Document:

EXHIBIT 4(d)

                       SOUTHWESTERN ELECTRIC POWER COMPANY

                                       and

                              THE BANK OF NEW YORK,
                                   AS TRUSTEE

                               -------------------

                          FIRST SUPPLEMENTAL INDENTURE

                          Dated as of February 25, 2000

                          Supplemental to the Indenture
                          dated as of February 25, 2000

                          Floating Rate Notes Due 2002

<PAGE>

            FIRST SUPPLEMENTAL INDENTURE, dated as of February 25, 2000, between
SOUTHWESTERN  ELECTRIC POWER COMPANY,  a corporation duly organized and existing
under the laws of the State of  Delaware  (the  "Company"),  and THE BANK OF NEW
YORK, a New York banking  corporation  organized and existing  under the laws of
the State of New York, as Trustee under the Original Indenture referred to below
(the "Trustee").

                             RECITALS OF THE COMPANY

            The Company has heretofore  executed and delivered to the Trustee an
indenture dated as of February 25, 2000 (the "Original  Indenture"),  to provide
for the issuance from time to time of its  debentures,  notes or other evidences
of  indebtedness  (the  "Senior  Notes"),  the form and terms of which are to be
established as set forth in Section 201 and 301 of the Original Indenture.

            Section 901 of the Original Indenture provides,  among other things,
that the Company and the Trustee may enter into  indentures  supplemental to the
Original Indenture for, among other things, the purpose of establishing the form
and terms of the Senior Notes of any series as permitted in Sections 201 and 301
of the Original Indenture.

            The  Company  desires to create a series of the  Senior  Notes in an
aggregate  principal amount of up to $150,000,000 to be designated the "Floating
Rate Notes Due 2002" (the "Floating Rate Notes"),  and all action on the part of
the Company necessary to authorize the issuance of the Floating Rate Notes under
the  Original  Indenture  and this First  Supplemental  Indenture  has been duly
taken.

            All acts and things necessary to make the Floating Rate Notes,  when
executed  by the Company  and  completed,  authenticated  and  delivered  by the
Trustee as  provided  in the  Original  Indenture  and this  First  Supplemental
Indenture,  the valid and binding  obligations  of the Company and to constitute
these  presents  a  valid  and  binding  supplemental  indenture  and  agreement
according to its terms, have been done and performed.

            NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

That in  consideration of the premises and of the acceptance and purchase of the
Floating Rate Notes by the Holders  thereof and of the  acceptance of this trust
by the Trustee, the Company covenants and agrees with the Trustee, for the equal
benefit of the Holders of the Floating Rate Notes, as follows:

                                   ARTICLE ONE

                                   Definitions

      The use of the terms and  expressions  herein  is in  accordance  with the
definitions,  uses and constructions contained in the Original Indenture and the
form of the Floating Rate Notes attached hereto as Exhibit A.

                                   ARTICLE TWO

            Terms and Issuance of the Floating Rate Notes Due 2002

SECTION 201. Issue of Floating Rate Notes.

      A series of Senior  Notes which shall be  designated  the  "Floating  Rate
Notes Due 2002" shall be executed, authenticated and delivered from time to time
in accordance  with the  provisions of, and shall in all respects be subject to,
the terms,  conditions  and covenants of, the Original  Indenture and this First
Supplemental  Indenture  (including  the form of  Global  Security  set forth in
Exhibit A hereto).  The  aggregate  principal  amount of the Floating Rate Notes
which may be authenticated and delivered under this First Supplemental Indenture
shall not,  except as permitted  by the  provisions  of the Original  Indenture,
exceed $150,000,000.

SECTION 202. Form of Floating Rate Notes; Incorporation of Terms.

            The form of the Floating  Rate Notes shall be  substantially  in the
form of Exhibit A attached  hereto.  The terms of such  Floating  Rate Notes are
herein  incorporated  by  reference  and are  part of  this  First  Supplemental
Indenture.

SECTION 203. Depositary for Global Securities.

            The Depositary for any Global Securities of the series of which this
Floating Rate Note is a part shall be the  Depository  Trust Company in The City
of New York.

SECTION 204. Restrictions on Liens.

      The covenant  contained in Section 1007 of the Original Indenture shall be
applicable to the Floating Rate Notes.

SECTION 205. Place of Payment.

