v3.25.2
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Book Values and Fair Values of Long-term Debt
The book values and fair values of Long-term Debt are summarized in the following table:
June 30, 2025December 31, 2024
CompanyBook ValueFair ValueBook ValueFair Value
(in millions)
AEP$44,525.5 $41,138.3 $42,642.8 $38,964.7 
AEP Texas6,832.3 6,303.0 6,441.6 5,831.4 
AEPTCo6,098.5 5,346.8 5,768.1 4,853.1 
APCo5,772.0 5,577.2 5,660.3 5,346.0 
I&M3,510.9 3,250.4 3,494.3 3,153.8 
OPCo3,717.1 3,138.3 3,715.7 3,203.4 
PSO3,524.0 3,310.8 2,855.6 2,562.1 
SWEPCo3,983.0 3,593.4 3,980.8 3,431.5 
Schedule of Available-For-Sale Securities
The following is a summary of Other Temporary Investments and Restricted Cash:
June 30, 2025
GrossGross
UnrealizedUnrealizedFair
Other Temporary Investments and Restricted CashCostGainsLossesValue
(in millions)
Restricted Cash (a)$51.3 $— $— $51.3 
Other Cash Deposits16.1 — — 16.1 
Fixed Income Securities – Mutual Funds (b)159.8 — (3.0)156.8 
Equity Securities – Mutual Funds14.0 25.1 — 39.1 
Total Other Temporary Investments and Restricted Cash$241.2 $25.1 $(3.0)$263.3 
December 31, 2024
GrossGross
UnrealizedUnrealizedFair
Other Temporary Investments and Restricted CashCostGainsLossesValue
(in millions)
Restricted Cash (a)$43.1 $— $— $43.1 
Other Cash Deposits13.9 — — 13.9 
Fixed Income Securities – Mutual Funds (b)167.2 — (5.3)161.9 
Equity Securities – Mutual Funds12.7 26.9 — 39.6 
Total Other Temporary Investments and Restricted Cash$236.9 $26.9 $(5.3)$258.5 

(a)Primarily represents amounts held for the repayment of debt.
(b)Primarily short and intermediate maturities which may be sold and do not contain maturity dates.
The following is a summary of nuclear trust fund investments:
 June 30, 2025December 31, 2024
GrossGrossOther-Than-GrossGrossOther-Than-
FairUnrealizedUnrealizedTemporaryFairUnrealizedUnrealizedTemporary
ValueGainsLossesImpairmentsValueGainsLossesImpairments
(in millions)
Cash and Cash Equivalents$28.1 $— $— $— $23.3 $— $— $— 
Fixed Income Securities:
United States Government1,298.6 3.3 (9.0)(16.9)1,322.8 8.2 (5.3)(20.2)
Corporate Debt274.8 20.5 (1.0)(7.1)211.3 0.7 (9.8)(5.8)
State and Local Government— — — — — — — — 
Subtotal Fixed Income Securities1,573.4 23.8 (10.0)(24.0)1,534.1 8.9 (15.1)(26.0)
Equity Securities - Domestic3,008.2 2,444.9 (0.5)— 2,837.7 2,288.9 (0.4)— 
Spent Nuclear Fuel and Decommissioning Trusts$4,609.7 $2,468.7 $(10.5)$(24.0)$4,395.1 $2,297.8 $(15.5)$(26.0)
Schedule of Fixed Income And Equity Securities Activity
The following table provides the activity for fixed income and equity securities within Other Temporary Investments:
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
(in millions)
Proceeds from Investment Sales$6.6 $— $16.6 $3.0 
Purchases of Investments5.0 1.5 6.5 3.0 
Gross Realized Gains on Investment Sales0.2 — 4.2 0.3 
Gross Realized Losses on Investment Sales0.3 — 0.5 0.2 
Schedule of Securities Activity
The following table provides the securities activity within the decommissioning and SNF trusts:
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
 (in millions)
Proceeds from Investment Sales$717.9 $584.6 $1,294.4 $1,154.1 
Purchases of Investments728.8 598.6 1,330.0 1,187.1 
Gross Realized Gains on Investment Sales2.4 4.9 4.3 10.3 
Gross Realized Losses on Investment Sales1.8 4.2 2.5 5.4 
Schedule of Contractual Maturities, Fair Value of Debt Securities
The fair value of fixed income securities held in the nuclear trust funds, summarized by contractual maturities, as of June 30, 2025 was as follows:
Fair Value of Fixed
Income Securities
(in millions)
Within 1 year$350.0 
After 1 year through 5 years635.8 
After 5 years through 10 years231.2 
After 10 years356.4 
Total$1,573.4 
Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables set forth, by level within the fair value hierarchy, the Registrants’ financial assets and liabilities that were accounted for at fair value on a recurring basis.  As required by the accounting guidance for “Fair Value Measurements and Disclosures,” financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  Management’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.  There have not been any significant changes in management’s valuation techniques.

