XML 89 R20.htm IDEA: XBRL DOCUMENT v3.23.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer REVENUE FROM CONTRACTS WITH CUSTOMERS
The disclosures in this note apply to all Registrants, unless indicated otherwise.

Disaggregated Revenues from Contracts with Customers

The tables below represent AEP’s reportable segment revenues from contracts with customers, net of respective provisions for refund, by type of revenue:
Three Months Ended June 30, 2023
Vertically Integrated UtilitiesTransmission and Distribution UtilitiesAEP Transmission HoldcoGeneration & MarketingCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$962.0 $574.1 $— $— $— $— $1,536.1 
Commercial Revenues642.7 358.3 — — — — 1,001.0 
Industrial Revenues698.9 152.1 — — — (0.1)850.9 
Other Retail Revenues58.9 12.3 — — — — 71.2 
Total Retail Revenues2,362.5 1,096.8 — — — (0.1)3,459.2 
Wholesale and Competitive Retail Revenues:
Generation Revenues 141.4 — — 19.6 — 0.1 161.1 
Transmission Revenues (a)113.5 184.1 455.8 — — (402.8)350.6 
Renewable Generation Revenues (b)— — — 33.1 — (3.1)30.0 
Retail, Trading and Marketing Revenues (b)— — — 407.7 1.2 (10.1)398.8 
Total Wholesale and Competitive Retail Revenues
254.9 184.1 455.8 460.4 1.2 (415.9)940.5 
Other Revenues from Contracts with Customers (c)61.9 56.1 4.3 6.2 28.6 (39.9)117.2 
Total Revenues from Contracts with Customers
2,679.3 1,337.0 460.1 466.6 29.8 (455.9)4,516.9 
Other Revenues:
Alternative Revenue Programs (b) (d)(4.9)(2.9)(1.5)— — (6.3)(15.6)
Other Revenues (b) (e)0.1 6.1 — (135.2)2.2 (2.0)(128.8)
Total Other Revenues(4.8)3.2 (1.5)(135.2)2.2 (8.3)(144.4)
Total Revenues$2,674.5 $1,340.2 $458.6 $331.4 $32.0 $(464.2)$4,372.5 

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $360 million. The remaining affiliated amounts were immaterial.
(b)Amounts include affiliated and nonaffiliated revenues.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Corporate and Other was $26 million. The remaining affiliated amounts were immaterial.
(d)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(e)Generation & Marketing includes economic hedge activity.
Three Months Ended June 30, 2022
Vertically Integrated UtilitiesTransmission and Distribution UtilitiesAEP Transmission HoldcoGeneration & MarketingCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$979.3 $561.6 $— $— $— $— $1,540.9 
Commercial Revenues624.8 331.7 — — — — 956.5 
Industrial Revenues641.8 162.5 — — — — 804.3 
Other Retail Revenues52.9 12.8 — — — — 65.7 
Total Retail Revenues2,298.8 1,068.6 — — — — 3,367.4 
Wholesale and Competitive Retail Revenues:
Generation Revenues 188.3 — — 83.0 — 0.1 271.4 
Transmission Revenues (a)108.8 164.9 421.6 — — (332.0)363.3 
Renewable Generation Revenues (b)— — — 38.2 — (2.9)35.3 
Retail, Trading and Marketing Revenues (b)— — — 408.3 1.3 (2.3)407.3 
Total Wholesale and Competitive Retail Revenues
297.1 164.9 421.6 529.5 1.3 (337.1)1,077.3 
Other Revenues from Contracts with Customers (c)49.2 65.9 0.2 1.6 20.9 (21.1)116.7 
Total Revenues from Contracts with Customers
2,645.1 1,299.4 421.8 531.1 22.2 (358.2)4,561.4 
Other Revenues:
Alternative Revenue Programs (b) (d)3.3 (4.6)(43.0)— — (13.1)(57.4)
Other Revenues (b) (e)0.1 6.8 — 128.5 2.3 (2.0)135.7 
Total Other Revenues3.4 2.2 (43.0)128.5 2.3 (15.1)78.3 
Total Revenues$2,648.5 $1,301.6 $378.8 $659.6 $24.5 $(373.3)$4,639.7 

