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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2012
Book Values and Fair Values of Long-term Debt
   June 30, 2012 December 31, 2011
   Book Value Fair Value Book Value Fair Value
   (in millions)
 Long-term Debt $ 17,302 $ 20,025 $ 16,516 $ 19,259
Other Temporary Investments
     June 30, 2012 
       Gross Gross Estimated 
        Unrealized Unrealized  Fair
 Other Temporary Investments Cost Gains Losses Value
     (in millions) 
 Restricted Cash (a) $ 217 $ - $ - $ 217 
 Fixed Income Securities:             
  Mutual Funds   64   1   -   65 
 Equity Securities - Mutual Funds   11   4   -   15 
 Total Other Temporary Investments $ 292 $ 5 $ - $ 297 
                 
     December 31, 2011 
       Gross Gross Estimated 
        Unrealized Unrealized  Fair 
 Other Temporary Investments Cost Gains Losses Value 
     (in millions) 
 Restricted Cash (a) $ 216 $ - $ - $ 216 
 Fixed Income Securities:             
  Mutual Funds   64   -   -   64 
 Equity Securities - Mutual Funds   11   3   -   14 
 Total Other Temporary Investments $ 291 $ 3 $ - $ 294 
                 
 (a)Primarily represents amounts held for the repayment of debt.
Debt and Equity Securities Within Other Temporary Investments
  Three Months Ended June 30, Six Months Ended June 30,
  2012 2011 2012 2011
  (in millions)
 Proceeds from Investment Sales$ - $ 51 $ - $ 247
 Purchases of Investments  1   5   1   153
 Gross Realized Gains on Investment Sales  -   -   -   -
 Gross Realized Losses on Investment Sales  -   -   -   -
Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
 Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
 Three Months Ended June 30, 2012
       
     (in millions)
 Balance in AOCI as of March 31, 2012 $ 4
 Changes in Fair Value Recognized in AOCI   (1)
 Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:   
   Interest Income   -
 Balance in AOCI as of June 30, 2012 $ 3

 Total Accumulated Other Comprehensive Income (Loss) Activity for Other Temporary Investments
 Six Months Ended June 30, 2012
       
     (in millions)
 Balance in AOCI as of December 31, 2011 $ 2
 Changes in Fair Value Recognized in AOCI   1
 Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income:   
   Interest Income   -
 Balance in AOCI as of June 30, 2012 $ 3
Nuclear Trust Fund Investments
    June 30, 2012 December 31, 2011
    Estimated Gross Other-Than-  Estimated Gross Other-Than-
   FairUnrealizedTemporaryFairUnrealizedTemporary
   ValueGainsImpairmentsValueGainsImpairments
                     
    (in millions)
 Cash and Cash Equivalents $ 16 $ - $ - $ 18 $ - $ -
 Fixed Income Securities:                  
  United States Government   644   104   (1)   544   61   (1)
  Corporate Debt   44   5   (1)   54   5   (2)
  State and Local Government   256   1   (1)   330   -   (2)
   Subtotal Fixed Income Securities  944   110   (3)   928   66   (5)
 Equity Securities - Domestic   698   258   (79)   646   215   (80)
 Spent Nuclear Fuel and                  
  Decommissioning Trusts $ 1,658 $ 368 $ (82) $ 1,592 $ 281 $ (85)
Securities Activity Within the Decommissioning and SNF Trusts
  Three Months Ended June 30, Six Months Ended June 30,
  2012 2011 2012 2011
  (in millions)
 Proceeds from Investment Sales$ 183 $ 177 $ 517 $ 465
 Purchases of Investments  192   186   545   492
 Gross Realized Gains on Investment Sales  3   7   5   12
 Gross Realized Losses on Investment Sales  1   4   2   9
Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts
  Fair Value 
  of Debt 
  Securities 
  (in millions) 
 Within 1 year$ 40 
 1 year – 5 years  362 
 5 years – 10 years  315 
 After 10 years  227 
 Total$ 944 
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2012
            
   Level 1 Level 2 Level 3 Other Total
                 
Assets:(in millions)
                 
Cash and Cash Equivalents (a)$ 20 $ - $ - $ 277 $ 297
                 
Other Temporary Investments              
Restricted Cash (a)  186   -   -   31   217
Fixed Income Securities:              
 Mutual Funds  65   -   -   -   65
Equity Securities - Mutual Funds (b)  15   -   -   -   15
Total Other Temporary Investments  266   -   -   31   297
                 
