Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Impact of Tax Reform on Financial Statements

Year Ended December 31, 2017	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Decrease in Deferred Income Tax Liabilities	$	6,101.1	$	807.1	$	558.6	$	1,296.4	$	808.7	$	743.1	$	538.6	$	782.9

Results of Decrease in Deferred Income Tax Liabilities

Year Ended December 31, 2017	AEP (c)			AEP Texas				AEPTCo		APCo		I&M		OPCo				PSO		SWEPCo
	(in millions)
Increase (Decrease) in Income Tax Expense (a)	$	(16.5	)	$	(117.4	)	(b)	$	0.6	$	5.7	$	2.3	$	(14.3	)	(b)	$	2.8	$	0.7
Decrease in Regulatory Assets	470.2			12.1				66.9		129.1		85.3		62.7				8.3		69.8
Increase in Regulatory Liabilities	5,614.4			677.6				492.3		1,173.0		725.7		666.1				533.1		713.8

(a) In 2017, in contemplation of corporate federal tax reform, the Registrants adopted a method under Internal Revenue Section 162 for deducting repair and maintenance costs associated with transmission and distribution property. This change resulted in a decrease in state income tax expense of approximately $10 million that has been excluded from the tables above.

(b) AEP Texas and OPCo recorded  favorable adjustments to income tax expense of approximately $113 million and $16 million related to previously owned deregulated generation assets and certain deferred fuel amounts, respectively.

Details of Income Taxes as Reported

Year Ended December 31, 2017	AEP			AEP Texas			AEPTCo			APCo			I&M			OPCo		PSO			SWEPCo
	(in millions)
Federal:
Current	$	(4.0	)	$	(85.7	)	$	(127.5	)	$	15.3		$	(106.5	)	$	11.2	$	(77.1	)	$	(30.1	)
Deferred	856.6			63.3			256.0			166.9			202.1			141.3		122.7			84.8
Deferred Investment Tax Credits	48.6			(1.6		)	—			(0.1		)	(4.7		)	—		(1.6		)	(1.4		)
Total Federal	901.2			(24.0		)	128.5			182.1			90.9			152.5		44.0			53.3
State and Local:
Current	16.0			0.6			1.9			(1.4		)	(8.1		)	0.2		(0.2		)	(0.9		)
Deferred	44.9			—			16.8			4.6			(1.4		)	6.6		2.0			(4.3		)
Deferred Investment Tax Credits	7.6			—			—			—			—			—		4.3			—
Total State and Local	68.5			0.6			18.7			3.2			(9.5		)	6.8		6.1			(5.2		)
Income Tax Expense (Credit) Before Discontinued Operations	$	969.7		$	(23.4	)	$	147.2		$	185.3		$	81.4		$	159.3	$	50.1		$	48.1

Year Ended December 31, 2016	AEP			AEP Texas			AEPTCo			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Federal:
Current	$	(30.7	)	$	40.9		$	(129.4	)	$	64.1		$	(44.8	)	$	178.8		$	(28.0	)	$	(96.7	)
Deferred	(28.8		)	29.9			205.9			125.8			104.9			(40.8		)	77.2			172.6
Deferred Investment Tax Credits	17.6			(1.7		)	—			(0.1		)	3.8			—			(1.4		)	(1.2		)
Total Federal	(41.9		)	69.1			76.5			189.8			63.9			138.0			47.8			74.7
State and Local:
Current	(10.5		)	(8.8		)	0.4			4.4			3.4			4.2			(1.9		)	(12.6		)
Deferred	(21.2		)	(0.4		)	17.2			4.9			0.2			1.6			5.3			(10.0		)
Deferred Investment Tax Credits	(0.1		)	—			—			—			—			—			3.2			—
Total State and Local	(31.8		)	(9.2		)	17.6			9.3			3.6			5.8			6.6			(22.6		)
Income Tax Expense (Credit) Before Discontinued Operations	$	(73.7	)	$	59.9		$	94.1		$	199.1		$	67.5		$	143.8		$	54.4		$	52.1

Year Ended December 31, 2015	AEP		AEP Texas			AEPTCo
	(in millions)
Federal:
Current	$	107.3	$	61.4		$	(126.3	)
Deferred	774.8		(7.1		)	171.3
Deferred Investment Tax Credits	—		(1.7		)	—
Total Federal	882.1		52.6			45.0
State and Local:
Current	14.5		5.6			3.1
Deferred	23.0		—			11.9
Total State and Local	37.5		5.6			15.0
Income Tax Expense Before Discontinued Operations	$	919.6	$	58.2		$	60.0

