COLUMBUS, Ohio, May 7, 2001 - American Electric Power (NYSE: AEP) has completed a $1.25 billion two-part global note issuance, the first long-term debt issue of the holding company. Previous issuances have been through AEP subsidiaries.

Proceeds from the notes will be used to pay down commercial paper reflecting the company’s financing strategy of reducing short-term debt to a target 10 percent of total capitalization.

The company had originally planned a $1 billion offering, but increased the offering because of strong investor demand in the United States and Europe.

The securities were issued in two tranches:

1. a $1 billion five-year series with a 6.125 percent coupon, 150 basis points over the five-year Treasuries
2. a $250 million two-year puttable/callable note with a 5.5 percent coupon, 150 basis points over the two-year Treasuries

The offering was rated Baa1 by Moody’s and BBB+ by Standard & Poor.

“We were delighted with the strong and broad investor interest in our inaugural parent company financing,” said Geoff Chatas, AEP’s vice president - Finance.

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it one of America’s largest generators of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume. AEP provides retail electricity to more than 7 million customers worldwide and has more than $55 billion in assets, primarily in the U.S. with holdings in select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.