| Effects of Regulation |
EFFECTS OF REGULATION The disclosures in this note apply to all Registrants unless indicated otherwise.
Coal-Fired Generation Plants (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 which has resulted in, and in the future may result in, a decision to retire coal-fired 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 materially 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. 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. See “2020 Texas Base Rate Case” and “2020 Louisiana Base Rate Case” sections of Note 4 for additional information.
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 proposal for decision that concluded the decision to retire the Pirkey Plant was prudent. In September 2023, the PUCT rejected the ALJs proposal for decision concluding the retirement of the Pirkey Plant was prudent. 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, 2023, the Texas jurisdictional share of the net book value of the Pirkey Plant was $67 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. As part of the 2022 Oklahoma Base Rate Case, PSO will continue 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.
The table below summarizes the net book value including CWIP, before cost of removal and materials and supplies, as of December 31, 2023, 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 | | | | | | $ | 104.5 | | | $ | 164.2 | | | | | $ | 20.5 | | (b) | | 2026 | | (c) | | $ | 15.0 | | | Welsh Plant, Units 1 and 3 | | | | | | 352.0 | | | 125.6 | | | | | 58.2 | | (d) | | 2028 | (e) | (f) | | 38.6 | |
(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, units are being evaluated for conversion to natural gas after 2028. (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, 2023, SWEPCo’s share of the net investment in the Dolet Hills Power Station was $103 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, 2023, SWEPCo had a net under-recovered fuel balance of $77 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. Management believes its financial statements adequately address the impact of the LPSC staff and ALJ recommendations. A decision from the LPSC is expected in the first quarter of 2024.
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, 2023, SWEPCo’s share of the net investment in the Pirkey Plant was $182 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, 2023, SWEPCo had a net under-recovered fuel balance of $77 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 September 2023, the PUCT approved an unopposed settlement agreement that provides recovery of $33 million of Sabine related fuel costs through 2035.
If any of these costs are not recoverable, 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 | | | 2023 | | 2022 | | | Current Regulatory Assets | | (in millions) | | | | Under-recovered Fuel Costs - earns a return | | $ | 357.4 | | | $ | 625.7 | | | 1 year | | Under-recovered Fuel Costs - does not earn a return | | 62.7 | | | 588.5 | | | 1 year | | Unrecovered Winter Storm Fuel Costs - earns a return (a) | | 93.9 | | | 95.8 | | | 1 year | | Total Current Regulatory Assets | | $ | 514.0 | | | $ | 1,310.0 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | Welsh Plant, Units 1 and 3 Accelerated Depreciation | | $ | 125.6 | | | $ | 85.6 | | | | | Pirkey Plant Accelerated Depreciation | | 114.4 | | | 116.5 | | | | | Unrecovered Winter Storm Fuel Costs (a) | | 60.1 | | | 84.6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 49.8 | | | 68.9 | | | | | Total Regulatory Assets Currently Earning a Return | | 349.9 | | | 355.6 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Storm-Related Costs | | 408.9 | | | 407.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2020-2022 Virginia Triennial Under-Earnings | | — | | | 37.9 | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 78.5 | | | 81.5 | | | | | Total Regulatory Assets Currently Not Earning a Return | | 487.4 | | | 526.5 | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 837.3 | | | 882.1 | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Plant Retirement Costs - Unrecovered Plant (b) | | 664.2 | | | 689.9 | | | 23 years | | Long-term Under-recovered Fuel Costs - West Virginia | | 291.5 | | | — | | | 11 years | | Storm-Related Costs | | 170.9 | | | 8.4 | | | 5 years | | Plant Retirement Costs - Asset Retirement Obligation Costs | | 110.8 | | | 110.6 | | | 19 years | | Long-term Under-recovered Fuel Costs - Virginia | | 107.0 | | | 223.3 | | | 2 years | | Unrecovered Winter Storm Fuel Costs (a) | | 99.3 | | | 148.6 | | | 4 years | | Fuel Mine Closure Costs - Texas | | 74.3 | | | — | | | 12 years | | Pirkey Plant