Document:

Exhibit 10(r)(2)

                               Amending Agreement

Paul Addis  (hereinafter  referred to as "Employee") and American Electric Power
Service   Corporation   (hereinafter   referred  to  as  the  "Company")  hereby
voluntarily agree to amend the Employment  Agreement  executed by the parties in
December 1997 as set forth in this Amending Agreement. The Amending Agreement is
entered into this 30 day of July, 1998.

   Whereas, the Company and the Employee previously entered into an
Employment Agreement; and

   Whereas,   the  Employment   Agreement   provided  that  the  Employee  would
participate in certain incentive compensation plans then offered by the Company,
and further  provided  that the  Employee  would be  entitled to a  supplemental
non-qualified retirement benefit; and

   Whereas, the Company has adopted a new compensation package that includes new
incentive   compensation  plans  and  a  revised   supplemental  non-  qualified
retirement  benefit that the Company would like to offer to the Employee in lieu
of the Employees current compensation package; and

   Whereas,  the  Employee  would like to  participate  in the new  compensation
package  offered by the Company,  and the Employee does not have the right under
the Employment Agreement,  or otherwise,  to participate in the new compensation
package offered by the Company:

   Now  Therefore,  in  consideration  for  being  provided  with  the  right to
participate in the new  compensation  package offered by the Company,  is hereby
agreed by the Company and the Employee that Sections  3.02,  5.01(a) and 5.03(a)
of the Employment Agreement shall be amended as set forth below.

(l)   Section 3.02 of the Employment Agreement shall be amended to read as
   follows:

3.02.  In addition to the annual  salary  provided  for in paragraph  3.01,  the
Employee  shall be  eligible to  participate  in the AEP Energy  Services,  Inc.
Annual Incentive Compensation Plan, the Performance Share Incentive Plan and the
Employee shall receive a 2.7% interest in the AEP Energy Services,  Inc. Phantom
Equity Plan. In return for the  Employee's  interest in the AEP Energy  Services
Phantom Equity Plan,  the  Employee's  participation  in the  Performance  Share
Incentive Plan shall be at a twenty (20) percent level.  The Employee's  date of
participation  in each plan shall be as of the first day of the month  following
the  Employee's  Date of Hire.  If the Company  adopts a new or amends a current
incentive  compensation  plan for  employees  who hold the position of Executive
Vice  President,  the  Employee  shall  participate  in the new or amended  plan
subject to the approval of the Chairman.  The Chairman  shall also determine the
Employee's level of participation in said new or amended plan.

(ll)  Section 5.01(a) of the Employment Agreement shall be amended to read as
          follows:

          Section 5.01(a):

(a)   The retirement benefit the Employee would be entitled to receive as of
      the date of the Employee's termination of employment, under the terms
      of the American Electric Power System Retirement Plan, as amended
      from time  to time or any successor thereto ("AEPS Retirement Plan"),
      based upon  the base compensation the Employee received from the
      Company prior to the Employee's termination of employment, including
      earned AEP Energy Services, Inc. Annual Incentive Compensation Plan
      awards up to a maximum of 30% of annual base compensation; assuming
      that as of the date of the Employee's termination of employment the
      Employee's period of accredited service shall be equal to the sum of
      the Employee's actual period of service with Company and an
      additional 18.5 years of accredited service; and if the Employee
      retires prior to age 62 and elects to receive retirement benefits
      prior to age 62, the retirement benefit that the Employee would
      receive at age 62 shall be reduced by one-quarter of a percent for
      each month prior to age 62 that retirement benefits commence as shown
      in the table below:

                                          The Employee will receive this
If retirement benefits are                percentage of the retirement
paid starting at:                         benefit      That would normally be
                                          paid at age 62:
-------------------------------           --------------------------------------
        Age   61                                         97%
              60                                         94%
              59                                         91%
              58                                         88%
              57                                         85%
              56                                         82%
              55                                         79%

(lll)   Section 5.03(a) of the Employment Agreement shall be
     amended to read as follows:

     Section 5.03(a)

(a)   The pre-retirement surviving spouse annuity the Employee's spouse
      would be entitled to receive under the terms of the AEPS Retirement
      Plan, based upon the base compensation the Employee received from
      the Company prior to his death, including the Employee's earned AEP
      Energy  Services, Inc. Annual Incentive Compensation Plan awards up
      to a maximum of 30% of annual base compensation; assuming that as of
      the Employee's date of death the Employee's accredited service is
      equal to the sum of the Employee's actual period of service with the
      Company and an additional 18.5 years of accredited service; and
      applying the benefit reduction factors in Section 5.01(a) if the
      Employee was eligible for early retirement at the time of death.

