Comprehensive Income

12 Months Ended

Dec. 31, 2022

Comprehensive Income

COMPREHENSIVE INCOME

The disclosures in this note apply to all Registrants except AEPTCo and OPCo.

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCI and details of reclassifications from AOCI for the years ended December 31, 2022, 2021 and 2020.  The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 8 - Benefit Plans for additional information.

AEP
	Cash Flow Hedges					Pension and OPEB
For the Year Ended December 31, 2022	Commodity		Interest Rate			Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2021	$	163.7	$	(21.3)		$	115.6	$	(73.2)	$	184.8
Change in Fair Value Recognized in AOCI, Net of Tax	477.3		18.4		(a)	—		(155.4)		340.3
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	0.1		—			—		—		0.1
Purchased Electricity for Resale (b)	(528.6)		—			—		—		(528.6)
Interest Expense (b)	—		4.0			—		—		4.0
Amortization of Prior Service Cost (Credit)	—		—			(21.8)		—		(21.8)
Amortization of Actuarial (Gains) Losses	—		—			8.6		—		8.6
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(528.5)		4.0			(13.2)		—		(537.7)
Income Tax (Expense) Benefit	(111.0)		0.8			(2.8)		—		(113.0)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(417.5)		3.2			(10.4)		—		(424.7)
Reclassifications of KPCo Pension and OPEB Regulatory Assets to AOCI	—		—			—		(21.1)		(21.1)
Income Tax (Expense) Benefit	—		—			—		(4.4)		(4.4)
Reclassifications of KPCo Pension and OPEB Regulatory Assets to AOCI, Net of Income Tax (Expense) Benefit	—		—			—		(16.7)		(16.7)
Net Current Period Other Comprehensive Income (Loss)	59.8		21.6			(10.4)		(172.1)		(101.1)
Balance in AOCI as of December 31, 2022	$	223.5	$	0.3		$	105.2	$	(245.3)	$	83.7

AEP
	Cash Flow Hedges					Pension and OPEB
For the Year Ended December 31, 2021	Commodity		Interest Rate			Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2020	$	(60.6)	$	(47.5)		$	123.7	$	(100.7)	$	(85.1)
Change in Fair Value Recognized in AOCI, Net of Tax	488.2		21.1		(a)	—		27.5		536.8
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	0.7		—			—		—		0.7
Purchased Electricity for Resale (b)	(334.8)		—			—		—		(334.8)
Interest Expense (b)	—		6.5			—		—		6.5
Amortization of Prior Service Cost (Credit)	—		—			(19.4)		—		(19.4)
Amortization of Actuarial (Gains) Losses	—		—			9.1		—		9.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(334.1)		6.5			(10.3)		—		(337.9)
Income Tax (Expense) Benefit	(70.2)		1.4			(2.2)		—		(71.0)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(263.9)		5.1			(8.1)		—		(266.9)
Net Current Period Other Comprehensive Income (Loss)	224.3		26.2			(8.1)		27.5		269.9
Balance in AOCI as of December 31, 2021	$	163.7	$	(21.3)		$	115.6	$	(73.2)	$	184.8

	Cash Flow Hedges					Pension and OPEB
For the Year Ended December 31, 2020	Commodity		Interest Rate			Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	(103.5)	$	(11.5)		$	130.7	$	(163.4)	$	(147.7)
Change in Fair Value Recognized in AOCI, Net of Tax	(89.2)		(39.9)		(a)	—		62.7		(66.4)
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(0.4)		—			—		—		(0.4)
Purchased Electricity for Resale (b)	167.6		—			—		—		167.6
Interest Expense (b)	—		4.9			—		—		4.9
Amortization of Prior Service Cost (Credit)	—		—			(19.2)		—		(19.2)
Amortization of Actuarial (Gains) Losses	—		—			10.3		—		10.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit	167.2		4.9			(8.9)		—		163.2
Income Tax (Expense) Benefit	35.1		1.0			(1.9)		—		34.2
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	132.1		3.9			(7.0)		—		129.0
Net Current Period Other Comprehensive Income (Loss)	42.9		(36.0)			(7.0)		62.7		62.6
Balance in AOCI as of December 31, 2020	$	(60.6)	$	(47.5)		$	123.7	$	(100.7)	$	(85.1)

AEP Texas
				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2022		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2021		$	(1.3)	$	5.3	$	(10.5)	$	(6.5)
Change in Fair Value Recognized in AOCI, Net of Tax		—		—		(3.2)		(3.2)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3		—		—		1.3
Amortization of Prior Service Cost (Credit)		—		(0.1)		—		(0.1)
Amortization of Actuarial (Gains) Losses		—		0.2		—		0.2
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3		0.1		—		1.4
Income Tax (Expense) Benefit		0.3		—		—		0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0		0.1		—		1.1
Net Current Period Other Comprehensive Income (Loss)		1.0		0.1		(3.2)		(2.1)
Balance in AOCI as of December 31, 2022		$	(0.3)	$	5.4	$	(13.7)	$	(8.6)

