

	Volume
	June 30, 2015		December 31, 2014		Unit of Measure
Primary Risk Exposure	(in millions)
Commodity:
Power	440		334		MWhs
Coal	2		3		Tons
Natural Gas	73		106		MMBtus
Heating Oil and Gasoline	8		6		Gallons
Interest Rate	$	129	$	152	USD

Interest Rate and Foreign Currency	$	564	$	815	USD

Amount of Gain (Loss) Recognized on Risk Management Contracts

June 30, 2015



	Risk Management Contracts		Hedging Contracts						Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)			Interest Rate and Foreign Currency (a)
	(in millions)
Current Risk Management Assets	$	390	$	22		$	2		$	414	$	(242	)	$	172
Long-term Risk Management Assets	451		4			—			455		(92		)	363
Total Assets	841		26			2			869		(334		)	535

Current Risk Management Liabilities	311		18			1			330		(252		)	78
Long-term Risk Management Liabilities	258		17			5			280		(106		)	174
Total Liabilities	569		35			6			610		(358		)	252

Total MTM Derivative Contract Net Assets (Liabilities)	$	272	$	(9	)	$	(4	)	$	259	$	24		$	283

Fair Value of Derivative Instruments
December 31, 2014

	Risk Management Contracts		Hedging Contracts						Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)			Interest Rate and Foreign Currency (a)
	(in millions)
Current Risk Management Assets	$	392	$	30		$	3		$	425	$	(247	)	$	178
Long-term Risk Management Assets	367		3			—			370		(76		)	294
Total Assets	759		33			3			795		(323		)	472

Current Risk Management Liabilities	329		23			1			353		(261		)	92
Long-term Risk Management Liabilities	208		8			9			225		(94		)	131
Total Liabilities	537		31			10			578		(355		)	223

Total MTM Derivative Contract Net Assets (Liabilities)	$	222	$	2		$	(7	)	$	217	$	32		$	249


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three and Six Months Ended June 30, 2015 and 2014



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Location of Gain (Loss)	2015		2014		2015			2014
	(in millions)
Vertically Integrated Utilities Revenues	$	1	$	4	$	7		$	22
Generation & Marketing Revenues	10		16		59			48
Other Operation Expense	—		—		(2		)	—
Maintenance Expense	—		—		(1		)	—
Purchased Electricity for Resale	—		—		4			—
Regulatory Assets (a)	4		—		—			—
Regulatory Liabilities (a)	49		29		53			118
Total Gain on Risk Management Contracts	$	64	$	49	$	120		$	188


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

Gain (Loss) on Hedging Instruments



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in millions)
Gain on Fair Value Hedging Instruments	$	1		$	2		$	6		$	4
Loss on Fair Value Portion of Long-term Debt	(1		)	(2		)	(6		)	(4		)

Impact of Cash Flow Hedges on the Condensed Balance Sheet



Impact of Cash Flow Hedges on the Condensed Balance Sheet
June 30, 2015

	Commodity			Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	10		$	—		$	10
Hedging Liabilities (a)	19			1			20
AOCI Loss Net of Tax	(5		)	(18		)	(23		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	4			(1		)	3

Impact of Cash Flow Hedges on the Condensed Balance Sheet
December 31, 2014

	Commodity			Interest Rate and Foreign Currency			Total
	(in millions)
Hedging Assets (a)	$	16		$	—		$	16
Hedging Liabilities (a)	14			1			15
AOCI Gain (Loss) Net of Tax	1			(19		)	(18		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	4			(2		)	2


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

Collateral Required Under Various Triggering Events



	June 30,		December 31,
	2015		2014
	(in millions)
Fair Value of Contracts with Credit Downgrade Triggers	$	—	$	—
Amount of Collateral AEP Subsidiaries Would Have been Required to Post for Derivative Contracts as well as Derivative and Non-Derivative Contracts Subject to the Same Master Netting Arrangement	—		—
Amount of Collateral AEP Subsidiaries Would Have Been Required to Post Attributable to RTOs and ISOs	31		36
Amount of Collateral Attributable to Other Contracts (a)	304		281


(a)	Represents the amount of collateral AEP subsidiaries would have been required to post for other significant non-derivative contracts including AGR jointly owned plant contracts and various other commodity related contracts.

