Comprehensive Income

6 Months Ended

Jun. 30, 2013

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and six months endedJune 30, 2013. All amounts in the following tablesare presented net of related income taxes.

Changes in Accumulated Other Comprehensive Income (Loss) by Component
For the Three Months Ended June 30, 2013
		Cash Flow Hedges
				Interest Rate and		Securities		Pension
		Commodity		Foreign Currency		Available for Sale		and OPEB		Total
		(in millions)
Balance in AOCI as of March 31, 2013		$	12	$	(26)	$	5	$	(297)	$	(306)
Change in Fair Value Recognized in AOCI			(8)		(1)		-		-		(9)
Amounts Reclassified from AOCI			(3)		2		-		3		2
Net Current Period Other
	Comprehensive Income		(11)		1		-		3		(7)
Balance in AOCI as of June 30, 2013		$	1	$	(25)	$	5	$	(294)	$	(313)

Changes in Accumulated Other Comprehensive Income (Loss) by Component
For the Six Months Ended June 30, 2013
		Cash Flow Hedges
				Interest Rate and		Securities		Pension
		Commodity		Foreign Currency		Available for Sale		and OPEB		Total
		(in millions)
Balance in AOCI as of December 31, 2012		$	(8)	$	(30)	$	4	$	(303)	$	(337)
Change in Fair Value Recognized in AOCI			10		2		1		-		13
Amounts Reclassified from AOCI			(1)		3		-		9		11
Net Current Period Other
	Comprehensive Income		9		5		1		9		24
Balance in AOCI as of June 30, 2013		$	1	$	(25)	$	5	$	(294)	$	(313)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and six months endedJune 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

Reclassifications from Accumulated Other Comprehensive Income (Loss)
For the Three Months Ended June 30, 2013
		Amount of
		(Gain) Loss
		Reclassified
		from AOCI
Gains and Losses on Cash Flow Hedges		(in millions)
Commodity:
	Utility Operations Revenues	$	-
	Other Revenues		(2)
	Purchased Electricity for Resale		(2)
	Property, Plant and Equipment		-
	Regulatory Assets (a)		-
Subtotal - Commodity			(4)
Interest Rate and Foreign Currency:
	Interest Expense		2
Subtotal - Interest Rate and Foreign Currency			2
Reclassifications from AOCI, before Income Tax (Expense) Credit			(2)
Income Tax (Expense) Credit			(1)
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(1)
Gains and Losses on Available-for-Sale Securities
Interest Income			-
Interest Expense			-
Reclassifications from AOCI, before Income Tax (Expense) Credit			-
Income Tax (Expense) Credit			-
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			-
Amortization of Pension and OPEB
Prior Service Cost (Credit)			(4)
Actuarial (Gains)/Losses			9
Reclassifications from AOCI, before Income Tax (Expense) Credit			5
Income Tax (Expense) Credit			2
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			3
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	2

Reclassifications from Accumulated Other Comprehensive Income (Loss)
For the Six Months Ended June 30, 2013
		Amount of
		(Gain) Loss
		Reclassified
		from AOCI
Gains and Losses on Cash Flow Hedges		(in millions)
Commodity:
	Utility Operations Revenues	$	-
	Other Revenues		(5)
	Purchased Electricity for Resale		4
	Property, Plant and Equipment		-
	Regulatory Assets (a)		-
Subtotal - Commodity			(1)
Interest Rate and Foreign Currency:
	Interest Expense		4
Subtotal - Interest Rate and Foreign Currency			4
Reclassifications from AOCI, before Income Tax (Expense) Credit			3
Income Tax (Expense) Credit			1
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			2
Gains and Losses on Available-for-Sale Securities
Interest Income			-
Interest Expense			-
Reclassifications from AOCI, before Income Tax (Expense) Credit			-
Income Tax (Expense) Credit			-
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			-
Amortization of Pension and OPEB
Prior Service Cost (Credit)			(9)
Actuarial (Gains)/Losses			23
Reclassifications from AOCI, before Income Tax (Expense) Credit			14
Income Tax (Expense) Credit			5
Reclassifications from AOCI, Net of Income Tax (Expense) Credit			9
Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	11

