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Fair Value Measurements

6 Months Ended

Jun. 30, 2011

Appalachian Power Co [Member]

9. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy and Valuation Techniques

The accounting guidance for “Fair Value Measurements and Disclosures” establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. When quoted market prices are not available, pricing may be completed using comparable securities, dealer values, operating data and general market conditions to determine fair value. Valuation models utilize various inputs such as commodity, interest rate and, to a lesser degree, volatility and credit that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, market corroborated inputs (i.e. inputs derived principally from, or correlated to, observable market data) and other observable inputs for the asset or liability.

For commercial activities, exchange traded derivatives, namely futures contracts, are generally fair valued based on unadjusted quoted prices in active markets and are classified as Level 1. Level 2 inputs primarily consist of OTC broker quotes in moderately active or less active markets, as well as exchange traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1. Management verifies price curves using these broker quotes and classifies these fair values within Level 2 when substantially all of the fair value can be corroborated. Management typically obtains multiple broker quotes, which are non-binding in nature but are based on recent trades in the marketplace. When multiple broker quotes are obtained, the quoted bid and ask prices are averaged. In certain circumstances, a broker quote may be discarded if it is a clear outlier. Management uses a historical correlation analysis between the broker quoted location and the illiquid locations. If the points are highly correlated, these locations are included within Level 2 as well. Certain OTC and bilaterally executed derivative instruments are executed in less active markets with a lower availability of pricing information. Long-dated and illiquid complex or structured transactions and FTRs can introduce the need for internally developed modeling inputs based upon extrapolations and assumptions of observable market data to estimate fair value. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized as Level 3.

Fair Value Measurements of Long-term Debt

The fair values of Long-term Debt are based on quoted market prices, without credit enhancements, for the same or similar issues and the current interest rates offered for instruments with similar maturities. These instruments are not marked-to-market. The estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange.

The book values and fair values of Long-term Debt for the Registrant Subsidiaries as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	June 30, 2011				December 31, 2010
Company	Book Value		Fair Value		Book Value		Fair Value

	(in thousands)
APCo	$	3,725,886	$	4,075,642	$	3,561,141	$	3,878,557
CSPCo		1,438,969		1,581,261		1,438,830		1,571,219
I&M		1,965,094		2,141,768		2,004,226		2,169,520
OPCo		2,614,781		2,855,349		2,729,522		2,945,280
PSO		945,650		1,035,124		971,186		1,040,656
SWEPCo		1,769,646		1,941,357		1,769,520		1,931,516

Fair Value Measurements of Financial Assets and Liabilities

The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries' financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2011 and December 31, 2010. As required by the accounting guidance for “Fair Value Measurements and Disclosures,” financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There have not been any significant changes in management's valuation techniques.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2011
APCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	935	$	230,136	$	16,634	$	(188,100)	$	59,605
Cash Flow Hedges:
	Commodity Hedges (a)		-		4,289		-		(2,596)		1,693
Dedesignated Risk Management Contracts (b)			-		-		-		2,662		2,662
Total Risk Management Assets		$	935	$	234,425	$	16,634	$	(188,034)	$	63,960

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	901	$	211,634	$	11,263	$	(195,489)	$	28,309
Cash Flow Hedges:
	Commodity Hedges (a)		-		3,067		50		(2,596)		521
Total Risk Management Liabilities		$	901	$	214,701	$	11,313	$	(198,085)	$	28,830

Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2010
APCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	1,686	$	330,605	$	13,791	$	(270,012)	$	76,070
Cash Flow Hedges:
	Commodity Hedges (a)		-		2,591		-		(2,258)		333
	Interest Rate/Foreign Currency Hedges		-		11,888		-		-		11,888
Dedesignated Risk Management Contracts (b)			-		-		-		3,371		3,371
Total Risk Management Assets		$	1,686	$	345,084	$	13,791	$	(268,899)	$	91,662

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	1,653	$	312,258	$	8,660	$	(284,432)	$	38,139
Cash Flow Hedges:
	Commodity Hedges (a)		-		2,985		-		(2,258)		727
Total Risk Management Liabilities		$	1,653	$	315,243	$	8,660	$	(286,690)	$	38,866

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

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

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

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

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

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2011 and 2010.

