What changed in American Electric Power's 2023 10-K compared to 2022?

Across the narrative sections we track, American Electric Power (AEP) added 346 paragraphs, removed 372, and edited 227 between the 2022 and 2023 10-K filings. The biggest movers are Item 1. Business (+194/−269), Item 1A. Risk Factors (+119/−69), Item 2. Properties (+22/−23).

Did American Electric Power add new Risk Factors in the 2023 10-K?

Yes — Item 1A Risk Factors shows 119 new/edited paragraphs and 69 removed paragraphs versus the 2022 10-K.

What changed in American Electric Power's MD&A (Item 7) in 2023?

Item 7 Management's Discussion & Analysis shows 3 new/edited paragraphs and 3 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Where does this AEP 10-K diff come from?

The source filings are American Electric Power's official 2022 and 2023 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in American Electric Power's 10-K — 2022 vs 2023

Paragraph-level year-over-year comparison of American Electric Power's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+346 added−372 removedSource: 10-K (2024-02-26) vs 10-K (2023-02-23)

Top changes in American Electric Power's 2023 10-K

346 paragraphs added · 372 removed · 227 edited across 7 sections

Item 1. Business+194 / −269 · 141 edited
Item 1A. Risk Factors+119 / −69 · 62 edited
Item 2. Properties+22 / −23 · 15 edited
Item 5. Market for Registrant's Common Equity+5 / −5 · 5 edited
Item 4. Mine Safety Disclosures+2 / −2

Item 1. Business

Business — how the company describes what it does

141 edited+53 added−128 removed65 unchanged

2022 filing

2023 filing

Biggest change(50%) 158.0 12.8 % Berkshire Hathaway Energy (25%) AEP (25%) Pioneer Indiana 2018 Duke Energy (50%) 191.0 10.52 % (b) AEP (50%) Transource Missouri 2016 Evergy, Inc. 310.5 11.1 % (c) Missouri (13.5%) (d) AEP (86.5%) (d) Transource West 2019 Evergy, Inc. 86.0 10.5 % West Virginia Virginia (13.5%) (d) AEP (86.5%) (d) Transource Maryland 2023 Evergy, Inc. 27.6 (e) 10.4 % Maryland (13.5%) (d) AEP (86.5%) (d) Transource Pennsylvania 2023 Evergy, Inc. 243.6 (e) 10.4 % Pennsylvania (13.5%) (d) AEP (86.5%) (d) Transource Oklahoma 2026 Evergy, Inc. 111.0 (f) 10.0 % Oklahoma (13.5%)(d) AEP (86.5%) (d) Transource Pennsylvania 2029 Evergy, Inc. 76.3 (g) 10.4 % Energy (13.5%) (d) AEP (86.5%) (d) (a) ETT is undertaking multiple projects and the completion dates will vary for those projects.

Biggest change(50%) 158.0 12.8 % BHE (25%) AEP (25%) Pioneer Indiana 2018 Duke Energy (50%) 191.0 10.52 % (b) AEP (50%) Transource Missouri 2016 Evergy, Inc. (13.5%) (d) 310.1 11.1 % (c) Missouri AEP (86.5%) (d) Transource West 2019 Evergy, Inc. (13.5%) (d) 84.3 10.5 % West Virginia Virginia AEP (86.5%) (d) Transource Maryland 2027 Evergy, Inc.

AEP Texas may file interim TCOS filings semi-annually and DCRF filings annually to update its rates to reflect changes in its net invested capital.

AEP Texas may file interim TCOS and DCRF filings semi-annually to update its rates to reflect changes in its net invested capital.

The FERC also requires all transmitting utilities, directly or through an RTO, to establish an Open Access Same-time Information System, which electronically posts transmission information such as available capacity and prices, and requires utilities to comply with Standards of Conduct that prohibit utilities’ transmission employees from providing non-public transmission information to the utility’s marketing employees.

In the event that low-level radioactive waste disposal facility access becomes unavailable, it can be stored onsite at this facility. 17 Counterparty Risk Management The Vertically Integrated Utilities segment also sells power and enters into related energy transactions with wholesale customers and other market participants.

In the event that low-level radioactive waste disposal facility access becomes unavailable, it can be stored onsite at this facility. Counterparty Risk Management The Vertically Integrated Utilities segment also sells power and enters into related energy transactions with wholesale customers and other market participants.

In general, the operating companies consider their franchises to be adequate for the conduct of their business. 22 The use and the recovery of costs associated with the transmission assets of the AEP transmission and distribution utility subsidiaries are subject to the rules, protocols and agreements in place with PJM and ERCOT, and as approved by the FERC.

In general, the operating companies consider their franchises to be adequate for the conduct of their business. The use and the recovery of costs associated with the transmission assets of the AEP transmission and distribution utility subsidiaries are subject to the rules, protocols and agreements in place with PJM and ERCOT, and as approved by the FERC.

In addition, both the FERC and state regulators are permitted to review the books and records of any company within a holding company system. 21 COMPETITION AEP’s vertically integrated public utility subsidiaries primarily generate, transmit and distribute electricity to retail customers of AEP’s vertically integrated public utility subsidiaries in their service territories.

In addition, both the FERC and state regulators are permitted to review the books and records of any company within a holding company system. COMPETITION AEP’s vertically integrated public utility subsidiaries primarily generate, transmit and distribute electricity to retail customers of AEP’s vertically integrated public utility subsidiaries in their service territories.

AEP adjusted its near-term CO 2 emission reduction target from a 2000 baseline to a 2005 baseline, upgraded its 80% reduction by 2030 target to include full Scope 1 emissions and accelerated its net-zero goal by five years to 2045.

With the exception of a voluntary bankruptcy or insolvency, any event of default has either or both a cure period or notice requirement before termination of the agreement. A voluntary bankruptcy or insolvency of AEP or one of its significant subsidiaries would be considered an immediate termination event.

With the exception of a voluntary bankruptcy or insolvency, any event of default has either or both a cure period or notice requirement before termination of the applicable agreement. A voluntary bankruptcy or insolvency of AEP or one of its significant subsidiaries would be considered an immediate termination event.

These allocations have been determined by the FERC-approved OATT for the SPP. 19 Regional Transmission Organizations AEGCo, APCo, I&M, KGPCo, KPCo and WPCo are members of PJM, and PSO and SWEPCo are members of SPP (both FERC-approved RTOs).

These allocations have been determined by the FERC-approved OATT for the SPP. Regional Transmission Organizations AEGCo, APCo, I&M, KGPCo, KPCo and WPCo are members of PJM, and PSO and SWEPCo are members of SPP (both FERC-approved RTOs).

The member companies of the AEP System have contractual, financial and other business relationships with the other member companies, such as participation in the AEP System savings and retirement plans and tax returns, sales of electricity and transportation and handling of fuel.

The member companies of AEP have contractual, financial and other business relationships with the other member companies, such as participation in AEP savings and retirement plans and tax returns, sales of electricity and transportation and handling of fuel.

AEP’s reportable segments are as follows: • Vertically Integrated Utilities • Transmission and Distribution Utilities • AEP Transmission Holdco • Generation & Marketing The remainder of AEP’s activities is presented as Corporate and Other, which is not considered a reportable segment. See Note 9 - Business Segments included in the 2022 Annual Report for additional information on AEP’s segments.

AEP’s reportable segments are as follows: • Vertically Integrated Utilities • Transmission and Distribution Utilities • AEP Transmission Holdco • Generation & Marketing The remainder of AEP’s activities is presented as Corporate and Other, which is not considered a reportable segment. See Note 9 - Business Segments included in the 2023 Annual Report for additional information on AEP’s segments.

See the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2022 Annual Report for additional information with respect to nuclear waste and decommissioning. Low-Level Radioactive Waste The Low-Level Waste Policy Act of 1980 mandates that the responsibility for the disposal of low-level radioactive waste rests with the individual states.

See the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2023 Annual Report for additional information with respect to nuclear waste and decommissioning. Low-Level Radioactive Waste The Low-Level Waste Policy Act of 1980 mandates that the responsibility for the disposal of low-level radioactive waste rests with the individual states.

Certain public utility subsidiaries of AEP also sell accounts receivable to provide liquidity. See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2022 Annual Report for additional information.

As of December 31, 2022 and 2021, the total decommissioning trust fund balance for the Cook Plant was approximately $3 billion and $3.5 billion, respectively. The balance of funds available to eventually decommission Cook Plant will differ based on contributions and investment returns.

As of December 31, 2023 and 2022, the total decommissioning trust fund balance for the Cook Plant was approximately $3.5 billion and $3 billion, respectively. The balance of funds available to eventually decommission Cook Plant will differ based on contributions and investment returns.

In addition, the acceleration of AEP’s payment obligations, or the obligations of certain of its major subsidiaries, prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $50 million, would cause an event of default under the credit agreement. As of December 31, 2022, AEP was in compliance with its debt covenants.

In addition, the acceleration of AEP’s payment obligations, or the obligations of certain of its major subsidiaries, prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $50 million, would cause an event of default under the credit agreements. As of December 31, 2023, AEP was in compliance with its debt covenants.

We are also signatories of the CEO Action for Diversity and Inclusion pledge, Paradigm for Parity and several other local and industry DEI initiatives to demonstrate our commitment to advancing diversity and inclusion within the workplace. In addition, we’re committed to working with the communities we serve to advance equity for our employees, customers and neighbors of color.

We are also signatories of the CEO Action for Diversity and Inclusion pledge, Paradigm for Parity and several other local and industry initiatives to demonstrate our commitment to advancing a culture of inclusion within the workplace. In addition, we’re committed to working with the communities we serve to advance equity for our employees, customers and neighbors of color.

The TA has been approved by the FERC. Regional Transmission Organizations OPCo is a member of PJM, a FERC-approved RTO. RTOs operate, plan and control utility transmission assets to provide open access to such assets in a way that prevents discrimination between participants owning transmission assets and those that do not. AEP Texas is a member of ERCOT.

West Virginia APCo and WPCo provide retail electric service at bundled rates approved by the WVPSC, with rates set on a combined cost-of-service basis. West Virginia generally allows for timely recovery of fuel costs through the ENEC which trues-up to actual expenses.

West Virginia APCo and WPCo provide retail electric service at bundled rates approved by the WVPSC, with rates set on a combined cost-of-service basis. West Virginia generally allows for timely recovery of fuel costs, purchased power costs and transmission expenses through the ENEC which trues-up to actual expenses.

Short-term debt may also be used to finance acquisitions, construction and redemption or repurchase of outstanding securities until such needs can be financed with long-term debt. In recent history, short-term funding needs have been provided for by cash on hand, term loan issuances and AEP’s commercial paper program. Funds are made available to subsidiaries under the AEP corporate borrowing program.

Short-term debt may also be used to finance acquisitions, construction and redemption or repurchase of outstanding securities until such needs can be financed with long-term debt. In recent history, short-term funding needs have been provided for by cash from operations, AEP’s commercial paper program and term loan issuances. Funds are made available to subsidiaries under the AEP corporate borrowing program.

As of December 31, 2022, through subsidiaries, AEP owns, leases or controls 3,000 railcars, 319 barges, 4 towboats and a coal handling terminal with approximately 18 million tons of annual capacity to move and store coal for use in AEP generating facilities. AEP will procure additional railcar and barge/towboat capacity as needed based on demand.

As of December 31, 2023, through subsidiaries, AEP owns, leases or controls 3,180 railcars, 319 barges, 4 towboats and a coal handling terminal with approximately 18 million tons of annual capacity to move and store coal for use in AEP generating facilities. AEP will procure additional railcar and barge/towboat capacity as needed based on demand.

These franchises have varying provisions and expiration dates. In general, the operating companies consider their franchises to be adequate for the conduct of their business. For a discussion of competition in the sale of power, see Item 1. Business – Vertically Integrated Utilities – Competition.

REGULATION OPCo provides distribution and transmission services to retail customers within its service territory at cost-based rates approved by the PUCO or by the FERC. AEP Texas sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) and Distribution Cost Recovery Factor (DCRF) filings.

