Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 25, 2017 | |
Entity Registrant Name | AEP Transmission Company, LLC | |
Entity Central Index Key | 1,702,494 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Electrical Transmission Revenue | $ 19,194 | $ 21,974 |
Sales to AEP Affiliates | 133,390 | 57,660 |
Other Revenue, Net | 75 | 1 |
TOTAL REVENUES | 152,659 | 79,635 |
Expenses | ||
Other Operation | 9,126 | 7,208 |
Maintenance | 3,055 | 1,459 |
Depreciation and Amortization | 23,319 | 15,134 |
Taxes Other Than Income Taxes | 26,793 | 20,999 |
TOTAL EXPENSES | 62,293 | 44,800 |
OPERATING INCOME (LOSS) | 90,366 | 34,835 |
Other Income (Expense): | ||
Interest Income | 218 | 65 |
Allowance for Equity Funds Used During Construction | 10,852 | 12,271 |
Interest Expense | (15,950) | (10,812) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 85,486 | 36,359 |
Income Tax Expense (Credit) | 28,530 | 10,516 |
Net Income (Loss) | $ 56,956 | $ 25,843 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Members' Equity | $ 1,552,884 | $ 1,243,000 | $ 309,884 |
Proceeds from Contributions from Parent | 26,750 | 26,750 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Income (Loss) | 25,843 | 25,843 | |
Members' Equity | 1,605,477 | 1,269,750 | 335,727 |
Members' Equity | 1,957,582 | 1,455,009 | 502,573 |
Proceeds from Contributions from Parent | 125,500 | 125,500 | |
Net Income (Loss) | 56,956 | 56,956 | |
Members' Equity | $ 2,140,038 | $ 1,580,509 | $ 559,529 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Advances to Affiliates | $ 10,256 | $ 67,108 |
Accounts Receivable: | ||
Customers | 25,560 | 11,306 |
Affiliated Companies | 91,178 | 66,632 |
Miscellaneous | 190 | 0 |
Total Accounts Receivable | 116,928 | 77,938 |
Materials and Supplies | 8,797 | 5,001 |
Accrued Tax Benefits | 70,928 | 26,002 |
Prepayments and Other Current Assets | 2,509 | 2,717 |
TOTAL CURRENT ASSETS | 209,418 | 178,766 |
Property, Plant and Equipment | ||
Transmission | 4,060,434 | 3,973,516 |
Other Property, Plant and Equipment | 101,892 | 99,337 |
Construction Work in Progress | 1,184,430 | 981,332 |
Total Property, Plant and Equipment | 5,346,756 | 5,054,185 |
Accumulated Depreciation and Amortization | 117,821 | 99,566 |
TOTAL PROPERTY, PLANT AND EQUIPMENT - NET | 5,228,935 | 4,954,619 |
Other Noncurrent Assets | ||
Regulatory Assets | 115,885 | 112,311 |
Deferred Property Taxes | 85,401 | 102,157 |
Deferred Charges and Other Noncurrent Assets | 1,550 | 1,942 |
TOTAL OTHER NONCURRENT ASSETS | 202,836 | 216,410 |
TOTAL ASSETS | 5,641,189 | 5,349,795 |
Current Liabilities | ||
Advances from Affiliates | 154,958 | 4,077 |
Accounts Payable | 185,633 | 289,740 |
Affiliated Companies | 34,579 | 43,098 |
Accrued Taxes | 157,611 | 191,777 |
Accrued Interest | 28,174 | 10,541 |
Other Current Liabilities | 6,180 | 10,890 |
TOTAL CURRENT LIABILITIES | 567,135 | 550,123 |
Noncurrent Liabilities | ||
Long-term Debt | 1,931,364 | 1,931,984 |
Deferred Income Taxes | 941,517 | 862,051 |
Regulatory Liabilities | 48,981 | 44,049 |
Deferred Credits and Other Noncurrent Liabilities | 12,154 | 4,006 |
TOTAL NONCURRENT LIABILITIES | 2,934,016 | 2,842,090 |
TOTAL LIABILITIES | 3,501,151 | 3,392,213 |
Rate Matters | ||
Commitments and Contingencies | ||
Equity | ||
Members' Capital | 1,580,509 | 1,455,009 |
Retained Earnings | 559,529 | 502,573 |
Members' Equity | 2,140,038 | 1,957,582 |
TOTAL LIABILITIES AND EQUITY | $ 5,641,189 | $ 5,349,795 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net Income (Loss) | $ 56,956 | $ 25,843 |
Adjustments to Reconcile Net Income to Net Cash Flows from (Used for) Operating Activities: | ||
Depreciation and Amortization | 23,319 | 15,134 |
Deferred Income Taxes | 74,060 | 52,946 |
Allowance for Equity Funds Used During Construction | (10,852) | (12,271) |
Property Taxes | 16,756 | 16,431 |
Change in Other Noncurrent Assets | 2,190 | 2,120 |
Change in Other Noncurrent Liabilities | 8,273 | 201 |
Changes in Certain Components of Working Capital: | ||
Accounts Receivable, Net | (38,990) | 10,865 |
Materials and Supplies | (3,796) | 0 |
Accounts Payable | (8,170) | (4,968) |
Accrued Taxes, Net | (79,092) | 48,300 |
Accrued Interest | 17,633 | 11,595 |
Other Current Assets | 209 | 428 |
Other Current Liabilities | (17) | 75 |
Net Cash Flows from (Used for) Operating Activities | 58,479 | 166,699 |
Investing Activities | ||
Construction Expenditures | (390,414) | (280,913) |
Change in Advances to Affiliates, Net | 56,852 | 59,603 |
Payments to Acquire Property, Plant, and Equipment | (598) | (1,990) |
Other Investing Activities | 45 | 1,835 |
Net Cash Flows from (Used for) Investing Activities | (334,115) | (221,465) |
Financing Activities | ||
Proceeds from Contributions from Parent | 125,500 | 26,750 |
Change in Advances from Affiliates, Net | 150,881 | 28,016 |
Proceeds from (Payments for) Other Financing Activities | (745) | 0 |
Net Cash Flows from (Used for) Financing Activities | 275,636 | 54,766 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 |
Cash and Cash Equivalents at Beginning of Period | 0 | 0 |
Cash and Cash Equivalents at End of Period | 0 | 0 |
Supplementary Information | ||
Net Cash Paid (Received) for Income Taxes | (610) | (118,579) |
Construction Expenditures Included in Current Liabilities as of September 30, | $ 189,237 | $ 141,731 |
Significant Accounting Matters
Significant Accounting Matters | 3 Months Ended |
Mar. 31, 2017 | |
