American Electric Power, Central and South West File for Merger Approval With Securities and Exchange Commission

Oct. 13, 1998•News Release

COLUMBUS, Ohio and DALLAS, Texas Oct. 13, 1998 -- American Electric Power Company, Inc. ("AEP")[NYSE: AEP] and Central and South West Corporation ("CSW") [NYSE: CSR] today jointly filed a request with the Securities and Exchange Commission (SEC) for approval of their proposed merger. As previously announced, the proposed merger of AEP and CSW would create a company that would serve 4.7 million domestic customers in 11 states. The two companies today have approximately 25,000 employees, approximately 38 million kilowatts of generating capacity and annual electricity sales (both retail and wholesale) of more than 200 billion kilowatthours. Each company also has a number of international operations, including regional electric distribution companies in the United Kingdom. The new company will be named American Electric Power Company, Inc. and have its corporate headquarters in Columbus, Ohio. Each company's shareholders overwhelmingly approved the merger plans earlier this year. "AEP and CSW are the right fit," said E. Linn Draper Jr., chairman, president and chief executive officer of AEP, who will be chairman of the merged company. "We both excel at customer service. We both are among the lowest-cost electricity generators in the United States. We both place a premium on innovation. And, we both are committed to leading our industry into a competitive future." The filing outlines a number of major benefits of the merger to AEP and CSW customers and shareholders. These benefits include: -- $2 billion in net non-fuel operations and maintenance savings over 10 years; -- $98 million in net fuel cost savings over 10 years; -- Increased financial strength, improved capital structure and an improved position in credit markets; -- Optimization of business practices, allowing the new company to serve customers more efficiently and effectively, and be better equipped to keep rates low in an increasingly competitive electric utility industry; -- Continued high quality of service from two award winning utilities; and -- Greater diversification of customer base, generating resources and service territory. Company officials said they are confident that the merger meets the standards set forth by the Public Utility Holding Company Act of 1935, which the SEC administers. With today's SEC filing, AEP and CSW have completed all but two of the filings required for approval of the proposed merger. AEP and CSW officials are optimistic that the regulatory schedule will allow the merger to be closed in the second quarter of 1999. One of the four state commissions whose approval is necessary for the merger, Arkansas, has issued an order approving the merger, subject to the findings issued when the commission reviews the proposed regulatory plan associated with the merger. Filings for approval of the merger, or a finding that the merger is in the public interest, have also been made with the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and the state utility commissions in Arkansas, Texas, Louisiana and Oklahoma. AEP and CSW plan to make the remaining filings -- with the Federal Communications Commission and the U.S. Department of Justice/Federal Trade Commission -- over the next few months. Central and South West is a Dallas-based public utility holding company that owns four electric utility subsidiaries with 1.7 million customers, a regional electricity company serving 2 million customers in the United Kingdom, and nonutility subsidiaries involved in energy-related investments as well as subsidiaries that offer telecommunications, energy efficiency and financial transactions. On Dec. 22, 1997, CSW announced a definitive merger agreement for a tax-free, stock-for-stock transaction with AEP. American Electric Power Company, Inc., 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.

For More Information, Contact: American Electric Power: Pat Hemlepp 614/223-1620 Central and South West: Larry Jones 214/777-1276

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