Effects of Regulation

12 Months Ended

Dec. 31, 2014

Effects of Regulation

EFFECTS OF REGULATION

Regulated Generating Units to be Retired Before or During 2016

The following regulated generating units are probable of abandonment.  Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2014.  The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2014.

Plant Name and Unit	Company	Gross Investment		Accumulated Depreciation		Net Investment		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
(in millions)
Tanners Creek Plant, Units 1-4	I&M	$	711	$	384	$	327	$	89	2015	16 years
Big Sandy Plant, Unit 2	KPCo	455		208		247		51		2015	26 years
Northeastern Station, Unit 4	PSO	182		91		91		11		2016	26 years
Welsh Plant, Unit 2	SWEPCo	175		96		79		20		2016	26 years
Total		$	1,523	$	779	$	744	$	171

In accordance with accounting guidance for “Regulated Operations,” APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment.

Regulatory Assets

Regulatory assets are comprised of the following items:

	December 31,				Remaining Recovery Period
	2014		2013
Current Regulatory Assets	(in millions)
Under-recovered Fuel Costs - earns a return	$	121	$	61	1 year
Under-recovered Fuel Costs - does not earn a return	6		19		1 year
Total Current Regulatory Assets	$	127	$	80
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Storm Related Costs	$	20	$	22
West Virginia Vegetation Management Program	20		—
Ohio Economic Development Rider	—		14
Other Regulatory Assets Pending Final Regulatory Approval	—		4
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	100		161
Carbon Capture and Storage Product Validation Facility	13		13
IGCC Pre-Construction Costs	11		—
Ormet Special Rate Recovery Mechanism	10		36
Expanded Net Energy Charge - Coal Inventory	3		21
Indiana Under-Recovered Capacity Costs	—		22
Other Regulatory Assets Pending Final Regulatory Approval	49		37
Total Regulatory Assets Pending Final Regulatory Approval	226		330
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Capacity Deferral	422		288		4 years
Ohio Fuel Adjustment Clause	378		445		4 years
Unamortized Loss on Reacquired Debt	66		81		29 years
Texas Meter Replacement Costs	59		77		13 years
Ohio Distribution Decoupling	35		31		2 years
Ohio Transmission Cost Recovery Rider	28		87		2 years
Storm Related Costs	13		17		4 years
Red Rock Generating Facility	10		10		42 years
RTO Formation/Integration Costs	9		12		5 years
Other Regulatory Assets Approved for Recovery	21		18		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	1,268		1,390		53 years
Pension and OPEB Funded Status	1,273		1,157		13 years
Peak Demand Reduction/Energy Efficiency	62		44		2 years
Virginia Transmission Rate Adjustment Clause	53		47		2 years
Medicare Subsidy	46		51		10 years
Postemployment Benefits	39		40		4 years
Cook Plant Nuclear Refueling Outage Levelization	38		58		2 years
Storm Related Costs	26		18		4 years
Indiana Under-Recovered Capacity Costs	25		—		1 year
United Mine Workers of America Pension Withdrawal	25		27		11 years
Under-Recovery of PJM Expense	22		—		2 years
Under-Recovered gridSMART® Costs	16		8		2 years
Under-Recovery of Transmission Cost Recovery Factor	15		20		1 year
Under-Recovered Distribution Investment Rider	10		9		2 years
Unrealized Loss on Forward Commitments	10		—		3 years
Litigation Settlement	9		10		11 years
Deferred Restructuring Costs	8		11		4 years
Vegetation Management	5		14		1 year
Virginia Environmental Rate Adjustment Clause	3		27		1 year
Other Regulatory Assets Approved for Recovery	44		49		various
Total Regulatory Assets Approved for Recovery	4,038		4,046
Total Noncurrent Regulatory Assets	$	4,264	$	4,376

Regulatory Liabilities

Regulatory liabilities are comprised of the following items:

	December 31,				Remaining
	2014		2013		Refund Period
Current Regulatory Liabilities	(in millions)
Over-recovered Fuel Costs - pays a return	$	—	$	9
Over-recovered Fuel Costs - does not pay a return	55		110		1 year
Total Current Regulatory Liabilities	$	55	$	119
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	$	—	$	5
Regulatory Liabilities Currently Not Paying a Return
Provision for Regulatory Loss	35		—
Other Regulatory Liabilities Pending Final Regulatory Determination	17		3
Total Regulatory Liabilities Pending Final Regulatory Determination	52		8
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	2,660		2,589		(a)
Louisiana Refundable Construction Financing Costs	58		78		4 years
Advanced Metering Infrastructure Surcharge	44		68		6 years
Deferred Investment Tax Credits	26		29		46 years
Excess Earnings	11		12		39 years
Other Regulatory Liabilities Approved for Payment	4		1		various
Regulatory Liabilities Currently Not Paying a Return
Excess Asset Retirement Obligations for Nuclear
Decommissioning Liability	695		597		(b)
Deferred Investment Tax Credits	112		121		50 years
Unrealized Gain on Forward Commitments	92		35		18 years
Over-Recovery of Transition Charges	47		40		13 years
Spent Nuclear Fuel Liability	44		43		(b)
Indiana Off-system Sales Margin Sharing	19		—		2 years
Peak Demand Reduction/Energy Efficiency	3		18		2 years
Deferred State Income Tax Coal Credits	—		28
Over-Recovery of PJM Expense	—		14
Other Regulatory Liabilities Approved for Payment	25		13		various
Total Regulatory Liabilities Approved for Payment	3,840		3,686
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	3,892	$	3,694

(a) Relieved as removal costs are incurred.

(b) Relieved when plant is decommissioned.

Appalachian Power Co [Member]

Effects of Regulation

EFFECTS OF REGULATION

Regulated Generating Units to be Retired Before or During 2016

The following regulated generating units are probable of abandonment.  Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2014.  The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2014.

Plant Name and Unit	Company	Gross Investment		Accumulated Depreciation		Net Investment		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
		(in thousands)
Tanners Creek Plant, Units 1-4	I&M	$	711,034	$	383,643	$	327,391	$	89,333	2015	16 years
Northeastern Station, Unit 4	PSO	182,138		90,925		91,213		11,189		2016	26 years
Welsh Plant, Unit 2	SWEPCo	175,217		95,828		79,389		19,536		2016	26 years
Total		$	1,068,389	$	570,396	$	497,993	$	120,058

In accordance with accounting guidance for “Regulated Operations,” APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment.

Regulatory Assets

Regulatory assets and liabilities are comprised of the following items:

	APCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	60,726	$	39,811	1 year
Under-recovered Fuel Costs - does not earn a return	5,350		—		1 year
Total Current Regulatory Assets	$	66,076	$	39,811
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Vegetation Management Program - West Virginia	$	19,089	$	—
Regulatory Assets Currently Not Earning a Return
Storm Related Costs - West Virginia	65,206		65,206
Carbon Capture and Storage Product Validation Facility - West Virginia, FERC	13,264		13,264
IGCC Pre-Construction Costs - West Virginia, FERC	10,838		—
Demand Response Program Costs - Virginia	8,791		5,012
Expanded Net Energy Charge - Coal Inventory	3,421		20,528
Expanded Net Energy Charge - Construction Surcharge	2,307		—
Amos Plant Transfer Costs - West Virginia	1,377		—
Carbon Capture and Storage Commercial Scale Facility - West Virginia, FERC	1,287		1,287
Transmission Agreement Phase-In - West Virginia	—		3,313
Environmental Rate Adjustment Clause - Virginia	—		2,440
Other Regulatory Assets Pending Final Regulatory Approval	168		168
Total Regulatory Assets Pending Final Regulatory Approval	125,748		111,218
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Storm Related Costs - Virginia	12,963		17,167		4 years
Unamortized Loss on Reacquired Debt	11,067		11,622		28 years
RTO Formation/Integration Costs	2,498		3,473		5 years
Other Regulatory Assets Approved for Recovery	—		665
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	381,707		531,302		24 years
Pension and OPEB Funded Status	212,485		192,464		13 years
Virginia Transmission Rate Adjustment Clause	53,164		47,322		2 years
Postemployment Benefits	17,760		19,772		4 years
Storm Related Costs - West Virginia	8,488		11,100		4 years
Deferred Restructuring Costs - West Virginia	6,519		8,525		4 years
Medicare Subsidy - West Virginia, FERC	5,888		6,477		10 years
Asset Retirement Obligation	4,418		6,453		3 years
Unrealized Loss on Forward Commitments	4,081		4		3 years
Virginia Generation Rate Adjustment Clause	3,832		6,491		1 year
Virginia Environmental Rate Adjustment Clause	3,304		27,426		1 year
Transmission Agreement Phase-In	2,875		—		3 years
Other Regulatory Assets Approved for Recovery	1,075		2,409		various
Total Regulatory Assets Approved for Recovery	732,124		892,672
Total Noncurrent Regulatory Assets	$	857,872	$	1,003,890

	APCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	—	$	107,048
Total Current Regulatory Liabilities	$	—	$	107,048
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Expanded Net Energy Charge - Construction Surcharge	$	5,383	$	—
Over-Recovered Deferred Wind Power Costs - Virginia	4,498		—
Felman Special Rate Mechanism - West Virginia	2,152		—
Other Regulatory Liabilities Pending Final Regulatory Determination	—		249
Total Regulatory Liabilities Pending Final Regulatory Determination	12,033		249
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	617,267		583,723		(a)
Deferred Investment Tax Credits	1,312		1,863		46 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	19,660		15,853		3 years
Over-Recovered Customer Rate Relief - West Virginia	2,570		413		1 year
Deferred State Income Tax Coal Credits - Virginia	—		28,255
Other Regulatory Liabilities Approved for Payment	25		869		various
Total Regulatory Liabilities Approved for Payment	640,834		630,976
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	652,867	$	631,225

(a) Relieved as removal costs are incurred.

