Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2016

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

September 30, 2016

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	398.7		66.4		22.4		11.3		18.3		21.8
Coal	Tons	2.1		—		0.7		—		—		1.4
Natural Gas	MMBtus	37.3		—		—		—		—		—
Heating Oil and Gasoline	Gallons	6.9		1.3		0.6		1.5		0.8		0.9
Interest Rate	USD	$	82.2	$	0.1	$	0.1	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	505.2	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2015

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	317.8		40.9		22.8		13.3		11.3		14.0
Coal	Tons	4.4		—		1.6		—		—		2.8
Natural Gas	MMBtus	38.2		0.3		0.2		—		0.2		0.2
Heating Oil and Gasoline	Gallons	7.4		1.4		0.7		1.6		0.8		0.9
Interest Rate	USD	$	113.5	$	2.4	$	1.6	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	560.3	$	—	$	—	$	—	$	—	$	—

Cash Collateral Netting

	September 30, 2016				December 31, 2015
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in millions)
AEP	$	7.1	$	36.0	$	5.8	$	44.4
APCo	0.1		0.1		—		3.1
I&M	—		0.3		—		0.6
OPCo	—		—		—		0.5
PSO	—		—		—		0.3
SWEPCo	—		—		—		0.3

Fair Value of Derivative Instruments

AEP

Fair Value of Derivative Instruments

September 30, 2016

	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	$	267.0	$	8.0		$	0.3		$	275.3	$	(164.5	)	$	110.8
Long-term Risk Management Assets	364.2		5.4			—			369.6		(57.9		)	311.7
Total Assets	631.2		13.4			0.3			644.9		(222.4		)	422.5
Current Risk Management Liabilities	241.5		6.6			0.2			248.3		(169.0		)	79.3
Long-term Risk Management Liabilities	273.3		48.7			0.3			322.3		(82.3		)	240.0
Total Liabilities	514.8		55.3			0.5			570.6		(251.3		)	319.3
Total MTM Derivative Contract Net Assets (Liabilities)	$	116.4	$	(41.9	)	$	(0.2	)	$	74.3	$	28.9		$	103.2
AEP
Fair Value of Derivative Instruments
December 31, 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	$	368.8	$	8.2		$	0.1		$	377.1	$	(242.7	)	$	134.4
Long-term Risk Management Assets	364.8		11.7			—			376.5		(54.7		)	321.8
Total Assets	733.6		19.9			0.1			753.6		(297.4		)	456.2
Current Risk Management Liabilities	347.0		9.1			0.3			356.4		(269.3		)	87.1
Long-term Risk Management Liabilities	223.3		19.3			3.2			245.8		(66.7		)	179.1
Total Liabilities	570.3		28.4			3.5			602.2		(336.0		)	266.2
Total MTM Derivative Contract Net Assets (Liabilities)	$	163.3	$	(8.5	)	$	(3.4	)	$	151.4	$	38.6		$	190.0

(a) Derivative instruments within these categories are reported gross.  These instruments are subject to master netting agreements and are presented on the 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M		OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	2.4		$	—		$	—	$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—		—			—			—
Generation & Marketing Revenues	9.2			—			—		—			—			—
Electric Generation, Transmission and Distribution Revenues	—			1.0			1.2		0.1			—			(0.1		)
Purchased Electricity for Resale	1.5			0.8			0.1		—			—			—
Other Operation Expense	(0.4		)	—			—		(0.1		)	—			—
Maintenance Expense	(0.4		)	(0.1		)	—		(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	(22.5		)	5.2			1.6		(95.4		)	0.1			2.8
Regulatory Liabilities (a)	28.6			16.9			5.5		—			0.8			3.7
Total Gain (Loss) on Risk Management Contracts	$	18.5		$	23.8		$	8.4	$	(95.5	)	$	0.8		$	6.3

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Transmission and Distribution Utilities Revenues	$	(0.9	)	$	—		$	—		$	—		$	—		$	—
Generation & Marketing Revenues	1.0			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.4		)	0.4			(0.9		)	—			—
Sales to AEP Affiliates	—			1.2			3.3			—			—			—
Purchased Electricity for Resale	1.6			0.8			—			—			—			—
Other Operation Expense	(0.7		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Maintenance Expense	(0.8		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	0.1			0.9			(1.0		)	—			(0.2		)	0.2
Regulatory Liabilities (a)	(20.3		)	3.2			(1.7		)	(22.3		)	(0.5		)	1.1
Total Gain (Loss) on Risk Management Contracts	$	(20.0	)	$	5.4		$	0.8		$	(23.4	)	$	(0.9	)	$	1.1

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	3.1		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—			—			—			—
Generation & Marketing Revenues	50.1			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.8		)	3.7			0.1			—			(0.1		)
Sales to AEP Affiliates	—			2.1			5.8			—			—			—
Purchased Electricity for Resale	4.9			2.7			0.2			—			—			—
Other Operation Expense	(1.3		)	(0.1		)	(0.1		)	(0.3		)	(0.1		)	(0.2		)
Maintenance Expense	(1.6		)	(0.3		)	(0.1		)	(0.3		)	(0.2		)	(0.2		)
Regulatory Assets (a)	(51.0		)	(7.2		)	3.0			(115.9		)	0.4			5.5
Regulatory Liabilities (a)	58.0			39.2			11.2			(15.2		)	3.2			14.7
Total Gain (Loss) on Risk Management Contracts	$	62.3		$	35.6		$	23.7		$	(131.6	)	$	3.3		$	19.7

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	6.7		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	(0.9		)	—			—			—			—			—
Generation & Marketing Revenues	59.9			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			0.8			3.6			(0.9		)	—			—
Sales to AEP Affiliates	—			1.5			4.3			—			—			—
Purchased Electricity for Resale	5.3			1.6			0.3			—			—			—
Other Operation Expense	(2.3		)	(0.3		)	(0.2		)	(0.4		)	(0.3		)	(0.4		)
Maintenance Expense	(2.2		)	(0.5		)	(0.2		)	(0.4		)	(0.2		)	(0.3		)
Regulatory Assets (a)	0.2			2.1			(1.2		)	—			0.6			(1.2		)
Regulatory Liabilities (a)	33.3			31.8			4.1			(24.8		)	5.1			14.5
Total Gain (Loss) on Risk Management Contracts	$	100.0		$	37.0		$	10.7		$	(26.5	)	$	5.2		$	12.6

