AEP RECEIVES APPROVAL FROM INDIANA COMMISSION TO CONTINUE, IMPROVE ECONOMIC DEVELOPMENT TOOL

Oct. 20, 1999•News Release

FORT WAYNE, Indiana, Oct. 19, 1999 – American Electric Power (NYSE: AEP) received approval from the Indiana Utility Regulatory Commission (IURC) to extend and improve the economic development rider (EDR), an energy discount program used to encourage companies to expand or locate new businesses to the Indiana communities served by AEP. The program targets specific types of commercial and industrial customers whose operations will promote sustained economic development based on plant and facilities investment, manufacturing growth, and job creation. The Michigan Public Service Commission previously approved the program for AEP's Michigan service territory. More than 4,500 new jobs have been created by 91 companies that have taken advantage of the program over the last 13 years, said Jim Elam, AEP economic development manager for Indiana and Michigan. And the newly approved provision will lower qualification thresholds — which means more companies will be eligible — and provide flexibility so companies can improve savings. In the past, to qualify for the EDR, companies had to increase their electrical demand by at least 500 kilovolt-amperes (kVA) if they were expanding their facility, and 1000 kVA if they were building a new site. The new threshold is 250 kVA in both cases. Demand is the peak amount of energy used at any one time during a month. In addition to lowering the demand threshold, qualifying companies now have three options for applying their energy discount. This will allow them to structure their discount in the more favorable way and increase their savings. “In today’s environment, high quality jobs are not created only by large-scale manufacturing facilities,” said Elam, “but also by medium-sized businesses that would qualify. The rider is now available to companies that are moderate energy users, but are the high-growth companies in today’s economy, such as high-tech firms in electronics, research-and-development and engineering. These are the companies providing high-paying jobs that are good for our communities. “This economic development tool is good for the Indiana communities we serve,” added Elam, “because it helps companies who are providing additional jobs and strengthening our economic base. It helps these companies when they’re either investing additional assets in the community, or when they’re in an expensive startup phase and it’s so difficult to turn a profit. “It’s to our benefit to help them succeed,” said Elam. “If these companies thrive, our communities thrive. And that’s good for everyone.” Companies that are interested in determining eligibility should contact Elam at 219.425.2153. 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: Mike Brian State Corporate Communications Manager 219/425-2137 (Office) 877/872-2796 (Pager)

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