Notional Volume of Derivative Instruments

		Volume
		March 31,		December 31,		Unit of
		2013		2012		Measure
Primary Risk Exposure		(in millions)
Commodity:
	Power		406		498	MWhs
	Coal		7		10	Tons
	Natural Gas		176		147	MMBtus
	Heating Oil and Gasoline		6		6	Gallons
	Interest Rate	$	214	$	235	USD

Interest Rate and Foreign Currency		$	874	$	1,199	USD

Amount of Gain Loss Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
March 31, 2013

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

		(in millions)
Current Risk Management Assets		$	509	$	39	$	4	$	552	$	(390)	$	162
Long-term Risk Management Assets			471		6		1		478		(137)		341
Total Assets			980		45		5		1,030		(527)		503

Current Risk Management Liabilities			467		23		1		491		(397)		94
Long-term Risk Management Liabilities			329		2		6		337		(152)		185
Total Liabilities			796		25		7		828		(549)		279

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	184	$	20	$	(2)	$	202	$	22	$	224

Fair Value of Derivative Instruments
December 31, 2012

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

		(in millions)
Current Risk Management Assets		$	589	$	32	$	3	$	624	$	(433)	$	191
Long-term Risk Management Assets			528		5		1		534		(166)		368
Total Assets			1,117		37		4		1,158		(599)		559

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

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

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

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

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

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013 and 2012

Location of Gain (Loss)	2013			2012
	(in millions)
Utility Operations Revenues	$	8	$	10
Other Revenues		14		3
Regulatory Assets (a)		2		(21)
Regulatory Liabilities (a)		(6)		14
Total Gain on Risk Management Contracts	$	18	$	6

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

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

				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	24	$	-	$	24
Hedging Liabilities (a)			4		2		6
AOCI Gain (Loss) Net of Tax			12		(26)		(14)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		10		(4)		6

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

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

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

Collateral Required Under Various Triggering Events

		March 31,		December 31,
		2013		2012
		(in millions)
Liabilities for Derivative Contracts with Credit Downgrade Triggers		$	5	$	7
Amount of Collateral AEP Subsidiaries Would Have Been
	Required to Post		37		32
Amount Attributable to RTO and ISO Activities			35		31

	March 31,		December 31,
	2013		2012
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
Netting Arrangements	$	366	$	469
Amount of Cash Collateral Posted		12		8
Additional Settlement Liability if Cross Default Provision is Triggered		231		328

Appalachian Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		62,679		43,390		88,625		8		9
	Coal		Tons		932		2,175		2,213		1,489		789
	Natural Gas		MMBtus		8,213		5,676		11,613		-		-
	Heating Oil and
		Gasoline	Gallons		1,177		580		1,386		589		724
	Interest Rate		USD	$	22,108	$	15,278	$	31,259	$	-	$	-

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

Notional Volume of Derivative Instruments
December 31, 2012

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

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

	March 31, 2013				December 31, 2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,837	$	4,888	$	1,262	$	11,029
I&M		1,270		3,378		867		7,576
OPCo		2,598		6,912		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		2		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

APCo
Fair Value of Derivative Instruments
March 31, 2013

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

		(in thousands)
Current Risk Management Assets		$	86,551	$	1,189	$	-	$	87,740	$	(64,613)	$	23,127
Long-term Risk Management Assets			39,728		131		-		39,859		(15,843)		24,016
Total Assets			126,279		1,320		-		127,599		(80,456)		47,143

Current Risk Management Liabilities			78,306		651		-		78,957		(66,909)		12,048
Long-term Risk Management Liabilities			29,230		132		-		29,362		(16,598)		12,764
Total Liabilities			107,536		783		-		108,319		(83,507)		24,812

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	18,743	$	537	$	-	$	19,280	$	3,051	$	22,331

APCo
Fair Value of Derivative Instruments
December 31, 2012

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

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

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

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

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

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

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	679	$	4,947	$	1,714	$	47	$	28
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		486		(1,205)		2,010		271
Regulatory Liabilities (a)			(466)		(5,182)		-		1		96
Total Gain (Loss) on Risk Management
	Contracts	$	213	$	251	$	509	$	2,058	$	395

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(327)	$	2,813	$	8,493	$	(5)	$	(51)
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(3,481)		(3,110)		(3,131)		(5,201)		(6,727)
Regulatory Liabilities (a)			6,409		6,726		-		27		21
Total Gain (Loss) on Risk Management
	Contracts	$	2,601	$	6,429	$	5,362	$	(5,179)	$	(6,757)

