COLUMBUS, Ohio, June 1, 2004 - American Electric Power (NYSE: AEP) said today that its subsidiary, Texas Central Co. (TCC), has received notifications from Texas Generating Co. (Texas Genco) and City Public Service of San Antonio (CPS) exercising their rights of first refusal for TCC´s 25.2 percent share of the South Texas Project (STP) nuclear plant.

AEP announced March 1 that TCC had signed an agreement to sell its share of STP to Cameco South Texas Project LP, a wholly owned U.S. subsidiary of Cameco Corp., for approximately $332.6 million. The agreement was subject to right of first refusal by STP´s co-owners.

Texas Genco, which currently owns 30.8 percent of STP, intends to acquire all of TCC´s interest, or pro-rated, if necessary, to the extent other STP owners exercise their rights of first refusal. CPS, which currently owns 28 percent of STP, has stated that it intends to exercise its right to acquire an additional 12 percent ownership in STP. If both parties are able to close on the transactions, a pro-rata allocation of TCC´s 25.2 percent interest between the two parties will bring Texas Genco´s ownership to 44 percent and CPS to 40 percent. Austin Energy, which owns 16 percent of STP, elected not to exercise its right of first refusal.

TCC will seek to complete the sale of its interest in STP to Texas Genco and CPS in accordance with the STP participation agreement. If STP is not sold to Texas Genco or CPS, TCC will seek to complete the sale of all or a portion of its interest in the plant to Cameco.

STP is a 2,500-megawatt nuclear plant located in Matagorda County, Texas, approximately 90 miles southwest of Houston. TCC´s 25.2 percent share of the plant is approximately 630 megawatts. The plant is operated by STP Nuclear Operating Company.

AEP announced plans in December 2002 to sell all of the generation assets owned by TCC to determine their market value for calculating stranded costs (the amount that the book value exceeds the market value of the assets) under Texas electric restructuring legislation. As of Dec. 31, 2001, the book value of AEP’s share of STP was approximately $1.5 billion. AEP will file with the Public Utility Commission of Texas (PUCT) to recover stranded costs associated with this asset pursuant to Texas restructuring legislation.

American Electric Power owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. 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.

These reports made by AEP and its registrant subsidiaries contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and 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, 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 corporate profile; AEP’s ability to sell assets at attractive prices and on other attractive terms; international and country-specific developments affecting foreign investments including the disposition of any current 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 on a point of 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; and changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.