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Financing Activities

9 Months Ended

Sep. 30, 2011

11. FINANCING ACTIVITIES

Long-term Debt

	Type of Debt	September 30, 2011		December 31, 2010
		(in millions)
	Senior Unsecured Notes	$	11,737	$	11,669
	Pollution Control Bonds		2,112		2,263
	Notes Payable		337		396
	Securitization Bonds		1,688		1,847
	Junior Subordinated Debentures		315		315
	Spent Nuclear Fuel Obligation (a)		265		265
	Other Long-term Debt		28		91
	Unamortized Discount (net)		(32)		(35)
	Total Long-term Debt Outstanding		16,450		16,811
	Less Portion Due Within One Year		1,267		1,309
	Long-term Portion	$	15,183	$	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 $308 million and $307 million at September 30, 2011 and December 31, 2010, respectively, and are included in Spent Nuclear Fuel and Decommissioning Trusts on our condensed balance sheets.

Long-term debt and other securities issued, retired and principal payments made during the first nine 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

Non-Registrant:

AEGCo

Pollution Control Bonds

(a)

Variable

2025

AEGCo

Pollution Control Bonds

(a)

Variable

2025

TCC

Pollution Control Bonds

(a)

1.125

2012

Total Issuances

1,128

(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 balance sheets.

(b) Amount indicated on the statement of cash flows of $1,118 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			17	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
SWEPCo		Pollution Control Bonds			41	4.50	2011

Non-Registrant:
AEP Subsidiaries		Notes Payable			13	Variable	2017
AEP Subsidiaries		Notes Payable			6	Variable	2011
AEP Subsidiaries		Notes Payable			1	8.03	2026
AEP Subsidiaries		Notes Payable			1	7.59	2026
AEGCo		Other Long-term Debt			85	Variable	2011
AEGCo		Senior Unsecured Notes			7	6.33	2037
AEGCo		Pollution Control Bonds			22	4.15	2025
AEGCo		Pollution Control Bonds			23	4.15	2025
TCC		Securitization Bonds			60	5.96	2013
TCC		Securitization Bonds			99	4.98	2013
TCC		Pollution Control Bonds			121	5.125	2011
Total Retirements and
	Principal Payments			$	1,520

In October 2011, I&M retired $29 million of Notes Payable related to DCC Fuel.

In October 2011, APCo remarketed $100 million of 2% Pollution Control Bonds due in 2014.

As of September 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:

		September 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)	$	750	0.27	%	$	690	0.31	%
	Commercial Paper		529	0.42	%		650	0.52	%
	Line of Credit – Sabine Mining Company (c)		-	-	%		6	2.15	%
	Total Short-term Debt	$	1,279			$	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

For a discussion of credit facilities, see “Letters of Credit” section of Note 4.

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						Nine Months Ended
		September 30,						September 30,
		2011			2010			2011			2010
		(dollars in millions)
Effective Interest Rates on Securitization of
	Accounts Receivable		0.23	%		0.41	%		0.27	%		0.32	%
Net Uncollectible Accounts Receivable
	Written Off	$	11		$	9		$	28		$	16

		September 30,		December 31,
		2011		2010
		(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral
	Less Uncollectible Accounts	$	1,005	$	923
Total Principal Outstanding			750		690
Delinquent Securitized Accounts Receivable			45		50
Bad Debt Reserves Related to Securitization/Sale of Accounts Receivable			20		26
Unbilled Receivables Related to Securitization/Sale of Accounts Receivable			297		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 nine 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

			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		16	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				16,490	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
I&M		Other Long-term Debt		347	6.00	2025
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
SWEPCo		Pollution Control Bonds		41,135	4.50	2011

In October 2011, APCo remarketed $100 million of 2% Pollution Control Bonds due in 2014.