            The Place of Payment in respect of the  Floating  Rate Notes will be
at the principal  office or place of business of the Trustee or its successor in
trust under the Indenture,  which, at the date hereof, is located at 101 Barclay
Street, New York, NY 10286, Attention: Corporate Trust Trustee.

                                  ARTICLE THREE

                                  Miscellaneous

SECTION 301. Execution as Supplemental Indenture.

            This First Supplemental Indenture is executed and shall be construed
as an indenture  supplemental to the Original  Indenture and, as provided in the
Original Indenture, this First Supplemental Indenture forms a part thereof.

SECTION 302. Conflict with Trust Indenture Act.

            If any provision hereof limits,  qualifies or conflicts with another
provision  hereof  which is required  to be included in this First  Supplemental
Indenture by any of the  provisions  of the Trust  Indenture  Act, such required
provision shall control.

SECTION 303. Effect of Headings.

            The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.

SECTION 304. Successors and Assigns.

            All  covenants   and   agreements  by  the  Company  in  this  First
Supplemental  Indenture  shall  bind its  successors  and  assigns,  whether  so
expressed or not.

SECTION 305. Separability Clause.

            In case any provision in this First Supplemental Indenture or in the
Floating Rate Notes shall be invalid,  illegal or  unenforceable,  the validity,
legality and enforceability of the remaining  provisions shall not in any way be
affected or impaired thereby.

SECTION 306. Benefits of First Supplemental Indenture.

            Nothing in this First Supplemental Indenture or in the Floating Rate
Notes,  express or  implied,  shall give to any  Person,  other than the parties
hereto and their successors  hereunder and the Holders, any benefit or any legal
or equitable right, remedy or claim under this First Supplemental Indenture.

SECTION 307. Execution and Counterparts.

            This First  Supplemental  Indenture may be executed in any number of
counterparts,  each of which  shall be  deemed to be an  original,  but all such
counterparts shall together constitute but one and the same instrument.

            IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this First
Supplemental  Indenture to be duly executed and their respective corporate seals
to be  hereunto  affixed  and  attested,  all as of the day and year first above
written.

                                    SOUTHWESTERN ELECTRIC POWER COMPANY

                                    By______________________________
                                      Name:
                                      Title:
Attest:

-------------------------
Name:
Title:
                                    THE BANK OF NEW YORK,
                                    as Trustee

                                    By______________________________
                                     Name:  Remo Reale
                                     Title: Vice President
Attest:

-------------------------
Name:
Title:
<PAGE>

STATE OF _________)
                  : ss.:
COUNTY OF ________)

            On the ____ day of  __________,  2000,  before  me  personally  came
_______________________,  to me known,  who, being by me duly sworn,  did depose
and say that she is a ______________ of Southwestern Electric Power Company, one
of the  corporations  described in and which executed the foregoing  instrument;
that he knows  the seal of said  corporation;  that  the  seal  affixed  to said
instrument is such  corporate  seal;  that it was so affixed by authority of the
Board of Directors of said  corporation,  and that he signed his name thereto by
like authority.

                                    -----------------------------

STATE OF NEW YORK )
                        : ss.:
COUNTY OF NEW YORK)

            On the ____ day of ___________, 2000, before me personally came Remo
Reale, to me known, who, being by me duly sworn, did depose and say that he is a
Vice President of The Bank of New York, a New York banking  corporation,  one of
the corporations described in and which executed the foregoing instrument;  that
he knows the seal of said corporation;  that the seal affixed to said instrument
is such  corporate  seal;  that it was so affixed by  authority  of the Board of
Directors  of said  corporation,  and that he signed  his name  thereto  by like
authority.

<PAGE>
                                                                       EXHIBIT A
                       [Form of Face of Global Security]

      THIS  SECURITY IS A GLOBAL  SECURITY  WITHIN THE MEANING OF THE  INDENTURE
HEREINAFTER  REFERRED  TO AND IS  REGISTERED  IN THE NAME OF A  DEPOSITARY  OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON  OTHER THAN THE  DEPOSITARY  OR ITS NOMINEE  ONLY IN THE
LIMITED  CIRCUMSTANCES  DESCRIBED  IN THE  INDENTURE,  AND NO  TRANSFER  OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO
A NOMINEE OF THE  DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR  ANOTHER  NOMINEE  OF THE  DEPOSITARY)  MAY BE  REGISTERED  EXCEPT IN LIMITED
CIRCUMSTANCES.

