Notional Volume of Derivative Instruments

		Volume
		March 31,		December 31,		Unit of
		2014		2013		Measure
Primary Risk Exposure		(in millions)
Commodity:
	Power		320		406	MWhs
	Coal		4		4	Tons
	Natural Gas		123		127	MMBtus
	Heating Oil and Gasoline		4		6	Gallons
	Interest Rate	$	192	$	191	USD

Interest Rate and Foreign Currency		$	819	$	820	USD

Amount of Gain Loss Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
March 31, 2014

									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		$	442	$	23	$	4	$	469	$	(344)	$	125
Long-term Risk Management Assets			342		5		-		347		(81)		266
Total Assets			784		28		4		816		(425)		391

Current Risk Management Liabilities			384		16		1		401		(341)		60
Long-term Risk Management Liabilities			205		4		13		222		(85)		137
Total Liabilities			589		20		14		623		(426)		197

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	195	$	8	$	(10)	$	193	$	1	$	194

Fair Value of Derivative Instruments
December 31, 2013

								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		$	347	$	12	$	4	$	363	$	(203)	$	160
Long-term Risk Management Assets			368		3		-		371		(74)		297
Total Assets			715		15		4		734		(277)		457

Current Risk Management Liabilities			292		11		1		304		(214)		90
Long-term Risk Management Liabilities			237		3		15		255		(78)		177
Total Liabilities			529		14		16		559		(292)		267

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	186	$	1	$	(12)	$	175	$	15	$	190

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the condensed 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
For the Three Months Ended March 31, 2014 and 2013

Location of Gain (Loss)	2014			2013
	(in millions)
Vertically Integrated Utilities Revenues	$	18	$	6
Generation & Marketing Revenues		32		16
Regulatory Assets (a)		-		2
Regulatory Liabilities (a)		89		(6)
Total Gain on Risk Management Contracts	$	139	$	18

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Condensed Balance Sheet
March 31, 2014

				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	13	$	-	$	13
Hedging Liabilities (a)			5		2		7
AOCI Gain (Loss) Net of Tax			4		(22)		(18)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		3		(4)		(1)

Impact of Cash Flow Hedges on the Condensed Balance Sheet
December 31, 2013

				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	7	$	-	$	7
Hedging Liabilities (a)			6		2		8
AOCI Gain (Loss) Net of Tax			-		(23)		(23)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		-		(4)		(4)

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

Collateral Required Under Various Triggering Events

		March 31,		December 31,
		2014		2013
		(in millions)
Liabilities for Derivative Contracts with Credit Downgrade Triggers		$	2	$	3
Amount of Collateral AEP Subsidiaries Would Have Been
	Required to Post		144		33
Amount Attributable to RTO and ISO Activities			38		28

	March 31,		December 31,
	2014		2013
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
Netting Arrangements	$	225	$	293
Amount of Cash Collateral Posted		-		1
Additional Settlement Liability if Cross Default Provision is Triggered		177		235

Appalachian Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2014

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		29,680		19,636		12,108		9,251		11,716
	Coal		Tons		186		2,666		-		750		1,292
	Natural Gas		MMBtus		1,934		1,312		-		-		-
	Heating Oil and
		Gasoline	Gallons		792		379		806		446		508
	Interest Rate		USD	$	10,877	$	7,378	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

Notional Volume of Derivative Instruments
December 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	March 31, 2014				December 31, 2013
	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	$	32	$	1,362	$	-	$	2,993
I&M		21		924		-		2,030
OPCo		3		-		-		-
PSO		1		-		-		1
SWEPCo		2		-		-		3

Amount of Gain Loss Recognized on Risk Management Contracts

APCo
Fair Value of Derivative Instruments
March 31, 2014

		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 (c)

		(in thousands)
Current Risk Management Assets		$	34,483	$	224	$	-	$	34,707	$	(18,735)	$	15,972
Long-term Risk Management Assets			17,304		-		-		17,304		(3,291)		14,013
Total Assets			51,787		224		-		52,011		(22,026)		29,985

Current Risk Management Liabilities			24,273		90		-		24,363		(19,727)		4,636
Long-term Risk Management Liabilities			11,558		-		-		11,558		(3,629)		7,929
Total Liabilities			35,831		90		-		35,921		(23,356)		12,565

