AEP´s Cook Coal Terminal
Operates New Synthetic Fuel Plants

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METROPOLIS, Ill. August 17, 1998 -- American Electric Power´s (NYSE: AEP) Cook Coal Terminal today announced that it is supplying and operating two synthetic fuel plants at its Metropolis facility.

The synthetic fuel plants, owned by PC Illinois, take subbituminous coal from Wyoming´s Powder River Basin, add a carbon-based binder and run the mixture through a pelletizing machine. The end product is a coal pellet about two inches long and 3/8 inch in diameter. During the process, moisture is forced out of the coal, raising the coal pellet´s heat value from 8,800 Btu in the raw coal form to approximately 11,000 Btu per pound.

The two plants began operating in June and qualify for Section 29 federal tax credits. PC Illinois will market the product to electric utility generating plants.

AEP will supply up to 1.2 million tons of coal annually to the plants including the sale, transportation and handling of the coal. Sixteen new Cook Coal Terminal employees (two supervisors, and 14 hourly employees represented by the United Mine Workers of America Local # 2463) will operate the plants. In addition, Cook Coal Terminal will load the pellets onto barges for final delivery.

"We´re pleased to have these two plants at our terminal," says Tom Anderson, Cook Coal Terminal general manager. "Our terminal is a coal transportation center linking the Ohio and Mississippi River valleys with the low sulfur coal fields of the West and the Illinois Basin."

Cook Coal Terminal transloads more than 13 million tons of coal annually for AEP and external customers.

AEP, a global energy company, is one of the United States largest investor-owned utilities, providing energy to 3 million customers in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West Virginia. AEP has holdings in the United States, the United Kingdom, China and Australia. Wholly owned subsidiaries provide power engineering, energy consulting and energy management services around the world. The company is based in Columbus, Ohio. On Dec. 22, 1997, AEP announced a definitive merger agreement for a tax-free, stock-for-stock transaction with Central and South West Corp., a public utility holding company based in Dallas.
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For More Information, Contact:
Jeff Rennie
American Electric Power