v3.26.1
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
The disclosures in this note apply to all Registrants unless indicated otherwise.

AEP’s Reportable Segments

AEP’s primary business is the generation, transmission and distribution of electricity.  Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight applicable to each public utility subsidiary.  Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

The CODM of AEP is the President and CEO of AEP, who makes operating decisions, allocates resources to and assesses performance based on these reportable segments. The CODM uses earnings (loss) attributable to AEP common shareholders (presented on a GAAP basis) as a measure of segment profit or loss in making these decisions. Earnings (loss) attributable to AEP common shareholders includes intercompany revenues and expenses that are eliminated on the consolidated financial statements.

AEP’s reportable segments and their related business activities are outlined below:

Vertically Integrated Utilities

•Generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Transmission and Distribution Utilities

•Transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEP Texas and OPCo.
•OPCo purchases energy and capacity to serve standard service offer customers and provides transmission and distribution services for all connected load.

AEP Transmission Holdco

•Development, construction and operation of transmission facilities through investments in AEPTCo. These investments have FERC-approved ROEs.
•Development, construction and operation of transmission facilities through investments in AEP’s transmission-only joint ventures. These investments have PUCT-approved or FERC-approved ROEs.

Generation & Marketing

•Marketing, risk management and retail activities in ERCOT, MISO, PJM and SPP.
•Competitive generation in PJM.

The remainder of AEP’s activities are presented as Corporate and Other. While not considered a reportable segment, Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries, Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense, income tax expense and other nonallocated costs.
The tables below represent AEP’s reportable segment income statement information for the three and six months ended June 30, 2026 and 2025 and reportable segment balance sheet information as of June 30, 2026 and December 31, 2025. The significant expenses disclosed below align with the segment-level information that is regularly provided to the CODM.

Three Months Ended June 30, 2026
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$3,050 $1,568 $129 $693 $5,440 $5 $— $5,445 
Other Operating Segments70 15 481 16 582 25 (607)(b)— 
Total Revenues3,120 1,583 610 709 6,022 30 (607)5,445 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation900 187 — 588 1,675 — (72)1,603 
Other Operation and Maintenance1,055 655 57 6 1,773 27 (542)1,258 
Depreciation and Amortization569 210 130 5 914 (4)— 910 
Taxes Other Than Income Taxes143 190 87 — 420 — 7 427 
Allowance for Equity Funds Used During Construction21 28 26 — 75 — — 75 
Interest Expense264 117 68 2 451 170 (36)585 
Income Tax Expense (Benefit)(64)37 63 29 65 (13)— 52 
Equity Earnings of Unconsolidated Subsidiaries1 — 24 — 25 4 — 29 
Other Segment Items (c)(9)(7)30 (18)(4)(31)36 1 
Earnings (Loss) Attributable to AEP Common Shareholders$284 $222 $225 $97 $828 $(115)$— $713 
Gross Property Additions$1,465 $1,004 $471 $74 $3,014 $136 $(24)$3,126 

Three Months Ended June 30, 2025
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$2,934 $1,443 $155 $552 $5,084 $3 $— $5,087 
Other Operating Segments81 6 602 14 703 27 (730)(b)— 
Total Revenues3,015 1,449 757 566 5,787 30 (730)5,087 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation921 203 — 493 1,617 — (76)1,541 
Other Operation and Maintenance981 541 46 — 1,568 20 (660)928 
Depreciation and Amortization532 201 121 5 859 (5)— 854 
Taxes Other Than Income Taxes122 159 78 — 359 — 6 365 
Allowance for Equity Funds Used During Construction16 19 22 — 57 — — 57 
Interest Expense202 99 59 2 362 151 (24)489 
Income Tax Expense (Benefit)(137)51 (139)18 (207)(44)— (251)
Equity Earnings (Loss) of Unconsolidated Subsidiaries1 — 22 — 23 (2)— 21 
Other Segment Items (c)(22)(10)58 (14)12 (23)24 13 
Earnings (Loss) Attributable to AEP Common Shareholders$433 $224 $578 $62 $1,297 $(71)$— $1,226 
Gross Property Additions$2,232 $664 $384 $3 $3,283 $6 $(10)$3,279 
Six Months Ended June 30, 2026
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$6,415 $3,162 $256 $1,624 $11,457 $8 $— $11,465 
Other Operating Segments145 30 952 37 1,164 53 (1,217)(b)— 
Total Revenues6,560 3,192 1,208 1,661 12,621 61 (1,217)11,465 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation1,975 458 — 1,442 3,875 — (154)3,721 
Other Operation and Maintenance2,072 1,235 110 15 3,432 65 (1,078)2,419 
Asset Impairments and Other Related Charges31 — — — 31 — — 31 
Depreciation and Amortization1,128 427 261 10 1,826 (9)— 1,817 
Taxes Other Than Income Taxes287 390 177 1 855 — 15 870 
Allowance for Equity Funds Used During Construction44 53 48 — 145 — — 145 
Interest Expense509 222 137 3 871 336 (70)1,137 
Income Tax Expense (Benefit)(112)77 130 51 146 (50)— 96 
Equity Earnings of Unconsolidated Subsidiaries1 — 49 — 50 4 — 54 
Other Segment Items (c)(31)(23)56 (33)(31)(53)70 (14)
Earnings (Loss) Attributable to AEP Common Shareholders$746 $459 $434 $172 $1,811 $(224)$— $1,587 
Gross Property Additions$3,608 $2,065 $904 $79 $6,656 $283 $(18)$6,921 