        /s/Paul D. Addis                              /s/ E. Linn Draper, Jr.
   ---------------------------                  --------------------------------
  Paul D. Addis                                 E. Linn Draper, Jr.
  Executive Vice President                            Chairman of the Board,
  American Electric Power                       President and Chief
  Service Corporation Service                         Executive Officer
                                                American Electric Power
                                                      CorporationExhibit 10(r)(3)

                            AEP ENERGY SERVICES, INC.
                           INCENTIVE COMPENSATION PLAN

                                    Article 1
                  Establishment, Purpose and Effective Date

      1.1   The Company hereby establishes the "AEP Energy Services, Inc.
Incentive Compensation Plan" (the "Plan").

      1.2 The  purposes  of the Plan are to improve  corporate  performance  and
enhance  shareholder  value by providing  Plan  Participants  incentives to earn
annual  incentive  compensation  and to assist  the  Company  in  retaining  and
recruiting key employees.

      1.3   The Plan is effective as of January 1, 1997.

                                    Article 2
                                   Definitions

      2.1 "Administrative Expense Multiple" means the multiple of Total Salaries
necessary to include  employee fringes and benefits and the  administrative  and
general  expenses  associated with those salaries.  The  Compensation  Committee
initially establishes the multiple as 1.75, subject to revision.

      2.2  "Administrative  Expenses"  means the  result  of the  Administrative
Expense Multiple as applied to Total Salaries for the Plan Year.

      2.3   "Annual Bonus Pool" means 15% of the Pretax Operating Income for
the Plan Year.

      2.4   "Company" means American Electric Power Service Corporation, Inc.

      2.5 "Compensation  Committee" means the individuals  holding the following
offices within the Company; Chairman of the Board, President and Chief Executive
Officer;   Executive   Vice   President-Corporate   Services;   Executive   Vice
President-Financial  Services;  Senior Vice President-Human  Resources;  and the
President of AEP Energy  Services,  Inc.,  and any other  senior  officer of the
Company or its Subsidiaries selected by the Compensation Committee.

      2.6 "Direct  Expenses"  means  non-reoccurring  expenses for the Plan Year
that are not part of the  Administrative  Expenses  such as, but not limited to,
moving costs, signing bonuses and cost of working capital.

      2.7  "Employee"  means either  employees of AEP Energy  Services,  Inc. or
employees of the Company,  who are involved in energy trading and other approved
activities for AEP Energy Services, Inc. as traders, managers, support personnel
or  marketers  as well as all other  employees  identified  by the  Compensation
Committee whose efforts are dedicated to energy trading activities.

      2.8  "Gross  Margin"  for the  Plan  Year  means  (I) the net gain or loss
associated  with all sales and purchases of electricity and gas recorded for the
Plan Year on a  mark-to-market  basis  calculated  as of December 31 of the Plan
Year,  and (ii) the net revenue  received or cost incurred  associated  with the
sale and  purchase of options.  For  purposes of this Plan,  net gains or losses
shall be limited to sales and purchases intended to be realized within two years
of the close of the Plan Year.

      2.9  "Incentive  Award"  means the amount of  incentive  compensation,  as
determined by the Compensation Committee,  payable to a Participant for the Plan
Year.

      2.10  "Pretax Operating Income" means Gross Margin for the Plan Year
less Administrative and Direct Expenses for the Plan Year.

      2.11 "Plan Year" means the calendar year commencing  January 1, and ending
December 31.

      2.12 "Total  Salaries"  means the salaries of all Employees as well as all
other  employees  identified  by the  Compensation  Committee  whose efforts are
dedicated  to energy  trading  activities,  including  but not  limited  to risk
control, credit analysis, and legal support.

