Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer

14. 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 September 30, 2020
	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	$	1,053.3	$	594.8	$	—	$	—	$	—	$	—	$	1,648.1
Commercial Revenues	559.7		259.2		—		—		—		—		818.9
Industrial Revenues	504.5		93.9		—		—		—		(0.1)		598.3
Other Retail Revenues	41.4		10.0		—		—		—		—		51.4
Total Retail Revenues	2,158.9		957.9		—		—		—		(0.1)		3,116.7
Wholesale and Competitive Retail Revenues:
Generation Revenues	158.4		—		—		30.5		—		—		188.9
Transmission Revenues (a)	84.4		119.1		317.7		—		—		(276.9)		244.3
Renewable Generation Revenues (b)	—		—		—		15.8		—		(0.3)		15.5
Retail, Trading and Marketing Revenues (c)	—		—		—		447.5		0.9		(24.8)		423.6
Total Wholesale and Competitive Retail Revenues	242.8		119.1		317.7		493.8		0.9		(302.0)		872.3
Other Revenues from Contracts with Customers (b)	34.1		42.8		2.4		0.7		33.9		(43.7)		70.2
Total Revenues from Contracts with Customers	2,435.8		1,119.8		320.1		494.5		34.8		(345.8)		4,059.2
Other Revenues:
Alternative Revenues (b)	(1.0)		9.3		(2.2)		—		—		6.6		12.7
Other Revenues (b)	—		36.2		—		(4.5)		(2.2)		(35.0)		(5.5)
Total Other Revenues	(1.0)		45.5		(2.2)		(4.5)		(2.2)		(28.4)		7.2
Total Revenues	$	2,434.8	$	1,165.3	$	317.9	$	490.0	$	32.6	$	(374.2)	$	4,066.4

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $246 million. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $19 million. The remaining affiliated amounts were immaterial.

	Three Months Ended September 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	$	1,060.2	$	588.0	$	—	$	—	$	—	$	—	$	1,648.2
Commercial Revenues	612.5		290.9		—		—		—		—		903.4
Industrial Revenues	566.0		99.3		—		—		—		1.5		666.8
Other Retail Revenues	49.2		10.6		—		—		—		—		59.8
Total Retail Revenues	2,287.9		988.8		—		—		—		1.5		3,278.2
Wholesale and Competitive Retail Revenues:
Generation Revenues (a)	231.3		—		—		77.1		—		(34.2)		274.2
Transmission Revenues (b)	77.8		110.9		269.4		—		—		(217.2)		240.9
Renewable Generation Revenues (c)	—		—		—		20.1		—		—		20.1
Retail, Trading and Marketing Revenues (c)	—		—		—		395.3		—		0.5		395.8
Total Wholesale and Competitive Retail Revenues	309.1		110.9		269.4		492.5		—		(250.9)		931.0
Other Revenues from Contracts with Customers (c)	47.3		42.9		4.5		14.8		35.6		(42.2)		102.9
Total Revenues from Contracts with Customers	2,644.3		1,142.6		273.9		507.3		35.6		(291.6)		4,312.1
Other Revenues:
Alternative Revenues (c)	1.2		5.1		(0.9)		—		—		(16.8)		(11.4)
Other Revenues (c)	—		38.9		—		26.4		(11.2)		(39.8)		14.3
Total Other Revenues	1.2		44.0		(0.9)		26.4		(11.2)		(56.6)		2.9
Total Revenues	$	2,645.5	$	1,186.6	$	273.0	$	533.7	$	24.4	$	(348.2)	$	4,315.0

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

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $197 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues.

	Three Months Ended September 30, 2020
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	165.3	$	—	$	324.2	$	222.6	$	429.4	$	195.8	$	219.4
Commercial Revenues	78.0		—		138.4		135.8		181.2		94.4		135.0
Industrial Revenues	24.9		—		139.4		139.7		69.1		55.0		83.8
Other Retail Revenues	6.9		—		17.6		1.6		3.1		18.4		2.3
Total Retail Revenues	275.1		—		619.6		499.7		682.8		363.6		440.5
Wholesale Revenues:
Generation Revenues (a)	—		—		70.3		61.5		—		5.8		42.3
Transmission Revenues (b)	101.8		305.7		30.8		7.4		17.2		8.5		28.7
Total Wholesale Revenues	101.8		305.7		101.1		68.9		17.2		14.3		71.0
Other Revenues from Contracts with Customers (c)	15.2		3.0		16.1		17.7		27.6		4.8		5.6
Total Revenues from Contracts with Customers	392.1		308.7		736.8		586.3		727.6		382.7		517.1
Other Revenues:
Alternative Revenues (d)	(0.7)		(4.6)		(1.1)		0.4		10.0		(0.5)		0.2
Other Revenues (d)	40.6		—		—		—		3.4		—		—
Total Other Revenues	39.9		(4.6)		(1.1)		0.4		13.4		(0.5)		0.2
Total Revenues	$	432.0	$	304.1	$	735.7	$	586.7	$	741.0	$	382.2	$	517.3

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $28 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $243 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $15 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues.

