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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Details of Income Taxes as Reported
The details of the Registrants’ Income Tax Expense (Benefit) as reported are as follows:
Year Ended December 31, 2024AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Federal:
Current$(2.8)$22.1 $75.1 $79.9 $16.6 $41.5 $(119.0)$(111.4)
Deferred(57.9)77.1 89.1 (17.8)(118.8)(2.7)20.1 (86.1)
Total Federal(60.7)99.2 164.2 62.1 (102.2)38.8 (98.9)(197.5)
State and Local:
Current(5.2)2.9 5.6 12.6 7.0 3.1 (0.2)1.8 
Deferred26.7 — 20.5 0.4 — 10.5 (0.5)11.7 
Total State and Local21.5 2.9 26.1 13.0 7.0 13.6 (0.7)13.5 
Income Tax Expense (Benefit)$(39.2)$102.1 $190.3 $75.1 $(95.2)$52.4 $(99.6)$(184.0)

Year Ended December 31, 2023AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Federal:
Current$(116.7)$19.8 $93.9 $62.2 $93.2 $46.6 $(60.8)$(88.1)
Deferred115.9 63.5 52.3 (60.5)(56.9)2.8 2.9 59.9 
Total Federal(0.8)83.3 146.2 1.7 36.3 49.4 (57.9)(28.2)
State and Local:
Current69.0 2.7 9.1 6.3 21.1 (0.3)0.3 1.0 
Deferred(13.6)(0.1)(8.2)6.2 1.2 5.2 4.0 (6.1)
Total State and Local55.4 2.6 0.9 12.5 22.3 4.9 4.3 (5.1)
Income Tax Expense (Benefit)$54.6 $85.9 $147.1 $14.2 $58.6 $54.3 $(53.6)$(33.3)

Year Ended December 31, 2022AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Federal:
Current$113.1 $29.0 $98.0 $(61.0)$43.4 $(27.0)$(3.3)$(32.3)
Deferred(88.8)41.4 46.0 86.6 (51.3)73.3 (50.5)13.4 
Total Federal24.3 70.4 144.0 25.6 (7.9)46.3 (53.8)(18.9)
State and Local:
Current26.6 2.2 8.8 (0.4)10.9 (0.3)— (1.8)
Deferred(45.5)— 16.3 (7.0)1.2 (1.8)4.6 (4.5)
Total State and Local(18.9)2.2 25.1 (7.4)12.1 (2.1)4.6 (6.3)
Income Tax Expense (Benefit)$5.4 $72.6 $169.1 $18.2 $4.2 $44.2 $(49.2)$(25.2)
Schedule of Reconciliation of Federal Statutory Tax Rate to Reported Tax Rate
The following are reconciliations for the Registrants between the federal income taxes computed by multiplying pretax income by the federal statutory tax rate and the income taxes reported:

Year Ended December 31, 2024AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Net Income$2,975.8 $420.1 $688.4 $421.7 $391.4 $305.6 $249.3 $325.7 
Less: Equity Earnings (1.4)— — — — — — (1.4)
Income Tax Expense (Benefit)(39.2)102.1 190.3 75.1 (95.2)52.4 (99.6)(184.0)
Pretax Income$2,935.2 $522.2 $878.7 $496.8 $296.2 $358.0 $149.7 $140.3 
Income Taxes on Pretax Income at Statutory Rate (21%)
$616.5 $109.7 $184.5 $104.3 $62.2 $75.2 $31.4 $29.5 
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Reversal of Origination Flow-Through20.5 0.8 2.7 6.6 4.0 2.7 0.4 2.1 
Investment Tax Credit Amortization(58.4)(0.9)— 0.1 (2.0)0.1 (1.4)(0.1)
Production Tax Credits(214.2)— — (0.3)(69.0)— (73.8)(70.7)
State and Local Income Taxes, Net16.7 2.3 20.5 10.3 5.5 10.7 (0.6)10.6 
Removal Costs(14.6)— — (11.2)(3.7)— — — 
AFUDC Equity(46.5)(9.6)(18.8)(5.3)(2.8)(4.9)(1.6)(2.8)
Tax Reform Excess ADIT Reversal(91.6)(5.1)1.6 (30.1)(15.5)(31.1)(5.5)(4.0)
Remeasurement of Excess ADIT(262.2)6.4 — — (73.3)— (48.6)(146.8)
Other(5.4)(1.5)(0.2)0.7 (0.6)(0.3)0.1 (1.8)
Income Tax Expense (Benefit)$(39.2)$102.1 $190.3 $75.1 $(95.2)$52.4 $(99.6)$(184.0)
Effective Income Tax Rate(1.3)%19.6 %21.7 %15.1 %(32.1)%14.6 %(66.5)%(131.1)%
.
Year Ended December 31, 2023AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Net Income$2,212.6 $370.4 $614.2 $294.4 $335.9 $328.2 $208.8 $223.8 
Less: Equity Earnings(1.4)— — — — — — (1.4)
Income Tax Expense (Benefit)54.6 85.9 147.1 14.2 58.6 54.3 (53.6)(33.3)
Pretax Income$2,265.8 $456.3 $761.3 $308.6 $394.5 $382.5 $155.2 $189.1 
Income Taxes on Pretax Income at Statutory Rate (21%)
$475.8 $95.8 $159.9 $64.8 $82.8 $80.3 $32.6 $39.7 
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Reversal of Origination Flow-Through26.0 0.6 2.4 9.9 6.4 2.6 0.4 2.1 
Investment Tax Credit Amortization(50.3)(0.7)— — (1.6)— (1.4)(0.2)
Production Tax Credits(175.2)— — (0.1)— — (64.3)(67.1)
State and Local Income Taxes, Net43.7 2.1 0.7 9.9 17.5 3.9 3.5 (4.0)
Removal Costs(22.0)— — (5.1)(11.8)— — — 
AFUDC Equity(39.8)(6.0)(17.5)(5.5)(2.3)(3.6)(1.8)(2.4)
Tax Reform Excess ADIT Reversal(151.1)(6.0)1.7 (17.3)(30.0)(28.9)(23.3)(12.6)
Remeasurement of Excess ADIT(46.0)— — (46.0)— — — — 
Federal Return to Provision— (0.1)— 3.4 (2.5)(0.4)0.6 1.0 
Disallowance Cost— — — — — — — 12.0 
Other(6.5)0.2 (0.1)0.2 0.1 0.4 0.1 (1.8)
Income Tax Expense (Benefit)$54.6 $85.9 $147.1 $14.2 $58.6 $54.3 $(53.6)$(33.3)
Effective Income Tax Rate2.4 %18.8 %19.3 %4.6 %14.9 %14.2 %(34.5)%(17.6)%