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $334 million. The remaining affiliated amounts were immaterial.
(b)Amounts include affiliated and nonaffiliated revenues.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Vertically Integrated Utilities was $5 million. The remaining affiliated amounts were immaterial.
(d)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(e)Generation & Marketing includes economic hedge activity.
Three Months Ended June 30, 2023
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$144.9 $— $324.8 $185.2 $429.3 $186.5 $185.1 
Commercial Revenues100.6 — 163.6 141.4 257.8 131.7 153.8 
Industrial Revenues35.2 — 192.5 155.9 116.8 107.8 110.6 
Other Retail Revenues8.7 — 25.2 1.2 3.6 28.3 2.6 
Total Retail Revenues289.4 — 706.1 483.7 807.5 454.3 452.1 
Wholesale Revenues:
Generation Revenues (a)— — 64.2 63.5 — 4.3 43.9 
Transmission Revenues (b)163.1 444.7 43.9 9.6 21.0 9.9 38.3 
Total Wholesale Revenues163.1 444.7 108.1 73.1 21.0 14.2 82.2 
Other Revenues from Contracts with Customers (c)
10.7 4.1 11.8 45.0 45.5 7.2 7.0 
Total Revenues from Contracts with Customers
463.2 448.8 826.0 601.8 874.0 475.7 541.3 
Other Revenues:
Alternative Revenue Programs (d) (e)(2.0)(3.9)0.5 (2.6)(0.9)(1.0)(3.5)
Other Revenues (e)— — — — 6.0 — — 
Total Other Revenues(2.0)(3.9)0.5 (2.6)5.1 (1.0)(3.5)
Total Revenues$461.2 $444.9 $826.5 $599.2 $879.1 $474.7 $537.8 

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $38 million primarily related to the PPA with KGPCo.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $357 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $17 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
(d)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(e)Amounts include affiliated and nonaffiliated revenues.
Three Months Ended June 30, 2022
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$174.9 $— $313.2 $195.2 $386.7 $185.2 $188.6 
Commercial Revenues110.6 — 152.6 138.6 221.1 121.2 146.0 
Industrial Revenues36.6 — 161.9 160.0 126.0 92.5 97.1 
Other Retail Revenues9.5 — 20.2 1.2 3.4 25.8 4.4 
Total Retail Revenues331.6 — 647.9 495.0 737.2 424.7 436.1 
Wholesale Revenues:
Generation Revenues (a)— — 63.5 94.2 — 0.3 57.4 
Transmission Revenues (b)143.8 406.1 40.8 8.7 21.1 9.1 39.3 
Total Wholesale Revenues143.8 406.1 104.3 102.9 21.1 9.4 96.7 
Other Revenues from Contracts with Customers (c)
5.6 0.2 20.6 25.8 60.2 9.6 6.0 
Total Revenues from Contracts with Customers
481.0 406.3 772.8 623.7 818.5 443.7 538.8 
Other Revenues:
Alternative Revenue Programs (d) (e)(2.2)(41.9)0.8 7.3 (2.4)(0.8)(2.2)
Other Revenues (e)— — — — 6.8 — — 
Total Other Revenues(2.2)(41.9)0.8 7.3 4.4 (0.8)(2.2)
Total Revenues$478.8 $364.4 $773.6 $631.0 $822.9 $442.9 $536.6 

