BENEFIT PLANS The disclosures in this note apply to all Registrants except AEPTCo.
AEPSC sponsors a qualified pension plan and two unfunded non-qualified pension plans. Substantially all AEP subsidiary employees are covered by the qualified plan or both the qualified and a non-qualified pension plan. AEPSC also sponsors OPEB plans to provide health and life insurance benefits for retired employees.
Components of Net Periodic Benefit Cost (Credit)
Pension Plans
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2024 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 25.6 | | | $ | 2.3 | | | $ | 2.4 | | | $ | 3.3 | | | $ | 2.3 | | | $ | 1.5 | | | $ | 1.9 | | Interest Cost | | 51.9 | | | 4.4 | | | 6.2 | | | 5.9 | | | 4.8 | | | 2.5 | | | 3.1 | | Expected Return on Plan Assets | | (80.2) | | | (6.5) | | | (10.7) | | | (10.7) | | | (8.2) | | | (4.3) | | | (4.4) | | | | | | | | | | | | | | | | | Amortization of Net Actuarial Loss | | 1.0 | | | — | | | 0.1 | | | 0.1 | | | 0.1 | | | — | | | 0.1 | | Net Periodic Benefit Cost (Credit) (a) | | $ | (1.7) | | | $ | 0.2 | | | $ | (2.0) | | | $ | (1.4) | | | $ | (1.0) | | | $ | (0.3) | | | $ | 0.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2023 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 23.6 | | | $ | 2.1 | | | $ | 2.3 | | | $ | 2.9 | | | $ | 2.1 | | | $ | 1.4 | | | $ | 2.0 | | Interest Cost | | 54.8 | | | 4.5 | | | 6.6 | | | 6.3 | | | 5.0 | | | 2.7 | | | 3.4 | | Expected Return on Plan Assets | | (84.8) | | | (7.0) | | | (11.2) | | | (11.0) | | | (8.6) | | | (4.6) | | | (4.8) | | | | | | | | | | | | | | | | | Amortization of Net Actuarial Loss | | 0.3 | | | — | | | — | | | — | | | — | | | — | | | — | | Net Periodic Benefit Cost (Credit) | | $ | (6.1) | | | $ | (0.4) | | | $ | (2.3) | | | $ | (1.8) | | | $ | (1.5) | | | $ | (0.5) | | | $ | 0.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2024 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 76.8 | | | $ | 6.7 | | | $ | 7.3 | | | $ | 9.9 | | | $ | 7.0 | | | $ | 4.6 | | | $ | 5.9 | | Interest Cost | | 155.7 | | | 13.1 | | | 18.6 | | | 17.8 | | | 14.2 | | | 7.5 | | | 9.3 | | Expected Return on Plan Assets | | (240.6) | | | (19.5) | | | (32.1) | | | (32.1) | | | (24.5) | | | (13.0) | | | (13.2) | | | | | | | | | | | | | | | | | Amortization of Net Actuarial Loss | | 3.2 | | | 0.2 | | | 0.3 | | | 0.3 | | | 0.2 | | | 0.1 | | | 0.2 | | Net Periodic Benefit Cost (Credit) (a) | | $ | (4.9) | | | $ | 0.5 | | | $ | (5.9) | | | $ | (4.1) | | | $ | (3.1) | | | $ | (0.8) | | | $ | 2.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2023 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 70.8 | | | $ | 6.2 | | | $ | 6.8 | | | $ | 8.9 | | | $ | 6.3 | | | $ | 4.2 | | | $ | 5.8 | | Interest Cost | | 164.4 | | | 13.7 | | | 19.8 | | | 18.7 | | | 14.9 | | | 8.1 | | | 10.4 | | Expected Return on Plan Assets | | (254.4) | | | (21.0) | | | (33.5) | | | (33.1) | | | (25.6) | | | (13.8) | | | (14.5) | | | | | | | | | | | | | | | | | Amortization of Net Actuarial Loss | | 1.0 | | | — | | | — | | | — | | | — | | | — | | | — | | Net Periodic Benefit Cost (Credit) | | $ | (18.2) | | | $ | (1.1) | | | $ | (6.9) | | | $ | (5.5) | | | $ | (4.4) | | | $ | (1.5) | | | $ | 1.7 | |
(a)Excludes an immaterial settlement amount to a non-qualified pension plan in the second quarter of 2024 for AEP. Management continues to monitor settlements under the qualified pension plan as a result of the voluntary severance program announced in the second quarter of 2024. See Note 13 - Voluntary Severance Program for additional information. OPEB
