PUCO Approves Transition Plans and American Electric Power's Transition Plan Cases.

COLUMBUS, Ohio, Sept. 28 /PRNewswire/ --

The Public Utilities Commission of Ohio (PUCO), today approved this stipulation in the American Electric Power (AEP) Co.'s electric transition plan cases which create an opportunity to begin a competitive retail electric market in Ohio and provide opportunities for customers to begin saving on their electric bills beginning January 1, 2001. "AEP customers can begin to shop for competitive generation services," said PUCO Chairman Alan Schriber.

"The plans came before us as a settlement in which the overwhelming majority of intervenors either supported or did not oppose the resolution of the very complex issues inherent in these cases," Schriber added. "Nevertheless, the Commissioners carefully scrutinized every aspect of the settlements and determined that approval is in the public interest. Considered in its totality, we believe that our order approving the settlement will provide AEP customers the protection they are entitled to, along with the opportunity to acclimate themselves to the idea of shopping for electricity."

AEP is a supplier of electricity and energy-related services throughout the world. It is the parent company of Ohio Power Company and Columbus Southern Power Company. These two companies provide electric service to approximately 1,325,000 customers in Ohio.

The terms of the stipulations provide for rate freezes, rate reductions, flexibility for larger contract customers not otherwise available and low- income energy efficiency grants and defined transition periods for AEP.

Under the terms of the agreements, AEP (on behalf of Ohio Power Co. and Columbus Southern Power Company) agrees to:

1. Freeze rates through either the end of the market development period

or 2005, whichever is shorter, except to reflect a 5 percent reduction

to the generation component of residential customer rates starting

January 1, 2001;

2. Provide shopping credits, incentives and switching procedures that

will allow customers to shop for alternative generation suppliers;

3. Absorb $40 million of Consumer Education, Customer Choice

Implementation and Transition Plan Filing Costs; and

4. Waive the regulatory transition charge for certain residential Ohio

Power Company customers that switch generation providers between

January 1, 2006 and December 31, 2007.

On June 22, 1999, the Ohio General Assembly passed legislation requiring the restructuring of the electric utility industry and providing for retail competition with regard to the generation component of electric service (Am. Sub. S.B. 3 of the 123rd General Assembly). Governor Bob Taft signed this legislation on July 6, 1999 and most provisions of S.B. 3 became effective on October 5, 1999, requiring each electric utility to file with the PUCO a transition plan for the company's provision of retail electric service in Ohio.

On December 30, 1999, AEP filed transition plans for Ohio Power Company and Columbus Southern Power with PUCO. On May 8 and June 19, 2000, stipulations were filed on behalf of AEP, the PUCO Staff, the Ohio Consumers' Counsel, Industrial Energy Users-Ohio, the Appalachian People's Action Coalition, Association for Hospitals and Health Systems, (dba Ohio Hospital Association), Buckeye Power, Inc. Columbia Energy Services Corporation, Columbia Energy Power Marketing Corporation, Enron Energy Services, Inc., The Kroger Company, Mid-Atlantic Power Supply Association, the Ohio Council of Retail Merchants, Ohio Department of Development, the Ohio Manufacturers' Association, National Energy Marketers Association, Ohio Partners for Affordable Energy, Ohio Rural Electric Cooperatives, Inc., PECO Energy Company (dba Exelon Energy), WPS Energy Services, Inc., NewEnergy Midwest, LLC, Strategic Energy L.L.P., Ameritech New Media, Inc., and WSOD Community Action Commission, Inc.

Evidentiary hearings in this case were held in May and June, 2000. Local public hearings were conducted on June 5 and 22 in East Liverpool and Columbus, respectively.

Case No. 99-1729-EL-ETP

99-1730-EL-ETP