Year Ended December 31, 2022AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Net Income$2,305.6 $307.9 $594.2 $394.2 $324.7 $287.8 $167.6 $294.3 
Less: Equity Earnings (1.4)— — — — (0.6)— (1.4)
Income Tax Expense (Benefit)5.4 72.6 169.1 18.2 4.2 44.2 (49.2)(25.2)
Pretax Income$2,309.6 $380.5 $763.3 $412.4 $328.9 $331.4 $118.4 $267.7 
Income Taxes on Pretax Income at Statutory Rate (21%)
$485.0 $79.9 $160.3 $86.6 $69.1 $69.6 $24.9 $56.2 
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Reversal of Origination Flow-Through17.1 — — 4.7 2.9 3.0 — 2.3 
Investment Tax Credit Amortization(14.3)— — — (3.1)— (1.6)— 
Production Tax Credits(197.1)— — — — — (47.7)(57.1)
State and Local Income Taxes, Net(14.0)1.7 19.8 (5.9)9.6 (1.6)4.3 (4.9)
Removal Costs(26.5)— — (9.8)(12.4)— — — 
AFUDC Equity(29.3)(4.1)(14.8)(3.7)(2.1)(2.9)— — 
Tax Reform Excess ADIT Reversal(214.5)(5.5)— (50.9)(54.0)(27.5)(25.4)(14.8)
Federal Return to Provision(17.4)— — (2.8)(6.2)3.5 (3.7)— 
Other16.4 0.6 3.8 — 0.4 0.1 — (6.9)
Income Tax Expense (Benefit)$5.4 $72.6 $169.1 $18.2 $4.2 $44.2 $(49.2)$(25.2)
Effective Income Tax Rate0.2 %19.1 %22.2 %4.4 %1.3 %13.3 %(41.6)%(9.4)
Schedule of Deferred Tax Assets and Liabilities
The following tables show elements of the net deferred tax liability and significant temporary differences for each Registrant. Amounts presented for 2023 were recast to allocate “Deferred State Income Taxes”, and other miscellaneous temporary differences, amongst other categories to substantively reflect the elements of the net deferred tax liability.
Year Ended December 31, 2024AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Deferred Tax Assets$2,651.9 $139.1 $172.6 $379.1 $1,072.2 $186.5 $266.9 $292.8 
Deferred Tax Liabilities(12,624.3)(1,461.8)(1,451.2)(2,412.6)(2,248.0)(1,387.6)(1,197.5)(1,564.1)
Net Deferred Tax Liabilities $(9,972.4)$(1,322.7)$(1,278.6)$(2,033.5)$(1,175.8)$(1,201.1)$(930.6)$(1,271.3)
Property Related Temporary Differences$(8,939.7)$(1,364.0)$(1,416.6)$(1,784.8)$(189.9)$(1,290.9)$(1,009.8)$(1,353.1)
Amounts Due to Customers for Future Income Taxes779.6 109.3 121.4 119.0 73.1 95.6 80.7 90.2 
Securitized Assets(133.4)(26.5)— (25.7)— — — (81.1)
Regulatory Assets(966.2)(63.2)(0.2)(302.4)(49.2)(45.3)(53.1)(87.0)
Accrued Nuclear Decommissioning(1,052.2)— — — (1,052.2)— — — 
Net Operating Loss Carryforward110.3 — 2.5 0.4 — 2.9 27.8 36.5 
Valuation Allowance(35.0)— (0.1)— — — — — 
Tax Credit Carryforward197.5 4.3 — 0.1 39.6 38.5 26.5 31.7 
Operating Lease Liability145.3 12.3 0.3 16.2 13.5 13.3 27.1 35.7 
Investment in Partnership(302.1)— — (0.1)— (0.8)— (1.5)
All Other, Net223.5 5.1 14.1 (56.2)(10.7)(14.4)(29.8)57.3 
Net Deferred Tax Liabilities $(9,972.4)$(1,322.7)$(1,278.6)$(2,033.5)$(1,175.8)$(1,201.1)$(930.6)$(1,271.3)