Risk Management Assets              
Risk Management Commodity Contracts (c) (f)  53   1,509   163   (1,128)   597
Cash Flow Hedges:              
 Commodity Hedges (c)  13   38   1   (14)   38
Fair Value Hedges  -   2   -   -   2
De-designated Risk Management Contracts (d)  -   -   -   21   21
Total Risk Management Assets   66   1,549   164   (1,121)   658
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (e)  -   4   -   12   16
Fixed Income Securities:              
 United States Government  -   644   -   -   644
 Corporate Debt  -   44   -   -   44
 State and Local Government  -   256   -   -   256
  Subtotal Fixed Income Securities  -   944   -   -   944
Equity Securities - Domestic (b)  698   -   -   -   698
Total Spent Nuclear Fuel and Decommissioning Trusts  698   948   -   12   1,658
                 
Total Assets$ 1,050 $ 2,497 $ 164 $ (801) $ 2,910
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (c) (f)$ 47 $ 1,419 $ 67 $ (1,204) $ 329
Cash Flow Hedges:              
 Commodity Hedges (c)  -   74   -   (14)   60
 Interest Rate/Foreign Currency Hedges  -   35   -   -   35
Total Risk Management Liabilities $ 47 $ 1,528 $ 67 $ (1,218) $ 424

Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2011
            
   Level 1 Level 2 Level 3 Other Total
                 
Assets:(in millions)
                 
Cash and Cash Equivalents (a)$ 6 $ - $ - $ 215 $ 221
                 
Other Temporary Investments              
Restricted Cash (a)  191   -   -   25   216
Fixed Income Securities:              
 Mutual Funds  64   -   -   -   64
Equity Securities - Mutual Funds (b)  14   -   -   -   14
Total Other Temporary Investments  269   -   -   25   294
                 
Risk Management Assets              
Risk Management Commodity Contracts (c) (g)  47   1,299   147   (945)   548
Cash Flow Hedges:              
 Commodity Hedges (c)  15   23   -   (18)   20
De-designated Risk Management Contracts (d)  -   -   -   28   28
Total Risk Management Assets   62   1,322   147   (935)   596
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (e)  -   5   -   13   18
Fixed Income Securities:              
 United States Government  -   544   -   -   544
 Corporate Debt  -   54   -   -   54
 State and Local Government  -   330   -   -   330
  Subtotal Fixed Income Securities  -   928   -   -   928
Equity Securities - Domestic (b)  646   -   -   -   646
Total Spent Nuclear Fuel and Decommissioning Trusts  646   933   -   13   1,592
                 
Total Assets$ 983 $ 2,255 $ 147 $ (682) $ 2,703
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (c) (g)$ 43 $ 1,209 $ 78 $ (1,052) $ 278
Cash Flow Hedges:              
 Commodity Hedges (c)  -   43   -   (18)   25
 Interest Rate/Foreign Currency Hedges  -   42   -   -   42
Total Risk Management Liabilities $ 43 $ 1,294 $ 78 $ (1,070) $ 345

(a)       Amounts in ''Other'' column primarily represent cash deposits in bank accounts with financial institutions or with third parties. Level 1 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)       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.

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

(f)       The June 30, 2012 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $2 million in 2012, $12 million in periods 2013-2015 and ($8) million in periods 2016-2018; Level 2 matures $12 million in 2012, $52 million in periods 2013-2015, $17 million in periods 2016-2017 and $9 million in periods 2018-2030; Level 3 matures $7 million in 2012, $38 million in periods 2013-2015, $24 million in periods 2016-2017 and $27 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.

(g)       The December 31, 2011 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $3 million in 2012, $7 million in periods 2013-2015 and ($6) million in periods 2016-2018; Level 2 matures $21 million in 2012, $50 million in periods 2013-2015, $11 million in periods 2016-2017 and $8 million in periods 2018-2030; Level 3 matures ($19) million in 2012, $44 million in periods 2013-2015, $18 million in periods 2016-2017 and $26 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.
Changes in Fair Value of Net Trading Derivatives and Other Investments
    Net Risk Management
 Three Months Ended June 30, 2012 Assets (Liabilities)
      
