Columbus, Ohio and Dallas, Texas (October 1, 1999)-- American Electric Power Company, Inc, (NYSE: AEP) and Central and South West Corporation (NYSE: CSR) announced that Kathleen Sanford, administrative law judge for the Texas State Office of Administrative Hearings, on Thursday issued a proposal for decision recommending that the Public Utility Commission of Texas (PUCT) approve their pending merger. CSW is the parent company of Central Power and Light Company, West Texas Utilities Company and Southwestern Electric Power Company. CSW’s electric operating companies serve a combined total of 988,300 customers in Texas. In her proposal for decision, the adminstrative law judge determined that, consistent with the terms of an Integrated Stipulation and Agreement between AEP, CSW, the PUCT staff and other parties, the merger is in the public interest. The stipulated settlement will result in combined rate reductions totaling $221 million over a six-year period for retail customers of the three CSW Texas electric operating companies after the merger is completed. The stipulated agreement, which was announced in May, also calls for divestiture of 1,604 megawatts of CSW’s generating capacity within Texas. The PUCT is scheduled to consider the proposal for decision during its open meeting on November 2. Although CSW and AEP cannot predict what the PUCT’s final decision will be, the administrative law judge’s recommendations should pave the way for a favorable outcome, according to E. Linn Draper Jr., AEP’s chairman, president and chief executive officer. “Issuance of the administrative law judge’s proposal for decision is tremendous news,” Draper said “The recommendations reaffirm the many benefits of this merger to Texas customers. We look forward to the final decision by the commissioners.” AEP and CSW announced their intention to merge on December 22, 1997. The merger has received conditional approval by state regulatory commissions in Arkansas and Louisiana, and approval in Oklahoma, three of the four states within CSW's service territory. The Oklahoma order approved an Oklahoma Corporation Commission (OCC) staff settlement recommendation to the OCC to not oppose approval of the merger by the FERC. AEP and CSW reached a settlement with the FERC trial staff in which the staff supports a finding that the merger will have no adverse effect on competition. The FERC hearings concluded on July 19. On July 28, the FERC issued an order imposing a procedural schedule on the FERC administrative law judge calling for his proposal for decision no later than November 24 and stating its intention to act on the pending merger no later than February or March of next year. AEP and CSW have announced settlement agreements with the International Brotherhood of Electrical Workers (IBEW) and the Utility Workers Union of America (UWUA) resulting in the IBEW and UWUA local unions withdrawing their opposition to completion of the merger; as well as with the Indiana Utility Regulatory Commission (IURC) resulting in Indiana customers receiving merger benefits and including a commitment by the IURC not to oppose the merger during consideration of the merger agreement by the FERC and the SEC. AEP and CSW also have announced a settlement agreement with key parties in Kentucky that has been approved by the Kentucky Public Service Commission, as well a settlement agreement with the Missouri Public Service Commission addressing that commission's concerns about the effect of the merger on retail competition in the state. Additionally, AEP and CSW have reached settlements with a variety of wholesale customers who had intervened in federal proceedings. The Nuclear Regulatory Commission has approved a license transfer application related to the merger. The merger requires approval by the FERC and the SEC and review by the Department of Justice. Upon completion of the merger, the new company will be called American Electric Power. Central and South West Corp. is a global, diversified public utility holding company based in Dallas. CSW owns four electric operating subsidiaries serving 1.7 million customers in Texas, Oklahoma, Louisiana and Arkansas; a regional electricity company in the United Kingdom; other international energy operations and non-utility subsidiaries involved in energy-related investments, telecommunications, energy efficiency and financial transactions. 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. News releases and other information about CSW can be found on the World Wide Web at http://www.csw.com.