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Derivatives and Hedging (Tables)
12 Months Ended
Dec. 31, 2023
Notional Volume of Derivative Instruments
Notional Volume of Derivative Instruments
December 31, 2023December 31, 2022
Primary Risk
Exposure
AEPAEP TexasAPCoI&MOPCoPSOSWEPCoAEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Commodity:
Power (MWhs)246.8 — 16.8 5.9 2.2 4.1 2.9 226.8 — 17.9 4.2 2.5 2.9 2.2 
Natural Gas (MMBtus)151.6 — 37.3 — — 34.9 17.9 77.1 — 1.9 — — 1.9 2.1 
Heating Oil and Gasoline (Gallons)6.5 1.8 1.0 0.6 1.2 0.7 0.9 6.9 1.9 1.0 0.7 1.4 0.9 1.0 
Interest Rate (USD)$80.1 $— $— $— $— $— $— $99.9 $— $— $— $— $— $— 
Interest Rate on Long-term Debt (USD)$1,300.0 $150.0 $— $— $— $— $— $1,650.0 $— $— $— $— $200.0 $— 
Fair Value of Derivative Instruments
December 31, 2023
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Risk Management Contracts - Commodity$555.1 $— $24.6 $30.1 $— $19.7 $12.0 
Hedging Contracts - Commodity56.7 — — — — — — 
Hedging Contracts - Interest Rate— — — — — — — 
Total Current Risk Management Assets611.8 — 24.6 30.1 — 19.7 12.0 
Long-term Risk Management Assets
Risk Management Contracts - Commodity468.8 — 0.3 12.0 — — 0.5 
Hedging Contracts - Commodity86.8 — — — — — — 
Hedging Contracts - Interest Rate— — — — — — — 
Total Long-term Risk Management Assets555.6 — 0.3 12.0 — — 0.5 
Total Assets$1,167.4 $— $24.9 $42.1 $— $19.7 $12.5 
Liabilities:
Current Risk Management Liabilities
Risk Management Contracts - Commodity$588.0 $0.2 $18.5 $5.4 $6.9 $29.7 $14.9 
Hedging Contracts - Commodity8.2 — — — — — — 
Hedging Contracts - Interest Rate50.5 2.7 — — — — — 
Total Current Risk Management Liabilities646.7 2.9 18.5 5.4 6.9 29.7 14.9 
Long-term Risk Management Liabilities
Risk Management Contracts - Commodity377.6 — 6.9 0.2 43.9 1.0 1.7 
Hedging Contracts - Commodity2.2 — — — — — — 
Hedging Contracts - Interest Rate56.9 — — — — — — 
Total Long-term Risk Management Liabilities436.7 — 6.9 0.2 43.9 1.0 1.7 
Total Liabilities$1,083.4 $2.9 $25.4 $5.6 $50.8 $30.7 $16.6 
Total MTM Derivative Contract Net Assets (Liabilities) Recognized$84.0 $(2.9)$(0.5)$36.5 $(50.8)$(11.0)$(4.1)
December 31, 2022
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Risk Management Contracts - Commodity$965.4 $— $69.3 $16.0 $— $24.1 $16.8 
Hedging Contracts - Commodity212.2 — — — — — — 
Hedging Contracts - Interest Rate1.8 — — — — 1.6 — 
Total Current Risk Management Assets1,179.4 — 69.3 16.0 — 25.7 16.8 
Long-term Risk Management Assets
Risk Management Contracts - Commodity565.6 — 0.7 0.5 — — — 
Hedging Contracts - Commodity148.9 — — — — — — 
Hedging Contracts - Interest Rate14.3 — — — — — — 
Total Long-term Risk Management Assets728.8 — 0.7 0.5 — — — 
Total Assets$1,908.2 $— $70.0 $16.5 $— $25.7 $16.8 
Liabilities:
Current Risk Management Liabilities
Risk Management Contracts - Commodity$663.8 $— $4.1 $0.9 $2.1 $2.1 $2.0 
Hedging Contracts - Commodity60.4 — — — — — — 
Hedging Contracts - Interest Rate41.4 — — — — — — 
Total Current Risk Management Liabilities765.6 — 4.1 0.9 2.1 2.1 2.0 
Long-term Risk Management Liabilities
Risk Management Contracts - Commodity412.0 — 0.7 0.3 37.9 — — 
Hedging Contracts - Commodity17.4 — — — — — — 
Hedging Contracts - Interest Rate91.1 — — — — — — 
Total Long-term Risk Management Liabilities520.5 — 0.7 0.3 37.9 — — 
Total Liabilities$1,286.1 $— $4.8 $1.2 $40.0 $2.1 $2.0 
Total MTM Derivative Contract Net Assets (Liabilities) Recognized$622.1 $— $65.2 $15.3 $(40.0)$23.6 $14.8 
December 31, 2023
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Gross Amounts Recognized$611.8 $— $24.6 $30.1 $— $19.7 $12.0 
Gross Amounts Offset(394.3)— (2.2)(2.3)— (0.7)(0.4)
Net Amounts Presented217.5 — 22.4 27.8 — 19.0 11.6 
Long-term Risk Management Assets
Gross Amounts Recognized555.6 — 0.3 12.0 — — 0.5 
Gross Amounts Offset(234.4)— (0.3)(0.2)— — (0.5)
Net Amounts Presented321.2 — — 11.8 — — — 
Total Assets$538.7 $— $22.4 $39.6 $— $19.0 $11.6 
Liabilities:
Current Risk Management Liabilities
Gross Amounts Recognized$646.7 $2.9 $18.5 $5.4 $6.9 $29.7 $14.9 
Gross Amounts Offset(417.1)(0.2)(2.6)(3.4)(0.1)(0.8)(0.5)
Net Amounts Presented229.6 2.7 15.9 2.0 6.8 28.9 14.4 
Long-term Risk Management Liabilities
Gross Amounts Recognized436.7 — 6.9 0.2 43.9 1.0 1.7 
Gross Amounts Offset(194.9)— (0.3)(0.2)— — (0.5)
Net Amounts Presented241.8 — 6.6 — 43.9 1.0 1.2 
Total Liabilities$471.4 $2.7 $22.5 $2.0 $50.7 $29.9 $15.6 
Total MTM Derivative Contract Net Assets (Liabilities)$67.3 $(2.7)$(0.1)$37.6 $(50.7)$(10.9)$(4.0)

