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Financing Activities (Tables)
9 Months Ended
Sep. 30, 2019
Long-term Debt
Type of Debt
 
September 30, 2019
 
December 31, 2018
 
 
(in millions)
Senior Unsecured Notes
 
$
20,829.2

 
$
18,903.3

Pollution Control Bonds
 
1,516.5

 
1,643.8

Notes Payable
 
189.1

 
204.7

Securitization Bonds
 
1,059.4

 
1,111.4

Spent Nuclear Fuel Obligation (a)
 
278.5

 
273.6

Junior Subordinated Notes (b)
 
786.8

 

Other Long-term Debt
 
1,221.7

 
1,209.9

Total Long-term Debt Outstanding
 
25,881.2

 
23,346.7

Long-term Debt Due Within One Year
 
1,327.7

 
1,698.5

Long-term Debt
 
$
24,553.5

 
$
21,648.2



(a)
Pursuant to the Nuclear Waste Policy Act of 1982, I&M, a nuclear licensee, has an obligation to the United States Department of Energy for SNF disposal.  The obligation includes a one-time fee for nuclear fuel consumed prior to April 7, 1983.  Trust fund assets related to this obligation were $322 million and $317 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Spent Nuclear Fuel and Decommissioning Trusts on the balance sheets.
(b)
See “Equity Units” section below for additional information.

Long-term Debt Issuances
 
 
 
 
Principal
 
Interest
 
 
Company
 
Type of Debt
 
Amount (a)
 
Rate
 
Due Date
Issuances:
 
 
 
(in millions)
 
(%)
 
 
AEP
 
Junior Subordinated Notes (b)
 
$
805.0

 
3.40
 
2024
AEP Texas
 
Securitization Bonds
 
117.6

 
2.06
 
2025
AEP Texas
 
Securitization Bonds
 
117.6

 
2.29
 
2029
AEP Texas
 
Pollution Control Bonds
 
100.6

 
2.60
 
2029
AEP Texas
 
Senior Unsecured Notes
 
300.0

 
4.15
 
2049
AEPTCo
 
Senior Unsecured Notes
 
350.0

 
3.80
 
2049
AEPTCo
 
Senior Unsecured Notes
 
350.0

 
3.15
 
2049
APCo
 
Pollution Control Bonds
 
86.0

 
2.55
 
2024
APCo
 
Senior Unsecured Notes
 
400.0

 
4.50
 
2049
I&M
 
Notes Payable
 
62.8

 
Variable
 
2023
OPCo
 
Senior Unsecured Notes
 
450.0

 
4.00
 
2049
PSO
 
Senior Unsecured Notes
 
100.0

 
3.91
 
2029
PSO
 
Senior Unsecured Notes
 
150.0

 
4.11
 
2034
PSO
 
Senior Unsecured Notes
 
100.0

 
4.50
 
2049
 
 
 
 
 
 
 
 
 
Non-Registrant:
 
 
 
 
 
 
 
 
AEGCo
 
Pollution Control Bonds
 
45.0

 
1.35
 
2022
Transource Energy
 
Other Long-term Debt
 
14.4

 
Variable
 
2020
Total Issuances
 
 
 
$
3,549.0

 

 


(a)
Amounts indicated on the statements of cash flows are net of issuance costs and premium or discount and will not tie to the issuance amounts.
(b)
See “Equity Units” section below for additional information.
Retirements and Principal Payments
 
 
 
 
Principal
 
Interest
 
 
Company
 
Type of Debt
 
Amount Paid
 
Rate
 
Due Date
Retirements and Principal Payments:
 
 
 
(in millions)
 
(%)
 
 
AEP Texas
 
Senior Unsecured Notes
 
$
50.0

 
2.61
 
2019
AEP Texas
 
Securitization Bonds
 
28.2

 
1.98
 
2020
AEP Texas
 
Securitization Bonds
 
188.0

 
5.31
 
2020
AEP Texas
 
Pollution Control Bonds
 
100.6

 
6.30
 
2029
APCo
 
Pollution Control Bonds
 
86.0

 
1.90
 
2019
APCo
 
Pollution Control Bonds
 
70.0

 
3.25
 
2019
APCo
 
Securitization Bonds
 
24.4

 
2.01
 
2023
I&M
 
Notes Payable
 
2.7

 
Variable
 
2019
I&M
 
Notes Payable
 
4.3

 
Variable
 
2019
I&M
 
Notes Payable
 
13.7

 
Variable
 
2020
I&M
 
Notes Payable
 
17.9

 
Variable
 
2021
I&M
 
Notes Payable
 
11.3

 
Variable
 
2022
I&M
 
Notes Payable
 
16.0

 
Variable
 
2022
I&M
 
Notes Payable
 
6.4

 
Variable
 
2023
I&M
 
Other Long-term Debt
 
1.3

 
6.00
 
2025
OPCo
 
Securitization Bonds
 
47.9

 
2.05
 
2019
OPCo
 
Other Long-term Debt
 
0.1

 
1.15
 
2028
PSO
 
Senior Unsecured Notes
 
250.0

 
5.15
 
2019
PSO
 
Other Long-term Debt
 
0.4

 
3.00
 
2027
SWEPCo
 
Pollution Control Bonds
 
53.5

 
1.60
 
2019
SWEPCo
 
Other Long-term Debt
 
1.5

 
4.68
 
2028
SWEPCo
 
Notes Payable
 
3.2

 
4.58
 
2032
 
 
 
