REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Sep. 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 September 30, 2026
	VIU (a)		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	1,612	$	905	$	—	$	—	$	—	$	—	$	2,517
Commercial Revenues	997		518		—		—		—		—		1,515
Industrial Revenues (b)	738		149		—		—		—		—		887
Other Retail Revenues	76		16		—		—		—		—		92
Total Retail Revenues	3,423		1,588		—		—		—		—		5,011

Wholesale and Competitive Retail Revenues:
Generation Revenues	338		—		—		27		1		90		456
Transmission Revenues (c)	169		220		610		—		—		(548)		451

Retail, Trading and Marketing Revenues (d)	—		—		—		806		—		(117)		689
Total Wholesale and Competitive Retail Revenues	507		220		610		833		1		(575)		1,596

Other Revenues from Contracts with Customers (e)	95		54		8		58		35		(64)		186

Total Revenues from Contracts with Customers	4,025		1,862		618		891		36		(639)		6,793

Other Revenues:
Alternative Revenue Programs (f)	(14)		1		(3)		—		—		2		(14)
Other Revenues (b) (g)	(10)		5		—		59		2		(3)		53
Total Other Revenues	(24)		6		(3)		59		2		(1)		39

Total Revenues	$	4,001	$	1,868	$	615	$	950	$	38	$	(640)	$	6,832

(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 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 $480 million. The affiliated revenues for Vertically Integrated Utilities were $68 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $117 million. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $35 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 September 30, 2025
	VIU		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	1,436	$	798	$	—	$	—	$	—	$	—	$	2,234
Commercial Revenues	861		423		—		—		—		—		1,284
Industrial Revenues (a)	710		134		—		—		—		(1)		843
Other Retail Revenues	67		15		—		—		—		—		82
Total Retail Revenues	3,074		1,370		—		—		—		(1)		4,443

Wholesale and Competitive Retail Revenues:
Generation Revenues	260		—		—		51		—		—		311
Transmission Revenues (b)	141		210		531		—		—		(480)		402

Retail, Trading and Marketing Revenues (c)	—		—		—		648		—		(18)		630
Total Wholesale and Competitive Retail Revenues	401		210		531		699		—		(498)		1,343

Other Revenues from Contracts with Customers (d)	97		84		12		3		34		(53)		177

Total Revenues from Contracts with Customers	3,572		1,664		543		702		34		(552)		5,963

Other Revenues:
Alternative Revenue Programs (e)	8		18		30		—		—		(32)		24
Other Revenues (a) (f)	6		8		—		10		2		(2)		24
Total Other Revenues	14		26		30		10		2		(34)		48

Total Revenues	$	3,586	$	1,690	$	573	$	712	$	36	$	(586)	$	6,011

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $423 million. The affiliated revenues for Vertically Integrated Utilities were $56 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $18 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $31 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 affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $25 million. The remaining affiliated amounts were immaterial.

(f)Generation & Marketing includes economic hedge activity.


	Three Months Ended September 30, 2026
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO (a)		SWEPCo (a)
	(in millions)
Retail Revenues:
Residential Revenues	$	272	$	—	$	459	$	245	$	633	$	442	$	338
Commercial Revenues	132		—		203		281		385		224		202
Industrial Revenues (b)	43		—		195		153		106		130		115
Other Retail Revenues	11		—		27		1		4		42		3
Total Retail Revenues	458		—		884		680		1,128		838		658

Wholesale Revenues:
Generation Revenues (c)	—		—		137		169		—		5		51
Transmission Revenues (d)	192		589		62		12		29		19		60
Total Wholesale Revenues	192		589		199		181		29		24		111

Other Revenues from Contracts with Customers (e)	12		7		49		43		43		8		10

Total Revenues from Contracts with Customers	662		596		1,132		904		1,200		870		779

Other Revenues:
Alternative Revenue Programs (f)	(3)		(2)		(1)		—		4		(2)		(9)
Other Revenues (b)	—		—		2		(10)		4		—		—
Total Other Revenues	(3)		(2)		1		(10)		8		(2)		(9)

Total Revenues	$	659	$	594	$	1,133	$	894	$	1,208	$	868	$	770

(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 $477 million, $34 million and $26 million, respectively. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $23 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.