Significant Accounting Matters | SIGNIFICANT ACCOUNTING MATTERS General The unaudited condensed financial statements and footnotes were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the unaudited condensed interim financial statements reflect all normal and recurring accruals and adjustments necessary for a fair presentation of the net income, financial position and cash flows for the interim periods. Net income for the three months ended March 31, 2017 is not necessarily indicative of results that may be expected for the year ending December 31, 2017 . The condensed financial statements are unaudited and should be read in conjunction with the audited 2016 financial statements and notes thereto, filed in AEPTCo’s Registration Statement. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Upon issuance of final pronouncements, management reviews the new accounting literature to determine its relevance, if any, to AEPTCo’s business. The following final 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 clarifying the method used to determine the timing and requirements for revenue recognition on the statements of income. Under the new standard, an entity must identify the performance obligations in a contract, 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 flow arising from contracts. The FASB deferred implementation of ASU 2014-09 under the terms in ASU 2015-14, “Revenue from Contracts with Customers (Topic: 606): Deferral of the Effective Date.” The new accounting guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. Management continues to analyze the impact of the new revenue standard and related ASUs. During 2016 and continuing through the first quarter of 2017, revenue contract assessments were completed. Material revenue streams were identified within the AEP System and representative contract/transaction types were sampled. Performance obligations identified within each material revenue stream were evaluated to determine whether the obligations were satisfied at a point in time or over time. Contracts determined to be satisfied over time generally qualified for the invoicing practical expedient since the invoiced amounts reasonably represented the value to customers of performance obligations fulfilled to date. Based upon the completed assessments, management does not expect a material impact to the timing of revenue recognized or net income and plans to elect the modified retrospective transition approach upon adoption. Management also continues to monitor unresolved industry implementation issues, including items related to collectability, and will analyze the related impacts to revenue recognition. Management plans to adopt ASU 2014-09 effective January 1, 2018. ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01) In January 2016, the FASB issued ASU 2016-01 enhancing the reporting model for financial instruments. Under the new standard, equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net income. The new standard also amends disclosure requirements and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The amendments also clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. The amendments will be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on net income. Management plans to adopt ASU 2016-01 effective January 1, 2018. 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 sheet 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 lease 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. The new accounting guidance is effective for annual periods beginning after December 15, 2018 with early adoption permitted. The guidance will be applied by means of a modified retrospective approach. The modified retrospective approach will require lessees and lessors to recognize and measure leases at the beginning of the earliest period presented. Management continues to analyze the impact of the new lease standard. During 2016 and continuing through the first quarter of 2017, lease contract assessments were completed. The AEP System lease population was identified and representative lease contracts were sampled. Based upon the completed assessments, management prepared a system gap analysis to outline new disclosure compliance requirements compared to current system capabilities. Lease system options are currently being evaluated. Management plans to elect certain of 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. Lease term Elect to use hindsight to determine the lease term. Management expects the new standard to impact financial position, but not results of operations or cash flows. Management also continues to monitor unresolved industry implementation issues, including items related to pole attachments, easements and right-of-ways, and will analyze the related impacts to lease accounting. Management plans to adopt ASU 2016-02 effective January 1, 2019. |
Rate Matters
Rate Matters | 3 Months Ended |
Mar. 31, 2017 | |
Rate Matters | RATE MATTERS As discussed in AEPTCo’s 2016 Annual Report included within AEPTCo’s Registration Statement, the State Transcos are involved in rate and regulatory proceedings at the FERC and their state commissions. The Rate Matters and Effects of Regulation notes within AEPTCo’s Registration Statement should be read in conjunction with this report to gain a complete understanding of material rate matters still pending that could impact net income, cash flows and possibly financial condition. The following discusses ratemaking developments in 2017 and updates AEPTCo’s 2016 Annual Report included within AEPTCo’s Registration Statement. Louisiana Rate Matters In 2011, SWTCo filed with the LPSC to seek commission approval, to the extent necessary, of SWTCo’s status as a transmission-only public utility in the state of Louisiana. In 2014, SWTCo