Document:

Exhibit 4(g) - CSPCo Second Supplemental Indenture, 2/1/2003 Series B and D

    
      
        

      

    

    Exhibit
      4(g)

     

    

     

    COLUMBUS
      SOUTHERN POWER COMPANY

     

    TO

     

    BANK
      ONE, N.A.

     

    AS
      TRUSTEE.

     

    

     

    

     

    

     

    SECOND
      SUPPLEMENTAL INDENTURE

     

    DATED
      AS OF FEBRUARY 1, 2003

     

    

     

    

     

    

     

    $250,000,000

     

        6.60%
      SENIOR NOTES, SERIES B DUE 2033

     

        6.60%
      SENIOR NOTES, SERIES D DUE 2033

     

    

 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    TABLE
      OF
      CONTENTS*  

    
      
        	
                ARTICLE
                  I Additional Definitions

              	
                 
                  2

              
	 	
                SECTION
                  1.01.   Definitions

              	
                 
                  2

              
	
                ARTICLE
                  II 2013 Notes

              	
                 
                  4

              
	 	
                SECTION
                  2.01.   Establishment

              	
                 
                  4

              
	 	
                SECTION
                  2.02.   Aggregate Principal Amount

              	
                 
                  4

              
	 	
                SECTION
                  2.03.   Maturity and Interest

              	
                 
                  4

              
	 	
                SECTION
                  2.04.   Optional Redemption

              	
                 
                  5

              
	 	
                SECTION
                  2.05.   Limitation on Secured Debt.

              	
                 
                  6

              
	 	
                SECTION
                  2.06.   Global Securities and Certificated
                  Securities

              	
                 
                  6

              
	 	
                SECTION
                  2.07.   Form of Securities

              	
                 
                  8

              
	 	
                SECTION
                  2.08.   Transfer and Exchange

              	
                 
                  8 

              
	
                ARTICLE
                  III Miscellaneous Provisions

              	
                13

              
	 	
                SECTION
                  3.01.   Recitals by Company

              	
                13

              
	 	
                SECTION
                  3.02.   Ratification and Incorporation of Original
                  Indenture

              	
                13

              
	 	
                SECTION
                  3.03.   Executed in Counterparts

              	
                13

              
	 	
                SECTION
                  3.04.   Legends

              	
                13

              
	 	
                SECTION
                  3.05.   Applicability of Section 4.05 and Article
                  Ten of
                  Original Indenture

              	
                13

              

      

     

    

    

      

      
        * 
          This Table of Contents does not constitute part of the Indenture or have
          any
          bearing upon the interpretation of any of its terms and
          provisions.

        

 

      

    

    THIS
      SECOND SUPPLEMENTAL INDENTURE is made as of the 1st
      day of
      February, 2003, between COLUMBUS SOUTHERN POWER COMPANY, a corporation duly
      organized and existing under the laws of the state of Ohio (herein called the
      “Company”), having its principal office at 1 Riverside Plaza, Columbus, Ohio
      43215 and Bank One, N.A., a national banking association, duly organized and
      existing under the laws of the United States, having its principal corporate
      trust office at 1111 Polaris Parkway, Columbus, Ohio 43240, as Trustee (herein
      called the “Trustee”).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      the Company has heretofore entered into an Indenture, dated as of February
      1,
      2003 (the “Original Indenture”), with the Trustee;

     

    WHEREAS,
      the Original Indenture is incorporated herein by this reference and the Original
      Indenture, as supplemented by this Second Supplemental Indenture, is herein
      called the “Indenture”;

     

    WHEREAS,
      under the Original Indenture, a new series of unsecured notes (the “Senior
      Notes”) may at any time be established by the Board of Directors of the Company
      in accordance with the provisions of the Original Indenture and the terms of
      such series may be described by a supplemental indenture executed by the Company
      and the Trustee;

     

    WHEREAS,
      the Company proposes to create under the Indenture a series of Senior Notes
      to
      be designated the “6.60% Senior Notes, Series B due 2033” (the “Series B Notes”)
      and a series of Senior Notes to be designated the “6.60% Senior Notes, Series D
      due 2033” (the “Series D Notes”; and together with the Series B Notes the “2033
      Notes”), the form and substance of the 2033 Notes and the terms, provisions and
      conditions thereof to be set forth as provided in the Original Indenture and
      this Second Supplemental Indenture;

     

    WHEREAS,
      concurrently with the issuance of the Series B Notes, the Company proposes
      to
      create under the Indenture a series of Senior Notes to be designated the “5.50%
      Series Notes Series A, due 2013” (the “Series A Notes”) and a series of Senior
      Notes to be designated the “5.50% Senior Notes, Series C, due 2013” (the “Series
      C Notes”; and together with the Series A Notes, the “2013 Notes”), the form and
      substance of the 2013 Notes and the terms, provisions and conditions thereof
      to
      be set forth as provided in the Original Indenture and the First Supplemental
      Indenture;

     

    WHEREAS,
      additional Senior Notes of other series hereafter established, except as may
      be
      limited in the Original Indenture as at the time supplemented and modified,
      may
      be issued from time to time pursuant to the Indenture as at the time
      supplemented and modified; and

     

    WHEREAS,
      all conditions necessary to authorize the execution and delivery of this Second
      Supplemental Indenture and to make it a valid and binding obligation of the
      Company have been done or performed.

     

    NOW,
      THEREFORE, in consideration of the agreements and obligations set forth herein
      and for other good and valuable consideration, the sufficiency of which is
      hereby acknowledged, the parties hereto hereby agree as follows:

     

    ARTICLE
      I  

    Additional
      Definitions

     

    SECTION
      1.01.    Definitions

     

    The
      following defined terms used herein shall, unless the context otherwise
      requires, have the meanings specified below. Capitalized terms used herein
      for
      which no definition is provided herein shall have the meanings set forth in
      the
      Original Indenture.

     

    “Clearstream”
      means Clearstream Banking, société anonyme, or any successor securities clearing
      agency.

     

    “Distribution
      Compliance Period,” with respect to the 2033 Notes, means the period of 40
      consecutive days beginning on and including the later of (i) the day on which
      such 2033 Notes are first offered to Persons other than distributors (as defined
      in Regulation S under the Securities Act) in reliance on Regulation S and (ii)
      the Original Issue Date.

     

    “DTC”
      means The Depository Trust Company, the initial Clearing Agency.

     

    “Euroclear”
      means Euroclear Bank S.A./N.V., as operator of the Euroclear System or any
      successor securities clearing agency.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended.

     

    “Exchange
      Offer Registration Statement” shall have the meaning assigned to it in the
      Registration Rights Agreement.

     

    “Global
      Securities” means global certificates representing the 2033 Notes as described
      in Section 204.

     

    “Holder”
      means a registered holder of a 2033 Note.

     

    “Institutional
      Accredited Investor” has the meaning set forth in Section 2.04(a)
      hereof.

     

    “Columbus
      Southern Wires Exchange Offer” shall have the meaning assigned to it in the
      Registration Rights Agreement.

     

    “Columbus
      Southern Wires Notes” shall have the meaning assigned to it in the Registration
      Rights Agreement.

     

    “Original
      Issue Date” means February 14, 2003.

     

    “Owner”
      means each Person who is the beneficial owner of a Global Security as reflected
      in the records of the Depository or, if a Depository participant is not the
      Owner, then as reflected in the records of a Person maintaining an account
      with
      such Depository (directly or indirectly, in accordance with the rules of such
      Depository).

     

    “Permanent
      Regulation S Global Security” has the meaning set forth in Section
      2.04(b).

     

    “QIBs”
      means qualified institutional buyers as defined in Rule 144A.

     

    “Registered
      Exchange Offer” shall have the meaning assigned to Exchange Offer in the
      Registration Rights Agreement

     

    “Registration
      Rights Agreement” means the Registration Rights Agreement, dated as of
      February 1, 2003 among the Company and the Initial Purchasers named
      therein, relating to the registration of the 2033 Notes and the 2013 Notes
      under
      the Securities Act. 

     

    “Regulation
      S” means Regulation S under the Securities Act and any successor regulation
      thereto.

     

    “Rule
      144” means Rule 144 under the Securities Act, as such rule may be amended from
      time to time, or any similar rule or regulation hereafter adopted by the
      Securities and Exchange Commission.

     

    “Rule
      144A” means Rule 144A under the Securities Act, as such rule may be amended from
      time to time, or any similar rule or regulation hereafter adopted by the
      Securities and Exchange Commission.

     

    “Rule
      144A Global Security” means any Series A Note that is to be traded pursuant
      to Rule 144A.

     

    “Securities
      Act” means the Securities Act of 1933, as amended from time to time, or any
      successor legislation.

     

    “Securities
      Custodian” means the custodian with respect to a Global Security (as appointed
      by the Depository), or any successor Person thereto and shall initially be
      the
      Trustee.

     

    “Shelf
      Registration Statement” shall have the meaning assigned to it in the
      Registration Rights Agreement.

     

    “Special
      Interest Premium” shall have the meaning assigned to it in the Registration
      Rights Agreement.

     

    “Stated
      Maturity” means March 1, 2033.

     

    “Subsidiary”
      means any corporation or other entity of which sufficient voting stock or other
      ownership or economic interests having ordinary voting power to elect a majority
      of the board of directors (or equivalent body) are at the time directly or
      indirectly held by the Company.

     

    “Temporary
      Regulation S Global Security” has the meaning set forth in Section
      2.04(b).

     

    “Transfer
      Restricted Security” shall have the meaning assigned to Registrable Note in the
      Registration Rights Agreement.

     

    “Transmission
      and Distribution Business” has the meaning set forth in Section
      3.05(a).

     

     

    ARTICLE
      II  

    2033
      Notes

     

    SECTION
      2.01.    Establishment 
      The Series B Notes shall be designated as the Company’s “6.60% Senior Notes,
      Series B due 2033” and the Series D Notes shall be designated as the Company’s
“6.60% Senior Notes, Series D due 2033”. The Series B Notes and the Series D
      Notes shall be treated for all purposes under the Indenture as a single class
      or
      series of Senior Notes.

     

    SECTION
      2.02.    Aggregate
      Principal Amount 
      The Trustee shall authenticate and deliver (i) Series B Notes for original
      issue
      on the Original Issue Date in the aggregate principal amount of $250,000,000
      and
      (ii) Series D Notes from time to time thereafter for issue only in exchange
      for
      Series B Notes pursuant to the Exchange Offer Registration Statement in
      accordance with the Registration Rights Agreement or pursuant to the Shelf
      Registration Statement in accordance with the Registration Rights Agreement,
      in
      each case upon a Company Order for authentication and delivery thereof and
      satisfaction of Section 2.01 of the Original Indenture. The aggregate principal
      amount of the 2033 Notes shall be initially limited to $250,000,000 and shall
      be
      subject to Periodic Offerings pursuant to Article Two of the Original Indenture.
      All 2033 Notes need not be issued at the same time and such series may be
      reopened at any time, without the consent of any Holder, for issuances of
      additional 2033 Notes. Any such additional 2033 Notes will have the same
      interest rate, maturity and other terms as those initially issued. The Series
      B
      Notes shall be issued in definitive fully registered form.

