Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

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

Disaggregated Revenues from Contracts with Customers

The tables below represent AEP’s reportable segment revenues from contracts with customers, net of respective provisions for refund, by type of revenue:

	Three Months Ended June 30, 2019
	Vertically Integrated Utilities			Transmission and Distribution Utilities		AEP Transmission Holdco			Generation & Marketing			Corporate and Other		Reconciling Adjustments			AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	755.0		$	435.0	$	—		$	—		$	—	$	—		$	1,190.0
Commercial Revenues	517.5			287.6		—			—			—		—			805.1
Industrial Revenues	549.2			109.4		—			—			—		(3.3		)	655.3
Other Retail Revenues	43.6			11.1		—			—			—		—			54.7
Total Retail Revenues	1,865.3			843.1		—			—			—		(3.3		)	2,705.1
Wholesale and Competitive Retail Revenues:
Generation Revenues (a)	205.9			—		—			299.7			—		7.2			512.8
Transmission Revenues (b)	64.1			113.5		289.8			—			—		(173.6		)	293.8
Marketing, Competitive Retail and Renewable Revenues	—			—		—			106.9			—		—			106.9
Total Wholesale and Competitive Retail Revenues	270.0			113.5		289.8			406.6			—		(166.4		)	913.5
Other Revenues from Contracts with Customers (c)	42.0			38.7		5.0			(12.6		)	21.5		(35.3		)	59.3
Total Revenues from Contracts with Customers	2,177.3			995.3		294.8			394.0			21.5		(205.0		)	3,677.9
Other Revenues:
Alternative Revenues (c)	(53.5		)	11.4		(15.9		)	—			—		(36.9		)	(94.9		)
Other Revenues (c)	—			39.0		—			18.7			2.3		(69.4		)	(9.4		)
Total Other Revenues	(53.5		)	50.4		(15.9		)	18.7			2.3		(106.3		)	(104.3		)
Total Revenues	$	2,123.8		$	1,045.7	$	278.9		$	412.7		$	23.8	$	(311.3	)	$	3,573.6

(a) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing is $34 million. The remaining affiliated amounts are immaterial.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $201 million. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues.

	Three Months Ended June 30, 2018
	Vertically Integrated Utilities			Transmission and Distribution Utilities			AEP Transmission Holdco			Generation & Marketing		Corporate and Other		Reconciling Adjustments			AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	857.0		$	530.9		$	—		$	—	$	—	$	—		$	1,387.9
Commercial Revenues	551.9			320.1			—			—		—		—			872.0
Industrial Revenues	570.7			134.2			—			—		—		—			704.9
Other Retail Revenues	46.4			10.9			—			—		—		—			57.3
Total Retail Revenues (a)	2,026.0			996.1			—			—		—		—			3,022.1
Wholesale and Competitive Retail Revenues:
Generation Revenues (b)	245.3			—			—			126.1		—		(26.6		)	344.8
Transmission Revenues (c)	60.6			90.5			213.0			—		—		(99.3		)	264.8
Marketing, Competitive Retail and Renewable Revenues	—			—			—			331.4		—		—			331.4
Total Wholesale and Competitive Retail Revenues	305.9			90.5			213.0			457.5		—		(125.9		)	941.0
Other Revenues from Contracts with Customers (d)	41.6			45.5			8.4			0.1		21.3		(22.6		)	94.3
Total Revenues from Contracts with Customers	2,373.5			1,132.1			221.4			457.6		21.3		(148.5		)	4,057.4
Other Revenues:
Alternative Revenues (d)	(10.3		)	(16.4		)	(8.9		)	—		—		—			(35.6		)
Other Revenues (d)	(14.2		)	21.3			—			3.1		2.5		(21.3		)	(8.6		)
Total Other Revenues	(24.5		)	4.9			(8.9		)	3.1		2.5		(21.3		)	(44.2		)
Total Revenues	$	2,349.0		$	1,137.0		$	212.5		$	460.7	$	23.8	$	(169.8	)	$	4,013.2

(a) 2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing is $25 million. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $134 million. The remaining affiliated amounts are immaterial.

(d) Amounts include affiliated and nonaffiliated revenues.

	Three Months Ended June 30, 2019
	AEP Texas		AEPTCo			APCo		I&M		OPCo		PSO			SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	142.0	$	—		$	256.5	$	142.2	$	288.3	$	147.7		$	140.7
Commercial Revenues	106.0		—			132.1		111.8		182.7		101.3			113.1
Industrial Revenues	33.6		—			144.6		134.8		77.1		83.0			83.7
Other Retail Revenues	7.9		—			18.4		1.7		3.3		20.2			2.2
Total Retail Revenues	289.5		—			551.6		390.5		551.4		352.2			339.7
Wholesale Revenues:
Generation Revenues (a)	—		—			62.2		113.4		—		5.8			44.8
Transmission Revenues (b)	98.5		276.8			25.7		6.1		14.4		15.5			23.8
Total Wholesale Revenues	98.5		276.8			87.9		119.5		14.4		21.3			68.6
Other Revenues from Contracts with Customers (c)	7.8		5.0			16.1		28.6		33.3		5.8			5.3
Total Revenues from Contracts with Customers	395.8		281.8			655.6		538.6		599.1		379.3			413.6
Other Revenues:
Alternative Revenues (d)	1.2		(14.9		)	0.2		4.5		6.0		(31.2		)	(38.1		)
Other Revenues (d)	41.0		—			—		—		1.5		—			—
Total Other Revenues	42.2		(14.9		)	0.2		4.5		7.5		(31.2		)	(38.1		)
Total Revenues	$	438.0	$	266.9		$	655.8	$	543.1	$	606.6	$	348.1		$	375.5

(a) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo is $30 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $198 million. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $23 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.

(d) Amounts include affiliated and nonaffiliated revenues.

	Three Months Ended June 30, 2018
	AEP Texas		AEPTCo (f)			APCo			I&M			OPCo			PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	143.2	$	—		$	282.3		$	163.0		$	388.1		$	169.4	$	158.2
Commercial Revenues	103.4		—			140.6			122.1			215.7			105.2		123.9
Industrial Revenues	31.8		—			152.5			145.9			103.3			77.3		87.2
Other Retail Revenues	7.3		—			18.8			1.5			3.3			22.3		2.1
Total Retail Revenues (a)	285.7		—			594.2			432.5			710.4			374.2		371.4
Wholesale Revenues:
Generation Revenues (b)	—		—			56.8			142.1			—			8.3		55.7
Transmission Revenues (c)	78.0		221.4			14.5			3.9			12.0			5.3		21.8
Total Wholesale Revenues	78.0		221.4			71.3			146.0			12.0			13.6		77.5
Other Revenues from Contracts with Customers (d)	7.2		6.4			15.1			25.9			38.9			4.9		5.3
Total Revenues from Contracts with Customers	370.9		227.8			680.6			604.4			761.3			392.7		454.2
Other Revenues:
Alternative Revenues (e)	0.2		(27.7		)	(13.6		)	(0.5		)	(16.6		)	5.6		2.9
Other Revenues (e)	17.2		—			—			(14.2		)	4.1			—		—
Total Other Revenues	17.4		(27.7		)	(13.6		)	(14.7		)	(12.5		)	5.6		2.9
Total Revenues	$	388.3	$	200.1		$	667.0		$	589.7		$	748.8		$	398.3	$	457.1

(a) 2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo is $29 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $104 million. The remaining affiliated amounts are immaterial.

(d) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $26 million primarily relating to the barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.

(e) Amounts include affiliated and nonaffiliated revenues.

(f) These amounts presented reflect the revisions made to AEPTCo’s previously issued financial statement. See the “revisions to Previously Issued Financial Statements” section of Note 1 for additional information.

	Six Months Ended June 30, 2019
	Vertically Integrated Utilities			Transmission and Distribution Utilities		AEP Transmission Holdco			Generation & Marketing			Corporate and Other		Reconciling Adjustments			AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	1,737.4		$	1,021.1	$	—		$	—		$	—	$	—		$	2,758.5
Commercial Revenues	1,028.7			598.5		—			—			—		—			1,627.2
Industrial Revenues	1,081.3			233.3		—			—			—		(1.5		)	1,313.1
Other Retail Revenues	86.9			22.2		—			—			—		—			109.1
Total Retail Revenues	3,934.3			1,875.1		—			—			—		(1.5		)	5,807.9
Wholesale and Competitive Retail Revenues:
Generation Revenues (a)	430.6			—		—			408.5			—		(71.3		)	767.8
Transmission Revenues (b)	137.6			213.1		544.9			—			—		(386.4		)	509.2
Marketing, Competitive Retail and Renewable Revenues	—			—		—			469.5			—		—			469.5
Total Wholesale and Competitive Retail Revenues	568.2			213.1		544.9			878.0			—		(457.7		)	1,746.5
Other Revenues from Contracts with Customers (c)	81.5			84.7		8.1			(10.3		)	44.8		(71.4		)	137.4
Total Revenues from Contracts with Customers	4,584.0			2,172.9		553.0			867.7			44.8		(530.6		)	7,691.8
Other Revenues:
Alternative Revenues (c)	(56.9		)	16.4		(17.7		)	—			—		(43.5		)	(101.7		)
Other Revenues (c)	—			78.4		—			26.8			4.5		(69.4		)	40.3
Total Other Revenues	(56.9		)	94.8		(17.7		)	26.8			4.5		(112.9		)	(61.4		)
Total Revenues	$	4,527.1		$	2,267.7	$	535.3		$	894.5		$	49.3	$	(643.5	)	$	7,630.4

(a) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing is $71 million. The remaining affiliated amounts are immaterial.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $399 million. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues.