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

Gain (Loss) on Hedging Instruments

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in millions)
Gain (Loss) on Fair Value Hedging Instruments	$	(1.1	)	$	3.7		$	3.0		$	6.8
Gain (Loss) on Fair Value Portion of Long-term Debt	1.1			(3.7		)	(3.0		)	(6.8		)

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on AEP’s Balance Sheets

	September 30, 2016						December 31, 2015
				Interest Rate						Interest Rate
				and Foreign						and Foreign
	Commodity			Currency			Commodity			Currency
	(in millions)
Hedging Assets (a)	$	6.5		$	—		$	17.6		$	—
Hedging Liabilities (a)	48.4			0.2			26.1			0.4
AOCI Gain (Loss) Net of Tax	(27.1		)	(16.1		)	(5.2		)	(17.2		)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months	0.9			(1.2		)	(0.4		)	(1.5		)

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

Collateral Required Under Various Triggering Events

	September 30, 2016					December 31, 2015
	Amount of Collateral		Amount of			Amount of Collateral		Amount of
	That Would		Collateral			That Would		Collateral
	Have Been Required		Attributable to			Have Been Required		Attributable to
	to Post Attributable to		Other			to Post Attributable to		Other
Company	RTOs and ISOs		Contracts			RTOs and ISOs		Contracts
	(in millions)
AEP	$	23.9	$	292.4	(a)	$	17.5	$	297.8	(a)
APCo	4.4		—			4.9		0.1
I&M	2.7		—			3.3		0.1
PSO	3.9		3.2			—		3.2
SWEPCo	4.7		0.1			—		0.1

(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 contacts.

Liabilities Subject to Cross Default Provisions

	September 30, 2016
	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 millions)
AEP	$	285.8	$	10.6	$	253.8
APCo	1.3		—		1.3
I&M	0.8		—		0.8

	December 31, 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 millions)
AEP	$	300.1	$	0.8	$	240.6
APCo	3.7		—		3.7
I&M	2.5		—		2.5

Appalachian Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

September 30, 2016

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	398.7		66.4		22.4		11.3		18.3		21.8
Coal	Tons	2.1		—		0.7		—		—		1.4
Natural Gas	MMBtus	37.3		—		—		—		—		—
Heating Oil and Gasoline	Gallons	6.9		1.3		0.6		1.5		0.8		0.9
Interest Rate	USD	$	82.2	$	0.1	$	0.1	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	505.2	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2015

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	317.8		40.9		22.8		13.3		11.3		14.0
Coal	Tons	4.4		—		1.6		—		—		2.8
Natural Gas	MMBtus	38.2		0.3		0.2		—		0.2		0.2
Heating Oil and Gasoline	Gallons	7.4		1.4		0.7		1.6		0.8		0.9
Interest Rate	USD	$	113.5	$	2.4	$	1.6	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	560.3	$	—	$	—	$	—	$	—	$	—

Cash Collateral Netting

	September 30, 2016				December 31, 2015
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in millions)
AEP	$	7.1	$	36.0	$	5.8	$	44.4
APCo	0.1		0.1		—		3.1
I&M	—		0.3		—		0.6
OPCo	—		—		—		0.5
PSO	—		—		—		0.3
SWEPCo	—		—		—		0.3

Fair Value of Derivative Instruments

APCo

Fair Value of Derivative Instruments

September 30, 2016

				Gross			Net Amounts of
				Amounts			Assets/Liabilities
	Risk			Offset in the			Presented in the
	Management			Statement of			Statement of
	Contracts -			Financial			Financial
Balance Sheet Location	Commodity (a)			Position (b)			Position (c)
	(in millions)
Current Risk Management Assets - Nonaffiliated	$	11.0		$	(7.8	)	$	3.2
Long-term Risk Management Assets - Nonaffiliated	1.0			(0.8		)	0.2
Total Assets	12.0			(8.6		)	3.4
Current Risk Management Liabilities - Nonaffiliated	18.5			(7.8		)	10.7
Long-term Risk Management Liabilities - Nonaffiliated	1.1			(0.8		)	0.3
Total Liabilities	19.6			(8.6		)	11.0
Total MTM Derivative Contract Net Liabilities	$	(7.6	)	$	—		$	(7.6	)

APCo

Fair Value of Derivative Instruments

December 31, 2015

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets - Nonaffiliated and Affiliated	$	25.9	$	(10.3	)	$	15.6
Long-term Risk Management Assets - Nonaffiliated	0.3		(0.2		)	0.1
Total Assets	26.2		(10.5		)	15.7
Current Risk Management Liabilities - Nonaffiliated	18.1		(13.3		)	4.8
Long-term Risk Management Liabilities - Nonaffiliated	0.3		(0.2		)	0.1
Total Liabilities	18.4		(13.5		)	4.9
Total MTM Derivative Contract Net Assets	$	7.8	$	3.0		$	10.8

(a) Derivative instruments within this category are reported gross.  These instruments are subject to master netting agreements and are presented on the 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M		OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	2.4		$	—		$	—	$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—		—			—			—
Generation & Marketing Revenues	9.2			—			—		—			—			—
Electric Generation, Transmission and Distribution Revenues	—			1.0			1.2		0.1			—			(0.1		)
Purchased Electricity for Resale	1.5			0.8			0.1		—			—			—
Other Operation Expense	(0.4		)	—			—		(0.1		)	—			—
Maintenance Expense	(0.4		)	(0.1		)	—		(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	(22.5		)	5.2			1.6		(95.4		)	0.1			2.8
Regulatory Liabilities (a)	28.6			16.9			5.5		—			0.8			3.7
Total Gain (Loss) on Risk Management Contracts	$	18.5		$	23.8		$	8.4	$	(95.5	)	$	0.8		$	6.3

