XML 56 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business Segments
 6 Months Ended
Jun. 30, 2016
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo, TCC and TNC.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs. With the sale of AEPRO in November 2015, the activities related to the AEP River Operations segment have been moved to Corporate and Other for the periods presented. See “AEPRO (Corporate and Other)” section of Note 6 for additional information.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2016 and 2015 and reportable segment balance sheet information as of June 30, 2016 and December 31, 2015. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,158.6

 
$
1,008.0

 
$
25.5

 
$
627.6

 
$
7.0

 
$
—

 
$
3,826.7

Other Operating Segments
23.9

 
52.7

 
74.0

 
172.6

 
16.9

 
(340.1
)
 
—

Total Revenues
$
2,182.5

 
$
1,060.7

 
$
99.5

 
$
800.2

 
$
23.9

 
$
(340.1
)
 
$
3,826.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(0.9
)
 
$
—

 
$
431.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Net Income (Loss)
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(1.0
)
 
$
—

 
$
431.3


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
27.3

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
24.8

 
$
—

 
$
1,007.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,646.0

 
$
2,214.3

 
$
47.2

 
$
1,486.8

 
$
12.8

 
$
—

 
$
8,407.1

Other Operating Segments
41.6

 
116.5

 
110.2

 
483.9

 
37.3

 
(789.5
)
 
—

Total Revenues
$
4,687.6

 
$
2,330.8

 
$
157.4

 
$
1,970.7

 
$
50.1

 
$
(789.5
)
 
$
8,407.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
(1.9
)
 
$
—

 
$
1,051.6

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
10.4

 
—

 
10.4

Net Income
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
8.5

 
$
—

 
$
1,062.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,710.7

 
$
14,217.3

 
$
4,529.6

 
$
7,561.1

 
$
361.0

 
$
(297.3
)
(b)
$
67,082.4

Accumulated Depreciation and Amortization
 
12,433.1

 
3,611.3

 
75.6

 
3,459.1

 
186.9

 
(119.8
)
(b)
19,646.2

Total Property Plant and Equipment - Net
 
$
28,277.6

 
$
10,606.0

 
$
4,454.0

 
$
4,102.0

 
$
174.1

 
$
(177.5
)
(b)
$
47,436.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
36,639.2

 
$
14,167.3

 
$
5,432.2

 
$
5,437.3

 
$
22,302.0

 
$
(20,660.9
)
(b) (c)
$
63,317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,232.0

 
$
261.6

 
$
—

 
$
511.7

 
$
1.0

 
$
—

 
$
2,006.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,079.9

 
4,814.7

 
1,660.2

 
135.3

 
847.3

 
—

 
17,537.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,331.9

 
$
5,076.3

 
$
1,660.2

 
$
679.2

 
$
848.3

 
$
(52.2
)
 
$
19,543.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,130.3

 
$
13,840.5

 
$
3,977.6

 
$
7,461.3

 
$
350.9

 
$
(279.2
)
(b)
$
65,481.4

Accumulated Depreciation and Amortization
 
12,335.0

 
3,529.2

 
52.3

 
3,367.0

 
176.9

 
(112.2
)
(b)
19,348.2

Total Property Plant and Equipment - Net
 
$
27,795.3

 
$
10,311.3

 
$
3,925.3

 
$
4,094.3

 
$
174.0

 
$
(167.0
)
(b)
$
46,133.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
35,792.3

 
$
14,640.2

 
$
5,012.1

 
$
5,414.5

 
$
21,907.4

 
$
(21,083.4
)
(b) (c)
$
61,683.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
935.4

 
$
824.7

 
$
—

 
$
71.6

 
$
0.1

 
$
—

 
$
1,831.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
9,833.0

 
4,776.8

 
1,648.4

 
639.5

 
843.2

 
—

 
17,740.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
10,788.4

 
$
5,601.5

 
$
1,648.4

 
$
743.3

 
$
843.3

 
$
(52.2
)
 
$
19,572.7


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and discontinued operations of AEPRO and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business, except OPCo, which has an electricity transmission and distribution business.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Appalachian Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo, TCC and TNC.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs. With the sale of AEPRO in November 2015, the activities related to the AEP River Operations segment have been moved to Corporate and Other for the periods presented. See “AEPRO (Corporate and Other)” section of Note 6 for additional information.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2016 and 2015 and reportable segment balance sheet information as of June 30, 2016 and December 31, 2015. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,158.6

