Allegheny Energy, Inc. Approves Filing for Approval of a Shareholder Rights Plan.

HAGERSTOWN, Md.--(BUSINESS WIRE)--March 3, 1999--Allegheny Energy, Inc.'s (NYSE: AYE) Board of Directors recently authorized submission of a request to the U.S. Securities and Exchange Commission (SEC) for approval of a Shareholder Rights Plan. Allegheny Energy filed a Form U-1 yesterday with the SEC. If approval is received, the Board will consider the adoption of the plan as outlined to the SEC.

The plan is intended to discourage coercive or inadequate takeover bids and other tactics that may be used by hostile bidders to acquire control of a company without paying a full and fair price to all shareholders for their stock.

AYE is a registered public utility holding company which includes three electric utility subsidiaries doing business as Allegheny Power: Monongahela Power Company, The Potomac Edison Company, and West Penn Power Company. AYE subsidiaries annually provide approximately 43 billion kWh of electricity to more than three million people in Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. AYE also owns unregulated subsidiaries, which invest in energy-related and telecommunication projects, including energy marketing activities.