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Transmission and Distribution Utilities Revenues	$	(0.9	)	$	—		$	—		$	—		$	—		$	—
Generation & Marketing Revenues	1.0			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.4		)	0.4			(0.9		)	—			—
Sales to AEP Affiliates	—			1.2			3.3			—			—			—
Purchased Electricity for Resale	1.6			0.8			—			—			—			—
Other Operation Expense	(0.7		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Maintenance Expense	(0.8		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	0.1			0.9			(1.0		)	—			(0.2		)	0.2
Regulatory Liabilities (a)	(20.3		)	3.2			(1.7		)	(22.3		)	(0.5		)	1.1
Total Gain (Loss) on Risk Management Contracts	$	(20.0	)	$	5.4		$	0.8		$	(23.4	)	$	(0.9	)	$	1.1

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	3.1		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—			—			—			—
Generation & Marketing Revenues	50.1			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.8		)	3.7			0.1			—			(0.1		)
Sales to AEP Affiliates	—			2.1			5.8			—			—			—
Purchased Electricity for Resale	4.9			2.7			0.2			—			—			—
Other Operation Expense	(1.3		)	(0.1		)	(0.1		)	(0.3		)	(0.1		)	(0.2		)
Maintenance Expense	(1.6		)	(0.3		)	(0.1		)	(0.3		)	(0.2		)	(0.2		)
Regulatory Assets (a)	(51.0		)	(7.2		)	3.0			(115.9		)	0.4			5.5
Regulatory Liabilities (a)	58.0			39.2			11.2			(15.2		)	3.2			14.7
Total Gain (Loss) on Risk Management Contracts	$	62.3		$	35.6		$	23.7		$	(131.6	)	$	3.3		$	19.7

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	6.7		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	(0.9		)	—			—			—			—			—
Generation & Marketing Revenues	59.9			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			0.8			3.6			(0.9		)	—			—
Sales to AEP Affiliates	—			1.5			4.3			—			—			—
Purchased Electricity for Resale	5.3			1.6			0.3			—			—			—
Other Operation Expense	(2.3		)	(0.3		)	(0.2		)	(0.4		)	(0.3		)	(0.4		)
Maintenance Expense	(2.2		)	(0.5		)	(0.2		)	(0.4		)	(0.2		)	(0.3		)
Regulatory Assets (a)	0.2			2.1			(1.2		)	—			0.6			(1.2		)
Regulatory Liabilities (a)	33.3			31.8			4.1			(24.8		)	5.1			14.5
Total Gain (Loss) on Risk Management Contracts	$	100.0		$	37.0		$	10.7		$	(26.5	)	$	5.2		$	12.6

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets

	September 30, 2016						December 31, 2015
	Interest Rate and Foreign Currency
				Expected to be						Expected to be
				Reclassified to						Reclassified to
				Net Income During						Net Income During
	AOCI Gain (Loss)			the Next			AOCI Gain (Loss)			the Next
Company	Net of Tax			Twelve Months			Net of Tax			Twelve Months
	(in millions)
APCo	$	3.0		$	0.7		$	3.6		$	0.7
I&M	(12.3		)	(1.3		)	(13.3		)	(1.3		)
OPCo	3.3			1.1			4.3			1.2
PSO	3.6			0.8			4.2			0.8
SWEPCo	(7.8		)	(1.5		)	(9.1		)	(1.7		)

Collateral Required Under Various Triggering Events

	September 30, 2016					December 31, 2015
	Amount of Collateral		Amount of			Amount of Collateral		Amount of
	That Would		Collateral			That Would		Collateral
	Have Been Required		Attributable to			Have Been Required		Attributable to
	to Post Attributable to		Other			to Post Attributable to		Other
Company	RTOs and ISOs		Contracts			RTOs and ISOs		Contracts
	(in millions)
AEP	$	23.9	$	292.4	(a)	$	17.5	$	297.8	(a)
APCo	4.4		—			4.9		0.1
I&M	2.7		—			3.3		0.1
PSO	3.9		3.2			—		3.2
SWEPCo	4.7		0.1			—		0.1

(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 contacts.

Liabilities Subject to Cross Default Provisions

	September 30, 2016
	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 millions)
AEP	$	285.8	$	10.6	$	253.8
APCo	1.3		—		1.3
I&M	0.8		—		0.8

	December 31, 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 millions)
AEP	$	300.1	$	0.8	$	240.6
APCo	3.7		—		3.7
I&M	2.5		—		2.5

Indiana Michigan Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

September 30, 2016

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	398.7		66.4		22.4		11.3		18.3		21.8
Coal	Tons	2.1		—		0.7		—		—		1.4
Natural Gas	MMBtus	37.3		—		—		—		—		—
Heating Oil and Gasoline	Gallons	6.9		1.3		0.6		1.5		0.8		0.9
Interest Rate	USD	$	82.2	$	0.1	$	0.1	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	505.2	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2015

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	317.8		40.9		22.8		13.3		11.3		14.0
Coal	Tons	4.4		—		1.6		—		—		2.8
Natural Gas	MMBtus	38.2		0.3		0.2		—		0.2		0.2
Heating Oil and Gasoline	Gallons	7.4		1.4		0.7		1.6		0.8		0.9
Interest Rate	USD	$	113.5	$	2.4	$	1.6	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	560.3	$	—	$	—	$	—	$	—	$	—

Cash Collateral Netting

	September 30, 2016				December 31, 2015
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in millions)
AEP	$	7.1	$	36.0	$	5.8	$	44.4
APCo	0.1		0.1		—		3.1
I&M	—		0.3		—		0.6
OPCo	—		—		—		0.5
PSO	—		—		—		0.3
SWEPCo	—		—		—		0.3