	I&M
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	773	$	—	1 year
Under-recovered Fuel Costs -does not earn a return	—		3,397
Total Current Regulatory Assets	$	773	$	3,397
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Cook Plant Turbine	$	6,596	$	3,452
Stranded Costs on Abandoned Plants	3,897		3,896
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	1,222		164
Storm Related Costs - Indiana	1,074		1,836
Under-Recovered Capacity Costs - Indiana	—		21,945
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	—		4,093
Other Regulatory Assets Pending Final Regulatory Approval	860		—
Total Regulatory Assets Pending Final Regulatory Approval	13,649		35,386
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	13,272		21,508		18 years
Cook Plant, Unit 2 Baffle Bolts - Indiana	6,949		7,248		24 years
RTO Formation/Integration Costs	1,801		2,544		5 years
Other Regulatory Assets Approved for Recovery	764		522		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	255,002		250,478		28 years
Pension and OPEB Funded Status	107,857		100,132		13 years
Cook Plant Nuclear Refueling Outage Levelization	38,012		57,979		2 years
Under-Recovered Capacity Costs - Indiana	25,053		—		1 year
Under-Recovered PJM Expense - Indiana	21,872		—		2 years
Peak Demand Reduction/Energy Efficiency	16,616		4,457		2 years
Medicare Subsidy	10,201		11,221		10 years
Postemployment Benefits	9,999		9,096		4 years
Litigation Settlement	9,468		10,382		11 years
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	2,162		—		5 years
Deferred Restructuring Costs - Michigan	1,159		2,423		1 year
Off-system Sales Margin Sharing	—		4,409
River Transportation Division Expenses	—		4,090
Other Regulatory Assets Approved for Recovery	2,316		2,239		various
Total Regulatory Assets Approved for Recovery	522,503		488,728
Total Noncurrent Regulatory Assets	$	536,152	$	524,114

	I&M
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	7,142	$	—	1 year
Over-recovered Fuel Costs - pays a return	—		1,976
Total Current Regulatory Liabilities	$	7,142	$	1,976
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	$	102	$	113
Total Regulatory Liabilities Pending Final Regulatory Determination	102		113
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	378,471		389,025		(a)
Regulatory Liabilities Currently Not Paying a Return
Excess Asset Retirement Obligations for Nuclear Decommissioning Liability	694,856		597,113		(b)
Spent Nuclear Fuel Liability	43,519		43,416		(b)
Deferred Investment Tax Credits	38,323		43,200		22 years
Unrealized Gain on Forward Commitments	19,646		10,810		3 years
Off-system Sales Margin Sharing - Indiana	19,409		—		2 years
Over-Recovered River Transportation Division Expenses	5,347		—		1 year
Peak Demand Reduction/Energy Efficiency	—		15,021
Over-Recovered PJM Expense	—		13,924
Other Regulatory Liabilities Approved for Payment	21		23		various
Total Regulatory Liabilities Approved for Payment	1,199,592		1,112,532
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,199,694	$	1,112,645

(a) Relieved as removal costs are incurred.

(b) Relieved when plant is decommissioned.

	OPCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - does not earn a return	$	—	$	15,829
Total Current Regulatory Assets	$	—	$	15,829
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Ohio Economic Development Rider	$	—	$	13,854
Regulatory Assets Currently Not Earning a Return
Ormet Special Rate Recovery Mechanism	10,483		35,631
Storm Related Costs	—		57,589
Total Regulatory Assets Pending Final Regulatory Approval	10,483		107,074
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Capacity Deferral	422,120		288,060		4 years
Ohio Fuel Adjustment Clause	377,500		444,959		4 years
Ohio Distribution Decoupling	35,069		31,329		2 years
Ohio Transmission Cost Recovery Rider	27,894		86,621		2 years
Unamortized Loss on Reacquired Debt	11,694		13,033		24 years
Ohio Economic Development Rider	4,129		791		1 year
RTO Formation/Integration Costs	3,740		5,232		5 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	195,422		188,722		13 years
Income Taxes, Net	137,462		150,183		27 years
Peak Demand Reduction/Energy Efficiency	29,067		18,529		2 years
Under-Recovered gridSMART® Costs	15,891		8,396		2 years
Storm Related Costs	15,215		—		1 year
Medicare Subsidy	10,322		11,354		10 years
Under-Recovered Distribution Investment Rider	9,873		8,677		2 years
Enhanced Service Reliability Plan	6,504		6,836		2 years
Postemployment Benefits	6,139		6,198		4 years
Partnership with Ohio Contribution	415		1,410		1 year
Other Regulatory Assets Approved for Recovery	—		1,293		various
Total Regulatory Assets Approved for Recovery	1,308,456		1,271,623
Total Noncurrent Regulatory Assets	$	1,318,939	$	1,378,697

	OPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	46,264	$	—	1 year
Total Current Regulatory Liabilities	$	46,264	$	—
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
IGCC Preconstruction Costs	$	—	$	4,782
Regulatory Liabilities Currently Not Paying a Return
Provision for Regulatory Loss	35,172		—
Other Regulatory Liabilities Pending Final Regulatory Determination	439		216
Total Regulatory Liabilities Pending Final Regulatory Determination	35,611		4,998
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	423,218		421,061		(a)
Deferred Investment Tax Credits	67		165		7 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	47,287		2,920		18 years
Deferred Asset Phase-In Rider	7,121		4,334		6 years
Low Income Customers/Economic Recovery	1,307		1,724		1 year
Other Regulatory Liabilities Approved for Payment	80		297		various
Total Regulatory Liabilities Approved for Payment	479,080		430,501
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	514,691	$	435,499

(a)    Relieved as removal costs are incurred.

	PSO
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	35,699	$	3,298	1 year
Total Current Regulatory Assets	$	35,699	$	3,298
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	$	16,614	$	18,743
Other Regulatory Assets Pending Final Regulatory Approval	1,079		845
Total Regulatory Assets Pending Final Regulatory Approval	17,693		19,588
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Red Rock Generating Facility	9,502		9,728		42 years
Unamortized Loss on Reacquired Debt	7,987		9,455		19 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	89,648		77,171		13 years
Peak Demand Reduction/Energy Efficiency	9,162		11,333		2 years
Deferred System Reliability Rider Expenses	8,296		—		1 year
Medicare Subsidy	4,899		5,389		10 years
Vegetation Management	2,898		13,963		1 year
Income Taxes, Net	1,937		88		35 years
Deferral of Major Generation Overhauls	1,333		2,933		3 years
Base Load Purchase Power Contract	—		6,400
Other Regulatory Assets Approved for Recovery	972		642		various
Total Regulatory Assets Approved for Recovery	136,634		137,102
Total Noncurrent Regulatory Assets	$	154,327	$	156,690

	PSO
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Over-recovery of Costs Related to Advanced Metering	$	3,942	$	2,635
Other Regulatory Liabilities Pending Final Regulatory Determination	248		248
Total Regulatory Liabilities Pending Final Regulatory Determination	4,190		2,883
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	275,415		276,418		(a)
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	46,928		46,753		50 years
Base Load Purchase Power Contract	6,087		—		1 year
Over-Recovered Base Plan Funding Costs	1,393		—		2 years
Other Regulatory Liabilities Approved for Payment	466		1,619		various
Total Regulatory Liabilities Approved for Payment	330,289		324,790
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	334,479	$	327,673

(a) Relieved as removal costs are incurred.

	SWEPCo
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	24,024	$	17,949	1 year
Total Current Regulatory Assets	$	24,024	$	17,949
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Rate Case Expense	$	8,126	$	7,934
Shipe Road Transmission Project	2,287		—
Carbon Capture and Storage Commercial Scale Facility	440		1,143
Other Regulatory Assets Pending Final Regulatory Approval	1,262		1,951
Total Regulatory Assets Pending Final Regulatory Approval	12,115		11,028
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	6,952		8,165		29 years
Acquisition of Valley Electric Membership Corporation (VEMCO)	1,756		4,100		1 year
Other Regulatory Assets Approved for Recovery	68		—		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	254,856		247,827		31 years
Pension and OPEB Funded Status	99,920		89,672		13 years
Medicare Subsidy	5,333		5,866		10 years
Deferred Restructuring Costs - Louisiana	5,129		—		4 years
Vegetation Management Program - Louisiana	2,522		—		1 year
Peak Demand Reduction/Energy Efficiency	2,176		2,584		2 years
Unrealized Loss on Forward Commitments	1,144		3		1 year
Other Regulatory Assets Approved for Recovery	1,631		660		various
Total Regulatory Assets Approved for Recovery	381,487		358,877
Total Noncurrent Regulatory Assets (a)	$	393,602	$	369,905

(a) Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case.  The majority of these amounts were collected through a rider that was billed to customers.

	SWEPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - pays a return	$	—	$	7,275
Total Current Regulatory Liabilities	$	—	$	7,275
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	$	384,268	$	372,381	(a)
Refundable Construction Financing Costs - Louisiana	58,177		77,664		4 years
Excess Earnings - Texas	2,831		2,903		39 years
Over-Recovered Generation Recovery Rider Costs - Arkansas	1,724		1,254		2 years
Other Regulatory Liabilities Approved for Payment	—		32		various
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	9,831		11,207		16 years
Vegetation Management Program - Texas	556		4,002		1 year
Other Regulatory Liabilities Approved for Payment	1,143		2,685		various
Total Regulatory Liabilities Approved for Payment	458,530		472,128
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	458,530	$	472,128

(a) Relieved as removal costs are incurred.

