Allegheny Energy announces proposed transmission line settlement in West Virginia

Greenburg, PA, Jan. 9, 2008 — Trans-Allegheny Interstate Line Co. (TrAILCo), a subsidiary of Allegheny Energy Inc., announced that it has reached agreement with the Consumer Advocate Division of the Public Service Commission of West Virginia on certain issues raised in the company’s application to construct the Trans-Allegheny Interstate Line (TrAIL), a new 500-kilovolt transmission line.

As part of the settlement agreement the parties agree on the following issues:

* The company will make payments on behalf of property owners providing easements for TrAIL to offset an amount equal to an average residential customer’s annual electric bill, subject to certain limitations;

* TrAILCo will perform the minimum amount of clearing required for TrAIL construction and maintenance and will not utilize aerial spraying of herbicides in West Virginia for TrAIL;

* The Consumer Advocate will not contest or dispute the need for the electric transmission line;

* Other than its position on the Grafton Area Route and other specific routing adjustments, the Consumer Advocate agrees and recommends to the Commission that TrAILCo’s proposed route in West Virginia is acceptable.

The agreement requires approval of the Commission to be effective.

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