     

    SECTION
      2.03.    Maturity
      and Interest 
      (i) The
      2033
      Notes shall mature on, and the date on which the principal of the 2033 Notes
      shall be payable (unless earlier redeemed) shall be, March 1,
      2033;

     

    (ii)  the
      interest rate at which the 2033 Notes shall bear interest shall be 6.60% per
      annum; provided, however, that the Special Interest Premium shall accrue on
      the
      2033 Notes under certain circumstances as provided in clause (iii) below;
      interest shall accrue from the date of authentication of the 2033 Notes; the
      Interest Payment Dates on which such interest will be payable shall be March
      1
      and September 1, and the Regular Record Date for the determination of holders
      to
      whom interest is payable on any such Interest Payment Date shall be the February
      15 or August 15 preceding the relevant Interest Payment Date; provided that
      the
      first Interest Payment Date shall be September 1, 2003 and interest payable
      on
      the Stated Maturity or any redemption date shall be paid to the Person to whom
      principal shall be paid; each payment of interest shall include interest accrued
      through the day before the Interest Payment Date;

     

    (iii)  Special
      Interest Premium shall accrue (a) on the Transfer Restricted Securities over
      and
      above the interest rate set forth herein in accordance with Section 2(e) of
      the
      Registration Rights Agreement and (b) on the 2033 Notes over and above the
      interest rate set forth herein in accordance with Section 7(d) or 7(e), as
      the
      case may be, of the Registration Rights Agreement.

     

    SECTION
      2.04.    Optional
      Redemption 
      The 2033 Notes shall be redeemable at the option of the Company, in whole at
      any
      time or in part from time to time, upon not less than thirty but not more than
      sixty days’ previous notice given by mail to the registered owners of the Notes
      at a redemption price equal to the greater of (i) 100% of the principal amount
      of the 2033 Notes being redeemed and (ii) the sum of the present values of
      the
      remaining scheduled payments of principal and interest on the 2033 Notes being
      redeemed (excluding the portion of any such interest accrued to the date of
      redemption) discounted (for purposes of determining present value) to the
      redemption date on a semi-annual basis (assuming a 360-day year consisting
      of
      twelve 30-day months) at the Treasury Rate (as defined below) plus 30 basis
      points, plus, accrued interest thereon to the date of redemption.

     

    “Treasury
      Rate” means, with respect to any redemption date, the rate per annum equal to
      the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
      assuming a price for the Comparable Treasury Issue (expressed as a percentage
      of
      its principal amount) equal to the Comparable Treasury Price for such redemption
      date.

     

    “Comparable
      Treasury Issue” means the United States Treasury security selected by an
      Independent Investment Banker as having a maturity comparable to the remaining
      term of the 2033 Notes that would be utilized, at the time of selection and
      in
      accordance with customary financial practice, in pricing new issues of corporate
      debt securities of comparable maturity to the remaining term of the 2033
      Notes.

     

    “Comparable
      Treasury Price” means, with respect to any redemption date, (i) the average of
      the bid and asked prices for the Comparable Treasury Issue (expressed in each
      case as a percentage of its principal amount) on the third Business Day
      preceding such redemption date, as set forth in the daily statistical release
      (or any successor release) published by the Federal Reserve Bank of New York
      and
      designated “Composite 3:30 p.m. Quotations for U. S. Government Securities” or
      (ii) if such release (or any successor release) is not published or does not
      contain such prices on such third Business Day, the Reference Treasury Dealer
      Quotation for such redemption date.

     

    “Independent
      Investment Banker” means one of the Reference Treasury Dealers appointed by the
      Company and reasonably acceptable to the Trustee.

     

    “Reference
      Treasury Dealer” means a primary U.S. government securities dealer selected by
      the Company and reasonably acceptable to the Trustee.

     

    “Reference
      Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer
      and any redemption date, the average, as determined by the Trustee, of the
      bid
      and asked prices for the Comparable Treasury Issue (expressed in each case
      as a
      percentage of its principal amount) quoted in writing to the Trustee by such
      Reference Treasury Dealer at or before 5:00 p.m., New York City time, on the
      third Business Day preceding such redemption date.

     

    SECTION
      2.05.    Limitation
      on Secured Debt  So
      long as any of the 2033 Notes are outstanding, the Company shall not create
      or
      suffer to be created or to exist or permit any of its Subsidiaries to create
      or
      permit or suffer to be created or to exist any additional mortgage, pledge,
      security interest, or other lien (collectively “Liens”) on any utility
      properties or tangible assets now owned or hereafter acquired by the Company
      or
      its Subsidiaries to secure any indebtedness for borrowed money (“Secured Debt”),
      without providing that such 2033 Notes will be similarly secured. Further,
      this
      restriction on Secured Debt does not apply to the Company’s existing first
      mortgage bonds that have previously been issued under its mortgage indenture
      or
      any indenture supplemental thereto; provided that this restriction will apply
      to
      future issuances thereunder (other than issuances of refunding first mortgage
      bonds). In addition, this restriction does not prevent the creation or existence
      of:

     

    
      	·       
                	
              Liens
                on property existing at the time of acquisition or construction of
                such
                property (or created within one year after completion of such acquisition
                or construction), whether by purchase, merger, construction or otherwise,
                or to secure the payment of all or any part of the purchase price
                or
                construction cost thereof, including the extension of any Liens to
                repairs, renewals, replacements, substitutions, betterments, additions,
                extensions and improvements then or thereafter made on the property
                subject thereto;

            

    

     

    
      	·       
                	
              Financing
                of the Company’s accounts receivable for electric
                service;

            

    

     

    
      	·       
                	
              Any
                extensions, renewals or replacements (or successive extensions, renewals
                or replacements), in whole or in part, of Liens permitted by the
                foregoing
                clauses; and

            

    

     

    
      	·        
               	
              The
                pledge of any bonds or other securities at any time issued under
                any of
                the Secured Debt permitted by the above
                clauses.

            

    

     

    In
      addition to the permitted issuances above, Secured Debt not otherwise so
      permitted may be issued in an amount that does not exceed 15% of Net Tangible
      Assets as defined below.

     

    “Net
      Tangible Assets” means the total of all assets (including revaluations thereof
      as a result of commercial appraisals, price level restatement or otherwise)
      appearing on the Company’s balance sheet, net of applicable reserves and
      deductions, but excluding goodwill, trade names, trademarks, patents,
      unamortized debt discount, energy trading contracts, regulatory assets, deferred
      charges and all other like intangible assets (which term shall not be construed
      to include such revaluations), less the aggregate of the Company’s current
      liabilities appearing on such balance sheet.

     

    This
      restriction also will not apply to or prevent the creation or existence of
      leases (operating or capital) made, or existing on property acquired, in the
      ordinary course of business.

     

    SECTION
      2.06.    Global
      Securities and Certificated Securities

     

    (a)  General.
      The
      Series B Notes will be resold initially only to (i) QIBs in reliance on Rule
      144A under the Securities Act (“Rule 144A”), (ii) institutional “accredited
      investors” as such term is defined in rule 501(a)(1), (2),(3) and (7) of
      Regulation D under the Securities Act (each, an “Institutional Accredited
      Investor”) and (iii) Persons other than U.S. Persons (as defined in Regulation
      S) in reliance on Regulation S under the Securities Act (“Regulation S”). Series
      B Notes may thereafter be transferred to, among others, QIBs, purchasers in
      reliance on Regulation S, and Institutional Accredited Investors in each case,
      subject to the restrictions on transfer set forth herein.

     

    (b)  Global
      Securities.

     

    (i)  Form.
      Series
      B Notes initially resold pursuant to Rule 144A shall be issued initially in
      the
      form of one or more permanent Global Securities in definitive, fully registered
      form (collectively, the “Rule 144A Global Security”) and Series B Notes
      initially resold pursuant to Regulation S and shall be issued initially in
      the
      form of one or more temporary global securities in definitive, fully registered
      form (collectively, the “Temporary Regulation S Global Security”), in each case
      without interest coupons and with the global securities legend and restricted
      securities legend set forth in Exhibit A hereto, which shall be deposited on
      behalf of the purchasers of the Series B Notes represented thereby with the
      Securities Custodian, and registered in the name of the Depository or a nominee
      of the Depository, duly executed by the Company and authenticated by the Trustee
      as provided in the Indenture. Except as set forth in this Section 2.06,
      beneficial ownership interests in the Temporary Regulation S Global Security
      (x)
      will not be exchangeable for interests in the Rule 144A Global Security, the
      permanent global security (the “Permanent Regulation S Global Security”), or any
      other security without a legend containing restrictions on transfer of such
      security prior to the expiration of the Distribution Compliance Period and
      (y)
      then may be exchanged for interests in a Rule 144A Global Security or the
      Permanent Regulation S Global Security only upon certification that beneficial
      ownership interests in such Temporary Regulation S Global Security are owned
      either by non-U.S. persons or U.S. persons who purchased such interests in
      a
      transaction that did not require registration under the Securities
      Act.

     

    The
      Rule
      144A Global Security, the Temporary Regulation S Global Security and the
      Permanent Regulation S Global Security are collectively referred to herein
      as
“Global Securities”. The aggregate principal amount of the Global Securities may
      from time to time be increased or decreased by adjustments made on the records
      of the Trustee and the Depository or its nominee as hereinafter
      provided.

     

    (ii)  Book-Entry
      Provisions.
      This
      Section shall apply only to a Global Security deposited with or on behalf of
      the
      Depository. The Company shall execute and the Trustee shall, in accordance
      with
      this Section 2.06(b)(ii), authenticate and deliver initially one or more Global
      Securities that (a) shall be registered in the name of the Depository for such
      Global Security or Global Securities or the nominee of such Depository and
      (b)
      shall be delivered by the Trustee to such Depository or pursuant to such
      Depository’s instructions or held by the Trustee as custodian for the
      Depository.

     

    Members
      of, or participants in, the Depository (“Agent Members”) shall have no rights
      under this Indenture with respect to any Global Security held on their behalf
      by
      the Depository or by the Trustee as the custodian of the Depository or under
      such Global Security, and the Company, the Trustee and any agent of the Company
      or the Trustee shall be entitled to treat the Depository as the absolute owner
      of such Global Security for all purposes whatsoever. Notwithstanding the
      foregoing, nothing herein shall prevent the Company, the Trustee or any agent
      of
      the Company or the Trustee from giving effect to any written certification,
      proxy or other authorization furnished by the Depository or impair, as between
      the Depository and its Agent Members, the operation of customary practices
      of
      such Depository governing the exercise of the rights of a holder of a beneficial
      interest in any Global Security.

     

    To
      the
      extent a notice or other communication to the beneficial owners of the 2033
      Notes is required under the Indenture, unless and until Certificated Securities
      shall have been issued to such owners, the Trustee shall give all such notices
      and communications specified herein to be given to such owners to the
      Depository, and shall have no obligations to such Owners.

     

    (c)  Certificated
      Securities.
      Series
      B Notes sold to Institutional Accredited Investors shall be issued initially
      in
      the form of a fully registered, certificated Series B Note (“Certificated
      Securities”). Except as provided in this Section 2.06, owners of beneficial
      interests in Global Securities shall not be entitled to receive physical
      delivery of Certificated Securities.

     

    Global
      Securities shall be exchangeable for Certificated Securities if (i) the
      Depository (x) notifies the Company that it is unwilling or unable to continue
      as Depository for the Global Securities or (y) shall no longer be registered
      or
      in good standing under the Exchange Act, or other applicable statute or
      regulation, and a successor Depository for the Global Securities is not
      appointed by the Company within 90 days after the Company receives such notice
      or becomes aware of such condition. Upon surrender to the Trustee of the
      typewritten certificate or certificates representing the Global Securities
      by
      the Depository, accompanied by registration instructions, the Trustee shall
      execute and authenticate the certificates in accordance with the instructions
      of
      the Depository. Neither the Security Registrar nor the Trustee shall be liable
      for any delay in delivery of such instructions and may conclusively rely on,
      and
      shall be protected in relying on, such instructions. Upon the issuance of
      Certificated Securities, the Trustee shall recognize the Holders of the
      Certificated Securities as Holders. The Certificated Securities shall be
      printed, lithographed or engraved or may be produced in any other manner as
      is
      reasonably acceptable to the Company, as evidenced by the execution thereof
      by
      the Company, and shall bear the legend set forth on Exhibit A hereto unless
      the
      Company informs the Trustee that such legend is no longer required.

