RATE MATTERS (Tables)

3 Months Ended

Mar. 31, 2025

Regulated Operations [Abstract]

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, 2025, of generating facilities planned for early 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	$	89.1	$	196.9	$	21.0	(b)	2026		(c)	$	16.6
Welsh Plant, Units 1 and 3	303.8		180.5		57.8		(d)	2028	(e)	(f)	44.9

(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.

Natural Gas Expenses and Purchases of Electricity to be Recovered from Customers

For the time period of February 9, 2021 to February 20, 2021, SWEPCo’s natural gas expenses and purchases of electricity still to be recovered from customers are shown in the table below:

Jurisdiction	March 31, 2025		December 31, 2024		Approved Recovery Period	Approved Carrying Charge
	(in millions)
Arkansas	$	33.1	$	37.2	6 years	(a)
Louisiana	63.2		70.6		(b)	(b)
Texas	65.2		72.7		5 years	1.65%
Total	$	161.5	$	180.5

(a)SWEPCo is permitted to record carrying costs on the unrecovered balance of fuel costs at a weighted-cost of capital approved by the APSC. In August 2024, the APSC issued an order that found SWEPCo had prudently incurred these costs.

(b)In March 2021, the LPSC approved a special order granting a temporary modification to the FAC and shortly after SWEPCo began recovery of its Louisiana jurisdictional share of these fuel costs based on a five-year recovery period inclusive of an interim carrying charge equal to the prime rate. The special order states the fuel and purchased power costs incurred will be subject to a future LPSC audit.

Schedule of Regulatory Assets

	AEP
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	180.5	$	168.6
Pirkey Plant Accelerated Depreciation	121.4		121.3
Unrecovered Winter Storm Fuel Costs (a)	63.2		70.7
Storm-Related Costs	53.5		51.0
Other Regulatory Assets Pending Final Regulatory Approval	25.1		20.7
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (b)	367.0		357.4
Storm-Related Costs	339.6		300.8
2024-2025 Virginia Biennial Under-Earnings	136.8		78.4
NOLC Costs (c)	72.0		92.8
Other Regulatory Assets Pending Final Regulatory Approval	100.5		86.3
Total Regulatory Assets Pending Final Regulatory Approval	$	1,459.6	$	1,348.0

(a)Includes $37 million of unrecovered winter storm fuel costs recorded as a current regulatory asset as of March 31, 2025 and December 31, 2024, respectively. See the “February 2021 Severe Winter Weather Impacts in SPP” section below for additional information.

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

(c)See “NOLCs in Retail Jurisdictions - IRS PLRs” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

	AEP Texas
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Storm-Related Costs	$	41.3	$	41.3
Regulatory Assets Currently Not Earning a Return
Deferred Pension and OPEB Costs	18.9		15.6
Storm-Related Costs	18.0		13.1
Line Inspection Costs	5.8		5.8
Other Regulatory Assets Pending Final Regulatory Approval	1.3		1.3
Total Regulatory Assets Pending Final Regulatory Approval	$	85.3	$	77.1

	APCo
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	1.2	$	1.1
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (a)	290.0		282.1
Storm-Related Costs – West Virginia (b)	161.1		144.2
2024-2025 Virginia Biennial Under-Earnings (b)	136.8		78.4
Pension Settlement	17.5		17.8
Other Regulatory Assets Pending Final Regulatory Approval	20.6		11.9
Total Regulatory Assets Pending Final Regulatory Approval	$	627.2	$	535.5

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

(b)In January 2025, winter storm Blair, followed by winter storms Harlow and Jett in February 2025, significantly impacted the Virginia and West Virginia service territories leading to damage to power lines, extended customer outages and extreme efforts to restore power to customers resulting in a deferral of $62 million and $21 million, respectively. Recovery of the costs relating to these storms will be addressed in a future request.

	I&M
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	6.6	$	6.4
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (a)	75.1		74.0
Storm-Related Costs – Indiana	6.4		6.3
NOLC Costs – Indiana (b)	—		26.7
Other Regulatory Assets Pending Final Regulatory Approval	1.6		1.6
Total Regulatory Assets Pending Final Regulatory Approval	$	89.7	$	115.0

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

(b)See “NOLCs in Retail Jurisdictions - IRS PLRs” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

	OPCo
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	$	0.6	$	0.4
Regulatory Assets Currently Not Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval	—		0.1
Total Regulatory Assets Pending Final Regulatory Approval	$	0.6	$	0.5

	PSO
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Not Earning a Return
NOLC Costs (a)	$	17.7	$	16.4
Storm-Related Costs	7.6		4.9
Other Regulatory Assets Pending Final Regulatory Approval	11.1		9.0
Total Regulatory Assets Pending Final Regulatory Approval	$	36.4	$	30.3

(a)See “NOLCs in Retail Jurisdictions - IRS PLRs” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

	SWEPCo
	March 31,		December 31,
	2025		2024
Noncurrent Regulatory Assets	(in millions)
Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	180.5	$	168.6
Pirkey Plant Accelerated Depreciation	121.4		121.3
Unrecovered Winter Storm Fuel Costs (a)	63.2		70.7
Dolet Hills Power Station Accelerated Depreciation (b)	11.8		11.8
Other Regulatory Assets Pending Final Regulatory Approval	17.2		10.8
Regulatory Assets Currently Not Earning a Return
NOLC Costs (c)	54.2		49.6
Storm-Related Costs - Louisiana, Texas	44.7		39.9
Other Regulatory Assets Pending Final Regulatory Approval	18.3		18.7
Total Regulatory Assets Pending Final Regulatory Approval	$	511.3	$	491.4

(a)Includes $37 million of unrecovered winter storm fuel costs recorded as a current regulatory asset as of March 31, 2025 and December 31, 2024, respectively. See the “February 2021 Severe Winter Weather Impacts in SPP” section below for additional information.

(b)Amounts include the FERC jurisdiction.

(c)See “NOLCs in Retail Jurisdictions - IRS PLRs” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

Regulatory Asset, Proposed Securitization Items

The proposed securitized items breakout for the Companies is shown in the table below:

Proposed Securitized Items	APCo		WPCo		Total
	(in millions)
Undepreciated Utility Plant Balances of Amos, Mitchell and Mountaineer (as of December 31, 2022)	$	1,145.5	$	558.7	$	1,704.2
ENEC Under-Recovery Regulatory Assets (as of February 28, 2023)	174.3		146.8		321.1
Forecasted Undepreciated CCR and ELG Investments of Amos, Mitchell and Mountaineer (as of November 30, 2024)	87.6		149.2		236.8
Deferred Storm O&M Expense Regulatory Assets (as of June 30, 2024)	115.0		2.9		117.9
Upfront Financing Costs	10.1		5.7		15.8
Total	$	1,532.5	$	863.3	$	2,395.8

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)
$	78.3	$	68.5	$	60.7	$	52.5	$	48.7	$	308.7