v3.26.3
BUSINESS SEGMENTS
 9 Months Ended
Sep. 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 ROEs, FERC-approved ROEs or are engaged in settlement proceedings at the FERC to establish an authorized ROE.

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 nine months ended September 30, 2026 and 2025 and reportable segment balance sheet information as of September 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 September 30, 2026
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$3,923 $1,853 $133 $922 $6,831 $1 $— $6,832 
Other Operating Segments78 15 482 28 603 37 (640)(b)— 
Total Revenues4,001 1,868 615 950 7,434 38 (640)6,832 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation1,121 258 — 792 2,171 — (84)2,087 
Other Operation and Maintenance1,118 765 65 48 1,996 41 (562)1,475 
Depreciation and Amortization659 231 136 4 1,030 (5)— 1,025 
Taxes Other Than Income Taxes146 202 77 1 426 1 6 433 
Allowance for Equity Funds Used During Construction25 29 27 — 81 — — 81 
Interest Expense280 119 71 2 472 176 (42)606 
Income Tax Expense (Benefit)20 51 69 26 166 (41)— 125 
Equity Earnings of Unconsolidated Subsidiaries— — 24 — 24 1 — 25 
Other Segment Items (c)(15)(13)29 (19)(18)(24)42 — 
Earnings (Loss) Attributable to AEP Common Shareholders$697 $284 $219 $96 $1,296 $(109)$— $1,187 
Gross Property Additions$2,442 $1,029 $878 $97 $4,446 $170 $(36)$4,580 

Three Months Ended September 30, 2025
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$3,511 $1,680 $120 $694 $6,005 $6 $— $6,011 
Other Operating Segments75 10 453 18 556 30 (586)(b)— 
Total Revenues3,586 1,690 573 712 6,561 36 (586)6,011 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation1,168 264 — 625 2,057 — (76)1,981 
Other Operation and Maintenance998 624 53 35 1,710 8 (515)1,203 
Depreciation and Amortization547 210 124 3 884 (5)— 879 
Taxes Other Than Income Taxes142 191 87 1 421 — 5 426 
Allowance for Equity Funds Used During Construction20 17 22 — 59 — — 59 
Interest Expense219 107 63 1 390 140 (21)509 
Income Tax Expense (Benefit)(25)57 61 16 109 30 — 139 
Equity Earnings of Unconsolidated Subsidiaries— 1 20 — 21 — — 21 
Other Segment Items (c)(21)(12)27 (14)(20)(19)21 (18)
Earnings (Loss) Attributable to AEP Common Shareholders$578 $267 $200 $45 $1,090 $(118)$— $972 
Gross Property Additions$1,203 $711 $368 $3 $2,285 $18 $(24)$2,279 
Nine Months Ended September 30, 2026
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$10,338 $5,015 $389 $2,546 $18,288 $9 $— $18,297 
Other Operating Segments223 45 1,434 65 1,767 90 (1,857)(b)— 
Total Revenues10,561 5,060 1,823 2,611 20,055 99 (1,857)18,297 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation3,096 716 — 2,234 6,046 — (238)5,808 
Other Operation and Maintenance3,190 2,000 175 63 5,428 106 (1,640)3,894 
Asset Impairments and Other Related Charges31 — — — 31 — — 31 
Depreciation and Amortization1,787 658 397 14 2,856 (14)— 2,842 
Taxes Other Than Income Taxes433 592 254 2 1,281 1 21 1,303 
Allowance for Equity Funds Used During Construction69 82 75 — 226 — — 226 
Interest Expense789 341 208 5 1,343 512 (112)1,743 
Income Tax Expense (Benefit)(92)128 199 77 312 (91)— 221 
Equity Earnings of Unconsolidated Subsidiaries1 — 73 — 74 5 — 79 
Other Segment Items (c)(46)(36)85 (52)(49)(77)112 (14)
Earnings (Loss) Attributable to AEP Common Shareholders$1,443 $743 $653 $268 $3,107 $(333)$— $2,774 
Gross Property Additions$6,050 $3,094 $1,782 $176 $11,102 $453 $(54)$11,501 

