_________________

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

_________________

FORM 10-Q

_________________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2004

Commission File Number	Name of Registrant State of Incorporation Address of Principal Executive Offices and Telephone Number	IRS Employer Identification Number
1-267	ALLEGHENY ENERGY, INC. (A Maryland Corporation) 800 Cabin Hill Drive Greensburg, Pennsylvania 15601 Telephone (724) 837-3000	13-5531602
333-72498	ALLEGHENY ENERGY SUPPLY COMPANY, LLC (A Delaware Limited Liability Company) 4350 Northern Pike Monroeville, Pennsylvania 15146-2841 Telephone (412) 858-1600	23-3020481
1-5164	MONONGAHELA POWER COMPANY (An Ohio Corporation) 1310 Fairmont Avenue Fairmont, West Virginia 26554 Telephone (304) 366-3000	13-5229392
1-3376-2	THE POTOMAC EDISON COMPANY (A Maryland and Virginia Corporation) 800 Cabin Hill Drive Greensburg, Pennsylvania 15601 Telephone (724) 837-3000	13-5323955
1-255-2	WEST PENN POWER COMPANY (A Pennsylvania Corporation) 800 Cabin Hill Drive Greensburg, Pennsylvania 15601 Telephone (724) 837-3000	13-5480882
0-14688	ALLEGHENY GENERATING COMPANY (A Virginia Corporation) 800 Cabin Hill Drive Greensburg, Pennsylvania 15601 Telephone (724) 837-3000	13-3079675

This combined Form 10-Q is separately filed by Allegheny Energy, Inc., Allegheny Energy Supply Company, LLC, Monongahela Power Company, The Potomac Edison Company, West Penn Power Company and Allegheny Generating Company. Information contained in the Form 10-Q relating to Allegheny Energy Supply Company, LLC, Monongahela Power Company, The Potomac Edison Company, West Penn Power Company and Allegheny Generating Company is filed by such registrant on its own behalf. Each of Allegheny Energy Supply Company, LLC, Monongahela Power Company, The Potomac Edison Company, West Penn Power Company and Allegheny Generating Company makes no representation as to information relating to registrants other than itself.

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes X No

Indicate by check mark whether the registrants are accelerated filers (as defined in Rule 12b-2 of the Exchange Act).


Allegheny Energy, Inc. Allegheny Energy Supply Company, LLC Monongahela Power Company The Potomac Edison Company West Penn Power Company Allegheny Generating Company	Yes Yes Yes Yes Yes Yes	X	No No No No No No	X X X X X

Number of shares outstanding of each class of common stock as of July 30, 2004:


Allegheny Energy, Inc.	127,112,883	( $1.25 par value)
Allegheny Energy Supply Company, LLC	(a)
Monongahela Power Company	5,891,000	($50.00 par value)
The Potomac Edison Company	22,385,000	( $0.01 par value)
West Penn Power Company	24,361,586	( no par value)
Allegheny Generating Company	1,000	( $1.00 par value)

(a) The registrant is a limited liability company, the interests in which are not represented by shares.

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Allegheny Energy, Inc.: Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003 ..................................................................................................................	7 8 9-10
Allegheny Energy Supply Company, LLC: Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003 ..................................................................................................................	11 12 13-14
Monongahela Power Company: Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003 ..................................................................................................................	15 16 17-18
The Potomac Edison Company: Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003 ..................................................................................................................	19 20 21-22
West Penn Power Company: Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 ................................................................................................ Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003 ..................................................................................................................	23 24 25-26
Allegheny Generating Company: Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003 .......................................................................................................... Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 .......................................................................................................... Balance Sheets as of June 30, 2004 and December 31, 2003 ...................................................	27 28 29-30
Combined Notes to Financial Statements ............................................................................	31-53
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) ...........................................................................................	53-89
Item 3. Quantitative and Qualitative Disclosures About Market Risk ...........................	90
Item 4. Controls and Procedures ......................................................................................	90
PART II. OTHER INFORMATION
Item 1. Legal Proceedings .................................................................................................	92
Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities ................................................................................................................	9286
Item 3. Defaults Upon Senior Securities ............................................................................	92
Item 4. Submission of Matters to Vote of Security Holders ............................................	92
Item 5. Other Information ..................................................................................................	93
Item 6. Exhibits and Reports on Form 8-K .......................................................................	94
Signatures ................................................................................................................................	100

GLOSSARY

I. The following abbreviations and terms are used in this report to identify Allegheny Energy, Inc. and its
subsidiaries:


AE	Allegheny Energy, Inc., a diversified utility holding company.
AE Supply	Allegheny Energy Supply Company, LLC, an unregulated generation subsidiary of Allegheny Energy, Inc.
AGC	Allegheny Generating Company, an unregulated generation unit of Allegheny Energy, Inc.
Allegheny	Allegheny Energy, Inc. together with its consolidated subsidiaries.
Allegheny Ventures	Allegheny Ventures, Inc., an unregulated subsidiary of Allegheny Energy, Inc.
Distribution Companies	Collectively, Monongahela Power Company, The Potomac Edison Company and West Penn Power Company. The Distribution Companies do business as "Allegheny Power."
Monongahela	Monongahela Power Company, a regulated subsidiary of Allegheny Energy, Inc.
Mountaineer	Mountaineer Gas Company, a subsidiary of Monongahela Power Company.
Potomac Edison	The Potomac Edison Company, a regulated subsidiary of Allegheny Energy, Inc.
West Penn	West Penn Power Company, a regulated subsidiary of Allegheny Energy, Inc.

II. The following abbreviations and acronyms are used in this report to identify entities and terms relevant to
Allegheny's business and operations:


2003 Annual Report on Form 10-K	Annual Report on the combined Form 10-K of Allegheny Energy, Inc., Allegheny Energy Supply Company, LLC, Monongahela Power Company, The Potomac Edison Company, West Penn Power Company and Allegheny Generating Company for the year ended December 31, 2003.
Borrowing Facilities	Agreements entered into on February 25, 2003 and March 13, 2003 by AE, AE Supply, Monongahela and West Penn with various credit providers to refinance and restructure the majority of AE and AE Supply's short-term debt
CDWR	California Department of Water Resources
CDWR contract	2001 power sale contract between AE Supply and the CDWR to hedge certain long-term power purchase commitments. AE Supply sold the CDWR contract and associated hedge transactions in September 2003
Clean Air Act	Clean Air Act of 1970
EITF	Emerging Issues Task Force
EPA	United States Environmental Protection Agency
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission, an independent commission within the Department of Energy
FIN	FASB Interpretation Number
GAAP	Generally Accepted Accounting Principles of the United States of America
KWh	Kilowatt-hour
Mcf	Thousand cubic feet
MW	Megawatt
MWh	Megawatt-hour
NSR	The New Source Performance Review Standards or "New Source Review" standards applicable to facilities deemed "new" sources of emissions;
New AE Facility	Agreement entered into on March 8, 2004 by AE with various credit providers to provide AE with an unsecured $300 million borrowing facility. The New AE Facility is part of the New Loan Facilities.
New Loan Facilities	Agreements entered into on March 8, 2004 by AE and AE Supply with various credit providers to refinance and restructure the majority of the Borrowing Facilities
PJM	PJM Interconnection, LLC, a regional transmission organization
PLR	Provider-of-last-resort
PUHCA	Public Utility Holding Company Act of 1935, as amended
PURPA	Public Utility Regulatory Policies Act of 1978
SEC	United States Securities and Exchange Commission
SFAS	Statement of Financial Accounting Standards
SFAS No. 71	SFAS No. 71, "Accounting for the Effects of Certain Types of Regulation"
SFAS No. 133	SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended by SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133 - an amendment of FASB Statement No. 133", SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities - an amendment of FASB Statement No. 133", and SFAS No. 149, "Amendment of SFAS No. 133 on Derivative Instruments and Hedging Activities"

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2004			2003			2004			2003
Operating revenues	$	657,114		$	359,214		$	1,546,834		$	1,074,905
Operating expenses:
Fuel consumed in electric generation		140,927			134,054			302,882			292,826
Purchased power and transmission		79,772			81,527			160,890			167,795
Cost of utility gas sold		26,603			25,545			117,106			121,504
Deferred energy costs, net		(118	)		(6,965	)		16,613			(20,624	)
Operations and maintenance		245,624			283,867			457,408			596,368
Depreciation and amortization		85,191			79,474			168,482			157,085
Taxes other than income taxes		53,201			50,735			112,714			111,362

Total operating expenses		631,200			648,237			1,336,095			1,426,316

Operating income (loss)		25,914			(289,023	)		210,739			(351,411	)
Other income, net (Note 11)		4,790			1,353			12,864			81,613
Interest expense and preferred dividends:
Interest expense		98,917			114,662			229,846			210,227
Preferred dividend requirements of subsidiary		1,260			1,260			2,519			2,519