Indiana Michigan Power Co [Member]

Effects of Regulation

EFFECTS OF REGULATION

Regulated Generating Units to be Retired Before or During 2016

The following regulated generating units are probable of abandonment.  Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2014.  The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2014.

Plant Name and Unit	Company	Gross Investment		Accumulated Depreciation		Net Investment		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
		(in thousands)
Tanners Creek Plant, Units 1-4	I&M	$	711,034	$	383,643	$	327,391	$	89,333	2015	16 years
Northeastern Station, Unit 4	PSO	182,138		90,925		91,213		11,189		2016	26 years
Welsh Plant, Unit 2	SWEPCo	175,217		95,828		79,389		19,536		2016	26 years
Total		$	1,068,389	$	570,396	$	497,993	$	120,058

In accordance with accounting guidance for “Regulated Operations,” APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment.

Regulatory Assets

Regulatory assets and liabilities are comprised of the following items:

	APCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	60,726	$	39,811	1 year
Under-recovered Fuel Costs - does not earn a return	5,350		—		1 year
Total Current Regulatory Assets	$	66,076	$	39,811
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Vegetation Management Program - West Virginia	$	19,089	$	—
Regulatory Assets Currently Not Earning a Return
Storm Related Costs - West Virginia	65,206		65,206
Carbon Capture and Storage Product Validation Facility - West Virginia, FERC	13,264		13,264
IGCC Pre-Construction Costs - West Virginia, FERC	10,838		—
Demand Response Program Costs - Virginia	8,791		5,012
Expanded Net Energy Charge - Coal Inventory	3,421		20,528
Expanded Net Energy Charge - Construction Surcharge	2,307		—
Amos Plant Transfer Costs - West Virginia	1,377		—
Carbon Capture and Storage Commercial Scale Facility - West Virginia, FERC	1,287		1,287
Transmission Agreement Phase-In - West Virginia	—		3,313
Environmental Rate Adjustment Clause - Virginia	—		2,440
Other Regulatory Assets Pending Final Regulatory Approval	168		168
Total Regulatory Assets Pending Final Regulatory Approval	125,748		111,218
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Storm Related Costs - Virginia	12,963		17,167		4 years
Unamortized Loss on Reacquired Debt	11,067		11,622		28 years
RTO Formation/Integration Costs	2,498		3,473		5 years
Other Regulatory Assets Approved for Recovery	—		665
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	381,707		531,302		24 years
Pension and OPEB Funded Status	212,485		192,464		13 years
Virginia Transmission Rate Adjustment Clause	53,164		47,322		2 years
Postemployment Benefits	17,760		19,772		4 years
Storm Related Costs - West Virginia	8,488		11,100		4 years
Deferred Restructuring Costs - West Virginia	6,519		8,525		4 years
Medicare Subsidy - West Virginia, FERC	5,888		6,477		10 years
Asset Retirement Obligation	4,418		6,453		3 years
Unrealized Loss on Forward Commitments	4,081		4		3 years
Virginia Generation Rate Adjustment Clause	3,832		6,491		1 year
Virginia Environmental Rate Adjustment Clause	3,304		27,426		1 year
Transmission Agreement Phase-In	2,875		—		3 years
Other Regulatory Assets Approved for Recovery	1,075		2,409		various
Total Regulatory Assets Approved for Recovery	732,124		892,672
Total Noncurrent Regulatory Assets	$	857,872	$	1,003,890

	APCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	—	$	107,048
Total Current Regulatory Liabilities	$	—	$	107,048
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Expanded Net Energy Charge - Construction Surcharge	$	5,383	$	—
Over-Recovered Deferred Wind Power Costs - Virginia	4,498		—
Felman Special Rate Mechanism - West Virginia	2,152		—
Other Regulatory Liabilities Pending Final Regulatory Determination	—		249
Total Regulatory Liabilities Pending Final Regulatory Determination	12,033		249
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	617,267		583,723		(a)
Deferred Investment Tax Credits	1,312		1,863		46 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	19,660		15,853		3 years
Over-Recovered Customer Rate Relief - West Virginia	2,570		413		1 year
Deferred State Income Tax Coal Credits - Virginia	—		28,255
Other Regulatory Liabilities Approved for Payment	25		869		various
Total Regulatory Liabilities Approved for Payment	640,834		630,976
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	652,867	$	631,225

(a) Relieved as removal costs are incurred.

	I&M
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	773	$	—	1 year
Under-recovered Fuel Costs -does not earn a return	—		3,397
Total Current Regulatory Assets	$	773	$	3,397
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Cook Plant Turbine	$	6,596	$	3,452
Stranded Costs on Abandoned Plants	3,897		3,896
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	1,222		164
Storm Related Costs - Indiana	1,074		1,836
Under-Recovered Capacity Costs - Indiana	—		21,945
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	—		4,093
Other Regulatory Assets Pending Final Regulatory Approval	860		—
Total Regulatory Assets Pending Final Regulatory Approval	13,649		35,386
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	13,272		21,508		18 years
Cook Plant, Unit 2 Baffle Bolts - Indiana	6,949		7,248		24 years
RTO Formation/Integration Costs	1,801		2,544		5 years
Other Regulatory Assets Approved for Recovery	764		522		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	255,002		250,478		28 years
Pension and OPEB Funded Status	107,857		100,132		13 years
Cook Plant Nuclear Refueling Outage Levelization	38,012		57,979		2 years
Under-Recovered Capacity Costs - Indiana	25,053		—		1 year
Under-Recovered PJM Expense - Indiana	21,872		—		2 years
Peak Demand Reduction/Energy Efficiency	16,616		4,457		2 years
Medicare Subsidy	10,201		11,221		10 years
Postemployment Benefits	9,999		9,096		4 years
Litigation Settlement	9,468		10,382		11 years
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	2,162		—		5 years
Deferred Restructuring Costs - Michigan	1,159		2,423		1 year
Off-system Sales Margin Sharing	—		4,409
River Transportation Division Expenses	—		4,090
Other Regulatory Assets Approved for Recovery	2,316		2,239		various
Total Regulatory Assets Approved for Recovery	522,503		488,728
Total Noncurrent Regulatory Assets	$	536,152	$	524,114

	I&M
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	7,142	$	—	1 year
Over-recovered Fuel Costs - pays a return	—		1,976
Total Current Regulatory Liabilities	$	7,142	$	1,976
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	$	102	$	113
Total Regulatory Liabilities Pending Final Regulatory Determination	102		113
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	378,471		389,025		(a)
Regulatory Liabilities Currently Not Paying a Return
Excess Asset Retirement Obligations for Nuclear Decommissioning Liability	694,856		597,113		(b)
Spent Nuclear Fuel Liability	43,519		43,416		(b)
Deferred Investment Tax Credits	38,323		43,200		22 years
Unrealized Gain on Forward Commitments	19,646		10,810		3 years
Off-system Sales Margin Sharing - Indiana	19,409		—		2 years
Over-Recovered River Transportation Division Expenses	5,347		—		1 year
Peak Demand Reduction/Energy Efficiency	—		15,021
Over-Recovered PJM Expense	—		13,924
Other Regulatory Liabilities Approved for Payment	21		23		various
Total Regulatory Liabilities Approved for Payment	1,199,592		1,112,532
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,199,694	$	1,112,645

(a) Relieved as removal costs are incurred.

(b) Relieved when plant is decommissioned.

	OPCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - does not earn a return	$	—	$	15,829
Total Current Regulatory Assets	$	—	$	15,829
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Ohio Economic Development Rider	$	—	$	13,854
Regulatory Assets Currently Not Earning a Return
Ormet Special Rate Recovery Mechanism	10,483		35,631
Storm Related Costs	—		57,589
Total Regulatory Assets Pending Final Regulatory Approval	10,483		107,074
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Capacity Deferral	422,120		288,060		4 years
Ohio Fuel Adjustment Clause	377,500		444,959		4 years
Ohio Distribution Decoupling	35,069		31,329		2 years
Ohio Transmission Cost Recovery Rider	27,894		86,621		2 years
Unamortized Loss on Reacquired Debt	11,694		13,033		24 years
Ohio Economic Development Rider	4,129		791		1 year
RTO Formation/Integration Costs	3,740		5,232		5 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	195,422		188,722		13 years
Income Taxes, Net	137,462		150,183		27 years
Peak Demand Reduction/Energy Efficiency	29,067		18,529		2 years
Under-Recovered gridSMART® Costs	15,891		8,396		2 years
Storm Related Costs	15,215		—		1 year
Medicare Subsidy	10,322		11,354		10 years
Under-Recovered Distribution Investment Rider	9,873		8,677		2 years
Enhanced Service Reliability Plan	6,504		6,836		2 years
Postemployment Benefits	6,139		6,198		4 years
Partnership with Ohio Contribution	415		1,410		1 year
Other Regulatory Assets Approved for Recovery	—		1,293		various
Total Regulatory Assets Approved for Recovery	1,308,456		1,271,623
Total Noncurrent Regulatory Assets	$	1,318,939	$	1,378,697

	OPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	46,264	$	—	1 year
Total Current Regulatory Liabilities	$	46,264	$	—
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
IGCC Preconstruction Costs	$	—	$	4,782
Regulatory Liabilities Currently Not Paying a Return
Provision for Regulatory Loss	35,172		—
Other Regulatory Liabilities Pending Final Regulatory Determination	439		216
Total Regulatory Liabilities Pending Final Regulatory Determination	35,611		4,998
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	423,218		421,061		(a)
Deferred Investment Tax Credits	67		165		7 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	47,287		2,920		18 years
Deferred Asset Phase-In Rider	7,121		4,334		6 years
Low Income Customers/Economic Recovery	1,307		1,724		1 year
Other Regulatory Liabilities Approved for Payment	80		297		various
Total Regulatory Liabilities Approved for Payment	479,080		430,501
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	514,691	$	435,499

(a)    Relieved as removal costs are incurred.

