

	Volume
	September 30, 2015		December 31, 2014		Unit of Measure
Primary Risk Exposure	(in millions)
Commodity:
Power	371		334		MWhs
Coal	4		3		Tons
Natural Gas	46		106		MMBtus
Heating Oil and Gasoline	9		6		Gallons
Interest Rate	$	114	$	152	USD

Interest Rate and Foreign Currency	$	560	$	815	USD

Amount of Gain (Loss) Recognized on Risk Management Contracts

September 30, 2015



	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	$	311	$	9		$	2		$	322	$	(179	)	$	143
Long-term Risk Management Assets	443		3			—			446		(93		)	353
Total Assets	754		12			2			768		(272		)	496

Current Risk Management Liabilities	267		7			1			275		(200		)	75
Long-term Risk Management Liabilities	293		22			1			316		(115		)	201
Total Liabilities	560		29			2			591		(315		)	276

Total MTM Derivative Contract Net Assets (Liabilities)	$	194	$	(17	)	$	—		$	177	$	43		$	220

Fair Value of Derivative Instruments
December 31, 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	$	392	$	30		$	3		$	425	$	(247	)	$	178
Long-term Risk Management Assets	367		3			—			370		(76		)	294
Total Assets	759		33			3			795		(323		)	472

Current Risk Management Liabilities	329		23			1			353		(261		)	92
Long-term Risk Management Liabilities	208		8			9			225		(94		)	131
Total Liabilities	537		31			10			578		(355		)	223

Total MTM Derivative Contract Net Assets (Liabilities)	$	222	$	2		$	(7	)	$	217	$	32		$	249


(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."


(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, 2015 and 2014



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Location of Gain (Loss)	2015			2014			2015			2014
	(in millions)
Vertically Integrated Utilities Revenues	$	—		$	7		$	7		$	29
Transmission and Distribution Utilities Revenues	(1		)	—			(1		)	—
Generation & Marketing Revenues	1			21			60			69
Other Operation Expense	—			—			(1		)	—
Maintenance Expense	(1		)	—			(2		)	—
Purchased Electricity for Resale	1			—			4			—
Regulatory Assets (a)	—			(6		)	—			(6		)
Regulatory Liabilities (a)	(20		)	(7		)	33			111
Total Gain (Loss) on Risk Management Contracts	$	(20	)	$	15		$	100		$	203


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

Gain (Loss) on Hedging Instruments



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in millions)
Gain (Loss) on Fair Value Hedging Instruments	$	4		$	(2	)	$	7		$	2
Gain (Loss) on Fair Value Portion of Long-term Debt	(4		)	2			(7		)	(2		)

Impact of Cash Flow Hedges on the Condensed Balance Sheet



Impact of Cash Flow Hedges on the Condensed Balance Sheet
September 30, 2015

	Commodity			Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	7		$	—		$	7
Hedging Liabilities (a)	24			1			25
AOCI Loss Net of Tax	(11		)	(18		)	(29		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	1			(1		)	—

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

	Commodity			Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	16		$	—		$	16
Hedging Liabilities (a)	14			1			15
AOCI Gain (Loss) Net of Tax	1			(19		)	(18		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	4			(2		)	2


(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,		December 31,
	2015		2014
	(in millions)
Fair Value of Contracts with Credit Downgrade Triggers	$	—	$	—
Amount of Collateral AEP Subsidiaries Would Have been Required to Post for Derivative Contracts as well as Derivative and Non-Derivative Contracts Subject to the Same Master Netting Arrangement	—		—
Amount of Collateral AEP Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs	35		36
Amount of Collateral Attributable to Other Contracts (a)	299		281


(a)	Represents the amount of collateral AEP subsidiaries would have been required to post for other significant non-derivative contracts including AGR jointly owned plant contracts and various other commodity related contracts.

