AEP's Ongoing Earnings Up 89 Percent for Quarter; Strong Performance by Wholesale Key Factor

Company increases earnings estimate for 2001



Apr 24, 2001, 01:00 ET from American Electric Power

    COLUMBUS, Ohio, April 24 /PRNewswire Interactive News Release/ -- American
 Electric Power (NYSE:   AEP) today announced first-quarter ongoing earnings of
 $0.68 per share, an 89 percent increase from the same quarter in 2000.
 Revenue increased 121 percent to $13.5 billion.
     The increase in ongoing earnings reflects the strong performance by the
 company's wholesale business and the impact of the return to service of the
 company's Cook Nuclear Plant.
     Results for the first quarter were:
 
                                              First quarter ended March 31
                                                2001    2000    Variance
      Revenue ($ in billions)                   13.5     6.1       7.4
      Earnings ($ in millions):
          Ongoing                              220.5   117.0     103.5
          As reported                          266.1   139.6     126.5
      EPS ($):
          Ongoing                               0.68    0.36      0.32
          As reported                           0.83    0.43      0.40
 
     "Our strategic emphasis is on the wholesale business and our wholesale
 organization continued its impressive performance," said E. Linn Draper Jr.,
 AEP's chairman, president and chief executive officer.  "The earnings
 contribution from wholesale increased 152 percent, or $0.32 per share, over
 the same quarter last year."
     AEP's wholesale business, which consists of wholesale sales in the United
 States, the generation component of domestic retail sales, worldwide trading
 and other related businesses, contributed $0.53 per share in the quarter, up
 from $0.21 in first quarter 2000.  Wholesale electric domestic trading volume
 for the quarter was 139 million megawatt-hours, a 58 percent increase from the
 first-quarter 2000 volume of 87.9 million megawatt-hours.
     Lower year-to-year costs associated with the Cook restart, included in the
 wholesale results, improved first-quarter earnings by $0.19 per share.  Cook
 Unit 2 returned to service in June and Unit 1 was restarted in late December.
     "The return of Cook boosts the bottom line in two ways," Draper said.
 "First, the costs associated with restart are behind us.  Second, Cook's 2,110
 megawatts of power -- enough to supply more than 2 million average homes --
 give us more energy to sell.  Both Cook units have performed well since they
 returned to service, and we're looking forward to having both units available
 for summer peak energy sales for the first time since 1997."
     AEP's energy delivery business, which consists of domestic electric
 transmission and distribution, contributed $0.47 per share in the quarter,
 compared with $0.48 in first quarter 2000.  Increased revenue from load growth
 was more than offset by timing differences associated with operating expenses.
     AEP's other investments, primarily the ownership of international wires
 businesses, contributed $0.05 per share for the quarter, unchanged from first
 quarter 2000.
     Among the special items accounting for the difference between as-reported
 and ongoing earnings is the sale of AEP's 500-megawatt Frontera power plant in
 Texas to TECO Power Services, a subsidiary of TECO Energy Inc. (NYSE:   TE).
 The sale contributed $0.14 per share to AEP's first-quarter as-reported
 earnings.  AEP also sold its 50 percent interest in Yorkshire Power Group, a
 retail electricity and gas supplier and electricity distributor in the United
 Kingdom, to Innogy Holdings plc.  Net proceeds of $265 million from the
 Frontera sale and $383 million from the Yorkshire sale were used to pay down
 short-term debt.
     "We are revising our earnings estimates for the year," Draper said.  "We
 still anticipate operating and maintenance expenses will be flat for the year
 and expect ongoing earnings for 2001 to be between $3.50 and $3.60 per share,
 a 10 cent increase from earlier estimates and more than 25 percent above last
 year's ongoing results."
     AEP's first-quarter earnings data is presented in a different format than
 in past years.  The company is reporting earnings contributions from separate
 business lines, which allows shareholders to better analyze the company's
 performance.
     AEP has reclassified certain settled forward energy transactions of its
 trading operation from a net to a gross basis.  The reclassification is
 intended to reflect the scope and nature of the company's energy purchases and
 sales.  As a result, $9.6 billion was reclassified from revenues to purchased
 power expense in the first quarter of 2001 and $3.1 billion in the first
 quarter of 2000.  AEP continues to report all financially net settled trading
 transactions, such as swaps, futures and unexercised options, on a net basis,
 reflecting the financial nature of these transactions.
     AEP's first-quarter conference call with analysts will be broadcast live
 over the Internet at 9:30 a.m. EDT today. The webcast is at
 http://www.videonewswire.com/AMERICAN/042401/
     For those unable to listen during the live webcast, the call will be
 archived for replay on AEP's web site, http://www.aep.com .  To access the
 replay, click on "Investor Relations." Once in "Investor Relations," go to
 "Company Updates" and click on "Conference Call Webcast."
     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 7 million customers worldwide and has more than
 $45 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.
     News releases and other information about AEP can be found on the World
 Wide Web at http://www.aep.com .
     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, the outcome of
 environmental regulation and litigation, the impact of fluctuation in
 commodity prices and 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.
 
