Comprehensive Income

12 Months Ended

Dec. 31, 2020

Comprehensive Income

COMPREHENSIVE INCOME

The disclosures in this note apply to all Registrants except for AEPTCo. AEPTCo does not have any components of other comprehensive income for any period presented in the financial statements.

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCI and details of reclassifications from AOCI for the years ended December 31, 2020, 2019 and 2018.  The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 8 - Benefit Plans for additional information.

AEP
	Cash Flow Hedges					Pension and OPEB
For the Year Ended December 31, 2020	Commodity		Interest Rate			Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	(103.5)	$	(11.5)		$	130.7	$	(163.4)	$	(147.7)
Change in Fair Value Recognized in AOCI	(89.2)		(39.9)		(a)	—		62.7		(66.4)
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(0.4)		—			—		—		(0.4)
Purchased Electricity for Resale (b)	167.6		—			—		—		167.6
Interest Expense (b)	—		4.9			—		—		4.9
Amortization of Prior Service Cost (Credit)	—		—			(19.2)		—		(19.2)
Amortization of Actuarial (Gains) Losses	—		—			10.3		—		10.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit	167.2		4.9			(8.9)		—		163.2
Income Tax (Expense) Benefit	35.1		1.0			(1.9)		—		34.2
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	132.1		3.9			(7.0)		—		129.0
Net Current Period Other Comprehensive Income (Loss)	42.9		(36.0)			(7.0)		62.7		62.6
Balance in AOCI as of December 31, 2020	$	(60.6)	$	(47.5)		$	123.7	$	(100.7)	$	(85.1)

AEP
	Cash Flow Hedges					Pension and OPEB
For the Year Ended December 31, 2019	Commodity		Interest Rate			Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	(23.0)	$	(12.6)		$	136.3	$	(221.1)	$	(120.4)
Change in Fair Value Recognized in AOCI	(127.2)		(0.2)		(a)	—		57.7		(69.7)
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(0.2)		—			—		—		(0.2)
Purchased Electricity for Resale (b)	59.5		—			—		—		59.5
Interest Expense (b)	—		1.5			—		—		1.5
Amortization of Prior Service Cost (Credit)	—		—			(19.2)		—		(19.2)
Amortization of Actuarial (Gains) Losses	—		—			12.1		—		12.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	59.3		1.5			(7.1)		—		53.7
Income Tax (Expense) Benefit	12.6		0.2			(1.5)		—		11.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	46.7		1.3			(5.6)		—		42.4
Net Current Period Other Comprehensive Income (Loss)	(80.5)		1.1			(5.6)		57.7		(27.3)
Balance in AOCI as of December 31, 2019	$	(103.5)	$	(11.5)		$	130.7	$	(163.4)	$	(147.7)

	Cash Flow Hedges						Pension and OPEB
For the Year Ended December 31, 2018	Commodity		Interest Rate		Securities Available for Sale		Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	(28.4)	$	(13.0)	$	11.9	$	141.6	$	(179.9)	$	(67.8)
Change in Fair Value Recognized in AOCI	37.3		2.3		—		—		(33.0)		6.6
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(0.1)		—		—		—		—		(0.1)
Purchased Electricity for Resale (b)	(32.6)		—		—		—		—		(32.6)
Interest Expense (b)	—		1.1		—		—		—		1.1
Amortization of Prior Service Cost (Credit)	—		—		—		(19.5)		—		(19.5)
Amortization of Actuarial (Gains) Losses	—		—		—		12.8		—		12.8
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(32.7)		1.1		—		(6.7)		—		(38.3)
Income Tax (Expense) Benefit	(6.9)		0.3		—		(1.4)		—		(8.0)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(25.8)		0.8		—		(5.3)		—		(30.3)
Net Current Period Other Comprehensive Income (Loss)	11.5		3.1		—		(5.3)		(33.0)		(23.7)
ASU 2018-02 Adoption	(6.1)		(2.7)		—		—		(8.2)		(17.0)
ASU 2016-01 Adoption	—		—		(11.9)		—		—		(11.9)
Balance in AOCI as of December 31, 2018	$	(23.0)	$	(12.6)	$	—	$	136.3	$	(221.1)	$	(120.4)

