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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant And Equipment [Abstract]

15. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

We provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class as follows:

2011	Regulated												Nonregulated
						Annual											Annual
Functional	Property,					Composite							Property,				Composite
Class of	Plant and			Accumulated		Depreciation				Depreciable			Plant and		Accumulated		Depreciation				Depreciable
Property	Equipment			Depreciation		Rate Ranges				Life Ranges			Equipment		Depreciation		Rate Ranges				Life Ranges
	(in millions)									(in years)			(in millions)								(in years)
Generation	$	14,804		$	6,692	1.6	-	3.8	%	9	-	132	$	10,134	$	3,904	2.6	-	3.5	%	20	-	66
Transmission		9,048			2,600	1.3	-	2.7	%	25	-	87		-		-	-	-	-	%	-	-	-
Distribution		14,783			3,828	2.4	-	4.0	%	11	-	75		-		-	-	-	-	%	-	-	-
CWIP		2,913	(a)		36	NM				NM				208		1	NM				NM
Other		2,587			1,246	1.7	-	9.3	%	5	-	55		1,193		392	NM				NM
Total	$	44,135		$	14,402								$	11,535	$	4,297

2010	Regulated												Nonregulated
						Annual											Annual
Functional	Property,					Composite							Property,				Composite
Class of	Plant and			Accumulated		Depreciation				Depreciable			Plant and		Accumulated		Depreciation				Depreciable
Property	Equipment			Depreciation		Rate Ranges				Life Ranges			Equipment		Depreciation		Rate Ranges				Life Ranges
	(in millions)									(in years)			(in millions)								(in years)
Generation	$	14,147		$	6,537	1.6	-	3.8	%	9	-	132	$	10,205	$	3,788	2.2	-	5.1	%	20	-	70
Transmission		8,576			2,481	1.4	-	3.0	%	25	-	87		-		-	-	-	-	%	-	-	-
Distribution		14,208			3,607	2.4	-	3.9	%	11	-	75		-		-	-	-	-	%	-	-	-
CWIP		2,615	(a)		47	NM				NM				143		9	NM				NM
Other		2,685			1,268	3.0	-	12.5	%	5	-	55		1,161		329	NM				NM
Total	$	42,231		$	13,940								$	11,509	$	4,126

2009		Regulated							Nonregulated
		Annual							Annual
		Composite							Composite
		Depreciation				Depreciable			Depreciation				Depreciable
Functional Class of Property		Rate Ranges				Life Ranges			Rate Ranges				Life Ranges
						(in years)							(in years)
Generation		1.6	-	3.8	%	9	-	132	1.9	-	3.3	%	20	-	70
Transmission		1.4	-	2.7	%	25	-	87	-	-	-	%	-	-	-
Distribution		2.4	-	3.9	%	11	-	75	-	-	-	%	-	-	-
CWIP		NM				NM			NM				NM
Other		4.2	-	12.8	%	5	-	55	NM				NM

(a)	Includes CWIP related to SWEPCo's Arkansas jurisdictional share of the Turk Plant.
NM	Not Meaningful

We provide for depreciation, depletion and amortization of coal-mining assets over each asset's estimated useful life or the estimated life of each mine, whichever is shorter, using the straight-line method for mining structures and equipment. We use either the straight-line method or the units-of-production method to amortize mine development costs and deplete coal rights based on estimated recoverable tonnages. We include these costs in the cost of coal charged to fuel expense.

For rate-regulated operations, the composite depreciation rate generally includes a component for non-asset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability. For nonregulated operations, non-ARO removal costs are expensed as incurred.

Asset Retirement Obligations (ARO)

We record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for our legal obligations for asbestos removal and for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant, wind farms and certain coal mining facilities, as well as for nuclear decommissioning of our Cook Plant. We have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which we have assets. Generally, such easements are perpetual and require only the retirement and removal of our assets upon the cessation of the property's use. We do not estimate the retirement for such easements because we plan to use our facilities indefinitely. The retirement obligation would only be recognized if and when we abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2011 and 2010 aggregate carrying amounts of ARO:

	Carrying
	Amount
	of ARO
	(in millions)
ARO at December 31, 2009	$	1,259
DHLC Deconsolidation (a)		(12)
Accretion Expense		75
Liabilities Incurred		32
Liabilities Settled		(20)
Revisions in Cash Flow Estimates		64
ARO at December 31, 2010 (b)		1,398
Accretion Expense		82
Liabilities Incurred		7
Liabilities Settled		(26)
Revisions in Cash Flow Estimates		13
ARO at December 31, 2011 (c)	$	1,474

(a) We deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for "Consolidations." As a result, we record only 50% of the final reclamation based on our share of the obligation instead of the previous 100%.

(b) The current portion of our ARO, totaling $4 million, is included in Other Current Liabilities on our 2010 balance sheet.

(c) The current portion of our ARO, totaling $2 million, is included in Other Current Liabilities on our 2011 balance sheet.

