ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF BALANCE SHEET ARRANGEMENT OF A REGISTRANT

On March 31, 2021, American Electric Power Company, Inc. ("AEP") entered into two credit agreements, a 5-year $4,000,000,000 facility (March 2026 maturity) and a 2-year $1,000,000,000 facility (March 2023 maturity), (collectively, "Credit Agreements").

AEP entered into a $4,000,000,000 Fifth Amended and Restated Credit Agreement, dated March 31, 2021, among AEP, the Initial Lenders named therein, the LC Issuing Banks party thereto, and Wells Fargo Bank, National Association, as Administrative Agent. This Credit Agreement amends and restates the $3,000,000,000 Fourth Amended and Restated Credit Agreement, dated as of June 30, 2016, among AEP, the Lenders party thereto, the LC Issuing Banks named therein and Wells Fargo Bank, National Association, as Administrative Agent. Among the changes to the Credit Agreement was the inclusion of a sustainability-linked pricing metric which permits an interest rate increase or reduction by meeting or missing targets related to environmental sustainability, specifically renewable energy generation.

AEP also entered into a $1,000,000,000 Credit Agreement, dated March 31, 2021, among AEP, the Initial Lenders named therein, and Wells Fargo Bank, National Association, as Administrative Agent. This Credit Agreement also contained a sustainability-linked pricing metric which permits an interest rate increase or reduction by meeting or missing targets related to environmental sustainability, specifically renewable energy generation.

Borrowings and letters of credit issued under the Credit Agreements are available upon customary terms and conditions for facilities of this type. The Credit Agreements contain certain covenants and require AEP to maintain its percentage of debt to total capitalization at a level that does not exceed 67.5%. The method for calculating outstanding debt and other capital is contractually defined in the Credit Agreements. Nonperformance by AEP of these covenants could result in an event of default under the Credit Agreements. The acceleration of AEP's payment obligations, or the obligations of certain of its respective subsidiaries, prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $50 million would cause an event of default under the Credit Agreements and permit the lenders to declare AEP's outstanding amounts payable. The Credit Agreements do not permit the lenders to refuse a draw on either facility if a material adverse change occurs.

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