COLUMBUS, Ohio, Feb. 9, 2004 - Columbus Southern Power Company and Ohio Power Company, two subsidiaries of American Electric Power (NYSE:AEP), today filed a plan that will keep their electric rates among the lowest in Ohio and allow the companies to begin recovering costs for environmental improvements.

The rate plan, filed with the Public Utilities Commission of Ohio (PUCO), is proposed to address rates following the end of Ohio’s electric customer choice market development period, which ends Dec. 31, 2005. In addition to providing rate stability and certainty for customers, the plan is intended to facilitate the development of a competitive market and the improvement of the environmental performance of the companies’ low-cost generation capacity that is so critical to the vitality of Ohio’s economy.

Under the plan, a monthly Ohio Power residential bill would increase, on average, from about $68 today to about $77 by the end of 2008. A monthly Columbus Southern Power residential bill would increase from about $80 today to about $90 by the end of 2008.

“I believe this plan is a ‘win’ all around - for customers, shareholders and the environment,” said Michael Morris, AEP president and chief executive officer. “Customers will still have rates that are among the lowest in the state. Shareholders will receive a fair return on their investment in the companies’ operations during this period. And with the dramatic level of investment we must make now to meet environmental regulations, Ohioans will have cleaner air while being assured that the generating plants providing their electricity remain viable, low-cost contributors to Ohio’s economic health. While no customer ever welcomes a price increase, these increases are very modest for the benefit received.”

The base rates for electricity have not increased since 1994 for Columbus Southern Power customers and since 1995 for Ohio Power customers. Together, the companies serve approximately 1.4 million customers in Ohio.

Morris noted that AEP customers have an advantage in that the companies’ plan continues to provide the opportunity for customers to choose their electric generation supplier, as provided by Ohio’s electric choice program. “We believe the rates for Ohio Power and Columbus Southern Power will continue to be competitive. Moreover, our plan provides our customers access to low-cost, reliable power with advance knowledge of what their rates will be,“ Morris said. “But it is equally important to note that customers still have the option to shop and switch to a competitive supplier.”

The rate stabilization plan was filed to provide price certainty for customers when the market development period ends. The market development period was established to allow customers and utilities to make the transition to electric competition. It began Jan. 1, 2001, and ends Dec. 31, 2005.

“We support the commission’s goal to provide stable rates for our customers,” said Morris. “That’s why, with the proposed increases on the generation portion of rates, we’ve also proposed an overall cap on any additional generation rate adjustments we may need to recover new costs required by law.”

American Electric Power owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.