Other Temporary Investments



	September 30, 2015				December 31, 2014
	Book Value (a)		Fair Value		Book Value (a)		Fair Value
	(in millions)
Long-term Debt	$	19,507	$	21,257	$	18,684	$	21,075


(a)	Amounts include debt related to AEPRO that have been classified as Liabilities Held for Sale on the condensed balance sheets. See "AEPRO (AEP River Operations Segment)" section of Note 6 for additional information.



	September 30, 2015
Other Temporary Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Restricted Cash (a)	$	201	$	—	$	—	$	201
Fixed Income Securities – Mutual Funds	90		—		—		90
Equity Securities – Mutual Funds	14		10		—		24
Total Other Temporary Investments	$	305	$	10	$	—	$	315

	December 31, 2014
Other Temporary Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Restricted Cash (a)	$	280	$	—	$	—	$	280
Fixed Income Securities – Mutual Funds	81		—		—		81
Equity Securities – Mutual Funds	13		12		—		25
Total Other Temporary Investments	$	374	$	12	$	—	$	386


(a)	Primarily represents amounts held for the repayment of debt.

Debt and Equity Securities Within Other Temporary Investments



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in millions)
Proceeds from Investment Sales	$	—	$	—	$	—	$	—
Purchases of Investments	10		—		10		1
Gross Realized Gains on Investment Sales	—		—		—		—
Gross Realized Losses on Investment Sales	—		—		—		—

Securities Activity Within the Decommissioning and SNF Trusts



	September 30, 2015							December 31, 2014
	Fair Value		Gross Unrealized Gains		Other-Than- Temporary Impairments			Fair Value		Gross Unrealized Gains		Other-Than- Temporary Impairments
	(in millions)
Cash and Cash Equivalents	$	164	$	—	$	—		$	20	$	—	$	—
Fixed Income Securities:
United States Government	704		45		(2		)	697		45		(5		)
Corporate Debt	62		4		(1		)	48		4		(1		)
State and Local Government	50		1		—			208		1		—
Subtotal Fixed Income Securities	816		50		(3		)	953		50		(6		)
Equity Securities – Domestic	1,067		516		(80		)	1,123		599		(79		)
Spent Nuclear Fuel and Decommissioning Trusts	$	2,047	$	566	$	(83	)	$	2,096	$	649	$	(85	)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in millions)
Proceeds from Investment Sales	$	921	$	263	$	1,437	$	746
Purchases of Investments	938		281		1,479		790
Gross Realized Gains on Investment Sales	15		8		34		25
Gross Realized Losses on Investment Sales	13		1		23		10

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts



	Fair Value of Fixed Income Securities
	(in millions)
Within 1 year	$	166
1 year – 5 years	336
5 years – 10 years	140
After 10 years	174
Total	$	816

Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in millions)

Cash and Cash Equivalents (a)	$	12	$	4	$	—	$	162		$	178

Other Temporary Investments
Restricted Cash (a)	189		6		—		6			201
Fixed Income Securities - Mutual Funds	90		—		—		—			90
Equity Securities – Mutual Funds (b)	24		—		—		—			24
Total Other Temporary Investments	303		6		—		6			315

Risk Management Assets
Risk Management Commodity Contracts (c) (d)	17		478		248		(256		)	487
Cash Flow Hedges:
Commodity Hedges (c)	—		10		1		(4		)	7
Fair Value Hedges	—		1		—		1			2
Total Risk Management Assets	17		489		249		(259		)	496

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)	157		—		—		7			164
Fixed Income Securities:
United States Government	—		704		—		—			704
Corporate Debt	—		62		—		—			62
State and Local Government	—		50		—		—			50
Subtotal Fixed Income Securities	—		816		—		—			816
Equity Securities – Domestic (b)	1,067		—		—		—			1,067
Total Spent Nuclear Fuel and Decommissioning Trusts	1,224		816		—		7			2,047

Total Assets	$	1,556	$	1,315	$	249	$	(84	)	$	3,036

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (c) (d)	$	33	$	440	$	76	$	(299	)	$	250
Cash Flow Hedges:
Commodity Hedges (c)	—		22		6		(4		)	24
Interest Rate/Foreign Currency Hedges	—		1		—		—			1
Fair Value Hedges	—		—		—		1			1
Total Risk Management Liabilities	$	33	$	463	$	82	$	(302	)	$	276

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in millions)

Cash and Cash Equivalents (a)	$	17	$	1	$	—	$	145		$	163

Other Temporary Investments
Restricted Cash (a)	234		9		—		37			280
Fixed Income Securities - Mutual Funds	81		—		—		—			81
Equity Securities – Mutual Funds (b)	25		—		—		—			25
Total Other Temporary Investments	340		9		—		37			386

Risk Management Assets
Risk Management Commodity Contracts (c) (f)	37		528		190		(302		)	453
Cash Flow Hedges:
Commodity Hedges (c)	—		32		—		(16		)	16
Fair Value Hedges	—		1		—		2			3
Total Risk Management Assets	37		561		190		(316		)	472

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (e)	9		—		—		11			20
Fixed Income Securities:
United States Government	—		697		—		—			697
Corporate Debt	—		48		—		—			48
State and Local Government	—		208		—		—			208
Subtotal Fixed Income Securities	—		953		—		—			953
Equity Securities – Domestic (b)	1,123		—		—		—			1,123
Total Spent Nuclear Fuel and Decommissioning Trusts	1,132		953		—		11			2,096

Total Assets	$	1,526	$	1,524	$	190	$	(123	)	$	3,117

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (c) (f)	$	65	$	432	$	36	$	(334	)	$	199
Cash Flow Hedges:
Commodity Hedges (c)	—		27		3		(16		)	14
Interest Rate/Foreign Currency Hedges	—		1		—		—			1
Fair Value Hedges	—		7		—		2			9
Total Risk Management Liabilities	$	65	$	467	$	39	$	(348	)	$	223


(a)	Amounts in ''Other'' column primarily represent cash deposits in bank accounts with financial institutions or with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.


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


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

(d)

The September 30, 2015 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures ($4) million in 2015 and ($12) million in periods 2016-2018; Level 2 matures $5 million in 2015, $28 million in periods 2016-2018, $3 million in periods 2019-2020 and $2 million in periods 2021-2032; Level 3 matures $2 million in 2015, $63 million in periods 2016-2018, $25 million in periods 2019-2020 and $82 million in periods 2021-2032. Risk management commodity contracts are substantially comprised of power contracts.


(e)	Amounts in ''Other'' column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.

(f)

The December 31, 2014 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $(18) million in 2015 and ($10) million in periods 2016-2018; Level 2 matures $31 million in 2015, $52 million in periods 2016-2018, $12 million in periods 2019-2020 and $1 million in periods 2021-2030; Level 3 matures $50 million in 2015, $29 million in periods 2016-2018, $9 million in periods 2019-2020 and $66 million in periods 2021-2030. Risk management commodity contracts are substantially comprised of power contracts.