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 September 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 nine months ended September 30, 2011 are described in the following table:

									Net
									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		September 30, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,206	$	117,655	$	81,825	$	600,000
CSPCo		21,771		188,803		14,549		93,340		156,606		350,000
I&M		57,352		134,004		23,793		31,985		134,004		500,000
OPCo		51,169		245,481		17,873		128,890		223,522		600,000
PSO		96,034		255,611		41,971		85,846		105,116		300,000
SWEPCo		86,241		105,184		29,098		38,798		(41,537)		350,000

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

	Nine Months Ended September 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.55	%
Minimum Interest Rate	0.06	%	0.09	%

The average interest rates for funds borrowed from and loaned to the Utility Money Pool for the nine months ended September 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
	Nine Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.25	%	0.31	%	-	%
CSPCo	0.52	%	0.18	%	0.32	%	0.27	%
I&M	0.39	%	-	%	0.31	%	0.24	%
OPCo	0.41	%	-	%	0.30	%	0.20	%
PSO	0.41	%	0.29	%	0.26	%	0.16	%
SWEPCo	0.34	%	0.19	%	0.33	%	0.27	%

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 4.

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 September 30, 2011 and December 31, 2010 was as follows:

	September 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	113,630	$	145,515
CSPCo		194,804		175,997
I&M		128,785		123,366
OPCo		181,080		168,701
PSO		169,872		121,679
SWEPCo		178,230		135,092

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,500	$	2,949	$	7,314	$	6,725
CSPCo		3,492		3,300		8,418		8,990
I&M		1,623		1,832		4,758		5,276
OPCo		2,093		2,345		5,607		7,494
PSO		2,081		1,537		4,798		4,287
SWEPCo		1,850		1,441		4,254		4,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	307,364	$	338,446	$	958,288	$	1,097,276
CSPCo		472,335		521,030		1,253,906		1,368,343
I&M		350,108		348,039		1,016,680		984,631
OPCo		484,574		473,773		1,445,876		1,325,613
PSO		436,339		398,177		1,021,967		924,707
SWEPCo		475,219		430,270		1,165,245		1,087,515

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

									Net
									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		September 30, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,206	$	117,655	$	81,825	$	600,000
CSPCo		21,771		188,803		14,549		93,340		156,606		350,000
I&M		57,352		134,004		23,793		31,985		134,004		500,000
OPCo		51,169		245,481		17,873		128,890		223,522		600,000
PSO		96,034		255,611		41,971		85,846		105,116		300,000
SWEPCo		86,241		105,184		29,098		38,798		(41,537)		350,000

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

	Nine Months Ended September 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.55	%
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
	Nine Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.25	%	0.31	%	-	%
CSPCo	0.52	%	0.18	%	0.32	%	0.27	%
I&M	0.39	%	-	%	0.31	%	0.24	%
OPCo	0.41	%	-	%	0.30	%	0.20	%
PSO	0.41	%	0.29	%	0.26	%	0.16	%
SWEPCo	0.34	%	0.19	%	0.33	%	0.27	%

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 September 30, 2011 and December 31, 2010 was as follows:

	September 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	113,630	$	145,515
CSPCo		194,804		175,997
I&M		128,785		123,366
OPCo		181,080		168,701
PSO		169,872		121,679
SWEPCo		178,230		135,092

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,500	$	2,949	$	7,314	$	6,725
CSPCo		3,492		3,300		8,418		8,990
I&M		1,623		1,832		4,758		5,276
OPCo		2,093		2,345		5,607		7,494
PSO		2,081		1,537		4,798		4,287
SWEPCo		1,850		1,441		4,254		4,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	307,364	$	338,446	$	958,288	$	1,097,276
CSPCo		472,335		521,030		1,253,906		1,368,343
I&M		350,108		348,039		1,016,680		984,631
OPCo		484,574		473,773		1,445,876		1,325,613
PSO		436,339		398,177		1,021,967		924,707
SWEPCo		475,219		430,270		1,165,245		1,087,515

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 nine 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

			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		16	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				16,490	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
I&M		Other Long-term Debt		347	6.00	2025
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
SWEPCo		Pollution Control Bonds		41,135	4.50	2011

In October 2011, I&M retired $29 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

									Net
									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		September 30, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,206	$	117,655	$	81,825	$	600,000
CSPCo		21,771		188,803		14,549		93,340		156,606		350,000
I&M		57,352		134,004		23,793		31,985		134,004		500,000
OPCo		51,169		245,481		17,873		128,890		223,522		600,000
PSO		96,034		255,611		41,971		85,846		105,116		300,000
SWEPCo		86,241		105,184		29,098		38,798		(41,537)		350,000

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

	Nine Months Ended September 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.55	%
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
	Nine Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.25	%	0.31	%	-	%
CSPCo	0.52	%	0.18	%	0.32	%	0.27	%
I&M	0.39	%	-	%	0.31	%	0.24	%
OPCo	0.41	%	-	%	0.30	%	0.20	%
PSO	0.41	%	0.29	%	0.26	%	0.16	%
SWEPCo	0.34	%	0.19	%	0.33	%	0.27	%

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 4.

