Fair Value Measurements (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
Book Values and Fair Values of Long-term Debt |
| | | | | | | | | | | | | | | | | | | | December 31, | | | 2019 | | 2018 | Company | | Book Value | | Fair Value | | Book Value | | Fair Value | | | (in millions) | AEP (a) | | $ | 26,725.5 |
| | $ | 30,172.0 |
| | $ | 23,346.7 |
| | $ | 24,093.9 |
| AEP Texas | | 4,558.4 |
| | 4,981.5 |
| | 3,881.3 |
| | 3,964.6 |
| AEPTCo | | 3,427.3 |
| | 3,868.0 |
| | 2,823.0 |
| | 2,782.4 |
| APCo | | 4,363.8 |
| | 5,253.1 |
| | 4,062.6 |
| | 4,473.3 |
| I&M | | 3,050.2 |
| | 3,453.8 |
| | 3,035.4 |
| | 3,070.2 |
| OPCo | | 2,082.0 |
| | 2,554.3 |
| | 1,716.6 |
| | 1,919.7 |
| PSO | | 1,386.2 |
| | 1,603.3 |
| | 1,287.0 |
| | 1,361.9 |
| SWEPCo | | 2,655.6 |
| | 2,927.9 |
| | 2,713.4 |
| | 2,670.2 |
|
| | (a) | The fair value amount includes debt related to AEP’s Equity Units issued in March 2019 and had a fair value of $871 million as of December 31, 2019. See “Equity Units” section of Note 14 for additional information. |
|
Other Temporary Investments |
| | | | | | | | | | | | | | | | | | | | December 31, 2019 | | | | | Gross | | Gross | | | | | | | Unrealized | | Unrealized | | Fair | Other Temporary Investments | | Cost | | Gains | | Losses | | Value | | | (in millions) | Restricted Cash and Other Cash Deposits (a) | | $ | 214.7 |
| | $ | — |
| | $ | — |
| | $ | 214.7 |
| Fixed Income Securities – Mutual Funds (b) | | 123.2 |
| | 0.1 |
| | — |
| | 123.3 |
| Equity Securities – Mutual Funds | | 29.2 |
| | 21.3 |
| | — |
| | 50.5 |
| Total Other Temporary Investments | | $ | 367.1 |
| | $ | 21.4 |
| | $ | — |
| | $ | 388.5 |
|
| | | | | | | | | | | | | | | | | | | | December 31, 2018 | | | | | Gross | | Gross | | | | | | | Unrealized | | Unrealized | | Fair | Other Temporary Investments | | Cost | | Gains | | Losses | | Value | | | (in millions) | Restricted Cash and Other Cash Deposits (a) | | $ | 230.6 |
| | $ | — |
| | $ | — |
| | $ | 230.6 |
| Fixed Income Securities – Mutual Funds (b) | | 106.6 |
| | — |
| | (2.3 | ) | | 104.3 |
| Equity Securities – Mutual Funds | | 17.8 |
| | 16.4 |
| | — |
| | 34.2 |
| Total Other Temporary Investments | | $ | 355.0 |
| | $ | 16.4 |
| | $ | (2.3 | ) | | $ | 369.1 |
|
| | (a) | Primarily represents amounts held for the repayment of debt. |
(b) Primarily short and intermediate maturities which may be sold and do not contain maturity dates.
