EXHIBIT H
a) Draft Notice
Allegheny Energy, Inc., et. al. (70-9483)
Notice Requesting Authority to Form a Special Purpose Entity
Engage in Rule 58 Activities
Allegheny Energy, Inc. ("Allegheny"), a registered
public utility holding company, and its direct and indirect wholly
owned subsidiaries Allegheny Ventures, Inc., and Allegheny Energy
Service Corporation, all located at 10435 Downsville Pike,
Hagerstown, MD 21740-1766 have filed a Post Effective Amendment to
an Application - Declaration pursuant to Sections 6(a), 7, 9(a),
10, 12(a)&(b), and 13, of the Act and Rules 45, 53, 54, and 58
under the Act.
The deregulation of generation and introduction of
competition is now a market reality in Pennsylvania; is coming to
Maryland on July 1, 2000; and to Ohio, Virginia and West Virginia
over the course of the next two years. In the face of
deregulation Allegheny has: formed a generating company - Genco;<F9>
acquired West Virginia Power;<F10> moved to acquire Mountaineer
Gas;<F11> and moved to transfer The Potomac Edison Company's ("Potomac
Edison") generating assets to Allegheny Energy Supply Company,
LLC.<F12> To remain competitive Allegheny must have the flexibility
to develop and offer a diverse mix of energy and energy related
services in order to grow and continue to serve the current and
emerging energy and energy related needs of customers within
Allegheny Power's<F13> traditional service territories and to develop
and serve the needs of customers outside the traditional service
territories as opportunities arise.
Now comes Allegheny Energy, Inc. ("Allegheny") seeking
authority to: (a) organize and invest up to $25 million in a to-be-
formed special purpose subsidiary - Allegheny Advantages; (b)
permit Allegheny Advantages to engage in Rule 58 activities: and
(c) permit Allegheny and Allegheny Advantages to, directly or
indirectly through other to-be-formed subsidiaries, make multiple
de minimis investments in certain core and non-core activities in
an aggregate amount not to exceed $35 million. Total combined
investment in Allegheny Advantages and the other to-be-formed
subsidiaries will not exceed $60 million.
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<F9> Holding Co. Act Release No. 27101 (November 12, 1999).
<F10> See Holding Co. Act Release No. 27121, Order Authorizing
Retention of Assets (December 23, 1999).
<F11> See File No. 70-9625, Application of Monongahela Power Company
to Acquire 100% of the Securities of Mountaineer Gas (filed Feb.
4, 2000).
<F12> See File No. 70-9627, Application of The Potomac Edison Company
to Transfer Assets (filed Feb. 11, 2000).
<F13> Potomac Edison, along with West Penn Power Company and Monongahela
Power Company collectively d/b/a Allegheny Power deliver electric
and gas energy to about 1.4 million customers in parts of Maryland,
Ohio, Pennsylvania, Virginia, and West Virginia.
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