Acquisitions and Impairments	3 Months Ended
Mar. 31, 2019
Impairment, Disposition and Assets and Liabilities Held for Sale	IMPAIRMENTS The disclosures in this note apply to AEP unless indicated otherwise. ACQUISITIONS Sempra Renewables LLC (Generation & Marketing Segment) In April 2019, AEP acquired Sempra Renewables LLC and its 724 MWs of wind generation and battery assets for approximately $1.1 billion, subject to working capital adjustments. AEP paid $584 million in cash and assumed approximately $358 million of existing project debt obligations of the non-consolidated joint ventures. Additionally, the acquisition includes the recognition of noncontrolling tax equity interest of an estimated $110 million as of the acquisition date associated with certain of the acquired wind farms. The purchase price will be allocated primarily to equity method investment (included in Deferred Charges and Other Noncurrent Assets) and Property, Plant and Equipment on AEP’s balance sheets. AEP has issued guarantees and letters of credit in relation to the acquisition to support project debt and other requirements. The wind generation portfolio includes seven wholly or jointly-owned wind farms with long-term PPAs for 100% of their energy production. Two of the jointly-owned wind farms have PPAs with I&M, OPCo and SWEPCo for a portion of their energy production and are accounted for under the accounting guidance for “Regulated Operations.” If the Sempra acquisition would have been completed prior to the Balance Sheet date, the revenue and earnings impact would have been immaterial to AEP for the three months ended March 31, 2019 and 2018, respectively. IMPAIRMENTS Other Assets (Corporate and Other) (Vertically Integrated Utilities Segment) (Applies to AEP and APCo) In the first quarter of 2018, AEP was notified by an equity investee that it had ceased operations. AEP recorded a pretax impairment of $21 million in Other Operation on the statements of income related to the equity investment and related assets. The impairment also had an immaterial impact to APCo.

Acquisitions and Impairments

3 Months Ended

Mar. 31, 2019

Impairment, Disposition and Assets and Liabilities Held for Sale

IMPAIRMENTS

The disclosures in this note apply to AEP unless indicated otherwise.

ACQUISITIONS

Sempra Renewables LLC (Generation & Marketing Segment)

In April 2019, AEP acquired Sempra Renewables LLC and its 724 MWs of wind generation and battery assets for approximately $1.1 billion, subject to working capital adjustments. AEP paid $584 million in cash and assumed approximately $358 million of existing project debt obligations of the non-consolidated joint ventures. Additionally, the acquisition includes the recognition of noncontrolling tax equity interest of an estimated $110 million as of the acquisition date associated with certain of the acquired wind farms. The purchase price will be allocated primarily to equity method investment (included in Deferred Charges and Other Noncurrent Assets) and Property, Plant and Equipment on AEP’s balance sheets. AEP has issued guarantees and letters of credit in relation to the acquisition to support project debt and other requirements.

The wind generation portfolio includes seven wholly or jointly-owned wind farms with long-term PPAs for 100% of their energy production. Two of the jointly-owned wind farms have PPAs with I&M, OPCo and SWEPCo for a portion of their energy production and are accounted for under the accounting guidance for “Regulated Operations.” If the Sempra acquisition would have been completed prior to the Balance Sheet date, the revenue and earnings impact would have been immaterial to AEP for the three months ended March 31, 2019 and 2018, respectively.

IMPAIRMENTS

Other Assets (Corporate and Other) (Vertically Integrated Utilities Segment) (Applies to AEP and APCo)

In the first quarter of 2018, AEP was notified by an equity investee that it had ceased operations. AEP recorded a pretax impairment of $21 million in Other Operation on the statements of income related to the equity investment and related assets. The impairment also had an immaterial impact to APCo.