AEP Texas Inc.

For the period ended Dec 31, 2025. Filed Feb 12, 2026.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2025 · Filed Feb 12, 2026

AEP$126.53-0.2%Stored close · as of Nov 6, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Contents

Financial Statements

STATEMENTS OF INCOME

	Years Ended December 31,
	2025	2024	2023
REVENUES
Electric Generation, Transmission and Distribution	$2,002	$1,820	$1,968
Sales to AEP Affiliates	9	7	1
Other Revenues	11	19	8
TOTAL REVENUES	2,022	1,846	1,977
EXPENSES
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	752	743	955
Other Operation	501	416	356
Maintenance	129	113	112
Depreciation and Amortization	260	272	256
Taxes Other Than Income Taxes	79	77	64
TOTAL EXPENSES	1,721	1,621	1,743
OPERATING INCOME	301	225	234
Other Income (Expense):
Interest Income	2	2	2
Allowance for Equity Funds Used During Construction	11	7	8
Non-Service Cost Components of Net Periodic Benefit Cost	8	11	14
Interest Expense	(140)	(96)	(103)
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)	182	149	155
Income Tax Expense (Benefit)	(70)	(100)	(54)
NET INCOME	$252	$249	$209
The common stock of PSO is wholly-owned by Parent.
See Notes to Financial Statements of Registrants beginning on page 182.

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Years Ended December 31,
	2025	2024	2023
Net Income	$252	$249	$209
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Cash Flow Hedges, Net of Tax of $0, $1 and $0 in 2025, 2024 and 2023, Respectively	(1)	4	(2)
TOTAL COMPREHENSIVE INCOME	$251	$253	$207
See Notes to Financial Statements of Registrants beginning on page 182.

STATEMENTS OF CHANGES IN COMMON SHAREHOLDER’S EQUITY

CommonStock · Paid-inCapital · Retained Earnings · AccumulatedOtherComprehensiveIncome (Loss) · Total
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2022	$157		$1,043		$1,218	$1	$2,419
Capital Contribution from Parent		1				1
Return of Capital to Parent		(4)				(4)
Common Stock Dividends				(52)		(52)
Net Income				209		209
Other Comprehensive Loss					(2)	(2)
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2023	157		1,040		1,375	(1)	2,571
Capital Contribution from Parent		2				2
Common Stock Dividends				(140)		(140)
Net Income				249		249
Other Comprehensive Income					4	4
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2024	157		1,042		1,484	3	2,686
Capital Contribution from Parent		676				676
Net Income				252		252
Other Comprehensive Loss					(1)	(1)
TOTAL COMMON SHAREHOLDER’S EQUITY – DECEMBER 31, 2025	$157		$1,718		$1,736	$2	$3,613
See Notes to Financial Statements of Registrants beginning on page 182.

BALANCE SHEETS

ASSETS

	December 31,
	2025	2024
CURRENT ASSETS
Cash and Cash Equivalents	$2	$2
Advances to Affiliates	—	232
Accounts Receivable:
Customers	109	75
Affiliated Companies	45	33
Miscellaneous	4	—
Total Accounts Receivable	158	108
Fuel	3	17
Materials and Supplies	119	109
Risk Management Assets	42	21
Accrued Tax Benefits	8	36
Regulatory Asset for Under-Recovered Fuel Costs	37	65
Prepayments and Other Current Assets	14	18
TOTAL CURRENT ASSETS	383	608
PROPERTY, PLANT AND EQUIPMENT
Electric:
Generation	4,365	2,772
Transmission	1,433	1,345
Distribution	3,987	3,699
Other Property, Plant and Equipment	1,292	550
Construction Work in Progress	635	379
Total Property, Plant and Equipment	11,712	8,745
Accumulated Depreciation and Amortization	2,748	2,213
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET	8,964	6,532
OTHER NONCURRENT ASSETS
Regulatory Assets	637	528
Employee Benefits and Pension Assets	95	74
Operating Lease Assets	126	106
Deferred Charges and Other Noncurrent Assets	13	62
TOTAL OTHER NONCURRENT ASSETS	871	770
TOTAL ASSETS	$10,218	$7,910
See Notes to Financial Statements of Registrants beginning on page 182.