Appalachian Power Co [Member]



	June 30, 2015		December 31, 2014
	(in millions)
Liabilities for Contracts with Cross Default Provisions Prior to Contractual Netting Arrangements	$	287	$	235
Amount of Cash Collateral Posted	5		9
Additional Settlement Liability if Cross Default Provision is Triggered	225		178

June 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	82,828		38,036		5,428		26,530		31,839
Coal	Tons	232		250		—		—		750
Natural Gas	MMBtus	339		227		—		12		14
Heating Oil and Gasoline	Gallons	1,468		695		1,546		852		975
Interest Rate	USD	$	3,590	$	2,435	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	June 30, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	—	$	915	$	68	$	98
I&M	—		428		163		47
OPCo	—		121		—		102
PSO	—		115		—		54
SWEPCo	—		134		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

APCo

Fair Value of Derivative Instruments

June 30, 2015



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	52,015	$	—	$	—	$	52,015	$	(13,138	)	$	38,877
Long-term Risk Management Assets	3,286		—		—		3,286		(284		)	3,002
Total Assets	55,301		—		—		55,301		(13,422		)	41,879

Current Risk Management Liabilities	23,210		—		—		23,210		(14,051		)	9,159
Long-term Risk Management Liabilities	1,734		—		—		1,734		(286		)	1,448
Total Liabilities	24,944		—		—		24,944		(14,337		)	10,607

Total MTM Derivative Contract Net Assets (Liabilities)	$	30,357	$	—	$	—	$	30,357	$	915		$	31,272

APCo

Fair Value of Derivative Instruments

December 31, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	32,903	$	—	$	—	$	32,903	$	(9,111	)	$	23,792
Long-term Risk Management Assets	5,159		—		—		5,159		(268		)	4,891
Total Assets	38,062		—		—		38,062		(9,379		)	28,683

Current Risk Management Liabilities	20,161		—		—		20,161		(9,144		)	11,017
Long-term Risk Management Liabilities	2,322		—		—		2,322		(265		)	2,057
Total Liabilities	22,483		—		—		22,483		(9,409		)	13,074

Total MTM Derivative Contract Net Assets (Liabilities)	$	15,579	$	—	$	—	$	15,579	$	30		$	15,609


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	480		$	619		$	35		$	35		$	43
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(80		)	(58		)	(111		)	(76		)	(99		)
Maintenance Expense	(133		)	(55		)	(114		)	(79		)	(84		)
Purchased Electricity for Resale	11			38			—			—			—
Regulatory Assets (a)	558			328			—			954			2,111
Regulatory Liabilities (a)	26,809			8,415			(7,272		)	6,242			9,350
Total Gain (Loss) on Risk Management Contracts	$	28,000		$	10,292		$	(7,462	)	$	7,076		$	11,321

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,184	$	1,323		$	56	$	63		$	(79	)
Sales to AEP Affiliates	—		(300		)	—		300			—
Regulatory Assets (a)	—		—			—		(12		)	(16		)
Regulatory Liabilities (a)	13,718		8,793			6,404		(669		)	(1,019		)
Total Gain (Loss) on Risk Management Contracts	$	14,902	$	9,816		$	6,460	$	(318	)	$	(1,114	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,158		$	3,241		$	35		$	24		$	26
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(199		)	(158		)	(261		)	(198		)	(246		)
Maintenance Expense	(338		)	(135		)	(257		)	(160		)	(177		)
Purchased Electricity for Resale	740			332			—			—			—
Regulatory Assets (a)	1,275			(232		)	—			805			(1,422		)
Regulatory Liabilities (a)	28,600			5,839			(2,599		)	5,575			13,309
Total Gain (Loss) on Risk Management Contracts	$	31,591		$	9,892		$	(3,082	)	$	6,046		$	11,490

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	6,031	$	7,479		$	56	$	127		$	(56	)
Sales to AEP Affiliates	—		(521		)	—		521			—
Regulatory Assets (a)	4		—			—		(10		)	(13		)
Regulatory Liabilities (a)	46,050		27,110			41,503		(189		)	311
Total Gain on Risk Management Contracts	$	52,085	$	34,068		$	41,559	$	449		$	242


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

Affiliated Derivative Transactions



	June 30, 2015
Company	Risk Management Assets		Regulatory Liabilities and Deferred Investment Tax Credits
	(in thousands)
APCo	$	2,690	$	2,690
I&M	3,137		3,137

