

	Volume
	September 30, 2014		December 31, 2013		Unit of Measure
Primary Risk Exposure	(in millions)
Commodity:
Power	348		406		MWhs
Coal	2		4		Tons
Natural Gas	112		127		MMBtus
Heating Oil and Gasoline	5		6		Gallons
Interest Rate	$	162	$	191	USD

Interest Rate and Foreign Currency	$	815	$	820	USD

Amount of Gain Loss Recognized on Risk Management Contracts

September 30, 2014



	Risk Management Contracts		Hedging Contracts					Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in millions)
Current Risk Management Assets	$	340	$	17	$	4		$	361	$	(226	)	$	135
Long-term Risk Management Assets	300		4		—			304		(76		)	228
Total Assets	640		21		4			665		(302		)	363

Current Risk Management Liabilities	262		12		1			275		(215		)	60
Long-term Risk Management Liabilities	180		3		12			195		(75		)	120
Total Liabilities	442		15		13			470		(290		)	180

Total MTM Derivative Contract Net Assets (Liabilities)	$	198	$	6	$	(9	)	$	195	$	(12	)	$	183

Fair Value of Derivative Instruments
December 31, 2013

	Risk Management Contracts		Hedging Contracts					Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in millions)
Current Risk Management Assets	$	347	$	12	$	4		$	363	$	(203	)	$	160
Long-term Risk Management Assets	368		3		—			371		(74		)	297
Total Assets	715		15		4			734		(277		)	457

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

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


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three and Nine Months Ended September 30, 2014 and 2013



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Location of Gain (Loss)	2014			2013			2014			2013
	(in millions)
Vertically Integrated Utilities Revenues	$	7		$	3		$	29		$	13
Generation & Marketing Revenues	21			10			69			43
Regulatory Assets (a)	(6		)	(1		)	(6		)	(3		)
Regulatory Liabilities (a)	(7		)	(4		)	111			(10		)
Total Gain on Risk Management Contracts	$	15		$	8		$	203		$	43


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet



Impact of Cash Flow Hedges on the Condensed Balance Sheet
September 30, 2014

	Commodity		Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	9	$	—		$	9
Hedging Liabilities (a)	3		1			4
AOCI Gain (Loss) Net of Tax	3		(20		)	(17		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	2		(3		)	(1		)

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

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


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

Collateral Required Under Various Triggering Events



	September 30, 2014		December 31, 2013
	(in millions)
Liabilities for Derivative Contracts with Credit Downgrade Triggers	$	1	$	3
Amount of Collateral AEP Subsidiaries Would Have Been Required to Post	144		33
Amount Attributable to RTO and ISO Activities	35		28



	September 30, 2014		December 31, 2013
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements	$	189	$	293
Amount of Cash Collateral Posted	—		1
Additional Settlement Liability if Cross Default Provision is Triggered	147		235

Appalachian Power Co [Member]

September 30, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	50,109		36,076		23,709		6,486		7,918
Coal	Tons	465		889		—		250		542
Natural Gas	MMBtus	811		550		—		—		—
Heating Oil and Gasoline	Gallons	990		474		1,007		558		636
Interest Rate	USD	$	6,894	$	4,676	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2013



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



	September 30, 2014				December 31, 2013
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	441	$	261	$	—	$	2,993
I&M	154		151		—		2,030
OPCo	—		248		—		—
PSO	—		141		—		1
SWEPCo	—		160		—		3

Amount of Gain Loss Recognized on Risk Management Contracts

APCo

Fair Value of Derivative Instruments

September 30, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	31,542	$	—	$	—	$	31,542	$	(9,723	)	$	21,819
Long-term Risk Management Assets	7,937		—		—		7,937		(1,436		)	6,501
Total Assets	39,479		—		—		39,479		(11,159		)	28,320

Current Risk Management Liabilities	16,086		—		—		16,086		(9,715		)	6,371
Long-term Risk Management Liabilities	4,557		—		—		4,557		(1,264		)	3,293
Total Liabilities	20,643		—		—		20,643		(10,979		)	9,664

Total MTM Derivative Contract Net Assets (Liabilities)	$	18,836	$	—	$	—	$	18,836	$	(180	)	$	18,656