AEP

Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Other Temporary Investments and Restricted Cash
Restricted Cash$48.2 $— $— $3.1 $51.3 
Other Cash Deposits (a)— — — 16.1 16.1 
Fixed Income Securities – Mutual Funds156.8 — — — 156.8 
Equity Securities – Mutual Funds (b)39.1 — — — 39.1 
Total Other Temporary Investments and Restricted Cash244.1 — — 19.2 263.3 
Risk Management Assets
Risk Management Commodity Contracts (c) (d)2.3 758.9 499.6 (655.5)605.3 
Cash Flow Hedges:
Commodity Hedges (c)— 128.0 17.5 (22.6)122.9 
Total Risk Management Assets2.3 886.9 517.1 (678.1)728.2 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)15.4 — — 12.7 28.1 
Fixed Income Securities:
United States Government— 1,298.6 — — 1,298.6 
Corporate Debt— 274.8 — — 274.8 
Subtotal Fixed Income Securities— 1,573.4 — — 1,573.4 
Equity Securities – Domestic (b)3,008.2 — — — 3,008.2 
Total Spent Nuclear Fuel and Decommissioning Trusts3,023.6 1,573.4 — 12.7 4,609.7 
Total Assets$3,270.0 $2,460.3 $517.1 $(646.2)$5,601.2 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (d)$4.7 $682.0 $132.1 $(576.0)$242.8 
Cash Flow Hedges:
Commodity Hedges (c)— 27.3 2.2 (22.5)7.0 
Fair Value Hedges— 47.9 — — 47.9 
Total Risk Management Liabilities$4.7 $757.2 $134.3 $(598.5)$297.7 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2024
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Other Temporary Investments and Restricted Cash
Restricted Cash$43.1 $— $— $— $43.1 
Other Cash Deposits (a)— — — 13.9 13.9 
Fixed Income Securities – Mutual Funds161.9 — — — 161.9 
Equity Securities – Mutual Funds (b)39.6 — — — 39.6 
Total Other Temporary Investments and Restricted Cash244.6 — — 13.9 258.5 
Risk Management Assets
Risk Management Commodity Contracts (c) (f)2.9 597.3 291.6 (517.2)374.6 
Cash Flow Hedges:
Commodity Hedges (c)— 115.6 21.9 (12.6)124.9 
Total Risk Management Assets2.9 712.9 313.5 (529.8)499.5 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)9.6 — — 13.7 23.3 
Fixed Income Securities:
United States Government— 1,322.8 — — 1,322.8 
Corporate Debt— 211.3 — — 211.3 
State and Local Government— — — — — 
Subtotal Fixed Income Securities— 1,534.1 — — 1,534.1 
Equity Securities – Domestic (b)2,837.7 — — — 2,837.7 
Total Spent Nuclear Fuel and Decommissioning Trusts2,847.3 1,534.1 — 13.7 4,395.1 
Total Assets$3,094.8 $2,247.0 $313.5 $(502.2)$5,153.1 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c) (f)$4.4 $534.1 $147.7 $(433.6)$252.6 
Cash Flow Hedges:
Commodity Hedges (c)— 12.6 0.2 (12.6)0.2 
Fair Value Hedges— 71.6 — — 71.6 
Total Risk Management Liabilities$4.4 $618.3 $147.9 $(446.2)$324.4 
AEP Texas
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$13.3 $— $— $— $13.3 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $0.2 $— $(0.2)$— 

