Business Segments

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

As outlined in our 2010 Annual Report, our primary business is our electric utility operations. Within our Utility Operations segment, we centrally dispatch generation assets and manage our overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight. While our Utility Operations segment remains our primary business segment, other segments include our AEP River Operations segment with significant barging activities and our Generation and Marketing segment, which includes our nonregulated generating, marketing and risk management activities primarily in the ERCOT market area and, to a lesser extent, Ohio in PJM and MISO. Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

Our reportable segments and their related business activities are as follows:

Utility Operations

• Generation of electricity for sale to U.S. retail and wholesale customers.
• Electricity transmission and distribution in the U.S.

AEPRiver Operations

• Commercial barging operations that transport coal and dry bulk commodities primarily on the Ohio, Illinois and lower Mississippi Rivers.

Generation and Marketing

• Wind farms and marketing and risk management activities primarily in ERCOT and, to a lesser extent, Ohio in PJM and MISO.

The remainder of our activities is presented as All Other. While not considered a business segment, All Other includes:

• Parent's guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
• Forward natural gas contracts that were not sold with our natural gas pipeline and storage operations in 2004 and 2005. These contracts are financial derivatives which settle and expire in the fourth quarter of 2011.
• Revenue sharing related to the Plaquemine Cogeneration Facilitywhich ends in the fourth quarter of 2011.

The tables below present our reportable segment information for the three and nine months ended September 30, 2011 and 2010 and balance sheet information as of September 30, 2011 and December 31, 2010. These amounts include certain estimates and allocations where necessary.

				Nonutility Operations
						Generation
		Utility		AEP River		and		All Other		Reconciling
		Operations		Operations		Marketing		(a)		Adjustments		Consolidated
		(in millions)
Three Months Ended September 30, 2011
Revenues from:
	External Customers	$	4,044	$	177	$	106	$	6	$	-	$	4,333
	Other Operating Segments		30		6		-		4		(40)		-
Total Revenues		$	4,074	$	183	$	106	$	10	$	(40)	$	4,333
Income (Loss) Before Extraordinary Item		$	642	$	17	$	8	$	(10)	$	-	$	657
Extraordinary Item, Net of Tax			273		-		-		-		-		273
Net Income (Loss)		$	915	$	17	$	8	$	(10)	$	-	$	930
				Nonutility Operations
						Generation
		Utility		AEP River		and		All Other		Reconciling
		Operations		Operations		Marketing		(a)		Adjustments		Consolidated
		(in millions)
Three Months Ended September 30, 2010
Revenues from:
	External Customers	$	3,876	$	147	$	41	$	-	$	-	$	4,064
	Other Operating Segments		31		7		-		3		(41)		-
Total Revenues		$	3,907	$	154	$	41	$	3	$	(41)	$	4,064
Net Income		$	541	$	14	$	-	$	2	$	-	$	557

				Nonutility Operations
						Generation
		Utility		AEP River		and		All Other		Reconciling
		Operations		Operations		Marketing		(a)		Adjustments		Consolidated
		(in millions)
Nine Months Ended September 30, 2011
Revenues from:
	External Customers	$	10,901	$	506	$	247	$	18	$	-	$	11,672
	Other Operating Segments		86		15		1		7		(109)		-
Total Revenues		$	10,987	$	521	$	248	$	25	$	(109)	$	11,672
Income (Loss) Before Extraordinary Item		$	1,376	$	23	$	20	$	(54)	$	-	$	1,365
Extraordinary Item, Net of Tax			273		-		-		-		-		273
Net Income (Loss)		$	1,649	$	23	$	20	$	(54)	$	-	$	1,638
				Nonutility Operations
						Generation
		Utility		AEP River		and		All Other		Reconciling
		Operations		Operations		Marketing		(a)		Adjustments		Consolidated
		(in millions)
Nine Months Ended September 30, 2010
Revenues from:
	External Customers	$	10,468	$	395	$	130	$	-	$	-	$	10,993
	Other Operating Segments		76		17		-		10		(103)		-
Total Revenues		$	10,544	$	412	$	130	$	10	$	(103)	$	10,993
Net Income (Loss)		$	1,017	$	16	$	17	$	(10)	$	-	$	1,040

			Nonutility Operations
					Generation				Reconciling
	Utility		AEP River		and		All Other		Adjustments
	Operations		Operations		Marketing		(a)		(b)			Consolidated
	(in millions)
September 30, 2011
Total Property, Plant and Equipment	$	54,151	$	600	$	593	$	11	$	(258)		$	55,097
Accumulated Depreciation and Amortization		18,380		130		215		10		(55)			18,680
Total Property, Plant and Equipment - Net	$	35,771	$	470	$	378	$	1	$	(203)		$	36,417
Total Assets	$	49,651	$	647	$	883	$	16,288	$	(16,282)	(c)	$	51,187
			Nonutility Operations
					Generation				Reconciling
	Utility		AEP River		and		All Other		Adjustments
	Operations		Operations		Marketing		(a)		(b)			Consolidated
	(in millions)
December 31, 2010
Total Property, Plant and Equipment	$	52,822	$	574	$	584	$	11	$	(251)		$	53,740
Accumulated Depreciation and Amortization		17,795		110		198		9		(46)			18,066
Total Property, Plant and Equipment - Net	$	35,027	$	464	$	386	$	2	$	(205)		$	35,674
Total Assets	$	48,780	$	621	$	881	$	15,942	$	(15,769)	(c)	$	50,455

(a)All Other includes:

• Parent's guarantee revenue received from affiliates, investment income, interest income and interest expense and other nonallocated costs.
• Forward natural gas contracts that were not sold with our natural gas pipeline and storage operations in 2004 and 2005. These contracts are financial derivatives which settle and expire in the fourth quarter of 2011.
• Revenue sharing related to the Plaquemine Cogeneration Facilitywhich ends in the fourth quarter of 2011.

(b)Includes eliminations due to an intercompany capital lease.

(c)       Reconciling Adjustments for Total Assets primarily include the elimination of intercompany advances to affiliates and intercompany accounts receivable along with the elimination of AEP's investments in subsidiary companies.

Appalachian Power Co [Member]

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business. The Registrant Subsidiaries' other activities are insignificant. The Registrant Subsidiaries' operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

Columbus Southern Power Co [Member]

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business. The Registrant Subsidiaries' other activities are insignificant. The Registrant Subsidiaries' operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

Indiana Michigan Power Co [Member]

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business. The Registrant Subsidiaries' other activities are insignificant. The Registrant Subsidiaries' operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

Ohio Power Co [Member]

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business. The Registrant Subsidiaries' other activities are insignificant. The Registrant Subsidiaries' operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

Public Service Co Of Oklahoma [Member]

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business. The Registrant Subsidiaries' other activities are insignificant. The Registrant Subsidiaries' operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.

Southwestern Electric Power Co [Member]

Segment Reporting [Abstract]

Business Segments

7. BUSINESS SEGMENTS

The Registrant Subsidiaries each have one reportable segment, an integrated electricity generation, transmission and distribution business. The Registrant Subsidiaries' other activities are insignificant. The Registrant Subsidiaries' operations are managed on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight on the business process, cost structures and operating results.