INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

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, 2025	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Federal:
Current	$	(209)	$	27	$	148	$	42	$	(3)	$	27	$	(221)	$	(180)
Deferred	298		70		(173)		43		(14)		42		149		89
Total Federal	89		97		(25)		85		(17)		69		(72)		(91)
State and Local:
Current	28		4		18		2		19		(2)		—		3
Deferred	12		—		22		(1)		(1)		5		2		(7)
Total State and Local	40		4		40		1		18		3		2		(4)
Income Tax Expense (Benefit)	$	129	$	101	$	15	$	86	$	1	$	72	$	(70)	$	(95)

Year Ended December 31, 2024	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Federal:
Current	$	(3)	$	22	$	75	$	80	$	17	$	42	$	(119)	$	(112)
Deferred	(58)		77		89		(18)		(119)		(3)		20		(86)
Total Federal	(61)		99		164		62		(102)		39		(99)		(198)
State and Local:
Current	(5)		3		6		13		7		3		—		2
Deferred	27		—		20		—		—		10		(1)		12
Total State and Local	22		3		26		13		7		13		(1)		14
Income Tax Expense (Benefit)	$	(39)	$	102	$	190	$	75	$	(95)	$	52	$	(100)	$	(184)

Year Ended December 31, 2023	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Federal:
Current	$	(117)	$	20	$	94	$	62	$	94	$	46	$	(61)	$	(88)
Deferred	116		63		52		(60)		(57)		3		3		60
Total Federal	(1)		83		146		2		37		49		(58)		(28)
State and Local:
Current	69		3		9		6		21		—		—		1
Deferred	(13)		—		(8)		6		1		5		4		(6)
Total State and Local	56		3		1		12		22		5		4		(5)
Income Tax Expense (Benefit)	$	55	$	86	$	147	$	14	$	59	$	54	$	(54)	$	(33)

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,
AEP	2025					2024					2023
	(dollars in millions)
Net Income	$	3,696				$	2,976				$	2,213
Income Tax Expense (Benefit)	129					(39)					55
Pretax Income	$	3,825				$	2,937				$	2,268
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	803		21.0	%	$	617		21.0	%	$	476		21.0	%
State and Local Income Taxes, Net (a)	31			0.8	%	17			0.6	%	44			1.9	%
Tax Credits:
Production Tax Credits	(244)			(6.4)	%	(214)			(7.3)	%	(175)			(7.7)	%
Investment Tax Credits	(3)			(0.1)	%	(58)			(2.0)	%	(50)			(2.2)	%
Other Credits	(4)			(0.1)	%	(9)			(0.3)	%	(1)			—	%
Non-Taxable or Non-Deductible Items	—			—	%	(3)			(0.1)	%	1			—	%
Changes in Unrecognized Tax Benefits	3			0.1	%	7			0.2	%	(5)			(0.2)	%
Other Adjustments:
Reversal of Origination Flow-Through	18			0.5	%	22			0.7	%	24			1.1	%
Tax Reform Excess ADIT Reversal	(62)			(1.6)	%	(92)			(3.1)	%	(151)			(6.7)	%
Remeasurement of Excess ADIT	(383)			(10.0)	%	(262)			(8.9)	%	(46)			(2.0)	%
AFUDC Equity	(41)			(1.1)	%	(42)			(1.4)	%	(38)			(1.7)	%
Other	11			0.3	%	(22)			(0.7)	%	(24)			(1.1)	%
Income Tax Expense (Benefit)	$	129				$	(39)				$	55
Effective Income Tax Rate	3.4		%			(1.3)		%			2.4		%

(a)     In 2025, state taxes in West Virginia and local taxes in Ohio contributed to the majority of the tax effect. In 2024, local taxes in Ohio contributed to the majority of the tax effect. In 2023, state taxes in Indiana and West Virginia contributed to the majority of the tax effect.