December 31, 2024
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$23.5 $— $— $— $23.5 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $0.3 $— $(0.3)$— 
APCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$18.2 $— $— $— $18.2 
Risk Management Assets
Risk Management Commodity Contracts (c)— 4.8 108.6 (3.5)109.9 
Total Assets$18.2 $4.8 $108.6 $(3.5)$128.1 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $6.0 $0.3 $(4.0)$2.3 



December 31, 2024
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$16.2 $— $— $— $16.2 
Risk Management Assets
Risk Management Commodity Contracts (c)— 6.5 35.2 (4.6)37.1 
Total Assets$16.2 $6.5 $35.2 $(4.6)$53.3 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $6.9 $— $(4.7)$2.2 
I&M
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c)$— $17.1 $13.0 $(17.8)$12.3 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)15.4 — — 12.7 28.1 
Fixed Income Securities:
United States Government— 1,298.6 — — 1,298.6 
Corporate Debt— 274.8 — — 274.8 
State and Local Government— — — — — 
Subtotal Fixed Income Securities— 1,573.4 — — 1,573.4 
Equity Securities - Domestic (b)3,008.2 — — — 3,008.2 
Total Spent Nuclear Fuel and Decommissioning Trusts3,023.6 1,573.4 — 12.7 4,609.7 
Total Assets$3,023.6 $1,590.5 $13.0 $(5.1)$4,622.0 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $28.1 $0.7 $(27.6)$1.2 

December 31, 2024
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c)$— $19.9 $6.9 $(8.4)$18.4 
Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)9.6 — — 13.7 23.3 
Fixed Income Securities:
United States Government— 1,322.8 — — 1,322.8 
Corporate Debt— 211.3 — — 211.3 
Subtotal Fixed Income Securities— 1,534.1 — — 1,534.1 
Equity Securities - Domestic (b)2,837.7 — — — 2,837.7 
Total Spent Nuclear Fuel and Decommissioning Trusts2,847.3 1,534.1 — 13.7 4,395.1 
Total Assets$2,847.3 $1,554.0 $6.9 $5.3 $4,413.5 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $9.2 $0.5 $(9.0)$0.7 
OPCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Liabilities:(in millions)
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $— $47.7 $— $47.7 

December 31, 2024
Level 1Level 2Level 3OtherTotal
Liabilities:(in millions)
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $0.2 $47.5 $(0.2)$47.5 

PSO
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c)$— $3.0 $97.0 $(3.1)$96.9 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $11.2 $0.1 $(3.2)$8.1 

December 31, 2024
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Risk Management Assets
Risk Management Commodity Contracts (c)$— $3.1 $20.8 $(1.9)$22.0 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $7.0 $0.8 $(2.0)$5.8 
SWEPCo
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2025
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$16.7 $— $— $— $16.7 
Risk Management Assets
Risk Management Commodity Contracts (c)— 1.0 70.7 (1.3)70.4 
Total Assets$16.7 $1.0 $70.7 $(1.3)$87.1 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $3.5 $1.6 $(1.3)$3.8 

December 31, 2024
Level 1Level 2Level 3OtherTotal
Assets:(in millions)
Restricted Cash for Securitized Funding$3.4 $— $— $— $3.4 
Risk Management Assets
Risk Management Commodity Contracts (c)— 1.0 18.1 (1.0)18.1 
Total Assets$3.4 $1.0 $18.1 $(1.0)$21.5 
Liabilities:
Risk Management Liabilities
Risk Management Commodity Contracts (c)$— $2.8 $0.6 $(1.1)$2.3 