    (in millions)
 Balance as of March 31, 2012 $ 92
 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)   4
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   -
 Purchases, Issuances and Settlements (c)   15
 Transfers into Level 3 (d) (f)   (1)
 Transfers out of Level 3 (e) (f)   (8)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   6
 Balance as of June 30, 2012 $ 97

    Net Risk Management
 Three Months Ended June 30, 2011 Assets (Liabilities)
      
    (in millions)
 Balance as of March 31, 2011 $ 73
 Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)   (10)
 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   -
 Purchases, Issuances and Settlements (c)   14
 Transfers into Level 3 (d) (f)   3
 Transfers out of Level 3 (e) (f)   (4)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   (9)
 Balance as of June 30, 2011 $ 77

    Net Risk Management
 Six Months Ended June 30, 2012 Assets (Liabilities)
      
    (in millions)
 Balance as of December 31, 2011 $ 69
 Realized Gain (Loss) Included in Net Income (or Changes in Net Assets) (a) (b)   (17)
 Unrealized Gain (Loss) Included in Net Income (or Changes in Net Assets)   
  Relating to Assets Still Held at the Reporting Date (a)   5
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   -
 Purchases, Issuances and Settlements (c)   33
 Transfers into Level 3 (d) (f)   14
 Transfers out of Level 3 (e) (f)   (20)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   13
 Balance as of June 30, 2012 $ 97

    Net Risk Management
 Six Months Ended June 30, 2011 Assets (Liabilities)
      
    (in millions)
 Balance as of December 31, 2010 $ 85
 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)   7
 Realized and Unrealized Gains (Losses) Included in Other Comprehensive Income   -
 Purchases, Issuances and Settlements (c)   6
 Transfers into Level 3 (d) (f)   4
 Transfers out of Level 3 (e) (f)   (12)
 Changes in Fair Value Allocated to Regulated Jurisdictions (g)   (4)
 Balance as of June 30, 2011 $ 77

       (a)       Included in revenues on our 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)       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 our condensed statements of income. These net gains (losses) are recorded as regulatory liabilities/assets.
Significant Unobservable Inputs for Level 3
   Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in millions)          
 Energy Contracts $ 152 $ 60 Discounted Cash Flow Forward Market Price $ 10.76 $ 174.18
 FTRs   12   7 Discounted Cash Flow Forward Market Price   (10.77)   10.78
 Total $ 164 $ 67          

(a)       Represents market prices beyond defined terms for Levels 1 and 2.
Appalachian Power Co [Member]
  
Book Values and Fair Values of Long-term Debt
   June 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
              
   (in thousands)
 APCo $ 3,677,116 $ 4,380,840 $ 3,726,251 $ 4,431,912
 I&M   2,131,501   2,402,581   2,057,675   2,339,344
 OPCo   3,860,044   4,453,479   4,054,148   4,665,739
 PSO   949,897   1,138,292   947,364   1,123,306
 SWEPCo   2,047,676   2,315,719   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2012
APCo         
  Level 1 Level 2 Level 3 Other Total
                
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 5,566 $ 331,309 $ 27,645 $ (279,843) $ 84,677
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,186   29   (252)   963
De-designated Risk Management Contracts (b)  -   -   -   877   877
Total Risk Management Assets $ 5,566 $ 332,495 $ 27,674 $ (279,218) $ 86,517
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 2,784 $ 321,155 $ 14,810 $ (296,846) $ 41,903
Cash Flow Hedges:              
 Commodity Hedges (a)  -   4,023   -   (252)   3,771
Total Risk Management Liabilities $ 2,784 $ 325,178 $ 14,810 $ (297,098) $ 45,674

Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2011
APCo         
  Level 1 Level 2 Level 3 Other Total
                
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 4,680 $ 302,128 $ 25,423 $ (255,324) $ 76,907
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,095   -   (664)   431
De-designated Risk Management Contracts (b)  -   -   -   1,533   1,533
Total Risk Management Assets $ 4,680 $ 303,223 $ 25,423 $ (254,455) $ 78,871
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 2,535 $ 291,194 $ 23,379 $ (279,997) $ 37,111
Cash Flow Hedges:              
 Commodity Hedges (a)  -   3,009   73   (664)   2,418
Total Risk Management Liabilities $ 2,535 $ 294,203 $ 23,452 $ (280,661) $ 39,529