      Unless this  certificate is presented by an authorized  representative  of
The Depository Trust Company,  a New York corporation  ("DTC"),  to Southwestern
Electric Power Company or its agent for registration of transfer,  exchange,  or
payment,  and any certificate  issued is registered in the name of Cede & Co. or
in such other name as is requested by an authorized  representative  of DTC (and
any payment is made to Cede & Co. or to such other  entity as is requested by an
authorized representative of DTC), 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.

                       SOUTHWESTERN ELECTRIC POWER COMPANY

                          Floating Rate Notes Due 2002

No. 1
                                                                  $150,000,000
                                                          CUSIP NO. 845437 AZ5

      SOUTHWESTERN  ELECTRIC  POWER  COMPANY,  a corporation  duly organized and
existing  under the laws of the State of  Delaware  (the  "Company",  which term
includes any successor under the Indenture  hereinafter  referred to), for value
received,  hereby  promises to pay to Cede & Co.,  or  registered  assigns,  the
principal sum of ONE HUNDRED AND FIFTY MILLION DOLLARS  ($150,000,000)  on March
1, 2002 (the "Final  Maturity"),  and to pay interest thereon from March 3, 2000
or from the most recent Interest Payment Date to which interest has been paid or
duly  provided  for,  quarterly in arrears on March 1, June 1,  September 1, and
December 1 in each  year,  commencing  June 1,  2000,  at the rate of LIBOR plus
0.23%, until the principal hereof is paid or made available for payment.

      The calculation agent,  initially The Bank of New York, will calculate the
interest  rate on this  Security.  The interest rate will be equal to LIBOR plus
0.23%.  The interest rate in effect for the period from March 3, 2000 to June 1,
2000, the initial  Interest Reset Date, will be LIBOR, as determined on March 1,
2000, plus 0.23% (the "Initial Interest Rate"). The calculation agent will reset
the  interest  rate on each  Interest  Payment  Date (each such day an "Interest
Reset Date").  The second London  Business Day preceding an Interest  Reset Date
will be the  "Interest  Determination  Date" for that Interest  Reset Date.  The
interest  rate in effect on each day that is not an Interest  Reset Date will be
the interest rate determined as of the Interest Determination Date pertaining to
the  immediately  preceding  Interest Reset Date. The interest rate in effect on
any day that is an Interest  Reset Date will be the interest rate  determined as
of the Interest  Determination  Date  pertaining  to that  Interest  Reset Date,
except that the interest rate in effect for the period from and including  March
3, 2000 to the first Interest Reset Date will be the Initial  Interest Rate. The
amount of  interest  payable  for any period  will be computed on the basis of a
360-day year for the actual number of days elapsed. If any Interest Payment Date
(other than the Stated  Maturity  hereof or a  Redemption  Date  herefor)  would
otherwise be a day that is not a Business Day, the Interest Payment Date will be
postponed to the next succeeding  Business Day, except that if such Business Day
falls in the next succeeding calendar month, such Interest Payment Date shall be
the  immediately  preceding  Business Day. If the Stated  Maturity hereof or any
Redemption  Date herefor is not a Business  Day,  then payment of principal  and
interest payable on such date will be made on the next succeeding day which is a
Business Day (and  without any interest or other  payment in respect of any such
delay),  in each case with the same force and effect as if made on such date.  A
"Business  Day"  shall  mean any day,  except a  Saturday,  a Sunday  or a legal
holiday in The City of New York on which banking  institutions are authorized or
required by law,  regulation or executive order to close;  provided that the day
is also a London  Business  Day.  "London  Business  Day" means any day on which
dealings in United States dollars are transacted in the London interbank market.

      The  calculation  agent  will  determine  "LIBOR" in  accordance  with the
following provisions:

(i)   With respect to any Interest Determination Date, LIBOR will be the rate
            for deposits in United States dollars having a maturity of three
            months commencing on the first day of the applicable Interest
            Period that appears on Telerate Page 3750 as of 11:00 a.m.,
            London time, on that Interest Determination Date.  If no rate
            appears, LIBOR, in respect to that Interest Determination Date,
            will be determined in accordance with the provisions described in
            (ii) below.