(a)Amounts in “Other’’ column primarily represent cash deposits in bank accounts with financial institutions or third-parties.  Level 1 and Level 2 amounts primarily represent investments in money market funds.
(b)Amounts represent publicly traded equity securities and equity-based mutual funds.
(c)Amounts in “Other’’ column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.’’
(d)The June 30, 2025 maturities of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), were as follows: Level 1 matures $(1) million in 2025 and $(1) million in periods 2026-2028; Level 2 matures $5 million in 2025, $68 million in periods 2026-2028 and $4 million in periods 2029-2030; Level 3 matures $175 million in 2025, $203 million in periods 2026-2028, $12 million in periods 2029-2030 and $(23) million in periods 2031-2034.  Risk management commodity contracts are substantially comprised of power contracts.
(e)Amounts in “Other’’ column primarily represent accrued interest receivables from financial institutions.  Level 1 amounts primarily represent investments in money market funds.
(f)The December 31, 2024 maturities of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), were as follows: Level 1 matures $(1) million in 2025; Level 2 matures $16 million in 2025, $43 million in periods 2026-2028, $4 million in periods 2029-2030; Level 3 matures $106 million in 2025, $45 million in periods 2026-2028, $9 million in periods 2029-2030 and $(16) million in periods 2031-2034.  Risk management commodity contracts are substantially comprised of power contracts.
Changes in Fair Value of Net Trading Derivatives and Other Investments
The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:
Three Months Ended June 30, 2025AEPAPCoI&MOPCoPSOSWEPCo
 (in millions)
Balance as of March 31, 2025$122.8 $8.0 $3.9 $(51.2)$15.4 $13.1 
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
52.7 10.1 2.9 (0.2)17.6 18.6 
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
(3.4)— — — — — 
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)
(0.8)— — — — — 
Settlements(101.2)(18.1)(6.9)2.1 (32.9)(31.7)
Transfers into Level 3 (d) (e)5.4 — — — — — 
Transfers out of Level 3 (e)(2.2)— — — — — 
Changes in Fair Value Allocated to Regulated Jurisdictions (f)
309.5 108.3 12.4 1.6 96.8 69.1 
Balance as of June 30, 2025$382.8 $108.3 $12.3 $(47.7)$96.9 $69.1 

Three Months Ended June 30, 2024AEPAPCoI&MOPCoPSOSWEPCo
 (in millions)
Balance as of March 31, 2024$119.1 $4.0 $1.0 $(41.0)$7.7 $5.3 
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
42.5 15.7 4.1 — 7.5 8.4 
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
4.5 — — — — — 
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)
0.9 — — — — — 
Settlements(64.3)(19.7)(5.2)2.3 (15.2)(13.6)
Transfers into Level 3 (d) (e)2.5 — — — — — 
Transfers out of Level 3 (e)(0.2)— — — — — 
Changes in Fair Value Allocated to Regulated Jurisdictions (f)
183.2 67.8 14.6 (4.5)49.4 38.0 
Balance as of June 30, 2024$288.2 $67.8 $14.5 $(43.2)$49.4 $38.1 
Six Months Ended June 30, 2025AEPAPCoI&MOPCoPSOSWEPCo
 (in millions)
Balance as of December 31, 2024$165.6 $35.2 $6.4 $(47.5)$20.0 $17.5 
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
154.3 49.4 12.9 — 37.9 42.2 
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
16.8 — — — — — 
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)5.9 — — — — — 
Settlements(263.2)(84.6)(19.2)4.3 (57.9)(59.7)
Transfers into Level 3 (d) (e)(0.3)— — — — — 
Transfers out of Level 3 (e)0.2 — — — — — 
Changes in Fair Value Allocated to Regulated Jurisdictions (f)
303.5 108.3 12.2 (4.5)96.9 69.1 
Balance as of June 30, 2025$382.8 $108.3 $12.3 $(47.7)$96.9 $69.1 

