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REVENUE FROM CONTRACTS WITH CUSTOMERS
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
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 revenues from contracts with customers, net of respective provisions for refund, by type of revenue:
Year Ended December 31, 2025
VIUT&DAEPTHCoG&MCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$4,969 $2,785 $— $— $— $— $7,754 
Commercial Revenues3,068 1,626 — — — — 4,694 
Industrial Revenues (a)2,718 533 — — — (1)3,250 
Other Retail Revenues242 60 — — — — 302 
Total Retail Revenues10,997 5,004 — — — (1)16,000 
Wholesale and Competitive Retail Revenues:
Generation Revenues 1,033 — — 187 — — 1,220 
Transmission Revenues (b)533 812 2,275 — — (2,017)1,603 
Retail, Trading and Marketing Revenues (c)— — — 2,463 — (66)2,397 
Total Wholesale and Competitive Retail Revenues
1,566 812 2,275 2,650 — (2,083)5,220 
Other Revenues from Contracts with Customers (d)236 259 36 10 137 (196)482 
Total Revenues from Contracts with Customers
12,799 6,075 2,311 2,660 137 (2,280)21,702 
Other Revenues:
Alternative Revenue Programs (e)29 51 66 — — (85)61 
Other Revenues (f)(9)21 — 102 7 (8)113 
Total Other Revenues20 72 66 102 7 (93)174 
Total Revenues$12,819 $6,147 $2,377 $2,762 $144 $(2,373)$21,876 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for AEP Transmission Holdco were $1.8 billion. The affiliated revenues for Vertically Integrated Utilities were $211 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Generation & Marketing were $66 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for Corporate and Other were $113 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 $57 million. The remaining affiliated amounts were immaterial.
(f)Generation & Marketing includes economic hedge activity.
Year Ended December 31, 2024
VIUT&DAEPTHCoG&MCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$4,562 $2,756 $— $— $— $— $7,318 
Commercial Revenues2,731 1,567 — — — — 4,298 
Industrial Revenues (a)2,659 515 — — — (1)3,173 
Other Retail Revenues232 56 — — — — 288 
Total Retail Revenues10,184 4,894 — — — (1)15,077 
Wholesale and Competitive Retail Revenues:
Generation Revenues 748 — — 103 — — 851 
Transmission Revenues (b)483 770 1,978 — — (1,620)1,611 
Renewable Generation Revenues (a)— — — 23 — (4)19 
Retail, Trading and Marketing Revenues (c)— — — 2,081 1 (96)1,986 
Total Wholesale and Competitive Retail Revenues
1,231 770 1,978 2,207 1 (1,720)4,467 
Other Revenues from Contracts with Customers (d)227 198 26 4 185 (214)426 
Total Revenues from Contracts with Customers
11,642 5,862 2,004 2,211 186 (1,935)19,970 
Other Revenues:
Alternative Revenue Programs (e)(22)26 (53)— — (30)(79)
Other Revenues (a) (f)(23)20 — (166)(3)2 (170)
Total Other Revenues(45)46 (53)(166)(3)(28)(249)
Total Revenues$11,597 $5,908 $1,951 $2,045 $183 $(1,963)$19,721 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $1.6 billion and Vertically Integrated Utilities was $177 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $96 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Corporate and Other was $137 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.
(f)Generation & Marketing includes economic hedge activity.
Year Ended December 31, 2023
VIUT&DAEPTHCoG&MCorporate and OtherReconciling AdjustmentsAEP Consolidated
(in millions)
Retail Revenues:
Residential Revenues$4,479 $2,609 $— $— $— $— $7,088 
Commercial Revenues2,679 1,497 — — — — 4,176 
Industrial Revenues (a)2,748 642 — — — (1)3,389 
Other Retail Revenues243 51 — — — — 294 
Total Retail Revenues10,149 4,799 — — — (1)14,947 
Wholesale and Competitive Retail Revenues:
Generation Revenues663 — — 111 — — 774 
Transmission Revenues (b)444 702 1,749 — — (1,418)1,477 
Renewable Generation Revenues (a)— — — 81 — (7)74 
Retail, Trading and Marketing Revenues (c)— — — 1,836 1 (82)1,755 
Total Wholesale and Competitive Retail Revenues
1,107 702 1,749 2,028 1 (1,507)4,080 
Other Revenues from Contracts with Customers (d)204 208 17 9 151 (160)429 
Total Revenues from Contracts with Customers
11,460 5,709 1,766 2,037 152 (1,668)19,456 
Other Revenues:
Alternative Revenue Programs (e)(35)(20)(37)— — (26)(118)
Other Revenues (a) (f)25 24 — (405)16 (16)(356)
Total Other Revenues(10)4 (37)(405)16 (42)(474)
Total Revenues$11,450 $5,713 $1,729 $1,632 $168 $(1,710)$18,982 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEP Transmission Holdco was $1.5 billion and Vertically Integrated Utilities was $205 million. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Generation & Marketing was $82 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for Corporate and Other was $100 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.
(f)Generation & Marketing includes economic hedge activity.
The tables below represent revenues from contracts with customers, net of respective provisions for refund, by type of revenue for the Registrant Subsidiaries:
Year Ended December 31, 2025
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$758 $— $1,863 $895 $2,026 $884 $856 
Commercial Revenues474 — 775 802 1,151 554 636 
Industrial Revenues (a)161 — 799 603 373 369 403 
Other Retail Revenues43 — 111 5 17 107 12 
Total Retail Revenues1,436 — 3,548 2,305 3,567 1,914 1,907 
Wholesale Revenues:
Generation Revenues (b)— — 372 581 — 25 196 
Transmission Revenues (c)717 2,213 175 51 95 46 195 
Total Wholesale Revenues717 2,213 547 632 95 71 391 
Other Revenues from Contracts with Customers (d)41 36 88 114 218 34 38 
Total Revenues from Contracts with Customers2,194 2,249 4,183 3,051 3,880 2,019 2,336 
Other Revenues:
Alternative Revenue Programs (e)5 70 26 (9)46 3 18 
Other Revenues (a)— — — (11)22 — — 
Total Other Revenues5 70 26 (20)68 3 18 
Total Revenues$2,199 $2,319 $4,209 $3,031 $3,948 $2,022 $2,354 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for APCo were $165 million primarily relating 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 $1.8 billion, $79 million and $75 million, respectively. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenues for I&M were $70 million primarily relating 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 $56 million. The remaining affiliated amounts were immaterial.
Year Ended December 31, 2024
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$725 $— $1,772 $847 $2,031 $800 $726 
Commercial Revenues467 — 764 605 1,101 510 558 
Industrial Revenues (a)141 — 813 596 374 349 368 
Other Retail Revenues39 — 113 5 17 100 9 
Total Retail Revenues1,372 — 3,462 2,053 3,523 1,759 1,661 
Wholesale Revenues:
Generation Revenues (b)— — 305 394 — 9 177 
Transmission Revenues (c)673 1,925 185 41 96 42 172 
Total Wholesale Revenues673 1,925 490 435 96 51 349 
Other Revenues from Contracts with Customers (d)36 26 87 116 162 39 33 
Total Revenues from Contracts with Customers
2,081 1,951 4,039 2,604 3,781 1,849 2,043 
Other Revenues:
Alternative Revenue Programs (e)(1)(60)(6)(8)27 (3)(7)
Other Revenues (a)— — — (24)20 — — 
Total Other Revenues(1)(60)(6)(32)47 (3)(7)
Total Revenues$2,080 $1,891 $4,033 $2,572 $3,828 $1,846 $2,036 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $159 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $1.6 billion, APCo was $87 million and SWEPCo was $65 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $75 million primarily relating 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.
Year Ended December 31, 2023
AEP TexasAEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
Retail Revenues:
Residential Revenues$656 $— $1,613 $842 $1,954 $831 $800 
Commercial Revenues415 — 700 575 1,082 539 609 
Industrial Revenues (a)145 — 778 614 497 423 416 
Other Retail Revenues35 — 106 5 15 113 10 
Total Retail Revenues1,251 — 3,197 2,036 3,548 1,906 1,835 
Wholesale Revenues:
Generation Revenues (b)— — 288 327 — 12 177 
Transmission Revenues (c)619 1,704 181 39 83 37 151 
Total Wholesale Revenues619 1,704 469 366 83 49 328 
Other Revenues from Contracts with Customers (d)36 16 74 120 172 22 29 
Total Revenues from Contracts with Customers1,906 1,720 3,740 2,522 3,803 1,977 2,192 
Other Revenues:
Alternative Revenue Programs (e)(4)(49)(19)(11)(15)— (9)
Other Revenues (a)— — — 25 23 — — 
Total Other Revenues(4)(49)(19)14 8 — (9)
Total Revenues$1,902 $1,671 $3,721 $2,536 $3,811 $1,977 $2,183 

