COLUMBUS, Ohio, Oct. 2, 2006 – American Electric Power (NYSE: AEP), in an effort to continue moving its generation plans forward, today filed state environmental permit applications for clean-coal power plants in Ohio and West Virginia.

Separate applications were filed with the Ohio Environmental Protection Agency and the West Virginia Department of Environmental Protection for Integrated Gasification Combined Cycle, or IGCC, plants the company plans to build in Meigs County, Ohio, and Mason County, W.Va.

“We have teams working on our IGCC projects each day while we continue to pursue the necessary regulatory cost-recovery approvals from the utility commissions in each state,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “Today’s filings for environmental permits provide a visible example of the progress we are making. There is a substantial amount of activity taking place to position us to begin construction as soon as final regulatory approvals for cost recovery are in hand. For instance, site-specific engineering and design work – an intense and extremely detailed process that determines specific materials and equipment requirements and construction costs for each of the plants – is ongoing and will be completed later this year.

“It remains our intent to begin construction on the Ohio plant first, with work in West Virginia beginning about two years later, although our start dates will be determined by the completion of the regulatory approval processes in the states,” Morris said. “Once we receive final cost-recovery authority and legal challenges – if any – have been resolved, we will begin construction.”

AEP has proposed IGCC technology for use as new base-load generation in the seven-state eastern portion of its service territory and has also announced plans to build two ultra-supercritical pulverized coal power plants in its western operating area.

On Aug. 31, 2004, AEP announced its intent to scale-up IGCC technology and build approximately 1,200 megawatts of large, commercial scale IGCC generation.

The company’s AEP Ohio subsidiary filed March 18, 2005, with the Public Utilities Commission of Ohio (PUCO) for cost recovery for a 629-megawatt IGCC plant in Meigs County. On April 10, 2006, the PUCO issued an order allowing AEP Ohio to recover pre-construction costs, including the front-end engineering and design (FEED) study currently under way. During the FEED process, technology supplier GE and engineering, procurement and construction company Bechtel will determine definitive costs for the project. AEP will then provide the PUCO with definitive cost information and seek approval to recover the costs of building and operating the plant.

The company’s Appalachian Power subsidiary filed an application Jan. 12, 2006, with the Public Service Commission of West Virginia seeking authority to build a 629-megawatt IGCC plant adjacent to AEP’s Mountaineer Plant near New Haven in Mason County.

IGCC technology converts coal into a synthetic gas that moves through pollutant-removal equipment before the gas is burned in a combined-cycle gas turbine to produce electricity. The process allows for more efficient and effective reduction and removal of sulfur dioxide, nitrogen oxides, particulates and mercury from plant emissions than conventional pulverized coal technology. IGCC plants also offer the opportunity for more efficient, less costly carbon capture for disposal in deep geologic formations.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 36,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). American Electric Power, based in Columbus, Ohio, is celebrating its 100th anniversary in 2006.
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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, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness of fuel suppliers and transporters; 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; the ability to build or require generating capacity when needed at acceptable prices and terms and to recover those costs through applicable rate cases or competitive rates; the ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for new investments, transmission service and environmental compliance);resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp. and related matters); AEP´s ability to constrain its operation and maintenance costs; AEP´s ability to sell assets at acceptable prices and on other acceptable terms; the economic climate and growth in AEP´s service territory and changes in market demand and demographic patterns; inflationary and interest rate 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 of the counterparties with whom AEP has contractual arrangements, including 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; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including implementation of EPACT and membership in and integration into regional transmission structures; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP´s pension and other postretirement benefit plans; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation, and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.