CONSOL Energy to Purchase American Electric Power's Affiliate Mines, Deliver 34 Million Tons of Coal Under Supply Agreements

Apr 30, 2001, 01:00 ET from American Electric Power

    COLUMBUS, Ohio, April 30 /PRNewswire/ -- CONSOL Energy Inc. (NYSE:   CNX)
 and American Electric Power (NYSE:   AEP) have entered into a memorandum of
 understanding regarding the proposed sale of AEP's affiliate mines in Ohio and
 West Virginia to CONSOL Energy.
     Under the proposed agreement CONSOL Energy would purchase the stock of
 Windsor Coal Company in West Liberty, W.Va., Southern Ohio Coal Company in
 Wilkesville, Ohio, and Central Ohio Coal Company in Cumberland, Ohio.
     In addition, AEP would enter into coal supply agreements with CONSOL
 Energy to purchase approximately 34 million tons of coal from these and other
 CONSOL Energy affiliate mines through 2008.  The coal would be utilized at
 various AEP coal-fired power plants including the Muskingum River, Cardinal
 and Gen. James. M. Gavin plants.
     Federal Worker Adjustment and Retraining Notification Act, or WARN,
 notices will be given to employees at the three mines.  The notices alert them
 to the potential sale and indicate that their employment with AEP would end on
 or about June 30, 2001 when it is anticipated that the agreement with CONSOL
 would be closed.
     Employees have been aware of the possible sale since last August when the
 company announced plans to pursue a sale and retained the investment banking
 firm Rothschild Inc. to market the properties.
     As part of the proposed agreement, AEP would retain ownership of, and
 continue to manage, the area of reclaimed coal lands known as ReCreation Land.
     Definitive agreements must be negotiated by the parties and must be
 approved by the Boards of Directors of both companies following due diligence.
 
     BACKGROUND
     * Southern Ohio Coal Company is located near Wilkesville, Ohio, about
       25 miles southwest of Athens.  Southern Ohio Coal consists of two
       underground coal mines -- Meigs No. 2 and Meigs No. 31 -- a coal
       preparation plant and a general office.  The company employs
       680 workers.
     * Windsor Coal Company is located at West Liberty, W.Va., about 10 miles
       north of Wheeling.  Currently not in operation, Windsor produced coal
       for use at AEP's Cardinal generating station and for sale to customers
       outside of the AEP System, and had a staff of 225 employees.
     * Central Ohio Coal Company is located near Cumberland, Ohio, about
       30 miles southeast of Zanesville.  Currently not in operation, the mine
       produced coal for AEP's Muskingum River Plant at Beverly, Ohio and had
       147 employees.
     * ReCreation Land consists of some 35,000 acres near Zanesville that was
       surface-mined and reclaimed by Central Ohio Coal Company.  AEP has made
       the area available for public use since 1961 through cooperative
       agreements with the Ohio Department of Natural Resources.
 
     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.
 
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SOURCE American Electric Power
    COLUMBUS, Ohio, April 30 /PRNewswire/ -- CONSOL Energy Inc. (NYSE:   CNX)
 and American Electric Power (NYSE:   AEP) have entered into a memorandum of
 understanding regarding the proposed sale of AEP's affiliate mines in Ohio and
 West Virginia to CONSOL Energy.
     Under the proposed agreement CONSOL Energy would purchase the stock of
 Windsor Coal Company in West Liberty, W.Va., Southern Ohio Coal Company in
 Wilkesville, Ohio, and Central Ohio Coal Company in Cumberland, Ohio.
     In addition, AEP would enter into coal supply agreements with CONSOL
 Energy to purchase approximately 34 million tons of coal from these and other
 CONSOL Energy affiliate mines through 2008.  The coal would be utilized at
 various AEP coal-fired power plants including the Muskingum River, Cardinal
 and Gen. James. M. Gavin plants.
     Federal Worker Adjustment and Retraining Notification Act, or WARN,
 notices will be given to employees at the three mines.  The notices alert them
 to the potential sale and indicate that their employment with AEP would end on
 or about June 30, 2001 when it is anticipated that the agreement with CONSOL
 would be closed.
     Employees have been aware of the possible sale since last August when the
 company announced plans to pursue a sale and retained the investment banking
 firm Rothschild Inc. to market the properties.
     As part of the proposed agreement, AEP would retain ownership of, and
 continue to manage, the area of reclaimed coal lands known as ReCreation Land.
     Definitive agreements must be negotiated by the parties and must be
 approved by the Boards of Directors of both companies following due diligence.
 
     BACKGROUND
     * Southern Ohio Coal Company is located near Wilkesville, Ohio, about
       25 miles southwest of Athens.  Southern Ohio Coal consists of two
       underground coal mines -- Meigs No. 2 and Meigs No. 31 -- a coal
       preparation plant and a general office.  The company employs
       680 workers.
     * Windsor Coal Company is located at West Liberty, W.Va., about 10 miles
       north of Wheeling.  Currently not in operation, Windsor produced coal
       for use at AEP's Cardinal generating station and for sale to customers
       outside of the AEP System, and had a staff of 225 employees.
     * Central Ohio Coal Company is located near Cumberland, Ohio, about
       30 miles southeast of Zanesville.  Currently not in operation, the mine
       produced coal for AEP's Muskingum River Plant at Beverly, Ohio and had
       147 employees.
     * ReCreation Land consists of some 35,000 acres near Zanesville that was
       surface-mined and reclaimed by Central Ohio Coal Company.  AEP has made
       the area available for public use since 1961 through cooperative
       agreements with the Ohio Department of Natural Resources.
 
     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.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X93033072
 
 SOURCE  American Electric Power