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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2023
Book Values and Fair Values of Long-term Debt
March 31, 2023December 31, 2022
CompanyBook ValueFair ValueBook ValueFair Value
(in millions)
AEP (a)$39,144.2 $36,126.4 $36,801.0 $32,915.9 
AEP Texas5,522.0 5,009.5 5,657.8 5,045.8 
AEPTCo5,472.1 4,836.2 4,782.8 3,940.5 
APCo5,398.7 5,227.7 5,410.5 5,079.2 
I&M3,489.0 3,249.1 3,260.8 2,929.0 
OPCo2,970.8 2,566.6 2,970.3 2,516.6 
PSO2,383.6 2,172.6 1,912.8 1,635.8 
SWEPCo3,644.8 3,195.9 3,391.6 2,870.9 
(a)The fair value amounts include debt related to AEP’s Equity Units and had a fair value of $856 million and $877 million as of March 31, 2023 and December 31, 2022, respectively. See “Equity Units” section of Note 12 for additional information.
Other Temporary Investments
March 31, 2023
GrossGross
UnrealizedUnrealizedFair
Other Temporary Investments and Restricted CashCostGainsLossesValue
(in millions)
Restricted Cash (a)$50.0 $— $— $50.0 
Other Cash Deposits11.4 — — 11.4 
Fixed Income Securities – Mutual Funds (b)153.4 — (7.2)146.2 
Equity Securities – Mutual Funds15.2 21.8 — 37.0 
Total Other Temporary Investments and Restricted Cash$230.0 $21.8 $(7.2)$244.6 
December 31, 2022
GrossGross
UnrealizedUnrealizedFair
Other Temporary Investments and Restricted CashCostGainsLossesValue
(in millions)
Restricted Cash (a)$47.1 $— $— $47.1 
Other Cash Deposits9.0 — — 9.0 
Fixed Income Securities – Mutual Funds (b)152.4 — (8.3)144.1 
Equity Securities – Mutual Funds15.1 19.4 — 34.5 
Total Other Temporary Investments and Restricted Cash$223.6 $19.4 $(8.3)$234.7 

(a)Primarily represents amounts held for the repayment of debt.
(b)Primarily short and intermediate maturities which may be sold and do not contain maturity dates.
Debt and Equity Securities Within Other Temporary Investments
 Three Months Ended March 31,
 20232022
(in millions)
Proceeds from Investment Sales$— $3.9 
Purchases of Investments1.0 0.8 
Gross Realized Gains on Investment Sales— 0.3 
Gross Realized Losses on Investment Sales— 0.1 
Nuclear Trust Fund Investments
 March 31, 2023December 31, 2022
GrossGrossOther-Than-GrossGrossOther-Than-
FairUnrealizedUnrealizedTemporaryFairUnrealizedUnrealizedTemporary
ValueGainsLossesImpairmentsValueGainsLossesImpairments
(in millions)
Cash and Cash Equivalents$26.5 $— $— $— $21.2 $— $— $— 
Fixed Income Securities:
United States Government1,207.6 20.9 (6.4)(28.3)1,123.8 11.8 (14.9)(18.8)
Corporate Debt66.0 1.0 (6.1)(2.2)61.6 0.7 (7.7)(9.6)
State and Local Government3.3 — — — 3.3 0.1 — (0.1)
Subtotal Fixed Income Securities1,276.9 21.9 (12.5)(30.5)1,188.7 12.6 (22.6)(28.5)
Equity Securities - Domestic2,197.7 1,565.1 (2.9)— 2,131.3 1,483.7 (6.4)— 
Spent Nuclear Fuel and Decommissioning Trusts$3,501.1 $1,587.0 $(15.4)$(30.5)$3,341.2 $1,496.3 $(29.0)$(28.5)
Securities Activity Within the Decommissioning and SNF Trusts
Three Months Ended March 31,
 20232022
 (in millions)
Proceeds from Investment Sales$517.6 $493.5 
Purchases of Investments536.3 507.7 
Gross Realized Gains on Investment Sales48.5 5.8 
Gross Realized Losses on Investment Sales8.6 7.2 
Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts
Fair Value of Fixed
Income Securities
(in millions)
Within 1 year$347.8 
After 1 year through 5 years489.1 
After 5 years through 10 years215.6 
After 10 years224.4 
Total$1,276.9 
Fair Value, Assets and Liabilities Measured on Recurring Basis
AEP

Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Other Temporary Investments and Restricted Cash
Restricted Cash$50.0 $— $— $— $50.0 
Other Cash Deposits (a)— — — 11.4 11.4 
Fixed Income Securities – Mutual Funds146.2 — — — 146.2 
Equity Securities – Mutual Funds (b)37.0 — — — 37.0 
Total Other Temporary Investments and Restricted Cash233.2 — — 11.4 244.6 
Risk Management Assets
Risk Management Commodity Contracts (c) (d)13.0 861.2 209.2 (720.2)363.2 
Cash Flow Hedges:
Commodity Hedges (c)— 177.8 20.3 (61.4)136.7 
Interest Rate Hedges— 8.9 — — 8.9 
Total Risk Management Assets13.0 1,047.9 229.5 (781.6)508.8 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)17.1 — — 9.4 26.5 
Fixed Income Securities:
United States Government— 1,207.6 — — 1,207.6 
Corporate Debt— 66.0 — — 66.0 
State and Local Government— 3.3 — — 3.3 
Subtotal Fixed Income Securities— 1,276.9 — — 1,276.9 
Equity Securities – Domestic (b)2,197.7 — — — 2,197.7 
Total Spent Nuclear Fuel and Decommissioning Trusts2,214.8 1,276.9 — 9.4 3,501.1 
Total Assets$2,461.0 $2,324.8 $229.5 $(760.8)$4,254.5 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (d)$33.5 $721.1 $178.5 $(627.5)$305.6 
Cash Flow Hedges:
Commodity Hedges (c)— 109.1 5.9 (61.4)53.6 
Interest Rate Hedges— 1.7 — — 1.7 
Fair Value Hedges— 120.5 — — 120.5 
Total Risk Management Liabilities$33.5 $952.4 $184.4 $(688.9)$481.4 
AEP

Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Other Temporary Investments and Restricted Cash
Restricted Cash$47.1 $— $— $— $47.1 
Other Cash Deposits (a)— — — 9.0 9.0 
Fixed Income Securities – Mutual Funds144.1 — — — 144.1 
Equity Securities – Mutual Funds (b)34.5 — — — 34.5 
Total Other Temporary Investments and Restricted Cash225.7 — — 9.0 234.7 
Risk Management Assets
Risk Management Commodity Contracts (c) (f)15.0 1,197.5 314.4 (1,211.5)315.4 
Cash Flow Hedges:
Commodity Hedges (c)— 332.6 26.7 (52.8)306.5 
Interest Rate Hedges— 11.0 — — 11.0 
Total Risk Management Assets15.0 1,541.1 341.1 (1,264.3)632.9 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)11.3 — — 9.9 21.2 
Fixed Income Securities:
United States Government— 1,123.8 — — 1,123.8 
Corporate Debt— 61.6 — — 61.6 
State and Local Government— 3.3 — — 3.3 
Subtotal Fixed Income Securities— 1,188.7 — — 1,188.7 
Equity Securities – Domestic (b)2,131.3 — — — 2,131.3 
Total Spent Nuclear Fuel and Decommissioning Trusts2,142.6 1,188.7 — 9.9 3,341.2 
Total Assets$2,383.3 $2,729.8 $341.1 $(1,245.4)$4,208.8 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (f)$21.8 $870.9 $179.0 $(731.9)$339.8 
Cash Flow Hedges:
Commodity Hedges (c)— 74.3 1.7 (52.8)23.2 
Fair Value Hedges— 127.4 — — 127.4 
Total Risk Management Liabilities$21.8 $1,072.6 $180.7 $(784.7)$490.4 
AEP Texas
Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$42.5 $— $— $— $42.5 
Risk Management Assets     
Cash Flow Hedges:
Interest Rate Hedges— 0.5 — — 0.5 
Total Assets$42.5 $0.5 $— $— $43.0 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $0.4 $— $(0.4)$— 
Cash Flow Hedges:
Interest Rate Hedges— 0.8 — — 0.8 
Total Liabilities$— $1.2 $— $(0.4)$0.8 

December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$32.7 $— $— $— $32.7 
APCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$7.5 $— $— $— $7.5 
Risk Management Assets
Risk Management Commodity Contracts (c) (g)— 0.4 12.4 (0.4)12.4 
Total Assets$7.5 $0.4 $12.4 $(0.4)$19.9 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $0.9 $6.7 $(0.6)$7.0 