                              American Electric Power
            Summary of Financial Results for the Periods Ended March 31,
                       in millions, except per share amounts
                   (Data based on preliminary, unaudited results)
 
                                                           3 Months Ended
                                                       2001              2000
 
     Total Revenues                                  $13,542            $6,117
 
     Expenses:
         Fuel and Purchased Power                     11,406             4,347
         Maintenance and Other Operation                 958               851
         Depreciation and Amortization                   336               320
         Taxes Other Than Income Taxes                   168               171
            Total Expenses                            12,868             5,689
 
     Operating Income                                    674               428
 
     Other Income, net                                    31                42
 
     Income Before Interest, Preferred
         Dividends and Income Taxes                      705               470
 
     Interest and Preferred Dividends                    269               253
 
     Income Before Income Taxes                          436               217
 
     Income Taxes                                        170                77
 
     Net Income                                         $266              $140
 
     Average Shares Outstanding                          322               322
 
     Earnings per Share                                $0.83             $0.43
 
     Dividends Per Share                               $0.60             $0.60
 
 
                              American Electric Power
      Major Changes in Earnings Per Share for the Period Ended March 31, 2001
                                      vs. 2000
                 (Data based on preliminary, unaudited results) (a)
 
 
                                                  2001        2000     Variance
 
     Wholesale: (b) (c)
         Gross Margin - Energy Sales              1.71        1.50        0.21
         Gross Margin - Trading and
          Marketing:
            Power                                 0.21        0.08        0.13
            Gas                                   0.11        0.02        0.09
         Cook Restart & Jurisdictional
          Settlements                            (0.06)      (0.25)       0.19
         O&M Expense                             (0.91)      (0.70)      (0.21)
         Depreciation & Amortization             (0.28)      (0.27)      (0.01)
         Taxes Other Than FIT                    (0.18)      (0.15)      (0.03)
         Other                                   (0.07)      (0.02)      (0.05)
            Sub-Total                             0.53        0.21        0.32
     Energy Delivery: (b) (d)
         Revenue                                  1.50        1.44        0.06
         O&M Expense                             (0.55)      (0.51)      (0.04)
         Depreciation & Amortization             (0.29)      (0.26)      (0.03)
         Taxes Other Than FIT                    (0.19)      (0.19)       0.00
            Sub-Total                             0.47        0.48       (0.01)
     Other Investments:
         SEEBOARD                                 0.10        0.10        0.00
         CitiPower                                0.01        0.00        0.01
         Other                                   (0.06)      (0.05)      (0.01)
            Sub-Total                             0.05        0.05        0.00
 
     Capital Costs                               (0.37)      (0.38)       0.01
 
     On-going Earnings                            0.68        0.36        0.32
 
     Special Items:
         Sale of Frontera Generation              0.14           -        0.14
         Merger - 2000 Severance Adj.             0.01           -        0.01
         Yorkshire                                0.02        0.07       (0.05)
         Other Investment Write-offs             (0.02)          -       (0.02)
 
