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Derivatives and Hedging (Tables)
 9 Months Ended
Sep. 30, 2022
Notional Volume of Derivative Instruments
Notional Volume of Derivative Instruments
September 30, 2022
Primary Risk
Exposure		Unit of
Measure		AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Commodity:
      
PowerMWhs260.6 — 29.0 6.2 2.6 5.7 4.3 
Natural GasMMBtus80.3 — — — — — 1.8 
Heating Oil and GasolineGallons6.4 1.7 0.9 0.6 1.3 0.7 0.9 
Interest Rate
USD$99.9 $— $— $— $— $— $— 
Interest Rate on Long-term Debt
USD$1,150.0 $— $— $— $— $— $— 

December 31, 2021
Primary Risk
Exposure		Unit of
Measure		AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Commodity:
      
PowerMWhs287.9 — 33.1 13.6 2.7 11.9 3.4 
Natural GasMMBtus34.1 — — — — 1.3 5.1 
Heating Oil and GasolineGallons7.4 1.9 1.1 0.7 1.5 0.8 1.0 
Interest RateUSD$116.5 $— $— $— $— $— $— 
Interest Rate on Long-term Debt
USD$950.0 $— $— $— $— $— $— 
Fair Value of Derivative Instruments
AEP
September 30, 2022
Risk
Management
Contracts		Hedging ContractsGross Amounts
of Risk
Management
Assets/
Liabilities
Recognized		Gross
Amounts
Offset in the
Statement of
Financial
Position (b)		Net Amounts of
Assets/Liabilities
Presented in the
Statement of
Financial
Position (c)
Balance Sheet LocationCommodity (a)Commodity (a)Interest Rate (a)
 (in millions)
Current Risk Management Assets (d)$1,482.1 $411.1 $8.8 $1,902.0 $(1,331.8)$570.2 
Long-term Risk Management Assets686.6 177.4 — 864.0 (598.2)265.8 
Total Assets2,168.7 588.5 8.8 2,766.0 (1,930.0)836.0 
Current Risk Management Liabilities (e)1,005.7 10.9 21.3 1,037.9 (850.6)187.3 
Long-term Risk Management Liabilities501.6 4.9 114.1 620.6 (232.4)388.2 
Total Liabilities1,507.3 15.8 135.4 1,658.5 (1,083.0)575.5 
Total MTM Derivative Contract Net Assets (Liabilities) (f)
$661.4 $572.7 $(126.6)$1,107.5 $(847.0)$260.5 

December 31, 2021
Risk
Management
Contracts		Hedging ContractsGross Amounts
of Risk
Management
Assets/
Liabilities
Recognized		Gross
Amounts
Offset in the
Statement of
Financial
Position (b)		Net Amounts of
Assets/Liabilities
Presented in the
Statement of
Financial
Position (c)
Balance Sheet LocationCommodity (a)Commodity (a)Interest Rate (a)
(in millions)
Current Risk Management Assets (d)$513.4 $176.0 $1.2 $690.6 $(496.2)$194.4 
Long-term Risk Management Assets370.5 89.1 — 459.6 (192.6)267.0 
Total Assets883.9 265.1 1.2 1,150.2 (688.8)461.4 
Current Risk Management Liabilities (e)395.7 40.9 — 436.6 (361.2)75.4 
Long-term Risk Management Liabilities243.9 16.7 38.1 298.7 (68.4)230.3 
Total Liabilities639.6 57.6 38.1 735.3 (429.6)305.7 
Total MTM Derivative Contract Net Assets (Liabilities)
$244.3 $207.5 $(36.9)$414.9 $(259.2)$155.7 
AEP Texas
September 30, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$0.1 $0.1 $0.2 
Long-term Risk Management Assets(0.1)0.2 0.1 
Total Assets— 0.3 0.3 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities— 0.1 0.1 
Total Liabilities— 0.1 0.1 
Total MTM Derivative Contract Net Assets$— $0.2 $0.2 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$0.6 $(0.6)$— 
Long-term Risk Management Assets— — — 
Total Assets0.6 (0.6)— 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities— — — 
Total Liabilities— — — 
Total MTM Derivative Contract Net Assets (Liabilities)$0.6 $(0.6)$— 
APCo
September 30, 2022
Risk ManagementGross Amounts Offset Net Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$106.8 $— $106.8 
Long-term Risk Management Assets0.7 (0.6)0.1 
Total Assets107.5 (0.6)106.9 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities0.7 (0.7)— 
Total Liabilities0.7 (0.7)— 
Total MTM Derivative Contract Net Assets (f)$106.8 $0.1 $106.9 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$47.5 $(5.5)$42.0 
Long-term Risk Management Assets0.2 (0.2)— 
Total Assets47.7 (5.7)42.0 
Current Risk Management Liabilities7.2 (6.4)0.8 
Long-term Risk Management Liabilities0.2 (0.2)— 
Total Liabilities7.4 (6.6)0.8 
Total MTM Derivative Contract Net Assets$40.3 $0.9 $41.2 
I&M
September 30, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$12.3 $(0.9)$11.4 
Long-term Risk Management Assets0.6 (0.4)0.2 
Total Assets12.9 (1.3)11.6 
Current Risk Management Liabilities0.9 (0.9)— 
Long-term Risk Management Liabilities0.5 (0.5)— 
Total Liabilities1.4 (1.4)— 
Total MTM Derivative Contract Net Assets (f)$11.5 $0.1 $11.6 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$11.1 $(7.8)$3.3 
Long-term Risk Management Assets0.2 (0.2)— 
Total Assets11.3 (8.0)3.3 
Current Risk Management Liabilities14.8 (9.8)5.0 
Long-term Risk Management Liabilities0.2 (0.2)— 
Total Liabilities15.0 (10.0)5.0 
Total MTM Derivative Contract Net Assets (Liabilities)$(3.7)$2.0 $(1.7)
OPCo
September 30, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$2.0 $0.1 $2.1 
Long-term Risk Management Assets(0.1)0.1 — 
Total Assets1.9 0.2 2.1 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities45.1 — 45.1 
Total Liabilities45.1 — 45.1 
Total MTM Derivative Contract Net Assets (Liabilities) (f)$(43.2)$0.2 $(43.0)