	Three Months Ended September 30, 2025
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	244	$	—	$	438	$	249	$	554	$	335	$	297
Commercial Revenues	124		—		195		217		298		185		189
Industrial Revenues (a)	42		—		198		150		92		112		112
Other Retail Revenues	11		—		26		1		5		33		4
Total Retail Revenues	421		—		857		617		949		665		602

Wholesale Revenues:
Generation Revenues (b)	—		—		107		141		—		7		44
Transmission Revenues (c)	184		516		44		11		25		8		61
Total Wholesale Revenues	184		516		151		152		25		15		105

Other Revenues from Contracts with Customers (d)	11		12		42		36		74		14		15

Total Revenues from Contracts with Customers	616		528		1,050		805		1,048		694		722

Other Revenues:
Alternative Revenue Programs (e)	4		30		6		1		14		—		2
Other Revenues (a)	(1)		—		1		6		8		—		—
Total Other Revenues	3		30		7		7		22		—		2

Total Revenues	$	619	$	558	$	1,057	$	812	$	1,070	$	694	$	724

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $41 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 $419 million, $19 million and $28 million, respectively. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $19 million primarily related to barging, urea transloading and other transportation services. 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 affiliated and nonaffiliated revenues. The affiliated revenues for AEPTCo were $25 million. The remaining affiliated amounts were immaterial.


	Nine Months Ended September 30, 2026
	VIU (a)		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	4,048	$	2,300	$	—	$	—	$	—	$	—	$	6,348
Commercial Revenues	2,648		1,400		—		—		—		—		4,048
Industrial Revenues (b)	2,089		422		—		—		—		—		2,511
Other Retail Revenues	195		45		—		—		—		—		240
Total Retail Revenues	8,980		4,167		—		—		—		—		13,147

Wholesale and Competitive Retail Revenues:
Generation Revenues	936		—		—		126		1		90		1,153
Transmission Revenues (c)	485		657		1,795		—		—		(1,605)		1,332

Retail, Trading and Marketing Revenues (d)	—		—		—		2,179		—		(154)		2,025
Total Wholesale and Competitive Retail Revenues	1,421		657		1,795		2,305		1		(1,669)		4,510

Other Revenues from Contracts with Customers (e)	220		209		31		137		92		(171)		518

Total Revenues from Contracts with Customers	10,621		5,033		1,826		2,442		93		(1,840)		18,175

Other Revenues:
Alternative Revenue Programs (f)	(21)		8		(3)		—		—		(9)		(25)
Other Revenues (b) (g)	(39)		19		—		169		6		(8)		147

Total Other Revenues	(60)		27		(3)		169		6		(17)		122

Total Revenues	$	10,561	$	5,060	$	1,823	$	2,611	$	99	$	(1,857)	$	18,297

(b)Amounts include immaterial affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $1.4 billion. The affiliated revenues for Vertically Integrated Utilities were $186 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $154 million. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $91 million. The remaining affiliated amounts were immaterial.

(g)Generation & Marketing includes economic hedge activity.


	Nine Months Ended September 30, 2025
	VIU		T&D		AEPTHCo		G&M		Corporate and Other		Reconciling Adjustments		AEP Consolidated
	(in millions)
Retail Revenues:
Residential Revenues	$	3,818	$	2,149	$	—	$	—	$	—	$	—	$	5,967
Commercial Revenues	2,276		1,225		—		—		—		—		3,501
Industrial Revenues (a)	2,032		402		—		—		—		(1)		2,433
Other Retail Revenues	182		45		—		—		—		—		227
Total Retail Revenues	8,308		3,821		—		—		—		(1)		12,128

Wholesale and Competitive Retail Revenues:
Generation Revenues	802		—		—		140		—		—		942
Transmission Revenues (b)	419		604		1,751		—		—		(1,552)		1,222

Retail, Trading and Marketing Revenues (c)	—		—		—		1,808		—		(50)		1,758
Total Wholesale and Competitive Retail Revenues	1,221		604		1,751		1,948		—		(1,602)		3,922

Other Revenues from Contracts with Customers (d)	198		192		30		7		104		(148)		383

Total Revenues from Contracts with Customers	9,727		4,617		1,781		1,955		104		(1,751)		16,433

Other Revenues:
Alternative Revenue Programs (e)	26		34		91		—		—		(94)		57
Other Revenues (a) (f)	(14)		15		—		70		6		(6)		71
Total Other Revenues	12		49		91		70		6		(100)		128

Total Revenues	$	9,739	$	4,666	$	1,872	$	2,025	$	110	$	(1,851)	$	16,561

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $1.4 billion. The affiliated revenues for Vertically Integrated Utilities were $160 million. The remaining affiliated amounts were immaterial.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $50 million. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $86 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 affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $74 million. The remaining affiliated amounts were immaterial.

