Allegheny Energy Seeks Pennsylvania Authorization for New Transmission Lines.

Lines are Critical to Ensuring Reliable Electric Service in Southwestern Pa.

GREENSBURG, Pa. -- Allegheny Energy, Inc. (NYSE:AYE) announced today that it has filed an application seeking authorization to build new transmission lines to ensure reliability of the electric grid in Southwestern Pennsylvania. The lines are required to serve local need in Washington and Greene counties.

Trans-Allegheny Interstate Line Company, an Allegheny Energy subsidiary, filed an application with the Pennsylvania Public Utility Commission, proposing the construction of a new 500-kilovolt and three 138-kilovolt lines.

Independent experts have determined that growth from the expanding Pittsburgh suburbs and accompanying commercial development has strained the system. They agree that if the lines are not built, area residents and businesses will experience reliability problems that could result in blackouts or brownouts in several years. The new transmission lines have planned in-service dates ranging from 2009 to mid-2010.

"This project is key to our mission of providing Southwestern Pennsylvania with reliable electric service while meeting growing demand," said David E. Flitman, President Allegheny Power and Trans-Allegheny Interstate Line Company. "The new lines will ensure the continued viability of the local grid, keeping the lights on for years to come."

There are other benefits as well, including:

* assuring reliable service necessary to attract industry and support development;

* expanding markets for local coal; and

* potential for new generation projects, including clean-coal technologies.

"We determined our proposed route after careful study, which included the analysis of valuable input we received at public open houses," Flitman said. "We urge you to stay informed, keep an open mind and support a thorough, fair review of our plans by the regulators."

As part of its review, the commission is expected to conduct public hearings for interested individuals to speak about the line.

The proposed route for the 500-kilovolt line starts about a mile north of the Pennsylvania/West Virginia state line near Mt. Morris, and runs 36 miles north to North Strabane Township, several miles east of Washington, Pa. and north of Interstate 70. The 500-kilovolt line and connected 138-kilovolt lines will be built primarily on company-owned right-of-way.

The proposed transmission lines in Pennsylvania are part of the Trans-Allegheny Interstate Line (TrAIL) project. TrAIL also includes a second 500-kilovolt line necessary for regional reliability, which will span Allegheny's service territory from a new substation near Mt. Morris, then across West Virginia to Northern Virginia.

Allegheny is committed to working with landowners, neighboring residents, business owners and regulators to balance all interests in an effort to minimize land-use impacts. About 2,200 individuals attended Allegheny's 12 public open houses. The purpose of the sessions was to show potential routes and collect feedback. The company's routing team heard remarks from residents who scanned detailed aerial photography showing homes and other landmarks, and also considered hundreds of written comments to create the best possible route for the line.

To learn more about TrAIL and see route maps, visit the project Web site at www.aptrailinfo.com. Allegheny plans to post the line-route application on the site in the near future. The application and other important TrAIL-related information will also be available on the Pennsylvania Public Utilities Commission Web site at www.puc.state.pa.us.

Copies of the application have been delivered to the following public libraries for review by the public:

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Allegheny Energy

Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned electric utility with total annual revenues of over $3 billion and more than 4,000 employees. The company owns and operates generating facilities and, under the name Allegheny Power, delivers low-cost, reliable electric service to over 1.5 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit our Web site at www.alleghenyenergy.com.

Forward-Looking Statements 

In addition to historical information, this release may contain 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; financing plans; demand for energy and the cost and availability of raw materials, including coal; provider-of-last-resort ("PLR") and power supply contracts; results of litigation; results of operations; internal controls and procedures; capital expenditures; status and condition of plants and equipment; capacity purchase commitments; regulatory matters; and accounting issues. 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: plant performance and unplanned outages; changes in the price of power and fuel for electric generation; general economic and business conditions; changes in access to capital; complications or other factors that render it difficult or impossible to obtain necessary lender consents or regulatory authorizations on a timely basis; environmental regulations; the results of regulatory proceedings, including proceedings related to rates; changes in industry capacity, development and other activities by Allegheny Energy's competitors; changes in the weather and other natural phenomena; changes in the underlying inputs and assumptions, including market conditions used to estimate the fair values of commodity contracts; changes in customer switching behavior and their resulting effects on existing and future PLR load requirements; changes in laws and regulations applicable to Allegheny Energy, its markets or its activities; the loss of any significant customers or suppliers; dependence on other electric transmission and gas transportation systems and their constraints or availability; changes in PJM, including changes to participants rules and tariffs; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; and the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energy's reports and registration statements filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. Allegheny Energy undertakes no obligation to update its forward-looking statements to reflect events or circumstances after the date of this document.