Derivatives and Hedging (Tables)

12 Months Ended

Dec. 31, 2012

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments
		Volume
			December 31,			Unit of
Primary Risk Exposure			2012		2011	Measure
		(in millions)
Commodity:
	Power		498		609	MWhs
	Coal		10		21	Tons
	Natural Gas		147		100	MMBtus
	Heating Oil and Gasoline		6		6	Gallons
	Interest Rate	$	235	$	226	USD
Interest Rate and Foreign Currency		$	1,199	$	907	USD

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
December 31, 2012
								Gross Amounts		Gross		Net Amounts of
		Risk Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)
		(in millions)
Current Risk Management Assets		$	589	$	32	$	3	$	624	$	(433)	$	191
Long-term Risk Management Assets			528		5		1		534		(166)		368
Total Assets			1,117		37		4		1,158		(599)		559
Current Risk Management Liabilities			546		43		35		624		(469)		155
Long-term Risk Management Liabilities			383		6		6		395		(181)		214
Total Liabilities			929		49		41		1,019		(650)		369
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	188	$	(12)	$	(37)	$	139	$	51	$	190
Fair Value of Derivative Instruments
December 31, 2011
								Gross Amounts		Gross		Net Amounts of
		Risk Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)
		(in millions)
Current Risk Management Assets		$	852	$	24	$	-	$	876	$	(683)	$	193
Long-term Risk Management Assets			641		15		-		656		(253)		403
Total Assets			1,493		39		-		1,532		(936)		596
Current Risk Management Liabilities			847		29		20		896		(746)		150
Long-term Risk Management Liabilities			483		15		22		520		(325)		195
Total Liabilities			1,330		44		42		1,416		(1,071)		345
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	163	$	(5)	$	(42)	$	116	$	135	$	251

(a)Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b)Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."Amounts also include de-designated risk management contracts.

(c)There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on
Risk Management Contracts
	Years Ended December 31,
Location of Gain (Loss)	2012		2011		2010
	(in millions)
Utility Operations Revenues	$	21	$	46	$	85
Other Revenues		39		20		9
Regulatory Assets (a)		(43)		(22)		(9)
Regulatory Liabilities (a)		8		(3)		38
Total Gain (Loss) on Risk Management Contracts	$	25	$	41	$	123

(a) Represents realized and unrealized gains and losses subject to regulatory accounting treatment

recorded as either current or noncurrent on the balance sheets.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2012
					Interest Rate
					and Foreign
			Commodity		Currency		Total
			(in millions)
Balance in AOCI as of December 31, 2011			$	(3)	$	(20)	$	(23)
Changes in Fair Value Recognized in AOCI				(15)		(14)		(29)
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		-		-		-
		Other Revenues		(5)		-		(5)
		Purchased Electricity for Resale		13		-		13
		Other Operation Expense		-		-		-
		Maintenance Expense		-		-		-
		Interest Expense		-		4		4
		Property, Plant and Equipment		-		-		-
		Regulatory Assets (a)		2		-		2
		Regulatory Liabilities (a)		-		-		-
Balance in AOCI as of December 31, 2012			$	(8)	$	(30)	$	(38)
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2011
					Interest Rate
					and Foreign
			Commodity		Currency		Total
			(in millions)
Balance in AOCI as of December 31, 2010			$	7	$	4	$	11
Changes in Fair Value Recognized in AOCI				(5)		(28)		(33)
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		3		-		3
		Other Revenues		(5)		-		(5)
		Purchased Electricity for Resale		(2)		-		(2)
		Other Operation Expense		(1)		-		(1)
		Maintenance Expense		(1)		-		(1)
		Interest Expense		-		4		4
		Property, Plant and Equipment		(1)		-		(1)
		Regulatory Assets (a)		2		-		2
		Regulatory Liabilities (a)		-		-		-
Balance in AOCI as of December 31, 2011			$	(3)	$	(20)	$	(23)
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2010
					Interest Rate
					and Foreign
			Commodity		Currency		Total
			(in millions)
Balance in AOCI as of December 31, 2009			$	(2)	$	(13)	$	(15)
Changes in Fair Value Recognized in AOCI				9		13		22
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		-		-		-
		Other Revenues		(7)		-		(7)
		Purchased Electricity for Resale		4		-		4
		Other Operation Expense		-		-		-
		Maintenance Expense		-		-		-
		Interest Expense		-		4		4
		Property, Plant and Equipment		-		-		-
		Regulatory Assets (a)		3		-		3
		Regulatory Liabilities (a)		-		-		-
Balance in AOCI as of December 31, 2010			$	7	$	4	$	11

(a) Represents realized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.

Impact of Cash Flow Hedges on the Balance Sheet

Impact of Cash Flow Hedges on the Balance Sheet
December 31, 2012
				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	24	$	-	$	24
Hedging Liabilities (a)			36		37		73
AOCI Gain (Loss) Net of Tax			(8)		(30)		(38)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		(8)		(4)		(12)
Impact of Cash Flow Hedges on the Balance Sheet
December 31, 2011
				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	20	$	-	$	20
Hedging Liabilities (a)			25		42		67
AOCI Gain (Loss) Net of Tax			(3)		(20)		(23)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		(3)		(2)		(5)

(a)Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on thebalance sheets.

Collateral Required Under Various Triggering Events

		December 31,
		2012		2011
		(in millions)
Liabilities for Derivative Contracts with Credit Downgrade Triggers		$	7	$	32
Amount of Collateral AEP Subsidiaries Would Have Been
	Required to Post		32		39
Amount Attributable to RTO and ISO Activities			31		38

Liabilities Subject to Cross Default Provisions

	December 31,
	2012		2011
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
Netting Arrangements	$	469	$	515
Amount of Cash Collateral Posted		8		56
Additional Settlement Liability if Cross Default Provision is Triggered		328		291

Appalachian Power Co [Member]

Notional Volume of Derivative Instruments

	Notional Volume of Derivative Instruments
	December 31, 2012
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-
	Notional Volume of Derivative Instruments
	December 31, 2011
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		169,459		109,326		229,468		39		49
	Coal		Tons		3,714		1,920		8,337		3,574		2,974
	Natural Gas		MMBtus		7,923		5,081		10,728		115		145
	Heating Oil and
		Gasoline	Gallons		1,057		525		1,254		618		569
	Interest Rate		USD	$	31,029	$	19,890	$	42,093	$	175	$	203
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	200,069

Cash Collateral Netting

	December 31,
	2012				2011
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,262	$	11,029	$	4,291	$	28,964
I&M		867		7,576		2,752		18,547
OPCo		1,774		15,500		5,810		39,183
PSO		-		-		53		130
SWEPCo		-		-		66		124

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
December 31, 2012
APCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (d)
		(in thousands)
Current Risk Management Assets		$	127,645	$	338	$	-	$	127,983	$	(97,023)	$	30,960
Long-term Risk Management Assets			60,498		215		-		60,713		(26,353)		34,360
Total Assets			188,143		553		-		188,696		(123,376)		65,320
Current Risk Management Liabilities			119,430		1,182		-		120,612		(103,914)		16,698
Long-term Risk Management Liabilities			47,281		424		-		47,705		(29,229)		18,476
Total Liabilities			166,711		1,606		-		168,317		(133,143)		35,174
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	21,432	$	(1,053)	$	-	$	20,379	$	9,767	$	30,146
Fair Value of Derivative Instruments
December 31, 2011
APCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (c)		Position (d)
		(in thousands)
Current Risk Management Assets		$	232,784	$	1,040	$	-	$	233,824	$	(194,179)	$	39,645
Long-term Risk Management Assets			99,751		90		-		99,841		(60,615)		39,226
Total Assets			332,535		1,130		-		333,665		(254,794)		78,871
Current Risk Management Liabilities			235,354		2,767		-		238,121		(211,515)		26,606
Long-term Risk Management Liabilities			82,058		350		-		82,408		(69,485)		12,923
Total Liabilities			317,412		3,117		-		320,529		(281,000)		39,529
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	15,123	$	(1,987)	$	-	$	13,136	$	26,206	$	39,342

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c)Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.

(d)There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2010
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	5,057	$	21,834	$	40,893	$	3,156	$	3,880
Sales to AEP Affiliates			(2,379)		(2,471)		5,043		(794)		(1,523)
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(372)		(186)		(5,788)		46		(2,902)
Regulatory Liabilities (a)			27,790		8,217		3,451		878		351
Total Gain (Loss) on Risk Management
	Contracts	$	30,096	$	27,394	$	43,599	$	3,286	$	(194)

