AEP REVISES 2001, 2002 EARNINGS GUIDANCE

AEP currently expects ongoing 2001 earnings to be between $3.35 and $3.45 per share, compared with earlier expectations that earnings would be at the lower end of a $3.50 to $3.60 per share range. The company also revised 2002 ongoing earnings guidance to between $3.70 and $3.80 per share, compared with earlier expectations of $3.80 to $3.90 per share. Actual earnings for 2001 will be announced in January.

“Extremely mild weather and the recession hurt earnings in the fourth quarter and will dampen results in what was otherwise an excellent year,” said E. Linn Draper Jr., AEP chairman, president and chief executive officer. “While continued economic weakness will also likely affect 2002, we remain strongly positioned to grow and build on our energy market leadership. We are a financially strong, asset-rich company with a sound wholesale-focused growth strategy, conservative risk management policies, and a significant regulated business.”

Regarding the effect of Enron’s collapse on energy markets, Draper said, "Recent events have put our entire industry under tremendous scrutiny. We are confident in the future of our country´s energy markets and our ability to meet commitments and deliver value for shareholders over the long term. We expect to remain one of the industry’s strongest participants in this market."

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 North America in wholesale electricity and wholesale natural gas volume. 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.

The comments set forth above include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including (1) statements concerning the Company´s plans, objectives, expected performance and expenditures and (2) other statements that are other than statements of historical fact. These forward-looking statements reflect assumptions, and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from forward-looking statements are electric load and customer growth, abnormal weather conditions, availability of generating capacity, the ability to recover net regulatory assets and other stranded costs in connection with deregulation of generation, the outcome of environmental regulation and litigation, the impact of fluctuation in commodity prices and interest rates, and other risks and unforeseen events over which the Company has no control. The reader is also directed to the Company´s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company´s results of operations and financial condition. Furthermore, historical results may not be indicative of the Company´s future performance.