Correct: Fitch Dwgr Allegheny Energy & Subsidiaries; Rtgs On Watch Neg

Business Wire, Oct 15, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 15, 2002

(This is an amended version of a press release dated October 8, 2002. Correction: The rating for the Monongahela Power Company medium-term notes/Pollution control revenue bonds (unsecured) were incorrect. These bonds were lowered to 'BBB-' from 'BBB '.)

Fitch Ratings has lowered the ratings of Allegheny Energy, Inc (AYE) and its subsidiaries Allegheny Energy Supply Co. LLC, Monongahela Power Company, Potomac Edison Company, West Penn Power Company, Allegheny Generating Company and AE Supply's special purpose entity Allegheny Energy Supply Statutory Trust 2001. Fitch has placed the ratings for AYE and it subsidiaries on Rating Watch Negative. A detailed press release will follow shortly.

The ratings affected are listed below:

Allegheny Energy, Inc.

--Senior unsecured debt lowered to 'BB' from 'BBB';

--Commercial paper lowered to 'B' from 'F2' and withdrawn;

--Ratings Placed on Rating Watch Negative.

West Penn Power Company

--Medium-term notes lowered to 'BBB-' from 'A-';

--Commercial paper lowered to "B" from "F2" and withdrawn;

--Ratings Placed on Rating Watch Negative.

Potomac Edison Company

--First mortgage bonds lowered to 'BBB' from 'A-';

--Senior unsecured notes lowered to 'BBB-' from 'BBB ';

--Commercial paper remains unchanged at 'F2';

--Ratings Placed on Rating Watch Negative.

Monongahela Power Company

--First mortgage bonds lowered to 'BBB' from 'A-';

--Medium-term notes/Pollution control revenue bonds (unsecured) lowered to 'BBB-' from 'BBB ';

--Preferred stock lowered to 'BB ' from 'BBB';

--Commercial paper remains unchanged at 'F2';

--Ratings placed on Rating Watch Negative.

Allegheny Energy Supply Company LLC

--Senior unsecured notes lowered to 'BB-' from 'BBB-';

--Commercial paper remains at 'B' and withdrawn;

--Ratings Placed on Rating Watch Negative.

Allegheny Generating Company

--Senior unsecured debentures lowered to 'BB-' from 'BBB-';

--Commercial paper remains at 'B' and withdrawn;

--Ratings Placed on Rating Watch Negative.

Allegheny Energy Statutory Trust 2001

--Senior Secured Notes lowered to 'BB-' from 'BBB-';

--Ratings Placed on Rating Watch Negative.

The ratings not affected are as follows:

West Penn Funding LLC

--Transition bonds 'AAA'.

Allegheny Energy Supply Company LLC

--Pollution control bonds (MBIA-Insured) 'AAA'.

AYE is a registered utility holding company, which owns three regulated utilities, Monongahela Power, Potomac Edison and West Penn Power and two non-utility subsidiaries. The utilities deliver electric and gas service to 1.5 million customers in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia and 230,000 customers in West Virginia, respectively. AYE's non-utility subsidiaries consist of AE Supply Co. LLC, which develops, acquires, owns and operates generating plants and is a marketer of electricity and other energy products and Allegheny Ventures which is involved in telecommunications and energy related projects.