REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2026

Revenue from Contract with Customer [Abstract]

The disclosures in this note apply to all Registrants, unless indicated otherwise.

Disaggregated Revenues from Contracts with Customers

The tables below represent AEP’s reportable segment and Registrant Subsidiary revenues from contracts with customers, net of respective provisions for refund, by type of revenue:


	Three Months Ended June 30, 2026
	VIU (a)		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	1,072	$	662	$	—	$	—	$	—	$	—	$	1,734
Commercial Revenues	852		473		—		—		—		—		1,325
Industrial Revenues (b)	702		145		—		—		—		—		847
Other Retail Revenues	60		14		—		—		—		—		74
Total Retail Revenues	2,686		1,294		—		—		—		—		3,980

Wholesale and Competitive Retail Revenues:
Generation Revenues	236		—		—		47		—		—		283
Transmission Revenues (c)	153		223		599		—		—		(538)		437

Retail, Trading and Marketing Revenues (d)	—		—		—		603		—		(16)		587
Total Wholesale and Competitive Retail Revenues	389		223		599		650		—		(554)		1,307

Other Revenues from Contracts with Customers (e)	77		53		18		48		28		(50)		174

Total Revenues from Contracts with Customers	3,152		1,570		617		698		28		(604)		5,461

Other Revenues:
Alternative Revenue Programs (f)	(10)		9		(7)		—		—		—		(8)
Other Revenues (b) (g)	(22)		4		—		11		2		(3)		(8)
Total Other Revenues	(32)		13		(7)		11		2		(3)		(16)

Total Revenues	$	3,120	$	1,583	$	610	$	709	$	30	$	(607)	$	5,445

(a)Beginning in the first quarter of 2026, PSO and SWEPCo incorporated fuel‑related amounts into unbilled revenues to reflect consideration earned but not yet invoiced as of the balance sheet date. The impact of this change did not have a material impact on the financial statements or related disclosures.

(b)Amounts include immaterial affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $475 million. The affiliated revenues for Vertically Integrated Utilities were $63 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $16 million. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $27 million. The remaining affiliated amounts were immaterial.

(f)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues. Amounts include immaterial affiliated and nonaffiliated revenues.

(g)Generation & Marketing includes economic hedge activity.


	Three Months Ended June 30, 2025
	VIU		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	1,030	$	612	$	—	$	—	$	—	$	—	$	1,642
Commercial Revenues	750		420		—		—		—		—		1,170
Industrial Revenues (a)	704		145		—		—		—		—		849
Other Retail Revenues	61		15		—		—		—		—		76
Total Retail Revenues	2,545		1,192		—		—		—		—		3,737

Wholesale and Competitive Retail Revenues:
Generation Revenues	237		—		—		38		—		—		275
Transmission Revenues (b)	157		197		699		—		—		(622)		431

Retail, Trading and Marketing Revenues (c)	—		—		—		538		—		(16)		522
Total Wholesale and Competitive Retail Revenues	394		197		699		576		—		(638)		1,228

Other Revenues from Contracts with Customers (d)	49		46		9		3		27		(44)		90

Total Revenues from Contracts with Customers	2,988		1,435		708		579		27		(682)		5,055

Other Revenues:
Alternative Revenue Programs (e)	15		12		49		—		—		(47)		29
Other Revenues (a) (f)	12		2		—		(13)		3		(1)		3
Total Other Revenues	27		14		49		(13)		3		(48)		32

Total Revenues	$	3,015	$	1,449	$	757	$	566	$	30	$	(730)	$	5,087

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $558 million. The affiliated revenues for Vertically Integrated Utilities were $65 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $16 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $26 million. The remaining affiliated amounts were immaterial.

(e)Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over/under collection of related revenues. Amounts include immaterial affiliated and nonaffiliated revenues.

(f)Generation & Marketing includes economic hedge activity.


	Three Months Ended June 30, 2026
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO (a)		SWEPCo (a)
	(in millions)
Retail Revenues:
Residential Revenues	$	190	$	—	$	348	$	191	$	472	$	224	$	208
Commercial Revenues	119		—		183		275		354		148		166
Industrial Revenues (b)	42		—		197		159		103		97		105
Other Retail Revenues	10		—		27		2		4		30		1
Total Retail Revenues	361		—		755		627		933		499		480

Wholesale Revenues:
Generation Revenues (c)	—		—		83		147		—		4		42
Transmission Revenues (d)	195		580		59		11		27		14		55
Total Wholesale Revenues	195		580		142		158		27		18		97

Other Revenues from Contracts with Customers (e)	17		17		16		46		35		6		16

Total Revenues from Contracts with Customers	573		597		913		831		995		523		593

Other Revenues:
Alternative Revenue Programs (f)	(2)		(9)		2		(6)		11		(2)		(5)
Other Revenues (b)	—		—		1		(25)		6		—		—
Total Other Revenues	(2)		(9)		3		(31)		17		(2)		(5)

Total Revenues	$	571	$	588	$	916	$	800	$	1,012	$	521	$	588

(b)Amounts include immaterial affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $42 million primarily related to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEPTCo, APCo and SWEPCo were $471 million, $32 million and $22 million, respectively. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $17 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.


