41287104298204129953010105130116313106131103732410713210483351081331059346109134106103571101351071136811113610812379112137109R060029133810113138110143911114139111115122115112163131164113171141172114183151184115195161196116207171208117211818121191182220191223119O2342012351202462110112472220125823112592422632510212632620227427312752810328629203303132333435363738393345678910111213141516171819202122232425 R060029 0-39 2018-01-01 2018-12-31 R060029 0-23 2018-01-01 2018-12-31 R060029 0-8 2018-01-01 2018-12-31 R060029 0-12 2018-12-31 R060029 0-2 2018-01-01 2018-12-31 R060029 1-16 2018-01-01 2018-12-31 R060029 1-10 2018-01-01 2018-12-31 R060029 0-10 2018-01-01 2018-12-31 R060029 0-15 2018-01-01 2018-12-31 R060029 0-33 2018-01-01 2018-12-31 R060029 0-5 2018-01-01 2018-12-31 R060029 1-5 2018-01-01 2018-12-31 R060029 0-19 2018-12-31 R060029 0-7 2018-01-01 2018-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 0-10 2018-12-31 R060029 0-19 2018-01-01 2018-12-31 R060029 0-2 2018-01-01 2018-12-31 R060029 0-8 2018-01-01 2018-12-31 R060029 0-13 2018-01-01 2018-12-31 R060029 0-3 2018-12-31 R060029 1-6 2018-01-01 2018-12-31 R060029 0-30 2018-01-01 2018-12-31 R060029 1-2 2018-01-01 2018-12-31 R060029 0-17 2018-12-31 R060029 0-19 2018-01-01 2018-12-31 R060029 0-4 2018-12-31 R060029 0-4 2018-12-31 R060029 0-18 2017-12-31 R060029 1-6 2018-12-31 R060029 0-17 2018-01-01 2018-12-31 R060029 0-19 2017-12-31 R060029 0-6 2018-01-01 2018-12-31 R060029 0-11 2018-12-31 R060029 1-3 2018-12-31 R060029 1-31 2018-01-01 2018-12-31 R060029 0-16 2018-01-01 2018-12-31 R060029 0-11 2018-12-31 R060029 1-28 2018-01-01 2018-12-31 R060029 1-14 2018-12-31 R060029 0-23 2018-01-01 2018-12-31 R060029 1-25 2018-01-01 2018-12-31 R060029 1-3 2018-01-01 2018-12-31 R060029 0-36 2018-12-31 R060029 0-20 2018-12-31 R060029 1-9 2018-12-31 R060029 0-4 2017-12-31 R060029 1-17 2018-12-31 R060029 1-1 2018-01-01 2018-12-31 R060029 2018-12-31 R060029 1-30 2018-01-01 2018-12-31 R060029 0-15 2018-01-01 2018-12-31 R060029 0-35 2018-12-31 R060029 0-5 2018-01-01 2018-12-31 R060029 0-29 2018-01-01 2018-12-31 R060029 0-33 2018-01-01 2018-12-31 R060029 0-5 2018-01-01 2018-12-31 R060029 0-5 2018-01-01 2018-12-31 R060029 0-31 2018-01-01 2018-12-31 R060029 0-5 2018-12-31 R060029 1-7 2018-01-01 2018-12-31 R060029 0-38 2018-12-31 R060029 0-25 2018-01-01 2018-12-31 R060029 1-20 2018-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 0-25 2018-12-31 R060029 0-1 2018-01-01 2018-12-31 R060029 0-9 2018-12-31 R060029 0-10 2018-01-01 2018-12-31 R060029 0-22 2018-01-01 2018-12-31 R060029 2018-01-01 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 1-9 2018-01-01 2018-12-31 R060029 0-9 2017-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 0-8 2018-12-31 R060029 0-30 2018-01-01 2018-12-31 R060029 1-18 2018-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 1-36 2018-01-01 2018-12-31 R060029 0-12 2018-12-31 R060029 0-7 2018-12-31 R060029 0-8 2018-01-01 2018-12-31 R060029 1-15 2018-12-31 R060029 0-18 2018-01-01 2018-12-31 R060029 2-1 2018-01-01 2018-12-31 R060029 0-2 2018-01-01 2018-12-31 R060029 0-23 2018-12-31 R060029 1-7 2018-01-01 2018-12-31 R060029 1-11 2018-12-31 R060029 0-32 2018-12-31 R060029 0-28 2018-12-31 R060029 0-4 2018-12-31 R060029 0-20 2018-01-01 2018-12-31 R060029 1-21 2018-01-01 2018-12-31 R060029 0-3 2018-12-31 R060029 0-9 2018-12-31 R060029 0-27 2018-01-01 2018-12-31 R060029 0-13 2018-12-31 R060029 1-34 2018-01-01 2018-12-31 R060029 0-19 2018-01-01 2018-12-31 R060029 0-36 2018-01-01 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 0-10 2018-01-01 2018-12-31 R060029 1-39 2018-01-01 2018-12-31 R060029 0-6 2018-01-01 2018-12-31 R060029 0-6 2018-12-31 R060029 0-9 2018-01-01 2018-12-31 R060029 2-4 2018-01-01 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 1-8 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 0-3 2018-12-31 R060029 0-31 2018-01-01 2018-12-31 R060029 0-6 2018-01-01 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 1-26 2018-01-01 2018-12-31 R060029 0-29 2018-12-31 R060029 0-32 2018-01-01 2018-12-31 R060029 0-7 2018-01-01 2018-12-31 R060029 1-3 2018-01-01 2018-12-31 R060029 0-19 2018-12-31 R060029 0-16 2018-12-31 R060029 0-28 2018-01-01 2018-12-31 R060029 0-20 2018-01-01 2018-12-31 R060029 1-4 2018-01-01 2018-12-31 R060029 0-5 2018-12-31 R060029 0-8 2017-12-31 R060029 0-9 2018-12-31 R060029 1-10 2018-01-01 2018-12-31 R060029 1-13 2018-01-01 2018-12-31 R060029 0-26 2018-01-01 2018-12-31 R060029 0-17 2018-01-01 2018-12-31 R060029 0-23 2018-01-01 2018-12-31 R060029 0-10 2018-12-31 R060029 0-14 2018-01-01 2018-12-31 R060029 0-6 2018-12-31 R060029 1-9 2018-01-01 2018-12-31 R060029 0-24 2018-01-01 2018-12-31 R060029 0-1 2018-01-01 2018-12-31 R060029 0-24 2018-01-01 2018-12-31 R060029 0-20 2018-01-01 2018-12-31 R060029 0-20 2018-01-01 2018-12-31 R060029 0-5 2018-12-31 R060029 0-14 2018-01-01 2018-12-31 R060029 0-18 2018-12-31 R060029 0-11 2018-01-01 2018-12-31 R060029 1-5 2018-12-31 R060029 0-20 2018-12-31 R060029 0-22 2018-01-01 2018-12-31 R060029 1-4 2018-01-01 2018-12-31 R060029 0-13 2018-12-31 R060029 2-2 2018-01-01 2018-12-31 R060029 0-17 2018-01-01 2018-12-31 R060029 0-22 2018-01-01 2018-12-31 R060029 1-16 2018-12-31 R060029 1-19 2018-01-01 2018-12-31 R060029 1-11 2018-01-01 2018-12-31 R060029 0-21 2018-01-01 2018-12-31 R060029 0-18 2018-01-01 2018-12-31 R060029 0-8 2018-12-31 R060029 1-27 2018-01-01 2018-12-31 R060029 1-4 2018-12-31 R060029 0-3 2018-12-31 R060029 1-38 2018-01-01 2018-12-31 R060029 0-19 2018-01-01 2018-12-31 R060029 0-30 2018-12-31 R060029 0-9 2018-12-31 R060029 0-34 2018-12-31 R060029 0-9 2018-01-01 2018-12-31 R060029 0-37 2018-01-01 2018-12-31 R060029 1-8 2018-01-01 2018-12-31 R060029 1-19 2018-01-01 2018-12-31 R060029 0-22 2018-12-31 R060029 0-11 2018-01-01 2018-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 0-12 2018-01-01 2018-12-31 R060029 1-15 2018-01-01 2018-12-31 R060029 0-8 2018-12-31 R060029 0-12 2018-01-01 2018-12-31 R060029 1-13 2018-12-31 R060029 2017-01-01 2017-12-31 R060029 0-9 2018-01-01 2018-12-31 R060029 2-3 2018-01-01 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 0-35 2018-01-01 2018-12-31 R060029 0-18 2018-12-31 R060029 1-20 2018-01-01 2018-12-31 R060029 0-29 2018-01-01 2018-12-31 R060029 0-7 2018-01-01 2018-12-31 R060029 0-27 2018-01-01 2018-12-31 R060029 1-32 2018-01-01 2018-12-31 R060029 0-8 2018-12-31 R060029 1-33 2018-01-01 2018-12-31 R060029 0-34 2018-01-01 2018-12-31 R060029 1-19 2018-12-31 R060029 0-9 2018-01-01 2018-12-31 R060029 1-11 2018-01-01 2018-12-31 R060029 0-8 2018-01-01 2018-12-31 R060029 0-20 2018-12-31 R060029 0-1 2018-01-01 2018-12-31 R060029 0-14 2018-01-01 2018-12-31 R060029 1-17 2018-01-01 2018-12-31 R060029 0-13 2018-01-01 2018-12-31 R060029 0-8 2018-01-01 2018-12-31 R060029 0-33 2018-12-31 R060029 0-6 2018-01-01 2018-12-31 R060029 0-18 2018-12-31 R060029 0-9 2018-01-01 2018-12-31 R060029 1-18 2018-01-01 2018-12-31 R060029 0-7 2018-12-31 R060029 1-12 2018-01-01 2018-12-31 R060029 1-14 2018-01-01 2018-12-31 R060029 0-15 2018-01-01 2018-12-31 R060029 0-32 2018-01-01 2018-12-31 R060029 0-39 2018-01-01 2018-12-31 R060029 1-12 2018-01-01 2018-12-31 R060029 0-16 2018-01-01 2018-12-31 R060029 0-19 2018-12-31 R060029 0-25 2018-01-01 2018-12-31 R060029 0-22 2018-12-31 R060029 0-16 2018-12-31 R060029 0-6 2018-01-01 2018-12-31 R060029 0-18 2018-01-01 2018-12-31 R060029 0-38 2018-01-01 2018-12-31 R060029 0-18 2018-01-01 2018-12-31 R060029 1-7 2018-12-31 R060029 0-3 2017-12-31 R060029 1-24 2018-01-01 2018-12-31 R060029 0-11 2018-01-01 2018-12-31 R060029 0-14 2018-12-31 R060029 1-20 2018-01-01 2018-12-31 R060029 0-15 2018-12-31 R060029 1-16 2018-01-01 2018-12-31 R060029 0-6 2018-12-31 R060029 0-17 2018-12-31 R060029 0-21 2018-01-01 2018-12-31 R060029 1-22 2018-01-01 2018-12-31 R060029 0-7 2018-01-01 2018-12-31 R060029 0-37 2018-01-01 2018-12-31 R060029 1-35 2018-01-01 2018-12-31 R060029 0-14 2018-12-31 R060029 0-27 2018-12-31 R060029 1-29 2018-01-01 2018-12-31 R060029 0-12 2018-01-01 2018-12-31 R060029 0-3 2018-01-01 2018-12-31 R060029 0-5 2018-01-01 2018-12-31 R060029 0-26 2018-12-31 R060029 0-7 2017-12-31 R060029 2017-12-31 R060029 0-3 2018-12-31 R060029 1-8 2018-01-01 2018-12-31 R060029 0-4 2018-01-01 2018-12-31 R060029 0-39 2018-12-31 R060029 0-7 2018-12-31 R060029 0-8 2018-01-01 2018-12-31 R060029 0-7 2018-01-01 2018-12-31 R060029 1-12 2018-12-31 R060029 1-18 2018-01-01 2018-12-31 R060029 0-5 2018-01-01 2018-12-31 R060029 0-25 2018-12-31 R060029 1-6 2018-01-01 2018-12-31 R060029 0-24 2018-12-31 R060029 0-36 2018-01-01 2018-12-31 R060029 1-13 2018-01-01 2018-12-31 R060029 0-7 2018-12-31 R060029 0-5 2018-12-31 R060029 0-6 2017-12-31 R060029 0-23 2018-12-31 R060029 0-37 2018-12-31 R060029 0-21 2018-01-01 2018-12-31 R060029 0-38 2018-01-01 2018-12-31 R060029 0-16 2018-01-01 2018-12-31 R060029 1-23 2018-01-01 2018-12-31 R060029 0-21 2018-12-31 R060029 0-24 2018-12-31 R060029 0-34 2018-01-01 2018-12-31 R060029 1-14 2018-01-01 2018-12-31 R060029 0-11 2018-12-31 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THIS FILING IS
Item 1:
An Initial (Original) Submission
OR
Resubmission No.

FERC FINANCIAL REPORT
FERC FORM No. 60: Annual Report
of Centralized Service Companies

This report is mandatory under the Public Utility Holding Company Act of 2005, Section 1270, Section 309 of the Federal Power Act and 18 C.F.R. § 366.23. Failure to report may result in criminal fines, civil penalties, and other sanctions as provided by law. The Federal Energy Regulatory Commission does not consider this report to be of a confidential nature.
Exact Legal Name of Respondent (Company)

American Electric Power Service Corporation
Year/Period of Report:

End of:
2018
/
Q4


GENERAL INSTRUCTIONS FOR FILING FERC FORM NO. 60

  1. Purpose

    Form No. 60 is an annual regulatory support requirement under 18 CFR 369.1for centralized service companies. The report is designed to collect financial information from centralized service companies subject to the jurisdiction of the Federal Energy Regulatory Commission. The report is considered to be a non-confidential public use form.
  2. Who Must Submit

    Unless the holding company system is exempted or granted a waiver by Commission rule or order pursuant to §§ 18 CFR 366.3 and 366.4 of this chapter, every centralized service company (see § 367.2) in a holding company system must prepare and file electronically with the Commission the FERC Form No. 60 then in effect pursuant to the General Instructions set out in this form.
  3. How to Submit

    Submit FERC Form No. 60 electronically through the Form No. 60 Submission Software. Retain one copy of each report for your files. For any resubmissions, submit the filing using the Form No. 60 Submission Software including a justification. Respondents must submit the Corporate Officer Certification electronically.
  4. When to Submit

    Submit FERC Form No. 60 according to the filing date contained § 18 CFR 369.1 of the Commission’s regulations.
  5. Preparation

    Prepare this report in conformity with the Uniform System of Accounts (18 CFR 367) (USof A). Interpret all accounting words and phrases in accordance with the USof A.
  6. Time Period

    This report covers the entire calendar year.
  7. Whole Dollar Usage

    Enter in whole numbers (dollars) only, except where otherwise noted. The amounts shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to determine significance for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year's amounts.
  8. Accurateness

    Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word "None" where it truly and completely states the fact.
  9. Applicability

    For any page(s) that is not applicable to the respondent, enter "NONE," or "Not Applicable" in column (c) on the List of Schedules, page 2.
  10. Date Format

    Enter the month, day, and year for all dates. Use customary abbreviations. The "Resubmission Date" included in the header of each page is to be completed only for resubmissions (see III. above).
  11. Number Format

    Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the expected sign must be reported by use of a minus sign.
  12. Required Entries

    Do not make references to reports of previous years or to other reports instead of required entries, except as specifically authorized.
  13. Prior Year References

    Wherever (schedule) pages refer to figures from a previous year, the figures reported must be based upon those shown by the report of the previous year, or an appropriate explanation given as to why the different figures were used.
  14. Where to Send Comments on Public Reporting Burden

    The public reporting burden for the Form No. 60 collection of information is estimated to average 75 hours per response, including

    • the time for reviewing instructions, searching existing data sources,
    • gathering and maintaining the data-needed, and
    • completing and reviewing the collection of information.

    Send comments regarding these burden estimates or any aspect of this collection of information, including suggestions for reducing burden, to:

    Federal Energy Regulatory Commission, (Attention: Information Clearance Officer, CIO),
    888 First Street NE,
    Washington, DC 20426
    or by email to DataClearance@ferc.gov

    And to:

    Office of Information and Regulatory Affairs,
    Office of Management and Budget, Washington, DC 20503 (Attention: Desk Office for the Federal Energy Regulatory Commission).
    Comments to OMB should be submitted by email to: oira_submission@omb.eop.gov

    No person shall be subject to any penalty if any collection of information does not display a valid control number (44 U.S.C. 3512(a)).

DEFINITIONS
  1. Respondent -- The person, corporation, or other legal entity in whose behalf the report is made.

FERC FORM NO.
60

REPORT OF CENTRALIZED SERVICE COMPANIES
Identification
01 Exact Legal Name of Respondent

American Electric Power Service Corporation
02 Year / Period of Report

2018
/
Q4
03 Previous Name (if name changed during the year)

04 Date of Name Change

05 Address of Principal Office at End of Year (Street, City, State, Zip Code)

1 Riverside Plaza, Columbus, OH 43215
06 Name of Contact Person

Brian T. Lysiak
07 Title of Contact Person

Accounting Sr Mgr, Regulated Acctg - AEPSC
08 Address of Contact Person

1 Riverside Plaza, Columbus, OH 43215
09 Telephone Number of Contact Person

(614) 716-2666
10 E-mail Address of Contact Person

btlysiak@aep.com
11 This Report is An Original / A Resubmission

(1)
An Original

(2)
A Resubmission
12 Resubmission Date (Month, Day, Year)

13 Date of Incorporation

12/17/1937
14 If Not Incorporated, Date of Organization

15 State or Sovereign Power Under Which Incorporated or Organized

16 Name of Principal Holding Company Under Which Reporting Company is Organized:

American Electric Power Company, Inc.
CORPORATE OFFICER CERTIFICATION
The undersigned officer certifies that:

I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material respects to the Uniform System of Accounts.