December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$14.4 $— $— $— $14.4 
Risk Management Assets
Risk Management Commodity Contracts (c) (g)— 0.7 69.4 (1.0)69.1 
Total Assets$14.4 $0.7 $69.4 $(1.0)$83.5 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $4.6 $0.3 $(1.4)$3.5 
I&M
Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)$— $6.6 $1.6 $(1.2)$7.0 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)17.1 — — 9.4 26.5 
Fixed Income Securities:
United States Government— 1,207.6 — — 1,207.6 
Corporate Debt— 66.0 — — 66.0 
State and Local Government— 3.3 — — 3.3 
Subtotal Fixed Income Securities— 1,276.9 — — 1,276.9 
Equity Securities - Domestic (b)2,197.7 — — — 2,197.7 
Total Spent Nuclear Fuel and Decommissioning Trusts2,214.8 1,276.9 — 9.4 3,501.1 
Total Assets$2,214.8 $1,283.5 $1.6 $8.2 $3,508.1 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $1.3 $0.5 $(1.4)$0.4 

December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)$— $11.3 $5.3 $(1.2)$15.4 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)11.3 — — 9.9 21.2 
Fixed Income Securities:
United States Government— 1,123.8 — — 1,123.8 
Corporate Debt— 61.6 — — 61.6 
State and Local Government— 3.3 — — 3.3 
Subtotal Fixed Income Securities— 1,188.7 — — 1,188.7 
Equity Securities - Domestic (b)2,131.3 — — — 2,131.3 
Total Spent Nuclear Fuel and Decommissioning Trusts2,142.6 1,188.7 — 9.9 3,341.2 
Total Assets$2,142.6 $1,200.0 $5.3 $8.7 $3,356.6 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $0.6 $0.7 $(1.3)$— 
OPCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets     
Risk Management Commodity Contracts (g)$— $— $— $— $— 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $0.2 $46.9 $(0.2)$46.9 

December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (g)$— $— $— $— $— 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $— $40.0 $(0.3)$39.7 

PSO
Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)$— $— $9.9 $(0.5)$9.4 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $1.2 $0.6 $(0.7)$1.1 

December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)$— $— $24.0 $1.3 $25.3 
Cash Flow Hedges:
Interest Rate Hedges— 1.6 — (1.6)— 
Total Assets$— $1.6 $24.0 $(0.3)$25.3 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $1.7 $0.3 $(0.4)$1.6 
SWEPCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis
March 31, 2023
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)$— $— $6.4 $(0.1)$6.3 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $0.8 $0.6 $(0.3)$1.1 

December 31, 2022
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c) (g)$— $2.2 $14.6 $(0.4)$16.4 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (g)$— $1.6 $0.4 $(0.6)$1.4 

(a)Amounts in “Other’’ column primarily represent cash deposits in bank accounts with financial institutions or third-parties.  Level 1 and Level 2 amounts primarily represent investments in money market funds.
(b)Amounts represent publicly traded equity securities and equity-based mutual funds.
(c)Amounts in “Other’’ column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.’’
(d)The March 31, 2023 maturities of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), were as follows: Level 1 matures $(14) million in 2023 and $(6) million in periods 2024-2026; Level 2 matures $24 million in 2023, $105 million in periods 2024-2026, $9 million in periods 2027-2028 and $1 million in periods 2029-2033; Level 3 matures $18 million in 2023, $9 million in periods 2024-2026, $11 million in periods 2027-2028 and $(7) million in periods 2029-2033.  Risk management commodity contracts are substantially comprised of power contracts.
(e)Amounts in “Other’’ column primarily represent accrued interest receivables from financial institutions.  Level 1 amounts primarily represent investments in money market funds.
(f)The December 31, 2022 maturities of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), were as follows: Level 1 matures $(7) million in 2023; Level 2 matures $182 million in 2023, $134 million in periods 2024-2026, $10 million in periods 2027-2028 and $1 million in periods 2029-2033; Level 3 matures $128 million in 2023, $6 million in periods 2024-2026, $6 million in periods 2027-2028 and $(5) million in periods 2029-2033.  Risk management commodity contracts are substantially comprised of power contracts.
(g)Substantially comprised of power contracts for the Registrant Subsidiaries.
Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended March 31, 2023AEPAPCoI&MOPCoPSOSWEPCo
 (in millions)
Balance as of December 31, 2022$160.4 $69.1 $4.6 $(40.0)$23.7 $14.2 
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
(7.1)(31.9)1.2 (1.3)16.6 12.9 
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
14.8 — — — — — 
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)(13.9)— — — — — 
Settlements(96.6)(27.3)(4.2)1.0 (34.3)(23.0)
Transfers into Level 3 (d) (e)(6.1)— — — — — 
Transfers out of Level 3 (e)1.0 — — — — — 
Changes in Fair Value Allocated to Regulated Jurisdictions (f)
(7.4)(4.2)(0.5)(6.6)3.3 1.7 
Balance as of March 31, 2023$45.1 $5.7 $1.1 $(46.9)$9.3 $5.8 
Three Months Ended March 31, 2022AEPAPCoI&MOPCoPSOSWEPCo
 (in millions)
Balance as of December 31, 2021$103.1 $41.7 $(0.7)$(92.5)$12.1 $10.9 
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
18.2 (2.9)3.8 0.5 12.1 9.8 
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
(19.0)— — — — — 
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)
19.3 — — — — — 
Settlements(51.6)(32.4)(2.3)1.4 (19.8)(16.2)
Transfers into Level 3 (d) (e)2.5 — — — — — 
Transfers out of Level 3 (e)2.9 — — — — — 
Changes in Fair Value Allocated to Regulated Jurisdictions (f)
7.4 0.2 0.2 22.1 2.1 11.2 
Balance as of March 31, 2022$82.8 $6.6 $1.0 $(68.5)$6.5 $15.7 