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	15,956	$	134	$	-	$	16,090	$	1,330	$	17,420

APCo
Fair Value of Derivative Instruments
December 31, 2013

		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 (c)

		(in thousands)
Current Risk Management Assets		$	46,431	$	389	$	-	$	46,820	$	(25,649)	$	21,171
Long-term Risk Management Assets			20,948		-		-		20,948		(4,000)		16,948
Total Assets			67,379		389		-		67,768		(29,649)		38,119

Current Risk Management Liabilities			37,010		313		-		37,323		(28,431)		8,892
Long-term Risk Management Liabilities			14,452		-		-		14,452		(4,211)		10,241
Total Liabilities			51,462		313		-		51,775		(32,642)		19,133

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	15,917	$	76	$	-	$	15,993	$	2,993	$	18,986

(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) 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
For the Three Months Ended March 31, 2014

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	4,847	$	6,156	$	-	$	64	$	23
Sales to AEP Affiliates				-		(221)		-		221		-
Regulatory Assets (a)				4		-		-		2		3
Regulatory Liabilities (a)				32,332		18,317		35,099		480		1,330
Total Gain on Risk Management
	Contracts		$	37,183	$	24,252	$	35,099	$	767	$	1,356

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	679	$	4,947	$	1,714	$	47	$	28
Regulatory Assets (a)				-		486		(1,205)		2,010		271
Regulatory Liabilities (a)				(466)		(5,182)		-		1		96
Total Gain on Risk Management
	Contracts		$	213	$	251	$	509	$	2,058	$	395

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
March 31, 2014

	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	$	209	$	-	$	75	$	-	$	87	$	3,343
I&M		142		-		51		-		61		(15,566)
OPCo		-		-		-		-		-		6,631
PSO		-		-		-		-		-		5,512
SWEPCo		-		-		-		-		-		(12,736)

	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	$	87	$	(682)		2
I&M		61		(1,426)		2
OPCo		-		1,372		-
PSO		-		759		-
SWEPCo		-		(2,267)		-

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
December 31, 2013

	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	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	94	$	(806)
I&M		46		(1,568)
OPCo		105		1,363
PSO		57		759
SWEPCo		66		(2,267)

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

Collateral Required Under Various Triggering Events

	March 31, 2014
	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	$	285	$	5,254	$	4,774
I&M		190		3,560		3,238
OPCo		78		-		-
PSO		132		4,156		-
SWEPCo		167		145		-

	December 31, 2013
	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	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	March 31, 2014
	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	$	16,375	$	-	$	12,865
I&M		11,107		-		8,726
OPCo		-		-		-
PSO		-		-		-
SWEPCo		-		-		-

	December 31, 2013
	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	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

Indiana Michigan Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2014

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		29,680		19,636		12,108		9,251		11,716
	Coal		Tons		186		2,666		-		750		1,292
	Natural Gas		MMBtus		1,934		1,312		-		-		-
	Heating Oil and
		Gasoline	Gallons		792		379		806		446		508
	Interest Rate		USD	$	10,877	$	7,378	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

Notional Volume of Derivative Instruments
December 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	March 31, 2014				December 31, 2013
	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	$	32	$	1,362	$	-	$	2,993
I&M		21		924		-		2,030
OPCo		3		-		-		-
PSO		1		-		-		1
SWEPCo		2		-		-		3

Amount of Gain Loss Recognized on Risk Management Contracts

I&M
Fair Value of Derivative Instruments
March 31, 2014

		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 (c)

		(in thousands)
Current Risk Management Assets		$	26,273	$	152	$	-	$	26,425	$	(13,867)	$	12,558
Long-term Risk Management Assets			11,737		-		-		11,737		(2,232)		9,505
Total Assets			38,010		152		-		38,162		(16,099)		22,063

Current Risk Management Liabilities			18,614		61		-		18,675		(14,541)		4,134
Long-term Risk Management Liabilities			7,839		-		-		7,839		(2,461)		5,378
Total Liabilities			26,453		61		-		26,514		(17,002)		9,512

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	11,557	$	91	$	-	$	11,648	$	903	$	12,551

I&M
Fair Value of Derivative Instruments
December 31, 2013

		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 (c)