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded aseither current or noncurrent on the balance sheets.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(1,310)		(987)		(2,002)		104		100
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	(644)	$	(446)	$	(912)	$	21	$	22
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(5,777)		-		-		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
Balance in AOCI as of December 31, 2012				$	2,077	$	(19,647)	$	8,095	$	6,460	$	(15,571)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(1,310)		(6,764)		(2,002)		104		(2,678)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	1,433	$	(20,093)	$	7,183	$	6,481	$	(15,549)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2011
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Changes in Fair Value Recognized in AOCI					(2,077)		(1,294)		(2,748)		108		102
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Changes in Fair Value Recognized in AOCI					(373)		(6,913)		-		(475)		(12,438)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)
Changes in Fair Value Recognized in AOCI					(2,450)		(8,207)		(2,748)		(367)		(12,336)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2010
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(743)	$	(382)	$	(742)	$	(78)	$	112
Changes in Fair Value Recognized in AOCI					(1,450)		(901)		(1,958)		77		69
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(44)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(6,450)	$	(9,514)	$	12,172	$	(521)	$	(5,047)
Changes in Fair Value Recognized in AOCI					5,042		-		-		8,813		(74)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		21
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(7,193)	$	(9,896)	$	11,430	$	(599)	$	(4,935)
Changes in Fair Value Recognized in AOCI					3,592		(901)		(1,958)		8,890		(5)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(23)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)

(a)Represents realized gains and losses subject to regulatory accounting treatment recorded as eithercurrent or noncurrent on the balance sheets.

Impact of Cash Flow Hedges on the Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	(507)	$	(1,013)		17
I&M		(355)		(1,600)		17
OPCo		(720)		1,359		17
PSO		21		759		12
SWEPCo		22		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2011
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	431	$	-	$	2,418	$	-	$	(1,309)	$	1,024
I&M		277		-		1,523		10,637		(819)		(14,465)
OPCo		584		-		3,239		-		(1,748)		9,454
PSO		-		-		107		-		(69)		7,218
SWEPCo		-		3		97		19,143		(62)		(15,462)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(1,140)	$	(1,052)
I&M		(712)		(595)
OPCo		(1,518)		1,359
PSO		(70)		759
SWEPCo		(63)		(1,864)

(a)       Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

Collateral Required Under Various Triggering Events

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2011
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	10,007	$	6,211	$	6,211
I&M		6,418		3,983		3,983
OPCo		13,550		8,410		8,410
PSO		-		856		414
SWEPCo		-		1,128		522

Liabilities Subject to Cross Default Provisions

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-
	December 31, 2011
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	76,868	$	8,107	$	27,603
I&M		59,936		5,200		28,339
OPCo		104,091		10,978		37,380
PSO		142		-		61
SWEPCo		19,322		-		19,220

Indiana Michigan Power Co [Member]

Notional Volume of Derivative Instruments

	Notional Volume of Derivative Instruments
	December 31, 2012
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-
	Notional Volume of Derivative Instruments
	December 31, 2011
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		169,459		109,326		229,468		39		49
	Coal		Tons		3,714		1,920		8,337		3,574		2,974
	Natural Gas		MMBtus		7,923		5,081		10,728		115		145
	Heating Oil and
		Gasoline	Gallons		1,057		525		1,254		618		569
	Interest Rate		USD	$	31,029	$	19,890	$	42,093	$	175	$	203
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	200,069

Cash Collateral Netting

	December 31,
	2012				2011
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,262	$	11,029	$	4,291	$	28,964
I&M		867		7,576		2,752		18,547
OPCo		1,774		15,500		5,810		39,183
PSO		-		-		53		130
SWEPCo		-		-		66		124

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
December 31, 2012
I&M
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (d)
		(in thousands)
Current Risk Management Assets		$	93,268	$	220	$	-	$	93,488	$	(66,514)	$	26,974
Long-term Risk Management Assets			41,553		148		-		41,701		(18,132)		23,569
Total Assets			134,821		368		-		135,189		(84,646)		50,543
Current Risk Management Liabilities			82,433		807		19,524		102,764		(71,247)		31,517
Long-term Risk Management Liabilities			33,714		292		-		34,006		(20,108)		13,898
Total Liabilities			116,147		1,099		19,524		136,770		(91,355)		45,415
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	18,674	$	(731)	$	(19,524)	$	(1,581)	$	6,709	$	5,128
Fair Value of Derivative Instruments
December 31, 2011
I&M
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (c)		Position (d)
		(in thousands)
Current Risk Management Assets		$	154,628	$	667	$	-	$	155,295	$	(123,143)	$	32,152
Long-term Risk Management Assets			68,047		58		-		68,105		(38,743)		29,362
Total Assets			222,675		725		-		223,400		(161,886)		61,514
Current Risk Management Liabilities			149,466		1,747		-		151,213		(134,233)		16,980
Long-term Risk Management Liabilities			52,441		224		10,637		63,302		(44,431)		18,871
Total Liabilities			201,907		1,971		10,637		214,515		(178,664)		35,851
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	20,768	$	(1,246)	$	(10,637)	$	8,885	$	16,778	$	25,663

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c)Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.