AEP Texas
				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019		$	(3.4)	$	4.9	$	(14.3)	$	(12.8)
Change in Fair Value Recognized in AOCI		0.1		—		2.6		2.7
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3		—		—		1.3
Amortization of Prior Service Cost (Credit)		—		(0.1)		—		(0.1)
Amortization of Actuarial (Gains) Losses		—		0.3		—		0.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3		0.2		—		1.5
Income Tax (Expense) Benefit		0.3		—		—		0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0		0.2		—		1.2
Net Current Period Other Comprehensive Income (Loss)		1.1		0.2		2.6		3.9
Balance in AOCI as of December 31, 2020		$	(2.3)	$	5.1	$	(11.7)	$	(8.9)

				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2019		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2018		$	(4.4)	$	4.7	$	(15.4)	$	(15.1)
Change in Fair Value Recognized in AOCI		—		—		1.1		1.1
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3		—		—		1.3
Amortization of Prior Service Cost (Credit)		—		(0.1)		—		(0.1)
Amortization of Actuarial (Gains) Losses		—		0.3		—		0.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3		0.2		—		1.5
Income Tax (Expense) Benefit		0.3		—		—		0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0		0.2		—		1.2
Net Current Period Other Comprehensive Income (Loss)		1.0		0.2		1.1		2.3
ASU 2018-02 Adoption		—		—		—		—
Balance in AOCI as of December 31, 2019		$	(3.4)	$	4.9	$	(14.3)	$	(12.8)

				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2018		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2017		$	(4.5)	$	4.5	$	(12.6)	$	(12.6)
Change in Fair Value Recognized in AOCI		—		—		(1.0)		(1.0)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3		—		—		1.3
Amortization of Prior Service Cost (Credit)		—		(0.1)		—		(0.1)
Amortization of Actuarial (Gains) Losses		—		0.4		—		0.4
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3		0.3		—		1.6
Income Tax (Expense) Benefit		0.3		0.1		—		0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0		0.2		—		1.2
Net Current Period Other Comprehensive Income (Loss)		1.0		0.2		(1.0)		0.2
ASU 2018-02 Adoption		(0.9)		—		(1.8)		(2.7)
Balance in AOCI as of December 31, 2018		$	(4.4)	$	4.7	$	(15.4)	$	(15.1)

APCo
				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019		$	0.9	$	9.2	$	(5.1)	$	5.0
Change in Fair Value Recognized in AOCI		(0.7)		—		7.7		7.0
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		(1.3)		—		—		(1.3)
Amortization of Prior Service Cost (Credit)		—		(5.3)		—		(5.3)
Amortization of Actuarial (Gains) Losses		—		0.5		—		0.5
Reclassifications from AOCI, before Income Tax (Expense) Benefit		(1.3)		(4.8)		—		(6.1)
Income Tax (Expense) Benefit		(0.3)		(1.0)		—		(1.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		(1.0)		(3.8)		—		(4.8)
Net Current Period Other Comprehensive Income (Loss)		(1.7)		(3.8)		7.7		2.2
Balance in AOCI as of December 31, 2020		$	(0.8)	$	5.4	$	2.6	$	7.2

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedges -		of Deferred		Funded
For the Year Ended December 31, 2019	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	1.8	$	11.7	$	(18.5)	$	(5.0)
Change in Fair Value Recognized in AOCI	—		—		13.4		13.4
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.1)		—		—		(1.1)
Amortization of Prior Service Cost (Credit)	—		(5.3)		—		(5.3)
Amortization of Actuarial (Gains) Losses	—		2.1		—		2.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.1)		(3.2)		—		(4.3)
Income Tax (Expense) Benefit	(0.2)		(0.7)		—		(0.9)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(0.9)		(2.5)		—		(3.4)
Net Current Period Other Comprehensive Income (Loss)	(0.9)		(2.5)		13.4		10.0
Balance in AOCI as of December 31, 2019	$	0.9	$	9.2	$	(5.1)	$	5.0

