AEP ANNOUNCES PLANS TO CONSTRUCT EMISSION CONTROL SYSTEM AT MUSKINGUM RIVER PLANT

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COLUMBUS, Ohio, August 22, 2001 - American Electric Power (NYSE: AEP) today announced plans to construct a new emission control system on one unit of its Muskingum River generating station near the communities of Waterford and Beverly, Ohio.

When in operation, the selective catalytic reduction, or SCR, system will reduce nitrogen oxide, or NOx, emissions from the 585-megawatt unit by approximately 85 percent. AEP is reducing NOx emissions as part of its efforts to comply with new U.S. Environmental Protection Agency regulations.
Construction is slated to begin within the month, and the installation is targeted for completion by May 2003.

The Muskingum River Plant SCR unit represents an additional investment of $71.4 million by AEP in NOx reduction technology. Muskingum River Plant’s Unit 5 also is equipped with low-NOx burners. Since 1993, AEP has invested more than $160 million to install low-NOx burners on its Midwestern power plants and has reduced NOx emission rates by approximately 30 percent through that effort.

“This not only represents a strong investment in our plant’s future, it also represents an important contribution to the health and diversity of the local area economy," Muskingum River Plant General Manager Dan Kohler said. "It will also provide temporary employment opportunities for area residents.”

Kohler estimates the Muskingum River installation will result in between 200 and 250 temporary construction jobs, on average, during the life of the project.

AEP ProServ, Inc., an AEP subsidiary that provides a full array of project management, engineering, construction, operations, technical services and maintenance expertise, will manage the SCR construction project at Muskingum River.

AEP will use a urea-to-ammonia system known as Ammonia on Demand (AOD) for the SCR’s ammonia supply. SCR uses a chemical reaction to break down the NOx present in the exhaust gases that are released during the coal combustion process. NOx is broken into elemental nitrogen and water.

To date, AEP has added SCR equipment to its Gen. James M. Gavin Plant in Cheshire, Ohio; is constructing systems at its Mountaineer Plant in New Haven, W.Va., and John E. Amos’ Unit 3 at St. Albans, W.Va.; and has announced plans to install SCR at Big Sandy Plant’s Unit 2 near Louisa, Ky., and Cardinal Plant Unit 1 in Brilliant, Ohio, as well as Muskingum River Unit 5. Total investment in these projects is estimated at more than $670 million.

The SCR projects are the latest elements of the company’s program to comply with federal requirements to reduce NOx emissions. The new U.S. Environmental Protection Agency requirements cap NOx emissions at affected units during the May through September ozone season.

While AEP is moving forward with SCR installations, the company also continues to explore new technologies that ultimately may prove to be more efficient and cost-effective.

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it America’s largest generator of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume with a growing presence in natural gas. AEP provides retail electricity to more than 7 million customers worldwide and has holdings in the U.S. and select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.

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Vikki Michalski
Corporate Communications
(614) 416-3926