Notional Volume of Derivative Instruments

		Volume
		September 30,		December 31,		Unit of
		2013		2012		Measure
Primary Risk Exposure		(in millions)
Commodity:
	Power		464		498	MWhs
	Coal		6		10	Tons
	Natural Gas		141		147	MMBtus
	Heating Oil and Gasoline		5		6	Gallons
	Interest Rate	$	201	$	235	USD

Interest Rate and Foreign Currency		$	820	$	1,199	USD

Amount of Gain Loss Recognized on Risk Management Contracts

Fair Value of Derivative Instruments
September 30, 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		$	441	$	19	$	4	$	464	$	(293)	$	171
Long-term Risk Management Assets			433		6		1		440		(126)		314
Total Assets			874		25		5		904		(419)		485

Current Risk Management Liabilities			389		23		1		413		(311)		102
Long-term Risk Management Liabilities			301		4		13		318		(136)		182
Total Liabilities			690		27		14		731		(447)		284

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	184	$	(2)	$	(9)	$	173	$	28	$	201

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 and Nine Months Ended September 30, 2013 and 2012

	Three Months Ended September 30,				Nine Months Ended September 30,
Location of Gain (Loss)	2013		2012		2013		2012
	(in millions)
Utility Operations Revenues	$	4	$	5	$	17	$	19
Other Revenues		9		20		39		28
Regulatory Assets (a)		-		2		(3)		(35)
Regulatory Liabilities (a)		(5)		(14)		(10)		12
Total Gain (Loss) on Risk
Management Contracts	$	8	$	13	$	43	$	24

(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
September 30, 2013

				Interest Rate
				and Foreign
		Commodity		Currency		Total
		(in millions)
Hedging Assets (a)		$	9	$	-	$	9
Hedging Liabilities (a)			11		2		13
AOCI Gain (Loss) Net of Tax			(1)		(24)		(25)
Portion Expected to be Reclassified to Net
	Income During the Next Twelve Months		(2)		(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

		September 30,		December 31,
		2013		2012
		(in millions)
Liabilities for Derivative Contracts with Credit Downgrade Triggers		$	3	$	7
Amount of Collateral AEP Subsidiaries Would Have Been
	Required to Post		39		32
Amount Attributable to RTO and ISO Activities			38		31

	September 30,		December 31,
	2013		2012
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual
Netting Arrangements	$	341	$	469
Amount of Cash Collateral Posted		1		8
Additional Settlement Liability if Cross Default Provision is Triggered		258		328

Appalachian Power Co [Member]

Notional Volume of Derivative Instruments
September 30, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		75,861		49,918		104,093		8		10
	Coal		Tons		282		3,980		813		2,075		1,229
	Natural Gas		MMBtus		4,121		2,711		5,654		-		-
	Heating Oil and
		Gasoline	Gallons		981		484		1,155		491		603
	Interest Rate		USD	$	16,501	$	10,858	$	22,642	$	-	$	-

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	$	-	$	-	$	-

	September 30, 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	$	116	$	5,608	$	1,262	$	11,029
I&M		76		3,688		867		7,576
OPCo		159		7,693		1,774		15,500
PSO		-		7		-		-
SWEPCo		-		8		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

APCo
Fair Value of Derivative Instruments
September 30, 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		$	68,593	$	233	$	-	$	68,826	$	(44,276)	$	24,550
Long-term Risk Management Assets			32,501		226		-		32,727		(11,888)		20,839
Total Assets			101,094		459		-		101,553		(56,164)		45,389

Current Risk Management Liabilities			59,793		567		-		60,360		(48,719)		11,641
Long-term Risk Management Liabilities			25,003		15		-		25,018		(12,937)		12,081
Total Liabilities			84,796		582		-		85,378		(61,656)		23,722

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	16,298	$	(123)	$	-	$	16,175	$	5,492	$	21,667

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 September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	746	$	1,742	$	66	$	25	$	51
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,349)		-		960		421
Regulatory Liabilities (a)			(950)		(2,347)		(1,264)		18		130
Total Gain (Loss) on Risk Management
	Contracts	$	(204)	$	(1,954)	$	(1,198)	$	1,003	$	602

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	378	$	3,814	$	87	$	71	$	174
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(138)		(1,213)		3,000		598		115
Regulatory Liabilities (a)			(1,672)		(5,267)		(6,788)		2		11
Total Gain (Loss) on Risk Management
	Contracts	$	(1,432)	$	(2,666)	$	(3,701)	$	671	$	300

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	1,619	$	9,586	$	3,599	$	241	$	381
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,648)		(5,158)		3,162		427
Regulatory Liabilities (a)			(1,160)		(9,209)		1,557		18		157
Total Gain (Loss) on Risk Management
	Contracts	$	459	$	(1,271)	$	(2)	$	3,421	$	965

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(548)	$	9,206	$	11,118	$	231	$	426
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(6,133)		(7,228)		(9,026)		(5,360)		(6,977)
Regulatory Liabilities (a)			8,166		1,851		390		3		6
Total Gain (Loss) on Risk Management
	Contracts	$	1,485	$	3,829	$	2,482	$	(5,126)	$	(6,545)

(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
September 30, 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	$	307	$	-	$	430	$	-	$	(34)	$	2,836
I&M		199		-		278		-		(19)		(16,386)
OPCo		418		-		585		-		(47)		7,076
PSO		10		-		16		-		(3)		5,891
SWEPCo		12		-		19		-		(3)		(13,871)

	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	$	(172)	$	(930)		15
I&M		(113)		(1,640)		15
OPCo		(236)		1,359		15
PSO		1		759		15
SWEPCo		1		(2,267)		15

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

	September 30, 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	$	850	$	6,183	$	5,812
I&M		560		4,069		3,824
OPCo		1,167		8,484		7,975
PSO		-		255		200
SWEPCo		-		315		247

	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

	September 30, 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	$	27,044	$	-	$	22,162
I&M		17,796		-		14,583
OPCo		37,110		-		30,410
PSO		5		-		5
SWEPCo		6		-		6

	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
September 30, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		75,861		49,918		104,093		8		10
	Coal		Tons		282		3,980		813		2,075		1,229
	Natural Gas		MMBtus		4,121		2,711		5,654		-		-
	Heating Oil and
		Gasoline	Gallons		981		484		1,155		491		603
	Interest Rate		USD	$	16,501	$	10,858	$	22,642	$	-	$	-

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	$	-	$	-	$	-

	September 30, 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	$	116	$	5,608	$	1,262	$	11,029
I&M		76		3,688		867		7,576
OPCo		159		7,693		1,774		15,500
PSO		-		7		-		-
SWEPCo		-		8		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

I&M
Fair Value of Derivative Instruments
September 30, 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		$	44,988	$	149	$	-	$	45,137	$	(28,987)	$	16,150
Long-term Risk Management Assets			21,432		149		-		21,581		(7,848)		13,733
Total Assets			66,420		298		-		66,718		(36,835)		29,883

Current Risk Management Liabilities			40,809		370		-		41,179		(31,911)		9,268
Long-term Risk Management Liabilities			16,836		7		-		16,843		(8,536)		8,307
Total Liabilities			57,645		377		-		58,022		(40,447)		17,575

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	8,775	$	(79)	$	-	$	8,696	$	3,612	$	12,308

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 September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	746	$	1,742	$	66	$	25	$	51
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,349)		-		960		421
Regulatory Liabilities (a)			(950)		(2,347)		(1,264)		18		130
Total Gain (Loss) on Risk Management
	Contracts	$	(204)	$	(1,954)	$	(1,198)	$	1,003	$	602

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	378	$	3,814	$	87	$	71	$	174
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(138)		(1,213)		3,000		598		115
Regulatory Liabilities (a)			(1,672)		(5,267)		(6,788)		2		11
Total Gain (Loss) on Risk Management
	Contracts	$	(1,432)	$	(2,666)	$	(3,701)	$	671	$	300

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	1,619	$	9,586	$	3,599	$	241	$	381
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,648)		(5,158)		3,162		427
Regulatory Liabilities (a)			(1,160)		(9,209)		1,557		18		157
Total Gain (Loss) on Risk Management
	Contracts	$	459	$	(1,271)	$	(2)	$	3,421	$	965