APCo

Fair Value of Derivative Instruments

December 31, 2013



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	46,431	$	389	$	—	$	46,820	$	(25,649	)	$	21,171
Long-term Risk Management Assets	20,948		—		—		20,948		(4,000		)	16,948
Total Assets	67,379		389		—		67,768		(29,649		)	38,119

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

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


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,231		$	2,988		$	41		$	45		$	74
Sales to AEP Affiliates	—			(196		)	—			196			—
Regulatory Assets (a)	(2,571		)	(471		)	(852		)	(109		)	(284		)
Regulatory Liabilities (a)	(3,606		)	(176		)	(1,555		)	120			(180		)
Total Gain (Loss) on Risk Management Contracts	$	(4,946	)	$	2,145		$	(2,366	)	$	252		$	(390	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	746		$	1,742		$	66		$	25	$	51
Regulatory Assets (a)	—			(1,349		)	—			960		421
Regulatory Liabilities (a)	(950		)	(2,347		)	(1,264		)	18		130
Total Gain (Loss) on Risk Management Contracts	$	(204	)	$	(1,954	)	$	(1,198	)	$	1,003	$	602

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	7,262		$	10,467		$	97		$	172		$	18
Sales to AEP Affiliates	—			(717		)	—			717			—
Regulatory Assets (a)	(2,567		)	(471		)	(215		)	(119		)	(285		)
Regulatory Liabilities (a)	42,444			26,934			39,311			(69		)	119
Total Gain (Loss) on Risk Management Contracts	$	47,139		$	36,213		$	39,193		$	701		$	(148	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,619		$	9,586		$	3,599		$	241	$	381
Regulatory Assets (a)	—			(1,648		)	(5,158		)	3,162		427
Regulatory Liabilities (a)	(1,160		)	(9,209		)	1,557			18		157
Total Gain (Loss) on Risk Management Contracts	$	459		$	(1,271	)	$	(2	)	$	3,421	$	965


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

September 30, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,766
I&M	—		—		—		—		—		(14,745		)
OPCo	—		—		—		—		—		5,945
PSO	—		—		—		—		—		5,132
SWEPCo	—		—		—		—		—		(11,602		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	(38	)	0
I&M	—		(1,140		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(2,132		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2013



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	363	$	—	$	287	$	—	$	94	$	3,090
I&M	216		—		194		—		46		(15,976		)
OPCo	162		—		—		—		105		6,974
PSO	84		—		—		—		57		5,701
SWEPCo	97		—		—		—		66		(13,304		)



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


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

Collateral Required Under Various Triggering Events



	September 30, 2014
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	157	$	2,721	$	2,697
I&M	107		1,842		1,829
OPCo	—		—		—
PSO	49		4,123		—
SWEPCo	60		176		—



	December 31, 2013
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M	390		1,863		1,722
OPCo	349		—		—
PSO	—		2,930		410
SWEPCo	—		713		519



	September 30, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	7,769	$	—	$	7,219
I&M	5,269		—		4,897
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2013
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	19,648	$	—	$	18,568
I&M	13,326		—		12,594
OPCo	—		—		—
PSO	3		—		3
SWEPCo	3		—		3

Indiana Michigan Power Co [Member]

September 30, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	50,109		36,076		23,709		6,486		7,918
Coal	Tons	465		889		—		250		542
Natural Gas	MMBtus	811		550		—		—		—
Heating Oil and Gasoline	Gallons	990		474		1,007		558		636
Interest Rate	USD	$	6,894	$	4,676	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2013



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



	September 30, 2014				December 31, 2013
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	441	$	261	$	—	$	2,993
I&M	154		151		—		2,030
OPCo	—		248		—		—
PSO	—		141		—		1
SWEPCo	—		160		—		3

Amount of Gain Loss Recognized on Risk Management Contracts

I&M

Fair Value of Derivative Instruments

September 30, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	23,289	$	—	$	—	$	23,289	$	(6,959	)	$	16,330
Long-term Risk Management Assets	5,383		—		—		5,383		(974		)	4,409
Total Assets	28,672		—		—		28,672		(7,933		)	20,739

