XML 57 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Business Segments
 3 Months Ended
Mar. 31, 2017
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,269.8

 
$
1,066.4

 
$
27.7

 
$
558.8

 
$
10.6

 
$
—

 
$
3,933.3

Other Operating Segments
20.6

 
20.0

 
128.4

 
32.6

 
15.9

 
(217.5
)
 
—

Total Revenues
$
2,290.4

 
$
1,086.4

 
$
156.1

 
$
591.4

 
$
26.5

 
$
(217.5
)
 
$
3,933.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
220.5

 
$
119.1

 
$
72.8

 
$
186.2

 
$
(4.4
)
 
$
—

 
$
594.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,218.1

 
$
1,077.3

 
$
29.3

 
$
713.9

 
$
6.3

 
$
—

 
$
4,044.9

Other Operating Segments
27.5

 
19.5

 
59.3

 
34.1

 
18.1

 
(158.5
)
 
—

Total Revenues
$
2,245.6

 
$
1,096.8

 
$
88.6

 
$
748.0

 
$
24.4

 
$
(158.5
)
 
$
4,044.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
278.7

 
$
107.5

 
$
44.7

 
$
70.7

 
$
1.5

 
$
—

 
$
503.1

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,780.5

 
$
14,990.4

 
$
5,665.4

 
$
483.7

 
$
357.2

 
$
(366.7
)
(b)
$
62,910.5

Accumulated Depreciation and Amortization
 
12,712.9

 
3,697.8

 
120.7

 
140.4

 
188.7

 
(186.3
)
(b)
16,674.2

Total Property Plant and Equipment - Net
 
$
29,067.6

 
$
11,292.6

 
$
5,544.7

 
$
343.3

 
$
168.5

 
$
(180.4
)
(b)
$
46,236.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
9.7

 
$
—

 
$
—

 
$
9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,562.2

 
$
14,813.5

 
$
6,721.4

 
$
2,194.9

 
$
21,233.1

 
$
(20,796.8
)
(b) (c)
$
61,728.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,518.9

 
$
316.4

 
$
130.7

 
$
0.1

 
$
548.1

 
$
—

 
$
2,514.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
9,938.9

 
4,554.4

 
1,931.4

 
—

 
297.5

 
—

 
16,722.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,497.8

 
$
4,870.8

 
$
2,062.1

 
$
32.3

 
$
845.6

 
$
(72.2
)
 
$
19,236.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
3.5

 
$
—

 
$
—

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.

Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Appalachian Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,269.8

 
$
1,066.4

 
$
27.7

 
$
558.8

 
$
10.6

 
$
—

 
$
3,933.3

Other Operating Segments
20.6

 
20.0

 
128.4

 
32.6

 
15.9

 
(217.5
)
 
—

Total Revenues
$
2,290.4

 
$
1,086.4

 
$
156.1

 
$
591.4

 
$
26.5

 
$
(217.5
)
 
$
3,933.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
220.5

 
$
119.1

 
$
72.8

 
$
186.2

 
$
(4.4
)
 
$
—

 
$
594.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,218.1

 
$
1,077.3

 
$
29.3

 
$
713.9

 
$
6.3

 
$
—

 
$
4,044.9

Other Operating Segments
27.5

 
19.5

 
59.3

 
34.1

 
18.1

 
(158.5
)
 
—

Total Revenues
$
2,245.6

 
$
1,096.8

 
$
88.6

 
$
748.0

 
$
24.4

 
$
(158.5
)
 
$
4,044.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
278.7

 
$
107.5

 
$
44.7

 
$
70.7

 
$
1.5

 
$
—

 
$
503.1

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,780.5

 
$
14,990.4

 
$
5,665.4

 
$
483.7

 
$
357.2

 
$
(366.7
)
(b)
$
62,910.5

Accumulated Depreciation and Amortization
 
12,712.9

 
3,697.8

 
120.7

 
140.4

 
188.7

 
(186.3
)
(b)
16,674.2

Total Property Plant and Equipment - Net
 
$
29,067.6

 
$
11,292.6

 
$
5,544.7

 
$
343.3

 
$
168.5

 
$
(180.4
)
(b)
$
46,236.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
9.7

 
$
—

 
$
—

 
$
9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,562.2

 
$
14,813.5

 
$
6,721.4

 
$
2,194.9

 
$
21,233.1

 
$
(20,796.8
)
(b) (c)
$
61,728.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,518.9

 
$
316.4

 
$
130.7

 
$
0.1

 
$
548.1

 
$
—

 
$
2,514.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
9,938.9

 
4,554.4

 
1,931.4

 
—

 
297.5

 
—

 
16,722.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,497.8

 
$
4,870.8

 
$
2,062.1

 
$
32.3

 
$
845.6

 
$
(72.2
)
 
$
19,236.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
3.5

 
$
—

 
$
—

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.

Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Indiana Michigan Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,269.8

 
$
1,066.4

 
$
27.7

 
$
558.8

 
$
10.6

 
$
—

 
$
3,933.3

Other Operating Segments
20.6

 
20.0

 
128.4

 
32.6

 
15.9

 
(217.5
)
 
—

Total Revenues
$
2,290.4

 
$
1,086.4

 
$
156.1

 
$
591.4

 
$
26.5

 
$
(217.5
)
 
$
3,933.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
220.5

 
$
119.1

 
$
72.8

 
$
186.2

 
$
(4.4
)
 
$
—

 
$
594.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,218.1

 
$
1,077.3

 
$
29.3

 
$
713.9

 
$
6.3

 
$
—

 
$
4,044.9

Other Operating Segments
27.5

 
19.5

 
59.3

 
34.1

 
18.1

 
(158.5
)
 
—

Total Revenues
$
2,245.6

 
$
1,096.8

 
$
88.6

 
$
748.0

 
$
24.4

 
$
(158.5
)
 
$
4,044.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
278.7

 
$
107.5

 
$
44.7

 
$
70.7

 
$
1.5

 
$
—

 
$
503.1

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,780.5

 
$
14,990.4

 
$
5,665.4

 
$
483.7

 
$
357.2

 
$
(366.7
)
(b)
$
62,910.5

Accumulated Depreciation and Amortization
 
12,712.9

 
3,697.8

 
120.7

 
140.4

 
188.7

 
(186.3
)
(b)
16,674.2

Total Property Plant and Equipment - Net
 
$
29,067.6

 
$
11,292.6

 
$
5,544.7

 
$
343.3

 
$
168.5

 
$
(180.4
)
(b)
$
46,236.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
9.7

 
$
—

 
$
—

 
$
9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,562.2

 
$
14,813.5

 
$
6,721.4

 
$
2,194.9

 
$
21,233.1

 
$
(20,796.8
)
(b) (c)
$
61,728.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,518.9

 
$
316.4

 
$
130.7

 
$
0.1

 
$
548.1

 
$
—

 
$
2,514.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
9,938.9

 
4,554.4

 
1,931.4

 
—

 
297.5

 
—

 
16,722.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,497.8

 
$
4,870.8

 
$
2,062.1

 
$
32.3

 
$
845.6

 
$
(72.2
)
 
$
19,236.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
3.5

 
$
—

 
$
—

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.

Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Ohio Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,269.8

 
$
1,066.4

 
$
27.7

 
$
558.8

 
$
10.6

 
$
—

 
$
3,933.3

Other Operating Segments
20.6

 
20.0

 
128.4

 
32.6

 
15.9

 
(217.5
)
 
—

Total Revenues
$
2,290.4

 
$
1,086.4

 
$
156.1

 
$
591.4

 
$
26.5

 
$
(217.5
)
 
$
3,933.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
220.5

 
$
119.1

 
$
72.8

 
$
186.2

 
$
(4.4
)
 
$
—

 
$
594.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,218.1

 
$
1,077.3

 
$
29.3

 
$
713.9

 
$
6.3

 
$
—

 
$
4,044.9

Other Operating Segments
27.5

 
19.5

 
59.3

 
34.1

 
18.1

 
(158.5
)
 
—

Total Revenues
$
2,245.6

 
$
1,096.8

 
$
88.6

 
$
748.0

 
$
24.4

 
$
(158.5
)
 
$
4,044.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
278.7

 
$
107.5

 
$
44.7

 
$
70.7

 
$
1.5

 
$
—

 
$
503.1

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,780.5

 
$
14,990.4

 
$
5,665.4

 
$
483.7

 
$
357.2

 
$
(366.7
)
(b)
$
62,910.5

Accumulated Depreciation and Amortization
 
12,712.9

 
3,697.8

 
120.7

 
140.4

 
188.7

 
(186.3
)
(b)
16,674.2

Total Property Plant and Equipment - Net
 
$
29,067.6

 
$
11,292.6

 
$
5,544.7

 
$
343.3

 
$
168.5

 
$
(180.4
)
(b)
$
46,236.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
9.7

 
$
—

 
$
—

 
$
9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,562.2

 
$
14,813.5

 
$
6,721.4

 
$
2,194.9

 
$
21,233.1

 
$
(20,796.8
)
(b) (c)
$
61,728.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,518.9

 
$
316.4

 
$
130.7

 
$
0.1

 
$
548.1

 
$
—

 
$
2,514.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
9,938.9

 
4,554.4

 
1,931.4

 
—

 
297.5

 
—

 
16,722.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,497.8

 
$
4,870.8

 
$
2,062.1

 
$
32.3

 
$
845.6

 
$
(72.2
)
 
$
19,236.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
3.5

 
$
—

 
$
—

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.

Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Public Service Co Of Oklahoma [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,269.8

 
$
1,066.4

 
$
27.7

 
$
558.8

 
$
10.6

 
$
—

 
$
3,933.3

Other Operating Segments
20.6

 
20.0

 
128.4

 
32.6

 
15.9

 
(217.5
)
 
—

Total Revenues
$
2,290.4

 
$
1,086.4

 
$
156.1

 
$
591.4

 
$
26.5

 
$
(217.5
)
 
$
3,933.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
220.5

 
$
119.1

 
$
72.8

 
$
186.2

 
$
(4.4
)
 
$
—

 
$
594.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,218.1

 
$
1,077.3

 
$
29.3

 
$
713.9

 
$
6.3

 
$
—

 
$
4,044.9

Other Operating Segments
27.5

 
19.5

 
59.3

 
34.1

 
18.1

 
(158.5
)
 
—

Total Revenues
$
2,245.6

 
$
1,096.8

 
$
88.6

 
$
748.0

 
$
24.4

 
$
(158.5
)
 
$
4,044.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
278.7

 
$
107.5

 
$
44.7

 
$
70.7

 
$
1.5

 
$
—

 
$
503.1

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,780.5

 
$
14,990.4

 
$
5,665.4

 
$
483.7

 
$
357.2

 
$
(366.7
)
(b)
$
62,910.5

Accumulated Depreciation and Amortization
 
12,712.9

 
3,697.8

 
120.7

 
140.4

 
188.7

 
(186.3
)
(b)
16,674.2

Total Property Plant and Equipment - Net
 
$
29,067.6

 
$
11,292.6

 
$
5,544.7

 
$
343.3

 
$
168.5

 
$
(180.4
)
(b)
$
46,236.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
9.7

 
$
—

 
$
—

 
$
9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,562.2

 
$
14,813.5

 
$
6,721.4

 
$
2,194.9

 
$
21,233.1

 
$
(20,796.8
)
(b) (c)
$
61,728.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,518.9

 
$
316.4

 
$
130.7

 
$
0.1

 
$
548.1

 
$
—

 
$
2,514.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
9,938.9

 
4,554.4

 
1,931.4

 
—

 
297.5

 
—

 
16,722.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,497.8

 
$
4,870.8

 
$
2,062.1

 
$
32.3

 
$
845.6

 
$
(72.2
)
 
$
19,236.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
3.5

 
$
—

 
$
—

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.

Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.
Southwestern Electric Power Co [Member]  
Business Segments
BUSINESS SEGMENTS

The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•
Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•
Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by OPCo and AEP Texas.
•
OPCo purchases energy and capacity to serve SSO customers and provides transmission and distribution services for all connected load.
•
With the merger of TCC and TNC into AEP Utilities, Inc. to form AEP Texas, the Transmission and Distribution segment now includes certain activities related to the former AEP Utilities, Inc. that had been included in Corporate and Other.

AEP Transmission Holdco

•
Development, construction and operation of transmission facilities through investments in AEP’s wholly-owned transmission-only subsidiaries and transmission-only joint ventures. These investments have PUCT-approved or FERC-approved returns on equity.

Generation & Marketing

•
Competitive generation in ERCOT and PJM.
•
Marketing, risk management and retail activities in ERCOT, PJM, SPP and MISO.
•
Contracted renewable energy investments and management services.

