Item 2. PROPERTIES

GENERATION FACILITIES

As of December 31, 2019, the AEP System owned (or leased where indicated) generation plants, with locations and net maximum power capabilities (winter rating), are shown in the following tables:

Vertically Integrated Utilities Segment

AEGCo
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Rockport, Units 1 and 2 – 50% of each (a)		2		IN		Steam - Coal		1,310			1984

(a)	Rockport Plant, Unit 2 is leased.

a

APCo
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Buck		3		VA		Hydro		11			1912
Byllesby		4		VA		Hydro		19			1912
Claytor		4		VA		Hydro		75			1939
Leesville		2		VA		Hydro		50			1964
London		3		WV		Hydro		14			1935
Marmet		3		WV		Hydro		14			1935
Niagara		2		VA		Hydro		2			1906
Winfield		3		WV		Hydro		15			1938
Ceredo		6		WV		Natural Gas		516			2001
Dresden		3		OH		Natural Gas		613			2012
Smith Mountain		5		VA		Pumped Storage		585			1965
Amos		3		WV		Steam - Coal		2,930			1971
Mountaineer		1		WV		Steam - Coal		1,320			1980
Clinch River		2		VA		Steam - Natural Gas		465			1958
Total MWs								6,629

I&M
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Berrien Springs		12		MI		Hydro		6			1908
Buchanan		10		MI		Hydro		3			1919
Constantine		4		MI		Hydro		1			1921
Elkhart		3		IN		Hydro		3			1913
Mottville		4		MI		Hydro		2			1923
Twin Branch Hydro		8		IN		Hydro		5			1904
Deer Creek Solar Farm		NA		IN		Solar		3			2016
Olive Solar Farm		NA		IN		Solar		5			2016
Twin Branch Solar Farm		NA		IN		Solar		3			2016
Watervliet		NA		MI		Solar		5			2016
Rockport (Units 1 and 2, 50% of each) (a)		2		IN		Steam - Coal		1,310			1984
Cook		2		MI		Steam - Nuclear		2,288			1975
Total MWs								3,634

NA Not applicable.

(a)	Rockport Plant, Unit 2 is leased.

The following table provides operating information related to the Cook Plant:

	Cook Plant
	Unit 1			Unit 2
Year Placed in Operation	1975			1978
Year of Expiration of NRC License	2034			2037
Nominal Net Electrical Rating in MWs	1,084			1,204
Annual Capacity Utilization
2019	77.3	%		84.3	%
2018	97.9	%		79.5	%
2017	76.5	%		98.8	%

KPCo
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Mitchell (a)		2		WV		Steam - Coal		780			1971
Big Sandy		1		KY		Steam - Natural Gas		280			1963
Total MWs								1,060

(a)	KPCo owns a 50% interest in the Mitchell Plant units. WPCo owns the remaining 50%. Figures presented reflect only the portion owned by KPCo.

PSO
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Comanche		3		OK		Natural Gas		248			1973
Riverside, Units 3 and 4		2		OK		Natural Gas		160			2008
Southwestern, Units 4 and 5		2		OK		Natural Gas		170			2008
Weleetka (a)		2		OK		Natural Gas		100			1975
Northeastern, Unit 1		1		OK		Natural Gas		470			1961
Northeastern, Unit 3		1		OK		Steam - Coal		469			1979
Oklaunion Power Station (b) (c)		1		TX		Steam - Coal		105			1986
Northeastern, Unit 2		1		OK		Steam - Natural Gas		434			1961
Riverside, Units 1 and 2		2		OK		Steam - Natural Gas		901			1974
Southwestern, Units 1, 2 and 3		3		OK		Steam - Natural Gas		451			1952
Tulsa		2		OK		Steam - Natural Gas		325			1956
Total MWs								3,833

(a)	Weleetka Unit 6 was retired in March 2019.

(b)	Jointly-owned with AEP Texas and nonaffiliated entities. Figures presented reflect only the portion owned by PSO.

(c)	In September 2018, management announced plans to close the plant by October 2020.

SWEPCo
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Mattison		4		AR		Natural Gas		315			2007
Stall		3		LA		Natural Gas		534			2010
Flint Creek (a)		1		AR		Steam - Coal		258			1978
Turk (a)		1		AR		Steam - Coal		477			2012
Welsh		2		TX		Steam - Coal		1,053			1977
Dolet Hills (a)(b)		1		LA		Steam - Lignite		257			1986
Pirkey (a)		1		TX		Steam - Lignite		580			1985
Arsenal Hill		1		LA		Steam - Natural Gas		110			1960
Knox Lee (c)(d)		4		TX		Steam - Natural Gas		404			1950
Lieberman (d)		3		LA		Steam - Natural Gas		242			1947
Lone Star (d)		1		TX		Steam - Natural Gas		50			1954
Wilkes		3		TX		Steam - Natural Gas		889			1964
Total MWs								5,169

(a)	Jointly-owned with nonaffiliated entities. Figures presented reflect only the portion owned by SWEPCo. The Arkansas jurisdictional portion of SWEPCo’s interest in Turk Plant is not in rate base.

(b)	In January 2020, management announced plans to close the plant at the end of 2026.

(c)	Knox Lee Unit 4 was retired in January 2019. Figures presented include Unit 4 in the total.

(d)	Knox Lee Unit 2 and Unit 3, Lieberman Unit 2 and Lone Star are scheduled for retirement in May 2020.

WPCo
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Mitchell (a)		2		WV		Steam - Coal		780			1971

(a)	17.5% of WPCo’s interest in the Mitchell Plant units was not in rate base during 2019. In 2020 WPCo’s entire interest in the Mitchell Plant will be in rate base. KPCo owns the remaining 50%. Figures presented reflect only the portion owned by WPCo.