Six Months Ended June 30, 2024AEPAPCoI&MOPCoPSOSWEPCo
 (in millions)
Balance as of December 31, 2023$139.4 $22.4 $2.8 $(50.6)$18.6 $11.1 
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)
90.8 24.1 7.3 (0.8)26.2 23.6 
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)
13.9 — — — — — 
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income (c)
1.7 — — — — — 
Settlements(158.3)(46.5)(10.0)4.9 (44.8)(36.0)
Transfers into Level 3 (d) (e)7.1 — — — — — 
Transfers out of Level 3 (e)1.9 — — — — 0.5 
Changes in Fair Value Allocated to Regulated Jurisdictions (f)
191.7 67.8 14.4 3.3 49.4 38.9 
Balance as of June 30, 2024$288.2 $67.8 $14.5 $(43.2)$49.4 $38.1 

(a)Included in revenues on the statements of income.
(b)Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.
(c)Included in cash flow hedges on the statements of comprehensive income.
(d)Represents existing assets or liabilities that were previously categorized as Level 2.
(e)Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.
(f)Relates to the net gains (losses) of those contracts that are not reflected on the statements of income.  These changes in fair value are recorded as regulatory liabilities for net gains and as regulatory assets for net losses or accounts payable.
Significant Unobservable Inputs for Level 3
The following tables quantify the significant unobservable inputs used in developing the fair value of Level 3 positions:

Significant Unobservable Inputs
June 30, 2025
SignificantInput/Range
Type ofFair ValueValuationUnobservableWeighted
CompanyInputAssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
AEPEnergy Contracts$204.2 $129.7 Discounted Cash FlowForward Market Price$4.80 $129.40 $47.56 
AEPFTRs312.9 4.6 Discounted Cash FlowForward Market Price(32.49)28.81 (0.20)
APCoFTRs108.6 0.3 Discounted Cash FlowForward Market Price(1.40)14.50 2.10 
I&MFTRs13.0 0.7 Discounted Cash FlowForward Market Price(0.90)14.50 1.05 
OPCoEnergy Contracts— 47.7 Discounted Cash FlowForward Market Price12.54 75.71 41.08 
PSOFTRs97.0 0.1 Discounted Cash FlowForward Market Price(32.49)5.35 (5.18)
SWEPCoFTRs70.7 1.6 Discounted Cash FlowForward Market Price(32.49)5.35 (5.18)

December 31, 2024
SignificantInput/Range
Type ofFair ValueValuationUnobservableWeighted
CompanyInputAssetsLiabilitiesTechniqueInput (a)LowHighAverage (b)
(in millions)
AEPEnergy Contracts$221.2 $144.6 Discounted Cash FlowForward Market Price$2.75 $149.30 $49.34 
AEPFTRs92.3 3.3 Discounted Cash FlowForward Market Price(29.48)19.70 0.24 
APCoFTRs35.2 — Discounted Cash FlowForward Market Price(0.25)9.32 1.56 
I&MFTRs6.9 0.5 Discounted Cash FlowForward Market Price(4.07)9.32 1.34 
OPCoEnergy Contracts— 47.5 Discounted Cash FlowForward Market Price14.53 72.40 42.44 
PSOFTRs20.8 0.8 Discounted Cash FlowForward Market Price(29.48)10.54 (3.88)
SWEPCoFTRs18.1 0.6 Discounted Cash FlowForward Market Price(29.48)10.54 (3.88)
(a)Represents market prices in dollars per MWh.
(b)The weighted average is the product of the forward market price of the underlying commodity and volume weighted by term.
Schedule of Sensitivity of Fair Value Measurements
The following table provides the measurement uncertainty of fair value measurements to increases (decreases) in significant unobservable inputs related to Energy Contracts and FTRs for the Registrants as of June 30, 2025 and December 31, 2024:
Significant Unobservable InputPositionChange in InputImpact on Fair Value Measurement
Forward Market PriceBuyIncrease (Decrease)Higher (Lower)
Forward Market PriceSellIncrease (Decrease)Lower (Higher)