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AEP Ohio seeks recovery of generation-related costs

October 25, 2007

Gahanna, Ohio (Thursday, October 25, 2007) -- AEP Ohio companies Columbus Southern Power (CSP) and Ohio Power (OP) yesterday filed an application with the Public Utilities Commission of Ohio (PUCO) in which they seek to recover incremental generation-related costs under their current Rate Stabilization Plans (RSP).

CSP and OP seek to recover $35.2 million and $11.9 million, respectively. The typical CSP residential customer, using 1,000 kWh per month, would see a generation rate increase of approximately $1.83 per month.  The typical OP residential customer, using 1,000 kWh per month, would see a generation rate increase of approximately $0.46 per month. The companies propose to recover the revenue through a monthly rider implemented over 12 months beginning in January 2008. Customers may avoid these charges by selecting another generation service provider.

Costs for which the Companies are seeking recovery in this filing are related to the Federal Clean Air Interstate Rule (CAIR), Federal Clean Air Mercury Rule (CAMR), as a new permit requirement at Ohio Power’s Mitchell Plant under the National Pollution Discharge Elimination System (NPDES), part of the Federal Clean Water Act, and the implementation of marginal losses within the PJM Interconnection.

Under their current Rate Stabilization Plans, approved by the PUCO in 2005, the Companies are authorized to seek recovery of generation-related costs incurred for complying with changes in laws, rules or regulations related to environmental requirements, security, taxes or regulatory requirements.

AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power.

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.


Jeff Rennie
AEP Ohio Corporate Communications
866-394-2860

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