Bakal and officials from AEP, Cinergy and state and church investment groups spoke with reporters on a conference call Thursday.

Shareholder activists have pushed utilities and other energy companies to disclose more information about financial risks of potential federal and state laws to cut carbon dioxide - the main greenhouse gas linked to global warming - and other emissions.

Shareholder resolutions urging more disclosure last year got the support of the Institutional Investor Services group that offers advice on proxy voting.

A disclosure measure won 27 percent of shareholder votes at AEP, a high level for such a resolution.

Both AEP and Cinergy agreed to shareholders' requests that a committee of independent directors oversee the environmental reports. As a result, shareholders will withdraw resolutions facing the two utilities at their annual meetings this year.

$19 BILLION FUND

AEP said it decided to produce a public report after it reviewed a shareholder proposal from the $19 billion Connecticut Retirement Plans and Trust Funds and Christian Brothers Investment Services, Trillium Asset Management, and pension boards of the Evangelical Lutheran Church in America, United Church of Christ and United Church Foundation.

The utility said it will post its report on its website Sept. 1, 2004

"It wasn't an easy negotiation ... but management and the board have a fiduciary duty to assess and disclose information on our environmental strategies," said Dale Heydlauff, senior vice president of governmental and environmental affairs at AEP.

Cinergy said it agreed to work with an investment committee of the Presbyterian Church to produce its report on action to respond to "rising regulatory, competitive and public pressures related to carbon dioxide and other emissions."

The church has assets of more than $8 billion through a group of mutual funds and pensions. Cinergy said it will report on its agreement with the church in its 2003 annual report and an environmental report.

Shareholder groups are also putting pressure on electric utilities Southern Co. (SO.N: Quote, Profile, Research) and TXU Corp. (TXU.N: Quote, Profile, Research) and oil giant ExxonMobil Corp. (XOM.N: Quote, Profile, Research) to produce environmental risk reports, said Bakal.