Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment

December 31, 2019	AEP			AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Regulated Property, Plant and Equipment
Generation	$	21,323.5	(a)	$	—	$	—	$	6,563.7	$	5,099.7	$	—	$	1,574.6	$	4,691.4	(a)
Transmission	24,763.4			4,466.5		8,137.9		3,584.1		1,641.8		2,686.3		948.5		2,056.5
Distribution	22,440.8			4,215.2		—		4,201.7		2,437.6		5,323.5		2,684.8		2,270.7
Other	4,369.6			803.4		268.2		542.0		590.9		754.7		337.2		520.6
CWIP	4,261.2		(a)	763.9		1,485.7		593.4		382.3		394.4		133.4		210.1		(a)
Less: Accumulated Depreciation	18,778.1			1,465.0		402.3		4,425.6		3,281.4		2,261.7		1,579.9		2,766.2
Total Regulated Property, Plant and Equipment - Net	58,380.4			8,784.0		9,489.5		11,059.3		6,870.9		6,897.2		4,098.6		6,983.1
Nonregulated Property, Plant and Equipment - Net	1,757.7			61.1		1.4		22.6		28.8		9.8		4.7		112.1
Total Property, Plant and Equipment - Net	$	60,138.1		$	8,845.1	$	9,490.9	$	11,081.9	$	6,899.7	$	6,907.0	$	4,103.3	$	7,095.2

December 31, 2018	AEP			AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Regulated Property, Plant and Equipment
Generation	$	20,989.1	(a)	$	—	$	—	$	6,509.6	$	4,887.2	$	—	$	1,577.0	$	4,672.6	(a)
Transmission	21,500.5			3,683.6		6,515.8		3,317.7		1,576.8		2,544.3		892.3		1,866.9
Distribution	21,192.8			4,043.2		—		3,989.4		2,249.7		4,942.3		2,572.8		2,178.6
Other	3,770.8			724.6		172.6		457.4		543.1		563.7		298.1		485.2
CWIP	4,352.6		(a)	836.0		1,578.3		490.2		465.3		432.1		94.0		194.7		(a)
Less: Accumulated Depreciation	17,743.1			1,431.2		271.9		4,118.9		3,139.4		2,217.7		1,472.1		2,633.5
Total Regulated Property, Plant and Equipment - Net	54,062.7			7,856.2		7,994.8		10,645.4		6,582.7		6,264.7		3,962.1		6,764.5
Nonregulated Property, Plant and Equipment - Net	1,036.4			135.6		1.4		22.9		28.5		10.2		4.6		107.3
Total Property, Plant and Equipment - Net	$	55,099.1		$	7,991.8	$	7,996.2	$	10,668.3	$	6,611.2	$	6,274.9	$	3,966.7	$	6,871.8

(a) AEP and SWEPCo’s regulated generation and regulated CWIP include amounts related to SWEPCo’s Arkansas jurisdictional share of the Turk Plant.

Depreciation, Depletion and Amortization - Regulated

AEP
	2019						2018						2017
Functional Class of Property	Annual Composite Depreciation Rate Ranges			Depreciable Life Ranges			Annual Composite Depreciation Rate Ranges			Depreciable Life Ranges			Annual Composite Depreciation Rate Ranges			Depreciable Life Ranges
				(in years)						(in years)						(in years)
Generation	2.5%	-	5.5%	20	-	132	2.4%	-	4.0%	20	-	132	2.3%	-	3.7%	20	-	132
Transmission	1.8%	-	2.6%	15	-	81	1.6%	-	2.7%	15	-	81	1.6%	-	2.7%	15	-	100
Distribution	2.7%	-	3.7%	7	-	78	2.7%	-	3.6%	7	-	78	2.7%	-	3.7%	5	-	156
Other	2.6%	-	9.5%	5	-	75	2.3%	-	9.8%	5	-	75	2.3%	-	9.2%	5	-	84

AEP Texas
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Transmission	1.8%	45	-	81	1.7%	45	-	81	1.7%	45	-	81
Distribution	3.5%	7	-	70	3.6%	7	-	70	3.6%	7	-	70
Other	6.3%	5	-	50	6.0%	5	-	50	8.7%	5	-	50

AEPTCo
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Transmission	2.0%	24	-	75	1.9%	20	-	75	1.7%	20	-	100
Other	5.8%	5	-	64	5.6%	5	-	64	6.7%	5	-	84

APCo
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Generation	3.2%	35	-	118	3.1%	35	-	112	3.1%	35	-	112
Transmission	1.8%	15	-	71	1.6%	15	-	68	1.6%	15	-	68
Distribution	3.7%	12	-	57	3.6%	10	-	57	3.7%	10	-	57
Other	7.2%	5	-	55	7.4%	5	-	55	6.5%	5	-	55

I&M
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Generation	4.0%	20	-	132	3.4%	20	-	132	2.4%	20	-	132
Transmission	1.9%	50	-	73	1.8%	50	-	73	1.7%	50	-	75
Distribution	3.4%	9	-	75	3.1%	9	-	75	2.7%	10	-	70
Other	9.4%	5	-	50	8.9%	5	-	50	8.4%	5	-	45