	PSO
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	35,699	$	3,298	1 year
Total Current Regulatory Assets	$	35,699	$	3,298
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	$	16,614	$	18,743
Other Regulatory Assets Pending Final Regulatory Approval	1,079		845
Total Regulatory Assets Pending Final Regulatory Approval	17,693		19,588
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Red Rock Generating Facility	9,502		9,728		42 years
Unamortized Loss on Reacquired Debt	7,987		9,455		19 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	89,648		77,171		13 years
Peak Demand Reduction/Energy Efficiency	9,162		11,333		2 years
Deferred System Reliability Rider Expenses	8,296		—		1 year
Medicare Subsidy	4,899		5,389		10 years
Vegetation Management	2,898		13,963		1 year
Income Taxes, Net	1,937		88		35 years
Deferral of Major Generation Overhauls	1,333		2,933		3 years
Base Load Purchase Power Contract	—		6,400
Other Regulatory Assets Approved for Recovery	972		642		various
Total Regulatory Assets Approved for Recovery	136,634		137,102
Total Noncurrent Regulatory Assets	$	154,327	$	156,690

	PSO
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Over-recovery of Costs Related to Advanced Metering	$	3,942	$	2,635
Other Regulatory Liabilities Pending Final Regulatory Determination	248		248
Total Regulatory Liabilities Pending Final Regulatory Determination	4,190		2,883
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	275,415		276,418		(a)
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	46,928		46,753		50 years
Base Load Purchase Power Contract	6,087		—		1 year
Over-Recovered Base Plan Funding Costs	1,393		—		2 years
Other Regulatory Liabilities Approved for Payment	466		1,619		various
Total Regulatory Liabilities Approved for Payment	330,289		324,790
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	334,479	$	327,673

(a) Relieved as removal costs are incurred.

	SWEPCo
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	24,024	$	17,949	1 year
Total Current Regulatory Assets	$	24,024	$	17,949
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Rate Case Expense	$	8,126	$	7,934
Shipe Road Transmission Project	2,287		—
Carbon Capture and Storage Commercial Scale Facility	440		1,143
Other Regulatory Assets Pending Final Regulatory Approval	1,262		1,951
Total Regulatory Assets Pending Final Regulatory Approval	12,115		11,028
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	6,952		8,165		29 years
Acquisition of Valley Electric Membership Corporation (VEMCO)	1,756		4,100		1 year
Other Regulatory Assets Approved for Recovery	68		—		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	254,856		247,827		31 years
Pension and OPEB Funded Status	99,920		89,672		13 years
Medicare Subsidy	5,333		5,866		10 years
Deferred Restructuring Costs - Louisiana	5,129		—		4 years
Vegetation Management Program - Louisiana	2,522		—		1 year
Peak Demand Reduction/Energy Efficiency	2,176		2,584		2 years
Unrealized Loss on Forward Commitments	1,144		3		1 year
Other Regulatory Assets Approved for Recovery	1,631		660		various
Total Regulatory Assets Approved for Recovery	381,487		358,877
Total Noncurrent Regulatory Assets (a)	$	393,602	$	369,905

(a) Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case.  The majority of these amounts were collected through a rider that was billed to customers.

	SWEPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - pays a return	$	—	$	7,275
Total Current Regulatory Liabilities	$	—	$	7,275
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	$	384,268	$	372,381	(a)
Refundable Construction Financing Costs - Louisiana	58,177		77,664		4 years
Excess Earnings - Texas	2,831		2,903		39 years
Over-Recovered Generation Recovery Rider Costs - Arkansas	1,724		1,254		2 years
Other Regulatory Liabilities Approved for Payment	—		32		various
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	9,831		11,207		16 years
Vegetation Management Program - Texas	556		4,002		1 year
Other Regulatory Liabilities Approved for Payment	1,143		2,685		various
Total Regulatory Liabilities Approved for Payment	458,530		472,128
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	458,530	$	472,128

(a) Relieved as removal costs are incurred.

Ohio Power Co [Member]

Effects of Regulation

EFFECTS OF REGULATION

Regulated Generating Units to be Retired Before or During 2016

The following regulated generating units are probable of abandonment.  Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2014.  The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2014.

Plant Name and Unit	Company	Gross Investment		Accumulated Depreciation		Net Investment		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
		(in thousands)
Tanners Creek Plant, Units 1-4	I&M	$	711,034	$	383,643	$	327,391	$	89,333	2015	16 years
Northeastern Station, Unit 4	PSO	182,138		90,925		91,213		11,189		2016	26 years
Welsh Plant, Unit 2	SWEPCo	175,217		95,828		79,389		19,536		2016	26 years
Total		$	1,068,389	$	570,396	$	497,993	$	120,058

In accordance with accounting guidance for “Regulated Operations,” APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment.

Regulatory Assets

Regulatory assets and liabilities are comprised of the following items:

	APCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	60,726	$	39,811	1 year
Under-recovered Fuel Costs - does not earn a return	5,350		—		1 year
Total Current Regulatory Assets	$	66,076	$	39,811
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Vegetation Management Program - West Virginia	$	19,089	$	—
Regulatory Assets Currently Not Earning a Return
Storm Related Costs - West Virginia	65,206		65,206
Carbon Capture and Storage Product Validation Facility - West Virginia, FERC	13,264		13,264
IGCC Pre-Construction Costs - West Virginia, FERC	10,838		—
Demand Response Program Costs - Virginia	8,791		5,012
Expanded Net Energy Charge - Coal Inventory	3,421		20,528
Expanded Net Energy Charge - Construction Surcharge	2,307		—
Amos Plant Transfer Costs - West Virginia	1,377		—
Carbon Capture and Storage Commercial Scale Facility - West Virginia, FERC	1,287		1,287
Transmission Agreement Phase-In - West Virginia	—		3,313
Environmental Rate Adjustment Clause - Virginia	—		2,440
Other Regulatory Assets Pending Final Regulatory Approval	168		168
Total Regulatory Assets Pending Final Regulatory Approval	125,748		111,218
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Storm Related Costs - Virginia	12,963		17,167		4 years
Unamortized Loss on Reacquired Debt	11,067		11,622		28 years
RTO Formation/Integration Costs	2,498		3,473		5 years
Other Regulatory Assets Approved for Recovery	—		665
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	381,707		531,302		24 years
Pension and OPEB Funded Status	212,485		192,464		13 years
Virginia Transmission Rate Adjustment Clause	53,164		47,322		2 years
Postemployment Benefits	17,760		19,772		4 years
Storm Related Costs - West Virginia	8,488		11,100		4 years
Deferred Restructuring Costs - West Virginia	6,519		8,525		4 years
Medicare Subsidy - West Virginia, FERC	5,888		6,477		10 years
Asset Retirement Obligation	4,418		6,453		3 years
Unrealized Loss on Forward Commitments	4,081		4		3 years
Virginia Generation Rate Adjustment Clause	3,832		6,491		1 year
Virginia Environmental Rate Adjustment Clause	3,304		27,426		1 year
Transmission Agreement Phase-In	2,875		—		3 years
Other Regulatory Assets Approved for Recovery	1,075		2,409		various
Total Regulatory Assets Approved for Recovery	732,124		892,672
Total Noncurrent Regulatory Assets	$	857,872	$	1,003,890

	APCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	—	$	107,048
Total Current Regulatory Liabilities	$	—	$	107,048
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Expanded Net Energy Charge - Construction Surcharge	$	5,383	$	—
Over-Recovered Deferred Wind Power Costs - Virginia	4,498		—
Felman Special Rate Mechanism - West Virginia	2,152		—
Other Regulatory Liabilities Pending Final Regulatory Determination	—		249
Total Regulatory Liabilities Pending Final Regulatory Determination	12,033		249
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	617,267		583,723		(a)
Deferred Investment Tax Credits	1,312		1,863		46 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	19,660		15,853		3 years
Over-Recovered Customer Rate Relief - West Virginia	2,570		413		1 year
Deferred State Income Tax Coal Credits - Virginia	—		28,255
Other Regulatory Liabilities Approved for Payment	25		869		various
Total Regulatory Liabilities Approved for Payment	640,834		630,976
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	652,867	$	631,225

(a) Relieved as removal costs are incurred.