(ii)        With  respect  to an  Interest  Determination  Date on which no rate
            appears  on  Telerate  Page 3750,  as  specified  in (i) above,  the
            calculation  agent will request the principal London offices of each
            of four major reference  banks in the London  interbank  market,  as
            selected by the calculation  agent, to provide the calculation agent
            with its offered quotation for deposits in United States dollars for
            the  period  of three  months,  commencing  on the  first day of the
            applicable  Interest Period,  to prime banks in the London interbank
            market at  approximately  11:00 a.m.,  London time, on that Interest
            Determination  Date and in a principal amount that is representative
            for a single  transaction in United States dollars in that market at
            that time. If at least two  quotations  are provided,  then LIBOR on
            that  Interest  Determination  Date will be the  arithmetic  mean of
            those  quotations.  If fewer than two quotations are provided,  then
            LIBOR on the Interest Determination Date will be the arithmetic mean
            of the rates quoted at approximately  11:00 a.m., in The City of New
            York, on the Interest Determination Date by three major banks in The
            City of New York  selected  by the  calculation  agent  for loans in
            United  States  dollars  to  leading   European   banks,   having  a
            three-month   maturity   and  in  a   principal   amount   that   is
            representative  for a single transaction in United States dollars in
            that  market  at that  time;  provided,  however,  that if the banks
            selected by the  calculation  agent are not providing  quotations in
            the manner  described by this sentence,  LIBOR determined as of that
            Interest Determination Date will be LIBOR in effect on that Interest
            Determination Date.

      "Telerate  Page  3750",  means the  display  designated  as "Page 3750" on
Bridge Telerate,  Inc., or any successor service,  for the purpose of displaying
the London interbank rates of major banks for United States dollars.

      "Interest  Period" means the period from and including  March 3, 2000, to,
and excluding,  the first Interest  Payment Date thereafter from, and including,
the immediately  preceding Interest Payment Date to which interest has been paid
or duly provided for to, but  excluding,  the next Interest  Payment Date or the
Maturity hereof, as the case may be.

      The interest so payable,  and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person
in  whose  name  this  Security  (or  one or  more  Predecessor  Securities)  is
registered  at the  close  of  business  on the  Regular  Record  Date  for such
interest,  which shall be the fifteenth  calendar day immediately  preceding the
Interest  Payment Date (whether or not a Business Day). Any such interest not so
punctually  paid or duly provided for will forthwith  cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor  Securities) is registered at the
close of  business on a Special  Record  Date for the payment of such  Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities  of this  series not less than 10 days prior to such  Special  Record
Date,  or be paid at any time in any other lawful manner not  inconsistent  with
the  requirements  of any  securities  exchange on which the  Securities of this
series may be listed,  and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

      Payment of the principal of (and premium, if any) and any interest on this
Security will be made at the office or agency of the Company maintained for that
purpose  in the  Borough  of  Manhattan,  The City of New York,  in such coin or
currency  of the  United  States of  America  as at the time of payment is legal
tender for payment of public and private debts;  provided,  however, that at the
option of the  Company  payment of interest  may be made by check  mailed to the
address  of the Person  entitled  thereto as such  address  shall  appear in the
Security Register.

      This Security has initially been issued in the form of a Global  Security,
and the Company has  initially  designated  The  Depository  Trust  Company (the
"Depositary,"  which  term  shall  include  any  successor  depositary)  as  the
depositary for this Security. For as long as this Security or any portion hereof
is issued in such form, and notwithstanding the previous paragraph, all payments
of interest,  principal and other amounts in respect of this Security or portion
thereof shall be made to the  Depositary  or its nominee in accordance  with its
Applicable  Procedures,  in the coin or currency  specified above and as further
provided on the reverse hereof.

      Reference is hereby made to the further  provisions  of this  Security set
forth on the reverse  hereof,  which further  provisions  shall for all purposes
have the same effect as if set forth at this place.

      Unless the certificate of  authentication  hereon has been executed by the
Trustee  referred to on the reverse  hereof by manual  signature,  this Security
shall  not be  entitled  to any  benefit  under  the  Indenture  or be  valid or
obligatory for any purpose.

     IN WITNESS  WHEREOF,  Southwestern  Electric  Power Company has caused this
instrument to be duly executed under its corporate seal.

Dated: ___________

                                    SOUTHWESTERN ELECTRIC POWER COMPANY

                                          By __________________
                                             Name:
                                             Title:

                   TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Securities of the series designated therein referred to
in the within mentioned Indenture.