The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:

Three Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2011		$	5,472	$	3,134	$	3,209	$	3,759	$	-	$	-
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(3,219)		(1,863)		(1,910)		(2,233)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		527		-		622		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			4,814		2,786		2,856		3,340		-		-
Transfers into Level 3 (d) (f)			1,125		644		661		773		-		-
Transfers out of Level 3 (e) (f)			(213)		(122)		(125)		(147)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(2,608)		(2,000)		(1,511)		(2,397)		-		-
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Three Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2010		$	18,687	$	10,570	$	10,662	$	12,180	$	2	$	4
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(8,409)		(4,753)		(4,794)		(5,471)		(1)		(1)
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		(556)		-		(667)		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			4,845		2,741		2,764		3,154		(4)		(5)
Transfers into Level 3 (d) (f)			1,332		753		760		867		-		-
Transfers out of Level 3 (e) (f)			(2,006)		(1,135)		(1,145)		(1,306)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(3,575)		(1,467)		(2,038)		(1,688)		1		-
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

Six Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2010		$	5,131	$	2,975	$	3,108	$	3,608	$	1	$	2
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(2,489)		(1,436)		(1,473)		(1,722)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		2,258		-		2,691		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			3,881		2,254		2,311		2,701		-		-
Transfers into Level 3 (d) (f)			1,221		699		718		840		-		-
Transfers out of Level 3 (e) (f)			(2,853)		(1,644)		(1,713)		(2,004)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		480		(2,000)		229		(2,397)		(1)		(2)
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Six Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2009		$	9,428	$	4,776	$	4,816	$	5,569	$	2	$	3
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		1,232		693		698		797		7		9
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		5,157		-		5,849		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			(4,173)		(2,321)		(2,341)		(2,675)		(6)		(7)
Transfers into Level 3 (d) (f)			603		315		318		366		-		-
Transfers out of Level 3 (e) (f)			(1,738)		(999)		(1,008)		(1,148)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		5,522		(1,468)		3,726		(1,689)		(5)		(7)
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

(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.

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

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

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

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

Columbus Southern Power Co [Member]

Fair Value Measurements [Abstract]

Fair Value Measurements

9. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy and Valuation Techniques

Fair Value Measurements of Long-term Debt

The book values and fair values of Long-term Debt for the Registrant Subsidiaries as of June 30, 2011 and December 31, 2010 are summarized in the following table

	June 30, 2011				December 31, 2010
Company	Book Value		Fair Value		Book Value		Fair Value

	(in thousands)
APCo	$	3,725,886	$	4,075,642	$	3,561,141	$	3,878,557
CSPCo		1,438,969		1,581,261		1,438,830		1,571,219
I&M		1,965,094		2,141,768		2,004,226		2,169,520
OPCo		2,614,781		2,855,349		2,729,522		2,945,280
PSO		945,650		1,035,124		971,186		1,040,656
SWEPCo		1,769,646		1,941,357		1,769,520		1,931,516

Fair Value Measurements of Financial Assets and Liabilities

Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2011
CSPCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	542	$	132,069	$	9,623	$	(107,783)	$	34,451
Cash Flow Hedges:
	Commodity Hedges (a)		-		2,438		-		(1,500)		938
Dedesignated Risk Management Contracts (b)			-		-		-		1,540		1,540
Total Risk Management Assets		$	542	$	134,507	$	9,623	$	(107,743)	$	36,929

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	521	$	121,351	$	6,517	$	(112,054)	$	16,335
Cash Flow Hedges:
	Commodity Hedges (a)		-		1,768		29		(1,500)		297
Total Risk Management Liabilities		$	521	$	123,119	$	6,546	$	(113,554)	$	16,632

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	December 31, 2010
CSPCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	972	$	185,699	$	7,950	$	(150,930)	$	43,691
Cash Flow Hedges:
	Commodity Hedges (a)		-		1,531		-		(1,302)		229
Dedesignated Risk Management Contracts (b)			-		-		-		1,943		1,943
Total Risk Management Assets		$	972	$	187,230	$	7,950	$	(150,289)	$	45,863

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	953	$	175,078	$	4,975	$	(159,235)	$	21,771
Cash Flow Hedges:
	Commodity Hedges (a)		-		1,721		-		(1,302)		419
Total Risk Management Liabilities		$	953	$	176,799	$	4,975	$	(160,537)	$	22,190

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

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

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

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2011 and 2010.