(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.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(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, I&M and OPCo and coal contracts for PSO and SWEPCo.
Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2012 $ 7,981 $ 5,614 $ 11,767 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,210)   (2,258)   (4,734)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,711   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (11)   (8)   (16)   -   -
Purchases, Issuances and Settlements (c)   4,988   3,508   7,355   -   -
Transfers into Level 3 (d) (f)   1,301   915   1,919   -   -
Transfers out of Level 3 (e) (f)   (557)   (392)   (821)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   2,372   1,670   1,788   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Three Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2011 $ 5,472 $ 3,209 $ 6,893 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,219)   (1,910)   (4,096)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,149   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   4,814   2,856   6,126   -   -
Transfers into Level 3 (d) (f)   1,125   661   1,417   -   -
Transfers out of Level 3 (e) (f)   (213)   (125)   (269)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (2,608)   (1,511)   (4,397)   -   -
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

Six Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,313)   (3,590)   (7,533)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   7,035   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   52   34   71   -   -
Purchases, Issuances and Settlements (c)   11,499   7,811   16,397   -   -
Transfers into Level 3 (d) (f)   3,562   2,341   4,934   -   -
Transfers out of Level 3 (e) (f)   (4,676)   (3,028)   (6,388)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   5,769   4,218   1,787   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Six Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,489)   (1,473)   (3,158)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,949   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   3,881   2,311   4,955   -   -
Transfers into Level 3 (d) (f)   1,221   718   1,539   -   -
Transfers out of Level 3 (e) (f)   (2,853)   (1,713)   (3,648)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   480   229   (4,397)   (1)   (2)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

(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)       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.
Significant Unobservable Inputs for Level 3
 APCo Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in thousands)          
 Energy Contracts $ 24,551 $ 12,881 Discounted Cash Flow Forward Market Price $ 10.76 $ 161.12
 FTRs   3,123   1,929 Discounted Cash Flow Forward Market Price   (4.02)   10.78
 Total $ 27,674 $ 14,810          

(a)       Represents market prices beyond defined terms for Levels 1 and 2.
Indiana Michigan Power Co [Member]
  
Book Values and Fair Values of Long-term Debt
   June 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
              
   (in thousands)
 APCo $ 3,677,116 $ 4,380,840 $ 3,726,251 $ 4,431,912
 I&M   2,131,501   2,402,581   2,057,675   2,339,344
 OPCo   3,860,044   4,453,479   4,054,148   4,665,739
 PSO   949,897   1,138,292   947,364   1,123,306
 SWEPCo   2,047,676   2,315,719   1,728,637   2,019,094
Nuclear Trust Fund Investments
    June 30, 2012 December 31, 2011
    Estimated Gross Other-Than-  Estimated Gross Other-Than-
   FairUnrealizedTemporaryFairUnrealizedTemporary
   ValueGainsImpairmentsValueGainsImpairments
                     
    (in thousands)
 Cash and Cash Equivalents $ 15,826 $ - $ - $ 18,229 $ - $ -
 Fixed Income Securities:                  
  United States Government   643,542   104,394   (640)   543,506   60,946   (547)
  Corporate Debt   44,354   5,113   (1,463)   53,979   4,932   (1,536)
  State and Local Government   256,373   698   (1,182)   329,986   (430)   (2,236)
   Subtotal Fixed Income Securities  944,269   110,205   (3,285)   927,471   65,448   (4,319)
 Equity Securities - Domestic   697,407   257,975   (78,841)   646,032   214,748   (79,536)
 Spent Nuclear Fuel and                  
  Decommissioning Trusts $ 1,657,502 $ 368,180 $ (82,126) $ 1,591,732 $ 280,196 $ (83,855)
Securities Activity Within the Decommissioning and SNF Trusts
  Three Months Ended June 30, Six Months Ended June 30,
  2012 2011 2012 2011
  (in thousands)
 Proceeds from Investment Sales$ 182,179 $ 176,927 $ 516,579 $ 464,688
 Purchases of Investments  192,104   186,217   544,981   492,162
 Gross Realized Gains on Investment Sales  3,380   7,392   4,932   12,405
 Gross Realized Losses on Investment Sales  803   4,043   2,219   9,290
Contractual Maturities, Fair Value of Debt Securities in Nuclear Trusts
  Fair Value 
  of Debt 
  Securities 
     
  (in thousands) 
 Within 1 year$ 39,580 
 1 year – 5 years  361,676 
 5 years – 10 years  315,547 
 After 10 years  227,466 
 Total$ 944,269 
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2012
I&M         
   Level 1 Level 2 Level 3 Other Total
                 
