Financing Activities (Tables)

6 Months Ended

Jun. 30, 2020

Long-term Debt

Type of Debt	June 30, 2020		December 31, 2019
	(in millions)
Senior Unsecured Notes	$	23,530.3	$	21,180.7
Pollution Control Bonds	1,936.2		1,998.8
Notes Payable	186.0		234.3
Securitization Bonds	866.7		1,025.1
Spent Nuclear Fuel Obligation (a)	281.0		279.8
Junior Subordinated Notes (b)	789.7		787.8
Other Long-term Debt	1,185.5		1,219.0
Total Long-term Debt Outstanding	28,775.4		26,725.5
Long-term Debt Due Within One Year	2,137.7		1,598.7
Long-term Debt	$	26,637.7	$	25,126.8

(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 $326 million and $323 million as of June 30, 2020 and December 31, 2019, 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	Senior Unsecured Notes	$	400.0	2.30	2030
AEP	Senior Unsecured Notes	400.0		3.25	2050
AEPTCo	Senior Unsecured Notes	525.0		3.65	2050
APCo	Senior Unsecured Notes	500.0		3.70	2050
OPCo	Senior Unsecured Notes	350.0		2.60	2030
Non-Registrant:
KPCo	Other Long-term Debt	125.0		Variable	2022
Transource Energy	Other Long-term Debt	7.1		Variable	2023
Transource Energy	Senior Unsecured Notes	150.0		2.75	2050
Total Issuances		$	2,457.1

(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.

Retirements and Principal Payments

		Principal		Interest
Company	Type of Debt	Amount Paid		Rate	Due Date
Retirements and Principal Payments:		(in millions)		(%)
AEP Texas	Pollution Control Bonds	$	50.6	4.45	2020
AEP Texas	Securitization Bonds	28.7		1.98	2020
AEP Texas	Securitization Bonds	111.0		5.31	2020
AEP Texas	Securitization Bonds	0.2		2.85	2024
AEP Texas	Securitization Bonds	3.3		2.06	2025
APCo	Securitization Bonds	12.2		2.01	2023
I&M	Notes Payable	1.3		Variable	2020
I&M	Notes Payable	3.1		Variable	2021
I&M	Notes Payable	10.2		Variable	2022
I&M	Notes Payable	7.5		Variable	2022
I&M	Notes Payable	12.5		Variable	2023
I&M	Notes Payable	12.1		Variable	2024
I&M	Other Long-term Debt	0.9		6.00	2025
PSO	Pollution Control Bonds	12.7		4.45	2020
PSO	Other Long-term Debt	0.2		3.00	2027
SWEPCo	Other Long-term Debt	15.0		Variable	2020
SWEPCo	Other Long-term Debt	1.5		4.68	2028
SWEPCo	Notes Payable	1.6		4.58	2032
Non-Registrant:
Transource Energy	Other Long-term Debt	148.6		Variable	2023
Total Retirements and Principal Payments		$	433.2

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		June 30, 2020		Limit
	(in millions)
AEP Texas	$	320.4	$	199.7	$	154.7	$	90.3	$	(320.4)	$	500.0
AEPTCo	358.4		259.7		130.9		85.6		28.0		820.0		(a)
APCo	434.3		174.8		331.3		45.3		82.3		500.0
I&M	194.1		13.4		102.5		13.3		(180.8)		500.0
OPCo	353.9		32.8		145.6		25.2		(143.1)		500.0
PSO	125.4		57.1		66.8		28.4		(106.9)		300.0
SWEPCo	178.9		—		129.3		—		(130.4)		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		June 30, 2020
	(in millions)
AEP Texas		$	7.5	$	7.2	$	7.2
SWEPCo		2.1		2.1		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

June 30, 2020

June 30, 2020

Borrowing Limit

(in millions)

$

1.4

$

190.3

$

1.3

$

124.7

$

1.2

$

90.5

$

50.0

(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

	Six Months Ended June 30,
	2020		2019
Maximum Interest Rate	2.70	%	3.02	%
Minimum Interest Rate	0.33	%	2.68	%