Year Ended December 31, 2015	APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Income Tax Expense (Credit):
Current	$	(32.9	)	$	5.2		$	89.0		$	(6.4	)	$	44.3
Deferred	227.5			94.2			37.6			58.3			41.9
Deferred Investment Tax Credits	(0.3		)	(3.3		)	(0.1		)	(0.6		)	(1.4		)
Income Tax Expense	$	194.3		$	96.1		$	126.5		$	51.3		$	84.8

Reconciliation of Federal Statutory Tax Rate to Reported Tax Rate

AEP	Years Ended December 31,
	2017				2016					2015
	(in millions)
Net Income	$	1,928.9			$	618.0				$	2,052.3
Discontinued Operations (Net of Income Tax of $0, $0 and $6.2 in 2017, 2016 and 2015, Respectively)	—				2.5					(283.7			)
Income Tax Expense (Credit) Before Discontinued Operations	969.7				(73.7				)	919.6
Pretax Income	$	2,898.6			$	546.8				$	2,688.2
Income Taxes on Pretax Income at Statutory Rate (35%)	$	1,014.5			$	191.4				$	940.9
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	60.2				41.7					53.6
Investment Tax Credit Amortization	(18.8			)	(12.3				)	(11.6			)
State and Local Income Taxes, Net	54.7				(20.7				)	24.4
Removal Costs	(32.7			)	(39.8				)	(28.8			)
AFUDC	(37.4			)	(44.8				)	(51.6			)
Valuation Allowance	(1.8			)	(128.3				)	17.2
U.K. Windfall Tax	—				(12.9				)	—
Tax Reform Adjustments	(26.7			)	—					—
Tax Adjustments	(35.8			)	(43.9				)	(20.1			)
Other	(6.5			)	(4.1				)	(4.4			)
Income Tax Expense (Credit) Before Discontinued Operations	$	969.7			$	(73.7			)	$	919.6
Effective Income Tax Rate	33.5		%		(13.5		)	%		34.2		%

AEP Texas	Years Ended December 31,
	2017					2016				2015
	(in millions)
Net Income	$	310.5				$	146.6			$	120.3
Discontinued Operations (Net of Income Tax of $0, $27.6 and $1.8 in 2017, 2016 and 2015, Respectively)	—					48.8				1.4
Income Tax Expense	(23.4				)	59.9				58.2
Pretax Income	$	287.1				$	255.3			$	179.9
Income Taxes on Pretax Income at Statutory Rate (35%)	$	100.5				$	89.4			$	63.0
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	0.7					0.5				0.5
Investment Tax Credit Amortization	(1.6				)	(1.7			)	(1.7			)
State and Local Income Taxes, Net	0.4					(6.0			)	3.6
Parent Company Loss Benefit	—					(2.5			)	(3.1			)
Tax Reform Adjustments	(117.4				)	—				—
Tax Adjustments	(4.2				)	(4.9			)	(1.6			)
U.K. Windfall Tax	—					(12.9			)	—
Other	(1.8				)	(2.0			)	(2.5			)
Income Tax Expense (Credit) Before Discontinued Operations	$	(23.4			)	$	59.9			$	58.2
Effective Income Tax Rate	(8.2		)	%		23.5		%		32.4		%

AEPTCo	Years Ended December 31,
	2017				2016				2015
	(in millions)
Net Income	$	286.1			$	192.7			$	132.9
Income Tax Expense	147.2				94.1				60.0
Pretax Income	$	433.3			$	286.8			$	192.9
Income Taxes on Pretax Income at Statutory Rate (35%)	$	151.7			$	100.4			$	67.5
Increase (Decrease) in Income Taxes Resulting from the Following Items:
AFUDC	(18.3			)	(18.3			)	(18.6			)
State and Local Income Taxes, Net	12.2				11.4				9.8
Tax Reform Adjustments	0.6				—				—
Other	1.0				0.6				1.3
Income Tax Expense	$	147.2			$	94.1			$	60.0
Effective Income Tax Rate	34.0		%		32.8		%		31.1		%