     

    SECTION
      2.07.    Form
      of Securities The
      Global Securities and Certificated Securities shall be substantially in the
      form
      attached as Exhibit A thereto.

     

    SECTION
      2.08.    Transfer
      and Exchange

     

     

    (a)  General.
      The
      2033 Notes may not be transferred except in compliance with the legend contained
      in Exhibit A unless otherwise determined by the Company in accordance with
      applicable law.  No service charge will be made for any transfer or
      exchange of 2033 Notes, but payment will be required of a sum sufficient
to
      cover
      any tax or other governmental charge that may be imposed in connection
      therewith.

     

              (b)  Transfer
      and Exchange of Global Securities.

     

    (i)  If
      a
      holder of a beneficial interest in the Rule 144A Global Security wishes at
      any
      time to exchange its interest in the Rule 144A Global Security for an interest
      in the Permanent Regulation S Global Security, or to transfer its interest
      in
      the Rule 144A Global Security to a person who wishes to take delivery thereof
      in
      the form of an interest in the Permanent Regulation S Global Security, such
      holder may, subject to the rules and procedures of the Depository and to the
      requirements set forth in the following sentence, exchange or cause the exchange
      or transfer or cause the transfer of such interest for an equivalent beneficial
      interest in the Permanent Regulation S Global Security. Upon receipt by the
      Trustee, as transfer agent, of (1) instructions given in accordance with the
      Depository’s procedures from or on behalf of a holder of a beneficial interest
      in the Rule 144A Global Security, directing the Trustee, as transfer agent,
      to
      credit or cause to be credited a beneficial interest in the Permanent Regulation
      S Global Security in an amount equal to the beneficial interest in the Rule
      144A
      Global Security to be exchanged or transferred, (2) a written order given in
      accordance with the Depository’s procedures containing information regarding the
      Euroclear or Clearstream account to be credited with such increase and the
      name
      of such account, and (3) a certificate in the form of Exhibit C hereto given
      by
      the holder of such beneficial interest stating that the exchange or transfer
      of
      such interest has been made pursuant to and in accordance with Rule 903 or
      Rule
      904 of Regulation S under the Securities Act, the Trustee, as transfer agent,
      shall promptly deliver appropriate instructions to the Depository, its nominee,
      or the custodian for the Depository, as the case may be, to reduce or reflect
      on
      its records a reduction of the Rule 144A Global Security by the aggregate
      principal amount of the beneficial interest in such Rule 144A Global Security
      to
      be so exchanged or transferred from the relevant participant, and the Trustee,
      as transfer agent, shall promptly deliver appropriate instructions to the
      Depository, its nominee, or the custodian for the Depository, as the case may
      be, concurrently with such reduction, to increase or reflect on its records
      an
      increase of the principal amount of such Permanent Regulation S Global Security
      by the aggregate principal amount of the beneficial interest in such Rule 144A
      Global Security to be so exchanged or transferred, and to credit or cause to
      be
      credited to the account of the person specified in such instructions (who may
      be
      Euroclear or Clearstream or another agent member of Euroclear or Clearstream
      or
      both, as the case may be, acting for and on behalf of them) a beneficial
      interest in such Permanent Regulation S Global Security equal to the reduction
      in the principal amount of such Rule 144A Global Security.

     

    (ii)  If
      a
      holder of a beneficial interest in the Permanent Regulation S Global Security
      wishes at any time to exchange its interest in the Permanent Regulation S Global
      Security for an interest in the Rule 144A Global Security, or to transfer its
      interest in the Permanent Regulation S Global Security to a person who wishes
      to
      take delivery thereof in the form of an interest in the Rule 144A Global
      Security, such holder may, subject to the rules and procedures of Euroclear
      or
      Clearstream and the Depository, as the case may be, and to the requirements
      set
      forth in the following sentence, exchange or cause the exchange or transfer
      or
      cause the transfer of such interest for an equivalent beneficial interest in
      such Rule 144A Global Security. Upon receipt by the Trustee, as transfer agent,
      of (1) instructions given in accordance with the procedures of Euroclear or
      Clearstream and the Depository, as the case may be, from or on behalf of a
      beneficial owner of an interest in the Permanent Regulation S Global Security
      directing the Trustee, as transfer agent, to credit or cause to be credited
      a
      beneficial interest in the Rule 144A Global Security in an amount equal to
      the
      beneficial interest in the Permanent Regulation S Global Security to be
      exchanged or transferred, (2) a written order given in accordance with the
      procedures of Euroclear or Clearstream and the Depository, as the case may
      be,
      containing information regarding the account with the Depository to be credited
      with such increase and the name of such account, and (3) prior to the expiration
      of the Distribution Compliance Period, a certificate in the form of Exhibit
      C
      hereto given by the holder of such beneficial interest and stating that the
      person transferring such interest in such Permanent Regulation S Global Security
      reasonably believes that the person acquiring such interest in the Rule 144A
      Global Security is a QIB and is obtaining such beneficial interest for its
      own
      account or the account of a QIB in a transaction meeting the requirements of
      Rule 144A and any applicable securities laws of any state of the United States
      or any other jurisdiction, the Trustee, as transfer agent, shall promptly
      deliver appropriate instructions to the Depository, its nominee, or the
      custodian for the Depository, as the case may be, to reduce or reflect on its
      records a reduction of the Permanent Regulation S Global Security by the
      aggregate principal amount of the beneficial interest in such Permanent
      Regulation S Global Security to be exchanged or transferred, and the Trustee,
      as
      transfer agent, shall promptly deliver appropriate instructions to the
      Depository, its nominee, or the custodian for the Depository, as the case may
      be, concurrently with such reduction, to increase or reflect on its records
      an
      increase of the principal amount of the Rule 144A Global Security by the
      aggregate principal amount of the beneficial interest in the Permanent
      Regulation S Global Security to be so exchanged or transferred, and to credit
      or
      cause to be credited to the account of the person specified in such instructions
      a beneficial interest in the Rule 144A Global Security equal to the reduction
      in
      the principal amount of the Permanent Regulation S Global Security. After the
      expiration of the Distribution Compliance Period, the certification requirement
      set forth in clause (3) of the second sentence of this Section 2.08(b)(ii)
      will
      no longer apply to such exchanges and transfers.

     

    (iii)  Any
      beneficial interest in one of the Global Securities that is transferred to
      a
      person who takes delivery in the form of an interest in the other Global
      Securities will, upon transfer, cease to be an interest in such Global Security
      and become an interest in the other Global Securities and, accordingly, will
      thereafter be subject to all transfer restrictions and other procedures
      applicable to beneficial interests in such other Global Security Note for as
      long as it remains such an interest.

     

    (iv)  Beneficial
      interests in Temporary Regulation S Global Securities may be exchanged for
      interests in Rule 144A Global Securities or Permanent Regulation S Global
      Securities if (1) such exchange occurs in connection with a transfer of
      securities in compliance with Rule 144A, and (2) the transferor of the
      beneficial interest in the Temporary Regulation S Global Security first delivers
      to the Trustee a written certificate (in a form satisfactory to the Trustee)
      to
      the effect that the beneficial interest in the Temporary Regulation S Global
      Security is being transferred to a Person (a) who the transferor reasonably
      believes to be a QIB (b) purchasing for its own account or the account of a
      QIB
      in a transaction meeting the requirements of Rule 144A, and (c) in accordance
      with all applicable securities laws of the states of the United States and
      other
      jurisdictions.

     

    (v)  During
      the Distribution Compliance Period, beneficial ownership interests in Temporary
      Regulation S Global Securities may only be sold, pledged or transferred through
      Euroclear or Clearstream in accordance with the applicable procedures relating
      to such institutions and only (i) to the Company, (ii) so long as such security
      is eligible for resale pursuant to Rule 144A, to a Person whom the selling
      holder reasonably believes is a QIB that purchases for its own account or for
      the account of a QIB in a transaction meeting the requirements of Rule 144A,
      (iii) in an offshore transaction in accordance with Regulation S (other than
      a
      transaction resulting in an exchange for interest in a Permanent Regulation
      S
      Global Security), (iv) pursuant to an exemption from registration under the
      Securities Act provided by Rule 144 (if applicable) under the Securities Act
      or
      (v) pursuant to an effective registration statement under the Securities Act,
      in
      each case in accordance with any applicable securities laws of any state of
      the
      United States.

     

    (c)  Transfer
      and Exchange of Global Securities and Certificated Securities.

     

    (i)  In
      the
      event that a Global Security is exchanged for a Certificated Security as
      provided in Section 2.06(c), such Certificated Security may be exchanged or
      transferred for one another, subject to Section 2.05 of the Original Indenture,
      only in accordance with such procedures as are substantially consistent with
      the
      provisions of clauses (b)(i) and (ii) above (including the certification
      requirements intended to ensure that such exchanges or transfers comply with
      Rule 144, Rule 144A or Regulation S, as the case may be) and as may be from
      time
      to time reasonably adopted by the Company.

     

    (ii)  Upon
      receipt by the Trustee of a Certificated Security, duly endorsed or accompanied
      by appropriate instruments of transfer, the Trustee shall cancel such
      Certificated Security and cause, or direct the Securities Custodian to cause,
      in
      accordance with the standing instructions and procedures existing of the
      Depository and the Securities Custodian, the aggregate principal amount of
      2033
      Notes represented by the Rule 144A Global Security or Permanent Regulation
      S
      Global Security, as applicable, to be increased by the aggregate principal
      amount of the Certificated Security to be exchanged and shall credit or cause
      to
      be credited to the account of the Person specified in such instructions a
      beneficial interest in the Rule 144A Global Security or Permanent Regulation
      S
      Global Security, as applicable, equal to the principal amount of the
      Certificated Security so canceled. If no Rule 144A Global Securities or
      Permanent Regulation S Global Securities, as applicable, are then outstanding,
      the Company shall issue and the Trustee shall authenticate, upon written order
      of the Company in the form of an Officers' Certificate, a new Rule 144A Global
      Security or Permanent Regulation S Global Security, as applicable, in the
      appropriate principal amount.

     

    (d)  Certificates.
      In
      connection with any transfer described in paragraphs (b) and (c) of this Section
      2.08, the Trustee shall receive a certificate of transfer in the form attached
      as Exhibit C hereto. Additionally, upon any transfer or exchange to an
      Institutional Accredited Investor, the Company and the Trustee shall receive
      a
      certificate in the form attached as Exhibit D hereto.

     

    (e)  Transfer
      Restricted Security.
      Upon
      any sale or transfer of a Transfer Restricted Security (including any Transfer
      Restricted Security represented by a Global Security) pursuant to Rule 144
      under
      the Securities Act or an effective registration statement under the Securities
      Act, which shall be certified to the Trustee and Security Registrar upon which
      each may conclusively rely:

     

    (i)  in
      the
      case of any Transfer Restricted Security represented by a Certificated Security,
      the Security Registrar shall permit the Holder thereof to exchange such Transfer
      Restricted Security for a Certificated Security that does not bear the legend
      set forth in Exhibit A hereto and rescind any restriction on the transfer of
      such Transfer Restricted Security; and

     

    (ii)  in
      the
      case of any Transfer Restricted Security represented by a Global Security,
      such
      Transfer Restricted Security shall not be required to bear the legend set forth
      in Exhibit A hereto if all other interests in such Global Note have been or
      are
      concurrently being sold or transferred pursuant to Rule 144 under the Securities
      Act or pursuant to an effective registration statement under the Securities
      Act.

