PLAQUEMINE, La., June 27, 2000 – Officials of The Dow Chemical Company (NYSE: DOW) and American Electric Power (NYSE: AEP) have signed a letter of intent that will lead to the construction of a new, state-of-the-art, cogeneration plant at Dow’s Plaquemine, La., chemical complex. The 900-megawatt, natural gas-fired power plant will provide electricity and steam to Dow´s Plaquemine facility. Construction of the $325 million plant is expected to begin in 2001 with start-up scheduled for 2002. The facility will be developed by AEP and operated by Dow.

"This power plant will enable Dow to be more energy efficient in producing over 50 different products at our 23 units and allow us to grow to meet the needs of our customers," said Chris Mudd, Dow’s Energy Commercial Manager for Louisiana. “Dow has generated its own power in Plaquemine since 1957 and is one of the largest co-generators in the world." Dow has a long-standing commitment to co-generation since this technology combines efficiency gains with a reduced impact on the environment. Earlier this year, the U.S. Environmental Protection Agency and the Department of Energy recognized Dow’s leadership in co-generation with the Energy Star Award for its Texas energy project.

Ross Metersky, director of project development for AEP, added, “This new facility will bring much-needed generating capacity to Louisiana using environmentally and energy efficient technology." Capacity or energy received by AEP from the project is intended to be sold under long-term contract(s).

AEP Pro ServSM, Inc., will provide engineering, procurement and construction services on the project. AEP Pro Serv is the non-regulated professional services arm of American Electric Power. AEP Pro Serv provides its clients with a full array of project management, environmental, engineering, construction, operations, technical services and maintenance expertise. The AEP subsidiary is currently developing a six-unit, 500 MW, gas-fired facility in Ceredo, West Virginia for Columbia Electric Corporation, and a three-unit, 510 MW, gas-fired facility in Northwest Ohio for National Power Cooperative, Inc., a wholly owned subsidiary of the Ohio Rural Electric Cooperatives.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $19 billion, Dow serves customers in 162 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 39,000 employees seek to balance economic, environmental and social responsibilities.

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.

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