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Business Segments | 6 Months Ended
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Jun. 30, 2024
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. Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements. 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 •Contracted energy management services. •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. AEP’s CODM makes operating decisions, allocates resources to and assesses performance based on these operating segments. AEP measures segment profit or loss based on net income (loss). Net income (loss) includes intercompany revenues and expenses that are eliminated on the Consolidated Financial Statements. In addition, direct interest expense and income taxes are included in net income (loss). The tables below represent AEP’s reportable segment income statement information for the three and six months ended June 30, 2024 and 2023 and reportable segment balance sheet information as of June 30, 2024 and December 31, 2023.
| Three Months Ended June 30, 2024
| Vertically Integrated Utilities |  | Transmission and Distribution Utilities |  | AEP Transmission Holdco |  | Generation & Marketing |  | Corporate and Other (a) |  | Reconciling Adjustments |  | Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |  |  |  |  |  |  |
External Customers | $ | 2,572.0 |  |  | $ | 1,428.8 |  |  | $ | 108.7 |  |  | $ | 442.5 |  |  | $ | 27.2 |  |  | $ | — |  |  | $ | 4,579.2 |
Other Operating Segments | 47.0 |  |  | 7.1 |  |  | 381.2 |  |  | 25.0 |  |  | 30.5 |  |  | (490.8) |  | (b) | — |
Total Revenues | $ | 2,619.0 |  |  | $ | 1,435.9 |  |  | $ | 489.9 |  |  | $ | 467.5 |  |  | $ | 57.7 |  |  | $ | (490.8) |  |  | $ | 4,579.2 |
Net Income (Loss) | $ | 66.7 |  |  | $ | 146.8 |  |  | $ | 201.9 |  |  | $ | (4.8) |  |  | $ | (68.1) |  |  | $ | — |  |  | $ | 342.5 |
| Three Months Ended June 30, 2023
| Vertically Integrated Utilities |  | Transmission and Distribution Utilities |  | AEP Transmission Holdco |  | Generation & Marketing |  | Corporate and Other (a) |  | Reconciling Adjustments |  | Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |  |  |  |  |  |  |
External Customers | $ | 2,629.0 |  |  | $ | 1,330.8 |  |  | $ | 88.3 |  |  | $ | 318.2 |  |  | $ | 6.2 |  |  | $ | — |  |  | $ | 4,372.5 |
Other Operating Segments | 45.5 |  |  | 9.4 |  |  | 370.3 |  |  | 13.2 |  |  | 25.8 |  |  | (464.2) |  | (b) | — |
Total Revenues | $ | 2,674.5 |  |  | $ | 1,340.2 |  |  | $ | 458.6 |  |  | $ | 331.4 |  |  | $ | 32.0 |  |  | $ | (464.2) |  |  | $ | 4,372.5 |
Net Income (Loss) | $ | 278.4 |  |  | $ | 176.7 |  |  | $ | 197.3 |  |  | $ | (38.6) |  |  | $ | (97.7) |  |  | $ | — |  |  | $ | 516.1 |
| Six Months Ended June 30, 2024
| Vertically Integrated Utilities |  | Transmission and Distribution Utilities |  | AEP Transmission Holdco |  | Generation & Marketing |  | Corporate and Other (a) |  | Reconciling Adjustments |  | Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |  |  |  |  |  |  |
External Customers | $ | 5,473.2 |  |  | $ | 2,912.0 |  |  | $ | 219.2 |  |  | $ | 958.4 |  |  | $ | 42.1 |  |  | $ | — |  |  | $ | 9,604.9 |
Other Operating Segments | 93.7 |  |  | 14.1 |  |  | 768.0 |  |  | 72.6 |  |  | 68.4 |  |  | (1,016.8) |  | (b) | — |
Total Revenues | $ | 5,566.9 |  |  | $ | 2,926.1 |  |  | $ | 987.2 |  |  | $ | 1,031.0 |  |  | $ | 110.5 |  |  | $ | (1,016.8) |  |  | $ | 9,604.9 |
Net Income (Loss) | $ | 629.0 |  |  | $ | 297.1 |  |  | $ | 411.7 |  |  | $ | 132.8 |  |  | $ | (122.4) |  |  | $ | — |  |  | $ | 1,348.2 |
| Six Months Ended June 30, 2023
| Vertically Integrated Utilities |  | Transmission and Distribution Utilities |  | AEP Transmission Holdco |  | Generation & Marketing |  | Corporate and Other (a) |  | Reconciling Adjustments |  | Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |  |  |  |  |  |  |
External Customers | $ | 5,445.3 |  |  | $ | 2,786.1 |  |  | $ | 178.4 |  |  | $ | 645.1 |  |  | $ | 8.5 |  |  | $ | — |  |  | $ | 9,063.4 |
Other Operating Segments | 87.0 |  |  | 18.3 |  |  | 735.7 |  |  | 13.3 |  |  | 53.6 |  |  | (907.9) |  | (b) | — |
Total Revenues | $ | 5,532.3 |  |  | $ | 2,804.4 |  |  | $ | 914.1 |  |  | $ | 658.4 |  |  | $ | 62.1 |  |  | $ | (907.9) |  |  | $ | 9,063.4 |
Net Income (Loss) | $ | 540.6 |  |  | $ | 302.4 |  |  | $ | 379.7 |  |  | $ | (195.0) |  |  | $ | (111.2) |  |  | $ | — |  |  | $ | 916.5 |
|  | June 30, 2024
