Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Status of Tax Reform Regulatory Proceedings

Registrant (Jurisdiction)	Change in Tax Rate	Excess ADIT Subject to Normalization Requirements	Excess ADIT Not Subject to Normalization Requirements
AEP Texas (Texas-Distribution)	Order Issued	Order Issued	Order Issued – Partial (a)
AEP Texas (Texas-Transmission)	Order Issued	To be addressed in a later filing	To be addressed in a later filing
APCo (Virginia)	Legislation Enacted – Case Pending (b)	Legislation Enacted – Case Pending (b)	Order Issued – Partial; Separate Case Pending (c)
APCo (West Virginia)	Order Issued	Order Issued	Order Issued
I&M (Indiana)	Order Issued	Order Issued	Order Issued
I&M (Michigan)	Order Issued; Separate Case Pending (d)	Case Pending	Case Pending
AEP (Tennessee)	Case Pending	Case Pending	Case Pending
AEP (Kentucky)	Order Issued	Order Issued	Order Issued
OPCo (Ohio)	Order Issued	Order Issued	Order Issued
PSO (Oklahoma)	Order Issued	Order Issued	Order Issued
SWEPCo (Arkansas)	Order Issued	Order Issued	Order Issued
SWEPCo (Louisiana)	Case Pending – Rates Implemented (e)	Case Pending – Rates Implemented (e)	Case Pending – Rates Implemented (e)
SWEPCo (Texas)	Order Issued (f)	To be addressed in a later filing	To be addressed in a later filing
PJM FERC Transmission	Settlement Approved (g)	Settlement Approved (g)	Settlement Approved (g)
SPP FERC Transmission	To be addressed in a later filing	To be addressed in a later filing	To be addressed in a later filing

(a) A portion of the Excess ADIT that is not subject to rate normalization requirements is to be addressed in a later filing.

(b) Legislation has been issued for a blanket amount that is subject to true-up and final commission approval.

(c) In October 2018, the Virginia SCC issued an order approving APCo’s request to refund a portion of the Excess ADIT that is not subject to rate normalization requirements to customers. The remainder is to be addressed in a separate pending case.

(d) A rider was implemented to refund the impact of Tax Reform prospectively and effective September 1, 2018. A separate filing was submitted in October 2018 for the Tax Reform impact from January 1, 2018 through August 31, 2018.

(e) Rates have been implemented through a filed formula rate plan that is subject to true-up and final commission approval.

(f) An interim order has been issued to lower rates. Parties continue to finalize settlement.

(g) An administrative law judge has approved a settlement. The settlement is subject to final FERC ruling.

Estimated Provisions for Revenue Refund Related to Reduction in Corporate Federal Income Tax Rate

	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Included in Current Liabilities	$	51.1	$	—	$	—	$	40.5	$	2.0	$	—	$	2.4	$	5.3
Included in Deferred Credits and Other Noncurrent Liabilities	98.4		21.9		8.6		3.7		12.8		20.8		2.3		27.6

Estimated Provisions for Revenue Refund Offsetting Amortization of Excess ADIT

	AEP		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Included in Current Liabilities	$	15.3	$	—	$	—	$	9.5	$	—	$	—	$	4.7	$	1.2
Included in Deferred Credits and Other Noncurrent Liabilities	20.6		6.9		0.1		0.7		1.4		3.3		—		7.8

Schedule of Effective Income Tax Rate Reconciliation

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2018		2017		2018		2017
AEP	(16.2	)%	33.0	%	5.6	%	35.3	%
AEP Texas	12.6	%	32.2	%	14.9	%	33.6	%
AEPTCo (a)	18.4	%	33.5	%	20.7	%	33.8	%
APCo	(962.2	)%	33.4	%	(13.8	)%	35.5	%
I&M	15.9	%	30.6	%	10.4	%	30.1	%
OPCo	(46.4	)%	36.9	%	4.6	%	35.6	%
PSO	5.6	%	37.2	%	8.7	%	37.4	%
SWEPCo	9.8	%	21.2	%	11.4	%	25.7	%

(a) The 2017 ETRs presented above reflect the revisions made to AEPTCo's previously issued financial statements.  See Note 1 - Significant Accounting Matters for additional information.