SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

SERKES JEFFREY D

(Last)

(First)

(Middle)

C/O ALLEGHENY ENERGY, INC.

800 CABIN HILL DRIVE

(Street)

GREENSBURG

15601

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
ALLEGHENY ENERGY, INC [ AYE ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Sr. VP & Chief Fin. Officer

3. Date of Earliest Transaction (Month/Day/Year)
03/31/2006

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. 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)	2A. Deemed Execution Date, if any (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 Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock, $1.25 par value	03/31/2006		M		107,218⁽¹⁾	A	$34.17⁽²⁾	160,372	D
Common Stock, $1.25 par value	03/31/2006		F		40,124⁽³⁾	D	$34.17⁽²⁾	120,248	D
Common Stock, $1.25 par value								682.4833	I	ESOSP⁽⁴⁾

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)	3A. Deemed Execution Date, if any (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 Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Units	⁽⁵⁾	03/31/2006		M			107,218	⁽⁵⁾	⁽⁵⁾	Common Stock	107,218	⁽⁵⁾	559,923	D

Explanation of Responses:

1. Represents shares of the Issuer's Common Stock issued to Mr. Serkes in connection with the vesting Stock Units.

2. Calculated based on the average of the high and low sale prices for a share of the Issuer's Common Stock on the New York Stock Exchange on March 31, 2006.

3. Shares of the Issuer's Common Stock withheld as payment for minimum federal, state and local tax withholdings required.

4. Held through the Allegheny Energy, Inc. Employee Stock Ownership and Savings Plan.

5. Mr. Serkes was granted 714,795 Stock Units on February 18, 2004. One-third of the Stock Units vested on July 3, 2004 and one-third vested on July 3, 2005. The remaining one-third will vest on July 3, 2006, provided that Mr. Serkes is an employee of the Issuer on that date. The Issuer pays holders of Stock Units the full value of each vested Stock Unit in shares of its Common Stock, subject to the holder's election to defer payments, if any. With respect to the Stock Units that vested on July 3, 2004, Mr. Serkes elected to receive 23,827 of the underlying shares on July 3, 2004 and to defer his receipt of the remaining 214,438 shares until July 3, 2006. With respect to the Stock Units that vested on July 3, 2005, Mr. Serkes elected to receive 23,827 of the underlying shares on July 3, 2005 and to defer his receipt of (a) 107,218 shares until March 31, 2006 and (b) 107,220 shares until January 2, 2007.

	/s/ Amanda J. Skov, Attorney-in-Fact	04/04/2006
	** Signature of Reporting Person	Date
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).
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