	Three Months Ended September 30, 2019
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	192.0	$	—	$	315.7	$	198.2	$	395.6	$	231.9	$	222.9
Commercial Revenues	110.6		—		147.2		138.3		180.5		122.2		144.3
Industrial Revenues	32.2		—		152.2		138.7		67.1		84.1		92.3
Other Retail Revenues	7.5		—		18.5		1.9		3.1		24.9		2.3
Total Retail Revenues	342.3		—		633.6		477.1		646.3		463.1		461.8
Wholesale Revenues:
Generation Revenues (a)	—		—		70.4		102.1		—		21.1		50.7
Transmission Revenues (b)	97.7		256.4		26.2		6.4		13.7		(3.4)		30.0
Total Wholesale Revenues	97.7		256.4		96.6		108.5		13.7		17.7		80.7
Other Revenues from Contracts with Customers (c)	8.2		4.5		18.7		26.6		41.0		5.1		7.0
Total Revenues from Contracts with Customers	448.2		260.9		748.9		612.2		701.0		485.9		549.5
Other Revenues:
Alternative Revenues (d)	(0.7)		(1.2)		6.6		(1.1)		12.4		7.1		(4.0)
Other Revenues (d)	41.8		—		—		—		(2.8)		—		—
Total Other Revenues	41.1		(1.2)		6.6		(1.1)		9.6		7.1		(4.0)
Total Revenues	$	489.3	$	259.7	$	755.5	$	611.1	$	710.6	$	493.0	$	545.5

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $32 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $194 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $20 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues.

	Nine Months Ended September 30, 2020
	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	$	2,789.1	$	1,610.6	$	—	$	—	$	—	$	—	$	4,399.7
Commercial Revenues	1,523.6		792.4		—		—		—		—		2,316.0
Industrial Revenues	1,508.7		290.4		—		—		—		(0.5)		1,798.6
Other Retail Revenues	118.2		32.1		—		—		—		—		150.3
Total Retail Revenues	5,939.6		2,725.5		—		—		—		(0.5)		8,664.6
Wholesale and Competitive Retail Revenues:
Generation Revenues	447.4		—		—		106.1		—		—		553.5
Transmission Revenues (a)	248.4		341.6		937.7		—		—		(741.7)		786.0
Renewable Generation Revenues (b)	—		—		—		50.7		—		(1.2)		49.5
Retail, Trading and Marketing Revenues (c)	—		—		—		1,133.8		(5.7)		(80.7)		1,047.4
Total Wholesale and Competitive Retail Revenues	695.8		341.6		937.7		1,290.6		(5.7)		(823.6)		2,436.4
Other Revenues from Contracts with Customers (b)	124.1		112.3		17.5		1.7		84.4		(115.7)		224.3
Total Revenues from Contracts with Customers	6,759.5		3,179.4		955.2		1,292.3		78.7		(939.8)		11,325.3
Other Revenues:
Alternative Revenues (b)	(6.0)		49.2		(77.4)		—		—		3.5		(30.7)
Other Revenues (b)	—		78.1		—		13.2		(6.7)		(71.3)		13.3
Total Other Revenues	(6.0)		127.3		(77.4)		13.2		(6.7)		(67.8)		(17.4)
Total Revenues	$	6,753.5	$	3,306.7	$	877.8	$	1,305.5	$	72.0	$	(1,007.6)	$	11,307.9

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $725 million. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $81 million. The remaining affiliated amounts were immaterial.

	Nine Months Ended September 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	$	2,797.6	$	1,609.1	$	—	$	—	$	—	$	—	$	4,406.7
Commercial Revenues	1,641.2		889.4		—		—		—		—		2,530.6
Industrial Revenues	1,647.3		332.6		—		—		—		—		1,979.9
Other Retail Revenues	136.1		32.8		—		—		—		—		168.9
Total Retail Revenues	6,222.2		2,863.9		—		—		—		—		9,086.1
Wholesale and Competitive Retail Revenues:
Generation Revenues (a)	661.9		—		—		282.0		—		(105.5)		838.4
Transmission Revenues (b)	215.4		324.0		814.3		—		—		(603.6)		750.1
Renewable Generation Revenues (c)	—		—		—		39.0		—		0.5		39.5
Retail, Trading and Marketing Revenues (c)	—		—		—		1,049.5		—		—		1,049.5
Total Wholesale and Competitive Retail Revenues	877.3		324.0		814.3		1,370.5		—		(708.6)		2,677.5
Other Revenues from Contracts with Customers (c)	128.8		127.6		12.6		4.5		80.4		(113.6)		240.3
Total Revenues from Contracts with Customers	7,228.3		3,315.5		826.9		1,375.0		80.4		(822.2)		12,003.9
Other Revenues:
Alternative Revenues (c)	(55.7)		21.5		(18.6)		—		—		(60.3)		(113.1)
Other Revenues (c)	—		117.3		—		53.2		(6.7)		(109.2)		54.6
Total Other Revenues	(55.7)		138.8		(18.6)		53.2		(6.7)		(169.5)		(58.5)
Total Revenues	$	7,172.6	$	3,454.3	$	808.3	$	1,428.2	$	73.7	$	(991.7)	$	11,945.4

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $105 million. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $596 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues.

