August 21, 2009 09:07 AM Eastern Time 

Reliability Improvement Projects Help Allegheny Prepare for Increased Summer Demand

GREENSBURG, Pa.--(BUSINESS WIRE)--Allegheny Energy, Inc. (NYSE: AYE) works year-round to ensure that reliable electric service continues for customers when demand increases during the summer.

Allegheny’s customers typically consume more electricity in hot weather – due mainly to the use of air conditioners and other cooling appliances. To beat the summer heat, the company engages in a comprehensive readiness program, including: inspection and preventative maintenance of transmission and distribution lines, substations and other electrical equipment; investment in infrastructure improvements; employee training; participation in emergency response drills; and various testing and updating of operations and support systems.

“Our primary responsibility is to ensure that reliable electricity is available at a flip of the switch or push of a button – regardless of whether it’s a cool summer evening or a sweltering August day,” said Rodney Dickens, President of Allegheny Power, the electric delivery business of Allegheny Energy. “To meet that commitment, we are continuously working to monitor, maintain and improve Allegheny’s electric system in order to provide our customers with high quality service.”

In conjunction with the readiness program, Allegheny 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 megawatts, 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. For more information, go to www.alleghenypower.com and click on the Watt Watchers link.

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 approximately 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. In Pennsylvania, Allegheny has more than 710,000 customers and 2,100 employees and serves all or parts of Adams, Allegheny, Armstrong, Bedford, Butler, Cameron, Centre, Clarion, Clearfield, Clinton, Elk, Fayette, Franklin, Fulton, Greene, Indiana, Jefferson, Lycoming, McKean, Potter, Somerset, Washington and Westmoreland counties. Visit the company’s web site at www.alleghenyenergy.com for more information.