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

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

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	987	$	-	$	450	$	-	$	361	$	2,330
I&M		660		-		311		-		236		(17,206)
OPCo		1,372		-		636		-		494		7,755
PSO		61		-		1		-		44		6,270
SWEPCo		73		-		2		-		51		(15,004)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	363	$	(1,013)		21
I&M		235		(1,640)		21
OPCo		495		1,359		21
PSO		41		759		21
SWEPCo		49		(2,267)		21

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

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

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

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

Collateral Required Under Various Triggering Events

	March 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	1,377	$	3,635	$	3,531
I&M		951		2,512		2,440
OPCo		1,946		5,140		4,992
PSO		-		625		562
SWEPCo		-		736		662

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

	March 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	32,626	$	-	$	20,446
I&M		22,546		-		14,129
OPCo		46,131		-		28,909
PSO		11		-		9
SWEPCo		12		-		11

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

Indiana Michigan Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		62,679		43,390		88,625		8		9
	Coal		Tons		932		2,175		2,213		1,489		789
	Natural Gas		MMBtus		8,213		5,676		11,613		-		-
	Heating Oil and
		Gasoline	Gallons		1,177		580		1,386		589		724
	Interest Rate		USD	$	22,108	$	15,278	$	31,259	$	-	$	-

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

Notional Volume of Derivative Instruments
December 31, 2012

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

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

	March 31, 2013				December 31, 2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,837	$	4,888	$	1,262	$	11,029
I&M		1,270		3,378		867		7,576
OPCo		2,598		6,912		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		2		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

I&M
Fair Value of Derivative Instruments
March 31, 2013

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

		(in thousands)
Current Risk Management Assets		$	61,736	$	800	$	-	$	62,536	$	(44,450)	$	18,086
Long-term Risk Management Assets			27,454		89		-		27,543		(10,948)		16,595
Total Assets			89,190		889		-		90,079		(55,398)		34,681

Current Risk Management Liabilities			54,278		450		-		54,728		(46,037)		8,691
Long-term Risk Management Liabilities			20,876		90		-		20,966		(11,469)		9,497
Total Liabilities			75,154		540		-		75,694		(57,506)		18,188

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	14,036	$	349	$	-	$	14,385	$	2,108	$	16,493

I&M
Fair Value of Derivative Instruments
December 31, 2012

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

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

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

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

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

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

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	679	$	4,947	$	1,714	$	47	$	28
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		486		(1,205)		2,010		271
Regulatory Liabilities (a)			(466)		(5,182)		-		1		96
Total Gain (Loss) on Risk Management
	Contracts	$	213	$	251	$	509	$	2,058	$	395

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(327)	$	2,813	$	8,493	$	(5)	$	(51)
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(3,481)		(3,110)		(3,131)		(5,201)		(6,727)
Regulatory Liabilities (a)			6,409		6,726		-		27		21
Total Gain (Loss) on Risk Management
	Contracts	$	2,601	$	6,429	$	5,362	$	(5,179)	$	(6,757)

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

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

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	987	$	-	$	450	$	-	$	361	$	2,330
I&M		660		-		311		-		236		(17,206)
OPCo		1,372		-		636		-		494		7,755
PSO		61		-		1		-		44		6,270
SWEPCo		73		-		2		-		51		(15,004)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	363	$	(1,013)		21
I&M		235		(1,640)		21
OPCo		495		1,359		21
PSO		41		759		21
SWEPCo		49		(2,267)		21

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

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

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

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

Collateral Required Under Various Triggering Events

	March 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	1,377	$	3,635	$	3,531
I&M		951		2,512		2,440
OPCo		1,946		5,140		4,992
PSO		-		625		562
SWEPCo		-		736		662

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

	March 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	32,626	$	-	$	20,446
I&M		22,546		-		14,129
OPCo		46,131		-		28,909
PSO		11		-		9
SWEPCo		12		-		11

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

Ohio Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		62,679		43,390		88,625		8		9
	Coal		Tons		932		2,175		2,213		1,489		789
	Natural Gas		MMBtus		8,213		5,676		11,613		-		-
	Heating Oil and
		Gasoline	Gallons		1,177		580		1,386		589		724
	Interest Rate		USD	$	22,108	$	15,278	$	31,259	$	-	$	-

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

Notional Volume of Derivative Instruments
December 31, 2012

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

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

	March 31, 2013				December 31, 2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,837	$	4,888	$	1,262	$	11,029
I&M		1,270		3,378		867		7,576
OPCo		2,598		6,912		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		2		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

