AEP, Duke Energy Transmission Project in Indiana Moving Forward

INDIANAPOLIS, Dec. 8, 2011 /PRNewswire/ — Pioneer Transmission, a joint venture
formed by American Electric Power and Duke Energy in 2008, will begin
engineering, permitting and siting activities in 2012 on a 66-mile, 765-kilovolt
electric transmission line in Indiana between the existing Greentown substation
(approximately 15 miles east of Kokomo) and a new substation called New Reynolds
(about 20 miles north of Lafayette).

(Logo: face="Arial">http://photos.prnewswire.com/prnh/20040414/DUKEENERGYLOGO )

Pioneer Transmission’s Greentown-New Reynolds project was designated today as
one of 17 Multi-Value Projects (MVPs) included in the Midwest ISO (MISO)
Transmission Expansion Plan. These projects will collectively enhance regional
power system reliability, improve market efficiency, enable public policy
mandates and facilitate the integration of new generation resources, including
renewable energy.

“This project is the first phase of a broader regional effort to develop a new
high-capacity, extra-high-voltage transmission system to meet evolving demand
for energy and modernize the electric transmission infrastructure,” said Pioneer
Transmission President Bob Bradish.

The estimated cost of the 66-mile Greentown-New Reynolds line is $245 million.
MISO estimates that the 17 MVPs announced today will provide economic benefits
ranging from 1.8 to three times the cost of the projects.

The actual route of the Greentown-New Reynolds line is still to be determined.
Pioneer Transmission will construct and own the 765-kilovolt (kV) New Reynolds
substation to handle the interconnection of multiple power line voltages at this
location.

“We’re committed to working closely with key stakeholders and communities as we
design the project, including transmission line routing,” said Bradish. “We’ll
also collaborate with MISO and PJM Interconnection as we plan transmission
investments in Indiana that will boost electric reliability throughout the
region.”

Greentown-New Reynolds is part of a larger, 240-mile transmission project in
Indiana originally proposed by Pioneer Transmission in 2008 that would extend
from Duke Energy’s Greentown substation and terminate at AEP’s Rockport
substation near Evansville. The total cost of the broader project is estimated
at $950 million, subject to variables including transmission line routing and
equipment costs.

Through an order issued in early 2009, the Federal Energy Regulatory Commission
granted Pioneer Transmission’s 765-kV Greentown-Rockport project a formula rate
and project incentives.

To facilitate project development, Pioneer Transmission will file a petition for
public utility status with the Indiana Utility Regulatory Commission later this
month. The second and third phases of the 240-mile Pioneer transmission line
will be evaluated by PJM and MISO during their next planning cycle beginning in
2012.

Pioneer Transmission is also working with Tennessee Valley Authority (TVA) on a
765-kV line connecting AEP’s Rockport Station (east of Evansville, Ind.) with
TVA’s Paradise Station in Drakesboro, Ky.

AEP and Duke Energy continue to pursue commercial transmission projects both
jointly and independently, per the terms of their 50-50 joint venture agreement.
Duke Energy’s interest in Pioneer is owned by the company’s Commercial
Businesses, which operate independently from its regulated Franchised Electric
and Gas unit.

More information about Pioneer Transmission LLC is available at
www.pnrtransmission.com.

About American Electric Power

American Electric Power (NYSE: AEP) is one of the largest electric utilities in
the United States, delivering electricity to 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. AEP’s transmission system directly or
indirectly serves about 10 percent of the electricity demand in the Eastern
Interconnection, the interconnected transmission system that covers 38 eastern
and central U.S. and eastern Canada, and approximately 11 percent of the
electricity demand in ERCOT, the transmission system that covers much of Texas.
AEP’s headquarters are in Columbus, Ohio. Visit AEP on the web at www.aep.com.

About Duke Energy

Duke Energy (NYSE: DUK) is one of the largest electric power holding companies
in the United States. Its regulated utility operations serve approximately 4
million customers located in five states in the Southeast and Midwest,
representing a population of approximately 12 million people. Its commercial
power and international business segments own and operate diverse power
generation assets in North America and Latin America, including a growing
portfolio of renewable energy assets and transmission projects in the United
States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on
the New York Stock Exchange under the symbol DUK. More information about the
company is available on the Internet at: www.duke-energy.com.

MEDIA CONTACTS Melissa McHenry 614-716-1120
AEP
Duke Energy Greg Efthimiou 704-382-1925
24-Hour 800-559-3853

SOURCE Duke Energy