17 Name of Signing Officer

Jeffrey W. Hoersdig
18 Title of Signing Officer

Assistant Controller
19 Signature of Signing Officer

20 Date Signed (Month, Day, Year)

04/29/2019

FOOTNOTE DATA

(a) Concept: StateOfIncorporation
Original value: NEW YORK

Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
List of Schedules
  1. Enter in Column (c) the terms “None” or “Not Applicable” as appropriate, where no information or amounts have been reported for certain pages.
Line No.
Description
(a)
Page Reference
(b)
Remarks
(c)
1
ScheduleComparativeBalanceSheetAbstract
Schedule I - Comparative Balance Sheet
101
2
ScheduleServiceCompanyPropertyAbstract
Schedule II - Service Company Property
103
3
ScheduleAccumulatedProvisionForDepreciationAndAmortizationOfServiceCompanyPropertyAbstract
Schedule III - Accumulated Provision for Depreciation and Amortization of Service Company Property
104
4
ScheduleInvestmentsAbstract
Schedule IV - Investments
105
4.1
ScheduleOtherInvestmentsAbstract
Schedule IV - Investments - Other Investments
105
4.2
ScheduleOtherSpecialFundsAbstract
Schedule IV - Investments - Other Special Funds
105
4.3
ScheduleTemporaryCashInvestmentsAbstract
Schedule IV - Investments - Temporary Cash Investments
105
5
ScheduleAccountsReceivableFromAssociateCompaniesAbstract
Schedule V - Accounts Receivable from Associate Companies
106
6
ScheduleFuelStockExpensesUndistributedAbstract
Schedule VI - Fuel Stock Expenses Undistributed
107
7
ScheduleStoresExpenseUndistributedAbstract
Schedule VII - Stores Expense Undistributed
108
8
ScheduleMiscellaneousCurrentAndAccruedAssetsAbstract
Schedule VIII - Miscellaneous Current and Accrued Assets
109
9
ScheduleMiscellaneousDeferredDebitsAbstract
Schedule IX - Miscellaneous Deferred Debits
110
10
ScheduleResearchDevelopmentOrDemonstrationExpendituresAbstract
Schedule X - Research, Development, or Demonstration Expenditures
111
11
ScheduleProprietaryCapitalAbstract
Schedule XI - Proprietary Capital
201
12
ScheduleLongTermDebtAbstract
Schedule XII - Long-Term Debt
202
13
ScheduleCurrentAndAccruedLiabilitiesAbstract
Schedule XIII - Current and Accrued Liabilities
203
14
ScheduleNotesToFinancialStatementsAbstract
Schedule XIV - Notes to Financial Statements
204
15
ScheduleStatementOfIncomeAbstract
Schedule XV - Comparative Income Statement
301
16
ScheduleAnalysisOfChargesForServiceAssociateAndNonAssociateCompaniesAbstract
Schedule XVI - Analysis of Charges for Service - Associate and Nonassociate Companies
303
17
ScheduleAnalysisOfBillingAssociateCompaniesAbstract
Schedule XVII - Analysis of Billing - Associate Companies (Account 457)
307
18
ScheduleAnalysisOfBillingNonAssociateCompaniesAbstract
Schedule XVIII - Analysis of Billing - Non-Associate Companies (Account 458)
308
21
ScheduleMiscellaneousGeneralExpensesAbstract
Schedule XIX - Miscellaneous General Expenses - Account 930.2
309
23
ScheduleOrganizationChartAbstract
Schedule XX - Organization Chart
401
24
ScheduleMethodsOfAllocationAbstract
Schedule XXI - Methods of Allocation
402


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule I - Comparative Balance Sheet
  1. Give balance sheet of the Company as of December 31 of the current and prior year.
Line No.
Account Number
(a)
Description
(b)
Reference Page No.
(c)
As of Dec 31 Current
(d)
As of Dec 31 Prior
(e)
1
ServiceCompanyPropertyAbstract
Service Company Property
2
ServiceCompanyPropertyGross
Service Company Property
103
237,767,121
225,229,262
3
PropertyUnderCapitalLeases
Property Under Capital Leases
103
91,474,287
92,330,583
4
CompletedConstructionNotClassified
Completed Construction Not Classified
14,488,684
14,504,472
5
ConstructionWorkInProgress
Construction Work In Progress
103
15,978,787
11,300,485
6
Property
Total Property (Total Of Lines 2-5)
359,708,879
343,364,802
7
AccumulatedProvisionforDepreciationofServiceCompanyProperty
Less: Accumulated Provision for Depreciation of Service Company Property
104
128,287,915
125,662,633
8
AccumulatedProvisionforAmortizationofServiceCompanyProperty
Less: Accumulated Provision for Amortization of Service Company Property
4,792,911
4,697,136
9
ServiceCompanyPropertyNet
Net Service Company Property (Total of Lines 6-8)
226,628,053
213,005,033
10
InvestmentsAbstract
Investments
11
InvestmentInAssociateCompanies
Investment In Associate Companies
105
12
OtherInvestments
Other Investments
105
193,109,088
203,763,183
13
OtherSpecialFunds
Other Special Funds
105
98,304,060
114,045,900
14
Investments
Total Investments (Total of Lines 11-13)
291,413,148
317,809,083
15
CurrentAndAccruedAssetsAbstract
Current And Accrued Assets
16
Cash
Cash
29,989,715
22,855,834
17
OtherSpecialDeposits
Other Special Deposits
3,134,508
1,932,591
18
WorkingFunds
Working Funds
18,304,500
11,109,500
19
TemporaryCashInvestments
Temporary Cash Investments
105
20
NotesReceivable
Notes Receivable
21
CustomerAccountsReceivable
Customer Accounts Receivable
5,443,854
2,289,642
22
OtherAccountsReceivable
Accounts Receivable
3,066,870
17,146,422
23
AccumulatedProvisionForUncollectibleAccountsCredit
Less: Accumulated Provision for Uncollectible Accounts
23.1
NotesReceivableFromAssociatedCompanies
Notes Receivable From Associate Companies
24
AccountsReceivableFromAssociateCompanies
Accounts Receivable From Associate Companies
106
182,929,169
212,709,453
25
FuelStockExpensesUndistributed
Fuel Stock Expenses Undistributed
107
26
MaterialsAndOperatingSupplies
Materials And Supplies
578,042
614,232
27
StoresExpenseUndistributed
Stores Expense Undistributed
108
28
Prepayments
Prepayments
42,171,363
31,292,652
29
InterestAndDividendsReceivable
Interest And Dividends Receivable
30
RentsReceivable
Rents Receivable
31
AccruedRevenues
Accrued Revenues
32
MiscellaneousCurrentAndAccruedAssets
Miscellaneous Current and Accrued Assets
109
3,195
33
DerivativeInstrumentAssets
Derivative Instrument Assets
34
DerivativeInstrumentAssetsHedges
Derivative Instrument Assets - Hedges
35
CurrentandAccruedAssets
Total Current and Accrued Assets (Total of Lines 16-34)
285,614,826
299,950,326
36
DeferredDebitsAbstract
Deferred Debits
37
UnamortizedDebtExpense
Unamortized Debt Expense
38
OtherRegulatoryAssets
Other Regulatory Assets
438,413,462
376,095,660
39
PreliminarySurveyAndInvestigationCharges
Preliminary Survey And Investigation Charges
40
ClearingAccounts
Clearing Accounts
41
TemporaryFacilities
Temporary Facilities
42
MiscellaneousDeferredDebits
Miscellaneous Deferred Debits
110
585,841
1,619,470
43
ResearchDevelopmentOrDemonstrationExpenditures
Research, Development, or Demonstration Expenditures
111
44
UnamortizedLossOnReacquiredDebt
Unamortized Loss on Reacquired Debt
45
AccumulatedDeferredIncomeTaxes
Accumulated Deferred Income Taxes
58,788,600
90,573,738
46
DeferredDebits
Total Deferred Debits (Total of Lines 37-45)
497,787,903
468,288,868
47
AssetsAndOtherDebits
TOTAL ASSETS AND OTHER DEBITS (TOTAL OF LINES 9, 14, 35 and 46)
1,301,443,930
1,299,053,310
48
ProprietaryCapitalAbstract
Proprietary Capital
49
CommonStockIssued
Common Stock Issued
201
1,350,000
1,350,000
50
PreferredStockIssued
Preferred Stock Issued
201
51
MiscellaneousPaidInCapital
Miscellaneous Paid-In-Capital
201
(b)
7,052,116
7,052,116
52
AppropriatedRetainedEarnings
Appropriated Retained Earnings
201
53
UnappropriatedRetainedEarnings
Unappropriated Retained Earnings
201
54
AccumulatedOtherComprehensiveIncome
Accumulated Other Comprehensive Income
201
55
ProprietaryCapital
Total Proprietary Capital (Total of Lines 49-54)
8,402,116
8,402,116
56
LongTermDebtAbstract
Long-Term Debt
57
AdvancesFromAssociateCompanies
Advances From Associate Companies
202
58
OtherLongTermDebt
Other Long-Term Debt
202
59
UnamortizedPremiumonLongTermDebt
Unamortized Premium on Long-Term Debt
60
UnamortizedDiscountonLongTermDebtDebit
Less: Unamortized Discount on Long-Term Debt-Debit
61
LongTermDebt
Total Long-Term Debt (Total of Lines 57-60)
62
OtherNoncurrentLiabilitiesAbstract
Other Non-current Liabilities
63
ObligationsUnderCapitalLeaseNoncurrent
Obligations Under Capital Leases-Non-current
70,481,031
72,039,425
64
AccumulatedProvisionForInjuriesAndDamages
Accumulated Provision for Injuries and Damages
301,459
345,553
65
AccumulatedProvisionForPensionsandBenefits
Accumulated Provision For Pensions and Benefits
314,234,940
297,367,146
66
AssetRetirementObligations
Asset Retirement Obligations
67
OtherNoncurrentLiabilities
Total Other Non-current Liabilities (Total of Lines 63-66)
385,017,430
369,752,124
68
CurrentandAccruedLiabilitiesAbstract
Current and Accrued Liabilities
69
NotesPayable
Notes Payable
70
AccountsPayable
Accounts Payable
124,315,559
94,727,964
71
NotesPayableToAssociateCompanies
Notes Payable to Associate Companies
203
224,735,513
259,331,329
72
AccountsPayableToAssociateCompanies
Accounts Payable to Associate Companies
203
52,165,446
80,276,576
73
TaxesAccrued
Taxes Accrued
6,375,727
6,206,066
74
InterestAccrued
Interest Accrued
632,416
692,832
75
TaxCollectionsPayable
Tax Collections Payable
702,314
710,573
76
MiscellaneousCurrentAndAccruedLiabilities
Miscellaneous Current and Accrued Liabilities
203
307,999,888
255,692,454
77
ObligationsUnderCapitalLeasesCurrent
Obligations Under Capital Leases - Current
20,989,561
20,290,818
78
DerivativeInstrumentLiabilities
Derivative Instrument Liabilities
79
DerivativeInstrumentLiabilitiesHedges
Derivative Instrument Liabilities - Hedges
80
CurrentAndAccruedLiabilities
Total Current and Accrued Liabilities (Total of Lines 69-79)
737,916,424
717,928,612
81
DeferredCreditsAbstract
Deferred Credits
82
OtherDeferredCredits
Other Deferred Credits
59,985,722
75,075,470
83
OtherRegulatoryLiabilities
Other Regulatory Liabilities
19,076,991
21,341,507
84
AccumulatedDeferredInvestmentTaxCredits
Accumulated Deferred Investment Tax Credits
38,158
85
UnamortizedGainOnReacquiredDebt
Unamortized Gain on Reacquired Debt
86
AccumulatedDeferredIncomeTaxesOtherProperty
Accumulated deferred income taxes-Other property
28,016,922
10,342,149
87
AccumulatedDeferredIncomeTaxesOther
Accumulated deferred income taxes-Other
63,028,325
96,173,174
88
DeferredCredits
Total Deferred Credits (Total of Lines 82-87)
170,107,960
202,970,458
89
LiabilitiesAndProprietaryCapital
TOTAL LIABILITIES AND PROPRIETARY CAPITAL (TOTAL OF LINES 55, 61, 67, 80, AND 88)
1,301,443,930
1,299,053,310


FOOTNOTE DATA

(a) Concept: FuelStockExpensesUndistributed

Page 107, Footnote Regarding Fuel Functions of AEP Service Company

 

The fuel functions performed by AEP Service Company include:

The coordination of fuel delivery to fossil fuel power plants which includes responding to power plant tests and monitoring the location of equipment such as barges and railcars that transport the fuel.

 

The provision of technical and economic analysis and investigation necessary to resolve problems.

 

The pricing of fuel consumed, the establishment of fuel inventory value, the recording and monitoring of accounting records for fuel purchased and fuel consumed including quantity and cost information.

 

The performance of laboratory analyses of coal and water samples for quality control purposes.

 

The production and distribution of specific Fuel filings which includes preparation of schedules, exhibits, and testimony.

 

Tasks performed to process invoices relating to purchase order and/or non-purchase order transactions for payment. It also includes preparation account/work order classification, verification, and release of disbursement checks.

 

The procurement of fuel and othercombustion products, including all tasks necessary to negotiate, develop and administer fuel supply and pipeline agreements with fuel and pipeline vendors. This includes all processes involved in maintaining a business relationship with fuel vendors and pipeline companies, from establishing contact to approving pricing for payment of fuel delivered.

 

Tasks associated with the receipt of fuel, storage of fuel, operation and monitoring of the fuel feed system and related components up to and including the bunkers/silo.

(b) Concept: MiscellaneousPaidInCapital

The Miscellaneous Paid-In Capital for $7,052,116 is made up of three capital contributions.

 

The first capital contribution of $99,500 represents the net investment of Central and South West Services, LP with AEPSC when the two service corporations combined as a result of the merger of Central and South West Corporation and American Electric Power in June of 2000.

 

The second capital contribution of $8,123,156 was due to an American Electric Power Company Inc. board resolution in April 2009 which transferred a parking garage to AEPSC. The resolution approved the contribution of the Marconi Street Unassigned Parking Garage to AEPSC as a capital contribution in the amount of the net book value of the property. The contribution of the unassigned garage to AEPSC was proposed to align its ownership with its primary user i.e. AEPSC.

 

In association with the AEP Texas Inc. merger and pursuant to a December 2016 American Electric Power Company Inc. board resolution, the liabilities associated with the Central and South West’s Corporate Directors Compensation Plan and its Deferred Compensation Plan were transferred to AEPSC. This transaction was treated as a distribution of paid-in capital because AEPSC assumed the liabilities with these plans.


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule II - Service Company Property
  1. Provide an explanation of Other Changes recorded in Column (f) considered material in a footnote.
  2. Describe each construction work in progress on lines 18 through 30 in Column (b).
Line No.
Account #
(a)
Title of Account
(b)
Balance at Beginning of Year
(c)
Additions
(d)
Retirements or Sales
(e)
Other Changes
(f)
Balance at End of Year
(g)
1
Organization
2
Miscellaneous Intangible Plant
38,455
37,535
675
245
3
Leasehold Improvements
5,182,570
2,087,811
16,813
7,253,568
4
Land and Land Rights
7,394,806
7,394,806
5
Structures and Improvements
213,259,110
2,165,291
648,821
214,775,580
6
Office Furniture and Equipment
76,949,687
13,206,979
16,496,747
8,427
73,651,492
7
Transportation Equipment
27,912,571
4,188,433
1,008,049
578,498
31,671,453
8
Stores Equipment
9
Tools, Shop and Garage Equipment
21,193,802
5,697,926
229,351
26,662,377
10
Laboratory Equipment
8,284,951
451,994
95,852
8,641,093
11
Power Operated Equipment
12
Communications Equipment
16,354,991
5,277,419
800,562
20,831,848
13
Miscellaneous Equipment
3,184,839
772,467
32,315
3,924,991
14
Other Tangible Property
15
Asset Retirement Costs
16
Total Service Company Property (Total of Lines 1-15)
379,755,782
33,810,785
19,329,185
570,071
394,807,453
17
Construction Work in Progress:
18
Capitalized Software
21,623
15,712
37,335
19
General and Misc Equipment
9,021,435
4,544,747
4,476,688
20
Improvements to Office Buildings
2,257,427
9,207,337
11,464,764
31
Total Account 107 (Total of Lines 18-30)
11,300,485
4,678,302
15,978,787
32
Total (Lines 16 and Line 31)
(a)
391,056,267
38,489,087
(c)
410,786,240


FOOTNOTE DATA

(a) Concept: ServiceCompanyPropertyIncludingConstructionWorkInProgress

Page 103 Footnote:

 

 

 

Schedule Page: 103 Line No. 32, Column: c

 

 

 

 

Balance at Beginning of Year

101 Service Company Property

$ 225,229,262

101.1 Property Under Capital Lease*

140,022,048

106 Completed Construction Not Classified

14,504,472

107 Construction Work In Progress

11,300,485

 

 

 

$ 391,056,267

 

 

* Provision for leased assets in the amount of $(47,691,465) included

in FERC Account 101.1 is shown on page 104.

 

 

(b) Concept: ServiceCompanyPropertyIncludingConstructionWorkInProgressAdjustments

 

Other Changes

Lease Transfers

$ 570,071

 

 

 

$ 570,071

 

 

 

(c) Concept: ServiceCompanyPropertyIncludingConstructionWorkInProgress

Schedule Page: 103 Line No. 32, Column: g

 

 

Balance at End of Year

101 Service Company Property

$ 237,767,121

101.1 Property Under Capital Lease*

142,551,648

106 Completed Construction Not Classified

14,488,684

107 Construction Work In Progress

15,978,787

 

 

 

$ 410,786,240

 

 

* Provision for leased assets in the amount of $(51,077,361) included

in FERC Account 101.1 is shown on the footnote for page 104.

 

 

End of Year

Beginning of Year

Reconciliation to Balance Sheet:

 

 

101.1 Property Under Capital Lease per above

$142,551,648

$140,022,048

Provision for leased assets per above

($51,077,361)

($47,691,465)

101.1 Property Under Capital Lease Page 101

$91,474,287

$92,330,583


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule III - Accumulated Provision for Depreciation and Amortization of Service Company Property
  1. Provide an explanation of Other Charges in Column (f) considered material in a footnote.
Line No.
Account Number
(a)
Description
(b)
Balance at Beginning of Year
(c)
Additions Charged To Account 403-403.1 404-405
(d)
Retirements
(e)
Other Changes Additions (Deductions)
(f)
Balance at Close of Year
(g)
1
Organization
2
Miscellaneous Intangible Plant
11,585
2,654
675
14,149
585
3
Leasehold Improvements
4,961,411
122,162
16,813
5,066,760
4
Land and Land Rights
5
Structures and Improvements
118,207,119
1,757,454
648,821
172,103
119,487,855
6
Office Furniture and Equipment
33,481,603
301,400
16,428,908
13,737,657
31,091,752
7
Transportation Equipment
7,310,858
998,977
3,523,238
9,835,119
8
Stores Equipment
9
Tools, Shop and Garage Equipment
2,338,156
1,089,719
229,012
325,251
3,524,114
10
Laboratory Equipment
4,514,656
121,978
95,852
420,177
4,960,959
11
Power Operated Equipment
12
Communications Equipment
6,336,842
223,941
794,210
3,465,389
9,231,962
13
Miscellaneous Equipment
889,004
66,024
32,315
37,538
960,251
14
Other Tangible Property
15
Asset Retirement Costs
16
Total
(a)
178,051,234
3,685,332
19,245,583
(b)
21,667,204
(c)
184,158,187

FOOTNOTE DATA

(a) Concept: AccumulatedProvisionForDepreciationAndAmortizationServiceCompanyProperty

Footnote Column C

 

 

Balance at Beginning

 

of Year

101.1 Property Under Capital Lease*

$ 47,691,465

108 Accumulated Provision for Depreciation of Service Company Property

125,662,633

111 Accumulated Provision for Amortization of Service Company Property

4,697,136

 

$ 178,051,234

 

 

* FERC Account 101.1 includes $47,691,465 of provision for leased assets.

(b) Concept: AccumulatedProvisionForDepreciationAndAmortizationServiceCompanyPropertyAdjustments

Footnote Column F:

 

 

 

Other Changes:

Amount

Lease Additions and Transfers

21,965,169

Retirement Work In Progress

109,962

Expense related to the Aircraft Hangar reclassification

Cost of Removal for 1RP and 125/155 Nationwide Blvd

59,749

(453,527)

Reserve Transfers Related to Service Corporation

(14,149)

 

$ 21,667,204

(c) Concept: AccumulatedProvisionForDepreciationAndAmortizationServiceCompanyProperty

Footnote Column G:

 

 

Balance at End

 

of Year

101.1 Property Under Capital Lease*

$ 51,077,361

108 Accumulated Provision for Depreciation of Service Company Property

128,287,915

111 Accumulated Provision for Amortization of Service Company Property

4,792,911

 

$ 184,158,187

 

 

* FERC Account 101.1 includes $51,077,361 of provision for leased assets.

