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Leases (Tables)

12 Months Ended

Dec. 31, 2021


Year Ended December 31, 2021	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Cost	$	275.3	$	18.4	$	1.7	$	19.3	$	90.2	$	19.0	$	8.7	$	12.1
Finance Lease Cost:
Amortization of Right-of-Use Assets	74.7		6.7		—		7.7		12.9		4.9		3.2		11.0
Interest on Lease Liabilities	14.4		1.4		—		2.4		3.0		0.8		0.6		2.5
Total Lease Rental Costs (a)	$	364.4	$	26.5	$	1.7	$	29.4	$	106.1	$	24.7	$	12.5	$	25.6


Year Ended December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Cost	$	279.6	$	17.4	$	2.6	$	19.1	$	101.5	$	17.1	$	7.8	$	9.4
Finance Lease Cost:
Amortization of Right-of-Use Assets	61.9		6.3		—		7.4		6.5		4.7		3.5		10.9
Interest on Lease Liabilities	15.4		1.5		—		2.7		3.1		0.9		0.7		2.2
Total Lease Rental Costs (a)	$	356.9	$	25.2	$	2.6	$	29.2	$	111.1	$	22.7	$	12.0	$	22.5


Year Ended December 31, 2019	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Cost	$	286.0	$	16.5	$	2.5	$	19.5	$	93.1	$	18.0	$	6.8	$	8.0
Finance Lease Cost:
Amortization of Right-of-Use Assets	70.8		5.1		0.1		6.7		5.7		3.5		3.1		11.0
Interest on Lease Liabilities	16.4		1.4		—		2.9		2.9		0.7		0.6		2.9
Total Lease Rental Costs (a)	$	373.2	$	23.0	$	2.6	$	29.1	$	101.7	$	22.2	$	10.5	$	21.9

(a)Excludes variable and short-term lease costs, which were immaterial.

^[1]

Supplemental Balance Sheet Information Related to Leases


December 31, 2021	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
Weighted-Average Remaining Lease Term (years):
Operating Leases	10.39		5.91		2.95		5.68		5.87		6.69		20.89		20.24
Finance Leases	2.95		5.51		0.00		4.97		2.10		5.54		6.18		4.53
Weighted-Average Discount Rate:
Operating Leases	3.35	%	3.53	%	0.90	%	3.42	%	3.46	%	3.56	%	3.35	%	3.34	%
Finance Leases	3.26	%	4.31	%	—	%	7.16	%	3.02	%	4.19	%	4.23	%	4.68	%


December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
Weighted-Average Remaining Lease Term (years):
Operating Leases	5.30		6.51		2.01		6.27		3.50		7.44		7.03		7.54
Finance Leases	5.43		6.07		0.00		5.75		5.79		5.90		6.16		4.95
Weighted-Average Discount Rate:
Operating Leases	3.44	%	3.60	%	1.51	%	3.48	%	3.42	%	3.60	%	3.39	%	3.45	%
Finance Leases	5.68	%	4.39	%	—	%	7.33	%	8.29	%	4.25	%	4.35	%	4.77	%


Year Ended December 31, 2021	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating Cash Flows Used for Operating Leases	$	279.9	$	18.0	$	1.6	$	19.3	$	92.9	$	19.0	$	8.7	$	11.6
Operating Cash Flows Used for Finance Leases	14.3		1.4		—		2.4		2.9		0.8		0.6		2.5
Financing Cash Flows Used for Finance Leases	64.0		6.7		—		7.7		6.8		4.9		3.2		10.9

Non-cash Acquisitions Under Operating Leases	$	117.0	$	4.4	$	2.1	$	4.2	$	2.6	$	4.2	$	33.4	$	42.9


Year Ended December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating Cash Flows Used for Operating Leases	$	280.3	$	17.1	$	2.6	$	19.2	$	102.2	$	16.9	$	7.7	$	9.4
Operating Cash Flows Used for Finance Leases	15.4		1.5		—		2.7		3.1		0.9		0.7		2.2
Financing Cash Flows Used for Finance Leases	61.7		6.3		—		7.4		6.5		4.7		3.5		10.9

Non-cash Acquisitions Under Operating Leases	$	161.7	$	15.8	$	1.8	$	16.2	$	18.1	$	18.1	$	12.3	$	18.4

Property, Plant and Equipment and Related Obligations Under Finance Leases


December 31, 2021	AEP			AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Property, Plant and Equipment Under Finance Leases:
Generation	$	388.8		$	—	$	—	$	42.8	$	156.8	$	—	$	0.6	$	34.3
Other Property, Plant and Equipment	323.8			50.7		—		20.4		42.1		32.1		23.9		55.7
Total Property, Plant and Equipment	712.6			50.7		—		63.2		198.9		32.1		24.5		90.0
Accumulated Amortization	222.4			19.9		—		27.5		38.2		12.8		9.2		47.8
Net Property, Plant and Equipment Under Finance Leases	$	490.2	(a)	$	30.8	$	—	$	35.7	$	160.7	$	19.3	$	15.3	$	42.2

Obligations Under Finance Leases:
Noncurrent Liability	$	196.1		$	24.2	$	—	$	28.1	$	31.7	$	14.9	$	12.3	$	38.9
Liability Due Within One Year	304.6			6.6		—		7.6		130.5		4.4		3.0		10.8
Total Obligations Under Finance Leases	$	500.7	(b)	$	30.8	$	—	$	35.7	$	162.2	$	19.3	$	15.3	$	49.7

(a) Amount excludes $3 million of Net Property, Plant and Equipment Under Finance Leases classified as Assets Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.

(b) Amount excludes $3 million of Obligations Under Finance Leases classified as Liabilities Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.


