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American Electric Power Selects Proxix Solutions' Site-US Tax

American Electric Power Selects Proxix Solutions' Site-US Tax

PALM HARBOR, FL -- (MARKET WIRE) -- 06/12/07 -- Proxix Solutions, a leading location intelligence company, today announced that American Electric Power, one of the largest electric utilities in the U.S., has chosen its Site-US Tax solution to determine the actual location of the service address for accurate tax billing.

Most utilities are responsible for taxing a customer's service address, but oftentimes a customer's postal address fails to define the correct tax jurisdiction. For example, a state that does not charge a sales tax on utilities may contain cities and counties that independently charge a specific industry tax. ZIP Codes fail to accurately describe these legal boundaries in many instances. While the inaccurately assigned taxes may be only a few cents on an individual bill, many bills over many months can lead to possible regulatory compliance and customer service issues.

Site-US Tax was selected to ensure that customers are accurately assessed taxes based on the service location's assigned tax jurisdiction.

Property tax assessment is another way American Electric Power uses Site-US Tax. The utility industry has mass property, including wires and poles that pass through multiple taxing jurisdictions. Customer location is one of the ways used to allocate mass property tax so that each governmental entity and school district gets a fair allocation of value.

"Location intelligence is vital for good customer relations and corporate policy practices. Having the correct location of a service address allows proper tax application for local sales tax and industry-specific taxation of the services minimizing customer billing errors and possible audit fines," stated Dan Lawson, director of tax, Proxix Solutions. "This also applies to property tax. Even assets that lack mailing addresses can now be easily reported to all the proper tax jurisdictions."

Site-US Tax is a location intelligence solution that utilizes high-precision spatial analytics and accurate tax jurisdiction boundary data to identify the proper taxing jurisdiction. This methodology is far more accurate than other solutions using postal information, such as ZIP Codes or ZIP +4. With Site-US Tax, AEP can improve overall billing processes and customer service, and reduce regulatory liabilities.

About Proxix Solutions

Proxix Solutions develops location intelligence products and enterprise solutions to provide businesses actionable information for decision support to make smarter decisions, understand and mitigate risks, cultivate profitable customer relationships and increase market penetration. Proxix Solutions, a privately held company, was founded in 2003. Proxix's management team was responsible for developing many geospatial industry firsts, including the first national address geocoder. Proxix is headquartered in Palm Harbor, FL with offices in Boulder, CO and Madison, WI. For more information on Proxix visit www.proxix.com.

About American Electric Power

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.

For more information contact:

Lynn Bates
Tel: 727.781.2662, ext. 313
Email: Email Contact

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