v3.26.1
RATE MATTERS (Tables)
 6 Months Ended
Jun. 30, 2026
Regulated Operations [Abstract]  
Schedule of 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 June 30, 2026, of generating facilities planned for retirement:
PlantNet Book ValueAccelerated Depreciation Regulatory AssetCost of Removal
Regulatory Liability		Projected
Retirement Date		Current Authorized
Recovery Period		Annual
Depreciation (a)
(dollars in millions)
Northeastern Plant, Unit 3$53 $251 $21 (b)2026(c)$11 
Welsh Plant, Units 1 and 3230 249 55 (d)2028(e)(f)44 

(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.
Schedule of Regulatory Assets
AEP
June 30,December 31,
20262025
 Noncurrent Regulatory Assets(in millions)
  
Regulatory Assets Currently Earning a Return  
Welsh Plant, Units 1 and 3 Accelerated Depreciation$249 $220 
UTM Deferred Costs65 56 
Pirkey Plant Accelerated Depreciation61 93 
Storm-Related Costs47 43 
System Resiliency Plan Deferred Costs - Texas46 17 
Other Regulatory Assets Pending Final Regulatory Approval5 6 
Regulatory Assets Currently Not Earning a Return 
Storm-Related Costs (a)300 191 
Plant Retirement Costs – Asset Retirement Obligation Costs (b)283 257 
NOLC Costs (c)85 89 
2024-2025 Virginia Biennial Under-Earnings (d)51 172 
Vegetation Management Costs33 — 
Deferred Pension and OPEB Costs36 27 
Other Regulatory Assets Pending Final Regulatory Approval165 136 
Total Regulatory Assets Pending Final Regulatory Approval$1,426 $1,307 

(a)In March 2026, the WVPSC issued a financing order approving a securitization that includes $40 million of West Virginia jurisdictional storm operation and maintenance costs that are subject to a final review by the WVPSC after bond pricing.
(b)Includes ARO adjustment related to the revised CCR Rule to be addressed in future regulatory proceedings. See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.
(c)Approved for collection through rates, subject to refund, for the Oklahoma and SWEPCo-Texas jurisdictions.
(d)In May 2026, APCo issued securitization bonds that included $141 million of storm operation and maintenance costs.

AEP Texas
June 30,December 31,
20262025
Noncurrent Regulatory Assets(in millions)
Regulatory Assets Currently Earning a Return
UTM Deferred Costs$65 $56 
Storm-Related Costs41 41 
System Resiliency Plan Deferred Costs23 17 
Regulatory Assets Currently Not Earning a Return  
Storm-Related Costs39 31 
Deferred Pension and OPEB Costs36 27 
UTM Deferred Costs7 — 
Other Regulatory Assets Pending Final Regulatory Approval10 9 
Total Regulatory Assets Pending Final Regulatory Approval$221 $181 
 AEPTCo
June 30,December 31,
20262025
Noncurrent Regulatory Assets(in millions)
  
Regulatory Assets Currently Earning a Return
Income Taxes, Net$9 $9 
Total Regulatory Assets Pending Final Regulatory Approval$9 $9 

APCo
June 30,December 31,
20262025
Noncurrent Regulatory Assets(in millions)
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval$2 $2 
Regulatory Assets Currently Not Earning a Return  
Plant Retirement Costs – Asset Retirement Obligation Costs (a)185 169 
Storm-Related Costs – West Virginia (b)64 39 
2024-2025 Virginia Biennial Under-Earnings (c)51 172 
Vegetation Management Costs13 — 
2026-2027 Virginia Biennial Under-Earnings18 — 
Pension Settlement16 16 
Virginia Corporate Alternative Minimum Tax— 13 
West Virginia Corporate Alternative Minimum Tax— 11 
Other Regulatory Assets Pending Final Regulatory Approval27 18 
Total Regulatory Assets Pending Final Regulatory Approval$376 $440 

(a)Includes ARO adjustment related to the revised CCR Rule to be addressed in a future regulatory proceeding. See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.
(b)In March 2026, the WVPSC issued a financing order approving a securitization that includes $40 million of West Virginia jurisdictional storm operation and maintenance costs that are subject to a final review by the WVPSC after bond pricing.
(c)In May 2026, APCo issued securitization bonds that included $141 million of storm operation and maintenance costs. See “2025 Virginia Securitization Filing” section below for additional information.
 I&M
June 30,December 31,
20262025
Noncurrent Regulatory Assets(in millions)
  
Regulatory Assets Currently Earning a Return
Other Regulatory Assets Pending Final Regulatory Approval$4 $4 
Regulatory Assets Currently Not Earning a Return  
Plant Retirement Costs – Asset Retirement Obligation Costs (a)81 78 
Storm-Related Costs – Indiana46 29 
Other Regulatory Assets Pending Final Regulatory Approval7 7 
Total Regulatory Assets Pending Final Regulatory Approval$138 $118 

