COLUMBUS, Ohio, Feb. 4, 1999 -- The decision of the Supreme Court, Nassau County, New York, to annul a contract that connected the evaluation and construction phases to bring additional power to the Island is "a good decision for the ratepayers of Long Island," according to John Provanzana, general manager, AEP Resources Service Company (AEP RESCo). The Long Island Power Authority (LIPA) had awarded the bundled contract to Transenergie, a subsidiary of HydroQuebec, last year. Three firms responded to LIPA's RFP of January 1998 to evaluate the technical, environmental and economic feasibility of transmitting electrical power to Long Island via a subsea cable from the mainland. Enron bid $407 million for the construction phase; Transenergie submitted a proposal ranging between $179 million and $203 million; and AEP RESCo bid $157 million. AEP RESCo had filed suit to set aside LIPA's contract award to Transenergie. "In our suit, we asked for a fair chance to compete on an equal basis," Provanzana said. "The judge's decision to annul the contract sets up a new round of competition on a fair and even playing field, which will be in the best interests of consumers. We are prepared to work with LIPA and Transenergie to work out terms that will implement full and equal cooperation, according to the judge's order. "We were the lowest bidder because we would be using lower-cost, patented, state-of-the-art, but proven, technology," Provanzana said. "Since this project will be supplying power to Long Island for decades, billions of dollars are ultimately at stake for consumers. We want to ensure that the right decision is made at the start." AEP RESCo, headquartered in Columbus, Ohio, provides customized engineer, procure and construct services -- including substation, transmission line, energy conversion and power generation projects -- for domestic and international customers. A variety of additional services, such as system infrastructure planning, testing, training and financing, can be bundled with each project. AEP RESCo has extensive project experience in the United States, the People's Republic of China, Taiwan, Krgyzstan, Russia, Georgia, Armenia, Pakistan and Venezuela. AEP RESCo is a wholly owned subsidiary of American Electric Power (NYSE: AEP). 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.