					Pension and OPEB
					Amortization		Changes in
	Cash Flow Hedges				of Deferred		Funded
For the Year Ended December 31, 2018	Commodity		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	—	$	2.2	$	14.8	$	(15.7)	$	1.3
Change in Fair Value Recognized in AOCI	(0.7)		—		—		(2.6)		(3.3)
Amount of (Gain) Loss Reclassified from AOCI
Purchased Electricity for Resale (b)	0.9		—		—		—		0.9
Interest Expense (b)	—		(1.1)		—		—		(1.1)
Amortization of Prior Service Cost (Credit)	—		—		(5.2)		—		(5.2)
Amortization of Actuarial (Gains) Losses	—		—		1.3		—		1.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit	0.9		(1.1)		(3.9)		—		(4.1)
Income Tax (Expense) Benefit	0.2		(0.2)		(0.8)		—		(0.8)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	0.7		(0.9)		(3.1)		—		(3.3)
Net Current Period Other Comprehensive Income (Loss)	—		(0.9)		(3.1)		(2.6)		(6.6)
ASU 2018-02 Adoption	—		0.5		—		(0.2)		0.3
Balance in AOCI as of December 31, 2018	$	—	$	1.8	$	11.7	$	(18.5)	$	(5.0)

I&M
			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	(9.9)	$	4.9	$	(6.6)	$	(11.6)
Change in Fair Value Recognized in AOCI	—		—		3.1		3.1
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0		—		—		2.0
Amortization of Prior Service Cost (Credit)	—		(0.8)		—		(0.8)
Amortization of Actuarial (Gains) Losses	—		0.7		—		0.7
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0		(0.1)		—		1.9
Income Tax (Expense) Benefit	0.4		—		—		0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6		(0.1)		—		1.5
Net Current Period Other Comprehensive Income (Loss)	1.6		(0.1)		3.1		4.6
Balance in AOCI as of December 31, 2020	$	(8.3)	$	4.8	$	(3.5)	$	(7.0)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2019	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	(11.5)	$	5.1	$	(7.4)	$	(13.8)
Change in Fair Value Recognized in AOCI	—		—		0.8		0.8
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0		—		—		2.0
Amortization of Prior Service Cost (Credit)	—		(0.8)		—		(0.8)
Amortization of Actuarial (Gains) Losses	—		0.6		—		0.6
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0		(0.2)		—		1.8
Income Tax (Expense) Benefit	0.4		—		—		0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6		(0.2)		—		1.4
Net Current Period Other Comprehensive Income (Loss)	1.6		(0.2)		0.8		2.2
Balance in AOCI as of December 31, 2019	$	(9.9)	$	4.9	$	(6.6)	$	(11.6)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2018	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	(10.7)	$	5.1	$	(6.5)	$	(12.1)
Change in Fair Value Recognized in AOCI	—		—		(0.6)		(0.6)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0		—		—		2.0
Amortization of Prior Service Cost (Credit)	—		(0.8)		—		(0.8)
Amortization of Actuarial (Gains) Losses	—		0.8		—		0.8
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0		—		—		2.0
Income Tax (Expense) Benefit	0.4		—		—		0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6		—		—		1.6
Net Current Period Other Comprehensive Income (Loss)	1.6		—		(0.6)		1.0
ASU 2018-02 Adoption	(2.4)		—		(0.3)		(2.7)
Balance in AOCI as of December 31, 2018	$	(11.5)	$	5.1	$	(7.4)	$	(13.8)

OPCo

	Cash Flow Hedge –
For the Year Ended December 31, 2020	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2019	$	—
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	—
Reclassifications from AOCI, before Income Tax (Expense) Benefit	—
Income Tax (Expense) Benefit	—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	—
Net Current Period Other Comprehensive Income (Loss)	—
Balance in AOCI as of December 31, 2020	$	—

	Cash Flow Hedge –
For the Year Ended December 31, 2019	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2018	$	1.0
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3)
Income Tax (Expense) Benefit	(0.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0)
Net Current Period Other Comprehensive Income (Loss)	(1.0)
Balance in AOCI as of December 31, 2019	$	—

