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Allegheny Power Helping Its Pennsylvania Customers Save Energy and Money

Designed to reach all of Allegheny's 715,000 customers in Pennsylvania, the new Watt Watchers programs target major energy-consuming systems such as heating, air conditioning, appliances, lighting, and manufacturing processes. The new programs are also intended to help meet the goals of Pennsylvania Act 129, which calls for utilities to achieve mandatory reductions in electricity consumption and demand over the next three years.

"Our new Watt Watchers programs can help families and businesses significantly reduce their electric bills," said Rodney Dickens, President of Allegheny Power. "We are committed to giving our customers incentives to buy more energy-efficiency products as well as the latest information about new technologies and energy saving ideas."

Approved by the Pennsylvania Public Utility Commission, the new programs include:

• Rebates for the purchase of high efficiency appliances, lighting, heating and cooling systems;
• Rebates for the recycling of old room air conditioners, refrigerators and freezers;
• Residential home audits and rebates toward implementing audit recommendations;
• Special energy efficiency and weatherization services for low-income customers; and
• Incentives for commercial, industrial and government customers to install efficient lighting, heat pumps, air conditioning systems and other offerings.

The programs are funded through a monthly surcharge tailored to each customer rate schedule. The typical residential customer using 1,000 kilowatts of electricity per month will see an increase of about $2 in their monthly bill. Energy savings from participating in the programs will help offset the charge and allow customers to save much more in future years.

For more information on the programs - including rebate forms, a free home energy analyzer, and tips on using energy wisely - visit the Watt Watchers section of the company's Web site at www.alleghenypower.com and choose "Pennsylvania" as your state. Customers may also call toll-free at (877) 928-8928.

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 the company's 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: 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; 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 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 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; 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.

Allegheny Energy, Inc.
Media contact:
Doug Colafella, 724-838-6387
Manager, External Communications
Media Hotline: 888-233-3583
E-mail: dcolafe@alleghenyenergy.com
or
Investor contact:
Max Kuniansky, 724-838-6895
Executive Director, Investor Relations
and Corporate Communications
E-mail: mkunian@alleghenyenergy.com