Rate Matters (Tables)

6 Months Ended

Jun. 30, 2018

Regulatory Assets Pending Final Regulatory Approval

	AEP
	June 30,		December 31,
	2018		2017
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	$	50.3	$	50.3
Other Regulatory Assets Pending Final Regulatory Approval	16.3		9.6
Regulatory Assets Currently Not Earning a Return
Storm Related Costs (a)	146.0		128.0
Plant Retirement Costs - Asset Retirement Obligation Costs	39.7		39.7
Cook Plant Uprate Project	—		36.3
Cook Plant Turbine	—		15.9
Other Regulatory Assets Pending Final Regulatory Approval	17.8		42.2
Total Regulatory Assets Pending Final Regulatory Approval (b)	$	270.1	$	322.0

(a) As of June 30, 2018, AEP Texas has deferred $121 million related to Hurricane Harvey and will request securitization of the regulatory asset.

(b) In 2015, APCo recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates. In 2017, the Virginia SCC staff requested that APCo prepare a depreciation study as of December 31, 2017 and submit that study to the Virginia SCC staff in 2018. In June 2018, APCo submitted the new depreciation study, based on December 31, 2017 property balances, to the Virginia SCC staff.

	AEP Texas
	June 30,		December 31,
	2018		2017
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (a)	$	144.5	$	123.3
Rate Case Expense	0.2		0.1
Total Regulatory Assets Pending Final Regulatory Approval	$	144.7	$	123.4

(a) As of June 30, 2018, AEP Texas has deferred $121 million related to Hurricane Harvey and will request securitization of the regulatory asset.

	APCo
	June 30,		December 31,
	2018		2017
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Materials and Supplies	$	9.0	$	9.1
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs	39.7		39.7
Other Regulatory Assets Pending Final Regulatory Approval	0.6		0.6
Total Regulatory Assets Pending Final Regulatory Approval (a)	$	49.3	$	49.4

(a) In 2015, APCo recorded a $91 million reduction to accumulated depreciation related to the remaining net book value of plants retired in 2015, primarily in its Virginia jurisdiction. These plants were normal retirements at the end of their depreciable lives under the group composite method of depreciation. APCo’s recovery of the remaining Virginia net book value for the retired plants will be considered in the Virginia SCC’s 2020 triennial review of APCo’s generation and distribution base rates. In 2017, the Virginia SCC staff requested that APCo prepare a depreciation study as of December 31, 2017 and submit that study to the Virginia SCC staff in 2018. In June 2018, APCo submitted the new depreciation study, based on December 31, 2017 property balances, to the Virginia SCC staff.

	I&M
	June 30,		December 31,
	2018		2017
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Cook Plant Uprate Project	$	—	$	36.3
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	—		14.7
Cook Plant Turbine	—		15.9
Rockport Dry Sorbent Injection System - Indiana	—		10.4
Other Regulatory Assets Pending Final Regulatory Approval	3.3		2.0
Total Regulatory Assets Pending Final Regulatory Approval	$	3.3	$	79.3

	PSO
	June 30,		December 31,
	2018		2017
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	$	—	$	3.2
Other Regulatory Assets Pending Final Regulatory Approval	0.3		0.1
Total Regulatory Assets Pending Final Regulatory Approval	$	0.3	$	3.3

	SWEPCo
	June 30,		December 31,
	2018		2017
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	$	50.3	$	50.3
Other Regulatory Assets Pending Final Regulatory Approval	0.5		0.5
Regulatory Assets Currently Not Earning a Return
Asset Retirement Obligation - Arkansas, Louisiana	4.7		4.0
Rate Case Expense - Texas	4.5		4.3
Shipe Road Transmission Project - FERC	—		3.3
Other Regulatory Assets Pending Final Regulatory Approval	3.0		2.5
Total Regulatory Assets Pending Final Regulatory Approval	$	63.0	$	64.9