COLUMBUS, Ohio, Sept. 13, 2001 - American Electric Power (NYSE: AEP) and G.A.S. Capital Inc. have formed a joint venture company, AEP Gas Power Systems, that will manufacture and market 1.2-megawatt gas turbine generators for use in co-generation, remote site, supplemental generation and backup applications.

The new venture will manufacture and market the Innovator, a 1.2-megawatt generator powered by a Lycoming Turbine, the same turbine model that has more than 50 million hours of operation in military and industrial applications.

The Innovator can operate on liquid or gas fuels in a wide range of applications for commercial or industrial businesses. The Innovator´s 1.2 megawatts is equivalent to the energy needs of a mid-range light manufacturing facility, two supermarkets or more than 1,000 single-family homes.

The Innovator is lightweight and its compact footprint allows it to be shipped in standard container units and operated in inconspicuous, environmentally friendly enclosures. It can be assembled and delivered within a month avoiding manufacturing and delivery problems. Its simple design - based on proven, reliable components - ensures that production costs are kept to a minimum. The result is a clear initial cost advantage over competing products and technologies.

American Electric Power is the largest generator of electricity in the U.S. G.A.S. Capital is best known for its core company, General Aviation Services (G.A.S.), a worldwide aviation provider and lessor of engines, turboprop, jet and transport aircraft.

"AEP´s electrical engineering and integration skills provide the needed complement to the engine procurement and generation development work of G.A.S.," said Daniel O. Dickinson, president of G.A.S. Capital Inc.

"The changing nature of the energy business requires new, more flexible sources of electric power generation that give industrial and commercial electricity customers a wider range of supply options," said Paul D. Addis, AEP´s executive vice president of Wholesale activities. "We feel the Innovator will provide customers with a reliable source of power for applications where connections to global grid-based power supplies are unavailable or impractical."

Addis also stressed that the Innovator can play an integral role as supplement or complement to existing distribution service. "The Innovator´s control system can take on electrical load in as little as 30 seconds. That means energy users can respond quickly to delivery disruptions. They can move flexibly to the Innovator as a source of co-generated power. Or, if local electric tariffs permit, they can cut electricity costs at their periods of highest demand for power, using the Innovator as a peak-shaving solution."

The Innovator is designed to meet the proposed IEEE 1547 standard for interconnections between distributed generating equipment and electric utility distribution lines. And its Direct Control System allows real-time operation as well as remote control and remote monitoring.

Using highly reliable AC generation equipment, the top-performance Lycoming turbine and a unique reduction gearbox, the Innovator meets electric power requirements in a number of challenging applications:

  • Co-generation strategies involving the Innovator not only including flexible use of diesel or natural gas, but also re-use of the thermal energy released from the Innovator as a source of process heat for industrial and manufacturing needs.

  • The Innovator is portable and ideal for remote location far from conventional sources of electricity.

  • The Innovator can be programmed to step in automatically during periods of high power usage to shave peak usage and cut overall energy costs.

  • Multiple units can be connected in series to meet growing capacity needs.

The Innovator will be on display at the Turbomachinery Symposium at the George R. Brown Convention Center in Houston, Texas on September 17-20. The system will also be on view at the World Energy Engineering Congress in Atlanta, Ga., on October 24-26 and at Power Gen 2001 at the Las Vegas Convention Center on December 11-13.

AEP Gas Power Systems, LLC, is a joint venture of American Electric Power Company Inc. and G.A.S. Capital Inc. AEP Gas Power Systems is not affiliated with a regulated utility owned by American Electric Power Company Inc. and is not regulated by a public utility commission. Customers of AEP Gas Power Systems, LLC, are in no way required to purchase electricity, gas or energy services from any other affiliate of American Electric Power.

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 America’s largest generator of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume with a growing presence in natural gas. AEP provides retail electricity to more than 7 million customers worldwide and has holdings in the U.S. and select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.

Founded in 1969, G.A.S. Capital´s other affiliates include General Aviation Services LLC, General Aviation Technologies, General Helicopters International Inc. and Jet Capital, as well as limited partnerships in aviation leasing and operations. G.A.S. Capital is based in Lake Zurich, Ill.

Pat D. Hemlepp
Director, Corporate Media Relations
American Electric Power

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