 

 


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
Balance at Beginning of Year
(c)
Balance at Close of Year
(d)
1
Investment In Associate Companies
2
Other Investments
203,763,183
193,109,088
3
Other Special Funds
114,045,900
98,304,060
4
Balance at close of year
5
(Total of Line 1-4)
317,809,083
(a)
291,413,148


FOOTNOTE DATA

(a) Concept: InvestmentsIncludingTemporaryCashInvestments

ACCOUNT DESCRIPTION

Balance at Beginning of Year

Balance at End of Year

Cash Surrender Value of Deferred Compensation Plan, issued by Northwest Mutual Life and John Hancock.

$ 19,798,367

$ 18,635,760

Cash Surrender Value of Umbrella Trust, issued by Prudential Life and Wells Fargo

183,964,096

173,449,789

Cash Surrender Value of Central and South West Supplemental Executive Retirement Plan, issued by The Newport Group

720

105,352

Cash Surrender Value of Deferred Compensation Plan, for Central and South West Legacy

25,614

Umbrella Trust, issued by Wells Fargo - Interest & Dividends

 

892,573

 

 

 

Total Other Investment

$ 203,763,183

$ 193,109,088

 

 

 

 

 

 

ACCOUNT DESCRIPTION

Balance at End of Year

Account 128 - Other Special Funds

 

 

PRW Net Funded Position

$ 114,045,900

$ 98,304,060

 

 

 

Total Other Special Funds

$ 114,045,900

$ 98,304,060

 

 


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments - Other Investments
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Investment Description
(a)
Name of Issuing Company
(b)
Number of Shares Held
(c)
Principal Investment Amount
(d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments - Other Special Funds
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Investment Description
(a)
Name of Issuing Company
(b)
Number of Shares Held
(c)
Principal Investment Amount
(d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments - Temporary Cash Investments
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Investment Description
(a)
Balance at Close of Year
(b)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule V - Accounts Receivable from Associate Companies
  1. List the accounts receivable from each associate company.
  2. If the service company has provided accommodation or convenience payments for associate companies, provide in a separate footnote a listing of total payments for each associate company.
Line No.
Account Number
(a)
AssociateCompanyName
Title of Account
(b)
AccountsReceivableFromAssociateCompanies
Balance at Beginning of Year
(c)
AccountsReceivableFromAssociateCompanies
Balance at Close of Year
(d)
PaymentsFromAssociateCompanies
Total Accommodation or Convenience Payments
(e)
1
Accounts Receivable From Associate Companies
2
Associate Company:
3
Total Accounts Receivable from Associated Companies
(a)
212,709,453
182,929,169
40
212,709,453
182,929,169


FOOTNOTE DATA

(a) Concept: AccountsReceivableFromAssociateCompanies

American Electric Power Service Corporation

 

 

146 Accounts Receivable from Associate Companies

 

 

 

 

 

Associate Company

Balance at

Beginning of Year

Balance at

Close of Year

AEP Amazon

146

36

AEP Appalachian Transmission Company, Inc.

188,260

416,261

AEP C&I Company LLC

142,966

0

AEP Coal, Inc.

1,874

13,259

AEP Credit, Inc.

169,278

53,640

AEP Desert Sky GP, LLC

1,145

0

AEP Desert Sky LP II, LLC

1,019

0

AEP Energy Partners, Inc.

889,272

811,966

AEP Energy Service Gas Holding Company

2,929

83

AEP Energy Services, Inc.

102,876

48,549

AEP Energy Supply LLC

115,229

25,110

AEP Energy, Inc

185,880

288,949

AEP Generating Company

149,516

160,886

AEP Generation Resources

4,962,611

2,179,941

AEP Indiana Michigan Transmission Company, Inc.

6,512,432

5,646,905

AEP Kentucky Coal, LLC

815

0

AEP Kentucky Transmission Company, Inc.

633,058

500,971

AEP Nonutility Funding LLC

1,825

1,230

AEP Ohio Transmission Company, Inc.

10,617,950

10,772,272

AEP Oklahoma Transmission Company, Inc.

2,822,131

2,451,322

AEP OnSite Partners, LLC

259,781

239,110

AEP Pro Serv, Inc.

224,554

140,033

AEP Renewables, LLC

19,248

121,750

Appalachian Rate Relief Fund

0

35,132

AEP Retail Energy Partners LLC

2,649

27,988

AEP River Operations LLC

0

0

AEP Southwestern Transmission Company, Inc.

10,467

6,977

AEP System Pool

77,162

205,982

AEP T&D Services, LLC

92,383

84,622

AEP Texas Company

24,171,199

22,279,617

AEP Transmission Company, LLC

3,587

0

AEP Transmission Holding Company, LLC

2,980,116

240,616

AEP Transmission Partner LLC

469

0

AEP Utility Funding LLC

40,201

12,374

AEP West Virginia Transmission Company, Inc.

4,308,911

4,523,551

AEP Wind GP, LLC

741

0

AEP Wind Holding Company, LLC

55,018

0

AEP Wind LP II, LLC

852

0

American Electric Power Company

1,511,182

138,887

Appalachian Power Company

37,009,486

32,159,748

Blackhawk Coal Company

723

308

BSE Solutions LLC

123

121

Cardinal Operating Company

1,774,513

0

Cedar Coal Company

508

1,422

Central Appalachian Coal Company

342

0

Central Coal Company

792

13

Conesville Coal Preparation Company

709

438

CSW Energy, Inc.

26,063

124,142

Desert Sky Wind Farm LLC

0

4,297

Desert Sky Wind Farm LP

60,179

0

Dolet Hills Lignite Co, LLC

664,739

612,365

Electric Transmission TX, LLC

5,527,642

3,462,376

Grid Assurance LLC

76,845

219,002

Indiana Michigan Power Company

26,762,032

23,779,383

Jacumba Solar LLC

0

102

Kentucky Power Company

8,640,206

10,926,424

Kingsport Power Company

929,090

889,560

Ohio Franklin Realty, LLC

92,260

12,065

Ohio Power Company

27,406,635

23,856,593

Oxbow Lignite Company, LLC

9,606

4,706

Public Liability

0

0

Public Service Company of Oklahoma

18,680,017

13,154,657

Snowcap Coal Company, Inc.

729

738

Solar LLCs

1,513

7,529

Southern Appalachian Coal Company

640

13

Southwestern Electric Power Company

20,771,978

18,356,812

Transource Energy, LLC

0

70,676

Transource Maryland

339,859

288,147

Transource Missouri, LLC

377,038

345,329

Transource Pennsylvania

785,612

1,169,214

Transource West Virginia, LLC

305,464

709,976

Trent Wind Farm LLC

0

43,199

Trent Wind Farm LP

111,267

0

United Sciences Testing, Inc.

312,290

591,295

Wheeling Power Company

780,819

710,500

Total

212,709,453

182,929,169

 

 

 

American Electric Power Service Corporation

 

Summary of Convenience Payments

 

 

 

Associate Company

Amount

AEP Appalachian Transmission Company, Inc.

140,583

AEP C&I Company LLC

300

AEP Coal, Inc.

284,665

AEP Credit, Inc.

225

AEP Energy Partners, Inc.

1,678,584

AEP Energy Service Gas Holding Company

225

AEP Energy Services, Inc.

704

AEP Energy Supply LLC

300

AEP Energy, Inc

825,761

AEP Generating Company

337,506

AEP Generation Resources

3,723,962

AEP Indiana Michigan Transmission Company, Inc.

16,641,357

AEP Investments, Inc.

3,562

AEP Kentucky Coal, LLC

95,019

AEP Kentucky Transmission Company, Inc.

723,210

AEP Nonutility Funding LLC

300

AEP Ohio Transmission Company, Inc.

10,214,996

AEP Oklahoma Transmission Company, Inc.

2,548,309

AEP OnSite Partners, LLC

169,223

AEP Pro Serv, Inc.

10,472,861

AEP Properties, L.L.C.

1,057

AEP Renewables, LLC

2,118,132

AEP Retail Energy Partners LLC

6,842

AEP Southwestern Transmission Company, Inc.

380

AEP System Pool

3,452

AEP T&D Services, LLC

1,047,561

AEP Texas Company

90,517,821

AEP Transmission Company, LLC

426

AEP Transmission Holding Company, LLC

1,338

AEP Transmission Partner LLC

300

AEP Utility Funding LLC

300

AEP West Virginia Transmission Company, Inc.

4,137,445

American Electric Power Company

240,889

Appalachian Power Company

135,964,730

Appalachian Rate Relief Fund

35,132

Blackhawk Coal Company

19

BSE Solutions LLC

500

Cardinal Operating Company

87,130

Cedar Coal Company

602

Central Appalachian Coal Company

26

Central Coal Company

26

CSW Energy, Inc.

23,087

Desert Sky Wind Farm LLC

302,401

Desert Sky Wind Farm LP

7,261

Dolet Hills Lignite Co, LLC

294,955

Electric Transmission TX, LLC

3,949,866

Franklin Real Estate Company

369,422

Grid Assurance LLC

300

Indiana Franklin Realty, Inc.

206,648

Indiana Michigan Power Company

84,205,545

Jacumba Solar LLC

5,645,635

Kentucky Power Company

6,944,728

Kingsport Power Company

1,043,497

Kyte Works, LLC

4,747

Mutual Energy SWEPCO L.P

300

Ohio Franklin Realty, LLC

170,900

Ohio Power Company

169,908,870

Oxbow Lignite Company, LLC

52

PATH WV Transmission Company, LLC

26

Public Liability

586

Public Service Company of Oklahoma

18,130,171

Snowcap Coal Company, Inc.

225

Solar LLCs

554

Southern Appalachian Coal Company

26

Southwestern Electric Power Company

23,897,471

Transource Energy, LLC

535,948

Transource Maryland

55,233

Transource Missouri, LLC

2,543

Transource Pennsylvania

82,801

Transource West Virginia, LLC

201,079

Trent Wind Farm LLC

1,153,178

Trent Wind Farm LP

469,450

United Sciences Testing, Inc.

808,946

Wheeling Power Company

849,401

Total

601,291,611


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule VI - Fuel Stock Expenses Undistributed
  1. List the amount of labor in Column (c) and expenses in Column (d) incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company.
  2. In a separate footnote, describe in a narrative the fuel functions performed by the service company.
Line No.
Account Number
(a)
Title of Account
(b)
FuelStockExpensesUndistributedLabor
Labor
(c)
FuelStockExpensesUndistributedExpenses
Expenses
(d)
FuelStockExpensesUndistributed
Total
(e)
1
Fuel Stock Expenses Undistributed
2
Associate Company:
3
AEP Generation Resources
181,149
79,526
260,675
4
AEP Texas Company
9,475
46,090
55,565
5
Appalachian Power Company
1,354,680
694,485
2,049,165
6
Indiana Michigan Power Company
1,277,495
493,292
1,770,787
7
Kentucky Power Company
636,692
250,580
887,272
8
Public Service Company of Oklahoma
585,720
213,538
799,258
9
Southwestern Electric Power Company
1,652,307
658,707
2,311,014
10
Other
71,796
23,323
95,119
11
Less Amount Billed
5,769,314
2,459,541
8,228,855
40

FOOTNOTE DATA

(a) Concept: FuelStockExpensesUndistributed

Page 107, Footnote Regarding Fuel Functions of AEP Service Company

 

The fuel functions performed by AEP Service Company include:

The coordination of fuel delivery to fossil fuel power plants which includes responding to power plant tests and monitoring the location of equipment such as barges and railcars that transport the fuel.

 

The provision of technical and economic analysis and investigation necessary to resolve problems.

 

The pricing of fuel consumed, the establishment of fuel inventory value, the recording and monitoring of accounting records for fuel purchased and fuel consumed including quantity and cost information.

 

The performance of laboratory analyses of coal and water samples for quality control purposes.

 

The production and distribution of specific Fuel filings which includes preparation of schedules, exhibits, and testimony.

 

Tasks performed to process invoices relating to purchase order and/or non-purchase order transactions for payment. It also includes preparation account/work order classification, verification, and release of disbursement checks.

 

The procurement of fuel and othercombustion products, including all tasks necessary to negotiate, develop and administer fuel supply and pipeline agreements with fuel and pipeline vendors. This includes all processes involved in maintaining a business relationship with fuel vendors and pipeline companies, from establishing contact to approving pricing for payment of fuel delivered.

 

Tasks associated with the receipt of fuel, storage of fuel, operation and monitoring of the fuel feed system and related components up to and including the bunkers/silo.


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule VII - Stores Expense Undistributed
  1. List the amount of labor in Column (c) and expenses in Column (d) incurred with respect to stores expense during the year and indicate amount attributable to each associate company.
Line No.
Account Number
(a)
Title of Account
(b)
FuelStockExpensesUndistributedLabor
Labor
(c)
FuelStockExpensesUndistributedExpenses
Expenses
(d)
FuelStockExpensesUndistributed
Total
(e)
1
Stores Expense Undistributed
2
Associate Company:
3
AEP Appalachian Transmission Company, Inc.
113,068
12,913
125,981
4
AEP C&I Company LLC
1,960
568
2,528
5
AEP Credit, Inc.
592
155
747
6
AEP Energy Partners, Inc.
19,847
6,522
26,369
7
AEP Energy Services, Inc.
10,090
2,643
12,733
8
AEP Energy Supply LLC
3,181
2,694
5,875
9
AEP Energy, Inc
5,297
3,396
8,693
10
AEP Generating Company
37,625
14,726
52,351
11
AEP Generation Resources
1,343,934
83,794
1,427,728
12
AEP Indiana Michigan Transmission Company, Inc.
1,692,064
323,570
2,015,634
13
AEP Investments, Inc.
372
90
462
14
AEP Kentucky Transmission Company, Inc.
66,458
17,858
84,316
15
AEP Nonutility Funding LLC
33
10
43
16
AEP Ohio Transmission Company, Inc.
3,025,189
534,801
3,559,990
17
AEP Oklahoma Transmission Company, Inc.
381,916
151,281
533,197
18
AEP OnSite Partners, LLC
12,762
20,329
33,091
19
AEP Pro Serv, Inc.
26,380
829
27,209
20
AEP Renewables, LLC
6,693
16,687
23,380
21
AEP Retail Energy Partners LLC
2
1
3
22
AEP Southwestern Transmission Company, Inc.
18
11
29
23
AEP T&D Services, LLC
1,801
97
1,898
24
AEP Texas Company
3,180,235
1,318,103
4,498,338
25
AEP Transmission Company, LLC
19
12
31
26
AEP Transmission Holding Company, LLC
142
286
144
27
AEP Utility Funding LLC
3,766
1,615
5,381
28
AEP West Virginia Transmission Company, Inc.
916,607
600,009
1,516,616
29
American Electric Power Company
26,539
4,320
30,859
30
Appalachian Power Company
6,829,510
2,066,243
8,895,753
31
Bold Transmission, LLC
341
158
499
32
BSE Solutions LLC
20
4
24
33
Cardinal Operating Company
371,840
38,863
410,703
34
CSW Energy, Inc.
16,611
34,658
51,269
35
Desert Sky Wind Farm LLC
18
10
28
36
Desert Sky Wind Farm LP
2
1
3
37
Dolet Hills Lignite Co, LLC
204,542
106,493
311,035
38
Electric Transmission America
5
2
7
39
Electric Transmission TX, LLC
366,469
33,207
399,676
40
Grid Assurance LLC
45,142
10,296
55,438
41
Indiana Michigan Power Company
3,712,917
1,247,059
4,959,976
42
Kentucky Power Company
2,158,443
512,829
2,671,272
43
Kingsport Power Company
68,010
29,375
97,385
44
Ohio Power Company
4,724,686
1,309,089
6,033,775
45
Public Service Company of Oklahoma
3,232,694
837,335
4,070,029
46
RITELine Indiana, LLC
3
2
5
47
Southwestern Electric Power Company
4,516,819
1,283,551
5,800,370
48
Transource Energy, LLC
641
330
971
49
Transource Maryland
529
232
761
50
Transource Missouri, LLC
10,263
1,394
11,657
51
Transource Pennsylvania
1,161
509
1,670
52
Transource West Virginia, LLC
9,401
7,178
16,579
53
Trent Wind Farm LLC
11
7
18
54
Trent Wind Farm LP
54
29
83
55
United Sciences Testing, Inc.
924
632
1,556
56
Wheeling Power Company
85,427
46,328
131,755
57
Less Amount Billed
37,232,789
10,683,134
47,915,923
40
Total


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule VIII - Miscellaneous Current and Accrued Assets
  1. Provide detail of items in this account. Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
MiscellaneousCurrentAndAccruedAssets
Balance at Beginning of Year
(c)
MiscellaneousCurrentAndAccruedAssets
Balance at Close of Year
(d)
1
Miscellaneous Current and Accrued Assets
2
Item List:
3
Other
3,195
40
Total
3,195


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IX - Miscellaneous Deferred Debits
  1. Provide detail of items in this account. Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
MiscellaneousDeferredDebits
Balance at Beginning of Year
(c)
MiscellaneousDeferredDebits
Balance at Close of Year
(d)
1
Miscellaneous Deferred Debits
2
Item List:
3
Deferred Aviation Expenses
1,072,204
4
Deferred Aviation Expenses - Current
119,134
5
Deferred Employee Expenses
166,839
6
Deferred Information Technology Expenses
216,366
159,755
7
Deferred Intercompany Expenses
53,394
9,966
8
Deferred Lease Assets - NonTaxable
77,579
170,356
9
Items less than $50,000 (8 items)
80,793
78,925
40
Total
1,619,470
585,841


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule X - Research, Development, or Demonstration Expenditures
  1. Describe each material research, development, or demonstration project that incurred costs by the service corporation during the year. Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
ResearchDevelopmentOrDemonstrationExpenditures
Amount
(c)
1
Research, Development, or Demonstration Expenditures
2
Project List:
3
Electric Power Research Institute (EPRI) Environmental Science
3,544,320
4
Transmission Electric Power Research Institute (EPRI) Annual Portfolio
1,656,136
5
Electric Power Research Institute (EPRI) Environmental Controls
1,038,383
6
Electric Power Research Institute EPRI Annual Portfolio
797,187
7
Generation Asset Management - Program Management
608,551
8
Information Technology - Electric Power Research Institute (EPRI) Annual Portfolio
444,417
9
Distribution - Electric Power Research Institute (EPRI) Annual Portfolio
371,495
10
Corporate Technology Program Management
161,584
11
National Electric Energy Testing, Research & Applications Center (NEETRAC) Membership
148,280
12
Electric Power Research Institute (EPRI) Renewable Annual Portfolio
131,549
13
Phase Transformation and Post Weld Heat Treatment (PWHT) on Grade 91 Steel
112,003
14
Advanced Generation Program Management
109,797
15
Transmission Research & Development Program Management
106,770
16
Clean Energy Solar Pilot Project
106,690
17
Improved Hg (Mercury) Control
87,960
18
Closed Ash Pond Monitoring
85,000
19
CEA (Canadian Electric Association) Membership & Projects
77,913
20
Strategic Technology Research
73,422
21
Albedo Test
63,972
22
Natural Gas-Electric Interface
62,500
23
Dolan Technology Center Walnut Maintenance
60,711
24
34 items under $50,000
409,616
25
Less Amount Billed
10,258,256
40
Total


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XI - Proprietary Capital
  1. For miscellaneous paid-in capital (Account 211) and appropriated retained earnings (Account 215), classify amounts in each account, with a brief explanation, disclosing the general nature of transactions which give rise to the reported amounts.
  2. For the unappropriated retained earnings (Account 216), in a footnote, give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentages, amount of dividend, date declared and date paid.
Line No.
Account Number
(a)
Title of Account
(b)
Description
(c)
Amount
(d)
1
Common Stock Issued
Number of Shares Authorized
20,000
2
Par or Stated Value per Share
100
3
Outstanding Number of Shares
13,500
4
Close of Period Amount
1,350,000
5
Preferred Stock Issued
Number of Shares Authorized
6
Par or Stated Value per Share
7
Outstanding Number of Shares
8
Close of Period Amount
9
Miscellaneous Paid-In Capital
(a)
7,052,116
10
Appropriated Retained Earnings
11
Accumulated Other Comprehensive Income
12
Unappropriated Retained Earnings
Balance at Beginning of Year
13
Net Income or (Loss)
14
Dividend Paid
15
Balance at Close of Year
Dividends paid during the year
Line No.
DividendsPaidDescription
Dividend Paid Description
(a)
DividendRate
Dividend Rate
(b)
Dividendpaid
Dividend Paid Amount
(c)
DividendDeclaredDate
Dividend Declared Date
(d)
DividendPaidDate
Dividend Paid Date
(e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30


FOOTNOTE DATA

(a) Concept: MiscellaneousPaidInCapital

The Miscellaneous Paid-In Capital for $7,052,116 is made up of three capital contributions.

