
|
)
|
|
$
|
(15.1
|
)
|
Change in Fair Value Recognized in AOCI
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
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)
|
|
0.8
|
|
|
0.1
|
|
|
0.9
|
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
(3.6
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(14.2
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2017
|
|
$
|
(4.5
|
)
|
|
$
|
(8.1
|
)
|
|
$
|
(12.6
|
)
|
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)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.0
|
|
|
0.1
|
|
|
1.1
|
|
|||
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.8
|
|
|
0.1
|
|
|
0.9
|
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
0.8
|
|
|
0.1
|
|
|
0.9
|
|
|||
ASU 2018-02 Adoption
|
|
(0.9
|
)
|
|
(1.8
|
)
|
|
(2.7
|
)
|
|||
Balance in AOCI as of September 30, 2018
|
|
$
|
(4.6
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
(14.4
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2019
|
|
$
|
1.4
|
|
|
$
|
(8.1
|
)
|
|
$
|
(6.7
|
)
|
Change in Fair Value Recognized in AOCI
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.6
|
|
|
0.6
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Income Tax (Expense) Benefit
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
1.1
|
|
|
$
|
(8.7
|
)
|
|
$
|
(7.6
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2018
|
|
$
|
2.3
|
|
|
$
|
(2.7
|
)
|
|
$
|
(0.4
|
)
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
(0.9
|
)
|
|
(1.3
|
)
|
|||
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(1.0
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(1.0
|
)
|
|||
Balance in AOCI as of September 30, 2018
|
|
$
|
2.0
|
|
|
$
|
(3.4
|
)
|
|
$
|
(1.4
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2018
|
|
$
|
1.8
|
|
|
$
|
(6.8
|
)
|
|
$
|
(5.0
|
)
|
Change in Fair Value Recognized in AOCI
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(4.0
|
)
|
|
(4.0
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
1.6
|
|
|
1.6
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.5
|
)
|
|
(2.4
|
)
|
|
(2.9
|
)
|
|||
Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
(0.5
|
)
|
|
(0.6
|
)
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.4
|
)
|
|
(1.9
|
)
|
|
(2.3
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.7
|
)
|
|
(1.9
|
)
|
|
(2.6
|
)
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
1.1
|
|
|
$
|
(8.7
|
)
|
|
$
|
(7.6
|
)
|
|
|
Cash Flow Hedges
|
|
Pension
|
|
|
||||||||||
Nine Months Ended September 30, 2018
|
|
Commodity
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Balance in AOCI as of December 31, 2017
|
|
$
|
—
|
|
|
$
|
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)
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
(3.9
|
)
|
||||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
||||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.9
|
|
|
(0.9
|
)
|
|
(2.9
|
)
|
|
(2.9
|
)
|
||||
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
(0.2
|
)
|
|
(0.6
|
)
|
|
(0.6
|
)
|
||||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.7
|
|
|
(0.7
|
)
|
|
(2.3
|
)
|
|
(2.3
|
)
|
||||
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
(0.7
|
)
|
|
(2.3
|
)
|
|
(3.0
|
)
|
||||
ASU 2018-02 Adoption
|
|
—
|
|
|
0.5
|
|
|
(0.2
|
)
|
|
0.3
|
|
||||
Balance in AOCI as of September 30, 2018
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
$
|
(3.4
|
)
|
|
$
|
(1.4
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2019
|
|
$
|
(10.7
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(13.1
|
)
|
Change in Fair Value Recognized in AOCI
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
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
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Income Tax (Expense) Benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
(10.3
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(12.7
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2018
|
|
$
|
(12.2
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(13.9
|
)
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
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
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
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 September 30, 2018
|
|
$
|
(11.9
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(13.6
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2018
|
|
$
|
(11.5
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(13.8
|
)
|
Change in Fair Value Recognized in AOCI
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|||
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)
|
|
1.2
|
|
|
(0.1
|
)
|
|
1.1
|
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
(10.3
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(12.7
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
|
(in millions)
|
||||||||||
Balance in AOCI as of December 31, 2017
|
|
$
|
(10.7
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(12.1
|
)
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.6
|
|
|
0.6
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|||
Income Tax (Expense) Benefit
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|||
ASU 2018-02 Adoption
|
|
(2.4
|
)
|
|
(0.3
|
)
|
|
(2.7
|
)
|
|||
Balance in AOCI as of September 30, 2018
|
|
$
|
(11.9
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(13.6
|
)
|
|
|
Cash Flow Hedge –
|
||
Three Months Ended September 30, 2019
|
|
Interest Rate
|
||
|
(in millions)
|
|||
Balance in AOCI as of June 30, 2019
|
|
$
|
0.3
|
|
Change in Fair Value Recognized in AOCI
|
|
(0.2
|
)
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
Interest Expense (a)
|
|
(0.1
|
)
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
Income Tax (Expense) Benefit
|
|
—
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.1
|
)
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.3
|
)
|
|
Balance in AOCI as of September 30, 2019
|
|
$
|
—
|
|
|
|
Cash Flow Hedge –
|
||
Three Months Ended September 30, 2018
|
|
Interest Rate
|
||
|
(in millions)
|
|||
Balance in AOCI as of June 30, 2018
|
|
$
|
1.7
|
|
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 September 30, 2018
|
|
$
|
1.3
|
|
|
|
Cash Flow Hedge –
|
||
Nine Months Ended September 30, 2019
|
|
Interest Rate
|
||
|
(in millions)
|
|||
Balance in AOCI as of December 31, 2018
|
|
$
|
1.0
|
|
Change in Fair Value Recognized in AOCI
|
|
(0.2
|
)
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
Interest Expense (a)
|
|
(1.0
|
)
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(1.0
|
)
|
|
Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.8
|
)
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(1.0
|
)
|
|
Balance in AOCI as of September 30, 2019
|
|
$
|
—
|
|
|
|
Cash Flow Hedge –
|
||
Nine Months Ended September 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)
|
|
(1.3
|
)
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(1.3
|
)
|
|
Income Tax (Expense) Benefit
|
|
(0.3
|
)
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(1.0
|
)
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(1.0
|
)
|
|
ASU 2018-02 Adoption
|
|
0.4
|
|
|
Balance in AOCI as of September 30, 2018
|
|
$
|
1.3
|
|
|
|
Cash Flow Hedge –
|
||
Three Months Ended September 30, 2019
|
|
Interest Rate
|
||
|
(in millions)
|
|||
Balance in AOCI as of June 30, 2019
|
|
$
|
1.6
|
|
Change in Fair Value Recognized in AOCI
|
|
(0.3
|
)
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
Interest Expense (a)
|
|
0.2
|
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
0.2
|
|
|
Income Tax (Expense) Benefit
|
|
0.1
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.1
|
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.2
|
)
|
|
Balance in AOCI as of September 30, 2019
|
|
$
|
1.4
|
|
|
|
Cash Flow Hedge –
|
||
Three Months Ended September 30, 2018
|
|
Interest Rate
|
||
|
(in millions)
|
|||
Balance in AOCI as of June 30, 2018
|
|
$
|
2.6
|
|
Change in Fair Value Recognized in AOCI
|
|
—
|
|
|
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
||
Interest Expense (a)
|
|
(0.2
|
)
|
|
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
Income Tax (Expense) Benefit
|
|
—
|
|
|
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
(0.2
|
)
|
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(0.2
|
)
|
|
Balance in AOCI as of September 30, 2018
|
|
$
|
2.4
|
|
|
|
Cash Flow Hedge –
|
||
Nine Months Ended September 30, 2019
|
|
Interest Rate
|
||
|
(in millions)
|
|||
Balance in AOCI as of December 31, 2018
|
|
$
|
2.1
|
|
Change in Fair Value Recognized in AOCI
|
|
(0.3
|
)
|
|
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)
|
|
(0.7
|
)
|
|
Balance in AOCI as of September 30, 2019
|
|
$
|
1.4
|
|
|
|
Cash Flow Hedge –
|
||
Nine Months Ended September 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)
|
|
(0.9
|
)
|
|
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
|
)
|
|
ASU 2018-02 Adoption
|
|
0.5
|
|
|
Balance in AOCI as of September 30, 2018
|
|
$
|
2.4
|
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2019
|
|
$
|
(2.5
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(5.2
|
)
|
Change in Fair Value Recognized in AOCI
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|||
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 September 30, 2019
|
|
$
|
(2.2
|
)
|
|
$
|
(3.0
|
)
|
|
$
|
(5.2
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Three Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of June 30, 2018
|
|
$
|
(6.4
|
)
|
|
$
|
1.7
|
|
|
$
|
(4.7
|
)
|
Change in Fair Value Recognized in AOCI
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|||
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)
|
|
2.7
|
|
|
(0.3
|
)
|
|
2.4
|
|
|||
Balance in AOCI as of September 30, 2018
|
|
$
|
(3.7
|
)
|
|
$
|
1.4
|
|
|
$
|
(2.3
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2019
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2018
|
|
$
|
(3.3
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(5.4
|
)
|
Change in Fair Value Recognized in AOCI
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.5
|
)
|
|
(1.5
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.0
|
|
|
(1.1
|
)
|
|
(0.1
|
)
|
|||
Income Tax (Expense) Benefit
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
0.8
|
|
|
(0.9
|
)
|
|
(0.1
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
1.1
|
|
|
(0.9
|
)
|
|
0.2
|
|
|||
Balance in AOCI as of September 30, 2019
|
|
$
|
(2.2
|
)
|
|
$
|
(3.0
|
)
|
|
$
|
(5.2
|
)
|
|
|
Cash Flow Hedge –
|
|
Pension
|
|
|
||||||
Nine Months Ended September 30, 2018
|
|
Interest Rate
|
|
and OPEB
|
|
Total
|
||||||
|
(in millions)
|
|||||||||||
Balance in AOCI as of December 31, 2017
|
|
$
|
(6.0
|
)
|
|
$
|
2.0
|
|
|
$
|
(4.0
|
)
|
Change in Fair Value Recognized in AOCI
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|||
Amount of (Gain) Loss Reclassified from AOCI
|
|
|
|
|
|
|
||||||
Interest Expense (a)
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|||
Amortization of Prior Service Cost (Credit)
|
|
—
|
|
|
(1.5
|
)
|
|
(1.5
|
)
|
|||
Amortization of Actuarial (Gains) Losses
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|||
Reclassifications from AOCI, before Income Tax (Expense) Benefit
|
|
1.6
|
|
|
(1.3
|
)
|
|
0.3
|
|
|||
Income Tax (Expense) Benefit
|
|
0.3
|
|
|
(0.3
|
)
|
|
—
|
|
|||
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit
|
|
1.3
|
|
|
(1.0
|
)
|
|
0.3
|
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
3.6
|
|
|
(1.0
|
)
|
|
2.6
|
|
|||
ASU 2018-02 Adoption
|
|
(1.3
|
)
|
|
0.4
|
|
|
(0.9
|
)
|
|||
Balance in AOCI as of September 30, 2018
|
|
$
|
(3.7
|
)
|
|
$
|
1.4
|
|
|
$
|
(2.3
|
)
|
(a)
|
Amounts reclassified to the referenced line item on the statements of income.
|
(b)
|
The change in fair value includes $2 million and $6 million related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC for the three and nine months ended September 30, 2019, respectively. See “Sempra Renewables LLC” section of Note 14 for additional information.
|
Gross
Investment |
|
Accumulated
Depreciation |
|
Net
Investment |
|
Accelerated
Depreciation Regulatory Asset (a) |
|
Materials and Supplies
|
|
Cost of
Removal Regulatory Liability |
|
Expected
Retirement Date |
|
Remaining
Recovery Period |
||||||||||||
(dollars in millions)
|
||||||||||||||||||||||||||
$
|
106.6
|
|
|
$
|
80.6
|
|
|
$
|
26.0
|
|
|
$
|
21.9
|
|
|
$
|
3.2
|
|
|
$
|
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 September 2019, AEP Texas securitized $235 million of storm-related costs. As a result of the securitization, the regulatory asset balance was transferred to Securitized Assets on the balance sheets. See “Texas Storm Cost Securitization” discussion below for additional information.
|
(b)
|
In 2015, APCo recorded a $91 million reduction, before cost of removal of $17 million, to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates.
|
|
|
AEP Texas
|
||||||
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
||||
Regulatory Assets Currently Not Earning a Return
|
|
|
|
|
||||
Rate Case Expense
|
|
$
|
2.3
|
|
|
$
|
0.2
|
|
Storm-Related Costs (a)
|
|
—
|
|
|
152.4
|
|
||
Total Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
2.3
|
|
|
$
|
152.6
|
|
(a)
|
In September 2019, AEP Texas securitized $235 million of storm-related costs. As a result of the securitization, the regulatory asset balance was transferred to Securitized Assets on the balance sheets. See “Texas Storm Cost Securitization” discussion below for additional information.
|
|
|
APCo
|
||||||
|
|
September 30,
|
|
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
|
|
37.8
|
|
|
35.3
|
|
||
Other Regulatory Assets Pending Final Regulatory Approval
|
|
—
|
|
|
0.6
|
|
||
Total Regulatory Assets Pending Final Regulatory Approval (a)
|
|
$
|
42.9
|
|
|
$
|
44.9
|
|
(a)
|
In 2015, APCo recorded a $91 million reduction, before cost of removal of $17 million, to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates.
