FORM 4

_____   Check this line if no longer subject to             Section 16. Form 4 or Form 5 obligations              may continue. See Instruction (b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting  Person Gagliardi        Richard              J (Last)               (First)            (Middle) 10435 Downsville Pike (Street) Hagerstown       MD              21740 (City)                (State)            (Zip)

2.  Issuer Name and Ticker or Trading Symbol Allegheny Energy, Inc. - AYE

6.  Relationship of Reporting Person(s) to Issuer (Check all applicable) _ _  Director  ___  10% Owner _X_  Officer (give title below) ___  Other (specify below) Vice President _______________________________________

3.  I.R.S. Identification Number of Reporting Person,      if an entity (voluntary) ###-##-####

4.  Statement for Month/Year       10/2002 5.  If Amendment,     Date of Original     (Month/Year)

7.  Individual or Joint/Group Filing      (Check Applicable Line) _X__  Form filed by One Reporting Person ____  Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1. Title of Security (Instr. 3)

2. Transaction Date (Month/Day/Year)

3. Transaction Code (Instr. 8)

4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)

5. Amount of Securities Beneficially Owned at End of Month (Instr. 3 and 4)

6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)

7. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

Amount

(A) or (D)

Price

Allegheny Energy, Inc.

10/01/02

J

2861.743***

D

$13.19

22048.6511

D

****

Common Stock ($1.25 par value)

*** Transferred to spouse pursuant to a qualified domestic relations order. **** Includes shares acquired through dividend reinvestment and/or employee stock ownership and savings plan.

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr.3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)

6. Date Exerciseable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned at End of Month (Instr. 4)

10. Ownership Form of Derivative Securities Beneficially Owned at End of Month (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Option - Grant	82,000	D
(right to buy)

Explanation of Responses:
	**Signature of Reporting Person	/s/ RICHARD J. GAGLIARDI                                              Date 10/24/2002
Reminder:	Report on a separate line for each class of securities beneficially owned directly or indirectly.
*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note:	File three copies of this Form, on of which must be manually signed. If space is insufficient, see Instruction 6 for procedure