Current Risk Management Liabilities	10,705		—		—		10,705		(7,080		)	3,625
Long-term Risk Management Liabilities	2,882		—		—		2,882		(850		)	2,032
Total Liabilities	13,587		—		—		13,587		(7,930		)	5,657

Total MTM Derivative Contract Net Assets (Liabilities)	$	15,085	$	—	$	—	$	15,085	$	(3	)	$	15,082

I&M

Fair Value of Derivative Instruments

December 31, 2013



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	33,229	$	234	$	—	$	33,463	$	(18,075	)	$	15,388
Long-term Risk Management Assets	14,208		—		—		14,208		(2,713		)	11,495
Total Assets	47,437		234		—		47,671		(20,788		)	26,883

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

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


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,231		$	2,988		$	41		$	45		$	74
Sales to AEP Affiliates	—			(196		)	—			196			—
Regulatory Assets (a)	(2,571		)	(471		)	(852		)	(109		)	(284		)
Regulatory Liabilities (a)	(3,606		)	(176		)	(1,555		)	120			(180		)
Total Gain (Loss) on Risk Management Contracts	$	(4,946	)	$	2,145		$	(2,366	)	$	252		$	(390	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	746		$	1,742		$	66		$	25	$	51
Regulatory Assets (a)	—			(1,349		)	—			960		421
Regulatory Liabilities (a)	(950		)	(2,347		)	(1,264		)	18		130
Total Gain (Loss) on Risk Management Contracts	$	(204	)	$	(1,954	)	$	(1,198	)	$	1,003	$	602

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	7,262		$	10,467		$	97		$	172		$	18
Sales to AEP Affiliates	—			(717		)	—			717			—
Regulatory Assets (a)	(2,567		)	(471		)	(215		)	(119		)	(285		)
Regulatory Liabilities (a)	42,444			26,934			39,311			(69		)	119
Total Gain (Loss) on Risk Management Contracts	$	47,139		$	36,213		$	39,193		$	701		$	(148	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,619		$	9,586		$	3,599		$	241	$	381
Regulatory Assets (a)	—			(1,648		)	(5,158		)	3,162		427
Regulatory Liabilities (a)	(1,160		)	(9,209		)	1,557			18		157
Total Gain (Loss) on Risk Management Contracts	$	459		$	(1,271	)	$	(2	)	$	3,421	$	965


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

September 30, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,766
I&M	—		—		—		—		—		(14,745		)
OPCo	—		—		—		—		—		5,945
PSO	—		—		—		—		—		5,132
SWEPCo	—		—		—		—		—		(11,602		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	(38	)	0
I&M	—		(1,140		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(2,132		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2013



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	363	$	—	$	287	$	—	$	94	$	3,090
I&M	216		—		194		—		46		(15,976		)
OPCo	162		—		—		—		105		6,974
PSO	84		—		—		—		57		5,701
SWEPCo	97		—		—		—		66		(13,304		)



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


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

Collateral Required Under Various Triggering Events



	September 30, 2014
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	157	$	2,721	$	2,697
I&M	107		1,842		1,829
OPCo	—		—		—
PSO	49		4,123		—
SWEPCo	60		176		—



	December 31, 2013
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M	390		1,863		1,722
OPCo	349		—		—
PSO	—		2,930		410
SWEPCo	—		713		519



	September 30, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	7,769	$	—	$	7,219
I&M	5,269		—		4,897
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2013
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	19,648	$	—	$	18,568
I&M	13,326		—		12,594
OPCo	—		—		—
PSO	3		—		3
SWEPCo	3		—		3

Ohio Power Co [Member]

September 30, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	50,109		36,076		23,709		6,486		7,918
Coal	Tons	465		889		—		250		542
Natural Gas	MMBtus	811		550		—		—		—
Heating Oil and Gasoline	Gallons	990		474		1,007		558		636
Interest Rate	USD	$	6,894	$	4,676	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2013



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



	September 30, 2014				December 31, 2013
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	441	$	261	$	—	$	2,993
I&M	154		151		—		2,030
OPCo	—		248		—		—
PSO	—		141		—		1
SWEPCo	—		160		—		3

