Comprehensive Income

9 Months Ended

Sep. 30, 2013

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and nine months endedSeptember 30, 2013. All amounts in the following tablesare presented net of related income taxes.

Changes in Accumulated Other Comprehensive Income (Loss) by Component
For the Three Months Ended September 30, 2013
		Cash Flow Hedges
				Interest Rate and		Securities		Pension
		Commodity		Foreign Currency		Available for Sale		and OPEB		Total
		(in millions)
Balance in AOCI as of June 30, 2013		$	1	$	(25)	$	5	$	(294)	$	(313)
Change in Fair Value Recognized in AOCI			1		-		1		-		2
Amounts Reclassified from AOCI			(3)		1		-		7		5
Net Current Period Other
	Comprehensive Income		(2)		1		1		7		7
Balance in AOCI as of September 30, 2013		$	(1)	$	(24)	$	6	$	(287)	$	(306)

Changes in Accumulated Other Comprehensive Income (Loss) by Component
For the Nine Months Ended September 30, 2013
		Cash Flow Hedges
				Interest Rate and		Securities		Pension
		Commodity		Foreign Currency		Available for Sale		and OPEB		Total
		(in millions)
Balance in AOCI as of December 31, 2012		$	(8)	$	(30)	$	4	$	(303)	$	(337)
Change in Fair Value Recognized in AOCI			11		2		2		-		15
Amounts Reclassified from AOCI			(4)		4		-		16		16
Net Current Period Other
	Comprehensive Income		7		6		2		16		31
Balance in AOCI as of September 30, 2013		$	(1)	$	(24)	$	6	$	(287)	$	(306)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and nine months endedSeptember 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

Reclassifications from Accumulated Other Comprehensive Income (Loss)
For the Three Months Ended September 30, 2013
		Amount of
		(Gain) Loss
		Reclassified
		from AOCI
Gains and Losses on Cash Flow Hedges		(in millions)
Commodity:
	Utility Operations Revenues	$	(1)
	Other Revenues		(3)
	Purchased Electricity for Resale		(1)
	Property, Plant and Equipment		-
	Regulatory Assets/(Liabilities), Net (a)		-
Subtotal - Commodity			(5)
Interest Rate and Foreign Currency:
	Interest Expense		2
Subtotal - Interest Rate and Foreign Currency			2
Reclassifications from AOCI, before Income Tax (Expense) Credit			(3)
Income Tax (Expense) Credit			(1)
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(2)
Gains and Losses on Securities Available for Sale
Interest Income			-
Interest Expense			-
Reclassifications from AOCI, before Income Tax (Expense) Credit			-
Income Tax (Expense) Credit			-
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			-
Amortization of Pension and OPEB
Prior Service Cost (Credit)			(7)
Actuarial (Gains)/Losses			18
Reclassifications from AOCI, before Income Tax (Expense) Credit			11
Income Tax (Expense) Credit			4
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			7
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	5

Reclassifications from Accumulated Other Comprehensive Income (Loss)
For the Nine Months Ended September 30, 2013
		Amount of
		(Gain) Loss
		Reclassified
		from AOCI
Gains and Losses on Cash Flow Hedges		(in millions)
Commodity:
	Utility Operations Revenues	$	(1)
	Other Revenues		(8)
	Purchased Electricity for Resale		3
	Property, Plant and Equipment		-
	Regulatory Assets/(Liabilities), Net (a)		-
Subtotal - Commodity			(6)
Interest Rate and Foreign Currency:
	Interest Expense		6
Subtotal - Interest Rate and Foreign Currency			6
Reclassifications from AOCI, before Income Tax (Expense) Credit			-
Income Tax (Expense) Credit			-
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			-
Gains and Losses on Securities Available for Sale
Interest Income			-
Interest Expense			-
Reclassifications from AOCI, before Income Tax (Expense) Credit			-
Income Tax (Expense) Credit			-
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			-
Amortization of Pension and OPEB
Prior Service Cost (Credit)			(16)
Actuarial (Gains)/Losses			41
Reclassifications from AOCI, before Income Tax (Expense) Credit			25
Income Tax (Expense) Credit			9
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			16
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	16

