XML 120 R77.htm IDEA: XBRL DOCUMENT v3.26.1
DERIVATIVES AND HEDGING (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Volume of Derivative Instruments
The following table represents the gross notional volume of the Registrants’ outstanding derivative contracts:
Notional Volume of Derivative Instruments
March 31, 2026December 31, 2025
Primary Risk
Exposure		AEPAEP TexasAPCoI&MOPCoPSOSWEPCoAEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Commodity:     
Power (MWhs)292 — 9 4 2 3 2 327 — 23 8 2 8 6 
Natural Gas (MMBtus)190 — 46 — — 50 26 166 — 48 — — 44 26 
Heating Oil and Gasoline (Gallons)9 2 1 2 1 1 1 8 2 1 2 1 1 1 
Interest Rate (USD)$30 $— $— $— $— $— $— $40 $— $— $— $— $— $— 
Interest Rate on Long-term Debt (USD)$500 $— $— $— $— $— $— $500 $— $— $— $— $— $— 
Schedule of Fair Value of Derivative Instruments
The following tables represent the gross fair value of the Registrants’ derivative activity on the balance sheets. The derivative instruments are disclosed as gross. They 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.” Unless shown as a separate line on the balance sheets due to materiality, Current Risk Management Assets are included in Prepayments and Other Current Assets, Long-term Risk Management Assets are included in Deferred Charges and Other Noncurrent Assets, Current Risk Management Liabilities are included in Other Current Liabilities and Long-term Risk Management Liabilities are included in Deferred Credits and Other Noncurrent Liabilities on the balance sheets.

March 31, 2026
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Risk Management Contracts - Commodity$798 $1 $24 $18 $1 $22 $17 
Hedging Contracts - Commodity64 — — — — — — 
Total Current Risk Management Assets862 1 24 18 1 22 17 
Long-term Risk Management Assets
Risk Management Contracts - Commodity495 — 2 — — — — 
Hedging Contracts - Commodity51 — — — — — — 
Total Long-term Risk Management Assets546 — 2 — — — — 
Total Assets$1,408 $1 $26 $18 $1 $22 $17 
Liabilities:
Current Risk Management Liabilities
Risk Management Contracts - Commodity$693 $— $9 $20 $4 $30 $11 
Hedging Contracts - Commodity20 — — — — — — 
Hedging Contracts - Interest Rate16 — — — — — — 
Total Current Risk Management Liabilities729 — 9 20 4 30 11 
Long-term Risk Management Liabilities
Risk Management Contracts - Commodity419 — 1 — 28 5 3 
Hedging Contracts - Commodity16 — — — — — — 
Hedging Contracts - Interest Rate16 — — — — — — 
Total Long-term Risk Management Liabilities451 — 1 — 28 5 3 
Total Liabilities$1,180 $— $10 $20 $32 $35 $14 
Total MTM Derivative Contract Net Assets (Liabilities) Recognized$228 $1 $16 $(2)$(31)$(13)$3 
December 31, 2025
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Risk Management Contracts - Commodity$720 $— $82 $23 $— $44 $37 
Hedging Contracts - Commodity56 — — — — — — 
Total Current Risk Management Assets776 — 82 23 — 44 37 
Long-term Risk Management Assets
Risk Management Contracts - Commodity518 — 2 1 — — — 
Hedging Contracts - Commodity63 — — — — — — 
Total Long-term Risk Management Assets581 — 2 1 — — — 
Total Assets$1,357 $— $84 $24 $— $44 $37 
Liabilities:
Current Risk Management Liabilities
Risk Management Contracts - Commodity$500 $— $5 $13 $5 $29 $11 
Hedging Contracts - Commodity16 — — — — — — 
Hedging Contracts - Interest Rate16 — — — — — — 
Total Current Risk Management Liabilities532 — 5 13 5 29 11 
Long-term Risk Management Liabilities
Risk Management Contracts - Commodity420 — 1 1 28 1 2 
Hedging Contracts - Commodity5 — — — — — — 
Hedging Contracts - Interest Rate13 — — — — — — 
Total Long-term Risk Management Liabilities438 — 1 1 28 1 2 
Total Liabilities$970 $— $6 $14 $33 $30 $13 
Total MTM Derivative Contract Net Assets (Liabilities) Recognized$387 $— $78 $10 $(33)$14 $24 
Offsetting Assets and Liabilities

The following tables show the net amounts of assets and liabilities presented on the balance sheets. The gross amounts offset include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with accounting guidance for “Derivatives and Hedging.” All derivative contracts subject to a master netting arrangement or similar agreement are offset on the balance sheets.

