See Notes to Financial Statements of Registrants beginning on page 229. 171 Years Ended December 31, 2020 2019 2018 OPERATING ACTIVITIES Net Income $ 369.7  $ 306.3  $ 367.8  Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: Depreciation and Amortization 507.5  466.8  428.4  Deferred Income Taxes (26.2) (126.2) (16.8) Asset Impairments and Other Related Charges - Coal Fired Generation —  92.9  —  Allowance for Equity Funds Used During Construction (14.6) (16.6) (13.2) Mark-to-Market of Risk Management Contracts 18.8  19.9  (33.0) Pension Contributions to Qualified Plan Trust (7.0) —  —  Deferred Fuel Over/Under-Recovery, Net 37.2  57.1  (10.8) Re-Establishment of Regulatory Asset - Coal Fired Generation (49.0) —  —  Change in Other Noncurrent Assets (40.4) (38.2) 58.1  Change in Other Noncurrent Liabilities 11.2  (40.3) (4.8) Changes in Certain Components of Working Capital: Accounts Receivable, Net (30.2) 35.7  33.6  Fuel, Materials and Supplies (38.2) (93.4) 27.8  Accounts Payable (48.1) 37.7  (13.3) Accrued Taxes, Net 31.3  (10.2) (13.2) Other Current Assets 18.3  15.4  (6.1) Other Current Liabilities (28.3) (45.5) 42.1  Net Cash Flows from Operating Activities 712.0  661.4  846.6  INVESTING ACTIVITIES Construction Expenditures (767.4) (862.6) (780.7) Change in Advances to Affiliates, Net 0.7  0.9  0.5  Other Investing Activities 8.8  24.3  10.8  Net Cash Flows Used for Investing Activities (757.9) (837.4) (769.4) FINANCING ACTIVITIES Issuance of Long-term Debt – Nonaffiliated 606.9  478.2  203.2  Change in Advances from Affiliates, Net (218.1) 31.1  19.6  Retirement of Long-term Debt – Nonaffiliated (140.3) (180.5) (124.0) Principal Payments for Finance Lease Obligations (7.4) (6.7) (6.9) Dividends Paid on Common Stock (200.0) (150.0) (160.0) Other Financing Activities 0.7  0.9  1.5  Net Cash Flows from (Used for) Financing Activities 41.8  173.0  (66.6) Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash for Securitized Funding (4.1) (3.0) 10.6  Cash, Cash Equivalents and Restricted Cash for Securitized Funding at Beginning of Period 26.8  29.8  19.2  Cash, Cash Equivalents and Restricted Cash for Securitized Funding at End of Period $ 22.7  $ 26.8  $ 29.8  SUPPLEMENTARY INFORMATION Cash Paid for Interest, Net of Capitalized Amounts $ 207.1  $ 190.7  $ 182.0  Net Cash Paid (Received) for Income Taxes —  63.0  (13.0) Noncash Acquisitions Under Finance Leases 7.2  8.8  5.5  Construction Expenditures Included in Current Liabilities as of December 31, 105.6  149.7  134.4  APPALACHIAN POWER COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2020, 2019 and 2018 (in millions)