     

    (f)  Registered
      Exchange Offer.
      Notwithstanding the foregoing, upon consummation of the Registered Exchange
      Offer, the Company shall issue and, upon receipt of a Company Order in
      accordance with Section 2.05 of the Original Indenture, the Trustee shall
      authenticate Series F Notes in exchange for Series B Notes accepted for exchange
      in the Registered Exchange Offer, which Series D Notes shall not bear the
      transfer restriction legend set forth in Exhibit A hereto and shall not provide
      for Special Interest Premium (except in certain circumstances related to the
      Columbus Southern Wires Exchange Offer as set forth in Section 2.03(iii)(b)
      herein) and the Security Registrar shall rescind any restriction on the transfer
      of such Series D Notes, in each case unless the Holder of such Series B Notes
      (A) is a broker-dealer tendering Series B Notes acquired directly from the
      Company or an “affiliate” (as defined in Rule 144 under the Securities Act) of
      the Company for its own account, (B) is a Person who has an arrangement or
      understanding with any Person to participate in the “distribution” (within the
      meaning of the Securities Act) of the Series D Notes, (C) is a Person who is
      an
“affiliate” (as defined in Rule 144 under the Securities Act) of the Company or
      (D) will not be acquiring the Series D Notes in the ordinary course of such
      Holder's business. The Company shall identify to the Trustee such Holders in
      a
      written certification signed by an Officer of the Company and, absent
      certification from the Company to such effect, the Trustee shall assume that
      there are no such Holders.

     

    (g)  Ohio
      Wires Exchange Offer.
      Notwithstanding the foregoing, upon consummation of the Columbus Southern Wires
      Exchange Offer, Holders of the 2033 Notes shall be permitted to exchange such
      2033 Notes for Columbus Southern Wires Notes as set forth in Section 7 of the
      Registration Rights Agreement and in a manner mutually acceptable to the Trustee
      and the Company.

     

    ARTICLE
      III  

     

    Miscellaneous
      Provisions

     

    SECTION
      3.01.    Recitals
      by Company
      The
      recitals in this Second Supplemental Indenture are made by the Company only
      and
      not by the Trustee, and all of the provisions contained in the Original
      Indenture in respect of the rights, privileges, immunities, powers and duties
      of
      the Trustee shall be applicable in respect of 2033 Notes and of this Second
      Supplemental Indenture as fully and with like effect as if set forth herein
      in
      full.

     

    SECTION
      3.02.    Ratification
      and Incorporation of Original Indenture 
      As
      supplemented hereby, the Original Indenture is in all respects ratified and
      confirmed, and the Original Indenture and this Second Supplemental Indenture
      shall be read, taken and construed as one and the same instrument.

     

    SECTION
      3.03.    Executed
      in Counterparts
      This
      Second Supplemental Indenture may be simultaneously executed in several
      counterparts, each of which shall be deemed to be an original, and such
      counterparts shall together constitute but one and the same
      instrument.

     

    SECTION
      3.04.    Legends
      Except
      as determined by the Company in accordance with applicable law, each 2033 Note
      shall bear the applicable legends relating to restrictions on transfer pursuant
      to the securities laws in substantially the form set forth on Exhibit A
      hereto.

     

    SECTION
      3.05.    Applicability
      of Section 4.05 and Article Ten of Original Indenture

     

    (a)  As
      long
      as the 2033 Notes are outstanding, Section 4.05 and Article Ten of the Original
      Indenture shall be applicable thereto; provided, however, that the transfer
      of
      all or substantially all of the Company’s transmission and distribution assets
      (“Transmission and Distribution Business”) (whether or not the Transmission and
      Distribution Business constitutes “substantially all” of the Company’s total
      assets) to Columbus Southern Wires LLC (“Columbus Southern Wires”) shall not be
      subject to Section 4.05 and Article Ten of the Original Indenture.

     

    (b)  To
      the
      extent the Transmission and Distribution Business is transferred to Columbus
      Southern Wires, holders of 2033 Notes shall be given the option to either (i)
      retain their 2033 Notes or (ii) exchange their 2033 Notes for Columbus Southern
      Wires Notes pursuant to the Columbus Southern Wires Exchange Offer.

    

 

    IN
      WITNESS WHEREOF, each party hereto has caused this instrument to be signed
      in
      its name and behalf by its duly authorized signatories, all as of the day and
      year first above written.

     

     

    COLUMBUS
      SOUTHERN POWER COMPANY

     

    By_/s/
      G. S. Chatas______

    Assistant
      Treasurer

         
      Attest:

     

    By_/s/
      T. G. Berkemeyer

               
      Assistant Secretary

     

     

    BANK
      ONE,
      N. A.,

                                                                           
      as Trustee

     

     

                                              
      By_/s/ Jeffery L. Eubank__

                                                                                   Vice
      President

     

    Attest:

     

    By_/s/
      David B. Knox__

               
      Trust Officer

    

 

    EXHIBIT
      A

     

    FORM
      OF
      SERIES [B/D] NOTE

     

    [Rule
      144A Global Security]

    [Regulation
      S Global Security]

    [Certificated
      Security]

     

    [FORM
      OF
      FACE OF INITIAL SECURITY]

     

    [Global
      Securities Legend]

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY
      AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
      USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
      REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    TRANSFERS
      OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
      PART,
      TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND
      TRANSFERS OR PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
      MADE
      IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
      ON
      THE REVERSE HEREOF.

     

    [FOR
      REGULATION S GLOBAL NOTE ONLY] UNTIL 40 DAYS AFTER THE COMMENCEMENT OF THE
      OFFERING, AN OFFER OR SALE OF NOTES WITHIN THE UNITED STATES BY A DEALER (AS
      DEFINED IN THE U.S. SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS
      OF
      THE U.S. SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN
      ACCORDANCE WITH RULE 144A THEREUNDER.

     

    [Restricted
      Securities Legend]

     

    THIS
      SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES
      FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED
      OR
      OTHERWISE TRANSFERRED OTHER THAN (A)(1) TO THE COMPANY, (2) IN A TRANSACTION
      ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
      SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT
      TO
      RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
      RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
      INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER
      TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (4) OUTSIDE THE UNITED STATES
      IN A TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES
      ACT, (5) IN ACCORDANCE WITH ANOTHER APPLICABLE EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL
      ACCEPTABLE TO THE COMPANY) OR (6) PURSUANT TO A REGISTRATION STATEMENT WHICH
      HAS
      BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT AND (B) IN EACH CASE IN
      ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF EACH STATE OF THE UNITED
      STATES. AN INSTITUTIONAL ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT
      WILL FURNISH TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER
      INFORMATION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT ANY TRANSFER BY
      IT OF
      THIS SECURITY COMPLIES WITH THE FOREGOING RESTRICTIONS. THE HOLDER HEREOF,
      BY
      PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY
      THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
      OR (2) AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
      501(A)(1), (2),(3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS HOLDING THIS
      SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (3) A NON-U.S.
      PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
      SECURITIES ACT.

     

    [Temporary
      Regulation S Global Security Legend]

     

    EXCEPT
      AS
      SET FORTH BELOW, BENEFICIAL OWNERSHIP INTEREST IN THIS TEMPORARY REGULATION
      S
      GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT
      REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST
      IN
      THE SECURITIES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING
      RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION
      COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(d)(3) OF REGULATION S UNDER
      THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY
      SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER
      BY
      NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION
      THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING SUCH 40-DAY
      DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTEREST IN THIS TEMPORARY
      REGULATION S GLOBAL SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH
      EUROCLEAR BANK S.A./N.A., AS OPERATOR OF THE EUROCLEAR SYSTEM OR CLEARSTREAM
      BANKING, SOCIÉTÉ ANONYME AND ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES
      TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
      BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
      MEETING THE REQUIREMENTS OF RULE 144A , (III) OUTSIDE THE UNITED STATES IN
      A
      TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, OR (IV)
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
      EACH OF CASE (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
      LAWS
      OF ANY STATE OF THE UNITED STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY
      REGULATION S GLOBAL SECURITY WILL NOTIFY ANY PURCHASER OF THIS SECURITY OF
      THE
      RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

     

    BENEFICIAL
      INTERESTS IN THIS TEMPORARY REGULATIONS S GLOBAL SECURITY MAY BE EXCHANGED
      FOR
      INTEREST IN A RULE 144A GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN
      CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH RULE 144A, AND (2)
      THE TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE
      A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT
      THAT THE REGULATION S GLOBAL SECURITY BEING TRANSFERRED TO A PERSON (A) WHO
      THE
      TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WHEN THE
      MEANING OF RULE 144A (B) PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
      QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF
      RULE
      144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES
      OF
      THE UNITED STATES AND OTHER JURISDICTIONS.

     

    BENEFICIAL
      INTEREST IN A RULE 144A GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON WHO
      TAKES
      DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER
      BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD,
      ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE
      (IN
      THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT IF SUCH TRANSFER
      IS
      BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S OR RULE 144 (IF
      AVAILABLE) AND THAT, IF SUCH TRANSFER OCCURS PRIOR TO THE EXPIRATION OF THE
      40-DAY DISTRIBUTION COMPLIANCE PERIOD, THE INTEREST TRANSFERRED WILL BE HELD
      IMMEDIATELY THEREAFTER THROUGH EUROCLEAR BANK S.A./N.A. OR CLEARSTREAM BANKING
      SOCIÉTÉ ANONYME.

     

    [Certificated
      Securities Legend]

     

    IN
      CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
      TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT
      MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
      RESTRICTIONS.

    

     

    COLUMBUS
      SOUTHERN POWER COMPANY

    6.60%
      Senior Notes,

    Series
      [B/D] due

    2033

     

    CUSIP:
      [199575 AS0/144A][199575 AB8/Reg S]              Original
      Issue Date: February 14, 2003

     

    Stated
      Maturity: March 1, 2033                           Interest
      Rate: 6.60%

     

    Principal
      Amount: $250,000,000
      (or such other amount as is indicated on Schedule A)

     

    Redeemable:  Yes X  No

    In
      Whole:              
       Yes X  No

    In
      Part:                   
      Yes X  No

     

    COLUMBUS
      SOUTHERN POWER COMPANY, a corporation duly organized and existing under the
      laws
      of the State of Ohio (herein referred to as the “Company”, which term includes
      any successor corporation under the Indenture hereinafter referred to), for
      value received, hereby promises to pay to [________] or registered assigns,
      the
      principal sum of _____ DOLLARS ($_____) [or such other amount as is indicated
      on
      Schedule A hereto] on the Stated Maturity specified above (or upon earlier
      redemption); and to pay interest on said Principal Amount from the Original
      Issue Date specified above or from the most recent interest payment date (each
      such date, an “Interest Payment Date”) to which interest has been paid or duly
      provided for, semi-annually in arrears on March 1 and September 1 in each year,
      commencing on September 1, 2003, at the Interest Rate per annum specified above,
      until the Principal Amount shall have been paid or duly provided for. Interest
      shall be computed on the basis of a 360-day year of twelve 30-day
      months.