|
Debt and Equity Securities Within Other Temporary Investments |
| | | | | | | | | | | | | | | | Years Ended December 31, | | | 2019 | | 2018 | | 2017 | | | (in millions) | Proceeds from Investment Sales | | $ | 21.2 |
| | $ | — |
| | $ | — |
| Purchases of Investments | | 45.0 |
| | 3.1 |
| | 14.2 |
| Gross Realized Gains on Investment Sales | | — |
| | — |
| | — |
| Gross Realized Losses on Investment Sales | | 0.4 |
| | — |
| | — |
|
|
Nuclear Trust Fund Investments |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | 2019 | | 2018 | | | | Gross | | Other-Than- | | | | Gross | | Other-Than- | | Fair | | Unrealized | | Temporary | | Fair | | Unrealized | | Temporary | | Value | | Gains | | Impairments | | Value | | Gains | | Impairments | | (in millions) | Cash and Cash Equivalents | $ | 15.3 |
| | $ | — |
| | $ | — |
| | $ | 22.5 |
| | $ | — |
| | $ | — |
| Fixed Income Securities: | | | | | | | | | | | | United States Government | 1,112.5 |
| | 55.5 |
| | (6.1 | ) | | 996.1 |
| | 26.7 |
| | (7.1 | ) | Corporate Debt | 72.4 |
| | 5.3 |
| | (1.6 | ) | | 52.4 |
| | 1.1 |
| | (1.9 | ) | State and Local Government | 7.6 |
| | 0.7 |
| | (0.2 | ) | | 8.6 |
| | 0.6 |
| | (0.2 | ) | Subtotal Fixed Income Securities | 1,192.5 |
| | 61.5 |
| | (7.9 | ) | | 1,057.1 |
| | 28.4 |
| | (9.2 | ) | Equity Securities - Domestic (a) | 1,767.9 |
| | 1,144.4 |
| | — |
| | 1,395.3 |
| | 766.3 |
| | — |
| Spent Nuclear Fuel and Decommissioning Trusts | $ | 2,975.7 |
| | $ | 1,205.9 |
| | $ | (7.9 | ) | | $ | 2,474.9 |
| | $ | 794.7 |
| | $ | (9.2 | ) |
(a) Amount reported as Gross Unrealized Gains includes unrealized gains of $1.1 billion and $784 million and unrealized losses of $5 million and $18 million as of December 31, 2019 and 2018, respectively. AEP adopted ASU 2016-01 during the first quarter of 2018 by means of a modified retrospective approach. Due to the adoption of the ASU, Other-Than-Temporary Impairments are no longer applicable to Equity Securities with readily determinable fair values.
|
Securities Activity Within the Decommissioning and SNF Trusts |
| | | | | | | | | | | | | | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Proceeds from Investment Sales | $ | 1,473.0 |
| | $ | 2,010.0 |
| | $ | 2,256.3 |
| Purchases of Investments | 1,531.0 |
| | 2,064.7 |
| | 2,300.5 |
| Gross Realized Gains on Investment Sales | 76.5 |
| | 47.5 |
| | 200.7 |
| Gross Realized Losses on Investment Sales | 24.3 |
| | 32.8 |
| | 146.0 |
|
|
Contractual Maturities, Fair Value of Debt Securities |
| | | | | | Fair Value of Fixed | | Income Securities | | (in millions) | Within 1 year | $ | 371.0 |
| After 1 year through 5 years | 386.2 |
| After 5 years through 10 years | 217.3 |
| After 10 years | 218.0 |
| Total | $ | 1,192.5 |
|
|
Fair Value, Assets and Liabilities Measured on Recurring Basis |
AEP | | | | | | | | | | | | | | | | | | | | | | Assets and Liabilities Measured at Fair Value on a Recurring Basis | December 31, 2019 | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Other Temporary Investments | | | | | | | | | | | Restricted Cash and Other Cash Deposits (a) | | $ | 197.6 |
| | $ | — |
| | $ | — |
| | $ | 17.1 |
| | $ | 214.7 |
| Fixed Income Securities – Mutual Funds | | 123.3 |
| | — |
| | — |
| | — |
| | 123.3 |
| Equity Securities – Mutual Funds (b) | | 50.5 |
| | — |
| | — |
| | — |
| | 50.5 |
| Total Other Temporary Investments | | 371.4 |
| | — |
| | — |
| | 17.1 |
| | 388.5 |
| | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (d) | | 4.0 |
| | 440.1 |
| | 369.2 |
| | (404.5 | ) | | 408.8 |
| Cash Flow Hedges: | | | | | | | | | | | Commodity Hedges (c) | | — |
| | 15.0 |
| | 3.2 |
| | (6.7 | ) | | 11.5 |
| Interest Rate Hedges | | — |
| | 4.6 |
| | — |
| | — |
| | 4.6 |
| Fair Value Hedges | | — |
| | 14.5 |
| | — |
| | — |
| | 14.5 |
| Total Risk Management Assets | | 4.0 |
| | 474.2 |
| | 372.4 |
| | (411.2 | ) | | 439.4 |
| | | | | | | | | | | | Spent Nuclear Fuel and Decommissioning Trusts | |
|
| |
|
| |
|
| |
|
| |
|
| Cash and Cash Equivalents (e) | | 6.7 |
| | — |
| | — |
| | 8.6 |
| | 15.3 |
| Fixed Income Securities: | |
|
| |
|
| |
|
| |
|
| |
|
| United States Government | | — |
| | 1,112.5 |
| | — |
| | — |
| | 1,112.5 |
| Corporate Debt | | — |
| | 72.4 |
| | — |
| | — |
| | 72.4 |
| State and Local Government | | — |
| | 7.6 |
| | — |
| | — |
| | 7.6 |
| Subtotal Fixed Income Securities | | — |
| | 1,192.5 |
| | — |
| | — |
| | 1,192.5 |
| Equity Securities – Domestic (b) | | 1,767.9 |
| | — |
| | — |
| | — |
| | 1,767.9 |
| Total Spent Nuclear Fuel and Decommissioning Trusts | | 1,774.6 |
| | 1,192.5 |
| | — |
| | 8.6 |
| | 2,975.7 |
| | |
|
| |
|
| |
|
| |
|
| |
|
| Total Assets | | $ | 2,150.0 |
| | $ | 1,666.7 |
| | $ | 372.4 |
| | $ | (385.5 | ) | | $ | 3,803.6 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | |
|
| |
|
| |
|
| |
|
| |
|
| Risk Management Commodity Contracts (c) (d) | | $ | 3.8 |
| | $ | 450.0 |
| | $ | 224.0 |
| | $ | (438.8 | ) | | $ | 239.0 |
| Cash Flow Hedges: | |
|
| |
|
| |
|
| |
|
| |
|
| Commodity Hedges (c) | | — |
| | 105.3 |
| | 38.5 |
| | (6.7 | ) | | 137.1 |
| Total Risk Management Liabilities | | $ | 3.8 |
| | $ | 555.3 |
| | $ | 262.5 |
| | $ | (445.5 | ) | | $ | 376.1 |
|
AEP | | | | | | | | | | | | | | | | | | | | | | Assets and Liabilities Measured at Fair Value on a Recurring Basis | December 31, 2018 | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Other Temporary Investments | | | | | | | | | | | Restricted Cash and Other Cash Deposits (a) | | $ | 221.5 |
| | $ | — |
| | $ | — |
| | $ | 9.1 |
| | $ | 230.6 |
| Fixed Income Securities – Mutual Funds | | 104.3 |
| | — |
| | — |
| | — |
| | 104.3 |
| Equity Securities – Mutual Funds (b) | | 34.2 |
| | — |
| | — |
| | — |
| | 34.2 |
| Total Other Temporary Investments | | 360.0 |
| | — |
| | — |
| | 9.1 |
| | 369.1 |
| | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (f) | | 3.8 |
| | 326.5 |
| | 340.9 |
| | (288.5 | ) | | 382.7 |
| Cash Flow Hedges: | | | | | | | | | | | Commodity Hedges (c) | | — |
| | 24.1 |
| | 12.7 |
| | (2.7 | ) | | 34.1 |
| Total Risk Management Assets | | 3.8 |
| | 350.6 |
| | 353.6 |
| | (291.2 | ) | | 416.8 |
| | | | | | | | | | | | Spent Nuclear Fuel and Decommissioning Trusts | | | | | | | | | | | Cash and Cash Equivalents (e) | | 12.3 |
| | — |
| | — |
| | 10.2 |
| | 22.5 |
| Fixed Income Securities: | | | | | | | | | | | United States Government | | — |
| | 996.1 |
| | — |
| | — |
| | 996.1 |
| Corporate Debt | | — |
| | 52.4 |
| | — |
| | — |
| | 52.4 |
| State and Local Government | | — |
| | 8.6 |
| | — |
| | — |
| | 8.6 |
| Subtotal Fixed Income Securities | | — |
| | 1,057.1 |
| | — |
| | — |
| | 1,057.1 |
| Equity Securities – Domestic (b) | | 1,395.3 |
| | — |
| | — |
| | — |
| | 1,395.3 |
| Total Spent Nuclear Fuel and Decommissioning Trusts | | 1,407.6 |
| | 1,057.1 |
| | — |
| | 10.2 |
| | 2,474.9 |
| | | | | | | | | | | | Total Assets | | $ | 1,771.4 |
