Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Book Values and Fair Values of Long-term Debt

	June 30, 2021				December 31, 2020
Company	Book Value		Fair Value		Book Value		Fair Value
	(in millions)
AEP (a)	$	33,117.8	$	37,826.2	$	31,072.5	$	37,457.0
AEP Texas	5,226.0		5,809.5		4,820.4		5,682.6
AEPTCo	3,949.3		4,667.9		3,948.5		4,984.3
APCo	4,949.8		6,129.7		4,834.1		6,391.8
I&M	3,255.0		3,850.6		3,029.9		3,775.3
OPCo	2,876.8		3,419.0		2,430.2		3,154.9
PSO	1,623.8		1,883.6		1,373.8		1,732.1
SWEPCo	3,130.7		3,563.5		2,636.4		3,210.1

(a)The fair value amounts include debt related to AEP’s Equity Units and had a fair value of $1.7 billion and $1.7 billion as of June 30, 2021 and December 31, 2020, respectively. See “Equity Units” section of Note 12 for additional information.

Other Temporary Investments

	June 30, 2021
			Gross		Gross
			Unrealized		Unrealized		Fair
Other Temporary Investments	Cost		Gains		Losses		Value
	(in millions)
Restricted Cash and Other Cash Deposits (a)	$	80.2	$	—	$	—	$	80.2
Fixed Income Securities – Mutual Funds (b)	129.0		2.1		—		131.1
Equity Securities – Mutual Funds	22.7		34.7		—		57.4
Total Other Temporary Investments	$	231.9	$	36.8	$	—	$	268.7

	December 31, 2020
			Gross		Gross
			Unrealized		Unrealized		Fair
Other Temporary Investments	Cost		Gains		Losses		Value
	(in millions)
Restricted Cash and Other Cash Deposits (a)	$	68.3	$	—	$	—	$	68.3
Fixed Income Securities – Mutual Funds (b)	120.7		2.8		—		123.5
Equity Securities – Mutual Funds	25.9		28.7		—		54.6
Total Other Temporary Investments	$	214.9	$	31.5	$	—	$	246.4

(a)Primarily represents amounts held for the repayment of debt.

(b)Primarily short and intermediate maturities which may be sold and do not contain maturity dates.

Debt and Equity Securities Within Other Temporary Investments

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in millions)
Proceeds from Investment Sales	$	3.6	$	7.6	$	9.1	$	30.8
Purchases of Investments	12.4		10.3		13.1		17.0
Gross Realized Gains on Investment Sales	1.1		0.2		1.2		2.2
Gross Realized Losses on Investment Sales	—		0.1		—		0.2

Nuclear Trust Fund Investments

	June 30, 2021						December 31, 2020
			Gross		Other-Than-				Gross		Other-Than-
	Fair		Unrealized		Temporary		Fair		Unrealized		Temporary
	Value		Gains		Impairments		Value		Gains		Impairments
	(in millions)
Cash and Cash Equivalents	$	35.6	$	—	$	—	$	25.8	$	—	$	—
Fixed Income Securities:
United States Government	1,155.8		68.9		(12.5)		1,025.6		98.5		(7.1)
Corporate Debt	87.3		7.1		(2.6)		86.3		9.6		(1.7)
State and Local Government	58.9		0.2		(0.6)		114.3		0.9		(0.4)
Subtotal Fixed Income Securities	1,302.0		76.2		(15.7)		1,226.2		109.0		(9.2)
Equity Securities - Domestic (a)	2,274.8		1,648.2		—		2,054.7		1,400.8		—
Spent Nuclear Fuel and Decommissioning Trusts	$	3,612.4	$	1,724.4	$	(15.7)	$	3,306.7	$	1,509.8	$	(9.2)

(a)Amount reported as Gross Unrealized Gains includes unrealized gains of $1.7 billion and $1.4 billion and unrealized losses of $3 million and $9 million as of June 30, 2021 and December 31, 2020, respectively.