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $42 million primarily related to the PPA with KGPCo.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $330 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $19 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
(d)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(e)Amounts include affiliated and nonaffiliated revenues.
Six Months Ended June 30, 2023
Vertically Integrated UtilitiesTransmission and Distribution UtilitiesAEP Transmission HoldcoGeneration & MarketingCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$2,132.4 $1,230.9 $— $— $— $— $3,363.3 
Commercial Revenues1,276.1 734.2 — — — — 2,010.3 
Industrial Revenues (a)1,369.2 365.0 — — — (0.3)1,733.9 
Other Retail Revenues115.7 24.4 — — — — 140.1 
Total Retail Revenues4,893.4 2,354.5 — — — (0.3)7,247.6 
Wholesale and Competitive Retail Revenues:
Generation Revenues324.2 — — 52.0 — 0.1 376.3 
Transmission Revenues (b)228.2 348.3 905.9 — — (804.6)677.8 
Renewable Generation Revenues (a)— — — 54.4 — (3.2)51.2 
Retail, Trading and Marketing Revenues (c)— — — 821.4 0.9 (10.0)812.3 
Total Wholesale and Competitive Retail Revenues552.4 348.3 905.9 927.8 0.9 (817.7)1,917.6 
Other Revenues from Contracts with Customers (d)94.5 98.9 7.9 6.8 58.0 (83.6)182.5 
Total Revenues from Contracts with Customers
5,540.3 2,801.7 913.8 934.6 58.9 (901.6)9,347.7 
Other Revenues:
Alternative Revenue Programs (a) (e)(8.0)(14.5)0.3 — — (3.4)(25.6)
Other Revenues (a) (f)— 17.2 — (276.2)3.2 (2.9)(258.7)
Total Other Revenues(8.0)2.7 0.3 (276.2)3.2 (6.3)(284.3)
Total Revenues$5,532.3 $2,804.4 $914.1 $658.4 $62.1 $(907.9)$9,063.4 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $712 million. The affiliated revenue for Vertically Integrated Utilities was $80 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $10 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Corporate and Other was $55 million. The remaining affiliated amounts were immaterial.
(e)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(f)Generation & Marketing includes economic hedge activity.
Six Months Ended June 30, 2022
Vertically Integrated UtilitiesTransmission and Distribution UtilitiesAEP Transmission HoldcoGeneration & MarketingCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$2,130.1 $1,162.2 $— $— $— $— $3,292.3 
Commercial Revenues1,197.7 621.4 — — — — 1,819.1 
Industrial Revenues1,204.8 295.8 — — — (0.4)1,500.2 
Other Retail Revenues100.3 24.4 — — — — 124.7 
Total Retail Revenues4,632.9 2,103.8 — — — (0.4)6,736.3 
Wholesale and Competitive Retail Revenues:
Generation Revenues375.5 — — 123.3 — 0.1 498.9 
Transmission Revenues (a)214.1 319.8 836.1 — — (693.8)676.2 
Renewable Generation Revenues (b)— — — 60.6 — (3.7)56.9 
Retail, Trading and Marketing Revenues (c)
— — — 797.1 4.5 (11.3)790.3 
Total Wholesale and Competitive Retail Revenues
589.6 319.8 836.1 981.0 4.5 (708.7)2,022.3 
Other Revenues from Contracts with Customers (d)110.8 119.7 — 10.2 34.8 (39.7)235.8 
Total Revenues from Contracts with Customers
5,333.3 2,543.3 836.1 991.2 39.3 (748.8)8,994.4 
Other Revenues:
Alternative Revenue Programs (b) (e)2.5 (8.0)(45.9)— — (11.8)(63.2)
Other Revenues (b) (f)0.1 13.1 — 287.7 5.1 (4.9)301.1 
Total Other Revenues2.6 5.1 (45.9)287.7 5.1 (16.7)237.9 
Total Revenues$5,335.9 $2,548.4 $790.2 $1,278.9 $44.4 $(765.5)$9,232.3 

