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                                                       DA 96-1148


                            Before the
                FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C.  20554



In the Matter of                             )
                                        )
Application of AEP Communications, Inc.  for           )
Determination of Exempt Telecommunications        )    File No. ETC- 96-12
Company Status under Section 34 of the Public Utility  )
Holding Company Act of 1935, as added by          )
Section 103 of the Telecommunications Act of 1996 )    


                              ORDER


     Adopted:  July 17, 1996                 Released:  July 18, 1996


By the General Counsel:


     1.   On June 3, 1996, AEP Communications, Inc. ("AEPC") filed an application with
the Commission for a determination of "exempt telecommunication company" ("ETC") status
pursuant to section 34(a)(1) of the Public Utility Holding Company Act of 1935 ("PUHCA"), as
added by section 103 of the Telecommunications Act of 1996.  AEPC's application was placed
on public notice for comment on the adequacy and accuracy of the application on June 6, 1996. 
AEP Communications Inc., Public Notice, DA No. 96-904 (OGC released June 6, 1996).  No
parties filed any comments.  As explained below, AEPC satisfies the statutory criteria to merit a
positive determination of ETC status and its application is therefore granted. 

     2.   AEPC represents that it is a wholly-owned Ohio subsidiary of American Electric
Power Company, Inc. ("AEP"), a New York  corporation and a registered public utility holding
company under PUHCA.  AEPC states that it will be engaged, directly or indirectly, through one
or more "affiliates" (as defined in PUHCA section 2(a)(11)(B)), and exclusively in the business
of providing telecommunications services, information services, other services or products
subject to the jurisdiction of the Commission, and/or products or services that are related or
incidental to the provision of such products or services within the meaning of PUHCA section
34(a)(1).

     3.   Specifically, the application reflects that AEPC will offer services to personal
communications services ("PCS") license holders for the establishment and maintenance of their
PCS networks.  These services will include location and construction of antenna facilities, as
well as maintenance and management of PCS sites for PCS license holders.  AEPC also
represents that it may also offer services for the development, design, and construction of fiber
optic systems for use in providing utility communications services and demand-side management
services to AEP's public utility companies, their affiliates and their customers.  The application
further reflects that AEPC may provide long-haul fiber capacity on a wholesale basis to non-
affiliated companies, who may then resell such capacity to third parties.  In addition, AEPC
states that it may offer mobile radio communications services to AEP's public utility companies
and affiliates, their customers and non-affiliated third parties to maintain the reliability of AEP's
system and to provide other energy services that make use of telecommunications facilities,
demand-side management programs, remote meter reading, real-time pricing, load control and
coordination, transmission of data between service vehicles and home offices, and other similar
uses.  Finally, AEPC states that it may provide energy management and other related services
which would permit AEP's customers to save on their monthly utility bills.

     4.   Based upon the representations contained in AEPC's application, we determine
that AEPC is an exempt telecommunications company as that term is defined in PUHCA section
34(a)(1), as amended.

     5.   Accordingly, IT IS ORDERED that the application of AEPC IS GRANTED.  IT
IS FURTHER ORDERED that the Securities and Exchange Commission SHALL BE
NOTIFIED of this determination.


                         FEDERAL COMMUNICATIONS COMMISSION




                         William E. Kennard
                         General Counsel