                                    Article 3
                                Plan Participant

      3.1  Employees  will be  selected  for  participation  in the  Plan by the
President of AEP Energy Services, Inc. on or before the commencement of the Plan
Year.  Individuals  who  become  Employees  after the start of the Plan Year may
become eligible to participate in the Plan at the discretion of the President of
AEP Energy Services,  Inc. The Compensation  Committee may approve or adjust the
selections  made by the  President  and any  action  taken  by the  Compensation
Committee  shall be final.  The  President  of AEP Energy  Services,  Inc.  will
provide   written   notification   to  those   employees  who  are  selected  as
participants.

      3.2 Employees selected to participate in the Plan shall not be eligible to
participate  in  the  American  Electric  Power  System   Management   Incentive
Compensation  Plan,  the American  Electric  Power System Senior  Officer Annual
Incentive Compensation Plan or the Company Wide Incentive Plan.

      3.3  Participation  in the Plan  for a Plan  Year is not a  guarantee  for
Participation in future incentive  compensation plans that may be adopted by the
Company.  Participation  in this Plan does not and is not meant to provide for a
guarantee of continued employment.

                                    Article 4
                             Determination of Awards

      4.1 If the  Annual  Bonus  Pool for the Plan Year is less than or equal to
the amount of the guaranteed bonuses for the Plan Year, Participants in the Plan
shall receive an Incentive Award only to the extent of their guaranteed bonuses.
If the  Annual  Bonus  Pool is less than or equal to the  amount  of  guaranteed
bonuses for the Plan Year,  Participants  in the Plan who do not have guaranteed
bonuses shall not receive an Incentive Award for the Plan Year.

      4.2 After the end of the Plan  Year,  the  Committee,  with the  President
recusing  himself,  shall determine the President's  award. The President of AEP
Energy Services, Inc. shall thereafter make a recommendation to the Compensation
Committee as to the amount of each of the other  Participant's  Incentive  Award
for the Plan  Year.  The  Compensation  Committee  may  approve  or  adjust  any
recommendation  made by the President  and any action taken by the  Compensation
Committee shall be final. A Participant  shall have no right to appeal the final
Incentive Award approved by the Compensation Committee.

                                    Article 5
                           Payment of Incentive Awards

      5.1 Earned  Incentive  Awards shall be paid as soon as possible  after the
end of the Plan Year,  but in no event shall an earned  Incentive  Award be paid
later than four months after the end of the Plan Year.

      5.2 Except for a Participant who retires,  becomes permanently and totally
disabled  or dies,  a  Participant  must be an employee of the Company or of AEP
Energy  Services,  Inc.  on the last day of the Plan  Year to earn an  Incentive
Award.  A  Participant  who transfers  during the Plan Year to another  employer
affiliated with the Company may earn an Incentive Award.

      5.3 All payments  shall be subject to the  applicable  federal,  state and
local  income tax  withholdings  and shall  also be  subject  to the  applicable
payroll tax  withholdings  such as withholding  for Social Security and Medicare
taxes.

                                    Article 6
                                 Administration

      6.1 The Plan shall be  administered  by the  Compensation  Committee.  The
Compensation  Committee  shall have the  authority to interpret  the Plan and to
prescribe,   amend  and   rescind   rules  and   regulations   relating  to  the
administration of the Plan, and all such interpretations,  rules and regulations
shall be conclusive and binding on all Participants.

      6.2 The Compensation Committee may employ agents, attorneys,  accountants,
or other persons and allocate or delegate to them powers, rights, and duties all
as the  Compensation  Committee may consider  necessary or advisable to properly
carry out the administration of the Plan.

                                    Article 7
                                  Miscellaneous

      7.1 The Compensation  Committee shall have the right,  authority and power
to  alter,  amend,  modify,  revoke or  terminate  the  Plan;  provided  that no
amendment or  termination of the Plan shall  adversely  affect the rights of any
Participant with respect to earned but unpaid Incentive Compensation awards.

      7.2 The  Compensation  Committee shall  periodically  review the terms and
conditions  of this  Plan  with the  Human  Resource  Committee  of the Board of
Directors of the American Electric Power Company, Inc.

      7.3 No benefits at any time payable under this Plan to a Participant  or a
Participant's estate shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, attachment, garnishment, levy, execution, or
other legal or equitable process, or encumbrance of any kind.

