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v3.23.1

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Details of Income Taxes as Reported |
Year Ended December 31, 2022 |  | AEP |  | AEP Texas |  | AEPTCo |  | APCo |  | I&M |  | OPCo |  | PSO |  | SWEPCo
|  | (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 Federal |  | 24.3 |  |  | 70.4 |  |  | 144.0 |  |  | 25.6 |  |  | (7.9) |  |  | 46.3 |  |  | (53.8) |  |  | (18.9) |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 26.6 |  |  | 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, 2021 |  | AEP |  | AEP Texas |  | AEPTCo |  | APCo |  | I&M |  | OPCo |  | PSO |  | SWEPCo
|  | (in millions)
Federal: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | (27.8) |  |  | $ | (1.2) |  |  | $ | 69.8 |  |  | $ | 5.0 |  |  | $ | 26.9 |  |  | $ | 6.8 |  |  | $ | (109.6) |  |  | $ | (16.7) |
Deferred |  | 182.6 |  |  | 40.5 |  |  | 54.1 |  |  | 14.9 |  |  | (35.5) |  |  | 25.2 |  |  | 105.6 |  |  | 26.2 |
Total Federal |  | 154.8 |  |  | 39.3 |  |  | 123.9 |  |  | 19.9 |  |  | (8.6) |  |  | 32.0 |  |  | (4.0) |  |  | 9.5 |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 6.0 |  |  | 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) |
Year Ended December 31, 2020 |  | AEP |  | AEP Texas |  | AEPTCo |  | APCo |  | I&M |  | OPCo |  | PSO |  | SWEPCo
|  | (in millions)
Federal: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | (138.2) |  |  | $ | 5.2 |  |  | $ | 22.2 |  |  | $ | 21.4 |  |  | $ | 11.3 |  |  | $ | (26.6) |  |  | $ | (11.4) |  |  | $ | (13.6) |
Deferred |  | 146.9 |  |  | (15.4) |  |  | 65.4 |  |  | (27.1) |  |  | (20.6) |  |  | 74.0 |  |  | 8.3 |  |  | 19.6 |
Total Federal |  | 8.7 |  |  | (10.2) |  |  | 87.6 |  |  | (5.7) |  |  | (9.3) |  |  | 47.4 |  |  | (3.1) |  |  | 6.0 |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | (16.7) |  |  | (0.1) |  |  | 2.8 |  |  | 9.3 |  |  | 1.9 |  |  | (5.4) |  |  | 0.1 |  |  | (8.2) |
Deferred |  | 48.5 |  |  | (0.9) |  |  | 16.3 |  |  | 0.7 |  |  | (0.1) |  |  | 3.2 |  |  | 8.2 |  |  | 11.6 |
Total State and Local |  | 31.8 |  |  | (1.0) |  |  | 19.1 |  |  | 10.0 |  |  | 1.8 |  |  | (2.2) |  |  | 8.3 |  |  | 3.4 |
Income Tax Expense (Benefit) |  | $ | 40.5 |  |  | $ | (11.2) |  |  | $ | 106.7 |  |  | $ | 4.3 |  |  | $ | (7.5) |  |  | $ | 45.2 |  |  | $ | 5.2 |  |  | $ | 9.4 |
Reconciliation of Federal Statutory Tax Rate to Reported Tax Rate |
AEP | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 2,305.6 |  |  | $ | 2,488.1 |  |  | $ | 2,196.7 |
Less: Equity Earnings – Dolet Hills | (1.4) |  |  | (3.4) |  |  | (2.9) |
Income Tax Expense | 5.4 |  |  | 115.5 |  |  | 40.5 |
Pretax Income | $ | 2,309.6 |  |  | $ | 2,600.2 |  |  | $ | 2,234.3 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 485.0 |  |  | $ | 546.0 |  |  | $ | 469.2 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
Reversal of Origination Flow-Through | 17.1 |  |  | 25.9 |  |  | 26.5 |
Permanent - Miscellaneous | 11.5 |  |  | (1.3) |  |  | (9.7) |
Investment Tax Credit Amortization | (14.3) |  |  | (22.0) |  |  | (18.8) |
Production Tax Credits | (197.1) |  |  | (98.8) |  |  | (83.1) |
State and Local Income Taxes, Net | (14.0) |  |  | 39.4 |  |  | 25.1 |
Removal Costs | (26.5) |  |  | (20.0) |  |  | (18.6) |
AFUDC | (29.3) |  |  | (30.6) |  |  | (32.5) |
Tax Adjustments (a) | — |  |  | (55.1) |  |  | — |
Tax Reform Excess ADIT Reversal | (214.5) |  |  | (255.6) |  |  | (268.2) |
Federal Return to Provision | (17.4) |  |  | (1.6) |  |  | (2.6) |
CARES Act | — |  |  | — |  |  | (48.0) |
Other | 4.9 |  |  | (10.8) |  |  | 1.2 |
Income Tax Expense | $ | 5.4 |  |  | $ | 115.5 |  |  | $ | 40.5 |
Effective Income Tax Rate | 0.2 |  | % |  | 4.4 |  | % |  | 1.8 |  | %
(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.
