Cross Default Provisions Maximum Third Party Obligation Amount

  
  
allow for termination and liquidation of all positions in the event of a default including a failure or inability to post collateral when required.  
Credit-Risk-Related Contingent Features  
Credit Downgrade Triggers (Applies to AEP, APCo, I&M, PSO and SWEPCo)  
A limited number of derivative contracts include collateral triggering events, which include a requirement to maintain certain credit ratings.  On an ongoing basis, AEP’s risk management organization assesses the appropriateness of these collateral triggering events in contracts.  The Registrants have not experienced a downgrade below a specified credit rating threshold that would require the posting of additional collateral.  AEP had derivative contracts with collateral triggering events in a net liability position with a total exposure of $7 million and $9 million as of June 30, 2022 and December 31, 2021, respectively. The Registrant Subsidiaries had no derivative contracts with collateral triggering events in a net liability position as of June 30, 2022 and December 31, 2021.  
Cross-Acceleration Triggers  
Certain interest rate derivative contracts contain cross-acceleration provisions that, if triggered, would permit the counterparty to declare a default and require settlement of the outstanding payable. These cross-acceleration provisions could be triggered if there was a non-performance event by the Registrants under any of their outstanding debt of at least $50 million and the lender on that debt has accelerated the entire repayment obligation. On an ongoing basis, AEP’s risk management organization assesses the appropriateness of these cross-acceleration provisions in contracts. AEP had derivative contracts with cross-acceleration provisions in a net liability position of $99 million and $40 million as of June 30, 2022 and December 31, 2021, respectively. There was no cash collateral posted as of June 30, 2022 and December 31, 2021, respectively. If a cross-acceleration provision would have been triggered, settlement at fair value would have been required. The Registrant Subsidiaries had no derivative contracts with cross-acceleration provisions outstanding as of June 30, 2022 and December 31, 2021.  
Cross-Default Triggers (Applies to AEP, APCo, I&M and SWEPCo)  
In addition, a majority of non-exchange traded commodity contracts contain cross-default provisions that, if triggered, would permit the counterparty to declare a default and require settlement of the outstanding payable. These cross-default provisions could be triggered if there was a non-performance event by Parent or the obligor under outstanding debt or a third-party obligation that is $50 million or greater.  On an ongoing basis, AEP’s risk management organization assesses the appropriateness of these cross-default provisions in the contracts. AEP had derivative liabilities subject to cross-default provisions in a net liability position of $228 million and $76 million as of June 30, 2022 and December 31, 2021, respectively, after considering contractual netting arrangements. Cash collateral posted as of June 30, 2022 and December 31, 2021 was not material. If a cross-default provision would have been triggered, settlement at fair value would have been required. The Registrant Subsidiaries’ derivative contracts with cross-default provisions outstanding as of June 30, 2022 and December 31, 2021 were not material.  
Warrants Held in Investee (Applies to AEP)  
AEP holds an investment in ChargePoint, which completed an initial public offering (IPO) in February 2021 via a reverse merger with a public special purpose acquisition company. AEP’s interests in ChargePoint consisted of a noncontrolling equity interest of common shares, which were accounted for at their fair value of $21 million as of June 30, 2022, and common share warrants. AEP recorded unrealized loss of $9 million and $8 million associated with the common shares for the three and six months ended June 30, 2022 and unrealized gains of $11 million and $38 million for the three and six months ended June 30, 2021, respectively, presented in Other Income (Expense) on AEP’s statements of income.  
Management has determined the common share warrants are derivative instruments based on the accounting guidance for “Derivatives and Hedging”. As of June 30, 2022 and December 31, 2021, the warrants were valued at 201
