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Financing Activities

6 Months Ended

Jun. 30, 2011

11. FINANCING ACTIVITIES

Long-term Debt

	Type of Debt	June 30, 2011		December 31, 2010
		(in millions)
	Senior Unsecured Notes	$	11,750	$	11,669
	Pollution Control Bonds		2,153		2,263
	Notes Payable		347		396
	Securitization Bonds		1,755		1,847
	Junior Subordinated Debentures		315		315
	Spent Nuclear Fuel Obligation (a)		265		265
	Other Long-term Debt		92		91
	Unamortized Discount (net)		(42)		(35)
	Total Long-term Debt Outstanding		16,635		16,811
	Less Portion Due Within One Year		1,071		1,309
	Long-term Portion	$	15,564	$	15,502

(a) Pursuant to the Nuclear Waste Policy Act of 1982, I&M, a nuclear licensee, has an obligation to the United States Department of Energy for spent nuclear fuel disposal. The obligation includes a one-time fee for nuclear fuel consumed prior to April 7, 1983. Trust fund assets related to this obligation were $307 million at June 30, 2011 and December 31, 2010, and are included in Spent Nuclear Fuel and Decommissioning Trusts on our Condensed Consolidated Balance Sheets.

Long-term debt and other securities issued, retired and principal payments made during the first six months of 2011 are shown in the tables below:

Principal

Interest

Company

Type of Debt

Amount

Rate

Due Date

Issuances:

(in millions)

(%)

APCo

Senior Unsecured Notes

350

4.60

2021

APCo

Pollution Control Bonds

2.00

2012

APCo

Pollution Control Bonds

(a)

Variable

2036

APCo

Pollution Control Bonds

(a)

Variable

2042

APCo

Pollution Control Bonds

(a)

Variable

2036

APCo

Pollution Control Bonds

(a)

Variable

2042

I&M

Pollution Control Bonds

(a)

Variable

2021

I&M

Pollution Control Bonds

(a)

Variable

2019

OPCo

Pollution Control Bonds

(a)

Variable

2014

PSO

Senior Unsecured Notes

250

4.40

2021

PSO

Notes Payable

3.00

2026

TCC

Pollution Control Bonds

(a)

1.125

2012

Total Issuances

1,083

(b)

(a) These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year on our Condensed Consolidated Balance Sheets.

(b) Amount indicated on the statement of cash flows of $1,074 million is net of issuance costs and premium or discount.

				Principal		Interest
Company		Type of Debt		Amount Paid		Rate	Due Date
Retirements and			(in millions)			(%)
	Principal Payments:
APCo		Pollution Control Bonds		$	75	Variable	2036
APCo		Pollution Control Bonds			54	Variable	2042
APCo		Pollution Control Bonds			50	Variable	2042
APCo		Pollution Control Bonds			50	Variable	2036
APCo		Senior Unsecured Notes			250	5.55	2011
I&M		Pollution Control Bonds			52	Variable	2021
I&M		Pollution Control Bonds			25	Variable	2019
I&M		Notes Payable			13	5.16	2014
I&M		Notes Payable			15	5.44	2013
I&M		Notes Payable			11	Variable	2015
OPCo		Pollution Control Bonds			65	Variable	2036
OPCo		Pollution Control Bonds			50	Variable	2014
OPCo		Pollution Control Bonds			50	Variable	2014
PSO		Senior Unsecured Notes			200	6.00	2032
PSO		Senior Unsecured Notes			75	4.70	2011

Non-Registrant:
AEP Subsidiaries		Notes Payable			5	Variable	2017
AEP Subsidiaries		Notes Payable			6	Variable	2011
AEGCo		Senior Unsecured Notes			4	6.33	2037
TCC		Securitization Bonds			34	5.96	2013
TCC		Securitization Bonds			58	4.98	2013
TCC		Pollution Control Bonds			121	5.125	2011
Total Retirements and
	Principal Payments			$	1,263

In July 2011, SWEPCo retired $41 million of 4.5% Pollution Control Bonds due in 2011.

In July 2011, AEGCo remarketed $45 million of variable rate Pollution Control Bonds which may be tendered for purchase at the option of the holder. The Pollution Control Bonds are supported by letters of credit, which expire in 2014.

In July 2011, I&M retired $2 million of Notes Payable related to DCC Fuel.

As of June 30, 2011, trustees held, on our behalf, $478 million of our reacquired Pollution Control Bonds.