Changes in Fair Value of Net Trading Derivatives and Other Investments



Three Months Ended September 30, 2015	Net Risk Management Assets (Liabilities)
	(in millions)
Balance as of June 30, 2015	$	203
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	11
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	6
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income	(2		)
Purchases, Issuances and Settlements (c)	(29		)
Transfers into Level 3 (d) (e)	8
Transfers out of Level 3 (e) (f)	(5		)
Changes in Fair Value Allocated to Regulated Jurisdictions (g)	(25		)
Balance as of September 30, 2015	$	167



Three Months Ended September 30, 2014	Net Risk Management Assets (Liabilities)
	(in millions)
Balance as of June 30, 2014	$	132
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	(9		)
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	10
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income	(3		)
Purchases, Issuances and Settlements (c)	(5		)
Transfers into Level 3 (d) (e)	(9		)
Transfers out of Level 3 (e) (f)	(1		)
Changes in Fair Value Allocated to Regulated Jurisdictions (g)	14
Balance as of September 30, 2014	$	129



Nine Months Ended September 30, 2015	Net Risk Management Assets (Liabilities)
	(in millions)
Balance as of December 31, 2014	$	151
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	14
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	54
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income	(4		)
Purchases, Issuances and Settlements (c)	(60		)
Transfers into Level 3 (d) (e)	28
Transfers out of Level 3 (e) (f)	(17		)
Changes in Fair Value Allocated to Regulated Jurisdictions (g)	1
Balance as of September 30, 2015	$	167



Nine Months Ended September 30, 2014	Net Risk Management Assets (Liabilities)
	(in millions)
Balance as of December 31, 2013	$	117
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)	91
Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets) Relating to Assets Still Held at the Reporting Date (a)	(3		)
Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income	12
Purchases, Issuances and Settlements (c)	(103		)
Transfers into Level 3 (d) (e)	(9		)
Transfers out of Level 3 (e) (f)	(8		)
Changes in Fair Value Allocated to Regulated Jurisdictions (g)	32
Balance as of September 30, 2014	$	129


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


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


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


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


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


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


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

Significant Unobservable Inputs

September 30, 2015



						Significant	Input/Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input	Low			High		Average
	(in millions)
Energy Contracts	$	226	$	79	Discounted Cash Flow	Forward Market Price (a)	$	13.03		$	165.93	$	36.37
						Counterparty Credit Risk (b)	481
FTRs	23		3		Discounted Cash Flow	Forward Market Price (a)	(10.67		)	11.60		1.31
Total	$	249	$	82

Significant Unobservable Inputs

December 31, 2014



						Significant	Input/Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input	Low			High		Average
	(in millions)
Energy Contracts	$	157	$	37	Discounted Cash Flow	Forward Market Price (a)	$	11.37		$	159.92	$	57.18
						Counterparty Credit Risk (b)	303
FTRs	33		2		Discounted Cash Flow	Forward Market Price (a)	(14.63		)	20.02		0.96
Total	$	190	$	39


(a)	Represents market prices in dollars per MWh.


(b)	Represents average price of credit default swaps used to calculate counterparty credit risk, reported in basis points.

Appalachian Power Co [Member]

September 30, 2015



Significant Unobservable Input	Position	Change in Input	Impact on Fair Value Measurement
Forward Market Price	Buy	Increase (Decrease)	Higher (Lower)
Forward Market Price	Sell	Increase (Decrease)	Lower (Higher)
Counterparty Credit Risk	Loss	Increase (Decrease)	Higher (Lower)
Counterparty Credit Risk	Gain	Increase (Decrease)	Lower (Higher)



	September 30, 2015				December 31, 2014
Company	Book Value		Fair Value		Book Value		Fair Value
	(in thousands)
APCo	$	3,955,295	$	4,460,140	$	3,980,274	$	4,711,210
I&M	2,060,651		2,241,930		2,027,397		2,255,124
OPCo	2,166,050		2,502,105		2,297,123		2,709,452
PSO	1,290,973		1,424,300		1,041,036		1,216,205
SWEPCo	2,283,966		2,446,716		2,140,437		2,402,639

Securities Activity Within the Decommissioning and SNF Trusts



	September 30, 2015							December 31, 2014
			Gross		Other-Than-					Gross		Other-Than-
	Fair		Unrealized		Temporary			Fair		Unrealized		Temporary
	Value		Gains		Impairments			Value		Gains		Impairments
	(in thousands)
Cash and Cash Equivalents	$	164,353	$	—	$	—		$	19,966	$	—	$	—
Fixed Income Securities:
United States Government	704,344		45,005		(2,291		)	697,042		44,615		(5,016		)
Corporate Debt	62,118		3,682		(1,043		)	47,792		4,523		(1,018		)
State and Local Government	50,018		996		(324		)	208,553		1,206		(319		)
Subtotal Fixed Income Securities	816,480		49,683		(3,658		)	953,387		50,344		(6,353		)
Equity Securities - Domestic	1,066,427		516,206		(80,280		)	1,122,379		598,788		(79,142		)
Spent Nuclear Fuel and Decommissioning Trusts	$	2,047,260	$	565,889	$	(83,938	)	$	2,095,732	$	649,132	$	(85,495	)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in thousands)
Proceeds from Investment Sales	$	921,552	$	263,738	$	1,437,336	$	746,272
Purchases of Investments	938,438		280,626		1,479,149		789,461
Gross Realized Gains on Investment Sales	15,030		7,617		33,840		24,835
Gross Realized Losses on Investment Sales	13,167		1,739		22,823		10,447

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts



	Fair Value of Fixed Income Securities
	(in thousands)
Within 1 year	$	166,336
1 year – 5 years	335,823
5 years – 10 years	140,129
After 10 years	174,192
Total	$	816,480

Fair Value, Assets and Liabilities Measured on Recurring Basis

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	7,436	$	—	$	—	$	57		$	7,493

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	185		12,785		23,743		(7,328		)	29,385

Total Assets:	$	7,621	$	12,785	$	23,743	$	(7,271	)	$	36,878

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	198	$	16,031	$	662	$	(9,016	)	$	7,875

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	15,599	$	—	$	—	$	33		$	15,632

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	206		20,197		17,654		(9,374		)	28,683

Total Assets:	$	15,805	$	20,197	$	17,654	$	(9,341	)	$	44,315

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	227	$	20,339	$	1,912	$	(9,404	)	$	13,074

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	$	126	$	10,347	$	7,795	$	(6,303	)	$	11,965

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	157,409		—		—		6,944			164,353
Fixed Income Securities:
United States Government	—		704,344		—		—			704,344
Corporate Debt	—		62,118		—		—			62,118
State and Local Government	—		50,018		—		—			50,018
Subtotal Fixed Income Securities	—		816,480		—		—			816,480
Equity Securities - Domestic (e)	1,066,427		—		—		—			1,066,427
Total Spent Nuclear Fuel and Decommissioning Trusts	1,223,836		816,480		—		6,944			2,047,260

Total Assets	$	1,223,962	$	826,827	$	7,795	$	641		$	2,059,225

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	135	$	10,945	$	1,419	$	(6,636	)	$	5,863

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	140	$	15,893	$	16,008	$	(6,396	)	$	25,645

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	9,418		—		—		10,548			19,966
Fixed Income Securities:
United States Government	—		697,042		—		—			697,042
Corporate Debt	—		47,792		—		—			47,792
State and Local Government	—		208,553		—		—			208,553
Subtotal Fixed Income Securities	—		953,387		—		—			953,387
Equity Securities - Domestic (e)	1,122,379		—		—		—			1,122,379
Total Spent Nuclear Fuel and Decommissioning Trusts	1,131,797		953,387		—		10,548			2,095,732

Total Assets	$	1,131,937	$	969,280	$	16,008	$	4,152		$	2,121,377

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	154	$	11,440	$	1,304	$	(6,280	)	$	6,618

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other		Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	16,195	$	—	$	—	$	9	$	16,204

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		20,719		2,546		23,265

Total Assets	$	16,195	$	—	$	20,719	$	2,555	$	39,469

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	639	$	5,009	$	2,046	$	7,694

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	408	$	—	$	—	$	28,288		$	28,696

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		52,343		1			52,344

Total Assets	$	408	$	—	$	52,343	$	28,289		$	81,040

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	1,116	$	3,941	$	(101	)	$	4,956

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	1,166	$	(131	)	$	1,035

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	358	$	131	$	(411	)	$	78

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	360	$	(360	)	$	—

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	595	$	737	$	(414	)	$	918

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	11,688	$	—	$	—	$	2,570		$	14,258

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		1,442		(162		)	1,280

Total Assets	$	11,688	$	—	$	1,442	$	2,408		$	15,538

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	2,378	$	162	$	(481	)	$	2,059

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	12,660	$	—	$	—	$	1,696		$	14,356

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		31		439		(439		)	31

Total Assets	$	12,660	$	31	$	439	$	1,257		$	14,387

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	684	$	899	$	(501	)	$	1,082


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


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


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


(d)	Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.


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

Changes in Fair Value of Net Trading Derivatives and Other Investments



Three Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2015	$	33,836		$	11,844		$	37,657		$	1,699		$	2,039
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	5,065			885			(28		)	(280		)	2,366
Purchases, Issuances and Settlements (d)	(13,965		)	(3,604		)	348			(176		)	(2,912		)
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	(1,855		)	(2,749		)	(22,267		)	(208		)	(213		)
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Three Months Ended September 30, 2014	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2014	$	18,394		$	12,923		$	9,300		$	(3	)	$	(3	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	(5,629		)	(3,832		)	(3,639		)	2			2
Purchases, Issuances and Settlements (d)	(1,560		)	(1,244		)	(637		)	—			—
Transfers into Level 3 (e) (f)	(6		)	(4		)	—			—			—
Transfers out of Level 3 (f) (g)	(30		)	(20		)	—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	4,843			4,319			2,865			335			409
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334		$	408



Nine Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of December 31, 2014	$	15,742		$	14,704		$	48,402		$	(377	)	$	(460	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	1,757			(193		)	1,182			(176		)	9,187
Purchases, Issuances and Settlements (d)	(16,124		)	(12,807		)	(7,906		)	553			(8,727		)
Transfers out of Level 3 (f) (g)	1,167			792			—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	20,539			3,880			(25,968		)	1,035			1,280
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Nine Months Ended September 30, 2014	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Balance as of December 31, 2013	$	10,562		$	7,164		$	2,920		$	—	$	—
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	29,467			18,438			30,768			—		—
Purchases, Issuances and Settlements (d)	(32,213		)	(20,301		)	(33,688		)	—		—
Transfers into Level 3 (e) (f)	(3,648		)	(2,475		)	—			—		—
Transfers out of Level 3 (f) (g)	(32		)	(22		)	—			—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	11,876			9,338			7,889			334		408
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334	$	408


(a)	Includes both affiliated and nonaffiliated transactions.


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


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


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


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


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


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


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

Significant Unobservable Inputs

September 30, 2015

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	8,724	$	451	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	15,019		211		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	23,743	$	662

Significant Unobservable Inputs

December 31, 2014

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	5,801	$	1,799	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	11,853		113		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	17,654	$	1,912

Significant Unobservable Inputs

September 30, 2015

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	7,147	$	295	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	648		1,124		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	7,795	$	1,419

Significant Unobservable Inputs

December 31, 2014

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	6,375	$	1,219	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	9,633		85		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	16,008	$	1,304

Significant Unobservable Inputs

September 30, 2015

OPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

Energy Contracts

20,719

5,009

Discounted Cash Flow

Forward Market Price

35.71

165.93

85.99

Significant Unobservable Inputs

December 31, 2014

OPCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	45,101	$	3,941	Discounted Cash Flow	Forward Market Price	$	48.25		$	159.92	$	84.04
FTRs	7,242		—		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	52,343	$	3,941

Significant Unobservable Inputs

September 30, 2015

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,166

131

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

360

737

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01

Significant Unobservable Inputs

September 30, 2015

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,442

162

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

439

899

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01


(a)	Represents market prices in dollars per MWh.

Indiana Michigan Power Co [Member]

September 30, 2015



Significant Unobservable Input	Position	Change in Input	Impact on Fair Value Measurement
Forward Market Price	Buy	Increase (Decrease)	Higher (Lower)
Forward Market Price	Sell	Increase (Decrease)	Lower (Higher)



	September 30, 2015				December 31, 2014
Company	Book Value		Fair Value		Book Value		Fair Value
	(in thousands)
APCo	$	3,955,295	$	4,460,140	$	3,980,274	$	4,711,210
I&M	2,060,651		2,241,930		2,027,397		2,255,124
OPCo	2,166,050		2,502,105		2,297,123		2,709,452
PSO	1,290,973		1,424,300		1,041,036		1,216,205
SWEPCo	2,283,966		2,446,716		2,140,437		2,402,639

Securities Activity Within the Decommissioning and SNF Trusts



	September 30, 2015							December 31, 2014
			Gross		Other-Than-					Gross		Other-Than-
	Fair		Unrealized		Temporary			Fair		Unrealized		Temporary
	Value		Gains		Impairments			Value		Gains		Impairments
	(in thousands)
Cash and Cash Equivalents	$	164,353	$	—	$	—		$	19,966	$	—	$	—
Fixed Income Securities:
United States Government	704,344		45,005		(2,291		)	697,042		44,615		(5,016		)
Corporate Debt	62,118		3,682		(1,043		)	47,792		4,523		(1,018		)
State and Local Government	50,018		996		(324		)	208,553		1,206		(319		)
Subtotal Fixed Income Securities	816,480		49,683		(3,658		)	953,387		50,344		(6,353		)
Equity Securities - Domestic	1,066,427		516,206		(80,280		)	1,122,379		598,788		(79,142		)
Spent Nuclear Fuel and Decommissioning Trusts	$	2,047,260	$	565,889	$	(83,938	)	$	2,095,732	$	649,132	$	(85,495	)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in thousands)
Proceeds from Investment Sales	$	921,552	$	263,738	$	1,437,336	$	746,272
Purchases of Investments	938,438		280,626		1,479,149		789,461
Gross Realized Gains on Investment Sales	15,030		7,617		33,840		24,835
Gross Realized Losses on Investment Sales	13,167		1,739		22,823		10,447

