Allegheny Energy Reports Unplanned Outage at Harrison Power Station

The incident occurred around 5:40 p.m. on Saturday, July 15. Whilethe generating unit was operating normally, the transformer failurecaused the automatic shutdown of Harrison Unit 1.

The Harrison plant has three coal-fired generating units with atotal capacity of 1,972 megawatts. Unit 1 (651 megawatts) is the onlyunit affected. All nine of the company's other supercriticalgenerating units are on line at the present time.

Harrison Unit 1 will remain off line while the company replacesthe transformer with a spare, which is currently at the site, andcompletes related repair work. The company expects to return Unit 1 toservice by mid-August. Allegheny estimates that the unplanned outagewill adversely impact third quarter financial results by $10 - $15million (pre-tax), consisting of lost revenues (net of fuel costsavings) and repair expense.

Allegheny Energy

Headquartered in Greensburg, Pa., Allegheny Energy is aninvestor-owned utility consisting of two major businesses. AlleghenyEnergy Supply owns and operates electric generating facilities, andAllegheny Power delivers low-cost, reliable electric service tocustomers in Pennsylvania, West Virginia, Maryland and Virginia. Formore information, visit our Web site at www.alleghenyenergy.com.

Forward-Looking Statements

In addition to historical information, this release contains anumber of "forward-looking statements" as defined in the PrivateSecurities Litigation Reform Act of 1995. Words such as anticipate,expect, project, intend, plan, believe, and words and terms of similarsubstance used in connection with any discussion of future plans,actions, or events identify forward-looking statements. These includestatements with respect to: regulation and the status of retailgeneration service supply competition in states served by AlleghenyEnergy'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 andprocedures; capital expenditures; status and condition of plants andequipment; regulatory matters; and accounting issues. Forward-lookingstatements involve estimates, expectations and projections and, as aresult, are subject to risks and uncertainties. There can be noassurance that actual results will not materially differ fromexpectations. Actual results have varied materially and unpredictablyfrom past expectations. Factors that could cause actual results todiffer materially include, among others, the following: changes in theprice of power and fuel for electric generation; general economic andbusiness conditions; changes in access to capital markets;complications or other factors that render it difficult or impossibleto obtain necessary lender consents or regulatory authorizations on atimely basis; environmental regulations; the results of regulatoryproceedings, including proceedings related to rates; changes inindustry capacity, development and other activities by AlleghenyEnergy's competitors; changes in the weather and other naturalphenomena; changes in the underlying inputs and assumptions, includingmarket conditions used to estimate the fair values of commoditycontracts; changes in laws and regulations applicable to AlleghenyEnergy, its markets or its activities; the loss of any significantcustomers or suppliers; dependence on other electric transmission andgas 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 accountingstandard-setting bodies; and the continuing effects of globalinstability, terrorism and war. Additional risks and uncertainties areidentified and discussed in Allegheny Energy's reports filed with theSecurities and Exchange Commission.