TULSA, Okla., December 28, 2007 – Public Service Company of Oklahoma (PSO), a unit of American Electric Power (NYSE: AEP), today filed a proposal with the Oklahoma Corporation Commission (OCC) that seeks recovery of costs associated with the cancelled Red Rock power generation facility.  As proposed, the plan would not increase PSO’s existing customer rates.
 
In the filing, PSO requests recovery of approximately $21 million for its share of the costs of the pre-engineering, design, equipment reservation and planning for the plant, and asks the OCC to allow the company to use proceeds from the sale of emissions allowances to offset those costs.
 
“By using proceeds from sales of our emissions allowances in this manner, we can recover the costs we incurred in a good faith effort to serve our customers, while avoiding an increase in customers’ rates,” said Stuart Solomon, PSO president and chief operating officer.
 
A joint project of PSO, Oklahoma Gas & Electric Company (OG&E) and the Oklahoma Municipal Power Authority (OMPA), the proposed 950-megawatt Red Rock coal-fired facility failed to get the regulatory pre-approval sought by PSO and OG&E.  Subsequently, the three partners agreed to terminate plans to build and operate the plant.
 
PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving approximately 520,000 customers in eastern and southwestern Oklahoma.  Based in Tulsa, PSO has more than 4,100 megawatts of generating capacity, and is the largest provider of wind energy in the state.  News releases and other information about PSO can be found on the World Wide Web at www.PSOklahoma.com.
 
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states.  AEP ranks among the nation’s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S.  AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.  AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas.  AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas).  AEP’s headquarters are in Columbus, Ohio.