Securities Activity Within the Decommissioning and SNF Trusts

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in millions)
Proceeds from Investment Sales	$	802.7	$	328.1	$	1,122.7	$	940.5
Purchases of Investments	812.8		345.4		1,149.7		971.4
Gross Realized Gains on Investment Sales	83.3		11.1		88.7		22.0
Gross Realized Losses on Investment Sales	1.3		7.7		5.5		24.7

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts

	Fair Value of Fixed
	Income Securities
	(in millions)
Within 1 year	$	331.4
After 1 year through 5 years	415.7
After 5 years through 10 years	263.0
After 10 years	291.9
Total	$	1,302.0

Fair Value, Assets and Liabilities Measured on Recurring Basis

AEP

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Other Temporary Investments
Restricted Cash and Other Cash Deposits (a)	$	59.1	$	—	$	—	$	21.1	$	80.2
Fixed Income Securities – Mutual Funds	131.1		—		—		—		131.1
Equity Securities – Mutual Funds (b)	57.4		—		—		—		57.4
Total Other Temporary Investments	247.6		—		—		21.1		268.7
Risk Management Assets
Risk Management Commodity Contracts (c) (d)	4.8		478.1		224.3		(400.1)		307.1
Cash Flow Hedges:
Commodity Hedges (c)	—		158.7		16.9		(29.9)		145.7
Fair Value Hedges	—		3.2		—		—		3.2
Total Risk Management Assets	4.8		640.0		241.2		(430.0)		456.0
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)	28.0		—		—		7.6		35.6
Fixed Income Securities:
United States Government	—		1,155.8		—		—		1,155.8
Corporate Debt	—		87.3		—		—		87.3
State and Local Government	—		58.9		—		—		58.9
Subtotal Fixed Income Securities	—		1,302.0		—		—		1,302.0
Equity Securities – Domestic (b)	2,274.8		—		—		—		2,274.8
Total Spent Nuclear Fuel and Decommissioning Trusts	2,302.8		1,302.0		—		7.6		3,612.4
Other Investments (h)	—		72.5		—		—		72.5
Total Assets	$	2,555.2	$	2,014.5	$	241.2	$	(401.3)	$	4,409.6
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (d)	$	2.5	$	395.2	$	139.1	$	(307.1)	$	229.7
Cash Flow Hedges:
Commodity Hedges (c)	—		35.0		0.9		(29.9)		6.0
Fair Value Hedges	—		28.4		—		—		28.4
Total Risk Management Liabilities	$	2.5	$	458.6	$	140.0	$	(337.0)	$	264.1

AEP

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Other Temporary Investments
Restricted Cash and Other Cash Deposits (a)	$	57.8	$	—	$	—	$	10.5	$	68.3
Fixed Income Securities – Mutual Funds	123.5		—		—		—		123.5
Equity Securities – Mutual Funds (b)	54.6		—		—		—		54.6
Total Other Temporary Investments	235.9		—		—		10.5		246.4
Risk Management Assets
Risk Management Commodity Contracts (c) (f)	0.9		258.8		252.4		(190.0)		322.1
Cash Flow Hedges:
Commodity Hedges (c)	—		34.4		3.9		(28.5)		9.8
Interest Rate Hedges	—		2.4		—		—		2.4
Fair Value Hedges	—		2.6		—		—		2.6
Total Risk Management Assets	0.9		298.2		256.3		(218.5)		336.9
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)	16.8		—		—		9.0		25.8
Fixed Income Securities:
United States Government	—		1,025.6		—		—		1,025.6
Corporate Debt	—		86.3		—		—		86.3
State and Local Government	—		114.3		—		—		114.3
Subtotal Fixed Income Securities	—		1,226.2		—		—		1,226.2
Equity Securities – Domestic (b)	2,054.7		—		—		—		2,054.7
Total Spent Nuclear Fuel and Decommissioning Trusts	2,071.5		1,226.2		—		9.0		3,306.7
Other Investments (h)	—		—		31.8		—		31.8
Total Assets	$	2,308.3	$	1,524.4	$	288.1	$	(199.0)	$	3,921.8
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (f)	$	0.9	$	244.2	$	167.2	$	(193.4)	$	218.9
Cash Flow Hedges:
Commodity Hedges (c)	—		106.1		7.6		(28.5)		85.2
Interest Rate Hedges	—		3.4		—		—		3.4
Fair Value Hedges	—		4.1		—		—		4.1
Total Risk Management Liabilities	$	0.9	$	357.8	$	174.8	$	(221.9)	$	311.6

AEP Texas

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Restricted Cash for Securitized Funding	$	27.9	$	—	$	—	$	—	$	27.9
Risk Management Assets
Risk Management Commodity Contracts (c)	—		1.1		—		(1.1)		—
Total Assets	$	27.9	$	1.1	$	—	$	(1.1)	$	27.9

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Restricted Cash for Securitized Funding	$	28.7	$	—	$	—	$	—	$	28.7
Risk Management Assets
Risk Management Commodity Contracts (c)	—		0.4		—		(0.4)		—
Total Assets	$	28.7	$	0.4	$	—	$	(0.4)	$	28.7