 

The first capital contribution of $99,500 represents the net investment of Central and South West Services, LP with AEPSC when the two service corporations combined as a result of the merger of Central and South West Corporation and American Electric Power in June of 2000.

 

The second capital contribution of $8,123,156 was due to an American Electric Power Company Inc. board resolution in April 2009 which transferred a parking garage to AEPSC. The resolution approved the contribution of the Marconi Street Unassigned Parking Garage to AEPSC as a capital contribution in the amount of the net book value of the property. The contribution of the unassigned garage to AEPSC was proposed to align its ownership with its primary user i.e. AEPSC.

 

In association with the AEP Texas Inc. merger and pursuant to a December 2016 American Electric Power Company Inc. board resolution, the liabilities associated with the Central and South West’s Corporate Directors Compensation Plan and its Deferred Compensation Plan were transferred to AEPSC. This transaction was treated as a distribution of paid-in capital because AEPSC assumed the liabilities with these plans.


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XII - Long-Term Debt
  1. For the advances from associate companies (Account 223), describe in a footnote the advances on notes and advances on open accounts. Names of associate companies from which advances were received shall be shown under the class and series of obligation in Column (c).
  2. For the deductions in Column (h), please give an explanation in a footnote.
  3. For other long-term debt (Account 224), list the name of the creditor company or organization in Column (b).
Line No.
Account Number
(a)
Title of Account
(b)
Term of Obligation
(c)
Class & Series of Obligation
(d)
Date of Maturity
(e)
Interest Rate
(f)
Amount Authorized
(g)
Balance at Beginning of Year
(h)
Additions Deductions
(i)
Balance at Close of Year
(j)
1
Advances from Associate Companies
2
Associate Company:
3
4
5
6
7
8
9
10
11
12
13
Total
14
Other Long Term Debt
15
List Creditor:
16
17
18
19
20
21
22
23
24
25
26
27
28
Total


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XIII - Current and Accrued Liabilities
  1. Provide the balance of notes and accounts payable to each associate company (Accounts 233 and 234).
  2. Give description and amount of miscellaneous current and accrued liabilities (Account 242). Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
Balance at Beginning of Year
(c)
Balance at Close of Year
(d)
1
Notes Payable to Associate Companies
2
Associate Company:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
Subtotal (Total of Lines 3-22)
259,331,329
224,735,513
24
Accounts Payable to Associate Companies
25
Associate Company:
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40
Subtotal (Total of Lines 26-39)
80,276,576
52,165,446
41
Miscellaneous Current and Accrued Liabilities
42 Items List:
43
44
45
46
47
48
49
Subtotal (Total of Lines 43-48)
255,692,454
307,999,888
50
TOTAL (LINES 23, 40, AND 49)
595,300,359
584,900,847


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XIV - Notes to Financial Statements
  1. Use the space below for important notes regarding the financial statements or any account thereof.
  2. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year.
  3. Furnish particulars as to any significant increase in services rendered or expenses incurred during the year.
  4. Furnish particulars as to any amounts recorded in Account 434, Extraordinary Income, or Account 435, Extraordinary Deductions.
  5. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.
  6. Describe the annual statement supplied to each associate service company in support of the amount of interest on borrowed capital and compensation for use of capital billed during the calendar year. State the basis for billing of interest to each associate company. If a ratio, describe in detail how ratio is computed. If more than one ratio explain the calculation. Report the amount of interest borrowed and/or compensation for use of capital billed to each associate company.

 

  1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION

AEPSC is a wholly-owned subsidiary of AEP. AEPSC provides certain managerial and professional services, including administrative and engineering services, to affiliated companies in the AEP System and periodically to nonaffiliated companies. AEPSC also acts as an agent on behalf of affiliated companies in the AEP System for certain contractual arrangements, such as purchases and sales of risk management assets and liabilities. The activity associated with the agency relationship is excluded from AEPSC’s financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Rates and Service Regulation

AEPSC’s intercompany service billings, which are AEPSC’s fully allocated cost, including taxes, are regulated by the FERC under the 2005 Public Utility Holding Company Act and the Federal Power Act. The FERC also has jurisdiction over the issuances and acquisitions of securities of public utility subsidiaries, the acquisition or sale of certain utility assets and mergers with another electric utility or holding company. In addition, both the FERC and state regulatory commissions are permitted to review and audit the relevant books and records of companies within a public utility holding company system.

Accounting for the Effects of Cost-Based Regulation

As a cost-based regulated entity, AEPSC’s financial statements reflect the actions of regulators that result in the recognition of certain revenues and expenses in different time periods than enterprises that are not rate-regulated. In accordance with accounting guidance for “Regulated Operations,” AEPSC records regulatory assets (deferred expenses) and regulatory liabilities (deferred revenue reductions or refunds) in accordance with regulatory actions to match expenses and revenues in cost-based rates. Regulatory assets are expected to be recovered in future periods through billings to affiliated companies and regulatory liabilities are expected to reduce future billings to affiliated companies. In the event that a portion of AEPSC’s business no longer met those requirements, all amounts would be recoverable from affiliated companies. In the event AEPSC would require financing or other support outside the cost reimbursement billings, this financing would be provided by AEP. Costs charged to capitalized projects of AEPSC customers are included in the financial statements of AEPSC.

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include, but are not limited to, the effects of regulation, the effects of contingencies and certain assumptions made in accounting for pension and postretirement benefits. The estimates and assumptions used are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could ultimately differ from those estimates.

 

Cash and Cash Equivalents

Cash and Cash Equivalents include temporary cash investments with original maturities of three months or less.

 

Accounts Receivable

 

Accounts Receivable primarily includes receivables from affiliated companies for professional services rendered. AEPSC bills affiliated companies for services rendered on a monthly basis based on a work order system that is in accordance with the 2005 Public Utility Holding Company Act. The affiliated companies generally remit these payments within 30 days.

 

Property and Equipment

 

Property is stated at original cost. Depreciation is provided on a straight-line basis over the estimated useful lives of the property. The annual composite depreciation rate was 1.5% and 1.6% for the years ended December 31, 2018 and 2017, respectively.

 

Long-lived assets are required to be tested for impairment when it is determined that the carrying value of the assets may no longer be recoverable or when the assets meet the held-for-sale criteria under the accounting guidance for “Impairment or Disposal of Long-Lived Assets.”

 

The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, as opposed to a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and are used as the basis for the measurement, if available. In the absence of quoted prices for identical or similar assets in active markets, fair value is estimated using various internal and external valuation methods including cash flow analysis and appraisals.

 

Deferred Compensation

 

Investments include the cash surrender value of trust-owned life insurance policies held under a grantor trust to provide funds for nonqualified deferred compensation plans that AEPSC sponsors.

 

Valuation of Nonderivative Financial Instruments

 

The book values of Cash and Cash Equivalents, Advances to/from Affiliates, Accounts Receivable and Accounts Payable approximate fair value because of the short-term maturity of these instruments.

 


Fair Value Measurements of Assets and Liabilities

 

The accounting guidance for “Fair Value Measurements and Disclosures” establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. When quoted market prices are not available, pricing may be completed using comparable securities, dealer values, operating data and general market conditions to determine fair value. Valuation models utilize various inputs such as commodity, interest rate and, to a lesser degree, volatility and credit that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, market corroborated inputs (i.e. inputs derived principally from, or correlated to, observable market data) and other observable inputs for the asset or liability.

 

AEP utilizes its trustee’s external pricing service to estimate the fair value of the underlying investments held in the benefit plan trusts. AEP’s investment managers review and validate the prices utilized by the trustee to determine fair value. AEP’s investment managers perform their own valuation testing to verify the fair values of the securities. AEP receives audit reports of the trustee’s operating controls and valuation processes. The trustee uses multiple pricing vendors for the assets held in the trusts.

 

Assets in the benefits trusts are classified using the following methods. Equities are classified as Level 1 holdings if they are actively traded on exchanges. Items classified as Level 1 are investments in money market funds, fixed income and equity mutual funds and equity securities. They are valued based on observable inputs primarily unadjusted quoted prices in active markets for identical assets. Items classified as Level 2 are primarily investments in individual fixed income securities. Fixed income securities generally do not trade on exchanges and do not have an official closing price but their valuation inputs are based on observable market data. Pricing vendors calculate bond valuations using financial models and matrices. The models use observable inputs including yields on benchmark securities, quotes by securities brokers, rating agency actions, discounts or premiums on securities compared to par prices, changes in yields for U.S. Treasury securities, corporate actions by bond issuers, prepayment schedules and histories, economic events and, for certain securities, adjustments to yields to reflect changes in the rate of inflation. Other securities with model-derived valuation inputs that are observable are also classified as Level 2 investments. Investments with unobservable valuation inputs are classified as Level 3 investments. Investments classified as Other are valued using Net Asset Value as a practical expedient. Items classified as Other are primarily cash equivalent funds, common collective trusts, commingled funds, structured products, private equity, real estate, infrastructure and alternative credit investments. These investments do not have a readily determinable fair value or they contain redemption restrictions which may include the right to suspend redemptions under certain circumstances. Redemption restrictions may also prevent certain investments from being redeemed at the reporting date for the underlying value.

 


Revenues and Expenses

 

AEPSC provides certain managerial and professional services to both affiliated and nonaffiliated companies. The costs of the services are billed on a direct-charge basis, whenever possible. Costs incurred to perform services that benefit more than one company are allocated to the benefiting companies using one of 80 FERC accepted allocation factors. The allocation factors used to bill for services performed by AEPSC are based upon formulae that consider factors such as number of customers, number of employees, number of transmission pole miles, number of invoices and other factors. The data upon which these formulae are based are updated monthly, quarterly, semi-annually or annually, depending on the particular factor and its volatility. The billings for services are made at cost and include no compensation for a return on investment.

 

Income Taxes and Investment Tax Credits

 

AEPSC uses the liability method of accounting for income taxes. Under the liability method, deferred income taxes are provided for all temporary differences between the book and tax basis of assets and liabilities which will result in a future tax consequence. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. AEPSC revalued deferred tax assets and liabilities at the new federal corporate income tax rate of 21% in December 2017. See Note 6 - Income Taxes for additional information related to Tax Reform.

 

When the flow-through method of accounting for temporary differences is required by a regulator to be reflected in regulated revenues (that is, when deferred taxes are not included in the cost of service for determining regulated rates), deferred income taxes are recorded and related regulatory assets and liabilities are established to match the regulated revenues and tax expense.

 

AEPSC applies the deferral methodology for the recognition of ITC. Deferred ITC is amortized to income tax expense over the life of the asset that generated the credit. Amortization of deferred ITC begins when the asset is placed into service, except where regulatory commissions reflect ITC in the rate-making process, then amortization begins when the cash tax benefit is recognized.

 

AEPSC accounts for uncertain tax positions in accordance with the accounting guidance for “Income Taxes.” AEPSC classifies interest expense or income related to uncertain tax positions as interest expense or income as appropriate and classifies penalties as Other Operation expense.

 

Pension and OPEB Plans

 

AEPSC participates in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans. Substantially all of AEPSC’s employees are covered by the qualified plan or both the qualified and nonqualified pension plans. AEPSC also participates in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees. AEPSC accounts for its participation in the AEP sponsored pension and OPEB plans using multiple- employer accounting. See Note 5 - Benefit Plans for additional information including significant accounting policies associated with the plans.

 


Investments Held in Trust for Future Liabilities

AEP has several trust funds with significant investments intended to provide for future payments of pension and OPEB benefits. All of the trust funds’ investments are diversified and managed in compliance with all laws and regulations. The investment strategy for the trust funds is to use a diversified portfolio of investments to achieve an acceptable rate of return while managing the investment risk of the assets relative to the associated liabilities. To minimize investment risk, the trust funds are broadly diversified among classes of assets, investment strategies and investment managers. Management regularly reviews the actual asset allocations and periodically rebalances the investments to targeted allocations when appropriate. Investment policies and guidelines allow investment managers in approved strategies to use financial derivatives to obtain or manage market exposures and to hedge assets and liabilities. The investments are reported at fair value under the “Fair Value Measurements and Disclosures” accounting guidance.

 

Benefit Plans

 

All benefit plan assets are invested in accordance with each plan’s investment policy. The investment policy outlines the investment objectives, strategies and target asset allocations by plan.

 

The investment philosophies for AEP’s benefit plans support the allocation of assets to minimize risks and optimize net returns. Strategies used include:

 

    • Maintaining a long-term investment horizon.

    • Diversifying assets to help control volatility of returns at acceptable levels.

    • Managing fees, transaction costs and tax liabilities to maximize investment earnings.

    • Using active management of investments where appropriate risk/return opportunities exist.

    • Keeping portfolio structure style-neutral to limit volatility compared to applicable benchmarks.

    • Using alternative asset classes such as real estate and private equity to maximize return and provide additional portfolio diversification.

 


The objective of the investment policy for the pension fund is to maintain the funded status of the plan while providing for growth in the plan assets to offset the growth in the plan liabilities. The current target asset allocations are as follows:

 

Pension Plan Assets

Target

Equity

25%

Fixed Income

59%

Other Investments

15%

Cash and Cash Equivalents

1%

OPEB Plans Assets

Target

Equity

49%

Fixed Income

49%

Cash and Cash Equivalents

2%

 

The investment policy for each benefit plan contains various investment limitations. The investment policies establish concentration limits for securities and prohibit the purchase of securities issued by AEP (with the exception of proportionate and immaterial holdings of AEP securities in passive index strategies). However, the investment policies do not preclude the benefit trust funds from receiving contributions in the form of AEP securities, provided that the AEP securities acquired by each plan may not exceed the limitations imposed by law.

 

For equity investments, the concentration limits are as follows:

 

    • No security in excess of 5% of all equities.

    • Cash equivalents must be less than 10% of an investment manager’s equity portfolio.

    • No individual stock may be more than 10% and 7% for pension and OPEB investments, respectively, of each manager’s equity portfolio.

    • No investment in excess of 5% of an outstanding class of any company.

    • No securities may be bought or sold on margin or other use of leverage.

 

For fixed income investments, each investment manager’s portfolio is compared to investment grade, diversified long and intermediate benchmark indices.

 

A portion of the pension assets is invested in real estate funds to provide diversification, add return and hedge against inflation. Real estate properties are illiquid, difficult to value and not actively traded. The pension plan uses external real estate investment managers to invest in commingled funds that hold real estate properties. To mitigate investment risk in the real estate portfolio, commingled real estate funds are used to ensure that holdings are diversified by region, property type and risk classification. Real estate holdings include core, value-added and opportunistic classifications and some investments in Real Estate Investment Trusts, which are publicly traded real estate securities.

 

A portion of the pension assets is invested in private equity. Private equity investments add return and provide diversification and typically require a long-term time horizon to evaluate investment performance. Private equity is classified as an alternative investment because it is illiquid, difficult to value and not actively traded. The pension plan uses limited partnerships and commingled funds to invest across the private equity investment spectrum. The private equity holdings are with multiple general partners who help monitor the investments and provide investment selection expertise. The holdings are currently comprised of venture capital, buyout and hybrid debt and equity investment instruments.

 

AEP participates in a securities lending program with BNY Mellon to provide incremental income on idle assets and to provide income to offset custody fees and other administrative expenses. AEP lends securities to borrowers approved by BNY Mellon in exchange for collateral. All loans are collateralized by at least 102% of the loaned asset’s market value and the collateral is invested. The difference between the rebate owed to the borrower and the collateral rate of return determines the earnings on the loaned security. The securities lending program’s objective is to provide modest incremental income with a limited increase in risk. As of December 31, 2018 and 2017, the fair value of securities on loan as part of the program was $240.7 million and $491.8 million, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned as of December 31, 2018 and 2017.

 

Trust owned life insurance (TOLI) underwritten by The Prudential Insurance Company is held in the OPEB plan trusts. The strategy for holding life insurance contracts in the taxable Voluntary Employees’ Beneficiary Association trust is to minimize taxes paid on the asset growth in the trust. Earnings on plan assets are tax-deferred within the TOLI contract and can be tax-free if held until claims are paid. Life insurance proceeds remain in the trust and are used to fund future retiree medical benefit liabilities. With consideration to other investments held in the trust, the cash value of the TOLI contracts is invested in two diversified funds. A portion is invested in a commingled fund with underlying investments in stocks that are actively traded on major international equity exchanges. The other portion of the TOLI cash value is invested in a diversified, commingled fixed income fund with underlying investments in government bonds, corporate bonds and asset-backed securities.

 

Cash and cash equivalents are held in each trust to provide liquidity and meet short-term cash needs. Cash equivalent funds are used to provide diversification and preserve principal. The underlying holdings in the cash funds are investment grade money market instruments including commercial paper, certificates of deposit, treasury bills and other types of investment grade short-term debt securities. The cash funds are valued each business day and provide daily liquidity.

 

Stock-Based Compensation Plans

 

As of December 31, 2018, AEPSC had performance units and restricted stock units outstanding under the American Electric Power System 2015 Long-Term Incentive Plan (2015 LTIP). Upon vesting, performance units awarded prior to 2017 are settled in cash and restricted stock units are settled in AEP common shares, except for restricted stock units granted after January 1, 2013 and prior to January 1, 2017 that vest to executive officers, which are settled in cash. All performance units and restricted stock units awarded after January 1, 2017 will be settled in AEP common shares.

 

AEPSC maintains a variety of tax qualified and nonqualified deferred compensation plans for employees that include, among other options, an investment in or an investment return equivalent to that of AEP common stock. This includes AEP career shares maintained under the American Electric Power System Stock Ownership Requirement Plan (SORP), which facilitates executives in meeting minimum stock ownership requirements assigned to them by the Human Resources Committee of AEP’s Board of Directors. AEP career shares are derived from vested performance units granted to employees under the 2015 LTIP. AEP career shares accrue additional dividend shares in an amount equal to dividends paid on AEP common shares at the closing market price on the dividend payments date. All AEP career shares are paid out in AEP common stock after the executive’s service with AEP ends.