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$0.5 $(0.5)$— 
Long-term Risk Management Assets— — — 
Total Assets0.5 (0.5)— 
Current Risk Management Liabilities6.7 — 6.7 
Long-term Risk Management Liabilities85.8 — 85.8 
Total Liabilities92.5 — 92.5 
Total MTM Derivative Contract Net Liabilities$(92.0)$(0.5)$(92.5)
PSO
September 30, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$44.4 $0.1 $44.5 
Long-term Risk Management Assets— — — 
Total Assets44.4 0.1 44.5 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities— — — 
Total Liabilities— — — 
Total MTM Derivative Contract Net Assets (f)$44.4 $0.1 $44.5 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$12.4 $(0.3)$12.1 
Long-term Risk Management Assets— — — 
Total Assets12.4 (0.3)12.1 
Current Risk Management Liabilities3.7 — 3.7 
Long-term Risk Management Liabilities— — — 
Total Liabilities3.7 — 3.7 
Total MTM Derivative Contract Net Assets (Liabilities)$8.7 $(0.3)$8.4 
SWEPCo
September 30, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$37.2 $(0.8)$36.4 
Long-term Risk Management Assets— 0.1 0.1 
Total Assets37.2 (0.7)36.5 
Current Risk Management Liabilities0.8 (0.8)— 
Long-term Risk Management Liabilities— — — 
Total Liabilities0.8 (0.8)— 
Total MTM Derivative Contract Net Assets (f)$36.4 $0.1 $36.5 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$10.1 $(0.3)$9.8 
Long-term Risk Management Assets1.1 — 1.1 
Total Assets11.2 (0.3)10.9 
Current Risk Management Liabilities2.1 — 2.1 
Long-term Risk Management Liabilities— — — 
Total Liabilities2.1 — 2.1 
Total MTM Derivative Contract Net Assets (Liabilities)$9.1 $(0.3)$8.8 

