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EFFECTS OF REGULATION | 12 Months Ended
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Dec. 31, 2024
Regulatory Assets and Liabilities Disclosure [Abstract] |
EFFECTS OF REGULATION | EFFECTS OF REGULATION The disclosures in this note apply to all Registrants unless indicated otherwise. Regulated Generating Units (Applies to AEP, PSO and SWEPCo) Compliance with extensive environmental regulations requires significant capital investment in environmental monitoring, installation of pollution control equipment, emission fees, disposal costs and permits. Management continuously evaluates cost estimates of complying with these regulations in balance with reliability and other factors, which has resulted in, and in the future may result in, a proposal to retire generating facilities earlier than their currently estimated useful lives. Management is seeking or will seek regulatory recovery, as necessary, for any net book value remaining when the plants are retired. To the extent the net book value of these generation assets is not deemed recoverable, it could reduce future net income and cash flows and impact financial condition. Regulated Generating Units that have been Retired SWEPCo In December 2021, the Dolet Hills Power Station was retired. As part of the 2020 Texas Base Rate Case, the PUCT authorized recovery of SWEPCo’s Texas jurisdictional share of the Dolet Hills Power Station through 2046, but denied SWEPCo the ability to earn a return on this investment resulting in a disallowance of $12 million in 2021. See “2020 Texas Base Rate Case” section of Note 4 for additional information. As part of the 2021 Arkansas Base Rate Case, the APSC authorized recovery of SWEPCo’s Arkansas jurisdictional share of the Dolet Hills Power Station through 2027, but denied SWEPCo the ability to earn a return on this investment resulting in a disallowance of $2 million in the second quarter of 2022. Also, the APSC did not rule on the prudency of the early retirement of the Dolet Hills Power Station, which will be addressed in a future proceeding. As part of the 2020 Louisiana Base Rate Case, the LPSC authorized the recovery of SWEPCo’s Louisiana share of the Dolet Hills Power Station, through a separate rider, through 2032, but did not rule on the prudency of the early retirement of the plant, which is being addressed in a separate proceeding. In April 2024, the LPSC approved a unanimous settlement agreement filed by SWEPCo, LPSC staff and certain intervenors that resolved the prudency of the retirement of the Dolet Hills Power Station and resulted in a disallowance of $14 million in the first quarter of 2024. In March 2023, the Pirkey Plant was retired. As part of the 2020 Louisiana Base Rate Case, the LPSC authorized the recovery of SWEPCo’s Louisiana jurisdictional share of the Pirkey Plant, through a separate rider, through 2032. As part of the 2021 Arkansas Base Rate Case, the APSC granted SWEPCo regulatory asset treatment. SWEPCo will request recovery including a weighted average cost of capital carrying charge through a future proceeding. In July 2023, Texas ALJs issued a PFD that concluded the decision to retire the Pirkey Plant was prudent. In September 2023, the PUCT rejected the ALJs’ July 2023 PFD. In the open meeting, the commissioners expressed their concerns that the analysis in support of SWEPCo’s decision to retire the Pirkey Plant was not robust enough and that SWEPCo should have re-evaluated the decision following Winter Storm Uri. The treatment of the cost of recovery of the Pirkey Plant is expected to be addressed in a future rate case. As of December 31, 2024, the Texas jurisdictional share of the net book value of the Pirkey Plant was $69 million. To the extent any portion of the Texas jurisdictional share of the net book value of the Pirkey Plant is not recoverable, it could reduce future net income and cash flows and impact financial condition. Regulated Generating Units to be Retired PSO In 2014, PSO received final approval from the Federal EPA to close Northeastern Plant, Unit 3, in 2026. The plant was originally scheduled to close in 2040. As a result of the early retirement date, PSO revised the useful life of Northeastern Plant, Unit 3, to the projected retirement date of 2026 and the incremental depreciation is being deferred as a regulatory asset. Following the 2024 Oklahoma Base Rate Case, PSO continues to recover Northeastern Plant, Unit 3 through 2040. SWEPCo In November 2020, management announced that it will cease using coal at the Welsh Plant in 2028. As a result of the announcement, SWEPCo began recording a regulatory asset for accelerated depreciation. In December 2024, SWEPCo filed an application for a Certificate of Convenience and Necessity (CCN) with the APSC, LPSC and PUCT to convert Welsh Plant, Units 1 and 3 to natural gas in 2028 and 2027, respectively. The table below summarizes the net book value including CWIP, before cost of removal and materials and supplies, as of December 31, 2024, of generating facilities planned for early 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 |  |  |  |  |  | $ | 101.7 |  |  | $ | 189.0 |  |  |  |  | $ | 21.0 |  | (b) |  | 2026 |  | (c) |  | $ | 16.2 |
Welsh Plant, Units 1 and 3 |  |  |  |  |  | 324.3 |  |  | 168.6 |  |  |  |  | 57.6 |  | (d) |  | 2028 | (e) | (f) |  | 43.6 |