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $661 million. The remaining affiliated amounts were immaterial.
(b)Amounts include affiliated and nonaffiliated revenues.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $11 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Corporate and Other was $19 million. The remaining affiliated amounts were immaterial.
(e)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(f)Generation & Marketing includes economic hedge activity.
Six Months Ended June 30, 2023
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$275.6 $— $795.3 $424.8 $955.3 $357.4 $361.0 
Commercial Revenues197.9 — 334.9 280.3 536.3 240.8 297.3 
Industrial Revenues (a)74.5 — 378.3 308.5 290.4 206.1 214.8 
Other Retail Revenues17.0 — 51.4 2.5 7.4 52.5 5.2 
Total Retail Revenues565.0 — 1,559.9 1,016.1 1,789.4 856.8 878.3 
Wholesale Revenues:
Generation Revenues (b)— — 144.4 167.5 — 5.2 83.5 
Transmission Revenues (c)309.4 883.4 85.3 17.7 38.9 21.2 81.2 
Total Wholesale Revenues309.4 883.4 229.7 185.2 38.9 26.4 164.7 
Other Revenues from Contracts with Customers (d)20.4 7.8 24.8 66.4 78.7 9.5 14.9 
Total Revenues from Contracts with Customers
894.8 891.2 1,814.4 1,267.7 1,907.0 892.7 1,057.9 
Other Revenues:
Alternative Revenue Program (a) (e)(4.1)(4.7)(0.2)(5.5)(10.4)(1.0)(4.2)
Other Revenues (a)— — — — 17.1 — — 
Total Other Revenues(4.1)(4.7)(0.2)(5.5)6.7 (1.0)(4.2)
Total Revenues$890.7 $886.5 $1,814.2 $1,262.2 $1,913.7 $891.7 $1,053.7 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $85 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $706 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $35 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
(e)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
Six Months Ended June 30, 2022
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$316.8 $— $771.2 $427.0 $845.4 $351.1 $364.5 
Commercial Revenues205.5 — 306.5 265.2 415.8 218.7 276.5 
Industrial Revenues67.2 — 315.7 296.5 228.7 171.1 181.8 
Other Retail Revenues17.7 — 40.8 2.5 6.7 47.0 6.8 
Total Retail Revenues607.2 — 1,434.2 991.2 1,496.6 787.9 829.6 
Wholesale Revenues:
Generation Revenues (a)— — 119.7 184.6 — 9.8 118.6 
Transmission Revenues (b)276.9 806.4 81.9 17.5 42.9 18.7 74.5 
Total Wholesale Revenues276.9 806.4 201.6 202.1 42.9 28.5 193.1 
Other Revenues from Contracts with Customers (c)
14.9 (0.1)44.9 55.7 104.8 15.0 11.3 
Total Revenues from Contracts with Customers
899.0 806.3 1,680.7 1,249.0 1,644.3 831.4 1,034.0 
Other Revenues:
Alternative Revenue Program (d) (e)(3.5)(41.5)0.1 7.3 (4.5)(0.9)(2.6)
Other Revenues (e)— — 0.1 (0.1)13.1 — — 
Total Other Revenues(3.5)(41.5)0.2 7.2 8.6 (0.9)(2.6)
Total Revenues$895.5 $764.8 $1,680.9 $1,256.2 $1,652.9 $830.5 $1,031.4 

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $78 million primarily relating to the PPA with KGPCo.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $653 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $29 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.
(d)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues.
(e)Amounts include affiliated and nonaffiliated revenues.

Fixed Performance Obligations (Applies to AEP, APCo and I&M)

The following table represents the Registrants’ remaining fixed performance obligations satisfied over time as of June 30, 2023. Fixed performance obligations primarily include electricity sales for fixed amounts of energy and stand ready services into PJM’s RPM market. The Registrants elected to apply the exemption to not disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less. Due to the annual establishment of revenue requirements, transmission revenues are excluded from the table below. The Registrant Subsidiaries amounts shown in the table below include affiliated and nonaffiliated revenues.
Company20232024-20252026-2027After 2027Total
(in millions)
AEP$43.6 $161.4 $137.1 $60.9 $403.0 
APCo8.1 32.2 25.4 11.6 77.3 
I&M2.2 8.8 8.8 4.5 24.3 
Contract Assets and Liabilities

Contract assets are recognized when the Registrants have a right to consideration that is conditional upon the occurrence of an event other than the passage of time, such as future performance under a contract. The Registrants did not have material contract assets as of June 30, 2023 and December 31, 2022.

When the Registrants receive consideration, or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, they recognize a contract liability on the balance sheets in the amount of that consideration. Revenue for such consideration is subsequently recognized in the period or periods in which the remaining performance obligations in the contract are satisfied. The Registrants’ contract liabilities typically arise from services provided under joint use agreements for utility poles. The Registrants did not have material contract liabilities as of June 30, 2023 and December 31, 2022.

Accounts Receivable from Contracts with Customers

Accounts receivable from contracts with customers are presented on the Registrant Subsidiaries’ balance sheets within the Accounts Receivable - Customers line item. The Registrant Subsidiaries’ balances for receivables from contracts that are not recognized in accordance with the accounting guidance for “Revenue from Contracts with Customers” included in Accounts Receivable - Customers were not material as of June 30, 2023 and December 31, 2022. See “Securitized Accounts Receivable - AEP Credit” section of Note 12 for additional information.

The following table represents the amount of affiliated accounts receivable from contracts with customers included in Accounts Receivable - Affiliated Companies on the Registrant Subsidiaries’ balance sheets:
CompanyJune 30, 2023December 31, 2022
(in millions)
AEP Texas$— $0.1 
AEPTCo123.1 113.8 
APCo68.1 64.5 
I&M47.3 75.3 
OPCo68.6 49.9 
PSO30.6 18.8 
SWEPCo42.4 19.1