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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2025
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 present AEP’s reportable segment income statement information for the years ended December 31, 2025, 2024 and 2023 and reportable segment balance sheet information as of December 31, 2025 and 2024.  The significant expenses disclosed below align with the segment-level information that is regularly provided to the CODM.
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
2025(in millions)
Revenues from:
External Customers$12,556 $6,097 $493 $2,697 $21,843 $33 $— $21,876 
Other Operating Segments263 50 1,884 65 2,262 111 (2,373)(b)— 
Total Revenues12,819 6,147 2,377 2,762 24,105 144 (2,373)21,876 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation4,056 943 — 2,325 7,324 — (293)7,031 
Other Operation and Maintenance3,884 2,318 194 83 6,479 74 (2,104)4,449 
Asset Impairments and Other Related Charges35 31 — — 66 — — 66 
Depreciation and Amortization2,076 821 487 16 3,400 (20)— 3,380 
Taxes Other Than Income Taxes532 744 328 2 1,606 1 24 1,631 
Allowance for Equity Funds Used During Construction74 77 94 — 245 — — 245 
Interest Expense856 424 241 8 1,529 592 (95)2,026 
Income Tax Expense (Benefit)(60)173 42 95 250 (121)— 129 
Equity Earnings of Unconsolidated Subsidiaries1 2 87 — 90 11 — 101 
Other Segment Items (c)(90)(44)105 (54)(83)(82)95 (70)
Earnings (Loss) Attributable to AEP Common Shareholders$1,605 $816 $1,161 $287 $3,869 $(289)$— $3,580 
Gross Property Additions$7,333 $2,978 $1,615 $12 $11,938 $38 $(70)$11,906 
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 

VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
2024(in millions)
Revenues from:
External Customers$11,414 $5,880 $425 $1,945 $19,664 $57 $— $19,721 
Other Operating Segments183 28 1,526 100 1,837 126 (1,963)(b)— 
Total Revenues11,597 5,908 1,951 2,045 21,501 183 (1,963)19,721 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation3,796 909 — 1,542 6,247 — (311)5,936 
Other Operation and Maintenance3,528 2,166 163 130 5,987 137 (1,672)4,452 
Asset Impairments and Other Related Charges14 53 — 76 143 — — 143 
Depreciation and Amortization1,971 880 440 21 3,312 (22)— 3,290 
Taxes Other Than Income Taxes535 724 315 2 1,576 — 20 1,596 
Allowance for Equity Funds Used During Construction52 69 90 — 211 — — 211 
Interest Expense724 406 222 17 1,369 613 (119)1,863 
Income Tax Expense (Benefit)(282)155 215 26 114 (153)— (39)
Equity Earnings (Loss) of Unconsolidated Subsidiaries1 (1)99 1 100 (6)— 94 
Other Segment Items (c)(89)(43)(5)(57)(194)(107)119 (182)
Earnings (Loss) Attributable to AEP Common Shareholders$1,453 $726 $790 $289 $3,258 $(291)$— $2,967 
Gross Property Additions$3,644 $2,344 $1,572 $35 $7,595 $467 $(32)$8,030 
Total Assets$54,997 $26,864 $18,012 $1,634 $101,507 $5,551 (d)$(3,980)(e)$103,078 
Investments in Equity Method Investees$9 $2 $996 $— $1,007 $49 $— $1,056 
VIUT&DAEPTHCoG&MTotal Reportable SegmentsCorporate and Other (a)Reconciling AdjustmentsConsolidated
2023(in millions)
Revenues from:
External Customers$11,304 $5,677 $397 $1,543 $18,921 $61 $— $18,982 
Other Operating Segments146 36 1,332 89 1,603 107 (1,710)(b)— 
Total Revenues11,450 5,713 1,729 1,632 20,524 168 (1,710)18,982 
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation4,150 1,215 — 1,488 6,853 — (275)6,578 
Other Operation and Maintenance3,211 1,948 142 133 5,434 103 (1,450)4,087 
Asset Impairments and Other Related Charges86 — — — 86 — — 86 
Loss on the Sale of the Competitive Contracted Renewables Portfolio— — — 93 93 — — 93 
Depreciation and Amortization1,876 785 403 43 3,107 (17)— 3,090 
Taxes Other Than Income Taxes513 668 290 6 1,477 — 15 1,492 
Allowance for Equity Funds Used During Construction46 46 83 — 175 — — 175 
Interest Expense765 364 203 76 1,408 594 (195)1,807 
Income Tax Expense (Benefit)(45)140 166 (123)138 (83)— 55 
Equity Earnings (Loss) of Unconsolidated Subsidiaries1 — 83 (17)67 (8)— 59 
Other Segment Items (c)(149)(60)(12)(75)(296)(179)195 (280)
Earnings (Loss) Attributable to AEP Common Shareholders$1,090 $699 $703 $(26)$2,466 $(258)$— $2,208 
Gross Property Additions$3,487 $2,467 $1,529 $13 $7,496 $36 $1 $7,533 
Investments in Equity Method Investees$10 $3 $906 $101 $1,020 $54 $— $1,074 
(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 Period 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 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. Net income (loss) includes 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 years ended December 31, 2025, 2024 and 2023 and reportable segment balance sheet information as of December 31, 2025 and 2024. The significant expenses disclosed below align with the segment-level information that is regularly provided to the CODM.