(d)There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2010
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	5,057	$	21,834	$	40,893	$	3,156	$	3,880
Sales to AEP Affiliates			(2,379)		(2,471)		5,043		(794)		(1,523)
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(372)		(186)		(5,788)		46		(2,902)
Regulatory Liabilities (a)			27,790		8,217		3,451		878		351
Total Gain (Loss) on Risk Management
	Contracts	$	30,096	$	27,394	$	43,599	$	3,286	$	(194)

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded aseither current or noncurrent on the balance sheets.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(1,310)		(987)		(2,002)		104		100
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	(644)	$	(446)	$	(912)	$	21	$	22
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(5,777)		-		-		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
Balance in AOCI as of December 31, 2012				$	2,077	$	(19,647)	$	8,095	$	6,460	$	(15,571)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(1,310)		(6,764)		(2,002)		104		(2,678)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	1,433	$	(20,093)	$	7,183	$	6,481	$	(15,549)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2011
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Changes in Fair Value Recognized in AOCI					(2,077)		(1,294)		(2,748)		108		102
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Changes in Fair Value Recognized in AOCI					(373)		(6,913)		-		(475)		(12,438)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)
Changes in Fair Value Recognized in AOCI					(2,450)		(8,207)		(2,748)		(367)		(12,336)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2010
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(743)	$	(382)	$	(742)	$	(78)	$	112
Changes in Fair Value Recognized in AOCI					(1,450)		(901)		(1,958)		77		69
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(44)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(6,450)	$	(9,514)	$	12,172	$	(521)	$	(5,047)
Changes in Fair Value Recognized in AOCI					5,042		-		-		8,813		(74)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		21
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(7,193)	$	(9,896)	$	11,430	$	(599)	$	(4,935)
Changes in Fair Value Recognized in AOCI					3,592		(901)		(1,958)		8,890		(5)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(23)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)

(a)Represents realized gains and losses subject to regulatory accounting treatment recorded as eithercurrent or noncurrent on the balance sheets.

Impact of Cash Flow Hedges on the Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	(507)	$	(1,013)		17
I&M		(355)		(1,600)		17
OPCo		(720)		1,359		17
PSO		21		759		12
SWEPCo		22		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2011
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	431	$	-	$	2,418	$	-	$	(1,309)	$	1,024
I&M		277		-		1,523		10,637		(819)		(14,465)
OPCo		584		-		3,239		-		(1,748)		9,454
PSO		-		-		107		-		(69)		7,218
SWEPCo		-		3		97		19,143		(62)		(15,462)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(1,140)	$	(1,052)
I&M		(712)		(595)
OPCo		(1,518)		1,359
PSO		(70)		759
SWEPCo		(63)		(1,864)

(a)       Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

Collateral Required Under Various Triggering Events

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2011
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	10,007	$	6,211	$	6,211
I&M		6,418		3,983		3,983
OPCo		13,550		8,410		8,410
PSO		-		856		414
SWEPCo		-		1,128		522

Liabilities Subject to Cross Default Provisions

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-
	December 31, 2011
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	76,868	$	8,107	$	27,603
I&M		59,936		5,200		28,339
OPCo		104,091		10,978		37,380
PSO		142		-		61
SWEPCo		19,322		-		19,220

Ohio Power Co [Member]

Notional Volume of Derivative Instruments

	Notional Volume of Derivative Instruments
	December 31, 2012
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-
	Notional Volume of Derivative Instruments
	December 31, 2011
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		169,459		109,326		229,468		39		49
	Coal		Tons		3,714		1,920		8,337		3,574		2,974
	Natural Gas		MMBtus		7,923		5,081		10,728		115		145
	Heating Oil and
		Gasoline	Gallons		1,057		525		1,254		618		569
	Interest Rate		USD	$	31,029	$	19,890	$	42,093	$	175	$	203
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	200,069