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

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and six months endedJune 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended June 30, 2012
					Interest Rate
					and Foreign
			Commodity		Currency		Total
			(in millions)
Balance in AOCI as of March 31, 2012			$	(16)	$	(18)	$	(34)
Changes in Fair Value Recognized in AOCI				(3)		(13)		(16)
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		-		-		-
		Other Revenues		(2)		-		(2)
		Purchased Electricity for Resale		6		-		6
		Interest Expense		-		1		1
		Regulatory Assets (a)		1		-		1
Balance in AOCI as of June 30, 2012			$	(14)	$	(30)	$	(44)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Six Months Ended June 30, 2012
					Interest Rate
					and Foreign
			Commodity		Currency		Total
			(in millions)
Balance in AOCI as of December 31, 2011			$	(3)	$	(20)	$	(23)
Changes in Fair Value Recognized in AOCI				(23)		(12)		(35)
Amount of (Gain) or Loss Reclassified from AOCI
	to Statement of Income/within Balance Sheet:
		Utility Operations Revenues		-		-		-
		Other Revenues		(3)		-		(3)
		Purchased Electricity for Resale		13		-		13
		Interest Expense		-		2		2
		Regulatory Assets (a)		2		-		2
Balance in AOCI as of June 30, 2012			$	(14)	$	(30)	$	(44)

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

The following tables provide details of changes in unrealized gains and losses related to Securities Available for Sale and the reasons for changes for the three and six months endedJune 30,2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Securities Available for Sale
For the 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 Securities Available for Sale
For the 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

Appalachian Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and six months endedJune 30, 2013. All amounts in the following tablesare presented net of related income taxes.

APCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of March 31, 2013		$	361	$	2,330	$	(30,973)	$	(28,282)
	Change in Fair Value Recognized in AOCI			(63)		1		-		(62)
	Amounts Reclassified from AOCI			(101)		252		358		509
	Net Current Period Other
		Comprehensive Income		(164)		253		358		447
	Balance in AOCI as of June 30, 2013		$	197	$	2,583	$	(30,615)	$	(27,835)

APCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Six Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	(644)	$	2,077	$	(31,331)	$	(29,898)
	Change in Fair Value Recognized in AOCI			731		-		-		731
	Amounts Reclassified from AOCI			110		506		716		1,332
	Net Current Period Other
		Comprehensive Income		841		506		716		2,063
	Balance in AOCI as of June 30, 2013		$	197	$	2,583	$	(30,615)	$	(27,835)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and six months endedJune 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

APCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	2
		Purchased Electricity for Resale		(31)
		Other Operation Expense		(13)
		Maintenance Expense		(2)
		Property, Plant and Equipment		(5)
		Regulatory Assets (a)		(108)
	Subtotal - Commodity			(157)
	Interest Rate and Foreign Currency:
		Interest Expense		389
	Subtotal - Interest Rate and Foreign Currency			389
	Reclassifications from AOCI, before Income Tax (Expense) Credit			232
	Income Tax (Expense) Credit			81
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			151
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(1,283)
	Actuarial (Gains)/Losses			1,834
	Reclassifications from AOCI, before Income Tax (Expense) Credit			551
	Income Tax (Expense) Credit			193
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			358
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	509

APCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Six Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	22
		Purchased Electricity for Resale		26
		Other Operation Expense		(24)
		Maintenance Expense		(18)
		Property, Plant and Equipment		(19)
		Regulatory Assets (a)		181
	Subtotal - Commodity			168
	Interest Rate and Foreign Currency:
		Interest Expense		779
	Subtotal - Interest Rate and Foreign Currency			779
	Reclassifications from AOCI, before Income Tax (Expense) Credit			947
	Income Tax (Expense) Credit			331
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			616
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(2,565)
	Actuarial (Gains)/Losses			3,667
	Reclassifications from AOCI, before Income Tax (Expense) Credit			1,102
	Income Tax (Expense) Credit			386
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			716
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	1,332