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 September 30, 2011 and December 31, 2010 was as follows:

	September 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	113,630	$	145,515
CSPCo		194,804		175,997
I&M		128,785		123,366
OPCo		181,080		168,701
PSO		169,872		121,679
SWEPCo		178,230		135,092

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,500	$	2,949	$	7,314	$	6,725
CSPCo		3,492		3,300		8,418		8,990
I&M		1,623		1,832		4,758		5,276
OPCo		2,093		2,345		5,607		7,494
PSO		2,081		1,537		4,798		4,287
SWEPCo		1,850		1,441		4,254		4,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	307,364	$	338,446	$	958,288	$	1,097,276
CSPCo		472,335		521,030		1,253,906		1,368,343
I&M		350,108		348,039		1,016,680		984,631
OPCo		484,574		473,773		1,445,876		1,325,613
PSO		436,339		398,177		1,021,967		924,707
SWEPCo		475,219		430,270		1,165,245		1,087,515

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 nine 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

			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		16	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				16,490	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
I&M		Other Long-term Debt		347	6.00	2025
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
SWEPCo		Pollution Control Bonds		41,135	4.50	2011

As of September 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

									Net
									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		September 30, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,206	$	117,655	$	81,825	$	600,000
CSPCo		21,771		188,803		14,549		93,340		156,606		350,000
I&M		57,352		134,004		23,793		31,985		134,004		500,000
OPCo		51,169		245,481		17,873		128,890		223,522		600,000
PSO		96,034		255,611		41,971		85,846		105,116		300,000
SWEPCo		86,241		105,184		29,098		38,798		(41,537)		350,000

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

	Nine Months Ended September 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.55	%
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
	Nine Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.25	%	0.31	%	-	%
CSPCo	0.52	%	0.18	%	0.32	%	0.27	%
I&M	0.39	%	-	%	0.31	%	0.24	%
OPCo	0.41	%	-	%	0.30	%	0.20	%
PSO	0.41	%	0.29	%	0.26	%	0.16	%
SWEPCo	0.34	%	0.19	%	0.33	%	0.27	%

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 4.

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 September 30, 2011 and December 31, 2010 was as follows:

	September 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	113,630	$	145,515
CSPCo		194,804		175,997
I&M		128,785		123,366
OPCo		181,080		168,701
PSO		169,872		121,679
SWEPCo		178,230		135,092

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,500	$	2,949	$	7,314	$	6,725
CSPCo		3,492		3,300		8,418		8,990
I&M		1,623		1,832		4,758		5,276
OPCo		2,093		2,345		5,607		7,494
PSO		2,081		1,537		4,798		4,287
SWEPCo		1,850		1,441		4,254		4,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	307,364	$	338,446	$	958,288	$	1,097,276
CSPCo		472,335		521,030		1,253,906		1,368,343
I&M		350,108		348,039		1,016,680		984,631
OPCo		484,574		473,773		1,445,876		1,325,613
PSO		436,339		398,177		1,021,967		924,707
SWEPCo		475,219		430,270		1,165,245		1,087,515

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 nine 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

			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		16	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				16,490	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
I&M		Other Long-term Debt		347	6.00	2025
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
SWEPCo		Pollution Control Bonds		41,135	4.50	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

									Net
									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		September 30, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,206	$	117,655	$	81,825	$	600,000
CSPCo		21,771		188,803		14,549		93,340		156,606		350,000
I&M		57,352		134,004		23,793		31,985		134,004		500,000
OPCo		51,169		245,481		17,873		128,890		223,522		600,000
PSO		96,034		255,611		41,971		85,846		105,116		300,000
SWEPCo		86,241		105,184		29,098		38,798		(41,537)		350,000