As of December 31, 2011 and 2010, our ARO liability was $1.5 billion and $1.4 billion, respectively, and included $979 million and $930 million, respectively, for nuclear decommissioning of the Cook Plant. As of December 31, 2011 and 2010, the fair value of assets that are legally restricted for purposes of settling the nuclear decommissioning liabilities totaled $1.3 billion and $1.2 billion, respectively, and are recorded in Spent Nuclear Fuel and Decommissioning Trusts on our balance sheets.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

Our amounts of allowance for borrowed, including interest capitalized, and equity funds used during construction is summarized in the following table:

	Years Ended December 31,
	2011		2010		2009
	(in millions)
Allowance for Equity Funds Used During Construction	$	98	$	77	$	82
Allowance for Borrowed Funds Used During Construction		63		53		67

Jointly-owned Electric Facilities

We have electric facilities that are jointly-owned with nonaffiliated companies. Using our own financing, we are obligated to pay a share of the costs of these jointly-owned facilities in the same proportion as our ownership interest. Our proportionate share of the operating costs associated with such facilities is included in our statements of income and the investments and accumulated depreciation are reflected in our balance sheets under Property, Plant and Equipment as follows:

				Company’s Share at December 31, 2011
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
	Type	Ownership		in Service		Progress		Depreciation
				(in millions)
W.C. Beckjord Generating Station (Unit No. 6) (a)	Coal	12.5	%	$	19	$	-	$	8
Conesville Generating Station (Unit No. 4) (b)	Coal	43.5	%		310		12		54
J.M. Stuart Generating Station (c)	Coal	26.0	%		529		13		172
Wm. H. Zimmer Generating Station (a)	Coal	25.4	%		771		20		377
Dolet Hills Generating Station (Unit No. 1) (f)	Lignite	40.2	%		264		-		193
Flint Creek Generating Station (Unit No. 1) (g)	Coal	50.0	%		118		6		63
Pirkey Generating Station (Unit No. 1) (g)	Lignite	85.9	%		513		1		362
Oklaunion Generating Station (Unit No. 1) (e)	Coal	70.3	%		401		2		208
Turk Generating Plant (h)	Coal	73.33	%		-		1,326		-
Transmission	NA	(d)			63		6		50

				Company’s Share at December 31, 2010
						Construction
	Fuel	Percent of		Utility Plant		Work in		Accumulated
	Type	Ownership		in Service		Progress		Depreciation
				(in millions)
W.C. Beckjord Generating Station (Unit No. 6) (a)	Coal	12.5	%	$	19	$	-	$	8
Conesville Generating Station (Unit No. 4) (b)	Coal	43.5	%		301		8		49
J.M. Stuart Generating Station (c)	Coal	26.0	%		507		23		163
Wm. H. Zimmer Generating Station (a)	Coal	25.4	%		771		10		366
Dolet Hills Generating Station (Unit No. 1) (f)	Lignite	40.2	%		258		5		192
Flint Creek Generating Station (Unit No. 1) (g)	Coal	50.0	%		116		7		62
Pirkey Generating Station (Unit No. 1) (g)	Lignite	85.9	%		503		10		358
Oklaunion Generating Station (Unit No. 1) (e)	Coal	70.3	%		395		4		201
Turk Generating Plant (h)	Coal	73.33	%		-		971		-
Transmission	NA	(d)			63		3		48

(a) Operated by Duke Energy Corporation, a nonaffiliated company.

(b) Operated by OPCo.

(d) Varying percentages of ownership.

(e) Operated by PSO and also jointly-owned (54.7%) by TNC.

(f) Operated by CLECO, a nonaffiliated company.

(g) Operated by SWEPCo.

(h) Turk Generating Plant is currently under construction with a projected commercial operation date in the fourth quarter of 2012. SWEPCo jointly owns the plant with Arkansas Electric Cooperative Corporation (11.67%), East Texas Electric Cooperative (8.33%) and Oklahoma Municipal Power Authority (6.67%). Through December 2011, construction costs totaling $374 million have been billed to the other owners.

NA Not Applicable

Appalachian Power Co [Member]

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

15. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

The Registrant Subsidiaries provide for depreciation of Property, Plant and Equipment, excluding coal-mining properties, on a straight-line basis over the estimated useful lives of property, generally using composite rates by functional class. The following table provides the annual composite depreciation rates by functional class generally used by the Registrant Subsidiaries:

APCo

2011	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	5,194,967	$	1,783,154	2.6%	40-121	$	-	$	-	-	-
Transmission		1,943,969		457,235	1.6%	25-87		-		-	-	-
Distribution		2,845,405		595,122	3.2%	11-52		-		-	-	-
CWIP		565,841		(9,918)	NM	NM		-		-	-	-
Other		323,630		155,688	6.6%	24-55		33,696		12,735	NM	NM
Total	$	10,873,812	$	2,981,281			$	33,696	$	12,735

2010	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	4,736,150	$	1,701,839	2.4%	40-121	$	-	$	-	-	-
Transmission		1,852,415		445,671	1.6%	25-87		-		-	-	-
Distribution		2,740,752		562,139	3.2%	11-52		-		-	-	-
CWIP		562,280		(18,470)	NM	NM		-		-	-	-
Other		314,301		139,167	7.8%	24-55		33,712		12,741	NM	NM
Total	$	10,205,898	$	2,830,346			$	33,712	$	12,741

2009	Regulated		Nonregulated
	Annual Composite		Annual Composite
	Depreciation	Depreciable	Depreciation	Depreciable
Functional Class of Property	Rate	Life Ranges	Rate	Life Ranges
		(in years)		(in years)
Generation	2.3%	40-121	-	-
Transmission	1.6%	25-87	-	-
Distribution	3.2%	11-52	-	-
CWIP	NM	NM	-	-
Other	8.9%	24-55	NM	NM

NM Not Meaningful

For cost-based rate-regulated operations, the composite depreciation rate generally includes a component for nonasset retirement obligation (non-ARO) removal costs, which is credited to Accumulated Depreciation and Amortization. Actual removal costs incurred are charged to Accumulated Depreciation and Amortization. Any excess of accrued non-ARO removal costs over actual removal costs incurred is reclassified from Accumulated Depreciation and Amortization and reflected as a regulatory liability.