     Reported Earnings Per Share                  0.83        0.43        0.40
 
     Footnotes:
      a)  For analysis purposes, certain financial statement amounts have
          been reclassified for this effect on earnings presentation.
 
      b)  The data presented for the Wholesale and Energy Delivery business
          segments represent on-going earnings before interest expense, on an
          after tax (35%) basis, using outstanding shares of 321.7 million and
          322.0 million for 2000 and 2001, respectively.
 
      c)  Wholesale includes wholesale sales in the U. S., the generation
          component of sales to domestic retail customers, worldwide trading,
          and other related businesses including Pro Serv, AEP Energy Services,
          CSW Energy, and LIG.
 
      d)  Energy Delivery includes the domestic electric transmission and
          distribution businesses.
 
 
                              American Electric Power
                          Summary of Selected Sales Data
                          Exclusive of Foreign Operations
                  (Data based on preliminary, unaudited results)
 
 
                                                  3 Months Ended March 31,
                                                2001       2000      Change
 
     ENERGY SUMMARY
     Retail - Domestic Electric (in
      millions of kWh):
        Residential                            14,656     13,226      10.8%
        Commercial                              9,837      9,412       4.5%
        Industrial                             14,463     15,416      -6.2%
        Miscellaneous                             807        790       2.2%
        Total Domestic Retail                  39,763     38,844       2.4%
 
     Wholesale - Domestic Electric (in
      millions of kWh):
        Trading Volume                        139,059     87,919      58.2%
        Other                                  14,298     10,176      40.5%
        Total Domestic Wholesale Electric     153,357     98,095      56.3%
 
     Wholesale - Gas (in billions of cubic
      feet)                                       319        297       7.4%
 
 
     WEATHER SUMMARY (in degree days):
     Actual - Heating                           2,009      1,714      17.2%
               - Cooling                            9         24     -62.5%
     Normal - Heating                           1,978                  1.6% *
                - Cooling                          13                -30.8%
 
     *  2001 Actual vs. Normal
 
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SOURCE American Electric Power
    COLUMBUS, Ohio, April 24 /PRNewswire Interactive News Release/ -- American
 Electric Power (NYSE:   AEP) today announced first-quarter ongoing earnings of
 $0.68 per share, an 89 percent increase from the same quarter in 2000.
 Revenue increased 121 percent to $13.5 billion.
     The increase in ongoing earnings reflects the strong performance by the
 company's wholesale business and the impact of the return to service of the
 company's Cook Nuclear Plant.
     Results for the first quarter were:
 
                                              First quarter ended March 31
                                                2001    2000    Variance
      Revenue ($ in billions)                   13.5     6.1       7.4
      Earnings ($ in millions):
          Ongoing                              220.5   117.0     103.5
          As reported                          266.1   139.6     126.5
      EPS ($):
          Ongoing                               0.68    0.36      0.32
          As reported                           0.83    0.43      0.40
 