	Six Months Ended June 30, 2018
	Vertically Integrated Utilities			Transmission and Distribution Utilities			AEP Transmission Holdco			Generation & Marketing		Corporate and Other		Reconciling Adjustments			AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	1,858.2		$	1,098.8		$	—		$	—	$	—	$	—		$	2,957.0
Commercial Revenues	1,059.9			614.4			—			—		—		—			1,674.3
Industrial Revenues	1,097.3			252.7			—			—		—		—			1,350.0
Other Retail Revenues	90.3			21.1			—			—		—		—			111.4
Total Retail Revenues (a)	4,105.7			1,987.0			—			—		—		—			6,092.7
Wholesale and Competitive Retail Revenues:
Generation Revenues (b)	462.3			—			—			298.3		—		(56.7		)	703.9
Transmission Revenues (c)	135.6			184.6			432.5			—		—		(279.1		)	473.6
Marketing, Competitive Retail and Renewable Revenues	—			—			—			641.1		—		—			641.1
Total Wholesale and Competitive Retail Revenues	597.9			184.6			432.5			939.4		—		(335.8		)	1,818.6
Other Revenues from Contracts with Customers (d)	81.5			95.2			10.4			2.3		43.3		(47.7		)	185.0
Total Revenues from Contracts with Customers	4,785.1			2,266.8			442.9			941.7		43.3		(383.5		)	8,096.3
Other Revenues:
Alternative Revenues (d)	(19.4		)	(10.4		)	(24.9		)	—		—		—			(54.7		)
Other Revenues (d)	(8.7		)	43.0			—			24.1		4.5		(43.0		)	19.9
Total Other Revenues	(28.1		)	32.6			(24.9		)	24.1		4.5		(43.0		)	(34.8		)
Total Revenues	$	4,757.0		$	2,299.4		$	418.0		$	965.8	$	47.8	$	(426.5	)	$	8,061.5

(a) 2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing is $52 million. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco is $297 million. The remaining affiliated amounts are immaterial.

(d) Amounts include affiliated and nonaffiliated revenues.

	Six Months Ended June 30, 2019
	AEP Texas		AEPTCo			APCo		I&M			OPCo		PSO			SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	262.9	$	—		$	629.0	$	360.6		$	759.9	$	287.7		$	280.8
Commercial Revenues	203.9		—			274.3		233.1			393.2		182.1			226.8
Industrial Revenues	66.6		—			292.1		273.2			166.8		154.0			164.9
Other Retail Revenues	15.2		—			38.0		3.5			6.7		38.2			4.4
Total Retail Revenues	548.6		—			1,233.4		870.4			1,326.6		662.0			676.9
Wholesale Revenues:
Generation Revenues (a)	—		—			129.7		225.3			—		14.4			102.0
Transmission Revenues (b)	184.3		518.9			51.4		12.4			28.3		25.3			48.0
Total Wholesale Revenues	184.3		518.9			181.1		237.7			28.3		39.7			150.0
Other Revenues from Contracts with Customers (c)	14.7		8.1			29.5		49.6			72.3		11.6			13.1
Total Revenues from Contracts with Customers	747.6		527.0			1,444.0		1,157.7			1,427.2		713.3			840.0
Other Revenues:
Alternative Revenues (d)	0.3		(16.6		)	4.6		(0.3		)	9.6		(32.4		)	(43.4		)
Other Revenues (d)	80.8		—			—		—			6.6		—			—
Total Other Revenues	81.1		(16.6		)	4.6		(0.3		)	16.2		(32.4		)	(43.4		)
Total Revenues	$	828.7	$	510.4		$	1,448.6	$	1,157.4		$	1,443.4	$	680.9		$	796.6

(a) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo is $64 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $393 million. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $38 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.

(d) Amounts include affiliated and nonaffiliated revenues.