Dated:______________                      THE BANK OF NEW YORK,
                                          A NEW YORK BANKING CORPORATION,
                                          as Trustee

                                          By_____________________
                                             Authorized Signatory

<PAGE>

                      [Form of Reverse of Global Security]

                       SOUTHWESTERN ELECTRIC POWER COMPANY

                         FLOATING RATE NOTES DUE 2002

      This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series  under an  Indenture,  dated as of  February  25,  2000,  as amended  and
supplemented from time to time (herein called the "Indenture",  which term shall
have the meaning assigned to it in such instrument), between the Company and The
Bank of New York, as Trustee  (herein called the "Trustee",  which term includes
any successor trustee under Indenture), as to which Indenture and all indentures
supplemental  thereto reference is hereby made for a statement of the respective
rights,  limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders and of the terms upon which the Securities  are, and
are to be,  authenticated  and  delivered.  This  Security  is one of the series
designated  on the  face  hereof,  limited  in  aggregate  principal  amount  to
$150,000,000.  The provisions of this Security,  together with the provisions of
the Indenture,  shall govern the rights,  obligations,  duties and immunities of
the Holder, the Company and the Trustee with respect to this Security,  provided
that, if any provision of this Security necessarily conflicts with any provision
of the  Indenture,  the provision of this Security  shall be  controlling to the
fullest extent permitted under the Indenture.

      The Securities of this series are subject to redemption upon not less than
30 nor more than 60 days'  notice by mail to the Holders of such  Securities  at
their  addresses in the  Security  Register for such series at the option of the
Company,  in whole or in part, from time to time on any Interest Payment Date on
or after March 1, 2001 at a Redemption  Price,  equal to the principal amount of
the  Securities  of this  series to be  redeemed  plus  interest  accrued to the
Redemption Date (the "Redemption Price").

      If notice has been given as  provided in the  Indenture  and funds for the
redemption of any  Securities  (or any portion  thereof)  called for  redemption
shall  have been made  available  on the  Redemption  Date  referred  to in such
notice,  such Securities (or any portion thereof) will cease to bear interest on
the date fixed for such  redemption  specified in such notice and the only right
of the Holders of such  Securities  will be to receive payment of the Redemption
Price.

      In the event of  redemption  of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.

      The Securities of this series will not be subject to any sinking fund.

      If an Event of Default  with  respect to  Securities  of this series shall
occur and be  continuing,  the principal of the Securities of this series may be
declared  due and  payable in the manner  and with the  effect  provided  in the
Indenture.

      Interest  payments with respect to this Security will be computed and paid
on the basis of a 360-day year for the actual number of days elapsed.

      The Indenture permits,  with certain  exceptions as therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Company  and the rights of the  Holders of the  Securities  of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal  amount of the  Securities  at
the time  Outstanding  of each  series to be affected  (voting as a class).  The
Indenture  also  contains   provisions   permitting  the  Holders  of  specified
percentages  in principal  amount of the  Securities  of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance  by the Company with certain  provisions of the Indenture and certain
past defaults  under the Indenture and their  consequences.  Any such consent or
waiver by the Holder of this Security  shall be conclusive and binding upon such
Holder and upon all future  Holders of this Security and of any Security  issued
upon the  registration  of  transfer  hereof or in  exchange  herefor or in lieu
hereof,  whether  or not  notation  of such  consent or waiver is made upon this
Security.

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

      This Security shall be exchangeable for Securities registered in the names
of Persons other than the Depositary  with respect to such series or its nominee
only as provided in the Indenture. This Security shall be so exchangeable if (x)
the  Depositary  notifies the Company that it is unwilling or unable to continue
as  Depositary  for such  series or at any time  ceases to be a clearing  agency
registered as such under the  Securities  Exchange Act of 1934,  (y) the Company
executes  and delivers to the Trustee an Officers'  Certificate  providing  that
this Security shall be so  exchangeable  or (z) there shall have occurred and be
continuing  an Event of Default with respect to the  Securities  of such series.
Securities so issued in exchange for this  Security  shall be  exchangeable  for
definitive  Securities  in registered  form of the same series,  having the same
interest  rate, if any, and maturity and having the same terms as this Security,
in  authorized  denominations  and in the  aggregate  having the same  principal
amount as this Security and  registered in such names as the Depositary for such
Global Security shall direct.