AEP Texas | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 307.9 |  |  | $ | 289.8 |  |  | $ | 241.0 |
Income Tax Expense (Benefit) | 72.6 |  |  | 43.1 |  |  | (11.2) |
Pretax Income | $ | 380.5 |  |  | $ | 332.9 |  |  | $ | 229.8 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 79.9 |  |  | $ | 69.9 |  |  | $ | 48.3 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
State and Local Income Taxes, Net | 1.7 |  |  | 2.4 |  |  | (0.8) |
AFUDC | (4.1) |  |  | (4.5) |  |  | (4.1) |
Parent Company Loss Benefit | — |  |  | (3.2) |  |  | (4.5) |
Tax Reform Excess ADIT Reversal | (5.5) |  |  | (21.3) |  |  | (47.9) |
Other | 0.6 |  |  | (0.2) |  |  | (2.2) |
Income Tax Expense (Benefit) | $ | 72.6 |  |  | $ | 43.1 |  |  | $ | (11.2) |
Effective Income Tax Rate | 19.1 |  | % |  | 12.9 |  | % |  | (4.9) |  | %
AEPTCo | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 594.2 |  |  | $ | 591.7 |  |  | $ | 423.4 |
Income Tax Expense | 169.1 |  |  | 144.1 |  |  | 106.7 |
Pretax Income | $ | 763.3 |  |  | $ | 735.8 |  |  | $ | 530.1 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 160.3 |  |  | $ | 154.5 |  |  | $ | 111.3 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
State and Local Income Taxes, Net | 19.8 |  |  | 19.8 |  |  | 15.1 |
AFUDC | (14.8) |  |  | (14.1) |  |  | (15.5) |
Parent Company Loss Benefit | — |  |  | (18.3) |  |  | (7.0) |
Other | 3.8 |  |  | 2.2 |  |  | 2.8 |
Income Tax Expense | $ | 169.1 |  |  | $ | 144.1 |  |  | $ | 106.7 |
Effective Income Tax Rate | 22.2 |  | % |  | 19.6 |  | % |  | 20.1 |  | %
APCo | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 394.2 |  |  | $ | 348.9 |  |  | $ | 369.7 |
Income Tax Expense | 18.2 |  |  | 22.1 |  |  | 4.3 |
Pretax Income | $ | 412.4 |  |  | $ | 371.0 |  |  | $ | 374.0 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 86.6 |  |  | $ | 77.9 |  |  | $ | 78.5 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
Reversal of Origination Flow-Through | 4.7 |  |  | 11.7 |  |  | 12.7 |
State and Local Income Taxes, Net | (5.9) |  |  | 2.1 |  |  | 7.9 |
Removal Costs | (9.8) |  |  | (7.3) |  |  | (5.7) |
AFUDC | (3.7) |  |  | (4.6) |  |  | (4.5) |
Parent Company Loss Benefit | — |  |  | — |  |  | (6.2) |
Tax Adjustments (a) | — |  |  | 4.5 |  |  | — |
Tax Reform Excess ADIT Reversal | (50.9) |  |  | (60.5) |  |  | (72.3) |
Federal Return to Provision | (2.8) |  |  | (1.6) |  |  | (7.2) |
Other | — |  |  | (0.1) |  |  | 1.1 |
Income Tax Expense | $ | 18.2 |  |  | $ | 22.1 |  |  | $ | 4.3 |
Effective Income Tax Rate | 4.4 |  | % |  | 6.0 |  | % |  | 1.1 |  | %
(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.
