Leases (Tables)

12 Months Ended

Dec. 31, 2020

Lease Rental Costs

Year Ended December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Cost	$	279.6	$	17.4	$	2.6	$	19.1	$	101.5	$	17.1	$	7.8	$	9.4
Finance Lease Cost:
Amortization of Right-of-Use Assets	61.9		6.3		—		7.4		6.5		4.7		3.5		10.9
Interest on Lease Liabilities	15.4		1.5		—		2.7		3.1		0.9		0.7		2.2
Total Lease Rental Costs (a)	$	356.9	$	25.2	$	2.6	$	29.2	$	111.1	$	22.7	$	12.0	$	22.5

Year Ended December 31, 2019	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Cost	$	286.0	$	16.5	$	2.5	$	19.5	$	93.1	$	18.0	$	6.8	$	8.0
Finance Lease Cost:
Amortization of Right-of-Use Assets	70.8		5.1		0.1		6.7		5.7		3.5		3.1		11.0
Interest on Lease Liabilities	16.4		1.4		—		2.9		2.9		0.7		0.6		2.9
Total Lease Rental Costs (a)	$	373.2	$	23.0	$	2.6	$	29.1	$	101.7	$	22.2	$	10.5	$	21.9

Year Ended December 31, 2018	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Cost	$	245.0	$	13.6	$	2.7	$	18.2	$	89.2	$	10.7	$	5.7	$	6.5
Finance Lease Cost:
Amortization of Right-of-Use Assets	62.4		4.8		0.1		7.0		6.6		3.9		3.2		11.2
Interest on Lease Liabilities	16.4		1.2		—		3.0		3.3		0.5		0.4		3.2
Total Lease Rental Costs	$	323.8	$	19.6	$	2.8	$	28.2	$	99.1	$	15.1	$	9.3	$	20.9

(a)Excludes variable and short-term lease costs, which were immaterial for the twelve months ended December 31, 2020 and December 31, 2019.

^[1]

Supplemental Balance Sheet Information Related to Leases

December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
Weighted-Average Remaining Lease Term (years):
Operating Leases	5.30		6.51		2.01		6.27		3.50		7.44		7.03		7.54
Finance Leases	5.43		6.07		0.00		5.75		5.79		5.90		6.16		4.95
Weighted-Average Discount Rate:
Operating Leases	3.44	%	3.60	%	1.51	%	3.48	%	3.42	%	3.60	%	3.39	%	3.45	%
Finance Leases	5.68	%	4.39	%	—	%	7.33	%	8.29	%	4.25	%	4.35	%	4.77	%

December 31, 2019	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
Weighted-Average Remaining Lease Term (years):
Operating Leases	5.23		6.93		2.25		6.28		3.91		7.94		7.07		6.64
Finance Leases	5.85		6.69		0.25		6.12		6.55		6.49		6.23		5.16
Weighted-Average Discount Rate:
Operating Leases	3.60	%	3.77	%	3.14	%	3.64	%	3.45	%	3.76	%	3.64	%	3.76	%
Finance Leases	5.98	%	4.62	%	9.33	%	8.08	%	8.47	%	4.54	%	4.62	%	5.01	%

Year Ended December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating Cash Flows Used for Operating Leases	$	280.3	$	17.1	$	2.6	$	19.2	$	102.2	$	16.9	$	7.7	$	9.4
Operating Cash Flows Used for Finance Leases	15.4		1.5		—		2.7		3.1		0.9		0.7		2.2
Financing Cash Flows Used for Finance Leases	61.7		6.3		—		7.4		6.5		4.7		3.5		10.9
Non-cash Acquisitions Under Operating Leases	$	161.7	$	15.8	$	1.8	$	16.2	$	18.1	$	18.1	$	12.3	$	18.4

Year Ended December 31, 2019	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating Cash Flows Used for Operating Leases	$	284.7	$	15.3	$	2.4	$	19.0	$	94.3	$	18.0	$	6.7	$	7.9
Operating Cash Flows Used for Finance Leases	16.4		1.4		—		2.9		3.1		0.7		0.6		3.0
Financing Cash Flows Used for Finance Leases	70.7		5.1		—		6.7		5.7		3.5		3.1		11.0
Non-cash Acquisitions Under Operating Leases	$	125.0	$	13.8	$	0.6	$	10.2	$	18.7	$	35.4	$	8.2	$	11.4