Amount of Gain Loss Recognized on Risk Management Contracts

OPCo

Fair Value of Derivative Instruments

September 30, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	7,889	$	—	$	—	$	7,889	$	28		$	7,917
Long-term Risk Management Assets	—		—		—		—		5			5
Total Assets	7,889		—		—		7,889		33			7,922

Current Risk Management Liabilities	180		—		—		180		(180		)	—
Long-term Risk Management Liabilities	35		—		—		35		(35		)	—
Total Liabilities	215		—		—		215		(215		)	—

Total MTM Derivative Contract Net Assets (Liabilities)	$	7,674	$	—	$	—	$	7,674	$	248		$	7,922

OPCo

Fair Value of Derivative Instruments

December 31, 2013



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	3,269	$	162	$	—	$	3,431	$	(349	)	$	3,082
Long-term Risk Management Assets	—		—		—		—		—			—
Total Assets	3,269		162		—		3,431		(349		)	3,082

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

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


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,231		$	2,988		$	41		$	45		$	74
Sales to AEP Affiliates	—			(196		)	—			196			—
Regulatory Assets (a)	(2,571		)	(471		)	(852		)	(109		)	(284		)
Regulatory Liabilities (a)	(3,606		)	(176		)	(1,555		)	120			(180		)
Total Gain (Loss) on Risk Management Contracts	$	(4,946	)	$	2,145		$	(2,366	)	$	252		$	(390	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	746		$	1,742		$	66		$	25	$	51
Regulatory Assets (a)	—			(1,349		)	—			960		421
Regulatory Liabilities (a)	(950		)	(2,347		)	(1,264		)	18		130
Total Gain (Loss) on Risk Management Contracts	$	(204	)	$	(1,954	)	$	(1,198	)	$	1,003	$	602

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	7,262		$	10,467		$	97		$	172		$	18
Sales to AEP Affiliates	—			(717		)	—			717			—
Regulatory Assets (a)	(2,567		)	(471		)	(215		)	(119		)	(285		)
Regulatory Liabilities (a)	42,444			26,934			39,311			(69		)	119
Total Gain (Loss) on Risk Management Contracts	$	47,139		$	36,213		$	39,193		$	701		$	(148	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,619		$	9,586		$	3,599		$	241	$	381
Regulatory Assets (a)	—			(1,648		)	(5,158		)	3,162		427
Regulatory Liabilities (a)	(1,160		)	(9,209		)	1,557			18		157
Total Gain (Loss) on Risk Management Contracts	$	459		$	(1,271	)	$	(2	)	$	3,421	$	965


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

September 30, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,766
I&M	—		—		—		—		—		(14,745		)
OPCo	—		—		—		—		—		5,945
PSO	—		—		—		—		—		5,132
SWEPCo	—		—		—		—		—		(11,602		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	(38	)	0
I&M	—		(1,140		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(2,132		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2013



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	363	$	—	$	287	$	—	$	94	$	3,090
I&M	216		—		194		—		46		(15,976		)
OPCo	162		—		—		—		105		6,974
PSO	84		—		—		—		57		5,701
SWEPCo	97		—		—		—		66		(13,304		)



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


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

Collateral Required Under Various Triggering Events



	September 30, 2014
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	157	$	2,721	$	2,697
I&M	107		1,842		1,829
OPCo	—		—		—
PSO	49		4,123		—
SWEPCo	60		176		—



	December 31, 2013
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M	390		1,863		1,722
OPCo	349		—		—
PSO	—		2,930		410
SWEPCo	—		713		519



	September 30, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	7,769	$	—	$	7,219
I&M	5,269		—		4,897
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2013
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	19,648	$	—	$	18,568
I&M	13,326		—		12,594
OPCo	—		—		—
PSO	3		—		3
SWEPCo	3		—		3

Public Service Co Of Oklahoma [Member]

September 30, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	50,109		36,076		23,709		6,486		7,918
Coal	Tons	465		889		—		250		542
Natural Gas	MMBtus	811		550		—		—		—
Heating Oil and Gasoline	Gallons	990		474		1,007		558		636
Interest Rate	USD	$	6,894	$	4,676	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2013