The remainder of AEP’s activities is presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
The tables below present AEP’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016. These amounts include certain estimates and allocations where necessary.
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2017
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,269.8

 
$
1,066.4

 
$
27.7

 
$
558.8

 
$
10.6

 
$
—

 
$
3,933.3

Other Operating Segments
20.6

 
20.0

 
128.4

 
32.6

 
15.9

 
(217.5
)
 
—

Total Revenues
$
2,290.4

 
$
1,086.4

 
$
156.1

 
$
591.4

 
$
26.5

 
$
(217.5
)
 
$
3,933.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
220.5

 
$
119.1

 
$
72.8

 
$
186.2

 
$
(4.4
)
 
$
—

 
$
594.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling Adjustments
 
Consolidated
 
(in millions)
Three Months Ended 
 March 31, 2016
 

 
 

 
 

 
 

 
 

 
 
 
 

Revenues from:
 

 
 

 
 

 
 

 
 

 
 
 
 

External Customers
$
2,218.1

 
$
1,077.3

 
$
29.3

 
$
713.9

 
$
6.3

 
$
—

 
$
4,044.9

Other Operating Segments
27.5

 
19.5

 
59.3

 
34.1

 
18.1

 
(158.5
)
 
—

Total Revenues
$
2,245.6

 
$
1,096.8

 
$
88.6

 
$
748.0

 
$
24.4

 
$
(158.5
)
 
$
4,044.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
278.7

 
$
107.5

 
$
44.7

 
$
70.7

 
$
1.5

 
$
—

 
$
503.1

 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,780.5

 
$
14,990.4

 
$
5,665.4

 
$
483.7

 
$
357.2

 
$
(366.7
)
(b)
$
62,910.5

Accumulated Depreciation and Amortization
 
12,712.9

 
3,697.8

 
120.7

 
140.4

 
188.7

 
(186.3
)
(b)
16,674.2

Total Property Plant and Equipment - Net
 
$
29,067.6

 
$
11,292.6

 
$
5,544.7

 
$
343.3

 
$
168.5

 
$
(180.4
)
(b)
$
46,236.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
9.7

 
$
—

 
$
—

 
$
9.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,562.2

 
$
14,813.5

 
$
6,721.4

 
$
2,194.9

 
$
21,233.1

 
$
(20,796.8
)
(b) (c)
$
61,728.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,518.9

 
$
316.4

 
$
130.7

 
$
0.1

 
$
548.1

 
$
—

 
$
2,514.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
40.0

 
—

 
—

 
32.2

 
—

 
(72.2
)
 
—

Non-Affiliated
 
9,938.9

 
4,554.4

 
1,931.4

 
—

 
297.5

 
—

 
16,722.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,497.8

 
$
4,870.8

 
$
2,062.1

 
$
32.3

 
$
845.6

 
$
(72.2
)
 
$
19,236.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
3.5

 
$
—

 
$
—

 
$
3.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vertically Integrated Utilities
 
Transmission and Distribution Utilities
 
AEP Transmission Holdco
 
Generation
&
Marketing
 
Corporate and Other (a)
 
Reconciling
Adjustments
 
Consolidated
 
 
(in millions)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Total Property, Plant and Equipment
 
$
41,552.6

 
$
14,762.2

 
$
5,354.0

 
$
364.7

 
$
356.6

 
$
(353.5
)
(b)
$
62,036.6

Accumulated Depreciation and Amortization
 
12,596.7

 
3,655.0

 
101.4

 
42.2

 
186.0

 
(184.0
)
(b)
16,397.3

Total Property Plant and Equipment - Net
 
$
28,955.9

 
$
11,107.2

 
$
5,252.6

 
$
322.5

 
$
170.6

 
$
(169.5
)
(b)
$
45,639.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held for Sale
 
$
—

 
$
—

 
$
—

 
$
1,951.2

 
$
—

 
$
—

 
$
1,951.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
37,428.3

 
$
14,802.4

 
$
6,384.8

 
$
3,386.1

 
$
20,354.8

 
$
(18,888.7
)
(b) (c)
$
63,467.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt Due Within One Year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Affiliated
 
$
1,519.9

 
$
309.4

 
$
—

 
$
500.1

 
$
548.6

 
$
—

 
$
2,878.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliated
 
20.0

 
—

 
—

 
32.2

 
—

 
(52.2
)
 
—

Non-Affiliated
 
10,353.3

 
4,672.2

 
2,055.7

 
—

 
297.2

 
—

 
17,378.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Long-term Debt
 
$
11,893.2

 
$
4,981.6

 
$
2,055.7

 
$
532.3

 
$
845.8

 
$
(52.2
)
 
$
20,256.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities Held for Sale
 
$
—

 
$
—

 
$
—

 
$
235.9

 
$
—

 
$
—

 
$
235.9


(a)
Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
(b)
Includes eliminations due to an intercompany capital lease.
(c)
Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP’s investments in subsidiary companies.

Registrant Subsidiaries’ Reportable Segments

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an electricity transmission and distribution business for OPCo.  The Registrant Subsidiaries’ other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.