		(in thousands)
Current Risk Management Assets		$	33,229	$	234	$	-	$	33,463	$	(18,075)	$	15,388
Long-term Risk Management Assets			14,208		-		-		14,208		(2,713)		11,495
Total Assets			47,437		234		-		47,671		(20,788)		26,883

Current Risk Management Liabilities			26,779		212		-		26,991		(19,962)		7,029
Long-term Risk Management Liabilities			9,802		-		-		9,802		(2,856)		6,946
Total Liabilities			36,581		212		-		36,793		(22,818)		13,975

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	10,856	$	22	$	-	$	10,878	$	2,030	$	12,908

(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) 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
For the Three Months Ended March 31, 2014

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	4,847	$	6,156	$	-	$	64	$	23
Sales to AEP Affiliates				-		(221)		-		221		-
Regulatory Assets (a)				4		-		-		2		3
Regulatory Liabilities (a)				32,332		18,317		35,099		480		1,330
Total Gain on Risk Management
	Contracts		$	37,183	$	24,252	$	35,099	$	767	$	1,356

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	679	$	4,947	$	1,714	$	47	$	28
Regulatory Assets (a)				-		486		(1,205)		2,010		271
Regulatory Liabilities (a)				(466)		(5,182)		-		1		96
Total Gain on Risk Management
	Contracts		$	213	$	251	$	509	$	2,058	$	395

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
March 31, 2014

	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	$	209	$	-	$	75	$	-	$	87	$	3,343
I&M		142		-		51		-		61		(15,566)
OPCo		-		-		-		-		-		6,631
PSO		-		-		-		-		-		5,512
SWEPCo		-		-		-		-		-		(12,736)

	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	$	87	$	(682)		2
I&M		61		(1,426)		2
OPCo		-		1,372		-
PSO		-		759		-
SWEPCo		-		(2,267)		-

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
December 31, 2013

	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	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	94	$	(806)
I&M		46		(1,568)
OPCo		105		1,363
PSO		57		759
SWEPCo		66		(2,267)

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

Collateral Required Under Various Triggering Events

	March 31, 2014
	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	$	285	$	5,254	$	4,774
I&M		190		3,560		3,238
OPCo		78		-		-
PSO		132		4,156		-
SWEPCo		167		145		-

	December 31, 2013
	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	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	March 31, 2014
	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	$	16,375	$	-	$	12,865
I&M		11,107		-		8,726
OPCo		-		-		-
PSO		-		-		-
SWEPCo		-		-		-

	December 31, 2013
	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	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

Ohio Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2014

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		29,680		19,636		12,108		9,251		11,716
	Coal		Tons		186		2,666		-		750		1,292
	Natural Gas		MMBtus		1,934		1,312		-		-		-
	Heating Oil and
		Gasoline	Gallons		792		379		806		446		508
	Interest Rate		USD	$	10,877	$	7,378	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

Notional Volume of Derivative Instruments
December 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	March 31, 2014				December 31, 2013
	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	$	32	$	1,362	$	-	$	2,993
I&M		21		924		-		2,030
OPCo		3		-		-		-
PSO		1		-		-		1
SWEPCo		2		-		-		3

Amount of Gain Loss Recognized on Risk Management Contracts

OPCo
Fair Value of Derivative Instruments
March 31, 2014

		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 (c)

		(in thousands)
Current Risk Management Assets		$	4,066	$	-	$	-	$	4,066	$	(86)	$	3,980
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			4,066		-		-		4,066		(86)		3,980

Current Risk Management Liabilities			83		-		-		83		(83)		-
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			83		-		-		83		(83)		-

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	3,983	$	-	$	-	$	3,983	$	(3)	$	3,980

OPCo
Fair Value of Derivative Instruments
December 31, 2013

		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 (c)

		(in thousands)
Current Risk Management Assets		$	3,269	$	162	$	-	$	3,431	$	(349)	$	3,082
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			3,269		162		-		3,431		(349)		3,082

Current Risk Management Liabilities			349		-		-		349		(349)		-
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			349		-		-		349		(349)		-

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	2,920	$	162	$	-	$	3,082	$	-	$	3,082

(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) 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
For the Three Months Ended March 31, 2014

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	4,847	$	6,156	$	-	$	64	$	23
Sales to AEP Affiliates				-		(221)		-		221		-
Regulatory Assets (a)				4		-		-		2		3
Regulatory Liabilities (a)				32,332		18,317		35,099		480		1,330
Total Gain on Risk Management
	Contracts		$	37,183	$	24,252	$	35,099	$	767	$	1,356