	I&M
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	773	$	—	1 year
Under-recovered Fuel Costs -does not earn a return	—		3,397
Total Current Regulatory Assets	$	773	$	3,397
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Cook Plant Turbine	$	6,596	$	3,452
Stranded Costs on Abandoned Plants	3,897		3,896
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	1,222		164
Storm Related Costs - Indiana	1,074		1,836
Under-Recovered Capacity Costs - Indiana	—		21,945
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	—		4,093
Other Regulatory Assets Pending Final Regulatory Approval	860		—
Total Regulatory Assets Pending Final Regulatory Approval	13,649		35,386
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	13,272		21,508		18 years
Cook Plant, Unit 2 Baffle Bolts - Indiana	6,949		7,248		24 years
RTO Formation/Integration Costs	1,801		2,544		5 years
Other Regulatory Assets Approved for Recovery	764		522		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	255,002		250,478		28 years
Pension and OPEB Funded Status	107,857		100,132		13 years
Cook Plant Nuclear Refueling Outage Levelization	38,012		57,979		2 years
Under-Recovered Capacity Costs - Indiana	25,053		—		1 year
Under-Recovered PJM Expense - Indiana	21,872		—		2 years
Peak Demand Reduction/Energy Efficiency	16,616		4,457		2 years
Medicare Subsidy	10,201		11,221		10 years
Postemployment Benefits	9,999		9,096		4 years
Litigation Settlement	9,468		10,382		11 years
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	2,162		—		5 years
Deferred Restructuring Costs - Michigan	1,159		2,423		1 year
Off-system Sales Margin Sharing	—		4,409
River Transportation Division Expenses	—		4,090
Other Regulatory Assets Approved for Recovery	2,316		2,239		various
Total Regulatory Assets Approved for Recovery	522,503		488,728
Total Noncurrent Regulatory Assets	$	536,152	$	524,114

	I&M
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	7,142	$	—	1 year
Over-recovered Fuel Costs - pays a return	—		1,976
Total Current Regulatory Liabilities	$	7,142	$	1,976
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	$	102	$	113
Total Regulatory Liabilities Pending Final Regulatory Determination	102		113
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	378,471		389,025		(a)
Regulatory Liabilities Currently Not Paying a Return
Excess Asset Retirement Obligations for Nuclear Decommissioning Liability	694,856		597,113		(b)
Spent Nuclear Fuel Liability	43,519		43,416		(b)
Deferred Investment Tax Credits	38,323		43,200		22 years
Unrealized Gain on Forward Commitments	19,646		10,810		3 years
Off-system Sales Margin Sharing - Indiana	19,409		—		2 years
Over-Recovered River Transportation Division Expenses	5,347		—		1 year
Peak Demand Reduction/Energy Efficiency	—		15,021
Over-Recovered PJM Expense	—		13,924
Other Regulatory Liabilities Approved for Payment	21		23		various
Total Regulatory Liabilities Approved for Payment	1,199,592		1,112,532
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,199,694	$	1,112,645

(a) Relieved as removal costs are incurred.

(b) Relieved when plant is decommissioned.

	OPCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - does not earn a return	$	—	$	15,829
Total Current Regulatory Assets	$	—	$	15,829
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Ohio Economic Development Rider	$	—	$	13,854
Regulatory Assets Currently Not Earning a Return
Ormet Special Rate Recovery Mechanism	10,483		35,631
Storm Related Costs	—		57,589
Total Regulatory Assets Pending Final Regulatory Approval	10,483		107,074
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Capacity Deferral	422,120		288,060		4 years
Ohio Fuel Adjustment Clause	377,500		444,959		4 years
Ohio Distribution Decoupling	35,069		31,329		2 years
Ohio Transmission Cost Recovery Rider	27,894		86,621		2 years
Unamortized Loss on Reacquired Debt	11,694		13,033		24 years
Ohio Economic Development Rider	4,129		791		1 year
RTO Formation/Integration Costs	3,740		5,232		5 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	195,422		188,722		13 years
Income Taxes, Net	137,462		150,183		27 years
Peak Demand Reduction/Energy Efficiency	29,067		18,529		2 years
Under-Recovered gridSMART® Costs	15,891		8,396		2 years
Storm Related Costs	15,215		—		1 year
Medicare Subsidy	10,322		11,354		10 years
Under-Recovered Distribution Investment Rider	9,873		8,677		2 years
Enhanced Service Reliability Plan	6,504		6,836		2 years
Postemployment Benefits	6,139		6,198		4 years
Partnership with Ohio Contribution	415		1,410		1 year
Other Regulatory Assets Approved for Recovery	—		1,293		various
Total Regulatory Assets Approved for Recovery	1,308,456		1,271,623
Total Noncurrent Regulatory Assets	$	1,318,939	$	1,378,697

	OPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	46,264	$	—	1 year
Total Current Regulatory Liabilities	$	46,264	$	—
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
IGCC Preconstruction Costs	$	—	$	4,782
Regulatory Liabilities Currently Not Paying a Return
Provision for Regulatory Loss	35,172		—
Other Regulatory Liabilities Pending Final Regulatory Determination	439		216
Total Regulatory Liabilities Pending Final Regulatory Determination	35,611		4,998
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	423,218		421,061		(a)
Deferred Investment Tax Credits	67		165		7 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	47,287		2,920		18 years
Deferred Asset Phase-In Rider	7,121		4,334		6 years
Low Income Customers/Economic Recovery	1,307		1,724		1 year
Other Regulatory Liabilities Approved for Payment	80		297		various
Total Regulatory Liabilities Approved for Payment	479,080		430,501
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	514,691	$	435,499

(a)    Relieved as removal costs are incurred.

	PSO
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	35,699	$	3,298	1 year
Total Current Regulatory Assets	$	35,699	$	3,298
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	$	16,614	$	18,743
Other Regulatory Assets Pending Final Regulatory Approval	1,079		845
Total Regulatory Assets Pending Final Regulatory Approval	17,693		19,588
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Red Rock Generating Facility	9,502		9,728		42 years
Unamortized Loss on Reacquired Debt	7,987		9,455		19 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	89,648		77,171		13 years
Peak Demand Reduction/Energy Efficiency	9,162		11,333		2 years
Deferred System Reliability Rider Expenses	8,296		—		1 year
Medicare Subsidy	4,899		5,389		10 years
Vegetation Management	2,898		13,963		1 year
Income Taxes, Net	1,937		88		35 years
Deferral of Major Generation Overhauls	1,333		2,933		3 years
Base Load Purchase Power Contract	—		6,400
Other Regulatory Assets Approved for Recovery	972		642		various
Total Regulatory Assets Approved for Recovery	136,634		137,102
Total Noncurrent Regulatory Assets	$	154,327	$	156,690

	PSO
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Over-recovery of Costs Related to Advanced Metering	$	3,942	$	2,635
Other Regulatory Liabilities Pending Final Regulatory Determination	248		248
Total Regulatory Liabilities Pending Final Regulatory Determination	4,190		2,883
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	275,415		276,418		(a)
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	46,928		46,753		50 years
Base Load Purchase Power Contract	6,087		—		1 year
Over-Recovered Base Plan Funding Costs	1,393		—		2 years
Other Regulatory Liabilities Approved for Payment	466		1,619		various
Total Regulatory Liabilities Approved for Payment	330,289		324,790
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	334,479	$	327,673

(a) Relieved as removal costs are incurred.

	SWEPCo
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	24,024	$	17,949	1 year
Total Current Regulatory Assets	$	24,024	$	17,949
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Rate Case Expense	$	8,126	$	7,934
Shipe Road Transmission Project	2,287		—
Carbon Capture and Storage Commercial Scale Facility	440		1,143
Other Regulatory Assets Pending Final Regulatory Approval	1,262		1,951
Total Regulatory Assets Pending Final Regulatory Approval	12,115		11,028
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	6,952		8,165		29 years
Acquisition of Valley Electric Membership Corporation (VEMCO)	1,756		4,100		1 year
Other Regulatory Assets Approved for Recovery	68		—		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	254,856		247,827		31 years
Pension and OPEB Funded Status	99,920		89,672		13 years
Medicare Subsidy	5,333		5,866		10 years
Deferred Restructuring Costs - Louisiana	5,129		—		4 years
Vegetation Management Program - Louisiana	2,522		—		1 year
Peak Demand Reduction/Energy Efficiency	2,176		2,584		2 years
Unrealized Loss on Forward Commitments	1,144		3		1 year
Other Regulatory Assets Approved for Recovery	1,631		660		various
Total Regulatory Assets Approved for Recovery	381,487		358,877
Total Noncurrent Regulatory Assets (a)	$	393,602	$	369,905

(a) Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case.  The majority of these amounts were collected through a rider that was billed to customers.

	SWEPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - pays a return	$	—	$	7,275
Total Current Regulatory Liabilities	$	—	$	7,275
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	$	384,268	$	372,381	(a)
Refundable Construction Financing Costs - Louisiana	58,177		77,664		4 years
Excess Earnings - Texas	2,831		2,903		39 years
Over-Recovered Generation Recovery Rider Costs - Arkansas	1,724		1,254		2 years
Other Regulatory Liabilities Approved for Payment	—		32		various
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	9,831		11,207		16 years
Vegetation Management Program - Texas	556		4,002		1 year
Other Regulatory Liabilities Approved for Payment	1,143		2,685		various
Total Regulatory Liabilities Approved for Payment	458,530		472,128
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	458,530	$	472,128

(a) Relieved as removal costs are incurred.

Public Service Co Of Oklahoma [Member]

Effects of Regulation

EFFECTS OF REGULATION

Regulated Generating Units to be Retired Before or During 2016

The following regulated generating units are probable of abandonment.  Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2014.  The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2014.

Plant Name and Unit	Company	Gross Investment		Accumulated Depreciation		Net Investment		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
		(in thousands)
Tanners Creek Plant, Units 1-4	I&M	$	711,034	$	383,643	$	327,391	$	89,333	2015	16 years
Northeastern Station, Unit 4	PSO	182,138		90,925		91,213		11,189		2016	26 years
Welsh Plant, Unit 2	SWEPCo	175,217		95,828		79,389		19,536		2016	26 years
Total		$	1,068,389	$	570,396	$	497,993	$	120,058

In accordance with accounting guidance for “Regulated Operations,” APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment.

