Rate Matters (Tables)

3 Months Ended

Mar. 31, 2019

Regulated Generating Unit Expected to be Retired by 2020 [Table Text Block]

Gross Investment		Accumulated Depreciation		Net Investment		Accelerated Depreciation Regulatory Asset (a)		Materials and Supplies		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
(dollars in millions)
$	106.5	$	68.7	$	37.8	$	10.9	$	3.1	$	5.0	2020	27 years

(a)

In October 2018, PSO changed depreciation rates to utilize the 2020 end-of-life and defer depreciation expense to a regulatory asset for the amount in excess of the previously OCC-approved depreciation rates for Oklaunion Power Station. See “2018 Oklahoma Base Rate Case” discussion below for additional information.

Regulatory Assets Pending Final Regulatory Approval

	AEP
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	$	50.3	$	50.3
Kentucky Deferred Purchase Power Expenses	18.4		14.5
Other Regulatory Assets Pending Final Regulatory Approval	16.4		14.8
Regulatory Assets Currently Not Earning a Return
Storm Related Costs (a)	152.0		152.4
Plant Retirement Costs - Asset Retirement Obligation Costs	35.3		35.3
Other Regulatory Assets Pending Final Regulatory Approval	15.4		20.7
Total Regulatory Assets Pending Final Regulatory Approval (b)	$	287.8	$	288.0

(a) As of March 31, 2019, AEP Texas has deferred $137 million related to Hurricane Harvey. In March 2019, AEP Texas filed a request to securitize total estimated distribution-related system restoration costs with the PUCT. See “Texas Storm Cost Securitization” discussion below for additional information.

(b) In 2015, APCo recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of 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. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates.

	AEP Texas
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (a)	$	152.0	$	152.4
Rate Case Expense	0.4		0.2
Total Regulatory Assets Pending Final Regulatory Approval	$	152.4	$	152.6

(a) As of March 31, 2019, AEP Texas has deferred $137 million related to Hurricane Harvey. In March 2019, AEP Texas filed a request to securitize total estimated distribution-related system restoration costs with the PUCT. See “Texas Storm Cost Securitization” discussion below for additional information.

	APCo
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Materials and Supplies	$	5.1	$	9.0
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs	35.3		35.3
Other Regulatory Assets Pending Final Regulatory Approval	—		0.6
Total Regulatory Assets Pending Final Regulatory Approval (a)	$	40.4	$	44.9

(a) In 2015, APCo recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of 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. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates.

	I&M
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	3.4	$	3.3
Total Regulatory Assets Pending Final Regulatory Approval	$	3.4	$	3.3

	OPCo
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	0.1	$	1.0
Total Regulatory Assets Pending Final Regulatory Approval	$	0.1	$	1.0

	PSO
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Oklaunion Power Station Accelerated Depreciation	$	10.9	$	5.5
Total Regulatory Assets Pending Final Regulatory Approval	$	10.9	$	5.5

	SWEPCo
	March 31,		December 31,
	2019		2018
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	$	50.3	$	50.3
Other Regulatory Assets Pending Final Regulatory Approval	0.3		0.3
Regulatory Assets Currently Not Earning a Return
Asset Retirement Obligation - Arkansas, Louisiana	5.8		5.3
Rate Case Expense - Texas	0.9		4.9
Other Regulatory Assets Pending Final Regulatory Approval	3.7		3.6
Total Regulatory Assets Pending Final Regulatory Approval	$	61.0	$	64.4

Total Estimated Distribution-Related System Restoration Costs [Table Text Block]

Total Estimated Distribution-Related System Restoration Costs
	(in millions)
Distribution-Related System Restoration Costs	$	264.6
Estimated Carrying Costs	26.9
Up-front Qualified Costs	4.6
Total Distribution-Related System Restoration Costs	296.1
less:
Insurance Proceeds and Government Grants	(3.1		)
Excess ADIT (a)	(63.5		)
Total Requested Distribution-Related System Restoration Costs	$	229.5

(a)

Amount represents Non-Hurricane Harvey Excess ADIT that is not subject to rate normalization requirements.