 

Performance units awarded after January 1, 2017 are classified as temporary equity in the Mezzanine Equity section on the Parent’s balance sheets. These awards may be settled in cash upon an employee’s qualifying termination due to a change in control. Because such event is not solely within the control of the company, these awards are classed outside of permanent equity.

 

AEPSC measures and recognizes compensation expense for all share-based payment awards to employees based on estimated fair values. For share-based payment awards with service only vesting conditions, AEPSC recognizes compensation expense on a straight-line basis. Stock-based compensation expense recognized on AEPSC’s statements of operations for the years ended December 31, 2018 and 2017 is based on the number of outstanding awards at the end of each period without a reduction for estimated forfeitures. AEPSC accounts for forfeitures in the period in which they occur.

 

For the years ended December 31, 2018 and 2017, compensation cost is included in Net Income for the performance units, career shares and restricted stock units. Compensation cost may also be capitalized. See Note 9 - Stock-based Compensation for additional information.

 

Contract Software Liabilities

 

On May 31, 2017, AEPSC entered into a 10-year strategic agreement with Oracle. The agreement provides perpetual unlimited deployment rights to Oracle’s catalog of on premise licenses, as long as support payments continue to be made in accordance with the contract terms. In total, $255 million (excluding sales tax) will be paid over the 10-year term for licenses and technical support. A capitalized software asset of $110 million, including sales tax, was recorded in June 2017 for the value of the licenses, and will depreciate over the 10-year term.

 

Subsequent Events

 

Management reviewed subsequent events through March 28, 2019, the date that AEPSC’s 2018 Annual Report was available to be issued.

 

  1. NEW ACCOUNTING PRONOUNCEMENTS

 

During FASB’s standard-setting process and upon issuance of final pronouncements, management reviews the new accounting literature to determine its relevance, if any, to AEPSC’s business. The following pronouncements will impact the financial statements.

 

ASU 2014-09 “Revenue from Contracts with Customers” (ASU 2014-09)

In May 2014, the FASB issued ASU 2014-09 changing the method used to determine the timing and requirements for revenue recognition on the statements of operations. Under the new standard, an entity must identify the performance obligations in a contract with a customer, determine the transaction price and allocate the price to specific performance obligations to recognize the revenue when the obligation is completed. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

 

Management adopted ASU 2014-09 effective January 1, 2018, by means of the modified retrospective approach for all contracts within the scope of the new standard. The adoption of ASU 2014-09 did not have a material impact on results of operations, financial position or cash flows. In that regard, the application of the new standard did not cause any significant differences in any individual financial statement line items had those line items been presented in accordance with the guidance that was in effect prior to the adoption of the new standard. Further, given the lack of material impact to the financial statements, the adoption of the new standard did not give rise to any material changes in AEPSC’s previously established accounting policies for revenue. See Note 10 - Revenue from Contracts with Customers for additional disclosures required by the new standard.

 

ASU 2016-02 “Accounting for Leases” (ASU 2016-02)

 

In February 2016, the FASB issued ASU 2016-02 increasing the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheets and disclosing key information about leasing arrangements. Under the new standard, an entity must recognize an asset and liability for operating leases on the balance sheets. Additionally, a capital lease will be known as a finance lease going forward. Leases with terms of 12 months or longer will be subject to the new requirements. Fundamentally, the criteria used to determine lease classification will remain the same, but will be more subjective under the new standard.

 

New leasing standard implementation activities included the identification of the lease population within the AEP System as well as the sampling of representative lease contracts to analyze accounting treatment under the new accounting guidance. Based upon the completed assessments, management also prepared a gap analysis to outline new disclosure compliance requirements.

 

Management adopted ASU 2016-02 effective January 1, 2019 by means of a cumulative-effect adjustment to the balance sheet. Management elected the following practical expedients upon adoption:

 

Practical Expedient

Description

Overall Expedients (for leases commenced prior to adoption date and must be adopted as a package)

 

Do not need to reassess whether any expired or existing contracts are/or contain leases, do not need to reassess the lease classification for any expired or existing leases and do not need to reassess initial direct costs for any existing leases.

Lease and Non-lease Components (elect by class of underlying asset)

 

Elect as an accounting policy to not separate non-lease components from lease components and instead account for each lease and associated non-lease component as a single lease component.

Short-term Lease (elect by class of underlying asset)

 

Elect as an accounting policy to not apply the recognition requirements to short-term leases.

Existing and expired land easements not previously accounted for as leases

 

Elect optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840

Cumulative-effect adjustment in the period of adoption

 

Elect the optional transition practical expedient to adopt the new lease requirements through a cumulative-effect adjustment on the balance sheet in the period of adoption

 

Management concluded that the result of adoption would not materially change the volume of contracts that qualify as leases going forward. The adoption of the new standard did not materially impact results of operations or cash flows, but did have a material impact on the balance sheet. The impact to the balance sheet has been estimated for the first quarter of 2019 as $80.5 million.

 


ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13)

 

In June 2016, the FASB issued ASU 2016-13 requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination.

 

The new accounting guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on results of operations. Management plans to adopt ASU 2016-13 and related implementation guidance effective January 1, 2020.

 

ASU 2017-07 “Compensation - Retirement Benefits” (ASU 2017-07)

 

In March 2017, the FASB issued ASU 2017-07 requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented on the statements of operations separately from the service cost component and outside of a subtotal of loss from operations. In addition, only the service cost component is eligible for capitalization as applicable following labor.

 

Management adopted ASU 2017-07 effective January 1, 2018. Presentation of the non-service components on a separate line outside of operating loss was applied on a retrospective basis, using the amounts disclosed in the benefit plan note for the estimation basis as a practical expedient. Capitalization of only the service cost component was applied on a prospective basis.

 

ASU 2018-14 “Disclosure Framework: Changes to the Disclosure Requirements for Defined Benefit Plans” (ASU 2018-14)

 

In August 2018, the FASB issued ASU 2018-14 modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this Update to Subtopic 715-20 remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant.


Management early adopted ASU 2018-14 for the 2018 Annual Report and applied the new standard retrospectively for all periods presented. As a result of adoption, AEPSC’s disclosures were updated as follows:

 

  • Amended the disclosure to remove the amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year.

  • Amended the disclosure to remove the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits.

  • Amended the disclosure to include the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates.

  • Amended the disclosure to include an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.

 

See Note 5 - Benefit Plans for updates to the disclosures required by the new standard.

 

ASU 2018-15 “Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (ASU 2018-15)

 

In August 2018, the FASB issued ASU 2018-15 aligning the requirements for capitalizing implementation costs incurred in a cloud computing arrangement (hosting arrangement) that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the accounting guidance for “Internal-Use Software” to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. To eliminate diversity in practice, the new standard changes the presentation of implementation costs for cloud service arrangements that are service contracts without the purchase of a license. Implementation costs for cloud service contracts will be presented on the balance sheets in the same manner as a prepayment. AEPSC currently presents implementation costs in property, plant and equipment on the balance sheets. Under the new standard, amortization of capitalized implementation costs of a hosting arrangement will be recorded in Operation and Maintenance expense over the term of the cloud service arrangement, rather than Depreciation and Amortization expense on the statements of operations. Payments for capitalized implementation costs in the statements of cash flows will be classified in the same manner as payments made for fees associated with the hosting element.

 

The new accounting guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The amendments may be applied either retrospectively or prospectively to applicable implementation costs incurred after the date of adoption. Management is analyzing the impact of this new standard and at this time, cannot estimate the impact of adoption on results of operations, financial position or cash flows. Management plans to adopt ASU 2018-15 prospectively, effective January 1, 2020.


  1. EFFECTS OF REGULATION

 

Recognized regulatory assets and liabilities are comprised of the following items:

 

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  1. This balance primarily represents regulatory liabilities for excess accumulated deferred income taxes (Excess ADIT) as a result of the reduction in the corporate federal income tax rate from 35% to 21% related to the enactment of Tax Reform. The Excess ADIT will be returned to affiliates using the average rate assumption method or over the remaining life of the underlying temporary differences.

(b) Refunded using Average Rate Assumption Method.

 


  1. COMMITMENTS, GUARANTEES AND CONTINGENCIES

 

AEPSC is subject to certain claims and legal actions arising in its ordinary course of business. The ultimate outcome of such pending or potential litigation cannot be predicted. For current proceedings not specifically discussed below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the financial statements.

 

COMMITMENTS

 

AEPSC has construction commitments to support its operations. In managing the overall construction program and in the normal course of business, AEPSC contractually commits to third-party construction vendors for certain material purchases and other construction services. AEPSC also purchases materials, supplies, services and property, plant and equipment under contract as part of its normal course of business. Certain supply contracts contain penalty provisions for early termination. In accordance with the accounting guidance for “Commitments”, AEPSC had the following contractual commitments as of December 31, 2018 and 2017 relating to contract software liabilities. See “Contract Software Liabilities” section of Note 1 for additional information.

 

[image] 

 

 

 

 

 

 

 

GUARANTEES

Liabilities for guarantees are recorded in accordance with the accounting guidance for “Guarantees.” There is no collateral held in relation to any guarantees. In the event any guarantee is drawn, there is no recourse to third parties unless specified below.

 

Letters of Credit

 

AEPSC enters into standby letters of credit with third parties. These letters of credit were issued in the ordinary course of business and cover items such as construction contracts, insurance programs, security deposits and debt service reserves. As of December 31, 2018, the maximum future payments of the letters of credit were $26.4 million with maturities ranging from February 2019 to December 2019.

 

Indemnifications and Other Guarantees

 

Contracts

 

AEPSC enters into certain types of contracts which require indemnifications. Typically, these contracts include, but are not limited to, sale agreements, lease agreements, purchase agreements and financing agreements. Generally, these agreements may include, but are not limited to, indemnifications around certain tax, contractual and environmental matters. With respect to sale agreements, exposure generally does not exceed the sale price. As of December 31, 2018, there were no material liabilities recorded for any indemnifications.

 

Lease Agreements

 

AEPSC leases certain equipment under master lease agreements. See “Master Lease Agreements” section of Note 7 for additional information on disclosure of lease residual value guarantees.

 

CONTINGENCIES

 

Insurance and Potential Losses

 

AEPSC maintains insurance coverage normal and customary for electric utilities, subject to various deductibles. AEPSC also maintains property and casualty insurance that may cover certain physical damage or third-party injuries caused by cyber security incidents. Insurance includes coverage for all risks of physical loss or damage to AEPSC assets, subject to insurance policy conditions and exclusions. Covered property generally includes AEPSC facilities. The insurance programs also generally provide coverage against loss arising from certain claims made by third parties. Coverage is generally provided by a combination of the protected cell of Energy Insurance Services and/or various industry mutual and/or commercial insurance carriers.

 

Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities. Future losses or liabilities, if they occur, which are not completely insured, would be recovered from affiliated companies.

 

  1. BENEFIT PLANS

 

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Fair Value Measurements of Assets and Liabilities” and “Investments Held in Trust for Future Liabilities” sections of Note 1.

 

AEPSC participates in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans. Substantially all of AEPSC’s employees are covered by the qualified plan or both the qualified and nonqualified pension plans. AEPSC also participates in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

 

AEPSC recognizes the funded status associated with defined benefit pension and OPEB plans on its balance sheets. Disclosures about the plans are required by the “Compensation - Retirement Benefits” accounting guidance. AEPSC recognizes an asset for a plan’s overfunded status or a liability for a plan’s underfunded status. AEPSC records a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that will be billed to affiliated companies.

 


Actuarial Assumptions for Benefit Obligations

 

The weighted-average assumptions used in the measurement of benefit obligations are shown in the following table:

Pension Plans OPEB December 31,

Assumption

2018

2017

2018

2017

Discount Rate

4.30%

3.65%

4.30%

3.60%

Interest Crediting Rate

4.00%

4.00%

NA

NA

Rate of Compensation Increase

4.90% (a)

4.80% (a)

NA

NA

 

(a) Rates are for base pay only. In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

NA Not applicable.

 

A duration-based method is used to determine the discount rate for the plans. A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability. The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.

 

For 2018, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with an average increase of 4.9%.

 

Actuarial Assumptions for Net Periodic Benefit Costs

 

The weighted-average assumptions used in the measurement of benefit costs are shown in the following table:

Pension Plans OPEB Years Ended December 31,

Assumption

2018

2017

2018

2017

Discount Rate

3.65%

4.05%

3.60%

4.10%

Interest Crediting Rate

4.00%

4.00%

NA

NA

Expected Return on Plan Assets

6.00%

6.00%

6.00%

6.75%

Rate of Compensation Increase

4.90% (a)

4.80% (a)

NA

NA

 

(a) Rates are for base pay only. In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

NA Not applicable.

 

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation, third party forecasts and current prospects for economic growth.

 

The health care trend rate assumptions used for OPEB plans measurement purposes are shown below:

December 31,

Health Care Trend Rates 2018 2017

Initial

6.25%

6.50%

Ultimate

5.00%

5.00%

Year Ultimate Reached

2024

2024

 

Significant Concentrations of Risk within Plan Assets

 

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets. The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits. The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment. Management monitors the plans to control security diversification and ensure compliance with the investment policy. As of December 31, 2018, the assets were invested in compliance with all investment limits. See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

 

Benefit Plan Obligations, Plan Assets and Funded Status

 

For the year ended December 31, 2018, the pension and OPEB plans had an actuarial gain due to an increase in the discount rate as well as updated estimates for future medical expenses in the OPEB plans. For the year ended December 31, 2017, the pension plans had an actuarial loss due to a decrease in the discount rate. The OPEB plans had an actuarial gain primarily due to a change in medical benefits for retirees which was partially offset by a decrease in the discount rate. The following table provides a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status. The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

Pension Plans OPEB

2018 2017 2018 2017

Change in Benefit Obligation (in thousands)

Benefit Obligation as of January 1,

$ 1,795,879

$ 1,718,652

$ 303,692

$ 324,597

Service Cost

34,391

32,983

3,377

3,283

Interest Cost

65,816

69,162

10,913

13,330

Actuarial (Gain) Loss

(74,070)

86,735

(20,393)

(19,891)

Benefit Payments

(139,946)

(111,653)

(28,692)

(26,683)

Participant Contributions

8,519

8,951

Medicare Subsidy

100

105

Benefit Obligation as of December 31,

$ 1,682,070

$ 1,795,879

$ 277,516

$ 303,692

 

Change in Fair Value of Plan Assets

 

 

 

 

Fair Value of Plan Assets as of January 1,

 

$ 1,613,457

 

$ 1,505,773

 

$ 417,738

 

$ 361,480

Actual Gain (Loss) on Plan Assets

 

(33,315)

 

179,500

 

(24,247)

 

73,990

Company Contributions (a)

 

9,379

 

39,837

 

2,502

 

Participant Contributions

 

 

 

8,519

 

8,951

Benefit Payments

 

(139,946)

 

(111,653)

 

(28,692)

 

(26,683)

Fair Value of Plan Assets as of December 31,

 

$ 1,449,575

 

$ 1,613,457

 

$ 375,820

 

$ 417,738

 

Funded (Underfunded) Status as of December 31,

 

 

$ (232,495)

 

 

$ (182,422)

 

 

$ 98,304

 

 

$ 114,046

 

(a) Contributions to the qualified pension plan were $0 and $35 million for the years ended December 31, 2018 and 2017, respectively. Contributions to the nonqualified pension plans were $9.4 million and $4.8 million for the years ended December 31, 2018 and 2017, respectively.

 

Amounts Recognized on the Balance Sheets

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Determination of Pension Expense

 

The determination of pension expense or income is based on a market-related valuation of assets which reduces year- to-year volatility. This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

 


Pension and OPEB Assets

 

The fair value tables within Pension and OPEB Assets presents the classification of assets for AEP within the fair value hierarchy. All Level 1, 2, 3 and Other amounts can be allocated to AEPSC using the percentages in the table below:

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The following table presents the classification of pension plan assets for AEP within the fair value hierarchy as of December 31, 2018:

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  1. Includes investment securities loaned to borrowers under the securities lending program. See the “Investments Held in Trust for Future Liabilities” section of Note 1 for additional information.

  2. Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

  3. Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.


The following table presents the classification of OPEB plan assets for AEP within the fair value hierarchy as of December 31, 2018:

 

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  1. Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

  2. Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.


The following table presents the classification of pension plan assets for AEP within the fair value hierarchy as of December 31, 2017:

 

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  1. Includes investment securities loaned to borrowers under the securities lending program. See the “Investments Held in Trust for Future Liabilities” section of Note 1 for additional information.

  2. Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

  3. Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.

 


 

The following table sets forth a reconciliation of changes in the fair value of AEP’s assets classified as Level 3 in the fair value hierarchy for the pension assets:

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(a) The classification of Level 3 assets from the prior year was corrected in the current year presentation and included within the fair value hierarchy table as of December 31, 2017 as “Other” investments for which fair value is measured using net asset value per share in accordance with ASU 2015-07, Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). Management concluded that these disclosure errors were immaterial individually and in the aggregate to all prior periods presented.

 


The following table presents the classification of OPEB plan assets for AEP within the fair value hierarchy as of December 31, 2017:

 

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  1. Amounts in “Other” column primarily represent accrued interest, dividend receivables and transactions pending settlement.

  2. Amounts in “Other” column represent investments for which fair value is measured using net asset value per share.

 

Accumulated Benefit Obligation

 

The accumulated benefit obligation for the pension plans is as follows:

 

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Obligations in Excess of Fair Values

 

The tables below show the underfunded pension plans that had obligations in excess of plan assets.

 

Projected Benefit Obligation

 

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Estimated Future Benefit Payments and Contributions

 

AEPSC expects contributions and payments for the pension and OPEB plans of $68.4 million and $702 thousand, respectively, during 2019. For the pension plans, this amount includes the payment of unfunded nonqualified benefits plus contributions to the qualified trust fund of at least the minimum amount required by the Employee Retirement Income Security Act. For the qualified pension plan, AEPSC may also make additional contributions to maintain the funded status of the plan.

The table below reflects the total benefits expected to be paid from the plan or from AEPSC’s assets. The payments include the participants’ contributions to the plan for their share of the cost. Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results. The estimated payments for pension benefits and OPEB are as follows:

Estimated Payments

Pension Plans OPEB (in thousands)

2019

$ 114,832 $

26,648

2020

115,631

28,089

2021

120,593

28,374

2022

123,077

28,520

2023

124,029

28,768

Years 2024 to 2028, in Total

626,482

149,203

 

Components of Net Periodic Benefit Cost

 

The following table provides the components of net periodic benefit cost (credit):

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American Electric Power System Retirement Savings Plan

 

AEPSC participates in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees. This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for company matching contributions. The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions. The cost for matching contributions totaled $26.9 million in 2018 and $27.4 million in 2017.

 

  1. INCOME TAXES

 

Federal Tax Reform and Legislation

 

In December 2017, Tax Reform legislation was signed into law. Tax Reform includes significant changes to the Internal Revenue Code of 1986, as amended, including lowering the corporate federal income tax rate from 35% to 21%. As a result of this rate change, AEPSC’s deferred tax assets and liabilities were remeasured using the newly enacted rate of 21% in December 2017. In response to Tax Reform, the SEC staff issued Staff Accounting Bulletin 118 (SAB 118) in December 2017. SAB 118 provided for up to a one year period (the measurement period) in which to complete the required analyses and accounting required by Tax Reform.