Assets:(in thousands)
                 
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 3,915 $ 242,091 $ 19,445 $ (196,279) $ 69,172
Cash Flow Hedges:              
 Commodity Hedges (a)  -   834   21   (178)   677
De-designated Risk Management Contracts (b)  -   -   -   617   617
Total Risk Management Assets   3,915   242,925   19,466   (195,840)   70,466
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (d)  -   3,984   -   11,842   15,826
Fixed Income Securities:              
 United States Government  -   643,542   -   -   643,542
 Corporate Debt  -   44,354   -   -   44,354
 State and Local Government  -   256,373   -   -   256,373
  Subtotal Fixed Income Securities  -   944,269   -   -   944,269
Equity Securities - Domestic (e)  697,407   -   -   -   697,407
Total Spent Nuclear Fuel and Decommissioning Trusts  697,407   948,253   -   11,842   1,657,502
                 
Total Assets$ 701,322 $ 1,191,178 $ 19,466 $ (183,998) $ 1,727,968
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 1,958 $ 225,269 $ 10,417 $ (208,198) $ 29,446
Cash Flow Hedges:              
 Commodity Hedges (a)  -   2,784   -   (178)   2,606
 Interest Rate/Foreign Currency Hedges  -   18,095   -   -   18,095
Total Risk Management Liabilities $ 1,958 $ 246,148 $ 10,417 $ (208,376) $ 50,147

  Assets and Liabilities Measured at Fair Value on a Recurring Basis
  December 31, 2011
I&M         
   Level 1 Level 2 Level 3 Other Total
                 
Assets:(in thousands)
                 
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 3,001 $ 203,175 $ 16,305 $ (162,227) $ 60,254
Cash Flow Hedges:              
 Commodity Hedges (a)  -   702   -   (425)   277
De-designated Risk Management Contracts (b)  -   -   -   983   983
Total Risk Management Assets   3,001   203,877   16,305   (161,669)   61,514
                 
Spent Nuclear Fuel and Decommissioning Trusts              
Cash and Cash Equivalents (d)  -   5,431   -   12,798   18,229
Fixed Income Securities:              
 United States Government  -   543,506   -   -   543,506
 Corporate Debt  -   53,979   -   -   53,979
 State and Local Government  -   329,986   -   -   329,986
  Subtotal Fixed Income Securities  -   927,471   -   -   927,471
Equity Securities - Domestic (e)  646,032   -   -   -   646,032
Total Spent Nuclear Fuel and Decommissioning Trusts  646,032   932,902   -   12,798   1,591,732
                 
Total Assets$ 649,033 $ 1,136,779 $ 16,305 $ (148,871) $ 1,653,246
                 
Liabilities:              
                 
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 1,626 $ 185,092 $ 14,995 $ (178,022) $ 23,691
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,901   47   (425)   1,523
 Interest Rate/Foreign Currency Hedges  -   10,637   -   -   10,637
Total Risk Management Liabilities $ 1,626 $ 197,630 $ 15,042 $ (178,447) $ 35,851

(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.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(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, I&M and OPCo and coal contracts for PSO and SWEPCo.
Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2012 $ 7,981 $ 5,614 $ 11,767 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,210)   (2,258)   (4,734)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,711   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (11)   (8)   (16)   -   -
Purchases, Issuances and Settlements (c)   4,988   3,508   7,355   -   -
Transfers into Level 3 (d) (f)   1,301   915   1,919   -   -
Transfers out of Level 3 (e) (f)   (557)   (392)   (821)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   2,372   1,670   1,788   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Three Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2011 $ 5,472 $ 3,209 $ 6,893 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,219)   (1,910)   (4,096)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,149   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   4,814   2,856   6,126   -   -
Transfers into Level 3 (d) (f)   1,125   661   1,417   -   -
Transfers out of Level 3 (e) (f)   (213)   (125)   (269)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (2,608)   (1,511)   (4,397)   -   -
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

