Regulatory Assets Pending Final Regulatory Approval



	AEP
	September 30,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant (a)	$	209.1	$	159.9
Storm-Related Costs	97.4		25.1
Plant Retirement Costs - Materials and Supplies	9.1		9.1
Ohio Capacity Deferral	—		96.7
Other Regulatory Assets Pending Final Regulatory Approval	1.1		1.3
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	42.6		25.9
Plant Retirement Costs - Asset Retirement Obligation Costs	37.2		29.6
Cook Plant Uprate Project	36.3		36.3
Environmental Control Projects	24.3		24.1
Cook Plant Turbine	15.1		12.8
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	13.0		8.1
Other Regulatory Assets Pending Final Regulatory Approval	25.6		21.2
Total Regulatory Assets Pending Final Regulatory Approval (b)	$	510.8	$	450.1


(a)	In March 2017, $41 million was reclassified from accumulated depreciation to regulatory assets related to Northeastern Plant, Unit 3. As of September 30, 2017, the unrecovered plant balance related to Northeastern Plant, Unit 3 was $52 million.

(b)

In 2015, APCo recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. Recovery of the remaining Virginia net book value for the retired plants will be considered in APCo’s next depreciation study. The Virginia SCC staff has requested that the company prepare a depreciation study as of December 31, 2017 and submit that study to the Virginia SCC staff in 2018.

Regulatory Assets Pending Final Regulatory Approval



	APCo
	September 30,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Materials and Supplies	$	9.1	$	9.1
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs	37.2		29.6
Other Regulatory Assets Pending Final Regulatory Approval	0.6		0.6
Total Regulatory Assets Pending Final Regulatory Approval (a)	$	46.9	$	39.3

(a)

In 2015, APCo recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. Recovery of the remaining Virginia net book value for the retired plants will be considered in APCo’s next depreciation study. The Virginia SCC staff has requested that the company prepare a depreciation study as of December 31, 2017 and submit that study to the Virginia SCC staff in 2018.

Regulatory Assets Pending Final Regulatory Approval



	I&M
	September 30,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Not Earning a Return
Cook Plant Uprate Project	$	36.3	$	36.3
Cook Plant Turbine	15.1		12.8
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	13.0		8.1
Rockport Dry Sorbent Injection System - Indiana	9.4		6.6
Other Regulatory Assets Pending Final Regulatory Approval	1.5		0.9
Total Regulatory Assets Pending Final Regulatory Approval	$	75.3	$	64.7

Regulatory Assets Pending Final Regulatory Approval



	OPCo
	September 30,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Capacity Deferral	$	—	$	96.7
Regulatory Assets Currently Not Earning a Return
Smart Grid Costs	—		4.1
Total Regulatory Assets Pending Final Regulatory Approval	$	—	$	100.8

Regulatory Assets Pending Final Regulatory Approval



	PSO
	September 30,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant (a)	$	133.7	$	84.5
Other Regulatory Assets Pending Final Regulatory Approval	0.5		0.5
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	36.7		20.0
Environmental Control Projects	24.3		13.1
Other Regulatory Assets Pending Final Regulatory Approval	0.4		—
Total Regulatory Assets Pending Final Regulatory Approval	$	195.6	$	118.1


(a)	In March 2017, $41 million was reclassified from accumulated depreciation to regulatory assets related to Northeastern Plant, Unit 3. As of September 30, 2017, the unrecovered plant balance related to Northeastern Plant, Unit 3 was $52 million.

Regulatory Assets Pending Final Regulatory Approval



	SWEPCo
	September 30,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	$	75.4	$	75.4
Other Regulatory Assets Pending Final Regulatory Approval	0.5		0.8
Regulatory Assets Currently Not Earning a Return
Rate Case Expense - Texas	4.1		1.0
Asset Retirement Obligation - Arkansas, Louisiana	3.6		2.7
Shipe Road Transmission Project - FERC	3.3		3.1
Environmental Control Projects	—		11.0
Other Regulatory Assets Pending Final Regulatory Approval	2.4		1.9
Total Regulatory Assets Pending Final Regulatory Approval	$	89.3	$	95.9