Fair Value of Derivative Instruments

I&M

Fair Value of Derivative Instruments

September 30, 2016

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets - Nonaffiliated	$	10.8	$	(5.6	)	$	5.2
Long-term Risk Management Assets - Nonaffiliated	0.6		(0.4		)	0.2
Total Assets	11.4		(6.0		)	5.4
Current Risk Management Liabilities - Nonaffiliated	7.2		(5.9		)	1.3
Long-term Risk Management Liabilities - Nonaffiliated	0.6		(0.4		)	0.2
Total Liabilities	7.8		(6.3		)	1.5
Total MTM Derivative Contract Net Assets	$	3.6	$	0.3		$	3.9

I&M

Fair Value of Derivative Instruments

December 31, 2015

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets - Nonaffiliated and Affiliated	$	22.8	$	(10.5	)	$	12.3
Long-term Risk Management Assets - Nonaffiliated	0.6		(0.6		)	—
Total Assets	23.4		(11.1		)	12.3
Current Risk Management Liabilities - Nonaffiliated	17.0		(10.7		)	6.3
Long-term Risk Management Liabilities - Nonaffiliated	2.6		(1.0		)	1.6
Total Liabilities	19.6		(11.7		)	7.9
Total MTM Derivative Contract Net Assets	$	3.8	$	0.6		$	4.4

(a) Derivative instruments within this category are reported gross.  These instruments are subject to master netting agreements and are presented on the 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M		OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	2.4		$	—		$	—	$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—		—			—			—
Generation & Marketing Revenues	9.2			—			—		—			—			—
Electric Generation, Transmission and Distribution Revenues	—			1.0			1.2		0.1			—			(0.1		)
Purchased Electricity for Resale	1.5			0.8			0.1		—			—			—
Other Operation Expense	(0.4		)	—			—		(0.1		)	—			—
Maintenance Expense	(0.4		)	(0.1		)	—		(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	(22.5		)	5.2			1.6		(95.4		)	0.1			2.8
Regulatory Liabilities (a)	28.6			16.9			5.5		—			0.8			3.7
Total Gain (Loss) on Risk Management Contracts	$	18.5		$	23.8		$	8.4	$	(95.5	)	$	0.8		$	6.3

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Transmission and Distribution Utilities Revenues	$	(0.9	)	$	—		$	—		$	—		$	—		$	—
Generation & Marketing Revenues	1.0			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.4		)	0.4			(0.9		)	—			—
Sales to AEP Affiliates	—			1.2			3.3			—			—			—
Purchased Electricity for Resale	1.6			0.8			—			—			—			—
Other Operation Expense	(0.7		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Maintenance Expense	(0.8		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	0.1			0.9			(1.0		)	—			(0.2		)	0.2
Regulatory Liabilities (a)	(20.3		)	3.2			(1.7		)	(22.3		)	(0.5		)	1.1
Total Gain (Loss) on Risk Management Contracts	$	(20.0	)	$	5.4		$	0.8		$	(23.4	)	$	(0.9	)	$	1.1

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	3.1		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—			—			—			—
Generation & Marketing Revenues	50.1			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.8		)	3.7			0.1			—			(0.1		)
Sales to AEP Affiliates	—			2.1			5.8			—			—			—
Purchased Electricity for Resale	4.9			2.7			0.2			—			—			—
Other Operation Expense	(1.3		)	(0.1		)	(0.1		)	(0.3		)	(0.1		)	(0.2		)
Maintenance Expense	(1.6		)	(0.3		)	(0.1		)	(0.3		)	(0.2		)	(0.2		)
Regulatory Assets (a)	(51.0		)	(7.2		)	3.0			(115.9		)	0.4			5.5
Regulatory Liabilities (a)	58.0			39.2			11.2			(15.2		)	3.2			14.7
Total Gain (Loss) on Risk Management Contracts	$	62.3		$	35.6		$	23.7		$	(131.6	)	$	3.3		$	19.7

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	6.7		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	(0.9		)	—			—			—			—			—
Generation & Marketing Revenues	59.9			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			0.8			3.6			(0.9		)	—			—
Sales to AEP Affiliates	—			1.5			4.3			—			—			—
Purchased Electricity for Resale	5.3			1.6			0.3			—			—			—
Other Operation Expense	(2.3		)	(0.3		)	(0.2		)	(0.4		)	(0.3		)	(0.4		)
Maintenance Expense	(2.2		)	(0.5		)	(0.2		)	(0.4		)	(0.2		)	(0.3		)
Regulatory Assets (a)	0.2			2.1			(1.2		)	—			0.6			(1.2		)
Regulatory Liabilities (a)	33.3			31.8			4.1			(24.8		)	5.1			14.5
Total Gain (Loss) on Risk Management Contracts	$	100.0		$	37.0		$	10.7		$	(26.5	)	$	5.2		$	12.6

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets

	September 30, 2016						December 31, 2015
	Interest Rate and Foreign Currency
				Expected to be						Expected to be
				Reclassified to						Reclassified to
				Net Income During						Net Income During
	AOCI Gain (Loss)			the Next			AOCI Gain (Loss)			the Next
Company	Net of Tax			Twelve Months			Net of Tax			Twelve Months
	(in millions)
APCo	$	3.0		$	0.7		$	3.6		$	0.7
I&M	(12.3		)	(1.3		)	(13.3		)	(1.3		)
OPCo	3.3			1.1			4.3			1.2
PSO	3.6			0.8			4.2			0.8
SWEPCo	(7.8		)	(1.5		)	(9.1		)	(1.7		)

Collateral Required Under Various Triggering Events

	September 30, 2016					December 31, 2015
	Amount of Collateral		Amount of			Amount of Collateral		Amount of
	That Would		Collateral			That Would		Collateral
	Have Been Required		Attributable to			Have Been Required		Attributable to
	to Post Attributable to		Other			to Post Attributable to		Other
Company	RTOs and ISOs		Contracts			RTOs and ISOs		Contracts
	(in millions)
AEP	$	23.9	$	292.4	(a)	$	17.5	$	297.8	(a)
APCo	4.4		—			4.9		0.1
I&M	2.7		—			3.3		0.1
PSO	3.9		3.2			—		3.2
SWEPCo	4.7		0.1			—		0.1

(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 contacts.

