AMERICAN ELECTRIC POWER CO INCAEP
AMERICAN ELECTRIC POWER CO INC Segments Disclosure
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.
| VIU | T&D | AEPTHCo | G&M | Total Reportable Segments | Corporate and Other (a) | Reconciling Adjustments | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
| 2025 | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues from: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| External Customers | $ | 12,556 | $ | 6,097 | $ | 493 | $ | 2,697 | $ | 21,843 | $ | 33 | $ | — | $ | 21,876 | ||||||||||||||||||||||||||||||||||
| Other Operating Segments | 263 | 50 | 1,884 | 65 | 2,262 | 111 | (2,373) | (b) | — | |||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 12,819 | 6,147 | 2,377 | 2,762 | 24,105 | 144 | (2,373) | 21,876 | ||||||||||||||||||||||||||||||||||||||||||
| Purchased Electricity, Fuel and Other Consumables Used for Electric Generation | 4,056 | 943 | — | 2,325 | 7,324 | — | (293) | 7,031 | ||||||||||||||||||||||||||||||||||||||||||
| Other Operation and Maintenance | 3,884 | 2,318 | 194 | 83 | 6,479 | 74 | (2,104) | 4,449 | ||||||||||||||||||||||||||||||||||||||||||
| Asset Impairments and Other Related Charges | 35 | 31 | — | — | 66 | — | — | 66 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 2,076 | 821 | 487 | 16 | 3,400 | (20) | — | 3,380 | ||||||||||||||||||||||||||||||||||||||||||
| Taxes Other Than Income Taxes | 532 | 744 | 328 | 2 | 1,606 | 1 | 24 | 1,631 | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for Equity Funds Used During Construction | 74 | 77 | 94 | — | 245 | — | — | 245 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 856 | 424 | 241 | 8 | 1,529 | 592 | (95) | 2,026 | ||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | (60) | 173 | 42 | 95 | 250 | (121) | — | 129 | ||||||||||||||||||||||||||||||||||||||||||
| Equity Earnings of Unconsolidated Subsidiaries | 1 | 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 | ||||||||||||||||||||||||||||||||||
| VIU | T&D | AEPTHCo | G&M | Total Reportable Segments | Corporate and Other (a) | Reconciling Adjustments | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
| 2024 | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues from: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| External Customers | $ | 11,414 | $ | 5,880 | $ | 425 | $ | 1,945 | $ | 19,664 | $ | 57 | $ | — | $ | 19,721 | ||||||||||||||||||||||||||||||||||
| Other Operating Segments | 183 | 28 | 1,526 | 100 | 1,837 | 126 | (1,963) | (b) | — | |||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 11,597 | 5,908 | 1,951 | 2,045 | 21,501 | 183 | (1,963) | 19,721 | ||||||||||||||||||||||||||||||||||||||||||
| Purchased Electricity, Fuel and Other Consumables Used for Electric Generation | 3,796 | 909 | — | 1,542 | 6,247 | — | (311) | 5,936 | ||||||||||||||||||||||||||||||||||||||||||
| Other Operation and Maintenance | 3,528 | 2,166 | 163 | 130 | 5,987 | 137 | (1,672) | 4,452 | ||||||||||||||||||||||||||||||||||||||||||
| Asset Impairments and Other Related Charges | 14 | 53 | — | 76 | 143 | — | — | 143 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 1,971 | 880 | 440 | 21 | 3,312 | (22) | — | 3,290 | ||||||||||||||||||||||||||||||||||||||||||
| Taxes Other Than Income Taxes | 535 | 724 | 315 | 2 | 1,576 | — | 20 | 1,596 | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for Equity Funds Used During Construction | 52 | 69 | 90 | — | 211 | — | — | 211 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 724 | 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 Subsidiaries | 1 | (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 | ||||||||||||||||||||||||||||||||||
| VIU | T&D | AEPTHCo | G&M | Total Reportable Segments | Corporate and Other (a) | Reconciling Adjustments | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