State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
2025(in millions)
Revenues from:
External Customers
$450 $— $— $450 
Sales to AEP Affiliates
1,869 — — 1,869 
Total Revenues2,319 — — 2,319 
Other Operation and Maintenance185 — — 185 
Depreciation and Amortization
478 — — 478 
Taxes Other Than Income Taxes321 — — 321 
Interest Income
3 308 (306)(a)5 
Allowance for Equity Funds Used During Construction 93 — — 93 
Interest Expense 283 257 (306)(a)234 
Income Tax Expense4 11 — 15 
Other Segment Items (b)— 109 — 109 
Earnings Attributable to AEPTCo Common Shareholders$1,144 $(69)(c)$— $1,075 
Gross Property Additions$1,579 $— $— $1,579 
Total Assets $17,983 $6,766 (d)$(6,750)(e)$17,999 
State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
2024(in millions)
Revenues from:
External Customers
$379 $— $— $379 
Sales to AEP Affiliates
1,512 — — 1,512 
Total Revenues1,891 — — 1,891 
Other Operation and Maintenance156 2 — 158 
Depreciation and Amortization
431 — — 431 
Taxes Other Than Income Taxes309 — — 309 
Interest Income
8 241 (239)(a)10 
Allowance for Equity Funds Used During Construction 89 — — 89 
Interest Expense 214 239 (239)(a)214 
Income Tax Expense190 — — 190 
Earnings Attributable to AEPTCo Common Shareholders$688 $— (c)$— $688 
Gross Property Additions$1,482 $— $— $1,482 
Total Assets $16,888 $8,670 (d)$(9,188)(e)$16,370 

State TranscosAEPTCo ParentReconciling AdjustmentsAEPTCo
Consolidated
2023(in millions)
Revenues from:
External Customers
$354 $— $— $354 
Sales to AEP Affiliates
1,317 — — 1,317 
Total Revenues1,671 — — 1,671 
Other Operation and Maintenance129 — — 129 
Depreciation and Amortization
394 — — 394 
Taxes Other Than Income Taxes283 — — 283 
Interest Income
4 218 (214)(a)8 
Allowance for Equity Funds Used During Construction 83 — — 83 
Interest Expense 194 215 (214)(a)195 
Income Tax Expense145 2 — 147 
Earnings Attributable to AEPTCo Common Shareholders$613 $1 (c)$— $614 
Gross Property Additions$1,503 $— $— $1,503 
(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.