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KINGSPORT POWER FILES FOR 1.5 PERCENT INCREASE IN RATES IN JANUARY

November 22, 2011

Kingsport, Tenn., November 22, 2011 – Kingsport Power, doing business in Tennessee as AEP Appalachian Power, has filed a request with Tennessee regulators under its existing tariff to pass through to retail customers an increase in transmission costs. The company is requesting an overall increase of about 1.5 percent in electric rates effective January 1.

            Appalachian Power Company (APCo) provides Kingsport Power with transmission and generation services under a federally approved Interconnection Agreement. The Tennessee utility owns no power plants and purchases all of its power from APCo at wholesale rates regulated by the Federal Energy Regulatory Commission (FERC).  This filing with the TRA incorporates new surcharges in its Purchased Power Adjustment Rider (PPAR) to reflect changes in transmission costs.

Based on the filing, a Kingsport residential customer using 1,000 kilowatt-hours in a month can expect a bill of approximately $86.86, an increase of $1.24 per month. Even with the proposed increase, Kingsport Power rates remain among the lowest in the U.S. The company serves approximately 47,000 customers in eastern Tennessee.

Customers who have questions about their bill can contact the company on-line at www.appalachianpower.com or by phone at 1-800-967-4237.
            Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is a unit of American Electric Power (NYSE: AEP), one of the largest electric utilities in the United States, with 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.                                                                      

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Todd Burns

Corporate Communications Manager - VA/TN

(540) 985-2912, tfburns@aep.com

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