I&M | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 324.7 |  |  | $ | 279.8 |  |  | $ | 284.8 |
Income Tax Expense (Benefit) | 4.2 |  |  | (10.6) |  |  | (7.5) |
Pretax Income | $ | 328.9 |  |  | $ | 269.2 |  |  | $ | 277.3 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 69.1 |  |  | $ | 56.5 |  |  | $ | 58.2 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
Reversal of Origination Flow-Through | 2.9 |  |  | 3.5 |  |  | 1.6 |
Investment Tax Credit Amortization | (3.1) |  |  | (6.4) |  |  | (4.5) |
State and Local Income Taxes, Net | 9.6 |  |  | (1.3) |  |  | 1.5 |
Removal Costs | (12.4) |  |  | (9.7) |  |  | (10.5) |
AFUDC | (2.1) |  |  | (2.7) |  |  | (2.4) |
Parent Company Loss Benefit | — |  |  | (2.8) |  |  | (6.4) |
Tax Reform Excess ADIT Reversal | (54.0) |  |  | (46.3) |  |  | (46.8) |
Federal Return to Provision | (6.2) |  |  | (0.6) |  |  | 1.8 |
Other | 0.4 |  |  | (0.8) |  |  | — |
Income Tax Expense (Benefit) | $ | 4.2 |  |  | $ | (10.6) |  |  | $ | (7.5) |
Effective Income Tax Rate | 1.3 |  | % |  | (3.9) |  | % |  | (2.7) |  | %
OPCo | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 287.8 |  |  | $ | 253.6 |  |  | $ | 271.4 |
Equity Earnings of Unconsolidated Subsidiaries | (0.6) |  |  | — |  |  | — |
Income Tax Expense | 44.2 |  |  | 34.4 |  |  | 45.2 |
Pretax Income | $ | 331.4 |  |  | $ | 288.0 |  |  | $ | 316.6 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 69.6 |  |  | $ | 60.5 |  |  | $ | 66.5 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
Reversal of Origination Flow-Through | 3.0 |  |  | 2.2 |  |  | 3.7 |
State and Local Income Taxes, Net | (1.6) |  |  | — |  |  | (1.7) |
AFUDC | (2.9) |  |  | (2.3) |  |  | (2.6) |
Tax Adjustments (a) | — |  |  | 8.9 |  |  | — |
Tax Reform Excess ADIT Reversal | (27.5) |  |  | (32.6) |  |  | (27.2) |
Federal Return to Provision | 3.5 |  |  | (1.2) |  |  | 6.5 |
Other | 0.1 |  |  | (1.1) |  |  | — |
Income Tax Expense | $ | 44.2 |  |  | $ | 34.4 |  |  | $ | 45.2 |
Effective Income Tax Rate | 13.3 |  | % |  | 11.9 |  | % |  | 14.3 |  | %
(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.
PSO | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 167.6 |  |  | $ | 141.1 |  |  | $ | 123.0 |
Income Tax Expense (Benefit) | (49.2) |  |  | 4.1 |  |  | 5.2 |
Pretax Income | $ | 118.4 |  |  | $ | 145.2 |  |  | $ | 128.2 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 24.9 |  |  | $ | 30.5 |  |  | $ | 26.9 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
Investment Tax Credit Amortization | (1.6) |  |  | (1.8) |  |  | (2.1) |
Production Tax Credits | (47.7) |  |  | (6.0) |  |  | — |
State and Local Income Taxes, Net | 4.3 |  |  | 6.4 |  |  | 6.5 |
Parent Company Loss Benefit | — |  |  | — |  |  | (0.2) |
Tax Reform Excess ADIT Reversal | (25.4) |  |  | (25.4) |  |  | (25.5) |
Federal Return to Provision | (3.7) |  |  | 0.7 |  |  | (0.5) |
Other | — |  |  | (0.3) |  |  | 0.1 |
Income Tax Expense (Benefit) | $ | (49.2) |  |  | $ | 4.1 |  |  | $ | 5.2 |
Effective Income Tax Rate | (41.6) |  | % |  | 2.8 |  | % |  | 4.1 |  | %
SWEPCo | Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net Income | $ | 294.3 |  |  | $ | 242.1 |  |  | $ | 183.7 |