Appalachian Power Co [Member]



	September 30, 2015		December 31, 2014
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements	$	307	$	235
Amount of Cash Collateral Posted	10		9
Additional Settlement Liability if Cross Default Provision is Triggered	251		178

September 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	62,306		30,345		13,470		17,580		21,736
Coal	Tons	116		1,468		—		—		2,125
Natural Gas	MMBtus	256		174		—		—		—
Heating Oil and Gasoline	Gallons	1,763		836		1,858		1,019		1,166
Interest Rate	USD	$	2,645	$	1,794	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	September 30, 2015				December 31, 2014
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	$	—	$	1,688	$	68	$	98
I&M	—		333		163		47
OPCo	—		500		—		102
PSO	—		280		—		54
SWEPCo	—		319		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

APCo

Fair Value of Derivative Instruments

September 30, 2015



	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 - Nonaffiliated and Affiliated	$	34,278	$	—	$	—	$	34,278	$	(6,928	)	$	27,350
Long-term Risk Management Assets - Nonaffiliated	2,485		—		—		2,485		(450		)	2,035
Total Assets	36,763		—		—		36,763		(7,378		)	29,385

Current Risk Management Liabilities - Nonaffiliated	15,345		—		—		15,345		(8,443		)	6,902
Long-term Risk Management Liabilities - Nonaffiliated	1,596		—		—		1,596		(623		)	973
Total Liabilities	16,941		—		—		16,941		(9,066		)	7,875

Total MTM Derivative Contract Net Assets (Liabilities)	$	19,822	$	—	$	—	$	19,822	$	1,688		$	21,510

APCo

Fair Value of Derivative Instruments

December 31, 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 - Nonaffiliated	$	32,903	$	—	$	—	$	32,903	$	(9,111	)	$	23,792
Long-term Risk Management Assets - Nonaffiliated	5,159		—		—		5,159		(268		)	4,891
Total Assets	38,062		—		—		38,062		(9,379		)	28,683

Current Risk Management Liabilities - Non Affiliated	20,161		—		—		20,161		(9,144		)	11,017
Long-term Risk Management Liabilities - Nonaffiliated	2,322		—		—		2,322		(265		)	2,057
Total Liabilities	22,483		—		—		22,483		(9,409		)	13,074

Total MTM Derivative Contract Net Assets (Liabilities)	$	15,579	$	—	$	—	$	15,579	$	30		$	15,609


(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, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	(369	)	$	350		$	(917	)	$	(9	)	$	(7	)
Sales to AEP Affiliates	1,156			3,336			—			—			—
Other Operation Expense	(88		)	(63		)	(128		)	(109		)	(127		)
Maintenance Expense	(164		)	(86		)	(140		)	(88		)	(88		)
Purchased Electricity for Resale	831			15			30			—			—
Regulatory Assets (a)	861			(981		)	—			(190		)	188
Regulatory Liabilities (a)	3,197			(1,718		)	(22,281		)	(498		)	1,137
Total Gain (Loss) on Risk Management Contracts	$	5,424		$	853		$	(23,436	)	$	(894	)	$	1,103

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 Nine Months Ended September 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	790		$	3,591		$	(882	)	$	16		$	19
Sales to AEP Affiliates	1,511			4,341			—			—			—
Other Operation Expense	(287		)	(221		)	(389		)	(307		)	(373		)
Maintenance Expense	(503		)	(221		)	(396		)	(248		)	(265		)
Purchased Electricity for Resale	1,571			347			30			—			—
Regulatory Assets (a)	2,136			(1,213		)	—			615			(1,234		)
Regulatory Liabilities (a)	31,797			4,121			(24,880		)	5,076			14,446
Total Gain (Loss) on Risk Management Contracts	$	37,015		$	10,745		$	(26,517	)	$	5,152		$	12,593

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	)


(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, 2015



	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	$	—	$	—	$	—	$	—	$	—	$	3,805
I&M	—		—		—		—		—		(13,604		)
OPCo	—		—		—		—		—		4,572
PSO	—		—		—		—		—		4,374
SWEPCo	—		—		—		—		—		(9,470		)



	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	$	—	$	734		0
I&M	—		(1,277		)	0
OPCo	—		1,282			0
PSO	—		771			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 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	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


