Depreciation, Depletion and Amortization The Registrants provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide total regulated annual composite depreciation rates and depreciable lives for the Registrants: 402 I&M APCo AEP Texas 2020 2019 2018 Functional Class of Property Annual Composite Depreciation Rate Ranges Depreciable Life Ranges Annual Composite Depreciation Rate Ranges Depreciable Life Ranges Annual Composite Depreciation Rate Ranges Depreciable Life Ranges (in years) (in years) (in years) Generation 2.7% - 6.3% 20 - 132 2.5% - 5.5% 20 - 132 2.4% - 4.0% 20 - 132 Transmission 2.0% - 2.6% 15 - 75 1.8% - 2.6% 15 - 81 1.6% - 2.7% 15 - 81 Distribution 2.7% - 3.7% 7 - 78 2.7% - 3.7% 7 - 78 2.7% - 3.6% 7 - 78 Other 2.8% - 11.3% 5 - 75 2.6% - 9.5% 5 - 75 2.3% - 9.8% 5 - 75 2020 2019 2018 Functional Class of Property Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges (in years) (in years) (in years) Transmission 2.0% 50 - 75 1.8% 45 - 81 1.7% 45 - 81 Distribution 3.1% 7 - 70 3.5% 7 - 70 3.6% 7 - 70 Other 6.1% 5 - 50 6.3% 5 - 50 6.0% 5 - 50 2020 2019 2018 Functional Class of Property Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges (in years) (in years) (in years) Transmission 2.4% 24 - 75 2.0% 24 - 75 1.9% 20 - 75 Other 6.3% 5 - 64 5.8% 5 - 64 5.6% 5 - 64 2020 2019 2018 Functional Class of Property Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges (in years) (in years) (in years) Generation 3.3% 35 - 118 3.2% 35 - 118 3.1% 35 - 112 Transmission 2.2% 15 - 75 1.8% 15 - 71 1.6% 15 - 68 Distribution 3.7% 12 - 57 3.7% 12 - 57 3.6% 10 - 57 Other 7.8% 5 - 55 7.2% 5 - 55 7.4% 5 - 55 2020 2019 2018 Functional Class of Property Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges (in years) (in years) (in years) Generation 4.6% 20 - 132 4.0% 20 - 132 3.4% 20 - 132 Transmission 2.3% 45 - 70 1.9% 50 - 73 1.8% 50 - 73 Distribution 3.4% 14 - 71 3.4% 9 - 75 3.1% 9 - 75 Other 10.2% 5 - 51 9.4% 5 - 50 8.9% 5 - 50 2020 2019 2018 Functional Class of Property Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges Annual Composite Depreciation Rate Depreciable Life Ranges (in years) (in years) (in years) Transmission 2.3% 39 - 60 2.3% 39 - 60 2.3% 39 - 60 Distribution 3.1% 14 - 65 3.1% 14 - 65 3.0% 14 - 65 Other 5.0% 5 - 50 4.9% 5 - 50 6.3% 5 - 50 OPCo AEPTCo AEP