Dividend Restrictions

Parent Restrictions

The holders of our common stock are entitled to receive the dividends declared by our Board of Directors provided funds are legally available for such dividends. Our income derives from our common stock equity in the earnings of our utility subsidiaries.

Pursuant to the leverage restrictions in our credit agreements, we must maintain a percentage of debt to total capitalization at a level that does not exceed 67.5%. The payment of cash dividends indirectly results in an increase in the percentage of debt to total capitalization of the company distributing the dividend. The method for calculating outstanding debt and capitalization is contractually defined in the credit agreements. None of AEP's retained earnings were restricted for the purpose of the payment of dividends.

We have issued $315 million of Junior Subordinated Debentures. The debentures will mature on March 1, 2063, subject to extensions to no later than March 1, 2068, and are callable at par any time on or after March 1, 2013. We have the option to defer interest payments on the debentures for one or more periods of up to 10 consecutive years per period. During any period in which we defer interest payments, we may not declare or pay any dividends or distributions on, or redeem, repurchase or acquire our common stock. We do not anticipate any deferral of those interest payments in the foreseeable future.

Utility Subsidiaries' Restrictions

Various charter provisions and regulatory requirements may impose certain restrictions on the ability of our utility subsidiaries to transfer funds to us in the form of dividends.

The Federal Power Act prohibits the utility subsidiaries from participating “in the making or paying of any dividends of such public utility from any funds properly included in capital account.” The term “capital account” is not defined in the Federal Power Act or its regulations. Management understands “capital account” to mean the par value of the common stock multiplied by the number of shares outstanding. This restriction does not limit the ability of the utility subsidiaries to pay dividends out of retained earnings.

Short-term Debt

Our outstanding short-term debt was as follows:

		June 30, 2011				December 31, 2010
		Outstanding		Interest		Outstanding		Interest
	Type of Debt	Amount		Rate (a)		Amount		Rate (a)
		(in millions)				(in millions)
	Securitized Debt for Receivables (b)	$	695	0.23	%	$	690	0.31	%
	Commercial Paper		944	0.41	%		650	0.52	%
	Line of Credit – Sabine Mining Company (c)		-	-	%		6	2.15	%
	Total Short-term Debt	$	1,639			$	1,346

(a) Weighted average rate.

(b) Amount of securitized debt for receivables as accounted for under the ''Transfers and Servicing'' accounting guidance.

(c) Sabine Mining Company is a consolidated variable interest entity. This line of credit does not reduce available liquidity under AEP's credit facilities.

Credit Facilities

We have two $1.5 billion credit facilities, under which we may issue up to $1.35 billion as letters of credit. In July 2011, we replaced the $1.5 billion facility due in 2012 with a new $1.75 billion facility maturing in July 2016 and extended the $1.5 billion facility due in 2013 to expire in June 2015. As of June 30, 2011, the maximum future payments for letters of credit issued under the two $1.5 billion credit facilities were $132 million.

In March 2011, we terminated a $478 million credit agreement that was scheduled to mature in April 2011 and was used to support $472 million of variable rate Pollution Control Bonds. In March 2011, we remarketed $357 million of variable rate Pollution Control Bonds using bilateral letters of credit for $361 million to support the remarketed Pollution Control Bonds. The remaining $115 million of Pollution Control Bonds were reacquired and are held by trustees.

Securitized Accounts Receivable – AEP Credit

AEP Credit has a receivables securitization agreement with bank conduits. Under the securitization agreement, AEP Credit receives financing from the bank conduits for the interest in the receivables AEP Credit acquires from affiliated utility subsidiaries. AEP Credit continues to service the receivables. These securitized transactions allow AEP Credit to repay its outstanding debt obligations, continue to purchase our operating companies' receivables and accelerate AEP Credit's cash collections.

In July 2011, AEP Credit renewed its receivables securitization agreement. The agreement provides commitments of $750 million from bank conduits to finance receivables from AEP Credit with an increase to $800 million for the months of July, August and September to accommodate seasonal demand. A commitment of $375 million, with the seasonal increase to $425 million for the months of July, August and September, expires in June 2012 and the remaining commitment of $375 million expires in June 2014.

