EFFECTS OF REGULATION

12 Months Ended

Dec. 31, 2024

Regulatory Assets and Liabilities Disclosure [Abstract]

EFFECTS OF REGULATION

EFFECTS OF REGULATION

The disclosures in this note apply to all Registrants unless indicated otherwise.

Regulated Generating Units (Applies to AEP, PSO and SWEPCo)

Compliance with extensive environmental regulations requires significant capital investment in environmental monitoring, installation of pollution control equipment, emission fees, disposal costs and permits. Management continuously evaluates cost estimates of complying with these regulations in balance with reliability and other factors, which has resulted in, and in the future may result in, a proposal to retire generating facilities earlier than their currently estimated useful lives.

Management is seeking or will seek regulatory recovery, as necessary, for any net book value remaining when the plants are retired. To the extent the net book value of these generation assets is not deemed recoverable, it could reduce future net income and cash flows and impact financial condition.

Regulated Generating Units that have been Retired

SWEPCo

In December 2021, the Dolet Hills Power Station was retired. As part of the 2020 Texas Base Rate Case, the PUCT authorized recovery of SWEPCo’s Texas jurisdictional share of the Dolet Hills Power Station through 2046, but denied SWEPCo the ability to earn a return on this investment resulting in a disallowance of $12 million in 2021. See “2020 Texas Base Rate Case” section of Note 4 for additional information. As part of the 2021 Arkansas Base Rate Case, the APSC authorized recovery of SWEPCo’s Arkansas jurisdictional share of the Dolet Hills Power Station through 2027, but denied SWEPCo the ability to earn a return on this investment resulting in a disallowance of $2 million in the second quarter of 2022. Also, the APSC did not rule on the prudency of the early retirement of the Dolet Hills Power Station, which will be addressed in a future proceeding. As part of the 2020 Louisiana Base Rate Case, the LPSC authorized the recovery of SWEPCo’s Louisiana share of the Dolet Hills Power Station, through a separate rider, through 2032, but did not rule on the prudency of the early retirement of the plant, which is being addressed in a separate proceeding. In April 2024, the LPSC approved a unanimous settlement agreement filed by SWEPCo, LPSC staff and certain intervenors that resolved the prudency of the retirement of the Dolet Hills Power Station and resulted in a disallowance of $14 million in the first quarter of 2024.

In March 2023, the Pirkey Plant was retired. As part of the 2020 Louisiana Base Rate Case, the LPSC authorized the recovery of SWEPCo’s Louisiana jurisdictional share of the Pirkey Plant, through a separate rider, through 2032. As part of the 2021 Arkansas Base Rate Case, the APSC granted SWEPCo regulatory asset treatment. SWEPCo will request recovery including a weighted average cost of capital carrying charge through a future proceeding. In July 2023, Texas ALJs issued a PFD that concluded the decision to retire the Pirkey Plant was prudent. In September 2023, the PUCT rejected the ALJs’ July 2023 PFD. In the open meeting, the commissioners expressed their concerns that the analysis in support of SWEPCo’s decision to retire the Pirkey Plant was not robust enough and that SWEPCo should have re-evaluated the decision following Winter Storm Uri. The treatment of the cost of recovery of the Pirkey Plant is expected to be addressed in a future rate case. As of December 31, 2024, the Texas jurisdictional share of the net book value of the Pirkey Plant was $69 million. To the extent any portion of the Texas jurisdictional share of the net book value of the Pirkey Plant is not recoverable, it could reduce future net income and cash flows and impact financial condition.

Regulated Generating Units to be Retired

PSO

In 2014, PSO received final approval from the Federal EPA to close Northeastern Plant, Unit 3, in 2026. The plant was originally scheduled to close in 2040. As a result of the early retirement date, PSO revised the useful life of Northeastern Plant, Unit 3, to the projected retirement date of 2026 and the incremental depreciation is being deferred as a regulatory asset. Following the 2024 Oklahoma Base Rate Case, PSO continues to recover Northeastern Plant, Unit 3 through 2040.

SWEPCo

In November 2020, management announced that it will cease using coal at the Welsh Plant in 2028. As a result of the announcement, SWEPCo began recording a regulatory asset for accelerated depreciation. In December 2024, SWEPCo filed an application for a Certificate of Convenience and Necessity (CCN) with the APSC, LPSC and PUCT to convert Welsh Plant, Units 1 and 3 to natural gas in 2028 and 2027, respectively.

The table below summarizes the net book value including CWIP, before cost of removal and materials and supplies, as of December 31, 2024, of generating facilities planned for early retirement:

Plant	Net Book Value		Accelerated Depreciation Regulatory Asset		Cost of Removal Regulatory Liability			Projected Retirement Date		Current Authorized Recovery Period	Annual Depreciation (a)
	(dollars in millions)
Northeastern Plant, Unit 3	$	101.7	$	189.0	$	21.0	(b)	2026		(c)	$	16.2
Welsh Plant, Units 1 and 3	324.3		168.6		57.6		(d)	2028	(e)	(f)	43.6

(a)Represents the amount of annual depreciation that has been collected from customers over the prior 12-month period.

(b)Includes Northeastern Plant, Unit 4, which was retired in 2016. Removal of Northeastern Plant, Unit 4, will be performed with the removal of Northeastern Plant, Unit 3, after retirement.

(c)Northeastern Plant, Unit 3 is currently being recovered through 2040.

(d)Includes Welsh Plant, Unit 2, which was retired in 2016. Removal of Welsh Plant, Unit 2, will be performed with the removal of Welsh Plant, Units 1 and 3, after retirement.

(e)Represents projected retirement date of coal assets.

(f)Unit 1 is being recovered through 2027 in the Louisiana jurisdiction and through 2037 in the Arkansas and Texas jurisdictions. Unit 3 is being recovered through 2032 in the Louisiana jurisdiction and through 2042 in the Arkansas and Texas jurisdictions.

Dolet Hills Power Station and Related Fuel Operations (Applies to AEP and SWEPCo)

In December 2021, the Dolet Hills Power Station was retired. While in operation, DHLC provided 100% of the fuel supply to Dolet Hills Power Station. The remaining book value of Dolet Hills Power Station non-fuel related assets are recoverable by SWEPCo through rate riders. As of December 31, 2024, SWEPCo’s share of the net investment in the Dolet Hills Power Station was $74 million, including materials and supplies, net of cost of removal collected in rates. Fuel costs incurred by the Dolet Hills Power Station are recoverable by SWEPCo through active fuel clauses and are subject to prudency determinations by the various commissions. After closure of the DHLC mining operations and the Dolet Hills Power Station, additional reclamation and other land-related costs incurred by DHLC and Oxbow will continue to be billed to SWEPCo and included in existing fuel clauses. As of December 31, 2024, SWEPCo had a net under-recovered fuel balance of $22 million, inclusive of costs related to the Dolet Hills Power Station billed by DHLC, but excluding impacts of the February 2021 severe winter weather event.

In March 2021, the LPSC issued an order allowing SWEPCo to recover up to $20 million of fuel costs in 2021 and defer approximately $35 million of additional costs with a recovery period to be determined at a later date. In August 2022, the LPSC staff filed testimony recommending fuel disallowances of up to $55 million, including denial of recovery of the $35 million deferral, with refunds to customers over five years. In February 2024, an ALJ issued a final recommendation which included a proposed $55 million refund to customers and the denial of recovery of the $35 million deferral. SWEPCo filed a motion to present oral arguments with the LPSC to dispute the ALJ’s recommendations. In April 2024, the LPSC approved a unanimous settlement agreement filed by SWEPCo, LPSC staff and certain intervenors that resolved the fuel recovery dispute and resulted in a fuel disallowance of $11 million. The remaining $24 million regulatory asset balance will be recovered over three years with interest.

In March 2021, the APSC approved fuel rates that provide recovery of $20 million for the Arkansas share of the 2021 Dolet Hills Power Station fuel costs over five years through the existing fuel clause.

In September 2023, the PUCT approved an unopposed settlement agreement that provides recovery of $48 million of Oxbow mine related costs through 2035.

If any of these costs are not recoverable or customer refunds are required, it could reduce future net income and cash flows and impact financial condition.

Pirkey Plant and Related Fuel Operations (Applies to AEP and SWEPCo)

In March 2023, the Pirkey Plant was retired. SWEPCo is recovering, or will seek recovery of, the remaining net book value of Pirkey Plant non-fuel costs. As of December 31, 2024, SWEPCo’s share of the net investment in the Pirkey Plant was $188 million, including materials and supplies, net of cost of removal. See the “Regulated Generating Units that have been Retired” section above for additional information. Fuel costs are recovered through active fuel clauses and are subject to prudency determinations by the various commissions. As of March 31, 2023, SWEPCo fuel deliveries, including billings of all fixed costs, from Sabine ceased. Additionally, as of December 31, 2024, SWEPCo had a net under-recovered fuel balance of $22 million, inclusive of costs related to the Pirkey Plant billed by Sabine, but excluding impacts of the February 2021 severe winter weather event. Remaining operational, reclamation and other land-related costs incurred by Sabine will be billed to SWEPCo and included in existing fuel clauses.

In July 2023, the LPSC ordered that a separate proceeding be established to review the prudence of the decision to retire the Pirkey Plant, including the costs included in fuel for years starting in 2019 and after. In November 2024, the LPSC staff submitted testimony recommending a $5 million fuel disallowance and a lower return on the remaining Pirkey Plant balance or

recovery of the retired plant balance at a rate less than SWEPCo’s weighted average cost of capital. In December 2024, SWEPCo filed its rebuttal testimony explaining why there should be no disallowance. A hearing is scheduled for March 2025.

In September 2023, the PUCT approved an unopposed settlement agreement that provides recovery of $33 million of Sabine related fuel costs through 2035. In June 2024, SWEPCo filed a fuel reconciliation with the PUCT for its retail operation in Texas for the period of January 2022 through December 2023. In January 2025, intervenors filed testimony recommending a disallowance for fuel costs ranging from $2 million and $25 million related to SWEPCo’s decision to retire the Pirkey Plant, management of fuel inventory and SWEPCo’s energy price offers in SPP. Also, in January 2025, the PUCT staff filed testimony agreeing with SWEPCo’s filed fuel reconciliation. In February 2025, SWEPCo filed rebuttal testimony explaining why there should be no disallowance.

If any of these costs are not recoverable or customer refunds are required, it could reduce future net income and cash flows and impact financial condition.

Regulatory Assets and Liabilities

Regulatory assets and liabilities are comprised of the following items:

	AEP
	December 31,				Remaining Recovery Period
	2024		2023
Current Regulatory Assets	(in millions)
Under-recovered Fuel Costs - earns a return	$	245.7	$	357.4	1 year
Under-recovered Fuel Costs - does not earn a return	116.0		62.7		1 year
Unrecovered Winter Storm Fuel Costs - earns a return (a)	84.2		93.9		1 year
Total Current Regulatory Assets	$	445.9	$	514.0
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	168.6	$	125.6
Pirkey Plant Accelerated Depreciation	121.3		114.4
Storm-Related Costs	51.0		—
Unrecovered Winter Storm Fuel Costs (a)	33.5		60.1
Other Regulatory Assets Pending Final Regulatory Approval	20.7		49.8
Total Regulatory Assets Currently Earning a Return	395.1		349.9
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs (b)	357.4		25.9
Storm-Related Costs	300.8		408.9
NOLC - Costs (c)	92.8		—
2024-2025 Virginia Under-Earnings	78.4		—
Other Regulatory Assets Pending Final Regulatory Approval	86.3		52.6
Total Regulatory Assets Currently Not Earning a Return	915.7		487.4
Total Regulatory Assets Pending Final Regulatory Approval	1,310.8		837.3
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant (d)	661.2		664.2		22 years
Long-term Under-recovered Fuel Costs - West Virginia	283.8		291.5		10 years
Plant Retirement Costs - Asset Retirement Obligation Costs	111.0		110.8		16 years
Storm-Related Costs	106.7		170.9		7 years
Fuel Mine Closure Costs - Texas	70.6		74.3		11 years
Pirkey Plant Accelerated Depreciation - Louisiana	66.4		65.8		8 years
Unrecovered Winter Storm Fuel Costs (a)	62.8		99.3		3 years
Kentucky Deferred Purchased Power Expenses	45.0		43.5		3 years
Rockport Plant Dry Sorbent Injection System and Selective Catalytic Reduction	37.3		46.9		4 years
Texas Mobile Temporary Emergency Electric Energy Facilities Rider	32.6		33.4		2 years
Environmental Control Projects	29.1		31.4		16 years
Ohio Basic Transmission Cost Rider	26.1		42.2		2 years
Plant Retirement Costs - Unrecovered Plant, Dolet Hills Power Station, Louisiana	19.0		40.8		8 years
Long-term Under-recovered Fuel Costs - Virginia	—		107.0
Other Regulatory Assets Approved for Recovery	159.9		124.9		various
Total Regulatory Assets Currently Earning a Return	1,711.5		1,946.9
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	974.2		1,054.1		12 years
Plant Retirement Costs - Asset Retirement Obligation Costs	360.1		330.2		18 years
Unamortized Loss on Reacquired Debt	90.9		97.2		24 years
Storm-Related Costs	66.5		38.5		7 years
Fuel and Purchased Power Adjustment Rider	57.4		68.3		2 years
Unrealized Loss on Forward Commitments	53.3		131.4		8 years
OVEC Purchased Power	52.0		50.1		2 years
Plant Retirement Costs - Unrecovered Plant, Texas	44.5		48.7		22 years
Cook Plant Nuclear Refueling Outage Levelization	43.0		55.7		3 years
Smart Grid Costs	33.8		26.3		2 years
Postemployment Benefits	27.9		30.6		3 years
Ohio Enhanced Service Reliability Plan	26.2		35.3		2 years
2020-2022 Virginia Triennial Under Earnings	26.0		37.4		3 years
Ohio Distribution Investment Rider	11.0		35.3		2 years
Other Regulatory Assets Approved for Recovery	240.1		269.1		various
Total Regulatory Assets Currently Not Earning a Return	2,106.9		2,308.2
Total Regulatory Assets Approved for Recovery	3,818.4		4,255.1
Total Noncurrent Regulatory Assets	$	5,129.2	$	5,092.4

(a)See “February 2021 Severe Winter Weather Impacts in SPP” section of Note 4 for additional information.

(b)See “Federal EPA’s Revised CCR Rule” section of Note 6 for additional information.

(c)In the second quarter of 2024, requests seeking to establish a recovery mechanism for these regulatory assets were filed in Indiana, Oklahoma and Texas. In Indiana and Oklahoma, certain intervenors have challenged the recovery, or have proposed ratemaking treatment that would offset the recovery, of the regulatory assets. In the third quarter of 2024, PUCT Staff and certain intervenors in Texas requested a hearing and direct testimony was filed by SWEPCo in October 2024. In the fourth quarter of 2024, hearings on the merits were held in Indiana and Oklahoma. In January 2025, a second hearing on the merits in Oklahoma was held. A hearing is scheduled for the first quarter of 2025 in Texas.

(d)Northeastern Plant, Unit 3 is approved for recovery through 2040, but expected to retire in 2026. PSO records a regulatory asset for accelerated depreciation. See “Regulated Generating Units to be Retired” section above for additional information.

	AEP
	December 31,				Remaining
	2024		2023		Refund Period
Current Regulatory Liabilities	(in millions)
Over-recovered Fuel Costs - pays a return	$	21.6	$	3.3	1 year
Over-recovered Fuel Costs - does not pay a return	31.9		23.2		1 year
Total Current Regulatory Liabilities	$	53.5	$	26.5
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Income Taxes, Net (a)	$	176.0	$	103.1
Total Regulatory Liabilities Currently Paying a Return	176.0		103.1
Regulatory Liabilities Currently Not Paying a Return
FERC 2021 Transmission Formula Rate Challenge Refunds	131.3		103.1
Other Regulatory Liabilities Pending Final Regulatory Determination	14.7		1.7
Total Regulatory Liabilities Currently Not Paying a Return	146.0		104.8
Total Regulatory Liabilities Pending Final Regulatory Determination	322.0		207.9
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	3,828.0		3,563.5		(b)
Income Taxes, Net (a)	1,622.1		2,179.7		(c)
Rockport Plant, Unit 2 Accelerated Depreciation for Leasehold Improvements	35.9		44.9		4 years
Other Regulatory Liabilities Approved for Payment	40.4		35.0		various
Total Regulatory Liabilities Currently Paying a Return	5,526.4		5,823.1
Regulatory Liabilities Currently Not Paying a Return
Excess Nuclear Decommissioning Funding	2,137.3		1,721.9		(d)
Deferred Investment Tax Credits	65.1		154.5		29 years
Demand Side Management	52.6		31.3		2 years
Spent Nuclear Fuel	50.4		47.6		(d)
2017-2019 Virginia Triennial Revenue Provision	35.2		37.1		25 years
Peak Demand Reduction/Energy Efficiency	32.8		26.4		2 years
Over-recovered Fuel Costs - Ohio	32.1		26.1		8 years
Other Regulatory Liabilities Approved for Payment	90.1		106.5		various
Total Regulatory Liabilities Currently Not Paying a Return	2,495.6		2,151.4
Total Regulatory Liabilities Approved for Payment	8,022.0		7,974.5
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	8,344.0	$	8,182.4

(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(b)Relieved as removal costs are incurred.

(c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $192 million and $228 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 10 years.

(d)Relieved when plant is decommissioned.

	AEP Texas
	December 31,				Remaining Recovery Period
Regulatory Assets:	2024		2023
	(in millions)
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Storm-Related Costs	$	41.3	$	—
Total Regulatory Assets Currently Earning a Return	41.3		—
Regulatory Assets Currently Not Earning a Return
Deferred Pension and OPEB Costs	15.6		—
Storm-Related Costs	13.1		37.7
Line Inspection Costs	5.8		5.7
Other Regulatory Assets Pending Final Regulatory Approval	1.3		20.9
Total Regulatory Assets Currently Not Earning a Return	35.8		64.3
Total Regulatory Assets Pending Final Regulatory Approval	77.1		64.3
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Texas Mobile Temporary Emergency Electric Energy Facilities Rider	32.6		33.4		2 years
Meter Replacement Costs	5.8		9.4		2 years
Other Regulatory Assets Approved for Recovery	22.4		0.7		various
Total Regulatory Assets Currently Earning a Return	60.8		43.5
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	177.5		183.2		12 years
Texas Transmission Cost Recovery Factor	14.2		—		2 years
Peak Demand Reduction/Energy Efficiency	9.2		9.2		2 years
Other Regulatory Assets Approved for Recovery	14.8		15.1		various
Total Regulatory Assets Currently Not Earning a Return	215.7		207.5
Total Regulatory Assets Approved for Recovery	276.5		251.0
Total Noncurrent Regulatory Assets	$	353.6	$	315.3

	AEP Texas
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2024		2023
	(in millions)
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Income Taxes, Net (a)	$	—	$	13.0
Total Regulatory Liabilities Currently Paying a Return	—		13.0
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	—		1.5
Total Regulatory Liabilities Currently Not Paying a Return	—		1.5
Total Regulatory Liabilities Pending Final Regulatory Determination	—		14.5
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	844.0		797.1		(b)
Income Taxes, Net (a)	409.4		412.0		(c)
Other Regulatory Liabilities Approved for Payment	4.8		3.8		various
Total Regulatory Liabilities Currently Paying a Return	1,258.2		1,212.9
Regulatory Liabilities Currently Not Paying a Return
Transition and Restoration Charges	21.6		26.6		5 years
Other Regulatory Liabilities Approved for Payment	5.6		7.4		various
Total Regulatory Liabilities Currently Not Paying a Return	27.2		34.0
Total Regulatory Liabilities Approved for Payment	1,285.4		1,246.9
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,285.4	$	1,261.4

(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(b)Relieved as removal costs are incurred.

(c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $22 million for the year ended December 31, 2024. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 5 years.

	AEPTCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2024		2023
	(in millions)
Noncurrent Regulatory Assets
Regulatory assets approved for recovery:
Regulatory Assets Currently Not Earning a Return
PJM/SPP Annual Formula Rate True-up	$	0.4	$	3.1	2 years
Total Regulatory Assets Approved for Recovery	0.4		3.1
Total Noncurrent Regulatory Assets	$	0.4	$	3.1

	AEPTCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2024		2023
	(in millions)
Noncurrent Regulatory Liabilities
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Income Taxes, Net (a)	$	8.8	$	8.7
Total Regulatory Liabilities Pending Final Regulatory Determination	8.8		8.7
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	582.3		466.3		(b)
Income Taxes, Net (a)	287.3		308.7		(c)
Total Regulatory Liabilities Approved for Payment	869.6		775.0
Total Noncurrent Regulatory Liabilities	$	878.4	$	783.7

(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(b)Relieved as removal costs are incurred.

(c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $9 million and $13 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 4 years.

	APCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2024		2023
	(in millions)
Current Regulatory Assets
Under-recovered Fuel Costs, Virginia - earns a return	$	148.1	$	147.4	1 year
Under-recovered Fuel Costs, West Virginia - does not earn a return	—		8.0		1 year
Total Current Regulatory Assets	$	148.1	$	155.4
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	1.1	$	0.6
Total Regulatory Assets Currently Earning a Return	1.1		0.6
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs (a)	282.1		25.9
Storm-Related Costs - West Virginia	144.2		91.5
2024-2025 Virginia Under-Earnings	78.4		—
Pension Settlement	17.8		—
Other Regulatory Assets Pending Final Regulatory Approval	11.9		7.5
Total Regulatory Assets Currently Not Earning a Return	534.4		124.9
Total Regulatory Assets Pending Final Regulatory Approval	535.5		125.5
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Long-term Under-recovered Fuel Costs - West Virginia	154.1		154.2		10 years
Plant Retirement Costs - Unrecovered Plant	68.0		72.0		19 years
Long-term Under-recovered Fuel Costs - Virginia	—		107.0
Other Regulatory Assets Approved for Recovery	5.2		7.1		various
Total Regulatory Assets Currently Earning a Return	227.3		340.3
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs	307.5		324.7		15 years
Pension and OPEB Funded Status	107.9		115.8		12 years
Unamortized Loss on Reacquired Debt	67.0		70.7		21 years
2020-2022 Virginia Triennial Under-Earnings	26.0		37.4		3 years
Peak Demand Reduction/Energy Efficiency	14.2		15.0		2 years
Postemployment Benefits	13.2		14.9		3 years
Vegetation Management Program - West Virginia	11.9		12.9		2 years
Virginia Generation Rate Adjustment Clause	11.6		10.9		2 years
Excess SO2 Allowance Inventory - Virginia	10.5		11.8		8 years
Virginia Transmission Rate Adjustment Clause	3.4		25.5		2 years
Unrealized Loss on Forward Commitments	—		21.9
Other Regulatory Assets Approved for Recovery	30.0		27.8		various
Total Regulatory Assets Currently Not Earning a Return	603.2		689.3
Total Regulatory Assets Approved for Recovery	830.5		1,029.6
Total Noncurrent Regulatory Assets	$	1,366.0	$	1,155.1

(a)See “Federal EPA’s Revised CCR Rule” section of Note 6 for additional information.

	APCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2024		2023
	(in millions)
Current Regulatory Liabilities
Over-recovered Fuel Costs, West Virginia - does not pay a return	$	21.6	$	—	1 year
Total Current Regulatory Liabilities	$	21.6	$	—
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Income Taxes, Net (a)	$	(6.3)	$	7.9
Total Regulatory Liabilities Currently Paying a Return	(6.3)		7.9
Regulatory Liabilities Currently Not Paying a Return
FERC 2021 Transmission Formula Rate Challenge Refunds	24.9		19.7
Total Regulatory Liabilities Currently Not Paying a Return	24.9		19.7
Total Regulatory Liabilities Pending Final Regulatory Determination	18.6		27.6
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	805.6		759.6		(b)
Income Taxes, Net (a)	219.3		240.1		(c)
Deferred Investment Tax Credits	—		0.3
Total Regulatory Liabilities Currently Paying a Return	1,024.9		1,000.0
Regulatory Liabilities Currently Not Paying a Return
2017-2019 Virginia Triennial Revenue Provision	35.2		37.1		25 years
Virginia Transmission Rate Adjustment Clause	10.2		1.5		2 years
Energy Efficiency Rate Adjustment Clause - Virginia	10.0		3.2		2 years
Other Regulatory Liabilities Approved for Payment	16.9		12.5		various
Total Regulatory Liabilities Currently Not Paying a Return	72.3		54.3
Total Regulatory Liabilities Approved for Payment	1,097.2		1,054.3
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,115.8	$	1,081.9

(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(b)Relieved as removal costs are incurred.

(c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $12 million and $35 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 4 years.

	I&M
	December 31,				Remaining Recovery Period
Regulatory Assets:	2024		2023
	(in millions)
Current Regulatory Assets
Under-recovered Fuel Costs, Michigan - earns a return	$	10.6	$	14.8	1 year
Total Current Regulatory Assets	$	10.6	$	14.8
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	6.4	$	0.2
Total Regulatory Assets Currently Earning a Return	6.4		0.2
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs - Asset Retirement Obligation Costs (a)	74.0		—
NOLC Costs - Indiana (b)	26.7		—
Storm-Related Costs - Indiana	6.3		29.7
Other Regulatory Assets Pending Final Regulatory Approval	1.6		3.3
Total Regulatory Assets Currently Not Earning a Return	108.6		33.0
Total Regulatory Assets Pending Final Regulatory Approval	115.0		33.2
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant	98.0		122.5		4 years
Rockport Plant Dry Sorbent Injection System and Selective Catalytic Reduction	37.3		46.9		4 years
Cook Plant Uprate Project	20.5		22.9		9 years
Deferred Cook Plant Life Cycle Management Project Costs - Michigan, FERC	10.1		11.1		10 years
Cook Plant Turbine - Indiana	7.8		8.4		14 years
Other Regulatory Assets Approved for Recovery	21.1		17.5		various
Total Regulatory Assets Currently Earning a Return	194.8		229.3
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	108.8		—		(c)
Cook Plant Nuclear Refueling Outage Levelization	43.0		55.7		3 years
Storm-Related Costs - Indiana	20.2		3.4		4 years
Pension and OPEB Funded Status	14.6		25.4		12 years
Excess SO2 Allowance Inventory - Indiana	11.9		14.8		4 years
Unamortized Loss on Reacquired Debt	10.9		11.8		24 years
Postemployment Benefits	7.3		7.0		3 years
Environmental Cost Rider - Indiana	1.4		8.1		2 years
Other Regulatory Assets Approved for Recovery	20.2		17.6		various
Total Regulatory Assets Currently Not Earning a Return	238.3		143.8
Total Regulatory Assets Approved for Recovery	433.1		373.1
Total Noncurrent Regulatory Assets	$	548.1	$	406.3

(a)See “Federal EPA’s Revised CCR Rule” section of Note 6 for additional information.

(b)In the second quarter of 2024, a request seeking to establish a recovery mechanism for these regulatory assets were filed in Indiana. Certain intervenors have challenged the recovery, or have proposed ratemaking treatment that would offset the recovery, of the regulatory assets. In the fourth quarter of 2024, a hearing on the merits was held in Indiana.

(c)Recovered over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $12 million for the year ended December 31, 2024 and is to be refunded over 4 years.

	I&M
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2024		2023
	(in millions)
Current Regulatory Liabilities
Over-recovered Fuel Costs, Indiana - does not pay a return	$	10.3	$	23.2	1 year
Total Current Regulatory Liabilities	$	10.3	$	23.2
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Income Taxes, Net (a) (b)	$	—	$	(103.0)
Total Regulatory Liabilities Currently Paying a Return	—		(103.0)
Regulatory Liabilities Currently Not Paying a Return
FERC 2021 Transmission Formula Rate Challenge Refunds	28.9		22.8
Cook Plant PTC Deferral - Michigan	14.5		—
Total Regulatory Liabilities Currently Not Paying a Return	43.4		22.8
Total Regulatory Liabilities Pending Final Regulatory Determination	43.4		(80.2)
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	174.2		168.1		(c)
Renewable Energy Surcharge - Michigan	24.3		26.6		2 years
Income Taxes, Net (a)	—		116.8		(d)
Other Regulatory Liabilities Approved for Payment	0.1		0.1		various
Total Regulatory Liabilities Currently Paying a Return	198.6		311.6
Regulatory Liabilities Currently Not Paying a Return
Excess Nuclear Decommissioning Funding	2,137.3		1,721.9		(e)
Spent Nuclear Fuel	50.4		47.6		(e)
Demand Side Management - Indiana	33.0		16.7		2 years
Deferred Investment Tax Credits	13.8		15.8		26 years
PJM Costs and Off-system Sales Margin Sharing - Indiana	2.0		14.1		1 year
Other Regulatory Liabilities Approved for Payment	2.3		4.8		various
Total Regulatory Liabilities Currently Not Paying a Return	2,238.8		1,820.9
Total Regulatory Liabilities Approved for Payment	2,437.4		2,132.5
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	2,480.8	$	2,052.3

(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(b)Represents an income tax related regulatory asset, which is presented within net regulatory liabilities on the balance sheet.

(c)Relieved as removal costs are incurred.

(d)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $25 million for the year ended December 31, 2023.

(e)Relieved when plant is decommissioned.

	OPCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2024		2023
	(in millions)
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	0.4	$	—
Total Regulatory Assets Currently Earning a Return	0.4		—
Regulatory Assets Currently Not Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	0.1		—
Total Regulatory Assets Pending Final Regulatory Approval	0.1		23.6
Total Regulatory Assets Pending Final Regulatory Approval	0.5		23.6
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Basic Transmission Cost Rider	26.1		42.2		2 years
Ohio Distribution Decoupling	—		1.8
Total Regulatory Assets Currently Earning a Return	26.1		44.0
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	134.0		147.1		12 years
OVEC Purchased Power	52.0		50.1		2 years
Unrealized Loss on Forward Commitments	47.6		50.8		8 years
Smart Grid Costs	33.8		26.3		2 years
Storm-Related Costs	28.6		30.9		2 years
Ohio Enhanced Service Reliability Plan	26.2		35.3		2 years
Bad Debt Rider	13.7		0.7		2 years
Ohio Distribution Investment Rider	11.0		35.3		2 years
Other Regulatory Assets Approved for Recovery	5.6		10.9		various
Total Regulatory Assets Currently Not Earning a Return	352.5		387.4
Total Regulatory Assets Approved for Recovery	378.6		431.4
Total Noncurrent Regulatory Assets	$	379.1	$	455.0

	OPCo
	December 31,				Remaining Refund Period
	2024		2023
Regulatory Liabilities:	(in millions)
Noncurrent Regulatory Liabilities
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
FERC 2021 Transmission Formula Rate Challenge Refunds	$	72.7	$	57.0
Other Regulatory Liabilities Pending Final Regulatory Determination	0.2		0.2
Total Regulatory Liabilities Pending Final Regulatory Determination	72.9		57.2
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	480.0		475.5		(a)
Income Taxes, Net (b)	367.6		408.2		(c)
Other Regulatory Liabilities Approved for Payment	4.0		—
Total Regulatory Liabilities Currently Paying a Return	851.6		883.7
Regulatory Liabilities Currently Not Paying a Return
Over-recovered Fuel Costs	32.1		26.1		8 years
Peak Demand Reduction/Energy Efficiency	22.8		23.2		2 years
Other Regulatory Liabilities Approved for Payment	8.3		13.4		various
Total Regulatory Liabilities Currently Not Paying a Return	63.2		62.7
Total Regulatory Liabilities Approved for Payment	914.8		946.4
Total Noncurrent Regulatory Liabilities	$	987.7	$	1,003.6

(a)Relieved as removal costs are incurred.

(b)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $100 million and $132 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 4 years.

	PSO
	December 31,				Remaining Recovery Period
	2024		2023
Regulatory Assets:	(in millions)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	64.7	$	118.3	1 year
Total Current Regulatory Assets	$	64.7	$	118.3
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
NOLC - Costs (a)	$	16.4	$	—
Storm-Related Costs	4.9		88.5
Other Regulatory Assets Pending Final Regulatory Approval	9.0		0.2
Total Regulatory Assets Pending Final Regulatory Approval	30.3		88.7
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Plant Retirement Costs - Unrecovered Plant (b)	274.0		254.1		22 years
Storm-Related Costs	106.7		26.2		7 years
Environmental Control Projects	21.2		22.5		16 years
Meter Replacement Costs	10.1		14.1		3 years
Other Regulatory Assets Approved for Recovery	13.4		8.4		various
Total Regulatory Assets Currently Earning a Return	425.4		325.3
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	57.6		62.6		12 years
Unrealized Loss on Forward Commitments	3.9		29.9		2 years
Other Regulatory Assets Approved for Recovery	10.6		16.2		various
Total Regulatory Assets Currently Not Earning a Return	72.1		108.7
Total Regulatory Assets Approved for Recovery	497.5		434.0
Total Noncurrent Regulatory Assets	$	527.8	$	522.7

(a)In the second quarter of 2024, a request seeking to establish a recovery mechanism for these regulatory assets was filed in Oklahoma. Certain intervenors have challenged the recovery, or have proposed ratemaking treatment that would offset the recovery, of the regulatory assets. In the fourth quarter of 2024 and in January 2025 hearings on the merits were held.

(b)Northeastern Plant, Unit 3 is approved for recovery through 2040, but expected to retire in 2026. PSO records a regulatory asset for accelerated depreciation. See “Regulated Generating Units to be Retired” section above for additional information.

	PSO
	December 31,				Remaining Refund Period
	2024		2023
Regulatory Liabilities:	(in millions)
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
FERC 2021 Transmission Formula Rate Challenge Refunds	$	1.6	$	1.2
Total Regulatory Liabilities Pending Final Regulatory Determination	1.6		1.2
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	323.6		317.5		(b)
Income Taxes, Net (a)	318.0		395.7		(c)
Total Regulatory Liabilities Currently Paying a Return	641.6		713.2
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	46.2		47.2		12 years
Other Regulatory Liabilities Approved for Payment	0.3		4.0		various
Total Regulatory Liabilities Currently Not Paying a Return	46.5		51.2
Total Regulatory Liabilities Approved for Payment	688.1		764.4
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	689.7	$	765.6

(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(b)Relieved as removal costs are incurred.

(c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $46 million and $51 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 10 year.

	SWEPCo
	December 31,				Remaining Recovery Period
	2024		2023
Regulatory Assets:	(in millions)
Current Regulatory Assets
Unrecovered Winter Storm Fuel Costs - earns a return (a)	$	84.2	$	93.9	1 year
Under-recovered Fuel Costs - earns a return (b)	22.4		76.9		1 year
Total Current Regulatory Assets	$	106.6	$	170.8
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	168.6	$	125.6
Pirkey Plant Accelerated Depreciation	121.3		114.4
Unrecovered Winter Storm Fuel Costs (a)	33.5		60.1
Dolet Hills Power Station Accelerated Depreciation (c)	11.8		12.0
Other Regulatory Assets Pending Final Regulatory Approval	10.8		26.0
Total Regulatory Assets Currently Earning a Return	346.0		338.1
Regulatory Assets Currently Not Earning a Return
NOLC - Costs (d)	49.6		—
Storm-Related Costs - Louisiana, Texas	39.9		56.0
Other Regulatory Assets Pending Final Regulatory Approval	18.7		13.7
Total Regulatory Assets Currently Not Earning a Return	108.2		69.7
Total Regulatory Assets Pending Final Regulatory Approval	454.2		407.8
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Fuel Mine Closure Costs - Texas	70.6		74.3		11 years
Pirkey Plant Accelerated Depreciation - Louisiana	66.4		65.8		8 years
Unrecovered Winter Storm Fuel Costs (b)	62.8		99.3		3 years
Plant Retirement Costs - Unrecovered Plant, Arkansas	40.2		44.4		18 years
Dolet Hills Power Station Fuel Costs - Louisiana	21.7		—		3 years
Plant Retirement Costs - Unrecovered Plant, Dolet Hills Power Station - Louisiana	19.0		40.8		8 years
Storm-Related Costs - Louisiana (e)	—		144.7
Other Regulatory Assets Approved for Recovery	12.6		13.8		various
Total Regulatory Assets Currently Earning a Return	293.3		483.1
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	93.2		109.2		12 years
Plant Retirement Costs - Unrecovered Plant, Texas	44.5		48.7		22 years
Plant Retirement Costs - Unrecovered Plant, Arkansas	12.8		17.3		3 years
Unrealized Loss on Forward Commitments	1.2		15.4		3 years
North Central Wind Rider	—		20.2
Other Regulatory Assets Approved for Recovery	22.1		30.1		various
Total Regulatory Assets Currently Not Earning a Return	173.8		240.9
Total Regulatory Assets Approved for Recovery	467.1		724.0
Total Noncurrent Regulatory Assets	$	921.3	$	1,131.8

(a)See “February 2021 Severe Winter Weather Impacts in SPP” section of Note 4 for additional information.

(b)2024 amount related to Arkansas, Louisiana and Texas jurisdictions. 2023 amount related to Arkansas and Texas jurisdictions.

(c)Amounts include the FERC jurisdiction.

(d)In the second quarter of 2024, a request seeking to establish a recovery mechanism for the Texas jurisdictional share of these regulatory assets was filed in Texas. In the third quarter of 2024, PUCT Staff and certain intervenors in Texas requested a hearing and direct testimony was filed by SWEPCo in October 2024. A hearing is scheduled for the first quarter of 2025 in Texas.

(e)In July 2024, the LPSC approved SWEPCo’s securitization of storm costs for Hurricanes Laura and Delta, as well as a storm reserve. See “2021 Louisiana Storm Cost Filing” section of Note 4 for additional information.

	SWEPCo
	December 31,				Remaining Refund Period
	2024		2023
Regulatory Liabilities:	(in millions)
Current Regulatory Liabilities
Over-recovered Fuel Costs - pays a return (a)	$	21.6	$	3.3	1 year
Total Current Regulatory Liabilities	$	21.6	$	3.3
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Income Taxes, Net (b)	$	7.0	$	7.0
Total Regulatory Liabilities Pending Final Regulatory Determination	7.0		7.0
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	456.6		443.2		(c)
Income Taxes, Net (b)	127.5		292.4		(d)
Other Regulatory Liabilities Approved for Payment	7.3		4.4		various
Total Regulatory Liabilities Currently Paying a Return	591.4		740.0
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Approved for Payment	12.4		9.1		various
Total Regulatory Liabilities Currently Not Paying a Return	12.4		9.1
Total Regulatory Liabilities Approved for Payment	603.8		749.1
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	610.8	$	756.1

(a)2024 amount related to Texas jurisdiction. 2023 amount related to Louisiana jurisdiction.

(b)Predominately pays a return due to the inclusion of Excess ADIT in rate base.

(c)Relieved as removal costs are incurred.

(d)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets.