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Derivatives and Hedging (Tables)
 3 Months Ended
Mar. 31, 2022
Notional Volume of Derivative Instruments
Notional Volume of Derivative Instruments
March 31, 2022
Primary Risk
Exposure		Unit of
Measure		AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Commodity:
      
PowerMWhs241.4 — 13.2 5.3 2.7 4.5 2.3 
Natural GasMMBtus45.6 — — — — — 3.7 
Heating Oil and GasolineGallons5.4 1.4 0.8 0.5 1.1 0.6 0.8 
Interest Rate
USD$108.6 $— $— $— $— $— $— 
Interest Rate on Long-term Debt
USD$1,150.0 $— $— $— $— $— $— 
December 31, 2021
Primary Risk
Exposure		Unit of
Measure		AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Commodity:
      
PowerMWhs287.9 — 33.1 13.6 2.7 11.9 3.4 
Natural GasMMBtus34.1 — — — — 1.3 5.1 
Heating Oil and GasolineGallons7.4 1.9 1.1 0.7 1.5 0.8 1.0 
Interest RateUSD$116.5 $— $— $— $— $— $— 
Interest Rate on Long-term Debt
USD$950.0 $— $— $— $— $— $— 
Fair Value of Derivative Instruments
AEP
March 31, 2022
Risk
Management
Contracts		Hedging ContractsGross Amounts
of Risk
Management
Assets/
Liabilities
Recognized		Gross
Amounts
Offset in the
Statement of
Financial
Position (b)		Net Amounts of
Assets/Liabilities
Presented in the
Statement of
Financial
Position (c)
Balance Sheet LocationCommodity (a)Commodity (a)Interest Rate (a)
 (in millions)
Current Risk Management Assets (d)$965.8 $420.5 $— $1,386.3 $(1,075.6)$310.7 
Long-term Risk Management Assets497.0 140.4 3.9 641.3 (380.5)260.8 
Total Assets1,462.8 560.9 3.9 2,027.6 (1,456.1)571.5 
Current Risk Management Liabilities (e)754.6 35.8 2.3 792.7 (662.7)130.0 
Long-term Risk Management Liabilities346.6 13.5 79.5 439.6 (139.2)300.4 
Total Liabilities1,101.2 49.3 81.8 1,232.3 (801.9)430.4 
Total MTM Derivative Contract Net Assets (Liabilities)
$361.6 $511.6 $(77.9)$795.3 $(654.2)$141.1 

December 31, 2021
Risk
Management
Contracts		Hedging ContractsGross Amounts
of Risk
Management
Assets/
Liabilities
Recognized		Gross
Amounts
Offset in the
Statement of
Financial
Position (b)		Net Amounts of
Assets/Liabilities
Presented in the
Statement of
Financial
Position (c)
Balance Sheet LocationCommodity (a)Commodity (a)Interest Rate (a)
(in millions)
Current Risk Management Assets (d)$513.4 $176.0 $1.2 $690.6 $(496.2)$194.4 
Long-term Risk Management Assets370.5 89.1 — 459.6 (192.6)267.0 
Total Assets883.9 265.1 1.2 1,150.2 (688.8)461.4 
Current Risk Management Liabilities (e)395.7 40.9 — 436.6 (361.2)75.4 
Long-term Risk Management Liabilities243.9 16.7 38.1 298.7 (68.4)230.3 
Total Liabilities639.6 57.6 38.1 735.3 (429.6)305.7 
Total MTM Derivative Contract Net Assets (Liabilities)
$244.3 $207.5 $(36.9)$414.9 $(259.2)$155.7 
AEP Texas
March 31, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$1.5 $(1.3)$0.2 
Long-term Risk Management Assets— — — 
Total Assets1.5 (1.3)0.2 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities— — — 
Total Liabilities— — — 
Total MTM Derivative Contract Net Assets (Liabilities)$1.5 $(1.3)$0.2 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$0.6 $(0.6)$— 
Long-term Risk Management Assets— — — 
Total Assets0.6 (0.6)— 
Current Risk Management Liabilities— — — 
Long-term Risk Management Liabilities— — — 
Total Liabilities— — — 
Total MTM Derivative Contract Net Assets (Liabilities)$0.6 $(0.6)$— 
APCo
March 31, 2022
Risk ManagementGross Amounts Offset Net Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement
Balance Sheet LocationCommodity (a)Financial Position (b)of Financial Position (c)
(in millions)
Current Risk Management Assets$10.8 $(3.8)$7.0 
Deferred Charges and Other Noncurrent Assets - Long-term Risk Management Assets0.5 (0.5)— 
Total Assets11.3 (4.3)7.0 
Other Current Liabilities - Current Risk Management Liabilities3.2 (3.0)0.2 
Deferred Credits and Other Noncurrent Liabilities - Long-term Risk Management Liabilities0.5 (0.5)— 
Total Liabilities3.7 (3.5)0.2 
Total MTM Derivative Contract Net Assets (Liabilities)$7.6 $(0.8)$6.8 