     "Our strategic emphasis is on the wholesale business and our wholesale
 organization continued its impressive performance," said E. Linn Draper Jr.,
 AEP's chairman, president and chief executive officer.  "The earnings
 contribution from wholesale increased 152 percent, or $0.32 per share, over
 the same quarter last year."
     AEP's wholesale business, which consists of wholesale sales in the United
 States, the generation component of domestic retail sales, worldwide trading
 and other related businesses, contributed $0.53 per share in the quarter, up
 from $0.21 in first quarter 2000.  Wholesale electric domestic trading volume
 for the quarter was 139 million megawatt-hours, a 58 percent increase from the
 first-quarter 2000 volume of 87.9 million megawatt-hours.
     Lower year-to-year costs associated with the Cook restart, included in the
 wholesale results, improved first-quarter earnings by $0.19 per share.  Cook
 Unit 2 returned to service in June and Unit 1 was restarted in late December.
     "The return of Cook boosts the bottom line in two ways," Draper said.
 "First, the costs associated with restart are behind us.  Second, Cook's 2,110
 megawatts of power -- enough to supply more than 2 million average homes --
 give us more energy to sell.  Both Cook units have performed well since they
 returned to service, and we're looking forward to having both units available
 for summer peak energy sales for the first time since 1997."
     AEP's energy delivery business, which consists of domestic electric
 transmission and distribution, contributed $0.47 per share in the quarter,
 compared with $0.48 in first quarter 2000.  Increased revenue from load growth
 was more than offset by timing differences associated with operating expenses.
     AEP's other investments, primarily the ownership of international wires
 businesses, contributed $0.05 per share for the quarter, unchanged from first
 quarter 2000.
     Among the special items accounting for the difference between as-reported
 and ongoing earnings is the sale of AEP's 500-megawatt Frontera power plant in
 Texas to TECO Power Services, a subsidiary of TECO Energy Inc. (NYSE:   TE).
 The sale contributed $0.14 per share to AEP's first-quarter as-reported
 earnings.  AEP also sold its 50 percent interest in Yorkshire Power Group, a
 retail electricity and gas supplier and electricity distributor in the United
 Kingdom, to Innogy Holdings plc.  Net proceeds of $265 million from the
 Frontera sale and $383 million from the Yorkshire sale were used to pay down
 short-term debt.
     "We are revising our earnings estimates for the year," Draper said.  "We
 still anticipate operating and maintenance expenses will be flat for the year
 and expect ongoing earnings for 2001 to be between $3.50 and $3.60 per share,
 a 10 cent increase from earlier estimates and more than 25 percent above last
 year's ongoing results."
     AEP's first-quarter earnings data is presented in a different format than
 in past years.  The company is reporting earnings contributions from separate
 business lines, which allows shareholders to better analyze the company's
 performance.
     AEP has reclassified certain settled forward energy transactions of its
 trading operation from a net to a gross basis.  The reclassification is
 intended to reflect the scope and nature of the company's energy purchases and
 sales.  As a result, $9.6 billion was reclassified from revenues to purchased
 power expense in the first quarter of 2001 and $3.1 billion in the first
 quarter of 2000.  AEP continues to report all financially net settled trading
 transactions, such as swaps, futures and unexercised options, on a net basis,
 reflecting the financial nature of these transactions.
     AEP's first-quarter conference call with analysts will be broadcast live
 over the Internet at 9:30 a.m. EDT today. The webcast is at
 http://www.videonewswire.com/AMERICAN/042401/
     For those unable to listen during the live webcast, the call will be
 archived for replay on AEP's web site, http://www.aep.com .  To access the
 replay, click on "Investor Relations." Once in "Investor Relations," go to
 "Company Updates" and click on "Conference Call Webcast."
     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 7 million customers worldwide and has more than
 $45 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.
     News releases and other information about AEP can be found on the World
 Wide Web at http://www.aep.com .
     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, the outcome of
 environmental regulation and litigation, the impact of fluctuation in
 commodity prices and 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.
 
                              American Electric Power
            Summary of Financial Results for the Periods Ended March 31,
                       in millions, except per share amounts
                   (Data based on preliminary, unaudited results)
 
                                                           3 Months Ended
                                                       2001              2000
 
     Total Revenues                                  $13,542            $6,117
 
     Expenses:
         Fuel and Purchased Power                     11,406             4,347
         Maintenance and Other Operation                 958               851
         Depreciation and Amortization                   336               320
         Taxes Other Than Income Taxes                   168               171
            Total Expenses                            12,868             5,689
 
     Operating Income                                    674               428
 
     Other Income, net                                    31                42
 
     Income Before Interest, Preferred
         Dividends and Income Taxes                      705               470
 
     Interest and Preferred Dividends                    269               253
 
     Income Before Income Taxes                          436               217
 
     Income Taxes                                        170                77
 
     Net Income                                         $266              $140
 
     Average Shares Outstanding                          322               322
 
     Earnings per Share                                $0.83             $0.43
 
     Dividends Per Share                               $0.60             $0.60
 
 
                              American Electric Power
      Major Changes in Earnings Per Share for the Period Ended March 31, 2001
                                      vs. 2000
                 (Data based on preliminary, unaudited results) (a)
 
