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AEP FILES MOTION TO DISMISS
MAJORITY OF CLAIMS IN COMPLAINTS
BY U.S. EPA, OTHER PARTIES

May 10, 2000

COLUMBUS, Ohio, May 10, 2000 – American Electric Power (NYSE: AEP) today moved to dismiss the vast majority of claims included in complaints filed against the company by the U.S. Environmental Protection Agency and several other parties. The challenged claims fall outside the five-year limitations period for bringing enforcement actions under the Clean Air Act.

The company also filed a separate motion to dismiss a complaint by several special interest groups and asked the court to require those private parties to participate in the suit filed earlier by EPA.

The complaints against AEP claim certain projects at power plants were designed to increase the plants´ generating capacity in violation of the Clean Air Act. Under the New Source Review requirements of the Clean Air Act, if a source undertakes a major modification that directly results in an emissions increase, it can trigger permitting requirements under the New Source Review program and may require the source to install additional pollution control technology.

This requirement is not applied to activities such as routine maintenance, replacement of degraded equipment or failed components, or other repairs needed for the reliable, safe and efficient operation of the power plant. AEP projects cited in the lawsuits fit this description. None resulted in an increase in generating capacity and many may have helped to lower emissions.

"AEP believes firmly that these complaints are without merit," said Janet Henry, assistant general counsel for AEP. "We have complied with both the letter and spirit of environmental laws and regulations.

"The federal rules provide an opportunity to raise certain procedural issues for early resolution by the court," Henry said. "The motions we are filing today represent the most efficient way to address the majority of the claims because they fall beyond the Clean Air Act´s five-year limitations period."

The motions, filed in U.S. District Court in Columbus, address the timeliness and proper procedure for pursuing enforcement under the Clean Air Act and affect approximately 85 percent of the claims included in the complaints. The majority of the activities cited in the complaints occurred many years ago, some as early as 1979, well outside of the five-year limitations period provided by the law.

"Long delays in pursuing claims create justifiable doubt about their original validity and substantially prejudice those who must defend against them," Henry said. "The five-year limitation period provided for Clean Air Act enforcement is an important safeguard for citizens whose conduct is regulated by these complex requirements. It requires regulators to promptly address alleged violations so that citizens have fair notice of what the law requires and claims do not languish until memories have faded or witnesses and evidence are no longer available."

EPA and the Department of Justice announced enforcement actions against AEP and six other electric utilities on Nov. 3, 1999. New York, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode Island and Vermont intervened in EPA´s case against AEP. Special interest groups filed a separate, but similar, complaint on Nov. 18, 1999.

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.

For More Information, Contact:
Pat D. Hemlepp
Manager, Media Relations
American Electric Power
614/223-1620

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