COLUMBUS, Ohio, Sept. 28, 2000 -- The stipulated transition plan for American Electric Power (NYSE:AEP) was approved today by the Public Utilities Commission of Ohio. The approval clears the way for AEP’s Ohio customers to choose an alternate electric supplier, with service beginning as soon as Jan. 1.

AEP’s operating companies, Columbus Southern Power Company (CSP) and Ohio Power Company (OP), serve nearly 1.3 million customers. The company had reached a stipulated settlement agreement with intervenors in May.

“For the most part, we’re pleased with the approval,” said Floyd Nickerson, AEP Ohio president. “However, we disagree with the PUCO’s treatment of the gross receipts tax, and we will be asking for a rehearing on this issue.

“Still, scores of AEP employees have been working hard this past year on the systems and processes necessary to turn the concept of choice into a seamless reality for our customers on Jan. 1.”

Terms of the plan, which focused on provisions to facilitate the development of the retail electric market, include:

• Residential customers who do not switch will receive 5 percent off the generation portion of their bills through the market development period.

• The first 25 percent of CSP’s residential customers who switch will not be required to pay the generation component of current rates and will also receive a shopping incentive of 0.25 cents per kilowatt-hour. Any unused portion of the shopping incentive will be used by AEP to reduce transition charges.

• The first 20 percent of OP’s residential customers who switch as of Dec. 31, 2005, will be relieved of their obligation to pay transition charges for 2006 and 2007 – a savings of 0.25 cents per kilowatt-hour.

• The notice period for commercial and industrial customers who are under contract with AEP, but who choose to switch, is 90 days.

• Transition charges will end by Dec. 31, 2007, for OP and by Dec. 31, 2008, for CSP.

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 also is 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.