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FOR IMMEDIATE RELEASE
Allegheny Energy Closes On Acquisition Of Share In
Conemaugh Generating Facility For $78 Million
Hagerstown, MD - January 8, 2001 - Allegheny Energy, Inc.
(NYSE: AYE) today announced that it has finalized the purchase of
83 megawatts (MW) of coal-fired generating capacity in the
Conemaugh Generating Station near Johnstown, Pa. The acquisition
boosts Allegheny Energy's generating capacity in the Pennsylvania-
New Jersey-Maryland (PJM) market to 129 MW and advances the
Company's growth strategy for its generation business.
Allegheny Energy and PPL Corp. (NYSE: PPL) of Allentown,
Pa., closed on an agreement that was announced in May 2000, under
which the two companies jointly acquired 166 MW, or a 9.72
percent share, of Conemaugh's capacity from Potomac Electric
Power Co. (NYSE: POM). The purchase price of $152.5 million, plus
related adjustments, will be shared equally by both PPL and
Allegheny Energy for approximately $78 million each. Allegheny's
share will be accretive to earnings in the first full year and is
being financed with debt.
Alan J. Noia, Chairman, President, and Chief Executive
Officer of Allegheny Energy, said, "We are pleased to add another
83 MW to our generation portfolio with the addition of the
Conemaugh generating facility. Conemaugh is an efficient, low-
cost generating facility and is a great asset for our generating
fleet. With the addition of this facility - along with the recent
joint venture at Hunlock Creek near Wilkes-Barre, Pa. - we are
now poised to more effectively provide capacity and energy to
customers within the growing East Coast markets."
The 83-MW share of Conemaugh is an addition in the PJM
market to 46 MW that Allegheny Energy recently acquired from a
joint venture with UGI Development, a subsidiary of UGI Corp., at
Hunlock Creek in eastern Pennsylvania. The purchase also gives
the Allegheny Energy system a generating capacity of more than
8,700 MW, with another 4,000 MW announced for new construction or
acquisition - for a total generating capacity of nearly
13,000 MW.
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An S&P 500 company, Allegheny Energy, Inc. is a diversified
energy company headquartered in Hagerstown, Md. The Allegheny
Energy family includes Allegheny Power, which delivers electric
energy and natural gas to about three million people in parts of
Maryland, Ohio, Pennsylvania, Virginia, and West Virginia;
Allegheny Energy Supply Company, LLC, which operates and markets
competitive retail and wholesale electric generation and operates
regulated electric generation for its affiliates; and Allegheny
Ventures, which actively invests in and develops
telecommunications and energy-related projects. For more
information, visit our web site at www.alleghenyenergy.com.
Certain statements above constitute forward-looking
statements with respect to Allegheny Energy, Inc. Such forward-
looking statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual
results, performance, or achievements of Allegheny Energy to be
materially different from any future results, performance, or
achievements expressed or implied by such forward-looking
statements. Such factors may affect Allegheny Energy's
operations, markets, products, services, and prices. Such
factors include, among others, the following: general and
economic and business conditions; industry capacity; changes in
technology; changes in political, social, and economic
conditions; regulatory matters; integration of the operations of
Allegheny Energy; regulatory conditions applicable to the
transaction; the loss of any significant customers; and changes
in business strategy or business plans.
Note to Editors: Today's news release, along with other news
about Allegheny Energy, Inc, is available on the Internet at
http://www.alleghenyenergy.com
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