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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Details of Income Taxes as Reported
Year Ended December 31, 2023AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Federal:
Current$(116.7)$19.8 $93.9 $62.2 $93.2 $46.6 $(60.8)$(88.1)
Deferred115.9 63.5 52.3 (60.5)(56.9)2.8 2.9 59.9 
Total Federal(0.8)83.3 146.2 1.7 36.3 49.4 (57.9)(28.2)
State and Local:
Current69.0 2.7 9.1 6.3 21.1 (0.3)0.3 1.0 
Deferred(13.6)(0.1)(8.2)6.2 1.2 5.2 4.0 (6.1)
Total State and Local55.4 2.6 0.9 12.5 22.3 4.9 4.3 (5.1)
Income Tax Expense (Benefit)$54.6 $85.9 $147.1 $14.2 $58.6 $54.3 $(53.6)$(33.3)

Year Ended December 31, 2022AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Federal:
Current$113.1 $29.0 $98.0 $(61.0)$43.4 $(27.0)$(3.3)$(32.3)
Deferred(88.8)41.4 46.0 86.6 (51.3)73.3 (50.5)13.4 
Total Federal24.3 70.4 144.0 25.6 (7.9)46.3 (53.8)(18.9)
State and Local:
Current26.6 2.2 8.8 (0.4)10.9 (0.3)— (1.8)
Deferred(45.5)— 16.3 (7.0)1.2 (1.8)4.6 (4.5)
Total State and Local(18.9)2.2 25.1 (7.4)12.1 (2.1)4.6 (6.3)
Income Tax Expense (Benefit)$5.4 $72.6 $169.1 $18.2 $4.2 $44.2 $(49.2)$(25.2)

Year Ended December 31, 2021AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Federal:
Current$(27.8)$(1.2)$69.8 $5.0 $26.9 $6.8 $(109.6)$(16.7)
Deferred182.6 40.5 54.1 14.9 (35.5)25.2 105.6 26.2 
Total Federal154.8 39.3 123.9 19.9 (8.6)32.0 (4.0)9.5 
State and Local:
Current6.0 3.0 5.8 2.2 (0.6)(3.1)— 0.4 
Deferred(45.3)0.8 14.4 — (1.4)5.5 8.1 (10.5)
Total State and Local(39.3)3.8 20.2 2.2 (2.0)2.4 8.1 (10.1)
Income Tax Expense (Benefit)$115.5 $43.1 $144.1 $22.1 $(10.6)$34.4 $4.1 $(0.6)
Reconciliation of Federal Statutory Tax Rate to Reported Tax Rate
Year Ended December 31, 2023AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Net Income$2,212.6 $370.4 $614.2 $294.4 $335.9 $328.2 $208.8 $223.8 
Less: Equity Earnings (1.4)— — — — — — (1.4)
Income Tax Expense (Benefit)54.6 85.9 147.1 14.2 58.6 54.3 (53.6)(33.3)
Pretax Income$2,265.8 $456.3 $761.3 $308.6 $394.5 $382.5 $155.2 $189.1 
Income Taxes on Pretax Income at Statutory Rate (21%)
$475.8 $95.8 $159.9 $64.8 $82.8 $80.3 $32.6 $39.7 
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Reversal of Origination Flow-Through26.0 0.6 2.4 9.9 6.4 2.6 0.4 2.1 
Investment Tax Credit Amortization(50.3)(0.7)— — (1.6)— (1.4)(0.2)
Production Tax Credits(175.2)— — (0.1)— — (64.3)(67.1)
State and Local Income Taxes, Net43.7 2.1 0.7 9.9 17.5 3.9 3.5 (4.0)
Removal Costs(22.0)— — (5.1)(11.8)— — — 
AFUDC(39.8)(6.0)(17.5)(5.5)(2.3)(3.6)(1.8)(2.4)
Tax Reform Excess ADIT Reversal(151.1)(6.0)1.7 (17.3)(30.0)(28.9)(23.3)(12.6)
Remeasurement of Excess ADIT(46.0)— — (46.0)— — — — 
Federal Return to Provision— (0.1)— 3.4 (2.5)(0.4)0.6 1.0 
Disallowance Cost — — — — — — — 12.0 
Other(6.5)0.2 (0.1)0.2 0.1 0.4 0.1 (1.8)
Income Tax Expense (Benefit)$54.6 $85.9 $147.1 $14.2 $58.6 $54.3 $(53.6)$(33.3)
Effective Income Tax Rate2.4 %18.8 %19.3 %4.6 %14.9 %14.2 %(34.5)%(17.6)%
Year Ended December 31, 2022AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Net Income$2,305.6 $307.9 $594.2 $394.2 $324.7 $287.8 $167.6 $294.3 
Less: Equity Earnings(1.4)— — — — (0.6)— (1.4)
Income Tax Expense (Benefit)5.4 72.6 169.1 18.2 4.2 44.2 (49.2)(25.2)
Pretax Income$2,309.6 $380.5 $763.3 $412.4 $328.9 $331.4 $118.4 $267.7 
Income Taxes on Pretax Income at Statutory Rate (21%)
$485.0 $79.9 $160.3 $86.6 $69.1 $69.6 $24.9 $56.2 
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Reversal of Origination Flow-Through17.1 — — 4.7 2.9 3.0 — 2.3 
Investment Tax Credit Amortization(14.3)— — — (3.1)— (1.6)— 
Production Tax Credits(197.1)— — — — — (47.7)(57.1)
State and Local Income Taxes, Net(14.0)1.7 19.8 (5.9)9.6 (1.6)4.3 (4.9)
Removal Costs(26.5)— — (9.8)(12.4)— — — 
AFUDC(29.3)(4.1)(14.8)(3.7)(2.1)(2.9)— — 
Tax Reform Excess ADIT Reversal(214.5)(5.5)— (50.9)(54.0)(27.5)(25.4)(14.8)
Federal Return to Provision(17.4)— — (2.8)(6.2)3.5 (3.7)— 
Other16.4 0.6 3.8 — 0.4 0.1 — (6.9)
Income Tax Expense (Benefit)$5.4 $72.6 $169.1 $18.2 $4.2 $44.2 $(49.2)$(25.2)
Effective Income Tax Rate0.2 %19.1 %22.2 %4.4 %1.3 %13.3 %(41.6)%(9.4)%