Accounts receivable information for AEP Credit is as follows:

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2011			2010			2011			2010
		(dollars in millions)
Effective Interest Rates on Securitization of
	Accounts Receivable		0.26	%		0.31	%		0.28	%		0.27	%
Net Uncollectible Accounts Receivable
	Written Off	$	6		$	4		$	17		$	12

		June 30,		December 31,
		2011		2010
		(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral
	Less Uncollectible Accounts	$	1,001	$	923
Total Principal Outstanding			695		690
Delinquent Securitized Accounts Receivable			39		50
Bad Debt Reserves Related to Securitization/Sale of Accounts Receivable			22		26
Unbilled Receivables Related to Securitization/Sale of Accounts Receivable			413		354

Customer accounts receivable retained and securitized for our operating companies are managed by AEP Credit. AEP Credit's delinquent customer accounts receivable represents accounts greater than 30 days past due.

Appalachian Power Co [Member]

Financing Activities [Abstract]

Financing Activities

11. FINANCING ACTIVITIES

Long-term Debt

Long-term debt and other securities issued, retired and principal payments made during the first six months of 2011 are shown in the tables below

		Principal			Interest	Due
Company	Type of Debt	Amount			Rate	Date
Issuances:		(in thousands)			(%)
APCo	Senior Unsecured Notes	$	350,000		4.60	2021
APCo	Pollution Control Bonds		65,350		2.00	2012
APCo	Pollution Control Bonds		75,000	(a)	Variable	2036
APCo	Pollution Control Bonds		54,375	(a)	Variable	2042
APCo	Pollution Control Bonds		50,275	(a)	Variable	2036
APCo	Pollution Control Bonds		50,000	(a)	Variable	2042
I&M	Pollution Control Bonds		52,000	(a)	Variable	2021
I&M	Pollution Control Bonds		25,000	(a)	Variable	2019
OPCo	Pollution Control Bonds		50,000	(a)	Variable	2014
PSO	Senior Unsecured Notes		250,000		4.40	2021
PSO	Notes Payable		1,187		3.00	2026

These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year – Nonaffiliated on the balance sheets.

			Principal		Interest	Due
Company		Type of Debt	Amount Paid		Rate	Date
Retirements and			(in thousands)		(%)
	Principal Payments:
APCo		Pollution Control Bonds	$	75,000	Variable	2036
APCo		Pollution Control Bonds		54,375	Variable	2042
APCo		Pollution Control Bonds		50,000	Variable	2042
APCo		Pollution Control Bonds		50,275	Variable	2036
APCo		Senior Unsecured Notes		250,000	5.55	2011
APCo		Land Note		11	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				10,894	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
OPCo		Pollution Control Bonds		65,000	Variable	2036
OPCo		Pollution Control Bonds		50,000	Variable	2014
OPCo		Pollution Control Bonds		50,000	Variable	2014
PSO		Senior Unsecured Notes		200,000	6.00	2032
PSO		Senior Unsecured Notes		75,000	4.70	2011

Dividend Restrictions

The Registrant Subsidiaries pay dividends to Parent provided funds are legally available. Various charter provisions and regulatory requirements may impose certain restrictions on the ability of the Registrant Subsidiaries to transfer funds to Parent in the form of dividends.

Federal Power Act

The Federal Power Act prohibits each of the Registrant Subsidiaries from participating “in the making or paying of any dividends of such public utility from any funds properly included in capital account.” The term “capital account” is not defined in the Federal Power Act or its regulations. As applicable, the Registrant Subsidiaries understand “capital account” to mean the par value of the common stock multiplied by the number of shares outstanding.

Additionally, the Federal Power Act creates a reserve on earnings attributable to hydroelectric generating plants. Because of their respective ownership of such plants, this reserve applies to APCo, I&M and OPCo.

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Charter and Leverage Restrictions

Provisions within the articles or certificates of incorporation of the Registrant Subsidiaries relating to preferred stock or shares restrict the payment of cash dividends on common and preferred stock or shares.

Utility Money Pool – AEP System

The AEP System uses a corporate borrowing program to meet the short-term borrowing needs of its subsidiaries. The corporate borrowing program includes a Utility Money Pool, which funds the utility subsidiaries. The AEP System Utility Money Pool operates in accordance with the terms and conditions approved in a regulatory order. The amount of outstanding loans (borrowings) to/from the Utility Money Pool as of June 30, 2011 and December 31, 2010 is included in Advances to/from Affiliates on each of the Registrant Subsidiaries' balance sheets. The Utility Money Pool participants' money pool activity and their corresponding authorized borrowing limits for the six months ended June 30, 2011 are described in the following table:

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		June 30, 2011		Limit
	(in thousands)
APCo	$	195,945	$	393,811	$	102,608	$	154,349	$	162,787	$	600,000
CSPCo		17,256		130,250		10,098		78,172		71,323		350,000
I&M		52,098		89,276		22,098		32,773		(24,537)		500,000
OPCo		51,169		237,196		17,873		116,937		136,965		600,000
PSO		96,034		255,611		45,042		95,323		110		300,000
SWEPCo		26,424		105,184		11,178		38,798		34,684		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Six Months Ended June 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.51	%
Minimum Interest Rate	0.06	%	0.09	%

The average interest rates for funds borrowed from and loaned to the Utility Money Pool for the six months ended June 30, 2011 and 2010 are summarized for all Registrant Subsidiaries in the following table:

	Average Interest Rate				Average Interest Rate
	for Funds Borrowed				for Funds Loaned
	from Utility Money Pool for				to Utility Money Pool for
	Six Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.23	%	0.27	%	-	%
CSPCo	0.52	%	0.18	%	0.27	%	0.26	%
I&M	0.44	%	-	%	0.23	%	0.21	%
OPCo	0.41	%	-	%	0.24	%	0.18	%
PSO	0.41	%	0.28	%	0.19	%	0.16	%
SWEPCo	0.25	%	0.19	%	0.33	%	0.25	%

Credit Facilities

In March 2011, the Registrant Subsidiaries and certain other companies in the AEP System terminated a $478 million credit agreement that was scheduled to mature in April 2011 and was used to support variable rate Pollution Control Bonds. In March 2011, certain variable rate Pollution Control Bonds were remarketed and supported by bilateral letters of credit for $361 million while others were reacquired and are being held in trust. As of June 30, 2011, $472 million of variable rate Pollution Control Bonds were remarketed or reacquired as follows

	June 30, 2011
			Reacquired and		Bilateral Letters
Company	Remarketed		Held in Trust		of Credit Issued
	(in thousands)
APCo	$	229,650	$	-	$	232,293
I&M		77,000		-		77,886
OPCo		50,000		115,000		50,575

Sale of Receivables – AEP Credit

Under a sale of receivables arrangement, the Registrant Subsidiaries sell, without recourse, certain of their customer accounts receivable and accrued unbilled revenue balances to AEP Credit and are charged a fee based on AEP Credit's financing costs, administrative costs and uncollectible accounts experience for each Registrant Subsidiary's receivables. APCo does not have regulatory authority to sell its West Virginia accounts receivable. The costs of customer accounts receivable sold are reported in Other Operation expense on the Registrant Subsidiaries' income statements. The Registrant Subsidiaries manage and service their customer accounts receivable sold.

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of June 30, 2011 and December 31, 2010 was as follows:

	June 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	123,959	$	145,515
CSPCo		179,639		175,997
I&M		132,772		123,366
OPCo		192,529		168,701
PSO		150,689		121,679
SWEPCo		174,496		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,239	$	1,895	$	4,814	$	3,776
CSPCo		2,594		2,782		4,926		5,690
I&M		1,508		1,657		3,135		3,444
OPCo		1,811		2,449		3,514		5,149
PSO		1,483		1,367		2,717		2,750
SWEPCo		1,303		1,462		2,403		3,133

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	284,715	$	317,120	$	650,924	$	758,830
CSPCo		374,925		422,628		781,571		847,313
I&M		315,551		297,384		666,572		636,593
OPCo		456,910		410,331		961,302		851,840
PSO		317,060		311,883		585,629		526,530
SWEPCo		375,903		338,286		690,027		657,245

Columbus Southern Power Co [Member]

Financing Activities [Abstract]

Financing Activities

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Charter and Leverage Restrictions

Utility Money Pool – AEP System

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		June 30, 2011		Limit
	(in thousands)
APCo	$	195,945	$	393,811	$	102,608	$	154,349	$	162,787	$	600,000
CSPCo		17,256		130,250		10,098		78,172		71,323		350,000
I&M		52,098		89,276		22,098		32,773		(24,537)		500,000
OPCo		51,169		237,196		17,873		116,937		136,965		600,000
PSO		96,034		255,611		45,042		95,323		110		300,000
SWEPCo		26,424		105,184		11,178		38,798		34,684		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Six Months Ended June 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.51	%
Minimum Interest Rate	0.06	%	0.09	%

	Average Interest Rate				Average Interest Rate
	for Funds Borrowed				for Funds Loaned
	from Utility Money Pool for				to Utility Money Pool for
	Six Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.23	%	0.27	%	-	%
CSPCo	0.52	%	0.18	%	0.27	%	0.26	%
I&M	0.44	%	-	%	0.23	%	0.21	%
OPCo	0.41	%	-	%	0.24	%	0.18	%
PSO	0.41	%	0.28	%	0.19	%	0.16	%
SWEPCo	0.25	%	0.19	%	0.33	%	0.25	%