|
|
|
OPCo
|
||||||
|
|
September 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
|
||||||
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
Noncurrent Regulatory Assets
|
|
(in millions)
|
||||||
|
|
|
|
|
||||
Regulatory Assets Currently Earning a Return
|
|
|
|
|
||||
Oklaunion Power Station Accelerated Depreciation
|
|
$
|
21.9
|
|
|
$
|
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
|
|
$
|
21.9
|
|
|
$
|
6.0
|
|
|
|
SWEPCo
|
||||||
|
|
September 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
|
|
6.8
|
|
|
5.3
|
|
||
Rate Case Expense – Texas
|
|
1.4
|
|
|
4.9
|
|
||
Other Regulatory Assets Pending Final Regulatory Approval
|
|
4.2
|
|
|
3.6
|
|
||
Total Regulatory Assets Pending Final Regulatory Approval
|
|
$
|
63.0
|
|
|
$
|
64.4
|
|
Company
|
|
Amount
|
|
Maturity
|
||
|
|
(in millions)
|
|
|
||
AEP
|
|
$
|
204.4
|
|
|
October 2019 to October 2020
|
AEP Texas
|
|
2.2
|
|
|
July 2020
|
|
OPCo
|
|
3.6
|
|
|
April 2020 to September 2020
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
23.8
|
|
|
$
|
24.4
|
|
|
$
|
2.4
|
|
|
$
|
2.9
|
|
Interest Cost
|
51.1
|
|
|
46.9
|
|
|
12.6
|
|
|
11.8
|
|
||||
Expected Return on Plan Assets
|
(74.0
|
)
|
|
(72.6
|
)
|
|
(23.4
|
)
|
|
(25.6
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(17.3
|
)
|
|
(17.3
|
)
|
||||
Amortization of Net Actuarial Loss
|
14.4
|
|
|
21.3
|
|
|
5.5
|
|
|
2.7
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
15.3
|
|
|
$
|
20.0
|
|
|
$
|
(20.2
|
)
|
|
$
|
(25.5
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
71.6
|
|
|
$
|
73.2
|
|
|
$
|
7.1
|
|
|
$
|
8.7
|
|
Interest Cost
|
153.3
|
|
|
140.8
|
|
|
37.9
|
|
|
35.5
|
|
||||
Expected Return on Plan Assets
|
(222.0
|
)
|
|
(217.7
|
)
|
|
(70.3
|
)
|
|
(76.7
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(51.8
|
)
|
|
(51.8
|
)
|
||||
Amortization of Net Actuarial Loss
|
43.2
|
|
|
63.9
|
|
|
16.6
|
|
|
7.9
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
46.1
|
|
|
$
|
60.2
|
|
|
$
|
(60.5
|
)
|
|
$
|
(76.4
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
2.2
|
|
|
$
|
2.3
|
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
Interest Cost
|
4.4
|
|
|
4.0
|
|
|
1.0
|
|
|
0.9
|
|
||||
Expected Return on Plan Assets
|
(6.5
|
)
|
|
(6.4
|
)
|
|
(1.9
|
)
|
|
(2.1
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
(1.5
|
)
|
||||
Amortization of Net Actuarial Loss
|
1.2
|
|
|
1.8
|
|
|
0.5
|
|
|
0.2
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
1.3
|
|
|
$
|
1.7
|
|
|
$
|
(1.8
|
)
|
|
$
|
(2.2
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
6.5
|
|
|
$
|
6.9
|
|
|
$
|
0.5
|
|
|
$
|
0.7
|
|
Interest Cost
|
13.1
|
|
|
12.0
|
|
|
3.0
|
|
|
2.8
|
|
||||
Expected Return on Plan Assets
|
(19.4
|
)
|
|
(19.2
|
)
|
|
(5.8
|
)
|
|
(6.4
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|
(4.4
|
)
|
||||
Amortization of Net Actuarial Loss
|
3.7
|
|
|
5.4
|
|
|
1.4
|
|
|
0.6
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
3.9
|
|
|
$
|
5.1
|
|
|
$
|
(5.3
|
)
|
|
$
|
(6.7
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
2.4
|
|
|
$
|
2.4
|
|
|
$
|
0.2
|
|
|
$
|
0.3
|
|
Interest Cost
|
6.3
|
|
|
5.8
|
|
|
2.2
|
|
|
2.1
|
|
||||
Expected Return on Plan Assets
|
(9.4
|
)
|
|
(9.1
|
)
|
|
(3.7
|
)
|
|
(4.0
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
||||
Amortization of Net Actuarial Loss
|
1.8
|
|
|
2.6
|
|
|
1.0
|
|
|
0.4
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
1.1
|
|
|
$
|
1.7
|
|
|
$
|
(2.8
|
)
|
|
$
|
(3.7
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
7.1
|
|
|
$
|
7.0
|
|
|
$
|
0.7
|
|
|
$
|
0.8
|
|
Interest Cost
|
18.9
|
|
|
17.6
|
|
|
6.5
|
|
|
6.2
|
|
||||
Expected Return on Plan Assets
|
(28.1
|
)
|
|
(27.4
|
)
|
|
(11.0
|
)
|
|
(12.0
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
|
(7.5
|
)
|
||||
Amortization of Net Actuarial Loss
|
5.3
|
|
|
7.9
|
|
|
2.8
|
|
|
1.4
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
3.2
|
|
|
$
|
5.1
|
|
|
$
|
(8.5
|
)
|
|
$
|
(11.1
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
3.3
|
|
|
$
|
3.4
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
Interest Cost
|
6.0
|
|
|
5.6
|
|
|
1.5
|
|
|
1.4
|
|
||||
Expected Return on Plan Assets
|
(9.1
|
)
|
|
(9.0
|
)
|
|
(2.8
|
)
|
|
(3.1
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
(2.4
|
)
|
||||
Amortization of Net Actuarial Loss
|
1.6
|
|
|
2.5
|
|
|
0.7
|
|
|
0.3
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
1.8
|
|
|
$
|
2.5
|
|
|
$
|
(2.7
|
)
|
|
$
|
(3.4
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
10.0
|
|
|
$
|
10.2
|
|
|
$
|
1.0
|
|
|
$
|
1.2
|
|
Interest Cost
|
17.9
|
|
|
16.6
|
|
|
4.4
|
|
|
4.1
|
|
||||
Expected Return on Plan Assets
|
(27.5
|
)
|
|
(26.8
|
)
|
|
(8.5
|
)
|
|
(9.3
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(7.1
|
)
|
|
(7.1
|
)
|
||||
Amortization of Net Actuarial Loss
|
4.9
|
|
|
7.4
|
|
|
2.0
|
|
|
0.9
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
5.3
|
|
|
$
|
7.4
|
|
|
$
|
(8.2
|
)
|
|
$
|
(10.2
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
1.9
|
|
|
$
|
2.0
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
Interest Cost
|
4.8
|
|
|
4.4
|
|
|
1.4
|
|
|
1.3
|
|
||||
Expected Return on Plan Assets
|
(7.3
|
)
|
|
(7.2
|
)
|
|
(2.7
|
)
|
|
(2.9
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|
(1.7
|
)
|
||||
Amortization of Net Actuarial Loss
|
1.3
|
|
|
2.0
|
|
|
0.6
|
|
|
0.3
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
0.7
|
|
|
$
|
1.2
|
|
|
$
|
(2.3
|
)
|
|
$
|
(2.8
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
5.9
|
|
|
$
|
5.8
|
|
|
$
|
0.6
|
|
|
$
|
0.7
|
|
Interest Cost
|
14.3
|
|
|
13.3
|
|
|
4.1
|
|
|
3.9
|
|
||||
Expected Return on Plan Assets
|
(22.0
|
)
|
|
(21.6
|
)
|
|
(8.1
|
)
|
|
(8.8
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(5.2
|
)
|
|
(5.2
|
)
|
||||
Amortization of Net Actuarial Loss
|
4.0
|
|
|
6.0
|
|
|
1.9
|
|
|
0.8
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
2.2
|
|
|
$
|
3.5
|
|
|
$
|
(6.7
|
)
|
|
$
|
(8.6
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
1.6
|
|
|
$
|
1.7
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
Interest Cost
|
2.6
|
|
|
2.5
|
|
|
0.7
|
|
|
0.6
|
|
||||
Expected Return on Plan Assets
|
(4.0
|
)
|
|
(4.0
|
)
|
|
(1.3
|
)
|
|
(1.3
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
(1.1
|
)
|
||||
Amortization of Net Actuarial Loss
|
0.7
|
|
|
1.1
|
|
|
0.3
|
|
|
0.1
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
0.9
|
|
|
$
|
1.3
|
|
|
$
|
(1.2
|
)
|
|
$
|
(1.6
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
4.9
|
|
|
$
|
5.3
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Interest Cost
|
7.9
|
|
|
7.4
|
|
|
2.0
|
|
|
1.8
|
|
||||
Expected Return on Plan Assets
|
(12.2
|
)
|
|
(12.1
|
)
|
|
(3.9
|
)
|
|
(4.1
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
||||
Amortization of Net Actuarial Loss
|
2.2
|
|
|
3.3
|
|
|
0.9
|
|
|
0.4
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
2.8
|
|
|
$
|
3.9
|
|
|
$
|
(3.7
|
)
|
|
$
|
(4.6
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
2.1
|
|
|
$
|
2.4
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
Interest Cost
|
3.1
|
|
|
2.8
|
|
|
0.7
|
|
|
0.7
|
|
||||
Expected Return on Plan Assets
|
(4.4
|
)
|
|
(4.4
|
)
|
|
(1.5
|
)
|
|
(1.6
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
||||
Amortization of Net Actuarial Loss
|
0.9
|
|
|
1.3
|
|
|
0.4
|
|
|
0.2
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
1.7
|
|
|
$
|
2.1
|
|
|
$
|
(1.5
|
)
|
|
$
|
(1.8
|
)
|
|
Pension Plans
|
|
OPEB
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Service Cost
|
$
|
6.4
|
|
|
$
|
7.0
|
|
|
$
|
0.6
|
|
|
$
|
0.7
|
|
Interest Cost
|
9.3
|
|
|
8.5
|
|
|
2.3
|
|
|
2.1
|
|
||||
Expected Return on Plan Assets
|
(13.3
|
)
|
|
(13.1
|
)
|
|
(4.5
|
)
|
|
(4.8
|
)
|
||||
Amortization of Prior Service Credit
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
(3.9
|
)
|
||||
Amortization of Net Actuarial Loss
|
2.6
|
|
|
3.8
|
|
|
1.1
|
|
|
0.5
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
5.0
|
|
|
$
|
6.2
|
|
|
$
|
(4.4
|
)
|
|
$
|
(5.4
|
)
|
•
|
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.
|
•
|
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEP Texas and OPCo.
|
•
|
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
|
•
|
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved ROEs.
|
•
|
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved ROEs.
|
•
|
Competitive generation in ERCOT and PJM.
|
•
|
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
|
•
|
Contracted renewable energy investments and management services.
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation
& Marketing |
|
Corporate and Other (a)
|
|
Reconciling Adjustments
|
|
Consolidated
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
2,598.9
|
|
|
$
|
1,147.3
|
|
|
$
|
65.5
|
|
|
$
|
501.2
|
|
|
$
|
2.1
|
|
|
$
|
—
|
|
|
$
|
4,315.0
|
|
Other Operating Segments
|
46.6
|
|
|
39.3
|
|
|
207.5
|
|
|
32.5
|
|
|
22.3
|
|
|
(348.2
|
)
|
|
—
|
|
|||||||
Total Revenues
|
$
|
2,645.5
|
|
|
$
|
1,186.6
|
|
|
$
|
273.0
|
|
|
$
|
533.7
|
|
|
$
|
24.4
|
|
|
$
|
(348.2
|
)
|
|
$
|
4,315.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income (Loss)
|
$
|
438.4
|
|
|
$
|
133.7
|
|
|
$
|
127.0
|
|
|
$
|
88.7
|
|
|
$
|
(53.9
|
)
|
|
$
|
—
|
|
|
$
|
733.9
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation
& Marketing |
|
Corporate and Other (a)
|
|
Reconciling Adjustments
|
|
Consolidated
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
2,610.2
|
|
|
$
|
1,180.9
|
|
|
$
|
51.9
|
|
|
$
|
486.5
|
|
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
4,333.1
|
|
Other Operating Segments
|
26.5
|
|
|
30.6
|
|
|
135.3
|
|
|
35.1
|
|
|
20.1
|
|
|
(247.6
|
)
|
|
—
|
|
|||||||
Total Revenues
|
$
|
2,636.7
|
|
|
$
|
1,211.5
|
|
|
$
|
187.2
|
|
|
$
|
521.6
|
|
|
$
|
23.7
|
|
|
$
|
(247.6
|
)
|
|
$
|
4,333.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income (Loss)
|
$
|
345.6
|
|
|
$
|
145.2
|
|
|
$
|
74.2
|
|
|
$
|
5.1
|
|
|
$
|
9.6
|
|
|
$
|
—
|
|
|
$
|
579.7
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation
& Marketing |
|
Corporate and Other (a)
|
|
Reconciling Adjustments
|
|
Consolidated
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
7,087.6
|
|
|
$
|
3,328.7
|
|
|
$
|
196.5
|
|
|
$
|
1,323.8
|
|
|
$
|
8.8
|
|
|
$
|
—
|
|
|
$
|
11,945.4
|
|
Other Operating Segments
|
85.0
|
|
|
125.6
|
|
|
611.8
|
|
|
104.4
|
|
|
64.9
|
|
|
(991.7
|
)
|
|
—
|
|
|||||||
Total Revenues
|
$
|
7,172.6
|
|
|
$
|
3,454.3
|
|
|
$
|
808.3
|
|
|
$
|
1,428.2
|
|
|
$
|
73.7
|
|
|
$
|
(991.7
|
)
|
|
$
|
11,945.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income (Loss)
|
$
|
920.8
|
|
|
$
|
421.6
|
|
|
$
|
407.6
|
|
|
$
|
133.1
|
|
|
$
|
(116.0
|
)
|
|
$
|
—
|
|
|
$
|
1,767.1
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation
& Marketing |
|
Corporate and Other (a)
|
|
Reconciling Adjustments
|
|
Consolidated
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
7,332.4
|
|
|
$
|
3,450.0
|
|
|
$
|
196.5
|
|
|
$
|
1,399.3
|
|
|
$
|
16.4
|
|
|
$
|
—
|
|
|
$
|
12,394.6
|
|
Other Operating Segments
|
61.3
|
|
|
60.9
|
|
|
408.7
|
|
|
88.1
|
|
|
55.1
|
|
|
(674.1
|
)
|
|
—
|
|
|||||||
Total Revenues
|
$
|
7,393.7
|
|
|
$
|
3,510.9
|
|
|
$
|
605.2
|
|
|
$
|
1,487.4
|
|
|
$
|
71.5
|
|
|
$
|
(674.1
|
)
|
|
$
|
12,394.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income (Loss)
|
$
|
856.3
|
|
|
$
|
384.6
|
|
|
$
|
280.9
|
|
|
$
|
61.8
|
|
|
$
|
(17.1
|
)
|
|
$
|
—
|
|
|
$
|
1,566.5
|
|
|
|
September 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
|
|
$
|
46,739.8
|
|
|
$
|
19,283.9
|
|
|
$
|
9,700.4
|
|
|
$
|
1,661.6
|
|
|
$
|
421.7
|
|
|
$
|
(354.5
|
)
|
(b)
|
$
|
77,452.9
|
|
Accumulated Depreciation and Amortization
|
|
14,359.3
|
|
|
3,907.3
|
|
|
383.8
|
|
|
99.8
|
|
|
196.4
|
|
|
(186.4
|
)
|
(b)
|
18,760.2
|
|
|||||||
Total Property Plant and Equipment - Net
|
|
$
|
32,380.5
|
|
|
$
|
15,376.6
|
|
|
$
|
9,316.6
|
|
|
$
|
1,561.8
|
|
|
$
|
225.3
|
|
|
$
|
(168.1
|
)
|
(b)
|
$
|
58,692.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Assets
|
|
$
|
40,746.1
|
|
|
$
|
17,967.6
|
|
|
$
|
10,606.7
|
|
|
$
|
3,315.9
|
|
|
$
|
5,002.3
|
|
(c)
|
$
|
(3,737.9
|
)
|
(b) (d)
|
$
|
73,900.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Long-term Debt Due Within One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Nonaffiliated
|
|
$
|
687.4
|
|
|
$
|
391.5
|
|
|
$
|
249.0
|
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
(e)
|
$
|
—
|
|
|
$
|
1,327.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Affiliated
|
|
59.0
|
|
|
—
|
|
|
—
|
|
|
32.2
|
|
|
—
|
|
|
(91.2
|
)
|
|
—
|
|
|||||||
Nonaffiliated
|
|
12,161.1
|
|
|
5,868.9
|
|
|
3,426.9
|
|
|
(0.3
|
)
|
|
3,096.9
|
|
|
—
|
|
|
24,553.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Long-term Debt
|
|
$
|
12,907.5
|
|
|
$
|
6,260.4
|
|
|
$
|
3,675.9
|
|
|
$
|
31.9
|
|
|
$
|
3,096.7
|
|
(e)
|
$
|
(91.2
|
)
|
|
$
|
25,881.2
|
|
|
|
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, interest expense and other nonallocated costs.
|
(b)
|
Includes eliminations due to an intercompany finance lease.
|
(c)
|
Includes elimination of AEP Parent’s investments in wholly-owned subsidiary companies.
|
(d)
|
Reconciling Adjustments for Total Assets primarily include elimination of intercompany advances to affiliates and intercompany accounts receivable.
|
(e)
|
Amounts reflect the impact of fair value hedge accounting. See “Accounting for Fair Value Hedging Strategies” section of Note 10 for additional information.
