A two-mode, compound-split, electro-mechanical transmission utilizes an input member for receiving power from an engine, and an output member for delivering power from the transmission. First and second motor/generators are operatively connected to an energy storage device through a control for interchanging electrical power among the storage device, the first motor/generator and the second motor/generator. The transmission employs three planetary gear sets. Each planetary gear arrangement utilizes first, second and third gear members. The transmission also employs five torque-transmitting mechanisms. One of the five torque-transmitting mechanisms is contained within each of the first and second motor/generators.