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Financing Activities

12 Months Ended

Dec. 31, 2011

13. FINANCING ACTIVITIES

AEP Common Stock

In April 2009, we issued 69 million shares of common stock at $24.50 per share for net proceeds of $1.64 billion, which were primarily used to repay cash drawn under our credit facilities in the second quarter of 2009.

Set forth below is a reconciliation of common stock share activity for the years ended December 31, 2011, 2010 and 2009:

		Held in
Shares of AEP Common Stock	Issued	Treasury
Balance, December 31, 2008	426,321,248	20,249,992
Issued	72,012,017	-
Treasury Stock Acquired	-	28,866
Balance, December 31, 2009	498,333,265	20,278,858
Issued	2,781,616	-
Treasury Stock Acquired	-	28,867
Balance, December 31, 2010	501,114,881	20,307,725
Issued	2,644,579	-
Treasury Stock Acquired	-	28,867
Balance, December 31, 2011	503,759,460	20,336,592

Preferred Stock

In December 2011, AEP subsidiaries redeemed all of their outstanding preferred stock with a par value of $60 million at a premium, resulting in a $2.8 million loss, which is included in Preferred Stock Dividend Requirements of Subsidiaries Including Capital Stock Expense on our statement of income. The redeemed shares are no longer outstanding and represent only the right to receive the applicable redemption price, to the extent the shares have not yet been presented for payment.

Long-term Debt

		Weighted
		Average
		Interest
		Rate at			Outstanding at
		December 31,	Interest Rate Ranges at December 31,		December 31,
Type of Debt and Maturity		2011	2011	2010	2011		2010
					(in millions)
Senior Unsecured Notes
	2011-2040	5.85%	0.955%-8.13%	0.702%-8.13%	$	11,737	$	11,669

Pollution Control Bonds (a)
	2011-2038 (b)	3.57%	0.06%-6.30%	0.29%-6.30%		2,112		2,263

Notes Payable (c)
	2011-2026	4.77%	2.029%-8.03%	2.07%-8.03%		402		396

Securitization Bonds
	2013-2020	5.36%	4.98%-6.25%	4.98%-6.25%		1,688		1,847

Junior Subordinated Debentures (d)
	2063	8.75%	8.75%	8.75%		315		315

Spent Nuclear Fuel Obligation (e)						265		265

Other Long-term Debt
	2011-2059	6.07%	3.00%-13.718%	1.3125%-13.718%		29		91

Fair Value of Interest Rate Hedges						7		6
Unamortized Discount, Net						(39)		(41)
Total Long-term Debt Outstanding						16,516		16,811
Long-term Debt Due Within One Year						1,433		1,309
Long-term Debt					$	15,083	$	15,502

(a) For certain series of pollution control bonds, interest rates are subject to periodic adjustment. Certain series may be purchased on demand at periodic interest adjustment dates. Letters of credit from banks, standby bond purchase agreements and insurance policies support certain series.

(b) Certain pollution control bonds are subject to redemption earlier than the maturity date. Consequently, these bonds have been classified for maturity purposes as Long-term Debt Due Within One Year on our balance sheets.

(c) Notes payable represent outstanding promissory notes issued under term loan agreements and credit agreements with a number of banks and other financial institutions. At expiration, all notes then issued and outstanding are due and payable. Interest rates are both fixed and variable. Variable rates generally relate to specified short-term interest rates.

(d) Debentures will mature on March 1, 2063, subject to extensions to no later than March 1, 2068, and are callable at par any time on or after March 1, 2013.

(e) Spent nuclear fuel obligation consists of a liability along with accrued interest for disposal of spent nuclear fuel (see "SNF Disposal" section of Note 5).

Long-term debt outstanding at December 31, 2011 is payable as follows:

											After
	2012		2013		2014		2015		2016		2016		Total
	(in millions)
Principal Amount	$	1,433	$	1,383	$	1,074	$	1,496	$	712	$	10,457	$	16,555
Unamortized Discount, Net														(39)
Total Long-term Debt Outstanding													$	16,516

In January 2012, TCC retired $98 million of its outstanding Securitization Bonds.

In January and February 2012, I&M retired $2 million and $12 million, respectively, of Notes Payable related to DCC Fuel.

In February 2012, SWEPCo issued $275 million of 3.55% Senior Unsecured Notes due in 2022 and $65 million of 4.58% Notes Payable due in 2032.

In February 2012, APCo retired $30 million of 6.05% Pollution Control Bonds due in 2024 and $19.5 million of 5% Pollution Control Bonds due in 2021. As of December 31, 2011, these bonds were classified for maturity purposes as Long-term Debt Due Within One Year on our balance sheet.

As of December 31, 2011, trustees held, on our behalf, $478 million of our reacquired Pollution Control Bonds.

Dividend Restrictions

Parent Restrictions

The holders of our common stock are entitled to receive the dividends declared by our Board of Directors provided funds are legally available for such dividends. Our income derives from our common stock equity in the earnings of our utility subsidiaries.

Pursuant to the leverage restrictions in our credit agreements, we must maintain a percentage of debt to total capitalization at a level that does not exceed 67.5%. The payment of cash dividends indirectly results in an increase in the percentage of debt to total capitalization of the company distributing the dividend. The method for calculating outstanding debt and capitalization is contractually defined in the credit agreements. None of AEP's retained earnings were restricted for the purpose of the payment of dividends.

We have issued $315 million of Junior Subordinated Debentures. The debentures will mature on March 1, 2063, subject to extensions to no later than March 1, 2068, and are callable at par any time on or after March 1, 2013. We have the option to defer interest payments on the debentures for one or more periods of up to 10 consecutive years per period. During any period in which we defer interest payments, we may not declare or pay any dividends or distributions on, or redeem, repurchase or acquire our common stock. We do not anticipate any deferral of those interest payments in the foreseeable future.

Utility Subsidiaries' Restrictions

Various financing arrangements and regulatory requirements may impose certain restrictions on the ability of our utility subsidiaries to transfer funds to us in the form of dividends. Specifically, several of our public utility subsidiaries have credit agreements that contain a covenant that limits their debt to capitalization ratio to 67.5%. At December 31, 2011, the amount of restricted net assets of AEP's subsidiaries that may not be distributed to Parent in the form of a loan, advance or dividend was approximately $6 billion.

The Federal Power Act prohibits the utility subsidiaries from participating “in the making or paying of any dividends of such public utility from any funds properly included in capital account.” The term “capital account” is not defined in the Federal Power Act or its regulations. Management understands “capital account” to mean the value of the common stock. This restriction does not limit the ability of the utility subsidiaries to pay dividends out of retained earnings.

Lines of Credit and Short-term Debt

We use our commercial paper program to meet the short-term borrowing needs of our subsidiaries. The program is used to fund both a Utility Money Pool, which funds the utility subsidiaries, and a Nonutility Money Pool, which funds the majority of the nonutility subsidiaries. In addition, the program also funds, as direct borrowers, the short-term debt requirements of other subsidiaries that are not participants in either money pool for regulatory or operational reasons. As of December 31, 2011, we had credit facilities totaling $3.25 billion to support our commercial paper program. The maximum amount of commercial paper outstanding during 2011 was $1.2 billion and the weighted average interest rate of commercial paper outstanding during the year was 0.4%. Our outstanding short-term debt was as follows:

	December 31,
	2011				2010
	Outstanding		Interest		Outstanding		Interest
Type of Debt	Amount		Rate (a)		Amount		Rate (a)
	(in millions)				(in millions)
Securitized Debt for Receivables (b)	$	666	0.27	%	$	690	0.31	%
Commercial Paper		967	0.51	%		650	0.52	%
Line of Credit – Sabine (c)		17	1.79	%		6	2.15	%
Total Short-term Debt	$	1,650			$	1,346

(a) Weighted average rate.

(b) Amount of securitized debt for receivables as accounted for under the "Transfers and Servicing" accounting guidance.

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 5.

Securitized Accounts Receivable – AEP Credit

AEP Credit has a receivables securitization agreement with bank conduits. Under the securitization agreement, AEP Credit receives financing from the bank conduits for the interest in the receivables AEP Credit acquires from affiliated utility subsidiaries. AEP Credit continues to service the receivables. These securitized transactions allow AEP Credit to repay its outstanding debt obligations, continue to purchase our operating companies' receivables and accelerate AEP Credit's cash collections.

In July 2011, AEP Credit renewed its receivables securitization agreement. The agreement provides commitments of $750 million from bank conduits to finance receivables from AEP Credit with an increase to $800 million for the months of July, August and September to accommodate seasonal demand. A commitment of $375 million, with the seasonal increase to $425 million for the months of July, August and September, expires in June 2012 and the remaining commitment of $375 million expires in June 2014.

Accounts receivable information for AEP Credit is as follows:


		Years Ended December 31,
		2011			2010			2009
		(dollars in millions)
Proceeds from Sale of Accounts Receivable		$	NA		$	NA		$	7,043
Loss on Sale of Accounts Receivable			NA			NA			3
Average Variable Discount Rate on Sale of
	Accounts Receivable		NA			NA			0.57	%
Effective Interest Rates on Securitization of
	Accounts Receivable		0.27	%		0.31	%		NA
Net Uncollectible Accounts Receivable Written Off			37			22			28

NA Not Applicable

		December 31,
		2011			2010
		(in millions)
Accounts Receivable Retained Interest and Pledged as Collateral
	Less Uncollectible Accounts	$	902	$	923
Total Principal Outstanding			666		690
Delinquent Securitized Accounts Receivable			38		50
Bad Debt Reserves Related to Securitization/Sale of Accounts Receivable			18		26
Unbilled Receivables Related to Securitization/Sale of Accounts Receivable			370		354

Customer accounts receivable retained and securitized for our operating companies are managed by AEP Credit. AEP Credit's delinquent customer accounts receivable represents accounts greater than 30 days past due.

Appalachian Power Co [Member]

Debt Disclosure [Abstract]

Financing Activities

13. FINANCING ACTIVITIES

Preferred Stock

In December 2011, the Registrant Subsidiaries redeemed all of their outstanding preferred stock, resulting in a loss, which is included in Preferred Stock Dividend Requirements Including Capital Stock Expense on the statements of income. The redeemed shares are no longer outstanding and represent only the right to receive the applicable redemption price, to the extent the shares have not yet been presented for payment. The par value of preferred stock redeemed and the loss recorded by the Registrant Subsidiaries was as follows:

	Par Value of		Loss on
Company	Stock Redeemed		Redemption
		(in thousands)
APCo	$	17,736	$	1,013
I&M		8,072		314
OPCo		16,613		488
PSO		4,882		254
SWEPCo		4,694		369

			Number of Shares Redeemed for
			the Years Ended December 31,
Company	Series		2011	2010	2009
APCo	4.50	%	177,465	53	2
I&M	4.12	%	11,055	-	-
I&M	4.125	%	55,257	44	34
I&M	4.56	%	14,412	-	-
OPCo	4.08	%	14,495	100	-
OPCo	4.20	%	22,824	-	-
OPCo	4.40	%	31,482	-	-
OPCo	4.50	%	97,357	6	10
PSO	4.00	%	44,508	-	40
PSO	4.24	%	4,310	3,759	-
SWEPCo	4.28	%	7,386	-	-
SWEPCo	4.65	%	1,907	-	-
SWEPCo	5.00	%	37,665	8	-

Long-term Debt

There are certain limitations on establishing liens against the Registrant Subsidiaries' assets under their respective indentures. None of the long-term debt obligations of the Registrant Subsidiaries have been guaranteed or secured by AEP or any of its affiliates.

The following details long-term debt outstanding as of December 31, 2011 and 2010:

		Weighted
		Average
		Interest
		Rate at			Outstanding at
		December 31,	Interest Rate Ranges at December 31,		December 31,
Company	Maturity	2011	2011	2010	2011		2010

Senior Unsecured Notes					(in thousands)
APCo	2011-2038	5.86%	3.40%-7.95%	3.40%-7.95%	$	3,141,843	$	3,042,060
I&M	2012-2037	6.25%	5.05%-7.00%	5.05%-7.00%		1,270,599		1,270,116
OPCo	2012-2035	5.61%	0.955%-6.60%	0.702%-6.60%		3,291,823		3,291,027
PSO	2011-2037	5.52%	4.40%-6.625%	4.70%-6.625%		896,023		922,576
SWEPCo	2015-2040	5.92%	4.90%-6.45%	4.90%-6.45%		1,548,437		1,548,185

Pollution Control Bonds (a)
APCo	2011-2038 (b)	2.27%	0.07%-6.05%	0.29%-6.05%		582,000		516,650
I&M	2011-2025 (b)	4.02%	0.06%-6.25%	0.33%-6.25%		266,494		266,456
OPCo	2011-2038 (b)	3.81%	0.07%-5.80%	0.30%-5.80%		562,325		677,325
PSO	2014-2020	5.03%	4.45%-5.25%	4.45%-5.25%		46,360		46,360
SWEPCo	2011-2018	4.28%	3.25%-4.95%	3.25%-4.95%		135,200		176,335

Notes Payable - Affiliated
OPCo	2015	5.25%	5.25%	5.25%		200,000		200,000

Notes Payable - Nonaffiliated
I&M	2013-2016	3.01%	2.029%-5.44%	2.07%-5.44%		234,590		202,753
SWEPCo	2012-2024	6.66%	6.37%-7.03%	6.37%-7.03%		45,000		45,000

Spent Nuclear Fuel Obligation (c)
I&M						265,065		264,901

Other Long-term Debt
APCo	2026	13.718%	13.718%	13.718%		2,408		2,431
I&M	2025	6.00%	6.00%	-		20,927		-
PSO	2027	3.00%	3.00%	3.00%		4,981		2,250

(c) Spent nuclear fuel obligation consists of a liability along with accrued interest for disposal of spent nuclear fuel (see “SNF Disposal” section of Note 5).

Long-term debt outstanding at December 31, 2011 is payable as follows:

		APCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
2012		$	594,525	$	279,075	$	244,500	$	311	$	20,000
2013			70,029		78,977		806,000		479		-
2014			100,033		322,972		403,580		34,193		-
2015			500,037		132,813		286,000		508		303,500
2016			43		2,662		350,000		150,523		-
After 2016			2,469,741		1,246,083		1,972,245		765,327		1,406,700
Principal Amount			3,734,408		2,062,582		4,062,325		951,341		1,730,200
Unamortized Discount, Net			(8,157)		(4,907)		(8,177)		(3,977)		(1,563)
Total Long-term Debt
	Outstanding	$	3,726,251	$	2,057,675	$	4,054,148	$	947,364	$	1,728,637

Dividend Restrictions

The Registrant Subsidiaries pay dividends to Parent provided funds are legally available. Various financing arrangements and regulatory requirements may impose certain restrictions on the ability of the Registrant Subsidiaries to transfer funds to Parent in the form of dividends.

Federal Power Act

The Federal Power Act prohibits each of the Registrant Subsidiaries from participating “in the making or paying of any dividends of such public utility from any funds properly included in capital account.” The term “capital account” is not defined in the Federal Power Act or its regulations. As applicable, the Registrant Subsidiaries understand “capital account” to mean the value of the common stock.

Additionally, the Federal Power Act creates a reserve on earnings attributable to hydroelectric generating plants. Because of their respective ownership of such plants, this reserve applies to APCo, I&M and OPCo.

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Leverage Restrictions

Pursuant to the credit agreement leverage restrictions, APCo, I&M and OPCo must maintain a percentage of debt to total capitalization at a level that does not exceed 67.5%. At December 31, 2011, $59 million of APCo's retained earnings and none of I&M's or OPCo's retained earnings have restrictions related to the payment of dividends to Parent.

Utility Money Pool – AEP System

The AEP System uses a corporate borrowing program to meet the short-term borrowing needs of its subsidiaries. The corporate borrowing program includes a Utility Money Pool, which funds the utility subsidiaries. The AEP System Utility Money Pool operates in accordance with the terms and conditions approved in a regulatory order. The amount of outstanding loans (borrowings) to/from the Utility Money Pool as of December 31, 2011 and 2010 is included in Advances to/from Affiliates on each of the Registrant Subsidiaries' balance sheets. The Utility Money Pool participants' money pool activity and their corresponding authorized borrowing limits for the years ended December 31, 2011 and 2010 are described in the following tables:

Year Ended December 31, 2011:

									Net
									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,378	$	96,186	$	(176,240)	$	600,000
I&M		57,352		219,386		23,793		56,999		95,714		500,000
OPCo		46,761		452,187		31,365		225,728		219,458		600,000
PSO		96,034		255,611		41,971		88,805		39,876		300,000
SWEPCo		136,752		105,184		47,232		38,798		(132,473)		350,000

Year Ended December 31, 2010:

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2010		Limit
	(in thousands)
APCo	$	438,039	$	-	$	227,002	$	-	$	(128,331)	$	600,000
I&M		42,769		223,111		17,972		107,123		(42,769)		500,000
OPCo		-		655,118		-		304,747		154,702		950,000
PSO		107,320		74,751		45,287		31,211		(91,382)		300,000
SWEPCo		78,616		274,958		39,458		184,126		86,222		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Years Ended December 31,
	2011		2010		2009
Maximum Interest Rate	0.56	%	0.55	%	2.28	%
Minimum Interest Rate	0.06	%	0.09	%	0.15	%

The average interest rates for funds borrowed from and loaned to the Utility Money Pool for the years ended December 31, 2011, 2010 and 2009 are summarized for all Registrant Subsidiaries in the following table:

	Average Interest Rate						Average Interest Rate
	for Funds Borrowed						for Funds Loaned
	from Utility Money Pool for						to Utility Money Pool for
	Years Ended December 31,						Years Ended December 31,
Company	2011		2010		2009		2011		2010		2009
APCo	0.42	%	0.26	%	0.89	%	0.32	%	-	%	-	%
I&M	0.39	%	0.43	%	1.46	%	0.38	%	0.24	%	0.26	%
OPCo	0.45	%	-	%	1.19	%	0.35	%	0.22	%	0.21	%
PSO	0.41	%	0.31	%	2.01	%	0.32	%	0.17	%	0.56	%
SWEPCo	0.40	%	0.19	%	1.66	%	0.33	%	0.27	%	0.52	%

Interest expense related to the Utility Money Pool is included in Interest Expense on each of the Registrant Subsidiaries' statements of income. The Registrant Subsidiaries incurred interest expense for amounts borrowed from the Utility Money Pool as follows:

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	198	$	611	$	1,887
I&M		20		17		924
OPCo		12		16		3,156
PSO		85		102		86
SWEPCo		174		11		68

Interest income related to the Utility Money Pool is included in Interest Income on each of the Registrant Subsidiaries' statements of income. The Registrant Subsidiaries earned interest income for amounts advanced to the Utility Money Pool as follows:

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	313	$	9	$	-
I&M		226		219		129
OPCo		820		708		228
PSO		250		19		322
SWEPCo		32		438		278

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 5.

Sale of Receivables – AEP Credit

Under a sale of receivables arrangement, the Registrant Subsidiaries sell, without recourse, certain of their customer accounts receivable and accrued unbilled revenue balances to AEP Credit and are charged a fee based on AEP Credit's financing costs, administrative costs and uncollectible accounts experience for each Registrant Subsidiary's receivables. APCo does not have regulatory authority to sell its West Virginia accounts receivable. The costs of customer accounts receivable sold are reported in Other Operation on the Registrant Subsidiaries' income statements. The Registrant Subsidiaries manage and service their customer accounts receivable sold.

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of December 31, 2011 and 2010 was as follows:

	December 31,
Company	2011		2010
	(in thousands)
APCo	$	121,605	$	145,515
I&M		121,597		123,366
OPCo		346,695		344,698
PSO		123,172		121,679
SWEPCo		140,440		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,612	$	9,194	$	5,132
I&M		6,168		6,770		6,191
OPCo		18,851		20,630		19,994
PSO		6,363		5,406		6,954
SWEPCo		5,672		5,688		6,171

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	1,248,253	$	1,418,487	$	1,258,860
I&M		1,323,068		1,283,955		1,228,502
OPCo		3,461,758		3,495,609		3,201,767
PSO		1,299,190		1,196,586		1,028,770
SWEPCo		1,495,397		1,402,525		1,300,393

Indiana Michigan Power Co [Member]

Debt Disclosure [Abstract]

Financing Activities

13. FINANCING ACTIVITIES

Preferred Stock

	Par Value of		Loss on
Company	Stock Redeemed		Redemption
		(in thousands)
APCo	$	17,736	$	1,013
I&M		8,072		314
OPCo		16,613		488
PSO		4,882		254
SWEPCo		4,694		369

			Number of Shares Redeemed for
			the Years Ended December 31,
Company	Series		2011	2010	2009
APCo	4.50	%	177,465	53	2
I&M	4.12	%	11,055	-	-
I&M	4.125	%	55,257	44	34
I&M	4.56	%	14,412	-	-
OPCo	4.08	%	14,495	100	-
OPCo	4.20	%	22,824	-	-
OPCo	4.40	%	31,482	-	-
OPCo	4.50	%	97,357	6	10
PSO	4.00	%	44,508	-	40
PSO	4.24	%	4,310	3,759	-
SWEPCo	4.28	%	7,386	-	-
SWEPCo	4.65	%	1,907	-	-
SWEPCo	5.00	%	37,665	8	-

Long-term Debt

The following details long-term debt outstanding as of December 31, 2011 and 2010:

		Weighted
		Average
		Interest
		Rate at			Outstanding at
		December 31,	Interest Rate Ranges at December 31,		December 31,
Company	Maturity	2011	2011	2010	2011		2010

Senior Unsecured Notes					(in thousands)
APCo	2011-2038	5.86%	3.40%-7.95%	3.40%-7.95%	$	3,141,843	$	3,042,060
I&M	2012-2037	6.25%	5.05%-7.00%	5.05%-7.00%		1,270,599		1,270,116
OPCo	2012-2035	5.61%	0.955%-6.60%	0.702%-6.60%		3,291,823		3,291,027
PSO	2011-2037	5.52%	4.40%-6.625%	4.70%-6.625%		896,023		922,576
SWEPCo	2015-2040	5.92%	4.90%-6.45%	4.90%-6.45%		1,548,437		1,548,185

Pollution Control Bonds (a)
APCo	2011-2038 (b)	2.27%	0.07%-6.05%	0.29%-6.05%		582,000		516,650
I&M	2011-2025 (b)	4.02%	0.06%-6.25%	0.33%-6.25%		266,494		266,456
OPCo	2011-2038 (b)	3.81%	0.07%-5.80%	0.30%-5.80%		562,325		677,325
PSO	2014-2020	5.03%	4.45%-5.25%	4.45%-5.25%		46,360		46,360
SWEPCo	2011-2018	4.28%	3.25%-4.95%	3.25%-4.95%		135,200		176,335

Notes Payable - Affiliated
OPCo	2015	5.25%	5.25%	5.25%		200,000		200,000

Notes Payable - Nonaffiliated
I&M	2013-2016	3.01%	2.029%-5.44%	2.07%-5.44%		234,590		202,753
SWEPCo	2012-2024	6.66%	6.37%-7.03%	6.37%-7.03%		45,000		45,000

Spent Nuclear Fuel Obligation (c)
I&M						265,065		264,901

Other Long-term Debt
APCo	2026	13.718%	13.718%	13.718%		2,408		2,431
I&M	2025	6.00%	6.00%	-		20,927		-
PSO	2027	3.00%	3.00%	3.00%		4,981		2,250

(c) Spent nuclear fuel obligation consists of a liability along with accrued interest for disposal of spent nuclear fuel (see “SNF Disposal” section of Note 5).

Long-term debt outstanding at December 31, 2011 is payable as follows:

		APCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
2012		$	594,525	$	279,075	$	244,500	$	311	$	20,000
2013			70,029		78,977		806,000		479		-
2014			100,033		322,972		403,580		34,193		-
2015			500,037		132,813		286,000		508		303,500
2016			43		2,662		350,000		150,523		-
After 2016			2,469,741		1,246,083		1,972,245		765,327		1,406,700
Principal Amount			3,734,408		2,062,582		4,062,325		951,341		1,730,200
Unamortized Discount, Net			(8,157)		(4,907)		(8,177)		(3,977)		(1,563)
Total Long-term Debt
	Outstanding	$	3,726,251	$	2,057,675	$	4,054,148	$	947,364	$	1,728,637

In January and February 2012, I&M retired $2 million and $12 million, respectively, of Notes Payable related to DCC Fuel.

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Leverage Restrictions

Utility Money Pool – AEP System

Year Ended December 31, 2011:

									Net
									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,378	$	96,186	$	(176,240)	$	600,000
I&M		57,352		219,386		23,793		56,999		95,714		500,000
OPCo		46,761		452,187		31,365		225,728		219,458		600,000
PSO		96,034		255,611		41,971		88,805		39,876		300,000
SWEPCo		136,752		105,184		47,232		38,798		(132,473)		350,000

Year Ended December 31, 2010:

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2010		Limit
	(in thousands)
APCo	$	438,039	$	-	$	227,002	$	-	$	(128,331)	$	600,000
I&M		42,769		223,111		17,972		107,123		(42,769)		500,000
OPCo		-		655,118		-		304,747		154,702		950,000
PSO		107,320		74,751		45,287		31,211		(91,382)		300,000
SWEPCo		78,616		274,958		39,458		184,126		86,222		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Years Ended December 31,
	2011		2010		2009
Maximum Interest Rate	0.56	%	0.55	%	2.28	%
Minimum Interest Rate	0.06	%	0.09	%	0.15	%

	Average Interest Rate						Average Interest Rate
	for Funds Borrowed						for Funds Loaned
	from Utility Money Pool for						to Utility Money Pool for
	Years Ended December 31,						Years Ended December 31,
Company	2011		2010		2009		2011		2010		2009
APCo	0.42	%	0.26	%	0.89	%	0.32	%	-	%	-	%
I&M	0.39	%	0.43	%	1.46	%	0.38	%	0.24	%	0.26	%
OPCo	0.45	%	-	%	1.19	%	0.35	%	0.22	%	0.21	%
PSO	0.41	%	0.31	%	2.01	%	0.32	%	0.17	%	0.56	%
SWEPCo	0.40	%	0.19	%	1.66	%	0.33	%	0.27	%	0.52	%

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	198	$	611	$	1,887
I&M		20		17		924
OPCo		12		16		3,156
PSO		85		102		86
SWEPCo		174		11		68

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	313	$	9	$	-
I&M		226		219		129
OPCo		820		708		228
PSO		250		19		322
SWEPCo		32		438		278

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 5.

Sale of Receivables – AEP Credit

The costs of customer accounts receivable sold are reported in Other Operation on the Registrant Subsidiaries' income statements. The Registrant Subsidiaries manage and service their customer accounts receivable sold.

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of December 31, 2011 and 2010 was as follows:

	December 31,
Company	2011		2010
	(in thousands)
APCo	$	121,605	$	145,515
I&M		121,597		123,366
OPCo		346,695		344,698
PSO		123,172		121,679
SWEPCo		140,440		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,612	$	9,194	$	5,132
I&M		6,168		6,770		6,191
OPCo		18,851		20,630		19,994
PSO		6,363		5,406		6,954
SWEPCo		5,672		5,688		6,171

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	1,248,253	$	1,418,487	$	1,258,860
I&M		1,323,068		1,283,955		1,228,502
OPCo		3,461,758		3,495,609		3,201,767
PSO		1,299,190		1,196,586		1,028,770
SWEPCo		1,495,397		1,402,525		1,300,393

Ohio Power Co [Member]

Debt Disclosure [Abstract]

Financing Activities

13. FINANCING ACTIVITIES

Preferred Stock

	Par Value of		Loss on
Company	Stock Redeemed		Redemption
		(in thousands)
APCo	$	17,736	$	1,013
I&M		8,072		314
OPCo		16,613		488
PSO		4,882		254
SWEPCo		4,694		369

			Number of Shares Redeemed for
			the Years Ended December 31,
Company	Series		2011	2010	2009
APCo	4.50	%	177,465	53	2
I&M	4.12	%	11,055	-	-
I&M	4.125	%	55,257	44	34
I&M	4.56	%	14,412	-	-
OPCo	4.08	%	14,495	100	-
OPCo	4.20	%	22,824	-	-
OPCo	4.40	%	31,482	-	-
OPCo	4.50	%	97,357	6	10
PSO	4.00	%	44,508	-	40
PSO	4.24	%	4,310	3,759	-
SWEPCo	4.28	%	7,386	-	-
SWEPCo	4.65	%	1,907	-	-
SWEPCo	5.00	%	37,665	8	-

Long-term Debt

The following details long-term debt outstanding as of December 31, 2011 and 2010:

		Weighted
		Average
		Interest
		Rate at			Outstanding at
		December 31,	Interest Rate Ranges at December 31,		December 31,
Company	Maturity	2011	2011	2010	2011		2010

Senior Unsecured Notes					(in thousands)
APCo	2011-2038	5.86%	3.40%-7.95%	3.40%-7.95%	$	3,141,843	$	3,042,060
I&M	2012-2037	6.25%	5.05%-7.00%	5.05%-7.00%		1,270,599		1,270,116
OPCo	2012-2035	5.61%	0.955%-6.60%	0.702%-6.60%		3,291,823		3,291,027
PSO	2011-2037	5.52%	4.40%-6.625%	4.70%-6.625%		896,023		922,576
SWEPCo	2015-2040	5.92%	4.90%-6.45%	4.90%-6.45%		1,548,437		1,548,185

Pollution Control Bonds (a)
APCo	2011-2038 (b)	2.27%	0.07%-6.05%	0.29%-6.05%		582,000		516,650
I&M	2011-2025 (b)	4.02%	0.06%-6.25%	0.33%-6.25%		266,494		266,456
OPCo	2011-2038 (b)	3.81%	0.07%-5.80%	0.30%-5.80%		562,325		677,325
PSO	2014-2020	5.03%	4.45%-5.25%	4.45%-5.25%		46,360		46,360
SWEPCo	2011-2018	4.28%	3.25%-4.95%	3.25%-4.95%		135,200		176,335

Notes Payable - Affiliated
OPCo	2015	5.25%	5.25%	5.25%		200,000		200,000

Notes Payable - Nonaffiliated
I&M	2013-2016	3.01%	2.029%-5.44%	2.07%-5.44%		234,590		202,753
SWEPCo	2012-2024	6.66%	6.37%-7.03%	6.37%-7.03%		45,000		45,000

Spent Nuclear Fuel Obligation (c)
I&M						265,065		264,901

Other Long-term Debt
APCo	2026	13.718%	13.718%	13.718%		2,408		2,431
I&M	2025	6.00%	6.00%	-		20,927		-
PSO	2027	3.00%	3.00%	3.00%		4,981		2,250

(c) Spent nuclear fuel obligation consists of a liability along with accrued interest for disposal of spent nuclear fuel (see “SNF Disposal” section of Note 5).

Long-term debt outstanding at December 31, 2011 is payable as follows:

		APCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
2012		$	594,525	$	279,075	$	244,500	$	311	$	20,000
2013			70,029		78,977		806,000		479		-
2014			100,033		322,972		403,580		34,193		-
2015			500,037		132,813		286,000		508		303,500
2016			43		2,662		350,000		150,523		-
After 2016			2,469,741		1,246,083		1,972,245		765,327		1,406,700
Principal Amount			3,734,408		2,062,582		4,062,325		951,341		1,730,200
Unamortized Discount, Net			(8,157)		(4,907)		(8,177)		(3,977)		(1,563)
Total Long-term Debt
	Outstanding	$	3,726,251	$	2,057,675	$	4,054,148	$	947,364	$	1,728,637

As of December 31, 2011, trustees held, on behalf of OPCo, $418 million of its reacquired Pollution Control Bonds.

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Leverage Restrictions

Utility Money Pool – AEP System

Year Ended December 31, 2011:

									Net
									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,378	$	96,186	$	(176,240)	$	600,000
I&M		57,352		219,386		23,793		56,999		95,714		500,000
OPCo		46,761		452,187		31,365		225,728		219,458		600,000
PSO		96,034		255,611		41,971		88,805		39,876		300,000
SWEPCo		136,752		105,184		47,232		38,798		(132,473)		350,000

Year Ended December 31, 2010:

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2010		Limit
	(in thousands)
APCo	$	438,039	$	-	$	227,002	$	-	$	(128,331)	$	600,000
I&M		42,769		223,111		17,972		107,123		(42,769)		500,000
OPCo		-		655,118		-		304,747		154,702		950,000
PSO		107,320		74,751		45,287		31,211		(91,382)		300,000
SWEPCo		78,616		274,958		39,458		184,126		86,222		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Years Ended December 31,
	2011		2010		2009
Maximum Interest Rate	0.56	%	0.55	%	2.28	%
Minimum Interest Rate	0.06	%	0.09	%	0.15	%

	Average Interest Rate						Average Interest Rate
	for Funds Borrowed						for Funds Loaned
	from Utility Money Pool for						to Utility Money Pool for
	Years Ended December 31,						Years Ended December 31,
Company	2011		2010		2009		2011		2010		2009
APCo	0.42	%	0.26	%	0.89	%	0.32	%	-	%	-	%
I&M	0.39	%	0.43	%	1.46	%	0.38	%	0.24	%	0.26	%
OPCo	0.45	%	-	%	1.19	%	0.35	%	0.22	%	0.21	%
PSO	0.41	%	0.31	%	2.01	%	0.32	%	0.17	%	0.56	%
SWEPCo	0.40	%	0.19	%	1.66	%	0.33	%	0.27	%	0.52	%

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	198	$	611	$	1,887
I&M		20		17		924
OPCo		12		16		3,156
PSO		85		102		86
SWEPCo		174		11		68

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	313	$	9	$	-
I&M		226		219		129
OPCo		820		708		228
PSO		250		19		322
SWEPCo		32		438		278

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 5.

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of December 31, 2011 and 2010 was as follows:

	December 31,
Company	2011		2010
	(in thousands)
APCo	$	121,605	$	145,515
I&M		121,597		123,366
OPCo		346,695		344,698
PSO		123,172		121,679
SWEPCo		140,440		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,612	$	9,194	$	5,132
I&M		6,168		6,770		6,191
OPCo		18,851		20,630		19,994
PSO		6,363		5,406		6,954
SWEPCo		5,672		5,688		6,171

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	1,248,253	$	1,418,487	$	1,258,860
I&M		1,323,068		1,283,955		1,228,502
OPCo		3,461,758		3,495,609		3,201,767
PSO		1,299,190		1,196,586		1,028,770
SWEPCo		1,495,397		1,402,525		1,300,393

Public Service Co Of Oklahoma [Member]

Debt Disclosure [Abstract]

Financing Activities

13. FINANCING ACTIVITIES

Preferred Stock

	Par Value of		Loss on
Company	Stock Redeemed		Redemption
		(in thousands)
APCo	$	17,736	$	1,013
I&M		8,072		314
OPCo		16,613		488
PSO		4,882		254
SWEPCo		4,694		369

			Number of Shares Redeemed for
			the Years Ended December 31,
Company	Series		2011	2010	2009
APCo	4.50	%	177,465	53	2
I&M	4.12	%	11,055	-	-
I&M	4.125	%	55,257	44	34
I&M	4.56	%	14,412	-	-
OPCo	4.08	%	14,495	100	-
OPCo	4.20	%	22,824	-	-
OPCo	4.40	%	31,482	-	-
OPCo	4.50	%	97,357	6	10
PSO	4.00	%	44,508	-	40
PSO	4.24	%	4,310	3,759	-
SWEPCo	4.28	%	7,386	-	-
SWEPCo	4.65	%	1,907	-	-
SWEPCo	5.00	%	37,665	8	-

Long-term Debt

The following details long-term debt outstanding as of December 31, 2011 and 2010:

		Weighted
		Average
		Interest
		Rate at			Outstanding at
		December 31,	Interest Rate Ranges at December 31,		December 31,
Company	Maturity	2011	2011	2010	2011		2010

Senior Unsecured Notes					(in thousands)
APCo	2011-2038	5.86%	3.40%-7.95%	3.40%-7.95%	$	3,141,843	$	3,042,060
I&M	2012-2037	6.25%	5.05%-7.00%	5.05%-7.00%		1,270,599		1,270,116
OPCo	2012-2035	5.61%	0.955%-6.60%	0.702%-6.60%		3,291,823		3,291,027
PSO	2011-2037	5.52%	4.40%-6.625%	4.70%-6.625%		896,023		922,576
SWEPCo	2015-2040	5.92%	4.90%-6.45%	4.90%-6.45%		1,548,437		1,548,185

Pollution Control Bonds (a)
APCo	2011-2038 (b)	2.27%	0.07%-6.05%	0.29%-6.05%		582,000		516,650
I&M	2011-2025 (b)	4.02%	0.06%-6.25%	0.33%-6.25%		266,494		266,456
OPCo	2011-2038 (b)	3.81%	0.07%-5.80%	0.30%-5.80%		562,325		677,325
PSO	2014-2020	5.03%	4.45%-5.25%	4.45%-5.25%		46,360		46,360
SWEPCo	2011-2018	4.28%	3.25%-4.95%	3.25%-4.95%		135,200		176,335

Notes Payable - Affiliated
OPCo	2015	5.25%	5.25%	5.25%		200,000		200,000

Notes Payable - Nonaffiliated
I&M	2013-2016	3.01%	2.029%-5.44%	2.07%-5.44%		234,590		202,753
SWEPCo	2012-2024	6.66%	6.37%-7.03%	6.37%-7.03%		45,000		45,000

Spent Nuclear Fuel Obligation (c)
I&M						265,065		264,901

Other Long-term Debt
APCo	2026	13.718%	13.718%	13.718%		2,408		2,431
I&M	2025	6.00%	6.00%	-		20,927		-
PSO	2027	3.00%	3.00%	3.00%		4,981		2,250

(c) Spent nuclear fuel obligation consists of a liability along with accrued interest for disposal of spent nuclear fuel (see “SNF Disposal” section of Note 5).

Long-term debt outstanding at December 31, 2011 is payable as follows:

		APCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
2012		$	594,525	$	279,075	$	244,500	$	311	$	20,000
2013			70,029		78,977		806,000		479		-
2014			100,033		322,972		403,580		34,193		-
2015			500,037		132,813		286,000		508		303,500
2016			43		2,662		350,000		150,523		-
After 2016			2,469,741		1,246,083		1,972,245		765,327		1,406,700
Principal Amount			3,734,408		2,062,582		4,062,325		951,341		1,730,200
Unamortized Discount, Net			(8,157)		(4,907)		(8,177)		(3,977)		(1,563)
Total Long-term Debt
	Outstanding	$	3,726,251	$	2,057,675	$	4,054,148	$	947,364	$	1,728,637

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Utility Money Pool – AEP System

Year Ended December 31, 2011:

									Net
									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,378	$	96,186	$	(176,240)	$	600,000
I&M		57,352		219,386		23,793		56,999		95,714		500,000
OPCo		46,761		452,187		31,365		225,728		219,458		600,000
PSO		96,034		255,611		41,971		88,805		39,876		300,000
SWEPCo		136,752		105,184		47,232		38,798		(132,473)		350,000

Year Ended December 31, 2010:

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2010		Limit
	(in thousands)
APCo	$	438,039	$	-	$	227,002	$	-	$	(128,331)	$	600,000
I&M		42,769		223,111		17,972		107,123		(42,769)		500,000
OPCo		-		655,118		-		304,747		154,702		950,000
PSO		107,320		74,751		45,287		31,211		(91,382)		300,000
SWEPCo		78,616		274,958		39,458		184,126		86,222		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Years Ended December 31,
	2011		2010		2009
Maximum Interest Rate	0.56	%	0.55	%	2.28	%
Minimum Interest Rate	0.06	%	0.09	%	0.15	%

	Average Interest Rate						Average Interest Rate
	for Funds Borrowed						for Funds Loaned
	from Utility Money Pool for						to Utility Money Pool for
	Years Ended December 31,						Years Ended December 31,
Company	2011		2010		2009		2011		2010		2009
APCo	0.42	%	0.26	%	0.89	%	0.32	%	-	%	-	%
I&M	0.39	%	0.43	%	1.46	%	0.38	%	0.24	%	0.26	%
OPCo	0.45	%	-	%	1.19	%	0.35	%	0.22	%	0.21	%
PSO	0.41	%	0.31	%	2.01	%	0.32	%	0.17	%	0.56	%
SWEPCo	0.40	%	0.19	%	1.66	%	0.33	%	0.27	%	0.52	%

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	198	$	611	$	1,887
I&M		20		17		924
OPCo		12		16		3,156
PSO		85		102		86
SWEPCo		174		11		68

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	313	$	9	$	-
I&M		226		219		129
OPCo		820		708		228
PSO		250		19		322
SWEPCo		32		438		278

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of December 31, 2011 and 2010 was as follows:

	December 31,
Company	2011		2010
	(in thousands)
APCo	$	121,605	$	145,515
I&M		121,597		123,366
OPCo		346,695		344,698
PSO		123,172		121,679
SWEPCo		140,440		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,612	$	9,194	$	5,132
I&M		6,168		6,770		6,191
OPCo		18,851		20,630		19,994
PSO		6,363		5,406		6,954
SWEPCo		5,672		5,688		6,171

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	1,248,253	$	1,418,487	$	1,258,860
I&M		1,323,068		1,283,955		1,228,502
OPCo		3,461,758		3,495,609		3,201,767
PSO		1,299,190		1,196,586		1,028,770
SWEPCo		1,495,397		1,402,525		1,300,393

Southwestern Electric Power Co [Member]

Debt Disclosure [Abstract]

Financing Activities

13. FINANCING ACTIVITIES

Preferred Stock

	Par Value of		Loss on
Company	Stock Redeemed		Redemption
		(in thousands)
APCo	$	17,736	$	1,013
I&M		8,072		314
OPCo		16,613		488
PSO		4,882		254
SWEPCo		4,694		369

			Number of Shares Redeemed for
			the Years Ended December 31,
Company	Series		2011	2010	2009
APCo	4.50	%	177,465	53	2
I&M	4.12	%	11,055	-	-
I&M	4.125	%	55,257	44	34
I&M	4.56	%	14,412	-	-
OPCo	4.08	%	14,495	100	-
OPCo	4.20	%	22,824	-	-
OPCo	4.40	%	31,482	-	-
OPCo	4.50	%	97,357	6	10
PSO	4.00	%	44,508	-	40
PSO	4.24	%	4,310	3,759	-
SWEPCo	4.28	%	7,386	-	-
SWEPCo	4.65	%	1,907	-	-
SWEPCo	5.00	%	37,665	8	-

Long-term Debt

The following details long-term debt outstanding as of December 31, 2011 and 2010:

		Weighted
		Average
		Interest
		Rate at			Outstanding at
		December 31,	Interest Rate Ranges at December 31,		December 31,
Company	Maturity	2011	2011	2010	2011		2010

Senior Unsecured Notes					(in thousands)
APCo	2011-2038	5.86%	3.40%-7.95%	3.40%-7.95%	$	3,141,843	$	3,042,060
I&M	2012-2037	6.25%	5.05%-7.00%	5.05%-7.00%		1,270,599		1,270,116
OPCo	2012-2035	5.61%	0.955%-6.60%	0.702%-6.60%		3,291,823		3,291,027
PSO	2011-2037	5.52%	4.40%-6.625%	4.70%-6.625%		896,023		922,576
SWEPCo	2015-2040	5.92%	4.90%-6.45%	4.90%-6.45%		1,548,437		1,548,185

Pollution Control Bonds (a)
APCo	2011-2038 (b)	2.27%	0.07%-6.05%	0.29%-6.05%		582,000		516,650
I&M	2011-2025 (b)	4.02%	0.06%-6.25%	0.33%-6.25%		266,494		266,456
OPCo	2011-2038 (b)	3.81%	0.07%-5.80%	0.30%-5.80%		562,325		677,325
PSO	2014-2020	5.03%	4.45%-5.25%	4.45%-5.25%		46,360		46,360
SWEPCo	2011-2018	4.28%	3.25%-4.95%	3.25%-4.95%		135,200		176,335

Notes Payable - Affiliated
OPCo	2015	5.25%	5.25%	5.25%		200,000		200,000

Notes Payable - Nonaffiliated
I&M	2013-2016	3.01%	2.029%-5.44%	2.07%-5.44%		234,590		202,753
SWEPCo	2012-2024	6.66%	6.37%-7.03%	6.37%-7.03%		45,000		45,000

Spent Nuclear Fuel Obligation (c)
I&M						265,065		264,901

Other Long-term Debt
APCo	2026	13.718%	13.718%	13.718%		2,408		2,431
I&M	2025	6.00%	6.00%	-		20,927		-
PSO	2027	3.00%	3.00%	3.00%		4,981		2,250

(c) Spent nuclear fuel obligation consists of a liability along with accrued interest for disposal of spent nuclear fuel (see “SNF Disposal” section of Note 5).

Long-term debt outstanding at December 31, 2011 is payable as follows:

		APCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
2012		$	594,525	$	279,075	$	244,500	$	311	$	20,000
2013			70,029		78,977		806,000		479		-
2014			100,033		322,972		403,580		34,193		-
2015			500,037		132,813		286,000		508		303,500
2016			43		2,662		350,000		150,523		-
After 2016			2,469,741		1,246,083		1,972,245		765,327		1,406,700
Principal Amount			3,734,408		2,062,582		4,062,325		951,341		1,730,200
Unamortized Discount, Net			(8,157)		(4,907)		(8,177)		(3,977)		(1,563)
Total Long-term Debt
	Outstanding	$	3,726,251	$	2,057,675	$	4,054,148	$	947,364	$	1,728,637

In February 2012, SWEPCo issued $275 million of 3.55% Senior Unsecured Notes due in 2022 and $65 million of 4.58% Notes Payable due in 2032.

Dividend Restrictions

Federal Power Act

None of these restrictions limit the ability of the Registrant Subsidiaries to pay dividends out of retained earnings.

Utility Money Pool – AEP System

Year Ended December 31, 2011:

									Net
									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2011		Limit
	(in thousands)
APCo	$	217,876	$	393,811	$	117,378	$	96,186	$	(176,240)	$	600,000
I&M		57,352		219,386		23,793		56,999		95,714		500,000
OPCo		46,761		452,187		31,365		225,728		219,458		600,000
PSO		96,034		255,611		41,971		88,805		39,876		300,000
SWEPCo		136,752		105,184		47,232		38,798		(132,473)		350,000

Year Ended December 31, 2010:

									Loans
	Maximum		Maximum		Average		Average		(Borrowings)		Authorized
	Borrowings		Loans		Borrowings		Loans		to/from Utility		Short-term
	from Utility		to Utility		from Utility		to Utility		Money Pool as of		Borrowing
Company	Money Pool		Money Pool		Money Pool		Money Pool		December 31, 2010		Limit
	(in thousands)
APCo	$	438,039	$	-	$	227,002	$	-	$	(128,331)	$	600,000
I&M		42,769		223,111		17,972		107,123		(42,769)		500,000
OPCo		-		655,118		-		304,747		154,702		950,000
PSO		107,320		74,751		45,287		31,211		(91,382)		300,000
SWEPCo		78,616		274,958		39,458		184,126		86,222		350,000

The maximum and minimum interest rates for funds either borrowed from or loaned to the Utility Money Pool were as follows:

	Years Ended December 31,
	2011		2010		2009
Maximum Interest Rate	0.56	%	0.55	%	2.28	%
Minimum Interest Rate	0.06	%	0.09	%	0.15	%

	Average Interest Rate						Average Interest Rate
	for Funds Borrowed						for Funds Loaned
	from Utility Money Pool for						to Utility Money Pool for
	Years Ended December 31,						Years Ended December 31,
Company	2011		2010		2009		2011		2010		2009
APCo	0.42	%	0.26	%	0.89	%	0.32	%	-	%	-	%
I&M	0.39	%	0.43	%	1.46	%	0.38	%	0.24	%	0.26	%
OPCo	0.45	%	-	%	1.19	%	0.35	%	0.22	%	0.21	%
PSO	0.41	%	0.31	%	2.01	%	0.32	%	0.17	%	0.56	%
SWEPCo	0.40	%	0.19	%	1.66	%	0.33	%	0.27	%	0.52	%

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	198	$	611	$	1,887
I&M		20		17		924
OPCo		12		16		3,156
PSO		85		102		86
SWEPCo		174		11		68

	Years Ended December 31,
Company	2011		2010		2009
			(in thousands)
APCo	$	313	$	9	$	-
I&M		226		219		129
OPCo		820		708		228
PSO		250		19		322
SWEPCo		32		438		278

Short-term Debt

The Registrant Subsidiaries’ outstanding short-term debt was as follows:

December 31,

2011

2010

Outstanding

Interest

Outstanding

Interest

Company

Type of Debt

Amount

Rate (a)

Amount

Rate (a)

(in thousands)

SWEPCo

Line of Credit – Sabine

17,016

1.79

6,217

2.15

(a)

Weighted average rate.

Credit Facilities

For a discussion of credit facilities, see “Letters of Credit” section of Note 5.

Sale of Receivables – AEP Credit

The amount of accounts receivable and accrued unbilled revenues under the sale of receivables agreement for each Registrant Subsidiary as of December 31, 2011 and 2010 was as follows:

	December 31,
Company	2011		2010
	(in thousands)
APCo	$	121,605	$	145,515
I&M		121,597		123,366
OPCo		346,695		344,698
PSO		123,172		121,679
SWEPCo		140,440		135,092

The fees paid by the Registrant Subsidiaries to AEP Credit for customer accounts receivable sold were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,612	$	9,194	$	5,132
I&M		6,168		6,770		6,191
OPCo		18,851		20,630		19,994
PSO		6,363		5,406		6,954
SWEPCo		5,672		5,688		6,171

The Registrant Subsidiaries' proceeds on the sale of receivables to AEP Credit were:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	1,248,253	$	1,418,487	$	1,258,860
I&M		1,323,068		1,283,955		1,228,502
OPCo		3,461,758		3,495,609		3,201,767
PSO		1,299,190		1,196,586		1,028,770
SWEPCo		1,495,397		1,402,525		1,300,393

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details