(a)Amounts include affiliated and nonaffiliated revenues.
(b)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for APCo was $159 million primarily relating to the PPA with KGPCo. The remaining affiliated amounts were immaterial.
(c)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for AEPTCo was $1.4 billion, APCo was $93 million and SWEPCo was $73 million. The remaining affiliated amounts were immaterial.
(d)Amounts include affiliated and nonaffiliated revenues. The affiliated revenue for I&M was $68 million primarily relating 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.

Performance Obligations

AEP has performance obligations as part of its normal course of business. A performance obligation is a promise to transfer a distinct good or service, or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to a customer. The invoice practical expedient within the accounting guidance for “Revenue from Contracts with Customers” allows for the recognition of revenue from performance obligations in the amount of consideration to which there is a right to invoice the customer and when the amount for which there is a right to invoice corresponds directly to the value transferred to the customer.

The purpose of the invoice practical expedient is to depict an entity’s measure of progress toward completion of the performance obligation within a contract and can only be applied to performance obligations that are satisfied over time and when the invoice is representative of services provided to date. AEP subsidiaries elected to apply the invoice practical expedient to recognize revenue for performance obligations satisfied over time as the invoices from the respective revenue streams are representative of services or goods provided to date to the customer. Performance obligations for AEP’s subsidiaries are summarized as follows:

Retail Revenues

AEP’s subsidiaries within the Vertically Integrated Utilities and Transmission and Distribution Utilities segments have performance obligations to generate, transmit and distribute electricity for sale to rate-regulated retail customers. The performance obligation to deliver electricity is satisfied over time as the customer simultaneously receives and consumes the benefits provided. Revenues are variable as they are subject to the customer’s usage requirements.

Rate-regulated retail customers typically have the right to discontinue receiving service at will, therefore these contracts between AEP’s subsidiaries and their customers for rate-regulated services are generally limited to the services requested and received to date for such arrangements. Retail customers are generally billed on a monthly basis, and payment is typically due within 15 to 20 days after the issuance of the invoice. Payments from REPs are due to AEP Texas within 35 days.
Wholesale Revenues - Generation

AEP’s subsidiaries within the Vertically Integrated Utilities and Generation & Marketing segments have performance obligations to sell electricity to wholesale customers from generation assets in PJM, SPP and ERCOT. The performance obligation to deliver electricity from generation assets is satisfied over time as the customer simultaneously receives and consumes the benefits provided. Wholesale generation revenues are variable as they are subject to the customer’s usage requirements.

AEP’s subsidiaries within the Vertically Integrated Utilities and Generation & Marketing segments also have performance obligations to stand ready in order to promote grid reliability. Stand ready services are sold into PJM’s RPM capacity market. RPM entails a base auction and at least three incremental auctions for a specific PJM delivery year, with the incremental auctions spanning three years. The performance obligation to stand ready is satisfied over time and the consideration for which is variable until the occurrence of the final incremental auction, at which point the performance obligation becomes fixed.

Payments from the RTO for stand ready services are typically received within one week from the issuance of the invoice, which is typically issued weekly. Gross margin resulting from generation sales within the Vertically Integrated Utilities segment are primarily subject to margin sharing agreements with customers and vary by state, where the revenues are reflected gross in the disaggregated revenues tables above.

APCo has a performance obligation to supply wholesale electricity to KGPCo through a PPA. The FERC regulates the cost-based wholesale power transactions between APCo and KGPCo. The purchased power agreement includes a component for the recovery of transmission costs under the FERC OATT. The transmission cost component of purchased power is cost-based and regulated by the Tennessee Regulatory Authority. APCo’s performance obligation under the purchased power agreement is satisfied over time as KGPCo simultaneously receives and consumes the wholesale electricity. APCo’s revenues from the purchased power agreement are presented within the Generation Revenues line in the disaggregated revenues tables above.

