COLUMBUS, Ohio, April 6, 2001 - American Electric Power (NYSE: AEP) has filed a request with the Kentucky Public Service Commission for authority to install a new emission control system on Unit 2 of its Big Sandy generating plant near Louisa, Ky. The control system will reduce nitrogen oxide (NOx) emissions from the 800-megawatt unit by about 90 percent. When in operation, the controls are expected to produce an overall reduction in NOx emissions of between 6,800 and 7,600 tons each ozone season (May through September).

"We are asking the Kentucky Public Service Commission to review and approve a certificate of convenience and necessity that will allow us to proceed with the proposed construction project," said Timothy C. Mosher, AEP´s Kentucky State President.

While construction is not slated to begin until the fourth quarter, site preparation will likely begin later this summer. "This filing will help ensure that the project proceeds on schedule," Mosher explained. “Filing the application now will allow us to work with the Commission on an expedited timeframe to obtain approval." The project is scheduled for completion by May 1, 2003.

AEP plans to install a Selective Catalytic Reduction (SCR) system on Big Sandy Unit 2. The system is designed to reduce nitrogen oxides (NOx) from the generating unit´s emissions. SCR uses a chemical reaction to break down the NOx present in the exhaust gases that is released during the coal combustion process. The NOx is broken down into elemental nitrogen and water. Ammonia is used to initiate the chemical reaction.

The company will use an innovative urea-to-ammonia conversion system for the SCR´s ammonia supply. The urea-based system will be similar in design to the system that is being built at three other AEP power plants:

1. the Gen. James M. Gavin Plant at Cheshire, Ohio
2. the John E. Amos Plant (Unit 3) at St. Albans, W.Va.
3. the Mountaineer Plant at New Haven, W.Va.

Mitchell H. Thomas, Big Sandy Plant´s general manager, explained that the urea-based system employs a dry, granular or pelletized form of nitrogen that is converted to ammonia just prior to the point at which it is injected into the plant’s exhaust gases. "The system eliminates health and safety concerns associated with the long-term delivery and storage of the anhydrous ammonia used in conventional SCR systems," he said.

Thomas explained that the investment in the Big Sandy Unit 2 project is estimated at approximately $107 million. The local area is expected to benefit from the creation of approximately 400 temporary jobs during the construction period.

The project is the newest element of the company´s overall program to comply with federal requirements to reduce NOx emissions. Nitrogen oxide contributes to the formation of ground level ozone, or smog. The U.S. Environmental Protection Agency requirements cap NOx emissions at affected units during the May-through-September ozone season. Affected power suppliers in Eastern Kentucky are working toward a May 1, 2003, deadline to comply with the EPA´s guidelines.

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 9 million customers worldwide and has more than $55 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.