	Cash Flow Hedge –
For the Year Ended December 31, 2018	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2017	$	1.9
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.7)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.7)
Income Tax (Expense) Benefit	(0.4)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.3)
Net Current Period Other Comprehensive Income (Loss)	(1.3)
ASU 2018-02 Adoption	0.4
Balance in AOCI as of December 31, 2018	$	1.0

PSO

	Cash Flow Hedge –
For the Year Ended December 31, 2020	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2019	$	1.1
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3)
Income Tax (Expense) Benefit	(0.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0)
Net Current Period Other Comprehensive Income (Loss)	(1.0)
Balance in AOCI as of December 31, 2020	$	0.1

	Cash Flow Hedge –
For the Year Ended December 31, 2019	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2018	$	2.1
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3)
Income Tax (Expense) Benefit	(0.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0)
Net Current Period Other Comprehensive Income (Loss)	(1.0)
Balance in AOCI as of December 31, 2019	$	1.1

	Cash Flow Hedge –
For the Year Ended December 31, 2018	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2017	$	2.6
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3)
Income Tax (Expense) Benefit	(0.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0)
Net Current Period Other Comprehensive Income (Loss)	(1.0)
ASU 2018-02 Adoption	0.5
Balance in AOCI as of December 31, 2018	$	2.1

SWEPCo
			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	(1.8)	$	(1.3)	$	1.8	$	(1.3)
Change in Fair Value Recognized in AOCI	—		—		3.2		3.2
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	1.9		—		—		1.9
Amortization of Prior Service Cost (Credit)	—		(2.0)		—		(2.0)
Amortization of Actuarial (Gains) Losses	—		0.1		—		0.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	1.9		(1.9)		—		—
Income Tax (Expense) Benefit	0.4		(0.4)		—		—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.5		(1.5)		—		—
Net Current Period Other Comprehensive Income (Loss)	1.5		(1.5)		3.2		3.2
Balance in AOCI as of December 31, 2020	$	(0.3)	$	(2.8)	$	5.0	$	1.9

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2019	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	(3.3)	$	(0.2)	$	(1.9)	$	(5.4)
Change in Fair Value Recognized in AOCI	—		—		3.7		3.7
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	1.9		—		—		1.9
Amortization of Prior Service Cost (Credit)	—		(2.0)		—		(2.0)
Amortization of Actuarial (Gains) Losses	—		0.6		—		0.6
Reclassifications from AOCI, before Income Tax (Expense) Benefit	1.9		(1.4)		—		0.5
Income Tax (Expense) Benefit	0.4		(0.3)		—		0.1
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.5		(1.1)		—		0.4
Net Current Period Other Comprehensive Income (Loss)	1.5		(1.1)		3.7		4.1
Balance in AOCI as of December 31, 2019	$	(1.8)	$	(1.3)	$	1.8	$	(1.3)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2018	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	(6.0)	$	1.2	$	0.8	$	(4.0)
Change in Fair Value Recognized in AOCI	2.3		—		(3.1)		(0.8)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.1		—		—		2.1
Amortization of Prior Service Cost (Credit)	—		(2.0)		—		(2.0)
Amortization of Actuarial (Gains) Losses	—		0.2		—		0.2
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.1		(1.8)		—		0.3
Income Tax (Expense) Benefit	0.4		(0.4)		—		—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.7		(1.4)		—		0.3
Net Current Period Other Comprehensive Income (Loss)	4.0		(1.4)		(3.1)		(0.5)
ASU 2018-02 Adoption	(1.3)		—		0.4		(0.9)
Balance in AOCI as of December 31, 2018	$	(3.3)	$	(0.2)	$	(1.9)	$	(5.4)

(a)The change in fair value includes $6 million and $4 million related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC for the years ended December 31, 2020 and December 31, 2019. See “Sempra Renewables LLC” section of Note 17 for additional information.

(b)Amounts reclassified to the referenced line item on the statements of income.