(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. Dolet Hills Power Station and Related Fuel Operations (Applies to AEP and SWEPCo) In December 2021, the Dolet Hills Power Station was retired. While in operation, DHLC provided 100% of the fuel supply to Dolet Hills Power Station. The remaining book value of Dolet Hills Power Station non-fuel related assets are recoverable by SWEPCo through rate riders. As of December 31, 2024, SWEPCo’s share of the net investment in the Dolet Hills Power Station was $74 million, including materials and supplies, net of cost of removal collected in rates. Fuel costs incurred by the Dolet Hills Power Station are recoverable by SWEPCo through active fuel clauses and are subject to prudency determinations by the various commissions. After closure of the DHLC mining operations and the Dolet Hills Power Station, additional reclamation and other land-related costs incurred by DHLC and Oxbow will continue to be billed to SWEPCo and included in existing fuel clauses. As of December 31, 2024, SWEPCo had a net under-recovered fuel balance of $22 million, inclusive of costs related to the Dolet Hills Power Station billed by DHLC, but excluding impacts of the February 2021 severe winter weather event. In March 2021, the LPSC issued an order allowing SWEPCo to recover up to $20 million of fuel costs in 2021 and defer approximately $35 million of additional costs with a recovery period to be determined at a later date. In August 2022, the LPSC staff filed testimony recommending fuel disallowances of up to $55 million, including denial of recovery of the $35 million deferral, with refunds to customers over five years. In February 2024, an ALJ issued a final recommendation which included a proposed $55 million refund to customers and the denial of recovery of the $35 million deferral. SWEPCo filed a motion to present oral arguments with the LPSC to dispute the ALJ’s recommendations. In April 2024, the LPSC approved a unanimous settlement agreement filed by SWEPCo, LPSC staff and certain intervenors that resolved the fuel recovery dispute and resulted in a fuel disallowance of $11 million. The remaining $24 million regulatory asset balance will be recovered over three years with interest. In March 2021, the APSC approved fuel rates that provide recovery of $20 million for the Arkansas share of the 2021 Dolet Hills Power Station fuel costs over five years through the existing fuel clause. In September 2023, the PUCT approved an unopposed settlement agreement that provides recovery of $48 million of Oxbow mine related costs through 2035. If any of these costs are not recoverable or customer refunds are required, it could reduce future net income and cash flows and impact financial condition. Pirkey Plant and Related Fuel Operations (Applies to AEP and SWEPCo) In March 2023, the Pirkey Plant was retired. SWEPCo is recovering, or will seek recovery of, the remaining net book value of Pirkey Plant non-fuel costs. As of December 31, 2024, SWEPCo’s share of the net investment in the Pirkey Plant was $188 million, including materials and supplies, net of cost of removal. See the “Regulated Generating Units that have been Retired” section above for additional information. Fuel costs are recovered through active fuel clauses and are subject to prudency determinations by the various commissions. As of March 31, 2023, SWEPCo fuel deliveries, including billings of all fixed costs, from Sabine ceased. Additionally, as of December 31, 2024, SWEPCo had a net under-recovered fuel balance of $22 million, inclusive of costs related to the Pirkey Plant billed by Sabine, but excluding impacts of the February 2021 severe winter weather event. Remaining operational, reclamation and other land-related costs incurred by Sabine will be billed to SWEPCo and included in existing fuel clauses. In July 2023, the LPSC ordered that a separate proceeding be established to review the prudence of the decision to retire the Pirkey Plant, including the costs included in fuel for years starting in 2019 and after. In November 2024, the LPSC staff submitted testimony recommending a $5 million fuel disallowance and a lower return on the remaining Pirkey Plant balance or recovery of the retired plant balance at a rate less than SWEPCo’s weighted average cost of capital. In December 2024, SWEPCo filed its rebuttal testimony explaining why there should be no disallowance. A hearing is scheduled for March 2025. In September 2023, the PUCT approved an unopposed settlement agreement that provides recovery of $33 million of Sabine related fuel costs through 2035. In June 2024, SWEPCo filed a fuel reconciliation with the PUCT for its retail operation in Texas for the period of January 2022 through December 2023. In January 2025, intervenors filed testimony recommending a disallowance for fuel costs ranging from $2 million and $25 million related to SWEPCo’s decision to retire the Pirkey Plant, management of fuel inventory and SWEPCo’s energy price offers in SPP. Also, in January 2025, the PUCT staff filed testimony agreeing with SWEPCo’s filed fuel reconciliation. In February 2025, SWEPCo filed rebuttal testimony explaining why there should be no disallowance. If any of these costs are not recoverable or customer refunds are required, it could reduce future net income and cash flows and impact financial condition. Regulatory Assets and Liabilities Regulatory assets and liabilities are comprised of the following items:
|  | AEP
|  | December 31, |  | Remaining Recovery Period
|  | 2024 |  | 2023 |
Current Regulatory Assets |  | (in millions) |  |
Under-recovered Fuel Costs - earns a return |  | $ | 245.7 |  |  | $ | 357.4 |  |  | 1 year
Under-recovered Fuel Costs - does not earn a return |  | 116.0 |  |  | 62.7 |  |  | 1 year
Unrecovered Winter Storm Fuel Costs - earns a return (a) |  | 84.2 |  |  | 93.9 |  |  | 1 year
Total Current Regulatory Assets |  | $ | 445.9 |  |  | $ | 514.0 |  |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Welsh Plant, Units 1 and 3 Accelerated Depreciation |  | $ | 168.6 |  |  | $ | 125.6 |  |  |
Pirkey Plant Accelerated Depreciation |  | 121.3 |  |  | 114.4 |  |  |
Storm-Related Costs |  | 51.0 |  |  | — |  |  |
Unrecovered Winter Storm Fuel Costs (a) |  | 33.5 |  |  | 60.1 |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 20.7 |  |  | 49.8 |  |  |
Total Regulatory Assets Currently Earning a Return |  | 395.1 |  |  | 349.9 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Asset Retirement Obligation Costs (b) |  | 357.4 |  |  | 25.9 |  |  |
Storm-Related Costs |  | 300.8 |  |  | 408.9 |  |  |
NOLC - Costs (c) |  | 92.8 |  |  | — |  |  |
2024-2025 Virginia Under-Earnings |  | 78.4 |  |  | — |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 86.3 |  |  | 52.6 |  |  |
Total Regulatory Assets Currently Not Earning a Return |  | 915.7 |  |  | 487.4 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 1,310.8 |  |  | 837.3 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Unrecovered Plant (d) |  | 661.2 |  |  | 664.2 |  |  | 22 years
Long-term Under-recovered Fuel Costs - West Virginia |  | 283.8 |  |  | 291.5 |  |  | 10 years
Plant Retirement Costs - Asset Retirement Obligation Costs |  | 111.0 |  |  | 110.8 |  |  | 16 years
