RATE MATTERS (Tables)

3 Months Ended

Mar. 31, 2026

Regulated Operations [Abstract]

Schedule of 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 March 31, 2026, 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	$	53	$	247	$	21	(b)	2026		(c)	$	13
Welsh Plant, Units 1 and 3	249		235		56		(d)	2028	(e)	(f)	43

(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
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	235	$	220
UTM Deferred Costs	80		56
Pirkey Plant Accelerated Depreciation	46		93
Storm-Related Costs	48		43
West Virginia MRBC Surcharge (a)	34		—
System Resiliency Plan Deferred Costs - Texas	31		17
Other Regulatory Assets Pending Final Regulatory Approval	21		6
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (b)	273		191
Plant Retirement Costs – Asset Retirement Obligation Costs (c)	263		257
2024-2025 Virginia Biennial Under-Earnings (d)	192		172
NOLC Costs (e)	87		89
Pension Settlement	24		24
Deferred Pension and OPEB Costs	32		27
Other Regulatory Assets Pending Final Regulatory Approval	134		112
Total Regulatory Assets Pending Final Regulatory Approval	$	1,500	$	1,307

(a)In April 2026, the WVPSC issued an order that affirms previously approved MRBC revenue requirements and allows APCo to perform a final true-up to recover past MRBC costs that were not reflected in MRBC surcharge rates in a timely manner. The timing of recovery through the ENEC will be determined in the Companies’ 2026 ENEC proceeding. See “West Virginia Modified Rate Base Cost (MRBC) Surcharge Update Filing” section below for additional information.

(b)In March 2026, the WVPSC issued a financing order approving a securitization that includes $40 million of West Virginia jurisdictional storm operation and maintenance costs that are subject to a final review by the WVPSC after bond pricing.

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

(d)In November 2025, the Virginia SCC issued a financing order approving a securitization that includes $141 million of storm operation and maintenance costs that are subject to a final review by the Virginia SCC after bond pricing.

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

	AEP Texas
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
UTM Deferred Costs	$	80	$	56
Storm-Related Costs	41		41
System Resiliency Plan Deferred Costs	20		17
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	34		31
Deferred Pension and OPEB Costs	32		27
Other Regulatory Assets Pending Final Regulatory Approval	9		9
Total Regulatory Assets Pending Final Regulatory Approval	$	216	$	181

	AEPTCo
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Income Taxes, Net	$	9	$	9
Total Regulatory Assets Pending Final Regulatory Approval	$	9	$	9

	APCo
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
West Virginia MRBC Surcharge (a)	$	28	$	—
Other Regulatory Assets Pending Final Regulatory Approval	2		2
Regulatory Assets Currently Not Earning a Return
2024-2025 Virginia Biennial Under-Earnings (b)	192		172
Plant Retirement Costs – Asset Retirement Obligation Costs (c)	173		169
Storm-Related Costs – West Virginia (d)	62		39
Pension Settlement	16		16
2026-2027 Virginia Biennial Under-Earnings	15		—
Virginia Corporate Alternative Minimum Tax	—		13
West Virginia Corporate Alternative Minimum Tax	—		11
Other Regulatory Assets Pending Final Regulatory Approval	29		18
Total Regulatory Assets Pending Final Regulatory Approval	$	517	$	440

(a)In April 2026, the WVPSC issued an order that affirms previously approved MRBC revenue requirements and allows APCo to perform a final true-up to recover past MRBC costs that were not reflected in MRBC surcharge rates in a timely manner. The timing of recovery through the ENEC will be determined in the Companies’ 2026 ENEC proceeding. See “West Virginia Modified Rate Base Cost (MRBC) Surcharge Update Filing” section below for additional information.

(b)In November 2025, the Virginia SCC issued a financing order approving a securitization that includes $141 million of storm operation and maintenance costs that are subject to a final review by the Virginia SCC after bond pricing.

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

(d)In March 2026, the WVPSC issued a financing order approving a securitization that includes $40 million of West Virginia jurisdictional storm operation and maintenance costs that are subject to a final review by the WVPSC after bond pricing.

	I&M
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	4	$	4
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (a)	79		78
Storm-Related Costs – Indiana	32		29
Other Regulatory Assets Pending Final Regulatory Approval	6		7
Total Regulatory Assets Pending Final Regulatory Approval	$	121	$	118

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

	PSO
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	$	32	$	25
NOLC Costs (a)	21		23
Generation PBA and Delayed Retirement Deferral	17		13
Oklahoma Senate Bill 998 Deferral	16		9
Other Regulatory Assets Pending Final Regulatory Approval	15		14
Total Regulatory Assets Pending Final Regulatory Approval	$	101	$	84

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

	SWEPCo
	March 31,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	235	$	220
Pirkey Plant Accelerated Depreciation	46		93
Retired Plant Costs - FERC	15		—
System Resiliency Plan Deferred Costs - Texas	11		1
Other Regulatory Assets Pending Final Regulatory Approval	7		2
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs - Louisiana, Texas	88		43
NOLC Costs (a)	65		66
Other Regulatory Assets Pending Final Regulatory Approval	21		20
Total Regulatory Assets Pending Final Regulatory Approval	$	488	$	445

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

Schedule of 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	$	559	$	1,704
ENEC Under-Recovery Regulatory Assets (a)	216		276		492
Forecasted Undepreciated CCR and ELG Investments of Amos, Mitchell and Mountaineer (as of November 30, 2024) (a)(b)	88		149		237
Deferred Storm Other Operation and Maintenance Expense Regulatory Assets (b)	155		3		158
Upfront Financing Costs (a)	10		6		16
Total	$	1,614	$	993	$	2,607

(a)Amounts represent estimates. The WVPSC may update these estimates prior to securitization bond marketing.

(b)In December 2025, the KPSC approved KPCo’s request for a CPCN to make investments necessary for KPCo to resume: (a) a 50% share of the Mitchell Plant ELG Project and (b) a 50% share of non-ELG capital investments. This approval by the KPSC allows KPCo to continue taking a 50% share of energy and capacity from the Mitchell Plant to serve KPCo customers beyond December 31, 2028. See “Mitchell Plant Filing for Certificate of Public Convenience and Necessity” section below for additional information. In February 2026, WPCo requested that the WVPSC grant any additional authorizations necessary to enable WPCo to reflect the holdings and impact of the December 2025 KPSC order or make a determination that no such authorizations are required. WPCo forecasted CCR and ELG amounts related to the Mitchell Plant are subject to change pending a ruling from the WVPSC on WPCo’s February 2026 filing.

Schedule of 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	$	68	$	61	$	52	$	49	$	308

Schedule of 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	$	214	$	6	$	11	$	—	$	6	$	27
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	(24)		—		(17)		—		—		—		—
Other Operation	53		—		15		(6)		—		19		10
Income (Loss) Before Income Tax Expense (Benefit)	241		214		8		17		—		(13)		17
Income Tax Expense (Benefit)	(313)		(203)		(21)		(28)		—		(16)		(39)
Net Income	554		417		29		45		—		3		56
Net Income Attributable to Noncontrolling Interest	55		55		—		—		—		—		—
Earnings Attributable to Common Shareholder	$	499	$	362	$	29	$	45	$	—	$	3	$	56