| | $ | 1,407.7 |
| | $ | 353.6 |
| | $ | (271.9 | ) | | $ | 3,260.8 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (f) | | $ | 4.2 |
| | $ | 327.0 |
| | $ | 185.6 |
| | $ | (274.7 | ) | | $ | 242.1 |
| Cash Flow Hedges: | | | | | | | | | | | Commodity Hedges (c) | | — |
| | 24.8 |
| | 36.8 |
| | (2.7 | ) | | 58.9 |
| Fair Value Hedges | | — |
| | 17.4 |
| | — |
| | — |
| | 17.4 |
| Total Risk Management Liabilities | | $ | 4.2 |
| | $ | 369.2 |
| | $ | 222.4 |
| | $ | (277.4 | ) | | $ | 318.4 |
|
AEP Texas Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Restricted Cash for Securitized Funding | | $ | 154.7 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 154.7 |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Restricted Cash for Securitized Funding | | $ | 156.7 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 156.7 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) | | $ | — |
| | $ | 0.7 |
| | $ | — |
| | $ | (0.5 | ) | | $ | 0.2 |
|
APCo Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Restricted Cash for Securitized Funding | | $ | 23.5 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 23.5 |
| | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | — |
| | 84.6 |
| | 40.5 |
| | (85.6 | ) | | 39.5 |
| | | | | | | | | | | | Total Assets | | $ | 23.5 |
| | $ | 84.6 |
| | $ | 40.5 |
| | $ | (85.6 | ) | | $ | 63.0 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 84.0 |
| | $ | 2.8 |
| | $ | (84.9 | ) | | $ | 1.9 |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Restricted Cash for Securitized Funding | | $ | 25.6 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 25.6 |
| | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | 0.1 |
| | 59.1 |
| | 58.3 |
| | (59.4 | ) | | 58.1 |
| | | | | | | | | | | | Total Assets | | $ | 25.7 |
| | $ | 59.1 |
| | $ | 58.3 |
| | $ | (59.4 | ) | | $ | 83.7 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | 0.2 |
| | $ | 58.4 |
| | $ | 0.5 |
| | $ | (58.5 | ) | | $ | 0.6 |
|
I&M
Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 59.5 |
| | $ | 8.0 |
| | $ | (57.6 | ) | | $ | 9.9 |
| | | | | | | | | | | | Spent Nuclear Fuel and Decommissioning Trusts | | | | | | | | | | | Cash and Cash Equivalents (e) | | 6.7 |
| | — |
| | — |
| | 8.6 |
| | 15.3 |
| Fixed Income Securities: | | | | | | | | | | | United States Government | | — |
| | 1,112.5 |
| | — |
| | — |
| | 1,112.5 |
| Corporate Debt | | — |
| | 72.4 |
| | — |
| | — |
| | 72.4 |
| State and Local Government | | — |
| | 7.6 |
| | — |
| | — |
| | 7.6 |
| Subtotal Fixed Income Securities | | — |
| | 1,192.5 |
| | — |
| | — |
| | 1,192.5 |
| Equity Securities - Domestic (b) | | 1,767.9 |
| | — |
| | — |
| | — |
| | 1,767.9 |
| Total Spent Nuclear Fuel and Decommissioning Trusts | | 1,774.6 |
| | 1,192.5 |
| | — |
| | 8.6 |
| | 2,975.7 |
| | | | | | | | | | | | Total Assets | | $ | 1,774.6 |
| | $ | 1,252.0 |
| | $ | 8.0 |
| | $ | (49.0 | ) | | $ | 2,985.6 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 53.4 |
| | $ | 2.2 |
| | $ | (55.1 | ) | | $ | 0.5 |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 42.1 |
| | $ | 10.3 |
| | $ | (43.2 | ) | | $ | 9.2 |
| | | | | | | | | | | | Spent Nuclear Fuel and Decommissioning Trusts | | | | | | | | | | | Cash and Cash Equivalents (e) | | 12.3 |
| | — |
| | — |
| | 10.2 |
| | 22.5 |
| Fixed Income Securities: | | | | | | | | | | | United States Government | | — |
| | 996.1 |
| | — |
| | — |
| | 996.1 |
| Corporate Debt | | — |
| | 52.4 |
| | — |
