Commitment from Bank Conduits to Finance Receivables Two

  
  
AEPTCo’s maximum, minimum and average interest rates for funds either borrowed from or loaned to AEP are summarized in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |   | Maximum |  | Minimum |  | Maximum |  | Minimum |  | Average |  | Average |
|  |   | Interest Rate |  | Interest Rate |  | Interest Rate |  | Interest Rate |  | Interest Rate |  | Interest Rate |
| Six Months |   | for Funds |  | for Funds |  | for Funds |  | for Funds |  | for Funds |  | for Funds |
| Ended |   | Borrowed |  | Borrowed |  | Loaned |  | Loaned |  | Borrowed |  | Loaned |
| June 30, |   | from AEP |   | from AEP | to AEP |   | to AEP |   | from AEP |   | to AEP |
| 2022 |   | 2.11  | % |  | 0.46  | % |  | 2.11  | % |  | 0.46  | % |  | 1.02  | % |  | 0.89  | % |
| 2021 |   | 0.86  | % |  | 0.25  | % |  | 0.86  | % |  | 0.25  | % |  | 0.33  | % |  | 0.33  | % |

  
Short-term Debt (Applies to AEP)  
Outstanding short-term debt was as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |   |  | June 30, 2022 |  | December 31, 2021 |
|  |  |  |  | Outstanding |  | Interest |  | Outstanding |  | Interest |
| Company |  | Type of Debt |  | Amount |  | Rate (a) |  | Amount |  | Rate (a) |
|  |  |   |  | (dollars in millions) |
| AEP |  | Securitized Debt for Receivables (b) |  | $ | 750.0  |  |  | 0.61  | % |  | $ | 750.0  |  |  | 0.19  | % |
| AEP |  | Commercial Paper |  | 880.0  |  |  | 2.02  | % |  | 1,364.0  |  |  | 0.34  | % |
| AEP |  | Term Loan (c) |  | 500.0  |  |  | 2.20  | % |  | 500.0  |  |  | 0.81  | % |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Total Short-term Debt |  | $ | 2,130.0  |  |  |   |  | $ | 2,614.0  |  |  |   |

  
(a)Weighted-average rate.(b)Amount of securitized debt for receivables as accounted for under the “Transfers and Servicing” accounting guidance.(c)In March 2022, AEP extended the maturity date of the original 364-Day Term Loan to August 2022.  
Credit Facilities  
For a discussion of credit facilities, see “Letters of Credit” section of Note 5.  
Securitized Accounts Receivables – AEP Credit (Applies to AEP)  
AEP Credit has a receivables securitization agreement with bank conduits. Under the securitization agreement, AEP Credit receives financing from the bank conduits for the interest in the receivables AEP Credit acquires from affiliated utility subsidiaries. These securitized transactions allow AEP Credit to repay its outstanding debt obligations, continue to purchase the operating companies’ receivables and accelerate AEP Credit’s cash collections.  
AEP Credit’s receivables securitization agreement provides a commitment of $750 million from bank conduits to purchase receivables and was amended in September 2021 to include a $125 million and a $625 million facility which expire in September 2023 and 2024, respectively. As of June 30, 2022, the affiliated utility subsidiaries are in compliance with all requirements under the agreement.   
Accounts receivable information for AEP Credit was as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30, |
|  |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
|  |  | (dollars in millions) |
| Effective Interest Rates on Securitization of Accounts Receivable |  | 0.91  | % |  | 0.19  | % |  | 0.61  | % |  | 0.20  | % |
| Net Uncollectible Accounts Receivable Written-Off |  | $ | 6.2  |  |  | $ | 5.8  |  |  | $ | 13.6  |  |  | $ | 15.1  |  |

  
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