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

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and six months endedJune 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(2,117)	$	(1,508)	$	(3,149)	$	67	$	66
Changes in Fair Value Recognized in AOCI					(403)		(234)		(525)		(155)		(149)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	1,293	$	(11,320)	$	9,114	$	7,029	$	(17,365)
Changes in Fair Value Recognized in AOCI					-		(7,844)		-		-		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(824)	$	(12,828)	$	5,965	$	7,096	$	(17,299)
Changes in Fair Value Recognized in AOCI					(403)		(8,078)		(525)		(155)		(150)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Six Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(2,248)		(1,628)		(3,402)		(16)		(17)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(4,848)		-		-		(2,777)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(2,248)		(6,476)		(3,402)		(16)		(2,794)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

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

Indiana Michigan Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and six months endedJune 30, 2013. All amounts in the following tablesare presented net of related income taxes.

I&M
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of March 31, 2013		$	236	$	(17,206)	$	(8,614)	$	(25,584)
	Change in Fair Value Recognized in AOCI			(40)		(1)		-		(41)
	Amounts Reclassified from AOCI			(49)		411		175		537
	Net Current Period Other
		Comprehensive Income		(89)		410		175		496
	Balance in AOCI as of June 30, 2013		$	147	$	(16,796)	$	(8,439)	$	(25,088)

I&M
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Six Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	(446)	$	(19,647)	$	(8,790)	$	(28,883)
	Change in Fair Value Recognized in AOCI			492		2,248		-		2,740
	Amounts Reclassified from AOCI			101		603		351		1,055
	Net Current Period Other
		Comprehensive Income		593		2,851		351		3,795
	Balance in AOCI as of June 30, 2013		$	147	$	(16,796)	$	(8,439)	$	(25,088)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and six months endedJune 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

I&M
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	32
		Purchased Electricity for Resale		(81)
		Other Operation Expense		(8)
		Maintenance Expense		(2)
		Property, Plant and Equipment		(3)
		Regulatory Assets (a)		(12)
	Subtotal - Commodity			(74)
	Interest Rate and Foreign Currency:
		Interest Expense		631
	Subtotal - Interest Rate and Foreign Currency			631
	Reclassifications from AOCI, before Income Tax (Expense) Credit			557
	Income Tax (Expense) Credit			195
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			362
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(198)
	Actuarial (Gains)/Losses			468
	Reclassifications from AOCI, before Income Tax (Expense) Credit			270
	Income Tax (Expense) Credit			95
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			175
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	537

I&M
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Six Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	84
		Purchased Electricity for Resale		68
		Other Operation Expense		(15)
		Maintenance Expense		(9)
		Property, Plant and Equipment		(10)
		Regulatory Assets (a)		38
	Subtotal - Commodity			156
	Interest Rate and Foreign Currency:
		Interest Expense		927
	Subtotal - Interest Rate and Foreign Currency			927
	Reclassifications from AOCI, before Income Tax (Expense) Credit			1,083
	Income Tax (Expense) Credit			379
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			704
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(397)
	Actuarial (Gains)/Losses			937
	Reclassifications from AOCI, before Income Tax (Expense) Credit			540
	Income Tax (Expense) Credit			189
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			351
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	1,055

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

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and six months endedJune 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(2,117)	$	(1,508)	$	(3,149)	$	67	$	66
Changes in Fair Value Recognized in AOCI					(403)		(234)		(525)		(155)		(149)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	1,293	$	(11,320)	$	9,114	$	7,029	$	(17,365)
Changes in Fair Value Recognized in AOCI					-		(7,844)		-		-		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(824)	$	(12,828)	$	5,965	$	7,096	$	(17,299)
Changes in Fair Value Recognized in AOCI					(403)		(8,078)		(525)		(155)		(150)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Six Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(2,248)		(1,628)		(3,402)		(16)		(17)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(4,848)		-		-		(2,777)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(2,248)		(6,476)		(3,402)		(16)		(2,794)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

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

Ohio Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and six months endedJune 30, 2013. All amounts in the following tablesare presented net of related income taxes.

OPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of March 31, 2013		$	494	$	7,755	$	(169,639)	$	(161,390)
	Change in Fair Value Recognized in AOCI			(109)		-		-		(109)
	Amounts Reclassified from AOCI			(96)		(340)		3,270		2,834
	Net Current Period Other
		Comprehensive Income		(205)		(340)		3,270		2,725
	Balance in AOCI as of June 30, 2013		$	289	$	7,415	$	(166,369)	$	(158,665)

OPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Six Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	(912)	$	8,095	$	(172,908)	$	(165,725)
	Change in Fair Value Recognized in AOCI			993		-		-		993
	Amounts Reclassified from AOCI			208		(680)		6,539		6,067
	Net Current Period Other
		Comprehensive Income		1,201		(680)		6,539		7,060
	Balance in AOCI as of June 30, 2013		$	289	$	7,415	$	(166,369)	$	(158,665)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and six months endedJune 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

OPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	81
		Purchased Electricity for Resale		(202)
		Other Operation Expense		(19)
		Maintenance Expense		(3)
		Property, Plant and Equipment		(4)
	Subtotal - Commodity			(147)
	Interest Rate and Foreign Currency:
		Depreciation and Amortization Expense		1
		Interest Expense		(525)
	Subtotal - Interest Rate and Foreign Currency			(524)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(671)
	Income Tax (Expense) Credit			(235)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(436)
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(1,469)
	Actuarial (Gains)/Losses			6,499
	Reclassifications from AOCI, before Income Tax (Expense) Credit			5,030
	Income Tax (Expense) Credit			1,760
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			3,270
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	2,834

OPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Six Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Electric Generation, Transmission and Distribution Revenues	$	215
		Purchased Electricity for Resale		180
		Other Operation Expense		(37)
		Maintenance Expense		(15)
		Property, Plant and Equipment		(23)
	Subtotal - Commodity			320
	Interest Rate and Foreign Currency:
		Depreciation and Amortization Expense		3
		Interest Expense		(1,049)
	Subtotal - Interest Rate and Foreign Currency			(1,046)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(726)
	Income Tax (Expense) Credit			(254)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(472)
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(2,937)
	Actuarial (Gains)/Losses			12,996
	Reclassifications from AOCI, before Income Tax (Expense) Credit			10,059
	Income Tax (Expense) Credit			3,520
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			6,539
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	6,067

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and six months endedJune 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(2,117)	$	(1,508)	$	(3,149)	$	67	$	66
Changes in Fair Value Recognized in AOCI					(403)		(234)		(525)		(155)		(149)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	1,293	$	(11,320)	$	9,114	$	7,029	$	(17,365)
Changes in Fair Value Recognized in AOCI					-		(7,844)		-		-		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(824)	$	(12,828)	$	5,965	$	7,096	$	(17,299)
Changes in Fair Value Recognized in AOCI					(403)		(8,078)		(525)		(155)		(150)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Six Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(2,248)		(1,628)		(3,402)		(16)		(17)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(4,848)		-		-		(2,777)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(2,248)		(6,476)		(3,402)		(16)		(2,794)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

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

Public Service Co Of Oklahoma [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and six months endedJune 30, 2013. All amounts in the following tablesare presented net of related income taxes.

PSO
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and
			Commodity		Foreign Currency		Total
			(in thousands)
	Balance in AOCI as of March 31, 2013		$	44	$	6,270	$	6,314
	Change in Fair Value Recognized in AOCI			(61)		1		(60)
	Amounts Reclassified from AOCI			(4)		(190)		(194)
	Net Current Period Other
		Comprehensive Income		(65)		(189)		(254)
	Balance in AOCI as of June 30, 2013		$	(21)	$	6,081	$	6,060

