After a permitting process  that stretched over some 15  years, construction began in  2004 on the Wyoming-Jacksons  Ferry 765-kilovolt transmission  line. We hope to complete the  90-mile line in mid-2006. ties to grow our wind portfolio. We’re also testing the use of plant material and  animal waste combined with coal at some of our plants to reduce emissions. SAFETY AEP employees are continually urged not to compromise their safety, or  others’ safety, in order to get the job done. So it pains me to report that three  employees lost their lives in job-related accidents during 2004. Our hearts go out  to their loved ones. No safety program is a success if fatalities occur, and we are  reevaluating every aspect of our safety programs to find new and better ways to  protect employees and raise safety awareness. In addition, we have changed our  management incentive compensation plan so that no safety-related award will  be paid if we experience one fatality during the year, regardless of how good our  overall safety record is. TRANSITIONS The AEP Board of Directors welcomed Lionel Nowell as a new  member in 2004. Lionel, senior vice president and treasurer of PepsiCo, Inc.,  brings financial acumen and valuable experience in corporate strategy and busi- ness development to our endeavors. We’re delighted to have him on board. We’ll miss Leonard Kujawa, who is leaving the AEP Board after eight years  of service. His broad knowledge of the energy industry has been a great asset dur- ing a volatile period for our sector. We wish Len the best. Key executives retiring since publication of our last annual report include  Tom Shockley, vice chairman and chief operating officer; Henry Fayne, execu- tive vice president – Energy Delivery and former chief financial officer; Armando  Peña, senior vice president – Financial Policy and former AEP treasurer; Melinda  Ackerman, senior vice president – Human Resources; and Glenn Files, senior  vice president – Distribution. Each has left a positive mark on our company. We  are a better organization because of their contributions. A LONG-TERM COMMITMENT I want to thank all AEP stakeholders for investing in  our plans and our vision. AEP is in the business of providing electric service in a  cost-effective, environmentally responsible manner for generations to come. Our  unparalleled assets – human and otherwise – are key to attaining this goal. We  do a pretty good job at it, but we need to continue to get better. That will ensure  a secure and rewarding future for our customers, our employees, and you, our  valued shareholders. MICHAEL G. MORRIS Chairman, President and Chief Executive Officer March 2, 2005 5 2004 ANNUAL REPORT TO SHAREHOLDERS