v3.26.1
PROPERTY, PLANT AND EQUIPMENT
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
The disclosures in this note apply to AEP and PSO.

Asset Retirement Obligations

The Registrants record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for legal obligations for asbestos removal and for the retirement of certain ash disposal facilities, wind farms, solar farms and certain coal mining facilities. AEP records ARO for the decommissioning of the Cook Plant. The table below summarizes significant changes to the Registrants’ ARO recorded in 2026 and should be read in conjunction with the Property, Plant and Equipment note within the 2025 Annual Report.

Company
ARO as of December 31, 2025
Accretion
Expense		Liabilities
Incurred		Liabilities
Settled		Revisions in
Cash Flow
Estimates (a)
ARO as of June 30, 2026
(in millions)
AEP (b)(c)(d)(e)(f)$3,712 $87 $3 $(43)$42 $3,801 
PSO (b)(e)(f)143 4 — (3)19 163 

(a)Unless discussed above, primarily related to ash ponds, landfills and mine reclamation, generally due to changes in estimated closure area, volumes and/or unit costs.
(b)Includes ARO related to ash disposal facilities.
(c)Includes ARO related to nuclear decommissioning costs for the Cook Plant.
(d)Includes ARO related to Sabine and DHLC.
(e)Includes ARO related to asbestos removal.
(f)Includes ARO related to renewables.