State Regulators Authorize Line to Reinforce Regional Electric
Grid
GREENSBURG, Pa.--(Business Wire)--
Trans-Allegheny Interstate Line Company (TrAILCo), a subsidiary of
Allegheny Energy, Inc. (NYSE: AYE), announced today that the Public
Service Commission of West Virginia issued an order late yesterday
approving construction of its 500-kilovolt transmission line project
in West Virginia subject to certain conditions.
"After a thorough, extensive public process, the Commission has
authorized this critical upgrade to the transmission system," said
Paul J. Evanson, Chairman, President, and Chief Executive Officer of
Allegheny Energy. "We commend the Commission for taking this important
action to improve the reliable flow of electricity in West Virginia
and throughout the mid-Atlantic area."
The order approves TrAILCo's preferred route, as well as certain
modifications south of Morgantown known as the Grafton Area Route and
other individual adjustments. The order also requires Commission
approval in the other states that the Trans-Allegheny Interstate Line
(TrAIL) must pass through, prior to beginning construction in West
Virginia. TrAILCo continues to evaluate other specifics of the order.
The Commission also approved TrAILCo's settlement agreement with
the Staff of the Public Service Commission of West Virginia, the
Consumer Advocate Division, and the West Virginia Energy Users Group
concerning TrAIL. The settlement provides specific benefits to West
Virginia, including:
-- Allegheny's West Virginia utilities (Monongahela Power Company
and The Potomac Edison Company) and TrAILCo will locate 100 to
150 managerial, professional, technical, and administrative
jobs in north-central West Virginia. This will involve
construction of a new facility in the state. The annual
payroll and benefits associated with the jobs at this facility
will be approximately $12 million.
-- Monongahela Power and Potomac Edison will not seek recovery in
West Virginia of the transmission charges associated with
TrAIL (estimated to be more than $31 million) for at least a
seven-year period beginning from January 2007.
-- TrAILCo will contribute $5 million to fund energy conservation
programs and assistance plans for low-income customers in West
Virginia over a five-year period.
-- Monongahela Power and Potomac Edison will provide rate relief
totaling approximately $6 million to industrial customers for
the years 2010 and 2011.
The West Virginia segments of TrAIL represent the largest portion
of the project, which is also awaiting regulatory decisions in
Virginia and Pennsylvania. Earlier in the week, the Hearing Examiner
in Virginia recommended that regulators in that state authorize
construction of the Virginia segments of TrAIL, subject to approvals
in West Virginia and Pennsylvania. TrAILCo expects decisions from
state regulators in Virginia and Pennsylvania later this year.
In the meantime, TrAILCo will proceed with pre-construction
activities, including: right-of-way acquisition, permitting, and
engineering activities in West Virginia. The construction phase will
last about two-and-a-half years, with TrAIL planned for completion by
June 2011.
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 approximately 1.6 million customers in Pennsylvania, West Virginia,
Maryland and Virginia. For more information, visit our 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:
Allen Staggers, 724-830-5433
Manager, Corporate Communications
Media Hotline: 888-233-3583
astagge@alleghenyenergy.com
or
Investor:
Max Kuniansky, 724-838-6895
Executive Director, Investor Relations
and Corporate Communications
mkunian@alleghenyenergy.com
Copyright Business Wire 2008