APCo	Years Ended December 31,
	2017				2016				2015
	(in millions)
Net Income	$	331.3			$	369.1			$	340.6
Income Tax Expense	185.3				199.1				194.3
Pretax Income	$	516.6			$	568.2			$	534.9
Income Taxes on Pretax Income at Statutory Rate (35%)	$	180.8			$	198.9			$	187.2
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	18.0				19.3				19.8
Investment Tax Credit Amortization	(0.1			)	(0.1			)	(0.3			)
State and Local Income Taxes, Net	3.5				6.0				7.2
Removal Costs	(12.4			)	(12.0			)	(9.9			)
AFUDC	(5.0			)	(6.1			)	(7.0			)
Valuation Allowance	—				(1.7			)	1.7
Tax Reform Adjustments	4.3				—				—
Other	(3.8			)	(5.2			)	(4.4			)
Income Tax Expense	$	185.3			$	199.1			$	194.3
Effective Income Tax Rate	35.9		%		35.0		%		36.3		%

I&M	Years Ended December 31,
	2017				2016				2015
	(in millions)
Net Income	$	186.7			$	239.9			$	204.8
Income Tax Expense	81.4				67.5				96.1
Pretax Income	$	268.1			$	307.4			$	300.9
Income Taxes on Pretax Income at Statutory Rate (35%)	$	93.8			$	107.6			$	105.3
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	11.4				6.7				9.5
Investment Tax Credit Amortization	(4.7			)	(4.7			)	(3.3			)
State and Local Income Taxes, Net	(1.0			)	2.4				5.8
Removal Costs	(13.3			)	(21.3			)	(12.6			)
AFUDC	(5.6			)	(7.3			)	(6.2			)
Tax Adjustments	2.7				(14.2			)	(4.2			)
Tax Reform Adjustments	(2.9			)	—				—
Other	1.0				(1.7			)	1.8
Income Tax Expense	$	81.4			$	67.5			$	96.1
Effective Income Tax Rate	30.4		%		22.0		%		31.9		%

OPCo	Years Ended December 31,
	2017				2016				2015
	(in millions)
Net Income	$	323.9			$	282.2			$	232.7
Income Tax Expense	159.3				143.8				126.5
Pretax Income	$	483.2			$	426.0			$	359.2
Income Taxes on Pretax Income at Statutory Rate (35%)	$	169.1			$	149.1			$	125.7
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	7.6				7.1				8.2
Investment Tax Credit Amortization	—				—				(0.1			)
State and Local Income Taxes, Net	4.4				3.8				0.7
Tax Reform Adjustments	(14.4			)	—				—
Other	(7.4			)	(16.2			)	(8.0			)
Income Tax Expense	$	159.3			$	143.8			$	126.5
Effective Income Tax Rate	33.0		%		33.8		%		35.2		%

PSO	Years Ended December 31,
	2017				2016				2015
	(in millions)
Net Income	$	72.0			$	100.0			$	92.5
Income Tax Expense	50.1				54.4				51.3
Pretax Income	$	122.1			$	154.4			$	143.8
Income Taxes on Pretax Income at Statutory Rate (35%)	$	42.7			$	54.0			$	50.3
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	0.3				0.8				0.5
Investment Tax Credit Amortization	(1.6			)	(1.4			)	(1.8			)
State and Local Income Taxes, Net	4.0				4.2				5.1
AFUDC	(0.2			)	(2.2			)	(3.1			)
Tax Reform Adjustments	2.8				—				—
Other	2.1				(1.0			)	0.3
Income Tax Expense	$	50.1			$	54.4			$	51.3
Effective Income Tax Rate	41.0		%		35.2		%		35.7		%

SWEPCo	Years Ended December 31,
	2017				2016				2015
	(in millions)
Net Income	$	137.5			$	169.7			$	196.0
Income Tax Expense	48.1				52.1				84.8
Pretax Income	$	185.6			$	221.8			$	280.8
Income Taxes on Pretax Income at Statutory Rate (35%)	$	65.0			$	77.6			$	98.3
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Depreciation	1.9				3.2				3.1
Depletion	(5.7			)	(5.5			)	(5.5			)
Investment Tax Credit Amortization	(1.4			)	(1.2			)	(1.4			)
State and Local Income Taxes, Net	(2.3			)	(14.7			)	4.8
AFUDC	(0.9			)	(3.9			)	(9.2			)
Tax Adjustments	(9.9			)	(0.9			)	(3.9			)
Tax Reform Adjustments	(0.4			)	—				—
Other	1.8				(2.5			)	(1.4			)
Income Tax Expense	$	48.1			$	52.1			$	84.8
Effective Income Tax Rate	25.9		%		23.5		%		30.2		%