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts



	Fair Value of Fixed Income Securities
	(in thousands)
Within 1 year	$	166,336
1 year – 5 years	335,823
5 years – 10 years	140,129
After 10 years	174,192
Total	$	816,480

Fair Value, Assets and Liabilities Measured on Recurring Basis

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	7,436	$	—	$	—	$	57		$	7,493

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	185		12,785		23,743		(7,328		)	29,385

Total Assets:	$	7,621	$	12,785	$	23,743	$	(7,271	)	$	36,878

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	198	$	16,031	$	662	$	(9,016	)	$	7,875

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	15,599	$	—	$	—	$	33		$	15,632

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	206		20,197		17,654		(9,374		)	28,683

Total Assets:	$	15,805	$	20,197	$	17,654	$	(9,341	)	$	44,315

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	227	$	20,339	$	1,912	$	(9,404	)	$	13,074

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	$	126	$	10,347	$	7,795	$	(6,303	)	$	11,965

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	157,409		—		—		6,944			164,353
Fixed Income Securities:
United States Government	—		704,344		—		—			704,344
Corporate Debt	—		62,118		—		—			62,118
State and Local Government	—		50,018		—		—			50,018
Subtotal Fixed Income Securities	—		816,480		—		—			816,480
Equity Securities - Domestic (e)	1,066,427		—		—		—			1,066,427
Total Spent Nuclear Fuel and Decommissioning Trusts	1,223,836		816,480		—		6,944			2,047,260

Total Assets	$	1,223,962	$	826,827	$	7,795	$	641		$	2,059,225

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	135	$	10,945	$	1,419	$	(6,636	)	$	5,863

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	140	$	15,893	$	16,008	$	(6,396	)	$	25,645

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	9,418		—		—		10,548			19,966
Fixed Income Securities:
United States Government	—		697,042		—		—			697,042
Corporate Debt	—		47,792		—		—			47,792
State and Local Government	—		208,553		—		—			208,553
Subtotal Fixed Income Securities	—		953,387		—		—			953,387
Equity Securities - Domestic (e)	1,122,379		—		—		—			1,122,379
Total Spent Nuclear Fuel and Decommissioning Trusts	1,131,797		953,387		—		10,548			2,095,732

Total Assets	$	1,131,937	$	969,280	$	16,008	$	4,152		$	2,121,377

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	154	$	11,440	$	1,304	$	(6,280	)	$	6,618

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other		Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	16,195	$	—	$	—	$	9	$	16,204

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		20,719		2,546		23,265

Total Assets	$	16,195	$	—	$	20,719	$	2,555	$	39,469

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	639	$	5,009	$	2,046	$	7,694

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	408	$	—	$	—	$	28,288		$	28,696

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		52,343		1			52,344

Total Assets	$	408	$	—	$	52,343	$	28,289		$	81,040

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	1,116	$	3,941	$	(101	)	$	4,956

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	1,166	$	(131	)	$	1,035

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	358	$	131	$	(411	)	$	78

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	360	$	(360	)	$	—

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	595	$	737	$	(414	)	$	918

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	11,688	$	—	$	—	$	2,570		$	14,258

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		1,442		(162		)	1,280

Total Assets	$	11,688	$	—	$	1,442	$	2,408		$	15,538

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	2,378	$	162	$	(481	)	$	2,059

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	12,660	$	—	$	—	$	1,696		$	14,356

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		31		439		(439		)	31

Total Assets	$	12,660	$	31	$	439	$	1,257		$	14,387

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	684	$	899	$	(501	)	$	1,082


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


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


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


(d)	Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.


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

Changes in Fair Value of Net Trading Derivatives and Other Investments



Three Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2015	$	33,836		$	11,844		$	37,657		$	1,699		$	2,039
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	5,065			885			(28		)	(280		)	2,366
Purchases, Issuances and Settlements (d)	(13,965		)	(3,604		)	348			(176		)	(2,912		)
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	(1,855		)	(2,749		)	(22,267		)	(208		)	(213		)
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Three Months Ended September 30, 2014	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2014	$	18,394		$	12,923		$	9,300		$	(3	)	$	(3	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	(5,629		)	(3,832		)	(3,639		)	2			2
Purchases, Issuances and Settlements (d)	(1,560		)	(1,244		)	(637		)	—			—
Transfers into Level 3 (e) (f)	(6		)	(4		)	—			—			—
Transfers out of Level 3 (f) (g)	(30		)	(20		)	—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	4,843			4,319			2,865			335			409
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334		$	408



Nine Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of December 31, 2014	$	15,742		$	14,704		$	48,402		$	(377	)	$	(460	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	1,757			(193		)	1,182			(176		)	9,187
Purchases, Issuances and Settlements (d)	(16,124		)	(12,807		)	(7,906		)	553			(8,727		)
Transfers out of Level 3 (f) (g)	1,167			792			—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	20,539			3,880			(25,968		)	1,035			1,280
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Nine Months Ended September 30, 2014	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Balance as of December 31, 2013	$	10,562		$	7,164		$	2,920		$	—	$	—
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	29,467			18,438			30,768			—		—
Purchases, Issuances and Settlements (d)	(32,213		)	(20,301		)	(33,688		)	—		—
Transfers into Level 3 (e) (f)	(3,648		)	(2,475		)	—			—		—
Transfers out of Level 3 (f) (g)	(32		)	(22		)	—			—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	11,876			9,338			7,889			334		408
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334	$	408


(a)	Includes both affiliated and nonaffiliated transactions.


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


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


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


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


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


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


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

Significant Unobservable Inputs

September 30, 2015

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	8,724	$	451	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	15,019		211		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	23,743	$	662

Significant Unobservable Inputs

December 31, 2014

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	5,801	$	1,799	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	11,853		113		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	17,654	$	1,912

Significant Unobservable Inputs

September 30, 2015

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	7,147	$	295	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	648		1,124		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	7,795	$	1,419

Significant Unobservable Inputs

December 31, 2014

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	6,375	$	1,219	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	9,633		85		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	16,008	$	1,304

Significant Unobservable Inputs

September 30, 2015

OPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

Energy Contracts

20,719

5,009

Discounted Cash Flow

Forward Market Price

35.71

165.93

85.99

Significant Unobservable Inputs

December 31, 2014

OPCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	45,101	$	3,941	Discounted Cash Flow	Forward Market Price	$	48.25		$	159.92	$	84.04
FTRs	7,242		—		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	52,343	$	3,941

Significant Unobservable Inputs

September 30, 2015

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,166

131

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

360

737

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01

Significant Unobservable Inputs

September 30, 2015

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,442

162

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

439

899

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01


(a)	Represents market prices in dollars per MWh.

