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STOCK-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of Share-Based Payment Arrangement, Activity
The HR Committee awarded performance shares and reinvested dividends on outstanding performance shares and AEP career shares as follows:
Years Ended December 31,
Performance Shares202520242023
Awarded Shares (in thousands)498 441 487 
Weighted-Average Share Fair Value at Grant Date$123.42 $99.76 $98.63 
Vesting Period (in years)333
Performance Shares and AEP Career Shares
(Reinvested Dividends Portion)
Years Ended December 31,
202520242023
Awarded Shares (in thousands)53 66 81 
Weighted-Average Fair Value at Grant Date$107.71 $91.75 $82.02 
Vesting Period (in years)(a)(a)(a)

(a)The vesting period for the reinvested dividends on performance shares is equal to the remaining life of the related performance shares.  Dividends on AEP career shares vest immediately when the dividend is awarded but are not settled in AEP common stock until after the participant’s AEP employment ends.
The performance scores and shares earned for the three-year periods were as follows:
Years Ended December 31,
Performance Shares2025 (b)20242023
Performance Score137.1 %109.8 %106.1 %
Performance Shares Earned477,932 477,487 540,863 
Performance Shares Mandatorily Deferred as AEP Career Shares12,337 39,172 70,377 
Performance Shares Voluntarily Deferred into the Incentive Compensation Deferral Program19,503 21,245 22,716 
Performance Shares to be Settled (a)446,092 417,070 447,770 

(a)Performance shares settled in AEP common stock in the quarter following the end of the year shown.
(b)Performance shares earned, deferred and settled were calculated based on the estimated performance score.

The settlements were as follows:
Years Ended December 31,
Performance Shares and AEP Career Shares202520242023
(in millions)
AEP Common Stock Settlements for Performance Shares$45 $38 $42 
AEP Common Stock Settlements for Career Share Distributions13 
The HR Committee awarded RSUs, including additional units awarded as dividends, and unrestricted shares as follows:
Years Ended December 31,
RSUs and Unrestricted Shares202520242023
Awarded RSUs and Granted Unrestricted Shares (in thousands)440 417 268 
Weighted-Average Grant Date Fair Value$105.04 $87.85 $88.52 

The total fair value and total intrinsic value of RSUs vested and unrestricted shares granted were as follows:
Years Ended December 31,
RSUs and Unrestricted Shares202520242023
(in millions)
Fair Value of RSUs Vested and Unrestricted Shares Granted$22 $26 $19 
Intrinsic Value of RSUs Vested and Unrestricted Shares Granted (a)26 27 19 

(a)Intrinsic value is calculated as market price at the vesting date or, for unrestricted shares, the grant date.
The Board of Directors awarded stock units, including units awarded for dividends, as follows:
Years Ended December 31,
Stock Unit Accumulation Plan for Non-Employee Directors202520242023
Awarded Units (in thousands)16 19 20 
Weighted-Average Grant Date Fair Value$109.25 $91.42 $82.14 
Schedule of Share-Based Payment Arrangement, Outstanding Award, Activity, Excluding Option
A summary of the status of AEP’s nonvested Performance Shares as of December 31, 2025 and changes during the year ended December 31, 2025 were as follows:
Nonvested Performance SharesSharesWeighted Average
Grant Date Fair Value
(in thousands)
Nonvested as of January 1, 2025778 $100.97 
Awarded498 123.42 
Dividends41 107.80 
Vested (a)(353)100.41 
Forfeited(157)106.44 
Nonvested as of December 31, 2025807 114.36 

(a)The vested Performance Shares will be converted to an estimated 446 thousand shares based on the closing share price on the day before settlement.
Schedule of Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Valuation Assumptions The assumptions used in the Monte Carlo valuations were as follows:
Years Ended December 31,
Assumptions202520242023
Valuation Period (in years) (a)2.862.852.87
Expected Volatility Minimum18.86 %18.79 %21.23 %
Expected Volatility Maximum46.96 %33.29 %39.00 %
Expected Volatility Average23.26 %22.34 %25.35 %
Dividend Rate (b)— %— %— %
Risk Free Rate4.28 %4.43 %4.32 %

(a)Period from award date to vesting date.
(b)Equivalent to reinvesting dividends.
Schedule of Share-Based Payment Arrangement, Restricted Stock Unit, Activity
A summary of the status of AEP’s nonvested RSUs as of December 31, 2025 and changes during the year ended December 31, 2025 were as follows:
Nonvested RSUsShares/UnitsWeighted Average
Grant Date Fair Value
(in thousands)
Nonvested as of January 1, 2025477 $88.37 
Awarded, Including Unrestricted Shares440 105.04 
Vested, Including Unrestricted Shares(243)89.63 
Forfeited(76)90.10 
Nonvested as of December 31, 2025598 100.13 
Schedule of Share-Based Payment Arrangement, Cost by Plan
The compensation cost for share-based payment arrangements, the actual tax benefit from the tax deductions for compensation cost recognized in income and the total compensation cost capitalized were as follows:
Years Ended December 31,
Share-based Compensation Plans202520242023
(in millions)
Compensation Cost for Share-based Payment Arrangements (a)$53 $53 $51 
Actual Tax Benefit
Total Compensation Cost Capitalized17 14 15 

(a)Compensation cost for share-based payment arrangements is included in Other Operation and Maintenance expenses on the statements of income.