Reconciliation of Significant Temporary Differences

AEP	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	3,504.6		$	2,753.0
Deferred Tax Liabilities	(10,318.5		)	(14,637.4		)
Net Deferred Tax Liabilities	$	(6,813.9	)	$	(11,884.4	)
Property Related Temporary Differences	$	(5,680.6	)	$	(8,758.1	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	1,064.8			(292.2		)
Deferred State Income Taxes	(1,124.4		)	(976.6		)
Securitized Assets	(257.7		)	(535.6		)
Regulatory Assets	(500.3		)	(896.9		)
Deferred Income Taxes on Other Comprehensive Loss	25.7			88.7
Accrued Nuclear Decommissioning	(457.0		)	(666.8		)
Net Operating Loss Carryforward	86.6			101.2
Tax Credit Carryforward	174.7			45.1
Investment in Partnership	(222.0		)	(349.6		)
Valuation Allowance	—			(1.8		)
All Other, Net	76.3			358.2
Net Deferred Tax Liabilities	$	(6,813.9	)	$	(11,884.4	)

AEP Texas	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	221.0		$	135.8
Deferred Tax Liabilities	(1,134.1		)	(1,667.5		)
Net Deferred Tax Liabilities	$	(913.1	)	$	(1,531.7	)
Property Related Temporary Differences	$	(791.5	)	$	(1,056.1	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	140.9			(5.7		)
Deferred State Income Taxes	(27.5		)	(24.2		)
Regulatory Assets	(36.4		)	(61.3		)
Securitized Transition Assets	(190.5		)	(407.0		)
Deferred Income Taxes on Other Comprehensive Loss	4.1			8.0
Deferred Revenues	10.9			18.0
All Other, Net	(23.1		)	(3.4		)
Net Deferred Tax Liabilities	$	(913.1	)	$	(1,531.7	)

AEPTCo	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	162.7		$	61.4
Deferred Tax Liabilities	(764.4		)	(923.5		)
Net Deferred Tax Liabilities	$	(601.7	)	$	(862.1	)
Property Related Temporary Differences	$	(654.7	)	$	(825.6	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	89.7			(37.2		)
Deferred State Income Taxes	(77.4		)	(55.6		)
Deferred Federal Income Taxes on Deferred State Income Taxes	16.3			19.5
Net Operating Loss Carryforward	16.8			33.3
Valuation Allowance	—			0.1
Tax Credit Carryforward	0.3			—
All Other, Net	7.3			3.4
Net Deferred Tax Liabilities	$	(601.7	)	$	(862.1	)

APCo	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	614.4		$	413.5
Deferred Tax Liabilities	(2,180.1		)	(3,085.8		)
Net Deferred Tax Liabilities	$	(1,565.7	)	$	(2,672.3	)
Property Related Temporary Differences	$	(1,308.2	)	$	(2,031.9	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	228.0			(73.1		)
Deferred State Income Taxes	(335.7		)	(319.3		)
Regulatory Assets	(83.9		)	(159.9		)
Securitized Assets	(59.3		)	(106.9		)
Deferred Income Taxes on Other Comprehensive Loss	(0.4		)	4.5
Tax Credit Carryforward	16.6			11.7
All Other, Net	(22.8		)	2.6
Net Deferred Tax Liabilities	$	(1,565.7	)	$	(2,672.3	)

I&M	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	1,096.4		$	912.9
Deferred Tax Liabilities	(2,050.2		)	(2,440.3		)
Net Deferred Tax Liabilities	$	(953.8	)	$	(1,527.4	)
Property Related Temporary Differences	$	(403.0	)	$	(579.4	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	137.6			(50.4		)
Deferred State Income Taxes	(180.6		)	(158.7		)
Deferred Income Taxes on Other Comprehensive Loss	3.9			8.8
Accrued Nuclear Decommissioning	(457.0		)	(666.8		)
Regulatory Assets	(43.8		)	(81.0		)
Net Operating Loss Carryforward	1.6			7.1
All Other, Net	(12.5		)	(7.0		)
Net Deferred Tax Liabilities	$	(953.8	)	$	(1,527.4	)

OPCo	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	286.0		$	232.4
Deferred Tax Liabilities	(1,048.9		)	(1,578.5		)
Net Deferred Tax Liabilities	$	(762.9	)	$	(1,346.1	)
Property Related Temporary Differences	$	(761.2	)	$	(1,090.8	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	127.3			(43.6		)
Deferred State Income Taxes	(41.7		)	(34.6		)
Regulatory Assets	(107.7		)	(174.1		)
Deferred Income Taxes on Other Comprehensive Loss	(0.6		)	(1.6		)
Deferred Fuel and Purchased Power	(24.5		)	(117.6		)
All Other, Net	45.5			116.2
Net Deferred Tax Liabilities	$	(762.9	)	$	(1,346.1	)