      7.4  Nothing  in this Plan  shall  interfere  with or limit in any way the
right of the Company to terminate any Participant's  employment at any time, nor
confer upon a Participant any right to continue in the employ of the Company.

      7.5 The Plan shall be construed and administered  according to the laws of
the State of Ohio.

      7.6 In the event the Compensation  Committee shall find that a Participant
is unable to care for his or her  affairs  because of illness or  accident,  the
Compensation  Committee may direct that any payment due the  Participant be paid
to the Participant's duly appointed legal  representative,  and any such payment
so made shall be a complete discharge of the liabilities of the Plan

                                    Article 8
                                Change in Control

      8.1  Notwithstanding  any  provisions of this Plan to the  contrary,  if a
Change in  Control,  as defined in  Section  8.2,  of the  Company  occurs,  all
Incentive Awards shall be deemed to be fully earned as of the date of the Change
in Control.  The determination of the amount of Incentive Awards earned shall be
made as of the last day before  the  Change in  Control.  Cash  payments  of the
Incentive Awards shall be made within three months after the Change in Control.

      8.2 A "Change in Control" of the Company  shall be deemed to have occurred
if (i) any  "person" or "group"  (as such terms are used in  Sections  13(d) and
14(d) of the Securities  Exchange Act of 1934 ("Exchange Act")),  other than any
company owned,  directly or indirectly,  by the  shareholders  of the Company in
substantially the same proportions as their ownership of stock of the Company or
a trustee or other fiduciary  holding  securities under an employee benefit plan
of the Company,  becomes the "beneficial  owner" (as defined in Rule 13d-3 under
the Exchange Act),  directly or indirectly,  of more than 25 percent of the then
outstanding  voting  stock  of  the  Company,  (ii)  during  any  period  of two
consecutive  years,  individuals who at the beginning of such period  constitute
the Board, together with any new Directors (other than a director nominated by a
person  (x) who has  entered  into an  agreement  with the  Company  to effect a
transaction  described  in  Section  8.2(i),  (iii) or (iv) or (y) who  publicly
announces an intention to take or to consider taking actions (including, but not
limited to, an actual or threatened  proxy contest)  which if consummated  would
constitute a Change In Control)  whose  election or nomination  for election was
approved by a vote of at least  two-thirds of the Directors then still in office
who were either  Directors at the  beginning of the period or whose  election or
nomination  for election  was  previously  so approved,  cease for any reason to
constitute  at least a majority  of the Board;  or (iii) the  consummation  of a
merger or  consolidation  of the  Company  with any other  entity,  other than a
merger or  consolidation  which  would  result in the voting  securities  of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining  outstanding  or by being  converted  into  voting  securities  of the
surviving  entity) at least 50 percent of the total voting power  represented by
the voting  securities  of the  Company  or such  surviving  entity  outstanding
immediately after such merger or consolidation;  or (iv) the shareholders of the
Company approve a plan of complete  liquidation of the Company,  or an agreement
for the sale or  disposition  by the Company (in one  transaction or a series of
transactions) of all or substantially all of the Company's assets.

      Notwithstanding the foregoing,  a Change in Control shall not be deemed to
occur as a result of the  consummation of the  transactions  contemplated in the
Agreement  and Plan of  Merger by and among  the  Company,  Augusta  Acquisition
Corporation  and Central  and South West  Corporation  dated as of December  21,
1997,  nor  thereafter  as a  result  of any  event in (i) or  (iii)  above,  if
Directors  who were  members  of the  Board  prior  to such  event  continue  to
constitute majority of the Board after such event.

      For  purposes  of this  Section  8.2,  "Board"  shall  mean  the  Board of
Directors of the  Company,  and  "Director"  shall mean an  individual  who is a
member of the Board.

                                    ADDENDUM

                          AEP ENERGY SERVICES, INC.
                           INCENTIVE COMPENSATION PLAN

                               DEFERRAL OF AWARDS

Introduction:

      This addendum is applicable for just those  Participants who are either in
a  designated  salary  grade  or who  have  been  selected  by the  Compensation
Committee  as being  eligible to elect  deferrals of all or part of an Incentive
Award.

Definitions:

      "Account"  means,  with respect to each  Participant,  a separate  account
established  and  maintained  for the exclusive  purpose of  accounting  for the
incentive compensation deferred by the Participant.