September 30, 2015



Significant Unobservable Input	Position	Change in Input	Impact on Fair Value Measurement
Forward Market Price	Buy	Increase (Decrease)	Higher (Lower)
Forward Market Price	Sell	Increase (Decrease)	Lower (Higher)

Ohio Power Co [Member]



	September 30, 2015				December 31, 2014
Company	Book Value		Fair Value		Book Value		Fair Value
	(in thousands)
APCo	$	3,955,295	$	4,460,140	$	3,980,274	$	4,711,210
I&M	2,060,651		2,241,930		2,027,397		2,255,124
OPCo	2,166,050		2,502,105		2,297,123		2,709,452
PSO	1,290,973		1,424,300		1,041,036		1,216,205
SWEPCo	2,283,966		2,446,716		2,140,437		2,402,639

Securities Activity Within the Decommissioning and SNF Trusts



	September 30, 2015							December 31, 2014
			Gross		Other-Than-					Gross		Other-Than-
	Fair		Unrealized		Temporary			Fair		Unrealized		Temporary
	Value		Gains		Impairments			Value		Gains		Impairments
	(in thousands)
Cash and Cash Equivalents	$	164,353	$	—	$	—		$	19,966	$	—	$	—
Fixed Income Securities:
United States Government	704,344		45,005		(2,291		)	697,042		44,615		(5,016		)
Corporate Debt	62,118		3,682		(1,043		)	47,792		4,523		(1,018		)
State and Local Government	50,018		996		(324		)	208,553		1,206		(319		)
Subtotal Fixed Income Securities	816,480		49,683		(3,658		)	953,387		50,344		(6,353		)
Equity Securities - Domestic	1,066,427		516,206		(80,280		)	1,122,379		598,788		(79,142		)
Spent Nuclear Fuel and Decommissioning Trusts	$	2,047,260	$	565,889	$	(83,938	)	$	2,095,732	$	649,132	$	(85,495	)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in thousands)
Proceeds from Investment Sales	$	921,552	$	263,738	$	1,437,336	$	746,272
Purchases of Investments	938,438		280,626		1,479,149		789,461
Gross Realized Gains on Investment Sales	15,030		7,617		33,840		24,835
Gross Realized Losses on Investment Sales	13,167		1,739		22,823		10,447

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts



	Fair Value of Fixed Income Securities
	(in thousands)
Within 1 year	$	166,336
1 year – 5 years	335,823
5 years – 10 years	140,129
After 10 years	174,192
Total	$	816,480

Fair Value, Assets and Liabilities Measured on Recurring Basis

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	7,436	$	—	$	—	$	57		$	7,493

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	185		12,785		23,743		(7,328		)	29,385

Total Assets:	$	7,621	$	12,785	$	23,743	$	(7,271	)	$	36,878

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	198	$	16,031	$	662	$	(9,016	)	$	7,875

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	15,599	$	—	$	—	$	33		$	15,632

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	206		20,197		17,654		(9,374		)	28,683

Total Assets:	$	15,805	$	20,197	$	17,654	$	(9,341	)	$	44,315

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	227	$	20,339	$	1,912	$	(9,404	)	$	13,074

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	$	126	$	10,347	$	7,795	$	(6,303	)	$	11,965

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	157,409		—		—		6,944			164,353
Fixed Income Securities:
United States Government	—		704,344		—		—			704,344
Corporate Debt	—		62,118		—		—			62,118
State and Local Government	—		50,018		—		—			50,018
Subtotal Fixed Income Securities	—		816,480		—		—			816,480
Equity Securities - Domestic (e)	1,066,427		—		—		—			1,066,427
Total Spent Nuclear Fuel and Decommissioning Trusts	1,223,836		816,480		—		6,944			2,047,260

Total Assets	$	1,223,962	$	826,827	$	7,795	$	641		$	2,059,225

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	135	$	10,945	$	1,419	$	(6,636	)	$	5,863

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	140	$	15,893	$	16,008	$	(6,396	)	$	25,645

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	9,418		—		—		10,548			19,966
Fixed Income Securities:
United States Government	—		697,042		—		—			697,042
Corporate Debt	—		47,792		—		—			47,792
State and Local Government	—		208,553		—		—			208,553
Subtotal Fixed Income Securities	—		953,387		—		—			953,387
Equity Securities - Domestic (e)	1,122,379		—		—		—			1,122,379
Total Spent Nuclear Fuel and Decommissioning Trusts	1,131,797		953,387		—		10,548			2,095,732

Total Assets	$	1,131,937	$	969,280	$	16,008	$	4,152		$	2,121,377

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	154	$	11,440	$	1,304	$	(6,280	)	$	6,618

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other		Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	16,195	$	—	$	—	$	9	$	16,204

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		20,719		2,546		23,265

Total Assets	$	16,195	$	—	$	20,719	$	2,555	$	39,469

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	639	$	5,009	$	2,046	$	7,694

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	408	$	—	$	—	$	28,288		$	28,696

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		52,343		1			52,344

Total Assets	$	408	$	—	$	52,343	$	28,289		$	81,040

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	1,116	$	3,941	$	(101	)	$	4,956

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	1,166	$	(131	)	$	1,035

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	358	$	131	$	(411	)	$	78

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	360	$	(360	)	$	—

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	595	$	737	$	(414	)	$	918

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	11,688	$	—	$	—	$	2,570		$	14,258

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		1,442		(162		)	1,280

Total Assets	$	11,688	$	—	$	1,442	$	2,408		$	15,538

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	2,378	$	162	$	(481	)	$	2,059

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	12,660	$	—	$	—	$	1,696		$	14,356

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		31		439		(439		)	31

Total Assets	$	12,660	$	31	$	439	$	1,257		$	14,387

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	684	$	899	$	(501	)	$	1,082


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


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


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


(d)	Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.


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

Changes in Fair Value of Net Trading Derivatives and Other Investments



Three Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2015	$	33,836		$	11,844		$	37,657		$	1,699		$	2,039
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	5,065			885			(28		)	(280		)	2,366
Purchases, Issuances and Settlements (d)	(13,965		)	(3,604		)	348			(176		)	(2,912		)
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	(1,855		)	(2,749		)	(22,267		)	(208		)	(213		)
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Three Months Ended September 30, 2014	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2014	$	18,394		$	12,923		$	9,300		$	(3	)	$	(3	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	(5,629		)	(3,832		)	(3,639		)	2			2
Purchases, Issuances and Settlements (d)	(1,560		)	(1,244		)	(637		)	—			—
Transfers into Level 3 (e) (f)	(6		)	(4		)	—			—			—
Transfers out of Level 3 (f) (g)	(30		)	(20		)	—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	4,843			4,319			2,865			335			409
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334		$	408



Nine Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of December 31, 2014	$	15,742		$	14,704		$	48,402		$	(377	)	$	(460	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	1,757			(193		)	1,182			(176		)	9,187
Purchases, Issuances and Settlements (d)	(16,124		)	(12,807		)	(7,906		)	553			(8,727		)
Transfers out of Level 3 (f) (g)	1,167			792			—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	20,539			3,880			(25,968		)	1,035			1,280
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Nine Months Ended September 30, 2014	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Balance as of December 31, 2013	$	10,562		$	7,164		$	2,920		$	—	$	—
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	29,467			18,438			30,768			—		—
Purchases, Issuances and Settlements (d)	(32,213		)	(20,301		)	(33,688		)	—		—
Transfers into Level 3 (e) (f)	(3,648		)	(2,475		)	—			—		—
Transfers out of Level 3 (f) (g)	(32		)	(22		)	—			—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	11,876			9,338			7,889			334		408
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334	$	408


(a)	Includes both affiliated and nonaffiliated transactions.