 
$
1,008.0

 
$
25.5

 
$
627.6

 
$
7.0

 
$
—

 
$
3,826.7

Other Operating Segments
23.9

 
52.7

 
74.0

 
172.6

 
16.9

 
(340.1
)
 
—

Total Revenues
$
2,182.5

 
$
1,060.7

 
$
99.5

 
$
800.2

 
$
23.9

 
$
(340.1
)
 
$
3,826.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(0.9
)
 
$
—

 
$
431.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Net Income (Loss)
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(1.0
)
 
$
—

 
$
431.3


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
27.3

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
24.8

 
$
—

 
$
1,007.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,646.0

 
$
2,214.3

 
$
47.2

 
$
1,486.8

 
$
12.8

 
$
—

 
$
8,407.1

Other Operating Segments
41.6

 
116.5

 
110.2

 
483.9

 
37.3

 
(789.5
)
 
—

Total Revenues
$
4,687.6

 
$
2,330.8

 
$
157.4

 
$
1,970.7

 
$
50.1

 
$
(789.5
)
 
$
8,407.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
(1.9
)
 
$
—

 
$
1,051.6

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
10.4

 
—

 
10.4

Net Income
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
8.5

 
$
—

 
$
1,062.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,710.7

 
$
14,217.3

 
$
4,529.6

 
$
7,561.1

 
$
361.0

 
$
(297.3
)
(b)
$
67,082.4

Accumulated Depreciation and Amortization
 
12,433.1

 
3,611.3

 
75.6

 
3,459.1

 
186.9

 
(119.8
)
(b)
19,646.2

Total Property Plant and Equipment - Net
 
$
28,277.6

 
$
10,606.0

 
$
4,454.0

 
$
4,102.0

 
$
174.1

 
$
(177.5
)
(b)
$
47,436.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
36,639.2

 
$
14,167.3

 
$
5,432.2

 
$
5,437.3

 
$
22,302.0

 
$
(20,660.9
)
(b) (c)
$
63,317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,232.0

 
$
261.6

 
$
—

 
$
511.7

 
$
1.0

 
$
—

 
$
2,006.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,079.9

 
4,814.7

 
1,660.2

 
135.3

 
847.3

 
—

 
17,537.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,331.9

 
$
5,076.3

 
$
1,660.2

 
$
679.2

 
$
848.3

 
$
(52.2
)
 
$
19,543.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,130.3

 
$
13,840.5

 
$
3,977.6

 
$
7,461.3

 
$
350.9

 
$
(279.2
)
(b)
$
65,481.4

Accumulated Depreciation and Amortization
 
12,335.0

 
3,529.2

 
52.3

 
3,367.0

 
176.9

 
(112.2
)
(b)
19,348.2

Total Property Plant and Equipment - Net
 
$
27,795.3

 
$
10,311.3

 
$
3,925.3

 
$
4,094.3

 
$
174.0

 
$
(167.0
)
(b)
$
46,133.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
35,792.3

 
$
14,640.2

 
$
5,012.1

 
$
5,414.5

 
$
21,907.4

 
$
(21,083.4
)
(b) (c)
$
61,683.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
935.4

 
$
824.7

 
$
—

 
$
71.6

 
$
0.1

 
$
—

 
$
1,831.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
9,833.0

 
4,776.8

 
1,648.4

 
639.5

 
843.2

 
—

 
17,740.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
10,788.4

 
$
5,601.5

 
$
1,648.4

 
$
743.3

 
$
843.3

 
$
(52.2
)
 
$
19,572.7


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and discontinued operations of AEPRO and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business, except OPCo, which has an electricity transmission and distribution business.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Indiana Michigan Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo, TCC and TNC.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs. With the sale of AEPRO in November 2015, the activities related to the AEP River Operations segment have been moved to Corporate and Other for the periods presented. See “AEPRO (Corporate and Other)” section of Note 6 for additional information.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2016 and 2015 and reportable segment balance sheet information as of June 30, 2016 and December 31, 2015. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,158.6

 
$
1,008.0

 
$
25.5

 
$
627.6

 
$
7.0

 
$
—

 
$
3,826.7

Other Operating Segments
23.9

 
52.7

 
74.0

 
172.6

 
16.9

 
(340.1
)
 
