AEP Retail Energy to Become Option 1 Texas REP

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January 31, 2011

AEP Texas Commercial & Industrial Limited Partnership has applied to amend its Texas REP certificate from an Option 2 REP to an Option 1 REP.

Option 2 REPs may only serve customers in excess of 1 MW which sign an affidavit agreeing to such service.  Option 1 REPs may serve all customers without restriction.

AEP's intention to expand its active marketing in the ERCOT retail market was first reported by Matters last November (11/2).

"Don't look for us just in Ohio ... there are other parts of our service territory where there are significant retail opportunities," said Brian Tierney, AEP CFO, in November during an Edison Electric Institute investor conference.

At that time, Tierney cited Texas, in particular, as a market that AEP is "looking at" from a competitive retail standpoint.

Tierney also said in November that AEP's retail supplier serves as a broader platform to expand to other markets "throughout the east" to capture incremental margin.

AEP Texas Commercial & Industrial Limited Partnership also indicated that it would add the trade name AEP Retail Energy to its amended Texas REP certificate.  AEP Retail Energy is the name used by AEP's Ohio competitive supplier as well.

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