AEP Texas is a member of ERCOT. 15 REGULATION OPCo provides distribution and transmission services to retail customers within its service territory at cost-based rates approved by the PUCO or by the FERC. AEP Texas sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) and Distribution Cost Recovery Factor (DCRF) filings.

Fuel Supply The following table shows the owned and leased generation sources by type (including wind purchase agreements), on an actual net generation (MWhs) basis, used by the Vertically Integrated Utilities: 2022 2021 2020 Coal and Lignite 43% 50% 45% Nuclear 21% 22% 24% Natural Gas 19% 16% 18% Renewables 17% 12% 13% An increase/decrease in one or more generation types relative to previous years reflects the addition of renewable resources, retirement of traditional fossil fuel units and price changes in one or more fuel commodity sources relative to the pricing of other fuel commodity sources.

Fuel Supply The following table shows the owned and leased generation sources by type (including wind purchase agreements), on an actual net generation (MWhs) basis, used by the Vertically Integrated Utilities: 2023 2022 2021 Coal and Lignite 37% 43% 50% Nuclear 22% 21% 22% Natural Gas 22% 19% 16% Renewables 19% 17% 12% An increase/decrease in one or more generation types relative to previous years reflects the addition of renewable resources, retirement of traditional fossil fuel units and price changes in one or more fuel commodity sources relative to the pricing of other fuel commodity sources.

The ERGs at AEP include Abled and Differently-Abled Partnering Together, the Black ERG, the Asian-American Employee Partnership ERG, the Hispanic Origin Latin American ERG, the Military Veteran ERG, the Native American Tribes Interacting, Observing and Networking ERG, the Pride Partnership and the Women at Work ERG.

The total filed transmission revenue requirements, including prior year over/under-recovery of revenue and associated carrying charges were $1.7 billion, $1.4 billion and $1.2 billion for 2022, 2021 and 2020, respectively. The rates of ETT, which is located in ERCOT, are determined by the PUCT.

The total filed transmission revenue requirements, including prior year over/under-recovery of revenue and associated carrying charges were $1.8 billion, $1.7 billion and $1.4 billion for 2023, 2022 and 2021, respectively. The rates of ETT, which is located in ERCOT, are determined by the PUCT.

Service Company Subsidiary AEPSC is a service company subsidiary that provides accounting, administrative, information systems, engineering, financial, legal, maintenance and other services at cost to AEP subsidiaries. The executive officers of AEP and certain of the executive officers of its public utility subsidiaries are employees of AEPSC.

Instead, AEPSC and certain AEP utility subsidiaries provide services to these entities. Service Company Subsidiary AEPSC is a service company subsidiary that provides accounting, administrative, information systems, engineering, financial, legal, maintenance and other services at cost to AEP subsidiaries. The executive officers of AEP and certain of the executive officers of its public utility subsidiaries are employees of AEPSC.

The ability to maintain relatively low cost, efficient and reliable operations and to provide cost-effective programs and services to customers are significant determinants of AGR’s competitiveness. The costs of photovoltaic solar cells in particular have continued to become increasingly competitive.

The ability to maintain relatively low cost, efficient and reliable operations and to provide cost-effective programs and services to customers are significant determinants of AEP Onsite Partner’s competitiveness. The costs of photovoltaic solar cells in particular have continued to become increasingly competitive.

For further information relating to the sources of revenue for the Registrants, see Note 19 - Revenues from Contracts with Customers for additional information. FINANCING General Companies within the AEP System generally use short-term debt to finance working capital needs.

For further information relating to the sources of revenue for the Registrants, see Note 19 - Revenues from Contracts with Customers for additional information. FINANCING General AEP subsidiaries generally use short-term debt to finance working capital needs.

AEPSC, as agent for AEP’s public utility subsidiaries, performs marketing, generation dispatch, fuel procurement and power-related risk management and trading activities on behalf of each of these subsidiaries. ELECTRIC GENERATION Facilities As of December 31, 2022, AEP’s vertically integrated public utility subsidiaries owned approximately 23,500 MWs of domestic generation.

AEPSC, as agent for AEP’s public utility subsidiaries, performs marketing, generation dispatch, fuel procurement and power-related risk management and trading activities on behalf of each of these subsidiaries. ELECTRIC GENERATION Facilities As of December 31, 2023, AEP’s vertically integrated public utility subsidiaries owned approximately 23,000 MWs of generation.

See Note 4 - Rate Matters included in the 2022 Annual Report for more information regarding pending rate matters. 20 Indiana I&M provides retail electric service in Indiana at bundled rates approved by the IURC, with rates set on a forecasted cost-of-service basis. Indiana provides for timely fuel and purchased power cost recovery through a fuel cost recovery mechanism.

See Note 4 - Rate Matters included in the 2023 Annual Report for more information regarding pending rate matters. Indiana I&M provides retail electric service in Indiana at bundled rates approved by the IURC, with rates set on a forecasted cost-of-service basis. Indiana provides for timely fuel and purchased power cost recovery through respective fuel and purchased power recovery mechanisms.

Our partnership with labor unions is critical to meeting the growing expectations of our customers and adapting to the challenges of rapidly changing technologies. 14 BUSINESS SEGMENTS AEP’s Reportable Segments AEP’s primary business is the generation, transmission and distribution of electricity.

Our relationship with labor unions is critical to meeting the growing expectations of our customers and adapting to the challenges of rapidly changing technologies. 8 BUSINESS SEGMENTS AEP’s Reportable Segments AEP’s primary business is the generation, transmission and distribution of electricity.

As of December 31, 2022, AEPSC had 6,572 employees. 3 Public Utility Subsidiaries by Jurisdiction The following table illustrates certain regulatory information with respect to the jurisdictions in which the public utility subsidiaries of AEP operate: Principal Jurisdiction AEP Utility Subsidiaries Operating in that Jurisdiction Authorized Return on Equity (a) FERC AEPTCo - PJM 10.35 % (b) AEPTCo - SPP 10.50 % Ohio OPCo 9.70 % West Virginia APCo 9.75 % WPCo 9.75 % Virginia APCo 9.20 % Indiana I&M 9.70 % Michigan I&M 9.86 % Texas AEP Texas 9.40 % SWEPCo 9.25 % (c) Tennessee KGPCo 9.50 % Kentucky KPCo 9.30 % Louisiana SWEPCo 9.50 % Arkansas SWEPCo 9.50 % Oklahoma PSO 9.40 % (a) Identifies the predominant current authorized ROE, and may not include other, less significant, permitted recovery.

Public Utility Subsidiaries by Jurisdiction The following table illustrates certain regulatory information with respect to the jurisdictions in which the public utility subsidiaries of AEP operate: Principal Jurisdiction AEP Utility Subsidiaries Operating in that Jurisdiction Authorized Return on Equity (a) Arkansas SWEPCo 9.50 % FERC AEPTCo - PJM 10.35 % (b) AEPTCo - SPP 10.50 % Indiana I&M 9.70 % Kentucky KPCo 9.75 % (c) Louisiana SWEPCo 9.50 % Michigan I&M 9.86 % Ohio OPCo 9.70 % Oklahoma PSO 9.30 % Tennessee KGPCo 9.50 % Texas AEP Texas 9.40 % SWEPCo 9.25 % (d) Virginia APCo 9.50 % West Virginia APCo 9.75 % WPCo 9.75 % (a) Identifies the predominant current authorized ROE, and may not include other, less significant, permitted recovery.

This segment’s retail operations provide competitive electricity and natural gas in deregulated retail energy markets in six states and Washington, D.C. Each such retail choice jurisdiction establishes its own laws and regulations governing its competitive market, and public utility commission communications and utility default service pricing can affect customer participation in retail competition.

AEP Energy provides competitive electricity and natural gas in deregulated retail energy markets in six states and Washington, D.C. Each such retail choice jurisdiction establishes its own laws and regulations governing its competitive market, and public utility commission communications and utility default service pricing can affect customer participation in retail competition.

ENVIRONMENTAL AND OTHER MATTERS General AEP subsidiaries are currently subject to regulation by federal, state and local authorities with regard to air and water-quality control and other environmental matters, and are subject to zoning and other regulation by local authorities.

ENVIRONMENTAL AND OTHER MATTERS General AEP subsidiaries are currently subject to regulation by federal, state and local authorities with regard to air and water-quality control, solid and hazardous waste disposal and other environmental matters, and are subject to zoning and other regulation by local authorities.

The following table shows the amount of natural gas delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of natural gas purchased by the Vertically Integrated Utilities. 2022 2021 2020 Total natural gas delivered to the plants (in billions cubic feet) 126.0 108.0 113.1 Average delivered price per MMBtu of purchased natural gas $ 6.94 $ 8.92 $ 2.14 16 Nuclear I&M has made commitments to meet the current nuclear fuel requirements of the Cook Plant.

The following table shows the amount of natural gas delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of natural gas purchased by the Vertically Integrated Utilities: 2023 2022 2021 Total natural gas delivered to the plants (in billions cubic feet) 146.0 126.0 108.0 Average delivered price per MMBtu of purchased natural gas $ 2.69 $ 6.94 $ 8.92 10 Nuclear I&M has made commitments to meet the current nuclear fuel requirements of the Cook Plant.

The State Transcos own, operate, maintain and invest in transmission infrastructure in order to maintain and enhance system integrity and grid reliability, grid security, safety, reduce transmission constraints and facilitate interconnections of new generating resources and new wholesale customers, as well as enhance competitive wholesale electricity markets.

SWTCo does not currently own or operate transmission assets. The State Transcos own, operate, maintain and invest in transmission infrastructure in order to maintain and enhance system integrity and grid reliability, grid security, safety, reduce transmission constraints and facilitate interconnections of new generating resources and new wholesale customers, as well as enhance competitive wholesale electricity markets.

The companies of the AEP System also obtain certain accounting, administrative, information systems, engineering, financial, legal, maintenance and other services at cost from a common provider, AEPSC. As of December 31, 2022, the subsidiaries of AEP had a total of 16,974 employees. Because it is a holding company rather than an operating company, AEP has no employees.

The member companies of AEP also obtain certain accounting, administrative, information systems, engineering, financial, legal, maintenance and other services at cost from a common provider, AEPSC. As of December 31, 2023, the subsidiaries of AEP had a total of 17,250 employees. Because it is a holding company rather than an operating company, AEP has no employees.

See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2022 Annual Report for additional information. AEP’s subsidiaries have also utilized, and expect to continue to utilize, additional financing arrangements, such as securitization financings and leasing arrangements, including the leasing of coal transportation equipment and facilities.

See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report for additional information. AEP’s subsidiaries have also utilized, and expect to continue to utilize, additional financing arrangements, such as securitization financings and leasing arrangements.

The Transmission Joint Ventures currently include: Joint Venture Name Location Projected or Actual Completion Date Owners (Ownership %) Total Estimated/Actual Project Costs at Completion Approved Return on Equity (in millions) ETT Texas (a) Berkshire Hathaway $ 4,100.0 (a) 9.6 % (ERCOT) Energy (50%) AEP (50%) Prairie Wind Kansas 2014 Evergy, Inc.

The Transmission Joint Ventures currently include: Joint Venture Name Location Projected or Actual Completion Date Owners (Ownership %) Total Estimated/Actual Project Costs at Completion Approved Return on Equity (in millions) ETT Texas (a) BHE (50%) $ 5,000.0 (a) 9.6 % (ERCOT) AEP (50%) Prairie Wind Kansas 2014 Evergy, Inc.

The following table shows the amount of coal and lignite delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of coal and lignite purchased by the Vertically Integrated Utilities: 2022 2021 2020 Total coal and lignite delivered to the plants (in millions of tons) 20.4 18.2 19.4 Average cost per ton of coal and lignite delivered $ 56.16 $ 50.76 $ 53.95 The coal supplies at the Vertically Integrated Utilities plants vary from time to time depending on various factors, including, but not limited to, demand for electric power, unit outages, transportation infrastructure limitations, space limitations, plant coal consumption rates, availability of acceptable coals, labor issues and weather conditions, which may interrupt production or deliveries.