	Year Ended December 31,
AEP Texas	2025					2024					2023
	(dollars in millions)
Net Income	$	488				$	420				$	370
Income Tax Expense	101					102					86
Pretax Income	$	589				$	522				$	456
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	124		21.0	%	$	110		21.0	%	$	96		21.0	%
State and Local Income Taxes, Net (a)	3			0.5	%	2			0.4	%	2			0.4	%
Tax Credits	(1)			(0.2)	%	(1)			(0.2)	%	(1)			(0.2)	%
Other Adjustments:
Tax Reform Excess ADIT Reversal	(11)			(1.9)	%	(5)			(1.0)	%	(6)			(1.3)	%
Remeasurement of Excess ADIT	—			—	%	6			1.1	%	—			—	%
AFUDC Equity	(10)			(1.7)	%	(9)			(1.7)	%	(5)			(1.1)	%
Other	(4)			(0.6)	%	(1)			—	%	—			—	%
Income Tax Expense	$	101				$	102				$	86
Effective Income Tax Rate	17.1		%			19.6		%			18.8		%

(a)     State taxes in Texas contributed to the majority of the tax effect.

	Year Ended December 31,
AEPTCo	2025					2024					2023
	(dollars in millions)
Net Income	$	1,184				$	688				$	614
Income Tax Expense	15					190					147
Pretax Income	$	1,199				$	878				$	761
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	252		21.0	%	$	185		21.0	%	$	160		21.0	%
State and Local Income Taxes, Net (a)	31			2.6	%	20			2.3	%	1			0.1	%
Other Adjustments:
Remeasurement of Excess ADIT	(256)			(21.4)	%	—			—	%	—			—	%
AFUDC Equity	(16)			(1.3)	%	(16)			(1.8)	%	(15)			(2.0)	%
Other	4			0.4	%	1			0.2	%	1			0.2	%
Income Tax Expense	$	15				$	190				$	147
Effective Income Tax Rate	1.3		%			21.7		%			19.3		%

(a)     In 2025 and 2024, state taxes in Indiana and West Virginia contributed to the majority of the tax effect. In 2023, state taxes in West Virginia contributed to the majority of the tax effect.

	Year Ended December 31,
APCo	2025					2024					2023
	(dollars in millions)
Net Income	$	457				$	422				$	294
Income Tax Expense	86					75					14
Pretax Income	$	543				$	497				$	308
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	114		21.0	%	$	104		21.0	%	$	65		21.0	%
State and Local Income Taxes, Net (a)	1			0.2	%	10			2.0	%	10			3.2	%
Tax Credits	(4)			(0.7)	%	(1)			(0.2)	%	—			—	%
Other Adjustments:
Reversal of Origination Flow-Through	6			1.1	%	5			1.0	%	9			2.9	%
Tax Reform Excess ADIT Reversal	(15)			(2.8)	%	(30)			(6.0)	%	(17)			(5.5)	%
Remeasurement of Excess ADIT	(24)			(4.4)	%	—			—	%	(46)			(14.9)	%
Removal Costs	(5)			(0.9)	%	(11)			(2.2)	%	(5)			(1.6)	%
AFUDC Equity	(2)			(0.4)	%	(2)			(0.4)	%	(4)			(1.3)	%
Flow-Through of CAMT	18			3.3	%	—			—	%	—			—	%
Other	(3)			(0.6)	%	—			(0.1)	%	2			0.8	%
Income Tax Expense	$	86				$	75				$	14
Effective Income Tax Rate	15.8		%			15.1		%			4.6		%

(a)     In 2025, state taxes in Virginia and West Virginia contributed to the majority of the tax effect. In 2024 and 2023, state taxes in West Virginia contributed to the majority of the tax effect.