Regulatory Assets

Regulatory assets and liabilities are comprised of the following items:

	APCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	60,726	$	39,811	1 year
Under-recovered Fuel Costs - does not earn a return	5,350		—		1 year
Total Current Regulatory Assets	$	66,076	$	39,811
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Vegetation Management Program - West Virginia	$	19,089	$	—
Regulatory Assets Currently Not Earning a Return
Storm Related Costs - West Virginia	65,206		65,206
Carbon Capture and Storage Product Validation Facility - West Virginia, FERC	13,264		13,264
IGCC Pre-Construction Costs - West Virginia, FERC	10,838		—
Demand Response Program Costs - Virginia	8,791		5,012
Expanded Net Energy Charge - Coal Inventory	3,421		20,528
Expanded Net Energy Charge - Construction Surcharge	2,307		—
Amos Plant Transfer Costs - West Virginia	1,377		—
Carbon Capture and Storage Commercial Scale Facility - West Virginia, FERC	1,287		1,287
Transmission Agreement Phase-In - West Virginia	—		3,313
Environmental Rate Adjustment Clause - Virginia	—		2,440
Other Regulatory Assets Pending Final Regulatory Approval	168		168
Total Regulatory Assets Pending Final Regulatory Approval	125,748		111,218
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Storm Related Costs - Virginia	12,963		17,167		4 years
Unamortized Loss on Reacquired Debt	11,067		11,622		28 years
RTO Formation/Integration Costs	2,498		3,473		5 years
Other Regulatory Assets Approved for Recovery	—		665
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	381,707		531,302		24 years
Pension and OPEB Funded Status	212,485		192,464		13 years
Virginia Transmission Rate Adjustment Clause	53,164		47,322		2 years
Postemployment Benefits	17,760		19,772		4 years
Storm Related Costs - West Virginia	8,488		11,100		4 years
Deferred Restructuring Costs - West Virginia	6,519		8,525		4 years
Medicare Subsidy - West Virginia, FERC	5,888		6,477		10 years
Asset Retirement Obligation	4,418		6,453		3 years
Unrealized Loss on Forward Commitments	4,081		4		3 years
Virginia Generation Rate Adjustment Clause	3,832		6,491		1 year
Virginia Environmental Rate Adjustment Clause	3,304		27,426		1 year
Transmission Agreement Phase-In	2,875		—		3 years
Other Regulatory Assets Approved for Recovery	1,075		2,409		various
Total Regulatory Assets Approved for Recovery	732,124		892,672
Total Noncurrent Regulatory Assets	$	857,872	$	1,003,890

	APCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	—	$	107,048
Total Current Regulatory Liabilities	$	—	$	107,048
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Expanded Net Energy Charge - Construction Surcharge	$	5,383	$	—
Over-Recovered Deferred Wind Power Costs - Virginia	4,498		—
Felman Special Rate Mechanism - West Virginia	2,152		—
Other Regulatory Liabilities Pending Final Regulatory Determination	—		249
Total Regulatory Liabilities Pending Final Regulatory Determination	12,033		249
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	617,267		583,723		(a)
Deferred Investment Tax Credits	1,312		1,863		46 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	19,660		15,853		3 years
Over-Recovered Customer Rate Relief - West Virginia	2,570		413		1 year
Deferred State Income Tax Coal Credits - Virginia	—		28,255
Other Regulatory Liabilities Approved for Payment	25		869		various
Total Regulatory Liabilities Approved for Payment	640,834		630,976
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	652,867	$	631,225

(a) Relieved as removal costs are incurred.

	I&M
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	773	$	—	1 year
Under-recovered Fuel Costs -does not earn a return	—		3,397
Total Current Regulatory Assets	$	773	$	3,397
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Cook Plant Turbine	$	6,596	$	3,452
Stranded Costs on Abandoned Plants	3,897		3,896
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	1,222		164
Storm Related Costs - Indiana	1,074		1,836
Under-Recovered Capacity Costs - Indiana	—		21,945
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	—		4,093
Other Regulatory Assets Pending Final Regulatory Approval	860		—
Total Regulatory Assets Pending Final Regulatory Approval	13,649		35,386
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	13,272		21,508		18 years
Cook Plant, Unit 2 Baffle Bolts - Indiana	6,949		7,248		24 years
RTO Formation/Integration Costs	1,801		2,544		5 years
Other Regulatory Assets Approved for Recovery	764		522		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	255,002		250,478		28 years
Pension and OPEB Funded Status	107,857		100,132		13 years
Cook Plant Nuclear Refueling Outage Levelization	38,012		57,979		2 years
Under-Recovered Capacity Costs - Indiana	25,053		—		1 year
Under-Recovered PJM Expense - Indiana	21,872		—		2 years
Peak Demand Reduction/Energy Efficiency	16,616		4,457		2 years
Medicare Subsidy	10,201		11,221		10 years
Postemployment Benefits	9,999		9,096		4 years
Litigation Settlement	9,468		10,382		11 years
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	2,162		—		5 years
Deferred Restructuring Costs - Michigan	1,159		2,423		1 year
Off-system Sales Margin Sharing	—		4,409
River Transportation Division Expenses	—		4,090
Other Regulatory Assets Approved for Recovery	2,316		2,239		various
Total Regulatory Assets Approved for Recovery	522,503		488,728
Total Noncurrent Regulatory Assets	$	536,152	$	524,114

	I&M
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	7,142	$	—	1 year
Over-recovered Fuel Costs - pays a return	—		1,976
Total Current Regulatory Liabilities	$	7,142	$	1,976
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	$	102	$	113
Total Regulatory Liabilities Pending Final Regulatory Determination	102		113
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	378,471		389,025		(a)
Regulatory Liabilities Currently Not Paying a Return
Excess Asset Retirement Obligations for Nuclear Decommissioning Liability	694,856		597,113		(b)
Spent Nuclear Fuel Liability	43,519		43,416		(b)
Deferred Investment Tax Credits	38,323		43,200		22 years
Unrealized Gain on Forward Commitments	19,646		10,810		3 years
Off-system Sales Margin Sharing - Indiana	19,409		—		2 years
Over-Recovered River Transportation Division Expenses	5,347		—		1 year
Peak Demand Reduction/Energy Efficiency	—		15,021
Over-Recovered PJM Expense	—		13,924
Other Regulatory Liabilities Approved for Payment	21		23		various
Total Regulatory Liabilities Approved for Payment	1,199,592		1,112,532
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,199,694	$	1,112,645

(a) Relieved as removal costs are incurred.

(b) Relieved when plant is decommissioned.

	OPCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - does not earn a return	$	—	$	15,829
Total Current Regulatory Assets	$	—	$	15,829
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Ohio Economic Development Rider	$	—	$	13,854
Regulatory Assets Currently Not Earning a Return
Ormet Special Rate Recovery Mechanism	10,483		35,631
Storm Related Costs	—		57,589
Total Regulatory Assets Pending Final Regulatory Approval	10,483		107,074
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Capacity Deferral	422,120		288,060		4 years
Ohio Fuel Adjustment Clause	377,500		444,959		4 years
Ohio Distribution Decoupling	35,069		31,329		2 years
Ohio Transmission Cost Recovery Rider	27,894		86,621		2 years
Unamortized Loss on Reacquired Debt	11,694		13,033		24 years
Ohio Economic Development Rider	4,129		791		1 year
RTO Formation/Integration Costs	3,740		5,232		5 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	195,422		188,722		13 years
Income Taxes, Net	137,462		150,183		27 years
Peak Demand Reduction/Energy Efficiency	29,067		18,529		2 years
Under-Recovered gridSMART® Costs	15,891		8,396		2 years
Storm Related Costs	15,215		—		1 year
Medicare Subsidy	10,322		11,354		10 years
Under-Recovered Distribution Investment Rider	9,873		8,677		2 years
Enhanced Service Reliability Plan	6,504		6,836		2 years
Postemployment Benefits	6,139		6,198		4 years
Partnership with Ohio Contribution	415		1,410		1 year
Other Regulatory Assets Approved for Recovery	—		1,293		various
Total Regulatory Assets Approved for Recovery	1,308,456		1,271,623
Total Noncurrent Regulatory Assets	$	1,318,939	$	1,378,697

	OPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	46,264	$	—	1 year
Total Current Regulatory Liabilities	$	46,264	$	—
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
IGCC Preconstruction Costs	$	—	$	4,782
Regulatory Liabilities Currently Not Paying a Return
Provision for Regulatory Loss	35,172		—
Other Regulatory Liabilities Pending Final Regulatory Determination	439		216
Total Regulatory Liabilities Pending Final Regulatory Determination	35,611		4,998
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	423,218		421,061		(a)
Deferred Investment Tax Credits	67		165		7 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	47,287		2,920		18 years
Deferred Asset Phase-In Rider	7,121		4,334		6 years
Low Income Customers/Economic Recovery	1,307		1,724		1 year
Other Regulatory Liabilities Approved for Payment	80		297		various
Total Regulatory Liabilities Approved for Payment	479,080		430,501
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	514,691	$	435,499

(a)    Relieved as removal costs are incurred.