filed additional supplemental testimony with the LPSC. A decision from the LPSC is pending. Management is unable to predict the outcome of this filing. FERC Rate Matters FERC Transmission Complaint In October 2016, several parties filed a joint complaint with the FERC that states the base return on common equity used by various AEP affiliates, including the State Transcos that operate in PJM, in calculating formula transmission rates under the PJM OATT is excessive and should be reduced from 10.99% to 8.32% , effective upon the date of the complaint. Management believes its financial statements adequately address the impact of the complaint. If the FERC orders revenue reductions as a result of the complaint, including refunds from the date of the complaint filing, it could reduce future net income and cash flows and impact financial condition. Modifications to AEP East Transmission Companies Rates In November 2016, certain AEP affiliates, including the AEP East Transmission Companies, filed an application with the FERC to modify the PJM OATT formula transmission rate calculation, including an adjustment to recover a tax-related regulatory asset and a shift from historical to estimated expenses. In March 2017, the FERC accepted the modifications effective January 1, 2017, subject to refund, and set this matter for hearing and settlement procedures. Effective January 1, 2017, the AEP East Transmission Companies implemented the modified PJM OATT formula rate calculation which established the 2017 calendar year formula rates based on projected 2017 calendar year financial activity and projected plant balances. See “2016 and 2017 Transmission Rate Filings for AEP East Transmission Companies” discussed below. If the FERC determines that any of these costs are not recoverable, it could reduce future net income and cash flows and impact financial condition. 2016 and 2017 Transmission Rate Filings for AEP East Transmission Companies The AEP East Transmission Companies implemented a modified PJM OATT formula rate calculation which established the 2017 calendar year formula rates based on projected 2017 calendar year financial activity and projected plant balances. As accepted by the FERC, the AEP East Transmission Companies established 2017 calendar year rates based on a projected annual transmission revenue requirement of $583 million and recovery of the remaining $33 million of 2015 under-recovered revenues included in its 2016 transmission rate filing. The new rates were effective January 2017, subject to refund and true up. In May 2017, AEPSC, on behalf of the AEP East Transmission Companies, filed its calendar year 2016 annual transmission revenue true up, consisting of a $65 million under-recovery of revenues excluding carrying charges, with the FERC and PJM. The 2016 over-recovery of revenues, including carrying charges, will be incorporated in the 2018 projected transmission revenue requirement. If the FERC determines that any of these costs are not recoverable, it could reduce future net income and cash flows and impact financial condition. 2017 Transmission Rate Filings for AEP West Transmission Companies In May 2017, AEPSC, on behalf of the AEP West Transmission Companies, filed annual transmission revenue requirements with the FERC and SPP for the period July 2017 through June 2018. This filing established the following projected revenue requirements and prior year (over)/under recovery of revenues, including carrying charges: Projected Prior Year Revenue (Over)/Under-Recovery Company Requirements of Revenues (in thousands) OKTCo $ 96,376 $ 9,332 SWTCo 125 (4 ) Total – SPP Activity $ 96,501 $ 9,328 SPP will implement these rates in July 2017, subject to refund and true-up. 2016 Transmission Rate Filings for AEP West Transmission Companies In May 2016, AEPSC, on behalf of the AEP West Transmission Companies, filed annual transmission revenue requirements with the FERC and SPP for the period July 2016 through June 2017. This filing established the following projected revenue requirements and prior year (over)/under recovery of revenues, including carrying charges: Projected Prior Year Revenue (Over)/Under-Recovery Company Requirements of Revenues (in thousands) OKTCo $ 63,676 $ 5,969 SWTCo 131 (53 ) Total – SPP Activity $ 63,807 $ 5,916 SPP implemented these rates in July 2016, subject to refund and true-up. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments, Guarantees and Contingencies | COMMITMENTS, GUARANTEES AND CONTINGENCIES AEPTCo is subject to certain claims and legal actions arising in its ordinary course of business. In addition, the business activities of AEPTCo are subject to extensive governmental regulation related to public health and the environment. The ultimate outcome of such pending or potential litigation cannot be predicted. Management accrues contingent liabilities only when management concludes that it is both probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. When management determines that it is not probable, but rather reasonably possible that a liability has been incurred at the date of the financial statements, management discloses such contingencies and the possible loss or range of loss if such estimate can be made. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the maximum possible loss exposure. Circumstances change over time and actual results may vary significantly from estimates. Management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the financial statements. The Commitments, Guarantees and Contingencies note included within AEPTCo’s Registration Statement should be read in conjunction with this report. 