COLUMBUS, Ohio, Nov. 4, 1999 -- Plans to phase out marketing and promotional programs related to electric technologies in its regulated business unit were announced today by American Electric Power (NYSE:AEP). This will result in the reorganization of the consumer services department and the elimination of an estimated 168 jobs across AEP´s seven-state service territory by June.

AEP is providing the affected personnel a severance plan and has retained an outplacement service to assist them in finding new employment.

"We believe that these electric technologies, such as heat pumps, are beneficial to our customers," said David Crabtree, vice president-consumer services. "But, today, a wide variety of suppliers are available to meet consumers´ needs."

He went on to explain that restructuring of the electric utility industry will bring consumers choice of their supplier of electricity on a state-by-state basis during the next few years.

"In the process, a clear separation between regulated and unregulated functions is necessary," he said. "The time has come for the regulated side of our business to phase out the marketing and promotion of these programs. Any plan for those programs in the non-regulated side of the business has not yet been determined."

Crabtree said no staff reductions are planned for personnel answering customer telephone inquiries at AEP´s regional call centers in Groveport, Ohio; Ashland, Ky.; Ft. Wayne, Ind.; and Hurricane, W.Va.

"We remain committed to serving our residential customers and are continually working to upgrade our communications technologies, procedures and employee development at the call centers to provide better service," said Crabtree. "This restructuring of our marketing department is also aimed at keeping staffing at a level to provide excellent service to our commercial, industrial and small business accounts."

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.