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Variable Interest Entities
 9 Months Ended
Sep. 30, 2023
Variable Interest Entities VARIABLE INTEREST ENTITIES
The disclosures in this note apply to AEP unless indicated otherwise.

The accounting guidance for “Variable Interest Entities” is a consolidation model that considers if a company has a variable interest in a VIE.  A VIE is a legal entity that possesses any of the following conditions: the entity’s equity at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, equity owners are unable to direct the activities that most significantly impact the legal entity’s economic performance (or they possess disproportionate voting rights in relation to the economic interest in the legal entity), or the equity owners lack the obligation to absorb the legal entity’s expected losses or the right to receive the legal entity’s expected residual returns. Entities are required to consolidate a VIE when it is determined that they have a controlling financial interest in a VIE and therefore, are the primary beneficiary of that VIE, as defined by the accounting guidance for “Variable Interest Entities.” In determining whether AEP is the primary beneficiary of a VIE, management considers whether AEP has the power to direct the most significant activities of the VIE and is obligated to absorb losses or receive the expected residual returns that are significant to the VIE.

AEP holds ownership interests in businesses with varying ownership structures. AEP has not provided material financial or other support that was not previously contractually required to any of its consolidated VIEs. If an entity is determined not to be a VIE, or if the entity is determined to be a VIE and AEP is not deemed to be the primary beneficiary, the entity is accounted for under the equity method of accounting.

Consolidated Variable Interests Entities

The Annual Report on Form 10-K for the year ended December 31, 2022 includes a detailed discussion of the Registrants’ consolidated VIEs.

The balances below represent the assets and liabilities of consolidated VIEs. These balances include intercompany transactions that are eliminated upon consolidation.

American Electric Power Company, Inc. and Subsidiary Companies
Variable Interest Entities
September 30, 2023
Registrant Subsidiaries
SWEPCo
Sabine		I&M
DCC Fuel		AEP Texas Transition FundingAEP Texas Restoration FundingAPCo Appalachian Consumer Rate Relief Funding
(in millions)
ASSETS
Current Assets$4.8 $59.9 $49.4 $20.9 $4.7 
Net Property, Plant and Equipment— 104.1— — — 
Other Noncurrent Assets128.151.890.5(a)151.4 (b)145.3(c)
Total Assets$132.9 $215.8 $139.9 $172.3 $150.0 
LIABILITIES AND EQUITY
Current Liabilities$21.0 $59.8 $75.3 $36.0 $28.5 
Noncurrent Liabilities110.6156.060.3135.1119.6
Equity1.3— 4.31.21.9
Total Liabilities and Equity$132.9 $215.8 $139.9 $172.3 $150.0 

(a)Includes an intercompany item eliminated in consolidation of $10 million.
(b)Includes an intercompany item eliminated in consolidation of $6 million.
(c)Includes an intercompany item eliminated in consolidation of $2 million.
American Electric Power Company, Inc. and Subsidiary Companies
Variable Interest Entities
September 30, 2023
Other Consolidated VIEs
AEP CreditProtected
Cell
of EIS		Transource Energy
(in millions)
ASSETS
Current Assets$1,259.0 $202.9 $32.8 
Net Property, Plant and Equipment— — 499.8
Other Noncurrent Assets9.6 0.7 4.0
Total Assets$1,268.6 $203.6 $536.6 
LIABILITIES AND EQUITY
Current Liabilities$1,201.3 $54.1 $21.3 
Noncurrent Liabilities0.984.7 229.4
Equity66.4 64.8 285.9
Total Liabilities and Equity$1,268.6 $203.6 $536.6 

As of September 30, 2023, Apple Blossom, Black Oak, Santa Rita East and Dry Lake are no longer consolidated VIEs due to the sale of the Competitive Contracted Renewables Portfolio. See the “Disposition of the Competitive Contracted Renewables Portfolio” section of Note 6 for additional information.

American Electric Power Company, Inc. and Subsidiary Companies
Variable Interest Entities
December 31, 2022
Registrant Subsidiaries
SWEPCo
Sabine		I&M
DCC Fuel		AEP Texas Transition FundingAEP Texas Restoration FundingAPCo Appalachian Consumer Rate Relief Funding
(in millions)
ASSETS
Current Assets$108.3 $90.2 $27.0 $21.1 $13.5 
Net Property, Plant and Equipment7.2 179.1 — — — 
Other Noncurrent Assets130.0 94.0 140.9 (a)168.8 (b)164.6 (c)
Total Assets$245.5 $363.3 $167.9 $189.9 $178.1 
LIABILITIES AND EQUITY
Current Liabilities$25.4 $90.0 $73.2 $31.3 $29.3 
Noncurrent Liabilities219.4 273.3 90.4 157.4 146.9 
Equity0.7 — 4.3 1.2 1.9 
Total Liabilities and Equity$245.5 $363.3 $167.9 $189.9 $178.1 

(a)Includes an intercompany item eliminated in consolidation of $16 million.
(b)Includes an intercompany item eliminated in consolidation of $7 million.
(c)Includes an intercompany item eliminated in consolidation of $2 million.
American Electric Power Company, Inc. and Subsidiary Companies
Variable Interest Entities
December 31, 2022
Other Consolidated VIEs
AEP CreditProtected
Cell
of EIS		Transource EnergyApple Blossom and Black OakSanta Rita EastDry Lake
(in millions)
ASSETS
Current Assets$1,181.0 $194.5 $23.5 $8.3 $21.3 $4.0 
Net Property, Plant and Equipment— — 482.3 216.5 421.6 142.6 
Other Noncurrent Assets9.0 0.3 2.7 13.6 0.1 0.3 
Total Assets$1,190.0 $194.8 $508.5 $238.4 $443.0 $146.9 
LIABILITIES AND EQUITY
Current Liabilities$1,087.8 $46.4 $22.8 $4.5 $9.6 $1.0 
Noncurrent Liabilities0.9 79.1 218.6 5.4 7.3 0.7 
Equity101.3 69.3 267.1 228.5 426.1 145.2 
Total Liabilities and Equity$1,190.0 $194.8 $508.5 $238.4 $443.0 $146.9 

Significant Variable Interests in Non-Consolidated VIEs and Significant Equity Method Investments

The Annual Report on Form 10-K for the year ended December 31, 2022 includes a detailed discussion of significant variable interests in non-consolidated VIEs and other significant equity method investments. As of September 30, 2023, AEP no longer owns a significant equity method investment in four joint ventures through AEP Wind Holdings, LLC due to the sale of the Competitive Contracted Renewables Portfolio. See the “Disposition of the Competitive Contracted Renewables Portfolio” section of Note 6 for additional information.