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COLUMBUS, Ohio, Aug. 8, 2007 – Two American Electric Power (NYSE: AEP) subsidiaries have signed long-term power purchase agreements with Fowler Ridge Wind Farm LLC, an indirect subsidiary of BP Alternative Energy North America Inc., for a total of 200 megawatts (MW) of renewable wind energy.

AEP’s Appalachian Power and Indiana Michigan Power utility units each signed a 20-year agreement to purchase 100 MW (nameplate capacity) of wind energy from the Fowler Ridge Wind Farm that is being developed in Benton County (and part of Tippecanoe County), Ind. The Fowler Ridge Wind Farm is expected to be online by the end of 2008. Pricing terms of both agreements are confidential. The agreements are subject to approvals from the Indiana Utility Regulatory Commission, the Michigan Public Service Commission and the Public Service Commission of West Virginia.

“Although we’ve long had significant wind resources in our western generation portfolio, these two contracts represent the first commercial use of wind energy to serve the electricity demands of customers in our eastern seven-state footprint. Using wind energy to help satisfy our need for additional generation improves the fuel diversity of our eastern fleet and supports progressive state initiatives to expand renewable energy resources,” said Michael G. Morris, chairman, president and chief executive officer of American Electric Power.

AEP currently owns two wind farms in Texas with a total capacity of 310 MW and has long-term contracts to purchase 467 MW of output from wind farms in Oklahoma and Texas owned by third parties.

AEP issued requests for proposals April 2 for up to 260 MW of wind energy for Appalachian Power and up to 100 MW of wind energy for Indiana Michigan Power. AEP anticipates entering into additional power purchase agreements for wind energy for Appalachian Power.

The power purchase agreements with Fowler Ridge Wind Farm are part of AEP’s voluntary plans to add 1,000 MW of new wind energy by 2011 as part of the company’s comprehensive strategy to address greenhouse gas emissions. The addition of wind capacity to AEP’s energy portfolio avoids an increase in greenhouse gas emissions that would occur if AEP used traditional fossil generation to meet growing customer demand.

“We strongly support development of renewable energy resources where they are viable and economically feasible. These two contracts clearly demonstrate that a one-size-fits-all government mandate is not necessary to encourage the development of renewable energy where it makes sense,” Morris said. “The Fowler Ridge Wind Farm represents the right approach to renewable energy development. The Benton County area is considered the windiest documented area in Indiana, and therefore, is one of the most viable locations in the state for wind development. Additionally, robust, high-voltage transmission already exists near the project to transport energy generated by the project to customers.”

The Fowler Ridge Wind Farm will be electrically interconnected to AEP’s transmission system, and the PJM Interconnection, at AEP’s 345-kilovolt Dequine Station near West Layfayette, Ind.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.




This report made by AEP and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity when needed at acceptable prices and terms and to recover those costs through applicable rate cases or competitive rates; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for new investments, transmission service and environmental compliance); resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; AEP’s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas and other energy-related commodities; changes in utility regulation, including the potential for new legislation in Ohio and membership in and integration into regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP’s pension and other postretirement benefit plans; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; other risks and unforeseen events, including wars, the effects of terrorism (including increased security cost), embargoes and other catastrophic events.

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