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

On March 10, 2021, American Electric Power Company, Inc. ("AEP") entered into a $500,000,000 credit agreement ("Credit Agreement"), dated as of March 10, 2021, among AEP, the Initial Lenders party thereto and U.S. Bank National Association, as Administrative Agent and borrowed the full amount. We plan to use the borrowing to reduce outstanding commercial paper and for other general corporate purposes. We expect to have sufficient liquidity in the form of cash on hand and from operations and available credit capacity to support our funding needs.

The Credit Agreement contains 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 Agreement. Nonperformance by AEP of these covenants could result in an event of default under the Credit Agreement. 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 Agreement and permit the lenders to declare AEP's outstanding amounts payable.

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