(f)Generation & Marketing includes economic hedge activity.


	Nine Months Ended September 30, 2026
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO (a)		SWEPCo (a)
	(in millions)
Retail Revenues:
Residential Revenues	$	620	$	—	$	1,396	$	679	$	1,680	$	852	$	744
Commercial Revenues	365		—		579		807		1,034		494		526
Industrial Revenues (b)	122		—		578		458		300		316		312
Other Retail Revenues	32		—		80		4		12		96		9
Total Retail Revenues	1,139		—		2,633		1,948		3,026		1,758		1,591

Wholesale Revenues:
Generation Revenues (c)	—		—		314		573		—		10		145
Transmission Revenues (d)	573		1,733		182		34		84		47		173
Total Wholesale Revenues	573		1,733		496		607		84		57		318

Other Revenues from Contracts with Customers (e)	49		30		82		117		160		17		34

Total Revenues from Contracts with Customers	1,761		1,763		3,211		2,672		3,270		1,832		1,943

Other Revenues:
Alternative Revenue Program (f)	(7)		(3)		2		(4)		15		(4)		(14)
Other Revenues (b)	—		—		3		(41)		20		—		—
Total Other Revenues	(7)		(3)		5		(45)		35		(4)		(14)

Total Revenues	$	1,754	$	1,760	$	3,216	$	2,627	$	3,305	$	1,828	$	1,929

(b)Amounts include immaterial affiliated and nonaffiliated revenues.

(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $139 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 $1.4 billion, $99 million and $68 million, respectively. The remaining affiliated amounts were immaterial.

(e)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $57 million primarily related to barging, urea transloading and other transportation services. The remaining affiliated amounts were immaterial.


	Nine Months Ended September 30, 2025
	AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
Retail Revenues:
Residential Revenues	$	596	$	—	$	1,410	$	671	$	1,553	$	701	$	681
Commercial Revenues	358		—		583		562		867		422		485
Industrial Revenues (a)	123		—		600		440		279		274		305
Other Retail Revenues	32		—		82		4		13		79		9
Total Retail Revenues	1,109		—		2,675		1,677		2,712		1,476		1,480

Wholesale Revenues:
Generation Revenues (b)	—		—		274		474		—		12		148
Transmission Revenues (c)	533		1,704		132		40		71		38		155
Total Wholesale Revenues	533		1,704		406		514		71		50		303

Other Revenues from Contracts with Customers (d)	29		30		75		93		164		29		31

Total Revenues from Contracts with Customers	1,671		1,734		3,156		2,284		2,947		1,555		1,814

Other Revenues:
Alternative Revenue Programs (e)	3		93		20		2		31		2		11
Other Revenues (a)	(1)		—		1		(14)		15		—		—
Total Other Revenues	2		93		21		(12)		46		2		11

Total Revenues	$	1,673	$	1,827	$	3,177	$	2,272	$	2,993	$	1,557	$	1,825

(a)Amounts include immaterial affiliated and nonaffiliated revenues.

(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $122 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 $1.4 billion, $60 million and $59 million, respectively. The remaining affiliated amounts were immaterial.

(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $55 million primarily related to barging, urea transloading and other transportation services. 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 affiliated and nonaffiliated revenues. The affiliated revenues for AEPTCo were $73 million. 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 September 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	$	18	$	54	$	12	$	2	$	86


APCo	2		13		7		2		24
I&M	—		1		1		1		3

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 September 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.

AEP's contract liabilities primarily relate to advance payments received under contracts for the procurement of long-lead-time transmission and distribution equipment and related construction services, as well as services provided under joint use agreements for utility poles. During 2026, AEP T&D Services entered into additional transmission and distribution equipment arrangements under which customers provided consideration in advance of performance. Revenue associated with these arrangements is recognized over time as the related performance obligations are satisfied. AEP T&D Services had contract liabilities of $197 million and $37 million as of September 30, 2026 and December 31, 2025, respectively. Contract liabilities for the Registrant Subsidiaries were not material as of September 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 September 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:


		AEP Texas		AEPTCo		APCo		I&M		OPCo		PSO		SWEPCo
	(in millions)
September 30, 2026		$	1	$	157	$	149	$	83	$	90	$	35	$	48
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
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

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-Topic 606
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

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-Topic 606
-SubTopic 10
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

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-Topic 606
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

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-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

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