	Year Ended December 31,
I&M	2025					2024					2023
	(dollars in millions)
Net Income	$	414				$	391				$	336
Income Tax Expense (Benefit)	1					(95)					59
Pretax Income	$	415				$	296				$	395
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	87		21.0	%	$	62		21.0	%	$	83		21.0	%
State and Local Income Taxes, Net (a)	14			3.4	%	6			2.0	%	18			4.6	%
Tax Credits:
Production Tax Credits	(53)			(12.8)	%	(69)			(23.3)	%	—			—	%
Other Credits	(3)			(0.7)	%	(2)			(0.7)	%	(2)			(0.5)	%
Other Adjustments:
Reversal of Origination Flow-Through	6			1.4	%	5			1.7	%	6			1.5	%
Tax Reform Excess ADIT Reversal	(10)			(2.4)	%	(16)			(5.4)	%	(33)			(8.4)	%
Remeasurement of Excess ADIT	(38)			(9.2)	%	(73)			(24.7)	%	—			—	%
Removal Costs	—			—	%	(6)			(2.0)	%	(12)			(3.0)	%
Other	(2)			(0.5)	%	(2)			(0.7)	%	(1)			(0.3)	%
Income Tax Expense (Benefit)	$	1				$	(95)				$	59
Effective Income Tax Rate	0.2		%			(32.1)		%			14.9		%

(a)     State Taxes in Indiana contributed to the majority of the tax effect.

	Year Ended December 31,
OPCo	2025					2024					2023
	(dollars in millions)
Net Income	$	328				$	306				$	328
Income Tax Expense	72					52					54
Pretax Income	$	400				$	358				$	382
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	84		21.0	%	$	75		21.0	%	$	80		21.0	%
State and Local Income Taxes, Net (a)	3			0.8	%	11			3.1	%	4			1.0	%
Other Adjustments:
Tax Reform Excess ADIT Reversal	(12)			(3.0)	%	(31)			(8.7)	%	(29)			(7.6)	%
AFUDC Equity	(4)			(1.0)	%	(4)			(1.1)	%	(3)			(0.8)	%
Other	1			0.2	%	1			0.3	%	2			0.6	%
Income Tax Expense	$	72				$	52				$	54
Effective Income Tax Rate	18.0		%			14.6		%			14.2		%

(a)     Local taxes in Ohio municipalities contributed to the majority of the tax effect.

	Year Ended December 31,
PSO	2025					2024					2023
	(dollars in millions)
Net Income	$	252				$	249				$	209
Income Tax Expense (Benefit)	(70)					(100)					(54)
Pretax Income	$	182				$	149				$	155
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	38		21.0	%	$	31		21.0	%	$	33		21.0	%
State and Local Income Taxes, Net (a)	2			1.1	%	(1)			(0.7)	%	3			1.9	%
Tax Credits:
Production Tax Credits	(88)			(48.4)	%	(74)			(49.7)	%	(64)			(41.3)	%
Other Credits	(1)			(0.5)	%	(2)			(1.3)	%	(1)			(0.6)	%
Other Adjustments:
Tax Reform Excess ADIT Reversal	(5)			(2.7)	%	(6)			(4.0)	%	(23)			(14.8)	%
Remeasurement of Excess ADIT	(14)			(7.7)	%	(49)			(32.9)	%	—			—	%
Other	(2)			(1.3)	%	1			1.1	%	(2)			(0.7)	%
Income Tax Expense (Benefit)	$	(70)				$	(100)				$	(54)
Effective Income Tax Rate	(38.5)		%			(66.5)		%			(34.5)		%

(a)     State taxes in Oklahoma contributed to the majority of the tax effect.

