AEP TEXAS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31, 2020, 2019 and 2018 (in millions) Years Ended December 31, 2020 2019 2018 REVENUES Electric Transmission and Distribution $ 1,524.9  $ 1,545.9  $ 1,486.3  Sales to AEP Affiliates 90.8  160.5  105.2  Other Revenues 3.2  2.9  3.8  TOTAL REVENUES 1,618.9  1,709.3  1,595.3  EXPENSES Fuel and Other Consumables Used for Electric Generation 13.7  31.1  38.5  Other Operation 488.9  492.0  488.9  Maintenance 80.5  158.8  89.4  Asset Impairments and Other Related Charges —  32.5  —  Depreciation and Amortization 529.8  622.3  499.6  Taxes Other Than Income Taxes 136.4  140.6  132.6  TOTAL EXPENSES 1,249.3  1,477.3  1,249.0  OPERATING INCOME 369.6  232.0  346.3  Other Income (Expense): Interest Income 1.4  3.4  0.8  Allowance for Equity Funds Used During Construction 19.4  15.2  20.0  Non-Service Cost Components of Net Periodic Benefit Cost 11.2  11.3  12.3  Interest Expense (171.8) (137.2) (147.3) INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) 229.8  124.7  232.1  Income Tax Expense (Benefit) (11.2) (53.6) 20.8  NET INCOME $ 241.0  $ 178.3  $ 211.3  The common stock of AEP Texas is wholly-owned by Parent. See Notes to Financial Statements of Registrants beginning on page 229. 140