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

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and nine months endedSeptember 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended September 30, 2012
					Interest Rate
					and Foreign
			Commodity		Currency		Total
			(in millions)
Balance in AOCI as of June 30, 2012			$	(14)	$	(30)	$	(44)
Changes in Fair Value Recognized in AOCI				16		(3)		13
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		-		-		-
		Other Revenues		(1)		-		(1)
		Purchased Electricity for Resale		-		-		-
		Interest Expense		-		1		1
		Regulatory Assets (a)		-		-		-
Balance in AOCI as of September 30, 2012			$	1	$	(32)	$	(31)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Nine Months Ended September 30, 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				(7)		(15)		(22)
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		-		-		-
		Other Revenues		(4)		-		(4)
		Purchased Electricity for Resale		13		-		13
		Interest Expense		-		3		3
		Regulatory Assets (a)		2		-		2
Balance in AOCI as of September 30, 2012			$	1	$	(32)	$	(31)

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

The following tables provide details of changes in unrealized gains and losses related to Securities Available for Sale and the reasons for changes for the three and nine months endedSeptember 30,2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Securities Available for Sale
For the Three Months Ended September 30, 2012
		(in millions)
Balance in AOCI as of June 30, 2012		$	3
Changes in Fair Value Recognized in AOCI			1
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:
	Interest Income		-
Balance in AOCI as of September 30, 2012		$	4

Total Accumulated Other Comprehensive Income (Loss) Activity for Securities Available for Sale
For the Nine Months Ended September 30, 2012
		(in millions)
Balance in AOCI as of December 31, 2011		$	2
Changes in Fair Value Recognized in AOCI			2
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:
	Interest Income		-
Balance in AOCI as of September 30, 2012		$	4

Appalachian Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and nine months endedSeptember 30, 2013. All amounts in the following tablesare presented net of related income taxes.

APCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of June 30, 2013		$	197	$	2,583	$	(30,615)	$	(27,835)
	Change in Fair Value Recognized in AOCI			(47)		-		-		(47)
	Amounts Reclassified from AOCI			(184)		253		359		428
	Net Current Period Other
		Comprehensive Income		(231)		253		359		381
	Balance in AOCI as of September 30, 2013		$	(34)	$	2,836	$	(30,256)	$	(27,454)

APCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Nine Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	(644)	$	2,077	$	(31,331)	$	(29,898)
	Change in Fair Value Recognized in AOCI			684		-		-		684
	Amounts Reclassified from AOCI			(74)		759		1,075		1,760
	Net Current Period Other
		Comprehensive Income		610		759		1,075		2,444
	Balance in AOCI as of September 30, 2013		$	(34)	$	2,836	$	(30,256)	$	(27,454)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and nine months endedSeptember 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

APCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	(75)
		Purchased Electricity for Resale		21
		Other Operation Expense		(14)
		Maintenance Expense		(11)
		Property, Plant and Equipment		(15)
		Regulatory Assets/(Liabilities), Net (a)		(190)
	Subtotal - Commodity			(284)
	Interest Rate and Foreign Currency:
		Interest Expense		390
	Subtotal - Interest Rate and Foreign Currency			390
	Reclassifications from AOCI, before Income Tax (Expense) Credit			106
	Income Tax (Expense) Credit			37
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			69
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(1,282)
	Actuarial (Gains)/Losses			1,834
	Reclassifications from AOCI, before Income Tax (Expense) Credit			552
	Income Tax (Expense) Credit			193
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			359
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	428

APCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Nine Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	(53)
		Purchased Electricity for Resale		47
		Other Operation Expense		(38)
		Maintenance Expense		(29)
		Property, Plant and Equipment		(34)
		Regulatory Assets/(Liabilities), Net (a)		(9)
	Subtotal - Commodity			(116)
	Interest Rate and Foreign Currency:
		Interest Expense		1,169
	Subtotal - Interest Rate and Foreign Currency			1,169
	Reclassifications from AOCI, before Income Tax (Expense) Credit			1,053
	Income Tax (Expense) Credit			368
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			685
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(3,847)
	Actuarial (Gains)/Losses			5,501
	Reclassifications from AOCI, before Income Tax (Expense) Credit			1,654
	Income Tax (Expense) Credit			579
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			1,075
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	1,760

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

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and nine months endedSeptember 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended September 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Changes in Fair Value Recognized in AOCI					1,302		887		1,915		126		123
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Changes in Fair Value Recognized in AOCI					-		(1,542)		1		1		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)
Changes in Fair Value Recognized in AOCI					1,302		(655)		1,916		127		122
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Nine Months Ended September 30, 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					(946)		(741)		(1,487)		110		106
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
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					-		(6,390)		1		1		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
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					(946)		(7,131)		(1,486)		111		(2,672)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

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

Indiana Michigan Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and nine months endedSeptember 30, 2013. All amounts in the following tablesare presented net of related income taxes.

