ROANOKE, Va., July 23, 2007 – Rate refunds resulting from resolution of the company’s recent general rate increase have been credited to Virginia customer accounts by Appalachian Power. Customers will see the credits applied to their current-month charges on bills that begin mailing tonight.

Former customers eligible to receive refunds will be mailed checks from the company Aug. 6. The checks will be mailed to last-known addresses.

The credits are shown on bills as three separate line items: Electric Refund, Interest and Tax Refund (if applicable).  Together they reflect the difference between what customers paid when interim electric rates were implemented Oct. 2, 2006, and the final rate structure approved by the Virginia State Corporation Commission (SCC) and implemented June 14, 2007. 

The interest component was calculated at the rate of 8.25 percent compounded quarterly and applied to refund amounts between Oct. 2, 2006, and the date accounts are scheduled to be billed beginning today and ending with the completion of the entire billing cycle Aug. 20.

Customer accounts reflecting outstanding or deferred balances will have credits applied to those balances before being applied to current charges.

These refunds apply only to the base rate. They do not affect other recent rate-related increases approved by the SCC, including the December 2006 implementation of an Environmental and Reliability (E&R) surcharge and a January 2007 fuel factor adjustment.

On May 15, the SCC authorized a rate increase generating $24 million in new revenue for Appalachian. The company had sought an increase of approximately $198 million in its application filed in May 2006.

Customers may call the Appalachian Power refund hotline at 866-276-5831 if they have additional questions.        
    
Appalachian Power customers are urged to manage energy use wisely and go to the company’s Internet site ( www.appalachianpower.com) for energy-saving tips and a free home energy calculator that provides a better understanding of how to use power efficiently. The site also provides information on payment options available to customers.

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.