Allegheny Energy turns 1999 successes into 2000 growth, Chairman says.

Business Editors

HAGERSTOWN, Md.--(BUSINESS WIRE)--Feb. 17, 2000

Allegheny Energy, Inc. (NYSE:AYE) achieved record earnings in 1999, scored major successes in deregulated energy markets, and positioned itself for greater growth and increased shareholder value during 2000 and beyond, Alan J. Noia, Allegheny Energy Chairman, President, and Chief Executive Officer, said today at meetings with Wall Street analysts and investors.

&uot;We are coming into our own at one of the most exciting times ever in the rapidly changing energy industry,&uot; Noia said. &uot;We have delivered on our promises for 1999 and are already building on these successes in 2000.&uot;

Allegheny Energy's high-level growth strategy produced record operating earnings of $307.2 million in 1999, while building on a foundation of solid management, low-cost energy production, and nationally recognized customer satisfaction, Noia explained.

&uot;Our strategy is to grow our successful low-cost generating fleet regionally and then nationally, complement that expansion by broadening the reach of our world-class energy delivery business, and add a new dimension of earnings growth through a ventures business that seeks opportunities related to our core business,&uot; he noted.

Noia outlined a number of successes the Company achieved during 1999, including a 13 percent increase in earnings per share, a seven percent increase in net income, and a five percent reduction in production costs. He said Allegheny Energy has its sights set on earnings per share growth in excess of 10 percent per year.

&uot;Through Allegheny Ventures, our new business development arm, we will leverage assets already in place and increase earnings from these unregulated businesses,&uot; Noia said. &uot;Opportunities include continued expansion of fiber optic communications lines throughout the Mid-Atlantic region, an entry into the distributed generation market, and a strategy to maximize use of our real estate holdings. We have made great progress with Allegheny Ventures. We expect this area to contribute 10 percent of our total earnings within the next five years.&uot;

In addition, Allegheny Energy created a non-regulated energy supply company with more than 4,100 megawatts (MW) of generating capacity and plans to add more than 800 MW soon. The Company continues to achieve positive results in the competitive energy marketplace, retaining more than 98 percent of its customers in choice markets while gaining 80,000 new customers through its marketing activities in newly deregulated states including Pennsylvania, New Jersey, and Delaware. This year, the states of Maryland and New York will open to competition, bringing more opportunities to market Allegheny Energy's low-cost generation.

&uot;Through our energy delivery business, we added about 50,000 new customers and a natural gas delivery business in 1999, and we are well on our way to adding another 200,000 customers and an even larger natural gas delivery business through our West Virginia Power and Mountaineer Gas acquisitions,&uot; Noia said. &uot;This is an exciting time for Allegheny Energy. We are playing a significant role in moving this industry from regulation to competition, and there are significant opportunities for us and our shareholders. We have unmatched industry expertise. We have high-quality, low-cost assets. We have a proven track record of superior industry performance. We have a strong brand and the best customer relations. We have clear strategies for each of our businesses to leverage off each other. And the management team and I have a strong commitment to increasing shareholder value.&uot;

In short, Noia said, &uot;It is the perfect time for Allegheny Energy to grow and prosper.&uot;

Allegheny Energy, Inc. is a diversified energy company headquartered in Hagerstown, Md. The Allegheny Energy family includes Allegheny Power, which delivers energy to about three million people in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia; Allegheny Energy Supply Company, LLC, which operates and markets competitive retail and wholesale electric generation and operates regulated electric generation for its affiliates; and Allegheny Ventures, which actively invests in and develops telecommunications and energy-related projects.

For more information, check our web site at www.alleghenyenergy.com.

Certain statements above constitute forward-looking statements with respect to Allegheny Energy, Inc. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of Allegheny Energy to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors may affect Allegheny Energy's operations, markets, products, services, and prices. Such factors include, among others, the following: general and economic and business conditions; industry capacity; changes in technology, changes in political, social, and economic conditions; regulatory matters; integration of the operations of Allegheny Energy; regulatory conditions applicable to the transaction; the loss of any significant customers; and changes in business strategy or business plans.