SHREVEPORT, La., June 1, 2001 - Settlement of litigation involving the Dolet Hills lignite mine near Mansfield, La., will result in a new mine operator and a fuel cost reduction for customers of Southwestern Electric Power (SWEPCO), a subsidiary of American Electric Power (NYSE: AEP), and Cleco Corp. (NYSE: CNL).

The SWEPCO mining operator - to be known as Dolet Hills Lignite Co. - will perform the mining services necessary to provide lignite fuel to the Dolet Hills Power Station. AEP will provide overall direction and support for the mining operations. The new subsidiary will acquire certain of the previous miner’s assets and is prepared to assume responsibility for the mine operations on June 1.

The Louisiana Public Service Commission has approved the fuel cost reduction, the new mine operator and other elements of the settlement.

“The Louisiana Public Service Commission’s approval was a key step in resolving the litigation,” said Charles A. Ebetino, Jr., AEP’s senior vice president, Coal Mines. “The Commission´s approval allows us to establish a fuel supply agreement that will keep the mine in operation."

The agreement includes a two percent reduction in the fuel costs related to the specific contract between the Dolet Hills mine and the Dolet Hills Power Station. The reduction will remain in effect through April 2011 and will produce a savings on customer electric bills when factored into the two companies´ overall rate structures.

SWEPCO and Cleco subsidiary Cleco Power LLC are co-owners of the 650-megawatt Dolet Hills Power Plant near Mansfield, La., about 30 miles south of Shreveport. The two companies also own or lease associated lignite fuel reserves in DeSoto Parish. (Northeast Texas Electric Cooperative and Oklahoma Municipal Power Authority also own a portion of the plant, and OMPA owns a portion of the lignite reserves.)

SWEPCO and Cleco Corp. filed suit against the previous mine operator, the Dolet Hills Mining Venture, in 1997. The companies reached an agreement in principle to settle the litigation in April 2000 and have now finalized the settlement.

Current employees previously were notified that the previous miner was in the process of selling or transferring the mining operation. “The new Dolet Hills Lignite Company anticipates that most - if not all - of the existing workforce will remain in place,” Ebetino said. He indicated that the mine currently employs approximately 135 workers.

Cleco will continue to operate the Dolet Hills Power Station. “We’re looking forward to working with AEP and continuing the safe, reliable operation of the plant,” said Mark Segura, Executive Vice President and COO of Cleco Power LLC.

Cleco Corp. is a regional energy services company headquartered in Pineville, La. It operates a nonregulated midstream energy business that develops and operates power plants and a regulated electric utility company that serves about 250,000 customers in Louisiana.

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 $45 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.