THIRD-PARTY GROWTH INCREASING FOR USTI

“We are a leading provider of RATA testing services for electric utilities and certain large industrial facilities that must operate continuous emissions monitoring systems (CEMS) to measure stack gas flow velocity,” said Mike Brown, general manager of USTI.

United Sciences Testing, Inc (USTI) is a wholly owned subsidiary of American Electric Power (AEP). An AEP subsidiary since January 2002, USTI provides Relative Accuracy Test Audit (RATA) services for AEP and other utilities and USTI also leases its proprietary technological equipment to utilities who have their own test teams.

United Sciences Testing, Inc. (USTI) plays a vital role in AEP’s air quality compliance strategy and is working to expand its portfolio of external customers. This is no small accomplishment as AEP is the largest producer of electricity (and the largest consumer of coal) in the United States. “We provide flow RATA testing services to the internal fleet and a number of third party utilities. We are also actively marketing USTI’s services beyond our current client base,” stated Brown. USTI’s marketing efforts are succeeding as two major utilities have recently committed to using USTI for flow RATA testing. In addition, existing clients are increasing their reliance on USTI’s services.

“We saw great advantages in this technology before we bought it and USTI continues to validate our acquisition,” said Mark Marano, AEP senior vice president, business services and President of USTI. “If we used it strictly for internal compliance purposes, the acquisition would be justified. However, we think other utilities can benefit as we have, and our efforts to market USTI’s services externally appear to be confirming its value.”

AEP recently announced plans to market its AEP Pro Serv, Inc., subsidiary, a provider of a variety of engineering and construction management services to third parties. USTI is not part of the AEP Pro Serv organization and as such is not a part of this effort.