| Issuer: | AEP Texas Inc. | |
| Expected Ratings*: | Baa1 (negative) by Moody’s Investors Service, Inc. A- (stable) by S&P Global Ratings | |
| Designation: | Senior Notes, Series H, due 2050 | |
| Principal Amount: | $450,000,000 | |
| Maturity: | January 15, 2050 | |
| Coupon: | 3.45% | |
| Interest Payment Dates: | January 15 and July 15 | |
| First Interest Payment Date: | July 15, 2020 | |
| Treasury Benchmark: | 2.25% due August 15, 2049 | |
| Treasury Yield: | 2.175% | |
| Reoffer Spread: | T+130 basis points | |
| Yield to Maturity: | 3.475% | |
| Price to Public: | 99.532% of the principal amount thereof | |
| Transaction Date: | December 3, 2019 | |
| Settlement Date: | December 5, 2019 (T+2) | |
| Redemption Terms: | ||
| Make-whole call: | Prior to July 15, 2049 at a discount rate of the Treasury Rate plus 20 basis points | |
| Par call: | On or after July 15, 2049 at par | |
| Minimum Denomination: | $2,000 and integral multiples of $1,000 in excess thereof | |
| CUSIP/ISIN: | 00108W AK6/US00108WAK62 | |
| Joint Book-Running Managers: | BNP Paribas Securities Corp. Credit Agricole Securities (USA) Inc. MUFG Securities Americas Inc. Scotia Capital (USA) Inc. | |
| Co-Managers: | BBVA Securities Inc. SMBC Nikko Securities America, Inc. TD Securities (USA) LLC | |