 
 
 
 
 
 
Non-Registrant:
 
 
 
 
 
 
 
 
AEGCo
 
Pollution Control Bonds
 
45.0

 
Variable
 
2019
AEP Energy
 
Notes Payable
 
0.1

 
5.75
 
2019
Transource Energy
 
Other Long-term Debt
 
1.0

 
Variable
 
2020
Total Retirements and Principal Payments
 
 
 
$
1,023.5

 
 
 
 

Utility Money Pool Participants' Money Pool Activity and Authorized Borrowing Limits
 
 
Maximum
 
 
 
Average
 
 
 
Net Loans to
 
 
 
 
 
Borrowings
 
Maximum
 
Borrowings
 
Average
 
(Borrowings from)
 
Authorized
 
 
 
from the
 
Loans to the
 
from the
 
Loans to the
 
the Utility Money
 
Short-term
 
 
 
Utility
 
Utility
 
Utility
 
Utility
 
Pool as of
 
Borrowing
 
Company
 
Money Pool
 
Money Pool
 
Money Pool
 
Money Pool
 
September 30, 2019
 
Limit
 
 
 
(in millions)
AEP Texas
 
$
390.7

 
$

 
$
261.8

 
$

 
$
(74.8
)
 
$
500.0

 
AEPTCo
 
374.9

 
244.4

 
179.8

 
40.2

 
236.6

 
795.0

(a)
APCo
 
225.4

 
232.2

 
90.4

 
61.8

 
(17.7
)
 
600.0

 
I&M
 
120.4

 
66.0

 
53.1

 
17.2

 
(89.2
)
 
500.0

 
OPCo
 
291.2

 
178.6

 
163.5

 
50.1

 
(17.6
)
 
500.0

 
PSO
 
140.5

 
215.6

 
63.9

 
84.1

 
95.1

 
300.0

 
SWEPCo
 
105.1

 
81.4

 
57.8

 
11.2

 
6.4

 
350.0

 


(a)
Amount represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions.
Nonutility Money Pool Activity
 
 
Maximum Loans
 
Average Loans
 
Loans to the Nonutility
 
 
to the Nonutility
 
to the Nonutility
 
Money Pool as of
Company
 
Money Pool
 
Money Pool
 
September 30, 2019
 
(in millions)
AEP Texas
 
$
8.0

 
$
7.7

 
$
7.7

SWEPCo
 
2.1

 
2.0

 
2.1



Direct Borrowing Activity
Maximum
 
Maximum
 
Average
 
Average
 
Borrowings from
 
Loans to
 
Authorized
 
Borrowings
 
Loans
 
Borrowings
 
Loans
 
AEP as of
 
AEP as of
 
Short-term
 
from AEP
 
to AEP
 
from AEP
 
to AEP
 
September 30, 2019
 
September 30, 2019
 
Borrowing Limit
 
(in millions)
$
1.3

 
$
117.6

 
$
1.3

 
$
63.4

 
$
1.3

 
$
30.8

 
$
75.0

(a)

(a)
Amount represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions.
Maximum and Minimum Interest Rates for Funds Either Borrowed from or Loaned to Utility Money Pool
 
 
Nine Months Ended September 30,
 
 
2019
 
2018
Maximum Interest Rate
 
3.43
%
 
2.52
%
Minimum Interest Rate
 
1.83
%
 
1.81
%

Average Interest Rates for Funds Borrowed from and Loaned to Utility Money Pool
 
 
Average Interest Rate for Funds
 
Average Interest Rate for Funds
 
 
Borrowed from the Utility Money Pool
 
Loaned to the Utility Money Pool
 
 
for Nine Months Ended September 30,
 
for Nine Months Ended September 30,
Company
 
2019
 
2018
 
2019
 
2018
AEP Texas
 
2.71
%
 
2.25
%
 
%
 
2.29
%
AEPTCo
 
2.72
%
 
2.26
%
 
2.57
%
 
2.04
%
APCo
 
2.82
%
 
2.22
%
 
2.73
%
 
2.19
%
I&M
 
2.56
%
 
2.16
%
 
2.73
%
 
2.06
%
OPCo
 
2.80
%
 
2.18
%
 
2.68
%
 
2.47
%
PSO
 
2.85
%
 
2.25
%
 
2.48
%
 
1.86
%
SWEPCo
 
2.74
%
 
2.31
%
 
2.47
%
 
1.87
%

Maximum Minimum Average Interest Rates for Funds Borrowed from Loaned to Nonutility Money Pool
 