December 31, 2022
AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
Assets:(in millions)
Current Risk Management Assets
Gross Amounts Recognized$1,179.4 $— $69.3 $16.0 $— $25.7 $16.8 
Gross Amounts Offset(830.6)— (0.2)(0.8)— (0.4)(0.4)
Net Amounts Presented348.8 — 69.1 15.2 — 25.3 16.4 
Long-term Risk Management Assets
Gross Amounts Recognized728.8 — 0.7 0.5 — — — 
Gross Amounts Offset(444.7)— (0.7)(0.3)— — — 
Net Amounts Presented284.1 — — 0.2 — — — 
Total Assets$632.9 $— $69.1 $15.4 $— $25.3 $16.4 
Liabilities:
Current Risk Management Liabilities
Gross Amounts Recognized$765.6 $— $4.1 $0.9 $2.1 $2.1 $2.0 
Gross Amounts Offset(620.4)— (0.5)(0.9)(0.3)(0.5)(0.6)
Net Amounts Presented145.2 — 3.6 — 1.8 1.6 1.4 
Long-term Risk Management Liabilities
Gross Amounts Recognized520.5 — 0.7 0.3 37.9 — — 
Gross Amounts Offset(175.3)— (0.6)(0.3)— — — 
Net Amounts Presented345.2 — 0.1 — 37.9 — — 
Total Liabilities$490.4 $— $3.7 $— $39.7 $1.6 $1.4 
Total MTM Derivative Contract Net Assets (Liabilities)$142.5 $— $65.4 $15.4 $(39.7)$23.7 $15.0 
Amount of Gain (Loss) Recognized on Risk Management Contracts
Amount of Gain (Loss) Recognized on Risk Management Contracts

