Regulatory Assets Pending Final Regulatory Approval



	AEP
	March 31,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant (a)	$	199.6	$	159.9
Storm Related Costs	24.8		25.1
Plant Retirement Costs - Materials and Supplies	9.1		9.1
Ohio Capacity Deferral	—		96.7
Other Regulatory Assets Pending Final Regulatory Approval	1.4		1.3
Regulatory Assets Currently Not Earning a Return
Cook Plant Uprate Project	36.3		36.3
Storm Related Costs	35.8		25.9
Environmental Control Projects	31.2		24.1
Plant Retirement Costs - Asset Retirement Obligation Costs	29.6		29.6
Cook Plant Turbine	13.5		12.8
Other Regulatory Assets Pending Final Regulatory Approval	29.0		29.3
Total Regulatory Assets Pending Final Regulatory Approval (b)	$	410.3	$	450.1


(a)	In March 2017, $41 million was reclassified from accumulated depreciation to regulatory assets related to Northeastern Plant, Unit 3.

(b)

As of March 31, 2017, APCo has also recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of certain plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. The remaining Virginia net book value will be considered in APCo’s next depreciation study and be recovered through an increase in its Virginia depreciation rates beginning in the first quarter of 2021, as part of its 2018-2019 Virginia biennial March 2020 filing.

Regulatory Assets Pending Final Regulatory Approval



	APCo
	March 31,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Materials and Supplies	$	9.1	$	9.1
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs	29.6		29.6
Other Regulatory Assets Pending Final Regulatory Approval	0.6		0.6
Total Regulatory Assets Pending Final Regulatory Approval (a)	$	39.3	$	39.3

(a)

As of March 31, 2017, APCo has also recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of certain plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. The remaining Virginia net book value will be considered in APCo’s next depreciation study and be recovered through an increase in its Virginia depreciation rates beginning in the first quarter of 2021, as part of its 2018-2019 Virginia biennial March 2020 filing.

Regulatory Assets Pending Final Regulatory Approval



	I&M
	March 31,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Not Earning a Return
Cook Plant Uprate Project	$	36.3	$	36.3
Cook Plant Turbine	13.5		12.8
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	10.0		8.1
Rockport Dry Sorbent Injection System - Indiana	7.5		6.6
Other Regulatory Assets Pending Final Regulatory Approval	1.0		0.9
Total Regulatory Assets Pending Final Regulatory Approval	$	68.3	$	64.7

Regulatory Assets Pending Final Regulatory Approval



	OPCo
	March 31,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Capacity Deferral	$	—	$	96.7
Regulatory Assets Currently Not Earning a Return
gridSMART^® Costs	—		4.1
Total Regulatory Assets Pending Final Regulatory Approval	$	—	$	100.8

Regulatory Assets Pending Final Regulatory Approval



	PSO
	March 31,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant (a)	$	124.2	$	84.5
Other Regulatory Assets Pending Final Regulatory Approval	0.5		0.5
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	29.9		20.0
Environmental Control Projects	16.5		13.1
Total Regulatory Assets Pending Final Regulatory Approval	$	171.1	$	118.1


(a)	In March 2017, $41 million was reclassified from accumulated depreciation to regulatory assets related to Northeastern Plant, Unit 3.

Regulatory Assets Pending Final Regulatory Approval



	SWEPCo
	March 31,		December 31,
	2017		2016
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	$	75.4	$	75.4
Other Regulatory Assets Pending Final Regulatory Approval	0.8		0.8
Regulatory Assets Currently Not Earning a Return
Environmental Control Projects	14.7		11.0
Shipe Road Transmission Project - FERC	3.3		3.1
Asset Retirement Obligation - Arkansas, Louisiana	3.0		2.7
Rate Case Expense - Texas	1.3		1.0
Other Regulatory Assets Pending Final Regulatory Approval	2.0		1.9
Total Regulatory Assets Pending Final Regulatory Approval	$	100.5	$	95.9