COLUMBUS, Ohio, Jan. 11, 2001 - American Electric Power (NYSE: AEP) announced today that it has executed a definitive agreement under which AEP Energy Services Gas Holding Co., a wholly owned subsidiary of AEP, will acquire the stock of Houston Pipe Line Co. (HPL) from Enron Corp. (NYSE: ENE).

The transaction is expected to close in the second quarter 2001. The completion of the acquisition is subject to, among other things, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Terms of the transaction were not disclosed.

HPL owns, or leases, and operates one of the most extensive and flexible natural gas gathering, transportation and storage operations in Texas. HPL’s intrastate system includes more than 4,400 miles of pipe with capacity of approximately 2.4 billion cubic feet per day (Bcf/d) and the operation of the Bammel Storage Facility, one of the largest storage facilities in North America with a capacity of approximately 118 billion cubic feet and significant injection and withdrawal capacity.

“AEP is pleased to purchase Houston Pipe Line from Enron,” said Paul Addis, executive vice president for AEP. “HPL will enhance AEP’s natural gas business with its multiple connections into the production areas of Texas, its numerous interconnects with intrastate and interstate pipelines, and its position in and around Houston as a premier provider of natural gas.

“The acquisition will allow AEP to extend its strategy of linking physical asset operations with trading and marketing to provide our customers flexible and tailored energy products,” Addis said. “Adding HPL to our natural-gas asset portfolio will help us reach our goal of becoming a top-10 gas trader and marketer.” AEP’s gas volume during the third quarter of 2000, the most recent data reported, was 4 Bcf/d, placing the company 14th in volume among wholesale gas marketers in the U.S.

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it one of America’s largest generators of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume. AEP provides retail electricity to more than 9 million customers worldwide and has more than $35 billion in assets, primarily in the U.S. with holdings in select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.
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News releases and other information about AEP can be found on the World Wide Web at http://www.aep.com.
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The comments set forth above include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including (1) statements concerning the Company’s plans, objectives, expected performance and expenditures and (2) other statements that are other than statements of historical fact. These forward-looking statements reflect assumptions, and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from forward-looking statements are electric load and customer growth, abnormal weather conditions, availability of generating capacity, the ability to recover net regulatory assets and other stranded costs in connection with deregulation of generation, interest rates and other risks and unforeseen events over which the Company has no control. The reader is also directed to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. Furthermore, historical results may not be indicative of the Company’s future performance.