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AEP Sells Interest In Mexican Power Plant To InterGen, Completes Divestiture Of Foreign, Domestic Non-Utility Assets

Posted on: Wednesday, 15 February 2006, 15:00 CST

COLUMBUS, Ohio, Feb. 15 /PRNewswire-FirstCall/ -- American Electric Power has completed the sale of its 50 percent interest in the Bajio power plant in Mexico to InterGen for $29 million.

The transaction is earnings neutral, since write-downs in 2004 and 2005 had reduced the asset value of Bajio to $29 million.

"This transaction is significant because it completes the divestiture of assets, both international and domestic, that did not align with our strong domestic utility operations," said Michael G. Morris, AEP's chairman, president and chief executive officer. "In the last two years we've sold power plants in England, China and Mexico, domestic merchant plants, our domestic gas pipelines and storage, and other smaller holdings. The divestitures leave us with an improved balance sheet and a strategic focus on our core utility business."

Bajio is a 600-megawatt natural gas-fired combined cycle power plant in San Luis de la Paz, a municipality in the state of Guanajuato, approximately 160 miles from Mexico City. AEP acquired its interest in Bajio from InterGen in 2000 when the plant was under construction. Bajio began commercial operations in 2002.

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 is the nation's largest generator of electricity, owning more than 36,000 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 utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). American Electric Power, based in Columbus, Ohio, is celebrating its 100th anniversary in 2006.

First Call Analyst: FCMN Contact:

American Electric Power

CONTACT: Media, Pat D. Hemlepp, Director, Corporate Media Relations,+1-614-716-1620, or Analysts, Julie Sloat, Vice President, Investor Relations,+1-614-716-2885, both of American Electric Power

Web site: http://www.aep.com/

Company News On-Call: http://www.prnewswire.com/comp/042050.html

Source: PRNewswire-FirstCall

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