The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:

Three Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2011		$	5,472	$	3,134	$	3,209	$	3,759	$	-	$	-
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(3,219)		(1,863)		(1,910)		(2,233)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		527		-		622		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			4,814		2,786		2,856		3,340		-		-
Transfers into Level 3 (d) (f)			1,125		644		661		773		-		-
Transfers out of Level 3 (e) (f)			(213)		(122)		(125)		(147)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(2,608)		(2,000)		(1,511)		(2,397)		-		-
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Three Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2010		$	18,687	$	10,570	$	10,662	$	12,180	$	2	$	4
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(8,409)		(4,753)		(4,794)		(5,471)		(1)		(1)
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		(556)		-		(667)		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			4,845		2,741		2,764		3,154		(4)		(5)
Transfers into Level 3 (d) (f)			1,332		753		760		867		-		-
Transfers out of Level 3 (e) (f)			(2,006)		(1,135)		(1,145)		(1,306)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(3,575)		(1,467)		(2,038)		(1,688)		1		-
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

Six Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2010		$	5,131	$	2,975	$	3,108	$	3,608	$	1	$	2
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(2,489)		(1,436)		(1,473)		(1,722)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		2,258		-		2,691		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			3,881		2,254		2,311		2,701		-		-
Transfers into Level 3 (d) (f)			1,221		699		718		840		-		-
Transfers out of Level 3 (e) (f)			(2,853)		(1,644)		(1,713)		(2,004)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		480		(2,000)		229		(2,397)		(1)		(2)
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Six Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2009		$	9,428	$	4,776	$	4,816	$	5,569	$	2	$	3
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		1,232		693		698		797		7		9
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		5,157		-		5,849		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			(4,173)		(2,321)		(2,341)		(2,675)		(6)		(7)
Transfers into Level 3 (d) (f)			603		315		318		366		-		-
Transfers out of Level 3 (e) (f)			(1,738)		(999)		(1,008)		(1,148)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		5,522		(1,468)		3,726		(1,689)		(5)		(7)
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

(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.

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

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

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

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

Indiana Michigan Power Co [Member]

Fair Value Measurements [Abstract]

Fair Value Measurements

9. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy and Valuation Techniques

AEP utilizes its trustee's external pricing service in its estimate of the fair value of the underlying investments held in the nuclear trusts. AEP's investment managers review and validate the prices utilized by the trustee to determine fair value. AEP's investment managers perform their own valuation testing to verify the fair values of the securities. AEP receives audit reports of the trustee's operating controls and valuation processes. The trustee uses multiple pricing vendors for the assets held in the trusts.

Assets in the nuclear trusts and Other Cash Deposits are classified using the following methods. Equities are classified as Level 1 holdings if they are actively traded on exchanges. Items classified as Level 1 are investments in money market funds, fixed income and equity mutual funds and domestic equities. They are valued based on observable inputs primarily unadjusted quoted prices in active markets for identical assets. Fixed income securities do not trade on an exchange and do not have an official closing price. Pricing vendors calculate bond valuations using financial models and matrices. Fixed income securities are typically classified as Level 2 holdings because their valuation inputs are based on observable market data. Observable inputs used for valuing fixed income securities are benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and economic events. Other securities with model-derived valuation inputs that are observable are also classified as Level 2 investments. Investments with unobservable valuation inputs are classified as Level 3 investments.

Items classified as Level 2 are primarily investments in individual fixed income securities. These fixed income securities are valued using models with input data as follows:

		Type of Fixed Income Security
		United States		State and Local
Type of Input		Government	Corporate Debt	Government

Benchmark Yields		X	X	X
Broker Quotes		X	X	X
Discount Margins		X	X
Treasury Market Update		X
Base Spread		X	X	X
Corporate Actions			X
Ratings Agency Updates			X	X
Prepayment Schedule and
	History			X
Yield Adjustments		X

Fair Value Measurements of Long-term Debt

The book values and fair values of Long-term Debt for the Registrant Subsidiaries as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	June 30, 2011				December 31, 2010
Company	Book Value		Fair Value		Book Value		Fair Value

	(in thousands)
APCo	$	3,725,886	$	4,075,642	$	3,561,141	$	3,878,557
CSPCo		1,438,969		1,581,261		1,438,830		1,571,219
I&M		1,965,094		2,141,768		2,004,226		2,169,520
OPCo		2,614,781		2,855,349		2,729,522		2,945,280
PSO		945,650		1,035,124		971,186		1,040,656
SWEPCo		1,769,646		1,941,357		1,769,520		1,931,516

Fair Value Measurements of Trust Assets for Decommissioning and SNF Disposal

Nuclear decommissioning and spent nuclear fuel trust funds represent funds that regulatory commissions allow I&M to collect through rates to fund future decommissioning and spent nuclear fuel disposal liabilities. By rules or orders, the IURC, the MPSC and the FERC established investment limitations and general risk management guidelines. In general, limitations include:

Acceptable investments (rated investment grade or above when purchased).
Maximum percentage invested in a specific type of investment.
Prohibition of investment in obligations of AEP or its affiliates.
Withdrawals permitted only for payment of decommissioning costs and trust expenses.