December 31, 2021
RiskGross AmountsNet Amounts of Assets/
ManagementOffset in theLiabilities Presented in
Contracts –Statement ofthe Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$47.5 $(5.5)$42.0 
Deferred Charges and Other Noncurrent Assets - Long-term Risk Management Assets0.2 (0.2)— 
Total Assets47.7 (5.7)42.0 
Other Current Liabilities - Current Risk Management Liabilities7.2 (6.4)0.8 
Deferred Credits and Other Noncurrent Liabilities - Long-term Risk Management Liabilities0.2 (0.2)— 
Total Liabilities7.4 (6.6)0.8 
Total MTM Derivative Contract Net Assets$40.3 $0.9 $41.2 
I&M
March 31, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$4.6 $(3.1)$1.5 
Deferred Charges and Other Noncurrent Assets - Long-term Risk Management Assets0.3 (0.3)— 
Total Assets4.9 (3.4)1.5 
Current Risk Management Liabilities2.9 (2.5)0.4 
Deferred Credits and Other Noncurrent Liabilities - Long-term Risk Management Liabilities0.3 (0.3)— 
Total Liabilities3.2 (2.8)0.4 
Total MTM Derivative Contract Net Assets (Liabilities)$1.7 $(0.6)$1.1 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$11.1 $(7.8)$3.3 
Deferred Charges and Other Noncurrent Assets - Long-term Risk Management Assets0.2 (0.2)— 
Total Assets11.3 (8.0)3.3 
Current Risk Management Liabilities14.8 (9.8)5.0 
Deferred Credits and Other Noncurrent Liabilities - Long-term Risk Management Liabilities0.2 (0.2)— 
Total Liabilities15.0 (10.0)5.0 
Total MTM Derivative Contract Net Assets (Liabilities)$(3.7)$2.0 $(1.7)
OPCo
March 31, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Prepayments and Other Current Assets - Current Risk Management Assets$1.1 $(1.0)$0.1 
Long-term Risk Management Assets— — — 
Total Assets1.1 (1.0)0.1 
Current Risk Management Liabilities1.5 — 1.5 
Long-term Risk Management Liabilities67.0 — 67.0 
Total Liabilities68.5 — 68.5 
Total MTM Derivative Contract Net Liabilities$(67.4)$(1.0)$(68.4)

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$0.5 $(0.5)$— 
Long-term Risk Management Assets— — — 
Total Assets0.5 (0.5)— 
Current Risk Management Liabilities6.7 — 6.7 
Long-term Risk Management Liabilities85.8 — 85.8 
Total Liabilities92.5 — 92.5 
Total MTM Derivative Contract Net Liabilities$(92.0)$(0.5)$(92.5)
PSO
March 31, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$7.9 $(1.2)$6.7 
Long-term Risk Management Assets— — — 
Total Assets7.9 (1.2)6.7 
Current Risk Management Liabilities0.8 (0.7)0.1 
Long-term Risk Management Liabilities— — — 
Total Liabilities0.8 (0.7)0.1 
Total MTM Derivative Contract Net Assets (Liabilities)$7.1 $(0.5)$6.6 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$12.4 $(0.3)$12.1 
Long-term Risk Management Assets— — — 
Total Assets12.4 (0.3)12.1 
Current Risk Management Liabilities3.7 — 3.7 
Long-term Risk Management Liabilities— — — 
Total Liabilities3.7 — 3.7 
Total MTM Derivative Contract Net Assets (Liabilities)$8.7 $(0.3)$8.4 
SWEPCo
March 31, 2022
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$16.7 $(0.9)$15.8 
Long-term Risk Management Assets— — — 
Total Assets16.7 (0.9)15.8 
Current Risk Management Liabilities0.2 (0.2)— 
Long-term Risk Management Liabilities— — — 
Total Liabilities0.2 (0.2)— 
Total MTM Derivative Contract Net Assets (Liabilities)$16.5 $(0.7)$15.8 

December 31, 2021
Risk ManagementGross Amounts OffsetNet Amounts of Assets/Liabilities
Contracts –in the Statement ofPresented in the Statement of
Balance Sheet LocationCommodity (a)Financial Position (b)Financial Position (c)
(in millions)
Current Risk Management Assets$10.1 $(0.3)$9.8 
Deferred Charges and Other Noncurrent Assets - Long-term Risk Management Assets1.1 — 1.1 
Total Assets11.2 (0.3)10.9 
Current Risk Management Liabilities2.1 — 2.1 
Long-term Risk Management Liabilities— — — 
Total Liabilities2.1 — 2.1 
Total MTM Derivative Contract Net Assets (Liabilities)$9.1 $(0.3)$8.8 