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Restricted Cash for Securitized Funding	$	19.1			$	—	$	—	$	19.1
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	—		27.0		37.3		(27.2)		37.1
Total Assets	$	19.1	$	27.0	$	37.3	$	(27.2)	$	56.2
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	32.5	$	0.7	$	(31.8)	$	1.4

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Restricted Cash for Securitized Funding	$	16.9	$	—	$	—	$	—	$	16.9
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	—		19.4		19.9		(19.2)		20.1
Cash Flow Hedges:
Interest Rate Hedges	—		2.4		—		—		2.4
Total Risk Management Assets	—		21.8		19.9		(19.2)		22.5
Total Assets	$	16.9	$	21.8	$	19.9	$	(19.2)	$	39.4
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	19.5	$	0.6	$	(18.8)	$	1.3
Cash Flow Hedges:
Interest Rate Hedges	—		3.4		—		—		3.4
Total Risk Management Liabilities	$	—	$	22.9	$	0.6	$	(18.8)	$	4.7

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	17.0	$	8.9	$	(18.2)	$	7.7
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)	28.0		—		—		7.6		35.6
Fixed Income Securities:
United States Government	—		1,155.8		—		—		1,155.8
Corporate Debt	—		87.3		—		—		87.3
State and Local Government	—		58.9		—		—		58.9
Subtotal Fixed Income Securities	—		1,302.0		—		—		1,302.0
Equity Securities - Domestic (b)	2,274.8		—		—		—		2,274.8
Total Spent Nuclear Fuel and Decommissioning Trusts	2,302.8		1,302.0		—		7.6		3,612.4
Total Assets	$	2,302.8	$	1,319.0	$	8.9	$	(10.6)	$	3,620.1
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	21.9	$	1.6	$	(22.4)	$	1.1

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	15.1	$	2.5	$	(13.9)	$	3.7
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)	16.8		—		—		9.0		25.8
Fixed Income Securities:
United States Government	—		1,025.6		—		—		1,025.6
Corporate Debt	—		86.3		—		—		86.3
State and Local Government	—		114.3		—		—		114.3
Subtotal Fixed Income Securities	—		1,226.2		—		—		1,226.2
Equity Securities - Domestic (b)	2,054.7		—		—		—		2,054.7
Total Spent Nuclear Fuel and Decommissioning Trusts	2,071.5		1,226.2		—		9.0		3,306.7
Total Assets	$	2,071.5	$	1,241.3	$	2.5	$	(4.9)	$	3,310.4
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	12.0	$	0.4	$	(12.2)	$	0.2

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	0.7	$	—	$	(0.7)	$	—
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	—	$	105.4	$	0.1	$	105.5

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	0.3	$	—	$	(0.3)	$	—
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	—	$	110.3	$	—	$	110.3

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	0.4	$	23.1	$	(0.5)	$	23.0
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	—	$	0.2	$	(0.1)	$	0.1

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	0.2	$	10.3	$	(0.2)	$	10.3

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

June 30, 2021

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	0.6	$	15.0	$	(1.0)	$	14.6
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	—	$	0.4	$	(0.4)	$	—

December 31, 2020

	Level 1		Level 2		Level 3		Other		Total
Assets:	(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)	$	—	$	0.1	$	3.3	$	(0.2)	$	3.2
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)	$	—	$	—	$	1.7	$	—	$	1.7

(a)Amounts in “Other’’ column primarily represent cash deposits in bank accounts with financial institutions or third-parties.  Level 1 and Level 2 amounts primarily represent investments in money market funds.

(b)Amounts represent publicly traded equity securities and equity-based mutual funds.

(c)Amounts in “Other’’ column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.’’

(d)The June 30, 2021 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), were as follows: Level 1 matures $2 million in periods 2022-2024; Level 2 matures $11 million in 2021, $37 million in periods 2022-2024, $22 million in periods 2025-2026 and $13 million in periods 2027-2033; Level 3 matures $96 million in 2021, $12 million in periods 2022-2024, $4 million in periods 2025-2026 and $(27) million in periods 2027-2033.  Risk management commodity contracts are substantially comprised of power contracts.

(e)Amounts in “Other’’ column primarily represent accrued interest receivables from financial institutions.  Level 1 amounts primarily represent investments in money market funds.

(f)The December 31, 2020 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), were as follows: Level 2 matures $3 million in periods 2022-2024, $11 million in periods 2025-2026 and $1 million in periods 2027-2033; Level 3 matures $47 million in 2021, $37 million in periods 2022-2024, $14 million in periods 2025-2026 and $(13) million in periods 2027-2033.  Risk management commodity contracts are substantially comprised of power contracts.

(g)Substantially comprised of power contracts for the Registrant Subsidiaries.

(h)See “Warrants Held in Investee” section of Note 9 for additional information.

Changes in Fair Value of Net Trading Derivatives and Other Investments

Three Months Ended June 30, 2021	AEP		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Balance as of March 31, 2021	$	41.8	$	6.6	$	0.7	$	(104.0)	$	5.5	$	0.5
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	18.6		6.2		0.4		1.7		4.8		3.1
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	(10.6)		—		—		—		—		—
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)	15.4		—		—		—		—		—
Settlements	(34.5)		(13.0)		(1.2)		0.6		(10.3)		(4.5)
Transfers into Level 3 (d) (e)	(0.8)		—		—		—		—		—
Transfers out of Level 3 (e)	(19.1)		—		—		—		—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (f)	90.4		36.8		7.4		(3.7)		22.9		15.5
Balance as of June 30, 2021	$	101.2	$	36.6	$	7.3	$	(105.4)	$	22.9	$	14.6
Three Months Ended June 30, 2020	AEP		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Balance as of March 31, 2020	$	42.5	$	6.6	$	2.1	$	(120.9)	$	6.3	$	(2.5)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	39.1		23.5		2.8		—		3.9		0.8
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	(17.2)		—		—		—		—		—
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)	22.0		—		—		—		—		—
Settlements	(54.7)		(28.9)		(4.1)		2.6		(10.2)		(2.4)
Transfers out of Level 3 (e)	(0.2)		—		—		—		—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (f)	80.1		35.3		3.7		0.9		23.8		7.4
Balance as of June 30, 2020	$	111.6	$	36.5	$	4.5	$	(117.4)	$	23.8	$	3.3
Six Months Ended June 30, 2021	AEP		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Balance as of December 31, 2020	$	113.3	$	19.3	$	2.1	$	(110.3)	$	10.3	$	1.6
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	78.3		38.9		0.4		0.1		16.1		9.5
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	(66.8)		—		—		—		—		—
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)	18.5		—		—		—		—		—
Settlements	(110.6)		(58.4)		(2.6)		4.9		(26.4)		(12.0)
Transfers into Level 3 (d) (e)	(0.2)		—		—		—		—		—
Transfers out of Level 3 (e)	(25.6)		—		—		—		—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (f)	94.3		36.8		7.4		(0.1)		22.9		15.5
Balance as of June 30, 2021	$	101.2	$	36.6	$	7.3	$	(105.4)	$	22.9	$	14.6

Six Months Ended June 30, 2020	AEP		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Balance as of December 31, 2019	$	109.9	$	37.7	$	5.8	$	(103.6)	$	15.8	$	1.4
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	38.2		12.9		2.3		(0.9)		11.9		2.8
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	(6.4)		—		—		—		—		—
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)	18.3		—		—		—		—		—
Settlements	(113.7)		(50.8)		(8.1)		5.1		(27.6)		(7.6)
Transfers into Level 3 (d) (e)	(0.6)		—		—		—		—		—
Transfers out of Level 3 (e)	4.3		0.7		0.4		—		—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (f)	61.6		36.0		4.1		(18.0)		23.7		6.7
Balance as of June 30, 2020	$	111.6	$	36.5	$	4.5	$	(117.4)	$	23.8	$	3.3

(a)Included in revenues on the statements of income.

(b)Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

(c)Included in cash flow hedges on the statements of comprehensive income.

(d)Represents existing assets or liabilities that were previously categorized as Level 2.

(e)Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

(f)Relates to the net gains (losses) of those contracts that are not reflected on the statements of income.  These net gains (losses) are recorded as regulatory assets/liabilities or accounts payable.

Significant Unobservable Inputs for Level 3

AEP

Significant Unobservable Inputs

June 30, 2021

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input	Low		High		Average
	(in millions)
Energy Contracts	$	141.7	$	134.8	Discounted Cash Flow	Forward Market Price (a) (c)	$	0.05	$	96.20	$	31.99
Natural Gas Contracts	3.1		—		Discounted Cash Flow	Forward Market Price (b) (c)	2.28		3.82		3.14
FTRs	96.4		5.2		Discounted Cash Flow	Forward Market Price (a) (c)	(18.06)		12.15		0.22
Total	$	241.2	$	140.0

