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Business Segments
 6 Months Ended
Jun. 30, 2017
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.
AEP Transmission Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.
Appalachian Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.
Indiana Michigan Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.
Ohio Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.
Public Service Co Of Oklahoma [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.
Southwestern Electric Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved returns on equity.
•
Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,095.7

 
$
1,026.6

 
$
53.0

 
$
386.5

 
$
14.7

 
$
—

 
$
3,576.5

Other Operating Segments
24.8

 
26.9

 
194.3

 
24.1

 
14.2

 
(284.3
)
 
—

Total Revenues
$
2,120.5

 
$
1,053.5

 
$
247.3

 
$
410.6

 
$
28.9

 
$
(284.3
)
 
$
3,576.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
121.4

 
$
111.2

 
$
129.0

 
$
26.4

 
$
(11.8
)
 
$
—

 
$
376.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,365.5

 
$
2,093.0

 
$
80.7

 
$
945.3

 
$
25.3

 
$
—

 
$
7,509.8

Other Operating Segments
45.4

 
46.9

 
322.7

 
56.7

 
30.1

 
(501.8
)
 
—

Total Revenues
$
4,410.9

 
$
2,139.9

 
$
403.4

 
$
1,002.0

 
$
55.4

 
$
(501.8
)
 
$
7,509.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
—

 
—

 
—

Net Income (Loss)
$
341.9

 
$
230.3

 
$
201.8

 
$
212.6

 
$
(16.2
)
 
$
—

 
$
970.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
27.8

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.1

 
$
140.0

 
$
120.4

 
$
25.3

 
$
—

 
$
1,007.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
42,313.2

 
$
15,292.0

 
$
6,012.1

 
$
518.4

 
$
365.6

 
$
(366.5
)
(b)
$
64,134.8

Accumulated Depreciation and Amortization
 
12,880.0

 
3,737.9

 
137.0

 
145.1

 
194.0

 
(186.4
)
(b)
16,907.6

Total Property Plant and Equipment - Net
 
$
29,433.2

 
$
11,554.1

 
$
5,875.1

 
$
373.3

 
$
171.6

 
$
(180.1
)
(b)
$
47,227.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,914.1

 
$
15,092.4

 
$
7,024.9

 
$
1,905.7

 
$
21,147.9

 
$
(20,345.9
)
(b) (c)
$
62,739.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,449.6

 
$
756.9

 
$
—

 
$
—

 
$
548.5

 
$
—

 
$
2,755.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
10,347.5

 
4,088.0

 
2,063.5

 
—

 
297.9

 
—

 
16,796.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,837.1

 
$
4,844.9

 
$
2,063.5

 
$
32.2

 
$
846.4

 
$
(72.2
)
 
$
19,551.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments (Applies to APCo, I&M, OPCo, PSO and SWEPCo)

The Registrant Subsidiaries, besides AEPTCo, each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  Other activities are insignificant. Operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.

The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2017 and 2016 and reportable segment balance sheet information as of June 30, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
44.0

 
$
—

 
$
—

 
$
44.0

Sales to AEP Affiliates
185.5

 
—

 
(0.1
)
 
185.4

Total Revenues
$
229.5

 
$
—

 
$
(0.1
)
 
$
229.4

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
19.4

 
$
(19.3
)
(a)
$
0.1

Interest Expense
15.9

 
19.1

 
(19.3
)
(a)
15.7

Income Tax Expense
55.7

 
0.1

 
—

 
55.8

Equity Earnings in State Transcos
—

 
107.4

 
(107.4
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
107.4

 
$
107.4

 
$
(107.4
)
(b)
$
107.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
34.1

 
$
—

 
$
—

 
$
34.1

Sales to AEP Affiliates
119.0

 
—

 
—

 
119.0

Total Revenues
$
153.1

 
$
—

 
$
—

 
$
153.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
13.9

 
$
(13.8
)
(a)
$
0.1

Interest Expense
10.5

 
13.9

 
(13.9
)
(a)
10.5

Income Tax Expense
37.0

 
—

 
—

 
37.0

Equity Earnings in State Transcos
—

 
74.8

 
(74.8
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
74.8

 
$
74.8

 
$
(74.8
)
(b)
$
74.8

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
63.3

 
$
—

 
$
—

 
$
63.3

Sales to AEP Affiliates
318.9

 
—

 
(0.1
)
 
318.8

Total Revenues
$
382.2

 
$
—

 
$
(0.1
)
 
$
382.1

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
0.1

 
$
38.5

 
$
(38.3
)
(a)
$
0.3

Interest Expense
31.7

 
38.3

 
(38.3
)
(a)
31.7

Income Tax Expense
84.1

 
0.2

 
—

 
84.3

Equity Earnings in State Transcos
—

 
164.2

 
(164.2
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
164.2

 
$
164.4

 
$
(164.2
)
(b)
$
164.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
Revenues from:
 
 
 
 
 
 
 
External Customers
$
56.1

 
$
—

 
$
—

 
$
56.1

Sales to AEP Affiliates
176.6

 
—

 
—

 
176.6

Total Revenues
$
232.7

 
$
—

 
$
—

 
$
232.7

 
 
 
 
 
 
 
 
Interest Income - Affiliated
$
—

 
$
27.8

 
$
(27.7
)
(a)
$
0.1

Interest Expense
21.3

 
27.7

 
(27.7
)
(a)
21.3

Income Tax Expense
47.5

 
—

 
—

 
47.5

Equity Earnings in State Transcos
—

 
100.6

 
(100.6
)
(b)
—

 
 
 
 
 
 
 
 
Net Income (Loss)
$
100.6

 
$
100.6

 
$
(100.6
)
(b)
$
100.6

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
June 30, 2017
 
 
 
 
 
 
 
Total Transmission Property
$
5,690.3

 
$
—

 
$
—

 
$
5,690.3

Accumulated Depreciation and Amortization
133.1

 
—

 
—

 
133.1

Total Transmission Property – Net
$
5,557.2

 
$
—

 
$
—

 
$
5,557.2

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,924.5

 
$
4,282.5

 
$
(4,263.4
)
(d)
$
5,943.6

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,931.4

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,931.4

 
State Transcos
 
AEPTCo Parent
 
Reconciling Adjustments
 
AEPTCo
Consolidated
 
(in millions)
December 31, 2016
 
 
 
 
 
 
 
Total Transmission Property
$
5,054.2

 
$
—

 
$
—

 
$
5,054.2

Accumulated Depreciation and Amortization
99.6

 
—

 
—

 
99.6

Total Transmission Property – Net
$
4,954.6

 
$
—

 
$
—

 
$
4,954.6

 
 
 
 
 
 
 
 
Notes Receivable - Affiliated
$
—

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
—

 
 
 
 
 
 
 
 
Total Assets
$
5,337.5

 
$
3,947.8

 
$
(3,935.5
)
(d)
$
5,349.8

 
 
 
 
 
 
 
 
Total Long-term Debt
$
1,932.0

 
$
1,950.0

 
$
(1,950.0
)
(c)
$
1,932.0


(a)
Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)
Elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(c)
Elimination of intercompany debt.
(d)
Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos.