RATE MATTERS (Tables)

9 Months Ended

Sep. 30, 2025

Regulated Operations [Abstract]

Regulated Generating Units to be Retired

The table below summarizes the net book value including CWIP, before cost of removal and materials and supplies, as of September 30, 2025, of generating facilities planned for 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	$	73.9	$	212.8	$	21.2	(b)	2026		(c)	$	16.1
Welsh Plant, Units 1 and 3	278.8		206.2		57.6		(d)	2028	(e)	(f)	46.5

(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.

Schedule of Regulatory Assets

	AEP
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	206.2	$	168.6
Pirkey Plant Accelerated Depreciation	134.1		121.3
Storm-Related Costs	53.5		51.0
Unrecovered Winter Storm Fuel Costs (a)	47.2		70.7
Unified Tracking Mechanism Deferred Costs	39.2		—
Other Regulatory Assets Pending Final Regulatory Approval	30.9		20.7
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (b)	386.5		357.4
Storm-Related Costs (c)	202.2		300.8
2024-2025 Virginia Biennial Under-Earnings	166.0		78.4
NOLC Costs (d)	95.9		92.8
Other Regulatory Assets Pending Final Regulatory Approval	130.8		86.3
Total Regulatory Assets Pending Final Regulatory Approval	$	1,492.5	$	1,348.0

(a)Includes $37 million of unrecovered winter storm fuel costs recorded as a current regulatory asset as of September 30, 2025 and December 31, 2024, respectively. See “February 2021 Severe Winter Weather Impacts in SPP” section below for additional information.

(b)See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.

(c)Includes $40 million of West Virginia jurisdictional storm operation and maintenance costs as of September 30, 2025 that are subject to a future final securitization financing order from the WVPSC.

(d)Approved for collection through rates, subject to refund, for the Oklahoma and SWEPCo-Texas jurisdictions.

	AEP Texas
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Storm-Related Costs	$	41.3	$	41.3
Unified Tracking Mechanism Deferred Costs	39.2		—
System Resiliency Plan Deferred Costs	8.6		—
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	34.4		13.1
Deferred Pension and OPEB Costs	24.7		15.6
Line Inspection Costs	5.8		5.8
Other Regulatory Assets Pending Final Regulatory Approval	2.9		1.3
Total Regulatory Assets Pending Final Regulatory Approval	$	156.9	$	77.1

	APCo
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	1.5	$	1.1
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (a)	305.8		282.1
2024-2025 Virginia Biennial Under-Earnings	166.0		78.4
Storm-Related Costs – West Virginia (b)	49.6		144.2
Pension Settlement	16.7		17.8
Virginia Retail Consumables Deferral	12.3		—
Other Regulatory Assets Pending Final Regulatory Approval	20.7		11.9
Total Regulatory Assets Pending Final Regulatory Approval	$	572.6	$	535.5

(a)See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.

(b)Includes $40 million of West Virginia jurisdictional storm operation and maintenance costs as of September 30, 2025 that are subject to a future final securitization financing order from the WVPSC.

	I&M
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	3.3	$	6.4
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (a)	77.4		74.0
Storm-Related Costs – Indiana	29.3		6.3
NOLC Costs – Indiana (b)	—		26.7
Other Regulatory Assets Pending Final Regulatory Approval	1.7		1.6
Total Regulatory Assets Pending Final Regulatory Approval	$	111.7	$	115.0

(a)See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.

(b)In the first quarter of 2025, the IURC approved the stand-alone treatment of NOLCs.

	OPCo
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	0.9	$	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	$	0.9	$	0.5

	PSO
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
NOLC Costs (a)	$	25.4	$	16.4
Storm-Related Costs	22.4		4.9
Generation PBA and Delayed Retirement Deferral	7.7		—
Pension Settlement	7.4		7.8
Other Regulatory Assets Pending Final Regulatory Approval	7.8		1.2
Total Regulatory Assets Pending Final Regulatory Approval	$	70.7	$	30.3

(a)Approved for collection through rates, subject to refund.

	SWEPCo
	September 30,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	206.2	$	168.6
Pirkey Plant Accelerated Depreciation	134.1		121.3
Unrecovered Winter Storm Fuel Costs (a)	47.2		70.7
Dolet Hills Power Station Accelerated Depreciation (b)	12.4		11.8
Storm-Related Costs	12.2		9.7
Other Regulatory Assets Pending Final Regulatory Approval	4.3		1.1
Regulatory Assets Currently Not Earning a Return
NOLC Costs (c)	70.5		49.6
Storm-Related Costs - Louisiana, Texas	44.9		39.9
Other Regulatory Assets Pending Final Regulatory Approval	19.5		18.7
Total Regulatory Assets Pending Final Regulatory Approval	$	551.3	$	491.4

(a)Includes $37 million of unrecovered winter storm fuel costs recorded as a current regulatory asset as of September 30, 2025 and December 31, 2024, respectively. See “February 2021 Severe Winter Weather Impacts in SPP” section below for additional information.

(b)Amounts include the FERC jurisdiction.

(c)Approved for collection through rates, subject to refund, for Texas jurisdiction.

Regulatory Asset, Proposed Securitization Items

Proposed Securitized Items	APCo		WPCo		Total
	(in millions)
Undepreciated Utility Plant Balances of Amos, Mitchell and Mountaineer (as of December 31, 2022)	$	1,145.5	$	558.7	$	1,704.2
ENEC Under-Recovery Regulatory Assets	166.6		245.8		412.4
Forecasted Undepreciated CCR and ELG Investments of Amos, Mitchell and Mountaineer (as of November 30, 2024)	87.6		149.2		236.8
Deferred Storm O&M Expense Regulatory Assets	155.0		2.9		157.9
Upfront Financing Costs	10.4		5.9		16.3
Total	$	1,565.1	$	962.5	$	2,527.6

Natural Gas Expenses and Purchases of Electricity to be Recovered from Customers

For the time period of February 9, 2021 to February 20, 2021, SWEPCo’s natural gas expenses and purchases of electricity still to be recovered from customers are shown in the table below:

Jurisdiction	September 30, 2025		December 31, 2024		Approved Recovery Period	Approved Carrying Charge
	(in millions)
Arkansas	$	25.1	$	37.2	6 years	(a)
Louisiana	47.2		70.6		(b)	(b)
Texas	49.6		72.7		5 years	1.65%
Total	$	121.9	$	180.5

(a)SWEPCo is permitted to record carrying costs on the unrecovered balance of fuel costs at a weighted-cost of capital approved by the APSC. In August 2024, the APSC issued an order that found SWEPCo had prudently incurred these costs.

(b)In March 2021, the LPSC approved a special order granting a temporary modification to the FAC and shortly after SWEPCo began recovery of its Louisiana jurisdictional share of these fuel costs based on a five-year recovery period inclusive of an interim carrying charge equal to the prime rate. The special order states the fuel and purchased power costs incurred will be subject to a future LPSC audit.

FERC Annual Revenue Requirement

The annual revenue requirement increase as a result of the transition to stand-alone treatment of NOLCs for transmission formula rates is shown in the table below:

2021		2022		2023		2024		2025		Total
(in millions)
$	78.3	$	68.5	$	60.7	$	52.1	$	48.7	$	308.3

Impact To The Statements Of Income Recorded By The Registrants

The table below summarizes the impact to the statements of income recorded by the Registrants in the second quarter of 2025:

	AEP		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Total Revenues	$	270.5	$	214.3	$	5.6	$	10.8	$	—	$	6.4	$	26.9
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	(23.9)		—		(17.2)		—		—		—		—
Other Operation	53.0		—		14.8		(6.0)		0.1		18.8		10.1
Income (Loss) Before Income Tax Expense (Benefit)	241.4		214.3		8.0		16.8		(0.1)		(12.4)		16.8
Income Tax Expense (Benefit)	(312.8)		(203.2)		(21.4)		(27.8)		—		(15.6)		(38.9)
Net Income (Loss)	554.2		417.5		29.4		44.6		(0.1)		3.2		55.7
Net Income Attributable to Noncontrolling Interest	55.2		55.2		—		—		—		—		—
Earnings (Loss) Attributable to Common Shareholder	$	499.0	$	362.3	$	29.4	$	44.6	$	(0.1)	$	3.2	$	55.7