Allegheny Energy Supply Chosen as Energy Supplier for Five Ohio Municipalities.

Business Editors

GREENSBURG, Pa.--(BUSINESS WIRE)--Feb. 15, 2001

Allegheny Energy Supply, the unregulated generation subsidiary of Allegheny Energy, Inc. (NYSE: AYE), has been chosen as the electric generation supplier for five municipalities in northeastern Ohio.

With the beginning of Ohio Customer Choice on Jan. 1, the Greensburg, Pa.-based electric generation supplier was chosen to provide electricity through government aggregation programs for residents in the cities of Aurora, Munroe Falls, Parma, Silver Lake, and Stow. Through the Allegheny Energy Supply program, residential customers in these cities will see savings of 17 percent or more off the average shopping credit of their local utilities.

"We are delighted to bring Allegheny Energy Supply's competitive savings and friendly customer service to the residents of Ohio," said Michael A. Dandrea, Director, Sales for Allegheny Energy Supply. "This program is very similar to our successful municipal aggregation program in Pennsylvania, which has saved residential customers more than $9 million since 1999."

Residents of Munroe Falls, Silver Lake, and Stow began receiving service from Allegheny Energy Supply in January, while Aurora and Parma residents will start in February. Residents who were not interested in the offer had the opportunity to opt-out of the program prior to its start-up.

Dandrea noted that the limited-time offer from Allegheny Energy Supply was made possible because of the way restructuring of the electric utility industry was accomplished in Ohio.

"We were able to purchase a block of power that Ohio utilities offered as part of their restructuring settlements," he said. "This special provision allowed us to offer competitive savings to customers with added protection against the volatility of the wholesale electricity market that so many areas of the country are currently experiencing."

In Pennsylvania, 85 municipalities in Allegheny and Beaver counties selected Allegheny Energy Supply in a similar program, which will conclude in May 2001.

Allegheny Energy Supply, an Allegheny Energy Company, operates and markets competitive retail and wholesale electric generation throughout competitive markets in the eastern United States and operates regulated generation for its affiliates. For more information about Allegheny Energy Supply, visit our website at www.alleghenyenergysupply.com.