Accelerated Depreciation - Louisiana | | 65.8 | | | 63.0 | | | 9 years | | Rockport Plant Dry Sorbent Injection System and Selective Catalytic Reduction | | 46.9 | | | 56.6 | | | 5 years | | Kentucky Deferred Purchased Power Expenses | | 43.5 | | | 53.0 | | | 4 years | | Ohio Basic Transmission Cost Rider | | 42.2 | | | 14.3 | | | 2 years | | Plant Retirement Costs - Unrecovered Plant, Dolet Hills Power Station, Louisiana | | 40.8 | | | 45.1 | | | 9 years | | Texas Mobile Temporary Emergency Electric Energy Facilities Rider | | 33.4 | | | — | | | 2 years | | Environmental Control Projects | | 31.4 | | | 33.9 | | | 17 years | | Meter Replacement Costs | | 23.5 | | | 34.2 | | | 4 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Long-term Under-recovered Fuel Costs - Oklahoma | | — | | | 252.7 | | | | | Other Regulatory Assets Approved for Recovery | | 101.4 | | | 125.0 | | | various | | Total Regulatory Assets Currently Earning a Return | | 1,946.9 | | | 1,858.6 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Pension and OPEB Funded Status | | 1,054.1 | | | 975.4 | | | 12 years | | Plant Retirement Costs - Asset Retirement Obligation Costs | | 330.2 | | | 308.5 | | | 19 years | | Unrealized Loss on Forward Commitments | | 131.4 | | | 40.1 | | | 9 years | | Unamortized Loss on Reacquired Debt | | 97.2 | | | 104.1 | | | 25 years | | Fuel and Purchased Power Adjustment Rider | | 68.3 | | | 76.3 | | | 2 years | | Cook Plant Nuclear Refueling Outage Levelization | | 55.7 | | | 81.2 | | | 2 years | | OVEC Purchased Power | | 50.1 | | | — | | | 2 years | | Plant Retirement Costs - Unrecovered Plant, Texas | | 48.7 | | | 51.7 | | | 23 years | | Storm-Related Costs | | 38.5 | | | 11.9 | | | 2 years | | 2020-2022 Virginia Triennial Under Earnings | | 37.4 | | | — | | | 4 years | | Ohio Enhanced Service Reliability Plan | | 35.3 | | | 33.3 | | | 2 years | | Ohio Distribution Investment Rider | | 35.3 | | | 2.3 | | | 2 years | | Postemployment Benefits | | 30.6 | | | 32.1 | | | 3 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Peak Demand Reduction/Energy Efficiency | | 23.9 | | | 41.7 | | | 3 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 271.5 | | | 262.7 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 2,308.2 | | | 2,021.3 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 4,255.1 | | | 3,879.9 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 5,092.4 | | | $ | 4,762.0 | | | |
(a)See “February 2021 Severe Winter Weather Impacts in SPP” section of SWEPCo Rate Matters in Note 4 for additional information. (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. | | | | | | | | | | | | | | | | | | | | | | | AEP | | | December 31, | | Remaining | | | 2023 | | 2022 | | Refund Period | | Current Regulatory Liabilities | | (in millions) | | | | Over-recovered Fuel Costs - pays a return | | $ | 3.3 | | | $ | 1.4 | | | 1 year | | Over-recovered Fuel Costs - does not pay a return | | 23.2 | | | — | | | 1 year | | Total Current Regulatory Liabilities | | $ | 26.5 | | | $ | 1.4 | | | | | | | | | | | Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits | | | | | | | | Regulatory liabilities pending final regulatory determination: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Income Taxes, Net (a) | | $ | 103.1 | | | $ | 149.7 | | | | | | | | | | | | Total Regulatory Liabilities Currently Paying a Return | | 103.1 | | | 149.7 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | FERC 2021 Transmission Formula Rate Challenge Refunds | | 103.1 | | | — | | | | | Other Regulatory Liabilities Pending Final Regulatory Determination | | 1.7 | | | 4.1 | | | | | Total Regulatory Liabilities Currently Not Paying a Return | | 104.8 | | | 4.1 | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | 207.9 | | | 153.8 | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Asset Removal Costs | | 3,563.5 | | | 3,392.4 | | | (b) | | Income Taxes, Net (a) | | 2,179.7 | | | 2,504.5 | | | (c) | | Rockport Plant, Unit 2 Accelerated Depreciation for Leasehold Improvements | | 44.9 | | | 53.8 | | | 5 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 35.0 | | | 32.7 | | | various | | Total Regulatory Liabilities Currently Paying a Return | | 5,823.1 | | | 5,983.4 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | Excess Nuclear Decommissioning Funding | | 1,721.9 | | | 1,318.5 | | | (d) | | Deferred Investment Tax Credits | | 154.5 | | | 237.3 | | | 31 years | | Spent Nuclear Fuel | | 47.6 | | | 45.8 | | | (d) | | 2017-2019 Virginia Triennial Revenue Provision | | 37.1 | | | 39.1 | | | 26 years | | Demand Side Management | | 31.3 | | | 15.7 | | | 2 years | | | | | | | | | Over-recovered