 

During 2017, AEPSC recorded provisional amounts for the income tax effects of Tax Reform. Throughout 2018, AEPSC continued to assess the impacts of legislative changes in the tax code as well as interpretative changes of the tax code. The measurement period adjustments recorded during 2018 were immaterial.

 


The measurement period under SAB 118 ended in December 2018. However, Tax Reform uncertainties still remain and AEPSC will continue to monitor income tax effects that may change as a result of future legislation and further interpretation of Tax Reform based on proposed U.S. Treasury regulations and guidance from the IRS and state tax authorities.

 

Federal Legislation

 

The IRS has proposed new regulations that provide guidance regarding the additional first-year depreciation deduction under Section 168(k). The proposed regulations reflect changes as a result of Tax Reform and affect taxpayers with qualified depreciable property acquired and placed in service after September 27, 2017. Generally, AEPSC’s regulated businesses will not be eligible for any bonus depreciation for property acquired and placed in service after January 1, 2018. However, for self-constructed property and other property placed in service in 2018 for which construction began prior to January 1, 2018, taxpayers are required to evaluate the contractual terms to determine if these additions qualify for 100% expensing under Tax Reform or 50% bonus depreciation as provided under prior tax law.

 

During the fourth quarter of 2018, the IRS proposed new regulations that reflect changes as a result of Tax Reform concerning potential limitations on the deduction of business interest expense. These regulations require an allocation of net interest expense between regulated and competitive businesses within the consolidated tax return. This allocation is based upon net tax basis, and the proposed regulations provide a de minimis test under which all interest is deductible if less than 10% is allocable to the competitive businesses. Management continues to review and evaluate the proposed regulations and at this time expect to be able to deduct materially all business interest expense under this de minimis provision.

 

Section 162(m) of the Internal Revenue Code generally limits the amount of compensation a company can deduct annually to $1 million for certain executive officers. The exemption from Section 162(m)’s deduction limit for performance-based compensation was repealed by Tax Reform, effective for taxable years ending after December 31, 2017. Management continues to evaluate whether any of its compensation plans qualify for transitional relief, such that payments made pursuant to these plans might be deductible.


Income Tax Expense

 

The details of AEPSC’s income taxes as reported are as follows:

 

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The following is a reconciliation of the difference between the amount of federal income taxes computed by multiplying book income before income taxes by the federal statutory tax rate and the amount of income taxes reported:

 

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The following table shows elements of AEPSC’s net deferred tax liability and significant temporary differences:

 

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AEP System Tax Allocation Agreement

 

AEPSC joins in the filing of a consolidated federal income tax return with its affiliates in the AEP System. The allocation of the AEP System’s current consolidated federal income tax to the AEP System companies allocates the benefit of current tax losses to the AEP System companies giving rise to such losses in determining their current tax expense. The consolidated net operating loss of the AEP System is allocated to each company in the consolidated group with taxable losses. The tax benefit of the Parent is allocated to its subsidiaries with taxable income. With the exception of the allocation of the consolidated AEP System net operating loss and the loss of the Parent and tax credits, the method of allocation reflects a separate return result for each company in the consolidated group.

 

Federal and State Income Tax Audit Status

 

AEPSC and other AEP subsidiaries are no longer subject to U.S. federal examination for years before 2011. The IRS examination of years 2011 through 2013 started in April 2014. AEPSC and other AEP subsidiaries received a Revenue Agents Report in April 2016, completing the 2011 through 2013 audit cycle indicating an agreed upon audit. The 2011 through 2013 audit was submitted to the Congressional Joint Committee on Taxation for approval. The Joint Committee referred the audit back to the IRS exam team for further consideration. To resolve the issue under consideration, AEPSC and other AEP subsidiaries and the IRS exam team agreed to utilize the Fast Track Settlement Program in December 2017. The program was completed in March 2018 and tax years 2014 and 2015 were added to the IRS examination to reflect the impact of the Fast Track changes that were carried forward to 2014 and 2015. In June 2018, AEPSC and other AEP subsidiaries settled all outstanding issues under audit for tax years 2011-2015. The Joint Committee approved the settlement in November 2018. The settlement did not materially impact AEPSC’s net income, cash flows or financial condition. The IRS examination of 2016 began in October 2018.

 


AEPSC and other AEP subsidiaries file income tax returns in various state and local jurisdictions. These taxing authorities routinely examine the tax returns. AEPSC and other AEP subsidiaries are currently under examination in several state and local jurisdictions. However, it is possible that previously filed tax returns have positions that may be challenged by these tax authorities. Management believes that adequate provisions for income taxes have been made for potential liabilities resulting from such challenges and that the ultimate resolution of these audits will not materially impact net income. AEPSC is no longer subject to state or local income tax examinations by tax authorities for years before 2007.

 

Net Income Tax Operating Loss Carryforward

 

As of December 31, 2018 and 2017, AEPSC had a state income tax operating loss carryforwards of $27.2 million and

$21.9 million, respectively, for Oklahoma. As of December 31, 2018, AEPSC has recorded $1.6 million of deferred state income tax benefits. Management anticipates future taxable income will be sufficient to realize the state net income tax operating loss tax benefits before the state carryforward expires for Oklahoma.

 

Uncertain Tax Positions

 

AEPSC recognizes interest accruals related to uncertain tax positions in interest income or expense as applicable and penalties in Operation and Maintenance expense in accordance with the accounting guidance for “Income Taxes.”

 

AEPSC’s reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

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The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $447 thousand and $368 thousand for 2018 and 2017, respectively. Management believes there will be no significant net increase or decrease in unrecognized tax benefits within 12 months of the reporting date.

 

State Tax Legislation

 

In June 2018, the United States Supreme Court issued a decision which eliminated a physical presence requirement for the imposition of sales and use tax and instead applied an economic nexus concept. Although this case was specific to sales and use taxes, many states are beginning to consider whether they could also apply this economic nexus concept to income taxes. Management continues to monitor state legislation to determine whether it could create any income tax liability in any states in which AEPSC currently does not file.

 

  1. LEASES

 

Leases of structures, improvements, office furniture and miscellaneous equipment are for periods of up to 10 years and require payments of related property taxes, maintenance and operating costs. The majority of the leases have purchase or renewal options and will be renewed or replaced by other leases.

 

Lease rentals for both operating and capital leases are generally charged to Operation and Maintenance expense. The components of rental costs are as follows:

Years Ended December 31,

Lease Rental Costs

2018 2017

 

(in thousands)

Net Lease Expense on Operating Leases

$ 18,495 $ 15,968

Amortization of Capital Leases

21,546 20,708

Interest on Capital Leases

2,818 2,301

Total Lease Rental Costs

$ 42,859 $ 38,977

 

 

The following table shows the property and equipment under capital leases and related obligations recorded on AEPSC’s balance sheets:

December 31,

2018 2017

Property and Equipment Under Capital Leases

(in thousands)

Structures and Improvements

$ 22,580 $ 22,229

Office Furniture and Miscellaneous Equipment

119,972 117,793

Total Property and Equipment Under Capital Leases

142,552 140,022

Accumulated Amortization

51,077 47,691

Net Property and Equipment Under Capital Leases

$ 91,475 $ 92,331

 

Obligations Under Capital Leases

 

Noncurrent Liability

$ 70,481

$ 72,040

Liability Due Within One Year

20,990

20,291

Total Obligations Under Capital Leases

$ 91,471

$ 92,331

 


Future minimum lease payments consisted of the following as of December 31, 2018:

 

Noncancelable

Future Minimum Lease Payments Capital Leases Operating Leases

(in thousands)

2019

$ 25,660

$ 18,439

2020

20,711

17,220

2021

16,402

13,006

2022

12,396

10,285

2023

7,283

8,944

Later Years

67,902

23,393

Total Future Minimum Lease Payments

150,354

$ 91,287

Less Estimated Interest Element

58,883

 

Estimated Present Value of Future Minimum

Lease Payments $ 91,471

 

 

Master Lease Agreements

 

AEPSC leases certain equipment under master lease agreements. Under the lease agreements, the lessor is guaranteed a residual value up to a stated percentage of the equipment cost at the end of the lease term. If the actual fair value of the leased equipment is below the guaranteed residual value at the end of the lease term, AEPSC is committed to pay the difference between the actual fair value and the residual value guarantee. Historically, at the end of the lease term the fair value has been in excess of the amount guaranteed. As of December 31, 2018, the maximum potential loss for these lease agreements was approximately $6.1 million assuming the fair value of the equipment is zero at the end of the lease term.

 

  1. FINANCING ACTIVITIES

 

Corporate Borrowing Program AEP System

 

The AEP System uses a corporate borrowing program to meet the short-term borrowing needs of AEP’s subsidiaries. AEP has a direct financing relationship with AEPSC to meet its short-term needs. The amounts of outstanding borrowings from AEP as of December 31, 2018 and 2017 are included in Advances from Affiliates on AEPSC’s balance sheets. AEPSC’s direct borrowing activity with AEP is described in the following table:

 

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Maximum, minimum and average interest rates for funds borrowed from AEP are summarized in the following table:

 

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The amounts of interest expense related to direct borrowing activity with AEP included in Interest Expense on AEPSC’s statements of operations are in the following table:

 

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  1. STOCK-BASED COMPENSATION

 

AEPSC participates in AEP’s long-term incentive plan. The Amended and Restated American Electric Power System Long-Term Incentive Plan (the “Prior Plan”), was replaced prospectively for new grants by the American Electric Power System 2015 Long-Term Incentive Plan (the “2015 LTIP”) effective in April 2015. The 2015 LTIP was subsequently amended in September 2016. No new awards may be granted under the Prior Plan. The 2015 LTIP awards may be stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units, cash-based awards and other stock-based awards. AEPSC employees comprise the majority of participants and they hold the majority of shares and units outstanding under AEP’s share-based compensation plans. The following sections provide further information regarding each type of stock-based compensation award granted under these plans.

 

Stock Options

 

AEP did not grant stock options in 2018 or 2017. As of December 31, 2018, AEP has no outstanding stock options.

 


Performance Units

 

Performance units granted prior to 2017 are settled in cash rather than AEP common stock and do not reduce the aggregate share authorization. These performance units have a fair value upon vesting equal to the average closing market price of AEP common stock for the last 20 trading days of the performance period. Performance units granted from 2017 on will be settled in AEP common stock and will reduce the aggregate share authorization. In all cases the number of performance units held at the end of the three-year performance period is multiplied by the performance score for such period to determine the actual number of performance units that participants realize. The performance score can range from 0% to 200% and is determined at the end of the performance period based on performance measures, which include both performance and market conditions, established for each grant at the beginning of the performance period by the Human Resources Committee of AEP’s Board of Directors (HR Committee).

 

Certain employees must satisfy stock ownership requirements. If those employees have not met their stock ownership requirements, a portion or all of their performance units are mandatorily deferred as AEP career shares to the extent needed to meet their stock ownership requirement. AEP career shares are a form of non-qualified deferred compensation that has a value equivalent to shares of AEP common stock. AEP career shares are settled in AEP common stock after the participant’s termination of employment.

 

Amounts equivalent to cash dividends on both performance units and AEP career shares accrue as additional units. Management records compensation cost for performance units over an approximately three-year vesting period. The liability for the pre 2017 performance units is recorded in Employee Benefits and Pension Obligations on the balance sheet and is adjusted for changes in value. Performance units settled in shares are recorded as mezzanine equity on the Parent’s balance sheets and compensation cost is calculated at fair value using two metrics. Half is based on the total shareholder return measure, which is determined based on a third party Monte Carlo valuation. That metric does not change over the three-year vesting period. The other half is based on a three-year cumulative earnings per share metric which is adjusted quarterly for changes in performance relative to a target approved by the HR Committee.

 


The HR Committee awarded performance units and reinvested dividends on outstanding performance units and AEP Career Shares to AEPSC employees are as follows:

 

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  1. Awarded units in 2017 and 2018 are mezzanine equity awards.

  2. The vesting period for the reinvested dividends on performance units is equal to the remaining life of the related performance units. Dividends on AEP career shares vest immediately when the dividend is awarded but are not settled in AEP common stock until after the participant’s AEP employment ends.

  3. Awarded dividends in 2018 and 2017 were a mix of equity awards and liability awards.

 

Performance scores and final awards are determined and approved by the HR Committee in accordance with the pre- established performance measures within approximately one month after the end of the performance period. The performance scores for all performance periods were dependent on two equally-weighted performance measures: (a) three-year total shareholder return measured relative to a peer group of similar companies and (b) three-year cumulative earnings per share measured relative to a target approved by the HR Committee.

 


The certified performance scores and units earned by AEPSC employees for the three-year period ended December 31, 2018 and 2017 were as follows:

Years Ended December 31,

AEPSC Performance Units

2018

2017

Certified Performance Score

136.7%

164.8%

Performance Units Earned

637,837

749,293

Performance Units Mandatorily Deferred as AEP Career Shares

7,290

18,442

Performance Units Voluntarily Deferred into the Incentive

 

 

Compensation Deferral Program

42,786

 

32,529

Performance Units to be Settled in Cash

587,761

 

698,322

 

The settlements to AEPSC employees were as follows:

Years Ended December 31,

AEPSC Performance Units and AEP Career Shares 2018 2017

(in thousands)

Cash Settlements for Performance Units $ 52,590 $ 51,031 Cash Settlements for Career Share Distributions — 27

AEP Common Stock Settlements for Career Share Distributions 5,106 297

 

Monte Carlo Valuation

 

AEP engages a third party for a Monte Carlo valuation to calculate half of the fair value for the performance units awarded during and after 2017. The valuations use a lattice model and the expected volatility assumptions used were the historical volatilities for AEP and the members of their peer group. The Assumptions used in the Monte Carlo valuations for the years ended December 31, 2018 and 2017 were as follows:

Years Ended December 31,

Monte Carlo Valuation

2018

2017

Valuation Period (in years) (a)

2.87

2.86

Expected Volatility Minimum

14.77%

15.65%

Expected Volatility Maximum

26.72%

27.19%

Expected Volatility Average

17.90%

19.07%

Dividend Rate (b)

—%

—%

Risk Free Rate

2.34%

1.44%

 

    1. Period from award date to vesting date.

    2. Equivalent to reinvesting dividends.

 

 


Restricted Stock Units

 

The HR Committee grants restricted stock units (RSUs), which generally vest, subject to the participant’s continued employment, over at least three years in approximately equal annual increments. The RSUs accrue dividends as additional RSUs. The additional RSUs granted as dividends vest on the same date as the underlying RSUs. RSUs are converted into shares of AEP common stock upon vesting, except that RSUs granted prior to 2017 that vest to AEP’s executive officers are settled in cash. Executive officers are those officers who are subject to the disclosure requirements set forth in Section 16 of the Securities Exchange Act of 1934. For RSUs settled in shares, compensation cost is measured at fair value on the grant date and recorded over the vesting period. Fair value is determined by multiplying the number of RSUs granted by the grant date market closing price. For RSUs settled in cash, compensation cost is recorded over the vesting period and adjusted for changes in fair value until vested. The fair value at vesting is determined by multiplying the number of RSUs vested by the 20-day average closing price of AEP common stock. The maximum contractual term of outstanding RSUs is approximately 40 months from the grant date.

 

The HR Committee awarded RSUs, including additional units awarded as dividends as follows:

 

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The total fair value and total intrinsic value of restricted stock units vested were as follows:

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(a) Intrinsic value is calculated as market price at exercise date.


A summary of the status of AEP’s nonvested RSUs and changes during the year are as follows:

 

[image] 

 

 

 

 

 

 

 

 

AEP’s total aggregate intrinsic value of nonvested RSUs as of December 31, 2018 was $37 million and the weighted average remaining contractual life was 1.65 years.

 

Share-based Compensation Plans

 

For share-based payment arrangements the compensation cost, the actual tax benefit from the tax deductions for compensation cost recognized in income and the total compensation cost capitalized were as follows:

 

 

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(a) Compensation cost for share-based payment arrangements is included in Operation and Maintenance expenses on AEPSC’s statements of operations

(b) In December 2017, Tax Reform modified Section 162(m) of the Internal Revenue Code. Beginning after 2017, AEPSC can no longer deduct compensation expense in excess of $1 million for certain named executive officers. This will reduce the tax benefit going forward.

 

During the years ended December 31, 2018 and 2017, there were no significant modifications affecting any of AEP’s share-based payment arrangements.

 

As of December 31, 2018, AEPSC had $51 million of total unrecognized compensation cost related to unvested share- based compensation arrangements granted under the 2015 LTIP and Prior Plan. Unrecognized compensation cost related to unvested share-based arrangements will change as the fair value of performance units are adjusted each period and forfeitures for all award types are realized. AEPSC’s unrecognized compensation cost will be recognized over a weighted-average period of 1.26 years.

 


Under the 2015 LTIP and Prior Plan, AEP is permitted to use authorized but unissued shares, treasury shares, shares acquired in the open market specifically for distribution under these plans, or any combination thereof to fulfill share commitments. AEP’s current practice is to use authorized but unissued shares to fulfill share commitments. The number of shares used to fulfill share commitments is generally reduced to offset AEP’s tax withholding obligation.

 

  1. REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Disaggregated Revenues from Contracts with Customers

AEPSC’s revenue consists of revenue from providing certain managerial and professional services, including administrative and engineering services, primarily to affiliated companies which represent revenues from contracts with customers. AEPSC did not have alternative revenues for the year ended December 31, 2018.

 

Performance Obligations

 

AEPSC has performance obligations as part of its normal course of business. A performance obligation is a promise to transfer a distinct good or service, or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to a customer. The invoice practical expedient within the accounting guidance for “Revenue from Contracts with Customers” allows for the recognition of revenue from performance obligations in the amount of consideration to which there is a right to invoice the customer and when the amount for which there is a right to invoice corresponds directly to the value transferred to the customer.

 

The purpose of the invoice practical expedient is to depict an entity’s measure of progress toward completion of the performance obligation within a contract and can only be applied to performance obligations that are satisfied over time and when the invoice is representative of services provided to date. AEPSC elected to apply the invoice practical expedient to recognize revenue for performance obligations satisfied over time as the invoices from the respective revenue streams are representative of services or goods provided to date to the customer. Performance obligations for AEPSC are summarized as follows:

 

Sales to AEP Affiliates

 

AEPSC has performance obligations to provide certain managerial and professional services, including administrative and engineering services, to affiliated companies in the AEP System and periodically to nonaffiliated companies. AEPSC’s intercompany service billings, which are AEPSC’s fully allocated cost, including taxes, are regulated by the Federal Energy Regulatory Commission under the 2005 Public Utility Holding Company Act and the Federal Power Act.

 

Fixed Performance Obligations

 

As of December 31, 2018, there are no fixed performance obligations related to AEPSC.

 


Contract Assets and Liabilities

 

Contract assets are recognized when AEPSC has a right to consideration that is conditional upon the occurrence of an event other than the passage of time, such as future performance under a contract. AEPSC did not have any material contract assets as of December 31, 2018.

 

When AEPSC receives consideration, or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, they recognize a contract liability on the balance sheet in the amount of that consideration. Revenue for such consideration is subsequently recognized in the period or periods in which the remaining performance obligations in the contract are satisfied. AEPSC did not have any material contract liabilities as of December 31, 2018.