Wholesale Revenues - Transmission

AEP’s subsidiaries within the Vertically Integrated Utilities, Transmission and Distribution Utilities and AEP Transmission Holdco segments have performance obligations to transmit electricity to wholesale customers through assets owned and operated by AEP subsidiaries. The performance obligation to provide transmission services in PJM, SPP and ERCOT is partially fixed for a period of one year or less. Payments from the RTO for transmission services are typically received within one week from the issuance of the invoice, which is issued monthly for SPP and ERCOT and weekly for PJM.

AEP subsidiaries within the PJM and SPP regions collect revenues through transmission formula rates. The FERC-approved rates establish the annual transmission revenue requirement (ATRR) and transmission service rates for transmission owners. The formula rates establish rates for a one year period and also include a true-up calculation for the prior year’s billings, allowing for over/under-recovery of the transmission owner’s ATRR. The annual true-ups meet the definition of alternative revenues in accordance with the accounting guidance for “Regulated Operations,” and are therefore presented as such in the disaggregated revenues tables above. AEP subsidiaries within the ERCOT region collect revenues through a combination of base rates and interim Transmission Costs of Services filings that are approved by the PUCT.

The AEP East Companies are parties to the TA, which defines how transmission costs are allocated among the AEP East Companies on a 12-month average coincident peak basis. PSO, SWEPCo and AEPSC are parties to the TCA by and among PSO, SWEPCo and AEPSC, in connection with the operation of the transmission assets of the two AEP utility subsidiaries. AEPTCo is a transmission owner within the PJM and SPP regions providing transmission services to affiliates in accordance with the OATT, TA and TCA. Affiliate revenues as a result of the respective TA and the TCA are reflected as Transmission Revenues in the disaggregated revenues tables above.

Marketing, Competitive Retail and Renewable Revenues

AEP’s subsidiaries within the Generation & Marketing segment have performance obligations to deliver electricity to competitive retail and wholesale customers. Performance obligations for marketing and competitive retail are satisfied over time as the customer simultaneously receives and consumes the benefits provided. Revenues are primarily variable as they are subject to customer’s usage requirements; however, certain contracts mandate a delivery of a set quantity of electricity at a predetermined price, resulting in a fixed performance obligation.

Payment terms under marketing arrangements typically follow standard Edison Electric Institute and International Swaps and Derivatives Association terms, which call for payment in 20 days. Payments for competitive retail and offtake arrangements for renewable assets range from 15 to 60 days and are dependent on the product sold, location and the creditworthiness of customer. Invoices for marketing arrangements, competitive retail and offtake arrangements for renewable assets are issued monthly.
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 December 31, 2025. 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.

Company20262027-20282029-2030After 2030Total
(in millions)
AEP$85 $86 $39 $16 $226 
APCo16 32 23 12 83 
I&M4 9 5 2 20 

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 any material contract assets as of December 31, 2025 and 2024.

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 sheet 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 any material contract liabilities as of December 31, 2025 and 2024.

Accounts Receivable from Contracts with Customers

Accounts receivable from contracts with customers are presented on the Registrants’ balance sheets within the Accounts Receivable - Customers line item. The Registrants’ 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 December 31, 2025 and 2024. See “Securitized Accounts Receivable - AEP Credit” section of Note 15 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:

Years Ended December 31,AEPTCoAPCoI&MOPCoPSOSWEPCo
(in millions)
2025$146 $113 $67 $74 $22 $65 
2024132 84 55 64 13 21 

Contract Costs

Contract costs to obtain or fulfill a contract for AEP subsidiaries within the Generation & Marketing segment are accounted for under the guidance for “Other Assets and Deferred Costs” and presented as a single asset and are neither bifurcated nor reclassified between current and noncurrent assets on the Registrants’ balance sheets. Contract costs to acquire a contract are amortized in a manner consistent with the transfer of goods or services to the customer in Other Operation on the Registrants’ income statements. The Registrants did not have material contract costs as of December 31, 2025 and 2024.