Rate Matters (Tables)

9 Months Ended

Sep. 30, 2023

Regulated Generating Units to be Retired

Plant	Net Book Value		Accelerated Depreciation Regulatory Asset		Cost of Removal Regulatory Liability			Projected Retirement Date		Current Authorized Recovery Period	Annual Depreciation (a)
	(dollars in millions)
Northeastern Plant, Unit 3	$	112.5	$	159.5	$	20.4	(b)	2026		(c)	$	15.0
Welsh Plant, Units 1 and 3	368.8		115.5		58.0		(d)	2028	(e)	(f)	38.6

(a)Represents the amount of annual depreciation that has been collected from customers over the prior 12-month period.

(b)Includes Northeastern Plant, Unit 4, which was retired in 2016. Removal of Northeastern Plant, Unit 4, will be performed with the removal of Northeastern Plant, Unit 3, after retirement.

(c)Northeastern Plant, Unit 3 is currently being recovered through 2040.

(d)Includes Welsh Plant, Unit 2, which was retired in 2016. Removal of Welsh Plant, Unit 2, will be performed with the removal of Welsh Plant, Units 1 and 3, after retirement.

(e)Represents projected retirement date of coal assets, units are being evaluated for conversion to natural gas after 2028.

(f)Unit 1 is being recovered through 2027 in the Louisiana jurisdiction and through 2037 in the Arkansas and Texas jurisdictions. Unit 3 is being recovered through 2032 in the Louisiana jurisdiction and through 2042 in the Arkansas and Texas jurisdictions.

Regulatory Assets Pending Final Regulatory Approval

	AEP
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	115.5	$	85.6
Pirkey Plant	113.0		116.5
Unrecovered Winter Storm Fuel Costs (a)	101.4		121.7
Dolet Hills Power Station Fuel Costs - Louisiana	34.7		32.0
Texas Mobile Generation Costs (b)	—		17.6
Other Regulatory Assets Pending Final Regulatory Approval	21.0		19.3
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (c)(d)(e)	385.8		407.2
2020-2022 Virginia Triennial Under-Earnings	37.4		37.9
Plant Retirement Costs – Asset Retirement Obligation Costs	25.9		25.9
Other Regulatory Assets Pending Final Regulatory Approval	51.6		55.6
Total Regulatory Assets Pending Final Regulatory Approval	$	886.3	$	919.3

(a)Includes $37 million and $37 million of unrecovered winter storm fuel costs recorded as a current regulatory asset as of September 30, 2023 and December 31, 2022, respectively. See the “February 2021 Severe Winter Weather Impacts in SPP” section below for additional information.

(b)In October 2023, the PUCT issued an order approving a rider to recover deferred Texas Mobile Generation Costs. Recovery of deferred costs through the new rider is updated annually, subject to Commission review.

(c)In October 2023, the PUCO issued an order approving recovery of $34 million in Ohio storm-related costs.

(d)In April 2023, the LPSC issued an order approving the prudence and future recovery of the Louisiana storm-related regulatory assets. See “2021 Louisiana Storm Cost Filing” section below for additional information.

(e)In June 2023, storms in the Oklahoma, Louisiana and Texas service territories caused power outages and extensive damage resulting in the deferral of $58 million, $29 million and $24 million, respectively. Recovery of these storm costs will be addressed in a future request.

	AEP Texas
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Texas Mobile Generation Costs (a)	$	—	$	17.6
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	35.9		26.7
Vegetation Management Program	5.2		5.2
Texas Retail Electric Provider Bad Debt Expense	4.1		4.1
Other Regulatory Assets Pending Final Regulatory Approval	16.3		13.4
Total Regulatory Assets Pending Final Regulatory Approval	$	61.5	$	67.0

(a)In October 2023, the PUCT issued an order approving a rider to recover deferred Texas Mobile Generation Costs. Recovery of deferred costs through the new rider is updated annually, subject to Commission review.

	APCo
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
COVID-19 – Virginia	$	7.0	$	7.0
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs - West Virginia	72.2		72.6
2020-2022 Virginia Triennial Under-Earnings	37.4		37.9
Plant Retirement Costs – Asset Retirement Obligation Costs	25.9		25.9
Other Regulatory Assets Pending Final Regulatory Approval	5.9		1.1
Total Regulatory Assets Pending Final Regulatory Approval	$	148.4	$	144.5

	I&M
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	0.2	$	0.1
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs - Indiana	29.4		21.6
Other Regulatory Assets Pending Final Regulatory Approval	2.7		2.0
Total Regulatory Assets Pending Final Regulatory Approval	$	32.3	$	23.7

	OPCo
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (a)	$	21.2	$	33.8
Total Regulatory Assets Pending Final Regulatory Approval	$	21.2	$	33.8

(a)In October 2023, the PUCO issued an order approving recovery of $34 million in storm-related costs.

	PSO
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (a)	$	92.8	$	25.5
Other Regulatory Assets Pending Final Regulatory Approval	0.2		0.1
Total Regulatory Assets Pending Final Regulatory Approval	$	93.0	$	25.6

(a)In June 2023, storms caused power outages and extensive damage to the Oklahoma service territory, resulting in the deferral of $58 million. Recovery for these storm costs will be addressed in a future request.

	SWEPCo
	September 30,		December 31,
	2023		2022
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	115.5	$	85.6
Pirkey Plant	113.0		116.5
Unrecovered Winter Storm Fuel Costs (a)	101.4		121.7
Dolet Hills Power Station Fuel Costs - Louisiana	34.7		32.0
Dolet Hills Power Station	12.0		9.7
Other Regulatory Assets Pending Final Regulatory Approval	1.7		2.5
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (b)(c)	53.4		151.5
Asset Retirement Obligation - Louisiana	—		11.8
Other Regulatory Assets Pending Final Regulatory Approval	14.8		16.0
Total Regulatory Assets Pending Final Regulatory Approval	$	446.5	$	547.3

(a)Includes $37 million and $37 million of unrecovered winter storm fuel costs recorded as a current regulatory asset as of September 30, 2023 and December 31, 2022, respectively. See the “February 2021 Severe Winter Weather Impacts in SPP” section below for additional information.

(b)In April 2023, the LPSC issued an order approving the prudence and future recovery of the Louisiana storm-related regulatory assets. See “2021 Louisiana Storm Cost Filing” section below for additional information.

(c)In June 2023, additional storms in the Louisiana and Texas service territories caused power outages and extensive damage resulting in the deferral of $29 million and $24 million, respectively. Recovery of these storm costs will be addressed in a future request.

Southwestern Electric Power Co [Member] | February 2021 Severe Storm Fuel Costs

Natural Gas Expenses and Purchases of Electricity to be Recovered from Customers [Table Text Block]

Jurisdiction	September 30, 2023		December 31, 2022		Approved Recovery Period	Approved Carrying Charge
	(in millions)
Arkansas	$	59.4	$	74.9	6 years	(a)
Louisiana	101.4		121.7		(b)	(b)
Texas	108.6		132.4		5 years	1.65%
Total	$	269.4	$	329.0

(a)SWEPCo is permitted to record carrying costs on the unrecovered balance of fuel costs at a weighted-cost of capital approved by the APSC. The APSC will conduct an audit of these costs in 2024. SWEPCo’s direct testimony in support of the costs is due in December 2023.

(b)In March 2021, the LPSC approved a special order granting a temporary modification to the FAC and shortly after SWEPCo began recovery of its Louisiana jurisdictional share of these fuel costs based on a five-year recovery period inclusive of an interim carrying charge equal to the prime rate. The special order states the fuel and purchased power costs incurred will be subject to a future LPSC audit.