American Electric Power (AEP) FY2025 results: revenue $21.9 billion, up 10.9% on the year

AEP is a public utility holding company that directly owns all of the outstanding common stock of the public utility subsidiaries that generate, transmit and distribute electricity. It was incorporated in New York in 1906 and reorganised in 1925. The service areas of those subsidiaries cover portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. As a holding company rather than an operating company, AEP itself has no employees, and its subsidiaries had a total of 17,581 at the end of 2025. It reports four segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing.

Vertically Integrated Utilities

The 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. Generation is dispatched centrally, and AEPSC acts as agent for the subsidiaries in marketing, generation dispatch, fuel procurement and power-related risk management and trading. The segment owned approximately 25,400 MW of generation at the end of 2025.

Sales are made at rates approved by the state utility commissions of the states in which the subsidiaries operate, and in some instances approved by the federal energy regulator. The filing says these sales are not subject to competition from other vertically integrated public utilities, and that other than AEGCo these companies hold franchises or other rights that effectively grant the exclusive ability to provide electric service in various municipalities and regions.

On an actual net generation basis in 2025, coal and lignite supplied 43 percent, natural gas 22 percent, nuclear 19 percent and renewables 16 percent. The plants took delivery of 19 million tons of coal and lignite during the year and consumed approximately 164 billion cubic feet of natural gas for generating power. Through subsidiaries the segment owns, leases or controls 3,009 railcars, 270 barges, 4 towboats and a coal handling terminal with approximately 18 million tons of annual capacity. Coal inventory stood at approximately 63 days of full load burn at the end of 2025, against a current inventory target of approximately 35 days per plant.

Nuclear generation comes from I&M's Cook Plant. The operating licences expire in 2034 for Unit 1 and 2037 for Unit 2, and the filing states that management has started the application process for extensions that would carry the two units to 2054 and 2057.

Transmission and Distribution Utilities

The transmission and distribution of electricity, without generation, through assets owned and operated by AEP Texas and OPCo. Their services are sold to retail customers in their service territories at rates approved by the Texas utility regulator for AEP Texas, and by the Ohio utilities regulator and the federal energy regulator for OPCo. AEP Texas had approximately 1,133,000 retail customers at the end of 2025 and OPCo approximately 1,547,000. OPCo purchases energy and capacity at auction to serve generation service customers who have not switched to a competitive generation supplier.

AEP Transmission Holdco

A holding company for AEPTCo, which is in turn the direct holding company of the state transmission companies, and the holder of interests in several transmission joint ventures. The state transmission companies develop, own, operate and maintain their respective transmission assets, and are independent of but respectively overlay the electric utility operating companies APCo, I&M, KPCo, OPCo, PSO, SWEPCo and WPCo.

The joint ventures were established with nonaffiliated electric utility companies to develop, build and own transmission assets, and the filing says they seek to improve reliability and market efficiency and provide transmission access to remote generation sources in North America. They include ETT in the ERCOT area of Texas, Prairie Wind Transmission in Kansas, Pioneer Transmission in Indiana, Transource Energy across Missouri, West Virginia, Maryland, Oklahoma and Pennsylvania, Midcontinent Grid Solutions in Wisconsin, and Valley Link Transmission in Maryland, Virginia and West Virginia.

Generation & Marketing

A retail supply business and a wholesale energy trading and marketing business. The retail business, AEP Energy, provides electricity and natural gas to residential, commercial and industrial customers in Illinois, Pennsylvania, Delaware, Maryland, New Jersey, Ohio and Washington, D.C., and had approximately 922,342 customer accounts at the end of 2025. The wholesale business transacts within regional transmission organisations to provide supply to customers, manage pricing risk or otherwise fulfil contractual obligations, and in certain instances procures physical electricity from identified sources including renewable generation. The segment also holds rights to Cardinal Plant Unit 1's power and capacity through 2028 under an agreement with a nonaffiliated electric cooperative. AEP OnSite Partners was sold in September 2024 and AEP Renewables in August 2023.

Who takes the power

The industries named as principally served across the utility subsidiaries include petroleum and coal products manufacturing, chemical manufacturing, oil and gas extraction, pipeline transportation, primary metal manufacturing, data processing, coal mining, paper manufacturing, transportation equipment, plastics and rubber products, fabricated metals and food manufacturing. Data processing here primarily includes data centres and cryptocurrency operations. The subsidiaries also supply and market electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities and other market participants.

Seasonality

Demand for power peaks during the hot summer months in many parts of the country, and during the cold winter months in some areas. The filing says AEP has historically sold and delivered less power when weather conditions are milder.

From American Electric Power's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 12 February 2026: read the full 10-K.