Allegheny Energy, Inc. Names Presidents of its Ventures, Delivery, and Supply Businesses.

HAGERSTOWN, Md.--(BUSINESS WIRE)--July 15, 1999--

Allegheny Energy, Inc. (NYSE: AYE) today announced the appointment of three presidents to run its principal businesses.

Paul M. Barbas has joined the Company as President of AYP Capital, Inc., the Company's wholly owned ventures subsidiary. In addition, Mr. Barbas was named a Vice President of Allegheny Energy, Inc. and of Allegheny Energy Service Corporation. He will report to Alan J. Noia, Chairman, President, and Chief Executive Officer of Allegheny Energy, Inc.

Mr. Barbas will lead the Company's efforts to expand its telecommunications opportunities within its exempt telecommunication subsidiary, Allegheny Communications Connect, Inc.; to manage and grow its energy service subsidiary, Allegheny Energy Solutions; and to identify and evaluate new unregulated opportunities.

Mr. Barbas brings to Allegheny Energy 17 years of experience working for General Electric Company, where he held several executive-level positions, including President, GE Capital Rental Services; President, GE Capital Computer Rental Services; National Operations Manager, GE Rental/Lease; Manager, Southeast Region, GE Rental Lease; and Manager, Financial Planning & Analysis, GE Rental/Lease.

A native of Pittsfield, Mass., Mr. Barbas is a graduate of the College of the Holy Cross in Worcester, Mass., where he earned a bachelor of arts degree in economics. In addition, he holds a master of business administration degree, concentrating in finance and marketing, from the University of Massachusetts. He and his wife, Jan, have four children and will be relocating to the Hagerstown, Md., area.

The Company also announced the appointment of Jay S. Pifer as President of its electricity delivery business, Allegheny Power. Mr. Pifer will continue to report to Alan J. Noia, Chairman, President, and Chief Executive Officer of Allegheny Energy, Inc.

Mr. Pifer will lead and grow Allegheny's electric utility delivery operations, including Customer Operations, System Planning and Operations, and Customer Affairs. The Company's delivery operations involve 2,800 employees and serve three million people in Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. In addition to leading this business, Mr. Pifer will identify new opportunities to expand the Company's delivery business.

Mr. Pifer, a 34-year veteran with the Company, also serves as Senior Vice President of Allegheny Energy, Inc. and of Allegheny Energy Service Corporation and as a Director and President of various Allegheny Energy subsidiaries.

Well-known for his many civic and community activities, Mr. Pifer serves as Director, Northeast Region, Boy Scouts of America; board member, past President, and recipient of the Silver Beaver Award, Westmoreland-Fayette Council, Boy Scouts of America; Director, Pittsburgh Regional Alliance; Director, West Virginia Educational Alliance; Director, Western Pennsylvania Conservancy; Director, Westmoreland Trust; Director and past Chairman, Pennsylvania Electric Association; and Director, Ohio Electric Utilities Institute. In addition, Mr. Pifer is a member of the Allegheny Conference and the Pittsburgh Chamber of Commerce.

Mr. Pifer has also served on the boards of numerous organizations, including Waynesburg College, Penn State University Advisory Board, University of Pittsburgh-Greensburg, and the United Way. In addition, he recently served as co-chair of the capital campaign for the Westmoreland Museum of American Art and honorary chair of the 1998 Annual Human Rights Banquet of the NAACP's Greensburg-Jeannette Branch.

A Ridgway, Pa., native, Mr. Pifer is a graduate of Penn State University and Clarion State University. He received Penn State University's Outstanding Engineering Alumni Award and was guest lecturer for the university's Shoemaker Lecture Series. An ordained Lay Pastor in the United Methodist Church, Mr. Pifer and his wife, Betty, reside in the Greensburg, Pa., area and have three children and three grandchildren.

The Company also announced the appointment of Peter J. Skrgic as President of the Company's electric energy supply business, Allegheny Energy Supply. Mr. Skrgic will also continue to report to Alan J. Noia, Chairman, President, and Chief Executive Officer of Allegheny Energy, Inc.

Mr. Skrgic will direct and continue the growth of Allegheny's electric energy supply business, which operates and markets competitive retail and wholesale electric generation throughout competitive markets in the eastern United States and also operates regulated generation for its affiliates. In addition, he will identify new opportunities to expand the Company's generation holdings. The Company's electric energy supply business includes 1,500 employees.

Mr. Skrgic, a 35-year veteran with the Company, also serves as Senior Vice President of Allegheny Energy, Inc. and of Allegheny Energy Service Corporation and as a Director and Vice President of various Allegheny Energy subsidiaries.

He also has a variety of community and industry affiliations, including the Engineering Society of Western Pennsylvania; the Board of Directors of the Association for the Development of Inland Navigation in America's Ohio Valley; a member of two Edison Electric Institute Committees; a member and past Chairman of the East Central Area Reliability Council Executive Board; a past member of the Board of Trustees of the North American Reliability Council; a member of the Steering Committee of the Utility Air Regulatory Group; a member of the Board of Directors for the Center for Energy and Economic Development; a member and past Chairman of the Engineering and Operating Executive Committee of the Southeastern Electric Exchange; member of the Research Advisory Committee of the Electric Power Research Institute; and past President of the Tri-State Construction Users Council.

In addition, Mr. Skrgic serves as a member of the Board of Directors of the Ohio Valley Electric Corporation and the Indiana-Kentucky Electric Corporation.

A Jeannette, Pa., native, Mr. Skrgic is a graduate of the University of Pittsburgh, where he earned a bachelor's degree in mechanical engineering. He and his wife, Nadine, reside in Greensburg, Pa., and have three children and two grandchildren.

Allegheny Energy, Inc. is a diversified energy company headquartered in Hagerstown, Md. The Allegheny Energy family includes Allegheny Power, which delivers electric energy to about three million people in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia; Allegheny Energy Supply, which operates and markets competitive retail and wholesale electric generation and operates regulated electric generation for its affiliates; and AYP Capital, Inc., which actively invests in and develops energy-related and telecommunications projects. Additional information about the Company is available on the Internet at www.alleghenyenergy.com.

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