Rate Matters (Tables)

9 Months Ended

Sep. 30, 2021

Regulated Generating Units to be Retired

Plant	Net Book Value		Accelerated Depreciation Regulatory Asset		Cost of Removal Regulatory Liability			Projected Retirement Date	Current Authorized Recovery Period	Annual Depreciation (a)
	(dollars in millions)
Northeastern Plant, Unit 3	$	175.1	$	123.6	$	20.0	(b)	2026	(c)	$	14.9
Dolet Hills Power Station	13.0		126.8		24.4			2021	(d)	7.8
Pirkey Power Plant	135.4		68.0		39.2			2023	(e)	13.5
Welsh Plant, Units 1 and 3	493.7		35.6		58.2		(f)	2028	(g)	33.1

(a)Represents the amount of annual depreciation that has been collected from customers over the prior 12-month period.

(b)Includes Northeastern Plant, Unit 4, which was retired in 2016. Removal of Northeastern Plant, Unit 4, will be performed with Northeastern Plant, Unit 3, after retirement.

(c)Northeastern Plant, Unit 3 is currently being recovered through 2040.

(d)Dolet Hills Power Station is currently being recovered through 2026 in the Louisiana jurisdiction and through 2046 in the Arkansas and Texas jurisdictions.

(e)Pirkey Power Plant is currently being recovered through 2025 in the Louisiana jurisdiction and through 2045 in the Arkansas and Texas jurisdictions.

(f)Includes Welsh Plant, Unit 2, which was retired in 2016. Removal of Welsh Plant, Unit 2, will be performed with Welsh Plant, Units 1 and 3, after retirement.

(g)Unit 1 is being recovered through 2027 in the Louisiana jurisdiction and through 2037 in the Arkansas and Texas jurisdictions. Unit 3 is being recovered through 2032 in the Louisiana jurisdiction and through 2042 in the Arkansas and Texas jurisdictions.

Regulatory Assets Pending Final Regulatory Approval

	AEP
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Unrecovered Winter Storm Fuel Costs (a)	$	1,106.3	$	—
Dolet Hills Power Station Accelerated Depreciation	126.8		71.2
Pirkey Power Plant Accelerated Depreciation	68.0		12.2
Kentucky Deferred Purchase Power Expenses	45.9		41.3
Welsh Plant, Units 1 and 3 Accelerated Depreciation	35.6		3.6
Plant Retirement Costs – Unrecovered Plant, Louisiana	35.2		35.2
Oklaunion Power Station Accelerated Depreciation	33.0		34.4
Dolet Hills Power Station Fuel Costs - Louisiana	20.3		—
Other Regulatory Assets Pending Final Regulatory Approval	25.5		22.8
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	325.8		134.2
Plant Retirement Costs – Asset Retirement Obligation Costs	25.9		25.9
COVID-19	14.0		24.9
Asset Retirement Obligation - Louisiana	10.0		9.1
Other Regulatory Assets Pending Final Regulatory Approval	32.6		27.4
Total Regulatory Assets Pending Final Regulatory Approval	$	1,904.9	$	442.2

(a)PSO and SWEPCo have active fuel clauses that allow for the recovery of prudently incurred fuel and purchased power expenses. However, the recovery of these costs from customers may be extended over longer than usual time periods to mitigate the impact on customer bills. See “Impacts of Severe Winter Weather” section below for additional information.

	AEP Texas
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Advanced Metering System	$	16.6	$	16.3
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	22.7		0.8
Vegetation Management Program	5.2		3.8
Texas Retail Electric Provider Bad Debt Expense	4.1		—
COVID-19	3.9		10.5
Other Regulatory Assets Pending Final Regulatory Approval	5.3		1.5
Total Regulatory Assets Pending Final Regulatory Approval	$	57.8	$	32.9

	APCo
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
COVID-19 – Virginia	$	6.6	$	3.7
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	59.8		3.4
Plant Retirement Costs – Asset Retirement Obligation Costs	25.9		25.9
COVID-19 – West Virginia	0.4		1.5
Environmental Expense Deferral - Virginia	—		9.3
Other Regulatory Assets Pending Final Regulatory Approval	1.2		—
Total Regulatory Assets Pending Final Regulatory Approval	$	93.9	$	43.8

	I&M
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	—	$	0.5
Regulatory Assets Currently Not Earning a Return
COVID-19	1.7		3.8
Other Regulatory Assets Pending Final Regulatory Approval	1.7		—
Total Regulatory Assets Pending Final Regulatory Approval	$	3.4	$	4.3

	OPCo
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	$	5.5	$	4.0
COVID-19	1.9		4.4
Other Regulatory Assets Pending Final Regulatory Approval	0.1		—
Total Regulatory Assets Pending Final Regulatory Approval	$	7.5	$	8.4

	PSO
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Unrecovered Winter Storm Fuel Costs (a)	$	673.2	$	—
Oklaunion Power Station Accelerated Depreciation	33.0		34.4
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	29.3		15.8
Other Regulatory Assets Pending Final Regulatory Approval	0.9		0.3
Total Regulatory Assets Pending Final Regulatory Approval	$	736.4	$	50.5

(a)PSO has an active fuel clause that allows for the recovery of prudently incurred fuel and purchased power expenses. However, the recovery of these costs from customers may be extended over longer than usual time periods to mitigate the impact on customer bills. See “Impacts of Severe Winter Weather” section below for additional information.

	SWEPCo
	September 30,		December 31,
	2021		2020
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Unrecovered Winter Storm Fuel Costs (a)	$	433.1	$	—
Dolet Hills Power Station Accelerated Depreciation	126.8		71.2
Pirkey Power Plant Accelerated Depreciation	68.0		12.2
Welsh Plant, Units 1 and 3 Accelerated Depreciation	35.6		3.6
Plant Retirement Costs – Unrecovered Plant, Louisiana	35.2		35.2
Dolet Hills Power Station Fuel Costs- Louisiana	20.3		—
Other Regulatory Assets Pending Final Regulatory Approval	2.3		2.2
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	155.4		99.3
Asset Retirement Obligation - Louisiana	10.0		9.1
Other Regulatory Assets Pending Final Regulatory Approval	19.3		14.5
Total Regulatory Assets Pending Final Regulatory Approval	$	906.0	$	247.3

(a)SWEPCo has an active fuel clause that allows for the recovery of prudently incurred fuel and purchased power expenses. However, the recovery of these costs from customers may be extended over longer than usual time periods to mitigate the impact on customer bills. See “Impacts of Severe Winter Weather” section below for additional information.

February 2021 Winter Storm Costs

		September 30, 2021
Company	Jurisdiction	Capital		O&M		Regulatory Asset		Total
		(in millions)
APCo	Virginia	$	8.1	$	2.2	$	6.6	$	16.9
APCo	West Virginia	23.5		—		47.0		70.5
SWEPCo	Louisiana	6.0		—		45.4		51.4
KPCo	Kentucky	29.0		5.0		42.6		76.6
	Total	$	66.6	$	7.2	$	141.6	$	215.4

February 2021 Winter Storm Fuel Costs

	PSO		SWEPCo			Total
	(in millions)
Retail Customers (a)	$	673.2	$	433.1	(b)	$	1,106.3
Wholesale Customers	—		55.8			55.8
Total	$	673.2	$	488.9		$	1,162.1

(a)These costs were deferred as regulatory assets as of September 30, 2021.

(b)SWEPCo’s balance consists of $107 million, $151 million and $175 million related to the Arkansas, Louisiana and Texas jurisdictions, respectively.