Fuel Costs - Ohio | | 26.1 | | | 32.2 | | | 9 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | PJM Transmission Enhancement Refund | | 22.8 | | | 34.1 | | | 2 years | | PJM Costs and Off-system Sales Margin Sharing - Indiana | | 14.1 | | | 34.2 | | | 2 years | | OVEC Purchased Power | | — | | | 47.1 | | | | | Unrealized Gain on Forward Commitments | | — | | | 45.2 | | | | | Other Regulatory Liabilities Approved for Payment | | 96.0 | | | 129.2 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 2,151.4 | | | 1,978.4 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 7,974.5 | | | 7,961.8 | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 8,182.4 | | | $ | 8,115.6 | | | |
(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 $228 million and $277 million for the years ended December 31, 2023 and 2022, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2023 is to be refunded over 5 years. (d)Relieved when plant is decommissioned. | | | | | | | | | | | | | | | | | | | | | | | AEP Texas | | | December 31, | | Remaining
Recovery
Period | | Regulatory Assets: | | 2023 | | 2022 | | | | (in millions) | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Texas Mobile Generation Lease Payments | | $ | — | | | $ | 17.6 | | | | | | | | | | | | | | | | | | | Total Regulatory Assets Currently Earning a Return | | — | | | 17.6 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Storm-Related Costs | | 37.7 | | | 26.7 | | | | | Line Inspection Costs | | 5.7 | | | 4.5 | | | | | Vegetation Management Program | | 5.2 | | | 5.2 | | | | | Texas Retail Electric Provider Bad Debt Expense | | 4.0 | | | 4.1 | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 11.7 | | | 8.9 | | | | | Total Regulatory Assets Currently Not Earning a Return | | 64.3 | | | 49.4 | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 64.3 | | | 67.0 | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Texas Mobile Temporary Emergency Electric Energy Facilities Rider | | 33.4 | | | — | | | 2 years | | Meter Replacement Costs | | 9.4 | | | 16.1 | | | 2 years | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 0.7 | | | 1.4 | | | various | | Total Regulatory Assets Currently Earning a Return | | 43.5 | | | 17.5 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Pension and OPEB Funded Status | | 183.2 | | | 173.2 | | | 12 years | | | | | | | | | Peak Demand Reduction/Energy Efficiency | | 9.2 | | | 11.9 | | | 2 years | | Vegetation Management Program | | 6.8 | | | 12.1 | | | 2 years | | Storm-Related Costs | | 4.3 | | | 8.5 | | | 2 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 4.0 | | | 8.1 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 207.5 | | | 213.8 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 251.0 | | | 231.3 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 315.3 | | | $ | 298.3 | | | |
| | | | | | | | | | | | | | | | | | | | | | | AEP Texas | | | December 31, | | Remaining
Refund
Period | | Regulatory Liabilities: | | 2023 | | 2022 | | | | (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 | | | $ | 13.0 | | | | | | | | | | | | Total Regulatory Liabilities Currently Paying a Return | | 13.0 | | | 13.0 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | Other Regulatory Liabilities Pending Final Regulatory Determination | | 1.5 | | | 1.8 | | | | | Total Regulatory Liabilities Currently Not Paying a Return | | 1.5 | | | 1.8 | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | 14.5 | | | 14.8 | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Asset Removal Costs | | 797.1 | | | 766.8 | | | (b) | | Income Taxes, Net (a) | | 412.0 | | | 431.6 | | | (c) | | | | | | | | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 3.8 | | | 4.3 | | | various | | Total Regulatory Liabilities Currently Paying a Return | | 1,212.9 | | | 1,202.7 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | Transition and Restoration Charges | | 26.6 | | | 29.4 | | | 6 years | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 7.4 | | | 12.7 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 34.0 | | | 42.1 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 1,246.9 | | | 1,244.8 | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 1,261.4 | | | $ | 1,259.6 | | | |
(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. | | | | | | | | | | | | | | | | | | | | | | | AEPTCo | | | December 31, | | Remaining
Recovery
Period | | Regulatory Assets: | | 2023 | | 2022 | | | | (in millions) | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | PJM/SPP Annual Formula Rate True-up | | $ | 3.1 | | | $ | 7.2 | | | 2 years | | Total Regulatory Assets Approved for Recovery | | 3.1 | | | 7.2 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 3.1 | | | $ | 7.2 | | | |
