Potomac-Appalachian Transmission Highline, LLC Announces Reconfiguration of PATH Project

GREENSBURG, Pa. and COLUMBUS, Ohio, October 17, 2008 - Potomac-Appalachian Transmission Highline, LLC, a joint venture of American Electric Power (NYSE: AEP) and Allegheny Energy (NYSE: AYE), said today that PJM Interconnection announced a reconfiguration of PATH, a proposed high-voltage transmission line project.

PJM, the organization responsible for the transmission grid covering 13 states and the District of Columbia, directed the construction of PATH to ensure the reliability of the region's transmission grid. The original project configuration included a 765-kilovolt (kV) transmission line from the Amos substation near St. Albans, W.Va., to the Bedington substation near Martinsburg, W.Va., and twin-circuit 500-kV lines from Bedington to the proposed Kemptown substation southeast of Frederick, Md.

The reconfiguration is a result of constraints identified as a result of comprehensive siting studies; interaction with government agencies; public input; and a desire to identify a solution that reduces line mileage and minimizes the impact on communities and the environment. The new configuration will:

• Consist of a single 765-kV line from Amos to Kemptown,
• Eliminate the connection with the Bedington substation and the twin-circuit 500-kV lines from Bedington to Kemptown, including many previously evaluated routes in that area, and
• Include a new mid-point substation in the vicinity of eastern Grant County, northern Hardy County, or southern Hampshire County, near existing PATH alternative routes. The substation site has not been determined.
  

Based on the re-configured project, the PATH team is developing new route alternatives between the mid-point substation area and Kemptown. PATH continues to work toward identifying the complete line route and expects to file applications for approval by state regulatory commissions during the first quarter 2009.
Additional open houses will be scheduled in areas where the new alternatives are identified.

PJM recently confirmed that the reconfigured project addresses its reliability concerns.

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.