The following table shows the amount of coal and lignite delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of coal and lignite purchased by the Vertically Integrated Utilities: 2023 2022 2021 Total coal and lignite delivered to the plants (in millions of tons) 20.9 20.4 18.2 Average cost per ton of coal and lignite delivered $ 64.31 $ 56.16 $ 50.76 The coal supplies at the Vertically Integrated Utilities plants vary from time to time depending on various factors, including, but not limited to, demand for electric power, unit outages, transportation infrastructure limitations, space limitations, coal consumption rates, labor issues, supplier outages and issues and weather conditions, all of which may interrupt or slow production, consumption or deliveries.

In 2022, approximately 461 AEPSC employees and 294 operating company employees provided service to one or more joint ventures. 25 REGULATION The State Transcos and the Transmission Joint Ventures located outside of ERCOT establish transmission rates annually through forward-looking formula rate filings with the FERC pursuant to FERC-approved implementation protocols.

In 2023, approximately 494 AEPSC employees and 317 operating company employees provided service to one or more joint ventures. 17 REGULATION The State Transcos and the Transmission Joint Ventures located outside of ERCOT establish transmission rates annually through forward-looking formula rate filings with the FERC pursuant to FERC-approved implementation protocols.

As of December 31, 2022, counterparties posted approximately $498 million in cash, cash equivalents or letters of credit with AEP for the benefit of AEP’s Generation & Marketing segment subsidiaries (while, as of that date, AEP’s Generation & Marketing segment subsidiaries posted approximately $115 million with counterparties and exchanges).

As of December 31, 2023, counterparties posted approximately $117 million in cash, cash equivalents or letters of credit with AEP for the benefit of AEP’s Generation & Marketing segment subsidiaries (while, as of that date, AEP’s Generation & Marketing segment subsidiaries posted approximately $155 million with counterparties and exchanges).

As of December 31, 2022, counterparties posted approximately $14 million in cash, cash equivalents or letters of credit with AEPSC for the benefit of AEP’s public utility subsidiaries (while, as of that date, AEP’s public utility subsidiaries posted approximately $207 million with counterparties and exchanges).

As of December 31, 2023, counterparties posted approximately $36 million in cash, cash equivalents or letters of credit with AEPSC for the benefit of AEP’s public utility subsidiaries (while, as of that date, AEP’s public utility subsidiaries posted approximately $200 million with counterparties and exchanges).

DEI is a strategic priority for AEP and our efforts are guided by four principles: • Establishing leadership accountability around DEI outcomes. • Building and maintaining a workforce that reflects the communities we serve. • Promoting an inclusive culture where all employees can thrive. • Supporting the communities we serve so they will prosper.

Our inclusion efforts are guided by four principles: • Establishing leadership accountability around culture and inclusion outcomes. • Building and maintaining a workforce that generally reflects the communities we serve. • Promoting an inclusive culture where all employees can thrive. • Supporting the communities we serve so they will prosper.

AEP’s overall 2022 fossil fuel costs for the Vertically Integrated Utilities increased 1.1% on a dollar per MMBtu basis from 2021. 15 Coal and Lignite AEP’s Vertically Integrated Utilities procure coal and lignite under a combination of purchasing arrangements including long-term contracts, affiliate operations and spot agreements with various producers, marketers and coal trading firms.

AEP’s overall 2023 fossil fuel costs for the Vertically Integrated Utilities decreased 28.3% on a dollar per MMBtu basis from 2022. 9 Coal and Lignite AEP’s Vertically Integrated Utilities procure coal and lignite under a combination of purchasing arrangements including long-term contracts, affiliate operations and spot agreements with various producers, marketers and coal trading firms.

Actual ROE varies from authorized ROE. (b) In December 2022, the FERC issued an order removing the 50 basis point RTO incentive from OHTCo transmission formula rates effective February 2022, reducing OHTCo’s authorized ROE to 9.85%.

Additionally, AEP’s retirement programs position our employees for financial stability in retirement. Labor Relations Nearly one fourth of AEP’s workforce is represented by labor unions. We value the relationships we have with our union represented employees and believe in a trusting, collaborative and respectful partnership.

Labor Relations Nearly one fourth of AEP’s workforce is represented by labor unions. We value the relationships we have with our union represented employees and believe in a trusting, collaborative and respectful partnership.

Transource Missouri, Transource West Virginia, Transource Maryland, Transource Pennsylvania and Transource Oklahoma are consolidated joint ventures by AEP. All other joint ventures in the table above are not consolidated by AEP. AEP’s joint ventures do not have employees. Business services for the joint ventures are provided by AEPSC and other AEP subsidiaries and the joint venture partners.

All other joint ventures in the table above are not consolidated by AEP. AEP’s joint ventures do not have employees. Business services for the joint ventures are provided by AEPSC and other AEP subsidiaries and the joint venture partners.

The aggregate power participation ratio of APCo, I&M and OPCo is 43.47%. The ICPA terminates in June 2040. The proceeds from charges by OVEC to sponsoring companies under the ICPA based on their power participation ratios are designed to be sufficient for OVEC to meet its operating expenses and fixed costs.

The ICPA terminates in June 2040. The proceeds from charges by OVEC to sponsoring companies under the ICPA based on their power participation ratios are designed to be sufficient for OVEC to meet its operating expenses and fixed costs.

A key part of AEP’s business is replacing and upgrading transmission facilities, assets and components of the existing AEP System as needed to maintain reliability. The State Transcos provide the capability to build, replace and upgrade existing facilities.

A key part of AEP’s business is replacing and upgrading transmission facilities, assets and components of the existing AEP System as needed to maintain reliability.

See Note 17 - Variable Interest Entities and Equity Method Investments for additional information. 18 ELECTRIC DELIVERY General Other than AEGCo, AEP’s vertically integrated public utility subsidiaries own and operate transmission and distribution lines and other facilities to deliver electric power. See Item 2 – Properties for more information regarding the transmission and distribution lines.

ELECTRIC DELIVERY General Other than AEGCo, AEP’s vertically integrated public utility subsidiaries own and operate transmission and distribution lines and other facilities to deliver electric power. See Item 2 – Properties for more information regarding the transmission and distribution lines.

Parent owns 39.17% and OPCo owns 4.3%. Under the Inter-Company Power Agreement (ICPA), which defines the rights of the owners and sets the power participation ratio of each, the sponsoring companies are entitled to receive and are obligated to pay for all OVEC capacity (approximately 2,400 MWs) in proportion to their respective power participation ratios.

Under the Inter-Company Power Agreement (ICPA), which defines the rights of the owners and sets the power participation ratio of each, the sponsoring companies are entitled to receive and are obligated to pay for all OVEC capacity (approximately 2,400 MWs) in proportion to their respective power participation ratios. The aggregate power participation ratio of APCo, I&M and OPCo is 43.47%.

OVEC financed capital expenditures in excess of $1 billion in connection with flue gas desulfurization projects and the associated scrubber waste disposal landfills at its two generation plants through debt issuances, including tax-advantaged debt issuances. Both OVEC generation plants are operating with the new environmental controls in-service.

The DART rate is a mathematical calculation (number of DART events multiplied by 200,000 work hours and divided by total YTD hours worked) that describes the number of recordable injuries per 100 full-time employees. In 2022, AEP’s employee DART Rate performance improved to 0.424 as compared to 0.430 in 2021.

The DART rate is a mathematical calculation (number of DART events multiplied by 200,000 and divided by total YTD hours worked) that describes the number of injuries per 100 full-time employees. In 2023, AEP’s employee DART rate performance improved to 0.384 as compared to 0.424 in 2022. Culture and Inclusion Culture serves as the foundation for success at AEP.

We believe our workforce should generally reﬂect the diversity of our customers and the communities we serve so that we may better understand how to tailor our services to meet their expectations.

We believe our workforce generally should reﬂect the diversity of our customers and the communities we serve so that we may better understand how to tailor our services to meet their expectations. As of December 31, 2023, women comprised approximately 20% of AEP’s total workforce.

To date, the Federal EPA has twice taken action to regulate CO 2 emissions from new and existing fossil fueled electric generating units under the existing provisions of the CAA and both attempts have been struck down by the courts. The Federal EPA has announced it expects to propose a new rule in 2023.

Climate Change, CO 2 Regulation and Energy Policy To date, the Federal EPA has twice taken action to regulate CO 2 emissions from new and existing fossil fueled electric generating units under the existing provisions of the CAA and both attempts have been struck down by the courts.

In other areas, power demand peaks during the winter. The pattern of this fluctuation may change due to the nature and location of AEP’s facilities and the terms of power sale contracts into which AEP enters. In addition, AEP has historically sold less power, and consequently earned less income, when weather conditions are milder.

The pattern of this fluctuation may change due to the nature and location of AEP’s facilities and the terms of power sale contracts into which AEP enters. In addition, AEP has historically sold and delivered less power, and consequently earned less income, when weather conditions are milder. Unusually mild weather in the future could diminish AEP’s results of operations.

In addition, the Human Resources Committee of the Board of Directors provides oversight of our compensation and human resources policies and practices, including an annual review of our diversity, equity and inclusion strategy, results of our culture survey and compliance with equal opportunity laws.

AEP’s Human Resources Committee of the Board reviews the culture and employee engagement results annually, providing additional oversight. In addition, the Human Resources Committee of the Board provides oversight of our compensation and human resources policies and practices, including an annual review of our culture and inclusion strategy, and compliance with equal opportunity laws.

Management estimates that its operating companies spent approximately $1.6 billion since 2008 to achieve these levels . Energy efficiency and demand reduction programs have received regulatory support in most of the states AEP serves, and appropriate cost recovery will be essential for AEP operating companies to continue and expand these consumer offerings.

Energy efficiency and demand reduction programs have received regulatory support in most of the states AEP serves, and appropriate cost recovery will be essential for AEP operating companies to continue and expand these consumer offerings.

See “Environmental Issues - Coal Combustion Residual (CCR) Rule” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2022 Annual Report for additional information. Clean Air Act Requirements The CAA establishes a comprehensive program to protect and improve the nation’s air quality and control mobile and stationary sources of air emissions.

For additional information on the laws and regulations discussed below, see “Environmental Issues” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report. Clean Air Act Requirements (CAA) The CAA establishes a comprehensive program to protect and improve the nation’s air quality and control sources of air emissions.

President and Chief Operating Officer of APCo from January 2017 to September 2022. Vice President, Projects Controls & Construction from January 2013 to December 2016. David M. Feinberg Executive Vice President, General Counsel and Secretary Age 53 Executive Vice President since January 2013. General Counsel and Secretary since January 2012. Greg B.

Beam Executive Vice President - Energy Services Age 55 Executive Vice President - Energy Services since September 2022. President and Chief Operating Officer of APCo from January 2017 to September 2022. Vice President, Projects Controls & Construction from January 2013 to December 2016. David M.

The State Transcos develop, own, operate and maintain their respective transmission assets. Assets of the State Transcos interconnect to transmission facilities owned by the aforementioned operating companies and nonaffiliated transmission owners within the footprints of PJM, MISO and SPP. APTCo, IMTCo, KTCo, OHTCo and WVTCo are located within PJM.

Assets of the State Transcos interconnect to transmission facilities owned by the aforementioned operating companies and nonaffiliated transmission owners within the footprints of PJM, MISO and SPP. APTCo, IMTCo, KTCo, OHTCo and WVTCo are located within PJM. IMTCo also owns portions of the Greentown station assets located in MISO. OKTCo and SWTCo are located within SPP.

With respect to the wholesale energy trading and marketing business, AEP Generation & Marketing segment subsidiaries enter into short-term and long-term transactions to buy or sell capacity, energy and ancillary services in ERCOT, SPP, MISO and PJM. These subsidiaries sell power into the market and engage in power, natural gas and emissions allowances risk management and trading activities.

AEP Energy Partners enters into short-term and long-term transactions to buy or sell capacity, energy and ancillary services in ERCOT, SPP, MISO and PJM. In addition, AEP Energy Partners sells power into the market and engages in power, natural gas and emissions allowances risk management and trading activities.

PJM and SPP pay the transmission owners their ATRR for use of their facilities and bill transmission customers taking service under the PJM and SPP OATTs, based on the terms and conditions in the respective OATT for the service taken. Additionally, the State Transcos are subject to reliability standards promulgated by the NERC, with the approval of the FERC.

