News
Allegheny Energy Seeks Virginia Authorization for New Transmission Line
GREENSBURG, Pa.-(Business Wire)-April 19, 2007 - Allegheny Energy, Inc. (NYSE:AYE) announced today that it has filed an application seeking authorization to build a new 500-kilovolt transmission line in Virginia.
Trans-Allegheny Interstate Line Company, an Allegheny Energy subsidiary, filed with the Virginia State Corporation Commission to build the Virginia segment of the proposed Trans-Allegheny Interstate Line (TrAIL). The application includes the location of the proposed line route. Independent experts concur that without the line, the region could experience blackouts by 2011.
Targeted for completion in 2011, the 210-mile line will span Allegheny's service territory from Southwestern Pennsylvania through West Virginia to Northern Virginia. Within Virginia, the line will run about 28 miles through Frederick and Warren counties adjacent to an existing 500-kilovolt transmission line, reaching an interconnection point with Dominion Virginia Power about a mile and a half south of Interstate 66. Dominion will build the line from that point to its Loudoun substation in Loudoun County.
"We determined our preferred route after careful study, which included the analysis of valuable input we received at public open houses," said David E. Flitman, President Allegheny Power and Trans-Allegheny Interstate Line Company. "We urge you to stay informed, keep an open mind and support a thorough, fair review of our plans by regulators."
As part of its review, the commission is expected to conduct public hearings for interested individuals to speak about the line.
Allegheny is committed to working with landowners, neighboring residents, business owners and regulators to balance all interests in an effort to minimize land-use impacts. About 2,200 individuals attended Allegheny's 12 public open houses, including two in Virginia. The purpose of the sessions was to show potential routes and collect feedback. The company's routing team heard remarks from residents who scanned detailed aerial photography showing homes and other landmarks, and also considered hundreds of written comments to create the best possible route for the line.
Without the line, the stability of the grid and reliable flow of electricity within the PJM region cannot be reasonably assured. This could result in blackouts, rolling blackouts and brownouts within Virginia and other areas of PJM as early as 2011. PJM is the regional grid operator for a 13-state area.
While the line is critical to the ongoing reliability of the grid, there are other benefits as well, including:
— meeting the growing demand for electricity;
— assuring reliable service to support development; and
— increasing west-to-east transfer capability, making cost-effective generation available to more customers.
To learn more about TrAIL and see route maps, visit the project Web site at www.aptrailinfo.com. Allegheny plans to post the line-route application on the site in the near future. The application and other important TrAIL-related information will also be available on the Virginia State Corporation Commission Web site at www.scc.virginia.gov.
Allegheny has filed similar applications to build the line with regulators in Pennsylvania and West Virginia.
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, under the name Allegheny Power, delivers low-cost, reliable electric service to over 1.5 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit our Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this 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. These include statements with respect to: regulation and the status of retail generation service supply competition in states served by Allegheny Energy's delivery business, Allegheny Power; the closing of various agreements; financing plans; demand for energy and the cost and availability of raw materials, including coal; provider-of-last-resort ("PLR") and power supply contracts; results of litigation; results of operations; internal controls and procedures; capital expenditures; status and condition of plants and equipment; capacity purchase commitments; regulatory matters; and accounting issues. 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. Actual results have varied materially and unpredictably from past expectations. Factors that could cause actual results to differ materially include, among others, the following: plant performance and unplanned outages; changes in the price of power and fuel for electric generation; general economic and business conditions; changes in access to capital; complications or other factors that render it difficult or impossible to obtain necessary lender consents or regulatory authorizations on a timely basis; environmental regulations; the results of regulatory proceedings, including proceedings related to rates; changes in industry capacity, development and other activities by Allegheny Energy's competitors; changes in the weather and other natural phenomena; changes in the underlying inputs and assumptions, including market conditions used to estimate the fair values of commodity contracts; changes in customer switching behavior and their resulting effects on existing and future PLR load requirements; changes in laws and regulations applicable to Allegheny Energy, its markets or its activities; the loss of any significant customers or suppliers; dependence on other electric transmission and gas transportation systems and their constraints or availability; changes in PJM, including changes to participants rules and tariffs; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; and the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energy's reports and registration statements filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. Allegheny Energy undertakes no obligation to update its forward-looking statements to reflect events or circumstances after the date of this document.
