Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2024

Notional Volume of Derivative Instruments

	Notional Volume of Derivative Instruments
	September 30, 2024														December 31, 2023
Primary Risk Exposure	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo		AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Commodity:
Power (MWhs)	306.0		—		38.6		8.5		2.1		7.0		6.5		246.8		—		16.8		5.9		2.2		4.1		2.9
Natural Gas (MMBtus)	161.5		—		47.1		—		—		36.4		14.7		151.6		—		37.3		—		—		34.9		17.9
Heating Oil and Gasoline (Gallons)	7.2		1.7		0.9		1.6		1.1		0.7		0.8		6.5		1.8		1.0		0.6		1.2		0.7		0.9
Interest Rate (USD)	$	59.3	$	—	$	—	$	—	$	—	$	—	$	—	$	80.1	$	—	$	—	$	—	$	—	$	—	$	—
Interest Rate on Long-term Debt (USD)	$	1,750.0	$	—	$	—	$	—	$	—	$	400.0	$	—	$	1,300.0	$	150.0	$	—	$	—	$	—	$	—	$	—

Fair Value of Derivative Instruments

	September 30, 2024
	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
Assets:	(in millions)
Current Risk Management Assets
Risk Management Contracts - Commodity	$	444.4	$	—	$	54.4	$	22.7	$	—	$	28.7	$	24.6
Hedging Contracts - Commodity	41.2		—		—		—		—		—		—
Hedging Contracts - Interest Rate	—		—		—		—		—		—		—
Total Current Risk Management Assets	485.6		—		54.4		22.7		—		28.7		24.6
Long-term Risk Management Assets
Risk Management Contracts - Commodity	448.3		—		0.8		—		—		0.6		—
Hedging Contracts - Commodity	63.3		—		—		—		—		—		—
Hedging Contracts - Interest Rate	—		—		—		—		—		—		—
Total Long-term Risk Management Assets	511.6		—		0.8		—		—		0.6		—
Total Assets	$	997.2	$	—	$	55.2	$	22.7	$	—	$	29.3	$	24.6
Liabilities:
Current Risk Management Liabilities
Risk Management Contracts - Commodity	$	334.9	$	0.5	$	15.9	$	1.5	$	6.6	$	11.9	$	5.6
Hedging Contracts - Commodity	6.7		—		—		—		—		—		—
Hedging Contracts - Interest Rate	51.7		—		—		—		—		10.9		—
Total Current Risk Management Liabilities	393.3		0.5		15.9		1.5		6.6		22.8		5.6
Long-term Risk Management Liabilities
Risk Management Contracts - Commodity	391.1		0.1		6.7		0.1		45.4		0.6		—
Hedging Contracts - Commodity	2.9		—		—		—		—		—		—
Hedging Contracts - Interest Rate	40.9		—		—		—		—		—		—
Total Long-term Risk Management Liabilities	434.9		0.1		6.7		0.1		45.4		0.6		—
Total Liabilities	$	828.2	$	0.6	$	22.6	$	1.6	$	52.0	$	23.4	$	5.6
Total MTM Derivative Contract Net Assets (Liabilities) Recognized	$	169.0	$	(0.6)	$	32.6	$	21.1	$	(52.0)	$	5.9	$	19.0

	December 31, 2023
	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
Assets:	(in millions)
Current Risk Management Assets
Risk Management Contracts - Commodity	$	555.1	$	—	$	24.6	$	30.1	$	—	$	19.7	$	12.0
Hedging Contracts - Commodity	56.7		—		—		—		—		—		—
Hedging Contracts - Interest Rate	—		—		—		—		—		—		—
Total Current Risk Management Assets	611.8		—		24.6		30.1		—		19.7		12.0
Long-term Risk Management Assets
Risk Management Contracts - Commodity	468.8		—		0.3		12.0		—		—		0.5
Hedging Contracts - Commodity	86.8		—		—		—		—		—		—
Hedging Contracts - Interest Rate	—		—		—		—		—		—		—
Total Long-term Risk Management Assets	555.6		—		0.3		12.0		—		—		0.5
Total Assets	$	1,167.4	$	—	$	24.9	$	42.1	$	—	$	19.7	$	12.5
Liabilities:
Current Risk Management Liabilities
Risk Management Contracts - Commodity	$	588.0	$	0.2	$	18.5	$	5.4	$	6.9	$	29.7	$	14.9
Hedging Contracts - Commodity	8.2		—		—		—		—		—		—
Hedging Contracts - Interest Rate	50.5		2.7		—		—		—		—		—
Total Current Risk Management Liabilities	646.7		2.9		18.5		5.4		6.9		29.7		14.9
Long-term Risk Management Liabilities
Risk Management Contracts - Commodity	377.6		—		6.9		0.2		43.9		1.0		1.7
Hedging Contracts - Commodity	2.2		—		—		—		—		—		—
Hedging Contracts - Interest Rate	56.9		—		—		—		—		—		—
Total Long-term Risk Management Liabilities	436.7		—		6.9		0.2		43.9		1.0		1.7
Total Liabilities	$	1,083.4	$	2.9	$	25.4	$	5.6	$	50.8	$	30.7	$	16.6
Total MTM Derivative Contract Net Assets (Liabilities) Recognized	$	84.0	$	(2.9)	$	(0.5)	$	36.5	$	(50.8)	$	(11.0)	$	(4.1)