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. Indemnifications and Other Guarantees AEPTCo enters into certain types of contracts which require indemnifications. Typically these contracts include, but are not limited to, 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. As of March 31, 2017 , there were no material liabilities recorded for any indemnifications. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Business Segments | BUSINESS SEGMENTS AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities (State Transcos). The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting”. The State Transcos business consists of developing, constructing and operating transmission facilities at the request of the regional transmission organizations in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and providing service to AEP’s wholesale and retail customers. The State Transcos are regulated for rate-making purposes exclusively by FERC and earn revenues through tariff rates charged for the use of their electric transmission systems. AEPTCo’s Chief Operating Decision Maker (CODM) makes operating decisions, allocates resources to and assesses performance based on these operating segments. The seven State Transco operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one operating segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities. The tables below present AEPTCo’s reportable segment income statement information for the three months ended March 31, 2017 and 2016 and reportable segment balance sheet information as of March 31, 2017 and December 31, 2016 . These amounts include certain estimates and allocations where necessary. State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo Consolidated (in thousands) Three Months Ended March 31, 2017 Revenues from: External Customers $ 19,194 $ — $ — $ 19,194 Sales to AEP Affiliates 133,390 — — 133,390 Other 75 — — 75 Total Revenues $ 152,659 $ — $ — $ 152,659 Interest Income - Affiliated $ 146 $ 19,070 $ (18,998 ) (a) $ 218 Interest Expense 15,795 19,153 (18,998 ) (a) 15,950 Income Tax Expense 28,452 78 — 28,530 Equity Earnings in State Transcos — 56,812 (56,812 ) (b) — Net Income (Loss) $ 56,812 $ 56,956 $ (56,812 ) (b) $ 56,956 State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo Consolidated (in thousands) Three Months Ended March 31, 2016 Revenues from: External Customers $ 21,974 $ — $ — $ 21,974 Sales to AEP Affiliates 57,660 — — 57,660 Other 1 — — 1 Total Revenues $ 79,635 $ — $ — $ 79,635 Interest Income - Affiliated $ 28 $ 13,886 $ (13,849 ) (a) $ 65 Interest Expense 10,810 13,851 (13,849 ) (a) 10,812 Income Tax Expense 10,516 — — 10,516 Equity Earnings in State Transcos — 25,844 (25,844 ) (b) — Net Income (Loss) $ 25,844 $ 25,843 $ (25,844 ) (b) $ 25,843 State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo (in thousands) As of March 31, 2017 Total Transmission Property $ 5,346,756 $ — $ — $ 5,346,756 Accumulated Depreciation and Amortization 117,821 — — 117,821 Total Transmission Property – Net $ 5,228,935 $ — $ — $ 5,228,935 Notes Receivable - Affiliated $ — $ 1,950,000 $ (1,950,000 ) (c) $ — Total Assets $ 5,631,235 $ 4,132,527 $ (4,122,573 ) (d) $ 5,641,189 Total Long-term Debt $ 1,931,445 $ 1,949,919 $ (1,950,000 ) (c) $ 1,931,364 State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo (in thousands) As of December 31, 2016 Total Transmission Property $ 5,054,185 $ — $ — $ 5,054,185 Accumulated Depreciation and Amortization 99,566 — — 99,566 Total Transmission Property – Net $ 4,954,619 $ — $ — $ 4,954,619 Notes Receivable - Affiliated $ — $ 1,950,000 $ (1,950,000 ) (c) $ — Total Assets $ 5,337,501 $ 3,947,814 $ (3,935,520 ) (d) $ 5,349,795 Total Long-term Debt $ 1,931,984 $ 1,950,000 $ (1,950,000 ) (c) $ 1,931,984 (a) Elimination of intercompany interest income/interest expense on affiliated debt arrangement. (b) Elimination of AEPTCo Parent’s equity earnings in the State Transcos. (c) Elimination of intercompany debt. (d) Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value Measurements of Long-term Debt The fair values of Long-term Debt are based on quoted market prices, without credit enhancements, for the same or similar issues and the current interest rates offered for instruments with similar maturities classified as Level 2 measurement inputs. These instruments are not marked-to-market. The estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The book values and fair values of Long-term Debt as of March 31, 2017 and December 31, 2016 are summarized in the following table: March 31, 2017 December 31, 2016 Book Value Fair Value Book Value Fair Value (in thousands) Long-term Debt $ 1,931,364 $ 2,072,100 $ 1,931,984 $ 1,984,318 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes | INCOME TAXES AEP System Tax Allocation Agreement AEPTCo and its subsidiaries join 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, the method of allocation reflects a separate return result for each company in the consolidated group. Federal and State Income Tax Audit Status AEPTCo and other AEP subsidiaries are no longer subject to U.S. federal examination for years before 2011. The IRS examination of years 2011, 2012 and 2013 started in April 2014. AEP and 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. Although the outcome of tax audits is uncertain, in management’s opinion, adequate provisions for federal income taxes have been made for potential liabilities resulting from such matters. In addition, AEPTCo accrues interest on these uncertain tax positions. Management is not aware of any issues for open tax years that upon final resolution are expected to materially impact net income. AEPTCo and other AEP subsidiaries file income tax returns in various state and local jurisdictions. These taxing authorities routinely examine the tax returns. AEPTCo 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. |