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

The following is a reconciliation of the 2011 and 2010 aggregate carrying amounts of ARO by Registrant Subsidiary:

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2010			Expense		Incurred		Settled		Estimates		2011

		(in thousands)
APCo (a)(d)		$	141,924		$	9,534	$	3	$	(3,600)	$	(35,094)	$	112,767
I&M (a)(b)(d)			963,029			51,308		-		(1,370)		155		1,013,122
OPCo (a)(d)			189,271			13,499		165		(4,872)		43,765		241,828
PSO (a)(d)			21,557			1,708		-		(414)		(3,228)		19,623
SWEPCo (a)(c)(d)(e)			59,382			4,114		7,063		(14,947)		11,571		67,183

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2009			Expense		Incurred		Settled		Estimates		2010

		(in thousands)
APCo (a)(d)		$	125,289		$	8,541	$	5,341	$	(4,064)	$	6,817	$	141,924
I&M (a)(b)(d)			894,746			47,844		7,216		(1,694)		14,917		963,029
OPCo (a)(d)			134,743			11,434		5,031		(4,208)		42,271		189,271
PSO (a)(d)			15,652			1,332		4,746		(173)		-		21,557
SWEPCo (a)(c)(d)(e)			51,684	(f)		4,290		9,056		(7,709)		2,061		59,382

(a)	Includes ARO related to ash disposal facilities.
(b)	Includes ARO related to nuclear decommissioning costs for the Cook Plant ($979 million and $930 million at
	December 31, 2011 and 2010, respectively).
(c)	Includes ARO related to Sabine and DHLC.
(d)	Includes ARO related to asbestos removal.
(e)	The current portion of SWEPCo’s ARO, totaling $1.5 million and $2.6 million, at December 31, 2011 and
	2010 respectively, is included in Other Current Liabilities on SWEPCo’s balance sheets.
(f)	SWEPCo deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for
	"Consolidations." As a result, SWEPCo recorded only 50% ($12 million) of the final reclamation based on its
	share of the obligation instead of the previous 100%.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,212	$	2,967	$	7,000
I&M		15,395		15,678		12,013
OPCo		5,549		5,949		6,094
PSO		1,317		804		1,787
SWEPCo		48,731		45,646		46,737

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	6,257	$	2,251	$	6,014
I&M		7,838		8,500		8,348
OPCo		2,350		3,786		16,506
PSO		822		572		1,142
SWEPCo		40,904		33,668		29,546

Jointly-owned Electric Facilities

APCo, I&M, OPCo, PSO and SWEPCo have electric facilities that are jointly-owned with affiliated and nonaffiliated companies. Using its own financing, each participating company is obligated to pay its share of the costs of any such jointly-owned facilities in the same proportion as its ownership interest. Each Registrant Subsidiary's proportionate share of the operating costs associated with such facilities is included in its statements of income and the investments and accumulated depreciation are reflected in its balance sheets under Property, Plant and Equipment as follows:

					Company’s Share at December 31, 2011
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	554,555	$	16,987	$	93,404

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	759,033	$	19,357	$	443,857

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,510	$	15,344	$	188,820
W.C. Beckjord Generating Station		Coal	12.5	%		19,131		108		8,476
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		309,771		11,633		53,980
J.M. Stuart Generating Station (d)		Coal	26.0	%		528,271		13,292		171,830
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,158		19,949		376,585
Transmission		NA	(f)			63,115		5,805		49,487
Total					$	2,679,956	$	66,131	$	849,178

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	92,805	$	446	$	56,539

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	264,487	$	465	$	193,565
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		118,163		6,532		62,988
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		512,557		674		361,667
Turk Generating Plant (j)		Coal	73.33	%		-		1,326,013		-
Total					$	895,207	$	1,333,684	$	618,220

					Company’s Share at December 31, 2010
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	472,244	$	5,638	$	77,786

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	742,538	$	25,304	$	437,371

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,870	$	6,354	$	168,933
W.C. Beckjord Generating Station		Coal	12.5	%		19,079		248		8,003
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		300,618		8,259		49,121
J.M. Stuart Generating Station (d)		Coal	26.0	%		506,756		22,435		162,869
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,236		9,636		365,989
Transmission		NA	(f)			62,952		3,008		47,957
Total					$	2,649,511	$	49,940	$	802,872

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	91,275	$	1,124	$	56,160

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	258,261	$	4,648	$	191,486
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		115,742		6,725		61,750
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		502,520		10,317		358,241
Turk Generating Plant (j)		Coal	73.33	%		-		971,131		-
Total					$	876,523	$	992,821	$	611,477

(a) Operated by APCo.

(b) Operated by Duke Energy Corporation, a nonaffiliated company.

(d) Operated by The Dayton Power & Light Company, a nonaffiliated company.

(e) Operated by I&M.

(f) Varying percentages of ownership.

(g) Operated by PSO and also jointly-owned (54.7%) by TNC.

(h) Operated by CLECO Corporation, a nonaffiliated company.

(i) Operated by SWEPCo.

(j) Turk Generating Plant is currently under construction with a projected commercial operation date in the fourth quarter of 2012. SWEPCo jointly owns the plant with Arkansas Electric Cooperative Corporation (11.67%), East Texas Electric Cooperative (8.33%) and Oklahoma Municipal Power Authority (6.67%). Through December 2011, construction costs totaling $374 million have been billed to the other owners.