| | | | | | | | | | | | | | | | | | | | | | | AEPTCo | | | December 31, | | Remaining
Refund
Period | | Regulatory Liabilities: | | 2023 | | 2022 | | | | (in millions) | | | | Noncurrent Regulatory Liabilities | | | | | | | | Regulatory liabilities pending final regulatory determination: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | Income Taxes, Net (a) | | $ | 8.7 | | | $ | 8.7 | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | 8.7 | | | 8.7 | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Asset Removal Costs | | 466.3 | | | 358.8 | | | (b) | | Income Taxes, Net (a) | | 308.7 | | | 355.8 | | | (c) | | | | | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 775.0 | | | 714.6 | | | | | | | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities | | $ | 783.7 | | | $ | 723.3 | | | |
(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 $13 million and $16 million for the years ended December 31, 2023 and 2022, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2023 is to be refunded over 5 years. | | | | | | | | | | | | | | | | | | | | | | | APCo | | | December 31, | | Remaining
Recovery
Period | | Regulatory Assets: | | 2023 | | 2022 | | | | (in millions) | | | | Current Regulatory Assets | | | | | | | | Under-recovered Fuel Costs - earns a return | | $ | 147.4 | | | $ | 180.7 | | | 1 year | | Under-recovered Fuel Costs - does not earn a return | | 8.0 | | | 292.4 | | | 1 year | | Total Current Regulatory Assets | | $ | 155.4 | | | $ | 473.1 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | $ | 0.6 | | | $ | 7.0 | | | | | | | | | | | | Total Regulatory Assets Currently Earning a Return | | 0.6 | | | 7.0 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Storm-Related Costs - West Virginia | | 91.5 | | | 72.6 | | | | | Plant Retirement Costs - Asset Retirement Obligation Costs | | 25.9 | | | 25.9 | | | | | | | | | | | | | | | | | | | | | | | | | | 2020-2022 Virginia Triennial Under-Earnings | | — | | | 37.9 | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 7.5 | | | 1.1 | | | | | | | | | | | | | | | | | | | | | | | | | | Total Regulatory Assets Currently Not Earning a Return | | 124.9 | | | 137.5 | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 125.5 | | | 144.5 | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Long-term Under-recovered Fuel Costs - West Virginia | | 154.2 | | | — | | | 11 years | | Long-term Under-recovered Fuel Costs - Virginia | | 107.0 | | | 223.3 | | | 2 years | | Plant Retirement Costs - Unrecovered Plant | | 72.0 | | | 75.6 | | | 20 years | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 7.1 | | | 0.4 | | | various | | Total Regulatory Assets Currently Earning a Return | | 340.3 | | | 299.3 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Plant Retirement Costs - Asset Retirement Obligation Costs | | 324.7 | | | 303.1 | | | 15 years | | Pension and OPEB Funded Status | | 115.8 | | | 108.3 | | | 12 years | | Unamortized Loss on Reacquired Debt | | 70.7 | | | 74.4 | | | 22 years | | | | | | | | | 2020-2022 Virginia Triennial Under-Earnings | | 37.4 | | | — | | | 4 years | | Virginia Transmission Rate Adjustment Clause | | 25.5 | | | 18.7 | | | 2 years | | Unrealized Loss on Forward Commitments | | 21.9 | | | — | | | 3 years | | Peak Demand Reduction/Energy Efficiency | | 15.0 | | | 15.8 | | | 3 years | | Postemployment Benefits | | 14.9 | | | 13.7 | | | 3 years | | | | | | | | | Vegetation Management Program - West Virginia | | 12.9 | | | 13.7 | | | 2 years | Excess SO2 Allowance Inventory - Virginia | | 11.8 | | | — | | | 9 years | | Virginia Generation Rate Adjustment Clause | | 10.9 | | | 8.0 | | | 2 years | | Virginia Clean Economy Act | | 8.0 | | | 16.7 | | | 2 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2017-2019 Virginia Triennial Under-Earnings | | 2.3 | | | 30.1 | | | 1 year | | Other Regulatory Assets Approved for Recovery | | 17.5 | | | 12.3 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 689.3 | | | 614.8 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 1,029.6 | | | 914.1 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 1,155.1 | | | $ | 1,058.6 | | | |
| | | | | | | | | | | | | | | | | | | | | | | APCo | | | December 31, | | Remaining
Refund
