Lucasys to Deliver Tax Depreciation and Deferred Tax for American Electric Power
This week, we are proud to share that American Electric Power (AEP), one of the largest regulated electric utilities in the United States, has selected Lucasys’ Tax Depreciation and Deferred Tax products to manage their tax fixed assets. This expands AEP’s existing use of the Lucasys Tax Suite to four licensed applications.
AEP's selection of Lucasys reflects the same calculus that more and more utility tax leaders are making: cloud-native architecture, transparent calculations, and intuitive workflows are now table stakes.
Why This Matters: The Stakes for Investor-Owned Utilities
AEP's decision arrives at a moment of historic capital investment across the utility industry. The Edison Electric Institute (EEI) projects that investor-owned electric companies will invest nearly $208 billion in 2025 alone, with more than $1.1 trillion expected between 2025 and 2029. As that capital flows into transmission lines, substations, generation, and grid modernization, the tax function carries more weight than ever. Every dollar of new investment creates downstream tax implications across tax depreciation, deferred tax, tax provision, and the tax basis balance sheet.
Tax teams at utilities like AEP are seeking deeper visibility into every calculation and stronger support for rate cases and audits, all while managing a fixed asset base that drives billions of dollars in regulatory and cash flow decisions every year. The right technology is no longer a convenience. It is foundational to how the modern utility tax function operates.
What AEP Chose
The Lucasys Tax Suite is an integrated platform of six applications designed specifically for the unique requirements of rate-regulated utilities and other asset-intensive industries. These priorities consistently rise to the top for utility tax leaders making this kind of decision:
• Transparency into every calculation. Modern tax software should not be a black box. Lucasys traces every number down to the decimal, giving tax teams the audit-readiness and regulator-readiness they need.
• Automation that reduces manual reconciliation. Legacy systems force teams to bridge gaps with spreadsheets and workarounds. Lucasys connects directly to source systems and eliminates the reconciliation headaches that consume tax close cycles.
• Flexibility to evolve as the business changes. Utilities are not static. Cloud-native architecture means companies can add applications, build new integrations, and adapt to regulatory shifts without rebuilding from scratch.
• A reliable and trustworthy partner. The team behind the software at Lucasys has proven their ability to take care of their customers and help companies achieve their tax technology goals.
A Broader Shift in the Utility Tax Market
AEP joins a growing list of utility and energy companies that have replaced legacy tax software with Lucasys, and the pace of that shift continues to accelerate. The conversation in utility tax has fundamentally changed, and so have the expectations.
“AEP was one of our earliest customers, and seeing them expand their use of the Lucasys platform is a moment of real pride for our team. When we founded Lucasys, the thesis was simple: tax and finance professionals in asset-intensive industries deserve better tools. We are honored to be the platform AEP has chosen to manage their tax fixed assets.
-Vadim Lantukh, Co-Founder and CEO, Lucasys
What's Next
Lucasys continues to bring additional products and innovations to market. For utility tax leaders watching this announcement and asking what it means for their own organization, the answer is straightforward: the legacy provider monopoly is over, and modern alternatives are not just available, they are being adopted by the largest names in the industry.
How Lucasys Can Help
Lucasys delivers software and technology-enabled services to empower finance, accounting, and tax professionals in asset-intensive industries to optimize the financial performance of their fixed assets and proactively meet changing regulatory and compliance requirements. With a core focus on rate-regulated utilities, Lucasys provides the industry and domain expertise utilities require to meet their business objectives. To learn more about Lucasys, visit https://www.lucasys.com or follow us on LinkedIn.
Ready to see how Lucasys can help your tax team navigate the new era of utility investment? Visit lucasys.com/solutions to learn more or request a demo today.