FINANCING ACTIVITIES

9 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

FINANCING ACTIVITIES

FINANCING ACTIVITIES

The disclosures in this note apply to all Registrants, unless indicated otherwise.

Common Stock (Applies to AEP)

At-the-Market (ATM) Program

In 2024, approximately $0.4 billion of common stock was offered and sold under the ATM program. There were no issuances under the ATM program for the nine months ended September 30, 2025. Approximately $1.3 billion of equity is available for issuance under the ATM program upon the filing of a prospectus supplement.

Forward Sale of Equity

In March 2025, AEP entered into separate forward sale agreements with non-affiliate forward purchasers relating to 22,549,020 shares of AEP’s common stock at an initial price of $102.00 per share, exclusive of an underwriting discount equal to $2.244 per share. Except in certain specified circumstances that would require physical share settlement, AEP may elect to settle the forward sale transaction by means of physical, cash or net share settlement. The timing of the settlement of the forward sale agreements is also at AEP’s discretion and management currently expects settlement to occur on or prior to December 31, 2026. To the extent the forward sale agreements are physically settled, AEP will issue common stock to the forward purchasers and receive cash proceeds based on the applicable forward sale price on the settlement date as defined in the forward sale agreements. As of September 30, 2025, AEP expects approximately $2.25 billion of net cash proceeds from the full physical settlement of the forward sale agreements and management anticipates using any future proceeds for general corporate purposes, which may include capital contributions to utility subsidiaries, acquisitions or repayment of debt. The forward sale transactions will be classified as equity transactions because they are indexed to AEP’s common stock and physical settlement is within AEP’s control.

Long-term Debt Outstanding (Applies to AEP)

The following table details long-term debt outstanding, net of issuance costs and premiums or discounts:

Type of Debt	September 30, 2025		December 31, 2024
	(in millions)
Senior Unsecured Notes	$	37,865.2	$	36,410.9
Pollution Control Bonds	1,685.7		1,771.3
Notes Payable	614.8		609.9
Securitization Bonds	983.3		578.0
Spent Nuclear Fuel Obligation (a)	326.7		316.3
Junior Subordinated Notes	3,707.9		2,579.1
Other Long-term Debt	954.0		377.3
Total Long-term Debt Outstanding	46,137.6		42,642.8
Long-term Debt Due Within One Year	1,898.6		3,335.0
Long-term Debt	$	44,239.0	$	39,307.8

(a)Pursuant to the Nuclear Waste Policy Act of 1982, I&M, a nuclear licensee, has an obligation to the United States Department of Energy for SNF disposal. The obligation includes a one-time fee for nuclear fuel consumed prior to April 7, 1983. Trust fund assets related to this obligation were $381 million and $367 million as of September 30, 2025 and December 31, 2024, respectively, and are included in Spent Nuclear Fuel and Decommissioning Trusts on the balance sheets.

Long-term Debt Activity

Long-term debt and other securities issued, retired and principal payments made during the first nine months of 2025 are shown in the following tables:

		Principal		Interest
Company	Type of Debt	Amount (a)		Rate	Due Date
Issuances:		(in millions)		(%)
AEP	Junior Subordinated Notes	$	1,100.0	5.80	2056
AEP	Junior Subordinated Notes	900.0		6.05	2056
AEP Texas	Other Long-term Debt	400.0		Variable	2026
AEP Texas	Senior Unsecured Notes	150.0		5.70	2034
AEP Texas	Senior Unsecured Notes	750.0		5.85	2055
AEPTCo	Other Long-term Debt	141.0		Variable	2028
AEPTCo	Senior Unsecured Notes	425.0		5.38	2035
APCo	Other Long-term Debt	425.0		Variable	2026
APCo	Pollution Control Bonds	104.4		3.70	2028
APCo	Pollution Control Bonds	65.3		3.30	2028
I&M	Notes Payable	100.0		4.89	2029
I&M	Pollution Control Bonds	150.0		3.70	2029
PSO	Senior Unsecured Notes	800.0		5.45	2036
Non-Registrant:
KPCo	Other Long-term Debt	150.0		Variable	2026
KPCo	Securitization Bonds	477.7		5.30	2045
Transource Energy	Other Long-term Debt	36.6		Variable	2025
WPCo	Other Long-term Debt	125.0		Variable	2026
Total Issuances		$	6,300.0

(a)Amounts indicated on the statements of cash flows are net of issuance costs and premium or discount and will not tie to the issuance amounts.

