GREENSBURG, Pa.--(Business Wire)--
Allegheny Energy, Inc. (NYSE: AYE) today announced that the
Virginia State Corporation Commission has issued an order regarding
recovery of purchased power costs for Potomac Edison, an Allegheny
subsidiary. In today's order, the Commission:
-- Found that the ratemaking provisions of a memorandum of
understanding (MOU), entered into by Allegheny and approved by
the Commission, expire on December 31, 2008;
-- Stated that it requires additional evidence and legal argument
to set appropriate rates for 2008 and 2009; and
-- Directed the company to file plans for meeting its projected
load obligations in Virginia, including alternatives for
placing generation in Allegheny's Virginia rate base to serve
Virginia customers.
The MOU was adopted in 2000 during Virginia's restructuring of the
electric utility industry and contains certain ratemaking provisions
applicable during the rate cap and default service periods. In 2007,
the Virginia General Assembly enacted legislation ending rate caps and
default service on December 31, 2008.
On May 16, 2008, the Commission granted Potomac Edison an interim
rate increase to recover certain costs for purchasing power to serve
its Virginia customers. The interim increase is designed to allow the
company to recover approximately $73 million for the 12-month period
beginning on July 1, 2008. The interim rate increase is temporary and
subject to refund until the Commission issues a final order. The
Commission's procedural schedule includes a public hearing on October
21, 2008.
Allegheny Energy
Headquartered in Greensburg, Pa., Allegheny Energy is an
investor-owned electric utility with total annual revenues of over $3
billion and more than 4,000 employees. The company owns and operates
generating facilities and delivers low-cost, reliable electric service
to 1.6 million customers in Pennsylvania, West Virginia, Maryland and
Virginia. For more information, visit the company's Web site at
www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release contains a
number of "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Words such as anticipate,
expect, project, intend, plan, believe, and words and terms of similar
substance used in connection with any discussion of future plans,
actions, or events identify forward-looking statements. These include
statements with respect to: rate regulation and the status of retail
generation service supply competition in states served by Allegheny
Energy's distribution business, Allegheny Power; financing plans;
demand for energy and the cost and availability of raw materials,
including coal; provider-of-last-resort and power supply contracts;
results of litigation; results of operations; internal controls and
procedures; capital expenditures; status and condition of plants and
equipment; capacity purchase commitments; regulatory matters; and
accounting issues. Forward-looking statements involve estimates,
expectations and projections and, as a result, are subject to risks
and uncertainties. There can be no assurance that actual results will
not materially differ from expectations. Actual results have varied
materially and unpredictably from past expectations. Factors that
could cause actual results to differ materially include, among others,
the following: plant performance and unplanned outages; changes in the
price of power and fuel for electric generation; general economic and
business conditions; changes in access to capital markets;
complications or other factors that render it difficult or impossible
to obtain necessary lender consents or regulatory authorizations on a
timely basis; environmental regulations; the results of regulatory
proceedings, including proceedings related to rates; changes in
industry capacity, development and other activities by Allegheny
Energy's competitors; changes in the weather and other natural
phenomena; changes in customer switching behavior and their resulting
effects on existing and future load requirements; changes in the
underlying inputs and assumptions, including market conditions used to
estimate the fair values of commodity contracts; changes in laws and
regulations applicable to Allegheny Energy, its markets or its
activities; the loss of any significant customers or suppliers;
dependence on other electric transmission and gas transportation
systems and their constraints or availability; changes in PJM,
including changes to participant rules and tariffs; the effect of
accounting policies issued periodically by accounting standard-setting
bodies; and the continuing effects of global instability, terrorism
and war. Additional risks and uncertainties are identified and
discussed in Allegheny Energy's reports filed with the Securities and
Exchange Commission.
Allegheny Energy, Inc.
Media contact:
Mark Nitowski, 724-838-6718
Manager, Corporate Communications
Media Hotline: 888-233-3583
E-mail: mnitows@alleghenyenergy.com
or
Investor contact:
Max Kuniansky, 724-838-6895
Executive Director, Investor Relations
and Corporate Communications
E-mail: mkunian@alleghenyenergy.com
Copyright Business Wire 2008