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	679	$	4,947	$	1,714	$	47	$	28
Regulatory Assets (a)				-		486		(1,205)		2,010		271
Regulatory Liabilities (a)				(466)		(5,182)		-		1		96
Total Gain on Risk Management
	Contracts		$	213	$	251	$	509	$	2,058	$	395

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
March 31, 2014

	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	$	209	$	-	$	75	$	-	$	87	$	3,343
I&M		142		-		51		-		61		(15,566)
OPCo		-		-		-		-		-		6,631
PSO		-		-		-		-		-		5,512
SWEPCo		-		-		-		-		-		(12,736)

	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	$	87	$	(682)		2
I&M		61		(1,426)		2
OPCo		-		1,372		-
PSO		-		759		-
SWEPCo		-		(2,267)		-

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
December 31, 2013

	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	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	94	$	(806)
I&M		46		(1,568)
OPCo		105		1,363
PSO		57		759
SWEPCo		66		(2,267)

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

Collateral Required Under Various Triggering Events

	March 31, 2014
	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	$	285	$	5,254	$	4,774
I&M		190		3,560		3,238
OPCo		78		-		-
PSO		132		4,156		-
SWEPCo		167		145		-

	December 31, 2013
	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	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	March 31, 2014
	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	$	16,375	$	-	$	12,865
I&M		11,107		-		8,726
OPCo		-		-		-
PSO		-		-		-
SWEPCo		-		-		-

	December 31, 2013
	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	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

Public Service Co Of Oklahoma [Member]

Notional Volume of Derivative Instruments
March 31, 2014

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		29,680		19,636		12,108		9,251		11,716
	Coal		Tons		186		2,666		-		750		1,292
	Natural Gas		MMBtus		1,934		1,312		-		-		-
	Heating Oil and
		Gasoline	Gallons		792		379		806		446		508
	Interest Rate		USD	$	10,877	$	7,378	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

Notional Volume of Derivative Instruments
December 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	March 31, 2014				December 31, 2013
	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	$	32	$	1,362	$	-	$	2,993
I&M		21		924		-		2,030
OPCo		3		-		-		-
PSO		1		-		-		1
SWEPCo		2		-		-		3

Amount of Gain Loss Recognized on Risk Management Contracts

PSO
Fair Value of Derivative Instruments
March 31, 2014

		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 (c)

		(in thousands)
Current Risk Management Assets		$	1,403	$	-	$	-	$	1,403	$	(54)	$	1,349
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			1,403		-		-		1,403		(54)		1,349

Current Risk Management Liabilities			136		-		-		136		(53)		83
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			136		-		-		136		(53)		83

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	1,267	$	-	$	-	$	1,267	$	(1)	$	1,266

PSO
Fair Value of Derivative Instruments
December 31, 2013

		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 (c)

		(in thousands)
Current Risk Management Assets		$	1,078	$	84	$	-	$	1,162	$	5	$	1,167
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			1,078		84		-		1,162		5		1,167

Current Risk Management Liabilities			81		-		-		81		4		85
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			81		-		-		81		4		85

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	997	$	84	$	-	$	1,081	$	1	$	1,082

(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) 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
For the Three Months Ended March 31, 2014

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	4,847	$	6,156	$	-	$	64	$	23
Sales to AEP Affiliates				-		(221)		-		221		-
Regulatory Assets (a)				4		-		-		2		3
Regulatory Liabilities (a)				32,332		18,317		35,099		480		1,330
Total Gain on Risk Management
	Contracts		$	37,183	$	24,252	$	35,099	$	767	$	1,356

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	679	$	4,947	$	1,714	$	47	$	28
Regulatory Assets (a)				-		486		(1,205)		2,010		271
Regulatory Liabilities (a)				(466)		(5,182)		-		1		96
Total Gain on Risk Management
	Contracts		$	213	$	251	$	509	$	2,058	$	395

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
March 31, 2014

	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	$	209	$	-	$	75	$	-	$	87	$	3,343
I&M		142		-		51		-		61		(15,566)
OPCo		-		-		-		-		-		6,631
PSO		-		-		-		-		-		5,512
SWEPCo		-		-		-		-		-		(12,736)