Less: Equity Earnings – Dolet Hills | (1.4) |  |  | (3.4) |  |  | (2.9) |
Income Tax Expense (Benefit) | (25.2) |  |  | (0.6) |  |  | 9.4 |
Pretax Income | $ | 267.7 |  |  | $ | 238.1 |  |  | $ | 190.2 |
Income Taxes on Pretax Income at Statutory Rate (21%) | $ | 56.2 |  |  | $ | 50.0 |  |  | $ | 39.9 |
Increase (Decrease) in Income Taxes Resulting from the Following Items: |  |  |  |  |
Reversal of Origination Flow-Through | 2.3 |  |  | 1.8 |  |  | 1.9 |
Depletion | (4.0) |  |  | (2.7) |  |  | (3.4) |
Production Tax Credits | (57.1) |  |  | (7.2) |  |  | — |
State and Local Income Taxes, Net | (4.9) |  |  | (8.0) |  |  | 2.7 |
Parent Company Loss Benefit | — |  |  | — |  |  | (5.6) |
Tax Reform Excess ADIT Reversal | (14.8) |  |  | (31.1) |  |  | (21.9) |
Other | (2.9) |  |  | (3.4) |  |  | (4.2) |
Income Tax Expense (Benefit) | $ | (25.2) |  |  | $ | (0.6) |  |  | $ | 9.4 |
Effective Income Tax Rate | (9.4) |  | % |  | (0.3) |  | % |  | 4.9 |  | %
Reconciliation of Significant Temporary Differences |
AEP | December 31,
| 2022 |  | 2021
| (in millions) (as adjusted)
Deferred Tax Assets | $ | 3,567.4 |  |  | $ | 3,347.1 |
Deferred Tax Liabilities | (12,464.3) |  |  | (11,991.2) |
Net Deferred Tax Liabilities | $ | (8,896.9) |  |  | $ | (8,644.1) |
Property Related Temporary Differences | $ | (7,788.1) |  |  | $ | (7,346.4) |
Amounts Due to Customers for Future Income Taxes | 962.7 |  |  | 1,086.6 |
Deferred State Income Taxes | (1,049.3) |  |  | (1,211.8) |
Securitized Assets | (98.9) |  |  | (128.8) |
Regulatory Assets | (865.2) |  |  | (746.6) |
Accrued Nuclear Decommissioning | (632.7) |  |  | (743.2) |
Net Operating Loss Carryforward | 132.4 |  |  | 303.2 |
Tax Credit Carryforward | 612.0 |  |  | 440.1 |
Operating Lease Liability | 142.9 |  |  | 116.3 |
Investment in Partnership | (338.9) |  |  | (392.1) |
Valuation Allowance | (28.2) |  |  | (25.0) |
Deferred Revenues | 7.1 |  |  | 8.8 |
Postretirement Benefits | 2.5 |  |  | (46.2) |
All Other, Net | 44.8 |  |  | 41.0 |
Net Deferred Tax Liabilities | $ | (8,896.9) |  |  | $ | (8,644.1) |
AEP Texas | December 31,
| 2022 |  | 2021
| (in millions)
Deferred Tax Assets | $ | 177.0 |  |  | $ | 173.8 |
Deferred Tax Liabilities | (1,321.2) |  |  | (1,262.7) |
Net Deferred Tax Liabilities | $ | (1,144.2) |  |  | $ | (1,088.9) |
Property Related Temporary Differences | $ | (1,130.7) |  |  | $ | (1,060.2) |
Amounts Due to Customers for Future Income Taxes | 111.0 |  |  | 110.0 |
Deferred State Income Taxes | (36.6) |  |  | (32.2) |
Securitized Transition Assets | (65.0) |  |  | (84.4) |
Regulatory Assets | (48.9) |  |  | (45.1) |
Operating Lease Liability | 20.3 |  |  | 15.8 |
All Other, Net | 5.7 |  |  | 7.2 |
Net Deferred Tax Liabilities | $ | (1,144.2) |  |  | $ | (1,088.9) |
AEPTCo | December 31,
| 2022 |  | 2021
| (in millions) (as adjusted)
Deferred Tax Assets | $ | 165.0 |  |  | $ | 161.2 |
Deferred Tax Liabilities | (1,221.5) |  |  | (1,139.5) |
Net Deferred Tax Liabilities | $ | (1,056.5) |  |  | $ | (978.3) |
Property Related Temporary Differences | $ | (1,081.5) |  |  | $ | (1,012.4) |
Amounts Due to Customers for Future Income Taxes | 118.5 |  |  | 120.1 |
Deferred State Income Taxes | (108.1) |  |  | (97.0) |
Regulatory Assets | (1.1) |  |  | (1.3) |