NA Not Applicable

Indiana Michigan Power Co [Member]

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

15. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

I&M

2011	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	3,932,472	$	2,078,651	1.6%	59-132	$	-	$	-	-	-
Transmission		1,224,786		414,941	1.4%	46-75		-		-	-	-
Distribution		1,481,608		374,137	2.4%	14-70		-		-	-	-
CWIP		236,096		60,665	NM	NM		-		-	-	-
Other		559,698		143,312	7.4%	NM		149,860		108,214	NM	NM
Total	$	7,434,660	$	3,071,706			$	149,860	$	108,214

2010	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	3,774,262	$	2,085,746	1.6%	59-132	$	-	$	-	-	-
Transmission		1,188,665		408,832	1.4%	46-75		-		-	-	-
Distribution		1,411,095		361,259	2.5%	14-70		-		-	-	-
CWIP		301,534		33,046	NM	NM		-		-	-	-
Other		572,328		129,703	11.7%	NM		147,380		106,412	NM	NM
Total	$	7,247,884	$	3,018,586			$	147,380	$	106,412

2009	Regulated		Nonregulated
	Annual Composite		Annual Composite
	Depreciation	Depreciable	Depreciation	Depreciable
Functional Class of Property	Rate	Life Ranges	Rate	Life Ranges
		(in years)		(in years)
Generation	1.6%	59-132	-	-
Transmission	1.4%	46-75	-	-
Distribution	2.4%	14-70	-	-
CWIP	NM	NM	-	-
Other	12.8%	NM	NM	NM

NM Not Meaningful

Asset Retirement Obligations (ARO)

The Registrant Subsidiaries record ARO in accordance with the accounting guidance for “Asset Retirement and Environmental Obligations” for the retirement of certain ash disposal facilities, closure and monitoring of underground carbon storage facilities at Mountaineer Plant and coal mining facilities as well as asbestos removal. I&M records ARO for the decommissioning of the Cook Plant. The Registrant Subsidiaries have identified, but not recognized, ARO liabilities related to electric transmission and distribution assets as a result of certain easements on property on which assets are owned. Generally, such easements are perpetual and require only the retirement and removal of assets upon the cessation of the property's use. The retirement obligation is not estimable for such easements since the Registrant Subsidiaries plan to use their facilities indefinitely. The retirement obligation would only be recognized if and when the Registrant Subsidiaries abandon or cease the use of specific easements, which is not expected.

As of December 31, 2011 and 2010, I&M's ARO liability for nuclear decommissioning of the Cook Plant was $979 million and $930 million, respectively. These liabilities are reflected in Asset Retirement Obligations on I&M's balance sheets. As of December 31, 2011 and 2010, the fair value of I&M's assets that are legally restricted for purposes of settling decommissioning liabilities totaled $1.3 billion and $1.2 billion, respectively. These assets are included in Spent Nuclear Fuel and Decommissioning Trusts on I&M's balance sheets.

The following is a reconciliation of the 2011 and 2010 aggregate carrying amounts of ARO by Registrant Subsidiary:

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2010			Expense		Incurred		Settled		Estimates		2011

		(in thousands)
APCo (a)(d)		$	141,924		$	9,534	$	3	$	(3,600)	$	(35,094)	$	112,767
I&M (a)(b)(d)			963,029			51,308		-		(1,370)		155		1,013,122
OPCo (a)(d)			189,271			13,499		165		(4,872)		43,765		241,828
PSO (a)(d)			21,557			1,708		-		(414)		(3,228)		19,623
SWEPCo (a)(c)(d)(e)			59,382			4,114		7,063		(14,947)		11,571		67,183

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2009			Expense		Incurred		Settled		Estimates		2010

		(in thousands)
APCo (a)(d)		$	125,289		$	8,541	$	5,341	$	(4,064)	$	6,817	$	141,924
I&M (a)(b)(d)			894,746			47,844		7,216		(1,694)		14,917		963,029
OPCo (a)(d)			134,743			11,434		5,031		(4,208)		42,271		189,271
PSO (a)(d)			15,652			1,332		4,746		(173)		-		21,557
SWEPCo (a)(c)(d)(e)			51,684	(f)		4,290		9,056		(7,709)		2,061		59,382

(a)	Includes ARO related to ash disposal facilities.
(b)	Includes ARO related to nuclear decommissioning costs for the Cook Plant ($979 million and $930 million at
	December 31, 2011 and 2010, respectively).
(c)	Includes ARO related to Sabine and DHLC.
(d)	Includes ARO related to asbestos removal.
(e)	The current portion of SWEPCo’s ARO, totaling $1.5 million and $2.6 million, at December 31, 2011 and
	2010 respectively, is included in Other Current Liabilities on SWEPCo’s balance sheets.
(f)	SWEPCo deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for
	"Consolidations." As a result, SWEPCo recorded only 50% ($12 million) of the final reclamation based on its
	share of the obligation instead of the previous 100%.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,212	$	2,967	$	7,000
I&M		15,395		15,678		12,013
OPCo		5,549		5,949		6,094
PSO		1,317		804		1,787
SWEPCo		48,731		45,646		46,737

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	6,257	$	2,251	$	6,014
I&M		7,838		8,500		8,348
OPCo		2,350		3,786		16,506
PSO		822		572		1,142
SWEPCo		40,904		33,668		29,546

Jointly-owned Electric Facilities

					Company’s Share at December 31, 2011
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	554,555	$	16,987	$	93,404

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	759,033	$	19,357	$	443,857

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,510	$	15,344	$	188,820
W.C. Beckjord Generating Station		Coal	12.5	%		19,131		108		8,476
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		309,771		11,633		53,980
J.M. Stuart Generating Station (d)		Coal	26.0	%		528,271		13,292		171,830
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,158		19,949		376,585
Transmission		NA	(f)			63,115		5,805		49,487
Total					$	2,679,956	$	66,131	$	849,178

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	92,805	$	446	$	56,539

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	264,487	$	465	$	193,565
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		118,163		6,532		62,988
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		512,557		674		361,667
Turk Generating Plant (j)		Coal	73.33	%		-		1,326,013		-
Total					$	895,207	$	1,333,684	$	618,220

