XML 52 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2012
Book Values and Fair Values of Long-term Debt
   September 30, 2012 December 31, 2011
   Book Value Fair Value Book Value Fair Value
   (in millions)
 Long-term Debt $ 17,227 $ 20,457 $ 16,516 $ 19,259
Other Temporary Investments
     September 30, 2012 
       Gross Gross Estimated 
        Unrealized Unrealized  Fair
 Other Temporary Investments Cost Gains Losses Value
     (in millions) 
 Restricted Cash (a) $ 197 $ - $ - $ 197 
 Fixed Income Securities:             
  Mutual Funds   64   1   -   65 
 Equity Securities - Mutual Funds   11   5   -   16 
 Total Other Temporary Investments $ 272 $ 6 $ - $ 278 
                 
     December 31, 2011 
       Gross Gross Estimated 
        Unrealized Unrealized  Fair 
 Other Temporary Investments Cost Gains Losses Value 
     (in millions) 
 Restricted Cash (a) $ 216 $ - $ - $ 216 
 Fixed Income Securities:             
  Mutual Funds   64   -   -   64 
 Equity Securities - Mutual Funds   11   3   -   14 
 Total Other Temporary Investments $ 291 $ 3 $ - $ 294 
                 
 (a)Primarily represents amounts held for the repayment of debt.
Debt and Equity Securities Within Other Temporary Investments
  Three Months Ended September 30, Nine Months Ended September 30,
  2012 2011 2012 2011
  (in millions)
 Proceeds from Investment Sales$ - $ 21 $ - $ 268
 Purchases of Investments  -   -   1   153
 Gross Realized Gains on Investment Sales  -   4   -   4
 Gross Realized Losses on Investment Sales  -   -   -   -
Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
 Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
 Three Months Ended September 30, 2012
       
     (in millions)
 Balance in AOCI as of June 30, 2012 $ 3
 Changes in Fair Value Recognized in AOCI   1
 Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:   
   Interest Income   -
 Balance in AOCI as of September 30, 2012 $ 4

 Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
 Nine Months Ended September 30, 2012
       
     (in millions)
 Balance in AOCI as of December 31, 2011 $ 2
 Changes in Fair Value Recognized in AOCI   2
 Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:   
   Interest Income   -
 Balance in AOCI as of September 30, 2012 $ 4
Nuclear Trust Fund Investments
    September 30, 2012 December 31, 2011
    Estimated Gross Other-Than-  Estimated Gross Other-Than-
   FairUnrealizedTemporaryFairUnrealizedTemporary
   ValueGainsImpairmentsValueGainsImpairments
    (in millions)
 Cash and Cash Equivalents $ 13 $ - $ - $ 18 $ - $ -
 Fixed Income Securities:                  
  United States Government   693   108   (1)   544   61   (1)
  Corporate Debt   36   6   (1)   54   5   (2)
  State and Local Government   226   1   (1)   330   -   (2)
   Subtotal Fixed Income Securities  955   115   (3)   928   66   (5)
 Equity Securities - Domestic   732   291   (78)   646   215   (80)
 Spent Nuclear Fuel and                  
  Decommissioning Trusts $ 1,700 $ 406 $ (81) $ 1,592 $ 281 $ (85)
Securities Activity Within the Decommissioning and SNF Trusts
  Three Months Ended September 30, Nine Months Ended September 30,
  2012 2011 2012 2011
  (in millions)
 Proceeds from Investment Sales$ 182 $ 361 $ 699 $ 826
 Purchases of Investments  199   379   744   871
 Gross Realized Gains on Investment Sales  2   18   7   30
 Gross Realized Losses on Investment Sales  1   12   3   21
Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts
  Fair Value of 
  Fixed Income 
  Securities 
  (in millions) 
 Within 1 year$ 136 
 1 year – 5 years  357 
 5 years – 10 years  265 
 After 10 years  197 
 Total$ 955 
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
September 30, 2012
            
   Level 1 Level 2 Level 3 Other Total
Assets:(in millions)
                 
Cash and Cash Equivalents (a) (e)$ 20 $ 1 $ - $ 422 $ 443
                 
Other Temporary Investments              
Restricted Cash (a) (e)  183   5   -   9   197
Fixed Income Securities:              
 Mutual Funds  65   -   -   -   65
Equity Securities - Mutual Funds (b)  16   -   -   -   16
Total Other Temporary Investments  264   5   -   9   278
                 
Risk Management Assets              
Risk Management Commodity Contracts (c) (f)  47   1,076   166   (778)   511
Cash Flow Hedges:              
 Commodity Hedges (c)  9   37   2   (15)   33
Fair Value Hedges  -   2   -   -   2
De-designated Risk Management Contracts (d)  -   -   -   19   19
Total Risk Management Assets   56   1,115   168   (774)   565
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (e)  -   5   -   8   13
Fixed Income Securities:              
 United States Government  -   693   -   -   693
 Corporate Debt  -   36   -   -   36
 State and Local Government  -   226   -   -   226
  Subtotal Fixed Income Securities  -   955   -   -   955
Equity Securities - Domestic (b)  732   -   -   -   732
Total Spent Nuclear Fuel and Decommissioning Trusts  732   960   -   8   1,700
                 
Total Assets$ 1,072 $ 2,081 $ 168 $ (335) $ 2,986
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (c) (f)$ 42 $ 994 $ 64 $ (797) $ 303
Cash Flow Hedges:              
 Commodity Hedges (c)  -   47   -   (15)   32
 Interest Rate/Foreign Currency Hedges  -   39   -   -   39
Total Risk Management Liabilities $ 42 $ 1,080 $ 64 $ (812) $ 374

Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2011
            
   Level 1 Level 2 Level 3 Other Total
Assets:(in millions)
                 
Cash and Cash Equivalents (a)$ 6 $ - $ - $ 215 $ 221
                 
Other Temporary Investments              
Restricted Cash (a)  191   -   -   25   216
Fixed Income Securities:              
 Mutual Funds  64   -   -   -   64
Equity Securities - Mutual Funds (b)  14   -   -   -   14
Total Other Temporary Investments  269   -   -   25   294
                 
Risk Management Assets              
Risk Management Commodity Contracts (c) (g)  47   1,299   147   (945)   548
Cash Flow Hedges:              
 Commodity Hedges (c)  15   23   -   (18)   20
De-designated Risk Management Contracts (d)  -   -   -   28   28
Total Risk Management Assets   62   1,322   147   (935)   596
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (e)  -   5   -   13   18
Fixed Income Securities:              
 United States Government  -   544   -   -   544
 Corporate Debt  -   54   -   -   54
 State and Local Government  -   330   -   -   330
  Subtotal Fixed Income Securities  -   928   -   -   928
Equity Securities - Domestic (b)  646   -   -   -   646
Total Spent Nuclear Fuel and Decommissioning Trusts  646   933   -   13   1,592
                 
Total Assets$ 983 $ 2,255 $ 147 $ (682) $ 2,703
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (c) (g)$ 43 $ 1,209 $ 78 $ (1,052) $ 278
Cash Flow Hedges:              
 Commodity Hedges (c)  -   43   -   (18)   25
 Interest Rate/Foreign Currency Hedges  -   42   -   -   42
Total Risk Management Liabilities $ 43 $ 1,294 $ 78 $ (1,070) $ 345

(a)       Amounts in ''Other'' column primarily represent cash deposits in bank accounts with financial institutions or with third parties. Level 1 amounts primarily represent investments in money market funds.

(b)       Amounts represent publicly traded equity securities and equity-based mutual funds.

(c)       Amounts in ''Other'' column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for ''Derivatives and Hedging.''

(d)       Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for ''Derivatives and Hedging.'' At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.

(e)       Amounts in ''Other'' column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.

(f)       The September 30, 2012 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $12 million in periods 2013-2015 and ($7) million in periods 2016-2018; Level 2 matures $59 million in periods 2013-2015, $14 million in periods 2016-2017 and $9 million in periods 2018-2030; Level 3 matures $7 million in 2012, $35 million in periods 2013-2015, $31 million in periods 2016-2017 and $29 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.

(g)       The December 31, 2011 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $3 million in 2012, $7 million in periods 2013-2015 and ($6) million in periods 2016-2018; Level 2 matures $21 million in 2012, $50 million in periods 2013-2015, $11 million in periods 2016-2017 and $8 million in periods 2018-2030; Level 3 matures ($19) million in 2012, $44 million in periods 2013-2015, $18 million in periods 2016-2017 and $26 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.

Changes in Fair Value of Net Trading Derivatives and Other Investments
    Net Risk Management
 Three Months Ended September 30, 2012 Assets (Liabilities)
    (in millions)
 Balance as of June 30, 2012 $ 97
 Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)   (5)
 Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)   
  Relating to Assets Still Held at the Reporting Date (a)   7
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   5
 Purchases, Issuances and Settlements (c)   4
 Transfers into Level 3 (d) (f)   (3)
 Transfers out of Level 3 (e) (f)   (1)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   -
 Balance as of September 30, 2012 $ 104

    Net Risk Management
 Three Months Ended September 30, 2011 Assets (Liabilities)
    (in millions)
 Balance as of June 30, 2011 $ 77
 Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)   (16)
 Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)   
  Relating to Assets Still Held at the Reporting Date (a)   (5)
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   -
 Purchases, Issuances and Settlements (c)   3
 Transfers into Level 3 (d) (f)   5
 Transfers out of Level 3 (e) (f)   (1)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   1
 Balance as of September 30, 2011 $ 64

    Net Risk Management
 Nine Months Ended September 30, 2012 Assets (Liabilities)
    (in millions)
 Balance as of December 31, 2011 $ 69
 Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)   (16)
 Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)   
  Relating to Assets Still Held at the Reporting Date (a)   20
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   2
 Purchases, Issuances and Settlements (c)   33
 Transfers into Level 3 (d) (f)   10
 Transfers out of Level 3 (e) (f)   (21)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   7
 Balance as of September 30, 2012 $ 104

    Net Risk Management
 Nine Months Ended September 30, 2011 Assets (Liabilities)
    (in millions)
 Balance as of December 31, 2010 $ 85
 Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)   (11)
 Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)   
  Relating to Assets Still Held at the Reporting Date (a)   -
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   -
 Purchases, Issuances and Settlements (c)   5
 Transfers into Level 3 (d) (f)   9
 Transfers out of Level 3 (e) (f)   (12)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   (12)
 Balance as of September 30, 2011 $ 64

       (a)       Included in revenues on our condensed statements of income.

       (b)       Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

       (c)       Represents the settlement of risk management commodity contracts for the reporting period.

       (d)       Represents existing assets or liabilities that were previously categorized as Level 2.

       (e)       Represents existing assets or liabilities that were previously categorized as Level 3.

       (f)       Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

       (g)       Relates to the net gains (losses) of those contracts that are not reflected on our condensed statements of income. These net gains (losses) are recorded as regulatory liabilities/assets.

Significant Unobservable Inputs for Level 3
  Fair Value Valuation Significant Input/Range
 Assets LiabilitiesTechniqueUnobservable Input Low High
  (in millions)          
Energy Contracts $ 160 $ 57 Discounted Cash Flow Forward Market Price (a) $ 10.45 $ 117.64
          Counterparty Credit Risk (b)  457
FTRs   8   7 Discounted Cash Flow Forward Market Price (a)   (7.71)   9.92
Total $ 168 $ 64          

  • Represents market prices in dollars per MWh.
  • Represents average price of credit default swaps used to calculate counterparty credit risk, reported in basis points.
Appalachian Power Co [Member]
 
Book Values and Fair Values of Long-term Debt
   September 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
   (in thousands)
 APCo $ 3,702,283 $ 4,597,740 $ 3,726,251 $ 4,431,912
 I&M   2,109,630   2,431,912   2,057,675   2,339,344
 OPCo   3,860,242   4,589,998   4,054,148   4,665,739
 PSO   949,884   1,187,155   947,364   1,123,306
 SWEPCo   2,046,139   2,424,311   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
September 30, 2012
APCo         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 4,301 $ 219,033 $ 23,357 $ (178,608) $ 68,083
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,306   289   (670)   925
De-designated Risk Management Contracts (b)  -   -   -   590   590
Total Risk Management Assets $ 4,301 $ 220,339 $ 23,646 $ (178,688) $ 69,598
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 1,931 $ 209,732 $ 12,606 $ (186,641) $ 37,628
Cash Flow Hedges:              
 Commodity Hedges (a)  -   2,173   -   (670)   1,503
Total Risk Management Liabilities $ 1,931 $ 211,905 $ 12,606 $ (187,311) $ 39,131

Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2011
APCo         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 4,680 $ 302,128 $ 25,423 $ (255,324) $ 76,907
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,095   -   (664)   431
De-designated Risk Management Contracts (b)  -   -   -   1,533   1,533
Total Risk Management Assets $ 4,680 $ 303,223 $ 25,423 $ (254,455) $ 78,871
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 2,535 $ 291,194 $ 23,379 $ (279,997) $ 37,111
Cash Flow Hedges:              
 Commodity Hedges (a)  -   3,009   73   (664)   2,418
Total Risk Management Liabilities $ 2,535 $ 294,203 $ 23,452 $ (280,661) $ 39,529

(a)       Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”

(b)       Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(d)       Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.

(e)       Amounts represent publicly traded equity securities and equity-based mutual funds.

(f)       Substantially comprised of power contracts for APCo, I&M and OPCo and coal contracts for PSO and SWEPCo.

Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,540)   (2,440)   (5,024)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (1,030)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   403   277   571   -   -
Purchases, Issuances and Settlements (c)   929   635   1,299   -   -
Transfers into Level 3 (d) (f)   654   460   964   -   -
Transfers out of Level 3 (e) (f)   (287)   (202)   (423)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   17   (193)   253   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Three Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (4,553)   (2,904)   (6,138)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (939)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (7)   (7)   (13)   -   -
Purchases, Issuances and Settlements (c)   358   297   599   -   -
Transfers into Level 3 (d) (f)   -   -   -   -   -
Transfers out of Level 3 (e) (f)   (259)   (154)   (330)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (91)   112   1,103   -   -
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

Nine Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,108)   (3,488)   (7,316)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,973   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   312   211   435   -   -
Purchases, Issuances and Settlements (c)   10,605   7,325   15,375   -   -
Transfers into Level 3 (d) (f)   4,142   2,749   5,789   -   -
Transfers out of Level 3 (e) (f)   (4,910)   (3,193)   (6,733)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   4,028   2,719   390   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Nine Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,373)   (1,401)   (3,007)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,947   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (45)   (29)   (61)   -   -
Purchases, Issuances and Settlements (c)   2,835   1,656   3,567   -   -
Transfers into Level 3 (d) (f)   1,299   764   1,638   -   -
Transfers out of Level 3 (e) (f)   (3,057)   (1,834)   (3,908)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (3,021)   (1,770)   (5,718)   (1)   (2)
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

(a)       Included in revenues on the condensed statements of income.

(b)       Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

(c)       Represents the settlement of risk management commodity contracts for the reporting period.

(d)       Represents existing assets or liabilities that were previously categorized as Level 2.

(e)       Represents existing assets or liabilities that were previously categorized as Level 3.

(f)       Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

(g)       Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory assets/liabilities.

Significant Unobservable Inputs for Level 3
 APCo Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in thousands)          
 Energy Contracts $ 21,300 $ 10,451 Discounted Cash Flow Forward Market Price $ 10.45 $ 63.25
 FTRs   2,346   2,155 Discounted Cash Flow Forward Market Price   (3.81)   9.92
 Total $ 23,646 $ 12,606          

(a)       Represents market prices in dollars per MWh.

Indiana Michigan Power Co [Member]
 
Book Values and Fair Values of Long-term Debt
   September 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
   (in thousands)
 APCo $ 3,702,283 $ 4,597,740 $ 3,726,251 $ 4,431,912
 I&M   2,109,630   2,431,912   2,057,675   2,339,344
 OPCo   3,860,242   4,589,998   4,054,148   4,665,739
 PSO   949,884   1,187,155   947,364   1,123,306
 SWEPCo   2,046,139   2,424,311   1,728,637   2,019,094
Nuclear Trust Fund Investments
    September 30, 2012 December 31, 2011
    Estimated Gross Other-Than-  Estimated Gross Other-Than-
   FairUnrealizedTemporaryFairUnrealizedTemporary
   ValueGainsImpairmentsValueGainsImpairments
    (in thousands)
 Cash and Cash Equivalents $ 12,945 $ - $ - $ 18,229 $ - $ -
 Fixed Income Securities:                  
  United States Government   693,127   107,721   (612)   543,506   60,946   (547)
  Corporate Debt   35,798   5,531   (1,435)   53,979   4,932   (1,536)
  State and Local Government   226,142   1,301   (660)   329,986   (430)   (2,236)
   Subtotal Fixed Income Securities  955,067   114,553   (2,707)   927,471   65,448   (4,319)
 Equity Securities - Domestic   731,679   291,224   (77,662)   646,032   214,748   (79,536)
 Spent Nuclear Fuel and                  
  Decommissioning Trusts $ 1,699,691 $ 405,777 $ (80,369) $ 1,591,732 $ 280,196 $ (83,855)
Securities Activity Within the Decommissioning and SNF Trusts
  Three Months Ended September 30, Nine Months Ended September 30,
  2012 2011 2012 2011
  (in thousands)
 Proceeds from Investment Sales$ 181,988 $ 361,001 $ 698,567 $ 825,689
 Purchases of Investments  199,150   378,607   744,131   870,769
 Gross Realized Gains on Investment Sales  2,046   17,256   6,978   29,661
 Gross Realized Losses on Investment Sales  924   11,313   3,143   20,603
Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts
  Fair Value of 
  Fixed Income 
  Securities 
     
  (in thousands) 
 Within 1 year$ 136,610 
 1 year – 5 years  356,630 
 5 years – 10 years  265,125 
 After 10 years  196,702 
 Total$ 955,067 
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
September 30, 2012
I&M         
   Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                 
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 2,955 $ 154,581 $ 16,051 $ (119,809) $ 53,778
Cash Flow Hedges:              
 Commodity Hedges (a)  -   880   198   (456)   622
De-designated Risk Management Contracts (b)  -   -   -   406   406
Total Risk Management Assets   2,955   155,461   16,249   (119,859)   54,806
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (d)  -   4,995   -   7,950   12,945
Fixed Income Securities:              
 United States Government  -   693,127   -   -   693,127
 Corporate Debt  -   35,798   -   -   35,798
 State and Local Government  -   226,142   -   -   226,142
  Subtotal Fixed Income Securities  -   955,067   -   -   955,067
Equity Securities - Domestic (e)  731,679   -   -   -   731,679
Total Spent Nuclear Fuel and Decommissioning Trusts  731,679   960,062   -   7,950   1,699,691
                 
Total Assets$ 734,634 $ 1,115,523 $ 16,249 $ (111,909) $ 1,754,497
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 1,327 $ 141,858 $ 8,663 $ (125,328) $ 26,520
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,488   -   (456)   1,032
 Interest Rate/Foreign Currency Hedges  -   20,465   -   -   20,465
Total Risk Management Liabilities $ 1,327 $ 163,811 $ 8,663 $ (125,784) $ 48,017

  Assets and Liabilities Measured at Fair Value on a Recurring Basis
  December 31, 2011
I&M         
   Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                 
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 3,001 $ 203,175 $ 16,305 $ (162,227) $ 60,254
Cash Flow Hedges:              
 Commodity Hedges (a)  -   702   -   (425)   277
De-designated Risk Management Contracts (b)  -   -   -   983   983
Total Risk Management Assets   3,001   203,877   16,305   (161,669)   61,514
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (d)  -   5,431   -   12,798   18,229
Fixed Income Securities:              
 United States Government  -   543,506   -   -   543,506
 Corporate Debt  -   53,979   -   -   53,979
 State and Local Government  -   329,986   -   -   329,986
  Subtotal Fixed Income Securities  -   927,471   -   -   927,471
Equity Securities - Domestic (e)  646,032   -   -   -   646,032
Total Spent Nuclear Fuel and Decommissioning Trusts  646,032   932,902   -   12,798   1,591,732
                 
Total Assets$ 649,033 $ 1,136,779 $ 16,305 $ (148,871) $ 1,653,246
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 1,626 $ 185,092 $ 14,995 $ (178,022) $ 23,691
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,901   47   (425)   1,523
 Interest Rate/Foreign Currency Hedges  -   10,637   -   -   10,637
Total Risk Management Liabilities $ 1,626 $ 197,630 $ 15,042 $ (178,447) $ 35,851

(a)       Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”

(b)       Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(d)       Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.

(e)       Amounts represent publicly traded equity securities and equity-based mutual funds.

(f)       Substantially comprised of power contracts for APCo, I&M and OPCo and coal contracts for PSO and SWEPCo.

Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,540)   (2,440)   (5,024)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (1,030)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   403   277   571   -   -
Purchases, Issuances and Settlements (c)   929   635   1,299   -   -
Transfers into Level 3 (d) (f)   654   460   964   -   -
Transfers out of Level 3 (e) (f)   (287)   (202)   (423)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   17   (193)   253   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Three Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (4,553)   (2,904)   (6,138)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (939)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (7)   (7)   (13)   -   -
Purchases, Issuances and Settlements (c)   358   297   599   -   -
Transfers into Level 3 (d) (f)   -   -   -   -   -
Transfers out of Level 3 (e) (f)   (259)   (154)   (330)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (91)   112   1,103   -   -
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

Nine Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,108)   (3,488)   (7,316)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,973   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   312   211   435   -   -
Purchases, Issuances and Settlements (c)   10,605   7,325   15,375   -   -
Transfers into Level 3 (d) (f)   4,142   2,749   5,789   -   -
Transfers out of Level 3 (e) (f)   (4,910)   (3,193)   (6,733)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   4,028   2,719   390   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Nine Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,373)   (1,401)   (3,007)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,947   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (45)   (29)   (61)   -   -
Purchases, Issuances and Settlements (c)   2,835   1,656   3,567   -   -
Transfers into Level 3 (d) (f)   1,299   764   1,638   -   -
Transfers out of Level 3 (e) (f)   (3,057)   (1,834)   (3,908)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (3,021)   (1,770)   (5,718)   (1)   (2)
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

(a)       Included in revenues on the condensed statements of income.

(b)       Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

(c)       Represents the settlement of risk management commodity contracts for the reporting period.

(d)       Represents existing assets or liabilities that were previously categorized as Level 2.

(e)       Represents existing assets or liabilities that were previously categorized as Level 3.

(f)       Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

(g)       Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory assets/liabilities.

Significant Unobservable Inputs for Level 3
 I&M Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in thousands)          
 Energy Contracts $ 14,637 $ 7,182 Discounted Cash Flow Forward Market Price $ 10.45 $ 63.25
 FTRs   1,612   1,481 Discounted Cash Flow Forward Market Price   (3.81)   9.92
 Total $ 16,249 $ 8,663          

(a)       Represents market prices in dollars per MWh.

Ohio Power Co [Member]
 
Book Values and Fair Values of Long-term Debt
   September 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
   (in thousands)
 APCo $ 3,702,283 $ 4,597,740 $ 3,726,251 $ 4,431,912
 I&M   2,109,630   2,431,912   2,057,675   2,339,344
 OPCo   3,860,242   4,589,998   4,054,148   4,665,739
 PSO   949,884   1,187,155   947,364   1,123,306
 SWEPCo   2,046,139   2,424,311   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 September 30, 2012
OPCo              
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Other Cash Deposits (c)$ - $ 26 $ - $ 39 $ 65
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)  6,069   318,501   32,962   (260,623)   96,909
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,824   407   (942)   1,289
De-designated Risk Management Contracts (b)  -   -   -   833   833
Total Risk Management Assets   6,069   320,325   33,369   (260,732)   99,031
                
Total Assets$ 6,069 $ 320,351 $ 33,369 $ (260,693) $ 99,096
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 2,726 $ 305,493 $ 17,790 $ (271,958) $ 54,051
Cash Flow Hedges:              
 Commodity Hedges (a)  -   3,062   -   (942)   2,120
Total Risk Management Liabilities $ 2,726 $ 308,555 $ 17,790 $ (272,900) $ 56,171

 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 December 31, 2011
OPCo         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Other Cash Deposits (c)$ 26 $ - $ - $ 22 $ 48
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)  6,339   421,249   34,425   (356,766)   105,247
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,483   -   (899)   584
De-designated Risk Management Contracts (b)  -   -   -   2,076   2,076
Total Risk Management Assets   6,339   422,732   34,425   (355,589)   107,907
                
Total Assets$ 6,365 $ 422,732 $ 34,425 $ (355,567) $ 107,955
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 3,433 $ 406,259 $ 31,659 $ (390,139) $ 51,212
Cash Flow Hedges:              
 Commodity Hedges (a)  -   4,038   100   (899)   3,239
Total Risk Management Liabilities $ 3,433 $ 410,297 $ 31,759 $ (391,038) $ 54,451

(a)       Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”

(b)       Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(d)       Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.

(e)       Amounts represent publicly traded equity securities and equity-based mutual funds.

(f)       Substantially comprised of power contracts for APCo, I&M and OPCo and coal contracts for PSO and SWEPCo.

Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,540)   (2,440)   (5,024)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (1,030)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   403   277   571   -   -
Purchases, Issuances and Settlements (c)   929   635   1,299   -   -
Transfers into Level 3 (d) (f)   654   460   964   -   -
Transfers out of Level 3 (e) (f)   (287)   (202)   (423)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   17   (193)   253   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Three Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (4,553)   (2,904)   (6,138)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (939)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (7)   (7)   (13)   -   -
Purchases, Issuances and Settlements (c)   358   297   599   -   -
Transfers into Level 3 (d) (f)   -   -   -   -   -
Transfers out of Level 3 (e) (f)   (259)   (154)   (330)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (91)   112   1,103   -   -
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

Nine Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,108)   (3,488)   (7,316)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,973   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   312   211   435   -   -
Purchases, Issuances and Settlements (c)   10,605   7,325   15,375   -   -
Transfers into Level 3 (d) (f)   4,142   2,749   5,789   -   -
Transfers out of Level 3 (e) (f)   (4,910)   (3,193)   (6,733)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   4,028   2,719   390   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Nine Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,373)   (1,401)   (3,007)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,947   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (45)   (29)   (61)   -   -
Purchases, Issuances and Settlements (c)   2,835   1,656   3,567   -   -
Transfers into Level 3 (d) (f)   1,299   764   1,638   -   -
Transfers out of Level 3 (e) (f)   (3,057)   (1,834)   (3,908)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (3,021)   (1,770)   (5,718)   (1)   (2)
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

(a)       Included in revenues on the condensed statements of income.

(b)       Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

(c)       Represents the settlement of risk management commodity contracts for the reporting period.

(d)       Represents existing assets or liabilities that were previously categorized as Level 2.

(e)       Represents existing assets or liabilities that were previously categorized as Level 3.

(f)       Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

(g)       Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory assets/liabilities.

Significant Unobservable Inputs for Level 3
 OPCo Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in thousands)          
 Energy Contracts $ 30,058 $ 14,748 Discounted Cash Flow Forward Market Price $ 10.45 $ 63.25
 FTRs   3,311   3,042 Discounted Cash Flow Forward Market Price   (3.81)   9.92
 Total $ 33,369 $ 17,790          

(a)       Represents market prices in dollars per MWh.

Public Service Co Of Oklahoma [Member]
 
Book Values and Fair Values of Long-term Debt
   September 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
   (in thousands)
 APCo $ 3,702,283 $ 4,597,740 $ 3,726,251 $ 4,431,912
 I&M   2,109,630   2,431,912   2,057,675   2,339,344
 OPCo   3,860,242   4,589,998   4,054,148   4,665,739
 PSO   949,884   1,187,155   947,364   1,123,306
 SWEPCo   2,046,139   2,424,311   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 September 30, 2012
PSO         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 8 $ 5,126 $ - $ (4,511) $ 623
Cash Flow Hedges:              
 Commodity Hedges (a)  -   58   -   (12)   46
Total Risk Management Assets $ 8 $ 5,184 $ - $ (4,523) $ 669
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 6 $ 10,625 $ - $ (4,515) $ 6,116
Cash Flow Hedges:              
 Commodity Hedges (a)  -   18   -   (12)   6
Total Risk Management Liabilities $ 6 $ 10,643 $ - $ (4,527) $ 6,122

 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 December 31, 2011
PSO         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 97 $ 7,797 $ - $ (7,015) $ 879
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 53 $ 9,542 $ - $ (7,092) $ 2,503
Cash Flow Hedges:              
 Commodity Hedges  -   107   -   -   107
Total Risk Management Liabilities$ 53 $ 9,649 $ - $ (7,092) $ 2,610

(a)       Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”

(b)       Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(d)       Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.

(e)       Amounts represent publicly traded equity securities and equity-based mutual funds.

(f)       Substantially comprised of power contracts for APCo, I&M and OPCo and coal contracts for PSO and SWEPCo.

Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,540)   (2,440)   (5,024)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (1,030)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   403   277   571   -   -
Purchases, Issuances and Settlements (c)   929   635   1,299   -   -
Transfers into Level 3 (d) (f)   654   460   964   -   -
Transfers out of Level 3 (e) (f)   (287)   (202)   (423)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   17   (193)   253   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Three Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (4,553)   (2,904)   (6,138)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (939)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (7)   (7)   (13)   -   -
Purchases, Issuances and Settlements (c)   358   297   599   -   -
Transfers into Level 3 (d) (f)   -   -   -   -   -
Transfers out of Level 3 (e) (f)   (259)   (154)   (330)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (91)   112   1,103   -   -
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

Nine Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,108)   (3,488)   (7,316)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,973   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   312   211   435   -   -
Purchases, Issuances and Settlements (c)   10,605   7,325   15,375   -   -
Transfers into Level 3 (d) (f)   4,142   2,749   5,789   -   -
Transfers out of Level 3 (e) (f)   (4,910)   (3,193)   (6,733)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   4,028   2,719   390   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Nine Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,373)   (1,401)   (3,007)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,947   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (45)   (29)   (61)   -   -
Purchases, Issuances and Settlements (c)   2,835   1,656   3,567   -   -
Transfers into Level 3 (d) (f)   1,299   764   1,638   -   -
Transfers out of Level 3 (e) (f)   (3,057)   (1,834)   (3,908)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (3,021)   (1,770)   (5,718)   (1)   (2)
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

(a)       Included in revenues on the condensed statements of income.

(b)       Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

(c)       Represents the settlement of risk management commodity contracts for the reporting period.

(d)       Represents existing assets or liabilities that were previously categorized as Level 2.

(e)       Represents existing assets or liabilities that were previously categorized as Level 3.

(f)       Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

(g)       Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory assets/liabilities.

Southwestern Electric Power Co [Member]
 
Book Values and Fair Values of Long-term Debt
   September 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
   (in thousands)
 APCo $ 3,702,283 $ 4,597,740 $ 3,726,251 $ 4,431,912
 I&M   2,109,630   2,431,912   2,057,675   2,339,344
 OPCo   3,860,242   4,589,998   4,054,148   4,665,739
 PSO   949,884   1,187,155   947,364   1,123,306
 SWEPCo   2,046,139   2,424,311   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
September 30, 2012
SWEPCo         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Cash and Cash Equivalents (c)$ 14,108 $ - $ - $ 2,518 $ 16,626
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)  9   8,303   -   (7,472)   840
Cash Flow Hedges:              
 Commodity Hedges (a)  -   55   -   (12)   43
Total Risk Management Assets   9   8,358   -   (7,484)   883
                
Total Assets $ 14,117 $ 8,358 $ - $ (4,966) $ 17,509
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 7 $ 11,744 $ - $ (7,475) $ 4,276
Cash Flow Hedges:              
 Commodity Hedges (a)  -   18   -   (12)   6
Total Risk Management Liabilities $ 7 $ 11,762 $ - $ (7,487) $ 4,282

 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 December 31, 2011
SWEPCo         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 122 $ 7,023 $ - $ (6,421) $ 724
Cash Flow Hedges:              
 Interest Rate/Foreign Currency Hedges  -   3   -   -   3
Total Risk Management Assets $ 122 $ 7,026 $ - $ (6,421) $ 727
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 66 $ 11,753 $ - $ (6,479) $ 5,340
Cash Flow Hedges:              
 Commodity Hedges  -   97   -   -   97
 Interest Rate/Foreign Currency Hedges  -   19,143   -   -   19,143
Total Risk Management Liabilities$ 66 $ 30,993 $ - $ (6,479) $ 24,580

(a)       Amounts in “Other” column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for “Derivatives and Hedging.”

(b)       Represents contracts that were originally MTM but were subsequently elected as normal under the accounting guidance for “Derivatives and Hedging.” At the time of the normal election, the MTM value was frozen and no longer fair valued. This MTM value will be amortized into revenues over the remaining life of the contracts.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(d)       Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 2 amounts primarily represent investments in money market funds.

(e)       Amounts represent publicly traded equity securities and equity-based mutual funds.

(f)       Substantially comprised of power contracts for APCo, I&M and OPCo and coal contracts for PSO and SWEPCo.

Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,540)   (2,440)   (5,024)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (1,030)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   403   277   571   -   -
Purchases, Issuances and Settlements (c)   929   635   1,299   -   -
Transfers into Level 3 (d) (f)   654   460   964   -   -
Transfers out of Level 3 (e) (f)   (287)   (202)   (423)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   17   (193)   253   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Three Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (4,553)   (2,904)   (6,138)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   (939)   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (7)   (7)   (13)   -   -
Purchases, Issuances and Settlements (c)   358   297   599   -   -
Transfers into Level 3 (d) (f)   -   -   -   -   -
Transfers out of Level 3 (e) (f)   (259)   (154)   (330)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (91)   112   1,103   -   -
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

Nine Months Ended September 30, 2012 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,108)   (3,488)   (7,316)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,973   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   312   211   435   -   -
Purchases, Issuances and Settlements (c)   10,605   7,325   15,375   -   -
Transfers into Level 3 (d) (f)   4,142   2,749   5,789   -   -
Transfers out of Level 3 (e) (f)   (4,910)   (3,193)   (6,733)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   4,028   2,719   390   -   -
Balance as of September 30, 2012 $ 11,040 $ 7,586 $ 15,579 $ - $ -

Nine Months Ended September 30, 2011 APCo I&M OPCo PSO SWEPCo
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,373)   (1,401)   (3,007)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,947   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (45)   (29)   (61)   -   -
Purchases, Issuances and Settlements (c)   2,835   1,656   3,567   -   -
Transfers into Level 3 (d) (f)   1,299   764   1,638   -   -
Transfers out of Level 3 (e) (f)   (3,057)   (1,834)   (3,908)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (3,021)   (1,770)   (5,718)   (1)   (2)
Balance as of September 30, 2011 $ 769 $ 494 $ 1,041 $ - $ -

(a)       Included in revenues on the condensed statements of income.

(b)       Represents the change in fair value between the beginning of the reporting period and the settlement of the risk management commodity contract.

(c)       Represents the settlement of risk management commodity contracts for the reporting period.

(d)       Represents existing assets or liabilities that were previously categorized as Level 2.

(e)       Represents existing assets or liabilities that were previously categorized as Level 3.

(f)       Transfers are recognized based on their value at the beginning of the reporting period that the transfer occurred.

(g)       Relates to the net gains (losses) of those contracts that are not reflected on the condensed statements of income. These net gains (losses) are recorded as regulatory assets/liabilities.