Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2015

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

	Volume
	March 31, 2015		December 31, 2014		Unit of Measure
Primary Risk Exposure	(in millions)
Commodity:
Power	271		334		MWhs
Coal	2		3		Tons
Natural Gas	75		106		MMBtus
Heating Oil and Gasoline	4		6		Gallons
Interest Rate	$	140	$	152	USD
Interest Rate and Foreign Currency	$	814	$	815	USD

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments

March 31, 2015

	Risk Management Contracts		Hedging Contracts						Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)			Interest Rate and Foreign Currency (a)
	(in millions)
Current Risk Management Assets	$	342	$	10		$	3		$	355	$	(217	)	$	138
Long-term Risk Management Assets	453		4			—			457		(92		)	365
Total Assets	795		14			3			812		(309		)	503
Current Risk Management Liabilities	302		12			1			315		(232		)	83
Long-term Risk Management Liabilities	250		10			5			265		(109		)	156
Total Liabilities	552		22			6			580		(341		)	239
Total MTM Derivative Contract Net Assets (Liabilities)	$	243	$	(8	)	$	(3	)	$	232	$	32		$	264
Fair Value of Derivative Instruments
December 31, 2014
	Risk Management Contracts		Hedging Contracts						Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)			Interest Rate and Foreign Currency (a)
	(in millions)
Current Risk Management Assets	$	392	$	30		$	3		$	425	$	(247	)	$	178
Long-term Risk Management Assets	367		3			—			370		(76		)	294
Total Assets	759		33			3			795		(323		)	472
Current Risk Management Liabilities	329		23			1			353		(261		)	92
Long-term Risk Management Liabilities	208		8			9			225		(94		)	131
Total Liabilities	537		31			10			578		(355		)	223
Total MTM Derivative Contract Net Assets (Liabilities)	$	222	$	2		$	(7	)	$	217	$	32		$	249

(a) Derivative instruments within these categories are reported gross.  These instruments are subject to master netting agreements and are presented on the condensed 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2015 and 2014

Location of Gain (Loss)	2015			2014
	(in millions)
Vertically Integrated Utilities Revenues	$	5		$	18
Generation & Marketing Revenues	49			32
Other Operation Expense	(1		)	—
Maintenance Expense	(1		)	—
Purchased Electricity for Resale	3			—
Regulatory Assets (a)	(4		)	—
Regulatory Liabilities (a)	4			89
Total Gain on Risk Management Contracts	$	55		$	139

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

Gain (Loss) on Hedging Instruments

	Three Months Ended
	March 31,
	2015			2014
	(in millions)
Gain on Fair Value Hedging Instruments	$	5		$	2
Loss on Fair Value Portion of Long-term Debt	(5		)	(2		)

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Condensed Balance Sheet
March 31, 2015
	Commodity			Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	4		$	—		$	4
Hedging Liabilities (a)	12			1			13
AOCI Gain (Loss) Net of Tax	(6		)	(18		)	(24		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	(6		)	(2		)	(8		)
Impact of Cash Flow Hedges on the Condensed Balance Sheet
December 31, 2014
	Commodity			Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	16		$	—		$	16
Hedging Liabilities (a)	14			1			15
AOCI Gain (Loss) Net of Tax	1			(19		)	(18		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	4			(2		)	2

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

Collateral Required Under Various Triggering Events

	March 31,		December 31,
	2015		2014
	(in millions)
Fair Value of Contracts with Credit Downgrade Triggers	$	—	$	—
Amount of Collateral AEP Subsidiaries Would Have been Required to Post for Derivative Contracts as well as Derivative and Non-Derivative Contracts Subject to the Same Master Netting Arrangement	—		—
Amount of Collateral AEP Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs	29		36
Amount of Collateral Attributable to Other Contracts (a)	300		281

(a) Represents the amount of collateral AEP subsidiaries would have been required to post for other significant non-derivative contracts including AGR jointly owned plant contracts and various other commodity related contacts.

