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|--------|
|        |  |  |  |  |
|   |   |   |   |   |

|   |                                                                                                                                  |
|---|----------------------------------------------------------------------------------------------------------------------------------|
| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2018 |

|   |                                                                                                                                                |
|---|------------------------------------------------------------------------------------------------------------------------------------------------|
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from __________ to_________ |

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|---------------------------------------------|
|                                             |  |
| Commission File Number of issuing entity:   | 333-179092-01 |
| Central Index Key Number of issuing entity: | 0001539816 |

|                                                    |
|----------------------------------------------------|
|                                                    |  |
| Commission File Number of depositor and sponsor:   | 333-179092 |
| Central Index Key Number of depositor and sponsor: | 0001721781 |

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|-------------------------------------------------------------------|
|                                                                   |
| AEP Texas Inc.                                                    |
| (Exact name of depositor and sponsor as specified in its charter) |

|                                          |
|------------------------------------------|
|                                          |  |  |  |
| Delaware                                 |   |   | 51-0007707 |
| (State or other jurisdiction of          |   |   | (I.R.S. Employer Identification No.) |
| incorporation or organization)           |   |   |   |
|                                     |   |   |   |
| 539 N. Carancahua Street                 |   |   |   |
| Suite 1700                               |   |   |   |
| Corpus Christi, Texas                    |   |   | 78401 |
| (Address of principal executive offices) |   | (Zip Code) |

|                                                                                                                                                                                                                                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                          |  |  |
| Securities registered pursuant to Section 12(b) of the Act:   None                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                     |
| Securities registered pursuant to Section 12(g) of the Act:   None                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                     |   |   |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                  | Yes o | No. x |
|                                                                                                                                                                                                                                                                                                                                                     |   |   |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.                                                                                                                                                                                                                    |  Yes o |   No. x |
|                                                                                                                                                                                                                                                                                                                                                     |   |   |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes x | No. o |

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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
| Indicate by checkmark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                                                    | Yes x | No. o   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.                                                                                                          | x |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act of 1934, as amended. Check One: |   |   |
| Large accelerated filer    o                                                                                                                                                                                                                                                                                                                                                                                                                         |   Accelerated filer    o |   |
| Non-accelerated filer      x                                                                                                                                                                                                                                                                                                                                                                                                                         |    Smaller reporting company   o |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |    Emerging growth company  o |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                                                                                                                                                                                                                                                          | Yes o |    No. x   |

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|                   |
|-------------------|
|                   |  |  |
| Name              | Age | Background |
| Brian X. Tierney  | 51 | President and manager of the Company.  Vice president, chief financial officer and director of AEP Texas Inc. (AEP Texas), executive vice president and chief financial officer of American Electric Power Company, Inc. (AEP), and executive vice president, chief financial officer and director of American Electric Power Service Corporation, a subsidiary of AEP (Service Corporation).  Joined the Service Corporation in 1998 and was appointed senior vice president-energy marketing in 2003, became senior vice president-commercial operations in 2005, became executive vice president-AEP utilities east in 2006 and assumed his present position in 2009.  Vice president and director of certain other AEP System companies. |
| Julia A. Sloat    | 49 | Treasurer and manager of the Company.  Treasurer of AEP Texas, treasurer of AEP and senior vice president and treasurer of the Service Corporation since January 1, 2019.  Joined the Service Corporation in 1999 and was appointed as director-investor relations in January 2003, became managing director-investor relations in November 2003, became vice president-investor relations in September 2004, became vice president-investor relations and strategic initiatives in June 2007 and became vice president and  treasurer in January 2008. From August 2008 to August 2009 served as vice president-investor relations & corporate finance for Tween Brands, Inc.  Rejoined the Service Corporation in September 2009 as managing director-regulatory case management and became vice president-regulatory case management in August 2010.  Was President-AEP Ohio from May 2016 through December 2018.  Treasurer of certain other AEP System companies. |
| Renee V. Hawkins  | 53 | Assistant treasurer and manager of the Company.  Managing director corporate finance of the Service Corporation since 2003 and assistant treasurer of the Service Corporation since 2008.  Assistant Treasurer of certain other AEP System companies. |
| Victor A. Duva    | 60 | Manager of the Company.  President, CT Corporation Staffing, Inc., a subsidiary of CT Corporation System, since 2003.  From 1997 to 2002, Assistant Vice President and Officer Manager for CT Corporation’s Philadelphia office and, prior to that, a variety of positions at CT Corporation System since January 1981.  Mr. Duva presently serves as an independent manager for AEP Texas Central Transition Funding II LLC (TCC Funding II). |
| Daniel P. McMahon | 58 | Manager of the Company.  Vice President of Operations for CT Corporation System since 2008.  Also served as the National Service Director at CT Corporation System from 2004 to 2008.  Mr. McMahon presently serves as an independent manager for TCC Funding II. |

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|        |
|--------|
|        |  |  |  |  |
|   |   | 1. |   | Financial Statements. |
|   |   |   |   | Omitted pursuant to General Instruction J of Form 10-K as listed under Item 8 of this report. |
|   |   |   |   |   |
|   |   | 2. |   | Financial Statement Schedules. |
|   |   |   |   | Omitted pursuant to General Instruction J of Form 10-K as listed under Item 8 of this report. |
|   |   |   |   |   |
|   |   | 3. |   | Exhibits required by Item 601 of Regulation S-K (exhibits marked with an asterisk are filed herewith): |
|   |   |   |   | 3.1 Certificate of Formation of the Issuing Entity filed with the Delaware Secretary of State on January 5, 2012. |

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|        |
|--------|
|        |  |  |  |  |
|   |   |   |   | 3.2 Amended and Restated Limited Liability Company Agreement of the Issuing Entity executed as of February 27, 2012.4.1 Indenture dated as of March 14, 2012 between the Issuing Entity and U.S. Bank National Association providing for the issuance of Senior Secured Transition Bonds.4.2 Form of Senior Secured Transition Bonds.10.1 Transition Property Purchase and Sale Agreement dated as of March 14, 2012 between the Issuing Entity and AEP Texas Inc. (as successor by merger to AEP Texas Central Company), as seller.10.2 Transition Property Servicing Agreement dated as of March 14, 2012 between the Issuing Entity and AEP Texas Inc. (as successor by merger to AEP Texas Central Company), as servicer.10.3 Administration Agreement dated as of March 14, 2012 between the Issuing Entity and AEP Texas Inc. (as successor by merger to AEP Texas Central Company), as servicer.10.4  Amended and Restated Intercreditor Agreement, dated as of March 14, 2012, by and among AEP Texas Inc. (as successor by merger to AEP Texas Central Company), AEP Texas Central Transition Funding LLC, U.S. Bank National Association, AEP Texas Central Transition Funding II LLC, The Bank of New York Mellon and AEP Texas Central Transition Funding III LLC.*31.1 Certification.*33.1 Report on assessment of compliance with servicing criteria for asset-backed issuers for AEP Texas Inc., as servicer.*33.2 Report on assessment of compliance with servicing criteria for asset-backed issuers for U.S. Bank National Association, as Indenture Trustee.*34.1 Attestation report on assessment of compliance with servicing criteria for asset-backed securities of PricewaterhouseCoopers LLP on behalf of AEP Texas Inc., as servicer.*34.2 Attestation report on assessment of compliance with servicing criteria for asset-backed securities of Ernst & Young LLP on behalf of U.S. Bank National Association, as Indenture Trustee.*35.1 Servicer compliance statement of AEP Texas Inc., as servicer. |

3.1 Certificate of Formation of the Issuing Entity filed with the Delaware Secretary of State on January 5, 2012 (incorporated by reference to exhibit 3.1 included as an exhibit to the Sponsor’s Form S-3/A dated February 27, 2012).

3.2 Amended and Restated Limited Liability Company Agreement of the Issuing Entity executed as of February 27, 2012 (incorporated by reference to exhibit 3.2 included as an exhibit to the Sponsor’s Form S-3/A dated February 27, 2012).

4.1 Indenture dated as of March 14, 2012 between the Issuing Entity and U.S. Bank National Association providing for the issuance of Senior Secured Transition Bonds (incorporated by reference to exhibit 4.1 included as an exhibit to the Sponsor’s Form 8-K dated March 14, 2012).

4.2 Form of Senior Secured Transition Bonds (included as Exhibit A to the Indenture filed as Exhibit 4.1) (incorporated by reference to exhibit 4.1 included as an exhibit to the Sponsor’s Form 8-K dated March 14, 2012).

10.1 Transition Property Purchase and Sale Agreement dated as of March 14, 2012 between the Issuing Entity and AEP Texas Inc. (as successor by merger to AEP Texas Central Company), as seller (incorporated by reference to exhibit 99.2 included as an exhibit to the Sponsor’s Form 8-K dated March 14, 2012).

10.2 Transition Property Servicing Agreement dated as of March 14, 2012 between the Issuing Entity and AEP Texas Inc. (as successor by merger to AEP Texas Central Company), as servicer (incorporated by reference to exhibit 99.1 included as an exhibit to the Sponsor’s Form 8-K dated March 14, 2012).

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10.3 Administration Agreement dated as of March 14, 2012 between the Issuing Entity and AEP Texas Inc. (as successor by merger to AEP Texas Central Company), as servicer (incorporated by reference to exhibit 99.3 included as an exhibit to the Sponsor’s Form 8-K dated March 14, 2012).

10.4 Amended and Restated Intercreditor Agreement, dated as of March 14, 2012, by and among AEP Texas Inc. (as successor by merger to AEP Texas Central Company), AEP Texas Central Transition Funding LLC, U.S. Bank National Association, AEP Texas Central Transition Funding II LLC, U.S. Bank National Association and AEP Texas Central Transition Funding III LLC, each in their respective capacities  (incorporated by reference to exhibit 99.4 included as an exhibit to the Sponsor’s Form 8-K dated March 14, 2012).

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|        |
|--------|
|        |  |  |
|   |   | AEP Texas Central Transition Funding III LLC |
|   |   | (Issuing Entity) |
|   |   |   |
|   |   | By: AEP Texas Inc., as Servicer |
|   |   |   |
|   |   | /s/ Julia A. Sloat |
|   |   | Julia A. Sloat |
|   |   | Treasurer and Senior Officer in Charge of the Servicing Function |

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31.1 Certification.

33.1 Report on assessment of compliance with servicing criteria for asset-backed issuers for AEP Texas Inc., as servicer.

33.2  Report on assessment of compliance with servicing criteria for asset-backed issuers for U.S. Bank National Association, as Indenture Trustee. 

34.1 Attestation report on assessment of compliance with servicing criteria for asset-backed securities of PricewaterhouseCoopers LLP on behalf of AEP Texas Inc., as servicer.

34.2 Attestation report on assessment of compliance with servicing criteria for asset-backed securities of Ernst & Young LLP on behalf of U.S. Bank National Association, as Indenture Trustee.

35.1 Servicer compliance statement of AEP Texas Inc., as servicer.