Allegheny Energy Supply Company, LLC, formed in 1999, is a non-regulated energy company that actively markets competitive wholesale electricity throughout the eastern United States and retail electricity in states where customer choice is being implemented.

Allegheny Energy Supply owns 4,142 megawatts (MW) of electric generating capacity.

About 1,300 MW of additional generation will be deregulated and transferred to Allegheny Energy Supply during 2000, when Maryland opens its doors to customer choice, and additional generation will be transferred as our other states move to choice.

The supply company will also grow through the construction of new generating facilities. It added 88 MW in 1999 and has plans to add more than 800 MW soon.

Allegheny Energy Supply also manages electric generation for its regulated affiliates.

 

 

STRATEGY

Allegheny Energy Supply will grow through:

• capitalizing on the market advantages afforded by the efficient, low-cost generating assets it currently owns;

• transferring additional generation owned by its regulated affiliates to the Company to sell in new markets;

• adding additional generation through construction and acquisition; and

• aggressively marketing and selling energy at wholesale or retail beyond traditional service areas.

FUTURE OUTLOOK

For 2000 and beyond, Allegheny Energy Supply intends to increase earnings from the sale of energy into established and new markets and to continue to add generating assets to its growing portfolio. Allegheny Energy Supply is expanding regionally into new, competitive supply markets, while continuing to focus on its long-term strategy of becoming a successful national energy supplier.
           
         
           
       

Allegheny Power is the energy delivery business of Allegheny Energy, providing electric transmission and distribution services in Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. In 1999, Allegheny Power increased its presence in West Virginia and entered the natural gas delivery business through the acquisition of West Virginia Power and proposed purchase of Mountaineer Gas Company.

The mission of Allegheny Power is to be a full-service energy delivery business, both within and beyond its traditional service area. The vision of Allegheny Power is to achieve long-term growth and profitability by viewing customer relationships as its most valuable asset.

 

 

STRATEGY

Allegheny Power’s five-year business plan is built around these fundamental strategies for growth:

• achieve operational excellence by managing costs and improving operating efficiency and

• continue to expand the business in areas or states that are contiguous with or close to the Company’s franchised territory.

FUTURE OUTLOOK

Allegheny Power will continue to actively pursue growth opportunities both inside and outside its traditional service area. Its entry into the natural gas business will enable it to grow and diversify its customer base.
           
         
           
       

Allegheny Ventures is the Company’s expanding new business development company that invests in and develops unregulated telecommunications and energy-related projects through its subsidiaries, Allegheny Communications Connect (ACC) and Allegheny Energy Solutions. Allegheny Energy Solutions is entering the distributed generation market for business customers.

ACC delivers telecommunications services over an advanced fiber optic network to retail customers throughout the Mid-Atlantic region. It delivered positive net income in 1999. By year’s end, ACC had more than 600 fiber optic route miles in place, with commitments to build 1,000 additional route miles in 2000.

 

STRATEGY

The primary goal of Allegheny Ventures is to:

• grow its businesses to contribute at least 10 percent to Allegheny Energy’s total earnings within five years and

• continue to develop opportunities in telecommunications, existing real estate holdings, distributed generation, and other non-regulated services.

FUTURE OUTLOOK

Allegheny Ventures will actively explore growth markets, capitalizing on marketing opportunities that diversify and rapidly grow the Company’s earnings stream.
           
           
       
           
1 

Allegheny Energy Supply and Columbia Energy Services begin providing electricity and natural gas to 20 Pennsylvania State University campuses.
 

25 

Allegheny Power releases results of a comprehensive survey of residential customers that show perceptions of customer service have reached all-time highs.
 

 

2 

Allegheny Power customers in Pennsylvania begin receiving new two-page electric bills that separate the supply and delivery portions of the bill. The new bills are a result of the state’s Customer Choice Act.
 

 

 
 

4  The Board of Directors declares a regular quarterly dividend of 43 cents a share on the common stock.
 
5 

Allegheny announces a program to repurchase common stock worth up to $500 million.
 

22 

Allegheny Energy Supply teams with Hampton, Pa., to offer residents an incentive-based community aggregation program.
 

 

 
 

9 

Allegheny successfully completes a nationwide Y2K drill.
 

16 

Allegheny asks the SEC for approval to form an unregulated generating subsidiary.
 