|
|
Three Months Ended September 30, 2019
|
||||||||||||||
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
54.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
54.0
|
|
Sales to AEP Affiliates
|
205.7
|
|
|
—
|
|
|
—
|
|
|
205.7
|
|
||||
Other Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Revenues
|
$
|
259.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
259.7
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
$
|
0.4
|
|
|
$
|
32.3
|
|
|
$
|
(31.9
|
)
|
(a)
|
$
|
0.8
|
|
Interest Expense
|
26.4
|
|
|
31.9
|
|
|
(31.9
|
)
|
(a)
|
26.4
|
|
||||
Income Tax Expense
|
30.0
|
|
|
0.1
|
|
|
—
|
|
|
30.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
107.3
|
|
|
$
|
0.3
|
|
(b)
|
$
|
—
|
|
|
$
|
107.6
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
46.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46.0
|
|
Sales to AEP Affiliates
|
148.4
|
|
|
—
|
|
|
—
|
|
|
148.4
|
|
||||
Other Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Revenues
|
$
|
194.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
194.4
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
$
|
0.2
|
|
|
$
|
26.0
|
|
|
$
|
(25.7
|
)
|
(a)
|
$
|
0.5
|
|
Interest Expense
|
19.8
|
|
|
25.7
|
|
|
(25.7
|
)
|
(a)
|
19.8
|
|
||||
Income Tax Expense
|
18.4
|
|
|
(0.8
|
)
|
|
—
|
|
|
17.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
77.1
|
|
|
$
|
1.0
|
|
(b)
|
$
|
—
|
|
|
$
|
78.1
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
162.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
162.1
|
|
Sales to AEP Affiliates
|
608.0
|
|
|
—
|
|
|
—
|
|
|
608.0
|
|
||||
Other Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Revenues
|
$
|
770.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
770.1
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
$
|
0.8
|
|
|
$
|
89.7
|
|
|
$
|
(88.4
|
)
|
(a)
|
$
|
2.1
|
|
Interest Expense
|
69.5
|
|
|
88.4
|
|
|
(88.4
|
)
|
(a)
|
69.5
|
|
||||
Income Tax Expense
|
90.5
|
|
|
0.2
|
|
|
—
|
|
|
90.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
347.1
|
|
|
$
|
0.8
|
|
(b)
|
$
|
—
|
|
|
$
|
347.9
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Revenues from:
|
|
|
|
|
|
|
|
||||||||
External Customers
|
$
|
132.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
132.3
|
|
Sales to AEP Affiliates
|
453.8
|
|
|
—
|
|
|
—
|
|
|
453.8
|
|
||||
Other Revenues
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Total Revenues
|
$
|
586.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
586.2
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
$
|
0.4
|
|
|
$
|
76.2
|
|
|
$
|
(75.3
|
)
|
(a)
|
$
|
1.3
|
|
Interest Expense
|
60.7
|
|
|
75.3
|
|
|
(75.3
|
)
|
(a)
|
60.7
|
|
||||
Income Tax Expense
|
63.7
|
|
|
—
|
|
|
—
|
|
|
63.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
243.6
|
|
|
$
|
0.6
|
|
(b)
|
$
|
—
|
|
|
$
|
244.2
|
|
|
September 30, 2019
|
||||||||||||||
|
State Transcos
|
|
AEPTCo Parent
|
|
Reconciling Adjustments
|
|
AEPTCo
Consolidated |
||||||||
|
(in millions)
|
||||||||||||||
Total Transmission Property
|
$
|
9,267.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,267.4
|
|
Accumulated Depreciation and Amortization
|
368.8
|
|
|
—
|
|
|
—
|
|
|
368.8
|
|
||||
Total Transmission Property – Net
|
$
|
8,898.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,898.6
|
|
|
|
|
|
|
|
|
|
||||||||
Notes Receivable - Affiliated
|
$
|
—
|
|
|
$
|
3,511.9
|
|
|
$
|
(3,511.9
|
)
|
(c)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Total Assets
|
$
|
9,363.5
|
|
|
$
|
3,589.0
|
|
(d)
|
$
|
(3,599.8
|
)
|
(e)
|
$
|
9,352.7
|
|
|
|
|
|
|
|
|
|
||||||||
Total Long-term Debt
|
$
|
3,550.0
|
|
|
$
|
3,511.9
|
|
|
$
|
(3,550.0
|
)
|
(c)
|
$
|
3,511.9
|
|
|
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.
|
Primary Risk
Exposure
|
|
Unit of
Measure
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
|
|
(in millions)
|
||||||||||||||||||||||||||
Commodity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Power
|
|
MWhs
|
|
424.3
|
|
|
—
|
|
|
94.7
|
|
|
37.1
|
|
|
7.3
|
|
|
21.6
|
|
|
6.9
|
|
|||||||
Natural Gas
|
|
MMBtus
|
|
53.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.5
|
|
|||||||
Heating Oil and Gasoline
|
|
Gallons
|
|
8.4
|
|
|
1.8
|
|
|
1.6
|
|
|
0.8
|
|
|
2.0
|
|
|
0.8
|
|
|
0.9
|
|
|||||||
Interest Rate
|
|
USD
|
|
$
|
140.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest Rate
|
|
USD
|
|
$
|
600.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
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
|
|
$
|
337.0
|
|
|
$
|
16.5
|
|
|
$
|
1.9
|
|
|
$
|
355.4
|
|
|
$
|
(168.7
|
)
|
|
$
|
186.7
|
|
Long-term Risk Management Assets
|
|
319.0
|
|
|
10.0
|
|
|
25.3
|
|
|
354.3
|
|
|
(55.3
|
)
|
|
299.0
|
|
||||||
Total Assets
|
|
656.0
|
|
|
26.5
|
|
|
27.2
|
|
|
709.7
|
|
|
(224.0
|
)
|
|
485.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Risk Management Liabilities
|
|
213.4
|
|
|
36.4
|
|
|
0.2
|
|
|
250.0
|
|
|
(174.7
|
)
|
|
75.3
|
|
||||||
Long-term Risk Management Liabilities
|
|
281.7
|
|
|
87.4
|
|
|
—
|
|
|
369.1
|
|
|
(70.5
|
)
|
|
298.6
|
|
||||||
Total Liabilities
|
|
495.1
|
|
|
123.8
|
|
|
0.2
|
|
|
619.1
|
|
|
(245.2
|
)
|
|
373.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total MTM Derivative Contract Net Assets (Liabilities)
|
|
$
|
160.9
|
|
|
$
|
(97.3
|
)
|
|
$
|
27.0
|
|
|
$
|
90.6
|
|
|
$
|
21.2
|
|
|
$
|
111.8
|
|
|
|
Risk
Management Contracts |
|
Hedging Contracts
|
|
Gross Amounts
of Risk Management Assets/ Liabilities Recognized |
|
Gross
Amounts Offset in the Statement of Financial Position (b) |
|
Net Amounts of
Assets/Liabilities Presented in the Statement of Financial Position (c) |
||||||||||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Commodity (a)
|
|
Interest Rate (a)
|
|
|
|
|||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
Current Risk Management Assets
|
|
$
|
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
|
|
0.4
|
|
|
(0.1
|
)
|
|
0.3
|
|
|||
Long-term Risk Management Liabilities
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
Total Liabilities
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||
|
|
|
|
|
|
|
||||||
Total MTM Derivative Contract Net Liabilities
|
|
$
|
(0.4
|
)
|
|
$
|
—
|
|
|
$
|
(0.4
|
)
|
|
|
Risk Management
|
|
Gross Amounts Offset
|
|
Net Amounts of Assets/Liabilities
|
||||||
|
|
Contracts –
|
|
in the Statement of
|
|
Presented in the Statement of
|
||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Financial Position (b)
|
|
Financial Position (c)
|
||||||
|
|
(in millions)
|
||||||||||
Current Risk Management Assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
|
$
|
86.3
|
|
|
$
|
(29.8
|
)
|
|
$
|
56.5
|
|
Long-term Risk Management Assets
|
|
4.1
|
|
|
(3.9
|
)
|
|
0.2
|
|
|||
Total Assets
|
|
90.4
|
|
|
(33.7
|
)
|
|
56.7
|
|
|||
|
|
|
|
|
|
|
||||||
Current Risk Management Liabilities
|
|
32.3
|
|
|
(31.2
|
)
|
|
1.1
|
|
|||
Long-term Risk Management Liabilities
|
|
4.4
|
|
|
(4.1
|
)
|
|
0.3
|
|
|||
Total Liabilities
|
|
36.7
|
|
|
(35.3
|
)
|
|
1.4
|
|
|||
|
|
|
|
|
|
|
||||||
Total MTM Derivative Contract Net Assets
|
|
$
|
53.7
|
|
|
$
|
1.6
|
|
|
$
|
55.3
|
|
|
|
Risk Management
|
|
Gross Amounts Offset
|
|
Net Amounts of Assets/Liabilities
|
||||||
|
|
Contracts –
|
|
in the Statement of
|
|
Presented in the Statement of
|
||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Financial Position (b)
|
|
Financial Position (c)
|
||||||
|
|
(in millions)
|
||||||||||
Current Risk Management Assets
|
|
$
|
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
|
|
$
|
30.5
|
|
|
$
|
(20.0
|
)
|
|
$
|
10.5
|
|
Long-term Risk Management Assets
|
|
2.7
|
|
|
(2.6
|
)
|
|
0.1
|
|
|||
Total Assets
|
|
33.2
|
|
|
(22.6
|
)
|
|
10.6
|
|
|||
|
|
|
|
|
|
|
||||||
Current Risk Management Liabilities
|
|
21.0
|
|
|
(20.8
|
)
|
|
0.2
|
|
|||
Long-term Risk Management Liabilities
|
|
2.7
|
|
|
(2.7
|
)
|
|
—
|
|
|||
Total Liabilities
|
|
23.7
|
|
|
(23.5
|
)
|
|
0.2
|
|
|||
|
|
|
|
|
|
|
||||||
Total MTM Derivative Contract Net Assets
|
|
$
|
9.5
|
|
|
$
|
0.9
|
|
|
$
|
10.4
|
|
|
|
Risk Management
|
|
Gross Amounts Offset
|
|
Net Amounts of Assets/Liabilities
|
||||||
|
|
Contracts –
|
|
in the Statement of
|
|
Presented in the Statement of
|
||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Financial Position (b)
|
|
Financial Position (c)
|
||||||
|
|
(in millions)
|
||||||||||
Current Risk Management Assets
|
|
$
|
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
|
|
7.2
|
|
|
—
|
|
|
7.2
|
|
|||
Long-term Risk Management Liabilities
|
|
105.7
|
|
|
—
|
|
|
105.7
|
|
|||
Total Liabilities
|
|
112.9
|
|
|
—
|
|
|
112.9
|
|
|||
|
|
|
|
|
|
|
||||||
Total MTM Derivative Contract Net Liabilities
|
|
$
|
(112.9
|
)
|
|
$
|
—
|
|
|
$
|
(112.9
|
)
|
|
|
Risk Management
|
|
Gross Amounts Offset
|
|
Net Amounts of Assets/Liabilities
|
||||||
|
|
Contracts –
|
|
in the Statement of
|
|
Presented in the Statement of
|
||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Financial Position (b)
|
|
Financial Position (c)
|
||||||
|
|
(in millions)
|
||||||||||
Current Risk Management Assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
|
$
|
21.9
|
|
|
$
|
(0.2
|
)
|
|
$
|
21.7
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Assets
|
|
21.9
|
|
|
(0.2
|
)
|
|
21.7
|
|
|||
|
|
|
|
|
|
|
||||||
Current Risk Management Liabilities
|
|
0.5
|
|
|
(0.2
|
)
|
|
0.3
|
|
|||
Long-term Risk Management Liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Liabilities
|
|
0.5
|
|
|
(0.2
|
)
|
|
0.3
|
|
|||
|
|
|
|
|
|
|
||||||
Total MTM Derivative Contract Net Assets
|
|
$
|
21.4
|
|
|
$
|
—
|
|
|
$
|
21.4
|
|
|
|
Risk Management
|
|
Gross Amounts Offset
|
|
Net Amounts of Assets/Liabilities
|
||||||
|
|
Contracts –
|
|
in the Statement of
|
|
Presented in the Statement of
|
||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Financial Position (b)
|
|
Financial Position (c)
|
||||||
|
|
(in millions)
|
||||||||||
Current Risk Management Assets
|
|
$
|
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
|
|
$
|
9.8
|
|
|
$
|
(0.4
|
)
|
|
$
|
9.4
|
|
Long-term Risk Management Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Assets
|
|
9.8
|
|
|
(0.4
|
)
|
|
9.4
|
|
|||
|
|
|
|
|
|
|
||||||
Current Risk Management Liabilities
|
|
2.1
|
|
|
(0.4
|
)
|
|
1.7
|
|
|||
Long-term Risk Management Liabilities
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
|||
Total Liabilities
|
|
5.1
|
|
|
(0.4
|
)
|
|
4.7
|
|
|||
|
|
|
|
|
|
|
||||||
Total MTM Derivative Contract Net Assets
|
|
$
|
4.7
|
|
|
$
|
—
|
|
|
$
|
4.7
|
|
|
|
Risk Management
|
|
Gross Amounts Offset
|
|
Net Amounts of Assets/Liabilities
|
||||||
|
|
Contracts –
|
|
in the Statement of
|
|
Presented in the Statement of
|
||||||
Balance Sheet Location
|
|
Commodity (a)
|
|
Financial Position (b)
|
|
Financial Position (c)
|
||||||
|
|
(in millions)
|
||||||||||
Current Risk Management Assets
|
|
$
|
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
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Generation & Marketing Revenues
|
|
21.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchased Electricity for Resale
|
|
0.4
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other Operation
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|||||||
Maintenance
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Regulatory Assets (a)
|
|
(4.8
|
)
|
|
(0.2
|
)
|
|
0.2
|
|
|
—
|
|
|
(2.6
|
)
|
|
(0.1
|
)
|
|
(1.6
|
)
|
|||||||
Regulatory Liabilities (a)
|
|
26.3
|
|
|
—
|
|
|
10.0
|
|
|
3.2
|
|
|
—
|
|
|
4.3
|
|
|
4.5
|
|
|||||||
Total Gain (Loss) on Risk Management Contracts
|
|
$
|
43.1
|
|
|
$
|
(0.2
|
)
|
|
$
|
10.6
|
|
|
$
|
3.2
|
|
|
$
|
(2.7
|
)
|
|
$
|
4.1
|
|
|
$
|
2.9
|
|
Location of Gain (Loss)
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Vertically Integrated Utilities Revenues
|
|
$
|
(0.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Generation & Marketing Revenues
|
|
19.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchased Electricity for Resale
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other Operation
|
|
0.5
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
Maintenance
|
|
0.6
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
Regulatory Assets (a)
|
|
(14.0
|
)
|
|
—
|
|
|
—
|
|
|
(3.5
|
)
|
|
(9.3
|
)
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||||||
Regulatory Liabilities (a)
|
|
33.8
|
|
|
—
|
|
|
24.0
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
1.5
|
|
|||||||
Total Gain (Loss) on Risk Management Contracts
|
|
$
|
39.8
|
|
|
$
|
0.2
|
|
|
$
|
24.0
|
|
|
$
|
(3.4
|
)
|
|
$
|
(9.1
|
)
|
|
$
|
3.5
|
|
|
$
|
1.1
|
|
Location of Gain (Loss)
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Vertically Integrated Utilities Revenues
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Generation & Marketing Revenues
|
|
27.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||||
Purchased Electricity for Resale
|
|
1.6
|
|
|
—
|
|
|
1.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other Operation
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||||||
Maintenance
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||||
Regulatory Assets (a)
|
|
(19.4
|
)
|
|
0.3
|
|
|
0.4
|
|
|
0.2
|
|
|
(19.8
|
)
|
|
0.9
|
|
|
(0.4
|
)
|
|||||||
Regulatory Liabilities (a)
|
|
64.5
|
|
|
—
|
|
|
(5.3
|
)
|
|
17.2
|
|
|
—
|
|
|
26.6
|
|
|
22.9
|
|
|||||||
Total Gain (Loss) on Risk Management Contracts
|
|
$
|
73.7
|
|
|
$
|
0.1
|
|
|
$
|
(3.5
|
)
|
|
$
|
17.8
|
|
|
$
|
(20.1
|
)
|
|
$
|
27.4
|
|
|
$
|
22.4
|
|
Location of Gain (Loss)
|
|
AEP
|
|
AEP Texas
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Vertically Integrated Utilities Revenues
|
|
$
|
(9.4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Generation & Marketing Revenues
|
|
31.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Electric Generation, Transmission and Distribution Revenues
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(7.8
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||||
Purchased Electricity for Resale
|
|
8.3
|
|
|
—
|
|
|
7.3
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other Operation
|
|
1.3
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|||||||
Maintenance
|
|
1.5
|
|
|
0.3
|
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|||||||
Regulatory Assets (a)
|
|
29.2
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
31.8
|
|
|
(0.6
|
)
|
|
(1.7
|
)
|
|||||||
Regulatory Liabilities (a)
|
|
206.2
|
|
|
—
|
|
|
127.3
|
|
|
11.7
|
|
|
0.6
|
|
|
34.8
|
|
|
7.6
|
|
|||||||
Total Gain on Risk Management Contracts
|
|
$
|
268.8
|
|
|
$
|
0.6
|
|
|
$
|
133.8
|
|
|
$
|
4.8
|
|
|
$
|
33.0
|
|
|
$
|
34.6
|
|
|
$
|
6.4
|
|
(a)
|
Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.
|
(a)
|
Amounts included on the balance sheets within Long-term Debt Due within One Year and Long-term Debt, respectively.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Gain (Loss) on Interest Rate Contracts:
|
|
|
|
|
|
|
|
||||||||
Gain (Loss) on Fair Value Hedging Instruments (a)
|
$
|
13.2
|
|
|
$
|
(6.3
|
)
|
|
$
|
42.5
|
|
|
$
|
(28.1
|
)
|
Gain (Loss) on Fair Value Portion of Long-term Debt (a)
|
(13.2
|
)
|
|
6.3
|
|
|
(42.5
|
)
|
|
28.1
|
|
(a)
|
Gain (Loss) is included in Interest Expense on the statements of income.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Commodity
|
|
Interest Rate
|
|
Commodity
|
|
Interest Rate
|
||||||||
|
|
(in millions)
|
||||||||||||||
AOCI Gain (Loss) Net of Tax
|
|
$
|
(82.2
|
)
|
|
$
|
(16.7
|
)
|
(a)
|
$
|
(23.0
|
)
|
|
$
|
(12.6
|
)
|
Portion Expected to be Reclassed to Net Income During the Next Twelve Months
|
|
(24.2
|
)
|
|
(3.7
|
)
|
|
10.4
|
|
|
(1.1
|
)
|
(a)
|
Includes $6 million related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC. See “Sempra Renewables LLC” section of Note 14 for additional information.
|
|
|
September 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
|
|
$
|
(3.6
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(4.4
|
)
|
|
$
|
(1.1
|
)
|
APCo
|
|
1.1
|
|
|
0.9
|
|
|
1.8
|
|
|
0.9
|
|
||||
I&M
|
|
(10.3
|
)
|
|
(1.6
|
)
|
|
(11.5
|
)
|
|
(1.6
|
)
|
||||
OPCo
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
||||
PSO
|
|
1.4
|
|
|
1.0
|
|
|
2.1
|
|
|
1.0
|
|
||||
SWEPCo
|
|
(2.2
|
)
|
|
(1.5
|
)
|
|
(3.3
|
)
|
|
(1.5
|
)
|
|
|
September 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
|
|
$
|
261.0
|
|
|
$
|
3.4
|
|
|
$
|
230.7
|
|
APCo
|
|
3.9
|
|
|
—
|
|
|
0.2
|
|
|||
I&M
|
|
2.3
|
|
|
—
|
|
|
0.1
|
|
|||
SWEPCo
|
|
4.7
|
|
|
—
|
|
|
2.8
|
|
|
|
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
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
Company
|
|
Book Value
|
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
||||||||
|
|
(in millions)
|
||||||||||||||
AEP (a)
|
|
$
|
25,881.2
|
|
|
$
|
29,729.1
|
|
|
$
|
23,346.7
|
|
|
$
|
24,093.9
|
|
AEP Texas
|
|
4,146.5
|
|
|
4,631.5
|
|
|
3,881.3
|
|
|
3,964.6
|
|
||||
AEPTCo
|
|
3,511.9
|
|
|
3,984.9
|
|
|
2,823.0
|
|
|
2,782.4
|
|
||||
APCo
|
|
4,362.9
|
|
|
5,370.2
|
|
|
4,062.6
|
|
|
4,473.3
|
|
||||
I&M
|
|
3,031.5
|
|
|
3,497.3
|
|
|
3,035.4
|
|
|
3,070.2
|
|
||||
OPCo
|
|
2,113.9
|
|
|
2,618.5
|
|
|
1,716.6
|
|
|
1,919.7
|
|
||||
PSO
|
|
1,386.4
|
|
|
1,632.9
|
|
|
1,287.0
|
|
|
1,361.9
|
|
||||
SWEPCo
|
|
2,656.9
|
|
|
2,983.0
|
|
|
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 $887 million as of September 30, 2019. See “Equity Units” section of Note 13 for additional information.
|
|
|
September 30, 2019
|
||||||||||||||
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
Other Temporary Investments
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
|
(in millions)
|
||||||||||||||
Restricted Cash and Other Cash Deposits (a)
|
|
$
|
160.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160.1
|
|
Fixed Income Securities – Mutual Funds (b)
|
|
133.4
|
|
|
—
|
|
|
(0.2
|
)
|
|
133.2
|
|
||||
Equity Securities – Mutual Funds
|
|
28.5
|
|
|
17.6
|
|
|
—
|
|
|
46.1
|
|
||||
Total Other Temporary Investments
|
|
$
|
322.0
|
|
|
$
|
17.6
|
|
|
$
|
(0.2
|
)
|
|
$
|
339.4
|
|
|
|
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 September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Proceeds from Investment Sales
|
$
|
2.8
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
|
$
|
—
|
|
Purchases of Investments
|
26.9
|
|
|
0.8
|
|
|
35.8
|
|
|
2.2
|
|
||||
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.
|
|
September 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
|
$
|
17.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States Government
|
1,047.4
|
|
|
67.8
|
|
|
(5.8
|
)
|
|
996.1
|
|
|
26.7
|
|
|
(7.1
|
)
|
||||||
Corporate Debt
|
68.6
|
|
|
6.1
|
|
|
(1.7
|
)
|
|
52.4
|
|
|
1.1
|
|
|
(1.9
|
)
|
||||||
State and Local Government
|
7.5
|
|
|
0.7
|
|
|
(0.2
|
)
|
|
8.6
|
|
|
0.6
|
|
|
(0.2
|
)
|
||||||
Subtotal Fixed Income Securities
|
1,123.5
|
|
|
74.6
|
|
|
(7.7
|
)
|
|
1,057.1
|
|
|
28.4
|
|
|
(9.2
|
)
|
||||||
Equity Securities - Domestic (a)
|
1,694.3
|
|
|
1,037.7
|
|
|
—
|
|
|
1,395.3
|
|
|
766.3
|
|
|
—
|
|
||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
$
|
2,835.2
|
|
|
$
|
1,112.3
|
|
|
$
|
(7.7
|
)
|
|
$
|
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 $9 million and $18 million as of September 30, 2019 and December 31, 2018, respectively. AEP adopted ASU 2016-01 during the first quarter of 2018 by means of a modified retrospective approach. Due to the adoption of the ASU, Other-Than-Temporary Impairments are no longer applicable to Equity Securities with readily determinable fair values.
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
Proceeds from Investment Sales
|
|
$
|
671.9
|
|
|
$
|
513.1
|
|
|
$
|
871.4
|
|
|
$
|
1,550.9
|
|
Purchases of Investments
|
|
689.1
|
|
|
521.2
|
|
|
915.7
|
|
|
1,589.0
|
|
||||
Gross Realized Gains on Investment Sales
|
|
10.9
|
|
|
3.9
|
|
|
26.6
|
|
|
27.7
|
|
||||
Gross Realized Losses on Investment Sales
|
|
7.1
|
|
|
3.5
|
|
|
15.1
|
|
|
22.2
|
|
|
Fair Value of Fixed
|
||
|
Income Securities
|
||
|
(in millions)
|
||
Within 1 year
|
$
|
334.9
|
|
After 1 year through 5 years
|
390.9
|
|
|
After 5 years through 10 years
|
199.2
|
|
|
After 10 years
|
198.5
|
|
|
Total
|
$
|
1,123.5
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Other
|
|
Total
|
||||||||||
Assets:
|
|
(in millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Temporary Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restricted Cash and Other Cash Deposits (a)
|
|
$
|
152.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7.2
|
|
|
$
|
160.1
|
|
Fixed Income Securities – Mutual Funds
|
|
133.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133.2
|
|
|||||
Equity Securities – Mutual Funds (b)
|
|
46.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46.1
|
|
|||||
Total Other Temporary Investments
|
|
332.2
|
|
|
—
|
|
|
—
|
|
|
7.2
|
|
|
339.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c) (d)
|
|
5.6
|
|
|
228.2
|
|
|
407.7
|
|
|
(195.3
|
)
|
|
446.2
|
|
|||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity Hedges (c)
|
|
—
|
|
|
17.6
|
|
|
2.9
|
|
|
(8.2
|
)
|
|
12.3
|
|
|||||
Interest Rate Hedges
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|||||
Fair Value Hedges
|
|
—
|
|
|
25.3
|
|
|
—
|
|
|
—
|
|
|
25.3
|
|
|||||
Total Risk Management Assets
|
|
5.6
|
|
|
273.0
|
|
|
410.6
|
|
|
(203.5
|
)
|
|
485.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents (e)
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
|
17.4
|
|
|||||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States Government
|
|
—
|
|
|
1,047.4
|
|
|
—
|
|
|
—
|
|
|
1,047.4
|
|
|||||
Corporate Debt
|
|
—
|
|
|
68.6
|
|
|
—
|
|
|
—
|
|
|
68.6
|
|
|||||
State and Local Government
|
|
—
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
|||||
Subtotal Fixed Income Securities
|
|
—
|
|
|
1,123.5
|
|
|
—
|
|
|
—
|
|
|
1,123.5
|
|
|||||
Equity Securities – Domestic (b)
|
|
1,694.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,694.3
|
|
|||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
1,703.7
|
|
|
1,123.5
|
|
|
—
|
|
|
8.0
|
|
|
2,835.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
|
$
|
2,041.5
|
|
|
$
|
1,396.5
|
|
|
$
|
410.6
|
|
|
$
|
(188.3
|
)
|
|
$
|
3,660.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c) (d)
|
|
$
|
5.1
|
|
|
$
|
243.9
|
|
|
$
|
231.6
|
|
|
$
|
(216.5
|
)
|
|
$
|
264.1
|
|
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity Hedges (c)
|
|
—
|
|
|
49.1
|
|
|
68.7
|
|
|
(8.2
|
)
|
|
109.6
|
|
|||||
Fair Value Hedges
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
Total Risk Management Liabilities
|
|
$
|
5.1
|
|
|
$
|
293.2
|
|
|
$
|
300.3
|
|
|
$
|
(224.7
|
)
|
|
$
|
373.9
|
|
|
|
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
|
|
$
|
114.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c)
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
|
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
|
|
$
|
17.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c) (g)
|
|
—
|
|
|
31.4
|
|
|
57.3
|
|
|
(32.0
|
)
|
|
56.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
|
$
|
17.1
|
|
|
$
|
31.4
|
|
|
$
|
57.3
|
|
|
$
|
(32.0
|
)
|
|
$
|
73.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
33.2
|
|
|
$
|
1.8
|
|
|
$
|
(33.6
|
)
|
|
$
|
1.4
|
|
|
|
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)
|
|
$
|
—
|
|
|
$
|
21.9
|
|
|
$
|
10.2
|
|
|
$
|
(21.5
|
)
|
|
$
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents (e)
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
|
17.4
|
|
|||||
Fixed Income Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States Government
|
|
—
|
|
|
1,047.4
|
|
|
—
|
|
|
—
|
|
|
1,047.4
|
|
|||||
Corporate Debt
|
|
—
|
|
|
68.6
|
|
|
—
|
|
|
—
|
|
|
68.6
|
|
|||||
State and Local Government
|
|
—
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
|||||
Subtotal Fixed Income Securities
|
|
—
|
|
|
1,123.5
|
|
|
—
|
|
|
—
|
|
|
1,123.5
|
|
|||||
Equity Securities - Domestic (b)
|
|
1,694.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,694.3
|
|
|||||
Total Spent Nuclear Fuel and Decommissioning Trusts
|
|
1,703.7
|
|
|
1,123.5
|
|
|
—
|
|
|
8.0
|
|
|
2,835.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
|
$
|
1,703.7
|
|
|
$
|
1,145.4
|
|
|
$
|
10.2
|
|
|
$
|
(13.5
|
)
|
|
$
|
2,845.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
21.3
|
|
|
$
|
1.3
|
|
|
$
|
(22.4
|
)
|
|
$
|
0.2
|
|
|
|
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)
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
112.5
|
|
|
$
|
—
|
|
|
$
|
112.9
|
|
|
|
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)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22.0
|
|
|
$
|
(0.3
|
)
|
|
$
|
21.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Management Commodity Contracts (c) (g)
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
(0.3
|
)
|
|
$
|
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 September 30, 2019 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 2 matures $(6) million in 2019, $(8) million in periods 2020-2022 and $(1) million in periods 2025-2032; Level 3 matures $40 million in 2019, $114 million in periods 2020-2022, $26 million in periods 2023-2024 and $(4) million in periods 2025-2032. Risk management commodity contracts are substantially comprised of power contracts.
|
(e)
|
Amounts in “Other’’ column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.
|
(f)
|
The December 31, 2018 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 2 matures $(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 September 30, 2019
|
|
AEP
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
Balance as of June 30, 2019
|
|
$
|
112.7
|
|
|
$
|
68.5
|
|
|
$
|
12.3
|
|
|
$
|
(111.5
|
)
|
|
$
|
27.8
|
|
|
$
|
8.5
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
30.2
|
|
|
13.8
|
|
|
3.1
|
|
|
—
|
|
|
4.1
|
|
|
3.6
|
|
||||||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
22.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
(67.4
|
)
|
|
(28.1
|
)
|
|
(7.2
|
)
|
|
1.1
|
|
|
(11.2
|
)
|
|
(6.7
|
)
|
||||||
Transfers into Level 3 (c) (d)
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (d)
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
(0.3
|
)
|
|
1.3
|
|
|
0.7
|
|
|
(2.1
|
)
|
|
0.9
|
|
|
(0.5
|
)
|
||||||
Balance as of September 30, 2019
|
|
$
|
110.3
|
|
|
$
|
55.5
|
|
|
$
|
8.9
|
|
|
$
|
(112.5
|
)
|
|
$
|
21.6
|
|
|
$
|
4.9
|
|
Three Months Ended September 30, 2018
|
|
AEP
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||
Balance as of June 30, 2018
|
|
$
|
172.3
|
|
|
$
|
60.0
|
|
|
$
|
13.2
|
|
|
$
|
(86.9
|
)
|
|
$
|
24.3
|
|
|
$
|
4.9
|
|
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
|
|
19.9
|
|
|
9.0
|
|
|
1.9
|
|
|
—
|
|
|
3.7
|
|
|
1.7
|
|
||||||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
10.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
(56.0
|
)
|
|
(19.8
|
)
|
|
(5.5
|
)
|
|
0.6
|
|
|
(10.8
|
)
|
|
(2.7
|
)
|
||||||
Transfers into Level 3 (c) (d)
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (d)
|
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
12.0
|
|
|
17.3
|
|
|
(0.2
|
)
|
|
(8.9
|
)
|
|
0.4
|
|
|
(0.4
|
)
|
||||||
Balance as of September 30, 2018
|
|
$
|
161.2
|
|
|
$
|
66.5
|
|
|
$
|
9.4
|
|
|
$
|
(95.2
|
)
|
|
$
|
17.6
|
|
|
$
|
3.5
|
|
Nine Months Ended September 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)
|
|
14.6
|
|
|
(14.1
|
)
|
|
4.6
|
|
|
(0.9
|
)
|
|
13.5
|
|
|
6.0
|
|
||||||
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
|
|
32.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
(42.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
(114.6
|
)
|
|
(41.9
|
)
|
|
(12.6
|
)
|
|
4.6
|
|
|
(23.0
|
)
|
|
(10.1
|
)
|
||||||
Transfers into Level 3 (c) (d)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (d)
|
|
1.4
|
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
87.2
|
|
|
54.4
|
|
|
8.4
|
|
|
(16.8
|
)
|
|
21.6
|
|
|
6.7
|
|
||||||
Balance as of September 30, 2019
|
|
$
|
110.3
|
|
|
$
|
55.5
|
|
|
$
|
8.9
|
|
|
$
|
(112.5
|
)
|
|
$
|
21.6
|
|
|
$
|
4.9
|
|
Nine Months Ended September 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)
|
|
150.9
|
|
|
104.4
|
|
|
14.7
|
|
|
1.3
|
|
|
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)
|
|
9.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income
|
|
16.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
(212.3
|
)
|
|
(128.3
|
)
|
|
(21.9
|
)
|
|
3.0
|
|
|
(24.3
|
)
|
|
(1.3
|
)
|
||||||
Transfers into Level 3 (c) (d)
|
|
16.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (d)
|
|
(2.5
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in Fair Value Allocated to Regulated Jurisdictions (e)
|
|
142.4
|
|
|
65.7
|
|
|
9.3
|
|
|
32.9
|
|
|
17.6
|
|
|
3.7
|
|
||||||
Balance as of September 30, 2018
|
|
$
|
161.2
|
|
|
$
|
66.5
|
|
|
$
|
9.4
|
|
|
$
|
(95.2
|
)
|
|
$
|
17.6
|
|
|
$
|
3.5
|
|
(a)
|
Included in revenues on the statements of income.
|
(b)
|
Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
|
(c)
|
Represents existing assets or liabilities that were previously categorized as Level 2.
|
(d)
|
Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
|
(e)
|
Relates to the net gains (losses) of those contracts that are not reflected on the statements of income. These net gains (losses) are recorded as regulatory assets/liabilities or accounts payable.
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||||
|
Fair Value
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
|||||||||||||
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Energy Contracts
|
$
|
298.8
|
|
|
$
|
286.8
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
$
|
(0.05
|
)
|
|
$
|
180.10
|
|
|
$
|
31.34
|
|
Natural Gas Contracts
|
—
|
|
|
4.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (b)
|
|
1.96
|
|
|
2.62
|
|
|
2.25
|
|
|||||
FTRs
|
111.8
|
|
|
9.0
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
(10.40
|
)
|
|
11.65
|
|
|
0.54
|
|
|||||
Total
|
$
|
410.6
|
|
|
$
|
300.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
3.6
|
|
|
$
|
1.1
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
12.93
|
|
|
$
|
59.25
|
|
|
$
|
31.28
|
|
FTRs
|
53.7
|
|
|
0.7
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
(0.91
|
)
|
|
10.14
|
|
|
1.63
|
|
|||||
Total
|
$
|
57.3
|
|
|
$
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
2.2
|
|
|
$
|
0.7
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
12.93
|
|
|
$
|
59.25
|
|
|
$
|
31.28
|
|
FTRs
|
8.0
|
|
|
0.6
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
(1.76
|
)
|
|
7.26
|
|
|
0.87
|
|
|||||
Total
|
$
|
10.2
|
|
|
$
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
—
|
|
|
$
|
112.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
27.47
|
|
|
$
|
65.81
|
|
|
$
|
40.30
|
|
|
|
|
|
|
|
|
Significant
|
|
Input/Range
|
||||||||||||||
|
Fair Value
|
|
Valuation
|
|
Unobservable
|
|
|
|
|
|
Weighted
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Technique
|
|
Input (a)
|
|
Low
|
|
High
|
|
Average
|
||||||||||
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
FTRs
|
$
|
22.0
|
|
|
$
|
0.4
|
|
|
Discounted Cash Flow
|
|
Forward Market Price
|
|
$
|
(6.87
|
)
|
|
$
|
0.93
|
|
|
$
|
(2.19
|
)
|
|
|
|
|
|
|
|
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
|
$
|
—
|
|
|
$
|
4.5
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (b)
|
|
$
|
1.96
|
|
|
$
|
2.62
|
|
|
$
|
2.25
|
|
FTRs
|
9.8
|
|
|
0.4
|
|
|
Discounted Cash Flow
|
|
Forward Market Price (a)
|
|
(6.87
|
)
|
|
0.93
|
|
|
(2.19
|
)
|
|||||
Total
|
$
|
9.8
|
|
|
$
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Operating Lease Cost
|
|
$
|
64.4
|
|
|
$
|
4.0
|
|
|
$
|
0.6
|
|
|
$
|
4.9
|
|
|
$
|
23.7
|
|
|
$
|
4.9
|
|
|
$
|
1.5
|
|
|
$
|
1.8
|
|
Finance Lease Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of Right-of-Use Assets
|
|
16.5
|
|
|
1.5
|
|
|
0.1
|
|
|
2.0
|
|
|
1.6
|
|
|
1.1
|
|
|
0.8
|
|
|
2.8
|
|
||||||||
Interest on Lease Liabilities
|
|
4.1
|
|
|
0.3
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
0.2
|
|
|
0.1
|
|
|
0.7
|
|
||||||||
Total Lease Rental Costs (a)
|
|
$
|
85.0
|
|
|
$
|
5.8
|
|
|
$
|
0.7
|
|
|
$
|
7.7
|
|
|
$
|
26.1
|
|
|
$
|
6.2
|
|
|
$
|
2.4
|
|
|
$
|
5.3
|
|
Nine Months Ended September 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Operating Lease Cost
|
|
$
|
200.3
|
|
|
$
|
12.2
|
|
|
$
|
1.7
|
|
|
$
|
14.5
|
|
|
$
|
70.0
|
|
|
$
|
13.8
|
|
|
$
|
5.0
|
|
|
$
|
5.7
|
|
Finance Lease Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of Right-of-Use Assets
|
|
45.0
|
|
|
3.8
|
|
|
0.1
|
|
|
5.0
|
|
|
4.2
|
|
|
2.6
|
|
|
2.2
|
|
|
8.2
|
|
||||||||
Interest on Lease Liabilities
|
|
12.2
|
|
|
1.0
|
|
|
—
|
|
|
2.2
|
|
|
2.3
|
|
|
0.5
|
|
|
0.4
|
|
|
2.2
|
|
||||||||
Total Lease Rental Costs (a)
|
|
$
|
257.5
|
|
|
$
|
17.0
|
|
|
$
|
1.8
|
|
|
$
|
21.7
|
|
|
$
|
76.5
|
|
|
$
|
16.9
|
|
|
$
|
7.6
|
|
|
$
|
16.1
|
|
(a)
|
Excludes variable and short-term lease costs, which were immaterial for the three and nine months ended September 30, 2019.
|
September 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||
Weighted-Average Remaining Lease Term (years):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Leases
|
|
5.31
|
|
|
7.05
|
|
|
2.43
|
|
|
6.25
|
|
|
4.05
|
|
|
8.10
|
|
|
7.06
|
|
|
6.63
|
|
Finance Leases
|
|
5.87
|
|
|
6.86
|
|
|
0.58
|
|
|
6.33
|
|
|
6.72
|
|
|
6.58
|
|
|
6.24
|
|
|
5.34
|
|
Weighted-Average Discount Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Leases
|
|
3.61
|
%
|
|
3.79
|
%
|
|
3.13
|
%
|
|
3.67
|
%
|
|
3.45
|
%
|
|
3.79
|
%
|
|
3.68
|
%
|
|
3.80
|
%
|
Finance Leases
|
|
6.02
|
%
|
|
4.71
|
%
|
|
9.33
|
%
|
|
8.19
|
%
|
|
8.61
|
%
|
|
4.66
|
%
|
|
4.73
|
%
|
|
5.03
|
%
|
Nine Months Ended September 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating Cash Flows Used for Operating Leases
|
|
$
|
163.6
|
|
|
$
|
11.4
|
|
|
$
|
1.7
|
|
|
$
|
14.1
|
|
|
$
|
52.5
|
|
|
$
|
13.8
|
|
|
$
|
4.9
|
|
|
$
|
5.3
|
|
Operating Cash Flows Used for Finance Leases
|
|
11.0
|
|
|
1.0
|
|
|
—
|
|
|
2.2
|
|
|
2.2
|
|
|
0.5
|
|
|
0.4
|
|
|
1.1
|
|
||||||||
Financing Cash Flows Used for Finance Leases
|
|
44.5
|
|
|
3.8
|
|
|
—
|
|
|
5.0
|
|
|
4.0
|
|
|
2.6
|
|
|
2.2
|
|
|
8.1
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-cash Acquisitions Under Operating Leases
|
|
$
|
108.9
|
|
|
$
|
12.7
|
|
|
$
|
—
|
|
|
$
|
8.6
|
|
|
$
|
16.6
|
|
|
$
|
34.6
|
|
|
$
|
7.3
|
|
|
$
|
10.6
|
|
September 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Property, Plant and Equipment Under Finance Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Generation
|
|
$
|
134.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41.3
|
|
|
$
|
28.5
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
|
$
|
34.2
|
|
Other Property, Plant and Equipment
|
|
335.9
|
|
|
41.9
|
|
|
0.2
|
|
|
18.4
|
|
|
37.1
|
|
|
24.7
|
|
|
20.7
|
|
|
50.0
|
|
||||||||
Total Property, Plant and Equipment
|
|
470.8
|
|
|
41.9
|
|
|
0.2
|
|
|
59.7
|
|
|
65.6
|
|
|
24.7
|
|
|
23.3
|
|
|
84.2
|
|
||||||||
Accumulated Amortization
|
|
162.7
|
|
|
10.9
|
|
|
0.2
|
|
|
17.8
|
|
|
22.8
|
|
|
6.6
|
|
|
9.1
|
|
|
26.2
|
|
||||||||
Net Property, Plant and Equipment Under Finance Leases
|
|
$
|
308.1
|
|
|
$
|
31.0
|
|
|
$
|
—
|
|
|
$
|
41.9
|
|
|
$
|
42.8
|
|
|
$
|
18.1
|
|
|
$
|
14.2
|
|
|
$
|
58.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Obligations Under Finance Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncurrent Liability
|
|
$
|
254.0
|
|
|
$
|
25.8
|
|
|
$
|
—
|
|
|
$
|
35.2
|
|
|
$
|
37.1
|
|
|
$
|
14.5
|
|
|
$
|
11.0
|
|
|
$
|
50.5
|
|
Liability Due Within One Year
|
|
61.4
|
|
|
5.2
|
|
|
—
|
|
|
6.7
|
|
|
6.0
|
|
|
3.6
|
|
|
3.2
|
|
|
11.2
|
|
||||||||
Total Obligations Under Finance Leases
|
|
$
|
315.4
|
|
|
$
|
31.0
|
|
|
$
|
—
|
|
|
$
|
41.9
|
|
|
$
|
43.1
|
|
|
$
|
18.1
|
|
|
$
|
14.2
|
|
|
$
|
61.7
|
|
September 30, 2019
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Operating Lease Assets
|
|
$
|
990.0
|
|
|
$
|
82.0
|
|
|
$
|
4.6
|
|
|
$
|
79.4
|
|
|
$
|
295.3
|
|
|
$
|
88.2
|
|
|
$
|
37.1
|
|
|
$
|
40.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Obligations Under Operating Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncurrent Liability
|
|
$
|
801.1
|
|
|
$
|
71.1
|
|
|
$
|
2.2
|
|
|
$
|
64.8
|
|
|
$
|
234.0
|
|
|
$
|
75.9
|
|
|
$
|
31.2
|
|
|
$
|
32.5
|
|
Liability Due Within One Year
|
|
228.8
|
|
|
11.7
|
|
|
2.3
|
|
|
15.3
|
|
|
82.0
|
|
|
12.8
|
|
|
6.0
|
|
|
5.9
|
|
||||||||
Total Obligations Under Operating Leases
|
|
$
|
1,029.9
|
|
|
$
|
82.8
|
|
|
$
|
4.5
|
|
|
$
|
80.1
|
|
|
$
|
316.0
|
|
|
$
|
88.7
|
|
|
$
|
37.2
|
|
|
$
|
38.4
|
|
Finance Leases
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Year 1
|
|
$
|
76.8
|
|
|
$
|
6.6
|
|
|
$
|
—
|
|
|
$
|
9.6
|
|
|
$
|
9.0
|
|
|
$
|
4.3
|
|
|
$
|
3.8
|
|
|
$
|
13.0
|
|
Year 2
|
|
67.0
|
|
|
6.1
|
|
|
—
|
|
|
8.8
|
|
|
8.2
|
|
|
3.9
|
|
|
3.1
|
|
|
11.6
|
|
||||||||
Year 3
|
|
58.0
|
|
|
5.3
|
|
|
—
|
|
|
8.1
|
|
|
7.6
|
|
|
3.2
|
|
|
2.3
|
|
|
10.6
|
|
||||||||
Year 4
|
|
49.0
|
|
|
4.9
|
|
|
—
|
|
|
7.5
|
|
|
7.1
|
|
|
2.5
|
|
|
2.1
|
|
|
9.5
|
|
||||||||
Year 5
|
|
50.0
|
|
|
4.1
|
|
|
—
|
|
|
7.0
|
|
|
6.7
|
|
|
2.1
|
|
|
1.7
|
|
|
14.8
|
|
||||||||
Later Years
|
|
76.1
|
|
|
9.8
|
|
|
—
|
|
|
11.3
|
|
|
20.9
|
|
|
5.3
|
|
|
3.7
|
|
|
7.5
|
|
||||||||
Total Future Minimum Lease Payments
|
|
376.9
|
|
|
36.8
|
|
|
—
|
|
|
52.3
|
|
|
59.5
|
|
|
21.3
|
|
|
16.7
|
|
|
67.0
|
|
||||||||
Less Imputed Interest
|
|
61.5
|
|
|
5.8
|
|
|
—
|
|
|
10.4
|
|
|
16.4
|
|
|
3.2
|
|
|
2.5
|
|
|
5.3
|
|
||||||||
Estimated Present Value of Future Minimum Lease Payments
|
|
$
|
315.4
|
|
|
$
|
31.0
|
|
|
$
|
—
|
|
|
$
|
41.9
|
|
|
$
|
43.1
|
|
|
$
|
18.1
|
|
|
$
|
14.2
|
|
|
$
|
61.7
|
|
Operating Leases
|
|
AEP
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||||||
Year 1
|
|
$
|
267.5
|
|
|
$
|
15.7
|
|
|
$
|
2.4
|
|
|
$
|
18.4
|
|
|
$
|
92.2
|
|
|
$
|
16.6
|
|
|
$
|
7.4
|
|
|
$
|
8.4
|
|
Year 2
|
|
252.4
|
|
|
15.2
|
|
|
1.5
|
|
|
16.4
|
|
|
88.4
|
|
|
13.9
|
|
|
6.6
|
|
|
8.2
|
|
||||||||
Year 3
|
|
239.9
|
|
|
14.1
|
|
|
0.7
|
|
|
14.7
|
|
|
86.3
|
|
|
13.3
|
|
|
6.0
|
|
|
7.5
|
|
||||||||
Year 4
|
|
154.2
|
|
|
13.0
|
|
|
0.3
|
|
|
12.5
|
|
|
48.0
|
|
|
12.4
|
|
|
5.5
|
|
|
7.2
|
|
||||||||
Year 5
|
|
63.6
|
|
|
11.4
|
|
|
—
|
|
|
9.8
|
|
|
7.3
|
|
|
10.8
|
|
|
5.0
|
|
|
5.0
|
|
||||||||
Later Years
|
|
184.1
|
|
|
27.8
|
|
|
—
|
|
|
20.1
|
|
|
22.0
|
|
|
38.3
|
|
|
12.7
|
|
|
12.4
|
|
||||||||
Total Future Minimum Lease Payments
|
|
1,161.7
|
|
|
97.2
|
|
|
4.9
|
|
|
91.9
|
|
|
344.2
|
|
|
105.3
|
|
|
43.2
|
|
|
48.7
|
|
||||||||
Less Imputed Interest
|
|
131.8
|
|
|
14.4
|
|
|
0.4
|
|
|
11.8
|
|
|
28.2
|
|
|
16.6
|
|
|
6.0
|
|
|
10.3
|
|
||||||||
Estimated Present Value of Future Minimum Lease Payments
|
|
$
|
1,029.9
|
|
|
$
|
82.8
|
|
|
$
|
4.5
|
|
|
$
|
80.1
|
|
|
$
|
316.0
|
|
|
$
|
88.7
|
|
|
$
|
37.2
|
|
|
$
|
38.4
|
|
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
|
|
$
|
46.6
|
|
AEP Texas
|
|
11.2
|
|
|
APCo
|
|
6.3
|
|
|
I&M
|
|
4.0
|
|
|
OPCo
|
|
7.4
|
|
|
PSO
|
|
4.3
|
|
|
SWEPCo
|
|
4.7
|
|
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
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in millions)
|
||||||
Senior Unsecured Notes
|
|
$
|
20,829.2
|
|
|
$
|
18,903.3
|
|
Pollution Control Bonds
|
|
1,516.5
|
|
|
1,643.8
|
|
||
Notes Payable
|
|
189.1
|
|
|
204.7
|
|
||
Securitization Bonds
|
|
1,059.4
|
|
|
1,111.4
|
|
||
Spent Nuclear Fuel Obligation (a)
|
|
278.5
|
|
|
273.6
|
|
||
Junior Subordinated Notes (b)
|
|
786.8
|
|
|
—
|
|
||
Other Long-term Debt
|
|
1,221.7
|
|
|
1,209.9
|
|
||
Total Long-term Debt Outstanding
|
|
25,881.2
|
|
|
23,346.7
|
|
||
Long-term Debt Due Within One Year
|
|
1,327.7
|
|
|
1,698.5
|
|
||
Long-term Debt
|
|
$
|
24,553.5
|
|
|
$
|
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 $322 million and $317 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Spent Nuclear Fuel and Decommissioning Trusts on the balance sheets.
|
(b)
|
See “Equity Units” section below for additional information.
