BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 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 represent AEP’s reportable segment income statement information for the three and nine months ended September 30, 2025 and 2024 and reportable segment balance sheet information as of September 30, 2025 and December 31, 2024. The significant expenses disclosed below align with the segment-level information that is regularly provided to the CODM.

	Three Months Ended September 30, 2025
	VIU		T&D		AEPTHCo		G&M		Total Reportable Segments		Corporate and Other (a)		Reconciling Adjustments			Consolidated
	(in millions)
Revenues from:
External Customers	$	3,511.2	$	1,680.2	$	119.7	$	693.8	$	6,004.9	$	5.5	$	—		$	6,010.4
Other Operating Segments	74.5		9.1		453.5		18.9		556.0		30.4		(586.4)		(b)	—
Total Revenues	3,585.7		1,689.3		573.2		712.7		6,560.9		35.9		(586.4)			6,010.4
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	1,168.4		263.8		—		624.9		2,057.1		—		(76.9)			1,980.2
Other Operation and Maintenance	998.2		623.5		53.3		35.4		1,710.4		8.1		(515.6)			1,202.9
Depreciation and Amortization	547.4		209.8		123.5		3.9		884.6		(5.0)		—			879.6
Taxes Other Than Income Taxes	141.6		190.4		87.3		0.7		420.0		0.2		6.1			426.3
Allowance for Equity Funds Used During Construction	19.4		18.3		20.8		—		58.5		—		—			58.5
Interest Expense	219.1		106.4		63.3		1.5		390.3		140.2		(22.0)			508.5
Income Tax Expense (Benefit)	(25.6)		57.2		62.0		15.5		109.1		29.6		—			138.7
Equity Earnings of Unconsolidated Subsidiaries	0.2		0.1		20.8		—		21.1		—		—			21.1
Other Segment Items (c)	(22.0)		(11.0)		25.5		(13.5)		(21.0)		(19.2)		22.0			(18.2)
Earnings (Loss) Attributable to AEP Common Shareholders	$	578.2	$	267.6	$	199.9	$	44.3	$	1,090.0	$	(118.0)	$	—		$	972.0
Gross Property Additions	$	1,203.2	$	711.2	$	368.0	$	3.2	$	2,285.6	$	18.5	$	(25.1)		$	2,279.0

	Three Months Ended September 30, 2024
	VIU		T&D		AEPTHCo		G&M		Total Reportable Segments		Corporate and Other (a)		Reconciling Adjustments			Consolidated
	(in millions)
Revenues from:
External Customers	$	3,248.8	$	1,568.5	$	113.1	$	483.7	$	5,414.1	$	6.0	$	—		$	5,420.1
Other Operating Segments	54.2		6.9		399.4		15.4		475.9		32.1		(508.0)		(b)	—
Total Revenues	3,303.0		1,575.4		512.5		499.1		5,890.0		38.1		(508.0)			5,420.1
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	1,100.4		213.2		—		413.6		1,727.2		—		(68.0)			1,659.2
Other Operation and Maintenance	881.6		599.1		40.0		20.6		1,541.3		53.6		(445.4)			1,149.5
Depreciation and Amortization	530.6		212.8		110.5		4.0		857.9		(5.2)		—			852.7
Taxes Other Than Income Taxes	138.1		181.6		81.2		0.8		401.7		0.1		5.4			407.2
Allowance for Equity Funds Used During Construction	12.9		17.0		24.3		—		54.2		—		—			54.2
Interest Expense	189.9		106.4		56.2		4.0		356.5		168.4		(26.1)			498.8
Income Tax Expense (Benefit)	(64.6)		49.4		60.9		(23.1)		22.6		14.9		—			37.5
Equity Earnings (Loss) of Unconsolidated Subsidiaries	0.4		—		23.0		—		23.4		(6.1)		—			17.3
Other Segment Items (c)	(31.2)		(15.3)		(3.7)		(14.1)		(64.3)		(34.7)		26.1			(72.9)
Earnings (Loss) Attributable to AEP Common Shareholders	$	571.5	$	245.2	$	214.7	$	93.3	$	1,124.7	$	(165.1)	$	—		$	959.6
Gross Property Additions	$	809.3	$	609.7	$	425.8	$	13.2	$	1,858.0	$	7.4	$	(15.1)		$	1,850.3