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of June 30, 2011 and December 31, 2010 was as follows:

	June 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	123,959	$	145,515
CSPCo		179,639		175,997
I&M		132,772		123,366
OPCo		192,529		168,701
PSO		150,689		121,679
SWEPCo		174,496		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,239	$	1,895	$	4,814	$	3,776
CSPCo		2,594		2,782		4,926		5,690
I&M		1,508		1,657		3,135		3,444
OPCo		1,811		2,449		3,514		5,149
PSO		1,483		1,367		2,717		2,750
SWEPCo		1,303		1,462		2,403		3,133

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	284,715	$	317,120	$	650,924	$	758,830
CSPCo		374,925		422,628		781,571		847,313
I&M		315,551		297,384		666,572		636,593
OPCo		456,910		410,331		961,302		851,840
PSO		317,060		311,883		585,629		526,530
SWEPCo		375,903		338,286		690,027		657,245

Indiana Michigan Power Co [Member]

Financing Activities [Abstract]

Financing Activities

11. FINANCING ACTIVITIES

Long-term Debt

Long-term debt and other securities issued, retired and principal payments made during the first six months of 2011 are shown in the tables below

		Principal			Interest	Due
Company	Type of Debt	Amount			Rate	Date
Issuances:		(in thousands)			(%)
APCo	Senior Unsecured Notes	$	350,000		4.60	2021
APCo	Pollution Control Bonds		65,350		2.00	2012
APCo	Pollution Control Bonds		75,000	(a)	Variable	2036
APCo	Pollution Control Bonds		54,375	(a)	Variable	2042
APCo	Pollution Control Bonds		50,275	(a)	Variable	2036
APCo	Pollution Control Bonds		50,000	(a)	Variable	2042
I&M	Pollution Control Bonds		52,000	(a)	Variable	2021
I&M	Pollution Control Bonds		25,000	(a)	Variable	2019
OPCo	Pollution Control Bonds		50,000	(a)	Variable	2014
PSO	Senior Unsecured Notes		250,000		4.40	2021
PSO	Notes Payable		1,187		3.00	2026

These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year – Nonaffiliated on the balance sheets.

			Principal		Interest	Due
Company		Type of Debt	Amount Paid		Rate	Date
Retirements and			(in thousands)		(%)
	Principal Payments:
APCo		Pollution Control Bonds	$	75,000	Variable	2036
APCo		Pollution Control Bonds		54,375	Variable	2042
APCo		Pollution Control Bonds		50,000	Variable	2042
APCo		Pollution Control Bonds		50,275	Variable	2036
APCo		Senior Unsecured Notes		250,000	5.55	2011
APCo		Land Note		11	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				10,894	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
OPCo		Pollution Control Bonds		65,000	Variable	2036
OPCo		Pollution Control Bonds		50,000	Variable	2014
OPCo		Pollution Control Bonds		50,000	Variable	2014
PSO		Senior Unsecured Notes		200,000	6.00	2032
PSO		Senior Unsecured Notes		75,000	4.70	2011

In July 2011, I&M retired $2 million of Notes Payable related to DCC Fuel.

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Charter and Leverage Restrictions

Utility Money Pool – AEP System

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		June 30, 2011		Limit
	(in thousands)
APCo	$	195,945	$	393,811	$	102,608	$	154,349	$	162,787	$	600,000
CSPCo		17,256		130,250		10,098		78,172		71,323		350,000
I&M		52,098		89,276		22,098		32,773		(24,537)		500,000
OPCo		51,169		237,196		17,873		116,937		136,965		600,000
PSO		96,034		255,611		45,042		95,323		110		300,000
SWEPCo		26,424		105,184		11,178		38,798		34,684		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Six Months Ended June 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.51	%
Minimum Interest Rate	0.06	%	0.09	%

	Average Interest Rate				Average Interest Rate
	for Funds Borrowed				for Funds Loaned
	from Utility Money Pool for				to Utility Money Pool for
	Six Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.23	%	0.27	%	-	%
CSPCo	0.52	%	0.18	%	0.27	%	0.26	%
I&M	0.44	%	-	%	0.23	%	0.21	%
OPCo	0.41	%	-	%	0.24	%	0.18	%
PSO	0.41	%	0.28	%	0.19	%	0.16	%
SWEPCo	0.25	%	0.19	%	0.33	%	0.25	%

Credit Facilities

AEP has two $1.5 billion credit facilities, under which up to $1.35 billion may be issued as letters of credit. In July 2011, AEP replaced the $1.5 billion facility due in 2012 with a new $1.75 billion facility maturing in July 2016 and extended the $1.5 billion facility due in 2013 to expire in June 2015. As of June 30, 2011, the maximum future payments for letters of credit issued under the two $1.5 billion credit facilities were $150 thousand for I&M and $4 million for SWEPCo.