| | — |
| | 52.4 |
| State and Local Government | | — |
| | 8.6 |
| | — |
| | — |
| | 8.6 |
| Subtotal Fixed Income Securities | | — |
| | 1,057.1 |
| | — |
| | — |
| | 1,057.1 |
| Equity Securities - Domestic (b) | | 1,395.3 |
| | — |
| | — |
| | — |
| | 1,395.3 |
| Total Spent Nuclear Fuel and Decommissioning Trusts | | 1,407.6 |
| | 1,057.1 |
| | — |
| | 10.2 |
| | 2,474.9 |
| | | | | | | | | | | | Total Assets | | $ | 1,407.6 |
| | $ | 1,099.2 |
| | $ | 10.3 |
| | $ | (33.0 | ) | | $ | 2,484.1 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | 0.1 |
| | $ | 41.2 |
| | $ | 1.4 |
| | $ | (42.3 | ) | | $ | 0.4 |
|
OPCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Liabilities: | | (in millions) | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 103.6 |
| | $ | — |
| | $ | 103.6 |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Restricted Cash for Securitized Funding | | $ | 27.6 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 27.6 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 0.8 |
| | $ | 99.4 |
| | $ | (0.6 | ) | | $ | 99.6 |
|
PSO
Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 16.3 |
| | $ | (0.5 | ) | | $ | 15.8 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 0.5 |
| | $ | (0.5 | ) | | $ | — |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 10.8 |
| | $ | (0.4 | ) | | $ | 10.4 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 0.3 |
| | $ | 1.3 |
| | $ | (0.6 | ) | | $ | 1.0 |
|
SWEPCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 6.5 |
| | $ | (0.1 | ) | | $ | 6.4 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 5.1 |
| | $ | (0.1 | ) | | $ | 5.0 |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Other | | Total | Assets: | | (in millions) | | | | | | | | | | | | Risk Management Assets | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | — |
| | $ | 5.6 |
| | $ | (0.8 | ) | | $ | 4.8 |
| | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | Risk Management Liabilities | | | | | | | | | | | Risk Management Commodity Contracts (c) (g) | | $ | — |
| | $ | 0.4 |
| | $ | 3.3 |
| | $ | (1.1 | ) | | $ | 2.6 |
|
| | (a) | Amounts in “Other” column primarily represent cash deposits in bank accounts with financial institutions or third-parties. Level 1 and Level 2 amounts primarily represent investments in money market funds. |
| | (b) | Amounts represent publicly traded equity securities and equity-based mutual funds. |
| | (c) | Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.” |
| | (d) | The December 31, 2019 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 2 matures $(7) million in 2020 and $(3) million in periods 2021-2023; Level 3 matures $96 million in 2020, $36 million in periods 2021-2023, $25 million in periods 2024-2025 and $(12) million in periods 2026-2032. Risk management commodity contracts are substantially comprised of power contracts. |
| | (e) | Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds. |
| | (f) | The December 31, 2018 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 2 matures $(4) million in 2019, $1 million in periods 2020-2022, $1 million in periods 2023-2024 and $1 million in periods 2025-2032; Level 3 matures $108 million in 2019, $37 million in periods 2020-2022, $23 million in periods 2023-2024 and $(12) million in periods 2025-2032. Risk management commodity contracts are substantially comprised of power contracts. |
(g) Substantially comprised of power contracts for the Registrant Subsidiaries.
