Voluntary Severance Program

3 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

VOLUNTARY SEVERANCE PROGRAM

In April 2024, management announced a voluntary severance program designed to achieve a reduction in the size of AEP’s workforce and help offset increasing operating expenses due to inflation and high interest costs in order to keep electricity costs affordable for customers. Approximately 7,400 of AEP’s 16,800 employees were eligible to participate in the program. Approximately 1,000 employees have chosen to take the voluntary severance package and substantially all will terminate employment in July 2024. The severance program provides two weeks of base pay for every year of service with a minimum of four weeks and a maximum of 52 weeks of base pay.

AEP recorded a charge to expense in the second quarter of 2024 related to this voluntary severance program:

	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Severance Expense Incurred	$	122.0	$	19.8	$	10.7	$	26.5	$	14.8	$	14.8	$	10.1	$	16.9

These expenses are primarily included in Other Operation and Maintenance on the statements of income and Other Current Liabilities on the balance sheets. Severance payments to participants through June 30, 2024 were immaterial. The Registrants expect to pay substantially all of the severance benefits in the third quarter of 2024. The voluntary severance program did not trigger any material curtailment or settlement accounting considerations under the accounting guidance for “Compensation - Retirement Benefits”.