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Significant Accounting Matters (Tables)

9 Months Ended

Sep. 30, 2012

Consolidated Assets and Liabilities of Variable Interest Entities

AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
VARIABLE INTEREST ENTITIES
September 30, 2012
(in millions)

										TCC
		SWEPCo		I&M		Protected Cell				Transition
		Sabine		DCC Fuel		of EIS		AEP Credit		Funding
	ASSETS
	Current Assets	$	71	$	155	$	137	$	895	$	222
	Net Property, Plant and Equipment		175		208		-		-		-
	Other Noncurrent Assets		56		113		5		1		2,231	(a)
	Total Assets	$	302	$	476	$	142	$	896	$	2,453

	LIABILITIES AND EQUITY
	Current Liabilities	$	45	$	128	$	50	$	850	$	293
	Noncurrent Liabilities		257		348		71		1		2,142
	Equity		-		-		21		45		18
	Total Liabilities and Equity	$	302	$	476	$	142	$	896	$	2,453

(a) Includes an intercompany item eliminated in consolidation of $90 million.

AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
VARIABLE INTEREST ENTITIES
December 31, 2011
(in millions)

										TCC
		SWEPCo		I&M		Protected Cell				Transition
		Sabine		DCC Fuel		of EIS		AEP Credit		Funding
	ASSETS
	Current Assets	$	48	$	118	$	121	$	910	$	220
	Net Property, Plant and Equipment		154		188		-		-		-
	Other Noncurrent Assets		42		118		6		1		1,580
	Total Assets	$	244	$	424	$	127	$	911	$	1,800

	LIABILITIES AND EQUITY
	Current Liabilities	$	68	$	103	$	40	$	864	$	229
	Noncurrent Liabilities		176		321		71		1		1,557
	Equity		-		-		16		46		14
	Total Liabilities and Equity	$	244	$	424	$	127	$	911	$	1,800

Basic and Diluted EPS Calculations

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Amounts Attributable to AEP Common Shareholders	2012		2011		2012		2011
	(in millions)
Income Before Extraordinary Item	$	487	$	655	$	1,238	$	1,360
Extraordinary Item, Net of Tax		-		273		-		273
Net Income	$	487	$	928	$	1,238	$	1,633

		Three Months Ended September 30,
		2012				2011
		(in millions, except per share data)
				$/share				$/share
Earnings Attributable to AEP Common Shareholders		$	487			$	928

Weighted Average Number of Basic Shares Outstanding			485.0	$	1.00		482.5	$	1.92
Weighted Average Dilutive Effect of:
	Stock Options		0.1		-		0.1		-
	Restricted Stock Units		0.3		-		0.2		-
Weighted Average Number of Diluted Shares Outstanding			485.4	$	1.00		482.8	$	1.92

		Nine Months Ended September 30,
		2012				2011
		(in millions, except per share data)
				$/share				$/share
Earnings Attributable to AEP Common Shareholders		$	1,238			$	1,633

Weighted Average Number of Basic Shares Outstanding			484.4	$	2.55		481.9	$	3.39
Weighted Average Dilutive Effect of:
	Stock Options		0.1		-		-		-
	Restricted Stock Units		0.3		-		0.2		-
Weighted Average Number of Diluted Shares Outstanding			484.8	$	2.55		482.1	$	3.39

Appalachian Power Co [Member] | Billings from American Electric Power Service Corporation [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
APCo	$	47,820	$	52,105	$	130,260	$	144,398
I&M		31,134		32,127		88,618		94,961
OPCo		72,751		73,664		193,686		210,533
PSO		21,728		21,924		60,625		62,471
SWEPCo		33,154		35,101		93,120		96,494

Appalachian Power Co [Member] | Carrying Amount in AEPSC's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable


	September 30, 2012				December 31, 2011
	As Reported on the		Maximum		As Reported on the		Maximum
Company	Balance Sheet		Exposure		Balance Sheet		Exposure
	(in thousands)
APCo	$	18,989	$	18,989	$	20,812	$	20,812
I&M		12,654		12,654		13,741		13,741
OPCo		27,379		27,379		29,823		29,823
PSO		9,105		9,105		9,280		9,280
SWEPCo		14,054		14,054		14,699		14,699

Indiana Michigan Power Co [Member] | Billings from AEP Generating Co [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
I&M	$	65,051	$	64,948	$	177,790	$	167,620
OPCo		46,184		47,712		149,424		139,729