	Year Ended December 31,
SWEPCo	2025					2024					2023
	(dollars in millions)
Net Income	$	391				$	326				$	224
Income Tax Expense (Benefit)	(95)					(184)					(33)
Pretax Income	$	296				$	142				$	191
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. Federal Statutory Tax Rate	$	62		21.0	%	$	30		21.0	%	$	40		21.0	%
State and Local Income Taxes, Net (a)	(3)			(1.0)	%	11			7.7	%	(4)			(2.1)	%
Tax Credits
Production Tax Credits	(98)			(33.1)	%	(71)			(50.0)	%	(67)			(35.1)	%
Non-Taxable or Non-Deductible Items	—			—	%	(1)			(0.7)	%	—			—	%
Other Adjustments:
Tax Reform Excess ADIT Reversal	(6)			(2.0)	%	(4)			(2.8)	%	(13)			(6.8)	%
Remeasurement of Excess ADIT	(46)			(15.5)	%	(147)			(103.5)	%	—			—	%
Disallowance Cost	—			—	%	—			—	%	12			6.3	%
Other	(4)			(1.5)	%	(2)			(1.3)	%	(1)			(0.6)	%
Income Tax Expense (Benefit)	$	(95)				$	(184)				$	(33)
Effective Income Tax Rate	(32.1)		%			(129.6)		%			(17.3)		%

(a)     State taxes in Louisiana contributed to the majority of the tax effect.

Schedule of the Amount of Income Taxes Paid or (Received) on an Annual basis

The following tables show the amount of income taxes paid or (received) on an annual basis, disaggregated by federal and state jurisdictions, for each Registrant:

Year Ended December 31, 2025	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(dollars in millions)
Federal	$	70	$	46	$	191	$	88	$	23	$	62	$	(158)	$	(91)
State and Local:
IN	$	16	$	—	$	11	$	—	$	14	$	—	$	—	$	—
MI	—		—		—		—		4		—		—		—
TX	5		4		—		—		—		—		—		1
WV	8		—		11		17		1		—		—		—
All Other	4		—		1		—		1		—		—		—
Total To/(From) Tax Authority	$	103	$	50	$	214	$	105	$	43	$	62	$	(158)	$	(90)
Transfer Credits	(187)		—		—		—		—		—		(90)		(97)
Total Cash Paid/(Received)	$	(84)	$	50	$	214	$	105	$	43	$	62	$	(248)	$	(187)

Year Ended December 31, 2024	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(dollars in millions)
Federal	$	100	$	11	$	43	$	48	$	17	$	19	$	(15)	$	(15)
State and Local:
IN	$	7	$	—	$	—	$	—	$	7	$	—	$	—	$	—
WV	9		—		—		—		—		—		—		—
All Other	17		—		—		—		—		—		—		—
Total To/(From) Tax Authority	$	133	$	11	$	43	$	48	$	24	$	19	$	(15)	$	(15)
Transfer Credits	(202)		—		—		—		—		—		(96)		(89)
Total Cash Paid/(Received)	$	(69)	$	11	$	43	$	48	$	24	$	19	$	(111)	$	(104)

Year Ended December 31, 2023	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(dollars in millions)
Federal	$	38	$	12	$	87	$	47	$	93	$	39	$	(11)	$	(41)
State and Local:
IN	$	16	$	—	$	—	$	—	$	16	$	—	$	—	$	—
OH	10		—		1		—		—		—		—		—
TX	4		—		—		—		—		—		—		—
All Other	10		—		—		—		—		—		—		—
Total To/(From) Tax Authority	$	78	$	12	$	88	$	47	$	109	$	39	$	(11)	$	(41)
Transfer Credits	(102)		—		—		—		—		—		(35)		(41)
Total Cash Paid/(Received)	$	(24)	$	12	$	88	$	47	$	109	$	39	$	(46)	$	(82)

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:

Year Ended December 31, 2025	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(dollars in millions)
Deferred Tax Assets	$	2,786	$	131	$	170	$	411	$	1,160	$	171	$	287	$	328
Deferred Tax Liabilities	(13,737)		(1,561)		(1,651)		(2,541)		(2,379)		(1,439)		(1,400)		(1,786)
Net Deferred Tax Liabilities	$	(10,951)	$	(1,430)	$	(1,481)	$	(2,130)	$	(1,219)	$	(1,268)	$	(1,113)	$	(1,458)
Property Related Temporary Differences	$	(9,456)	$	(1,442)	$	(1,526)	$	(1,881)	$	(49)	$	(1,333)	$	(1,195)	$	(1,477)
Amounts Due to Customers for Future Income Taxes	641		105		44		109		57		92		74		74
Securitized Assets	(211)		(28)		—		(19)		—		—		—		(50)
Regulatory Assets	(902)		(73)		(4)		(308)		(46)		(48)		(60)		(119)
Accrued Nuclear Decommissioning	(1,180)		—		—		—		(1,180)		—		—		—
Net Operating Loss Carryforward	155		—		—		—		—		—		44		45
Valuation Allowance	(49)		—		—		—		—		—		—		(3)
Tax Credit Carryforward	148		10		—		33		—		43		33		—
Operating Lease Liability	166		12		1		23		14		11		32		50
Investment in Partnership	(306)		—		—		—		—		(1)		—		(1)
All Other, Net	43		(14)		4		(87)		(15)		(32)		(41)		23
Net Deferred Tax Liabilities	$	(10,951)	$	(1,430)	$	(1,481)	$	(2,130)	$	(1,219)	$	(1,268)	$	(1,113)	$	(1,458)

Year Ended December 31, 2024	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(dollars in millions)
Deferred Tax Assets	$	2,652	$	139	$	173	$	379	$	1,072	$	187	$	267	$	293
Deferred Tax Liabilities	(12,624)		(1,462)		(1,452)		(2,413)		(2,248)		(1,388)		(1,198)		(1,564)
Net Deferred Tax Liabilities	$	(9,972)	$	(1,323)	$	(1,279)	$	(2,034)	$	(1,176)	$	(1,201)	$	(931)	$	(1,271)
Property Related Temporary Differences	$	(8,940)	$	(1,364)	$	(1,417)	$	(1,785)	$	(190)	$	(1,291)	$	(1,010)	$	(1,353)
Amounts Due to Customers for Future Income Taxes	780		109		121		119		73		96		81		90
Securitized Assets	(133)		(27)		—		(26)		—		—		—		(81)
Regulatory Assets	(966)		(63)		—		(302)		(49)		(45)		(53)		(87)
Accrued Nuclear Decommissioning	(1,052)		—		—		—		(1,052)		—		—		—
Net Operating Loss Carryforward	110		—		2		—		—		3		28		36
Valuation Allowance	(35)		—		—		—		—		—		—		—
Tax Credit Carryforward	198		4		—		—		40		39		27		32
Operating Lease Liability	145		12		—		16		14		13		27		36
Investment in Partnership	(302)		—		—		—		—		(1)		—		(2)
All Other, Net	223		6		15		(56)		(12)		(15)		(31)		58
Net Deferred Tax Liabilities	$	(9,972)	$	(1,323)	$	(1,279)	$	(2,034)	$	(1,176)	$	(1,201)	$	(931)	$	(1,271)

Schedule of State Income Tax Net Operating Loss Deferred Tax Assets

As of December 31, 2025, AEP, PSO and SWEPCo have state income tax net operating loss deferred tax assets as indicated in the table below:

		Future State
		Income		Years of
Company	State/Municipality	Tax Benefit		Expiration
AEP	Arkansas	$	15	2031	-	2035
AEP	Illinois	5		2039	-	2041
AEP	Kentucky	11		2030	-	2037
AEP	Louisiana	41		Indefinite
AEP	Michigan	1		2029	-	2032
AEP	Ohio Municipal	62		2026	-	2030
AEP	Oklahoma	54		2037
AEP	Tennessee	4		2032	-	2040
PSO	Oklahoma	55		2037
SWEPCo	Arkansas	15		2031	-	2035
SWEPCo	Louisiana	41		Indefinite

Schedule of Summary of Tax Credit Carryforwards

As of December 31, 2025, AEP and PSO have state tax credit carryforwards as indicated in the table below, which have an indefinite carryforward period.

	Total Federal		Total State
	Tax Credit		Tax Credit
Company	Carryforward		Carryforward
	(dollars in millions)
AEP	$	108	$	41
AEP Texas	10		—
APCo	28		—
OPCo	43		—
PSO	—		41