Year Ended December 31, 2023
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$24.6 $— $— $— $— $— $— 
Generation & Marketing Revenues(423.8)— — — — — — 
Electric Generation, Transmission and Distribution Revenues— — 0.1 24.5 — — — 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation2.5 — 2.3 0.1 — — — 
Other Operation(0.2)(0.1)— — — — — 
Maintenance(0.8)(0.3)(0.1)(0.1)(0.1)(0.1)(0.2)
Regulatory Assets (a)(94.8)(0.2)(21.9)(3.1)(14.0)(29.8)(15.5)
Regulatory Liabilities (a)169.7 — 1.0 7.8 — 88.7 70.7 
Total Gain (Loss) on Risk Management Contracts$(322.8)$(0.6)$(18.6)$29.2 $(14.1)$58.8 $55.0 

Year Ended December 31, 2022
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$11.1 $— $— $— $— $— $— 
Generation & Marketing Revenues313.8 — — — — — — 
Electric Generation, Transmission and Distribution Revenues— — 0.5 10.6 — — — 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation5.0 — 4.5 0.1 — 0.2 — 
Other Operation4.8 1.5 0.4 0.5 0.8 0.6 0.8 
Maintenance6.7 1.8 0.9 0.6 1.2 0.8 1.1 
Regulatory Assets (a)52.6 0.1 (0.1)(0.8)52.1 3.6 (2.1)
Regulatory Liabilities (a)299.7 (0.6)82.4 8.6 3.7 98.5 77.9 
Total Gain on Risk Management Contracts$693.7 $2.8 $88.6 $19.6 $57.8 $103.7 $77.7 

Year Ended December 31, 2021
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$(0.6)$— $— $— $— $— $— 
Generation & Marketing Revenues169.1 — — — — — — 
Electric Generation, Transmission and Distribution Revenues— — (0.5)(0.1)— — — 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation2.0 — 1.8 — — — — 
Other Operation2.8 0.8 0.3 0.3 0.5 0.3 0.4 
Maintenance3.4 1.0 0.5 0.3 0.6 0.4 0.5 
Regulatory Assets (a)(9.1)— (2.7)(14.8)10.0 (3.6)3.6 
Regulatory Liabilities (a)156.4 0.2 55.9 (3.9)— 48.9 37.0 
Total Gain (Loss) on Risk Management Contracts$324.0 $2.0 $55.3 $(18.2)$11.1 $46.0 $41.5 

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.
Impact of Fair Value Hedges on Balance Sheet
Carrying Amount of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
(in millions)
Long-term Debt (a) (b)$(878.2)$(855.5)$68.4 $89.7 

(a)Amounts included within Noncurrent Liabilities line item Long-term Debt on the Balance Sheet.
(b)Amounts include $(30) million and $(38) million as of December 31, 2023 and 2022, respectively, for the fair value hedge adjustment of hedged debt obligations for which hedge accounting has been discontinued.
Gain (Loss) on Hedging Instruments
Years Ended December 31,
202320222021
(in millions)
Gain (Loss) on Interest Rate Contracts:
Fair Value Hedging Instruments (a)$29.0 $(90.4)$(35.5)
Fair Value Portion of Long-term Debt (a)(29.0)90.4 35.5 

(a)Gain (Loss) is included in Interest Expense on the statements of income.
Impact of Cash Flow Hedges on the Balance Sheet
Impact of Cash Flow Hedges on the Registrants’ Balance Sheets
December 31, 2023December 31, 2022
Portion Expected toPortion Expected to
AOCIbe Reclassed toAOCIbe Reclassed to
Gain (Loss)Net Income DuringGain (Loss)Net Income During
Net of Taxthe Next Twelve MonthsNet of Taxthe Next Twelve Months
CommodityInterest RateCommodityInterest RateCommodityInterest RateCommodityInterest Rate
(in millions)
AEP$104.9 $(8.1)$38.3 $3.2 $223.5 $0.3 $119.9 $0.3 
AEP Texas— 0.5 — 0.2 — (0.3)— (0.2)
APCo— 5.9 — 0.8 — 6.7 — 0.8 
I&M— (5.5)— (0.4)— (5.1)— (0.6)
PSO— (0.2)— — — 1.3 — 0.1 
SWEPCo— 1.3 — 0.3 — 1.1 — 0.2