     

    The
      interest so payable, and punctually paid or duly provided for, on any Interest
      Payment Date, as provided in the Indenture, as hereinafter defined, shall be
      paid to the Person in whose name this Note (or one or more Predecessor
      Securities) shall have been registered at the close of business on the Regular
      Record Date with respect to such Interest Payment Date, which shall be the
      February 15 or August 15 (whether or not a Business Day), as the case may be,
      immediately preceding such Interest Payment Date, provided that interest payable
      on the Stated Maturity or any redemption date shall be paid to the Person to
      whom principal is paid. Any such interest not so punctually paid or duly
      provided for shall forthwith cease to be payable to the Holder on such Regular
      Record Date and shall be paid as provided in said Indenture.

     

    If
      any
      Interest Payment Date, any redemption date or Stated Maturity is not a Business
      Day, then payment of the amounts due on this Note on such date will be made
      on
      the next succeeding Business Day, and no interest shall accrue on such amounts
      for the period from and after such Interest Payment Date, redemption date or
      Stated Maturity, as the case may be, except that, if such Business Day is in
      the
      next succeeding calendar year, such payment shall be made on the immediately
      preceding Business Day, with the same force and effect as if made on such date.
      The principal of (and premium, if any) and the interest on this Note shall
      be
      payable at the office or agency of the Company maintained for that purpose
      in
      the Borough of Manhattan, the City of New York, New York, in any coin or
      currency of the United States of America which at the time of payment is legal
      tender for payment of public and private debts; provided, however, that payment
      of interest (other than interest payable on Stated Maturity or any redemption
      date) may be made at the option of the Company by check mailed to the registered
      holder at such address as shall appear in the Security Register.

     

    This
      Note
      is one of a duly authorized series of Notes of the Company (herein sometimes
      referred to as the “Notes”), specified in the Indenture (defined below), all
      issued or to be issued in one or more series under and pursuant to an Indenture
      dated as of February 1, 2003 duly executed and delivered between the Company
      and
      Bank One, N. A., a corporation organized and existing under the laws of the
      United States, as Trustee (herein referred to as the “Trustee”) (such Indenture,
      as originally executed and delivered and as thereafter supplemented and amended
      being hereinafter referred to as the "Indenture"), to which Indenture and all
      indentures supplemental thereto reference is hereby made for a description
      of
      the rights, limitations of rights, obligations, duties and immunities thereunder
      of the Trustee, the Company and the holders of the Notes. By the terms of the
      Indenture, the Notes are issuable in series which may vary as to amount, date
      of
      maturity, rate of interest and in other respects as in the Indenture provided.
      This Note is one of the series of Notes designated on the face hereof as 6.60%
      Senior Notes, Series [B/D] due 2033 initially issued in the aggregate principal
      amount of $250,000,000.

     

    This
      Note
      may be redeemed by the Company at its option, in whole at any time or in part
      from time to time, upon not less than thirty but not more than sixty days’
      previous notice given by mail to the registered owners of the Note at a
      redemption price equal to the greater of (i) 100% of the principal of the Note
      being redeemed and (ii) the sum of the present values of the remaining scheduled
      payments of principal and interest on the Note being redeemed (excluding the
      portion of any such interest accrued to the date of redemption) discounted
      (for
      purposes of determining present value) to the redemption date on a semi-annual
      basis (assuming a 360-day year consisting of twelve 30-day months) at the
      Treasury Rate (as defined below) plus 30 basis points, plus, in each case,
      accrued interest thereon to the date of redemption.

     

    “Treasury
      Rate” means, with respect to any redemption date, the rate per annum equal to
      the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
      assuming a price for the Comparable Treasury Issue (expressed as a percentage
      of
      its principal amount) equal to the Comparable Treasury Price for such redemption
      date.

     

    “Comparable
      Treasury Issue” means the United States Treasury security selected by an
      Independent Investment Banker as having a maturity comparable to the remaining
      term of the Notes that would be utilized, at the time of selection and in
      accordance with customary financial practice, in pricing new issues of corporate
      debt securities of comparable maturity to the remaining term of the
      Notes.

     

    “Comparable
      Treasury Price” means, with respect to any redemption date, (1) the average of
      the bid and asked prices for the Comparable Treasury Issue (expressed in each
      case as a percentage of its principal amount) on the third Business Day
      preceding such redemption date, as set forth in the daily statistical release
      (or any successor release) published by the Federal Reserve Bank of New York
      and
      designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or
      (2) if such release (or any successor release) is not published or does not
      contain such prices on such third Business Day, the Reference Treasury Dealer
      redemption date.

     

    “Independent
      Investment Banker” means one of the Reference Treasury Dealers appointed by the
      Company and reasonably acceptable to the Trustee.

     

    “Reference
      Treasury Dealer” means a primary U.S. government securities dealer selected by
      the Company and reasonably acceptable to the Trustee.

     

    “Reference
      Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer
      and any redemption date, the average, as determined by the Trustee, of the
      bid
      and asked prices for the Comparable Treasury Issue (expressed in each case
      as a
      percentage of its principal amount) quoted in writing to the Trustee by such
      Reference Treasury Dealer at or before 5:00 p.m., New York City time, on the
      third Business Day preceding such redemption date.

     

    The
      Company shall not be required to (i) issue, exchange or register the transfer
      of
      any Notes during a period beginning at the opening of business 15 days before
      the day of the mailing of a notice of redemption of less than all the
      outstanding Notes of the same series and ending at the close of business on
      the
      day of such mailing, nor (ii) register the transfer of or exchange of any Notes
      of any series or portions thereof called for redemption. This Global Note is
      exchangeable for Notes in definitive registered form only under certain limited
      circumstances set forth in the Indenture.

     

    In
      the
      event of redemption of this Note in part only, a new Note or Notes of this
      series, of like tenor, for the unredeemed portion hereof will be issued in
      the
      name of the Holder hereof upon the surrender of this Note.

     

    In
      case
      an Event of Default, as defined in the Indenture, shall have occurred and be
      continuing, the principal of all of the Notes may be declared, and upon such
      declaration shall become, due and payable, in the manner, with the effect and
      subject to the conditions provided in the Indenture.

     

    The
      Indenture contains provisions for defeasance at any time of the entire
      indebtedness of this Note upon compliance by the Company with certain conditions
      set forth therein. This Note will not have a sinking fund.

     

    As
      described in the supplemental indenture relating to the Notes, so long as this
      Note is outstanding, the Company is subject to a limitation on issuance of
      Secured Debt as described therein.

     

    The
      Indenture contains provisions permitting the Company and the Trustee, with
      the
      consent of the Holders of not less than a majority in aggregate principal amount
      of the Notes of each series affected at the time outstanding, as defined in
      the
      Indenture, to execute supplemental indentures for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      the Indenture or of any supplemental indenture or of modifying in any manner
      the
      rights of the Holders of the Notes; provided, however, that no such supplemental
      indenture shall (i) extend the fixed maturity of any Notes of any series, or
      reduce the principal amount thereof, or reduce the rate or extend the time
      of
      payment of interest thereon, or reduce any premium payable upon the redemption
      thereof, or reduce the amount of the principal of a Discount Security that
      would
      be due and payable upon a declaration of acceleration of the maturity thereof
      pursuant to the Indenture, without the consent of the holder of each Note then
      outstanding and affected; (ii) reduce the aforesaid percentage of Notes, the
      holders of which are required to consent to any such supplemental indenture,
      or
      reduce the percentage of Notes, the holders of which are required to waive
      any
      default and its consequences, without the consent of the holder of each Note
      then outstanding and affected thereby; or (iii) modify any provision of Section
      6.01(c) of the Indenture (except to increase the percentage of principal amount
      of securities required to rescind and annul any declaration of amounts due
      and
      payable under the Notes), without the consent of the holder of each Note then
      outstanding and affected thereby. The Indenture also contains provisions
      permitting the Holders of a majority in aggregate principal amount of the Notes
      of all series at the time outstanding affected thereby, on behalf of the Holders
      of the Notes of such series, to waive any past default in the performance of
      any
      of the covenants contained in the Indenture, or established pursuant to the
      Indenture with respect to such series, and its consequences, except a default
      in
      the payment of the principal of or premium, if any, or interest on any of the
      Notes of such series. Any such consent or waiver by the registered Holder of
      this Note (unless revoked as provided in the Indenture) shall be conclusive
      and
      binding upon such Holder and upon all future Holders and owners of this Note
      and
      of any Note issued in exchange herefor or in place hereof (whether by
      registration or transfer or otherwise), irrespective of whether or not any
      notation of such consent or waiver is made upon this Note.

     

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and premium, if any, and interest
      on
      this Note at the time and place and at the rate and in the money herein
      prescribed.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      this Note is transferable by the registered holder hereof on the Security
      Register of the Company, upon surrender of this Note for registration of
      transfer at the office or agency of the Company as may be designated by the
      Company accompanied by a written instrument or instruments of transfer in form
      satisfactory to the Company or the Trustee duly executed by the registered
      Holder hereof or his or her attorney duly authorized in writing, and thereupon
      one or more new Notes of authorized denominations and for the same aggregate
      principal amount and series will be issued to the designated transferee or
      transferees. No service charge will be made for any such transfer, but the
      Company may require payment of a sum sufficient to cover any tax or other
      governmental charge payable in relation thereto.

     

    Prior
      to
      due presentment for registration of transfer of this Note, the Company, the
      Trustee, any paying agent and any Security Registrar may deem and treat the
      registered Holder hereof as the absolute owner hereof (whether or not this
      Note
      shall be overdue and notwithstanding any notice of ownership or writing hereon
      made by anyone other than the Note Registrar) for the purpose of receiving
      payment of or on account of the principal hereof and premium, if any, and
      interest due hereon and for all other purposes, and neither the Company nor
      the
      Trustee nor any paying agent nor any Security Registrar shall be affected by
      any
      notice to the contrary.

     

    No
      recourse shall be had for the payment of the principal of or the interest on
      this Note, or for any claim based hereon, or otherwise in respect hereof, or
      based on or in respect of the Indenture, against any incorporator, stockholder,
      officer or director, past, present or future, as such, of the Company or of
      any
      predecessor or successor corporation, whether by virtue of any constitution,
      statute or rule of law, or by the enforcement of any assessment or penalty
      or
      otherwise, all such liability being, by the acceptance hereof and as part of
      the
      consideration for the issuance hereof, expressly released waived and
      released.

     

    The
      Notes
      of this series are issuable only in registered form without coupons in
      denominations of $1,000 and any integral multiple thereof except that a Note
      issued to an Institutional Accredited Investor will be in denominations of
      at
      $250,000. As provided in the Indenture and subject to certain limitations,
      Notes
      of this series are exchangeable for a like aggregate principal amount of Notes
      of this series of a different authorized denomination, as requested by the
      Holder surrendering the same.

     

    All
      terms
      used in this Note which are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    This
      Note
      shall not be entitled to any benefit under the Indenture hereinafter referred
      to, be valid or become obligatory for any purpose until the Certificate of
      Authentication hereon shall have been signed by or on behalf of the
      Trustee.

     

    IN
      WITNESS WHEREOF, the Company has caused this Instrument to be
      executed.

     

    COLUMBUS
      SOUTHERN POWER COMPANY

    

    

    By:
      ______________________________________

    

    

            
      Attest:

     

    By:
      ____________________________

    

     

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM-

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT-_______

            	
              Custodian
                ________

              (Cust)                   
                (Minor)

            
	
              TEN
                ENT-

            	
              as
                tenants by the entireties

            	
              under
                Uniform Gifts to

              Minors
                Act

               

              _________________________

              (State)

            
	
              JT
                TEN-

            	
              As
                joint tenants with right of survivorship and not as tenants in
                common

            
	 	 	 

    

    Additional
      abbreviations may also be used

    though
      not on the above list.