|
Changes in Fair Value of Net Trading Derivatives Classified as Level 3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2019 | | AEP | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Balance as of December 31, 2018 | | $ | 131.2 |
| | $ | 57.8 |
| | $ | 8.9 |
| | $ | (99.4 | ) | | $ | 9.5 |
| | $ | 2.3 |
| Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | | 15.8 |
| | (13.9 | ) | | 4.7 |
| | (0.9 | ) | | 13.5 |
| | 6.0 |
| Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | | (0.1 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c) | | (15.1 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| Settlements | | (117.6 | ) | | (42.5 | ) | | (13.0 | ) | | 6.6 |
| | (23.0 | ) | | (9.6 | ) | Transfers into Level 3 (d) (e) | | (0.6 | ) | | (0.5 | ) | | (0.3 | ) | | — |
| | — |
| | — |
| Transfers out of Level 3 (e) | | 35.6 |
| | (0.7 | ) | | (0.4 | ) | | — |
| | — |
| | — |
| Changes in Fair Value Allocated to Regulated Jurisdictions (f) | | 60.7 |
| | 37.5 |
| | 5.9 |
| | (9.9 | ) | | 15.8 |
| | 2.7 |
| Balance as of December 31, 2019 | | $ | 109.9 |
| | $ | 37.7 |
| | $ | 5.8 |
| | $ | (103.6 | ) | | $ | 15.8 |
| | $ | 1.4 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2018 | | AEP | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Balance as of December 31, 2017 | | $ | 40.3 |
| | $ | 24.7 |
| | $ | 7.6 |
| | $ | (132.4 | ) | | $ | 6.2 |
| | $ | 5.9 |
| Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | | 148.9 |
| | 104.1 |
| | 14.2 |
| | 1.8 |
| | 18.1 |
| | (4.8 | ) | Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | | 9.8 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c) | | 15.7 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Settlements | | (214.0 | ) | | (127.9 | ) | | (21.3 | ) | | 4.6 |
| | (24.3 | ) | | (2.1 | ) | Transfers into Level 3 (d) (e) | | 15.8 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Transfers out of Level 3 (e) | | (1.6 | ) | | — |
| | (0.3 | ) | | — |
| | — |
| | — |
| Changes in Fair Value Allocated to Regulated Jurisdictions (f) | | 116.3 |
| | 56.9 |
| | 8.7 |
| | 26.6 |
| | 9.5 |
| | 3.3 |
| Balance as of December 31, 2018 | | $ | 131.2 |
| | $ | 57.8 |
| | $ | 8.9 |
| | $ | (99.4 | ) | | $ | 9.5 |
| | $ | 2.3 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2017 | | AEP | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Balance as of December 31, 2016 | | $ | 2.5 |
| | $ | 1.4 |
| | $ | 2.8 |
| | $ | (119.0 | ) | | $ | 0.7 |
| | $ | 0.7 |
| Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b) | | 37.3 |
| | 17.2 |
| | 4.0 |
| | (1.4 | ) | | 3.1 |
| | 6.0 |
| Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a) | | 33.6 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c) | | (18.8 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| Settlements | | (50.6 | ) | | (18.9 | ) | | (7.1 | ) | | 7.4 |