Storm-Related Costs |  | 106.7 |  |  | 170.9 |  |  | 7 years
Fuel Mine Closure Costs - Texas |  | 70.6 |  |  | 74.3 |  |  | 11 years
Pirkey Plant Accelerated Depreciation - Louisiana |  | 66.4 |  |  | 65.8 |  |  | 8 years
Unrecovered Winter Storm Fuel Costs (a) |  | 62.8 |  |  | 99.3 |  |  | 3 years
Kentucky Deferred Purchased Power Expenses |  | 45.0 |  |  | 43.5 |  |  | 3 years
Rockport Plant Dry Sorbent Injection System and Selective Catalytic Reduction |  | 37.3 |  |  | 46.9 |  |  | 4 years
Texas Mobile Temporary Emergency Electric Energy Facilities Rider |  | 32.6 |  |  | 33.4 |  |  | 2 years
Environmental Control Projects |  | 29.1 |  |  | 31.4 |  |  | 16 years
Ohio Basic Transmission Cost Rider |  | 26.1 |  |  | 42.2 |  |  | 2 years
Plant Retirement Costs - Unrecovered Plant, Dolet Hills Power Station, Louisiana |  | 19.0 |  |  | 40.8 |  |  | 8 years
Long-term Under-recovered Fuel Costs - Virginia |  | — |  |  | 107.0 |  |  |
Other Regulatory Assets Approved for Recovery |  | 159.9 |  |  | 124.9 |  |  | various
Total Regulatory Assets Currently Earning a Return |  | 1,711.5 |  |  | 1,946.9 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Pension and OPEB Funded Status |  | 974.2 |  |  | 1,054.1 |  |  | 12 years
Plant Retirement Costs - Asset Retirement Obligation Costs |  | 360.1 |  |  | 330.2 |  |  | 18 years
Unamortized Loss on Reacquired Debt |  | 90.9 |  |  | 97.2 |  |  | 24 years
Storm-Related Costs |  | 66.5 |  |  | 38.5 |  |  | 7 years
Fuel and Purchased Power Adjustment Rider |  | 57.4 |  |  | 68.3 |  |  | 2 years
Unrealized Loss on Forward Commitments |  | 53.3 |  |  | 131.4 |  |  | 8 years
OVEC Purchased Power |  | 52.0 |  |  | 50.1 |  |  | 2 years
Plant Retirement Costs - Unrecovered Plant, Texas |  | 44.5 |  |  | 48.7 |  |  | 22 years
Cook Plant Nuclear Refueling Outage Levelization |  | 43.0 |  |  | 55.7 |  |  | 3 years
Smart Grid Costs |  | 33.8 |  |  | 26.3 |  |  | 2 years
Postemployment Benefits |  | 27.9 |  |  | 30.6 |  |  | 3 years
Ohio Enhanced Service Reliability Plan |  | 26.2 |  |  | 35.3 |  |  | 2 years
2020-2022 Virginia Triennial Under Earnings |  | 26.0 |  |  | 37.4 |  |  | 3 years
Ohio Distribution Investment Rider |  | 11.0 |  |  | 35.3 |  |  | 2 years
Other Regulatory Assets Approved for Recovery |  | 240.1 |  |  | 269.1 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 2,106.9 |  |  | 2,308.2 |  |  |
Total Regulatory Assets Approved for Recovery |  | 3,818.4 |  |  | 4,255.1 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 5,129.2 |  |  | $ | 5,092.4 |  |  |
(a)See “February 2021 Severe Winter Weather Impacts in SPP” section of Note 4 for additional information. (b)See “Federal EPA’s Revised CCR Rule” section of Note 6 for additional information. (c)In the second quarter of 2024, requests seeking to establish a recovery mechanism for these regulatory assets were filed in Indiana, Oklahoma and Texas. In Indiana and Oklahoma, certain intervenors have challenged the recovery, or have proposed ratemaking treatment that would offset the recovery, of the regulatory assets. In the third quarter of 2024, PUCT Staff and certain intervenors in Texas requested a hearing and direct testimony was filed by SWEPCo in October 2024. In the fourth quarter of 2024, hearings on the merits were held in Indiana and Oklahoma. In January 2025, a second hearing on the merits in Oklahoma was held. A hearing is scheduled for the first quarter of 2025 in Texas. (d)Northeastern Plant, Unit 3 is approved for recovery through 2040, but expected to retire in 2026. PSO records a regulatory asset for accelerated depreciation. See “Regulated Generating Units to be Retired” section above for additional information.
|  | AEP
|  | December 31, |  | Remaining
|  | 2024 |  | 2023 |  | Refund Period
Current Regulatory Liabilities |  | (in millions) |  |
Over-recovered Fuel Costs - pays a return |  | $ | 21.6 |  |  | $ | 3.3 |  |  | 1 year
Over-recovered Fuel Costs - does not pay a return |  | 31.9 |  |  | 23.2 |  |  | 1 year
Total Current Regulatory Liabilities |  | $ | 53.5 |  |  | $ | 26.5 |  |  |
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Income Taxes, Net (a) |  | $ | 176.0 |  |  | $ | 103.1 |  |  |
Total Regulatory Liabilities Currently Paying a Return |  | 176.0 |  |  | 103.1 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
FERC 2021 Transmission Formula Rate Challenge Refunds |  | 131.3 |  |  | 103.1 |  |  |
Other Regulatory Liabilities Pending Final Regulatory Determination |  | 14.7 |  |  | 1.7 |  |  |
Total Regulatory Liabilities Currently Not Paying a Return |  | 146.0 |  |  | 104.8 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 322.0 |  |  | 207.9 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 3,828.0 |  |  | 3,563.5 |  |  | (b)
Income Taxes, Net (a) |  | 1,622.1 |  |  | 2,179.7 |  |  | (c)
Rockport Plant, Unit 2 Accelerated Depreciation for Leasehold Improvements |  | 35.9 |  |  | 44.9 |  |  | 4 years
Other Regulatory Liabilities Approved for Payment |  | 40.4 |  |  | 35.0 |  |  | various
Total Regulatory Liabilities Currently Paying a Return |  | 5,526.4 |  |  | 5,823.1 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Excess Nuclear Decommissioning Funding |  | 2,137.3 |  |  | 1,721.9 |  |  | (d)
Deferred Investment Tax Credits |  | 65.1 |  |  | 154.5 |  |  | 29 years
Demand Side Management |  | 52.6 |  |  | 31.3 |  |  | 2 years
Spent Nuclear Fuel |  | 50.4 |  |  | 47.6 |  |  | (d)
2017-2019 Virginia Triennial Revenue Provision |  | 35.2 |  |  | 37.1 |  |  | 25 years
Peak Demand Reduction/Energy Efficiency |  | 32.8 |  |  | 26.4 |  |  | 2 years
Over-recovered Fuel Costs - Ohio |  | 32.1 |  |  | 26.1 |  |  | 8 years
Other Regulatory Liabilities Approved for Payment |  | 90.1 |  |  | 106.5 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 2,495.6 |  |  | 2,151.4 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 8,022.0 |  |  | 7,974.5 |  |  |
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  | $ | 8,344.0 |  |  | $ | 8,182.4 |  |  |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)Relieved as removal costs are incurred. (c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $192 million and $228 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 10 years. (d)Relieved when plant is decommissioned.