	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	$	87	$	(682)		2
I&M		61		(1,426)		2
OPCo		-		1,372		-
PSO		-		759		-
SWEPCo		-		(2,267)		-

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
December 31, 2013

	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	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	94	$	(806)
I&M		46		(1,568)
OPCo		105		1,363
PSO		57		759
SWEPCo		66		(2,267)

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

Collateral Required Under Various Triggering Events

	March 31, 2014
	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	$	285	$	5,254	$	4,774
I&M		190		3,560		3,238
OPCo		78		-		-
PSO		132		4,156		-
SWEPCo		167		145		-

	December 31, 2013
	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	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	March 31, 2014
	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	$	16,375	$	-	$	12,865
I&M		11,107		-		8,726
OPCo		-		-		-
PSO		-		-		-
SWEPCo		-		-		-

	December 31, 2013
	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	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

Southwestern Electric Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2014

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		29,680		19,636		12,108		9,251		11,716
	Coal		Tons		186		2,666		-		750		1,292
	Natural Gas		MMBtus		1,934		1,312		-		-		-
	Heating Oil and
		Gasoline	Gallons		792		379		806		446		508
	Interest Rate		USD	$	10,877	$	7,378	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

Notional Volume of Derivative Instruments
December 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	March 31, 2014				December 31, 2013
	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	$	32	$	1,362	$	-	$	2,993
I&M		21		924		-		2,030
OPCo		3		-		-		-
PSO		1		-		-		1
SWEPCo		2		-		-		3

Amount of Gain Loss Recognized on Risk Management Contracts

SWEPCo
Fair Value of Derivative Instruments
March 31, 2014

		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 (c)

		(in thousands)
Current Risk Management Assets		$	2,080	$	-	$	-	$	2,080	$	(173)	$	1,907
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			2,080		-		-		2,080		(173)		1,907

Current Risk Management Liabilities			171		-		-		171		(171)		-
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			171		-		-		171		(171)		-

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	1,909	$	-	$	-	$	1,909	$	(2)	$	1,907

SWEPCo
Fair Value of Derivative Instruments
December 31, 2013

		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 (c)

		(in thousands)
Current Risk Management Assets		$	1,233	$	97	$	-	$	1,330	$	(151)	$	1,179
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			1,233		97		-		1,330		(151)		1,179

Current Risk Management Liabilities			154		-		-		154		(154)		-
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			154		-		-		154		(154)		-

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	1,079	$	97	$	-	$	1,176	$	3	$	1,179

(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) 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
For the Three Months Ended March 31, 2014

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	4,847	$	6,156	$	-	$	64	$	23
Sales to AEP Affiliates				-		(221)		-		221		-
Regulatory Assets (a)				4		-		-		2		3
Regulatory Liabilities (a)				32,332		18,317		35,099		480		1,330
Total Gain on Risk Management
	Contracts		$	37,183	$	24,252	$	35,099	$	767	$	1,356

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)			APCo		I&M		OPCo		PSO		SWEPCo
			(in thousands)
Electric Generation, Transmission and
	Distribution Revenues		$	679	$	4,947	$	1,714	$	47	$	28
Regulatory Assets (a)				-		486		(1,205)		2,010		271
Regulatory Liabilities (a)				(466)		(5,182)		-		1		96
Total Gain on Risk Management
	Contracts		$	213	$	251	$	509	$	2,058	$	395

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
March 31, 2014

	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	$	209	$	-	$	75	$	-	$	87	$	3,343
I&M		142		-		51		-		61		(15,566)
OPCo		-		-		-		-		-		6,631
PSO		-		-		-		-		-		5,512
SWEPCo		-		-		-		-		-		(12,736)

	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	$	87	$	(682)		2
I&M		61		(1,426)		2
OPCo		-		1,372		-
PSO		-		759		-
SWEPCo		-		(2,267)		-

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Condensed Balance Sheets
December 31, 2013

	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	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	94	$	(806)
I&M		46		(1,568)
OPCo		105		1,363
PSO		57		759
SWEPCo		66		(2,267)

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

Collateral Required Under Various Triggering Events

	March 31, 2014
	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	$	285	$	5,254	$	4,774
I&M		190		3,560		3,238
OPCo		78		-		-
PSO		132		4,156		-
SWEPCo		167		145		-

	December 31, 2013
	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	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519