Notional Volume of Derivative Instruments

		Volume
			December 31,			Unit of
Primary Risk Exposure			2013		2012	Measure
		(in millions)
Commodity:
	Power		406		498	MWhs
	Coal		4		10	Tons
	Natural Gas		127		147	MMBtus
	Heating Oil and Gasoline		6		6	Gallons
	Interest Rate	$	191	$	235	USD

Interest Rate and Foreign Currency		$	820	$	1,199	USD

Amount of Gain (Loss) Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
December 31, 2013

								Gross Amounts		Gross		Net Amounts of
		Risk Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)
		(in millions)
Current Risk Management Assets		$	347	$	12	$	4	$	363	$	(203)	$	160
Long-term Risk Management Assets			368		3		-		371		(74)		297
Total Assets			715		15		4		734		(277)		457

Current Risk Management Liabilities			292		11		1		304		(214)		90
Long-term Risk Management Liabilities			237		3		15		255		(78)		177
Total Liabilities			529		14		16		559		(292)		267

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	186	$	1	$	(12)	$	175	$	15	$	190

Fair Value of Derivative Instruments
December 31, 2012

								Gross Amounts		Gross		Net Amounts of
		Risk Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)
		(in millions)
Current Risk Management Assets		$	589	$	32	$	3	$	624	$	(433)	$	191
Long-term Risk Management Assets			528		5		1		534		(166)		368
Total Assets			1,117		37		4		1,158		(599)		559

Current Risk Management Liabilities			546		43		35		624		(469)		155
Long-term Risk Management Liabilities			383		6		6		395		(181)		214
Total Liabilities			929		49		41		1,019		(650)		369

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	188	$	(12)	$	(37)	$	139	$	51	$	190

(a) Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."

(b) Amounts primarily include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.

(c) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on
Risk Management Contracts

	Years Ended December 31,
Location of Gain (Loss)	2013		2012		2011
	(in millions)
Vertically Integrated Utilities Revenues	$	15	$	10	$	18
Generation & Marketing Revenues		49		50		48
Regulatory Assets (a)		(2)		(43)		(22)
Regulatory Liabilities (a)		(5)		8		(3)
Total Gain (Loss) on Risk Management Contracts	$	57	$	25	$	41

(a) Represents realized and unrealized gains and losses subject to regulatory accounting treatment

recorded as either current or noncurrent on the balance sheets.

Collateral Required Under Various Triggering Events

Impact of Cash Flow Hedges on the Balance Sheet
December 31, 2013

				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	7	$	-	$	7
Hedging Liabilities (a)			6		2		8
AOCI Gain (Loss) Net of Tax			-		(23)		(23)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		-		(4)		(4)

Impact of Cash Flow Hedges on the Balance Sheet
December 31, 2012

				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	24	$	-	$	24
Hedging Liabilities (a)			36		37		73
AOCI Gain (Loss) Net of Tax			(8)		(30)		(38)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		(8)		(4)		(12)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

		December 31,
		2013		2012
		(in millions)
Liabilities for Derivative Contracts with Credit Downgrade Triggers		$	3	$	7
Amount of Collateral AEP Subsidiaries Would Have Been
	Required to Post		33		32
Amount Attributable to RTO and ISO Activities			28		31

	December 31,
	2013		2012
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
Netting Arrangements	$	293	$	469
Amount of Cash Collateral Posted		1		8
Additional Settlement Liability if Cross Default Provision is Triggered		235		328

Appalachian Power Co [Member]

	Notional Volume of Derivative Instruments
	December 31, 2013

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	Notional Volume of Derivative Instruments
	December 31, 2012

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-

	December 31,
	2013				2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	-	$	2,993	$	1,262	$	11,029
I&M		-		2,030		867		7,576
OPCo		-		-		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		3		-		-

Amount of Gain (Loss) Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
December 31, 2013

APCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	46,431	$	389	$	-	$	46,820	$	(25,649)	$	21,171
Long-term Risk Management Assets			20,948		-		-		20,948		(4,000)		16,948
Total Assets			67,379		389		-		67,768		(29,649)		38,119

Current Risk Management Liabilities			37,010		313		-		37,323		(28,431)		8,892
Long-term Risk Management Liabilities			14,452		-		-		14,452		(4,211)		10,241
Total Liabilities			51,462		313		-		51,775		(32,642)		19,133

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	15,917	$	76	$	-	$	15,993	$	2,993	$	18,986

Fair Value of Derivative Instruments
December 31, 2012

APCo

		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	127,645	$	338	$	-	$	127,983	$	(97,023)	$	30,960
Long-term Risk Management Assets			60,498		215		-		60,713		(26,353)		34,360
Total Assets			188,143		553		-		188,696		(123,376)		65,320

