Allegheny Energy invests $120 in reliability improvement projects

Greensburg, Pa., August 21, 2009 — In conjunction with its summer readiness program, Allegheny Energy has targeted $120 million in capital investment in 2008 and 2009 for infrastructure improvement and new construction in Pennsylvania. This infrastructure upgrade includes:

“- $45 million in transmission and distribution investment for installing new service or expanding existing service for customers.

“- $32 million for transmission line and substation projects, excluding the new TrAIL and PATH transmission line projects;

“- $19 million for distribution maintenance and reliability improvement projects; and

“- $14 million for replacing distribution equipment, such as overhead lines, underground cable, meters and utility poles.

Among the more than 35 critical projects completed as part of this work were:

“- Replacing 500-kilovolt (kV) circuit breakers at a substation in Cabot, Butler County, and installing higher capacity transformers at substations near Butler, Export, McConnellsburg, Milesburg, Slippery Rock, State College and Waynesboro.

“- Replacing conductors on a 138-kV transmission line in the Charleroi area and rebuilding a 138-kV transmission line in the New Stanton area.

“- Constructing new distribution circuits or upgrading existing circuits in the Canonsburg, Holbrook, Irwin, Ligonier, Portersville, Slippery Rock, State College and Waynesboro areas. The State College and Waynesboro projects addressed commercial and residential load growth.

“- Installing additional fuses, switches and fault indicating devices on more than 400 distribution circuits throughout the service territory. The devices pinpoint problem areas, helping to restore service quickly.

In addition, Allegheny spent $9 million since mid-2008 for vegetation management activities. Trees contacting power lines and other electric facilities are a major cause of service interruptions, especially during storms and other severe weather.

A member of PJM Interconnection, Allegheny also works with the regional transmission organization to ensure adequate power supplies during the summer months. This year, the company forecasts a peak summer demand of 8,451 MW, based on normal weather conditions, in its four-state service territory. The company’s all-time peak was 8,734 MW, set on August 2, 2006.

Allegheny’s “Watt Watchers” program can help customers control their electricity usage in the summer – and year-round.

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 serves about 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia.