Allegheny Energy Announces Change to Board of Directors.

Energy Editors/Business Editors

HAGERSTOWN, MD.--(BUSINESS WIRE)--Feb. 5, 2004

Allegheny Energy, Inc. (NYSE: AYE) announced that Frank A. Metz, Jr., 70, a member of the Board of Directors since 1984, has announced his retirement, effective today. Michael H. Sutton was appointed by the Board of Directors to fill the term of Mr. Metz, which is to expire in 2005.

Mr. Metz is a former Senior Vice President and Director of International Business Machines Corporation. He has also served as a Director of Monsanto Company and Norrell Corporation and currently serves as a Director of Solutia, Inc.

"I would like to thank Frank for his dedicated leadership and service to our Company as a director over the last 20 years. Both the Board of Directors and Allegheny Energy appreciate his many contributions and guidance. I wish him the best in his retirement," said Paul J. Evanson, Chairman and CEO of Allegheny Energy.

Mr. Sutton was Chief Accountant of the Securities and Exchange Commission (SEC) from 1995 to 1998, serving as the principal advisor to the commission on accounting and auditing matters with responsibility for formulating commission policy on financial accounting and reporting by public companies. Previously, he was National Director, Accounting and Auditing Professional Practice, of Deloitte & Touche and a senior partner in the firm.

Presently, Mr. Sutton is an independent consultant concentrating on accounting and auditing regulation and related professional issues. He has lectured at the Graduate School of Business of the College of William & Mary, and, in 2003, he was elected to the Board of Trustees of the MainStay Funds.

"I am delighted to welcome Mike Sutton to Allegheny's Board. With his broad experience in regulatory and corporate financial matters, including his tenure at the SEC, he is the perfect candidate to provide us with strong independent guidance in facing Allegheny's many challenges," Mr. Evanson said.

Allegheny Energy is an integrated energy company with a portfolio of businesses, including Allegheny Energy Supply, which owns and operates electric generating facilities, and Allegheny Power, which delivers low-cost, reliable electric and natural gas service to about four million people in Pennsylvania, West Virginia, Maryland, Virginia and Ohio. More information about the Company is available at www.alleghenyenergy.com.

Forward-Looking Statements 

In addition to historical information, this release contains a number of "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Words such as anticipate, expect, project, intend, plan, believe, and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These include statements with respect to: regulation and the status of retail generation service supply competition in states served by Allegheny Energy's delivery business, Allegheny Power; the closing of various agreements; execution of restructuring activity and liquidity enhancement plans; results of litigation; financing requirements and plans to meet those requirements; demand for energy and the cost and availability of inputs; demand for products and services; capacity purchase commitments; results of operations; capital expenditures; regulatory matters; internal controls and procedures and outstanding financial reporting obligations; and stockholder rights plans. Forward-looking statements involve estimates, expectations, and projections and, as a result, are subject to risks and uncertainties. There can be no assurance that actual results will not materially differ from expectations. Actual results have varied materially and unpredictably from past expectations. Factors that could cause actual results to differ materially include, among others, the following: execution of restructuring activity and liquidity enhancement plans; complications or other factors that render it difficult or impossible to obtain necessary lender consents or regulatory authorizations on a timely basis; general economic and business conditions; changes in access to capital markets; the continuing effects of global instability, terrorism, and war; changes in industry capacity, development, and other activities by Allegheny's competitors; changes in the weather and other natural phenomena; changes in technology; changes in the price of power and fuel for electric generation; the results of regulatory proceedings, including those related to rates; changes in the underlying inputs, including market conditions, and assumptions used to estimate the fair values of commodity contracts; changes in laws and regulations applicable to Allegheny, its markets, or its activities; environmental regulations; the loss of any significant customers and suppliers; the effect of accounting policies issued periodically by accounting standard-setting bodies; additional collateral calls; and changes in business strategy, operations, or development plans. Additional risks and uncertainties are identified and discussed in Allegheny Energy's reports and registration statements filed with the Securities and Exchange Commission.