COLUMBUS, Ohio, July 24, 2001 – American Electric Power today filed documents with the Federal Energy Regulatory Commission (FERC) seeking approval for changes necessary to complete a planned restructuring of the corporation’s regulated and unregulated holdings.
“The filings represent a key component in our plan to separate our regulated and unregulated businesses by the beginning of 2002,” said E. Linn Draper Jr., AEP’s chairman, president and chief executive officer. “This separation of regulated and deregulated businesses will strengthen our wholesale organization, which is our focus for growth. The separation will foster business unit accountability, enable investors to better evaluate our performance, and also provide us with options for the future. Our decisions will be based on what is in the best interests of our shareholders at that time.”
AEP’s filings include:
o a Section 203 filing, which seeks to transfer jurisdictional facilities to accomplish the separation requirements of Texas and Ohio restructuring legislation; and
o a Section 205 filing, which seeks to amend the AEP East interconnection agreement and the AEP West operating agreement.
“Our separation plan, when combined with our continued leadership role in the development of regional transmission organizations encouraged by the FERC, supports the development of robust and open bulk power markets and meets federal and state restructuring objectives,” Draper said.
“The approach we are taking in our corporate separation assures that our customers in regulated states continue to receive low-cost, reliable service,” Draper said. “We have met with utility commissions in states where we operate, listened to their recommendations and concerns, and have attempted to address those in our filings.”
AEP announced its restructuring plan last October and filed documents with the Securities and Exchange Commission in November that outlined the plan to form two wholly owned corporations. One corporation will hold AEP’s subsidiaries whose revenues derive from competitive, usually market-based, activities. The second will hold AEP’s utility subsidiaries that are subject to regulation by at least one state utility commission or foreign utility subsidiaries subject to rates or tariffs regulations.
AEP has filed business separation plans in Ohio and Texas, as required by restructuring legislation in those states. Among other things, the plans separate all or most of the company’s generation assets in Texas and Ohio from its transmission and distribution assets in those states. AEP’s plan, outlined in November’s SEC filing and detailed in today’s FERC filing, extends the concepts included in the state business separation plans to the entire corporation, providing the company greater flexibility to make business decisions in the increasingly competitive energy marketplace.
AEP’s FERC filings will be available on the company’s web site at http://www.aep.com/.
American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity. The company is also a wholesale energy marketer and trader, ranking second in the U.S. in electricity volume with a growing presence in natural gas.