|  | Vertically Integrated Utilities |  | Transmission and Distribution Utilities |  | AEP Transmission Holdco |  | Generation & Marketing |  | Corporate and Other (a) |  | Reconciling Adjustments |  | Consolidated
|  | (in millions)
Total Assets (c) |  | $ | 53,576.1 |  |  | $ | 25,969.4 |  |  | $ | 17,358.2 |  |  | $ | 2,263.7 |  |  | $ | 4,578.1 |  | (d) | $ | (4,122.9) |  | (e) | $ | 99,622.6 |
|  | December 31, 2023
|  | Vertically Integrated Utilities |  | Transmission and Distribution Utilities |  | AEP Transmission Holdco |  | Generation & Marketing |  | Corporate and Other (a) |  | Reconciling Adjustments |  | Consolidated
|  | (in millions)
Total Assets |  | $ | 51,802.1 |  |  | $ | 24,838.4 |  |  | $ | 16,575.6 |  |  | $ | 2,598.5 |  |  | $ | 5,194.0 |  | (d) | $ | (4,324.6) |  | (e) | $ | 96,684.0 |
(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, interest expense and other nonallocated costs. (b)Represents inter-segment revenues. (c)Amount includes Assets Held for Sale on the balance sheet. See “Planned Disposition of AEP OnSite Partners” section of Note 6 for additional information. (d)Includes elimination of 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. 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 rate-making purposes exclusively by the FERC and earn revenues through tariff rates charged for the use of their electric transmission systems. AEPTCo’s CODM makes operating decisions, allocates resources to and assesses performance based on these operating segments. 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 operating 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 six months ended June 30, 2024 and 2023 and reportable segment balance sheet information as of June 30, 2024 and December 31, 2023.
| Three Months Ended June 30, 2024
| State Transcos |  | AEPTCo Parent |  | Reconciling Adjustments |  | AEPTCo Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |
External Customers | $ | 97.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 97.0 |
Sales to AEP Affiliates | 377.8 |  |  | — |  |  | — |  |  | 377.8 |
Other Revenues | 0.4 |  |  | — |  |  | — |  |  | 0.4 |
Total Revenues | $ | 475.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 475.2 |
Net Income | $ | 175.2 |  |  | $ | 0.5 |  | (a) | $ | — |  |  | $ | 175.7 |
| Three Months Ended June 30, 2023
| State Transcos |  | AEPTCo Parent |  | Reconciling Adjustments |  | AEPTCo Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |
External Customers | $ | 87.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 87.4 |
Sales to AEP Affiliates | 357.5 |  |  | — |  |  | — |  |  | 357.5 |
Total Revenues | $ | 444.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 444.9 |
Net Income | $ | 174.2 |  |  | $ | 1.5 |  | (a) | $ | — |  |  | $ | 175.7 |
| Six Months Ended June 30, 2024
| State Transcos |  | AEPTCo Parent |  | Reconciling Adjustments |  | AEPTCo Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |
External Customers | $ | 194.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 194.0 |
Sales to AEP Affiliates | 761.2 |  |  | — |  |  | — |  |  | 761.2 |
Other Revenues | 2.8 |  |  | — |  |  | — |  |  | 2.8 |
Total Revenues | $ | 958.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 958.0 |
Net Income | $ | 356.9 |  |  | $ | — |  | (a) | $ | — |  |  | $ | 356.9 |
| Six Months Ended June 30, 2023
| State Transcos |  | AEPTCo Parent |  | Reconciling Adjustments |  | AEPTCo Consolidated
| (in millions)
Revenues from: |  |  |  |  |  |  |
External Customers | $ | 176.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 176.4 |
Sales to AEP Affiliates | 710.1 |  |  | — |  |  | — |  |  | 710.1 |
Total Revenues | $ | 886.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 886.5 |
Net Income | $ | 335.8 |  |  | $ | 2.6 |  | (a) | $ | — |  |  | $ | 338.4 |
| June 30, 2024
| State Transcos |  | AEPTCo Parent |  | Reconciling Adjustments |  | AEPTCo Consolidated
| (in millions)
Total Assets | $ | 15,835.5 |  |  | $ | 5,942.2 |  | (b) | $ | (5,991.5) |  | (c) | $ | 15,786.2 |
| December 31, 2023
| State Transcos |  | AEPTCo Parent |  | Reconciling Adjustments |  | AEPTCo Consolidated
| (in millions)
Total Assets | $ | 15,120.6 |  |  | $ | 5,486.6 |  | (b) | $ | (5,534.7) |  | (c) | $ | 15,072.5 |
(a)Includes the elimination of AEPTCo Parent’s equity earnings in the State Transcos. (b)Primarily relates to Notes Receivable from the State Transcos. (c)Primarily relates to the elimination of Notes Receivable from the State Transcos.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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