(a)Included in revenues on the statements of income.
(b)Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
(c)Included in cash flow hedges on the statements of comprehensive income.
(d)Represents existing assets or liabilities that were previously categorized as Level 2.
(e)Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
(f)Relates to the net gains (losses) of those contracts that are not reflected on the statements of income.  These changes in fair value are recorded as regulatory liabilities for net gains and as regulatory assets for net losses or accounts payable.
Significant Unobservable Inputs for Level 3
AEP
Significant Unobservable Inputs
March 31, 2023
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
Energy Contracts$190.7 $166.5 Discounted Cash FlowForward Market Price$0.74 $101.65 $48.48 
FTRs38.8 17.9 Discounted Cash FlowForward Market Price(55.98)101.82 (0.45)
Total$229.5 $184.4 

December 31, 2022
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
Energy Contracts$204.0 $167.4 Discounted Cash FlowForward Market Price$2.91$187.34 $49.14 
FTRs137.1 13.3 Discounted Cash FlowForward Market Price(36.45)20.721.18 
Total$341.1 $180.7 
APCo
Significant Unobservable Inputs
March 31, 2023
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$12.4 $6.7 
Discounted Cash Flow
Forward Market Price
$(1.67)$6.59 $0.79 

December 31, 2022
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$69.4 $0.3 
Discounted Cash Flow
Forward Market Price
$(2.82)$18.88 $3.89 

I&M
Significant Unobservable Inputs
March 31, 2023
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$1.6 $0.5 
Discounted Cash Flow
Forward Market Price
$0.24 $4.75 $0.78 

December 31, 2022
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$5.3 $0.7 
Discounted Cash Flow
Forward Market Price
$0.16 $18.79 $1.23 
OPCo
Significant Unobservable Inputs
March 31, 2023
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
Energy Contracts$— $46.9 
Discounted Cash Flow
Forward Market Price
$14.41 $79.98 $45.92 

December 31, 2022
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
Energy Contracts$— $40.0 
Discounted Cash Flow
Forward Market Price
$2.91 $187.34 $48.76 

PSO
Significant Unobservable Inputs
March 31, 2023
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$9.9 $0.6 
Discounted Cash Flow
Forward Market Price
$(21.10)$3.04 $(4.75)

December 31, 2022
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$24.0 $0.3 
Discounted Cash Flow
Forward Market Price
$(36.45)$3.40 $(7.55)
SWEPCo
Significant Unobservable Inputs
March 31, 2023
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$6.4 $0.6 
Discounted Cash Flow
Forward Market Price$(21.10)$3.04 $(4.75)

December 31, 2022
SignificantInput/Range
Fair ValueValuationUnobservableWeighted
AssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
FTRs$14.6 $0.4 
Discounted Cash Flow
Forward Market Price$(36.45)$3.40 $(7.55)

(a)Represents market prices in dollars per MWh.
(b)The weighted average is the product of the forward market price of the underlying commodity and volume weighted by term.
Sensitivity of Fair Value Measurements
Uncertainty of Fair Value Measurements
Significant Unobservable InputPositionChange in InputImpact on Fair Value
Measurement
Forward Market Price
Buy
Increase (Decrease)Higher (Lower)
Forward Market PriceSellIncrease (Decrease)Lower (Higher)