Allegheny Power Comments on Ohio Commission Order.

GREENSBURG, Pa. -- Allegheny Power, the delivery business of Allegheny Energy (NYSE:AYE), welcomed today's Public Utilities Commission of Ohio (PUCO) order designed to help resolve the ongoing issue of Ohio's transition to market-based rates beginning in 2006.

In the order issued today, the PUCO voiced its support for a rate stabilization plan and directed Allegheny Power's Monongahela Power Company and American Electric Power's Columbus Southern Power Company to discuss the transfer of Monongahela's Ohio service territory to Columbus Southern.

"We appreciate the commission's attempt to find a creative solution to a difficult problem," said Joseph H. Richardson, President of Allegheny Power. "While we would prefer to retain our Ohio business and implement market-based rates next year, we are willing to explore the options outlined in the order as a means of resolving this issue and bringing rate clarity to our 29,000 Ohio customers."

Market-based rates are scheduled to go into effect on January 1, 2006 for all Allegheny Power Ohio customers as a result of the restructuring of the electric industry under the Ohio Electric Choice Act.

Today's order directs the utilities to report back to the commission on their discussions within 14 days.

Allegheny Energy

Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned utility consisting of two major businesses. Allegheny Energy Supply owns and operates electric generating facilities, and Allegheny Power delivers low-cost, reliable electric service to customers in Pennsylvania, West Virginia, Maryland, Virginia and Ohio. For more information, visit our Web site 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 distribution business, Allegheny Power; financing plans; demand for energy and the cost and availability of raw materials, including coal; provider-of-last-resort and power supply contracts; results of litigation; results of operations; internal controls and procedures; capital expenditures; status and condition of plants and equipment; 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: changes in the price of power and fuel for electric generation; general economic and business conditions; changes in access to capital markets; 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 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 participant rules and tariffs; the effect of accounting policies 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 filed with the Securities and Exchange Commission.