Six Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,313)   (3,590)   (7,533)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   7,035   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   52   34   71   -   -
Purchases, Issuances and Settlements (c)   11,499   7,811   16,397   -   -
Transfers into Level 3 (d) (f)   3,562   2,341   4,934   -   -
Transfers out of Level 3 (e) (f)   (4,676)   (3,028)   (6,388)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   5,769   4,218   1,787   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Six Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,489)   (1,473)   (3,158)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,949   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   3,881   2,311   4,955   -   -
Transfers into Level 3 (d) (f)   1,221   718   1,539   -   -
Transfers out of Level 3 (e) (f)   (2,853)   (1,713)   (3,648)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   480   229   (4,397)   (1)   (2)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

(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)       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.
Significant Unobservable Inputs for Level 3
 I&M Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in thousands)          
 Energy Contracts $ 17,269 $ 9,060 Discounted Cash Flow Forward Market Price $ 10.76 $ 161.12
 FTRs   2,197   1,357 Discounted Cash Flow Forward Market Price   (4.02)   10.78
 Total $ 19,466 $ 10,417          

(a)       Represents market prices beyond defined terms for Levels 1 and 2.
Ohio Power Co [Member]
  
Book Values and Fair Values of Long-term Debt
   June 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
              
   (in thousands)
 APCo $ 3,677,116 $ 4,380,840 $ 3,726,251 $ 4,431,912
 I&M   2,131,501   2,402,581   2,057,675   2,339,344
 OPCo   3,860,044   4,453,479   4,054,148   4,665,739
 PSO   949,897   1,138,292   947,364   1,123,306
 SWEPCo   2,047,676   2,315,719   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 June 30, 2012
OPCo              
  Level 1 Level 2 Level 3 Other Total
                
Assets:(in thousands)
                
Other Cash Deposits (c)$ - $ 26 $ - $ 39 $ 65
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)  8,207   504,483   40,766   (426,917)   126,539
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,749   43   (372)   1,420
De-designated Risk Management Contracts (b)  -   -   -   1,293   1,293
Total Risk Management Assets   8,207   506,232   40,809   (425,996)   129,252
                
Total Assets$ 8,207 $ 506,258 $ 40,809 $ (425,957) $ 129,317
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 4,106 $ 489,384 $ 21,840 $ (451,936) $ 63,394
Cash Flow Hedges:              
 Commodity Hedges (a)  -   5,872   -   (372)   5,500
Total Risk Management Liabilities $ 4,106 $ 495,256 $ 21,840 $ (452,308) $ 68,894

 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 December 31, 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)  6,339   421,249   34,425   (356,766)   105,247
Cash Flow Hedges:              
 Commodity Hedges (a)  -   1,483   -   (899)   584
De-designated Risk Management Contracts (b)  -   -   -   2,076   2,076
Total Risk Management Assets   6,339   422,732   34,425   (355,589)   107,907
                
Total Assets$ 6,365 $ 422,732 $ 34,425 $ (355,567) $ 107,955
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 3,433 $ 406,259 $ 31,659 $ (390,139) $ 51,212
Cash Flow Hedges:              
 Commodity Hedges (a)  -   4,038   100   (899)   3,239
Total Risk Management Liabilities $ 3,433 $ 410,297 $ 31,759 $ (391,038) $ 54,451

(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.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(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, I&M and OPCo and coal contracts for PSO and SWEPCo.
Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2012 $ 7,981 $ 5,614 $ 11,767 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,210)   (2,258)   (4,734)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,711   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (11)   (8)   (16)   -   -
Purchases, Issuances and Settlements (c)   4,988   3,508   7,355   -   -
Transfers into Level 3 (d) (f)   1,301   915   1,919   -   -
Transfers out of Level 3 (e) (f)   (557)   (392)   (821)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   2,372   1,670   1,788   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Three Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2011 $ 5,472 $ 3,209 $ 6,893 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,219)   (1,910)   (4,096)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,149   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   4,814   2,856   6,126   -   -
Transfers into Level 3 (d) (f)   1,125   661   1,417   -   -
Transfers out of Level 3 (e) (f)   (213)   (125)   (269)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (2,608)   (1,511)   (4,397)   -   -
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

Six Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,313)   (3,590)   (7,533)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   7,035   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   52   34   71   -   -
Purchases, Issuances and Settlements (c)   11,499   7,811   16,397   -   -
Transfers into Level 3 (d) (f)   3,562   2,341   4,934   -   -
Transfers out of Level 3 (e) (f)   (4,676)   (3,028)   (6,388)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   5,769   4,218   1,787   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Six Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,489)   (1,473)   (3,158)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,949   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   3,881   2,311   4,955   -   -
Transfers into Level 3 (d) (f)   1,221   718   1,539   -   -
Transfers out of Level 3 (e) (f)   (2,853)   (1,713)   (3,648)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   480   229   (4,397)   (1)   (2)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

