Allegheny Power Seeks Interim Rate Increase in West Virginia.

GREENSBURG, Pa. -- Allegheny Power, the electric delivery business of Allegheny Energy, Inc. (NYSE: AYE), today submitted a request to the Public Service Commission of West Virginia for an interim rate adjustment of $82 million for the recovery of fuel and purchased power costs. Allegheny has requested that the adjustment be effective October 1, 2009.

Under a cost recovery clause established by the commission in 2007, customer bills are adjusted periodically to reflect upward or downward changes in the cost of fuel and purchased power. Allegheny's un-recovered balance of fuel and purchased power costs has grown steadily, from $6 million at the end of June 2008 to $82 million at the end of June 2009, and is expected to continue to increase, absent the requested rate relief. This un-recovered balance reflects the actual cost of generating electricity, which is greater than the price reflected in current rates. This is adversely affecting the financial condition of Allegheny's Monongahela Power Company subsidiary.

To ease the impact on both the company and its customers, Allegheny is requesting this interim rate increase in advance of its normal annual fuel adjustment filing. The annual filing will occur no later than September 1, 2009, and will encompass projected costs for 2010.

After the proposed interim rate increase, the monthly bill for a typical residential customer using 1,000 kilowatt-hours will be approximately $90, an increase of about $7 compared to current rates. This is below the regional average of $95 and the national average of $112.

The filing was made jointly by Monongahela Power Company and The Potomac Edison Company, both subsidiaries of Allegheny Energy.

To help customers manage their bills, Allegheny offers a budget plan, special payment plans, and access to energy assistance programs. Allegheny Power's Watt Watchers programs also offer information and programs to help its customers manage their electricity bills and use energy more efficiently. For more information and tips on energy efficiency and conservation, visit the company's Web site at www.alleghenypower.com and click on the Watt Watchers section, or call the company's Customer Service Center at 1-800-Allegheny (1-800-255-3443).

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 delivers low-cost, reliable electric service to 1.6 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: rate 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; capacity purchase commitments; and regulatory matters. 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 markets and actions of rating agencies; 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 customer switching behavior and their resulting effects on existing and future load requirements; 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; inflationary and interest rate trends changes in market rules, including changes to PJM participant rules and tariffs; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies and accounting issues facing our organization; 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.