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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment (Tables) [Abstract]

Depreciation, Depletion and Amortization

2011	Regulated												Nonregulated
						Annual											Annual
Functional	Property,					Composite							Property,				Composite
Class of	Plant and			Accumulated		Depreciation				Depreciable			Plant and		Accumulated		Depreciation				Depreciable
Property	Equipment			Depreciation		Rate Ranges				Life Ranges			Equipment		Depreciation		Rate Ranges				Life Ranges
	(in millions)									(in years)			(in millions)								(in years)
Generation	$	14,804		$	6,692	1.6	-	3.8	%	9	-	132	$	10,134	$	3,904	2.6	-	3.5	%	20	-	66
Transmission		9,048			2,600	1.3	-	2.7	%	25	-	87		-		-	-	-	-	%	-	-	-
Distribution		14,783			3,828	2.4	-	4.0	%	11	-	75		-		-	-	-	-	%	-	-	-
CWIP		2,913	(a)		36	NM				NM				208		1	NM				NM
Other		2,587			1,246	1.7	-	9.3	%	5	-	55		1,193		392	NM				NM
Total	$	44,135		$	14,402								$	11,535	$	4,297

2010	Regulated												Nonregulated
						Annual											Annual
Functional	Property,					Composite							Property,				Composite
Class of	Plant and			Accumulated		Depreciation				Depreciable			Plant and		Accumulated		Depreciation				Depreciable
Property	Equipment			Depreciation		Rate Ranges				Life Ranges			Equipment		Depreciation		Rate Ranges				Life Ranges
	(in millions)									(in years)			(in millions)								(in years)
Generation	$	14,147		$	6,537	1.6	-	3.8	%	9	-	132	$	10,205	$	3,788	2.2	-	5.1	%	20	-	70
Transmission		8,576			2,481	1.4	-	3.0	%	25	-	87		-		-	-	-	-	%	-	-	-
Distribution		14,208			3,607	2.4	-	3.9	%	11	-	75		-		-	-	-	-	%	-	-	-
CWIP		2,615	(a)		47	NM				NM				143		9	NM				NM
Other		2,685			1,268	3.0	-	12.5	%	5	-	55		1,161		329	NM				NM
Total	$	42,231		$	13,940								$	11,509	$	4,126

2009		Regulated							Nonregulated
		Annual							Annual
		Composite							Composite
		Depreciation				Depreciable			Depreciation				Depreciable
Functional Class of Property		Rate Ranges				Life Ranges			Rate Ranges				Life Ranges
						(in years)							(in years)
Generation		1.6	-	3.8	%	9	-	132	1.9	-	3.3	%	20	-	70
Transmission		1.4	-	2.7	%	25	-	87	-	-	-	%	-	-	-
Distribution		2.4	-	3.9	%	11	-	75	-	-	-	%	-	-	-
CWIP		NM				NM			NM				NM
Other		4.2	-	12.8	%	5	-	55	NM				NM

(a)	Includes CWIP related to SWEPCo's Arkansas jurisdictional share of the Turk Plant.
NM	Not Meaningful

Asset Retirement Obligations (ARO)

	Carrying
	Amount
	of ARO
	(in millions)
ARO at December 31, 2009	$	1,259
DHLC Deconsolidation (a)		(12)
Accretion Expense		75
Liabilities Incurred		32
Liabilities Settled		(20)
Revisions in Cash Flow Estimates		64
ARO at December 31, 2010 (b)		1,398
Accretion Expense		82
Liabilities Incurred		7
Liabilities Settled		(26)
Revisions in Cash Flow Estimates		13
ARO at December 31, 2011 (c)	$	1,474

(a) We deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for "Consolidations." As a result, we record only 50% of the final reclamation based on our share of the obligation instead of the previous 100%.

(b) The current portion of our ARO, totaling $4 million, is included in Other Current Liabilities on our 2010 balance sheet.

(c) The current portion of our ARO, totaling $2 million, is included in Other Current Liabilities on our 2011 balance sheet.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

	Years Ended December 31,
	2011		2010		2009
	(in millions)
Allowance for Equity Funds Used During Construction	$	98	$	77	$	82
Allowance for Borrowed Funds Used During Construction		63		53		67

Jointly-owned Electric Facilities

				Company’s Share at December 31, 2011
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
	Type	Ownership		in Service		Progress		Depreciation
				(in millions)
W.C. Beckjord Generating Station (Unit No. 6) (a)	Coal	12.5	%	$	19	$	-	$	8
Conesville Generating Station (Unit No. 4) (b)	Coal	43.5	%		310		12		54
J.M. Stuart Generating Station (c)	Coal	26.0	%		529		13		172
Wm. H. Zimmer Generating Station (a)	Coal	25.4	%		771		20		377
Dolet Hills Generating Station (Unit No. 1) (f)	Lignite	40.2	%		264		-		193
Flint Creek Generating Station (Unit No. 1) (g)	Coal	50.0	%		118		6		63
Pirkey Generating Station (Unit No. 1) (g)	Lignite	85.9	%		513		1		362
Oklaunion Generating Station (Unit No. 1) (e)	Coal	70.3	%		401		2		208
Turk Generating Plant (h)	Coal	73.33	%		-		1,326		-
Transmission	NA	(d)			63		6		50

				Company’s Share at December 31, 2010
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
	Type	Ownership		in Service		Progress		Depreciation
				(in millions)
W.C. Beckjord Generating Station (Unit No. 6) (a)	Coal	12.5	%	$	19	$	-	$	8
Conesville Generating Station (Unit No. 4) (b)	Coal	43.5	%		301		8		49
J.M. Stuart Generating Station (c)	Coal	26.0	%		507		23		163
Wm. H. Zimmer Generating Station (a)	Coal	25.4	%		771		10		366
Dolet Hills Generating Station (Unit No. 1) (f)	Lignite	40.2	%		258		5		192
Flint Creek Generating Station (Unit No. 1) (g)	Coal	50.0	%		116		7		62
Pirkey Generating Station (Unit No. 1) (g)	Lignite	85.9	%		503		10		358
Oklaunion Generating Station (Unit No. 1) (e)	Coal	70.3	%		395		4		201
Turk Generating Plant (h)	Coal	73.33	%		-		971		-
Transmission	NA	(d)			63		3		48

(a) Operated by Duke Energy Corporation, a nonaffiliated company.

(b) Operated by OPCo.

(d) Varying percentages of ownership.

(e) Operated by PSO and also jointly-owned (54.7%) by TNC.

(f) Operated by CLECO, a nonaffiliated company.

(g) Operated by SWEPCo.

(h) Turk Generating Plant is currently under construction with a projected commercial operation date in the fourth quarter of 2012. SWEPCo jointly owns the plant with Arkansas Electric Cooperative Corporation (11.67%), East Texas Electric Cooperative (8.33%) and Oklahoma Municipal Power Authority (6.67%). Through December 2011, construction costs totaling $374 million have been billed to the other owners.

NA Not Applicable

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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- Definition

Tabular disclosure of proportionate interests in jointly owned utility plants. Includes the amount of plants in service, the accumulated provision for depreciation (if available), the amount of plants under construction, and the proportionate share. The amounts presented may be further subdivided to show amounts applicable to plant subcategories (for example, production, transmission, distribution). Includes statements that the amounts represent the utility's share in each joint plant and that it must provide its own financing. Information concerning two or more generating plants on the same site may be combined. States that the utility's share of direct expenses of the joint plants is included in the corresponding operating expenses on its income statement (for example, fuel, maintenance of plant, other operating expense). If the share of direct expenses is charged to purchased power, then disclose the amount so charged and the proportionate amounts charged to specific operating expenses on the records maintained for the joint plants.

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