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AMERICAN ELECTRIC POWER PROVIDES ANALYSIS OF CLINTON PROPOSAL: INDUSTRIAL CUSTOMERS WOULD SEE 7.2 PERCENT HIKE

 COLUMBUS, Ohio, Feb. 18 /PRNewswire/ -- President Clinton's proposed 25.7-cent tax per million Btu of fuel would cost customers of American Electric Power (NYSE: AEP) approximately $250 million, the company said today.
 If Congress passed the administration's proposed tax on British thermal units -- Btu's, the measurement of the heat content of fuels -- average residential customers would see increases of about $31 a year throughout the AEP System, a 4.6 percent increase. Commercial customers would face a 4.9 percent increase.
 For industrial customers, the average increase would be about 7.2 percent, and higher in some areas where energy-intensive industries are served by the company.
 "Our top 15 industrial customers alone would face a $40 million increase, nearly 10 percent higher than their current electric energy charges. We estimate that our industrial customers will pay more than $100 million in new energy tax-related fuel costs if the Clinton proposal is enacted," said Richard E. Disbrow, chairman and chief executive officer.
 "These businesses employ thousands of men and women in the seven states we serve. Some of them, particularly in aluminum, steel, chemicals and paint, are looking for a strong economic recovery and support for their efforts to meet global competition," Disbrow said.
 "We want to work with the President on the tough deficit problem and we recognize the need to raise revenues, but it would be unfortunate to derail our fragile economic recovery in the process. Continued economic growth is an essential ingredient in attacking the deficit.
 "Injecting energy taxes into the mix, together with a possible increase in the corporate tax rate, could damage our industrial customers' efforts to meet world-class competition," Disbrow said.
 AMERICAN ELECTRIC POWER SYSTEM
 RETAIL ENERGY SALES
 EFFECTS OF PROPOSED BTU ENERGY TAX
 ENERGY TAX
 1992 ENERGY REVENUE
 TOTAL SALES SALES TAX INCREASE
 (MILLIONS OF KWH) (THOUSAND $) (PERCENT)
 RESIDENTIAL 26,998 76,427 4.6
 COMMERCIAL 19,660 54,282 4.9
 INDUSTRIAL 41,641 109,014 7.2
 TOTAL 88,299 239,723 5.6
 TYPICAL CUSTOMERS KWH $ PERCENT
 AVERAGE RESIDENTIAL 10,980 31 4.6
 COMMERCIAL 1,000,000 2,761 NA
 5,000,000 13,805 NA
 15,000,000 41,415 NA
 INDUSTRIAL 5,000,000 13,090 NA
 25,000,000 65,449 NA
 50,000,000 130,897 NA
 100,000,000 261,795 NA
 500,000,000 1,308,974 NA
 -0- 2/18/93
 /CONTACT: Luke M. Feck, senior vice president, public affairs, American Electric Power Company, 614-223-1650/
 (AEP)


CO: American Electric Power Company ST: Ohio IN: UTI SU:

BM -- CL023 -- 8144 02/18/93 17:30 EST
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Publication:PR Newswire
Date:Feb 18, 1993
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