Operating revenues increased by $27.4 million, reflecting higher generation rates in Pennsylvania, increased market prices and revenue from transmission expansion projects and capacity auctions, partially offset by lower generation output.

EBITDA for the first quarter of 2008 was $323.1 million, an increase of $10.5 million, compared to the same quarter of 2007.

Paul Evanson, chairman, president and CEO of Allegheny Energy, said: Higher generation rates, increased market prices and lower income taxes were key contributors to our improved financial results for the quarter.

We remain well-positioned to deliver strong earnings growth for the full year 2008 and beyond. Securing approvals for transmission expansion and resolving our Virginia regulatory issues remain top near-term priorities.