		Principal		Interest
Company	Type of Debt	Amount Paid		Rate	Due Date
Retirements and Principal Payments:		(in millions)		(%)
AEP	Junior Subordinated Notes	$	850.0	5.70	2025
AEP Texas	Other Long-term Debt	400.0		Variable	2026
AEP Texas	Securitization Bonds	10.3		2.06	2025
AEP Texas	Securitization Bonds	14.2		2.29	2029
AEP Texas	Senior Unsecured Notes	50.0		3.75	2025
AEPTCo	Senior Unsecured Notes	50.0		3.66	2025
AEPTCo	Senior Unsecured Notes	40.0		3.76	2025
APCo	Other Long-term Debt	0.1		13.72	2026
APCo	Pollution Control Bonds	104.4		3.75	2025
APCo	Pollution Control Bonds	65.4		1.00	2025
APCo	Securitization Bonds	28.4		3.77	2028
APCo	Senior Unsecured Notes	300.0		3.40	2025
I&M	Notes Payable	3.9		0.93	2025
I&M	Notes Payable	1.1		Variable	2025
I&M	Notes Payable	8.4		3.44	2026
I&M	Notes Payable	13.2		5.93	2027
I&M	Notes Payable	24.6		6.41	2028
I&M	Notes Payable	15.4		6.01	2028
I&M	Notes Payable	13.1		4.89	2029
I&M	Other Long-term Debt	0.2		6.00	2025
I&M	Pollution Control Bonds	100.0		3.05	2025
I&M	Pollution Control Bonds	50.0		2.75	2025
I&M	Pollution Control Bonds	40.0		0.75	2025
PSO	Other Long-term Debt	0.4		3.00	2027
PSO	Senior Unsecured Notes	125.0		3.17	2025
SWEPCo	Securitization Bonds	11.1		4.88	2039
Non-Registrant:
AEGCo	Pollution Control Bonds	45.0		1.35	2025
KPCo	Other Long-term Debt	150.0		Variable	2025
KPCo	Other Long-term Debt	150.0		Variable	2026
Transource Energy	Senior Unsecured Notes	2.6		2.75	2050
WPCo	Notes Payable	15.0		6.89	2034
WPCo	Senior Unsecured Notes	122.0		3.70	2025
Total Retirements and Principal Payments		$	2,803.8

Long-term Debt Subsequent Events

In October 2025, I&M issued $103 million of variable rate Notes Payable due in 2030.

In October 2025, I&M retired $8 million of Notes Payable related to DCC Fuel.

In October 2025, Transource Energy issued $4 million of variable rate Other Long-term Debt due in 2028.

Debt Covenants (Applies to AEP and AEPTCo)

Covenants in AEPTCo’s note purchase agreements and indenture limit the amount of contractually-defined priority debt (which includes a further sub-limit of $50 million of secured debt) to 10% of consolidated tangible net assets. AEPTCo’s contractually-defined priority debt was 0.7% of consolidated tangible net assets as of September 30, 2025. The method for calculating the consolidated tangible net assets is contractually-defined in the note purchase agreements.

Dividend Restrictions

Utility Subsidiaries’ Restrictions

Parent depends on its utility subsidiaries to pay dividends to shareholders. AEP utility subsidiaries pay dividends to Parent provided funds are legally available. Various financing arrangements and regulatory requirements may impose certain restrictions on the ability of the subsidiaries to transfer funds to Parent in the form of dividends.