(a)Derivative instruments within these categories are disclosed as gross.  These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for “Derivatives and Hedging.”
(b)Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for “Derivatives and Hedging.”
(c)All derivative contracts subject to a master netting arrangement or similar agreement are offset in the statement of financial position.
(d)Amount excludes Risk Management Assets of $1.4 million and $6 million as of March 31, 2022 and December 31, 2021, respectively, classified as Assets Held for Sale on the balance sheets. See “Disposition of KPCo and KTCo” section of Note 6 for additional information.
(e)Amount excludes Risk Management Liabilities of $0 and $0.1 million as of March 31, 2022 and December 31, 2021, respectively, classified as Liabilities Held for Sale on the balance sheets. See “Disposition of KPCo and KTCo” section of Note 6 for additional information.
Amount of Gain (Loss) Recognized on Risk Management Contracts
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Three Months Ended March 31, 2022
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Generation & Marketing Revenues$152.3 $— $— $— $— $— $— 
Electric Generation, Transmission and Distribution Revenues
— — 0.1 (0.1)— — — 
Purchased Electricity for Resale1.5 — 1.4 — — — — 
Other Operation0.6 0.2 — 0.1 0.1 0.1 0.1 
Maintenance0.8 0.2 0.1 0.1 0.1 0.1 0.1 
Regulatory Assets (a)23.6 — (0.1)(1.6)23.9 3.6 (2.1)
Regulatory Liabilities (a)36.5 0.9 (1.4)1.7 — 12.7 20.9 
Total Gain on Risk Management Contracts$215.3 $1.3 $0.1 $0.2 $24.1 $16.5 $19.0 
Three Months Ended March 31, 2021
Location of Gain (Loss)AEPAEP TexasAPCoI&MOPCoPSOSWEPCo
(in millions)
Vertically Integrated Utilities Revenues$0.2 $— $— $— $— $— $— 
Generation & Marketing Revenues(0.4)— — — — — — 
Electric Generation, Transmission and Distribution Revenues— — 0.2 — — — — 
Purchased Electricity for Resale0.4 — 0.4 — — — — 
Other Operation0.3 0.1 — — 0.1 — — 
Maintenance0.5 0.1 0.1 0.1 0.1 0.1 0.1 
Regulatory Assets (a)6.4 — — (0.9)6.6 — 0.8 
Regulatory Liabilities (a)22.0 0.4 3.4 (3.2)2.9 11.2 6.2 
Total Gain (Loss) on Risk Management Contracts$29.4 $0.6 $4.1 $(4.0)$9.7 $11.3 $7.1 

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.
Impact of Fair Value Hedges on the Condensed Balance Sheet
Carrying Amount of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions)
Long-term Debt (a) (b)$(906.0)$(952.3)$38.2 $(8.5)

(a)Amounts included on the balance sheets within Long-term Debt Due within One Year and Long-term Debt, respectively.
(b)Amounts include $(44) million and $(46) million as of March 31, 2022 and December 31, 2021, respectively, for the fair value hedge adjustment of hedged debt obligations for which hedge accounting has been discontinued.
Gain (Loss) on Hedging Instruments
Three Months Ended March 31,
20222021
(in millions)
Gain (Loss) on Interest Rate Contracts:
Fair Value Hedging Instruments (a)$(44.8)$(33.2)
Fair Value Portion of Long-term Debt (a)44.8 33.2 

(a)Gain (Loss) is included in Interest Expense on the statements of income.
Impact of Cash Flow Hedges on the Condensed Balance Sheet
Impact of Cash Flow Hedges on AEP’s Balance Sheets
March 31, 2022December 31, 2021
CommodityInterest RateCommodityInterest Rate
(in millions)
AOCI Gain (Loss) Net of Tax$404.0 $(13.6)$163.7 $(21.3)
Portion Expected to be Reclassed to Net Income During the Next Twelve Months
303.9 (2.9)106.7 (3.3)
Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets
March 31, 2022December 31, 2021
Interest Rate
Expected to beExpected to be
Reclassified toReclassified to
Net Income DuringNet Income During
AOCI Gain (Loss)the NextAOCI Gain (Loss)the Next
CompanyNet of TaxTwelve MonthsNet of TaxTwelve Months
(in millions)
AEP Texas$(1.0)$(1.0)$(1.3)$(1.1)
APCo7.3 0.8 7.5 0.8 
I&M(6.3)(1.6)(6.7)(1.6)
SWEPCo1.3 0.2 1.2 0.1