PSO
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Six Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and
			Commodity		Foreign Currency		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	21	$	6,460	$	6,481
	Change in Fair Value Recognized in AOCI			(25)		1		(24)
	Amounts Reclassified from AOCI			(17)		(380)		(397)
	Net Current Period Other
		Comprehensive Income		(42)		(379)		(421)
	Balance in AOCI as of June 30, 2013		$	(21)	$	6,081	$	6,060

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and six months endedJune 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

PSO
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(6)
		Maintenance Expense		-
		Property, Plant and Equipment		-
	Subtotal - Commodity			(6)
	Interest Rate and Foreign Currency:
		Interest Expense		(292)
	Subtotal - Interest Rate and Foreign Currency			(292)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(298)
	Income Tax (Expense) Credit			(104)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	(194)

PSO
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Six Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(15)
		Maintenance Expense		(4)
		Property, Plant and Equipment		(7)
	Subtotal - Commodity			(26)
	Interest Rate and Foreign Currency:
		Interest Expense		(584)
	Subtotal - Interest Rate and Foreign Currency			(584)
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(610)
	Income Tax (Expense) Credit			(213)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	(397)

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and six months endedJune 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(2,117)	$	(1,508)	$	(3,149)	$	67	$	66
Changes in Fair Value Recognized in AOCI					(403)		(234)		(525)		(155)		(149)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	1,293	$	(11,320)	$	9,114	$	7,029	$	(17,365)
Changes in Fair Value Recognized in AOCI					-		(7,844)		-		-		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(824)	$	(12,828)	$	5,965	$	7,096	$	(17,299)
Changes in Fair Value Recognized in AOCI					(403)		(8,078)		(525)		(155)		(150)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Six Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(2,248)		(1,628)		(3,402)		(16)		(17)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(4,848)		-		-		(2,777)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(2,248)		(6,476)		(3,402)		(16)		(2,794)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

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

Southwestern Electric Power Co [Member]

Comprehensive Income

2. COMPREHENSIVE INCOME

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCIfor thethree and six months endedJune 30, 2013. All amounts in the following tablesare presented net of related income taxes.

SWEPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Three Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of March 31, 2013		$	51	$	(15,004)	$	(2,374)	$	(17,327)
	Change in Fair Value Recognized in AOCI			(71)		-		-		(71)
	Amounts Reclassified from AOCI			(6)		567		(64)		497
	Net Current Period Other
		Comprehensive Income		(77)		567		(64)		426
	Balance in AOCI as of June 30, 2013		$	(26)	$	(14,437)	$	(2,438)	$	(16,901)

SWEPCo
	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	For the Six Months Ended June 30, 2013
			Cash Flow Hedges
					Interest Rate and		Pension
			Commodity		Foreign Currency		and OPEB		Total
			(in thousands)
	Balance in AOCI as of December 31, 2012		$	22	$	(15,571)	$	(2,311)	$	(17,860)
	Change in Fair Value Recognized in AOCI			(27)		-		-		(27)
	Amounts Reclassified from AOCI			(21)		1,134		(127)		986
	Net Current Period Other
		Comprehensive Income		(48)		1,134		(127)		959
	Balance in AOCI as of June 30, 2013		$	(26)	$	(14,437)	$	(2,438)	$	(16,901)

Reclassifications Out of Accumulated Other Comprehensive Income

The following tables provide details of reclassifications from AOCI for the three and six months endedJune 30, 2013. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 6 for additional details.

SWEPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Three Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(6)
		Maintenance Expense		(1)
		Property, Plant and Equipment		(1)
	Subtotal - Commodity			(8)
	Interest Rate and Foreign Currency:
		Interest Expense		872
	Subtotal - Interest Rate and Foreign Currency			872
	Reclassifications from AOCI, before Income Tax (Expense) Credit			864
	Income Tax (Expense) Credit			303
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			561
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(447)
	Actuarial (Gains)/Losses			348
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(99)
	Income Tax (Expense) Credit			(35)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(64)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	497

