Allegheny Energy yesterday announced a proposal by its electricity delivery business, Allegheny Power, to build the Trans-Allegheny Interstate Line - a new transmission line from West Virginia to central Maryland.

The project, as described in the filing with the regional transmission organization, PJM Interconnection, is aimed at improving system reliability and reducing transmission congestion in the region.

"Maintaining an adequate transmission grid is key to our mission of delivering reliable electric service," said Paul J. Evanson, chairman, president and chief executive officer of Allegheny Energy. "Our investment in the transmission network must keep pace with the growing demand in PJM, and reducing congestion will bring cost-competitive power to more consumers."

The proposed 500-kV transmission line would span about 330 miles, all within Allegheny's service territory, from the Weirton, West Virginia, area to near Kemptown, Maryland. Allegheny's proposal will make effective use of existing facilities, properties and rights-of-way.

Allegheny's plan requests that PJM incorporate the proposal into its next Regional Transmission Expansion Plan. PJM is expected to approve its plan in June 2006. If approved by PJM, Allegheny will seek state authorizations to build the line.

Allegheny also filed a request for the Federal Energy Regulatory Commission to authorize certain incentive rate treatments and plans to request that the U.S. Department of Energy designate the project as a National Interest Electric Transmission Corridor. Initial engineering and planning is expected to begin in 2007, with the first segment in place in 2013. The projected cost is approximately $1.4 billion.