I&M maintains trust records for each regulatory jurisdiction. These funds are managed by external investment managers who must comply with the guidelines and rules of the applicable regulatory authorities. The trust assets are invested to optimize the net of tax earnings of the trust giving consideration to liquidity, risk, diversification and other prudent investment objectives.

I&M records securities held in trust funds for decommissioning nuclear facilities and for the disposal of SNF at fair value. I&M classifies securities in the trust funds as available-for-sale due to their long-term purpose. Other-than-temporary impairments for investments in both debt and equity securities are considered realized losses as a result of securities being managed by an external investment management firm. The external investment management firm makes specific investment decisions regarding the equity and debt investments held in these trusts and generally intends to sell debt securities in an unrealized loss position as part of a tax optimization strategy. Impairments reduce the cost basis of the securities which will affect any future unrealized gain or realized gain or loss due to the adjusted cost of investment. I&M records unrealized gains and other-than-temporary impairments from securities in these trust funds as adjustments to the regulatory liability account for the nuclear decommissioning trust funds and to regulatory assets or liabilities for the SNF disposal trust funds in accordance with their treatment in rates. Consequently, changes in fair value of trust assets do not affect earnings or AOCI. The trust assets are recorded by jurisdiction and may not be used for another jurisdiction's liabilities. Regulatory approval is required to withdraw decommissioning funds.

The following is a summary of nuclear trust fund investments at June 30, 2011 and December 31, 2010:

		June 30, 2011						December 31, 2010
		Estimated		Gross		Other-Than-		Estimated		Gross		Other-Than-
		Fair		Unrealized		Temporary		Fair		Unrealized		Temporary
		Value		Gains		Impairments		Value		Gains		Impairments

		(in thousands)
Cash and Cash Equivalents		$	17,114	$	-	$	-	$	20,039	$	-	$	-
Fixed Income Securities:
	United States Government		483,677		27,160		(1,269)		461,084		22,582		(1,489)
	Corporate Debt		56,617		3,495		(785)		59,463		3,716		(1,905)
	State and Local Government		338,145		1,031		(1,169)		340,786		(975)		(340)
	Subtotal Fixed Income Securities		878,439		31,686		(3,223)		861,333		25,323		(3,734)
Equity Securities - Domestic			678,589		231,186		(104,828)		633,855		183,447		(122,889)
Spent Nuclear Fuel and
	Decommissioning Trusts	$	1,574,142	$	262,872	$	(108,051)	$	1,515,227	$	208,770	$	(126,623)

The following table provides the securities activity within the decommissioning and SNF trusts for the three and six months ended June 30, 2011 and 2010:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(in thousands)
Proceeds from Investment Sales	$	176,927	$	360,185	$	464,688	$	592,263
Purchases of Investments		186,217		369,427		492,162		617,059
Gross Realized Gains on Investment Sales		7,392		1,022		12,405		6,350
Gross Realized Losses on Investment Sales		4,043		236		9,290		417

The adjusted cost of debt securities was $848 million and $835 million as of June 30, 2011 and December 31, 2010, respectively. The adjusted cost of equity securities was $447 million and $451 million as of June 30, 2011 and December 31, 2010, respectively.

The fair value of debt securities held in the nuclear trust funds, summarized by contractual maturities, at June 30, 2011 was as follows:

	Fair Value
	of Debt
	Securities

	(in thousands)
Within 1 year	$	77,143
1 year – 5 years		256,056
5 years – 10 years		281,130
After 10 years		264,110
Total	$	878,439

Fair Value Measurements of Financial Assets and Liabilities

Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2011
I&M
			Level 1		Level 2		Level 3		Other		Total

Assets:			(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)			$	555	$	143,023	$	9,864	$	(108,585)	$	44,857
Cash Flow Hedges:
	Commodity Hedges (a)			-		2,512		-		(1,538)		974
Dedesignated Risk Management Contracts (b)				-		-		-		1,579		1,579
Total Risk Management Assets				555		145,535		9,864		(108,544)		47,410

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)				-		4,699		-		12,415		17,114
Fixed Income Securities:
	United States Government			-		483,677		-		-		483,677
	Corporate Debt			-		56,617		-		-		56,617
	State and Local Government			-		338,145		-		-		338,145
		Subtotal Fixed Income Securities		-		878,439		-		-		878,439
Equity Securities - Domestic (e)				678,589		-		-		-		678,589
Total Spent Nuclear Fuel and Decommissioning Trusts				678,589		883,138		-		12,415		1,574,142