	Nine Months Ended September 30, 2025
	VIU		T&D		AEPTHCo		G&M		Total Reportable Segments		Corporate and Other (a)		Reconciling Adjustments			Consolidated
	(in millions)
Revenues from:
External Customers	$	9,531.2	$	4,638.3	$	390.7	$	1,975.4	$	16,535.6	$	25.1	$	—		$	16,560.7
Other Operating Segments	207.5		27.7		1,481.2		50.4		1,766.8		85.0		(1,851.8)		(b)	—
Total Revenues	9,738.7		4,666.0		1,871.9		2,025.8		18,302.4		110.1		(1,851.8)			16,560.7
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	3,164.3		730.3		—		1,700.8		5,595.4		—		(220.9)			5,374.5
Other Operation and Maintenance	2,863.4		1,741.7		135.7		65.5		4,806.3		44.4		(1,648.6)			3,202.1
Depreciation and Amortization	1,593.9		614.2		360.8		12.3		2,581.2		(15.1)		—			2,566.1
Taxes Other Than Income Taxes	398.1		554.9		240.1		1.7		1,194.8		0.8		17.7			1,213.3
Allowance for Equity Funds Used During Construction	51.8		56.4		64.7		—		172.9		—		—			172.9
Interest Expense	620.8		318.0		178.9		5.4		1,123.1		438.3		(68.5)			1,492.9
Income Tax Expense (Benefit)	(117.2)		141.9		(10.4)		70.0		84.3		(71.0)		—			13.3
Equity Earnings of Unconsolidated Subsidiaries	0.8		1.5		66.5		—		68.8		11.1		—			79.9
Other Segment Items (c)	(67.0)		(33.2)		85.1		(38.7)		(53.8)		(61.4)		68.5			(46.7)
Earnings (Loss) Attributable to AEP Common Shareholders	$	1,335.0	$	656.1	$	1,012.9	$	208.8	$	3,212.8	$	(214.8)	$	—		$	2,998.0
Gross Property Additions	$	4,356.4	$	2,078.9	$	1,181.9	$	9.9	$	7,627.1	$	54.3	$	(22.9)		$	7,658.5

	Nine Months Ended September 30, 2024
	VIU		T&D		AEPTHCo		G&M		Total Reportable Segments		Corporate and Other (a)		Reconciling Adjustments			Consolidated
	(in millions)
Revenues from:
External Customers	$	8,722.0	$	4,480.5	$	332.3	$	1,442.1	$	14,976.9	$	48.1	$	—		$	15,025.0
Other Operating Segments	147.9		21.0		1,167.4		88.0		1,424.3		100.5		(1,524.8)		(b)	—
Total Revenues	8,869.9		4,501.5		1,499.7		1,530.1		16,401.2		148.6		(1,524.8)			15,025.0
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation	2,970.3		729.0		—		1,151.0		4,850.3		—		(246.8)			4,603.5
Other Operation and Maintenance	2,720.1		1,639.0		122.8		94.5		4,576.4		114.6		(1,292.9)			3,398.1
Asset Impairments and Other Related Charges	13.4		52.9		—		76.2		142.5		—		—			142.5
Depreciation and Amortization	1,470.4		662.2		327.5		17.3		2,477.4		(15.7)		—			2,461.7
Taxes Other Than Income Taxes	410.7		550.4		233.4		1.5		1,196.0		0.3		14.9			1,211.2
Allowance for Equity Funds Used During Construction	37.4		50.9		64.7		—		153.0		—		—			153.0
Interest Expense	537.3		298.4		166.4		14.9		1,017.0		479.5		(96.5)			1,400.0
Income Tax Expense (Benefit)	(324.5)		116.3		172.2		(4.3)		(40.3)		(57.4)		—			(97.7)
Equity Earnings (Loss) of Unconsolidated Subsidiaries	1.1		(0.8)		72.6		0.9		73.8		(6.8)		—			67.0
Other Segment Items (c)	(87.3)		(38.9)		(9.4)		(46.2)		(181.8)		(92.0)		96.5			(177.3)
Earnings (Loss) Attributable to AEP Common Shareholders	$	1,198.0	$	542.3	$	624.1	$	226.1	$	2,590.5	$	(287.5)	$	—		$	2,303.0
Gross Property Additions	$	2,290.2	$	1,730.8	$	1,120.4	$	33.2	$	5,174.6	$	16.9	$	(22.9)		$	5,168.6

	September 30, 2025
	VIU		T&D		AEPTHCo		G&M		Total Reportable Segments		Corporate and Other (a)			Reconciling Adjustments			Consolidated
	(in millions)
Total Assets	$	59,005.8	$	28,429.9	$	18,918.9	$	1,899.7	$	108,254.3	$	6,172.3	(d)	$	(4,173.1)	(e)	$	110,253.5
Investments in Equity Method Investees	$	8.8	$	3.6	$	1,057.9	$	—	$	1,070.3	$	165.5		$	—		$	1,235.8

	December 31, 2024
	VIU		T&D		AEPTHCo		G&M		Total Reportable Segments		Corporate and Other (a)			Reconciling Adjustments			Consolidated
	(in millions)
Total Assets	$	54,996.5	$	26,864.3	$	18,011.9	$	1,633.9	$	101,506.6	$	5,550.8	(d)	$	(3,979.4)	(e)	$	103,078.0
Investments in Equity Method Investees	$	9.1	$	2.0	$	996.1	$	—	$	1,007.2	$	48.7		$	—		$	1,055.9

(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 intersegment 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 three and nine months ended September 30, 2025 and 2024 and reportable segment balance sheet information as of September 30, 2025 and December 31, 2024. The significant expenses disclosed below align with the segment-level information that is regularly provided to the CODM.