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

June 30, 2015



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,027
I&M	—		—		—		—		—		(13,871		)
OPCo	—		—		—		—		—		4,916
PSO	—		—		—		—		—		4,563
SWEPCo	—		—		—		—		—		(9,902		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	773		0
I&M	—		(1,214		)	0
OPCo	—		1,350			0
PSO	—		759			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


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

Collateral Required Under Various Triggering Events



	June 30, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	3,211	$	987
I&M	—		—		2,178		215
OPCo	—		—		—		—
PSO	—		—		244		6,783
SWEPCo	—		—		293		210



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Indiana Michigan Power Co [Member]



	June 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	6,795	$	—	$	6,715
I&M	4,609		—		4,554
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

June 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	82,828		38,036		5,428		26,530		31,839
Coal	Tons	232		250		—		—		750
Natural Gas	MMBtus	339		227		—		12		14
Heating Oil and Gasoline	Gallons	1,468		695		1,546		852		975
Interest Rate	USD	$	3,590	$	2,435	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	June 30, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	—	$	915	$	68	$	98
I&M	—		428		163		47
OPCo	—		121		—		102
PSO	—		115		—		54
SWEPCo	—		134		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

I&M

Fair Value of Derivative Instruments

June 30, 2015



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	26,147	$	—	$	—	$	26,147	$	(9,633	)	$	16,514
Long-term Risk Management Assets	2,219		—		—		2,219		(193		)	2,026
Total Assets	28,366		—		—		28,366		(9,826		)	18,540

Current Risk Management Liabilities	14,553		—		—		14,553		(10,060		)	4,493
Long-term Risk Management Liabilities	1,176		—		—		1,176		(194		)	982
Total Liabilities	15,729		—		—		15,729		(10,254		)	5,475

Total MTM Derivative Contract Net Assets (Liabilities)	$	12,637	$	—	$	—	$	12,637	$	428		$	13,065

I&M

Fair Value of Derivative Instruments

December 31, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	28,545	$	—	$	—	$	28,545	$	(6,217	)	$	22,328
Long-term Risk Management Assets	3,499		—		—		3,499		(182		)	3,317
Total Assets	32,044		—		—		32,044		(6,399		)	25,645

Current Risk Management Liabilities	11,326		—		—		11,326		(6,103		)	5,223
Long-term Risk Management Liabilities	1,575		—		—		1,575		(180		)	1,395
Total Liabilities	12,901		—		—		12,901		(6,283		)	6,618

Total MTM Derivative Contract Net Assets (Liabilities)	$	19,143	$	—	$	—	$	19,143	$	(116	)	$	19,027


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	480		$	619		$	35		$	35		$	43
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(80		)	(58		)	(111		)	(76		)	(99		)
Maintenance Expense	(133		)	(55		)	(114		)	(79		)	(84		)
Purchased Electricity for Resale	11			38			—			—			—
Regulatory Assets (a)	558			328			—			954			2,111
Regulatory Liabilities (a)	26,809			8,415			(7,272		)	6,242			9,350
Total Gain (Loss) on Risk Management Contracts	$	28,000		$	10,292		$	(7,462	)	$	7,076		$	11,321

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,184	$	1,323		$	56	$	63		$	(79	)
Sales to AEP Affiliates	—		(300		)	—		300			—
Regulatory Assets (a)	—		—			—		(12		)	(16		)
Regulatory Liabilities (a)	13,718		8,793			6,404		(669		)	(1,019		)
Total Gain (Loss) on Risk Management Contracts	$	14,902	$	9,816		$	6,460	$	(318	)	$	(1,114	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,158		$	3,241		$	35		$	24		$	26
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(199		)	(158		)	(261		)	(198		)	(246		)
Maintenance Expense	(338		)	(135		)	(257		)	(160		)	(177		)
Purchased Electricity for Resale	740			332			—			—			—
Regulatory Assets (a)	1,275			(232		)	—			805			(1,422		)
Regulatory Liabilities (a)	28,600			5,839			(2,599		)	5,575			13,309
Total Gain (Loss) on Risk Management Contracts	$	31,591		$	9,892		$	(3,082	)	$	6,046		$	11,490

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	6,031	$	7,479		$	56	$	127		$	(56	)
Sales to AEP Affiliates	—		(521		)	—		521			—
Regulatory Assets (a)	4		—			—		(10		)	(13		)
Regulatory Liabilities (a)	46,050		27,110			41,503		(189		)	311
Total Gain on Risk Management Contracts	$	52,085	$	34,068		$	41,559	$	449		$	242