All of the dividends declared by AEP’s utility subsidiaries that provide transmission or local distribution services are subject to a Federal Power Act requirement that prohibits the payment of dividends out of capital accounts in certain circumstances; payment of dividends is generally allowed out of retained earnings. The Federal Power Act also creates a reserve on earnings attributable to hydroelectric generation plants. Because of their ownership of such plants, this reserve applies to APCo and I&M.

Certain AEP subsidiaries have credit agreements that contain covenants that limit their debt to capitalization ratio to 67.5%. The method for calculating outstanding debt and capitalization is contractually-defined in the credit agreements.

The Federal Power Act restriction does not limit the ability of the AEP subsidiaries to pay dividends out of retained earnings.

Parent Restrictions (Applies to AEP)

The holders of AEP’s common stock are entitled to receive the dividends declared by the AEP Board provided funds are legally available for such dividends. Parent’s income primarily derives from common stock equity in the earnings of its utility subsidiaries.

Pursuant to the leverage restrictions in credit agreements, AEP must maintain a percentage of debt to total capitalization at a level that does not exceed 67.5%. The method for calculating outstanding debt and capitalization is contractually-defined in the credit agreements.

Corporate Borrowing Program (Applies to all Registrant Subsidiaries)

AEP subsidiaries use a corporate borrowing program to meet their short-term borrowing needs. The corporate borrowing program includes a Utility Money Pool, which funds AEP’s utility subsidiaries; a Nonutility Money Pool, which funds certain AEP nonutility subsidiaries; and direct borrowing from AEP. The AEP Utility Money Pool operates in accordance with the terms and conditions of its agreement filed with the FERC. The amounts of outstanding loans to (borrowings from) the Utility Money Pool as of September 30, 2025 and December 31, 2024 are included in Advances to Affiliates and Advances from Affiliates, respectively, on the Registrant Subsidiaries’ balance sheets. The Utility Money Pool participants’ money pool activity and corresponding authorized borrowing limits for the nine months ended September 30, 2025 are described in the following table:

	Maximum				Average				Net Loans to
	Borrowings		Maximum		Borrowings		Average		(Borrowings from)		Authorized
	from the		Loans to the		from the		Loans to the		the Utility Money		Short-term
	Utility		Utility		Utility		Utility		Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		September 30, 2025		Limit
	(in millions)
AEP Texas	$	468.4	$	485.7	$	172.6	$	82.5	$	418.1	$	600.0
AEPTCo	403.6		312.2		174.8		44.2		(89.3)		820.0		(a)
APCo	263.5		242.1		127.8		26.1		49.6		750.0
I&M	145.2		157.2		71.4		46.2		157.2		500.0
OPCo	270.9		165.9		126.0		81.7		(13.0)		600.0
PSO	505.1		391.5		221.2		166.1		(39.7)		750.0
SWEPCo	471.9		269.7		285.9		88.7		269.7		750.0

(a)    Amount represents the combined authorized short-term borrowing limit the State Transcos have from FERC or state regulatory commissions.

The activity in the above table does not include short-term lending activity of certain AEP nonutility subsidiaries. AEP Texas’ wholly-owned subsidiary, AEP Texas North Generation Company, LLC and SWEPCo’s wholly-owned subsidiary, Mutual Energy SWEPCo, LLC participate in the Nonutility Money Pool. The amounts of outstanding loans to the Nonutility Money Pool as of September 30, 2025 and December 31, 2024 are included in Advances to Affiliates on the subsidiaries’ balance sheets. The Nonutility Money Pool participants’ activity for the nine months ended September 30, 2025 is described in the following table:

		Maximum Loans		Average Loans		Loans to the Nonutility
		to the Nonutility		to the Nonutility		Money Pool as of
Company		Money Pool		Money Pool		September 30, 2025
	(in millions)
AEP Texas		$	7.2	$	7.1	$	7.2
SWEPCo		2.4		2.1		—