Period | | Regulatory Liabilities: | | 2023 | | 2022 | | | | (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) | | $ | 7.9 | | | $ | 30.5 | | | | | | | | | | | | Total Regulatory Liabilities Currently Paying a Return | | 7.9 | | | 30.5 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | FERC 2021 Transmission Formula Rate Challenge Refunds | | 19.7 | | | — | | | | | Total Regulatory Liabilities Currently Not Paying a Return | | 19.7 | | | — | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | 27.6 | | | 30.5 | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Asset Removal Costs | | 759.6 | | | 713.5 | | | (b) | | Income Taxes, Net (a) | | 240.1 | | | 291.3 | | | (c) | | Deferred Investment Tax Credits | | 0.3 | | | 0.3 | | | 30 years | | Total Regulatory Liabilities Currently Paying a Return | | 1,000.0 | | | 1,005.1 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | 2017-2019 Virginia Triennial Revenue Provision | | 37.1 | | | 39.1 | | | 26 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Over-recovered Deferred Wind Power Costs - Virginia | | 2.6 | | | 13.6 | | | 2 years | | Unrealized Gain on Forward Commitments | | — | | | 34.5 | | | | | Other Regulatory Liabilities Approved for Payment | | 14.6 | | | 20.8 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 54.3 | | | 108.0 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 1,054.3 | | | 1,113.1 | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 1,081.9 | | | $ | 1,143.6 | | | |
(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 $35 million and $19 million for the years ended December 31, 2023 and 2022, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2023 is to be refunded over 5 years. | | | | | | | | | | | | | | | | | | | | | | | I&M | | | December 31, | | Remaining
Recovery
Period | | Regulatory Assets: | | 2023 | | 2022 | | | | (in millions) | | | | Current Regulatory Assets | | | | | | | | Under-recovered Fuel Costs, Michigan - earns a return | | $ | 14.8 | | | $ | 9.0 | | | 1 year | | Under-recovered Fuel Costs, Indiana - does not earn a return | | — | | | 38.1 | | | | | Total Current Regulatory Assets | | $ | 14.8 | | | $ | 47.1 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | $ | 0.2 | | | $ | 0.1 | | | | | Total Regulatory Assets Currently Earning a Return | | 0.2 | | | 0.1 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Storm-Related Costs - Indiana | | 29.7 | | | 21.6 | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 3.3 | | | 2.0 | | | | | Total Regulatory Assets Currently Not Earning a Return | | 33.0 | | | 23.6 | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 33.2 | | | 23.7 | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Plant Retirement Costs - Unrecovered Plant | | 122.5 | | | 147.0 | | | 5 years | | Rockport Plant Dry Sorbent Injection System and Selective Catalytic Reduction | | 46.9 | | | 56.6 | | | 5 years | | Cook Plant Uprate Project | | 22.9 | | | 25.3 | | | 10 years | | Deferred Cook Plant Life Cycle Management Project Costs - Michigan, FERC | | 11.1 | | | 12.1 | | | 11 years | | Cook Plant Turbine - Indiana | | 8.4 | | | 9.0 | | | 15 years | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 17.5 | | | 20.6 | | | various | | Total Regulatory Assets Currently Earning a Return | | 229.3 | | | 270.6 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Cook Plant Nuclear Refueling Outage Levelization | | 55.7 | | | 81.2 | | | 2 years | | Pension and OPEB Funded Status | | 25.4 | | | 26.9 | | | 12 years | Excess SO2 Allowance Inventory - Indiana | | 14.8 | | | — | | | 5 years | | Unamortized Loss on Reacquired Debt | | 11.8 | | | 12.9 | | | 25 years | | Environmental Cost Rider - Indiana | | 8.1 | | | 6.6 | | | 2 years | | Postemployment Benefits | | 7.0 | | | 7.7 | | | 3 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Demand Side Management - Indiana | | — | | | 10.3 | | | | | Other Regulatory Assets Approved for Recovery | | 21.0 | | | 19.7 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 143.8 | | | 165.3 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 373.1 | | | 435.9 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 406.3 | | | $ | 459.6 | | | |
| | | | | | | | | | | | | | | | | | | | | | | I&M | | | December 31, | | Remaining
Refund
Period | | Regulatory Liabilities: | | 2023 | | 2022 | | | | (in millions) | | | | Current Regulatory Liabilities | | | | | | | | | | | | | | | Over-recovered Fuel Costs, Indiana - does not pay a return | | $ | 23.2 | | | $ | — | | | 1 year | | Total Current Regulatory Liabilities | | $ | 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) | | | $ | (87.7) | | | | | Total Regulatory Liabilities Currently Paying a Return | | (103.0) | | | (87.7) | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | FERC 2021 Transmission Formula Rate Challenge Refunds | | 22.8 | | | — | | | | | Total Regulatory Liabilities Currently Not Paying a Return | | 22.8 | | | — | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | (80.2) | | | (87.7) | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Asset Removal Costs | | 168.1 | | | 170.7 | | | (c) | | Income Taxes, Net (a) | | 116.8 | | | 168.6 | | | (d) | | Renewable Energy Surcharge - Michigan | | 26.6 | | | 23.2 | | | 2 years | | Other Regulatory Liabilities Approved for Payment | | 0.1 | | | 3.0 | | | various | | Total Regulatory Liabilities Currently Paying a Return | | 311.6 | | | 365.5 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | Excess Nuclear Decommissioning Funding | | 1,721.9 | | | 1,318.5 | | | (e) | | | | | | | | | Spent Nuclear Fuel | | 47.6 | | | 45.8 | | | (e) | | Demand Side Management - Indiana | | 16.7 | | | — | | | 2 years | | Deferred Investment Tax Credits | | 15.8 | | | 17.4 | | | 27 years | | PJM Costs and Off-system Sales Margin Sharing - Indiana | | 14.1 | | | 34.2 | | | 2 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 4.8 | | | 8.5 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 1,820.9 | | | 1,424.4 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 2,132.5 | | | 1,789.9 | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 2,052.3 | | | $ | 1,702.2 | | | |
(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 were $25 million and $42 million for the years ended December 31, 2023 and 2022, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2023 is to be refunded over 5 years. (e)Relieved when plant is decommissioned. | | | | | | | | | | | | | | | | | | | | | | | OPCo | | | December 31, | | Remaining
Recovery
Period | | Regulatory Assets: | | 2023 | | 2022 | | | | (in millions) | | | | Current Regulatory Assets | | | | | | | | | | | | | | | Under-recovered Fuel Costs - does not earn a return | | $ | — | | | $ | 3.8 | | | 1 year | | Total Current Regulatory Assets | | $ | — | | | $ | 3.8 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Storm-Related Costs | | $ | 23.6 | | | $ | 33.8 | | | | | | | | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 23.6 | | | 33.8 | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Ohio Basic Transmission Cost Rider | | 42.2 | | | 14.3 | | | 2 years | | Ohio Distribution Decoupling | | 1.8 | | | 19.5 | | | 2 years | | Ohio Economic Development Rider | | — | | | 1.1 | | | | | | | | | | | | Total Regulatory Assets Currently Earning a Return | | 44.0 | | | 34.9 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Pension and OPEB Funded Status | | 147.1 | | | 142.7 | | | 12 years | | Unrealized Loss on Forward Commitments | | 50.8 | | | 40.0 | | | 9 years | | OVEC Purchased Power | | 50.1 | | | — | | | 2 years | | Ohio Enhanced Service Reliability Plan | | 35.3 | | | 33.3 | | | 2 years | | Ohio Distribution Investment Rider | | 35.3 | | | 2.3 | | | 2 years | | Storm-Related Costs | | 30.9 | | | — | | | 1 year | | Smart Grid Costs | | 26.3 | | | 25.4 | | | 2 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 11.6 | | | 14.9 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 387.4 | | | 258.6 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 431.4 | | | 293.5 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 455.0 | | | $ | 327.3 | | | |
| | | | | | | | | | | | | | | | | | | | | | | OPCo | | | December 31, | | Remaining
Refund
Period | | | 2023 | | 2022 | | | 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 | | $ | 57.0 | | | $ | — | | | | | Other Regulatory Liabilities Pending Final Regulatory Determination | | 0.2 | | | 0.2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | 57.2 | | | 0.2 | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Asset Removal Costs | | 475.5 | | | 466.5 | | | (a) | | Income Taxes, Net (b) | | 408.2 | | | 451.9 | | | (c) | | | | | | | | | | | | | | | | Total Regulatory Liabilities Currently Paying a Return | | 883.7 | | | 918.4 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | Over-recovered Fuel Costs | | 26.1 | | | 32.2 | | | 9 years | | Peak Demand Reduction/Energy Efficiency | | 23.2 | | | 23.6 | | | 2 years | | PJM Transmission Enhancement Refund | | 9.8 | | | 14.7 | | | 2 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | OVEC Purchased Power | | — | | | 47.1 | | | | | Other Regulatory Liabilities Approved for Payment | | 3.6 | | | 7.8 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 62.7 | | | 125.4 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 946.4 | | | 1,043.8 | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 1,003.6 | | | $ | 1,044.0 | | | |
(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 $132 million and $162 million for the years ended December 31, 2023 and 2022, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2023 is to be refunded over 5 years.