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s) and transfer(s) unto
      ___________________ (please insert Social Security or other identifying number
      of assignee)

     

    __________________________________________________________________________________________________________________________

    PLEASE
      PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
      ASSIGNEE

     

    __________________________________________________________________________________________________________________________

     

    __________________________________________________________________________________________________________________________

    the
      within Note and all rights thereunder, hereby irrevocably constituting and
      appointing

     

    __________________________________________________________________________________________________________________________

    agent
      to
      transfer said Note on the books of the Company, with full power of substitution
      in the premises.

     

    
      	
              Dated:
                ___________

            	_________________________________________________________________________________________ 
	 	_________________________________________________________________________________________
	 	
              NOTICE:
                The signature to this assignment must correspond with the name as
                written
                upon the face of the within instrument in every particular without
                alteration or enlargement, or any change whatever.

            
	 	 

    

    
       

    

    

    In
      connection with any transfer of any of the Series B Notes evidenced by this
      certificate, the undersigned confirms that such Series B Notes are
      being:

     

    CHECK
      ONE
      BOX BELOW

     

    
      	
              (1)

               

            	 	
              exchanged
                for the undersigned’s own account without transfer; or

               

            
	
              (2)

               

            	 	
              transferred
                to a person whom the undersigned reasonably believes to be a “qualified
                institutional buyer” as defined in Rule 144A under the Securities Act of
                1933 who is purchasing such Series B Notes for such buyer’s own account or
                the account of a “qualified institutional buyer” in a transaction meeting
                the requirements of Rule 144A under the Securities Act of 1933 and
                any
                applicable securities laws of any state of the United States or any
                other
                jurisdiction; or

               

            
	
              (3)

               

            	 	
              exchanged
                or transferred pursuant to and in compliance with Rule 903 or 904
                of
                Regulation S under the Securities Act of 1933; or

               

            
	
              (4)

               

            	 	
              exchanged
                or transferred to an institutional “accredited investor” within the
                meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under
                the
                Securities Act pursuant to Rule 144A (and based upon an opinion of
                counsel
                if the Company or the Trustee so requests) and, to the knowledge
                of the
                transferor of the Series B Notes, such institutional accredited
                investor to whom such Note is to be transferred is not an “affiliate” (as
                defined in Rule 144 under the Securities Act) of the Company;
                or

               

            
	
              (5)

               

            	 	
              transferred
                pursuant to another available exemption from the registration requirements
                of the Securities Act of 1933.

               

            

    

    Unless
      one of the boxes is checked, the Trustee will refuse to register any of the
      Series B Notes evidenced by this certificate in the name of any person other
      than the registered Holder thereof; provided,
      however,
      that if
      box (3), (4) or (5) is checked, the Company may require, prior to registering
      any such transfer of the Series B Notes, such legal opinions,
      certifications and other information as the Company has reasonably requested
      to
      confirm that such transfer is being made pursuant to an exemption from, or
      in a
      transaction not subject to, the registration requirements of the Securities
      Act
      of 1933, such as the exemption provided by Rule 144 under such Act; provided,
      further,
      that if
      box (2) is checked, the transferee must also certify that it is a qualified
      institutional buyer as defined in Rule 144A.

     

    ________________________________________

    Signature

    

     

    _______________________________________

     

    

    
       

    

    

    TO
      BE
      COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

     

    The
      undersigned represents and warrants that it is purchasing this Series B Note
      for
      its own account or an account with respect to which it exercises sole investment
      discretion and that it and any such account is a “qualified institutional buyer”
      within the meaning of Rule 144A under the Securities Act of 1933, and is aware
      that the sale to it is being made in reliance on Rule 144A and acknowledges
      that
      it has received such information regarding the Company as the undersigned has
      requested pursuant to Rule 144A or has determined not to request such
      information and that it is aware that the transferor is relying upon the
      undersigned’s foregoing representations in order to claim the exemption from
      registration provided by Rule 144A.

     

    Date:
      _________________

     

    ______________________

     

    

     

    NOTICE:
      To be executed by an executive officer.

     

    

    SCHEDULE
      A

     

    The
      initial aggregate principal amount of Series B Notes evidenced by the
      Certificate to which this Schedule is attached is $___________. The notations
      on
      the following table evidence decreases and increases in the aggregate principal
      amount of Series B Notes evidenced by such Certificate.

     

    
      	
              Decrease
                in Principal Amount of Series B Notes

            	 	
              Increase
                in Principal Amount of Series B Notes

            	 	
              Principal
                Amount of Series B Notes Remaining After Such Decrease or
                Increase

            	 	
              Notation
                by

              Security
                Registrar

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    

    EXHIBIT
      B

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

                        BANK
      ONE, N.
      A.,

                        as
      Trustee

     

                                                                                               
      By:_______________________________

                                         Authorized
      Signatory

     

    

    EXHIBIT
      C

     

    FORM
      OF
      TRANSFER CERTIFICATE

     

    In
      connection with any transfer of any of the Series B Notes evidenced by this
      certificate, the undersigned confirms that such Series B Notes are
      being:

    
       

      CHECK
        ONE
        BOX BELOW

       

      
        	
                (1)

                 

              	 	
                exchanged
                  for the undersigned’s own account without transfer; or

                 

              
	
                (2)

                 

              	 	
                transferred
                  to a person whom the undersigned reasonably believes to be a “qualified
                  institutional buyer” as defined in Rule 144A under the Securities Act of
                  1933 who is purchasing such Series B Notes for such buyer’s own
                  account or the account of a “qualified institutional buyer” in a
                  transaction meeting the requirements of Rule 144A under the Securities
                  Act
                  of 1933 and any applicable securities laws of any state of the
                  United
                  States or any other jurisdiction; or

                 

              
	
                (3)

                 

              	 	
                exchanged
                  or transferred pursuant to and in compliance with Rule 903 or 904
                  of
                  Regulation S under the Securities Act of 1933; or

                 

              
	
                (4)

                 

              	 	
                exchanged
                  or transferred to an institutional “accredited investor” within the
                  meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under
                  the
                  Securities Act pursuant to Rule 144A (and based upon an opinion
                  of counsel
                  if the Company or the Trustee so requests) and, to the knowledge
                  of the
                  transferor of the Series B Notes, such institutional accredited
                  investor to whom such Note is to be transferred is not an “affiliate” (as
                  defined in Rule 144 under the Securities Act) of the Company;
                  or

                 

              
	
                (5)

                 

              	 	
                transferred
                  pursuant to another available exemption from the registration requirements
                  of the Securities Act of 1933.

                 

              

      

    

     

    Unless
      one of the boxes is checked, the Trustee will refuse to register any of the
      Series B Notes evidenced by this certificate in the name of any person
      other than the registered Holder thereof; provided,
      however,
      that if
      box (3) or (4) is checked, the Company may require, prior to registering any
      such transfer of the Series B Notes, such legal opinions, certifications
      and other information as the Company has reasonably requested to confirm that
      such transfer is being made pursuant to an exemption from, or in a transaction
      not subject to, the registration requirements of the Securities Act of 1933,
      such as the exemption provided by Rule 144 under such Act; provided,
      further,
      that if
      box (2) is checked, the transferee must also certify that it is a qualified
      institutional buyer as defined in Rule 144A.

     

    Signature

     

    

    TO
      BE
      COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

     

    The
      undersigned represents and warrants that it is purchasing this Series B Note
      for
      its own account or an account with respect to which it exercises sole investment
      discretion and that it and any such account is a “qualified institutional buyer”
      within the meaning of Rule 144A under the Securities Act of 1933, and is aware
      that the sale to it is being made in reliance on Rule 144A and acknowledges
      that
      it has received such information regarding the Company as the undersigned has
      requested pursuant to Rule 144A or has determined not to request such
      information and that it is aware that the transferor is relying upon the
      undersigned’s foregoing representations in order to claim the exemption from
      registration provided by Rule 144A.

     

    

     

    Date:
      _______________

     

    ______________

     

    

     

    NOTICE:
      To be executed by an executive officer.

     

    

 

    EXHIBIT
      D

     

    FORM
      OF
      LETTER TO BE DELIVERED BY

     

    INSTITUTIONAL
      ACCREDITED INVESTORS

     

    Ladies
      and Gentlemen:

     

    In
      connection with our proposed purchase of the 6.60% Senior Notes, Series B due
      2033 (the Notes) issued by Columbus Southern Power Company, an Ohio corporation
      (Issuer), we confirm that: 

     

    
      	 	
              1.

            	
              We
                are purchasing the Notes for our own account, or for one or more
                investor
                accounts for which we are acting as a fiduciary or agent, in each
                case for
                investment, and not with a view to, or for offer or sale in connection
                with, any distribution in violation of the Securities Act, subject
                to any
                requirement of law that the disposition of our property or the property
                of
                such investor account or accounts be at all times within our or their
                control and subject to our or their ability to resell the Notes pursuant
                to Rule 144A, Regulation S or any exemption from registration available
                under the Securities Act. 

            

    

     

    
      	 	
              2.

            	
              We
                are an institutional “accredited investor” within the meaning of Rule
                50l(a)(l), (2), (3) or (7) under the Securities Act who is purchasing
                Notes with a principal amount of at least $250,000 and, if the Notes
                are
                to be purchased for one or more accounts (the “investor accounts”) for
                which we are acting as fiduciary or agent, each such account is an
                institutional accredited investor who is purchasing Notes with a
                principal
                amount of at least $250,000. In the normal course of business or
                our
                investing activities, we invest in or purchase securities similar
                to the
                Notes and we have such knowledge and experience in financial business
                matters that we are capable of evaluating the merits and risks of
                purchasing the Notes. We are aware that we (or any investor account)
                may
                be required to bear the economic risk of an investment in the Notes
                for an
                indefinite period of time and we (or such investor account) are able
                to
                bear such risk for an indefinite period.

            

    

     

    
      	 	
              3.

            	
              We
                acknowledge that none of the Issuer, the initial purchasers or any
                persons
                representing any of them has made any representation to us with respect
                to
                any such entity or the offering or sale of any Notes, other than
                the
                information contained in the Issuer’s offering memorandum dated February
                11, 2003, related to the Notes, which offering memorandum has been
                delivered to it and upon which it is relying in making its investment
                decision with respect to the Notes. Accordingly, we acknowledge that
                no
                representation or warranty is made by the initial purchasers as to
                the
                accuracy or completeness of such materials. We have had access to
                such
                financial and other information concerning the Issuer and the Notes
                as we
                have deemed necessary in connection with our decision to purchase
                any of
                the Notes including an opportunity to ask questions of, and request
                information from, the Issuer and the initial purchasers.
                

            

    

     

    
      	 	
              4.

            	
              We
                understand and agree that the offer and sale of the Notes have not
                been
                registered under the Securities Act and that such Notes are being
                offered
                only in a transaction not involving any public offering within the
                meaning
                of the Securities Act, and that (A) if we decide to resell, pledge
                or
                otherwise transfer such Notes on which a legend setting forth these
                restrictions appears, such Notes may be resold, pledged or otherwise
                transferred only (i) to the Issuer, (ii) in a transaction entitled
                to an
                exemption from registration provided by Rule 144 under the Securities
                Act,
                (iii) so long as such Notes are eligible for resale pursuant to Rule
                144A,
                to a person whom we reasonably believe is a qualified institutional
                buyer
                that purchases for its own account or for the account of a qualified
                institutional buyer to whom notice is given that the resale, pledge
                or
                other transfer is being made in reliance on Rule 144A, (iv) outside
                the
                United States in a transaction meeting the requirements of Regulation
                S,
                (v) in accordance with another exemption from the registration
                requirements of the Securities Act (and based upon an opinion of
                counsel
                acceptable to the Issuer), in each case in accordance with any applicable
                securities laws of any state of the United States or (vi) pursuant
                to a
                registration statement which has been declared effective under the
                Securities Act and (B) we will, and each subsequent holder is required
                to,
                notify any purchaser of Notes from us or it of the resale restrictions
                referred to in (A) above, if then applicable. We acknowledge that
                the
                foregoing restrictions apply to holders of beneficial interest in
                the
                Notes, as well as to holders of the Notes.

            

    

     

    
      	 	
              5.

            	
              We
                understand that, on any proposed resale of any Notes, we will be
                required
                to furnish to the trustee and the Issuer such certifications, legal
                opinions and other information as the trustee and the Issuer may
                reasonably require to confirm that the proposed sale complies with
                the
                foregoing restrictions. We further understand that the Notes purchased
                by
                us will bear a legend to the foregoing effect.

            

    

     

    
      	 	
              6.

            	
              We
                acknowledge that the Issuer, the trustee, the initial purchasers
                and
                others will rely upon the truth and accuracy of the foregoing
                acknowledgements, representations and agreements and agree that if
                any of
                the foregoing acknowledgements, representations or agreements are
                no
                longer accurate, we shall promptly notify the Issuer, the trustee
                and the
                initial purchasers. If we are acquiring the Notes as a fiduciary
                or agent
                for one or more investor accounts, we represent that we have sole
                investment discretion with respect to each such account and we have
                full
                power to make the foregoing acknowledgements, representations and
                agreements on behalf of each account and that each such investor
                account
                is eligible to purchase the Notes. 

            

    

    

    
      	 	
              7.

            	
              The
                Issuer, the trustee and the initial purchasers are entitled to rely
                upon
                this letter and are irrevocably authorized to produce this letter
                or a
                copy hereof to any interested party in any administrative or legal
                proceeding or official inquiry with respect to the matters covered
                hereby.
                

            

    

     

    Very
      truly yours,

    

    

    By:

    Name:

    Title:Exhibit 4(h) - Company Order and Officers' Certificate

    
      
        

      

      Exhibit
        4(h)

      

      ____________
        __, ____

      

      Company
        Order and Officers' Certificate

      [Senior
        Notes], Series _

      

      

      Deutsche
        Bank Trust Company Americas, as Trustee

      60
        Wall
        Street

      New
        York,
        New York 10005

      

      Attn:
        Corporate Trust Division

      

      Ladies
        and Gentlemen:

      

      Pursuant
        to Article Two of the Indenture, dated as of September 1, 1997 (as it may
        be
        amended or supplemented, the "Indenture"), from Columbus Southern Power Company
        (the "Company") to Deutsche Bank Trust Company Americas, as trustee (the
        "Trustee"), and the Board Resolutions dated __________, ____, a copy of which
        certified by the Secretary or an Assistant Secretary of the Company is being
        delivered herewith under Section 2.01 of the Indenture, and unless otherwise
        provided in a subsequent Company Order pursuant to Section 2.04 of the
        Indenture,

      

      
        	
                1.

              	
                The
                  Company's [Senior Notes], Series _ (the "Notes") are hereby established.
                  The Notes shall be in substantially the form attached hereto as
                  Exhibit
                  1.

              
	 	 	 
	
                2.

              	
                The
                  terms and characteristics of the Notes shall be as follows (the
                  numbered
                  clauses set forth below corresponding to the numbered subsections
                  of
                  Section 2.01 of the Indenture, with terms used and not defined
                  herein
                  having the meanings specified in the Indenture):

              
	 	 	 
	 	
                (i)

              	
                the
                  aggregate principal amount of Notes which may be authenticated
                  and
                  delivered under the Indenture shall be limited to $____________,
                  except as
                  contemplated in Section 2.01(i) of the Indenture;

              
	 	 	 
	 	
                (ii)

              	
                the
                  date on which the principal of the Notes shall be payable shall
                  be
                  __________ __, ____;

              
	 	 	 
	 	
                (iii)

              	
                interest
                  shall accrue from the date of authentication of the Notes; the
                  Interest
                  Payment Dates on which such interest will be payable shall be March
                  31,
                  June 30, September 30 and December 31, and the Regular Record Date
                  for the
                  determination of holders to whom interest is payable on any such
                  Interest
                  Payment Date shall be one Business Day prior to the relevant Interest
                  Payment Date, except that if the Notes are no longer represented
                  by a
                  Global Note, the Regular Record Date shall be the close of business
                  on
                  March 15, June 15, September 15 or December 15, as the case may
                  be, next
                  preceding such Interest Payment Date; pro-vided that interest payable
                  on
                  the Stated Maturity Date or any Redemption Date shall be paid to
                  the
                  Person to whom principal shall be paid;

              
	 	 	 
	 	
                (iv)

              	
                the
                  interest rate at which the Notes shall bear interest shall be
                  ______%;

              
	 	 	 
	 	
                (v)

              	
                the
                  Notes shall be redeemable at the option of the Company, in whole
                  or in
                  part, at any time on or after __________ __, ____, upon not less
                  than 30
                  nor more than 60 days' notice, at 100% of the principal amount
                  redeemed
                  together with accrued and unpaid interest to the redemption
                  date;

              
	 	 	 
	 	
                (vi)

              	
                a)
                  the Notes shall be issued in the form of a Global Note; (b) the
                  Depositary
                  for such Global Note shall be The Depository Trust Company; and
                  (c) the
                  procedures with respect to transfer and exchange of Global Notes
                  shall be
                  as set forth in the form of Note attached hereto;

              
	 	 	 
	 	
                (vii)

              	
                the
                  title of the Notes shall be "[Senior Notes], Series _";

              
	 	 	 
	 	
                (viii)

              	
                the
                  form of the Notes shall be as set forth in Paragraph 1,
                  above;

              
	 	 	 
	 	
                (ix)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (x)

              	
                the
                  Notes shall not be subject to a Periodic Offering;

              
	 	 	 
	 	
                (xi)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (xii)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (xiii)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (xiv)

              	
                the
                  Notes shall be issuable in denominations of $25 and any integral
                  multiple
                  thereof;

              
	 	 	 
	 	
                (xv)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (xvi)

              	
                the
                  Notes shall not be issued as Discount Securities;

              
	 	 	 
	 	
                (xvii)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (xviii)

              	
                not
                  applicable;

              
	 	 	 
	 	
                (xix)

              	
                not
                  applicable;

              
	 	 	 
	
                3.

              	
                You
                  are hereby requested to authenticate $____________ aggregate principal
                  amount of ______% [Senior Notes], Series ___, due __________ __,
                  ____ in
                  such name as requested by The Depository Trust Company ("DTC")
                  in the
                  Letter of Representations dated __________ __, ____, from the Company
                  and
                  the Trustee to DTC in the manner provided by the
                  Indenture.

              
	 	 	 
	
                4.

              	
                You
                  are hereby requested to hold the Notes as custodian for DTC in
                  accordance
                  with the Letter of Representations.

              
	 	 	 
	
                5.

              	
                Concurrently
                  with this Company Order, an Opinion of Counsel under Sections 2.04
                  and
                  13.06 of the Indenture is being delivered to you.

              
	 	 	 
	
                6.

              	
                The
                  undersigned _______________ and __________ __________, the Treasurer
                  and
                  Assistant Secretary, respectively, of the Company do hereby certify
                  that:

              
	 	 	 
	 	
                (i)

              	
                we
                  have read the relevant portions of the Indenture, including without
                  limitation the conditions precedent provided for therein relating
                  to the
                  action proposed to be taken by the Trustee as requested in this
                  Company
                  Order and Officers' Certificate, and the definitions in the Indenture
                  relating thereto;

              
	 	 	 
	 	
                (ii)

              	
                we
                  have read the Board Resolutions of the Company and the Opinion
                  of Counsel
                  referred to above;

              
	 	 	 
	 	
                (iii)

              	
                we
                  have conferred with other officers of the Company, have examined
                  such
                  records of the Company and have made such other investigation as
                  we deemed
                  relevant for purposes of this certificate;

              
	 	 	 
	 	
                (iv)

              	
                in
                  our opinion, we have made such examination or investigation as
                  is
                  necessary to enable us to express an informed opinion as to whether
                  or not
                  such conditions have been complied with; and

              
	 	 	 
	 	
                (v)

              	
                on
                  the basis of the foregoing, we are of the opinion that all conditions
                  precedent provided for in the Indenture relating to the action
                  proposed to
                  be taken by the Trustee as requested herein have been complied
                  with.

              
	 	 	 

      

      

      

      Kindly
        acknowledge receipt of this Company Order and Officers' Certificate, including
        the documents listed herein, and confirm the arrangements set forth herein
        by
        signing and returning the copy of this document attached hereto.

      

      Very
        truly yours,

      

      

      COLUMBUS
        SOUTHERN POWER COMPANY

      

      

      By:___________________________

      Treasurer

      

      

      And:__________________________

      Assistant
        Secretary

      

      

      Acknowledged
        by Trustee:

      

      

      By:___________________________

      Vice
        President

      

       

      

      Exhibit
        1

      

      

      [Unless
        this certificate is presented by an authorized representative of The Depository
        Trust Company (55 Water Street, New York, New York) to the issuer or its
        agent
        for registration of transfer, exchange or payment, and any certificate to
        be
        issued is registered in the name of Cede & Co. or in such other name as is
        requested by an authorized representative of The Depository Trust Company
        and
        any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
        FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
        registered owner hereof, Cede & Co., has an interest herein. Except as
        otherwise provided in Section 2.11 of the Indenture, this Security may be
        transferred, in whole but not in part, only to another nominee of the Depository
        or to a successor Depository or to a nominee of such successor
        Depository.]

      

      No.

       

      COLUMBUS
        SOUTHERN POWER COMPANY

      [Senior
        Notes], Series _

      

      CUSIP:                                                Original
        Issue Date:

       

      Maturity
        Date:                                                                           Interest
        Rate:

      

      Principal
        Amount:

      

      Redeemable: Yes
        ____ No
        ____

      In
        Whole:      Yes
        ____ No
        ____

      In
        Part:         
Yes
        ____ No
        ____

      

      Initial
        Redemption Date:

      

      Redemption
        Limitation Date:

      

      Initial
        Redemption Price:

      

      Reduction
        Percentage:

      

      COLUMBUS
        SOUTHERN POWER COMPANY, a corporation duly organized and existing under the
        laws
        of the State of Ohio (herein referred to as the "Company", which term includes
        any successor corporation under the Indenture hereinafter referred to), for
        value received, hereby promises to pay to CEDE & CO. or registered assigns,
        the Principal Amount specified above on the Stated Maturity Date specified
        above, and to pay interest on said Principal Amount from the Original Issue
        Date
        specified above or from the most recent interest payment date (each such
        date,
        an "Interest Payment Date") to which interest has been paid or duly provided
        for, quarterly in arrears on March 31, June 30, September 30 and December
        31 in
        each year, commencing (except as provided below) with the Interest Payment
        Date
        next succeeding the Original Issue Date specified above, at the Interest
        Rate
        per annum specified above, until the Principal Amount shall have been paid
        or
        duly provided for. Interest shall be computed on the basis of a 360-day year
        of
        twelve 30-day months.

      

      The
        interest so payable, and punctually paid or duly provided for, on any Interest
        Payment Date, as provided in the Indenture, as hereinafter defined, shall
        be
        paid to the Person in whose name this Note (or one or more Predecessor
        Securities) shall have been registered at the close of business on the Regular
        Record Date with respect to such Interest Payment Date, which shall be the
        close
        of business on the Business Day next preceding such Interest Payment Date.
        Any
        such interest not so punctually paid or duly provided for shall forthwith
        cease
        to be payable to the Holder on such Regular Record Date and shall be paid
        as
        provided in said Indenture.