Year Ended December 31, 2021AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Net Income$2,488.1 $289.8 $591.7 $348.9 $279.8 $253.6 $141.1 $242.1 
Less: Equity Earnings (3.4)— — — — — — (3.4)
Income Tax Expense (Benefit)115.5 43.1 144.1 22.1 (10.6)34.4 4.1 (0.6)
Pretax Income$2,600.2 $332.9 $735.8 $371.0 $269.2 $288.0 $145.2 $238.1 
Income Taxes on Pretax Income at Statutory Rate (21%)
$546.0 $69.9 $154.5 $77.9 $56.5 $60.5 $30.5 $50.0 
Increase (Decrease) in Income Taxes Resulting from the Following Items:
Reversal of Origination Flow-Through25.9 — — 11.7 3.5 2.2 — 1.8 
Investment Tax Credit Amortization(22.0)— — — (6.4)— (1.8)— 
Production Tax Credits(98.8)— — — — — (6.0)(7.2)
State and Local Income Taxes, Net39.4 2.4 19.8 2.1 (1.3)— 6.4 (8.0)
Removal Costs(20.0)— — (7.3)(9.7)— — — 
AFUDC(30.6)(4.5)(14.1)(4.6)(2.7)(2.3)— — 
Parent Company Loss Benefit— (3.2)(18.3)— (2.8)— — — 
Tax Adjustments (a)(55.1)— — 4.5 — 8.9 — — 
Tax Reform Excess ADIT Reversal(255.6)(21.3)— (60.5)(46.3)(32.6)(25.4)(31.1)
Federal Return to Provision(1.6)— — (1.6)(0.6)(1.2)0.7 — 
Other(12.1)(0.2)2.2 (0.1)(0.8)(1.1)(0.3)(6.1)
Income Tax Expense (Benefit)$115.5 $43.1 $144.1 $22.1 $(10.6)$34.4 $4.1 $(0.6)
Effective Income Tax Rate4.4 %12.9 %19.6 %6.0 %(3.9)%11.9 %2.8 %(0.3)