OPCo
Fair Value of Derivative Instruments
March 31, 2013

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

		(in thousands)
Current Risk Management Assets		$	126,082	$	1,657	$	-	$	127,739	$	(94,258)	$	33,481
Long-term Risk Management Assets			56,173		184		-		56,357		(22,401)		33,956
Total Assets			182,255		1,841		-		184,096		(116,659)		67,437

Current Risk Management Liabilities			114,172		919		-		115,091		(97,505)		17,586
Long-term Risk Management Liabilities			41,330		186		-		41,516		(23,468)		18,048
Total Liabilities			155,502		1,105		-		156,607		(120,973)		35,634

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	26,753	$	736	$	-	$	27,489	$	4,314	$	31,803

OPCo
Fair Value of Derivative Instruments
December 31, 2012

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

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

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

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

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

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

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	679	$	4,947	$	1,714	$	47	$	28
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		486		(1,205)		2,010		271
Regulatory Liabilities (a)			(466)		(5,182)		-		1		96
Total Gain (Loss) on Risk Management
	Contracts	$	213	$	251	$	509	$	2,058	$	395

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(327)	$	2,813	$	8,493	$	(5)	$	(51)
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(3,481)		(3,110)		(3,131)		(5,201)		(6,727)
Regulatory Liabilities (a)			6,409		6,726		-		27		21
Total Gain (Loss) on Risk Management
	Contracts	$	2,601	$	6,429	$	5,362	$	(5,179)	$	(6,757)

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

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

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	987	$	-	$	450	$	-	$	361	$	2,330
I&M		660		-		311		-		236		(17,206)
OPCo		1,372		-		636		-		494		7,755
PSO		61		-		1		-		44		6,270
SWEPCo		73		-		2		-		51		(15,004)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	363	$	(1,013)		21
I&M		235		(1,640)		21
OPCo		495		1,359		21
PSO		41		759		21
SWEPCo		49		(2,267)		21

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

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

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

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

Collateral Required Under Various Triggering Events

	March 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	1,377	$	3,635	$	3,531
I&M		951		2,512		2,440
OPCo		1,946		5,140		4,992
PSO		-		625		562
SWEPCo		-		736		662

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

	March 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	32,626	$	-	$	20,446
I&M		22,546		-		14,129
OPCo		46,131		-		28,909
PSO		11		-		9
SWEPCo		12		-		11

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

Public Service Co Of Oklahoma [Member]

Notional Volume of Derivative Instruments
March 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		62,679		43,390		88,625		8		9
	Coal		Tons		932		2,175		2,213		1,489		789
	Natural Gas		MMBtus		8,213		5,676		11,613		-		-
	Heating Oil and
		Gasoline	Gallons		1,177		580		1,386		589		724
	Interest Rate		USD	$	22,108	$	15,278	$	31,259	$	-	$	-

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

Notional Volume of Derivative Instruments
December 31, 2012

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

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

	March 31, 2013				December 31, 2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,837	$	4,888	$	1,262	$	11,029
I&M		1,270		3,378		867		7,576
OPCo		2,598		6,912		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		2		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

PSO
Fair Value of Derivative Instruments
March 31, 2013

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

		(in thousands)
Current Risk Management Assets		$	1,723	$	57	$	-	$	1,780	$	(1,068)	$	712
Long-term Risk Management Assets			-		4		-		4		-		4
Total Assets			1,723		61		-		1,784		(1,068)		716

Current Risk Management Liabilities			4,074		-		-		4,074		(1,068)		3,006
Long-term Risk Management Liabilities			-		1		-		1		(1)		-
Total Liabilities			4,074		1		-		4,075		(1,069)		3,006

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(2,351)	$	60	$	-	$	(2,291)	$	1	$	(2,290)

PSO
Fair Value of Derivative Instruments
December 31, 2012

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

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

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

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

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

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

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	679	$	4,947	$	1,714	$	47	$	28
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		486		(1,205)		2,010		271
Regulatory Liabilities (a)			(466)		(5,182)		-		1		96
Total Gain (Loss) on Risk Management
	Contracts	$	213	$	251	$	509	$	2,058	$	395

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(327)	$	2,813	$	8,493	$	(5)	$	(51)
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(3,481)		(3,110)		(3,131)		(5,201)		(6,727)
Regulatory Liabilities (a)			6,409		6,726		-		27		21
Total Gain (Loss) on Risk Management
	Contracts	$	2,601	$	6,429	$	5,362	$	(5,179)	$	(6,757)

