Benefit Plans

9 Months Ended

Sep. 30, 2019

BENEFIT PLANS

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

AEP sponsors a qualified pension plan and two unfunded nonqualified pension plans. Substantially all AEP employees are covered by the qualified plan or both the qualified and a nonqualified pension plan. AEP also sponsors OPEB plans to provide health and life insurance benefits for retired employees.

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (credit) by Registrant for the plans:

AEP



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	23.8		$	24.4		$	2.4		$	2.9
Interest Cost	51.1			46.9			12.6			11.8
Expected Return on Plan Assets	(74.0		)	(72.6		)	(23.4		)	(25.6		)
Amortization of Prior Service Credit	—			—			(17.3		)	(17.3		)
Amortization of Net Actuarial Loss	14.4			21.3			5.5			2.7
Net Periodic Benefit Cost (Credit)	$	15.3		$	20.0		$	(20.2	)	$	(25.5	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	71.6		$	73.2		$	7.1		$	8.7
Interest Cost	153.3			140.8			37.9			35.5
Expected Return on Plan Assets	(222.0		)	(217.7		)	(70.3		)	(76.7		)
Amortization of Prior Service Credit	—			—			(51.8		)	(51.8		)
Amortization of Net Actuarial Loss	43.2			63.9			16.6			7.9
Net Periodic Benefit Cost (Credit)	$	46.1		$	60.2		$	(60.5	)	$	(76.4	)

AEP Texas



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	2.2		$	2.3		$	0.1		$	0.3
Interest Cost	4.4			4.0			1.0			0.9
Expected Return on Plan Assets	(6.5		)	(6.4		)	(1.9		)	(2.1		)
Amortization of Prior Service Credit	—			—			(1.5		)	(1.5		)
Amortization of Net Actuarial Loss	1.2			1.8			0.5			0.2
Net Periodic Benefit Cost (Credit)	$	1.3		$	1.7		$	(1.8	)	$	(2.2	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	6.5		$	6.9		$	0.5		$	0.7
Interest Cost	13.1			12.0			3.0			2.8
Expected Return on Plan Assets	(19.4		)	(19.2		)	(5.8		)	(6.4		)
Amortization of Prior Service Credit	—			—			(4.4		)	(4.4		)
Amortization of Net Actuarial Loss	3.7			5.4			1.4			0.6
Net Periodic Benefit Cost (Credit)	$	3.9		$	5.1		$	(5.3	)	$	(6.7	)

APCo



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	2.4		$	2.4		$	0.2		$	0.3
Interest Cost	6.3			5.8			2.2			2.1
Expected Return on Plan Assets	(9.4		)	(9.1		)	(3.7		)	(4.0		)
Amortization of Prior Service Credit	—			—			(2.5		)	(2.5		)
Amortization of Net Actuarial Loss	1.8			2.6			1.0			0.4
Net Periodic Benefit Cost (Credit)	$	1.1		$	1.7		$	(2.8	)	$	(3.7	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	7.1		$	7.0		$	0.7		$	0.8
Interest Cost	18.9			17.6			6.5			6.2
Expected Return on Plan Assets	(28.1		)	(27.4		)	(11.0		)	(12.0		)
Amortization of Prior Service Credit	—			—			(7.5		)	(7.5		)
Amortization of Net Actuarial Loss	5.3			7.9			2.8			1.4
Net Periodic Benefit Cost (Credit)	$	3.2		$	5.1		$	(8.5	)	$	(11.1	)

I&M



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	3.3		$	3.4		$	0.3		$	0.4
Interest Cost	6.0			5.6			1.5			1.4
Expected Return on Plan Assets	(9.1		)	(9.0		)	(2.8		)	(3.1		)
Amortization of Prior Service Credit	—			—			(2.4		)	(2.4		)
Amortization of Net Actuarial Loss	1.6			2.5			0.7			0.3
Net Periodic Benefit Cost (Credit)	$	1.8		$	2.5		$	(2.7	)	$	(3.4	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	10.0		$	10.2		$	1.0		$	1.2
Interest Cost	17.9			16.6			4.4			4.1
Expected Return on Plan Assets	(27.5		)	(26.8		)	(8.5		)	(9.3		)
Amortization of Prior Service Credit	—			—			(7.1		)	(7.1		)
Amortization of Net Actuarial Loss	4.9			7.4			2.0			0.9
Net Periodic Benefit Cost (Credit)	$	5.3		$	7.4		$	(8.2	)	$	(10.2	)

OPCo



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	1.9		$	2.0		$	0.2		$	0.2
Interest Cost	4.8			4.4			1.4			1.3
Expected Return on Plan Assets	(7.3		)	(7.2		)	(2.7		)	(2.9		)
Amortization of Prior Service Credit	—			—			(1.8		)	(1.7		)
Amortization of Net Actuarial Loss	1.3			2.0			0.6			0.3
Net Periodic Benefit Cost (Credit)	$	0.7		$	1.2		$	(2.3	)	$	(2.8	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	5.9		$	5.8		$	0.6		$	0.7
Interest Cost	14.3			13.3			4.1			3.9
Expected Return on Plan Assets	(22.0		)	(21.6		)	(8.1		)	(8.8		)
Amortization of Prior Service Credit	—			—			(5.2		)	(5.2		)
Amortization of Net Actuarial Loss	4.0			6.0			1.9			0.8
Net Periodic Benefit Cost (Credit)	$	2.2		$	3.5		$	(6.7	)	$	(8.6	)

PSO



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	1.6		$	1.7		$	0.2		$	0.1
Interest Cost	2.6			2.5			0.7			0.6
Expected Return on Plan Assets	(4.0		)	(4.0		)	(1.3		)	(1.3		)
Amortization of Prior Service Credit	—			—			(1.1		)	(1.1		)
Amortization of Net Actuarial Loss	0.7			1.1			0.3			0.1
Net Periodic Benefit Cost (Credit)	$	0.9		$	1.3		$	(1.2	)	$	(1.6	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	4.9		$	5.3		$	0.5		$	0.5
Interest Cost	7.9			7.4			2.0			1.8
Expected Return on Plan Assets	(12.2		)	(12.1		)	(3.9		)	(4.1		)
Amortization of Prior Service Credit	—			—			(3.2		)	(3.2		)
Amortization of Net Actuarial Loss	2.2			3.3			0.9			0.4
Net Periodic Benefit Cost (Credit)	$	2.8		$	3.9		$	(3.7	)	$	(4.6	)

SWEPCo



	Pension Plans						OPEB
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	2.1		$	2.4		$	0.2		$	0.2
Interest Cost	3.1			2.8			0.7			0.7
Expected Return on Plan Assets	(4.4		)	(4.4		)	(1.5		)	(1.6		)
Amortization of Prior Service Credit	—			—			(1.3		)	(1.3		)
Amortization of Net Actuarial Loss	0.9			1.3			0.4			0.2
Net Periodic Benefit Cost (Credit)	$	1.7		$	2.1		$	(1.5	)	$	(1.8	)



	Pension Plans						OPEB
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Service Cost	$	6.4		$	7.0		$	0.6		$	0.7
Interest Cost	9.3			8.5			2.3			2.1
Expected Return on Plan Assets	(13.3		)	(13.1		)	(4.5		)	(4.8		)
Amortization of Prior Service Credit	—			—			(3.9		)	(3.9		)
Amortization of Net Actuarial Loss	2.6			3.8			1.1			0.5
Net Periodic Benefit Cost (Credit)	$	5.0		$	6.2		$	(4.4	)	$	(5.4	)