Liabilities Subject to Cross Default Provisions

	September 30, 2016
	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 millions)
AEP	$	285.8	$	10.6	$	253.8
APCo	1.3		—		1.3
I&M	0.8		—		0.8

	December 31, 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 millions)
AEP	$	300.1	$	0.8	$	240.6
APCo	3.7		—		3.7
I&M	2.5		—		2.5

Ohio Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

September 30, 2016

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	398.7		66.4		22.4		11.3		18.3		21.8
Coal	Tons	2.1		—		0.7		—		—		1.4
Natural Gas	MMBtus	37.3		—		—		—		—		—
Heating Oil and Gasoline	Gallons	6.9		1.3		0.6		1.5		0.8		0.9
Interest Rate	USD	$	82.2	$	0.1	$	0.1	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	505.2	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2015

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	317.8		40.9		22.8		13.3		11.3		14.0
Coal	Tons	4.4		—		1.6		—		—		2.8
Natural Gas	MMBtus	38.2		0.3		0.2		—		0.2		0.2
Heating Oil and Gasoline	Gallons	7.4		1.4		0.7		1.6		0.8		0.9
Interest Rate	USD	$	113.5	$	2.4	$	1.6	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	560.3	$	—	$	—	$	—	$	—	$	—

Cash Collateral Netting

	September 30, 2016				December 31, 2015
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in millions)
AEP	$	7.1	$	36.0	$	5.8	$	44.4
APCo	0.1		0.1		—		3.1
I&M	—		0.3		—		0.6
OPCo	—		—		—		0.5
PSO	—		—		—		0.3
SWEPCo	—		—		—		0.3

Fair Value of Derivative Instruments

OPCo

Fair Value of Derivative Instruments

September 30, 2016

				Gross			Net Amounts of
				Amounts			Assets/Liabilities
	Risk			Offset in the			Presented in the
	Management			Statement of			Statement of
	Contracts -			Financial			Financial
Balance Sheet Location	Commodity (a)			Position (b)			Position (c)
	(in millions)
Current Risk Management Assets	$	0.1		$	(0.1	)	$	—
Long-term Risk Management Assets	—			—			—
Total Assets	0.1			(0.1		)	—
Current Risk Management Liabilities	5.7			(0.1		)	5.6
Long-term Risk Management Liabilities	103.5			—			103.5
Total Liabilities	109.2			(0.1		)	109.1
Total MTM Derivative Contract Net Liabilities	$	(109.1	)	$	—		$	(109.1	)

OPCo

Fair Value of Derivative Instruments

December 31, 2015

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets	$	—	$	—		$	—
Long-term Risk Management Assets	19.2		—			19.2
Total Assets	19.2		—			19.2
Current Risk Management Liabilities	4.1		(0.5		)	3.6
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	4.1		(0.5		)	3.6
Total MTM Derivative Contract Net Assets	$	15.1	$	0.5		$	15.6

(a) Derivative instruments within this category are reported gross.  These instruments are subject to master netting agreements and are presented on the 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M		OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	2.4		$	—		$	—	$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—		—			—			—
Generation & Marketing Revenues	9.2			—			—		—			—			—
Electric Generation, Transmission and Distribution Revenues	—			1.0			1.2		0.1			—			(0.1		)
Purchased Electricity for Resale	1.5			0.8			0.1		—			—			—
Other Operation Expense	(0.4		)	—			—		(0.1		)	—			—
Maintenance Expense	(0.4		)	(0.1		)	—		(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	(22.5		)	5.2			1.6		(95.4		)	0.1			2.8
Regulatory Liabilities (a)	28.6			16.9			5.5		—			0.8			3.7
Total Gain (Loss) on Risk Management Contracts	$	18.5		$	23.8		$	8.4	$	(95.5	)	$	0.8		$	6.3

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Transmission and Distribution Utilities Revenues	$	(0.9	)	$	—		$	—		$	—		$	—		$	—
Generation & Marketing Revenues	1.0			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.4		)	0.4			(0.9		)	—			—
Sales to AEP Affiliates	—			1.2			3.3			—			—			—
Purchased Electricity for Resale	1.6			0.8			—			—			—			—
Other Operation Expense	(0.7		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Maintenance Expense	(0.8		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	0.1			0.9			(1.0		)	—			(0.2		)	0.2
Regulatory Liabilities (a)	(20.3		)	3.2			(1.7		)	(22.3		)	(0.5		)	1.1
Total Gain (Loss) on Risk Management Contracts	$	(20.0	)	$	5.4		$	0.8		$	(23.4	)	$	(0.9	)	$	1.1

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	3.1		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—			—			—			—
Generation & Marketing Revenues	50.1			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.8		)	3.7			0.1			—			(0.1		)
Sales to AEP Affiliates	—			2.1			5.8			—			—			—
Purchased Electricity for Resale	4.9			2.7			0.2			—			—			—
Other Operation Expense	(1.3		)	(0.1		)	(0.1		)	(0.3		)	(0.1		)	(0.2		)
Maintenance Expense	(1.6		)	(0.3		)	(0.1		)	(0.3		)	(0.2		)	(0.2		)
Regulatory Assets (a)	(51.0		)	(7.2		)	3.0			(115.9		)	0.4			5.5
Regulatory Liabilities (a)	58.0			39.2			11.2			(15.2		)	3.2			14.7
Total Gain (Loss) on Risk Management Contracts	$	62.3		$	35.6		$	23.7		$	(131.6	)	$	3.3		$	19.7