In May 2022, SWEPCo filed a petition for review with the Texas District Court seeking a judicial review of the several errors challenged in the PUCT’s final order. (a) Pretax income does not include intercompany eliminations.

In April 2022, the PUCT denied the motion for rehearing. In May 2022, SWEPCo filed a petition for review with the Texas District Court seeking a judicial review of the several errors challenged in the PUCT’s final order.

As discussed below, some transmission services also are separately sold to nonaffiliated companies. AEP’s transmission and distribution utility subsidiaries hold franchises or other rights to provide electric service in various municipalities and regions in their service areas. In some cases, these franchises provide the utility with the exclusive right to provide electric service.

AEP’s transmission and distribution utility subsidiaries hold franchises or other rights to provide electric service in various municipalities and regions in their service areas. In some cases, these franchises provide the utility with the exclusive right to provide electric service. These franchises have varying provisions and expiration dates.

The FERC has jurisdiction over certain issuances of securities of most of AEP’s public utility subsidiaries, the acquisition of securities of utilities, the acquisition or sale of certain utility assets and mergers with another electric utility or holding company.

AEGCo, APCo, I&M, KGPCo, KPCo and WPCo are members of PJM. PSO and SWEPCo are members of SPP. The FERC has jurisdiction over certain issuances of securities of most of AEP’s public utility subsidiaries, the acquisition of securities of utilities, the acquisition or sale of certain utility assets and mergers with another electric utility or holding 14 company.

Hall Executive Vice President and Chief Commercial Officer Age 50 Executive Vice President and Chief Commercial Officer since September 2022. Executive Vice President - Energy Supply from July 2021 to September 2022. President and Chief Operating Officer of AEP Energy Supply LLC since July 2021. President of AEP Energy, Inc. since May 2017.

President and Chief Operating Officer of AEP Energy Supply LLC since July 2021. President of AEP Energy, Inc. since May 2017. Therace M. Risch Executive Vice President and Chief Information & Technology Officer Age 50 Executive Vice President since July 2021. Chief Information & Technology Officer since May 2020. Senior Vice President from April 2020 to July 2021.

The major CAA programs affecting AEP’s power plants are described below. The states implement and administer many of these programs and could impose additional or more stringent requirements.

The states implement and administer many of these programs and could impose additional or more stringent requirements.

AEP’s revolving credit agreement (which backstops the commercial paper program) includes covenants and events of default typical for this type of facility, including a maximum debt/capital test.

AEP’s revolving credit agreements (which backstop the commercial paper program) include covenants and events of default typical for these types of facilities, including a maximum debt/capital test.

As of December 31, 2022, women comprised approximately 20% of AEP’s workforce and 20% was represented by racially or ethnically diverse employees. 12 Our DEI progress is tied to enterprise, business unit and operating company annual incentive compensation objectives, which is measured through our annual employee culture survey.

As of December 31, 2023, approximately 21% of AEP’s total workforce was represented by racially or ethnically diverse employees. Our progress is tied to enterprise, business unit and operating company annual incentive compensation objectives, which is measured through our annual employee culture survey. 2023 marks our tenth consecutive year of formally surveying employees about their experiences with culture at AEP.

In April 2021, AEGCo and I&M executed an agreement to purchase 100% of the interests in Rockport Plant, Unit 2 effective at the end of the lease term on December 7, 2022.

The UPA will continue in effect until the debt obligations of AEGCo secured by the Rockport Plant have been satisfied and discharged (currently expected to be December 2028). In April 2021, AEGCo and I&M executed an agreement to purchase 100% of the interests in Rockport Plant, Unit 2 effective at the end of the lease term on December 7, 2022.

The TA defines how the parties to the agreement share the revenues associated with their transmission facilities and the costs of transmission service provided by PJM. The TA has been approved by the FERC. Transmission Coordination Agreement and Open Access Transmission Tariff PSO, SWEPCo and AEPSC are parties to the TCA.

The TA has been approved by the FERC. Transmission Coordination Agreement and Open Access Transmission Tariff PSO, SWEPCo and AEPSC are parties to the TCA.

In July 2021, AEP submitted reply comments. AEP is awaiting a final rule from the FERC. In the annual rate base filings described above, the State Transcos in aggregate filed rate base totals of $9.9 billion, $8.4 billion and $7 billion for 2022, 2021 and 2020, respectively.

In the annual rate base filings described above, the State Transcos in aggregate filed rate base totals of $10.7 billion, $9.9 billion and $8.4 billion for 2023, 2022 and 2021, respectively.

Chief Human Resources Officer since August 2021. Senior Vice President from August 2021 to December 2022. Chief Human Resources Officer of Flex, LTD from May 2019 to July 2021. Senior Vice President, Human Resources, Electrical Sector of Eaton from August 2016 to May 2019. Charles E.

Senior Vice President, Human Resources, Electrical Sector of Eaton from August 2016 to May 2019. Charles E. Zebula Executive Vice President - Chief Financial Officer Age 63 Executive Vice President and Chief Financial Officer since September 2023. Executive Vice President - Portfolio Optimization from July 2021 to September 2023.

Corporate Governance In response to environmental issues and in connection with its assessment of AEP’s strategic plan, the Board of Directors continually reviews the risks posed by new environmental rules and requirements that could alter the retirement date of coal-fired generation assets.

Management believes its experience providing robust energy efficiency programs in several states positions AEP to be a cost-effective provider of these programs as states develop their implementation plans. 5 Corporate Governance In response to environmental issues and in connection with its assessment of AEP’s strategic plan, the Board of Directors continually reviews the risks posed by new environmental rules and requirements that could alter the retirement date of coal-fired generation assets.

The formula rates establish rates for a one-year period based on the current projects in-service and proposed projects for a defined timeframe. The formula rates also include a true-up calculation for the previous year’s billings, allowing for over/under-recovery of the transmission owner’s ATRR.

The formula rates also include a true-up calculation for the previous year’s billings, allowing for over/under-recovery of the transmission owner’s ATRR.

ETT sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) filings.

ETT sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) filings. ETT may file interim TCOS filings semi-annually to update its rates to reflect changes in its net invested capital.

The FERC regulations require AEP’s vertically integrated public utility subsidiaries to provide open access transmission service at FERC-approved rates, and AEP has approved cost-based formula transmission rates on file at the FERC. The FERC also regulates unbundled transmission service to retail customers.

FERC The FERC regulates rates for interstate power sales at wholesale, transmission of electric power, accounting and other matters, including construction and operation of hydroelectric projects. The FERC regulations require AEP’s vertically integrated public utility subsidiaries to provide open access transmission service at FERC-approved rates, and AEP has approved cost-based formula transmission rates on file at the FERC.

AEP Texas is engaged in the transmission and distribution of electric power to approximately 1,094,000 retail customers through REPs in west, central and southern Texas. AEP’s transmission and distribution utility subsidiaries own and operate transmission and distribution lines and other facilities to deliver electric power. See Item 2 – Properties, for more information regarding the transmission and distribution lines.

AEP’s transmission and distribution utility subsidiaries own and operate transmission and distribution lines and other facilities to deliver electric power. See Item 2 – Properties, for more information regarding the transmission and distribution lines. Transmission and distribution services are sold to retail customers of AEP’s transmission and distribution utility subsidiaries in their service territories.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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2022 filing

2023 filing

Biggest changeOur financial position may be adversely impacted if announced dispositions do not occur as planned or if assets under strategic evaluation lose value. (Applies to AEP) In October 2021, AEP entered into an agreement to sell KPCo and KTCo for approximately a $2.85 billion enterprise value.

Biggest changeAn inability to access debt and equity may limit AEP’s ability to pursue improvements or acquisitions that it may otherwise rely on for future growth. 26 Our financial position may be adversely impacted if announced dispositions do not occur as planned or if assets under strategic evaluation lose value.

Their ability to meet their financial obligations associated with their indebtedness and to pay dividends is primarily dependent on the earnings and cash flows of their operating subsidiaries, primarily their regulated utilities, and the ability of their subsidiaries to pay dividends to, or repay loans from them.

Existing, new or changed rules of these RTOs could result in significant additional fees and increased costs to participate in those structures, including the cost of transmission facilities built by others due to changes in transmission rate design. In addition, these RTOs may assess costs resulting from improved transmission reliability, reduced transmission congestion and firm transmission rights.

Existing, new or changed rules of these RTOs could result in significant additional fees and increased 23 costs to participate in those structures, including the cost of transmission facilities built by others due to changes in transmission rate design. In addition, these RTOs may assess costs resulting from improved transmission reliability, reduced transmission congestion and firm transmission rights.

If AEP’s ability to access capital becomes significantly constrained, AEP’s interest costs will likely increase and could reduce future net income and cash flows and negatively impact financial condition. AEP and AEPTCo have no income or cash flow apart from dividends paid or other payments due from their subsidiaries.

If AEP’s ability to access capital becomes significantly constrained, AEP’s interest costs will likely increase and that could reduce future net income and cash flows and negatively impact financial condition. AEP and AEPTCo have no income or cash flow apart from dividends paid or other payments due from their subsidiaries.

A successful cyber-attack on the systems that control generation, transmission, distribution or other assets could severely disrupt business operations, preventing service to customers or collection of revenues. The breach of certain business systems could affect the ability to 36 correctly record, process and report financial information.

A successful cyber-attack on the systems that control generation, transmission, distribution or other assets could severely disrupt business operations, preventing service to customers or collection of revenues. The breach of certain business systems could affect the ability to correctly record, process and report financial information.

All aspects of AEP’s rates accepted or approved by the FERC, including the formula rate templates, the rates of return on the 32 actual equity portion of its respective capital structures and the approved targeted capital structures, are subject to challenge by interested parties at the FERC, or by the FERC on its own initiative.

All aspects of AEP’s rates accepted or approved by the FERC, including the formula rate templates, the rates of return on the actual equity portion of its respective capital structures and the approved targeted capital structures, are subject to challenge by interested parties at the FERC, or by the FERC on its own initiative.

AEP may not recover all costs related to mitigating these physical and financial risks. To the extent climate change impacts a region’s economic health, it may also impact revenues. AEP’s financial performance is tied to the health of the regional economies AEP serves.

AEP may not recover all costs related to mitigating these physical and financial risks. 29 To the extent climate change impacts a region’s economic health, it may also impact revenues. AEP’s financial performance is tied to the health of the regional economies AEP serves.

Although estimates take into account the expected probability of default by a counterparty, actual exposure to a default by a counterparty may be greater than the estimates predict. 44 AEP relies on electric transmission facilities that AEP does not own or control.

Although estimates take into account the expected probability of default by a counterparty, actual exposure to a default by a counterparty may be greater than the estimates predict. AEP relies on electric transmission facilities that AEP does not own or control.

These developments can challenge AEP’s competitive ability to maintain relatively low cost, efficient and reliable operations, to establish fair regulatory mechanisms and to provide cost-effective programs and services to customers.

These developments can challenge AEP’s competitive ability to maintain relatively low cost, efficient and reliable operations, to establish fair regulatory mechanisms and 22 to provide cost-effective programs and services to customers.

Operating these facilities involves many risks, including: • Operator error and breakdown or failure of equipment or processes. • Operating limitations that may be imposed by environmental or other regulatory requirements. • Labor disputes. • Compliance with mandatory reliability standards, including mandatory cyber security standards. • Information technology failure that impairs AEP’s information technology infrastructure or disrupts normal business operations. • Information technology failure that affects AEP’s ability to access customer information or causes loss of confidential or proprietary data that materially and adversely affects AEP’s reputation or exposes AEP to legal claims. • Supply chain disruptions and inflation. • Fuel or water supply interruptions caused by transportation constraints, adverse weather such as drought, non-performance by suppliers and other factors. • Catastrophic events such as fires, earthquakes, explosions, hurricanes, tornados, ice storms, terrorism (including cyber-terrorism), floods or other similar occurrences. • Fuel costs and related requirements triggered by financial stress in the coal industry.

