COLUMBUS, Ohio, Aug. 10, 2004 - American Electric Power (NYSE: AEP) late Monday provided documentation to the Federal Energy Regulatory Commission (FERC) that supports the company’s authority to continue to sell wholesale power at market-based rates.

“American Electric Power has provided FERC with information demonstrating that the company does not possess generation market power in the areas where we participate in the wholesale market,” said Michael G. Morris, AEP chairman, president and chief executive officer.

AEP filed the detailed market power analysis in response to FERC orders issued in April and July.

The information AEP filed indicates that the company passes both market screens proposed by FERC earlier this year - a pivotal supplier screen and a market share screen - in the control areas to which AEP is directly connected.

AEP also passes the screens in its East Central Area Reliability Council / PJM and Electric Reliability Council of Texas “home” control areas, based on availability of centralized energy markets. In addition, AEP provided documentation to FERC - including historical purchase and sales data - demonstrating that the company does not possess market power in its Southwest Power Pool control area.

Based on this information, the company said its market-based pricing authority should be retained.

American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation’s largest electricity generator. 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 business model; AEP´s ability to sell assets at acceptable prices and on other acceptable terms; international and country-specific developments affecting foreign investments including the disposition of any 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 a strategy based on a 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.