—

Total Revenues
$
2,182.5

 
$
1,060.7

 
$
99.5

 
$
800.2

 
$
23.9

 
$
(340.1
)
 
$
3,826.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(0.9
)
 
$
—

 
$
431.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Net Income (Loss)
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(1.0
)
 
$
—

 
$
431.3


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
27.3

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
24.8

 
$
—

 
$
1,007.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,646.0

 
$
2,214.3

 
$
47.2

 
$
1,486.8

 
$
12.8

 
$
—

 
$
8,407.1

Other Operating Segments
41.6

 
116.5

 
110.2

 
483.9

 
37.3

 
(789.5
)
 
—

Total Revenues
$
4,687.6

 
$
2,330.8

 
$
157.4

 
$
1,970.7

 
$
50.1

 
$
(789.5
)
 
$
8,407.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
(1.9
)
 
$
—

 
$
1,051.6

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
10.4

 
—

 
10.4

Net Income
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
8.5

 
$
—

 
$
1,062.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,710.7

 
$
14,217.3

 
$
4,529.6

 
$
7,561.1

 
$
361.0

 
$
(297.3
)
(b)
$
67,082.4

Accumulated Depreciation and Amortization
 
12,433.1

 
3,611.3

 
75.6

 
3,459.1

 
186.9

 
(119.8
)
(b)
19,646.2

Total Property Plant and Equipment - Net
 
$
28,277.6

 
$
10,606.0

 
$
4,454.0

 
$
4,102.0

 
$
174.1

 
$
(177.5
)
(b)
$
47,436.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
36,639.2

 
$
14,167.3

 
$
5,432.2

 
$
5,437.3

 
$
22,302.0

 
$
(20,660.9
)
(b) (c)
$
63,317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,232.0

 
$
261.6

 
$
—

 
$
511.7

 
$
1.0

 
$
—

 
$
2,006.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,079.9

 
4,814.7

 
1,660.2

 
135.3

 
847.3

 
—

 
17,537.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,331.9

 
$
5,076.3

 
$
1,660.2

 
$
679.2

 
$
848.3

 
$
(52.2
)
 
$
19,543.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,130.3

 
$
13,840.5

 
$
3,977.6

 
$
7,461.3

 
$
350.9

 
$
(279.2
)
(b)
$
65,481.4

Accumulated Depreciation and Amortization
 
12,335.0

 
3,529.2

 
52.3

 
3,367.0

 
176.9

 
(112.2
)
(b)
19,348.2

Total Property Plant and Equipment - Net
 
$
27,795.3

 
$
10,311.3

 
$
3,925.3

 
$
4,094.3

 
$
174.0

 
$
(167.0
)
(b)
$
46,133.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
35,792.3

 
$
14,640.2

 
$
5,012.1

 
$
5,414.5

 
$
21,907.4

 
$
(21,083.4
)
(b) (c)
$
61,683.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
935.4

 
$
824.7

 
$
—

 
$
71.6

 
$
0.1

 
$
—

 
$
1,831.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
9,833.0

 
4,776.8

 
1,648.4

 
639.5

 
843.2

 
—

 
17,740.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
10,788.4

 
$
5,601.5

 
$
1,648.4

 
$
743.3

 
$
843.3

 
$
(52.2
)
 
$
19,572.7


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and discontinued operations of AEPRO and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business, except OPCo, which has an electricity transmission and distribution business.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Ohio Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo, TCC and TNC.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs. With the sale of AEPRO in November 2015, the activities related to the AEP River Operations segment have been moved to Corporate and Other for the periods presented. See “AEPRO (Corporate and Other)” section of Note 6 for additional information.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2016 and 2015 and reportable segment balance sheet information as of June 30, 2016 and December 31, 2015. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,158.6

 
$
1,008.0

 
$
25.5

 
$
627.6

 
$
7.0

 
$
—

 
$
3,826.7

Other Operating Segments
23.9

 
52.7

 
74.0

 
172.6

 
16.9

 
(340.1
)
 
—

Total Revenues
$
2,182.5

 
$
1,060.7

 
$
99.5

 
$
800.2

 
$
23.9

 
$
(340.1
)
 
$
3,826.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(0.9
)
 