(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)       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.
Significant Unobservable Inputs for Level 3
 OPCo Fair Value Valuation Significant Forward Price Range
  Assets LiabilitiesTechniqueUnobservable Input (a) Low High
   (in thousands)          
 Energy Contracts $ 36,203 $ 18,995 Discounted Cash Flow Forward Market Price $ 10.76 $ 161.12
 FTRs   4,606   2,845 Discounted Cash Flow Forward Market Price   (4.02)   10.78
 Total $ 40,809 $ 21,840          

(a)       Represents market prices beyond defined terms for Levels 1 and 2.
Public Service Co Of Oklahoma [Member]
  
Book Values and Fair Values of Long-term Debt
   June 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
              
   (in thousands)
 APCo $ 3,677,116 $ 4,380,840 $ 3,726,251 $ 4,431,912
 I&M   2,131,501   2,402,581   2,057,675   2,339,344
 OPCo   3,860,044   4,453,479   4,054,148   4,665,739
 PSO   949,897   1,138,292   947,364   1,123,306
 SWEPCo   2,047,676   2,315,719   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 June 30, 2012
PSO         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 74 $ 5,245 $ - $ (4,596) $ 723
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 40 $ 11,662 $ - $ (4,702) $ 7,000
Cash Flow Hedges:              
 Commodity Hedges  -   141   -   -   141
Total Risk Management Liabilities $ 40 $ 11,803 $ - $ (4,702) $ 7,141

 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 December 31, 2011
PSO         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 97 $ 7,797 $ - $ (7,015) $ 879
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 53 $ 9,542 $ - $ (7,092) $ 2,503
Cash Flow Hedges:              
 Commodity Hedges  -   107   -   -   107
Total Risk Management Liabilities$ 53 $ 9,649 $ - $ (7,092) $ 2,610

(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.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(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, I&M and OPCo and coal contracts for PSO and SWEPCo.
Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2012 $ 7,981 $ 5,614 $ 11,767 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,210)   (2,258)   (4,734)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,711   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (11)   (8)   (16)   -   -
Purchases, Issuances and Settlements (c)   4,988   3,508   7,355   -   -
Transfers into Level 3 (d) (f)   1,301   915   1,919   -   -
Transfers out of Level 3 (e) (f)   (557)   (392)   (821)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   2,372   1,670   1,788   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Three Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2011 $ 5,472 $ 3,209 $ 6,893 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,219)   (1,910)   (4,096)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,149   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   4,814   2,856   6,126   -   -
Transfers into Level 3 (d) (f)   1,125   661   1,417   -   -
Transfers out of Level 3 (e) (f)   (213)   (125)   (269)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (2,608)   (1,511)   (4,397)   -   -
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

Six Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,313)   (3,590)   (7,533)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   7,035   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   52   34   71   -   -
Purchases, Issuances and Settlements (c)   11,499   7,811   16,397   -   -
Transfers into Level 3 (d) (f)   3,562   2,341   4,934   -   -
Transfers out of Level 3 (e) (f)   (4,676)   (3,028)   (6,388)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   5,769   4,218   1,787   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Six Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,489)   (1,473)   (3,158)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,949   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   3,881   2,311   4,955   -   -
Transfers into Level 3 (d) (f)   1,221   718   1,539   -   -
Transfers out of Level 3 (e) (f)   (2,853)   (1,713)   (3,648)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   480   229   (4,397)   (1)   (2)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

(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)       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]
  
Book Values and Fair Values of Long-term Debt
   June 30, 2012 December 31, 2011
 Company Book Value Fair Value Book Value Fair Value
              
   (in thousands)
 APCo $ 3,677,116 $ 4,380,840 $ 3,726,251 $ 4,431,912
 I&M   2,131,501   2,402,581   2,057,675   2,339,344
 OPCo   3,860,044   4,453,479   4,054,148   4,665,739
 PSO   949,897   1,138,292   947,364   1,123,306
 SWEPCo   2,047,676   2,315,719   1,728,637   2,019,094
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
June 30, 2012
SWEPCo         
  Level 1 Level 2 Level 3 Other Total
Assets:(in thousands)
                
