Allegheny Energy Files Proposal on Pennsylvania Transmission Project

Allegheny Energy, Inc. (NYSE:AYE) announced today that its Trans-Allegheny Interstate Line Company (TrAILCo) subsidiary filed a motion with the Pennsylvania Public Utility Commission to defer any decision on a portion of its proposed transmission line project, the Trans-Allegheny Interstate Line.

The request will allow the company to pursue a more collaborative process to explore whether there are new and creative alternatives to the proposed 36-mile portion of the 500 kilovolt line in Greene and Washington counties and related facilities.

The companys motion also requests that the Commission timely approve a 1.2 mile section of 500 kilovolt line extending from the West Virginia border to a new substation in Greene County, Pennsylvania known as 502 Junction. This portion of the project addresses critical reliability concerns that could adversely impact the mid-Atlantic region, including Pennsylvania electric customers, as early as 2011.

The motion is intended to be considered in conjunction with exceptions filed today by TrAILCo in response to two Administrative Law Judges recent recommendation that the companys application be denied in Pennsylvania. In its exceptions, TrAILCo also explicitly asks the Commission to reverse the recommended decision of the Judges and approve the 1.2 mile segment between the West Virginia state line and 502 Junction.

Allegheny Energy

Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned electric utility with total annual revenues of over $3 billion and more than 4,000 employees. The company owns and operates generating facilities and delivers low-cost, reliable electric service to approximately 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit our Web site at www.alleghenyenergy.com.

Contacts:

Allegheny Energy, Inc.
Media contact:
Doug Colafella, Manager, External Communications
Phone: 724-838-6387
Media Hotline: 1-888-233-3583
E-mail: dcolafe@alleghenyenergy.com
or
Investor contact:
Max Kuniansky, Executive Director, Investor Relations
and Corporate Communications
Phone: 724-838-6895
E-mail: mkunian@alleghenyenergy.com

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