	September 30, 2024
	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
Assets:	(in millions)
Current Risk Management Assets
Gross Amounts Recognized	$	485.6	$	—	$	54.4	$	22.7	$	—	$	28.7	$	24.6
Gross Amounts Offset	(248.9)		—		(7.3)		(1.0)		—		(0.3)		(0.5)
Net Amounts Presented	236.7		—		47.1		21.7		—		28.4		24.1
Long-term Risk Management Assets
Gross Amounts Recognized	511.6		—		0.8		—		—		0.6		—
Gross Amounts Offset	(253.3)		—		(0.8)		—		—		(0.5)		—
Net Amounts Presented	258.3		—		—		—		—		0.1		—
Total Assets	$	495.0	$	—	$	47.1	$	21.7	$	—	$	28.5	$	24.1
Liabilities:
Current Risk Management Liabilities
Gross Amounts Recognized	$	393.3	$	0.5	$	15.9	$	1.5	$	6.6	$	22.8	$	5.6
Gross Amounts Offset	(241.3)		(0.5)		(8.3)		(1.2)		(0.3)		(0.5)		(0.8)
Net Amounts Presented	152.0		—		7.6		0.3		6.3		22.3		4.8
Long-term Risk Management Liabilities
Gross Amounts Recognized	434.9		0.1		6.7		0.1		45.4		0.6		—
Gross Amounts Offset	(233.3)		(0.1)		(0.8)		—		(0.1)		(0.5)		—
Net Amounts Presented	201.6		—		5.9		0.1		45.3		0.1		—
Total Liabilities	$	353.6	$	—	$	13.5	$	0.4	$	51.6	$	22.4	$	4.8
Total MTM Derivative Contract Net Assets (Liabilities)	$	141.4	$	—	$	33.6	$	21.3	$	(51.6)	$	6.1	$	19.3

	December 31, 2023
	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
Assets:	(in millions)
Current Risk Management Assets
Gross Amounts Recognized	$	611.8	$	—	$	24.6	$	30.1	$	—	$	19.7	$	12.0
Gross Amounts Offset	(394.3)		—		(2.2)		(2.3)		—		(0.7)		(0.4)
Net Amounts Presented	217.5		—		22.4		27.8		—		19.0		11.6
Long-term Risk Management Assets
Gross Amounts Recognized	555.6		—		0.3		12.0		—		—		0.5
Gross Amounts Offset	(234.4)		—		(0.3)		(0.2)		—		—		(0.5)
Net Amounts Presented	321.2		—		—		11.8		—		—		—
Total Assets	$	538.7	$	—	$	22.4	$	39.6	$	—	$	19.0	$	11.6
Liabilities:
Current Risk Management Liabilities
Gross Amounts Recognized	$	646.7	$	2.9	$	18.5	$	5.4	$	6.9	$	29.7	$	14.9
Gross Amounts Offset	(417.1)		(0.2)		(2.6)		(3.4)		(0.1)		(0.8)		(0.5)
Net Amounts Presented	229.6		2.7		15.9		2.0		6.8		28.9		14.4
Long-term Risk Management Liabilities
Gross Amounts Recognized	436.7		—		6.9		0.2		43.9		1.0		1.7
Gross Amounts Offset	(194.9)		—		(0.3)		(0.2)		—		—		(0.5)
Net Amounts Presented	241.8		—		6.6		—		43.9		1.0		1.2
Total Liabilities	$	471.4	$	2.7	$	22.5	$	2.0	$	50.7	$	29.9	$	15.6
Total MTM Derivative Contract Net Assets (Liabilities)	$	67.3	$	(2.7)	$	(0.1)	$	37.6	$	(50.7)	$	(10.9)	$	(4.0)

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on Risk Management Contracts

	Three Months Ended September 30, 2024
Location of Gain (Loss)	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	(1.1)	$	—	$	—	$	—	$	—	$	—	$	—
Generation & Marketing Revenues	(67.1)		—		—		—		—		—		—
Electric Generation, Transmission and Distribution Revenues	—		—		0.1		(1.2)		—		—		—
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	0.7		—		0.5		—		—		—		—
Other Operation	(0.3)		(0.1)		—		(0.1)		—		—		—
Maintenance	(0.5)		(0.1)		(0.1)		(0.1)		(0.1)		—		(0.1)
Regulatory Assets (a)	3.1		(0.6)		(3.9)		—		(9.2)		11.6		6.5
Regulatory Liabilities (a)	60.8		—		9.8		2.9		—		23.8		21.8
Total Gain (Loss) on Risk Management Contracts	$	(4.4)	$	(0.8)	$	6.4	$	1.5	$	(9.3)	$	35.4	$	28.2