Property, Plant and Equipment and Related Obligations Under Finance Leases

December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Property, Plant and Equipment Under Finance Leases:
Generation	$	138.2	$	—	$	—	$	42.8	$	28.8	$	—	$	0.7	$	37.7
Other Property, Plant and Equipment	322.8		49.7		—		20.3		40.2		31.4		23.0		52.4
Total Property, Plant and Equipment	461.0		49.7		—		63.1		69.0		31.4		23.7		90.1
Accumulated Amortization	176.8		16.6		—		21.4		27.3		9.8		8.7		36.5
Net Property, Plant and Equipment Under Finance Leases	$	284.2	$	33.1	$	—	$	41.7	$	41.7	$	21.6	$	15.0	$	53.6
Obligations Under Finance Leases:
Noncurrent Liability	$	231.0	$	26.8	$	—	$	34.4	$	35.3	$	16.9	$	11.9	$	44.6
Liability Due Within One Year	58.1		6.3		—		7.3		6.4		4.7		3.1		10.7
Total Obligations Under Finance Leases	$	289.1	$	33.1	$	—	$	41.7	$	41.7	$	21.6	$	15.0	$	55.3

December 31, 2019	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Property, Plant and Equipment Under Finance Leases:
Generation	$	131.6	$	—	$	—	$	39.9	$	28.8	$	—	$	0.6	$	34.1
Other Property, Plant and Equipment	323.0		45.9		0.2		18.9		39.3		27.3		21.6		51.6
Total Property, Plant and Equipment	454.6		45.9		0.2		58.8		68.1		27.3		22.2		85.7
Accumulated Amortization	151.5		11.8		0.2		17.0		23.0		7.2		7.1		28.4
Net Property, Plant and Equipment Under Finance Leases	$	303.1	$	34.1	$	—	$	41.8	$	45.1	$	20.1	$	15.1	$	57.3
Obligations Under Finance Leases:
Noncurrent Liability	$	249.2	$	28.2	$	—	$	35.0	$	38.8	$	16.2	$	11.9	$	47.1
Liability Due Within One Year	57.6		5.9		—		6.8		6.3		3.9		3.2		10.5
Total Obligations Under Finance Leases	$	306.8	$	34.1	$	—	$	41.8	$	45.1	$	20.1	$	15.1	$	57.6

Operating Lease Assets and Related Obligations

December 31, 2020	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Assets	$	866.4	$	84.1	$	1.6	$	78.8	$	218.1	$	92.0	$	42.6	$	48.5
Obligations Under Operating Leases:
Noncurrent Liability	$	638.4	$	71.0	$	0.4	$	64.4	$	135.9	$	79.5	$	36.2	$	44.1
Liability Due Within One Year	241.3		14.5		1.2		14.9		85.6		13.1		6.5		7.9
Total Obligations Under Operating Leases	$	879.7	$	85.5	$	1.6	$	79.3	$	221.5	$	92.6	$	42.7	$	52.0

December 31, 2019	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Operating Lease Assets	$	957.4	$	81.8	$	3.8	$	78.5	$	294.9	$	88.0	$	36.8	$	40.5
Obligations Under Operating Leases:
Noncurrent Liability	$	734.6	$	71.1	$	1.9	$	64.0	$	211.6	$	76.0	$	31.0	$	34.7
Liability Due Within One Year	234.1		12.0		2.1		15.2		87.3		12.5		5.8		6.5
Total Obligations Under Operating Leases	$	968.7	$	83.1	$	4.0	$	79.2	$	298.9	$	88.5	$	36.8	$	41.2