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	6.7		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	(0.9		)	—			—			—			—			—
Generation & Marketing Revenues	59.9			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			0.8			3.6			(0.9		)	—			—
Sales to AEP Affiliates	—			1.5			4.3			—			—			—
Purchased Electricity for Resale	5.3			1.6			0.3			—			—			—
Other Operation Expense	(2.3		)	(0.3		)	(0.2		)	(0.4		)	(0.3		)	(0.4		)
Maintenance Expense	(2.2		)	(0.5		)	(0.2		)	(0.4		)	(0.2		)	(0.3		)
Regulatory Assets (a)	0.2			2.1			(1.2		)	—			0.6			(1.2		)
Regulatory Liabilities (a)	33.3			31.8			4.1			(24.8		)	5.1			14.5
Total Gain (Loss) on Risk Management Contracts	$	100.0		$	37.0		$	10.7		$	(26.5	)	$	5.2		$	12.6

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets

	September 30, 2016						December 31, 2015
	Interest Rate and Foreign Currency
				Expected to be						Expected to be
				Reclassified to						Reclassified to
				Net Income During						Net Income During
	AOCI Gain (Loss)			the Next			AOCI Gain (Loss)			the Next
Company	Net of Tax			Twelve Months			Net of Tax			Twelve Months
	(in millions)
APCo	$	3.0		$	0.7		$	3.6		$	0.7
I&M	(12.3		)	(1.3		)	(13.3		)	(1.3		)
OPCo	3.3			1.1			4.3			1.2
PSO	3.6			0.8			4.2			0.8
SWEPCo	(7.8		)	(1.5		)	(9.1		)	(1.7		)

Public Service Co Of Oklahoma [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

September 30, 2016

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	398.7		66.4		22.4		11.3		18.3		21.8
Coal	Tons	2.1		—		0.7		—		—		1.4
Natural Gas	MMBtus	37.3		—		—		—		—		—
Heating Oil and Gasoline	Gallons	6.9		1.3		0.6		1.5		0.8		0.9
Interest Rate	USD	$	82.2	$	0.1	$	0.1	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	505.2	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2015

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	317.8		40.9		22.8		13.3		11.3		14.0
Coal	Tons	4.4		—		1.6		—		—		2.8
Natural Gas	MMBtus	38.2		0.3		0.2		—		0.2		0.2
Heating Oil and Gasoline	Gallons	7.4		1.4		0.7		1.6		0.8		0.9
Interest Rate	USD	$	113.5	$	2.4	$	1.6	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	560.3	$	—	$	—	$	—	$	—	$	—

Cash Collateral Netting

	September 30, 2016				December 31, 2015
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in millions)
AEP	$	7.1	$	36.0	$	5.8	$	44.4
APCo	0.1		0.1		—		3.1
I&M	—		0.3		—		0.6
OPCo	—		—		—		0.5
PSO	—		—		—		0.3
SWEPCo	—		—		—		0.3

Fair Value of Derivative Instruments

PSO

Fair Value of Derivative Instruments

September 30, 2016

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets	$	1.2	$	(0.1	)	$	1.1
Long-term Risk Management Assets	—		—			—
Total Assets	1.2		(0.1		)	1.1
Current Risk Management Liabilities	0.1		(0.1		)	—
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	0.1		(0.1		)	—
Total MTM Derivative Contract Net Assets	$	1.1	$	—		$	1.1

PSO

Fair Value of Derivative Instruments

December 31, 2015

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets	$	0.6	$	—		$	0.6
Long-term Risk Management Assets	—		—			—
Total Assets	0.6		—			0.6
Current Risk Management Liabilities	0.5		(0.3		)	0.2
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	0.5		(0.3		)	0.2
Total MTM Derivative Contract Net Assets	$	0.1	$	0.3		$	0.4

(a) Derivative instruments within this category are reported gross.  These instruments are subject to master netting agreements and are presented on the 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M		OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	2.4		$	—		$	—	$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—		—			—			—
Generation & Marketing Revenues	9.2			—			—		—			—			—
Electric Generation, Transmission and Distribution Revenues	—			1.0			1.2		0.1			—			(0.1		)
Purchased Electricity for Resale	1.5			0.8			0.1		—			—			—
Other Operation Expense	(0.4		)	—			—		(0.1		)	—			—
Maintenance Expense	(0.4		)	(0.1		)	—		(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	(22.5		)	5.2			1.6		(95.4		)	0.1			2.8
Regulatory Liabilities (a)	28.6			16.9			5.5		—			0.8			3.7
Total Gain (Loss) on Risk Management Contracts	$	18.5		$	23.8		$	8.4	$	(95.5	)	$	0.8		$	6.3

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Transmission and Distribution Utilities Revenues	$	(0.9	)	$	—		$	—		$	—		$	—		$	—
Generation & Marketing Revenues	1.0			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.4		)	0.4			(0.9		)	—			—
Sales to AEP Affiliates	—			1.2			3.3			—			—			—
Purchased Electricity for Resale	1.6			0.8			—			—			—			—
Other Operation Expense	(0.7		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Maintenance Expense	(0.8		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	0.1			0.9			(1.0		)	—			(0.2		)	0.2
Regulatory Liabilities (a)	(20.3		)	3.2			(1.7		)	(22.3		)	(0.5		)	1.1
Total Gain (Loss) on Risk Management Contracts	$	(20.0	)	$	5.4		$	0.8		$	(23.4	)	$	(0.9	)	$	1.1

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	3.1		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—			—			—			—
Generation & Marketing Revenues	50.1			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.8		)	3.7			0.1			—			(0.1		)
Sales to AEP Affiliates	—			2.1			5.8			—			—			—
Purchased Electricity for Resale	4.9			2.7			0.2			—			—			—
Other Operation Expense	(1.3		)	(0.1		)	(0.1		)	(0.3		)	(0.1		)	(0.2		)
Maintenance Expense	(1.6		)	(0.3		)	(0.1		)	(0.3		)	(0.2		)	(0.2		)
Regulatory Assets (a)	(51.0		)	(7.2		)	3.0			(115.9		)	0.4			5.5
Regulatory Liabilities (a)	58.0			39.2			11.2			(15.2		)	3.2			14.7
Total Gain (Loss) on Risk Management Contracts	$	62.3		$	35.6		$	23.7		$	(131.6	)	$	3.3		$	19.7