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

	Nine Months Ended September 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.55	%
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
	Nine Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.25	%	0.31	%	-	%
CSPCo	0.52	%	0.18	%	0.32	%	0.27	%
I&M	0.39	%	-	%	0.31	%	0.24	%
OPCo	0.41	%	-	%	0.30	%	0.20	%
PSO	0.41	%	0.29	%	0.26	%	0.16	%
SWEPCo	0.34	%	0.19	%	0.33	%	0.27	%

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 September 30, 2011 and December 31, 2010 was as follows:

	September 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	113,630	$	145,515
CSPCo		194,804		175,997
I&M		128,785		123,366
OPCo		181,080		168,701
PSO		169,872		121,679
SWEPCo		178,230		135,092

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,500	$	2,949	$	7,314	$	6,725
CSPCo		3,492		3,300		8,418		8,990
I&M		1,623		1,832		4,758		5,276
OPCo		2,093		2,345		5,607		7,494
PSO		2,081		1,537		4,798		4,287
SWEPCo		1,850		1,441		4,254		4,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	307,364	$	338,446	$	958,288	$	1,097,276
CSPCo		472,335		521,030		1,253,906		1,368,343
I&M		350,108		348,039		1,016,680		984,631
OPCo		484,574		473,773		1,445,876		1,325,613
PSO		436,339		398,177		1,021,967		924,707
SWEPCo		475,219		430,270		1,165,245		1,087,515

Southwestern Electric 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 nine months of 2011 are shown in the tables below:

			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		16	13.718	2026
I&M		Pollution Control Bonds		52,000	Variable	2021
I&M		Pollution Control Bonds		25,000	Variable	2019
I&M				16,490	Variable	2015
I&M				13,150	5.16	2014
I&M				15,482	5.44	2013
I&M		Other Long-term Debt		347	6.00	2025
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
SWEPCo		Pollution Control Bonds		41,135	4.50	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

									Net
									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		September 30, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,206	$	117,655	$	81,825	$	600,000
CSPCo		21,771		188,803		14,549		93,340		156,606		350,000
I&M		57,352		134,004		23,793		31,985		134,004		500,000
OPCo		51,169		245,481		17,873		128,890		223,522		600,000
PSO		96,034		255,611		41,971		85,846		105,116		300,000
SWEPCo		86,241		105,184		29,098		38,798		(41,537)		350,000

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

	Nine Months Ended September 30,
	2011		2010
Maximum Interest Rate	0.56	%	0.55	%
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
	Nine Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010

APCo	0.38	%	0.25	%	0.31	%	-	%
CSPCo	0.52	%	0.18	%	0.32	%	0.27	%
I&M	0.39	%	-	%	0.31	%	0.24	%
OPCo	0.41	%	-	%	0.30	%	0.20	%
PSO	0.41	%	0.29	%	0.26	%	0.16	%
SWEPCo	0.34	%	0.19	%	0.33	%	0.27	%

Short-term Debt

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

September 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

For a discussion of credit facilities, see “Letters of Credit” section of Note 4.

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 September 30, 2011 and December 31, 2010 was as follows:

	September 30,		December 31,
Company	2011		2010
	(in thousands)
APCo	$	113,630	$	145,515
CSPCo		194,804		175,997
I&M		128,785		123,366
OPCo		181,080		168,701
PSO		169,872		121,679
SWEPCo		178,230		135,092

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	2,500	$	2,949	$	7,314	$	6,725
CSPCo		3,492		3,300		8,418		8,990
I&M		1,623		1,832		4,758		5,276
OPCo		2,093		2,345		5,607		7,494
PSO		2,081		1,537		4,798		4,287
SWEPCo		1,850		1,441		4,254		4,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2011		2010		2011		2010
	(in thousands)
APCo	$	307,364	$	338,446	$	958,288	$	1,097,276
CSPCo		472,335		521,030		1,253,906		1,368,343
I&M		350,108		348,039		1,016,680		984,631
OPCo		484,574		473,773		1,445,876		1,325,613
PSO		436,339		398,177		1,021,967		924,707
SWEPCo		475,219		430,270		1,165,245		1,087,515