23 

Allegheny reports first quarter earnings of $97.8 million, a 25 percent increase over 1998.
 

 

5 

Allegheny Energy Supply announces plans to install combustion turbines at Springdale, Pa., with output to be sold into competitive markets.
 

13 

Chairman, President, and CEO Alan J. Noia tells shareholders at the Annual Meeting that the Company will use its strengths to power its continued growth into the next century.
 

 

3 

The Board of Directors declares a regular quarterly dividend of 43 cents a share on the common stock.
 

8 

Collier, Pa., is added to the community aggregation program.
 

23 

Allegheny Communications Connect partners with three other companies to interconnect their fiber optic networks.
 

29 

Residents of Monroeville, Pa., join the community aggregation program.
 

30 

Allegheny Energy says all of its systems critical to supplying power to customers are Y2K ready.
 

6 

Sewickley, Pa., joins the community aggregation program.
 

15 

Allegheny Energy announces the appointment of three presidents to run its principal businesses.

Allegheny’s Pennsylvania subsidiary calls for the redemption of $79.7 million worth of outstanding shares of preferred stock.
 

19 

West Virginia Governor Cecil Underwood applauds Harrison and Rivesville Power Station employees for two million workhours without a lost-time injury.
 

26 

Etna, Pa., joins the community aggregation program.
 

27 

Allegheny reports second quarter earnings per share which are 25 percent higher than earnings for the same quarter of 1998.
 

10 

Allegheny Energy Supply announces the opening of a New Jersey office to sell electricity into the newly deregulated retail market.
 

18 

Allegheny Energy Supply is granted a license to do business in New Jersey.
 

26 

Allegheny Energy Supply is granted a license to do business in Delaware.
 

 

2 

The Board of Directors declares a regular quarterly dividend of 43 cents a share on the common stock.
 

9 

Allegheny announces an agreement to purchase the assets of West Virginia Power.

Allegheny successfully completes a second national Y2K drill.
 

13 

Osborne, Plum, and Moon, Pa., are added to the growing list of municipalities in the successful community aggregation program.
 

21 

Allegheny Energy Supply holds a ceremonial groundbreaking in Springdale, Pa., for new combustion turbines.
 

23  Allegheny’s Maryland subsidiary announces a positive settlement in its Maryland electric restructuring proceeding.
 
30 

Allegheny’s Maryland subsidiary calls for the redemption of $16.4 million of preferred stock.
 

15 

Allegheny Energy reports that increased earnings from nonutility energy sales, combined with higher sales to regular utility customers, resulted in an increase in year-to-date earnings.
 

22 

Allegheny Energy continues its long history of support for environmental conservation by announcing its third annual Environmental Stewardship Awards. The awards recognize employees for their voluntary participation in environmental activities.
 

 

1 

The number of municipalities participating in Allegheny Energy Supply’s community aggregation program jumps from eight to 23.
 

9 

Allegheny Power announces that its customer service has been ranked second in the East by a national research firm.
 

10 

Allegheny Energy Supply is awarded bids to provide more than 200 MW of electricity to a group of chemical companies in New Jersey—one of the largest committed energy aggregation projects in the United States.
 

12 

Allegheny is granted SEC approval to form its unregulated generating company.
 

16 

Allegheny announces the sale of $600 million in transition bonds from Pennsylvania restructuring.
 

18 

Allegheny Energy Supply begins operations.
 

1 

Two new combustion turbines at Springdale, Pa., go online.
 

2 

The Board of Directors declares a regular quarterly dividend of 43 cents a share on the common stock.
 

13 

The Public Service Commission of West Virginia approves the purchase of West Virginia Power.
 

20 

Allegheny announces plans to acquire Mountaineer Gas Company.
 

23 

Allegheny receives SEC approval to complete its purchase of West Virginia Power.
 

31  Allegheny closes on the purchase of West Virginia Power and the company begins doing business as Allegheny Power.
 
           
1 

Allegheny Energy successfully completes the transition to the year 2000.
 

4 

Allegheny Energy Supply announces plans to add a 540-MW combined-cycle generating plant at Springdale, Pa.
 

13 

Allegheny Communications Connect is expanding its fiber optic network by 600 route miles through a partnership with Adelphia Business Solutions.
 

27 

Allegheny Communications Connect announces a 10 percent ownership investment in Genosys Technology Management.