	Three Months Ended September 30, 2023
Location of Gain (Loss)	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	(9.5)	$	—	$	—	$	—	$	—	$	—	$	—
Generation & Marketing Revenues	(1.4)		—		—		—		—		—		—
Electric Generation, Transmission and Distribution Revenues	—		—		0.1		(9.6)		—		—		—
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	0.2		—		0.2		—		—		—		—
Maintenance	(0.4)		(0.1)		(0.1)		—		(0.1)		(0.1)		(0.1)
Regulatory Assets (a)	1.2		0.5		1.2		1.7		0.5		(3.5)		(1.1)
Regulatory Liabilities (a)	43.0		0.4		11.9		1.6		—		12.9		12.7
Total Gain (Loss) on Risk Management Contracts	$	33.1	$	0.8	$	13.3	$	(6.3)	$	0.4	$	9.3	$	11.5

	Nine Months Ended September 30, 2024
Location of Gain (Loss)	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	(22.5)	$	—	$	—	$	—	$	—	$	—	$	—
Generation & Marketing Revenues	(164.8)		—		—		—		—		—		—
Electric Generation, Transmission and Distribution Revenues	—		—		0.2		(22.7)		—		—		—
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	2.4		—		2.1		0.1		—		—		—
Maintenance	0.1		—		—		—		—		—		—
Regulatory Assets (a)	48.3		(0.3)		11.2		3.0		(3.7)		19.3		11.6
Regulatory Liabilities (a)	206.0		—		35.5		12.2		—		75.9		71.4
Total Gain (Loss) on Risk Management Contracts	$	69.5	$	(0.3)	$	49.0	$	(7.4)	$	(3.7)	$	95.2	$	83.0

	Nine Months Ended September 30, 2023
Location of Gain (Loss)	AEP		AEP Texas		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	2.2	$	—	$	—	$	—	$	—	$	—	$	—
Generation & Marketing Revenues	(290.6)		—		—		—		—		—		—
Electric Generation, Transmission and Distribution Revenues	—		—		0.1		2.1		—		—		—
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	2.2		—		2.1		0.1		—		—		—
Other Operation	(0.1)		—		—		—		—		—		—
Maintenance	(0.6)		(0.2)		(0.1)		—		(0.1)		(0.1)		(0.1)
Regulatory Assets (a)	(36.0)		—		—		(0.4)		(24.6)		(7.0)		(3.5)
Regulatory Liabilities (a)	143.5		0.4		3.1		6.4		—		73.3		58.2
Total Gain (Loss) on Risk Management Contracts	$	(179.4)	$	0.2	$	5.2	$	8.2	$	(24.7)	$	66.2	$	54.6

(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 Fair Value Hedges on the Condensed Balance Sheet

	Carrying Amount of the Hedged Liabilities				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
	(in millions)
Long-term Debt (a) (b)	$	(890.1)	$	(878.2)	$	57.5	$	68.4

(a)Amounts included within Noncurrent Liabilities line item Long-term Debt on the Balance Sheet.

(b)Amounts include $(24) million and $(30) million as of September 30, 2024 and December 31, 2023, respectively, for the fair value hedge adjustment of hedged debt obligations for which hedge accounting has been discontinued.

Gain (Loss) on Hedging Instruments

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in millions)
Gain (Loss) on Interest Rate Contracts:
Fair Value Hedging Instruments (a)	$	14.8	$	(13.4)	$	16.7	$	(10.7)
Fair Value Portion of Long-term Debt (a)	(14.8)		13.4		(16.7)		10.7

(a)Gain (Loss) is included in Interest Expense on the statements of income.

Impact of Cash Flow Hedges on the Condensed Balance Sheet

	Impact of Cash Flow Hedges on the Registrants’ Balance Sheets
	September 30, 2024								December 31, 2023
					Portion Expected to								Portion Expected to
	AOCI				be Reclassed to				AOCI				be Reclassed to
	Gain (Loss)				Net Income During				Gain (Loss)				Net Income During
	Net of Tax				the Next Twelve Months				Net of Tax				the Next Twelve Months
	Commodity		Interest Rate		Commodity		Interest Rate		Commodity		Interest Rate		Commodity		Interest Rate
	(in millions)
AEP	$	74.9	$	(8.2)	$	27.3	$	2.9	$	104.9	$	(8.1)	$	38.3	$	3.2
AEP Texas	—		6.5		—		0.7		—		0.5		—		0.2
APCo	—		5.3		—		0.8		—		5.9		—		0.8
I&M	—		(5.2)		—		(0.4)		—		(5.5)		—		(0.4)
PSO	—		(8.8)		—		(0.6)		—		(0.2)		—		—
SWEPCo	—		1.1		—		0.3		—		1.3		—		0.3