v3.26.1
INCOME TAXES (Tables)
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The ETR for each of the Registrants are included in the following tables:

Three Months Ended June 30, 2026
AEPAEP TexasAEPTCoAPCoI&MOPCoPSO SWEPCo
U.S. Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (Decrease) due to:
State and Local Income Taxes, Net3.5 %0.6 %2.4 %(0.5)%3.8 %1.0 %3.0 %(7.7)%
Tax Reform Excess ADIT Reversal(3.2)%(1.5)%0.2 %(5.4)%(2.6)%(11.3)%(6.7)%(4.1)%
Production and Investment Tax Credits(13.0)%(0.1)%— %(13.8)%(13.7)%— %(156.3)%(110.8)%
Reversal of Origination Flow-Through0.8 %0.1 %0.2 %2.3 %1.5 %0.6 %0.3 %1.1 %
AFUDC Equity(1.6)%(1.6)%(1.9)%(1.0)%(0.8)%(1.8)%(1.4)%(2.7)%
Other(1.0)%0.2 %(0.1)%(0.6)%(0.7)%0.4 %(5.4)%(1.6)%
Effective Income Tax Rate6.5 %18.7 %21.8 %2.0 %8.5 %9.9 %(145.5)%(104.8)%


Three Months Ended June 30, 2025
AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
U.S. Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (Decrease) due to:
State and Local Income Taxes, Net0.6 %0.9 %2.5 %0.8 %1.1 %1.0 %3.2 %(2.8)%
Tax Reform Excess ADIT Reversal(0.4)%(2.1)%0.6 %(2.0)%2.8 %(2.7)%(2.7)%2.5 %
Remeasurement of Excess ADIT(37.0)%— %(54.3)%(26.0)%(40.8)%— %(41.4)%(79.4)%
Production and Investment Tax Credits(6.7)%(0.1)%— %(0.1)%(18.7)%— %(69.3)%(40.7)%
Reversal of Origination Flow-Through— %0.1 %0.2 %(4.1)%1.8 %0.6 %0.3 %0.9 %
AFUDC Equity(1.0)%(1.2)%(0.8)%(0.9)%(0.8)%(1.5)%(1.4)%(1.5)%
Flow-Through of CAMT(0.3)%— %— %(3.4)%— %— %— %— %
Other(0.4)%0.1 %— %— %— %(0.1)%0.2 %(0.9)%
Effective Income Tax Rate(24.2)%18.7 %(30.8)%(14.7)%(33.6)%18.3 %(90.1)%(100.9)%
Six Months Ended June 30, 2026
AEPAEP TexasAEPTCoAPCoI&MOPCoPSO SWEPCo
U.S. Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (Decrease) due to:
State and Local Income Taxes, Net2.2 %0.6 %2.4 %(0.2)%3.8 %1.0 %4.6 %(12.8)%
Tax Reform Excess ADIT Reversal(3.2)%(1.5)%0.2 %(4.9)%(2.5)%(11.3)%68.6 %(6.8)%
Production and Investment Tax Credits(11.7)%(0.1)%— %(5.6)%(10.1)%— %2,286.2 %(a)(186.0)%
Reversal of Origination Flow-Through0.8 %0.1 %0.2 %2.0 %1.4 %0.6 %(2.9)%1.8 %
AFUDC Equity(1.6)%(1.6)%(1.9)%(0.9)%(0.7)%(1.8)%14.2 %(4.4)%
Flow-Through of CAMT(1.4)%— %— %(6.8)%— %— %— %— %
Other(0.6)%— %0.1 %0.1 %(0.4)%0.1 %8.3 %1.2 %
Effective Income Tax Rate5.5 %18.5 %22.0 %4.7 %12.5 %9.6 %2,400.0 %(a)(186.0)%

(a)The effective tax rate of PSO reflects a tax benefit. The resulting positive rate is attributable to the recognition of tax benefits in a period of pretax book losses.

Six Months Ended June 30, 2025
AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
U.S. Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (Decrease) due to:
State and Local Income Taxes, Net0.9 %0.6 %2.5 %1.0 %2.0 %1.3 %3.0 %(2.2)%
Tax Reform Excess ADIT Reversal(1.4)%(2.8)%0.4 %(2.4)%0.2 %(3.2)%(3.1)%0.1 %
Remeasurement of Excess ADIT(19.5)%— %(34.4)%(8.1)%(24.1)%— %(23.5)%(45.7)%
Production and Investment Tax Credits(6.6)%(0.1)%— %(0.1)%(15.8)%— %(51.3)%(36.6)%
Reversal of Origination Flow-Through0.2 %0.1 %0.2 %(1.8)%1.8 %0.7 %0.2 %0.8 %
AFUDC Equity(1.1)%(1.1)%(1.1)%(0.7)%(0.7)%(1.6)%(1.0)%(1.4)%
Other0.1 %(0.1)%— %0.1 %— %— %0.1 %(0.2)%
Effective Income Tax Rate(6.4)%17.6 %(11.4)%9.0 %(15.6)%18.2 %(54.6)%(64.2)%
Schedule of Amount of Income Taxes Paid or Received
Six Months Ended June 30,
Cash Flow Information20262025
(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, 2026AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(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, 2025AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(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)