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

Affiliated Derivative Transactions



	June 30, 2015
Company	Risk Management Assets		Regulatory Liabilities and Deferred Investment Tax Credits
	(in thousands)
APCo	$	2,690	$	2,690
I&M	3,137		3,137

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

June 30, 2015



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,027
I&M	—		—		—		—		—		(13,871		)
OPCo	—		—		—		—		—		4,916
PSO	—		—		—		—		—		4,563
SWEPCo	—		—		—		—		—		(9,902		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	773		0
I&M	—		(1,214		)	0
OPCo	—		1,350			0
PSO	—		759			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


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

Collateral Required Under Various Triggering Events



	June 30, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	3,211	$	987
I&M	—		—		2,178		215
OPCo	—		—		—		—
PSO	—		—		244		6,783
SWEPCo	—		—		293		210



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166



	June 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	6,795	$	—	$	6,715
I&M	4,609		—		4,554
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

Ohio Power Co [Member]

June 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	82,828		38,036		5,428		26,530		31,839
Coal	Tons	232		250		—		—		750
Natural Gas	MMBtus	339		227		—		12		14
Heating Oil and Gasoline	Gallons	1,468		695		1,546		852		975
Interest Rate	USD	$	3,590	$	2,435	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	June 30, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	—	$	915	$	68	$	98
I&M	—		428		163		47
OPCo	—		121		—		102
PSO	—		115		—		54
SWEPCo	—		134		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

OPCo

Fair Value of Derivative Instruments

June 30, 2015



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	70	$	—	$	—	$	70	$	(70	)	$	—
Long-term Risk Management Assets	44,056		—		—		44,056		—			44,056
Total Assets	44,126		—		—		44,126		(70		)	44,056

Current Risk Management Liabilities	2,201		—		—		2,201		(191		)	2,010
Long-term Risk Management Liabilities	4,573		—		—		4,573		—			4,573
Total Liabilities	6,774		—		—		6,774		(191		)	6,583

Total MTM Derivative Contract Net Assets (Liabilities)	$	37,352	$	—	$	—	$	37,352	$	121		$	37,473

OPCo

Fair Value of Derivative Instruments

December 31, 2014



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	7,242	$	—	$	—	$	7,242	$	—		$	7,242
Long-term Risk Management Assets	45,102		—		—		45,102		—			45,102
Total Assets	52,344		—		—		52,344		—			52,344

Current Risk Management Liabilities	2,045		—		—		2,045		(102		)	1,943
Long-term Risk Management Liabilities	3,013		—		—		3,013		—			3,013
Total Liabilities	5,058		—		—		5,058		(102		)	4,956

Total MTM Derivative Contract Net Assets (Liabilities)	$	47,286	$	—	$	—	$	47,286	$	102		$	47,388


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	480		$	619		$	35		$	35		$	43
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(80		)	(58		)	(111		)	(76		)	(99		)
Maintenance Expense	(133		)	(55		)	(114		)	(79		)	(84		)
Purchased Electricity for Resale	11			38			—			—			—
Regulatory Assets (a)	558			328			—			954			2,111
Regulatory Liabilities (a)	26,809			8,415			(7,272		)	6,242			9,350
Total Gain (Loss) on Risk Management Contracts	$	28,000		$	10,292		$	(7,462	)	$	7,076		$	11,321

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,184	$	1,323		$	56	$	63		$	(79	)
Sales to AEP Affiliates	—		(300		)	—		300			—
Regulatory Assets (a)	—		—			—		(12		)	(16		)
Regulatory Liabilities (a)	13,718		8,793			6,404		(669		)	(1,019		)
Total Gain (Loss) on Risk Management Contracts	$	14,902	$	9,816		$	6,460	$	(318	)	$	(1,114	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,158		$	3,241		$	35		$	24		$	26
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(199		)	(158		)	(261		)	(198		)	(246		)
Maintenance Expense	(338		)	(135		)	(257		)	(160		)	(177		)
Purchased Electricity for Resale	740			332			—			—			—
Regulatory Assets (a)	1,275			(232		)	—			805			(1,422		)
Regulatory Liabilities (a)	28,600			5,839			(2,599		)	5,575			13,309
Total Gain (Loss) on Risk Management Contracts	$	31,591		$	9,892		$	(3,082	)	$	6,046		$	11,490

