XML 60 R19.htm IDEA: XBRL DOCUMENT v3.24.3
Voluntary Severance Program
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure VOLUNTARY SEVERANCE PROGRAM
In April 2024, management announced a voluntary severance program designed to achieve a reduction in the size of AEP’s workforce. Approximately 7,400 of AEP’s 16,800 employees were eligible to participate in the program. Approximately 1,000 employees chose to take the voluntary severance package and substantially all terminated employment in July 2024. The severance program provides two weeks of base pay for every year of service with a minimum of four weeks and a maximum of 52 weeks of base pay. Certain positions impacted by the voluntary severance program have been and will continue to be refilled to maintain safe, effective and efficient operations. Net savings from the program will help offset increasing operating expenses and high interest costs in order to keep electricity costs affordable for customers.

AEP recorded a charge to expense in the second quarter of 2024 related to this voluntary severance program.

AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Severance Expense Incurred$122.0 $19.8 $10.7 $26.5 $14.8 $14.8 $10.1 $16.9 
Settled/Adjustments111.0 19.5 10.7 24.7 14.3 14.4 9.8 15.9 
Remaining Balance as of September 30, 2024
$11.0 $0.3 $— $1.8 $0.5 $0.4 $0.3 $1.0 

These expenses were primarily included in Other Operation and Maintenance on the statements of income and Other Current Liabilities on the balance sheets. The voluntary severance program has not triggered any material curtailment or settlement accounting considerations under the accounting guidance for “Compensation - Retirement Benefits”.
AEP continues to monitor settlements under the qualified pension plan and will assess if the threshold of $306 million is reached in the fourth quarter of 2024. In the event the settlement threshold is reached during 2024, settlement accounting would result in a plan remeasurement and approximately $75 million to $100 million of the net actuarial loss to be recognized in AEP’s Statement of Income. If the settlement threshold is reached, AEP expects to seek recovery for the portion of the loss related to regulated operations.