COLUMBUS, Ohio, June 4, 2004 - American Electric Power (NYSE: AEP) subsidiary Texas Central Co. (formerly known as Central Power and Light) has signed an agreement to sell its 7.8 percent share of Oklaunion Power Station to the City of Brownsville, Texas (Brownsville Public Utilities Board), for $42.75 million after Brownsville exercised its right of first refusal for the AEP Texas Central Co. (TCC) share of Oklaunion.

AEP announced a purchase agreement with Golden Spread Electric Cooperative for the TCC share of Oklaunion Jan. 30. That purchase agreement was subject to a right-of-first-refusal provision as part of the Oklaunion participation agreement. The terms and conditions of the purchase agreement signed with the Golden Spread will remain basically the same in the new agreement signed with Brownsville. The sale to Brownsville Public Utilities Board may be subject to pending right-of-first-refusal exercises from other Oklaunion Power Station owners. The transaction is expected to close before the end of 2004.

“All parties have been aware of the right-of-first-refusal provision and the necessity that AEP follow that provision as part of the competitive bidding process,” said Tom Shockley, AEP chief operating officer. “We have a good long-term relationship with the Brownsville Public Utilities Board as a co-owner of Oklaunion, and we expect to continue that relationship. At the same time, we have had an excellent dialogue with Golden Spread, and we appreciate the professionalism they have displayed throughout this process.”

Oklaunion Power Station is a 692-megawatt coal-fired generating station located near the Oklahoma border in Vernon, Texas. Three AEP subsidiaries and two other companies jointly own the plant. In addition to the share of the plant owned by TCC, AEP Texas North Co. (formerly West Texas Utilities) owns 54.7 percent of the facility and AEP Public Service Company of Oklahoma owns 15.6 percent. Oklahoma Municipal Power Authority owns 11.7 percent of the facility and the City of Brownsville, Texas (Brownsville Public Utilities Board), currently owns 10.2 percent of the facility. When their purchase of the TCC share of Oklaunion is complete, the City of Brownsville will own 18 percent of Oklaunion. AEP Public Service of Oklahoma operates the facility.

AEP announced plans in December 2002 to sell all of the generation assets owned by TCC to determine their market value for calculating stranded costs (the amount that the book value exceeds the market value of the assets) under Texas restructuring legislation. A competitive bidding process for the assets began in June 2003. As of Dec. 31, 2001, the book value of TCC’s share of Oklaunion was approximately $20.3 million.

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 more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

This report made by AEP and certain of its subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions; available sources and costs of fuels; availability of generating capacity and the performance of AEP’s generating plants; the ability to recover regulatory assets and stranded costs in connection with deregulation; new legislation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for environmental compliance); oversight and/or investigation of the energy sector or its participants; resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP´s ability to reduce its operation and maintenance costs; the success of disposing of investments that no longer match AEP´s corporate profile; AEP´s ability to sell assets at attractive prices and on other attractive terms; international and country-specific developments affecting foreign investments including the disposition of any current foreign investments; the economic climate and growth in AEP´s service territory and changes in market demand and demographic patterns; inflationary trends; AEP´s ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of participants in the energy trading market; changes in the financial markets, particularly those affecting the availability of capital and AEP´s ability to refinance existing debt at attractive rates; actions of rating agencies, including changes in the ratings of debt and preferred stock; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including the establishment of a regional transmission structure; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP´s pension plan; prices for power that AEP generates and sells at wholesale; changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.