$
—

 
$
431.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Net Income (Loss)
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(1.0
)
 
$
—

 
$
431.3


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
27.3

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
24.8

 
$
—

 
$
1,007.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,646.0

 
$
2,214.3

 
$
47.2

 
$
1,486.8

 
$
12.8

 
$
—

 
$
8,407.1

Other Operating Segments
41.6

 
116.5

 
110.2

 
483.9

 
37.3

 
(789.5
)
 
—

Total Revenues
$
4,687.6

 
$
2,330.8

 
$
157.4

 
$
1,970.7

 
$
50.1

 
$
(789.5
)
 
$
8,407.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
(1.9
)
 
$
—

 
$
1,051.6

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
10.4

 
—

 
10.4

Net Income
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
8.5

 
$
—

 
$
1,062.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,710.7

 
$
14,217.3

 
$
4,529.6

 
$
7,561.1

 
$
361.0

 
$
(297.3
)
(b)
$
67,082.4

Accumulated Depreciation and Amortization
 
12,433.1

 
3,611.3

 
75.6

 
3,459.1

 
186.9

 
(119.8
)
(b)
19,646.2

Total Property Plant and Equipment - Net
 
$
28,277.6

 
$
10,606.0

 
$
4,454.0

 
$
4,102.0

 
$
174.1

 
$
(177.5
)
(b)
$
47,436.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
36,639.2

 
$
14,167.3

 
$
5,432.2

 
$
5,437.3

 
$
22,302.0

 
$
(20,660.9
)
(b) (c)
$
63,317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,232.0

 
$
261.6

 
$
—

 
$
511.7

 
$
1.0

 
$
—

 
$
2,006.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,079.9

 
4,814.7

 
1,660.2

 
135.3

 
847.3

 
—

 
17,537.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,331.9

 
$
5,076.3

 
$
1,660.2

 
$
679.2

 
$
848.3

 
$
(52.2
)
 
$
19,543.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,130.3

 
$
13,840.5

 
$
3,977.6

 
$
7,461.3

 
$
350.9

 
$
(279.2
)
(b)
$
65,481.4

Accumulated Depreciation and Amortization
 
12,335.0

 
3,529.2

 
52.3

 
3,367.0

 
176.9

 
(112.2
)
(b)
19,348.2

Total Property Plant and Equipment - Net
 
$
27,795.3

 
$
10,311.3

 
$
3,925.3

 
$
4,094.3

 
$
174.0

 
$
(167.0
)
(b)
$
46,133.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
35,792.3

 
$
14,640.2

 
$
5,012.1

 
$
5,414.5

 
$
21,907.4

 
$
(21,083.4
)
(b) (c)
$
61,683.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
935.4

 
$
824.7

 
$
—

 
$
71.6

 
$
0.1

 
$
—

 
$
1,831.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
9,833.0

 
4,776.8

 
1,648.4

 
639.5

 
843.2

 
—

 
17,740.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
10,788.4

 
$
5,601.5

 
$
1,648.4

 
$
743.3

 
$
843.3

 
$
(52.2
)
 
$
19,572.7


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and discontinued operations of AEPRO and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business, except OPCo, which has an electricity transmission and distribution business.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Public Service Co Of Oklahoma [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo, TCC and TNC.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs. With the sale of AEPRO in November 2015, the activities related to the AEP River Operations segment have been moved to Corporate and Other for the periods presented. See “AEPRO (Corporate and Other)” section of Note 6 for additional information.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2016 and 2015 and reportable segment balance sheet information as of June 30, 2016 and December 31, 2015. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,158.6

 
$
1,008.0

 
$
25.5

 
$
627.6

 
$
7.0

 
$
—

 
$
3,826.7

Other Operating Segments
23.9

 
52.7

 
74.0

 
172.6

 
16.9

 
(340.1
)
 
—

Total Revenues
$
2,182.5

 
$
1,060.7

 
$
99.5

 
$
800.2

 
$
23.9

 
$
(340.1
)
 
$
3,826.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(0.9
)
 
$
—

 
$
431.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Net Income (Loss)
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(1.0
)
 
