WASHINGTON, D.C., April 26, 2000 -- American Electric Power (NYSE:AEP) has announced its support of two new research and development efforts that will focus attention on the technical feasibility and economic viability of new technologies to remove carbon dioxide from power plant stack emissions.

Dale E. Heydlauff, AEP´s vice president of environmental affairs, announced AEP´s involvement in the carbon capture and storage projects in remarks he delivered today at a conference on "Innovative Solutions to Global Climate Change," in Washington, D.C., sponsored by the Pew Center on Global Climate Change and the Royal Institute of International Affairs.

"To date, the focus of efforts to address the global climate change issue has centered on proposed reductions in carbon dioxide emissions," said Heydlauff. "These projects are among the first of their kind to explore the feasibility and ramifications of capturing carbon dioxide from power plant emissions and permanently disposing of it in a manner that minimizes environmental impacts." Coupled with a third project that is already under way, the company´s total in-kind and financial commitment to carbon management research will exceed $300,000 through 2001. Carbon dioxide is one of several gases that result from the combustion of fossil fuels that is suspected of contributing to a warming of the earth´s climate.

AEP-Battelle

AEP will sign an agreement with Battelle Columbus Laboratories to develop and prove concepts for separating carbon dioxide (CO2) from power plant exhausts and disposing of the captured gas in deep geologic formations. The effort will take the form of two separate research projects.

The company will fund research to evaluate the effectiveness of a process for absorbing CO2 from flue gas. The carbon separation project will evaluate the characteristics of a unique dynamic film to chemically absorb CO2 from flue gas emissions. A separate sequestration proposal is designed to explore the feasibility of storing, or sequestering, carbon dioxide in deep sedimentary formations. These regional formations contain brackish, non-potable water and are located 2,500 feet or deeper below ground.

Each project will include three distinct phases: 1) proof of concept, 2) development of a prototype model, and 3) development of a pilot-scale demonstration project.

AEP has committed to involvement in the first two phases and will evaluate further participation based on the results of the Phases I and II. The total projected cost of the research in Phases I and II is $1.3 million. AEP´s cash and in-kind contributions to the project will be in excess of $200,000. The projected costs in the third phase are expected to exceed $10 million reflecting the construction of a full-scale pilot system.

Before the project moves forward, Battelle will submit a proposal seeking additional financial support for the project from the U.S. Department of Energy (DOE) and the Ohio Coal Development Office (OCDO). Research in the first and second phases will conclude in mid-2002.

AEP-Massachusetts Institute of Technology

AEP is also supporting carbon storage study and research as a member of the Massachusetts Institute of Technology´s (MIT) Energy Choices Consortium. The Consortium is being established for the purpose of conducting assessment and research projects on technologies that have the potential to reduce emissions of greenhouse gases resulting from the use of fossil fuel resources.

MIT has developed a "Carbon Sequestration Initiative" designed to explore the use of carbon management as an alternative to the large-scale replacement of fossil fuels with non-carbon energy sources. The program, which begins in June 2000, is designed to provide members with an objective source of assessment and information on carbon management, stimulate new cutting edge research and provide members with an information exchange on developing technologies. AEP´s three-year commitment to the Consortium´s efforts will involve a total contribution of $90,000.

"Our fossil-based resources have an ongoing role to play in helping society satisfy its growing need for a reliable supply of affordable electricity," said Heydlauff. "The Battelle and MIT projects will provide information that will help us develop new and innovative methods for managing the global climate change issue without adversely affecting power supply reliability and future economic growth."

AEP-ABB

AEP´s third initiative, which was announced in January, involves a partnership with ABB Combustion Engineering, ABB Lummus Global, the Ohio Department of Development´s Coal Development Office and the U.S. Department of Energy´s National Energy Technology Laboratory (NETL), that will explore the viability and effectiveness of three different technical processes for capturing carbon from power plant exhaust streams.

AEP´s Conesville Units 5 and 6, located near Coshocton, Ohio, will serve as the test platforms for the project. The Conesville units have a number of characteristics that make them attractive to the researchers, including the fact that both of the 375 megawatt units are equipped with a flue gas desulfurization system (scrubbers) that remove sulfur dioxide from the stack emissions.

The project will involve the evaluation of three separate retrofit technology options:

• Coal combustion in air, followed by CO2 separation using an absorption/stripping process developed by Kerr-McGee/ABB Lummus Global.
  
  
• Coal combustion in an O2/CO2 environment with CO2 recycling. This operation would require boiler modifications. The resulting combustion products would be primarily CO2.
  
  
• Coal combustion in air with oxygen removal and CO2 separation using tertiary amines. A tertiary amine scrubbing system can be used to absorb CO2 with considerably lower auxiliary power requirements.
  

In order to evaluate these options, major technical issues must be addressed, including boiler performance, oxygen levels, heat transfer, emission controls and system integration.

ABB Combustion Engineering will manage and perform the actual study and provide study results to the OCDO and NETL. Data will be collected over a 12-month period starting as early at May 2000.

The OCDO and NETL will each provide $250,000 to fund the project. ABB will provide an additional $150,000. AEP will make an in-kind contribution toward the project valued at $60,000. AEP´s contribution will take the form of consultation, along with financial and technical data and assistance in evaluating the three options.

"We believe it is very important to take a leadership role in this critical research," said Heydlauff. "Research, and the development and deployment of advanced technology, is the only way we´re going to be able to resolve this global-scale issue. We think that these initiatives are an important step in the right direction."

These research projects represent an extension of AEP´s commitment to the U.S. Department of Energy´s Climate Challenge voluntary program to reduce, avoid or sequester carbon dioxide emissions. Begun in 1995, AEP has undertaken a broad portfolio of actions that cumulatively will avoid nearly 10 million tons of carbon dioxide emissions this year.

AEP, a global energy company, is one of the United States´ largest investor-owned utilities, providing energy to 3 million customers in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West Virginia. AEP has holdings in the United States, the United Kingdom, China and Australia. Wholly owned subsidiaries provide power engineering, energy consulting and energy management services around the world. The company is based in Columbus, Ohio. On Dec. 22, 1997, AEP announced a definitive merger agreement for a tax-free, stock-for-stock transaction with Central and South West Corp., a public utility holding company based in Dallas.