	Three Months Ended June 30, 2025
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	180	$	—	$	366	$	190	$	432	$	191	$	191
Commercial Revenues	115		—		193		192		307		135		155
Industrial Revenues (a)	41		—		211		156		103		92		103
Other Retail Revenues	10		—		28		2		3		26		2
Total Retail Revenues	346		—		798		540		845		444		451

Wholesale Revenues:
Generation Revenues (b)	—		—		77		138		—		1		48
Transmission Revenues (c)	176		682		46		19		22		16		55
Total Wholesale Revenues	176		682		123		157		22		17		103

Other Revenues from Contracts with Customers (d)	8		9		19		27		38		6		7

Total Revenues from Contracts with Customers	530		691		940		724		905		467		561

Other Revenues:
Alternative Revenue Programs (e)	1		51		7		1		12		2		9
Other Revenues (a)	—		—		—		12		2		—		—
Total Other Revenues	1		51		7		13		14		2		9

Total Revenues	$	531	$	742	$	947	$	737	$	919	$	469	$	570

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $36 million primarily related to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEPTCo, APCo and SWEPCo were $555 million, $22 million and $21 million, respectively. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $18 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.


	Six Months Ended June 30, 2026
	VIU (a)		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	2,436	$	1,395	$	—	$	—	$	—	$	—	$	3,831
Commercial Revenues	1,651		882		—		—		—		—		2,533
Industrial Revenues (b)	1,351		273		—		—		—		—		1,624
Other Retail Revenues	119		29		—		—		—		—		148
Total Retail Revenues	5,557		2,579		—		—		—		—		8,136

Wholesale and Competitive Retail Revenues:
Generation Revenues	598		—		—		99		—		—		697
Transmission Revenues (c)	316		437		1,185		—		—		(1,057)		881

Retail, Trading and Marketing Revenues (d)	—		—		—		1,373		—		(37)		1,336
Total Wholesale and Competitive Retail Revenues	914		437		1,185		1,472		—		(1,094)		2,914

Other Revenues from Contracts with Customers (e)	125		155		23		79		57		(107)		332

Total Revenues from Contracts with Customers	6,596		3,171		1,208		1,551		57		(1,201)		11,382

Other Revenues:
Alternative Revenue Programs (f)	(7)		7		—		—		—		(11)		(11)
Other Revenues (b) (g)	(29)		14		—		110		4		(5)		94

Total Other Revenues	(36)		21		—		110		4		(16)		83

Total Revenues	$	6,560	$	3,192	$	1,208	$	1,661	$	61	$	(1,217)	$	11,465

(b)Amounts include immaterial affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $933 million. The affiliated revenues for Vertically Integrated Utilities were $118 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $37 million. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $56 million. The remaining affiliated amounts were immaterial.

(g)Generation & Marketing includes economic hedge activity.


	Six Months Ended June 30, 2025
	VIU		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	2,382	$	1,351	$	—	$	—	$	—	$	—	$	3,733
Commercial Revenues	1,415		802		—		—		—		—		2,217
Industrial Revenues (a)	1,322		268		—		—		—		—		1,590
Other Retail Revenues	115		30		—		—		—		—		145
Total Retail Revenues	5,234		2,451		—		—		—		—		7,685

Wholesale and Competitive Retail Revenues:
Generation Revenues	542		—		—		89		—		—		631
Transmission Revenues (b)	278		394		1,220		—		—		(1,072)		820

Retail, Trading and Marketing Revenues (c)	—		—		—		1,160		—		(32)		1,128
Total Wholesale and Competitive Retail Revenues	820		394		1,220		1,249		—		(1,104)		2,579

Other Revenues from Contracts with Customers (d)	101		108		18		4		70		(95)		206

Total Revenues from Contracts with Customers	6,155		2,953		1,238		1,253		70		(1,199)		10,470

Other Revenues:
Alternative Revenue Programs (e)	18		16		61		—		—		(62)		33
Other Revenues (a) (f)	(20)		7		—		60		4		(4)		47
Total Other Revenues	(2)		23		61		60		4		(66)		80

Total Revenues	$	6,153	$	2,976	$	1,299	$	1,313	$	74	$	(1,265)	$	10,550

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $969 million. The affiliated revenues for Vertically Integrated Utilities were $104 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $32 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $55 million. The remaining affiliated amounts were immaterial.

(f)Generation & Marketing includes economic hedge activity.