Total Assets			$	679,144	$	1,028,673	$	9,864	$	(96,129)	$	1,621,552

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)			$	534	$	122,403	$	6,684	$	(112,959)	$	16,662
Cash Flow Hedges:
	Commodity Hedges (a)			-		1,815		30		(1,538)		307
Total Risk Management Liabilities			$	534	$	124,218	$	6,714	$	(114,497)	$	16,969

		Assets and Liabilities Measured at Fair Value on a Recurring Basis
		December 31, 2010
I&M
			Level 1		Level 2		Level 3		Other		Total

Assets:			(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)			$	1,014	$	209,031	$	8,295	$	(161,531)	$	56,809
Cash Flow Hedges:
	Commodity Hedges (a)			-		1,533		-		(1,358)		175
Dedesignated Risk Management Contracts (b)				-		-		-		2,027		2,027
Total Risk Management Assets				1,014		210,564		8,295		(160,862)		59,011

Spent Nuclear Fuel and Decommissioning Trusts
Cash and Cash Equivalents (d)				-		7,898		-		12,141		20,039
Fixed Income Securities:
	United States Government			-		461,084		-		-		461,084
	Corporate Debt			-		59,463		-		-		59,463
	State and Local Government			-		340,786		-		-		340,786
		Subtotal Fixed Income Securities		-		861,333		-		-		861,333
Equity Securities - Domestic (e)				633,855		-		-		-		633,855
Total Spent Nuclear Fuel and Decommissioning Trusts				633,855		869,231		-		12,141		1,515,227

Total Assets			$	634,869	$	1,079,795	$	8,295	$	(148,721)	$	1,574,238

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)			$	994	$	186,898	$	5,187	$	(170,201)	$	22,878
Cash Flow Hedges:
	Commodity Hedges (a)			-		1,795		-		(1,358)		437
Total Risk Management Liabilities			$	994	$	188,693	$	5,187	$	(171,559)	$	23,315

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

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

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

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2011 and 2010.

The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:

Three Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2011		$	5,472	$	3,134	$	3,209	$	3,759	$	-	$	-
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(3,219)		(1,863)		(1,910)		(2,233)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		527		-		622		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			4,814		2,786		2,856		3,340		-		-
Transfers into Level 3 (d) (f)			1,125		644		661		773		-		-
Transfers out of Level 3 (e) (f)			(213)		(122)		(125)		(147)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(2,608)		(2,000)		(1,511)		(2,397)		-		-
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Three Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2010		$	18,687	$	10,570	$	10,662	$	12,180	$	2	$	4
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(8,409)		(4,753)		(4,794)		(5,471)		(1)		(1)
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		(556)		-		(667)		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			4,845		2,741		2,764		3,154		(4)		(5)
Transfers into Level 3 (d) (f)			1,332		753		760		867		-		-
Transfers out of Level 3 (e) (f)			(2,006)		(1,135)		(1,145)		(1,306)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(3,575)		(1,467)		(2,038)		(1,688)		1		-
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

Six Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2010		$	5,131	$	2,975	$	3,108	$	3,608	$	1	$	2
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(2,489)		(1,436)		(1,473)		(1,722)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		2,258		-		2,691		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			3,881		2,254		2,311		2,701		-		-
Transfers into Level 3 (d) (f)			1,221		699		718		840		-		-
Transfers out of Level 3 (e) (f)			(2,853)		(1,644)		(1,713)		(2,004)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		480		(2,000)		229		(2,397)		(1)		(2)
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Six Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2009		$	9,428	$	4,776	$	4,816	$	5,569	$	2	$	3
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		1,232		693		698		797		7		9
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		5,157		-		5,849		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			(4,173)		(2,321)		(2,341)		(2,675)		(6)		(7)
Transfers into Level 3 (d) (f)			603		315		318		366		-		-
Transfers out of Level 3 (e) (f)			(1,738)		(999)		(1,008)		(1,148)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		5,522		(1,468)		3,726		(1,689)		(5)		(7)
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

(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.

