Allegheny Energy responds to Pennsylvania environmental lawsuit

GREENSBURG, Pa., June 29, 2005 (BUSINESS WIRE) — Allegheny Energy, Inc. reiterated its commitment to improving environmental performance at its power plants while expressing disappointment that the Pennsylvania Department of Environmental Protection (PADEP) felt a need to file a lawsuit challenging the company’s Pennsylvania operations.

“We consider this new action unnecessary, given our pending lawsuit in West Virginia and our plans to reduce the absolute level of emissions at our power plants,” said Paul J. Evanson, Chairman, President and Chief Executive Officer. “We are moving forward as rapidly as our financial condition allows.”

The PADEP filed the lawsuit today in federal court in Western Pennsylvania alleging that Allegheny’s operations at its Armstrong, Hatfield’s Ferry and Mitchell power stations violated federal and state pollution control regulations. Attorneys General from several other states joined in the suit. Allegheny believes that it remains in compliance with those regulations, including any obligations under the U.S. Environmental Protection Agency’s New Source Review requirements. The company initiated litigation back in January in West Virginia federal court seeking a declaratory judgment so as to resolve these issues at both its West Virginia and Pennsylvania power plants.

“With the help of West Virginia’s governor, legislature and various agencies and interest groups, Allegheny is moving forward to securitize the cost of installing scrubbers at its Fort Martin plant,” said Evanson. “We look forward to partnering with the Commonwealth of Pennsylvania to find similar financial solutions to facilitate improvements at our power stations here.”

Allegheny Energy [ www.alleghenyenergy.com ]

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.

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