Columbus, Ohio, and Dallas, Texas (May 11, 1999) -- The Oklahoma Corporation Commission (OCC) today unanimously approved the proposed merger between American Electric Power Company, Inc., (NYSE: AEP) and Central and South West Corporation (NYSE: CSR). The decision follows a partial settlement between AEP, CSW, the Attorney General's office, the OCC Public Utility Division and the OCC Consumer Services Division. Among the terms of the Oklahoma settlement, AEP and CSW have agreed to share net merger savings with customers of CSW's subsidiary, Public Service Company of Oklahoma (PSO), as well as shareholders, effective with the merger closing; to not increase PSO's base rates above their current levels prior to Jan. 1, 2003; to file to join a regional transmission organization by Dec. 31, 2001; and to implement additional quality-of-service standards for PSO. Oklahoma's share of the guaranteed net-merger savings -- approximately $50.2 million over the first five years after the merger is consummated -- will be split between PSO's customers and AEP shareowners, with customers receiving approximately 55 percent of the savings. "OCC approval of the merger increases the momentum that has been building over the last few months," said E. Linn Draper Jr., AEP's chairman, president and chief executive officer. "As progress continues in our state jurisdictions, we also are working to resolve issues with other parties in the upcoming proceeding before the FERC. We have announced settlements with six wholesale customers. We look forward to additional settlements as we prepare for the June hearing at the FERC." Action by the OCC marks the second approval by a state regulatory commission within CSW's service territory and follows several announcements of settlements over the last few weeks. On April 26, 1999, the Indiana Utility Regulatory Commission (IURC) approved a merger settlement that will result in Indiana customers receiving merger benefits and included a commitment by the IURC to not oppose the merger during consideration of the merger agreement by the Federal Energy Regulatory Commission and the Securities and Exchange Commission. AEP and CSW on May 4 announced a merger settlement with the General Counsel of the Public Utility Commission of the Texas, the State of Texas, the Texas Industrial Energy Consumers, the Low Income Intervenors, the Office of Public Utility Counsel and the Steering Committee of the Cities of McAllen, Corpus Christi, Victoria, Abilene, Big Lake, Vernon and Paducah. On April 28, a settlement agreement was reached with the International Brotherhood of Electrical Workers (IBEW) that has resulted in the IBEW local unions withdrawing their opposition to completion of the merger. The Nuclear Regulatory Commission has approved a license transfer application related to the merger. AEP and CSW have already settled with several intervenors at the federal level. The Arkansas Public Service Commission has granted conditional approval of the merger. Hearings have been postponed in Louisiana, as AEP and CSW work with all parties in an attempt to settle all issues in that proceeding. The merger also requires approval of the Federal Energy Regulatory Commission, the Securities and Exchange Commission and the Department of Justice. 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.