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PSO Seeks Approval of Green Initiatives

January 8, 2010

TULSA, Okla., Jan. 8, 2010 – Public Service Company of Oklahoma (PSO), a subsidiary of American Electric Power (NYSE: AEP), is asking the Oklahoma Corporation Commission (OCC) to approve plans that will provide customers options for purchasing more renewable energy.

PSO is also asking the Commission allow the company to offer incentives to encourage manufacturers of wind and solar equipment to locate in Oklahoma.

In separate filings, PSO has proposed the Commission approve the company’s proposed Green Energy Choice tariff, and Wind and Solar Manufacturer tariff.

The Green Energy Choice tariff would create a voluntary program for customers who want to sign up for renewable energy. Currently, PSO customers get approximately 12 percent of their electricity from the nearly 600 megawatts (MW) of wind power PSO has under long-term contract. However, with the Green Energy Choice tariff, customers would be allowed to sign up for additional wind power in blocks of 100 kilowatt-hours (kWh), up to 2,000 kWh per month.

“Many of our customers have expressed a desire to have more of their energy come from renewable resources,” said Kathy Champion, PSO’s manager of consumer programs. “In addition, many of our cities and businesses have also expressed an interest in having an increased amount of their electricity supplied with renewable resources. The Green Energy Choice tariff will give customers that choice by allowing them to specify their preferred number of fixed kilowatt-hours and subscribe to that level.”

Customers who sign up for additional wind energy would pay $2.85 for every 100 kWh subscribed under the Green Energy Choice tariff.

The Wind and Solar Manufacturer tariff would allow PSO to offer a three-year discount on electricity for wind or solar equipment manufacturers to expand or locate new production facilities in PSO’s service area.

“PSO’s proposed initiatives seek to capitalize on Oklahoma’s abundant wind and solar resources, as well as the state’s central location in the nation to attract manufacturers of wind and solar industry equipment,” said Janet Smith, PSO’s manager of economic development.

The Wind and Solar Manufacturer tariff would apply to businesses that are primarily engaged in the production of wind and solar equipment, including wind turbines, solar cells and various components.

As of now, there is no specific timetable for the OCC to act on PSO’s proposals, although the company is hoping for approval in the next few months.

PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving approximately 527,000 customers in eastern and southwestern Oklahoma. Based in Tulsa, PSO has 4,405 megawatts of generating capacity, and is the largest provider of wind energy in the state. News releases and other information about PSO can be found on the World Wide Web at www.PSOklahoma.com.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.

MEDIA CONTACT:
Stan Whiteford
Corporate Communications
918-599-2574

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