AEP subsidiaries purchase 200 megawatts of wind power

Columbus, OH, Aug. 8, 2007 — Two American Electric Power (AEP) subsidiaries have signed long-term power purchase agreements with Fowler Ridge Wind Farm LLC, an indirect subsidiary of BP Alternative Energy North America Inc., for a total of 200 megawatts (MW) of wind energy.

AEP’s Appalachian Power and Indiana Michigan Power utility units each signed a 20-year agreement to purchase 100 MW (nameplate capacity) of wind energy from the Fowler Ridge Wind Farm that is being developed in Benton County (and part of Tippecanoe County), Ind. The Fowler Ridge Wind Farm is expected to be online by the end of 2008.

Pricing terms of both agreements are confidential. The agreements are subject to approvals from the Indiana Utility Regulatory Commission, the Michigan Public Service Commission and the Public Service Commission of West Virginia.

“Although we’ve long had significant wind resources in our western generation portfolio, these two contracts represent the first commercial use of wind energy to serve the electricity demands of customers in our eastern seven-state footprint. Using wind energy to help satisfy our need for additional generation improves the fuel diversity of our eastern fleet and supports progressive state initiatives to expand renewable energy resources,” said Michael G. Morris, chairman, president and chief executive officer of American Electric Power.

AEP issued requests for proposals April 2 for up to 260 MW of wind energy for Appalachian Power and up to 100 MW of wind energy for Indiana Michigan Power. AEP anticipates entering into additional power purchase agreements for wind energy for Appalachian Power.

The power purchase agreements with Fowler Ridge Wind Farm are part of AEP’s voluntary plans to add 1,000 MW of new wind energy by 2011.

The Fowler Ridge Wind Farm will be electrically interconnected to AEP’s transmission system, and the PJM Interconnection, at AEP’s 345-kilovolt Dequine Station near West Layfayette, Ind.

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