Nine Months Ended September 30, 2025
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Revenues from:
External Customers$9,531 $4,638 $391 $1,976 $16,536 $25 $— $16,561 
Other Operating Segments208 28 1,481 49 1,766 85 (1,851)(b)— 
Total Revenues9,739 4,666 1,872 2,025 18,302 110 (1,851)16,561 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation3,164 730 — 1,701 5,595 — (220)5,375 
Other Operation and Maintenance2,863 1,742 136 65 4,806 44 (1,648)3,202 
Depreciation and Amortization1,594 614 361 12 2,581 (15)— 2,566 
Taxes Other Than Income Taxes398 555 240 2 1,195 1 17 1,213 
Allowance for Equity Funds Used During Construction52 55 66 — 173 — — 173 
Interest Expense621 318 179 5 1,123 438 (68)1,493 
Income Tax Expense (Benefit)(117)142 (11)70 84 (71)— 13 
Equity Earnings of Unconsolidated Subsidiaries1 2 66 — 69 11 — 80 
Other Segment Items (c)(66)(34)86 (39)(53)(61)68 (46)
Earnings (Loss) Attributable to AEP Common Shareholders$1,335 $656 $1,013 $209 $3,213 $(215)$— $2,998 
Gross Property Additions$4,356 $2,079 $1,182 $10 $7,627 $54 $(23)$7,658 
September 30, 2026
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
(in millions)
Total Assets$67,958 $32,162 $21,285 $3,130 $124,535 $7,136 (d)$(5,976)(e)$125,695 
Investments in Equity Method Investees$8 $2 $1,112 $— $1,122 $282 $— $1,404 

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 nine months ended September 30, 2026 and 2025 and reportable segment balance sheet information as of September 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 September 30, 2026
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$112 $— $— $112 
Sales to AEP Affiliates480 — — 480 
Other Revenues2 — — 2 
Total Revenues594 — — 594 
Other Operation and Maintenance60 — — 60 
Depreciation and Amortization 133 — — 133 
Taxes Other Than Income Taxes76 — — 76 
Interest Income— 78 (75)(a)3 
Allowance for Equity Funds Used During Construction 27 — — 27 
Interest Expense 68 74 (75)(a)67 
Income Tax Expense60 2 — 62 
Other Segment Items (b)— 30 — 30 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$224 $(28)(c)$— $196 
Gross Property Additions$875 $— $— $875 

Three Months Ended September 30, 2025
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$108 $— $— $108 
Sales to AEP Affiliates450 — — 450 
Total Revenues558 — — 558 
Other Operation and Maintenance51 — — 51 
Depreciation and Amortization 121 — — 121 
Taxes Other Than Income Taxes86 — — 86 
Interest Income1 66 (66)(a)1 
Allowance for Equity Funds Used During Construction 22 — — 22 
Interest Expense 62 65 (66)(a)61 
Income Tax Expense56 1 — 57 
Other Segment Items (b)— 26 — 26 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$205 $(26)(c)$— $179 
Gross Property Additions$358 $— $— $358 
Nine Months Ended September 30, 2026
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$329 $— $— $329 
Sales to AEP Affiliates1,422 — — 1,422 
Other Revenues9 — — 9 
Total Revenues1,760 — — 1,760 
Other Operation and Maintenance164 — — 164 
Depreciation and Amortization 389 — — 389 
Taxes Other Than Income Taxes250 — — 250 
Interest Income1 224 (218)(a)7 
Allowance for Equity Funds Used During Construction 75 — — 75 
Interest Expense 196 218 (218)(a)196 
Income Tax Expense182 2 — 184 
Other Segment Items (b)— 88 — 88 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$655 $(84)(c)$— $571 
Gross Property Additions$1,740 $— $— $1,740 

Nine Months Ended September 30, 2025
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Revenues from:
External Customers$357 $— $— $357 
Sales to AEP Affiliates1,470 — — 1,470 
Total Revenues1,827 — — 1,827 
Other Operation and Maintenance127 — — 127 
Depreciation and Amortization 354 — — 354 
Taxes Other Than Income Taxes236 — — 236 
Interest Income2 239 (238)(a)3 
Allowance for Equity Funds Used During Construction 65 — — 65 
Interest Expense 223 188 (238)(a)173 
Income Tax Expense (Benefit)(39)11 — (28)
Other Segment Items (b)— 87 — 87 
Earnings (Loss) Attributable to AEPTCo Common Shareholders$993 $(47)(c)$— $946 
Gross Property Additions$1,145 $— $— $1,145 

September 30, 2026
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
(in millions)
Total Assets $19,391 $7,111 (d)$(7,033)(e)$19,469 

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.