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



	September 30, 2014				December 31, 2013
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	441	$	261	$	—	$	2,993
I&M	154		151		—		2,030
OPCo	—		248		—		—
PSO	—		141		—		1
SWEPCo	—		160		—		3

Amount of Gain Loss Recognized on Risk Management Contracts

PSO

Fair Value of Derivative Instruments

September 30, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	595	$	—	$	—	$	595	$	(32	)	$	563
Long-term Risk Management Assets	—		—		—		—		3			3
Total Assets	595		—		—		595		(29		)	566

Current Risk Management Liabilities	152		—		—		152		(152		)	—
Long-term Risk Management Liabilities	18		—		—		18		(18		)	—
Total Liabilities	170		—		—		170		(170		)	—

Total MTM Derivative Contract Net Assets (Liabilities)	$	425	$	—	$	—	$	425	$	141		$	566

PSO

Fair Value of Derivative Instruments

December 31, 2013



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)		Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	1,078	$	84	$	—	$	1,162	$	5	$	1,167
Long-term Risk Management Assets	—		—		—		—		—		—
Total Assets	1,078		84		—		1,162		5		1,167

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

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


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,231		$	2,988		$	41		$	45		$	74
Sales to AEP Affiliates	—			(196		)	—			196			—
Regulatory Assets (a)	(2,571		)	(471		)	(852		)	(109		)	(284		)
Regulatory Liabilities (a)	(3,606		)	(176		)	(1,555		)	120			(180		)
Total Gain (Loss) on Risk Management Contracts	$	(4,946	)	$	2,145		$	(2,366	)	$	252		$	(390	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	746		$	1,742		$	66		$	25	$	51
Regulatory Assets (a)	—			(1,349		)	—			960		421
Regulatory Liabilities (a)	(950		)	(2,347		)	(1,264		)	18		130
Total Gain (Loss) on Risk Management Contracts	$	(204	)	$	(1,954	)	$	(1,198	)	$	1,003	$	602

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	7,262		$	10,467		$	97		$	172		$	18
Sales to AEP Affiliates	—			(717		)	—			717			—
Regulatory Assets (a)	(2,567		)	(471		)	(215		)	(119		)	(285		)
Regulatory Liabilities (a)	42,444			26,934			39,311			(69		)	119
Total Gain (Loss) on Risk Management Contracts	$	47,139		$	36,213		$	39,193		$	701		$	(148	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,619		$	9,586		$	3,599		$	241	$	381
Regulatory Assets (a)	—			(1,648		)	(5,158		)	3,162		427
Regulatory Liabilities (a)	(1,160		)	(9,209		)	1,557			18		157
Total Gain (Loss) on Risk Management Contracts	$	459		$	(1,271	)	$	(2	)	$	3,421	$	965


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

September 30, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,766
I&M	—		—		—		—		—		(14,745		)
OPCo	—		—		—		—		—		5,945
PSO	—		—		—		—		—		5,132
SWEPCo	—		—		—		—		—		(11,602		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	(38	)	0
I&M	—		(1,140		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(2,132		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2013



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	363	$	—	$	287	$	—	$	94	$	3,090
I&M	216		—		194		—		46		(15,976		)
OPCo	162		—		—		—		105		6,974
PSO	84		—		—		—		57		5,701
SWEPCo	97		—		—		—		66		(13,304		)



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


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

Collateral Required Under Various Triggering Events



	September 30, 2014
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	157	$	2,721	$	2,697
I&M	107		1,842		1,829
OPCo	—		—		—
PSO	49		4,123		—
SWEPCo	60		176		—



	December 31, 2013
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M	390		1,863		1,722
OPCo	349		—		—
PSO	—		2,930		410
SWEPCo	—		713		519



	September 30, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	7,769	$	—	$	7,219
I&M	5,269		—		4,897
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2013
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	19,648	$	—	$	18,568
I&M	13,326		—		12,594
OPCo	—		—		—
PSO	3		—		3
SWEPCo	3		—		3

Southwestern Electric Power Co [Member]