AEP has a direct financing relationship with AEPTCo to meet its short-term borrowing needs. The amounts of outstanding loans to (borrowings from) AEP as of September 30, 2025 and December 31, 2024 are included in Advances to Affiliates and Advances from Affiliates, respectively, on AEPTCo’s balance sheets. AEPTCo’s direct financing activities with AEP and corresponding authorized borrowing limit for the nine months ended September 30, 2025 are described in the following table:

									Borrowings				Authorized
	Maximum		Maximum		Average		Average		from AEP		Loans to		Short-term
	Borrowings		Loans		Borrowings		Loans		as of		AEP as of		Borrowing
Company	from AEP		to AEP		from AEP		to AEP		September 30, 2025		September 30, 2025		Limit (a)
	(in millions)
AEPTCo Parent	$	106.6	$	132.6	$	17.7	$	45.3	$	—	$	49.7	$	—
SWTCo	2.0		—		1.9		—		2.0		—		50.0
Midwest Transmission Holdings	—		34.1		—		6.1		—		0.3		—

(a)    Amount represents the authorized short-term borrowing limit from FERC or state regulatory agencies not otherwise included in the utility money pool above.

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool are summarized in the following table:

	Nine Months Ended September 30,
	2025		2024
Maximum Interest Rate	4.83	%	5.79	%
Minimum Interest Rate	4.00	%	5.14	%

The average interest rates for funds borrowed from and loaned to the Utility Money Pool are summarized in the following table:

	Average Interest Rate for Funds				Average Interest Rate for Funds
	Borrowed from the Utility Money Pool				Loaned to the Utility Money Pool
	for Nine Months Ended September 30,				for Nine Months Ended September 30,
Company	2025		2024		2025		2024
AEP Texas	4.67	%	5.69	%	4.37	%	5.48	%
AEPTCo	4.65	%	5.68	%	4.62	%	5.58	%
APCo	4.67	%	5.72	%	4.58	%	5.51	%
I&M	4.69	%	5.64	%	4.50	%	5.44	%
OPCo	4.61	%	5.70	%	4.70	%	5.49	%
PSO	4.64	%	5.59	%	4.68	%	—	%
SWEPCo	4.69	%	5.58	%	4.55	%	—	%

Maximum, minimum and average interest rates for funds loaned to the Nonutility Money Pool are summarized in the following table:

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

Maximum

Minimum

Average

Maximum

Minimum

Average

Interest Rate

Interest Rate

Interest Rate

Interest Rate

Interest Rate

Interest Rate

for Funds

for Funds

for Funds

for Funds

for Funds

for Funds

Loaned to

Loaned to

Loaned to

Loaned to

Loaned to

Loaned to

the Nonutility

the Nonutility

the Nonutility

the Nonutility

the Nonutility

the Nonutility

Company

Money Pool

Money Pool

Money Pool

Money Pool

Money Pool

Money Pool

AEP Texas

4.76

%

4.27

%

4.66

%

5.79

%

5.25

%

5.64

%

SWEPCo

4.76

%

4.62

%

4.69

%

5.79

%

5.25

%

5.64

%

AEPTCo’s maximum, minimum and average interest rates for funds either borrowed from or loaned to AEP are summarized in the following table:

	Maximum		Minimum		Maximum		Minimum		Average		Average
	Interest Rate		Interest Rate		Interest Rate		Interest Rate		Interest Rate		Interest Rate
Nine Months	for Funds		for Funds		for Funds		for Funds		for Funds		for Funds
Ended	Borrowed		Borrowed		Loaned		Loaned		Borrowed		Loaned
September 30,	from AEP		from AEP		to AEP		to AEP		from AEP		to AEP
2025	4.76	%	4.27	%	4.76	%	4.27	%	4.64	%	4.64	%
2024	5.79	%	5.25	%	5.79	%	5.25	%	5.66	%	5.63	%

Short-term Debt (Applies to AEP and SWEPCo)

Outstanding short-term debt was as follows:

		September 30, 2025				December 31, 2024
		Outstanding		Interest		Outstanding		Interest
Company	Type of Debt	Amount		Rate (a)		Amount		Rate (a)
		(dollars in millions)
AEP	Securitized Debt for Receivables (b)	$	900.0	4.56	%	$	900.0	4.73	%
AEP	Commercial Paper	250.0		4.30	%	1,618.3		4.70	%
SWEPCo	Notes Payable	7.7		6.50	%	5.5		6.69	%
	Total Short-term Debt	$	1,157.7			$	2,523.8

(a)Weighted-average rate as of September 30, 2025 and December 31, 2024, respectively.