				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2021		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2020		$	(2.3)	$	5.1	$	(11.7)	$	(8.9)
Change in Fair Value Recognized in AOCI, Net of Tax		0.1		—		1.2		1.3
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.2		—		—		1.2
Amortization of Prior Service Cost (Credit)		—		(0.1)		—		(0.1)
Amortization of Actuarial (Gains) Losses		—		0.3		—		0.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.2		0.2		—		1.4
Income Tax (Expense) Benefit		0.3		—		—		0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		0.9		0.2		—		1.1
Net Current Period Other Comprehensive Income (Loss)		1.0		0.2		1.2		2.4
Balance in AOCI as of December 31, 2021		$	(1.3)	$	5.3	$	(10.5)	$	(6.5)

				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019		$	(3.4)	$	4.9	$	(14.3)	$	(12.8)
Change in Fair Value Recognized in AOCI, Net of Tax		0.1		—		2.6		2.7
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3		—		—		1.3
Amortization of Prior Service Cost (Credit)		—		(0.1)		—		(0.1)
Amortization of Actuarial (Gains) Losses		—		0.3		—		0.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3		0.2		—		1.5
Income Tax (Expense) Benefit		0.3		—		—		0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0		0.2		—		1.2
Net Current Period Other Comprehensive Income (Loss)		1.1		0.2		2.6		3.9
Balance in AOCI as of December 31, 2020		$	(2.3)	$	5.1	$	(11.7)	$	(8.9)

APCo
				Pension and OPEB
				Amortization		Changes in
		Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2022		Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2021		$	7.5	$	1.2	$	15.7	$	24.4
Change in Fair Value Recognized in AOCI, Net of Tax		—		—		(24.1)		(24.1)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		(1.0)		—		—		(1.0)
Amortization of Prior Service Cost (Credit)		—		(5.4)		—		(5.4)
Reclassifications from AOCI, before Income Tax (Expense) Benefit		(1.0)		(5.4)		—		(6.4)
Income Tax (Expense) Benefit		(0.2)		(1.1)		—		(1.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		(0.8)		(4.3)		—		(5.1)
Net Current Period Other Comprehensive Income (Loss)		(0.8)		(4.3)		(24.1)		(29.2)
Balance in AOCI as of December 31, 2022		$	6.7	$	(3.1)	$	(8.4)	$	(4.8)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedges -		of Deferred		Funded
For the Year Ended December 31, 2021	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2020	$	(0.8)	$	5.4	$	2.6	$	7.2
Change in Fair Value Recognized in AOCI, Net of Tax	9.2		—		13.1		22.3
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.1)		—		—		(1.1)
Amortization of Prior Service Cost (Credit)	—		(5.3)		—		(5.3)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.1)		(5.3)		—		(6.4)
Income Tax (Expense) Benefit	(0.2)		(1.1)		—		(1.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(0.9)		(4.2)		—		(5.1)
Net Current Period Other Comprehensive Income (Loss)	8.3		(4.2)		13.1		17.2
Balance in AOCI as of December 31, 2021	$	7.5	$	1.2	$	15.7	$	24.4

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedges -		of Deferred		Funded
For the Year Ended December 31, 2020	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	0.9	$	9.2	$	(5.1)	$	5.0
Change in Fair Value Recognized in AOCI, Net of Tax	(0.7)		—		7.7		7.0
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3)		—		—		(1.3)
Amortization of Prior Service Cost (Credit)	—		(5.3)		—		(5.3)
Amortization of Actuarial (Gains) Losses	—		0.5		—		0.5
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3)		(4.8)		—		(6.1)
Income Tax (Expense) Benefit	(0.3)		(1.0)		—		(1.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0)		(3.8)		—		(4.8)
Net Current Period Other Comprehensive Income (Loss)	(1.7)		(3.8)		7.7		2.2
Balance in AOCI as of December 31, 2020	$	(0.8)	$	5.4	$	2.6	$	7.2

