SIGNIFICANT ACCOUNTING MATTERS (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Earnings Per Share, Basic and Diluted

The following table presents AEP’s basic and diluted EPS calculations included on the statements of income:


	Three Months Ended June 30,
	2026				2025
	(in millions, except per share data)
			$/share				$/share
Earnings Attributable to AEP Common Shareholders	$	713			$	1,226

Weighted-Average Number of Basic AEP Common Shares Outstanding	544.2		$	1.31	534.3		$	2.29
Weighted-Average Dilutive Effect	6.4		(0.01)		2.1		—
Weighted-Average Number of Diluted AEP Common Shares Outstanding	550.6		$	1.30	536.4		$	2.29


	Six Months Ended June 30,
	2026				2025
	(in millions, except per share data)
			$/share				$/share


Earnings Attributable to AEP Common Shareholders	$	1,587			$	2,026

Weighted-Average Number of Basic AEP Common Shares Outstanding	543.1		$	2.92	533.8		$	3.80
Weighted-Average Dilutive Effect	5.7		(0.03)		1.7		(0.02)
Weighted-Average Number of Diluted AEP Common Shares Outstanding	548.8		$	2.89	535.5		$	3.78

Schedule of Cash and Cash Equivalents

The following tables provide a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the balance sheets that sum to the total of the same amounts shown on the statements of cash flows:


	June 30, 2026
	AEP		AEP Texas		APCo		SWEPCo
	(in millions)
Cash and Cash Equivalents	$	375	$	—	$	4	$	2
Restricted Cash	72		13		25		14
Total Cash, Cash Equivalents and Restricted Cash	$	447	$	13	$	29	$	16


	December 31, 2025
	AEP		AEP Texas		APCo		SWEPCo
	(in millions)
Cash and Cash Equivalents	$	197	$	—	$	5	$	2
Restricted Cash	71		14		18		15
Total Cash, Cash Equivalents and Restricted Cash	$	268	$	14	$	23	$	17

Schedule of Restrictions on Cash and Cash Equivalents


	June 30, 2026
	AEP		AEP Texas		APCo		SWEPCo
	(in millions)
Cash and Cash Equivalents	$	375	$	—	$	4	$	2
Restricted Cash	72		13		25		14
Total Cash, Cash Equivalents and Restricted Cash	$	447	$	13	$	29	$	16


	December 31, 2025
	AEP		AEP Texas		APCo		SWEPCo
	(in millions)
Cash and Cash Equivalents	$	197	$	—	$	5	$	2
Restricted Cash	71		14		18		15
Total Cash, Cash Equivalents and Restricted Cash	$	268	$	14	$	23	$	17

Schedule of Cash Flow, Supplemental Disclosures


	Six Months Ended June 30,
Cash Flow Information	2026		2025
	(in millions)
Cash Paid for:
Interest, Net of Capitalized Amounts	$	1,083	$	946


Noncash Investing and Financing Activities:

Construction Expenditures Included in Current Liabilities as of June 30,	2,005		1,059
Contribution in Aid of Construction Advances in Current Assets as of June 30,	112		—


Acquisition of Nuclear Fuel Included in Current Liabilities as of June 30,	33		33

The following tables show the amount of income taxes paid or (received) on an interim basis, for each Registrant:


Six Months Ended June 30, 2026	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Income Taxes Paid/(Received)	$	18	$	(9)	$	85	$	(46)	$	106	$	(40)	$	(31)	$	(28)
Transfer Credits	(64)		—		—		(4)		(50)		—		(6)		(3)
Total Cash Paid/(Received)	$	(46)	$	(9)	$	85	$	(50)	$	56	$	(40)	$	(37)	$	(31)


Six Months Ended June 30, 2025	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Income Taxes Paid/(Received)	$	59	$	(8)	$	(21)	$	(19)	$	3	$	1	$	(4)	$	(28)
Transfer Credits	(17)		—		—		—		—		—		(9)		(9)
Total Cash Paid/(Received)	$	42	$	(8)	$	(21)	$	(19)	$	3	$	1	$	(13)	$	(37)