Year Ended December 31, 2023AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Deferred Tax Assets$3,216.1 $173.6 $188.0 $472.9 $1,014.0 $271.5 $282.4 $441.5 
Deferred Tax Liabilities(12,631.8)(1,401.4)(1,335.7)(2,484.8)(2,183.9)(1,424.2)(1,113.6)(1,620.8)
Net Deferred Tax Liabilities $(9,415.7)$(1,227.8)$(1,147.7)$(2,011.9)$(1,169.9)$(1,152.7)$(831.2)$(1,179.3)
Property Related Temporary Differences$(8,809.0)$(1,274.0)$(1,304.2)$(1,805.9)$(315.6)$(1,243.2)$(941.9)$(1,306.0)
Amounts Due to Customers for Future Income Taxes898.1 109.3 120.8 128.0 103.2 104.6 99.0 142.5 
Securitized Assets(81.8)(46.7)— (32.6)— (5.3)— 2.8 
Regulatory Assets(825.9)(56.2)(0.7)(284.3)(27.7)(50.1)(67.2)(146.9)
Accrued Nuclear Decommissioning(923.5)— — — (923.5)— — — 
Net Operating Loss Carryforward155.6 — 3.9 0.2 — 2.6 25.3 47.5 
Valuation Allowance(37.4)— (0.1)— — — — (1.8)
Tax Credit Carryforward321.4 13.7 — 0.1 7.2 41.0 53.8 68.6 
Operating Lease Liability154.7 17.3 0.4 18.0 14.1 15.4 28.2 33.3 
Investment in Partnership(296.3)— — (0.1)— (0.7)— (1.5)
All Other, Net28.4 8.8 32.2 (35.3)(27.6)(17.0)(28.4)(17.8)
Net Deferred Tax Liabilities $(9,415.7)$(1,227.8)$(1,147.7)$(2,011.9)$(1,169.9)$(1,152.7)$(831.2)$(1,179.3)
Schedule of State Net Income Tax Operating Loss Carryforwards
As of December 31, 2024, AEP, OPCo, PSO, and SWEPCo have pretax state NOLC as indicated in the table below. Net of tax, the NOLCs for AEP and subsidiaries amount to $110.3 million of future tax benefit. Additionally, the amounts presented below for OPCo, PSO, and SWEPCo amount to $2.7 million, $27.8 million, and $36.1 million, respectively.:
State Net Income
 Tax Operating LossYears of
CompanyState/MunicipalityCarryforwardExpiration
(in millions)
AEPArkansas$273.9 2031-2034
AEPColorado70.5 2041
AEPIllinois53.9 2039-2041
AEPKentucky186.7 2030-2037
AEPLouisiana644.8 NA
AEP Michigan30.9 2029-2032
AEPOhio Municipal2,155.8 2025-2029
AEPOklahoma889.8 2037
AEPPennsylvania61.2 2030-2044
AEPTennessee46.1 2032-2039
OPCoOhio Municipal93.7 2025-2029
PSOOklahoma1,010.0 2037
SWEPCoArkansas273.5 2031-2034
SWEPCoLouisiana634.5 NA
NA    Not applicable.
Summary of Tax Credit Carryforwards As of December 31, 2024, the Registrants have federal tax credit carryforwards and AEP and PSO have state tax credit carryforwards as indicated in the table below.  If these credits are not utilized, federal general business tax credits will expire in the years 2036 through 2041 and state tax credits will remain available indefinitely.
Total FederalTotal State
Tax CreditTax Credit
CompanyCarryforwardCarryforward
(in millions)
AEP$197.9 40.2 
I&M37.5 — 
PSO26.5 40.2 
SWEPCo31.7 —