Finance Lease Liabilities Rolling Future Minimum Lease Payments

Finance Leases	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
2021	$	72.2	$	7.6	$	—	$	9.9	$	9.3	$	5.5	$	3.6	$	13.1
2022	64.0		6.9		—		9.4		8.6		4.6		3.1		11.8
2023	56.2		6.2		—		8.7		7.9		3.9		2.7		10.9
2024	63.5		5.4		—		8.1		11.1		3.3		2.3		15.3
2025	32.7		4.0		—		7.0		5.5		2.2		1.6		5.7
Later Years	48.9		7.8		—		6.4		12.2		4.9		3.8		5.8
Total Future Minimum Lease Payments	337.5		37.9		—		49.5		54.6		24.4		17.1		62.6
Less: Imputed Interest	48.4		4.8		—		7.8		12.9		2.8		2.1		7.3
Estimated Present Value of Future Minimum Lease Payments	$	289.1	$	33.1	$	—	$	41.7	$	41.7	$	21.6	$	15.0	$	55.3

Finance Leases	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
2020	$	72.7	$	7.3	$	—	$	9.6	$	9.4	$	4.7	$	3.8	$	12.9
2021	64.9		6.7		—		8.9		8.7		4.3		3.2		11.9
2022	56.4		6.0		—		8.2		8.0		3.4		2.6		10.6
2023	49.6		5.4		—		7.7		7.5		2.8		2.3		9.8
2024	57.4		4.6		—		7.1		10.8		2.4		1.8		14.2
Later Years	64.4		9.8		—		9.8		16.4		5.7		3.8		6.8
Total Future Minimum Lease Payments	365.4		39.8		—		51.3		60.8		23.3		17.5		66.2
Less: Imputed Interest	58.6		5.7		—		9.5		15.7		3.2		2.4		8.6
Estimated Present Value of Future Minimum Lease Payments	$	306.8	$	34.1	$	—	$	41.8	$	45.1	$	20.1	$	15.1	$	57.6

Operating Lease Liabilities Rolling Future Minimum Lease Payments

Operating Leases	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
2021	$	270.8	$	17.5	$	1.2	$	17.7	$	92.5	$	16.6	$	7.9	$	10.1
2022	263.3		16.4		0.2		17.0		92.5		16.0		7.6		9.6
2023	94.2		14.8		0.1		14.2		11.4		14.9		7.3		8.4
2024	81.6		13.3		0.1		11.3		10.0		13.2		6.5		6.9
2025	68.0		10.9		—		8.5		8.9		11.5		5.4		5.8
Later Years	193.0		23.9		—		20.0		21.8		34.0		13.3		17.4
Total Future Minimum Lease Payments	970.9		96.8		1.6		88.7		237.1		106.2		48.0		58.2
Less: Imputed Interest	91.2		11.3		—		9.4		15.6		13.6		5.3		6.2
Estimated Present Value of Future Minimum Lease Payments	$	879.7	$	85.5	$	1.6	$	79.3	$	221.5	$	92.6	$	42.7	$	52.0

Operating Leases	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
2020	$	269.9	$	16.0	$	2.2	$	18.3	$	97.0	$	16.2	$	7.3	$	8.6
2021	253.6		15.3		1.2		15.7		92.9		14.2		6.4		8.2
2022	245.6		14.2		0.6		14.7		92.8		13.5		6.0		7.6
2023	74.8		13.0		0.1		11.9		10.1		12.3		5.6		6.4
2024	62.0		11.4		—		9.0		8.6		10.7		4.8		5.0
Later Years	169.7		26.0		—		20.0		21.0		36.5		12.0		11.8
Total Future Minimum Lease Payments	1,075.6		95.9		4.1		89.6		322.4		103.4		42.1		47.6
Less: Imputed Interest	106.9		12.8		0.1		10.4		23.5		14.9		5.3		6.4
Estimated Present Value of Future Minimum Lease Payments	$	968.7	$	83.1	$	4.0	$	79.2	$	298.9	$	88.5	$	36.8	$	41.2

Maximum Potential Loss

Company	Maximum Potential Loss
	(in millions)
AEP	$	50.3
AEP Texas	11.7
APCo	6.6
I&M	4.4
OPCo	8.1
PSO	4.8
SWEPCo	5.4

Future Minimum Lease Payments

Future Minimum Lease Payments	AEP (a)		I&M
	(in millions)
2021	$	147.8	$	73.9
2022	147.6		73.8
Total Future Minimum Lease Payments	$	295.4	$	147.7

(a) AEP’s future minimum lease payments include equal shares from AEGCo and I&M.

[1] Excludes variable and short-term lease costs, which were immaterial for the twelve months ended December 31, 2020 and December 31, 2019.