|  | AEP Texas
|  | December 31, |  | Remaining Recovery Period
Regulatory Assets: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Storm-Related Costs |  | $ | 41.3 |  |  | $ | — |  |  |
Total Regulatory Assets Currently Earning a Return |  | 41.3 |  |  | — |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Deferred Pension and OPEB Costs |  | 15.6 |  |  | — |  |  |
Storm-Related Costs |  | 13.1 |  |  | 37.7 |  |  |
Line Inspection Costs |  | 5.8 |  |  | 5.7 |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 1.3 |  |  | 20.9 |  |  |
Total Regulatory Assets Currently Not Earning a Return |  | 35.8 |  |  | 64.3 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 77.1 |  |  | 64.3 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Texas Mobile Temporary Emergency Electric Energy Facilities Rider |  | 32.6 |  |  | 33.4 |  |  | 2 years
Meter Replacement Costs |  | 5.8 |  |  | 9.4 |  |  | 2 years
Other Regulatory Assets Approved for Recovery |  | 22.4 |  |  | 0.7 |  |  | various
Total Regulatory Assets Currently Earning a Return |  | 60.8 |  |  | 43.5 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Pension and OPEB Funded Status |  | 177.5 |  |  | 183.2 |  |  | 12 years
Texas Transmission Cost Recovery Factor |  | 14.2 |  |  | — |  |  | 2 years
Peak Demand Reduction/Energy Efficiency |  | 9.2 |  |  | 9.2 |  |  | 2 years
Other Regulatory Assets Approved for Recovery |  | 14.8 |  |  | 15.1 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 215.7 |  |  | 207.5 |  |  |
Total Regulatory Assets Approved for Recovery |  | 276.5 |  |  | 251.0 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 353.6 |  |  | $ | 315.3 |  |  |
|  | AEP Texas
|  | December 31, |  | Remaining Refund Period
Regulatory Liabilities: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Income Taxes, Net (a) |  | $ | — |  |  | $ | 13.0 |  |  |
Total Regulatory Liabilities Currently Paying a Return |  | — |  |  | 13.0 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Other Regulatory Liabilities Pending Final Regulatory Determination |  | — |  |  | 1.5 |  |  |
Total Regulatory Liabilities Currently Not Paying a Return |  | — |  |  | 1.5 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | — |  |  | 14.5 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 844.0 |  |  | 797.1 |  |  | (b)
Income Taxes, Net (a) |  | 409.4 |  |  | 412.0 |  |  | (c)
Other Regulatory Liabilities Approved for Payment |  | 4.8 |  |  | 3.8 |  |  | various
Total Regulatory Liabilities Currently Paying a Return |  | 1,258.2 |  |  | 1,212.9 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Transition and Restoration Charges |  | 21.6 |  |  | 26.6 |  |  | 5 years
Other Regulatory Liabilities Approved for Payment |  | 5.6 |  |  | 7.4 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 27.2 |  |  | 34.0 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 1,285.4 |  |  | 1,246.9 |  |  |
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  | $ | 1,285.4 |  |  | $ | 1,261.4 |  |  |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)Relieved as removal costs are incurred. (c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $22 million for the year ended December 31, 2024. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 5 years.
|  | AEPTCo
|  | December 31, |  | Remaining Recovery Period
Regulatory Assets: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
PJM/SPP Annual Formula Rate True-up |  | $ | 0.4 |  |  | $ | 3.1 |  |  | 2 years
Total Regulatory Assets Approved for Recovery |  | 0.4 |  |  | 3.1 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 0.4 |  |  | $ | 3.1 |  |  |
|  | AEPTCo
|  | December 31, |  | Remaining Refund Period
Regulatory Liabilities: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Noncurrent Regulatory Liabilities |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Income Taxes, Net (a) |  | $ | 8.8 |  |  | $ | 8.7 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 8.8 |  |  | 8.7 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 582.3 |  |  | 466.3 |  |  | (b)
Income Taxes, Net (a) |  | 287.3 |  |  | 308.7 |  |  | (c)
Total Regulatory Liabilities Approved for Payment |  | 869.6 |  |  | 775.0 |  |  |
Total Noncurrent Regulatory Liabilities |  | $ | 878.4 |  |  | $ | 783.7 |  |  |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)Relieved as removal costs are incurred. (c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $9 million and $13 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 4 years.