PSO	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	269.2		$	153.8
Deferred Tax Liabilities	(911.2		)	(1,212.6		)
Net Deferred Tax Liabilities	$	(642.0	)	$	(1,058.8	)
Property Related Temporary Differences	$	(623.8	)	$	(927.3	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	111.6			(3.2		)
Deferred State Income Taxes	(142.7		)	(128.5		)
Regulatory Assets	(34.4		)	(67.6		)
Deferred Income Taxes on Other Comprehensive Loss	(0.8		)	(1.8		)
Deferred Federal Income Taxes on Deferred State Income Taxes	33.5			50.6
Net Operating Loss Carryforward	23.1			16.5
Tax Credit Carryforward	0.7			—
All Other, Net	(9.2		)	2.5
Net Deferred Tax Liabilities	$	(642.0	)	$	(1,058.8	)

SWEPCo	December 31,
	2017			2016
	(in millions)
Deferred Tax Assets	$	349.4		$	230.5
Deferred Tax Liabilities	(1,267.1		)	(1,837.4		)
Net Deferred Tax Liabilities	$	(917.7	)	$	(1,606.9	)
Property Related Temporary Differences	$	(908.8	)	$	(1,445.2	)
Amounts Due to/(from) Customers for Future Federal Income Taxes	135.8			(48.2		)
Deferred State Income Taxes	(189.2		)	(175.1		)
Regulatory Assets	(30.8		)	(40.7		)
Deferred Income Taxes on Other Comprehensive Loss	1.3			5.1
Capital/Impairment Loss - Turk Plant	17.4			20.3
Net Operating Loss Carryforward	38.7			40.3
Tax Credit Carryforward	0.8			0.1
All Other, Net	17.1			36.5
Net Deferred Tax Liabilities	$	(917.7	)	$	(1,606.9	)

Federal Net Income Tax Operating Loss Carryforwards

	Year Ended December 31,
Company	2017
	(in millions)
AEP	$	230.1
AEP Texas	261.8
AEPTCo	344.1
I&M	332.6
PSO	213.9
SWEPCo	87.6

State Net Income Tax Operating Loss Carryforwards

		State Net Income
		Tax Operating
		Loss		Year of
Company	State/Municipality	Carryforward		Expiration
		(in millions)
AEP	Arkansas	$	72.0	2022
AEP	Kentucky	157.6		2037
AEP	Louisiana	543.1		2037
AEP	Oklahoma	799.8		2037
AEP	Tennessee	27.9		2032
AEP	Virginia	17.8		2037
AEP	West Virginia	29.2		2037
AEP	Ohio Municipal	106.3		2022
AEPTCo	Oklahoma	296.9		2037
AEPTCo	Ohio Municipal	64.2		2022
I&M	West Virginia	14.1		2037
PSO	Oklahoma	477.0		2037
SWEPCo	Arkansas	71.2		2022
SWEPCo	Louisiana	533.4		2037

Summary of Tax Credit Carryforwards

			Federal Tax				State Tax
			Credit				Credit
	Total Federal		Carryforward		Total State		Carryforward
	Tax Credit		Subject to		Tax Credit		Subject to
Company	Carryforward		Expiration		Carryforward		Expiration
	(in millions)
AEP	$	174.7	$	145.8	$	31.0	$	31.0
AEP Texas	0.6		0.3		—		—
AEPTCo	0.3		0.1		—		—
APCo	16.6		6.1		—		—
I&M	10.6		10.1		—		—
OPCo	14.8		1.0		—		—
PSO	0.7		0.7		31.0		31.0
SWEPCo	0.8		0.7		—		—

Summary of Interest Income, Expense And Reversal

Year Ended December 31, 2017	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Interest Expense	$	1.7	$	—	$	—	$	0.5	$	—	$	—	$	—	$	—
Interest Income	6.1		1.1		—		—		1.0		1.6		—		—
Reversal of Prior Period Interest Expense	—		—		—		—		—		—		—		—

Year Ended December 31, 2016	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Interest Expense	$	2.7	$	—	$	—	$	—	$	0.2	$	0.2	$	—	$	—
Interest Income	9.9		0.2		—		0.1		—		—		0.3		—
Reversal of Prior Period Interest Expense	3.3		0.8		—		—		—		—		0.7		1.4

