Fitch Ratings Lowers Allegheny Energy & Subs; Remains On Rating Watch Negative

Business Wire, Jan 9, 2003

--Remains on Rating Watch Negative.

Monongahela Power Company

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

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

--Commercial paper lowered to remains 'F3' from 'F2' and withdrawn;

--Remains on Rating Watch Negative.

Allegheny Energy Supply Company LLC

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

--Remains on Rating Watch Negative.

Allegheny Generating Company

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

--Remains on Rating Watch Negative.

Allegheny Energy Statutory Trust 2001

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

--Remains 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.