Cash Collateral Netting

	December 31,
	2012				2011
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,262	$	11,029	$	4,291	$	28,964
I&M		867		7,576		2,752		18,547
OPCo		1,774		15,500		5,810		39,183
PSO		-		-		53		130
SWEPCo		-		-		66		124

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
December 31, 2012
OPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (d)
		(in thousands)
Current Risk Management Assets		$	183,064	$	464	$	-	$	183,528	$	(139,215)	$	44,313
Long-term Risk Management Assets			85,023		303		-		85,326		(37,038)		48,288
Total Assets			268,087		767		-		268,854		(176,253)		92,601
Current Risk Management Liabilities			171,397		1,658		-		173,055		(148,900)		24,155
Long-term Risk Management Liabilities			66,448		596		-		67,044		(41,079)		25,965
Total Liabilities			237,845		2,254		-		240,099		(189,979)		50,120
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	30,242	$	(1,487)	$	-	$	28,755	$	13,726	$	42,481
Fair Value of Derivative Instruments
December 31, 2011
OPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (c)		Position (d)
		(in thousands)
Current Risk Management Assets		$	325,904	$	1,409	$	-	$	327,313	$	(273,020)	$	54,293
Long-term Risk Management Assets			136,519		122		-		136,641		(83,027)		53,614
Total Assets			462,423		1,531		-		463,954		(356,047)		107,907
Current Risk Management Liabilities			329,307		3,712		-		333,019		(296,458)		36,561
Long-term Risk Management Liabilities			112,454		474		-		112,928		(95,038)		17,890
Total Liabilities			441,761		4,186		-		445,947		(391,496)		54,451
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	20,662	$	(2,655)	$	-	$	18,007	$	35,449	$	53,456

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c)Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.

(d)There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2010
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	5,057	$	21,834	$	40,893	$	3,156	$	3,880
Sales to AEP Affiliates			(2,379)		(2,471)		5,043		(794)		(1,523)
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(372)		(186)		(5,788)		46		(2,902)
Regulatory Liabilities (a)			27,790		8,217		3,451		878		351
Total Gain (Loss) on Risk Management
	Contracts	$	30,096	$	27,394	$	43,599	$	3,286	$	(194)

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded aseither current or noncurrent on the balance sheets.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(1,310)		(987)		(2,002)		104		100
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	(644)	$	(446)	$	(912)	$	21	$	22
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(5,777)		-		-		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
Balance in AOCI as of December 31, 2012				$	2,077	$	(19,647)	$	8,095	$	6,460	$	(15,571)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(1,310)		(6,764)		(2,002)		104		(2,678)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	1,433	$	(20,093)	$	7,183	$	6,481	$	(15,549)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2011
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Changes in Fair Value Recognized in AOCI					(2,077)		(1,294)		(2,748)		108		102
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Changes in Fair Value Recognized in AOCI					(373)		(6,913)		-		(475)		(12,438)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)
Changes in Fair Value Recognized in AOCI					(2,450)		(8,207)		(2,748)		(367)		(12,336)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2010
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(743)	$	(382)	$	(742)	$	(78)	$	112
Changes in Fair Value Recognized in AOCI					(1,450)		(901)		(1,958)		77		69
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(44)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(6,450)	$	(9,514)	$	12,172	$	(521)	$	(5,047)
Changes in Fair Value Recognized in AOCI					5,042		-		-		8,813		(74)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		21
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(7,193)	$	(9,896)	$	11,430	$	(599)	$	(4,935)
Changes in Fair Value Recognized in AOCI					3,592		(901)		(1,958)		8,890		(5)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(23)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)

(a)Represents realized gains and losses subject to regulatory accounting treatment recorded as eithercurrent or noncurrent on the balance sheets.

Impact of Cash Flow Hedges on the Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	(507)	$	(1,013)		17
I&M		(355)		(1,600)		17
OPCo		(720)		1,359		17
PSO		21		759		12
SWEPCo		22		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2011
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	431	$	-	$	2,418	$	-	$	(1,309)	$	1,024
I&M		277		-		1,523		10,637		(819)		(14,465)
OPCo		584		-		3,239		-		(1,748)		9,454
PSO		-		-		107		-		(69)		7,218
SWEPCo		-		3		97		19,143		(62)		(15,462)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(1,140)	$	(1,052)
I&M		(712)		(595)
OPCo		(1,518)		1,359
PSO		(70)		759
SWEPCo		(63)		(1,864)