Transmission and Distribution Segment

AEP Texas
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Oklaunion Power Station (a) (b) (c)		1		TX		Steam - Coal		355			1986

(a)	Jointly-owned with PSO and nonaffiliated entities. Figures presented reflect only the portion owned by AEP Texas.

(b)	In September 2018, management announced plans to close the plant by October 2020.

(c)	The capacity and energy from the Oklaunion Power Station is sold to AEPEP under a PPA.

Generation & Marketing Segment

AGR
Plant Name		Units		State		Fuel Type		Net Maximum Capacity (MWs)			Year Plant or First Unit Commissioned
Racine		2		OH		Hydro		48			1982
Cardinal		1		OH		Steam - Coal		595			1967
Conesville (a) (b)		1		OH		Steam - Coal		651			1957
Total MWs								1,294

(a)	Jointly-owned with nonaffiliated entities. Figures presented reflect only the portion owned by AGR.

(b)	Conesville Plant Units 5 and 6 closed effective May 31, 2019 and Unit 4 is scheduled to close in May 2020.

Renewable Power
Size of Energy Resource		AEP Energy Supply, LLC Division		Renewable Energy Resource		Location		In-Service or Under Construction
1,212 MW		AEP Renewables		Wind		Eight states (a)		In-service
128 MW		AEP Renewables		Wind		Kansas		Under Construction
20 MW		AEP Renewables		Solar		California		In-service
20 MW		AEP Renewables		Solar		Utah		In-service
50 MW		AEP Renewables		Solar		Nevada		In-service
119 MW		AEP OnSite Partners		Solar		Fifteen states (b)		In-service
28 MW		AEP OnSite Partners		Solar		Three states (c)		Under Construction

(a)	Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota, Pennsylvania, and Texas.

(b)	California, Colorado, Florida, Hawaii, Iowa, Minnesota, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Rhode Island, Texas and Vermont.

(c)	Illinois, New Mexico and Ohio.

In addition to the AGR and Renewable Power generation set forth above, a subsidiary in the Generation & Marketing segment has contractual rights through 2027 from AEP Texas to 355 MWs from the Oklaunion Power Station. AEP Texas co-owns the Oklaunion Power Station with PSO and several nonaffiliated entities. Management has announced plans to close Oklaunion Power Station by October 2020.

TRANSMISSION AND DISTRIBUTION FACILITIES

The following tables set forth the total overhead circuit miles of transmission and distribution lines of the AEP System and its operating companies.

Vertically Integrated Utilities Segment

		Total Overhead Circuit Miles of Transmission and Distribution Lines
APCo		51,665
I&M		21,262
KGPCo		1,404
KPCo		11,138
PSO		18,234
SWEPCo		26,101
WPCo		1,740
Total Circuit Miles		131,544

Transmission and Distribution Utilities Segment

		Total Overhead Circuit Miles of Transmission and Distribution Lines
OPCo		44,944
AEP Texas		45,911
Total Circuit Miles		90,855

AEP Transmission Holdco Segment

The following table sets forth the total overhead circuit miles of transmission lines of certain wholly-owned and joint venture-owned entities:

		Total Overhead Circuit Miles of Transmission Lines
ETT		1,777
IMTCo		575
OHTCo		810
OKTCo		835
WVTCo		242
Pioneer		43
Prairie Wind Transmission		216
Transource Missouri		167
Transource West Virginia		24
Total Circuit Miles		4,689

TITLE TO PROPERTY

The AEP System’s generating facilities are generally located on lands owned in fee simple. The greater portion of the transmission and distribution lines of the AEP System has been constructed over lands of private owners pursuant to easements or along public highways and streets pursuant to appropriate statutory authority. The rights of AEP’s public utility subsidiaries in the realty on which their facilities are located are considered adequate for use in the conduct of their business. Minor defects and irregularities customarily found in title to properties of like size and character may exist, but such defects and irregularities do not materially impair the use of the properties. AEP’s public utility subsidiaries generally have the right of eminent domain which permits them, if necessary, to acquire, perfect or secure titles to or easements on privately held lands used or to be used in their utility operations. Legislation in Ohio and Virginia has restricted the right of eminent domain previously granted for power generation purposes.

SYSTEM TRANSMISSION LINES AND FACILITY SITING

Laws in the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Tennessee, Texas, Virginia and West Virginia require prior approval of sites of generating facilities and/or routes of high-voltage transmission lines. AEP has experienced delays and additional costs in constructing facilities as a result of proceedings conducted pursuant to such statutes and in proceedings in which AEP’s operating companies have sought to acquire rights-of-way through condemnation. These proceedings may result in additional delays and costs in future years.

CONSTRUCTION PROGRAM

With input from its state utility commissions, the AEP System continuously assesses the adequacy of its transmission, distribution, generation and other facilities to plan and provide for the reliable supply of electric power and energy to its customers. In this assessment process, assumptions are continually being reviewed as new information becomes available and assessments and plans are modified, as appropriate. AEP forecasts approximately $6.3 billion of construction expenditures for 2020. Capital expenditures related to North Central Wind Energy Facilities are excluded from this budgeted amount. Estimated construction expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints, environmental regulations, business opportunities, market volatility, economic trends, weather and the ability to access capital. See the “Budgeted Capital Expenditures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2019 Annual Report for additional information.

POTENTIAL UNINSURED LOSSES

Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities, including liabilities relating to damage to AEP’s generation plants and costs of replacement power. Unless allowed to be recovered through rates, future losses or liabilities which are not completely insured could reduce net income and impact the financial conditions of AEP and other AEP System companies. For risks related to owning a nuclear generating unit, see the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2019 Annual Report for additional information.