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


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


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


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


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


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


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

Significant Unobservable Inputs

September 30, 2015

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	8,724	$	451	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	15,019		211		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	23,743	$	662

Significant Unobservable Inputs

December 31, 2014

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	5,801	$	1,799	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	11,853		113		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	17,654	$	1,912

Significant Unobservable Inputs

September 30, 2015

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	7,147	$	295	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	648		1,124		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	7,795	$	1,419

Significant Unobservable Inputs

December 31, 2014

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	6,375	$	1,219	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	9,633		85		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	16,008	$	1,304

Significant Unobservable Inputs

September 30, 2015

OPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

Energy Contracts

20,719

5,009

Discounted Cash Flow

Forward Market Price

35.71

165.93

85.99

Significant Unobservable Inputs

December 31, 2014

OPCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	45,101	$	3,941	Discounted Cash Flow	Forward Market Price	$	48.25		$	159.92	$	84.04
FTRs	7,242		—		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	52,343	$	3,941

Significant Unobservable Inputs

September 30, 2015

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,166

131

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

360

737

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01

Significant Unobservable Inputs

September 30, 2015

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,442

162

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

439

899

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01


(a)	Represents market prices in dollars per MWh.

Public Service Co Of Oklahoma [Member]

September 30, 2015



Significant Unobservable Input	Position	Change in Input	Impact on Fair Value Measurement
Forward Market Price	Buy	Increase (Decrease)	Higher (Lower)
Forward Market Price	Sell	Increase (Decrease)	Lower (Higher)



	September 30, 2015				December 31, 2014
Company	Book Value		Fair Value		Book Value		Fair Value
	(in thousands)
APCo	$	3,955,295	$	4,460,140	$	3,980,274	$	4,711,210
I&M	2,060,651		2,241,930		2,027,397		2,255,124
OPCo	2,166,050		2,502,105		2,297,123		2,709,452
PSO	1,290,973		1,424,300		1,041,036		1,216,205
SWEPCo	2,283,966		2,446,716		2,140,437		2,402,639

Securities Activity Within the Decommissioning and SNF Trusts



	September 30, 2015							December 31, 2014
			Gross		Other-Than-					Gross		Other-Than-
	Fair		Unrealized		Temporary			Fair		Unrealized		Temporary
	Value		Gains		Impairments			Value		Gains		Impairments
	(in thousands)
Cash and Cash Equivalents	$	164,353	$	—	$	—		$	19,966	$	—	$	—
Fixed Income Securities:
United States Government	704,344		45,005		(2,291		)	697,042		44,615		(5,016		)
Corporate Debt	62,118		3,682		(1,043		)	47,792		4,523		(1,018		)
State and Local Government	50,018		996		(324		)	208,553		1,206		(319		)
Subtotal Fixed Income Securities	816,480		49,683		(3,658		)	953,387		50,344		(6,353		)
Equity Securities - Domestic	1,066,427		516,206		(80,280		)	1,122,379		598,788		(79,142		)
Spent Nuclear Fuel and Decommissioning Trusts	$	2,047,260	$	565,889	$	(83,938	)	$	2,095,732	$	649,132	$	(85,495	)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in thousands)
Proceeds from Investment Sales	$	921,552	$	263,738	$	1,437,336	$	746,272
Purchases of Investments	938,438		280,626		1,479,149		789,461
Gross Realized Gains on Investment Sales	15,030		7,617		33,840		24,835
Gross Realized Losses on Investment Sales	13,167		1,739		22,823		10,447

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts



	Fair Value of Fixed Income Securities
	(in thousands)
Within 1 year	$	166,336
1 year – 5 years	335,823
5 years – 10 years	140,129
After 10 years	174,192
Total	$	816,480

Fair Value, Assets and Liabilities Measured on Recurring Basis

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	7,436	$	—	$	—	$	57		$	7,493

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	185		12,785		23,743		(7,328		)	29,385

Total Assets:	$	7,621	$	12,785	$	23,743	$	(7,271	)	$	36,878

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	198	$	16,031	$	662	$	(9,016	)	$	7,875

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	15,599	$	—	$	—	$	33		$	15,632

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	206		20,197		17,654		(9,374		)	28,683

Total Assets:	$	15,805	$	20,197	$	17,654	$	(9,341	)	$	44,315

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	227	$	20,339	$	1,912	$	(9,404	)	$	13,074

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	$	126	$	10,347	$	7,795	$	(6,303	)	$	11,965

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	157,409		—		—		6,944			164,353
Fixed Income Securities:
United States Government	—		704,344		—		—			704,344
Corporate Debt	—		62,118		—		—			62,118
State and Local Government	—		50,018		—		—			50,018
Subtotal Fixed Income Securities	—		816,480		—		—			816,480
Equity Securities - Domestic (e)	1,066,427		—		—		—			1,066,427
Total Spent Nuclear Fuel and Decommissioning Trusts	1,223,836		816,480		—		6,944			2,047,260

Total Assets	$	1,223,962	$	826,827	$	7,795	$	641		$	2,059,225

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	135	$	10,945	$	1,419	$	(6,636	)	$	5,863

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	140	$	15,893	$	16,008	$	(6,396	)	$	25,645

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	9,418		—		—		10,548			19,966
Fixed Income Securities:
United States Government	—		697,042		—		—			697,042
Corporate Debt	—		47,792		—		—			47,792
State and Local Government	—		208,553		—		—			208,553
Subtotal Fixed Income Securities	—		953,387		—		—			953,387
Equity Securities - Domestic (e)	1,122,379		—		—		—			1,122,379
Total Spent Nuclear Fuel and Decommissioning Trusts	1,131,797		953,387		—		10,548			2,095,732

Total Assets	$	1,131,937	$	969,280	$	16,008	$	4,152		$	2,121,377

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	154	$	11,440	$	1,304	$	(6,280	)	$	6,618

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other		Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	16,195	$	—	$	—	$	9	$	16,204

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		20,719		2,546		23,265

Total Assets	$	16,195	$	—	$	20,719	$	2,555	$	39,469

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	639	$	5,009	$	2,046	$	7,694

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	408	$	—	$	—	$	28,288		$	28,696

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		52,343		1			52,344

Total Assets	$	408	$	—	$	52,343	$	28,289		$	81,040

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	1,116	$	3,941	$	(101	)	$	4,956

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	1,166	$	(131	)	$	1,035

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	358	$	131	$	(411	)	$	78

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	360	$	(360	)	$	—

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	595	$	737	$	(414	)	$	918

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	11,688	$	—	$	—	$	2,570		$	14,258

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		1,442		(162		)	1,280

Total Assets	$	11,688	$	—	$	1,442	$	2,408		$	15,538

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	2,378	$	162	$	(481	)	$	2,059

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	12,660	$	—	$	—	$	1,696		$	14,356

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		31		439		(439		)	31

Total Assets	$	12,660	$	31	$	439	$	1,257		$	14,387

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	684	$	899	$	(501	)	$	1,082


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


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


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


(d)	Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.


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

Changes in Fair Value of Net Trading Derivatives and Other Investments



Three Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2015	$	33,836		$	11,844		$	37,657		$	1,699		$	2,039
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	5,065			885			(28		)	(280		)	2,366
Purchases, Issuances and Settlements (d)	(13,965		)	(3,604		)	348			(176		)	(2,912		)
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	(1,855		)	(2,749		)	(22,267		)	(208		)	(213		)
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Three Months Ended September 30, 2014	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2014	$	18,394		$	12,923		$	9,300		$	(3	)	$	(3	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	(5,629		)	(3,832		)	(3,639		)	2			2
Purchases, Issuances and Settlements (d)	(1,560		)	(1,244		)	(637		)	—			—
Transfers into Level 3 (e) (f)	(6		)	(4		)	—			—			—
Transfers out of Level 3 (f) (g)	(30		)	(20		)	—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	4,843			4,319			2,865			335			409
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334		$	408



Nine Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of December 31, 2014	$	15,742		$	14,704		$	48,402		$	(377	)	$	(460	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	1,757			(193		)	1,182			(176		)	9,187
Purchases, Issuances and Settlements (d)	(16,124		)	(12,807		)	(7,906		)	553			(8,727		)
Transfers out of Level 3 (f) (g)	1,167			792			—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	20,539			3,880			(25,968		)	1,035			1,280
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Nine Months Ended September 30, 2014	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Balance as of December 31, 2013	$	10,562		$	7,164		$	2,920		$	—	$	—
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	29,467			18,438			30,768			—		—
Purchases, Issuances and Settlements (d)	(32,213		)	(20,301		)	(33,688		)	—		—
Transfers into Level 3 (e) (f)	(3,648		)	(2,475		)	—			—		—
Transfers out of Level 3 (f) (g)	(32		)	(22		)	—			—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	11,876			9,338			7,889			334		408
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334	$	408


(a)	Includes both affiliated and nonaffiliated transactions.


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


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


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


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


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


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


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

Significant Unobservable Inputs

September 30, 2015

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	8,724	$	451	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	15,019		211		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	23,743	$	662

Significant Unobservable Inputs

December 31, 2014

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	5,801	$	1,799	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	11,853		113		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	17,654	$	1,912

Significant Unobservable Inputs

September 30, 2015

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	7,147	$	295	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	648		1,124		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	7,795	$	1,419

Significant Unobservable Inputs

December 31, 2014

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	6,375	$	1,219	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	9,633		85		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	16,008	$	1,304

Significant Unobservable Inputs

September 30, 2015

OPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

Energy Contracts

20,719

5,009

Discounted Cash Flow

Forward Market Price

35.71

165.93

85.99

Significant Unobservable Inputs

December 31, 2014

OPCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	45,101	$	3,941	Discounted Cash Flow	Forward Market Price	$	48.25		$	159.92	$	84.04
FTRs	7,242		—		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	52,343	$	3,941

Significant Unobservable Inputs

September 30, 2015

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,166

131

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

360

737

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01

Significant Unobservable Inputs

September 30, 2015

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,442

162

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

439

899

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01


(a)	Represents market prices in dollars per MWh.

Southwestern Electric Power Co [Member]

September 30, 2015



Significant Unobservable Input	Position	Change in Input	Impact on Fair Value Measurement
Forward Market Price	Buy	Increase (Decrease)	Higher (Lower)
Forward Market Price	Sell	Increase (Decrease)	Lower (Higher)



	September 30, 2015				December 31, 2014
Company	Book Value		Fair Value		Book Value		Fair Value
	(in thousands)
APCo	$	3,955,295	$	4,460,140	$	3,980,274	$	4,711,210
I&M	2,060,651		2,241,930		2,027,397		2,255,124
OPCo	2,166,050		2,502,105		2,297,123		2,709,452
PSO	1,290,973		1,424,300		1,041,036		1,216,205
SWEPCo	2,283,966		2,446,716		2,140,437		2,402,639

Securities Activity Within the Decommissioning and SNF Trusts



	September 30, 2015							December 31, 2014
			Gross		Other-Than-					Gross		Other-Than-
	Fair		Unrealized		Temporary			Fair		Unrealized		Temporary
	Value		Gains		Impairments			Value		Gains		Impairments
	(in thousands)
Cash and Cash Equivalents	$	164,353	$	—	$	—		$	19,966	$	—	$	—
Fixed Income Securities:
United States Government	704,344		45,005		(2,291		)	697,042		44,615		(5,016		)
Corporate Debt	62,118		3,682		(1,043		)	47,792		4,523		(1,018		)
State and Local Government	50,018		996		(324		)	208,553		1,206		(319		)
Subtotal Fixed Income Securities	816,480		49,683		(3,658		)	953,387		50,344		(6,353		)
Equity Securities - Domestic	1,066,427		516,206		(80,280		)	1,122,379		598,788		(79,142		)
Spent Nuclear Fuel and Decommissioning Trusts	$	2,047,260	$	565,889	$	(83,938	)	$	2,095,732	$	649,132	$	(85,495	)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in thousands)
Proceeds from Investment Sales	$	921,552	$	263,738	$	1,437,336	$	746,272
Purchases of Investments	938,438		280,626		1,479,149		789,461
Gross Realized Gains on Investment Sales	15,030		7,617		33,840		24,835
Gross Realized Losses on Investment Sales	13,167		1,739		22,823		10,447

Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts



	Fair Value of Fixed Income Securities
	(in thousands)
Within 1 year	$	166,336
1 year – 5 years	335,823
5 years – 10 years	140,129
After 10 years	174,192
Total	$	816,480

Fair Value, Assets and Liabilities Measured on Recurring Basis

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	7,436	$	—	$	—	$	57		$	7,493

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	185		12,785		23,743		(7,328		)	29,385

Total Assets:	$	7,621	$	12,785	$	23,743	$	(7,271	)	$	36,878

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	198	$	16,031	$	662	$	(9,016	)	$	7,875

APCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	15,599	$	—	$	—	$	33		$	15,632

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	206		20,197		17,654		(9,374		)	28,683

Total Assets:	$	15,805	$	20,197	$	17,654	$	(9,341	)	$	44,315

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	227	$	20,339	$	1,912	$	(9,404	)	$	13,074

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated and Affiliated
Risk Management Commodity Contracts (b) (c)	$	126	$	10,347	$	7,795	$	(6,303	)	$	11,965

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	157,409		—		—		6,944			164,353
Fixed Income Securities:
United States Government	—		704,344		—		—			704,344
Corporate Debt	—		62,118		—		—			62,118
State and Local Government	—		50,018		—		—			50,018
Subtotal Fixed Income Securities	—		816,480		—		—			816,480
Equity Securities - Domestic (e)	1,066,427		—		—		—			1,066,427
Total Spent Nuclear Fuel and Decommissioning Trusts	1,223,836		816,480		—		6,944			2,047,260

Total Assets	$	1,223,962	$	826,827	$	7,795	$	641		$	2,059,225

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	135	$	10,945	$	1,419	$	(6,636	)	$	5,863

I&M

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	140	$	15,893	$	16,008	$	(6,396	)	$	25,645

