CHARLESTON, W.Va., March 30, 2012 – Appalachian Power, along with Wheeling Power, today submitted its annual filing to the Public Service Commission of West Virginia (PSC) reporting fuel costs. Both companies are subsidiaries of American Electric Power (AEP). The Expanded Net Energy Cost (ENEC) is designed to reimburse the company for past and ongoing costs of fuel (primarily coal) and purchased power.

The company requested no ENEC rate change this year. In its filing, Appalachian asked the PSC to authorize the issuance of Consumer Rate Relief Bonds as allowed by legislation passed this year. The bonds will be used to pay for the unrecovered balance of past fuel costs, as well as this year’s anticipated costs. Current ENEC rates are expected to cover the cost of repaying the bonds as well as recover ongoing ENEC costs.

Coal and purchased power costs have escalated for Appalachian Power’s customers in the last several years. In 2009, the PSC issued an order to spread out the costs of coal purchased in 2008 and 2009, when coal prices spiked to record highs, over a four-year period. However, electricity sales continue to be depressed and coal prices have been higher than forecasted, so Appalachian still faces an under-recovery of $356 million in ENEC costs. Without the Consumer Rate Relief Bonds, customers would have faced a 30 percent increase this year to allow recovery of these past costs.

“We’re aware that an increase in utility bills is difficult for our customers, and we’re grateful that the W.Va. Legislature and the Governor saw fit to support this option,” said Appalachian Power President and COO Charles Patton. “We also appreciate the support of the PSC Staff, Consumer Advocate Division, AARP and large industrial users for this legislation. All customers benefit from this innovative solution.”

Today’s filing also includes costs for two other projects, neither of which cause an increase in rates. First, the company requested an additional $2.3 million in cost recovery for the installation and operation of federally-mandated environmental control equipment at its John Amos plant. It also requested recovery for $32.1 million in costs associated with the construction and operation of the new combined cycle natural gas Dresden Plant, which began commercial operation early this year.

Rates for Appalachian’s customers are almost 20 percent below the national average. The national average residential price for electricity is 11.4 cents per kilowatt-hour, compared to Appalachian’s 9.7 cents. Appalachian offers several ways for customers to manage their energy usage:

• The best way to avoid the spikes caused by winter heating and summer cooling is to sign up for the Average Monthly Payment Plan, which evens out monthly bills.
• Appalachian Power launched several new energy efficiency programs last year for residential customers:
  • Home Energy Assessment – A professionally trained energy technician will come to a home and help assess how much energy the home uses and evaluate what measures would help improve efficiency. Rebates are also available. For more information and to schedule an appointment, call 1-888-446-7719.
  • Online Energy Checkup – Go to AppalachianPower.com to complete a home energy assessment and learn more about a home’s energy use. It takes less than 10 minutes to complete.
  • SMART Lighting Program – Customers can receive instant rebates on ENERGY STAR® CFL lighting at select retail stores. A list of participating stores is available at AppalachianPower.com.
  • Low Income Weatherization Program – This program provides weatherization products and services to residential customers in need of help reducing their energy bills. Local Community Action Agencies can be found at www.communityactionpartnership.org or by calling 1-304-347-2277.
• Programs are available for commercial and industrial customers too. For more information, visit AppalachianPower.com.
• Appalachian Power’s website (AppalachianPower.com) has a section dedicated to simple energy efficiency tips.

                                                                                                                ###

This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are canceled) through applicable rate cases or competitive rates; new legislation, litigation and government regulation, including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance); resolution of litigation (including disputes arising from the bankruptcy of Enron Corp. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth or contraction in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impacting AEP’s ability to refinance existing debt at attractive rates; AEP’s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading markets; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities; changes in utility regulation, including the implementation of the recently passed utility law in Ohio and the allocation of costs within regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the impact of volatility in the capital markets on the value of the investments held by AEP’s pension, other postretirement benefit plans and nuclear decommissioning trust and the impact on future funding requirements; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.