|  | APCo
|  | December 31, |  | Remaining Recovery Period
Regulatory Assets: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Current Regulatory Assets |  |  |  |  |  |
Under-recovered Fuel Costs, Virginia - earns a return |  | $ | 148.1 |  |  | $ | 147.4 |  |  | 1 year
Under-recovered Fuel Costs, West Virginia - does not earn a return |  | — |  |  | 8.0 |  |  | 1 year
Total Current Regulatory Assets |  | $ | 148.1 |  |  | $ | 155.4 |  |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | $ | 1.1 |  |  | $ | 0.6 |  |  |
Total Regulatory Assets Currently Earning a Return |  | 1.1 |  |  | 0.6 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Asset Retirement Obligation Costs (a) |  | 282.1 |  |  | 25.9 |  |  |
Storm-Related Costs - West Virginia |  | 144.2 |  |  | 91.5 |  |  |
2024-2025 Virginia Under-Earnings |  | 78.4 |  |  | — |  |  |
Pension Settlement |  | 17.8 |  |  | — |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 11.9 |  |  | 7.5 |  |  |
Total Regulatory Assets Currently Not Earning a Return |  | 534.4 |  |  | 124.9 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 535.5 |  |  | 125.5 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Long-term Under-recovered Fuel Costs - West Virginia |  | 154.1 |  |  | 154.2 |  |  | 10 years
Plant Retirement Costs - Unrecovered Plant |  | 68.0 |  |  | 72.0 |  |  | 19 years
Long-term Under-recovered Fuel Costs - Virginia |  | — |  |  | 107.0 |  |  |
Other Regulatory Assets Approved for Recovery |  | 5.2 |  |  | 7.1 |  |  | various
Total Regulatory Assets Currently Earning a Return |  | 227.3 |  |  | 340.3 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Asset Retirement Obligation Costs |  | 307.5 |  |  | 324.7 |  |  | 15 years
Pension and OPEB Funded Status |  | 107.9 |  |  | 115.8 |  |  | 12 years
Unamortized Loss on Reacquired Debt |  | 67.0 |  |  | 70.7 |  |  | 21 years
2020-2022 Virginia Triennial Under-Earnings |  | 26.0 |  |  | 37.4 |  |  | 3 years
Peak Demand Reduction/Energy Efficiency |  | 14.2 |  |  | 15.0 |  |  | 2 years
Postemployment Benefits |  | 13.2 |  |  | 14.9 |  |  | 3 years
Vegetation Management Program - West Virginia |  | 11.9 |  |  | 12.9 |  |  | 2 years
Virginia Generation Rate Adjustment Clause |  | 11.6 |  |  | 10.9 |  |  | 2 years
Excess SO 2 Allowance Inventory - Virginia |  | 10.5 |  |  | 11.8 |  |  | 8 years
Virginia Transmission Rate Adjustment Clause |  | 3.4 |  |  | 25.5 |  |  | 2 years
Unrealized Loss on Forward Commitments |  | — |  |  | 21.9 |  |  |
Other Regulatory Assets Approved for Recovery |  | 30.0 |  |  | 27.8 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 603.2 |  |  | 689.3 |  |  |
Total Regulatory Assets Approved for Recovery |  | 830.5 |  |  | 1,029.6 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 1,366.0 |  |  | $ | 1,155.1 |  |  |
(a)See “Federal EPA’s Revised CCR Rule” section of Note 6 for additional information.
|  | APCo
|  | December 31, |  | Remaining Refund Period
Regulatory Liabilities: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Current Regulatory Liabilities |  |  |  |  |  |
Over-recovered Fuel Costs, West Virginia - does not pay a return |  | $ | 21.6 |  |  | $ | — |  |  | 1 year
Total Current Regulatory Liabilities |  | $ | 21.6 |  |  | $ | — |  |  |
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Income Taxes, Net (a) |  | $ | (6.3) |  |  | $ | 7.9 |  |  |
Total Regulatory Liabilities Currently Paying a Return |  | (6.3) |  |  | 7.9 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
FERC 2021 Transmission Formula Rate Challenge Refunds |  | 24.9 |  |  | 19.7 |  |  |
Total Regulatory Liabilities Currently Not Paying a Return |  | 24.9 |  |  | 19.7 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 18.6 |  |  | 27.6 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 805.6 |  |  | 759.6 |  |  | (b)
Income Taxes, Net (a) |  | 219.3 |  |  | 240.1 |  |  | (c)
Deferred Investment Tax Credits |  | — |  |  | 0.3 |  |  |
Total Regulatory Liabilities Currently Paying a Return |  | 1,024.9 |  |  | 1,000.0 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
2017-2019 Virginia Triennial Revenue Provision |  | 35.2 |  |  | 37.1 |  |  | 25 years
Virginia Transmission Rate Adjustment Clause |  | 10.2 |  |  | 1.5 |  |  | 2 years
Energy Efficiency Rate Adjustment Clause - Virginia |  | 10.0 |  |  | 3.2 |  |  | 2 years
Other Regulatory Liabilities Approved for Payment |  | 16.9 |  |  | 12.5 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 72.3 |  |  | 54.3 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 1,097.2 |  |  | 1,054.3 |  |  |
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  | $ | 1,115.8 |  |  | $ | 1,081.9 |  |  |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)Relieved as removal costs are incurred. (c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $12 million and $35 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 4 years.
|  | I&M
|  | December 31, |  | Remaining Recovery Period
Regulatory Assets: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Current Regulatory Assets |  |  |  |  |  |
Under-recovered Fuel Costs, Michigan - earns a return |  | $ | 10.6 |  |  | $ | 14.8 |  |  | 1 year
Total Current Regulatory Assets |  | $ | 10.6 |  |  | $ | 14.8 |  |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | $ | 6.4 |  |  | $ | 0.2 |  |  |
Total Regulatory Assets Currently Earning a Return |  | 6.4 |  |  | 0.2 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Asset Retirement Obligation Costs (a) |  | 74.0 |  |  | — |  |  |
NOLC Costs - Indiana (b) |  | 26.7 |  |  | — |  |  |
Storm-Related Costs - Indiana |  | 6.3 |  |  | 29.7 |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 1.6 |  |  | 3.3 |  |  |
Total Regulatory Assets Currently Not Earning a Return |  | 108.6 |  |  | 33.0 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 115.0 |  |  | 33.2 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Unrecovered Plant |  | 98.0 |  |  | 122.5 |  |  | 4 years
Rockport Plant Dry Sorbent Injection System and Selective Catalytic Reduction |  | 37.3 |  |  | 46.9 |  |  | 4 years
Cook Plant Uprate Project |  | 20.5 |  |  | 22.9 |  |  | 9 years
Deferred Cook Plant Life Cycle Management Project Costs - Michigan, FERC |  | 10.1 |  |  | 11.1 |  |  | 10 years
Cook Plant Turbine - Indiana |  | 7.8 |  |  | 8.4 |  |  | 14 years
Other Regulatory Assets Approved for Recovery |  | 21.1 |  |  | 17.5 |  |  | various
Total Regulatory Assets Currently Earning a Return |  | 194.8 |  |  | 229.3 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Income Taxes, Net |  | 108.8 |  |  | — |  |  | (c)
Cook Plant Nuclear Refueling Outage Levelization |  | 43.0 |  |  | 55.7 |  |  | 3 years
Storm-Related Costs - Indiana |  | 20.2 |  |  | 3.4 |  |  | 4 years
Pension and OPEB Funded Status |  | 14.6 |  |  | 25.4 |  |  | 12 years
Excess SO 2 Allowance Inventory - Indiana |  | 11.9 |  |  | 14.8 |  |  | 4 years
Unamortized Loss on Reacquired Debt |  | 10.9 |  |  | 11.8 |  |  | 24 years
Postemployment Benefits |  | 7.3 |  |  | 7.0 |  |  | 3 years
Environmental Cost Rider - Indiana |  | 1.4 |  |  | 8.1 |  |  | 2 years
Other Regulatory Assets Approved for Recovery |  | 20.2 |  |  | 17.6 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 238.3 |  |  | 143.8 |  |  |
Total Regulatory Assets Approved for Recovery |  | 433.1 |  |  | 373.1 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 548.1 |  |  | $ | 406.3 |  |  |
(a)See “Federal EPA’s Revised CCR Rule” section of Note 6 for additional information. (b)In the second quarter of 2024, a request seeking to establish a recovery mechanism for these regulatory assets were filed in Indiana. Certain intervenors have challenged the recovery, or have proposed ratemaking treatment that would offset the recovery, of the regulatory assets. In the fourth quarter of 2024, a hearing on the merits was held in Indiana. (c)Recovered over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $12 million for the year ended December 31, 2024 and is to be refunded over 4 years.