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(548)	$	9,206	$	11,118	$	231	$	426
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(6,133)		(7,228)		(9,026)		(5,360)		(6,977)
Regulatory Liabilities (a)			8,166		1,851		390		3		6
Total Gain (Loss) on Risk Management
	Contracts	$	1,485	$	3,829	$	2,482	$	(5,126)	$	(6,545)

(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
September 30, 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	$	307	$	-	$	430	$	-	$	(34)	$	2,836
I&M		199		-		278		-		(19)		(16,386)
OPCo		418		-		585		-		(47)		7,076
PSO		10		-		16		-		(3)		5,891
SWEPCo		12		-		19		-		(3)		(13,871)

	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	$	(172)	$	(930)		15
I&M		(113)		(1,640)		15
OPCo		(236)		1,359		15
PSO		1		759		15
SWEPCo		1		(2,267)		15

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

	September 30, 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	$	850	$	6,183	$	5,812
I&M		560		4,069		3,824
OPCo		1,167		8,484		7,975
PSO		-		255		200
SWEPCo		-		315		247

	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

	September 30, 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	$	27,044	$	-	$	22,162
I&M		17,796		-		14,583
OPCo		37,110		-		30,410
PSO		5		-		5
SWEPCo		6		-		6

	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
September 30, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		75,861		49,918		104,093		8		10
	Coal		Tons		282		3,980		813		2,075		1,229
	Natural Gas		MMBtus		4,121		2,711		5,654		-		-
	Heating Oil and
		Gasoline	Gallons		981		484		1,155		491		603
	Interest Rate		USD	$	16,501	$	10,858	$	22,642	$	-	$	-

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	$	-	$	-	$	-

	September 30, 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	$	116	$	5,608	$	1,262	$	11,029
I&M		76		3,688		867		7,576
OPCo		159		7,693		1,774		15,500
PSO		-		7		-		-
SWEPCo		-		8		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

OPCo
Fair Value of Derivative Instruments
September 30, 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		$	96,628	$	315	$	-	$	96,943	$	(62,765)	$	34,178
Long-term Risk Management Assets			44,597		310		-		44,907		(16,313)		28,594
Total Assets			141,225		625		-		141,850		(79,078)		62,772

Current Risk Management Liabilities			84,519		774		-		85,293		(68,862)		16,431
Long-term Risk Management Liabilities			34,309		18		-		34,327		(17,750)		16,577
Total Liabilities			118,828		792		-		119,620		(86,612)		33,008

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	22,397	$	(167)	$	-	$	22,230	$	7,534	$	29,764

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 September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	746	$	1,742	$	66	$	25	$	51
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,349)		-		960		421
Regulatory Liabilities (a)			(950)		(2,347)		(1,264)		18		130
Total Gain (Loss) on Risk Management
	Contracts	$	(204)	$	(1,954)	$	(1,198)	$	1,003	$	602

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	378	$	3,814	$	87	$	71	$	174
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(138)		(1,213)		3,000		598		115
Regulatory Liabilities (a)			(1,672)		(5,267)		(6,788)		2		11
Total Gain (Loss) on Risk Management
	Contracts	$	(1,432)	$	(2,666)	$	(3,701)	$	671	$	300

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	1,619	$	9,586	$	3,599	$	241	$	381
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,648)		(5,158)		3,162		427
Regulatory Liabilities (a)			(1,160)		(9,209)		1,557		18		157
Total Gain (Loss) on Risk Management
	Contracts	$	459	$	(1,271)	$	(2)	$	3,421	$	965

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(548)	$	9,206	$	11,118	$	231	$	426
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(6,133)		(7,228)		(9,026)		(5,360)		(6,977)
Regulatory Liabilities (a)			8,166		1,851		390		3		6
Total Gain (Loss) on Risk Management
	Contracts	$	1,485	$	3,829	$	2,482	$	(5,126)	$	(6,545)

(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
September 30, 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	$	307	$	-	$	430	$	-	$	(34)	$	2,836
I&M		199		-		278		-		(19)		(16,386)
OPCo		418		-		585		-		(47)		7,076
PSO		10		-		16		-		(3)		5,891
SWEPCo		12		-		19		-		(3)		(13,871)

	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	$	(172)	$	(930)		15
I&M		(113)		(1,640)		15
OPCo		(236)		1,359		15
PSO		1		759		15
SWEPCo		1		(2,267)		15

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

	September 30, 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	$	850	$	6,183	$	5,812
I&M		560		4,069		3,824
OPCo		1,167		8,484		7,975
PSO		-		255		200
SWEPCo		-		315		247

	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

	September 30, 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	$	27,044	$	-	$	22,162
I&M		17,796		-		14,583
OPCo		37,110		-		30,410
PSO		5		-		5
SWEPCo		6		-		6

	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
September 30, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		75,861		49,918		104,093		8		10
	Coal		Tons		282		3,980		813		2,075		1,229
	Natural Gas		MMBtus		4,121		2,711		5,654		-		-
	Heating Oil and
		Gasoline	Gallons		981		484		1,155		491		603
	Interest Rate		USD	$	16,501	$	10,858	$	22,642	$	-	$	-

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	$	-	$	-	$	-

	September 30, 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	$	116	$	5,608	$	1,262	$	11,029
I&M		76		3,688		867		7,576
OPCo		159		7,693		1,774		15,500
PSO		-		7		-		-
SWEPCo		-		8		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

PSO
Fair Value of Derivative Instruments
September 30, 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		$	1,394	$	13	$	-	$	1,407	$	(555)	$	852
Long-term Risk Management Assets			149		-		-		149		-		149
Total Assets			1,543		13		-		1,556		(555)		1,001

Current Risk Management Liabilities			1,931		12		-		1,943		(555)		1,388
Long-term Risk Management Liabilities			-		7		-		7		(7)		-
Total Liabilities			1,931		19		-		1,950		(562)		1,388

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	(388)	$	(6)	$	-	$	(394)	$	7	$	(387)

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 September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	746	$	1,742	$	66	$	25	$	51
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,349)		-		960		421
Regulatory Liabilities (a)			(950)		(2,347)		(1,264)		18		130
Total Gain (Loss) on Risk Management
	Contracts	$	(204)	$	(1,954)	$	(1,198)	$	1,003	$	602

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	378	$	3,814	$	87	$	71	$	174
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(138)		(1,213)		3,000		598		115
Regulatory Liabilities (a)			(1,672)		(5,267)		(6,788)		2		11
Total Gain (Loss) on Risk Management
	Contracts	$	(1,432)	$	(2,666)	$	(3,701)	$	671	$	300

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	1,619	$	9,586	$	3,599	$	241	$	381
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,648)		(5,158)		3,162		427
Regulatory Liabilities (a)			(1,160)		(9,209)		1,557		18		157
Total Gain (Loss) on Risk Management
	Contracts	$	459	$	(1,271)	$	(2)	$	3,421	$	965

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(548)	$	9,206	$	11,118	$	231	$	426
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(6,133)		(7,228)		(9,026)		(5,360)		(6,977)
Regulatory Liabilities (a)			8,166		1,851		390		3		6
Total Gain (Loss) on Risk Management
	Contracts	$	1,485	$	3,829	$	2,482	$	(5,126)	$	(6,545)

(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
September 30, 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	$	307	$	-	$	430	$	-	$	(34)	$	2,836
I&M		199		-		278		-		(19)		(16,386)
OPCo		418		-		585		-		(47)		7,076
PSO		10		-		16		-		(3)		5,891
SWEPCo		12		-		19		-		(3)		(13,871)

	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	$	(172)	$	(930)		15
I&M		(113)		(1,640)		15
OPCo		(236)		1,359		15
PSO		1		759		15
SWEPCo		1		(2,267)		15

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

	September 30, 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	$	850	$	6,183	$	5,812
I&M		560		4,069		3,824
OPCo		1,167		8,484		7,975
PSO		-		255		200
SWEPCo		-		315		247

	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

	September 30, 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	$	27,044	$	-	$	22,162
I&M		17,796		-		14,583
OPCo		37,110		-		30,410
PSO		5		-		5
SWEPCo		6		-		6

	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
September 30, 2013

Primary Risk			Unit of
Exposure			Measure	APCo		I&M		OPCo		PSO		SWEPCo
				(in thousands)
Commodity:
	Power		MWhs		75,861		49,918		104,093		8		10
	Coal		Tons		282		3,980		813		2,075		1,229
	Natural Gas		MMBtus		4,121		2,711		5,654		-		-
	Heating Oil and
		Gasoline	Gallons		981		484		1,155		491		603
	Interest Rate		USD	$	16,501	$	10,858	$	22,642	$	-	$	-

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	$	-	$	-	$	-

	September 30, 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	$	116	$	5,608	$	1,262	$	11,029
I&M		76		3,688		867		7,576
OPCo		159		7,693		1,774		15,500
PSO		-		7		-		-
SWEPCo		-		8		-		-

Amount of Gain Loss Recognized on Risk Management Contracts

SWEPCo
Fair Value of Derivative Instruments
September 30, 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		$	1,444	$	15	$	-	$	1,459	$	(1,057)	$	402
Long-term Risk Management Assets			21		-		-		21		-		21
Total Assets			1,465		15		-		1,480		(1,057)		423

Current Risk Management Liabilities			1,339		14		-		1,353		(1,057)		296
Long-term Risk Management Liabilities			-		8		-		8		(8)		-
Total Liabilities			1,339		22		-		1,361		(1,065)		296

Total MTM Derivative Contract Net
	Assets (Liabilities)	$	126	$	(7)	$	-	$	119	$	8	$	127

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 September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	746	$	1,742	$	66	$	25	$	51
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,349)		-		960		421
Regulatory Liabilities (a)			(950)		(2,347)		(1,264)		18		130
Total Gain (Loss) on Risk Management
	Contracts	$	(204)	$	(1,954)	$	(1,198)	$	1,003	$	602

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Three Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	378	$	3,814	$	87	$	71	$	174
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(138)		(1,213)		3,000		598		115
Regulatory Liabilities (a)			(1,672)		(5,267)		(6,788)		2		11
Total Gain (Loss) on Risk Management
	Contracts	$	(1,432)	$	(2,666)	$	(3,701)	$	671	$	300

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2013

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	1,619	$	9,586	$	3,599	$	241	$	381
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			-		(1,648)		(5,158)		3,162		427
Regulatory Liabilities (a)			(1,160)		(9,209)		1,557		18		157
Total Gain (Loss) on Risk Management
	Contracts	$	459	$	(1,271)	$	(2)	$	3,421	$	965

Amount of Gain (Loss) Recognized on
Risk Management Contracts
For the Nine Months Ended September 30, 2012

Location of Gain (Loss)		APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Electric Generation, Transmission and
	Distribution Revenues	$	(548)	$	9,206	$	11,118	$	231	$	426
Sales to AEP Affiliates			-		-		-		-		-
Fuel and Other Consumables Used for
	Electric Generation		-		-		-		-		-
Regulatory Assets (a)			(6,133)		(7,228)		(9,026)		(5,360)		(6,977)
Regulatory Liabilities (a)			8,166		1,851		390		3		6
Total Gain (Loss) on Risk Management
	Contracts	$	1,485	$	3,829	$	2,482	$	(5,126)	$	(6,545)

(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
September 30, 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	$	307	$	-	$	430	$	-	$	(34)	$	2,836
I&M		199		-		278		-		(19)		(16,386)
OPCo		418		-		585		-		(47)		7,076
PSO		10		-		16		-		(3)		5,891
SWEPCo		12		-		19		-		(3)		(13,871)

	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	$	(172)	$	(930)		15
I&M		(113)		(1,640)		15
OPCo		(236)		1,359		15
PSO		1		759		15
SWEPCo		1		(2,267)		15

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

	September 30, 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	$	850	$	6,183	$	5,812
I&M		560		4,069		3,824
OPCo		1,167		8,484		7,975
PSO		-		255		200
SWEPCo		-		315		247

	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