Cash and Cash Equivalents (c)$ 13,515 $ - $ - $ 1,102 $ 14,617
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)  93   14,480   -   (12,908)   1,665
                
Total Assets $ 13,608 $ 14,480 $ - $ (11,806) $ 16,282
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 50 $ 21,162 $ - $ (13,004) $ 8,208
Cash Flow Hedges:              
 Commodity Hedges  -   136   -   -   136
Total Risk Management Liabilities $ 50 $ 21,298 $ - $ (13,004) $ 8,344

 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 December 31, 2011
SWEPCo         
  Level 1 Level 2 Level 3 Other Total
                
Assets:(in thousands)
                
Risk Management Assets              
Risk Management Commodity Contracts (a) (f)$ 122 $ 7,023 $ - $ (6,421) $ 724
Cash Flow Hedges:              
 Interest Rate/Foreign Currency Hedges  -   3   -   -   3
Total Risk Management Assets $ 122 $ 7,026 $ - $ (6,421) $ 727
                
Liabilities:              
                
Risk Management Liabilities              
Risk Management Commodity Contracts (a) (f)$ 66 $ 11,753 $ - $ (6,479) $ 5,340
Cash Flow Hedges:              
 Commodity Hedges  -   97   -   -   97
 Interest Rate/Foreign Currency Hedges  -   19,143   -   -   19,143
Total Risk Management Liabilities$ 66 $ 30,993 $ - $ (6,479) $ 24,580

(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.

(c)       Amounts in “Other” column primarily represent cash deposits with third parties. Level 1 and Level 2 amounts primarily represent investments in money market funds.

(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, I&M and OPCo and coal contracts for PSO and SWEPCo.
Changes in Fair Value of Net Trading Derivatives and Other Investments
Three Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2012 $ 7,981 $ 5,614 $ 11,767 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,210)   (2,258)   (4,734)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,711   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (11)   (8)   (16)   -   -
Purchases, Issuances and Settlements (c)   4,988   3,508   7,355   -   -
Transfers into Level 3 (d) (f)   1,301   915   1,919   -   -
Transfers out of Level 3 (e) (f)   (557)   (392)   (821)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   2,372   1,670   1,788   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Three Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of March 31, 2011 $ 5,472 $ 3,209 $ 6,893 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (3,219)   (1,910)   (4,096)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   1,149   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   4,814   2,856   6,126   -   -
Transfers into Level 3 (d) (f)   1,125   661   1,417   -   -
Transfers out of Level 3 (e) (f)   (213)   (125)   (269)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   (2,608)   (1,511)   (4,397)   -   -
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

Six Months Ended June 30, 2012 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2011 $ 1,971 $ 1,263 $ 2,666 $ - $ -
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (5,313)   (3,590)   (7,533)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   7,035   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   52   34   71   -   -
Purchases, Issuances and Settlements (c)   11,499   7,811   16,397   -   -
Transfers into Level 3 (d) (f)   3,562   2,341   4,934   -   -
Transfers out of Level 3 (e) (f)   (4,676)   (3,028)   (6,388)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   5,769   4,218   1,787   -   -
Balance as of June 30, 2012 $ 12,864 $ 9,049 $ 18,969 $ - $ -

Six Months Ended June 30, 2011 APCo I&M OPCo PSO SWEPCo
                 
  (in thousands)
Balance as of December 31, 2010 $ 5,131 $ 3,108 $ 6,583 $ 1 $ 2
Realized Gain (Loss) Included in Net Income               
 (or Changes in Net Assets) (a) (b)   (2,489)   (1,473)   (3,158)   -   -
Unrealized Gain (Loss) Included in Net               
 Income (or Changes in Net Assets) Relating               
 to Assets Still Held at the Reporting Date (a)   -   -   4,949   -   -
Realized and Unrealized Gains (Losses)               
 Included in Other Comprehensive Income   (50)   (30)   (64)   -   -
Purchases, Issuances and Settlements (c)   3,881   2,311   4,955   -   -
Transfers into Level 3 (d) (f)   1,221   718   1,539   -   -
Transfers out of Level 3 (e) (f)   (2,853)   (1,713)   (3,648)   -   -
Changes in Fair Value Allocated to Regulated               
 Jurisdictions (g)   480   229   (4,397)   (1)   (2)
Balance as of June 30, 2011 $ 5,321 $ 3,150 $ 6,759 $ - $ -

(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)       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.