 

Accounts Receivable from Contracts with Customers

 

Amount of affiliated accounts receivable from contracts with customers included in Accounts Receivable - Affiliated Companies on the balance sheets were immaterial as of December 31, 2018 and January 1, 2018.

 

Contract Costs

 

Contract costs to obtain or fulfill a contract are accounted for under the guidance for “Other Assets and Deferred Costs” and presented as a single asset and are neither bifurcated nor reclassified between current and noncurrent assets on AEPSC’s balance sheets. Contract costs to acquire a contract are amortized in a manner consistent with the transfer of goods or services to the customer in Operation and Maintenance on AEPSC’s statements of operations. AEPSC did not have material contract costs as of December 31, 2018.


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XV - Comparative Income Statement
Line No.
Account Number
(a)
Title of Account
(b)
Current Year
(c)
Prior Year
(d)
1
OperatingRevenuesAbstract
SERVICE COMPANY OPERATING REVENUES
2
OperatingRevenues
Service Company Operating Revenues
1,571,412,373
1,461,160,558
3
OperatingExpensesAbstract
SERVICE COMPANY OPERATING EXPENSES
4
OperationExpense
Operation Expenses
743,195,096
671,577,028
5
MaintenanceExpense
Maintenance Expenses
115,530,763
104,071,510
6
DepreciationExpense
Depreciation Expenses
3,617,128
3,008,794
7
DepreciationExpenseForAssetRetirementCosts
Depreciation Expense for Asset Retirement Costs
8
AmortizationOfLimitedTermProperty
Amortization of Limited-Term Property
68,204
763,359
9
AmortizationOfOtherProperty
Amortization of Other Property
10
RegulatoryDebits
Regulatory Debits
11
RegulatoryCredits
Regulatory Credits
12
TaxesOtherThanIncomeTaxesOperatingIncome
Taxes Other Than Income Taxes, Operating Income
53,568,063
47,378,206
13
IncomeTaxesOperatingIncome
Income Taxes, Operating Income
15,332,865
37,486,067
14
ProvisionForDeferredIncomeTaxesOperatingIncome
Provision for Deferred Income Taxes, Operating Income
295,194,470
198,100,079
15
ProvisionForDeferredIncomeTaxesCreditOperatingIncome
Provision for Deferred Income Taxes - Credit , Operating Income
(a)
278,490,291
(b)
155,578,350
16
InvestmentTaxCreditAdjustmentsServiceCompanyProperty
Investment Tax Credit, Service Company Property
38,158
50,808
17
GainsFromDispositionOfServiceCompanyPlant
Gains from Disposition of Service Company Plant
18
LossesFromDispositionOfServiceCompanyPlant
Losses from Disposition of Service Company Plant
19
AccretionExpense
Accretion Expense
20
CostAndExpensesOfConstructionOrOtherServices
Costs and Expenses of Construction or Other Services
640,865,261
619,986,425
21
CostsAndExpensesOfMerchandisingJobbingAndContractWork
Costs and Expenses of Merchandising, Jobbing, and Contract Work
22
OperatingExpenses
TOTAL SERVICE COMPANY OPERATING EXPENSES (Total of Lines 4-21)
1,558,177,671
1,451,770,176
23
OperatingIncomeNet
NET SERVICE COMPANY OPERATING INCOME (Total of Lines 2 less 22)
13,234,702
9,390,382
24
OtherIncomeAbstract
OTHER INCOME
25
EquityInEarningsOfSubsidiaryCompanies
Equity in Earnings of Subsidiary Companies
26
InterestAndDividendIncome
Interest and Dividend Income
37,557
407,207
27
AllowanceForOtherFundsUsedDuringConstruction
Allowance for Other Funds Used During Construction
28
MiscellaneousNonoperatingIncome
Miscellaneous Income or Loss
1,409,017
1,424,768
29
GainOnDispositionOfProperty
Gain on Disposition of Property
30
OtherIncome
TOTAL OTHER INCOME (Total of Lines 25-29)
1,446,574
1,831,975
31
OtherIncomeAndDeductionsAbstract
OTHER INCOME DEDUCTIONS
32
LossOnDispositionOfProperty
Loss on Disposition of Property
33
MiscellaneousAmortization
Miscellaneous Amortization
34
Donations
Donations
420,891
259,218
35
LifeInsurance
Life Insurance
36
Penalties
Penalties
8,807
162,997
37
ExpendituresForCertainCivicPoliticalAndRelatedActivities
Expenditures for Certain Civic, Political and Related Activities
6,030,370
3,781,864
38
OtherDeductions
Other Deductions
760,448
2,210,114
39
OtherIncomeDeductions
TOTAL OTHER INCOME DEDUCTIONS (Total of Lines 32-38)
7,220,516
6,414,193
40
TaxesApplicableToOtherIncomeAndDeductionsAbstract
TAXES APPLICABLE TO OTHER INCOME AND DEDUCTIONS
41
TaxesOtherThanIncomeTaxesOtherIncomeAndDeductions
Taxes Other Than Income Taxes, Other Income and Deductions
21,053
1,374
42
IncomeTaxesOtherIncomeAndDeductions
Income Taxes, Other Income and Deductions
43
ProvisionForDeferredIncomeTaxesOtherIncomeAndDeductions
Provision for Deferred Income Taxes, Other Income and Deductions
44
ProvisionForDeferredIncomeTaxesCreditOtherIncomeAndDeductions
Provision for Deferred Income Taxes - Credit, Other Income and Deductions
45
InvestmentTaxCreditAdjustmentsNonutilityOperations
Investment Tax Credit, Other Income Deductions
46
TaxesApplicableToOtherIncomeAndDeductions
TOTAL TAXES APPLICABLE TO OTHER INCOME AND DEDUCTIONS (Total of Lines 41-45)
21,053
1,374
47
InterestChargesAbstract
INTEREST CHARGES
48
InterestOnLongTermDebt
Interest on Long-Term Debt
49
AmortizationOfDebtDiscountAndExpense
Amortization of Debt Discount and Expense
50
AmortizationOfPremiumOnDebtCredit
(less) Amortization of Premium on Debt- Credit
51
InterestOnDebtToAssociateCompanies
Interest on Debt to Associate Companies
5,457,237
3,505,462
52
OtherInterestExpense
Other Interest Expense
2,090,990
1,438,581
53
AllowanceForBorrowedFundsUsedDuringConstructionCredit
(less) Allowance for Borrowed Funds Used During Construction-Credit
108,520
137,253
54
InterestCharges
TOTAL INTEREST CHARGES (Total of Lines 48-53)
7,439,707
4,806,790
55
IncomeBeforeExtraordinaryItems
NET INCOME BEFORE EXTRAORDINARY ITEMS (Total of Lines 23, 30, minus 39, 46, and 54)
56
ExtraordinaryItemsAbstract
EXTRAORDINARY ITEMS
57
ExtraordinaryIncome
Extraordinary Income
58
ExtraordinaryDeductions
(less) Extraordinary Deductions
59
NetExtraordinaryItems
Net Extraordinary Items (Line 57 less Line 58)
60
IncomeTaxesExtraordinaryItems
(less) Income Taxes, Extraordinary
61
ExtraordinaryItemsAfterTaxes
Extraordinary Items After Taxes (Line 59 less Line 60)
62
NetIncomeLoss
NET INCOME OR LOSS/COST OF SERVICE (Total of Lines 55 and 61)


FOOTNOTE DATA

(a) Concept: ProvisionForDeferredIncomeTaxesCreditOperatingIncome
Original value: -278490291
(b) Concept: ProvisionForDeferredIncomeTaxesCreditOperatingIncome
Original value: -155578350

Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XVI - Analysis of Charges for Service - Associate and Nonassociate Companies
  1. Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
Line No.
Account Number
(a)
Title of Account
(b)
Associate Company Direct Cost
(c)
Associate Company Indirect Cost
(d)
Associate Company Total Cost
(e)
Nonassociate Company Direct Cost
(f)
Nonassociate Company Indirect Cost
(g)
Nonassociate Company Total Cost
(h)
Total Charges for Services Direct Cost
(i)
Total Charges for Services Indirect Cost
(j)
Total Charges for Services Total Cost
(k)
1
Depreciation Expense
3,617,128
3,617,128
3,617,128
3,617,128
2
Amortization Expense
68,204
68,204
68,204
68,204
3
Regulatory Debits/Credits - Net
4
Taxes Other Than Income Taxes
53,589,116
53,589,116
53,589,116
53,589,116
5
Income Taxes
15,332,865
15,332,865
15,332,865
15,332,865
6
Provision for Deferred Taxes
295,194,470
295,194,470
295,194,470
295,194,470
7
Provision for Deferred Taxes - Credit
278,490,291
278,490,291
278,490,291
278,490,291
8
Gain from Disposition of Service Company Plant
9
Losses from Disposition of Service Company Plant
10
Investment Tax Credit Adjustment
38,158
38,158
38,158
38,158
11
Accretion Expense
12
Costs and Expenses of Construction or Other Services
546,335,158
94,530,103
640,865,261
546,335,158
94,530,103
640,865,261
13
Costs and Expenses of Merchandising, Jobbing, and Contract Work for Associated Companies
14
Non-operating Rental Income
15
Equity in Earnings of Subsidiary Companies
16
Interest and Dividend Income
37,557
37,557
37,557
37,557
17
Allowance for Other Funds Used During Construction
18
Miscellaneous Income or Loss
1,687,897
278,880
1,409,017
1,687,897
278,880
1,409,017
19
Gain on Disposition of Property
20
Loss on Disposition Of Property
21
Miscellaneous Amortization
22
Donations
420,891
420,891
420,891
420,891
23
Life Insurance
24
Penalties
8,807
8,807
8,807
8,807
25
Expenditures for Certain Civic, Political and Related Activities
5,185,728
844,642
6,030,370
5,185,728
844,642
6,030,370
26
Other Deductions
627,425
133,023
760,448
627,425
133,023
760,448
27
Interest On Long-Term Debt
28
Amortization of Debt Discount and Expense
29
Amortization of Premium on Debt - Credit
30
Interest on Debt to Associate Companies
5,457,237
5,457,237
5,457,237
5,457,237
31
Other Interest Expense
2,090,990
2,090,990
2,090,990
2,090,990
32
Allowance for Borrowed Funds Used During Construction
108,520
108,520
108,520
108,520
33
Total Steam Power Generation Operation Expenses
46,101,866
9,109,586
55,211,452
46,101,866
9,109,586
55,211,452
34
Total Steam Power Generation Maintenance Expenses
13,742,503
2,518,785
16,261,288
13,742,503
2,518,785
16,261,288
35
Total Nuclear Power Generation Operation Expenses
62,172
738,581
800,753
62,172
738,581
800,753
36
Total Nuclear Power Generation Maintenance Expenses
841,469
282,260
1,123,729
841,469
282,260
1,123,729
37
Total Hydraulic Power Generation Operation Expenses
3,048,635
469,941
3,518,576
3,048,635
469,941
3,518,576
38
Total Hydraulic Power Generation Maintenance Expenses
1,013,769
189,972
1,203,741
1,013,769
189,972
1,203,741
39
Total Other Power Generation Operation Expenses
257,794
50,362
308,156
257,794
50,362
308,156
40
Total Other Power Generation Maintenance Expenses
140,128
22,854
162,982
140,128
22,854
162,982
41
Total Other Power Supply Operation Expenses
18,043,448
4,434,305
22,477,753
18,043,448
4,434,305
22,477,753
42
Operation Supervision and Engineering
52,270,530
13,833,894
66,104,424
52,270,530
13,833,894
66,104,424
43
Load Dispatch-Reliability
273
127
400
273
127
400
44
Load Dispatch-Monitor and Operate Transmission System
5,358,126
2,102,350
7,460,476
5,358,126
2,102,350
7,460,476
45
Load Dispatch-Transmission Service and Scheduling
4,579
4,579
4,579
4,579
46
Scheduling, System Control and Dispatch Services
47,793
47,793
47,793
47,793
47
Reliability Planning and Standards Development
965,691
489,105
1,454,796
965,691
489,105
1,454,796
48
Transmission Service Studies
164
37
201
164
37
201
49
Generation Interconnection Studies
50
Reliability Planning and Standards Development Services
51
Station Expenses (Major Only)
1,686,952
811,227
2,498,179
1,686,952
811,227
2,498,179
51.1
Operation of Energy Storage Equipment
52
Overhead Line Expenses (Major Only)
455,326
61,145
516,471
455,326
61,145
516,471
53
Underground Line Expenses (Major Only)
54
Transmission of Electricity by Others (Major Only)
55
Miscellaneous Transmission Expenses (Major Only)
18,604,700
3,325,000
21,929,700
18,604,700
3,325,000
21,929,700
56
Rents
92,638
92,638
92,638
92,638
57
Operation Supplies and Expenses (Nonmajor Only)
58
Total Transmission Operation Expenses
79,486,772
20,622,885
100,109,657
79,486,772
20,622,885
100,109,657
59
Maintenance Supervision and Engineering (Major Only)
242,668
426,999
669,667
242,668
426,999
669,667
60
Maintenance of Structures (Major Only)
110,038
29,628
139,666
110,038
29,628
139,666
61
Maintenance of Computer Hardware
203,972
44,901
248,873
203,972
44,901
248,873
62
Maintenance of Computer Software
2,253,393
506,786
2,760,179
2,253,393
506,786
2,760,179
63
Maintenance of Communication Equipment
24,508
14,921
39,429
24,508
14,921
39,429
64
Maintenance of Miscellaneous Regional Transmission Plant
65
Maintenance of Station Equipment (Major Only)
6,760,046
2,891,226
9,651,272
6,760,046
2,891,226
9,651,272
65.1
Maintenance of Energy Storage Equipment
66
Maintenance of Overhead Lines (Major Only)
3,098,002
2,128,297
5,226,299
3,098,002
2,128,297
5,226,299
67
Maintenance of Underground Lines (Major Only)
155,407
88,502
243,909
155,407
88,502
243,909
68
Maintenance of Miscellaneous Transmission Plant (Major Only)
660,646
120,497
781,143
660,646
120,497
781,143
69
Maintenance of Transmission Plant (Nonmajor Only)
70
Total Transmission Maintenance Expenses
13,508,680
6,251,757
19,760,437
13,508,680
6,251,757
19,760,437
71
Total Regional Market Operation Expenses
72
Total Regional Market Maintenance Expenses
73
Total Distribution Operation Expenses
17,850,515
6,403,680
24,254,195
17,850,515
6,403,680
24,254,195
74
Total Distribution Maintenance Expenses
3,335,612
1,616,570
4,952,182
3,335,612
1,616,570
4,952,182
75
Total Electric Operation and Maintenance Expenses
814,333,229
148,498,186
962,831,415
814,333,229
148,498,186
962,831,415
76
Production Expenses (Provide selected accounts in a footnote)
77
Total Other Gas Supply Operation Expenses
78
Total Underground Storage Operation Expenses
79
Total Underground Storage Maintenance Expenses
80
Total Other Storage Operation Expenses
81
Total Other Storage Maintenance Expenses
82
Total Liquefied Natural Gas Terminaling and Processing Operation Expenses
83
Total Liquefied Natural Gas Terminaling and Processing Maintenance Expenses
84
Operation Supervision and Engineering
85
System Control and Load Dispatching
86
Communication System Expenses
87
Compressor Station Labor and Expenses
88
Gas for Compressor Station Fuel
89
Other Fuel and Power for Compressor Stations
90
Mains Expenses
91
Measuring and Regulating Station Expenses
92
Transmission and Compression of Gas By Others
93
Other Expenses
94
Rents
95
Total Gas Transmission Operation Expenses
96
Maintenance Supervision and Engineering
97
Maintenance of Structures and Improvements
98
Maintenance of Mains
99
Maintenance of Compressor Station Equipment
100
Maintenance of Measuring And Regulating Station Equipment
101
Maintenance of Communication Equipment
102
Maintenance of Other Equipment
103
Total Gas Transmission Maintenance Expenses
104
Total Distribution Operation Expenses
105
Total Distribution Maintenance Expenses
106
Total Natural Gas Operation and Maintenance Expenses
107
Supervision
194,897
120,163
315,060
194,897
120,163
315,060
108
Meter reading expenses
476,394
299,153
775,547
476,394
299,153
775,547
109
Customer records and collection expenses
38,976,993
15,223,337
54,200,330
38,976,993
15,223,337
54,200,330
110
Uncollectible accounts
2,156
2,156
2,156
2,156
111
Miscellaneous customer accounts expenses
103,657
54,942
158,599
103,657
54,942
158,599
112
Total Customer Accounts Operation Expenses
39,754,097
15,697,595
55,451,692
39,754,097
15,697,595
55,451,692
113
Supervision
706,472
325,996
1,032,468
706,472
325,996
1,032,468
114
Customer assistance expenses
352,609
224,959
577,568
352,609
224,959
577,568
115
Informational And Instructional Advertising Expenses
2,956
2,956
2,956
2,956
116
Miscellaneous Customer Service And Informational Expenses
513,569
51,439
565,008
513,569
51,439
565,008
117
Total Service and Informational Operation Accounts
1,575,606
602,394
2,178,000
1,575,606
602,394
2,178,000
118
Supervision
4,448
2,641
7,089
4,448
2,641
7,089
119
Demonstrating and Selling Expenses
1,814,831
2,499
1,817,330
1,814,831
2,499
1,817,330
120
Advertising Expenses
121
Miscellaneous Sales Expenses
122
Total Sales Operation Expenses
1,819,279
5,140
1,824,419
1,819,279
5,140
1,824,419
123
Administrative and General Salaries
153,866,647
44,882,116
198,748,763
153,866,647
44,882,116
198,748,763
124
Office Supplies and Expenses
13,280,025
8,106,020
21,386,045
13,280,025
8,106,020
21,386,045
125
Outside Services Employed
40,102,275
18,069,890
58,172,165
40,102,275
18,069,890
58,172,165
126
Property Insurance
268,697
268,697
268,697
268,697
127
Injuries and Damages
4,544,796
33,347
4,578,143
4,544,796
33,347
4,578,143
128
Employee Pensions and Benefits
125,107,000
57,638
125,164,638
125,107,000
57,638
125,164,638
129
Regulatory Commission Expenses
5,929,704
866,349
6,796,053
5,929,704
866,349
6,796,053
130
General Advertising Expenses
287,638
55,963
343,601
287,638
55,963
343,601
131
Miscellaneous General Expenses
4,130,893
1,334,262
5,465,155
6,131,920
908,655
7,040,575
10,262,813
2,242,917
12,505,730
132
Rents
49,096,608
49,096,608
49,096,608
49,096,608
133
Total Administrative and General Operation Expenses
396,614,283
73,405,585
470,019,868
6,131,920
908,655
7,040,575
402,746,203
74,314,240
477,060,443
134
Maintenance of Structures and Equipment
71,048,081
1,018,323
72,066,404
71,048,081
1,018,323
72,066,404
135
Total Administrative and General Maintenance Expenses
510,811,346
90,729,037
601,540,383
6,131,920
908,655
7,040,575
516,943,266
91,637,692
608,580,958
136
Total Cost of Service
1,325,144,575
239,227,223
1,564,371,798
6,131,920
908,655
7,040,575
1,331,276,495
240,135,878
1,571,412,373


