Item 8.01 Other Events
In connection with a review of its executive compensation practices, Allegheny Energy, Inc. (the "Company") has determined that (i) it will no longer include excise tax gross-up payment provisions in new and materially amended agreements with its officers that contain change in control provisions and
(ii) any new participant entering the Company's Executive Change in Control Severance Plan after May 5, 2009 is not and will not be entitled to the excise tax gross-up provided under the Plan. However, executives who were entitled to receive the excise tax gross-up prior to May 5, 2009 will be "grandfathered" and continue to be entitled to the excise tax gross-up.

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