Indiana Michigan Power Co [Member] | Billings from American Electric Power Service Corporation [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
APCo	$	47,820	$	52,105	$	130,260	$	144,398
I&M		31,134		32,127		88,618		94,961
OPCo		72,751		73,664		193,686		210,533
PSO		21,728		21,924		60,625		62,471
SWEPCo		33,154		35,101		93,120		96,494

Indiana Michigan Power Co [Member] | Carrying Amount in AEGCo's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable



	September 30, 2012				December 31, 2011
	As Reported on		Maximum		As Reported on		Maximum
Company	the Balance Sheet		Exposure		the Balance Sheet		Exposure
	(in thousands)
I&M	$	22,450	$	22,450	$	25,731	$	25,731
OPCo		12,006		12,006		22,139		22,139

Indiana Michigan Power Co [Member] | Carrying Amount in AEPSC's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable


	September 30, 2012				December 31, 2011
	As Reported on the		Maximum		As Reported on the		Maximum
Company	Balance Sheet		Exposure		Balance Sheet		Exposure
	(in thousands)
APCo	$	18,989	$	18,989	$	20,812	$	20,812
I&M		12,654		12,654		13,741		13,741
OPCo		27,379		27,379		29,823		29,823
PSO		9,105		9,105		9,280		9,280
SWEPCo		14,054		14,054		14,699		14,699

Indiana Michigan Power Co [Member] | DCC Fuel [Member]

Consolidated Assets and Liabilities of Variable Interest Entities

INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIES
VARIABLE INTEREST ENTITIES
September 30, 2012 and December 31, 2011
(in thousands)
	DCC Fuel
ASSETS	2012		2011
Current Assets	$	154,774	$	118,144
Net Property, Plant and Equipment		208,185		188,375
Other Noncurrent Assets		113,519		117,772
Total Assets	$	476,478	$	424,291

LIABILITIES AND EQUITY
Current Liabilities	$	128,466	$	102,946
Noncurrent Liabilities		348,012		321,345
Equity		-		-
Total Liabilities and Equity	$	476,478	$	424,291

Ohio Power Co [Member] | Billings from AEP Generating Co [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
I&M	$	65,051	$	64,948	$	177,790	$	167,620
OPCo		46,184		47,712		149,424		139,729

Ohio Power Co [Member] | Billings from American Electric Power Service Corporation [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
APCo	$	47,820	$	52,105	$	130,260	$	144,398
I&M		31,134		32,127		88,618		94,961
OPCo		72,751		73,664		193,686		210,533
PSO		21,728		21,924		60,625		62,471
SWEPCo		33,154		35,101		93,120		96,494

Ohio Power Co [Member] | Carrying Amount in AEGCo's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable



	September 30, 2012				December 31, 2011
	As Reported on		Maximum		As Reported on		Maximum
Company	the Balance Sheet		Exposure		the Balance Sheet		Exposure
	(in thousands)
I&M	$	22,450	$	22,450	$	25,731	$	25,731
OPCo		12,006		12,006		22,139		22,139

Ohio Power Co [Member] | Carrying Amount in AEPSC's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable


	September 30, 2012				December 31, 2011
	As Reported on the		Maximum		As Reported on the		Maximum
Company	Balance Sheet		Exposure		Balance Sheet		Exposure
	(in thousands)
APCo	$	18,989	$	18,989	$	20,812	$	20,812
I&M		12,654		12,654		13,741		13,741
OPCo		27,379		27,379		29,823		29,823
PSO		9,105		9,105		9,280		9,280
SWEPCo		14,054		14,054		14,699		14,699

Public Service Co Of Oklahoma [Member] | Billings from American Electric Power Service Corporation [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
APCo	$	47,820	$	52,105	$	130,260	$	144,398
I&M		31,134		32,127		88,618		94,961
OPCo		72,751		73,664		193,686		210,533
PSO		21,728		21,924		60,625		62,471
SWEPCo		33,154		35,101		93,120		96,494

Public Service Co Of Oklahoma [Member] | Carrying Amount in AEPSC's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable


	September 30, 2012				December 31, 2011
	As Reported on the		Maximum		As Reported on the		Maximum
Company	Balance Sheet		Exposure		Balance Sheet		Exposure
	(in thousands)
APCo	$	18,989	$	18,989	$	20,812	$	20,812
I&M		12,654		12,654		13,741		13,741
OPCo		27,379		27,379		29,823		29,823
PSO		9,105		9,105		9,280		9,280
SWEPCo		14,054		14,054		14,699		14,699