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 Six Months Ended June 30,				for Six Months Ended June 30,
Company	2020		2019		2020		2019
AEP Texas	1.55	%	2.81	%	1.97	%	—	%
AEPTCo	1.94	%	2.78	%	2.06	%	2.83	%
APCo	2.14	%	2.91	%	1.62	%	2.77	%
I&M	1.80	%	2.74	%	1.87	%	2.82	%
OPCo	1.80	%	2.81	%	2.06	%	2.73	%
PSO	1.71	%	2.85	%	1.95	%	2.74	%
SWEPCo	1.87	%	2.77	%	—	%	2.97	%

Maximum Minimum Average Interest Rates for Funds Borrowed from Loaned to Nonutility Money Pool

Six Months Ended June 30, 2020

Six Months Ended June 30, 2019

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

2.70

%

0.33

%

1.87

%

3.02

%

2.68

%

2.81

%

SWEPCo

2.70

%

0.33

%

1.87

%

3.02

%

2.68

%

2.81

%

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
Six Months	for Funds		for Funds		for Funds		for Funds		for Funds		for Funds
Ended	Borrowed		Borrowed		Loaned		Loaned		Borrowed		Loaned
June 30,	from AEP		from AEP		to AEP		to AEP		from AEP		to AEP
2020	2.70	%	0.50	%	2.70	%	0.50	%	1.88	%	1.86	%
2019	3.02	%	2.68	%	3.02	%	2.68	%	2.81	%	2.80	%

Short Term Debt

		June 30, 2020				December 31, 2019
		Outstanding		Interest		Outstanding		Interest
Company	Type of Debt	Amount		Rate (a)		Amount		Rate (a)
		(dollars in millions)
AEP	Securitized Debt for Receivables (b)	$	634.0	1.40	%	$	710.0	2.42	%
AEP	Commercial Paper	1,403.5		0.34	%	2,110.0		2.10	%
AEP	364-Day Term Loan	1,000.0		0.78	%	—		—	%
AEP Texas	COVID-19 Electricity Relief Program Loan (c)	2.0		—	%	—		—	%
SWEPCo	Notes Payable	37.1		2.35	%	18.3		3.29	%
	Total Short-term Debt	$	3,076.6			$	2,838.3

(a)Weighted-average rate.

(b)Amount of securitized debt for receivables as accounted for under the “Transfers and Servicing” accounting guidance.

(c)Principal amount of loan shall not bear interest if paid in full by the maturity date. Unpaid principal after the maturity date will accrue interest of 2% per annum beginning the first day after the maturity date until all outstanding principal is paid.

Comparative Accounts Receivable Information

	Three Months Ended  June 30,						Six Months Ended  June 30,
	2020			2019			2020			2019
	(dollars in millions)
Effective Interest Rates on Securitization of Accounts Receivable	1.06		%	2.60		%	1.40		%	2.66		%
Net Uncollectible Accounts Receivable Written-Off	$	3.4		$	4.6		$	7.6		$	11.0

Customer Accounts Receivable Managed Portfolio

	June 30, 2020		December 31, 2019
	(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts	$	937.6	$	841.8
Short-term – Securitized Debt of Receivables	634.0		710.0
Delinquent Securitized Accounts Receivable	93.6		39.6
Bad Debt Reserves Related to Securitization	38.7		32.1
Unbilled Receivables Related to Securitization	293.2		266.8

Accounts Receivable and Accrued Unbilled Revenues

Company	June 30, 2020		December 31, 2019
	(in millions)
APCo	$	116.3	$	120.9
I&M	172.2		141.8
OPCo	366.7		330.3
PSO	115.6		101.1
SWEPCo	152.8		125.2

Fees Paid to AEP Credit for Customer Accounts Receivable Sold

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2020		2019		2020		2019
	(in millions)
APCo	$	1.3	$	2.4	$	3.0	$	4.6
I&M	2.6		3.2		5.4		6.0
OPCo	5.0		7.9		9.8		15.7
PSO	1.0		2.1		2.3		4.2
SWEPCo	1.9		3.4		4.0		6.0

Proceeds on Sale of Receivables to AEP Credit

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2020		2019		2020		2019
	(in millions)
APCo	$	285.7	$	300.8	$	638.3	$	675.2
I&M	439.9		415.0		911.3		893.6
OPCo	556.7		506.7		1,127.0		1,143.5
PSO	297.3		342.6		592.2		667.1
SWEPCo	381.4		394.5		747.0		766.4