|  | I&M
|  | December 31, |  | Remaining Refund Period
Regulatory Liabilities: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Current Regulatory Liabilities |  |  |  |  |  |
Over-recovered Fuel Costs, Indiana - does not pay a return |  | $ | 10.3 |  |  | $ | 23.2 |  |  | 1 year
Total Current Regulatory Liabilities |  | $ | 10.3 |  |  | $ | 23.2 |  |  |
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Income Taxes, Net (a) (b) |  | $ | — |  |  | $ | (103.0) |  |  |
Total Regulatory Liabilities Currently Paying a Return |  | — |  |  | (103.0) |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
FERC 2021 Transmission Formula Rate Challenge Refunds |  | 28.9 |  |  | 22.8 |  |  |
Cook Plant PTC Deferral - Michigan |  | 14.5 |  |  | — |  |  |
Total Regulatory Liabilities Currently Not Paying a Return |  | 43.4 |  |  | 22.8 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 43.4 |  |  | (80.2) |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 174.2 |  |  | 168.1 |  |  | (c)
Renewable Energy Surcharge - Michigan |  | 24.3 |  |  | 26.6 |  |  | 2 years
Income Taxes, Net (a) |  | — |  |  | 116.8 |  |  | (d)
Other Regulatory Liabilities Approved for Payment |  | 0.1 |  |  | 0.1 |  |  | various
Total Regulatory Liabilities Currently Paying a Return |  | 198.6 |  |  | 311.6 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Excess Nuclear Decommissioning Funding |  | 2,137.3 |  |  | 1,721.9 |  |  | (e)
Spent Nuclear Fuel |  | 50.4 |  |  | 47.6 |  |  | (e)
Demand Side Management - Indiana |  | 33.0 |  |  | 16.7 |  |  | 2 years
Deferred Investment Tax Credits |  | 13.8 |  |  | 15.8 |  |  | 26 years
PJM Costs and Off-system Sales Margin Sharing - Indiana |  | 2.0 |  |  | 14.1 |  |  | 1 year
Other Regulatory Liabilities Approved for Payment |  | 2.3 |  |  | 4.8 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 2,238.8 |  |  | 1,820.9 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 2,437.4 |  |  | 2,132.5 |  |  |
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  | $ | 2,480.8 |  |  | $ | 2,052.3 |  |  |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)Represents an income tax related regulatory asset, which is presented within net regulatory liabilities on the balance sheet. (c)Relieved as removal costs are incurred. (d)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements was $25 million for the year ended December 31, 2023. (e)Relieved when plant is decommissioned.
|  | OPCo
|  | December 31, |  | Remaining Recovery Period
Regulatory Assets: |  | 2024 |  | 2023 |
|  | (in millions) |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | $ | 0.4 |  |  | $ | — |  |  |
Total Regulatory Assets Currently Earning a Return |  | 0.4 |  |  | — |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 0.1 |  |  | — |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 0.1 |  |  | 23.6 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 0.5 |  |  | 23.6 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Ohio Basic Transmission Cost Rider |  | 26.1 |  |  | 42.2 |  |  | 2 years
Ohio Distribution Decoupling |  | — |  |  | 1.8 |  |  |
Total Regulatory Assets Currently Earning a Return |  | 26.1 |  |  | 44.0 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Pension and OPEB Funded Status |  | 134.0 |  |  | 147.1 |  |  | 12 years
OVEC Purchased Power |  | 52.0 |  |  | 50.1 |  |  | 2 years
Unrealized Loss on Forward Commitments |  | 47.6 |  |  | 50.8 |  |  | 8 years
Smart Grid Costs |  | 33.8 |  |  | 26.3 |  |  | 2 years
Storm-Related Costs |  | 28.6 |  |  | 30.9 |  |  | 2 years
Ohio Enhanced Service Reliability Plan |  | 26.2 |  |  | 35.3 |  |  | 2 years
Bad Debt Rider |  | 13.7 |  |  | 0.7 |  |  | 2 years
Ohio Distribution Investment Rider |  | 11.0 |  |  | 35.3 |  |  | 2 years
Other Regulatory Assets Approved for Recovery |  | 5.6 |  |  | 10.9 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 352.5 |  |  | 387.4 |  |  |
Total Regulatory Assets Approved for Recovery |  | 378.6 |  |  | 431.4 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 379.1 |  |  | $ | 455.0 |  |  |
|  | OPCo
|  | December 31, |  | Remaining Refund Period
|  | 2024 |  | 2023 |
Regulatory Liabilities: |  | (in millions) |  |
Noncurrent Regulatory Liabilities |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
FERC 2021 Transmission Formula Rate Challenge Refunds |  | $ | 72.7 |  |  | $ | 57.0 |  |  |
Other Regulatory Liabilities Pending Final Regulatory Determination |  | 0.2 |  |  | 0.2 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 72.9 |  |  | 57.2 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 480.0 |  |  | 475.5 |  |  | (a)
Income Taxes, Net (b) |  | 367.6 |  |  | 408.2 |  |  | (c)
Other Regulatory Liabilities Approved for Payment |  | 4.0 |  |  | — |  |  |
Total Regulatory Liabilities Currently Paying a Return |  | 851.6 |  |  | 883.7 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Over-recovered Fuel Costs |  | 32.1 |  |  | 26.1 |  |  | 8 years
Peak Demand Reduction/Energy Efficiency |  | 22.8 |  |  | 23.2 |  |  | 2 years
Other Regulatory Liabilities Approved for Payment |  | 8.3 |  |  | 13.4 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 63.2 |  |  | 62.7 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 914.8 |  |  | 946.4 |  |  |
Total Noncurrent Regulatory Liabilities |  | $ | 987.7 |  |  | $ | 1,003.6 |  |  |
(a)Relieved as removal costs are incurred. (b)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $100 million and $132 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 4 years.
|  | PSO
|  | December 31, |  | Remaining Recovery Period
|  | 2024 |  | 2023 |
Regulatory Assets: |  | (in millions) |  |
Current Regulatory Assets |  |  |  |  |  |
Under-recovered Fuel Costs - earns a return |  | $ | 64.7 |  |  | $ | 118.3 |  |  | 1 year
Total Current Regulatory Assets |  | $ | 64.7 |  |  | $ | 118.3 |  |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
NOLC - Costs (a) |  | $ | 16.4 |  |  | $ | — |  |  |
Storm-Related Costs |  | 4.9 |  |  | 88.5 |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 9.0 |  |  | 0.2 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 30.3 |  |  | 88.7 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Plant Retirement Costs - Unrecovered Plant (b) |  | 274.0 |  |  | 254.1 |  |  | 22 years
Storm-Related Costs |  | 106.7 |  |  | 26.2 |  |  | 7 years
Environmental Control Projects |  | 21.2 |  |  | 22.5 |  |  | 16 years
Meter Replacement Costs |  | 10.1 |  |  | 14.1 |  |  | 3 years
Other Regulatory Assets Approved for Recovery |  | 13.4 |  |  | 8.4 |  |  | various
Total Regulatory Assets Currently Earning a Return |  | 425.4 |  |  | 325.3 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Pension and OPEB Funded Status |  | 57.6 |  |  | 62.6 |  |  | 12 years
Unrealized Loss on Forward Commitments |  | 3.9 |  |  | 29.9 |  |  | 2 years
Other Regulatory Assets Approved for Recovery |  | 10.6 |  |  | 16.2 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 72.1 |  |  | 108.7 |  |  |
Total Regulatory Assets Approved for Recovery |  | 497.5 |  |  | 434.0 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 527.8 |  |  | $ | 522.7 |  |  |
(a)In the second quarter of 2024, a request seeking to establish a recovery mechanism for these regulatory assets was filed in Oklahoma. Certain intervenors have challenged the recovery, or have proposed ratemaking treatment that would offset the recovery, of the regulatory assets. In the fourth quarter of 2024 and in January 2025 hearings on the merits were held. (b)Northeastern Plant, Unit 3 is approved for recovery through 2040, but expected to retire in 2026. PSO records a regulatory asset for accelerated depreciation. See “Regulated Generating Units to be Retired” section above for additional information.
|  | PSO
|  | December 31, |  | Remaining Refund Period
|  | 2024 |  | 2023 |
Regulatory Liabilities: |  | (in millions) |  |
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
FERC 2021 Transmission Formula Rate Challenge Refunds |  | $ | 1.6 |  |  | $ | 1.2 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 1.6 |  |  | 1.2 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 323.6 |  |  | 317.5 |  |  | (b)
Income Taxes, Net (a) |  | 318.0 |  |  | 395.7 |  |  | (c)
Total Regulatory Liabilities Currently Paying a Return |  | 641.6 |  |  | 713.2 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Deferred Investment Tax Credits |  | 46.2 |  |  | 47.2 |  |  | 12 years
Other Regulatory Liabilities Approved for Payment |  | 0.3 |  |  | 4.0 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 46.5 |  |  | 51.2 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 688.1 |  |  | 764.4 |  |  |
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  | $ | 689.7 |  |  | $ | 765.6 |  |  |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)Relieved as removal costs are incurred. (c)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets. Excess ADIT that is Not Subject to Rate Normalization Requirements were $46 million and $51 million for the years ended December 31, 2024 and 2023, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2024 is to be refunded over 10 year.