OPCo
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Transmission	2.3%	39	-	60	2.3%	39	-	60	2.3%	39	-	60
Distribution	3.1%	14	-	65	3.0%	14	-	65	2.8%	5	-	57
Other	4.9%	5	-	50	6.3%	5	-	50	6.2%	5	-	50

PSO
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Generation	2.9%	35	-	75	2.9%	35	-	75	2.4%	35	-	85
Transmission	2.4%	45	-	75	2.3%	45	-	75	2.2%	45	-	100
Distribution	2.9%	15	-	78	2.9%	15	-	78	2.7%	27	-	156
Other	5.6%	5	-	64	6.3%	5	-	64	7.4%	5	-	84

SWEPCo
	2019				2018				2017
Functional Class of Property	Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges			Annual Composite Depreciation Rate	Depreciable Life Ranges
		(in years)				(in years)				(in years)
Generation	2.5%	40	-	70	2.4%	40	-	70	2.3%	40	-	70
Transmission	2.4%	50	-	73	2.2%	50	-	73	2.3%	50	-	73
Distribution	2.7%	25	-	70	2.7%	25	-	70	2.7%	25	-	70
Other	7.6%	5	-	55	8.0%	5	-	55	7.2%	5	-	55

Depreciation, Depletion and Amortization - Unregulated

	2019							2018							2017
Functional Class of Property	Annual Composite Depreciation Rate Ranges			Depreciable Life Ranges				Annual Composite Depreciation Rate Ranges			Depreciable Life Ranges				Annual Composite Depreciation Rate Ranges			Depreciable Life Ranges
				(in years)							(in years)							(in years)
Generation	3.2%	-	21.2%	15	-	59		3.4%	-	22.3%	15	-	59		2.4%	-	5.1%	15	-	66
Transmission	2.5%			30	-	40		2.4%			40				0.2%			40
Distribution	2.3%			40				2.3%			40				2.3%			40
Other	17.6%			5	-	50	(a)	16.3%			5	-	50	(a)	12.1%			5	-	50	(a)

(a)

SWEPCo’s nonregulated property, plant and equipment is depreciated using the straight-line method over a range of 3 to 20 years.

Asset Retirement Obligation (ARO)

Company	ARO as of December 31, 2018		Accretion Expense		Liabilities Incurred		Liabilities Settled			Revisions in Cash Flow Estimates (a)		ARO as of December 31, 2019
	(in millions)
AEP (b)(c)(d)(e)	$	2,355.5	$	102.5	$	12.0	$	(118.1	)	$	67.0	$	2,418.9
AEP Texas (b)(e)	27.9		1.3		—		(0.2		)	0.1		29.1
APCo (b)(e)	116.1		5.9		—		(17.6		)	6.7		111.1
I&M (b)(c)(e)	1,681.3		67.4		—		(0.2		)	0.1		1,748.6
OPCo (e)	1.8		0.1		—		(0.3		)	0.2		1.8
PSO (b)(e)	46.9		3.1		—		(0.4		)	2.6		52.2
SWEPCo (b)(d)(e)	206.8		10.3		—		(11.8		)	6.9		212.2

Company	ARO as of December 31, 2017		Accretion Expense		Liabilities Incurred		Liabilities Settled			Revisions in Cash Flow Estimates (a)				ARO as of December 31, 2018
	(in millions)
AEP (b)(c)(d)(e)	$	2,005.7	$	93.7	$	0.8	$	(87.0	)	$	342.3		(f)	$	2,355.5
AEP Texas (b)(e)	26.7		1.2		—		(0.1		)	0.1				27.9
APCo (b)(e)	125.0		6.6		—		(17.3		)	1.8				116.1
I&M (b)(c)(e)	1,321.8		58.7		—		(0.2		)	301.0			(f)	1,681.3
OPCo (e)	1.7		0.1		—		—			—				1.8
PSO (b)(e)	54.0		3.2		—		(0.4		)	(9.9		)		46.9
SWEPCo (b)(d)(e)	169.2		9.1		0.2		(11.7		)	40.0				206.8

(a) Primarily related to ash ponds, landfills and mine reclamation, generally due to changes in estimated closure area, volumes and/or unit costs.

(b) Includes ARO related to ash disposal facilities.

(c) Includes ARO related to nuclear decommissioning costs for the Cook Plant of $1.73 billion and $1.66 billion as of December 31, 2019 and 2018, respectively.

(d) Includes ARO related to Sabine and DHLC.

(e) Includes ARO related to asbestos removal.

(f) Revision for Cook Plant related to a new third-party study, which impacted the ARO liability for changes of estimated cash flows and application of a new discount rate.