I&M
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of June 30, 2013		$	147	$	(16,796)	$	(8,439)	$	(25,088)
	Change in Fair Value Recognized in AOCI			(49)		-		-		(49)
	Amounts Reclassified from AOCI			(117)		410		174		467
	Net Current Period Other
		Comprehensive Income		(166)		410		174		418
	Balance in AOCI as of September 30, 2013		$	(19)	$	(16,386)	$	(8,265)	$	(24,670)

I&M
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Nine Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	(446)	$	(19,647)	$	(8,790)	$	(28,883)
	Change in Fair Value Recognized in AOCI			443		2,248		-		2,691
	Amounts Reclassified from AOCI			(16)		1,013		525		1,522
	Net Current Period Other
		Comprehensive Income		427		3,261		525		4,213
	Balance in AOCI as of September 30, 2013		$	(19)	$	(16,386)	$	(8,265)	$	(24,670)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and nine months endedSeptember 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

I&M
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	(173)
		Purchased Electricity for Resale		47
		Other Operation Expense		(8)
		Maintenance Expense		(5)
		Property, Plant and Equipment		(10)
		Regulatory Assets/(Liabilities), Net (a)		(31)
	Subtotal - Commodity			(180)
	Interest Rate and Foreign Currency:
		Interest Expense		631
	Subtotal - Interest Rate and Foreign Currency			631
	Reclassifications from AOCI, before Income Tax (Expense) Credit			451
	Income Tax (Expense) Credit			158
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			293
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(199)
	Actuarial (Gains)/Losses			467
	Reclassifications from AOCI, before Income Tax (Expense) Credit			268
	Income Tax (Expense) Credit			94
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			174
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	467

I&M
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Nine Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	(89)
		Purchased Electricity for Resale		115
		Other Operation Expense		(23)
		Maintenance Expense		(14)
		Property, Plant and Equipment		(20)
		Regulatory Assets/(Liabilities), Net (a)		7
	Subtotal - Commodity			(24)
	Interest Rate and Foreign Currency:
		Interest Expense		1,558
	Subtotal - Interest Rate and Foreign Currency			1,558
	Reclassifications from AOCI, before Income Tax (Expense) Credit			1,534
	Income Tax (Expense) Credit			537
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			997
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(596)
	Actuarial (Gains)/Losses			1,404
	Reclassifications from AOCI, before Income Tax (Expense) Credit			808
	Income Tax (Expense) Credit			283
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			525
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	1,522

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

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and nine months endedSeptember 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended September 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Changes in Fair Value Recognized in AOCI					1,302		887		1,915		126		123
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Changes in Fair Value Recognized in AOCI					-		(1,542)		1		1		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)
Changes in Fair Value Recognized in AOCI					1,302		(655)		1,916		127		122
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Nine Months Ended September 30, 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					(946)		(741)		(1,487)		110		106
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
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					-		(6,390)		1		1		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
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					(946)		(7,131)		(1,486)		111		(2,672)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

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

Ohio Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and nine months endedSeptember 30, 2013. All amounts in the following tablesare presented net of related income taxes.

OPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of June 30, 2013		$	289	$	7,415	$	(166,369)	$	(158,665)
	Distribution of Cook Coal Terminal to Parent			-		-		19,652		19,652
	Change in Fair Value Recognized in AOCI			(86)		-		-		(86)
	Amounts Reclassified from AOCI			(250)		(339)		2,985		2,396
	Net Current Period Other
		Comprehensive Income		(336)		(339)		2,985		2,310
	Balance in AOCI as of September 30, 2013		$	(47)	$	7,076	$	(143,732)	$	(136,703)

OPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Nine Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	(912)	$	8,095	$	(172,908)	$	(165,725)
	Distribution of Cook Coal Terminal to Parent			-		-		19,652		19,652
	Change in Fair Value Recognized in AOCI			907		-		-		907
	Amounts Reclassified from AOCI			(42)		(1,019)		9,524		8,463
	Net Current Period Other
		Comprehensive Income		865		(1,019)		9,524		9,370
	Balance in AOCI as of September 30, 2013		$	(47)	$	7,076	$	(143,732)	$	(136,703)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and nine months endedSeptember 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

OPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	(461)
		Purchased Electricity for Resale		129
		Other Operation Expense		(20)
		Maintenance Expense		(11)
		Property, Plant and Equipment		(21)
	Subtotal - Commodity			(384)
	Interest Rate and Foreign Currency:
		Depreciation and Amortization Expense		2
		Interest Expense		(524)
	Subtotal - Interest Rate and Foreign Currency			(522)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(906)
	Income Tax (Expense) Credit			(317)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(589)
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(1,451)
	Actuarial (Gains)/Losses			6,044
	Reclassifications from AOCI, before Income Tax (Expense) Credit			4,593
	Income Tax (Expense) Credit			1,608
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			2,985
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	2,396

OPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Nine Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	(246)
		Purchased Electricity for Resale		309
		Other Operation Expense		(57)
		Maintenance Expense		(26)
		Property, Plant and Equipment		(44)
	Subtotal - Commodity			(64)
	Interest Rate and Foreign Currency:
		Depreciation and Amortization Expense		5
		Interest Expense		(1,573)
	Subtotal - Interest Rate and Foreign Currency			(1,568)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(1,632)
	Income Tax (Expense) Credit			(571)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(1,061)
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(4,388)
	Actuarial (Gains)/Losses			19,040
	Reclassifications from AOCI, before Income Tax (Expense) Credit			14,652
	Income Tax (Expense) Credit			5,128
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			9,524
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	8,463

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and nine months endedSeptember 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended September 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Changes in Fair Value Recognized in AOCI					1,302		887		1,915		126		123
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Changes in Fair Value Recognized in AOCI					-		(1,542)		1		1		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)
Changes in Fair Value Recognized in AOCI					1,302		(655)		1,916		127		122
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Nine Months Ended September 30, 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					(946)		(741)		(1,487)		110		106
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
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					-		(6,390)		1		1		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
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					(946)		(7,131)		(1,486)		111		(2,672)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

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

Public Service Co Of Oklahoma [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and nine months endedSeptember 30, 2013. All amounts in the following tablesare presented net of related income taxes.

PSO
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and
			Commodity		Foreign Currency		Total
			(in thousands)
	Balance in AOCI as of June 30, 2013		$	(21)	$	6,081	$	6,060
	Change in Fair Value Recognized in AOCI			32		-		32
	Amounts Reclassified from AOCI			(14)		(190)		(204)
	Net Current Period Other
		Comprehensive Income		18		(190)		(172)
	Balance in AOCI as of September 30, 2013		$	(3)	$	5,891	$	5,888

PSO
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Nine Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and
			Commodity		Foreign Currency		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	21	$	6,460	$	6,481
	Change in Fair Value Recognized in AOCI			7		1		8
	Amounts Reclassified from AOCI			(31)		(570)		(601)
	Net Current Period Other
		Comprehensive Income		(24)		(569)		(593)
	Balance in AOCI as of September 30, 2013		$	(3)	$	5,891	$	5,888

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and nine months endedSeptember 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

PSO
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(10)
		Maintenance Expense		(5)
		Property, Plant and Equipment		(7)
	Subtotal - Commodity			(22)
	Interest Rate and Foreign Currency:
		Interest Expense		(292)
	Subtotal - Interest Rate and Foreign Currency			(292)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(314)
	Income Tax (Expense) Credit			(110)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	(204)

PSO
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Nine Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(25)
		Maintenance Expense		(9)
		Property, Plant and Equipment		(14)
	Subtotal - Commodity			(48)
	Interest Rate and Foreign Currency:
		Interest Expense		(876)
	Subtotal - Interest Rate and Foreign Currency			(876)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(924)
	Income Tax (Expense) Credit			(323)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	(601)

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and nine months endedSeptember 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended September 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Changes in Fair Value Recognized in AOCI					1,302		887		1,915		126		123
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Changes in Fair Value Recognized in AOCI					-		(1,542)		1		1		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)
Changes in Fair Value Recognized in AOCI					1,302		(655)		1,916		127		122
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Nine Months Ended September 30, 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					(946)		(741)		(1,487)		110		106
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
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					-		(6,390)		1		1		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
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					(946)		(7,131)		(1,486)		111		(2,672)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

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

Southwestern Electric Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and nine months endedSeptember 30, 2013. All amounts in the following tablesare presented net of related income taxes.

SWEPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of June 30, 2013		$	(26)	$	(14,437)	$	(2,438)	$	(16,901)
	Change in Fair Value Recognized in AOCI			40		-		-		40
	Amounts Reclassified from AOCI			(17)		566		(64)		485
	Net Current Period Other
		Comprehensive Income		23		566		(64)		525
	Balance in AOCI as of September 30, 2013		$	(3)	$	(13,871)	$	(2,502)	$	(16,376)

SWEPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Nine Months Ended September 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	22	$	(15,571)	$	(2,311)	$	(17,860)
	Change in Fair Value Recognized in AOCI			13		-		-		13
	Amounts Reclassified from AOCI			(38)		1,700		(191)		1,471
	Net Current Period Other
		Comprehensive Income		(25)		1,700		(191)		1,484
	Balance in AOCI as of September 30, 2013		$	(3)	$	(13,871)	$	(2,502)	$	(16,376)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and nine months endedSeptember 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

SWEPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(12)
		Maintenance Expense		(7)
		Property, Plant and Equipment		(8)
	Subtotal - Commodity			(27)
	Interest Rate and Foreign Currency:
		Interest Expense		872
	Subtotal - Interest Rate and Foreign Currency			872
	Reclassifications from AOCI, before Income Tax (Expense) Credit			845
	Income Tax (Expense) Credit			296
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			549
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(446)
	Actuarial (Gains)/Losses			348
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(98)
	Income Tax (Expense) Credit			(34)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(64)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	485

SWEPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Nine Months Ended September 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(28)
		Maintenance Expense		(14)
		Property, Plant and Equipment		(16)
	Subtotal - Commodity			(58)
	Interest Rate and Foreign Currency:
		Interest Expense		2,616
	Subtotal - Interest Rate and Foreign Currency			2,616
	Reclassifications from AOCI, before Income Tax (Expense) Credit			2,558
	Income Tax (Expense) Credit			896
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			1,662
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(1,338)
	Actuarial (Gains)/Losses			1,044
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(294)
	Income Tax (Expense) Credit			(103)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(191)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	1,471

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and nine months endedSeptember 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended September 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Changes in Fair Value Recognized in AOCI					1,302		887		1,915		126		123
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Changes in Fair Value Recognized in AOCI					-		(1,542)		1		1		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)
Changes in Fair Value Recognized in AOCI					1,302		(655)		1,916		127		122
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(4)		(10)		(23)		-		-
		Purchased Electricity for Resale			35		88		221		-		-
		Other Operation Expense			(4)		(1)		(6)		-		1
		Maintenance Expense			12		4		7		5		4
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			261		149		(341)		(190)		567
		Property, Plant and Equipment			3		1		1		5		3
		Regulatory Assets (a)			114		20		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Nine Months Ended September 30, 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					(946)		(741)		(1,487)		110		106
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	(362)	$	(257)	$	(524)	$	34	$	34
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					-		(6,390)		1		1		(2,778)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
Balance in AOCI as of September 30, 2012				$	1,823	$	(20,408)	$	8,435	$	6,650	$	(16,240)
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					(946)		(7,131)		(1,486)		111		(2,672)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(7)		(19)		(47)		-		-
		Purchased Electricity for Resale			411		1,074		2,806		-		-
		Other Operation Expense			(20)		(11)		(30)		(11)		(8)
		Maintenance Expense			3		-		(3)		3		1
		Depreciation and Amortization
			Expense		-		-		3		-		-
		Interest Expense			799		447		(1,023)		(569)		2,000
		Property, Plant and Equipment			(9)		(6)		(15)		1		(3)
		Regulatory Assets (a)			1,515		265		-		-		-
Balance in AOCI as of September 30, 2012				$	1,461	$	(20,665)	$	7,911	$	6,684	$	(16,206)

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