Maryland Commission Rules Transmission Line Application Improperly Filed

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GREENSBURG, Pa. & COLUMBUS, Ohio-(Business Wire)-September 10, 2009 - Allegheny Energy (NYSE: AYE) and American Electric Power (NYSE: AEP) today announced that the Maryland Public Service Commission ruled that, procedurally, The Potomac Edison Company, an Allegheny Energy subsidiary, may not seek authorization to construct the Potomac-Appalachian Transmission Highline (PATH) on behalf of its affiliate, PATH Allegheny Transmission Company, LLC.

The Commission ruled it is authorized to issue a certificate only to an “electric company” as defined by Maryland state law. However, the Commission determined that Potomac Edison may re-file the application on its own behalf and asked the company to inform it, within 30 days, of its intention to submit a new application.

The Commission noted in its order that the decision “should not be read to foreshadow any views on the merits of the proposed transmission line project.”

Allegheny Energy and American Electric Power, partners in the joint venture to build the 280-mile multi-state transmission line, remain committed to the PATH project, which is necessary to strengthen the regional transmission grid and resolve reliability concerns of the existing system. Therefore, the companies continue to move forward with approval proceedings in West Virginia and Virginia as options concerning the Maryland segment of the line are considered.

For more information on the project, including maps and full state applications, please visit the project Web site at www.pathtransmission.com.

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

American Electric Power

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio. More information is available at www.aep.com.

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