Financing Activities (Tables)

6 Months Ended

Jun. 30, 2021

Long-term Debt

Type of Debt	June 30, 2021		December 31, 2020
	(in millions)
Senior Unsecured Notes	$	26,778.5	$	25,116.1
Pollution Control Bonds	1,880.2		1,936.7
Notes Payable	260.7		239.1
Securitization Bonds	663.7		716.4
Spent Nuclear Fuel Obligation (a)	281.2		281.2
Junior Subordinated Notes (b)	1,628.0		1,624.1
Other Long-term Debt	1,625.5		1,158.9
Total Long-term Debt Outstanding	33,117.8		31,072.5
Long-term Debt Due Within One Year	2,458.5		2,086.1
Long-term Debt	$	30,659.3	$	28,986.4

(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 $327 million and $324 million as of June 30, 2021 and December 31, 2020, 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 Texas	Senior Unsecured Notes	$	450.0	3.45	2051
APCo	Senior Unsecured Notes	500.0		2.70	2031
I&M	Notes Payable	64.9		0.93	2025
I&M	Senior Unsecured Notes	450.0		3.25	2051
OPCo	Senior Unsecured Notes	450.0		1.63	2031
PSO	Other Long-term Debt	500.0		Variable	2022
SWEPCo	Senior Unsecured Notes	500.0		1.65	2026
Non-Registrant:
KPCo	Other Long-term Debt	150.0		Variable	2023
Transource Energy	Other Long-term Debt	17.8		Variable	2023
Total Issuances		$	3,082.7

(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	Securitization Bonds	$	29.7	2.85	2024
AEP Texas	Securitization Bonds	11.2		2.06	2025
APCo	Senior Unsecured Notes	350.0		4.60	2021
APCo	Pollution Control Bonds	17.5		4.63	2021
APCo	Securitization Bonds	12.5		2.01	2023
I&M	Notes Payable	1.9		Variable	2021
I&M	Other Long-term Debt	200.0		Variable	2021
I&M	Pollution Control Bonds	40.0		2.05	2021
I&M	Notes Payable	3.0		Variable	2022
I&M	Notes Payable	4.2		Variable	2022
I&M	Notes Payable	9.6		Variable	2023
I&M	Notes Payable	9.0		Variable	2024
I&M	Other Long-term Debt	1.0		6.00	2025
I&M	Notes Payable	13.0		Variable	2025
I&M	Notes Payable	1.0		0.93	2025
OPCo	Other Long-term Debt	0.1		1.15	2028
PSO	Senior Unsecured Notes	250.0		4.40	2021
PSO	Other Long-term Debt	0.3		3.00	2027
SWEPCo	Other Long-term Debt	1.5		4.68	2028
SWEPCo	Notes Payable	1.6		4.58	2032
Non-Registrant:
KPCo	Senior Unsecured Notes	39.8		7.25	2021
Transource Energy	Senior Unsecured Notes	1.2		2.75	2050
Total Retirements and Principal Payments		$	998.1

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, 2021		Limit
	(in millions)
AEP Texas	$	355.5	$	104.7	$	234.7	$	73.1	$	47.4	$	500.0
AEPTCo	357.7		10.6		260.7		1.9		(257.8)		820.0		(a)
APCo	27.8		616.9		13.2		136.0		91.7		500.0
I&M	166.5		368.2		117.5		58.1		99.9		500.0
OPCo	259.2		222.4		59.5		102.6		(56.3)		500.0
PSO	267.7		210.1		156.1		122.0		(135.1)		300.0
SWEPCo	280.3		156.4		170.6		142.0		(122.0)		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, 2021
	(in millions)
AEP Texas		$	7.1	$	6.9	$	6.9
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, 2021

June 30, 2021

Borrowing Limit

(in millions)

$

1.5

$

224.2

$

1.2

$

148.5

$

1.4

$

107.5

$

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,
	2021		2020
Maximum Interest Rate	0.40	%	2.70	%
Minimum Interest Rate	0.25	%	0.33	%