	June 30, 2011
			Reacquired and		Bilateral Letters
Company	Remarketed		Held in Trust		of Credit Issued
	(in thousands)
APCo	$	229,650	$	-	$	232,293
I&M		77,000		-		77,886
OPCo		50,000		115,000		50,575

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of June 30, 2011 and December 31, 2010 was as follows:

	June 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	123,959	$	145,515
CSPCo		179,639		175,997
I&M		132,772		123,366
OPCo		192,529		168,701
PSO		150,689		121,679
SWEPCo		174,496		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,239	$	1,895	$	4,814	$	3,776
CSPCo		2,594		2,782		4,926		5,690
I&M		1,508		1,657		3,135		3,444
OPCo		1,811		2,449		3,514		5,149
PSO		1,483		1,367		2,717		2,750
SWEPCo		1,303		1,462		2,403		3,133

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	284,715	$	317,120	$	650,924	$	758,830
CSPCo		374,925		422,628		781,571		847,313
I&M		315,551		297,384		666,572		636,593
OPCo		456,910		410,331		961,302		851,840
PSO		317,060		311,883		585,629		526,530
SWEPCo		375,903		338,286		690,027		657,245

Ohio Power Co [Member]

Financing Activities [Abstract]

Financing Activities

11. FINANCING ACTIVITIES

Long-term Debt

Long-term debt and other securities issued, retired and principal payments made during the first six months of 2011 are shown in the tables below

		Principal			Interest	Due
Company	Type of Debt	Amount			Rate	Date
Issuances:		(in thousands)			(%)
APCo	Senior Unsecured Notes	$	350,000		4.60	2021
APCo	Pollution Control Bonds		65,350		2.00	2012
APCo	Pollution Control Bonds		75,000	(a)	Variable	2036
APCo	Pollution Control Bonds		54,375	(a)	Variable	2042
APCo	Pollution Control Bonds		50,275	(a)	Variable	2036
APCo	Pollution Control Bonds		50,000	(a)	Variable	2042
I&M	Pollution Control Bonds		52,000	(a)	Variable	2021
I&M	Pollution Control Bonds		25,000	(a)	Variable	2019
OPCo	Pollution Control Bonds		50,000	(a)	Variable	2014
PSO	Senior Unsecured Notes		250,000		4.40	2021
PSO	Notes Payable		1,187		3.00	2026

These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year – Nonaffiliated on the balance sheets.

			Principal		Interest	Due
Company		Type of Debt	Amount Paid		Rate	Date
Retirements and			(in thousands)		(%)
	Principal Payments:
APCo		Pollution Control Bonds	$	75,000	Variable	2036
APCo		Pollution Control Bonds		54,375	Variable	2042
APCo		Pollution Control Bonds		50,000	Variable	2042
APCo		Pollution Control Bonds		50,275	Variable	2036
APCo		Senior Unsecured Notes		250,000	5.55	2011
APCo		Land Note		11	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				10,894	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
OPCo		Pollution Control Bonds		65,000	Variable	2036
OPCo		Pollution Control Bonds		50,000	Variable	2014
OPCo		Pollution Control Bonds		50,000	Variable	2014
PSO		Senior Unsecured Notes		200,000	6.00	2032
PSO		Senior Unsecured Notes		75,000	4.70	2011

As of June 30, 2011, trustees held, on behalf of OPCo, $418 million of its reacquired Pollution Control Bonds.