	Six Months Ended June 30, 2026
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO (a)		SWEPCo (a)
	(in millions)
Retail Revenues:
Residential Revenues	$	348	$	—	$	937	$	434	$	1,047	$	410	$	406
Commercial Revenues	233		—		376		526		649		270		324
Industrial Revenues (b)	79		—		383		305		194		186		197
Other Retail Revenues	21		—		53		3		8		54		6
Total Retail Revenues	681		—		1,749		1,268		1,898		920		933

Wholesale Revenues:
Generation Revenues (c)	—		—		177		404		—		5		94
Transmission Revenues (d)	381		1,144		120		22		55		28		113
Total Wholesale Revenues	381		1,144		297		426		55		33		207

Other Revenues from Contracts with Customers (e)	37		23		33		74		117		9		24

Total Revenues from Contracts with Customers	1,099		1,167		2,079		1,768		2,070		962		1,164

Other Revenues:
Alternative Revenue Program (f)	(4)		(1)		3		(4)		11		(2)		(5)
Other Revenues (b)	—		—		1		(31)		16		—		—
Total Other Revenues	(4)		(1)		4		(35)		27		(2)		(5)

Total Revenues	$	1,095	$	1,166	$	2,083	$	1,733	$	2,097	$	960	$	1,159

(b)Amounts include immaterial affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $97 million primarily related to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEPTCo, APCo and SWEPCo were $925 million, $65 million and $42 million, respectively. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $34 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.


	Six Months Ended June 30, 2025
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	352	$	—	$	972	$	422	$	999	$	366	$	384
Commercial Revenues	234		—		388		345		569		237		296
Industrial Revenues (a)	81		—		402		290		187		162		193
Other Retail Revenues	21		—		56		3		8		46		5
Total Retail Revenues	688		—		1,818		1,060		1,763		811		878

Wholesale Revenues:
Generation Revenues (b)	—		—		167		333		—		5		104
Transmission Revenues (c)	349		1,188		88		29		46		30		94
Total Wholesale Revenues	349		1,188		255		362		46		35		198

Other Revenues from Contracts with Customers (d)	18		18		33		57		90		15		16

Total Revenues from Contracts with Customers	1,055		1,206		2,106		1,479		1,899		861		1,092

Other Revenues:
Alternative Revenue Programs (e)	(1)		63		14		1		17		2		9
Other Revenues (a)	—		—		—		(20)		7		—		—
Total Other Revenues	(1)		63		14		(19)		24		2		9

Total Revenues	$	1,054	$	1,269	$	2,120	$	1,460	$	1,923	$	863	$	1,101

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $81 million primarily related to the PPA with KGPCo. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEPTCo, APCo and SWEPCo were $962 million, $41 million and $31 million, respectively. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $36 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.

Fixed Performance Obligations (Applies to AEP, APCo and I&M)

The following table represents the Registrants’ remaining fixed performance obligations satisfied over time as of June 30, 2026. Fixed performance obligations primarily include electricity sales for fixed amounts of energy and stand ready services into PJM’s RPM market. The Registrants elected to apply the exemption to not disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less. Due to the annual establishment of revenue requirements, transmission revenues are excluded from the table below. The Registrant Subsidiaries amounts shown in the table below include affiliated and nonaffiliated revenues.


Company	2026		2027-2028		2029-2030		After 2030		Total
	(in millions)
AEP	$	44	$	87	$	39	$	16	$	186


APCo	8		32		25		12		77
I&M	2		9		5		2		18

Contract Assets and Liabilities

Contract assets are recognized when the Registrants have a right to consideration that is conditional upon the occurrence of an event other than the passage of time, such as future performance under a contract. The Registrants did not have material contract assets as of June 30, 2026 and December 31, 2025.

When the Registrants receive consideration, or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, they recognize a contract liability on the balance sheets in the amount of that consideration. Revenue for such consideration is subsequently recognized in the period or periods in which the remaining performance obligations in the contract are satisfied. The Registrants’ contract liabilities typically arise from services provided under joint use agreements for utility poles. The Registrants did not have material contract liabilities as of June 30, 2026 and December 31, 2025.

Accounts Receivable from Contracts with Customers

Accounts receivable from contracts with customers are presented on the Registrant Subsidiaries’ balance sheets within the Accounts Receivable - Customers line item. The Registrant Subsidiaries’ balances for receivables from contracts that are not recognized in accordance with the accounting guidance for “Revenue from Contracts with Customers” included in Accounts Receivable - Customers were not material as of June 30, 2026 and December 31, 2025. See “Securitized Accounts Receivables - AEP Credit” section of Note 12 for additional information.

The following table represents the amount of affiliated accounts receivable from contracts with customers included in Accounts Receivable - Affiliated Companies on the Registrant Subsidiaries’ balance sheets:


		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
June 30, 2026		$	173	$	137	$	64	$	73	$	128	$	92
December 31, 2025		146		113		67		74		22		65

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Paragraph 9
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 13
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details