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	6.7		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	(0.9		)	—			—			—			—			—
Generation & Marketing Revenues	59.9			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			0.8			3.6			(0.9		)	—			—
Sales to AEP Affiliates	—			1.5			4.3			—			—			—
Purchased Electricity for Resale	5.3			1.6			0.3			—			—			—
Other Operation Expense	(2.3		)	(0.3		)	(0.2		)	(0.4		)	(0.3		)	(0.4		)
Maintenance Expense	(2.2		)	(0.5		)	(0.2		)	(0.4		)	(0.2		)	(0.3		)
Regulatory Assets (a)	0.2			2.1			(1.2		)	—			0.6			(1.2		)
Regulatory Liabilities (a)	33.3			31.8			4.1			(24.8		)	5.1			14.5
Total Gain (Loss) on Risk Management Contracts	$	100.0		$	37.0		$	10.7		$	(26.5	)	$	5.2		$	12.6

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets

	September 30, 2016						December 31, 2015
	Interest Rate and Foreign Currency
				Expected to be						Expected to be
				Reclassified to						Reclassified to
				Net Income During						Net Income During
	AOCI Gain (Loss)			the Next			AOCI Gain (Loss)			the Next
Company	Net of Tax			Twelve Months			Net of Tax			Twelve Months
	(in millions)
APCo	$	3.0		$	0.7		$	3.6		$	0.7
I&M	(12.3		)	(1.3		)	(13.3		)	(1.3		)
OPCo	3.3			1.1			4.3			1.2
PSO	3.6			0.8			4.2			0.8
SWEPCo	(7.8		)	(1.5		)	(9.1		)	(1.7		)

Collateral Required Under Various Triggering Events

	September 30, 2016					December 31, 2015
	Amount of Collateral		Amount of			Amount of Collateral		Amount of
	That Would		Collateral			That Would		Collateral
	Have Been Required		Attributable to			Have Been Required		Attributable to
	to Post Attributable to		Other			to Post Attributable to		Other
Company	RTOs and ISOs		Contracts			RTOs and ISOs		Contracts
	(in millions)
AEP	$	23.9	$	292.4	(a)	$	17.5	$	297.8	(a)
APCo	4.4		—			4.9		0.1
I&M	2.7		—			3.3		0.1
PSO	3.9		3.2			—		3.2
SWEPCo	4.7		0.1			—		0.1

(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 contacts.

Southwestern Electric Power Co [Member]

Notional Volume of Derivative Instruments

Notional Volume of Derivative Instruments

September 30, 2016

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	398.7		66.4		22.4		11.3		18.3		21.8
Coal	Tons	2.1		—		0.7		—		—		1.4
Natural Gas	MMBtus	37.3		—		—		—		—		—
Heating Oil and Gasoline	Gallons	6.9		1.3		0.6		1.5		0.8		0.9
Interest Rate	USD	$	82.2	$	0.1	$	0.1	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	505.2	$	—	$	—	$	—	$	—	$	—

Notional Volume of Derivative Instruments

December 31, 2015

Primary Risk Exposure	Unit of Measure	AEP		APCo		I&M		OPCo		PSO		SWEPCo
		(in millions)
Commodity:
Power	MWhs	317.8		40.9		22.8		13.3		11.3		14.0
Coal	Tons	4.4		—		1.6		—		—		2.8
Natural Gas	MMBtus	38.2		0.3		0.2		—		0.2		0.2
Heating Oil and Gasoline	Gallons	7.4		1.4		0.7		1.6		0.8		0.9
Interest Rate	USD	$	113.5	$	2.4	$	1.6	$	—	$	—	$	—
Interest Rate and Foreign Currency	USD	$	560.3	$	—	$	—	$	—	$	—	$	—

Cash Collateral Netting

	September 30, 2016				December 31, 2015
	Cash Collateral		Cash Collateral		Cash Collateral		Cash Collateral
	Received		Paid		Received		Paid
	Netted Against		Netted Against		Netted Against		Netted Against
	Risk Management		Risk Management		Risk Management		Risk Management
Company	Assets		Liabilities		Assets		Liabilities
	(in millions)
AEP	$	7.1	$	36.0	$	5.8	$	44.4
APCo	0.1		0.1		—		3.1
I&M	—		0.3		—		0.6
OPCo	—		—		—		0.5
PSO	—		—		—		0.3
SWEPCo	—		—		—		0.3

Fair Value of Derivative Instruments

SWEPCo

Fair Value of Derivative Instruments

September 30, 2016

			Gross			Net Amounts of
			Amounts			Assets/Liabilities
	Risk		Offset in the			Presented in the
	Management		Statement of			Statement of
	Contracts -		Financial			Financial
Balance Sheet Location	Commodity (a)		Position (b)			Position (c)
	(in millions)
Current Risk Management Assets	$	1.5	$	(0.1	)	$	1.4
Long-term Risk Management Assets	—		—			—
Total Assets	1.5		(0.1		)	1.4
Current Risk Management Liabilities	0.1		(0.1		)	—
Long-term Risk Management Liabilities	—		—			—
Total Liabilities	0.1		(0.1		)	—
Total MTM Derivative Contract Net Assets	$	1.4	$	—		$	1.4

SWEPCo

Fair Value of Derivative Instruments

December 31, 2015

				Gross			Net Amounts of
				Amounts			Assets/Liabilities
	Risk			Offset in the			Presented in the
	Management			Statement of			Statement of
	Contracts -			Financial			Financial
Balance Sheet Location	Commodity (a)			Position (b)			Position (c)
	(in millions)
Current Risk Management Assets	$	0.8		$	—		$	0.8
Long-term Risk Management Assets	—			—			—
Total Assets	0.8			—			0.8
Current Risk Management Liabilities	3.4			(0.3		)	3.1
Long-term Risk Management Liabilities	2.1			—			2.1
Total Liabilities	5.5			(0.3		)	5.2
Total MTM Derivative Contract Net Assets (Liabilities)	$	(4.7	)	$	0.3		$	(4.4	)