      As provided in the  Indenture and subject to certain  limitations  therein
set forth,  the transfer of a Security of the Series of which this Security is a
part is  registrable in the Security  Register,  upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place
where the  principal  of and any  premium  and  interest  on this  Security  are
payable, duly endorsed by, or accompanied by a written instrument of transfer in
form  satisfactory  to the Company and the Security  Registrar duly executed by,
the Holder hereof or his attorney duly authorized in writing,  and thereupon one
or  more  new  Securities  of  this  series  and of like  tenor,  of  authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

      The Securities of this series are issuable only in registered form without
coupons  in  denominations  of $1,000  and any  integral  multiple  thereof.  As
provided in the Indenture and subject to certain  limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of  Securities  of this  series  and of like  tenor  of a  different  authorized
denomination, as requested by the Holder surrendering the same.

      No service charge shall be made for any such  registration  of transfer or
exchange,  but the Company may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      Prior to due  presentment of this Security for  registration  of transfer,
the  Company,  the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes,  whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

      For so long as this  Security is issued in the form of a Global  Security,
any  notice to be given to the Holder of this  Security  shall be deemed to have
been duly given to such Holder when given to the Depositary,  or its nominee, in
accordance with its Applicable  Procedures.  Neither the Company nor the Trustee
will have any  responsibility  with respect to those  policies and procedures or
for any notices or other  communications  among the  Depositary,  its direct and
indirect participants and the beneficial owners of this Security in global form.

      If at any time this Security is not represented by a Global Security,  any
notice to be given to the Holder of this  Security  shall be deemed to have been
duly given to such  Holder upon the mailing of such notice to the Holder at such
Holder's  address as it  appears  on the  Security  Register  maintained  by the
Company or its agent as of the close of business  preceding  the day such notice
is given.

      Neither the failure to give any notice nor any defect in any notice  given
to the Holder of this Security or any other  Security of this series will affect
the  sufficiency of any notice given to another Holder of any Securities of this
series.

      Prior to due  presentment of this Security for  registration  of transfer,
the  Company,  the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes,  whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

      The  Indenture  provides  that the  Company,  at its  option,  (a) will be
discharged from any and all obligations in respect of the Securities (except for
certain obligations to register the transfer or exchange of Securities,  replace
stolen, lost or mutilated  Securities,  maintain paying agencies and hold moneys
for payment in trust) or (b) need not comply with certain restrictive  covenants
of the  Indenture,  in each case if the  Company  deposits,  in trust,  with the
Trustee money or U.S. Government Obligations (or Foreign Government Obligations,
if the Securities are  denominated in a foreign  currency or currencies)  which,
through the payment of interest thereon and principal thereof in accordance with
their  terms,  will  provide  money,  in an  amount  sufficient  to pay  all the
principal of, and premium,  if any, and interest,  if any, on the  Securities on
the dates such payments are due in accordance with the terms of such Securities,
and certain other conditions are satisfied.

      No  recourse  shall  be had for the  payment  of the  principal  of or the
interest  on this  Security,  or for any claim based  hereon,  or  otherwise  in
respect  hereof,  or based on or in respect of the  Indenture  or any  indenture
supplemental  thereto,  against any  incorporator,  organizer,  member,  limited
partner, stockholder,  officer or director, as such, past, present or future, of
the  Company or any  successor  Person,  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.

      This Security  shall be governed by and  construed in accordance  with the
laws of the State of New York without  regard to  principles of conflict of laws
except Section 5-1401 of the New York General Obligations Law.

      All terms used in this Security  which are defined in the Indenture  shall
have the meanings assigned to them in the Indenture.EXHIBIT 4(C)
June 27, 2000

                Company Order and Officers' Certificate
                Floating Rate Notes, Series A, due 2001

The Bank of New York, as Trustee
101 Barclay Street
New York, New York 10286
Attention:  Corporate Trust Administration

Ladies and Gentlemen:

Pursuant to Article Two of the Indenture, dated as of January 1, 1998 (as it may
be amended or supplemented,  the  "Indenture"),  from Appalachian  Power Company
(the  "Company")  to The Bank of New York, as trustee (the  "Trustee"),  and the
Board  Resolutions  dated  January 26,  2000,  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  Floating  Rate  Notes,  Series  A, due 2001  (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  correspond  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 or in the
      Notes):

            (i)  the   aggregate   principal   amount  of  Notes  which  may  be
            authenticated  and delivered under the Indenture shall be limited to
            $75,000,000,  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 June 27, 2001 ("Stated Maturity");