Allowance For Equity Funds Used During Construction

	Years Ended December 31,
Company	2019		2018		2017
	(in millions)
AEP	$	168.4	$	132.5	$	93.7
AEP Texas	15.2		20.0		6.8
AEPTCo	84.3		70.6		49.0
APCo	16.6		13.2		9.2
I&M	19.4		11.9		11.1
OPCo	18.2		9.8		6.4
PSO	2.7		0.4		0.5
SWEPCo	6.8		6.0		2.4

Allowance For Borrowed Funds Used During Construction

	Years Ended December 31,
Company	2019		2018		2017
	(in millions)
AEP	$	88.7	$	73.6	$	48.6
AEP Texas	20.0		18.4		6.8
AEPTCo	32.2		26.1		20.2
APCo	9.3		8.4		5.3
I&M	8.9		7.4		6.7
OPCo	6.7		5.8		3.8
PSO	1.9		0.9		1.1
SWEPCo	4.0		4.8		2.1

Jointly-owned Electric Facilities

				Registrant’s Share as of December 31, 2019
	Fuel Type	Percent of Ownership		Utility Plant in Service		Construction Work in Progress		Accumulated Depreciation
				(in millions)
AEP
Conesville Generating Station, Unit 4 (a)(h)	Coal	83.5	%	$	—	$	—	$	—
Dolet Hills Power Station, Unit 1 (f)	Lignite	40.2	%	337.3		6.2		216.5
Flint Creek Generating Station, Unit 1 (g)	Coal	50.0	%	374.3		3.4		101.1
Pirkey Generating Station, Unit 1 (g)	Lignite	85.9	%	607.8		7.7		416.8
Oklaunion Power Station (e)	Coal	70.3	%	106.6		0.1		91.7
Turk Generating Plant (g)	Coal	73.3	%	1,593.3		1.7		225.8
Total				$	3,019.3	$	19.1	$	1,051.9
AEP Texas
Oklaunion Power Station (e)	Coal	54.7	%	$	351.7	$	—	$	291.9
I&M
Rockport Generating Plant (b)(c)(d)	Coal	50.0	%	$	1,114.2	$	105.5	$	586.2
PSO
Oklaunion Power Station (e)	Coal	15.6	%	$	106.6	$	0.1	$	91.7
SWEPCo
Dolet Hills Power Station, Unit 1 (f)	Lignite	40.2	%	$	337.3	$	6.2	$	216.5
Flint Creek Generating Station, Unit 1 (g)	Coal	50.0	%	374.3		3.4		101.1
Pirkey Generating Station, Unit 1 (g)	Lignite	85.9	%	607.8		7.7		416.8
Turk Generating Plant (g)	Coal	73.3	%	1,593.3		1.7		225.8
Total				$	2,912.7	$	19.0	$	960.2

				Registrant’s Share as of December 31, 2018
	Fuel Type	Percent of Ownership		Utility Plant in Service		Construction Work in Progress		Accumulated Depreciation
				(in millions)
AEP
Conesville Generating Station, Unit 4 (a)(h)	Coal	83.5	%	$	16.4	$	0.2	$	2.4
Dolet Hills Power Station, Unit 1 (f)	Lignite	40.2	%	336.2		5.1		209.6
Flint Creek Generating Station, Unit 1 (g)	Coal	50.0	%	375.1		1.6		88.9
Pirkey Generating Station, Unit 1 (g)	Lignite	85.9	%	591.3		16.6		418.0
Oklaunion Power Station (e)	Coal	70.3	%	106.4		—		67.8
Turk Generating Plant (g)	Coal	73.3	%	1,590.5		1.1		197.5
Total				$	3,015.9	$	24.6	$	984.2
AEP Texas
Oklaunion Power Station (e)	Coal	54.7	%	$	352.1	$	0.2	$	218.6
I&M
Rockport Generating Plant (b)(c)(d)	Coal	50.0	%	$	1,108.7	$	50.2	$	514.1
PSO
Oklaunion Power Station (e)	Coal	15.6	%	$	106.4	$	—	$	67.8
SWEPCo
Dolet Hills Power Station, Unit 1 (f)	Lignite	40.2	%	$	336.2	$	5.1	$	209.6
Flint Creek Generating Station, Unit 1 (g)	Coal	50.0	%	375.1		1.6		88.9
Pirkey Generating Station, Unit 1 (g)	Lignite	85.9	%	591.3		16.6		418.0
Turk Generating Plant (g)	Coal	73.3	%	1,590.5		1.1		197.5
Total				$	2,893.1	$	24.4	$	914.0

(a) Operated by AGR.

(b) Operated by I&M.

(c) Amounts include I&M’s 50% ownership of both Unit 1 and capital additions for Unit 2. Unit 2 is subject to an operating lease with a nonaffiliated company. See the “Rockport Lease” section of Note 13.

(d) AEGCo owns 50% of Unit 1 with I&M and 50% of capital additions for Unit 2.

(e) Operated by PSO, which owns 15.6%. Also jointly-owned (54.7%) by AEP Texas and various nonaffiliated companies.

(f) Operated by CLECO, a nonaffiliated company.

(g) Operated by SWEPCo.

(h)

Conesville Generating Station, Unit 4 was impaired as of December 31, 2019. See the “Impairments” section of Note 7.