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AEP Ohio Issues RFP for Renewable Energy Certificates

May 30, 2007

Gahanna, Ohio (Wednesday, May 30, 2007) – American Electric Power (NYSE: AEP) operating unit AEP Ohio announced today that it is seeking proposals for more than 50,000 megawatt-hours (MWh) of Renewable Energy Certificates (RECs). RECs represent the environmental attributes of power produced from renewable energy projects.

The Request For Proposal (RFP) solicits proposals from renewable energy developers, energy marketers and brokers to supply RECs sourced from a Renewable Resource located in the reliability region covered by the ReliabilityFirstCorporation, the regional reliability council approved by the North American Electric Reliability Corporation (NERC) which includes the territory served by AEP Ohio.

AEP Ohio seeks a total contract quantity of up to 50,500 MWh of RECs. Proposals are due June 20.

The company’s customers will have the opportunity to promote the development of renewable energy sources by purchasing at least two 100 kilowatt-hour (kWh) blocks of the RECs through AEP Ohio’s Green Pricing Option, beginning in September. Pricing for the 100 kWh blocks cannot be determined until bids are received and contracts for the RECs are awarded.

A copy of the RFP is available at AEP Ohio’s web site www.AEPOhio.com/go/rfp.

AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to 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. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.

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Definitions from the AEP Ohio RFP

Renewable Resource(s) – Wind, Solar Photovoltaic, Biomass Co-Firing of Agricultural crops and all energy crops, Hydro (as certified by the Low Impact Hydro Institute), Incremental Improvements in Large Scale Hydro, Coal Mine Methane, Landfill Gas, Biogas Digesters, Biomass Co-Firing of All Woody Waste including mill residue, but excluding painted or treated lumber and that has been brought into service on or after January 1, 1997.

ReliabilityFirstCorporation - the regional reliability council approved by the North American Electric Reliability Corporation (NERC) which includes the territory served by AEP Ohio.

Renewable Energy Certificates (RECs) -- also known as green certificates, green tags, or tradable renewable certificates, represent the environmental attributes of the power produced from renewable energy projects and are sold separate from the electricity produced from the generator.1 AEP Ohio customers will not purchase the electricity produced by the renewable energy projects, but the environmental attributes of the renewable energy that has been produced.2

A REC is, “The financial, regulatory and environmental credit, certificate, allowance or similar right that is related to the non-power attributes associated with generating one megawatt-hour of electricity from a Renewable Resource, whether arising pursuant to law, regulation, certification, markets, trading, off-set, private transaction, renewable portfolio standards, voluntary programs or otherwise which displaces generation from conventionally fueled sources as verified by a third party.”

MWh – megawatt-hour or 1,000 kilowatt-hours. A typical AEP Ohio residential customer consumes about 1,000 kilowatt-hours of electricity per month.



1 U.S. Department of Energy, http://www.eere.energy.gov/greenpower/markets/certificates.shtml?page=0
2AEP Ohio explanation. 
Jeff Rennie

AEP Ohio Corporate Communications

866-394-2860

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