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	6,031	$	7,479		$	56	$	127		$	(56	)
Sales to AEP Affiliates	—		(521		)	—		521			—
Regulatory Assets (a)	4		—			—		(10		)	(13		)
Regulatory Liabilities (a)	46,050		27,110			41,503		(189		)	311
Total Gain on Risk Management Contracts	$	52,085	$	34,068		$	41,559	$	449		$	242


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

June 30, 2015



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,027
I&M	—		—		—		—		—		(13,871		)
OPCo	—		—		—		—		—		4,916
PSO	—		—		—		—		—		4,563
SWEPCo	—		—		—		—		—		(9,902		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	773		0
I&M	—		(1,214		)	0
OPCo	—		1,350			0
PSO	—		759			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


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

Collateral Required Under Various Triggering Events



	June 30, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	3,211	$	987
I&M	—		—		2,178		215
OPCo	—		—		—		—
PSO	—		—		244		6,783
SWEPCo	—		—		293		210



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Public Service Co Of Oklahoma [Member]



	June 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	6,795	$	—	$	6,715
I&M	4,609		—		4,554
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

June 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	82,828		38,036		5,428		26,530		31,839
Coal	Tons	232		250		—		—		750
Natural Gas	MMBtus	339		227		—		12		14
Heating Oil and Gasoline	Gallons	1,468		695		1,546		852		975
Interest Rate	USD	$	3,590	$	2,435	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	June 30, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	—	$	915	$	68	$	98
I&M	—		428		163		47
OPCo	—		121		—		102
PSO	—		115		—		54
SWEPCo	—		134		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

PSO

Fair Value of Derivative Instruments

June 30, 2015



	Risk Management Contracts		Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized		Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)		Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	1,821	$	—	$	—	$	1,821	$	(90	)	$	1,731
Long-term Risk Management Assets	29		—		—		29		—			29
Total Assets	1,850		—		—		1,850		(90		)	1,760

Current Risk Management Liabilities	334		—		—		334		(205		)	129
Long-term Risk Management Liabilities	—		—		—		—		—			—
Total Liabilities	334		—		—		334		(205		)	129

Total MTM Derivative Contract Net Assets (Liabilities)	$	1,516	$	—	$	—	$	1,516	$	115		$	1,631

PSO

Fair Value of Derivative Instruments

December 31, 2014



	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	360		$	—	$	—	$	360		$	(360	)	$	—
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	360			—		—		360			(360		)	—

Current Risk Management Liabilities	1,332			—		—		1,332			(414		)	918
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,332			—		—		1,332			(414		)	918

Total MTM Derivative Contract Net Assets (Liabilities)	$	(972	)	$	—	$	—	$	(972	)	$	54		$	(918	)


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	480		$	619		$	35		$	35		$	43
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(80		)	(58		)	(111		)	(76		)	(99		)
Maintenance Expense	(133		)	(55		)	(114		)	(79		)	(84		)
Purchased Electricity for Resale	11			38			—			—			—
Regulatory Assets (a)	558			328			—			954			2,111
Regulatory Liabilities (a)	26,809			8,415			(7,272		)	6,242			9,350
Total Gain (Loss) on Risk Management Contracts	$	28,000		$	10,292		$	(7,462	)	$	7,076		$	11,321

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,184	$	1,323		$	56	$	63		$	(79	)
Sales to AEP Affiliates	—		(300		)	—		300			—
Regulatory Assets (a)	—		—			—		(12		)	(16		)
Regulatory Liabilities (a)	13,718		8,793			6,404		(669		)	(1,019		)
Total Gain (Loss) on Risk Management Contracts	$	14,902	$	9,816		$	6,460	$	(318	)	$	(1,114	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,158		$	3,241		$	35		$	24		$	26
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(199		)	(158		)	(261		)	(198		)	(246		)
Maintenance Expense	(338		)	(135		)	(257		)	(160		)	(177		)
Purchased Electricity for Resale	740			332			—			—			—
Regulatory Assets (a)	1,275			(232		)	—			805			(1,422		)
Regulatory Liabilities (a)	28,600			5,839			(2,599		)	5,575			13,309
Total Gain (Loss) on Risk Management Contracts	$	31,591		$	9,892		$	(3,082	)	$	6,046		$	11,490

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	6,031	$	7,479		$	56	$	127		$	(56	)
Sales to AEP Affiliates	—		(521		)	—		521			—
Regulatory Assets (a)	4		—			—		(10		)	(13		)
Regulatory Liabilities (a)	46,050		27,110			41,503		(189		)	311
Total Gain on Risk Management Contracts	$	52,085	$	34,068		$	41,559	$	449		$	242