Six Months Ended June 30, 2025
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$6,020 $2,958 $271 $1,282 $10,531 $19 $— $10,550 
Other Operating Segments133 18 1,028 31 1,210 55 (1,265)(b)— 
Total Revenues6,153 2,976 1,299 1,313 11,741 74 (1,265)10,550 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation1,996 466 — 1,076 3,538 — (144)3,394 
Other Operation and Maintenance1,865 1,118 83 30 3,096 36 (1,133)1,999 
Depreciation and Amortization1,047 404 237 9 1,697 (10)— 1,687 
Taxes Other Than Income Taxes256 364 153 1 774 1 12 787 
Allowance for Equity Funds Used During Construction32 38 44 — 114 — — 114 
Interest Expense402 211 116 4 733 298 (47)984 
Income Tax Expense (Benefit)(92)85 (72)54 (25)(101)— (126)
Equity Earnings of Unconsolidated Subsidiaries1 1 46 — 48 11 — 59 
Other Segment Items (c)(45)(22)59 (25)(33)(42)47 (28)
Earnings (Loss) Attributable to AEP Common Shareholders$757 $389 $813 $164 $2,123 $(97)$— $2,026 
Gross Property Additions$3,153 $1,368 $814 $7 $5,342 $36 $1 $5,379 
June 30, 2026
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Total Assets$65,606 $30,878 $20,832 $2,938 $120,254 $7,092 (d)$(5,776)(e)$121,570 
Investments in Equity Method Investees$9 $2 $1,091 $— $1,102 $230 $— $1,332 

December 31, 2025
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Total Assets$61,778 $29,272 $19,719 $2,003 $112,772 $6,733 (d)$(5,045)(e)$114,460 
Investments in Equity Method Investees$9 $4 $1,068 $— $1,081 $171 $— $1,252 
(a)Corporate and Other primarily includes the purchasing of receivables from certain AEP utility subsidiaries. This segment also includes Parent’s guarantee revenue received from affiliates, investment income, interest income and interest expense, income tax expense and other nonallocated costs.
(b)Represents inter-segment revenues.
(c)Other segment items included in segment earnings (loss) attributable to AEP common shareholders primarily includes Interest and Dividend Income, Non-Service Cost Components of Net Periodic Benefit Cost and Net Income (Loss) Attributable to Noncontrolling Interests.
(d)Includes elimination of AEP Parent’s investments in wholly-owned subsidiary companies.
(e)Reconciling Adjustments for Total Assets primarily include elimination of intercompany advances to affiliates and intercompany accounts receivable.

Registrant Subsidiaries’ Reportable Segments (Applies to all Registrant Subsidiaries except AEPTCo)

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business for APCo, I&M, PSO and SWEPCo, and an integrated electricity transmission and distribution business for AEP Texas and OPCo.  Other activities are insignificant.  The Registrant Subsidiaries’ operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results. The CODM of each Registrant Subsidiary is the AEP President and CEO, who makes operating decisions, allocates resources to and assesses performance based on these reportable segments. The CODM uses earnings (loss) attributable to common shareholders and net income (loss) that is reported on the Registrant Subsidiaries’ statements of income as a measure of segment profit or loss in making these decisions. Earnings (loss) attributable to common shareholders and net income (loss) include intercompany revenues and expenses that are eliminated on the consolidated financial statements. The expenses disclosed on the Registrant Subsidiaries’ statements of income align with the segment-level significant expenses that are regularly provided to the CODM. Total Assets is reported on the consolidated financial statements. Gross Property Additions for the Registrant Subsidiaries is represented by the sum of Construction Expenditures and Acquisition of Assets on the consolidated financial statements. See Registrant Subsidiaries statements of income, balance sheets and cash flows for details.

