COLUMBUS, Ohio, April 19, 2002 - American Electric Power (NYSE: AEP) plans to use a number of houses and other structures in Cheshire, Ohio, as temporary housing for employees assigned to the nearby Gen. James M. Gavin power plant and for other plant purposes.

“When the attorneys for the Cheshire residents approached us with the option of buying the property, the agreement came together so quickly that we didn’t have an opportunity to consider uses for the property that isn’t necessary to accommodate plant operations needs,” said Bill Sigmon, AEP senior vice president - unregulated power generation. “We’ve had time the last few days to examine additional needs and it became obvious that a number of the structures can be used by our employees.

“We frequently have employees and contractors temporarily assigned to the plant as part of specific projects, so it is logical for us to use some of the houses in Cheshire as temporary employee housing,” said Sigmon. “Providing living quarters adjacent to the plant will reduce commuting time for our employees and may also help reduce costs. We also will look at the commercial or city government locations for the potential use as employee training or meeting facilities.”

Sigmon said the company would begin an informal review of the property in the coming weeks to identify structures that could meet training or temporary housing needs.

AEP announced Tuesday that it had reached an agreement in principle to acquire approximately 200 parcels of land that make up the southeastern Ohio community of Cheshire for $20 million. Cheshire has a population of 221, with approximately 90 residences and several businesses.

Some of the land may be used for a potential expansion of the barge unloading capabilities to facilitate fuel deliveries to the plant. The agreement also addresses the concerns of Gavin plant neighbors, since the footprint of the plant had increased with the installation of environmental controls that extended plant operations closer to the property line.

American Electric Power is a multinational energy company with a balanced portfolio of energy assets. AEP, the United States’ largest electricity generator, owns and operates more than 42,000 megawatts of generating capacity in the U.S. and select international markets. AEP is a leading wholesale energy marketer, ranking among North America’s top providers of wholesale power and natural gas with a growing wholesale presence in European markets. In addition to electricity generation, AEP owns and operates natural gas pipeline systems, natural gas storage, coal mines, and the fourth-largest inland barge company in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s wires. The company is based in Columbus, Ohio.