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

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

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

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

Ohio Power Co [Member]

Fair Value Measurements [Abstract]

Fair Value Measurements

9. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy and Valuation Techniques

Fair Value Measurements of Long-term Debt

The book values and fair values of Long-term Debt for the Registrant Subsidiaries as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	June 30, 2011				December 31, 2010
Company	Book Value		Fair Value		Book Value		Fair Value

	(in thousands)
APCo	$	3,725,886	$	4,075,642	$	3,561,141	$	3,878,557
CSPCo		1,438,969		1,581,261		1,438,830		1,571,219
I&M		1,965,094		2,141,768		2,004,226		2,169,520
OPCo		2,614,781		2,855,349		2,729,522		2,945,280
PSO		945,650		1,035,124		971,186		1,040,656
SWEPCo		1,769,646		1,941,357		1,769,520		1,931,516

Fair Value Measurements of Financial Assets and Liabilities

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	June 30, 2011
OPCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Other Cash Deposits (c)		$	26	$	-	$	-	$	22	$	48

Risk Management Assets
Risk Management Commodity Contracts (a) (f)			649		193,046		11,535		(162,774)		42,456
Cash Flow Hedges:
	Commodity Hedges (a)		-		2,993		-		(1,801)		1,192
Dedesignated Risk Management Contracts (b)			-		-		-		1,847		1,847
Total Risk Management Assets			649		196,039		11,535		(162,728)		45,495

Total Assets		$	675	$	196,039	$	11,535	$	(162,706)	$	45,543

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	625	$	180,588	$	7,818	$	(167,994)	$	21,037
Cash Flow Hedges:
	Commodity Hedges (a)		-		2,128		35		(1,801)		362
Total Risk Management Liabilities		$	625	$	182,716	$	7,853	$	(169,795)	$	21,399

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	December 31, 2010
OPCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Other Cash Deposits (c)		$	26	$	-	$	-	$	-	$	26

Risk Management Assets
Risk Management Commodity Contracts (a) (f)			1,186		314,560		9,709		(269,216)		56,239
Cash Flow Hedges:
	Commodity Hedges (a)		-		1,764		-		(1,590)		174
Dedesignated Risk Management Contracts (b)			-		-		-		2,372		2,372
Total Risk Management Assets			1,186		316,324		9,709		(268,434)		58,785

Total Assets		$	1,212	$	316,324	$	9,709	$	(268,434)	$	58,811

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	1,163	$	302,299	$	6,101	$	(279,505)	$	30,058
Cash Flow Hedges:
	Commodity Hedges (a)		-		2,101		-		(1,590)		511
Total Risk Management Liabilities		$	1,163	$	304,400	$	6,101	$	(281,095)	$	30,569

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

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

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

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2011 and 2010.

The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:

Three Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2011		$	5,472	$	3,134	$	3,209	$	3,759	$	-	$	-
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(3,219)		(1,863)		(1,910)		(2,233)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		527		-		622		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			4,814		2,786		2,856		3,340		-		-
Transfers into Level 3 (d) (f)			1,125		644		661		773		-		-
Transfers out of Level 3 (e) (f)			(213)		(122)		(125)		(147)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(2,608)		(2,000)		(1,511)		(2,397)		-		-
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Three Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2010		$	18,687	$	10,570	$	10,662	$	12,180	$	2	$	4
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(8,409)		(4,753)		(4,794)		(5,471)		(1)		(1)
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		(556)		-		(667)		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			4,845		2,741		2,764		3,154		(4)		(5)
Transfers into Level 3 (d) (f)			1,332		753		760		867		-		-
Transfers out of Level 3 (e) (f)			(2,006)		(1,135)		(1,145)		(1,306)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(3,575)		(1,467)		(2,038)		(1,688)		1		-
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

Six Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2010		$	5,131	$	2,975	$	3,108	$	3,608	$	1	$	2
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(2,489)		(1,436)		(1,473)		(1,722)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		2,258		-		2,691		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			3,881		2,254		2,311		2,701		-		-
Transfers into Level 3 (d) (f)			1,221		699		718		840		-		-
Transfers out of Level 3 (e) (f)			(2,853)		(1,644)		(1,713)		(2,004)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		480		(2,000)		229		(2,397)		(1)		(2)
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Six Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2009		$	9,428	$	4,776	$	4,816	$	5,569	$	2	$	3
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		1,232		693		698		797		7		9
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		5,157		-		5,849		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			(4,173)		(2,321)		(2,341)		(2,675)		(6)		(7)
Transfers into Level 3 (d) (f)			603		315		318		366		-		-
Transfers out of Level 3 (e) (f)			(1,738)		(999)		(1,008)		(1,148)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		5,522		(1,468)		3,726		(1,689)		(5)		(7)
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

(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.