(a)Derivative instruments within these categories are disclosed as gross.  These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for “Derivatives and Hedging.”
(b)Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for “Derivatives and Hedging.”
(c)All derivative contracts subject to a master netting arrangement or similar agreement are offset in the statement of financial position.
(d)Amount excludes Risk Management Assets of $14.4 million and $6 million as of September 30, 2022 and December 31, 2021, respectively, classified as Assets Held for Sale on the balance sheets. See “Disposition of KPCo and KTCo” section of Note 6 for additional information.
(e)Amount excludes Risk Management Liabilities of $0 and $0.1 million as of September 30, 2022 and December 31, 2021, respectively, classified as Liabilities Held for Sale on the balance sheets. See “Disposition of KPCo and KTCo” section of Note 6 for additional information.
(f)Increase in amounts as of September 30, 2022 are primarily due to increases in commodity prices for power and natural gas and an increase in value of FTRs.
Amount of Gain (Loss) Recognized on Risk Management Contracts
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Three Months Ended September 30, 2022
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$2.1 $— $— $— $— $— $— 
Generation & Marketing Revenues116.7 — — — — — — 
Electric Generation, Transmission and Distribution Revenues
— — 0.3 — — — — 
Other Revenues - Nonaffiliated— — — 1.9 — — — 
Purchased Electricity for Resale0.9 — 0.9 0.1 — — — 
Other Operation1.4 0.4 0.1 0.1 0.2 0.2 0.2 
Maintenance2.0 0.5 0.2 0.2 0.4 0.2 0.3 
Regulatory Assets (a)4.3 — — 0.1 4.1 — 0.1 
Regulatory Liabilities (a)103.2 (1.5)59.7 3.8 0.9 19.7 7.0 
Total Gain (Loss) on Risk Management Contracts (b)$230.6 $(0.6)$61.2 $6.2 $5.6 $20.1 $7.6 
Three Months Ended September 30, 2021
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$(0.9)$— $— $— $— $— $— 
Generation & Marketing Revenues128.8 — — — — — — 
Electric Generation, Transmission and Distribution Revenues
— — (0.9)— — — — 
Purchased Electricity for Resale0.2 — 0.1 — — — — 
Other Operation0.9 0.3 0.1 0.1 0.1 0.1 0.2 
Maintenance1.1 0.2 0.2 0.1 0.2 0.1 0.1 
Regulatory Assets (a)(7.2)— (2.9)(16.9)14.9 — 0.1 
Regulatory Liabilities (a)46.5 (0.1)14.2 1.7 0.8 14.0 12.7 
Total Gain (Loss) on Risk Management Contracts$169.4 $0.4 $10.8 $(15.0)$16.0 $14.2 $13.1 
Nine Months Ended September 30, 2022
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$2.2 $— $— $— $— $— $— 
Generation & Marketing Revenues390.0 — — — — — — 
Electric Generation, Transmission and Distribution Revenues— — 0.4 (0.1)— — — 
Other Revenues - Nonaffiliated— — — 1.9 — — — 
Purchased Electricity for Resale3.3 — 3.0 0.1 — 0.1 — 
Other Operation3.7 1.1 0.3 0.4 0.6 0.5 0.6 
Maintenance5.2 1.4 0.7 0.5 0.9 0.6 0.8 
Regulatory Assets (a)49.3 0.1 — (1.2)49.0 3.6 (2.1)
Regulatory Liabilities (a)250.1 (0.6)79.9 7.0 2.5 71.4 64.8 
Total Gain on Risk Management Contracts (b)$703.8 $2.0 $84.3 $8.6 $53.0 $76.2 $64.1 
Nine Months Ended September 30, 2021
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$(0.6)$— $— $— $— $— $— 
Generation & Marketing Revenues144.9 — — — — — — 
Electric Generation, Transmission and Distribution Revenues— — (0.6)— — — — 
Purchased Electricity for Resale1.2 — 1.0 0.1 — — — 
Other Operation1.9 0.6 0.2 0.2 0.3 0.2 0.3 
Maintenance2.4 0.6 0.4 0.2 0.4 0.2 0.3 
Regulatory Assets (a)(7.9)— (2.9)(22.9)20.3 — 1.4 
Regulatory Liabilities (a)123.6 0.5 28.9 1.9 5.9 40.2 38.5 
Total Gain (Loss) on Risk Management Contracts$265.5 $1.7 $27.0 $(20.5)$26.9 $40.6 $40.5 

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.
(b)Increase in amounts for the three and nine months ended September 30, 2022 are primarily due to increases in commodity prices for power and natural gas and an increase in value of FTRs.
Impact of Fair Value Hedges on the Condensed Balance Sheet
Carrying Amount of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
September 30, 2022December 31, 2021September 30, 2022December 31, 2021
(in millions)
Long-term Debt (a) (b)$(849.1)$(952.3)$95.7 $(8.5)

(a)Amounts included on the Balance Sheet within Current and Noncurrent Liabilities line items Long-term Debt Due within One Year and Long-term Debt, respectively.
(b)Amounts include $(40) million and $(46) million as of September 30, 2022 and December 31, 2021, respectively, for the fair value hedge adjustment of hedged debt obligations for which hedge accounting has been discontinued.
Gain (Loss) on Hedging Instruments
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Gain (Loss) on Interest Rate Contracts:
Fair Value Hedging Instruments (a)$(36.0)$(0.1)$(98.4)$(23.8)
Fair Value Portion of Long-term Debt (a)36.0 0.1 98.4 23.8 

(a)Gain (Loss) is included in Interest Expense on the statements of income.
Impact of Cash Flow Hedges on the Condensed Balance Sheet
Impact of Cash Flow Hedges on AEP’s Balance Sheets
September 30, 2022December 31, 2021
CommodityInterest RateCommodityInterest Rate
(in millions)
AOCI Gain (Loss) Net of Tax$452.1 $(2.6)$163.7 $(21.3)
Portion Expected to be Reclassed to Net Income During the Next Twelve Months
316.2 (1.5)106.7 (3.3)
Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets
September 30, 2022December 31, 2021
Interest Rate
Expected to beExpected to be
Reclassified toReclassified to
Net Income DuringNet Income During
AOCI Gain (Loss)the NextAOCI Gain (Loss)the Next
CompanyNet of TaxTwelve MonthsNet of TaxTwelve Months
(in millions)
AEP Texas$(0.5)$(0.4)$(1.3)$(1.1)
APCo6.9 0.8 7.5 0.8 
I&M(5.5)(1.0)(6.7)(1.6)
SWEPCo1.2 0.2 1.2 0.1