 
                                                  2001        2000     Variance
 
     Wholesale: (b) (c)
         Gross Margin - Energy Sales              1.71        1.50        0.21
         Gross Margin - Trading and
          Marketing:
            Power                                 0.21        0.08        0.13
            Gas                                   0.11        0.02        0.09
         Cook Restart & Jurisdictional
          Settlements                            (0.06)      (0.25)       0.19
         O&M Expense                             (0.91)      (0.70)      (0.21)
         Depreciation & Amortization             (0.28)      (0.27)      (0.01)
         Taxes Other Than FIT                    (0.18)      (0.15)      (0.03)
         Other                                   (0.07)      (0.02)      (0.05)
            Sub-Total                             0.53        0.21        0.32
     Energy Delivery: (b) (d)
         Revenue                                  1.50        1.44        0.06
         O&M Expense                             (0.55)      (0.51)      (0.04)
         Depreciation & Amortization             (0.29)      (0.26)      (0.03)
         Taxes Other Than FIT                    (0.19)      (0.19)       0.00
            Sub-Total                             0.47        0.48       (0.01)
     Other Investments:
         SEEBOARD                                 0.10        0.10        0.00
         CitiPower                                0.01        0.00        0.01
         Other                                   (0.06)      (0.05)      (0.01)
            Sub-Total                             0.05        0.05        0.00
 
     Capital Costs                               (0.37)      (0.38)       0.01
 
     On-going Earnings                            0.68        0.36        0.32
 
     Special Items:
         Sale of Frontera Generation              0.14           -        0.14
         Merger - 2000 Severance Adj.             0.01           -        0.01
         Yorkshire                                0.02        0.07       (0.05)
         Other Investment Write-offs             (0.02)          -       (0.02)
 
     Reported Earnings Per Share                  0.83        0.43        0.40
 
     Footnotes:
      a)  For analysis purposes, certain financial statement amounts have
          been reclassified for this effect on earnings presentation.
 
      b)  The data presented for the Wholesale and Energy Delivery business
          segments represent on-going earnings before interest expense, on an
          after tax (35%) basis, using outstanding shares of 321.7 million and
          322.0 million for 2000 and 2001, respectively.
 
      c)  Wholesale includes wholesale sales in the U. S., the generation
          component of sales to domestic retail customers, worldwide trading,
          and other related businesses including Pro Serv, AEP Energy Services,
          CSW Energy, and LIG.
 
      d)  Energy Delivery includes the domestic electric transmission and
          distribution businesses.
 
 
                              American Electric Power
                          Summary of Selected Sales Data
                          Exclusive of Foreign Operations
                  (Data based on preliminary, unaudited results)
 
 
                                                  3 Months Ended March 31,
                                                2001       2000      Change
 
     ENERGY SUMMARY
     Retail - Domestic Electric (in
      millions of kWh):
        Residential                            14,656     13,226      10.8%
        Commercial                              9,837      9,412       4.5%
        Industrial                             14,463     15,416      -6.2%
        Miscellaneous                             807        790       2.2%
        Total Domestic Retail                  39,763     38,844       2.4%
 
     Wholesale - Domestic Electric (in
      millions of kWh):
        Trading Volume                        139,059     87,919      58.2%
        Other                                  14,298     10,176      40.5%
        Total Domestic Wholesale Electric     153,357     98,095      56.3%
 
     Wholesale - Gas (in billions of cubic
      feet)                                       319        297       7.4%
 
 
     WEATHER SUMMARY (in degree days):
     Actual - Heating                           2,009      1,714      17.2%
               - Cooling                            9         24     -62.5%
     Normal - Heating                           1,978                  1.6% *
                - Cooling                          13                -30.8%
 
     *  2001 Actual vs. Normal
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X62456088
 
 SOURCE  American Electric Power