Operating these facilities involves many risks, including: • Operator error and breakdown or failure of equipment or processes. • Operating limitations that may be imposed by environmental or other regulatory requirements. • Labor disputes. • Compliance with mandatory reliability standards, including mandatory cybersecurity standards. • Information technology failure that impairs AEP’s information technology infrastructure or disrupts normal business operations. • Information technology failure that affects AEP’s ability to access customer information or causes loss of confidential or proprietary data that materially and adversely affects AEP’s reputation or exposes AEP to legal claims. • Supply chain disruptions and inflation. • Fuel or water supply interruptions caused by transportation constraints, adverse weather such as drought, non-performance by suppliers and other factors. • Catastrophic events such as fires, earthquakes, explosions, hurricanes, tornadoes, ice storms, terrorism (including cyber-terrorism), floods or other similar occurrences. • Fuel costs and related requirements triggered by financial stress in the coal industry.

AEP and I&M are, therefore, subject to the risks of nuclear generation, which include the following: • The potential harmful effects on the environment and human health due to an adverse incident/event resulting from the operation of nuclear facilities and the storage, handling and disposal of radioactive materials such as SNF. • Limitations on the amounts and types of insurance commercially available to cover losses that might arise in connection with nuclear operations. • Uncertainties with respect to contingencies and assessment amounts triggered by a loss event (federal law requires owners of nuclear units to purchase the maximum available amount of nuclear liability insurance and potentially contribute to the coverage for losses of others). • Uncertainties with respect to the technological and financial aspects of decommissioning nuclear plants at the end of their licensed lives.

AEP and I&M are, therefore, subject to the risks of nuclear generation, which include the following: • The potential harmful effects on the environment and human health due to an adverse incident/event resulting from the operation of nuclear facilities and the storage, handling and disposal of radioactive materials such as SNF. • Limitations on the amounts and types of insurance commercially available to cover losses that might arise in connection with nuclear operations. • Uncertainties with respect to contingencies and assessment amounts triggered by a loss event (federal law requires owners of nuclear units to purchase the maximum available amount of nuclear liability insurance unless the NRC specifies a lesser amount and potentially contribute to the coverage for losses of others). • Uncertainties with respect to the technological and financial aspects of decommissioning nuclear plants at the end of their licensed lives.

AEP is exposed to the risk that counterparties that owe AEP money or the delivery of a commodity, including power, could breach their obligations.

AEP is exposed to the risk that counterparties that owe AEP 33 money or the delivery of a commodity, including power, could breach their obligations.

As a result, prevailing economic conditions may reduce future net income and cash flows and negatively impact financial condition. 38 Volatility in the securities markets, interest rates, and other factors could substantially increase defined benefit pension and other postretirement plan costs and the costs of nuclear decommissioning.

As a result, prevailing economic conditions may reduce future net income and cash flows and negatively impact financial condition. 27 Volatility in the securities markets, interest rates, and other factors could substantially increase defined benefit pension and other postretirement plan costs and the costs of nuclear decommissioning.

(Applies to all Registrants) AEP is involved in legal proceedings, claims and litigation arising out of its business operations, the most significant of which are summarized in Note 6 - Commitments, Guarantees and Contingencies included in the 2022 Annual Report.

Instead, under the provisions of certain affiliate contracts, it is permitted to occupy and maintain its facilities upon real property held by the respective AEP System utility affiliate that overlay its operations.

Instead, under the provisions of certain affiliate contracts, it is permitted to occupy and maintain its facilities upon real property held by the respective AEP subsidiary utility affiliate that overlay its operations.

Changes in regulatory policies and advances in batteries or energy storage, wind turbines and photovoltaic solar cells are reducing costs of new technology to levels that are making them competitive with some central station electricity production and delivery.

Changes in regulatory policies and advances in batteries or energy storage, wind turbines, small modular reactors and photovoltaic solar cells are reducing costs of new technology to levels that are making them competitive with some central station electricity production and delivery.

While there have been immaterial incidents of phishing, unauthorized access to technology systems, financial fraud, and disruption of remote access across the AEP System, there has been no material impact on business or operations from these attacks.

While there have been immaterial incidents of phishing, unauthorized access to technology systems, financial fraud, and disruption of remote access across the AEP subsidiaries, there has been no material impact on business or operations from these attacks to date.

To limit the risks of these construction projects, AEP’s subsidiaries enter into equipment purchase orders and construction contracts and incur engineering and design service costs in advance of receiving necessary regulatory approvals and/or siting or environmental permits.

To limit the risks of these construction projects, AEP’s subsidiaries enter into interconnection and service agreements, equipment purchase orders and construction contracts and incur engineering and design service costs in advance of receiving necessary regulatory approvals, cost recovery and/or siting or environmental permits.

Regulation of greenhouse gas emissions could materially increase costs to AEP and its customers or cause some electric generating units to be uneconomical to operate or maintain.

Regulation of greenhouse gas emissions and/or voluntary climate goals could materially increase costs to AEP and its customers or cause some electric generating units to be uneconomical to operate or maintain.

(Applies to AEP and I&M) I&M owns the Cook Plant, which consists of two nuclear generating units for a rated capacity of 2,296 MWs, or about a tenth of the regulated generating capacity in the AEP System.

In 2022, AEP Texas’ two largest REPs accounted for 45% of its operating revenue. Any delay or default in payment by REPs could adversely affect cash flows, financial condition and results of operations.

In 2023, AEP Texas’ two largest REPs accounted for 41% of its operating revenue. Any delay or default in payment by REPs could adversely affect cash flows, financial condition and results of operations.

The complaints seek monetary damages among other forms of relief. In February 2021, AEP Texas received a Civil Investigative Demand from the Office of the Attorney General of Texas requesting, among other data, information about its communications to and from ERCOT, PUCT, retail electric providers, utilities, or power generation companies, concerning power outages related to the February 2021 winter storm.

In February 2021, AEP Texas received a Civil Investigative Demand from the Office of the Attorney General of Texas requesting, among other data, information about its communications to and from ERCOT, PUCT, retail electric providers, utilities, or power generation companies, concerning power outages related to the February 2021 winter storm.

(Applies to AEP and AEP Texas) AEP Texas collects receivables from the distribution of electricity from REPs that supply the electricity it distributes to its customers. As of December 31, 2022, AEP Texas did business with approximately 127 REPs.

(Applies to AEP and AEP Texas) AEP Texas collects receivables from the distribution of electricity from REPs that supply the electricity it distributes to its customers. As of December 31, 2023, AEP Texas did business with approximately 124 REPs.

As of December 31, 2022, OVEC has outstanding indebtedness of approximately $1.1 billion, of which APCo, I&M, and OPCo are collectively responsible for $478 million through the ICPA.

As of December 31, 2023, OVEC has outstanding indebtedness of approximately $1.1 billion, of which APCo, I&M, and OPCo are collectively responsible for $465 million through the ICPA.

However, AEP cannot guarantee that security efforts will detect or prevent breaches, operational incidents, or other breakdowns of technology systems and network infrastructure and cannot provide any assurance that such incidents will not have a material adverse effect in the future. The amount of taxes imposed on AEP could change.

However, AEP cannot guarantee that security efforts will detect or prevent future breaches, operational incidents, or other breakdowns of technology systems and network infrastructure and cannot provide any assurance that such incidents will not have a material adverse effect in the future.

This could have a material impact on revenues. In addition, AEP could be required to invest significantly in additional emission control equipment, accelerate the timing of capital expenditures, pay damages or penalties and/or halt operations. Unless recovered, those costs could reduce future net income and cash flows and harm financial condition.

In addition, AEP could be required to invest significantly in additional emission control equipment, accelerate the timing of capital expenditures, pay damages or penalties and/or halt operations. Unless recovered, those costs could reduce future net income and cash flows and harm financial condition.

(Applies to AEPTCo) AEPTCo’s principal transmission service customers are its affiliates in the AEP System. Management expects that these affiliates will continue to be AEPTCo’s principal transmission service customers for the foreseeable future. For the year ended December 31, 2022, its affiliates were responsible for approximately 79% of the consolidated transmission revenues of AEPTCo.

Management expects that these affiliates will continue to be AEPTCo’s principal transmission service customers for the foreseeable future. For the year ended December 31, 2023, AEP affiliates were responsible for approximately 79% of the consolidated transmission revenues of AEPTCo.

The potential effects of greenhouse gas emission limits on AEP's electric generation units are subject to significant uncertainties based on, among other things, the timing of the implementation of any new requirements, the required levels of emission reductions, the nature of any market-based or tax-based mechanisms adopted to facilitate reductions, the relative availability of greenhouse gas emission reduction offsets, the development of cost-effective, commercial-scale carbon capture and storage technology and supporting regulations and liability mitigation measures, and the range of available compliance alternatives. 43 AEP’s results of operations could be materially adversely affected to the extent that new federal or state laws or regulations impose any new greenhouse gas emission limits.

AEP maintains property and casualty insurance, but AEP is not fully insured against all potential hazards incident to AEP’s business, such as damage to poles, towers and lines or losses caused by outages. AEPTCo depends on its affiliates in the AEP System for a substantial portion of its revenues.

AEP maintains property and casualty insurance, but AEP is not fully insured against all potential hazards incident to AEP’s business, such as damage to poles, towers and lines or losses caused by outages. AEPTCo depends on AEP affiliates for a substantial portion of its revenues. (Applies to AEPTCo) AEPTCo’s principal transmission service customers are AEP affiliates.

These disruptions and shortages could adversely impact business operations and corporate strategy. The constraints in the supply chain could restrict the availability and delay the construction, maintenance or repair of items that are needed to support normal operations or are required to execute on AEP’s corporate strategy for continued capital investment in utility equipment.

The constraints in the supply chain could restrict the availability and delay the construction, maintenance or repair of items that are needed to support normal operations or are required to execute on AEP’s corporate strategy for continued capital investment in utility equipment and impact AEP’s strategy to transition its generation fleet.

The impact of new laws, regulations and policies and the related interpretations, as well as changes in enforcement practices or regulatory scrutiny generally cannot be predicted, and changes in applicable laws, regulations and policies and the related interpretations and enforcement practices may require extensive system and operational changes, be difficult to implement, increase AEP’s operating costs, require significant capital expenditures, or adversely impact the cost or attractiveness of the products or services AEP offers, or result in adverse publicity and harm AEP’s reputation.

(Applies to all Registrants) AEP relies on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows or proceeds from the strategic sale of assets and investments, including subsidiaries such as the planned sale of KPCo and KTCo and AEP Renewables’ competitive contracted renewable portfolio, and insurance markets to assist in managing its risk and liability profile.

(Applies to all Registrants) AEP relies on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows or proceeds from the strategic sale of assets and investments, including subsidiaries or portions thereof, and insurance markets to assist in managing its risk and liability profile.

Further, in the event that alternative generation resources are mandated, subsidized or encouraged through legislation or regulation or otherwise are economically competitive and added to the available generation supply, such resources could displace a higher marginal cost generating units, which could reduce the price at which market participants sell their electricity. 33 AEP may not recover costs incurred to begin construction on projects that are canceled.

Certain regulatory and legislative bodies have introduced or are considering requirements and/or incentives to further reduce energy consumption. Additionally, technological advances or other improvements in or applications of technology could lead to declines in per capita energy consumption.

A majority of the electricity generated by the AEP System is produced by the combustion of fossil fuels. Emissions of nitrogen and sulfur oxides, mercury and particulates and the discharge and disposal of solid waste (including coal-combustion residuals or CCR) resulting from fossil fueled generation plants are subject to increased regulations, controls and mitigation expenses.

Emissions of nitrogen and sulfur oxides, mercury and particulates and the discharge and disposal of solid waste (including coal-combustion residuals or CCR) resulting from fossil fueled generation plants are subject to increased regulations, controls and mitigation expenses.

AEP’s transmission investment strategy and execution are dependent on federal and state regulatory policy. (Applies to all Registrants) A significant portion of AEP’s earnings is derived from transmission investments and activities. FERC policy currently favors the expansion and updating of the transmission infrastructure within its jurisdiction.

(Applies to all Registrants) A significant portion of AEP’s earnings is derived from transmission investments and activities. FERC policy currently favors the expansion and updating of the transmission infrastructure within its jurisdiction.