| | | | | | | | | | | | | | | | | | | | | | | PSO | | | December 31, | | Remaining
Recovery
Period | | | 2023 | | 2022 | | | Regulatory Assets: | | (in millions) | | | | | | | | | | | Current Regulatory Assets | | | | | | | | Under-recovered Fuel Costs - earns a return | | $ | 118.3 | | | $ | 178.7 | | | 1 year | | Total Current Regulatory Assets | | $ | 118.3 | | | $ | 178.7 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | | | Storm-Related Costs | | $ | 88.5 | | | $ | 25.5 | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 0.2 | | | 0.1 | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 88.7 | | | 25.6 | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Plant Retirement Costs - Unrecovered Plant (a) | | 254.1 | | | 240.6 | | | 23 years | | Storm-Related Costs | | 26.2 | | | 8.4 | | | 5 years | | Environmental Control Projects | | 22.5 | | | 23.9 | | | 17 years | | Meter Replacement Costs | | 14.1 | | | 18.1 | | | 4 years | | | | | | | | | | | | | | | | | | | | | | | Long-term Under-recovered Fuel Costs - Oklahoma | | — | | | 252.7 | | | | | Other Regulatory Assets Approved for Recovery | | 8.4 | | | 9.1 | | | various | | Total Regulatory Assets Currently Earning a Return | | 325.3 | | | 552.8 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Pension and OPEB Funded Status | | 62.6 | | | 55.2 | | | 12 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized Loss on Forward Commitments | | 29.9 | | | — | | | 2 years | | Other Regulatory Assets Approved for Recovery | | 16.2 | | | 20.1 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 108.7 | | | 75.3 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 434.0 | | | 628.1 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 522.7 | | | $ | 653.7 | | | |
(a)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 | | | 2023 | | 2022 | | | Regulatory Liabilities: | | (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) | | $ | — | | | $ | 51.3 | | | | | | | | | | | | Total Regulatory Liabilities Currently Paying a Return | | — | | | 51.3 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | FERC 2021 Transmission Formula Rate Challenge Refunds | | 1.2 | | | — | | | | | Total Regulatory Liabilities Currently Not Paying a Return | | 1.2 | | | — | | | | | | | | | | | | Total Regulatory Liabilities Pending Final Regulatory Determination | | 1.2 | | | 51.3 | | | | | | | | | | | | Regulatory liabilities approved for payment: | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | Income Taxes, Net (a) | | 395.7 | | | 380.1 | | | (b) | | Asset Removal Costs | | 317.5 | | | 316.3 | | | (c) | | Total Regulatory Liabilities Currently Paying a Return | | 713.2 | | | 696.4 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | 47.2 | | | 48.2 | | | 18 years | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 4.0 | | | 13.2 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 51.2 | | | 61.4 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 764.4 | | | 757.8 | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 765.6 | | | $ | 809.1 | | | |
(a)Predominately pays a return due to the inclusion of Excess ADIT in rate base. (b)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 $51 million and $21 million for the years ended December 31, 2023 and 2022, respectively. The remaining balance of Excess ADIT that is Not Subject to Rate Normalization Requirements as of December 31, 2023 is to be refunded over 1 year. (c)Relieved as removal costs are incurred. | | | | | | | | | | | | | | | | | | | | | | | SWEPCo | | | December 31, | | Remaining
Recovery