	Nine Months Ended September 30, 2020
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	447.8	$	—	$	954.4	$	610.8	$	1,162.6	$	463.5	$	498.7
Commercial Revenues	285.2		—		390.6		376.0		507.3		247.8		351.2
Industrial Revenues	91.4		—		415.0		408.2		199.1		170.8		245.9
Other Retail Revenues	22.3		—		50.9		5.0		9.8		51.2		6.6
Total Retail Revenues	846.7		—		1,810.9		1,400.0		1,878.8		933.3		1,102.4
Wholesale Revenues:
Generation Revenues (a)	—		—		185.3		215.5		—		9.9		106.7
Transmission Revenues (b)	290.4		902.6		91.5		22.1		51.1		20.2		87.5
Total Wholesale Revenues	290.4		902.6		276.8		237.6		51.1		30.1		194.2
Other Revenues from Contracts with Customers (c)	33.4		17.5		46.8		60.6		78.9		23.2		21.1
Total Revenues from Contracts with Customers	1,170.5		920.1		2,134.5		1,698.2		2,008.8		986.6		1,317.7
Other Revenues:
Alternative Revenues (d)	(0.3)		(82.3)		(11.9)		5.4		49.6		1.5		0.5
Other Revenues (d)	86.9		—		—		—		13.3		—		—
Total Other Revenues	86.6		(82.3)		(11.9)		5.4		62.9		1.5		0.5
Total Revenues	$	1,257.1	$	837.8	$	2,122.6	$	1,703.6	$	2,071.7	$	988.1	$	1,318.2

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $85 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $715 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $49 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues.

	Nine Months Ended September 30, 2019
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	454.9	$	—	$	944.7	$	558.8	$	1,155.5	$	519.6	$	503.7
Commercial Revenues	314.5		—		421.5		371.4		573.7		304.3		371.1
Industrial Revenues	98.8		—		444.3		411.9		233.9		238.1		257.2
Other Retail Revenues	22.7		—		56.5		5.4		9.8		63.1		6.7
Total Retail Revenues	890.9		—		1,867.0		1,347.5		1,972.9		1,125.1		1,138.7
Wholesale Revenues:
Generation Revenues (a)	—		—		200.1		327.4		—		35.5		152.7
Transmission Revenues (b)	282.0		775.3		77.6		18.8		42.0		21.9		78.0
Total Wholesale Revenues	282.0		775.3		277.7		346.2		42.0		57.4		230.7
Other Revenues from Contracts with Customers (c)	22.9		12.6		48.2		76.2		113.3		16.7		20.1
Total Revenues from Contracts with Customers	1,195.8		787.9		2,192.9		1,769.9		2,128.2		1,199.2		1,389.5
Other Revenues:
Alternative Revenues (d)	(0.4)		(17.8)		11.2		(1.4)		22.0		(25.3)		(47.4)
Other Revenues (d)	122.6		—		—		—		3.8		—		—
Total Other Revenues	122.2		(17.8)		11.2		(1.4)		25.8		(25.3)		(47.4)
Total Revenues	$	1,318.0	$	770.1	$	2,204.1	$	1,768.5	$	2,154.0	$	1,173.9	$	1,342.1

(a)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $96 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $587 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $57 million primarily relating to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues.

Fixed Performance Obligations

The following table represents the Registrants’ remaining fixed performance obligations satisfied over time as of September 30, 2020. 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	2020		2021-2022		2023-2024		After 2024		Total
	(in millions)
AEP	$	263.8	$	188.3	$	164.2	$	223.4	$	839.7
AEP Texas	108.2		—		—		—		108.2
AEPTCo	274.8		—		—		—		274.8
APCo	40.1		33.1		26.6		11.6		111.4
I&M	8.6		10.9		8.8		4.5		32.8
OPCo	16.5		5.3		—		—		21.8
PSO	3.8		—		—		—		3.8
SWEPCo	10.3		—		—		—		10.3

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 material contract assets as of September 30, 2020 and December 31, 2019.

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 material contract liabilities as of September 30, 2020 and December 31, 2019.

Accounts Receivable from Contracts with Customers

Accounts receivable from contracts with customers are presented on the Registrant Subsidiaries’ balance sheets within the Accounts Receivable - Customers line item. The Registrant Subsidiaries’ 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 September 30, 2020 and December 31, 2019. See “Securitized Accounts Receivable - AEP Credit” section of Note 12 for additional information.

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	September 30, 2020		December 31, 2019
	(in millions)
AEPTCo	$	79.9	$	65.9
APCo	49.3		47.3
I&M	30.5		37.1
OPCo	36.5		33.9
PSO	11.0		9.7
SWEPCo	18.4		17.6