ROANOKE, Va., July 30, 2007 – Appalachian Power discovered and corrected a programming error that understated the interest component of some customer rate refunds on bills mailed last week. The company estimates the error to range from a few cents to a few dollars in the interest portion of the refund for a small percentage of customers.

Actual refund amounts, however, were calculated correctly.

The company estimates that about ten percent of its customers received refunds with incorrect interest for the refund amounts credited to bills mailed between July 23 and July 27. Most of the affected accounts were residential customers.

The company corrected the error and applied the recalculated interest to those accounts and for credits showing on all other customer bills being mailed after July 27. It will notify affected customers individually, explaining the error and corrections. The additional credit was applied to their accounts and will be shown on their next bills in approximately one month.

Dana Waldo, Appalachian Power president and chief operating officer, said, “We apologize for any inconvenience this error may have caused to customers who have already received a refund credit.”

In a May 2007 ruling on Appalachian’s general rate case, the SCC directed the company to refund with interest the difference between interim rates put into effect October 2006 and those that would have been collected if the lower final rates had been in place.

Refunds in the form of checks using the corrected interest programming are scheduled to be mailed to eligible former customers on August 6.

Customers may call the Appalachian Power refund hotline at 866-276-5831 if they have additional questions.
           
Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is a unit of American Electric Power (NYSE: AEP), one of the largest electric utilities in the United States, with more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.