Financing Activities
Financing Activities | 3 Months Ended |
Mar. 31, 2017 | |
Financing Activities | FINANCING ACTIVITIES Long-term Debt There was no long-term debt issued or retired during the first three months of 2017 . Corporate Borrowing Program The AEP System uses a corporate borrowing program to meet the short-term borrowing needs of AEP’s subsidiaries. The corporate borrowing program includes a Utility Money Pool, which funds AEP’s utility subsidiaries. The AEP System Utility Money Pool operates in accordance with the terms and conditions of the AEP System Utility Money Pool agreement filed with the FERC. AEP has a direct financing relationship with AEPTCo Parent and SWTCo to meet their short-term borrowing needs. APTCo, IMTCo, KTCo, OHTCo, OKTCo and WVTCo have been approved to participate in the Utility Money Pool to finance their short-term borrowing needs. SWTCo is awaiting regulatory approval from the LPSC to begin participating in AEP’s Utility Money Pool. The amounts of outstanding loans to (borrowings from) the Utility Money Pool as of March 31, 2017 and December 31, 2016 are included in Advances to Affiliates and Advances from Affiliates, respectively, on the balance sheet. AEPTCo’s money pool activity for the three months ended March 31, 2017 is described in the following table: Maximum Maximum Average Average Borrowings Loans Borrowings Loans Borrowings Authorized from the to the from the to the from the Utility Short-term Utility Utility Utility Utility Money Pool as of Borrowing Money Pool Money Pool Money Pool Money Pool March 31, 2017 Limit (in thousands) $ 228,090 $ 52,871 $ 112,173 $ 12,319 $ 153,879 $ 795,000 (a) (a) Amount represents the combined authorized short-term borrowing limit the State Transcos have through their agreements with the FERC or state regulatory commissions. AEPTCo’s maximum, minimum and average interest rates for funds either borrowed from or loaned to the Utility Money Pool are summarized in the following table: Maximum Minimum Maximum Minimum Average Average Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate for Funds for Funds for Funds for Funds for Funds for Funds Borrowed Borrowed Loaned Loaned Borrowed Loaned Three Months from the from the to the to the from the to the Ended Utility Utility Utility Utility Utility Utility March 31, Money Pool Money Pool Money Pool Money Pool Money Pool Money Pool 2017 1.27 % 0.92 % 1.03 % 0.92 % 1.08 % 0.99 % 2016 0.83 % 0.69 % 0.82 % 0.69 % 0.74 % 0.73 % The amounts of outstanding loans to (borrowings from) AEP as of March 31, 2017 and December 31, 2016 are included in Advances to Affiliates and Advances from Affiliates, respectively, on the balance sheet. AEPTCo Parent’s and SWTCo’s direct borrowing and lending activity with AEP for the three months ended March 31, 2017 is described in the following table: Borrowings Maximum Maximum Average Average from Loans to Borrowings Loans Borrowings Loans AEP as of AEP as of from AEP to AEP from AEP to AEP March 31, 2017 March 31, 2017 (in thousands) $ 1,089 $ 54,681 $ 1,081 $ 27,655 $ 1,079 $ 10,256 Maximum, minimum and average interest rates for funds either borrowed from or loaned to AEP are summarized in the following table for AEPTCo Parent and SWTCo: Maximum Minimum Maximum Minimum Average Average Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate for Funds for Funds for Funds for Funds for Funds for Funds Three Months Borrowed Borrowed Loaned Loaned Borrowed Loaned Ended from from to to from to March 31, AEP AEP AEP AEP AEP AEP 2017 1.27 % 0.92 % 1.27 % 0.92 % 1.03 % 1.04 % 2016 0.83 % 0.69 % 0.83 % 0.69 % 0.73 % 0.73 % Debt Covenants AEPTCo’s note purchase agreements contain certain covenants and requires it to maintain percentage of debt to total capitalization at a level that does not exceed 67.5% . The method for calculating outstanding debt and capitalization is contractually defined in the note purchase agreements. In addition, subject to certain conditions, AEPTCo has covenanted that it will not incur debt secured by a lien unless its other indebtedness is similarly secured. Covenants in AEPTCo’s note purchase agreements and indenture also limit the amount of contractually-defined priority debt (which includes a further sub-limit of $50 million of secured debt) to 10% of consolidated tangible net assets which was $486 million as of March 31, 2017 . The following table provides detail used in the calculation of AEPTCo’s priority debt covenants as of March 31, 2017 : Advances from Advances to Secured Priority Affiliates Affiliates Debt Debt (in thousands) $ 154,958 $ 10,256 $ — $ 154,958 Nonperformance under these covenants could result in an event of default under these note purchase agreements. Dividend Restrictions Federal Power Act In accordance with the Federal Power Act, the State Transcos are prohibited from paying dividends to AEPTCo Parent out of capital accounts, other than retained earnings, without regulatory approval. As a result, the State Transcos may be limited in their ability to transfer funds to AEPTCo Parent in the form of dividends. Leverage Restrictions Pursuant to the leverage restrictions in AEPTCo’s note purchase agreements, AEPTCo must maintain a percentage of debt to total capitalization at a level that does not exceed 67.5% . These leverage restrictions can limit the ability of AEPTCo to pay dividends out of retained earnings to AEP Parent. The payment of cash dividends indirectly results in an increase in the percentage of debt to total capitalization of the company distributing the dividend. The method for calculating outstanding debt and capitalization is contractually defined in the note purchase agreements. As of March 31, 2017, the leverage restriction did not limit the ability of AEPTCo to pay dividends out of retained earnings to AEP Parent. Capital Contributions In April 2017, AEP Transmission Holdco made a capital contribution of $10.2 million to AEPTCo Parent. Consequently, AEPTCo Parent made capital contributions of $7.5 million and $2.7 million to OHTCo and WVTCo, respectively. |
