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AEP Joins New EPA Initiative; Reinforces Commitment to Environmental Protection

April 20, 1999

COLUMBUS, Ohio, April 20, 1999 -- In a move to help protect the environment and improve its bottom line, American Electric Power (NYSE: AEP) became a Charter Partner in the U.S. Environmental Protection Agency´s (EPA) new voluntary partnership aimed at reducing emissions of sulfur hexafluoride (SF6). SF6 is a powerful greenhouse gas that is used within the electric power industry as insulation in electrical transmission and distribution equipment, such as circuit breakers. The name of the new initiative is the SF6 Emissions Reduction Partnership for Electric Power Systems.

Since SF6 is relatively expensive, AEP´s move to reduce its emissions of this greenhouse gas should create economic savings for the company. SF6 is a persistent and potent greenhouse gas, with a global warming potential that is 23,900 times greater than carbon dioxide (CO2) over a 100-year time horizon and has an atmospheric lifetime of 3,200 years.

Dale Heydlauff, AEP´s vice president - environmental affairs, said, "This Partnership represents an important extension of our Climate Challenge commitment, and is now part of our ongoing effort to identify cost-effective, voluntary actions to reduce, avoid or sequester greenhouse gas emissions. It makes good business sense while it benefits the environment -- both priority goals for AEP."

EPA representatives are equally as pleased to join AEP in this new voluntary program. Paul Stolpman, director of EPA´s Office of Atmospheric Programs, said, "AEP´s decision to work with EPA to endeavor to reduce emissions of this extremely potent greenhouse gas demonstrates a true commitment to protecting the environment." Kathleen Hogan, director of EPA´s Atmospheric Pollution Prevention Division, added, "EPA applauds AEP as an industry leader for its efforts to reduce emissions of SF6. By joining with EPA in this new partnership, AEP is showing that protection of our global environment and good business can go hand in hand."

Electric power companies that join the partnership sign a Memorandum of Understanding (MOU) that details the roles of both EPA and the partner for furthering the goal of emissions reductions. According to the terms of the MOU, EPA will: act as a clearinghouse for technical information on successful strategies to reduce SF6 emissions; provide partners with recognition for their achievements in reducing SF6 emissions; serve as a credible repository for data on the emissions and reduction achievements of the partners; and work to obtain commitments from all electric power system operators to join the partnership. Partners agree to: where possible, estimate SF6 emissions during a starting year between 1990 and 1998; annually inventory emissions of SF6 using an emissions inventory protocol provided by EPA; establish a strategy for replacing older, leaking pieces of equipment; implement SF6 recycling; ensure that only knowledgeable personnel handle SF6; and submit annual progress reports.

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:
Deb Strohmaier
Senior Media Representative
American Electric Power
614/223-1656

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