COLUMBUS, Ohio, May 4, 2000 -- AEP Pro ServSM, Inc., the non-regulated professional services subsidiary of American Electric Power (NYSE:AEP), has been awarded a contract by Columbia Electric Corporation for the engineering, design, construction and project management of a 500 megawatt (MW) power plant near Ceredo, W. Va.

The scope of AEP Pro Serv´s work will include the engineering, procurement and construction of the six-unit, simple-cycle, natural gas-fired facility.

The total cost of the project is estimated at $140 million. Construction is expected to begin this summer. Commercial operation of the facility is expected prior to the peak summer season in 2001. The proposed plant is expected to generate electricity for the East Central Area Reliability (ECAR) region. The Ceredo Electric Generating Station will provide clean, reliable and low-cost energy to the regional electric market under a combination of contract and market sales.

The project will be situated on a 22-acre site adjacent to a natural gas compressor station in Ceredo, that is operated by Columbia Gas Transmission. The generating station will utilize the cleanest proven technology and will employ approximately 200 construction workers and up to 10 permanent employees.

"This project is a perfect fit for our organization," said James A. Howard, vice president, major projects of AEP Pro Serv. "Columbia Electric´s Ceredo project will play an important role in the region´s ongoing growth and development. And we´re pleased that AEP Pro Serv will be a part of that process."

AEP Pro Serv, Inc., provides its clients with a full array of project management, environmental, engineering, construction, operations, technical services and maintenance expertise. In the ECAR Region, the AEP subsidiary is currently developing a three-unit, 510 MW, gas-fired facility in northwest Ohio for National Power Cooperative, Inc., a wholly-owned subsidiary of the Ohio Rural Electric Cooperatives.

The Ceredo project is the principal asset of Twelvepole Creek, LLC, a subsidiary of Columbia Electric. Currently, Columbia Electric has three operating facilities totaling 248 MW, one 550 MW facility under construction and approximately 3,000 MW of gas-fired generation under development.

Columbia Electric, a wholly-owned, nonregulated subsidiary of Columbia Energy Group (NYSE: CG) develops, owns and operates state-of-the-art, efficient electric power generating facilities.
Columbia Energy Group, based in Herndon, Va., is one of the nation´s leading energy services companies, with assets of approximately $7 billion. Its operating companies engage in virtually all phases of the natural gas business, including exploration and production, transmission, storage and distribution, as well as retail energy marketing, propane and petroleum product sales, and electric power generation. Information about Columbia Energy Group (NYSE:CG) is available on the Internet at www.columbiaenergygroup.com..

AEP, a global energy company, is one of the United States´ largest investor-owned utilities, providing energy to 3 million customers in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West Virginia. AEP has holdings in the United States, the United Kingdom, China and Australia. Wholly owned subsidiaries provide power engineering, energy consulting and energy management services around the world. The company is based in Columbus, Ohio. On Dec. 22, 1997, AEP announced a definitive merger agreement for a tax-free, stock-for-stock transaction with Central and South West Corp., a public utility holding company based in Dallas.
---

This news release contains "forward-looking statements" within the meaning of the Federal securities laws, including (1) statements concerning Columbia Electric Corporation’s or American Electric Power´s plans, objectives, expected performance and expenditures and (2) any and all underlying assumptions and other statements that are other than statements of historical fact. There can be no assurance that actual results will not differ materially due to various factors, many of which are beyond the control of Columbia Electric Corporation, including, but not limited to, competition, the timely availability of major equipment, regulatory and legislative changes, the receipt of acceptable third-party approvals, as well as changes in general economic and financial and commodity market conditions. Furthermore, historical results may not be indicative of Columbia Electric Corporation’s or American Electric Power´s future performance.