(a)       Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

Collateral Required Under Various Triggering Events

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2011
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	10,007	$	6,211	$	6,211
I&M		6,418		3,983		3,983
OPCo		13,550		8,410		8,410
PSO		-		856		414
SWEPCo		-		1,128		522

Liabilities Subject to Cross Default Provisions

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-
	December 31, 2011
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	76,868	$	8,107	$	27,603
I&M		59,936		5,200		28,339
OPCo		104,091		10,978		37,380
PSO		142		-		61
SWEPCo		19,322		-		19,220

Public Service Co of Oklahoma [Member]

Notional Volume of Derivative Instruments

	Notional Volume of Derivative Instruments
	December 31, 2012
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-
	Notional Volume of Derivative Instruments
	December 31, 2011
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		169,459		109,326		229,468		39		49
	Coal		Tons		3,714		1,920		8,337		3,574		2,974
	Natural Gas		MMBtus		7,923		5,081		10,728		115		145
	Heating Oil and
		Gasoline	Gallons		1,057		525		1,254		618		569
	Interest Rate		USD	$	31,029	$	19,890	$	42,093	$	175	$	203
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	200,069

Cash Collateral Netting

	December 31,
	2012				2011
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,262	$	11,029	$	4,291	$	28,964
I&M		867		7,576		2,752		18,547
OPCo		1,774		15,500		5,810		39,183
PSO		-		-		53		130
SWEPCo		-		-		66		124

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
December 31, 2012
PSO
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (d)
		(in thousands)
Current Risk Management Assets		$	1,657	$	42	$	-	$	1,699	$	(1,190)	$	509
Long-term Risk Management Assets			-		-		-		-		31		31
Total Assets			1,657		42		-		1,699		(1,159)		540
Current Risk Management Liabilities			7,021		17		-		7,038		(1,190)		5,848
Long-term Risk Management Liabilities			-		-		-		-		31		31
Total Liabilities			7,021		17		-		7,038		(1,159)		5,879
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(5,364)	$	25	$	-	$	(5,339)	$	-	$	(5,339)
Fair Value of Derivative Instruments
December 31, 2011
PSO
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (c)		Position (d)
		(in thousands)
Current Risk Management Assets		$	6,980	$	-	$	-	$	6,980	$	(6,415)	$	565
Long-term Risk Management Assets			914		-		-		914		(600)		314
Total Assets			7,894		-		-		7,894		(7,015)		879
Current Risk Management Liabilities			7,665		107		-		7,772		(6,492)		1,280
Long-term Risk Management Liabilities			1,930		-		-		1,930		(600)		1,330
Total Liabilities			9,595		107		-		9,702		(7,092)		2,610
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(1,701)	$	(107)	$	-	$	(1,808)	$	77	$	(1,731)

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c)Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.

(d)There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2010
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	5,057	$	21,834	$	40,893	$	3,156	$	3,880
Sales to AEP Affiliates			(2,379)		(2,471)		5,043		(794)		(1,523)
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(372)		(186)		(5,788)		46		(2,902)
Regulatory Liabilities (a)			27,790		8,217		3,451		878		351
Total Gain (Loss) on Risk Management
	Contracts	$	30,096	$	27,394	$	43,599	$	3,286	$	(194)

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded aseither current or noncurrent on the balance sheets.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(1,310)		(987)		(2,002)		104		100
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	(644)	$	(446)	$	(912)	$	21	$	22
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(5,777)		-		-		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
Balance in AOCI as of December 31, 2012				$	2,077	$	(19,647)	$	8,095	$	6,460	$	(15,571)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(1,310)		(6,764)		(2,002)		104		(2,678)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	1,433	$	(20,093)	$	7,183	$	6,481	$	(15,549)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2011
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Changes in Fair Value Recognized in AOCI					(2,077)		(1,294)		(2,748)		108		102
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Changes in Fair Value Recognized in AOCI					(373)		(6,913)		-		(475)		(12,438)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)
Changes in Fair Value Recognized in AOCI					(2,450)		(8,207)		(2,748)		(367)		(12,336)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2010
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(743)	$	(382)	$	(742)	$	(78)	$	112
Changes in Fair Value Recognized in AOCI					(1,450)		(901)		(1,958)		77		69
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(44)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(6,450)	$	(9,514)	$	12,172	$	(521)	$	(5,047)
Changes in Fair Value Recognized in AOCI					5,042		-		-		8,813		(74)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		21
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(7,193)	$	(9,896)	$	11,430	$	(599)	$	(4,935)
Changes in Fair Value Recognized in AOCI					3,592		(901)		(1,958)		8,890		(5)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(23)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)

(a)Represents realized gains and losses subject to regulatory accounting treatment recorded as eithercurrent or noncurrent on the balance sheets.

