AEP files with FERC to restructure its operations

AEP requested approval to transfer about 9,200 MW of AEP Ohio-owned generation to a new wholly owned company — AEP Generation Resources Inc.

Columbus, Ohio, November 1, 2012 — American Electric Power (AEP) has submitted filings to the Federal Energy Regulatory Commission (FERC) seeking approval to fully separate its Ohio generating assets from its Ohio distribution and transmission operations following an October 17 decision from the Public Utilities Commission of Ohio in the company's corporate separation case.

AEP requested approval to transfer about 9,200 MW of AEP Ohio-owned generation to a new wholly owned company — AEP Generation Resources Inc.

AEP also requested FERC approval to transfer AEP Ohio's current two-thirds ownership (867 MW) in the John E. Amos Plant Unit 3 (1,300 MW) to Appalachian Power and to transfer 800 MW of the 1,600-MW generating capacity of Mitchell Plant to Appalachian Power and the remaining 800 MW to Kentucky Power.

Additionally, AEP asked FERC to terminate the existing interconnection agreement, or pool, that exists among AEP's utilities in the Midwest and to approve a new Power Coordination Agreement among Appalachian Power, Kentucky Power and Indiana Michigan Power.

AEP also requested approval to merge AEP's Wheeling Power utility into Appalachian Power.

AEP anticipates a decision on the FERC filings by mid-2013, with implementation of corporate separation and the other items in the related filings Jan. 1, 2014. Appalachian Power and Kentucky Power will submit necessary state regulatory filings in the fourth quarter of 2012.

AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 MW 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-kV extra-high voltage transmission lines than all other U.S. transmission systems combined.

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 Co. of Oklahoma, and Southwestern Electric Power Co. (in Arkansas, Louisiana and east and north Texas). AEP's headquarters are in Columbus, Ohio.

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