					Company’s Share at December 31, 2010
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	472,244	$	5,638	$	77,786

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	742,538	$	25,304	$	437,371

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,870	$	6,354	$	168,933
W.C. Beckjord Generating Station		Coal	12.5	%		19,079		248		8,003
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		300,618		8,259		49,121
J.M. Stuart Generating Station (d)		Coal	26.0	%		506,756		22,435		162,869
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,236		9,636		365,989
Transmission		NA	(f)			62,952		3,008		47,957
Total					$	2,649,511	$	49,940	$	802,872

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	91,275	$	1,124	$	56,160

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	258,261	$	4,648	$	191,486
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		115,742		6,725		61,750
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		502,520		10,317		358,241
Turk Generating Plant (j)		Coal	73.33	%		-		971,131		-
Total					$	876,523	$	992,821	$	611,477

(a) Operated by APCo.

(b) Operated by Duke Energy Corporation, a nonaffiliated company.

(d) Operated by The Dayton Power & Light Company, a nonaffiliated company.

(e) Operated by I&M.

(f) Varying percentages of ownership.

(g) Operated by PSO and also jointly-owned (54.7%) by TNC.

(h) Operated by CLECO Corporation, a nonaffiliated company.

(i) Operated by SWEPCo.

NA Not Applicable

Ohio Power Co [Member]

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

15. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

OPCo

2011	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	-	$	-	-	-	$	9,502,614	$	3,596,589	3.2%	35-66
Transmission		1,948,329		763,664	2.3%	27-70		-		-	-	-
Distribution		3,545,574		1,146,202	3.7%	12-56		-		-	-	-
CWIP		183,096		(3,371)	NM	NM		171,369		1,152	NM	NM
Other		407,044		222,368	8.7%	NM		139,598		15,957	NM	NM
Total	$	6,084,043	$	2,128,863			$	9,813,581	$	3,613,698

2010	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	-	$	-	-	-	$	9,576,404	$	3,494,690	3.3%	35-70
Transmission		1,896,989		733,191	2.3%	27-70		-		-	-	-
Distribution		3,422,413		1,066,797	3.7%	12-56		-		-	-	-
CWIP		193,377		(1,540)	NM	NM		132,526		9,151	NM	NM
Other		420,514		217,286	9.2%	NM		142,333		14,314	NM	NM
Total	$	5,933,293	$	2,015,734			$	9,851,263	$	3,518,155

2009	Regulated		Nonregulated
	Annual Composite		Annual Composite
	Depreciation	Depreciable	Depreciation	Depreciable
Functional Class of Property	Rate	Life Ranges	Rate	Life Ranges
		(in years)		(in years)
Generation	-	-	3.0%	35-70
Transmission	2.3%	27-70	-	-
Distribution	3.6%	12-56	-	-
CWIP	NM	NM	NM	NM
Other	10.9%	NM	NM	NM

NM Not Meaningful

Asset Retirement Obligations (ARO)

The following is a reconciliation of the 2011 and 2010 aggregate carrying amounts of ARO by Registrant Subsidiary:

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2010			Expense		Incurred		Settled		Estimates		2011

		(in thousands)
APCo (a)(d)		$	141,924		$	9,534	$	3	$	(3,600)	$	(35,094)	$	112,767
I&M (a)(b)(d)			963,029			51,308		-		(1,370)		155		1,013,122
OPCo (a)(d)			189,271			13,499		165		(4,872)		43,765		241,828
PSO (a)(d)			21,557			1,708		-		(414)		(3,228)		19,623
SWEPCo (a)(c)(d)(e)			59,382			4,114		7,063		(14,947)		11,571		67,183

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2009			Expense		Incurred		Settled		Estimates		2010

		(in thousands)
APCo (a)(d)		$	125,289		$	8,541	$	5,341	$	(4,064)	$	6,817	$	141,924
I&M (a)(b)(d)			894,746			47,844		7,216		(1,694)		14,917		963,029
OPCo (a)(d)			134,743			11,434		5,031		(4,208)		42,271		189,271
PSO (a)(d)			15,652			1,332		4,746		(173)		-		21,557
SWEPCo (a)(c)(d)(e)			51,684	(f)		4,290		9,056		(7,709)		2,061		59,382

(a)	Includes ARO related to ash disposal facilities.
(b)	Includes ARO related to nuclear decommissioning costs for the Cook Plant ($979 million and $930 million at
	December 31, 2011 and 2010, respectively).
(c)	Includes ARO related to Sabine and DHLC.
(d)	Includes ARO related to asbestos removal.
(e)	The current portion of SWEPCo’s ARO, totaling $1.5 million and $2.6 million, at December 31, 2011 and
	2010 respectively, is included in Other Current Liabilities on SWEPCo’s balance sheets.
(f)	SWEPCo deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for
	"Consolidations." As a result, SWEPCo recorded only 50% ($12 million) of the final reclamation based on its
	share of the obligation instead of the previous 100%.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,212	$	2,967	$	7,000
I&M		15,395		15,678		12,013
OPCo		5,549		5,949		6,094
PSO		1,317		804		1,787
SWEPCo		48,731		45,646		46,737

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	6,257	$	2,251	$	6,014
I&M		7,838		8,500		8,348
OPCo		2,350		3,786		16,506
PSO		822		572		1,142
SWEPCo		40,904		33,668		29,546

Jointly-owned Electric Facilities

					Company’s Share at December 31, 2011
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	554,555	$	16,987	$	93,404

