COLUMBUS, Ohio, Aug. 30, 2004 - The Virginia State Corporation Commission (SCC) today approved American Electric Power’s (NYSE: AEP) application to transfer functional control of its transmission assets in Virginia to the PJM Interconnection regional transmission organization.

The commission approved the terms of an agreement reached in late July among AEP subsidiary Appalachian Power Co., the SCC staff, the Virginia attorney general, a coalition of Virginia-based industrial customers, and PJM.

“This is a very positive milestone for our company,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “Consumers will benefit from our participation in PJM’s wholesale power markets.

“We recognize and understand the desire by Virginia regulators to protect the interests of their constituents by verifying the benefits of our participation in PJM,” Morris said. “We are pleased they have completed that process and that we can move forward.”

“I am very pleased with today’s order from the Virginia State Corporation Commission,” said Dana Waldo, president and chief operating officer of Appalachian Power. “The order allows us to proceed toward compliance with state law requiring membership in a regional transmission entity and facilitates AEP’s planned Oct. 1 integration into PJM.”

AEP will continue to retain ownership of its transmission system.

American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation’s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

This report made by AEP and certain of its subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions; available sources and costs of fuels; availability of generating capacity and the performance of AEP’s generating plants; the ability to recover regulatory assets and stranded costs in connection with deregulation; new legislation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for environmental compliance); oversight and/or investigation of the energy sector or its participants; resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP´s ability to reduce its operation and maintenance costs; the success of disposing of investments that no longer match AEP´s business model; AEP´s ability to sell assets at acceptable prices and on other acceptable terms; international and country-specific developments affecting foreign investments including the disposition of any foreign investments; the economic climate and growth in AEP´s service territory and changes in market demand and demographic patterns; inflationary trends; AEP´s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of participants in the energy trading market; changes in the financial markets, particularly those affecting the availability of capital and AEP´s ability to refinance existing debt at attractive rates; actions of rating agencies, including changes in the ratings of debt and preferred stock; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including the establishment of a regional transmission structure; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP´s pension plan; prices for power that AEP generates and sells at wholesale; changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.