	PSO
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	35,699	$	3,298	1 year
Total Current Regulatory Assets	$	35,699	$	3,298
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	$	16,614	$	18,743
Other Regulatory Assets Pending Final Regulatory Approval	1,079		845
Total Regulatory Assets Pending Final Regulatory Approval	17,693		19,588
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Red Rock Generating Facility	9,502		9,728		42 years
Unamortized Loss on Reacquired Debt	7,987		9,455		19 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	89,648		77,171		13 years
Peak Demand Reduction/Energy Efficiency	9,162		11,333		2 years
Deferred System Reliability Rider Expenses	8,296		—		1 year
Medicare Subsidy	4,899		5,389		10 years
Vegetation Management	2,898		13,963		1 year
Income Taxes, Net	1,937		88		35 years
Deferral of Major Generation Overhauls	1,333		2,933		3 years
Base Load Purchase Power Contract	—		6,400
Other Regulatory Assets Approved for Recovery	972		642		various
Total Regulatory Assets Approved for Recovery	136,634		137,102
Total Noncurrent Regulatory Assets	$	154,327	$	156,690

	PSO
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Over-recovery of Costs Related to Advanced Metering	$	3,942	$	2,635
Other Regulatory Liabilities Pending Final Regulatory Determination	248		248
Total Regulatory Liabilities Pending Final Regulatory Determination	4,190		2,883
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	275,415		276,418		(a)
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	46,928		46,753		50 years
Base Load Purchase Power Contract	6,087		—		1 year
Over-Recovered Base Plan Funding Costs	1,393		—		2 years
Other Regulatory Liabilities Approved for Payment	466		1,619		various
Total Regulatory Liabilities Approved for Payment	330,289		324,790
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	334,479	$	327,673

(a) Relieved as removal costs are incurred.

	SWEPCo
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	24,024	$	17,949	1 year
Total Current Regulatory Assets	$	24,024	$	17,949
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Rate Case Expense	$	8,126	$	7,934
Shipe Road Transmission Project	2,287		—
Carbon Capture and Storage Commercial Scale Facility	440		1,143
Other Regulatory Assets Pending Final Regulatory Approval	1,262		1,951
Total Regulatory Assets Pending Final Regulatory Approval	12,115		11,028
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	6,952		8,165		29 years
Acquisition of Valley Electric Membership Corporation (VEMCO)	1,756		4,100		1 year
Other Regulatory Assets Approved for Recovery	68		—		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	254,856		247,827		31 years
Pension and OPEB Funded Status	99,920		89,672		13 years
Medicare Subsidy	5,333		5,866		10 years
Deferred Restructuring Costs - Louisiana	5,129		—		4 years
Vegetation Management Program - Louisiana	2,522		—		1 year
Peak Demand Reduction/Energy Efficiency	2,176		2,584		2 years
Unrealized Loss on Forward Commitments	1,144		3		1 year
Other Regulatory Assets Approved for Recovery	1,631		660		various
Total Regulatory Assets Approved for Recovery	381,487		358,877
Total Noncurrent Regulatory Assets (a)	$	393,602	$	369,905

(a) Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case.  The majority of these amounts were collected through a rider that was billed to customers.

	SWEPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - pays a return	$	—	$	7,275
Total Current Regulatory Liabilities	$	—	$	7,275
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	$	384,268	$	372,381	(a)
Refundable Construction Financing Costs - Louisiana	58,177		77,664		4 years
Excess Earnings - Texas	2,831		2,903		39 years
Over-Recovered Generation Recovery Rider Costs - Arkansas	1,724		1,254		2 years
Other Regulatory Liabilities Approved for Payment	—		32		various
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	9,831		11,207		16 years
Vegetation Management Program - Texas	556		4,002		1 year
Other Regulatory Liabilities Approved for Payment	1,143		2,685		various
Total Regulatory Liabilities Approved for Payment	458,530		472,128
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	458,530	$	472,128

(a) Relieved as removal costs are incurred.

Southwestern Electric Power Co [Member]

Effects of Regulation

EFFECTS OF REGULATION

Regulated Generating Units to be Retired Before or During 2016

The following regulated generating units are probable of abandonment.  Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2014.  The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2014.

Plant Name and Unit	Company	Gross Investment		Accumulated Depreciation		Net Investment		Cost of Removal Regulatory Liability		Expected Retirement Date	Remaining Recovery Period
		(in thousands)
Tanners Creek Plant, Units 1-4	I&M	$	711,034	$	383,643	$	327,391	$	89,333	2015	16 years
Northeastern Station, Unit 4	PSO	182,138		90,925		91,213		11,189		2016	26 years
Welsh Plant, Unit 2	SWEPCo	175,217		95,828		79,389		19,536		2016	26 years
Total		$	1,068,389	$	570,396	$	497,993	$	120,058

In accordance with accounting guidance for “Regulated Operations,” APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment.

Regulatory Assets

Regulatory assets and liabilities are comprised of the following items:

	APCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	60,726	$	39,811	1 year
Under-recovered Fuel Costs - does not earn a return	5,350		—		1 year
Total Current Regulatory Assets	$	66,076	$	39,811
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Vegetation Management Program - West Virginia	$	19,089	$	—
Regulatory Assets Currently Not Earning a Return
Storm Related Costs - West Virginia	65,206		65,206
Carbon Capture and Storage Product Validation Facility - West Virginia, FERC	13,264		13,264
IGCC Pre-Construction Costs - West Virginia, FERC	10,838		—
Demand Response Program Costs - Virginia	8,791		5,012
Expanded Net Energy Charge - Coal Inventory	3,421		20,528
Expanded Net Energy Charge - Construction Surcharge	2,307		—
Amos Plant Transfer Costs - West Virginia	1,377		—
Carbon Capture and Storage Commercial Scale Facility - West Virginia, FERC	1,287		1,287
Transmission Agreement Phase-In - West Virginia	—		3,313
Environmental Rate Adjustment Clause - Virginia	—		2,440
Other Regulatory Assets Pending Final Regulatory Approval	168		168
Total Regulatory Assets Pending Final Regulatory Approval	125,748		111,218
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Storm Related Costs - Virginia	12,963		17,167		4 years
Unamortized Loss on Reacquired Debt	11,067		11,622		28 years
RTO Formation/Integration Costs	2,498		3,473		5 years
Other Regulatory Assets Approved for Recovery	—		665
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	381,707		531,302		24 years
Pension and OPEB Funded Status	212,485		192,464		13 years
Virginia Transmission Rate Adjustment Clause	53,164		47,322		2 years
Postemployment Benefits	17,760		19,772		4 years
Storm Related Costs - West Virginia	8,488		11,100		4 years
Deferred Restructuring Costs - West Virginia	6,519		8,525		4 years
Medicare Subsidy - West Virginia, FERC	5,888		6,477		10 years
Asset Retirement Obligation	4,418		6,453		3 years
Unrealized Loss on Forward Commitments	4,081		4		3 years
Virginia Generation Rate Adjustment Clause	3,832		6,491		1 year
Virginia Environmental Rate Adjustment Clause	3,304		27,426		1 year
Transmission Agreement Phase-In	2,875		—		3 years
Other Regulatory Assets Approved for Recovery	1,075		2,409		various
Total Regulatory Assets Approved for Recovery	732,124		892,672
Total Noncurrent Regulatory Assets	$	857,872	$	1,003,890

	APCo
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	—	$	107,048
Total Current Regulatory Liabilities	$	—	$	107,048
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Expanded Net Energy Charge - Construction Surcharge	$	5,383	$	—
Over-Recovered Deferred Wind Power Costs - Virginia	4,498		—
Felman Special Rate Mechanism - West Virginia	2,152		—
Other Regulatory Liabilities Pending Final Regulatory Determination	—		249
Total Regulatory Liabilities Pending Final Regulatory Determination	12,033		249
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	617,267		583,723		(a)
Deferred Investment Tax Credits	1,312		1,863		46 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	19,660		15,853		3 years
Over-Recovered Customer Rate Relief - West Virginia	2,570		413		1 year
Deferred State Income Tax Coal Credits - Virginia	—		28,255
Other Regulatory Liabilities Approved for Payment	25		869		various
Total Regulatory Liabilities Approved for Payment	640,834		630,976
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	652,867	$	631,225

(a) Relieved as removal costs are incurred.

	I&M
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	773	$	—	1 year
Under-recovered Fuel Costs -does not earn a return	—		3,397
Total Current Regulatory Assets	$	773	$	3,397
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Cook Plant Turbine	$	6,596	$	3,452
Stranded Costs on Abandoned Plants	3,897		3,896
Deferred Cook Plant Life Cycle Management Project Costs - Michigan	1,222		164
Storm Related Costs - Indiana	1,074		1,836
Under-Recovered Capacity Costs - Indiana	—		21,945
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	—		4,093
Other Regulatory Assets Pending Final Regulatory Approval	860		—
Total Regulatory Assets Pending Final Regulatory Approval	13,649		35,386
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	13,272		21,508		18 years
Cook Plant, Unit 2 Baffle Bolts - Indiana	6,949		7,248		24 years
RTO Formation/Integration Costs	1,801		2,544		5 years
Other Regulatory Assets Approved for Recovery	764		522		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	255,002		250,478		28 years
Pension and OPEB Funded Status	107,857		100,132		13 years
Cook Plant Nuclear Refueling Outage Levelization	38,012		57,979		2 years
Under-Recovered Capacity Costs - Indiana	25,053		—		1 year
Under-Recovered PJM Expense - Indiana	21,872		—		2 years
Peak Demand Reduction/Energy Efficiency	16,616		4,457		2 years
Medicare Subsidy	10,201		11,221		10 years
Postemployment Benefits	9,999		9,096		4 years
Litigation Settlement	9,468		10,382		11 years
Deferred Cook Plant Life Cycle Management Project Costs - Indiana	2,162		—		5 years
Deferred Restructuring Costs - Michigan	1,159		2,423		1 year
Off-system Sales Margin Sharing	—		4,409
River Transportation Division Expenses	—		4,090
Other Regulatory Assets Approved for Recovery	2,316		2,239		various
Total Regulatory Assets Approved for Recovery	522,503		488,728
Total Noncurrent Regulatory Assets	$	536,152	$	524,114