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Charter and Leverage Restrictions

Utility Money Pool – AEP System

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		June 30, 2011		Limit
	(in thousands)
APCo	$	195,945	$	393,811	$	102,608	$	154,349	$	162,787	$	600,000
CSPCo		17,256		130,250		10,098		78,172		71,323		350,000
I&M		52,098		89,276		22,098		32,773		(24,537)		500,000
OPCo		51,169		237,196		17,873		116,937		136,965		600,000
PSO		96,034		255,611		45,042		95,323		110		300,000
SWEPCo		26,424		105,184		11,178		38,798		34,684		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Six Months Ended June 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.51	%
Minimum Interest Rate	0.06	%	0.09	%

	Average Interest Rate				Average Interest Rate
	for Funds Borrowed				for Funds Loaned
	from Utility Money Pool for				to Utility Money Pool for
	Six Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.23	%	0.27	%	-	%
CSPCo	0.52	%	0.18	%	0.27	%	0.26	%
I&M	0.44	%	-	%	0.23	%	0.21	%
OPCo	0.41	%	-	%	0.24	%	0.18	%
PSO	0.41	%	0.28	%	0.19	%	0.16	%
SWEPCo	0.25	%	0.19	%	0.33	%	0.25	%

Credit Facilities

	June 30, 2011
			Reacquired and		Bilateral Letters
Company	Remarketed		Held in Trust		of Credit Issued
	(in thousands)
APCo	$	229,650	$	-	$	232,293
I&M		77,000		-		77,886
OPCo		50,000		115,000		50,575

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of June 30, 2011 and December 31, 2010 was as follows:

	June 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	123,959	$	145,515
CSPCo		179,639		175,997
I&M		132,772		123,366
OPCo		192,529		168,701
PSO		150,689		121,679
SWEPCo		174,496		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,239	$	1,895	$	4,814	$	3,776
CSPCo		2,594		2,782		4,926		5,690
I&M		1,508		1,657		3,135		3,444
OPCo		1,811		2,449		3,514		5,149
PSO		1,483		1,367		2,717		2,750
SWEPCo		1,303		1,462		2,403		3,133

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	284,715	$	317,120	$	650,924	$	758,830
CSPCo		374,925		422,628		781,571		847,313
I&M		315,551		297,384		666,572		636,593
OPCo		456,910		410,331		961,302		851,840
PSO		317,060		311,883		585,629		526,530
SWEPCo		375,903		338,286		690,027		657,245

Public Service Co Of Oklahoma [Member]

Financing Activities [Abstract]

Financing Activities

11. FINANCING ACTIVITIES

Long-term Debt

Long-term debt and other securities issued, retired and principal payments made during the first six months of 2011 are shown in the tables below

		Principal			Interest	Due
Company	Type of Debt	Amount			Rate	Date
Issuances:		(in thousands)			(%)
APCo	Senior Unsecured Notes	$	350,000		4.60	2021
APCo	Pollution Control Bonds		65,350		2.00	2012
APCo	Pollution Control Bonds		75,000	(a)	Variable	2036
APCo	Pollution Control Bonds		54,375	(a)	Variable	2042
APCo	Pollution Control Bonds		50,275	(a)	Variable	2036
APCo	Pollution Control Bonds		50,000	(a)	Variable	2042
I&M	Pollution Control Bonds		52,000	(a)	Variable	2021
I&M	Pollution Control Bonds		25,000	(a)	Variable	2019
OPCo	Pollution Control Bonds		50,000	(a)	Variable	2014
PSO	Senior Unsecured Notes		250,000		4.40	2021
PSO	Notes Payable		1,187		3.00	2026

These pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year – Nonaffiliated on the balance sheets.

			Principal		Interest	Due
Company		Type of Debt	Amount Paid		Rate	Date
Retirements and			(in thousands)		(%)
	Principal Payments:
APCo		Pollution Control Bonds	$	75,000	Variable	2036
APCo		Pollution Control Bonds		54,375	Variable	2042
APCo		Pollution Control Bonds		50,000	Variable	2042
APCo		Pollution Control Bonds		50,275	Variable	2036
APCo		Senior Unsecured Notes		250,000	5.55	2011
APCo		Land Note		11	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				10,894	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
OPCo		Pollution Control Bonds		65,000	Variable	2036
OPCo		Pollution Control Bonds		50,000	Variable	2014
OPCo		Pollution Control Bonds		50,000	Variable	2014
PSO		Senior Unsecured Notes		200,000	6.00	2032
PSO		Senior Unsecured Notes		75,000	4.70	2011

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Charter and Leverage Restrictions

Utility Money Pool – AEP System

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		June 30, 2011		Limit
	(in thousands)
APCo	$	195,945	$	393,811	$	102,608	$	154,349	$	162,787	$	600,000
CSPCo		17,256		130,250		10,098		78,172		71,323		350,000
I&M		52,098		89,276		22,098		32,773		(24,537)		500,000
OPCo		51,169		237,196		17,873		116,937		136,965		600,000
PSO		96,034		255,611		45,042		95,323		110		300,000
SWEPCo		26,424		105,184		11,178		38,798		34,684		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Six Months Ended June 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.51	%
Minimum Interest Rate	0.06	%	0.09	%