(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, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	2,913	$	97
I&M	—		—		1,976		66
OPCo	—		—		—		—
PSO	—		—		2,692		3,247
SWEPCo	—		—		3,328		58



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Indiana Michigan Power Co [Member]



	September 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	5,310	$	—	$	5,288
I&M	3,601		—		3,586
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

September 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	62,306		30,345		13,470		17,580		21,736
Coal	Tons	116		1,468		—		—		2,125
Natural Gas	MMBtus	256		174		—		—		—
Heating Oil and Gasoline	Gallons	1,763		836		1,858		1,019		1,166
Interest Rate	USD	$	2,645	$	1,794	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	September 30, 2015				December 31, 2014
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	$	—	$	1,688	$	68	$	98
I&M	—		333		163		47
OPCo	—		500		—		102
PSO	—		280		—		54
SWEPCo	—		319		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

I&M

Fair Value of Derivative Instruments

September 30, 2015



	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 - Nonaffiliated and Affiliated	$	16,675	$	—	$	—	$	16,675	$	(6,048	)	$	10,627
Long-term Risk Management Assets - Nonaffiliated	1,619		—		—		1,619		(281		)	1,338
Total Assets	18,294		—		—		18,294		(6,329		)	11,965

Current Risk Management Liabilities - Nonaffiliated	10,901		—		—		10,901		(6,286		)	4,615
Long-term Risk Management Liabilities - Nonaffiliated	1,624		—		—		1,624		(376		)	1,248
Total Liabilities	12,525		—		—		12,525		(6,662		)	5,863

Total MTM Derivative Contract Net Assets (Liabilities)	$	5,769	$	—	$	—	$	5,769	$	333		$	6,102

I&M

Fair Value of Derivative Instruments

December 31, 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 - Nonaffiliated	$	28,545	$	—	$	—	$	28,545	$	(6,217	)	$	22,328
Long-term Risk Management Assets - Nonaffiliated	3,499		—		—		3,499		(182		)	3,317
Total Assets	32,044		—		—		32,044		(6,399		)	25,645

Current Risk Management Liabilities - Nonaffiliated	11,326		—		—		11,326		(6,103		)	5,223
Long-term Risk Management Liabilities - Nonaffiliated	1,575		—		—		1,575		(180		)	1,395
Total Liabilities	12,901		—		—		12,901		(6,283		)	6,618

Total MTM Derivative Contract Net Assets (Liabilities)	$	19,143	$	—	$	—	$	19,143	$	(116	)	$	19,027


(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, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	(369	)	$	350		$	(917	)	$	(9	)	$	(7	)
Sales to AEP Affiliates	1,156			3,336			—			—			—
Other Operation Expense	(88		)	(63		)	(128		)	(109		)	(127		)
Maintenance Expense	(164		)	(86		)	(140		)	(88		)	(88		)
Purchased Electricity for Resale	831			15			30			—			—
Regulatory Assets (a)	861			(981		)	—			(190		)	188
Regulatory Liabilities (a)	3,197			(1,718		)	(22,281		)	(498		)	1,137
Total Gain (Loss) on Risk Management Contracts	$	5,424		$	853		$	(23,436	)	$	(894	)	$	1,103

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 Nine Months Ended September 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	790		$	3,591		$	(882	)	$	16		$	19
Sales to AEP Affiliates	1,511			4,341			—			—			—
Other Operation Expense	(287		)	(221		)	(389		)	(307		)	(373		)
Maintenance Expense	(503		)	(221		)	(396		)	(248		)	(265		)
Purchased Electricity for Resale	1,571			347			30			—			—
Regulatory Assets (a)	2,136			(1,213		)	—			615			(1,234		)
Regulatory Liabilities (a)	31,797			4,121			(24,880		)	5,076			14,446
Total Gain (Loss) on Risk Management Contracts	$	37,015		$	10,745		$	(26,517	)	$	5,152		$	12,593

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	)


