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AEP AND TXU AGREE TO EXPAND WEST TEXAS WIND PROJECT

 

DALLAS, TX, and COLUMBUS, OH, July 18, 2001 — The Trent Mesa Project, a wind-power generation facility under construction near Abilene, Texas, is being expanded to 150,000 kilowatts of production from 130,000 kilowatts under an agreement between TXU Corp. (NYSE: TXU), the buyer of Trent Mesa's electricity output, and American Electric Power (NYSE: AEP), the builder, owner and operator of the facility.

Previous plans at the project included this addition to increase the electric generation by 15 percent. The planned expansion adds 13 wind turbines to the 87 turbines currently being installed at Trent Mesa, located just south of Interstate 20, about 24 miles west of Abilene.

The additional 20,000 kilowatts of production capacity is enough to provide renewable energy to supply the annual equivalent electric needs of 5,000 homes of TXU customers in Texas.

The expansion will increase AEP’s investment in the Trent Mesa Project to approximately $160 million.

"TXU is the largest purchaser of renewable energy in Texas and the Southwest and a national leader in supporting wind power," said Charles Jenkins, vice president of TXU Energy. "TXU has contracted to provide 382 megawatts, more than twice the amount of renewable energy required under the Texas Electric Choice Act. Our expanded agreement with AEP shows the dedication of both companies to achieving the benefits of renewable energy and cleaner air in Texas."

"AEP is the nation's largest generator of electricity and a leader in wholesale markets," said Dwayne L. Hart, vice president of business development and strategy for AEP Energy Services, the non-regulated energy development subsidiary of AEP. "The Trent Mesa Project is an example of AEP's ability to design, build and operate generation using a variety of technologies to meet the needs of wholesale customers, in this case TXU's interest in renewable energy."

AEP expects to begin delivering energy from its Trent Mesa facility to TXU this fall. AEP estimates that its facility will be able to generate more than 590 million kilowatt-hours of electricity, providing enough power to supply the equivalent annual energy needs of about 35,000 homes of TXU customers.

Including this new wind generation at Trent Mesa, TXU has now contracted to purchase more than 1.4 billion kilowatt-hours annually of renewable energy from four wind farms in West Texas. TXU says it will have enough renewable-energy capacity from these and other agreements to serve the equivalent annual energy needs of approximately 80,000 homes.

Both TXU and AEP were recognized June 6 by the American Wind Energy Association for outstanding achievements in using and developing renewable wind energy. TXU Electric won AWEA's Utility Leadership Award "for leading the Texas wind energy boom." AEP was recognized by the association for Outstanding Achievement in Operation because of its sound development, operation and maintenance of wind power generation.

A special web site about the Trent Mesa Project is available at www.trentmesa.com.

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 America's largest generator of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume with a growing presence in natural gas. AEP provides retail electricity to more than 7 million customers worldwide and has holdings in the U.S. and select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications. Visit www.aep.com for more information about AEP.

TXU Corp. is a global leader in electric and natural gas services, electricity generation, merchant trading, energy marketing, energy delivery, telecommunications and other energy-related services. TXU is one of the largest energy companies in the world with more than $25 billion of annual revenues and $43 billion of assets. TXU is one of the largest generators of electricity in the world and sells 300 million megawatt-hours of electricity and 2.7 trillion cubic feet of natural gas annually. TXU delivers or sells energy to 11 million customers primarily in the United States, Europe and Australia. Visit www.txu.com for more information about TXU.

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