December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Property, Plant and Equipment Under Finance Leases:
Generation	$	138.2	$	—	$	—	$	42.8	$	28.8	$	—	$	0.7	$	37.7
Other Property, Plant and Equipment	322.8		49.7		—		20.3		40.2		31.4		23.0		52.4
Total Property, Plant and Equipment	461.0		49.7		—		63.1		69.0		31.4		23.7		90.1
Accumulated Amortization	176.8		16.6		—		21.4		27.3		9.8		8.7		36.5
Net Property, Plant and Equipment Under Finance Leases	$	284.2	$	33.1	$	—	$	41.7	$	41.7	$	21.6	$	15.0	$	53.6

Obligations Under Finance Leases:
Noncurrent Liability	$	231.0	$	26.8	$	—	$	34.4	$	35.3	$	16.9	$	11.9	$	44.6
Liability Due Within One Year	58.1		6.3		—		7.3		6.4		4.7		3.1		10.7
Total Obligations Under Finance Leases	$	289.1	$	33.1	$	—	$	41.7	$	41.7	$	21.6	$	15.0	$	55.3

Operating Lease Assets and Related Obligations


December 31, 2021	AEP			AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Assets	$	578.3	(a)	$	73.6	$	2.0	$	66.9	$	63.5	$	81.2	$	68.9	$	80.1

Obligations Under Operating Leases:
Noncurrent Liability	$	492.8		$	61.3	$	1.3	$	52.4	$	48.9	$	68.6	$	62.2	$	77.7
Liability Due Within One Year	97.6			14.0		0.9		15.1		15.5		13.1		6.9		8.1
Total Obligations Under Operating Leases	$	590.4	(b)	$	75.3	$	2.2	$	67.5	$	64.4	$	81.7	$	69.1	$	85.8

(a) Amount excludes $11 million of Operating Lease Assets classified as Assets Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.

(b) Amount excludes $11 million of Obligations Under Operating Leases classified as Liabilities Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.


December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Assets	$	866.4	$	84.1	$	1.6	$	78.8	$	218.1	$	92.0	$	42.6	$	48.5

Obligations Under Operating Leases:
Noncurrent Liability	$	638.4	$	71.0	$	0.4	$	64.4	$	135.9	$	79.5	$	36.2	$	44.1
Liability Due Within One Year	241.3		14.5		1.2		14.9		85.6		13.1		6.5		7.9
Total Obligations Under Operating Leases	$	879.7	$	85.5	$	1.6	$	79.3	$	221.5	$	92.6	$	42.7	$	52.0

Finance Lease Liabilities Rolling Future Minimum Lease Payments


Finance Leases	AEP (a)		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
2022	$	317.3	$	7.8	$	—	$	9.8	$	133.7	$	5.1	$	3.6	$	12.6
2023	61.0		7.1		—		9.1		8.6		4.4		3.3		11.8
2024	64.7		5.9		—		8.3		11.6		3.7		2.8		15.9
2025	35.6		4.5		—		7.2		5.9		2.5		2.1		5.6
2026	20.1		3.5		—		2.7		3.5		2.0		1.8		2.3
After 2026	39.2		5.9		—		4.1		10.1		4.0		3.9		6.0
Total Future Minimum Lease Payments	537.9		34.7		—		41.2		173.4		21.7		17.5		54.2
Less: Imputed Interest	37.2		3.9		—		5.5		11.2		2.4		2.2		4.5
Estimated Present Value of Future Minimum Lease Payments	$	500.7	$	30.8	$	—	$	35.7	$	162.2	$	19.3	$	15.3	$	49.7

(a) Amount excludes $3 million of Obligations Under Finance Leases classified as Liabilities Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.

Operating Lease Liabilities Rolling Future Minimum Lease Payments


Operating Leases	AEP (a)		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
2022	$	119.6	$	16.7	$	0.9	$	17.5	$	17.6	$	16.2	$	9.2	$	13.0
2023	102.2		15.5		0.7		14.8		11.7		15.2		8.9		11.8
2024	89.9		14.1		0.4		11.9		10.4		13.8		8.1		10.0
2025	76.7		11.7		0.2		9.1		9.3		12.1		6.9		8.7
2026	64.0		9.5		—		7.2		7.3		11.0		6.0		7.5
After 2026	272.4		16.9		—		14.1		15.0		24.2		62.6		80.4
Total Future Minimum Lease Payments	724.8		84.4		2.2		74.6		71.3		92.5		101.7		131.4
Less: Imputed Interest	134.4		9.1		—		7.1		6.9		10.8		32.6		45.6
Estimated Present Value of Future Minimum Lease Payments	$	590.4	$	75.3	$	2.2	$	67.5	$	64.4	$	81.7	$	69.1	$	85.8

(a) Amount excludes $11 million of Obligations Under Operating Leases classified as Liabilities Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.

^[2]

Maximum Potential Loss


Company	Maximum Potential Loss
	(in millions)
AEP	$	47.4
AEP Texas	11.1
APCo	6.2
I&M	4.1
OPCo	7.5
PSO	4.6
SWEPCo	5.2

Future Minimum Lease Payments


Future Minimum Lease Payments	AEP (a)		I&M
	(in millions)
2022	$	248.7	$	124.4
Total Future Minimum Lease Payments	$	248.7	$	124.4

(a) AEP’s future minimum lease payments include equal shares from AEGCo and I&M.

[1]	Excludes variable and short-term lease costs, which were immaterial.
[2]	Amount excludes $11 million of Obligations Under Operating Leases classified as Liabilities Held for Sale on the balance sheet. See “Disposition of KPCo and KTCo” section of Note 7 for additional information.