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

June 30, 2015



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,027
I&M	—		—		—		—		—		(13,871		)
OPCo	—		—		—		—		—		4,916
PSO	—		—		—		—		—		4,563
SWEPCo	—		—		—		—		—		(9,902		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	773		0
I&M	—		(1,214		)	0
OPCo	—		1,350			0
PSO	—		759			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


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

Collateral Required Under Various Triggering Events



	June 30, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	3,211	$	987
I&M	—		—		2,178		215
OPCo	—		—		—		—
PSO	—		—		244		6,783
SWEPCo	—		—		293		210



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166

Southwestern Electric Power Co [Member]



	June 30, 2015
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	6,795	$	—	$	6,715
I&M	4,609		—		4,554
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—



	December 31, 2014
	Liabilities for				Additional
	Contracts with Cross				Settlement
	Default Provisions				Liability if Cross
	Prior to Contractual		Amount of Cash		Default Provision
Company	Netting Arrangements		Collateral Posted		is Triggered
	(in thousands)
APCo	$	9,043	$	—	$	9,012
I&M	6,134		—		6,113
OPCo	—		—		—
PSO	—		—		—
SWEPCo	—		—		—

June 30, 2015



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	82,828		38,036		5,428		26,530		31,839
Coal	Tons	232		250		—		—		750
Natural Gas	MMBtus	339		227		—		12		14
Heating Oil and Gasoline	Gallons	1,468		695		1,546		852		975
Interest Rate	USD	$	3,590	$	2,435	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2014



Primary Risk Exposure	Unit of Measure	APCo		I&M		OPCo		PSO		SWEPCo
		(in thousands)
Commodity:
Power	MWhs	32,479		23,774		20,334		16,765		20,469
Coal	Tons	279		500		—		—		1,500
Natural Gas	MMBtus	421		286		—		—		—
Heating Oil and Gasoline	Gallons	1,089		521		1,108		614		699
Interest Rate	USD	$	5,094	$	3,455	$	—	$	—	$	—



	June 30, 2015				December 31, 2014
Company	Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities		Cash Collateral Received Netted Against Risk Management Assets		Cash Collateral Paid Netted Against Risk Management Liabilities
	(in thousands)
APCo	$	—	$	915	$	68	$	98
I&M	—		428		163		47
OPCo	—		121		—		102
PSO	—		115		—		54
SWEPCo	—		134		—		62

Amount of Gain (Loss) Recognized on Risk Management Contracts

SWEPCo

Fair Value of Derivative Instruments

June 30, 2015



	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	2,183		$	—	$	—	$	2,183		$	(106	)	$	2,077
Long-term Risk Management Assets	33			—		—		33			—			33
Total Assets	2,216			—		—		2,216			(106		)	2,110

Current Risk Management Liabilities	2,763			—		—		2,763			(240		)	2,523
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	2,763			—		—		2,763			(240		)	2,523

Total MTM Derivative Contract Net Assets (Liabilities)	$	(547	)	$	—	$	—	$	(547	)	$	134		$	(413	)

SWEPCo

Fair Value of Derivative Instruments

December 31, 2014



	Risk Management Contracts			Hedging Contracts				Gross Amounts of Risk Management Assets/ Liabilities Recognized			Gross Amounts Offset in the Statement of Financial Position (b)			Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position (c)
Balance Sheet Location	Commodity (a)			Commodity (a)		Interest Rate and Foreign Currency (a)
	(in thousands)
Current Risk Management Assets	$	471		$	—	$	—	$	471		$	(440	)	$	31
Long-term Risk Management Assets	—			—		—		—			—			—
Total Assets	471			—		—		471			(440		)	31

Current Risk Management Liabilities	1,584			—		—		1,584			(502		)	1,082
Long-term Risk Management Liabilities	—			—		—		—			—			—
Total Liabilities	1,584			—		—		1,584			(502		)	1,082

Total MTM Derivative Contract Net Assets (Liabilities)	$	(1,113	)	$	—	$	—	$	(1,113	)	$	62		$	(1,051	)