	Average Interest Rate				Average Interest Rate
	for Funds Borrowed				for Funds Loaned
	from Utility Money Pool for				to Utility Money Pool for
	Six Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.23	%	0.27	%	-	%
CSPCo	0.52	%	0.18	%	0.27	%	0.26	%
I&M	0.44	%	-	%	0.23	%	0.21	%
OPCo	0.41	%	-	%	0.24	%	0.18	%
PSO	0.41	%	0.28	%	0.19	%	0.16	%
SWEPCo	0.25	%	0.19	%	0.33	%	0.25	%

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of June 30, 2011 and December 31, 2010 was as follows:

	June 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	123,959	$	145,515
CSPCo		179,639		175,997
I&M		132,772		123,366
OPCo		192,529		168,701
PSO		150,689		121,679
SWEPCo		174,496		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,239	$	1,895	$	4,814	$	3,776
CSPCo		2,594		2,782		4,926		5,690
I&M		1,508		1,657		3,135		3,444
OPCo		1,811		2,449		3,514		5,149
PSO		1,483		1,367		2,717		2,750
SWEPCo		1,303		1,462		2,403		3,133

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	284,715	$	317,120	$	650,924	$	758,830
CSPCo		374,925		422,628		781,571		847,313
I&M		315,551		297,384		666,572		636,593
OPCo		456,910		410,331		961,302		851,840
PSO		317,060		311,883		585,629		526,530
SWEPCo		375,903		338,286		690,027		657,245

Southwestern Electric Power Co [Member]

Financing Activities [Abstract]

Financing Activities

In July 2011, SWEPCo retired $41 million of 4.5% Pollution Control Bonds due in 2011.

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Charter and Leverage Restrictions

Utility Money Pool – AEP System

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		June 30, 2011		Limit
	(in thousands)
APCo	$	195,945	$	393,811	$	102,608	$	154,349	$	162,787	$	600,000
CSPCo		17,256		130,250		10,098		78,172		71,323		350,000
I&M		52,098		89,276		22,098		32,773		(24,537)		500,000
OPCo		51,169		237,196		17,873		116,937		136,965		600,000
PSO		96,034		255,611		45,042		95,323		110		300,000
SWEPCo		26,424		105,184		11,178		38,798		34,684		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Six Months Ended June 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.51	%
Minimum Interest Rate	0.06	%	0.09	%

	Average Interest Rate				Average Interest Rate
	for Funds Borrowed				for Funds Loaned
	from Utility Money Pool for				to Utility Money Pool for
	Six Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.23	%	0.27	%	-	%
CSPCo	0.52	%	0.18	%	0.27	%	0.26	%
I&M	0.44	%	-	%	0.23	%	0.21	%
OPCo	0.41	%	-	%	0.24	%	0.18	%
PSO	0.41	%	0.28	%	0.19	%	0.16	%
SWEPCo	0.25	%	0.19	%	0.33	%	0.25	%

Short-term Debt

The Registrant Subsidiaries’ outstanding short-term debt was as follows:

June 30, 2011

December 31, 2010

Outstanding

Interest

Outstanding

Interest

Company

Type of Debt

Amount

Rate (b)

Amount

Rate (b)

(in thousands)

SWEPCo

Line of Credit – Sabine (a)

6,217

2.15

(a)

Sabine Mining Company is a consolidated variable interest entity.

(b)

Weighted average rate.

Credit Facilities

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of June 30, 2011 and December 31, 2010 was as follows:

	June 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	123,959	$	145,515
CSPCo		179,639		175,997
I&M		132,772		123,366
OPCo		192,529		168,701
PSO		150,689		121,679
SWEPCo		174,496		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,239	$	1,895	$	4,814	$	3,776
CSPCo		2,594		2,782		4,926		5,690
I&M		1,508		1,657		3,135		3,444
OPCo		1,811		2,449		3,514		5,149
PSO		1,483		1,367		2,717		2,750
SWEPCo		1,303		1,462		2,403		3,133

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Three Months Ended June 30,				Six Months Ended June 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	284,715	$	317,120	$	650,924	$	758,830
CSPCo		374,925		422,628		781,571		847,313
I&M		315,551		297,384		666,572		636,593
OPCo		456,910		410,331		961,302		851,840
PSO		317,060		311,883		585,629		526,530
SWEPCo		375,903		338,286		690,027		657,245

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details