SWEPCo
	Reclassifications from Accumulated Other Comprehensive Income (Loss)
	For the Six Months Ended June 30, 2013
			Amount of
			(Gain) Loss
			Reclassified
			from AOCI
	Gains and Losses on Cash Flow Hedges		(in thousands)
	Commodity:
		Other Operation Expense	$	(16)
		Maintenance Expense		(7)
		Property, Plant and Equipment		(8)
	Subtotal - Commodity			(31)
	Interest Rate and Foreign Currency:
		Interest Expense		1,744
	Subtotal - Interest Rate and Foreign Currency			1,744
	Reclassifications from AOCI, before Income Tax (Expense) Credit			1,713
	Income Tax (Expense) Credit			600
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			1,113
	Amortization of Pension and OPEB
	Prior Service Cost (Credit)			(892)
	Actuarial (Gains)/Losses			696
	Reclassifications from AOCI, before Income Tax (Expense) Credit			(196)
	Income Tax (Expense) Credit			(69)
	Reclassifications from AOCI, Net of Income Tax (Expense) Credit			(127)
	Total Reclassifications from AOCI, Net of Income Tax (Expense) Credit		$	986

The following tables provide details on designated, effective cash flow hedges included in Accumulated Other Comprehensive Income (Loss) on thecondensed balance sheets and the reasons for changes in cash flow hedges for the three and six months endedJune 30, 2012. All amounts in the following tables are presented net of related income taxes.

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Three Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(2,117)	$	(1,508)	$	(3,149)	$	67	$	66
Changes in Fair Value Recognized in AOCI					(403)		(234)		(525)		(155)		(149)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	1,293	$	(11,320)	$	9,114	$	7,029	$	(17,365)
Changes in Fair Value Recognized in AOCI					-		(7,844)		-		-		(1)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of March 31, 2012				$	(824)	$	(12,828)	$	5,965	$	7,096	$	(17,299)
Changes in Fair Value Recognized in AOCI					(403)		(8,078)		(525)		(155)		(150)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			157		419		1,099		-		-
		Other Operation Expense			(14)		(8)		(19)		(9)		(7)
		Maintenance Expense			(6)		(3)		(8)		(2)		(2)
		Depreciation and Amortization
			Expense		-		-		1		-		-
		Interest Expense			269		149		(341)		(190)		560
		Property, Plant and Equipment			(10)		(6)		(13)		(3)		(5)
		Regulatory Assets (a)			576		103		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges
For the Six Months Ended June 30, 2012
Commodity Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(1,309)	$	(819)	$	(1,748)	$	(69)	$	(62)
Changes in Fair Value Recognized in AOCI					(2,248)		(1,628)		(3,402)		(16)		(17)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(1,820)	$	(1,246)	$	(2,639)	$	(102)	$	(97)
Interest Rate and
Foreign Currency Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	1,024	$	(14,465)	$	9,454	$	7,218	$	(15,462)
Changes in Fair Value Recognized in AOCI					-		(4,848)		-		-		(2,777)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
Balance in AOCI as of June 30, 2012				$	1,562	$	(19,015)	$	8,774	$	6,839	$	(16,806)
Total Contracts				APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Balance in AOCI as of December 31, 2011				$	(285)	$	(15,284)	$	7,706	$	7,149	$	(15,524)
Changes in Fair Value Recognized in AOCI					(2,248)		(6,476)		(3,402)		(16)		(2,794)
Amount of (Gain) or Loss Reclassified
	from AOCI to Statement of Income/within
	Balance Sheet:
		Electric Generation, Transmission, and
			Distribution Revenues		(3)		(9)		(24)		-		-
		Purchased Electricity for Resale			376		986		2,585		-		-
		Other Operation Expense			(16)		(10)		(24)		(11)		(9)
		Maintenance Expense			(9)		(4)		(10)		(2)		(3)
		Depreciation and Amortization
			Expense		-		-		2		-		-
		Interest Expense			538		298		(682)		(379)		1,433
		Property, Plant and Equipment			(12)		(7)		(16)		(4)		(6)
		Regulatory Assets (a)			1,401		245		-		-		-
Balance in AOCI as of June 30, 2012				$	(258)	$	(20,261)	$	6,135	$	6,737	$	(16,903)

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