Year Ended December 31, 2015	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Interest Expense	$	2.7	$	0.2	$	—	$	0.4	$	0.2	$	1.0	$	0.1	$	0.4
Interest Income	0.8		0.2		—		—		—		—		—		—
Reversal of Prior Period Interest Expense	—		—		—		—		—		—		—		—

Amounts Accrued For Interest Related to Uncertain Tax Positions

	Years Ended December 31,
	2017				2016
			Payment of				Payment of
	Receipt of		Interest and		Receipt of		Interest and
Company	Interest		Penalties		Interest		Penalties
	(in millions)
AEP	$	3.6	$	8.3	$	2.9	$	5.8
AEP Texas	2.8		0.1		2.1		0.3
AEPTCo	—		—		—		—
APCo	—		1.0		—		0.1
I&M	—		1.3		—		0.9
OPCo	0.3		1.0		—		1.7
PSO	0.6		—		0.6		—
SWEPCo	—		—		0.1		—

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

	AEP			AEP Texas			AEPTCo		APCo		I&M			OPCo		PSO			SWEPCo
	(in millions)
Balance as of January 1, 2017	$	98.8		$	6.5		$	—	$	—	$	3.8		$	6.9	$	0.1		$	1.3
Increase – Tax Positions Taken During a Prior Period	4.5			2.0			—		—		0.2			—		0.1			1.7
Decrease – Tax Positions Taken During a Prior Period	(28.0		)	(12.3		)	—		—		(0.5		)	—		(0.9		)	(5.4		)
Increase – Tax Positions Taken During the Current Year	3.4			—			—		—		—			—		—			—
Decrease – Tax Positions Taken During the Current Year	—			—			—		—		—			—		—			—
Decrease – Settlements with Taxing Authorities	7.9			3.0			—		—		(0.3		)	—		0.7			1.6
Decrease – Lapse of the Applicable Statute of Limitations	—			—			—		—		—			—		—			—
Balance as of December 31, 2017	$	86.6		$	(0.8	)	$	—	$	—	$	3.2		$	6.9	$	—		$	(0.8	)

	AEP			AEP Texas			AEPTCo		APCo			I&M			OPCo		PSO			SWEPCo
	(in millions)
Balance as of January 1, 2016	$	187.0		$	27.8		$	—	$	0.3		$	2.4		$	6.9	$	1.3		$	9.3
Increase – Tax Positions Taken During a Prior Period	86.0			6.5			—		—			1.8			—		0.1			1.3
Decrease – Tax Positions Taken During a Prior Period	(161.2		)	(15.0		)	—		(0.3		)	(0.4		)	—		(1.3		)	(9.3		)
Increase – Tax Positions Taken During the Current Year	—			—			—		—			—			—		—			—
Decrease – Tax Positions Taken During the Current Year	—			—			—		—			—			—		—			—
Decrease – Settlements with Taxing Authorities	(13.0		)	(12.8		)	—		—			—			—		—			—
Decrease – Lapse of the Applicable Statute of Limitations	—			—			—		—			—			—		—			—
Balance as of December 31, 2016	$	98.8		$	6.5		$	—	$	—		$	3.8		$	6.9	$	0.1		$	1.3

	AEP			AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Balance as of January 1, 2015	$	182.0		$	22.6	$	—	$	—	$	2.3	$	6.9	$	1.3	$	7.5
Increase – Tax Positions Taken During a Prior Period	5.4			5.2		—		0.3		0.1		—		—		1.8
Decrease – Tax Positions Taken During a Prior Period	(0.4		)	—		—		—		—		—		—		—
Increase – Tax Positions Taken During the Current Year	—			—		—		—		—		—		—		—
Decrease – Tax Positions Taken During the Current Year	—			—		—		—		—		—		—		—
Decrease – Settlements with Taxing Authorities	—			—		—		—		—		—		—		—
Decrease – Lapse of the Applicable Statute of Limitations	—			—		—		—		—		—		—		—
Balance as of December 31, 2015	$	187.0		$	27.8	$	—	$	0.3	$	2.4	$	6.9	$	1.3	$	9.3

Unrecognized Tax Benefits Affecting Effective Tax Rate

Company	2017			2016		2015
	(in millions)
AEP	$	10.5		$	15.8	$	100.2
AEP Texas	(0.5		)	4.2		26.0
AEPTCo	—			—		—
APCo	—			—		0.2
I&M	2.1			2.5		1.6
OPCo	4.5			4.4		4.5
PSO	—			0.1		0.9
SWEPCo	(0.5		)	0.8		6.0