BALANCE SHEETS

	December 31,
	2025	2024
(in millions)
CURRENT LIABILITIES
Advances from Affiliates	$171	$—
Accounts Payable:
General	339	201
Affiliated Companies	87	59
Long-term Debt Due Within One Year – Nonaffiliated	51	126
Risk Management Liabilities	27	6
Customer Deposits	115	73
Accrued Taxes	37	33
Accrued Interest	67	33
Obligations Under Operating Leases	11	10
Other Current Liabilities	104	78
TOTAL CURRENT LIABILITIES	1,009	619
NONCURRENT LIABILITIES
Long-term Debt – Nonaffiliated	3,475	2,730
Deferred Income Taxes	1,113	931
Regulatory Liabilities and Deferred Investment Tax Credits	717	690
Asset Retirement Obligations	136	119
Obligations Under Operating Leases	122	102
Deferred Credits and Other Noncurrent Liabilities	33	33
TOTAL NONCURRENT LIABILITIES	5,596	4,605
TOTAL LIABILITIES	6,605	5,224
Rate Matters (Note 4)
Commitments and Contingencies (Note 6)
COMMON SHAREHOLDER’S EQUITY
Common Stock – Par Value – $15 Per Share:
Authorized – 11,000,000 Shares
Issued – 10,482,000 Shares
Outstanding – 9,013,000 Shares	157	157
Paid-in Capital	1,718	1,042
Retained Earnings	1,736	1,484
Accumulated Other Comprehensive Income (Loss)	2	3
TOTAL COMMON SHAREHOLDER’S EQUITY	3,613	2,686
TOTAL LIABILITIES AND COMMON SHAREHOLDER’S EQUITY	$10,218	$7,910
See Notes to Financial Statements of Registrants beginning on page 182.

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2025	2024	2023
OPERATING ACTIVITIES
Net Income	$252	$249	$209
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
Depreciation and Amortization	260	272	256
Deferred Income Taxes	150	21	8
Allowance for Equity Funds Used During Construction	(11)	(7)	(8)
Mark-to-Market of Risk Management Contracts	2	(27)	33
Deferred Fuel Over/Under-Recovery, Net	28	54	313
Change in Other Regulatory Assets	(54)	—	(108)
Change in Other Noncurrent Assets	4	(45)	(71)
Change in Other Noncurrent Liabilities	3	7	8
Changes in Certain Components of Working Capital:
Accounts Receivable, Net	(50)	32	(16)
Fuel, Materials and Supplies	8	15	(17)
Accounts Payable	68	18	(58)
Accrued Taxes, Net	31	(2)	(13)
Other Current Assets	2	(4)	10
Other Current Liabilities	52	(34)	45
Net Cash Flows from Operating Activities	745	549	591
INVESTING ACTIVITIES
Construction Expenditures	(824)	(598)	(562)
Change in Advances to Affiliates, Net	232	(232)	—
Acquisitions of Generation Facilities	(1,676)	—	(146)
Other Investing Activities	10	5	15
Net Cash Flows Used for Investing Activities	(2,258)	(825)	(693)
FINANCING ACTIVITIES
Capital Contribution from Parent	676	2	1
Return of Capital to Parent	—	—	(4)
Issuance of Long-term Debt – Nonaffiliated	793	596	470
Change in Advances from Affiliates, Net	171	(54)	(310)
Retirement of Long-term Debt – Nonaffiliated	(126)	(126)	(1)
Principal Payments for Finance Lease Obligations	(3)	(3)	(3)
Dividends Paid on Common Stock	—	(140)	(52)
Other Financing Activities	2	—	—
Net Cash Flows from Financing Activities	1,513	275	101
Net Decrease in Cash and Cash Equivalents	—	(1)	(1)
Cash and Cash Equivalents at Beginning of Period	2	3	4
Cash and Cash Equivalents at End of Period	$2	$2	$3
SUPPLEMENTARY INFORMATION
Cash Paid for Interest, Net of Capitalized Amounts	$106	$102	$87
Noncash Acquisitions Under Finance Leases	2	2	2
Construction Expenditures Included in Current Liabilities as of December 31,	185	88	73
See Notes to Financial Statements of Registrants beginning on page 182.

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.