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INCOME TAXES
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The disclosures in this note apply to all Registrants unless indicated otherwise.

Effective Tax Rates (ETR)

The Registrants’ interim ETR reflect the estimated annual ETR for 2025 and 2024, adjusted for tax expense associated with certain discrete items.

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

Three Months Ended March 31, 2025
AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
U.S. Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (decrease) due to:
State and Local Income Taxes, Net1.2 %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)%
PTCs and ITCs(6.5)%(0.1)%— %— %(11.7)%— %(27.6)%(31.2)%
Reversal of Origination Flow-Through0.4 %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 CAMT0.4 %— %— %1.6 %— %— %— %— %
Other
0.9 %(0.1)%— %(0.1)%(0.1)%0.3 %(0.1)%0.7 %
Effective Income Tax Rate13.6 %16.4 %22.3 %19.8 %10.4 %18.1 %(7.8)%(14.7)%

Three Months Ended March 31, 2024
AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
U.S. Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (decrease) due to:
State and Local Income Taxes, Net2.1 %0.2 %2.6 %2.4 %3.9 %1.0 %3.7 %1.7 %
Tax Reform Excess ADIT Reversal(2.3)%(1.3)%0.2 %(13.4)%(0.5)%(6.0)%(2.0)%4.6 %
Remeasurement of Excess ADIT(29.7)%— %— %— %(58.2)%— %(263.3)%(224.7)%
PTCs and ITCs(6.8)%(0.2)%— %(0.1)%(1.1)%— %(49.6)%(23.8)%
Reversal of Origination Flow-Through— %0.1 %0.3 %(0.3)%(2.8)%0.6 %0.2 %0.6 %
AFUDC Equity(1.2)%(1.5)%(1.8)%(0.4)%(0.7)%(1.0)%(1.3)%(1.3)%
Discrete Tax Adjustments0.2 %— %— %— %— %— %0.9 %1.3 %
Other
0.2 %0.5 %— %0.1 %— %0.2 %1.2 %(0.8)%
Effective Income Tax Rate(16.5)%18.8 %22.3 %9.3 %(38.4)%15.8 %(289.2)%(221.4)%

Federal and State Income Tax Audit Status

AEP is not currently under IRS audit and the statute of limitations (SOL) for the IRS to examine AEP and subsidiaries originally filed federal return has expired for tax years prior to 2017. The SOL for years 2017-2020 is set to expire May 31, 2025.

AEP and subsidiaries file income tax returns in various state and local jurisdictions. AEP and subsidiaries are not currently under any state and local income tax examinations. Generally, the SOL have expired for tax years prior to 2017. In addition, management is monitoring and continues to evaluate the potential impact of federal legislation and corresponding state conformity.