Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments, Gain (Loss) [Table Text Block]

	Three Months Ended March 31,
	2018			2017
	(in millions)
Loss on Fair Value Hedging Instruments	$	(14.5	)	$	(0.5	)
Gain on Fair Value Portion of Long-term Debt	14.2			0.5

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

March 31, 2018

Primary Risk Exposure	Unit of Measure	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	298.4		—		43.2		33.0		8.3		4.0		8.1
Coal	Tons	1.2		—		—		1.2		—		—		—
Natural Gas	MMBtus	78.2		—		6.2		3.7		—		—		18.0
Heating Oil and Gasoline	Gallons	5.0		1.1		1.0		0.5		1.2		0.5		0.6
Interest Rate	USD	$	49.8	$	—	$	—	$	—	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	500.0	$	—	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2017

Primary Risk Exposure	Unit of Measure	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	358.7		—		57.4		38.5		10.4		10.3		22.7
Coal	Tons	2.0		—		—		2.0		—		—		—
Natural Gas	MMBtus	53.7		—		1.1		0.7		—		—		18.3
Heating Oil and Gasoline	Gallons	6.9		1.4		1.3		0.7		1.6		0.7		0.8
Interest Rate	USD	$	50.7	$	—	$	—	$	—	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	500.0	$	—	$	—	$	—	$	—	$	—	$	—

Fair Value of Derivative Instruments

AEP

Fair Value of Derivative Instruments

March 31, 2018

	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	$	257.0	$	20.1		$	1.7		$	278.8	$	(189.2	)	$	89.6
Long-term Risk Management Assets	319.6		5.1			—			324.7		(53.5		)	271.2
Total Assets	576.6		25.2			1.7			603.5		(242.7		)	360.8
Current Risk Management Liabilities	246.8		10.1			—			256.9		(199.8		)	57.1
Long-term Risk Management Liabilities	271.6		48.5			22.3			342.4		(59.7		)	282.7
Total Liabilities	518.4		58.6			22.3			599.3		(259.5		)	339.8
Total MTM Derivative Contract Net Assets (Liabilities)	$	58.2	$	(33.4	)	$	(20.6	)	$	4.2	$	16.8		$	21.0

Fair Value of Derivative Instruments

December 31, 2017

	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	$	389.0	$	17.5		$	2.5		$	409.0	$	(282.8	)	$	126.2
Long-term Risk Management Assets	300.9		6.3			—			307.2		(25.1		)	282.1
Total Assets	689.9		23.8			2.5			716.2		(307.9		)	408.3
Current Risk Management Liabilities	334.6		9.0			—			343.6		(282.0		)	61.6
Long-term Risk Management Liabilities	280.6		58.3			8.6			347.5		(25.5		)	322.0
Total Liabilities	615.2		67.3			8.6			691.1		(307.5		)	383.6
Total MTM Derivative Contract Net Assets (Liabilities)	$	74.7	$	(43.5	)	$	(6.1	)	$	25.1	$	(0.4	)	$	24.7

AEP Texas

Fair Value of Derivative Instruments

March 31, 2018

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	0.4	$	(0.1	)	$	0.3
Long-term Risk Management Assets	—		—			—
Total Assets	0.4		(0.1		)	0.3
Current Risk Management Liabilities	—		—			—
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	—		—			—
Total MTM Derivative Contract Net Assets (Liabilities)	$	0.4	$	(0.1	)	$	0.3

Fair Value of Derivative Instruments

December 31, 2017

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)		Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	0.5	$	—	$	0.5
Long-term Risk Management Assets	—		—		—
Total Assets	0.5		—		0.5
Current Risk Management Liabilities	—		—		—
Long-term Risk Management Liabilities	—		—		—
Total Liabilities	—		—		—
Total MTM Derivative Contract Net Assets	$	0.5	$	—	$	0.5

APCo

Fair Value of Derivative Instruments

March 31, 2018

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	35.8	$	(27.8	)	$	8.0
Long-term Risk Management Assets	11.2		(8.6		)	2.6
Total Assets	47.0		(36.4		)	10.6
Current Risk Management Liabilities	28.4		(27.8		)	0.6
Long-term Risk Management Liabilities	9.1		(8.7		)	0.4
Total Liabilities	37.5		(36.5		)	1.0
Total MTM Derivative Contract Net Assets	$	9.5	$	0.1		$	9.6

Fair Value of Derivative Instruments

December 31, 2017

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	75.6	$	(50.7	)	$	24.9
Long-term Risk Management Assets	2.4		(1.3		)	1.1
Total Assets	78.0		(52.0		)	26.0
Current Risk Management Liabilities	50.6		(49.3		)	1.3
Long-term Risk Management Liabilities	1.4		(1.2		)	0.2
Total Liabilities	52.0		(50.5		)	1.5
Total MTM Derivative Contract Net Assets (Liabilities)	$	26.0	$	(1.5	)	$	24.5

I&M

Fair Value of Derivative Instruments

March 31, 2018

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	24.0	$	(20.7	)	$	3.3
Long-term Risk Management Assets	8.0		(6.0		)	2.0
Total Assets	32.0		(26.7		)	5.3
Current Risk Management Liabilities	24.6		(20.8		)	3.8
Long-term Risk Management Liabilities	6.1		(5.9		)	0.2
Total Liabilities	30.7		(26.7		)	4.0
Total MTM Derivative Contract Net Assets	$	1.3	$	—		$	1.3

Fair Value of Derivative Instruments

December 31, 2017

Balance Sheet Location	Risk Management Contracts - Commodity (a)			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	47.2		$	(39.6	)	$	7.6
Long-term Risk Management Assets	1.6			(0.9		)	0.7
Total Assets	48.8			(40.5		)	8.3
Current Risk Management Liabilities	48.5			(45.0		)	3.5
Long-term Risk Management Liabilities	0.9			(0.8		)	0.1
Total Liabilities	49.4			(45.8		)	3.6
Total MTM Derivative Contract Net Assets (Liabilities)	$	(0.6	)	$	5.3		$	4.7

OPCo

Fair Value of Derivative Instruments

March 31, 2018

Balance Sheet Location	Risk Management Contracts - Commodity (a)			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	0.5		$	(0.1	)	$	0.4
Long-term Risk Management Assets	—			—			—
Total Assets	0.5			(0.1		)	0.4
Current Risk Management Liabilities	5.3			—			5.3
Long-term Risk Management Liabilities	93.2			—			93.2
Total Liabilities	98.5			—			98.5
Total MTM Derivative Contract Net Liabilities	$	(98.0	)	$	(0.1	)	$	(98.1	)

Fair Value of Derivative Instruments

December 31, 2017

Balance Sheet Location	Risk Management Contracts - Commodity (a)			Gross Amounts Offset in the Statement of Financial Position (b)		Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	0.6		$	—	$	0.6
Long-term Risk Management Assets	—			—		—
Total Assets	0.6			—		0.6
Current Risk Management Liabilities	6.4			—		6.4
Long-term Risk Management Liabilities	126.0			—		126.0
Total Liabilities	132.4			—		132.4
Total MTM Derivative Contract Net Liabilities	$	(131.8	)	$	—	$	(131.8	)

PSO

Fair Value of Derivative Instruments

March 31, 2018

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)		Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	2.9	$	—	$	2.9
Long-term Risk Management Assets	—		—		—
Total Assets	2.9		—		2.9
Current Risk Management Liabilities	—		—		—
Long-term Risk Management Liabilities	—		—		—
Total Liabilities	—		—		—
Total MTM Derivative Contract Net Assets	$	2.9	$	—	$	2.9

Fair Value of Derivative Instruments

December 31, 2017

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	6.6	$	(0.2	)	$	6.4
Long-term Risk Management Assets	—		—			—
Total Assets	6.6		(0.2		)	6.4
Current Risk Management Liabilities	0.2		(0.2		)	—
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	0.2		(0.2		)	—
Total MTM Derivative Contract Net Assets	$	6.4	$	—		$	6.4

SWEPCo

Fair Value of Derivative Instruments

March 31, 2018

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	2.8	$	(1.1	)	$	1.7
Long-term Risk Management Assets	—		—			—
Total Assets	2.8		(1.1		)	1.7
Current Risk Management Liabilities	1.2		(1.1		)	0.1
Long-term Risk Management Liabilities	0.5		—			0.5
Total Liabilities	1.7		(1.1		)	0.6
Total MTM Derivative Contract Net Assets	$	1.1	$	—		$	1.1

Fair Value of Derivative Instruments

December 31, 2017

Balance Sheet Location	Risk Management Contracts - Commodity (a)		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
	(in millions)
Current Risk Management Assets	$	7.0	$	(0.6	)	$	6.4
Long-term Risk Management Assets	—		—			—
Total Assets	7.0		(0.6		)	6.4
Current Risk Management Liabilities	0.8		(0.6		)	0.2
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	0.8		(0.6		)	0.2
Total MTM Derivative Contract Net Assets	$	6.2	$	—		$	6.2

(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) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on

Risk Management Contracts

Three Months Ended March 31, 2018

Location of Gain (Loss)	AEP			AEP Texas			APCo			I&M			OPCo		PSO		SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	(5.5	)	$	—		$	—		$	—		$	—	$	—	$	—
Generation & Marketing Revenues	(15.1		)	—			—			—			—		—		—
Electric Generation, Transmission and Distribution Revenues	—			—			(0.3		)	(5.1		)	—		—		—
Purchased Electricity for Resale	4.9			—			4.6			0.2			—		—		—
Other Operation	0.3			0.1			—			—			0.1		—		—
Maintenance	0.4			0.1			0.1			—			0.1		—		—
Regulatory Assets (a)	37.3			—			—			6.2			31.4		—		(0.3		)
Regulatory Liabilities (a)	87.0			(0.1		)	64.1			0.2			—		12.1		(0.8		)
Total Gain (Loss) on Risk Management Contracts	$	109.3		$	0.1		$	68.5		$	1.5		$	31.6	$	12.1	$	(1.1	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

Three Months Ended March 31, 2017

Location of Gain (Loss)	AEP			AEP Texas			APCo			I&M			OPCo			PSO		SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	5.5		$	—		$	—		$	—		$	—		$	—	$	—
Generation & Marketing Revenues	10.5			—			—			—			—			—		—
Electric Generation, Transmission and Distribution Revenues	—			—			0.4			5.2			—			—		0.1
Purchased Electricity for Resale	2.4			—			0.8			0.1			—			—		—
Other Operation	0.2			—			—			—			—			—		—
Maintenance	0.2			—			—			—			—			—		—
Regulatory Assets (a)	(14.9		)	—			(5.8		)	(0.2		)	(8.6		)	—		(0.2		)
Regulatory Liabilities (a)	25.2			(0.2		)	10.9			6.8			—			2.4		4.6
Total Gain (Loss) on Risk Management Contracts	$	29.1		$	(0.2	)	$	6.3		$	11.9		$	(8.6	)	$	2.4	$	4.5

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on AEP’s Balance Sheets

	March 31, 2018						December 31, 2017
	Commodity			Interest Rate			Commodity			Interest Rate
	(in millions)
Hedging Assets (a)	$	25.5		$	—		$	22.0		$	—
Hedging Liabilities (a)	58.9			—			65.5			—
AOCI Loss Net of Tax	(32.0		)	(15.5		)	(28.4		)	(13.0		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	3.1			(1.0		)	5.5			(0.8		)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets

	March 31, 2018							December 31, 2017
	Interest Rate
Company	AOCI Gain (Loss) Net of Tax				Expected to be Reclassified to Net Income During the Next Twelve Months			AOCI Gain (Loss) Net of Tax			Expected to be Reclassified to Net Income During the Next Twelve Months
	(in millions)
AEP Texas	$	(5.2	)	—	$	(1.1	)	$	(4.5	)	$	(0.9	)
APCo	2.5				0.9			2.2			0.7
I&M	(12.7		)		(1.6		)	(10.7		)	(1.3		)
OPCo	2.0				1.3			1.9			1.1
PSO	2.9				1.0			2.6			0.8
SWEPCo	(6.9		)		(1.7		)	(6.0		)	(1.4		)

Liabilities Subject to Cross Default Provisions

	AEP
	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in millions)
March 31, 2018	$	272.7	$	1.0	$	202.4
December 31, 2017	243.6		1.3		223.1