September 30, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	50,109		36,076		23,709		6,486		7,918
Coal	Tons	465		889		—		250		542
Natural Gas	MMBtus	811		550		—		—		—
Heating Oil and Gasoline	Gallons	990		474		1,007		558		636
Interest Rate	USD	$	6,894	$	4,676	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2013



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



	September 30, 2014				December 31, 2013
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	441	$	261	$	—	$	2,993
I&M	154		151		—		2,030
OPCo	—		248		—		—
PSO	—		141		—		1
SWEPCo	—		160		—		3

Amount of Gain Loss Recognized on Risk Management Contracts

SWEPCo

Fair Value of Derivative Instruments

September 30, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	468	$	—	$	—	$	468	$	(60	)	$	408
Long-term Risk Management Assets	—		—		—		—		3			3
Total Assets	468		—		—		468		(57		)	411

Current Risk Management Liabilities	327		—		—		327		(196		)	131
Long-term Risk Management Liabilities	21		—		—		21		(21		)	—
Total Liabilities	348		—		—		348		(217		)	131

Total MTM Derivative Contract Net Assets (Liabilities)	$	120	$	—	$	—	$	120	$	160		$	280

SWEPCo

Fair Value of Derivative Instruments

December 31, 2013



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	1,233	$	97	$	—	$	1,330	$	(151	)	$	1,179
Long-term Risk Management Assets	—		—		—		—		—			—
Total Assets	1,233		97		—		1,330		(151		)	1,179

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

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


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,231		$	2,988		$	41		$	45		$	74
Sales to AEP Affiliates	—			(196		)	—			196			—
Regulatory Assets (a)	(2,571		)	(471		)	(852		)	(109		)	(284		)
Regulatory Liabilities (a)	(3,606		)	(176		)	(1,555		)	120			(180		)
Total Gain (Loss) on Risk Management Contracts	$	(4,946	)	$	2,145		$	(2,366	)	$	252		$	(390	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	746		$	1,742		$	66		$	25	$	51
Regulatory Assets (a)	—			(1,349		)	—			960		421
Regulatory Liabilities (a)	(950		)	(2,347		)	(1,264		)	18		130
Total Gain (Loss) on Risk Management Contracts	$	(204	)	$	(1,954	)	$	(1,198	)	$	1,003	$	602

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2014



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	7,262		$	10,467		$	97		$	172		$	18
Sales to AEP Affiliates	—			(717		)	—			717			—
Regulatory Assets (a)	(2,567		)	(471		)	(215		)	(119		)	(285		)
Regulatory Liabilities (a)	42,444			26,934			39,311			(69		)	119
Total Gain (Loss) on Risk Management Contracts	$	47,139		$	36,213		$	39,193		$	701		$	(148	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2013



Location of Gain (Loss)	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,619		$	9,586		$	3,599		$	241	$	381
Regulatory Assets (a)	—			(1,648		)	(5,158		)	3,162		427
Regulatory Liabilities (a)	(1,160		)	(9,209		)	1,557			18		157
Total Gain (Loss) on Risk Management Contracts	$	459		$	(1,271	)	$	(2	)	$	3,421	$	965


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

September 30, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,766
I&M	—		—		—		—		—		(14,745		)
OPCo	—		—		—		—		—		5,945
PSO	—		—		—		—		—		5,132
SWEPCo	—		—		—		—		—		(11,602		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	(38	)	0
I&M	—		(1,140		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(2,132		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2013



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	363	$	—	$	287	$	—	$	94	$	3,090
I&M	216		—		194		—		46		(15,976		)
OPCo	162		—		—		—		105		6,974
PSO	84		—		—		—		57		5,701
SWEPCo	97		—		—		—		66		(13,304		)



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


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

Collateral Required Under Various Triggering Events



	September 30, 2014
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	157	$	2,721	$	2,697
I&M	107		1,842		1,829
OPCo	—		—		—
PSO	49		4,123		—
SWEPCo	60		176		—



	December 31, 2013
Company	Liabilities for Derivative Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post		Amount Attributable to RTO and ISO Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M	390		1,863		1,722
OPCo	349		—		—
PSO	—		2,930		410
SWEPCo	—		713		519