AEPTCo’s Reportable Segments

AEPTCo Parent is the holding company of seven FERC-regulated transmission-only electric utilities. The seven State Transcos have been identified as operating segments of AEPTCo under the accounting guidance for “Segment Reporting.” The State Transcos’ business consists of developing, constructing and operating transmission facilities at the request of the RTOs in which they operate and in replacing and upgrading facilities, assets and components of the existing AEP transmission system as needed to maintain reliability standards and provide service to AEP’s wholesale and retail customers. The State Transcos are regulated for ratemaking purposes exclusively by the FERC and earn revenues through tariff rates charged for the use of their electric transmission systems.

The CODM of AEPTCo is the AEP President and CEO, who makes operating decisions, allocates resources to and assesses performance based on these operating segments. The CODM uses earnings (loss) attributable to AEPTCo common shareholders (presented on a GAAP basis) as a measure of segment profit or loss in making these decisions. Earnings (loss) attributable to AEPTCo common shareholders includes intercompany revenues and expenses that are eliminated on the consolidated financial statements. The State Transcos operating segments all have similar economic characteristics and meet all of the criteria under the accounting guidance for “Segment Reporting” to be aggregated into one reportable segment. As a result, AEPTCo has one reportable segment. The remainder of AEPTCo’s activity is presented in AEPTCo Parent. While not considered a reportable segment, AEPTCo Parent represents the activity of the holding company which primarily relates to debt financing activity and general corporate activities.
The tables below present AEPTCo’s reportable segment income statement information for the three and six months ended June 30, 2026 and 2025 and reportable segment balance sheet information as of June 30, 2026 and December 31, 2025. The significant expenses disclosed below align with the segment-level information that is regularly provided to the CODM.

Three Months Ended June 30, 2026
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$107 $— $— $107 
Sales to AEP Affiliates474 — — 474 
Other Revenues7 — — 7 
Total Revenues588 — — 588 
Other Operation and Maintenance53 — — 53 
Depreciation and Amortization 128 — — 128 
Taxes Other Than Income Taxes86 — — 86 
Interest Income— 73 (71)(a)2 
Allowance for Equity Funds Used During Construction 26 — — 26 
Interest Expense 63 72 (71)(a)64 
Income Tax Expense62 — — 62 
Other Segment Items (b)— 31 — 31 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$222 $(30)(c)$— $192 
Gross Property Additions$462 $— $— $462 

Three Months Ended June 30, 2025
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$145 $— $— $145 
Sales to AEP Affiliates597 — — 597 
Total Revenues742 — — 742 
Other Operation and Maintenance42 — — 42 
Depreciation and Amortization 119 — — 119 
Taxes Other Than Income Taxes76 — — 76 
Interest Income1 84 (83)(a)2 
Allowance for Equity Funds Used During Construction 21 — — 21 
Interest Expense 77 63 (83)(a)57 
Income Tax Expense (Benefit)(156)10 — (146)
Other Segment Items (b)— 61 — 61 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$606 $(50)(c)$— $556 
Gross Property Additions$365 $— $— $365 
Six Months Ended June 30, 2026
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$217 $— $— $217 
Sales to AEP Affiliates942 — — 942 
Other Revenues7 — — 7 
Total Revenues1,166 — — 1,166 
Other Operation and Maintenance104 — — 104 
Depreciation and Amortization 256 — — 256 
Taxes Other Than Income Taxes174 — — 174 
Interest Income1 146 (143)(a)4 
Allowance for Equity Funds Used During Construction 48 — — 48 
Interest Expense 128 144 (143)(a)129 
Income Tax Expense122 — — 122 
Other Segment Items (b)— 58 — 58 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$431 $(56)(c)$— $375 
Gross Property Additions$865 $— $— $865 

Six Months Ended June 30, 2025
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$249 $— $— $249 
Sales to AEP Affiliates1,020 — — 1,020 
Total Revenues1,269 — — 1,269 
Other Operation and Maintenance76 — — 76 
Depreciation and Amortization 233 — — 233 
Taxes Other Than Income Taxes150 — — 150 
Interest Income1 173 (172)(a)2 
Allowance for Equity Funds Used During Construction 43 — — 43 
Interest Expense 161 123 (172)(a)112 
Income Tax Expense (Benefit)(95)10 — (85)
Other Segment Items (b)— 61 — 61 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$788 $(21)(c)$— $767 
Gross Property Additions$787 $— $— $787 

June 30, 2026
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Total Assets $19,024 $7,252 (d)$(7,200)(e)$19,076 

December 31, 2025
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Total Assets $17,983 $6,766 (d)$(6,750)(e)$17,999 
(a)Elimination of intercompany interest income/interest expense on affiliated debt arrangement.
(b)Other segment items included in segment earnings (loss) attributable to AEPTCo common shareholders primarily includes Net Income (Loss) Attributable to Noncontrolling Interests.
(c)Includes elimination of AEPTCo Parent’s equity earnings in the State Transcos.
(d)Primarily relates to Notes Receivable from the State Transcos.
(e)Primarily relates to elimination of Notes Receivable from the State Transcos.