	I&M
	December 31,				Remaining Refund Period
Regulatory Liabilities:	2014		2013
	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	7,142	$	—	1 year
Over-recovered Fuel Costs - pays a return	—		1,976
Total Current Regulatory Liabilities	$	7,142	$	1,976
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Other Regulatory Liabilities Pending Final Regulatory Determination	$	102	$	113
Total Regulatory Liabilities Pending Final Regulatory Determination	102		113
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	378,471		389,025		(a)
Regulatory Liabilities Currently Not Paying a Return
Excess Asset Retirement Obligations for Nuclear Decommissioning Liability	694,856		597,113		(b)
Spent Nuclear Fuel Liability	43,519		43,416		(b)
Deferred Investment Tax Credits	38,323		43,200		22 years
Unrealized Gain on Forward Commitments	19,646		10,810		3 years
Off-system Sales Margin Sharing - Indiana	19,409		—		2 years
Over-Recovered River Transportation Division Expenses	5,347		—		1 year
Peak Demand Reduction/Energy Efficiency	—		15,021
Over-Recovered PJM Expense	—		13,924
Other Regulatory Liabilities Approved for Payment	21		23		various
Total Regulatory Liabilities Approved for Payment	1,199,592		1,112,532
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	1,199,694	$	1,112,645

(a) Relieved as removal costs are incurred.

(b) Relieved when plant is decommissioned.

	OPCo
	December 31,				Remaining Recovery Period
Regulatory Assets:	2014		2013
	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - does not earn a return	$	—	$	15,829
Total Current Regulatory Assets	$	—	$	15,829
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Earning a Return
Ohio Economic Development Rider	$	—	$	13,854
Regulatory Assets Currently Not Earning a Return
Ormet Special Rate Recovery Mechanism	10,483		35,631
Storm Related Costs	—		57,589
Total Regulatory Assets Pending Final Regulatory Approval	10,483		107,074
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Ohio Capacity Deferral	422,120		288,060		4 years
Ohio Fuel Adjustment Clause	377,500		444,959		4 years
Ohio Distribution Decoupling	35,069		31,329		2 years
Ohio Transmission Cost Recovery Rider	27,894		86,621		2 years
Unamortized Loss on Reacquired Debt	11,694		13,033		24 years
Ohio Economic Development Rider	4,129		791		1 year
RTO Formation/Integration Costs	3,740		5,232		5 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	195,422		188,722		13 years
Income Taxes, Net	137,462		150,183		27 years
Peak Demand Reduction/Energy Efficiency	29,067		18,529		2 years
Under-Recovered gridSMART® Costs	15,891		8,396		2 years
Storm Related Costs	15,215		—		1 year
Medicare Subsidy	10,322		11,354		10 years
Under-Recovered Distribution Investment Rider	9,873		8,677		2 years
Enhanced Service Reliability Plan	6,504		6,836		2 years
Postemployment Benefits	6,139		6,198		4 years
Partnership with Ohio Contribution	415		1,410		1 year
Other Regulatory Assets Approved for Recovery	—		1,293		various
Total Regulatory Assets Approved for Recovery	1,308,456		1,271,623
Total Noncurrent Regulatory Assets	$	1,318,939	$	1,378,697

	OPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - does not pay a return	$	46,264	$	—	1 year
Total Current Regulatory Liabilities	$	46,264	$	—
Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Paying a Return
IGCC Preconstruction Costs	$	—	$	4,782
Regulatory Liabilities Currently Not Paying a Return
Provision for Regulatory Loss	35,172		—
Other Regulatory Liabilities Pending Final Regulatory Determination	439		216
Total Regulatory Liabilities Pending Final Regulatory Determination	35,611		4,998
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	423,218		421,061		(a)
Deferred Investment Tax Credits	67		165		7 years
Regulatory Liabilities Currently Not Paying a Return
Unrealized Gain on Forward Commitments	47,287		2,920		18 years
Deferred Asset Phase-In Rider	7,121		4,334		6 years
Low Income Customers/Economic Recovery	1,307		1,724		1 year
Other Regulatory Liabilities Approved for Payment	80		297		various
Total Regulatory Liabilities Approved for Payment	479,080		430,501
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	514,691	$	435,499

(a)    Relieved as removal costs are incurred.

	PSO
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs -earns a return	$	35,699	$	3,298	1 year
Total Current Regulatory Assets	$	35,699	$	3,298
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Storm Related Costs	$	16,614	$	18,743
Other Regulatory Assets Pending Final Regulatory Approval	1,079		845
Total Regulatory Assets Pending Final Regulatory Approval	17,693		19,588
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Red Rock Generating Facility	9,502		9,728		42 years
Unamortized Loss on Reacquired Debt	7,987		9,455		19 years
Regulatory Assets Currently Not Earning a Return
Pension and OPEB Funded Status	89,648		77,171		13 years
Peak Demand Reduction/Energy Efficiency	9,162		11,333		2 years
Deferred System Reliability Rider Expenses	8,296		—		1 year
Medicare Subsidy	4,899		5,389		10 years
Vegetation Management	2,898		13,963		1 year
Income Taxes, Net	1,937		88		35 years
Deferral of Major Generation Overhauls	1,333		2,933		3 years
Base Load Purchase Power Contract	—		6,400
Other Regulatory Assets Approved for Recovery	972		642		various
Total Regulatory Assets Approved for Recovery	136,634		137,102
Total Noncurrent Regulatory Assets	$	154,327	$	156,690

	PSO
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities pending final regulatory determination:
Regulatory Liabilities Currently Not Paying a Return
Over-recovery of Costs Related to Advanced Metering	$	3,942	$	2,635
Other Regulatory Liabilities Pending Final Regulatory Determination	248		248
Total Regulatory Liabilities Pending Final Regulatory Determination	4,190		2,883
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	275,415		276,418		(a)
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	46,928		46,753		50 years
Base Load Purchase Power Contract	6,087		—		1 year
Over-Recovered Base Plan Funding Costs	1,393		—		2 years
Other Regulatory Liabilities Approved for Payment	466		1,619		various
Total Regulatory Liabilities Approved for Payment	330,289		324,790
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	334,479	$	327,673

(a) Relieved as removal costs are incurred.

	SWEPCo
	December 31,				Remaining Recovery Period
	2014		2013
Regulatory Assets:	(in thousands)
Current Regulatory Assets
Under-recovered Fuel Costs - earns a return	$	24,024	$	17,949	1 year
Total Current Regulatory Assets	$	24,024	$	17,949
Noncurrent Regulatory Assets
Regulatory assets pending final regulatory approval:
Regulatory Assets Currently Not Earning a Return
Rate Case Expense	$	8,126	$	7,934
Shipe Road Transmission Project	2,287		—
Carbon Capture and Storage Commercial Scale Facility	440		1,143
Other Regulatory Assets Pending Final Regulatory Approval	1,262		1,951
Total Regulatory Assets Pending Final Regulatory Approval	12,115		11,028
Regulatory assets approved for recovery:
Regulatory Assets Currently Earning a Return
Unamortized Loss on Reacquired Debt	6,952		8,165		29 years
Acquisition of Valley Electric Membership Corporation (VEMCO)	1,756		4,100		1 year
Other Regulatory Assets Approved for Recovery	68		—		various
Regulatory Assets Currently Not Earning a Return
Income Taxes, Net	254,856		247,827		31 years
Pension and OPEB Funded Status	99,920		89,672		13 years
Medicare Subsidy	5,333		5,866		10 years
Deferred Restructuring Costs - Louisiana	5,129		—		4 years
Vegetation Management Program - Louisiana	2,522		—		1 year
Peak Demand Reduction/Energy Efficiency	2,176		2,584		2 years
Unrealized Loss on Forward Commitments	1,144		3		1 year
Other Regulatory Assets Approved for Recovery	1,631		660		various
Total Regulatory Assets Approved for Recovery	381,487		358,877
Total Noncurrent Regulatory Assets (a)	$	393,602	$	369,905

(a) Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case.  The majority of these amounts were collected through a rider that was billed to customers.

	SWEPCo
	December 31,				Remaining Refund Period
	2014		2013
Regulatory Liabilities:	(in thousands)
Current Regulatory Liabilities
Over-recovered Fuel Costs - pays a return	$	—	$	7,275
Total Current Regulatory Liabilities	$	—	$	7,275
Noncurrent Regulatory Liabilities and
Deferred Investment Tax Credits
Regulatory liabilities approved for payment:
Regulatory Liabilities Currently Paying a Return
Asset Removal Costs	$	384,268	$	372,381	(a)
Refundable Construction Financing Costs - Louisiana	58,177		77,664		4 years
Excess Earnings - Texas	2,831		2,903		39 years
Over-Recovered Generation Recovery Rider Costs - Arkansas	1,724		1,254		2 years
Other Regulatory Liabilities Approved for Payment	—		32		various
Regulatory Liabilities Currently Not Paying a Return
Deferred Investment Tax Credits	9,831		11,207		16 years
Vegetation Management Program - Texas	556		4,002		1 year
Other Regulatory Liabilities Approved for Payment	1,143		2,685		various
Total Regulatory Liabilities Approved for Payment	458,530		472,128
Total Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits	$	458,530	$	472,128

(a) Relieved as removal costs are incurred.