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&lt;p style="margin-top: 18px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;b&gt;&lt;a name="tx103575_18"&gt; &lt;/a&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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&lt;p style="margin-top: 18px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;b&gt;&lt;a name="tx103575_18"&gt; &lt;/a&gt;NOTE 6: TRANSMISSION EXPANSION &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;b&gt; &lt;/b&gt;&lt;b&gt;&lt;i&gt;TrAIL Project.&lt;/i&gt;&lt;/b&gt;&lt;b&gt; &lt;/b&gt;TrAIL is a 500 kV high voltage line that, when completed, will extend from southwestern Pennsylvania through West Virginia to a point of interconnection with Virginia Electric and Power Company ("Dominion") in northern Virginia. The majority of the line will be constructed, owned and maintained by TrAIL Company. Dominion will construct and maintain a 30 mile segment of the line in Virginia that will be jointly owned by Dominion and TrAIL Company. TrAIL Company funds its ownership share of construction costs and operating expenses and receives its ownership share of operating revenues. &lt;/font&gt;&lt;/p&gt;
&lt;p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;In addition to the TrAIL line, TrAIL Company owns a static volt-ampere reactive power compensator at the Black Oak substation, implemented upgrades and/or replacements of transformers and/or buses at six other substations and owns a transmission operations center in West Virginia. &lt;/font&gt;&lt;/p&gt;
&lt;p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;b&gt;&lt;i&gt;PATH Project.&lt;/i&gt;&lt;/b&gt; The PATH project is comprised of a 765 kV transmission line that is proposed to extend from West Virginia through Virginia and into Maryland, modifications to an existing substation in Putnam County, West Virginia and the construction of new substations in Hardy County, West Virginia and Frederick County, Maryland. PJM initially authorized the construction of PATH in June 2007 and, on June&amp;nbsp;17, 2010, requested that PATH, LLC proceed with all efforts related to the PATH project, including state regulatory proceedings, assuming a required in-service date of June&amp;nbsp;1, 2015. Applications requesting authorization to construct the PATH project are currently pending before state commissions in West Virginia, Maryland and Virginia. Allegheny anticipates that decisions by the state commissions on these applications will be issued during the third quarter of 2011. &lt;/font&gt;&lt;/p&gt;
&lt;p style="margin-top: 12px; margin-bottom: 0px; font-size: 1px;"&gt;&amp;nbsp;&lt;/p&gt;
&lt;p style="margin-top: 0px; text-indent: 4%; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;Allegheny and a subsidiary of AEP formed PATH, LLC to facilitate the construction of the PATH project. In December&amp;nbsp;2007, PATH, LLC submitted a filing to FERC under Section&amp;nbsp;205 of the FPA to implement a cost of service formula rate effective March&amp;nbsp;1, 2008. In February&amp;nbsp;2008, FERC issued an order setting the formula rate and its protocols for hearing and authorizing a return on equity of 14.3%, a return on CWIP, recovery of prudently incurred start-up business and administrative costs incurred prior to the time the rates go into effect, and recovery of prudently incurred development and construction costs if the PATH project is abandoned as a result of factors beyond the control of PATH, LLC. In December 2008, PATH, LLC submitted to FERC a settlement with the active parties that resolves all issues set for hearing. FERC action on the settlement and requests for rehearing of the February&amp;nbsp;29, 2008 order with respect to return on equity are pending. &lt;/font&gt;&lt;/p&gt;&lt;/div&gt; &lt;/div&gt;</NonNumbericText>
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 TrAIL Project. TrAIL is a 500 kV high voltage line that, when completed, will extend from southwestern Pennsylvania through</NonNumericTextHeader>
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