Benefit Plans

12 Months Ended

Dec. 31, 2014

Benefit Plans

BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Investments Held in Trust for Future Liabilities” and “Fair Value Measurements of Assets and Liabilities” sections of Note 1.

We sponsor a qualified pension plan and two unfunded nonqualified pension plans.  Substantially all of our employees are covered by the qualified plan or both the qualified and a nonqualified pension plan.  We sponsor OPEB plans to provide health and life insurance benefits for retired employees.

We recognize the funded status associated with our defined benefit pension and OPEB plans in the balance sheets. Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance.  We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of other comprehensive income, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost.  We record a regulatory asset instead of other comprehensive income for qualifying benefit costs of our regulated operations that for ratemaking purposes are deferred for future recovery.  The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in an AOCI equity reduction or regulatory asset and deferred gains result in an AOCI equity addition or regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions as of December 31 of each year used in the measurement of our benefit obligations are shown in the following table:

	Pension Plans						Other Postretirement Benefit Plans
Assumptions	2014			2013			2014		2013
Discount Rate	4.00	%		4.70	%		4.00	%	4.70	%
Rate of Compensation Increase	4.80	%	(a)	4.85	%	(a)	NA		NA

(a) Rates are for base pay only.  In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

NA Not applicable.

We use a duration-based method to determine the discount rate for our plans.  A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability.  The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.

For 2014, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with an average increase of 4.8%.

We updated our mortality assumption for the December 31, 2014 benefit obligation measurements based on mortality tables issued by the Society of Actuaries in October 2014. These updates increased our benefit obligations by approximately $128 million for the pension plans and $8 million for the OPEB plans.

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions as of January 1 of each year used in the measurement of our benefit costs are shown in the following table:

	Pension Plans						Other Postretirement Benefit Plans
	2014		2013		2012		2014		2013		2012
Discount Rate	4.70	%	3.95	%	4.55	%	4.70	%	3.95	%	4.75	%
Expected Return on Plan Assets	6.00	%	6.50	%	7.25	%	6.75	%	7.00	%	7.25	%
Rate of Compensation Increase	4.85	%	4.95	%	4.85	%	NA		NA		NA

NA Not applicable.

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation and current prospects for economic growth.

The health care trend rate assumptions as of January 1 of each year used for OPEB plans measurement purposes are shown below:

Health Care Trend Rates	2014		2013
Initial	6.50	%	6.75	%
Ultimate	5.00	%	5.00	%
Year Ultimate Reached	2020		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the OPEB health care plans.  A 1% change in assumed health care cost trend rates would have the following effects:

	1% Increase		1% Decrease
	(in millions)
Effect on Total Service and Interest Cost Components of Net Periodic Postretirement Health Care Benefit Cost	$	4	$	(3	)
Effect on the Health Care Component of the Accumulated Postretirement Benefit Obligation	77		(60		)

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets.  The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits.  The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment.  We monitor the plans to control security diversification and ensure compliance with our investment policy.  As of December 31, 2014, the assets were invested in compliance with all investment limits.  See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status as of December 31, 2014 and 2013

The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status as of December 31.  The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

	Pension Plans						Other Postretirement  Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in millions)
Benefit Obligation as of January 1,	$	4,841		$	5,205		$	1,456		$	1,849
Service Cost	72			69			14			23
Interest Cost	221			203			67			71
Actuarial (Gain) Loss	387			(305		)	(14		)	(395		)
Benefit Payments	(296		)	(331		)	(134		)	(140		)
Participant Contributions	—			—			42			39
Medicare Subsidy	—			—			8			9
Benefit Obligation as of December 31,	$	5,225		$	4,841		$	1,439		$	1,456
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	4,711		$	4,696		$	1,699		$	1,568
Actual Gain on Plan Assets	474			340			83			208
Company Contributions	79			6			4			24
Participant Contributions	—			—			42			39
Benefit Payments	(296		)	(331		)	(134		)	(140		)
Fair Value of Plan Assets as of December 31,	$	4,968		$	4,711		$	1,694		$	1,699
Funded (Underfunded) Status as of December 31,	$	(257	)	$	(130	)	$	255		$	243

Amounts Recognized on the Balance Sheets as of December 31, 2014 and 2013

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
	2014			2013			2014			2013
	(in millions)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	337		$	264
Other Current Liabilities – Accrued Short-term Benefit Liability	(6		)	(7		)	(4		)	(4		)
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(251		)	(123		)	(78		)	(17		)
Funded (Underfunded) Status	$	(257	)	$	(130	)	$	255		$	243

Amounts Included in AOCI and Regulatory Assets as of December 31, 2014 and 2013

	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in millions)
Net Actuarial Loss	$	1,612	$	1,561	$	420		$	428
Prior Service Cost (Credit)	5		8		(624		)	(693		)
Recorded as
Regulatory Assets	$	1,418	$	1,343	$	(149	)	$	(191	)
Deferred Income Taxes	70		79		(19		)	(26		)
Net of Tax AOCI	129		147		(36		)	(48		)

Components of the change in amounts included in AOCI and Regulatory Assets during the years ended December 31, 2014 and 2013 are as follows:

	Pension Plans						Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2014			2013
Components	(in millions)
Actuarial (Gain) Loss During the Year	$	175		$	(367	)	$	14		$	(496	)
Amortization of Actuarial Loss	(124		)	(183		)	(22		)	(65		)
Amortization of Prior Service Credit (Cost)	(3		)	(3		)	69			69
Change for the Year	$	48		$	(553	)	$	61		$	(492	)

Pension and Other Postretirement Benefits Plans’ Assets

The following table presents the classification of pension plan assets within the fair value hierarchy as of December 31, 2014:

Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in millions)
Equities:
Domestic	$	589	$	—	$	—	$	—		$	589		11.9	%
International	502		—		—		—			502			10.1	%
Options	—		14		—		—			14			0.3	%
Real Estate Investment Trusts	54		—		—		—			54			1.1	%
Common Collective Trust – Global	—		377		—		—			377			7.6	%
Common Collective Trust – International	—		19		—		—			19			0.4	%
Subtotal – Equities	1,145		410		—		—			1,555			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		30		—		—			30			0.6	%
United States Government and Agency Securities	—		450		—		—			450			9.0	%
Corporate Debt	—		1,799		—		—			1,799			36.2	%
Foreign Debt	—		401		—		—			401			8.1	%
State and Local Government	—		15		—		—			15			0.3	%
Other – Asset Backed	—		29		—		—			29			0.6	%
Subtotal – Fixed Income	—		2,724		—		—			2,724			54.8	%
Infrastructure	—		—		13		—			13			0.3	%
Real Estate	—		—		236		—			236			4.7	%
Alternative Investments	—		—		379		—			379			7.6	%
Securities Lending	—		220		—		—			220			4.4	%
Securities Lending Collateral (a)	—		—		—		(222		)	(222		)	(4.5	)%
Cash and Cash Equivalents	—		53		—		—			53			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		10			10			0.2	%
Total	$	1,145	$	3,407	$	628	$	(212	)	$	4,968		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following table sets forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for the pension assets:

	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in millions)
Balance as of January 1, 2014	$	—	$	238		$	330	$	568
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		6			32		38
Relating to Assets Sold During the Period	—		19			16		35
Purchases and Sales	13		(27		)	1		(13		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	13	$	236		$	379	$	628

The following table presents the classification of OPEB plan assets within the fair value hierarchy as of December 31, 2014:

Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in millions)
Equities:
Domestic	$	466	$	—	$	—	$	—	$	466	27.5	%
International	567		—		—		—		567		33.5	%
Options	—		16		—		—		16		1.0	%
Common Collective Trust – Global	—		30		—		—		30		1.8	%
Subtotal – Equities	1,033		46		—		—		1,079		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		104		—		—		104		6.1	%
United States Government and Agency Securities	—		71		—		—		71		4.2	%
Corporate Debt	—		125		—		—		125		7.4	%
Foreign Debt	—		21		—		—		21		1.3	%
State and Local Government	—		6		—		—		6		0.3	%
Other – Asset Backed	—		5		—		—		5		0.3	%
Subtotal – Fixed Income	—		332		—		—		332		19.6	%
Trust Owned Life Insurance:
International Equities	—		10		—		—		10		0.6	%
United States Bonds	—		212		—		—		212		12.5	%
Subtotal – Trust Owned Life Insurance	—		222		—		—		222		13.1	%
Cash and Cash Equivalents	47		10		—		—		57		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		4		4		0.2	%
Total	$	1,080	$	610	$	—	$	4	$	1,694	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following table presents the classification of pension plan assets within the fair value hierarchy as of December 31, 2013:

Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in millions)
Equities:
Domestic	$	1,092	$	—	$	—	$	—		$	1,092		23.2	%
International	514		—		—		—			514			10.9	%
Real Estate Investment Trusts	58		—		—		—			58			1.2	%
Common Collective Trust – International	—		10		—		—			10			0.2	%
Subtotal – Equities	1,664		10		—		—			1,674			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		26		—		—			26			0.5	%
United States Government and Agency Securities	—		387		—		—			387			8.2	%
Corporate Debt	—		1,600		—		—			1,600			34.0	%
Foreign Debt	—		344		—		—			344			7.3	%
State and Local Government	—		28		—		—			28			0.6	%
Other – Asset Backed	—		33		—		—			33			0.7	%
Subtotal – Fixed Income	—		2,418		—		—			2,418			51.3	%
Real Estate	—		—		238		—			238			5.0	%
Alternative Investments	—		—		330		—			330			7.0	%
Securities Lending	—		35		—		—			35			0.8	%
Securities Lending Collateral (a)	—		—		—		(45		)	(45		)	(0.9	)%
Cash and Cash Equivalents	—		48		—		—			48			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		13			13			0.3	%
Total	$	1,664	$	2,511	$	568	$	(32	)	$	4,711		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following table sets forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for the pension assets:

	Real Estate			Alternative Investments		Total Level 3
	(in millions)
Balance as of January 1, 2013	$	220		$	195	$	415
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	26			15		41
Relating to Assets Sold During the Period	—			15		15
Purchases and Sales	(8		)	105		97
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	238		$	330	$	568

The following table presents the classification of OPEB plan assets within the fair value hierarchy as of December 31, 2013:

Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in millions)
Equities:
Domestic	$	473	$	—	$	—	$	—	$	473	27.9	%
International	616		—		—		—		616		36.2	%
Common Collective Trust – Global	—		15		—		—		15		0.9	%
Subtotal – Equities	1,089		15		—		—		1,104		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		88		—		—		88		5.2	%
United States Government and Agency Securities	—		56		—		—		56		3.3	%
Corporate Debt	—		110		—		—		110		6.5	%
Foreign Debt	—		22		—		—		22		1.2	%
State and Local Government	—		5		—		—		5		0.3	%
Other – Asset Backed	—		8		—		—		8		0.5	%
Subtotal – Fixed Income	—		289		—		—		289		17.0	%
Trust Owned Life Insurance:
International Equities	—		13		—		—		13		0.8	%
United States Bonds	—		211		—		—		211		12.4	%
Subtotal – Trust Owned Life Insurance	—		224		—		—		224		13.2	%
Cash and Cash Equivalents	68		9		—		—		77		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		5		5		0.3	%
Total	$	1,157	$	537	$	—	$	5	$	1,699	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Determination of Pension Expense

We base our determination of pension expense or income on a market-related valuation of assets which reduces year-to-year volatility.  This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur.  Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

The accumulated benefit obligation for the pension plans is as follows:

	December 31,
Accumulated Benefit Obligation	2014		2013
	(in millions)
Qualified Pension Plan	$	4,982	$	4,638
Nonqualified Pension Plans	76		77
Total	$	5,058	$	4,715

For our underfunded pension plans that had an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of these plans as of December 31, 2014 and 2013 were as follows:

	Underfunded Pension Plans
	December 31,
	2014			2013
	(in millions)
Projected Benefit Obligation	$	5,225		$	4,841
Accumulated Benefit Obligation	$	5,058		$	4,715
Fair Value of Plan Assets	4,968			4,711
Underfunded Accumulated Benefit Obligation	$	(90	)	$	(4	)

Estimated Future Benefit Payments and Contributions

We expect contributions and payments for the pension plans of $93 million and the OPEB plans of $6 million during 2015.  For the pension plans, this amount includes the payment of unfunded nonqualified benefits plus contributions to the qualified trust fund of at least the minimum amount required by the Employee Retirement Income Security Act.  For the qualified pension plan, we may also make additional discretionary contributions to maintain the funded status of the plan.  For the OPEB plans, expected payments include the payment of unfunded benefits.

The table below reflects the total benefits expected to be paid from the plan or from our assets.  The payments include the participants’ contributions to the plan for their share of the cost.  Effective for employees hired after December 2013, we will not provide retiree medical coverage.  Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results.  The estimated payments for pension benefits and OPEB are as follows:

	Pension Plans		Other Postretirement Benefit Plans
	Pension Payments		Benefit Payments		Medicare Subsidy Receipts
	(in millions)
2015	$	315	$	129	$	—
2016	323		129		—
2017	334		130		—
2018	341		132		—
2019	350		132		—
Years 2020 to 2024, in Total	1,822		688		2

Components of Net Periodic Benefit Cost

The following table provides the components of our net periodic benefit cost (credit) for the plans for the years ended December 31, 2014, 2013 and 2012:

	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in millions)
Service Cost	$	72		$	69		$	76		$	14		$	23		$	47
Interest Cost	221			203			223			67			71			103
Expected Return on Plan Assets	(262		)	(278		)	(319		)	(111		)	(107		)	(101		)
Amortization of Transition Obligation	—			—			—			—			—			1
Amortization of Prior Service Cost (Credit)	3			3			(1		)	(69		)	(69		)	(18		)
Amortization of Net Actuarial Loss	124			183			155			22			65			57
Net Periodic Benefit Cost (Credit)	158			180			134			(77		)	(17		)	89
Capitalized Portion	(52		)	(56		)	(42		)	25			5			(28		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	106		$	124		$	92		$	(52	)	$	(12	)	$	61

Estimated amounts expected to be amortized to net periodic benefit costs (credits) and the impact on the balance sheet during 2015 are shown in the following table:

	Pension Plans		Other Postretirement Benefit Plans
Components	(in millions)
Net Actuarial Loss	$	108	$	17
Prior Service Cost (Credit)	2		(69		)
Total Estimated 2015 Amortization	$	110	$	(52	)
Expected to be Recorded as
Regulatory Asset	$	94	$	(38	)
Deferred Income Taxes	6		(5		)
Net of Tax AOCI	10		(9		)
Total	$	110	$	(52	)

American Electric Power System Retirement Savings Plan

We sponsor the American Electric Power System Retirement Savings Plan, a defined contribution retirement savings plan for substantially all employees who are not covered by a retirement savings plan of the United Mine Workers of America (UMWA).  It is a qualified plan offering participants an opportunity to contribute a portion of their pay with features under Section 401(k) of the Internal Revenue Code.  The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions.  The cost for matching contributions totaled $70 million in 2014, $67 million in 2013 and $66 million in 2012.

UMWA Benefits

We provide UMWA pension, health and welfare benefits for certain unionized employees, retirees and their survivors who meet eligibility requirements.  UMWA trustees make final interpretive determinations with regard to all benefits.  The pension benefits are administered by UMWA trustees and contributions are made to their trust funds.  The health and welfare benefits are administered by us and benefits are paid from our general assets.

The UMWA pension benefits are administered through a multiemployer plan that is different from single-employer plans as an employer’s contributions may be used to provide benefits to employees of other participating employers.  Required contributions not made by any employer may result in other employers bearing the unfunded plan obligations, while a withdrawing employer may be subject to a withdrawal liability.  UMWA pension benefits are provided through the United Mine Workers of America 1974 Pension Plan (Employer Identification Number: 52-1050282, Plan Number 2), which under the Pension Protection Act of 2006 (PPA) was in Critical Status for the plan year ending June 30, 2014 and in Seriously Endangered Status for the plan year ending June 30, 2013, without utilization of extended amortization provisions.  The Plan adopted a funding improvement plan in May 2012, as required under the PPA.

Contributions to the UMWA pension plan in 2014, 2013 and 2012 were made under a collective bargaining agreement that is scheduled to expire December 31, 2017.  We contributed immaterial amounts in 2014, 2013 and 2012 that represent less than 5% of the total contributions in the plan’s latest annual report for the years ended June 30, 2014, 2013 and 2012.  The contributions we made included a surcharge of 5% beginning December 2014 and are scheduled to include a surcharge of 10% beginning July 2015.  There are no minimum contributions for future years.

Based upon the plan to retrofit the Rockport Plant with dry sorbent injection technology to meet environmental emission control requirements and the timing of the closure of Cook Coal Terminal expected to be in or after 2025, we recorded a UWMA withdrawal liability in 2013.  The withdrawal liability regulatory asset recorded on the balance sheet should be recovered in future billings for transloading services before the planned closure. As of December 31, 2014 and 2013, the regulatory asset balance was $25 million and $27 million, respectively.

Appalachian Power Co [Member]

Benefit Plans

BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Investments Held in Trust for Future Liabilities” and “Fair Value Measurements of Assets and Liabilities” sections of Note 1.

The Registrant Subsidiaries participate in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans.  Substantially all employees are covered by the qualified plan or both the qualified and a nonqualified pension plan.  The Registrant Subsidiaries also participate in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

Due to the Registrant Subsidiaries’ participation in AEP’s benefits plans, the assumptions used by the actuary and the accounting for the plans by each subsidiary are the same.  This section details the assumptions that apply to all Registrant Subsidiaries and the rate of compensation increase for each subsidiary.

The Registrant Subsidiaries recognize the funded status associated with defined benefit pension and OPEB plans in their balance sheets.  Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance.  The Registrant Subsidiaries recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of other comprehensive income, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost.  The Registrant Subsidiaries record a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that for ratemaking purposes are deferred for future recovery.  The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in an AOCI equity reduction or regulatory asset and deferred gains result in an AOCI equity addition or regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions as of December 31 of each year used in the measurement of the Registrant Subsidiaries’ benefit obligations are shown in the following tables:

	Pension Plans				Other Postretirement Benefit Plans
Assumption	2014		2013		2014		2013
Discount Rate	4.00	%	4.70	%	4.00	%	4.70	%

	Pension Plans
Assumption – Rate of Compensation Increase (a)	2014		2013
APCo	4.45	%	4.60	%
I&M	4.80	%	4.90	%
OPCo	4.80	%	5.00	%
PSO	4.80	%	4.90	%
SWEPCo	4.80	%	4.85	%

(a) Rates are for base pay only.  In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

A duration-based method is used to determine the discount rate for the plans.  A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability.  The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.  The discount rate is the same for each Registrant Subsidiary.

For 2014, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with the average increase shown in the table above.  The compensation increase rates reflect variations in each Registrant Subsidiaries' population participating in the pension plan.

Updated mortality assumptions based on mortality tables issued by the Society of Actuaries in October 2014 were used for the December 31, 2014 benefit obligation measurements. These updates resulted in approximate benefit obligation increases by Registrant Subsidiary as shown in the following table:

	Pension Plans		Other Postretirement Benefit Plans
Increase in Benefit Obligation	(in thousands)
APCo	$	17,946	$	2,271
I&M	15,117		1,644
OPCo	14,525		310
PSO	6,811		555
SWEPCo	6,445		775

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions as of January 1 of each year used in the measurement of each Registrant Subsidiaries’ benefit costs are shown in the following tables:

	Pension Plans						Other Postretirement Benefit Plans
Assumptions	2014		2013		2012		2014		2013		2012
Discount Rate	4.70	%	3.95	%	4.55	%	4.70	%	3.95	%	4.75	%
Expected Return on Plan Assets	6.00	%	6.50	%	7.25	%	6.75	%	7.00	%	7.25	%

	Pension Plans
Assumption – Rate of Compensation Increase	2014		2013		2012
APCo	4.60	%	4.70	%	4.70	%
I&M	4.90	%	5.00	%	5.00	%
OPCo	5.00	%	5.00	%	5.00	%
PSO	4.90	%	4.90	%	4.90	%
SWEPCo	4.85	%	4.75	%	4.75	%

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation and current prospects for economic growth.  The expected return on plan assets is the same for each Registrant Subsidiary.

The health care trend rate assumptions as of January 1 of each year used for OPEB plans measurement purposes are shown below:

Health Care Trend Rates	2014		2013
Initial	6.50	%	6.75	%
Ultimate	5.00	%	5.00	%
Year Ultimate Reached	2020		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the OPEB health care plans.  A 1% change in assumed health care cost trend rates would have the following effects:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Effect on Total Service and Interest Cost Components of Net Periodic Postretirement Health Care Benefit Cost:
1% Increase	$	902		$	343		$	308		$	158		$	179
1% Decrease	(691		)	(264		)	(237		)	(121		)	(138		)
Effect on the Health Care Component of the Accumulated Postretirement Benefit Obligation:
1% Increase	$	17,260		$	7,117		$	7,251		$	3,377		$	3,742
1% Decrease	(13,614		)	(5,630		)	(5,736		)	(2,671		)	(2,960		)

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets.  The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits.  The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment.  Management monitors the plans to control security diversification and ensure compliance with the investment policy.  As of December 31, 2014, the assets were invested in compliance with all investment limits.  See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status as of December 31, 2014 and 2013

The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status as of December 31.  The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

APCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	663,231		$	718,460		$	279,884		$	348,990
Service Cost	7,036			6,171			1,448			2,566
Interest Cost	29,624			27,662			12,788			13,454
Actuarial (Gain) Loss	41,671			(45,619		)	(8,975		)	(66,056		)
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Participant Contributions	—			—			7,196			6,600
Medicare Subsidy	—			—			1,391			1,550
Benefit Obligation as of December 31,	$	702,805		$	663,231		$	267,148		$	279,884
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	627,995		$	621,570		$	284,840		$	267,758
Actual Gain on Plan Assets	44,052			49,832			11,836			34,289
Company Contributions	8,999			36			3,345			3,413
Participant Contributions	—			—			7,196			6,600
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Fair Value of Plan Assets as of December 31,	$	642,289		$	627,995		$	280,633		$	284,840
Funded (Underfunded) Status as of December 31,	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

I&M	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	574,699		$	618,973		$	166,497		$	218,553
Service Cost	10,068			8,736			1,947			3,219
Interest Cost	26,293			24,100			7,638			8,221
Actuarial (Gain) Loss	38,466			(41,631		)	(4,925		)	(52,800		)
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Participant Contributions	—			—			5,168			4,745
Medicare Subsidy	—			—			1,064			1,172
Benefit Obligation as of December 31,	$	617,948		$	574,699		$	161,659		$	166,497
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	559,143		$	552,026		$	206,214		$	194,128
Actual Gain on Plan Assets	55,295			42,584			6,664			23,844
Company Contributions	8,877			12			92			110
Participant Contributions	—			—			5,168			4,745
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Fair Value of Plan Assets as of December 31,	$	591,737		$	559,143		$	202,408		$	206,214
Funded (Underfunded) Status as of December 31,	$	(26,211	)	$	(15,556	)	$	40,749		$	39,717

OPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	523,643		$	1,068,186		$	171,164		$	466,290
Transfer of OPCo Generation Benefit Obligation	—			(499,725		)	—			(250,843		)
Service Cost	5,140			5,285			1,026			2,882
Interest Cost	22,105			21,939			7,601			9,494
Actuarial (Gain) Loss	6,761			(34,373		)	(4,286		)	(44,149		)
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Participant Contributions	—			—			5,564			5,199
Medicare Subsidy	—			—			981			1,135
Benefit Obligation as of December 31,	$	526,250		$	523,643		$	164,697		$	171,164
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	501,634		$	1,015,115		$	211,994		$	366,301
Transfer of OPCo Generation Plan Assets	—			(506,076		)	—			(170,650		)
Actual Gain on Plan Assets	21,679			30,264			6,007			29,576
Company Contributions	6,547			—			—			412
Participant Contributions	—			—			5,564			5,199
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Fair Value of Plan Assets as of December 31,	$	498,461		$	501,634		$	206,212		$	211,994
Funded (Underfunded) Status as of December 31,	$	(27,789	)	$	(22,009	)	$	41,515		$	40,830

PSO	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	260,710		$	279,685		$	77,779		$	99,680
Service Cost	5,207			5,562			839			1,372
Interest Cost	12,057			10,993			3,574			3,793
Actuarial (Gain) Loss	25,708			(15,381		)	(952		)	(22,070		)
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Participant Contributions	—			—			2,304			2,229
Medicare Subsidy	—			—			467			516
Benefit Obligation as of December 31,	$	285,405		$	260,710		$	76,706		$	77,779
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	264,597		$	264,823		$	96,333		$	90,521
Actual Gain on Plan Assets	24,607			19,892			4,709			11,324
Company Contributions	4,555			31			—			—
Participant Contributions	—			—			2,304			2,229
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Fair Value of Plan Assets as of December 31,	$	275,482		$	264,597		$	96,041		$	96,333
Funded (Underfunded) Status as of December 31,	$	(9,923	)	$	3,887		$	19,335		$	18,554

SWEPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	270,564		$	285,560		$	86,997		$	109,948
Service Cost	6,618			7,011			1,012			1,693
Interest Cost	12,651			11,454			3,992			4,301
Actuarial (Gain) Loss	27,511			(12,818		)	(2,296		)	(23,852		)
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Participant Contributions	—			—			2,532			2,410
Medicare Subsidy	—			—			499			554
Benefit Obligation as of December 31,	$	298,166		$	270,564		$	85,005		$	86,997
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	278,946		$	279,699		$	107,750		$	99,846
Actual Gain on Plan Assets	26,482			19,823			3,881			13,551
Company Contributions	3,902			67			—			—
Participant Contributions	—			—			2,532			2,410
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Fair Value of Plan Assets as of December 31,	$	290,152		$	278,946		$	106,432		$	107,750
Funded (Underfunded) Status as of December 31,	$	(8,014	)	$	8,382		$	21,427		$	20,753

Amounts Recognized on the Registrant Subsidiaries' Balance Sheets as of December 31, 2014 and 2013

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
APCo	2014			2013			2014			2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	56,498		$	27,945
Other Current Liabilities – Accrued Short-term Benefit Liability	(39		)	(34		)	(2,884		)	(2,970		)
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(60,477		)	(35,202		)	(40,129		)	(20,019		)
Funded (Underfunded) Status	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
I&M	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	40,749	$	39,590
Other Current Liabilities – Accrued Short-term Benefit Liability	(28		)	(43		)	—		—
Deferred Credits and Other Noncurrent Liabilities – Accrued Long-term Benefit Liability	(26,183		)	(15,513		)	—		127
Funded (Underfunded) Status	$	(26,211	)	$	(15,556	)	$	40,749	$	39,717

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
OPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	41,515	$	39,496
Other Current Liabilities – Accrued Short-term Benefit Liability	(1		)	(1		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(27,788		)	(22,008		)	—		1,334
Funded (Underfunded) Status	$	(27,789	)	$	(22,009	)	$	41,515	$	40,830

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
PSO	2014			2013			2014		2013
	(in thousands)
Employee Benefits and Pension Assets – Prepaid Benefit Costs	$	—		$	5,280		$	19,335	$	17,349
Other Current Liabilities – Accrued Short-term Benefit Liability	(190		)	(107		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(9,733		)	(1,286		)	—		1,205
Funded (Underfunded) Status	$	(9,923	)	$	3,887		$	19,335	$	18,554

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
SWEPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	9,506		$	21,427	$	19,210
Other Current Liabilities – Accrued Short-term Benefit Liability	(82		)	(79		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(7,932		)	(1,045		)	—		1,543
Funded (Underfunded) Status	$	(8,014	)	$	8,382		$	21,427	$	20,753

Amounts Included in AOCI and Regulatory Assets as of December 31, 2014 and 2013

APCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	235,000	$	220,047	$	65,841		$	72,732
Prior Service Cost (Credit)	523		720		(90,626		)	(100,676		)
Recorded as
Regulatory Assets	$	232,815	$	217,937	$	(20,330	)	$	(25,473	)
Deferred Income Taxes	948		991		(1,559		)	(865		)
Net of Tax AOCI	1,760		1,839		(2,896		)	(1,606		)

I&M	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	137,945	$	138,367	$	54,444		$	54,949
Prior Service Cost (Credit)	510		705		(85,117		)	(94,538		)
Recorded as
Regulatory Assets	$	134,121	$	134,560	$	(26,264	)	$	(34,428	)
Deferred Income Taxes	1,517		1,579		(1,543		)	(1,807		)
Net of Tax AOCI	2,817		2,933		(2,866		)	(3,354		)

OPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	226,755	$	227,668	$	30,651		$	29,804
Prior Service Cost (Credit)	393		550		(62,377		)	(69,300		)
Recorded as
Regulatory Assets	$	227,148	$	228,218	$	(31,726	)	$	(39,496	)

PSO	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	102,641	$	93,688	$	25,242		$	25,712
Prior Service Cost (Credit)	536		832		(38,771		)	(43,061		)
Recorded as
Regulatory Assets	$	103,177	$	94,520	$	(13,529	)	$	(17,349	)

SWEPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	104,903	$	95,492	$	32,377		$	32,772
Prior Service Cost (Credit)	655		1,004		(46,826		)	(51,982		)
Recorded as
Regulatory Assets	$	105,558	$	96,496	$	(8,959	)	$	(11,836	)
Deferred Income Taxes	—		—		(1,921		)	(2,580		)
Net of Tax AOCI	—		—		(3,569		)	(4,794		)

Components of the change in amounts included in AOCI and Regulatory Assets by Registrant Subsidiary during the years ended December 31, 2014 and 2013 are as follows:

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Loss During the Year	$	31,546		$	14,163		$	11,509		$	15,706		$	16,457
Amortization of Actuarial Loss	(16,593		)	(14,585		)	(12,422		)	(6,753		)	(7,046		)
Amortization of Prior Service Cost	(197		)	(195		)	(157		)	(296		)	(349		)
Change for the Year Ended December 31, 2014	$	14,756		$	(617	)	$	(1,070	)	$	8,657		$	9,062

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(58,411	)	$	(51,388	)	$	(253,392	)	$	(19,599	)	$	(16,133	)
Amortization of Actuarial Loss	(25,025		)	(21,688		)	(19,833		)	(9,845		)	(10,214		)
Amortization of Prior Service Cost	(198		)	(195		)	(157		)	(297		)	(349		)
Change for the Year Ended December 31, 2013	$	(83,634	)	$	(73,271	)	$	(273,382	)	$	(29,741	)	$	(26,696	)

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial (Gain) Loss During the Year	$	(2,309	)	$	1,863		$	3,226		$	639		$	840
Amortization of Actuarial Loss	(4,582		)	(2,368		)	(2,379		)	(1,109		)	(1,235		)
Amortization of Prior Service Credit	10,050			9,421			6,923			4,290			5,156
Change for the Year Ended December 31, 2014	$	3,159		$	8,916		$	7,770		$	3,820		$	4,761

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(82,192	)	$	(63,460	)	$	(111,922	)	$	(27,305	)	$	(30,523	)
Amortization of Actuarial Loss	(12,249		)	(7,526		)	(8,633		)	(3,476		)	(3,928		)
Amortization of Prior Service Credit	10,050			9,421			6,962			4,289			5,156
Change for the Year Ended December 31, 2013	$	(84,391	)	$	(61,565	)	$	(113,593	)	$	(26,492	)	$	(29,295	)

Pension and Other Postretirement Benefits Plans’ Assets

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	76,107	$	—	$	—	$	—		$	76,107		11.9	%
International	64,930		—		—		—			64,930			10.1	%
Options	—		1,822		—		—			1,822			0.3	%
Real Estate Investment Trusts	7,019		—		—		—			7,019			1.1	%
Common Collective Trust – Global	—		48,751		—		—			48,751			7.6	%
Common Collective Trust – International	—		2,390		—		—			2,390			0.4	%
Subtotal – Equities	148,056		52,963		—		—			201,019			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,904		—		—			3,904			0.6	%
United States Government and Agency Securities	—		58,164		—		—			58,164			9.0	%
Corporate Debt	—		232,667		—		—			232,667			36.2	%
Foreign Debt	—		51,806		—		—			51,806			8.1	%
State and Local Government	—		1,927		—		—			1,927			0.3	%
Other – Asset Backed	—		3,766		—		—			3,766			0.6	%
Subtotal – Fixed Income	—		352,234		—		—			352,234			54.8	%
Infrastructure	—		—		1,617		—			1,617			0.3	%
Real Estate	—		—		30,487		—			30,487			4.7	%
Alternative Investments	—		—		48,985		—			48,985			7.6	%
Securities Lending	—		28,414		—		—			28,414			4.4	%
Securities Lending Collateral (a)	—		—		—		(28,641		)	(28,641		)	(4.5	)%
Cash and Cash Equivalents	—		6,888		—		—			6,888			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,286			1,286			0.2	%
Total	$	148,056	$	440,499	$	81,089	$	(27,355	)	$	642,289		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	70,116	$	—	$	—	$	—		$	70,116		11.9	%
International	59,820		—		—		—			59,820			10.1	%
Options	—		1,678		—		—			1,678			0.3	%
Real Estate Investment Trusts	6,467		—		—		—			6,467			1.1	%
Common Collective Trust – Global	—		44,914		—		—			44,914			7.6	%
Common Collective Trust – International	—		2,201		—		—			2,201			0.4	%
Subtotal – Equities	136,403		48,793		—		—			185,196			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,597		—		—			3,597			0.6	%
United States Government and Agency Securities	—		53,586		—		—			53,586			9.0	%
Corporate Debt	—		214,355		—		—			214,355			36.2	%
Foreign Debt	—		47,728		—		—			47,728			8.1	%
State and Local Government	—		1,775		—		—			1,775			0.3	%
Other – Asset Backed	—		3,470		—		—			3,470			0.6	%
Subtotal – Fixed Income	—		324,511		—		—			324,511			54.8	%
Infrastructure	—		—		1,490		—			1,490			0.3	%
Real Estate	—		—		28,088		—			28,088			4.7	%
Alternative Investments	—		—		45,130		—			45,130			7.6	%
Securities Lending	—		26,178		—		—			26,178			4.4	%
Securities Lending Collateral (a)	—		—		—		(26,386		)	(26,386		)	(4.5	)%
Cash and Cash Equivalents	—		6,345		—		—			6,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,185			1,185			0.2	%
Total	$	136,403	$	405,827	$	74,708	$	(25,201	)	$	591,737		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,064	$	—	$	—	$	—		$	59,064		11.9	%
International	50,390		—		—		—			50,390			10.1	%
Options	—		1,414		—		—			1,414			0.3	%
Real Estate Investment Trusts	5,448		—		—		—			5,448			1.1	%
Common Collective Trust – Global	—		37,834		—		—			37,834			7.6	%
Common Collective Trust – International	—		1,854		—		—			1,854			0.4	%
Subtotal – Equities	114,902		41,102		—		—			156,004			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,030		—		—			3,030			0.6	%
United States Government and Agency Securities	—		45,139		—		—			45,139			9.0	%
Corporate Debt	—		180,566		—		—			180,566			36.2	%
Foreign Debt	—		40,205		—		—			40,205			8.1	%
State and Local Government	—		1,496		—		—			1,496			0.3	%
Other – Asset Backed	—		2,923		—		—			2,923			0.6	%
Subtotal – Fixed Income	—		273,359		—		—			273,359			54.8	%
Infrastructure	—		—		1,255		—			1,255			0.3	%
Real Estate	—		—		23,660		—			23,660			4.7	%
Alternative Investments	—		—		38,016		—			38,016			7.6	%
Securities Lending	—		22,051		—		—			22,051			4.4	%
Securities Lending Collateral (a)	—		—		—		(22,227		)	(22,227		)	(4.5	)%
Cash and Cash Equivalents	—		5,345		—		—			5,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		998			998			0.2	%
Total	$	114,902	$	341,857	$	62,931	$	(21,229	)	$	498,461		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	32,642	$	—	$	—	$	—		$	32,642		11.9	%
International	27,849		—		—		—			27,849			10.1	%
Options	—		781		—		—			781			0.3	%
Real Estate Investment Trusts	3,011		—		—		—			3,011			1.1	%
Common Collective Trust - Global	—		20,910		—		—			20,910			7.6	%
Common Collective Trust – International	—		1,025		—		—			1,025			0.4	%
Subtotal – Equities	63,502		22,716		—		—			86,218			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,675		—		—			1,675			0.6	%
United States Government and Agency Securities	—		24,947		—		—			24,947			9.0	%
Corporate Debt	—		99,792		—		—			99,792			36.2	%
Foreign Debt	—		22,220		—		—			22,220			8.1	%
State and Local Government	—		827		—		—			827			0.3	%
Other – Asset Backed	—		1,615		—		—			1,615			0.6	%
Subtotal – Fixed Income	—		151,076		—		—			151,076			54.8	%
Infrastructure	—		—		693		—			693			0.3	%
Real Estate	—		—		13,076		—			13,076			4.7	%
Alternative Investments	—		—		21,010		—			21,010			7.6	%
Securities Lending	—		12,187		—		—			12,187			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,284		)	(12,284		)	(4.5	)%
Cash and Cash Equivalents	—		2,954		—		—			2,954			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		552			552			0.2	%
Total	$	63,502	$	188,933	$	34,779	$	(11,732	)	$	275,482		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	34,382	$	—	$	—	$	—		$	34,382		11.9	%
International	29,332		—		—		—			29,332			10.1	%
Options	—		823		—		—			823			0.3	%
Real Estate Investment Trusts	3,171		—		—		—			3,171			1.1	%
Common Collective Trust – Global	—		22,023		—		—			22,023			7.6	%
Common Collective Trust – International	—		1,079		—		—			1,079			0.4	%
Subtotal – Equities	66,885		23,925		—		—			90,810			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,764		—		—			1,764			0.6	%
United States Government and Agency Securities	—		26,275		—		—			26,275			9.0	%
Corporate Debt	—		105,107		—		—			105,107			36.2	%
Foreign Debt	—		23,403		—		—			23,403			8.1	%
State and Local Government	—		871		—		—			871			0.3	%
Other – Asset Backed	—		1,701		—		—			1,701			0.6	%
Subtotal – Fixed Income	—		159,121		—		—			159,121			54.8	%
Infrastructure	—		—		730		—			730			0.3	%
Real Estate	—		—		13,772		—			13,772			4.7	%
Alternative Investments	—		—		22,129		—			22,129			7.6	%
Securities Lending	—		12,836		—		—			12,836			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,938		)	(12,938		)	(4.5	)%
Cash and Cash Equivalents	—		3,111		—		—			3,111			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		581			581			0.2	%
Total	$	66,885	$	198,993	$	36,631	$	(12,357	)	$	290,152		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy by Registrant Subsidiary for pension assets:

APCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	31,757		$	43,939	$	75,696
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		2,829			3,276		6,105
Relating to Assets Sold During the Period	—		9,831			1,616		11,447
Purchases and Sales	1,617		(13,930		)	154		(12,159		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,617	$	30,487		$	48,985	$	81,089

I&M	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	28,275		$	39,121	$	67,396
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		417			3,902		4,319
Relating to Assets Sold During the Period	—		1,448			1,924		3,372
Purchases and Sales	1,490		(2,052		)	183		(379		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,490	$	28,088		$	45,130	$	74,708

OPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	25,367		$	35,098	$	60,465
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		3,802			1,895		5,697
Relating to Assets Sold During the Period	—		13,219			934		14,153
Purchases and Sales	1,255		(18,728		)	89		(17,384		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,255	$	23,660		$	38,016	$	62,931

PSO	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	13,380		$	18,513	$	31,893
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		683			1,622		2,305
Relating to Assets Sold During the Period	—		2,371			799		3,170
Purchases and Sales	693		(3,358		)	76		(2,589		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	693	$	13,076		$	21,010	$	34,779

SWEPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	14,106		$	19,517	$	33,623
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		745			1,696		2,441
Relating to Assets Sold During the Period	—		2,590			836		3,426
Purchases and Sales	730		(3,669		)	80		(2,859		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	730	$	13,772		$	22,129	$	36,631

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	77,221	$	—	$	—	$	—	$	77,221	27.5	%
International	93,871		—		—		—		93,871		33.5	%
Options	—		2,712		—		—		2,712		1.0	%
Common Collective Trust – Global	—		4,905		—		—		4,905		1.8	%
Subtotal – Equities	171,092		7,617		—		—		178,709		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		17,188		—		—		17,188		6.1	%
United States Government and Agency Securities	—		11,775		—		—		11,775		4.2	%
Corporate Debt	—		20,787		—		—		20,787		7.4	%
Foreign Debt	—		3,532		—		—		3,532		1.3	%
State and Local Government	—		975		—		—		975		0.3	%
Other – Asset Backed	—		820		—		—		820		0.3	%
Subtotal – Fixed Income	—		55,077		—		—		55,077		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,709		—		—		1,709		0.6	%
United States Bonds	—		35,131		—		—		35,131		12.5	%
Subtotal – Trust Owned Life Insurance	—		36,840		—		—		36,840		13.1	%
Cash and Cash Equivalents	7,751		1,586		—		—		9,337		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		670		670		0.2	%
Total	$	178,843	$	101,120	$	—	$	670	$	280,633	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	55,695	$	—	$	—	$	—	$	55,695	27.5	%
International	67,705		—		—		—		67,705		33.5	%
Options	—		1,956		—		—		1,956		1.0	%
Common Collective Trust – Global	—		3,538		—		—		3,538		1.8	%
Subtotal – Equities	123,400		5,494		—		—		128,894		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,397		—		—		12,397		6.1	%
United States Government and Agency Securities	—		8,493		—		—		8,493		4.2	%
Corporate Debt	—		14,993		—		—		14,993		7.4	%
Foreign Debt	—		2,547		—		—		2,547		1.3	%
State and Local Government	—		704		—		—		704		0.3	%
Other – Asset Backed	—		592		—		—		592		0.3	%
Subtotal – Fixed Income	—		39,726		—		—		39,726		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,232		—		—		1,232		0.6	%
United States Bonds	—		25,339		—		—		25,339		12.5	%
Subtotal – Trust Owned Life Insurance	—		26,571		—		—		26,571		13.1	%
Cash and Cash Equivalents	5,590		1,144		—		—		6,734		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		483		483		0.2	%
Total	$	128,990	$	72,935	$	—	$	483	$	202,408	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	56,743	$	—	$	—	$	—	$	56,743	27.5	%
International	68,977		—		—		—		68,977		33.5	%
Options	—		1,993		—		—		1,993		1.0	%
Common Collective Trust – Global	—		3,604		—		—		3,604		1.8	%
Subtotal – Equities	125,720		5,597		—		—		131,317		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,630		—		—		12,630		6.1	%
United States Government and Agency Securities	—		8,653		—		—		8,653		4.2	%
Corporate Debt	—		15,274		—		—		15,274		7.4	%
Foreign Debt	—		2,595		—		—		2,595		1.3	%
State and Local Government	—		717		—		—		717		0.3	%
Other – Asset Backed	—		603		—		—		603		0.3	%
Subtotal – Fixed Income	—		40,472		—		—		40,472		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,256		—		—		1,256		0.6	%
United States Bonds	—		25,815		—		—		25,815		12.5	%
Subtotal – Trust Owned Life Insurance	—		27,071		—		—		27,071		13.1	%
Cash and Cash Equivalents	5,695		1,165		—		—		6,860		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		492		492		0.2	%
Total	$	131,415	$	74,305	$	—	$	492	$	206,212	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,425	$	—	$	—	$	—	$	26,425	27.5	%
International	32,126		—		—		—		32,126		33.5	%
Options	—		928		—		—		928		1.0	%
Common Collective Trust – Global	—		1,679		—		—		1,679		1.8	%
Subtotal – Equities	58,551		2,607		—		—		61,158		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		5,882		—		—		5,882		6.1	%
United States Government and Agency Securities	—		4,030		—		—		4,030		4.2	%
Corporate Debt	—		7,114		—		—		7,114		7.4	%
Foreign Debt	—		1,209		—		—		1,209		1.3	%
State and Local Government	—		334		—		—		334		0.3	%
Other – Asset Backed	—		281		—		—		281		0.3	%
Subtotal – Fixed Income	—		18,850		—		—		18,850		19.6	%
Trust Owned Life Insurance:
International Equities	—		585		—		—		585		0.6	%
United States Bonds	—		12,023		—		—		12,023		12.5	%
Subtotal – Trust Owned Life Insurance	—		12,608		—		—		12,608		13.1	%
Cash and Cash Equivalents	2,653		543		—		—		3,196		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		229		229		0.2	%
Total	$	61,204	$	34,608	$	—	$	229	$	96,041	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	29,286	$	—	$	—	$	—	$	29,286	27.5	%
International	35,601		—		—		—		35,601		33.5	%
Options	—		1,029		—		—		1,029		1.0	%
Common Collective Trust – Global	—		1,860		—		—		1,860		1.8	%
Subtotal – Equities	64,887		2,889		—		—		67,776		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		6,519		—		—		6,519		6.1	%
United States Government and Agency Securities	—		4,466		—		—		4,466		4.2	%
Corporate Debt	—		7,884		—		—		7,884		7.4	%
Foreign Debt	—		1,339		—		—		1,339		1.3	%
State and Local Government	—		370		—		—		370		0.3	%
Other – Asset Backed	—		311		—		—		311		0.3	%
Subtotal – Fixed Income	—		20,889		—		—		20,889		19.6	%
Trust Owned Life Insurance:
International Equities	—		648		—		—		648		0.6	%
United States Bonds	—		13,324		—		—		13,324		12.5	%
Subtotal – Trust Owned Life Insurance	—		13,972		—		—		13,972		13.1	%
Cash and Cash Equivalents	2,940		601		—		—		3,541		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		254		254		0.2	%
Total	$	67,827	$	38,351	$	—	$	254	$	106,432	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	145,515	$	—	$	—	$	—		$	145,515		23.2	%
International	68,591		—		—		—			68,591			10.9	%
Real Estate Investment Trusts	7,718		—		—		—			7,718			1.2	%
Common Collective Trust – International	—		1,302		—		—			1,302			0.2	%
Subtotal – Equities	221,824		1,302		—		—			223,126			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,456		—		—			3,456			0.5	%
United States Government and Agency Securities	—		51,556		—		—			51,556			8.2	%
Corporate Debt	—		213,280		—		—			213,280			34.0	%
Foreign Debt	—		45,818		—		—			45,818			7.3	%
State and Local Government	—		3,730		—		—			3,730			0.6	%
Other – Asset Backed	—		4,437		—		—			4,437			0.7	%
Subtotal – Fixed Income	—		322,277		—		—			322,277			51.3	%
Real Estate	—		—		31,757		—			31,757			5.0	%
Alternative Investments	—		—		43,939		—			43,939			7.0	%
Securities Lending	—		4,689		—		—			4,689			0.8	%
Securities Lending Collateral (a)	—		—		—		(6,024		)	(6,024		)	(0.9	)%
Cash and Cash Equivalents	—		6,476		—		—			6,476			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,755			1,755			0.3	%
Total	$	221,824	$	334,744	$	75,696	$	(4,269	)	$	627,995		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	129,561	$	—	$	—	$	—		$	129,561		23.2	%
International	61,071		—		—		—			61,071			10.9	%
Real Estate Investment Trusts	6,872		—		—		—			6,872			1.2	%
Common Collective Trust – International	—		1,159		—		—			1,159			0.2	%
Subtotal – Equities	197,504		1,159		—		—			198,663			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,077		—		—			3,077			0.5	%
United States Government and Agency Securities	—		45,904		—		—			45,904			8.2	%
Corporate Debt	—		189,896		—		—			189,896			34.0	%
Foreign Debt	—		40,794		—		—			40,794			7.3	%
State and Local Government	—		3,321		—		—			3,321			0.6	%
Other – Asset Backed	—		3,951		—		—			3,951			0.7	%
Subtotal – Fixed Income	—		286,943		—		—			286,943			51.3	%
Real Estate	—		—		28,275		—			28,275			5.0	%
Alternative Investments	—		—		39,121		—			39,121			7.0	%
Securities Lending	—		4,175		—		—			4,175			0.8	%
Securities Lending Collateral (a)	—		—		—		(5,363		)	(5,363		)	(0.9	)%
Cash and Cash Equivalents	—		5,766		—		—			5,766			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,563			1,563			0.3	%
Total	$	197,504	$	298,043	$	67,396	$	(3,800	)	$	559,143		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	116,233	$	—	$	—	$	—		$	116,233		23.2	%
International	54,790		—		—		—			54,790			10.9	%
Real Estate Investment Trusts	6,165		—		—		—			6,165			1.2	%
Common Collective Trust – International	—		1,040		—		—			1,040			0.2	%
Subtotal – Equities	177,188		1,040		—		—			178,228			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		2,761		—		—			2,761			0.5	%
United States Government and Agency Securities	—		41,183		—		—			41,183			8.2	%
Corporate Debt	—		170,365		—		—			170,365			34.0	%
Foreign Debt	—		36,599		—		—			36,599			7.3	%
State and Local Government	—		2,980		—		—			2,980			0.6	%
Other – Asset Backed	—		3,545		—		—			3,545			0.7	%
Subtotal – Fixed Income	—		257,433		—		—			257,433			51.3	%
Real Estate	—		—		25,367		—			25,367			5.0	%
Alternative Investments	—		—		35,098		—			35,098			7.0	%
Securities Lending	—		3,745		—		—			3,745			0.8	%
Securities Lending Collateral (a)	—		—		—		(4,812		)	(4,812		)	(0.9	)%
Cash and Cash Equivalents	—		5,173		—		—			5,173			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,402			1,402			0.3	%
Total	$	177,188	$	267,391	$	60,465	$	(3,410	)	$	501,634		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	61,309	$	—	$	—	$	—		$	61,309		23.2	%
International	28,900		—		—		—			28,900			10.9	%
Real Estate Investment Trusts	3,252		—		—		—			3,252			1.2	%
Common Collective Trust – International	—		548		—		—			548			0.2	%
Subtotal – Equities	93,461		548		—		—			94,009			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,456		—		—			1,456			0.5	%
United States Government and Agency Securities	—		21,723		—		—			21,723			8.2	%
Corporate Debt	—		89,863		—		—			89,863			34.0	%
Foreign Debt	—		19,305		—		—			19,305			7.3	%
State and Local Government	—		1,572		—		—			1,572			0.6	%
Other – Asset Backed	—		1,870		—		—			1,870			0.7	%
Subtotal – Fixed Income	—		135,789		—		—			135,789			51.3	%
Real Estate	—		—		13,380		—			13,380			5.0	%
Alternative Investments	—		—		18,513		—			18,513			7.0	%
Securities Lending	—		1,976		—		—			1,976			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,538		)	(2,538		)	(0.9	)%
Cash and Cash Equivalents	—		2,729		—		—			2,729			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		739			739			0.3	%
Total	$	93,461	$	141,042	$	31,893	$	(1,799	)	$	264,597		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	64,634	$	—	$	—	$	—		$	64,634		23.2	%
International	30,467		—		—		—			30,467			10.9	%
Real Estate Investment Trusts	3,428		—		—		—			3,428			1.2	%
Common Collective Trust – International	—		578		—		—			578			0.2	%
Subtotal – Equities	98,529		578		—		—			99,107			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,535		—		—			1,535			0.5	%
United States Government and Agency Securities	—		22,901		—		—			22,901			8.2	%
Corporate Debt	—		94,736		—		—			94,736			34.0	%
Foreign Debt	—		20,352		—		—			20,352			7.3	%
State and Local Government	—		1,657		—		—			1,657			0.6	%
Other – Asset Backed	—		1,971		—		—			1,971			0.7	%
Subtotal – Fixed Income	—		143,152		—		—			143,152			51.3	%
Real Estate	—		—		14,106		—			14,106			5.0	%
Alternative Investments	—		—		19,517		—			19,517			7.0	%
Securities Lending	—		2,083		—		—			2,083			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,676		)	(2,676		)	(0.9	)%
Cash and Cash Equivalents	—		2,877		—		—			2,877			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		780			780			0.3	%
Total	$	98,529	$	148,690	$	33,623	$	(1,896	)	$	278,946		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for pension assets by Registrant Subsidiary:

APCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	29,063		$	25,888	$	54,951
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,861			1,932		5,793
Relating to Assets Sold During the Period	—			1,949		1,949
Purchases and Sales	(1,167		)	14,170		13,003
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	31,757		$	43,939	$	75,696

I&M	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	25,811		$	22,992	$	48,803
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,531			1,727		5,258
Relating to Assets Sold During the Period	—			1,741		1,741
Purchases and Sales	(1,067		)	12,661		11,594
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	28,275		$	39,121	$	67,396

OPCo	Real Estate			Alternative Investments			Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	47,464		$	42,279		$	89,743
Transfer of OPCo Generation Plan Assets	(26,218		)	(36,275		)	(62,493		)
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	5,907			3,113			9,020
Relating to Assets Sold During the Period	—			3,142			3,142
Purchases and Sales	(1,786		)	22,839			21,053
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Balance as of December 31, 2013	$	25,367		$	35,098		$	60,465

PSO	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	12,382		$	11,030	$	23,412
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,430			801		2,231
Relating to Assets Sold During the Period	—			808		808
Purchases and Sales	(432		)	5,874		5,442
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	13,380		$	18,513	$	31,893

SWEPCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	13,078		$	11,649	$	24,727
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,474			841		2,315
Relating to Assets Sold During the Period	—			850		850
Purchases and Sales	(446		)	6,177		5,731
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	14,106		$	19,517	$	33,623

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	79,369	$	—	$	—	$	—	$	79,369	27.9	%
International	103,188		—		—		—		103,188		36.2	%
Common Collective Trust – Global	—		2,463		—		—		2,463		0.9	%
Subtotal – Equities	182,557		2,463		—		—		185,020		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		14,737		—		—		14,737		5.2	%
United States Government and Agency Securities	—		9,476		—		—		9,476		3.3	%
Corporate Debt	—		18,458		—		—		18,458		6.5	%
Foreign Debt	—		3,605		—		—		3,605		1.2	%
State and Local Government	—		776		—		—		776		0.3	%
Other – Asset Backed	—		1,362		—		—		1,362		0.5	%
Subtotal – Fixed Income	—		48,414		—		—		48,414		17.0	%
Trust Owned Life Insurance:
International Equities	—		2,219		—		—		2,219		0.8	%
United States Bonds	—		35,470		—		—		35,470		12.4	%
Subtotal – Trust Owned Life Insurance	—		37,689		—		—		37,689		13.2	%
Cash and Cash Equivalents	11,441		1,470		—		—		12,911		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		806		806		0.3	%
Total	$	193,998	$	90,036	$	—	$	806	$	284,840	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	57,460	$	—	$	—	$	—	$	57,460	27.9	%
International	74,705		—		—		—		74,705		36.2	%
Common Collective Trust – Global	—		1,783		—		—		1,783		0.9	%
Subtotal – Equities	132,165		1,783		—		—		133,948		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,669		—		—		10,669		5.2	%
United States Government and Agency Securities	—		6,860		—		—		6,860		3.3	%
Corporate Debt	—		13,363		—		—		13,363		6.5	%
Foreign Debt	—		2,610		—		—		2,610		1.2	%
State and Local Government	—		562		—		—		562		0.3	%
Other – Asset Backed	—		986		—		—		986		0.5	%
Subtotal – Fixed Income	—		35,050		—		—		35,050		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,607		—		—		1,607		0.8	%
United States Bonds	—		25,679		—		—		25,679		12.4	%
Subtotal – Trust Owned Life Insurance	—		27,286		—		—		27,286		13.2	%
Cash and Cash Equivalents	8,283		1,064		—		—		9,347		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		583		583		0.3	%
Total	$	140,448	$	65,183	$	—	$	583	$	206,214	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,069	$	—	$	—	$	—	$	59,069	27.9	%
International	76,799		—		—		—		76,799		36.2	%
Common Collective Trust – Global	—		1,833		—		—		1,833		0.9	%
Subtotal – Equities	135,868		1,833		—		—		137,701		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,968		—		—		10,968		5.2	%
United States Government and Agency Securities	—		7,053		—		—		7,053		3.3	%
Corporate Debt	—		13,738		—		—		13,738		6.5	%
Foreign Debt	—		2,683		—		—		2,683		1.2	%
State and Local Government	—		577		—		—		577		0.3	%
Other – Asset Backed	—		1,014		—		—		1,014		0.5	%
Subtotal – Fixed Income	—		36,033		—		—		36,033		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,652		—		—		1,652		0.8	%
United States Bonds	—		26,399		—		—		26,399		12.4	%
Subtotal – Trust Owned Life Insurance	—		28,051		—		—		28,051		13.2	%
Cash and Cash Equivalents	8,515		1,094		—		—		9,609		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		600		600		0.3	%
Total	$	144,383	$	67,011	$	—	$	600	$	211,994	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,842	$	—	$	—	$	—	$	26,842	27.9	%
International	34,898		—		—		—		34,898		36.2	%
Common Collective Trust – Global	—		833		—		—		833		0.9	%
Subtotal – Equities	61,740		833		—		—		62,573		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		4,984		—		—		4,984		5.2	%
United States Government and Agency Securities	—		3,205		—		—		3,205		3.3	%
Corporate Debt	—		6,243		—		—		6,243		6.5	%
Foreign Debt	—		1,219		—		—		1,219		1.2	%
State and Local Government	—		262		—		—		262		0.3	%
Other – Asset Backed	—		461		—		—		461		0.5	%
Subtotal – Fixed Income	—		16,374		—		—		16,374		17.0	%
Trust Owned Life Insurance:
International Equities	—		751		—		—		751		0.8	%
United States Bonds	—		11,996		—		—		11,996		12.4	%
Subtotal – Trust Owned Life Insurance	—		12,747		—		—		12,747		13.2	%
Cash and Cash Equivalents	3,869		497		—		—		4,366		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		273		273		0.3	%
Total	$	65,609	$	30,451	$	—	$	273	$	96,333	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	30,022	$	—	$	—	$	—	$	30,022	27.9	%
International	39,034		—		—		—		39,034		36.2	%
Common Collective Trust – Global	—		932		—		—		932		0.9	%
Subtotal – Equities	69,056		932		—		—		69,988		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		5,575		—		—		5,575		5.2	%
United States Government and Agency Securities	—		3,585		—		—		3,585		3.3	%
Corporate Debt	—		6,982		—		—		6,982		6.5	%
Foreign Debt	—		1,364		—		—		1,364		1.2	%
State and Local Government	—		294		—		—		294		0.3	%
Other – Asset Backed	—		515		—		—		515		0.5	%
Subtotal – Fixed Income	—		18,315		—		—		18,315		17.0	%
Trust Owned Life Insurance:
International Equities	—		840		—		—		840		0.8	%
United States Bonds	—		13,418		—		—		13,418		12.4	%
Subtotal – Trust Owned Life Insurance	—		14,258		—		—		14,258		13.2	%
Cash and Cash Equivalents	4,328		556		—		—		4,884		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		305		305		0.3	%
Total	$	73,384	$	34,061	$	—	$	305	$	107,750	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Determination of Pension Expense

The determination of pension expense or income is based on a market-related valuation of assets which reduces year-to-year volatility.  This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur.  Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

The accumulated benefit obligation for the pension plans is as follows:

Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	688,632	$	598,190	$	512,467	$	270,059	$	281,210
Nonqualified Pension Plans	464		470		69		2,750		1,749
Total as of December 31, 2014	$	689,096	$	598,660	$	512,536	$	272,809	$	282,959
Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	653,968	$	560,443	$	512,798	$	248,472	$	256,083
Nonqualified Pension Plans	200		326		6		1,387		1,115
Total as of December 31, 2013	$	654,168	$	560,769	$	512,804	$	249,859	$	257,198

For the underfunded pension plans that had an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of these plans as of December 31, 2014 and 2013 were as follows:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	702,805		$	617,948		$	526,250		$	2,770		$	1,790
Accumulated Benefit Obligation	$	689,096		$	598,660		$	512,536		$	2,750		$	1,749
Fair Value of Plan Assets	642,289			591,737			498,461			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2014	$	(46,807	)	$	(6,923	)	$	(14,075	)	$	(2,750	)	$	(1,749	)
	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	663,231		$	574,699		$	523,643		$	1,394		$	1,124
Accumulated Benefit Obligation	$	654,168		$	560,769		$	512,804		$	1,387		$	1,115
Fair Value of Plan Assets	627,995			559,143			501,634			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2013	$	(26,173	)	$	(1,626	)	$	(11,170	)	$	(1,387	)	$	(1,115	)

Estimated Future Benefit Payments and Contributions

The estimated pension benefit payments and contributions to the trust are at least the minimum amount required by the Employee Retirement Income Security Act plus payment of unfunded nonqualified benefits.  For the qualified pension plan, additional discretionary contributions may also be made to maintain the funded status of the plan.   For OPEB plans, expected payments include the payment of unfunded benefits.  The following table provides the estimated contributions and payments by Registrant Subsidiary for 2015:

Company	Pension Plans		Other Postretirement Benefit Plans
	(in thousands)
APCo	$	11,631	$	2,884
I&M	12,492		—
OPCo	7,847		—
PSO	6,656		—
SWEPCo	7,840		—

The tables below reflect the total benefits expected to be paid from the plan or from the Registrant Subsidiaries' assets.  The payments include the participants’ contributions to the plan for their share of the cost.  Effective for employees hired after December 2013, retiree medical coverage will not be provided.  Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results.  The estimated payments for the pension benefits and OPEB are as follows:

Pension Plans	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	42,859	$	33,114	$	36,277	$	18,950	$	18,872
2016	43,091		33,813		36,174		19,626		18,747
2017	43,484		35,748		35,571		20,175		20,407
2018	45,122		36,948		35,822		21,118		21,019
2019	45,488		38,727		36,179		21,732		22,059
Years 2020 to 2024, in Total	236,107		209,813		176,022		109,800		118,909

Other Postretirement Benefit Plans: Benefit Payments	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	24,828	$	15,088	$	16,379	$	6,989	$	7,401
2016	24,603		15,363		16,289		7,067		7,504
2017	24,468		15,484		16,088		7,074		7,674
2018	24,820		15,637		16,122		7,132		7,840
2019	24,290		15,804		16,079		7,278		7,885
Years 2020 to 2024, in Total	121,401		84,026		80,066		38,852		43,503

Other Postretirement Benefit Plans: Medicare Subsidy Receipts	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	232	$	—	$	—	$	—	$	—
2016	236		—		—		—		—
2017	234		—		—		—		—
2018	231		—		—		—		—
2019	230		—		—		—		—
Years 2020 to 2024, in Total	1,080		—		—		—		—

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (credit) by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

APCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	7,036		$	6,171		$	7,565		$	1,448		$	2,566		$	5,387
Interest Cost	29,624			27,662			30,211			12,788			13,454			18,462
Expected Return on Plan Assets	(33,927		)	(37,041		)	(41,944		)	(18,533		)	(18,147		)	(16,753		)
Amortization of Transition Obligation	—			—			—			—			—			780
Amortization of Prior Service Cost (Credit)	197			198			475			(10,050		)	(10,050		)	(2,862		)
Amortization of Net Actuarial Loss	16,593			25,025			20,339			4,582			12,249			10,526
Net Periodic Benefit Cost (Credit)	19,523			22,015			16,646			(9,765		)	72			15,540
Capitalized Portion	(6,819		)	(7,529		)	(6,525		)	3,411			(25		)	(6,092		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	12,704		$	14,486		$	10,121		$	(6,354	)	$	47		$	9,448

I&M	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	10,068		$	8,736		$	9,908		$	1,947		$	3,219		$	6,621
Interest Cost	26,293			24,100			26,245			7,638			8,221			12,785
Expected Return on Plan Assets	(30,993		)	(32,826		)	(37,566		)	(13,454		)	(13,183		)	(12,847		)
Amortization of Transition Obligation	—			—			—			—			—			132
Amortization of Prior Service Cost (Credit)	195			195			407			(9,421		)	(9,421		)	(2,383		)
Amortization of Net Actuarial Loss	14,585			21,688			17,569			2,368			7,526			7,050
Net Periodic Benefit Cost (Credit)	20,148			21,893			16,563			(10,922		)	(3,638		)	11,358
Capitalized Portion	(4,638		)	(4,576		)	(3,114		)	2,514			760			(2,135		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	15,510		$	17,317		$	13,449		$	(8,408	)	$	(2,878	)	$	9,223

OPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,140		$	5,285		$	11,003		$	1,026		$	2,882		$	8,748
Interest Cost	22,105			21,939			45,194			7,601			9,494			24,189
Expected Return on Plan Assets	(26,427		)	(29,919		)	(68,401		)	(13,519		)	(13,468		)	(22,555		)
Amortization of Transition Obligation	—			—			—			—			—			104
Amortization of Prior Service Cost (Credit)	157			157			743			(6,923		)	(6,962		)	(3,873		)
Amortization of Net Actuarial Loss	12,422			19,833			30,439			2,379			8,633			13,669
Net Periodic Benefit Cost (Credit)	13,397			17,295			18,978			(9,436		)	579			20,282
Capitalized Portion	(5,479		)	(6,192		)	(7,060		)	3,859			(207		)	(7,545		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,918		$	11,103		$	11,918		$	(5,577	)	$	372		$	12,737

PSO	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,207		$	5,562		$	5,951		$	839		$	1,372		$	2,836
Interest Cost	12,057			10,993			12,301			3,574			3,793			5,797
Expected Return on Plan Assets	(14,604		)	(15,675		)	(18,015		)	(6,300		)	(6,089		)	(5,922		)
Amortization of Prior Service Cost (Credit)	296			297			(948		)	(4,290		)	(4,289		)	(1,079		)
Amortization of Net Actuarial Loss	6,753			9,845			8,206			1,109			3,476			3,189
Net Periodic Benefit Cost (Credit)	9,709			11,022			7,495			(5,068		)	(1,737		)	4,821
Capitalized Portion	(3,320		)	(3,384		)	(2,533		)	1,733			533			(1,629		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	6,389		$	7,638		$	4,962		$	(3,335	)	$	(1,204	)	$	3,192

SWEPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	6,618		$	7,011		$	7,099		$	1,012		$	1,693		$	3,324
Interest Cost	12,651			11,454			12,537			3,992			4,301			6,673
Expected Return on Plan Assets	(15,427		)	(16,509		)	(18,866		)	(7,016		)	(6,881		)	(6,795		)
Amortization of Prior Service Cost (Credit)	349			349			(793		)	(5,156		)	(5,156		)	(933		)
Amortization of Net Actuarial Loss	7,046			10,214			8,330			1,235			3,928			3,659
Net Periodic Benefit Cost (Credit)	11,237			12,519			8,307			(5,933		)	(2,115		)	5,928
Capitalized Portion	(3,391		)	(3,518		)	(2,924		)	1,791			594			(2,087		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,846		$	9,001		$	5,383		$	(4,142	)	$	(1,521	)	$	3,841

Estimated amounts expected to be amortized to net periodic benefit costs (credits) and the impact on each Registrant Subsidiaries’ balance sheet during 2015 are shown in the following tables:

	APCo			I&M			OPCo			PSO			SWEPCo
Pension Plans – Components	(in thousands)
Net Actuarial Loss	$	14,457		$	12,713		$	10,823		$	5,891		$	6,146
Prior Service Cost	180			181			140			252			308
Total Estimated 2015 Amortization	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
Pension Plans – Expected to be Recorded as
Regulatory Asset	$	14,560		$	12,114		$	10,963		$	6,143		$	6,454
Deferred Income Taxes	27			273			—			—			—
Net of Tax AOCI	50			507			—			—			—
Total	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
	APCo			I&M			OPCo			PSO			SWEPCo
Other Postretirement Benefit Plans – Components	(in thousands)
Net Actuarial Loss	$	3,353		$	1,814		$	1,848		$	861		$	954
Prior Service Credit	(10,050		)	(9,421		)	(6,922		)	(4,290		)	(5,156		)
Total Estimated 2015 Amortization	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)
Other Postretirement Benefit Plans – Expected to be Recorded as
Regulatory Asset	$	(3,693	)	$	(6,934	)	$	(5,074	)	$	(3,429	)	$	(2,687	)
Deferred Income Taxes	(1,051		)	(236		)	—			—			(530		)
Net of Tax AOCI	(1,953		)	(437		)	—			—			(985		)
Total	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)

American Electric Power System Retirement Savings Plan

The Registrant Subsidiaries participate in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees who are not covered by a retirement savings plan of the United Mine Workers of America (UMWA).  This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for company matching contributions.  The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions.

The following table provides the cost for matching contributions to the retirement savings plans by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Company	2014		2013		2012
	(in thousands)
APCo	$	7,280	$	7,366	$	7,579
I&M	10,461		10,010		9,706
OPCo	5,207		6,502		10,798
PSO	4,026		3,784		3,732
SWEPCo	5,272		4,970		4,890

UMWA Benefits

APCo provides UMWA pension, health and welfare benefits for certain unionized mining retirees and their survivors who meet eligibility requirements.  UMWA trustees make final interpretive determinations with regard to all benefits.  The pension benefits are administered by UMWA trustees.  APCo administers the health and welfare benefits and pays them from its general assets.

The UMWA pension benefits are administered through a multiemployer plan that is different from single-employer plans as an employer’s contributions may be used to provide benefits to employees of other participating employers.  Required contributions not made by an employer may result in other employers bearing the unfunded plan obligations, while a withdrawing employer may be subject to a withdrawal liability.  UMWA pension benefits are provided through the United Mine Workers of America 1974 Pension Plan (Employer Identification Number: 52-1050282, Plan Number 002), which under the Pension Protection Act of 2006 (PPA) was in Critical Status for the plan year ending June 30, 2014 and in Seriously Endangered Status for the plan year ending June 30, 2013, without utilization of extended amortization provisions.  The Plan adopted a funding improvement plan in May 2012, as required under the PPA.

Contributions to the UMWA pension plan in 2014, 2013 and 2012 were immaterial and represent less than 5% of the total contributions in the plan’s latest annual report for the years ended June 30, 2014, 2013 and 2012.  UMWA pension contributions included a surcharge of 5% beginning December 2014 and are scheduled to include a surcharge of 10% beginning July 2015.  There are no minimum contributions for future years.

Indiana Michigan Power Co [Member]

Benefit Plans

BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Investments Held in Trust for Future Liabilities” and “Fair Value Measurements of Assets and Liabilities” sections of Note 1.

The Registrant Subsidiaries participate in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans.  Substantially all employees are covered by the qualified plan or both the qualified and a nonqualified pension plan.  The Registrant Subsidiaries also participate in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

Due to the Registrant Subsidiaries’ participation in AEP’s benefits plans, the assumptions used by the actuary and the accounting for the plans by each subsidiary are the same.  This section details the assumptions that apply to all Registrant Subsidiaries and the rate of compensation increase for each subsidiary.

The Registrant Subsidiaries recognize the funded status associated with defined benefit pension and OPEB plans in their balance sheets.  Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance.  The Registrant Subsidiaries recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of other comprehensive income, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost.  The Registrant Subsidiaries record a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that for ratemaking purposes are deferred for future recovery.  The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in an AOCI equity reduction or regulatory asset and deferred gains result in an AOCI equity addition or regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions as of December 31 of each year used in the measurement of the Registrant Subsidiaries’ benefit obligations are shown in the following tables:

	Pension Plans				Other Postretirement Benefit Plans
Assumption	2014		2013		2014		2013
Discount Rate	4.00	%	4.70	%	4.00	%	4.70	%

	Pension Plans
Assumption – Rate of Compensation Increase (a)	2014		2013
APCo	4.45	%	4.60	%
I&M	4.80	%	4.90	%
OPCo	4.80	%	5.00	%
PSO	4.80	%	4.90	%
SWEPCo	4.80	%	4.85	%

(a) Rates are for base pay only.  In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

A duration-based method is used to determine the discount rate for the plans.  A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability.  The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.  The discount rate is the same for each Registrant Subsidiary.

For 2014, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with the average increase shown in the table above.  The compensation increase rates reflect variations in each Registrant Subsidiaries' population participating in the pension plan.

Updated mortality assumptions based on mortality tables issued by the Society of Actuaries in October 2014 were used for the December 31, 2014 benefit obligation measurements. These updates resulted in approximate benefit obligation increases by Registrant Subsidiary as shown in the following table:

	Pension Plans		Other Postretirement Benefit Plans
Increase in Benefit Obligation	(in thousands)
APCo	$	17,946	$	2,271
I&M	15,117		1,644
OPCo	14,525		310
PSO	6,811		555
SWEPCo	6,445		775

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions as of January 1 of each year used in the measurement of each Registrant Subsidiaries’ benefit costs are shown in the following tables:

	Pension Plans						Other Postretirement Benefit Plans
Assumptions	2014		2013		2012		2014		2013		2012
Discount Rate	4.70	%	3.95	%	4.55	%	4.70	%	3.95	%	4.75	%
Expected Return on Plan Assets	6.00	%	6.50	%	7.25	%	6.75	%	7.00	%	7.25	%

	Pension Plans
Assumption – Rate of Compensation Increase	2014		2013		2012
APCo	4.60	%	4.70	%	4.70	%
I&M	4.90	%	5.00	%	5.00	%
OPCo	5.00	%	5.00	%	5.00	%
PSO	4.90	%	4.90	%	4.90	%
SWEPCo	4.85	%	4.75	%	4.75	%

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation and current prospects for economic growth.  The expected return on plan assets is the same for each Registrant Subsidiary.

The health care trend rate assumptions as of January 1 of each year used for OPEB plans measurement purposes are shown below:

Health Care Trend Rates	2014		2013
Initial	6.50	%	6.75	%
Ultimate	5.00	%	5.00	%
Year Ultimate Reached	2020		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the OPEB health care plans.  A 1% change in assumed health care cost trend rates would have the following effects:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Effect on Total Service and Interest Cost Components of Net Periodic Postretirement Health Care Benefit Cost:
1% Increase	$	902		$	343		$	308		$	158		$	179
1% Decrease	(691		)	(264		)	(237		)	(121		)	(138		)
Effect on the Health Care Component of the Accumulated Postretirement Benefit Obligation:
1% Increase	$	17,260		$	7,117		$	7,251		$	3,377		$	3,742
1% Decrease	(13,614		)	(5,630		)	(5,736		)	(2,671		)	(2,960		)

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets.  The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits.  The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment.  Management monitors the plans to control security diversification and ensure compliance with the investment policy.  As of December 31, 2014, the assets were invested in compliance with all investment limits.  See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status as of December 31, 2014 and 2013

The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status as of December 31.  The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

APCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	663,231		$	718,460		$	279,884		$	348,990
Service Cost	7,036			6,171			1,448			2,566
Interest Cost	29,624			27,662			12,788			13,454
Actuarial (Gain) Loss	41,671			(45,619		)	(8,975		)	(66,056		)
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Participant Contributions	—			—			7,196			6,600
Medicare Subsidy	—			—			1,391			1,550
Benefit Obligation as of December 31,	$	702,805		$	663,231		$	267,148		$	279,884
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	627,995		$	621,570		$	284,840		$	267,758
Actual Gain on Plan Assets	44,052			49,832			11,836			34,289
Company Contributions	8,999			36			3,345			3,413
Participant Contributions	—			—			7,196			6,600
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Fair Value of Plan Assets as of December 31,	$	642,289		$	627,995		$	280,633		$	284,840
Funded (Underfunded) Status as of December 31,	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

I&M	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	574,699		$	618,973		$	166,497		$	218,553
Service Cost	10,068			8,736			1,947			3,219
Interest Cost	26,293			24,100			7,638			8,221
Actuarial (Gain) Loss	38,466			(41,631		)	(4,925		)	(52,800		)
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Participant Contributions	—			—			5,168			4,745
Medicare Subsidy	—			—			1,064			1,172
Benefit Obligation as of December 31,	$	617,948		$	574,699		$	161,659		$	166,497
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	559,143		$	552,026		$	206,214		$	194,128
Actual Gain on Plan Assets	55,295			42,584			6,664			23,844
Company Contributions	8,877			12			92			110
Participant Contributions	—			—			5,168			4,745
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Fair Value of Plan Assets as of December 31,	$	591,737		$	559,143		$	202,408		$	206,214
Funded (Underfunded) Status as of December 31,	$	(26,211	)	$	(15,556	)	$	40,749		$	39,717

OPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	523,643		$	1,068,186		$	171,164		$	466,290
Transfer of OPCo Generation Benefit Obligation	—			(499,725		)	—			(250,843		)
Service Cost	5,140			5,285			1,026			2,882
Interest Cost	22,105			21,939			7,601			9,494
Actuarial (Gain) Loss	6,761			(34,373		)	(4,286		)	(44,149		)
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Participant Contributions	—			—			5,564			5,199
Medicare Subsidy	—			—			981			1,135
Benefit Obligation as of December 31,	$	526,250		$	523,643		$	164,697		$	171,164
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	501,634		$	1,015,115		$	211,994		$	366,301
Transfer of OPCo Generation Plan Assets	—			(506,076		)	—			(170,650		)
Actual Gain on Plan Assets	21,679			30,264			6,007			29,576
Company Contributions	6,547			—			—			412
Participant Contributions	—			—			5,564			5,199
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Fair Value of Plan Assets as of December 31,	$	498,461		$	501,634		$	206,212		$	211,994
Funded (Underfunded) Status as of December 31,	$	(27,789	)	$	(22,009	)	$	41,515		$	40,830

PSO	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	260,710		$	279,685		$	77,779		$	99,680
Service Cost	5,207			5,562			839			1,372
Interest Cost	12,057			10,993			3,574			3,793
Actuarial (Gain) Loss	25,708			(15,381		)	(952		)	(22,070		)
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Participant Contributions	—			—			2,304			2,229
Medicare Subsidy	—			—			467			516
Benefit Obligation as of December 31,	$	285,405		$	260,710		$	76,706		$	77,779
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	264,597		$	264,823		$	96,333		$	90,521
Actual Gain on Plan Assets	24,607			19,892			4,709			11,324
Company Contributions	4,555			31			—			—
Participant Contributions	—			—			2,304			2,229
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Fair Value of Plan Assets as of December 31,	$	275,482		$	264,597		$	96,041		$	96,333
Funded (Underfunded) Status as of December 31,	$	(9,923	)	$	3,887		$	19,335		$	18,554

SWEPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	270,564		$	285,560		$	86,997		$	109,948
Service Cost	6,618			7,011			1,012			1,693
Interest Cost	12,651			11,454			3,992			4,301
Actuarial (Gain) Loss	27,511			(12,818		)	(2,296		)	(23,852		)
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Participant Contributions	—			—			2,532			2,410
Medicare Subsidy	—			—			499			554
Benefit Obligation as of December 31,	$	298,166		$	270,564		$	85,005		$	86,997
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	278,946		$	279,699		$	107,750		$	99,846
Actual Gain on Plan Assets	26,482			19,823			3,881			13,551
Company Contributions	3,902			67			—			—
Participant Contributions	—			—			2,532			2,410
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Fair Value of Plan Assets as of December 31,	$	290,152		$	278,946		$	106,432		$	107,750
Funded (Underfunded) Status as of December 31,	$	(8,014	)	$	8,382		$	21,427		$	20,753

Amounts Recognized on the Registrant Subsidiaries' Balance Sheets as of December 31, 2014 and 2013

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
APCo	2014			2013			2014			2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	56,498		$	27,945
Other Current Liabilities – Accrued Short-term Benefit Liability	(39		)	(34		)	(2,884		)	(2,970		)
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(60,477		)	(35,202		)	(40,129		)	(20,019		)
Funded (Underfunded) Status	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
I&M	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	40,749	$	39,590
Other Current Liabilities – Accrued Short-term Benefit Liability	(28		)	(43		)	—		—
Deferred Credits and Other Noncurrent Liabilities – Accrued Long-term Benefit Liability	(26,183		)	(15,513		)	—		127
Funded (Underfunded) Status	$	(26,211	)	$	(15,556	)	$	40,749	$	39,717

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
OPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	41,515	$	39,496
Other Current Liabilities – Accrued Short-term Benefit Liability	(1		)	(1		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(27,788		)	(22,008		)	—		1,334
Funded (Underfunded) Status	$	(27,789	)	$	(22,009	)	$	41,515	$	40,830

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
PSO	2014			2013			2014		2013
	(in thousands)
Employee Benefits and Pension Assets – Prepaid Benefit Costs	$	—		$	5,280		$	19,335	$	17,349
Other Current Liabilities – Accrued Short-term Benefit Liability	(190		)	(107		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(9,733		)	(1,286		)	—		1,205
Funded (Underfunded) Status	$	(9,923	)	$	3,887		$	19,335	$	18,554

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
SWEPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	9,506		$	21,427	$	19,210
Other Current Liabilities – Accrued Short-term Benefit Liability	(82		)	(79		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(7,932		)	(1,045		)	—		1,543
Funded (Underfunded) Status	$	(8,014	)	$	8,382		$	21,427	$	20,753

Amounts Included in AOCI and Regulatory Assets as of December 31, 2014 and 2013

APCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	235,000	$	220,047	$	65,841		$	72,732
Prior Service Cost (Credit)	523		720		(90,626		)	(100,676		)
Recorded as
Regulatory Assets	$	232,815	$	217,937	$	(20,330	)	$	(25,473	)
Deferred Income Taxes	948		991		(1,559		)	(865		)
Net of Tax AOCI	1,760		1,839		(2,896		)	(1,606		)

I&M	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	137,945	$	138,367	$	54,444		$	54,949
Prior Service Cost (Credit)	510		705		(85,117		)	(94,538		)
Recorded as
Regulatory Assets	$	134,121	$	134,560	$	(26,264	)	$	(34,428	)
Deferred Income Taxes	1,517		1,579		(1,543		)	(1,807		)
Net of Tax AOCI	2,817		2,933		(2,866		)	(3,354		)

OPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	226,755	$	227,668	$	30,651		$	29,804
Prior Service Cost (Credit)	393		550		(62,377		)	(69,300		)
Recorded as
Regulatory Assets	$	227,148	$	228,218	$	(31,726	)	$	(39,496	)

PSO	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	102,641	$	93,688	$	25,242		$	25,712
Prior Service Cost (Credit)	536		832		(38,771		)	(43,061		)
Recorded as
Regulatory Assets	$	103,177	$	94,520	$	(13,529	)	$	(17,349	)

SWEPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	104,903	$	95,492	$	32,377		$	32,772
Prior Service Cost (Credit)	655		1,004		(46,826		)	(51,982		)
Recorded as
Regulatory Assets	$	105,558	$	96,496	$	(8,959	)	$	(11,836	)
Deferred Income Taxes	—		—		(1,921		)	(2,580		)
Net of Tax AOCI	—		—		(3,569		)	(4,794		)

Components of the change in amounts included in AOCI and Regulatory Assets by Registrant Subsidiary during the years ended December 31, 2014 and 2013 are as follows:

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Loss During the Year	$	31,546		$	14,163		$	11,509		$	15,706		$	16,457
Amortization of Actuarial Loss	(16,593		)	(14,585		)	(12,422		)	(6,753		)	(7,046		)
Amortization of Prior Service Cost	(197		)	(195		)	(157		)	(296		)	(349		)
Change for the Year Ended December 31, 2014	$	14,756		$	(617	)	$	(1,070	)	$	8,657		$	9,062

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(58,411	)	$	(51,388	)	$	(253,392	)	$	(19,599	)	$	(16,133	)
Amortization of Actuarial Loss	(25,025		)	(21,688		)	(19,833		)	(9,845		)	(10,214		)
Amortization of Prior Service Cost	(198		)	(195		)	(157		)	(297		)	(349		)
Change for the Year Ended December 31, 2013	$	(83,634	)	$	(73,271	)	$	(273,382	)	$	(29,741	)	$	(26,696	)

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial (Gain) Loss During the Year	$	(2,309	)	$	1,863		$	3,226		$	639		$	840
Amortization of Actuarial Loss	(4,582		)	(2,368		)	(2,379		)	(1,109		)	(1,235		)
Amortization of Prior Service Credit	10,050			9,421			6,923			4,290			5,156
Change for the Year Ended December 31, 2014	$	3,159		$	8,916		$	7,770		$	3,820		$	4,761

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(82,192	)	$	(63,460	)	$	(111,922	)	$	(27,305	)	$	(30,523	)
Amortization of Actuarial Loss	(12,249		)	(7,526		)	(8,633		)	(3,476		)	(3,928		)
Amortization of Prior Service Credit	10,050			9,421			6,962			4,289			5,156
Change for the Year Ended December 31, 2013	$	(84,391	)	$	(61,565	)	$	(113,593	)	$	(26,492	)	$	(29,295	)

Pension and Other Postretirement Benefits Plans’ Assets

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	76,107	$	—	$	—	$	—		$	76,107		11.9	%
International	64,930		—		—		—			64,930			10.1	%
Options	—		1,822		—		—			1,822			0.3	%
Real Estate Investment Trusts	7,019		—		—		—			7,019			1.1	%
Common Collective Trust – Global	—		48,751		—		—			48,751			7.6	%
Common Collective Trust – International	—		2,390		—		—			2,390			0.4	%
Subtotal – Equities	148,056		52,963		—		—			201,019			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,904		—		—			3,904			0.6	%
United States Government and Agency Securities	—		58,164		—		—			58,164			9.0	%
Corporate Debt	—		232,667		—		—			232,667			36.2	%
Foreign Debt	—		51,806		—		—			51,806			8.1	%
State and Local Government	—		1,927		—		—			1,927			0.3	%
Other – Asset Backed	—		3,766		—		—			3,766			0.6	%
Subtotal – Fixed Income	—		352,234		—		—			352,234			54.8	%
Infrastructure	—		—		1,617		—			1,617			0.3	%
Real Estate	—		—		30,487		—			30,487			4.7	%
Alternative Investments	—		—		48,985		—			48,985			7.6	%
Securities Lending	—		28,414		—		—			28,414			4.4	%
Securities Lending Collateral (a)	—		—		—		(28,641		)	(28,641		)	(4.5	)%
Cash and Cash Equivalents	—		6,888		—		—			6,888			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,286			1,286			0.2	%
Total	$	148,056	$	440,499	$	81,089	$	(27,355	)	$	642,289		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	70,116	$	—	$	—	$	—		$	70,116		11.9	%
International	59,820		—		—		—			59,820			10.1	%
Options	—		1,678		—		—			1,678			0.3	%
Real Estate Investment Trusts	6,467		—		—		—			6,467			1.1	%
Common Collective Trust – Global	—		44,914		—		—			44,914			7.6	%
Common Collective Trust – International	—		2,201		—		—			2,201			0.4	%
Subtotal – Equities	136,403		48,793		—		—			185,196			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,597		—		—			3,597			0.6	%
United States Government and Agency Securities	—		53,586		—		—			53,586			9.0	%
Corporate Debt	—		214,355		—		—			214,355			36.2	%
Foreign Debt	—		47,728		—		—			47,728			8.1	%
State and Local Government	—		1,775		—		—			1,775			0.3	%
Other – Asset Backed	—		3,470		—		—			3,470			0.6	%
Subtotal – Fixed Income	—		324,511		—		—			324,511			54.8	%
Infrastructure	—		—		1,490		—			1,490			0.3	%
Real Estate	—		—		28,088		—			28,088			4.7	%
Alternative Investments	—		—		45,130		—			45,130			7.6	%
Securities Lending	—		26,178		—		—			26,178			4.4	%
Securities Lending Collateral (a)	—		—		—		(26,386		)	(26,386		)	(4.5	)%
Cash and Cash Equivalents	—		6,345		—		—			6,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,185			1,185			0.2	%
Total	$	136,403	$	405,827	$	74,708	$	(25,201	)	$	591,737		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,064	$	—	$	—	$	—		$	59,064		11.9	%
International	50,390		—		—		—			50,390			10.1	%
Options	—		1,414		—		—			1,414			0.3	%
Real Estate Investment Trusts	5,448		—		—		—			5,448			1.1	%
Common Collective Trust – Global	—		37,834		—		—			37,834			7.6	%
Common Collective Trust – International	—		1,854		—		—			1,854			0.4	%
Subtotal – Equities	114,902		41,102		—		—			156,004			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,030		—		—			3,030			0.6	%
United States Government and Agency Securities	—		45,139		—		—			45,139			9.0	%
Corporate Debt	—		180,566		—		—			180,566			36.2	%
Foreign Debt	—		40,205		—		—			40,205			8.1	%
State and Local Government	—		1,496		—		—			1,496			0.3	%
Other – Asset Backed	—		2,923		—		—			2,923			0.6	%
Subtotal – Fixed Income	—		273,359		—		—			273,359			54.8	%
Infrastructure	—		—		1,255		—			1,255			0.3	%
Real Estate	—		—		23,660		—			23,660			4.7	%
Alternative Investments	—		—		38,016		—			38,016			7.6	%
Securities Lending	—		22,051		—		—			22,051			4.4	%
Securities Lending Collateral (a)	—		—		—		(22,227		)	(22,227		)	(4.5	)%
Cash and Cash Equivalents	—		5,345		—		—			5,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		998			998			0.2	%
Total	$	114,902	$	341,857	$	62,931	$	(21,229	)	$	498,461		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	32,642	$	—	$	—	$	—		$	32,642		11.9	%
International	27,849		—		—		—			27,849			10.1	%
Options	—		781		—		—			781			0.3	%
Real Estate Investment Trusts	3,011		—		—		—			3,011			1.1	%
Common Collective Trust - Global	—		20,910		—		—			20,910			7.6	%
Common Collective Trust – International	—		1,025		—		—			1,025			0.4	%
Subtotal – Equities	63,502		22,716		—		—			86,218			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,675		—		—			1,675			0.6	%
United States Government and Agency Securities	—		24,947		—		—			24,947			9.0	%
Corporate Debt	—		99,792		—		—			99,792			36.2	%
Foreign Debt	—		22,220		—		—			22,220			8.1	%
State and Local Government	—		827		—		—			827			0.3	%
Other – Asset Backed	—		1,615		—		—			1,615			0.6	%
Subtotal – Fixed Income	—		151,076		—		—			151,076			54.8	%
Infrastructure	—		—		693		—			693			0.3	%
Real Estate	—		—		13,076		—			13,076			4.7	%
Alternative Investments	—		—		21,010		—			21,010			7.6	%
Securities Lending	—		12,187		—		—			12,187			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,284		)	(12,284		)	(4.5	)%
Cash and Cash Equivalents	—		2,954		—		—			2,954			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		552			552			0.2	%
Total	$	63,502	$	188,933	$	34,779	$	(11,732	)	$	275,482		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	34,382	$	—	$	—	$	—		$	34,382		11.9	%
International	29,332		—		—		—			29,332			10.1	%
Options	—		823		—		—			823			0.3	%
Real Estate Investment Trusts	3,171		—		—		—			3,171			1.1	%
Common Collective Trust – Global	—		22,023		—		—			22,023			7.6	%
Common Collective Trust – International	—		1,079		—		—			1,079			0.4	%
Subtotal – Equities	66,885		23,925		—		—			90,810			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,764		—		—			1,764			0.6	%
United States Government and Agency Securities	—		26,275		—		—			26,275			9.0	%
Corporate Debt	—		105,107		—		—			105,107			36.2	%
Foreign Debt	—		23,403		—		—			23,403			8.1	%
State and Local Government	—		871		—		—			871			0.3	%
Other – Asset Backed	—		1,701		—		—			1,701			0.6	%
Subtotal – Fixed Income	—		159,121		—		—			159,121			54.8	%
Infrastructure	—		—		730		—			730			0.3	%
Real Estate	—		—		13,772		—			13,772			4.7	%
Alternative Investments	—		—		22,129		—			22,129			7.6	%
Securities Lending	—		12,836		—		—			12,836			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,938		)	(12,938		)	(4.5	)%
Cash and Cash Equivalents	—		3,111		—		—			3,111			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		581			581			0.2	%
Total	$	66,885	$	198,993	$	36,631	$	(12,357	)	$	290,152		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy by Registrant Subsidiary for pension assets:

APCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	31,757		$	43,939	$	75,696
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		2,829			3,276		6,105
Relating to Assets Sold During the Period	—		9,831			1,616		11,447
Purchases and Sales	1,617		(13,930		)	154		(12,159		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,617	$	30,487		$	48,985	$	81,089

I&M	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	28,275		$	39,121	$	67,396
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		417			3,902		4,319
Relating to Assets Sold During the Period	—		1,448			1,924		3,372
Purchases and Sales	1,490		(2,052		)	183		(379		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,490	$	28,088		$	45,130	$	74,708

OPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	25,367		$	35,098	$	60,465
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		3,802			1,895		5,697
Relating to Assets Sold During the Period	—		13,219			934		14,153
Purchases and Sales	1,255		(18,728		)	89		(17,384		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,255	$	23,660		$	38,016	$	62,931

PSO	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	13,380		$	18,513	$	31,893
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		683			1,622		2,305
Relating to Assets Sold During the Period	—		2,371			799		3,170
Purchases and Sales	693		(3,358		)	76		(2,589		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	693	$	13,076		$	21,010	$	34,779

SWEPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	14,106		$	19,517	$	33,623
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		745			1,696		2,441
Relating to Assets Sold During the Period	—		2,590			836		3,426
Purchases and Sales	730		(3,669		)	80		(2,859		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	730	$	13,772		$	22,129	$	36,631

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	77,221	$	—	$	—	$	—	$	77,221	27.5	%
International	93,871		—		—		—		93,871		33.5	%
Options	—		2,712		—		—		2,712		1.0	%
Common Collective Trust – Global	—		4,905		—		—		4,905		1.8	%
Subtotal – Equities	171,092		7,617		—		—		178,709		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		17,188		—		—		17,188		6.1	%
United States Government and Agency Securities	—		11,775		—		—		11,775		4.2	%
Corporate Debt	—		20,787		—		—		20,787		7.4	%
Foreign Debt	—		3,532		—		—		3,532		1.3	%
State and Local Government	—		975		—		—		975		0.3	%
Other – Asset Backed	—		820		—		—		820		0.3	%
Subtotal – Fixed Income	—		55,077		—		—		55,077		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,709		—		—		1,709		0.6	%
United States Bonds	—		35,131		—		—		35,131		12.5	%
Subtotal – Trust Owned Life Insurance	—		36,840		—		—		36,840		13.1	%
Cash and Cash Equivalents	7,751		1,586		—		—		9,337		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		670		670		0.2	%
Total	$	178,843	$	101,120	$	—	$	670	$	280,633	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	55,695	$	—	$	—	$	—	$	55,695	27.5	%
International	67,705		—		—		—		67,705		33.5	%
Options	—		1,956		—		—		1,956		1.0	%
Common Collective Trust – Global	—		3,538		—		—		3,538		1.8	%
Subtotal – Equities	123,400		5,494		—		—		128,894		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,397		—		—		12,397		6.1	%
United States Government and Agency Securities	—		8,493		—		—		8,493		4.2	%
Corporate Debt	—		14,993		—		—		14,993		7.4	%
Foreign Debt	—		2,547		—		—		2,547		1.3	%
State and Local Government	—		704		—		—		704		0.3	%
Other – Asset Backed	—		592		—		—		592		0.3	%
Subtotal – Fixed Income	—		39,726		—		—		39,726		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,232		—		—		1,232		0.6	%
United States Bonds	—		25,339		—		—		25,339		12.5	%
Subtotal – Trust Owned Life Insurance	—		26,571		—		—		26,571		13.1	%
Cash and Cash Equivalents	5,590		1,144		—		—		6,734		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		483		483		0.2	%
Total	$	128,990	$	72,935	$	—	$	483	$	202,408	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	56,743	$	—	$	—	$	—	$	56,743	27.5	%
International	68,977		—		—		—		68,977		33.5	%
Options	—		1,993		—		—		1,993		1.0	%
Common Collective Trust – Global	—		3,604		—		—		3,604		1.8	%
Subtotal – Equities	125,720		5,597		—		—		131,317		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,630		—		—		12,630		6.1	%
United States Government and Agency Securities	—		8,653		—		—		8,653		4.2	%
Corporate Debt	—		15,274		—		—		15,274		7.4	%
Foreign Debt	—		2,595		—		—		2,595		1.3	%
State and Local Government	—		717		—		—		717		0.3	%
Other – Asset Backed	—		603		—		—		603		0.3	%
Subtotal – Fixed Income	—		40,472		—		—		40,472		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,256		—		—		1,256		0.6	%
United States Bonds	—		25,815		—		—		25,815		12.5	%
Subtotal – Trust Owned Life Insurance	—		27,071		—		—		27,071		13.1	%
Cash and Cash Equivalents	5,695		1,165		—		—		6,860		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		492		492		0.2	%
Total	$	131,415	$	74,305	$	—	$	492	$	206,212	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,425	$	—	$	—	$	—	$	26,425	27.5	%
International	32,126		—		—		—		32,126		33.5	%
Options	—		928		—		—		928		1.0	%
Common Collective Trust – Global	—		1,679		—		—		1,679		1.8	%
Subtotal – Equities	58,551		2,607		—		—		61,158		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		5,882		—		—		5,882		6.1	%
United States Government and Agency Securities	—		4,030		—		—		4,030		4.2	%
Corporate Debt	—		7,114		—		—		7,114		7.4	%
Foreign Debt	—		1,209		—		—		1,209		1.3	%
State and Local Government	—		334		—		—		334		0.3	%
Other – Asset Backed	—		281		—		—		281		0.3	%
Subtotal – Fixed Income	—		18,850		—		—		18,850		19.6	%
Trust Owned Life Insurance:
International Equities	—		585		—		—		585		0.6	%
United States Bonds	—		12,023		—		—		12,023		12.5	%
Subtotal – Trust Owned Life Insurance	—		12,608		—		—		12,608		13.1	%
Cash and Cash Equivalents	2,653		543		—		—		3,196		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		229		229		0.2	%
Total	$	61,204	$	34,608	$	—	$	229	$	96,041	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	29,286	$	—	$	—	$	—	$	29,286	27.5	%
International	35,601		—		—		—		35,601		33.5	%
Options	—		1,029		—		—		1,029		1.0	%
Common Collective Trust – Global	—		1,860		—		—		1,860		1.8	%
Subtotal – Equities	64,887		2,889		—		—		67,776		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		6,519		—		—		6,519		6.1	%
United States Government and Agency Securities	—		4,466		—		—		4,466		4.2	%
Corporate Debt	—		7,884		—		—		7,884		7.4	%
Foreign Debt	—		1,339		—		—		1,339		1.3	%
State and Local Government	—		370		—		—		370		0.3	%
Other – Asset Backed	—		311		—		—		311		0.3	%
Subtotal – Fixed Income	—		20,889		—		—		20,889		19.6	%
Trust Owned Life Insurance:
International Equities	—		648		—		—		648		0.6	%
United States Bonds	—		13,324		—		—		13,324		12.5	%
Subtotal – Trust Owned Life Insurance	—		13,972		—		—		13,972		13.1	%
Cash and Cash Equivalents	2,940		601		—		—		3,541		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		254		254		0.2	%
Total	$	67,827	$	38,351	$	—	$	254	$	106,432	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	145,515	$	—	$	—	$	—		$	145,515		23.2	%
International	68,591		—		—		—			68,591			10.9	%
Real Estate Investment Trusts	7,718		—		—		—			7,718			1.2	%
Common Collective Trust – International	—		1,302		—		—			1,302			0.2	%
Subtotal – Equities	221,824		1,302		—		—			223,126			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,456		—		—			3,456			0.5	%
United States Government and Agency Securities	—		51,556		—		—			51,556			8.2	%
Corporate Debt	—		213,280		—		—			213,280			34.0	%
Foreign Debt	—		45,818		—		—			45,818			7.3	%
State and Local Government	—		3,730		—		—			3,730			0.6	%
Other – Asset Backed	—		4,437		—		—			4,437			0.7	%
Subtotal – Fixed Income	—		322,277		—		—			322,277			51.3	%
Real Estate	—		—		31,757		—			31,757			5.0	%
Alternative Investments	—		—		43,939		—			43,939			7.0	%
Securities Lending	—		4,689		—		—			4,689			0.8	%
Securities Lending Collateral (a)	—		—		—		(6,024		)	(6,024		)	(0.9	)%
Cash and Cash Equivalents	—		6,476		—		—			6,476			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,755			1,755			0.3	%
Total	$	221,824	$	334,744	$	75,696	$	(4,269	)	$	627,995		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	129,561	$	—	$	—	$	—		$	129,561		23.2	%
International	61,071		—		—		—			61,071			10.9	%
Real Estate Investment Trusts	6,872		—		—		—			6,872			1.2	%
Common Collective Trust – International	—		1,159		—		—			1,159			0.2	%
Subtotal – Equities	197,504		1,159		—		—			198,663			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,077		—		—			3,077			0.5	%
United States Government and Agency Securities	—		45,904		—		—			45,904			8.2	%
Corporate Debt	—		189,896		—		—			189,896			34.0	%
Foreign Debt	—		40,794		—		—			40,794			7.3	%
State and Local Government	—		3,321		—		—			3,321			0.6	%
Other – Asset Backed	—		3,951		—		—			3,951			0.7	%
Subtotal – Fixed Income	—		286,943		—		—			286,943			51.3	%
Real Estate	—		—		28,275		—			28,275			5.0	%
Alternative Investments	—		—		39,121		—			39,121			7.0	%
Securities Lending	—		4,175		—		—			4,175			0.8	%
Securities Lending Collateral (a)	—		—		—		(5,363		)	(5,363		)	(0.9	)%
Cash and Cash Equivalents	—		5,766		—		—			5,766			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,563			1,563			0.3	%
Total	$	197,504	$	298,043	$	67,396	$	(3,800	)	$	559,143		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	116,233	$	—	$	—	$	—		$	116,233		23.2	%
International	54,790		—		—		—			54,790			10.9	%
Real Estate Investment Trusts	6,165		—		—		—			6,165			1.2	%
Common Collective Trust – International	—		1,040		—		—			1,040			0.2	%
Subtotal – Equities	177,188		1,040		—		—			178,228			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		2,761		—		—			2,761			0.5	%
United States Government and Agency Securities	—		41,183		—		—			41,183			8.2	%
Corporate Debt	—		170,365		—		—			170,365			34.0	%
Foreign Debt	—		36,599		—		—			36,599			7.3	%
State and Local Government	—		2,980		—		—			2,980			0.6	%
Other – Asset Backed	—		3,545		—		—			3,545			0.7	%
Subtotal – Fixed Income	—		257,433		—		—			257,433			51.3	%
Real Estate	—		—		25,367		—			25,367			5.0	%
Alternative Investments	—		—		35,098		—			35,098			7.0	%
Securities Lending	—		3,745		—		—			3,745			0.8	%
Securities Lending Collateral (a)	—		—		—		(4,812		)	(4,812		)	(0.9	)%
Cash and Cash Equivalents	—		5,173		—		—			5,173			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,402			1,402			0.3	%
Total	$	177,188	$	267,391	$	60,465	$	(3,410	)	$	501,634		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	61,309	$	—	$	—	$	—		$	61,309		23.2	%
International	28,900		—		—		—			28,900			10.9	%
Real Estate Investment Trusts	3,252		—		—		—			3,252			1.2	%
Common Collective Trust – International	—		548		—		—			548			0.2	%
Subtotal – Equities	93,461		548		—		—			94,009			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,456		—		—			1,456			0.5	%
United States Government and Agency Securities	—		21,723		—		—			21,723			8.2	%
Corporate Debt	—		89,863		—		—			89,863			34.0	%
Foreign Debt	—		19,305		—		—			19,305			7.3	%
State and Local Government	—		1,572		—		—			1,572			0.6	%
Other – Asset Backed	—		1,870		—		—			1,870			0.7	%
Subtotal – Fixed Income	—		135,789		—		—			135,789			51.3	%
Real Estate	—		—		13,380		—			13,380			5.0	%
Alternative Investments	—		—		18,513		—			18,513			7.0	%
Securities Lending	—		1,976		—		—			1,976			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,538		)	(2,538		)	(0.9	)%
Cash and Cash Equivalents	—		2,729		—		—			2,729			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		739			739			0.3	%
Total	$	93,461	$	141,042	$	31,893	$	(1,799	)	$	264,597		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	64,634	$	—	$	—	$	—		$	64,634		23.2	%
International	30,467		—		—		—			30,467			10.9	%
Real Estate Investment Trusts	3,428		—		—		—			3,428			1.2	%
Common Collective Trust – International	—		578		—		—			578			0.2	%
Subtotal – Equities	98,529		578		—		—			99,107			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,535		—		—			1,535			0.5	%
United States Government and Agency Securities	—		22,901		—		—			22,901			8.2	%
Corporate Debt	—		94,736		—		—			94,736			34.0	%
Foreign Debt	—		20,352		—		—			20,352			7.3	%
State and Local Government	—		1,657		—		—			1,657			0.6	%
Other – Asset Backed	—		1,971		—		—			1,971			0.7	%
Subtotal – Fixed Income	—		143,152		—		—			143,152			51.3	%
Real Estate	—		—		14,106		—			14,106			5.0	%
Alternative Investments	—		—		19,517		—			19,517			7.0	%
Securities Lending	—		2,083		—		—			2,083			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,676		)	(2,676		)	(0.9	)%
Cash and Cash Equivalents	—		2,877		—		—			2,877			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		780			780			0.3	%
Total	$	98,529	$	148,690	$	33,623	$	(1,896	)	$	278,946		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for pension assets by Registrant Subsidiary:

APCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	29,063		$	25,888	$	54,951
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,861			1,932		5,793
Relating to Assets Sold During the Period	—			1,949		1,949
Purchases and Sales	(1,167		)	14,170		13,003
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	31,757		$	43,939	$	75,696

I&M	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	25,811		$	22,992	$	48,803
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,531			1,727		5,258
Relating to Assets Sold During the Period	—			1,741		1,741
Purchases and Sales	(1,067		)	12,661		11,594
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	28,275		$	39,121	$	67,396

OPCo	Real Estate			Alternative Investments			Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	47,464		$	42,279		$	89,743
Transfer of OPCo Generation Plan Assets	(26,218		)	(36,275		)	(62,493		)
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	5,907			3,113			9,020
Relating to Assets Sold During the Period	—			3,142			3,142
Purchases and Sales	(1,786		)	22,839			21,053
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Balance as of December 31, 2013	$	25,367		$	35,098		$	60,465

PSO	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	12,382		$	11,030	$	23,412
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,430			801		2,231
Relating to Assets Sold During the Period	—			808		808
Purchases and Sales	(432		)	5,874		5,442
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	13,380		$	18,513	$	31,893

SWEPCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	13,078		$	11,649	$	24,727
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,474			841		2,315
Relating to Assets Sold During the Period	—			850		850
Purchases and Sales	(446		)	6,177		5,731
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	14,106		$	19,517	$	33,623

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	79,369	$	—	$	—	$	—	$	79,369	27.9	%
International	103,188		—		—		—		103,188		36.2	%
Common Collective Trust – Global	—		2,463		—		—		2,463		0.9	%
Subtotal – Equities	182,557		2,463		—		—		185,020		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		14,737		—		—		14,737		5.2	%
United States Government and Agency Securities	—		9,476		—		—		9,476		3.3	%
Corporate Debt	—		18,458		—		—		18,458		6.5	%
Foreign Debt	—		3,605		—		—		3,605		1.2	%
State and Local Government	—		776		—		—		776		0.3	%
Other – Asset Backed	—		1,362		—		—		1,362		0.5	%
Subtotal – Fixed Income	—		48,414		—		—		48,414		17.0	%
Trust Owned Life Insurance:
International Equities	—		2,219		—		—		2,219		0.8	%
United States Bonds	—		35,470		—		—		35,470		12.4	%
Subtotal – Trust Owned Life Insurance	—		37,689		—		—		37,689		13.2	%
Cash and Cash Equivalents	11,441		1,470		—		—		12,911		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		806		806		0.3	%
Total	$	193,998	$	90,036	$	—	$	806	$	284,840	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	57,460	$	—	$	—	$	—	$	57,460	27.9	%
International	74,705		—		—		—		74,705		36.2	%
Common Collective Trust – Global	—		1,783		—		—		1,783		0.9	%
Subtotal – Equities	132,165		1,783		—		—		133,948		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,669		—		—		10,669		5.2	%
United States Government and Agency Securities	—		6,860		—		—		6,860		3.3	%
Corporate Debt	—		13,363		—		—		13,363		6.5	%
Foreign Debt	—		2,610		—		—		2,610		1.2	%
State and Local Government	—		562		—		—		562		0.3	%
Other – Asset Backed	—		986		—		—		986		0.5	%
Subtotal – Fixed Income	—		35,050		—		—		35,050		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,607		—		—		1,607		0.8	%
United States Bonds	—		25,679		—		—		25,679		12.4	%
Subtotal – Trust Owned Life Insurance	—		27,286		—		—		27,286		13.2	%
Cash and Cash Equivalents	8,283		1,064		—		—		9,347		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		583		583		0.3	%
Total	$	140,448	$	65,183	$	—	$	583	$	206,214	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,069	$	—	$	—	$	—	$	59,069	27.9	%
International	76,799		—		—		—		76,799		36.2	%
Common Collective Trust – Global	—		1,833		—		—		1,833		0.9	%
Subtotal – Equities	135,868		1,833		—		—		137,701		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,968		—		—		10,968		5.2	%
United States Government and Agency Securities	—		7,053		—		—		7,053		3.3	%
Corporate Debt	—		13,738		—		—		13,738		6.5	%
Foreign Debt	—		2,683		—		—		2,683		1.2	%
State and Local Government	—		577		—		—		577		0.3	%
Other – Asset Backed	—		1,014		—		—		1,014		0.5	%
Subtotal – Fixed Income	—		36,033		—		—		36,033		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,652		—		—		1,652		0.8	%
United States Bonds	—		26,399		—		—		26,399		12.4	%
Subtotal – Trust Owned Life Insurance	—		28,051		—		—		28,051		13.2	%
Cash and Cash Equivalents	8,515		1,094		—		—		9,609		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		600		600		0.3	%
Total	$	144,383	$	67,011	$	—	$	600	$	211,994	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,842	$	—	$	—	$	—	$	26,842	27.9	%
International	34,898		—		—		—		34,898		36.2	%
Common Collective Trust – Global	—		833		—		—		833		0.9	%
Subtotal – Equities	61,740		833		—		—		62,573		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		4,984		—		—		4,984		5.2	%
United States Government and Agency Securities	—		3,205		—		—		3,205		3.3	%
Corporate Debt	—		6,243		—		—		6,243		6.5	%
Foreign Debt	—		1,219		—		—		1,219		1.2	%
State and Local Government	—		262		—		—		262		0.3	%
Other – Asset Backed	—		461		—		—		461		0.5	%
Subtotal – Fixed Income	—		16,374		—		—		16,374		17.0	%
Trust Owned Life Insurance:
International Equities	—		751		—		—		751		0.8	%
United States Bonds	—		11,996		—		—		11,996		12.4	%
Subtotal – Trust Owned Life Insurance	—		12,747		—		—		12,747		13.2	%
Cash and Cash Equivalents	3,869		497		—		—		4,366		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		273		273		0.3	%
Total	$	65,609	$	30,451	$	—	$	273	$	96,333	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	30,022	$	—	$	—	$	—	$	30,022	27.9	%
International	39,034		—		—		—		39,034		36.2	%
Common Collective Trust – Global	—		932		—		—		932		0.9	%
Subtotal – Equities	69,056		932		—		—		69,988		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		5,575		—		—		5,575		5.2	%
United States Government and Agency Securities	—		3,585		—		—		3,585		3.3	%
Corporate Debt	—		6,982		—		—		6,982		6.5	%
Foreign Debt	—		1,364		—		—		1,364		1.2	%
State and Local Government	—		294		—		—		294		0.3	%
Other – Asset Backed	—		515		—		—		515		0.5	%
Subtotal – Fixed Income	—		18,315		—		—		18,315		17.0	%
Trust Owned Life Insurance:
International Equities	—		840		—		—		840		0.8	%
United States Bonds	—		13,418		—		—		13,418		12.4	%
Subtotal – Trust Owned Life Insurance	—		14,258		—		—		14,258		13.2	%
Cash and Cash Equivalents	4,328		556		—		—		4,884		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		305		305		0.3	%
Total	$	73,384	$	34,061	$	—	$	305	$	107,750	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Determination of Pension Expense

The determination of pension expense or income is based on a market-related valuation of assets which reduces year-to-year volatility.  This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur.  Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

The accumulated benefit obligation for the pension plans is as follows:

Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	688,632	$	598,190	$	512,467	$	270,059	$	281,210
Nonqualified Pension Plans	464		470		69		2,750		1,749
Total as of December 31, 2014	$	689,096	$	598,660	$	512,536	$	272,809	$	282,959
Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	653,968	$	560,443	$	512,798	$	248,472	$	256,083
Nonqualified Pension Plans	200		326		6		1,387		1,115
Total as of December 31, 2013	$	654,168	$	560,769	$	512,804	$	249,859	$	257,198

For the underfunded pension plans that had an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of these plans as of December 31, 2014 and 2013 were as follows:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	702,805		$	617,948		$	526,250		$	2,770		$	1,790
Accumulated Benefit Obligation	$	689,096		$	598,660		$	512,536		$	2,750		$	1,749
Fair Value of Plan Assets	642,289			591,737			498,461			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2014	$	(46,807	)	$	(6,923	)	$	(14,075	)	$	(2,750	)	$	(1,749	)
	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	663,231		$	574,699		$	523,643		$	1,394		$	1,124
Accumulated Benefit Obligation	$	654,168		$	560,769		$	512,804		$	1,387		$	1,115
Fair Value of Plan Assets	627,995			559,143			501,634			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2013	$	(26,173	)	$	(1,626	)	$	(11,170	)	$	(1,387	)	$	(1,115	)

Estimated Future Benefit Payments and Contributions

The estimated pension benefit payments and contributions to the trust are at least the minimum amount required by the Employee Retirement Income Security Act plus payment of unfunded nonqualified benefits.  For the qualified pension plan, additional discretionary contributions may also be made to maintain the funded status of the plan.   For OPEB plans, expected payments include the payment of unfunded benefits.  The following table provides the estimated contributions and payments by Registrant Subsidiary for 2015:

Company	Pension Plans		Other Postretirement Benefit Plans
	(in thousands)
APCo	$	11,631	$	2,884
I&M	12,492		—
OPCo	7,847		—
PSO	6,656		—
SWEPCo	7,840		—

The tables below reflect the total benefits expected to be paid from the plan or from the Registrant Subsidiaries' assets.  The payments include the participants’ contributions to the plan for their share of the cost.  Effective for employees hired after December 2013, retiree medical coverage will not be provided.  Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results.  The estimated payments for the pension benefits and OPEB are as follows:

Pension Plans	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	42,859	$	33,114	$	36,277	$	18,950	$	18,872
2016	43,091		33,813		36,174		19,626		18,747
2017	43,484		35,748		35,571		20,175		20,407
2018	45,122		36,948		35,822		21,118		21,019
2019	45,488		38,727		36,179		21,732		22,059
Years 2020 to 2024, in Total	236,107		209,813		176,022		109,800		118,909

Other Postretirement Benefit Plans: Benefit Payments	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	24,828	$	15,088	$	16,379	$	6,989	$	7,401
2016	24,603		15,363		16,289		7,067		7,504
2017	24,468		15,484		16,088		7,074		7,674
2018	24,820		15,637		16,122		7,132		7,840
2019	24,290		15,804		16,079		7,278		7,885
Years 2020 to 2024, in Total	121,401		84,026		80,066		38,852		43,503

Other Postretirement Benefit Plans: Medicare Subsidy Receipts	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	232	$	—	$	—	$	—	$	—
2016	236		—		—		—		—
2017	234		—		—		—		—
2018	231		—		—		—		—
2019	230		—		—		—		—
Years 2020 to 2024, in Total	1,080		—		—		—		—

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (credit) by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

APCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	7,036		$	6,171		$	7,565		$	1,448		$	2,566		$	5,387
Interest Cost	29,624			27,662			30,211			12,788			13,454			18,462
Expected Return on Plan Assets	(33,927		)	(37,041		)	(41,944		)	(18,533		)	(18,147		)	(16,753		)
Amortization of Transition Obligation	—			—			—			—			—			780
Amortization of Prior Service Cost (Credit)	197			198			475			(10,050		)	(10,050		)	(2,862		)
Amortization of Net Actuarial Loss	16,593			25,025			20,339			4,582			12,249			10,526
Net Periodic Benefit Cost (Credit)	19,523			22,015			16,646			(9,765		)	72			15,540
Capitalized Portion	(6,819		)	(7,529		)	(6,525		)	3,411			(25		)	(6,092		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	12,704		$	14,486		$	10,121		$	(6,354	)	$	47		$	9,448

I&M	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	10,068		$	8,736		$	9,908		$	1,947		$	3,219		$	6,621
Interest Cost	26,293			24,100			26,245			7,638			8,221			12,785
Expected Return on Plan Assets	(30,993		)	(32,826		)	(37,566		)	(13,454		)	(13,183		)	(12,847		)
Amortization of Transition Obligation	—			—			—			—			—			132
Amortization of Prior Service Cost (Credit)	195			195			407			(9,421		)	(9,421		)	(2,383		)
Amortization of Net Actuarial Loss	14,585			21,688			17,569			2,368			7,526			7,050
Net Periodic Benefit Cost (Credit)	20,148			21,893			16,563			(10,922		)	(3,638		)	11,358
Capitalized Portion	(4,638		)	(4,576		)	(3,114		)	2,514			760			(2,135		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	15,510		$	17,317		$	13,449		$	(8,408	)	$	(2,878	)	$	9,223

OPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,140		$	5,285		$	11,003		$	1,026		$	2,882		$	8,748
Interest Cost	22,105			21,939			45,194			7,601			9,494			24,189
Expected Return on Plan Assets	(26,427		)	(29,919		)	(68,401		)	(13,519		)	(13,468		)	(22,555		)
Amortization of Transition Obligation	—			—			—			—			—			104
Amortization of Prior Service Cost (Credit)	157			157			743			(6,923		)	(6,962		)	(3,873		)
Amortization of Net Actuarial Loss	12,422			19,833			30,439			2,379			8,633			13,669
Net Periodic Benefit Cost (Credit)	13,397			17,295			18,978			(9,436		)	579			20,282
Capitalized Portion	(5,479		)	(6,192		)	(7,060		)	3,859			(207		)	(7,545		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,918		$	11,103		$	11,918		$	(5,577	)	$	372		$	12,737

PSO	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,207		$	5,562		$	5,951		$	839		$	1,372		$	2,836
Interest Cost	12,057			10,993			12,301			3,574			3,793			5,797
Expected Return on Plan Assets	(14,604		)	(15,675		)	(18,015		)	(6,300		)	(6,089		)	(5,922		)
Amortization of Prior Service Cost (Credit)	296			297			(948		)	(4,290		)	(4,289		)	(1,079		)
Amortization of Net Actuarial Loss	6,753			9,845			8,206			1,109			3,476			3,189
Net Periodic Benefit Cost (Credit)	9,709			11,022			7,495			(5,068		)	(1,737		)	4,821
Capitalized Portion	(3,320		)	(3,384		)	(2,533		)	1,733			533			(1,629		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	6,389		$	7,638		$	4,962		$	(3,335	)	$	(1,204	)	$	3,192

SWEPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	6,618		$	7,011		$	7,099		$	1,012		$	1,693		$	3,324
Interest Cost	12,651			11,454			12,537			3,992			4,301			6,673
Expected Return on Plan Assets	(15,427		)	(16,509		)	(18,866		)	(7,016		)	(6,881		)	(6,795		)
Amortization of Prior Service Cost (Credit)	349			349			(793		)	(5,156		)	(5,156		)	(933		)
Amortization of Net Actuarial Loss	7,046			10,214			8,330			1,235			3,928			3,659
Net Periodic Benefit Cost (Credit)	11,237			12,519			8,307			(5,933		)	(2,115		)	5,928
Capitalized Portion	(3,391		)	(3,518		)	(2,924		)	1,791			594			(2,087		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,846		$	9,001		$	5,383		$	(4,142	)	$	(1,521	)	$	3,841

Estimated amounts expected to be amortized to net periodic benefit costs (credits) and the impact on each Registrant Subsidiaries’ balance sheet during 2015 are shown in the following tables:

	APCo			I&M			OPCo			PSO			SWEPCo
Pension Plans – Components	(in thousands)
Net Actuarial Loss	$	14,457		$	12,713		$	10,823		$	5,891		$	6,146
Prior Service Cost	180			181			140			252			308
Total Estimated 2015 Amortization	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
Pension Plans – Expected to be Recorded as
Regulatory Asset	$	14,560		$	12,114		$	10,963		$	6,143		$	6,454
Deferred Income Taxes	27			273			—			—			—
Net of Tax AOCI	50			507			—			—			—
Total	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
	APCo			I&M			OPCo			PSO			SWEPCo
Other Postretirement Benefit Plans – Components	(in thousands)
Net Actuarial Loss	$	3,353		$	1,814		$	1,848		$	861		$	954
Prior Service Credit	(10,050		)	(9,421		)	(6,922		)	(4,290		)	(5,156		)
Total Estimated 2015 Amortization	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)
Other Postretirement Benefit Plans – Expected to be Recorded as
Regulatory Asset	$	(3,693	)	$	(6,934	)	$	(5,074	)	$	(3,429	)	$	(2,687	)
Deferred Income Taxes	(1,051		)	(236		)	—			—			(530		)
Net of Tax AOCI	(1,953		)	(437		)	—			—			(985		)
Total	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)

American Electric Power System Retirement Savings Plan

The Registrant Subsidiaries participate in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees who are not covered by a retirement savings plan of the United Mine Workers of America (UMWA).  This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for company matching contributions.  The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions.

The following table provides the cost for matching contributions to the retirement savings plans by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Company	2014		2013		2012
	(in thousands)
APCo	$	7,280	$	7,366	$	7,579
I&M	10,461		10,010		9,706
OPCo	5,207		6,502		10,798
PSO	4,026		3,784		3,732
SWEPCo	5,272		4,970		4,890

UMWA Benefits

APCo provides UMWA pension, health and welfare benefits for certain unionized mining retirees and their survivors who meet eligibility requirements.  UMWA trustees make final interpretive determinations with regard to all benefits.  The pension benefits are administered by UMWA trustees.  APCo administers the health and welfare benefits and pays them from its general assets.

The UMWA pension benefits are administered through a multiemployer plan that is different from single-employer plans as an employer’s contributions may be used to provide benefits to employees of other participating employers.  Required contributions not made by an employer may result in other employers bearing the unfunded plan obligations, while a withdrawing employer may be subject to a withdrawal liability.  UMWA pension benefits are provided through the United Mine Workers of America 1974 Pension Plan (Employer Identification Number: 52-1050282, Plan Number 002), which under the Pension Protection Act of 2006 (PPA) was in Critical Status for the plan year ending June 30, 2014 and in Seriously Endangered Status for the plan year ending June 30, 2013, without utilization of extended amortization provisions.  The Plan adopted a funding improvement plan in May 2012, as required under the PPA.

Contributions to the UMWA pension plan in 2014, 2013 and 2012 were immaterial and represent less than 5% of the total contributions in the plan’s latest annual report for the years ended June 30, 2014, 2013 and 2012.  UMWA pension contributions included a surcharge of 5% beginning December 2014 and are scheduled to include a surcharge of 10% beginning July 2015.  There are no minimum contributions for future years.

Ohio Power Co [Member]

Benefit Plans

BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Investments Held in Trust for Future Liabilities” and “Fair Value Measurements of Assets and Liabilities” sections of Note 1.

The Registrant Subsidiaries participate in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans.  Substantially all employees are covered by the qualified plan or both the qualified and a nonqualified pension plan.  The Registrant Subsidiaries also participate in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

Due to the Registrant Subsidiaries’ participation in AEP’s benefits plans, the assumptions used by the actuary and the accounting for the plans by each subsidiary are the same.  This section details the assumptions that apply to all Registrant Subsidiaries and the rate of compensation increase for each subsidiary.

The Registrant Subsidiaries recognize the funded status associated with defined benefit pension and OPEB plans in their balance sheets.  Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance.  The Registrant Subsidiaries recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of other comprehensive income, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost.  The Registrant Subsidiaries record a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that for ratemaking purposes are deferred for future recovery.  The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in an AOCI equity reduction or regulatory asset and deferred gains result in an AOCI equity addition or regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions as of December 31 of each year used in the measurement of the Registrant Subsidiaries’ benefit obligations are shown in the following tables:

	Pension Plans				Other Postretirement Benefit Plans
Assumption	2014		2013		2014		2013
Discount Rate	4.00	%	4.70	%	4.00	%	4.70	%

	Pension Plans
Assumption – Rate of Compensation Increase (a)	2014		2013
APCo	4.45	%	4.60	%
I&M	4.80	%	4.90	%
OPCo	4.80	%	5.00	%
PSO	4.80	%	4.90	%
SWEPCo	4.80	%	4.85	%

(a) Rates are for base pay only.  In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

A duration-based method is used to determine the discount rate for the plans.  A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability.  The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.  The discount rate is the same for each Registrant Subsidiary.

For 2014, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with the average increase shown in the table above.  The compensation increase rates reflect variations in each Registrant Subsidiaries' population participating in the pension plan.

Updated mortality assumptions based on mortality tables issued by the Society of Actuaries in October 2014 were used for the December 31, 2014 benefit obligation measurements. These updates resulted in approximate benefit obligation increases by Registrant Subsidiary as shown in the following table:

	Pension Plans		Other Postretirement Benefit Plans
Increase in Benefit Obligation	(in thousands)
APCo	$	17,946	$	2,271
I&M	15,117		1,644
OPCo	14,525		310
PSO	6,811		555
SWEPCo	6,445		775

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions as of January 1 of each year used in the measurement of each Registrant Subsidiaries’ benefit costs are shown in the following tables:

	Pension Plans						Other Postretirement Benefit Plans
Assumptions	2014		2013		2012		2014		2013		2012
Discount Rate	4.70	%	3.95	%	4.55	%	4.70	%	3.95	%	4.75	%
Expected Return on Plan Assets	6.00	%	6.50	%	7.25	%	6.75	%	7.00	%	7.25	%

	Pension Plans
Assumption – Rate of Compensation Increase	2014		2013		2012
APCo	4.60	%	4.70	%	4.70	%
I&M	4.90	%	5.00	%	5.00	%
OPCo	5.00	%	5.00	%	5.00	%
PSO	4.90	%	4.90	%	4.90	%
SWEPCo	4.85	%	4.75	%	4.75	%

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation and current prospects for economic growth.  The expected return on plan assets is the same for each Registrant Subsidiary.

The health care trend rate assumptions as of January 1 of each year used for OPEB plans measurement purposes are shown below:

Health Care Trend Rates	2014		2013
Initial	6.50	%	6.75	%
Ultimate	5.00	%	5.00	%
Year Ultimate Reached	2020		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the OPEB health care plans.  A 1% change in assumed health care cost trend rates would have the following effects:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Effect on Total Service and Interest Cost Components of Net Periodic Postretirement Health Care Benefit Cost:
1% Increase	$	902		$	343		$	308		$	158		$	179
1% Decrease	(691		)	(264		)	(237		)	(121		)	(138		)
Effect on the Health Care Component of the Accumulated Postretirement Benefit Obligation:
1% Increase	$	17,260		$	7,117		$	7,251		$	3,377		$	3,742
1% Decrease	(13,614		)	(5,630		)	(5,736		)	(2,671		)	(2,960		)

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets.  The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits.  The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment.  Management monitors the plans to control security diversification and ensure compliance with the investment policy.  As of December 31, 2014, the assets were invested in compliance with all investment limits.  See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status as of December 31, 2014 and 2013

The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status as of December 31.  The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

APCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	663,231		$	718,460		$	279,884		$	348,990
Service Cost	7,036			6,171			1,448			2,566
Interest Cost	29,624			27,662			12,788			13,454
Actuarial (Gain) Loss	41,671			(45,619		)	(8,975		)	(66,056		)
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Participant Contributions	—			—			7,196			6,600
Medicare Subsidy	—			—			1,391			1,550
Benefit Obligation as of December 31,	$	702,805		$	663,231		$	267,148		$	279,884
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	627,995		$	621,570		$	284,840		$	267,758
Actual Gain on Plan Assets	44,052			49,832			11,836			34,289
Company Contributions	8,999			36			3,345			3,413
Participant Contributions	—			—			7,196			6,600
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Fair Value of Plan Assets as of December 31,	$	642,289		$	627,995		$	280,633		$	284,840
Funded (Underfunded) Status as of December 31,	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

I&M	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	574,699		$	618,973		$	166,497		$	218,553
Service Cost	10,068			8,736			1,947			3,219
Interest Cost	26,293			24,100			7,638			8,221
Actuarial (Gain) Loss	38,466			(41,631		)	(4,925		)	(52,800		)
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Participant Contributions	—			—			5,168			4,745
Medicare Subsidy	—			—			1,064			1,172
Benefit Obligation as of December 31,	$	617,948		$	574,699		$	161,659		$	166,497
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	559,143		$	552,026		$	206,214		$	194,128
Actual Gain on Plan Assets	55,295			42,584			6,664			23,844
Company Contributions	8,877			12			92			110
Participant Contributions	—			—			5,168			4,745
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Fair Value of Plan Assets as of December 31,	$	591,737		$	559,143		$	202,408		$	206,214
Funded (Underfunded) Status as of December 31,	$	(26,211	)	$	(15,556	)	$	40,749		$	39,717

OPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	523,643		$	1,068,186		$	171,164		$	466,290
Transfer of OPCo Generation Benefit Obligation	—			(499,725		)	—			(250,843		)
Service Cost	5,140			5,285			1,026			2,882
Interest Cost	22,105			21,939			7,601			9,494
Actuarial (Gain) Loss	6,761			(34,373		)	(4,286		)	(44,149		)
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Participant Contributions	—			—			5,564			5,199
Medicare Subsidy	—			—			981			1,135
Benefit Obligation as of December 31,	$	526,250		$	523,643		$	164,697		$	171,164
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	501,634		$	1,015,115		$	211,994		$	366,301
Transfer of OPCo Generation Plan Assets	—			(506,076		)	—			(170,650		)
Actual Gain on Plan Assets	21,679			30,264			6,007			29,576
Company Contributions	6,547			—			—			412
Participant Contributions	—			—			5,564			5,199
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Fair Value of Plan Assets as of December 31,	$	498,461		$	501,634		$	206,212		$	211,994
Funded (Underfunded) Status as of December 31,	$	(27,789	)	$	(22,009	)	$	41,515		$	40,830

PSO	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	260,710		$	279,685		$	77,779		$	99,680
Service Cost	5,207			5,562			839			1,372
Interest Cost	12,057			10,993			3,574			3,793
Actuarial (Gain) Loss	25,708			(15,381		)	(952		)	(22,070		)
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Participant Contributions	—			—			2,304			2,229
Medicare Subsidy	—			—			467			516
Benefit Obligation as of December 31,	$	285,405		$	260,710		$	76,706		$	77,779
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	264,597		$	264,823		$	96,333		$	90,521
Actual Gain on Plan Assets	24,607			19,892			4,709			11,324
Company Contributions	4,555			31			—			—
Participant Contributions	—			—			2,304			2,229
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Fair Value of Plan Assets as of December 31,	$	275,482		$	264,597		$	96,041		$	96,333
Funded (Underfunded) Status as of December 31,	$	(9,923	)	$	3,887		$	19,335		$	18,554

SWEPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	270,564		$	285,560		$	86,997		$	109,948
Service Cost	6,618			7,011			1,012			1,693
Interest Cost	12,651			11,454			3,992			4,301
Actuarial (Gain) Loss	27,511			(12,818		)	(2,296		)	(23,852		)
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Participant Contributions	—			—			2,532			2,410
Medicare Subsidy	—			—			499			554
Benefit Obligation as of December 31,	$	298,166		$	270,564		$	85,005		$	86,997
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	278,946		$	279,699		$	107,750		$	99,846
Actual Gain on Plan Assets	26,482			19,823			3,881			13,551
Company Contributions	3,902			67			—			—
Participant Contributions	—			—			2,532			2,410
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Fair Value of Plan Assets as of December 31,	$	290,152		$	278,946		$	106,432		$	107,750
Funded (Underfunded) Status as of December 31,	$	(8,014	)	$	8,382		$	21,427		$	20,753

Amounts Recognized on the Registrant Subsidiaries' Balance Sheets as of December 31, 2014 and 2013

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
APCo	2014			2013			2014			2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	56,498		$	27,945
Other Current Liabilities – Accrued Short-term Benefit Liability	(39		)	(34		)	(2,884		)	(2,970		)
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(60,477		)	(35,202		)	(40,129		)	(20,019		)
Funded (Underfunded) Status	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
I&M	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	40,749	$	39,590
Other Current Liabilities – Accrued Short-term Benefit Liability	(28		)	(43		)	—		—
Deferred Credits and Other Noncurrent Liabilities – Accrued Long-term Benefit Liability	(26,183		)	(15,513		)	—		127
Funded (Underfunded) Status	$	(26,211	)	$	(15,556	)	$	40,749	$	39,717

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
OPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	41,515	$	39,496
Other Current Liabilities – Accrued Short-term Benefit Liability	(1		)	(1		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(27,788		)	(22,008		)	—		1,334
Funded (Underfunded) Status	$	(27,789	)	$	(22,009	)	$	41,515	$	40,830

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
PSO	2014			2013			2014		2013
	(in thousands)
Employee Benefits and Pension Assets – Prepaid Benefit Costs	$	—		$	5,280		$	19,335	$	17,349
Other Current Liabilities – Accrued Short-term Benefit Liability	(190		)	(107		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(9,733		)	(1,286		)	—		1,205
Funded (Underfunded) Status	$	(9,923	)	$	3,887		$	19,335	$	18,554

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
SWEPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	9,506		$	21,427	$	19,210
Other Current Liabilities – Accrued Short-term Benefit Liability	(82		)	(79		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(7,932		)	(1,045		)	—		1,543
Funded (Underfunded) Status	$	(8,014	)	$	8,382		$	21,427	$	20,753

Amounts Included in AOCI and Regulatory Assets as of December 31, 2014 and 2013

APCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	235,000	$	220,047	$	65,841		$	72,732
Prior Service Cost (Credit)	523		720		(90,626		)	(100,676		)
Recorded as
Regulatory Assets	$	232,815	$	217,937	$	(20,330	)	$	(25,473	)
Deferred Income Taxes	948		991		(1,559		)	(865		)
Net of Tax AOCI	1,760		1,839		(2,896		)	(1,606		)

I&M	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	137,945	$	138,367	$	54,444		$	54,949
Prior Service Cost (Credit)	510		705		(85,117		)	(94,538		)
Recorded as
Regulatory Assets	$	134,121	$	134,560	$	(26,264	)	$	(34,428	)
Deferred Income Taxes	1,517		1,579		(1,543		)	(1,807		)
Net of Tax AOCI	2,817		2,933		(2,866		)	(3,354		)

OPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	226,755	$	227,668	$	30,651		$	29,804
Prior Service Cost (Credit)	393		550		(62,377		)	(69,300		)
Recorded as
Regulatory Assets	$	227,148	$	228,218	$	(31,726	)	$	(39,496	)

PSO	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	102,641	$	93,688	$	25,242		$	25,712
Prior Service Cost (Credit)	536		832		(38,771		)	(43,061		)
Recorded as
Regulatory Assets	$	103,177	$	94,520	$	(13,529	)	$	(17,349	)

SWEPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	104,903	$	95,492	$	32,377		$	32,772
Prior Service Cost (Credit)	655		1,004		(46,826		)	(51,982		)
Recorded as
Regulatory Assets	$	105,558	$	96,496	$	(8,959	)	$	(11,836	)
Deferred Income Taxes	—		—		(1,921		)	(2,580		)
Net of Tax AOCI	—		—		(3,569		)	(4,794		)

Components of the change in amounts included in AOCI and Regulatory Assets by Registrant Subsidiary during the years ended December 31, 2014 and 2013 are as follows:

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Loss During the Year	$	31,546		$	14,163		$	11,509		$	15,706		$	16,457
Amortization of Actuarial Loss	(16,593		)	(14,585		)	(12,422		)	(6,753		)	(7,046		)
Amortization of Prior Service Cost	(197		)	(195		)	(157		)	(296		)	(349		)
Change for the Year Ended December 31, 2014	$	14,756		$	(617	)	$	(1,070	)	$	8,657		$	9,062

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(58,411	)	$	(51,388	)	$	(253,392	)	$	(19,599	)	$	(16,133	)
Amortization of Actuarial Loss	(25,025		)	(21,688		)	(19,833		)	(9,845		)	(10,214		)
Amortization of Prior Service Cost	(198		)	(195		)	(157		)	(297		)	(349		)
Change for the Year Ended December 31, 2013	$	(83,634	)	$	(73,271	)	$	(273,382	)	$	(29,741	)	$	(26,696	)

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial (Gain) Loss During the Year	$	(2,309	)	$	1,863		$	3,226		$	639		$	840
Amortization of Actuarial Loss	(4,582		)	(2,368		)	(2,379		)	(1,109		)	(1,235		)
Amortization of Prior Service Credit	10,050			9,421			6,923			4,290			5,156
Change for the Year Ended December 31, 2014	$	3,159		$	8,916		$	7,770		$	3,820		$	4,761

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(82,192	)	$	(63,460	)	$	(111,922	)	$	(27,305	)	$	(30,523	)
Amortization of Actuarial Loss	(12,249		)	(7,526		)	(8,633		)	(3,476		)	(3,928		)
Amortization of Prior Service Credit	10,050			9,421			6,962			4,289			5,156
Change for the Year Ended December 31, 2013	$	(84,391	)	$	(61,565	)	$	(113,593	)	$	(26,492	)	$	(29,295	)

Pension and Other Postretirement Benefits Plans’ Assets

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	76,107	$	—	$	—	$	—		$	76,107		11.9	%
International	64,930		—		—		—			64,930			10.1	%
Options	—		1,822		—		—			1,822			0.3	%
Real Estate Investment Trusts	7,019		—		—		—			7,019			1.1	%
Common Collective Trust – Global	—		48,751		—		—			48,751			7.6	%
Common Collective Trust – International	—		2,390		—		—			2,390			0.4	%
Subtotal – Equities	148,056		52,963		—		—			201,019			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,904		—		—			3,904			0.6	%
United States Government and Agency Securities	—		58,164		—		—			58,164			9.0	%
Corporate Debt	—		232,667		—		—			232,667			36.2	%
Foreign Debt	—		51,806		—		—			51,806			8.1	%
State and Local Government	—		1,927		—		—			1,927			0.3	%
Other – Asset Backed	—		3,766		—		—			3,766			0.6	%
Subtotal – Fixed Income	—		352,234		—		—			352,234			54.8	%
Infrastructure	—		—		1,617		—			1,617			0.3	%
Real Estate	—		—		30,487		—			30,487			4.7	%
Alternative Investments	—		—		48,985		—			48,985			7.6	%
Securities Lending	—		28,414		—		—			28,414			4.4	%
Securities Lending Collateral (a)	—		—		—		(28,641		)	(28,641		)	(4.5	)%
Cash and Cash Equivalents	—		6,888		—		—			6,888			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,286			1,286			0.2	%
Total	$	148,056	$	440,499	$	81,089	$	(27,355	)	$	642,289		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	70,116	$	—	$	—	$	—		$	70,116		11.9	%
International	59,820		—		—		—			59,820			10.1	%
Options	—		1,678		—		—			1,678			0.3	%
Real Estate Investment Trusts	6,467		—		—		—			6,467			1.1	%
Common Collective Trust – Global	—		44,914		—		—			44,914			7.6	%
Common Collective Trust – International	—		2,201		—		—			2,201			0.4	%
Subtotal – Equities	136,403		48,793		—		—			185,196			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,597		—		—			3,597			0.6	%
United States Government and Agency Securities	—		53,586		—		—			53,586			9.0	%
Corporate Debt	—		214,355		—		—			214,355			36.2	%
Foreign Debt	—		47,728		—		—			47,728			8.1	%
State and Local Government	—		1,775		—		—			1,775			0.3	%
Other – Asset Backed	—		3,470		—		—			3,470			0.6	%
Subtotal – Fixed Income	—		324,511		—		—			324,511			54.8	%
Infrastructure	—		—		1,490		—			1,490			0.3	%
Real Estate	—		—		28,088		—			28,088			4.7	%
Alternative Investments	—		—		45,130		—			45,130			7.6	%
Securities Lending	—		26,178		—		—			26,178			4.4	%
Securities Lending Collateral (a)	—		—		—		(26,386		)	(26,386		)	(4.5	)%
Cash and Cash Equivalents	—		6,345		—		—			6,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,185			1,185			0.2	%
Total	$	136,403	$	405,827	$	74,708	$	(25,201	)	$	591,737		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,064	$	—	$	—	$	—		$	59,064		11.9	%
International	50,390		—		—		—			50,390			10.1	%
Options	—		1,414		—		—			1,414			0.3	%
Real Estate Investment Trusts	5,448		—		—		—			5,448			1.1	%
Common Collective Trust – Global	—		37,834		—		—			37,834			7.6	%
Common Collective Trust – International	—		1,854		—		—			1,854			0.4	%
Subtotal – Equities	114,902		41,102		—		—			156,004			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,030		—		—			3,030			0.6	%
United States Government and Agency Securities	—		45,139		—		—			45,139			9.0	%
Corporate Debt	—		180,566		—		—			180,566			36.2	%
Foreign Debt	—		40,205		—		—			40,205			8.1	%
State and Local Government	—		1,496		—		—			1,496			0.3	%
Other – Asset Backed	—		2,923		—		—			2,923			0.6	%
Subtotal – Fixed Income	—		273,359		—		—			273,359			54.8	%
Infrastructure	—		—		1,255		—			1,255			0.3	%
Real Estate	—		—		23,660		—			23,660			4.7	%
Alternative Investments	—		—		38,016		—			38,016			7.6	%
Securities Lending	—		22,051		—		—			22,051			4.4	%
Securities Lending Collateral (a)	—		—		—		(22,227		)	(22,227		)	(4.5	)%
Cash and Cash Equivalents	—		5,345		—		—			5,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		998			998			0.2	%
Total	$	114,902	$	341,857	$	62,931	$	(21,229	)	$	498,461		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	32,642	$	—	$	—	$	—		$	32,642		11.9	%
International	27,849		—		—		—			27,849			10.1	%
Options	—		781		—		—			781			0.3	%
Real Estate Investment Trusts	3,011		—		—		—			3,011			1.1	%
Common Collective Trust - Global	—		20,910		—		—			20,910			7.6	%
Common Collective Trust – International	—		1,025		—		—			1,025			0.4	%
Subtotal – Equities	63,502		22,716		—		—			86,218			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,675		—		—			1,675			0.6	%
United States Government and Agency Securities	—		24,947		—		—			24,947			9.0	%
Corporate Debt	—		99,792		—		—			99,792			36.2	%
Foreign Debt	—		22,220		—		—			22,220			8.1	%
State and Local Government	—		827		—		—			827			0.3	%
Other – Asset Backed	—		1,615		—		—			1,615			0.6	%
Subtotal – Fixed Income	—		151,076		—		—			151,076			54.8	%
Infrastructure	—		—		693		—			693			0.3	%
Real Estate	—		—		13,076		—			13,076			4.7	%
Alternative Investments	—		—		21,010		—			21,010			7.6	%
Securities Lending	—		12,187		—		—			12,187			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,284		)	(12,284		)	(4.5	)%
Cash and Cash Equivalents	—		2,954		—		—			2,954			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		552			552			0.2	%
Total	$	63,502	$	188,933	$	34,779	$	(11,732	)	$	275,482		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	34,382	$	—	$	—	$	—		$	34,382		11.9	%
International	29,332		—		—		—			29,332			10.1	%
Options	—		823		—		—			823			0.3	%
Real Estate Investment Trusts	3,171		—		—		—			3,171			1.1	%
Common Collective Trust – Global	—		22,023		—		—			22,023			7.6	%
Common Collective Trust – International	—		1,079		—		—			1,079			0.4	%
Subtotal – Equities	66,885		23,925		—		—			90,810			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,764		—		—			1,764			0.6	%
United States Government and Agency Securities	—		26,275		—		—			26,275			9.0	%
Corporate Debt	—		105,107		—		—			105,107			36.2	%
Foreign Debt	—		23,403		—		—			23,403			8.1	%
State and Local Government	—		871		—		—			871			0.3	%
Other – Asset Backed	—		1,701		—		—			1,701			0.6	%
Subtotal – Fixed Income	—		159,121		—		—			159,121			54.8	%
Infrastructure	—		—		730		—			730			0.3	%
Real Estate	—		—		13,772		—			13,772			4.7	%
Alternative Investments	—		—		22,129		—			22,129			7.6	%
Securities Lending	—		12,836		—		—			12,836			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,938		)	(12,938		)	(4.5	)%
Cash and Cash Equivalents	—		3,111		—		—			3,111			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		581			581			0.2	%
Total	$	66,885	$	198,993	$	36,631	$	(12,357	)	$	290,152		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy by Registrant Subsidiary for pension assets:

APCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	31,757		$	43,939	$	75,696
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		2,829			3,276		6,105
Relating to Assets Sold During the Period	—		9,831			1,616		11,447
Purchases and Sales	1,617		(13,930		)	154		(12,159		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,617	$	30,487		$	48,985	$	81,089

I&M	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	28,275		$	39,121	$	67,396
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		417			3,902		4,319
Relating to Assets Sold During the Period	—		1,448			1,924		3,372
Purchases and Sales	1,490		(2,052		)	183		(379		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,490	$	28,088		$	45,130	$	74,708

OPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	25,367		$	35,098	$	60,465
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		3,802			1,895		5,697
Relating to Assets Sold During the Period	—		13,219			934		14,153
Purchases and Sales	1,255		(18,728		)	89		(17,384		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,255	$	23,660		$	38,016	$	62,931

PSO	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	13,380		$	18,513	$	31,893
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		683			1,622		2,305
Relating to Assets Sold During the Period	—		2,371			799		3,170
Purchases and Sales	693		(3,358		)	76		(2,589		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	693	$	13,076		$	21,010	$	34,779

SWEPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	14,106		$	19,517	$	33,623
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		745			1,696		2,441
Relating to Assets Sold During the Period	—		2,590			836		3,426
Purchases and Sales	730		(3,669		)	80		(2,859		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	730	$	13,772		$	22,129	$	36,631

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	77,221	$	—	$	—	$	—	$	77,221	27.5	%
International	93,871		—		—		—		93,871		33.5	%
Options	—		2,712		—		—		2,712		1.0	%
Common Collective Trust – Global	—		4,905		—		—		4,905		1.8	%
Subtotal – Equities	171,092		7,617		—		—		178,709		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		17,188		—		—		17,188		6.1	%
United States Government and Agency Securities	—		11,775		—		—		11,775		4.2	%
Corporate Debt	—		20,787		—		—		20,787		7.4	%
Foreign Debt	—		3,532		—		—		3,532		1.3	%
State and Local Government	—		975		—		—		975		0.3	%
Other – Asset Backed	—		820		—		—		820		0.3	%
Subtotal – Fixed Income	—		55,077		—		—		55,077		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,709		—		—		1,709		0.6	%
United States Bonds	—		35,131		—		—		35,131		12.5	%
Subtotal – Trust Owned Life Insurance	—		36,840		—		—		36,840		13.1	%
Cash and Cash Equivalents	7,751		1,586		—		—		9,337		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		670		670		0.2	%
Total	$	178,843	$	101,120	$	—	$	670	$	280,633	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	55,695	$	—	$	—	$	—	$	55,695	27.5	%
International	67,705		—		—		—		67,705		33.5	%
Options	—		1,956		—		—		1,956		1.0	%
Common Collective Trust – Global	—		3,538		—		—		3,538		1.8	%
Subtotal – Equities	123,400		5,494		—		—		128,894		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,397		—		—		12,397		6.1	%
United States Government and Agency Securities	—		8,493		—		—		8,493		4.2	%
Corporate Debt	—		14,993		—		—		14,993		7.4	%
Foreign Debt	—		2,547		—		—		2,547		1.3	%
State and Local Government	—		704		—		—		704		0.3	%
Other – Asset Backed	—		592		—		—		592		0.3	%
Subtotal – Fixed Income	—		39,726		—		—		39,726		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,232		—		—		1,232		0.6	%
United States Bonds	—		25,339		—		—		25,339		12.5	%
Subtotal – Trust Owned Life Insurance	—		26,571		—		—		26,571		13.1	%
Cash and Cash Equivalents	5,590		1,144		—		—		6,734		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		483		483		0.2	%
Total	$	128,990	$	72,935	$	—	$	483	$	202,408	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	56,743	$	—	$	—	$	—	$	56,743	27.5	%
International	68,977		—		—		—		68,977		33.5	%
Options	—		1,993		—		—		1,993		1.0	%
Common Collective Trust – Global	—		3,604		—		—		3,604		1.8	%
Subtotal – Equities	125,720		5,597		—		—		131,317		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,630		—		—		12,630		6.1	%
United States Government and Agency Securities	—		8,653		—		—		8,653		4.2	%
Corporate Debt	—		15,274		—		—		15,274		7.4	%
Foreign Debt	—		2,595		—		—		2,595		1.3	%
State and Local Government	—		717		—		—		717		0.3	%
Other – Asset Backed	—		603		—		—		603		0.3	%
Subtotal – Fixed Income	—		40,472		—		—		40,472		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,256		—		—		1,256		0.6	%
United States Bonds	—		25,815		—		—		25,815		12.5	%
Subtotal – Trust Owned Life Insurance	—		27,071		—		—		27,071		13.1	%
Cash and Cash Equivalents	5,695		1,165		—		—		6,860		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		492		492		0.2	%
Total	$	131,415	$	74,305	$	—	$	492	$	206,212	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,425	$	—	$	—	$	—	$	26,425	27.5	%
International	32,126		—		—		—		32,126		33.5	%
Options	—		928		—		—		928		1.0	%
Common Collective Trust – Global	—		1,679		—		—		1,679		1.8	%
Subtotal – Equities	58,551		2,607		—		—		61,158		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		5,882		—		—		5,882		6.1	%
United States Government and Agency Securities	—		4,030		—		—		4,030		4.2	%
Corporate Debt	—		7,114		—		—		7,114		7.4	%
Foreign Debt	—		1,209		—		—		1,209		1.3	%
State and Local Government	—		334		—		—		334		0.3	%
Other – Asset Backed	—		281		—		—		281		0.3	%
Subtotal – Fixed Income	—		18,850		—		—		18,850		19.6	%
Trust Owned Life Insurance:
International Equities	—		585		—		—		585		0.6	%
United States Bonds	—		12,023		—		—		12,023		12.5	%
Subtotal – Trust Owned Life Insurance	—		12,608		—		—		12,608		13.1	%
Cash and Cash Equivalents	2,653		543		—		—		3,196		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		229		229		0.2	%
Total	$	61,204	$	34,608	$	—	$	229	$	96,041	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	29,286	$	—	$	—	$	—	$	29,286	27.5	%
International	35,601		—		—		—		35,601		33.5	%
Options	—		1,029		—		—		1,029		1.0	%
Common Collective Trust – Global	—		1,860		—		—		1,860		1.8	%
Subtotal – Equities	64,887		2,889		—		—		67,776		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		6,519		—		—		6,519		6.1	%
United States Government and Agency Securities	—		4,466		—		—		4,466		4.2	%
Corporate Debt	—		7,884		—		—		7,884		7.4	%
Foreign Debt	—		1,339		—		—		1,339		1.3	%
State and Local Government	—		370		—		—		370		0.3	%
Other – Asset Backed	—		311		—		—		311		0.3	%
Subtotal – Fixed Income	—		20,889		—		—		20,889		19.6	%
Trust Owned Life Insurance:
International Equities	—		648		—		—		648		0.6	%
United States Bonds	—		13,324		—		—		13,324		12.5	%
Subtotal – Trust Owned Life Insurance	—		13,972		—		—		13,972		13.1	%
Cash and Cash Equivalents	2,940		601		—		—		3,541		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		254		254		0.2	%
Total	$	67,827	$	38,351	$	—	$	254	$	106,432	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	145,515	$	—	$	—	$	—		$	145,515		23.2	%
International	68,591		—		—		—			68,591			10.9	%
Real Estate Investment Trusts	7,718		—		—		—			7,718			1.2	%
Common Collective Trust – International	—		1,302		—		—			1,302			0.2	%
Subtotal – Equities	221,824		1,302		—		—			223,126			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,456		—		—			3,456			0.5	%
United States Government and Agency Securities	—		51,556		—		—			51,556			8.2	%
Corporate Debt	—		213,280		—		—			213,280			34.0	%
Foreign Debt	—		45,818		—		—			45,818			7.3	%
State and Local Government	—		3,730		—		—			3,730			0.6	%
Other – Asset Backed	—		4,437		—		—			4,437			0.7	%
Subtotal – Fixed Income	—		322,277		—		—			322,277			51.3	%
Real Estate	—		—		31,757		—			31,757			5.0	%
Alternative Investments	—		—		43,939		—			43,939			7.0	%
Securities Lending	—		4,689		—		—			4,689			0.8	%
Securities Lending Collateral (a)	—		—		—		(6,024		)	(6,024		)	(0.9	)%
Cash and Cash Equivalents	—		6,476		—		—			6,476			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,755			1,755			0.3	%
Total	$	221,824	$	334,744	$	75,696	$	(4,269	)	$	627,995		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	129,561	$	—	$	—	$	—		$	129,561		23.2	%
International	61,071		—		—		—			61,071			10.9	%
Real Estate Investment Trusts	6,872		—		—		—			6,872			1.2	%
Common Collective Trust – International	—		1,159		—		—			1,159			0.2	%
Subtotal – Equities	197,504		1,159		—		—			198,663			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,077		—		—			3,077			0.5	%
United States Government and Agency Securities	—		45,904		—		—			45,904			8.2	%
Corporate Debt	—		189,896		—		—			189,896			34.0	%
Foreign Debt	—		40,794		—		—			40,794			7.3	%
State and Local Government	—		3,321		—		—			3,321			0.6	%
Other – Asset Backed	—		3,951		—		—			3,951			0.7	%
Subtotal – Fixed Income	—		286,943		—		—			286,943			51.3	%
Real Estate	—		—		28,275		—			28,275			5.0	%
Alternative Investments	—		—		39,121		—			39,121			7.0	%
Securities Lending	—		4,175		—		—			4,175			0.8	%
Securities Lending Collateral (a)	—		—		—		(5,363		)	(5,363		)	(0.9	)%
Cash and Cash Equivalents	—		5,766		—		—			5,766			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,563			1,563			0.3	%
Total	$	197,504	$	298,043	$	67,396	$	(3,800	)	$	559,143		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	116,233	$	—	$	—	$	—		$	116,233		23.2	%
International	54,790		—		—		—			54,790			10.9	%
Real Estate Investment Trusts	6,165		—		—		—			6,165			1.2	%
Common Collective Trust – International	—		1,040		—		—			1,040			0.2	%
Subtotal – Equities	177,188		1,040		—		—			178,228			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		2,761		—		—			2,761			0.5	%
United States Government and Agency Securities	—		41,183		—		—			41,183			8.2	%
Corporate Debt	—		170,365		—		—			170,365			34.0	%
Foreign Debt	—		36,599		—		—			36,599			7.3	%
State and Local Government	—		2,980		—		—			2,980			0.6	%
Other – Asset Backed	—		3,545		—		—			3,545			0.7	%
Subtotal – Fixed Income	—		257,433		—		—			257,433			51.3	%
Real Estate	—		—		25,367		—			25,367			5.0	%
Alternative Investments	—		—		35,098		—			35,098			7.0	%
Securities Lending	—		3,745		—		—			3,745			0.8	%
Securities Lending Collateral (a)	—		—		—		(4,812		)	(4,812		)	(0.9	)%
Cash and Cash Equivalents	—		5,173		—		—			5,173			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,402			1,402			0.3	%
Total	$	177,188	$	267,391	$	60,465	$	(3,410	)	$	501,634		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	61,309	$	—	$	—	$	—		$	61,309		23.2	%
International	28,900		—		—		—			28,900			10.9	%
Real Estate Investment Trusts	3,252		—		—		—			3,252			1.2	%
Common Collective Trust – International	—		548		—		—			548			0.2	%
Subtotal – Equities	93,461		548		—		—			94,009			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,456		—		—			1,456			0.5	%
United States Government and Agency Securities	—		21,723		—		—			21,723			8.2	%
Corporate Debt	—		89,863		—		—			89,863			34.0	%
Foreign Debt	—		19,305		—		—			19,305			7.3	%
State and Local Government	—		1,572		—		—			1,572			0.6	%
Other – Asset Backed	—		1,870		—		—			1,870			0.7	%
Subtotal – Fixed Income	—		135,789		—		—			135,789			51.3	%
Real Estate	—		—		13,380		—			13,380			5.0	%
Alternative Investments	—		—		18,513		—			18,513			7.0	%
Securities Lending	—		1,976		—		—			1,976			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,538		)	(2,538		)	(0.9	)%
Cash and Cash Equivalents	—		2,729		—		—			2,729			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		739			739			0.3	%
Total	$	93,461	$	141,042	$	31,893	$	(1,799	)	$	264,597		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	64,634	$	—	$	—	$	—		$	64,634		23.2	%
International	30,467		—		—		—			30,467			10.9	%
Real Estate Investment Trusts	3,428		—		—		—			3,428			1.2	%
Common Collective Trust – International	—		578		—		—			578			0.2	%
Subtotal – Equities	98,529		578		—		—			99,107			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,535		—		—			1,535			0.5	%
United States Government and Agency Securities	—		22,901		—		—			22,901			8.2	%
Corporate Debt	—		94,736		—		—			94,736			34.0	%
Foreign Debt	—		20,352		—		—			20,352			7.3	%
State and Local Government	—		1,657		—		—			1,657			0.6	%
Other – Asset Backed	—		1,971		—		—			1,971			0.7	%
Subtotal – Fixed Income	—		143,152		—		—			143,152			51.3	%
Real Estate	—		—		14,106		—			14,106			5.0	%
Alternative Investments	—		—		19,517		—			19,517			7.0	%
Securities Lending	—		2,083		—		—			2,083			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,676		)	(2,676		)	(0.9	)%
Cash and Cash Equivalents	—		2,877		—		—			2,877			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		780			780			0.3	%
Total	$	98,529	$	148,690	$	33,623	$	(1,896	)	$	278,946		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for pension assets by Registrant Subsidiary:

APCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	29,063		$	25,888	$	54,951
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,861			1,932		5,793
Relating to Assets Sold During the Period	—			1,949		1,949
Purchases and Sales	(1,167		)	14,170		13,003
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	31,757		$	43,939	$	75,696

I&M	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	25,811		$	22,992	$	48,803
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,531			1,727		5,258
Relating to Assets Sold During the Period	—			1,741		1,741
Purchases and Sales	(1,067		)	12,661		11,594
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	28,275		$	39,121	$	67,396

OPCo	Real Estate			Alternative Investments			Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	47,464		$	42,279		$	89,743
Transfer of OPCo Generation Plan Assets	(26,218		)	(36,275		)	(62,493		)
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	5,907			3,113			9,020
Relating to Assets Sold During the Period	—			3,142			3,142
Purchases and Sales	(1,786		)	22,839			21,053
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Balance as of December 31, 2013	$	25,367		$	35,098		$	60,465

PSO	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	12,382		$	11,030	$	23,412
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,430			801		2,231
Relating to Assets Sold During the Period	—			808		808
Purchases and Sales	(432		)	5,874		5,442
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	13,380		$	18,513	$	31,893

SWEPCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	13,078		$	11,649	$	24,727
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,474			841		2,315
Relating to Assets Sold During the Period	—			850		850
Purchases and Sales	(446		)	6,177		5,731
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	14,106		$	19,517	$	33,623

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	79,369	$	—	$	—	$	—	$	79,369	27.9	%
International	103,188		—		—		—		103,188		36.2	%
Common Collective Trust – Global	—		2,463		—		—		2,463		0.9	%
Subtotal – Equities	182,557		2,463		—		—		185,020		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		14,737		—		—		14,737		5.2	%
United States Government and Agency Securities	—		9,476		—		—		9,476		3.3	%
Corporate Debt	—		18,458		—		—		18,458		6.5	%
Foreign Debt	—		3,605		—		—		3,605		1.2	%
State and Local Government	—		776		—		—		776		0.3	%
Other – Asset Backed	—		1,362		—		—		1,362		0.5	%
Subtotal – Fixed Income	—		48,414		—		—		48,414		17.0	%
Trust Owned Life Insurance:
International Equities	—		2,219		—		—		2,219		0.8	%
United States Bonds	—		35,470		—		—		35,470		12.4	%
Subtotal – Trust Owned Life Insurance	—		37,689		—		—		37,689		13.2	%
Cash and Cash Equivalents	11,441		1,470		—		—		12,911		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		806		806		0.3	%
Total	$	193,998	$	90,036	$	—	$	806	$	284,840	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	57,460	$	—	$	—	$	—	$	57,460	27.9	%
International	74,705		—		—		—		74,705		36.2	%
Common Collective Trust – Global	—		1,783		—		—		1,783		0.9	%
Subtotal – Equities	132,165		1,783		—		—		133,948		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,669		—		—		10,669		5.2	%
United States Government and Agency Securities	—		6,860		—		—		6,860		3.3	%
Corporate Debt	—		13,363		—		—		13,363		6.5	%
Foreign Debt	—		2,610		—		—		2,610		1.2	%
State and Local Government	—		562		—		—		562		0.3	%
Other – Asset Backed	—		986		—		—		986		0.5	%
Subtotal – Fixed Income	—		35,050		—		—		35,050		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,607		—		—		1,607		0.8	%
United States Bonds	—		25,679		—		—		25,679		12.4	%
Subtotal – Trust Owned Life Insurance	—		27,286		—		—		27,286		13.2	%
Cash and Cash Equivalents	8,283		1,064		—		—		9,347		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		583		583		0.3	%
Total	$	140,448	$	65,183	$	—	$	583	$	206,214	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,069	$	—	$	—	$	—	$	59,069	27.9	%
International	76,799		—		—		—		76,799		36.2	%
Common Collective Trust – Global	—		1,833		—		—		1,833		0.9	%
Subtotal – Equities	135,868		1,833		—		—		137,701		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,968		—		—		10,968		5.2	%
United States Government and Agency Securities	—		7,053		—		—		7,053		3.3	%
Corporate Debt	—		13,738		—		—		13,738		6.5	%
Foreign Debt	—		2,683		—		—		2,683		1.2	%
State and Local Government	—		577		—		—		577		0.3	%
Other – Asset Backed	—		1,014		—		—		1,014		0.5	%
Subtotal – Fixed Income	—		36,033		—		—		36,033		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,652		—		—		1,652		0.8	%
United States Bonds	—		26,399		—		—		26,399		12.4	%
Subtotal – Trust Owned Life Insurance	—		28,051		—		—		28,051		13.2	%
Cash and Cash Equivalents	8,515		1,094		—		—		9,609		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		600		600		0.3	%
Total	$	144,383	$	67,011	$	—	$	600	$	211,994	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,842	$	—	$	—	$	—	$	26,842	27.9	%
International	34,898		—		—		—		34,898		36.2	%
Common Collective Trust – Global	—		833		—		—		833		0.9	%
Subtotal – Equities	61,740		833		—		—		62,573		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		4,984		—		—		4,984		5.2	%
United States Government and Agency Securities	—		3,205		—		—		3,205		3.3	%
Corporate Debt	—		6,243		—		—		6,243		6.5	%
Foreign Debt	—		1,219		—		—		1,219		1.2	%
State and Local Government	—		262		—		—		262		0.3	%
Other – Asset Backed	—		461		—		—		461		0.5	%
Subtotal – Fixed Income	—		16,374		—		—		16,374		17.0	%
Trust Owned Life Insurance:
International Equities	—		751		—		—		751		0.8	%
United States Bonds	—		11,996		—		—		11,996		12.4	%
Subtotal – Trust Owned Life Insurance	—		12,747		—		—		12,747		13.2	%
Cash and Cash Equivalents	3,869		497		—		—		4,366		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		273		273		0.3	%
Total	$	65,609	$	30,451	$	—	$	273	$	96,333	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	30,022	$	—	$	—	$	—	$	30,022	27.9	%
International	39,034		—		—		—		39,034		36.2	%
Common Collective Trust – Global	—		932		—		—		932		0.9	%
Subtotal – Equities	69,056		932		—		—		69,988		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		5,575		—		—		5,575		5.2	%
United States Government and Agency Securities	—		3,585		—		—		3,585		3.3	%
Corporate Debt	—		6,982		—		—		6,982		6.5	%
Foreign Debt	—		1,364		—		—		1,364		1.2	%
State and Local Government	—		294		—		—		294		0.3	%
Other – Asset Backed	—		515		—		—		515		0.5	%
Subtotal – Fixed Income	—		18,315		—		—		18,315		17.0	%
Trust Owned Life Insurance:
International Equities	—		840		—		—		840		0.8	%
United States Bonds	—		13,418		—		—		13,418		12.4	%
Subtotal – Trust Owned Life Insurance	—		14,258		—		—		14,258		13.2	%
Cash and Cash Equivalents	4,328		556		—		—		4,884		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		305		305		0.3	%
Total	$	73,384	$	34,061	$	—	$	305	$	107,750	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Determination of Pension Expense

The determination of pension expense or income is based on a market-related valuation of assets which reduces year-to-year volatility.  This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur.  Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

The accumulated benefit obligation for the pension plans is as follows:

Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	688,632	$	598,190	$	512,467	$	270,059	$	281,210
Nonqualified Pension Plans	464		470		69		2,750		1,749
Total as of December 31, 2014	$	689,096	$	598,660	$	512,536	$	272,809	$	282,959
Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	653,968	$	560,443	$	512,798	$	248,472	$	256,083
Nonqualified Pension Plans	200		326		6		1,387		1,115
Total as of December 31, 2013	$	654,168	$	560,769	$	512,804	$	249,859	$	257,198

For the underfunded pension plans that had an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of these plans as of December 31, 2014 and 2013 were as follows:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	702,805		$	617,948		$	526,250		$	2,770		$	1,790
Accumulated Benefit Obligation	$	689,096		$	598,660		$	512,536		$	2,750		$	1,749
Fair Value of Plan Assets	642,289			591,737			498,461			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2014	$	(46,807	)	$	(6,923	)	$	(14,075	)	$	(2,750	)	$	(1,749	)
	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	663,231		$	574,699		$	523,643		$	1,394		$	1,124
Accumulated Benefit Obligation	$	654,168		$	560,769		$	512,804		$	1,387		$	1,115
Fair Value of Plan Assets	627,995			559,143			501,634			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2013	$	(26,173	)	$	(1,626	)	$	(11,170	)	$	(1,387	)	$	(1,115	)

Estimated Future Benefit Payments and Contributions

The estimated pension benefit payments and contributions to the trust are at least the minimum amount required by the Employee Retirement Income Security Act plus payment of unfunded nonqualified benefits.  For the qualified pension plan, additional discretionary contributions may also be made to maintain the funded status of the plan.   For OPEB plans, expected payments include the payment of unfunded benefits.  The following table provides the estimated contributions and payments by Registrant Subsidiary for 2015:

Company	Pension Plans		Other Postretirement Benefit Plans
	(in thousands)
APCo	$	11,631	$	2,884
I&M	12,492		—
OPCo	7,847		—
PSO	6,656		—
SWEPCo	7,840		—

The tables below reflect the total benefits expected to be paid from the plan or from the Registrant Subsidiaries' assets.  The payments include the participants’ contributions to the plan for their share of the cost.  Effective for employees hired after December 2013, retiree medical coverage will not be provided.  Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results.  The estimated payments for the pension benefits and OPEB are as follows:

Pension Plans	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	42,859	$	33,114	$	36,277	$	18,950	$	18,872
2016	43,091		33,813		36,174		19,626		18,747
2017	43,484		35,748		35,571		20,175		20,407
2018	45,122		36,948		35,822		21,118		21,019
2019	45,488		38,727		36,179		21,732		22,059
Years 2020 to 2024, in Total	236,107		209,813		176,022		109,800		118,909

Other Postretirement Benefit Plans: Benefit Payments	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	24,828	$	15,088	$	16,379	$	6,989	$	7,401
2016	24,603		15,363		16,289		7,067		7,504
2017	24,468		15,484		16,088		7,074		7,674
2018	24,820		15,637		16,122		7,132		7,840
2019	24,290		15,804		16,079		7,278		7,885
Years 2020 to 2024, in Total	121,401		84,026		80,066		38,852		43,503

Other Postretirement Benefit Plans: Medicare Subsidy Receipts	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	232	$	—	$	—	$	—	$	—
2016	236		—		—		—		—
2017	234		—		—		—		—
2018	231		—		—		—		—
2019	230		—		—		—		—
Years 2020 to 2024, in Total	1,080		—		—		—		—

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (credit) by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

APCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	7,036		$	6,171		$	7,565		$	1,448		$	2,566		$	5,387
Interest Cost	29,624			27,662			30,211			12,788			13,454			18,462
Expected Return on Plan Assets	(33,927		)	(37,041		)	(41,944		)	(18,533		)	(18,147		)	(16,753		)
Amortization of Transition Obligation	—			—			—			—			—			780
Amortization of Prior Service Cost (Credit)	197			198			475			(10,050		)	(10,050		)	(2,862		)
Amortization of Net Actuarial Loss	16,593			25,025			20,339			4,582			12,249			10,526
Net Periodic Benefit Cost (Credit)	19,523			22,015			16,646			(9,765		)	72			15,540
Capitalized Portion	(6,819		)	(7,529		)	(6,525		)	3,411			(25		)	(6,092		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	12,704		$	14,486		$	10,121		$	(6,354	)	$	47		$	9,448

I&M	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	10,068		$	8,736		$	9,908		$	1,947		$	3,219		$	6,621
Interest Cost	26,293			24,100			26,245			7,638			8,221			12,785
Expected Return on Plan Assets	(30,993		)	(32,826		)	(37,566		)	(13,454		)	(13,183		)	(12,847		)
Amortization of Transition Obligation	—			—			—			—			—			132
Amortization of Prior Service Cost (Credit)	195			195			407			(9,421		)	(9,421		)	(2,383		)
Amortization of Net Actuarial Loss	14,585			21,688			17,569			2,368			7,526			7,050
Net Periodic Benefit Cost (Credit)	20,148			21,893			16,563			(10,922		)	(3,638		)	11,358
Capitalized Portion	(4,638		)	(4,576		)	(3,114		)	2,514			760			(2,135		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	15,510		$	17,317		$	13,449		$	(8,408	)	$	(2,878	)	$	9,223

OPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,140		$	5,285		$	11,003		$	1,026		$	2,882		$	8,748
Interest Cost	22,105			21,939			45,194			7,601			9,494			24,189
Expected Return on Plan Assets	(26,427		)	(29,919		)	(68,401		)	(13,519		)	(13,468		)	(22,555		)
Amortization of Transition Obligation	—			—			—			—			—			104
Amortization of Prior Service Cost (Credit)	157			157			743			(6,923		)	(6,962		)	(3,873		)
Amortization of Net Actuarial Loss	12,422			19,833			30,439			2,379			8,633			13,669
Net Periodic Benefit Cost (Credit)	13,397			17,295			18,978			(9,436		)	579			20,282
Capitalized Portion	(5,479		)	(6,192		)	(7,060		)	3,859			(207		)	(7,545		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,918		$	11,103		$	11,918		$	(5,577	)	$	372		$	12,737

PSO	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,207		$	5,562		$	5,951		$	839		$	1,372		$	2,836
Interest Cost	12,057			10,993			12,301			3,574			3,793			5,797
Expected Return on Plan Assets	(14,604		)	(15,675		)	(18,015		)	(6,300		)	(6,089		)	(5,922		)
Amortization of Prior Service Cost (Credit)	296			297			(948		)	(4,290		)	(4,289		)	(1,079		)
Amortization of Net Actuarial Loss	6,753			9,845			8,206			1,109			3,476			3,189
Net Periodic Benefit Cost (Credit)	9,709			11,022			7,495			(5,068		)	(1,737		)	4,821
Capitalized Portion	(3,320		)	(3,384		)	(2,533		)	1,733			533			(1,629		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	6,389		$	7,638		$	4,962		$	(3,335	)	$	(1,204	)	$	3,192

SWEPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	6,618		$	7,011		$	7,099		$	1,012		$	1,693		$	3,324
Interest Cost	12,651			11,454			12,537			3,992			4,301			6,673
Expected Return on Plan Assets	(15,427		)	(16,509		)	(18,866		)	(7,016		)	(6,881		)	(6,795		)
Amortization of Prior Service Cost (Credit)	349			349			(793		)	(5,156		)	(5,156		)	(933		)
Amortization of Net Actuarial Loss	7,046			10,214			8,330			1,235			3,928			3,659
Net Periodic Benefit Cost (Credit)	11,237			12,519			8,307			(5,933		)	(2,115		)	5,928
Capitalized Portion	(3,391		)	(3,518		)	(2,924		)	1,791			594			(2,087		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,846		$	9,001		$	5,383		$	(4,142	)	$	(1,521	)	$	3,841

Estimated amounts expected to be amortized to net periodic benefit costs (credits) and the impact on each Registrant Subsidiaries’ balance sheet during 2015 are shown in the following tables:

	APCo			I&M			OPCo			PSO			SWEPCo
Pension Plans – Components	(in thousands)
Net Actuarial Loss	$	14,457		$	12,713		$	10,823		$	5,891		$	6,146
Prior Service Cost	180			181			140			252			308
Total Estimated 2015 Amortization	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
Pension Plans – Expected to be Recorded as
Regulatory Asset	$	14,560		$	12,114		$	10,963		$	6,143		$	6,454
Deferred Income Taxes	27			273			—			—			—
Net of Tax AOCI	50			507			—			—			—
Total	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
	APCo			I&M			OPCo			PSO			SWEPCo
Other Postretirement Benefit Plans – Components	(in thousands)
Net Actuarial Loss	$	3,353		$	1,814		$	1,848		$	861		$	954
Prior Service Credit	(10,050		)	(9,421		)	(6,922		)	(4,290		)	(5,156		)
Total Estimated 2015 Amortization	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)
Other Postretirement Benefit Plans – Expected to be Recorded as
Regulatory Asset	$	(3,693	)	$	(6,934	)	$	(5,074	)	$	(3,429	)	$	(2,687	)
Deferred Income Taxes	(1,051		)	(236		)	—			—			(530		)
Net of Tax AOCI	(1,953		)	(437		)	—			—			(985		)
Total	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)

American Electric Power System Retirement Savings Plan

The Registrant Subsidiaries participate in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees who are not covered by a retirement savings plan of the United Mine Workers of America (UMWA).  This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for company matching contributions.  The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions.

The following table provides the cost for matching contributions to the retirement savings plans by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Company	2014		2013		2012
	(in thousands)
APCo	$	7,280	$	7,366	$	7,579
I&M	10,461		10,010		9,706
OPCo	5,207		6,502		10,798
PSO	4,026		3,784		3,732
SWEPCo	5,272		4,970		4,890

UMWA Benefits

APCo provides UMWA pension, health and welfare benefits for certain unionized mining retirees and their survivors who meet eligibility requirements.  UMWA trustees make final interpretive determinations with regard to all benefits.  The pension benefits are administered by UMWA trustees.  APCo administers the health and welfare benefits and pays them from its general assets.

The UMWA pension benefits are administered through a multiemployer plan that is different from single-employer plans as an employer’s contributions may be used to provide benefits to employees of other participating employers.  Required contributions not made by an employer may result in other employers bearing the unfunded plan obligations, while a withdrawing employer may be subject to a withdrawal liability.  UMWA pension benefits are provided through the United Mine Workers of America 1974 Pension Plan (Employer Identification Number: 52-1050282, Plan Number 002), which under the Pension Protection Act of 2006 (PPA) was in Critical Status for the plan year ending June 30, 2014 and in Seriously Endangered Status for the plan year ending June 30, 2013, without utilization of extended amortization provisions.  The Plan adopted a funding improvement plan in May 2012, as required under the PPA.

Contributions to the UMWA pension plan in 2014, 2013 and 2012 were immaterial and represent less than 5% of the total contributions in the plan’s latest annual report for the years ended June 30, 2014, 2013 and 2012.  UMWA pension contributions included a surcharge of 5% beginning December 2014 and are scheduled to include a surcharge of 10% beginning July 2015.  There are no minimum contributions for future years.

Public Service Co Of Oklahoma [Member]

Benefit Plans

BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Investments Held in Trust for Future Liabilities” and “Fair Value Measurements of Assets and Liabilities” sections of Note 1.

The Registrant Subsidiaries participate in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans.  Substantially all employees are covered by the qualified plan or both the qualified and a nonqualified pension plan.  The Registrant Subsidiaries also participate in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

Due to the Registrant Subsidiaries’ participation in AEP’s benefits plans, the assumptions used by the actuary and the accounting for the plans by each subsidiary are the same.  This section details the assumptions that apply to all Registrant Subsidiaries and the rate of compensation increase for each subsidiary.

The Registrant Subsidiaries recognize the funded status associated with defined benefit pension and OPEB plans in their balance sheets.  Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance.  The Registrant Subsidiaries recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of other comprehensive income, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost.  The Registrant Subsidiaries record a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that for ratemaking purposes are deferred for future recovery.  The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in an AOCI equity reduction or regulatory asset and deferred gains result in an AOCI equity addition or regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions as of December 31 of each year used in the measurement of the Registrant Subsidiaries’ benefit obligations are shown in the following tables:

	Pension Plans				Other Postretirement Benefit Plans
Assumption	2014		2013		2014		2013
Discount Rate	4.00	%	4.70	%	4.00	%	4.70	%

	Pension Plans
Assumption – Rate of Compensation Increase (a)	2014		2013
APCo	4.45	%	4.60	%
I&M	4.80	%	4.90	%
OPCo	4.80	%	5.00	%
PSO	4.80	%	4.90	%
SWEPCo	4.80	%	4.85	%

(a) Rates are for base pay only.  In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

A duration-based method is used to determine the discount rate for the plans.  A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability.  The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.  The discount rate is the same for each Registrant Subsidiary.

For 2014, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with the average increase shown in the table above.  The compensation increase rates reflect variations in each Registrant Subsidiaries' population participating in the pension plan.

Updated mortality assumptions based on mortality tables issued by the Society of Actuaries in October 2014 were used for the December 31, 2014 benefit obligation measurements. These updates resulted in approximate benefit obligation increases by Registrant Subsidiary as shown in the following table:

	Pension Plans		Other Postretirement Benefit Plans
Increase in Benefit Obligation	(in thousands)
APCo	$	17,946	$	2,271
I&M	15,117		1,644
OPCo	14,525		310
PSO	6,811		555
SWEPCo	6,445		775

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions as of January 1 of each year used in the measurement of each Registrant Subsidiaries’ benefit costs are shown in the following tables:

	Pension Plans						Other Postretirement Benefit Plans
Assumptions	2014		2013		2012		2014		2013		2012
Discount Rate	4.70	%	3.95	%	4.55	%	4.70	%	3.95	%	4.75	%
Expected Return on Plan Assets	6.00	%	6.50	%	7.25	%	6.75	%	7.00	%	7.25	%

	Pension Plans
Assumption – Rate of Compensation Increase	2014		2013		2012
APCo	4.60	%	4.70	%	4.70	%
I&M	4.90	%	5.00	%	5.00	%
OPCo	5.00	%	5.00	%	5.00	%
PSO	4.90	%	4.90	%	4.90	%
SWEPCo	4.85	%	4.75	%	4.75	%

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation and current prospects for economic growth.  The expected return on plan assets is the same for each Registrant Subsidiary.

The health care trend rate assumptions as of January 1 of each year used for OPEB plans measurement purposes are shown below:

Health Care Trend Rates	2014		2013
Initial	6.50	%	6.75	%
Ultimate	5.00	%	5.00	%
Year Ultimate Reached	2020		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the OPEB health care plans.  A 1% change in assumed health care cost trend rates would have the following effects:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Effect on Total Service and Interest Cost Components of Net Periodic Postretirement Health Care Benefit Cost:
1% Increase	$	902		$	343		$	308		$	158		$	179
1% Decrease	(691		)	(264		)	(237		)	(121		)	(138		)
Effect on the Health Care Component of the Accumulated Postretirement Benefit Obligation:
1% Increase	$	17,260		$	7,117		$	7,251		$	3,377		$	3,742
1% Decrease	(13,614		)	(5,630		)	(5,736		)	(2,671		)	(2,960		)

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets.  The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits.  The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment.  Management monitors the plans to control security diversification and ensure compliance with the investment policy.  As of December 31, 2014, the assets were invested in compliance with all investment limits.  See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status as of December 31, 2014 and 2013

The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status as of December 31.  The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

APCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	663,231		$	718,460		$	279,884		$	348,990
Service Cost	7,036			6,171			1,448			2,566
Interest Cost	29,624			27,662			12,788			13,454
Actuarial (Gain) Loss	41,671			(45,619		)	(8,975		)	(66,056		)
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Participant Contributions	—			—			7,196			6,600
Medicare Subsidy	—			—			1,391			1,550
Benefit Obligation as of December 31,	$	702,805		$	663,231		$	267,148		$	279,884
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	627,995		$	621,570		$	284,840		$	267,758
Actual Gain on Plan Assets	44,052			49,832			11,836			34,289
Company Contributions	8,999			36			3,345			3,413
Participant Contributions	—			—			7,196			6,600
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Fair Value of Plan Assets as of December 31,	$	642,289		$	627,995		$	280,633		$	284,840
Funded (Underfunded) Status as of December 31,	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

I&M	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	574,699		$	618,973		$	166,497		$	218,553
Service Cost	10,068			8,736			1,947			3,219
Interest Cost	26,293			24,100			7,638			8,221
Actuarial (Gain) Loss	38,466			(41,631		)	(4,925		)	(52,800		)
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Participant Contributions	—			—			5,168			4,745
Medicare Subsidy	—			—			1,064			1,172
Benefit Obligation as of December 31,	$	617,948		$	574,699		$	161,659		$	166,497
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	559,143		$	552,026		$	206,214		$	194,128
Actual Gain on Plan Assets	55,295			42,584			6,664			23,844
Company Contributions	8,877			12			92			110
Participant Contributions	—			—			5,168			4,745
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Fair Value of Plan Assets as of December 31,	$	591,737		$	559,143		$	202,408		$	206,214
Funded (Underfunded) Status as of December 31,	$	(26,211	)	$	(15,556	)	$	40,749		$	39,717

OPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	523,643		$	1,068,186		$	171,164		$	466,290
Transfer of OPCo Generation Benefit Obligation	—			(499,725		)	—			(250,843		)
Service Cost	5,140			5,285			1,026			2,882
Interest Cost	22,105			21,939			7,601			9,494
Actuarial (Gain) Loss	6,761			(34,373		)	(4,286		)	(44,149		)
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Participant Contributions	—			—			5,564			5,199
Medicare Subsidy	—			—			981			1,135
Benefit Obligation as of December 31,	$	526,250		$	523,643		$	164,697		$	171,164
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	501,634		$	1,015,115		$	211,994		$	366,301
Transfer of OPCo Generation Plan Assets	—			(506,076		)	—			(170,650		)
Actual Gain on Plan Assets	21,679			30,264			6,007			29,576
Company Contributions	6,547			—			—			412
Participant Contributions	—			—			5,564			5,199
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Fair Value of Plan Assets as of December 31,	$	498,461		$	501,634		$	206,212		$	211,994
Funded (Underfunded) Status as of December 31,	$	(27,789	)	$	(22,009	)	$	41,515		$	40,830

PSO	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	260,710		$	279,685		$	77,779		$	99,680
Service Cost	5,207			5,562			839			1,372
Interest Cost	12,057			10,993			3,574			3,793
Actuarial (Gain) Loss	25,708			(15,381		)	(952		)	(22,070		)
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Participant Contributions	—			—			2,304			2,229
Medicare Subsidy	—			—			467			516
Benefit Obligation as of December 31,	$	285,405		$	260,710		$	76,706		$	77,779
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	264,597		$	264,823		$	96,333		$	90,521
Actual Gain on Plan Assets	24,607			19,892			4,709			11,324
Company Contributions	4,555			31			—			—
Participant Contributions	—			—			2,304			2,229
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Fair Value of Plan Assets as of December 31,	$	275,482		$	264,597		$	96,041		$	96,333
Funded (Underfunded) Status as of December 31,	$	(9,923	)	$	3,887		$	19,335		$	18,554

SWEPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	270,564		$	285,560		$	86,997		$	109,948
Service Cost	6,618			7,011			1,012			1,693
Interest Cost	12,651			11,454			3,992			4,301
Actuarial (Gain) Loss	27,511			(12,818		)	(2,296		)	(23,852		)
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Participant Contributions	—			—			2,532			2,410
Medicare Subsidy	—			—			499			554
Benefit Obligation as of December 31,	$	298,166		$	270,564		$	85,005		$	86,997
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	278,946		$	279,699		$	107,750		$	99,846
Actual Gain on Plan Assets	26,482			19,823			3,881			13,551
Company Contributions	3,902			67			—			—
Participant Contributions	—			—			2,532			2,410
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Fair Value of Plan Assets as of December 31,	$	290,152		$	278,946		$	106,432		$	107,750
Funded (Underfunded) Status as of December 31,	$	(8,014	)	$	8,382		$	21,427		$	20,753

Amounts Recognized on the Registrant Subsidiaries' Balance Sheets as of December 31, 2014 and 2013

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
APCo	2014			2013			2014			2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	56,498		$	27,945
Other Current Liabilities – Accrued Short-term Benefit Liability	(39		)	(34		)	(2,884		)	(2,970		)
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(60,477		)	(35,202		)	(40,129		)	(20,019		)
Funded (Underfunded) Status	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
I&M	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	40,749	$	39,590
Other Current Liabilities – Accrued Short-term Benefit Liability	(28		)	(43		)	—		—
Deferred Credits and Other Noncurrent Liabilities – Accrued Long-term Benefit Liability	(26,183		)	(15,513		)	—		127
Funded (Underfunded) Status	$	(26,211	)	$	(15,556	)	$	40,749	$	39,717

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
OPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	41,515	$	39,496
Other Current Liabilities – Accrued Short-term Benefit Liability	(1		)	(1		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(27,788		)	(22,008		)	—		1,334
Funded (Underfunded) Status	$	(27,789	)	$	(22,009	)	$	41,515	$	40,830

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
PSO	2014			2013			2014		2013
	(in thousands)
Employee Benefits and Pension Assets – Prepaid Benefit Costs	$	—		$	5,280		$	19,335	$	17,349
Other Current Liabilities – Accrued Short-term Benefit Liability	(190		)	(107		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(9,733		)	(1,286		)	—		1,205
Funded (Underfunded) Status	$	(9,923	)	$	3,887		$	19,335	$	18,554

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
SWEPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	9,506		$	21,427	$	19,210
Other Current Liabilities – Accrued Short-term Benefit Liability	(82		)	(79		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(7,932		)	(1,045		)	—		1,543
Funded (Underfunded) Status	$	(8,014	)	$	8,382		$	21,427	$	20,753

Amounts Included in AOCI and Regulatory Assets as of December 31, 2014 and 2013

APCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	235,000	$	220,047	$	65,841		$	72,732
Prior Service Cost (Credit)	523		720		(90,626		)	(100,676		)
Recorded as
Regulatory Assets	$	232,815	$	217,937	$	(20,330	)	$	(25,473	)
Deferred Income Taxes	948		991		(1,559		)	(865		)
Net of Tax AOCI	1,760		1,839		(2,896		)	(1,606		)

I&M	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	137,945	$	138,367	$	54,444		$	54,949
Prior Service Cost (Credit)	510		705		(85,117		)	(94,538		)
Recorded as
Regulatory Assets	$	134,121	$	134,560	$	(26,264	)	$	(34,428	)
Deferred Income Taxes	1,517		1,579		(1,543		)	(1,807		)
Net of Tax AOCI	2,817		2,933		(2,866		)	(3,354		)

OPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	226,755	$	227,668	$	30,651		$	29,804
Prior Service Cost (Credit)	393		550		(62,377		)	(69,300		)
Recorded as
Regulatory Assets	$	227,148	$	228,218	$	(31,726	)	$	(39,496	)

PSO	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	102,641	$	93,688	$	25,242		$	25,712
Prior Service Cost (Credit)	536		832		(38,771		)	(43,061		)
Recorded as
Regulatory Assets	$	103,177	$	94,520	$	(13,529	)	$	(17,349	)

SWEPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	104,903	$	95,492	$	32,377		$	32,772
Prior Service Cost (Credit)	655		1,004		(46,826		)	(51,982		)
Recorded as
Regulatory Assets	$	105,558	$	96,496	$	(8,959	)	$	(11,836	)
Deferred Income Taxes	—		—		(1,921		)	(2,580		)
Net of Tax AOCI	—		—		(3,569		)	(4,794		)

Components of the change in amounts included in AOCI and Regulatory Assets by Registrant Subsidiary during the years ended December 31, 2014 and 2013 are as follows:

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Loss During the Year	$	31,546		$	14,163		$	11,509		$	15,706		$	16,457
Amortization of Actuarial Loss	(16,593		)	(14,585		)	(12,422		)	(6,753		)	(7,046		)
Amortization of Prior Service Cost	(197		)	(195		)	(157		)	(296		)	(349		)
Change for the Year Ended December 31, 2014	$	14,756		$	(617	)	$	(1,070	)	$	8,657		$	9,062

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(58,411	)	$	(51,388	)	$	(253,392	)	$	(19,599	)	$	(16,133	)
Amortization of Actuarial Loss	(25,025		)	(21,688		)	(19,833		)	(9,845		)	(10,214		)
Amortization of Prior Service Cost	(198		)	(195		)	(157		)	(297		)	(349		)
Change for the Year Ended December 31, 2013	$	(83,634	)	$	(73,271	)	$	(273,382	)	$	(29,741	)	$	(26,696	)

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial (Gain) Loss During the Year	$	(2,309	)	$	1,863		$	3,226		$	639		$	840
Amortization of Actuarial Loss	(4,582		)	(2,368		)	(2,379		)	(1,109		)	(1,235		)
Amortization of Prior Service Credit	10,050			9,421			6,923			4,290			5,156
Change for the Year Ended December 31, 2014	$	3,159		$	8,916		$	7,770		$	3,820		$	4,761

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(82,192	)	$	(63,460	)	$	(111,922	)	$	(27,305	)	$	(30,523	)
Amortization of Actuarial Loss	(12,249		)	(7,526		)	(8,633		)	(3,476		)	(3,928		)
Amortization of Prior Service Credit	10,050			9,421			6,962			4,289			5,156
Change for the Year Ended December 31, 2013	$	(84,391	)	$	(61,565	)	$	(113,593	)	$	(26,492	)	$	(29,295	)

Pension and Other Postretirement Benefits Plans’ Assets

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	76,107	$	—	$	—	$	—		$	76,107		11.9	%
International	64,930		—		—		—			64,930			10.1	%
Options	—		1,822		—		—			1,822			0.3	%
Real Estate Investment Trusts	7,019		—		—		—			7,019			1.1	%
Common Collective Trust – Global	—		48,751		—		—			48,751			7.6	%
Common Collective Trust – International	—		2,390		—		—			2,390			0.4	%
Subtotal – Equities	148,056		52,963		—		—			201,019			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,904		—		—			3,904			0.6	%
United States Government and Agency Securities	—		58,164		—		—			58,164			9.0	%
Corporate Debt	—		232,667		—		—			232,667			36.2	%
Foreign Debt	—		51,806		—		—			51,806			8.1	%
State and Local Government	—		1,927		—		—			1,927			0.3	%
Other – Asset Backed	—		3,766		—		—			3,766			0.6	%
Subtotal – Fixed Income	—		352,234		—		—			352,234			54.8	%
Infrastructure	—		—		1,617		—			1,617			0.3	%
Real Estate	—		—		30,487		—			30,487			4.7	%
Alternative Investments	—		—		48,985		—			48,985			7.6	%
Securities Lending	—		28,414		—		—			28,414			4.4	%
Securities Lending Collateral (a)	—		—		—		(28,641		)	(28,641		)	(4.5	)%
Cash and Cash Equivalents	—		6,888		—		—			6,888			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,286			1,286			0.2	%
Total	$	148,056	$	440,499	$	81,089	$	(27,355	)	$	642,289		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	70,116	$	—	$	—	$	—		$	70,116		11.9	%
International	59,820		—		—		—			59,820			10.1	%
Options	—		1,678		—		—			1,678			0.3	%
Real Estate Investment Trusts	6,467		—		—		—			6,467			1.1	%
Common Collective Trust – Global	—		44,914		—		—			44,914			7.6	%
Common Collective Trust – International	—		2,201		—		—			2,201			0.4	%
Subtotal – Equities	136,403		48,793		—		—			185,196			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,597		—		—			3,597			0.6	%
United States Government and Agency Securities	—		53,586		—		—			53,586			9.0	%
Corporate Debt	—		214,355		—		—			214,355			36.2	%
Foreign Debt	—		47,728		—		—			47,728			8.1	%
State and Local Government	—		1,775		—		—			1,775			0.3	%
Other – Asset Backed	—		3,470		—		—			3,470			0.6	%
Subtotal – Fixed Income	—		324,511		—		—			324,511			54.8	%
Infrastructure	—		—		1,490		—			1,490			0.3	%
Real Estate	—		—		28,088		—			28,088			4.7	%
Alternative Investments	—		—		45,130		—			45,130			7.6	%
Securities Lending	—		26,178		—		—			26,178			4.4	%
Securities Lending Collateral (a)	—		—		—		(26,386		)	(26,386		)	(4.5	)%
Cash and Cash Equivalents	—		6,345		—		—			6,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,185			1,185			0.2	%
Total	$	136,403	$	405,827	$	74,708	$	(25,201	)	$	591,737		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,064	$	—	$	—	$	—		$	59,064		11.9	%
International	50,390		—		—		—			50,390			10.1	%
Options	—		1,414		—		—			1,414			0.3	%
Real Estate Investment Trusts	5,448		—		—		—			5,448			1.1	%
Common Collective Trust – Global	—		37,834		—		—			37,834			7.6	%
Common Collective Trust – International	—		1,854		—		—			1,854			0.4	%
Subtotal – Equities	114,902		41,102		—		—			156,004			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,030		—		—			3,030			0.6	%
United States Government and Agency Securities	—		45,139		—		—			45,139			9.0	%
Corporate Debt	—		180,566		—		—			180,566			36.2	%
Foreign Debt	—		40,205		—		—			40,205			8.1	%
State and Local Government	—		1,496		—		—			1,496			0.3	%
Other – Asset Backed	—		2,923		—		—			2,923			0.6	%
Subtotal – Fixed Income	—		273,359		—		—			273,359			54.8	%
Infrastructure	—		—		1,255		—			1,255			0.3	%
Real Estate	—		—		23,660		—			23,660			4.7	%
Alternative Investments	—		—		38,016		—			38,016			7.6	%
Securities Lending	—		22,051		—		—			22,051			4.4	%
Securities Lending Collateral (a)	—		—		—		(22,227		)	(22,227		)	(4.5	)%
Cash and Cash Equivalents	—		5,345		—		—			5,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		998			998			0.2	%
Total	$	114,902	$	341,857	$	62,931	$	(21,229	)	$	498,461		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	32,642	$	—	$	—	$	—		$	32,642		11.9	%
International	27,849		—		—		—			27,849			10.1	%
Options	—		781		—		—			781			0.3	%
Real Estate Investment Trusts	3,011		—		—		—			3,011			1.1	%
Common Collective Trust - Global	—		20,910		—		—			20,910			7.6	%
Common Collective Trust – International	—		1,025		—		—			1,025			0.4	%
Subtotal – Equities	63,502		22,716		—		—			86,218			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,675		—		—			1,675			0.6	%
United States Government and Agency Securities	—		24,947		—		—			24,947			9.0	%
Corporate Debt	—		99,792		—		—			99,792			36.2	%
Foreign Debt	—		22,220		—		—			22,220			8.1	%
State and Local Government	—		827		—		—			827			0.3	%
Other – Asset Backed	—		1,615		—		—			1,615			0.6	%
Subtotal – Fixed Income	—		151,076		—		—			151,076			54.8	%
Infrastructure	—		—		693		—			693			0.3	%
Real Estate	—		—		13,076		—			13,076			4.7	%
Alternative Investments	—		—		21,010		—			21,010			7.6	%
Securities Lending	—		12,187		—		—			12,187			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,284		)	(12,284		)	(4.5	)%
Cash and Cash Equivalents	—		2,954		—		—			2,954			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		552			552			0.2	%
Total	$	63,502	$	188,933	$	34,779	$	(11,732	)	$	275,482		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	34,382	$	—	$	—	$	—		$	34,382		11.9	%
International	29,332		—		—		—			29,332			10.1	%
Options	—		823		—		—			823			0.3	%
Real Estate Investment Trusts	3,171		—		—		—			3,171			1.1	%
Common Collective Trust – Global	—		22,023		—		—			22,023			7.6	%
Common Collective Trust – International	—		1,079		—		—			1,079			0.4	%
Subtotal – Equities	66,885		23,925		—		—			90,810			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,764		—		—			1,764			0.6	%
United States Government and Agency Securities	—		26,275		—		—			26,275			9.0	%
Corporate Debt	—		105,107		—		—			105,107			36.2	%
Foreign Debt	—		23,403		—		—			23,403			8.1	%
State and Local Government	—		871		—		—			871			0.3	%
Other – Asset Backed	—		1,701		—		—			1,701			0.6	%
Subtotal – Fixed Income	—		159,121		—		—			159,121			54.8	%
Infrastructure	—		—		730		—			730			0.3	%
Real Estate	—		—		13,772		—			13,772			4.7	%
Alternative Investments	—		—		22,129		—			22,129			7.6	%
Securities Lending	—		12,836		—		—			12,836			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,938		)	(12,938		)	(4.5	)%
Cash and Cash Equivalents	—		3,111		—		—			3,111			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		581			581			0.2	%
Total	$	66,885	$	198,993	$	36,631	$	(12,357	)	$	290,152		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy by Registrant Subsidiary for pension assets:

APCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	31,757		$	43,939	$	75,696
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		2,829			3,276		6,105
Relating to Assets Sold During the Period	—		9,831			1,616		11,447
Purchases and Sales	1,617		(13,930		)	154		(12,159		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,617	$	30,487		$	48,985	$	81,089

I&M	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	28,275		$	39,121	$	67,396
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		417			3,902		4,319
Relating to Assets Sold During the Period	—		1,448			1,924		3,372
Purchases and Sales	1,490		(2,052		)	183		(379		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,490	$	28,088		$	45,130	$	74,708

OPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	25,367		$	35,098	$	60,465
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		3,802			1,895		5,697
Relating to Assets Sold During the Period	—		13,219			934		14,153
Purchases and Sales	1,255		(18,728		)	89		(17,384		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,255	$	23,660		$	38,016	$	62,931

PSO	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	13,380		$	18,513	$	31,893
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		683			1,622		2,305
Relating to Assets Sold During the Period	—		2,371			799		3,170
Purchases and Sales	693		(3,358		)	76		(2,589		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	693	$	13,076		$	21,010	$	34,779

SWEPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	14,106		$	19,517	$	33,623
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		745			1,696		2,441
Relating to Assets Sold During the Period	—		2,590			836		3,426
Purchases and Sales	730		(3,669		)	80		(2,859		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	730	$	13,772		$	22,129	$	36,631

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	77,221	$	—	$	—	$	—	$	77,221	27.5	%
International	93,871		—		—		—		93,871		33.5	%
Options	—		2,712		—		—		2,712		1.0	%
Common Collective Trust – Global	—		4,905		—		—		4,905		1.8	%
Subtotal – Equities	171,092		7,617		—		—		178,709		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		17,188		—		—		17,188		6.1	%
United States Government and Agency Securities	—		11,775		—		—		11,775		4.2	%
Corporate Debt	—		20,787		—		—		20,787		7.4	%
Foreign Debt	—		3,532		—		—		3,532		1.3	%
State and Local Government	—		975		—		—		975		0.3	%
Other – Asset Backed	—		820		—		—		820		0.3	%
Subtotal – Fixed Income	—		55,077		—		—		55,077		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,709		—		—		1,709		0.6	%
United States Bonds	—		35,131		—		—		35,131		12.5	%
Subtotal – Trust Owned Life Insurance	—		36,840		—		—		36,840		13.1	%
Cash and Cash Equivalents	7,751		1,586		—		—		9,337		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		670		670		0.2	%
Total	$	178,843	$	101,120	$	—	$	670	$	280,633	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	55,695	$	—	$	—	$	—	$	55,695	27.5	%
International	67,705		—		—		—		67,705		33.5	%
Options	—		1,956		—		—		1,956		1.0	%
Common Collective Trust – Global	—		3,538		—		—		3,538		1.8	%
Subtotal – Equities	123,400		5,494		—		—		128,894		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,397		—		—		12,397		6.1	%
United States Government and Agency Securities	—		8,493		—		—		8,493		4.2	%
Corporate Debt	—		14,993		—		—		14,993		7.4	%
Foreign Debt	—		2,547		—		—		2,547		1.3	%
State and Local Government	—		704		—		—		704		0.3	%
Other – Asset Backed	—		592		—		—		592		0.3	%
Subtotal – Fixed Income	—		39,726		—		—		39,726		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,232		—		—		1,232		0.6	%
United States Bonds	—		25,339		—		—		25,339		12.5	%
Subtotal – Trust Owned Life Insurance	—		26,571		—		—		26,571		13.1	%
Cash and Cash Equivalents	5,590		1,144		—		—		6,734		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		483		483		0.2	%
Total	$	128,990	$	72,935	$	—	$	483	$	202,408	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	56,743	$	—	$	—	$	—	$	56,743	27.5	%
International	68,977		—		—		—		68,977		33.5	%
Options	—		1,993		—		—		1,993		1.0	%
Common Collective Trust – Global	—		3,604		—		—		3,604		1.8	%
Subtotal – Equities	125,720		5,597		—		—		131,317		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,630		—		—		12,630		6.1	%
United States Government and Agency Securities	—		8,653		—		—		8,653		4.2	%
Corporate Debt	—		15,274		—		—		15,274		7.4	%
Foreign Debt	—		2,595		—		—		2,595		1.3	%
State and Local Government	—		717		—		—		717		0.3	%
Other – Asset Backed	—		603		—		—		603		0.3	%
Subtotal – Fixed Income	—		40,472		—		—		40,472		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,256		—		—		1,256		0.6	%
United States Bonds	—		25,815		—		—		25,815		12.5	%
Subtotal – Trust Owned Life Insurance	—		27,071		—		—		27,071		13.1	%
Cash and Cash Equivalents	5,695		1,165		—		—		6,860		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		492		492		0.2	%
Total	$	131,415	$	74,305	$	—	$	492	$	206,212	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,425	$	—	$	—	$	—	$	26,425	27.5	%
International	32,126		—		—		—		32,126		33.5	%
Options	—		928		—		—		928		1.0	%
Common Collective Trust – Global	—		1,679		—		—		1,679		1.8	%
Subtotal – Equities	58,551		2,607		—		—		61,158		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		5,882		—		—		5,882		6.1	%
United States Government and Agency Securities	—		4,030		—		—		4,030		4.2	%
Corporate Debt	—		7,114		—		—		7,114		7.4	%
Foreign Debt	—		1,209		—		—		1,209		1.3	%
State and Local Government	—		334		—		—		334		0.3	%
Other – Asset Backed	—		281		—		—		281		0.3	%
Subtotal – Fixed Income	—		18,850		—		—		18,850		19.6	%
Trust Owned Life Insurance:
International Equities	—		585		—		—		585		0.6	%
United States Bonds	—		12,023		—		—		12,023		12.5	%
Subtotal – Trust Owned Life Insurance	—		12,608		—		—		12,608		13.1	%
Cash and Cash Equivalents	2,653		543		—		—		3,196		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		229		229		0.2	%
Total	$	61,204	$	34,608	$	—	$	229	$	96,041	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	29,286	$	—	$	—	$	—	$	29,286	27.5	%
International	35,601		—		—		—		35,601		33.5	%
Options	—		1,029		—		—		1,029		1.0	%
Common Collective Trust – Global	—		1,860		—		—		1,860		1.8	%
Subtotal – Equities	64,887		2,889		—		—		67,776		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		6,519		—		—		6,519		6.1	%
United States Government and Agency Securities	—		4,466		—		—		4,466		4.2	%
Corporate Debt	—		7,884		—		—		7,884		7.4	%
Foreign Debt	—		1,339		—		—		1,339		1.3	%
State and Local Government	—		370		—		—		370		0.3	%
Other – Asset Backed	—		311		—		—		311		0.3	%
Subtotal – Fixed Income	—		20,889		—		—		20,889		19.6	%
Trust Owned Life Insurance:
International Equities	—		648		—		—		648		0.6	%
United States Bonds	—		13,324		—		—		13,324		12.5	%
Subtotal – Trust Owned Life Insurance	—		13,972		—		—		13,972		13.1	%
Cash and Cash Equivalents	2,940		601		—		—		3,541		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		254		254		0.2	%
Total	$	67,827	$	38,351	$	—	$	254	$	106,432	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	145,515	$	—	$	—	$	—		$	145,515		23.2	%
International	68,591		—		—		—			68,591			10.9	%
Real Estate Investment Trusts	7,718		—		—		—			7,718			1.2	%
Common Collective Trust – International	—		1,302		—		—			1,302			0.2	%
Subtotal – Equities	221,824		1,302		—		—			223,126			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,456		—		—			3,456			0.5	%
United States Government and Agency Securities	—		51,556		—		—			51,556			8.2	%
Corporate Debt	—		213,280		—		—			213,280			34.0	%
Foreign Debt	—		45,818		—		—			45,818			7.3	%
State and Local Government	—		3,730		—		—			3,730			0.6	%
Other – Asset Backed	—		4,437		—		—			4,437			0.7	%
Subtotal – Fixed Income	—		322,277		—		—			322,277			51.3	%
Real Estate	—		—		31,757		—			31,757			5.0	%
Alternative Investments	—		—		43,939		—			43,939			7.0	%
Securities Lending	—		4,689		—		—			4,689			0.8	%
Securities Lending Collateral (a)	—		—		—		(6,024		)	(6,024		)	(0.9	)%
Cash and Cash Equivalents	—		6,476		—		—			6,476			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,755			1,755			0.3	%
Total	$	221,824	$	334,744	$	75,696	$	(4,269	)	$	627,995		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	129,561	$	—	$	—	$	—		$	129,561		23.2	%
International	61,071		—		—		—			61,071			10.9	%
Real Estate Investment Trusts	6,872		—		—		—			6,872			1.2	%
Common Collective Trust – International	—		1,159		—		—			1,159			0.2	%
Subtotal – Equities	197,504		1,159		—		—			198,663			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,077		—		—			3,077			0.5	%
United States Government and Agency Securities	—		45,904		—		—			45,904			8.2	%
Corporate Debt	—		189,896		—		—			189,896			34.0	%
Foreign Debt	—		40,794		—		—			40,794			7.3	%
State and Local Government	—		3,321		—		—			3,321			0.6	%
Other – Asset Backed	—		3,951		—		—			3,951			0.7	%
Subtotal – Fixed Income	—		286,943		—		—			286,943			51.3	%
Real Estate	—		—		28,275		—			28,275			5.0	%
Alternative Investments	—		—		39,121		—			39,121			7.0	%
Securities Lending	—		4,175		—		—			4,175			0.8	%
Securities Lending Collateral (a)	—		—		—		(5,363		)	(5,363		)	(0.9	)%
Cash and Cash Equivalents	—		5,766		—		—			5,766			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,563			1,563			0.3	%
Total	$	197,504	$	298,043	$	67,396	$	(3,800	)	$	559,143		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	116,233	$	—	$	—	$	—		$	116,233		23.2	%
International	54,790		—		—		—			54,790			10.9	%
Real Estate Investment Trusts	6,165		—		—		—			6,165			1.2	%
Common Collective Trust – International	—		1,040		—		—			1,040			0.2	%
Subtotal – Equities	177,188		1,040		—		—			178,228			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		2,761		—		—			2,761			0.5	%
United States Government and Agency Securities	—		41,183		—		—			41,183			8.2	%
Corporate Debt	—		170,365		—		—			170,365			34.0	%
Foreign Debt	—		36,599		—		—			36,599			7.3	%
State and Local Government	—		2,980		—		—			2,980			0.6	%
Other – Asset Backed	—		3,545		—		—			3,545			0.7	%
Subtotal – Fixed Income	—		257,433		—		—			257,433			51.3	%
Real Estate	—		—		25,367		—			25,367			5.0	%
Alternative Investments	—		—		35,098		—			35,098			7.0	%
Securities Lending	—		3,745		—		—			3,745			0.8	%
Securities Lending Collateral (a)	—		—		—		(4,812		)	(4,812		)	(0.9	)%
Cash and Cash Equivalents	—		5,173		—		—			5,173			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,402			1,402			0.3	%
Total	$	177,188	$	267,391	$	60,465	$	(3,410	)	$	501,634		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	61,309	$	—	$	—	$	—		$	61,309		23.2	%
International	28,900		—		—		—			28,900			10.9	%
Real Estate Investment Trusts	3,252		—		—		—			3,252			1.2	%
Common Collective Trust – International	—		548		—		—			548			0.2	%
Subtotal – Equities	93,461		548		—		—			94,009			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,456		—		—			1,456			0.5	%
United States Government and Agency Securities	—		21,723		—		—			21,723			8.2	%
Corporate Debt	—		89,863		—		—			89,863			34.0	%
Foreign Debt	—		19,305		—		—			19,305			7.3	%
State and Local Government	—		1,572		—		—			1,572			0.6	%
Other – Asset Backed	—		1,870		—		—			1,870			0.7	%
Subtotal – Fixed Income	—		135,789		—		—			135,789			51.3	%
Real Estate	—		—		13,380		—			13,380			5.0	%
Alternative Investments	—		—		18,513		—			18,513			7.0	%
Securities Lending	—		1,976		—		—			1,976			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,538		)	(2,538		)	(0.9	)%
Cash and Cash Equivalents	—		2,729		—		—			2,729			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		739			739			0.3	%
Total	$	93,461	$	141,042	$	31,893	$	(1,799	)	$	264,597		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	64,634	$	—	$	—	$	—		$	64,634		23.2	%
International	30,467		—		—		—			30,467			10.9	%
Real Estate Investment Trusts	3,428		—		—		—			3,428			1.2	%
Common Collective Trust – International	—		578		—		—			578			0.2	%
Subtotal – Equities	98,529		578		—		—			99,107			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,535		—		—			1,535			0.5	%
United States Government and Agency Securities	—		22,901		—		—			22,901			8.2	%
Corporate Debt	—		94,736		—		—			94,736			34.0	%
Foreign Debt	—		20,352		—		—			20,352			7.3	%
State and Local Government	—		1,657		—		—			1,657			0.6	%
Other – Asset Backed	—		1,971		—		—			1,971			0.7	%
Subtotal – Fixed Income	—		143,152		—		—			143,152			51.3	%
Real Estate	—		—		14,106		—			14,106			5.0	%
Alternative Investments	—		—		19,517		—			19,517			7.0	%
Securities Lending	—		2,083		—		—			2,083			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,676		)	(2,676		)	(0.9	)%
Cash and Cash Equivalents	—		2,877		—		—			2,877			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		780			780			0.3	%
Total	$	98,529	$	148,690	$	33,623	$	(1,896	)	$	278,946		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for pension assets by Registrant Subsidiary:

APCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	29,063		$	25,888	$	54,951
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,861			1,932		5,793
Relating to Assets Sold During the Period	—			1,949		1,949
Purchases and Sales	(1,167		)	14,170		13,003
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	31,757		$	43,939	$	75,696

I&M	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	25,811		$	22,992	$	48,803
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,531			1,727		5,258
Relating to Assets Sold During the Period	—			1,741		1,741
Purchases and Sales	(1,067		)	12,661		11,594
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	28,275		$	39,121	$	67,396

OPCo	Real Estate			Alternative Investments			Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	47,464		$	42,279		$	89,743
Transfer of OPCo Generation Plan Assets	(26,218		)	(36,275		)	(62,493		)
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	5,907			3,113			9,020
Relating to Assets Sold During the Period	—			3,142			3,142
Purchases and Sales	(1,786		)	22,839			21,053
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Balance as of December 31, 2013	$	25,367		$	35,098		$	60,465

PSO	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	12,382		$	11,030	$	23,412
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,430			801		2,231
Relating to Assets Sold During the Period	—			808		808
Purchases and Sales	(432		)	5,874		5,442
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	13,380		$	18,513	$	31,893

SWEPCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	13,078		$	11,649	$	24,727
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,474			841		2,315
Relating to Assets Sold During the Period	—			850		850
Purchases and Sales	(446		)	6,177		5,731
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	14,106		$	19,517	$	33,623

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	79,369	$	—	$	—	$	—	$	79,369	27.9	%
International	103,188		—		—		—		103,188		36.2	%
Common Collective Trust – Global	—		2,463		—		—		2,463		0.9	%
Subtotal – Equities	182,557		2,463		—		—		185,020		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		14,737		—		—		14,737		5.2	%
United States Government and Agency Securities	—		9,476		—		—		9,476		3.3	%
Corporate Debt	—		18,458		—		—		18,458		6.5	%
Foreign Debt	—		3,605		—		—		3,605		1.2	%
State and Local Government	—		776		—		—		776		0.3	%
Other – Asset Backed	—		1,362		—		—		1,362		0.5	%
Subtotal – Fixed Income	—		48,414		—		—		48,414		17.0	%
Trust Owned Life Insurance:
International Equities	—		2,219		—		—		2,219		0.8	%
United States Bonds	—		35,470		—		—		35,470		12.4	%
Subtotal – Trust Owned Life Insurance	—		37,689		—		—		37,689		13.2	%
Cash and Cash Equivalents	11,441		1,470		—		—		12,911		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		806		806		0.3	%
Total	$	193,998	$	90,036	$	—	$	806	$	284,840	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	57,460	$	—	$	—	$	—	$	57,460	27.9	%
International	74,705		—		—		—		74,705		36.2	%
Common Collective Trust – Global	—		1,783		—		—		1,783		0.9	%
Subtotal – Equities	132,165		1,783		—		—		133,948		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,669		—		—		10,669		5.2	%
United States Government and Agency Securities	—		6,860		—		—		6,860		3.3	%
Corporate Debt	—		13,363		—		—		13,363		6.5	%
Foreign Debt	—		2,610		—		—		2,610		1.2	%
State and Local Government	—		562		—		—		562		0.3	%
Other – Asset Backed	—		986		—		—		986		0.5	%
Subtotal – Fixed Income	—		35,050		—		—		35,050		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,607		—		—		1,607		0.8	%
United States Bonds	—		25,679		—		—		25,679		12.4	%
Subtotal – Trust Owned Life Insurance	—		27,286		—		—		27,286		13.2	%
Cash and Cash Equivalents	8,283		1,064		—		—		9,347		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		583		583		0.3	%
Total	$	140,448	$	65,183	$	—	$	583	$	206,214	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,069	$	—	$	—	$	—	$	59,069	27.9	%
International	76,799		—		—		—		76,799		36.2	%
Common Collective Trust – Global	—		1,833		—		—		1,833		0.9	%
Subtotal – Equities	135,868		1,833		—		—		137,701		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,968		—		—		10,968		5.2	%
United States Government and Agency Securities	—		7,053		—		—		7,053		3.3	%
Corporate Debt	—		13,738		—		—		13,738		6.5	%
Foreign Debt	—		2,683		—		—		2,683		1.2	%
State and Local Government	—		577		—		—		577		0.3	%
Other – Asset Backed	—		1,014		—		—		1,014		0.5	%
Subtotal – Fixed Income	—		36,033		—		—		36,033		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,652		—		—		1,652		0.8	%
United States Bonds	—		26,399		—		—		26,399		12.4	%
Subtotal – Trust Owned Life Insurance	—		28,051		—		—		28,051		13.2	%
Cash and Cash Equivalents	8,515		1,094		—		—		9,609		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		600		600		0.3	%
Total	$	144,383	$	67,011	$	—	$	600	$	211,994	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,842	$	—	$	—	$	—	$	26,842	27.9	%
International	34,898		—		—		—		34,898		36.2	%
Common Collective Trust – Global	—		833		—		—		833		0.9	%
Subtotal – Equities	61,740		833		—		—		62,573		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		4,984		—		—		4,984		5.2	%
United States Government and Agency Securities	—		3,205		—		—		3,205		3.3	%
Corporate Debt	—		6,243		—		—		6,243		6.5	%
Foreign Debt	—		1,219		—		—		1,219		1.2	%
State and Local Government	—		262		—		—		262		0.3	%
Other – Asset Backed	—		461		—		—		461		0.5	%
Subtotal – Fixed Income	—		16,374		—		—		16,374		17.0	%
Trust Owned Life Insurance:
International Equities	—		751		—		—		751		0.8	%
United States Bonds	—		11,996		—		—		11,996		12.4	%
Subtotal – Trust Owned Life Insurance	—		12,747		—		—		12,747		13.2	%
Cash and Cash Equivalents	3,869		497		—		—		4,366		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		273		273		0.3	%
Total	$	65,609	$	30,451	$	—	$	273	$	96,333	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	30,022	$	—	$	—	$	—	$	30,022	27.9	%
International	39,034		—		—		—		39,034		36.2	%
Common Collective Trust – Global	—		932		—		—		932		0.9	%
Subtotal – Equities	69,056		932		—		—		69,988		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		5,575		—		—		5,575		5.2	%
United States Government and Agency Securities	—		3,585		—		—		3,585		3.3	%
Corporate Debt	—		6,982		—		—		6,982		6.5	%
Foreign Debt	—		1,364		—		—		1,364		1.2	%
State and Local Government	—		294		—		—		294		0.3	%
Other – Asset Backed	—		515		—		—		515		0.5	%
Subtotal – Fixed Income	—		18,315		—		—		18,315		17.0	%
Trust Owned Life Insurance:
International Equities	—		840		—		—		840		0.8	%
United States Bonds	—		13,418		—		—		13,418		12.4	%
Subtotal – Trust Owned Life Insurance	—		14,258		—		—		14,258		13.2	%
Cash and Cash Equivalents	4,328		556		—		—		4,884		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		305		305		0.3	%
Total	$	73,384	$	34,061	$	—	$	305	$	107,750	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Determination of Pension Expense