(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, 2015



	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	$	—	$	—	$	—	$	—	$	—	$	3,805
I&M	—		—		—		—		—		(13,604		)
OPCo	—		—		—		—		—		4,572
PSO	—		—		—		—		—		4,374
SWEPCo	—		—		—		—		—		(9,470		)



	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	$	—	$	734		0
I&M	—		(1,277		)	0
OPCo	—		1,282			0
PSO	—		771			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 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	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


(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, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	2,913	$	97
I&M	—		—		1,976		66
OPCo	—		—		—		—
PSO	—		—		2,692		3,247
SWEPCo	—		—		3,328		58



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166



	September 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	5,310	$	—	$	5,288
I&M	3,601		—		3,586
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

Ohio Power Co [Member]

September 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	62,306		30,345		13,470		17,580		21,736
Coal	Tons	116		1,468		—		—		2,125
Natural Gas	MMBtus	256		174		—		—		—
Heating Oil and Gasoline	Gallons	1,763		836		1,858		1,019		1,166
Interest Rate	USD	$	2,645	$	1,794	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	September 30, 2015				December 31, 2014
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	$	—	$	1,688	$	68	$	98
I&M	—		333		163		47
OPCo	—		500		—		102
PSO	—		280		—		54
SWEPCo	—		319		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

OPCo

Fair Value of Derivative Instruments

September 30, 2015



	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	$	—	$	—	$	—	$	—	$	—		$	—
Long-term Risk Management Assets	23,265		—		—		23,265		—			23,265
Total Assets	23,265		—		—		23,265		—			23,265

Current Risk Management Liabilities	3,271		—		—		3,271		(448		)	2,823
Long-term Risk Management Liabilities	4,923		—		—		4,923		(52		)	4,871
Total Liabilities	8,194		—		—		8,194		(500		)	7,694

Total MTM Derivative Contract Net Assets (Liabilities)	$	15,071	$	—	$	—	$	15,071	$	500		$	15,571

OPCo

Fair Value of Derivative Instruments

December 31, 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	$	7,242	$	—	$	—	$	7,242	$	—		$	7,242
Long-term Risk Management Assets	45,102		—		—		45,102		—			45,102
Total Assets	52,344		—		—		52,344		—			52,344

Current Risk Management Liabilities	2,045		—		—		2,045		(102		)	1,943
Long-term Risk Management Liabilities	3,013		—		—		3,013		—			3,013
Total Liabilities	5,058		—		—		5,058		(102		)	4,956

Total MTM Derivative Contract Net Assets (Liabilities)	$	47,286	$	—	$	—	$	47,286	$	102		$	47,388


(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, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	(369	)	$	350		$	(917	)	$	(9	)	$	(7	)
Sales to AEP Affiliates	1,156			3,336			—			—			—
Other Operation Expense	(88		)	(63		)	(128		)	(109		)	(127		)
Maintenance Expense	(164		)	(86		)	(140		)	(88		)	(88		)
Purchased Electricity for Resale	831			15			30			—			—
Regulatory Assets (a)	861			(981		)	—			(190		)	188
Regulatory Liabilities (a)	3,197			(1,718		)	(22,281		)	(498		)	1,137
Total Gain (Loss) on Risk Management Contracts	$	5,424		$	853		$	(23,436	)	$	(894	)	$	1,103

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 Nine Months Ended September 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	790		$	3,591		$	(882	)	$	16		$	19
Sales to AEP Affiliates	1,511			4,341			—			—			—
Other Operation Expense	(287		)	(221		)	(389		)	(307		)	(373		)
Maintenance Expense	(503		)	(221		)	(396		)	(248		)	(265		)
Purchased Electricity for Resale	1,571			347			30			—			—
Regulatory Assets (a)	2,136			(1,213		)	—			615			(1,234		)
Regulatory Liabilities (a)	31,797			4,121			(24,880		)	5,076			14,446
Total Gain (Loss) on Risk Management Contracts	$	37,015		$	10,745		$	(26,517	)	$	5,152		$	12,593

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	)