I&M
			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2022	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2021	$	(6.7)	$	4.7	$	0.7	$	(1.3)
Change in Fair Value Recognized in AOCI, Net of Tax	—		—		(0.3)		(0.3)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0		—		—		2.0
Amortization of Prior Service Cost (Credit)	—		(0.8)		—		(0.8)
Amortization of Actuarial (Gains) Losses	—		0.4		—		0.4
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0		(0.4)		—		1.6
Income Tax (Expense) Benefit	0.4		(0.1)		—		0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6		(0.3)		—		1.3
Net Current Period Other Comprehensive Income (Loss)	1.6		(0.3)		(0.3)		1.0
Balance in AOCI as of December 31, 2022	$	(5.1)	$	4.4	$	0.4	$	(0.3)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2021	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2020	$	(8.3)	$	4.8	$	(3.5)	$	(7.0)
Change in Fair Value Recognized in AOCI, Net of Tax	—		—		4.2		4.2
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0		—		—		2.0
Amortization of Prior Service Cost (Credit)	—		(0.8)		—		(0.8)
Amortization of Actuarial (Gains) Losses	—		0.7		—		0.7
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0		(0.1)		—		1.9
Income Tax (Expense) Benefit	0.4		—		—		0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6		(0.1)		—		1.5
Net Current Period Other Comprehensive Income (Loss)	1.6		(0.1)		4.2		5.7
Balance in AOCI as of December 31, 2021	$	(6.7)	$	4.7	$	0.7	$	(1.3)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	(9.9)	$	4.9	$	(6.6)	$	(11.6)
Change in Fair Value Recognized in AOCI, Net of Tax	—		—		3.1		3.1
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0		—		—		2.0
Amortization of Prior Service Cost (Credit)	—		(0.8)		—		(0.8)
Amortization of Actuarial (Gains) Losses	—		0.7		—		0.7
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0		(0.1)		—		1.9
Income Tax (Expense) Benefit	0.4		—		—		0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6		(0.1)		—		1.5
Net Current Period Other Comprehensive Income (Loss)	1.6		(0.1)		3.1		4.6
Balance in AOCI as of December 31, 2020	$	(8.3)	$	4.8	$	(3.5)	$	(7.0)

PSO

	Cash Flow Hedge –
For the Year Ended December 31, 2022	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2021	$	—
Change in Fair Value Recognized in AOCI, Net of Tax	1.3
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	—
Reclassifications from AOCI, before Income Tax (Expense) Benefit	—
Income Tax (Expense) Benefit	—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	—
Net Current Period Other Comprehensive Income (Loss)	1.3
Balance in AOCI as of December 31, 2022	$	1.3

	Cash Flow Hedge –
For the Year Ended December 31, 2021	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2020	$	0.1
Change in Fair Value Recognized in AOCI, Net of Tax	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(0.1)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(0.1)
Income Tax (Expense) Benefit	—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(0.1)
Net Current Period Other Comprehensive Income (Loss)	(0.1)
Balance in AOCI as of December 31, 2021	$	—

	Cash Flow Hedge –
For the Year Ended December 31, 2020	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2019	$	1.1
Change in Fair Value Recognized in AOCI, Net of Tax	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3)
Income Tax (Expense) Benefit	(0.3)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0)
Net Current Period Other Comprehensive Income (Loss)	(1.0)
Balance in AOCI as of December 31, 2020	$	0.1

SWEPCo
			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2022	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2021	$	1.2	$	(4.4)	$	9.9	$	6.7
Change in Fair Value Recognized in AOCI, Net of Tax	—		—		(9.2)		(9.2)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(0.1)		—		—		(0.1)
Amortization of Prior Service Cost (Credit)	—		(2.0)		—		(2.0)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(0.1)		(2.0)		—		(2.1)
Income Tax (Expense) Benefit	—		(0.4)		—		(0.4)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(0.1)		(1.6)		—		(1.7)
Net Current Period Other Comprehensive Income (Loss)	(0.1)		(1.6)		(9.2)		(10.9)
Balance in AOCI as of December 31, 2022	$	1.1	$	(6.0)	$	0.7	$	(4.2)

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2021	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2020	$	(0.3)	$	(2.8)	$	5.0	$	1.9
Change in Fair Value Recognized in AOCI, Net of Tax	—		—		4.9		4.9
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	1.9		—		—		1.9
Amortization of Prior Service Cost (Credit)	—		(2.0)		—		(2.0)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	1.9		(2.0)		—		(0.1)
Income Tax (Expense) Benefit	0.4		(0.4)		—		—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.5		(1.6)		—		(0.1)
Net Current Period Other Comprehensive Income (Loss)	1.5		(1.6)		4.9		4.8
Balance in AOCI as of December 31, 2021	$	1.2	$	(4.4)	$	9.9	$	6.7

			Pension and OPEB
			Amortization		Changes in
	Cash Flow Hedge –		of Deferred		Funded
For the Year Ended December 31, 2020	Interest Rate		Costs		Status		Total
	(in millions)
Balance in AOCI as of December 31, 2019	$	(1.8)	$	(1.3)	$	1.8	$	(1.3)
Change in Fair Value Recognized in AOCI, Net of Tax	—		—		3.2		3.2
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	1.9		—		—		1.9
Amortization of Prior Service Cost (Credit)	—		(2.0)		—		(2.0)
Amortization of Actuarial (Gains) Losses	—		0.1		—		0.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	1.9		(1.9)		—		—
Income Tax (Expense) Benefit	0.4		(0.4)		—		—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.5		(1.5)		—		—
Net Current Period Other Comprehensive Income (Loss)	1.5		(1.5)		3.2		3.2
Balance in AOCI as of December 31, 2020	$	(0.3)	$	(2.8)	$	5.0	$	1.9

(a)The change in fair value includes $(10) million, $(7) million and $6 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC.

(b)Amounts reclassified to the referenced line item on the statements of income.