(b)Amount of securitized debt for receivables as accounted for under the “Transfers and Servicing” accounting guidance.

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 5.

Securitized Accounts Receivables – AEP Credit (Applies to AEP)

AEP Credit has a receivables securitization agreement with bank conduits. Under the securitization agreement, AEP Credit receives financing from the bank conduits for the interest in the receivables AEP Credit acquires from affiliated utility subsidiaries. These securitized transactions allow AEP Credit to repay its outstanding debt obligations, continue to purchase the operating companies’ receivables and accelerate AEP Credit’s cash collections.

AEP Credit’s receivables securitization agreement provides a commitment of $900 million from bank conduits to purchase receivables and expires in September 2027. As of September 30, 2025, the affiliated utility subsidiaries were in compliance with all requirements under the agreement.

Accounts receivable information for AEP Credit was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
	(dollars in millions)
Effective Interest Rates on Securitization of Accounts Receivable	4.52		%	5.50		%	4.56		%	5.54		%
Net Uncollectible Accounts Receivable Written-Off	$	10.8		$	8.4		$	24.7		$	22.3

	September 30, 2025		December 31, 2024
	(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral Less Uncollectible Accounts	$	1,292.8	$	1,117.0
Short-term – Securitized Debt of Receivables	900.0		900.0
Delinquent Securitized Accounts Receivable	79.4		56.2
Bad Debt Reserves Related to Securitization	43.4		44.5
Unbilled Receivables Related to Securitization	319.4		335.5

AEP Credit’s delinquent customer accounts receivable represent accounts greater than 30 days past due.

Securitized Accounts Receivables – AEP Credit (Applies to all Registrant Subsidiaries except AEP Texas and AEPTCo)

Under this sale of receivables arrangement, the Registrant Subsidiaries sell, without recourse, certain of their customer accounts receivable and accrued unbilled revenue balances to AEP Credit and are charged a fee based on AEP Credit’s financing costs, administrative costs and uncollectible accounts experience for each Registrant Subsidiary’s receivables. APCo does not have regulatory authority to sell its West Virginia accounts receivable. The costs of customer accounts receivable sold are reported in Other Operation expense on the Registrant Subsidiaries’ statements of income. The Registrant Subsidiaries manage and service their customer accounts receivable, which are sold to AEP Credit. AEP Credit securitizes the eligible receivables for the operating companies and retains the remainder.

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreements were:

Company	September 30, 2025		December 31, 2024
	(in millions)
APCo	$	183.0	$	192.7
I&M	185.0		160.5
OPCo	490.9		470.7
PSO	202.5		111.4
SWEPCo	200.3		153.5

The fees paid to AEP Credit for customer accounts receivable sold were:

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2025		2024		2025		2024
	(in millions)
APCo	$	3.7	$	4.0	$	10.9	$	12.1
I&M	4.2		4.1		11.2		12.0
OPCo	7.4		7.5		22.3		22.3
PSO	4.0		4.1		9.7		10.9
SWEPCo	4.1		4.4		11.9		13.5

The proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2025		2024		2025		2024
	(in millions)
APCo	$	495.4	$	504.6	$	1,530.0	$	1,487.9
I&M	682.6		576.7		1,812.7		1,608.5
OPCo	927.8		860.0		2,523.3		2,477.2
PSO	659.6		611.5		1,466.3		1,398.1
SWEPCo	549.9		531.4		1,434.0		1,428.7