(a) Derivative instruments within this category are reported gross.  These instruments are subject to master netting agreements and are presented on the 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

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M		OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	2.4		$	—		$	—	$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—		—			—			—
Generation & Marketing Revenues	9.2			—			—		—			—			—
Electric Generation, Transmission and Distribution Revenues	—			1.0			1.2		0.1			—			(0.1		)
Purchased Electricity for Resale	1.5			0.8			0.1		—			—			—
Other Operation Expense	(0.4		)	—			—		(0.1		)	—			—
Maintenance Expense	(0.4		)	(0.1		)	—		(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	(22.5		)	5.2			1.6		(95.4		)	0.1			2.8
Regulatory Liabilities (a)	28.6			16.9			5.5		—			0.8			3.7
Total Gain (Loss) on Risk Management Contracts	$	18.5		$	23.8		$	8.4	$	(95.5	)	$	0.8		$	6.3

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Three Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Transmission and Distribution Utilities Revenues	$	(0.9	)	$	—		$	—		$	—		$	—		$	—
Generation & Marketing Revenues	1.0			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.4		)	0.4			(0.9		)	—			—
Sales to AEP Affiliates	—			1.2			3.3			—			—			—
Purchased Electricity for Resale	1.6			0.8			—			—			—			—
Other Operation Expense	(0.7		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Maintenance Expense	(0.8		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Regulatory Assets (a)	0.1			0.9			(1.0		)	—			(0.2		)	0.2
Regulatory Liabilities (a)	(20.3		)	3.2			(1.7		)	(22.3		)	(0.5		)	1.1
Total Gain (Loss) on Risk Management Contracts	$	(20.0	)	$	5.4		$	0.8		$	(23.4	)	$	(0.9	)	$	1.1

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2016

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utility Revenues	$	3.1		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	0.1			—			—			—			—			—
Generation & Marketing Revenues	50.1			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			(0.8		)	3.7			0.1			—			(0.1		)
Sales to AEP Affiliates	—			2.1			5.8			—			—			—
Purchased Electricity for Resale	4.9			2.7			0.2			—			—			—
Other Operation Expense	(1.3		)	(0.1		)	(0.1		)	(0.3		)	(0.1		)	(0.2		)
Maintenance Expense	(1.6		)	(0.3		)	(0.1		)	(0.3		)	(0.2		)	(0.2		)
Regulatory Assets (a)	(51.0		)	(7.2		)	3.0			(115.9		)	0.4			5.5
Regulatory Liabilities (a)	58.0			39.2			11.2			(15.2		)	3.2			14.7
Total Gain (Loss) on Risk Management Contracts	$	62.3		$	35.6		$	23.7		$	(131.6	)	$	3.3		$	19.7

Amount of Gain (Loss) Recognized on

Risk Management Contracts

For the Nine Months Ended September 30, 2015

Location of Gain (Loss)	AEP			APCo			I&M			OPCo			PSO			SWEPCo
	(in millions)
Vertically Integrated Utilities Revenues	$	6.7		$	—		$	—		$	—		$	—		$	—
Transmission and Distribution Utilities Revenues	(0.9		)	—			—			—			—			—
Generation & Marketing Revenues	59.9			—			—			—			—			—
Electric Generation, Transmission and Distribution Revenues	—			0.8			3.6			(0.9		)	—			—
Sales to AEP Affiliates	—			1.5			4.3			—			—			—
Purchased Electricity for Resale	5.3			1.6			0.3			—			—			—
Other Operation Expense	(2.3		)	(0.3		)	(0.2		)	(0.4		)	(0.3		)	(0.4		)
Maintenance Expense	(2.2		)	(0.5		)	(0.2		)	(0.4		)	(0.2		)	(0.3		)
Regulatory Assets (a)	0.2			2.1			(1.2		)	—			0.6			(1.2		)
Regulatory Liabilities (a)	33.3			31.8			4.1			(24.8		)	5.1			14.5
Total Gain (Loss) on Risk Management Contracts	$	100.0		$	37.0		$	10.7		$	(26.5	)	$	5.2		$	12.6

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

Impact of Cash Flow Hedges on the Condensed Balance Sheet

Impact of Cash Flow Hedges on the Registrant Subsidiaries’ Balance Sheets

	September 30, 2016						December 31, 2015
	Interest Rate and Foreign Currency
				Expected to be						Expected to be
				Reclassified to						Reclassified to
				Net Income During						Net Income During
	AOCI Gain (Loss)			the Next			AOCI Gain (Loss)			the Next
Company	Net of Tax			Twelve Months			Net of Tax			Twelve Months
	(in millions)
APCo	$	3.0		$	0.7		$	3.6		$	0.7
I&M	(12.3		)	(1.3		)	(13.3		)	(1.3		)
OPCo	3.3			1.1			4.3			1.2
PSO	3.6			0.8			4.2			0.8
SWEPCo	(7.8		)	(1.5		)	(9.1		)	(1.7		)

Collateral Required Under Various Triggering Events

	September 30, 2016					December 31, 2015
	Amount of Collateral		Amount of			Amount of Collateral		Amount of
	That Would		Collateral			That Would		Collateral
	Have Been Required		Attributable to			Have Been Required		Attributable to
	to Post Attributable to		Other			to Post Attributable to		Other
Company	RTOs and ISOs		Contracts			RTOs and ISOs		Contracts
	(in millions)
AEP	$	23.9	$	292.4	(a)	$	17.5	$	297.8	(a)
APCo	4.4		—			4.9		0.1
I&M	2.7		—			3.3		0.1
PSO	3.9		3.2			—		3.2
SWEPCo	4.7		0.1			—		0.1

(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 contacts.