The determination of pension expense or income is based on a market-related valuation of assets which reduces year-to-year volatility.  This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur.  Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

The accumulated benefit obligation for the pension plans is as follows:

Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	688,632	$	598,190	$	512,467	$	270,059	$	281,210
Nonqualified Pension Plans	464		470		69		2,750		1,749
Total as of December 31, 2014	$	689,096	$	598,660	$	512,536	$	272,809	$	282,959
Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	653,968	$	560,443	$	512,798	$	248,472	$	256,083
Nonqualified Pension Plans	200		326		6		1,387		1,115
Total as of December 31, 2013	$	654,168	$	560,769	$	512,804	$	249,859	$	257,198

For the underfunded pension plans that had an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of these plans as of December 31, 2014 and 2013 were as follows:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	702,805		$	617,948		$	526,250		$	2,770		$	1,790
Accumulated Benefit Obligation	$	689,096		$	598,660		$	512,536		$	2,750		$	1,749
Fair Value of Plan Assets	642,289			591,737			498,461			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2014	$	(46,807	)	$	(6,923	)	$	(14,075	)	$	(2,750	)	$	(1,749	)
	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	663,231		$	574,699		$	523,643		$	1,394		$	1,124
Accumulated Benefit Obligation	$	654,168		$	560,769		$	512,804		$	1,387		$	1,115
Fair Value of Plan Assets	627,995			559,143			501,634			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2013	$	(26,173	)	$	(1,626	)	$	(11,170	)	$	(1,387	)	$	(1,115	)

Estimated Future Benefit Payments and Contributions

The estimated pension benefit payments and contributions to the trust are at least the minimum amount required by the Employee Retirement Income Security Act plus payment of unfunded nonqualified benefits.  For the qualified pension plan, additional discretionary contributions may also be made to maintain the funded status of the plan.   For OPEB plans, expected payments include the payment of unfunded benefits.  The following table provides the estimated contributions and payments by Registrant Subsidiary for 2015:

Company	Pension Plans		Other Postretirement Benefit Plans
	(in thousands)
APCo	$	11,631	$	2,884
I&M	12,492		—
OPCo	7,847		—
PSO	6,656		—
SWEPCo	7,840		—

The tables below reflect the total benefits expected to be paid from the plan or from the Registrant Subsidiaries' assets.  The payments include the participants’ contributions to the plan for their share of the cost.  Effective for employees hired after December 2013, retiree medical coverage will not be provided.  Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results.  The estimated payments for the pension benefits and OPEB are as follows:

Pension Plans	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	42,859	$	33,114	$	36,277	$	18,950	$	18,872
2016	43,091		33,813		36,174		19,626		18,747
2017	43,484		35,748		35,571		20,175		20,407
2018	45,122		36,948		35,822		21,118		21,019
2019	45,488		38,727		36,179		21,732		22,059
Years 2020 to 2024, in Total	236,107		209,813		176,022		109,800		118,909

Other Postretirement Benefit Plans: Benefit Payments	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	24,828	$	15,088	$	16,379	$	6,989	$	7,401
2016	24,603		15,363		16,289		7,067		7,504
2017	24,468		15,484		16,088		7,074		7,674
2018	24,820		15,637		16,122		7,132		7,840
2019	24,290		15,804		16,079		7,278		7,885
Years 2020 to 2024, in Total	121,401		84,026		80,066		38,852		43,503

Other Postretirement Benefit Plans: Medicare Subsidy Receipts	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	232	$	—	$	—	$	—	$	—
2016	236		—		—		—		—
2017	234		—		—		—		—
2018	231		—		—		—		—
2019	230		—		—		—		—
Years 2020 to 2024, in Total	1,080		—		—		—		—

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (credit) by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

APCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	7,036		$	6,171		$	7,565		$	1,448		$	2,566		$	5,387
Interest Cost	29,624			27,662			30,211			12,788			13,454			18,462
Expected Return on Plan Assets	(33,927		)	(37,041		)	(41,944		)	(18,533		)	(18,147		)	(16,753		)
Amortization of Transition Obligation	—			—			—			—			—			780
Amortization of Prior Service Cost (Credit)	197			198			475			(10,050		)	(10,050		)	(2,862		)
Amortization of Net Actuarial Loss	16,593			25,025			20,339			4,582			12,249			10,526
Net Periodic Benefit Cost (Credit)	19,523			22,015			16,646			(9,765		)	72			15,540
Capitalized Portion	(6,819		)	(7,529		)	(6,525		)	3,411			(25		)	(6,092		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	12,704		$	14,486		$	10,121		$	(6,354	)	$	47		$	9,448

I&M	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	10,068		$	8,736		$	9,908		$	1,947		$	3,219		$	6,621
Interest Cost	26,293			24,100			26,245			7,638			8,221			12,785
Expected Return on Plan Assets	(30,993		)	(32,826		)	(37,566		)	(13,454		)	(13,183		)	(12,847		)
Amortization of Transition Obligation	—			—			—			—			—			132
Amortization of Prior Service Cost (Credit)	195			195			407			(9,421		)	(9,421		)	(2,383		)
Amortization of Net Actuarial Loss	14,585			21,688			17,569			2,368			7,526			7,050
Net Periodic Benefit Cost (Credit)	20,148			21,893			16,563			(10,922		)	(3,638		)	11,358
Capitalized Portion	(4,638		)	(4,576		)	(3,114		)	2,514			760			(2,135		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	15,510		$	17,317		$	13,449		$	(8,408	)	$	(2,878	)	$	9,223

OPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,140		$	5,285		$	11,003		$	1,026		$	2,882		$	8,748
Interest Cost	22,105			21,939			45,194			7,601			9,494			24,189
Expected Return on Plan Assets	(26,427		)	(29,919		)	(68,401		)	(13,519		)	(13,468		)	(22,555		)
Amortization of Transition Obligation	—			—			—			—			—			104
Amortization of Prior Service Cost (Credit)	157			157			743			(6,923		)	(6,962		)	(3,873		)
Amortization of Net Actuarial Loss	12,422			19,833			30,439			2,379			8,633			13,669
Net Periodic Benefit Cost (Credit)	13,397			17,295			18,978			(9,436		)	579			20,282
Capitalized Portion	(5,479		)	(6,192		)	(7,060		)	3,859			(207		)	(7,545		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,918		$	11,103		$	11,918		$	(5,577	)	$	372		$	12,737

PSO	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,207		$	5,562		$	5,951		$	839		$	1,372		$	2,836
Interest Cost	12,057			10,993			12,301			3,574			3,793			5,797
Expected Return on Plan Assets	(14,604		)	(15,675		)	(18,015		)	(6,300		)	(6,089		)	(5,922		)
Amortization of Prior Service Cost (Credit)	296			297			(948		)	(4,290		)	(4,289		)	(1,079		)
Amortization of Net Actuarial Loss	6,753			9,845			8,206			1,109			3,476			3,189
Net Periodic Benefit Cost (Credit)	9,709			11,022			7,495			(5,068		)	(1,737		)	4,821
Capitalized Portion	(3,320		)	(3,384		)	(2,533		)	1,733			533			(1,629		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	6,389		$	7,638		$	4,962		$	(3,335	)	$	(1,204	)	$	3,192

SWEPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	6,618		$	7,011		$	7,099		$	1,012		$	1,693		$	3,324
Interest Cost	12,651			11,454			12,537			3,992			4,301			6,673
Expected Return on Plan Assets	(15,427		)	(16,509		)	(18,866		)	(7,016		)	(6,881		)	(6,795		)
Amortization of Prior Service Cost (Credit)	349			349			(793		)	(5,156		)	(5,156		)	(933		)
Amortization of Net Actuarial Loss	7,046			10,214			8,330			1,235			3,928			3,659
Net Periodic Benefit Cost (Credit)	11,237			12,519			8,307			(5,933		)	(2,115		)	5,928
Capitalized Portion	(3,391		)	(3,518		)	(2,924		)	1,791			594			(2,087		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,846		$	9,001		$	5,383		$	(4,142	)	$	(1,521	)	$	3,841

Estimated amounts expected to be amortized to net periodic benefit costs (credits) and the impact on each Registrant Subsidiaries’ balance sheet during 2015 are shown in the following tables:

	APCo			I&M			OPCo			PSO			SWEPCo
Pension Plans – Components	(in thousands)
Net Actuarial Loss	$	14,457		$	12,713		$	10,823		$	5,891		$	6,146
Prior Service Cost	180			181			140			252			308
Total Estimated 2015 Amortization	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
Pension Plans – Expected to be Recorded as
Regulatory Asset	$	14,560		$	12,114		$	10,963		$	6,143		$	6,454
Deferred Income Taxes	27			273			—			—			—
Net of Tax AOCI	50			507			—			—			—
Total	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
	APCo			I&M			OPCo			PSO			SWEPCo
Other Postretirement Benefit Plans – Components	(in thousands)
Net Actuarial Loss	$	3,353		$	1,814		$	1,848		$	861		$	954
Prior Service Credit	(10,050		)	(9,421		)	(6,922		)	(4,290		)	(5,156		)
Total Estimated 2015 Amortization	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)
Other Postretirement Benefit Plans – Expected to be Recorded as
Regulatory Asset	$	(3,693	)	$	(6,934	)	$	(5,074	)	$	(3,429	)	$	(2,687	)
Deferred Income Taxes	(1,051		)	(236		)	—			—			(530		)
Net of Tax AOCI	(1,953		)	(437		)	—			—			(985		)
Total	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)

American Electric Power System Retirement Savings Plan

The Registrant Subsidiaries participate in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees who are not covered by a retirement savings plan of the United Mine Workers of America (UMWA).  This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for company matching contributions.  The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions.

The following table provides the cost for matching contributions to the retirement savings plans by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Company	2014		2013		2012
	(in thousands)
APCo	$	7,280	$	7,366	$	7,579
I&M	10,461		10,010		9,706
OPCo	5,207		6,502		10,798
PSO	4,026		3,784		3,732
SWEPCo	5,272		4,970		4,890

UMWA Benefits

APCo provides UMWA pension, health and welfare benefits for certain unionized mining retirees and their survivors who meet eligibility requirements.  UMWA trustees make final interpretive determinations with regard to all benefits.  The pension benefits are administered by UMWA trustees.  APCo administers the health and welfare benefits and pays them from its general assets.

The UMWA pension benefits are administered through a multiemployer plan that is different from single-employer plans as an employer’s contributions may be used to provide benefits to employees of other participating employers.  Required contributions not made by an employer may result in other employers bearing the unfunded plan obligations, while a withdrawing employer may be subject to a withdrawal liability.  UMWA pension benefits are provided through the United Mine Workers of America 1974 Pension Plan (Employer Identification Number: 52-1050282, Plan Number 002), which under the Pension Protection Act of 2006 (PPA) was in Critical Status for the plan year ending June 30, 2014 and in Seriously Endangered Status for the plan year ending June 30, 2013, without utilization of extended amortization provisions.  The Plan adopted a funding improvement plan in May 2012, as required under the PPA.

Contributions to the UMWA pension plan in 2014, 2013 and 2012 were immaterial and represent less than 5% of the total contributions in the plan’s latest annual report for the years ended June 30, 2014, 2013 and 2012.  UMWA pension contributions included a surcharge of 5% beginning December 2014 and are scheduled to include a surcharge of 10% beginning July 2015.  There are no minimum contributions for future years.

Southwestern Electric Power Co [Member]

Benefit Plans

BENEFIT PLANS

For a discussion of investment strategy, investment limitations, target asset allocations and the classification of investments within the fair value hierarchy, see “Investments Held in Trust for Future Liabilities” and “Fair Value Measurements of Assets and Liabilities” sections of Note 1.

The Registrant Subsidiaries participate in an AEP sponsored qualified pension plan and two unfunded nonqualified pension plans.  Substantially all employees are covered by the qualified plan or both the qualified and a nonqualified pension plan.  The Registrant Subsidiaries also participate in OPEB plans sponsored by AEP to provide health and life insurance benefits for retired employees.

Due to the Registrant Subsidiaries’ participation in AEP’s benefits plans, the assumptions used by the actuary and the accounting for the plans by each subsidiary are the same.  This section details the assumptions that apply to all Registrant Subsidiaries and the rate of compensation increase for each subsidiary.

The Registrant Subsidiaries recognize the funded status associated with defined benefit pension and OPEB plans in their balance sheets.  Disclosures about the plans are required by the “Compensation – Retirement Benefits” accounting guidance.  The Registrant Subsidiaries recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of other comprehensive income, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost.  The Registrant Subsidiaries record a regulatory asset instead of other comprehensive income for qualifying benefit costs of regulated operations that for ratemaking purposes are deferred for future recovery.  The cumulative funded status adjustment is equal to the remaining unrecognized deferrals for unamortized actuarial losses or gains, prior service costs and transition obligations, such that remaining deferred costs result in an AOCI equity reduction or regulatory asset and deferred gains result in an AOCI equity addition or regulatory liability.

Actuarial Assumptions for Benefit Obligations

The weighted-average assumptions as of December 31 of each year used in the measurement of the Registrant Subsidiaries’ benefit obligations are shown in the following tables:

	Pension Plans				Other Postretirement Benefit Plans
Assumption	2014		2013		2014		2013
Discount Rate	4.00	%	4.70	%	4.00	%	4.70	%

	Pension Plans
Assumption – Rate of Compensation Increase (a)	2014		2013
APCo	4.45	%	4.60	%
I&M	4.80	%	4.90	%
OPCo	4.80	%	5.00	%
PSO	4.80	%	4.90	%
SWEPCo	4.80	%	4.85	%

(a) Rates are for base pay only.  In addition, an amount is added to reflect target incentive compensation for exempt employees and overtime and incentive pay for nonexempt employees.

A duration-based method is used to determine the discount rate for the plans.  A hypothetical portfolio of high quality corporate bonds is constructed with cash flows matching the benefit plan liability.  The composite yield on the hypothetical bond portfolio is used as the discount rate for the plan.  The discount rate is the same for each Registrant Subsidiary.

For 2014, the rate of compensation increase assumed varies with the age of the employee, ranging from 3.5% per year to 12% per year, with the average increase shown in the table above.  The compensation increase rates reflect variations in each Registrant Subsidiaries' population participating in the pension plan.

Updated mortality assumptions based on mortality tables issued by the Society of Actuaries in October 2014 were used for the December 31, 2014 benefit obligation measurements. These updates resulted in approximate benefit obligation increases by Registrant Subsidiary as shown in the following table:

	Pension Plans		Other Postretirement Benefit Plans
Increase in Benefit Obligation	(in thousands)
APCo	$	17,946	$	2,271
I&M	15,117		1,644
OPCo	14,525		310
PSO	6,811		555
SWEPCo	6,445		775

Actuarial Assumptions for Net Periodic Benefit Costs

The weighted-average assumptions as of January 1 of each year used in the measurement of each Registrant Subsidiaries’ benefit costs are shown in the following tables:

	Pension Plans						Other Postretirement Benefit Plans
Assumptions	2014		2013		2012		2014		2013		2012
Discount Rate	4.70	%	3.95	%	4.55	%	4.70	%	3.95	%	4.75	%
Expected Return on Plan Assets	6.00	%	6.50	%	7.25	%	6.75	%	7.00	%	7.25	%

	Pension Plans
Assumption – Rate of Compensation Increase	2014		2013		2012
APCo	4.60	%	4.70	%	4.70	%
I&M	4.90	%	5.00	%	5.00	%
OPCo	5.00	%	5.00	%	5.00	%
PSO	4.90	%	4.90	%	4.90	%
SWEPCo	4.85	%	4.75	%	4.75	%

The expected return on plan assets was determined by evaluating historical returns, the current investment climate (yield on fixed income securities and other recent investment market indicators), rate of inflation and current prospects for economic growth.  The expected return on plan assets is the same for each Registrant Subsidiary.

The health care trend rate assumptions as of January 1 of each year used for OPEB plans measurement purposes are shown below:

Health Care Trend Rates	2014		2013
Initial	6.50	%	6.75	%
Ultimate	5.00	%	5.00	%
Year Ultimate Reached	2020		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the OPEB health care plans.  A 1% change in assumed health care cost trend rates would have the following effects:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Effect on Total Service and Interest Cost Components of Net Periodic Postretirement Health Care Benefit Cost:
1% Increase	$	902		$	343		$	308		$	158		$	179
1% Decrease	(691		)	(264		)	(237		)	(121		)	(138		)
Effect on the Health Care Component of the Accumulated Postretirement Benefit Obligation:
1% Increase	$	17,260		$	7,117		$	7,251		$	3,377		$	3,742
1% Decrease	(13,614		)	(5,630		)	(5,736		)	(2,671		)	(2,960		)

Significant Concentrations of Risk within Plan Assets

In addition to establishing the target asset allocation of plan assets, the investment policy also places restrictions on securities to limit significant concentrations within plan assets.  The investment policy establishes guidelines that govern maximum market exposure, security restrictions, prohibited asset classes, prohibited types of transactions, minimum credit quality, average portfolio credit quality, portfolio duration and concentration limits.  The guidelines were established to mitigate the risk of loss due to significant concentrations in any investment.  Management monitors the plans to control security diversification and ensure compliance with the investment policy.  As of December 31, 2014, the assets were invested in compliance with all investment limits.  See “Investments Held in Trust for Future Liabilities” section of Note 1 for limit details.

Benefit Plan Obligations, Plan Assets and Funded Status as of December 31, 2014 and 2013

The following tables provide a reconciliation of the changes in the plans’ benefit obligations, fair value of plan assets and funded status as of December 31.  The benefit obligation for the defined benefit pension and OPEB plans are the projected benefit obligation and the accumulated benefit obligation, respectively.

APCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	663,231		$	718,460		$	279,884		$	348,990
Service Cost	7,036			6,171			1,448			2,566
Interest Cost	29,624			27,662			12,788			13,454
Actuarial (Gain) Loss	41,671			(45,619		)	(8,975		)	(66,056		)
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Participant Contributions	—			—			7,196			6,600
Medicare Subsidy	—			—			1,391			1,550
Benefit Obligation as of December 31,	$	702,805		$	663,231		$	267,148		$	279,884
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	627,995		$	621,570		$	284,840		$	267,758
Actual Gain on Plan Assets	44,052			49,832			11,836			34,289
Company Contributions	8,999			36			3,345			3,413
Participant Contributions	—			—			7,196			6,600
Benefit Payments	(38,757		)	(43,443		)	(26,584		)	(27,220		)
Fair Value of Plan Assets as of December 31,	$	642,289		$	627,995		$	280,633		$	284,840
Funded (Underfunded) Status as of December 31,	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

I&M	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	574,699		$	618,973		$	166,497		$	218,553
Service Cost	10,068			8,736			1,947			3,219
Interest Cost	26,293			24,100			7,638			8,221
Actuarial (Gain) Loss	38,466			(41,631		)	(4,925		)	(52,800		)
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Participant Contributions	—			—			5,168			4,745
Medicare Subsidy	—			—			1,064			1,172
Benefit Obligation as of December 31,	$	617,948		$	574,699		$	161,659		$	166,497
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	559,143		$	552,026		$	206,214		$	194,128
Actual Gain on Plan Assets	55,295			42,584			6,664			23,844
Company Contributions	8,877			12			92			110
Participant Contributions	—			—			5,168			4,745
Benefit Payments	(31,578		)	(35,479		)	(15,730		)	(16,613		)
Fair Value of Plan Assets as of December 31,	$	591,737		$	559,143		$	202,408		$	206,214
Funded (Underfunded) Status as of December 31,	$	(26,211	)	$	(15,556	)	$	40,749		$	39,717

OPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	523,643		$	1,068,186		$	171,164		$	466,290
Transfer of OPCo Generation Benefit Obligation	—			(499,725		)	—			(250,843		)
Service Cost	5,140			5,285			1,026			2,882
Interest Cost	22,105			21,939			7,601			9,494
Actuarial (Gain) Loss	6,761			(34,373		)	(4,286		)	(44,149		)
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Participant Contributions	—			—			5,564			5,199
Medicare Subsidy	—			—			981			1,135
Benefit Obligation as of December 31,	$	526,250		$	523,643		$	164,697		$	171,164
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	501,634		$	1,015,115		$	211,994		$	366,301
Transfer of OPCo Generation Plan Assets	—			(506,076		)	—			(170,650		)
Actual Gain on Plan Assets	21,679			30,264			6,007			29,576
Company Contributions	6,547			—			—			412
Participant Contributions	—			—			5,564			5,199
Benefit Payments	(31,399		)	(37,669		)	(17,353		)	(18,844		)
Fair Value of Plan Assets as of December 31,	$	498,461		$	501,634		$	206,212		$	211,994
Funded (Underfunded) Status as of December 31,	$	(27,789	)	$	(22,009	)	$	41,515		$	40,830

PSO	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	260,710		$	279,685		$	77,779		$	99,680
Service Cost	5,207			5,562			839			1,372
Interest Cost	12,057			10,993			3,574			3,793
Actuarial (Gain) Loss	25,708			(15,381		)	(952		)	(22,070		)
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Participant Contributions	—			—			2,304			2,229
Medicare Subsidy	—			—			467			516
Benefit Obligation as of December 31,	$	285,405		$	260,710		$	76,706		$	77,779
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	264,597		$	264,823		$	96,333		$	90,521
Actual Gain on Plan Assets	24,607			19,892			4,709			11,324
Company Contributions	4,555			31			—			—
Participant Contributions	—			—			2,304			2,229
Benefit Payments	(18,277		)	(20,149		)	(7,305		)	(7,741		)
Fair Value of Plan Assets as of December 31,	$	275,482		$	264,597		$	96,041		$	96,333
Funded (Underfunded) Status as of December 31,	$	(9,923	)	$	3,887		$	19,335		$	18,554

SWEPCo	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Change in Benefit Obligation	(in thousands)
Benefit Obligation as of January 1,	$	270,564		$	285,560		$	86,997		$	109,948
Service Cost	6,618			7,011			1,012			1,693
Interest Cost	12,651			11,454			3,992			4,301
Actuarial (Gain) Loss	27,511			(12,818		)	(2,296		)	(23,852		)
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Participant Contributions	—			—			2,532			2,410
Medicare Subsidy	—			—			499			554
Benefit Obligation as of December 31,	$	298,166		$	270,564		$	85,005		$	86,997
Change in Fair Value of Plan Assets
Fair Value of Plan Assets as of January 1,	$	278,946		$	279,699		$	107,750		$	99,846
Actual Gain on Plan Assets	26,482			19,823			3,881			13,551
Company Contributions	3,902			67			—			—
Participant Contributions	—			—			2,532			2,410
Benefit Payments	(19,178		)	(20,643		)	(7,731		)	(8,057		)
Fair Value of Plan Assets as of December 31,	$	290,152		$	278,946		$	106,432		$	107,750
Funded (Underfunded) Status as of December 31,	$	(8,014	)	$	8,382		$	21,427		$	20,753

Amounts Recognized on the Registrant Subsidiaries' Balance Sheets as of December 31, 2014 and 2013

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
APCo	2014			2013			2014			2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	56,498		$	27,945
Other Current Liabilities – Accrued Short-term Benefit Liability	(39		)	(34		)	(2,884		)	(2,970		)
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(60,477		)	(35,202		)	(40,129		)	(20,019		)
Funded (Underfunded) Status	$	(60,516	)	$	(35,236	)	$	13,485		$	4,956

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
I&M	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	40,749	$	39,590
Other Current Liabilities – Accrued Short-term Benefit Liability	(28		)	(43		)	—		—
Deferred Credits and Other Noncurrent Liabilities – Accrued Long-term Benefit Liability	(26,183		)	(15,513		)	—		127
Funded (Underfunded) Status	$	(26,211	)	$	(15,556	)	$	40,749	$	39,717

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
OPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	—		$	41,515	$	39,496
Other Current Liabilities – Accrued Short-term Benefit Liability	(1		)	(1		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(27,788		)	(22,008		)	—		1,334
Funded (Underfunded) Status	$	(27,789	)	$	(22,009	)	$	41,515	$	40,830

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
PSO	2014			2013			2014		2013
	(in thousands)
Employee Benefits and Pension Assets – Prepaid Benefit Costs	$	—		$	5,280		$	19,335	$	17,349
Other Current Liabilities – Accrued Short-term Benefit Liability	(190		)	(107		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(9,733		)	(1,286		)	—		1,205
Funded (Underfunded) Status	$	(9,923	)	$	3,887		$	19,335	$	18,554

	Pension Plans						Other Postretirement Benefit Plans
	December 31,
SWEPCo	2014			2013			2014		2013
	(in thousands)
Deferred Charges and Other Noncurrent Assets – Prepaid Benefit Costs	$	—		$	9,506		$	21,427	$	19,210
Other Current Liabilities – Accrued Short-term Benefit Liability	(82		)	(79		)	—		—
Employee Benefits and Pension Obligations – Accrued Long-term Benefit Liability	(7,932		)	(1,045		)	—		1,543
Funded (Underfunded) Status	$	(8,014	)	$	8,382		$	21,427	$	20,753

Amounts Included in AOCI and Regulatory Assets as of December 31, 2014 and 2013

APCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	235,000	$	220,047	$	65,841		$	72,732
Prior Service Cost (Credit)	523		720		(90,626		)	(100,676		)
Recorded as
Regulatory Assets	$	232,815	$	217,937	$	(20,330	)	$	(25,473	)
Deferred Income Taxes	948		991		(1,559		)	(865		)
Net of Tax AOCI	1,760		1,839		(2,896		)	(1,606		)

I&M	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	137,945	$	138,367	$	54,444		$	54,949
Prior Service Cost (Credit)	510		705		(85,117		)	(94,538		)
Recorded as
Regulatory Assets	$	134,121	$	134,560	$	(26,264	)	$	(34,428	)
Deferred Income Taxes	1,517		1,579		(1,543		)	(1,807		)
Net of Tax AOCI	2,817		2,933		(2,866		)	(3,354		)

OPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	226,755	$	227,668	$	30,651		$	29,804
Prior Service Cost (Credit)	393		550		(62,377		)	(69,300		)
Recorded as
Regulatory Assets	$	227,148	$	228,218	$	(31,726	)	$	(39,496	)

PSO	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	102,641	$	93,688	$	25,242		$	25,712
Prior Service Cost (Credit)	536		832		(38,771		)	(43,061		)
Recorded as
Regulatory Assets	$	103,177	$	94,520	$	(13,529	)	$	(17,349	)

SWEPCo	Pension Plans				Other Postretirement Benefit Plans
	December 31,
	2014		2013		2014			2013
Components	(in thousands)
Net Actuarial Loss	$	104,903	$	95,492	$	32,377		$	32,772
Prior Service Cost (Credit)	655		1,004		(46,826		)	(51,982		)
Recorded as
Regulatory Assets	$	105,558	$	96,496	$	(8,959	)	$	(11,836	)
Deferred Income Taxes	—		—		(1,921		)	(2,580		)
Net of Tax AOCI	—		—		(3,569		)	(4,794		)

Components of the change in amounts included in AOCI and Regulatory Assets by Registrant Subsidiary during the years ended December 31, 2014 and 2013 are as follows:

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Loss During the Year	$	31,546		$	14,163		$	11,509		$	15,706		$	16,457
Amortization of Actuarial Loss	(16,593		)	(14,585		)	(12,422		)	(6,753		)	(7,046		)
Amortization of Prior Service Cost	(197		)	(195		)	(157		)	(296		)	(349		)
Change for the Year Ended December 31, 2014	$	14,756		$	(617	)	$	(1,070	)	$	8,657		$	9,062

Pension Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(58,411	)	$	(51,388	)	$	(253,392	)	$	(19,599	)	$	(16,133	)
Amortization of Actuarial Loss	(25,025		)	(21,688		)	(19,833		)	(9,845		)	(10,214		)
Amortization of Prior Service Cost	(198		)	(195		)	(157		)	(297		)	(349		)
Change for the Year Ended December 31, 2013	$	(83,634	)	$	(73,271	)	$	(273,382	)	$	(29,741	)	$	(26,696	)

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial (Gain) Loss During the Year	$	(2,309	)	$	1,863		$	3,226		$	639		$	840
Amortization of Actuarial Loss	(4,582		)	(2,368		)	(2,379		)	(1,109		)	(1,235		)
Amortization of Prior Service Credit	10,050			9,421			6,923			4,290			5,156
Change for the Year Ended December 31, 2014	$	3,159		$	8,916		$	7,770		$	3,820		$	4,761

Other Postretirement Benefit Plans – Components	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Actuarial Gain During the Year	$	(82,192	)	$	(63,460	)	$	(111,922	)	$	(27,305	)	$	(30,523	)
Amortization of Actuarial Loss	(12,249		)	(7,526		)	(8,633		)	(3,476		)	(3,928		)
Amortization of Prior Service Credit	10,050			9,421			6,962			4,289			5,156
Change for the Year Ended December 31, 2013	$	(84,391	)	$	(61,565	)	$	(113,593	)	$	(26,492	)	$	(29,295	)

Pension and Other Postretirement Benefits Plans’ Assets

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	76,107	$	—	$	—	$	—		$	76,107		11.9	%
International	64,930		—		—		—			64,930			10.1	%
Options	—		1,822		—		—			1,822			0.3	%
Real Estate Investment Trusts	7,019		—		—		—			7,019			1.1	%
Common Collective Trust – Global	—		48,751		—		—			48,751			7.6	%
Common Collective Trust – International	—		2,390		—		—			2,390			0.4	%
Subtotal – Equities	148,056		52,963		—		—			201,019			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,904		—		—			3,904			0.6	%
United States Government and Agency Securities	—		58,164		—		—			58,164			9.0	%
Corporate Debt	—		232,667		—		—			232,667			36.2	%
Foreign Debt	—		51,806		—		—			51,806			8.1	%
State and Local Government	—		1,927		—		—			1,927			0.3	%
Other – Asset Backed	—		3,766		—		—			3,766			0.6	%
Subtotal – Fixed Income	—		352,234		—		—			352,234			54.8	%
Infrastructure	—		—		1,617		—			1,617			0.3	%
Real Estate	—		—		30,487		—			30,487			4.7	%
Alternative Investments	—		—		48,985		—			48,985			7.6	%
Securities Lending	—		28,414		—		—			28,414			4.4	%
Securities Lending Collateral (a)	—		—		—		(28,641		)	(28,641		)	(4.5	)%
Cash and Cash Equivalents	—		6,888		—		—			6,888			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,286			1,286			0.2	%
Total	$	148,056	$	440,499	$	81,089	$	(27,355	)	$	642,289		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	70,116	$	—	$	—	$	—		$	70,116		11.9	%
International	59,820		—		—		—			59,820			10.1	%
Options	—		1,678		—		—			1,678			0.3	%
Real Estate Investment Trusts	6,467		—		—		—			6,467			1.1	%
Common Collective Trust – Global	—		44,914		—		—			44,914			7.6	%
Common Collective Trust – International	—		2,201		—		—			2,201			0.4	%
Subtotal – Equities	136,403		48,793		—		—			185,196			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,597		—		—			3,597			0.6	%
United States Government and Agency Securities	—		53,586		—		—			53,586			9.0	%
Corporate Debt	—		214,355		—		—			214,355			36.2	%
Foreign Debt	—		47,728		—		—			47,728			8.1	%
State and Local Government	—		1,775		—		—			1,775			0.3	%
Other – Asset Backed	—		3,470		—		—			3,470			0.6	%
Subtotal – Fixed Income	—		324,511		—		—			324,511			54.8	%
Infrastructure	—		—		1,490		—			1,490			0.3	%
Real Estate	—		—		28,088		—			28,088			4.7	%
Alternative Investments	—		—		45,130		—			45,130			7.6	%
Securities Lending	—		26,178		—		—			26,178			4.4	%
Securities Lending Collateral (a)	—		—		—		(26,386		)	(26,386		)	(4.5	)%
Cash and Cash Equivalents	—		6,345		—		—			6,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,185			1,185			0.2	%
Total	$	136,403	$	405,827	$	74,708	$	(25,201	)	$	591,737		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,064	$	—	$	—	$	—		$	59,064		11.9	%
International	50,390		—		—		—			50,390			10.1	%
Options	—		1,414		—		—			1,414			0.3	%
Real Estate Investment Trusts	5,448		—		—		—			5,448			1.1	%
Common Collective Trust – Global	—		37,834		—		—			37,834			7.6	%
Common Collective Trust – International	—		1,854		—		—			1,854			0.4	%
Subtotal – Equities	114,902		41,102		—		—			156,004			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		3,030		—		—			3,030			0.6	%
United States Government and Agency Securities	—		45,139		—		—			45,139			9.0	%
Corporate Debt	—		180,566		—		—			180,566			36.2	%
Foreign Debt	—		40,205		—		—			40,205			8.1	%
State and Local Government	—		1,496		—		—			1,496			0.3	%
Other – Asset Backed	—		2,923		—		—			2,923			0.6	%
Subtotal – Fixed Income	—		273,359		—		—			273,359			54.8	%
Infrastructure	—		—		1,255		—			1,255			0.3	%
Real Estate	—		—		23,660		—			23,660			4.7	%
Alternative Investments	—		—		38,016		—			38,016			7.6	%
Securities Lending	—		22,051		—		—			22,051			4.4	%
Securities Lending Collateral (a)	—		—		—		(22,227		)	(22,227		)	(4.5	)%
Cash and Cash Equivalents	—		5,345		—		—			5,345			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		998			998			0.2	%
Total	$	114,902	$	341,857	$	62,931	$	(21,229	)	$	498,461		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	32,642	$	—	$	—	$	—		$	32,642		11.9	%
International	27,849		—		—		—			27,849			10.1	%
Options	—		781		—		—			781			0.3	%
Real Estate Investment Trusts	3,011		—		—		—			3,011			1.1	%
Common Collective Trust - Global	—		20,910		—		—			20,910			7.6	%
Common Collective Trust – International	—		1,025		—		—			1,025			0.4	%
Subtotal – Equities	63,502		22,716		—		—			86,218			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,675		—		—			1,675			0.6	%
United States Government and Agency Securities	—		24,947		—		—			24,947			9.0	%
Corporate Debt	—		99,792		—		—			99,792			36.2	%
Foreign Debt	—		22,220		—		—			22,220			8.1	%
State and Local Government	—		827		—		—			827			0.3	%
Other – Asset Backed	—		1,615		—		—			1,615			0.6	%
Subtotal – Fixed Income	—		151,076		—		—			151,076			54.8	%
Infrastructure	—		—		693		—			693			0.3	%
Real Estate	—		—		13,076		—			13,076			4.7	%
Alternative Investments	—		—		21,010		—			21,010			7.6	%
Securities Lending	—		12,187		—		—			12,187			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,284		)	(12,284		)	(4.5	)%
Cash and Cash Equivalents	—		2,954		—		—			2,954			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		552			552			0.2	%
Total	$	63,502	$	188,933	$	34,779	$	(11,732	)	$	275,482		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	34,382	$	—	$	—	$	—		$	34,382		11.9	%
International	29,332		—		—		—			29,332			10.1	%
Options	—		823		—		—			823			0.3	%
Real Estate Investment Trusts	3,171		—		—		—			3,171			1.1	%
Common Collective Trust – Global	—		22,023		—		—			22,023			7.6	%
Common Collective Trust – International	—		1,079		—		—			1,079			0.4	%
Subtotal – Equities	66,885		23,925		—		—			90,810			31.4	%
Fixed Income:
Common Collective Trust – Debt	—		1,764		—		—			1,764			0.6	%
United States Government and Agency Securities	—		26,275		—		—			26,275			9.0	%
Corporate Debt	—		105,107		—		—			105,107			36.2	%
Foreign Debt	—		23,403		—		—			23,403			8.1	%
State and Local Government	—		871		—		—			871			0.3	%
Other – Asset Backed	—		1,701		—		—			1,701			0.6	%
Subtotal – Fixed Income	—		159,121		—		—			159,121			54.8	%
Infrastructure	—		—		730		—			730			0.3	%
Real Estate	—		—		13,772		—			13,772			4.7	%
Alternative Investments	—		—		22,129		—			22,129			7.6	%
Securities Lending	—		12,836		—		—			12,836			4.4	%
Securities Lending Collateral (a)	—		—		—		(12,938		)	(12,938		)	(4.5	)%
Cash and Cash Equivalents	—		3,111		—		—			3,111			1.1	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		581			581			0.2	%
Total	$	66,885	$	198,993	$	36,631	$	(12,357	)	$	290,152		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy by Registrant Subsidiary for pension assets:

APCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	31,757		$	43,939	$	75,696
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		2,829			3,276		6,105
Relating to Assets Sold During the Period	—		9,831			1,616		11,447
Purchases and Sales	1,617		(13,930		)	154		(12,159		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,617	$	30,487		$	48,985	$	81,089

I&M	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	28,275		$	39,121	$	67,396
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		417			3,902		4,319
Relating to Assets Sold During the Period	—		1,448			1,924		3,372
Purchases and Sales	1,490		(2,052		)	183		(379		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,490	$	28,088		$	45,130	$	74,708

OPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	25,367		$	35,098	$	60,465
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		3,802			1,895		5,697
Relating to Assets Sold During the Period	—		13,219			934		14,153
Purchases and Sales	1,255		(18,728		)	89		(17,384		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	1,255	$	23,660		$	38,016	$	62,931

PSO	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	13,380		$	18,513	$	31,893
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		683			1,622		2,305
Relating to Assets Sold During the Period	—		2,371			799		3,170
Purchases and Sales	693		(3,358		)	76		(2,589		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	693	$	13,076		$	21,010	$	34,779

SWEPCo	Infrastructure		Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2014	$	—	$	14,106		$	19,517	$	33,623
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	—		745			1,696		2,441
Relating to Assets Sold During the Period	—		2,590			836		3,426
Purchases and Sales	730		(3,669		)	80		(2,859		)
Transfers into Level 3	—		—			—		—
Transfers out of Level 3	—		—			—		—
Balance as of December 31, 2014	$	730	$	13,772		$	22,129	$	36,631

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2014:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	77,221	$	—	$	—	$	—	$	77,221	27.5	%
International	93,871		—		—		—		93,871		33.5	%
Options	—		2,712		—		—		2,712		1.0	%
Common Collective Trust – Global	—		4,905		—		—		4,905		1.8	%
Subtotal – Equities	171,092		7,617		—		—		178,709		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		17,188		—		—		17,188		6.1	%
United States Government and Agency Securities	—		11,775		—		—		11,775		4.2	%
Corporate Debt	—		20,787		—		—		20,787		7.4	%
Foreign Debt	—		3,532		—		—		3,532		1.3	%
State and Local Government	—		975		—		—		975		0.3	%
Other – Asset Backed	—		820		—		—		820		0.3	%
Subtotal – Fixed Income	—		55,077		—		—		55,077		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,709		—		—		1,709		0.6	%
United States Bonds	—		35,131		—		—		35,131		12.5	%
Subtotal – Trust Owned Life Insurance	—		36,840		—		—		36,840		13.1	%
Cash and Cash Equivalents	7,751		1,586		—		—		9,337		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		670		670		0.2	%
Total	$	178,843	$	101,120	$	—	$	670	$	280,633	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	55,695	$	—	$	—	$	—	$	55,695	27.5	%
International	67,705		—		—		—		67,705		33.5	%
Options	—		1,956		—		—		1,956		1.0	%
Common Collective Trust – Global	—		3,538		—		—		3,538		1.8	%
Subtotal – Equities	123,400		5,494		—		—		128,894		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,397		—		—		12,397		6.1	%
United States Government and Agency Securities	—		8,493		—		—		8,493		4.2	%
Corporate Debt	—		14,993		—		—		14,993		7.4	%
Foreign Debt	—		2,547		—		—		2,547		1.3	%
State and Local Government	—		704		—		—		704		0.3	%
Other – Asset Backed	—		592		—		—		592		0.3	%
Subtotal – Fixed Income	—		39,726		—		—		39,726		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,232		—		—		1,232		0.6	%
United States Bonds	—		25,339		—		—		25,339		12.5	%
Subtotal – Trust Owned Life Insurance	—		26,571		—		—		26,571		13.1	%
Cash and Cash Equivalents	5,590		1,144		—		—		6,734		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		483		483		0.2	%
Total	$	128,990	$	72,935	$	—	$	483	$	202,408	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	56,743	$	—	$	—	$	—	$	56,743	27.5	%
International	68,977		—		—		—		68,977		33.5	%
Options	—		1,993		—		—		1,993		1.0	%
Common Collective Trust – Global	—		3,604		—		—		3,604		1.8	%
Subtotal – Equities	125,720		5,597		—		—		131,317		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		12,630		—		—		12,630		6.1	%
United States Government and Agency Securities	—		8,653		—		—		8,653		4.2	%
Corporate Debt	—		15,274		—		—		15,274		7.4	%
Foreign Debt	—		2,595		—		—		2,595		1.3	%
State and Local Government	—		717		—		—		717		0.3	%
Other – Asset Backed	—		603		—		—		603		0.3	%
Subtotal – Fixed Income	—		40,472		—		—		40,472		19.6	%
Trust Owned Life Insurance:
International Equities	—		1,256		—		—		1,256		0.6	%
United States Bonds	—		25,815		—		—		25,815		12.5	%
Subtotal – Trust Owned Life Insurance	—		27,071		—		—		27,071		13.1	%
Cash and Cash Equivalents	5,695		1,165		—		—		6,860		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		492		492		0.2	%
Total	$	131,415	$	74,305	$	—	$	492	$	206,212	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,425	$	—	$	—	$	—	$	26,425	27.5	%
International	32,126		—		—		—		32,126		33.5	%
Options	—		928		—		—		928		1.0	%
Common Collective Trust – Global	—		1,679		—		—		1,679		1.8	%
Subtotal – Equities	58,551		2,607		—		—		61,158		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		5,882		—		—		5,882		6.1	%
United States Government and Agency Securities	—		4,030		—		—		4,030		4.2	%
Corporate Debt	—		7,114		—		—		7,114		7.4	%
Foreign Debt	—		1,209		—		—		1,209		1.3	%
State and Local Government	—		334		—		—		334		0.3	%
Other – Asset Backed	—		281		—		—		281		0.3	%
Subtotal – Fixed Income	—		18,850		—		—		18,850		19.6	%
Trust Owned Life Insurance:
International Equities	—		585		—		—		585		0.6	%
United States Bonds	—		12,023		—		—		12,023		12.5	%
Subtotal – Trust Owned Life Insurance	—		12,608		—		—		12,608		13.1	%
Cash and Cash Equivalents	2,653		543		—		—		3,196		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		229		229		0.2	%
Total	$	61,204	$	34,608	$	—	$	229	$	96,041	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	29,286	$	—	$	—	$	—	$	29,286	27.5	%
International	35,601		—		—		—		35,601		33.5	%
Options	—		1,029		—		—		1,029		1.0	%
Common Collective Trust – Global	—		1,860		—		—		1,860		1.8	%
Subtotal – Equities	64,887		2,889		—		—		67,776		63.8	%
Fixed Income:
Common Collective Trust – Debt	—		6,519		—		—		6,519		6.1	%
United States Government and Agency Securities	—		4,466		—		—		4,466		4.2	%
Corporate Debt	—		7,884		—		—		7,884		7.4	%
Foreign Debt	—		1,339		—		—		1,339		1.3	%
State and Local Government	—		370		—		—		370		0.3	%
Other – Asset Backed	—		311		—		—		311		0.3	%
Subtotal – Fixed Income	—		20,889		—		—		20,889		19.6	%
Trust Owned Life Insurance:
International Equities	—		648		—		—		648		0.6	%
United States Bonds	—		13,324		—		—		13,324		12.5	%
Subtotal – Trust Owned Life Insurance	—		13,972		—		—		13,972		13.1	%
Cash and Cash Equivalents	2,940		601		—		—		3,541		3.3	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		254		254		0.2	%
Total	$	67,827	$	38,351	$	—	$	254	$	106,432	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables present the classification of pension plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	145,515	$	—	$	—	$	—		$	145,515		23.2	%
International	68,591		—		—		—			68,591			10.9	%
Real Estate Investment Trusts	7,718		—		—		—			7,718			1.2	%
Common Collective Trust – International	—		1,302		—		—			1,302			0.2	%
Subtotal – Equities	221,824		1,302		—		—			223,126			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,456		—		—			3,456			0.5	%
United States Government and Agency Securities	—		51,556		—		—			51,556			8.2	%
Corporate Debt	—		213,280		—		—			213,280			34.0	%
Foreign Debt	—		45,818		—		—			45,818			7.3	%
State and Local Government	—		3,730		—		—			3,730			0.6	%
Other – Asset Backed	—		4,437		—		—			4,437			0.7	%
Subtotal – Fixed Income	—		322,277		—		—			322,277			51.3	%
Real Estate	—		—		31,757		—			31,757			5.0	%
Alternative Investments	—		—		43,939		—			43,939			7.0	%
Securities Lending	—		4,689		—		—			4,689			0.8	%
Securities Lending Collateral (a)	—		—		—		(6,024		)	(6,024		)	(0.9	)%
Cash and Cash Equivalents	—		6,476		—		—			6,476			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,755			1,755			0.3	%
Total	$	221,824	$	334,744	$	75,696	$	(4,269	)	$	627,995		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	129,561	$	—	$	—	$	—		$	129,561		23.2	%
International	61,071		—		—		—			61,071			10.9	%
Real Estate Investment Trusts	6,872		—		—		—			6,872			1.2	%
Common Collective Trust – International	—		1,159		—		—			1,159			0.2	%
Subtotal – Equities	197,504		1,159		—		—			198,663			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		3,077		—		—			3,077			0.5	%
United States Government and Agency Securities	—		45,904		—		—			45,904			8.2	%
Corporate Debt	—		189,896		—		—			189,896			34.0	%
Foreign Debt	—		40,794		—		—			40,794			7.3	%
State and Local Government	—		3,321		—		—			3,321			0.6	%
Other – Asset Backed	—		3,951		—		—			3,951			0.7	%
Subtotal – Fixed Income	—		286,943		—		—			286,943			51.3	%
Real Estate	—		—		28,275		—			28,275			5.0	%
Alternative Investments	—		—		39,121		—			39,121			7.0	%
Securities Lending	—		4,175		—		—			4,175			0.8	%
Securities Lending Collateral (a)	—		—		—		(5,363		)	(5,363		)	(0.9	)%
Cash and Cash Equivalents	—		5,766		—		—			5,766			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,563			1,563			0.3	%
Total	$	197,504	$	298,043	$	67,396	$	(3,800	)	$	559,143		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	116,233	$	—	$	—	$	—		$	116,233		23.2	%
International	54,790		—		—		—			54,790			10.9	%
Real Estate Investment Trusts	6,165		—		—		—			6,165			1.2	%
Common Collective Trust – International	—		1,040		—		—			1,040			0.2	%
Subtotal – Equities	177,188		1,040		—		—			178,228			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		2,761		—		—			2,761			0.5	%
United States Government and Agency Securities	—		41,183		—		—			41,183			8.2	%
Corporate Debt	—		170,365		—		—			170,365			34.0	%
Foreign Debt	—		36,599		—		—			36,599			7.3	%
State and Local Government	—		2,980		—		—			2,980			0.6	%
Other – Asset Backed	—		3,545		—		—			3,545			0.7	%
Subtotal – Fixed Income	—		257,433		—		—			257,433			51.3	%
Real Estate	—		—		25,367		—			25,367			5.0	%
Alternative Investments	—		—		35,098		—			35,098			7.0	%
Securities Lending	—		3,745		—		—			3,745			0.8	%
Securities Lending Collateral (a)	—		—		—		(4,812		)	(4,812		)	(0.9	)%
Cash and Cash Equivalents	—		5,173		—		—			5,173			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		1,402			1,402			0.3	%
Total	$	177,188	$	267,391	$	60,465	$	(3,410	)	$	501,634		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	61,309	$	—	$	—	$	—		$	61,309		23.2	%
International	28,900		—		—		—			28,900			10.9	%
Real Estate Investment Trusts	3,252		—		—		—			3,252			1.2	%
Common Collective Trust – International	—		548		—		—			548			0.2	%
Subtotal – Equities	93,461		548		—		—			94,009			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,456		—		—			1,456			0.5	%
United States Government and Agency Securities	—		21,723		—		—			21,723			8.2	%
Corporate Debt	—		89,863		—		—			89,863			34.0	%
Foreign Debt	—		19,305		—		—			19,305			7.3	%
State and Local Government	—		1,572		—		—			1,572			0.6	%
Other – Asset Backed	—		1,870		—		—			1,870			0.7	%
Subtotal – Fixed Income	—		135,789		—		—			135,789			51.3	%
Real Estate	—		—		13,380		—			13,380			5.0	%
Alternative Investments	—		—		18,513		—			18,513			7.0	%
Securities Lending	—		1,976		—		—			1,976			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,538		)	(2,538		)	(0.9	)%
Cash and Cash Equivalents	—		2,729		—		—			2,729			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		739			739			0.3	%
Total	$	93,461	$	141,042	$	31,893	$	(1,799	)	$	264,597		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other			Total			Year End Allocation
	(in thousands)
Equities:
Domestic	$	64,634	$	—	$	—	$	—		$	64,634		23.2	%
International	30,467		—		—		—			30,467			10.9	%
Real Estate Investment Trusts	3,428		—		—		—			3,428			1.2	%
Common Collective Trust – International	—		578		—		—			578			0.2	%
Subtotal – Equities	98,529		578		—		—			99,107			35.5	%
Fixed Income:
Common Collective Trust – Debt	—		1,535		—		—			1,535			0.5	%
United States Government and Agency Securities	—		22,901		—		—			22,901			8.2	%
Corporate Debt	—		94,736		—		—			94,736			34.0	%
Foreign Debt	—		20,352		—		—			20,352			7.3	%
State and Local Government	—		1,657		—		—			1,657			0.6	%
Other – Asset Backed	—		1,971		—		—			1,971			0.7	%
Subtotal – Fixed Income	—		143,152		—		—			143,152			51.3	%
Real Estate	—		—		14,106		—			14,106			5.0	%
Alternative Investments	—		—		19,517		—			19,517			7.0	%
Securities Lending	—		2,083		—		—			2,083			0.8	%
Securities Lending Collateral (a)	—		—		—		(2,676		)	(2,676		)	(0.9	)%
Cash and Cash Equivalents	—		2,877		—		—			2,877			1.0	%
Other – Pending Transactions and Accrued Income (b)	—		—		—		780			780			0.3	%
Total	$	98,529	$	148,690	$	33,623	$	(1,896	)	$	278,946		100.0	%

(a) Amounts in "Other" column primarily represent an obligation to repay collateral received as part of the Securities Lending Program.

(b) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

The following tables set forth a reconciliation of changes in the fair value of assets classified as Level 3 in the fair value hierarchy for pension assets by Registrant Subsidiary:

APCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	29,063		$	25,888	$	54,951
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,861			1,932		5,793
Relating to Assets Sold During the Period	—			1,949		1,949
Purchases and Sales	(1,167		)	14,170		13,003
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	31,757		$	43,939	$	75,696

I&M	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	25,811		$	22,992	$	48,803
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	3,531			1,727		5,258
Relating to Assets Sold During the Period	—			1,741		1,741
Purchases and Sales	(1,067		)	12,661		11,594
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	28,275		$	39,121	$	67,396

OPCo	Real Estate			Alternative Investments			Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	47,464		$	42,279		$	89,743
Transfer of OPCo Generation Plan Assets	(26,218		)	(36,275		)	(62,493		)
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	5,907			3,113			9,020
Relating to Assets Sold During the Period	—			3,142			3,142
Purchases and Sales	(1,786		)	22,839			21,053
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Balance as of December 31, 2013	$	25,367		$	35,098		$	60,465

PSO	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	12,382		$	11,030	$	23,412
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,430			801		2,231
Relating to Assets Sold During the Period	—			808		808
Purchases and Sales	(432		)	5,874		5,442
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	13,380		$	18,513	$	31,893

SWEPCo	Real Estate			Alternative Investments		Total Level 3
	(in thousands)
Balance as of January 1, 2013	$	13,078		$	11,649	$	24,727
Actual Return on Plan Assets
Relating to Assets Still Held as of the Reporting Date	1,474			841		2,315
Relating to Assets Sold During the Period	—			850		850
Purchases and Sales	(446		)	6,177		5,731
Transfers into Level 3	—			—		—
Transfers out of Level 3	—			—		—
Balance as of December 31, 2013	$	14,106		$	19,517	$	33,623

The following tables present the classification of OPEB plan assets within the fair value hierarchy by Registrant Subsidiary as of December 31, 2013:

APCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	79,369	$	—	$	—	$	—	$	79,369	27.9	%
International	103,188		—		—		—		103,188		36.2	%
Common Collective Trust – Global	—		2,463		—		—		2,463		0.9	%
Subtotal – Equities	182,557		2,463		—		—		185,020		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		14,737		—		—		14,737		5.2	%
United States Government and Agency Securities	—		9,476		—		—		9,476		3.3	%
Corporate Debt	—		18,458		—		—		18,458		6.5	%
Foreign Debt	—		3,605		—		—		3,605		1.2	%
State and Local Government	—		776		—		—		776		0.3	%
Other – Asset Backed	—		1,362		—		—		1,362		0.5	%
Subtotal – Fixed Income	—		48,414		—		—		48,414		17.0	%
Trust Owned Life Insurance:
International Equities	—		2,219		—		—		2,219		0.8	%
United States Bonds	—		35,470		—		—		35,470		12.4	%
Subtotal – Trust Owned Life Insurance	—		37,689		—		—		37,689		13.2	%
Cash and Cash Equivalents	11,441		1,470		—		—		12,911		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		806		806		0.3	%
Total	$	193,998	$	90,036	$	—	$	806	$	284,840	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

I&M
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	57,460	$	—	$	—	$	—	$	57,460	27.9	%
International	74,705		—		—		—		74,705		36.2	%
Common Collective Trust – Global	—		1,783		—		—		1,783		0.9	%
Subtotal – Equities	132,165		1,783		—		—		133,948		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,669		—		—		10,669		5.2	%
United States Government and Agency Securities	—		6,860		—		—		6,860		3.3	%
Corporate Debt	—		13,363		—		—		13,363		6.5	%
Foreign Debt	—		2,610		—		—		2,610		1.2	%
State and Local Government	—		562		—		—		562		0.3	%
Other – Asset Backed	—		986		—		—		986		0.5	%
Subtotal – Fixed Income	—		35,050		—		—		35,050		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,607		—		—		1,607		0.8	%
United States Bonds	—		25,679		—		—		25,679		12.4	%
Subtotal – Trust Owned Life Insurance	—		27,286		—		—		27,286		13.2	%
Cash and Cash Equivalents	8,283		1,064		—		—		9,347		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		583		583		0.3	%
Total	$	140,448	$	65,183	$	—	$	583	$	206,214	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

OPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	59,069	$	—	$	—	$	—	$	59,069	27.9	%
International	76,799		—		—		—		76,799		36.2	%
Common Collective Trust – Global	—		1,833		—		—		1,833		0.9	%
Subtotal – Equities	135,868		1,833		—		—		137,701		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		10,968		—		—		10,968		5.2	%
United States Government and Agency Securities	—		7,053		—		—		7,053		3.3	%
Corporate Debt	—		13,738		—		—		13,738		6.5	%
Foreign Debt	—		2,683		—		—		2,683		1.2	%
State and Local Government	—		577		—		—		577		0.3	%
Other – Asset Backed	—		1,014		—		—		1,014		0.5	%
Subtotal – Fixed Income	—		36,033		—		—		36,033		17.0	%
Trust Owned Life Insurance:
International Equities	—		1,652		—		—		1,652		0.8	%
United States Bonds	—		26,399		—		—		26,399		12.4	%
Subtotal – Trust Owned Life Insurance	—		28,051		—		—		28,051		13.2	%
Cash and Cash Equivalents	8,515		1,094		—		—		9,609		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		600		600		0.3	%
Total	$	144,383	$	67,011	$	—	$	600	$	211,994	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

PSO
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	26,842	$	—	$	—	$	—	$	26,842	27.9	%
International	34,898		—		—		—		34,898		36.2	%
Common Collective Trust – Global	—		833		—		—		833		0.9	%
Subtotal – Equities	61,740		833		—		—		62,573		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		4,984		—		—		4,984		5.2	%
United States Government and Agency Securities	—		3,205		—		—		3,205		3.3	%
Corporate Debt	—		6,243		—		—		6,243		6.5	%
Foreign Debt	—		1,219		—		—		1,219		1.2	%
State and Local Government	—		262		—		—		262		0.3	%
Other – Asset Backed	—		461		—		—		461		0.5	%
Subtotal – Fixed Income	—		16,374		—		—		16,374		17.0	%
Trust Owned Life Insurance:
International Equities	—		751		—		—		751		0.8	%
United States Bonds	—		11,996		—		—		11,996		12.4	%
Subtotal – Trust Owned Life Insurance	—		12,747		—		—		12,747		13.2	%
Cash and Cash Equivalents	3,869		497		—		—		4,366		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		273		273		0.3	%
Total	$	65,609	$	30,451	$	—	$	273	$	96,333	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

SWEPCo
Asset Class	Level 1		Level 2		Level 3		Other		Total		Year End Allocation
	(in thousands)
Equities:
Domestic	$	30,022	$	—	$	—	$	—	$	30,022	27.9	%
International	39,034		—		—		—		39,034		36.2	%
Common Collective Trust – Global	—		932		—		—		932		0.9	%
Subtotal – Equities	69,056		932		—		—		69,988		65.0	%
Fixed Income:
Common Collective Trust – Debt	—		5,575		—		—		5,575		5.2	%
United States Government and Agency Securities	—		3,585		—		—		3,585		3.3	%
Corporate Debt	—		6,982		—		—		6,982		6.5	%
Foreign Debt	—		1,364		—		—		1,364		1.2	%
State and Local Government	—		294		—		—		294		0.3	%
Other – Asset Backed	—		515		—		—		515		0.5	%
Subtotal – Fixed Income	—		18,315		—		—		18,315		17.0	%
Trust Owned Life Insurance:
International Equities	—		840		—		—		840		0.8	%
United States Bonds	—		13,418		—		—		13,418		12.4	%
Subtotal – Trust Owned Life Insurance	—		14,258		—		—		14,258		13.2	%
Cash and Cash Equivalents	4,328		556		—		—		4,884		4.5	%
Other – Pending Transactions and Accrued Income (a)	—		—		—		305		305		0.3	%
Total	$	73,384	$	34,061	$	—	$	305	$	107,750	100.0	%

(a) Amounts in "Other" column primarily represent accrued interest, dividend receivables and transactions pending settlement.

Determination of Pension Expense

The determination of pension expense or income is based on a market-related valuation of assets which reduces year-to-year volatility.  This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur.  Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return.

The accumulated benefit obligation for the pension plans is as follows:

Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	688,632	$	598,190	$	512,467	$	270,059	$	281,210
Nonqualified Pension Plans	464		470		69		2,750		1,749
Total as of December 31, 2014	$	689,096	$	598,660	$	512,536	$	272,809	$	282,959
Accumulated Benefit Obligation	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
Qualified Pension Plan	$	653,968	$	560,443	$	512,798	$	248,472	$	256,083
Nonqualified Pension Plans	200		326		6		1,387		1,115
Total as of December 31, 2013	$	654,168	$	560,769	$	512,804	$	249,859	$	257,198

For the underfunded pension plans that had an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of these plans as of December 31, 2014 and 2013 were as follows:

	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	702,805		$	617,948		$	526,250		$	2,770		$	1,790
Accumulated Benefit Obligation	$	689,096		$	598,660		$	512,536		$	2,750		$	1,749
Fair Value of Plan Assets	642,289			591,737			498,461			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2014	$	(46,807	)	$	(6,923	)	$	(14,075	)	$	(2,750	)	$	(1,749	)
	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Projected Benefit Obligation	$	663,231		$	574,699		$	523,643		$	1,394		$	1,124
Accumulated Benefit Obligation	$	654,168		$	560,769		$	512,804		$	1,387		$	1,115
Fair Value of Plan Assets	627,995			559,143			501,634			—			—
Underfunded Accumulated Benefit Obligation as of December 31, 2013	$	(26,173	)	$	(1,626	)	$	(11,170	)	$	(1,387	)	$	(1,115	)

Estimated Future Benefit Payments and Contributions

The estimated pension benefit payments and contributions to the trust are at least the minimum amount required by the Employee Retirement Income Security Act plus payment of unfunded nonqualified benefits.  For the qualified pension plan, additional discretionary contributions may also be made to maintain the funded status of the plan.   For OPEB plans, expected payments include the payment of unfunded benefits.  The following table provides the estimated contributions and payments by Registrant Subsidiary for 2015:

Company	Pension Plans		Other Postretirement Benefit Plans
	(in thousands)
APCo	$	11,631	$	2,884
I&M	12,492		—
OPCo	7,847		—
PSO	6,656		—
SWEPCo	7,840		—

The tables below reflect the total benefits expected to be paid from the plan or from the Registrant Subsidiaries' assets.  The payments include the participants’ contributions to the plan for their share of the cost.  Effective for employees hired after December 2013, retiree medical coverage will not be provided.  Future benefit payments are dependent on the number of employees retiring, whether the retiring employees elect to receive pension benefits as annuities or as lump sum distributions, future integration of the benefit plans with changes to Medicare and other legislation, future levels of interest rates and variances in actuarial results.  The estimated payments for the pension benefits and OPEB are as follows:

Pension Plans	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	42,859	$	33,114	$	36,277	$	18,950	$	18,872
2016	43,091		33,813		36,174		19,626		18,747
2017	43,484		35,748		35,571		20,175		20,407
2018	45,122		36,948		35,822		21,118		21,019
2019	45,488		38,727		36,179		21,732		22,059
Years 2020 to 2024, in Total	236,107		209,813		176,022		109,800		118,909

Other Postretirement Benefit Plans: Benefit Payments	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	24,828	$	15,088	$	16,379	$	6,989	$	7,401
2016	24,603		15,363		16,289		7,067		7,504
2017	24,468		15,484		16,088		7,074		7,674
2018	24,820		15,637		16,122		7,132		7,840
2019	24,290		15,804		16,079		7,278		7,885
Years 2020 to 2024, in Total	121,401		84,026		80,066		38,852		43,503

Other Postretirement Benefit Plans: Medicare Subsidy Receipts	APCo		I&M		OPCo		PSO		SWEPCo
	(in thousands)
2015	$	232	$	—	$	—	$	—	$	—
2016	236		—		—		—		—
2017	234		—		—		—		—
2018	231		—		—		—		—
2019	230		—		—		—		—
Years 2020 to 2024, in Total	1,080		—		—		—		—

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (credit) by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

APCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	7,036		$	6,171		$	7,565		$	1,448		$	2,566		$	5,387
Interest Cost	29,624			27,662			30,211			12,788			13,454			18,462
Expected Return on Plan Assets	(33,927		)	(37,041		)	(41,944		)	(18,533		)	(18,147		)	(16,753		)
Amortization of Transition Obligation	—			—			—			—			—			780
Amortization of Prior Service Cost (Credit)	197			198			475			(10,050		)	(10,050		)	(2,862		)
Amortization of Net Actuarial Loss	16,593			25,025			20,339			4,582			12,249			10,526
Net Periodic Benefit Cost (Credit)	19,523			22,015			16,646			(9,765		)	72			15,540
Capitalized Portion	(6,819		)	(7,529		)	(6,525		)	3,411			(25		)	(6,092		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	12,704		$	14,486		$	10,121		$	(6,354	)	$	47		$	9,448

I&M	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	10,068		$	8,736		$	9,908		$	1,947		$	3,219		$	6,621
Interest Cost	26,293			24,100			26,245			7,638			8,221			12,785
Expected Return on Plan Assets	(30,993		)	(32,826		)	(37,566		)	(13,454		)	(13,183		)	(12,847		)
Amortization of Transition Obligation	—			—			—			—			—			132
Amortization of Prior Service Cost (Credit)	195			195			407			(9,421		)	(9,421		)	(2,383		)
Amortization of Net Actuarial Loss	14,585			21,688			17,569			2,368			7,526			7,050
Net Periodic Benefit Cost (Credit)	20,148			21,893			16,563			(10,922		)	(3,638		)	11,358
Capitalized Portion	(4,638		)	(4,576		)	(3,114		)	2,514			760			(2,135		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	15,510		$	17,317		$	13,449		$	(8,408	)	$	(2,878	)	$	9,223

OPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,140		$	5,285		$	11,003		$	1,026		$	2,882		$	8,748
Interest Cost	22,105			21,939			45,194			7,601			9,494			24,189
Expected Return on Plan Assets	(26,427		)	(29,919		)	(68,401		)	(13,519		)	(13,468		)	(22,555		)
Amortization of Transition Obligation	—			—			—			—			—			104
Amortization of Prior Service Cost (Credit)	157			157			743			(6,923		)	(6,962		)	(3,873		)
Amortization of Net Actuarial Loss	12,422			19,833			30,439			2,379			8,633			13,669
Net Periodic Benefit Cost (Credit)	13,397			17,295			18,978			(9,436		)	579			20,282
Capitalized Portion	(5,479		)	(6,192		)	(7,060		)	3,859			(207		)	(7,545		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,918		$	11,103		$	11,918		$	(5,577	)	$	372		$	12,737

PSO	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	5,207		$	5,562		$	5,951		$	839		$	1,372		$	2,836
Interest Cost	12,057			10,993			12,301			3,574			3,793			5,797
Expected Return on Plan Assets	(14,604		)	(15,675		)	(18,015		)	(6,300		)	(6,089		)	(5,922		)
Amortization of Prior Service Cost (Credit)	296			297			(948		)	(4,290		)	(4,289		)	(1,079		)
Amortization of Net Actuarial Loss	6,753			9,845			8,206			1,109			3,476			3,189
Net Periodic Benefit Cost (Credit)	9,709			11,022			7,495			(5,068		)	(1,737		)	4,821
Capitalized Portion	(3,320		)	(3,384		)	(2,533		)	1,733			533			(1,629		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	6,389		$	7,638		$	4,962		$	(3,335	)	$	(1,204	)	$	3,192

SWEPCo	Pension Plans									Other Postretirement Benefit Plans
	Years Ended December 31,
	2014			2013			2012			2014			2013			2012
	(in thousands)
Service Cost	$	6,618		$	7,011		$	7,099		$	1,012		$	1,693		$	3,324
Interest Cost	12,651			11,454			12,537			3,992			4,301			6,673
Expected Return on Plan Assets	(15,427		)	(16,509		)	(18,866		)	(7,016		)	(6,881		)	(6,795		)
Amortization of Prior Service Cost (Credit)	349			349			(793		)	(5,156		)	(5,156		)	(933		)
Amortization of Net Actuarial Loss	7,046			10,214			8,330			1,235			3,928			3,659
Net Periodic Benefit Cost (Credit)	11,237			12,519			8,307			(5,933		)	(2,115		)	5,928
Capitalized Portion	(3,391		)	(3,518		)	(2,924		)	1,791			594			(2,087		)
Net Periodic Benefit Cost (Credit) Recognized in Expense	$	7,846		$	9,001		$	5,383		$	(4,142	)	$	(1,521	)	$	3,841

Estimated amounts expected to be amortized to net periodic benefit costs (credits) and the impact on each Registrant Subsidiaries’ balance sheet during 2015 are shown in the following tables:

	APCo			I&M			OPCo			PSO			SWEPCo
Pension Plans – Components	(in thousands)
Net Actuarial Loss	$	14,457		$	12,713		$	10,823		$	5,891		$	6,146
Prior Service Cost	180			181			140			252			308
Total Estimated 2015 Amortization	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
Pension Plans – Expected to be Recorded as
Regulatory Asset	$	14,560		$	12,114		$	10,963		$	6,143		$	6,454
Deferred Income Taxes	27			273			—			—			—
Net of Tax AOCI	50			507			—			—			—
Total	$	14,637		$	12,894		$	10,963		$	6,143		$	6,454
	APCo			I&M			OPCo			PSO			SWEPCo
Other Postretirement Benefit Plans – Components	(in thousands)
Net Actuarial Loss	$	3,353		$	1,814		$	1,848		$	861		$	954
Prior Service Credit	(10,050		)	(9,421		)	(6,922		)	(4,290		)	(5,156		)
Total Estimated 2015 Amortization	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)
Other Postretirement Benefit Plans – Expected to be Recorded as
Regulatory Asset	$	(3,693	)	$	(6,934	)	$	(5,074	)	$	(3,429	)	$	(2,687	)
Deferred Income Taxes	(1,051		)	(236		)	—			—			(530		)
Net of Tax AOCI	(1,953		)	(437		)	—			—			(985		)
Total	$	(6,697	)	$	(7,607	)	$	(5,074	)	$	(3,429	)	$	(4,202	)

American Electric Power System Retirement Savings Plan

The Registrant Subsidiaries participate in an AEP sponsored defined contribution retirement savings plan, the American Electric Power System Retirement Savings Plan, for substantially all employees who are not covered by a retirement savings plan of the United Mine Workers of America (UMWA).  This qualified plan offers participants an opportunity to contribute a portion of their pay, includes features under Section 401(k) of the Internal Revenue Code and provides for company matching contributions.  The matching contributions to the plan are 100% of the first 1% of eligible employee contributions and 70% of the next 5% of contributions.

The following table provides the cost for matching contributions to the retirement savings plans by Registrant Subsidiary for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Company	2014		2013		2012
	(in thousands)
APCo	$	7,280	$	7,366	$	7,579
I&M	10,461		10,010		9,706
OPCo	5,207		6,502		10,798
PSO	4,026		3,784		3,732
SWEPCo	5,272		4,970		4,890

UMWA Benefits

APCo provides UMWA pension, health and welfare benefits for certain unionized mining retirees and their survivors who meet eligibility requirements.  UMWA trustees make final interpretive determinations with regard to all benefits.  The pension benefits are administered by UMWA trustees.  APCo administers the health and welfare benefits and pays them from its general assets.

The UMWA pension benefits are administered through a multiemployer plan that is different from single-employer plans as an employer’s contributions may be used to provide benefits to employees of other participating employers.  Required contributions not made by an employer may result in other employers bearing the unfunded plan obligations, while a withdrawing employer may be subject to a withdrawal liability.  UMWA pension benefits are provided through the United Mine Workers of America 1974 Pension Plan (Employer Identification Number: 52-1050282, Plan Number 002), which under the Pension Protection Act of 2006 (PPA) was in Critical Status for the plan year ending June 30, 2014 and in Seriously Endangered Status for the plan year ending June 30, 2013, without utilization of extended amortization provisions.  The Plan adopted a funding improvement plan in May 2012, as required under the PPA.

Contributions to the UMWA pension plan in 2014, 2013 and 2012 were immaterial and represent less than 5% of the total contributions in the plan’s latest annual report for the years ended June 30, 2014, 2013 and 2012.  UMWA pension contributions included a surcharge of 5% beginning December 2014 and are scheduled to include a surcharge of 10% beginning July 2015.  There are no minimum contributions for future years.