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	759,033	$	19,357	$	443,857

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,510	$	15,344	$	188,820
W.C. Beckjord Generating Station		Coal	12.5	%		19,131		108		8,476
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		309,771		11,633		53,980
J.M. Stuart Generating Station (d)		Coal	26.0	%		528,271		13,292		171,830
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,158		19,949		376,585
Transmission		NA	(f)			63,115		5,805		49,487
Total					$	2,679,956	$	66,131	$	849,178

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	92,805	$	446	$	56,539

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	264,487	$	465	$	193,565
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		118,163		6,532		62,988
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		512,557		674		361,667
Turk Generating Plant (j)		Coal	73.33	%		-		1,326,013		-
Total					$	895,207	$	1,333,684	$	618,220

					Company’s Share at December 31, 2010
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	472,244	$	5,638	$	77,786

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	742,538	$	25,304	$	437,371

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,870	$	6,354	$	168,933
W.C. Beckjord Generating Station		Coal	12.5	%		19,079		248		8,003
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		300,618		8,259		49,121
J.M. Stuart Generating Station (d)		Coal	26.0	%		506,756		22,435		162,869
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,236		9,636		365,989
Transmission		NA	(f)			62,952		3,008		47,957
Total					$	2,649,511	$	49,940	$	802,872

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	91,275	$	1,124	$	56,160

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	258,261	$	4,648	$	191,486
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		115,742		6,725		61,750
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		502,520		10,317		358,241
Turk Generating Plant (j)		Coal	73.33	%		-		971,131		-
Total					$	876,523	$	992,821	$	611,477

(a) Operated by APCo.

(b) Operated by Duke Energy Corporation, a nonaffiliated company.

(d) Operated by The Dayton Power & Light Company, a nonaffiliated company.

(e) Operated by I&M.

(f) Varying percentages of ownership.

(g) Operated by PSO and also jointly-owned (54.7%) by TNC.

(h) Operated by CLECO Corporation, a nonaffiliated company.

(i) Operated by SWEPCo.

NA Not Applicable

Public Service Co Of Oklahoma [Member]

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

15. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

PSO

2011	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	1,317,948	$	652,526	1.8%	9-70	$	-	$	-	-	-
Transmission		692,644		167,827	1.9%	40-75		-		-	-	-
Distribution		1,762,110		329,041	2.4%	30-65		-		-	-	-
CWIP		70,371		(5,413)	NM	NM		-		-	-	-
Other		209,467		122,838	8.3%	5-35		5,159		(3)	NM	NM
Total	$	4,052,540	$	1,266,819			$	5,159	$	(3)

2010	Regulated						Nonregulated
					Annual						Annual
Functional	Property,				Composite		Property,				Composite
Class of	Plant and		Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment		Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)					(in years)	(in thousands)					(in years)
Generation	$	1,330,368	$	648,205	1.8%	9-70	$	-	$	-	-	-
Transmission		663,994		161,835	1.9%	40-75		-		-	-	-
Distribution		1,686,470		311,005	2.4%	27-65		-		-	-	-
CWIP		59,091		(1,958)	NM	NM		-		-	-	-
Other		230,286		135,977	8.3%	5-35		5,120		-	NM	NM
Total	$	3,970,209	$	1,255,064			$	5,120	$	-

2009	Regulated		Nonregulated
	Annual Composite		Annual Composite
	Depreciation	Depreciable	Depreciation	Depreciable
Functional Class of Property	Rate	Life Ranges	Rate	Life Ranges
		(in years)		(in years)
Generation	1.8%	9-70	-	-
Transmission	2.0%	40-75	-	-
Distribution	2.4%	27-65	-	-
CWIP	NM	NM	-	-
Other	8.3%	5-35	NM	NM

NM Not Meaningful

Asset Retirement Obligations (ARO)

The following is a reconciliation of the 2011 and 2010 aggregate carrying amounts of ARO by Registrant Subsidiary:

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2010			Expense		Incurred		Settled		Estimates		2011

		(in thousands)
APCo (a)(d)		$	141,924		$	9,534	$	3	$	(3,600)	$	(35,094)	$	112,767
I&M (a)(b)(d)			963,029			51,308		-		(1,370)		155		1,013,122
OPCo (a)(d)			189,271			13,499		165		(4,872)		43,765		241,828
PSO (a)(d)			21,557			1,708		-		(414)		(3,228)		19,623
SWEPCo (a)(c)(d)(e)			59,382			4,114		7,063		(14,947)		11,571		67,183

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2009			Expense		Incurred		Settled		Estimates		2010

		(in thousands)
APCo (a)(d)		$	125,289		$	8,541	$	5,341	$	(4,064)	$	6,817	$	141,924
I&M (a)(b)(d)			894,746			47,844		7,216		(1,694)		14,917		963,029
OPCo (a)(d)			134,743			11,434		5,031		(4,208)		42,271		189,271
PSO (a)(d)			15,652			1,332		4,746		(173)		-		21,557
SWEPCo (a)(c)(d)(e)			51,684	(f)		4,290		9,056		(7,709)		2,061		59,382

(a)	Includes ARO related to ash disposal facilities.
(b)	Includes ARO related to nuclear decommissioning costs for the Cook Plant ($979 million and $930 million at
	December 31, 2011 and 2010, respectively).
(c)	Includes ARO related to Sabine and DHLC.
(d)	Includes ARO related to asbestos removal.
(e)	The current portion of SWEPCo’s ARO, totaling $1.5 million and $2.6 million, at December 31, 2011 and
	2010 respectively, is included in Other Current Liabilities on SWEPCo’s balance sheets.
(f)	SWEPCo deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for
	"Consolidations." As a result, SWEPCo recorded only 50% ($12 million) of the final reclamation based on its
	share of the obligation instead of the previous 100%.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,212	$	2,967	$	7,000
I&M		15,395		15,678		12,013
OPCo		5,549		5,949		6,094
PSO		1,317		804		1,787
SWEPCo		48,731		45,646		46,737