Southwestern Electric Power Co [Member] | Billings from American Electric Power Service Corporation [Member]

Billings from Significant Variable Interest


	Three Months Ended September 30,				Nine Months Ended September 30,
Company	2012		2011		2012		2011
	(in thousands)
APCo	$	47,820	$	52,105	$	130,260	$	144,398
I&M		31,134		32,127		88,618		94,961
OPCo		72,751		73,664		193,686		210,533
PSO		21,728		21,924		60,625		62,471
SWEPCo		33,154		35,101		93,120		96,494

Southwestern Electric Power Co [Member] | Carrying Amount in AEPSC's Accounts Payable [Member]

Carrying Amount and Classification of Variable Interest in Accounts Payable


	September 30, 2012				December 31, 2011
	As Reported on the		Maximum		As Reported on the		Maximum
Company	Balance Sheet		Exposure		Balance Sheet		Exposure
	(in thousands)
APCo	$	18,989	$	18,989	$	20,812	$	20,812
I&M		12,654		12,654		13,741		13,741
OPCo		27,379		27,379		29,823		29,823
PSO		9,105		9,105		9,280		9,280
SWEPCo		14,054		14,054		14,699		14,699

Southwestern Electric Power Co [Member] | Sabine Mining Co [Member]

Consolidated Assets and Liabilities of Variable Interest Entities

SOUTHWESTERN ELECTRIC POWER COMPANY CONSOLIDATED
VARIABLE INTEREST ENTITIES
September 30, 2012 and December 31, 2011
(in thousands)
	Sabine
ASSETS	2012		2011
Current Assets	$	71,026	$	48,044
Net Property, Plant and Equipment		174,743		153,715
Other Noncurrent Assets		56,687		42,574
Total Assets	$	302,456	$	244,333

LIABILITIES AND EQUITY
Current Liabilities	$	45,033	$	67,779
Noncurrent Liabilities		257,109		176,163
Equity		314		391
Total Liabilities and Equity	$	302,456	$	244,333

Southwestern Electric Power Co [Member] | Dolet Hills Lignite Co, LLC [Member]

Companys Investment In Joint Venture

	September 30, 2012				December 31, 2011
	As Reported on		Maximum		As Reported on		Maximum
	the Balance Sheet		Exposure		the Balance Sheet		Exposure
	(in thousands)
Capital Contribution from SWEPCo	$	7,643	$	7,643	$	7,643	$	7,643
Retained Earnings		1,126		1,126		1,120		1,120
SWEPCo's Guarantee of Debt		-		53,278		-		52,310

Total Investment in DHLC	$	8,769	$	62,047	$	8,763	$	61,073

Dolet Hills Lignite Co, LLC [Member]

Companys Investment In Joint Venture

	September 30, 2012				December 31, 2011
	As Reported on		Maximum		As Reported on		Maximum
	the Balance Sheet		Exposure		the Balance Sheet		Exposure
	(in millions)
Capital Contribution from SWEPCo	$	8	$	8	$	8	$	8
Retained Earnings		1		1		1		1
SWEPCo's Guarantee of Debt		-		53		-		52

Total Investment in DHLC	$	9	$	62	$	9	$	61

PATH West Virginia Transmission Co, LLC [Member]

Companys Investment In Joint Venture

	September 30, 2012					December 31, 2011
	As Reported on			Maximum		As Reported on		Maximum
	the Balance Sheet			Exposure		the Balance Sheet		Exposure
			(in millions)
Capital Contribution from AEP	$	19		$	19	$	19	$	19
Retained Earnings		13			13		10		10

Total Investment in PATH-WV	$	32		$	32	$	29	$	29

- Definition

The entire disclosure for earnings per share.

+ References+ Details

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 46R

-Paragraph 4

-Subparagraph g

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 140

-Paragraph 35

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 22B

-Appendix D

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 5A

-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6759159-111685

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS140-4/FIN46(R)-8

-Paragraph C4

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 22E

-Appendix D

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5747-111685

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 24

-Appendix D

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5710-111685

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 46R

-Paragraph 2, 14, 15, 16, 23, 24, 25, 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 23A

-Appendix D

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228884-111685

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5728-111685

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Variable Interest Entity

-URI http://asc.fasb.org/extlink&oid=6528138

+ Details