(a)Includes ARO adjustment related to the revised CCR Rule to be addressed in a future regulatory proceeding. See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.
 PSO
June 30,December 31,
20262025
Noncurrent Regulatory Assets(in millions)
  
Regulatory Assets Currently Not Earning a Return  
Storm-Related Costs$34 $25 
Generation PBA and Delayed Retirement Deferral26 13 
Oklahoma Senate Bill 998 Deferral24 9 
NOLC Costs (a)19 23 
Plant Retirement Costs – Asset Retirement Obligation Costs (b)12 6 
Other Regulatory Assets Pending Final Regulatory Approval1 8 
Total Regulatory Assets Pending Final Regulatory Approval$116 $84 

(a)Approved for collection through rates, subject to refund.
(b)Includes ARO adjustment related to the revised CCR Rule to be addressed in a future regulatory proceeding. See “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.

SWEPCo
June 30,December 31,
20262025
Noncurrent Regulatory Assets(in millions)
  
Regulatory Assets Currently Earning a Return  
Welsh Plant, Units 1 and 3 Accelerated Depreciation$249 $220 
Pirkey Plant Accelerated Depreciation61 93 
System Resiliency Plan Deferred Costs - Texas23 1 
Income Taxes, Net7 — 
Other Regulatory Assets Pending Final Regulatory Approval5 2 
Regulatory Assets Currently Not Earning a Return  
Storm-Related Costs - Louisiana, Texas92 43 
NOLC Costs (a)65 66 
Other Regulatory Assets Pending Final Regulatory Approval22 20 
Total Regulatory Assets Pending Final Regulatory Approval$524 $445 

(a)Approved for collection through rates, subject to refund, for Texas jurisdiction.
Schedule of Regulatory Asset, Proposed Securitization Items
In July 2026, the WVPSC issued an order on the June 2026 settlement agreement in the Companies’ 2026 ENEC update filing, approving a modified $593 million projected August 31, 2026 ENEC under-recovery balance ($274 million related to APCo) and an overall securitization balance of $2.7 billion ($1.7 billion related to APCo) as reflected in the table below:

Eligible Costs Approved by the WVPSC for SecuritizationAPCoWPCoTotal
(in millions)
Undepreciated Utility Plant Balances of Amos, Mitchell and Mountaineer (as of December 31, 2022)$1,145 $559 $1,704 
ENEC Under-Recovery Regulatory Assets (a)274 319 593 
Forecasted Undepreciated CCR and ELG Investments of Amos, Mitchell and Mountaineer (as of November 30, 2024) (a)88 149 237 
Deferred Storm Other Operation and Maintenance Expense Regulatory Assets (a)155 3 158 
Upfront Financing Costs (a)10 6 16 
Total$1,672 $1,036 $2,708 

(a)Amounts represent estimates. The WVPSC may update these estimates prior to securitization bond marketing. In December 2025, the KPSC approved KPCo’s request for a CPCN to make investments necessary for KPCo to resume: (a) a 50% share of the Mitchell Plant ELG Project and (b) a 50% share of non-ELG capital investments. This approval by the KPSC allows KPCo to continue taking a 50% share of energy and capacity from the Mitchell Plant to serve KPCo customers beyond December 31, 2028. See “Mitchell Plant Filing for Certificate of Public Convenience and Necessity” section below for additional information. In February 2026, WPCo requested that the WVPSC grant any additional authorizations necessary to enable WPCo to reflect the holdings and impact of the December 2025 KPSC order or make a determination that no such authorizations are required. WPCo forecasted CCR and ELG amounts related to the Mitchell Plant are subject to change pending a ruling from the WVPSC on WPCo’s February 2026 filing.
Schedule of 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:
20212022202320242025Total
(in millions)
$78 $68 $61 $52 $49 $308 
Schedule of Impact To The Statements Of Income Recorded By The Registrants The table below summarizes the impact to the statements of income recorded by the Registrants in the second quarter of 2025:
AEPAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Total Revenues$270 $214 $6 $11 $— $6 $27 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation(24)— (17)— — — — 
Other Operation53 — 15 (6)— 19 10 
Income (Loss) Before Income Tax Expense (Benefit)241214817— (13)17
Income Tax Expense (Benefit)(313)(203)(21)(28)— (16)(39)
Net Income554 417 29 45 — 3 56 
Net Income Attributable to Noncontrolling Interest55 55 — — — — — 
Earnings Attributable to Common Shareholder$499 $362 $29 $45 $— $3 $56