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	6,257	$	2,251	$	6,014
I&M		7,838		8,500		8,348
OPCo		2,350		3,786		16,506
PSO		822		572		1,142
SWEPCo		40,904		33,668		29,546

Jointly-owned Electric Facilities

					Company’s Share at December 31, 2011
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	554,555	$	16,987	$	93,404

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	759,033	$	19,357	$	443,857

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,510	$	15,344	$	188,820
W.C. Beckjord Generating Station		Coal	12.5	%		19,131		108		8,476
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		309,771		11,633		53,980
J.M. Stuart Generating Station (d)		Coal	26.0	%		528,271		13,292		171,830
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,158		19,949		376,585
Transmission		NA	(f)			63,115		5,805		49,487
Total					$	2,679,956	$	66,131	$	849,178

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	92,805	$	446	$	56,539

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	264,487	$	465	$	193,565
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		118,163		6,532		62,988
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		512,557		674		361,667
Turk Generating Plant (j)		Coal	73.33	%		-		1,326,013		-
Total					$	895,207	$	1,333,684	$	618,220

					Company’s Share at December 31, 2010
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	472,244	$	5,638	$	77,786

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	742,538	$	25,304	$	437,371

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,870	$	6,354	$	168,933
W.C. Beckjord Generating Station		Coal	12.5	%		19,079		248		8,003
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		300,618		8,259		49,121
J.M. Stuart Generating Station (d)		Coal	26.0	%		506,756		22,435		162,869
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,236		9,636		365,989
Transmission		NA	(f)			62,952		3,008		47,957
Total					$	2,649,511	$	49,940	$	802,872

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	91,275	$	1,124	$	56,160

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	258,261	$	4,648	$	191,486
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		115,742		6,725		61,750
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		502,520		10,317		358,241
Turk Generating Plant (j)		Coal	73.33	%		-		971,131		-
Total					$	876,523	$	992,821	$	611,477

(a) Operated by APCo.

(b) Operated by Duke Energy Corporation, a nonaffiliated company.

(d) Operated by The Dayton Power & Light Company, a nonaffiliated company.

(e) Operated by I&M.

(f) Varying percentages of ownership.

(g) Operated by PSO and also jointly-owned (54.7%) by TNC.

(h) Operated by CLECO Corporation, a nonaffiliated company.

(i) Operated by SWEPCo.

NA Not Applicable

Southwestern Electric Power Co [Member]

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

15. PROPERTY, PLANT AND EQUIPMENT

Depreciation, Depletion and Amortization

SWEPCo

2011	Regulated							Nonregulated
						Annual						Annual
Functional	Property,					Composite		Property,				Composite
Class of	Plant and			Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment			Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)	(in thousands)					(in years)
Generation	$	2,326,102		$	1,060,825	2.1%	35-68	$	-	$	-	-	-
Transmission		988,534			285,785	2.3%	50-70		-		-	-	-
Distribution		1,675,764			535,565	2.6%	25-65		-		-	-	-
CWIP		1,419,216	(a)		(3,527)	NM	NM		24,353		-	NM	NM
Other		400,492			229,695	6.9%	7-47		236,527		103,569	NM	NM
Total	$	6,810,108		$	2,108,343			$	260,880	$	103,569

2010	Regulated							Nonregulated
						Annual						Annual
Functional	Property,					Composite		Property,				Composite
Class of	Plant and			Accumulated		Depreciation	Depreciable	Plant and		Accumulated		Depreciation	Depreciable
Property	Equipment			Depreciation		Rate	Life Ranges	Equipment		Depreciation		Rate	Life Ranges
	(in thousands)						(in years)	(in thousands)					(in years)
Generation	$	2,297,463		$	1,026,467	1.9%	35-68	$	-	$	-	-	-
Transmission		943,724			272,619	2.4%	50-70		-		-	-	-
Distribution		1,611,129			513,472	2.7%	25-65		-		-	-	-
CWIP		1,065,949	(a)		700	NM	NM		5,654		-	NM	NM
Other		403,881			248,544	7.7%	7-47		228,277		68,549	NM	NM
Total	$	6,322,146		$	2,061,802			$	233,931	$	68,549

2009	Regulated		Nonregulated
	Annual Composite		Annual Composite
	Depreciation	Depreciable	Depreciation	Depreciable
Functional Class of Property	Rate	Life Ranges	Rate	Life Ranges
		(in years)		(in years)
Generation	2.7%	22-68	-	-
Transmission	2.6%	40-72	-	-
Distribution	3.6%	18-67	-	-
CWIP	NM	NM	NM	NM
Other	7.6%	7-48	NM	NM

(a) Includes CWIP related to SWEPCo's Arkansas jurisdictional share of the Turk Plant.
NM Not Meaningful

SWEPCo provides for depreciation, depletion and amortization of coal-mining assets over each asset's estimated useful life or the estimated life of each mine, whichever is shorter, using the straight-line method for mining structures and equipment. SWEPCo uses either the straight-line method or the units-of-production method to amortize mine development costs and deplete coal rights based on estimated recoverable tonnages. SWEPCo includes these costs in fuel expense.