Current Risk Management Liabilities			119,430		1,182		-		120,612		(103,914)		16,698
Long-term Risk Management Liabilities			47,281		424		-		47,705		(29,229)		18,476
Total Liabilities			166,711		1,606		-		168,317		(133,143)		35,174

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	21,432	$	(1,053)	$	-	$	20,379	$	9,767	$	30,146

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,019	$	10,624	$	4,886	$	371	$	647
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(4)		(26)		(5,795)		2,956		424
Regulatory Liabilities (a)			(338)		(9,062)		2,920		999		1,462
Total Gain (Loss) on Risk Management
	Contracts	$	1,677	$	1,536	$	2,011	$	4,326	$	2,533

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)

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

Collateral Required Under Various Triggering Events

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2013

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	94	$	(806)		12
I&M		46		(1,568)		12
OPCo		105		1,363		12
PSO		57		759		12
SWEPCo		66		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(507)	$	(1,013)
I&M		(355)		(1,600)
OPCo		(720)		1,359
PSO		21		759
SWEPCo		22		(2,267)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

	December 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-

Indiana Michigan Power Co [Member]

	Notional Volume of Derivative Instruments
	December 31, 2013

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	Notional Volume of Derivative Instruments
	December 31, 2012

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-

	December 31,
	2013				2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	-	$	2,993	$	1,262	$	11,029
I&M		-		2,030		867		7,576
OPCo		-		-		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		3		-		-

Amount of Gain (Loss) Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
December 31, 2013

I&M
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	33,229	$	234	$	-	$	33,463	$	(18,075)	$	15,388
Long-term Risk Management Assets			14,208		-		-		14,208		(2,713)		11,495
Total Assets			47,437		234		-		47,671		(20,788)		26,883

Current Risk Management Liabilities			26,779		212		-		26,991		(19,962)		7,029
Long-term Risk Management Liabilities			9,802		-		-		9,802		(2,856)		6,946
Total Liabilities			36,581		212		-		36,793		(22,818)		13,975

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	10,856	$	22	$	-	$	10,878	$	2,030	$	12,908

Fair Value of Derivative Instruments
December 31, 2012

I&M
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	93,268	$	220	$	-	$	93,488	$	(66,514)	$	26,974
Long-term Risk Management Assets			41,553		148		-		41,701		(18,132)		23,569
Total Assets			134,821		368		-		135,189		(84,646)		50,543

Current Risk Management Liabilities			82,433		807		19,524		102,764		(71,247)		31,517
Long-term Risk Management Liabilities			33,714		292		-		34,006		(20,108)		13,898
Total Liabilities			116,147		1,099		19,524		136,770		(91,355)		45,415

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	18,674	$	(731)	$	(19,524)	$	(1,581)	$	6,709	$	5,128

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,019	$	10,624	$	4,886	$	371	$	647
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(4)		(26)		(5,795)		2,956		424
Regulatory Liabilities (a)			(338)		(9,062)		2,920		999		1,462
Total Gain (Loss) on Risk Management
	Contracts	$	1,677	$	1,536	$	2,011	$	4,326	$	2,533

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)

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

Collateral Required Under Various Triggering Events

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2013

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	94	$	(806)		12
I&M		46		(1,568)		12
OPCo		105		1,363		12
PSO		57		759		12
SWEPCo		66		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(507)	$	(1,013)
I&M		(355)		(1,600)
OPCo		(720)		1,359
PSO		21		759
SWEPCo		22		(2,267)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

	December 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-

Ohio Power Co [Member]

	Notional Volume of Derivative Instruments
	December 31, 2013

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	Notional Volume of Derivative Instruments
	December 31, 2012

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-

	December 31,
	2013				2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	-	$	2,993	$	1,262	$	11,029
I&M		-		2,030		867		7,576
OPCo		-		-		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		3		-		-

Amount of Gain (Loss) Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
December 31, 2013

OPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	3,269	$	162	$	-	$	3,431	$	(349)	$	3,082
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			3,269		162		-		3,431		(349)		3,082

Current Risk Management Liabilities			349		-		-		349		(349)		-
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			349		-		-		349		(349)		-

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	2,920	$	162	$	-	$	3,082	$	-	$	3,082

Fair Value of Derivative Instruments
December 31, 2012

OPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	183,064	$	464	$	-	$	183,528	$	(139,215)	$	44,313
Long-term Risk Management Assets			85,023		303		-		85,326		(37,038)		48,288
Total Assets			268,087		767		-		268,854		(176,253)		92,601

Current Risk Management Liabilities			171,397		1,658		-		173,055		(148,900)		24,155
Long-term Risk Management Liabilities			66,448		596		-		67,044		(41,079)		25,965
Total Liabilities			237,845		2,254		-		240,099		(189,979)		50,120

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	30,242	$	(1,487)	$	-	$	28,755	$	13,726	$	42,481

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,019	$	10,624	$	4,886	$	371	$	647
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(4)		(26)		(5,795)		2,956		424
Regulatory Liabilities (a)			(338)		(9,062)		2,920		999		1,462
Total Gain (Loss) on Risk Management
	Contracts	$	1,677	$	1,536	$	2,011	$	4,326	$	2,533

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)

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

Collateral Required Under Various Triggering Events

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2013

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	94	$	(806)		12
I&M		46		(1,568)		12
OPCo		105		1,363		12
PSO		57		759		12
SWEPCo		66		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(507)	$	(1,013)
I&M		(355)		(1,600)
OPCo		(720)		1,359
PSO		21		759
SWEPCo		22		(2,267)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

	December 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-

Public Service Co of Oklahoma [Member]

	Notional Volume of Derivative Instruments
	December 31, 2013

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	Notional Volume of Derivative Instruments
	December 31, 2012

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-

	December 31,
	2013				2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	-	$	2,993	$	1,262	$	11,029
I&M		-		2,030		867		7,576
OPCo		-		-		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		3		-		-

Amount of Gain (Loss) Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
December 31, 2013

PSO
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	1,078	$	84	$	-	$	1,162	$	5	$	1,167
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			1,078		84		-		1,162		5		1,167

Current Risk Management Liabilities			81		-		-		81		4		85
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			81		-		-		81		4		85

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	997	$	84	$	-	$	1,081	$	1	$	1,082

Fair Value of Derivative Instruments
December 31, 2012

PSO
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	1,657	$	42	$	-	$	1,699	$	(1,190)	$	509
Long-term Risk Management Assets			-		-		-		-		31		31
Total Assets			1,657		42		-		1,699		(1,159)		540

Current Risk Management Liabilities			7,021		17		-		7,038		(1,190)		5,848
Long-term Risk Management Liabilities			-		-		-		-		31		31
Total Liabilities			7,021		17		-		7,038		(1,159)		5,879

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(5,364)	$	25	$	-	$	(5,339)	$	-	$	(5,339)

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,019	$	10,624	$	4,886	$	371	$	647
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(4)		(26)		(5,795)		2,956		424
Regulatory Liabilities (a)			(338)		(9,062)		2,920		999		1,462
Total Gain (Loss) on Risk Management
	Contracts	$	1,677	$	1,536	$	2,011	$	4,326	$	2,533

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)

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

Collateral Required Under Various Triggering Events

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2013

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	94	$	(806)		12
I&M		46		(1,568)		12
OPCo		105		1,363		12
PSO		57		759		12
SWEPCo		66		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(507)	$	(1,013)
I&M		(355)		(1,600)
OPCo		(720)		1,359
PSO		21		759
SWEPCo		22		(2,267)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

	December 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683

	December 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	19,648	$	-	$	18,568
I&M		13,326		-		12,594
OPCo		-		-		-
PSO		3		-		3
SWEPCo		3		-		3

	December 31, 2012
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	49,465	$	1,822	$	30,160
I&M		53,499		1,252		40,240
OPCo		69,516		2,561		42,386
PSO		-		-		-
SWEPCo		-		-		-

Southwestern Electric Power Co [Member]

	Notional Volume of Derivative Instruments
	December 31, 2013

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		48,995		33,231		34,843		13,469		17,057
	Coal		Tons		31		3,389		-		1,013		1,692
	Natural Gas		MMBtus		2,477		1,680		-		-		-
	Heating Oil and
		Gasoline	Gallons		1,089		521		1,108		614		699
	Interest Rate		USD	$	12,720	$	8,627	$	-	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	-	$	-	$	-	$	-

	Notional Volume of Derivative Instruments
	December 31, 2012

	Primary Risk		Unit of
	Exposure		Measure	APCo		I&M		OPCo		PSO		SWEPCo

				(in thousands)
Commodity:
	Power		MWhs		94,059		64,791		132,188		-		-
	Coal		Tons		1,401		2,711		3,033		1,980		1,312
	Natural Gas		MMBtus		10,077		6,922		14,163		-		-
	Heating Oil and
		Gasoline	Gallons		1,050		532		1,260		616		585
	Interest Rate		USD	$	24,146	$	16,584	$	33,934	$	-	$	-

Interest Rate and
	Foreign Currency		USD	$	-	$	200,000	$	-	$	-	$	-

	December 31,
	2013				2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	-	$	2,993	$	1,262	$	11,029
I&M		-		2,030		867		7,576
OPCo		-		-		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		3		-		-

Amount of Gain (Loss) Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
December 31, 2013

SWEPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	1,233	$	97	$	-	$	1,330	$	(151)	$	1,179
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			1,233		97		-		1,330		(151)		1,179

Current Risk Management Liabilities			154		-		-		154		(154)		-
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			154		-		-		154		(154)		-

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	1,079	$	97	$	-	$	1,176	$	3	$	1,179

Fair Value of Derivative Instruments
December 31, 2012

SWEPCo
		Risk						Gross Amounts		Gross		Net Amounts of
		Management						of Risk		Amounts		Assets/Liabilities
		Contracts		Hedging Contracts				Management		Offset in the		Presented in the
						Interest Rate		Assets/		Statement of		Statement of
						and Foreign		Liabilities		Financial		Financial
Balance Sheet Location		Commodity (a)		Commodity (a)		Currency (a)		Recognized		Position (b)		Position (c)

		(in thousands)
Current Risk Management Assets		$	2,804	$	41	$	-	$	2,845	$	(2,150)	$	695
Long-term Risk Management Assets			-		-		-		-		-		-
Total Assets			2,804		41		-		2,845		(2,150)		695

Current Risk Management Liabilities			3,261		17		-		3,278		(2,150)		1,128
Long-term Risk Management Liabilities			-		-		-		-		-		-
Total Liabilities			3,261		17		-		3,278		(2,150)		1,128

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(457)	$	24	$	-	$	(433)	$	-	$	(433)

(b) Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging."

(c) There are no derivative contracts subject to a master netting arrangement or similar agreement which are not offset in the statement of financial position.

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,019	$	10,624	$	4,886	$	371	$	647
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(4)		(26)		(5,795)		2,956		424
Regulatory Liabilities (a)			(338)		(9,062)		2,920		999		1,462
Total Gain (Loss) on Risk Management
	Contracts	$	1,677	$	1,536	$	2,011	$	4,326	$	2,533

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(1,149)	$	11,437	$	11,978	$	163	$	398
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(7,835)		(9,204)		(14,104)		(5,304)		(6,274)
Regulatory Liabilities (a)			7,314		(889)		-		(19)		(13)
Total Gain (Loss) on Risk Management
	Contracts	$	(1,670)	$	1,344	$	(2,126)	$	(5,160)	$	(5,889)

Amount of Gain (Loss) Recognized on
Risk Management Contracts
Year Ended December 31, 2011

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	2,843	$	12,786	$	27,292	$	297	$	547
Sales to AEP Affiliates			154		92		196		3		4
Fuel and Other Consumables Used for
	Electric Generation		-		-		(2)		-		-
Regulatory Assets (a)			373		(1,470)		(17,928)		(1,421)		(1,709)
Regulatory Liabilities (a)			2,552		(5,178)		(105)		708		(118)
Total Gain (Loss) on Risk Management
	Contracts	$	5,922	$	6,230	$	9,453	$	(413)	$	(1,276)

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

Collateral Required Under Various Triggering Events

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2013

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	363	$	-	$	287	$	-	$	94	$	3,090
I&M		216		-		194		-		46		(15,976)
OPCo		162		-		-		-		105		6,974
PSO		84		-		-		-		57		5,701
SWEPCo		97		-		-		-		66		(13,304)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	94	$	(806)		12
I&M		46		(1,568)		12
OPCo		105		1,363		12
PSO		57		759		12
SWEPCo		66		(2,267)		12

Impact of Cash Flow Hedges on the Registrant Subsidiaries’
Balance Sheets
December 31, 2012

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	302	$	-	$	1,355	$	-	$	(644)	$	2,077
I&M		200		-		931		19,524		(446)		(19,647)
OPCo		416		-		1,903		-		(912)		8,095
PSO		25		-		-		-		21		6,460
SWEPCo		24		-		-		-		22		(15,571)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
			Interest Rate
			and Foreign
Company	Commodity		Currency
	(in thousands)
APCo	$	(507)	$	(1,013)
I&M		(355)		(1,600)
OPCo		(720)		1,359
PSO		21		759
SWEPCo		22		(2,267)

(a) Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on the balance sheets.

	December 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	575	$	2,747	$	2,539
I&M		390		1,863		1,722
OPCo		349		-		-
PSO		-		2,930		410
SWEPCo		-		713		519

	December 31, 2012
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	2,159	$	3,699	$	3,510
I&M		1,483		2,540		2,411
OPCo		3,034		5,198		4,933
PSO		-		1,509		1,429
SWEPCo		-		1,778		1,683