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

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

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

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

Public Service Co Of Oklahoma [Member]

Fair Value Measurements [Abstract]

Fair Value Measurements

9. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy and Valuation Techniques

Fair Value Measurements of Long-term Debt

The book values and fair values of Long-term Debt for the Registrant Subsidiaries as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	June 30, 2011				December 31, 2010
Company	Book Value		Fair Value		Book Value		Fair Value

	(in thousands)
APCo	$	3,725,886	$	4,075,642	$	3,561,141	$	3,878,557
CSPCo		1,438,969		1,581,261		1,438,830		1,571,219
I&M		1,965,094		2,141,768		2,004,226		2,169,520
OPCo		2,614,781		2,855,349		2,729,522		2,945,280
PSO		945,650		1,035,124		971,186		1,040,656
SWEPCo		1,769,646		1,941,357		1,769,520		1,931,516

Fair Value Measurements of Financial Assets and Liabilities

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	June 30, 2011
PSO
		Level 1		Level 2		Level 3		Other		Total
Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	2	$	14,471	$	-	$	(13,493)	$	980
Cash Flow Hedges:
	Commodity Hedges (a)		-		202		-		(7)		195
Total Risk Management Assets		$	2	$	14,673	$	-	$	(13,500)	$	1,175

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	1	$	14,559	$	-	$	(13,537)	$	1,023
Cash Flow Hedges:
	Commodity Hedges (a)		-		19		-		(7)		12
Total Risk Management Liabilities		$	1	$	14,578	$	-	$	(13,544)	$	1,035

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	December 31, 2010
PSO
		Level 1		Level 2		Level 3		Other		Total
Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	-	$	21,119	$	1	$	(20,335)	$	785
Cash Flow Hedges:
	Commodity Hedges		-		134		-		-		134
	Interest Rate/Foreign Currency Hedges		-		13,558		-		-		13,558
Total Risk Management Assets		$	-	$	34,811	$	1	$	(20,335)	$	14,477

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	-	$	21,498	$	-	$	(20,379)	$	1,119

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

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

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

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2011 and 2010.

The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:

Three Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2011		$	5,472	$	3,134	$	3,209	$	3,759	$	-	$	-
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(3,219)		(1,863)		(1,910)		(2,233)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		527		-		622		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			4,814		2,786		2,856		3,340		-		-
Transfers into Level 3 (d) (f)			1,125		644		661		773		-		-
Transfers out of Level 3 (e) (f)			(213)		(122)		(125)		(147)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(2,608)		(2,000)		(1,511)		(2,397)		-		-
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Three Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2010		$	18,687	$	10,570	$	10,662	$	12,180	$	2	$	4
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(8,409)		(4,753)		(4,794)		(5,471)		(1)		(1)
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		(556)		-		(667)		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			4,845		2,741		2,764		3,154		(4)		(5)
Transfers into Level 3 (d) (f)			1,332		753		760		867		-		-
Transfers out of Level 3 (e) (f)			(2,006)		(1,135)		(1,145)		(1,306)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(3,575)		(1,467)		(2,038)		(1,688)		1		-
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

Six Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2010		$	5,131	$	2,975	$	3,108	$	3,608	$	1	$	2
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(2,489)		(1,436)		(1,473)		(1,722)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		2,258		-		2,691		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			3,881		2,254		2,311		2,701		-		-
Transfers into Level 3 (d) (f)			1,221		699		718		840		-		-
Transfers out of Level 3 (e) (f)			(2,853)		(1,644)		(1,713)		(2,004)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		480		(2,000)		229		(2,397)		(1)		(2)
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Six Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2009		$	9,428	$	4,776	$	4,816	$	5,569	$	2	$	3
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		1,232		693		698		797		7		9
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		5,157		-		5,849		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			(4,173)		(2,321)		(2,341)		(2,675)		(6)		(7)
Transfers into Level 3 (d) (f)			603		315		318		366		-		-
Transfers out of Level 3 (e) (f)			(1,738)		(999)		(1,008)		(1,148)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		5,522		(1,468)		3,726		(1,689)		(5)		(7)
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

(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.

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

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

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

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

Southwestern Electric Power Co [Member]

Fair Value Measurements [Abstract]

Fair Value Measurements

9. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy and Valuation Techniques

Fair Value Measurements of Long-term Debt

The book values and fair values of Long-term Debt for the Registrant Subsidiaries as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	June 30, 2011				December 31, 2010
Company	Book Value		Fair Value		Book Value		Fair Value

	(in thousands)
APCo	$	3,725,886	$	4,075,642	$	3,561,141	$	3,878,557
CSPCo		1,438,969		1,581,261		1,438,830		1,571,219
I&M		1,965,094		2,141,768		2,004,226		2,169,520
OPCo		2,614,781		2,855,349		2,729,522		2,945,280
PSO		945,650		1,035,124		971,186		1,040,656
SWEPCo		1,769,646		1,941,357		1,769,520		1,931,516

