Allegheny Energy Announces Dividend Plan

GREENSBURG, Pa.--(BUSINESS WIRE)--The Board of Directors of Allegheny Energy, Inc. (NYSE: AYE) has authorized a cash dividend on the company’s common stock. The timing and the amount of such dividend is dependent on whether the pending merger with FirstEnergy Corp. (NYSE: FE) is completed on or before March 14, 2011.

If the proposed merger with FirstEnergy does not become effective on or before March 14, 2011, a dividend of $0.15 per outstanding share of common stock will be payable March 28, 2011 to stockholders of record at the close of business on March 14, 2011.

If the proposed merger with FirstEnergy becomes effective on or before March 14, 2011, a prorated final dividend will be payable 14 days after the effective date of the merger to stockholders of record at the close of business on the business day prior to the merger effective date. The dividend in this instance will be $0.00165 per share per day for the period from and including December 14, 2010 to and including the day preceding the effective date of the merger. Together with a similar dividend plan announced today by FirstEnergy, this would synchronize both companies’ dividends as of the effective date of the merger.

The merger is expected to close in the first half of 2011, subject to customary closing conditions, including regulatory approvals, as outlined in the joint proxy statement/prospectus.

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 1.5 million customers in Pennsylvania, West Virginia and Maryland. For more information, visit our Web site at www.alleghenyenergy.com.

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

In addition to historical information, this news release may contain 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. Forward-looking statements relating to the proposed merger include, but are not limited to: statements about the benefits of the proposed merger involving FirstEnergy and Allegheny Energy, including future financial and operating results; FirstEnergy’s and Allegheny Energy’s plans, objectives, expectations and intentions; the expected timing of completion of the transaction; and other statements relating to the merger that are not historical facts. 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. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements. With respect to the proposed merger, these factors include, but are not limited to: the risk that FirstEnergy or Allegheny Energy may be unable to obtain governmental and regulatory approvals required for the merger, or required governmental and regulatory approvals may delay the merger or result in the imposition of conditions that could reduce the anticipated benefits from the merger or cause the parties to abandon the merger; the risk that a condition to closing of the merger may not be satisfied; the length of time necessary to consummate the proposed merger; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; the diversion of management time on merger-related issues; the effect of future regulatory or legislative actions on the companies; and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect. These risks, as well as other risks associated with the merger, are more fully discussed in the joint proxy statement/prospectus that is included in the Registration Statement on Form S-4 (Registration No. 333-165640) that was filed by FirstEnergy with the SEC in connection with the merger. Additional risks and uncertainties are identified and discussed in FirstEnergy’s and Allegheny Energy’s reports filed with the SEC and available at the SEC’s website at www.sec.gov. Forward-looking statements included in this document speak only as of the date of this document. Neither FirstEnergy nor Allegheny Energy undertakes any obligation to update its forward-looking statements to reflect events or circumstances after the date of this document.