RATE MATTERS (Tables)

9 Months Ended

Sep. 30, 2026

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 September 30, 2026, of generating facilities planned for retirement:


Plant	Net Book Value		Accelerated Depreciation Regulatory Asset		Cost of Removal Regulatory Liability			Projected Retirement Date		Current Authorized Recovery Period	Annual Depreciation (a)
	(dollars in millions)
Northeastern Plant, Unit 3	$	50	$	259	$	22	(b)	2026		(c)	$	8

Welsh Plant, Units 1 and 3	220		264		56		(d)	2028	(e)	(f)	43

(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
	September 30,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	264	$	220
UTM Deferred Costs	89		56
System Resiliency Plan Deferred Costs - Texas	73		17
Plant Retirement Costs - Unrecovered Plant, Pirkey - Texas, FERC	61		93








Storm-Related Costs	46		43

Other Regulatory Assets Pending Final Regulatory Approval	7		6
Regulatory Assets Currently Not Earning a Return
Storm-Related Costs (a) (b)	376		363
Plant Retirement Costs – Asset Retirement Obligation Costs (c)	289		257
NOLC Costs (d)	83		89

Deferred Pension and OPEB Costs	40		27
Vegetation Management Costs	37		—
Other Regulatory Assets Pending Final Regulatory Approval	169		136
Total Regulatory Assets Pending Final Regulatory Approval	$	1,534	$	1,307

(a)In March 2026, the WVPSC issued a financing order approving a securitization that included $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)In May 2026, APCo issued securitization bonds that included $141 million of Virginia storm operation and maintenance costs.

(c)Includes ARO adjustment related to the revised CCR Rule to be addressed in future regulatory proceedings. See the “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.

(d)Approved for collection through rates, subject to refund, for the Oklahoma and SWEPCo-Texas jurisdictions.


	AEP Texas
	September 30,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
UTM Deferred Costs	$	89	$	56
Storm-Related Costs	41		41

System Resiliency Plan Deferred Costs	34		17

Regulatory Assets Currently Not Earning a Return
Storm-Related Costs	51		31
Deferred Pension and OPEB Costs	40		27




Other Regulatory Assets Pending Final Regulatory Approval	9		9
Total Regulatory Assets Pending Final Regulatory Approval	$	264	$	181


	AEPTCo
	September 30,		December 31,
	2026		2025
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
	September 30,		December 31,
	2026		2025
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)	188		169
Storm-Related Costs – West Virginia (b)	70		39
Storm-Related Costs - Virginia (c)	69		172
Vegetation Management Costs	17		—
Pension Settlement	15		16
Virginia Corporate Alternative Minimum Tax	—		13
West Virginia Corporate Alternative Minimum Tax	—		11

Other Regulatory Assets Pending Final Regulatory Approval	35		18
Total Regulatory Assets Pending Final Regulatory Approval	$	396	$	440

(a)Includes ARO adjustment related to the revised CCR Rule to be addressed in a future regulatory proceeding. See the “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 included $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 Virginia storm operation and maintenance costs. See the “2025 Virginia Securitization Filing” section below for additional information.


	I&M
	September 30,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return

Other Regulatory Assets Pending Final Regulatory Approval	$	5	$	4
Regulatory Assets Currently Not Earning a Return
Plant Retirement Costs – Asset Retirement Obligation Costs (a)	82		78
Storm-Related Costs – Indiana	57		29



Other Regulatory Assets Pending Final Regulatory Approval	9		7
Total Regulatory Assets Pending Final Regulatory Approval	$	153	$	118


	PSO
	September 30,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)




Regulatory Assets Currently Not Earning a Return


Storm-Related Costs	$	38	$	25
Oklahoma Senate Bill 998 Deferral	28		9
Generation PBA and Delayed Retirement Deferral	27		13

NOLC Costs (a)	17		23
Plant Retirement Costs – Asset Retirement Obligation Costs (b)	12		6
Other Regulatory Assets Pending Final Regulatory Approval	1		8
Total Regulatory Assets Pending Final Regulatory Approval	$	123	$	84

(a)Approved for collection through rates, subject to refund.

(b)Includes ARO adjustment related to the revised CCR Rule to be addressed in PSO’s 2026 Oklahoma Base Rate Case regulatory proceeding. See the “Federal EPA’s Revised CCR Rule” section of Note 5 for additional information.


	SWEPCo
	September 30,		December 31,
	2026		2025
Noncurrent Regulatory Assets	(in millions)

Regulatory Assets Currently Earning a Return
Welsh Plant, Units 1 and 3 Accelerated Depreciation	$	264	$	220
Plant Retirement Costs - Unrecovered Plant, Pirkey - Texas, FERC	61		93


System Resiliency Plan Deferred Costs - Texas	39		1

Income Taxes, Net	7		—
Other Regulatory Assets Pending Final Regulatory Approval	5		2
Regulatory Assets Currently Not Earning a Return


NOLC Costs (a)	65		66
Storm-Related Costs - Louisiana, Texas	59		43
Other Regulatory Assets Pending Final Regulatory Approval	17		20
Total Regulatory Assets Pending Final Regulatory Approval	$	517	$	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 Securitization	APCo		WPCo		Total
	(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	274		319		593
Forecasted Undepreciated CCR and ELG Investments of Amos, Mitchell and Mountaineer (as of November 30, 2024)	88		149		237
Deferred Storm Other Operation and Maintenance Expense Regulatory Assets	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.

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:


2021		2022		2023		2024		2025		Total
(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:


	AEP		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Total Revenues	$	270	$	214	$	6	$	11	$	—	$	6	$	27
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	(24)		—		(17)		—		—		—		—
Other Operation	53		—		15		(6)		—		19		10
Income (Loss) Before Income Tax Expense (Benefit)	241		214		8		17		—		(13)		17
Income Tax Expense (Benefit)	(313)		(203)		(21)		(28)		—		(16)		(39)
Net Income	554		417		29		45		—		3		56
Net Income Attributable to Noncontrolling Interest	55		55		—		—		—		—		—
Earnings Attributable to Common Shareholder	$	499	$	362	$	29	$	45	$	—	$	3	$	56