353 PSO Years Ended December 31, 2020 2019 2018 (in millions) Net Income $ 123.0  $ 137.6  $ 83.2  Income Tax Expense 5.2  7.5  5.0  Pretax Income $ 128.2  $ 145.1  $ 88.2  Income Taxes on Pretax Income at Statutory Rate (21%) $ 26.9  $ 30.5  $ 18.5  Increase (Decrease) in Income Taxes Resulting from the Following Items: Depreciation 1.1  0.6  0.7  Investment Tax Credit Amortization (2.1) (0.5) (1.7) State and Local Income Taxes, Net 6.5  6.3  4.8  Parent Company Loss Benefit (0.2) (2.1) (1.4) Tax Reform Excess ADIT Reversal (25.5) (24.5) (15.5) Other (1.5) (2.8) (0.4) Income Tax Expense $ 5.2  $ 7.5  $ 5.0  Effective Income Tax Rate 4.1  % 5.2  % 5.7  % SWEPCo Years Ended December 31, 2020 2019 2018 (in millions) Net Income $ 183.7  $ 162.2  $ 152.2  Less: Equity Earnings – Dolet Hills (2.9) (3.0) (2.7) Income Tax Expense (Benefit) 9.4  (4.7) 20.4  Pretax Income $ 190.2  $ 154.5  $ 169.9  Income Taxes on Pretax Income at Statutory Rate (21%) $ 39.9  $ 32.4  $ 35.7  Increase (Decrease) in Income Taxes Resulting from the Following Items: Depreciation 1.9  1.9  1.9  Depletion (3.4) (3.4) (3.4) State and Local Income Taxes, Net 2.7  (1.3) 3.2  AFUDC (1.5) (1.4) (1.3) Parent Company Loss Benefit (5.6) (1.6) (0.6) Tax Reform Excess ADIT Reversal (21.9) (29.9) (16.0) Other (2.7) (1.4) 0.9  Income Tax Expense (Benefit) $ 9.4  $ (4.7) $ 20.4  Effective Income Tax Rate 4.9  % (3.0) % 12.0  %