INEZ, Ky., June 26, 1998 -- A revolutionary new device that pushes the limits of the laws of physics, making it possible to control the flow of electricity, is being dedicated today at American Electric Power´s (NYSE:AEP) Inez Station in eastern Kentucky.

The Unified Power Flow Controller (UPFC), an advanced solid-state transmission system control technology, was developed by AEP, Westinghouse Electric and the Electric Power Research Institute. The team began work on the project in 1995.

"As industry restructuring brings new demands to existing transmission systems, electronic controllers such as the UPFC offer a cost-effective way to increase the amount of power that can be transferred," said Karl Stahlkopf, EPRI vice president.

Bruce Renz, AEP vice president, said this is the first time that transmission operators will be able to instantaneously and continuously control the flow of alternating current power on their grids.

"The UPFC offers flexible and independent control of transmission voltage and power. This will help our industry meet the demands of future load growth and open transmission access," Renz said.

Past attempts to control power flow through the transmission network were impeded by mechanical devices that were too slow, too inflexible and not sufficiently durable. Power flow patterns are dictated by the laws of physics, not economics or contracts. It is a bit like water running down a hill, flowing freely and following the path of least resistance. The UPFC electronically alters the physical parameters that determine where and how much power flows. It can "force" a line to carry power that would naturally flow elsewhere, thereby eliminating bottlenecks and diverting power to underutilized paths.

"The UPFC is the most advanced high-power controller ever devised," said John Kessinger, Westinghouse general manager.

"Its possibilities are so enormous that it is causing utility operators to abandon much of what they´ve used as historical guidelines and embrace a new era in controlling transmission parameters. Once again, technology has provided an answer at a time when it´s needed most.

"Installation of the UPFC at the Inez Station is the first application of a device that will be marketed to power companies worldwide," Kessinger said.

Westinghouse Power Generation, headquartered in Orlando, Fla., is a market and technology leader in the global energy supply business and world leader in developing energy management power electronics technology.

EPRI, established in 1973 and based in Palo Alto, Calif., manages science and technology programs for the energy and energy services industry worldwide. EPRI´s World Wide Web address is http://www.epri.com.

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.