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	2021		2020		2021		2020
AEP Texas	0.33	%	1.55	%	0.36	%	1.97	%
AEPTCo	0.33	%	1.94	%	0.34	%	2.06	%
APCo	0.28	%	2.14	%	0.36	%	1.62	%
I&M	0.32	%	1.80	%	0.35	%	1.87	%
OPCo	0.34	%	1.80	%	0.29	%	2.06	%
PSO	0.34	%	1.71	%	0.28	%	1.95	%
SWEPCo	0.32	%	1.87	%	0.38	%	—	%

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

Six Months Ended June 30, 2021

Six Months Ended June 30, 2020

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

0.40

%

0.25

%

0.33

%

2.70

%

0.33

%

1.87

%

SWEPCo

0.40

%

0.25

%

0.33

%

2.70

%

0.33

%

1.87

%

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
2021	0.86	%	0.25	%	0.86	%	0.25	%	0.33	%	0.33	%
2020	2.70	%	0.50	%	2.70	%	0.50	%	1.88	%	1.86	%

Short Term Debt

		June 30, 2021				December 31, 2020
		Outstanding		Interest		Outstanding		Interest
Company	Type of Debt	Amount		Rate (a)		Amount		Rate (a)
		(dollars in millions)
AEP	Securitized Debt for Receivables (b)	$	578.2	0.20	%	$	592.0	0.85	%
AEP	Commercial Paper	2,049.8		0.27	%	1,852.3		0.29	%
AEP	364-Day Term Loan	500.0		0.74	%	—		—	%
SWEPCo	Notes Payable	—		—	%	35.0		2.55	%
	Total Short-term Debt	$	3,128.0			$	2,479.3

(a)Weighted-average rate.

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

Comparative Accounts Receivable Information

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
	(dollars in millions)
Effective Interest Rates on Securitization of Accounts Receivable	0.19		%	1.06		%	0.20		%	1.40		%
Net Uncollectible Accounts Receivable Written-Off	$	5.8		$	3.4		$	15.1		$	7.6

Customer Accounts Receivable Managed Portfolio

	June 30, 2021		December 31, 2020
	(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts	$	965.0	$	958.4
Short-term – Securitized Debt of Receivables	578.2		592.0
Delinquent Securitized Accounts Receivable	62.7		62.3
Bad Debt Reserves Related to Securitization	38.1		60.0
Unbilled Receivables Related to Securitization	304.1		296.8

Accounts Receivable and Accrued Unbilled Revenues

Company	June 30, 2021		December 31, 2020
	(in millions)
APCo	$	117.8	$	136.0
I&M	164.6		170.5
OPCo	375.8		398.8
PSO	117.6		85.0
SWEPCo	169.0		158.6

Fees Paid to AEP Credit for Customer Accounts Receivable Sold

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2021 (a)		2020		2021 (a)		2020
	(in millions)
APCo	$	1.2	$	1.3	$	2.4	$	3.0
I&M	1.6		2.6		3.2		5.4
OPCo	(2.4)		5.0		(1.1)		9.8
PSO	0.6		1.0		1.3		2.3
SWEPCo	1.3		1.9		2.8		4.0

(a)In 2020, an increase in allowance for doubtful accounts was recognized in response to the anticipated impact of COVID-19 on the collectability of accounts receivable, which caused an increase in fees paid by the registrants. In 2021, due to higher than expected collections of accounts receivables, allowance for doubtful accounts was adjusted resulting in the issuance of credits to offset the higher fees previously paid.

Proceeds on Sale of Receivables to AEP Credit

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2021		2020		2021		2020
	(in millions)
APCo	$	276.0	$	285.7	$	638.4	$	638.3
I&M	463.3		439.9		942.1		911.3
OPCo	597.8		556.7		1,199.1		1,127.0
PSO	323.8		297.3		608.7		592.2
SWEPCo	392.6		381.4		777.0		747.0