$
—

 
$
431.3


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
27.3

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
24.8

 
$
—

 
$
1,007.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,646.0

 
$
2,214.3

 
$
47.2

 
$
1,486.8

 
$
12.8

 
$
—

 
$
8,407.1

Other Operating Segments
41.6

 
116.5

 
110.2

 
483.9

 
37.3

 
(789.5
)
 
—

Total Revenues
$
4,687.6

 
$
2,330.8

 
$
157.4

 
$
1,970.7

 
$
50.1

 
$
(789.5
)
 
$
8,407.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
(1.9
)
 
$
—

 
$
1,051.6

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
10.4

 
—

 
10.4

Net Income
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
8.5

 
$
—

 
$
1,062.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,710.7

 
$
14,217.3

 
$
4,529.6

 
$
7,561.1

 
$
361.0

 
$
(297.3
)
(b)
$
67,082.4

Accumulated Depreciation and Amortization
 
12,433.1

 
3,611.3

 
75.6

 
3,459.1

 
186.9

 
(119.8
)
(b)
19,646.2

Total Property Plant and Equipment - Net
 
$
28,277.6

 
$
10,606.0

 
$
4,454.0

 
$
4,102.0

 
$
174.1

 
$
(177.5
)
(b)
$
47,436.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
36,639.2

 
$
14,167.3

 
$
5,432.2

 
$
5,437.3

 
$
22,302.0

 
$
(20,660.9
)
(b) (c)
$
63,317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,232.0

 
$
261.6

 
$
—

 
$
511.7

 
$
1.0

 
$
—

 
$
2,006.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,079.9

 
4,814.7

 
1,660.2

 
135.3

 
847.3

 
—

 
17,537.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,331.9

 
$
5,076.3

 
$
1,660.2

 
$
679.2

 
$
848.3

 
$
(52.2
)
 
$
19,543.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,130.3

 
$
13,840.5

 
$
3,977.6

 
$
7,461.3

 
$
350.9

 
$
(279.2
)
(b)
$
65,481.4

Accumulated Depreciation and Amortization
 
12,335.0

 
3,529.2

 
52.3

 
3,367.0

 
176.9

 
(112.2
)
(b)
19,348.2

Total Property Plant and Equipment - Net
 
$
27,795.3

 
$
10,311.3

 
$
3,925.3

 
$
4,094.3

 
$
174.0

 
$
(167.0
)
(b)
$
46,133.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
35,792.3

 
$
14,640.2

 
$
5,012.1

 
$
5,414.5

 
$
21,907.4

 
$
(21,083.4
)
(b) (c)
$
61,683.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
935.4

 
$
824.7

 
$
—

 
$
71.6

 
$
0.1

 
$
—

 
$
1,831.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
9,833.0

 
4,776.8

 
1,648.4

 
639.5

 
843.2

 
—

 
17,740.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
10,788.4

 
$
5,601.5

 
$
1,648.4

 
$
743.3

 
$
843.3

 
$
(52.2
)
 
$
19,572.7


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and discontinued operations of AEPRO and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business, except OPCo, which has an electricity transmission and distribution business.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Southwestern Electric Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo, TCC and TNC.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs. With the sale of AEPRO in November 2015, the activities related to the AEP River Operations segment have been moved to Corporate and Other for the periods presented. See “AEPRO (Corporate and Other)” section of Note 6 for additional information.
The tables below present AEP’s reportable segment income statement information for the three and six months ended June 30, 2016 and 2015 and reportable segment balance sheet information as of June 30, 2016 and December 31, 2015. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,108.2

 
$
1,076.2

 
$
41.3

 
$
655.3

 
$
11.9

 
$
—

 
$
3,892.9

Other Operating Segments
17.7

 
19.9

 
120.4

 
28.5

 
18.0

 
(204.5
)
 
—

Total Revenues
$
2,125.9

 
$
1,096.1

 
$
161.7

 
$
683.8

 
$
29.9

 
$
(204.5
)
 
$
3,892.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
26.3

 
$
—

 
$
506.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
210.5

 
$
124.6

 
$
95.3

 
$
49.7

 
$
23.8

 
$
—

 
$
503.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,158.6

 
$
1,008.0

 
$
25.5

 
$
627.6

 
$
7.0

 
$
—

 
$
3,826.7

Other Operating Segments
23.9

 
52.7

 
74.0

 
172.6

 
16.9

 
(340.1
)
 