Net Operating Loss Carryforward | 5.5 |  |  | 8.1 |
Tax Credit Carryforward | 0.2 |  |  | 0.1 |
Operating Lease Liability | 0.3 |  |  | 0.1 |
Valuation Allowance | (0.1) |  |  | (0.1) |
All Other, Net | 9.8 |  |  | 4.1 |
Net Deferred Tax Liabilities | $ | (1,056.5) |  |  | $ | (978.3) |
APCo | December 31,
| 2022 |  | 2021
| (in millions)
Deferred Tax Assets | $ | 510.3 |  |  | $ | 495.1 |
Deferred Tax Liabilities | (2,502.5) |  |  | (2,299.8) |
Net Deferred Tax Liabilities | $ | (1,992.2) |  |  | $ | (1,804.7) |
Property Related Temporary Differences | $ | (1,509.8) |  |  | $ | (1,476.5) |
Amounts Due to Customers for Future Income Taxes | 163.0 |  |  | 182.1 |
Deferred State Income Taxes | (318.5) |  |  | (288.8) |
Securitized Assets | (33.9) |  |  | (39.3) |
Regulatory Assets | (301.2) |  |  | (177.0) |
Operating Lease Liability | 15.6 |  |  | 14.2 |
All Other, Net | (7.4) |  |  | (19.4) |
Net Deferred Tax Liabilities | $ | (1,992.2) |  |  | $ | (1,804.7) |
I&M | December 31,
| 2022 |  | 2021
| (in millions)
Deferred Tax Assets | $ | 933.7 |  |  | $ | 1,072.2 |
Deferred Tax Liabilities | (2,090.7) |  |  | (2,172.4) |
Net Deferred Tax Liabilities | $ | (1,157.0) |  |  | $ | (1,100.2) |
Property Related Temporary Differences | $ | (398.0) |  |  | $ | (286.2) |
Amounts Due to Customers for Future Income Taxes | 114.3 |  |  | 135.5 |
Deferred State Income Taxes | (227.0) |  |  | (222.0) |
Regulatory Assets | (29.5) |  |  | (23.6) |
Accrued Nuclear Decommissioning | (632.7) |  |  | (743.2) |
Operating Lease Liability | 13.6 |  |  | 13.5 |
All Other, Net | 2.3 |  |  | 25.8 |
Net Deferred Tax Liabilities | $ | (1,157.0) |  |  | $ | (1,100.2) |
OPCo | December 31,
| 2022 |  | 2021
| (in millions)
Deferred Tax Assets | $ | 218.8 |  |  | $ | 204.4 |
Deferred Tax Liabilities | (1,319.9) |  |  | (1,205.3) |
Net Deferred Tax Liabilities | $ | (1,101.1) |  |  | $ | (1,000.9) |
Property Related Temporary Differences | $ | (1,133.8) |  |  | $ | (1,042.0) |
Amounts Due to Customers for Future Income Taxes | 112.6 |  |  | 117.7 |
Deferred State Income Taxes | (59.6) |  |  | (58.8) |
Regulatory Assets | (57.6) |  |  | (39.8) |
Operating Lease Liability | 15.5 |  |  | 17.2 |
All Other, Net | 21.8 |  |  | 4.8 |
Net Deferred Tax Liabilities | $ | (1,101.1) |  |  | $ | (1,000.9) |
PSO | December 31,
| 2022 |  | 2021
| (in millions)
Deferred Tax Assets | $ | 225.0 |  |  | $ | 170.0 |
Deferred Tax Liabilities | (1,013.6) |  |  | (952.3) |
Net Deferred Tax Liabilities | $ | (788.6) |  |  | $ | (782.3) |
Property Related Temporary Differences | $ | (763.3) |  |  | $ | (708.6) |
Amounts Due to Customers for Future Income Taxes | 96.0 |  |  | 111.5 |
Deferred State Income Taxes | (81.9) |  |  | (83.2) |
Regulatory Assets | (140.2) |  |  | (228.0) |
Net Operating Loss Carryforward | 25.8 |  |  | 111.4 |
Tax Credit Carryforward | 54.3 |  |  | 6.6 |
All Other, Net | 20.7 |  |  | 8.0 |
Net Deferred Tax Liabilities | $ | (788.6) |  |  | $ | (782.3) |
SWEPCo | December 31,
| 2022 |  | 2021
| (in millions)
Deferred Tax Assets | $ | 374.9 |  |  | $ | 336.4 |
Deferred Tax Liabilities | (1,464.6) |  |  | (1,424.0) |
Net Deferred Tax Liabilities | $ | (1,089.7) |  |  | $ | (1,087.6) |