|
|
|
|
|
Principal
|
|
Interest
|
|
|
||
Company
|
|
Type of Debt
|
|
Amount (a)
|
|
Rate
|
|
Due Date
|
||
Issuances:
|
|
|
|
(in millions)
|
|
(%)
|
|
|
||
AEP
|
|
Junior Subordinated Notes (b)
|
|
$
|
805.0
|
|
|
3.40
|
|
2024
|
AEP Texas
|
|
Securitization Bonds
|
|
117.6
|
|
|
2.06
|
|
2025
|
|
AEP Texas
|
|
Securitization Bonds
|
|
117.6
|
|
|
2.29
|
|
2029
|
|
AEP Texas
|
|
Pollution Control Bonds
|
|
100.6
|
|
|
2.60
|
|
2029
|
|
AEP Texas
|
|
Senior Unsecured Notes
|
|
300.0
|
|
|
4.15
|
|
2049
|
|
AEPTCo
|
|
Senior Unsecured Notes
|
|
350.0
|
|
|
3.80
|
|
2049
|
|
AEPTCo
|
|
Senior Unsecured Notes
|
|
350.0
|
|
|
3.15
|
|
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:
|
|
|
|
|
|
|
|
|
||
AEGCo
|
|
Pollution Control Bonds
|
|
45.0
|
|
|
1.35
|
|
2022
|
|
Transource Energy
|
|
Other Long-term Debt
|
|
14.4
|
|
|
Variable
|
|
2020
|
|
Total Issuances
|
|
|
|
$
|
3,549.0
|
|
|
|
|
|
(a)
|
Amounts indicated on the statements of cash flows are net of issuance costs and premium or discount and will not tie to the issuance amounts.
|
(b)
|
See “Equity Units” section below for additional information.
|
|
|
|
|
Principal
|
|
Interest
|
|
|
||
Company
|
|
Type of Debt
|
|
Amount Paid
|
|
Rate
|
|
Due Date
|
||
Retirements and Principal Payments:
|
|
|
|
(in millions)
|
|
(%)
|
|
|
||
AEP Texas
|
|
Senior Unsecured Notes
|
|
$
|
50.0
|
|
|
2.61
|
|
2019
|
AEP Texas
|
|
Securitization Bonds
|
|
28.2
|
|
|
1.98
|
|
2020
|
|
AEP Texas
|
|
Securitization Bonds
|
|
188.0
|
|
|
5.31
|
|
2020
|
|
AEP Texas
|
|
Pollution Control Bonds
|
|
100.6
|
|
|
6.30
|
|
2029
|
|
APCo
|
|
Pollution Control Bonds
|
|
86.0
|
|
|
1.90
|
|
2019
|
|
APCo
|
|
Pollution Control Bonds
|
|
70.0
|
|
|
3.25
|
|
2019
|
|
APCo
|
|
Securitization Bonds
|
|
24.4
|
|
|
2.01
|
|
2023
|
|
I&M
|
|
Notes Payable
|
|
2.7
|
|
|
Variable
|
|
2019
|
|
I&M
|
|
Notes Payable
|
|
4.3
|
|
|
Variable
|
|
2019
|
|
I&M
|
|
Notes Payable
|
|
13.7
|
|
|
Variable
|
|
2020
|
|
I&M
|
|
Notes Payable
|
|
17.9
|
|
|
Variable
|
|
2021
|
|
I&M
|
|
Notes Payable
|
|
11.3
|
|
|
Variable
|
|
2022
|
|
I&M
|
|
Notes Payable
|
|
16.0
|
|
|
Variable
|
|
2022
|
|
I&M
|
|
Notes Payable
|
|
6.4
|
|
|
Variable
|
|
2023
|
|
I&M
|
|
Other Long-term Debt
|
|
1.3
|
|
|
6.00
|
|
2025
|
|
OPCo
|
|
Securitization Bonds
|
|
47.9
|
|
|
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
|
|
0.4
|
|
|
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
|
|
3.2
|
|
|
4.58
|
|
2032
|
|
|
|
|
|
|
|
|
|
|
||
Non-Registrant:
|
|
|
|
|
|
|
|
|
||
AEGCo
|
|
Pollution Control Bonds
|
|
45.0
|
|
|
Variable
|
|
2019
|
|
AEP Energy
|
|
Notes Payable
|
|
0.1
|
|
|
5.75
|
|
2019
|
|
Transource Energy
|
|
Other Long-term Debt
|
|
1.0
|
|
|
Variable
|
|
2020
|
|
Total Retirements and Principal Payments
|
|
|
|
$
|
1,023.5
|
|
|
|
|
|
•
|
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
|
|
September 30, 2019
|
|
Limit
|
|
||||||||||||
|
|
(in millions)
|
|||||||||||||||||||||||
AEP Texas
|
|
$
|
390.7
|
|
|
$
|
—
|
|
|
$
|
261.8
|
|
|
$
|
—
|
|
|
$
|
(74.8
|
)
|
|
$
|
500.0
|
|
|
AEPTCo
|
|
374.9
|
|
|
244.4
|
|
|
179.8
|
|
|
40.2
|
|
|
236.6
|
|
|
795.0
|
|
(a)
|
||||||
APCo
|
|
225.4
|
|
|
232.2
|
|
|
90.4
|
|
|
61.8
|
|
|
(17.7
|
)
|
|
600.0
|
|
|
||||||
I&M
|
|
120.4
|
|
|
66.0
|
|
|
53.1
|
|
|
17.2
|
|
|
(89.2
|
)
|
|
500.0
|
|
|
||||||
OPCo
|
|
291.2
|
|
|
178.6
|
|
|
163.5
|
|
|
50.1
|
|
|
(17.6
|
)
|
|
500.0
|
|
|
||||||
PSO
|
|
140.5
|
|
|
215.6
|
|
|
63.9
|
|
|
84.1
|
|
|
95.1
|
|
|
300.0
|
|
|
||||||
SWEPCo
|
|
105.1
|
|
|
81.4
|
|
|
57.8
|
|
|
11.2
|
|
|
6.4
|
|
|
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
|
|
September 30, 2019
|
||||||
|
(in millions)
|
|||||||||||
AEP Texas
|
|
$
|
8.0
|
|
|
$
|
7.7
|
|
|
$
|
7.7
|
|
SWEPCo
|
|
2.1
|
|
|
2.0
|
|
|
2.1
|
|
Maximum
|
|
Maximum
|
|
Average
|
|
Average
|
|
Borrowings from
|
|
Loans to
|
|
Authorized
|
|
||||||||||||||
Borrowings
|
|
Loans
|
|
Borrowings
|
|
Loans
|
|
AEP as of
|
|
AEP as of
|
|
Short-term
|
|
||||||||||||||
from AEP
|
|
to AEP
|
|
from AEP
|
|
to AEP
|
|
September 30, 2019
|
|
September 30, 2019
|
|
Borrowing Limit
|
|
||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||
$
|
1.3
|
|
|
$
|
117.6
|
|
|
$
|
1.3
|
|
|
$
|
63.4
|
|
|
$
|
1.3
|
|
|
$
|
30.8
|
|
|
$
|
75.0
|
|
(a)
|
(a)
|
Amount represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions.
|
|
|
Nine Months Ended September 30,
|
||||
|
|
2019
|
|
2018
|
||
Maximum Interest Rate
|
|
3.43
|
%
|
|
2.52
|
%
|
Minimum Interest Rate
|
|
1.83
|
%
|
|
1.81
|
%
|
|
|
Average Interest Rate for Funds
|
|
Average Interest Rate for Funds
|
||||||||
|
|
Borrowed from the Utility Money Pool
|
|
Loaned to the Utility Money Pool
|
||||||||
|
|
for Nine Months Ended September 30,
|
|
for Nine Months Ended September 30,
|
||||||||
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
AEP Texas
|
|
2.71
|
%
|
|
2.25
|
%
|
|
—
|
%
|
|
2.29
|
%
|
AEPTCo
|
|
2.72
|
%
|
|
2.26
|
%
|
|
2.57
|
%
|
|
2.04
|
%
|
APCo
|
|
2.82
|
%
|
|
2.22
|
%
|
|
2.73
|
%
|
|
2.19
|
%
|
I&M
|
|
2.56
|
%
|
|
2.16
|
%
|
|
2.73
|
%
|
|
2.06
|
%
|
OPCo
|
|
2.80
|
%
|
|
2.18
|
%
|
|
2.68
|
%
|
|
2.47
|
%
|
PSO
|
|
2.85
|
%
|
|
2.25
|
%
|
|
2.48
|
%
|
|
1.86
|
%
|
SWEPCo
|
|
2.74
|
%
|
|
2.31
|
%
|
|
2.47
|
%
|
|
1.87
|
%
|
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Maximum
|
|
Minimum
|
|
Average
|
||||||
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
||||||
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
||||||
|
|
Loaned to
|
|
Loaned to
|
|
Loaned to
|
|
Loaned to
|
|
Loaned to
|
|
Loaned to
|
||||||
|
|
the Nonutility
|
|
the Nonutility
|
|
the Nonutility
|
|
the Nonutility
|
|
the Nonutility
|
|
the Nonutility
|
||||||
Company
|
|
Money Pool
|
|
Money Pool
|
|
Money Pool
|
|
Money Pool
|
|
Money Pool
|
|
Money Pool
|
||||||
AEP Texas
|
|
3.02
|
%
|
|
2.36
|
%
|
|
2.70
|
%
|
|
2.52
|
%
|
|
1.83
|
%
|
|
2.26
|
%
|
SWEPCo
|
|
3.02
|
%
|
|
2.36
|
%
|
|
2.70
|
%
|
|
2.52
|
%
|
|
1.83
|
%
|
|
2.26
|
%
|
|
|
Maximum
|
|
Minimum
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Average
|
||||||
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
|
Interest Rate
|
||||||
Nine Months
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
|
for Funds
|
||||||
Ended
|
|
Borrowed
|
|
Borrowed
|
|
Loaned
|
|
Loaned
|
|
Borrowed
|
|
Loaned
|
||||||
September 30,
|
|
from AEP
|
|
from AEP
|
to AEP
|
|
to AEP
|
|
from AEP
|
|
to AEP
|
|||||||
2019
|
|
3.02
|
%
|
|
2.36
|
%
|
|
3.02
|
%
|
|
2.36
|
%
|
|
2.70
|
%
|
|
2.70
|
%
|
2018
|
|
2.52
|
%
|
|
1.76
|
%
|
|
2.52
|
%
|
|
1.76
|
%
|
|
2.26
|
%
|
|
2.27
|
%
|
|
|
September 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)
|
|
$
|
750.0
|
|
|
2.56
|
%
|
|
$
|
750.0
|
|
|
2.16
|
%
|
Commercial Paper
|
|
1,760.0
|
|
|
2.36
|
%
|
|
1,160.0
|
|
|
2.96
|
%
|
||
Total Short-term Debt
|
|
$
|
2,510.0
|
|
|
|
|
|
$
|
1,910.0
|
|
|
|
|
(a)
|
Weighted-average rate.
|
(b)
|
Amount of securitized debt for receivables as accounted for under the “Transfers and Servicing” accounting guidance.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in millions)
|
||||||
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts
|
|
$
|
923.3
|
|
|
$
|
972.5
|
|
Short-term – Securitized Debt of Receivables
|
|
750.0
|
|
|
750.0
|
|
||
Delinquent Securitized Accounts Receivable
|
|
43.9
|
|
|
50.3
|
|
||
Bad Debt Reserves Related to Securitization
|
|
32.3
|
|
|
27.5
|
|
||
Unbilled Receivables Related to Securitization
|
|
216.2
|
|
|
281.4
|
|
Company
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in millions)
|
||||||
APCo
|
|
$
|
95.4
|
|
|
$
|
133.3
|
|
I&M
|
|
156.2
|
|
|
152.9
|
|
||
OPCo
|
|
337.5
|
|
|
395.2
|
|
||
PSO
|
|
149.4
|
|
|
109.7
|
|
||
SWEPCo
|
|
168.6
|
|
|
150.3
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
APCo
|
|
$
|
1.2
|
|
|
$
|
1.8
|
|
|
$
|
5.8
|
|
|
$
|
5.1
|
|
I&M
|
|
2.4
|
|
|
2.5
|
|
|
8.4
|
|
|
6.8
|
|
||||
OPCo
|
|
6.4
|
|
|
7.2
|
|
|
22.1
|
|
|
18.8
|
|
||||
PSO
|
|
2.0
|
|
|
2.3
|
|
|
6.2
|
|
|
6.0
|
|
||||
SWEPCo
|
|
1.9
|
|
|
2.6
|
|
|
7.9
|
|
|
6.6
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Company
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in millions)
|
||||||||||||||
APCo
|
|
$
|
303.3
|
|
|
$
|
334.1
|
|
|
$
|
978.5
|
|
|
$
|
1,079.2
|
|
I&M
|
|
485.3
|
|
|
498.4
|
|
|
1,378.9
|
|
|
1,401.7
|
|
||||
OPCo
|
|
602.6
|
|
|
695.2
|
|
|
1,746.1
|
|
|
2,046.9
|
|
||||
PSO
|
|
451.5
|
|
|
454.9
|
|
|
1,118.7
|
|
|
1,171.2
|
|
||||
SWEPCo
|
|
480.7
|
|
|
512.6
|
|
|
1,247.0
|
|
|
1,364.6
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation & Marketing
|
|
Corporate and Other
|
|
Reconciling Adjustments
|
|
AEP Consolidated
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
1,060.2
|
|
|
$
|
588.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,648.2
|
|
Commercial Revenues
|
|
612.5
|
|
|
290.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
903.4
|
|
|||||||
Industrial Revenues
|
|
566.0
|
|
|
99.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
666.8
|
|
|||||||
Other Retail Revenues
|
|
49.2
|
|
|
10.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59.8
|
|
|||||||
Total Retail Revenues
|
|
2,287.9
|
|
|
988.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
3,278.2
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (a)
|
|
231.3
|
|
|
—
|
|
|
—
|
|
|
77.1
|
|
|
—
|
|
|
(34.2
|
)
|
|
274.2
|
|
|||||||
Transmission Revenues (b)
|
|
77.8
|
|
|
110.9
|
|
|
269.4
|
|
|
—
|
|
|
—
|
|
|
(217.2
|
)
|
|
240.9
|
|
|||||||
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
415.4
|
|
|
—
|
|
|
0.5
|
|
|
415.9
|
|
|||||||
Total Wholesale and Competitive Retail Revenues
|
|
309.1
|
|
|
110.9
|
|
|
269.4
|
|
|
492.5
|
|
|
—
|
|
|
(250.9
|
)
|
|
931.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (c)
|
|
47.3
|
|
|
42.9
|
|
|
4.5
|
|
|
14.8
|
|
|
35.6
|
|
|
(42.2
|
)
|
|
102.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
2,644.3
|
|
|
1,142.6
|
|
|
273.9
|
|
|
507.3
|
|
|
35.6
|
|
|
(291.6
|
)
|
|
4,312.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (c)
|
|
1.2
|
|
|
5.1
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(16.8
|
)
|
|
(11.4
|
)
|
|||||||
Other Revenues (c)
|
|
—
|
|
|
38.9
|
|
|
—
|
|
|
26.4
|
|
|
(11.2
|
)
|
|
(39.8
|
)
|
|
14.3
|
|
|||||||
Total Other Revenues
|
|
1.2
|
|
|
44.0
|
|
|
(0.9
|
)
|
|
26.4
|
|
|
(11.2
|
)
|
|
(56.6
|
)
|
|
2.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
2,645.5
|
|
|
$
|
1,186.6
|
|
|
$
|
273.0
|
|
|
$
|
533.7
|
|
|
$
|
24.4
|
|
|
$
|
(348.2
|
)
|
|
$
|
4,315.0
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $34 million. The remaining affiliated amounts were immaterial.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $197 million. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation & Marketing
|
|
Corporate and Other
|
|
Reconciling Adjustments
|
|
AEP Consolidated
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
1,048.7
|
|
|
$
|
612.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,660.9
|
|
Commercial Revenues
|
|
612.8
|
|
|
330.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
943.7
|
|
|||||||
Industrial Revenues
|
|
578.8
|
|
|
128.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
707.6
|
|
|||||||
Other Retail Revenues
|
|
49.1
|
|
|
10.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59.8
|
|
|||||||
Total Retail Revenues (a)
|
|
2,289.4
|
|
|
1,082.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,372.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (b)
|
|
224.2
|
|
|
—
|
|
|
—
|
|
|
115.1
|
|
|
—
|
|
|
(98.5
|
)
|
|
240.8
|
|
|||||||
Transmission Revenues (c)
|
|
72.8
|
|
|
88.0
|
|
|
201.4
|
|
|
—
|
|
|
—
|
|
|
(241.6
|
)
|
|
120.6
|
|
|||||||
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
399.1
|
|
|
—
|
|
|
—
|
|
|
399.1
|
|
|||||||
Total Wholesale and Competitive Retail Revenues
|
|
297.0
|
|
|
88.0
|
|
|
201.4
|
|
|
514.2
|
|
|
—
|
|
|
(340.1
|
)
|
|
760.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (e)
|
|
40.3
|
|
|
69.9
|
|
|
0.7
|
|
|
12.7
|
|
|
21.5
|
|
|
49.5
|
|
|
194.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
2,626.7
|
|
|
1,240.5
|
|
|
202.1
|
|
|
526.9
|
|
|
21.5
|
|
|
(290.6
|
)
|
|
4,327.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (d)
|
|
0.2
|
|
|
(37.9
|
)
|
|
(14.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52.6
|
)
|
|||||||
Other Revenues (e)
|
|
9.8
|
|
|
8.9
|
|
|
—
|
|
|
(5.3
|
)
|
|
2.2
|
|
|
43.0
|
|
|
58.6
|
|
|||||||
Total Other Revenues
|
|
10.0
|
|
|
(29.0
|
)
|
|
(14.9
|
)
|
|
(5.3
|
)
|
|
2.2
|
|
|
43.0
|
|
|
6.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
2,636.7
|
|
|
$
|
1,211.5
|
|
|
$
|
187.2
|
|
|
$
|
521.6
|
|
|
$
|
23.7
|
|
|
$
|
(247.6
|
)
|
|
$
|
4,333.1
|
|
(a)
|
2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $35 million. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $147 million. The remaining affiliated amounts were immaterial.