March 31, 2026
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Gross Amounts Recognized$862 $1 $24 $18 $1 $22 $17 
Gross Amounts Offset(616)(1)(2)(15)(1)(1)(2)
Net Amounts Presented246 — 22 3 — 21 15 
Long-term Risk Management Assets
Gross Amounts Recognized546 — 2 — — — — 
Gross Amounts Offset(313)— (2)— — — — 
Net Amounts Presented233 — — — — — — 
Total Assets$479 $— $22 $3 $— $21 $15 
Liabilities:
Current Risk Management Liabilities
Gross Amounts Recognized$729 $— $9 $20 $4 $30 $11 
Gross Amounts Offset(599)— (2)(20)— — (1)
Net Amounts Presented130 — 7 — 4 30 10 
Long-term Risk Management Liabilities
Gross Amounts Recognized451 — 1 — 28 5 3 
Gross Amounts Offset(286)— (1)— — — — 
Net Amounts Presented165 — — — 28 5 3 
Total Liabilities$295 $— $7 $— $32 $35 $13 
Total MTM Derivative Contract Net Assets (Liabilities)$184 $— $15 $3 $(32)$(14)$2 

December 31, 2025
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Gross Amounts Recognized$776 $— $82 $23 $— $44 $37 
Gross Amounts Offset(424)— (1)(13)— (2)(2)
Net Amounts Presented352 — 81 10 — 42 35 
Long-term Risk Management Assets
Gross Amounts Recognized581 — 2 1 — — — 
Gross Amounts Offset(316)— (1)(1)— — — 
Net Amounts Presented265 — 1 — — — — 
Total Assets$617 $— $82 $10 $— $42 $35 
Liabilities:
Current Risk Management Liabilities
Gross Amounts Recognized$532 $— $5 $13 $5 $29 $11 
Gross Amounts Offset(400)— (2)(13)— (2)(2)
Net Amounts Presented132 — 3 — 5 27 9 
Long-term Risk Management Liabilities
Gross Amounts Recognized438 — 1 1 28 1 2 
Gross Amounts Offset(260)— (1)(1)— — — 
Net Amounts Presented178 — — — 28 1 2 
Total Liabilities$310 $— $3 $— $33 $28 $11 
Total MTM Derivative Contract Net Assets (Liabilities)$307 $— $79 $10 $(33)$14 $24 
Schedule of Amount of Gain (Loss) Recognized on Risk Management Contracts
The tables below present the Registrants’ amount of gain (loss) recognized on risk management contracts:

Amount of Gain (Loss) Recognized on Risk Management Contracts

Three Months Ended March 31, 2026
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$(30)$— $— $— $— $— $— 
Generation & Marketing Revenues99 — — — — — — 
Electric Generation, Transmission and Distribution Revenues— — — (31)— — — 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation9 — 9 — — — — 
Regulatory Assets (a)(6)— (3)— 2 (3)(3)
Regulatory Liabilities (a)181 2 103 7 3 35 10 
Total Gain (Loss) on Risk Management Contracts$253 $2 $109 $(24)$5 $32 $7 

Three Months Ended March 31, 2025
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$(33)$— $— $— $— $— $— 
Generation & Marketing Revenues(143)— — — — — — 
Electric Generation, Transmission and Distribution Revenues— — — (33)— — — 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation3 — 3 — — — — 
Regulatory Assets (a)53 — — — 48 4 1 
Regulatory Liabilities (a)80 — 39 5 3 12 14 
Total Gain (Loss) on Risk Management Contracts$(40)$— $42 $(28)$51 $16 $15 

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.
Schedule of Impact of Fair Value Hedges on Balance Sheet
The following table shows the impacts recognized on the balance sheets related to the hedged items in fair value hedging relationships:
Carrying Amount of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
March 31, 2026December 31, 2025March 31, 2026December 31, 2025
(in millions)
Long-term Debt (a) (b)$(479)$(484)$20 $15 

(a)Amounts included within Long-term Debt on the balance sheet.
(b)Amounts include $(13) million and $(14) million as of March 31, 2026 and December 31, 2025, respectively, for the fair value hedge adjustment of hedged debt obligations for which hedge accounting has been discontinued.
Schedule of Gain (Loss) on Hedging Instruments
The pretax effects of fair value hedge accounting on income were as follows:

Three Months Ended March 31,
20262025
(in millions)
Gain (Loss) on Interest Rate Contracts:
Fair Value Hedging Instruments (a)$(3)$3 
Fair Value Portion of Long-term Debt (a)3 (3)

(a)Gain (Loss) is included in Interest Expense on the statements of income.
Schedule of Impact of Cash Flow Hedges on the Balance Sheet
Cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on the balance sheets were:
Impact of Cash Flow Hedges on the Registrants’ Balance Sheets
March 31, 2026December 31, 2025
Portion Expected toPortion Expected to
AOCIbe Reclassed toAOCIbe Reclassed to
Gain (Loss)Net Income DuringGain (Loss)Net Income During
Net of Taxthe Next Twelve MonthsNet of Taxthe Next Twelve Months
CommodityInterest RateCommodityInterest RateCommodityInterest RateCommodityInterest Rate
(in millions)
AEP$63 $(1)$35 $— $78 $(1)$31 $— 
AEP Texas— 6 — 1 — 6 — 1 
APCo— 4 — 1 — 4 — 1 
I&M— (5)— — — (5)— — 
PSO— 2 — — — 2 — — 
SWEPCo— 1 — — — 1 — —