 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
 
 
Maximum
 
Minimum
 
Average
 
Maximum
 
Minimum
 
Average
 
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
 
for Funds
 
for Funds
 
for Funds
 
for Funds
 
for Funds
 
for Funds
 
 
Loaned to
 
Loaned to
 
Loaned to
 
Loaned to
 
Loaned to
 
Loaned to
 
 
the Nonutility
 
the Nonutility
 
the Nonutility
 
the Nonutility
 
the Nonutility
 
the Nonutility
Company
 
Money Pool
 
Money Pool
 
Money Pool
 
Money Pool
 
Money Pool
 
Money Pool
AEP Texas
 
3.02
%
 
2.36
%
 
2.70
%
 
2.52
%
 
1.83
%
 
2.26
%
SWEPCo
 
3.02
%
 
2.36
%
 
2.70
%
 
2.52
%
 
1.83
%
 
2.26
%


Maximum Minimum and Average Interest Rates for Funds Borrowed from and Loaned to AEP
 
 
Maximum
 
Minimum
 
Maximum
 
Minimum
 
Average
 
Average
 
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
Interest Rate
 
Interest Rate
Nine Months
 
for Funds
 
for Funds
 
for Funds
 
for Funds
 
for Funds
 
for Funds
Ended
 
Borrowed
 
Borrowed
 
Loaned
 
Loaned
 
Borrowed
 
Loaned
September 30,
 
from AEP
 
from AEP
to AEP
 
to AEP
 
from AEP
 
to AEP
2019
 
3.02
%
 
2.36
%
 
3.02
%
 
2.36
%
 
2.70
%
 
2.70
%
2018
 
2.52
%
 
1.76
%
 
2.52
%
 
1.76
%
 
2.26
%
 
2.27
%

Short Term Debt
 
 
September 30, 2019
 
December 31, 2018
 
 
Outstanding
 
Interest
 
Outstanding
 
Interest
Type of Debt
 
Amount
 
Rate (a)
 
Amount
 
Rate (a)
 
 
(dollars in millions)
Securitized Debt for Receivables (b)
 
$
750.0

 
2.56
%
 
$
750.0

 
2.16
%
Commercial Paper
 
1,760.0

 
2.36
%
 
1,160.0

 
2.96
%
Total Short-term Debt
 
$
2,510.0

 
 

 
$
1,910.0

 
 


(a)
Weighted-average rate.
(b)
Amount of securitized debt for receivables as accounted for under the “Transfers and Servicing” accounting guidance.
Comparative Accounts Receivable Information
 
 
Three Months Ended 
September 30,
 
Nine Months Ended 
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(dollars in millions)
Effective Interest Rates on Securitization of Accounts Receivable
 
2.37
%
 
2.27
%
 
2.56
%
 
2.06
%
Net Uncollectible Accounts Receivable Written-Off
 
$
8.8

 
$
9.6

 
$
19.8

 
$
19.0


Customer Accounts Receivable Managed Portfolio
 
 
September 30, 2019
 
December 31, 2018
 
 
(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts
 
$
923.3

 
$
972.5

Short-term – Securitized Debt of Receivables
 
750.0

 
750.0

Delinquent Securitized Accounts Receivable
 
43.9

 
50.3

Bad Debt Reserves Related to Securitization
 
32.3

 
27.5

Unbilled Receivables Related to Securitization
 
216.2

 
281.4


Accounts Receivable and Accrued Unbilled Revenues
Company
 
September 30, 2019
 
December 31, 2018
 
 
(in millions)
APCo
 
$
95.4

 
$
133.3

I&M
 
156.2

 
152.9

OPCo
 
337.5

 
395.2

PSO
 
149.4

 
109.7

SWEPCo
 
168.6

 
150.3


Fees Paid to AEP Credit for Customer Accounts Receivable Sold
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Company
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
APCo
 
$
1.2

 
$
1.8

 
$
5.8

 
$
5.1

I&M
 
2.4

 
2.5

 
8.4

 
6.8

OPCo
 
6.4

 
7.2

 
22.1

 
18.8

PSO
 
2.0

 
2.3

 
6.2

 
6.0

SWEPCo
 
1.9

 
2.6

 
7.9

 
6.6


Proceeds on Sale of Receivables to AEP Credit
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Company
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
APCo
 
$
303.3

 
$
334.1

 
$
978.5

 
$
1,079.2

I&M
 
485.3

 
498.4

 
1,378.9

 
1,401.7

OPCo
 
602.6

 
695.2

 
1,746.1

 
2,046.9

PSO
 
451.5

 
454.9

 
1,118.7

 
1,171.2

SWEPCo
 
480.7

 
512.6

 
1,247.0

 
1,364.6