(a)2021 amount represents an out of period adjustment related to Deferred Income Taxes and Income Tax Expense (Benefit). Management concluded the misstatement and subsequent correction was not material to the 2021 or prior period financial statements.
Reconciliation of Significant Temporary Differences
Year Ended December 31, 2023AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Deferred Tax Assets$3,216.1 $173.6 $188.1 $473.0 $1,014.1 $271.4 $282.3 $441.5 
Deferred Tax Liabilities(12,631.8)(1,401.4)(1,335.8)(2,484.9)(2,184.0)(1,424.1)(1,113.5)(1,620.8)
Net Deferred Tax Liabilities $(9,415.7)$(1,227.8)$(1,147.7)$(2,011.9)$(1,169.9)$(1,152.7)$(831.2)$(1,179.3)
Property Related Temporary Differences$(7,779.7)$(1,227.1)$(1,134.6)$(1,556.0)$(298.1)$(1,162.1)$(817.2)$(1,087.2)
Amounts Due to Customers for Future Income Taxes900.1 109.3 119.0 143.4 103.2 104.5 88.6 142.5 
Deferred State Income Taxes(1,222.8)(41.5)(155.4)(308.4)(238.1)(68.8)(122.6)(238.6)
Securitized Assets(79.9)(45.6)— (29.2)— (5.1)— — 
Regulatory Assets(768.9)(57.6)(7.6)(257.4)32.3 (83.5)(83.8)(143.4)
Accrued Nuclear Decommissioning(776.5)— — — (776.5)— — — 
Net Operating Loss Carryforward148.0 — 3.9 — — 2.6 25.3 47.5 
Tax Credit Carryforward321.9 13.7 — 0.1 7.2 41.0 53.8 68.6 
Operating Lease Liability131.1 16.6 0.3 15.1 10.8 14.6 23.6 26.3 
Investment in Partnership(293.1)— — (0.1)— (0.7)— (1.3)
All Other, Net4.1 4.4 26.7 (19.4)(10.7)4.8 1.1 6.3 
Net Deferred Tax Liabilities $(9,415.7)$(1,227.8)$(1,147.7)$(2,011.9)$(1,169.9)$(1,152.7)$(831.2)$(1,179.3)

Year Ended December 31, 2022AEPAEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Deferred Tax Assets$3,567.4 $177.0 $165.0 $510.3 $933.7 $218.8 $225.0 $374.9 
Deferred Tax Liabilities(12,464.3)(1,321.2)(1,221.5)(2,502.5)(2,090.7)(1,319.9)(1,013.6)(1,464.6)
Net Deferred Tax Liabilities $(8,896.9)$(1,144.2)$(1,056.5)$(1,992.2)$(1,157.0)$(1,101.1)$(788.6)$(1,089.7)
Property Related Temporary Differences$(7,788.1)$(1,130.7)$(1,081.5)$(1,509.8)$(398.0)$(1,133.8)$(763.3)$(1,053.8)
Amounts Due to Customers for Future Income Taxes962.7 111.0 118.5 163.0 114.3 112.6 96.0 146.2 
Deferred State Income Taxes(1,049.3)(36.6)(108.1)(318.5)(227.0)(59.6)(81.9)(208.7)
Securitized Assets(98.9)(65.0)— (33.9)— — — — 
Regulatory Assets(865.2)(48.9)(1.1)(301.2)(29.5)(57.6)(140.2)(114.1)
Accrued Nuclear Decommissioning(632.7)— — — (632.7)— — — 
Net Operating Loss Carryforward132.4 — 5.5 — — — 25.8 42.7 
Tax Credit Carryforward612.0 — 0.2 — — — 54.3 66.0 
Operating Lease Liability142.9 20.3 0.3 15.6 13.6 15.5 — — 
Investment in Partnership(338.9)— — — — — — — 
Valuation Allowance(28.2)— (0.1)— — — — — 
Deferred Revenues7.1 — — — — — — — 
Postretirement Benefits2.5 — — — — — — — 
All Other, Net44.8 5.7 9.8 (7.4)2.3 21.8 20.7 32.0 
Net Deferred Tax Liabilities $(8,896.9)$(1,144.2)$(1,056.5)$(1,992.2)$(1,157.0)$(1,101.1)$(788.6)$(1,089.7)
State Net Income Tax Operating Loss Carryforwards
State Net Income
 Tax Operating LossYears of
CompanyState/MunicipalityCarryforwardExpiration
(in millions)
AEPArkansas$259.3 2024-2033
AEPColorado80.8 2041
AEPIllinois54.4 2039-2041
AEPKentucky204.1 2030-2037
AEPLouisiana629.2 NA
AEP Michigan45.6 2030-2032
AEPOhio Municipal1,954.8 2024-2028
AEPOklahoma877.9 2037
AEPPennsylvania47.8 2030-2043
AEPTennessee47.7 2032-2038
OPCoOhio Municipal152.3 2024-2028
PSOOklahoma947.1 2037
SWEPCoArkansas258.9 2024-2033
SWEPCoLouisiana619.1 NA
NA    Not applicable.
Summary of Tax Credit Carryforwards
Total FederalTotal State
Tax CreditTax Credit
CompanyCarryforwardCarryforward
(in millions)
AEP$321.9 $40.0 
AEP Texas13.7 — 
APCo0.1 — 
I&M7.2 — 
OPCo41.0 — 
PSO53.8 40.0 
SWEPCo68.6 —