(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, 2015



	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	$	—	$	—	$	—	$	—	$	—	$	3,805
I&M	—		—		—		—		—		(13,604		)
OPCo	—		—		—		—		—		4,572
PSO	—		—		—		—		—		4,374
SWEPCo	—		—		—		—		—		(9,470		)



	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	$	—	$	734		0
I&M	—		(1,277		)	0
OPCo	—		1,282			0
PSO	—		771			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 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	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


(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, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	2,913	$	97
I&M	—		—		1,976		66
OPCo	—		—		—		—
PSO	—		—		2,692		3,247
SWEPCo	—		—		3,328		58



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Public Service Co Of Oklahoma [Member]



	September 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	5,310	$	—	$	5,288
I&M	3,601		—		3,586
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

September 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	62,306		30,345		13,470		17,580		21,736
Coal	Tons	116		1,468		—		—		2,125
Natural Gas	MMBtus	256		174		—		—		—
Heating Oil and Gasoline	Gallons	1,763		836		1,858		1,019		1,166
Interest Rate	USD	$	2,645	$	1,794	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	September 30, 2015				December 31, 2014
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	$	—	$	1,688	$	68	$	98
I&M	—		333		163		47
OPCo	—		500		—		102
PSO	—		280		—		54
SWEPCo	—		319		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

PSO

Fair Value of Derivative Instruments

September 30, 2015



	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	$	1,166	$	—	$	—	$	1,166	$	(131	)	$	1,035
Long-term Risk Management Assets	—		—		—		—		—			—
Total Assets	1,166		—		—		1,166		(131		)	1,035

Current Risk Management Liabilities	454		—		—		454		(384		)	70
Long-term Risk Management Liabilities	35		—		—		35		(27		)	8
Total Liabilities	489		—		—		489		(411		)	78

Total MTM Derivative Contract Net Assets (Liabilities)	$	677	$	—	$	—	$	677	$	280		$	957

PSO

Fair Value of Derivative Instruments

December 31, 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	$	360		$	—	$	—	$	360		$	(360	)	$	—
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	360			—		—		360			(360		)	—

Current Risk Management Liabilities	1,332			—		—		1,332			(414		)	918
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,332			—		—		1,332			(414		)	918

Total MTM Derivative Contract Net Assets (Liabilities)	$	(972	)	$	—	$	—	$	(972	)	$	54		$	(918	)


(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, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	(369	)	$	350		$	(917	)	$	(9	)	$	(7	)
Sales to AEP Affiliates	1,156			3,336			—			—			—
Other Operation Expense	(88		)	(63		)	(128		)	(109		)	(127		)
Maintenance Expense	(164		)	(86		)	(140		)	(88		)	(88		)
Purchased Electricity for Resale	831			15			30			—			—
Regulatory Assets (a)	861			(981		)	—			(190		)	188
Regulatory Liabilities (a)	3,197			(1,718		)	(22,281		)	(498		)	1,137
Total Gain (Loss) on Risk Management Contracts	$	5,424		$	853		$	(23,436	)	$	(894	)	$	1,103

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 Nine Months Ended September 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	790		$	3,591		$	(882	)	$	16		$	19
Sales to AEP Affiliates	1,511			4,341			—			—			—
Other Operation Expense	(287		)	(221		)	(389		)	(307		)	(373		)
Maintenance Expense	(503		)	(221		)	(396		)	(248		)	(265		)
Purchased Electricity for Resale	1,571			347			30			—			—
Regulatory Assets (a)	2,136			(1,213		)	—			615			(1,234		)
Regulatory Liabilities (a)	31,797			4,121			(24,880		)	5,076			14,446
Total Gain (Loss) on Risk Management Contracts	$	37,015		$	10,745		$	(26,517	)	$	5,152		$	12,593

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	)


(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, 2015



	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	$	—	$	—	$	—	$	—	$	—	$	3,805
I&M	—		—		—		—		—		(13,604		)
OPCo	—		—		—		—		—		4,572
PSO	—		—		—		—		—		4,374
SWEPCo	—		—		—		—		—		(9,470		)



	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	$	—	$	734		0
I&M	—		(1,277		)	0
OPCo	—		1,282			0
PSO	—		771			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 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	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


