Allegheny Energy, Inc. Chairman Sees Continued Growth for Company; Noia Address to Regional Utilities Association Describes Strategy in New Era.

Business Editors

CUMBERLAND, Md.--(BUSINESS WIRE)--Sept. 15, 2000

Allegheny Energy, Inc. (NYSE: AYE) is well-positioned as a leader in the new, competitive energy market, according to Alan J. Noia, Chairman, President, and Chief Executive Officer. Noia, a speaker at the Maryland-D.C. Utilities Association's Fall Conference held today, shared his enthusiasm for the Company's future and outlined its strategy for growth.

Noia told the 130 industry executives, government officials, and others attending the conference at the Rocky Gap Resort in Cumberland, Md., that Allegheny Energy's strategy is to continue to grow both its low-cost generating fleet and its regulated energy delivery business. The Company also will see growth from its non-regulated Ventures business, which invests in telecommunications and other projects related to Allegheny's core business, he said.

"The many changes the energy industry has experienced in recent years, from deregulation to consolidation, have created some uncertainty. But, with these changes have come great opportunity. Our strategy of capitalizing on our strengths is allowing us to seize the many opportunities of this new era," Noia said.

Noia also outlined the many trends in the new energy marketplace, maintaining that companies like Allegheny Energy, which consistently outperform their peers in managing change and creating shareholder value, will be the energy companies of the future.

"Our industry is maturing and being `re-invented' almost daily, which means companies like ours must continue to take advantage of new growth options and bring value to our shareholders. Our strategy, over time, is creating a track record of growth that is boosting investors' confidence in our vision," Noia said.

Recent Allegheny Energy highlights include: Completion of the $323 million acquisition of Mountaineer Gas, West Virginia's largest natural gas provider; the transfer of 2,100 MW of jurisdictional generating assets to Allegheny Energy Supply Company, LLC - its non-regulated energy supply affiliate that now has 6,200 MW of low-cost generating capacity to sell in the deregulated marketplace; and the continued expansion of its high-speed fiber optic network by more than 1,000 route miles this year.

Allegheny Energy, Inc. is a diversified energy company headquartered in Hagerstown, Md. The Allegheny Energy family includes Allegheny Energy Supply Company, LLC, which operates and markets competitive retail and wholesale electric generation and operates regulated electric generation for its affiliates; Allegheny Power, which delivers electric energy and natural gas to three million people in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia; and Allegheny Ventures, which actively invests in and develops telecommunications and energy-related projects. For more information, check our web site at www.alleghenyenergy.com.