INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Effective Income Tax Rate Reconciliation

The ETR for each of the Registrants are included in the following tables:


	Three Months Ended March 31, 2026
	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO			SWEPCo
U.S. Federal Statutory Rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%		21.0	%
Increase (decrease) due to:
State and Local Income Taxes, Net	1.1	%	0.6	%	2.5	%	(0.2)	%	3.8	%	1.0	%	3.2	%		(37.5)	%
Tax Reform Excess ADIT Reversal	(3.2)	%	(1.5)	%	0.2	%	(4.7)	%	(2.4)	%	(11.4)	%	1.7	%		(25.0)	%

Production and Investment Tax Credits	(10.6)	%	(0.1)	%	—	%	(3.5)	%	(7.9)	%	—	%	135.0	%	(a)	(562.5)	%	(b)
Reversal of Origination Flow-Through	0.8	%	0.1	%	0.2	%	2.0	%	1.4	%	0.6	%	(0.1)	%		—	%
AFUDC Equity	(1.6)	%	(1.6)	%	(1.8)	%	(0.9)	%	(0.7)	%	(1.8)	%	0.4	%		(12.5)	%


Flow-Through of CAMT	(2.5)	%	—	%	—	%	(8.5)	%	—	%	—	%	—	%		—	%
Other	(0.4)	%	(0.1)	%	0.1	%	0.1	%	(0.3)	%	(0.1)	%	(1.2)	%		4.0	%
Effective Income Tax Rate	4.6	%	18.4	%	22.2	%	5.3	%	14.9	%	9.3	%	160.0	%	(a)	(612.5)	%	(b)

(a)The effective tax rate of PSO reflects a tax benefit. The resulting positive rate is attributable to the recognition of tax benefits in a period of pretax book losses.

(b)The effective tax rate of SWEPCo reflects a tax benefit. The resulting negative rate is attributable to the recognition of tax benefits that are greater than the pretax book income.


	Three Months Ended March 31, 2025
	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
U.S. Federal Statutory Rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) due to:
State and Local Income Taxes, Net	1.2	%	0.2	%	2.6	%	1.1	%	3.4	%	1.9	%	2.9	%	(1.4)	%
Tax Reform Excess ADIT Reversal	(2.6)	%	(3.7)	%	0.2	%	(2.5)	%	(3.6)	%	(4.1)	%	(3.6)	%	(3.1)	%

Production and Investment Tax Credits	(6.5)	%	(0.1)	%	—	%	—	%	(11.7)	%	—	%	(27.6)	%	(31.2)	%
Reversal of Origination Flow-Through	0.4	%	0.1	%	0.2	%	(0.7)	%	1.9	%	0.9	%	0.1	%	0.7	%
AFUDC Equity	(1.2)	%	(1.0)	%	(1.7)	%	(0.6)	%	(0.5)	%	(1.9)	%	(0.5)	%	(1.4)	%

Flow-Through of CAMT	0.4	%	—	%	—	%	1.6	%	—	%	—	%	—	%	—	%
Other	0.9	%	(0.1)	%	—	%	(0.1)	%	(0.1)	%	0.3	%	(0.1)	%	0.7	%
Effective Income Tax Rate	13.6	%	16.4	%	22.3	%	19.8	%	10.4	%	18.1	%	(7.8)	%	(14.7)	%

Schedule of Amount of Income Taxes Paid or Received


	Three Months Ended March 31,
Cash Flow Information	2026		2025
	(in millions)
Cash Paid for:
Interest, Net of Capitalized Amounts	$	450	$	350


Noncash Investing and Financing Activities:
Acquisitions Under Finance Leases	24		8
Construction Expenditures Included in Current Liabilities as of March 31,	1,434		1,041
Contribution in Aid of Construction Advances in Current Assets as of March 31,	61		—


Acquisition of Nuclear Fuel Included in Current Liabilities as of March 31,	9		—

The following tables show the amount of income taxes paid or (received) on an interim basis, for each Registrant:


Three Months Ended March 31, 2026	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Income Taxes Paid/(Received)	$	—	$	(10)	$	2	$	(30)	$	22	$	(40)	$	31	$	31
Transfer Credits	(14)		—		—		(4)		—		—		(6)		(3)
Total Cash Paid/(Received)	$	(14)	$	(10)	$	2	$	(34)	$	22	$	(40)	$	25	$	28


Three Months Ended March 31, 2025	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Income Taxes Paid/(Received)	$	7	$	—	$	—	$	—	$	5	$	—	$	—	$	—
Transfer Credits	(17)		—		—		—		—		—		(9)		(9)
Total Cash Paid/(Received)	$	(10)	$	—	$	—	$	—	$	5	$	—	$	(9)	$	(9)