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)	9,418		—		—		10,548			19,966
Fixed Income Securities:
United States Government	—		697,042		—		—			697,042
Corporate Debt	—		47,792		—		—			47,792
State and Local Government	—		208,553		—		—			208,553
Subtotal Fixed Income Securities	—		953,387		—		—			953,387
Equity Securities - Domestic (e)	1,122,379		—		—		—			1,122,379
Total Spent Nuclear Fuel and Decommissioning Trusts	1,131,797		953,387		—		10,548			2,095,732

Total Assets	$	1,131,937	$	969,280	$	16,008	$	4,152		$	2,121,377

Liabilities:

Risk Management Liabilities – Nonaffiliated
Risk Management Commodity Contracts (b) (c)	$	154	$	11,440	$	1,304	$	(6,280	)	$	6,618

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other		Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	16,195	$	—	$	—	$	9	$	16,204

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		20,719		2,546		23,265

Total Assets	$	16,195	$	—	$	20,719	$	2,555	$	39,469

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	639	$	5,009	$	2,046	$	7,694

OPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Restricted Cash for Securitized Funding (a)	$	408	$	—	$	—	$	28,288		$	28,696

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		52,343		1			52,344

Total Assets	$	408	$	—	$	52,343	$	28,289		$	81,040

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	1,116	$	3,941	$	(101	)	$	4,956

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	1,166	$	(131	)	$	1,035

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	358	$	131	$	(411	)	$	78

PSO

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	$	—	$	—	$	360	$	(360	)	$	—

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	595	$	737	$	(414	)	$	918

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

September 30, 2015



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	11,688	$	—	$	—	$	2,570		$	14,258

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		—		1,442		(162		)	1,280

Total Assets	$	11,688	$	—	$	1,442	$	2,408		$	15,538

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	2,378	$	162	$	(481	)	$	2,059

SWEPCo

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2014



	Level 1		Level 2		Level 3		Other			Total
Assets:	(in thousands)

Cash and Cash Equivalents (a)	$	12,660	$	—	$	—	$	1,696		$	14,356

Risk Management Assets
Risk Management Commodity Contracts (b) (c)	—		31		439		(439		)	31

Total Assets	$	12,660	$	31	$	439	$	1,257		$	14,387

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (b) (c)	$	—	$	684	$	899	$	(501	)	$	1,082


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


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


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


(d)	Amounts in “Other” column primarily represent accrued interest receivables from financial institutions. Level 1 amounts primarily represent investments in money market funds.


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

Changes in Fair Value of Net Trading Derivatives and Other Investments



Three Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2015	$	33,836		$	11,844		$	37,657		$	1,699		$	2,039
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	5,065			885			(28		)	(280		)	2,366
Purchases, Issuances and Settlements (d)	(13,965		)	(3,604		)	348			(176		)	(2,912		)
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	(1,855		)	(2,749		)	(22,267		)	(208		)	(213		)
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Three Months Ended September 30, 2014	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of June 30, 2014	$	18,394		$	12,923		$	9,300		$	(3	)	$	(3	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	(5,629		)	(3,832		)	(3,639		)	2			2
Purchases, Issuances and Settlements (d)	(1,560		)	(1,244		)	(637		)	—			—
Transfers into Level 3 (e) (f)	(6		)	(4		)	—			—			—
Transfers out of Level 3 (f) (g)	(30		)	(20		)	—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	4,843			4,319			2,865			335			409
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334		$	408



Nine Months Ended September 30, 2015	APCo (a)			I&M (a)			OPCo			PSO			SWEPCo
	(in thousands)
Balance as of December 31, 2014	$	15,742		$	14,704		$	48,402		$	(377	)	$	(460	)
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	1,757			(193		)	1,182			(176		)	9,187
Purchases, Issuances and Settlements (d)	(16,124		)	(12,807		)	(7,906		)	553			(8,727		)
Transfers out of Level 3 (f) (g)	1,167			792			—			—			—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	20,539			3,880			(25,968		)	1,035			1,280
Balance as of September 30, 2015	$	23,081		$	6,376		$	15,710		$	1,035		$	1,280



Nine Months Ended September 30, 2014	APCo			I&M			OPCo			PSO		SWEPCo
	(in thousands)
Balance as of December 31, 2013	$	10,562		$	7,164		$	2,920		$	—	$	—
Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (b) (c)	29,467			18,438			30,768			—		—
Purchases, Issuances and Settlements (d)	(32,213		)	(20,301		)	(33,688		)	—		—
Transfers into Level 3 (e) (f)	(3,648		)	(2,475		)	—			—		—
Transfers out of Level 3 (f) (g)	(32		)	(22		)	—			—		—
Changes in Fair Value Allocated to Regulated Jurisdictions (h)	11,876			9,338			7,889			334		408
Balance as of September 30, 2014	$	16,012		$	12,142		$	7,889		$	334	$	408


(a)	Includes both affiliated and nonaffiliated transactions.


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


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


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


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


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


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


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

Significant Unobservable Inputs

September 30, 2015

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	8,724	$	451	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	15,019		211		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	23,743	$	662

Significant Unobservable Inputs

December 31, 2014

APCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	5,801	$	1,799	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	11,853		113		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	17,654	$	1,912

Significant Unobservable Inputs

September 30, 2015

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	7,147	$	295	Discounted Cash Flow	Forward Market Price	$	13.03		$	48.17	$	34.76
FTRs	648		1,124		Discounted Cash Flow	Forward Market Price	(5.95		)	11.60		1.53
Total	$	7,795	$	1,419

Significant Unobservable Inputs

December 31, 2014

I&M



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	6,375	$	1,219	Discounted Cash Flow	Forward Market Price	$	13.43		$	123.02	$	52.47
FTRs	9,633		85		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	16,008	$	1,304

Significant Unobservable Inputs

September 30, 2015

OPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

Energy Contracts

20,719

5,009

Discounted Cash Flow

Forward Market Price

35.71

165.93

85.99

Significant Unobservable Inputs

December 31, 2014

OPCo



						Significant	Forward Price Range
	Fair Value				Valuation	Unobservable						Weighted
	Assets		Liabilities		Technique	Input (a)	Low			High		Average
	(in thousands)
Energy Contracts	$	45,101	$	3,941	Discounted Cash Flow	Forward Market Price	$	48.25		$	159.92	$	84.04
FTRs	7,242		—		Discounted Cash Flow	Forward Market Price	(14.63		)	20.02		1.01
Total	$	52,343	$	3,941

Significant Unobservable Inputs

September 30, 2015

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,166

131

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

PSO

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

360

737

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01

Significant Unobservable Inputs

September 30, 2015

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

1,442

162

Discounted Cash Flow

Forward Market Price

(5.95

)

11.60

1.53

Significant Unobservable Inputs

December 31, 2014

SWEPCo

Significant

Forward Price Range

Fair Value

Valuation

Unobservable

Weighted

Assets

Liabilities

Technique

Input (a)

Low

High

Average

(in thousands)

FTRs

439

899

Discounted Cash Flow

Forward Market Price

(14.63

)

20.02

1.01


(a)	Represents market prices in dollars per MWh.