Property Related Temporary Differences | $ | (1,053.8) |  |  | $ | (989.6) |
Amounts Due to Customers for Future Income Taxes | 146.2 |  |  | 154.8 |
Deferred State Income Taxes | (208.7) |  |  | (234.9) |
Regulatory Assets | (114.1) |  |  | (101.4) |
Net Operating Loss Carryforward | 42.7 |  |  | 67.4 |
Tax Credit Carryforward | 66.0 |  |  | 8.5 |
All Other, Net | 32.0 |  |  | 7.6 |
Net Deferred Tax Liabilities | $ | (1,089.7) |  |  | $ | (1,087.6) |
State Net Income Tax Operating Loss Carryforwards |
|  |  |  | State Net Income |  |  |  |
|  |  |  | Tax Operating Loss |  | Years of
Company |  | State/Municipality |  | Carryforward |  | Expiration
|  |  |  | (in millions) |  |  |  |
AEP |  | Arkansas |  | $ | 224.4 |  |  | 2023 | - | 2032
AEP |  | Colorado |  | 82.6 |  |  | NA
AEP |  | Illinois |  | 52.4 |  |  | 2031 | - | 2041
AEP |  | Kentucky |  | 231.3 |  |  | 2030 | - | 2037
AEP |  | Louisiana |  | 586.8 |  |  | NA
AEP |  | Michigan |  | 58.7 |  |  | 2029 | - | 2031
AEP |  | New Jersey |  | 13.7 |  |  | 2036 | - | 2040
AEP |  | New Mexico |  | 22.9 |  |  | NA
AEP |  | Ohio Municipal |  | 1,257.7 |  |  | 2023 | - | 2027
AEP |  | Oklahoma |  | 943.3 |  |  | 2037 | - | 2037
AEP |  | Pennsylvania |  | 64.4 |  |  | 2030 | - | 2042
AEP |  | Tennessee |  | 77.7 |  |  | 2030 | - | 2037
AEP |  | Virginia |  | 11.2 |  |  | 2030 | - | 2037
AEP |  | West Virginia |  | 12.3 |  |  | 2029 | - | 2037
AEPTCo |  | Oklahoma |  | 33.0 |  |  | 2037 | - | 2037
OPCo |  | Ohio Municipal |  | 190.1 |  |  | 2024 | - | 2027
PSO |  | Oklahoma |  | 899.6 |  |  | 2037 | - | 2037
SWEPCo |  | Arkansas |  | 224.2 |  |  | 2023 | - | 2032
SWEPCo |  | Louisiana |  | 577.2 |  |  | NA
Summary of Tax Credit Carryforwards |
|  | Total Federal |  |  |  | Total State |  |
|  | Tax Credit |  |  |  | Tax Credit |  |
Company |  | Carryforward |  |  |  | Carryforward |  |
|  | (in millions)
AEP |  | $ | 612.0 |  |  |  |  | $ | 39.2 |  |  |
AEP Texas |  | 1.5 |  |  |  |  | — |  |  |
AEPTCo |  | 0.2 |  |  |  |  | — |  |  |
APCo |  | 2.0 |  |  |  |  | — |  |  |
I&M |  | 11.4 |  |  |  |  | — |  |  |
OPCo |  | 1.0 |  |  |  |  | — |  |  |
PSO |  | 54.3 |  |  |  |  | 39.2 |  |  |
SWEPCo |  | 66.0 |  |  |  |  | — |  |  |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits |
|  | AEP
|  | 2022 |  | 2021 |  | 2020
|  | (in millions)
Balance as of January 1, |  | $ | 14.3 |  |  | $ | 13.2 |  |  | $ | 24.1 |
Increase – Tax Positions Taken During a Prior Period |  | 5.1 |  |  | 1.2 |  |  | 0.6 |
Decrease – Tax Positions Taken During a Prior Period |  | — |  |  | (3.2) |  |  | (14.5) |
Increase – Tax Positions Taken During the Current Year |  | 3.8 |  |  | 3.1 |  |  | 3.0 |
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, |  | $ | 23.2 |  |  | $ | 14.3 |  |  | $ | 13.2 |
|  | OPCo
|  | 2022 |  | 2021 |  | 2020
|  | (in millions)
Balance as of January 1, |  | $ | — |  |  | $ | 3.2 |  |  | $ | 8.4 |
Increase – Tax Positions Taken During a Prior Period |  | 5.1 |  |  | — |  |  | — |
Decrease – Tax Positions Taken During a Prior Period |  | — |  |  | (3.2) |  |  | (5.2) |
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, |  | $ | 5.1 |  |  | $ | — |  |  | $ | 3.2 |

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