AEP utility Appalachian Power issues RFP for renewable energy resources

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COLUMBUS, Ohio, April 1, 2008 – American Electric Power (NYSE: AEP) subsidiary Appalachian Power issued a request for proposals today seeking long-term purchases of up to approximately 100 megawatts of new renewable energy resources to be operational by the end of 2010.

According to the RFP, proposals must rely on commercially proven technologies for renewable energy, including wind; solar photovoltaic; biomass firing or co-firing of agricultural crops and all energy crops; hydro (as certified by the Low Impact Hydropower Institute); coal mine methane; landfill gas; biogas digesters; or biomass firing or co-firing of crop residues, animal waste and woody waste.

Expression of interest forms are due by April 30, with proposals to be submitted by May 30. The company expects the successful bidder to be selected and contracts in place by September. RFP information can be found at http://www.AppalachianPower.com/go/rfp .

The RFP is part of AEP’s voluntary plan – announced in 2007 – to add 1,000 megawatts of new wind or renewable energy by 2011 as a component of the company’s comprehensive strategy to address its greenhouse gas emissions. The addition of renewable energy to AEP’s energy portfolio avoids an increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.

“We are committed to increasing the wind and other renewable energy in our generation mix as part of our comprehensive climate strategy,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “Even with the growth, renewables - in the near term - will remain a small percentage of our total available capacity used to meet the day-to-day power needs of our customers, but they are of crucial importance to address the increasing concerns about the planet’s changing climate.”

AEP has made three purchases of long-term renewable energy – two by Appalachian Power – since the company made its 1,000-megawatt commitment in 2007. The previous two Appalachian Power purchases, both of wind energy, added 175 megawatts of renewable capacity for the utility that serves about 1 million customers in West Virginia, Virginia and Tennessee. Another AEP utility, Indiana Michigan Power, has added 100 megawatts of long-term wind energy, bringing AEP to within 725 megawatts of its commitment.

“Seeking additional renewable energy resources for Appalachian Power’s customers is part of a broader portfolio of energy solutions we are implementing as part of our climate efforts,” said Dana Waldo, president and chief operating officer of Appalachian Power. “Regulators in West Virginia recently approved our plans to build a fully commercial Integrated Gasification Combined Cycle (IGCC) clean-coal power plant, a project that will push that important technology into the commercial mainstream. We will begin construction once we get the necessary approval in Virginia.

“The first large-scale validation of carbon-capture and storage technology will take place on one of our plants in West Virginia,” Waldo said. “The nation’s first utility-scale energy storage system is on an Appalachian Power facility near Charleston. And, through AEP, we continue to push for improvements in energy efficiency, including the development of systems to enable customers to make wise energy decisions.”

AEP’s wind portfolio – prior to this most-recent RFP – is 1,050 megawatts, which includes 310-megawatts of wind generation owned by AEP in Texas, long-term wind purchase agreements reached before the company’s 2007 commitment and agreements reached after the 2007 commitment.

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 nearly 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 American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the registrants 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 and performance 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 (including the company’s ability to obtain any necessary regulatory approvals and permits) 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 of new investments in generation, distribution and transmission service and environmental compliance); resolution of litigation (including 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; volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impairing AEP’s ability to refinance existing debt at attractive rates; 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, coal, nuclear fuel and other energy-related commodities; changes in utility regulation, including the potential for new legislation in Ohio and the allocation of costs within regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the impact of volatility in the capital markets on the value of the investments held by AEP’s pension, other postretirement benefit plans and nuclear decommissioning trust; 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 costs), embargoes and other catastrophic events.

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