In addition, the impact of continued public scrutiny of HB 6 is not known, and may have an adverse impact on AEP and OPCo, including their relationship with regulatory and legislative authorities, customers and other stakeholders. AEP is a defendant in current litigation relating to HB 6 and AEP or OPCo may be involved in future litigation.

In addition, the impact of continued public scrutiny of HB 6 is not known and may have an adverse impact on AEP and OPCo, including their relationship with regulatory and legislative authorities, customers and other stakeholders.

In this case, costs, including costs for contractors to replace employees, productivity costs and safety costs, may rise. Failure to hire and adequately train replacement employees, including the transfer of significant internal historical knowledge and expertise to the new employees, or the future availability and cost of contract labor may adversely affect the ability to manage and operate the business.

Failure to hire and adequately train replacement employees, including the transfer of significant internal historical knowledge and expertise to the new employees, or the future availability and cost of contract labor may adversely affect the ability to manage and operate the business.

AEP can give no assurance that (a) the relevant AEP System utility affiliates will continue to be affiliates of AEPTCo, (b) suitable replacement arrangements can be obtained in the event that the relevant AEP System utility affiliates are not its affiliates and (c) the underlying easements and other rights are sufficient to permit AEPTCo to operate its assets in a manner free from interruption. 42 Compliance with legislative and regulatory requirements may lead to increased costs and result in penalties.

AEP can give no assurance that (a) the relevant AEP subsidiary utility affiliates will continue to be affiliates of AEPTCo, (b) suitable replacement arrangements can be obtained in the event that the relevant AEP subsidiary utility affiliates are not its affiliates and (c) the underlying easements and other rights are sufficient to permit AEPTCo to operate its assets in a manner free from interruption.

(Applies to all Registrants) AEP’s business plan for the construction of new projects involves a number of risks, including construction delays, non-performance by equipment and other third-party suppliers and increases in equipment and labor costs.

(Applies to all Registrants) AEP’s business plan for the construction of new projects, including providing service to new large load customers, involves a number of risks, including incomplete or inaccurate forecasting, planning and procurement, construction delays, non-performance by equipment and other third-party suppliers and increases in equipment and labor costs.

Volatility, increased interest rates and reduced liquidity in the financial markets could affect AEP’s ability to raise capital on reasonable terms to fund capital needs, including construction costs and refinancing maturing indebtedness.

If any of these projects are canceled for any reason, including failure to receive necessary regulatory approvals and/or siting or environmental permits, significant cancellation penalties under the equipment purchase orders and construction contracts could occur.

If any of these projects are canceled for any reason, including shifts in large customer needs, preferences or financial stability, failure to receive necessary regulatory approvals, cost recovery and/or siting or environmental permits, significant unrecoverable costs or cancellation penalties under the equipment purchase orders and construction contracts could occur.

Shareholder activism could cause AEP to incur significant expense, hinder execution of AEP’s business strategy and impact AEP’s stock price. (Applies to all Registrants) Shareholder activism, which can take many forms and arise in a variety of situations, could result in substantial costs and divert management’s and AEP’s board’s attention and resources from AEP’s business.

(Applies to all Registrants) Shareholder activism, which can take many forms and arise in a variety of situations, could result in substantial costs and divert management’s and AEP’s board’s attention and resources from AEP’s business.

Any regulatory action or litigation outcome that triggers a reversal of a regulatory asset or deferred cost generally results in an impairment to the balance sheet and a charge to the income statement of the company involved. See Note 4 – Rate Matters included in the 2022 Annual Report for additional information.

Costs also may include replacement power, any unamortized investment at the end of the useful life of the Cook Plant (whether scheduled or premature), the carrying costs of that investment and retirement costs. The ability to obtain adequate and timely recovery of costs associated with the Cook Plant is not assured.

Although AEP typically recovers environmental expenditures, there can be no assurance in the future that AEP can recover such costs which could reduce future net income and cash flows and possibly harm financial condition. Courts adjudicating nuisance and other similar claims in the future may order AEP to pay damages or to limit or reduce emissions.

Changes in precipitation resulting in droughts, water shortages or floods could adversely affect operations, principally the fossil fuel generating units. A negative impact to water supplies due to long-term drought conditions or severe flooding could adversely impact AEP’s ability to provide electricity to customers, as well as increase the price they pay for energy.

A change in wind patterns or a negative impact to water supplies due to long-term drought conditions or severe flooding could adversely impact AEP’s ability to provide electricity to customers, as well as increase the price they pay for energy.

Increased energy use due to weather changes may require AEP to invest in additional generating assets, transmission and other infrastructure to serve increased load. Decreased energy use due to weather changes may affect financial condition through decreased revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stress, including service interruptions.

The plaintiffs in these actions generally seek recovery of damages and other relief. If future actions are resolved against AEP, substantial modifications or retirement of AEP’s existing coal-fired power plants could be required, and AEP might be required to purchase power from third-parties to fulfill AEP’s commitments to supply power to AEP customers.

If future actions are resolved against AEP, substantial modifications or retirement of AEP’s existing coal-fired power plants could be required, and AEP might be required to purchase power from third-parties to fulfill AEP’s commitments to supply power to AEP customers. This could have a material impact on revenues.

Extreme weather conditions in general require more system 40 backup, adding to costs, and can contribute to increased system stress, including service interruptions. Weather conditions outside of the AEP service territory could also have an impact on revenues. AEP buys and sells electricity depending upon system needs and market opportunities.

Weather conditions outside of the AEP service territory could also have an impact on revenues. AEP buys and sells electricity depending upon system needs and market opportunities.

(Applies to all Registrants except AEP Texas and AEPTCo) In the past, there have been several cases seeking damages based on allegations of federal and state common law nuisance in which AEP, among others, were defendants. In general, the actions allege that emissions from the defendants’ power plants constitute a public nuisance.

Courts adjudicating nuisance and other similar claims in the future may order AEP to pay damages or to limit or reduce emissions. (Applies to all Registrants except AEP Texas and AEPTCo) In the past, there have been several cases seeking damages based on allegations of federal and state common law nuisance in which AEP, among others, were defendants.

AEP and OPCo engaged in lobbying efforts and provided testimony during the legislative process in connection with HB 6. In July 2020, an investigation led by the U.S. Attorney’s Office resulted in a federal grand jury indictment of an Ohio legislator and associates in connection with an alleged racketeering conspiracy involving the adoption of HB 35 6.

AEP and OPCo engaged in lobbying efforts and provided testimony during the legislative process in connection with HB 6. In July 2020, an investigation led by the U.S.

The company responded to the Civil Investigative Demand in March 2021. Management is unable to predict the course or outcome of these or any future litigation or investigations or their impact, if any, on future results of operations, financial condition and cash flows.

Management is unable to predict the course or outcome of these or any future litigation or investigations or their impact, if any, on future results of operations, financial condition and cash flows. 30 Hazards associated with high-voltage electricity transmission may result in suspension of AEP’s operations or the imposition of civil or criminal penalties.

(Applies to all Registrants) Results are likely to be affected by differences in the market and transmission structures in various regional power markets. The rules governing the various RTOs, including SPP and PJM, may also change from time to time which could affect costs or revenues.

The rules governing the various RTOs, including SPP and PJM, may also change from time to time which could affect costs or revenues.

The price of energy, as a factor in a region’s cost of living as well as an important input into the cost of goods and services, has an impact on the economic health of the communities within the AEP System. Management cannot predict the outcome of the legal proceedings relating to AEP’s business activities.

The price of energy, as a factor in a region’s cost of living as well as an important input into the cost of goods and services, has an impact on the economic health of the communities within AEP’s service territories. Climate change may impact the economy, which could impact our sales and revenues.

(Applies to all Registrants) Certain events, such as an aging workforce without appropriate replacements, mismatch of skillset or complement to future needs, or unavailability of contract resources may lead to operating challenges and increased costs. The challenges include potential higher rates of existing employee departures, lack of resources, loss of knowledge and a lengthy time period associated with skill development.

Failure to attract and retain an appropriately qualified workforce could harm results of operations. (Applies to all Registrants) Certain events, such as an aging workforce without appropriate replacements, mismatch of skillset or complement to future needs, or unavailability of contract resources may lead to operating challenges and increased costs.

RISKS RELATED TO MARKET, ECONOMIC OR FINANCIAL VOLATILITY AND OTHER RISKS AEP’s financial performance may be adversely affected if AEP is unable to successfully operate facilities or perform certain corporate functions. (Applies to all Registrants) Performance is highly dependent on the successful operation of generation, transmission and/or distribution facilities.

AEP is a defendant in current litigation relating to HB 6 and AEP or OPCo may be involved in future litigation. 24 RISKS RELATED TO MARKET, ECONOMIC OR FINANCIAL VOLATILITY AND OTHER RISKS AEP’s financial performance may be adversely affected if AEP is unable to successfully operate facilities or perform certain corporate functions.

RISKS RELATED TO OWNING AND OPERATING GENERATION ASSETS AND SELLING POWER Costs of compliance with existing and evolving environmental laws are significant. (Applies to all Registrants except AEPTCo) Operations are subject to extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality, waste management, natural resources and health and safety.

(Applies to all Registrants except AEPTCo) Operations are subject to extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality, waste management, natural resources and health and safety. A majority of the electricity generated by AEP subsidiaries is produced by the combustion of fossil fuels.

If power generation is disrupted or if power generation capacity is inadequate, sales of transmission and distribution services may be diminished or interrupted, and results of operations, financial condition and cash flows could be adversely affected. 41 Management is unable to predict the course, results or impact, if any, of current or future litigation or investigations relating to the extreme winter weather in Texas in February 2021.

Management is unable to predict the course, results or impact, if any, of current or future litigation or investigations relating to the severe winter weather in Texas in February 2021.

The ability to obtain adequate and timely recovery of costs associated with the Cook Plant is not assured. 34 AEP subsidiaries are exposed to risks through participation in the market and transmission structures in various regional power markets that are beyond their control.

AEP subsidiaries are exposed to risks through participation in the market and transmission structures in various regional power markets that are beyond their control. (Applies to all Registrants) Results are likely to be affected by differences in the market and transmission structures in various regional power markets.

(Applies to AEP and AEP Texas) AEP Texas transmits and distributes electric power that the REPs obtain from power generation facilities owned by third-parties.

(Applies to AEP and AEP Texas) AEP Texas transmits and distributes electric power that the REPs obtain from power generation facilities owned by third-parties. If power generation is disrupted or if power generation capacity is inadequate, sales of transmission and distribution services may be diminished or interrupted, and results of operations, financial condition and cash flows could be adversely affected.

The outcome of the U.S. Attorney’s Office investigation and its impact on HB 6 is not known. If certain provisions of HB 6 were to be eliminated, it is unclear whether new legislation addressing similar issues would be adopted.

Certain defendants in that case had previously plead guilty and, in March 2023, a federal jury convicted the Ohio legislator and another individual of participating in the racketeering conspiracy. If certain provisions of HB 6 were to be eliminated, it is unclear whether new legislation addressing similar issues would be adopted.

Removed

In September 2022, the agreement was amended to reduce the purchase price to approximately $2.646 billion, among other terms. The sale remains subject to regulatory approval and if it is not approved on terms acceptable to AEP or if the sale does not occur for any reason, it could reduce future net income and cash flow and impact financial condition.

Added

In addition, regulators have initiated and may initiate additional proceedings to investigate the prudence of costs in the AEP regulated utility businesses and in base rates and examine, among other things, the reasonableness or prudence of operation and maintenance practices, level of expenditures (including storm costs and costs associated with capital projects), allowed rates of return and rate base, proposed resource acquisitions, and previously incurred capital expenditures that the regulated utility businesses seek to place in rates.

Removed

In February 2023, AEP signed an agreement to sell the AEP Renewables’ competitive contracted renewables portfolio to a nonaffiliated party for $1.5 billion including the assumption of project debt. The sale is subject to regulatory approval.

Added

The regulators may disallow costs subject to their jurisdiction found not to have been prudently incurred or found not to have been incurred in compliance with applicable tariffs, creating some risk to the ultimate recovery of those costs. Regulatory proceedings relating to rates and other matters typically involve multiple parties seeking to limit or reduce rates.