Period | | | 2023 | | 2022 | | | Regulatory Assets: | | (in millions) | | | | | | | | | | | Current Regulatory Assets | | | | | | | | Under-recovered Fuel Costs - earns a return (a) | | $ | 76.9 | | | $ | 257.2 | | | 1 year | | Unrecovered Winter Storm Fuel Costs - earns a return (b) | | 93.9 | | | 95.8 | | | 1 year | | Total Current Regulatory Assets | | $ | 170.8 | | | $ | 353.0 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | Regulatory assets pending final regulatory approval: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Welsh Plant, Units 1 and 3 Accelerated Depreciation | | $ | 125.6 | | | $ | 85.6 | | | | | Pirkey Plant Accelerated Depreciation | | 114.4 | | | 116.5 | | | | | Unrecovered Winter Storm Fuel Costs (b) | | 60.1 | | | 84.6 | | | | | | | | | | | | | | | | | | | Dolet Hills Power Station Accelerated Depreciation (c) | | 12.0 | | | 9.7 | | | | | | | | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 26.0 | | | 34.5 | | | | | Total Regulatory Assets Currently Earning a Return | | 338.1 | | | 330.9 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Storm-Related Costs - Louisiana, Texas | | 56.0 | | | 151.5 | | | | | Asset Retirement Obligation - Louisiana | | — | | | 11.8 | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Pending Final Regulatory Approval | | 13.7 | | | 16.0 | | | | | Total Regulatory Assets Currently Not Earning a Return | | 69.7 | | | 179.3 | | | | | | | | | | | | Total Regulatory Assets Pending Final Regulatory Approval | | 407.8 | | | 510.2 | | | | | | | | | | | | Regulatory assets approved for recovery: | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | Storm-Related Costs - Louisiana | | 144.7 | | | — | | | 2 years | | Unrecovered Winter Storm Fuel Costs (b) | | 99.3 | | | 148.6 | | | 4 years | | Fuel Mine Closure Costs - Texas | | 74.3 | | | — | | | 12 years | | Pirkey Plant Accelerated Depreciation - Louisiana | | 65.8 | | | 63.0 | | | 9 years | | Plant Retirement Costs - Unrecovered Plant, Arkansas | | 44.4 | | | 13.1 | | | 19 years | | Plant Retirement Costs - Unrecovered Plant, Dolet Hills Power Station - Louisiana | | 40.8 | | | 45.1 | | | 9 years | | Environmental Controls Projects | | 8.9 | | | 10.0 | | | 9 years | | Plant Retirement Costs - Unrecovered Plant, Welsh Plant, Unit 2 - Louisiana | | — | | | 35.2 | | | | | Other Regulatory Assets Approved for Recovery | | 4.9 | | | 6.8 | | | various | | Total Regulatory Assets Currently Earning a Return | | 483.1 | | | 321.8 | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | Pension and OPEB Funded Status | | 109.2 | | | 96.2 | | | 12 years | | Plant Retirement Costs - Unrecovered Plant, Texas | | 48.7 | | | 51.7 | | | 23 years | | North Central Wind Rider | | 20.2 | | | 6.4 | | | 2 years | | Plant Retirement Costs - Unrecovered Plant, Arkansas | | 17.3 | | | 21.1 | | | 4 years | | Unrealized Loss on Forward Commitments | | 15.4 | | | — | | | 2 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Assets Approved for Recovery | | 30.1 | | | 35.0 | | | various | | Total Regulatory Assets Currently Not Earning a Return | | 240.9 | | | 210.4 | | | | | | | | | | | | Total Regulatory Assets Approved for Recovery | | 724.0 | | | 532.2 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 1,131.8 | | | $ | 1,042.4 | | | |
(a)Amounts include Arkansas and Texas jurisdictions. (b)See “February 2021 Severe Winter Weather Impacts in SPP” section of SWEPCo Rate Matters in Note 4 for additional information. (c)Amounts include the FERC jurisdiction. | | | | | | | | | | | | | | | | | | | | | | | SWEPCo | | | December 31, | | Remaining
Refund
Period | | | 2023 | | 2022 | | | Regulatory Liabilities: | | (in millions) | | | | | | | | | | | Current Regulatory Liabilities | | | | | | | | Over-recovered Fuel Costs - pays a return (a) | | $ | 3.3 | | | $ | 1.4 | | | 1 year | | Total Current Regulatory Liabilities | | $ | 3.3 | | | $ | 1.4 | | | | | | | | | | | 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 | | 443.2 | | | 481.2 | | | (c) | | Income Taxes, Net (b) | | 292.4 | | | 327.6 | | | (d) | | | | | | | | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 4.4 | | | 2.2 | | | various | | Total Regulatory Liabilities Currently Paying a Return | | 740.0 | | | 811.0 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Regulatory Liabilities Approved for Payment | | 9.1 | | | 7.7 | | | various | | Total Regulatory Liabilities Currently Not Paying a Return | | 9.1 | | | 7.7 | | | | | | | | | | | | Total Regulatory Liabilities Approved for Payment | | 749.1 | | | 818.7 | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | $ | 756.1 | | | $ | 825.7 | | | |
(a)Amounts include 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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