Borrowings from Parent

  
  
AEP has a direct financing relationship with AEPTCo to meet its short-term borrowing needs. The amounts of outstanding loans to and borrowings from AEP as of June 30, 2022 and December 31, 2021 are included in Advances to Affiliates and Advances from Affiliates, respectively, on AEPTCo’s balance sheets. AEPTCo’s direct borrowing and lending activity with AEP and corresponding authorized borrowing limit for the six months ended June 30, 2022 are described in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Maximum |   | Maximum |   | Average |   | Average |   | Borrowings from |   | Loans to |  | Authorized |  |
| Borrowings |   | Loans |   | Borrowings |   | Loans |   | AEP as of |   | AEP as of |  | Short-term |  |
| from AEP |   | to AEP |   | from AEP |   | to AEP |   | June 30, 2022 |  | June 30, 2022 |  | Borrowing Limit |  |
| (in millions) |
| $ | 52.4  |  |  | $ | 141.8  |  |  | $ | 6.8  |  |  | $ | 62.0  |  |  | $ | 25.7  |  |  | $ | —  |  |  | $ | 50.0  |  | (a) |

  
(a)    Amount represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions.  
The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool are summarized in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Six Months Ended June 30, |
|  |  | 2022 |  | 2021 |
| Maximum Interest Rate |  | 2.11  | % |  | 0.40  | % |
| Minimum Interest Rate |  | 0.10  | % |  | 0.25  | % |

  
The average interest rates for funds borrowed from and loaned to the Utility Money Pool are summarized for all Registrant Subsidiaries in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Average Interest Rate for Funds |  | Average Interest Rate for Funds |
|  |  | Borrowed from the Utility Money Pool |  | Loaned to the Utility Money Pool |
|  |  | for Six Months Ended June 30, |  | for Six Months Ended June 30, |
| Company |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| AEP Texas |  | 0.90  | % |  | 0.33  | % |  | 1.48  | % |  | 0.36  | % |
| AEPTCo |  | 0.93  | % |  | 0.33  | % |  | 1.49  | % |  | 0.34  | % |
| APCo |  | 1.08  | % |  | 0.28  | % |  | 0.95  | % |  | 0.36  | % |
| I&M |  | 0.92  | % |  | 0.32  | % |  | 0.96  | % |  | 0.35  | % |
| OPCo |  | 0.83  | % |  | 0.34  | % |  | 1.20  | % |  | 0.29  | % |
| PSO |  | 1.17  | % |  | 0.34  | % |  | 0.65  | % |  | 0.28  | % |
| SWEPCo |  | 1.25  | % |  | 0.32  | % |  | 0.55  | % |  | 0.38  | % |

  
Maximum, minimum and average interest rates for funds loaned to the Nonutility Money Pool are summarized in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Six Months Ended June 30, 2022 |  | Six Months Ended June 30, 2021 |
|   |   | Maximum |   | Minimum |   | Average |  | Maximum |   | Minimum |   | 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 |
|  |   | Loaned to |   | Loaned to |   | Loaned to |  | Loaned to |   | Loaned to |   | Loaned to |
|  |   | the Nonutility |   | the Nonutility |   | the Nonutility |  | the Nonutility |   | the Nonutility |   | the Nonutility |
| Company |   | Money Pool |   | Money Pool |   | Money Pool |  | Money Pool |   | Money Pool |   | Money Pool |
| AEP Texas |   | 2.11  | % |  | 0.46  | % |  | 0.98  | % |  | 0.40  | % |  | 0.25  | % |  | 0.33  | % |
| SWEPCo |   | 2.11  | % |  | 0.46  | % |  | 0.98  | % |  | 0.40  | % |  | 0.25  | % |  | 0.33  | % |

  
  
  
  
  
  
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