—

Total Revenues
$
2,182.5

 
$
1,060.7

 
$
99.5

 
$
800.2

 
$
23.9

 
$
(340.1
)
 
$
3,826.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(0.9
)
 
$
—

 
$
431.4

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Net Income (Loss)
$
207.9

 
$
77.6

 
$
65.5

 
$
81.3

 
$
(1.0
)
 
$
—

 
$
431.3


 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
 June 30, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,326.3

 
$
2,153.5

 
$
70.6

 
$
1,369.2

 
$
18.2

 
$
—

 
$
7,937.8

Other Operating Segments
45.2

 
39.4

 
179.7

 
62.6

 
36.1

 
(363.0
)
 
—

Total Revenues
$
4,371.5

 
$
2,192.9

 
$
250.3

 
$
1,431.8

 
$
54.3

 
$
(363.0
)
 
$
7,937.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
27.3

 
$
—

 
$
1,009.5

Loss from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Net Income
$
489.2

 
$
232.6

 
$
140.0

 
$
120.4

 
$
24.8

 
$
—

 
$
1,007.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Six Months Ended 
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
4,646.0

 
$
2,214.3

 
$
47.2

 
$
1,486.8

 
$
12.8

 
$
—

 
$
8,407.1

Other Operating Segments
41.6

 
116.5

 
110.2

 
483.9

 
37.3

 
(789.5
)
 
—

Total Revenues
$
4,687.6

 
$
2,330.8

 
$
157.4

 
$
1,970.7

 
$
50.1

 
$
(789.5
)
 
$
8,407.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
(1.9
)
 
$
—

 
$
1,051.6

Income from Discontinued Operations, Net of Tax
—

 
—

 
—

 
—

 
10.4

 
—

 
10.4

Net Income
$
508.2

 
$
174.8

 
$
101.8

 
$
268.7

 
$
8.5

 
$
—

 
$
1,062.0

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
June 30, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,710.7

 
$
14,217.3

 
$
4,529.6

 
$
7,561.1

 
$
361.0

 
$
(297.3
)
(b)
$
67,082.4

Accumulated Depreciation and Amortization
 
12,433.1

 
3,611.3

 
75.6

 
3,459.1

 
186.9

 
(119.8
)
(b)
19,646.2

Total Property Plant and Equipment - Net
 
$
28,277.6

 
$
10,606.0

 
$
4,454.0

 
$
4,102.0

 
$
174.1

 
$
(177.5
)
(b)
$
47,436.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
36,639.2

 
$
14,167.3

 
$
5,432.2

 
$
5,437.3

 
$
22,302.0

 
$
(20,660.9
)
(b) (c)
$
63,317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,232.0

 
$
261.6

 
$
—

 
$
511.7

 
$
1.0

 
$
—

 
$
2,006.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,079.9

 
4,814.7

 
1,660.2

 
135.3

 
847.3

 
—

 
17,537.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,331.9

 
$
5,076.3

 
$
1,660.2

 
$
679.2

 
$
848.3

 
$
(52.2
)
 
$
19,543.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
40,130.3

 
$
13,840.5

 
$
3,977.6

 
$
7,461.3

 
$
350.9

 
$
(279.2
)
(b)
$
65,481.4

Accumulated Depreciation and Amortization
 
12,335.0

 
3,529.2

 
52.3

 
3,367.0

 
176.9

 
(112.2
)
(b)
19,348.2

Total Property Plant and Equipment - Net
 
$
27,795.3

 
$
10,311.3

 
$
3,925.3

 
$
4,094.3

 
$
174.0

 
$
(167.0
)
(b)
$
46,133.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
35,792.3

 
$
14,640.2

 
$
5,012.1

 
$
5,414.5

 
$
21,907.4

 
$
(21,083.4
)
(b) (c)
$
61,683.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
935.4

 
$
824.7

 
$
—

 
$
71.6

 
$
0.1

 
$
—

 
$
1,831.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
9,833.0

 
4,776.8

 
1,648.4

 
639.5

 
843.2

 
—

 
17,740.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
10,788.4

 
$
5,601.5

 
$
1,648.4

 
$
743.3

 
$
843.3

 
$
(52.2
)
 
$
19,572.7


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income, interest expense and discontinued operations of AEPRO and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.
Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business, except OPCo, which has an electricity transmission and distribution business.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.