(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, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	2,913	$	97
I&M	—		—		1,976		66
OPCo	—		—		—		—
PSO	—		—		2,692		3,247
SWEPCo	—		—		3,328		58



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Southwestern Electric Power Co [Member]



	September 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	5,310	$	—	$	5,288
I&M	3,601		—		3,586
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

September 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	62,306		30,345		13,470		17,580		21,736
Coal	Tons	116		1,468		—		—		2,125
Natural Gas	MMBtus	256		174		—		—		—
Heating Oil and Gasoline	Gallons	1,763		836		1,858		1,019		1,166
Interest Rate	USD	$	2,645	$	1,794	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	September 30, 2015				December 31, 2014
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	$	—	$	1,688	$	68	$	98
I&M	—		333		163		47
OPCo	—		500		—		102
PSO	—		280		—		54
SWEPCo	—		319		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

SWEPCo

Fair Value of Derivative Instruments

September 30, 2015



	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	$	1,442		$	—	$	—	$	1,442		$	(162	)	$	1,280
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	1,442			—		—		1,442			(162		)	1,280

Current Risk Management Liabilities	1,752			—		—		1,752			(450		)	1,302
Long-term Risk Management Liabilities	788			—		—		788			(31		)	757
Total Liabilities	2,540			—		—		2,540			(481		)	2,059

Total MTM Derivative Contract Net Assets (Liabilities)	$	(1,098	)	$	—	$	—	$	(1,098	)	$	319		$	(779	)

SWEPCo

Fair Value of Derivative Instruments

December 31, 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	$	471		$	—	$	—	$	471		$	(440	)	$	31
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	471			—		—		471			(440		)	31

Current Risk Management Liabilities	1,584			—		—		1,584			(502		)	1,082
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,584			—		—		1,584			(502		)	1,082

Total MTM Derivative Contract Net Assets (Liabilities)	$	(1,113	)	$	—	$	—	$	(1,113	)	$	62		$	(1,051	)


(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, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	(369	)	$	350		$	(917	)	$	(9	)	$	(7	)
Sales to AEP Affiliates	1,156			3,336			—			—			—
Other Operation Expense	(88		)	(63		)	(128		)	(109		)	(127		)
Maintenance Expense	(164		)	(86		)	(140		)	(88		)	(88		)
Purchased Electricity for Resale	831			15			30			—			—
Regulatory Assets (a)	861			(981		)	—			(190		)	188
Regulatory Liabilities (a)	3,197			(1,718		)	(22,281		)	(498		)	1,137
Total Gain (Loss) on Risk Management Contracts	$	5,424		$	853		$	(23,436	)	$	(894	)	$	1,103

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 Nine Months Ended September 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	790		$	3,591		$	(882	)	$	16		$	19
Sales to AEP Affiliates	1,511			4,341			—			—			—
Other Operation Expense	(287		)	(221		)	(389		)	(307		)	(373		)
Maintenance Expense	(503		)	(221		)	(396		)	(248		)	(265		)
Purchased Electricity for Resale	1,571			347			30			—			—
Regulatory Assets (a)	2,136			(1,213		)	—			615			(1,234		)
Regulatory Liabilities (a)	31,797			4,121			(24,880		)	5,076			14,446
Total Gain (Loss) on Risk Management Contracts	$	37,015		$	10,745		$	(26,517	)	$	5,152		$	12,593

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	)


(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, 2015



	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	$	—	$	—	$	—	$	—	$	—	$	3,805
I&M	—		—		—		—		—		(13,604		)
OPCo	—		—		—		—		—		4,572
PSO	—		—		—		—		—		4,374
SWEPCo	—		—		—		—		—		(9,470		)



	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	$	—	$	734		0
I&M	—		(1,277		)	0
OPCo	—		1,282			0
PSO	—		771			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 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	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


(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, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	2,913	$	97
I&M	—		—		1,976		66
OPCo	—		—		—		—
PSO	—		—		2,692		3,247
SWEPCo	—		—		3,328		58



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166