Removed

Any announced sale of assets and investments, including subsidiaries, may not occur for any number of reasons beyond our control, including regulatory approval on terms that are acceptable. 37 AEP has initiated a strategic evaluation for its ownership in AEP Energy, a wholly-owned retail energy supplier that supplies electricity and/or natural gas to residential, commercial and industrial customers.

Added

Traditional base rate proceedings, as opposed to formula rate plans, generally have long timelines, are primarily based on historical costs, and may or may not be limited in scope or duration by statute.

Removed

AEP has not made a decision regarding the potential alternatives and expects to complete the evaluation in the first half of 2023. Certain of these alternatives could result in a loss which could reduce future net income and cash flow and impact financial condition.

Added

The length of these base rate proceedings can cause the regulated utility businesses to experience regulatory lag in recovering costs through rates, such that they may not fully recover all costs during the rate effective period and may, therefore, earn less than their allowed returns.

Removed

Some or all of these factors, could impact the demand for electricity. 39 Failure to attract and retain an appropriately qualified workforce could harm results of operations.

Added

Decisions are typically subject to appeal, further exacerbating the regulatory lag and leading to additional uncertainty associated with rate case proceedings.

Removed

At its peak, approximately 468,000 (44%) AEP Texas customers were without power. AEP Texas and other AEP entities are named in approximately 100 lawsuits generally alleging the failure to exercise reasonable care in maintaining and updating their generation, transmission and distribution facilities in order to prevent cold weather failures and other related negligence.

Added

The AEP regulated utility businesses have large customer and stakeholder bases and, as a result, could be the subject of public criticism or adverse publicity focused on issues including the operation and maintenance of their assets and infrastructure, their preparedness for major storms or other extreme weather events and/or the time it takes to restore service after such events, or the quality of their service or the reasonableness of the cost of their service.

Removed

Hazards associated with high-voltage electricity transmission may result in suspension of AEP’s operations or the imposition of civil or criminal penalties.

Added

Criticism or adverse publicity of this nature could render legislatures and other governing bodies, public service commissions and other regulatory authorities, and government officials less likely to view the applicable operating company in a favorable light and could potentially negatively affect legislative or regulatory processes or outcomes, as well as lead to increased regulatory oversight or more stringent legislative or regulatory requirements or other legislation or regulatory actions that adversely affect the regulated utility businesses.

Added

The regulated utility businesses, and the energy industry as a whole, have experienced a period of rising costs and investments and an upward trend in spending, especially with respect to infrastructure investments, which is likely to continue in the foreseeable future and could result in more frequent rate cases and requests for, and the continuation of, cost recovery mechanisms, all of which could face resistance from customers and other stakeholders especially in a rising cost environment, whether due to inflation or high fuel prices or otherwise, and/or in periods of economic decline or hardship.

Added

Significant increases in costs could increase financing needs and otherwise adversely affect AEP’s business, financial position, results of operation, or cash flows. See Note 4 – Rate Matters included in the 2023 Annual Report for additional information. 21 AEP’s transmission investment strategy and execution are dependent on federal and state regulatory policy.

Added

AEP may not recover costs incurred to begin construction on projects that are canceled.

Added

Attorney’s Office resulted in a federal grand jury indictment of an Ohio legislator and associates and Generation Now, an entity registered as a 501(c)(4) social welfare organization, in connection with an alleged racketeering conspiracy involving the adoption of HB 6.

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Item 2. Properties

Properties — owned and leased real estate

15 edited+7 added−8 removed4 unchanged

2022 filing

2023 filing

Biggest changeAPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Buck 3 VA Hydro 11 1912 Byllesby 4 VA Hydro 19 1912 Claytor 4 VA Hydro 76 1939 Leesville 2 VA Hydro 50 1964 London 3 WV Hydro 14 1935 Marmet 3 WV Hydro 14 1935 Niagara 2 VA Hydro 1 1906 Winfield 3 WV Hydro 15 1938 Ceredo 6 WV Natural Gas 516 2001 Dresden 3 OH Natural Gas 665 2012 Smith Mountain 5 VA Pumped Storage 585 1965 Amos 3 WV Steam - Coal 2,930 1971 Mountaineer 1 WV Steam - Coal 1,320 1980 Clinch River 2 VA Steam - Natural Gas 465 1958 Total MWs 6,681 46 I&M Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Berrien Springs 12 MI Hydro 7 1908 Buchanan 10 MI Hydro 3 1919 Constantine 4 MI Hydro 1 1921 Elkhart 3 IN Hydro 3 1913 Mottville 4 MI Hydro 2 1923 Twin Branch Hydro 8 IN Hydro 4 1904 Deer Creek Solar Farm NA IN Solar 3 2016 Olive Solar Farm NA IN Solar 5 2016 St.

Biggest changeAPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Ceredo 6 WV Natural Gas 516 2001 Dresden 3 OH Natural Gas 665 2012 Smith Mountain 5 VA Pumped Storage 585 1965 Amos 3 WV Steam - Coal 2,950 1971 Mountaineer 1 WV Steam - Coal 1,320 1980 Clinch River 2 VA Steam - Natural Gas 465 1958 Hydro (Various Plants) Various VA Hydro 158 1906-1964 Hydro (Various Plants) Various WV Hydro 53 1935-1938 Solar NA VA Solar 5 2023 Total MWs 6,717 I&M Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Rockport (a) 2 IN Steam - Coal 1,310 1984 Cook 2 MI Steam - Nuclear 2,296 1975 Hydro (Various Plants) Various IN Hydro 7 1904-1913 Hydro (Various Plants) Various MI Hydro 13 1908-1923 Solar (Various Plants) NA IN Solar 31 2016-2021 Solar (Various Plants) NA MI Solar 5 2016 Total MWs 3,662 (a) I&M owns a 50% interest in the Rockport Plant units.

Estimated construction expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints, environmental regulations, business opportunities, market volatility, economic trends, supply chain issues, weather, legal reviews and the ability to access capital.

CONSTRUCTION PROGRAM With input from its state utility commissions, the AEP System continuously assesses the adequacy of its transmission, distribution, generation and other facilities to plan and provide for the reliable supply of electric power and energy to its customers.

CONSTRUCTION PROGRAM With input from its state utility commissions, AEP subsidiaries continuously assess the adequacy of their transmission, distribution, generation and other facilities to plan and provide for the reliable supply of electric power and energy to its customers.

In this assessment process, assumptions are continually being reviewed as new information becomes available and assessments and plans are modified, as appropriate. AEP forecasts approximately $6.8 billion of construction expenditures for 2023.

NA Not applicable. 48 SWEPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mattison 4 AR Natural Gas 314 2007 Stall 3 LA Natural Gas 534 2010 Flint Creek (a) 1 AR Steam - Coal 258 1978 Turk (a) 1 AR Steam - Coal 477 2012 Welsh (b) 2 TX Steam - Coal 1,053 1977 Pirkey (a)(c) 1 TX Steam - Lignite 580 1985 Arsenal Hill 1 LA Steam - Natural Gas 110 1960 Knox Lee 1 TX Steam - Natural Gas 344 1950 Lieberman 3 LA Steam - Natural Gas 217 1947 Wilkes 3 TX Steam - Natural Gas 889 1964 Maverick (d) NA OK Wind 156 2021 Sundance (d) NA OK Wind 109 2021 Traverse (d) NA OK Wind 544 2022 Total MWs 5,585 (a) Jointly-owned with nonaffiliated entities.

SWEPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mattison 4 AR Natural Gas 314 2007 Stall 3 LA Natural Gas 534 2010 Flint Creek (a) 1 AR Steam - Coal 259 1978 Turk (a) 1 AR Steam - Coal 477 2012 Welsh (b) 2 TX Steam - Coal 1,053 1977 Arsenal Hill 1 LA Steam - Natural Gas 111 1960 Knox Lee 1 TX Steam - Natural Gas 344 1950 Lieberman 3 LA Steam - Natural Gas 219 1947 Wilkes 3 TX Steam - Natural Gas 889 1964 North Central Wind Energy Facilities (c) NA OK Wind 809 2021-2022 Total MWs 5,009 (a) Jointly-owned with nonaffiliated entities.

Figures presented reflect only the portion owned by SWEPCo. The Arkansas jurisdictional portion of SWEPCo’s interest in Turk Plant is not in rate base. (b) In November 2020, management announced it will cease using coal at the Welsh Plant in 2028. (c) In November 2020, management announced plans to retire the plant in 2023.

Figures presented reflect only the portion owned by SWEPCo. The Arkansas jurisdictional portion of SWEPCo’s interest in Turk Plant is not in rate base. (b) In November 2020, management announced it will cease using coal at the Welsh Plant in 2028. (c) SWEPCo owns a 54.5% interest and PSO owns the remaining 45.5% interest in Sundance, Maverick and Traverse.

The greater portion of the transmission and distribution lines of the AEP System has been constructed over lands of private owners pursuant to easements or along public highways and streets pursuant to appropriate statutory authority.

TITLE TO PROPERTY The AEP System’s generating facilities are generally located on lands owned in fee simple. The greater portion of the transmission and distribution lines of the AEP System has been constructed over lands of private owners pursuant to easements or along public highways and streets pursuant to appropriate statutory authority.

See the “Disposition of KPCo and KTCo” section of Note 7 included in the 2022 Annual Report for additional information. 47 PSO Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Comanche 3 OK Natural Gas 248 1973 Northeastern, Unit 1 1 OK Natural Gas 470 1961 Riverside, Units 3 and 4 2 OK Natural Gas 160 2008 Southwestern, Units 4 and 5 2 OK Natural Gas 168 2008 Weleetka 2 OK Natural Gas 100 1975 Northeastern, Unit 3 1 OK Steam - Coal 465 1979 Northeastern, Unit 2 1 OK Steam - Natural Gas 434 1961 Riverside, Units 1 and 2 2 OK Steam - Natural Gas 896 1974 Southwestern, Units 1, 2 and 3 3 OK Steam - Natural Gas 446 1952 Tulsa 2 OK Steam - Natural Gas 318 1956 Maverick (a) NA OK Wind 131 2021 Sundance (a) NA OK Wind 90 2021 Traverse (a) NA OK Wind 454 2022 Total MWs 4,380 (a) SWEPCo owns a 54.5% interest and PSO owns the remaining 45.5% interest in Sundance, Maverick and Traverse.

PSO Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Comanche 3 OK Natural Gas 237 1973 Northeastern, Unit 1 1 OK Natural Gas 470 1961 Riverside, Units 3 and 4 2 OK Natural Gas 160 2008 Southwestern, Units 4 and 5 2 OK Natural Gas 168 2008 Weleetka 2 OK Natural Gas 84 1975 Northeastern, Unit 3 1 OK Steam - Coal 472 1979 Northeastern, Unit 2 1 OK Steam - Natural Gas 434 1961 Riverside, Units 1 and 2 2 OK Steam - Natural Gas 896 1974 Southwestern, Units 1, 2 and 3 3 OK Steam - Natural Gas 446 1952 Tulsa 2 OK Steam - Natural Gas 318 1956 North Central Wind Energy Facilities (a) NA OK Wind 675 2021-2022 Rock Falls NA OK Wind 155 2023 Total MWs 4,515 (a) PSO owns a 45.5% interest and SWEPCo owns the remaining 54.5% interest in Sundance, Maverick and Traverse.

(d) SWEPCo owns a 54.5% interest and PSO owns the remaining 45.5% interest in Sundance, Maverick and Traverse. NA Not applicable. WPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mitchell (a)(b) 2 WV Steam - Coal 780 1971 (a) WPCo owns 50% in the Mitchell Plant units.

Figures presented reflect only the portion owned by SWEPCo. NA Not applicable. 37 WPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mitchell (a) 2 WV Steam - Coal 780 1971 (a) WPCo owns 50% in the Mitchell Plant units. KPCo owns the remaining 50%.

POTENTIAL UNINSURED LOSSES Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities, including liabilities relating to damage to AEP’s generation plants and costs of replacement power.