            (iii)  interest  on the Notes shall be payable on March 27, June 27,
            September  27 and  December  27 of each  year  (each,  an  "Interest
            Payment  Date"),  commencing  on September 27, 2000 and shall accrue
            from and including the date of  authentication  of the Notes to, but
            excluding  September 27, 2000,  and  thereafter,  from and including
            each Interest  Payment Date to, but excluding,  the next  succeeding
            Interest  Payment Date or Stated  Maturity,  as the case may be; the
            Regular  Record  Date  for  the  determination  of  holders  to whom
            interest is payable on any such  Interest  Payment Date shall be the
            fifteenth calendar day preceding the relevant Interest Payment Date;
            provided that interest  payable on Stated  Maturity shall be paid to
            the Person to whom principal shall be paid;

            (iv) the Notes will bear  interest  at a per annum  rate  ("Interest
            Rate") determined by the Calculation  Agent,  subject to the maximum
            interest rate permitted by New York or other  applicable  state law,
            as  such  law  may be  modified  by  United  States  law of  general
            application.  The  Interest  Rate for each  Interest  Period will be
            equal to LIBOR on the Interest  Determination Date for such Interest
            Period plus .50%; provided,  however,  that in certain circumstances
            described  below,  the  Interest  Rate  will be  determined  without
            reference to LIBOR.

                If  the   following   circumstances   exist   on  any   Interest
            Determination  Date,  the  Calculation  Agent  shall  determine  the
            Interest Rate for the Notes as follows:

                (1) In the event no Reported  Rate appears on Telerate Page 3750
                as of  approximately  11:00  a.m.  London  time  on an  Interest
                Determination  Date,  the  Calculation  Agent shall  request the
                principal  London  offices  of each of four  major  banks in the
                London interbank market selected by the Calculation Agent (after
                consultation  with the  Company) to provide a  quotation  of the
                rate (the "Rate  Quotation")  at which three  month  deposits in
                amounts of not less than  $1,000,000  are offered by it to prime
                banks in the London interbank market, as of approximately  11:00
                a.m. on such Interest Determination Date, that is representative
                of  single  transactions  at  such  time  (the   "Representative
                Amounts").  If at least two Rate  Quotations  are provided,  the
                interest rate will be the arithmetic mean of the Rate Quotations
                obtained by the Calculation Agent, plus .50%.

                (2) In the event no Reported  Rate appears on Telerate Page 3750
                as of  approximately  11:00  a.m.  London  time  on an  Interest
                Determination Date and there are fewer than two Rate Quotations,
                the  interest  rate  will be the  arithmetic  mean of the  rates
                quoted at  approximately  11:00 a.m.  New York City time on such
                Interest  Determination  Date,  by three major banks in New York
                City selected by the Calculation Agent (after  consultation with
                the  Company),  for  loans in  Representative  Amounts  in U. S.
                dollars to leading  European banks,  having an index maturity of
                three  months  for a  period  commencing  on the  second  London
                Business Day immediately  following such Interest  Determination
                Date,  plus .50%;  provided,  however,  that if fewer than three
                banks selected by the Calculation  Agent are quoting such rates,
                the interest rate for the applicable Interest Period will be the
                same  as  the  interest  rate  in  effect  for  the  immediately
                preceding Interest Period.

            (v)   the  Notes  shall  not be  redeemable  prior to
            maturity;

            (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 "Floating  Rate Notes,
            Series A, due 2001";

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

            (ix)  see item (iv) above;

            (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
                  $1,000 and any integral multiple thereof;

            (xv)  not applicable;

            (xvi) the Notes shall not be issued as Discount Securities;

            (xvii)not applicable;

            (xviii)see item (iv) above; and

            (xix) not applicable.

            3. You are hereby  requested to authenticate  $75,000,000  aggregate
      principal amount of Floating Rate Notes,  Series A, due 2001,  executed by
      the Company and delivered to you concurrently  with this Company Order and
      Officers' Certificate, 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 dated June 21, 2000, from
      the Company and the Trustee to DTC.

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

            6.    The  undersigned A. A. Pena and Thomas G.  Berkemeyer,
      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,

APPALACHIAN POWER COMPANY

By:
   ---------------------------
             Treasurer

And:
    --------------------------
        Assistant Secretary

Acknowledged by Trustee:

THE BANK OF NEW YORK

By:
    ---------------------------
      Vice President

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