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


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


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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	480		$	619		$	35		$	35		$	43
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(80		)	(58		)	(111		)	(76		)	(99		)
Maintenance Expense	(133		)	(55		)	(114		)	(79		)	(84		)
Purchased Electricity for Resale	11			38			—			—			—
Regulatory Assets (a)	558			328			—			954			2,111
Regulatory Liabilities (a)	26,809			8,415			(7,272		)	6,242			9,350
Total Gain (Loss) on Risk Management Contracts	$	28,000		$	10,292		$	(7,462	)	$	7,076		$	11,321

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,184	$	1,323		$	56	$	63		$	(79	)
Sales to AEP Affiliates	—		(300		)	—		300			—
Regulatory Assets (a)	—		—			—		(12		)	(16		)
Regulatory Liabilities (a)	13,718		8,793			6,404		(669		)	(1,019		)
Total Gain (Loss) on Risk Management Contracts	$	14,902	$	9,816		$	6,460	$	(318	)	$	(1,114	)

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2015



Location of Gain (Loss)	APCo			I&M			OPCo			PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	1,158		$	3,241		$	35		$	24		$	26
Sales to AEP Affiliates	355			1,005			—			—			—
Other Operation Expense	(199		)	(158		)	(261		)	(198		)	(246		)
Maintenance Expense	(338		)	(135		)	(257		)	(160		)	(177		)
Purchased Electricity for Resale	740			332			—			—			—
Regulatory Assets (a)	1,275			(232		)	—			805			(1,422		)
Regulatory Liabilities (a)	28,600			5,839			(2,599		)	5,575			13,309
Total Gain (Loss) on Risk Management Contracts	$	31,591		$	9,892		$	(3,082	)	$	6,046		$	11,490

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Six Months Ended June 30, 2014



Location of Gain (Loss)	APCo		I&M			OPCo		PSO			SWEPCo
	(in thousands)
Electric Generation, Transmission and Distribution Revenues	$	6,031	$	7,479		$	56	$	127		$	(56	)
Sales to AEP Affiliates	—		(521		)	—		521			—
Regulatory Assets (a)	4		—			—		(10		)	(13		)
Regulatory Liabilities (a)	46,050		27,110			41,503		(189		)	311
Total Gain on Risk Management Contracts	$	52,085	$	34,068		$	41,559	$	449		$	242


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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

June 30, 2015



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	4,027
I&M	—		—		—		—		—		(13,871		)
OPCo	—		—		—		—		—		4,916
PSO	—		—		—		—		—		4,563
SWEPCo	—		—		—		—		—		(9,902		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency			Maximum Term for Exposure to Variability of Future Cash Flows
	(in thousands)					(in months)
APCo	$	—	$	773		0
I&M	—		(1,214		)	0
OPCo	—		1,350			0
PSO	—		759			0
SWEPCo	—		(1,728		)	0

Impact of Cash Flow Hedges on the Registrant Subsidiaries’

Condensed Balance Sheets

December 31, 2014



	Hedging Assets (a)				Hedging Liabilities (a)				AOCI Gain (Loss) Net of Tax
Company	Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency		Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	—	$	—	$	—	$	—	$	3,896
I&M	—		—		—		—		—		(14,406		)
OPCo	—		—		—		—		—		5,602
PSO	—		—		—		—		—		4,943
SWEPCo	—		—		—		—		—		(11,036		)



	Expected to be Reclassified to Net Income During the Next Twelve Months
Company	Commodity		Interest Rate and Foreign Currency
	(in thousands)
APCo	$	—	$	275
I&M	—		(1,090		)
OPCo	—		1,372
PSO	—		759
SWEPCo	—		(1,998		)


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

Collateral Required Under Various Triggering Events



	June 30, 2015
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	3,211	$	987
I&M	—		—		2,178		215
OPCo	—		—		—		—
PSO	—		—		244		6,783
SWEPCo	—		—		293		210



	December 31, 2014
			Amount of Collateral
			the Registrant Subsidiaries
			Would Have Been Required
	Fair Value		to Post for Derivative		Amount of Collateral		Amount of
	of Contracts		Contracts as well as Non-		the Registrant Subsidiaries		Collateral
	with Credit		Derivative Contracts Subject		Would Have Been Required		Attributable to
	Downgrade		to the Same Master Netting		to Post Attributable to		Other
Company	Triggers		Arrangement		RTOs and ISOs		Contracts
	(in thousands)
APCo	$	—	$	—	$	6,339	$	74
I&M	—		—		4,299		47
OPCo	—		—		—		—
PSO	—		—		693		4,111
SWEPCo	—		—		877		166