COLUMBUS, Ohio, May 4, 1998 -- American Electric Power (NYSE: AEP) details steps taken to prepare for a future competitive marketplace in its 1997 annual report to shareholders. The report, which carries the theme “The Race is On!”, is being mailed to AEP shareholders this week. “As we await full competition in the electric utility industry, all companies are positioning themselves at the starting line and waiting for the flag to drop,” said Armando Pena, AEP senior vice president—finance, treasurer and chief financial officer. “This annual report lets shareholders know how our management and employees—our ‘pit crews’— are readying AEP for the race ahead.” Developments from 1997 featured in the annual report include:

• AEP’s proposed merger with Central and South West Corporation, announced in December;
• the acquisition of Yorkshire Electricity Group plc, a regional electric company in Great Britain, in a 50-50 venture with New Century Energies Inc. announced in February;
• October’s announcement of plans to form two joint venture companies with DuPont’s energy subsidiary, Conoco, to buy and manage industrial and large commercial energy facilities;
• the opening of energy trading offices in Columbus and Houston;
• the development and implementation of new technologies; and AEP’s growing presence in the international marketplace.

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.