AEP completes sale of CitiPower

COLUMBUS, Ohio, Aug. 30, 2002 – American Electric Power has completed the sale of CitiPower, AEP’s retail electricity and gas supply and electricity distribution subsidiary in Australia, to Cheung Kong Infrastructure Holdings Ltd (CKI) and Hongkong Electric (HKE).

AEP announced on July 19 that it had signed an agreement to sell CitiPower.

The CitiPower transaction is valued at approximately A$1.555 billion (approximately US$855 million). Under terms of the agreement, AEP will receive net cash of A$330 million (approximately US$181 million) after CitiPower debt and other obligations have been addressed.

AEP will use the cash proceeds from the sale to reduce short-term debt.

CitiPower, headquartered in Melbourne, owns and manages the electricity distribution network that serves approximately 264,000 customers in the Melbourne central business district and inner suburbs, an area that accounts for 25 percent of the employment for the state of Victoria. CitiPower also is a national energy company in Australia, offering electricity, gas and related services through its offices in Melbourne, Sydney, Brisbane and Adelaide. AEP acquired CitiPower from Entergy in December 1998 for A$1.7 billion (US$1.1 billion at the exchange rate on the December 1998 closing date).

CKI, headquartered in Hong Kong, is a diversified infrastructure company with a focus in the development, investment and operation of infrastructure businesses in Hong Kong, Mainland China, Australia, Canada, the Philippines and other countries.

Hongkong Electric Holdings Limited (HEH) was established to serve as the holding company of the Hongkong Electric Company Limited (HEC) and the overseas investment arm the Hongkong Electric International Limited (HEI). HEC, the main operating company of the HEH Group, is responsible for the generation, transmission and distribution of power to Hong Kong island, Ap Lei Chau and Lamma Island.

American Electric Power is a multinational energy company with a balanced portfolio of energy assets. AEP, the United States’ largest electricity generator, owns and operates more than 42,000 megawatts of generating capacity in the U.S. and select international markets. AEP is a wholesale energy marketer, ranking among North America’s top providers of wholesale power and natural gas with a growing wholesale presence in European markets.

In addition to electricity generation, AEP owns and operates natural gas pipeline systems, natural gas storage, coal mines, and the fourth-largest inland barge company in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s wires. The company is based in Columbus, Ohio.

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