      

      If
        any
        Interest Payment Date, any Redemption Date or the Stated Maturity Date is
        not a
        Business Day, then payment of the amounts due on this Note on such date will
        be
        made on the next succeeding Business Day, and no interest shall accrue on
        such
        amounts for the period from and after such Interest Payment Date, Redemption
        Date or Stated Maturity Date, as the case may be, except that, if such Business
        Day is in the next succeeding calendar year, such payment shall be made on
        the
        immediately preceding Business Day, with the same force and effect as if
        made on
        such date. The principal of (and premium, if any) and the interest on this
        Note
        shall be payable at the office or agency of the Company maintained for that
        purpose in the Borough of Manhattan, the City of New York, New York, in any
        coin
        or currency of the United States of America which at the time of payment
        is
        legal tender for payment of public and private debts; provided,
        however,
        that
        payment of interest (other than interest payable on the Stated Maturity Date
        or
        any Redemption Date) may be made at the option of the Company by check mailed
        to
        the registered holder at such address as shall appear in the Note
        Register.

      

      This
        Note
        is one of a duly authorized series of Notes of the Company (herein sometimes
        referred to as the "Notes"), specified in the Indenture, all issued or to
        be
        issued in one or more series under and pursuant to an Indenture dated as
        of
        September 1, 1997 duly executed and delivered between the Company and Deutsche
        Bank Trust Company Americas, a national banking association organized and
        existing under the laws of the United States, as Trustee (herein referred
        to as
        the "Trustee") (such Indenture, as originally executed and delivered and
        as
        thereafter supplemented and amended being herein-after referred to as the
        "Indenture"), to which Indenture and all indentures supplemental thereto
        or
        Company Orders reference is hereby made for a description of the rights,
        limitations of rights, obligations, duties and immunities thereunder of the
        Trustee, the Company and the holders of the Notes. By the terms of the
        Indenture, the Notes are issuable in series which may vary as to amount,
        date of
        maturity, rate of interest and in other respects as in the Indenture provided.
        This Note is one of the series of Notes designated on the face
        hereof.

      

      If
        so
        specified on the face hereof and subject to the terms of Article Three of
        the
        Indenture, this Note is subject to redemption at any time on or after the
        Initial Redemption Date specified on the face hereof, as a whole or, if
        specified, in part, at the election of the Company, at the applicable redemption
        price (as described below) plus any accrued but unpaid interest to the date
        of
        such redemption. Unless otherwise specified on the face hereof, such redemption
        price shall be the Initial Redemption Price specified on the face hereof
        for the
        twelve-month period commencing on the Initial Redemption Date and shall decline
        for the twelve-month period commencing on each anniversary of the Initial
        Redemption Date by a percentage of principal amount equal to the Reduction
        Percentage specified on the face hereof until such redemption price is 100%
        of
        the principal amount of this Note to be redeemed.

      

      Notwithstanding
        the foregoing, the Company may not, prior to the Redemption Limitation Date,
        if
        any, specified on the face hereof, redeem any Note of this series as
        contemplated above as a part of, or in anticipation of, any refunding operation
        by the application, directly or indirectly, of moneys borrowed having an
        effective interest cost to the Company (calculated in accordance with generally
        accepted financial practice) of less than the effective interest cost to
        the
        Company (similarly calculated) of this Note.

      

      This
        Note
        shall be redeemable to the extent set forth herein and in the Indenture upon
        not
        less than thirty, but not more than sixty, days previous notice by mail to
        the
        registered owner.

      

      The
        Company shall not be required to (i) issue, exchange or register the transfer
        of
        any Notes during a period beginning at the opening of business 15 days before
        the day of the mailing of a notice of redemption of less than all the
        outstanding Notes of the same series and ending at the close of business
        on the
        day of such mailing, nor (ii) register the transfer of or exchange of any
        Notes
        of any series or portions thereof called for redemption. This Global Note
        is
        exchangeable for Notes in definitive registered form only under certain limited
        circumstances set forth in the Indenture.

      

      In
        the
        event of redemption of this Note in part only, a new Note or Notes of this
        series, of like tenor, for the unredeemed portion hereof will be issued in
        the
        name of the Holder hereof upon the surrender of this Note.

      

      In
        case
        an Event of Default, as defined in the Indenture, shall have occurred and
        be
        continuing, the principal of all of the Notes may be declared, and upon such
        declaration shall become, due and payable, in the manner, with the effect
        and
        subject to the conditions provided in the Indenture.

      

      The
        Indenture contains provisions for defeasance at any time of the entire
        indebtedness of this Note upon compliance by the Company with certain conditions
        set forth therein.

      

      The
        Indenture contains provisions permitting the Company and the Trustee, with
        the
        consent of the Holders of not less than a majority in aggregate principal
        amount
        of the Notes of each series affected at the time outstanding, as defined
        in the
        Indenture, to execute supplemental indentures for the purpose of adding any
        provisions to or changing in any manner or eliminating any of the provisions
        of
        the Indenture or of any supplemental indenture or of modifying in any manner
        the
        rights of the Holders of the Notes; provided, however, that no such supplemental
        indenture shall (i) extend the fixed maturity of any Notes of any series,
        or
        reduce the principal amount thereof, or reduce the rate or extend the time
        of
        payment of interest thereon, or reduce any premium payable upon the redemption
        thereof, or reduce the amount of the principal of a Discount Security that
        would
        be due and payable upon a declaration of acceleration of the maturity thereof
        pursuant to the Indenture, without the consent of the holder of each Note
        then
        outstanding and affected; (ii) reduce the aforesaid percentage of Notes,
        the
        holders of which are required to consent to any such supplemental indenture,
        or
        reduce the percentage of Notes, the holders of which are required to waive
        any
        default and its consequences, without the consent of the holder of each Note
        then outstanding and affected thereby; or (iii) modify any provision of Section
        6.01(c) of the Indenture (except to increase the percentage of principal
        amount
        of securities required to rescind and annul any declaration of amounts due
        and
        payable under the Notes), without the consent of the holder of each Note
        then
        outstanding and affected thereby. The Indenture also contains provisions
        permitting the Holders of a majority in aggregate principal amount of the
        Notes
        of all series at the time outstanding affected thereby, on behalf of the
        Holders
        of the Notes of such series, to waive any past default in the performance
        of any
        of the covenants contained in the Indenture, or established pursuant to the
        Indenture with respect to such series, and its consequences, except a default
        in
        the payment of the principal of or premium, if any, or interest on any of
        the
        Notes of such series. Any such consent or waiver by the registered Holder
        of
        this Note (unless revoked as provided in the Indenture) shall be conclusive
        and
        binding upon such Holder and upon all future Holders and owners of this Note
        and
        of any Note issued in exchange herefor or in place hereof (whether by
        registration of transfer or otherwise), irrespective of whether or not any
        notation of such consent or waiver is made upon this Note.

      

      No
        reference herein to the Indenture and no provision of this Note or of the
        Indenture shall alter or impair the obligation of the Company, which is absolute
        and unconditional, to pay the principal of and premium, if any, and interest
        on
        this Note at the time and place and at the rate and in the money herein
        prescribed.

      

      As
        provided in the Indenture and subject to certain limitations therein set
        forth,
        this Note is transferable by the registered holder hereof on the Note Register
        of the Company, upon surrender of this Note for registration of transfer
        at the
        office or agency of the Company as may be designated by the Company accompanied
        by a written instrument or instruments of transfer in form satisfactory to
        the
        Company or the Trustee duly executed by the registered Holder hereof or his
        or
        her attorney duly authorized in writing, and thereupon one or more new Notes
        of
        authorized denominations and for the same aggregate principal amount and
        series
        will be issued to the designated transferee or transferees. No service charge
        will be made for any such transfer, but the Company may require payment of
        a sum
        sufficient to cover any tax or other governmental charge payable in relation
        thereto.

      

      Prior
        to
        due presentment for registration of transfer of this Note, the Company, the
        Trustee, any paying agent and any Note Registrar may deem and treat the
        registered Holder hereof as the absolute owner hereof (whether or not this
        Note
        shall be overdue and notwithstanding any notice of ownership or writing hereon
        made by anyone other than the Note Registrar) for the purpose of receiving
        payment of or on account of the principal hereof and premium, if any, and
        interest due hereon and for all other purposes, and neither the Company nor
        the
        Trustee nor any paying agent nor any Note Registrar shall be affected by
        any
        notice to the contrary.

      

      No
        recourse shall be had for the payment of the principal of or the interest
        on
        this Note, or for any claim based hereon, or otherwise in respect hereof,
        or
        based on or in respect of the Indenture, against any incorporator, stockholder,
        officer or director, past, present or future, as such, of the Company or
        of any
        predecessor or successor corporation, whether by virtue of any constitution,
        statute or rule of law, or by the enforcement of any assessment or penalty
        or
        otherwise, all such liability being, by the acceptance hereof and as part
        of the
        consideration for the issuance hereof, expressly waived and
        released.

      

      The
        Notes
        of this series are issuable only in registered form without coupons in
        denominations of $25 and any integral multiple thereof. As provided in the
        Indenture and subject to certain limitations, Notes of this series are
        exchangeable for a like aggregate principal amount of Notes of this series
        of a
        different authorized denomination, as requested by the Holder surrendering
        the
        same.

      

      All
        terms
        used in this Note which are defined in the Indenture shall have the meanings
        assigned to them in the Indenture.

      

      This
        Note
        shall not be entitled to any benefit under the Indenture hereinafter referred
        to, be valid or become obligatory for any purpose until the Certificate of
        Authentication hereon shall have been signed by or on behalf of the
        Trustee.

      

      IN
        WITNESS WHEREOF, the Company has caused this Instrument to be
        executed.

      

      COLUMBUS
        SOUTHERN POWER COMPANY

      

      

      By:___________________________

      

      

      Attest:

      

      

      By:___________________________

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Notes of the series of Notes designated in accordance with, and
        referred to in, the within-mentioned Indenture.

      

      Dated:_______________

      

      DEUTSCHE
        BANK TRUST COMPANY AMERICAS, as Trustee

      

      

      By:___________________________

          
        Authorized Signatory

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
        unto

      

      (PLEASE
        INSERT SOCIAL SECURITY OR OTHER

            
        IDENTIFYING NUMBER OF ASSIGNEE)

      

      _______________________________________

      

      ___________________________________________________________________

      

      ___________________________________________________________________

      (PLEASE
        PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF

      ___________________________________________________________________

      ASSIGNEE)
        the within Note and all rights thereunder, hereby

      ___________________________________________________________________

      irrevocably
        constituting and appointing such person attorney to 

      ___________________________________________________________________

      transfer
        such Note on the books of the Issuer, with full

      ___________________________________________________________________

      power
        of
        substitution in the premises.

      

      

      

      Dated:________________________  _________________________

      

       

      

        NOTICE:     The
          signature
          to this assignment must correspond with the name as written 

                                 
          upon
          the
          face of the within Note in every particular, without alteration
          or

                                 
          enlargement or any change whatever and NOTICE: Signature(s) must be

                                 
          guaranteed by a financial institution that is a member of the Securities
          

                                 
          Transfer Agents Medallion Program ("STAMP"), the Stock Exchange 

                                 
          Medallion Program ("SEMP") or the New York Stock Exchange, Inc.
          

                                 
          Medallion Signature Program ("MSP").

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