COLUMBUS, Ohio, March 9, 2005 - American Electric Power (NYSE: AEP) has repurchased 12.5 million shares of its common stock in an accelerated share repurchase transaction with Merrill Lynch. The initial price paid per share was $34.63, with the $433 million for the repurchase funded from available cash on hand.

Last week, AEP announced that its board of directors had approved a plan to repurchase up to $500 million in common stock through 2006. The company said that cash available from completed asset sales were to be used to fund the share repurchase. AEP ended 2004 with $420 million in cash and cash equivalents, and in January closed the sale of controlling interest in Houston Pipe Line Co. for a total consideration of approximately $1 billion. Proceeds from asset sales will also be used to reduce $250 million of utility debt and $550 million of debt at the parent company.

"The cash we have on hand from the asset sales and our improved balance sheet allow us to take this action," said Michael G. Morris, AEP´s chairman, president and chief executive officer. "By continuing to focus on our utility business while maintaining our financial strength we will enhance our ability to make the ongoing utility investments that are at the heart of our growth strategy."

The repurchased shares are subject to a future contingent-purchase price adjustment based on the prices actually paid by Merrill Lynch for the shares during the repurchase period and certain other provisions. The adjustment will be settled during the second quarter.

The common shares repurchased by AEP will be held as treasury stock.

American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation´s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

These reports made by AEP and its registrant subsidiaries contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and 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; available sources and costs of fuels; 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; new legislation and government regulation including requirements for reduced emissions of sulfur, nitrogen, carbon and other substances; resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for environmental compliance); oversight and/or investigation of the energy sector or its participants; resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP’s ability to reduce its operation and maintenance costs; the success of disposing of investments that no longer match AEP’s corporate profile; AEP’s ability to sell assets at attractive prices and on other attractive terms; international and country-specific developments affecting foreign investments including the disposition of any current foreign investments; the economic climate and growth in AEP’s service territory and changes in market demand and demographic patterns; inflationary trends; AEP’s ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of 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 and preferred stock; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including the establishment of a regional transmission structure; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP’s pension plan; prices for power that AEP generates and sells at wholesale; and changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.