|  | SWEPCo
|  | December 31, |  | Remaining Recovery Period
|  | 2024 |  | 2023 |
Regulatory Assets: |  | (in millions) |  |
Current Regulatory Assets |  |  |  |  |  |
Unrecovered Winter Storm Fuel Costs - earns a return (a) |  | $ | 84.2 |  |  | $ | 93.9 |  |  | 1 year
Under-recovered Fuel Costs - earns a return (b) |  | 22.4 |  |  | 76.9 |  |  | 1 year
Total Current Regulatory Assets |  | $ | 106.6 |  |  | $ | 170.8 |  |  |
Noncurrent Regulatory Assets |  |  |  |  |  |
Regulatory assets pending final regulatory approval: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Welsh Plant, Units 1 and 3 Accelerated Depreciation |  | $ | 168.6 |  |  | $ | 125.6 |  |  |
Pirkey Plant Accelerated Depreciation |  | 121.3 |  |  | 114.4 |  |  |
Unrecovered Winter Storm Fuel Costs (a) |  | 33.5 |  |  | 60.1 |  |  |
Dolet Hills Power Station Accelerated Depreciation (c) |  | 11.8 |  |  | 12.0 |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 10.8 |  |  | 26.0 |  |  |
Total Regulatory Assets Currently Earning a Return |  | 346.0 |  |  | 338.1 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
NOLC - Costs (d) |  | 49.6 |  |  | — |  |  |
Storm-Related Costs - Louisiana, Texas |  | 39.9 |  |  | 56.0 |  |  |
Other Regulatory Assets Pending Final Regulatory Approval |  | 18.7 |  |  | 13.7 |  |  |
Total Regulatory Assets Currently Not Earning a Return |  | 108.2 |  |  | 69.7 |  |  |
Total Regulatory Assets Pending Final Regulatory Approval |  | 454.2 |  |  | 407.8 |  |  |
Regulatory assets approved for recovery: |  |  |  |  |  |
Regulatory Assets Currently Earning a Return |  |  |  |  |  |
Fuel Mine Closure Costs - Texas |  | 70.6 |  |  | 74.3 |  |  | 11 years
Pirkey Plant Accelerated Depreciation - Louisiana |  | 66.4 |  |  | 65.8 |  |  | 8 years
Unrecovered Winter Storm Fuel Costs (b) |  | 62.8 |  |  | 99.3 |  |  | 3 years
Plant Retirement Costs - Unrecovered Plant, Arkansas |  | 40.2 |  |  | 44.4 |  |  | 18 years
Dolet Hills Power Station Fuel Costs - Louisiana |  | 21.7 |  |  | — |  |  | 3 years
Plant Retirement Costs - Unrecovered Plant, Dolet Hills Power Station - Louisiana |  | 19.0 |  |  | 40.8 |  |  | 8 years
Storm-Related Costs - Louisiana (e) |  | — |  |  | 144.7 |  |  |
Other Regulatory Assets Approved for Recovery |  | 12.6 |  |  | 13.8 |  |  | various
Total Regulatory Assets Currently Earning a Return |  | 293.3 |  |  | 483.1 |  |  |
Regulatory Assets Currently Not Earning a Return |  |  |  |  |  |
Pension and OPEB Funded Status |  | 93.2 |  |  | 109.2 |  |  | 12 years
Plant Retirement Costs - Unrecovered Plant, Texas |  | 44.5 |  |  | 48.7 |  |  | 22 years
Plant Retirement Costs - Unrecovered Plant, Arkansas |  | 12.8 |  |  | 17.3 |  |  | 3 years
Unrealized Loss on Forward Commitments |  | 1.2 |  |  | 15.4 |  |  | 3 years
North Central Wind Rider |  | — |  |  | 20.2 |  |  |
Other Regulatory Assets Approved for Recovery |  | 22.1 |  |  | 30.1 |  |  | various
Total Regulatory Assets Currently Not Earning a Return |  | 173.8 |  |  | 240.9 |  |  |
Total Regulatory Assets Approved for Recovery |  | 467.1 |  |  | 724.0 |  |  |
Total Noncurrent Regulatory Assets |  | $ | 921.3 |  |  | $ | 1,131.8 |  |  |
(a)See “February 2021 Severe Winter Weather Impacts in SPP” section of Note 4 for additional information. (b)2024 amount related to Arkansas, Louisiana and Texas jurisdictions. 2023 amount related to Arkansas and Texas jurisdictions. (c)Amounts include the FERC jurisdiction. (d)In the second quarter of 2024, a request seeking to establish a recovery mechanism for the Texas jurisdictional share of these regulatory assets was filed in Texas. In the third quarter of 2024, PUCT Staff and certain intervenors in Texas requested a hearing and direct testimony was filed by SWEPCo in October 2024. A hearing is scheduled for the first quarter of 2025 in Texas. (e)In July 2024, the LPSC approved SWEPCo’s securitization of storm costs for Hurricanes Laura and Delta, as well as a storm reserve. See “2021 Louisiana Storm Cost Filing” section of Note 4 for additional information.
|  | SWEPCo
|  | December 31, |  | Remaining Refund Period
|  | 2024 |  | 2023 |
Regulatory Liabilities: |  | (in millions) |  |
Current Regulatory Liabilities |  |  |  |  |  |
Over-recovered Fuel Costs - pays a return (a) |  | $ | 21.6 |  |  | $ | 3.3 |  |  | 1 year
Total Current Regulatory Liabilities |  | $ | 21.6 |  |  | $ | 3.3 |  |  |
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  |  |  |  |  |
Regulatory liabilities pending final regulatory determination: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Income Taxes, Net (b) |  | $ | 7.0 |  |  | $ | 7.0 |  |  |
Total Regulatory Liabilities Pending Final Regulatory Determination |  | 7.0 |  |  | 7.0 |  |  |
Regulatory liabilities approved for payment: |  |  |  |  |  |
Regulatory Liabilities Currently Paying a Return |  |  |  |  |  |
Asset Removal Costs |  | 456.6 |  |  | 443.2 |  |  | (c)
Income Taxes, Net (b) |  | 127.5 |  |  | 292.4 |  |  | (d)
Other Regulatory Liabilities Approved for Payment |  | 7.3 |  |  | 4.4 |  |  | various
Total Regulatory Liabilities Currently Paying a Return |  | 591.4 |  |  | 740.0 |  |  |
Regulatory Liabilities Currently Not Paying a Return |  |  |  |  |  |
Other Regulatory Liabilities Approved for Payment |  | 12.4 |  |  | 9.1 |  |  | various
Total Regulatory Liabilities Currently Not Paying a Return |  | 12.4 |  |  | 9.1 |  |  |
Total Regulatory Liabilities Approved for Payment |  | 603.8 |  |  | 749.1 |  |  |
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits |  | $ | 610.8 |  |  | $ | 756.1 |  |  |
(a)2024 amount related to Texas jurisdiction. 2023 amount related to Louisiana jurisdiction. (b)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (c)Relieved as removal costs are incurred. (d)Refunded over the period for which the related deferred income tax reverse, which is generally based on the expected life for the underlying assets. Excess ADIT Associated with Certain Depreciable Property is refunded over the remaining depreciable life of the underlying assets.

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- Definition The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit. + References No definition available. + Details
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