AEP´s Ohio operating unit issues RFP for renewable energy resources

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COLUMBUS, Ohio, May 28, 2008 – American Electric Power (NYSE: AEP) operating unit AEP Ohio today issued a request for proposals (RFP) seeking long-term purchases of up to 300 megawatts (MW) of renewable energy resources.

According to the RFP, proposals must rely on commercially proven technologies for renewable energy, including wind, hydro, solar photovoltaic or solar thermal, geothermal, biologically derived methane gas and certain biomass energy projects. The generation must be interconnected to the PJM Interconnection and operational no later than Dec. 31, 2010.

A pre-bid conference call for potential bidders will be conducted June 12 with proposals to be submitted by July 15. RFP information can be found at

The renewable RFP is part of AEP’s goal – announced in 2007 – to add 1,000 MW 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 incremental increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.

“This RFP continues our commitment to adding renewables to our generation portfolio and will help ensure that we have renewable energy resources in place consistent with Ohio’s new advanced energy policies,” said Michael G. Morris, AEP chairman, president and chief executive officer. “One of the issues we will continue to grapple with as a nation is the desire to develop renewable energy resources and the realization that it will be more costly than traditional electricity generation methods. The new Ohio bill recognizes this with mechanisms to address the impact on the Ohio economy if cost-effective renewable generation does not develop to serve Ohio customers.

“Expansion of renewable power also will require significant transmission infrastructure investment to move it from where it can be produced to population centers. On a national level, we need policies that encourage development of extra-high voltage transmission to transport renewable energy and a long-term commitment to production tax credits to make renewable energy less costly,” Morris said.

AEP has issued RFPs in the last two months seeking 665 MW of renewable energy. In addition to the AEP Ohio RFP, AEP is seeking 200 MW of renewable energy to serve its Public Service Company of Oklahoma customers, 65 MW of renewable energy to serve its Southwestern Electric Power Company customers and 100 MW of renewable energy to serve its Appalachian Power customers. The company has completed three purchases of long-term renewable energy capacity since making its 1,000-MW commitment in 2007. The three purchases, all of wind energy, added 275 MW of renewable capacity to serve AEP’s customers in Indiana, Michigan, West Virginia, Virginia and Tennessee.

AEP’s wind portfolio – prior to the recent RFPs – is 1,052 MW, which includes 310 MW of wind generation owned by AEP in Texas, 476.5 MW of long-term wind purchase agreements reached before the company’s 2007 commitment and 275 MW of wind purchase agreements made last year.

AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia.

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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Melissa McHenry
Manager, Corporate Media Relations