See the “Budgeted Capital Expenditures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report for additional information. 38 POTENTIAL UNINSURED LOSSES Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities, including liabilities relating to damage to AEP’s generation plants and costs of replacement power.

For risks related to owning a nuclear generating unit, see the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2022 Annual Report for additional information.

Unless allowed to be recovered through rates, future losses or liabilities which are not completely insured could reduce net income and impact the financial conditions of AEP and subsidiaries. For risks related to owning a nuclear generating unit, see the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2023 Annual Report for additional information.

The following table provides operating information related to the Cook Plant: Cook Plant Unit 1 Unit 2 Year Placed in Operation 1975 1978 Year of Expiration of NRC License 2034 2037 Nominal Net Electrical Rating in MWs 1,084 1,212 Annual Capacity Utilization 2022 79.4 % 86.6 % 2021 96.0 % 84.2 % 2020 87.2 % 94.2 % KPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mitchell (a)(b) 2 WV Steam - Coal 780 1971 Big Sandy 1 KY Steam - Natural Gas 295 1963 Total MWs 1,075 (a) KPCo owns a 50% interest in the Mitchell Plant units.

NA Not applicable. 36 KPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mitchell (a) 2 WV Steam - Coal 780 1971 Big Sandy 1 KY Steam - Natural Gas 295 1963 Total MWs 1,075 (a) KPCo owns a 50% interest in the Mitchell Plant units. WPCo owns the remaining 50%.

(b) California, Colorado, Florida, Hawaii, Illinois, Iowa, Minnesota, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Rhode Island, Texas, Vermont and Wisconsin. (c) Ohio and New Mexico. 50 TRANSMISSION AND DISTRIBUTION FACILITIES The following tables set forth the total overhead circuit miles of transmission and distribution lines of the AEP System and its operating companies.

See the “Planned Sale of AEP Energy and AEP Onsite Partners” section of Executive Overview included in the 2023 Annual Report for additional information. (b) California, Colorado, Florida, Hawaii, Illinois, Iowa, Minnesota, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Rhode Island, Texas, Vermont and Wisconsin. (c) Ohio and Wisconsin.

PROPERTIES GENERATION FACILITIES As of December 31, 2022, the AEP System owned (or leased where indicated) generation plants, with locations and net maximum power capabilities (winter rating), are shown in the following tables: 45 Vertically Integrated Utilities Segment AEGCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Rockport, Units 1 and 2 – 50% of each (a) 2 IN Steam - Coal 1,310 1984 (a) Rockport Plant, Unit 2 was subject to a finance lease with a nonaffiliated company.

Vertically Integrated Utilities Segment AEGCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Rockport (a) 2 IN Steam - Coal 1,310 1984 (a) AEGCo owns a 50% interest in the Rockport Plant units. I&M owns the remaining 50%. Figures presented reflect only the portion owned by AEGCo.

See the “Disposition of KPCo and KTCo” section of Note 7 included in the 2022 Annual Report for additional information. 49 Generation & Marketing Segment Renewable Power Size of Energy Resource AEP Energy Supply, LLC Division Renewable Energy Resource Location In-Service or Under Construction 1,200 MW AEP Renewables Wind Eight states (a) In-service 20 MW AEP Renewables Solar California In-service 20 MW AEP Renewables Solar Utah In-service 125 MW AEP Renewables Solar Nevada In-service 168 MW AEP OnSite Partners Solar Seventeen states (b) In-service 26 MW AEP OnSite Partners Solar Two states (c) Under Construction (a) Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota, Pennsylvania and Texas.

Generation & Marketing Segment Renewable Power Size of Energy Resource AEP Energy Supply, LLC Division Renewable Energy Resource Location In-Service or Under Construction 195 MW AEP OnSite Partners (a) Solar Seventeen states (b) In-service 4 MW AEP OnSite Partners (a) Solar Two states (c) Under Construction (a) In April 2023, AEP made a decision to include AEP Onsite Partners in a sales process that is currently targeted to be completed in the first half of 2024.

Removed

In December 2022, the lease expired at which point I&M and AEGCo acquired 100% of the interests in Unit 2. See the “Rockport Plant Litigation” section of Note 6 included in the 2022 Annual Report for additional information.

Added

ITEM 2. PROPERTIES GENERATION FACILITIES The tables below summarize the net maximum capacity of AEP's owned generation plants as of December 31, 2023. AEP subsidiaries serve customer electricity needs from these facilities and from purchased power in the PJM and SPP markets based on demand and other economic conditions.

Removed

Joseph NA IN Solar 20 2021 Twin Branch Solar Farm NA IN Solar 3 2016 Watervliet NA MI Solar 5 2016 Rockport (Units 1 and 2, 50% of each) (a) 2 IN Steam - Coal 1,310 1984 Cook 2 MI Steam - Nuclear 2,296 1975 Total MWs 3,662 (a) Rockport Plant, Unit 2 was subject to a finance lease with a nonaffiliated company.

Added

AEP's regulated subsidiaries have approved recovery mechanisms in retail jurisdictions that recover the cost of prudently incurred fuel, purchased power and other expenses.

Removed

Added

AEGCo owns the remaining 50%. Figures presented reflect only the portion owned by I&M.

Removed

WPCo owns the remaining 50%. Figures presented reflect only the portion owned by KPCo. (b) In September 2022, pursuant to resolutions under the existing Mitchell Plant agreement, WPCo replaced KPCo as the operator of Mitchell Plant.

Added

Figures presented reflect only the portion owned by KPCo.

Removed

KPCo owns the remaining 50%. Figures presented reflect only the portion owned by WPCo. (b) In September 2022, pursuant to resolutions under the existing Mitchell Plant agreement, WPCo replaced KPCo as the operator of Mitchell Plant.

Added

Figures presented reflect only the portion owned by PSO. NA Not applicable.

Removed

Vertically Integrated Utilities Segment Total Overhead Circuit Miles of Transmission and Distribution Lines APCo 51,620 I&M 20,852 KGPCo 1,406 KPCo 11,182 PSO 18,177 SWEPCo 26,174 WPCo 1,736 Total Circuit Miles 131,147 Transmission and Distribution Utilities Segment Total Overhead Circuit Miles of Transmission and Distribution Lines OPCo 44,576 AEP Texas 46,492 Total Circuit Miles 91,068 AEP Transmission Holdco Segment The following table sets forth the total overhead circuit miles of transmission lines of certain wholly-owned and joint venture-owned entities: Total Overhead Circuit Miles of Transmission Lines ETT 1,884 IMTCo 1,115 OHTCo 1,215 OKTCo 1,061 WVTCo 344 Pioneer 43 Prairie Wind Transmission 216 Transource Missouri 167 Transource West Virginia 27 Total Circuit Miles 6,072 51 TITLE TO PROPERTY The AEP System’s generating facilities are generally located on lands owned in fee simple.

Added

Figures presented reflect only the portion owned by WPCo.

Removed

See the “Budgeted Capital Expenditures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2022 Annual Report for additional information.

Added

TRANSMISSION AND DISTRIBUTION FACILITIES The AEP System has significant investments in transmission and distribution lines across its Vertically Integrated Utilities, Transmission and Distribution Utilities and AEP Transmission Holdco Segments. See Item 1 for additional information relating to the total overhead circuit miles of transmission and distribution lines by operating company.

Removed

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

0 edited+2 added−2 removed1 unchanged

2022 filing

2023 filing

Removed

SWEPCo, through its ownership of DHLC, a wholly-owned lignite mining subsidiary of SWEPCo, is subject to the provisions of the Mine Act. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) requires companies that operate mines to include in their periodic reports filed with the SEC, certain mine safety information covered by the Mine Act.

Added

Prior to October 1, 2023, SWEPCo, through its ownership of DHLC, a wholly-owned lignite mining subsidiary of SWEPCo, was subject to the provisions of the Mine Act. Effective as of October 1, 2023, the U.S. Department of Labor’s Mine Safety and Health Administration put DHLC in Abandoned Mine Status.

Removed

Exhibit 95 “Mine Safety Disclosure Exhibit” contains the notices of violation and proposed assessments received by DHLC under the Mine Act for the quarter ended December 31, 2022. 53 PART II

Added

As a result of this designation, DHLC is no longer subject to the Mine Act or Section 1503 of The Dodd-Frank Wall Street Reform and Consumer Protection Act. 39 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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2022 filing

2023 filing

Biggest changeAs of December 31, 2022, AEP had 51,279 registered shareholders. The performance graph below compares the cumulative total return among AEP, the S&P 500 Index and the S&P Electric Utilities (SP833) Index over a five year period. The performance graph assumes an initial investment of $100 on December 31, 2017 and that all dividends were reinvested.

Biggest changeAs of December 31, 2023, AEP had 49,023 registered shareholders. The performance graph below compares the cumulative total return among AEP, the S&P 500 Index and the S&P Electric Utilities (SP833) Index over a five year period. The performance graph assumes an initial investment of $100 on December 31, 2018 and that all dividends were reinvested.

MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES AEP In addition to the AEP Common Stock Information section below, the remaining information required by this item is incorporated herein by reference to the material under the “Dividend Policy and Restrictions” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2022 Annual Report.

During the quarter ended December 31, 2022, neither AEP nor its publicly-traded subsidiaries purchased equity securities that are registered by AEP or its publicly-traded subsidiaries pursuant to Section 12 of the Exchange Act. AEP Texas, APCo, I&M, OPCo, PSO and SWEPCo The common stock of these companies is held solely by AEP.

During the quarter ended December 31, 2023, neither AEP nor its publicly-traded subsidiaries purchased equity securities that are registered by AEP or its publicly-traded subsidiaries pursuant to Section 12 of the Exchange Act. AEP Texas, APCo, I&M, OPCo, PSO and SWEPCo The common stock of these companies is held solely by AEP.

For more information see the “Dividend Restrictions” section of Note 14 - Financing Activities included in the 2022 Annual Report. AEPTCo AEP owns the entire interest in AEPTCo through its wholly-owned subsidiary AEP Transmission Holdco. AEP COMMON STOCK INFORMATION AEP common stock is principally traded using the trading symbol “AEP” on the NASDAQ Stock Market.

For more information see the “Dividend Restrictions” section of Note 14 - Financing Activities included in the 2023 Annual Report. AEPTCo AEP owns the entire interest in AEPTCo through its wholly-owned subsidiary AEP Transmission Holdco. AEP COMMON STOCK INFORMATION AEP common stock is principally traded using the trading symbol “AEP” on the NASDAQ Stock Market.

Source: S&P Dow Jones Indices LLC. Data as of December 31, 2022. Past performance is no guarantee of future results. Chart provided for illustrative purposes. 54

Source: S&P Dow Jones Indices LLC. Data as of December 31, 2023. Past performance is no guarantee of future results. Chart provided for illustrative purposes. 40

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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2022 filing

2023 filing

Biggest changeYear-to-year comparisons between 2021 and 2020 have been omitted from this Form 10-K but may be found in "Management's Discussion and Analysis of Financial Condition" in Part II, Item 7 of our Form 10-K for the fiscal year ended December 31, 2021, which specific discussion is incorporated herein by reference.

Biggest changeYear-to-year comparisons between 2022 and 2021 have been omitted from this Form 10-K but may be found in "Management's Discussion and Analysis of Financial Condition" in Part II, Item 7 of our Form 10-K for the fiscal year ended December 31, 2022, which specific discussion is incorporated herein by reference.

AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo Omitted pursuant to Instruction I(2)(a). Management’s narrative analysis of the results of operations and other information required by Instruction I(2)(a) is incorporated herein by reference to the material under Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2022 Annual Report.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS AEP The information required by this item is incorporated herein by reference to the material under Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2022 Annual Report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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2022 filing

2023 filing

Biggest changeITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo The information required by this item is incorporated herein by reference to the material under the “Quantitative and Qualitative Disclosures About Market Risk” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2022 Annual Report.

Top changes in American Electric Power's 2023 10-K

Item 1. Business

Item 1A. Risk Factors

Item 2. Properties

Item 4. Mine Safety Disclosures

Item 5. Market for Registrant's Common Equity

Item 7. Management's Discussion & Analysis

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Other AEP 10-K year-over-year comparisons