      "Common  Stock" means the common stock,  $6.50 par value,  of the American
Electric Power Company, Inc., a New York corporation, and any successor thereto.

      "Deferred  Distribution  Date" means the date the  Participant  terminates
employment  or  the  date  specified  in  the  Participant's  deferral  election
agreement if a distribution is to be made prior to a  Participant's  termination
of employment.

      "Interest  Bearing  Account"  means memo  account  which is credited  with
annual  interest  equal to 120% of the  applicable  federal  long-term rate with
monthly compounding as published by the Internal Revenue Service in the December
preceding the Plan Year.

      "Market  Value" means the closing price of the Common Stock,  as published
in The Wall  Street  Journal  report of the New York Stock  Exchange - Composite
Transaction  on the date in question or, if the Common Stock shall not have been
traded on such date of if the New York  Stock  Exchange  is closed on such date,
then the first day prior thereto on which the Common Stock was so traded.

      "Participant"  means,  for  purposes of being  eligible to make a deferral
election, an exempt Employee in exempt salary grade 27 or higher, and such other
Employees as designated by the Compensation Committee.

      "Stock  Unit"  means a measure  of value,  expressed  as a share of Common
Stock. No certificates shall be issued with respect to such Stock Units, but the
Company shall  maintain  bookkeeping  Account in the name of the  Participant to
which the Stock Units shall relate.

Deferral Election:

      A  Participant  may elect to defer payment of all or part of the Incentive
Award for one or more  years  with a maximum  deferral  period  that  results in
payment commencing no later than five years after the Participant's  termination
of employment. The deferral election must be filed with the Company on or before
April 15 of the Plan Year for which the deferral is elected.

Deferral Account:

      If a  Participant  elects to defer all or a portion  of the  Participant's
Incentive Award, the Participant may elect to have the deferred amounts invested
in Stock Units or in the Interest Bearing Account.

      If the Participant  elects to invest in Stock Units,  Stock Units shall be
credited  to the  Participant's  Account  effective  the  January 1  immediately
following the  completion of the Plan Year.  The number of whole and  fractional
Stock  Units,   computed  to  three  decimal  places,  to  be  credited  to  the
Participant's Account shall be equal to the dollar amount of the Incentive Award
which  otherwise  would  have been  payable  to the  Participant  divided by the
average of the Market  Value for the last 20 trading  days of the Plan Year.  On
each dividend  payment date with respect to the Common  Stock,  the Account of a
Participant  shall be credited with an additional number of whole and fractional
Stock  Units  equal to the  product  of the  dividend  per share  then  payable,
multiplied by the number of Stock Units then  credited to such Account,  divided
by the Market Value on the dividend  payment date. The number of a Participant's
Stock Units shall be  appropriately  adjusted for any change in the Common Stock
by  reason of any  merger,  reclassification,  consolidation,  recapitalization,
stock dividend, stock split or any similar change affecting the Common Stock.

      If the Participant  elects to invest in the Interest Bearing Account,  the
deferred  portion of the  Incentive  Award shall be deemed to be invested in the
Interest  Bearing Account on the date the Incentive  Awards would have been paid
were it not for the  deferral  election.  The amounts  invested in the  Interest
Bearing  Account  shall  receive  interest  credits  equal to the interest  rate
determined the December before each Plan Year.

Payment of Deferred Awards:

      All deferred  Incentive  Awards shall be paid as a lump sum within 30 days
of the Deferred  Distribution Date. The lump sum amount for Stock Units shall be
the  average of the  Market  Value of the  Common  Stock for the 20  consecutive
trading days through to the Participant's  Deferred  Distribution Date. The lump
sum amount for the  Interest  Bearing  Account  shall be the sum of the  amounts
deferred plus interest credited through the Deferred Distribution Date.

      Upon the death of an active or terminated Participant, all deferred awards
shall be paid to the Participant's surviving spouse as a lump sum within 30 days
after  the  Participant's  date of  death.  If the  Participant  does not have a
surviving spouse, the deferred awards shall be paid to the Participant's  estate
as a lump sum within 30 days after the  Participant's  date of death. The amount
of the  lump sum  cash  distribution  shall be  calculated  as  provided  in the
immediate preceding paragraph.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]