Significant Accounting Matters
Significant Accounting Matters (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Basis of Accounting | General The unaudited condensed financial statements and footnotes were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the unaudited condensed interim financial statements reflect all normal and recurring accruals and adjustments necessary for a fair presentation of the net income, financial position and cash flows for the interim periods. Net income for the three months ended March 31, 2017 is not necessarily indicative of results that may be expected for the year ending December 31, 2017 . The condensed financial statements are unaudited and should be read in conjunction with the audited 2016 financial statements and notes thereto, filed in AEPTCo’s Registration Statement. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Values of Long-term Debt | Fair Value Measurements of Long-term Debt The fair values of Long-term Debt are based on quoted market prices, without credit enhancements, for the same or similar issues and the current interest rates offered for instruments with similar maturities classified as Level 2 measurement inputs. These instruments are not marked-to-market. The estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. |
Income Taxes (Policies)
Income Taxes (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Policy | AEP System Tax Allocation Agreement AEPTCo and its subsidiaries join 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, the method of allocation reflects a separate return result for each company in the consolidated group. |
Rate Matters (Tables)
Rate Matters (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
AEP West Transmission Companies [Member] | |
Schedule of Transmission Rate Filings [Table Text Block] | Projected Prior Year Revenue (Over)/Under-Recovery Company Requirements of Revenues (in thousands) OKTCo $ 96,376 $ 9,332 SWTCo 125 (4 ) Total – SPP Activity $ 96,501 $ 9,328 Projected Prior Year Revenue (Over)/Under-Recovery Company Requirements of Revenues (in thousands) OKTCo $ 63,676 $ 5,969 SWTCo 131 (53 ) Total – SPP Activity $ 63,807 $ 5,916 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo Consolidated (in thousands) Three Months Ended March 31, 2017 Revenues from: External Customers $ 19,194 $ — $ — $ 19,194 Sales to AEP Affiliates 133,390 — — 133,390 Other 75 — — 75 Total Revenues $ 152,659 $ — $ — $ 152,659 Interest Income - Affiliated $ 146 $ 19,070 $ (18,998 ) (a) $ 218 Interest Expense 15,795 19,153 (18,998 ) (a) 15,950 Income Tax Expense 28,452 78 — 28,530 Equity Earnings in State Transcos — 56,812 (56,812 ) (b) — Net Income (Loss) $ 56,812 $ 56,956 $ (56,812 ) (b) $ 56,956 State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo Consolidated (in thousands) Three Months Ended March 31, 2016 Revenues from: External Customers $ 21,974 $ — $ — $ 21,974 Sales to AEP Affiliates 57,660 — — 57,660 Other 1 — — 1 Total Revenues $ 79,635 $ — $ — $ 79,635 Interest Income - Affiliated $ 28 $ 13,886 $ (13,849 ) (a) $ 65 Interest Expense 10,810 13,851 (13,849 ) (a) 10,812 Income Tax Expense 10,516 — — 10,516 Equity Earnings in State Transcos — 25,844 (25,844 ) (b) — Net Income (Loss) $ 25,844 $ 25,843 $ (25,844 ) (b) $ 25,843 State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo (in thousands) As of March 31, 2017 Total Transmission Property $ 5,346,756 $ — $ — $ 5,346,756 Accumulated Depreciation and Amortization 117,821 — — 117,821 Total Transmission Property – Net $ 5,228,935 $ — $ — $ 5,228,935 Notes Receivable - Affiliated $ — $ 1,950,000 $ (1,950,000 ) (c) $ — Total Assets $ 5,631,235 $ 4,132,527 $ (4,122,573 ) (d) $ 5,641,189 Total Long-term Debt $ 1,931,445 $ 1,949,919 $ (1,950,000 ) (c) $ 1,931,364 State Transcos AEPTCo Parent Reconciling Adjustments AEPTCo (in thousands) As of December 31, 2016 Total Transmission Property $ 5,054,185 $ — $ — $ 5,054,185 Accumulated Depreciation and Amortization 99,566 — — 99,566 Total Transmission Property – Net $ 4,954,619 $ — $ — $ 4,954,619 Notes Receivable - Affiliated $ — $ 1,950,000 $ (1,950,000 ) (c) $ — Total Assets $ 5,337,501 $ 3,947,814 $ (3,935,520 ) (d) $ 5,349,795 Total Long-term Debt $ 1,931,984 $ 1,950,000 $ (1,950,000 ) (c) $ 1,931,984 (a) Elimination of intercompany interest income/interest expense on affiliated debt arrangement. (b) Elimination of AEPTCo Parent’s equity earnings in the State Transcos. (c) Elimination of intercompany debt. (d) Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Book Values and Fair Values of Long-term Debt | March 31, 2017 December 31, 2016 Book Value Fair Value Book Value Fair Value (in thousands) Long-term Debt $ 1,931,364 $ 2,072,100 $ 1,931,984 $ 1,984,318 |
Financing Activities (Tables)
Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Utility Money Pool Participants' Money Pool Activity and Authorized Borrowing Limits | Maximum Maximum Average Average Borrowings Loans Borrowings Loans Borrowings Authorized from the to the from the to the from the Utility Short-term Utility Utility Utility Utility Money Pool as of Borrowing Money Pool Money Pool Money Pool Money Pool March 31, 2017 Limit (in thousands) $ 228,090 $ 52,871 $ 112,173 $ 12,319 $ 153,879 $ 795,000 (a) (a) Amount represents the combined authorized short-term borrowing limit the State Transcos have through their agreements with the FERC or state regulatory commissions. |
Maximum Minimum Average Interest Rates For Funds Borrowed From Loaned To Utility Money Pool [Table Text Block] | Maximum Minimum Maximum Minimum Average Average Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate for Funds for Funds for Funds for Funds for Funds for Funds Borrowed Borrowed Loaned Loaned Borrowed Loaned Three Months from the from the to the to the from the to the Ended Utility Utility Utility Utility Utility Utility March 31, Money Pool Money Pool Money Pool Money Pool Money Pool Money Pool 2017 1.27 % 0.92 % 1.03 % 0.92 % 1.08 % 0.99 % 2016 0.83 % 0.69 % 0.82 % 0.69 % 0.74 % 0.73 % |
Direct Borrowing Activity | Borrowings Maximum Maximum Average Average from Loans to Borrowings Loans Borrowings Loans AEP as of AEP as of from AEP to AEP from AEP to AEP March 31, 2017 March 31, 2017 (in thousands) $ 1,089 $ 54,681 $ 1,081 $ 27,655 $ 1,079 $ 10,256 |
Maximum Minimum and Average Interest Rates for Funds Borrowed from and Loaned to AEP [Table Text Block] | Maximum Minimum Maximum Minimum Average Average Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate Interest Rate for Funds for Funds for Funds for Funds for Funds for Funds Three Months Borrowed Borrowed Loaned Loaned Borrowed Loaned Ended from from to to from to March 31, AEP AEP AEP AEP AEP AEP 2017 1.27 % 0.92 % 1.27 % 0.92 % 1.03 % 1.04 % 2016 0.83 % 0.69 % 0.83 % 0.69 % 0.73 % 0.73 % |
Priority Debt Covenants | Advances from Advances to Secured Priority Affiliates Affiliates Debt Debt (in thousands) $ 154,958 $ 10,256 $ — $ 154,958 |
Rate Matters - Transmission Co
Rate Matters - Transmission Companies (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
FERC Transmission Complaint [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Approved Return on Common Equity | 10.99% |
Intervenor Recommended Return on Common Equity | 8.32% |
2017 Transmission Rate Filings [Member] | AEP West Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | $ 96,501 |
2017 Transmission Rate Filings [Member] | AEP Oklahoma Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | 96,376 |
2017 Transmission Rate Filings [Member] | AEP Southwestern Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | 125 |
2017 Transmission Rate Filings [Member] | AEP East Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | 583,000 |
2016 Transmission Rate Filings [Member] | AEP West Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | 63,807 |
2016 Transmission Rate Filings [Member] | AEP Oklahoma Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | 63,676 |
2016 Transmission Rate Filings [Member] | AEP Southwestern Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement | 131 |
2015 Transmission Revenues [Member] | AEP West Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Under-Recovered Revenues | 5,916 |
2015 Transmission Revenues [Member] | AEP Oklahoma Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Under-Recovered Revenues | 5,969 |
2015 Transmission Revenues [Member] | AEP Southwestern Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Over-Recovered Revenues | (53) |
2015 Transmission Revenues [Member] | AEP East Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Under-Recovered Revenues | 33,000 |
2016 Transmission Revenues [Member] | AEP West Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Under-Recovered Revenues | 9,328 |
2016 Transmission Revenues [Member] | AEP Oklahoma Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Under-Recovered Revenues | 9,332 |
2016 Transmission Revenues [Member] | AEP Southwestern Transmission Company [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Over-Recovered Revenues | (4) |
2016 Transmission Revenues [Member] | AEP East Transmission Companies [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Under-Recovered Revenues | $ 65,000 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Reportable Segment Information | ||||
Sales Revenue, Net | $ 19,194 | $ 21,974 | ||
Revenue from Related Parties | 133,390 | 57,660 | ||
Other Revenue, Net | 75 | 1 | ||
Revenues | 152,659 | 79,635 | ||
Investment Income, Interest and Dividend | 218 | 65 | ||
Interest Expense | 15,950 | 10,812 | ||
Income Tax Expense (Benefit) | 28,530 | 10,516 | ||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | ||
Net Income (Loss) | 56,956 | 25,843 | ||
Balance Sheet Information | ||||
Total Property, Plant and Equipment | 5,346,756 | $ 5,054,185 | ||
Accumulated Depreciation and Amortization | 117,821 | 99,566 | ||
TOTAL PROPERTY, PLANT AND EQUIPMENT - NET | 5,228,935 | 4,954,619 | ||
Notes Receivable, Related Parties, Noncurrent | 0 | 0 | ||
Total Assets | 5,641,189 | 5,349,795 | ||
Total Long-term Debt Outstanding | 1,931,364 | 1,931,984 | ||
State Transcos [Member] | ||||
Reportable Segment Information | ||||
Sales Revenue, Net | 19,194 | 21,974 | ||
Revenue from Related Parties | 133,390 | 57,660 | ||
Other Revenue, Net | 75 | 1 | ||
Revenues | 152,659 | 79,635 | ||
Investment Income, Interest and Dividend | 146 | 28 | ||
Interest Expense | 15,795 | 10,810 | ||