|
(d)
|
The alternative revenue for Transmission and Distribution Utilities was primarily the $48 million reduction in revenue relating to the Ohio Tax Reform settlement.
|
(e)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
192.0
|
|
|
$
|
—
|
|
|
$
|
315.7
|
|
|
$
|
198.2
|
|
|
$
|
395.6
|
|
|
$
|
231.9
|
|
|
$
|
222.9
|
|
Commercial Revenues
|
|
110.6
|
|
|
—
|
|
|
147.2
|
|
|
138.3
|
|
|
180.5
|
|
|
122.2
|
|
|
144.3
|
|
|||||||
Industrial Revenues
|
|
32.2
|
|
|
—
|
|
|
152.2
|
|
|
138.7
|
|
|
67.1
|
|
|
84.1
|
|
|
92.3
|
|
|||||||
Other Retail Revenues
|
|
7.5
|
|
|
—
|
|
|
18.5
|
|
|
1.9
|
|
|
3.1
|
|
|
24.9
|
|
|
2.3
|
|
|||||||
Total Retail Revenues
|
|
342.3
|
|
|
—
|
|
|
633.6
|
|
|
477.1
|
|
|
646.3
|
|
|
463.1
|
|
|
461.8
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (a)
|
|
—
|
|
|
—
|
|
|
70.4
|
|
|
102.1
|
|
|
—
|
|
|
21.1
|
|
|
50.7
|
|
|||||||
Transmission Revenues (b)
|
|
97.7
|
|
|
256.4
|
|
|
26.2
|
|
|
6.4
|
|
|
13.7
|
|
|
(3.4
|
)
|
|
30.0
|
|
|||||||
Total Wholesale Revenues
|
|
97.7
|
|
|
256.4
|
|
|
96.6
|
|
|
108.5
|
|
|
13.7
|
|
|
17.7
|
|
|
80.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (c)
|
|
8.2
|
|
|
4.5
|
|
|
18.7
|
|
|
26.6
|
|
|
41.0
|
|
|
5.1
|
|
|
7.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
448.2
|
|
|
260.9
|
|
|
748.9
|
|
|
612.2
|
|
|
701.0
|
|
|
485.9
|
|
|
549.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (d)
|
|
(0.7
|
)
|
|
(1.2
|
)
|
|
6.6
|
|
|
(1.1
|
)
|
|
12.4
|
|
|
7.1
|
|
|
(4.0
|
)
|
|||||||
Other Revenues (d)
|
|
41.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|||||||
Total Other Revenues
|
|
41.1
|
|
|
(1.2
|
)
|
|
6.6
|
|
|
(1.1
|
)
|
|
9.6
|
|
|
7.1
|
|
|
(4.0
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
489.3
|
|
|
$
|
259.7
|
|
|
$
|
755.5
|
|
|
$
|
611.1
|
|
|
$
|
710.6
|
|
|
$
|
493.0
|
|
|
$
|
545.5
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $32 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $194 million. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $20 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
|
(d)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
178.8
|
|
|
$
|
—
|
|
|
$
|
320.9
|
|
|
$
|
207.4
|
|
|
$
|
433.5
|
|
|
$
|
220.8
|
|
|
$
|
214.1
|
|
Commercial Revenues
|
|
107.9
|
|
|
—
|
|
|
155.1
|
|
|
138.0
|
|
|
222.9
|
|
|
119.9
|
|
|
140.4
|
|
|||||||
Industrial Revenues
|
|
32.1
|
|
|
—
|
|
|
157.6
|
|
|
150.2
|
|
|
96.3
|
|
|
82.4
|
|
|
89.6
|
|
|||||||
Other Retail Revenues
|
|
7.4
|
|
|
—
|
|
|
19.2
|
|
|
1.7
|
|
|
3.3
|
|
|
24.5
|
|
|
2.2
|
|
|||||||
Total Retail Revenues (a)
|
|
326.2
|
|
|
—
|
|
|
652.8
|
|
|
497.3
|
|
|
756.0
|
|
|
447.6
|
|
|
446.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (b)
|
|
—
|
|
|
—
|
|
|
74.5
|
|
|
93.6
|
|
|
—
|
|
|
12.5
|
|
|
53.2
|
|
|||||||
Transmission Revenues (c)
|
|
73.6
|
|
|
206.6
|
|
|
20.9
|
|
|
6.2
|
|
|
14.8
|
|
|
13.5
|
|
|
29.5
|
|
|||||||
Total Wholesale Revenues
|
|
73.6
|
|
|
206.6
|
|
|
95.4
|
|
|
99.8
|
|
|
14.8
|
|
|
26.0
|
|
|
82.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (d)
|
|
7.5
|
|
|
0.2
|
|
|
15.9
|
|
|
22.4
|
|
|
(29.9
|
)
|
|
5.5
|
|
|
6.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
407.3
|
|
|
206.8
|
|
|
764.1
|
|
|
619.5
|
|
|
740.9
|
|
|
479.1
|
|
|
535.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (e)
|
|
(1.0
|
)
|
|
(12.4
|
)
|
|
(1.2
|
)
|
|
1.5
|
|
|
(36.9
|
)
|
|
2.3
|
|
|
(0.3
|
)
|
|||||||
Other Revenues (f)
|
|
27.1
|
|
|
—
|
|
|
(0.9
|
)
|
|
8.7
|
|
|
74.3
|
|
|
—
|
|
|
—
|
|
|||||||
Total Other Revenues
|
|
26.1
|
|
|
(12.4
|
)
|
|
(2.1
|
)
|
|
10.2
|
|
|
37.4
|
|
|
2.3
|
|
|
(0.3
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
433.4
|
|
|
$
|
194.4
|
|
|
$
|
762.0
|
|
|
$
|
629.7
|
|
|
$
|
778.3
|
|
|
$
|
481.4
|
|
|
$
|
535.3
|
|
(a)
|
2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $30 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $146 million. The remaining affiliated amounts were immaterial.
|
(d)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $17 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
|
(e)
|
The alternative revenue for OPCo was primarily the $48 million reduction in revenue relating to the Ohio Tax Reform settlement.
|
(f)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation & Marketing
|
|
Corporate and Other
|
|
Reconciling Adjustments
|
|
AEP Consolidated
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
2,797.6
|
|
|
$
|
1,609.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,406.7
|
|
Commercial Revenues
|
|
1,641.2
|
|
|
889.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,530.6
|
|
|||||||
Industrial Revenues
|
|
1,647.3
|
|
|
332.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,979.9
|
|
|||||||
Other Retail Revenues
|
|
136.1
|
|
|
32.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168.9
|
|
|||||||
Total Retail Revenues
|
|
6,222.2
|
|
|
2,863.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,086.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (a)
|
|
661.9
|
|
|
—
|
|
|
—
|
|
|
282.0
|
|
|
—
|
|
|
(105.5
|
)
|
|
838.4
|
|
|||||||
Transmission Revenues (b)
|
|
215.4
|
|
|
324.0
|
|
|
814.3
|
|
|
—
|
|
|
—
|
|
|
(603.6
|
)
|
|
750.1
|
|
|||||||
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,088.5
|
|
|
—
|
|
|
0.5
|
|
|
1,089.0
|
|
|||||||
Total Wholesale and Competitive Retail Revenues
|
|
877.3
|
|
|
324.0
|
|
|
814.3
|
|
|
1,370.5
|
|
|
—
|
|
|
(708.6
|
)
|
|
2,677.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (c)
|
|
128.8
|
|
|
127.6
|
|
|
12.6
|
|
|
4.5
|
|
|
80.4
|
|
|
(113.6
|
)
|
|
240.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
7,228.3
|
|
|
3,315.5
|
|
|
826.9
|
|
|
1,375.0
|
|
|
80.4
|
|
|
(822.2
|
)
|
|
12,003.9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (c)
|
|
(55.7
|
)
|
|
21.5
|
|
|
(18.6
|
)
|
|
—
|
|
|
—
|
|
|
(60.3
|
)
|
|
(113.1
|
)
|
|||||||
Other Revenues (c)
|
|
—
|
|
|
117.3
|
|
|
—
|
|
|
53.2
|
|
|
(6.7
|
)
|
|
(109.2
|
)
|
|
54.6
|
|
|||||||
Total Other Revenues
|
|
(55.7
|
)
|
|
138.8
|
|
|
(18.6
|
)
|
|
53.2
|
|
|
(6.7
|
)
|
|
(169.5
|
)
|
|
(58.5
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
7,172.6
|
|
|
$
|
3,454.3
|
|
|
$
|
808.3
|
|
|
$
|
1,428.2
|
|
|
$
|
73.7
|
|
|
$
|
(991.7
|
)
|
|
$
|
11,945.4
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $105 million. The remaining affiliated amounts were immaterial.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $596 million. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
|
Vertically Integrated Utilities
|
|
Transmission and Distribution Utilities
|
|
AEP Transmission Holdco
|
|
Generation & Marketing
|
|
Corporate and Other
|
|
Reconciling Adjustments
|
|
AEP Consolidated
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
2,906.9
|
|
|
$
|
1,711.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,618.0
|
|
Commercial Revenues
|
|
1,672.7
|
|
|
945.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,617.9
|
|
|||||||
Industrial Revenues
|
|
1,676.1
|
|
|
381.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,057.6
|
|
|||||||
Other Retail Revenues
|
|
139.4
|
|
|
31.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
171.2
|
|
|||||||
Total Retail Revenues (a)
|
|
6,395.1
|
|
|
3,069.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,464.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale and Competitive Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (b)
|
|
686.5
|
|
|
—
|
|
|
—
|
|
|
413.4
|
|
|
—
|
|
|
(155.2
|
)
|
|
944.7
|
|
|||||||
Transmission Revenues (c)
|
|
208.4
|
|
|
272.6
|
|
|
633.9
|
|
|
—
|
|
|
—
|
|
|
(520.7
|
)
|
|
594.2
|
|
|||||||
Marketing, Competitive Retail and Renewable Revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,040.2
|
|
|
—
|
|
|
—
|
|
|
1,040.2
|
|
|||||||
Total Wholesale and Competitive Retail Revenues
|
|
894.9
|
|
|
272.6
|
|
|
633.9
|
|
|
1,453.6
|
|
|
—
|
|
|
(675.9
|
)
|
|
2,579.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (e)
|
|
121.8
|
|
|
165.1
|
|
|
11.1
|
|
|
15.0
|
|
|
64.8
|
|
|
1.8
|
|
|
379.6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
7,411.8
|
|
|
3,507.3
|
|
|
645.0
|
|
|
1,468.6
|
|
|
64.8
|
|
|
(674.1
|
)
|
|
12,423.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (d)
|
|
(19.2
|
)
|
|
(48.3
|
)
|
|
(39.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(107.3
|
)
|
|||||||
Other Revenues (e)
|
|
1.1
|
|
|
51.9
|
|
|
—
|
|
|
18.8
|
|
|
6.7
|
|
|
—
|
|
|
78.5
|
|
|||||||
Total Other Revenues
|
|
(18.1
|
)
|
|
3.6
|
|
|
(39.8
|
)
|
|
18.8
|
|
|
6.7
|
|
|
—
|
|
|
(28.8
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
7,393.7
|
|
|
$
|
3,510.9
|
|
|
$
|
605.2
|
|
|
$
|
1,487.4
|
|
|
$
|
71.5
|
|
|
$
|
(674.1
|
)
|
|
$
|
12,394.6
|
|
(a)
|
2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $87 million. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $444 million. The remaining affiliated amounts were immaterial.
|
(d)
|
The alternative revenue for Transmission and Distribution Utilities was primarily the $48 million reduction in revenue relating to the Ohio Tax Reform settlement.
|
(e)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
454.9
|
|
|
$
|
—
|
|
|
$
|
944.7
|
|
|
$
|
558.8
|
|
|
$
|
1,155.5
|
|
|
$
|
519.6
|
|
|
$
|
503.7
|
|
Commercial Revenues
|
|
314.5
|
|
|
—
|
|
|
421.5
|
|
|
371.4
|
|
|
573.7
|
|
|
304.3
|
|
|
371.1
|
|
|||||||
Industrial Revenues
|
|
98.8
|
|
|
—
|
|
|
444.3
|
|
|
411.9
|
|
|
233.9
|
|
|
238.1
|
|
|
257.2
|
|
|||||||
Other Retail Revenues
|
|
22.7
|
|
|
—
|
|
|
56.5
|
|
|
5.4
|
|
|
9.8
|
|
|
63.1
|
|
|
6.7
|
|
|||||||
Total Retail Revenues
|
|
890.9
|
|
|
—
|
|
|
1,867.0
|
|
|
1,347.5
|
|
|
1,972.9
|
|
|
1,125.1
|
|
|
1,138.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (a)
|
|
—
|
|
|
—
|
|
|
200.1
|
|
|
327.4
|
|
|
—
|
|
|
35.5
|
|
|
152.7
|
|
|||||||
Transmission Revenues (b)
|
|
282.0
|
|
|
775.3
|
|
|
77.6
|
|
|
18.8
|
|
|
42.0
|
|
|
21.9
|
|
|
78.0
|
|
|||||||
Total Wholesale Revenues
|
|
282.0
|
|
|
775.3
|
|
|
277.7
|
|
|
346.2
|
|
|
42.0
|
|
|
57.4
|
|
|
230.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (c)
|
|
22.9
|
|
|
12.6
|
|
|
48.2
|
|
|
76.2
|
|
|
113.3
|
|
|
16.7
|
|
|
20.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
1,195.8
|
|
|
787.9
|
|
|
2,192.9
|
|
|
1,769.9
|
|
|
2,128.2
|
|
|
1,199.2
|
|
|
1,389.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (d)
|
|
(0.4
|
)
|
|
(17.8
|
)
|
|
11.2
|
|
|
(1.4
|
)
|
|
22.0
|
|
|
(25.3
|
)
|
|
(47.4
|
)
|
|||||||
Other Revenues (d)
|
|
122.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|||||||
Total Other Revenues
|
|
122.2
|
|
|
(17.8
|
)
|
|
11.2
|
|
|
(1.4
|
)
|
|
25.8
|
|
|
(25.3
|
)
|
|
(47.4
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
1,318.0
|
|
|
$
|
770.1
|
|
|
$
|
2,204.1
|
|
|
$
|
1,768.5
|
|
|
$
|
2,154.0
|
|
|
$
|
1,173.9
|
|
|
$
|
1,342.1
|
|
(a)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $96 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $587 million. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $57 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
|
(d)
|
Amounts include affiliated and nonaffiliated revenues.
