AEP Expects Fourth-Quarter Earnings To Be Below Analysts' Estimates

Dec. 10, 1998•News Release

COLUMBUS, Ohio, Dec. 10, 1998 -- American Electric Power (NYSE: AEP) expects fourth-quarter earnings to come in below analysts' estimates, the company said. "We expect to miss by more than a couple of pennies," said E. Linn Draper Jr., AEP chairman, president and chief executive officer. The average of analysts' estimates for the fourth quarter, compiled by First Call, is 73 cents a share. AEP earned $126.1 million, or 66 cents a share, in fourth quarter 1997. Draper blamed unseasonably warm weather for lowered earnings expectations. The number of heating degree-days accumulated during October and November was approximately 11 percent below normal. A heating degree-day is a computation that gauges the amount of heating needed to keep a building at 70 degrees. 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.

For More Information, Contact: Pat Hemlepp Manager, Media Relations 614/223-1620

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