	Three Months Ended September 30, 2025
	State Transcos		AEPTCo Parent			Reconciling Adjustments			AEPTCo Consolidated
	(in millions)
Revenues from:
External Customers	$	107.9	$	—		$	—		$	107.9
Sales to AEP Affiliates	450.1		—			—			450.1
Total Revenues	558.0		—			—			558.0
Other Operation and Maintenance	49.8		0.1			—			49.9
Depreciation and Amortization	121.3		—			—			121.3
Taxes Other Than Income Taxes	85.9		—			—			85.9
Interest Income	0.8		65.5			(65.0)		(a)	1.3
Allowance for Equity Funds Used During Construction	20.8		—			—			20.8
Interest Expense	61.2		65.1			(65.0)		(a)	61.3
Income Tax Expense	56.1		0.1			—			56.2
Other Segment Items (b)	—		26.6			—			26.6
Earnings (Loss) Attributable to AEPTCo Common Shareholders	$	205.3	$	(26.4)	(c)	$	—		$	178.9
Gross Property Additions	$	357.8	$	—		$	—		$	357.8

	Three Months Ended September 30, 2024
	State Transcos		AEPTCo Parent			Reconciling Adjustments			AEPTCo Consolidated
	(in millions)
Revenues from:
External Customers	$	101.1	$	—		$	—		$	101.1
Sales to AEP Affiliates	395.9		—			—			395.9
Other Revenues	0.2		—			—			0.2
Total Revenues	497.2		—			—			497.2
Other Operation and Maintenance	37.3		0.1			—			37.4
Depreciation and Amortization	108.2		—			—			108.2
Taxes Other Than Income Taxes	79.7		—			—			79.7
Interest Income	2.3		61.7			(60.9)		(a)	3.1
Allowance for Equity Funds Used During Construction	24.3		—			—			24.3
Interest Expense	54.2		61.0			(60.9)		(a)	54.3
Income Tax Expense	53.6		0.1			—			53.7
Earnings Attributable to AEPTCo Common Shareholders	$	190.8	$	0.5	(c)	$	—		$	191.3
Gross Property Additions	$	385.1	$	—		$	—		$	385.1

	Nine Months Ended September 30, 2025
	State Transcos		AEPTCo Parent			Reconciling Adjustments			AEPTCo Consolidated
	(in millions)
Revenues from:
External Customers	$	356.8	$	—		$	—		$	356.8
Sales to AEP Affiliates	1,470.0		—			—			1,470.0
Other Revenues	0.1		—			—			0.1
Total Revenues	1,826.9		—			—			1,826.9
Other Operation and Maintenance	126.2		0.3			—			126.5
Depreciation and Amortization	354.3		—			—			354.3
Taxes Other Than Income Taxes	235.8		—			—			235.8
Interest Income	1.8		238.8			(237.5)		(a)	3.1
Allowance for Equity Funds Used During Construction	64.7		—			—			64.7
Interest Expense	222.7		187.7			(237.5)		(a)	172.9
Income Tax Expense (Benefit)	(39.1)		10.8			—			(28.3)
Other Segment Items (b)	—		87.3			—			87.3
Earnings (Loss) Attributable to AEPTCo Common Shareholders	$	993.5	$	(47.3)	(c)	$	—		$	946.2
Gross Property Additions	$	1,144.7	$	—		$	—		$	1,144.7

	Nine Months Ended September 30, 2024
	State Transcos		AEPTCo Parent			Reconciling Adjustments			AEPTCo Consolidated
	(in millions)
Revenues from:
External Customers	$	295.1	$	—		$	—		$	295.1
Sales to AEP Affiliates	1,157.1		—			—			1,157.1
Other Revenues	3.0		—			—			3.0
Total Revenues	1,455.2		—			—			1,455.2
Other Operation and Maintenance	115.9		1.7			—			117.6
Depreciation and Amortization	320.8		—			—			320.8
Taxes Other Than Income Taxes	228.6		—			—			228.6
Interest Income	6.8		180.5			(178.0)		(a)	9.3
Allowance for Equity Funds Used During Construction	64.7		—			—			64.7
Interest Expense	160.3		178.2			(178.0)		(a)	160.5
Income Tax Expense	153.4		0.1			—			153.5
Earnings Attributable to AEPTCo Common Shareholders	$	547.7	$	0.5	(c)	$	—		$	548.2
Gross Property Additions	$	1,042.9	$	—		$	—		$	1,042.9

	September 30, 2025
	State Transcos		AEPTCo Parent			Reconciling Adjustments			AEPTCo Consolidated
	(in millions)
Total Assets	$	17,222.2	$	6,396.4	(d)	$	(6,410.0)	(e)	$	17,208.6

	December 31, 2024
	State Transcos		AEPTCo Parent			Reconciling Adjustments			AEPTCo Consolidated
	(in millions)
Total Assets	$	16,887.7	$	8,670.4	(d)	$	(9,187.8)	(e)	$	16,370.3

(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.