Rate Matters (Tables)

3 Months Ended

Mar. 31, 2020

Regulated Generating Unit Expected to be Retired by 2020

Plant	Gross Investment		Accumulated Depreciation		Net Investment		Accelerated Depreciation Regulatory Asset			Materials and Supplies		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
	(dollars in millions)
Oklaunion Power Station	$	106.8	$	92.6	$	14.2	$	33.0	(a)	$	3.3	$	5.2	2020	27 years
Dolet Hills Power Station	341.4		205.0		136.4		9.1		(b)	5.8		23.7		2021	27 years

(a) In October 2018, PSO changed depreciation rates to utilize the 2020 end-of-life and defer depreciation expense to a regulatory asset for the amount in excess of the previously OCC-approved depreciation rates for Oklaunion Power Station.

(b)

In January 2020, SWEPCo changed depreciation rates to utilize the 2026 end-of-life and defer depreciation expense to a regulatory asset for the amount in excess of the previously APSC-approved depreciation rates for Dolet Hills Power Station. In March 2020, SWEPCo changed depreciation rates again to utilize the accelerated 2021 end-of-life.

Regulatory Assets Pending Final Regulatory Approval

	AEP
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs – Unrecovered Plant	$	35.2	$	35.2
Oklaunion Power Station Accelerated Depreciation	33.0		27.4
Kentucky Deferred Purchase Power Expenses	32.9		30.2
Dolet Hills Power Station Accelerated Depreciation	9.1		—
Other Regulatory Assets Pending Final Regulatory Approval	2.1		0.7
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs	25.9		30.1
Asset Retirement Obligation	7.7		7.2
Storm-Related Costs	7.3		7.2
Vegetation Management Program (a)	3.8		29.4
Cook Plant Study Costs (b)	—		7.6
Other Regulatory Assets Pending Final Regulatory Approval	5.0		6.7
Total Regulatory Assets Pending Final Regulatory Approval (c)	$	162.0	$	181.7

(a) In April 2020, $26 million of deferred expenses were approved for recovery. See “2019 Texas Base Rate Case” section below for additional information.

(b) Approved for recovery in the first quarter of 2020 in the Indiana Base Rate Case.

(c) APCo is currently in the process of retiring and replacing its Virginia jurisdictional Automated Meter Reading (AMR) meters with AMI meters. As of March 31, 2020 and December 31, 2019, APCo has approximately $52 million and $51 million, respectively, of Virginia jurisdictional AMR meters recorded in Total Property, Plant and Equipment - Net on its balance sheets. APCo is pursuing full recovery of these assets through its Virginia depreciation rates. See “2017-2019 Virginia Triennial Review” section below for additional information.

	AEP Texas
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Vegetation Management Program (a)	$	3.8	$	29.4
Other Regulatory Assets Pending Final Regulatory Approval	1.5		1.4
Total Regulatory Assets Pending Final Regulatory Approval	$	5.3	$	30.8

(a) In April 2020, $26 million of deferred expenses were approved for recovery. See “2019 Texas Base Rate Case” section below for additional information.

	APCo
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs – Materials and Supplies	$	—	$	0.5
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs	25.9		30.1
Total Regulatory Assets Pending Final Regulatory Approval (a)	$	25.9	$	30.6

(a) APCo is currently in the process of retiring and replacing its Virginia jurisdictional Automated Meter Reading (AMR) meters with AMI meters. As of March 31, 2020 and December 31, 2019, APCo has approximately $52 million and $51 million, respectively, of Virginia jurisdictional AMR meters recorded in Total Property, Plant and Equipment - Net on its balance sheets. APCo is pursuing full recovery of these assets through its Virginia depreciation rates. See “2017-2019 Virginia Triennial Review” section below for additional information.

	I&M
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Cook Plant Study Costs (a)	$	—	$	7.6
Other Regulatory Assets Pending Final Regulatory Approval	—		0.1
Total Regulatory Assets Pending Final Regulatory Approval	$	—	$	7.7

(a) Approved for recovery in the first quarter of 2020 in the Indiana Base Rate Case.

	OPCo
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	0.1	$	0.1
Total Regulatory Assets Pending Final Regulatory Approval	$	0.1	$	0.1

	PSO
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Oklaunion Power Station Accelerated Depreciation	$	33.0	$	27.4
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	7.3		7.2
Total Regulatory Assets Pending Final Regulatory Approval	$	40.3	$	34.6

	SWEPCo
	March 31,		December 31,
	2020		2019
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs – Unrecovered Plant, Louisiana	$	35.2	$	35.2
Dolet Hills Power Station Accelerated Depreciation	9.1		—
Other Regulatory Assets Pending Final Regulatory Approval	2.2		0.2
Regulatory Assets Currently Not Earning a Return
Asset Retirement Obligation - Louisiana	7.7		7.2
Other Regulatory Assets Pending Final Regulatory Approval	1.9		3.7
Total Regulatory Assets Pending Final Regulatory Approval	$	56.1	$	46.3