Impact of Cash Flow Hedges on the Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	(507)	$	(1,013)		17
I&M		(355)		(1,600)		17
OPCo		(720)		1,359		17
PSO		21		759		12
SWEPCo		22		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2011
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	431	$	-	$	2,418	$	-	$	(1,309)	$	1,024
I&M		277		-		1,523		10,637		(819)		(14,465)
OPCo		584		-		3,239		-		(1,748)		9,454
PSO		-		-		107		-		(69)		7,218
SWEPCo		-		3		97		19,143		(62)		(15,462)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(1,140)	$	(1,052)
I&M		(712)		(595)
OPCo		(1,518)		1,359
PSO		(70)		759
SWEPCo		(63)		(1,864)

(a)       Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

Collateral Required Under Various Triggering Events

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2011
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	10,007	$	6,211	$	6,211
I&M		6,418		3,983		3,983
OPCo		13,550		8,410		8,410
PSO		-		856		414
SWEPCo		-		1,128		522

Liabilities Subject to Cross Default Provisions

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-
	December 31, 2011
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	76,868	$	8,107	$	27,603
I&M		59,936		5,200		28,339
OPCo		104,091		10,978		37,380
PSO		142		-		61
SWEPCo		19,322		-		19,220

Southwestern Electric Power Co [Member]

Notional Volume of Derivative Instruments

	Notional Volume of Derivative Instruments
	December 31, 2012
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-
	Notional Volume of Derivative Instruments
	December 31, 2011
	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		169,459		109,326		229,468		39		49
	Coal		Tons		3,714		1,920		8,337		3,574		2,974
	Natural Gas		MMBtus		7,923		5,081		10,728		115		145
	Heating Oil and
		Gasoline	Gallons		1,057		525		1,254		618		569
	Interest Rate		USD	$	31,029	$	19,890	$	42,093	$	175	$	203
Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	200,069

Cash Collateral Netting

	December 31,
	2012				2011
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,262	$	11,029	$	4,291	$	28,964
I&M		867		7,576		2,752		18,547
OPCo		1,774		15,500		5,810		39,183
PSO		-		-		53		130
SWEPCo		-		-		66		124

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
December 31, 2012
SWEPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (d)
		(in thousands)
Current Risk Management Assets		$	2,804	$	41	$	-	$	2,845	$	(2,150)	$	695
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			2,804		41		-		2,845		(2,150)		695
Current Risk Management Liabilities			3,261		17		-		3,278		(2,150)		1,128
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			3,261		17		-		3,278		(2,150)		1,128
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(457)	$	24	$	-	$	(433)	$	-	$	(433)
Fair Value of Derivative Instruments
December 31, 2011
SWEPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (c)		Position (d)
		(in thousands)
Current Risk Management Assets		$	6,327	$	-	$	3	$	6,330	$	(5,885)	$	445
Long-term Risk Management Assets			818		-		-		818		(536)		282
Total Assets			7,145		-		3		7,148		(6,421)		727
Current Risk Management Liabilities			11,062		97		19,143		30,302		(5,943)		24,359
Long-term Risk Management Liabilities			757		-		-		757		(536)		221
Total Liabilities			11,819		97		19,143		31,059		(6,479)		24,580
Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(4,674)	$	(97)	$	(19,140)	$	(23,911)	$	58	$	(23,853)

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c)Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.

(d)There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on Risk Management Contracts

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)
Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2010
Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	5,057	$	21,834	$	40,893	$	3,156	$	3,880
Sales to AEP Affiliates			(2,379)		(2,471)		5,043		(794)		(1,523)
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(372)		(186)		(5,788)		46		(2,902)
Regulatory Liabilities (a)			27,790		8,217		3,451		878		351
Total Gain (Loss) on Risk Management
	Contracts	$	30,096	$	27,394	$	43,599	$	3,286	$	(194)