| 2023 | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues from: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| External Customers | $ | 11,304 | $ | 5,677 | $ | 397 | $ | 1,543 | $ | 18,921 | $ | 61 | $ | — | $ | 18,982 | ||||||||||||||||||||||||||||||||||
| Other Operating Segments | 146 | 36 | 1,332 | 89 | 1,603 | 107 | (1,710) | (b) | — | |||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 11,450 | 5,713 | 1,729 | 1,632 | 20,524 | 168 | (1,710) | 18,982 | ||||||||||||||||||||||||||||||||||||||||||
| Purchased Electricity, Fuel and Other Consumables Used for Electric Generation | 4,150 | 1,215 | — | 1,488 | 6,853 | — | (275) | 6,578 | ||||||||||||||||||||||||||||||||||||||||||
| Other Operation and Maintenance | 3,211 | 1,948 | 142 | 133 | 5,434 | 103 | (1,450) | 4,087 | ||||||||||||||||||||||||||||||||||||||||||
| Asset Impairments and Other Related Charges | 86 | — | — | — | 86 | — | — | 86 | ||||||||||||||||||||||||||||||||||||||||||
| Loss on the Sale of the Competitive Contracted Renewables Portfolio | — | — | — | 93 | 93 | — | — | 93 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 1,876 | 785 | 403 | 43 | 3,107 | (17) | — | 3,090 | ||||||||||||||||||||||||||||||||||||||||||
| Taxes Other Than Income Taxes | 513 | 668 | 290 | 6 | 1,477 | — | 15 | 1,492 | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for Equity Funds Used During Construction | 46 | 46 | 83 | — | 175 | — | — | 175 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 765 | 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 Subsidiaries | 1 | — | 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 Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||||||||||
| 2025 | (in millions) | ||||||||||||||||||||||
| Revenues from: | |||||||||||||||||||||||
External Customers | $ | 450 | $ | — | $ | — | $ | 450 | |||||||||||||||
Sales to AEP Affiliates | 1,869 | — | — | 1,869 | |||||||||||||||||||
| Total Revenues | 2,319 | — | — | 2,319 | |||||||||||||||||||
| Other Operation and Maintenance | 185 | — | — | 185 | |||||||||||||||||||
Depreciation and Amortization | 478 | — | — | 478 | |||||||||||||||||||
| Taxes Other Than Income Taxes | 321 | — | — | 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 Expense | 4 | 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 Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||||||||||
| 2024 | (in millions) | ||||||||||||||||||||||
| Revenues from: | |||||||||||||||||||||||
External Customers | $ | 379 | $ | — | $ | — | $ | 379 | |||||||||||||||
Sales to AEP Affiliates | 1,512 | — | — | 1,512 | |||||||||||||||||||
| Total Revenues | 1,891 | — | — | 1,891 | |||||||||||||||||||
| Other Operation and Maintenance | 156 | 2 | — | 158 | |||||||||||||||||||
Depreciation and Amortization | 431 | — | — | 431 | |||||||||||||||||||
| Taxes Other Than Income Taxes | 309 | — | — | 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 Expense | 190 | — | — | 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 Transcos | AEPTCo Parent | Reconciling Adjustments | AEPTCo Consolidated | ||||||||||||||||||||
| 2023 | (in millions) | ||||||||||||||||||||||
| Revenues from: | |||||||||||||||||||||||
External Customers | $ | 354 | $ | — | $ | — | $ | 354 | |||||||||||||||
Sales to AEP Affiliates | 1,317 | — | — | 1,317 | |||||||||||||||||||
| Total Revenues | 1,671 | — | — | 1,671 | |||||||||||||||||||
| Other Operation and Maintenance | 129 | — | — | 129 | |||||||||||||||||||
Depreciation and Amortization | 394 | — | — | 394 | |||||||||||||||||||
| Taxes Other Than Income Taxes | 283 | — | — | 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 Expense | 145 | 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.
Free Sentinel
Track for freeWant the next AMERICAN ELECTRIC POWER CO INC segments disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment AMERICAN ELECTRIC POWER CO INC's next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.