TULSA, Okla., November 19, 2010 – Public Service Company of Oklahoma (PSO), a subsidiary of American Electric Power (NYSE: AEP), today filed a settlement agreement in its current rate case at the Oklahoma Corporation Commission (OCC). The settlement was reached during negotiations with all the parties to the case.
 
If approved by the Commission, the settlement will result in no change to PSO’s overall customer rates, and there will be only slight changes in how rates are spread among the various customer classes.

While the agreement keeps PSO’s rates at the same level overall, cost
allocation changes for PSO’s three customer classes will be as follows:

• Residential customers will see an increase of less than one-half of one percent, or about 35-cents for a customer who uses 1,000 kilowatt-hours of electricity a month.

• Commercial customers will see an increase of about 9/10ths of one percent.
• Industrial customers will see rates decrease by approximately 2.5 percent.

Although agreed to by all parties in the case, the settlement requires approval of the Corporation Commission. The agreement will be reviewed in a hearing at the OCC beginning December 6, and pending approval by the Commission, the new rates would go into effect no later than the first billing cycle in February 2011.
 
PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving more than 530,000 customers in eastern and southwestern Oklahoma. Based in Tulsa, PSO has 4,405 megawatts of generating capacity, and is the largest distributor of wind energy in the state. News releases and other information about PSO can be found on the World Wide Web at 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 nearly 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.