Allegheny Energy, Inc. Makes Progress Toward Y2K Readiness.

HAGERSTOWN, Md.--(BUSINESS WIRE)--March 2, 1999--Allegheny Energy, Inc. (NYSE: AYE) is committed to Y2K readiness and is working toward a smooth and successful transition into the next century. The Company has been actively addressing potential Y2K concerns in various areas of the business for the past several years.

Kenneth M. Jones, Vice President and Chairman of the Y2K Project emphasizes that "Allegheny Energy is very much aware of the critical importance and complexity of the Year 2000 issues, and has made our readiness a top priority.

"We clearly understand our customers' concerns about reliability of our services and operations in the Year 2000, and we recognize our role in working to achieve a successful outcome," he added. "The Company is accomplishing this through the Y2K Corporate Project Team, made up of employees from all areas of the Company, who are coordinating readiness and contingency efforts for our critical systems."

Allegheny Energy has committed both money and manpower to this significant project and plans to spend $15 million to $20 million, with more than 500 employees involved at the project's peak. About $9 million of that amount has already been spent in 1998 on the Y2K initiative.

By June 30, 1999, plans call for all systems that directly affect production or safety to be ready for operation in the Year 2000. While the majority of the assessment and remediation work should be completed by the end of March, testing and additional contingency planning will continue through the Year 2000. Contingency plans will be developed for all critical systems and continually updated throughout the year.

Additional measures include a Y2K drill, scheduled for April, which will enable the Company to further evaluate its readiness. The drill, coordinated by the North American Electric Reliability Council, is primarily a test of the ability of regional utilities to function and communicate effectively under less-than-normal conditions. As an added precaution, Allegheny Energy has already initiated plans for increased staffing in critical areas for New Year's Eve, 1999.

Throughout the remainder of 1999, Allegheny will be working to regularly inform customers, communities, vendors, and business partners of our plans and progress.

Allegheny is also working with various industry groups including industry trade associations and reliability councils - to capitalize on industry-wide experiences and participate in broad industry testing and contingency planning. The North American Electric Reliability Council issues a quarterly report to the Department of Energy on the industry's Y2K status. The latest report, released Jan. 11, 1999, stated, "With more than 44 percent of mission-critical components tested through Nov. 30, 1998, findings continue to indicate that transition through critical Year 2000 (Y2K) rollover dates is expected to have minimal impact on electric system operations in North America."

Headquartered near Hagerstown, Md., Allegheny Energy, Inc., with public utility subsidiaries doing business as Allegheny Power, provides low-cost electric service to approximately three million people in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. For more information about Allegheny Energy, check our web site at www.alleghenypower.com.

This statement is a Year 2000 disclosure pursuant to the "Year 2000 Information and Readiness Disclosure Act"