Property, Plant and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant And Equipment

17. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

We provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide the annual property information:

2013	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	$	17,873	$	7,168	1.7	-	3.7	%	31	-	132	$	7,201	$	2,969		2.6	-	3.3	%	35	-	66
Transmission		10,854		2,805	1.1	-	2.7	%	25	-	87		39		16		2.5		%		43	-	55
Distribution		16,377		3,988	2.3	-	3.8	%	11	-	75		-		-		NA				NA
CWIP		2,326		(121)	NM				NM				145		1		NM				NM
Other		4,116		1,931	2.0	-	7.9	%	5	-	75		1,354		531		NM				NM
Total	$	51,546	$	15,771								$	8,739	$	3,517

2012	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	$	16,973	$	6,962	1.7	-	3.8	%	31	-	132	$	9,306	$	3,526		2.6	-	3.3	%	35	-	66
Transmission		9,846		2,720	1.2	-	2.8	%	25	-	87		-		-		NA				NA
Distribution		15,565		3,837	2.4	-	3.9	%	11	-	75		-		-		NA				NA
CWIP		1,600		(27)	NM				NM				219		1		NM				NM
Other		2,644		1,238	1.8	-	9.6	%	5	-	75		1,301		434		NM				NM
Total	$	46,628	$	14,730								$	10,826	$	3,961

2011		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		2.6	-	3.5	%	20	-	66
Transmission			1.3	-	2.7	%	25	-	87		NA				NA
Distribution			2.4	-	4.0	%	11	-	75		NA				NA
CWIP			NM				NM				NM				NM
Other			1.7	-	9.3	%	5	-	55		NM				NM
NA	Not applicable.
NM	Not meaningful.

We provide for depreciation, depletion and amortization of coal-mining assets over each asset's estimated useful life or the estimated life of each mine, whichever is shorter, using the straight-line method for mining structures and equipment. We use either the straight-line method or the units-of-production method to amortize mine development costs and deplete coal rights based on estimated recoverable tonnages. We include these costs in the cost of coal charged to fuel expense.

For regulated operations, the composite depreciation rate generally includes a component for non-asset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

We record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for our legal obligations for asbestos removal and for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant, wind farms and certain coal mining facilities, as well as for nuclear decommissioning of our Cook Plant. We have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which we have assets. Generally, such easements are perpetual and require only the retirement and removal of our assets upon the cessation of the property's use. We do not estimate the retirement for such easements because we plan to use our facilities indefinitely. The retirement obligation would only be recognized if and when we abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2013 and 2012 aggregate carrying amounts of ARO:

	Carrying
	Amount
	of ARO
	(in millions)
ARO as of December 31, 2011 (a)	$	1,474
Accretion Expense		85
Liabilities Incurred		17
Liabilities Settled		(24)
Revisions in Cash Flow Estimates		144
ARO as of December 31, 2012		1,696
Accretion Expense		103
Liabilities Incurred		4
Liabilities Settled		(22)
Revisions in Cash Flow Estimates		54
ARO as of December 31, 2013	$	1,835

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

As of December 31, 2013 and 2012, our ARO liability included $1.2 billion and $1.2 billion, respectively, for nuclear decommissioning of the Cook Plant. As of December 31, 2013 and 2012, the fair value of assets that are legally restricted for purposes of settling the nuclear decommissioning liabilities totaled $1.6 billion and $1.4 billion, respectively, and are recorded in Spent Nuclear Fuel and Decommissioning Trusts on thebalance sheets.

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

Our amounts of allowance for borrowed, including interest capitalized, and equity funds used during construction is summarized in the following table:

	Years Ended December 31,
	2013		2012		2011
	(in millions)
Allowance for Equity Funds Used During Construction	$	73	$	93	$	98
Allowance for Borrowed Funds Used During Construction		40		69		63

Jointly-owned Electric Facilities

We have electric facilities that are jointly-owned with nonaffiliated companies. Using our own financing, we are obligated to pay a share of the costs of these jointly-owned facilities in the same proportion as our ownership interest. Our proportionate share of the operating costs associated with such facilities is included on thestatements of income and the investments and accumulated depreciation are reflected on thebalance sheets under Property, Plant and Equipment as follows:

				Company’s Share as of December 31, 2013
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
	Type	Ownership		in Service		Progress		Depreciation
				(in millions)
W.C. Beckjord Generating Station, Unit 6 (a)	Coal	12.5	%	$	-	$	-	$	-
Conesville Generating Station, Unit 4 (b)	Coal	43.5	%		335		2		55
J.M. Stuart Generating Station (c)	Coal	26.0	%		544		11		190
Wm. H. Zimmer Generating Station (a)	Coal	25.4	%		809		2		399
Dolet Hills Generating Station, Unit 1 (d)	Lignite	40.2	%		262		47		198
Flint Creek Generating Station, Unit 1 (e)	Coal	50.0	%		123		54		66
Pirkey Generating Station, Unit 1 (e)	Lignite	85.9	%		519		29		376
Oklaunion Generating Station, Unit 1 (f)	Coal	70.3	%		404		7		223
Turk Generating Plant (e)	Coal	73.33	%		1,638		13		35
Transmission	NA	(g)			78		-		50
Total				$	4,712	$	165	$	1,592

				Company’s Share as of December 31, 2012
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
	Type	Ownership		in Service		Progress		Depreciation
				(in millions)
W.C. Beckjord Generating Station, Unit 6 (a)	Coal	12.5	%	$	-	$	-	$	-
Conesville Generating Station, Unit 4 (b)	Coal	43.5	%		310		26		59
J.M. Stuart Generating Station (c)	Coal	26.0	%		542		11		181
Wm. H. Zimmer Generating Station (a)	Coal	25.4	%		807		2		387
Dolet Hills Generating Station, Unit 1 (d)	Lignite	40.2	%		263		8		195
Flint Creek Generating Station, Unit 1 (e)	Coal	50.0	%		121		14		64
Pirkey Generating Station, Unit 1 (e)	Lignite	85.9	%		514		16		371
Oklaunion Generating Station, Unit 1 (f)	Coal	70.3	%		403		4		216
Turk Generating Plant (e)	Coal	73.33	%		1,613		(3)		-
Transmission	NA	(g)			69		4		50
Total				$	4,642	$	82	$	1,523

(a)Operated by Duke Energy Corporation, a nonaffiliated company. AEP's portion of Beckjord Plant,

Unit 6 was impaired in the fourth quarter of 2012. See "Impairments" section of Note 7.

(b)Operated by AGR.

(c)Operated by The Dayton Power & Light Company, a nonaffiliated company.

(d)Operated by CLECO, a nonaffiliated company.

(e)Operated by SWEPCo.

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

(g)Varying percentages of ownership.

NANotapplicable.

Appalachian Power Co [Member]

Property, Plant And Equipment

16. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

The Registrant Subsidiaries provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide annual property information for the Registrant Subsidiaries:

APCo
2013	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation	$	6,745,172	$	2,306,545	3.0	%	40	-	121	$	-	$	-	NA	NA
Transmission		2,160,660		490,143	1.6	%	25	-	87		-		-	NA	NA
Distribution		3,139,150		674,351	3.5	%	11	-	52		-		-	NA	NA
CWIP		184,701		(19,297)	NM		NM				-		-	NA	NA
Other		323,758		153,797	7.3	%	24	-	55		33,759		12,451	NM	NM
Total	$	12,553,441	$	3,605,539						$	33,759	$	12,451
2012	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation	$	5,632,665	$	1,928,562	3.0	%	40	-	121	$	-	$	-	NA	NA
Transmission		2,042,144		468,633	1.6	%	25	-	87		-		-	NA	NA
Distribution		2,991,898		641,504	3.4	%	13	-	57		-		-	NA	NA
CWIP		266,247		(19,379)	NM		NM				-		-	NA	NA
Other		340,027		164,932	6.8	%	24	-	55		33,300		12,387	NM	NM
Total	$	11,272,981	$	3,184,252						$	33,300	$	12,387

2011			Regulated					Nonregulated
			Annual Composite		Depreciable			Annual Composite	Depreciable
Functional Class of Property			Depreciation Rate		Life Ranges			Depreciation Rate	Life Ranges
					(in years)				(in years)
Generation			2.6	%	40	-	121	NA	NA
Transmission			1.6	%	25	-	87	NA	NA
Distribution			3.2	%	11	-	52	NA	NA
CWIP		NM			NM			NA	NA
Other			6.6	%	24	-	55	NM	NM
NA	Not applicable.
NM	Not meaningful.

For regulated operations, the composite depreciation rate generally includes a component for nonasset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant and coal mining facilities as well as asbestos removal. I&M records ARO for the decommissioning of the Cook Plant. The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2013 and 2012 aggregate carrying amounts of ARO by Registrant Subsidiary:

											Contribution/
											(Distribution)
	ARO as of								Revisions in		of OPCo		ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		Generation		December 31,
Company	2012		Expense		Incurred		Settled		Estimates		Assets		2013
	(in thousands)
APCo (a)(d)	$	115,168	$	7,343	$	-	$	(7,298)	$	7,083	$	30,311	$	152,607
I&M (a)(b)(d)		1,192,313		72,658		-		(635)		(9,152)		-		1,255,184
OPCo (a)(d)		269,940		14,957		158		(9,788)		53,208		(327,178)		1,297
PSO (a)(d)		21,999		1,703		-		(755)		(19)		-		22,928
SWEPCo (a)(c)(d)		78,017		4,912		4,191		(2,699)		3,209		-		87,630
	ARO as of								Revisions in			ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company	2011		Expense		Incurred		Settled		Estimates		2012
	(in thousands)
APCo (a)(d)	$	112,767	$	7,264	$	-	$	(8,921)	$	4,058	$	115,168
I&M (a)(b)(d)		1,013,122		53,848		-		(806)		126,149		1,192,313
OPCo (a)(d)		241,828		15,113		-		(8,294)		21,293		269,940
PSO (a)(d)		19,623		1,572		84		(949)		1,669		21,999
SWEPCo (a)(c)(d)		67,183		5,511		17,380		(3,831)		(8,226)		78,017

(a)Includes ARO related to ash disposal facilities.

(b)Includes ARO related to nuclear decommissioning costs for the Cook Plant of $1.2billion as of December 31, 2013 and 2012.

(c)IncludesARO related to Sabine and DHLC.

(d)Includes ARO related to asbestos removal.

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

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	2,353	$	1,684	$	9,212
I&M		19,943		9,724		15,395
OPCo		4,961		3,492		5,549
PSO		4,187		2,007		1,317
SWEPCo		7,338		57,054		48,731

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	1,522	$	1,347	$	6,257
I&M		9,752		4,717		7,838
OPCo		10,102		9,046		2,350
PSO		2,272		1,098		822
SWEPCo		4,262		48,499		40,904

Jointly-owned Electric Facilities

The Registrant Subsidiaries have electric facilities that are jointly-owned with affiliated and nonaffiliated companies. Using its own financing, each participating company is obligated to pay its share of the costs of any such jointly-owned facilities in the same proportion as its ownership interest. Each Registrant Subsidiary's proportionate share of the operating costs associated with such facilities is included in its statements of income and the investments and accumulated depreciation are reflected in its balance sheets under Property, Plant and Equipment as follows:

				Company’s Share as of December 31, 2013
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	797,485	$	54,577	$	471,787
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,555	$	1,844	$	57,576
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	261,685	$	47,131	$	197,720
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		122,566		54,281		65,546
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		519,158		28,833		375,718
Turk Generating Plant (i)	Coal	73.33	%		1,638,044		13,081		35,455
Total				$	2,541,453	$	143,326	$	674,439

				Company’s Share as of December 31, 2012
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
APCo
John E. Amos Generating Station, Unit 3 (a)	Coal	33.33	%	$	563,470	$	14,188	$	108,441
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	762,737	$	55,420	$	456,436
OPCo
John E. Amos Generating Station, Unit 3 (a)	Coal	66.67	%	$	995,005	$	14,093	$	213,163
W.C. Beckjord Generating Station, Unit 6 (c)	Coal	12.5	%		-		-		-
Conesville Generating Station, Unit 4 (d)	Coal	43.5	%		310,342		26,067		58,677
J.M. Stuart Generating Station (e)	Coal	26.0	%		541,719		11,151		180,687
Wm. H. Zimmer Generating Station (c)	Coal	25.4	%		807,431		1,817		387,209
Transmission	NA	(f)			69,148		4,101		50,516
Total				$	2,723,645	$	57,229	$	890,252
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,218	$	939	$	57,060
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	262,649	$	7,523	$	195,336
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		121,052		14,272		64,348
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		513,833		16,029		371,015
Turk Generating Plant (i)	Coal	73.33	%		1,612,618		(2,669)		59
Total				$	2,510,152	$	35,155	$	630,758

(a)Operated by APCo.

(b)Operated by I&M.

(c)Operated by Duke Energy Corporation, a nonaffiliated company. AEP's portion BeckjordPlant,Unit 6 was impaired in the fourth quarter of 2012. See "Impairments" section of Note 6.

(d)Operated by OPCo.

(e)Operated by The Dayton Power & Light Company, a nonaffiliated company.

(f)Varying percentages of ownership.

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

(h)Operated by CLECO, a nonaffiliated company.

(i)Operated by SWEPCo.

NANotapplicable.

Indiana Michigan Power Co [Member]

Property, Plant And Equipment

16. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

The Registrant Subsidiaries provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide annual property information for the Registrant Subsidiaries:

I&M
2013	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation	$	3,577,906	$	1,887,333	1.9	%	59	-	132	$	-	$	-	NA	NA
Transmission		1,304,225		420,295	1.5	%	50	-	75		-		-	NA	NA
Distribution		1,625,057		390,014	2.8	%	15	-	70		-		-	NA	NA
CWIP		427,164		(18,824)	NM		NM				-		-	NA	NA
Other		1,268,597		509,426	4.9	%	14	-	45		152,764		111,105	NM	NM
Total	$	8,202,949	$	3,188,244						$	152,764	$	111,105
2012	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation	$	4,062,733	$	2,130,136	1.7	%	59	-	132	$	-	$	-	NA	NA
Transmission		1,278,236		411,825	1.5	%	46	-	75		-		-	NA	NA
Distribution		1,553,358		373,342	2.5	%	14	-	70		-		-	NA	NA
CWIP		341,063		65,449	NM		NM				-		-	NA	NA
Other		573,836		141,291	9.6	%	14	-	40		151,477		110,092	NM	NM
Total	$	7,809,226	$	3,122,043						$	151,477	$	110,092

2011			Regulated					Nonregulated
			Annual Composite		Depreciable			Annual Composite	Depreciable
Functional Class of Property			Depreciable Rate		Life Ranges			Depreciable Rate	Life Ranges
					(in years)				(in years)
Generation			1.6	%	59	-	132	NA	NA
Transmission			1.4	%	46	-	75	NA	NA
Distribution			2.4	%	14	-	70	NA	NA
CWIP		NM			NM			NA	NA
Other			7.4	%	NM			NM	NM
NA	Not applicable.
NM	Not meaningful.

For regulated operations, the composite depreciation rate generally includes a component for nonasset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant and coal mining facilities as well as asbestos removal. I&M records ARO for the decommissioning of the Cook Plant. The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

As of December 31, 2013 and 2012, I&M's ARO liability for nuclear decommissioning of the Cook Plant was $1.2 billion and $1.2billion, respectively. These liabilities are reflected in Asset Retirement Obligations on I&M's balance sheets. As of December 31, 2013 and 2012, the fair value of I&M's assets that are legally restricted for purposes of settling decommissioning liabilities totaled $1.6 billion and $1.4 billion, respectively. These assets are included in Spent Nuclear Fuel and Decommissioning Trusts on I&M's balance sheets.

The following is a reconciliation of the 2013 and 2012 aggregate carrying amounts of ARO by Registrant Subsidiary:

											Contribution/
											(Distribution)
	ARO as of								Revisions in		of OPCo		ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		Generation		December 31,
Company	2012		Expense		Incurred		Settled		Estimates		Assets		2013
	(in thousands)
APCo (a)(d)	$	115,168	$	7,343	$	-	$	(7,298)	$	7,083	$	30,311	$	152,607
I&M (a)(b)(d)		1,192,313		72,658		-		(635)		(9,152)		-		1,255,184
OPCo (a)(d)		269,940		14,957		158		(9,788)		53,208		(327,178)		1,297
PSO (a)(d)		21,999		1,703		-		(755)		(19)		-		22,928
SWEPCo (a)(c)(d)		78,017		4,912		4,191		(2,699)		3,209		-		87,630
	ARO as of								Revisions in			ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company	2011		Expense		Incurred		Settled		Estimates		2012
	(in thousands)
APCo (a)(d)	$	112,767	$	7,264	$	-	$	(8,921)	$	4,058	$	115,168
I&M (a)(b)(d)		1,013,122		53,848		-		(806)		126,149		1,192,313
OPCo (a)(d)		241,828		15,113		-		(8,294)		21,293		269,940
PSO (a)(d)		19,623		1,572		84		(949)		1,669		21,999
SWEPCo (a)(c)(d)		67,183		5,511		17,380		(3,831)		(8,226)		78,017

(a)Includes ARO related to ash disposal facilities.

(b)Includes ARO related to nuclear decommissioning costs for the Cook Plant of $1.2billion as of December 31, 2013 and 2012.

(c)IncludesARO related to Sabine and DHLC.

(d)Includes ARO related to asbestos removal.

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

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	2,353	$	1,684	$	9,212
I&M		19,943		9,724		15,395
OPCo		4,961		3,492		5,549
PSO		4,187		2,007		1,317
SWEPCo		7,338		57,054		48,731

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	1,522	$	1,347	$	6,257
I&M		9,752		4,717		7,838
OPCo		10,102		9,046		2,350
PSO		2,272		1,098		822
SWEPCo		4,262		48,499		40,904

Jointly-owned Electric Facilities

The Registrant Subsidiaries have electric facilities that are jointly-owned with affiliated and nonaffiliated companies. Using its own financing, each participating company is obligated to pay its share of the costs of any such jointly-owned facilities in the same proportion as its ownership interest. Each Registrant Subsidiary's proportionate share of the operating costs associated with such facilities is included in its statements of income and the investments and accumulated depreciation are reflected in its balance sheets under Property, Plant and Equipment as follows:

				Company’s Share as of December 31, 2013
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	797,485	$	54,577	$	471,787
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,555	$	1,844	$	57,576
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	261,685	$	47,131	$	197,720
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		122,566		54,281		65,546
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		519,158		28,833		375,718
Turk Generating Plant (i)	Coal	73.33	%		1,638,044		13,081		35,455
Total				$	2,541,453	$	143,326	$	674,439

				Company’s Share as of December 31, 2012
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
APCo
John E. Amos Generating Station, Unit 3 (a)	Coal	33.33	%	$	563,470	$	14,188	$	108,441
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	762,737	$	55,420	$	456,436
OPCo
John E. Amos Generating Station, Unit 3 (a)	Coal	66.67	%	$	995,005	$	14,093	$	213,163
W.C. Beckjord Generating Station, Unit 6 (c)	Coal	12.5	%		-		-		-
Conesville Generating Station, Unit 4 (d)	Coal	43.5	%		310,342		26,067		58,677
J.M. Stuart Generating Station (e)	Coal	26.0	%		541,719		11,151		180,687
Wm. H. Zimmer Generating Station (c)	Coal	25.4	%		807,431		1,817		387,209
Transmission	NA	(f)			69,148		4,101		50,516
Total				$	2,723,645	$	57,229	$	890,252
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,218	$	939	$	57,060
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	262,649	$	7,523	$	195,336
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		121,052		14,272		64,348
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		513,833		16,029		371,015
Turk Generating Plant (i)	Coal	73.33	%		1,612,618		(2,669)		59
Total				$	2,510,152	$	35,155	$	630,758

(a)Operated by APCo.

(b)Operated by I&M.

(c)Operated by Duke Energy Corporation, a nonaffiliated company. AEP's portion BeckjordPlant,Unit 6 was impaired in the fourth quarter of 2012. See "Impairments" section of Note 6.

(d)Operated by OPCo.

(e)Operated by The Dayton Power & Light Company, a nonaffiliated company.

(f)Varying percentages of ownership.

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

(h)Operated by CLECO, a nonaffiliated company.

(i)Operated by SWEPCo.

NANotapplicable.

Ohio Power Co [Member]

Property, Plant And Equipment

16. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

The Registrant Subsidiaries provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide annual property information for the Registrant Subsidiaries:

OPCo
2013	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		Life Ranges			Equipment		Depreciation		Rate		Life Ranges
	(in thousands)						(in years)			(in thousands)						(in years)
Transmission	$	2,011,289	$	814,849	2.3	%	39	-	60	$	-	$	-	NA		NA
Distribution		3,877,532		1,023,313	2.7	%	12	-	60		-		-	NA		NA
CWIP		185,428		(29,825)	NM		NM				-		-	NM		NM
Other		354,195		163,894	7.5	%	25	-	50		10,378		811	NM		NM
Total	$	6,428,444	$	1,972,231						$	10,378	$	811
2012	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		Life Ranges			Equipment		Depreciation		Rate		Life Ranges
	(in thousands)						(in years)			(in thousands)						(in years)
Generation	$	-	$	-	NA		NA			$	8,673,296	$	3,200,427	3.0	%	35	-	66
Transmission		2,013,737		809,199	2.3	%	39	-	60		-		-	NA		NA
Distribution		3,722,745		1,011,324	2.7	%	12	-	60		-		-	NA		NA
CWIP		147,408		(21,198)	NM		NM				207,089		1,350	NM		NM
Other		427,412		224,153	7.3	%	25	-	50		143,742		17,550	NM		NM
Total	$	6,311,302	$	2,023,478						$	9,024,127	$	3,219,327

2011

Regulated

Nonregulated

Annual Composite

Annual Composite

Depreciation

Depreciable

Depreciation

Depreciable

Functional Class of Property

Rate

Life Ranges

Rate

Life Ranges

(in years)

(in years)

Generation

NA

NA

3.2

%

35

-

66

Transmission

2.3

%

27

-

70

NA

NA

Distribution

3.7

%

12

-

56

NA

NA

CWIP

NM

NM

NM

NM

Other

8.7

%

NM

NM

NM

NA

Not applicable.

NM

Not meaningful.

For regulated operations, the composite depreciation rate generally includes a component for nonasset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant and coal mining facilities as well as asbestos removal. I&M records ARO for the decommissioning of the Cook Plant. The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2013 and 2012 aggregate carrying amounts of ARO by Registrant Subsidiary:

											Contribution/
											(Distribution)
	ARO as of								Revisions in		of OPCo		ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		Generation		December 31,
Company	2012		Expense		Incurred		Settled		Estimates		Assets		2013
	(in thousands)
APCo (a)(d)	$	115,168	$	7,343	$	-	$	(7,298)	$	7,083	$	30,311	$	152,607
I&M (a)(b)(d)		1,192,313		72,658		-		(635)		(9,152)		-		1,255,184
OPCo (a)(d)		269,940		14,957		158		(9,788)		53,208		(327,178)		1,297
PSO (a)(d)		21,999		1,703		-		(755)		(19)		-		22,928
SWEPCo (a)(c)(d)		78,017		4,912		4,191		(2,699)		3,209		-		87,630
	ARO as of								Revisions in			ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company	2011		Expense		Incurred		Settled		Estimates		2012
	(in thousands)
APCo (a)(d)	$	112,767	$	7,264	$	-	$	(8,921)	$	4,058	$	115,168
I&M (a)(b)(d)		1,013,122		53,848		-		(806)		126,149		1,192,313
OPCo (a)(d)		241,828		15,113		-		(8,294)		21,293		269,940
PSO (a)(d)		19,623		1,572		84		(949)		1,669		21,999
SWEPCo (a)(c)(d)		67,183		5,511		17,380		(3,831)		(8,226)		78,017

(a)Includes ARO related to ash disposal facilities.

(b)Includes ARO related to nuclear decommissioning costs for the Cook Plant of $1.2billion as of December 31, 2013 and 2012.

(c)IncludesARO related to Sabine and DHLC.

(d)Includes ARO related to asbestos removal.

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

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	2,353	$	1,684	$	9,212
I&M		19,943		9,724		15,395
OPCo		4,961		3,492		5,549
PSO		4,187		2,007		1,317
SWEPCo		7,338		57,054		48,731

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	1,522	$	1,347	$	6,257
I&M		9,752		4,717		7,838
OPCo		10,102		9,046		2,350
PSO		2,272		1,098		822
SWEPCo		4,262		48,499		40,904

Jointly-owned Electric Facilities

The Registrant Subsidiaries have electric facilities that are jointly-owned with affiliated and nonaffiliated companies. Using its own financing, each participating company is obligated to pay its share of the costs of any such jointly-owned facilities in the same proportion as its ownership interest. Each Registrant Subsidiary's proportionate share of the operating costs associated with such facilities is included in its statements of income and the investments and accumulated depreciation are reflected in its balance sheets under Property, Plant and Equipment as follows:

				Company’s Share as of December 31, 2013
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	797,485	$	54,577	$	471,787
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,555	$	1,844	$	57,576
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	261,685	$	47,131	$	197,720
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		122,566		54,281		65,546
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		519,158		28,833		375,718
Turk Generating Plant (i)	Coal	73.33	%		1,638,044		13,081		35,455
Total				$	2,541,453	$	143,326	$	674,439

				Company’s Share as of December 31, 2012
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
APCo
John E. Amos Generating Station, Unit 3 (a)	Coal	33.33	%	$	563,470	$	14,188	$	108,441
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	762,737	$	55,420	$	456,436
OPCo
John E. Amos Generating Station, Unit 3 (a)	Coal	66.67	%	$	995,005	$	14,093	$	213,163
W.C. Beckjord Generating Station, Unit 6 (c)	Coal	12.5	%		-		-		-
Conesville Generating Station, Unit 4 (d)	Coal	43.5	%		310,342		26,067		58,677
J.M. Stuart Generating Station (e)	Coal	26.0	%		541,719		11,151		180,687
Wm. H. Zimmer Generating Station (c)	Coal	25.4	%		807,431		1,817		387,209
Transmission	NA	(f)			69,148		4,101		50,516
Total				$	2,723,645	$	57,229	$	890,252
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,218	$	939	$	57,060
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	262,649	$	7,523	$	195,336
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		121,052		14,272		64,348
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		513,833		16,029		371,015
Turk Generating Plant (i)	Coal	73.33	%		1,612,618		(2,669)		59
Total				$	2,510,152	$	35,155	$	630,758

(a)Operated by APCo.

(b)Operated by I&M.

(c)Operated by Duke Energy Corporation, a nonaffiliated company. AEP's portion BeckjordPlant,Unit 6 was impaired in the fourth quarter of 2012. See "Impairments" section of Note 6.

(d)Operated by OPCo.

(e)Operated by The Dayton Power & Light Company, a nonaffiliated company.

(f)Varying percentages of ownership.

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

(h)Operated by CLECO, a nonaffiliated company.

(i)Operated by SWEPCo.

NANotapplicable.

Public Service Co of Oklahoma [Member]

Property, Plant And Equipment

16. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

The Registrant Subsidiaries provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide annual property information for the Registrant Subsidiaries:

PSO
2013	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation	$	1,203,221	$	583,486	1.7	%	35	-	70	$	-	$	-	NA	NA
Transmission		731,312		186,040	1.9	%	40	-	75		-		-	NA	NA
Distribution		1,986,032		365,299	2.3	%	30	-	65		-		-	NA	NA
CWIP		175,890		(15,138)	NM		NM				-		-	NA	NA
Other		387,856		203,841	4.1	%	5	-	40		5,170		(6)	NM	NM
Total	$	4,484,311	$	1,323,528						$	5,170	$	(6)
2012	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation	$	1,346,530	$	654,989	1.7	%	35	-	70	$	-	$	-	NA	NA
Transmission		706,917		176,187	1.9	%	40	-	75		-		-	NA	NA
Distribution		1,859,557		345,207	2.4	%	30	-	65		-		-	NA	NA
CWIP		95,170		(9,281)	NM		NM				-		-	NA	NA
Other		205,373		111,837	6.6	%	5	-	40		5,176		2	NM	NM
Total	$	4,213,547	$	1,278,939						$	5,176	$	2

2011		Regulated					Nonregulated
		Annual Composite					Annual Composite
		Depreciation		Depreciable			Depreciation	Depreciable
Functional Class of Property		Rate		Life Ranges			Rate	Life Ranges
				(in years)				(in years)
Generation		1.8	%	9	-	70	NA	NA
Transmission		1.9	%	40	-	75	NA	NA
Distribution		2.4	%	30	-	65	NA	NA
CWIP		NM		NM			NA	NA
Other		8.3	%	5	-	35	NM	NM
NA	Not applicable.
NM	Not meaningful.

For regulated operations, the composite depreciation rate generally includes a component for nonasset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant and coal mining facilities as well as asbestos removal. I&M records ARO for the decommissioning of the Cook Plant. The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2013 and 2012 aggregate carrying amounts of ARO by Registrant Subsidiary:

											Contribution/
											(Distribution)
	ARO as of								Revisions in		of OPCo		ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		Generation		December 31,
Company	2012		Expense		Incurred		Settled		Estimates		Assets		2013
	(in thousands)
APCo (a)(d)	$	115,168	$	7,343	$	-	$	(7,298)	$	7,083	$	30,311	$	152,607
I&M (a)(b)(d)		1,192,313		72,658		-		(635)		(9,152)		-		1,255,184
OPCo (a)(d)		269,940		14,957		158		(9,788)		53,208		(327,178)		1,297
PSO (a)(d)		21,999		1,703		-		(755)		(19)		-		22,928
SWEPCo (a)(c)(d)		78,017		4,912		4,191		(2,699)		3,209		-		87,630
	ARO as of								Revisions in			ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company	2011		Expense		Incurred		Settled		Estimates		2012
	(in thousands)
APCo (a)(d)	$	112,767	$	7,264	$	-	$	(8,921)	$	4,058	$	115,168
I&M (a)(b)(d)		1,013,122		53,848		-		(806)		126,149		1,192,313
OPCo (a)(d)		241,828		15,113		-		(8,294)		21,293		269,940
PSO (a)(d)		19,623		1,572		84		(949)		1,669		21,999
SWEPCo (a)(c)(d)		67,183		5,511		17,380		(3,831)		(8,226)		78,017

(a)Includes ARO related to ash disposal facilities.

(b)Includes ARO related to nuclear decommissioning costs for the Cook Plant of $1.2billion as of December 31, 2013 and 2012.

(c)IncludesARO related to Sabine and DHLC.

(d)Includes ARO related to asbestos removal.

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

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	2,353	$	1,684	$	9,212
I&M		19,943		9,724		15,395
OPCo		4,961		3,492		5,549
PSO		4,187		2,007		1,317
SWEPCo		7,338		57,054		48,731

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	1,522	$	1,347	$	6,257
I&M		9,752		4,717		7,838
OPCo		10,102		9,046		2,350
PSO		2,272		1,098		822
SWEPCo		4,262		48,499		40,904

Jointly-owned Electric Facilities

The Registrant Subsidiaries have electric facilities that are jointly-owned with affiliated and nonaffiliated companies. Using its own financing, each participating company is obligated to pay its share of the costs of any such jointly-owned facilities in the same proportion as its ownership interest. Each Registrant Subsidiary's proportionate share of the operating costs associated with such facilities is included in its statements of income and the investments and accumulated depreciation are reflected in its balance sheets under Property, Plant and Equipment as follows:

				Company’s Share as of December 31, 2013
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	797,485	$	54,577	$	471,787
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,555	$	1,844	$	57,576
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	261,685	$	47,131	$	197,720
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		122,566		54,281		65,546
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		519,158		28,833		375,718
Turk Generating Plant (i)	Coal	73.33	%		1,638,044		13,081		35,455
Total				$	2,541,453	$	143,326	$	674,439

				Company’s Share as of December 31, 2012
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
APCo
John E. Amos Generating Station, Unit 3 (a)	Coal	33.33	%	$	563,470	$	14,188	$	108,441
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	762,737	$	55,420	$	456,436
OPCo
John E. Amos Generating Station, Unit 3 (a)	Coal	66.67	%	$	995,005	$	14,093	$	213,163
W.C. Beckjord Generating Station, Unit 6 (c)	Coal	12.5	%		-		-		-
Conesville Generating Station, Unit 4 (d)	Coal	43.5	%		310,342		26,067		58,677
J.M. Stuart Generating Station (e)	Coal	26.0	%		541,719		11,151		180,687
Wm. H. Zimmer Generating Station (c)	Coal	25.4	%		807,431		1,817		387,209
Transmission	NA	(f)			69,148		4,101		50,516
Total				$	2,723,645	$	57,229	$	890,252
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,218	$	939	$	57,060
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	262,649	$	7,523	$	195,336
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		121,052		14,272		64,348
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		513,833		16,029		371,015
Turk Generating Plant (i)	Coal	73.33	%		1,612,618		(2,669)		59
Total				$	2,510,152	$	35,155	$	630,758

(a)Operated by APCo.

(b)Operated by I&M.

(c)Operated by Duke Energy Corporation, a nonaffiliated company. AEP's portion BeckjordPlant,Unit 6 was impaired in the fourth quarter of 2012. See "Impairments" section of Note 6.

(d)Operated by OPCo.

(e)Operated by The Dayton Power & Light Company, a nonaffiliated company.

(f)Varying percentages of ownership.

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

(h)Operated by CLECO, a nonaffiliated company.

(i)Operated by SWEPCo.

NANotapplicable.

Southwestern Electric Power Co [Member]

Property, Plant And Equipment

16. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

The Registrant Subsidiaries provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following tables provide annual property information for the Registrant Subsidiaries:

SWEPCo
2013	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation (a)	$	3,764,429	$	1,062,166	2.2	%	40	-	70	$	-	$	-	NA	NA
Transmission		1,165,167		312,567	2.3	%	50	-	70		-		-	NA	NA
Distribution		1,843,912		563,087	2.6	%	25	-	65		-		-	NA	NA
CWIP (a)		281,849		(7,355)	NM		NM				-		-	NA	NA
Other		574,131		326,871	5.0	%	7	-	51		295,099		134,316	NM	NM
Total	$	7,629,488	$	2,257,336						$	295,099	$	134,316
2012	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		Life Ranges			Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)			(in thousands)					(in years)
Generation (a)	$	3,888,230	$	1,092,566	2.2	%	35	-	65	$	-	$	-	NA	NA
Transmission		1,115,795		301,159	2.3	%	50	-	70		-		-	NA	NA
Distribution		1,758,988		556,904	2.6	%	25	-	65		-		-	NA	NA
CWIP (a)		99,783		(8,294)	NM		NM				-		-	NA	NA
Other		397,643		225,254	6.6	%	7	-	47		290,611		116,669	NM	NM
Total	$	7,260,439	$	2,167,589						$	290,611	$	116,669

2011			Regulated					Nonregulated
		Annual Composite					Annual Composite
		Depreciation		Depreciable			Depreciation		Depreciable
Functional Class of Property		Rate		Life Ranges			Rate		Life Ranges
				(in years)					(in years)
Generation		2.1	%	35	-	68	NA		NA
Transmission		2.3	%	50	-	70	NA		NA
Distribution		2.6	%	25	-	65	NA		NA
CWIP		NM		NM			NM		NM
Other		6.9	%	7	-	47	NM		NM
(a)	SWEPCo's regulated section includes amounts related to SWEPCo's Arkansas jurisdictional share of the Turk Plant.
NA	Not applicable.
NM	Not meaningful.

SWEPCo provides for depreciation, depletion and amortization of coal-mining assets over each asset's estimated useful life or the estimated life of each mine, whichever is shorter, using the straight-line method for mining structures and equipment. SWEPCo uses either the straight-line method or the units-of-production method to amortize mine development costs and deplete coal rights based on estimated recoverable tonnages. SWEPCo includes these costs in fuel expense.

For regulated operations, the composite depreciation rate generally includes a component for nonasset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant and coal mining facilities as well as asbestos removal. I&M records ARO for the decommissioning of the Cook Plant. The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2013 and 2012 aggregate carrying amounts of ARO by Registrant Subsidiary:

											Contribution/
											(Distribution)
	ARO as of								Revisions in		of OPCo		ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		Generation		December 31,
Company	2012		Expense		Incurred		Settled		Estimates		Assets		2013
	(in thousands)
APCo (a)(d)	$	115,168	$	7,343	$	-	$	(7,298)	$	7,083	$	30,311	$	152,607
I&M (a)(b)(d)		1,192,313		72,658		-		(635)		(9,152)		-		1,255,184
OPCo (a)(d)		269,940		14,957		158		(9,788)		53,208		(327,178)		1,297
PSO (a)(d)		21,999		1,703		-		(755)		(19)		-		22,928
SWEPCo (a)(c)(d)		78,017		4,912		4,191		(2,699)		3,209		-		87,630
	ARO as of								Revisions in			ARO as of
	December 31,		Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company	2011		Expense		Incurred		Settled		Estimates		2012
	(in thousands)
APCo (a)(d)	$	112,767	$	7,264	$	-	$	(8,921)	$	4,058	$	115,168
I&M (a)(b)(d)		1,013,122		53,848		-		(806)		126,149		1,192,313
OPCo (a)(d)		241,828		15,113		-		(8,294)		21,293		269,940
PSO (a)(d)		19,623		1,572		84		(949)		1,669		21,999
SWEPCo (a)(c)(d)		67,183		5,511		17,380		(3,831)		(8,226)		78,017

(a)Includes ARO related to ash disposal facilities.

(b)Includes ARO related to nuclear decommissioning costs for the Cook Plant of $1.2billion as of December 31, 2013 and 2012.

(c)IncludesARO related to Sabine and DHLC.

(d)Includes ARO related to asbestos removal.

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

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	2,353	$	1,684	$	9,212
I&M		19,943		9,724		15,395
OPCo		4,961		3,492		5,549
PSO		4,187		2,007		1,317
SWEPCo		7,338		57,054		48,731

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2013		2012		2011
	(in thousands)
APCo	$	1,522	$	1,347	$	6,257
I&M		9,752		4,717		7,838
OPCo		10,102		9,046		2,350
PSO		2,272		1,098		822
SWEPCo		4,262		48,499		40,904

Jointly-owned Electric Facilities

The Registrant Subsidiaries have electric facilities that are jointly-owned with affiliated and nonaffiliated companies. Using its own financing, each participating company is obligated to pay its share of the costs of any such jointly-owned facilities in the same proportion as its ownership interest. Each Registrant Subsidiary's proportionate share of the operating costs associated with such facilities is included in its statements of income and the investments and accumulated depreciation are reflected in its balance sheets under Property, Plant and Equipment as follows:

				Company’s Share as of December 31, 2013
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	797,485	$	54,577	$	471,787
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,555	$	1,844	$	57,576
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	261,685	$	47,131	$	197,720
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		122,566		54,281		65,546
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		519,158		28,833		375,718
Turk Generating Plant (i)	Coal	73.33	%		1,638,044		13,081		35,455
Total				$	2,541,453	$	143,326	$	674,439

				Company’s Share as of December 31, 2012
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
Company	Type	Ownership		in Service		Progress		Depreciation
				(in thousands)
APCo
John E. Amos Generating Station, Unit 3 (a)	Coal	33.33	%	$	563,470	$	14,188	$	108,441
I&M
Rockport Generating Plant, Unit 1 (b)	Coal	50.0	%	$	762,737	$	55,420	$	456,436
OPCo
John E. Amos Generating Station, Unit 3 (a)	Coal	66.67	%	$	995,005	$	14,093	$	213,163
W.C. Beckjord Generating Station, Unit 6 (c)	Coal	12.5	%		-		-		-
Conesville Generating Station, Unit 4 (d)	Coal	43.5	%		310,342		26,067		58,677
J.M. Stuart Generating Station (e)	Coal	26.0	%		541,719		11,151		180,687
Wm. H. Zimmer Generating Station (c)	Coal	25.4	%		807,431		1,817		387,209
Transmission	NA	(f)			69,148		4,101		50,516
Total				$	2,723,645	$	57,229	$	890,252
PSO
Oklaunion Generating Station, Unit 1 (g)	Coal	15.6	%	$	93,218	$	939	$	57,060
SWEPCo
Dolet Hills Generating Station, Unit 1 (h)	Lignite	40.2	%	$	262,649	$	7,523	$	195,336
Flint Creek Generating Station, Unit 1 (i)	Coal	50.0	%		121,052		14,272		64,348
Pirkey Generating Station, Unit 1 (i)	Lignite	85.9	%		513,833		16,029		371,015
Turk Generating Plant (i)	Coal	73.33	%		1,612,618		(2,669)		59
Total				$	2,510,152	$	35,155	$	630,758

(a)Operated by APCo.

(b)Operated by I&M.

(c)Operated by Duke Energy Corporation, a nonaffiliated company. AEP's portion BeckjordPlant,Unit 6 was impaired in the fourth quarter of 2012. See "Impairments" section of Note 6.

(d)Operated by OPCo.

(e)Operated by The Dayton Power & Light Company, a nonaffiliated company.

(f)Varying percentages of ownership.

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

(h)Operated by CLECO, a nonaffiliated company.

(i)Operated by SWEPCo.

NANotapplicable.