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
|
AEP Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Retail Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Revenues
|
|
$
|
453.6
|
|
|
$
|
—
|
|
|
$
|
1,017.3
|
|
|
$
|
559.4
|
|
|
$
|
1,258.4
|
|
|
$
|
531.4
|
|
|
$
|
512.4
|
|
Commercial Revenues
|
|
310.8
|
|
|
—
|
|
|
442.3
|
|
|
369.8
|
|
|
633.2
|
|
|
309.3
|
|
|
372.6
|
|
|||||||
Industrial Revenues
|
|
94.8
|
|
|
—
|
|
|
457.3
|
|
|
428.0
|
|
|
287.4
|
|
|
228.7
|
|
|
254.0
|
|
|||||||
Other Retail Revenues
|
|
21.7
|
|
|
—
|
|
|
57.6
|
|
|
5.4
|
|
|
9.8
|
|
|
65.2
|
|
|
6.4
|
|
|||||||
Total Retail Revenues (a)
|
|
880.9
|
|
|
—
|
|
|
1,974.5
|
|
|
1,362.6
|
|
|
2,188.8
|
|
|
1,134.6
|
|
|
1,145.4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wholesale Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Generation Revenues (b)
|
|
—
|
|
|
—
|
|
|
194.1
|
|
|
349.7
|
|
|
—
|
|
|
26.7
|
|
|
168.8
|
|
|||||||
Transmission Revenues (c)
|
|
229.6
|
|
|
612.9
|
|
|
60.2
|
|
|
16.9
|
|
|
42.8
|
|
|
29.4
|
|
|
77.3
|
|
|||||||
Total Wholesale Revenues
|
|
229.6
|
|
|
612.9
|
|
|
254.3
|
|
|
366.6
|
|
|
42.8
|
|
|
56.1
|
|
|
246.1
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues from Contracts with Customers (d)
|
|
21.8
|
|
|
8.7
|
|
|
42.2
|
|
|
71.0
|
|
|
51.3
|
|
|
14.6
|
|
|
18.0
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues from Contracts with Customers
|
|
1,132.3
|
|
|
621.6
|
|
|
2,271.0
|
|
|
1,800.2
|
|
|
2,282.9
|
|
|
1,205.3
|
|
|
1,409.5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Alternative Revenues (e)
|
|
(1.1
|
)
|
|
(35.4
|
)
|
|
(20.7
|
)
|
|
(4.0
|
)
|
|
(47.2
|
)
|
|
11.2
|
|
|
2.3
|
|
|||||||
Other Revenues (f)
|
|
62.1
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
82.3
|
|
|
—
|
|
|
—
|
|
|||||||
Total Other Revenues
|
|
61.0
|
|
|
(35.4
|
)
|
|
(21.6
|
)
|
|
(4.0
|
)
|
|
35.1
|
|
|
11.2
|
|
|
2.3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenues
|
|
$
|
1,193.3
|
|
|
$
|
586.2
|
|
|
$
|
2,249.4
|
|
|
$
|
1,796.2
|
|
|
$
|
2,318.0
|
|
|
$
|
1,216.5
|
|
|
$
|
1,411.8
|
|
(a)
|
2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.
|
(b)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $100 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts were immaterial.
|
(c)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $448 million. The remaining affiliated amounts were immaterial.
|
(d)
|
Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $57 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
|
(e)
|
The alternative revenue for OPCo was primarily the $48 million reduction in revenue relating to the Ohio Tax Reform settlement.
|
(f)
|
Amounts include affiliated and nonaffiliated revenues.
|
Company
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
After 2023
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
AEP
|
|
$
|
252.7
|
|
|
$
|
209.7
|
|
|
$
|
160.9
|
|
|
$
|
285.5
|
|
|
$
|
908.8
|
|
AEP Texas
|
|
96.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96.8
|
|
|||||
AEPTCo
|
|
225.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225.8
|
|
|||||
APCo
|
|
36.4
|
|
|
32.5
|
|
|
25.5
|
|
|
11.6
|
|
|
106.0
|
|
|||||
I&M
|
|
7.2
|
|
|
8.9
|
|
|
8.8
|
|
|
4.4
|
|
|
29.3
|
|
|||||
OPCo
|
|
17.8
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
25.3
|
|
|||||
PSO
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|||||
SWEPCo
|
|
9.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
Company
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in millions)
|
||||||
AEPTCo
|
|
$
|
69.9
|
|
|
$
|
58.6
|
|
APCo
|
|
41.4
|
|
|
52.5
|
|
||
I&M
|
|
28.0
|
|
|
35.3
|
|
||
OPCo
|
|
29.2
|
|
|
46.1
|
|
||
PSO
|
|
10.3
|
|
|
12.4
|
|
||
SWEPCo
|
|
17.8
|
|
|
16.3
|
|
Exhibit
|
|
Description
|
|
Previously Filed as Exhibit to:
|
|
|
|
||
AEPTCo‡ File No. 333-217143
|
|
|
||
|
|
|
|
|
*4.3
|
|
Company Order and Officer’s Certificate, between AEP Transmission Company, LLC and The Bank of New York Mellon Trust Company, N.A., as trustee, dated September 11, 2019, establishing the terms of the Series L Notes
|
|
Exhibit
|
|
Description
|
|
AEP
|
|
AEP
Texas
|
|
AEPTCo
|
|
APCo
|
|
I&M
|
|
OPCo
|
|
PSO
|
|
SWEPCo
|
10.1
|
|
AEP System Incentive Compensation Deferral Plan Amended and Restated effective June 1, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
AEP Aircraft Timesharing Agreement dated October 1, 2019 between American Electric Power Service Corporation and Nicholas K. Akins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31(a)
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
||||||||
31(b)
|
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
||||||||
32(a)
|
|
Certification of Chief Executive Officer Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code
|
|
|
|
|
|
|
|
|
||||||||
32(b)
|
|
Certification of Chief Financial Officer Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code
|
|
|
|
|
|
|
|
|
||||||||
95
|
|
Mine Safety Disclosures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
||||||||||||||
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
104
|
|
Cover Page Interactive Data File
|
|
Formatted as Inline XBRL and contained in Exhibit 101.
|
(1)
|
Pre-Retirement Cash-Out. If the Participant has not Retired, the Company shall cause the Participant to be paid the full amount credited to his or her Legacy Account Balance in a single lump sum. The payment shall be made within 60 days after the Participant’s Termination.
|
(2)
|
Post-Retirement As Elected. If the Participant has Retired, amounts that are credited to the Participant's Legacy Account Balance:
|
(A)
|
Shall be distributed to the Participant in one of the following optional forms as selected by the Participant:
|
(i)
|
A single lump-sum payment, or
|
(ii)
|
In annual installment payments over not less than two nor more than ten years.
|
(B)
|
Shall be paid in the form of distribution selected by the Participant pursuant to paragraph (A) and shall commence within 60 days after the date elected by the Participant on an effective distribution election form. Such date elected by the Participant shall be either (1) the date of the Participant’s Retirement (provided, however, if the Participant was an Executive Officer at the time of his or her Retirement, the earliest commencement date (for account valuation purposes) shall be December 31 of the year of such Executive
|
(3)
|
One-Time Request for In-Service Withdrawal (Penalty Applies). A Participant shall be entitled to receive, upon a written request to the Committee that is effective between April 1 and December 31 of any Plan Year, a lump sum distribution from his or her Legacy Account Balance of an amount equal to or greater than 25% of the Participant’s Legacy Account Balance as of the date of the request. The date of the request shall be the date the Committee or the Committee’s representative receives the request. The lump sum amount to be paid to the Participant shall be subject to a 10% early withdrawal penalty, which penalty shall reduce the amount to be distributed to the Participant or Former Participant. The Participant or Former Participant shall forfeit the amount of the 10% withdrawal penalty. The lump sum amount shall be paid within 60 days after the Committee receives the withdrawal request. Any Participant who elects to receive a benefit under this paragraph shall not be considered an
|
(1)
|
Form of Distribution. The Company shall cause the Participant or the Former Participant to be paid the full amount credited to his or her Active Account Balance in accordance with his or her effective election in one of the following forms; provided that options (ii) and (iv) under paragraph (C) of this subsection (b)(1) may be elected on forms submitted on or after such date after November 1, 2019 that such options are first communicated to the Participant and become effective in accordance with the other provisions of this subsection (b).
|
(A)
|
A single lump sum distribution
|
(i)
|
as of the First Date Available; or
|
(ii)
|
as of the Next Date Available; or
|
(iii)
|
as of the fifth anniversary of the First Date Available; or
|
(iv)
|
as of the fifth anniversary of the Next Date Available; or
|
(B)
|
In five (5) annual installments commencing
|
(i)
|
as of the First Date Available; or
|
(ii)
|
as of the Next Date Available; or
|
(iii)
|
as of the fifth anniversary of the First Date Available; or
|
(iv)
|
as of the fifth anniversary of the Next Date Available; or
|
(C)
|
In ten (10) annual installments commencing
|
(i)
|
as of the First Date Available; or
|
(ii)
|
as of the Next Date Available or
|
(iii)
|
as of the fifth anniversary of the First Date Available or
|
(iv)
|
as of the fifth anniversary of the Next Date Available.
|
(2)
|
Effective Election. For this purpose, a Participant’s election with respect to the distribution of his or her Active Account Balance shall not be effective unless all of the following requirements are satisfied.
|
(A)
|
The election is submitted to the Company in writing in a form determined by the Committee to be acceptable;
|
(B)
|
The election is submitted timely. For purposes of this paragraph, a distribution election will be considered “timely” only if it is submitted prior to the Participant’s Termination and it satisfies the requirements of (i), (ii), (iii) or (iv), below, as may be applicable:
|
(i)
|
Submitted within the applicable election period set forth in Section 4.2, but only if the distribution election is submitted in connection with the Participant’s initial deferral election under this Plan; or
|
(ii)
|
Submitted during the 2005 Distribution Election Period, but only with regard to the first distribution election form submitted by such Participant during that period; or
|
(iii)
|
Submitted during the 2006 Distribution Election Period by a Participant who then has an Active Account Balance but who was not an Eligible Employee for purposes of a deferral election for 2006 by reason of the change in the definition of Eligible Employee set forth in Section 2.8, but only with regard to the last distribution election form submitted by such Participant during that period; or
|
(iv)
|
If the Participant is submitting the election to change the timing or form of distribution that is then in effect with respect to the Participant’s Active Account Balance other than an effective distribution election submitted as part of the 2005 Distribution Election Period or 2006 Distribution Election Period, such election must be submitted at least one year prior to the date of the Participant’s Termination.
|
(C)
|
If the Participant is submitting the election pursuant to paragraph (b)(2)(B)(iv) to change the timing or form of distribution that is then in effect with respect to the Participant’s Active Account Balance (i.e., the Participant is not submitting an election with his
|
(D)
|
If the Participant is submitting the election pursuant to paragraph (b)(2)(B)(iii) to change the timing or form of distribution that is then in effect with respect to the Participant’s Active Account Balance, the newly selected option may not defer payments that the Participant would have received in 2006 if not for the new distribution election nor cause payments to be made in 2006 if not for the new distribution election.
|
(3)
|
If a Participant fails to submit an effective distribution election with regard to his Active Account Balance that satisfies the requirements of Section 6.1(b)(2)(B)(i) (with his timely initial deferral election) or Section 6.1(b)(2)(B)(ii) (during the 2005 Distribution Election Period) or Section 6.1(b)(2)(B)(iii) (during the 2006 Distribution Election Period), as applicable, by the date of such initial deferral election or the last day of the 2005 or 2006 Distribution Election Period, respectively, as applicable, such Participant shall be considered to have elected a distribution of his or her Active Account Balance in a single lump sum as of the First Date Available.
|
(4)
|
Payout of Stock Units During Holding Period as Shares. Notwithstanding any other provision of this Section 6.1(b) to the contrary, effective June 1, 2019, to the extent any amount credited in a Participant’s Account as Stock Units (including any Stock Units attributable to dividends during the Holding Period) becomes distributable during the Holding Period for those Stock Units, each such distributable Stock Unit shall be converted into a single Share (as defined under the American Electric Power System Long-Term Incentive Plan, as amended from time to time) for delivery in accordance with this section. Fractional Stock Units that constitute less than a single Share may be converted to cash or applied as additional income tax withholding at the Committee’s option. The Shares resulting from the conversion of distributable Stock Units shall be delivered to the Participant or to an account set up for the Participant’s benefit with a broker/dealer designated by the Company (the “Broker/Dealer Account”)
|
(i)
|
if the Participant’s Account is $10,000 or less on the Participant’s First Date Available (determined without regard to any delay by reason of a Participant’s being an Executive Officer), the Committee may require that the full value of the Participant’s Account be distributed as of the First Date Available (determined without regard to any delay by reason of a Participant’s being an Executive Officer) in a single, lump sum distribution regardless of the form elected by such Participant, provided that such payment is consistent with the limited cash-out right described in Treasury Regulation Section 1.409A-3(j)(4)(v) or other guidance of the Code in that the payment results in the termination and liquidation of the entirety of the Participant’s interest under each nonqualified deferred compensation plan (including all agreements, methods, programs, or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Treasury Regulation 1.409A-1(c)(2) or other guidance of the Code) that is associated with this Plan; and the total payment with respect to any such single nonqualified deferred compensation plan is not greater than the applicable dollar amount under Code Section 402(g)(1)(B). Provided, however,
|
(ii)
|
Payment to a Participant under any provision of this Plan will be delayed at any time that the Committee reasonably anticipates that the making of such payment will violate Federal securities laws or other applicable law; provided however, that any payments so delayed shall be paid at the
|
(1)
|
The specific reasons for the denial of the claim;
|
(2)
|
Specific reference to the provisions of the Plan upon which the denial of the claim was based;
|
(3)
|
A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary, and
|
(4)
|
An explanation of the review procedure specified in Section 8.2, and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under section 502(a) of the Employee Retirement Income Security Act of 1974, as amended, following an adverse benefit determination on review.
|
(1)
|
The specific reason(s) for the adverse determination;
|
(2)
|
Reference to the specific provisions of the Plan on which the determination was based;
|
(3)
|
A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits; and
|
(4)
|
A statement of the claimant’s right to bring an action under Section 502(a) of ERISA.
|
|
American Electric Power Service Corporation
|
|
|
|
|
|
By /s/ Tracy Elich
|
|
Tracy Elich, Vice President,
|
|
Human Resources
|
If to AEP:
|
|
American Electric Power Service Corporation
|
|
|
1 Riverside Plaza, 01
|
|
|
Columbus, Ohio 43215
|
|
|
Attn: Stanley E. Partlow, Jr., VP & Chief Security Officer
|
|
|
Telephone: 614-716-3020
|
|
|
|
If to User:
|
|
Nicholas K. Akins
|
|
|
1 Riverside Plaza, 30
|
|
|
Columbus, Ohio 43215
|
|
|
Telephone: 614-716-3800
|
American Electric Power
|
|
USER:
|
Service Corporation
|
|
Nicholas K. Akins
|
|
|
|
By: /s/ Stanley E. Partlow, Jr.
|
|
By: /s/ Nicholas K. Akins
|
|
|
|
Name: Stanley E. Partlow, Jr.
|
|
|
Title: VP & Chief Security Officer
|
|
|
Make
|
Model
|
Serial Number
|
Registration Number
|
Lessor
|
Embraer
|
EMB-550
|
55000075
|
N891AE
|
PNC Equipment Finance LLC
|
Hawker
Beechcraft Corp.
|
Hawker 900XP
|
HA-0168
|
N50AE
|
The Huntington National Bank
|
Hawker
Beechcraft Corp.
|
Hawker 900XP
|
HA-0171
|
N754AE
|
The Huntington National Bank
|
|
|
|
|
|
Date: September 24, 2019
|
|
|
|
|
|
American Electric Power
|
|
USER:
|
Service Corporation
|
|
Nicholas K. Akins
|
|
|
|
Initialed: /s/ SEP
|
|
Initialed: /s/ NKA
|
|
|
|
Name: Stanley E. Partlow, Jr.
|
|
|
Title: VP & Chief Security 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 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: October 24, 2019
|
By:
|
|
/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: October 24, 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: October 24, 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.
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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):
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a.
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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
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b.
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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.
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Date: October 24, 2019
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By:
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/s/ Brian X. Tierney
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Brian X. Tierney
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Chief Financial Officer
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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 **
|
$
|
121
|
|
Number of Mining-related Fatalities
|
0
|
|
*
|
References to sections under the Mine Act.
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**
|
Includes assessments paid in the third quarter of 2019 for citations issued in the second quarter of 2019.
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