December 31, 2020

						Significant	Input/Range
	Fair Value				Valuation	Unobservable							Weighted
	Assets		Liabilities		Technique	Input	Low			High			Average
	(in millions)
Energy Contracts	$	213.5	$	169.7	Discounted Cash Flow	Forward Market Price (a) (c)	$	5.33		$	100.47		$	32.73
Natural Gas Contracts	—		1.7		Discounted Cash Flow	Forward Market Price (b) (c)	2.18			2.77			2.40
FTRs	42.8		3.4		Discounted Cash Flow	Forward Market Price (a) (c)	(15.08)			9.66			0.19
Other Investments	31.8		—		Black-Scholes Model	Liquidity Adjustment (d)	10		%	20		%	15		%
Total	$	288.1	$	174.8

APCo

Significant Unobservable Inputs

June 30, 2021

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input (a)	Low		High		Average (c)
	(in millions)
Energy Contracts	$	0.3	$	0.7	Discounted Cash Flow	Forward Market Price	$	16.26	$	55.49	$	32.70
FTRs	37.0		—		Discounted Cash Flow	Forward Market Price	(0.22)		9.04		1.05
Total	$	37.3	$	0.7

December 31, 2020

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input (a)	Low		High		Average (c)
	(in millions)
Energy Contracts	$	1.0	$	0.6	Discounted Cash Flow	Forward Market Price	$	10.84	$	41.09	$	25.08
FTRs	18.9		—		Discounted Cash Flow	Forward Market Price	0.04		5.61		1.13
Total	$	19.9	$	0.6

I&M

Significant Unobservable Inputs

June 30, 2021

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input (a)	Low		High		Average (c)
	(in millions)
Energy Contracts	$	0.1	$	0.4	Discounted Cash Flow	Forward Market Price	$	16.26	$	55.49	$	32.70
FTRs	8.8		1.2		Discounted Cash Flow	Forward Market Price	(1.03)		5.56		0.55
Total	$	8.9	$	1.6

December 31, 2020

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input (a)	Low		High		Average (c)
	(in millions)
Energy Contracts	$	0.6	$	0.3	Discounted Cash Flow	Forward Market Price	$	10.84	$	41.09	$	25.08
FTRs	1.9		0.1		Discounted Cash Flow	Forward Market Price	(1.96)		3.69		0.33
Total	$	2.5	$	0.4

OPCo

Significant Unobservable Inputs

June 30, 2021

Significant

Input/Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average (c)

(in millions)

Energy Contracts

$

—

$

105.4

Discounted Cash Flow

Forward Market Price

$

10.58

$

49.85

$

27.10

December 31, 2020

Significant

Input/Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average (c)

(in millions)

Energy Contracts

$

—

$

110.3

Discounted Cash Flow

Forward Market Price

$

16.19

$

46.98

$

28.30

PSO

Significant Unobservable Inputs

June 30, 2021

Significant

Input/Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average (c)

(in millions)

FTRs

$

23.1

$

0.2

Discounted Cash Flow

Forward Market Price

$

(10.36)

$

0.62

$

(2.03)

December 31, 2020

Significant

Input/Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average (c)

(in millions)

FTRs

$

10.3

$

—

Discounted Cash Flow

Forward Market Price

$

(6.93)

$

0.48

$

(1.93)

SWEPCo

Significant Unobservable Inputs

June 30, 2021

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input	Low		High		Average (c)
	(in millions)
Natural Gas Contracts	$	3.1	$	—	Discounted Cash Flow	Forward Market Price (b)	$	2.70	$	3.82	$	3.15
FTRs	11.9		0.4		Discounted Cash Flow	Forward Market Price (a)	(10.36)		0.62		(2.03)
Total	$	15.0	$	0.4

December 31, 2020

						Significant	Input/Range
	Fair Value				Valuation	Unobservable					Weighted
	Assets		Liabilities		Technique	Input	Low		High		Average (c)
	(in millions)
Natural Gas Contracts	$	—	$	1.7	Discounted Cash Flow	Forward Market Price (b)	$	2.18	$	2.77	$	2.41
FTRs	3.3		—		Discounted Cash Flow	Forward Market Price (a)	(6.93)		0.48		(1.93)
Total	$	3.3	$	1.7

(a)Represents market prices in dollars per MWh.

(b)Represents market prices in dollars per MMBtu.

(c)The weighted average is the product of the forward market price of the underlying commodity and volume weighted by term.

(d)Represents percentage discount applied to the publically available share price.

Sensitivity of Fair Value Measurements

Uncertainty of Fair Value Measurements

Significant Unobservable Input	Position	Change in Input	Impact on Fair Value Measurement
Forward Market Price	Buy	Increase (Decrease)	Higher (Lower)
Forward Market Price	Sell	Increase (Decrease)	Lower (Higher)
Liquidity Adjustment	Buy	Increase (Decrease)	Lower (Higher)