| | (3.8 | ) | | (6.8 | ) | Transfers into Level 3 (d) (e) | | 16.2 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Transfers out of Level 3 (e) | | (10.1 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| Changes in Fair Value Allocated to Regulated Jurisdictions (f) | | 30.2 |
| | 25.0 |
| | 7.9 |
| | (19.4 | ) | | 6.2 |
| | 6.0 |
| Balance as of December 31, 2017 | | $ | 40.3 |
| | $ | 24.7 |
| | $ | 7.6 |
| | $ | (132.4 | ) | | $ | 6.2 |
| | $ | 5.9 |
|
| | (a) | Included in revenues on the statements of income. |
| | (b) | Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract. |
| | (c) | Included in cash flow hedges on the statements of comprehensive income. |
| | (d) | Represents existing assets or liabilities that were previously categorized as Level 2. |
| | (e) | Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred. |
(f) Relates to the net gains (losses) of those contracts that are not reflected on the statements of income. These net gains (losses) are recorded as regulatory assets/liabilities or accounts payable.
|
Significant Unobservable Inputs for Level 3 |
Significant Unobservable Inputs December 31, 2019 AEP | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | 296.7 |
| | $ | 249.3 |
| | Discounted Cash Flow | | Forward Market Price (a) | | $ | (0.05 | ) | | $ | 177.30 |
| | $ | 31.31 |
| Natural Gas Contracts | — |
| | 4.9 |
| | Discounted Cash Flow | | Forward Market Price (b) | | 1.89 |
| | 2.51 |
| | 2.19 |
| FTRs | 75.7 |
| | 8.3 |
| | Discounted Cash Flow | | Forward Market Price (a) | | (8.52 | ) | | 9.34 |
| | 0.42 |
| Total | $ | 372.4 |
| | $ | 262.5 |
| | | | | | | | | | |
December 31, 2018
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | 257.1 |
| | $ | 212.5 |
| | Discounted Cash Flow | | Forward Market Price (a) | | $ | (0.05 | ) | | $ | 176.57 |
| | $ | 33.07 |
| Natural Gas Contracts | — |
| | 2.5 |
| | Discounted Cash Flow | | Forward Market Price (b) | | 2.18 |
| | 3.54 |
| | 2.47 |
| FTRs | 96.5 |
| | 7.4 |
| | Discounted Cash Flow | | Forward Market Price (a) | | (11.68 | ) | | 17.79 |
| | 1.09 |
| Total | $ | 353.6 |
| | $ | 222.4 |
| | | | | | | | | | |
APCo
Significant Unobservable Inputs December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | 5.7 |
| | $ | 2.6 |
| | Discounted Cash Flow | | Forward Market Price | | $ | 12.70 |
| | $ | 41.20 |
| | $ | 25.92 |
| FTRs | 34.8 |
| | 0.2 |
| | Discounted Cash Flow | | Forward Market Price | | (0.14 | ) | | 7.08 |
| | 1.70 |
| Total | $ | 40.5 |
| | $ | 2.8 |
| | | | | | | | | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | 2.4 |
| | $ | 0.5 |
| | Discounted Cash Flow | | Forward Market Price | | $ | 16.82 |
| | $ | 62.65 |
| | $ | 37.00 |
| FTRs | 55.9 |
| | — |
| | Discounted Cash Flow | | Forward Market Price | | 0.10 |
| | 15.16 |
| | 3.27 |
| Total | $ | 58.3 |
| | $ | 0.5 |
| | | | | | | | | | |
I&M
Significant Unobservable Inputs December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | 3.4 |
| | $ | 1.5 |
| | Discounted Cash Flow | | Forward Market Price | | $ | 12.70 |
| | $ | 41.20 |
| | $ | 25.92 |
| FTRs | 4.6 |
| | 0.7 |
