HERNDON, Virginia & COLUMBUS, Ohio, Aug. 1, 2000 – On April 28, Twelvepole Creek, LLC, awarded AEP Pro Serv^SM, Inc. the contract for the engineering, design, construction and project management of a 550-megawatt (MW) power plant located in Ceredo, W.Va. On July 5, the project achieved a major milestone with Twelvepole issuing Pro Serv a “full order to proceed” with the construction of the facility.

The Ceredo Generating Station is a 550 MW, simple cycle facility that will generate electricity for the East Central Area Reliability Council (ECAR) region. The project will be situated on a 22-acre site adjacent to Columbia Gas Transmission’s compressor station in Ceredo. The generating station will utilize the cleanest proven technology and will employ approximately 200 construction workers and up to 10 permanent employees. The total cost of the project is estimated at $140 million. The facility will begin commercial operation prior to the peak summer season in 2001.

Michael Gluckman, president of Columbia Electric, stated that, “The marriage of Columbia’s expertise in energy project development and Pro Serv’s experience in project construction and management will maximize the facility’s environmental and economic benefits both locally and throughout the ECAR region.”

James A. Howard, vice president – major projects for AEP Pro Serv, explained that the company is pleased to have the formal approval from Columbia. "We´ve mobilized our project management team and have started some initial site preparation activities," he said. "With the order to proceed, we´ll be able to rapidly move forward on the project."

The Ceredo project is the principal asset of Twelvepole Creek, LLC, a subsidiary of Columbia Electric. Columbia Electric, a wholly-owned, nonregulated subsidiary of Columbia Energy Group (NYSE: CG) develops, owns and operates state-of-the-art, efficient electric power generating facilities. Currently, Columbia Electric has four operating facilities totaling 748 MW, one 550 MW facility under construction and approximately 3,000 MW of gas-fired generation under development.

AEP Pro Serv, Inc., is the professional services subsidiary of American Electric Power (NYSE: AEP). The company provides its clients with a full array of project management, environmental, engineering, construction, operations, technical services and maintenance expertise. American Electric Power is a multinational energy company based in Columbus, Ohio. AEP is one of the United States´ largest generators of electricity with more than 38,000 megawatts of generating capacity. AEP is also one of the nation´s leading wholesale energy marketers and traders. AEP delivers electricity to more than 4.8 million customers in 11 states -- Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The company serves more than 4 million customers outside the U.S. through holdings in Australia, Brazil, China, Mexico and the United Kingdom. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.