Liabilities Subject to Cross Default Provisions

	March 31, 2015		December 31, 2014
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements	$	271	$	235
Amount of Cash Collateral Posted	8		9
Additional Settlement Liability if Cross Default Provision is Triggered	203		178

Appalachian Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

March 31, 2015

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	18,442		12,984		11,459		7,283		9,187
Coal	Tons	209		375		—		—		1,125
Natural Gas	MMBtus	366		248		—		—		—
Heating Oil and Gasoline	Gallons	792		379		806		446		508
Interest Rate	USD	$	4,353	$	2,952	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—

Cash Collateral Netting

	March 31, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	153	$	830	$	68	$	98
I&M	89		404		163		47
OPCo	—		804		—		102
PSO	6		435		—		54
SWEPCo	8		499		—		62

Fair Value of Derivative Instruments

APCo

Fair Value of Derivative Instruments

March 31, 2015

	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	19,733	$	—	$	—	$	19,733	$	(7,349	)	$	12,384
Long-term Risk Management Assets	4,747		—		—		4,747		(590		)	4,157
Total Assets	24,480		—		—		24,480		(7,939		)	16,541
Current Risk Management Liabilities	16,627		—		—		16,627		(7,966		)	8,661
Long-term Risk Management Liabilities	2,683		—		—		2,683		(650		)	2,033
Total Liabilities	19,310		—		—		19,310		(8,616		)	10,694
Total MTM Derivative Contract Net Assets (Liabilities)	$	5,170	$	—	$	—	$	5,170	$	677		$	5,847

APCo

Fair Value of Derivative Instruments

December 31, 2014

	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	32,903	$	—	$	—	$	32,903	$	(9,111	)	$	23,792
Long-term Risk Management Assets	5,159		—		—		5,159		(268		)	4,891
Total Assets	38,062		—		—		38,062		(9,379		)	28,683
Current Risk Management Liabilities	20,161		—		—		20,161		(9,144		)	11,017
Long-term Risk Management Liabilities	2,322		—		—		2,322		(265		)	2,057
Total Liabilities	22,483		—		—		22,483		(9,409		)	13,074
Total MTM Derivative Contract Net Assets (Liabilities)	$	15,579	$	—	$	—	$	15,579	$	30		$	15,609

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

(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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2015

Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	644		$	2,239		$	—		$	(11	)	$	(17	)
Other Operation Expense	(118		)	(100		)	(150		)	(122		)	(147		)
Maintenance Expense	(205		)	(80		)	(143		)	(81		)	(93		)
Purchased Electricity for Resale	729			294			—			—			—
Regulatory Assets (a)	717			(560		)	—			(816		)	(3,533		)
Regulatory Liabilities (a)	1,666			(2,991		)	4,673			—			3,959
Total Gain (Loss) on Risk Management Contracts	$	3,433		$	(1,198	)	$	4,380		$	(1,030	)	$	169

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2014

Location of Gain (Loss)	APCo		I&M			OPCo		PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	4,847	$	6,156		$	—	$	64	$	23
Sales to AEP Affiliates	—		(221		)	—		221		—
Regulatory Assets (a)	4		—			—		2		3
Regulatory Liabilities (a)	32,332		18,317			35,099		480		1,330
Total Gain on Risk Management Contracts	$	37,183	$	24,252		$	35,099	$	767	$	1,356

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

March 31, 2015

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,025
I&M	—		—		—		—		—		(14,139		)
OPCo	—		—		—		—		—		5,259
PSO	—		—		—		—		—		4,753
SWEPCo	—		—		—		—		—		(10,469		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	587		0
I&M	—		(1,152		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(1,863		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)

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

Collateral Required Under Various Triggering Events

	March 31, 2015
Company	Fair Value  of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	4,547	$	83
I&M	—		—		3,084		53
OPCo	—		—		—		—
PSO	—		—		—		4,108
SWEPCo	—		—		—		162

	December 31, 2014
Company	Fair Value of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Liabilities Subject to Cross Default Provisions

	March 31, 2015
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	8,051	$	—	$	7,921
I&M	5,461		—		5,373
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

	December 31, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

Indiana Michigan Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

March 31, 2015

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	18,442		12,984		11,459		7,283		9,187
Coal	Tons	209		375		—		—		1,125
Natural Gas	MMBtus	366		248		—		—		—
Heating Oil and Gasoline	Gallons	792		379		806		446		508
Interest Rate	USD	$	4,353	$	2,952	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—

Cash Collateral Netting

	March 31, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	153	$	830	$	68	$	98
I&M	89		404		163		47
OPCo	—		804		—		102
PSO	6		435		—		54
SWEPCo	8		499		—		62

Fair Value of Derivative Instruments

I&M

Fair Value of Derivative Instruments

March 31, 2015

	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	14,701	$	—	$	—	$	14,701	$	(4,747	)	$	9,954
Long-term Risk Management Assets	3,210		—		—		3,210		(390		)	2,820
Total Assets	17,911		—		—		17,911		(5,137		)	12,774
Current Risk Management Liabilities	9,835		—		—		9,835		(5,027		)	4,808
Long-term Risk Management Liabilities	1,803		—		—		1,803		(425		)	1,378
Total Liabilities	11,638		—		—		11,638		(5,452		)	6,186
Total MTM Derivative Contract Net Assets (Liabilities)	$	6,273	$	—	$	—	$	6,273	$	315		$	6,588

I&M

Fair Value of Derivative Instruments

December 31, 2014

	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	28,545	$	—	$	—	$	28,545	$	(6,217	)	$	22,328
Long-term Risk Management Assets	3,499		—		—		3,499		(182		)	3,317
Total Assets	32,044		—		—		32,044		(6,399		)	25,645
Current Risk Management Liabilities	11,326		—		—		11,326		(6,103		)	5,223
Long-term Risk Management Liabilities	1,575		—		—		1,575		(180		)	1,395
Total Liabilities	12,901		—		—		12,901		(6,283		)	6,618
Total MTM Derivative Contract Net Assets (Liabilities)	$	19,143	$	—	$	—	$	19,143	$	(116	)	$	19,027

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

(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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2015

Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	644		$	2,239		$	—		$	(11	)	$	(17	)
Other Operation Expense	(118		)	(100		)	(150		)	(122		)	(147		)
Maintenance Expense	(205		)	(80		)	(143		)	(81		)	(93		)
Purchased Electricity for Resale	729			294			—			—			—
Regulatory Assets (a)	717			(560		)	—			(816		)	(3,533		)
Regulatory Liabilities (a)	1,666			(2,991		)	4,673			—			3,959
Total Gain (Loss) on Risk Management Contracts	$	3,433		$	(1,198	)	$	4,380		$	(1,030	)	$	169

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2014

Location of Gain (Loss)	APCo		I&M			OPCo		PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	4,847	$	6,156		$	—	$	64	$	23
Sales to AEP Affiliates	—		(221		)	—		221		—
Regulatory Assets (a)	4		—			—		2		3
Regulatory Liabilities (a)	32,332		18,317			35,099		480		1,330
Total Gain on Risk Management Contracts	$	37,183	$	24,252		$	35,099	$	767	$	1,356

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

March 31, 2015

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,025
I&M	—		—		—		—		—		(14,139		)
OPCo	—		—		—		—		—		5,259
PSO	—		—		—		—		—		4,753
SWEPCo	—		—		—		—		—		(10,469		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	587		0
I&M	—		(1,152		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(1,863		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)

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

Collateral Required Under Various Triggering Events

	March 31, 2015
Company	Fair Value  of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	4,547	$	83
I&M	—		—		3,084		53
OPCo	—		—		—		—
PSO	—		—		—		4,108
SWEPCo	—		—		—		162

	December 31, 2014
Company	Fair Value of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Liabilities Subject to Cross Default Provisions

	March 31, 2015
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	8,051	$	—	$	7,921
I&M	5,461		—		5,373
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

	December 31, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

Ohio Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

March 31, 2015

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	18,442		12,984		11,459		7,283		9,187
Coal	Tons	209		375		—		—		1,125
Natural Gas	MMBtus	366		248		—		—		—
Heating Oil and Gasoline	Gallons	792		379		806		446		508
Interest Rate	USD	$	4,353	$	2,952	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—

Cash Collateral Netting

	March 31, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	153	$	830	$	68	$	98
I&M	89		404		163		47
OPCo	—		804		—		102
PSO	6		435		—		54
SWEPCo	8		499		—		62

Fair Value of Derivative Instruments

OPCo

Fair Value of Derivative Instruments

March 31, 2015

	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	1,303	$	—	$	—	$	1,303	$	(31	)	$	1,272
Long-term Risk Management Assets	50,422		—		—		50,422		—			50,422
Total Assets	51,725		—		—		51,725		(31		)	51,694
Current Risk Management Liabilities	2,326		—		—		2,326		(835		)	1,491
Long-term Risk Management Liabilities	4,292		—		—		4,292		—			4,292
Total Liabilities	6,618		—		—		6,618		(835		)	5,783
Total MTM Derivative Contract Net Assets (Liabilities)	$	45,107	$	—	$	—	$	45,107	$	804		$	45,911

OPCo

Fair Value of Derivative Instruments

December 31, 2014

	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	7,242	$	—	$	—	$	7,242	$	—		$	7,242
Long-term Risk Management Assets	45,102		—		—		45,102		—			45,102
Total Assets	52,344		—		—		52,344		—			52,344
Current Risk Management Liabilities	2,045		—		—		2,045		(102		)	1,943
Long-term Risk Management Liabilities	3,013		—		—		3,013		—			3,013
Total Liabilities	5,058		—		—		5,058		(102		)	4,956
Total MTM Derivative Contract Net Assets (Liabilities)	$	47,286	$	—	$	—	$	47,286	$	102		$	47,388

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

(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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2015

Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	644		$	2,239		$	—		$	(11	)	$	(17	)
Other Operation Expense	(118		)	(100		)	(150		)	(122		)	(147		)
Maintenance Expense	(205		)	(80		)	(143		)	(81		)	(93		)
Purchased Electricity for Resale	729			294			—			—			—
Regulatory Assets (a)	717			(560		)	—			(816		)	(3,533		)
Regulatory Liabilities (a)	1,666			(2,991		)	4,673			—			3,959
Total Gain (Loss) on Risk Management Contracts	$	3,433		$	(1,198	)	$	4,380		$	(1,030	)	$	169

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2014

Location of Gain (Loss)	APCo		I&M			OPCo		PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	4,847	$	6,156		$	—	$	64	$	23
Sales to AEP Affiliates	—		(221		)	—		221		—
Regulatory Assets (a)	4		—			—		2		3
Regulatory Liabilities (a)	32,332		18,317			35,099		480		1,330
Total Gain on Risk Management Contracts	$	37,183	$	24,252		$	35,099	$	767	$	1,356

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

March 31, 2015

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,025
I&M	—		—		—		—		—		(14,139		)
OPCo	—		—		—		—		—		5,259
PSO	—		—		—		—		—		4,753
SWEPCo	—		—		—		—		—		(10,469		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	587		0
I&M	—		(1,152		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(1,863		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)

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

Collateral Required Under Various Triggering Events

	March 31, 2015
Company	Fair Value  of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	4,547	$	83
I&M	—		—		3,084		53
OPCo	—		—		—		—
PSO	—		—		—		4,108
SWEPCo	—		—		—		162

	December 31, 2014
Company	Fair Value of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Liabilities Subject to Cross Default Provisions

	March 31, 2015
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	8,051	$	—	$	7,921
I&M	5,461		—		5,373
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

	December 31, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

Public Service Co Of Oklahoma [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

March 31, 2015

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	18,442		12,984		11,459		7,283		9,187
Coal	Tons	209		375		—		—		1,125
Natural Gas	MMBtus	366		248		—		—		—
Heating Oil and Gasoline	Gallons	792		379		806		446		508
Interest Rate	USD	$	4,353	$	2,952	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—

Cash Collateral Netting

	March 31, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	153	$	830	$	68	$	98
I&M	89		404		163		47
OPCo	—		804		—		102
PSO	6		435		—		54
SWEPCo	8		499		—		62

Fair Value of Derivative Instruments

PSO

Fair Value of Derivative Instruments

March 31, 2015

	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	150		$	—	$	—	$	150		$	(141	)	$	9
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	150			—		—		150			(141		)	9
Current Risk Management Liabilities	1,272			—		—		1,272			(570		)	702
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,272			—		—		1,272			(570		)	702
Total MTM Derivative Contract Net Assets (Liabilities)	$	(1,122	)	$	—	$	—	$	(1,122	)	$	429		$	(693	)

PSO

Fair Value of Derivative Instruments

December 31, 2014

	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	360		$	—	$	—	$	360		$	(360	)	$	—
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	360			—		—		360			(360		)	—
Current Risk Management Liabilities	1,332			—		—		1,332			(414		)	918
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,332			—		—		1,332			(414		)	918
Total MTM Derivative Contract Net Assets (Liabilities)	$	(972	)	$	—	$	—	$	(972	)	$	54		$	(918	)

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

(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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2015

Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	644		$	2,239		$	—		$	(11	)	$	(17	)
Other Operation Expense	(118		)	(100		)	(150		)	(122		)	(147		)
Maintenance Expense	(205		)	(80		)	(143		)	(81		)	(93		)
Purchased Electricity for Resale	729			294			—			—			—
Regulatory Assets (a)	717			(560		)	—			(816		)	(3,533		)
Regulatory Liabilities (a)	1,666			(2,991		)	4,673			—			3,959
Total Gain (Loss) on Risk Management Contracts	$	3,433		$	(1,198	)	$	4,380		$	(1,030	)	$	169

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2014

Location of Gain (Loss)	APCo		I&M			OPCo		PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	4,847	$	6,156		$	—	$	64	$	23
Sales to AEP Affiliates	—		(221		)	—		221		—
Regulatory Assets (a)	4		—			—		2		3
Regulatory Liabilities (a)	32,332		18,317			35,099		480		1,330
Total Gain on Risk Management Contracts	$	37,183	$	24,252		$	35,099	$	767	$	1,356

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

March 31, 2015

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,025
I&M	—		—		—		—		—		(14,139		)
OPCo	—		—		—		—		—		5,259
PSO	—		—		—		—		—		4,753
SWEPCo	—		—		—		—		—		(10,469		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	587		0
I&M	—		(1,152		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(1,863		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)

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

Collateral Required Under Various Triggering Events

	March 31, 2015
Company	Fair Value  of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	4,547	$	83
I&M	—		—		3,084		53
OPCo	—		—		—		—
PSO	—		—		—		4,108
SWEPCo	—		—		—		162

	December 31, 2014
Company	Fair Value of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Liabilities Subject to Cross Default Provisions

	March 31, 2015
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	8,051	$	—	$	7,921
I&M	5,461		—		5,373
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

	December 31, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

Southwestern Electric Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

March 31, 2015

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	18,442		12,984		11,459		7,283		9,187
Coal	Tons	209		375		—		—		1,125
Natural Gas	MMBtus	366		248		—		—		—
Heating Oil and Gasoline	Gallons	792		379		806		446		508
Interest Rate	USD	$	4,353	$	2,952	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014

Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—

Cash Collateral Netting

	March 31, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	153	$	830	$	68	$	98
I&M	89		404		163		47
OPCo	—		804		—		102
PSO	6		435		—		54
SWEPCo	8		499		—		62

Fair Value of Derivative Instruments

SWEPCo

Fair Value of Derivative Instruments

March 31, 2015

	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	185		$	—	$	—	$	185		$	(174	)	$	11
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	185			—		—		185			(174		)	11
Current Risk Management Liabilities	4,862			—		—		4,862			(665		)	4,197
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	4,862			—		—		4,862			(665		)	4,197
Total MTM Derivative Contract Net Assets (Liabilities)	$	(4,677	)	$	—	$	—	$	(4,677	)	$	491		$	(4,186	)

SWEPCo

Fair Value of Derivative Instruments

December 31, 2014

	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	471		$	—	$	—	$	471		$	(440	)	$	31
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	471			—		—		471			(440		)	31
Current Risk Management Liabilities	1,584			—		—		1,584			(502		)	1,082
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,584			—		—		1,584			(502		)	1,082
Total MTM Derivative Contract Net Assets (Liabilities)	$	(1,113	)	$	—	$	—	$	(1,113	)	$	62		$	(1,051	)

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

(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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2015

Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	644		$	2,239		$	—		$	(11	)	$	(17	)
Other Operation Expense	(118		)	(100		)	(150		)	(122		)	(147		)
Maintenance Expense	(205		)	(80		)	(143		)	(81		)	(93		)
Purchased Electricity for Resale	729			294			—			—			—
Regulatory Assets (a)	717			(560		)	—			(816		)	(3,533		)
Regulatory Liabilities (a)	1,666			(2,991		)	4,673			—			3,959
Total Gain (Loss) on Risk Management Contracts	$	3,433		$	(1,198	)	$	4,380		$	(1,030	)	$	169

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended March 31, 2014

Location of Gain (Loss)	APCo		I&M			OPCo		PSO		SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	4,847	$	6,156		$	—	$	64	$	23
Sales to AEP Affiliates	—		(221		)	—		221		—
Regulatory Assets (a)	4		—			—		2		3
Regulatory Liabilities (a)	32,332		18,317			35,099		480		1,330
Total Gain on Risk Management Contracts	$	37,183	$	24,252		$	35,099	$	767	$	1,356

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

March 31, 2015

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,025
I&M	—		—		—		—		—		(14,139		)
OPCo	—		—		—		—		—		5,259
PSO	—		—		—		—		—		4,753
SWEPCo	—		—		—		—		—		(10,469		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	587		0
I&M	—		(1,152		)	0
OPCo	—		1,372			0
PSO	—		759			0
SWEPCo	—		(1,863		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)

	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)

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

Collateral Required Under Various Triggering Events

	March 31, 2015
Company	Fair Value  of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	4,547	$	83
I&M	—		—		3,084		53
OPCo	—		—		—		—
PSO	—		—		—		4,108
SWEPCo	—		—		—		162

	December 31, 2014
Company	Fair Value of Contracts with Credit Downgrade Triggers		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post for Derivative Contracts as well as Non- Derivative Contracts Subject to the Same Master Netting Arrangement		Amount of Collateral the Registrant Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs		Amount of Collateral Attributable to Other Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Liabilities Subject to Cross Default Provisions

	March 31, 2015
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	8,051	$	—	$	7,921
I&M	5,461		—		5,373
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

	December 31, 2014
Company	Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements		Amount of Cash Collateral Posted		Additional Settlement Liability if Cross Default Provision is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—