THERMALONOx demonstration project at AEP�s Conesville Plant suggests need for additional laboratory research

COLUMBUS, Ohio, Sept. 28, 2001 — Officials of American Electric Power said today the company has halted testing of a new emission control technology developed by Thermal Energy International Inc.

The company concluded that – based on data collected from numerous tests to date – additional laboratory research will be required before the technology will be ready for a full-scale commercial launch.

AEP had installed and tested Thermal Energy’s THERMALONOx emission control system on Unit 6 of the company’s Conesville Power Plant in Coshocton, Ohio.

Despite the promising nature of the technology, the data from the demonstration indicate the system did not appreciably reduce nitrogen oxide (NOx) emission levels from the plant�s 375-megawatt generating unit.

The system was expected to remove as much as 75 percent of the NOx emission from the exhaust gases of utility power plants and industrial boilers when used in combination with a flue-gas desulfurization system.

The demonstration at Conesville was the first full-scale application of Thermal Energy�s THERMALONOx technology on a power plant.

“We’d obviously hoped that the demonstration would prove successful and provide us with an economical and efficient alternative to existing emission control options,” said Martin L. Mearhoff, AEP�s vice president of advanced technology and renewable energy. “While we knew the outcome would be uncertain, we felt the risk was reasonable when compared to the potential benefits.”

Mearhoff said many of the design elements required for the demonstration will remain in place and will enhance plant safety and performance.

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 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.