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

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

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	987	$	-	$	450	$	-	$	361	$	2,330
I&M		660		-		311		-		236		(17,206)
OPCo		1,372		-		636		-		494		7,755
PSO		61		-		1		-		44		6,270
SWEPCo		73		-		2		-		51		(15,004)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	363	$	(1,013)		21
I&M		235		(1,640)		21
OPCo		495		1,359		21
PSO		41		759		21
SWEPCo		49		(2,267)		21

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

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

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

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

Collateral Required Under Various Triggering Events

	March 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	1,377	$	3,635	$	3,531
I&M		951		2,512		2,440
OPCo		1,946		5,140		4,992
PSO		-		625		562
SWEPCo		-		736		662

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

	March 31, 2013
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	32,626	$	-	$	20,446
I&M		22,546		-		14,129
OPCo		46,131		-		28,909
PSO		11		-		9
SWEPCo		12		-		11

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

Southwestern Electric Power Co [Member]

Notional Volume of Derivative Instruments
March 31, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		62,679		43,390		88,625		8		9
	Coal		Tons		932		2,175		2,213		1,489		789
	Natural Gas		MMBtus		8,213		5,676		11,613		-		-
	Heating Oil and
		Gasoline	Gallons		1,177		580		1,386		589		724
	Interest Rate		USD	$	22,108	$	15,278	$	31,259	$	-	$	-

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

Notional Volume of Derivative Instruments
December 31, 2012

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

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

	March 31, 2013				December 31, 2012
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in thousands)
APCo	$	1,837	$	4,888	$	1,262	$	11,029
I&M		1,270		3,378		867		7,576
OPCo		2,598		6,912		1,774		15,500
PSO		-		1		-		-
SWEPCo		-		2		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

SWEPCo
Fair Value of Derivative Instruments
March 31, 2013

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

		(in thousands)
Current Risk Management Assets		$	2,765	$	69	$	-	$	2,834	$	(2,107)	$	727
Long-term Risk Management Assets			-		4		-		4		-		4
Total Assets			2,765		73		-		2,838		(2,107)		731

Current Risk Management Liabilities			2,931		-		-		2,931		(2,107)		824
Long-term Risk Management Liabilities			-		2		-		2		(2)		-
Total Liabilities			2,931		2		-		2,933		(2,109)		824

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(166)	$	71	$	-	$	(95)	$	2	$	(93)

SWEPCo
Fair Value of Derivative Instruments
December 31, 2012

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

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

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

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

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

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

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	679	$	4,947	$	1,714	$	47	$	28
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		486		(1,205)		2,010		271
Regulatory Liabilities (a)			(466)		(5,182)		-		1		96
Total Gain (Loss) on Risk Management
	Contracts	$	213	$	251	$	509	$	2,058	$	395

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended March 31, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(327)	$	2,813	$	8,493	$	(5)	$	(51)
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(3,481)		(3,110)		(3,131)		(5,201)		(6,727)
Regulatory Liabilities (a)			6,409		6,726		-		27		21
Total Gain (Loss) on Risk Management
	Contracts	$	2,601	$	6,429	$	5,362	$	(5,179)	$	(6,757)

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

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

	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
			Interest Rate				Interest Rate				Interest Rate
			and Foreign				and Foreign				and Foreign
Company	Commodity		Currency		Commodity		Currency		Commodity		Currency
	(in thousands)
APCo	$	987	$	-	$	450	$	-	$	361	$	2,330
I&M		660		-		311		-		236		(17,206)
OPCo		1,372		-		636		-		494		7,755
PSO		61		-		1		-		44		6,270
SWEPCo		73		-		2		-		51		(15,004)

	Expected to be Reclassified to
	Net Income During the Next
	Twelve Months
					Maximum Term for
			Interest Rate		Exposure to
			and Foreign		Variability of Future
Company	Commodity		Currency		Cash Flows
	(in thousands)				(in months)
APCo	$	363	$	(1,013)		21
I&M		235		(1,640)		21
OPCo		495		1,359		21
PSO		41		759		21
SWEPCo		49		(2,267)		21

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

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

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

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

Collateral Required Under Various Triggering Events

	March 31, 2013
	Liabilities for		Amount of Collateral the		Amount
	Derivative Contracts		Registrant Subsidiaries		Attributable to
	with Credit		Would Have Been		RTO and ISO
Company	Downgrade Triggers		Required to Post		Activities
	(in thousands)
APCo	$	1,377	$	3,635	$	3,531
I&M		951		2,512		2,440
OPCo		1,946		5,140		4,992
PSO		-		625		562
SWEPCo		-		736		662

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