Asset Retirement Obligations (ARO)

The following is a reconciliation of the 2011 and 2010 aggregate carrying amounts of ARO by Registrant Subsidiary:

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2010			Expense		Incurred		Settled		Estimates		2011

		(in thousands)
APCo (a)(d)		$	141,924		$	9,534	$	3	$	(3,600)	$	(35,094)	$	112,767
I&M (a)(b)(d)			963,029			51,308		-		(1,370)		155		1,013,122
OPCo (a)(d)			189,271			13,499		165		(4,872)		43,765		241,828
PSO (a)(d)			21,557			1,708		-		(414)		(3,228)		19,623
SWEPCo (a)(c)(d)(e)			59,382			4,114		7,063		(14,947)		11,571		67,183

		ARO at									Revisions in		ARO at
		December 31,			Accretion		Liabilities		Liabilities		Cash Flow		December 31,
Company		2009			Expense		Incurred		Settled		Estimates		2010

		(in thousands)
APCo (a)(d)		$	125,289		$	8,541	$	5,341	$	(4,064)	$	6,817	$	141,924
I&M (a)(b)(d)			894,746			47,844		7,216		(1,694)		14,917		963,029
OPCo (a)(d)			134,743			11,434		5,031		(4,208)		42,271		189,271
PSO (a)(d)			15,652			1,332		4,746		(173)		-		21,557
SWEPCo (a)(c)(d)(e)			51,684	(f)		4,290		9,056		(7,709)		2,061		59,382

(a)	Includes ARO related to ash disposal facilities.
(b)	Includes ARO related to nuclear decommissioning costs for the Cook Plant ($979 million and $930 million at
	December 31, 2011 and 2010, respectively).
(c)	Includes ARO related to Sabine and DHLC.
(d)	Includes ARO related to asbestos removal.
(e)	The current portion of SWEPCo’s ARO, totaling $1.5 million and $2.6 million, at December 31, 2011 and
	2010 respectively, is included in Other Current Liabilities on SWEPCo’s balance sheets.
(f)	SWEPCo deconsolidated DHLC effective January 1, 2010 in accordance with the accounting guidance for
	"Consolidations." As a result, SWEPCo recorded only 50% ($12 million) of the final reclamation based on its
	share of the obligation instead of the previous 100%.

Allowance for Funds Used During Construction (AFUDC) and Interest Capitalization

The Registrant Subsidiaries' amounts of allowance for equity funds used during construction are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	9,212	$	2,967	$	7,000
I&M		15,395		15,678		12,013
OPCo		5,549		5,949		6,094
PSO		1,317		804		1,787
SWEPCo		48,731		45,646		46,737

The Registrant Subsidiaries' amounts of allowance for borrowed funds used during construction, including capitalized interest, are summarized in the following table:

	Years Ended December 31,
Company	2011		2010		2009
	(in thousands)
APCo	$	6,257	$	2,251	$	6,014
I&M		7,838		8,500		8,348
OPCo		2,350		3,786		16,506
PSO		822		572		1,142
SWEPCo		40,904		33,668		29,546

Jointly-owned Electric Facilities

					Company’s Share at December 31, 2011
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	554,555	$	16,987	$	93,404

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	759,033	$	19,357	$	443,857

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,510	$	15,344	$	188,820
W.C. Beckjord Generating Station		Coal	12.5	%		19,131		108		8,476
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		309,771		11,633		53,980
J.M. Stuart Generating Station (d)		Coal	26.0	%		528,271		13,292		171,830
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,158		19,949		376,585
Transmission		NA	(f)			63,115		5,805		49,487
Total					$	2,679,956	$	66,131	$	849,178

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	92,805	$	446	$	56,539

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	264,487	$	465	$	193,565
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		118,163		6,532		62,988
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		512,557		674		361,667
Turk Generating Plant (j)		Coal	73.33	%		-		1,326,013		-
Total					$	895,207	$	1,333,684	$	618,220

					Company’s Share at December 31, 2010
							Construction
		Fuel	Percent of		Utility Plant		Work in		Accumulated
Company		Type	Ownership		in Service		Progress		Depreciation
					(in thousands)
APCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	33.33	%	$	472,244	$	5,638	$	77,786

I&M
Rockport Generating Plant (Unit No. 1) (e)		Coal	50.0	%	$	742,538	$	25,304	$	437,371

OPCo
John E. Amos Generating Station (Unit No. 3) (a)		Coal	66.67	%	$	988,870	$	6,354	$	168,933
W.C. Beckjord Generating Station		Coal	12.5	%		19,079		248		8,003
	(Unit No. 6) (b)
Conesville Generating Station (Unit No. 4) (c)		Coal	43.5	%		300,618		8,259		49,121
J.M. Stuart Generating Station (d)		Coal	26.0	%		506,756		22,435		162,869
Wm. H. Zimmer Generating Station (b)		Coal	25.4	%		771,236		9,636		365,989
Transmission		NA	(f)			62,952		3,008		47,957
Total					$	2,649,511	$	49,940	$	802,872

PSO
Oklaunion Generating Station (Unit No. 1) (g)		Coal	15.6	%	$	91,275	$	1,124	$	56,160

SWEPCo
Dolet Hills Generating Station (Unit No. 1) (h)		Lignite	40.2	%	$	258,261	$	4,648	$	191,486
Flint Creek Generating Station (Unit No. 1) (i)		Coal	50.0	%		115,742		6,725		61,750
Pirkey Generating Station (Unit No. 1) (i)		Lignite	85.9	%		502,520		10,317		358,241
Turk Generating Plant (j)		Coal	73.33	%		-		971,131		-
Total					$	876,523	$	992,821	$	611,477

(a) Operated by APCo.

(b) Operated by Duke Energy Corporation, a nonaffiliated company.

(d) Operated by The Dayton Power & Light Company, a nonaffiliated company.

(e) Operated by I&M.

(f) Varying percentages of ownership.

(g) Operated by PSO and also jointly-owned (54.7%) by TNC.

(h) Operated by CLECO Corporation, a nonaffiliated company.

(i) Operated by SWEPCo.

NA Not Applicable

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details