Fair Value Measurements of Financial Assets and Liabilities

Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2011
SWEPCo
		Level 1		Level 2		Level 3		Other		Total
Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	2	$	13,840	$	-	$	(13,341)	$	501
Cash Flow Hedges:
	Commodity Hedges (a)		-		186		-		(5)		181
	Interest Rate/Foreign Currency Hedges		-		1,227		-		-		1,227
Total Risk Management Assets		$	2	$	15,253	$	-	$	(13,346)	$	1,909

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	1	$	14,906	$	-	$	(13,384)	$	1,523
Cash Flow Hedges:
	Commodity Hedges (a)		-		16		-		(5)		11
Total Risk Management Liabilities		$	1	$	14,922	$	-	$	(13,389)	$	1,534

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	December 31, 2010
SWEPCo
		Level 1		Level 2		Level 3		Other		Total

Assets:		(in thousands)

Risk Management Assets
Risk Management Commodity Contracts (a) (f)		$	-	$	36,632	$	2	$	(35,115)	$	1,519
Cash Flow Hedges:
	Commodity Hedges		-		123		-		-		123
	Interest Rate/Foreign Currency Hedges		-		5		-		-		5
Total Risk Management Assets		$	-	$	36,760	$	2	$	(35,115)	$	1,647

Liabilities:

Risk Management Liabilities
Risk Management Commodity Contracts (a) (f)		$	-	$	39,592	$	-	$	(35,187)	$	4,405

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

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

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

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2011 and 2010.

The following tables set forth a reconciliation of changes in the fair value of net trading derivatives classified as Level 3 in the fair value hierarchy:

Three Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2011		$	5,472	$	3,134	$	3,209	$	3,759	$	-	$	-
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(3,219)		(1,863)		(1,910)		(2,233)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		527		-		622		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			4,814		2,786		2,856		3,340		-		-
Transfers into Level 3 (d) (f)			1,125		644		661		773		-		-
Transfers out of Level 3 (e) (f)			(213)		(122)		(125)		(147)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(2,608)		(2,000)		(1,511)		(2,397)		-		-
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Three Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of March 31, 2010		$	18,687	$	10,570	$	10,662	$	12,180	$	2	$	4
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(8,409)		(4,753)		(4,794)		(5,471)		(1)		(1)
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		(556)		-		(667)		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			4,845		2,741		2,764		3,154		(4)		(5)
Transfers into Level 3 (d) (f)			1,332		753		760		867		-		-
Transfers out of Level 3 (e) (f)			(2,006)		(1,135)		(1,145)		(1,306)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		(3,575)		(1,467)		(2,038)		(1,688)		1		-
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

Six Months Ended June 30, 2011		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2010		$	5,131	$	2,975	$	3,108	$	3,608	$	1	$	2
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		(2,489)		(1,436)		(1,473)		(1,722)		-		-
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		2,258		-		2,691		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		(50)		(29)		(30)		(35)		-		-
Purchases, Issuances and Settlements (c)			3,881		2,254		2,311		2,701		-		-
Transfers into Level 3 (d) (f)			1,221		699		718		840		-		-
Transfers out of Level 3 (e) (f)			(2,853)		(1,644)		(1,713)		(2,004)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		480		(2,000)		229		(2,397)		(1)		(2)
Balance as of June 30, 2011		$	5,321	$	3,077	$	3,150	$	3,682	$	-	$	-

Six Months Ended June 30, 2010		APCo		CSPCo		I&M		OPCo		PSO		SWEPCo

		(in thousands)
Balance as of December 31, 2009		$	9,428	$	4,776	$	4,816	$	5,569	$	2	$	3
Realized Gain (Loss) Included in Net Income
	(or Changes in Net Assets) (a) (b)		1,232		693		698		797		7		9
Unrealized Gain (Loss) Included in Net
	Income (or Changes in Net Assets) Relating
	to Assets Still Held at the Reporting Date (a)		-		5,157		-		5,849		-		-
Realized and Unrealized Gains (Losses)
	Included in Other Comprehensive Income		-		-		-		-		-		-
Purchases, Issuances and Settlements (c)			(4,173)		(2,321)		(2,341)		(2,675)		(6)		(7)
Transfers into Level 3 (d) (f)			603		315		318		366		-		-
Transfers out of Level 3 (e) (f)			(1,738)		(999)		(1,008)		(1,148)		-		-
Changes in Fair Value Allocated to Regulated
	Jurisdictions (g)		5,522		(1,468)		3,726		(1,689)		(5)		(7)
Balance as of June 30, 2010		$	10,874	$	6,153	$	6,209	$	7,069	$	(2)	$	(2)

(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.

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

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

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

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

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details