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2024 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 1.1 | | | $ | — | | | $ | 0.2 | | | $ | 0.1 | | | $ | — | | | $ | 0.1 | | | $ | 0.1 | | Interest Cost | | 10.3 | | | 0.9 | | | 1.7 | | | 1.2 | | | 1.1 | | | 0.6 | | | 0.7 | | Expected Return on Plan Assets | | (27.8) | | | (2.3) | | | (4.1) | | | (3.4) | | | (3.0) | | | (1.5) | | | (1.9) | | Amortization of Prior Service Credit | | (3.1) | | | (0.3) | | | (0.5) | | | (0.4) | | | (0.3) | | | (0.2) | | | (0.3) | | Amortization of Net Actuarial Loss | | 0.8 | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | — | | | 0.1 | | Net Periodic Benefit Credit (a) | | $ | (18.7) | | | $ | (1.6) | | | $ | (2.6) | | | $ | (2.4) | | | $ | (2.1) | | | $ | (1.0) | | | $ | (1.3) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2023 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 1.1 | | | $ | 0.1 | | | $ | 0.1 | | | $ | 0.1 | | | $ | 0.1 | | | $ | 0.1 | | | $ | — | | Interest Cost | | 11.6 | | | 0.9 | | | 1.8 | | | 1.3 | | | 1.2 | | | 0.6 | | | 0.8 | | Expected Return on Plan Assets | | (27.4) | | | (2.2) | | | (4.0) | | | (3.3) | | | (2.9) | | | (1.5) | | | (1.8) | | Amortization of Prior Service Credit | | (15.8) | | | (1.3) | | | (2.3) | | | (2.2) | | | (1.6) | | | (1.0) | | | (1.3) | | Amortization of Net Actuarial Loss | | 3.7 | | | 0.3 | | | 0.6 | | | 0.5 | | | 0.4 | | | 0.2 | | | 0.3 | | Net Periodic Benefit Credit | | $ | (26.8) | | | $ | (2.2) | | | $ | (3.8) | | | $ | (3.6) | | | $ | (2.8) | | | $ | (1.6) | | | $ | (2.0) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2024 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 3.3 | | | $ | 0.2 | | | $ | 0.4 | | | $ | 0.4 | | | $ | 0.2 | | | $ | 0.2 | | | $ | 0.3 | | Interest Cost | | 31.4 | | | 2.5 | | | 5.0 | | | 3.6 | | | 3.2 | | | 1.7 | | | 2.0 | | Expected Return on Plan Assets | | (83.5) | | | (6.8) | | | (12.2) | | | (10.1) | | | (8.9) | | | (4.5) | | | (5.6) | | Amortization of Prior Service Credit | | (9.5) | | | (0.8) | | | (1.4) | | | (1.3) | | | (0.9) | | | (0.6) | | | (0.8) | | Amortization of Net Actuarial Loss | | 2.3 | | | 0.2 | | | 0.3 | | | 0.3 | | | 0.3 | | | 0.1 | | | 0.2 | | Net Periodic Benefit Credit (a) | | $ | (56.0) | | | $ | (4.7) | | | $ | (7.9) | | | $ | (7.1) | | | $ | (6.1) | | | $ | (3.1) | | | $ | (3.9) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2023 | | AEP | | AEP Texas | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Service Cost | | $ | 3.4 | | | $ | 0.3 | | | $ | 0.4 | | | $ | 0.5 | | | $ | 0.3 | | | $ | 0.2 | | | $ | 0.2 | | Interest Cost | | 34.7 | | | 2.7 | | | 5.5 | | | 4.0 | | | 3.5 | | | 1.8 | | | 2.2 | | Expected Return on Plan Assets | | (82.2) | | | (6.7) | | | (12.0) | | | (10.1) | | | (8.8) | | | (4.4) | | | (5.4) | | Amortization of Prior Service Credit | | (47.3) | | | (4.0) | | | (6.9) | | | (6.5) | | | (4.7) | | | (3.0) | | | (3.7) | | Amortization of Net Actuarial Loss | | 11.1 | | | 0.9 | | | 1.7 | | | 1.4 | | | 1.2 | | | 0.6 | | | 0.8 | | Net Periodic Benefit Credit | | $ | (80.3) | | | $ | (6.8) | | | $ | (11.3) | | | $ | (10.7) | | | $ | (8.5) | | | $ | (4.8) | | | $ | (5.9) | |
(a)Excludes an immaterial amount related to special termination benefits resulting from the voluntary severance program announced in the second quarter of 2024. See Note 13 - Voluntary Severance Program for additional information.
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