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XVII - Analysis of Billing - Associate Companies (Account 457)
  1. For services rendered to associate companies (Account 457), list all of the associate companies.
Line No.
AssociateCompanyName
Name of Associate Company
(a)
DirectCostsChargedToAssociateCompanies
Account 457.1 Direct Costs Charged
(b)
IndirectCostsChargedToAssociateCompanies
Account 457.2 Indirect Costs Charged
(c)
CompensationForUseOfCapitalAssociateCompanies
Account 457.3 Compensation for Use of Capital
(d)
ServicesRenderedToAssociateCompanies
Total Amount Billed
(e)
1
AEP Amazon
1,541
212
1,753
2
AEP Appalachian Transmission Company, Inc.
3,029,735
683,122
21,643
3,734,500
3
AEP C&I Company LLC
146,322
21,505
3,820
171,647
4
AEP Coal, Inc.
8,255
1,092
9,347
5
AEP Credit, Inc.
988,286
57,059
4,902
1,050,247
6
AEP Desert Sky GP, LLC
542
69
611
7
AEP Desert Sky LP II, LLC
672
84
756
8
AEP Energy Partners, Inc.
6,186,316
861,874
45,261
7,093,451
9
AEP Energy Service Gas Holding Company
21,732
2,643
24,375
10
AEP Energy Services, Inc.
791,615
131,830
4,370
927,815
11
AEP Energy Supply LLC
290,575
36,777
4,753
332,105
12
AEP Energy, Inc
2,676,368
275,805
13,790
2,965,963
13
AEP Generating Company
1,452,771
198,925
8,414
1,660,110
14
AEP Generation Resources
16,954,901
3,306,673
131,889
20,393,463
15
AEP Indiana Michigan Transmission Company, Inc.
44,344,910
9,212,729
299,866
53,857,505
16
AEP Investments, Inc.
4,683,511
21,288
4,662,223
17
AEP Kentucky Coal, LLC
7,699
732
8,431
18
AEP Kentucky Transmission Company, Inc.
3,861,102
981,382
30,558
4,873,042
19
AEP Nonutility Funding LLC
13,040
1,537
80
14,657
20
AEP Ohio Transmission Company, Inc.
75,792,714
17,734,604
490,615
94,017,933
21
AEP Oklahoma Transmission Company, Inc.
18,986,699
3,349,282
119,656
22,455,637
22
AEP OnSite Partners, LLC
1,954,270
223,699
12,909
2,190,878
23
AEP Pro Serv, Inc.
1,166,743
163,848
5,587
1,336,178
24
AEP Properties, L.L.C.
103
13
116
25
AEP Renewables, LLC
676,517
86,352
2,544
765,413
26
AEP Retail Energy Partners LLC
37,937
855
2
38,790
27
AEP Southwestern Transmission Company, Inc.
69,078
8,313
372
77,763
28
AEP System Pool
1,430
1,592
3,022
29
AEP T&D Services, LLC
580,457
67,681
3,943
652,081
30
AEP Texas Company
157,737,520
25,558,056
1,049,103
184,344,679
31
AEP Transmission Company, LLC
106,384
13,102
341
92,941
32
AEP Transmission Holding Company, LLC
1,033,339
136,831
8,450
1,178,620
33
AEP Transmission Partner LLC
1,711
232
1,943
34
AEP Utility Funding LLC
177,198
37,687
88
214,797
35
AEP West Virginia Transmission Company, Inc.
32,663,462
7,415,439
186,696
40,265,597
36
AEP Wind GP, LLC
230
25
255
37
AEP Wind Holding Company, LLC
20,787
3,023
23,810
38
AEP Wind LP II, LLC
353
38
391
39
American Electric Power Company
8,618,957
4,065,551
42,347
12,726,855
40
Appalachian Power Company
247,569,633
46,363,178
1,674,274
295,607,085
41
Blackhawk Coal Company
11,332
1,022
12,354
42
Bold Transmission, LLC
641,530
105,118
746,648
43
BSE Solutions LLC
2,698
349
19
3,066
44
Cardinal Operating Company
1,749,028
285,046
11,082
2,045,156
45
Cedar Coal Company
1,343
186
1,529
46
Central Appalachian Coal Company
1,404
177
1,581
47
Central Coal Company
1,479
200
1,679
48
Conesville Coal Preparation Company
3,767
527
4,294
49
CSW Energy, Inc.
2,922,144
309,692
28,222
3,260,058
50
Desert Sky Wind Farm LLC
110,273
12,725
122,998
51
Desert Sky Wind Farm LP
54,660
6,340
61,000
52
Dolet Hills Lignite Co, LLC
4,311,098
574,018
26,420
4,911,536
53
Electric Transmission America
13,592
1,794
66
15,452
54
Electric Transmission TX, LLC
26,366,175
3,759,240
166,493
30,291,908
55
Franklin Real Estate Company
2,372
302
2,674
56
Grid Assurance LLC
1,108,506
172,588
1,281,094
57
Indiana Franklin Realty, Inc.
18
3
21
58
Indiana Michigan Power Company
149,537,493
22,893,356
1,009,136
173,439,985
59
Jacumba Solar LLC
727
101
828
60
Kentucky Power Company
59,878,617
10,921,633
391,022
71,191,272
61
Kingsport Power Company
5,465,200
1,107,281
32,587
6,605,068
62
Kyte Works, LLC
38,697
4,592
43,289
63
Ohio Franklin Realty, LLC
676,653
279,820
956,473
64
Ohio Power Company
179,298,989
34,453,696
1,180,463
214,933,148
65
Oxbow Lignite Company, LLC
104,565
8,728
113,293
66
PATH WV Transmission Company, LLC
21
21
67
Public Liability
1,367
1,367
68
Public Service Company of Oklahoma
102,687,951
18,112,104
730,283
121,530,338
69
RITELine Indiana, LLC
10,303
1,365
97
11,765
70
Snowcap Coal Company, Inc.
18,436
1,552
19,988
71
Solar LLCs
25,130
3,255
28,385
72
Southern Appalachian Coal Company
1,509
193
1,702
73
Southwestern Electric Power Company
140,727,960
22,793,064
918,172
164,439,196
74
Transource Energy, LLC
2,545,580
322,475
22,700
2,890,755
75
Transource Maryland
1,178,257
90,533
619
1,269,409
76
Transource Missouri, LLC
1,651,883
179,709
10,405
1,841,997
77
Transource Pennsylvania
2,217,521
209,207
7,469
2,434,197
78
Transource West Virginia, LLC
1,385,331
292,036
8,853
1,686,220
79
Trent Wind Farm LLC
220,014
8,097
228,111
80
Trent Wind Farm LP
290,099
26,487
316,586
81
United Sciences Testing, Inc.
2,557,989
236,232
14,396
2,808,617
82
Wheeling Power Company
5,484,446
1,027,641
38,238
6,550,325
40 Total
(a)
1,316,381,740
(b)
239,227,223
(c)
8,762,835
(d)
1,564,371,798


FOOTNOTE DATA

(a) Concept: DirectCostsChargedToAssociateCompanies
Duplicate fact discrepancy. Schedule: 017 - Schedule - Analysis of Billing - Associate Companies (Account 457), Row: 40, Column: b, Value: 0
(b) Concept: IndirectCostsChargedToAssociateCompanies
Duplicate fact discrepancy. Schedule: 017 - Schedule - Analysis of Billing - Associate Companies (Account 457), Row: 40, Column: c, Value: 0
(c) Concept: CompensationForUseOfCapitalAssociateCompanies
Duplicate fact discrepancy. Schedule: 017 - Schedule - Analysis of Billing - Associate Companies (Account 457), Row: 40, Column: d, Value: 0
(d) Concept: ServicesRenderedToAssociateCompanies
Duplicate fact discrepancy. Schedule: 017 - Schedule - Analysis of Billing - Associate Companies (Account 457), Row: 40, Column: e, Value: 0

Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XVIII - Analysis of Billing - Non-Associate Companies (Account 458)
  1. For services rendered to nonassociate companies (Account 458), list all of the nonassociate companies. In a footnote, describe the services rendered to each respective nonassociate company.
Line No.
NonAssociateCompanyName
Name of Non-associate Company
(a)
DirectCostsChargedToNonAssociateCompanies
Account 458.1 Direct Costs Charged
(b)
IndirectCostsChargedToNonAssociateCompanies
Account 458.2 Indirect Costs Charged
(c)
CompensationForUseOfCapitalNonAssociateCompanies
Account 458.3 Compensation for Use of Capital
(d)
ExcessOrDeficiencyOnServicingNonAssociateUtilityCompanies
Account 458.4 Excess or Deficiency on Servicing Non-associate Utility Companies
(e)
ServicesRenderedToNonAssociateCompanies
Total Amount Billed
(f)
1
Dynegy
16,011
(a)
16,011
2
Indiana Kentucky Electric Company
1,577,014
176,173
(b)
1,753,187
3
Lightstone
37,123
(c)
37,123
4
Ohio Valley Electric Company
4,501,772
732,482
(d)
5,234,254
40 Total
6,131,920
908,655
7,040,575


FOOTNOTE DATA

(a) Concept: ServicesRenderedToNonAssociateCompanies

Dynegy

 

 

 

The services provided to Dynegy are primarily the result of labor, labor fringes and contract labor for use of the AEP Simulator Learning Center.

(b) Concept: ServicesRenderedToNonAssociateCompanies

Indiana Kentucky Electric Corporation

 

 

The services provided to Indiana Kentucky Electric Corporation are primarily the result of labor, labor fringes and contract labor for Clifty Creek.

(c) Concept: ServicesRenderedToNonAssociateCompanies

Lightstone

 

 

 

The services provided to Lightstone are primarily the result of labor, labor fringes and contract labor for use of the AEP Simulator Learning Center.

(d) Concept: ServicesRenderedToNonAssociateCompanies

Ohio Valley Electric Corporation

 

 

 

The services provided to Ohio Valley Electric Corporation are primarily the result of labor, labor fringes and contract labor for Kyger Creek.


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XIX - Miscellaneous General Expenses - Account 930.2
  1. Provide a listing of the amount included in Account 930.2, "Miscellaneous General Expenses" classifying such expenses according to their nature. Amounts less than $50,000 may be grouped showing the number of items and the total for the group.
  2. Payments and expenses permitted by Section 321 (b)(2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. 441(b)(2)) shall be separately classified.
Line No.
MiscellaneousGeneralExpensesDescription
Title of Account
(a)
MiscellaneousGeneralExpenses
Amount
(b)
1
Salary, Salary related Expense and Overheads
4,844,374
2
Outside Professional Services
4,499,183
3
Membership Fees and Dues
1,774,214
4
Employee Expenses
517,583
5
Fleet Services
463,189
6
Materials and Supplies
141,946
7
Telephone & Communication Expense
59,045
8
Other - 6 Items
206,196
40
Total
12,505,730


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XX - Organization Chart
  1. Provide a graphical presentation of the relationships and inter relationships within the service company that identifies lines of authority and responsibility in the organization.
OrganizationChart_29_2018.html


Name of Respondent:

American Electric Power Service Corporation
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XXI - Methods of Allocation
  1. Indicate the service department or function and the basis for allocation used when employees render services to more than one department or functional group. If a ratio, include the numerator and denominator.
  2. Include any other allocation methods used to allocate costs.

Chief Administrative Officer

 

Service Department or Function

Basis of Allocation

Corporate Human Resources

5 Number of CIS Customers Mail

 

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

16 Number of Phone Center Calls

 

17 Number of Purchase Orders

 

20 Number of Remittance Items

 

26 Number of Stores Transactions

 

27 Number of Telephones

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

53 Past 3 Mo MMBTU (Gas)

 

55 Past 3 MMBTU Burned (Solid)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

 

Hydro MW Generating Capability

 

67 Number of Banking Transactions

 

70 No Nonelectric OAR Invoices

 

77 Power Transactn to All Markets

Information Technology

5 Number of CIS Customers Mail

 

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

16 Number of Phone Center Calls

 

17 Number of Purchase Orders

 

20 Number of Remittance Items

 

26 Number of Stores Transactions

 

27 Number of Telephones

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

53 Past 3 Mo MMBTU (Gas)

 

55 Past 3 MMBTU Burned (Solid)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

 

Hydro MW Generating Capability

 

67 Number of Banking Transactions

 

70 No Nonelectric OAR Invoices

 

77 Power Transactn to All Markets

Real Estate & Workplace Svcs

5 Number of CIS Customers Mail

 

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

16 Number of Phone Center Calls

 

17 Number of Purchase Orders

 

20 Number of Remittance Items

 

26 Number of Stores Transactions

 

27 Number of Telephones

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

53 Past 3 Mo MMBTU (Gas)

 

55 Past 3 MMBTU Burned (Solid)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

 

Hydro MW Generating Capability

 

67 Number of Banking Transactions

 

70 No Nonelectric OAR Invoices

 

77 Power Transactn to All Markets

Charge

8 Number of Electric Retail Customers

 

9 Number of Employees

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

Chief Administrative Officer Administration

8 Number of Electric Retail Customers

 

9 Number of Employees

 

17 Number of Purchase Orders

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

45 Level of Const-Production

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

Chief Executive Officer

 

Service Department or Function

Basis of Allocation

Audit Services

9 Number of Employees

 

11 Number of GL Transactions

 

17 Number of Purchase Orders

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

53 Past 3 Mo MMBTU (Gas)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

Legal

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

16 Number of Phone Center Calls

 

17 Number of Purchase Orders

 

20 Number of Remittance Items

 

26 Number of Stores Transactions

 

27 Number of Telephones

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

53 Past 3 Mo MMBTU (Gas)

 

55 Past 3 MMBTU Burned (Solid)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

 

Hydro MW Generating Capability

Chief Executive Officer Administration

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

16 Number of Phone Center Calls

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Chief Financial Officer

 

Service Department or Function

Basis of Allocation

Corporate Accounting

5 Number of CIS Customers Mail

 

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

17 Number of Purchase Orders

 

20 Number of Remittance Items

 

26 Number of Stores Transactions

 

28 Number of Trans Pole Miles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

48 MW Generating Capability

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

 

70 No Nonelectric OAR Invoices

Corporate Planning & Budgeting

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

64 Member/Peak Load

Investor Relations

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

Risk and Strategic Initiatives

8 Number of Electric Retail Customers

 

9 Number of Employees

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

52 Past 3 Mo MMBTU Burned (Coal)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

64 Member/Peak Load

 

77 Power Transactn to All Markets

Supply Chain & Fleet Operations

8 Number of Electric Retail Customers

 

9 Number of Employees

 

17 Number of Purchase Orders

 

26 Number of Stores Transactions

 

27 Number of Telephones

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Treasury

9 Number of Employees

 

11 Number of GL Transactions

 

20 Number of Remittance Items

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

64 Member/Peak Load

 

67 Number of Banking Transactions

Chief Financial Officer Administration

9 Number of Employees

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

Energy Supply

 

Service Department or Function

Basis of Allocation

Commercial Operations

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

48 MW Generating Capability

 

49 MWH's Generation

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

Energy Supply Administration

39 100% to One Company

 

58 Total Assets

External Affairs

 

Service Department or Function

Basis of Allocation

Chief Customer Officer

5 Number of CIS Customers Mail

 

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

16 Number of Phone Center Calls

 

17 Number of Purchase Orders

 

20 Number of Remittance Items

 

26 Number of Stores Transactions

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

52 Past 3 Mo MMBTU Burned (Coal)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

70 No Nonelectric OAR Invoices

Corporate Communications

8 Number of Electric Retail Customers

 

9 Number of Employees

 

16 Number of Phone Center Calls

 

17 Number of Purchase Orders

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Federal Affairs

8 Number of Electric Retail Customers

 

9 Number of Employees

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

Regulatory Services

8 Number of Electric Retail Customers

 

9 Number of Employees

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

46 Level of Const-Transmission

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

64 Member/Peak Load

External Affairs Administration

5 Number of CIS Customers Mail

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

16 Number of Phone Center Calls

 

28 Number of Trans Pole Miles

 

32 Number of Vendor Invoice Pay

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

48 MW Generating Capability

 

52 Past 3 Mo MMBTU Burned (Coal)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

Generation

 

Service Department or Function

Basis of Allocation

Environmental Services

8 Number of Electric Retail Customers

 

9 Number of Employees

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

Fossil and Hydro Generation

8 Number of Electric Retail Customers

 

9 Number of Employees

 

17 Number of Purchase Orders

 

26 Number of Stores Transactions

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

52 Past 3 Mo MMBTU Burned (Coal)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

Generation Business Services

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

52 Past 3 Mo MMBTU Burned (Coal)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

Generation Engineering and Technical Services - Engineering Services

9 Number of Employees

 

17 Number of Purchase Orders

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

49 MWH's Generation

 

51 Past 3 Mo MMBTU's Burned (Tot)

 

52 Past 3 Mo MMBTU Burned (Coal)

 

55 Past 3 MMBTU Burned (Solid)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

Generation Engineering and Technical Services - Project and Construction

8 Number of Electric Retail Customers

 

9 Number of Employees

 

17 Number of Purchase Orders

 

31 Number of Vehicles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

48 MW Generating Capability

 

49 MWH's Generation

 

52 Past 3 Mo MMBTU Burned (Coal)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Regulated Commercial Operations

8 Number of Electric Retail Customers

 

9 Number of Employees

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

45 Level of Const-Production

 

48 MW Generating Capability

 

49 MWH's Generation

 

52 Past 3 Mo MMBTU Burned (Coal)

 

53 Past 3 Mo MMBTU (Gas)

 

57 Tons of Fuel Acquired

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

64 Member/Peak Load

Generation Administration

8 Number of Electric Retail Customers

 

9 Number of Employees

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

63 Total Gross Utility Plant

Transmission

 

Service Department or Function

Basis of Allocation

Corporate Safety & Health

8 Number of Electric Retail Customers

 

9 Number of Employees

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

Transmission Field Services

8 Number of Electric Retail Customers

 

9 Number of Employees

 

17 Number of Purchase Orders

 

28 Number of Trans Pole Miles

 

31 Number of Vehicles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Trans Ventures Strategy&Policy

8 Number of Electric Retail Customers

 

9 Number of Employees

 

11 Number of GL Transactions

 

28 Number of Trans Pole Miles

 

32 Number of Vendor Invoice Pay

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

53 Past 3 Mo MMBTU (Gas)

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Transmission Business Operations Programs

9 Number of Employees

 

26 Number of Stores Transactions

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

46 Level of Const-Transmission

 

49 MWH's Generation

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

Transmission Grid Development

8 Number of Electric Retail Customers

 

9 Number of Employees

 

17 Number of Purchase Orders

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

40 Equal Share Ratio

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

 

63 Total Gross Utility Plant

 

67 Number of Banking Transactions

Transmission Administration

9 Number of Employees

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

46 Level of Const-Transmission

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

Utilities

 

Service Department or Function

Basis of Allocation

Utility Operations

6 Number of Commercial Customers

 

8 Number of Electric Retail Customers

 

9 Number of Employees

 

28 Number of Trans Pole Miles

 

33 Number of Workstations

 

37 AEPSC Past 3 Months Total Bill

 

39 100% to One Company

 

44 Level of Const-Distribution

 

45 Level of Const-Production

 

46 Level of Const-Transmission

 

48 MW Generating Capability

 

58 Total Assets

 

60 AEPSC Bill less Indir and Int

 

61 Total Fixed Assets

XBRL Instance File
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