Income Tax Expense (Benefit) | 28,452 | 10,516 | ||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | ||
Net Income (Loss) | 56,812 | 25,844 | ||
Balance Sheet Information | ||||
Total Property, Plant and Equipment | 5,346,756 | 5,054,185 | ||
Accumulated Depreciation and Amortization | 117,821 | 99,566 | ||
TOTAL PROPERTY, PLANT AND EQUIPMENT - NET | 5,228,935 | 4,954,619 | ||
Notes Receivable, Related Parties, Noncurrent | 0 | 0 | ||
Total Assets | 5,631,235 | 5,337,501 | ||
Total Long-term Debt Outstanding | 1,931,445 | 1,931,984 | ||
AEPTCo Parent [Member] | ||||
Reportable Segment Information | ||||
Sales Revenue, Net | 0 | 0 | ||
Revenue from Related Parties | 0 | 0 | ||
Other Revenue, Net | 0 | 0 | ||
Revenues | 0 | 0 | ||
Investment Income, Interest and Dividend | 19,070 | 13,886 | ||
Interest Expense | 19,153 | 13,851 | ||
Income Tax Expense (Benefit) | 78 | 0 | ||
Income (Loss) from Subsidiaries, Net of Tax | 56,812 | 25,844 | ||
Net Income (Loss) | 56,956 | 25,843 | ||
Balance Sheet Information | ||||
Total Property, Plant and Equipment | 0 | 0 | ||
Accumulated Depreciation and Amortization | 0 | 0 | ||
TOTAL PROPERTY, PLANT AND EQUIPMENT - NET | 0 | 0 | ||
Notes Receivable, Related Parties, Noncurrent | 1,950,000 | 1,950,000 | ||
Total Assets | 4,132,527 | 3,947,814 | ||
Total Long-term Debt Outstanding | 1,949,919 | 1,950,000 | ||
Consolidation, Eliminations [Member] | ||||
Reportable Segment Information | ||||
Sales Revenue, Net | 0 | 0 | ||
Revenue from Related Parties | 0 | 0 | ||
Other Revenue, Net | 0 | 0 | ||
Revenues | 0 | 0 | ||
Investment Income, Interest and Dividend | [1] | (18,998) | (13,849) | |
Interest Expense | [1] | (18,998) | (13,849) | |
Income Tax Expense (Benefit) | 0 | 0 | ||
Income (Loss) from Subsidiaries, Net of Tax | [2] | (56,812) | (25,844) | |
Net Income (Loss) | [2] | (56,812) | $ (25,844) | |
Balance Sheet Information | ||||
Total Property, Plant and Equipment | 0 | 0 | ||
Accumulated Depreciation and Amortization | 0 | 0 | ||
TOTAL PROPERTY, PLANT AND EQUIPMENT - NET | 0 | 0 | ||
Notes Receivable, Related Parties, Noncurrent | [3] | (1,950,000) | (1,950,000) | |
Total Assets | [4] | (4,122,573) | (3,935,520) | |
Total Long-term Debt Outstanding | [3] | $ (1,950,000) | $ (1,950,000) | |
[1] | Elimination of intercompany interest income/interest expense on affiliated debt arrangement. | |||
[2] | Elimination of AEPTCo Parent’s equity earnings in the State Transcos. | |||
[3] | Elimination of intercompany debt. | |||
[4] | Primarily relates to the elimination of AEPTCo Parent’s investment in the State Transcos and Notes Receivable from the State Transcos. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Book Values and Fair Values of Long - term Debt | ||
Total Long-term Debt Outstanding | $ 1,931,364 | $ 1,931,984 |
Long-term Debt, Fair Value | $ 2,072,100 | $ 1,984,318 |
Financing Activities (Details)
Financing Activities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Money Pool Participants Money Pool Activity And Authorized Borrowing Limits [Abstract] | ||||
Authorized Short Term Borrowing Limit | $ 795,000 | |||
Priority Debt Covenant [Abstract] | ||||
Due to Related Parties, Current | 154,958 | $ 4,077 | ||
Advances to Affiliate | 10,256 | |||
Secured Debt | 0 | |||
Priority Debt | $ 154,958 | |||
Financing Activities (Textuals) [Abstract] | ||||
Maximum Percentage Debt to Capitalization | 67.50% | |||
Sub-Limit of Secured Debt | $ 50,000 | |||
Maximum Percentage of Consolidated Tangible Net Assets | 10.00% | |||
Tangible Net Asset | $ 486,000 | |||
Utility [Member] | ||||
Money Pool Participants Money Pool Activity And Authorized Borrowing Limits [Abstract] | ||||
Maximum Borrowings from Money Pool | 228,090 | |||
Maximum Loans to Money Pool | 52,871 | |||
Average Borrowings from Money Pool | 112,173 | |||
Average Loans to Money Pool | 12,319 | |||
Net Loans (Borrowings) to/from Money Pool | $ 153,879 | |||
Maximum and Minimum Interest Rates | ||||
Maximum Interest Rate | 1.27% | 0.83% | ||
Minimum Interest Rate | 0.92% | 0.69% | ||
Maximum Interest Rate For Funds Loaned | 1.03% | 0.82% | ||
Minimum Interest Rate for Funds Loaned | 0.92% | 0.69% | ||
Average Interest Rates for Funds Borrowed From and Loaned to Money Pool [Abstract] | ||||
Average Interest Rate For Funds Borrowed | 1.08% | 0.74% | ||
Average Interest Rate For Funds Loaned | 0.99% | 0.73% | ||
Direct Borrowing [Member] | ||||
Money Pool Participants Money Pool Activity And Authorized Borrowing Limits [Abstract] | ||||
Maximum Borrowings from Money Pool | $ 1,089 | |||
Maximum Loans to Money Pool | 54,681 | |||
Average Borrowings from Money Pool | 1,081 | |||
Average Loans to Money Pool | 27,655 | |||
Borrowings from Parent | 1,079 | |||
Loans to Parent | $ 10,256 | |||
Maximum and Minimum Interest Rates | ||||
Maximum Interest Rate | 1.27% | 0.83% | ||
Minimum Interest Rate | 0.92% | 0.69% | ||
Maximum Interest Rate For Funds Loaned | 1.27% | 0.83% | ||
Minimum Interest Rate for Funds Loaned | 0.92% | 0.69% | ||
Average Interest Rates for Funds Borrowed From and Loaned to Money Pool [Abstract] | ||||
Average Interest Rate For Funds Borrowed | 1.03% | 0.73% | ||
Average Interest Rate For Funds Loaned | 1.04% | 0.73% | ||
Subsequent Event [Member] | ||||
Financing Activities (Textuals) [Abstract] | ||||
Proceeds from Contributed Capital | $ 10,200 | |||
Ohio Transco [Member] | Subsequent Event [Member] | ||||
Financing Activities (Textuals) [Abstract] | ||||
Proceeds from Contributed Capital | 7,500 | |||
West Virginia Transco [Member] | Subsequent Event [Member] | ||||
Financing Activities (Textuals) [Abstract] | ||||
Proceeds from Contributed Capital | $ 2,700 |