	Six Months Ended June 30, 2018
	AEP Texas			AEPTCo (f)			APCo			I&M			OPCo			PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	274.8		$	—		$	696.3		$	352.0		$	824.9		$	310.6	$	298.3
Commercial Revenues	202.9			—			287.2			231.8			410.3			189.3		232.2
Industrial Revenues	62.7			—			299.8			277.8			191.1			146.4		164.4
Other Retail Revenues	14.3			—			38.4			3.7			6.5			40.7		4.2
Total Retail Revenues (a)	554.7			—			1,321.7			865.3			1,432.8			687.0		699.1
Wholesale Revenues:
Generation Revenues (b)	—			—			119.6			256.1			—			14.2		115.6
Transmission Revenues (c)	156.0			406.3			39.3			10.7			28.0			15.9		47.8
Total Wholesale Revenues	156.0			406.3			158.9			266.8			28.0			30.1		163.4
Other Revenues from Contracts with Customers (d)	14.3			8.5			26.3			48.6			81.2			9.1		11.4
Total Revenues from Contracts with Customers	725.0			414.8			1,506.9			1,180.7			1,542.0			726.2		873.9
Other Revenues:
Alternative Revenues (e)	(0.1		)	(23.0		)	(19.5		)	(5.5		)	(10.3		)	8.9		2.6
Other Revenues (e)	35.0			—			—			(8.7		)	8.0			—		—
Total Other Revenues	34.9			(23.0		)	(19.5		)	(14.2		)	(2.3		)	8.9		2.6
Total Revenues	$	759.9		$	391.8		$	1,487.4		$	1,166.5		$	1,539.7		$	735.1	$	876.5

(a) 2018 amounts have been revised to reflect the reclassification of certain customer accounts between Retail classes. This reclassification did not impact previously reported Total Retail Revenues. Management concluded that these prior period disclosure only errors were immaterial individually and in the aggregate.

(b) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo is $69 million primarily relating to the PPA with Kingsport. The remaining affiliated amounts are immaterial.

(c) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo is $241 million. The remaining affiliated amounts are immaterial.

(d) Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M is $41 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts are immaterial.

(e) Amounts include affiliated and nonaffiliated revenues.

(f) The amounts presented reflect the revisions made to AEPTCo’s previously issued financial statements. For additional details on revisions made to AEPTCo’s financial statements, see Note 1- Significant Accounting Matters.

Fixed Performance Obligations

The following table represents the Registrants’ remaining fixed performance obligations satisfied over time as of June 30, 2019. Fixed performance obligations primarily include wholesale transmission services, electricity sales for fixed amounts of energy and stand ready services into PJM’s RPM market. The Registrant Subsidiaries amounts shown in the table below include affiliated and nonaffiliated revenues.

Company	2019		2020-2021		2022-2023		After 2023		Total
	(in millions)
AEP	$	505.5	$	210.3	$	163.1	$	284.7	$	1,163.6
AEP Texas	193.5		—		—		—		193.5
AEPTCo	451.6		—		—		—		451.6
APCo	72.9		32.7		25.5		11.6		142.7
I&M	14.4		8.9		8.8		4.4		36.5
OPCo	35.6		7.5		—		—		43.1
PSO	8.6		—		—		—		8.6
SWEPCo	20.0		—		—		—		20.0

Contract Assets and Liabilities

Contract assets are recognized when the Registrants have a right to consideration that is conditional upon the occurrence of an event other than the passage of time, such as future performance under a contract. The Registrants did not have any material contract assets as of June 30, 2019 and December 31, 2018.

When the Registrants receive consideration, or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, they recognize a contract liability on the balance sheet in the amount of that consideration. Revenue for such consideration is subsequently recognized in the period or periods in which the remaining performance obligations in the contract are satisfied. The Registrants’ contract liabilities typically arise from services provided under joint use agreements for utility poles. The Registrants did not have any material contract liabilities as of June 30, 2019 and December 31, 2018.

Accounts Receivable from Contracts with Customers

Accounts receivable from contracts with customers are presented on the Registrants’ balance sheets within the Accounts Receivable - Customers line item. The Registrants’ balances for receivables from contracts that are not recognized in accordance with the accounting guidance for “Revenue from Contracts with Customers” included in Accounts Receivable - Customers were not material as of June 30, 2019 and December 31, 2018. See “Securitized Accounts Receivable - AEP Credit” section of Note 13 for additional information related to AEP Credit’s securitized accounts receivable.

The following table represents the amount of affiliated accounts receivable from contracts with customers included in Accounts Receivable - Affiliated Companies on the Registrant Subsidiaries’ balance sheets:

Company	June 30, 2019		December 31, 2018
	(in millions)
AEPTCo	$	82.8	$	58.6
APCo	40.4		52.5
I&M	14.5		35.3
OPCo	30.8		46.1
PSO	24.5		12.4
SWEPCo	45.9		16.3