Total interest expense and preferred dividends		100,177			115,922			232,365			212,746

Loss before income taxes, minority interest
and cumulative effect of accounting changes		(69,473	)		(403,592	)		(8,762	)		(482,544	)
Income tax benefit		(29,297	)		(167,378	)		(3,723	)		(205,396	)
Minority interest in net (loss) income of subsidiaries		(720	)		(4,695	)		1,139			(7,585	)

Loss before cumulative effect of accounting
changes		(39,456	)		(231,519	)		(6,178	)		(269,563	)
Cumulative effect of accounting changes, net of taxes
of $12,974 (Notes 3 and 12)		--			--			--			(20,765	)

Net loss	$	(39,456	)	$	(231,519	)	$	(6,178	)	$	(290,328	)

Basic and diluted loss per common share:
Loss before cumulative effect of accounting changes	$	(0.31	)	$	(1.82	)	$	(0.05	)	$	(2.13	)
Cumulative effect of accounting changes, net		--			--			--			(0.16	)

Net loss per common share	$	(0.31	)	$	(1.82	)	$	(0.05	)	$	(2.29	)

See accompanying Combined Notes to Financial Statements

Table of Contents

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Six Months Ended June 30,
	2004			2003
Cash Flows From Operating Activities:
Net loss	$	(6,178	)	$	(290,328	)
Cumulative effect of accounting changes, net		--			20,765

Loss before cumulative effect of accounting changes		(6,178	)		(269,563	)
Adjustments for noncash (credits) and charges:
Reapplication of SFAS No. 71		--			(75,824	)
Depreciation and amortization		168,482			157,085
(Gain) loss on asset sales		(12,074	)		30,917
Minority interest		1,139			(7,585	)
Deferred investment credit and income taxes, net		(1,875	)		(142,499	)
Unrealized losses on commodity contracts, net		8,350			380,710
Other, net		65,164			(18,681	)
Changes in certain assets and liabilities:
Accounts receivable, net		46,524			93,919
Materials and supplies		8,468			(31,351	)
Taxes receivable/accrued, net		(38,957	)		96,709
Prepaid taxes		(5,803	)		(9,721	)
Collateral deposits		(66,370	)		(54,110	)
Accounts payable		29,705			(45,722	)
Accrued payroll		(1,411	)		(18,397	)
Interest accrued		8,482			4,672
Purchased options		(1,169	)		11,689
Commodity contract termination costs		(259	)		(47,706	)
Other, net		(27,110	)		(2,115	)

Net cash from operating activities		175,108			52,427

Cash Flows Used In Investing Activities:
Capital expenditures		(118,514	)		(140,539	)
Acquisition of electric generating facility		--			(318,435	)
Proceeds from sale of businesses and assets		13,680			46,168
Decrease (increase) in restricted funds		26,840			(15,467	)
Other investments		(1,653	)		8,826

Net cash used in investing activities		(79,647	)		(419,447	)

Cash Flows (Used In) From Financing Activities:
Net repayments of short-term debt		(53,610	)		(1,122,181	)
Issuance of long-term debt		1,594,921			1,931,507
Retirement of long-term debt		(1,858,638	)		(270,928	)

Net cash (used in) from financing activities		(317,327	)		538,398

Net (decrease) increase in cash and cash equivalents		(221,866	)		171,378
Cash and cash equivalents at beginning of period		528,612			204,231

Cash and cash equivalents at end of period	$	306,746		$	375,609

See accompanying Combined Notes to Financial Statements

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	June 30, 2004			December 31, 2003

ASSETS
Current Assets:
Cash and cash equivalents	$	306,746		$	528,612
Accounts receivable:
Customer		202,248			203,801
Unbilled utility revenues		128,358			172,891
Wholesale and other		40,214			46,257
Allowance for uncollectible accounts		(23,086	)		(29,329	)
Materials and supplies		109,901			109,651
Fuel, including stored gas		90,785			98,097
Deferred income taxes		59,501			44,610
Prepaid taxes		52,208			46,405
Collateral deposits		117,545			51,175
Commodity contracts		29,927			24,390
Restricted funds		18,187			120,873
Regulatory assets		52,289			68,665
Other		25,484			31,186

Total current assets		1,210,307			1,517,284
Property, Plant and Equipment:
Generation		6,648,399			6,597,195

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

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2004

TABLE OF CONTENTS

GLOSSARY

ALLEGHENY ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(unaudited)

ALLEGHENY ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)

ALLEGHENY ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in thousands)(unaudited)

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

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

ALLEGHENY ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)