COLUMBUS, Ohio, April 1 /PRNewswire-FirstCall/ -- American Electric Power
(NYSE: AEP) today announced that it has completed the $76.2 million sale of
LIG Pipeline Co. and its subsidiaries to Crosstex Energy, L.P., through its
subsidiary, Crosstex Louisiana Energy, L.P.
The companies announced the transaction on Feb. 17.
The LIG transaction is part of AEP's divestiture of assets that don't
align with the company's long-term strategy. Proceeds from the sale will be
used to reduce debt and strengthen the balance sheet. The sale of LIG is not
expected to have a material impact on 2004 GAAP earnings.
The sale includes approximately 2,000 miles of natural gas gathering and
transmission pipelines in Louisiana and five gas processing facilities that
straddle the system.
AEP continues progress on the planned divestiture of Jefferson Island
Storage and Hub L.L.C., which was acquired with the LIG assets by AEP in 1998
but will be sold separately. Jefferson Island Storage and Hub consists of two
salt dome gas storage caverns, with approximately 9 million MMBtu of storage
capacity, and two 16-inch header pipelines.
American Electric Power owns and operates more than 42,000 megawatts of
generating capacity in the United States and select international markets and
is the largest electricity generator in the U.S. AEP is also one of the
largest electric utilities in the United States, with more than 5 million
customers linked to AEP's 11-state electricity transmission and distribution
grid. The company is based in Columbus, Ohio.
These reports made by AEP and its registrant subsidiaries contain forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Although AEP and its registrant subsidiaries believe
that their expectations are based on reasonable assumptions, any such
statements may be influenced by factors that could cause actual outcomes and
results to be materially different from those projected. Among the factors
that could cause actual results to differ materially from those in the
forward-looking statements are: electric load and customer growth; weather
conditions; available sources and costs of fuels; availability of generating
capacity and the performance of AEP's generating plants; the ability to
recover regulatory assets and stranded costs in connection with deregulation;
new legislation and government regulation including requirements for reduced
emissions of sulfur, nitrogen, carbon and other substances; resolution of
pending and future rate cases, negotiations and other regulatory decisions
(including rate or other recovery for environmental compliance); oversight
and/or investigation of the energy sector or its participants; resolution of
litigation (including pending Clean Air Act enforcement actions and disputes
arising from the bankruptcy of Enron Corp.); AEP's ability to reduce its
operation and maintenance costs; the success of disposing of investments that
no longer match AEP's corporate profile; AEP's ability to sell assets at
attractive prices and on other attractive terms; international and country-specific developments affecting foreign investments including the disposition
of any current foreign investments; the economic climate and growth in AEP's
service territory and changes in market demand and demographic patterns;
inflationary trends; AEP's ability to develop and execute on a point of view
regarding prices of electricity, natural gas, and other energy-related
commodities; changes in the creditworthiness and number of participants in the
energy trading market; changes in the financial markets, particularly those
affecting the availability of capital and AEP's ability to refinance existing
debt at attractive rates; actions of rating agencies, including changes in the
ratings of debt and preferred stock; volatility and changes in markets for
electricity, natural gas, and other energy-related commodities; changes in
utility regulation, including the establishment of a regional transmission
structure; accounting pronouncements periodically issued by accounting
standard-setting bodies; the performance of AEP's pension plan; prices for
power that AEP generates and sells at wholesale; and changes in technology and
other risks and unforeseen events, including wars, the effects of terrorism
(including increased security costs), embargoes and other catastrophic events.
SOURCE American Electric Power
/CONTACT: Pat D. Hemlepp, Director, Corporate Media Relations of American
Electric Power, +1-614-716-1620/
/Company News On-Call: http://www.prnewswire.com/comp/042050.html/
/Web site: http://www.aep.com/
CO: American Electric Power; LIG Pipeline Co.; Crosstex Energy, L.P.;
Crosstex Louisiana Energy, L.P.; Jefferson Island Storage and Hub L.L.C.
ST: Ohio, Louisiana
IN: OIL UTI
-0- Apr/01/2004 21:10 GMT
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