| | Discounted Cash Flow | | Forward Market Price | | (0.75 | ) | | 4.07 |
| | 0.74 |
| Total | $ | 8.0 |
| | $ | 2.2 |
| | | | | | | | | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | 1.4 |
| | $ | 0.9 |
| | Discounted Cash Flow | | Forward Market Price | | $ | 16.82 |
| | $ | 62.65 |
| | $ | 37.00 |
| FTRs | 8.9 |
| | 0.5 |
| | Discounted Cash Flow | | Forward Market Price | | (2.11 | ) | | 6.21 |
| | 1.06 |
| Total | $ | 10.3 |
| | $ | 1.4 |
| | | | | | | | | | |
OPCo
Significant Unobservable Inputs December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | — |
| | $ | 103.6 |
| | Discounted Cash Flow | | Forward Market Price | | $ | 29.23 |
| | $ | 61.43 |
| | $ | 42.46 |
|
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Energy Contracts | $ | — |
| | $ | 99.4 |
| | Discounted Cash Flow | | Forward Market Price | | $ | 26.29 |
| | $ | 62.74 |
| | $ | 42.50 |
|
PSO
Significant Unobservable Inputs December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | FTRs | $ | 16.3 |
| | $ | 0.5 |
| | Discounted Cash Flow | | Forward Market Price | | $ | (8.52 | ) | | $ | 0.85 |
| | $ | (2.31 | ) |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input (a) | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | FTRs | $ | 10.8 |
| | $ | 1.3 |
| | Discounted Cash Flow | | Forward Market Price | | $ | (11.68 | ) | | $ | 10.30 |
| | $ | (1.40 | ) |
SWEPCo
Significant Unobservable Inputs December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Natural Gas Contracts | $ | — |
| | $ | 4.9 |
| | Discounted Cash Flow | | Forward Market Price (b) | | $ | 1.89 |
| | $ | 2.51 |
| | $ | 2.18 |
| FTRs | 6.5 |
| | 0.2 |
| | Discounted Cash Flow | | Forward Market Price (a) | | (8.52 | ) | | 0.85 |
| | (2.31 | ) | Total | $ | 6.5 |
| | $ | 5.1 |
| | | | | | | | | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant | | Input/Range | | Fair Value | | Valuation | | Unobservable | | | | | | Weighted | | Assets | | Liabilities | | Technique | | Input | | Low | | High | | Average (c) | | (in millions) | | | | | | | | | | | Natural Gas Contracts | $ | — |
| | $ | 2.5 |
| | Discounted Cash Flow | | Forward Market Price (b) | | $ | 2.18 |
| | $ | 3.54 |
| | $ | 2.47 |
| FTRs | 5.6 |
| | 0.8 |
| | Discounted Cash Flow | | Forward Market Price (a) | | (11.68 | ) | | 10.30 |
| | (1.40 | ) | Total | $ | 5.6 |
| | $ | 3.3 |
| | | | | | | | | | |
| | (a) | Represents market prices in dollars per MWh. |
| | (b) | Represents market prices in dollars per MMBtu. |
(c) The weighted average is the product of the forward market price of the underlying commodity and volume weighted by term.
|
Sensitivity of Fair Value Measurements |
Uncertainty of Fair Value Measurements | | | | | | | | Significant Unobservable Input | | Position | | Change in Input | | Impact on Fair Value Measurement | Forward Market Price | | Buy | | Increase (Decrease) | | Higher (Lower) | Forward Market Price | | Sell | | Increase (Decrease) | | Lower (Higher) |
|