(a)Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded aseither current or noncurrent on the balance sheets.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(1,310)		(987)		(2,002)		104		100
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	(644)	$	(446)	$	(912)	$	21	$	22
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(5,777)		-		-		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
Balance in AOCI as of December 31, 2012				$	2,077	$	(19,647)	$	8,095	$	6,460	$	(15,571)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(1,310)		(6,764)		(2,002)		104		(2,678)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		(16)		(43)		(109)		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			440		1,151		3,002		-		-
		Other Operation Expense			(25)		(14)		(35)		(14)		(11)
		Maintenance Expense			-		(2)		(5)		1		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,053		595		(1,363)		(758)		2,669
		Property, Plant and Equipment			(14)		(10)		(15)		(1)		(5)
		Regulatory Assets (a)			1,590		278		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2012				$	1,433	$	(20,093)	$	7,183	$	6,481	$	(15,549)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2011
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Changes in Fair Value Recognized in AOCI					(2,077)		(1,294)		(2,748)		108		102
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Changes in Fair Value Recognized in AOCI					(373)		(6,913)		-		(475)		(12,438)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		-
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)
Changes in Fair Value Recognized in AOCI					(2,450)		(8,207)		(2,748)		(367)		(12,336)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		249		544		1,457		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		-		-		-
		Purchased Electricity for Resale			62		79		425		-		-
		Other Operation Expense			(95)		(71)		(160)		(93)		(93)
		Maintenance Expense			(169)		(64)		(141)		(62)		(65)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,180		955		(1,363)		(713)		1,248
		Property, Plant and Equipment			(175)		(90)		(217)		(110)		(88)
		Regulatory Assets (a)			1,169		255		-		-		-
		Regulatory Liabilities (a)			-		-		-		-		-
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
Year Ended December 31, 2010
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(743)	$	(382)	$	(742)	$	(78)	$	112
Changes in Fair Value Recognized in AOCI					(1,450)		(901)		(1,958)		77		69
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(44)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(273)	$	(178)	$	(364)	$	88	$	82
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(6,450)	$	(9,514)	$	12,172	$	(521)	$	(5,047)
Changes in Fair Value Recognized in AOCI					5,042		-		-		8,813		(74)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Other Operation Expense			-		-		-		-		21
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
Balance in AOCI as of December 31, 2010				$	217	$	(8,507)	$	10,813	$	8,406	$	(4,272)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2009				$	(7,193)	$	(9,896)	$	11,430	$	(599)	$	(4,935)
Changes in Fair Value Recognized in AOCI					3,592		(901)		(1,958)		8,890		(5)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission and
			Distribution Revenues		51		87		229		-		-
		Fuel and Other Consumables Used for
			Electric Generation		-		-		(13)		197		-
		Purchased Electricity for Resale			393		895		2,338		-		-
		Other Operation Expense			(43)		(31)		(72)		(39)		(23)
		Maintenance Expense			(70)		(28)		(54)		(24)		(23)
		Depreciation and Amortization
			Expense		-		-		4		-		-
		Interest Expense			1,625		1,007		(1,363)		114		828
		Property, Plant and Equipment			(71)		(36)		(87)		(45)		(32)
		Regulatory Assets (a)			1,660		218		-		-		-
		Regulatory Liabilities (a)			-		-		(5)		-		-
Balance in AOCI as of December 31, 2010				$	(56)	$	(8,685)	$	10,449	$	8,494	$	(4,190)

(a)Represents realized gains and losses subject to regulatory accounting treatment recorded as eithercurrent or noncurrent on the balance sheets.

Impact of Cash Flow Hedges on the Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	(507)	$	(1,013)		17
I&M		(355)		(1,600)		17
OPCo		(720)		1,359		17
PSO		21		759		12
SWEPCo		22		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2011
	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	431	$	-	$	2,418	$	-	$	(1,309)	$	1,024
I&M		277		-		1,523		10,637		(819)		(14,465)
OPCo		584		-		3,239		-		(1,748)		9,454
PSO		-		-		107		-		(69)		7,218
SWEPCo		-		3		97		19,143		(62)		(15,462)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(1,140)	$	(1,052)
I&M		(712)		(595)
OPCo		(1,518)		1,359
PSO		(70)		759
SWEPCo		(63)		(1,864)

(a)       Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

Collateral Required Under Various Triggering Events

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2011
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	10,007	$	6,211	$	6,211
I&M		6,418		3,983		3,983
OPCo		13,550		8,410		8,410
PSO		-		856		414
SWEPCo		-		1,128		522

Liabilities Subject to Cross Default Provisions

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-
	December 31, 2011
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	76,868	$	8,107	$	27,603
I&M		59,936		5,200		28,339
OPCo		104,091		10,978		37,380
PSO		142		-		61
SWEPCo		19,322		-		19,220